Living in Contra Costa County

Sell the Cars – Buy a House!

OK this is my creative close we did last year. Client had lots of money but lots of debt. He wanted the house. Debt to Income Ratio was looking bad.

We are in contract and due to close in a couple of weeks when Loan Officer calls me. He tells me that the buyer had written off a lot of expenses on his auto usage that was not reimbursed by the company. Underwriters said the DTI did not work.

Now I am not sure of all the ins and outs of my clients relationship with his employer; but it seems quit tight and he has a lot of flexibility on his compensation and how he takes it. One issue that came up is at some point in the recent past my client had taken a job with another company; with the primary purpose of learning their market and strategies. Then went back to work for his original employer. One of the down sides of this is that the underwriters did not count all of the bonus money he was paid every year. (I think it had to do with the fact that some of it was structured as a recruiting bonus.)

Any way my client responds to this issue by saying and getting a letter from his employer stating that his duties had changed and he was no longer driving as much. This did not fly with the underwriters.

I kept bouncing ideas off the lender and then I hit one that he said might work. The Lender called the buyer and got him on board. The buyer talked to his employer:

Next step. They sold their cars. They had planned to pay them off when closing escrow to bring down the DTI. But they just went ahead and sold them. They sold his to his employer and he still got to use it. But this convinced the underwriters that he would no longer be taking the auto expenses he had claimed in the past.

Escrow Closed!

What's the Rate?

People often ask what the interest rate is. There are so many variables it is hard to give a simple answer.

However, in this on-line Wall Street Journal article the discuss the average 30 and 15 year loans across the country and the points involved for each loan.

I will give you a hint they are under 4% and that is amazing.

No two mortgages are a like. Comparing rates without looking at other factors is not a good way to do it.

If you need a referral to a quality lender give me a call and I will put you in touch with the right person.

Buying a Home can be a challenge on a budget.  However, the 203K loan will allow help you with Buying a Home and fixing it up while taking little out of your pocket.

For more information on Buying a Home, View Homes on Line, or get information on Loans go to HomePointRealEstate.com.

Many of us have heard of MERS and that banks cannot track title or prove ownership of the homes they have in foreclosure.  This is a real mess and I hope they get nailed for back transfer taxes and by the borrowers; but it could get even worse!

Bonds were sold based on these loans.  Now if the banks did not own the loans how could they put together bond packages on them?  You cannot sell something you do not own!  However, a lot of pieces of the loans were sold by them.

Lots of people lost money on these bonds, but maybe they can rescind the sales or sue the sellers for fraud?  After all they were sold something the seller did not own.

Everyone knows it is tougher to get a loan these days. Many buyers feel locked out from the possibility of borrowing. I spent a good part of my day talking to lenders about ways to help my clients get loans and exploring new possibilities.

Well I am going to provide you a few links to some lender blogs that offer a unique perspective and may give you a financing options to help you unlock the lending maze.

The first Blog Compares FHA Lending with Conventional Financing and can give you an idea of what both have to offer. Then a comparison of VA and FHA Lending will provide you more information on both of those types of loans. If you decide and FHA Loan is for you or you are buying a Fixer Upper FHA offers the unique 203K loans on top of the FHA loan.

I read a blog on a unique program this morning that is one of only two programs in this country offering 100% financing (The other being FHA). It is a USDA Loan.

In California there is a another program that may be returning called the CalFHA Loan. There are a number of associated programs all designed to help the first time buyer.

Finally, I will link you to a blog that give a short description of a number of loan types. Some described above and some are unique, including loans for the investor and commercial consumer.

If you are interested in Buying a Home or Selling a Home in Brentwood or anywhere in East Contra Costa County, Antioch, Oakley, Discovery Bay, Pittsburg, Bay Point and others please contact me.  I specialize in helping buyers of Bank Owned Homes.  For regular updates please subscribe to this blog.

In this drastic down market many people owe more on there home than they can sell if for. This is called being upside down. If you cannot afford the house payment of need to sell your options may seem limited. You can pay the bank the difference at the time of the sale, this could be hundreds of thousands of dollars or you can walk away from the house and return it to the bank (foreclosure).

The third option is a SHORT SALE. Short sales have been problematic, as many banks were not cooperating with the short sale. Most banks would not even talk to you until you had an offer in and then they would take months to get around to approving the sale. Frequently the potential buyer then moved on. I had heard that only 5 – 10% of short sale homes actually sold.

