Hey wanna be buyers…got this great information from one of our fave Lenders, Derek Beisner.  Wanted to share!

Thinking of submitting a Home Loan Application now that the First Time Buyer credit was extended?

Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to payback the loan you are requesting. My team and I have a streamlined loan process to help you get your ducks in a row prior to this review. A grand slam loan package is in perfect order and answers all the important questions up front. We know what the lenders are looking for, based on long-term relationships with them and extensive knowledge of guidelines for a multitude of loan programs that are available today.

What is the lender looking for when they review the loan application?

The lender wants to know about your personal financial picture, including savings and credit history and your employment stability. The co-borrower’s history is also taken into consideration. The lender also considers the loan amount and appraised value of the home you are looking to purchase. Not every applicant is approved the first time through the process. If the underwriter has any questions or concerns, he or she will require certain conditions be met before they approve the loan. Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.

What can I do on my end to make it easier?

Before taking out a home loan it helps to establish a consistent record of paying your bills on time. If you have utility bills that are overdue, bring these up to date. Make sure you are paying credit card installments in a consistent and timely manner.

We can help you evaluate your debt-to-income ratio to determine what mortgage payment will be comfortable and affordable for you on a monthly basis. Aim for having enough savings to cover your down payment, closing costs if necessary, and two month’s expenses in case of emergency. We’ll help you find the loan program that works for you.

If I just started a new job six months ago, can I still apply for a loan?

A stable employment history is important, but the lender does take human factors into consideration. If you’ve recently completed college or vocational training, or were released from the military, you have good cause to have a lack of consistent work history. If your profession is seasonal, and gaps in employment are normal in your field, there are loan programs that can work with your situation. If you are a freelancer or do contract work, the lender will look for consistency in income over the last two years.

Consistency is the key word in the lender’s mind. But know that lenders have developed many different loan structures to meet the needs of the general public. When your grandparents bought their first home, they probably put 50% down and made a lump sum payment when the note was due. Times have changed, and so have loan programs. My team and I stay on top of current mortgage trends. We monitor rates daily and have a support network of RealtorsR, CPAs, Financial Planners and Credit Repair Consultants to lend you additional assistance.

Call me directly for a free consultation.

Derek Beisner
Certified Mortgage Planner
Premier Lending Group
Phone: 949-637-9939
Fax: 949-380-1819
derekb@plgp.com
www.DerekBeisner.com

Its interesting, we’ve been doing real estate for years now and haven’t had to answer the “How do I buy a HUD home?” question.  We don’t see that many come around.  Today, however, we found a 2/1/1 in Mission Viejo for 160K!

What exactly is a HUD home?

Of course, you know HUD stands for US Dept of Housing and Urban Development.  The listing agent, Barbara Kerr with Realty Execs, explained HUD homes as properties with FHA loans that had been foreclosed on.  Because FHA is a government backed loan, these properties go back to HUD when owners abandon the property or go through foreclosure.

How do I buy a HUD property?

Not just anyone can get their hands on one.  HUD homes have a special key to enter; they don’t have normal lockboxes and supra keys us Realtors typically use.  Interesting… *thought* there could be less competition for our buyers on these properties because this is an additional hoop to jump through. Of course, we checked the details on the website – we need to have a Name and Address Identifier number with HUD in order to make a bid.  It appears the required NAID # is issued to our broker, not us.  So, we’ve been in touch with Darrell our fabulous broker to see about getting all set up

Barbara, the nice & helpful *yay, rare!* listing agent, said she gives a class on it, I told her I would like to attend.  I’ll blog more after that…We’re always learning something in real estate!

Having capability to offer on HUD properties will help both our investor and first time buyer clients – double win!!

Hi all,

We know. You want to buy a home in Orange County because prices and rates are down.  Plus, there’s so many tax incentives right now.  Buuuut the down payment hasn’t magically appeared in your bank account.  Well, we may have a solution for your down payment blues.

This week I had breakfast with another one of our preferred lenders, Bruce Campbell. I wanted to let you know about a loan option Bruce offers which I haven’t seen from other lenders:

FHA based loan that only requires a HALF PERCENT down!

What?  Half a percent? Like, if I were buying a $200,000 condo……….. $1000 dollars? How could that be?????

