Real Estate Answered's blog

The question floating around the market amoung buyers is "Is it time to buy?"
Wow, what a loaded queston. Many industry experts agree it's a great time to buy because rates are low and prices are low.

Since the market is really determined by buyers and sellers, it makes sense to ask the consumers.

I'd love to hear everyone's opinion as to why they think or don't think it's the time to buy.

Looking forward to everyone's responses.

Haven't had an opportunity to write another piece but would like bloggers to note : Fed announces quarter-point rate cut
Posted (Roy McKenzie) in breaking news, news, mortgage on December-11-2007

The stock market plunged today as Federal Reserve Chariman Ben Bernanke announced that the fed would be cutting interest rates for the third consecutive time by a quarter point.

What does this mean for homeowners? While this won’t be the key to fixing the economy, it does mean the Federal Reserve is on our side:

1.Purchasing a home is even more affordable with the new lowered interest rate.
2. With a lower interest rate, now is a great time to refinance!
3. Home equity lines of credit will now be cheaper.
4. Rate resets might not be as severe for borrowers with adjustable rate mortgages

find this article and many more at http://www.pmzbuzz.com/2007/12/11/fed-announces-quarter-point-rate-cut/ and www.PMZbuzz.com

Real Estate Answered is Cindy Chen, your California PMZ Realtor.

There still remains greater than $10 trillion of untapped home equity stock. As fewer homes are sold, fewer loans are taken out to finance purchases and surviving mortgage firms are refocusing their market to getting homeowners to refinance. Lenders promote refinancing as a flexible option to reduce bills by lowering interest rates and stretching out payments. The problem with such a mortgage pitch is that it plays down or doesn’t disclose the fact that they are temporary. Critics say such an offer appeals to the same inclination that led many borrowers astray, living beyond their means.

Many borrowers made their first home purchase with just such program, a low 2-3 year fix rate, now becoming adjustable. With declining home sales and fallen home prices, many of these homeowners are faced with negative equity, increased monthly payment and weak savings. Depending on how long a borrower has owned their home, income, financial and credit history, there are considerable options before selling or foreclosing.

The first step is figuring out one’s financial options by a visit with your loan consultant. My loan consultant is Jesse Santana with PMZ Home Loans. Jesse is honest and informative. He takes as much time needed in explaining the benefits of the FHA Secure program over the fix period-ARM or even the standard 30 year fix and who would qualify for it.

The FHA Secure program is intended for homeowners with weak credit, no equity, their payment rate has become adjustable, they feel the effects of the increase and are behind by 1 late payment during the adjustable period. The borrower is qualified by showing in their income the ability to pay back the loan. The borrower has never missed or been late on his/her payment during the period in which the loan was fixed. If the borrower meets the qualifications, FHA Secure will loan up to 98% of the current market value of the home no greater than $362,720.

In a case where a home appraises for less then the owed amount the borrower might have to cover the difference. Where some homes were bought for 350K, are now valued at 320K, the borrower would need to repay the remaining $30,000 in order to transfer the 320K to the FHA Secure. For borrowers who don’t have such savings, they must rely on the loan consultant to help in diligently negotiating the remaining $30,000. Depending on individual cases and which lending institution, Jesse has negotiated for a lender to take a loss (meaning borrower is forgiven the remaining debt) or take special interest with deferred payments. The borrower needs to check with their tax advisor as to whether a gift is to be reported.

“Often times, the new payment comes out close to what the borrowers were paying in the fix. Though the process takes longer then a regular refi, because of the time it takes to negotiate the owed difference, average around 30-45 days.� Jesse informs me.

The FHA Secure loan should assist many homeowners and ease monthly payments here in Stanislaus County were the median home price is $315,500. With the FHA being a fix loan, it’s a great long-term solution for many families facing foreclosure. Most mortgage brokers and banks have made the FHA available to their clients or call Jesse Santana with PMZ Home Loans, he is happy to answer individual concerns.

Real Estate Answered is blogged by Cindy Chen, “Your PMZ Realtor�
For more information call (209)341-9073

Facing Foreclosure: general proceedings.

