Archive for the 'Buyer's Advice' Category
Beyond The Headlines
February 7th, 2010 categories: Buyer's Advice
Don’t miss the third annual Southern California Home Buyer’s Fair
Thousands of potential home buyers are expected to converge the weekend of March 13 and March 14 at the Los Angeles Convention Center for the FREE third annual Southern California Home Buyer’s Fair. The event is sponsored by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the Los Angeles Times.
The Southern California Home Buyer’s Fair, open 10 a.m. to 5 p.m., Saturday, March 13, and 11 a.m. to 4 p.m., Sunday, March 14, features more than 50 educational “how-to” seminars designed to help home buyers navigate today’s real estate market with confidence and peace of mind. Seminar topics range from understanding home prices and monitoring and fixing credit to applying for a mortgage and the importance of the home inspection. Several of the sessions also will be offered in Spanish.
The event is free to the public. In addition, the first 200 attendees each day will receive a free movie ticket (one ticket per person).
C.A.R. also has created a consumer fact sheet about the event. Please visit http://www.homebuyersfair.com/ for more information.
The Wall Street Journal
California’s home inventory shrinks to 5-year low
California’s Unsold Inventory Index (UII), a closely watched index indicating the number of months needed to deplete the supply of homes on the market at the current sales rate, declined to 3.8 months in December, the lowest level in five years, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). By comparison, the UII for existing, single-family homes stood at 5.6 months in December 2008.
MAKING SENSE OF THE STORY FOR CONSUMERS
Some economists believe that California’s housing inventory is artificially low because many discretionary sellers—homeowners who do not have to sell their homes—are waiting on the sidelines until home prices rise. Others believe there are more foreclosures to come, as unemployment in the state continues to rise. However, C.A.R. predicts that foreclosures will remain flat in 2010 compared with 2009, as lenders are listing properties for sale at a more metered pace.
California’s housing market has shown signs of stabilization since early last year. Sales of existing, single-family homes bottomed out in August 2007, and the median home price reached its trough in February 2009.
In December, the median price of an existing, single-family home rose to $306,820, an 8.4 percent rise year-over-year, the second consecutive year-over-year increase, and the 10th straight month-over-month increase, according to C.A.R.’s December sales and price report.
With affordability near-historic highs, low interest rates, and home buyer tax credits, many properties in California are receiving multiple offers and sparking bidding wars. Home buyers who find themselves in bidding wars should work closely with their REALTOR® to ensure they are crafting realistic offers that are more likely to be accepted by the seller.
To read the full story, please click here.
CNN Money
Get help—before you fall behind on your FHA mortgage
On Friday, the Federal Housing Administration announced that it will assist borrowers before they become delinquent.
To read the full story, please click here.
The Mercury News
Home sizes fall as builders, buyers embrace economic reality
New-home buyers responded to the tough times in 2009 by opting for smaller houses, driving down the average size of a house built in the United States for the first time in 27 years.
To read the full story, please click here.
Bloomberg
Reviving down-payment-assistance programs faces FHA opposition
The U.S. Federal Housing Administration, facing as much as $14 billion in losses from a down-payment-assistance program terminated in 2008, is seeking to block efforts to bring it back.
To read the full story, please click here.
The Washington Post
Stakes are high as government plans exit from mortgage markets
The wind-down of federal support for mortgage rates, set to end in two months, is a momentous test of whether the Obama administration and the Federal Reserve have succeeded in jump-starting the housing market and ensuring it can hold its own.
To read the full story, please click here.
The Wall Street Journal
No plans for mortgage-principal reductions
Despite increasing pressure to take more aggressive steps to keep troubled borrowers in their homes, the Obama administration said last week that it had no immediate plans to alter its foreclosure-prevention program by increasing its reliance on reducing loan balances.
To read the full story, please click here.
San Francisco Chronicle
Home prices rise for 6th straight month in Nov.
Home prices rose for the sixth straight month in November with 14 of 20 metro areas posting improvements from the month before.
To read the full story, please click here.
Los Angeles Times
New home sales fall 7.6 pct in December
New home sales unexpectedly fell 7.6 percent last month, capping the industry’s weakest year on record.
To read the full story, please click here.