I know, I asked the same thing. The program basically involves TWO loans – your first is an FHA loan, and your second is an ‘access’ loan. When you buy a property with a normal FHA loan, you are required to put 3.5% down. The second ‘access’ loan in this scenario pays your other 3%, so this is how you get away with only putting down a half percent.  *please note, there are other fees buyers need to pay such as inspection, escrow, and any other fees you agree to on page 2 of the purchase agreement.  These fees are all minimal compared to a down payment, though!*

I immediately asked about the rate of the 2nd access loan, thinking it was probably high. Bruce said its usually less than 8.25%. That’s way better than a lot of seconds, and if I recall correctly it wasn’t a variable rate loan. Ok, that base was covered.

What about other stipulations? Who qualifies? I was suprised there weren’t more – the main 3 were:

1. In Orange County, combined max household income needs to be LESS than 103K.
2. You need a 580 credit or above (this is for all FHA loans, though)
3. Your Debt to Income Ratio can’t be higher than 43%. If you want to buy a home in Orange County, but don’t have 3.5% saved, this program could be a great option for you as long as you match the above criteria. You don’t even have to be a first time buyer!

Bruce said he’d be happy to talk details with you, no obligations. Here’s his contact info so you can find out for sure if you qualify:

Bruce Campbell

BR.Campbell@cox.net – 949.540.2300 ext 343

As geeky Realtors Mike and I are constantly trying to drag our vendors kicking and screaming into the big new technical world, so we can all work more efficiently together.  Below I am posting a letter I just sent to our CA public representatives to try to talk some sense into FHA when it comes to accepting digital signatures.

I guess a lot of agents are getting offers kicked back because they don’t have ‘wet’ signatures.  This upsets me greatly as a professional in the industry because right now on the average my FHA clients are having to submit at LEAST 5 offers to get one accepted.  A normal offer is no less than 25 pages, so in essence FHA is killing trees, wasting ink, and WASTING MY TIME & GAS to go and meet with these buyers for wet signatures.  As far as I’m concerned, a digital signature is no different than a fax…so what’s the problem??????  Please comment your thoughts below.

Dear Commissioner Stevens:

Until recently, many real estate professionals, such as myself, have been successfully using electronic signatures to execute purchase and sale agreements. In the last year, we have been experiencing considerable problems in connection with FHA loans—loans which now dominate the market and fuel the buying and selling of homes. While other federal agencies and market participants are readily and eagerly accepting electronically signed agreements, FHA is refusing to accept electronic signatures on real estate purchase and sale contracts.

As a result, real people–consumers and real estate professionals alike–are being negatively impacted:

* Commerce is significantly slowed as lenders retract long-standing policy decisions to accept electronic signatures on P&S agreements;
* Real estate and mortgage loan closings are being delayed because lenders and escrow agents are having to chase down “wet” signatures to meet the FHA rules;
* Delayed closings are resulting in foreclosures;
* Short sales are also being impacted;
* Valid and legal contracts entered into between buyers and sellers are being ignored; and
* Significant productivity gains for real estate professionals are being lost.

Use of e-signatures in real estate transactions has a positive impact on the economy with the average REALTOR saving over 6.6 hours per week. Unfortunately, because of the current status quo and problems with lender acceptance, REALTORS are only using e-signatures in 45% of their purchase transactions due to lenders and escrow not accepting e-signatures at the closing table. With electronic signature acceptance by the FHA, REALTORS and lenders using e-signatures could be saving another 5.4 hours/week of productivity. Without a clear written policy on electronic signatures, this equates to a 13.5% drag on economic productivity based on a 40 hour work week.

E-signatures are not a new idea. Signed into law in 2000 by President Clinton, the ESIGN act made it clear that documents and signatures in electronic form have the same standing as paper documents and handwritten signatures. RESPA and TILA rules recognize the use of electronic records to meet disclosure requirements. Fannie Mae and Freddie Mac accept electronic signatures on all loan documents. By not recognizing electronic signatures on purchase and sale contracts, these otherwise 100% valid electronic transactions, FHA is single-handedly setting e-commerce back years and is creating real economic hardship.

