Support the National Association of Realtor’s Four-Point Housing Stimulus Plan

Campaign Expiration Date:
November 30, 2008

Congress may soon consider a new economic stimulus bill. Housing has always lifted our economy out of past economic downturns so it is imperative that Congress focus on housing in the next stimulus package. This

We need ALL members to support NAR’s efforts to have the NAR Four-Point Housing Stimulus Plan included in any future stimulus bill.

Contact Congress today and ask them to include NAR’s Four-Points in the next stimulus package.

Make the $7500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit’s limited availability and repayment requirement severely limit the credit’s use and effectiveness.

*Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.

*Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.

*Permanently bar banks from engaging in real estate brokerage and management. The banks have proven they have enough to do to simply manage the loan process. Banks should not manage home sales and purchases.

Housing has always lifted our economy out of past economic downturns. It’s imperative now to foster a housing recovery, so that the economy can recover. Thank you for your hard work.

Written by Holly Leano - REALTOR and Sr Mortgage Consultant

Subscribe to my Newsletter

CHANGE or REFORM. Is it one in the same or are we just saving the middle class.

CHANGE or REFORM. Is this one and the same thing or are we just saving the middle class?

Wondering which way to vote? Not to worry. Just about everyone who is uncertain which way to vote has now become an ‘Independent’. Forgive me for saying this but if all the Independents had views that bordered between the two parties, why not start the 50/50 ballot system and split the votes. Because in all fairness, why must the in-between voter or for that matter, the ‘I like neither party’ voter be swayed to choose between someone who advocates ‘CHANGE’ and another who advocates ‘REFORM’. Truly both words nearly mean the same thing, so are we just dealing with ‘nuances’ or ‘semantics’ in the language used? But in this political climate, ‘CHANGE’ applies only to the middle class.

I was buying breakfast at a local fast food joint last week and had friendly conversation with the Hispanic floor manager. I asked him how business was going and he said… “Slow.. very slow. No one can afford even fast food these days!”

I asked him, what he hopes will happen on November 4th. He said “I don’t know what is good… all I know is that I want ‘CHANGE’ and I will vote for the person who tells me that he can ‘CHANGE’ my current situation.”

I felt compelled to ask him this next question, so I said to him “I understand your frustration, but what does ‘CHANGE’ mean to you?”

He responded, not indicating the party but using the current buzz word, “Well, if I vote for ‘CHANGE’, that means I will get a tax break immediately. My daughter is not working, not married and she has a baby. I told her she can go on welfare to help her baby. I want a President who is thinking about me….. So why do you ask me this question?”

I decided to explain myself. “CHANGE’ has two meanings - one, change for the better - because we know for sure, it will present a better outcome. Two, change can open up an arena for problems because the plan for change has not been well thought through. This means we are just glossing over the current problem and introducing something new, with the hope that it give Americans what they want.”

The manager was obviously still not clear, as he said to me “Well that’s what I want, ‘CHANGE’.”

I asked him again, ” And what is that exactly?”

He said “I don’t want to have to keep working so hard. If there is ‘CHANGE’ I can get a tax break and medical benefits. Maybe I can save the tax break to start my own business.”

“Ahh.. I see.” I replied. “I’m glad you are excited for change. Both parties have valid points that can either make or break the progress of the United States. However, I hope you will think about this too. As a business owner and a parent, who do you want controlling your money. Also do you think you have been living beyond your means? Are you willing to cut back on your expenses and help others who have less than you?”

He responded quickly “No.. I live paycheck to paycheck. I want my children to have a better life. What do you mean I have to help others? I have very little right now. I just lost my house and now I am renting. I need the tax break to pay for food.”

The manager kept quiet for a long time and then said to me “Why are you saying that I live beyond my means?”

I replied “I never said that. The party who advocates change wants everyone to share the problems 50/50 because that is fair. Not only will we share the problems, we will split the costs, split the difference, which ever way you call it, this party says they can fix America. Are you prepared to do this?”

He replied “Why are you making me choose? I just want ‘CHANGE’… any ‘CHANGE!”

Dear voters, do not rest until every stone has been turned. Until every ‘i’ has been dotted and ‘t’ crossed. Until every voice is heard. Every person who considers himself American, black, white, rich, poor or middle class, think for a moment what America means to you and then go out and vote.

We have not fought for freedom and rights just to benefit one group of Americans.

Choose wisely and vote. Vote for the rights of America and all Americans.

Written by Holly Leano - REALTOR and Sr Mortgage Consultant

Subscribe to my Newsletter

Paulson: Rescue to cost ‘hundreds of billions’

What is the root cause of our current economic financial downturn. Paulson: \’Decisive action is needed\’

Greedy people. Greedy selfish people who do not care what happens to anyone else but themselves. Now the Feds are working on bailing them out of their greed! Unacceptable!! Not only do we tax payers get hit, The United States is hit as a whole with higher interest rates on borrowed foreign currency.

http://www.msnbc.msn.com/id/26787984?GT1=43001

As a Realtor i work full time, ethically and responsibly to help my clients afford a home.

