Thursday, July 07, 2011

Homes Sold In Arleta in June 2011

8858  Dorrington Av  Sold:$190,000  2BR/1BA  Sqft: 848  Lot: 6120 On The Market: 61 Days  Short Pay

13276 Reliance ST ARL $ 195,000 3/2 1954/ASR 1,199 6,099 10/10 N 6/20/11 REO

13565 Sunburst ST ARL $ 233,000 3/2 1954/ASR 1,107 6,100 5/5 6/24/11 STD

10029 Beachy AV ARL $ 250,000 3/2 1950/ASR 1,440 17,370 3/3 6/10/11 STD

14057 Gain ST ARL $ 252,000 4/2 1951/EST 1,400 6,240 47/47 6/30/11 REO

13655 Muscatine ST ARL $ 260,000 3/2 1951 1,274 5,616 112/112 6/17/11 REO

13637 Ottoman ST ARL $ 267,000 3/2 1950 1,159 7,680 94/94 6/6/11 SPAY

9363 Sandusky AV $ 270,000 3/2 1954/ASR 1,544 6,000 0/0 6/30/11 STD

14020 Gain ST ARL $ 270,000 3/1 1957/ASSR 1,554 8,000 47/136 6/15/11 STD

8818 ROSLYNDALE AV ARL 502E7 $ 272,000 3/2 1953/ASR 1,257 6,016 225/225 6/27/11 SPAY

13580 Bromwich ST ARL $ 273,000 3/2 1952/ASR 1,236 6,105 115/115 6/19/11 REO

13761 Rayen ST ARL $ 285,000 3/2 1952/ASR 1,332 5,757 38/38 6/7/11 STD

13833 Correnti ST ARL $ 295,000 4/2 1950/ASR 1,406 6,060 33/33 6/15/11 REO

13780 Sunburst ST ARL $ 300,000 3/2 1953/ASR 1,622 5,997 37/37 6/6/11 STD

10503 SHARP AV ARL $ 325,000 4/2 1999/ASR 1,665 7,675 17/17 6/30/11 STD


Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant
http://www.granadahills.kwrealty.com  Real Estate News, Mortgages, Trends





Friday, July 01, 2011

Will Bank of America Lower The Balance of Your Mortgage Loan?

Bank of America is offering…PRINCIPAL REDUCTIONS!

You read that right..the nations largest lender is now going to offer a program to bail out underwater owners…here are the details directly from BofA:   CALABASAS, Calif. — Bank of America, a leader in developing and carrying out programs to help financially distressed homeowners, is leveraging the federal government’s Hardest Hit Fund (HHF) initiative to begin pilot programs of principal reductions for customers in Arizona who owe considerably more on their mortgage than their property is worth in today’s depressed market.

The bank has become the first major mortgage servicer to send letters of interest to homeowners who may qualify for HHF-supported principal reductions in these states. Previously, Bank of America began testing and implementing new programs for unemployed homeowners in several other states receiving HHF support.

“Bank of America remains committed to helping distressed borrowers remain in their homes through a variety of programs,” said Terry Laughlin, executive vice president. “Since the Obama administration established the Hardest Hit Fund (HHF) initiative one year ago, Bank of America has worked closely with both the Department of Treasury and state housing agencies to design and implement the program to provide interim payment assistance to unemployed borrowers, as well as funding for loan modification assistance to delinquent borrowers. We are excited this program is coming to fruition.”

Through the Arizona pilot program, Bank of America customers experiencing financial hardship may be eligible to have the amount owed on their mortgage reduced through matching contributions from the state and from participating mortgage investors. Bank of America has begun mailing letters to customers in those states who may qualify for the assistance based on state program and investor guidelines. The offers are being made proactively in conjunction with the solicitation process for the federal government’s Home Affordable Modification Program.

Bank of America also is finalizing processes for a pilot principal reduction program with the Nevada Affordable Housing Assistance Authority and is in advanced discussions with the California Housing Finance Agency to begin a pilot program with that state.

Bank of America established its leadership in providing solutions for severely underwater homeowners last spring with an innovative principal forgiveness program for eligible customers under its own National Homeownership Retention Program. HHF will provide assistance to additional homeowners who, mainly due to drastic decreases in home values in the last three years, are upside-down on their mortgages.

