Dec
07
Posted under
Credit / Your Fico Score,
Foreclosures / Bank Owned / REOs,
How to buy a house,
Mortgage Purchase Loans,
Mortgage Refinance,
What is the value of my home? Short sales are on the rise as more homeowners struggle to decide between keeping their home and selling their home for less than what it is worth.
A seller opts for a short sale when they have established financial hardship. This means the seller is unable to keep up with the payments of the mortage even with a loan modification. As a result, they begin to fall behind on their payments.
In order for a short sale process to begin, the homeowner must be able to provide financial proof of hardship. All documentation must be submited to the mortgageor for review. Some of the documents include a hardship letter, 2 years of tax returns, financial worksheet, bank statements and paystubs.
While a short sale will affect the sellers credit, the impact is less than a foreclosure. The bank has to approve the short sale for a settlement that is less than what is owed. The benefit of selling a home through a short sale is the opportunity to obtain a new loan in a shorter period of time than with a traditional foreclosure.
If you are considering a short sale, I would like to invite you to call me for a free consultation. The process is very involved and requires a lot of time, patience and strong negotiation skills. Most importantly, the seller must be 100% committed to the process.
At Slavens Realty I pride myself on the quality of service I provide. My administration set up fee is a non-refundable $550. In the event the short sale is approved and you, the seller, do not agree to the terms offered by the bank, you do not have to accept the short sale and may opt to foreclose. If this happens, the only fee paid to me, the listing agent, is $550.
In the event you accept the banks offer and the house is sold by a short sale, commission to me and the buyer’s agent will be paid through the sale of the property.
While there are many Realtors who are willing to accept the short sale listing for free, I am confident that my fee of $550 will be the best money you spend for helping you resolve one of the biggest financial decisions in your life.
I am committed to service and to helping you find peace of mind through these difficult times.
Do call me, Holly Leano at 619-370-2417
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Oct
05
Posted under
Credit / Your Fico Score,
Foreclosures / Bank Owned / REOs,
How to buy a house Three years ago, when the home-sale market peaked, buyers frequently bought “as is” regarding deferred maintenance, like wood-destroying pest or “termite” work.
Home prices were rising in many areas, and buyers were flush with cash and could line up a mortgage even if they didn’t qualify. Today, prices are still declining with a few exceptions; many buyers are cash-strapped; and they need to put more cash down and go through a rigorous qualifying process to get a mortgage.
In the hot seller’s market of several years ago, many sellers invested money to make their homes look pretty in order to attract multiple buyers and drive the sale price up. But they usually didn’t spend much curing deferred maintenance, because buyers bidding in competition often bought “as is.” Sellers focused their fix-up-for-sale efforts on cosmetics — paint, staging, and replacing outdated light fixtures and flooring.
HOUSE HUNTING TIP: A home still needs to look good to sell in today’s market. However, a difference between this and the previous market is that a property that has a lot of deferred maintenance can be hard to sell unless the price is discounted significantly. And, even at a discounted price, it may be impossible to sell if there is a lot of inventory of similar homes on the market that don’t require as much work.
One issue from the buyers’ perspective is the hassle of getting the work done. A more restrictive concern is finding the cash to pay for the work.
The ideal way around this problem is to have defects that might impede the sale of your home corrected before you put your home on the market. This requires planning in advance and finding a way to pay for the work.
Sellers who don’t have cash readily available should look into using a home equity line of credit (HELOC). For instance, Charles Schwab offered a HELOC with an interest rate of 3.99 percent as of mid-May 2009. However, there must be sufficient equity in the property to qualify for a HELOC.
Marketing a listing with a clear “termite” report or a new roof can help sell your home. Buyers don’t have to worry about how they’ll pay for these necessary repairs because the work has already been done.
Sellers may object to paying to correct defects on a home they’re leaving. However, home maintenance is an integral part of homeownership. Sellers who keep their homes well maintained usually don’t have a large deferred-maintenance bill when they sell.
It’s wise to have presale wood-destroying pest and home inspections done months before you plan to sell. Ask the inspectors and your real estate agent to help you prioritize the work that needs to be done. Then, take the most cost-effective approach.
