tag:blogger.com,1999:blog-45535660016130689262024-03-05T09:52:17.703-08:00Amber RichardAmber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-4553566001613068926.post-65160735494381601672010-05-07T15:28:00.000-07:002010-05-07T15:30:34.930-07:00Job Gains in the U.S.This article came up in the wall street journal: http://online.wsj.com/article/SB10001424052748703338004575229932760855258.html<br /><br />Looks like the economy is getting better, good news for all and great news for real estate!<br /><br />The U.S. job machine finally slipped into gear last month, adding jobs at a pace last seen before the recession. Yet the unemployment rate also ticked up as the number of people seeking work surged, a sign that the economy isn't yet growing fast enough to sate the need for jobs. <br /><br />The Labor Department report, released Friday, showed jobs grew in a wide swath of the economy, from manufacturing to professional services, and offered reassuring signs that the U.S. economy is recovering. "We're on more solid ground after these data than we thought we were," said Alan Levenson, an economist for T. Rowe Price Associates. "That should reduce, at least at the margins, the concerns that ones might have had of the impact on our economy of what's going on in Europe."<br /><br />The government said 290,000 jobs were created in April and it revised upward by a total of 121,000 the gains for the previous two months. <br /><br />The jobless rate ticked up to 9.9% from 9.7% as 805,000 workers left the sidelines and entered or rejoined the labor force. The flood of new job seekers comes amid signs that employers are hiring, as often happens in the early innings of a recovery. "People are encouraged to come back in the labor force and start looking for jobs," said Julia Coronado, a BNP Paribas analyst. "It's good that they're not so discouraged anymore."<br /><br /><br />The employment numbers came a day after the Dow industrials took a harrowing 998.5 point plunge in a five-minute selloff. The WSJ's Dennis Berman, Evan Newmark and Dave Kansas discuss.<br />The positive U.S. job report came amid growing worries about the potential of a new downturn in Europe as that region grapples with a government-debt crisis that shows signs of reeling out of control. Europe's woes have cast a pall over global stock markets. The Dow Jones Industrial Average closed at 10380 on Friday, down 139.889 points, or 1.3%. Most economists still predict limited spillover from Europe, given that the pace of global growth, particularly in Asia, has quickened. But this could change if Europe's downturn intensifies or spreads to U.S. credit markets.<br /><br />The U.S. still has a long way to go to regain the nearly 8 million jobs wiped out since the recession hit: At the rate of job growth notched in April, it would take about 27 months just to restore those jobs, not to mention creating jobs for new entrants to the work force. In all, 15.3 million people were out of work and seeking jobs in April. Almost half of those who were unemployed, some 45.9%, had been out of work for 27 weeks or more. <br /><br />Nearly all of April's job gains came from private-sector hiring, not temporary government hiring for the 2010 Census. Rising private-sector hiring is crucial since it holds the potential to pick up the slack that will be created as the effects of government economic stimulus fade later this year.<br /><br />Who's Hurting?<br />View Interactive<br /><br />A look at job losses by sector, sex and race.<br />Professional and business services occupations led the job gains in April, adding 80,000 to its ranks. Accenture PLC, the consulting firm, is in the midst of hiring 50,000 employees globally—with 7,000 of those being added in the U.S.—by the end of August. The firm is hiring nearly twice as many workers as last year because of increased demand from clients, said John Campagnino, the company's senior director for recruitment.<br /><br />Manufacturing, which has been recovering fastest from the recession, added 44,000 jobs. Even construction, especially hard-hit during the downturn, saw payrolls rise by 14,000. Education and health services added workers as well. The government added 66,000 workers for the Census in April; some of that was offset by declining employment in state and local governments facing strained budgets.<br /><br />Baker Hughes Inc., a Houston-based oil-field-services company, was among those adding employees. Its business dropped precipitously last summer, after the number of working oil and natural gas rigs in the U.S. hit 876, down from 2,031 at its August 2008 peak. Baker Hughes thought the downturn would last for at least two years, says Paul Butero, president of U.S. land operations. So it shed 1,400 employees between mid-2008 and mid-2009, bringing its work force down to about 4,300.<br /><br />But by the third quarter of 2009, business had started to return, Mr. Butero says. "We expected a U-shaped recovery, but we had an immediate bounce back," he says. Now, there are 1,483 rigs running in the U.S., according to the company. "Our customers are very bullish. Activity is increasing every week," he says. <br /><br />U.S. Unemployment History<br />View Interactive<br /><br />And so is Baker Hughes's hiring. Between September and April, the company hired 539 employees, 45% of whom were previously laid off during the cutbacks. <br /><br />Among leisure and hospitality industries, which also faced declines during the recession as Americans cut back on travel and dining out, employment grew by 45,000 last month. <br /><br />One of those adding jobs in recent months was the Knowland Group Inc., a Salisbury, Md.-based small firm that makes business-development and sales software for hospitality businesses. The company has grown its work force to about 50 employees, from roughly 35 at the beginning of the year, said chief executive Michael McKean.<br /><br />"Last year was bad—it was catastrophic," Mr. McKean said. <br /><br />But now things are looking better: More clients are reporting business is improving, prompting the company to launch a new product in February that it had been putting off during the recession. "There's still pain out there, but it's turning," Mr. McKean said. "I think there are opportunities right now quite frankly."<br /><br />In a separate report, consumer credit—outside of real estate loans—increased at a 1% annual rate in March after declining in February and rising in January, the Federal Reserve said.Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com0tag:blogger.com,1999:blog-4553566001613068926.post-8950211376423316052010-04-11T17:55:00.001-07:002010-04-11T18:07:01.103-07:00HAFA Short Sale ProgramHAFA stands for Home Affordable Foreclosure Alternatives and is a part of Obama's Making Home Affordable program. The HAFA short sale program, effective from April 5, 2010, through December 31, 2012, is said to be the answer to the weary and long process that usually embody short sales. HAFA promises short sale approval within 10 days and gives the seller up to $1,500 in cash at closing. But because HAFA is a government-sponsored program, there are several steps that must be followed:<br /><br /><strong>step 1 - </strong><br />The first step is for a borrower to apply to HAMP, Home Affordable Modification Program. Here are the rules to be eligible for the HAMP program:<br /><br />a. Only personal residences are eligible. <br />b. The mortgage amount must be less than $729,750. <br />c. The borrower suffers a hardship such as loss of income, an increased mortgage payment or an unexpected increase of expenses. <br />d. The mortgage originated before January 1, 2009. <br />Te. he PITI mortgage payment, including HOA, is more than 31% of the borrower's gross monthly income.<br />(If any one of the 5 rules do not apply, then the borrower is not eligible for HAMP.)<br /><br /><br />If you are not eligible for HAMP, then you may need to find a short sale agent to help you. If you are eligible for HAMP, it does not mean that you will qualify for HAMP. Eligibility and qualification for HAMP are two different animals. Your goal, if you want to do a short sale, is to hope that HAMP will turn you down. Then you will be eligible for HAFA. Or, if accepted into HAMP, and you stop making your loan modification payments, you can apply to HAFA. This may sound like goofy rules, but it's the way our government works.<br /><br />I think it's interesting to point out that very few borrowers tend to qualify for a loan modification. Most short sales are for seller's who were rejected for a loan modification.<br /><br /><br /><strong>Step 2 -</strong><br />Determine if Your Lender Participates in the HAMP Program<br />It's important to know if your lender participates in HAMP, because lenders that participate in HAMP also participate in HAFA. All Fannie Mae and Freddie Mac lenders are required to participate. Here is a partial list of some of the big-name HAMP participating lenders:<br /><br /><br />Aurora Loan Services, LLC <br />Bank of America, NA <br />Chase Home Finance, LLC <br />CitiMortgage, Inc <br />Countrywide Home Loans Servicing, LP <br />EMC Mortgage Corporation <br />GMAC Mortgage LLC <br />Green Tree Servicing LLC <br />HomeEq Servicing <br />Horizon Bank <br />J.P.Morgan Chase Bank, NA <br />Litton Loan Servicing <br />Navy Federal Credit Union <br />Ocwen Financial Corporation, Inc. <br />OneWest Bank <br />PNC Bank, National Association <br />Saxon Mortgage Services <br />The Golden 1 Credit Union <br />US Bank, National Association <br />Wachovia Mortgage, FSB <br />Wachovia Bank, NA <br />Wells Fargo Bank, NA<br /><br /><strong>Step 3 -</strong><br />Eligibility Requirements for HAFA Short Sales<br />Once the borrower is rejected for a loan modification through the HAMP Program, the borrower is then eligible to apply to the HAFA Short Sale program or pursue a Deed in-Lieu-of Foreclosure. Since I don't know why anybody in their right minds would do a deed in-lieu, I'll stick to the short sale process. HAFA will preapprove the price of that short sale and give the seller 4 months to sell the property through a real estate agent. Here are the eligibility requirements:<br /><br /><br />a. Only personal residences are eligible. <br />b. The mortgage amount must be less than $729,750. <br />c. The seller must be 60 days behind on the mortgage. <br />d. The mortgage originated before January 1, 2009. <br />e. The seller was rejected by HAMP for a loan modification. <br />f. Sellers who have government loans do not qualify. <br /><br /><br /><strong>Benefits to a HAFA Short Sale</strong><br />- Second lenders can no longer try to force a seller to commit short sale mortgage fraud by demanding payments outside of escrow.