Wednesday, September 30, 2009

DON'T BUY ON THE REBOUND

It happens to thousands of homeowners each year.  They find their dream home but are outbid by another buyer.  Out of frustration they buy the next house they see.  BAD IDEA!!! 

Sure, it's disappointing to lose the "perfect" house.  But rushing to find a replacement can bring an even greater regret.  The fact is that most home buyers face some kind of a setback during their home search...albeit it pricing or financing or timing.  The key is to approach each step in the home buying process as part of a valuable learning experience.  

Finally, buying a home is not the ultimate goal.  Buying the right home is the goal.  Compromising with an inadequate choice is a sure path to Buyer's remorse.  I found out a long time ago that there will be another house coming on the market soon very often better than the first one you thought was the "perfect" house.


 Courtesy of Sherri Buttler, Sun American Morgage Company  sherri.buttler@SunAmerican.com  

       






   

MORTGAGE IS DENIED? HERE'S WHAT TO DO

Talk about raining on your parade!  You find your home, make an offer & then learn that your loan application as been turned down.  What to do now?

You may be able to turn a "NO" into a "YES" by taking the right steps:

Low appraisal-Try negotiating with the Seller or consider making a larger down payment should you have the money.

Not enough up front Cash-Lender determines that you don't have enough money to cover the downpayment + closing costs.  Ask the Seller to assume some of the closing costs or consider a non-repayable gift of funds from a relative.  Your lender will instruct you how to document this gift.

Insufficient Income-Due to governments "Making Homes Affordable" program, lenders are using a 31/38 rule when calculating allowable loan limits. Monthly PITI (principal, interest, taxes & insurance) should not be more than 31% of your gross monthly income. Your total debt (car loans, credit cards etc.) plus the PITI should not exceed 38% of your gross monthly income.  If your credit record is good & you've been carrying an equivalent housing payment, try to convince the lender to ease this guideline. If you or your spouse are expecting a salary increase, tell the lender who can then verify the forthcoming income increase.

Unsatisfactory credit (FICO) score--Lenders are looking for defaults, bankruptcies as well as late or missed monthly payments.  The lender needs to know the full picture if these issues are due to an illness, job layoff, marital problems or other short-term situations.  If you've regained financial stability for at least a year, the lender may reconsider.  If you have an up-and-down credit history, the only solution is to reestablish prompt payment practices.  There are also a few good lenders that will assist you in "cleaning up" your credit report and therefore increasing your FICO score.  Please contact me and I can refer you to these lenders which do not charge for this service...they just want to handle your loan when it comes time to buy.

Tuesday, September 22, 2009

FIRST TIME HOMEBUYER CREDIT ENDS DECEMBER 1, 2009

To qualify for this credit, the closing date for the home must take place after December 31, 2008 and before December 1, 2009.  If a taxpayer is building a home they must occupy the home between those dates.  The credit amoung is the lesser of 10% of the purchase price of the home or $8000.  The home must be occupied by the taxpayer for 36 months.  In addition, the taxpayer must not have owned a home in the United States for three years prior to taking the credit.  Selling or converting a home to rental property before the 36-month perior may subject the taxpayer to repayment of the credit.  The credit is not available for vacation homes or rental property.  In addition, this credit also has a phase-out range based on income.  You can find details on the IRS website  http://www.irs.gov/

Monday, September 21, 2009

HOME INSPECTIONS ARE A MUST! DEMAND ONE!

As a buyer you have the right to know what you are buying...especially in today's foreclosure market where homes are being purchased in AS IS condition with no guarantees or warranties.  A professional home inspection is something you MUST do regardless whether or not it is a new or pre-owned home.  This inspection is an opportunity to have an expert look closely at the home you are considering purchasing.  It is best to have all the inspectors findings in a written report and not rely on an oral opinion as they are easily misinterpreted.

Make sure your inspector is Stated licensed and a member of ASHI (American Society of Home Inspection).  Accompany the inspector to the inspection if possible and ask questions.  If you can't be present ask a family member or close friend to represent you.

Most real estate contracts provide for an inspection to be done within a certain time period.  This inspection clause is considered a contingency to your purchasing the home.  If you don't approve the inspection, you don't have to buy.  Many times the seller will make the necessary repairs found in the Inspection
Report but sometimes they won't (as in FHA and Bank Owned Foreclosures).  If you do not approve the inspection report and wish to cancel the contract, ALWAYS put your cancellation in writing within the time period specified in the purchase contract.

