Existing-home sales fall 7.2% to 7-month low

Homes sales are on the decline. When will we get out of this slump. In an article written by Rex Nutting from Market Watch, we learn that the cheif economist of the real estate industry lobbing group, commented that ‘it’s not good news’. Where do we go from here? ~ Holly Leano

WASHINGTON (MarketWatch) – Resales of U.S. homes and condos fell 7.2% in January to a seasonally adjusted annual rate of 5.05 million, the lowest in seven months, the National Association of Realtors reported Friday. Sales of existing homes have fallen two consecutive months after rising steadily through the fall on the back of a federal subsidy for first-time home buyers. “It’s not good news,” said Lawrence Yun, chief economist for the real estate industry lobbying group. “There is rising concern about the strength of the housing recovery.” Inventories of unsold homes fell 0.5% to 3.265 million, or 7.8 months of supply at the current sales pace.

Holly Leano is #1 in Short Sales and REO

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

Four-Year-Old Got Homebuyer Tax Credit, Treasury Says

You give people an inch they take a mile. This is ridiculous!! The $8K Home buyer tax credit was to help first time home buyers. Instead 74,000 UN-ETHICIAL AMERICAN’S have found another loophole to rape the U.S. Government of money. 8000 have been flagged with potential criminal fraud. We are barely getting out of a huge mortgage debaucle and now this!!!

Intrafamily refi forgoes costs, hassle … maybe none..

Can’t sell your house? Can’t modify your loan? Have you thought of asking a family member to help you out? Read this question from Craig -

DEAR BENNY: I am looking into refinancing my Texas home from a 5/1 adjustable-rate mortgage to a fixed-rate. During this process my mother stated that she would lend me the $150,000 to pay off my existing loan and I would pay her back at the current market rate for a 30-year fixed. This would provide her a stable investment, and I can forgo the closing costs, paperwork, appraisal, etc., associated with a refi.

What are the legal implications of this transaction? If I pay off my current loan do I assume title? What paperwork do I have to sign with my mom to validate the transaction and where do we file it? She would have to claim the income; can I still write off the interest as I would do with any other home loan? Is this transaction as simple as it sounds? –Craig

Read full article – http://www.clientdirect.net/news/default.asp?PUB=6694&AID=2596002

Interest Rates are falling lower and lower..

If you haven’t jumpped on the bandwagon to buy a home today…. now is the time to do so. Interest rates are at an all time low of 4.25%. Guess what, i can get you that rate.

Read more on this exciting news, then call me to set up an appointment to start looking for homes.

http://hosted.ap.org/dynamic/stories/M/MORTGAGE_RATES?SITE=CARIE&TEMPLATE=BUSINESS.html&SECTION=HOME

REALTOR and Sr Mortgage Consultant

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C.A.R. launches mortgage protection plan for first-time home buyers

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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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

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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

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The buzz word is FHA – The conscience loan for Loan Officers.

The buzz word is FHA, Federal Housing Administration. 3% down towards a purchase of a home and like magic you are now approved to buy a home. What might surprise you is that it is not a new loan product by any standards. FHA has been around for a long time and one might consider it ‘the’ loan for the Loan Officer who has a conscience.

The sub-prime market of liar loans are falling by the way side. However there are still products out there that ask borrowers to just verify employment with a telephone call. The lenders are not asking to see paystubs or income taxes. I called a reputual bank (whose name I shall not devulge in this article) to ask this questions. The response I received was shocking!

The account executive informed me that they do not ask for paystubs or income taxes, they assume that the employment information provided by the Loan Officer on the form is correct. What the account executive actually meant is that they assume that the information provided is ‘the truth’.

So what about FHA loans and how can they help borrowers afford a home today. First of all federal legislation recently raised the FHA loan limits nationwide. Although this is just a temporary measure, FHA has opened the door for a large number of borrowers who need loans as high at $729,750.

The FHA does not lend money directly. It provides mortgage insurance (aka MI) to borrowers through private lenders. What this means to you is that the FHA is responsible for any defaulted loans.

Applying for an FHA loan is a long tedious process. Unlike sub-prime loans that slip through the cracks with no docs and stated income stated assets loans for example. FHA requires full documentation of income. Borrowers who can make at least a 3% down payment or have at least 3% equity in their homes can qualify for an FHA loan.

Written by Holly Leano – REALTOR and Sr Mortgage Consultant

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What is an Annual Percentage Rate (APR)?

Betcha didn’t know this. The annual percentage rate (APR) is different from the note rate. Period.

The APR does NOT affect your monthly payments. Your monthly payments are a function of the interest rate and the length of the loan.

The APR is commonly used to compare loan programs from different lenders.
It is designed to measure the ‘true cost of a loan.”

The Federal Truth in Lending law requires mortgage companies to disclose the APR when they advertise a rate.
It prevents lenders from advertising a low rate and hiding fees.

If life were easy, all you would have to do is compare APRs from the lenders/brokers you are working with, then pick the easiest one and you would have the right loan. Right? Wrong!

Unfortunately, different lenders calculate APRs differently! So a loan with a lower APR is not necessarily a better rate.

What I suggest is to ask the different lenders you’re calling on to provide you with a good-faith estimate of their costs of the same type of loan program eg 30-yr fixed with a 30-yr fixed rate at the same interest rate.

Then delete all fees that are independent of the loan such as homeowners insurance, title fees, escrow fees, attorney fees, Admin fees, Appraisal, credit report etc. Now add up all the loan fees. The lender that has lower loan fees has a cheaper loan than the lender with higher loan fees.

The reason why APRs are confusing is because the rules to compute APR are not clearly defined.

What fees are included in the APR?

The following fees ARE generally included in the APR:

Points – both discount points and origination points
Pre-paid interest. The interest paid from the date the loan closes to the end of the month. Most mortgage companies assume 15 days of interest in their calculations. However, companies may use any number between 1 and 30!
Loan-processing fee
Underwriting fee
Document-preparation fee
Private mortgage-insurance
The following fees are SOMETIMES included in the APR:

Credit life insurance (insurance that pays off the mortgage in the event of a borrowers death)

The following fees are normally NOT included in the APR:

Title or abstract fee
Escrow fee
Attorney fee
Notary fee
Document preparation (charged by the closing agent)
Home-inspection fees
Recording fee
Transfer taxes
Credit report
Appraisal fee

PLEASE NOTE!
An APR does not tell you how long your rate is locked for. A lender who offers you a 10-day rate lock may have a lower APR than a lender who offers you a 60-day rate lock!

Calculating APRs on adjustable and balloon loans is even more complex because future rates are unknown. The result is even more confusion about how lenders calculate APRs.

Do not attempt to compare a 30-year loan with a 15-year loan using their respective APRs. A 15-year loan may have a lower interest rate, but could have a higher APR, since the loan fees are amortized over a shorter period of time.

Conclusion :
There is no substitute to getting a good-faith estimate from each lender to compare costs. Remember to exclude those costs that are independent of the loan.

Written by Holly Leano – REALTOR and Sr Mortgage Consultant

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