<br />- Lenders that participate in HAFA waive the right to a deficiency judgment. <br />- Junior lenders can receive up to 3% of the loan balance or $3,000 maximum to release the loan. <br />- First lenders will receive a government payment of up to $2,000 to approve the short sale (on a 3-to-1 matching basis for paying up to $3,000 to each junior lender), and the investors receive up to an additional $1,500 to cover administrative costs. <br />- Sellers will receive a government payment of $3,000 at close of escrow to cover relocation expenses. <br />- Sellers will not be required to make a seller contribution. <br />- Lenders must agree not to foreclose during the short sale process.<br />- Another condition of HAFA is all parties must sign an arm's length affidavit. In other words, the seller cannot sell to a person the seller knows or to whom the seller is related. The buyer must also agree not to sell the property for a minimum of 90 days.Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com1tag:blogger.com,1999:blog-4553566001613068926.post-31141975253969945332010-04-02T12:41:00.000-07:002010-04-02T12:55:13.444-07:00Sample Hardship Letter & Sample Authorization Letter<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfxzj6tRnGs5WZlGxrzsCa7T9xmrmJXQK_yJYeu2WeRS-xxVNE_BWE4aHfz8szYh1yR26T_nFoKe5s-_QGewVj_Kb4AKWOaPmbeY3CI-g7ITjICgGfPc4N7M8bagn_EJAf3UWWwBeiaAw/s1600/hardship.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfxzj6tRnGs5WZlGxrzsCa7T9xmrmJXQK_yJYeu2WeRS-xxVNE_BWE4aHfz8szYh1yR26T_nFoKe5s-_QGewVj_Kb4AKWOaPmbeY3CI-g7ITjICgGfPc4N7M8bagn_EJAf3UWWwBeiaAw/s320/hardship.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5455631074391159698" /></a><br /><em>If you are applying for a short sale or loan modification, these samples may come in helpful for you. You will need to submit both of these letters in the beginning stages of the short sale or loan mod.</em><br /><br />Sample Hardship Letter for a Mortgage Modification<br /><br />Hardship Letter:<br /><br />XYZ Bank<br />Re: John Jones, 1234 Main Street, USA., loan number 123456789<br /><br />Gentlemen:<br /><br />This letter is to advise you that I can no longer make my monthly mortgage payments in the sum of $___________ as I my income has been reduced as a result of the economy and the value of my home has dropped by at least 50%. I would like to keep my home and I am asking for reduced monthly payments and interest rate over the life of the loan. I am also requesting a three month forbearance. [I recommend asking for a modification for the life of the entire loan, otherwise the lender may only give you a short term modification and that might not help you for a long enough period. The forbearance is asking the lender to forgive some of the debt.]<br /><br />Sample Authorization Letter<br /><br />[Only to be used if you authorize a third party such as a mortgage broker, attorney or housing counselor to negotiate your mortgage modification on your behalf]:<br /><br />To whom it may concern:<br /><br />We hereby authorize Jim Jones or any employees of the law firm of Jim Jones, address, telephone number, to represent us in connection with my loan number 124556789, in the name of John and Mary Smith regarding the property address: 123 Main Street, USA. You are hereby authorized to give Mr. Jones or any of his employees any information regarding my loan and loan balances.<br />Very truly yours,<br /><br />John and Mary Smith<br />[Include the last 4 digits of both borrowers’ social security numbers below the signature line or somewhere in the letter as well.]Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com2tag:blogger.com,1999:blog-4553566001613068926.post-28113953254436010162010-03-31T13:51:00.000-07:002010-03-31T14:04:22.659-07:00New FHA Lending PoliciesBecause I work with many first time buyers, FHA financing is something I see a lot. If you've been listening to the housing news, you've probably heard about some lending changes that were announced by the Federal Housing Administration (FHA). While many of the news reports were confusing, the truth is pretty clear...and isn't as bad as some people may have heard.<br /><br />Overall the measures announced by the FHA are intended to help the organization better manage its risks and strengthen its capital reserves, while still providing home loans to the nation.<br /><br />The good news, as FHA Commissioner David Stevens stated recently, is that "by continuing to provide affordable, responsible mortgage products, FHA will support the housing market's recovery" and "remain the largest source of home purchase financing for underserved communities."<br /><br />What's Changing?<br /><br />If you or someone you know is considering an FHA loan, some of these changes may affect you. Here's a clear, concise rundown of the major changes and what they mean:<br /><br />1. Increased mortgage insurance. The mortgage insurance premium (referred to as private mortgage insurance by many people) will be increased from 1.75% to 2.25%. This change will add some cost to purchasing a home, but will not overburden consumers since the mortgage insurance is paid over the life of the loan, rather than upfront at closing. This change will become effective on April 5, 2010.<br /><br />2. New down payment and credit score requirements. According to the new policy, homebuyers who have a credit score of at least 580 may still be able to purchase a home with 3.5% down, but those with credit scores of less than 580 will be required to put down at least 10%. This change is designed to help the FHA balance its risk, while still providing affordable down payments for consumers with a history of good credit and responsibility.<br /><br />3. Reduced seller concession. Basically, this change means that the person selling the home will now only be able to offer the homebuyer 3% to help defray closing costs, as opposed to 6% under the previous policy.<br /><br />In addition to these changes, the new policies contain a series of new measures aimed at increasing lender enforcement.<br /><br />The bottom line is that the changes will impact some homebuyers more than others. But in the end, the FHA is still committed to providing affordable home loans.<br /><br /><br /><br />Also, I am including a link from the FHA website which will easily allow you to navigate and gets all your questions answered:<br />http://www.fha.com/important_facts.cfmAmber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com0tag:blogger.com,1999:blog-4553566001613068926.post-70378423691773894872010-02-25T11:37:00.000-08:002010-02-25T11:43:02.558-08:00Short Sale Answers:Top 10 most frequently asked short sale questions.<br /><strong><br />What does Short Sale mean?</strong><br />A short sale simply means the amount of the existing mortgage is greater than the sales price of the home. A short sale would result. The mortgagee would accept the lesser amount and avoid the foreclosure proceedings. The balance of the loan would be forgiven by the lender.<br /><br /><strong>Why do lenders allow a short sale?</strong><br />Simple. The seller is out of the home the cannot afford and the lender avoids the costly foreclosure proceedings. <br /><br /><strong>If I have equity in my home, will my lender allow a short sale?</strong><br />Depending on the amount of equity, lenders may choose the traditional means of foreclosure. This may allow the lender to recapture some of the expense of the proceedings. Though on the other had, the home may be encumbered by other liens, and the inventory of homes may detour the lender from wanting to take title.<br /><br /><strong>Can I still profit on a short sale?</strong><br />No - Though the seller may have used the equity on a previous refinance or equity line, the current loan balance will be higher than the selling price of the home. A seller may not receive proceeds from a short sale.<br /><br /><strong><br />How much time do I have to start a short sale?</strong><br />In a Pre-foreclosure "Time is of the essence". Timelines starts from the date the notice to the borrower is filed. Each state has individual foreclosure laws and regulations. In some states a foreclosure can proceed as quickly as 35 days. Do not delay. In most cases you have no more than 60 days from the date of the notice, to contact lender to effectuate a lender approved short sale.<br /><br /><br /><br /><strong>Is there an application process to start a short sale? </strong><br />Yes - In basic terms you are applying for a short sale in much the same way you applied for your mortgage.<br />The individual short sale process will depend on the lender. Be prepared to submit a hardship letter detailing the circumstances behind the short sale; Current financial condition of the seller, ie; pay check stubs, bank statements, a personal financial statement. <br /><br />Additional, they may require a monthly budget assessment. Lastly, a signed, valid purchase and sales contract, preliminary HUD-1 settlement statement and a preliminary estimate of proceeds to the lender.