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Show The Ogden Valley news Page Volume XVIII Issue V August 15, 2010 New HAFA Program for Distressed Property Owners The market is stabilizing but distressed property owners still represent an overwhelming number with more expected in the future. Several of the modifications in process are expected to fail going forward and the government has created the HAFA (Home Affordable Foreclosure Alternatives) program to assist and create guidelines for lenders and owners facing this situation. HAFA was launched April 5, 2010 and will remain in effect until December 31, 2012. While HAFA is an extension of the HAMP (Home Affordable Modification Program) it isn’t honored by all lending institutions. Its purpose is to offer incentives for home owners to do a short sale versus a foreclosure. This includes $3000 for home owners to cooperate as well as funds for lenders for participating and not proceeding with foreclosure. Not all properties or owners qualify and each property is applied for on an individual basis. Most of the major banking institutions participate but occasionally a loan will be held by an investor and is serviced by a major bank that will not cooperate. Talk to an experienced short sale broker to get a very thorough understanding of the guidelines. This is a government program and it has several caveats so experience provides for a much smoother process. HAFA’s major accolade is the timeline guarantees, which are 10 days from submission and its guarantee for home owners that no future deficiencies are outstanding. This is a huge improvement over some institutions response times and risks associated with short sales. There are complications with HAFA, but overall the experience seems to be better than without it. Several short sales are done without negotiation on future deficiencies which is very unfortunate. Even without HAFA, deficiencies can be released in full and protect property owners but most individuals do not realize deficiencies can be pursued for up to six years and miss the opportunity to negotiate with the short sale. HAFA minimizes this risk and a great real estate broker and attorney can eliminate it even without HAFA. This is one time using professionals will pay off for years to come. A growing market of scam artists is offering modifications and short sale negotiations for home owners. Unfortunately most of these produce no result and can cause great harm to people already under financial duress. The website below references free loan counselors approved by HUD. All modifications are free with the banks as well; no one should pay for this service. More information can be found at MakingHomeAffordable.gov including loan lookup and information on modifications. This should be any home owners first stop for help. Mountain REO is a branch of Mountain Real Estate Companies with locations both in Eden and Ogden, Utah and has successfully negotiated several short sales for its clients protecting them from future liability risks by working with a team of attorneys, credit repair specialists and accountants. Mountain REO offers services across Northern Utah including Ogden Valley, Park City, Sundance, as well as Salt Lake, Davis, Weber, Utah, Morgan, and Box Elder Counties, protecting home owners while helping lenders and investors with asset protection. Visit us online at www.Mountain-REO.com or call 801-745-8400. Slowing U.S. Economic Growth Will Impact Weber County’s Small Businesses The U.S. unemployment rate was unchanged call later this year or early in 2011. The NBER to greater income creation and stronger retail Highlights • The Zions Bank Small Business Index for Utah was 106.9 in July 2010, down from a revised 107.1 in June 2010. • Utah’s unemployment rate was estimated at 7.2% in the latest month, down from the 7.3% rate of the prior month. Total Utah employment grew an estimated 12,200 jobs during the past 12 months. • Weber County experienced a decrease of 1,500 jobs (-1.6%) from a year ago. Joblessness registered 7.9%, unchanged from the 7.9% unemployment rate one year ago. • Slowing U.S. economic growth will place a damper on Utah’s small business sector. • The U.S. economy lost an estimated 131,000 net jobs in July, worse than expectations of a 90,000 job decline. The loss of 143,000 temporary Census jobs was the culprit, with private businesses adding 71,000 jobs during the month. June job data was revised to show 96,000 additional lost jobs. The U.S. unemployment rate remained at 9.5% in July, as more than 180,000 people left the labor force. Slowing U.S. Economic Growth Won’t Help GDP, or Gross Domestic Product, is an estimate of the value of all goods produced and services provided inside U.S. borders, measured as an annual growth rate or annual rate of decline, with the impact of inflation removed. The U.S. economy grew at a 2.4% real (after inflation) annual rate during 2010’s second quarter, just slightly less than expected. In addition, all of the U.S. economic data of the past three years was revised, in some cases for the fifth time, to more accurately reflect what is happening in the American economy. Revised data suggests the recession was actually worse than previously thought. In addition, the U.S. economic recovery of roughly the past year has been a little weaker than originally suggested by government estimates. What many refer to as the “Great Recession” has been over for about a year, according to a majority of forecasting economists. The actual scorekeeper for the U.S. economy, the Business Cycle Dating Committee of the National Bureau of Economic Research, is likely to make that previously announced that the recession officially began in December 2007. Weaker U.S. economic growth suggests Utah’s small business sector will be impacted somewhat negatively. The performance of the U.S. economy is a component of