Archive for November, 2008
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November 30th, 2008 categories: Buyer's Advice, Seller's Advice
Home Buyer Service from Patrick Canavan
Below are two links to information about a service I provide my home buyers. Please review it and register for a free account. If you have any questions, I can assist you in setting up the account and refining your criteria.
If you decide to work with me as your agent, I can upgrade the account so you’ll receive additional information like area sales, price histories, tax values, and other information not available to the general public.
- Search on your own personal web site just like I do!
- Make an informed decision using the most efficient, effective, and satisfying home buyer search available
- Easily access interactive maps, loan data, school info, photos, virtual tours, and property details for any property in the market.
- Rate properties, whether favorites or rejects, save valuable time instead of constantly sifting through properties
- Make personal notes on properties to easily remember important details
- Stay on top of important information matching your criteria. New listings, open houses, and price changes are always delivered to you in your Morning updates.
- Find out who area agents use for home related services. Get the inside scoop on the top mortgage lenders, attorneys, home inspectors, insurance agents, and others in more than 50 categories!
- My expertise is only a click away using easy messaging or interactive notes.
Click the link below to view Buying a Home information:
Enter Your Dream Home
or
Search Like a Realtor see what we see
Sincerely,
Patrick Canavan
Realtor / EcoBroker
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Market Matters
November 20th, 2008 categories: Buyer's Advice, Seller's Advice
REALTORS® throughout the state have a long-standing tradition of community involvement and making a difference in the neighborhoods they serve. The recent wildfires throughout Southern California have devastated many families and caused a great deal of property damage in many Southern California communities. C.A.R. has compiled information in the REALTORS® Care section of car.org. There, REALTORS® and consumers will find a list of resources, including what to do and who to contact after a fire or other natural disaster, as well as insurance-related information.
For a complete list of fire-related resources, please visit:
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
has created consumer information sheets detailing the various mortgage modification programs available through the larger lenders and government entities, and also has created an easy-to-use reference chart about available programs.
• The consumer sheets contain information such as eligibility requirements; who to contact to apply; costs associated with the program; and other vital data. In general, the loan modification programs on the chart and consumer information sheets are intended for primary residences only.
• Mortgage loan modifications typically are handled on a case-by-case basis. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available: loan number; income information and documentation; most recent mortgage statement; bank statements; and a letter demonstrating financial hardship.
To download the mortgage modification sheets, please visit:
What if you don’t qualify?
The majority of the mortgage modification programs from the larger lenders only are available to homeowners who either already are in default or are at risk of defaulting on their primary residences. However, some homeowners, in particular those who may default on a vacation home or an investment property, have some options available.
KEEP THIS IN MIND
• Homeowners who are in default or at-risk of defaulting should contact a reputable credit counseling agency to discuss possible options other than foreclosure. When calling a credit counseling agency, the homeowner should have their loan number, most recent mortgage statement, bank statements and a letter demonstrating financial hardship.
To find a credit counselor, visit the U.S. Dept. of Housing and Urban Development’s (HUD) Web site at
or
the nonprofit organization National Foundation for Credit Counseling at
• Homeowners should contact their loan servicer as soon as possible to try to work out potential solutions. According to the Federal Housing Finance Agency (FHFA), some borrowers who do not meet the requirements for an existing mortgage modification program may still be considered for a loan adjustment based on personal circumstances.
• If a mortgage modification is not possible, homeowners may want to consider a short sale — sell the home for less than the amount of the mortgage. Although a short sale enables a homeowner to avoid foreclosure and often causes less damage to the homeowner’s credit score than a foreclosure, the lender must agree to accept the loss and in some cases the homeowner may have to pay taxes on the difference. Also, many lenders are overwhelmed by the large number of short sales being submitted by homeowners, so it could take longer than usual to receive a short-sale acceptance from the lender.
• If a homeowner cannot qualify for a mortgage modification or a short sale, some lenders will consider a deed in lieu of foreclosure, where the homeowner transfers the title to the lender in exchange for debt forgiveness. Properties that have additional debt, such as home equity lines of credit or additional mortgages, may not qualify for a deed in lieu of foreclosure. Homeowners who have additional debt tied to the property must share this information with their lender for consideration when applying for a short sale.
To read the full story, please click here:
HUD Issues New Consumer Protection Rules on Mortgages
The U.S. Dept. of Housing and Urban Development (HUD) has announced updates to the Real Estate Settlement Procedures Act (RESPA), including the requirement of a three-page “good-faith estimate” that provides borrowers with rates, fees, prepayment penalties, and possible increases in monthly payments for every mortgage transaction.