For example, if the roof is old, you could replace it. But, if it’s not leaking, and a roofer says the roof is serviceable, consider doing a roof maintenance that might include replacing cracked and missing shingles, sealing vent pipes and skylights, and replacing deteriorated gutters and downspouts.
If all the wood-pest work doesn’t need immediate attention, do the work that’s critical, like a deck that’s deteriorated to the point that it’s dangerous. At least the buyers won’t have to worry about how they’re going to find the cash to have the work done soon. They can save over time and budget for than less urgent items.
THE CLOSING: Another argument in favor of correcting glaring defects before you sell is that even if the buyers accept the property in its present condition, the appraiser might not. Then you’d have to try to get the work done before closing or lose the deal.
Written by Dian Hymer is a nationally syndicated real estate columnist and author.
Jun
19
Posted under
How to buy a house,
Mortgage Purchase Loans Below is information outlining HOW the $8K Federal Tax Credit works. Obama is not giving you a hand out of cash for you to do what ever you want with it. Get your facts straight. I’m sorry that I have to say this because there are too many people out there regurgitating information incorrectly. So please read the information below and if you don’t understand a word, post me a message!
FHA Allows Tax Credit As Down Payment
The Federal Housing Administration (FHA) laid out the details of a new policy [Mortgagee Letter 2009-15] on Friday that will allow first-time home buyers to apply the $8,000 federal tax credit toward the purchase costs of an FHA-insured home. HUD Secretary Shaun Donovan said he expects the action to stimulate home sales across the country.
The American Recovery and Reinvestment Act of 2009, enacted under President Obama, offers home buyers a tax credit of up to $8,000 for purchasing their first home before December 1, 2009, but the credit can only be accessed after filing an amended tax return with the Internal Revenue Service (IRS). However, the new FHA rules allow first-time home buyers using FHA-backed financing to obtain a short term loan from state housing finance agencies and certain non-profits for 10 percent of the home’s price, up to the full amount of the tax credit.
The Federal Housing Administration (FHA) laid out the details of a new policy [Mortgagee Letter 2009-15] on Friday that will allow first-time home buyers to apply the $8,000 federal tax credit toward the purchase costs of an FHA-insured home. HUD Secretary Shaun Donovan said he expects the action to stimulate home sales across the country.
The American Recovery and Reinvestment Act of 2009, enacted under President Obama, offers home buyers a tax credit of up to $8,000 for purchasing their first home before December 1, 2009, but the credit can only be accessed after filing an amended tax return with the Internal Revenue Service (IRS). However, the new FHA rules allow first-time home buyers using FHA-backed financing to obtain a short term loan from state housing finance agencies and certain non-profits for 10 percent of the home’s price, up to the full amount of the tax credit.
Home buyers must come up with the initial FHA-required 3.5 percent down payment themselves, and can then use the tax credit loan to make a larger down payment or cover other closing costs – which in turn could help them qualify for a lower interest rate. The loan is repaid a few months later, after the buyer receives the tax credit from the IRS.
Donovan called the tax credit down payment a win for everyone and an important step toward accelerating the recovery of the nation’s housing markets. “Families will now be able to apply their anticipated tax credit toward their home purchase right away,” Donovan said. “[The new tax credit allowance] will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
The Federal Housing Administration (FHA) laid out the details of a new policy [Mortgagee Letter 2009-15] on Friday that will allow first-time home buyers to apply the $8,000 federal tax credit toward the purchase costs of an FHA-insured home. HUD Secretary Shaun Donovan said he expects the action to stimulate home sales across the country.
The American Recovery and Reinvestment Act of 2009, enacted under President Obama, offers home buyers a tax credit of up to $8,000 for purchasing their first home before December 1, 2009, but the credit can only be accessed after filing an amended tax return with the Internal Revenue Service (IRS). However, the new FHA rules allow first-time home buyers using FHA-backed financing to obtain a short term loan from state housing finance agencies and certain non-profits for 10 percent of the home’s price, up to the full amount of the tax credit.
