Maybe you have been considering buying a home but are concerned that your credit scores are less than steller. When you apply for a loan, you credit scores along with your debt to income ratios are going to be big factors. Here are some tips that can help you improve your credit scores and help you in advance.
1. Run your own credit report so you know in advance what the lender is going to find. This will give you the opportunity to correct any mistakes and possibly remedy any derrogatory items.
2. Don't charge your credit cards to the maximum.
3. Pay down the credit cards to improve your debt to income ratio.
4. Pay your bills on time, all the time. Show your credit worthiness.
5. Don't play the shell game by transfering balances from one card to another. This can lower your scores.
6. Don't open new credit card accounts before applying for a loan. Having too much credit available to use can scare the lenders.
7. Don't charge big ticket items for your new house when you are in escrow. This can throw off your debt to income ratio. The lenders may run your credit again right before you close escrow. Wait until you close to by the new furniture!
Wednesday, November 25, 2009
Tuesday, November 17, 2009
Short Sale to Avoid Foreclosure
Well, this morning I got a disappointing call, a friend of mine let me know that they had lost their home to foreclosure. To be honest I was a little shocked. I had no idea that they were having difficulties. I wish they had called me before, when they first found themselves getting into trouble. I could have helped. They could have done a Short Sale. I am not sure why they didn't call. My gut feeling is they were embarrassed, but there is nothing to be embarrassed about and chances are I am going to find out when the property is listed as an REO anyway. There are a lot of good, hardworking people who are falling victim to the economy. I urge you if you start to feel yourself getting in over your head to call me. I will not judge! Do not put your head in the sand and hope it goes away. If you wait too long, I might not be able to stop the foreclosure. Be proactive and call for help as soon as you can, that is what I am here for.
Below is a link that will compare the tax and credit consequences of a short sale vs. a foreclosure. You will also see the wait time to repurchase after a short sale is considerably shorter than with a foreclosure. Please take the time to read the information and see if a short sale is right for you. Of course check with your own tax/legal professionals. If you need more information or you are ready to start the process, please give me a call before it's too late.
http://homebuying.about.com/od/foreclosures/f/072509_Short-Sale-vs-Foreclosure.htm
Below is a link that will compare the tax and credit consequences of a short sale vs. a foreclosure. You will also see the wait time to repurchase after a short sale is considerably shorter than with a foreclosure. Please take the time to read the information and see if a short sale is right for you. Of course check with your own tax/legal professionals. If you need more information or you are ready to start the process, please give me a call before it's too late.
http://homebuying.about.com/od/foreclosures/f/072509_Short-Sale-vs-Foreclosure.htm
Fire and Smoke Visable
Cuyamaca Rancho State Park, in cooperation with CAL FIRE, will conduct a controlled burn on Middle Peak north of Cuyamaca Peak tomorrow (11/18/09). Because of the high location, the smoke and flames will be visible from many areas. Residents of Ramona, even though they are miles away, will have a clear view of the peak. The burn will begin about 9 a.m. and is scheduled to end by 4 p.m.. There are a lot of dead trees and brush in the area so the smoke may be visable for many days. But there will be continued patrol of the fire area for a number of days after the burn.
Friday, November 13, 2009
Tips For Buying in Today's Market
If you are a frustrated buyer who is getting outbid and losing out on homes in your price range, I offer these tips to increase your chances of getting the home you desire instead of losing out.
1. Get prequalified for a mortgage! Sellers will not consider your offer without one. You need to know how much you qualify for.
2. Be one your toes! You need to stay in close contact with me. I will set up an automatic search so you recieve an email as soon as a new property comes on the market. If it is something you are interested in, don't wait to call me. Let me know immediately so we can get out and take a look before it is gone.
3. Keep your eyes open! You may be on your way to the grocery store and you see a new sign in the neighborhood. Jot down the number on the sign and call me. This could be a brand new listing that hasn't been entered into the system or a home for sale by owner. You will not hurt my feelings, just call me and I will get all the information about the property.
4. Be competitive! When you do find a home and submit an offer if it is a good deal at list price don't try to lowball. At the same time, there are times when you do not want to submit your highest initially. It will depend on the property and the circumstances. But you must submit a competitive bid.
5. Be Ready! It is well worth doing your homework in advance of actually finding the home. Research the neighborhood, schools, current market trends in advance. That way when you find the home you think is for you, you will be ready to act. Indecisiveness has cost many buyers the homes of their dreams.
