Guess what!! You could have oil in your backyard.

How will you know if you are the ‘oh so privileged one’ to have the honor of ‘drill baby drill’ in your own backyard?? Well, when you buy a home, be sure that the Seller provides you with a Natural Hazard Disclosures. JCP-LGS Disclosures.com and First American Natural Hazard Disclosures (FANHD) are sending this Disclosure Alert to keep you informed of important information regarding environmental hazard disclosures. These disclosures are based on a 1/4-mile radius around the property. If the property you are buying has O&G (O&G Wells) or if your neighbor has O&G, you’ll know. This Public Record is the statewide well database maintained by the California Department of Conservation. Each well found in the search is listed along with its well-identification number, well owner, well status, and State contact information.

It is important to note that these disclosures are not mandated regardless how significant these environmental issues are at this time. Currently, California ranks fourth in the nation among oil producing states, and nearly 200,000 wells are distributed among 45 of California’s 58 counties.

O&G well proximity is an important material fact in a residential transaction. Potential hazards associated with wells include, but are not limited to, soil and groundwater contamination, methane seeps, fire hazards, air quality issues, and physical safety concerns. In addition, a land owner may be financially responsible for the cost of plugging a well that was not safely abandoned by a previous owner.

Source - Visit the link below to view a sample of the new O&G Well disclosure:
http://www.disclosures.com/Portals/0/fanhd/pdf/OandGwell_disclosure_SAMPLE.pdf

Holly Leano - REALTOR and Sr Mortgage Consultant

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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

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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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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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Ideas? Renovate your fireplace, the walls both inside and out, maybe a low wall that separates the patio from the garden.

Check out Cultured Stone @ http://www.culturedstone.com/ or
Eldorado Stone @ http://www.eldoradostone.com

Let me know what you think!

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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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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Jolie and Pitt’s new home in France (see video)

Looking for a home that provides the utmost privacy. How about a house in the south of France complete with three-mile long driveway, lake with a moat and your very own forest on 1,000 acres of land. For just $70 million, you too could own a home like this. Here’s to the old adage ‘you snooze you loose’. Angelina Jolie and Brad Pitt beat all of ya to this 35 bedroom haven. And the icing on the cake, they’re neighbors with Johnny Depp, Vanessa Paradis and U2’s Bono. You couldn’t have a nicer set of neighbors. ~ Holly Leano REALTOR

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

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]]> http://www.hollyleano.com/blogholly/index.php/2008/05/28/shopping-for-a-loan-officer-in-todays-real-estate-market/feed/ http://www.hollyleano.com/blogholly/index.php/2008/05/19/credit-card-companies-boosting-your-rate/ http://www.hollyleano.com/blogholly/index.php/2008/05/19/credit-card-companies-boosting-your-rate/#comments Mon, 19 May 2008 17:36:33 +0000 holly http://www.hollyleano.com/blogholly/?p=29 Source www.suzeorman.com