Pepperwood Village Townhomes located near Disneyland Resort, Anaheim, CA
March 9, 2011 By 1 Comment
Association dues are about $205-$2
10 per different homeowners. There is a clubhouse, children’s playground area, association pool. This complex is close to bus lines, shopping, the Disneyland Resort, and FREEWAYS.
Downsizing and Saving Money – Good Trend
July 17, 2010 By Leave a Comment
Do you want to DECREASE your living expenses?
Do you want to own your own condo or house at a low price, low payment and still be able to be financially secure?
I remember many years ago when we bought our first house; sold it at a profit 8 years later, bought up again, and again. Made some profit for sure; isn’t that what we were supposed to do?
My husband and I also continued to buy “stuff”, because with a bigger house, you need to buy more things to fill it. It also meant buying two cars, commuting to work, etc. Many of us only realize after we buy the big house and the closets of clothing and toys that we have too much stuff and too many financial obligations. Unwinding ourselves from the financial burdens of a big house payment or car lease can be difficult, especially in this economy.
Therefore I have been noticing some changes not only in my family and friends but clients as well who want to downsize. How does one do that?
Make small changes little by little, not all at once. Do not discard all everything at once.
Think about what you want, not what you think you’re supposed to want. Do not care about the Joneses. We used to want to be like the Joneses, and that only got many of us into debt. Live below your means because you want to.
Save your money. Even if you earn little interest, at least you saved it.
Depend on spending as little as possible weekly so it is considered a fixed expense. The rest is yours to do whatever you want to do with it – save in savings account, and so on.
You will have less debt, perhaps live in a smaller home or condo and have less obligations. No doubt, you will be happier!
Renovation Lending: FHA 203K
June 18, 2010 By Leave a Comment
I learned more about this program when I was in Dallas. This program was offered to all of the brokers. Some chose to study other subjects. However, it is my opinion that we really need to KNOW how to use this loan because of the type of property we need to finance.
You see, when the typical buyer wants to buy a property – house or condo – it is usually in decent condition. It is not trashed. Unfortunately however, many of the bank owned properties are in bad condition for one reason or another. No one wants to buy a property that needs alot of money to repair it unless you can pay very little for it. An entry level buyer is forced out of the market to a cash investor buyer.
The question arises: Who will finance this property? The FHA 203 K program offers a solution. This loan will finance new paint, new carpet, appliances, windows, kitchen, roof and more. The repairs are financed into the new loan. The property is appraised as if it were repaired. Therefore if you find a property that has no kitchen or no bath and you want to buy it, YOU CAN get a loan. Therefore, when you visit a house for sale and want to make an offer, the term “All repairs to be in buyers’ loan” should be in your contract offer. This is a great program, and I continue to work towards obtaining my certification. I do not do loans but I really think every broker should know how they work so that we could all be of best service to our clients who need us.
Buying and Selling with Contingencies: Can be Frustrating…
March 5, 2010 By Leave a Comment
This article appears on the CAR.org web site,which is the California Association of Realtors Site. I thought it might be of interest.
Buyers: What you should know before buying a home….
January 18, 2010 By Leave a Comment
Home Buyer Program Extended……
November 8, 2009 By Leave a Comment
Great News! The Federal Government DID extend the federal tax credit through April 30, 2010,
with a 60-day extension if a binding contract is in place before the deadline. First-time homebuyers will continue to be
eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500.
To qualify for the $6,500 credit, existing homeowners must have lived in their current homes for at least five years.
The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to
$125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.
Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009
income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home
remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
Nationwide, more than 1.4 million first-time home buyers were given the chance to become homeowners as a result of the Federal Tax Credit for
First-time Home Buyers. It is expected that number to increase dramatically in the months ahead with this new legislation in place.
First Time Buyers: Start House Hunting Now!
August 21, 2009 By Leave a Comment
Start house-hunting now to qualify for tax credit for first-time
home buyers
First-time homebuyers-those who have not owned a home for at
least three years-may be eligible for the $8,000 federal tax
credit, but the window of opportunity is closing rapidly.