KEEP THIS IN MIND
• The Real Estate Settlement Procedures Act (RESPA) is a 1974 law that sets standards for homepurchase transactions. The purpose of RESPA is to provide consumers with information about the real estate mortgage transaction and the costs associated with it and to prohibit certain practices, such as referral fees between settlement service providers, that often result in higher costs and reduced quality to consumers
• A key change to RESPA is the creation of a standardized good-faith estimate (GFE) — an itemized list of fees and costs associated with a mortgage loan. Currently, there are several good-faith closing estimate forms available, which can make it difficult for borrowers to compare rates and offers. Beginning in 2010, the U.S. Dept. of Housing and Urban Development (HUD) will require all lenders and mortgage brokers to use the standardized form. HUD officials estimate that the change will save home buyers as much as $700 at closing, due in part to a requirement limiting the increase between the good-faith closing cost estimate and actual fees to 10 percent. The new three-page good faith estimate also will outline rates, fees, any prepayment penalties, and the possibility of later increases in monthly payments.
• HUD also has created a new page on the HUD-1 Settlement Statement to help homebuyers better understand what they are being charged at closing and how these charges compare to the GFE issued by their lender. The new GFE is designed to help mitigate future foreclosures by ensuring home buyers thoroughly understand their loan terms. Many housing analysts believe the current number of foreclosures is due to many borrowers making “uninformed decisions” during the homebuying process. The new, standardized GFE and revised HUD-1 will not be required until Jan. 1, 2010.
To read the full story, please click here:
• When searching for a home inspector, consumers should seek recommendations and referrals from their REALTOR®, as well as other recent home buyers. It is recommended that consumers interview at least three potential candidates during this process. Home inspectors are not regulated as closely as other industries; so home buyers should consider choosing one that belongs to the American Society of Home Inspectors. The American Society of Home Inspectors requires its members to complete at least 250 inspections. Consumers also should inquire about fees, and whether the inspector is bonded and insured.
• As credit underwriting guidelines tighten and down payment requirements increase, some home buyers – especially first-time home buyers – are finding it more difficult to qualify for a mortgage loan offered by a traditional financial institution. One viable option for some first-time home buyers, or those with challenged credit, is to apply for a home loan with the Federal Housing Administration (FHA). These loans are mortgages issued by a private lender but insured by the FHA. They often require smaller down payments and offer fixed-rate or adjustable-rate loans. However, not all home buyers will qualify. The FHA requires verification of income and assets along with a full home appraisal. While consumers with credit scores a low as 580 may qualify, home buyers should contact an FHA lender for an accurate assessment of their situation and ability to qualify.
All credit goes to California Assoication of Realtors (C.A.R) for this information.
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Your Chance To Win $250
November 20th, 2008 categories: Buyer's Advice, Seller's Advice
Please Click to Download application form.
We are having a Thank you drawing at the Office for the Orange County Residents here in CA. We have thrown into the Pot along with other prizes a $250 Gift Certificate to the Neighborhood Grocery Store of your Choice.
To enter you will have to download a word document fill it out and Fax or email back to the numbers provided.
If you would like anymore information you can call 714.943.0444 or email me at Info@EnterYourDreamHome.com
If your good with your coupons that is alot of Grocery’s!
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Real Estate Updates
November 13th, 2008 categories: Buyer's Advice, Seller's Advice
This issue of Mortgage Update contains news and updates on foreclosure assistance programs for borrowers with mortgages issued through Citigroup, and mortgages owned or guaranteed by Fannie Mae and Freddie Mac.
KEEP THIS IN MIND
• Citigroup is expanding its foreclosure prevention efforts by establishing a new program, Citi Homeowner Assistance Program, which only is available to homeowners who are current on their mortgage payments, but at risk of defaulting. Citi Homeownership Assistance Program will reduce monthly payments, including property taxes and insurance, to 40 percent or less of the borrower’s income. The mortgage modification program will freeze or reduce interest rates, extend the terms of the loan, and possibly reduce the loan principal.
To read the full story, please click here:
• The Federal Housing Finance Agency (FHFA) this week announced a new government program to help mitigate foreclosures on loans owned or guaranteed by Fannie Mae and Freddie Mac. The program is targeted toward borrowers who are at least 90 days delinquent in their mortgage payments and have a high loan-to-value ratio. Reduced interest rates and longer terms of as much as 40 years may be offered to qualified borrowers. Some economists believe that areas such as California, Florida, and other high-cost areas will benefit the most from the program due to largerdebt loads and higher rates of nontraditional mortgages.
To read the full story, please click here:
The market for homeowners looking to sell Despite declining home values, the market is still providing opportunities to sellers. In September, the median number of days it took to sell a single-family home was 46.1 days, compared with 56.7 days for the same period a year ago. By following a few guidelines sellers can be successful in selling their home.