Home buyers must come up with the initial FHA-required 3.5 percent down payment themselves, and can then use the tax credit loan to make a larger down payment or cover other closing costs – which in turn could help them qualify for a lower interest rate. The loan is repaid a few months later, after the buyer receives the tax credit from the IRS.
Donovan called the tax credit down payment a win for everyone and an important step toward accelerating the recovery of the nation’s housing markets. “Families will now be able to apply their anticipated tax credit toward their home purchase right away,” Donovan said. “[The new tax credit allowance] will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
Donovan added that the agency was also putting safeguards in place to ensure home buyers are protected from unscrupulous lenders. He said that unlike seller-funded down-payment assistance, which was a vehicle for abuse, the new program will allow home buyers to shop for the best home price and services using their anticipated tax credit.
For every FHA borrower who is assisted through the tax credit program, FHA said it will collect the name and employer identification number of the organization providing the service, as well as associated fees and charges. The agency said it will use this information to track the business closely and will refer any questionable practices to the appropriate regulators.
Sincerely,
The Federal Housing Administration (FHA) laid out the details of a new policy [Mortgagee Letter 2009-15] on Friday that will allow first-time home buyers to apply the $8,000 federal tax credit toward the purchase costs of an FHA-insured home. HUD Secretary Shaun Donovan said he expects the action to stimulate home sales across the country.
The American Recovery and Reinvestment Act of 2009, enacted under President Obama, offers home buyers a tax credit of up to $8,000 for purchasing their first home before December 1, 2009, but the credit can only be accessed after filing an amended tax return with the Internal Revenue Service (IRS). However, the new FHA rules allow first-time home buyers using FHA-backed financing to obtain a short term loan from state housing finance agencies and certain non-profits for 10 percent of the home’s price, up to the full amount of the tax credit.
Home buyers must come up with the initial FHA-required 3.5 percent down payment themselves, and can then use the tax credit loan to make a larger down payment or cover other closing costs – which in turn could help them qualify for a lower interest rate. The loan is repaid a few months later, after the buyer receives the tax credit from the IRS.
Donovan called the tax credit down payment a win for everyone and an important step toward accelerating the recovery of the nation’s housing markets. “Families will now be able to apply their anticipated tax credit toward their home purchase right away,” Donovan said. “[The new tax credit allowance] will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
Donovan added that the agency was also putting safeguards in place to ensure home buyers are protected from unscrupulous lenders. He said that unlike seller-funded down-payment assistance, which was a vehicle for abuse, the new program will allow home buyers to shop for the best home price and services using their anticipated tax credit.
For every FHA borrower who is assisted through the tax credit program, FHA said it will collect the name and employer identification number of the organization providing the service, as well as associated fees and charges. The agency said it will use this information to track the business closely and will refer any questionable practices to the appropriate regulators.
According to estimates by the National Association of Home Builders, the administration’s home buyer tax credit will stimulate 160,000 home sales across the nation – 101,000 of which will be first-time buyers who will receive the credit, and 59,000 existing homeowners who will be able to buy another property because a first-time buyer purchased their home. Given FHA’s current market share, HUD estimates that thousands of families will be able to snag their American dream by applying the anticipated tax credit toward their purchase of an FHA-insured mortgage.
Some individual states, including Colorado, New Jersey, New Mexico, Ohio, and Pennsylvania have already instituted their own programs which provide down payment loans for the federal tax credit. Home builders and Realtors alike have been strong proponents of a more widespread initiative, such as has been put in place by the FHA.
The Federal Housing Administration (FHA) laid out the details of a new policy [Mortgagee Letter 2009-15] on Friday that will allow first-time home buyers to apply the $8,000 federal tax credit toward the purchase costs of an FHA-insured home. HUD Secretary Shaun Donovan said he expects the action to stimulate home sales across the country.
The American Recovery and Reinvestment Act of 2009, enacted under President Obama, offers home buyers a tax credit of up to $8,000 for purchasing their first home before December 1, 2009, but the credit can only be accessed after filing an amended tax return with the Internal Revenue Service (IRS). However, the new FHA rules allow first-time home buyers using FHA-backed financing to obtain a short term loan from state housing finance agencies and certain non-profits for 10 percent of the home’s price, up to the full amount of the tax credit.
