Archive for the 'Seller's Advice' Category
J.D. Power and Associates Award!
August 29th, 2008 categories: Buyer's Advice, Seller's Advice
| Discussion: 2 Comments »
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
.
.
.
.
| Discussion: No Comments »
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.
| Discussion: No Comments »
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)
| Discussion: No Comments »
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.
| Discussion: No Comments »
Alternative to a Foreclosure
August 8th, 2008 categories: Seller's Advice
The housing legislation may help as many as 500,000 homeowners avoid foreclosure, by assisting them in refinancing into more affordable government backed loans. There will be unfortunately many who might not qualify; people facing hardships should be looking at alternatives, an easier way out.
Deed in lieu of foreclosure
Short sales
Short sales is basically a homeowner who cannot keep up with their loan asks the lender can they sell their home for less than what is owed on the home’s mortgage, and forgive the balance of the unpaid debt.
Deed in lieu of foreclosure
A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.
Free from debt.Any of the two routes may be an option rather than foreclosure and in some cases you might as well foreclose. Depending in the state you live the Lender can go after you for the balance.
Lenders are showing signs of a willingness to help in short sales and deeds in lieu of foreclosure due to the fact that is cheaper for the lender to do so.
Counseling Resources for troubled Homeowners
Neighborhood Assistance Corp. of America
naca.com1-888-302-6222
AcornAcorn.org
1-866-672-2676
Homeownership Prevention Foundation
995hope.org
1-888-955-4673
HomeFree – USAHomefreeusa.org
1-866-696-2329
| Discussion: No Comments »
Memorial Day Weekend
May 25th, 2008 categories: Buyer's Advice, Seller's Advice
Have a
GREAT Weekend
| Discussion: No Comments »
Your Orange County ECOBroker
May 13th, 2008 categories: Buyer's Advice, Seller's Advice
| Discussion: No Comments »
Mothers Day
May 11th, 2008 categories: Seller's Advice
For all you GREAT Mothers out there
Have a wonderful Day!
| Discussion: No Comments »
Another Reason to List With Me
April 17th, 2008 categories: Seller's Advice, Tips for preparing your home for the market
If you notice when looking closely at the photo the Realtor took a photo of the photo on his computer and then had to upload that photo to his computer and then post it in the MLS.
I can picture his/her Presentation to the unfortunate Seller. “And I will send out my Professional Photographer who will take a photo of your Home download it to my computer, now here’s the kicker, I will then have my professional photograher take another photo of your home on my brand new DELL Computer Centro Installed chip set with 752 RAM turbo charged that I got second hand and then stick it up on the Orange County MLS for all to see your BEAUTIFUL HOME.”
| Discussion: No Comments »