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Best GAA Football Goals
January 3rd, 2010 categories: Buyer's Advice, Irish Footbal, Neighborhood and City events/highlights, Seller's Advice, Uncategorized
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Beyond the Headlines
October 15th, 2009 categories: Buyer's Advice, Seller's Advice
C.A.R. Mortgage Update
Help from Fannie and Freddie for foreclosed homes
Fannie Mae and Freddie Mac are offering financing incentives for buyers of foreclosed homes owned by Fannie and Freddie. Home buyers have until Oct. 30 to apply for Freddie Mac’s SmartBuy program, which started in July, and offers up to 3.5 percent of a home’s sale price to help cover closing costs.
To qualify, the home must be a principal residence and must be selected from Freddie Mac’s HomeSteps Web site (www.homesteps.com/homeshoppers.htm) for its foreclosed properties. Loans must close by year’s end. The HomeSteps properties also include two-year warranties on major appliances and electrical, plumbing, and air-conditioning and heating systems.
Fannie Mae’s HomePath program (www.homepath.com) is an ongoing program and offers more incentives than Freddie Mac’s. Through participating lenders, Fannie will offer mortgages to buyers who make a down payment of 3 percent. The buyers do not have to secure private mortgage insurance, a common practice with nearly all lenders. Home buyers also can negotiate for Fannie Mae to offer closing-cost assistance.
Unlike Freddie Mac’s program, Fannie’s assistance level is not capped. Under the HomePath program, the average participating homeowner has received payments equivalent to 3.75 percent of the loan’s value.
To read the full story, please click here:
http://www.nytimes.com/2009/10/11/realestate/11mort.html?_r=1&ref=realestate
To view additional articles about new home loans, loan modifications, or mortgage refinances, please visit the following:
Refinancing wave skips Inland region
To read the full story, please click here:
http://www.pe.com/business/local/stories/PE_Biz_S_mortgages10.390c564.html
Schwarzenegger signs seven mortgage laws
To read the full story, please click here:
http://www.latimes.com/business/la-fi-mortgage13-2009oct13,0,6365006.story
FHA head rejects calls for higher down payments
To read the full story, please click here:
http://blogs.wsj.com/developments/2009/10/13/fha-head-rejects-calls-for-higher-down-payments/
Rates on 30-year loans inch up, to 4.92 percent
To read the full story, please click here:
http://www.sacbee.com/business/nation/story/2255906.html
Los Angeles Times
Start repairing bad credit rating now
Homeowners who have lost their homes to foreclosures or through short sales may be able to buy another home in as little as two years by taking immediate steps to rebuild their credit.
KEEP THIS IN MIND
Consumers who have had their homes foreclosed upon or sold via a short sale, where the lender agrees that the owner can sell the home for less than is owed on the mortgage, are advised to review their credit report as soon as possible for accuracy. Web sites such as annualcreditreport.com offer free reports, but not free credit scores.
The first step in reviewing a credit report is to make certain that the information in the file is about the correct individual, and not someone with a similar name or similar Social Security number. Credit reports also should be reviewed for incorrect items, such as credit cards that were never opened or payments made that were never reported.
Homeowners who have sold their home via a short sale should review their credit report to ensure the account reflects a zero balance rather than the difference between the outstanding balance and the sales price. Consumers should not assume that a short sale carries no further obligations. Some lenders are filing deficiency judgments, while others are selling the debts to investors who then contact borrowers for repayment.
Staying current on credit card payments, applying for secured credit cards, and taking out and paying on small loans also can help to reestablish credit.
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-lew11-2009oct11,0,648573.story
In Other News…
Los Angeles Times
Housing upturn occurring in some parts of Southern California, data show
Southern California’s housing market took another small step toward recovery in September as the median sales price for homes in some areas rose above last year’s levels—the first such increase since the market crashed.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-home-sales14-2009oct14,0,3912609.story
The Wall Street Journal
Home builders curtail freebies
Home builders are scaling back on the incentives offered to attract buyers, putting an end to such freebies as sports cars and tropical vacations.
To read the full story, please click here:
http://online.wsj.com/article/SB125470256909163111.html
CNN Money
Push on to expand $8,000 tax credit
Congress is considering proposals to greatly expand a soon-to-expire $8,000 tax credit for first-time home buyers—potentially applying it to all but the wealthiest home buyers.