THE GOOD NEWS IS That Wachovia is working with Short Sale sellers. This includes any World Savings loans as Wachovia purchase World Savings. If the offers come in at market price they are quickly approving these sales with minimal documentation of distress from the sellers. In Short get the offer and the transaction is taking no more time than a normal sale.

TIME IS LIMITED as Wachovia has been sold to Wells Fargo. Soon the Wachovia structure will be pulled into the Wells Fargo structure. Wells Fargo may not continue the liberal Short Sale policy. If you have a Wachovia or World Savings loan you need to contact me now. Please Click Here to go to my web site. Submit the information for a home evaluation and I will provide a FREE home evaluation and follow up with you on Selling Your Home. 

BE CAREFUL ABOUT THE REALTOR YOU WORK WITH.  IMPORTANT SPECIAL STEPS MUST BE TAKEN TO MAKE SURE YOU ARE NOT HELD RESPONSIBLE FOR THE BANKS LOSS.

If you are interested in Buying a Home, especially a discounted Wachovia Short Sale or a Bank Owned Home please contact me ASAP while prices and interest rates are low.

If you are interested in Buying a Home or Selling a Home in Brentwood or anywhere in East Contra Costa County, Antioch, Oakley, Discovery Bay, Pittsburg, Bay Point and others please contact me. For regular updates please subscribe to this blog.

People have suggested I publish this on the public side.  Not just for Realtors so here it is.  I want to emphasis that I sympathize with most people that are foreclosed on.  I have had my financial challenges in the last several years too.

I’m going on another rant and not sure if I should post this on the public side. I am really ticked off by what I see people doing to homes when they are foreclosed on. Wait before you tune out. I am going to suggest a solution at the end of this.

We have all seen or heard about the following acts. Counter tops ripped off. Hammer taken to walls, counter tops, fire place surrounds, patio, plumbing cut, wells and septic systems destroyed, tubs left on for water to overflow throughout the now empty house, AC and heating units taken, built in appliances taken, cabinetry taken, etc. The one I have heard about by not seen is concrete poured down all the toilets. If you’ve got one I’ve missed add it in the comments section. My favorite, a really big name Realtor around here did some of the above, cut the carpet out and damaged the tile floor on the way out of her former home. She should know better.

I might understand some people taking the built in appliances if they paid for them apart from the house and really can use them somewhere else, but most of this is just spite and those things will end up setting in the garage at the in-law unit they will be living in. I also understand that many people loss the ability to keep the homes up long before they are foreclosed on and many foreclosed homes are maintenance deferred.

This sabotage is a crime. However, in an era when violent criminals are being put back on the streets on a regular basis I don’t think the cops will have the time or the energy to deal with this. However, lenders should document the damage. At some point in the future there may be an opportunity for civil recovery, especially if the damage was done after the foreclosure. Remember I am only suggesting this against malicious and wanton destruction which is doing no one any good; lenders, buyers, sellers or tax payers.

My other solution is two tiers on the credit reports. Those that get foreclosed on and cooperate and those that do not. As part of the recovery plan those that have cooperated should have a chance to rebuild their credit and buy another home in as little as two years. I know some will not want to give them a second chance, but these are unique times with lots of causes and many people loosing homes who are honest and hard working. Those that have destroyed the homes should never be given any kind of government backed loan again, or at least until after they pay for the damage they did. The lenders should have the well documented file to back up the black mark on the credit report. I only think this should be done in the extreme cases and it is important to have it well documented so lenders do not abuse this.

What do you think? And should I post this on the public side?  (You said yes and I just did!)

If you are interested in Buying a Home or Selling a Home in Brentwood or anywhere in East Contra Costa County, Antioch, Oakley, Discovery Bay, Pittsburg, Bay Point and others please contact me. For regular updates please subscribe to this blog.

Good news for home buyers worried out their job future. If you buy a home in California and use a Realtor you are eligible for a Free mortgage protection program.

To qualify you must:

• Be a first-time home buyer – someone who has not owned a home in the last three years.

• Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009.

• Use a California REALTOR® in the transaction.

• Purchase the property in California.

• Be a W-2 employee (cannot be self-employed)

You must complete an application before you close escrow. There are other limitations. Follow the link for more information on the program:

http://www.car.org/aboutus/hafmainpage/carhafmortgageprotection/

The price is certainly right. As I have always said, “If it’s free it’s for me.” The main thing is to use an actual Realtor who is qualified to help you find the right home.

Please contact me about home purchases in East Contra Costa County, Brentwood, Oakley, Discovery Bay, Anitoch, Pittsburg, Bay Point, and beyond.