Brad Yzermans - Murrieta, Temecula, & Menifee FHA-USDA Mortgage Loan Officer's Blog

New Laws affecting California Real Estate that you should know about in 2011

Wed, 05 Jan 2011 16:12:00 -0800

This is a great blog post of new laws in California that affect real estate. If you have any questions, I suggest you speak to Ralph Gorgolione.

Via Ralph Gorgoglione - California Sunset Team - Los Angeles (Relocation Certified - EcoBroker - Keller Williams Realty):

New Laws affecting California Real Estate that you should know about in 2011

There are some new laws coming out in 2011 that you need to know about as both a real estate agent and homeowner.

Now I'm not an attorney (at least not yet, anyway) but these are a few that jumped out at me first:

SB 1411 - This law provides that any person who knowingly and without consent credibly impersonates another actual person through or on an Internet Web site or by other electronic means (e.g., opening an e-mail account or an account or profile on a social networking Web site in another person's name) for purposes of harming, intimidating, threatening, or defrauding another person is guilty of a misdemeanor. The violation is punishable by a fine not exceeding $1,000 or by improsonment in a county jail not exceeding one year or by both. The injured person is authorized to bring a civil action against the perpetrator.

I wonder where the jurisdiction of the above law would be if the violater is in another state than the victim?

AB 1809 - This new law authorizes a home inspection to include, if requested by the client, a Home Energy Rating System (HERS) Program energy audit.

SB 183 - This law revises the TDS and MHTDS to include a disclosure regarding compliance with the smoke detectors and water-heater bracing laws (eliminating the need for separate disclosure forms). The TDS and MHTDS will also add a disclosure regarding carbon monoxide detection devices. This law enacts the Carbon Monoxide Poisoning Prevention Act of 2010. The law requires a carbon monoxide device (battery or hard-wired) to be installed in a "dwelling unit intended for human occupancy." A violation is punishable by a maximum fine of $200 for each offense. Owners of residential rental property must also comply with this law. Tenants are responsible to notify the owner of an inoperable or deficient carbon monoxide device. Installation Time Period: * On or before July 1, 2011 for existing single-family dwelling units * On or before Jan. 1, 2013 for all other existing dwelling units

SB 1221 - Under existing law governing trustee sales, the Notice of Sale cannot be filed until at least 3 months after the filing of the Notice of Default (NOD). This new law permits the filing of a Notice of Sale up to 5 days before the lapse of the 3-month period provided that the actual date of the sale is no earlier than 3 months and 20 days after the filing of the NOD.

SB 1087 - This law requires a defendant convicted of the crime of identity theft to pay restitution to the identity theft victim. The court order by the criminal court will be enforceable as if the order were a civil judgment.

SB 931 - Prohibits a lender from seeking a deficiency judgement after a short sale is completed, unless the homeowner commits fraud or waste to the property

Why do I have a feeling that the interview process may be more in depth now with the short sale property owner? Just a hunch.

HR 5297 - Requires any landlord receiving rental income to report via 1099 any payments made to contractors in total excess of $600

AB 1762 - An advance fee is defined as a fee that is claimed or received by a real estate licensee from a principal before fully completing the services or a listing that the licensee contracted or represented would be performed. This law redefines the term by adding certain exemptions. In particular, it exempts limited service contracts for stand-alone services. This means a licensee may provide stand-alone services performed on a task-by-task basis, for which compensation is received as each separate, contracted-for task is completed. To qualify for this exclusion, all services performed under the contract must be described in subdivision (a), (b), or (c) of Cal. Bus. & Prof. Code 10131. A contract between a broker and a principal that requires payment of a commission to the broker after the contract is fully performed does not represent an agreement for an advance fee. In addition, the law exempts the advertising of real estate or a business opportunity from the advance fee prohibition provided the publication or electronic media is not under the control or ownership of the broker.

AB 1373 - This law cracks down on the mailed advertisements sent to property owners offering, for compensation, to provide a copy of the grant deed or other record of title by making it a crime unless certain disclosures are provided and the advertisement does't mislead a person into believing that the company is affiliated with a government agency.

For a complete list from C.A.R. of new laws and changes in 2011, click here:

http://www.car.org/legal/2011-new-laws/?redirectFrom=login

Los Angeles Homes For Sale

Los Angeles Condos For Sale

Los Angeles Townhomes For Sale

Down Payment Assistance (CHDAP) for Inland Empire California First Time Home Buyers

Tue, 09 Nov 2010 03:50:30 -0800

The California Housing Finance Agency (CalHFA) is making it easier for California''s first time home buyer’s to qualify for the CHDAP 3% down payment or closing cost assistance program for the Inland Empire residents, which covers Riverside and San Bernardino County. CalHFA reduced the buyers minimum financial contribution to just 1%! On a home purchase of $200,000, the home buyer only needs to contribute $2,000 of their own funds!

Do you qualify? Lets find out with this checklist what is required.

What is CHDAP: The CHDAP is a 3.25% deferred payment junior/2nd loan up to 3% of the purchase price. This 3% can be used to pay your down payment or closing costs. Yes, California will actually loan you money and not require you make a monthly payment.…it’s almost like a grant in this aspect. Crazy huh? CHDAP stands for California Housing Downpayment Assistance Program.

Where is it Available: The CalHFA CHDAP 3% down payment assistance program is available for all counties in California. This includes cities of Temecula, Murrieta, Menifee, Winchester, French Valley, Corona, Riverside, Lake Elsinore, Canyon Lake, Sun City, Moreno Valley, Chino, Chino hills, Norco, Ontario, Rancho Cucamonga, Fontana, and all cities in California.

Who is Eligible: First time home buyers purchasing a primary residence. If you haven’t owned a home in the last three years, you qualify. This means if you had a foreclosure or short sale, you may qualify after your three year waiting period. This requirement is waived if you are a qualified Veteran or the property is located in a designated target area.

Home Buyer Education: Completing a home buyer education class is required for each borrower. This can often be done online and is easy.

Property Eligibility: Single family one unit residences only. Manufactured housing is not allowed. Condominium’s are allowed but extremely difficult right now to get qualified…..call me for reasons why.

Income Limits: Since the purpose of this program is to help first time buyers in the low to moderate income range, if you make too much you do not qualify. The limits are determined by county and the number of people living in the home.

Riverside & San Bernardino County: Range is from $54,600 to $102,950 depending on number of people in the house.
Orange County: Range is from $73,250 to $138,150 depending on number of people in the house.
Los Angeles County: Range is from $52,900 to $99,800 depending on number of people in the house.
San Diego County: Range is from $63,400 to $119,600 depending on number of people in the house.
Don’t see your county? Call me.

Sales Price Limits: The maximum sales price can vary depending if the home is an existing resale home or new construction and if the home is in a targeted or non-targeted area. I know, can they make it more confusing?

Riverside & San Bernardino County: Max sales price in non-targeted area is $450,000 and $550,000 in a targeted area
Orange County: Max sales price in non-targeted area is $656,775 and $802,725 in a targeted area
Los Angeles County: Max sales price in non-targeted area is $656,775 and $802,725 in a targeted area
San Diego County: Max sales price in non-targeted area is $627,750 and $767,250 in a targeted area

Frequently Asked Questions

Question #1: Do I have to live in the home for a certain number of years or is there a penalty if I sell in 3-5 years like so many other down payment assistance programs have? Answer: nope.

Question #2: Is the 3% CHDAP junior deferred payment loan forgiven at any point? Answer: Nope. Payment is due when mortgage is paid off, home sold, or title transferred.

Question #3: Are funds available for the CHDAP down payment assistance program? Answer: Yes. About $48 million left.

Question #4: What kind of loan is best used for the first loan? Answer: Depends. We need to discuss your situation to determine the best option for you.

Question #5: Does loan approval take longer for this program Answer: Not really. Review time by CalHFA is 3-5 days. If we receive all your pre-approval documentation on time and in order, we can still close in 30.

