Archive for July, 2007
Lenders today are well aware of the situation some homeowners find themselves in and they will work with the Homeowner as long as certain criteria is obtained and presented showing the proper due diligence by both the Homeowner and the Agent.
The lenders concerns are three fold.
1. The Lender wants to see what the Homeowner has agreed to with the purchaser.
This can be a difficult negotiation but the Lender wants to see that the homeowner is not walking away with any cash and that the Buyer has agreed to pay all costs associated with the transaction. The net cash to seller in the purchase agreement must be the amount of the short Pay to the lender. The Lender will also require a Preliminary HUD-1 Statement. If Escrow wont do this, then Agent has to.
2. The Lender wants an accurate picture of what is the property worth in todays market.
Though it is not required, when an agents prepares the Comparative Market Analysis, if an agent is aggressive with this, they would also hire and pay for a pre-appraisal on the property. If there is deferred maintenance or other repair issues on the property, the lender also wants to see a Contractors bid for the repairs. Read the rest of this entry »
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I wrote about Fannie Mae and Freddie Mac Titled Aunt Fannie and Uncle Freddie are Coming To The Rescue€¦, yesterday getting more involved in trying to help with the sub primes crisis. It was as most of my writing is, a positive news item. Late yesterday after I posted that piece, I received notice and an article written that included Mark Zandi comments. Mark Zandi is the chief economist with Moodys .com. The article was titled Subprime could create global crisis
This mornings headlines in Business news around the country contain his projections for the bottoming out of home prices to continue through 2008 with credit problems to remain elevated well into 2009.
Many of my ActiveRain readers compliment me for finding the positive in our markets and usually highlighting the glass half full scenario instead of the opposite viewpoint.
The stock market over the last few days is responding to the Moodys study which Mark based his forecast on. Read the rest of this entry »
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July 24th, 2007 categories: San Diego Real Estate
With all of todays multimedia advertising encouraging homeowners to maximize their loans so they can use their equity for any number of tempting reasons, puts many homeowners in peril.
In my estimation, this sort of marketing is creating more home debt than should ever be considered by most homeowners.
The ads contention that you should always have the largest mortgage possible is so risky, many homeowners in the recent past and those tempted to cash out their equity are making foolish decisions that could haunt them for a very long time.
These marketing ads are very tempting, suggesting that these refinance loans free up money for that past dues vacation, a new family car,buying cash value life insurance and any sundry of other things you have avoided while trying to build the financial security for you and your family.
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Wholesale water prices are on the rise and to help defray the purchasing costs, San Diegans will be facing another 2.9% ($1.40) jump in the average water bill.
The city says that these prices are pass through charges for the increased cost of water and this rate increase does not include any upcoming proposals for new construction to replace and repair much of the 100 year old + piping found through out the city.
San Diego water comes from a variety of sources, the most expensive of which is the Metropolitan Water District in LA. The least expensive is from the Colorado River.
The last big rate increase of 11% this past February, was months before they knew of the increased costs of purchasing the water.
There was some good news in the announcement. You will notice a small rebate of $3.40 per month on the sewer portion of the bill.
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Whatever is on the minds of real estate buyers these days, flashy perks are not getting their attention.
Serious Buyers are looking for a home, a place to live, not a trip to Mexican Riviera or a new plasma tv.
Effective incentives addresses the behind the scenes thinking of todays buyers. Costs associated with the purchase,the cost of the home, the property tax bite and what all this adds up to as a pay out each and every month.
Some incentives that interest Buyers today would be lowering the interest rate in a possible Seller-Buy down,contributing by the Seller in the down payment and assisting in the closing costs gets the most attention, especially from first time Buyers.
When we REALTORS are first taking the listing on the property is the best time to discuss this issue with the Seller. It would be best to include the seller assisted incentives when the property is first new on the market.
Making these adjustments after the property is on the market and the property has already been passed over with no offer may be too late to be considered by the savvy buyers today. Many Buyers have already moved on at that point and the Seller has lost their best advantage of being considered.
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