Home Ownership Becoming More Appealing Than Renting

Home Ownership is finally becoming more affordable than renting.

Rent versus own– that is the question…

First time home buyers

Declining home prices are helping to close the gap between the costs of renting versus the cost of owning a home, making home ownership more appealing and affordable in many metropolitan markets.

·     Historically, after-tax mortgage payments have averaged 26 percent more than rent payments, according to Greet Street Advisers.  At the peak of the current real estate cycle, mortgage payments reached as high as 66 percent more than rent payments.  However, by the end of 2008, mortgage payments averaged just 24 percent more than rent payments, the narrowest gap since 2001.

·      In Los Angeles, mortgage payments averaged 60 percent more than rent payments between 1990 and 2008, but have since fallen to only 30 percent more than rent payments.

·      Some economists predict mortgage rates could fall to 4.5 percent, which could push mortgage payments to an average of 14 percent more than rent payments, a level last reached in 1998.

·      In some markets, well-qualified home buyers are finding that they can pay less for a mortgage payment than they spend on rent.

·      Although mortgage payments in some areas may be slightly higher than rent payments, the long-term benefits of home ownership outweigh the costs.  Homeowners can deduct the interest they pay annually on their mortgage.

·      Additionally, homeowners can build up equity in their homes over the long term. Historically, homeowners who remain in their homes for at least five years have an average annual rate of return of nearly 12 percent.

·      Unlike rent payments, a mortgage can be paid off, enabling the homeowner to live in a house free and clear.

To read the full story, please click here

 For more articles:

New Home Buyer Fence Sitters may Lose out to Market

Snag a Deal on a Short Sale

Questions on the 8,000 Federal Tax Credit

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Certified Distressed Property Expert

Qualifications Tightend as Mortgage Interest Rates Lower

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Buyer Qualification has  tightened as mortgage interest rates lower.

Mortgage rates are near historic lows, spurring an increase in mortgage applications and applications to refinance.  However, most financial institutions have tightened their loan underwriting standards, making it more difficult for home buyers to qualify for the best rates.  In many cases, borrowers must issue a down payment of at least 20 percent; borrow $729,750 or less; have a credit score of at least 720; carry low debt relative to reliable income; buy in an area where home prices are relatively stable; and use a community bank rather than a national bank, to qualify for the best rates.
 

·      Most of the risky loan packages, such as “stated income” loans, where borrowers were not required to document their income, and option adjustable-rate mortgages, where consumers could choose to pay less than the interest due, are no longer available.  Some financial institutions offer interest-only loans, but they can be quite costly.

 

·      The majority of today’s mortgage loans are through Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA).  Combined, the government sector accounts for 87 percent of mortgages.  Purely private financing is rare.

 

·      The government entities purchase and/or guarantee loans up to a certain limit.  In high-cost areas, such as most areas of California, the conforming loan limit is $729,750.  The best interest rates are offered on conforming loans.  Jumbo loans – those that exceed $729,750 – are more expensive and can cost a quarter-point to a full percentage point more.

 

·      Fannie Mae and Freddie Mac also have added a quarter-point “adverse market delivery charge” due to declining home prices.  They also have instituted “risk-based pricing,” which raises fees on borrowers with credit scores of less than 720.  Borrowers purchasing a condominium and putting down less than 15 percent also will pay more for a Fannie Mae or Freddie Mac loan.

 

·      Borrowers with a down payment of less than 20 percent also are required to take out private mortgage insurance.  Premiums have increased in most parts of the country, including California.

 

·      Consumers without a 20 percent down payment may be eligible for a mortgage loan through the FHA, which accepts down payments as low as 3.5 percent.  The FHA charges an upfront mortgage insurance premium of 1.75 percent, which can be added to the loan, in addition to a monthly premium.

 

·      Although rare, the U.S. Dept. of Veterans Affairs (VA) and U.S. Dept. of Agriculture offer loans in rural areas with no down payment or mortgage insurance requirements.

 

To read the full story, please click here

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Certified Distressed Property Expert

Snag a Deal on a Short Sale

reasons to buy a short sale

Reasons to buy a short sale!

As more homeowners find themselves underwater — owing more on their mortgage than their home is currently worth — and unable to make the monthly mortgage payments, many are turning to short sales, which allows a homeowner to sell their home for less than owed on the mortgage. With the lender’s approval, home buyers can purchase properties in desirable neighborhoods and at favorable prices.