Question #5: Are non-occupant co-borrowers allowed when using down payment assistance? Answer: Nope, CalHFA won’t allow it, but I may have other down payment assistance programs that will.

Question #6: Is there a limit to how much the seller can contribute to paying closing costs? Answer: yes, 3%….it’s a CalHFA rule. Traditional FHA first loans allow up to 6%.

If you have a question about this or would like to get approved, please call me at (951) 215-6119 or email me at brad(at)homeloanartist.com. I’m here to help.

Be Glad You Missed the $8,000 Home Buyer Tax Credit

Tue, 05 Oct 2010 14:25:56 -0700

Inland Empire California Home buyers who were frantically making offers on homes this spring, but missed the $8,000 federal home buyer tax credit deadline on April 30, may be happy they did miss it.

Why? Because if they are still in the market to purchase a home, they could end up saving much more than $8,000 they received from the government.

How is that possible? Two reasons.

1. Interest rates have dropped about .5% since the first quarter of 2010. Assuming home prices are the same, on a $200,000 loan with a .5% lower rate, a homeowner would save about $21,544. That’s $13,544 more they would save by waiting to purchase now after the tax credit. Ok ok, no one keeps one loan for 30 years. If they just keep the loan for a more reasonable 12 years, they would have broken even.

2. The second reason is that home prices seem to have dropped, or at least stayed the same due to so many fewer buyers making offers. If home prices haven’t dropped, then there seems to be more credits being offered by the sellers and/or builders to attract buyers. I know for a fact that most homes are no longer receiving 20-30 offers with-in the first several days of being on the market for sale. Homes that were not offering seller credits are now starting to concede 3% (or more) to the buyers closing costs. This could be an additional $5,000 to $$8,000 savings buyer may see due to waiting to purchase after the tax credit.

Moral of the story? I was thinking of several buyers who gave up on home ownership because they didn’t get an offer accepted prior to the $8,000 federal tax credit. They acted as if the world was coming to an end because of an opportunity that was perceived as being one you can’t miss. Just because you think you are missing out on an opportunity doesn’t always mean something better isn't right around the corner. The saying ‘when one door closes, another door opens’ is very applicable in this situation.

So now what? Interest rates are low, some homes are dropping in value, or at least staying stable, and the odds of negotiating a seller credit may be even greater. If you want to own your own home, this seems to be an even better time to buy then when the government was paying people $8,000! So take action now and be thankful you missed the tax credit. Opportunity may be knocking again and the door may be even bigger this time. So call and get re-approved for an FHA .5% down payment loan (not 3.5%) or our 100% financing purchase program. Call Brad Yzermans (951) 215-6119.

Another Article you may be interested in reading: What is the Biggest Benefit or Reason for Buying Home?

Military Home Buyer Tax Credit Extension + VA Home Loans is a Great Combination

Sat, 25 Sep 2010 00:58:41 -0700

Few people in California realize that members of the Military's Armed Forces, Foreign Service, and Intelligence community are granted an extension through April 30, 2011 to qualify for the $8,000 first time home buyer tax credit as well as the $6,500 tax credit for repeat or ‘move up' buyers tax credit. Qualified service members must fully execute a binding purchase contract in California's Inland Empire of Riverside and San Bernardino counties, San Diego, Orange County, or Los Angeles County, by April 30, 2011, and have until June 30, 2010 to close their transaction.

I'll admit it, I don't always agree with our current administrations policies, but President Obama did the right thing by extending this tax credit for our countries military personnel who served overseas and were unable to take advantage of this great opportunity. I'd actually like to see it extended even further for our military if possible.

Who Qualifies?

Qualified Service Members are members of the uniformed services of the U.S. Military, a member of the Foreign Service, or an employee of the intelligence community. Qualified service members are those who were on orders for extended duty outside the United States for at least 90 days during period of December 31, 2008 and May 1, 2010. For married service members to qualify, their 90 day service must have taken place in 2009.

There is also an exemption for those who were forced to return to the U.S. for medical reasons before completing their assignment of at least 90 days.

The government has also waived the three year recapture feature for qualified service members if they have to sell their home due to receiving government orders for extended duty service.

Combine this with a California no down payment 100% VA home loan that requires no monthly mortgage insurance, our military and armed forces personnel have a great opportunity to own their own home with almost nothing out of pocket if negotiated correctly.

Take Advantage Now: If you would like to learn the details in qualifying for either the $8,000 first time or the $6,500 repeat or ‘move up' home buyer tax credit, or even determine how much of a loan you can qualify using the VA loan benefit, just call me (951) 215-6119, email me brad(at)homeloanartist.com, or visit my primary website Inland Empire Mortgage, Rates & Real Estate. I service mainly the Temecula, Murrieta, Menifee, Lake Elsinore, Corona, Riverside, Canyon Lake, Fallbrook and North County areas but can help buyers all over Southern California secure their home financing.

Cute Single Story Cul-De-Sac Home for sale in Winchester/French Valley

Wed, 15 Sep 2010 22:45:58 -0700

35387 Azalea Circle
Winchester, CA 92596
Cute Single Story Cul-de-sac Home

Jim Bilicki

DRE #00577785

Mobile:

951-443-6015

Price	:	$225,000
Bedrooms	:	4
Bathrooms	:	2
Square Foot	:	2,128
Lot Size	:	11,326
Community	:	French Valley
County	:	Riverside
Property Type	:	Detached
Year Built	:	2004
MLS Number	:	T10097522

click for more information and pictures

Property Description

Charming turnkey single story home on quiet and safe cul-de-sac.This spacious home has 3 large bedrooms + office (or additional 4th bedroom)and 2 full baths with dual sinks. Double door entry into master suite with walk-in closet, vaulted ceilings in formal living room and in separate dining room area, ceiling fans throughout, designer paint, wood blinds, large eat in kitchen area, lots of counter and storage space in kitchen, and very spacious family room with elegant fireplace. Covered patio overlooks the huge mature landscaped backyard with lots of space for a pool and large play area. This home is close to top rated schools, parks, walking trails, shopping and dining. This is a wonderful family home in a great neighborhood! This home eligible for 100% financing (no down payment) Call Brad @ (951) 215-6119 for financing info!

Features List

Ceiling Fans	Patio Cover	Fireplace
Large Backyard	Cul-de-sac	Walk-in Closet

Equal Housing Opportunity.

Equity Real Estate Services : 51 Clancy Lane - Rancho Mirage CA 92270 : 951-443-6015

FHA Mortgage Loan Insurance Changes for Homebuyers in California's Inland Empire, Temecula, Corona, Riverside, Murrieta & Menifee

Fri, 13 Aug 2010 00:40:20 -0700

HUD recently announced that starting October 4th (recently delayed), FHA is reducing the amount to be collected for their Up Front Mortgage Insurance Premium (UFMIP). However, FHA will also increase how much they collect on their Annual Mortgage Insurance Premium (MIP - collected monthly) for California's Inland Empire (Riverside & San Bernardino County) home buyers.

Confused? FHA's insurance is a ‘split' premium type of mortgage insurance designed to protect the lender from loss. FHA collects some up front (UFMIP) and some on a monthly (MIP) basis. Don't confuse this with your fire/hazard type homeowners insurance which is completely different than FHA's mortgage insurance.

So what's the big deal? How does this impact you? Why would you care? To figure this out, we need to compare the proposed changes to the current guidelines. Below is a table to help compare. This is based on a $200,000 loan amount with 3.5% down payment @ 5%. Payments below do not include monthly impounded property taxes or fire/hazard insurance.....not sure what those are? Then call me.

FHA/HUD IS REDUCING BUYING POWER & MAKING HOME OWNERSHIP MORE EXPENSIVE: As you can see, this change will reduce the buying power for homebuyers in Riverside, Corona, Temecula, Murrieta, Sun City, Menifee, Lake Elsinore, Canyon Lake, and others in Riverside and San Bernardino county's Inland Empire. The buying power drops because the monthly payments increase and raises the buyers DTI (debt-to-income) ratio, therefore reducing how large of a loan they can qualify for. This change will require buyers to make more money to qualify for the same home loan if buying after October 4th, 2010. Frank & Brian from famed Think Big Work Small coroborate this and are calling this an actual Homebuyer Tax....watch this video.

