Archive for the 'Buyer's Advice' Category
J.D. Power and Associates Award!
August 29th, 2008 categories: Buyer's Advice, Seller's Advice
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203(k) Mortgages
August 28th, 2008 categories: Buyer's Advice, Green Mortgages
Streamline 203(k) Mortgages
FHA’s 203(k) streamlined rehabilitation loan. This versatile product, while not designed exclusively for energy purposes, can be used to finance up to $35,000 in energy upgrades to a property. From insulation, windows or solar panels, to a new furnace—virtually any energy feature qualifies. Environmental retrofits such as radon mitigation systems are also eligible under the 203(k) program.
The Section 203(k) program is HUD’s primary program for the rehabilitation and repair of single family properties. It is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.
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Is your Money Safe?
August 25th, 2008 categories: Buyer's Advice, Seller's Advice
Last month’s failure of IndyMac Bank, many people have some serious doubts whether their money is safe. Federal Deposit Insurance Corp. (FDIC) guarantees most bank deposits. Points you may need to know.
What types of accounts are covered?
The FDIC protects certificates of deposits (CD’s), checking and savings accounts, money-market savings accounts and Christmas club accounts. Although Stocks, Bonds, and mutual fund shares even those purchased through an FDIC bank are not protected.
What are the limits of FDIC insurance?
Bank accounts that have less than $100,000 in them and certain retirement accounts (IRAs held in CD’s and money market accounts) that have less
than $250,000 are fully protected by the FDIC even if the bank fails. If you are over these limits you can keep your deposits fully protected by:
1. Sharing your money among several different bank companies. Note that dividing your money among several different branches of the same bank will not guarantee full protection.
2. If you prefer to keep your money in the same bank company, you can still be fully protected if you divide your money among various “ownership categories”. Ownership categories include a personal account in your name, a personal account in your spouse’s name, a joint account co-owned by you and someone else, and a trust account that names someone other than you as a beneficiary.
Have customers ended up with uncovered deposits?
If you purchase a CD through an investment broker, this CD will often be placed with a bank at which you already have an account. If the CD and your other accounts exceed the $100,000 you may not be fully protected. Before purchasing CD’s through a broker, ask where they will be placed. Also, keep track of the interest your accounts earn so you don’t exceed the $100,000.
What will happen if your bank fails?
In almost every case, depositors can fully access their funds by the next business day. Failed banks are closed on Fridays and funds are available by the following Monday. You can usually use ATM cards and write checks over that weekend also. And for customers whose accounts which are over the FDIC limit, all hope is not lost. Though this amount has varied, they can generally expect to recover 70 cents on the dollar of their uncovered funds after the bank’s assets are sold.
For more information, visit www.FDIC.gov
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Evicting Tenants When Landlords Foreclose!
August 20th, 2008 categories: Buyer's Advice, Seller's Advice
Victims in the current wave of foreclosures that I am not hearing much about are tenants. Individuals and Families renting from Landlords that are foreclosing on their properties, caught up in the middle and have their families thrown into a mess.
When a landlord foreclosures on the property he / she must transfer security deposits to the new owner(s) or back to the tenant(s). In truth this will never happen. AB 2586 clearly states that security deposits not returned to the new owner who has purchased the property through a foreclosure is liable for repayment of the security. The successor in interest can not ask the tenant to come up with additional security to replace the amount that was not transferred by the former landlord/owner.
AB 2586 addresses Utility shut offs for homes and condos. Landlords foreclosing on their properties may not afford to pay utility bills so decide to shut them off. The law requires dwellings in multifamily buildings to have notice of a shut off posted. The notice must be posted as well as mailed to
“Any Person Renting Property and allow tenants to begin service in their own names and then deduct payments from the rent and must provide at least 15 days notice. AB 2586 requires utilities to notify tenants of shutoffs by mail and the statement on the envelope must be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean.
The bill is lurking around the California legislature addressing the issues that do arise. Assembly Bill 2586 (Torrico) has passed the Assembly and is now heading for the Senate. The bill materialized due to the fact of tenant harassment pushing tenants out of foreclosed properties sooner than a thirty day eviction notice.
California has tenant-protection laws that govern landlords and tenants. California laws are not that crystal clear when a new owner, a “successor in interest”, takes over a tenant occupied property through foreclosure. 20 – 25% of residential foreclosures in California include rentals. Thats approximately 20,000 renters who were affected in 2007.
Sixty percent of Los Angeles residents are already renters, according to the National Multi Housing Council, an industry group.
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The New FHA
August 19th, 2008 categories: Buyer's Advice, Seller's Advice
New reports are showing that FHA loan production is approaching 1/3 of new loan submissions!!! And that number is expected to rise as Fannie/Freddie continue to modify their guidelines.
With current loan limits of $729,750 in Orange County (valid through 12/31/08 for 1 unit property. Limits vary per county). FHA is becoming the
loan of choice for clients with less than 20% down.
FHA has other benefits as well:
1) Minimum 3.5% Down Payment (Better than any conventional loan)
2) Non-Occupant Co-Borrowers (So Mom & Dad can help their kids buy their first home)
3) Buyers with less than perfect credit (In today’s world…a lot of folks!)