KEEP THIS IN MIND

•  As of July 2014, the percent of Roseville homeowners underwater on their mortgage is 14.5%, which is lower than Sacramento Metro at 20.0%.

• Unlike foreclosed properties, which may be run-down and vacant for many months, short-sell properties are likely to be better maintained as many owners may still live in the home.

• In a short sale, the homeowner must receive approval from the lender before the sale of the property can proceed. With many lenders overwhelmed by short-sale transactions, it can take between two and six months to execute.

• Working with a REALTOR® who has experience with short sales can help both sellers and home buyers during the transaction. A seasoned REALTOR®  in Short Sales will be able to serve as the mediator between the seller and the lender and lead to a successful transaction, while a buyer’s agent can help with offers, counter offers, home inspections, closing, and more. Make sure you work with a Realtor that knows how to qualify what properties to make offers on. Some properties will never get closed. It depends on many factors:

1.      How many loans are on the property?

2.      How far away is the foreclosure sale date?

3.      Who the loan is serviced by?

4.      Who the investor is that owns the mortgage.

5.      If the seller qualifies for a short sale.

An experienced Realtor will know which properties you should make offers on and which ones that are a waste of time.

• It is important to remember that although the seller may be anxious about selling the property and willing to accept any offer, it is ultimately up to the lender to determine if, and at what price, the property can be sold. Therefore, home buyers should work closely with their REALTOR® to submit a realistic offer.

• Buyers should ask the lender to pay for some of the closing costs as part of the contract. The contract also should specify that the buyer will not conduct an appraisal or inspection of the property until the offer is approved. This added guarantee can protect home buyers from spending money on a home they may not purchase.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

New Home Buyer Fence Sitters May Lose Out on the Market?

j0401054Fixed-rate mortgages of Four percent,  zero-down payment requirements, and a 30-40 percent break on the market value of the house appear to be what many “on the fence” home buyers are waiting for before they consider purchasing a home.

WE ARE THERE!

KEEP THIS IN MIND
• According to a study of more than 700 self-described “on-the-fence” buyers, 44 percent responded that they haven’t yet committed to purchasing a home because they are waiting for lower mortgage rates.  (WE ARE  HERE NOW) 

The study, conducted by the National Association of Home Builders’ research subsidiary,  found that 41 percent of undecided buyers are unsure if they could qualify for financing.  Another 38 percent reported they expect to see home prices decline further.

Again people we are there now- my opinion – people are gambling if they wait longer. The interest rates are good now- even if and when homes will go down- I believe the rates will go up again.

• The study found that concerns about declining property values were most prevalent among home buyers in the Western region, while buyers in the Northeastern and Midwestern states were more concerned with lower mortgage interest rates.

• Of the potential home buyers surveyed, the mortgage rate that seemed most favorable and would be most effective in persuading consumers to buy now is a 30-year, fixed-rate mortgage at 3 percent.  Now we are closer to the mid 4’s.  According to Freddie Mac, interest rates on 30-year, fixed-rate mortgages averaged 5.25 percent for the week ending Feb. 5.
• Survey respondents said guarantees by home builders that their loan applications would be accepted with verifiable proof of income and a “fair” credit score ranked six times more effective than standard application procedures.
• Price concessions, such as a 10-percent discount below market value, appeared to be the most compelling option for on-the-fence buyers.
To read the full story, please click here

To put this into perspective- if you plan to stay in your home for awhile– waiting can price you out of the market.   Home prices are already good.   Get in now while interest rates are still low.  They are the lowest they have been in over 30 years.   While people gamble and wait for prices to drop, they may lose the ability to qualify for a loan if rates climb.  Buyers have to live somewhere and paying rent can be the same price as paying on a mortgage.  Have a CPA run Numbers for you on tax savings with owning a home.  At least once you buy, you are gaining equity for the future when prices come back up.

More articles:

Snag a Deal on a Short Sale

Questions on the 8,000 Federal Tax Credit

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Short Sale Specialist

Plunging Home Prices Good News for 1st Time Home Buyers

Good news for First Time Home Buyers! There are great deals out there.

We have found that at the under $250,000 price range that there are multiple offers all competing for the best deals. We have found that buyers who shop with a Realtor have a better chance getting a house than those who do not. Most times than others- First Time Home Buyers  don’t see the listing until it is too late. By the time they put in an offer, they are already beat out.