The HHF unemployment program offers qualified borrowers mortgage payment assistance for up to 36 months while they are unemployed, depending on state program guidelines. Bank of America is currently involved in pilots of unemployment assistance programs in California, North Carolina, South Carolina, Ohio, Oregon, Lee County, Florida, and Washington, DC. Customers who are interested in these programs should work with their state housing finance agencies to determine their eligibility.

Bank of America will continue expanding these programs on a state-by-state basis as agreements are reached with interested housing finance agencies in other HHF-grant states. All HHF programs are targeted to low- and moderate-income homeowners, and eligibility also depends on investor participation.

Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 57 million consumer and small business relationships with more than 5,800 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries.

When is Bofa going to start the pilot program in California? I hope it happens soon, since there is still plenty of homeowners in distress that need help as soon as possible.


Wednesday, June 29, 2011

Bank Repossessions Down 29% Over 12 Months

Foreclosure filings experienced their eighth straight month of declines, according to RealtyTrac.In May, filings fell 33% from a year earlier and 2% month-over-month, according to the online marketplace of foreclosed properties. The number of homes that were repossessed (referred to as REOs or real estate-owned properties) in May also declined to 66,879, down 3.8% from April and 29% year-over-year, the firm said.

The huge year-over-year drop in foreclosures doesn't necessarily mean the housing market is staging a recovery, however, James Saccacio, the CEO of RealtyTrac, says the declines are likely due to lingering effects of the "robo-signing" scandal, which broke last September, when it was discovered that banks were playing fast and loose with foreclosure documents.

In some cases, it was found that banks brought foreclosure proceedings upon homeowners when they had no standing to do so. Sloppy paperwork sometimes made it impossible to tell which entity was the rightful owner of the mortgage notes.

To help fix the mess, foreclosure proceedings were temporarily suspended. Even though the suspension has since been lifted, the pace of foreclosures remains significantly slower as banks more thoroughly review each case to ensure they are being handled legally and properly.

"Foreclosure processing delays continue to mask the true face of the foreclosure situation," said Saccacio. "Lenders are somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures."

There's another factor at play, as well. The banks can't sell the homes they've already seized so they aren't as incentivized to repossess more homes.

"[There's] weak demand from buyers, making it tough for lenders to unload their REO inventory," said Saccacio. "Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month."

The banks don't want to take on the expense of maintaining the homes -- property taxes, heating costs, repairs and insurance -- if they can't sell them quickly.  Selling off the inventory of repossessed homes is crucial to the housing market, said Jim Gillespie, CEO of Coldwell Banker. Sold at steep discounts, REOs compete with new homes for buyers and have severely depressed new home sales.

"That's a critical element for the economic recovery," said Gillespie. "If new homes were selling anywhere close to their levels of five years ago, it would add a full point to the GDP."

The steepest drops in filings have come from judicial states, ones in which the courts are involved in repossessions. In these states, where foreclosure proceedings are subject to the scrutiny of the courts, it appears banks are taking special care to make sure they've stamped out the last vestiges of the robo-signing issues.

Nevada, where most cases are handled outside of court, continued to be foreclosure central. One of every 103 households received a notice of some kind in May. However, that was an improvement of 23% compared with May 2010. Arizona, with one filing for every 210 households, and California, one for every 259, were second and third.

The judicial state of Florida, where the housing market is no better, has seen a much greater drop-off in filings over the past year, down 62%. It now has the eighth highest foreclosure rate, of one filing for every 461 households. A year ago, it was in the top four, along with the other "Sand States." provided by cnn money.

Even though bank repossessions are down they are still going on since the unemployment rate is still high in the US up to 9.1%, Florida at 10.6% and California at 11.7%. When employment goes down then the repossession are going to be down as well.


Tuesday, June 28, 2011

Los Angeles Home and Condo Sales Statistics as of 062411

As you can see the number of condo and condos sale in May 2011 went down 25% and the price also came down 9%. The home and homes market in May 2011 the number of units went 19% and the price went down 8%. That is showing us that the  market has slowed that a little bit and he reason are as follow: The bank are nor releasing all the foreclosures at once, that's why the number of units sold in going down.