Home buyers must come up with the initial FHA-required 3.5 percent down payment themselves, and can then use the tax credit loan to make a larger down payment or cover other closing costs – which in turn could help them qualify for a lower interest rate. The loan is repaid a few months later, after the buyer receives the tax credit from the IRS.
Donovan called the tax credit down payment a win for everyone and an important step toward accelerating the recovery of the nation’s housing markets. “Families will now be able to apply their anticipated tax credit toward their home purchase right away,” Donovan said. “[The new tax credit allowance] will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
Donovan added that the agency was also putting safeguards in place to ensure home buyers are protected from unscrupulous lenders. He said that unlike seller-funded down-payment assistance, which was a vehicle for abuse, the new program will allow home buyers to shop for the best home price and services using their anticipated tax credit.
For every FHA borrower who is assisted through the tax credit program, FHA said it will collect the name and employer identification number of the organization providing the service, as well as associated fees and charges. The agency said it will use this information to track the business closely and will refer any questionable practices to the appropriate regulators.
According to estimates by the National Association of Home Builders, the administration’s home buyer tax credit will stimulate 160,000 home sales across the nation – 101,000 of which will be first-time buyers who will receive the credit, and 59,000 existing homeowners who will be able to buy another property because a first-time buyer purchased their home. Given FHA’s current market share, HUD estimates that thousands of families will be able to snag their American dream by applying the anticipated tax credit toward their purchase of an FHA-insured mortgage.
Some individual states, including Colorado, New Jersey, New Mexico, Ohio, and Pennsylvania have already instituted their own programs which provide down payment loans for the federal tax credit. Home builders and Realtors alike have been strong proponents of a more widespread initiative, such as has been put in place by the FHA.
Lawrence Yun, chief economist for the National Association of Realtors (NAR), says he expects to see more buyers step off the sidelines and enter the market now that they can use the $8,000 tax credit as a down payment. While he doesn’t anticipate an immediate pickup in the coming months, Yun believes early summer will be a critical indicator of homebuyers’ response to the new allowance.
“The home buying process takes time,” Yun said. “This summer will gauge the success of the first-time home buyer tax credit.”
Several House lawmakers have expressed their support of the home buyer tax credit and recently introduced bills that would expand its benefits. NAR said it commends these individual efforts but has not endorsed any particular approach, suggesting that taken together, all three bills would have advantageous effects on housing conditions nationwide.
Rep. Eddie Bernice Johnson (D-Texas) has introduced H.R. 2606, which would offer the credit to all home buyers, not just first-timers. The bill also extends the credit through the end of 2010 and eliminates the repayment mandate applicable to the $7500 tax credit from 2008.
H.R. 2619 has been put forth by Rep. Kenny Marchant (R-Texas). Marchant also wants to make the credit available to all purchasers and push out the expiration date, to June 30, 2010. In addition, this bill provides a temporary $3,000 tax credit that would refund the closing costs associated with refinancing a mortgage, as long as the new loan amount was no more than the original outstanding balance.
Rep. Ron Kind (D-Wisconsin) has proposed H.R. 2562, which would extend the tax credit through December 1, 2010, for those home buyers who served in the military for at least three months during 2009.
Apr
04
Posted under
Credit / Your Fico Score,
Foreclosures / Bank Owned / REOs,
How to buy a house,
Mortgage Purchase Loans,
Mortgage Refinance C.A.R. launches mortgage protection plan for first-time home buyers
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.
C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.
To qualify for the Mortgage Protection Program, applicants must:
· Be a first-time home buyer – someone who has not owned a home in three
or more years
· Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
· Use a California REALTOR® in the transaction
This is where I come in CALL HOLLY 619-370-2417<–
· Purchase the property in California <– CALL HOLLY
· Be a W-2 employee (cannot be self-employed)
To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.
REALTOR and Sr Mortgage Consultant
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