Read the article below on some great stats.

NATIONAL ASSOCIATION OF REALTORS® (NAR), the median home price First time home buyersnationwide in December was down 15 percent to $175,400. With current interest rates at or near historic lows, borrowers with a 10 percent down payment could save $254 per month on a median-priced home compared with a year ago.

  •  The percentage of First Time Home Owners that could afford to buy an entry-level home in California stood at 53 percent in the third quarter of 2008, compared with 24 percent for the same period a year ago, according to the CALIFORNIA ASSOCIATION OF REACTORS® (C.A.R.).
  • The minimum household income needed to purchase an entry-level home at $287,760 in California in the third quarter of 2008 was $56,100, based on an adjustable interest rate of 5.91 percent and assuming a 10 percent down payment. The monthly payment including taxes and insurance was $1,870 for the third quarter of 2008.

To read the full story, please click here

For more reading:

Snag a Deal on a Short Sale

Home Ownership more appealing than renting

New Home Buyer Fence Sitters may Lose out to Market

Questions on the 8,000 Federal Tax Credit

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

 

Short Sale Specialist

Fed Adopts Program to Stem Foreclosures

This week’s C.A.R. Mortgage Update contains information Freddie Mac, curbing foreclosures, credit unions, and financial roadblocks to home ownership.

Fed adopts program to stem foreclosures  holding head

The Federal Reserve recently announced it will seek to renegotiate mortgages it owns that might otherwise enter foreclosure, according to Federal Reserve Chairman Ben S. Bernanke. Under the program, the Fed could reduce what a homeowner owes on a mortgage; lower the interest rate; lengthen the term of a loan; or take other steps to prevent a loan from defaulting.

The Federal Reserve’s program will focus on reducing the amount of principal owed by those at risk of foreclosure, especially those with loan balances exceeding 125 percent of the estimated value of their property. It is unclear how many homeowners could benefit from the program, and most individual borrowers will likely not know if their mortgages are owned by the Federal Reserve. If eligible for a loan modification, the homeowner would work with mortgage servicer and not the government directly.

For any questions concerning your real estate situations feel free to give us a call and we can put you in touch with professionals to help you through this tough time. Kathy Dyer 831-717-7047

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

That House May Fit your Budget – ACT NOW!

With home values in many areas declining, the market is providing an Home Buyer info Roseville Caopportunity for many first time home buyers to purchase homes that previously may have been out of reach.  With increased affordability, families can now purchase homes with more square footage, in desirable neighborhoods, and in closer proximity to amenities and public transportation.

·      In California, the median price of an existing home declined to $285,680 in November 2008, down 41.8 percent from November 2007 when the median price of an existing, single-family home was $490,511.   

 

·      The average rate for 30-year, fixed-rate mortgages was 5.01 percent for the week ending Jan. 8, according to Freddie Mac. Lower interest rates coupled with lower home prices can lead to more affordable mortgage payments, enabling some homeowners to move up, and first-time home buyers to enter the market.

 

·      To qualify for the record-low interest rates, borrowers will need a down payment of at least 20 percent and a FICO score of 700 or higher.  In California, a 20 percent down payment on a median-priced home would be $57,136.  Additionally, home buyers will need to pay for any closing costs not paid by the seller. There are though still first time home buyers programs that will help a new home buyer to get into a home with little money down. Just call you Lender for more info to see if you qualify.

 ·      The large number of foreclosures on the market also is presenting an opportunity to purchase a home at a favorable price.  However, some foreclosed homes may be in disrepair and may require additional work to make the property livable.  A program offered by the Federal Housing Administration, 203K Streamline, allows home buyers to borrow as much as $35,000 more than the mortgage to pay for certain renovations, such as new paint, carpeting and appliances that a foreclosed home may need.

 

·      To calculate how much house is affordable, consumers should follow the general principle of dedicating no more than 28 percent of their gross monthly income to covering the monthly mortgage payment, including property taxes and homeowners insurance.  All debt payments combined, including mortgage, credit cards, car payments, student loans, etc., should be less than 35 percent of the gross monthly income.