4) All funds can be gifted (Don’t need any of their own money)
5) 6% Seller Concessions (Recurring and Non-Recurring Closing Costs)
6) No Reserve Requirements (No money in the bank)
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Pending Home Sales
August 14th, 2008 categories: Buyer's Advice, Seller's Advice
The Pending Home Sales increased 5.3 % in June to 89 from 84.5 in May, according to the NATIONAL ASSOCIATIO
N OF REALTORS® (NAR). Although the Pending Home Sales remains 12.3 % below June 2007 levels. The Pending Home Sales is an indicator of whats to come ahead and is based on pending sales of existing homes. A home that is Pending is a home not yet closed but is going through the process called Escrow.
Sales have increased consistently in recent months, like Sacramento, Calif, Las Vegas where people can actually afford homes now. Despite a decrease in existing home sales in June, NAR is forecasting that the recently signed federal housing bill will assist with the market’s recovery. NAR also predicts that the provision in the bill allowing first-time home buyers to receive a $7,500 tax credit will increase home sales, which could be sustained into 2009.
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Memorial Day Weekend
May 25th, 2008 categories: Buyer's Advice, Seller's Advice
Have a
GREAT Weekend
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Foreclosures in Orange County
May 24th, 2008 categories: Buyer's Advice
The Market in Orange County is chaotic right now. Activity is huge, especially Foreclosed properties. The Banks are pricing properties to sell which is causing multiple offers. I previewed a Foreclosed property with a Client who loved it and wanted to put in an offer. Called the Listing agent and was informed that there were multiple offers on it. How many? I asked, “60 he says”
The property wasn’t on the market a day and it had 60 offers on it. Of course I asked what the highest price was knowing theres no way he will give me the exact $$$ amount. Well over the asking “he replies”.
Properties are being priced so well, by the end of the day the banks are getting pretty much what they are looking for.
” Sellers, Note to self
I Should Price My Home to SELL “
You never know you might even get more than you thought. 
A Foreclosed property in Stanton, CA, the bank dropped it’s price from $469,000 to $319,900. I caught it, phoned my client and we rushed over. They absolutely loved it, put in an offer that night, called the agent the next morning who sent it into the Bank, got back a counter offer a couple of hours later, signed the counter and bank Addendums (Bank Addendums override the original Purchase Offer).
Now, while all this is going on, offers were coming in all over the place on this property. In only one day the Listing agent had over 40 offers. From all cash offers to well well over asking price.
Rubbish you might say, but let me tell you how you can be ahead of the rest when in the Market for a Foreclosure. And let me tell you Why and How we got the best deal in Orange County.
1. Get a Realtor you are completely comfortable with and know he / she will have you best interests, if not call me - (714) 943-0444
2. Call me.
3. Shop around at least 3 Different Lenders. Pick one that meets your needs best. And make sure he / she works only within your comfort Zone. What I mean regarding your comfort zone, your monthly payments. Get that Pre-Approval letter.
4. (714) 943-0444
5. Photo copy of the Good Faith Deposit which is normally 1% of the asking price.
6. Photo Copy of your Credit Scores.
7. This one will help you to get your offers accepted that much quicker, ” PROOF OF FUNDS “ a copy of your account statement showing that you actually have funds to close Escrow. Ask your lender to estimate (approx) the closing costs to close Escrow. And show that in your bank account.
8. Not sure if I gave you my number (714) 943-0444
9. Get your Realtor (excuse me) me to write up an offer before you preview.
10. Be the first to preview that property, don’t be the 3rd, 4th or 5th be the first.
Be Prepared, Below is the Receipy
A ” Realtor “ (714) 943-0444
Approval Letter
Photo copy of ” Good Faith Deposit “
Photo copy of ” Credit Scores “
MOST IMPORTANT ” PROOF OF FUNDS “ print out a copy of your account
Write up the OFFER before you get there
Be the FIRST to catch that deal, be the FIRST to preview the property
FORECLOSED PROPERTIES
Be Careful when buying Foreclosed properties. Always get advice from experienced Realtors who have represented the Buying side of a Transaction. (714) 943-0444
Buying Foreclosed properties is a completely different animal. It is normally one sided, Banks of course. Their Addendums override the Purchase Contract. They do not have to disclose anything to the buyer. Why you ask? Simply the Bank has never lived there. They are exempt from disclosing anything. They do not have to do any repairs, so if you think you might be getting a deal, think twice.
NEVER EVER EVER waive your rights to get a Home Inspection on a foreclosure it could be your ruin. When you do get a Home Inspection it will have to be IMMEDIATELY the day you go into Escrow. On a Foreclosure property your Request For Repairs have to be done within 7 Days and submitted of course to the Bank for review.
My Clients and I have been 100% successful on getting all repairs done and getting termite work done also. And getting Home warranties for one year.
If you have any questions regarding Foreclosures please do not hesitate to contact me. I will be happy to help whether you need to buy or not.
Need more information regarding the buyers market in Orange County?
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Your Orange County ECOBroker
May 13th, 2008 categories: Buyer's Advice, Seller's Advice
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Best Deal in Anaheim Hills Orange County $489,900
April 15th, 2008 categories: Best Buys and Good Deals On the Market, Buyer's Advice
If You Are in The Market For A Great Deal This IS IT
Bank Owned Property. Just put on the Market today 04/15/2008.
Anaheim Hills in Orange County.
Single Story, single family home in prestigous Anaheim Hills.
This bank owned beauty features 3 bedrooms, 2 bathrooms,
direct access garage, laminate flooring.
Features
Bedrooms 3
Baths 2
ASqFt 1,470
YrBlt 1974
ALotSize 5,450
Acres 0.13
Garage 2
Please not hesitate to contact me for Further information. 1-714-943-0444
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