Real Estate News
Why 1st Time Homebuyers Need to Buy NOW
August 30th, 2010 categories: 1st Time Home Buyer, Real Estate News
FHA with the ever wisdom of Congress with FHA Commissioner David H Stevens pushing for helping the First Time Homebuyers decided to SAVE the homebuyer money. WRONG! Let me tell you why if you are a homebuyer who will be getting an FHA loan, you need to buy a house NOW.
According to the recently passed Bill by Congress HR 5872 and HR 5981, FHA will be giving the homebuyer a break on one hand and socking it to the homebuyer with the other hand. If home buyers have not found a house, been accepted by the seller and ordered their appraisal by Oct. 4, 2010 homebuyers will be paying MORE on their monthly house payment than they would if they bought a house before October 4th.
It is IMPERATIVE that FHA homebuyers have a case number BEFORE Oct. 4, 2010 (this number is given when an appraisal is ordered)
WHY, you ask? Well, again the government in their great wisdom are decreasing what’s known as the MI but increasing the home buyers annual premium from .55 to 1.55. I know that sounds like gibberish to you so let’s put this in an easier way to understand.
Let’s say as a 1st Time home buyer you buy a house and need a loan today for $200,000. Perhaps, you pay 5% interest on that loan of $200,000. Your payment per month without taxes and insurance would be $1,192 per month.
Now, if you decide to buy a house as a First Time Home buyer and get an FHA loan but you put off looking and selecting a home, thinking prices will go down. This is what you can expect to pay on that same loan of $200,000 with 5% interest, if you miss the October 4th deadline that Congress passed….$1,344 per month.
I don’t think Congress or Commissioner David H Stevens actually looked out for the best interest of the FHA home buyer nor the recovery of our current real estate market.
What’s my advice? Call your REALTOR ® today:
- Get PreApproved by a Lender
- Find a house to buy
- Get Into Contract
- Order and Pay for that appraisal BEFORE Oct. 4, 2010
And save yourself over a $100 a month on your mortgage payment! I can think of lots of things I’d rather do with an extra $100 per month, can you?
Give me a call and let’s get moving and save you some money.
Articles and Video for First Time Homebuyers:
Why Home Buyers End Up With No House
Who Is A First Time Home Buyer
Home Buyers Want to Know: What is Contingency Period
Two Very Lucky Home Buyers in Roseville CA
What Every Sacramento Home Buyer Must Know
What Does A Realtor Do When I Want to See A House or Condo?
First Time Homebuyers Check- Off List – Part II – Write An Offer
First Time Homebuyer’s Check-off List – Part 1
Why is Buying a House Stressful?
| Discussion: Comments »
Sacramento Getting Some GREAT Real Estate News
August 25th, 2010 categories: Foreclosure, Real Estate News, Short Sale
There is good news on the horizon for distressed homeowners who refinanced their home. A deficiency judgment may not be lingering over your heads much longer. The Senate and CA State Assembly passed SB 1178 that protects homeowners who refinanced their original mortgage loan and find themselves in Foreclosure. There hasn’t been any help for you folks but things are changing.
Not everyone who refinanced their home used the money for trips, new cars and things but some actually refinanced to try and get a better interest rate and those folks have not slept well each night, wondering when a deficiency judgment would be coming in the mail. Well, help is on the way for you folks!
Right now, Governor Schwarzenegger has the SB 1178 sitting on his desk for signature and if signed will become effective June 2011. This will mark the end of coming after you when you refinanced (without taking money out of your home), known as a recourse loan.
And the good news just keeps getting better!!
Distressed Short Sale homeowners ALSO may get relief from deficiency judgment if their home is sold as a Short Sale. As a Short Sale Realtor ® I have found many banks not willing to forgo going after the original borrower at some time in the future. But now, if the Governor signs SB 931 Short Sale sellers will no longer have this monkey hanging around their neck. As long as the mortgage is a First mortgage and no more than 4 units which brings in the investor, the debt at the time of the sale must be fully discharged as paid in full.
Investors have been out of luck this whole time and SB931 finally brings some relief to those investors who are having trouble paying the mortgage loan, as well.