WHAT IF INTEREST RATES INCREASE? If you are waiting to buy to see if home prices drop, the odds are that interest rates will increase over time......they can't stay artificially low forever....can they? A 1% increase in the interest rate would add an additional $127 more per month to the scenario above and reduce a persons buying power even further! Can you imagine waiting until 2011 to purchase a home and rates go up just 1%? You would end up paying anywhere from $170 more per month for the exact same loan after october 4th or up to $279 more when HUD/FHA eventually increases the MIP to 1.5%.

So add this to your multiple reasons to buy a home now rather then waiting. The cost of waiting is just too risky if you are considering buying a home soon. If that's not enough reason to buy (or refinance) then read this post and watch this video What is The Biggest Benefit or Reason for Buying Home.

Thank goodness that even with these changes, the cost of owning a home is still often less then renting. If you would like to find out how qualify for a home loan, learn what your other loan and down payment options are (100% financing still available), or just want to find out what you need to do to prepare to purchase a home, call me at (951) 215-6119 or email me at brad(at)HomeLoanArtist.com. I'm here to help. FHA, VA, USDA Mortgage Expert and Home Loan Artist

Temecula Condo Home on Cape Cod Lane in Lake Harveston For Sale

Thu, 12 Aug 2010 23:55:08 -0700

Beautiful Condo in Temecula at 40051 Cape Cod Lane for sale that would make for a great home. Located in the highly desired Lake Harveston Community.

40051 Cape Cod Lane
Temecula, CA 92591
Temecula Condo in Lake Harveston Community

Julia R. WIlliams

DRE #00958586

Mobile:

951-526-6665

Price	:	$199,900
Bedrooms	:	3
Bathrooms	:	2.5
Square Foot	:	1,670
Community	:	Lake Harveston
County	:	Riverside
Property Type	:	Condo or Townhouse
Year Built	:	2007
MLS Number	:	T10078562

click for more information and pictures

Property Description

Short Sale waiting for your offer. Buy into the "American Dream" with style in this 3-bedroom/2.5-bath Cape Cod condo while enjoying all the amenities of Harveston Lake. This private corner unit has an airy floor plan showcasing a fashionable living room with custom paint and a gas fireplace for ambiance or cool breezy nights. The master suite has a large walk in closet, cook-friendly kitchen with stainless steel dishwasher, gas range, microwave and rich granite countertops. Enjoy Temecula's glorious weather floating in the paddle boats, trying your luck at fishing, or simply basking in the sun around the magnificent community pool. $199,900.00. Please call Julia Williams for more information.

Go here to be pre-approved for an FHA loan with only 1/2% Down Payment !

Features List

Pool

Spa

Club House

Equal Housing Opportunity.

EXIT TWIN ADVANTAGE REALTY : 39755 Murrieta Hot Springs Road - Murrieta CA 92563 : 951-526-6665

Sweet Lake Harveston Home for Sale in Temecula, CA

Thu, 15 Jul 2010 17:32:28 -0700

40101 Stowe Road
Temecula, CA 92591
Real Charmer in Lake Style Living Community

Marci Johnsen

DRE #01261109

Office:	951-491-7800
Mobile:	951-551-7022

Price	:	$289,000
Bedrooms	:	4
Bathrooms	:	2.5
Square Foot	:	2,249
Lot Size	:	3,484
Community	:	Lake Harveston
County	:	Riverside
Property Type	:	Detached
Year Built	:	2003

click for more information and pictures

Property Description

STANDARD SALE!!! 4BD PLUS DEN/OFFICE, BEAUTIFUL HARVESTON COMMUNITY. HOME WITH ALL THE UPGRADES, ENJOY THE LAKE AND PARK AT END OF STREET. HOME HAS MANY UPGRADES INLCUDING DISTRESSED WOOD PLANK FLOORING, UPGRADED CARPET, 24" TILE, GRANITE, STAINLESS STEEL APPLIANCES, MAPLE CABINETRY IN KITCHEN W/BREAKFAST BAR AND BREAKFAST NOOK, COZY FAMILY ROOM FIREPLACE AND SURROUND SOUND, 2" CUSTOM WOOD BLINDS THROUGHOUT, TWO CAR ATTACHED GARAGE W/EPOXY FLOORING, ROLL UP DOOR AND AUTOMATIC OPENER. LIVING ROOM/DINING ROOM,MASTER BATHROOM WITH DUAL SINKS, TUMBLED STONE COUNTER TOPS, GARDEN TUB, SEPERATE SHOWER, WALK IN CLOSET, MOVE-IN READY AND PLENTY OF ROOM FOR EVERYONE. ENJOY HARVESTON LAKE, POOL, SPA, PARKS AND WALKING TRAILS!

FINANCING: This home is eligible for an FHA 1/2% (.5%) down payment assistance program. Contact Brad Yzermans for more details (951) 215-6119.

Go here to be pre-approved for an FHA loan with only 1/2% Down Payment !

Features List

Distressed Flooring	Granite Countertops	Surround Sound
Upgraded Carpet	Stainless Appliances	Epoxy Garage Floor
24" Tile	Maple Cabinets	Stone Countertops
Community Pool Spa	Kiddie Waterpark	Near Sports Park

Equal Housing Opportunity.

HomeSmart Real Estate : 41607 Margarita Road #102 - Temecula CA 92591 : 951-491-7800

The Biggest Benefit to Owning a Home (in my opinion)

Tue, 29 Jun 2010 01:19:52 -0700

If you are thinking of buying a home somewhere in Southern California's Inland Empire, you have probably read about the obvious benefits of being a home owner before (see immediate list below). I'd like you to consider the ‘other', often unspoken benefit of owning your own home. I'm suggesting that a home can actually ‘build' a person. (make sure you watch the #1 song Miranda Lambert video to understand this).

Here are the Four Most Common Reasons or Benefits to Home Ownership:

Tax Deductions. For both state and federal taxes, the interest paid on the mortgage is usually tax deductible....it's a tax shelter. You can also deduct the property taxes you pay. Both help reduce your taxable income (keep more of your hard earned money) and enables you to receive a larger refund at tax time.
Home Appreciation. Homes have lost 50+% of the appreciation since the 2006 bubble high's. History shows home values increase about 3% a year when averaged out over time. Between paying the loan balance down and the appreciation in value, you are creating a tangible retirement fund.....in the form of equity. Equity is the difference of what you owe on the home and what it's value is. This equity can be leveraged to purchase investment properties in the future and increase your overall net worth and create additional monthly cash flow from renting out properties.
Payment Stability. Renters have no idea how much their rent will increase from year to year. A homeowner with a 30 year fixed has peace of mind knowing that their payment won't change for 30 years. This is a way to help protect yourself from the impact of inflation and makes your dollar go further.
Freedom or Pride of Ownership. You get to decorate and design your home to match your taste. No loud neighbors to deal with....or play your own music louder than you can in an apartment or condo. You also have a backyard for your pets, a place for your kids to play, or a place to plant a garden.

For most people, the payment on a home mortgage is often the same or sometimes less then what they pay in rent!! Home affordability in California is at an all time high.

In my opinion, the most important reason for owning a home is best said in this song by Miranda Lambert, "The House That Built Me". It talks about the memories a home brought to this singer as a child. I often see people cry when they sell their home...even when moving and buying a nicer home, so I know that owning a home plays a significant role in a persons life.

I was fortunate to have grown up in the same house (in MN) from the time I was 3 to when I moved out on my own after college. Looking back at the photo's phto's of my chldhod, growing up with my sister, I realized most of them involve our home and neighborhood. In fact, I'm still friends with many of the neighborhood kids I grew up with playing baseball, hockey, and basketball in the street......as well as kick the can into the late evenings. Many experts claim that a stable home is required for a child to blossom into a confident, secure, respectful, and loving adult. This refers to the actual family life as well as the physical home. If you are unsure about this, just ask a person who's dad grew up in the army and moved multiple times how much that impacted their adolescence.