As a real estate professional impacted by FHA position on electronic signatures, I am asking FHA to take action immediately and to issue a Mortgagee Letter (similar to the Mortgagee Letter for the use of electronic signatures on appraisal documents) providing clarification on the acceptance of electronic signatures on purchase and sale contracts. Without a clear statement from FHA on this matter, consumers, real estate professionals, and the economy will continue to suffer undue and unnecessary delays and increased costs.

Sincerely,

Mike & Angie Weeks

Smokey grabs some water from a fountain at San Remo park in Laguna Terrace.

Happy Saturday everyone!

We’re going to take Smokey to the dog park today and wanted to share these links with various dog parks in Orange County:

http://www.ocdogfriendly.com/dogparks.html

http://www.ocregister.com/ocregister/life/pets/dogparks/article_1640738.php/

For us, our dogs are our kids, and we know some of you spoil your pups even worse than we do.   What a better way than taking them out for an afternoon romp!

For travelers, we found Laguna Beach has some great dog friendly hotels, too.  We’ve stayed at Casa Laguna with Smokey – its nice place with some history behind it!   Walking along Laguna Beach is one of our favorite things to do, there are so many people, beautiful homes, and dogs to see

Where is your favorite dog hang out?  Let us know – comment below!  Have a wonderful weekend!!

Hi all,

I was just meeting with one of our first time buyer preferred lenders, Manny Piceno.  Manny plays hockey with Mike at Aliso Ice rink, and he’s always been one of our favorite g0-to guys because he’s full of good info but not full of himself

If you’re not actively looking for a home right now, you may not know that the most common first time buyer loan, FHA, has stricter guidelines than other loan packages.  FHA is a great 1st time buyer loan to get because its fixed rate, backed by the government, AND you only need 3.5% down.

BUT, there are additional guidelines for FHA loans.  One of those guidelines is that the HOA doesn’t have too many homeowners defaulting on their HOA payments.  When people get in financial trouble, one of the first bills they stop paying is the local HOA.  Also, the HOA needs to have a certain percentage of owner occupied properties.  If too many investors own and are renting out properties in that neighborhood, it may not be FHA approved.

FHA approved neighborhoods in Orange County – how the heck do you find them?

Well, Manny let us know about this website:

https://entp.hud.gov/idapp/html/condlook.cfm

Of course, its not perfect and the status of neighborhoods is constantly changing, but at least  you can have a resource to get an idea.

What about spot FHA approval for Orange County condos?

Well, its possible, but highly UNlikely if your neighborhood is listed on this website as ‘withdrawn’ or ‘rejected’.  If you’re a first time buyer doing an FHA loan, you just cannot buy a property in that neighborhood.  We’re sorry, you may complain to the government   Or, you can borrow $$ so you have a 20% down loan, and buy wherever the heck you want.  Really, although it can be frustrating to be limited when buying your first property, FHA is truely looking out for you and your best interest.

If you DID buy a property in a neighborhood where the HOA is belly up, the exterior could go south quickly and then it would be hard to sell.  Don’t believe us?  Call and ask Angie about how she had to be an expert witness in a court case where the HOA went bankrupt and the complex is now INFESTED with termites.  A poor unsuspecting homeowner cannot sell her condo, and she had a shady Realtor represent her in the buy.  She is still living with lots of winged roommates, and this has literally been going on for YEARS.  If FHA loans would have been available in CA at the time she bought, they would have prevented all the drama for her.  So sometimes, being told no is a good thing people!

Please call us if you have any questions about getting an FHA pre-approval.  You CAN own a home, we can help! 877-230-3211

So, you can’t find any decent REO’s, or you’re getting outbid.

And there’s not enough equity sales.

You want the 8k homebuyer credit.

You find youself here, fishing in the sea of short sales in Orange County.

You’ve already read our post about what every buyer needs to know about a short sale.

But you’re still stuck!  Short sales won’t close in time for the 8K first time buyer credit, right?!  Honestly, probably not 80% of them.  But a small percentage will.  What clues should you look for?

1. Check for the word “approved” in the notes.  Short sales that have been approved by the bank can many times sell within 30 days.  Its getting the bank’s approval that usually takes months.

