Tag Archives: agent

San Diego Real Estate Expert, David Tal’s HomeReach Weekly

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Get $3,000 to short sale your home?

April 8, 2010 – In an ongoing effort to stave of foreclosures, the government has been coming up with new ways to help troubled borrowers.  Their newest program may just do the trick!

A short sale is when a troubled borrower owes more on his home than it is actually worth; therefore, he can’t even sell it, but rather is forced to foreclose.  Short sales help the borrower sell the home, once approved by the lender to accept a short payoff.  Lenders like this method because it saves them tens of thousands of dollars in most cases to avoid the foreclosure process and sell it while it’s in a better condition.

Tragically, only a small number of homeowners have been approved for a short sale by their lenders, and the small percentage of people who were approved had to wait for a 6-9 month short sale process.  In many cases, they lost their homes to foreclosure during this tedious and time straining attempt.

On April 5th, the government enacted the new Home Affordable Foreclosure Alternatives program, known as HAFA.  Under this new legislation, borrowers will receive $3,000 to relocate.  Short sale servicers will earn $1,500 for handling the transaction.  The holders of the mortgages, or investors, will receive $2,000 for participating and helping to share proceeds with any secondary lien holders.

Lenders that participate must make it clear to the homeowners as to what market price they will be willing to accept, and they must approve offers that meet the guidelines within 10 days.

There is no doubt this program will help thousands of people, and speed up the short sale process.  In many market areas, it’s been estimated that up to 2/3 of all transactions this year will be from short sales.  A foreclosure does twice as much damage to your credit score than a short sale, so homeowners should really consider this option before they just walk away from their homes.

Consult your local agent to discuss your options and alternatives to foreclosure!

Visit us online at HomeReach.com to view all San Diego homes for sale.

The San Diego Business Journal quotes CEO, David Tal

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On March 22, 2010 the San Diego Business Journal wrote an excellent article on the San Diego Real Estate Market. HomeReach CEO and Real Estate expert, David Tal provides valuable commentary in the published article. To read the complete article, click on the following image below.

Real Estate Expert, David Tal’s HomeReach Weekly

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A new $10,000 housing tax credit for CA homebuyers!

March 25, 2010 – Last March in California, a $10,000 tax credit was enacted for homebuyers who purchased new construction homes in an effort to stimulate the housing market and help developers that were stuck with a glut of inventory on their hands.  The state allocated $100,000,000 for the program.  It was a huge success.  It was too popular in fact, because 4 months later, the fund ran out.

A new bill has been introduced in the California State Senate that would reintroduce this tax credit incentive as early as May 1st, coinciding with the end of the Federal first time homebuyers tax credit that ends April 30th.

With resale homes getting absorbed at rapid rates, many buyers are turning to new home sales which can offer great incentives from the developers like credits for upgrades, waiving Home Owner Fees for a given amount of time, major price reductions, and more.  If the state tax credit gets a new lifeline, so will developers of new homes, and homebuyers alike.

Stay tuned for more information on the California State Senate’s $10,000 tax credit for new home sales.

Visit us online at HomeReach.com to view all San Diego homes for sale.

What Type of Dwelling is for you…

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What type of dwelling is right for you? The two general types of residences you can choose from are: a detached single-family home or an attached dwelling known as a condominium or townhouse. The exclusive right of ownership on a detached property covers the entire structure and the land it stands on. What separates you from your neighbors is either a fence or boundary. The exclusive right of ownership for an attached property is confined to the walls, floor, and ceiling of that particular unit. When it comes to the common areas such as parking areas, amenities, and other facilities ownership is shared thru a homeowner’s association that you automatically become a member of after purchasing.

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Things to consider when purchasing either type of these properties are based on your desire. One of the basic differences between these types of properties is the property maintenance. With detached properties you have the freedom of personal creativity over the property. Condo owners have to abide by specific conditions on ownership rights. Tending to a garden, mowing the lawn, and landscaping is a lifestyle some people like. If this isn’t for you, a condo’s homeowner’s association takes care of these duties for you. The trade-off of course is that condo residents have to pay the homeowner association dues which cover maintenance, insurance, and reserves for major renovations. Detached homeowners, on the other hand, need to have the time, energy, and petty cash for home repairs and grounds upkeep.

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The decision to purchase a condo or a single-family house rests on your taste, priorities, budget, and lifestyle preferences. Investing in a dream home, whether it’s a house with a picket fence and a manicured lawn, or a pristine penthouse condominium unit overlooking whatever view comes with purchasing, can indeed be a unique and challenging yet enjoyable experience.