California is averaging 1 foreclosure out of 88 homes. Job loss, divorce and health problems are the main reasons people stop making mortgage payments. Many homeowners are also finding their fix rate near expiration or an adjustable rate payment greater then they can afford. Due to the state of the current housing market, many people are facing foreclosure. It’s all over the news, all those statistics and explanations about what happened doesn’t tell us what to do next. This series of blogs is intended to reach those who are looking for answers and common ground. Please feel free to post your own experience, questions and answers.

The American economy is strong enough to overcome the trouble in the country’s housing market although the subprime mortgage crisis may take longer than expected to resolve, say U.S. Treasury Secretary Henry Paulson. Housing is 1/3 of the U.S. economy and will continue to be a long-term growth asset. The Feds and US government is showing support for homeownership making FHA programs available to those in need. Homeowners need to begin believing in their home and holding for long-term return.

Depending on various factors, the borrower’s financial history, assets and case there are different solutions. Foreclosure doesn’t happen overnight. Typically a borrower is 60-90 days past due on payments before their lender will consider them in default. Before you miss a payment, begin consulting with your lender, lawyer, CPA, asset manager, loan consultant and Realtor.

The common initial reaction is to run and avoid the phone calls after you’ve already missed a payment. The reality is the sooner you contact your lender and begin working out a repayment plan or postponement of foreclosure proceedings, the more time you’ll have to resolve the situation. Lenders do not want to foreclose on your home, even more so with the state of the economy and housing market.

For many, any one of these scenarios is likely: refinance, payment plan with lender, sell, short sell, a deed in lieu of foreclosure, foreclosure, or/and file bankruptcy. Because financial and estate laws are complicated, have different legal and tax consequences there is a different solution to each individual, and a borrower must consult with their lawyer to determine which is best for them.

Without a doubt, this is a stressful time for any homeowner. Aside from dealing with the personal factor of a loss (job, love one, health), one must stay focus and strong to manage dealing with another most important asset, their home. The only common solution that all homeowners facing foreclosure must do is not let depression get the best of them. Regardless of how busy our lives are with kids, family and work we must make it our priority to take care of our financial health and home. Wake up early, use your lunch hour and instead of watching TV after 5, start calling your lender, loan consultant, and lawyer, make it your priority and second job (looking for another job should come first) to resolve the situation to avoid foreclosure.

In our modern day society, too often if a goal is difficult to achieve, takes too long to work through, does not give us instant gratification, we just give up. This general consensus gave justification to the popularity of sub-prime, adjustable loans that qualifies everyone into an unaffordable home. Now foreclosure seems like an easy solution, dealing with legal and financial issues, reading through fine print and putting the puzzle together over the next 6-9 months is tedious. Foreclosure is not meaningless a word, like bankruptcy there are greater consequences that will make it difficult for one to build for retirement and securities at a later point in time. The gratification for all that work, plus another seven years of ups and downs is homeownership, “real� equity and financial security.

Stay connected for Facing Foreclosure, Part 2: Refinancing into an FHA loan.
Real Estate Answered is blogged by
Cindy Chen, PMZ Realtor.

Anyone interested in the J-14 condos please visit

http://www.huffcon.com/survey.aspx

to fill out a survey.

My own selections were ammenities that were structural and had to be built-in were prioritized over items like appliances which could easily be added in later.

Condos are coming downtown in 3 years. Affordable Condos around Modesto coming in 3-5 years. Affordable Single Family Homes available now.

A General response to last night's council meeting.

We want biz in all parts of Mo Town so all existing neighborhoods/residents can enjoy a revitilized market and completion of their neighborhood ammenities originally promised to them in the booming market(ie parks, schools, shopping).

Meanwhile the Council and Planning dept. should advocate centralized growth and upwards development. A better transportation agenda should be just as important as parking discussions were in last night's council mtg. This will attract the next demographics of homebuyers to Modesto for affordable living in California. As the new generation of homeowners will be telecommuters not road commuters, buy local organics not fast food, ride bikes not drive suvs and are community focused.

To continue the City's show of support of diverse cultures, in spite of bad pr with revoking of Sin City's dance permit... the City should sponsor "Cultural" events such as Multi-Cultural festival (just past)or Cinco De Mayo. Or make appearances at the Greek Festival, Chinese New Year celebration, etc... Or just better PR in this direction. This perception of the Council will change with district voting, also just around the corner.