 

For related articles for New Home Buyers

Best Place to Buy a Home 

Top Mistakes Buyers Make when Placing Offers

Top 10 Questions Buyers Have

Rent vs Own

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

 

Home Selling Tips During the Holidays

Tips for preparing your home for sale during the Holidays and cold weather:

 Tips for selling during the HolidaysAlthough the traditional home-selling season has come to a close, homeowners still may be able to sell by making some minor adjustments that emphasize the home’s attributes. 

 ·      Homeowners in areas with extremely cold weather should take additional precautions when preparing their home for sale during the winter months.  Cleaning out gutters can help prevent icicles from forming and weather stripping windows will help to diminish drafts.  If the house will be vacant, it’s important that homeowners turn off and drain outside spigots so pipes do not freeze and burst.

 

·      Although holiday lights and decorations can look festive, some home buyers may be discouraged if they do not hold the same beliefs as the seller.  If the home is occupied, lighting a fire in the fireplace may be a better option for providing a comforting feeling.

 

·      Energy efficiency is top of mind with many of today’s home buyers.  Providing a list of energy saving alterations, such as wrapping pipes with foam sleeves and replacing windows and appliances, can help draw more buyers.  Providing a copy of recent utility bills also may be helpful.  It’s recommended that personal information, such as account numbers, be blacked out to guard against identity theft.

 

·      Although the winter months mean spending more time indoors, sellers can showcase a beautiful garden or other outdoor draw by displaying photographs taken during the spring and/or summer.  This can help illustrate to buyers the home’s other valuable attributes.

 

To read the full story, please click here:

 

http://online.wsj.com/article/SB123005162931830375.html

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Short Sale Specialist

 

How to Price a Home to Sell in this Market

 How to price and sell and still make a profit in this Real Estate Market

The asking price you set for your home significantly affects whether how much you will profit and how long your home will sit on the market. Your real estate agent’s knowledge of the overall market and what’s selling – or not selling – will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won’t leave money on the table.

 

Here are some points to consider: Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a list price that will encourage buyer activity.

Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse value with cost – in other words, how much you value your home versus what buyers are willing to pay for it. Don’t place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

 

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

 

Short Sale Specialist

 

10 Questions to Ask your Realtor

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10 Questions to Ask Your Realtor about Selling a House

  1. Are you a full-time professional real estate agent?  How long have you worked full time in real estate? How long have you been representing buyers? What professional designations do you have? What are their Real Estate Services?  Knowing whether or not your agent practices full time can help you determine potential scheduling conflicts and his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.
  2. Do you have a personal assistant, team or staff to handle different parts of the purchase?   What are their names and how will each of them help me in my transaction? How do I communicate with them?It is not uncommon for agents who sell a lot of houses to hire people to work with them. As their businesses grow, they must be able to deliver the same or higher quality service to more people.
    You may want to know who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team. If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing?
  3. Do you have a Website that will list my home?   Can I have your URL address? Who responds to emails and how quickly? What’s your email address?Many buyers prefer to search online for homes because it’s available 24 hours a day and can be done at home. So you want to make sure your home is listed online, either on the agent’s Website or on their company’s site. By searching your agent’s Website you will get a clear picture of how much information is available online.
  4. How will you keep in contact with me during the selling process, and how often?Some agents may email, fax or call you daily to tell you that visitors have toured your home, while others will keep in touch weekly. Asking this question can help you to reconcile your needs with your agent’s systems.
  5. What do you do that other agents don’t that ensures I’m getting top dollar for my home?  What is your average market time versus other agents’ average market time? What are their marketing strategies?Marketing skills are learned, and sometimes a real estate professional’s unique method of research and delivery make the difference between whether or not a home sells quickly.
  6. Will you give me names of past clients?Interviewing an agent can be similar to interviewing someone to work in your office. Contacting references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.
  7. Do you have a performance guarantee?   If I am not satisfied with your performance, can I terminate our listing agreement?In the heavily regulated world of real estate, it can be difficult for an agent to offer a performance guarantee. If your agent does not have a guarantee, it does not mean they are not committed to high standards. Typically, he or she will verbally outline what you can expect from their performance. Keller Williams® Realty understands the importance of win-win business relationships: the agent does not benefit if the client does not also benefit.
  8. List price: Do not get fooled by choosing the agent that suggests the highest list price or discounts their services fess. You get what you pay for when hiring an agent, one that will get the job done for you in the fastest amount of time.  Hire an agent that will be honest with you on pricing- you want one that is up front and open with you and will give you the truth about what the pricing model needs to be.
  9. How would you develop pricing strategies for our home?Although location and condition affect the selling process, price is the primary factor in determining if a home sells quickly, or at all. Access to current property information is essential. Ask your agent how they created the market analysis, and whether your agent included, foreclosed homes and bank-owned sales in that list.
  10. What will you do to sell my home?Who determines where and when my home is marketed/ promoted?  Ask your real estate agent to present to you a clear plan of how marketing and advertising dollars will be spent. If there are other forms of marketing available but not specified in the plan ask who pays for those. Request samples or case studies of the types of marketing strategies that your agent proposes (such as Internet Websites, open houses).  We are finding that multiple open houses are not a great way for you agent to spend their time. An initial open house is a good way to get the local agents and neighbors into your home once it is listed.  We are finding that in our area- most people tend to attend bank foreclosure open houses more.