However honesty and integrity is not a trait that all Realtors are born with. Perhaps the Feds should check the DNA of all new Realtors while fingerprinted. That might cut down the number of people jumping onto the Real Estate bandwagon with disillusioned ideas of making big money off their clients without accountability for their unethical real estate practices.

Let me not stop here. A word to all financial institutions (Countrywide for example) please take responsibility for your shady loan programs. You provided everyone with bait to walk down a path of no return and then washed your hands claiming that we all should have known. Known what?? That financial institutions do not have our best interests at heart?

Buyers and Sellers (yes you too), do not blame all Realtors as the cause for your bad choices. Yes I will admit there have been many Realtors and Loan Officers who have been part of the reason why you have lost your assets. But in all honesty, it is your fault too. You made the decision to listen to their advise.

Education is key to making all decisions. I am a firm believer of this concept and will take the time to educate all my clients so they can make sound financial choices. If you are looking for a Realtor who really cares about her clients, look no further. Call me!

Written by Holly Leano - REALTOR and Sr Mortgage Consultant

Subscribe to my Newsletter

Shopping for a Loan Officer in todays real estate market

“Am I approved yet?” says Mr. Smith.

Loan Officer - “Well, no, Mr. Smith. I need to have a complete loan application filled out before I can qualify you for a loan.”

“Why does it take so long?” says Mr. Smith “I just walked into my bank and they approved me on the spot at 5%. If you can match this rate, you can be my loan officer.”

My dear readers, if he was already approved, why he is asking me to help him is a question that I hope to be able to respond to by the end of this article. The truth of the matter is that any loan officer can quote a rate off the top of their head to win over the borrower. But until the loan is fully processed, submitted to the lender, underwritten and the rate locked, the loan is not fully approved. Here are some factors that the average borrower should consider when ‘shopping’ for a loan officer:

When the loan officer takes a loan application, within three days, the borrower must be given a copy of the GFE (Good Faith Estimate) and Truth in Lending (APR) disclosure. If the borrower does not receive these documents, I can almost accurately predict one of two outcomes have taken place. The first being, the loan officer is not following the rules of RESPA (Real Estate Settlement Procedures Act). Secondly, the loan officer does not what to scare the borrower off by disclosing all the fees upfront.

Being that the fee disclosure sheet is an estimate, these are some of the fees you can expect to see at close of escrow i.e. loan origination points charged up front, rebates paid to the loan officer by the lender, escrow, title, appraisal, credit report, property insurance and taxes to be impounded, to name a few.

Yes all these fees should be disclosed because they are indeed a cost that is involved with any purchase or refinance loan. Mortgage brokers often charge brokerage fees but banks do not. Mortgage brokers have access to many lenders who sell loans at wholesale rates. This gives the loan officer flexibility to find a loan that will work best for the borrower without being tied down to the rates of just one lender.

I know that this is a lot of information for the average borrower to consider when ‘shopping’ a loan officer. But could this lack of knowledge be the reason for so many borrowers falling into foreclosure? Could a false sense of security be driving borrowers to find a loan officer who will tell them what they want to hear? In answer to this question, all I can say is this:

Loan Officer “Mr. Smith, how much are you willing to pay for first class service? I won’t cut costs. Nor will I quote a rate that does not exist. What I will do is listen to your needs, keep you informed and provide you with service that is second to none.”

Written by Holly Leano - REALTOR and Sr Mortgage Consultant

Subscribe to my Newsletter

Current foreclosure crisis does not affect your ability to get a loan!

Can’t get a loan to buy a house? Whose fault is it?

There seems to be an epidemic of misunderstanding with the foreclosure market and mortgage loans. That being, today’s buyers are unable to qualify for mortgage loans like the ‘good old days’. Now there are so many rules and regulations, apparently buyers feel that they are getting the short end of the stick. With the number of homes in foreclosure flying off the shelf at ridiculously low values, it’s amazing that more buyers are not getting approved for loans in droves.

The rumor going around is that the people to blame for the ‘rules and regulations’ to get a loan are those who have gone into foreclosure, hence why banks and mortgage lenders are giving everyone a ‘hard time’.

Oddly enough I thrive on such idiosyncrasies of society’s current mortgage dilemma. It gives me a forum to spout my brand of wisdom about this situation and divulge an amazing secret to all who choose to listen.

The secret is - There have always been rules and regulations!

So what or who shall I say is to blame for why buyers are finding it harder to qualify for a mortgage loan today.

Owning a home is the American dream. But in actuality it is not for everyone. Buying a home is the largest financial purchase you will make in your life. It is not a purchase that you can turn around the next day and return the keys and walk away. There are consequences.

The solution to the foreclosure epidemic lies in being accountable. Anyone can qualify for a mortgage loan. How you apply for a loan and what you or your loan officer provides to suffice the rules and regulations of the lender is key to the final outcome of whether you’ll still be making mortgage payments in six months or bailing ship into the murky foreclosure market.

Remember the old adage ‘rules are meant to be broken’? Herein lays the answer to the question of who is to blame. Rules and regulations are broken in one way or another on a daily basis; take jay walking for example. Whether one chooses to accept responsibility for these actions is an ethical issue that few will acknowledge.