Your HomeReach Certified Agent,

Justin Johnson

619-618-5513

Home Buyer Information Regarding the Tax Credit Programs

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A tax credit of up to $8,000 is available for “First-Time Homebuyers” purchasing a principal residence on or after January 1, 2009 and on or before April 30, 2010.  If you have a binding sales contract signed by April 30, 2010 and the purchase is complete by June 30, 2010 the transaction will still qualify for the tax credit. A first time homebuyer is defined as one who has not owned a home at all for the last 3 years. If married, this applies to both spouses. The IRS does allow unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first time homebuyer. (IRS Notice 2009-12)

A different tax credit is offered of up to $6500 for “Repeat Homebuyers” who have owned a home for 5 consecutive years out of the last 8 years. This tax credit is only offered for a window of months to purchase a home this year and the beginning of 2010. It will apply to houses sold after November 6, 2009 and on or before April 30, 2010. Again, if a sales contract is signed by April 30, 2010 and the transaction is complete by June 30, 2010 the tax credit will still qualify.  Home sales above $800,000 are not eligible for either of these tax credits.

Income limitations are also in place to qualify for these tax credits.  From Jan 1, 2009 until November 6, 2009, income limits are $75,000 for individuals and $150,000 for married couples filing jointly. After November 6, 2009 it changed to $125,000 for individuals and $225,000 for married couples filing jointly. Please note that married couples are not eligible to qualify for the first time homebuyer tax credit if one of the spouses previously owned a home. They may, however, qualify for the repeat homebuyer’s tax credit. Also, to keep from having to repay these tax credits, homeowners are required not to sell their home for at least three years after purchase.

Lastly, to claim your credit, you must submit a copy of the HUD-1 settlement statement and the IRS form 5405 with your income tax returns. Those whose transactions close in 2010 can claim their credit by filing an amended 2009 tax return. I hope this information helps. If you have additional questions, give me a call. I’d be happy to help you with any and all of your real estate needs.

Your HomeReach.com Specialized Agent,

Lisa Morgan

(619)410-7002

The “Upside” for the “Upside Down” – Short Sales!

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If you bought a house between the years of 2005 and 2007, you are probably very familiar with the words “negative equity”. That means your home is “upside down” in its value, and you owe more on your home than it is worth.  The outlook ahead can seem very grim.  It’s heartbreaking to see the house next door being purchased for $200K less than what you paid.  You probably say to yourself, “What’s the point?” I know, I know… the point was to provide your family with a stable home, a nice neighborhood, good schools, and a place to grow old. But deep down I’m sure some of you were thinking, “This house could be worth so much more in the future and possibly help pay for our kids’ college, or go towards our retirement”.

Don’t worry, you’re not alone, and many people feel the same exact way as you do. Some are dealing with their current housing situation and simply accept the fact that their house is underwater and are willing to continue paying their monthly mortgage payment. Others are finding it very difficult. Maybe they have lost a job, or they feel that it doesn’t make sense financially to continue to pay on a home that could take practically the rest of their loan term to get their equity back. This is when they look to the short sale approach to “start over” in a couple of years. This is the “upside”. The short sale option will allow you to sell your home at a loss without having to be obligated to pay for that particular financial loss.  Thanks to the Mortgage Debt Relief Act of 2007, taxpayers can exclude that debt as generated income on their tax returns. You can go to www.IRS.Gov to read more about it.   This act, however, will only be in effect until the end of 2012.

How a short sale affects you: You will not be able to purchase a new home for a minimum of 2 years. A foreclosure will eliminate buying a home for 4. Which sounds better? I think 2 years of renting in exchange for eliminating an extremely high debt with no equity would be my answer. Worried about credit? A short sale will show up on your credit report as a “settled debt” vs. a big fat FORECLOSURE. It’s true, I’ve seen how they both look on a report. The FORECLOSURE does not look pretty. Plus, wouldn’t you want to at least have the opportunity to buy again sooner than later? Yes, it can seem very grim… but there are ways to salvage the situation and put yourself back into a position where you can again purchase a home and not worry about negative equity.  Not worry about an increasing mortgage payment.  If you feel you are underwater and simply can’t swim up, you probably can’t. You don’t have to go through this alone!  Call me, and we can discuss your options for planning a better future for yourself and your family.

Your HomeReach.com Specialized Agent,

Lisa Morgan

(619)410-7002

San Diego Real Estate Expert, David Tal’s HomeReach Weekly

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Tips for Buying Foreclosures

February 11, 2010 – San Diego Foreclosures are at the top of every homebuyer’s wish list.  With distressed banks trying to unload their assets at record rates, they have drastically cut home prices and put them on the market to sell, and to sell fast!  The longer banks hold on to these assets, the more it costs them in upkeep, attorney fees, property taxes, insurance, utilities, etc.

