The challenge with being involved in your government is having the time and energy to dig through the information to find the facts. Most of the time, the average citizen (like myself) only reacts to a public policy change when it lands on our doorstep. I have been following the debate regarding Governor Brown’s shutting down of the state’s Redevelopment Agencies. I have attended many functions over the last year where developers swore that this would have a huge impact on their ability to develop homes for “in-fill” areas. Simply put, without government subsidies it would not be cost effective to create new town homes in a transitional neighborhood of San Jose because affordability would be out of reach for the average resident. If you listened to the debates, why should property taxes go to big developers? Pet projects like parking garages in Los Angeles and high rises in San Jose, were considered foolish in a time of economic recession. Makes sense to stop providing subsidies to wealthy builders. Or so it seemed at first glance. But redevelopment money is not just for big developers. Redevelopment money was intended to rebuild neighborhoods by providing encouragement to builders to take a risk. Redevelopment money was meant to fuel jobs in areas of the county where there were very few jobs to be had. Redevelopment money was meant to provide an opportunity for lower income families to own a home. Redevelopment money was meant to support public servants like teachers and firefighters the ability to afford a home in Silicon Valley when their salaries alone where not enough. The Governor was successful at making sure developers did not get subsidies. But what he also did is gave teachers and other public servants no choice but to accept foreclosure. Why? If a teacher…
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In January the State of California was provided federal dollars to help unemployed home owners pay their mortgage. The program is called Keep Your Home California. The program was allocated $874,995,915.28 (Really, 28 cents?) and intended to help home owners avoid foreclosure while looking for new employment. Eligibility requirements include: Homeowner must qualify as a low-to-moderate income household, as follows: Low-to-moderate income of 120% or less of the HCD Area Median Income (as defined by the California State Department of Housing and Community Development), for a family of four, in the county where homeowner resides. (For Santa Clara County, for a family of four HCD is $124,000) A loan financed in whole or in part by bonds that are tax-exempt under IRC section 143, the homeowner is presumed to satisfy income limits. Homeowner must complete and sign a Hardship Affidavit / 3rd Party Authorization documenting the reason for the hardship. Homeowners who have recently encountered a financial hardship due to underemployment or unemployment, including those whose financial hardship is related to their military service. Homeowner must agree to provide all necessary documentation to satisfy program guidelines established by CalHFA MAC. Homeowner must be currently eligible to receive unemployment benefits. Mortgage loan is delinquent or at risk of imminent default as substantiated by homeowner’s hardship documentation. Loans in foreclosure are not eligible. Homeowner in an “active” Chapter 7 or Chapter 13 bankruptcy is eligible for the program subject to the homeowner’s counsel or bankruptcy trustee approval in accordance with local court rules and procedures. General program eligibility is determined by CalHFA MAC, the housing counselor or servicer based on information received from the homeowner. Program-specific eligibility is determined by CalHFA MAC on a first-come/first-approved basis until program funds and funding reserves have been exhausted. Loan servicer will implement the HHF program…
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Need Help with your Mortgage? A great program brought to us by the Department of Treasury and Housing & Urban Development to help at-risk homeowners in our community.
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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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Q. What repairs do lenders require in Santa Clara County, Ca before approving a loan? We’re buying a 1940′s house in forclosure. It needs a lot of clean-up & cosmetic work. It has almost no kitchen cabinetry, a really grimey counter & sink and the stove doesn’t work. We think the roof leaks too. There are some standards an FHA appraiser will look for but you should recognize the appraiser has the right/ability to point out anything that he/she thinks affects value and place in that in the appraisal report for the underwriters review. “Below Average” condition is one that can catch a underwriter’s eye. For most, there must be a working range – oven, stove. Windows and doors that are able to be secured (not broken out). Working furnace. Water tight roof (from visual inspection). These are top of mind issues but recognize dirt and grime is not normally an issue for approval. They are mainly looking for structural issues (Broken foundation in a way that house is leaning or shows movement), safety related items (doors windows) and minimum appliance operation (like stove and furnace working so that hot plates and space heaters are not main sources). It is best to touch base with your loan officer and agent and find out any specific requirements to your loan type. Different loans have different requirements. Homepath verses FHA verses conventional – all different. Good luck, CJ Got a Real Estate question? Talk to CJ! Tags: Talk to CJ, appraisal, FHA, Foreclosure, Santa Clara County
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Ask this question and you will quickly find out there is no simple answer. Below are some guidelines for the various secondary market entities in regards to financing post foreclosure, short sale, deed in lieu, or bankruptcy. First step is to understand how each of these organizations define hardship. FHA: An event that was out of the borrower’s control that made a significant impact on the borrower’s finances and led to bankruptcy or foreclosure. Fannie Mae: A nonrecurring event that’s beyond the borrower’s control that results in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations. Freddie Mac: A nonrecurring or isolated circumstance, or set of circumstances, that was beyond the borrower’s control and that significantly reduced income and/or increased expenses and rendered the borrower unable to repay obligations as agreed, resulting in significant adverse or derogatory credit information. Realize that every situation is different and how your specific financial situation is perceived by an underwriter is, well, up to the underwriter. These are broad guidelines but are helpful to understanding the impact of a choice made in regards to your mortgage and total debt. Tags: Market Information, Sellers’ Tips, bankruptcy, chapter 11, chapter 13, chapter 7, credit scores, deed in lieu, foreclosure, short sale
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