The government is giving homeowners another year to refinance their loans under a little-used program designed to help borrowers whose homes have plummeted in value.
The Obama administration effort, known as Home Affordable Refinance Program, had been scheduled to end on June 10 but will now run out on June 30, 2011, the Federal Housing Finance Agency said Monday.
The program allows borrowers who owe up to 25 percent more than their homes are worth to refinance to lower interest rates.
It was originally projected to help 4 million to 5 million homeowners with loans owned or guaranteed by Fannie Mae and Freddie Mac. So far, it has helped around 220,000, according to the Treasury Department.
Click here for more information: http://makinghomeaffordable.gov/refinance_eligibility.html
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
http://www.twitter.com/sdrealestate
http://www.facebook.com/realestatesandiego
Friday, March 5, 2010
Monday, February 22, 2010
Mortgage Protection Program for Californians Only is Extended!
If you were a first-time homeowner last year (2009) your agent should have registered you with the Mortgage Protection Program through the California Association of Realtors (CAR) - certain restrictions apply - you cannot be self-employed or owned a home within the past 3 years for example. The Mortgage Protection Program offers you benefits if you lose your job during the first year of your home purchase. It is only available to California home buyers.
This benefit offers you up to $1,500 per month for up to six months if you lose your job due to layoffs, and qualified co-buyers can receive monthly benefits of $750 per month for up to 6 months, and it is free to you! The Mortgage Protection Program was due to end December 31st, 2009 but has now been extended through to the end of this year.
Buying a home is one, if not THE, most stressful thing you can do, this program helps alleviate some of that giving you an added layer of security. The California Association of Realtors Housing Affordability Fund (CARHAF) is a non-profit organization which receives donations primarily from Realtor members and associations, committed to addressing housing challenges in California. For more on the Mortgage Protection Program visit http://www.car.org/members/hafmainpage/carhafmortgageprotection/ and don't forget to call/email me with any questions - I am here - I can help!
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.janeloveday.com/
http://www.facebook/realestatesandiego
http://www.twitter.com/sdrealestate
This benefit offers you up to $1,500 per month for up to six months if you lose your job due to layoffs, and qualified co-buyers can receive monthly benefits of $750 per month for up to 6 months, and it is free to you! The Mortgage Protection Program was due to end December 31st, 2009 but has now been extended through to the end of this year.
Buying a home is one, if not THE, most stressful thing you can do, this program helps alleviate some of that giving you an added layer of security. The California Association of Realtors Housing Affordability Fund (CARHAF) is a non-profit organization which receives donations primarily from Realtor members and associations, committed to addressing housing challenges in California. For more on the Mortgage Protection Program visit http://www.car.org/members/hafmainpage/carhafmortgageprotection/ and don't forget to call/email me with any questions - I am here - I can help!
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.janeloveday.com/
http://www.facebook/realestatesandiego
http://www.twitter.com/sdrealestate
Friday, February 19, 2010
Advice on Your Possible Short Sale
A short sale occurs when your lender agrees to accept a lower price on your home than the current mortgage balance, provided you meet the lender's requirements and have a qualified buyer.
To prove your case, you'll need to spend some time on a cover letter explaining your hardship and provide full financial disclosure; the original purchase contract; a balance sheet of your income and expenses; asset statements, proof of income; bank statements; two years of tax returns; and a professional who knows the ropes.
Simply stating, 'My house is worth less than the loan and I don’t want to pay any more,' will not be acceptable. Lenders would rather foreclose than develop a reputation as an easy target.
Along with the required documentation, you stand the best chance of getting through the two- to seven-month short sale ordeal if the home is marketable; the second mortgage holder (if there is one) gets a cut or otherwise goes along with the deal; the same lender holds all mortgages; and there is enough time before foreclosure (at least about 4 months).
Don't count on a short sale if you can't prove hardship; you are current on your mortgage; are in bankruptcy; have recently completed a cash-out refinance or have a lien with a third party.
Because a short sale forgives a portion of the debt owed, that portion could be considered as taxable income and you should seek the advice of a tax attorney, certified public accountant, enrolled agent or other person fully schooled in the tax ramifications of a short sale.
According to FICO, the leading credit scoring system provider, there also may be some credit score implications.
You may also need legal and tax counsel. A solid professional team is best for determining the viability of the short sale, assembling the package and pricing and listing the property to find a buyer.