    Kathy Dyer Realtor CABRE #01723710

    kdyer@KW.com  831-717-7047

    KW Coastal Estates

    Carmel Ca. 93923

    Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

How to Find out if your Landlord is in Foreclosure

How to find out in you land lord is in foreclosure

Finding out if your prospective landlord is about to go into foreclosure simply a good idea for any tenant who is contemplating renting. You don’t have to wait until the Sheriff shows up at your door with an eviction notice. You can be notified immediately when a Notice of Default is filed by your landlord’s lender, indicating that a foreclosure process has begun.

Here is how to find out if your landlord is in foreclosure.

  • Call a local title company and ask for customer service.
  • Give the customer service rep the property address and ask for a free copy of the first deed of trust to be emailed to you.
  • Print the copy of the deed of trust, because you will need to know the document number, book, page, name of beneficiary (the lender) and name of trustor (the landlord).
  • Go to http://www.foreclosureforum.com/forms/request_notice.pdf to access a free Copy of Notice of Default.
  • On your computer, fill in the blanks with the information above from the deed of trust, and enter your name and address in the space provided.
  • Print the Request for Copy of Notice of Default.
  • Sign it in front of a notary.
  • Attach a check for made payable your county’s Recorder. Check your counties website for more info.

The Request for Copy of Notice of Default will be recorded upon receipt. Then, if your landlord’s lender files a Notice of Default, you will receive a copy of it in the mail. Foreclosures in California take about 3 1/2 to 4 months to complete. This time period should give you ample opportunity to work out the problem with your landlord. You might also consider asking if your security deposit can be applied to rent because once the foreclosure is complete, your lease is no longer valid, and you might not get your security deposit back.

If you prefer to handle the entire procedure in person, you can go to your County Recorder’s office and pull a copy of the deed of trust. Take the Request for Copy of Notice of Default with you and fill it out at the Recorder’s office. Get it notarized, pay your money, it shouldn’t be much,  and you’ll go on record that afternoon or the following day.

Tenants in foreclosure should know that California law gives tenants the right to receive a 60-day notice.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

7.5 million homeowners “underwater” Ask your lender for assistance now

Ask lender for mortage assistance and latest programs to get help

Home Owners are Underwater!

According to some estimates as many as 12 million borrowers may have negative equity in their home, meaning that they owe more on their mortgage loans than their homes are currently worth. However, according to statistics gathered by C.A.R. over the last 40 years, homeowners who purchase a house and keep it for at least five years have an average annual rate of return of nearly 12 percent.

Although California’s inventory of homes with high negative equity is higher compared with other states, lower home prices have increased affordability, making it easier for first-time home buyers to enter the market and others buyers to move up to larger houses or more desirable neighborhoods.

Borrowers who are facing foreclosure should work with their lender and apply for a loan modification program. Many financial institutions are offering homeowners the opportunity to rewrite an adjustable-rate mortgage into one that is fixed for 30 years. Some banks also are offering existing customers zero interest for a short period of time and lowering the principle balance on the loan to make payments more affordable. Call you lender to see if they will work with you. If you can not afford your mortgage anymore, contact your local short sale specialist who may be able to help you avoid foreclosure.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Countrywide Bank Loan Modification for Troubled Home Owners

Bank of America, which acquired Countrywide in July, said that nearly 400,000 troubled homeowners who have subprime mortgages and option adjustable-rate loans through Countrywide may be eligible for loan modifications. To be eligible for the Bank of America plan, homeowners must occupy the home as their primary residence; the mortgage must be seriously delinquent — or likely to become so; and the loan must have been serviced by Countrywide and originated prior to Dec. 31, 2007. Bank of America will help borrowers by restructuring first-year payments of principal, interest, taxes and insurance to no more than 34 percent of the borrower’s income; halting foreclosure sales against borrowers who are likely to qualify for a loan modification; and waiving restructuring fees and prepayment penalties.

