8 Tips for Buying a Bank Foreclosure

On weekends, I tend to hold open houses for REO properties, and I am surprised how many buyers are not working with an agent. They hope to find their home by searching through the newest bnak foreclosure open houses. 

After they find the right house, then they choose their Realtor. This seems backward.  That process may have worked before, but not now. These buyers are missing out on a lot of services that Realtors bring to the table.

In a way, dealing with REO properties is like being in a seller’s market again. The good homes go fast, some times within 1 day, and most of the time with multiple offers. In this case the early bird gets the worm.

So how does a buyer better position themselves to buy an REO property and get their offer accepted by the bank.

1.     WORK WITH A REALTOR- New properties first show up on the MLS usually at 4 AM each morning.  Realtors are the first ones to see a new listing show up. Each Realtor has what we call “A” clients, that they work with and will call them 1st -as soon as good listing shows up. An “A” client is someone that is working exclusively with that Realtor. If you are an “A” client, you will get the call from that Realtor telling you about the great listing that just showed up.  

Even better, a Realtor can put you on their MLS auto searches that get emailed to you every morning.  If you look at those listings every day, you can stay on-top of the new listing market. If not, you can have your Realtor keep on the look out for you.

If you want a Realtor to work for you and alert you to new listings ask them for this kind of service. So clients who work with agents will be first ones to know about a new listing. So you can be the early bird!

On the other hand, buyers who do their shopping on the internet by themselves, will  see a new MLS listing 24- 72 hours after it shows up on the private Realtor MLS sites. So buyers not working through an agent might see properties up to 3 days after those who choose to work with Realtors. 

Finally, there are others who do their shopping in person, those who are professional open house lookers. These buyers are missing the boat.  Not all new listings have open houses right away. By the time these buyers take action- these home may already have multiple offers on it.

2.   GET PRE-APPROVED- Savvy buyers get pre-qualified if not pre-approved. If you are not pre-approved yet- make sure you do. If you do not know a good lender, ask your Realtor since they know who is good and will provide a smooth transaction. Most, if not all banks require a pre-qualification letter when you place an offer. Your offer will not be accepted or even considered without one. Most Realtors will not show you homes without a Pre-qualification letter.

3.   GET EDUCATED- By working with a Realtor, they can educate you about the home buying process. Once you find the right home, you will have to act fast.  Remember the early bird gets the worm. You will need to  know what payment you feel comfortable with, what your closing costs will be, and are you willing to pay any HOA or Mello Ross? Only your lender and Realtor can help you with that. 

4.   PUT AS MUCH DOWN AS YOUR CAN- An offer with the highest price is not always the best offer. Banks these days are looking for a strong buyer that has no problem qualifying. A buyer that has a 100% loan is considered a weaker qualified buyer than a person who puts down let’s say 20%.  So if you are putting less down and want your offer to be taken seriously, what should you do?  You need to up the ante if you can, offer more money for the home and maybe the bank will like your offer better.

5.   SHOW VERIFICATION OF FUNDS. Make a copy of where your down payment is coming form, a bank statement, an investment, a 1031 exchange property. Black out any personal account info on it. You can also have your bank write up a letter for you as well.

6.   MAKE YOUR OFFER A CLEAN ONE. Usually banks sell the property as is. Don’t ask for repairs. It is always best to keep your contingencies as short as possible. If you do not need a loan contingency, don’t use one. Ask your Realtor for advice on this one.   

7.   MAKE IT YOUR BEST OFFER UP FRONT. You will be in competition with other offers, so if it is a good home, it may be priced lower to encourage bidding wars. I called about a home the other day that had 23 offers on it.

8.   MAKE YOUR OFFER ASAP. In some cases I see homes go pending the day the house comes on the market. How does that happen? Some investors actually buy homes sight unseen. They have their Realtors scout out the homes and then make multiple offers and see which ones stick and which ones don’t. So if you are a first time home buyer, you are competing with those savvy investors that act fast. So take action. Know the market and what you want- check out the homes in the areas you want to live in.  Once you know what you want, what you want to pay, what your closing costs will be, then you qualify to actually buy a home. Good Luck!

 

 

 

 

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

 

A Bail Out for First Time Home Owners?

Do First Time Home Buyers have a bail out??

IF you are a first time home buyer and afraid to buy a home because you may lose your job- well if so, you GET A BAIL OUT. The government will cover you if you do. 

Read on this is taken from the The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

They launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month,  for six months,  to help make their mortgage payments.  A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.  To qualify for the Mortgage Protection Program, applicants must:

· Be a first-time home buyer – someone who has not owned a home in three or more years

· Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009

· Use a California REALTOR® in the transaction

 · Purchase the property in California

· Be a W-2 employee (cannot be self-employed)

To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

Here is a copy for your connvience- your Realtor must submit this form for you.