 Single Family Residence
 Time Period Number of Sales Median Sale Price 
 May 2011 4,178 $324,000 
 May 2010 5,154 $350,000 
 Apr 2011 4,297 $333,000 
 Apr 2010 4,619 $335,000 
 2011 YTD 22,074 $325,000 
 2010 52,172 $340,000 
 Condominium
 Time Period Number of Sales Median Sale Price 
 May 2011 1,312 $300,750 
 May 2010 1,731 $339,000 
 Apr 2011 1,378 $290,000 
 Apr 2010 1,408 $316,000 
 2011 YTD 7,293 $295,000 
 2010 17,507 $320,000 

Thursday, June 23, 2011

Mortgage Relief For Home Owners

Mortgage Workouts, Now Tax-Free for Many Homeowners; Claim Relief on Newly-Revised IRS Form


WASHINGTON — Homeowners whose mortgage debt was partly or entirely forgiven during 2007 may be able to claim special tax relief by filling out newly-revised Form 982 and attaching it to their 2007 federal income tax return, according to the Internal Revenue Service.

Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was $2 million or less. The limit is $1 million for a married person filing a separate return. Details are on Form 982 and its instructions, available now on this Web site.

“The new law contains important provisions for struggling homeowners,” said Acting IRS Commissioner Linda Stiff. “We urge people with mortgage problems to take full advantage of the valuable tax relief available.”

The late-December enactment means that reporting procedures for this law change were not incorporated into tax-preparation software or IRS forms. For that reason, people using tax software should check with their provider for updates that include the revised Form 982. Similarly, the IRS is now updating its systems and expects to begin accepting electronically-filed returns that include Form 982 by March 3. The paper Form 982 is now being accepted, but the IRS reminds affected taxpayers to consider filing electronically, which greatly reduces errors and speeds refunds.

The new law applies to debt forgiven in 2007, 2008 or 2009. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may qualify for this relief. In most cases, eligible homeowners only need to fill out a few lines on Form 982 (specifically, lines 1e, 2 and 10b).

The debt must have been used to buy, build or substantially improve the taxpayer's principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.

Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax-relief provision. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. See Form 982 for details.

Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. For debt cancelled in 2007, the lender was required to provide this form to the borrower by Jan. 31, 2008. By law, this form must show the amount of debt forgiven and the fair market value of any property given up through foreclosure.

The IRS urges borrowers to check the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home ( Box 7).

Note: Legislation enacted in October 2008 extended this relief through 2012. Thus this relief now applies to debt forgiven in calendar years 2007 through 2012.

Related Items:

Frequently asked questions on the Mortgage Forgiveness Debt Relief Act

Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness

1099-C

Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments

For more update information on the Mortgage Relief Act check the Irs website: http://www.irs.gov/






Friday, June 10, 2011

Steps To Follow When Buying a Home

Buying a home can be stressful. There are so many questions to be answered and decisions to be made, such as where you should live, what can you afford, and how do you find a real estate agent. Eventually, a whole new set of questions start coming, like, what color should you paint the kitchen? Thankfully, there are more tools than ever to help buyers answer these questions right from the get-go. To make your home shopping process, from shopping to moving in, easier and less stressful, follow these tips:


Personal Finances – Make sure you’re financially ready to take on home ownership before you meet with an agent or starting looking at homes. That means cleaning up your credit and saving enough money for a down payment (20 percent is ideal), and extra costs like home insurance, property taxes and closing fees. Boost your credit score with help from an app like BillTracker which helps you manage when your monthly bills are due. A site like Mint.com lets you create a budget with specific savings goals in mind, such as buying a house.

Where to Live - Before you start looking at specific homes, narrow down the neighborhoods you’d like to live in based on your lifestyle. Transit Score can help you understand your commuting options, Walk Score will show you how many amenities, like shops and restaurants, are within close proximity, and Zillow Real Estate Market Reports lets you compare what’s happening with home value trends in different neighborhoods. But, don’t stop there. Continue your research when you are driving around town, by using real estate apps for iPhone, BlackBerry or Android to get a sense for home prices in different areas.

Finding an Agent - Hiring the right agent can be one of the most important decisions you will make during the home buying process. The right agent can save you precious time and money. So, in addition to following a recommendation from a friend or co-worker, check out local agent ratings and reviews. It’s helpful to know the experiences that other people have had working with a particular agent.