6. Terms can be key! You know that price is a huge factor determining if you will get the home but there are other terms that can sweeten or sour a deal. Length of escrow, type of loan, contingency timeframes, selling a current home are all things to be considered when selling a home.
7. Sell First! If you have a current home to sell before you can buy it is important to sell that home first. I am not suggesting you be homeless while you search for a new home but your current home should at least be on the market and at best in escrow. When you list your home with me I put in place contingencies to protect you. Asking a seller to accept your offer on a new home when you haven't even started the process of selling the current home is not going to get you very far.
8. Due Diligence! Do not get yourself so caught up in getting an offer accepted that you get careless. Don't buy something you are not going to be happy with, and make sure you do your inspections!
1. Get prequalified for a mortgage! Sellers will not consider your offer without one. You need to know how much you qualify for.
2. Be one your toes! You need to stay in close contact with me. I will set up an automatic search so you recieve an email as soon as a new property comes on the market. If it is something you are interested in, don't wait to call me. Let me know immediately so we can get out and take a look before it is gone.
3. Keep your eyes open! You may be on your way to the grocery store and you see a new sign in the neighborhood. Jot down the number on the sign and call me. This could be a brand new listing that hasn't been entered into the system or a home for sale by owner. You will not hurt my feelings, just call me and I will get all the information about the property.
4. Be competitive! When you do find a home and submit an offer if it is a good deal at list price don't try to lowball. At the same time, there are times when you do not want to submit your highest initially. It will depend on the property and the circumstances. But you must submit a competitive bid.
5. Be Ready! It is well worth doing your homework in advance of actually finding the home. Research the neighborhood, schools, current market trends in advance. That way when you find the home you think is for you, you will be ready to act. Indecisiveness has cost many buyers the homes of their dreams.
6. Terms can be key! You know that price is a huge factor determining if you will get the home but there are other terms that can sweeten or sour a deal. Length of escrow, type of loan, contingency timeframes, selling a current home are all things to be considered when selling a home.
7. Sell First! If you have a current home to sell before you can buy it is important to sell that home first. I am not suggesting you be homeless while you search for a new home but your current home should at least be on the market and at best in escrow. When you list your home with me I put in place contingencies to protect you. Asking a seller to accept your offer on a new home when you haven't even started the process of selling the current home is not going to get you very far.
8. Due Diligence! Do not get yourself so caught up in getting an offer accepted that you get careless. Don't buy something you are not going to be happy with, and make sure you do your inspections!
Friday, November 6, 2009
Wednesday, November 4, 2009
El Cajon Home Sales - October 09
Here are the market stats for the 3 zip codes in El Cajon for October 09. This is for single family detached homes.
92020
Currently 62 Active listings ranging from $135,000 - $2.4 million
57 homes are pending, currently in escrow
25 homes sold in October ranging from $195,000-$560,000
92019
Currently 54 Active listings ranging from $245,000-$2,999,999
46 homes are pending and currently in escrow
27 homes sold in October ranging from $130,000-$635,000
92021
Currently 89 Active listings ranging from $100,000-$1,795,000
69 homes are pending and currently in escrow
34 homes sold in October ranging from $119,900-$1,950,000
Let me know if there is another zip code you would like me to check. Have a good month.
92020
Currently 62 Active listings ranging from $135,000 - $2.4 million
57 homes are pending, currently in escrow
25 homes sold in October ranging from $195,000-$560,000
92019
Currently 54 Active listings ranging from $245,000-$2,999,999
46 homes are pending and currently in escrow
27 homes sold in October ranging from $130,000-$635,000
92021
Currently 89 Active listings ranging from $100,000-$1,795,000
69 homes are pending and currently in escrow
34 homes sold in October ranging from $119,900-$1,950,000
Let me know if there is another zip code you would like me to check. Have a good month.
Monday, November 2, 2009
Jamul Home Sales Report - October 2009
Here are the active, pending and sold listings in Jamul, for the month of October.
There are currently 40 active listings, ranging from $160,826 - $1,995,000
There are currently 13 pending sales in escrow, ranging from $165,000-$777,900
For the month of October 6 homes sold, ranging from $255,000-$719,000
The average market time for homes that sold was 44 days.
There are currently 40 active listings, ranging from $160,826 - $1,995,000
There are currently 13 pending sales in escrow, ranging from $165,000-$777,900
For the month of October 6 homes sold, ranging from $255,000-$719,000
The average market time for homes that sold was 44 days.