2.  Look for experience / feel of the listing agent or team. Do they respond?  Are they on top of things?   If the listing agent doesn’t know how to deal with the bank it can add months to the process.  Go ahead, Google them.
3.  Do you see Short Sale – Notice of Default on the MLS report ?  This means the property is in process of foreclosure and the bank has filed a notice of default on the property.  You’d think notices would be filed immediately, but many times the bank waits for 3, 6, or 9 months of no payments until filing the NOD.  After the notice is filed, stats are very high that a foreclosure will occur within the next 90 – 120 days.   On short sales with a NOD the bank has a little more motivation because they aren’t receiving any money from the current owner, and they are being offered in essence, a settlement and solution with your offer.

4.  Check for Short Sale – offers submitted – this indirectly tells you the current owner has submitted the hardship package, because it usually needs to be submitted with the offer.  That being said, I have seen this status used when agents had a lowball offer in hand but NOT submitted to the bank.  It depends on the agent, and their ethics.  This status is better than a short sale with no offers submitted, but you are still probably looking at at least 60 days and multiple offers when here.  Not worth chancing for your 8K credit, we need to find you an approved short sale or one close to foreclosure.  PERIOD!

5.  Check notes for only one mortgage!  We’re currently STILL WAITING for an answer to one of our “approved” short sale offers that was literally submitted in JUNE.  (Its Sept.)  The first “approved” the price, but the second loan had not approved their settlement, and the agent didn’t notate that detail in the listing.

Short sales are complicated, but we can help.  Mostly by having the best Orange County MLS searches so you get new REO and equity listing emails the DAY they come on the market!  We still recommend buying foreclosures or equity (normal) sales to have the best experience with today’s market.

Hi everyone, this is an article written by Mary Jane Cambria, 2009 Orange County Association of Realtors‘ President. As an agent, many of my buyers are feeling this pain, and I am posting with permission to help bring about awareness and change to make your experience with buying Orange County real estate a pleasure!

There’s an old story that goes like this:

“A city boy moved to the country and bought a donkey from an old farmer for $100. The farmer agreed to deliver the mule the next day.

The next day, the farmer drove up and said, “Sorry, but I have some bad news. The donkey died.”

“Well then, just give me my money back.”

“Can’t do that. I went and spent it already.”

“Okay then. Just unload the donkey.”

“What ya gonna do with him?”

“I’m going to raffle him off.”

“You can’t raffle off a dead donkey.”

“Sure I can. I just won’t tell anybody he’s dead.”

A month later the farmer met up with the city boy and asked, “Whatever happened with that dead donkey?”

“I raffled him off. I sold five hundred tickets at two dollars apiece and made a profit of $998.”

“Didn’t anyone complain?”

“Just the guy who won. So I gave him his two dollars back.”

It’s not nice to sell dead donkeys. Nor is it nice if, instead of a donkey, you list an REO property on the MLS as active when it should be in “back up.”

By the rules of the MLS, when an owner accepts an offer, the listing agent is required to change the property’s status even if, as we all have experienced, the bank takes weeks to approve the transaction.

A friend of mine suggests that agents are committing a fraud when they allow properties to stay active even as an accepted offer awaits lender approval. “I could be spending time with my mother who is in stage IV kidney failure instead of calling on so-called active listings. It wastes time and distorts true market inventory,” she complained to me recently.

I understand her frustration. But I understand the listing agent may be frustrated too, when forced to wait, sometimes for months, their deal is rejected by the bank. They are trying to serve their clients—sellers often in distress, selling short and desperate to resolve their financial crisis.

I do not have a perfect solution to this but wish to point out that the REALTOR® Code of Ethics stipulates there is an “obligation to treat all parties honestly.” And Article II subsequently states, “REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction.”

The most successful REALTORS® practice the art of cooperation to perfection. Professionalism is the bedrock of their business: They nurture their image and reputation in small ways, including being courteous to colleagues.

We cannot forget these basic principles because we are frustrated. Rationalizing poor business practices because the market is in turmoil is no way to convey confidence and trust to our clients. I can only imagine what an anxious buyer must think touring all day long only to find out that none of the properties he or she visited are actually for sale.

In the end, we cannot persist in criticizing lenders for being unresponsive and neglectful, when we in turn go about our workday refusing to return phone inquiries on our REO listings.

