The Obama administration will wait until 2011 to propose an overhaul of mortgage giants Fannie Mae and Freddie Mac, Treasury Secretary Timothy Geithner said Wednesday, arguing that he wanted to put some distance between a new system and what he called “the worst housing crisis in generations.”

Fannie Mae and Freddie Mac are vital players in the mortgage industry, purchasing home loans from lenders and selling them to investors. They own or guarantee about half of all residential mortgages. Had they gone broke in 2008, millions of people would have been unable to get mortgages.

from the AP

Like many people, Terry Hoskins has had troubles with his bank. But his solution to foreclosure might be unique. Hoskins said he’s been in a struggle with RiverHills Bank over his Clermont County home for nearly a decade, a struggle that was coming to an end as the bank began foreclosure proceedings on his $350,000 home.

“When I see I owe $160,000 on a home valued at $350,000, and someone decides they want to take it – no, I wasn’t going to stand for that, so I took it down,” Hoskins said.

Hoskins said he’d gotten a $170,000 offer from someone to pay off the house, but the bank refused, saying they could get more from selling it in foreclosure.

Hoskins said that he issued the bank an ultimatum. “I’ll tear it down before I let you take it,” Hoskins told them. And that’s exactly what Hoskins did.

From the AP

A funny story from the Seattle Times: A wealthy Icelandic couple is being sued for installing a cheap IKEA kitchen into an apartment they rented out at a swank hotel in New York City.

The lawsuit filed in Manhattan Wednesday alleges that Jon Asgeir Johannesson and his wife installed an “ugly” kitchen from the low-cost household furnishings store into the 16th-floor apartment at the Gramercy Park Hotel.

The lawsuit filed on behalf of the Paramount Realty Group of America Corp. claims the couple rented the apartment out for about $300,000, then failed to make promised renovations on time.

When they did, the lawsuit claims the kitchen was unsuitable for such a luxurious home.

Meet experts in every home improvement field, connect with contractors and builders, and see all that is new in fixtures, design, decor and the latest products. Show runs through Feb 28th.

The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.

The IRS clarification says: “In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

Additional dates are being added to our seminar schedule, located under the ‘Buyers’ tab on the homepage. Check back often for updated dates and locations near you.

The quick answer is this: more than you think.
The harsh fact is that you usually must have both saved and invested more than you believed you’d require in a variety of stocks, bonds, funds, metals and other commodities, in order to lead a comfortable life in retirement.

How much should you save now? The right answer for you depends on your age and your family circumstances. But here’s a plan that states the bare minimum: Add up your savings of all kinds. If you’re 40 or younger, you should be saving or investing at least 5% of your pretax pay every year. If you’re between 40 and 45, you should step up your saving by at least 10% a year. After age 45, put away 10% a year.

MarketWatch

…get ready for paperwork. Have your bank statements, W-2 wage and tax statements, and pay stubs organized. Overdocumentation is the name of the game right now. Having all the documents upfront will speed the application process.

Check your credit score. The most widely used score is the FICO, which ranges from 300 to 850. Your score, based on information in your credit report, helps lenders predict how likely you are to make your payments on time. The higher the number, the better the chance you’ll be approved for a loan at a low interest rate. Clean up your credit score. Catch up on any late payments and pay off or pay down your debt.

It’s critical that you have a down payment because lenders want to see that you have skin in the game. Mortgages insured by the Federal Housing Administration require a 3.5% down payment, which can come from a family member, employer or charitable organization as a gift. For a non-FHA-insured loan, lenders are requiring a 10% down payment.

The thrifty little sister of Crate and Barrel, CB2 is the go-to online design emporium for apartment dwellers and first-time homeowners. Platform beds and steel shelving abound, with some fun modern lighting fixtures thrown in. An eco-friendly river runs through the entire line with many sustainable materials.

Not to miss: Bamboo towels for a great price in colors so vivid no one will know they’re “green.”

Try corn gluten meal on weedy garden paths. Corn gluten meal, a yellow powder or pellet, is used in livestock feed but it also is an organic “pre-emergent” weed control. You’ll find it in garden supply or agricultural supply stores. Spread it on garden paths or beds where you do not want seeds to take root. Read label directions for correct application. Corn gluten meal stops seeds from forming roots when they are germinating. It also contains nitrogen that feeds the established plants in your garden. Apply it early in the season: If you wait until weeds have sprouted, it will be ineffective. Avoid using it on beds where you have seeded ornamentals or where you are counting on plants to self-seed from last year.