MAKING SENSE OF THE STORY FOR CONSUMERS
• Accurate pricing continues to be a key factor in selling a home, especially in today’s market. The median home price is expected to decline 31.7 in 2008 in California, according to C.A.R.’s 2009 Housing Market Forecast. Sellers who are expecting to receive offers similar in value to 2005-2006 offers should work with their REALTOR® to ensure that a home is priced accurately and that the current market can support the asking price.
• Pre-housing boom, many homes did not require a lot of marketing. Some homes could be listed on an MLS and sell within days. Today’s market is rapidly changing and the majority of homes for sale require more marketing than in previous cycles. Some sales agents are offering traditional marketing plans such as creating flyers, while others are opting for more elaborate options including catered lunches during an open house for brokers and potential buyers.
• Some economists believe that President-elect Barack Obama will aggressively work to restore the nation’s housing market. Proposals from his administration are likely to include tax credits for firsttime home buyers, more loan modification programs, and reductions in down payments for loans owned or guaranteed by Fannie Mae and Freddie Mac. These proposed changed would enable more home buyers to purchase houses and help reduce the inventory of homes on the market.
• The current market and declining home prices are enabling many home buyers to move up by purchasing homes that previously would have been out of their price range. Some sellers, especially those who are seeking move-up opportunities, are accepting lower offers on their current home due to the reduced amount they are spending on their new home.
To read the full story, please click here:
U.S. conforming loan limit unchanged for 2009: FHFA
The Federal Housing Finance Agency (FHFA) earlier this week announced its 2009 conforming loan limits for mortgages owned or guaranteed by Fannie Mae and Freddie Mac.
KEEP THIS IN MIND
• The FHFA conforming loan limit in many areas of the country will remain at $417,000, unchanged since 2006. Loan limits for high-cost areas, including California, will be capped at $625,500. The “new” limits are a decrease from the previous $729,750 limit, which was established earlier this year by the Economic Stimulus Act of 2008. In California, the new conforming loan limits for metropolitan areas range from $474,950 in the Sacramento-Arden-Arcade-Roseville metropolitan area, covering El Dorado, Placer, Sacramento and Yolo counties; to $625,500 in the Los Angeles-Long Beach-Santa Ana metropolitan area.
• The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or guarantee. Nonconforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan, increasing the monthly payment and negatively impacting affordability for households in California.
• The CALIFORNIA ASSOCIATION OF REALTORS® hopes Congress will make permanent the current $729,750 conforming loan limit before the end of the year as one of the provisions in an economic stimulus package. Last week, the board of directors of the NATIONAL ASSOCIATION OF REALTORS® (NAR) formally signed off on a real estate stimulus proposal, which also supports a permanent increase.
• Many lenders recommend that home buyers who are applying for loans above $625,500, but below $729,750 complete the application process by the end of November. This will help ensure that the loan is processed and funded by the Dec. 31 deadline and that the home buyer does not have to qualify for a jumbo loan at a higher interest rate.
To read the full story, please click here:
The best time to buy a home
Recent economic reports and the continued decline of home prices have caused some home buyers to stay on the sidelines and try to time the market so they can purchase a home at an affordable price that will not reduce in value, and will appreciate quickly. However, many housing advisors recommend that home buyers not try to time the market, but instead purchase a home when they are ready.
KEEP THIS IN MIND
• Despite rising foreclosures, delinquencies, and unemployment rates, and declining home prices, sales of new and existing homes are improving, which is causing some home buyers to try to “time the market.” Many housing analysts advise potential home buyers not to base their homebuying decision on economic reports, but rather to take their time finding the right house and to focus on getting their financing in place.
• Most economists believe that home prices will continue to decline during 2009. C.A.R. predicts that the median home price in California will decline an additional 6 percent next year. Home buyers need to remember that real estate markets are local and prices differ neighborhood to neighborhood. Many REALTORS® advise their clients to visit communities that interest them, and to talk to homeowners, business owners, and financial institutions to become familiar with the area.
• Credit restrictions and loan underwriting standards tightened during the credit crunch, resulting in mortgage loans taking longer to process and fund. Most lenders are requiring more information about income, assets, and expenses than in previous years, so home buyers are advised to get preapproved for their mortgage loan instead of applying once they have identified their ideal home.
To read the full story, please click here:
All credit goes to California Assoication of Realtors (C.A.R) for this information.
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Global Papers the day after Obama became President
November 10th, 2008 categories: Buyer's Advice, Seller's Advice
Someone screen captured many many many of the front-pages from global papers the day after Obama became president-elect… It’s great because its vast and you can save the large images of the ones you like.
Click on the Newspaper below to preview hundreds more…..
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