For examples on how the program works Click Here.
   
For a list of  Frequently Asked Questions Click here 

 The Home Team Girls care about you keeping you home.

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I’m Late with My Mortgage Payment- HELP

 Home Affordable Modifications    Avoid Foreclosure Free Counseling 

Are you having a hard time making your loan payment? Are you hearing about all those loan modification programs on the radio and TV and do not know who to trust?  Did you know that there is free counseling that is available to you through government programs?

You are not alone- there are millions of families who are just like you who have either missed one or more of their mortgage payments and still desperately want to keep their home.

If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable.

Am I eligible for a Home Affordable Modification? Answer these questions:

1.  Is your home your primary residence?
2. Is the amount you owe on your first mortgage equal to or less than $729,750?
3. Are you having trouble paying your mortgage?
   For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?
4. Did you get your current mortgage before January 1, 2009?
5. Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) more than 31% of your current gross income?

 If you answered yes to these questions- you may qualify for a loan affordable modification Click here

If you have missed 1 or more of your mortgage payments- call your mortgage lender immediately or call 1-888-995-HOPE (4673) to reach a HUD-approved housing counselor. Their counseling is free.

The Home Team Girls want you to keep your home. Call us for any questions and we will direct you to people who can help. If you can not get a loan modification, call us to see if a short sale if right for you.

Avoiding Mortgage Scams

 

The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Serving the Military and Veterans, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

Where home prices crashed early, signs of a rebound

Hard-hit areas, such as Sacramento, Las Vegas, parts of Florida and California’s Inland Empire, appear to be among the first cities in the nation to reach the early stages of recovery, as investors and first-time buyers compete for bargain-priced foreclosures.

•  By some indications, the market could be close to a bottom.  Pending home sales – homes that are under contract, but have not yet closed – and construction spending rose in March.
• When a market reaches bottom, foreclosures usually stop piling up and banks become more willing to issue loans, confident that the collateral backing them will not continue to decrease in value.
• The first-time home buyer tax credits from the federal and state governments, coupled with favorable home prices and near record-low interest rates, led to an increase in home sales in March.  Sales of existing, single-family homes rose 63.8 percent in March compared with the prior year.   Monterey County reported a sales increase of 248.7 percent and the High Desert region saw sales increase 172.7 percent compared with last year, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
• The median price for the state also increased in March, rising 2.2 percent in month-to-month comparisons.  March marked the first monthly increase since August 2007, while the statewide median price has remained in the $250,000 range for the past three months.

To read the full story, please click here

 

The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Serving the Military and Veterans, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

A short sale may be a way out- but beware

Some homeowners who sell their homes through short sales are finding their mortgage companies still try to collect some or all of the difference between the bank-approved short-sale price and the outstanding mortgage balance.  Some mortgage companies also are taking legal action to recover unpaid amounts after a foreclosure is completed.

•   A lender tactic gaining popularity is for the holders of mortgages or home-equity loans to require borrowers in short sales to sign a promissory note — a written promise to pay back a loan or debt.
• HSBC Finance has implemented a one-year moratorium on the collection of deficiency balances for short sales and foreclosures that occur after April 1, due to the “current economic environment,” according to an official with the company.
• Not all borrowers who sell their homes through a short sale or lose their homes to foreclosure will receive a deficiency claim.  Often, mortgage companies don’t try to collect unpaid amounts either because state laws prohibit or limit such actions or the cost outweighs the potential return.  California has anti-deficiency rules that prohibit lenders from pursuing borrowers after foreclosure, but California does not have anti-deficiency rules for a short sale.
• The borrower’s situation often is the determining factor in whether the lender tries to collect the unpaid debt or not.  The borrower’s employment status, assets, whether the home was purchased as an investment, and the amount of debt owed are taken into consideration.
• It is important that sellers are informed of the lenders requirements, read the fine print, and ask questions when selling their home via a short sale.  According to one real estate attorney who represents financially troubled homeowners, every short sale she has worked with has had a promissory note or terms giving the lender the right to collect a deficiency.  Often, the terms are buried in the sale contract, according to the attorney.

It is important that you work with a Realtor that has knowledge about short sales before you decide to work with them. Also it is important to talk to a Real Estate Attorney before you decide to sell so you get advice for your situation.

To read the full story, please click here

 The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Serving the Military and Veterans, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

House hunting? It’s not a buyer’s market everywhere

Some potential home buyers, especially first-time buyers, may be misinformed about today’s market, believing that all sellers are desperate and will accept any offer. However, in many desirable, middle-class neighborhoods, bidding wars are prominent and buyers often have to make offers slightly above the asking price.