Now, maybe we will have some families that can sleep nights. There are some good people loosing their homes and for a long time now, this has been an albatross around their necks. It’s difficult to lose your home, a child’s bedroom, a place where memories were made and now all we need is a signature from our Governor to help bring some peace to so many sad faces.
If you would like the Governor to know how you feel about this very important issue, just click on the link California Association of Realtors – Red Alert. Be sure to fill out your name and email address so your voice can be heard.
So, if you are having trouble paying your house payment, give me a call and let’s work together to get your home listed as a Short Sale. I know this is a difficult time for you and you will be treated with the utmost dignity. Call Gena, the Distressed Property Expert, your Sacramento Short Sale agent, today.
Other Related Articles:
Is Your Home a Short Sale Home For Sale?
Are You Having Trouble Paying Your House Payment?
Is A Short Sale Different When It’s A Rental?
| Discussion: 2 Comments »
Bank of America: Hire American!
August 12th, 2010 categories: Real Estate News, Sacramento
Bank of America certainly does not live up to its name–and I would be hesitant to recommend their banking, investment and mortgage services to any of my Sacramento real estate homebuyers ever again.
I don’t know how you feel about all the outsourcing of American jobs to other countries, but since I live in Sacramento and we have double digit unemployment, it makes my blood boil to see critical employment that affects all our lives outsourced to foreign shores.
Bank of America received $45 Billion from TARP (a loan funded by our tax dollars) and they did pay it off early for their own political reasons–but I digress. Let me get to the point of this article.
I recently met with one of my clients, whom we’ll call Emily, to discuss what she should do with her Sacramento home. She owed more than it was worth, having refinanced it through Bank of America in 2006. In those days, it had been a nice neighborhood with lots of promise. Today, it’s a high crime area that has had a recent murder.
Emily is fearful of opening her home to traffic; she also has an obligation to disclose neighborhood hazards to potential home buyers. She asked me what she should do. I suggested she attempt a “deed in lieu of foreclosure” and allow Bank of America to re-sell the home, as they would not have the same burden of disclosure to potential home buyers and REO’s sell much faster than short sale homes for sale because fast decisions and home sales can be accomplished–which isn’t always the case with a short sale.
Taking my advise, Emily immediately called Bank of America and explained she had experienced a drastic cut in income and could no longer afford the mortgage for this home. She also was adamant about not doing a short sale. She asked for the the “Deed-on-Lieu” department and assumed that they would jump at the opportunity to save $50,000 in foreclosure costs, when she was perfectly willing to hand over keys to the home–which was still in good repair.
The call was immediately transferred to a worker in India by the name of Juvvala, who asked Emily in broken English how much income she grossed and how much she netted. Looking at her 2009 tax return in front of her, she rattled off the appropriate numbers to this outsourced employee and he immediately argued and told her the figures couldn’t be right. This all occurred on speaker phone, and I could not believe what I was hearing. Emily insisted the numbers came from her filed tax return and were correct–and again explained why she believed Bank of America should do a deed-in-lieu versus short sale or foreclosure. Juvvala, after a lengthy conversation, finally told Emily he couldn’t promise anything, but that she would receive Bank of America’s decision in the matter within 30 days.
In the meantime, Emily has been receiving calls from Bank o f America letting her know that she has missed a payment and that the call could be monitored and recorded. Each time Emily explained that she is waiting for a reply on a Deed-of-Lieu. These collection calls, she says, have been from the U.S. and she found each caller to be very polite, understandable and cordial in offering help. These Bank of America callers said they were not able to see where Emily was working on a Deed-in-Lieu because apparently that information is on another database–and as a result, the collections department for Bank of America is working in the dark.
Today, Emily received yet another call from a very nice Bank of America employee telling her she was late paying the house payment and she once again informed the caller that she was waiting to hear if her Deed-in-Lieu proposal had been accepted. She pressed the issue to see if the U.S. B of A employee could give her an update.
This is where the story gets interesting!
The U. S. employee transferred Emily to what she thought was the Deed-in-Lieu department of Bank of America–but it wasn’t. It was a friendly U. S. department for Short Sales. But, this nice man would transfer her to the Deed-in-Lieu department, for sure.