It’s a tough decision, but I am here if you need help!
Jane Loveday
Windermere Pacific Coast Properties
619-519-1615 Cell
http://www.JaneLoveday.com
To prove your case, you'll need to spend some time on a cover letter explaining your hardship and provide full financial disclosure; the original purchase contract; a balance sheet of your income and expenses; asset statements, proof of income; bank statements; two years of tax returns; and a professional who knows the ropes.
Simply stating, 'My house is worth less than the loan and I don’t want to pay any more,' will not be acceptable. Lenders would rather foreclose than develop a reputation as an easy target.
Along with the required documentation, you stand the best chance of getting through the two- to seven-month short sale ordeal if the home is marketable; the second mortgage holder (if there is one) gets a cut or otherwise goes along with the deal; the same lender holds all mortgages; and there is enough time before foreclosure (at least about 4 months).
Don't count on a short sale if you can't prove hardship; you are current on your mortgage; are in bankruptcy; have recently completed a cash-out refinance or have a lien with a third party.
Because a short sale forgives a portion of the debt owed, that portion could be considered as taxable income and you should seek the advice of a tax attorney, certified public accountant, enrolled agent or other person fully schooled in the tax ramifications of a short sale.
According to FICO, the leading credit scoring system provider, there also may be some credit score implications.
You may also need legal and tax counsel. A solid professional team is best for determining the viability of the short sale, assembling the package and pricing and listing the property to find a buyer.
It’s a tough decision, but I am here if you need help!
Jane Loveday
Windermere Pacific Coast Properties
619-519-1615 Cell
http://www.JaneLoveday.com
Wednesday, February 3, 2010
Property Searching via the Internet and your Realtor
Today almost everyone will begin to search for their new home on the internet. There are many different sites to visit - Trulia, Redfin, Homes.com, and the very comprehensive Realtor.com, which is the most up-to-date and accurate site other than using a Realtor's own website which is usually linked directly to the local Multiple Listing Service.
Whichever site, or sites you use, you will always need an actual Realtor to show you homes that he/she have found along with the ones you have found. Despite advertising claims to the contrary, the internet alone is not an experienced Real Estate Professional. It cannot consult, counsel, advise, have knowledge of local laws and market conditions. Nor can it make judgements, 'own' the results, negotiate or most importantly understand your goals and needs and care about you as a client!
To obtain an accurate interpretation of any information you're receiving online, please contact your Realtor, or better than that, contact me!
Follow me on twitter - @sdrealestate and facebook.com/realestatesandiego
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
Whichever site, or sites you use, you will always need an actual Realtor to show you homes that he/she have found along with the ones you have found. Despite advertising claims to the contrary, the internet alone is not an experienced Real Estate Professional. It cannot consult, counsel, advise, have knowledge of local laws and market conditions. Nor can it make judgements, 'own' the results, negotiate or most importantly understand your goals and needs and care about you as a client!
To obtain an accurate interpretation of any information you're receiving online, please contact your Realtor, or better than that, contact me!
Follow me on twitter - @sdrealestate and facebook.com/realestatesandiego
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
Friday, January 15, 2010
Homebuying 101 - 2010 style!
Thinking of buying? Wanting the $8,000 Tax Credit to work for you? There are a lot of good reasons to buy a home right now, interest rates are at their lowest in years, prices are beginning to rise (in San Diego specifically) but not by a significant amount, you will get a fixed-rate mortgage which you really have qualified for! And it's a great long-term investment.
So what are the downsides?
First you must realise that you are not alone, many people are now seriously looking to buy their first home. We also have a substantial lack of inventory - that is homes for sale, and the majority are either bank-owned, investor-owned or short sales.
With a bank-owned home, there is usually no negotiating on price, repairs, termite clearance or closing costs. That can mean you maybe out additional dollars fixing up a house, and you may have to weigh that into how much you want to spend out of pocket, and if you can afford any extras. A bank-owned home is usually priced below the rest of the competition making it even more competitive with first-time buyers and investors who are looking for a good deal to 'flip'.
With an investor-owned home, it may have, and more times than not, have been 're-habbed' with new carpet, appliances, landscaping, even a termite clearance and if lucky a new roof. These homes may have originally been bought on the Courthouse steps with the sole purpose to resell and make a profit. These homes are also very competitive with first-time buyers as you seldom need to make or request repairs, it's already been done. You may also be able to request help with closing costs!