To read the full story, please click here:
Los Angeles Times
Mortgage professionals expect home foreclosures to keep rising
Despite sub-5 percent mortgage rates and signs that home prices have bottomed out in some places, executives and economists are decidedly downbeat about the future of the country’s mortgage industry as well as the housing market it depends on.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-mortgage14-2009oct14,0,7151440.story
Press Enterprise
Senior housing communities thrive
Since 2005, sales in Inland age-restricted communities have plunged by half but they are still stronger than in other new home developments, according to Hanley Wood Market Intelligence, a real estate research firm based in Costa Mesa.
To read the full story, please click here:
http://www.pe.com/business/local/stories/PE_Biz_S_seniorhsing2-08.390c845.html
Los Angeles Times
Home buyers should pay attention to IRS Form 4506-T
You might assume it’s just another boring-looking piece of the paper blitz you’re hit with when you apply for a home loan. But given IRS Form 4506-T’s new prominence in the fraud-shocked mortgage markets, it’s much more than just another document to sign.
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-harney11-2009oct11,0,1381008.story
Los Angeles Times
Survey: Economists say recession is over, predict moderate, slow-paced recovery
More than 80 percent of economists believe the recession is over and an expansion has begun, but they expect the recovery will be slow as worries over unemployment and high federal debt persist.
To read the full story, please click here:
http://www.latimes.com/business/nationworld/wire/sns-ap-us-economic-recovery,0,2413922.story
What you should know about the market…
The federal government is offering some financial incentives in the form of a tax credit to homeowners making home improvements. The credits can be claimed on income taxes for the year in which the improvements were purchased—either 2009 or 2010. With a tax credit, the amount is deducted from the taxes owed.
Upgrades such as insulation, windows, doors, roofing, heating and air-conditioning systems, and water heaters qualify for a federal tax credit of 30 percent of the purchase price of the product, up to $1,500. More-costly improvements, including solar water heaters, solar panels, small windenergy systems, and geo-thermal heat pumps, offer a credit of 30 percent of the purchase price, but with no cap.
Details on which products qualify can be found on the Environmental Protection Agency’s Energy Star program Web site at http://www.energystar.gov/
Search for properties at EnterYourDreamHome
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Apply For The Mortgage Protection Program!
October 9th, 2009 categories: Best Buys and Good Deals On the Market, Buyer's Advice
First time homebuyers? APPLY FOR THE MORTGAGE PROTECTION PROGRAM! This is a FREE program th
at provides you up to $1,500 a month for up to six months in the event of job loss to help pay the mortgage; a $750 monthly benefit also is available for a qualified co-buyer. There is NO cost to you! To qualify, buyers must be first time home-buyers – haven’t owned a home for the last three years; has opened escrow on or after April 2, 2009 and closed escrow before December 31, 2009; use an active California REALTOR® ; purchase the property in California, and be a W-2 employee (cannot be self-employed). Funds are limited. Please call me or email me to find out more. You can reach me direct on 714.943.0444 or Patrick @EnterYourDreamHome.com
Search For Homes in Orange County CA
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Beyond The Headlines
September 24th, 2009 categories: Buyer's Advice, Real Estate New

Beyond the Headlines
C.A.R. Mortgage Update
This week’s C.A.R. Mortgage Update contains information about changes to FHA lending standards; Obama administration’s steps to shore up the Federal Housing Administration program; three large banks issuing more than half of U.S. residential mortgages and its impact on taxpayers; changes to mortgage interest reporting; and the possibility of a new wave of foreclosures as many option ARMs reset to higher rates.
FHA will tighten credit standards
Although the Federal Housing Administration (FHA) has confirmed that as of Sept. 30 it will fall short of its legal requirement to maintain supplementary reserves of 2 percent of the loans it insures, FHA Commissioner David Stevens says that it will not be seeking a taxpayer bailout.
Instead, to help mitigate losses, the FHA will tighten credit standards to rebuild the cushion to 2 percent or more, without raising the premiums borrowers pay or seeking an increase in its down-payment requirement of 3.5 percent.
Under the new rules, lenders making FHA-insured loans would need to show net worth of at least $1 million, an increase from $250,000. The agency is seeking to ensure that lenders have funds available to compensate the FHA if their loans fail to meet quality standards.
The FHA also will impose a maximum loan value of 125 percent of the current estimated home value on refinanced loans, in line with Fannie Mae and Freddie Mac.
Appraisals will be valid for no more than four months, a decrease from the previous six to 12 months validation period. The FHA also plans to implement appraisal changes adopted earlier this year by Fannie and Freddie. Mortgage brokers or bank employees paid on commission won’t be allowed to order appraisers.