• Although California’s median home price – the price point where half of the homes sold for higher and half for lower — was 39 percent lower in March than a year ago, many of the sales taking place are in areas, such as the Central Valley and the Inland Empire (Riverside and San Bernardino counties), which have higher foreclosure rates. These regions offer home buyers better opportunities to purchase homes at extremely low prices.

• The California housing market is often characterized as having three pricing segments: under $500,000, $500,000 to $1 million, and more than $1 million. Homes in the under-$500,000 segment have accounted for the majority of the state’s price declines thus far.

• As real estate is local, a home in one neighborhood with the same square footage and amenities may not sell for the same price as a comparable home in a neighborhood one mile away. By working with a REALTOR® familiar with a specific area, home buyers should be able to submit reasonable offers that are more likely to receive seller approval.

Read this Story

 

The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Serving the Military and Veterans, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

Avoiding Mortgage Scams

Fraudulent foreclosure “rescue” professionals use half truths and outright lies to sell services that promise relief, but fail to deliver. In reality, they make a quick profit by charging high fees or collecting mortgage payments, and keeping the money, rather than passing it on to the lender. Usually they use advertising messages like “Stop Foreclosure Now!” They are also known to use a variety of tactics to take your money, and sometimes your home as well. Knowing what types of scams are most common is the best way to avoid being conned.

 Types of Mortgage Scams:

Phony Counseling:   Some scam artists tell their victims that they can negotiate a deal with their lender if they pay a fee first. They tell them not to contact their lender and to let the “negotiator” handle the details. Once the fee is paid, the crook takes off with their money without contacting the lender.

 Bait and Switch: Other con artists trick their victims into signing documents for a new loan to make the existing mortgage current. Unfortunately the distressed homeowner could be surrendering the title of the house to a scam artist in exchange for a worthless or expensive “rescue” loan.

 Rent-to-Buy Scheme:  Some victims are told to surrender the title of their home as part of a deal that allows them to stay in the home as a renter, and buy it back during the next few years. But deals like this usually are so expensive that buying back the home becomes impossible. In the end, they lose their home and the scam artist takes off with the equity that they had built up.

 Bankruptcy Foreclosure: A few of the fraudsters may promise to negotiate with the victim’s lender or get refinancing on their behalf if they pay a fee in advance. Instead, they pocket the fee and file for bankruptcy in the homeowner’s name — sometimes without their knowledge.

 How to Find Legitimate Help

Homeowners who are having trouble paying their mortgage should contact their lender immediately. They may be able to negotiate a new repayment schedule. For more information, read “Mortgage Payments Sending You Reeling? Here’s What to Do,” at http://ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm

To learn more about shopping for mortgages, visit http://www.ftc.gov/credit and click on “Mortgages/ Real Estate.”

 Who to Contact if You’ve Been the Victim of a Mortgage Scam

The U.S. Federal Trade Commission works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or to get free information on consumer issues, contact: http://www.ftc.gov/ or 877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

  In general, be suspicious of:

• Anyone who wants the deed to your house for any reason, whether it’s to clean up your credit or obtain special” financing from an investor.

• Anyone who offers to rent your house back to you until you can get back on your feet.

• Lenders who encourage you to borrow more than you need or more than the value of your home.

• Terms that change at the last minute or offer next-day approval based on prepayments or up-front fees.

• Forms you do not understand or that contain blank spaces “to be filled in later.”

• Beware of phony credit counseling agencies charging high fees for financial counseling services you can get for little or no charge through non-profit agencies.

Red Flags for Mortgage Scams

The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Serving the Military and Veterans, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

Free Google 411 Service for Cell Phones

Here’s a number worth putting in your cell phone or your home phone speed dial: 1-800-GOOG-411.  Yes free 411 service!

This is an awesome service from Google, and it’s free — great when you are on the road.  Don’t waste your money on information calls, and don’t waste your time manually dialing the number.  I am driving along in my car; I need to call the golf course and I don’t know the number.  I hit the speed dial for information that I have programmed.

The voice at the other end says, “City & State.”  I say, ” Garland , Texas .”  He says, “Business, Name or Type of Service.”  I say, Firewheel Golf Course.”  He says, “Connecting” and Firewheel answers the phone.  How great is that?  This is nationwide and it is absolutely free!

Click on the link below and watch the short clip for a quick demonstration.
http://www.google.com/goog411

 

The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

DISASTER ADVICE FOR VETERAN HOMEOWNERS

 This bulletin is an excerpt form the Department of Veterans Affairs to provide information during major disasters. The information given below is primarily for homeowners whose loans are guaranteed by VA.

 Contact Your Mortgage Company

Contact your lender as soon as possible regarding your loss. You are not excused from making your regular monthly loan payments even if your home is not habitable. You should discuss forbearance or possible extension or modification of your loan if you are unable to make your payments on time. You should also have your lender explain procedures regarding insurance loss checks and repairs to your property, payment to contractors, etc.