What Can You Afford? – When you’re standing in the living room of your dream home it’s easy to get caught up in the emotions of such an important investment. Before that happens, get a financial reality check using an app like the Zillow Mortgage Marketplace iPhone App to help you figure out if you can afford the home and how the mortgage payment would affect your monthly budget. Once you’re ready, you can get personalized loan quotes and then contact a lender to start the pre-approval process right from your phone.

Moving - Nobody likes moving. It’s a never-ending process with so many details to tie up. Thankfully, apps like Moving List, (iPhone, iPad) Moving Checklist (BlackBerry) and Moving Planner (Android) can help you get organized. These apps come with pre-populated to-do lists that you can edit and organize by categories or dates. Some even help you decide what to pack and what to throw away.


Decorating – You’ve bought the house, the boxes are unpacked, and now comes the fun part – decorating your house to reflect your personal style. And do-it-yourself home decorating has never been easier. A site like Decomash allows you to take a photo of your living space with your iPhone and the app will find complementary artwork that matches your room. Sherwin Williams Color Snap enables you to capture real-world colors and match them to one of 1,500 Sherwin Williams paint colors.







Interest Rate For This Week

Fixed and adjustable-rate mortgages sank to new lows for the year, continuing a downward spiral for the eighth straight week, Freddie Mac reports in its weekly mortgage market survey.

Here’s a closer look at how rates fared for the week:

▪ 30-year fixed-rate mortgages averaged 4.49 percent this week, down from last week’s 4.55 percent average. A year ago at this time, 30-year rates averaged 4.72 percent.

▪ 15-year fixed-rate mortgage rates averaged 3.68 percent--its lowest level since November 2010. A year ago at this time, the 15-year rate averaged 4.17 percent.

▪ 5-year adjustable-rate mortgages averaged 3.28 percent this week, slipping from last week’s 3.41 percent average. A year ago at this time, the 5-year ARM averaged 3.92 percent.



Thursday, June 09, 2011

Short Sales Tips For Seller

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

Your property is worth less than the total mortgage you owe on it.

You have a financial hardship, such as a job loss or major medical bills.

You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:

Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).

Help you set an appropriate listing price for your home, market the home, and get it sold.

Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).

Ease the process of working with your lender or lenders.

Negotiate the contract with the buyers.

Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:

A hardship letter detailing your financial situation and why you need the short sale

A copy of the purchase contract and listing agreement

Proof of your income and assets

Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

If you have only one mortgage, the review can take about two months.

With a first and second mortgage with the same lender, the review can take about three months.

With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.

Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

 

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Scammers Are Using For Sale Home Listings as Rentals

Some home owners are getting a surprise when a person shows up on their doorstep, with a lease agreement in hand, saying that he or she is renting out their home, which isn’t for rent but for sale.

Law enforcement and real estate professionals are finding a growing scam involving for-sale listings being promoted as rentals--without home owners’ consent.

Scammers are taking listing information of homes for-sale--including photos--and then reposting that information on rental sites and tweaking it to pass the home off as a rental. The scammers then use a fake lease agreement and collect rent from unsuspecting consumers.

And when the scammers don’t present keys for the property, they give the unsuspecting renter permission to call a locksmith to gain access to the home.

Les Sulgrove, president of the Des Moines Area Association of REALTORS®, recently issued a warning to association members about the scam. He suggested real estate professionals set up Google alerts for the home addresses they’re listing so they’ll learn if their clients’ information is being misused on another site.

“All it takes is cutting, pasting, and changing some key pieces of data,” Geoff Greenwood, spokesperson for the Iowa Attorney General’s office, told the Des Moines Register. “People find out the hard way what they paid for wasn’t for sale or for rent.”

Source: “Growing Online Scam Uses Legitimate for-sale Home Listings to Trick Renters,” Des Moines Register (June 5, 2011)



Monday, June 06, 2011

El Gobierno Esta Presentando Una Ayuda Para Los Propietarios de Casa En Problemas

Noticias de última hora: Nuevo Programa de Obama rescata a los propietarios bajo el agua


05 de junio 2011 · Deja tu comentario Su fácil de leer esta historia y ser escéptico ... después de todo, 2012 es un año electoral. Muchos verán este programa propone como nada más que una buena compra de edad votación de moda .... Sin embargo usted lo ve, principales deducciones saldo de la hipoteca están de vuelta en el juego.   .. Eso es correcto, el programa de patrimonio neto negativo está de vuelta sobre la mesa.