To read the full story, please click here:
http://online.wsj.com/article/SB125328361187423115.html
To view additional articles about new home loans, loan refinances, or loan modifications, please visit the following:
Obama bolsters program that insures home loans
To read the full story, please click here:
http://money.cnn.com/2009/09/18/news/economy/FHA_housing_trouble/index.htm?postversion=2009091815
Uncle Sam bets the house on mortgages
To read the full story, please click here:
http://online.wsj.com/article/SB125322329116020929.html
A reckoning on option ARMs
To read the full story, please click here:
http://www.nytimes.com/2009/09/20/realestate/20mort.html?_r=1&ref=realestate
Feds plan to tinker with mortgage interest reporting
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-lew20-2009sep20,0,1828223.story

Beyond the Headlines
Chicago Tribune
Short sales spread across real estate market, leaving frustration in their wake
As more homeowners find themselves underwater — owing more on their mortgage than their home is currently worth — and unable to make the monthly mortgage payments, many are turning to short sales, which allow a homeowner to sell their home for less than owed on the mortgage. Short sales can be a win win situation for all parties, because they enable home buyers to purchase properties in desirable neighborhoods and at favorable prices.
KEEP THIS IN MIND
• Theoretically, short sales should be a win-win for the bank and the homeowner. Although the bank does not receive the full amount owed on the mortgage, it also does not incur the costs of foreclosure and/or eviction, if necessary. Many homeowners also prefer short sales because it is less damaging to their credit scores than a foreclosure. However, many real estate experts say that the majority of banks are reluctant to approve short sales, and often let properties go into foreclosure, even when there are reasonable offers on the property. In addition to considering the price, most lenders also take into consideration whether the homeowner can demonstrate financial hardship. If the homeowner is capable of making payments, many lenders will try to work out a loan modification, rather than a short sale.
• Unlike foreclosed properties, which may be run-down and vacant for many months, short-sell properties are likely to be better maintained, as most owners may still live in the home.
• Short sales often are more time intensive than traditional transactions and often require additional paperwork. Due to the large number of offers on short sales, many take as long as a few months to receive approval. If information or required forms are missing or incomplete, the bank may set the offer aside, which could delay the process and cause the property to go into foreclosure. To expedite the process, sellers should work closely with their REALTOR® to provide all of the necessary paperwork.
• Working with a REALTOR® who has experience with short sales can help both sellers and home buyers during the transaction. A seasoned REALTOR® will be able to serve as the mediator between the seller and the lender, and lead to a successful transaction.
• It is important to remember that in a short sale, although the seller may be anxious about selling the property and willing to accept any offer, it is ultimately up to the lender to determine if, and at what price, the property can be sold. Home buyers should work closely with their REALTOR® to submit realistic offers.
To read the full story, please click here:
http://www.chicagotribune.com/classified/realestate/chi-sun-short-sales-0920sep20,0,5529436.story
In Other News…
San Francisco Chronicle
U.S. home prices rise 0.3 percent in July
U.S. home prices rose slightly in July from a month earlier, according to a government index, further evidence the housing market is stabilizing.
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/09/22/financial/f072850D08.DTL&type=realestate
CNN Money
1.4 million Americans score $8,000 tax credit
More than 1.4 million Americans have already claimed the new tax credit for first-time home buyers, according to a report from the Internal Revenue Service.
To read the full story, please click here:
The Wall Street Journal
Want the home buyer tax credit? Don’t shop for furniture
With the deadline on the first-time home buyer tax credit looming, plenty of buyers are under contract and looking to close before Nov. 30. Excited to move into a new home, some of these first-timers start hitting the stores shopping for new furniture, appliances, or curtains. Big mistake,
To read the full story, please click here:
http://blogs.wsj.com/developments/2009/09/18/want-the-home-buyer-tax-credit-dont-shop-for-furniture/
Los Angeles Times
Homeowners who “strategically default” on loans a growing problem
Research using a massive sample of 24 million individual credit files has found that homeowners with high scores when they apply for a loan are 50% more likely to “strategically default”—abruptly and intentionally pull the plug and abandon the mortgage—compared with lower-scoring borrowers.
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-harney20-2009sep20,0,2560658.story
San Francisco Chronicle
$30 billion home loan time bomb set for 2010
Next year, many option ARM payments will begin to readjust, slamming borrowers with dramatically higher monthly mortgage bills. Analysts say that could unleash the next big wave of foreclosures—and home-loan data show that the risky loans were heavily used in the Bay Area.
