Mike’s Real Estate Show

   I do a pest report here in the greatest state of California but insist the BUYER order/pay for the home inspection. I don’t want any whisper of “steering” (hey, I’m in California!!Land of lawsuits, disclosures ad infinitum!!) or handing a Buyer a home inspection I ORDERED. No, let them get dragged around by the home inspector and shown every nook and cranny of their new digs and be given THEIR OWN report with list of summary items to work on. We can then negotiate this through. Read the rest of this entry »

Could March be moment for housing?

BRAD BOLLINGER,
BUSINESS JOURNAL EDITOR IN CHIEF

After a record runup in prices, the North Bay housing market peaked in the late summer or early fall of 2005, although the downturn wasn’t widely recognized until well into 2006.  Six months or a year from now, experts may point to March 2008 – right now – for when the market bottomed.Yes, this is going way out on a limb given the volatility, pain and uncertainty in the financial markets today. And hard data isn’t available yet. But neither was it available in August or September of 2005. Read the rest of this entry »

Don’t Pay Another Cent in Rent To Your Landlord . . .

 ”If you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours.”

It’s a dream we all have - to own our own home and stop paying rent. But if you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours. How could it when you’re not even permitted to bang in a nail or two without a hassle. You feel like you’re stuck in the renter’s rut with no way of rising up out of it and owning your own home. Don’t Feel Trapped Anymore !!
It doesn’t matter how long you’ve been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you really can: 

save for a down payment
stop lining your landlord’s pockets, and
stop wasting thousands of dollars on rent.
6 Little Known Facts That Can Help You Buy Your First Home
The problem that most renters face isn’t your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent.

But saving for this lump sum doesn’t have to be as difficult as you might think. Consider the following 6 important points: Read the rest of this entry »

10 Questions You Must Ask When Interviewing an Agent

Warning! Do Not Hire Any Real Estate Agent Before You Read This FREE Special Report
Not all real estate agents are the same. If you decide to seek the help of an agent when selling or buying your home, you need some good information before you make any moves.

Picking the right agent is one of those critical issues that can cost or save you thousands of dollars. There are very specific questions you should be asking to ensure that you get the best representation for your needs. Many agents would prefer that you don’t ask these questions, because the knowledge you’ll gain from their honest answers will give you a very good idea about what outcome you can expect from using this agent. And let’s face it - in real estate, as in life - not all things are created equal. Read the rest of this entry »

Your home is an investment in living as well as in savings. If neglected, it will pay no dividends. If properly maintained and improved, it will pay a high yield in comfort and usefulness for your family and in avoidance of costly repair bills. Home improvements also tend to raise neighborhood standards and, as a result, property values. From an economic standpoint, home improvements mean higher employment, increased markets for materials and home products–and therefore a more flourishing Sonoma County community. Read the rest of this entry »

The following article is printed with permission of Brad Bolinger, Editor, NorthBay Business Journal

Equity share can help close gap for homebuyers
PROCESS BRINGS TOGETHER INVESTORS, HOMEOWNERS TO OVERCOME LENDING LIMITS
Monday, February 18, 2008
BY HARRY COFFEY

People still want to buy homes, but the subprime mortgage meltdown, tighter credit rules and rising ARM rates are keeping many buyers out of the market. Stringent borrowing criteria are preventing many would-be homeowners from qualifying for fixed-rate loans.Previously, a buyer would get a first mortgage for 80 percent of the purchase price and a second mortgage for the remaining 20 percent to put down on the house. However, the days of 100 percent financing are gone. Now the ability of a prospective buyer to raise one-fifth of the purchase price as a down payment is the key obstacle. Read the rest of this entry »

Gee, never heard that one before! This is a common lament and an age old question. Find another home to write on. In our market I see some killer deals and those which are still “hoping” they can get what they “need” which is NEVER a pricing criteria. Here’s a strategy you may wish to employ. Find three properties which you would like to purchase. Have your Realtor/Licensee write THREE CONTRACTS and then have Him or Her present your offer IN PERSON to the SELLER!! Write this into the offer! “Subject to offer being presented to Seller by Buyer’s Agent”. Then when your Realtor/licensee presents this offer SHOW the other two offers to the Seller. Keep this as your “ace-in-the-hole”. The dialogue is, “My Buyer’s first choice is your home. However, he is keenly aware of pricing in this market. He feels that the downturn and his price offering will protect his down payment. He is willing to move forward immediately. However, he has instructed me to show you these other two offers on properties in this price point. He needs an answer on this property tonight. If not he has instructed me to present the next offer.”  I have used this for “shock value” as it tells the Seller they are NOT THE ONLY property on the market and adds immediacy to the deal. Give it a shot and be prepared to move on! I had one friend of mine who did the same thing but he took it to a new level of arrogance–he literally ripped up the contract in FRONT of the Seller to drive home the point!  Hardly “win-win” but it gets them back to the table!! (Course he has a copy in his briefcase!!). Go get ‘em!

