In spite of doom and gloom push by many, there are many people that do want to buy a home. For most, the biggest challenge to buying a home in the greater Silicon Valley is finding the funds for a down payment. Even with FHA availability requiring only 3.5% down may not be an option for very many come September 2011 when loan limits are potentially reduced back to $417,000. Today I had the opportunity to attend an all day continuing education course on the availability of programs that, in a variety of ways, can help home buyers get started on the purchase of their new home. First up, the Housing Trust of Silicon Valley. A non-profit which has been around 10 years and was formatted by leaders of the community. The objective was to assist families and individuals to purchase homes. In January 2011, the organization received $4 million dollars to assist over the next two years. There are several programs offered from this group. The Purchase Assistance Loan (PAL Program) related to Neighborhood Stabilization Program consensus neighborhoods. This program allows buyers to purchase foreclosed homes in San Jose. Maximum gross income of every individual in the household (over 18 years of age) begins at $86,950 for a single person up to a $163,950 for 8 individuals. Home buyer do not have to be a 1st time home buyer but must intend to occupy the home. Borrower must also complete 8 hours of HUD related education. If the home owner moves out and rents the property loan must be repaid. This is a deferred loan of 20% of the purchase price up to $50,000 at 0% interest rate. For more information about this program go to the web site or contact me. Other programs from this organization include the Closing…
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If you are getting ready to move to a different home, you need to be aware of scams that happen every day in the moving industry.
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The housing market in Santa Clara County is very competitive. With home loan interest rates below 5% and at 40 year lows, the housing market near or at bottom, many buyers are making their move and shopping for deals. With that pent up demand comes multiple offers to purchase homes. Particularly when home buyers are looking for homes in good school districts, away from busy streets, with updated kitchens and baths. Competition is fierce. If you are a buyer and are getting a little frustrated on missing the phone call that your offer was accepted, take a look at these possible options for improving your offer. 1.) Offer the highest price and have all cash. Yes, “cash is king” works many times. However, recognize cash from an investor or non-occupant is considered weaker than all cash from a buyer who will actually occupy the home. All cash investors don’t hesitate to cancel a purchase contract on a home if they see something shiny on the next street over or find out something through investigations that keep the numbers from making sense on the investment. 2.) Offer the highest price with no loan or appraisal contingency. Scary to most buyers as they are not sure of what current appraisals will value the home and yet depend on appraisers to confirm their loan. If you set up the purchase based on the value you believe is accurate, then the appraisal shouldn’t be far off. Leaving out this variable can make a huge difference in the perception of your offer. If you have over shot the value, you will make up the difference in cash to secure your loan. If you can’t get the loan because you can’t support the difference, you risk losing your deposit. Your lender will still require an appraisal….
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I have been tracking short sales and REOs (foreclosures) in the San Jose area since June 2007. I can tell you, consistently, short sales have represented about 30% of active listings and foreclosures have represented about 10-15% of the active listings. I show homes that are listed as short sales. I hear there are agents that won’t show short sales. Not sure how they do that. I started working on the numbers to find out how many short sales there are, how long they have been on the market, how many are pending, how long they have been pending, how many are vacant, and how those numbers are different between single family homes verses condos and town homes. Wow. There is no doubt there are a lot of home owners in trouble. There is no doubt the banks have inventory that they have not sent back to the public consumer. There is no doubt you can complete a web search on shadow inventory and find a ton of articles about the reality of its existence and whether or not these homes will come to market. More importantly, when will they come to market? Who knows? Maybe some high paid executive of the in the asset manager kingdom knows. They aren’t telling. But in San Jose, foreclosures are the smaller part of the market. I am more interested in the 1/3 of the market called short sales. These are the challenges of real life sellers, buyers, and agents. As of today, February 15, 2011, there are 777 active short sales in San Jose. Of that 777 homes, 81 have been on and off the market for over 1 year (10%) and 17 have been on and off the market for over 2 years (2%). Of the total listings pending sale,…
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There are some great deals with foreclosures this weekend in San Jose. Lots of open houses to visit and a chance to get into a home while interest rates are still low. Remember, to purchase an REO home, you must be pre-approved, have proof of funds to close, and be ready to purchase AS IS. If you have questions about how to purchase a foreclosure (REO, bank owned) home, contact me. I offer a no-obligation consultation on the pros and cons of purchasing a foreclosure. Tags: Buyers’ Tips, Market Information, bank owned, foreclosure, foreclosures, how to, interest rates, open houses, REO, San Jose
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If you are not planning on watching the Super Bowl, here are some potential deals in San Jose this weekend. Here is a list of bank owned homes that are for sale in San Jose with open houses today, Sunday. Contact me if you would like copies of comparable sales for any of these homes. Tags: Buyers’ Tips, Market Information, bank owned, foreclosure, open houses, real estate, REO, san jose
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Every state has different closing practices and even within a state, regional differences can occur. In Northern California, a title company many times will double as a title and escrow company for the participants in a real estate exchange. The title company’s job is to research and supply clean title to the buyer. This normally includes providing a title insurance policy protecting the seller, buyer, buyer’s lender or all against any “clouds” on the title. Clouds on the title can be related to transfer of ownership unclear, boundaries, and liens against the property that are unresolved. The title normally includes research related to the chain of title that demonstrates all the transfers of ownership from the originating owner to the current owner. A title search is normally displayed in a preliminary title report which provides all parties involved a summary of the ownership and any liens against the property. Realize the preliminary title report is only assumed accurate for the day it was dated. Obviously, the next day, a new lien or issue can occur on the title. This is particular importance for short sales and foreclosure properties. It is not uncommon to see a garbage lien or HOA (home owners’ association) lien come up at the last minute. That is why it is important the real estate agent and/or loan officer update the preliminary title report at the time of signing off closing documents. Tags: Buyers’ Tips, Sellers’ Tips, escrow, FHA, loan approval, real estate, santa clara, Santa Clara County, Title Insurance