Author bio………………………………………

Mary Jane Cambria serves as President of the Orange County Association of Realtors®, which is the 2nd largest Association in California.   Mary Jane is Broker/Owner Cambria Real Estate. She has earned many achievements in her 20-year real estate career.  She serves as a director for the California State Association of Realtors® and as a National Association of Realtors® director. She was the 2004 California State President for Women’s Council of Realtors® and was awarded the: 2007 State Member of the Year. She serves as a volunteer at Fair Housing of Orange County with the Foreclosure Prevention Program and teaches First Time Buyers Classes there and at Neighborhood Housing Services of Orange County. She is a director on the OCHOPC council (Orange County Housing Collaborative, Director for the Orange County Housing Trust, and Director for AREAA (Asian Real Estate of America Association and a member of the Orange County District Attorney’s Advisory Board for the Real Estate Fraud Department.

MARY JANE CAMBRIA,
CIPS, CRS, GRI, LTG, PMN, SRES,E-PRO
2009 PRESIDENT ORANGE COUNTY ASSOCIATION OF REALTORS®

Hi everyone!

Thought you’d enjoy this real estate update from Suze Orman – feel free to post questions below!

There’s a ton of Orange County Short Sales out there, and we’re finding many of our buyers are still confused on what a short sale is, and how long it takes to close.  We wanted to give you the scoop on what to expect if you’re searching the Orange County short sale market.

First, what is a “short sale“?  In laymans terms, short sales are properties that have depreciated to the point where the amount mortgaged on the home is more than the home is currently worth.  Because the owner is forced by circumstances either financial or personal to move, they actually have to negotiate with the bank to take a lesser amount than is mortgaged on the property.

So, what does this have to do with you, the buyer?  A LOT.  Short sale rules are different, and we want you to know what to expect if you fall in love with a short sale property.  Here are a few “must know facts” when dealing with short sales.

1. The price you see on the MLS is not always APPROVED as the sales price. WH-WHAT?  Isn’t that like…false advertising???   Maybe, but that’s correct.  Many banks will not even consider taking a lesser amount than you owe for your home until you have an offer for your home on the table.   The short sale condo in Mission Viejo you like could literally be listed on the MLS for $299K, but once you submit your offer for $299K, the bank comes back and says “no go, we want $315K”.  As the buyer, you can choose to walk at that point, but you need to be aware this can and does happen regularly.
2. Short sales are anything but short. Remember, the bank has to “approve” the price of your offer, not just the current owner of the home.  Many times it takes weeks and even MONTHS for them to get back to you.  For this reason, if you need to be into your new home in 6 months or less, you may want to eliminate short sales from your property search.  Make sure you’re using a professional Realtor *like us* because we can help to sniff out how far along a short sale is.
3. You’re expected to play by the bank’s rules. Every bank is different.   After making you wait for months, many banks come back and expect you to close in a whirlwind of 3 weeks or less  (this is NOT a reasonable amount of time to get a loan anymore).  Also, the bank may want to re-write the CPA (California Purchase Agreement) and have you sign forms their lawyer has created for the transaction.  This makes many people uncomfortable, so be prepared!
4. After the bank accepts your offer, they still have the right to accept someone elses offer. SERIOUSLY?  Seriously.  Because the bank is put in the situation where they are taking less money than they are owed, it is their right to accept someone elses higher or stronger offer AFTER they accept yours.   You could literally have your bags packed and get this bad news, and as your Realtors we want you to know its a possiblilty.  This doesn’t happen that often, because the bank just wants to get the process done too, but it can happen.

Orange County short sales are a roller coaster to say the least!  Don’t be discouraged, though.  We can help.  Or, we can weed out the short sales for you.  There are still plenty of Orange County foreclosures to buy, too!   That’s a blog post for a different day

This is an historic time to jump into the home buying market!
Home sales in Orange County are UP and home prices are DOWN by 32%!
That is a perfect combination!
Renters, access your situation and you may realize that owning a home is within your reach.  These steps will make your home owner dream a reality!

  Talk with a lender, your bank, credit union to see what your credit score, income and debt will allow you to buy.

 Set up a customized search on our website.  You can put in the criteria to find exactly what you are looking for.
 You can contact us anytime, and we will research any property you are interested and give you all the details you need prior to seeing the home.  Get pre approved for a loan.  This will put YOU in the drivers seat when you find a home you are interested in.   Bank owned properties can sell within a couple days,  great deals DO NOT last on the market for long, if youare pre approved, you are one step closer to making that offer a reality.  Check our our website for a list of qualified  lenders,  our clients always compliment Derek Beisner, on his professionalism, intelligence and honesty.