the Small Business Index, as is the performance of the regional and global economies. The Zions Bank Small Business Index for Utah was 106.9 during July 2010, down from a revised 107.1 during June 2010. The Index measures business conditions from the viewpoint of the Utah small business owner or manager. A lower Index number is associated with less favorable business conditions for Utah’s small businesses. The Index uses 100.0 for calendar year 1997 as its base year. The Index includes revisions to various historical and new forecast components as they become available. Utah Employment The Utah unemployment rate—the most heavily weighted component of the Zions Bank Small Business Index for Utah—was estimated at 7.2% in the latest month, down from 7.3% during the prior month. The 7.2% rate compares to a 6.8% rate during the same month one year ago. A lower Utah unemployment rate is a negative contributor to the Index as it implies decreased access to Utah labor. Utah’s unemployment rate averaged 6.6% during 2009, 3.7% in 2008, 2.8% in 2007, and 3.0% in 2006. These rates compare to an average Utah unemployment rate of 5.0% during the 2001 to 2005 period, and an average 3.5% rate between 1995 and 2000. Total Utah employment grew by an estimated 12,200 jobs (up 1.0%) over the past 12 months. This decrease compares to a revised gain of 7,700 jobs in the prior year-over-year period. Utah lost 60,700 jobs in 2009, lost 800 jobs in 2008, and added 49,600 jobs in 2007, 55,700 jobs in 2006, 43,700 jobs in 2005, and 30,200 jobs in 2004. These totals compare to gains averaging 38,000 new jobs annually during the 1994-2000 period and a net loss of 1,300 jobs in 2001 through 2003. More recently, job gains, leading spending, have a positive impact upon Utah’s small businesses…and therefore, the Index. Local Performance Weber County experienced a decrease of 1,500 jobs (-1.6%) from a year ago. Joblessness registered 7.9%, unchanged from the 7.9% unemployment rate one year ago. Davis County payrolls increased by 1,000 jobs (1.0%) in the past year. The unemployment rate was 6.5% in the latest month, up from 6.1% one year ago. Cache County employment rose by 100 jobs (0.3%) in the latest 12-month period. The area’s jobless rate was 5.0%, unchanged from the 5.0% rate of one year ago. Salt Lake County employment rose by 2,400 jobs (0.4%) over the year. The county’s unemployment rate was 6.7% in the latest month, up from 6.5% last year. Utah County employment declined by 1,200 jobs (-0.7%) over the last 12 months. The area’s jobless rate was 6.8%, up from the 6.2% rate of one year ago. Washington County payrolls declined by 1,400 jobs (-2.9%) in the past year. The unemployment rate was 9.3% in the latest month, up from 9.1% one year ago. National Employment The U.S. Department of Labor reported a net loss of 131,000 jobs in July 2010, worse than economists’ expectations. However, the loss of 143,000 temporary Census jobs, as expected, was the primary reason for the decline. The rise of 71,000 jobs in the private sector was less than the 90,000 gain expected. June job data was revised to show 96,000 additional lost jobs. at 9.5% in July, matching the lowest level of the past 12 months. However, the decline resulted primarily from more than 180,000 people—presumably less optimistic about finding a job— leaving the labor force. The current 9.5% jobless rate compares to the 9.4% rate of one year ago and greatly exceeds the 5.8% rate of July 2008. Goods-producing employment rose by 33,000 jobs in July. Manufacturing employment rose by 36,000 positions, while construction lost 11,000 jobs. Mining and logging employment rose by 8,000 jobs. Private-sector service-providing employment rose in July by 38,000 positions. The professional & business services sector lost 13,000 jobs, while the leisure & hospitality sector added 6,000 jobs. The education & health services sector added 30,000 positions in July. Overall government employment fell by 202,000 jobs during the month. The U.S. economy suffered a net decline of 3.6 million jobs during 2008, the worst year since 1945. The loss of 4.8 million jobs during 2009 easily surpassed the 2008 total. The net decline of 8.4 million jobs is a painful contrast to the average gain of 1.9 million net new jobs annually during 2005 to 2007. Excluding the impact of Census and other government jobs, the economy has now added an estimated 630,000 net new jobs this year. An estimated 196,000 additional Census jobs will be ended in coming months, suggesting weak “headline” employment totals into the Fall. The August 2010 Zions Bank Small Business Index for Utah will be released on September 7, 2010. Additional information is available at <www.zionsbank.com> LETTER TO EDITOR cont. from page 2 The “oil spill” card was played. The 2009 movie “Knowing” featured the Gulf of Mexico oil spill exactly one year ahead. Halliburton purchased an oil clean-up company weeks ahead; Transocean insured the rig at double its value; Goldman Sachs “shorted” oil-related stocks in the Gulf of Mexico just days ahead. Methane/oil is produced from organic material under heat and pressure in the presence of water. Either trees and animals once lived six miles beneath the surface, or Genesis 1:7 is true. Personally, I think BP is spewing the methane past their vocal cords. Howard Ratcliffe Huntsville brew has been added to the methane/oil at the start of hurricane season. U.S. NORTHCOM and FEMA are planning military operations for the evacuation of millions of people from Florida and other Gulf States as the toxic brew enters the Gulf Stream and heads for the Everglades, the U.S. East Coast, and soon the Grand Banks fisheries. The Bakken Formation in Montana/South Dakota, ANWR and shallow sites in the Gulf of Mexico all have billions of barrels of oil, so why did this disaster happen? 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