I am so thankful for the stability my parents brought to my childhood (thanks Mom & Dad). A home can act as a refuge from the negative forces of this world, helps shape a childs life, and helps them succeed later in life.

Life is short, we only grow up once, and owning your own has all kinds of financial benefits, but the memories that an actual home can provide is worth more than all the money in the world. I believe we owe it to our kids to provide this kind of stability in their lives....and create memories that will last a lifetime.

If you would like your kids to experience stability in their life by owning your own home and create lasting memories, I encourange you to find out what it takes to qualify for a home loan. If you need to improve your credit score, then call me for some direction or advice. I'm here to help. Brad Yzermans (951-215-6119) or visit www.HomeLoanArtist.com.

P.S. And don't worry, you don't need a down payment!

Serving the communities of Temecula, Murrieta, Menifee, Wildomar, Canyon Lake, Lake Elsinore, Hemet, Riverside, Moreno Valley, and Corona.....and the entire Inland Empire region.

Tags: Appreciation, California, Home Equity, home loan, Home Ownership

DEED-IN-LIEU FORECLOSURE and Short Sale UPDATES Fannie Mae

Mon, 17 May 2010 18:07:09 -0700

Via George Souto (McCue Mortgage) FHA, CHFA, VA Mortgages CT.:

Fannie Mae has announced a new updated. This time they are revising the waiting period for Deed-in-Lieu of foreclosure and Short Sale on conventional conforming loans effective with applications dated on or after July 1, 2010. Fannie Mae's Automated Underwriting System (DU) will be updated to version 8.1 and implemented during the weekend of June 19, 2010 to include these changes. No changes will be made to bankruptcies or strict foreclosure, so the present guidelines will continue to apply.

Below is a breakdown and time periods for the new changes.

******************************************************************************************************************

Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Short Sale Legal Issues Affecting Real Estate Agents Part #4

Sat, 08 May 2010 13:59:40 -0700

Via Drew Sygit (The Lending Edge) Real Estate Financing Expert (The Lending Edge):

Short Sale Legal Issues Affecting Real Estate Agents Part #4

The previous posts in this Short Sale Legal Issues Affecting Real Estate Agents series were on 04/23/10, 04/28/10 & 4/30/10.

MORTGAGE, EXPERT, MICHIGAN, BIRMINGHAM, BLOOMFIELD, DETROIT, ROCHESTER, ROYAL OAK, TROY

This series of posts is meant to assist real estate agents in recognizing:

Legal & Tax Issues their clients are exposed to through a short sale.

The legal liabilities agents may expose themselves to when representing short sale sellers.

Disclaimer: This series is not intended to advocate the hiring of attorneys and CPA's for short sales, but rather that agents should fully research and be aware of the potential legal liabilities and tax issues for themselves and their clients.

Most agents truly care about their clients and really go out of their way to help those clients - whether they're buying or selling.   This is especially true in short sale transactions where sellers are dealing with financial hardships and the stress of maybe losing their homes. I've personally witnessed transactions where an agent sacrificed their time & commissions in the best interests of their clients. I've done the same several times.

I've also witnessed transactions though, where eager agents with good intentions, unknowingly put their clients in terrible situations. Their ignorance cost their clients or exposed them to potential future liability and/or tax issues. Often the agent's ignorance also left them selves exposed to liability issues.

Many agents don't realize the legal quicksand that short sales present and how the "win" of a closed sale can actually be a loss.

Common Short Sale Activities Exposing Agents to Legal Issues & Lawsuits

Here are some common activities that occur during a short sale transaction where real estate agents may be leaving themselves vulnerable to a lawsuit without being aware of it:

1. An agent labeling themselves a "short sale expert".

Holding yourself out to the public as an expert allows that claim to be used against you in court.

2. Representing that a short sale is better than a loan modification, foreclosure or deed-in-lieu.

An agent is not licensed as a legal or tax expert. An agent should not give advice on these issues.

3. Discussing a listing price or price adjustments with a seller's lender.

This may be a disservice to the seller and a violation of fiduciary responsibilities to a seller.

4. Gathering and turning in a seller's information for short sale approval.

Much of what needs to be gathered is confidential information. Agents doing so are likely to be subjecting themselves to the requirements of the Gramm-Leach Bliley Act. If an agent loses this information or it is stolen from their possession, the repercussions are not pretty. Many agents may also leave this info openly on their desks at work - GLB Act requires it be kept under lock & key.

5. Telling a seller what to turn in to their lender for their short sale approval package.

Going over a list from a lender is one thing. Telling a seller what to include or omit to manipulate the system is a slippery legal slope.

6. Negotiating with a seller's lender to hold off on foreclosure activities.

This is a very dicey issue as it's usually necessary, but could be construed as practicing law.

7. Encouraging a seller's lender to accept a short sales price negotiated between buyer and seller.

An agent's license typically only allows them to negotiate between buyers and sellers, not with lenders. That's a legal matter.

8. Negotiating with the lender of a seller on the amount of agent sales commission.

Under an agent's fiduciary responsibilities they're actually required to close the transaction even if the lender cuts their commission to zero. FNMA no longer allows this practice.

9. Handling the negotiations with a lender to accept less than they're owed.

A required task to put a deal together, but again it exceeds the scope of a typical real estate license.

10. Dealing with a lender on seller-paid contributions to a buyer.

Again, this exceeds the scope of a typical real estate license.

11. Representing to a seller that an agent can/will handle 1099 or deficiency issues with their lender.

An agent is not licensed as a legal or tax expert. An agent should not give advice on these issues.

12. Discussing the waiver of deficiency judgments with a lender.

Definitely a legal issue that agents are not licensed for.

13. Negotiating with a lender to not send the seller a 1099.

Another legal issue agents are not licensed to handle.

14. Working with a real estate investor to create a profit by low-bidding a short sale listing while remarketing it for a higher price without full disclosure to the lender.

This is a very hot topic and banks are vigorously pursuing fraud cases against agents. Anna McElaney, a Connecticut agent, recently pleaded guilty in a federal case on such a transaction. Even if the investor actually purchases a property before flipping it for a higher price, the agent involved may be charged if the lender can demonstrate the agent withheld information about the 2^nd transaction for the higher price.

15. Any action an agent takes that is not 100% in the best interest of their client.

Agents have to be very careful that they do not pursue a commission at the expense of their seller client's best interests. This can be a very difficult temptation to control short sale transactions because they require so much time and energy. An agent deserves to be paid something, but often gets nothing.

Now some of these issues may be "splitting hairs" but hopefully this list causes agents to think a bit more about their actions and the repercussions. It's up to each individual agent, with their broker's approval, to determine the liability issues they knowingly want to expose themselves to.

Stay tuned for the next post in this series...

NOTE: if you're the impatient type and don't want to wait to read the series as it's published, I'll send you the complete whitepaper for the series when you do ALL of the following:

Post a constructive comment on one of the posts in the series

Reblog one of the posts in the series

Make me an associate of yours on ActiveRain (go here: http://activerain.com/dsygit)

Join my Fanpage @ www.facebook.com/TheLendingEdge and send me a message there requesting the whitepaper with your email address.

If you're a Michigan agent, I'd also very much appreciate you joining a new AR group specifically for Michigan real estate professionals willing to share marketing and social media ideas with each other.

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Thanks for reading and I hope you spread the word.

_______________________________________________________________

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Will you Survive the Coming Storm??

Sat, 13 Mar 2010 12:03:47 -0800

Via Holly Lynch (Keller Williams Greenville Central):

For over a year now my office has been preparing for the coming storm. Some of you are already beginning to see the rip currents but still havent' experienced the tsunami. DOOM GLOOM...Nope..not if you're prepared.

What is the storm? The sarcastic side of me raises my eyebrow that you'd believe the media for one moment that the worst is over! Oh, but you say..I'm already doing great this year. Yup you will. So what's ahead. Now I'm no lender, market analyst or any such learn-ed creature. I'll tell you what I've been told and see if you agree that we better get the lifeboats and jackets ready and make sure there are flares.