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/09/20/MNOR19N2B1.DTL&type=realestate
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Beyond The Headlines
August 30th, 2009 categories: Buyer's Advice

C.A.R. Mortgage Update
This week’s C.A.R. Mortgage Update contains information about changes to the Truth in Lending Act and the potential impacts on borrowers.
New law may cause delays for borrowers
Changes to the Truth in Lending Act took effect last month; requiring lenders to provide certain disclosures about mortgages fees and helping borrow
ers make better-informed loan choices. However, some in the industry believe the new regulations could create further delays in the lending process.
Previously, lenders could begin underwriting the loan the same day they received an application by charging fees to borrowers, such as paying for property appraisers. The new regulations now mandate a three-day review period for the loan documents before the loan process can begin. If the interest rate changes before the settlement date, a new set of disclosure documents must be given to the borrowers, restarting the review period.
Funding the typical mortgage on a new purchase takes approximately 45 days—at least two weeks longer than last year,
according to some lenders. Delays in loan funding also can be costly to borrowers, as time on mortgage rate locks may run out.
Borrowers can lock in interest rates for as long as 60 days, and may extend the rate lock for up to three weeks—down from four weeks a year ago. The cost of each further one-week rate-lock extension costs one-quarter of a percentage point of the total loan amount.
Borrowers whose settlement dates are in jeopardy may apply for an emergency waiver of the three-day waiting period, but it is not likely to be granted, according to one lender who issues loans in 20 states.
To read the full story, please click here:
http://www.nytimes.com/2009/08/16/realestate/16mort.html?ref=realestate

Los Angeles Times
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 th $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.
KEEP THIS IN MIND
- Finding the right house can take some time, so REALTORS® recommend home buyers start looking for a home as soon as they are able and ready to purchase. Buyers also should build in extra time to accommodate the lending process, which is taking approximately two weeks longer to process this year compared with 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.
- Only primary residences are eligible for the federal tax credit, including new or existing single-family homes, townhouses, condominiums, manufactured homes, custom homes, and houseboats. Vacation homes and investment properties do not qualify.
- Purchases must be arm’s-length transactions, meaning the seller cannot be the buyer’s parent, grandparent, child, grandchild or spouse.
- 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.
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-lew16-2009aug16,0,2155902.story

In Other News…
San Francisco Chronicle
Home builder sentiment index rises in August
The National Association of Home Builders said Monday its housing market index rose in August to the highest point in more than a year, as home buyers hurried to take advantage of a federal tax credit before it expires.
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/08/18/BUK4199OTB.DTL&type=realestat
Los Angeles Times
Home construction falls 1%, misses views
Construction of new homes and apartments dipped slightly last month, missing expectations, in a sign that the building industry’s recovery from the housing bust is likely to be bumpy and gradual.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-housing-starts19-2009aug19,0,476148.story
The Wall Street Journal
Home prices: There’s no quick recovery ahead
There has been some muted—albeit exhausted—cheering from homeowners in recent weeks. But before we break out the champagne, look out for further potential problems just down the road.
To read the full story, please click here:
http://online.wsj.com/article/SB125038307081334617.html

The New York Times
In the grip of indecision
A few years ago, buying real estate was simple. If you loved the place, you could buy it. If you were ambivalent, you could buy it anyway, because if you changed your mind later, you could always sell it at a profit. But these days, buying a home is more psychologically demanding, fraught with conflict and confusion
To read the full story, please click here:
http://www.nytimes.com/2009/08/16/realestate/16cov.html?_r=1
Los Angeles Times
Some saw the housing bubble and sold; trick now is spotting the bottom
Mark Kiesel saw the real estate crash coming. Kiesel, a managing director at investment firm Pimco, wasn’t alone in his 2006 warning of a looming housing market meltdown. But he was among the few who put his money—in his case, a lot of it—where his mouth was.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-bubble-timers17-2009aug17,0,6997492.story
San Diego Union-Tribune
Falling prices boost home affordability
San Diego County’s declining home prices have boosted first-time buyer affordability to 59 percent, more than twice what it was two years ago, the CALIFORNIA ASSOCIATION OF REALTORS® reported Friday.