<br /><br /><strong>How will a short sale affect my credit rating?</strong><br />Current estimate is -50 points. Each individual lender to decide what to report. Often it will note loan as "paid" on their credit report, while in the footnote it may reference "settled for less than amount owed". though it is a mark on the credit report, it is more favorable that "foreclosed" which is currently about -250 points.<br /><br /><strong>I have filed for bankruptcy, can I still do a short sale?</strong><br />Most lender would not consider a short sale if the homeowner is in the middle of a bankruptcy proceeding. A short sale by nature is a collection activity which is prohibited in a bankruptcy.<br /><br /><strong>Will I need an appraisal for a short sale?</strong><br />This is not on your list of things to do. Lenders vary on whether they will use a full appraisal or real estate BPO brokers price opinion to be submitted in the short sale package. All lenders will require a formal assessment of value of the home. Some will use more that one type of appraisal.<br /><br /><strong>What are the tax implications in the short of real estate?</strong><br />This is a biggie. Consult a tax accountant as each case varies. Generally, taxes are reported as a loss to the lender and a gain to the buyer. If the lender forgives 20K on your mortgage, you would receive a form 1099C in that amount as income, and responsible for paying the tax. <br /> <br />The mortgage forgiveness act of 2007 allows forgiveness of up to 2 million on the principal residence.<br /><br />This is purchase monies only. Meaning the mortgage you took out to purchase your home. Sellers need to understand that if you then took a HELOC (home equity line of credit) for other reasons (debt consolidation, college, home remodel etc) this money IS NOT purchase monies. Many lenders will require you to sign documents (promisory note) that you understand you are responsible for the deficiency / short fall.<br /> <br />Understanding the process is imperative to sellers and buyers alike. As a certified short sale and foreclosure resource I have the knowledge and expertise to help navigate and negotiate on your behalf.Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com0tag:blogger.com,1999:blog-4553566001613068926.post-15795271121572740442010-02-15T12:22:00.000-08:002010-02-15T12:23:11.397-08:008 REO Tips for Buying ForeclosuresLots of savvy home buyers want to hit the jackpot and buy that REO foreclosed home, many of which are often under-priced. When banks price REOs under the comparable sales, multiple offers are often the response. This means you could be up against stiff competition for that bank-owned home.<br />It's not unusual for some REO homes in Sacramento to receive 15 or 20 offers. Sometimes the bank will throw out all but two offers and then ask the selected buyers to resubmit what is called "Highest and Final" offer. Sometimes the bank simply accepts the best offer at inception.<br /><br />If you're wondering how you can make your offer shine above all the rest and be the winning offer, here are a few tips to help you select the right price and terms:<br /><br /><br />1) Get the Property History<br />Ask your buyer's agent to find out the bank's purchase price on the Trustee's Deed or Sheriff's Deed. Generally, it is noted on the document itself, which you can get from the tax rolls or a title company. Compare that price to the price the bank is asking.<br /><br />Look at the amount of loans that were once secured to the property. Somewhere between the original mortgage balance(s) and the foreclosure sale price is the amount the bank will accept, if the home is under-priced. <br /><br />2) Determine Comparable Sales<br />In many cases, the list price has little bearing on the value of the home. The market value carries the most weight. If you are up against competing offers, other buyers will offer more than list price.<br /><br /><br />Look at the last three months of comparable sales, a mini CMA, for that neighborhood to determine how much this REO is worth. Try to use only those homes that most closely match the REO regarding square footage, number of bedrooms, baths, amenities and condition. <br /><br />Look at the pending sales. Ask your agent to call the listing agents of those pending sales to try to find out the accepted offer price. Some will share that information and some will not.<br /><br />Look at the active listings. Those are most likely the listings other buyers will use to formulate a price because they are the only homes those buyers actually tour.<br /><br />3) Analyze Listing Agent's REO Solds<br />Most REO agents work for one or two banks. Some listing agents are exclusive listing agents for REOs, and they do not list any other type of property. Since REO agents deal in volume, they typically apply the same pricing principles to all their REO listings.<br /><br /><br />Ask your buyer's agent to look up the listing agent in MLS.<br /><br />Run a search using that listing agent's name to find the last three to six months of that agent's listings. <br /><br />Pull the history of those listings to determine the list-price to sales-price ratio. If most of those listings are selling for, say, 5% over list price, then you may need to offer 6% over list price, and vice versa.<br /><br />4) Ask About Number of Offers<br />If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price.<br /><br />If there are 20 offers, bear in mind that some of those offers might be all cash. Banks like all cash offers. If you are obtaining financing, then you may need to increase the price on your offer to be considered.<br /><br /><br />5) Submit Preapproval Letter<br />It goes without saying that you do not want a prequal letter. You want a preapproval letter. Get preapproved from your choice of lender in advance.<br /><br />Moreover, get preapproved by the lender who owns the property. Do not expect to use this lender for your loan, but submit the prepproval letter from this lender, along with the letter from your own lender. Banks don't trust other lender preapprovals but trust their own departments.<br /><br /><br />6) Don't Ask for Repairs / Inspections<br />Sometimes banks will pay for repairs, but typically will not agree to do so at the offer stage. If there are problems found during a home inspection, renegotiate after your offer has been accepted.<br /><br /><br />7) Shorten the Inspection Period<br />If other buyers ask for 17 days, for example, to conduct inspections, and you ask for 10, you will be deemed the more serious buyer. <br /><br />8) Offer to Split Fees<br />Some banks will not pay transfer fees, for example. If the buyer offers to split those fees, the bank will feel more amenable to accepting the offer. Same thing for escrow fees.<br /><br />Many banks negotiate discount fees for title insurance. If the bank will pay for the owner's policy, the ALTA policy might cost a bit more. But it's still a good idea to let the bank choose title if you want your offer accepted.<br /><br /><br />Consider the Appraisal Consequences<br />If you offer over list price, bear in mind that the appraisal will need to substantiate that price. If you find yourself dealing with a low appraisal, you have options, so don't despair. Remember, the bank will most likely run into this problem with the next buyer who obtains financing. <br /><br />Written By: Elizabeth WeintraubAmber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com1tag:blogger.com,1999:blog-4553566001613068926.post-67877014860031066122010-02-01T16:46:00.000-08:002010-02-01T16:51:15.394-08:002010 Predictions for the Inland EmpireFinally, there might be some good news for struggling homeowners. Thousands of mortgage loans that were supposed to reset at a higher rate this spring won’t be changing, putting off the grim threat of Inland Empire foreclosures or bankruptcy for many Americans by as much as a year. Unfortunately, the reprieve will only be a temporary one.<br /><br />A year ago, real estate forecasters were warning that spring 2009 would be the start of a whole new wave of foreclosures. Across the country option adjustable-rate mortgages (ARMs), an especially scary loan type often compared to a ticking time bomb, were set to detonate at an accelerating pace.<br /><br />But something happened that few could have predicted. Interest rates dropped to historically low levels and the wave of resets could now be delayed until well into 2010. As a result, many borrowers—who have the option of making payments so low that they don’t even cover the interest, which is then added to the original loan balance—now have some breathing room.<br /><br /> <br /><em><strong><br />Third of Loans Deeply Delinquent</strong></em><br />Credit Suisse (CS) estimates (click here to see the chart) that the resets will begin to accelerate next spring, rising from about $4 billion resetting in March 2010 to a peak of $14 billion in September 2011. The current level is about $1 billion. About $500 billion of option ARM loans are outstanding, according to the bank. “Things have gotten pushed out,” says Chandrajit Bhattacharya, director in U.S. Mortgage Strategy for Credit Suisse. “Right now it looks like the big increase is probably going to be somewhere toward the middle of next year.”<br /><br />Option ARMs typically reset after five years, at which point the monthly bill increases 65% or more. About 37.5% of option ARMs originated in 2005 are still outstanding, 63% of the 2006 vintage are outstanding, and 82% of the 2007 loans remain, according to Barclays Capital (BCS). And about a third of the outstanding loans in these years are deeply delinquent.<br /><br />In a given month, between 4% and 5% of borrowers who are current on their option ARMs taken out in 2006 and 2007 default in the following month, says Sandeep Bordia, Barclays’ head of residential credit strategy, who also expects resets to be delayed until next year. “These things have been performing horrendously,” Bordia said. “I don’t know how much of it will last into the recast.”