THE STORM

1. Rip currents- Jan 1 next year will be the first of the "baby boomers" retiring and beginning to draw their promised "pension" of SSI/Medicaid/Medicare, a system which is already bankrupt and borrowing money from us and our children.

2. THE BIG WAVE- The 5 Year ARMS adjust next year. If you think last year was rough, geez peeps, that was just the 2-3 year arms. A paltry amount considering the nearly triple amount of jumbos still to go through the adjustment and/or forclosures. Speaking of:

3. Shadow inventory- Let me explain. The banks got their lovely bailout funds, didn't lend them, forclosed on homes and have NOT released a goodly portion of them back on the markets. WHY NOT? you ask. Well that would further devalue our markets right? And in a time of economic struggle and joblessness the people have to believe they have something of value still. Besides let's get real. The banks are holding them cuz it pads their portfolios so more "investors" will invest in their company. Makes em look like Brad Pitt in Fight Club if ya know what I mean.

Doom Gloom Doom Gloom.....nope... a smaller nope, but nope.

So what do we have to do to weather the storm

1. Your lifeboat and My personal ARCH NEMESIS-Embrace Tech. Ugg. See I have a generic post without frills, just words on a page. I think the pics and fun fonts are for the magazines. I'm here to learn. And I'm not old. I just have priorities and my family comes before learning IDX feeds and hyperlinks. Can anyone explain Wolfnet..never mind. Get hyper social network crazy. Yep got that one down. But I will overcome and my Tech Lifeboat will be readied whether I like it or not.

2. Prepare your Flares-Your sellers. If they cannot sell at the market value now, what happens when they are competing with 7-10 million MORE REO properties to be released like a feature film, at a later date! Christmas Eve perhaps. Happy Ho Ho. Are they really going to want to compete with those and lose every bit of equity or bring countless dollars to closing. Heck they're doing that now, what do think will happen next year?

3. Get your emergency kit ready- Really fellow Realtors. Save your money. Gone are the days of getting a great close, going out and spending on vacation, shopping or that new toy. The new toy needs to be named "no debt", a paid for home, 6 months reserves in the bank or more. Save Save. We're done with the culture of spend. Our government is doing plenty of that 4 us! Heck they think they're at the KMART blue light special with our tax dollars and the Martha Stewart linens are flying off the shelves. RUN Blue Lighters! SAVE YOUR MONEY! Do what your grama did..get a piggy bank.

Attention Passengers..following these key steps could save your a... I mean career. Get ready folks. The next tsunami is coming. Will you ride the wave in your lifeboat or be stupid and do as you've always done and coasted along just like the daredevil surfer taking on the big one. Problem is..he always ends up dead. Will you be a Realtor in the next coming wave?

OneWest Bank Releases Their First Year Profit Statement $1.6 Billion- You Won't Believe This One!

Sat, 20 Feb 2010 11:33:21 -0800

Via Robert G Hertzog (Summit Home Consultants):

OneWest Bank Releases Their First Year Profit Statement $1.6 Billion- You Won't Believe This One!

Kudos to Scott Reckard with the LA Times. He wrote an article today that is sure to open some eyes. The article, titled "OneWest Bank Profit: $1.6 Billion" does an excellent job of pointing out some very interesting observations.

According to the article, OneWest paid the FDIC $1.55 Billion for the failed IndyMac Bank, and turned a profit of $1.57 Billion in it's first year. The article specifically addresses the shared-loss agreement that was also put in place by the FDIC, which is expected to cost the FDIC nearly $11 Billion.

The reason I'm posting this article is that it dovetails perfectly into my blog titled "Is The FDIC Killing OneWest IndyMac Short Sales" in September/2009. The blog, which ended up being the basis of the recent video produced by Think Big Work Small (without my knowledge or consent, by the way) deals with a transaction I handled for one of my clients with OneWest Bank. Rather than go into all of the details of the blog you can read it here. But basically, it centered on shared-loss deals, and how they are creating a disadvantage for consumers trying to accomplish loan modifications or short sales.

The FDIC was so upset with the video that they decided to issue an official press release on Friday, February 12th. The LA Times article specifically states that the FDIC refused to comment today on the profit statement released by OneWest today.

So let me get this straight... The FDIC issues an official press release on a YouTube video, but doesn't want to talk to anyone about the profits OneWest just reported today, and the possible effects of the shared loss agreement they have in place with them? Interesting. Anyway, enjoy the article. This story is beginning to "grow legs", as they say. With 93 other loss share agreements in place, according to a recent Business Journal article, I'm sure this is something we will all hear more about in the very near future.

Oops, I spoke to soon! While writing this article, I just found out that the FDIC just issued ANOTHER press release, this time announcing that they just sold La Jolla Bank in La Jolla, CA to, guess who? You got it, OneWest Bank! And guess what? That's right, they signed yet another Loss Share Agreement with them as well. Well, that makes a total of 95 loss share agreements, and counting!

Folks, it's time to stop this madness. The LA Times article shows what this program is costing the American Taxpayer. Some, like the FDIC (and their banker buddies) will tell us time and time again that the FDIC receives no taxpayer dollars, and is funded wholly by the FDIC premiums charged to the banks. Think about it... When banks have to pay more for increased premiums, where do you think they get the money? Quite simply, they raise their rates to YOU, the consumer, to cover these additional expenses. And, when they finally run out of money, they have a nice little $500 Billion "Credit Card" they can use at the U.S. Treasury. Where do you think this money comes from? Correct... YOU, the taxpayer.

So do your part and help spread the word. It's time to stop asking questions, and start demanding answers from our fearless leaders in Washington. Don't just read this and get mad. Read this and share it with all you know.

Bob Hertzog

www.foreclosureuturn.com

Is The FDIC Killing Indymac OneWest Bank Short Sales?

Wed, 17 Feb 2010 14:07:05 -0800

Via Robert G Hertzog (Summit Home Consultants):

Is The FDIC Killing Indymac OneWest Bank Short Sales?

As some of you may already know, I specialize in helping homeowners avoid foreclosure through the use of short sales. Recently, I dealt with a very interesting case involving Indymac/OneWest Bank, that I felt needed to be brought to the attention of all American taxpayers.

Basically, IndyMac Bank (now OneWest Bank), is holding one of my clients hostage, demanding a $75k promissory note, or they will proceed to foreclosure. For the life of me, I couldn't figure out why they were doing this. The BPO came in at the contract price of $275k, with a net to IndyMac of $241k. What advantage could there possibly be for them to proceed to foreclosure?

Yesterday, I figured it out. You see, IndyMac was taken over by the FDIC and sold to OneWest Bank in March/2009. Guess who the investors are behind OneWest? George Soros, Michael Dell, Steve Mnuchin (former Goldman Sachs executive), and John Paulson (hedge-fund billionaire).

Now, listen to the deal they got from the FDIC....

Basically, they purchased all current residential mortgages at 70% of par value (70% of the outstanding loan amounts). They purchased all current HELOCS at 58% of Par Value!!!

Next, in order to "sweeten the pot", the FDIC stepped in and guaranteed the following: For any residential mortgages where OneWest experiences a loss, the FDIC will step in and cover anywhere from 80%-95% of the loss. The loss is calculated using the ORIGINAL LOAN BALANCE, not the amount that OneWest paid for the loan. Let's use my clients actual situation as an example:

Loan Amount is $478,000, plus 6 months of missed payments, for a grand total of $485,200

OneWest pays $334,600 for the loan

We have an all cash offer of $241,000, net to OneWest.

So, let's do the math, shall we? The net loss, according to the FDIC formula is the ORIGINAL LOAN AMOUNT minus the amount of the offer. In this case, $485,200-$241,000, or $244,200. Next, the FDIC, according to their Loss Share Agreement, writes a check to OneWest for 80% of the so-called "net loss". So, in this case, OneWest gets a check from Uncle Sam for $195,360 (.80 X $244,200).