¿Hay alguna forma en que algo como esto va a suceder dado el republicano (y Tea Parties) intentó pasar a un enfoque más conservador para el gasto? Recuerde que la gente, este es SU dinero del pagador de impuestos el dinero ... ... que se va a reducir los saldos de capital de la hipoteca.

Comparte tus pensamientos .. es hora de rescatar a los propietarios de viviendas?

La administración Obama quiere ayudar a más estadounidenses que luchan permanecer en sus hogares mediante la reducción de la cantidad que debe en sus hipotecas en problemas, un alto funcionario del Tesoro dijo el sábado.

"Estamos definitivamente tratando de facilitar la reducción de más capital," dijo Timothy Massad, en calidad de secretario adjunto del Tesoro para la estabilidad financiera. "Es una pieza muy importante de la solución global", dijo.

El gobierno está intentando a través de programas financiados por los contribuyentes para evitar que los propietarios pierdan sus casas. Casi $ 50 mil millones han sido retiradas del rescate de los bancos 700 mil millones dólares conocido como Programa de Alivio de Activos en Problemas, o TARP, para ayudar a propietarios en dificultades.

La persistencia de alto desempleo y un débil mercado de la vivienda suponen una amenaza para las perspectivas del presidente Obama reelección el próximo año.

Hasta ahora, uno de los programas ha ayudado a unos 670.000 propietarios en dificultades ganar más bajos pagos de la hipoteca. Pero eso ha hecho muy poco para ayudar al mercado de la vivienda en general, que se mantiene deprimida como en otras partes de la economía han comenzado a recuperarse.

Un exceso de casas en venta, las ejecuciones hipotecarias, la escasez de crédito y la demanda poco han impedido la recuperación de la vivienda. Los datos recientes muestran que los precios cayeron por debajo de la casa baja visto en abril de 2009 durante la crisis financiera.

"Este ha sido un mercado de la vivienda muy, muy difícil como consecuencia del hecho de que pasamos por una crisis financiera terrible", dijo Massad periodistas en el marco de un evento de prevención de ejecuciones hipotecarias en Washington.

Uno de los programas de la administración ayuda a propietarios en dificultades evitar la ejecución hipotecaria, proporcionando modificaciones permanentes préstamo.

Otro programa, el aumento gradual de ahora, da a los estados que han sido los más afectados por la caída de precios de las casas de financiación para ayudar a reducir el principal del préstamo de un prestatario, entre otras cosas.

"Creo que los va a hacer una gran diferencia en cuanto a los problemas de los propietarios de viviendas desocupados y la caída de precios de la vivienda", dijo Massad. Sin embargo, agregó que el proceso fue complicado.


Saturday, June 04, 2011

Monday, May 30, 2011

Some Wise Quotes

You are brave...when you overcome your fear and help others to do the same.


You are happy...when you see a flower and are thankful for the blessing.

You are loving...when your own pain does not blind you to the pain of others.

You are wise...when you know the limits of your wisdom.

You are true...when you admit there are times you fool yourself.

You are alive...when tomorrow’s hope means more to you than yesterday’s mistake.

You are growing...when you know what you are but not what you will become.

You are free...when you are in control of yourself and do not wish to control others.

You are honorable...when you find your honor is to honor others.

You are generous...when you can take as sweetly as you can give.

You are humble...when you do not know how humble you are.

You are merciful...when you forgive in others the faults you condemn in yourself.

You are beautiful...when you don’t need a mirror to tell you.

You are rich...when you never need more than what you have.

You are you...when you are at peace with who you are and are not.

Friday, May 27, 2011

Investors Will Dominate The Real Estate Market In the Next Two Years


Investors are expected to outnumber traditional home buyers three to one in the next two years, according to a national survey by Move Inc.

These investors also are ready to compete with traditional first-time home buyers to snag the best deals. About two-thirds of investors say they expect the problems that first-time buyers are having with financing and getting mortgages will work in their favor in competing for properties. One in five investors say they plan to purchase properties using cash-only and 80.5 percent expect cash discounts on properties from sellers.