 The incentives to buy a new home in California make the process easy.  You may qualify for the federal tax credit
of $8,000, the California credit of $10,000 and you can put as little as 3% down with FHA financing!  
DON’T THROW YOUR MONEY AWAY ON RENT WHEN THESE TYPES OF OPPORTUNITIES ARE THERE FOR YOU TO OWN NOT RENT!

We are here to help, in any way, to make your dream home a reality.  Contact us at the WeeksTeam to set up an appointment to get you out of the renters rut!

I was just doing keyword research on Mission Viejo homes for sale, as well as checking some other cities here in the OC.

Its interesting, I’ve found ‘homes for sale’ and ‘foreclosure’ searches to be up, and ‘real estate’ searches to be down:

Mission Viejo Real Estate – 5400 searches last month compared to 8100 average

Mission Viejo ca homes for sale – 22,200 searches last month compared to 18,100 average

Mission Viejo foreclosures – 33,100 searches last month compared to 9,900 average

Newport Beach Real Estate – 12,100 searches last month compared to 14,800 average

Newport Beach ca homes for sale – 33,100 searches last month compared to 22,200 average

Newport Beach foreclosure – 12,100 searches last month compared to 2400 average

Orange County Real Estate – 40,500 searches last month compared to 33,100 average

Orange County homes for sale – 9900 searches last month compared to 5400 average

Orange County foreclosures - 6600 searches last month compared to 4400 average

This data comes from Google’s keyword selector tool, so it may be a raw indication that interest in Mission Viejo and Orange County foreclosures and homes for sale is up.

What do you think??  We’re getting more people signing up for online searches lately, and more questions instead of complaints while we’re out in the field…

Looking for a fun outdoor activity in the OC? Here’s some things to do for all ages:

Orange County Zoo :
All kinds of animals – plus the zoo is inside Irvine Park, where you can also ride the railroad and have a relaxing picnic

Lake Mission Viejo :
Go swimming, fishing, or boating.  The lake is closed to guests on holidays before 6pm, though   Make sure you bring your pass!

Crystal Cove state park :
Enjoy a brisk hike, and some historic coastline cottages.  Plus the drive to get there on PCH isn’t so bad either.

The best part is you can do any of the above for between $10-$20 per person, so there’s no excuses not to get out there and grab yourself a little sunshine!

Happy Memorial Day and God bless our troops and their families!!!

CALIFORNIA and FEDERAL Home Purchase credit

This valuable information is provided by Derek Beisner, Certified Mortgage Planner.  There are numerous reasons why this is the BEST time to buy a home.  California and Federal home purchase credits, LOW interest rates, financing incentives including 3% down and values on homes throughout Orange County.
IF you are renting or want a bigger and better home, call us today.  We will customize a search to meet your criteria and you will be in your dream home soon.  Read below to earn $18,000 in tax credits!  Don’t wait another minute!

CALIFORNIA HOME PURCHASE CREDIT

1. New home only, purchase between 3/1/09 and 3/1/10,    inclusive.
2. Two year residency requirement.
3. Credit is $10,000
 

FEDERAL HOME PURCHASE CREDIT

1. Any home purchase qualifies if purchased between 1/1/09    and 12/1/09.
2. Three year residency requirement.
3. Credit is $8,000.

Should you? Shouldn’t you?

Yes, we’re biased, BUT we think its time. Why?

1. Its cheaper for you to borrow money right now than it was for your parents to.

2. Home prices have been slashed by about 40% in the last couple of years.

3. Your mom wants you outta the house. Borrow some $$ one last time for a down payment on an FHA loan and make her proud

As of Friday, March 27, 30 year fixed loans are at 4.5%. This is the lowest rate in over 40 years!

Home sales in Orange County are up almost 49% this year, while home prices are are down for the 18^thconsecutive month.

Here are the facts:

• California lawmakers approved a new budget that includes a $10,000 tax credit for home buyers, the largest home buyer incentive EVER offered in in U.S. History. This incentive is offered between March 1, 2009- March 1, 2010.