To read the full story, please click here:
http://www3.signonsandiego.com/stories/2009/aug/14/bn14afford115119/?business&zIndex=149487

What you should know about the market…
- New rules impacting home appraisals have resulted in some homeowners feeling they are not receiving fair valuations of their homes. To assist appraisers who may not be familiar with the neighborhood, homeowners may wish to provide a typed list of the home’s and neighborhood’s best attributes. Key items to note on the list include: Recent upgrades or improvements to the house, such as custom woodwork or new windows; perks of the property, like striking mountain views or mature landscaping; and the benefits of living near public transportation or access to top schools.
- When touring homes, home buyers should consider their lifestyle and how it corresponds with the floor plan of the house. “A good floor plan gives the visitor a feeling of harmony. The rooms and major features are all in proportion,” advises one agent. Home buyers also should determine whether the house will work on a day-to-day basis, rather than focusing on aspects that might initially impress.
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Beyond The Headlines
July 17th, 2009 categories: Buyer's Advice, Seller's Advice

C.A.R. Mortgage Update
This week’s C.A.R. Mortgage Update contains information about FHA mortgages, mortgage rates, jumbo loans, foreclosure scams, and mortgage modifications.
The appeal of 3.5% Down: FHA mortgages increase in popularity
A recent survey by Zillow.com found that more than one-third of buyers do not plan to make down payments larger than 10 percent, while nearly one-fifth do not plan to issue a down payment. Since loans insured by the Federal Housing Administration (FHA) only require a 3.5 percent down payment, these loans have risen in popularity among buyers.
Last month, the share of applications for government-insured mortgages rose to its highest level since November 1990, accounting for nearly 36 percent of all mortgage applications, according to the Mortgage Bankers Association. In 2005, the share of government-insured mortgages stood at less than 6 percent.
To read the full story, please click here:
http://blogs.wsj.com/developments/2009/07/10/the-appeal-of-35-down-fha-mortgages-increase-in-popularity
To view additional articles, please visit the following:
Mortgage rates drop for third week; 30-year at 5.14%
To read the full story, please click here:
http://www.usatoday.com/money/economy/housing/2009-07-16-mortgage-rates_N.htm
Upscale home sales lag as jumbo loans are hard to get
To read the full story, please click here:
http://www.usatoday.com/money/economy/housing/2009-07-14-sales-jumbo-loans_N.htm
Foreclosure scams targeted in U.S., state and local crackdown
To read the full story, please click here:
http://www.latimes.com/business/la-fi-foreclosure-scams16-2009jul16,0,1422452.story
Mortgage firms prodded to modify more loans
To read the full story, please click here:
http://online.wsj.com/article/SB124718320592520315.html
Loan modification efforts helping few troubled homeowners
To read the full story, please click here:
http://www.mercurynews.com/realestatenews/ci_12789161
.

CNN
How to find your best place to live
The current economic situation has brought out many home buyers and also has caused some to relocate for new jobs. Finding the right home and one that has the best chance of holding or increasing in value can be challenging; however, real estate experts say that areas where homes retain their values best in tough times tend to have certain factors in common.
MAKING SENSE OF THE STORY FOR CONSUMERS
Since real estate markets are local and vary neighborhood to neighborhood, home buyers should work with REALTORS® who are familiar with the areas in which the buyers are interested. REALTORS® can help narrow down the number of properties to those that meet the buyers’ requirement.
During the height of the market, many home buyers only could afford to purchase in the exurbs. However, long commutes and high gas bills also can take their toll on homeowners. According to Ken Shuman at Trulia.com, homes more than 40 miles outside city centers generally have declined in value the most. For example, Shuman says that homes in Antioch (45 miles from San Francisco) lost 37 percent of their value in the past 12 months, while those in Walnut Creek (25 miles away) declined 18 percent.
Towns where zoning regulations make it more difficult to build have experienced smaller prices declines than towns that experienced huge building booms in recent years. “Prices are more likely to go higher if you can’t expand supply,” says Daniel McCue, research analyst the Harvard University Joint Center for Housing Studies. Towns nestled against barriers such as large lakes or protected wetlands also usually limit expansion.
Buyers can call the town or county planning office and ask how many acres of vacant land are in town, how much of it is zoned for residences, and the maximum number of homes that can be built. Requesting a copy of the town’s master plan also should tell buyers how much the housing stock is set to expand in the next 10 years.