Add the $195,360 to the sales price of $241,000, and you get a grand total of $436,360. Remember, OneWest paid $334,600 for the loan. So, OneWest puts $101,760 in their pocket, thanks to the FDIC. Folks, that is over $100k of our hard-earned tax dollars!

So, you ask...Why does this program hurt short sales? Because, our brilliant government offers this SAME PROGRAM FOR FORECLOSURES! The only difference is, the government picks up 80% of the tab on all of the extra costs associated with a foreclosure (BPO's, upkeep, utilities/maintenance, legal fees, etc.)

So, If I'm OneWest, why would I want to waste my time negotiating through a Short Sale, when I can make the same amount of money (if not more) by just letting it go to foreclosure? And we wonder why nobody can get a Loan Modification? Why would OneWest approve a loan modification for this guy, when they can foreclose and make over $100k? And, to add injury to insult, they have held this loan for 6 months! Not a bad ROI, huh?

What infuriates me the most is that in my particular case mentioned above, they have the guts to hold my client hostage for a $75k promissory note, after they are already making more than $100k on the sale!!! This is his primary residence, 1st Position loan, and OneWest has NO RECOURSE! Imagine if they could make $100k, then get a deficiency judgement! Talk about making some big bucks!

Can you say "GREED"?

But wait, here's the best part... I sent letters to Senators John McCain and Jon Kyl, with a cc to the CEO of OneWest, explaining the current loss-share agreement, as well as including the FDIC worksheets, with the actual numbers in this case, showing them that OneWest was making a profit of over $100,000 on this deal, thanks to the FDIC. Within 24 hours, I received a response from the PR Firm representing OneWest, telling me that OneWest would dismiss the promissory note requirement, and the short sale was approved. We closed escrow 3 weeks later. My client not only avoided a $75,000 commitment, but also salvaged his credit by short-selling his home, versus handing it back to OneWest via foreclosure.

The scary thing is that over 50 banks have Shared Loss Agreements in place with the FDIC. Some of them include: Bank of America (go figure), CitiMortgage, Wells Fargo, etc.

This entire agreement between the FDIC and OneWest can be found here, on the FDIC website. It's all there, for the world to see! They have it all laid out. All of the formulas, worksheets, etc.

Now, it's up to us to bring it to the attention of our elected officials and the media. Enough is Enough!

Wait, it gets better...The FDIC just announced that they are "considering" borrowing money from the U.S. Treasury in order to replenish it's deposit insurance fund (the same fund being used to pay all of these banks in the Loss Share Agreements). Go Figure! Don't believe me? Click Here to read it.

Update 2/16/10: On a side note, many of you have sent emails, called, and/or commented on the recent video produced by TBWS. The day the video was released, I began receiving emails, calls, etc. from folks, asking me if I had anything to do with the video. While the numbers they quote in the video are the exact numbers in the blog post above, I had absolutely nothing to do with it's creation or production. Apparently, someone sent them the blog, and they produced the video with the information contained therein. While I'm happy that the video was able to get the story out to more people (which was my original intent in writing the blog), I must say that I was disappointed that TBWS made the conscious decision to not give credit to where they got the information, either in the "1st edition" that was released on 2/8/10, or the "revised edition" that came out on 2/16/10, in response to the FDIC Press Release. I commend them for squeezing in an acknowledgement on their 2/9/10 video, after I called Brian and reminded him of where all of their information came from. Despite numerous efforts to contact them, they have now chosen not to respond. To each his own, I suppose. Either way, please know that I had nothing to do with the video, and it was done without my knowledge.

Robert G. Hertzog

Phoenix Real Estate Consultant

www.foreclosureuturn.com

Do you use birth control?

Sat, 23 Jan 2010 11:25:49 -0800

Via Ruth Vogt (LMB#100023827) WR Starkey Mortgage:

Before I explain that question, let me ask you this one: "How long have you been in the business?" Ever have someone ask you that? Here's my answer, and it will really make you think!

I was in the business before we had the Equal Credit Opportunity Act (ECOA). ECOA went into law in 1976, and protects against discrimination based on race, color, religion, national origin, sex or marital status, or age.

So, you ask???

Well, when I was first in this business, if I were taking a loan application from a married couple that were of child bearing age and they wanted her income to be taken into consideration, I would have to document their birth control procedures!!

Yep! That's right! A letter signed by the two of them certifying they did not intend to have children, why, and then explaining their form of birth control would sometimes suffice, but not always! Imagine having to ask THAT question at the face to face loan application (which a face to face was the only kind of loan application we could accept)! Remember, back then maternity leave was not protected by law. Thus, if the wife were to get pregnant, there would be no guarantee that she would get her job back. So job stability could not be established, disallowing the income from being taken into consideration.

And to think today we're all uptight about a new Good Faith Estimate and HUD!

"We've come a long way, baby!" (Do you know what advertisement that line was used in?)

This post is included in the brand new "Financing Friday" group, which we invite you to join.

Views and opinions expressed on this site are not necessarily those of WR Starkey Mortgage.



Ruth Vogt, Branch Manager

   Colorado LMB #LMB100023827

   www.MyLenderOfChoice.com

   rvogt@wrstarkey.com

No More 90 Day Anti-flip Rule for FHA Loans for One Year!

Sat, 16 Jan 2010 15:36:31 -0800

HUD Secretary's Shaun Donovan just announced that home buyers in all of California can now appply for FHA home loans to purchase properties that have been owned for less than 90 days by the seller. This is great news for all of us in Riverside County, Temecula, Murrieta, Menifee, Winchester, Riverside, and Corona.

This policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

"This change in policy is temporary and will have very strict conditons and guidelines to assure that predatory practices are nt allowed," Donovan said. This policy will take effect February 1, 2010, and last for one year.

This is the one of the biggest changes HUD/FHA has made to enable home ownership, especially for first time buyers, since offering FHA loans with only 1/2% Down Payment (99.5% LTV FHA loans - California only).

Until now, people using an FHA loan to finance the purchase of a home could not make an offer on a home that has been owned for less than 90 days by the seller. They had to wait until the 91st day to make an offer.

The only way to finance a home purchase with-in the 90 day period were limited to using Conventional, VA, or private financing. This policy change will bring more competition (more offers) to homes being resold by investors/flippers and allow more buyers using FHA loans to get an offer accepted.

Here are the conditions to this new policy:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

For more details, read HUD's 90 day flip waiver requirements.

If you want to work with a California HUD certified Loan Officer and get approved for your home loan, give me a call at (951) 215-6119, or go to my Temecula Murrieta FHA Mortgage site.

Are Holidays the right time to sell your house? 10 Reasons to List Your Home During The Holidays in California.

Sun, 25 Oct 2009 22:24:25 -0700

Great info...check it out.

Via Shirley Cicero (Coldwell Banker North Metro):

•1. Buyers who look for a home during the holidays tend to be more serious about buying.

•2. Serious buyers have fewer homes to choose from during the holidays, which means less competition and more money for you.

•3. History shows that the amount of listings dramatically increase after January 1^st. With more properties on the market, there is more competition and less demand for your particular home.

•4. Homes show better in the winter months when decorated for the holidays! Buyers are more emotional during the holidays, so a warm and comfortable environment adds to their appeal to buy your home.

•5. Often buyers have more time to look for a home during the holidays than during a regular work week, especially with their additional vacation time near Thanksgiving and Christmas.

•6. Many people want to buy before the end of the year to take additional tax advantages.

•7. Traditionally, January is the month for corporate transferees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market during the holidays to capture that market and close very early in the calendar year.

•8. You have the option to keep your home on the market while simply restricting showings during specific times to accommodate your special family celebrations and holiday events.

•9. You may have the option under contract to close in 2008, but delay possession or negotiate rent-back of your home until early next year.

•10. By selling now, you may have the opportunity to be a non-contingent buyer in the Spring when many more homes are on the market for lower asking prices. This will allow you to sell high, buy low, and increase your contract negotiating power.