<br /><br /><em><strong>Moving Out of Option ARMs</strong></em><br />But real estate analysts were predicting that many option ARMs would reset sooner as loan balances hit specified principal caps, typically 110% to 125% of the original principal. The decline in interest rates means that it would take much longer to hit the principal cap and many borrowers will instead face a reset only at the five-year mark.<br /><br />The Mortgage Bankers Assn. is also estimating that the lower interest rates will delay the resets. But the group also expects that lenders will help borrowers move out of the option ARM products before they reset. Many of the investors who can’t easily qualify for modifications and the borrowers beyond help have already lost their homes, says Michael Fratantoni, vice-president of single family research and policy development for the Mortgage Bankers Assn.<br /><br />And the homeowners who are holding option ARMs when the wave of resets hits won’t face as big a shock because interest rates have fallen, adds Fratantoni. “Interest rates have come down to the point where the resets that are going to occur are going to be a bit of a non-event,” he says. “Very few borrowers will experience the recast.” But Nicholas Chavarela, managing attorney for Orange (Calif.)-based America’s Law Group, which represents borrowers negotiating modifications, says banks remain reluctant to reduce principal for underwater borrowers.<br /><br /><em><strong>Cutting Debt-to-Income Ratios</strong></em><br />The Obama Administration’s loan modification plan, which only applies to owner-occupied homes, is a step in the right direction, Chavarela said. But lenders won’t do what’s needed unless they’re forced to, he said.<br /><br />Under the plan, taxpayers and participating lenders would share the cost of cutting borrowers’ debt-to-income ratio to 31%. Loans terms could be extended to 40 years and interest rates dropped to as low as 2%. But option ARM borrowers would likely have to pay more each month, even with a modification, because they’d suddenly be required to pay both interest and principal. “The Obama plan needs to be built upon,” Chavarela said.<br /><br />But even if they can refinance many borrowers can’t afford the higher payments. Philip Tirone, president of the Mortgage Equity Group in Los Angeles, said he reached out to borrowers with option ARMs, offering to help them refinance into a fixed-rate mortgage with a low interest rate. “For them, it’s all about the payments,” Tirone said.<br /><br /><em><strong>Time to Work with Lenders</strong></em><br />Keith Gumbinger, vice-president of HSH.com, a publisher of loan information in Pompton Plains, N.J., said the lower interest rates have helped to diminish the option ARM problem. But it remains unclear how many option ARMs are left to reset and how many borrowers will be able to get out of the loans before it’s too late. Moreover, by the time they do reset it is unclear whether the economy will be better off. If home values and unemployment continue to weaken, it will become even harder to refinance. But the delay in resets gives some motivated borrowers time to work with lenders and negotiate a solution.<br /><br />“I don’t think this is going to be the tsunami that was forecasted a few years ago,” Gumbinger said. “But it’s probably bigger than a ripple in a pond.”<br /><em><strong><br />If you are looking for a fresh start and want to get out of your Inland Empire home no matter the situation, email Amber4RealEstate@gmail.com or call 951-505-1195. The team at Prudential have had a ton of success negotiating short sales with banks and getting people upside down on their mortgage a fresh start.</strong></em>Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com0tag:blogger.com,1999:blog-4553566001613068926.post-88062004707059723782010-01-02T13:55:00.000-08:002010-01-02T14:04:27.515-08:00Loan Modification VS. Short Sale<strong>What is the difference between a loan modification and a short sale? </strong><br /><br />First of all, let me clarify the definition of a loan modification: A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford. There are many questions you may have specifically, so please see the link: http://www.hud.gov/offices/hsg/sfh/nsc/faqlm.cfm. A loan modification is used if you are behind on your mortgage and have been impacted by a financial hardship, it will save your home from entering foreclosure. The mortgage loan is restructed so that it becomes affordable and can fit within your budget. Obama presented this as part of his Homeowner Affordability and Stability Plan, in which he dedicated $75 billion. The plan states that the mortgage payments would stay below 38% of the borrowers gross income, and the government would pick up the rest of the tab. This lower payment comes from the mortgage interest rate going as low as 2%, the loan term being extended (up to 40 years), or having a loan principal at no interest. The loan servicer will be paid $1,000 for each modification and will get an additional $1,000 a year for up to three years. In order to qualify for a loan modification, the borrow must sign an affidavit of financial hardship and verify their income with documents. Loan mods used to be reserved for borrowers whose mortgages became deliquent because of job losses, divorce proceedings, or illness, but today they are also open to those individuals who are suffering in the aftermath of adjustable rate mortgages skyrocketing and placing the monthy payment beyond the means of the borrower. It is vital to begin the process as soon as possible when the damage to the budget and financial backup of the homeowner is still containd. The sooner a fixed rate can be negotiated, the better the odds of receiving a most benefical rate. Legal assistance during the process of applying for a loan mod is essential in the attempt to make the lender sit up and listen and provide the best possible solution for any homeowner before it's too late. In all, a loan modification should help save your budget, your home and your good credit. <br /><br />Now that I have addressed loan modifications, I will give you an overview of a short sale. Short sales happen when a lender agrees to accept less than the amount owed against the home because there is not enough equity to sell and pay all costs of sale. Not all lenders will negotiate a short sale. It used to be that lenders wouldn't even consider a short sale if your payments are current, but that has changed. Banks grant short sales for two reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth. A few examples of a hardship are: unemployment, reduced income, divorce, medical emergency, job transfer, bankruptcy, death. The seller will need to prepare a financial package for submission to the short sale bank. Each bank has it's own guidelines but the basic procedure is similar from bank to bank. The seller's package will most likely consist of: letter of authorization (allowing your agent to speak to the bank), HUD-1 (preliminary net sheet), completed financial statement, sellers hardship letter, 2 years of tax returns, 2 years of W-2's, recent payroll stubs, last 2 months of bank statements, comparative market analysis. <br />A short sale will affect your credit negatively, though not as badly as a foreclosure. Stil the lenders interpret a short sale as a customer did not pay as agreed, but the good news is a short sale will allow the consumer to obtain an institutional loan for a new home in two years. (As compared to a foreclosure, which will remain on a consumer's credit report in the public records section for 10 years). As far as FICO scores go, they are affected by: 1. serious deliquency 2. derogatory public record or 3. collection filed. A homeowners default is technically, "in collection." With a short sell, sellers will take a hit of 100 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380, although it may stay closer to 580 depending on the specific situation and how far behind you are on mortgage payments to determine exactly how it will affect your credit.Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com2tag:blogger.com,1999:blog-4553566001613068926.post-69998708973574351322009-12-14T18:26:00.000-08:002009-12-15T10:51:03.917-08:00Is home ownership right for you?<strong>The answer depends on your financial situation, your future plans, and what you hope to do for yourself and your family by buying and owning a home.</strong><br /><br />Let's start with your financial situation. Ask yourself the following questions:<br /><br /> - Do you have a steady, reliable source of income and a steady employment history for at least three years? <br /> - Do you have a good credit history and understand how to manage your credit? <br /> - Is your total debt manageable? Can you pay all your bills on time and still afford to take on the costs associated with homeownership? <br /> - Can you save money for a down payment and closing costs or you have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative? <br /> - Do you have adequate savings to weather an unexpected loss of income or an emergency? <br /><br />Next consider your future plans. Can you balance the costs of owning and maintaining a home (like repairs and maintenance) against other major expenses, such as buying a car, taking a vacation, saving for college or raising a family? <br /><br /><br />After looking at your financial situation and the costs of owning a home, consider how much you can afford to spend buying a house as well as the risks and rewards of becoming a homeowner.<br /><br />1.<strong> Why Own?</strong><br /><br />While homeownership comes with many responsibilities that you need to be aware of, most financial advisers say there are also many advantages.