A short sale home is where the current owner is behind with their mortgage payments, and are negotiating with their lender to sell their home for it's current value, have the lender take a loss on the mortgage amount and the seller walk away. This process can take up to 4 - 6 months depending on the listing agent and their background experience in negotiating the short sale process. There may be a refusal for any repairs, closing costs, termite, etc as you are not dealing with the actual seller but their mortgage company or bank, who is already losing a lot of money by letting the home sell for less that what it was purchased at.
In all these cases, there is competition, and as a first-time homebuyer you must expect a lot of patience as you probably will be among several buyers submitting offers all hoping to be chosen.
To submit more than one offer on a property is totally usual in today's market, if you get lucky you may get an acceptance the first time, the 3rd, 5th, 10th or more. It all depends on several things:
If you have sufficient savings to cover your closing costs on top of your initial deposit and any additional funds for possibly repairs/termite clearance.
If you have a lender who can guarantee to close escrow within 30 days (everyone likes that a lot!)
If you can possibly qualify for a conventional loan (at least 10% or more down) versus an FHA loan (3.5% down)
If you are not signed up for a rental lease that still has over 2 months to expire - do you want to pay rent and a mortgage for a month while they overlap?
And if you have an agent who knows the market area in which you are buying, can communicate on a regular basis with other agents who may be holding your offers, and does not encourage you to over-bid even if you are competing with other buyers - you don't want to pay for an appraisal only to find out the home will not qualify for your offer amount.
There's an awful lot of variables, but if you know what you can expect, it will make it a little easier to understand that if your offer is rejected, it's not personal, you just keep trying.
There's a whole lot of first-time buyers who are closing their transactions, who are looking forward to their $8,000 tax rebate, and who represent the recent statistics that home sales are increasing monthly. It's always good to be educated on what to expect up front rather than get frustrated and upset if no-one had told you at the beginning.
GOOD LUCK! Here's to owning your very first home!
Jane Loveday
619-519-1615 Cell
http://www.JaneLoveday.com
Wednesday, December 30, 2009
30 Offers and a Red Front Door - San Diego Real Estate
I have had the pleasure of working with ALL my buyers over the past several years but 2009 has posed a completely different set of 'rules'. With the amount of foreclosures and short sales that we are seeing it is not unusual for me to counsel that it will probably take several offers before one is accepted. That saying several usually means anywhere between 4 and maybe 8 offers, due to the competitiveness of the market and the amount of cash investors knowing a good thing when they see one.
However I recently spent a few months writing up to 30 offers for one buyer, he stayed with me as offer after offer was rejected, he was a VA buyer which means he did not put very much down, VA usually requires a 100% loan, and we were asking for closing costs to be paid by the seller, plus all termite inspection and clearance fees, and a home warranty to cover appliances.
Our 30th offer was on a property which was being 'flipped' - bought at auction, was rehabbed with new appliances, carpet, windows etc and with a red front door! Why would that matter - well a red front door some say is lucky and we were! 30 Offers and a Red Front Door!
After 30 offers we received an acceptance, we closed escrow within 30 days thanks to a wonderful lender who I work with, and my buyer is over the moon with the fact that not only is he a new homeowner, he also gets his $8,000 first time homebuyer tax credit on his 2009 taxes!
Was it worth it, YES, YES, YES, your dream of homeownership is my dream for you too no matter what it takes. This market is challenging, but we Realtors are fighters and we stay the course because it's our business and we know in the future it will get easier, but for now we are in the ring and it's round 2, or 6, or 10 but we will win your title to your next home!
Jane Loveday
REALTOR Lic. # 01439083
Windermere Pacific Coast Properties
cell:619.519.1615
fax:619.269.3766
http://www.janeloveday.com/
However I recently spent a few months writing up to 30 offers for one buyer, he stayed with me as offer after offer was rejected, he was a VA buyer which means he did not put very much down, VA usually requires a 100% loan, and we were asking for closing costs to be paid by the seller, plus all termite inspection and clearance fees, and a home warranty to cover appliances.
Our 30th offer was on a property which was being 'flipped' - bought at auction, was rehabbed with new appliances, carpet, windows etc and with a red front door! Why would that matter - well a red front door some say is lucky and we were! 30 Offers and a Red Front Door!
After 30 offers we received an acceptance, we closed escrow within 30 days thanks to a wonderful lender who I work with, and my buyer is over the moon with the fact that not only is he a new homeowner, he also gets his $8,000 first time homebuyer tax credit on his 2009 taxes!