Thursday, October 29, 2009
Wednesday, October 28, 2009
Top Reasons Short Sales Fail
When the listing agent and the seller start the process of a short sale, there is no guarantee that the bank will accept the short sale. Simply because the property is listed on the MLS does not mean the bank is willing to do a short sale or that the offer will be accepted. So what are the reasons short sales do not go through?
First you need to know what a short sale is. A short sale is when the lender (bank) who holds the mortgage agrees to accept less than what is owed. Complicating matters more is that there may both a 1st and 2nd mortgage, in which both lenders must agree to the short sale. While they are called short sales because banks are agreeing to accept something "short" of the full amount, they are not short in terms of time. The process can be very lengthy.
Why Banks Reject Short Sales
Offer Price is Too Low
The price at which a property is listed in no way indicates what the bank will accept. Many agents list the property very low in order to get multiple offers, quickly. Once the offer is under review by the bank they will do their own appraisal or BPO to determine the value of the property. If they feel the offer price is too far off the mark, they will reject the short sale offer.
Even if the offer price is close to the appraised value, if the bank feels it would make more by foreclosing on the property they will reject the offer.
Incomplete Packet
When doing a short sale, the seller will be required to submit a financial packet. Typical items included are W-2 and tax returns for last 2 years, paystubs for last couple of months, bank statement for last 2-3 months, and a financial worksheet showing income versus expenses. The banks will not review incomplete packets and they are notorious for losing paperwork. It must be complete with the account numbers on all items. If the packet is not complete, the short sale could be rejected.
There is NO Hardship
To be included in the packet mentioned above is the hardship letter. The banks require a reason for considering a short sale. They will not just write off the debt because the seller decides they don't want to live there anymore. There needs to be a hardship and a letter explaining why the seller is requesting a short sale. If there is no hardship for the seller, the short sale can be rejected.
Seller Has Assets
Even if there is a hardship such as a job loss or other factor, if the seller has other assets the bank may want those sold or money brought in by the seller. If the seller does not agree the lender can reject the short sale.
Lender Sold the Loan
Short sales can take a long time and often times one department of the bank doesn't know what the other is doing. There are often times when you are in negoitations with the bank's short sale department and suddenly find out the loan has been sold and they no longer hold the asset or have the authority to approve the short sale. Since they do not own it anymore, they can not approve a short sale on it.
And finally, sometimes there is no reason why. All we hear is that "investors did not approve".
First you need to know what a short sale is. A short sale is when the lender (bank) who holds the mortgage agrees to accept less than what is owed. Complicating matters more is that there may both a 1st and 2nd mortgage, in which both lenders must agree to the short sale. While they are called short sales because banks are agreeing to accept something "short" of the full amount, they are not short in terms of time. The process can be very lengthy.
Why Banks Reject Short Sales
Offer Price is Too Low
The price at which a property is listed in no way indicates what the bank will accept. Many agents list the property very low in order to get multiple offers, quickly. Once the offer is under review by the bank they will do their own appraisal or BPO to determine the value of the property. If they feel the offer price is too far off the mark, they will reject the short sale offer.
Even if the offer price is close to the appraised value, if the bank feels it would make more by foreclosing on the property they will reject the offer.
Incomplete Packet
When doing a short sale, the seller will be required to submit a financial packet. Typical items included are W-2 and tax returns for last 2 years, paystubs for last couple of months, bank statement for last 2-3 months, and a financial worksheet showing income versus expenses. The banks will not review incomplete packets and they are notorious for losing paperwork. It must be complete with the account numbers on all items. If the packet is not complete, the short sale could be rejected.
There is NO Hardship
To be included in the packet mentioned above is the hardship letter. The banks require a reason for considering a short sale. They will not just write off the debt because the seller decides they don't want to live there anymore. There needs to be a hardship and a letter explaining why the seller is requesting a short sale. If there is no hardship for the seller, the short sale can be rejected.
Seller Has Assets
Even if there is a hardship such as a job loss or other factor, if the seller has other assets the bank may want those sold or money brought in by the seller. If the seller does not agree the lender can reject the short sale.
Lender Sold the Loan
Short sales can take a long time and often times one department of the bank doesn't know what the other is doing. There are often times when you are in negoitations with the bank's short sale department and suddenly find out the loan has been sold and they no longer hold the asset or have the authority to approve the short sale. Since they do not own it anymore, they can not approve a short sale on it.