He did, and guess where Emily’s call ended up? That’s right, India. This time, Emily spoke with a woman named Malik who told her that according to the information on her screen, Juvvala had spoken to Emily about a deed-in-lieu on July 20th, but the call was disconnected and no further action was taken.
Since I was present during that call and I can tell you, the phone was never disconnected it appears that Mr. Juvvala, an outsourced employee of B of A, was too lazy to write up the conversation. Had Emily continued to wait, which a lot of homeowners would do, she would have been foreclosed upon. How many foreclosures have happened with B of A due to outsourced employees who simply took the easy way out and typed into their screen that the call was disconnected? How many never follow up–resulting in neighborhoods and lives being ruined?
My suggestion? Bring these jobs home and give them to American employees who care about our country, and use ONE database that allows one arm of Bank of America to see what the other is doing. All too often, short sales are ready to close and banks foreclose at an even lower price than what was offered.
It is insanity–and it feels like India is holding America hostage–and Bank of America is hiring them to do it.
Bank of America and its shareholders, as well as the American public , should know that this is not acceptable. India is holding America hostage and Bank of AMERICA is hiring them do it.
(As a side note, Emily reports that when she speaks with Bank of America workers in India there is no monitoring or recording of the conversation…is anyone in charge, does anyone care?)
Is this Bank of AMERICA or Bank of AmeriCAN’T?
| Discussion: 4 Comments »
Tax RELIEF For Sacramento Foreclosures, Short Sales and Loan Mods
April 14th, 2010 categories: Real Estate News
The distressed homeowner finally got some slack from the California legislators in the form of Senate Bill 401 which FINALLY aligns California with the Federal Forgiveness Act.
Yes, you heard right! For all those Sacramento home sellers who either lost their homes to Foreclosure or sold their home in a Short Sale, as of Monday, the State of California will not tax you on difference between what you owed on your mortgage and what the house or condo sold for. By the way, this also applies to those homeowners who were approved for loan modifications, too.
This CA tax break applies to debts discharged from 2009 through 2010 for principal residence. There is a cap for this tax relief at $500,000 and owing no more than $800,000. And if you have already filed your 2009 tax return, just use Form 540X Amendment but be sure and read the instructions before filling out 540X.
It’s been a long time coming and it will help so many who have lost their homes due to Foreclosure and Short Sale as well as those who have applied and received loan modifications. When you’re down and out, it seems a little contradictory to expect taxes to be paid on the difference between what was owed on the mortgage and what the home sold for. Just sayin…
As a Sacramento Realtor ®, I think there were probably quite a few home sellers and distressed homeowners that probably never even realized they could owe CA taxes on the difference from their mortgage amount and what the property sold for. Well, this is good news and hopefully gives some relief to many.
However, Shrek represents those current and past real estate homeowners who do NOT qualify for the CA tax relief nor the Federal Forgiveness Act. He’s happy for all of you but GREEN with envy since Second homes and Rental property do not qualify for the tax relief both Federally and State. However, there ARE some exemptions that would be best discussed with your tax consultant, such as bankruptcy etc.
We all dread tax time! I can’t begin to imagine adding to the dreaded April 15th deadline, the fact as a homeowner who lost a house back to the bank I would owe CA taxes on the difference. What a nightmare these folks have been living through!
Now, you can rest well and congratulations!
Click to view Foreclosed homes for sale
| Discussion: Comments »
Only 58 Days Left for Home Buyers!
March 2nd, 2010 categories: Real Estate News
Yes, you read that right. There are only 58 days left for all of you Sacramento home buyers to qualify for the home buyer tax credit. You must be in contract meaning accepted by a seller and have opened escrow otherwise you’ll be kissing $8,000 goodbye!
It is very difficult to get loans these days. As a Sacramento Realtor ® I have qualified home buyers with excellent credit who have had many obstacles to overcome during their loan process. And at the same time, received many calls from new home buyers who continue to tell me that getting a loan will be no problem.
Folks, it is a problem and you need to be PreApproved BEFORE looking at homes. The banks are not feeling fuzzy warm no matter how great your credit score is so get in there and get yourself approved by a qualified lender. Loans are hard to get these days and as an experienced Realtor ® I can’t stress enough how you must meet with your lender if you want to buy a house or condo.