Friday, September 18, 2009

TO TWITTER OR NOT TO TWITTER....THAT IS THE QUESTION

If you don't know what it means to "Twitter" you may be behind the times.  Social media tools like "twitter" are as popular and user friendly as yesterday's PDA's.  Other social media trends include Google Reader, Twitter , Activerain and Facebook which are the new wave in connecting with others.  These new avenues seem to bring networking circles closer together and allow more frequent communication. While we may not know whether these new methods of mass media are a blessing or a curse, it is probably a good idea to at least get familiar with them.  If you don't, you may just be missing the boat that's leaving port.

Facebook seems to be used in more of a business or professional setting.  It provides pictures of people and periodic updates as to what these people are doing.  Twitter requires communications to be in bytes of approximately 140 characters or less. Ironically one of the most valuable aspects of Twitter is developing the skill of communicating a mouth full in a few choice words.

One of the best things about these new methods of communications is that by and large they are free.  As postage becomes more expensive and takes more time, it makes sense to use the Internet as a creative chatter box.

Thursday, September 17, 2009

TIPS FOR FORTHCOMING 2010 CENSUS - PROCEED WITH CAUTION

There will be a mass mailing of US Census forms to fill out in 2010.  Be CAUTIOUS of what information you give to any Census worker---NO Social Security Number, NO Banking Information or addresses of rentals. (tax returns reflect that information.) and NO SALARY INFO.  With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but prudent, so not to become a victim of fraud or identity theft.


The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country.  Eventually more than 140,000 Census workers will count every person in the US and will gather information about every person living at each address, including name, age, gender, race and other relevant data.


The big question is - How do you tell the difference between a U.S. Census worker and a con artist?  The BBB offers the following advice:  If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. And NEVER invite anyone you don't know into your home.


Currently, Census workers are only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the
U.S. Census. While the Census Bureau might ask for basic financial information, such as a salary range, it will not ask for Social Security, bank account, or credit card numbers nor will employee solicit donations.




Finally, Census workers may contact you by telephone, mail, or in person at home. However, they will NOT contact you by Email, so be on the lookout for Email scams impersonating the Census. Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.


FOR MORE INFORMATION OR ADVICE VISIT http://www.bbb.org/

Wednesday, September 16, 2009

REAL ESTATE MOVES-TOP MOST FORGOTTEN ITEMS

When you are running around on moving day, here are some items to remember:

A. Copies of family medical records, vet records and prescriptions to transfer to a destination pharmacy.  Also your child's permanent school record and shot records.

B. Anything that you have placed in a hidden spot....like jewelery, wills or other valuables.

C. Check with the dry cleaners to make sure you haven't forgotten to pick up your favorite piece of clothing.

D. Keep your new address handy....you may be so stressed that you can actually forget it.

E.  Leave out cleaning supplies for a final cleaning.  Many of these items mover's won't transport anyway.

F.  Don't pack your garage door openers and appliance instruction manuals.  Put them in the cabinet over the stove with a sign for the movers "Don't Pack" on the doors. Spare house keys, mailbox keys and pool keys should be placed there too.

G. Don't forget your pets.  Make arrangements for their transport....just don't leave them with the house....like so many people are doing these days.

H.  Open a destination bank account about a month before your move so that you will have immediate access to your funds and local bank checks.  This also gives the Title company an account for the transfer of closing funds from the sale of your home.

I.  Collect all the spare keys (from neighbors or other outside hiding places) and leave them in a predetermined spot for the new owners.

Tuesday, September 15, 2009

WHAT IS A HOMEOWNER'S ASSOCIATION (HOA) ASSESSMENT LIEN?

Once a homeowner becomes delinquent on their monthly fees (assessments), the HOA attaches an assessment lien to the homeowner's property for the benefit of the HOA.  This assessment lien allows the HOA to sell the homeowner's property to repay delinquent fees owed to the HOA.  Arizona law defines that an HOA assessment lien may only be imposed for past due assessments, late fees, collection fees and attorney's fees relating to the past due HOA assessments. An assessment lien foreclosure lawsuit can only be filed if the homeowner is delinquent by at least $1,200 in overdue assessments or it is a least one year past due.   If the HOA begins its foreclosure lawsuit too soon, the lawsuit can be dismissed.