To qualify for the credit, the buyer must close escrow by midnight
on Nov. 30, when the tax credit expires. Buyers hoping to take
advantage of this benefit are advised to start house-hunting
early, as the buying and lending processes takes time.
MAKING SENSE OF THE STORY FOR CONSUMERS
I really think that since finding the right house can take some time, so I reaally believe that home buyers should start the process when they think they are able and ready to buy. Buyers also should allow for more time in getting their mortgage loan since that process is taking about two weeks longer to process this year compared to last year.
The tax credit is equal to 10 percent of the purchase price, up
to $8,000, subject to income limits. Single taxpayers are
eligible if their modified adjusted gross income is $75,000 or
less, while married taxpayers filing jointly must have a
modified adjusted gross income of $150,000 or less.
In order to qualify, you must live in the property. Vacation homes and investment homes do not qualify. Houseboats do qualify as do manufactured homes.
The seller cannot be related to the buyer in any way.
Married people filing as such cannot claim the credit if either
spouse has owned a primary residence within the last three
years. However, unmarried joint purchasers may allocate the
credit in any way they see fit, as long as it does not exceed
the $8,000 maximum.
The government will allow those who finance their purchases with
a federally insured loan to apply their anticipated credit
immediately toward closing costs or as additional down payment,
rather than waiting until they file their 2009 taxes to receive
the refund.
CREDIT REPAIR
August 16, 2009 By Leave a Comment
Did you know how a bad credit score can hurt your employment?
Did you know that companies and employers check individual credit reports before hiring a worker. Yes, it’s not just about good academic grades and training. Your credit status can also make or break your future in a respected company.
This applies to executive job levels and regular jobs now require good credit. More employers today screen their applicants based on their credit history. Statistics show a 55% increase in the number of employers who inquire credit reports.
Can a bad credit score really affect your reputation? Apparently, a history of unpaid charges, late payments or too many credit cards with existing balances can send negative impressive to prospective employers.
With so many people looking for a job, it may be difficult to compete with others who can present good grades, college diploma and a high credit score. Having a good credit rating would surely give you the advantage you need over other job applicants.
Think about this, if you were the owner or the manager of a company, would you be confident to hire a person with bad credit? Or would you question the new hire’s sense of responsibility, the reason why this person seems to have problems in managing his own finances? Would you be confident to entrust company tasks to someone who doesn’t seem capable of handling repayment obligations to creditors. So you see, building an early credit history and maintaining a good credit standing can make a big difference in your search for employment. By the time you need to get a car loan, a mortgage or a credit card, a solid credit history can give you the break you need.
What is a Short Sale?
August 15, 2009 By Leave a Comment
Simply put, the property is legally owned by a person or corporation and is often occupied by an owner or tenant or it could be vacant. However, the owner owes more on the property than what it is worth, therefore the bank or lender needs to approve the sale since the lender stands to lose money.
Paperwork / Rules for Offer Submission: A standard purchase and sale agreement is used along with an addendum acknowledging the fact that this is a short-sale transaction.
The asking price can be whatever the homeowner chooses since they still own the property. The seller might be pricing it low to encourage multiple offers, might have it high to try to recoup as much money as possible or it might be priced correctly. In most cases the lender has not approved a sale at the list price so a Buyer doesn’t know if his offer even at list price will be accepted. The buyer should perform their own market analysis and make an offer close to that. Submission of the market analysis to the listing broker at the time of offer may also be a good idea.
While it might be nice to have repairs made, the seller certainly doesn’t have the resources to make them and the lender is very unlikely to do so since they don’t own the property. So an “as-is” sale is the best and most likely to be successful. This makes trying to buy a short-sale property that needs repairs using conventional or FHA financing challenging at best and an exercise in futility at worst. This also contributes to the low success rate of completing a short-sale transaction.
Buyer should give a check to escrow after the offer is accepted. A Buyer can be flexible with this unlike a Bank REO situation. The Buyer should also supply proof of funds for down payment and pre-approval from the lender for any new loan to make your offer stronger.
Closing can occur within 30 days but the 30 day clock will not start until the lender gives their approval – see below.
