June 16, 2008 Edition

Your Voice Is Needed Now

Speak out against the proposed ban on seller-assisted down payments

Get on the phone. Break out the pen and paper. Send those e-mails.

Once again, legislators are looking for ways to make it harder for low- and middle-income consumers to buy a home. Subsequently, that’s one more way they could make it harder for HVA to sell houses.

Translation: that’s one big reason our collective voice needs to be heard.

Today, with seller-assisted down payments, FHA loans are the preferred way that countless Americans are buying their very first home. On June 9, however, FHA Commissioner Brian Montgomery said government backed loans made to borrowers who receive such assistance go into foreclosure at three times the rate of loans in which borrowers pay for their own down payment. According to Montgomery, 35 percent of the FHA's loan portfolio are loans with seller-assisted down payments, and that’s too high a risk.

Montgomery’s answer is simple: ban sellers from helping with down payments.

MarketWatch, part of The Wall Street Journal network, reported: “The primary focus of the proposed rule is to establish appropriate standards for down payment assistance that is categorized as a gift, HUD said. Specifically, it would prohibit down payment assistance provided before, during or after closing of the sale by the seller, any other person or entity that financially benefits from the transaction, or any third party or entity that is reimbursed directly or indirectly by any of the parties benefiting from the sale.”

How many homes would you still have in your inventory if such help was not allowed?

Assisting buyers with their down payments has been good for your business, good for the tax rolls, and good for consumers. Your legislators need to know that!

For a sample letter of what to send your legislators, click here.

In answer to the melting subprime-mortgage market, FHA-insured mortgages, which require a down payment, have become more popular. But these are the same buyers who don’t have a big savings account or a string of assets to their name.

Scott Syphax, CEO of Nehemiah Corporation of America, the largest private down-payment assistance provider, said there is no doubt that the FHA and its parent agency, the Department of Housing and Urban Development, would harm low- and middle-income home buyers with the new rule.

"It is astonishing that HUD has the temerity to resubmit its rule banning private down payment assistance, given that two district courts have thrown out the rule, down payment assistance has received extremely strong bipartisan support in Congress and has been championed by a number of significant and influential consumer and policy groups including the U.S. Conference of Mayors, National Urban League and Congressional Hispanic Caucus," Syphax said. “The government cannot and should not be in the business of restricting access to homeownership," he said.

Write your legislators today!

Visit the U.S. House of Representatives site and the U.S. Senate Web sites for more information on how to contact your legislators.

HVA Reaches 35,000 Houses...And Counting

Purchase of Houston house creates a new HVA milestone
By Leah Templeton

Less than one year after reaching the 30,000 milestone, the HVA franchise network has purchased its 35,000^th house.

The house was purchased by Eddie and Debbie Gant of Advantage House Buyers in Houston.

“This is another huge landmark for our company,” said John Hayes, president and CEO of HomeVestors. “With the current crises in the credit markets and housing, the purchase of the 35,000^th house reaffirms that our franchisees provide a valuable and needed service to people all over America, no matter the state of the real estate market."

The Gants joined HomeVestors nine years ago and said this recent purchase was a perfect example of how their business helps customers out of ugly real estate situations. The three-bedroom, two-bath, 1,681 square-foot home in Northeast Houston was in need of repairs. Initially, the owners of the property were planning to rehab the house. Due to financial constraints, however, they needed to sell quickly. That’s when they contacted HomeVestors.

“We know the Northeast Houston area very well,” said Eddie. “In the last nine years, we have purchased and rehabbed almost 30 homes here and we are happy to continue making the neighborhoods a better place to live, one house at a time.”

After a “kick-off meeting” between Gant and his contractors to go over the specifications of the project, the contractors will spend the next month fixing leaky pipes, replacing rotted wood and damaged drywall, repainting the interior and adding landscaping.

Hayes added that showcasing the purchase of HVA's 35,000^th house is the perfect way to illustrate everything that's important about HomeVestors.

“For the last 12 years our franchisees have changed the landscape of residential real estate," he said. "And with so much attention surrounding foreclosures and troubled homeowners, we are happy to showcase how we are helping people out of ugly real estate situations when they need our services the most. We are buying and transforming eyesores into beautiful homes that people are proud to own.”

. . . Leah Templeton is an account executive with HVA's public relations agency, BizCom Associates.

It's Back And It's Even Uglier

HVA launches second annual "Ugliest House of the Year Contest"

Is uglier really better? It is when you're talking about the Ugliest House of the Year contest, now in its second year.

From now through Sept. 15, franchisees are invited to enter high-resolution interior and exterior photography of their ugliest house. Digital video footage can also be submitted along with the photos.

Beginning Oct. 1 through Nov. 15 the general public and investors will cast online votes for their favorite ugly house.

"The second annual Ugliest House of the Year contest will be even bigger, better and uglier than last year," said John Hayes, HVA president and CEO. "We had an overwhelming response last year, but expect the number of entries and online votes for this year's contest to increase dramatically."

The winner of the contest will be announced at the HVA Annual Convention in Las Vegas. Prizes will be awarded for the top three ugliest houses with first place receiving a $10,000 advertising credit, second place a $5,000 advertising credit and third place a $2,500 advertising credit.

And this time voters are getting a piece of the action, too. Each voter will be entered for a chance to win a $10,000 prepaid debit card. The offer is expected to drive more traffic to the site for voting.

. . . For more information about the contest contact Mark Hagen at mark.hagen@homevestors.com.