Some additional findings from the Move Investor survey about this growing segment of home buyers are:

--43.5 percent of investors expect it to get more difficult to find housing bargains in the coming months. Twenty-two percent expect prices to rise in the next six to 12 months, while 53 percent expect prices to stay relatively flat.

--Half of the real estate investors surveyed say they plan to hold their properties for five years or more. Only 11 percent expect to sell within 12 months of buying it.

--Nearly half of the investors surveyed expect a profit of 20 percent or more from their investment, 40 percent expect a profit of 10 percent, and 6.5 percent expect a 5 percent or less return on investment.

--Nearly half of investors say they plan to live in their investment property until it's sold or turned into a rental property.

--About 56 percent of investors plan to turn their investments into rental properties. Also, the survey found that 28 percent plan to purchase a vacation property and 30 percent reported an interest in buying retirement property as an investment.

--Nearly 60 percent of investors say they're new to real estate investing. About 33 percent are considering their first investment purchase and 8.5 percent are in the process of buying and selling their first investment property. Of those surveyed, only 36.5 percent had experience in more than one property transaction.

"This data suggests today's climate is hot for investing and is attracting a lot of new people that don't fit the stereotypical deal-driven flippers that buy and sell properties quickly," says Steve Berkowitz, Move Inc. chief executive officer. "They're mostly entrepreneurial individuals that will make vital contributions to local communities by investing their own money and sweat equity to improve and maintain properties. These personal sacrifices made over the long run will help improve housing stocks, home values, property tax bases, and thousands of local communities."

Source: “New Survey Shows Local Real Estate Markets Heat Up With Investors,” Move.com (May 26, 2011)


Thursday, May 26, 2011

Is the Fha Down payment Going To Increase To 5 % ?

Republicans on the House Financial Services Committee have drafted legislation that would raise the minimum down payment for FHA mortgages to 5 percent, cut FHA loan limits in most markets, and move the Agriculture Department's rural housing program to FHA's parent agency, HUD.


Though the draft bill has not been introduced, titled or assigned a number, it is expected to be the main subject of a hearing Wednesday before the Subcommittee on Insurance, Housing and Community Opportunity, chaired by Rep. Judy Biggert, R-Ill. After that, the bill is likely to be formally introduced and sped through subcommittee and committee votes and head for action by the full House.

The text of the draft bill appears to be a partial answer from House Republicans to the Obama administration's call earlier this year for a smaller federal government footprint in housing.

By lowering maximum FHA loan limits in large numbers of local areas -- well below even the limits that are already scheduled to kick in Oct. 1 -- the bill would squeeze down FHA loan volume across the country, cutting a resource for some home purchasers who can't obtain a conventional mortgage.

Here are some examples of current FHA loan ceilings, how they're scheduled to adjust in October, and where they'd end up under the Republican plan:

•In Los Angeles County, the present high-cost area maximum is $729,750, which was set by the federal economic stimulus legislation passed by Congress following the financial crisis of 2008. That ceiling is scheduled to drop to $625,500 Oct. 1. Under the new bill, however, the maximum FHA-insured loan amount allowed in Los Angeles would be $412,500 -- a $317,250 plunge from the current limit and $213,000 below the scheduled reduction this fall.

•Other counties in high-cost California would experience even sharper declines, such as Monterey, where the maximum would decline by $436,000 and Contra Costa, where the drop would be $379,750. Every county in California -- from big urban communities to rural areas -- would be on the losing end of the new FHA equation, and most reductions would be in the six figures.

•The lower limits would be significant in other states as well. Monroe County, Fla., would see maximum FHA loan limits go from $729,750 to $425,000. Under the scheduled Oct. 1 statutory decrease, the county -- which comprises the Florida Keys -- would have a $529,000 maximum. Sarasota, Fla., would see a $261,250 drop under the bill, Miami-Dade a decrease of $161,250, and Orange County (Orlando) limits would decline by $128,750.

•Large counties in the high-cost areas around Washington D.C. would see FHA limits drop by anywhere from $398,500 (Prince George's, Md.) to $366,250 in Baltimore. Most New England and mid-Atlantic states would end up with lower loan ceilings along with major markets in the Midwest and the Rocky Mountain states.

The FHA loan limit formula would be revised to 125 percent of the median home sale price in the local county under the bill, and the current $271,050 floor for loan limits nationwide would disappear.