<br /><br />You'll have a place that is yours!<br />Homeownership provides shelter and security for you and your family. You can pass your home down to your children, and their children, creating security for generations to come.<br /><br />You may have some tax benefits with homeownership. <br />Homeownership can reduce the federal income taxes you pay. You can deduct the interest on your home mortgage and property taxes you pay on your home on the tax returns you file each year. These tax savings may offset a portion of the cost of owning your home. While tax savings can reduce the cost of homeownership over time, you still need to make sure you can afford the monthly mortgage payments.<br /><br />Your monthly payments will remain stable if you choose a fixed-rate mortgage! <br />If you choose a mortgage with a fixed-interest rate (one that stays the same for the life of the loan, say 30 years), you'll pay the same mortgage payment each month for the entire 30 years of the loan (but remember if your taxes go up, your escrow will go up – increasing your monthly payment).<br /><br />You'll contribute to your nest egg!<br />Owning a home can be a way to build long-term financial security and independence.<br /><br />But remember with all the benefits of homeownership comes responsibilities too – a mortgage, upkeep of a home and repair bills just to name a few.<br /><br />2. <strong>How Much Can You Afford to Spend on a Home?</strong><br /> <br />To get a very rough estimate of what you can afford to spend, multiply your annual gross income by 2.5. For example, if your annual household income is $50,000, you might be able to qualify for a $125,000 home. This is a very rough estimate – the actual numbers will vary based on different factors like current interest rates and your debt and credit history. Other factors to keep in mind are your current bills and overall debt, your current lifestyle and future plans. But the most important factor in determining how much you can afford is taking an honest look at what you can spend comfortably for your monthly housing costs.<br /><br />Mortgage lenders typically use two ratios to more accurately determine how much you can afford to spend on your mortgage.<br /><br /><em>Housing Expense Ratio</em><br />Mortgage lenders recommend that your monthly mortgage payment (principal, interest, taxes and insurance) be less than 28-31% of your monthly gross income. This percentage can change based on the type of mortgage you choose and sometimes the area in which you're looking to buy.<br /><br /><em>Debt-to-Income Ratio</em><br />You need to factor your other debts into determining an affordable monthly mortgage payment. Mortgage lenders look at whether your total debt is larger than 30-40% of your monthly gross income. Remember, debt is not just credit cards and student loans. It can also include alimony, child support, car loans, and housing expenses.<br /><br />Talk to a mortgage lender or housing counselor who can help you better understand the guidelines or requirements. Before you talk to one, organize your financial picture by creating a budget. Don't forget that you also have to save for the down payment, closing costs, inspection costs, moving, and other related expenses.<br /><br />You should also take into account any future plans such as a wedding, college education or birth of a child that will impact your budget and how much you can spend on a home. It is important to be realistic – you don’t want to buy your dream home only to realize afterwards that it is more than you can comfortably afford.<br /><br /><em><strong><strong>Remember that the mortgage is not the only expense of homeownership. Other expenses include:</strong></strong></em>-homeowner's insurance <br />-interest and taxes (which may be factored into your monthly mortgage payment) <br />-maintenance costs <br />-utilities <br />-water and garbage services <br />-unexpected repairs <br />-When deciding what you can afford, be sure to look at the big picture and not just the price of the home.<br /><br />Don't make the mistake of trying to buy more house than you can afford. Thinking that you can get by for a couple of years until your salary catches up with your monthly mortgage payment is setting yourself up for trouble. Instead, buy what you can comfortably afford today – not 5 years from now.<br /><br /><em>Don't be discouraged!</em><br />If what you can afford is less than the average single-family home in your area, look at townhouses, condos, and cooperatives – they're often less expensive.<br /><br />It's better to start small than to find yourself with a mortgage you cannot afford!<br /><br />3. <strong>What Are the Risks?</strong><br />Overall, homeownership is a good investment for most people, but there are risks. If you understand the benefits and risks of homeownership, you can make the best decision about when to buy a home.<br /><br />So what are the risks of homeownership?<br /><br /><em>Monthly housing expenses can increase.</em><br />Your monthly mortgage payment may be larger than your rent. While these higher monthly payments may be offset by a tax benefit at the end of the year, you will still need to make sure you can afford the monthly mortgage payments. Talk to a tax professional to understand your particular situation. Also, think carefully about introductory rates or low initial rates that allow you to buy a home you would not otherwise qualify for. When the rate increases you may find it difficult to make the monthly mortgage payment.<br /><br /><em>You become your own landlord.</em><br />If an appliance breaks, you will have to pay for its repair or replacement. You are also responsible for the maintenance and upkeep of your home and your property. Maintenance and upkeep affect your home's value so it is important that you have the budget to fix things in order to protect your investment.<br /><br /><em>You may need to sell your house due to life circumstances.</em><br />Depending on the local real estate market, you might not be able to sell your home quickly. You may also face additional expenses, such as hiring a real estate professional. Be sure you have adequate savings as a buffer before you buy a home in case you find yourself in this situation and cannot sell your home quickly.<br /><br /><em>Property values can depreciate.</em><br />You can lose value in your home for a number of reasons, such as a recession, the condition of your home not being kept up, or a drop in a neighborhood's home values. If your home loses value and you have to sell it for less than you owe, you will be required to repay the full amount you borrowed. Regardless of your home's value you still have the obligation to pay the mortgage even if the home is worth less than you paid for it<em>.<br /><br />Downsizing quickly may be difficult.</em><br />If you need to sell your home, it may take some time and you'll still be responsible for the mortgage until it is sold.<br /><br />Homeownership is still a great way to create equity for the future while providing stability and security for you and your family. But it is important to look at the benefits and risks and weigh them carefully before deciding if now is the time to become a homeowner.<br /><br />If you are already having credit or financial difficulties, take the time to work through those issues before starting the home buying process. You will be in a much better position to be a responsible homeowner and you will enjoy the benefits of homeownership much more!<br /><br /><strong>4. Myths About Homeownership</strong><br />How lenders assess mortgage applications has changed a lot since 2007. What was acceptable a few years ago may not be so today. The following are some common homeownership myths:<br /><br /><em>Myth: It’s a bad time to buy a house.</em><br />Fact: Mortgage rates for fixed-rate mortgages are at historical lows, creating stable payments and long-term savings for today's homebuyers and house prices have fallen at a record pace. Additionally, there is some financial relief for first-time homebuyers through the recently enacted Housing and Economic Recovery Act of 2008 and foreclosures have increased to record levels, leaving lots of housing supply on the market with unequalled demand. The combination of these factors generally equals greater affordability, and makes now a good time for many to consider homeownership.<br /><br /><em>Myth: Buying a house is just too risky; I'll end up in foreclosure.</em><br />Fact:The recent news on foreclosures is understandably frightening. Certainly if you lose your job, go through a divorce, or suffer an illness, you could have real trouble paying your mortgage, or rent for that matter. In recent years, we've even seen an increase in excessive obligation–just too many bills–as a reason for delinquency. While you can't always solve for the unexpected twists and turns of life, good budgeting and responsible credit practices can decrease the likelihood of a foreclosure. Also if you have trouble paying the mortgage, contact your lender immediately!<br /><br /><em>Myth: You can't buy a home in the U.S. if you're not a citizen.</em><br />Fact:If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid USCIS card or, a "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.<br /><br /><em>Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage.</em><br />Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. You'll likely need to keep records showing a history of payments you've made for items such as rent, utilities, and car payments.<br /><br /><em>Myth: Lenders share your personal financial information with other companies.</em><br />Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don't want it to be shared. If you are unsure how your information will be used, don't be afraid to ask – it's your right to know.