 

Contact Your Insurance Company or Agent

File insurance loss claims as soon as possible. However, do not make a hasty settlement on insurance. When the property is damaged but repairable, attempt to get the engineer’s office of your local government to make an inspection for structural damage. If possible, get at least two estimates from licensed contractors for cost of repairs or rebuilding. Insurance checks for personal property and living expenses should be made payable to you only. Checks for damage to your home should be made payable to you and your mortgage company.

 

Contact FEMA (Federal Emergency Management Agency)

You begin the disaster application process by calling FEMA’s toll free number 1-800-621-FEMA (3362), or 1-800-462-7585 (TTY) for the hearing and speech impaired. In order to receive the maximum assistance, you must register with FEMA before their deadline expires. You cannot obtain assistance for uninsured losses or damages to your home from the Small Business Administration (SBA) or any other disaster recovery agency if you have not registered with FEMA. More information can be found at the FEMA website, www.fema.gov. Be sure to check every source for maximum assistance including the SBA. Do not pay your loan in full before checking with SBA on a loan for the uninsured portion of your loss. Low interest loans, cash grants, and housing assistance may be available from agencies associated with the disaster recovery effort.

 

Check Other Sources of Help

Veterans should contact local offices of the American Legion, Veterans of Foreign Wars, Disabled American Veterans (DAV), or other veterans organizations to see if special assistance may be available, even to non-members of the organization.

 

Change your Address

If you are receiving a monthly benefit check from VA or another source, and you will not be able to receive mail at your regular address, notify your local post office and VA Regional Office of your change of address. For information on VA benefits other than home loans, call 1-877-827-3702. For more info Click Here

 

The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

 

 

 

 

 

VA Business Programs for Veterans

An estimated 3 million American veterans own their own businesses. Most could benefit from VA’s enterprising veteran support services.

 

Services

VA offers:

·     A toll-free call center (1-866-584-2344), where veterans, military personnel or their family members can talk one-on-one with a business coach about how to start or expand a business;

·     Information on business management, financing and marketing, as well as small-business conferences and business training opportunities;

·     Information about legislation affecting veteran-owned business, including existing laws that require federal agencies to increase business opportunities for veterans by setting aside a certain portion of their purchasing dollars for veterans and service-disabled veterans;

·     Inclusion in a veterans business database for exposure to both commercial and government business, plus recognition as a verified veteran-owned or service-disabled veteran-owned small business.

 

A Web site – www.VetBiz.gov – has information on starting a business and entering the federal marketplace.  This site is linked to Vendor Information Pages (VIP), a free, online database of veteran business owners.  The VIP is used by federal procurement employees and federal contractors to locate veteran-owned and service-disabled veteran-owned small businesses.  Another database lists local, state and national sources of assistance for businesses.

For more information Click Here.

 

The Home Team Girls Realtors® Real Estate Team helping you with First Time Buyers, Vets and Active Military, Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

 

 

VA Mortgage Options for those in Financial Distress

Enhanced VA Mortgage Options Now Available for Veterans Of Potential Benefit to Those in Financial Distress

 Veterans with conventional home loans now have new options for refinancing to a Department of Veterans Affairs (VA) guaranteed home loan. These new options are available as a result of the Veterans’ Benefits Improvement Act of 2008, which the President signed into law on October 10, 2008.

 

“These changes will allow VA to assist a substantial number of veterans with subprime mortgages refinance into a safer, more affordable, VA guaranteed loan,” said Secretary of Veterans Affairs Dr. James B. Peake. “Veterans in financial distress due to high rate subprime mortgages are potentially the greatest beneficiaries.”

 VA has never guaranteed subprime loans. However, as a result of the new law VA can now help many more vets who currently have subprime loans.

The new law makes changes to VA’s home loan refinancing program. Veterans who wish to refinance their subprime or conventional mortgage may now do so for up to 100 percent of the value of the property. These types of loans were previously limited to 90 percent of the value.

 Additionally, Congress raised VA’s maximum loan amount for these types of refinancing loans. Previously, these refinancing loans were capped at $144,000. With the new legislation, such loans may be made up to $729,750 depending on where the property is located.

 Increasing the loan-to-value ratio and raising the maximum loan amount will allow more qualified veterans to refinance through VA, allowing for savings on interest costs or even potentially avoiding foreclosure.

 For more information, or to obtain help from a VA Loan Specialist, veterans may call VA at 1-877-827-3702 or visit www.homeloans.va.gov.

 

The Home Team Girls Realtors® Real Estate Team helping you with First time home buyers, Vets and Active Military, Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.