Here are some helpful tips to buying foreclosures in San Diego’s recovering housing market.

1. Be patient!

With so many buyer’s competing for the best foreclosure bank owned bargains, many of these deals are getting bid up so high that they are no longer the bargain they appeared to be.  It’s best to stick to a price you feel comfortable with and don’t let your emotions carry you into uncomfortable territory.  There are more foreclosures on the way, and the right one for you may hit the market tomorrow or next week!

2. Get pre-approved with the same bank that owns the home

If you’re making an offer on a home owned by Wells Fargo, they may favor your offer over others if you pre-approve with them directly as well.  This is a way for the seller to minimize the risk that you’ll come across third party lender issues, and they may be able to make some gains working on your loan as well.  You can never be forced to use a certain lender so you can always change your mind and choose another lender.

3. Don’t be afraid of a fixer upper

Most banks sell their homes in “as-is” condition.  They rarely want to get into the business of making repairs and other accommodations, as it’s not in their best interest to do so.  That being said, they price the homes accordingly.  Since fixer upper homes usually take more imagination and capital, there are fewer buyers competing for them, so you also have a better chance of getting your offer accepted.  In most cases, the homes are priced far lower than it would take to bring them up to speed again.  Unfortunately, many homeowners who are foreclosed on leave their homes in less than good conditions, and sometimes they trash the home.  A buyer that can look beyond this can get a great deal by investing some time and effort in their new home.

4. Wait for the home to sit for a few days before making an offer

As I’m sure you’ve already noticed if you’re making offers in today’s market, foreclosures tend to have multiple offers within days of being listed.  This is because the buying frenzy has created an environment of desperation.  Some homebuyers have been trying for months to get their offers accepted, so now their strategy has turned to making offers on many more properties, many times without even looking at the homes in person yet.  Tell your agent to talk to the listing agent or seller and try to get a good read of what the other offers may be like.  By waiting a few days for the bulk of the offers to come in, you may get a competitive advantage by waiting for other buyers to show their cards first.

5. Preview homes with a contractor

Having a good contractor by your side when you’re touring properties can be very helpful.  A contractor can tell you how big or small a problem is.  Many times issues may appear more complex than they really are. Conversely, many times what may appear to be a minor issue may actually involve a lot more than expected.  A good agent can help you leverage this information when you’re writing offers.

6. Keep your offers simple and clean

With so many offers on the table, banks much rather go with a simpler contract that doesn’t ask for dozens of little items or ones with lengthy contingency periods, complex addendums, and inconsistent requests.  For the banks it’s all about the bottom line and a quick closing.  Having an agent that’s well versed and experienced in bank owned foreclosures, also known as REOs, is crucial when you’re putting your offer together. Good agents know what a clean offer looks like, while at the same time protecting your interests.

Rise of Interest Rates

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The low interest rates of 2009 are projected to rise this year. Historically low interest rates in 2009 were due to the Federal Reserve purchasing debt and mortgage back-up securities from Fannie Mae and Freddie Mac. The reason for this was to lower interest rates and spark people into home buying.

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The spark is still burning on with the first-time homebuyer tax credit which is soon to expire in April. As long as you’re in a binding contract by April 30, 2010 and close Escrow by July1, 2010 you are still eligible. Look into your loan options and see what is available. Don’t forget about possibly going with a FHA loan requiring 3.5% as a down payment. With lenders now securing loans they are asking for higher down payments, which results in lower interest rates. The days of “no down payments” are a thing of the past.

Looking for a property in North Park contact…

Justin Johnson

619-618-5513

Fallbrook Homes Rock!

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bonnie-blogFallbrook offers amazing values, tucked away in some of the most breathtaking locations, including hilltops, lakefronts and golf resorts! Take a look at these gems:

Resort Living: Two bedroom condo with granite countertops, tile flooring, community pool and spa, tennis and golf. Priced under $190k. Click here to View.

Just listed: Three bedroom, four bath hilltop home, just under 4000 square feet, only four years old, with panoramic views. Under $700k. Click here to View.

Bank Owned: Three bedroom, three bath, lake view home, built in 2000. $299K. Click here to View.

Six bedroom hilltop home on three acres, just under 6000 square feet, only four years old. You won’t believe you can buy this “million-dollar” property at this kind of price. Click here to View.

Still not your cup of tea? Click here to search more Fallbrook Foreclosures.

Looking for a different type of home in Fallbrook, Carlsbad, Encinitas, or Leucadia?

Check with our area specialist,

Bonnie Maffei

760-730-2191

bonniemaffei@homereach.com