Though major housing, real estate and lending groups had no comments pending the Wednesday hearing, they are likely to oppose the sharp cuts in loan limits.

Mortgage industry consultant Brian Chappelle, head of Potomac Partners in Washington, D.C., is scheduled to testify at the hearing and told Inman News that the higher loan ceilings are a bad idea.

Audits of FHA loan performance, Chappelle said, repeatedly have shown that higher-balance mortgages default and trigger claims against FHA's insurance funds at lower rates than smaller-balance loans.

"FHA is essentially an insurance company," he said, "and you need those (higher-balance) loans to spread the risk," just as private sector insurers do.

The Republican bill's call for a 5 percent minimum down payment on FHA loans also is likely to draw criticism from industry groups.

The National Association of REALTORS® and the National Association of Home Builders have opposed such a move in the past, arguing that there is no statistical evidence that adding 1.5 percent onto the current 3.5 percent minimum would significantly affect default probabilities of new FHA loans.

However, the higher down payments, along with the bill's prohibition of financing of closing costs, would make home purchases more difficult for substantial numbers of consumers.

Chappelle estimates that "40 percent of FHA borrowers would fall out" -- unable to afford the transaction -- "if they go to 5 percent down."

The bill also proposes shifting the Agriculture Department's rural housing program to the U.S. Department of Housing and Urban Development. A Republican staff member said "HUD has the housing responsibility and the expertise," so the change is logical.

However, proponents of the rural housing programs may not want to risk being swallowed up in an urban-oriented agency, nor is the Agriculture Department likely to want to lose a chunk of its traditional turf.

Where's the bill headed? Republicans say they are merely seeking to move the agenda they share with the Obama administration -- the smaller footprint concept -- which is, in turn, part of a larger agenda to phase out Fannie Mae and Freddie Mac.

Passage of the bill by the full House appears to be a real possibility, as Republicans are in control on that side of Capitol Hill.

But all bets are off in the Senate, where Democratic support for continuing FHA's role in the market is far stronger, and where dramatic cuts in loan limits in places like California, New York, Massachusetts and the East Coast's expensive markets likely won't fly.

Ken Harney writes an award-winning, nationally syndicated column, "The Nation's Housing," and is the author of two books on real estate and mortgage finance.

Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant
http://www.granadahills.kwrealty.com  Real Estate News, Mortgages, Trends


Tuesday, May 24, 2011

How do I know when is the best time to invest?

Very often I hear potential homebuyers ask the following questions:


• Is this the best time to buy a home or should I wait?

• I hear home prices are still declining and rates are going to be even lower, should I wait?

• What if I buy a home and prices go down, am I going to lose my home?

When we decide to invest, the first thing that we must accept is the fact that no one really knows when the absolute bottom of the market will be, or exactly when the market trends will change, until after it happens; still not sure? Let’s analyze what happened a few years ago:

1. The largest investment bankers of the country lost hundreds of billions of dollars funding risky loans based on the belief that homes would continue to appreciate in value and they didn’t

2. When the financial crisis started, most “experts” predicted that this was going to be the smallest Real Estate bubble in history and that prices would start appreciating soon, we all know what really happened.

Some of us like to wait until we hear in the News that it is a good time to invest, however we seem to forget that Newscasts only report things that have already happened, they never predict, they only report; still in doubt? Then ask yourself, do you remember hearing any news channel reporting about the financial crisis before it happened? Of course not, we only heard of it until after it was already happening.

A second important aspect about investing is to always remember the golden rule:”buy when prices are low and sell when prices are high”, unfortunately most of us will wait to purchase until we see prices are on the way up instead of when they are down.

Now that we know the basics, let’s review the other costs associated with owning a home, to make sure that we are being responsible; you will pay hazard insurance, property taxes, mortgage insurance (if you are investing less than 20% down payment) and last but not least, the interest that you pay on your mortgage; if we take in consideration the interest, the average homeowner will have paid 3 times the price of their home after the 30 years term, financial costs (interest) is therefore the highest cost of homeownership.

In conclusion, we can safely say that a good time to invest would be the combination of low home values and low interest rates, if we acknowledge that rates are at the lowest they have been in the last 50 years and home values are 40% of the peak of the market, would you agree that we are experiencing one of the best times to invest in a home?

Ruben Romero
Camino Real Mortgage Bankers