Mortgage Insurance Changes in California and Other Restricted Markets
 

First off, what is mortgage insurance (MI)?  It is insurance written by an independent mortgage insurance company to protect the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sales price. 

I do believe the advent of mortgage insurance, as we know it, came about in the 1950’s.  Prior to that you had to have a 20% down payment when you bought a house, or you had to do an FHA loan.  There just were not a lot of options.

Back in March 1998, Ted Appel of The Press Democrat interviewed me about the advantages of doing 80-10-10 loans or 80-15-5 loans instead of a regular loan with MI.  Prior to the fall of 1998 you literally had to refinance to get rid of your mortgage insurance.  I know, I had a good interest rate at the time, but if I refinanced just to get rid of my mortgage insurance my payment was going to go up!  So this article from March 14, 1998 was very timely.  The purchase market was just at the beginning of what was going to be seven years of straight up property values. 

In September/October of 1998 the Homeowners Act of 1998 passed.  You could now drop your mortgage insurance after two years if you had a good payment record and you could demonstrate, with an appraisal, that you now owed less than 80% loan-to-value.  MI was basically dead.  It was still not tax deductible and it was just easier to do two loans, an 80% first mortgage and the remaining was done as a second (as an equity line of credit or a fixed home equity loan).  The rates on the seconds were very appealing and tax deductible.

Let us now jump ahead to 2007.  Now MI is tax deductible as long as your adjusted gross income is $100,000 or less.  Good timing since the residential real estate market was starting to sink.  It really started to get ugly, at an accelerating pace, in August 2007.  Second mortgages would no longer go to 100% financing.  Then it was 95%, and now it can be as low as 80% in California (I think it is 65% in some parts of Florida and Nevada).

Time to dust off the mortgage insurance charts!  But wait!  We have big changes happening in MI land that make financing a little harder.  So let me get to the bottom line….

So far I have heard of new guidelines from MGIC and RMIC.  I am sure PMI, GE and the others are developing their new guidelines as we speak.  Here are some of the basics for restricted markets (and that is all of California):

• LTV/CLTVs of 90.01% - 95% require a credit score of 680.
• LTV/CLTVs of 90.00% or less requires a minimum credit score of 620.
• The maximum LTV/CLTV for condominiums is 90%.
• LTV/CLTVs greater than 95% are not eligible.
• Investment property loans are not eligible.
• Cash out refinances are not eligible.
• Reduced documentation (Alt-A) loans are not eligible.
• Potential negative amortization, including Pay Option ARMs are not eligible
• Expanded Criteria (A-) are not eligible.
• Debt to income ratios will be maxed out at 45% for owner occupied homes, 41% for investment properties.
• Fully documented loans only.  No stated income or no documentation loans.

Remember, these guidelines are for restricted markets and loans above 80% LTV.  If you happen to be buying a property in Montana, you’re golden!  There are no restricted areas in Montana.

Ok, there will be the occasional exception to the rule.  There will be variations from one mortgage insurance company to another.  Compensating factors, like 6 – 12 months savings might make a difference.

So there you have it.  Seller carry-back seconds should become quite popular again.  This will not last forever, but it is what we have now.  Bottom line, if you are going to be in the market to buy a home or refinance your home you will need a mortgage professional who has experience to guide you through the minefield that has become California real estate financing.  And you know what?  Owning your home will be affordable and you will absolutely love it!

Kris Anderson

Allstate Mortgage Company

1260 N. Dutton Avenue, Ste 274

Santa Rosa, CA  95401

(707) 521-3434 ext 23

Email:  krisanderson@manos.us

Website:  www.krisanderson.net       

February 22, 2008

Activity not what it should be on your House now for sale? Here’s a list of suggestions which I have borrowed from many top flight pros in our industry:

1. Open Houses during school drop off time and school pick-up time. (If you’re near a school).
2. Poll all other agents who have a similar priced home and ask THEM how their activity is.
3. Do a reverse prospecting function on the MLS to see who has a buyer in this price point.
4. Pull up every agent who has SOLD a property in your listings area for the past year. Send them an email or call.
5. Open Houses during the week.  Twilight Open House when folks are coming home!
6. Craig’s List–run it under different headlines

Read the rest of this entry »

  A blogger in Florida is being sued by a large developer for stating on his blog that this particular developer had gone “Bankrupt”. This was false and the guy is now being sued for libel. Here are my thoughts on this:

A very simple truth here which every journalistic knows–you always get your facts straight before you publish. Read the rest of this entry »