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The current real estate market also has a zero tolerance policy for properties that are overpriced or not staged properly. That means the buyers will not make an offer. The real estate agents will joke about the functional obsolescence.

The secret about the real estate market is that a properly priced property will attract buyer showings. A correct price and proper staging will cause a buyer to write an offer on the house. It's that simple! Conversely, if the property is not being shown, it's not aggressively priced.

I have a property listed for sale at 250k. The last two comps are 245k. The seller vacated the house, but failed to clean the carpets. The interior of the house is white with a different color accent wall in four rooms. The seller refuses to paint the walls, steam clean the carpets, or lower the price. Oh, by the way, this client can't understand why the house has not sold.

A wise man once said, "When the student is ready the teacher will appear." For over 30 years I have suggested sellers begin by pricing their house 'below appraisal.' Then, slowly reduce the price until buyers appear & an acceptable offer is negotiated. This is a very simple solution to selling a property. Unfortunately, it's not easy due to human emotions that are involved.

It is a buyer's market, and they have zero tolerance for improper pricing, old carpeting, and outlandish colors. Beauty is in the eye of the beholder. Pricing is based on supply and demand. The definition of insanity is to keep the old price, the old paint, and the old carpeting, and hope for a different buyer.

by Paul Pastore

Most major lenders are freezing access to Home Equity Lines of Credit (HELOCs) . Millions of Americans use their HELOCs as their families security blanket to weather any unplanned financial storms. If you were planning on using your HELOC for spring home improvements, medical bills or college tuition, chances are the money has been, or will be shut off.

Most major lenders have been working together in collusion. Behind closed doors, these lenders have created a secret plan to cut off  access to your home equity lines of credit.

You must be aware that the lender retains the right to cut off or reduce your line of credit at their sole discretion.  Lenders are now arbitrarily reassessing properties and then locking out access for homeowners when the lenders believe the property has negative equity.

What can you do about this when you are affected?

Nothing.

From Countrywide, (this is part of a letter sent to home owners):

'Important message about your loan: At Countrywide Home Loans we are committed to helping customers sustain homeownership. As part of the commitment, and in keeping with its sound risk-management and responsible lending practices, Countrywide Home Loan is reviewing and analyzing home equity lines of credit in its servicing portfolio.

As you know, home values in many areas of the country have declined. We believe that the decline in the value of your property, from its original appraised value at the time your loan was made is significant. In accordance with the terms of your Home Equity Credit Line Agreement and Disclosure Statement (Agreement), we have elected to suspend further draws against your account as of the Effective Date above.'

More Than 122,000 Have Already Lost The Right To Borrow From Their Credit Lines And We Are Just Getting Started.

On Friday, the Los Angeles Times reported that Countrywide notified many homeowners they've lost their right to borrow against their credit lines:

'Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They've been told by their lender that they can no longer take money out on their credit lines because sinking home prices have left them with little or no equity.

Among the lenders taking such action is Countrywide Financial Corp., which sent 122,000 letters to customers last week telling them they could no longer borrow against their credit lines. In some cases, according to the company, the borrowers are now "upside down"—the total debt on the home exceeds the market value of the property.

Calabasas-based Countrywide, the nation's largest mortgage lender, says it uses computer modeling that factors in changes in home prices to determine which customers will have their money tap shut off.'

Countrywide is not alone. This is a partial list of the Mortgage Lenders who are sending HELOC freeze letters now.

Bank of America - HELOC Freeze

Countrywide - HELOC Freeze

Chase - HELOC Freezes

CitiGroup - HELOC Freeze under review

National City - HELOC Freeze

Suntrust - HELOC Freeze

USAA Federal Savings - HELOC Feeeze

Washington Mutual - HELOC Freeze

If there was any question that consumers were feeling the financial pinch before...just wait until they are told that their homes are worth LESS than what they owe.  In the words of Countrywide..."Significantly Less." What effect will this have on the economy...think this will make consumers feel more confident about housing?

by Tim and Julie Harris