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Here is a list of single family homes, condominiums, and townhomes that are bank owned (REO) properties available for sale and open Sunday January 30th, 2011. Contact me if you would like comparable market information for any of these homes. Click here for PDF of listings. Tags: Buyers’ Tips, Market Information
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Simple answer: Do what you said you would do when you signed the purchase contract. I follow and participate on many public forums in regard to real estate (like TRULIA, ZILLOW, YAHOO, and ALLEXPERTS) and more and more I see questions from buyers and sellers about who deserves the earnest money deposit on a home purchase when things do not go according to plan. There are several reasons why this has become a big issue in this housing market. First, it seems like a long time ago but it was really only about three years ago when deposits were merely numbers on a page. If a buyer canceled a purchase contract, many sellers did not want to pick up the rope and play tug-o-war over the deposit because they would simply be wasting time while new buyers were waiting at the door ready to write a higher offer. It also meant sellers did not have much patience for late contingency releases and were quick to issue a notice to perform to any buyer that could not stay on time with their purchase. The pressure was on the buyer to keep up or lose the deal. That was also a time period when FHA loans did not exist in Northern California and unless you had a real loser for a loan officer, most buyers could obtain loan approvals quickly and close the deal within 30 days. Not so much anymore, underwriters are actually asking to see the proof of all those items written on a loan application and the scrutiny of facts has become more serious than a game of master chess. FHA loans, in many ways, have saved our local housing market. With nearly 25% of all loans completed in 2009 FHA loans and some predict that number is around…
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This housing market is tough. No doubt about it. In speaking with a broker friend of mine he stated, ” What other profession takes a direct pay cut based on the economy? If the market drops 40% , so does my pay check.” Although the reality of that stinks, I can deal with that fact. What I am having a hard time dealing with is the lack of honesty on all parties involved in a real estate transaction. Many have talked about the old saying, “Buyers are liars and sellers are too.”. But let me just say this market is pushing the limits of dishonesty. Desperation is clear on so many fronts of the real estate transaction that quite honestly, (pun intended) it is really beginning to irritate me. If you are a buyer, do not lie on your loan application. If you can not afford a house without deceiving the lender, simply do not buy a house. I recently had a situation where the buyer forgot they had a bankruptcy on their credit history. This was not, “I forgot to mention it.” because the loan application has a specific question about whether or not the applicant has ever had a bankruptcy. Tags: Buyers’ Tips, featured, Market Information, Sellers’ Tips, buying a home, credit reports, inspections, loan approval, selling a home
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I do not do home loans. I could, but I don’t. I do know how to find the right house for my clients, negotiate the offer, and close the deal. That is my specialty. I leave the loan process to professionals that live and breathe loans everyday. Professionals like Gabe Bodner with RPM Mortgage in Cambell. Gabe and I have worked together on some easy purchases and some not so easy purchases. As a team, we have never lost a deal. One of the most common challenges comes into play when a client has a pre-approval but decides on the day they write the offer to “shop” the interest rate on their loan. Don’t get me wrong, anyone in the industry supports the right and the reason for a borrower trying to get the lowest rate. We understand that 30 years of interest is an amazing number. However, trying to get the lowest interest rate when rates change daily (almost every few hours) is a very elusive goal and can end up costing the buyer more money and stress in the long run. Loan rate shopping is more challenging today than it was even a year ago. With the new RESPA (Real Estate Settlement Procedures Act) of 2010, comes some very specific rules on how fees are disclosed to the borrower. This is a good thing, but the with consumer safeguards the typical 30-day close of escrow can be very, very tight. Many times there is a cost to being late. Loan locks may need to be extended or sellers may charge a per diem late fee if the contract is not closed on time. These changes are not necessarily the easiest to work with and many buyers don’t completely understand why it matters. In a competitive market, (high demand,…
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My first home had dry wood termites. When I bought my second home, I bought a brick home thinking I would not have to worry about termites. I found out I had subterranean termites. I moved to California and realized most of the houses were built upon the fertile soil where orchards once lived. Where there were orchards, there were termites so it won’t surprise you to hear that many homes in the Bay Area suffer from wood destroying pest. There are things a home owner can do to help reduce the chance of having their home infested by termites and the like. The five most common maintenance issues that are neon welcome signs to pest are: 1.) Sprinklers spraying against the wood siding of a home. This creates a nice moist dinner of wood for termites to take hold. 2.) Water leaks around toilets and sinks. Wet wood = meal for wood hungry pest. 3.) Foliage and trees close to the house or laying on the roof. A perfect gateway for pest to enter roof rafters. 4.) Storing wood or paper products in or around the wood exterior of the home or garage. 5.) Improper drainage from gutters that allow for water to stand or collect underneath the home. The hungry swarm of wood destroying pest can eat at a home for years and cause thousands of dollars in damage. Some surveys indicate termites cause up to $2 billion dollars in damage annually in the United States. The map shows which parts of the country are more at risk for termite infestation. Will McCoy is a pest inspector with The Terminators. A locally owned and operated family business here in San Jose that I have worked with since I bought my first house in California nearly 18 years ago….
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