Homes in towns with stores, banks, and movie theaters are more likely to hold value than those that are nearly all residential, as people like to live near these services and jobs, and provide the town a stronger tax base to fund public service items, such as police.
To read the full story, please click here:
http://money.cnn.com/magazines/moneymag/moneymag_archive/2009/08/01/105837635/index.htm?postver
sion=200907151

San Jose Mercury News
Foreclosures in Silicon Valley continue to climb
To read the full story, please click here:
http://www.mercurynews.com/business/ci_12834550
The Wall Street Journal
Home prices play big role in Americans’ decision to move
To read the full story, please click here:
http://blogs.wsj.com/economics/2009/07/14/home-prices-play-big-role-in-americans-decision-to-move/
The Los Angeles Times
Many underwater homeowners are deliberately walking away from mortgages
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-harney12-2009jul12,0,3674775.story
Bloomberg
U.S. economy: Consumer sentiment falls on job losses
To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aV3l4MNlohIs
BusinessWeek
Southern California Homes Sales Rise Again
To read the full story, please click here:
http://www.businessweek.com/the_thread/hotproperty/archives/2009/07/southern_califo_2.html

What you should know about the market
The U.S. Dept. of Housing and Urban Development (HUD) offers an online guide to preventing foreclosure. The guide provides consumers with information such as how to contact a housing counselor; when and how to talk to their lender; how to find foreclosure resources; tips on avoiding foreclosure and foreclosure scams, as well as information for consumers who cannot keep their home.
The guide to preventing foreclosure can be accessed by visiting
http://www.hud.gov/foreclosure/
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.
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C.A.R. Mortgage Update
July 2nd, 2009 categories: Buyer's Advice

This week’s C.A.R. Mortgage Update contains information about finding a home loan, reverse mortgages, FHA loans, and current mortgage rates.
Best way to find a home loan
During the height of the real estate market, most borrowers who applied for a mortgage received one. However, in today’s lending environment, consumers should be more cautious about where they apply for a loan and from which Web sites they receive quotes.
Borrowers should be cautious about sites that request a Social Security number and address upfront. The site may pull the consumer’s credit report, which could have a negative impact on their FICO score should they not apply for the mortgage.
It’s also important that consumers ensure that all fees are clearly disclosed on a site’s rate quote. Otherwise they may be surprised when receiving the paperwork from the lender. Borrowers who are unsure of which type of mortgage is best for them and their situation should contact a mortgage broker. Those in the market for a jumbo loan or financing an investment property may best be served by working with an experienced broker.
To read the full story, please click here:
http://money.cnn.com/2009/06/29/real_estate/home_mortgages.moneymag/index.htm?postversion=2009062903
To view additional articles, please visit the following:
Reverse mortgages for home purchases
To read the full story, please click here:
http://www.nytimes.com/2009/06/28/realestate/28mort.html?ref=realestate
F.H.A. loans help sales
To read the full story, please click here:
http://www.nytimes.com/2009/06/28/realestate/28post.html?ref=realestate
U.S. mortgage rates drop to 5.32%, Freddie Mac says
To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=20601213&sid=a5WJtkeFK5yU
Searching for a bottom in the housing market
With consumer confidence rising in May to its highest level in eight months, housing starts increasing more than 17 percent in May compared with the previous month, and sales of existing homes climbing 2.9 percent in April nationwide, it appears that the housing market may be stabilizing.
KEEP THIS IN MIND
• Although sales of existing, single-family homes rose 35.2 percent in May in California, compared with a year ago, the median price declined 30.4 percent. Some industry analysts predict that as specialized adjustable-rate mortgages, known as option ARMS and Alt-A mortgages, reset over the next 18 to 24 months, prices could decline further before stabilizing.
• “We are seeing strong buying activity, particularly in those boom and bust markets, where prices have declined significantly. Buyers are coming in and fighting over properties – there is multiple bidding in California and Florida,” says Lawrence Yun, chief economist with the NATIONAL ASSOCIATION OF REALTORS®.
• Sales of existing homes are soaring as many investors and first-time buyers purchase distressed properties. Yun estimates that about 50 percent of current sales involve distressed properties, and he expects the trend to continue as foreclosures rise in the months ahead.
• Although some economists predict home prices will continue to decline in the coming months, California’s median home price rose for the third consecutive month in May, posting the largest monthly increase on record for the month of May.