10 Commandments Home Buyers Must Follow

Thu, 22 Oct 2009 17:08:33 -0700

great advice.

Via Dr. Chantal Saucier (Keller Williams Realty Acadiana):

These 10 Commandments home buyers must follow may seem like common sense to many. Buyers, however, can sometimes forget with all the excitement surrounding the buying of their new home. In the past couple of weeks, I have heard of two separate buyers who saw their home loan turned down, and their dream shattered, a few days before closing because they had bought furniture for their new home before it actually became their home. Both of them now have beautiful furniture with no home to put them in.

These two buyers were not my clients but it always hurts when I hear of transactions falling apart for reasons that could have been avoided. These 10 commandments (from KWU) are part of the buyer packet I give all my clients when we first meet and I always stress that once they get pre-approved and the process is started, they can't do anything that might affect their credit.

1. Thou shalt not change jobs, become self-employed or quit your job.

2. Thou shalt not buy a car, truck or van (or you may be living in it)!

3. Thou shalt not use credit cards excessively or let your accounts fall behind.

4. Thou shalt not spend money you have set aside for closing.

5. Thou shalt not omit debts or liabilities from your loan application.

6. Thou shalt not buy furniture.

7. Thou shalt not originate any inquiries into your credit.

8. Thou shalt not make large deposits without first checking with your loan officer.

9. Thou shalt not change bank accounts.

10. Thou shalt not co-sign a loan for anyone.

If you are in the process of buying a home, remember that your credit must not change or be affected in any way until you actually sign the paperwork and get possession of your new home. Lenders will not only look into your credit when you first get pre-approved, they will check it again (and sometimes again and again) before they let you sign the mortgage. If you want to buy new furniture for your home or change jobs, just be patient. There will always be time to do it after the closing.

99.5% LTV FHA Financing for All California Home Buyers Available

Sat, 01 Aug 2009 22:35:13 -0700

For a limited time (while funds last) you can purchase a home using an FHA loan with only .5% (one half) down payment. FHA will allow a second mortgage from CHF to cover 3.0% of your down payment by using the Access 2^nd loan down payment assistance loan. The FHA 30 year fixed first loan can go to 96.5% LTV and the 2^nd loan can be 3% of the purchase price....making total loan to value 99.5%. You can even use the 3% for closing cost assistance!

Call Brad Yzermans at (951) 215-6119 to learn more details about this program and get your PriorityBuyer Status Approval. This program is only offered through approved licensed lenders (like me)......and hurry up before the $8,000 tax credit expires November 30, 2009.

QUESTION: What will my payment be on the 2^nd mortgage?

The 2^nd loan is a 15 year fixed @ 8.25%. If you purchase a home for $250,000 your 2^nd loan balance will be $7,500. Payment on a 15 year loan will only be $72.76/month!! Once you file for your $8,000 tax credit, you can pay it off...or go buy furniture...or pay off other high interest revolving credit card debt. If you don't want to do that, go hit grandma or Vinnie the Butcher up for the down payment and see how that goes.

Program Highlights:

NOT Limited to first time home buyers
NO recapture tax/penalty if home is sold later
NO Sales price limits
NO minimum borrower contribution
NO pre-pay penalties
Gift funds are allowed from family members
Seller contributions allowed up to 6%
NO borrower reserves/assets required
NO minimum FICO score required
Income limits are 120% of HUD AMI
2^nd loan (CHF Access) is a 15 year fixed
3% 2^nd loan can be used for down payment or to pay closing costs

Below are the HUD qualifying income restrictions by California County:

(Loan applicants can't make more than this)

($77,400         Riverside & San Bernardino County
$103,320         Orange County
$74,520           Los Angeles County
$89,890           San Diego County
$103,320        Ventura County
$62,640           Kern County
$84,480           Santa Barbara County
$70,800           San Luis Obispo
$54,120           Imperial County

**Please call me if your county is not listed

We are in a very unique time where interest rates are very low and home prices have dropped out of the sky. The affordability factor is in your favor. There are thousands of buyers out there making offers on homes. Don't get stuck paying rent forever. If you wait much longer, you may miss out on the $8,000 tax credit, low interest rates, and the Access 2^nd loan down payment assistance program(funds are limited).

Call Brad @ (951) 215-6119 to talk about sports, to find out if you can qualify.

Brad provides financing for residents all over California including Temecula, Murrieta, Menifee, Riverside, Corona, San Bernardino, San Diego, Orange County, Los Angeles and many other cities.

FHA 100% Financing Now Possible Using Your $8,000 Tax Credit for the Down Payment

Thu, 14 May 2009 08:55:45 -0700

June 1st Tax Credit Down Payment Update:

HUD/FHA just announced a major revision to using the $8,000 tax credit for use as a down paynt on an FHA loan. To summariaze it for you, HUD said a home buyer can still use the $8,000 tax credit to apply towards a down payment, buy down the interest rate, or pay for closing costs pior to closing the loan, but the home buyer still needs to come up with 3.5% of their own money.

If you choose this option, to monetize the tax credit you will need to receive a 2nd lien loan from an FHA approved lender or an FHA approved non-profit agency. After your loan funds, the IRS will advance the tax credit to the lender or non-profit to pay off the loan.

Is this a good idea? Probably not because there will be fees involved. A better solution would be to consider a true 100% home loan that requires no down payment and no monthly mortgage insurance. This will allow you to receive the $8,000 tax credit AND avoid paying out any money to buy a home.

Call me and we will compare loan options to determine which one is your best option. You can reach me at (951) 215-6119 or visit my outside blog Temecula FHA VA Mortgage blog

____________________________________________________________________________________________________________

Isn't it ironic that HUD Secretary Shaun Donovan announced May 11^th at the National Association of Realtor's Mid Year Real Estate Summit that HUD will allow a third party to loan or advance first time home buyers (FTHB) the money they would receive from the $8,000 tax credit after closing to be used for a down payment at closing?

It was only 7 months ago that HUD repealed the guideline allowing seller paid down payment assistance in FHA purchase transactions.Their primary reason for doing this was they said the default rate was higher when the buyer doesn't have any skin in the game. So HUD has justified the down payment being safe for the borrower if it comes from the government (in fomr of a loan) but not if it comes from the seller. Interesting rational.

What this means for first time home buyers? If you purchase a home before Dec. 1, 2009, you can now receive your $8,000 tax credit (read Tax Credits for California Home Buyers) in advance to use for a down payment on an FHA loan. Since FHA loans only require a minimum 3.5% down payment, this means on a $230,000 purchase a FTHB would only need $225 for the down payment. This is assuming you negotiate for the seller to pay your closing costs as well.

In HUD's Mortgagee Letter 2009-15 press release, it outlines the parameters of how this can be done. It basically says that a short term bridge loan or a second lien must be used to advance the funds to the home buyer and only approved entities can offer these secondary bridge loans. They are:

Federal Agencies
State Agencies
Government Agencies
FHA Approved Non-Profits
FHA Approved Lenders

Here are a few other highlights from HUD's recent Mortgagee Letter 2009-15.

Borrower cannot get any cash back - if they need $7,000, they can only get $7,000.
Government agencies and non-profits can do second liens against the house for the down payment.
The payments on that second lien need to be counted into qualifying DTI ratios.
FHA approved mortgagees can do a "bridge loan" against the tax credit.
If payments on the tax credit are deferred, the deferment must be for a minimum of 36 months in order for the payment to not be included in the qualifying ratios.

If you do not qualify for the first time home buyer tax credit or don't want to borrow to get the $8,000 advanced to you, I can get you approved for a USDA 100% no down payment home loan with no mortgage insurance......and you still get the $8,000 tax credit. Plus, the monthly payments will be lower than an FHA home loan. Read 100% Financing w/ No Mortgage Insurance to learn more.

If you don't have the full 3.5% down payment required by FHA but feel you can manage a monthly payment between $1,400 to $2,000/month (this includes all taxes and insurance) then call me at 951-332-7864 to discuss how we can make home ownership a reality for you. I do not charge for pre-approvals, have no application fees, and will send you a free credit report to those who inquire.