To read the full story, please click here:
http://www.usatoday.com/money/economy/housing/2008-10-06-countrywide-mortgages-settlement_N.htm

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

What to do if you cant Afford your Mortgage Payment

What to do if your can’t afford your mortgage payment?

The majority of the mortgage modification programs from the larger lenders only are available to homeowners who either already are in default or are at risk of defaulting on What are my options if I cant get a loan modification?their primary residences. However, some homeowners, in particular those who may default on a vacation home or an investment property, have some options available.

Homeowners who are in default or at-risk of defaulting should contact a reputable credit counseling agency to discuss possible options other than foreclosure. When calling a credit counseling agency, the homeowner should have their loan number, most recent mortgage statement, bank statements and a letter demonstrating financial hardship. To find a credit counselor, visit the U.S. Dept. of Housing and Urban Development’s (HUD) Web site at: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA or the non-profit organization National Foundation for Credit Counseling at http://www.nfcc.org/.

Homeowners should contact their loan servicer as soon as possible to try to work out potential solutions. According to the Federal Housing Finance Agency (FHFA), some borrowers who do not meet the requirements for an existing mortgage modification program may still be considered for a loan adjustment based on personal circumstances.

If a mortgage modification is not possible, homeowners may want to consider a short sale — sell the home for less than the amount of the mortgage. Although a short sale enables a homeowner to avoid foreclosure and often causes less damage to the homeowner’s credit score than a foreclosure, the lender must agree to accept the loss and in most cases the homeowner may not have to pay taxes on the difference. Also, many lenders are overwhelmed by the large number of short sales being submitted by homeowners, so it could take longer than usual to receive a short-sale acceptance from the lender. The home owner can stay in their home while the approval takes place. Sometimes home owners may qualify for moving assistance from 3,000 – 5,000.

If a homeowner cannot qualify for a mortgage modification or a short sale, some lenders will consider a deed in lieu of foreclosure, where the homeowner transfers the title to the lender in exchange for debt forgiveness. Home owners may qualify for Cash for Keys programs as well. Properties that have additional debt, such as home equity lines of credit or additional mortgages, may not qualify for a deed in lieu of foreclosure. Homeowners who have additional debt tied to the property must share this information with their lender for consideration when applying for a short sale.

Call an experienced Short Sale Realtor who is not only certified but has good results closing short sales.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Red Flags of Foreclosure Related Scams

Red Flags on Mortage related scams

RED FLAGS of FORECLOSURE RELATED SCAMS

With the high number of foreclosures lately, foreclosure-related scams have exploded onto the real estate scene. Many scams are aimed at homeowners in foreclosure, investors, buyers, tenants, and other people involved in the foreclosure process.

Once a person is late on their mortgage payment- a notice of default is filed and that notice becomes public knowledge. Anyone now can contact an unsuspecting person and lure them into a scam.

The following are some red flags to watch out for:

  1.  Asks for money upfront before providing any service
  2. Asks for payment only in the form of cash, cashier’s check, or wire transfer
  3. Asks for a transfer of title or an interest in the property
  4. Gives an unqualified promise to stop foreclosure or other assurances;
  5. Offers to buy a home for a price above its market value
  6. Asks for something to be done immediately without delay
  7. Asks for the homeowner to give a power of attorney
  8. Asks for signatures on a grant deed or deed of trust
  9. Asks for signatures without giving homeowner a lot of time to review the documents
  10. Asks for signatures on a document that has lines left blank
  11. Fails to provide copies of documents signed
  12. Refuses or fails to provide an oral promise in writing
  13. Instructs a homeowner to make mortgage payments to someone other than the lender
  14. Instructs a homeowner not to discuss the situation with the lender, housing counselor, accountant, attorney, family, friends, or others.

Avoiding Mortgage Scams

Making Home More Affordable Program

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area