• Some buyers are trying to time the bottom of the market and purchase once it appears that prices are consistently and steadily rising. Many housing forecasters advise against this approach as buyers should not view their homes solely as investment opportunities. Historically, the average annual rate of return on a home lived in for five years or more is nearly 12 percent, based on data C.A.R. has collected over the last 40 years.
To read the full story, please click here:
In Other News…
The Wall Street Journal
McMansions out of favor, for now
To read the full story, please click here:
http://online.wsj.com/article/SB124630276617469437.html
The Los Angeles Times
Home prices post 18.1% annual drop, but market appears to be stabilizing
To read the full story, please click here:
http://www.latimes.com/business/la-fi-homes1-2009jul01,0,793187.story
The Mercury News
Not paying the mortgage, yet stuck with the keys
To read the full story, please click here:
http://www.mercurynews.com/realestatenews/ci_12682822
The Los Angeles Times
No end to foreclosures is in sight
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-blog28-2009jun28,0,2866475.story
The Wall Street Journal
Unemployment vexes foreclosure plan
To read the full story, please click here:
http://online.wsj.com/article/SB124597797525957807.html
Reuters
U.S. pending home sales rise 0.1 percent in May
To read the full story, please click here:
http://www.reuters.com/article/ousiv/idUSTRE56038Q20090701
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HOA Assistance Program
July 2nd, 2009 categories: Buyer's Advice
The Pacific West Association of REALTORS® Charity Foundation is helping first-time home buyers with the HOA Assistance Program to provide HOA dues for up to one year to first time home buyers!

HOA's
“Oftentimes, HOA dues can present a barrier to first time buyers. We are proud to have raised enough money to include an HOA dues assistance program this year, in addition to the down payment assistance grants that we will award,” said Michael DeLeon, President of the PWR Charity Foundation Board.
Applications for first time buyer programs.
>> Click Here for More Info on HOA Assistance Program
>> Click Here for More Info on Down Payment Assistance Program
Criteria:
- Income level (2 buyers) $111,600 for Orange County & and $90,960 for Los Angeles County.
- Purchase price is $350,000 for Orange and Los Angeles Counties.
- Buyers must contribute 1% of the sales price from their own pocket.
- Has not owned a home within the past 3 years.
- Credit score of 620 +.
- Approved from a direct lender
- Minimum five-year fixed-rate, full documentation (no stated income) loan.
- Buyer must be represented by a PWR REALTOR® member who has contributed to the PWR Charity Foundation in 2009.
- Must be located within PWR’s jurisdiction.
- Short-sales excluded
- Property and Home Owners Association must meet agency standards and pass review of PWR Underwriters (occupancy ratios apply, pending litigation, leased land,
- insufficient reserves not allowed) Condos & True Pud’s.
Jurisdictions Include:
Central/Northern Orange County and the Southeast Los Angeles County.
Anaheim/Anaheim Hills, Brea, Buena Park, Cypress, Fullerton, Garden Grove, La Habra/La Habra Heights, La Mirada, La Palma, Lakewood, Long Beach, Los Alamitos, Norwalk, Orange, Pico Rivera, Placentia, Rossmoor, Santa Ana, Seal Beach, Signal Hill, Stanton, Tustin, Villa Park, Westminster, Whittier, and Yorba Linda.
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Trade in Your Piece of Junk
July 2nd, 2009 categories: Buyer's Advice, Green Events, Neighborhood and City events/highlights, Restaurants, Seller's Advice
Obama signed into law a great new program that the (NHTSA) National Highway Traffic Safety Administration has named (CARS) the Car Allowance Rebate
System. This is a government program that helps you purchase a new, more fuel efficient vehicle when you trade in a less fuel efficient vehicle. See the Frequently Asked Questions for more details.
Criteria:
- Your vehicle must be less than 25 years old.
- Only purchase or leases of new vehicles qualify
- Trade-in vehicles must get 18 or less MPG (some pick-up trucks, cargo vans have different criteria)
- Must be registered and insured continuously for the full year preceding the trade-in.
- You don’t need a voucher; dealers will apply a credit at purchase.
- The program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first. First come first served
- The vehicle that you are trading in will be destroyed. The value you negotiate with the dealer should not exceed its scrap value. The law requires the dealer to disclose to you and estimate of the scrap value when trading in your vehicle.
Beginning date is around July 23. See Program Rollout
How their guarding against fraud during the program? Click here for more information.
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