My client lives in a house that is no longer worth what she paid for it. Like  many Americans, she bought her home when the market was high, her family has grown and she needs a larger house. She is able to make her payments but her house is worth less so if she did sell she would be facing a short sale. Her credit for 3 years would be affected, so she would be unable to buy now.

We have discussed all sorts of methods and choices. Once choice is that she has a relative who has a small mortgage on her home with alot of equity. If that relative sold her home and they moved to a new home together then they would be able to purchase. That would still mean doing a short sale on her current home or choosing to rent it out.

You may have guessed it! Yes, that other person is her elderly mother! We discussed them finding a larger home for all of them. That got me to thinking, what about all of those people in similar circumstances with NO RELATIVES that could help like this?

Households are changing and many families now tend to live together for extended periods. Also, as the population ages, caring for senior family members has become an issue in many households, and nursing homes are not always the answer. If you’re one of the many adults considering having their elderly parents or other family members move in with them, consider the value of in-law apartments.

 For many families, a successful living arrangement depends on being able to provide separate, private living space for the parent or adult child, and in-law apartments do just that. Buying a home already furnished with a separate apartment may not be feasible for you, but that doesn’t mean an in-law apartment is out of reach.

 Whether converting existing space or adding on to your new home, a good bank or mortgage company can help.

 If you are looking to purchase a new home, a bank can help you to finance both the purchase of your home and all your renovations with just one loan.

Wells Fargo Bank Web Site says the advantage of their loan is:

• More Money — the amount of money you are permitted to borrow for the purchase and renovations is based on the increased value of the home after improvements are made.

• Lower Monthly Payments — your renovation costs are spread throughout the entire term of the loan – so your monthly payments may be lower than other financing options.

• Tax Deductibility — the interest on the cost of your improvements, included in your mortgage, may be tax deductible.*

• Speed — start making improvements immediately after closing. No need to wait for that modern kitchen or new roof. And, no need to pass up a house that’s in the ideal location but needs improvement.

• Simplicity — One application, one set of fees and closing costs, one closing to attend and one payment each month.

If you already own a home, the Refinance and Renovate^SM Loan may be the right option for you. This loan can help you to simultaneously refinance your mortgage, possibly obtain a lower monthly mortgage payment and get the money you need to renovate – all in one transaction.

The Refinance & Renovate^SM Loan offers:

• More Money for Improvements — the amount of money you can borrow is based on the increased value of your home after improvements are made

• Lower Monthly Payments — the interest rate on a Refinance and Renovate Loan will typically be lower than the combined interest you would pay on a first mortgage plus a home improvement loan

• Tax Deductibility — Financing your improvements into one mortgage may provide a greater deduction than some home equity loans. Credit card debt and many other bank loans are not deductible at all.*

• Speed — start making improvements immediately after closing

• Simplicity — One application, one set of fees and closing costs, one closing to attend and one payment each month

If you need a referral to a Wells Fargo representative, please let me know. I have a wonderful contact with whom I have done business for many years….

Zoning and Insurance
While in-law apartments are a great choice for many families, there are still some issues you should consider before making a decision. Make sure you check the zoning ordinances in your community. In some areas, adding an in-law apartment to a single family home can change its property category to a duplex, especially if there is a separate entrance. Also, check with your insurance company to see if any extra home insurance may be required.

WASHINGTON (AP) — The Obama administration may turn thousands of government-owned foreclosures into rental properties to help boost falling home prices.

The Federal Housing Finance Agency said Wednesday it is seeking input from investors on how to rent homes owned by government-controlled mortgage companies Fannie Mae and Freddie Mac and the Federal Housing Administration.

The U.S. government rescued Fannie and Freddie in September 2008 and has funded them since the financial crisis. The mortgage giants own or guarantee about half of the nation’s mortgages and nearly all new mortgages.

At the end of last month, the government owned roughly 248,000 foreclosed homes, officials said. About 70,000 of those are listed for sale. But officials expect the number of foreclosures to soar in the coming months.

Many foreclosures have been stalled so attorneys general and federal regulators can investigate whether lenders cut corners and improperly handled thousands of cases. Once a settlement is finalized, foreclosures are expected to pick up again and further depress home prices.

Converting the homes into rentals may reduce “credit losses and help stabilize neighborhoods and home values,” said Edward DeMarco, acting director of the Federal Housing Finance Agency, which oversees Fannie and Freddie.

Homes in foreclosure sell at a 20 percent discount on average, which can hurt prices of surrounding homes.

It also might meet the growing demand for rentals. Since the housing meltdown, nearly 3 million households have become renters. At least 3 million more are expected by 2015, according to census data analyzed by Harvard’s Joint Center for Housing Studies and The Associated Press.

A federal “request for information” released Wednesday included an option for previous homeowners to rent out the homes or for current renters to lease to own. Private investors could also be allowed to manage the rental properties.

Officials are also mulling whether to only implement the program in areas hit hardest by foreclosures and in those with high demand for rental housing, such as Arizona and Florida.

The homes include single-family homes and condominiums. The deadline for responses is Sept. 15.