<br /><br /><em>Myth: If you're late on your monthly mortgage payments, you'll lose your house.</em><br />Fact: If you have a financial hardship, like the death of your spouse or a medical emergency, and fall behind, it's possible to keep your home and get back on track if you contact your lender early (the organization to whom you make your monthly mortgage payments, sometimes also referred to as your mortgage servicer).<br /><br />If you experience a change in your financial situation and think that you will fall behind or have fallen behind on your mortgage payment, call your lender immediately.<br /><br />Despite popular belief, lenders do not want to foreclose on homes. They want to keep you as a customer for life. In fact, lenders typically lose money in the foreclosure process, so they are always looking for ways to help you make ends meet.<br /><br /><em>Myth: You can't get a mortgage if you've changed jobs several times in the last few years.</em><br />Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income and good credit.Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com0tag:blogger.com,1999:blog-4553566001613068926.post-72458076415712577582009-11-21T11:15:00.000-08:002009-11-21T11:27:01.266-08:00Property Tax<em><em>I am now posting questions that I am asked in case others have related inquiries. Below I have listed frequently asked questions related to property taxes. </em> If you are curious about a different subject, please feel free to post any questions to my blog, or you can call, text or email.</em><br /><br /><br /><strong>Is there a centralized location to obtain property tax information?</strong><br /><br />The county offices of the Assessor, Auditor-Controller and Treasurer-Tax Collector created a website to assist the public with general information concerning property taxes. Visit at: http://www.riversidetaxinfo.com/riverside_faq.asp <br /><br /><strong>How can I obtain a copy of the tax rate book?</strong><br /><br />Copies are available for $35.00. Please click here for a link to the form to be filled out and mailed in with your check payable to:<br /><br />Riverside County Auditor-Controller’s Office<br />P.O. Box 1326<br />Riverside, CA 92502<br /><br /><strong>How are property taxes calculated?</strong><br /><br />Property taxes are calculated by multiplying the assessed value by the tax rate. For property held primarily as the residence of the taxpayer, a value of 7,000 for a homeowner’s exemption may be deducted from the assessed value to arrive at the net amount subject to property taxes. To obtain the homeowners exemption click here for more information.<br /><br /><strong>What does a Tax Rate consist of?</strong><br /><br />In California, the property tax rate is set at 1%. This rate is constant as guaranteed under Proposition 13 passed in 1978. What this means is that a $1 tax is imposed for every $100 of assessed value of the property. In addition, under the provisions of Proposition 13, any taxes levied by any governmental agency on top of the 1% must be approved by 66 2/3% of the voters. However, in the case of the school bonds, only 55% majority is required as provided for under Proposition 39. Therefore, any rate you will see in your tax bill added to the 1%, represents a debt or debts approved by the voters.<br /><br /><br /><strong>Can my property taxes change from year to year?</strong><br /><br />Yes. Proposition 13 allows for an increase of up to 2% of property value each year. (Revenue and Taxation code 51) Also, the tax rate in your area can increase as new bonds are added or decrease as existing bonds are paid off. Special Assessments can also cause an increase or decrease as they are added or deleted.<br /><br /><strong>What is a supplemental tax bill?</strong><br /><br />State law requires that the Assessor reappraise property value immediately upon a change of ownership or completion of new construction. The Assessor's Office must issue a supplemental assessment that reflects the difference between the new and prior assessed values. The difference in values is multiplied by the rate applicable to the date of the event and then prorated based on the number of months remaining in the fiscal year, ending June 30th. If you purchased the property for less than the amount assessed on the tax roll and the current taxes are paid, you will receive a supplemental tax refund.<br /><br /><strong>Will I get a supplemental tax (bill) every year?</strong><br /><br />No. It is a one-time adjustment. It only occurs when there is a change of ownership or when a new construction project is completed. In a few instances, destruction of property due to acts of nature could lead to a negative adjustment that may result in a supplemental refund<br /><br /><strong>What are special assessments?</strong><br /><br />Special assessments are additional charges attached to a tax bill levied by cities, special districts, and other governmental entities. Special assessments are not part of the tax rates. These assessments may include but are not limited to the following: garbage collection, weed abatements, sewer charges, maintenance fees, Mello-Roos, etc. The calculation of these charges is the responsibility of the agency that levies them. These special assessments are individually identified on your tax bill. For questions regarding these special assessments, please call the telephone number of the agency that levied it. The phone number is indicated on your tax bill corresponding to the assessment in question.<br /><br /><strong>What is Mello-Roos?</strong><br /><br />The Mello-Roos Act of 1982 provides a flexible alternative method for local governments to finance public facilities. This legislation allows cities, counties, and special districts to designate specific areas as “Community Facilities Districts” (CFD) and, with the approval of two-thirds of the qualified voters, allows these districts to issue bonds and collect special taxes to finance such projects. The CFD may finance projects with a specific benefit to the district, such as streets, water, sewer, and drainage facilities, as well as projects of a more general nature, such as parks, schools and libraries.<br /><br /><br /><strong>How long will Mello-Roos fees last?</strong><br /><br />Generally, the bonds are paid over a period of 10 to 20 years. To get an exact time period for your assessment, you will need to contact the agency shown on your tax bill.<br /><br /><br /><strong>How long does it take to obtain a refund?</strong><br /><br />The Property Tax Division of the Auditor-Controller's Office (ACO) issues refunds as a result of value corrections, assessment appeals and special assessment reductions. Once these corrections are made to the tax roll, the refund is sent to the Tax Collector’s Office (TC), where a “claim for refund” is prepared and mailed to the taxpayer. When the claim form is returned, the TC will release the refund back to the Auditor-Controller to process a refund warrant. As a matter of policy, the refund warrant is processed within 10 working days.<br /><br /><br />Contact the Auditor-Controller’s Office:<br />We are located at: <br />4080 Lemon St. 11th Floor <br />Riverside, CA 92501<br />Telephone: (951) 955-3800<br />Fax: (951) 955-3802<br /><br /><br />For the following issues, please contact the agency identified on your tax bill.<br /><br />- What is the balance of my Mello-Roos?<br />- Who shall I ask about Mello-Roos? School bond?<br />- How long do I have to pay my voter approved bond?<br />- How do I clear or pay my delinquent garbage bill?<br />- I have a well to supply me with water. Do I still have to pay the<br />assessment for water on my tax bill?Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com0tag:blogger.com,1999:blog-4553566001613068926.post-49721486332522074182009-11-11T10:33:00.000-08:002009-11-11T15:05:16.360-08:00Featured Listing<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiAli7iKucdBBYCQH2Z8bBS4YyM07hBLjOgWyAH0ZEm8PsdR7dw_f9YvcwX2qqs7ywcNnHLXcPqx1twliroRncSZBzK2sN3917tb5hyIhyOzKUKgwfXPkBZGWpZNenTljYBJtC53vIxmXw/s1600-h/shadowood.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 320px; height: 213px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiAli7iKucdBBYCQH2Z8bBS4YyM07hBLjOgWyAH0ZEm8PsdR7dw_f9YvcwX2qqs7ywcNnHLXcPqx1twliroRncSZBzK2sN3917tb5hyIhyOzKUKgwfXPkBZGWpZNenTljYBJtC53vIxmXw/s320/shadowood.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5402916218815082082" /><br />Located in the desirable area of Misson Grove in Riverside, this 4 bedroom 2.5 bathroom executive home is a rare find. Boasting 30K in upgrades, including crown molding, hardwood flooring and ceramic tile flooring - this home offers over 2,000 square feet in a well-designed single level. With an extra large lot (13,503 square feet), you will enjoy the fine landscaping and several fruit trees on the property, along with RV/Boat parking. Close to Crestview Park, Canyon Crest Golf Course & Sycamore Canyon Park.><br /><br /></a><em><strong>Offered at $280,000</strong></em><br>Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com0tag:blogger.com,1999:blog-4553566001613068926.post-31598986640957962412009-11-09T10:39:00.001-08:002009-11-09T10:45:05.809-08:00Home-Buyer Tax Credit<strong>The tax credit has been extended and expanded for 2010! Meaning, it's still a great time to buy! I'm including an article from the Los Angeles Times which outlines in detail the new and improved bill for 2010. </strong><br /><br /><strong>This time, income limits have been raised, so millions more people are eligible. You don't have to be a first-timer either.