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About the Author: Brad Yzermans is an experienced licensed Loan Officer & Mortgage Planner providing FHA, USDA, VA, and Conventional home financing to purchase or refinance homes all over Southern California, Riverside & San Bernardino Counties, Temecula, Murrieta, Menifee, French Valley, Winchester, Wildomar, Lake Elsinore, Sun City, Hemet, Corona, Moreno Valley, Riverside, and the entire Inland Empire.

New FHA Loan maximum Loan Limits for Riverside, San Bernardino, San Diego, Orange & Los Angeles County

Sun, 22 Mar 2009 18:22:20 -0700

HUD announced the 2009 FHA maximum home mortgage loan limits for Riverside, San Bernardino, San Diego, Orange, and LA Counties. The increase, back up to the temporary 2008 loan limits, was a result of the American Recovery and Reinvestment Act of 2009 (ARRA) which was signed into law on February 17, 2009. Lenders are now accepting the higher loan limits and ready to give money away!

What this means for you is HUD/FHA will insure a larger loan amount with as little as a 3.5% down payment and very competitive interest rates.

                                                Single Unit      Two Unit      Three Unit       Four Unit
Riverside & San Bernardino      $500,000        $640,000    $773,700       $961,550
San Diego                              $546,250       $699,300   $845,300      $1,050,500
Orange County                       $729,750       $934,200     $1,129,250     $1,403,400
Los Angeles                             $729,750        $934,200    $1,129,250     $1,403,400

I wanted to report this correctly because many people and/or websites, out of confusion, seem to be reporting the limits incorrectly at a lower amount.

If you would like to inquire about qualifying for an FHA loan please call me @ 951-215-6119 or visit the Temecula Murrieta FHA VA Mortgage blog

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About the Author: Brad Yzermans is an experienced licensed Loan Officer & Mortgage Planner with Watermark Capital providing FHA, USDA, VA, and Conventional home financing to purchase or refinance homes in Riverside & San Bernardino Counties, Temecula, Murrieta, Menifee, French Valley, Winchester, Wildomar, Lake Elsinore, Sun City, Hemet, Corona, Moreno Valley, Riverside, and the entire Inland Empire.

Can You Afford to Wait & Purchase or Refinance a Home?

Mon, 16 Mar 2009 15:01:17 -0700

Without going into a 10 page detailed explanation of what drives mortgage rates upward let me just say that inflation is the number one influencer of mortgage rates to rise. Can we agree on that? We also need to understand that the government is already artificially reducing mortgage interest rates as a result of buying Mortgage Backed Securities (MBS) from Fannie Mae and Freddie Mac.

What is inflation? A rise in consumer prices or loss of value in the dollar.

What are two primary causes inflation?

1. When a Govt. prints an excess of money causing prices to rapidly rise in order to keep up wit the currency supply.

2. A rise in production costs (Ex. oil). This can be caused by natural or manipulated events. An increase in taxes will rise prices, which are then passed on to the consumer. Wars often lead to inflation as well.

I talk to people everyday who say they want to buy a home but want to wait until the price drops another 5-10%. While sounding like a wise statement, here is the problem with that choice.

Lets say a home is listed for $200,000. Interest rates are at 5.25%. With 20% down payment, that makes your monthly payment to be $853/month. Lets say the home price actually does drop 10% to $180,000. By the time the home drops that much in price, I am willing to bet the odds that the odds of mortgage rates going is significantly higher. Probably a 60-70% chance. Why? Because of rapid inflation and reduced future demand for MBS's.

A home sold at $180,000 with 20% down payment at an interest rate of 6.5% comes to $910/month.

Buying the home now @ $200,000 @ 5.25% (March of 2009) will result in you paying $158,069 in interest over the life of the loan.

Waiting for the home to drop to $180,000 @ 6.5% will result in you paying $183,664 in interest! (and $53/more per month)

In this example it is clear that waiting to buy a home that dropped 10% in price will likely cause you to pay more than $25,000 for the home due to interest rates on the rise. The numbers are even greater on larger loan amounts.

So the magic question is, will interest rates rise? Yes, sooner or later they will. They have to. When the government stops or reduces their purchasing of MBS's watch out! This, added with inflation will kick in and put even more upward pressure on interest rates.

Placing your hope in the government for anything (keeping interest rates low) is probably not a great strategy to rest your family's home on.

Do yourself a favor and make the safer and wiser decision for your family. Purchase or refinance your home now while you can.

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Brad Yzermans is an experienced licensed Loan Officer & Mortgage Planner with Watermark Capital providing FHA, USDA, VA, and Conventional home financing to purchase or refinance homes in Riverside & San Bernardino Counties, Temecula, Murrieta, Menifee, French Valley, Winchester, Wildomar, Lake Elsinore, Sun City, Hemet, Corona, Moreno Valley, Riverside, and the enitre Inland Empire.

$8,000 Tax Credit for my First Time Home Buyers in California!

Tue, 17 Feb 2009 14:18:48 -0800

Well, it's done.....the govt. sweetend the incentive to purchase a home in 2009 for first time homebuyers........bummer for those who bought in 2008 and have to repay their $7,500 tax credit.....which really made it an interest free loan, right?

Let me clarify what a tax credit actualy is....most people seem to think it is a deduction where your taxable income will be reduced by $8,000......it isn't. It is a dollar for dollar rebate.

For example: If you usually end up paying $500/year in taxes at end of the year and you bought a home in 2009, you would get a check from the govt. for $7,500 after filing taxes. If you usually overpay your taxes and get a tax return of $500, the govt would cut you a check for $8,500.

Here are the details on the new revised 2009 tax credit.

1. Increased from $7,500 to $8,000
2. Non-repayable
3. First time homebuyers..only owner occupied
4. Good from Jan. 1, 2009 through Dec. 1,2009
5. Recapture Period: if sell home with-in 3 years entire credit is recoverd from sale of home.
6. Loan limits based on increased FHA and GSE limits
7. Income limits $75,000 for individual, $150,000 for a couple

If you buy a home in 2009 and don't want to wait until you file taxes next year to receive your $8,000, call or email me and I will explain how to receive the $8,000 now!

Make sure you discuss this with your tax advisor to assist with this. If you do no thave a trusted tax advisor, I can refer one to you.

Fannie Mae and Investors are Friends Again....Can Now Finance Up To 10 Homes Again

Tue, 10 Feb 2009 12:07:46 -0800

Good news for all of you current and future investors! Friday, Fannie Mae rolled-back one of its least popular mortgage guidelines updates of the last 12 months.

Effective March 1, 2009, real estate investors can once again own and finance up to 10 individual properties. The restriction reversal does come with new minimum requirements, however.

Homeowners buying a 5th, 6th, 7th, 8th, 9th or 10th home must meet the following standards, as set forth by Fannie Mae:

1. 720 credit score minimum
2. 25% downpayment for a 1-unit (30% for a 2-4 unit)
3. No mortgage delinquencies in the last 12 months
4. 6 months of reserves for each investment property (ouch)

In other words, Fannie Mae is re-opening the lending spigot for real estate investors with good credit, a sizeable downpayment, and ample reserves.

According to Fannie Mae, the change rationale is that experienced investors can "play a key role in the housing recovery". Until now, foreclosure auctions have gone at less than full speed because investors unable to pay cash have been halted by the existing 4-property Fannie Mae limit. it's about time the GSE's wisended up on this issue.

Going forward, expect a more expedient foreclosure liquidation nationwide which should, in turn, provide further support for the housing market.

And lastly, not to be forgotten, homeowners with more than 4 properties can finally participate in the ongoing conforming mortgage Refi Boom. Until now, they've been stymied by the 4-property restriction, too.

If you are interested in buying an investment property or would like to see if refinancing one of your rental properties is viable, give me a call.

Brad Yzermans - Murrieta, Temecula, & Menifee FHA-USDA Mortgage Loan Officer's Blog

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