• This tax credit is not limited to first time home buyers and you DO NOT have to pay it back as long as you stay in your home for 3 years!

• This California credit CAN be used with the $8,000 first-time home buyers credit made available by the Stimulus Plan.

• This means, IF you are a first-time home buyer in California, and you purchase a home that is over $200,000, you’ll get $18,000 in tax credits if you stay in your home for 3 years.

• If you take advantage of FHA Financing, you can put as little as 3% down on your new home. That could equal a few months of rent, and at the end of the year, you will have a tax credit!

OWN YOUR OWN HOME NOW!   Take advantage of LOW interest rates, lucrative tax incentives, many financing options and low down payment options!

Also,  your home = your decisions! Create your dream garden, paint in bold bright colors, decorate any way you wish!

Did you know only 1% of lenders are actually Certified Mortgage Planners? Contact one of the best! Derek Beisner provided us with the above information and is a WeeksTeam client favorite!

We at the WeeksTeam are here for you and will customize a home search to fit your criteria. Let’s work together to make your housing dreams a reality!

Do you have any friends in Orange County going through foreclosure? They aren’t alone, and hopefully you will forward them this link.  Here’s 3 things you should know about foreclosure:

1.  Just because you’re late doesn’t mean you’ll be out on the street
2.  The bank doesn’t want your house back.  The bank is willing to work with you.
3.  There are FREE NONPROFIT organizations who are happy to help

90% of avoiding foreclosure is having the strength to fight your fears and deal with the people you don’t want to when you are down and out on your luck and finances.  Here is a PDF link to Orange County nonprofits who can help you avoid foreclosure:

FREE ORANGE COUNTY AGENCIES

TO HELP YOU FIGHT FORECLOSURE

Other agencies to contact who can help you avoid or deal with foreclosure are HUD, FHA, Freddie Mac and Fannie May.  Even the White House has a blog post to help you.  You worked hard to get the house, now work hard to keep it.  We know its hard & scary but YOU CAN DO IT!!!

Many banks are also creating home-preservation programs and have offices set up near you where you can talk to a face and eliminate the phone tree nightmare. For example, Wamu/Chase has a center set up in Santa Ana – call 866-550-5705 if you have a loan through them and want to find the closest center to you.

BEWARE:  There are a ton of shady people preying on those who are scared and late on payments right now.  Its ok to talk to professionals about your situation, but before you pay someone money to help you you should:

1.  Make sure they have a good reputation.  I’m talking personal referrals, not good sales staff.  GOOGLE THEM!
2.  Get every service they say they will provide you in writing
3.  Verify they are licensed – only licensed professionals have the right to accept $$ for services!

Its always best to exhaust your free options first.  These people want to help out of the goodness of their heart, not the goodness of their bank account.  USE YOUR RESOURCES its a tough process to go through alone!  Feel free to post your foreclosure solutions and problems below!

If you’re one of thousands who already lost the battle with foreclosure, its ok, most successful investors have been through it too!  Here is a post-foreclosure blog post for you to read.  We are happy to help direct anyone who is at any stage of this process to the right professionals, so don’t hesitate to call 877-230-3211 if you need some help or advice.  After all, its not just our duty to help you buy or sell a home.  We want you to retain it!!!!!

How does the stimulus plan affect you, the first time home buyer?  What if you are ready to buy a bigger home?  Are you renting and want a place to call your own?  Read the following article, written by Derek Beisner, a local Certified Mortgage Planner.  Only 1% of all lenders in the Country are actually Certified Mortgage Planners.  Derek told us that within the last week, interest rates are the lowest they have been in decades!  Contact Derek, he will run the numbers for you, and you will know exactly where you stand.  You will be surprised how affordable it is to own a home!

First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.

According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

We are here for you and will customize a search to fit your needs.  There are amazing values in Orange County and we will find the right home for you!

This question is asked at dinner tables across the country. Here in Orange County, it may be the best time to buy vs. rent.

Orange County ranked #3 for most expensive rent afford ability through the United States metro areas.

Rents and leases are averaging $1,600+ per month; to comfortably pay rent, you would need to work a 72 hour work week just to pay your rent and utilities. Rent prices are going up in North Orange County and the priciest cities for renting remain Newport Beach, Irvine and Aliso Viejo.