And finally, sometimes there is no reason why. All we hear is that "investors did not approve".
Friday, October 23, 2009
Huge Yard Sale (Jamul)
Huge Yard Sale (Jamul)
Reply to: sale-caraj-1433069309@craigslist.org [Errors when replying to ads?]
Saturday 10/24/09 only, 8 to 2. Years of accumulation! Here a a few of the items:
Kenmore Ultra-wash dishwasher model 665 series purchased new from Sears 1/03 for 469.99; white; rarely used
GE gas range model JGBP40WEC4WW XL44 self-cleaning; set up for propane; purchase new from Sears 1/03 fro 699.99; white
GE over the range microwave oven/vent model JVM1860WF001; purchased new from Sear 1/03 for 399.99
Maytag Dryer set up for propane but easily adaptable to gas; good condition, off-white
Stereo Speakers and equipment
LV lights
Landscape tools, hand tools, power tools
Baby stuff
Children’s party goods new in packages
Household items
Furniture: 2 oak dressers, one antique
Color TVs (Magnavox) working
Picture frames and pictures
VW Thing parts: hard-top, seats, disc brakes, odds and ends
Christmas stuff
ETC.
Location:
3123 Peg Leg Mine Rd. Jamul.
Directions:
Take 94 to Lyons Valley Road, turn right, go approximately 1 mile to Peg Leg Mine Rd., turn right. We are at the end of the road. Come out and see beautiful Jamul!
Location: Jamul
3123 Peg Leg Mine Rd
Jamul, CA
Post date: 10/22 01:13 PM
Sale date: 10/24/09
Source: Craigslist
Reply to: sale-caraj-1433069309@craigslist.org [Errors when replying to ads?]
Saturday 10/24/09 only, 8 to 2. Years of accumulation! Here a a few of the items:
Kenmore Ultra-wash dishwasher model 665 series purchased new from Sears 1/03 for 469.99; white; rarely used
GE gas range model JGBP40WEC4WW XL44 self-cleaning; set up for propane; purchase new from Sears 1/03 fro 699.99; white
GE over the range microwave oven/vent model JVM1860WF001; purchased new from Sear 1/03 for 399.99
Maytag Dryer set up for propane but easily adaptable to gas; good condition, off-white
Stereo Speakers and equipment
LV lights
Landscape tools, hand tools, power tools
Baby stuff
Children’s party goods new in packages
Household items
Furniture: 2 oak dressers, one antique
Color TVs (Magnavox) working
Picture frames and pictures
VW Thing parts: hard-top, seats, disc brakes, odds and ends
Christmas stuff
ETC.
Location:
3123 Peg Leg Mine Rd. Jamul.
Directions:
Take 94 to Lyons Valley Road, turn right, go approximately 1 mile to Peg Leg Mine Rd., turn right. We are at the end of the road. Come out and see beautiful Jamul!
Location: Jamul
3123 Peg Leg Mine Rd
Jamul, CA
Post date: 10/22 01:13 PM
Sale date: 10/24/09
Source: Craigslist
Thursday, October 22, 2009
Twitter Tool For Real Estate Listings
I found this tool that can help real estate agents post their real estate listings to twitter. I thought I would share. Go to http://www.tweetlister.com/ and let me know what you think!
Wednesday, October 21, 2009
VA Buyers and Tax Bill
Anyone who recently purchased a house using VA may have received or will receive shortly a tax bill. This usually causes some concern especially for first-timers. See, VA requires an impound account for taxes and insurance so to receive a bill makes one think something has gone wrong. Well, you can breathe a sigh of relief. If you look closely at the bill it should say "copy" on it and if you read the insert it will explain that payment from the buyer is not expected. This is simply a copy for your records. Now if there is no indication that the "bill" you received is a copy, your best bet is to call your mortgage company and confirm they have received the bill.
If you receive a supplemental tax bill, this you will have to pay. In escrow taxes are prorated and paid at the seller's tax rate; if you purchased the home at a higher rate you will owe the difference for the months you owned the property.
I hope this helps with some of the confusion, if you are still unsure, please feel free to give me a call.
If you receive a supplemental tax bill, this you will have to pay. In escrow taxes are prorated and paid at the seller's tax rate; if you purchased the home at a higher rate you will owe the difference for the months you owned the property.
I hope this helps with some of the confusion, if you are still unsure, please feel free to give me a call.
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