</strong><br /><br /><br />Millions of additional people may be able to take advantage of the new and improved first-time home-buyer tax credit now, and it's not just for first-time home buyers anymore. You may qualify. <br /><br />President Obama signed legislation Friday to extend unemployment benefits to American workers. The law also includes provisions that vastly expand the number of people eligible for home-buyer credits by boosting the income eligibility limits, giving buyers more time, creating a $6,500 credit for longtime homeowners and launching more-accommodating rules for members of the military. Here are the details.<br /><br /><strong><em>The $8,000 credit</em></strong><br /><br />If you were locked out of the first-time home-buyer credit in the past simply because you earned too much, there's good news. <br /><br />Now you can qualify for the full $8,000 first-time home-buyer credit with a single income of up to $125,000 and married income of up to $225,000. Those who earn more will be phased out. <br /><br />The credit ends completely once single income exceeds $145,000 and married income exceeds $245,000. Still, that's a big boost from the previous law that shut off the credit for singles earning more than $95,000 and married couples who earned more than $170,000. Other eligibility rules<br /><br /><br /><br />* You must not have owned another home for at least the previous three years.<br /><br />* You must buy a home (or have a binding contract to buy) by April 30, 2010. Under the new law, if the sale doesn't close on time, you can still get the credit as long as you've got a binding contract on the ending date, said Jackie Perlman, tax analyst with the Tax Institute at H&R Block in Kansas City.<br /><br />* You must be older than 18 and not claimed as a dependent by any other taxpayer.<br /><br />* The property you purchase cannot have been acquired from a relative.<br /><br />* You must attach a copy of your settlement statement with your tax return to claim the credit.<br /><br />* Most buyers also must continue to own this new home for at least three years. If they sell in less time, the government will demand that they pay the credit back, said Clint Stretch, director of tax policy with Deloitte Tax. <br /><br /><em><strong>Special rules for military </strong></em><br /><br />The government will not require repayment of the credit if you are a member of the military and had to sell or stop using the home as a residence because of extended duty, however. <br /><br />In addition, those serving outside of the U.S. during any part of 2009 or early 2010 will get an additional year to claim the credit. In other words, the credit ends for most people on April 30, 2010, but it lasts until April 30, 2011, for active-duty service members working overseas.<br /><br /><em><strong>The $6,500 credit</strong></em><br /><br />The new law carves out an additional credit for current homeowners. <br /><br />If you have owned and lived in a home for at least five consecutive years of the last eight years, you could qualify for a $6,500 tax credit, if you buy a new home between now and April 30. <br /><br />The "five-of-eight" requirement means that this credit could accommodate people who lost their homes in the last year or two to foreclosure or even sold a house and didn't immediately replace it, said John. W. Roth, senior tax analyst with CCH Inc., a Riverwoods, Ill., publisher of tax information.Would you have to sell your residence for it to qualify for the $6,500 credit, if you wanted to buy a new one? Not necessarily, Roth said. The home you purchase must become your principal residence, so you would have to move there. But nothing in the law says you cannot keep your existing residence as a second home or rental, he said.<br /><br />If you do choose to sell your existing residence, you need to pay close attention to how much you earn on that sale, Stretch said. That's because taxable profits from the sale of your residence will be added to your other earnings to determine whether your adjusted gross income exceeds the allowable thresholds. <br /><br />This credit also phases out for singles earning more than $125,000 and married couples earning more than $225,000.<br /><br />On the bright side, some profits from the sale of a personal residence don't count. That's because taxpayers are allowed to exclude up to $250,000 per person or $500,000 per couple in profits on the sale of their personal residence from tax, if they lived in that home for two of the last five years, Stretch said. Only profits exceeding those excluded amounts would be included in income, he noted.<br /><br />Getting muddled? Let's look at an example to clarify. <br /><br />John and Sue Smith own a home that they bought for $100,000 in 1965. They're now retired and want to scale back, selling that home, which is now worth $750,000, and buying a smaller home with the help of the new $6,500 credit. <br /><br />Their net profit on this sale would be $650,000, but they can exclude $500,000 of that gain from tax, based on existing law. They will have to add the remaining $150,000 capital gain to their adjusted gross income to determine whether they can qualify for the new credit.<br /><br />If all of their other income adds up to less than $75,000, they have no worries because the $150,000 and $75,000 add up to $225,000 -- the beginning of the credit's phase-out range for married couples. If they earn more, however, they begin to lose their ability to take the credit.<br /><br />There are other arcane rules relating to profits earned on the sale of a home, so those with substantial profits may want to consult a tax professional before banking on the credit.<br /><br />"It's really confusing," Roth allowed. "It's as if they took the old law and threw it in a Mixmaster. Some things still apply; others don't. The time frames are all new. This is going to keep a lot of tax accountants in business for a long time."<br /><br />By Kathy M. Kristof, LA TimesAmber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com0tag:blogger.com,1999:blog-4553566001613068926.post-39138943256310626262009-11-06T09:12:00.000-08:002009-11-06T09:31:29.495-08:00Market Update for Inland Empire<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtZrEd5dA8liPFoENfulobqFd-tfTSQagw20VZa0V1bvMZXFA5um_gdUv0epjhSxR9RTTV49CUO47q6TszRifLyy2w_DgXjCyxD3EYurJ_6_NCRpS-sNf8xjgG14f8If3bqEMh5BlBmZw/s1600-h/market+trends.bmp"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 215px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtZrEd5dA8liPFoENfulobqFd-tfTSQagw20VZa0V1bvMZXFA5um_gdUv0epjhSxR9RTTV49CUO47q6TszRifLyy2w_DgXjCyxD3EYurJ_6_NCRpS-sNf8xjgG14f8If3bqEMh5BlBmZw/s320/market+trends.bmp" border="0" alt=""id="BLOGGER_PHOTO_ID_5401042243238241954" /></a><br /><br />The chart shows the average days on the market and pricing information with a monthly overview. Please contact me for further information or details. Thanks! <br /><br />(951) 505 - 1195Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com1tag:blogger.com,1999:blog-4553566001613068926.post-76409968308624872342009-11-04T07:03:00.000-08:002009-11-04T07:08:52.322-08:00Foreclosures<em>I wanted to post some information on foreclosures because so many people are curious about them but do not have enough information to go off of. So, this article is taken from bankrate.com. If you have any questions outside out this, please let me know! Call anytime (951) 505-1195.</em><br /><br />With interest rates at record lows and the stock market looking too perilous for small investors, many people are putting money in an asset they understand -- real estate.<br /><br />One of the best places to invest is in foreclosures and bargain residential real estate.<br /><br />The current market conditions make it a perfect time for a small investor to purchase one or more foreclosure properties for their private residence, rental or resale. During economic downturns, more upscale homes go into foreclosure, so the notion that foreclosure homes are only available in crime-ridden areas is inaccurate. Beachfront and homes in affluent areas are part of the mix of foreclosed properties available.<br /><br />But anyone considering buying a foreclosed home should forget about paying pennies on the dollar.<br /><br />"You can buy foreclosures for as cheap as 30% or 40% below market, but most foreclosures sell for 5% below market," said John T. Reed, editor of Real Estate Investor's Monthly, a newsletter based in Alamo, Calif.<br /><br />Yet the savings may be twofold if the property is purchased from the lender who holds the mortgage that's in default. That lender may be willing to waive some closing costs, maybe even offer a break on the interest rate or the down payment.<br />Investment of time<br />A novice must learn to navigate the foreclosure process. But Todd Beitler, owner of the Real Estate Library in Boca Raton, Fla., says the time and effort can translate to savings. "If somebody spends 10 hours a week for five weeks to do research, it's worth it."<br /><br />For most consumers, however, the foreclosure process can prove daunting, Reed says. Good buys are available, but they require research, preparation, patience and persistence.<br /><br />The foreclosure process starts when a property owner falls behind on mortgage payments. Many owners of homes that go into foreclosure have been struggling financially for almost a year before they give up, which usually means that the house has not received needed repairs or general maintenance for a while.<br /><br />This may include everything from missing light bulbs to roof leaks. Tree limbs in front yards, broken appliances and windows, and dirty carpets, floors and walls are found in even very-affluent area foreclosures.<br /><br />This can be a boon -- or boondoggle -- for a buyer. Houses in poor condition might fetch bargain prices, but repairs can boost the cost again. The first rule of real estate, "location, location, location," applies in these situations. If there is trash in every room of the house, but the foreclosure is in a good area with high property resale values, hold your nose, walk through the entire house and consider making a low offer.