Was it worth it, YES, YES, YES, your dream of homeownership is my dream for you too no matter what it takes. This market is challenging, but we Realtors are fighters and we stay the course because it's our business and we know in the future it will get easier, but for now we are in the ring and it's round 2, or 6, or 10 but we will win your title to your next home!
Jane Loveday
REALTOR Lic. # 01439083
Windermere Pacific Coast Properties
cell:619.519.1615
fax:619.269.3766
http://www.janeloveday.com/
Tuesday, September 15, 2009
Trouble (as in housing not beer!) brewing in San Diego....
Yes we do have good local beers here in San Diego but there is not a problem with our beers, our problem is with housing prices at the lower end of the scale. Want a cheap beer - no problem, want a cheap home - big problem. It's not good news...
I have written about this in indirect ways before but we are definitely seeing a big issue with first time homebuyers who are desperately trying to get into their first house before the $8,000 tax credit ends November 30th. The issue is the shortage of homes available in the right price range.
For example, looking for a single family home under $200,000 that will qualify for an FHA loan - 3.5% down and all the regulations that go with the loan, it is nearly, actually almost impossible in San Diego. Wanting to do a VA loan with zero down and closing costs paid by the seller, not really an option when you are competing with offers that do not ask for any costs back to the buyer or a cash investor (and there are plenty out there).
Wanting a house that qualifies for any other State or government loan, the same - almost too difficult to achieve.
WHY?
There are too many buyers, too little inventory (homes for sale) and too much competition with multiple offers for all lower priced properties.
Even in the condo market we are seeing the same situation, if it's a deal, a steal, then be prepared to compete with everyone else thinking the same. Even cash offers are often beaten by investors with higher cash offers and nothing, absolutely nothing, priced under $350,000 goes for asking or lower than asking price today.
What are we to do? I'm not sure, the bottom hit a few months ago, it's a seller's market and even with foreclosures about to be released after a moratorium, their low prices increases the bidding wars and invariably they sell for 20 - 30% over list price.
It's not fair, it's frustrating, ask any Realtor who works with first-time homebuyers and ask how many offers they are submitting for each client - I can guarantee it's more than at least 4 or 5, more like 10 - 12 or more.
So the answer, there is none, try and find a seller willing to accept your offer, or keep saving and keep fingers crossed for that one home that you can qualify for.
Back to a good cheap beer, relax, take a deep breath and know your Realtor is really, really trying their best to help YOU!
For the latest on the housing market check this article published this week:
San Diego Daily Transcript
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
I have written about this in indirect ways before but we are definitely seeing a big issue with first time homebuyers who are desperately trying to get into their first house before the $8,000 tax credit ends November 30th. The issue is the shortage of homes available in the right price range.
For example, looking for a single family home under $200,000 that will qualify for an FHA loan - 3.5% down and all the regulations that go with the loan, it is nearly, actually almost impossible in San Diego. Wanting to do a VA loan with zero down and closing costs paid by the seller, not really an option when you are competing with offers that do not ask for any costs back to the buyer or a cash investor (and there are plenty out there).
Wanting a house that qualifies for any other State or government loan, the same - almost too difficult to achieve.
WHY?
There are too many buyers, too little inventory (homes for sale) and too much competition with multiple offers for all lower priced properties.
Even in the condo market we are seeing the same situation, if it's a deal, a steal, then be prepared to compete with everyone else thinking the same. Even cash offers are often beaten by investors with higher cash offers and nothing, absolutely nothing, priced under $350,000 goes for asking or lower than asking price today.
What are we to do? I'm not sure, the bottom hit a few months ago, it's a seller's market and even with foreclosures about to be released after a moratorium, their low prices increases the bidding wars and invariably they sell for 20 - 30% over list price.
It's not fair, it's frustrating, ask any Realtor who works with first-time homebuyers and ask how many offers they are submitting for each client - I can guarantee it's more than at least 4 or 5, more like 10 - 12 or more.
So the answer, there is none, try and find a seller willing to accept your offer, or keep saving and keep fingers crossed for that one home that you can qualify for.
Back to a good cheap beer, relax, take a deep breath and know your Realtor is really, really trying their best to help YOU!
For the latest on the housing market check this article published this week:
San Diego Daily Transcript
Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com
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