There are many condo complexes that are new and not fully finished within the complex which makes getting a loan impossible. If you are interested in buying a condo be sure to check with your lender and see if the condo complex is one that your lender will loan money on.
If you are interested in seeing the hottest newest foreclosures just make a click and check out Sacramento Real Estate Neighborhoods for all of the latest homes for sale. Check out the other homes for sale in Sacramento and the surrounding areas as well.
Remember, the days are counting and you don’t have much time to qualify for the home buyer tax credit.
Other Related Articles:
Important Message for All Home Buyers…A MUST Read!
Is Your Condominium FHA Approved?
| Discussion: Comments »
Important Message for All Home Buyers…A MUST Read!
February 22nd, 2010 categories: Real Estate News
Have you been on the fence and thinking about buying a house? Times are a changing…interest rate will be going up which translates to less of a house you can qualify for.
Homes for sale in the Sacramento and surrounding areas continue to go into multiple offers and the tax credit for the first time home buyer and moving up or down home buyers who have lived in their homes the past 5 years will be ending shortly.
If you want to take advantage of the home buyer tax credit you MUST have an accepted offer and escrow open no later than April 30, 2010.
I hope you haven’t been on the fence waiting for the BEST Time to Buy real estate, otherwise you may find that you missed the bulls eye!
The Federal Reserve raised the discount interest rate charged to banks which means, it’s only a matter of time before the banks trickle this down to the consumer with higher interest rates paid on mortgage home loans and car loans. The New York Times article stated, ” it is a clear sign to the markets, politicians in Washington and the country as a whole that the era of extraordinarily cheap money necessitated by the crisis is drawing gradually to a close.” Based on this information, it is wise to get a 30 year fixed rate loan. No telling where the interest rates will peak once it starts rising.
Are you still waiting for the bottom of the real estate market? Best to call a Realtor ®, now…Wait no longer!!!
UPDATE: Just heard at the National Association of Mortgage Brokers in Washington D.C. that FHA has put the 5% downpayment on ice so it looks like FHA home buyers got a break and can continue to use 3.5% as their downpayment.
Other Related Articles:
A Sacramento Valentine Message for Home Buyers
Sacramento Home Buyers Find Homes in Multiple Offers
Kitchen Tip That Can Save You Money
| Discussion: Comments »
90 Day Flip FHA Rule Changed Feb. 1 2010
January 27th, 2010 categories: Real Estate News
Starting February 1, 2010, FHA will be lifting their 90 day ruling on the purchase of a flipped house. If a home buyer was trying to purchase a home that had been flipped, the buyer was not able to get an FHA loan unless and until they waited for a period of at least 90 days from the time the investor purchased the house.
Now, You CAN’T Buy That House may just NOT apply at least for 1 year!
HUD has agreed to waive the 90 day flip rule temporarily for one year.
There are a few conditions, though:
- All transactions must be at least arms length
- If the seller’s sales price is 20% or more above what they paid for the property, additional appraisals/home inspections will be required.
Interpretive policies of lenders are yet to be implemented so I’m sure there will be more as time develops and lenders determine if they want to accept HUDs new ruing.
Some agents think this only applies to FHA loans but it also applied to many conventional loans, as well.
Click to read the original HUD Ruling on Buying Flipped Property.
Related Articles:
Sacramento Will Become Real Estate Flippers
If You Are A Home buyer, Do You Know the 90 Day Rule?
| Discussion: 4 Comments »
What's Happening With Bank Owned Homes?
November 27th, 2009 categories: Foreclosure, Real Estate News
Have you noticed the decline in bank owned homes for sale in Sacramento? It seems the banks must go through some hoops before they can foreclose on a house or condo if they accepted Tarp funds. Each homeowner must be given an opportunity to apply for a loan modification and not everyone qualifies. This does slow down the process of the foreclosure since the banks are not known for their speedy process.
The banks have what is referred to as Shadow Inventory, 7 million nationwide according to DSnews.com article New Housing Crash…
Did you know that 1 out 4 homes are worth less than the outstanding mortgage?