December 2008 was the sixth straight month of new home sales gains and it looks like January 2009 will make a seventh straight month. Single family homes are selling for 42% less than during their “peak period” of June 2007, condo’s are selling for 44% below their March 2006 peak period and Builder prices for new homes are 43% below their February 2007 top selling period.

In the last several months, Orange County home shoppers bought 31% more residences vs the same time period one year ago.

PROS to buy- Financing is low- 5% or below. FHA loans and other loans allow only 3% down on your new home. When you own your home, you make the decisions! Paint, décor, landscaping, you name it. And of course, tax incentives. Talk with a certified mortgage planner for the latest information on interest rates and the BEST loan to fit your needs.

If you don’t think you have a down payment and it is cheaper to rent, it is not! After factoring the costs of security and pet deposits, first and last months rent, you could have the 3% down needed to own your dream home.

If you not registered on our website to start a home search, do so today! You can browse homes 24/7 and be up to date on home values in your area.

We look forward to helping our clients get out of the “renting rut” and into their new home in 2009!

There are a ton of Orange County rentals right now, and I continue to see people trying to get into a lease, but they are going about it the wrong way.  Everyone loses when this happens!  I know what I write below should seem like “common sense”, but right now, apparently not.  Can you tell I’m annoyed?  HELP me HELP YOU, like Jerry McGuire would say!!!!!!

Here are 3 things you should NOT do when you are looking for Orange County rentals:

1.  Partially filling out your application
2.  Working with multiple agents
3.  Stiffing on your appointments

I am going to explain why each is bad for you, and hopefully this madness can stop  

First, its essential that you fill out your lease application COMPLETELY, even if you are putting in n/a.  Your application is the initial impression your landlord will get from you!  You only get one chance to make a good first impression.  Yes, we all understand that you would like to keep some of your life private… but not putting your bank account info or balance on an application makes the owner of the property think you don’t HAVE a bank account.  Would YOU rent to an individual who did not know how to use the bank?  I think not.  The same goes for your references.  If you leave this blank the owner thinks that not one person out there will say a nice word about you.  Would YOU rent to someone like that?  A nicely written application (oh, we need to be able to read your writing too!) that is complete, goes a loooooong way.  Its ok if you don’t look perfect on paper, you need to be honest anyway. If you think the landlord won’t consider you if they know the short details then write a letter of explination and paint us a picture of how we can make this situation work for all involved.

Second, why are you working with multiple agents?  Do you really think you’re going to get better service that way?  If the agent you are working with is lazy and puts you on the back burner then CALL them, be honest in how you feel, and select a Realtor who CARES about you and your situation.  Thinking that 3 or 4 agents out there looking/working for you will get the job done quicker is WRONG.  Agents talk, and they will eventually find out about eachother.  Go ahead and apply that scenario to relationships and dating.  When you date multiple people and aren’t honest about it, what happens when they find out?  Who loses?  That’s right, cheaters never win.  In real estate either.  You may or may not know this, but unless a Realtor closes a deal with you, they do not get paid.  How ethical is it for you to let 4 people work for you knowing 3 of them will not get paid?  You need all the good karma you can get when you are looking for a good rental in OC!!!  Do yourself a favor and build a relationship with ONE, GOOD, Realtor. 

Finally, its important to GO to the APPOINTMENT you made!  Agents are constantly stiffed by internet inquiries.  Craigslist is such a great resource, and it makes us sad that stiffers are giving it a bad reputation.  Its totally ok if you decide you don’t want to see a property.  Agents LIKE it when you can filter out properties from the internet and not have to be carted to each one.  What they do not appreciate is you calling them, telling them you will be there at 7pm Friday night, and then you not showing up and not answering your phone.  These agents are re-arranging their schedules for you, and its sooo disappointing if you don’t call to say you will not be there.  Its common courtesy, everyone should practice it.  Stiffing agents makes them not trust you.  If they don’t trust you they won’t prioritize you.  If you think they don’t prioritize you, you may begin working with multiple agents….do you see how this is a vicious cycle?! 

Any and all comments are encouraged — go ahead and expose your rental horror stories, and the things you’ve learned not to do.   Here at The Weeks Team, we have proven strategies to make your application look good and get you into a rental.  Tell your friends, but only if they aren’t stiffers!!!