What is the time frame in this scenario? Initially this type of offer is handled like it would in a non-short-sale situation. The listing broker will present it to the seller but once they approve it, it will be forwarded on to the lender for their approval. At that point the listing broker has no control over the process and is in a wait and see mode like the Buyer.
This approval process may take one week or it may take up to three months. One thing to keep in mind is that while all parties are waiting for an approval of the offer another department of the lender/bank is working on the foreclosure and may actually foreclose on the property with offers in for approval.
If that happens, the deal is dead and the listing terminated as the former seller is no longer the owner of the property and does not have authority to sell. If that happens and the Buyer is still interested in purchasing the property work with your broker to follow-up on the property as it will come back to market with a different listing broker and usually a different listing price.
In addition to brokers, a short-sale negotiator may be involved who attempts to negotiate with lenders on behalf of the buyer and seller. By having experience working with lenders the hope is that they will be more successful than the inexperienced seller going it alone. It has proven to be somewhat effective but there is also a fee involved. It is a contingent fee that typically runs in the $2,000-$5,000 range and it is expected that the buyer pays this fee if they are successful. If the seller is using a negotiator it should be disclosed in the listing description so if you don’t see it, ask the question to avoid a surprise down the road. You really need patience.
What is an REO?
August 15, 2009 By Leave a Comment
Did you know that the bank or servicer will own the property in this scenario?
Your real estate agent or broker will negotiate this purchase for the buyer between a bank employee instead of an owner/seller).
Paperwork/Rules for Offer Submission: Standard purchase and sale agreements are used as well as the banks’ own addendums and disclosures. Offers must be complete and filled out in accordance with the banks’ rules in order for the buyer’s offer to be considered. These offers are either delayed until corrected or rejected by the bank regardless of the price being offered. Any delay on a desirable property severely limits your chances of getting your offer accepted.
The bank orders an appraisal or a BROKR PRICE OPINION. Then at the time of foreclosure/listing they have the listing broker determine if that value is still valid. Most of the time the Bank is pricing near market and is expecting to transact the property close to the asking price. If you feel the asking price is well over market it is best for the buyer to perform your own market analysis (something your agent or broker can do) and provide that information to the listing broker along with the offer. Stories, letters, opinions etc that are not supported by facts are of no value and cannot be used by the listing agent to help your offer. Many times the listing agent is working within a system where all they do is go online and fill in a few boxes – price, loan type, down payment, close date, indicate if the earnest money is in cashier form or not and if there is a preapproval. The lender never has the opportunity to see additional paperwork nor do they care. But if the market analysis is done well, the listing broker might be able to use that to justify a lower price thereby making your offer acceptable.
Repairs: The Bank prefers not to make repairs so an “as-is” sale is best. If a few repairs need to be made to facilitate FHA or Conventional financing the Bank might be willing to accommodate that so it is certainly ok to ask for. It’s best for supporting bids for the repairs to accompany the offer so the Bank knows the buyer is not just making numbers up. Often times the house will be a fixer or in a condition such that traditional lenders will not lend on the property. In those cases, an all cash offer or possibly a construction loan are necessary to get the deal done. The bank does not like to consider FHA offers since many of these properties will not qualify, and the bank may prefer all cash offers.
Earnest Money: It will need to be in the form of a cashier’s check (not a note). Proof of funds for the down payment and loan approval for the balance will also need to accompany the offer.
Closing Date: A short escrow closing is favorable. Many institutions are beginning to have penalties for closings that run beyond some date so make sure your lender can perform in that time frame. If there is any doubt you either need a different lender or need to have the lender agree to cover those late fees if they don’t perform timely.
In all cases, the listing broker does not have any control over the response time no matter what timeframe you put in the offer for acceptance. The best approach is to ask the listing broker for an approximate length of time needed for response and use that in your offer. If the offer is for far less then the asking price do not be surprised if the response is an outright rejection. Banks are trying to maximize their returns and are not looking to give properties away. They are also usually unwilling to go through multiple counter offers and if they feel the potential buyer is trying to “steal” the deal they will not try to negotiate. If the offer is a solid offer (close to asking, few contingencies) it may get accepted without a counter.
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