Notice of Default filings fell in May 2011 with a 4.0 percent drop resulting in the fewest foreclosure starts since October 2008 when SB 1137 resulted in a temporary halt in the Notice of Default process. More foreclosures were scheduled for sale at the courthouse steps in May with Notice of Trustee Sale filings up 16.6 percent from April, the first month-over-month increase this year. Notice of Trustee sales remain down year-over-year off by 9.0 percent. Cancellations of foreclosure sales dropped 24.3 percent compared to April after jumping 27.0 percent from March. Foreclosure sales on the courthouse steps were up from the prior month, with 3.4 percent more sales Back to Bank and a 4.1 percent increase in foreclosed properties Sold to 3rd Parties. The average Time to Foreclose continued a steady climb, increasing 10.3 percent to a new record of 344 days.

Third parties are reselling inventory more quickly, with the Time to Resell down 7.6 percent month-over-month to 134 days, the fewest number of days since September 2010 — likely due in part to a lack of inventory throughout much of California.

The California Association of Realtors www.car.org (CAR) reports that the total share of all distressed property types sold statewide declined to 48 percent last month. That’s down from 51 percent in March and 49 percent in April 2010.

The total share of  BANK OWNED REO sales was 28 percent in April, compared to 31 percent in March and 30 percent in April 2010. The statewide share of short sales also dropped in April to 19 percent, down from 20 percent in March but unchanged from April 2010.

Sales of non-distressed properties increased during April. The buyers were not only  bargain hunters and investors, but also homebuyers who are timing their buying decisions to coincide with the start of the spring home-buying season.

Non-distressed properties made up 52 percent of the total sales volume in April, up from 49 percent in March and 51 percent in April 2010.

Pending home sales – a precursor of sales to come in the months ahead – declined between March and April, according to CAR’s index which is generated from a survey of more than 70 associations of Realtors and multiple listing services (MLSs) throughout the state.

The index registered a reading of 114.3 based on contracts signed in April, down 11 percent from March’s revised index of 128.4. The index was down 19.2 percent from April 2010 when housing tax credits contributed to home sales.

CAR, headquartered in Los Angeles, is one of the largest state trade organizations in the United States with more than 160,000 members.

There are some one story homes both 2 and 3 bedroom either about 960 square feet of living space or just close to 1060. The exact number would be found at the tax assessor’s office.

There are both 3 and 4 bedroom townhomes here also. The 4 bedrooms have one bedroom downstairs with a 3/4 bath. They range in living space of 1466 square feet  – 1500 + .

Association dues are about $205-$210 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.

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!

The first loan was approved by the lender, and in this approval the seller is receiving $3000 towards relocation costs when the sale is finalized; in California we say when it closes escrow. So, I then proceed to get approval of this sale from both 2nd and third lien holders.

Unfortunately both 1st  land 2nd liens or lenders have to approve and agree on the terms and the dollar amounts. In this case, the credit union is not allowing the seller to receive any funds at all. If they do not agree, this property will go to foreclosure, and the second loan will receive NO MONEY at all. Neither will the HOA.

I take my work very seriously and I am very honest with all involved – my seller, the buyer, other agents, all lenders. We need to prevent another property from becoming distressed, run down condition, vandalized.  By offering the sellers financial aid in selling, they are maintaining the homes until the buyer takes possession. This particular home is being very well maintained by the seller and due to the regulations or rules of this credit union, it will go to foreclosure.

I think that is a pity.

Again, that is just MY opinion! What do you think?

More specifically, I have been reading and participating in the blog entitled “Bank of America Short Sales”. I found this web site quite by accident. One day I decided to google “Bank of America” help……

Google found many articles for me and this is the best one yet. Basically, anyone with a question can post their issue and any other broker can log in and post a reply. It has given me valuable phone numbers to the office of

the President of Bank of America and more. It has helped me in working on my own short sale assignments  / listings. If you are a home owner and are aware of the difficulties your agent / broker may be facing, just

have her/him go to this site. There is lots of help there. Agents from across the country are more than willing to help each other. Good luck!

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.

The only significant increases from the prior year in ForeclosureRadar’s report were cancellations, up 141.3 percent, and time-to-foreclose, up 30.5 percent from May 2009. The company says it now takes lenders 235 days to complete a foreclosure in California, from the filing of the default notice to the auctioning of the property.

While extended foreclosure timelines may be skewing resolution numbers, it should be noted that newly initiated foreclosures declined significantly last month in California.

Notices of default filed against delinquent homeowners – the first step in the foreclosure process – fell 17.25 percent from April to May, according to ForeclosureRadar’s market data. They were down 43.34 percent compared to May 2009.

Notice of trustee sale filings, which serve as the homeowner’s final notice before the home is auctioned, dropped 11.88 percent on a month-to-month basis in May, and were 35.78 percent below year-ago levels.

ForeclosureRadar reports that banks took back 13,775 properties in May, 5.75 percent fewer than they did in April.

The company puts California’s total REO inventory at 87,964 homes, down from 90,000 in April and 18 percent lower than it was a year ago.