An HOA assessment lien also operates as a cloud on the title which prohibits the seller from selling or refinancing the property until the HOA assessment lien is paid off.    Most assessment liens are automatically extinguished if collection proceedings are not brought within 3 years.  Furthermore, once a property is foreclosed upon, the HOA assessment is extinguished and the HOA essentially loses whatever monies they are owed. 

Monday, September 14, 2009

DON'T MAKE MAJOR CREDIT PURCHASES DURING LOAN QUALIFICATION

Home buyers---don't go on a spending spree using credit if you are qualifying to purchase a home. Your loan pre-approval is subject to a final evaluation of your credit report just a fewdays prior to closing. Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility ie. $300 car payment could mean that you qualify for $30,000 less in a mortgage. Even if you have sizable savings, don't make any large purchases until after closing. The last thing you want to happen is to have your loan declined and lose your new home.

SHORT SALES DEFINED & WHAT INFO TO PROVIDE LENDER & REALTOR

Here's my definition in a nutshell: A short sale is nothing more than negotiating with loan holders a payoff for less than what they are owed. Otherwise, a sale of debt generally on a piece of real estate, short of the full amount owed. It does not extinguish the remaining balance unless this is clearly settled in the acceptance of the offer. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing since there are legal and other carrying costs that are associated with a foreclosure. This occurs on a daily basis since many homes have loans that are considerably higher than the current value of the home. If you would like my Homeowner's Short Sale 16-Step Instructions emailed to you please contact me through this blog site.

ARIZONA HOME OWNERS, SENIOR CITIZENS & INVESTORS BE CAREFUL!!! PHONY FORECLOSURE SCHEMES ARE RAPIDLY GROWING!!!

Panicky Arizona home owners who have fallen behind in their mortgage payments and are on the verge of foreclosure are vulnerable to phony " real estate mortgage rescue" or "home foreclosure prevention" schemes. Do not turn to these companies with the hope of preventing the loss of your home without doing your homework first. Call the Arizona Better Business Bureau plus asking for local references. These schemers want to take your home, steal any equity you have built up and may focus on unsuspecting Senior citizens.One common foreclosure prevention scheme has the "rescue company" lending a homeowner money @ high interest rates to make back-payments to their mortgage lender. The homeowner must agree to make monthly payments to the "rescue company" that includes the original mortgage payment plus a payment on the new loan. The "rescue company" also requires the homeowner to sign a deed tranferring the property to the "rescue company". The homeowner ends up renting the home that they formely owned. If the homeowner fails to make the "rent" payments on time, the "rescue company" evicts the former owner. You have lost all your rights and equity in what was once your home.

ARIZONA HOME BUYER'S PROPERTY INFORMATION WEBSITES

Bank-owned and foreclosure homes are currently being sold "AS IS" without the homebuyer receiving any kind of Seller's Disclosure regarding the history of the property ie. repairs, room additions, criminal issues, environmental sites or any other disclosure that may affect the buyer's decision to purchase. A real estate agent can provide you with websites containing this vital information; however, if you are purchasing property without an agent, here are some websites that you may want to peruse.
County Assessors/Tax Records Maricopa County www.maricopa.gov/assessor or http://treasurer.maricopa.gov/parcels Other Counties www.az.gov/webpage/portal
Termites & Other Wood Destroying Pests www.sb.state.az.us/TermiteInsp.php orhttp://www.sb.state.az.us/
Lead-Based Paint Disclosures www.epa.gov/lead/
Roof Information http://www.azroofing.org/
Septic/Other On-Site Water Treatmentwww.azdeq.gov/environ/water/permits/onsitenot.html
Swimming Pools http://azdhs.gov/phs/oeh/pool_rules.htm
Mold www.cdc.gov/mold/default.htm
Deaths/Felonies on the Property www.azleg.state.az.us/ars/32/02156.htm
Superfund Sites www.adeq.state.az.us/environ/waste/sps/phx.html
Sex Offenders https://az.gov/webapp/offender/main.do
Crime Statistics http://www.faxnet1.org/
Schools http://www.ade.state.az.us/
Soil Problems http://www.az.nrcs.usda.gov/ (Search shrink/swell)

Finally, be sure to talk to the surrounding neighbors and drive around the neighborhood.For additional Maricopa & Pinal county real estate homebuyer related websites contact me through my blogsite.