Bank owned homes will continue to trickle in slowly. You can always look at bank owned homes for sale, choosing the county and city you are interested in and then selecting bank owned or short sale or traditional sale at Search for Homes
Be sure to check back here for more holiday fun added as we go into December.
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.
If you have a real estate question that you would like an answer to by Gena Riede, Sacramento Realtor ® specializing in helping home buyers and home sellers be sure to check out and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate Voice | Discussion: Comments »
New Facts About Home Buyer Tax Credit
November 11th, 2009 categories: Home Buyer, Real Estate News
Sacramento, CA
It’s Veteran’s Day and I want to thank all those who sacrificed their lives for us each of us and those that continue to help make this Country free. Give a Veteran a hug today and thank them.
Until the President signed the bill to extend the Home Buyer tax credit, it was merely speculation and wishful thinking on our part. Friday, November 6th, President Obama signed the bill extending the current $8,000 home buyer tax credit until April 30, 2010.
The caveat to this date is that if you have a ratified contract in place on April 30, 2010, then you will have until July 1, 2010 to actually close and be eligible for the tax credit. Also, if you file your income tax separately then, there is a $4.000 tax credit.
Also, any home buyer who is a current homeowner and lived in their home ( used as their primary residence) for 5 years of the past 8 years can also get $6,500 tax credit.
Many of the home buyers worked with did not qualify for the tax credit due to their income, however this too has changed. Now, a home buyer’s income can be as high as $125,000 per person and $225,000 for couples.
There is a cap on how much the house or condo the home buyer is purchasing and that cap is $800,000
Remember to attach the HUD statement to your tax return as this will serve as proof of your home purchase.
Click for chart explaining the Home buyer Tax Credit showing the difference in the previous tax credit and what is part of the new tax credit bill provided by the National Association of Realtors.
So, don’t delay…get your PreApproval letter from your Lender and let’s get started. If you’ve talked to any home buyer in the past year, then you know it takes an incredible amount of time to get a house these days. Now, is your time to become a homeowner.
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.
If you have a real estate question that you would like an answer to by Gena Riede, Sacramento Realtor ® specializing in helping home buyers and home sellers be sure to check out and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email.
| Discussion: Comments »
Rancho Murieta Deal SMELLS Like Fish!
November 4th, 2009 categories: Rancho Murieta, Real Estate News
Did you happen to watch Channel 10 Monday night when they aired a fishy story about a home that sold in Rancho Murieta?
Was this an inside job? Does this happen in other areas? Is there a cover up?
Well, for those who didn’t happen to see the news, it seems that a 3,803 square foot under priced luxury home sold in a mere 13 minutes from being entered into the MLS.
You ask yourself why is that so unusual? It IS… and in this case it seems that this house was a bank owned home for sale for about $200,000 under the going market for an asking price of $460,000. You ask, who was the bank? Oh, the bank was US Bank.
Ready for the kicker, the smelly fish?
Seems the asset manager for US Bank, Linda Merrihew who just so happens to own a home in Rancho Murieta and “guided the property through the foreclosure process” has a son Lance Merrihew who bought this under-priced luxury home in 13 minutes. oh yes, he owns another home in Rancho Murieta, too. (Someone made a mistake on the sold price. MLS says $460,000 and the tax records say $465,000). The smell just continues. Do you think the share holders at US Bank know about this one???
The fish smell is tremendous on this one! It smells all the way from Rancho Murieta to Sacramento.
Bet you wish your mother worked as an asset manager and you could underpay and get a house in 13 minutes from it going public on MLS. Wow, that’s pretty fast offering writing and approval! Be sure to read Realtors Question Rancho Murieta Foreclosure Sale.
Hey, maybe that’s a solution for all the home buyers having trouble getting their offers accepted…I’ll just become an asset manager…or not.
Click Sacramento MLS where you can pick any community or city around Sacramento and see homes for sale or simply click on the search icon and pick the area you are interested in finding a home or condo for sale in . As a Certified Distressed Property Expert, I am here to help you avoid foreclosure. Let’s talk and see if you qualify for a Short Sale. Your Short Sale agent.
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