<br />Reading assignments<br />When a lender decides to foreclose on a property, a notice of default or a lis pendens (Latin for "lawsuit pending") is filed, depending on the state. This document is a public record, and for buyers, it's the first step in locating a property in foreclosure. A buyer looking for foreclosures also can buy magazines and newsletters that list properties in default.<br /><br />Once a home has been located, search public records. Look for liens on the property, since they can drive up the purchase price. Liens typically are placed on a house for unpaid property taxes. Also check assessed values and sale prices of neighboring properties.<br /><br />Research local state foreclosure laws, since they differ. Some states -- such as Florida, New York, Ohio and Pennsylvania -- require the lender to sue the borrower and get a court order for the sale of the property, a process known as judicial foreclosure. Other states -- including California and Texas -- follow the non-judicial foreclosure process, which doesn't require a lawsuit.<br /><br />For novice investors, buying from the lender is the safest way to buy. Most foreclosures are taken back by the bank during auction, Beitler says. While well-located homes in good shape generally don't sell for deep discounts, rundown properties can be sold more cheaply.<br /><br />Often, the banks hire a real estate agent and sell foreclosed homes in the traditional manner, Reed says. But sometimes buyers can succeed by pestering bank loan officers with low offers.<br /><br />Buyers might try low-balling the lender's REO (for "real estate owned") officer shortly before the nonperforming assets have to be reported to supervisors, Beitler says.<br />The safest deals<br />Bank-owned properties offer the safest deal for inexperienced foreclosure buyers, Beitler says: "There's no risk. There are no taxes, no liens, no tenants to evict."<br /><br />A lender that's eager to sell might be willing to offer attractive terms, says George Tribble, broker of record at Jetstream Mortgage in Oakland, Calif., and past president of the California Association of Mortgage Brokers.<br /><br />The lender might offer to finance the property at a below-market rate or with a lower-than-usual down payment. Because the bank already has done an appraisal, the buyer might not have to pay an appraisal fee, Tribble says. And lender deals typically include title insurance, which removes much of the risk that accompanies buying homes earlier in the foreclosure process.<br /><br />Hidden foreclosures<br />Not all foreclosures are previously owned homes. Some foreclosed homes are new. These homes are not as easy to identify and rarely appear on national lists. In some areas, the slow economy has left many builders of new midscale and upscale homes at the end of their construction-loan periods without finding buyers for their homes.<br /><br />In these cases, the banks that issued the construction loans take possession of the homes and attempt to sell them, using real-estate agents to handle the deals.<br /><br />These, too, are foreclosures. They are "hidden" foreclosures because no one associated with the sale of these properties will refer to them as foreclosed homes.<br /><br />More daring investors can find other points in the process to buy homes, like just before foreclosure. The buyer finds a homeowner about to go into default. The homeowner doesn't want to lose all of the equity in the property, so accepts a portion of the difference between the equity and the home's market value.<br /><br />Pre-foreclosure buys offer bargains but demand persistence. That's because creditors are often hounding owners at this stage. "Trying to get through to the homeowner is virtually impossible," Beitler says.<br /><br />If the homeowner is contacted, the buyer could be in for a surprise, Reed adds. Homeowners in default might not have phones or electricity, and they might have a variety of personal and legal problems. What's more, they probably need somewhere to live before they can move out of the property the buyer wants.<br /><br />This is a high-risk, high-reward proposition, and it's not for first-time foreclosure buyers, Beitler says.<br />The auctioneer<br />Most auctions take place at the county courthouse steps, and they pose disadvantages: Buyers might not be able to inspect the property, and they'll have to put up the entire purchase price the same day.<br /><br />The U.S. Department of Housing and Urban Development also runs auctions to unload homes it has acquired through defaults on federally backed mortgages. There aren't a lot of steals in this process, according to a study by Tim Allen, a real estate professor at Florida Atlantic University.<br /><br />Allen tracked sales at a HUD auction in Florida in 1998; he found that buyers paid prices very close to assessed value. Beitler agrees that there's a "frenzy" at HUD auctions that can push prices to unreasonable levels.<br />The cost of getting started<br />With good credit, many banks will loan the full price of the foreclosure or more. If the home is to be used as a rental, many banks will require only a 10% down payment.<br /><br />Individuals with a large amount of equity in another home may get a line of credit from their bank to purchase a foreclosure. When they convert the line of credit to a mortgage, no down payment may be required.<br /><br />Foreclosure homes bought in good areas at below market values that appreciate annually can be a sound investment strategy for many investors. The appreciation of the homes is tax-exempt until the home is sold. If the home is a primary residence, the appreciation may be tax-free.<br /><br />Homes used as rental properties give most investors valuable tax deductions while the house increases in value and builds equity. With many stock portfolios down, foreclosure real estate investing may be the alternative many people are seeking.Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com0tag:blogger.com,1999:blog-4553566001613068926.post-21232514252941029172009-11-02T09:41:00.000-08:002009-11-11T12:23:43.519-08:00Introduction:<div align="center"></div><div align="center"></div><div align="center"><br />Hello!! Thanks for checking out my blog! <br />I thought I should introduce myself and my experience in my first blog entry. I have been involved in the real estate industry for as long as I can remember. My father was a real estate investor, so I was constantly hearing about what he was doing in the market growing up. In high school, I began working as an assistant to some of the leading ladies in the real estate industry, where I learned more specifically the details of each transaction. I helped prepare newsletters and home fliers, coordinated and ordered inspections, organized files, prepared and hosted open houses, did door-to-door canvasing and assisted in the preparation of listing presentations and buyer consultations. I worked as an assistant to these motivated and successful agents for five years, which ultimately encouraged me to pursue my own real estate career. I became a licensed salesperson in October 2004 and have worked in real estate fields ever since.<br /><br /></div><div align="center"></div><div align="center">I became involved with the team at Prudential California Realty in January 2005, which is where I continue to keep my license and work full-time in real estate sales. My passion is helping people find a home to purchase or to help prepare a home for sale, so I put my full effort into each transaction I take part in. The biggest compliment I can receive is the referral of a friend or family member to use my real estate service.<br /><a href="http://s973.photobucket.com/albums/ae211/Amber4RealEstate/?action=view¤t=MyPhoto.jpg" target="_blank"><img src="http://i973.photobucket.com/albums/ae211/Amber4RealEstate/MyPhoto.jpg" border="0" alt="Photobucket"></a><br /><br /></div><div align="center"></div><div align="center">Besides residential sales, I have studied and worked in various related fields including Property Management (2006) as a leasing consultant, and real estate sales and data research for Hanley Wood Market Intelligence (January 2007 - present). My work with Hanley Wood only compliments my work in sales, as I am able to keep up-to-date with market trends and conditions as well as have an in-depth comprehension of pricing, community information, and what's to come in real estate development.<br /><a href="http://s973.photobucket.com/albums/ae211/Amber4RealEstate/?action=view¤t=header-logo.jpg" target="_blank"><img src="http://i973.photobucket.com/albums/ae211/Amber4RealEstate/header-logo.jpg" border="0" alt="Photobucket"></a><br /><br /></div><div align="center"></div><div align="center">Furthermore, I obtained my Bachelor's degree in Communications from California State University of San Bernardino in 2006, where I also studied journalism and real estate.<br /><br /><a href="http://s973.photobucket.com/albums/ae211/Amber4RealEstate/?action=view¤t=sanbern.jpg" target="_blank"><img src="http://i973.photobucket.com/albums/ae211/Amber4RealEstate/sanbern.jpg" border="0" alt="Photobucket"></a><br /><br /></div><div align="center"></div><div align="center">I am here to answer questions and assist you with any real estate needs. Please email me at <a href="mailto:Amber4RealEstate@gmail.com">Amber4RealEstate@gmail.com</a> or call me directly at <br /><strong> (951) 505-1195</strong>.<br /></div><div align="center"></div>On this blog I will be posting videos and blog entries to answer some FAQ's in hopes of clarifying some general information on the current market, etc. Again, thanks for checking out my blog and come back frequently for updates!Amber4RealEstatehttp://www.blogger.com/profile/03005691070794343945noreply@blogger.com1