So we are all left to face this problem together as homes go into foreclosure and existing home owners watch their equity drop lower and lower each week. My best advice to you my avid blog readers, the next time any of you wish for lower interest rates and a carrot worth 1% is offered to you, stop and read the fine print!

Written by Holly Leano - REALTOR and Sr Mortgage Consultant

Subscribe to my Newsletter

Deal or No Deal: How to Beat the Real Estate Market

Source : www.americanchronicle.com

The question on everyone’s mind is, “Has the market bottomed out?” People want to know if now is the time to buy a home or if they should wait for further declines in home values.

Many have heard the old adages, “Buy low and sell high.” and “Buy when everyone else is selling and sell when everyone else is buying.” It’s easy to forget this timeless advice, though, when every day there is another expert hyping the decline of the housing market.

Remember: No one was able to predict the peak and no one can predict the bottom.

Stop waiting for the media to predict the bottom of the market. By the time they do, it will be too late for the average person to take advantage of the situation.

A sound and easy real estate investing strategy is to sell before the peak and buy before the bottom. This is easy to understand but harder to apply because the tendency is to get greedy. The desire to sell at the absolute peak and buy at the very bottom distracts most investors. Unfortunately, most people end up selling for much lower than the peak and buying much higher than the bottom.

So what happens if you buy now? You’ll take advantage of low interest rates and a lot of inventory, and since there is little competition, you will probably be able to negotiate a great bargain.

What if the market goes lower? Chances are it won’t, but even if it does, it probably won’t go significantly lower. The bigger risk is in the market improving. Buyers who are sitting on the sidelines will jump in, and the increase in competition will mean less opportunity to negotiate a great deal.

This is the best home buying opportunity of the past several years. Don’t get caught missing out. Take the deal!

Buying Foreclosures / Bank Owned Properties / REOS

Hi Holly,

Can you help me buy a bank owned property? Can I buy it with no money down and will the seller pay for all my closing costs and repairs? I appreciate any advise you can provide. ~ AB, Chula VIsta

Dear AB,

This is an excellent question. What I would first like to do is break up your question into four parts.

Question 1. Holly can you help me buy a bank owned property?

Answer – Yes I most certainly can help you buy a bank owned property.

But first I need to find out if you are currently working with another Realtor and/or Mortgage loan officer. If yes, have you signed a buyer/broker agreement with this person? If you have signed an agreement with another Realtor, I strongly suggest you make an appointment with your Agent and let him/her know that you need help to buy a bank owned property. You are paying your Realtor to provide you with professional service. I am certain they would not appreciate another Realtor advising their clients.

However, if you are looking for a Realtor and/or Mortgage loan officer right now, I would be most happy to work for you. I will require a buyer/broker agreement to be signed up front. This shows me that you are serious about working exclusively with me. Upon establishing an exclusive agreement, the next step will be for me to establish your goals. These are some of the questions I will be asking – Are you a first time home buyer? Are you buying this home by yourself? Have you already been approved for a mortgage loan and do you have at least 5% to 10% to put down towards the loan? Which areas are you interested in looking at so that I may begin researching homes for you.

Question 2. Can I buy a home with no money down?

Answer - Truthfully AB, with the declining real estate market and the number of people who have defaulted on their loans, many lenders are not very confident in lending their money to borrowers for the entire loan. I anticipate that lenders will be asking for 5% to 10% as a down payment for all purchase loans. In fact some are only accepting borrowers who have 20% down towards the loan. Mortgage Insurance will apply for all loans that are more than 80% of the value of the home. The lender will ask for an impound account for taxes and hazard insurance. To avoid mortgage insurance you could opt for the two mortgage route i.e. a 1st mortgage up to $417,000 (Conforming loan limits) and a 2nd mortgage loan for the balance of the purchase price. So in answer to your question Angie, No, you will not be able to get a purchase loan with no money down at this time.

Question 3. Will the seller pay for all my closing costs and repairs?

Answer - The seller is not obligated to pay for your closing costs. However an offering to cover a certain percentage of a buyer’s closing costs, can help make the sale more attractive to a buyer who has limited funds. Typically the amount a seller can offer to pay towards buyers closing costs is stipulated by the lender. Based on the loan amount, the lender will allow either 3% or 6% of the purchase price to be given to the buyer for closing costs. That means, if the seller’s offering does not cover the entire buyer’s closing costs; the buyer will have to cough up the difference in order to close escrow.

With regard to repairs, when buying a foreclosure / bank owned property, the Seller in this case, has not lived in the property. Therefore the Seller does not have to fill out a transfer disclosure statement. Nor does the Seller need to carry out an inspection of the property or pay for any repairs that may be obviously or not obviously inherent in the property.

I cannot stress how important it is for all buyers to do their homework before taking a dive into the real estate market. Inspections, title research, checking for building permits, talking to neighbors about the home for sale are just some of the things a serious buyer must do to ensure the biggest purchase of their life is both personally and financially rewarding in the years to come.

AB I hope I answered your questions. Now is the best time to buy a home. You are doing the right thing by doing your research before buying a home

Written by Holly Leano - REALTOR and Sr Mortgage Consultant

Subscribe to my Newsletter