Ready, Set, GO!

actnowDon’t obsess with trying to time the market and figure out when is the best time to buy.  

Trying to anticipate the housing market is impossible.

The best time to buy is when you find your perfect house and you can afford it.  Real estate is cyclical, it goes up and it goes down and it goes back up again.

So, if you try to wait for the perfect time, you’re probably going to miss it out!

 

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PORQUE LOS PRESTATARIOS PAGAN SEGURO PRIVADO DE HIPOTECA?

PORQUE LOS PRESTATARIOS PAGAN SEGURO PRIVADO DE HIPOTECA?

Debido al riesgo en el incumplimiento y pérdida del préstamo. Los Bancos requieren el seguro de hipoteca privado conocido como PMI en PMI copyhipotecas cuyos compradores traen menos del 20% del precio de compra. Si los prestamistas pagaran seguro de hipoteca y pasaran el costo a los prestatarios reflejando un tipo de interés más alto, pudiendo esperar que los intereses incrementen drásticamente. Si el prestatario paga PMI estaría evitando este riesgo potencial.

Generalmente, cuanto más grande es la cantidad del préstamo, más riesgo adquiere el prestamista. El seguro de hipoteca privado es protección para el prestamista contra un prestatario que incumple en su préstamo hipotecario. Si el prestatario no pudiera pagar el préstamo, el prestamista tiene una manera de conseguir su dinero de regreso a través de la aseguranza privada al préstamo o PMI. Infórmate para que tus decisiones sean las mas acertadas al momento de invertir en la compra de tu casa.

The housing market right now

The housing market right now

Prices should stabilize this year.  Lender’s regulation, consumer confidence, investors tapering purchases, local economics, and rising home prices have forced participants to continually adjust to a market that has been anything but stable.

imagesCA9ELC9MGenerally speaking, we see price growth, which should help boost the confidence and purchase activity from buyers on the fence. Looking at home price trends by tier, it’s apparent the impact of investor activity has been concentrated in the low price tier segment.   There is a good price growth potential and could motivate enough buyers to sustain an overall rate of home price growth consistent with historical norms.

Credit and affordability issues remain. Mortgage rates have dropped across all loan types including FHA loans, USDA loans, VA loans, and conventional loans backed by Fannie Mae and Freddie Mac, and 30-year rates are at their best levels of 2014.

 

California remains the nation’s priciest housing market

imagesCA9ELC9MFor the seventh consecutive quarter San Francisco, San Mateo, Redwood City,  California remains the nation’s priciest housing market, according to the NAHB index.  About 11 percent of homes sold in the second quarter there were affordable to families earning the area’s median income of $100,400.-

Cities that were found to be among the least affordable in the second quarter are:

  • Santa Ana-Anaheim-Irvine, Calif.
  • Los Angeles-Long Beach-Glendale, Calif.
  • San Jose-Sunnyvale-Santa Clara, Calif.
  • New York-White Plains-Wayne, N.Y.-N.J.

In general The Housing affordability is facing another hit due to higher home prices and qualifying income levels despite borrowing costs from mortgages rates remaining at their lowest levels of the year according to the National Association of Realtors latest reading on its Housing Affordability Index.  Nationally, affordability is down from 168.5 in June 2013 to 153.4 in June 2014

However, Homeowners are still able to take advantage of programs that allow them to refinance and lock in a low mortgage rate with price growth providing equity. Locking in a lower rate now will save money paid in interest for the long term.

F.T.C Video (Spanish)

F.T.C Video (Spanish)

F.T.C Video (Spanish)

More Help For Homeowner’s Who Are Having Difficulties With Their Mortgage Payments

More Help For Homeowner’s Who Are Having Difficulties With Their Mortgage Payments

More Help For Homeowner’s Who Are Having Difficulties With Their Mortgage Payments

By Sandy Flores

Special to Excelsior

Many homeowners facing financial hardship are struggling to keep their property, but need help to maintain and continue with their mortgage payments. Month face this same situation and suddenly affected by the inability to make a payment and are meeting more than one, but much can be done to catch up on the backlog.

 Unfortunately there have been opportunistic companies known as “specialists Foreclosure Rescue”, “Specializing in Loan Modifications,” etc., That promise to help homeowners who are facing foreclosure to save their property, refinance or modify their mortgage, and improve your credit to buy time.

They are companies that promise to pay your mortgage in arrears, improve your credit and even debt consolidation. In some cases you are told to do so you must pass “temporarily” writing home to a “third person or entity.” They allow you to continue living at home as a renter with option to buy back her home after a certain period of time.

The problem once you transfer their rights of living to another person, when he has no option to recover your home or suggest to perform a bankruptcy occurs. In other cases they say they need to sell the property to them and then they sell the property back to you at market price today. These are some of the tactics to which homeowners who are struggling to make mortgage payments face.

It is important to know that all homeowners who are facing very difficult financial situations have alternatives and options to retain their property and avoid foreclosure, here are some of the most common:

Repayment plan, known as “Forbearence”. Under this option, the bank may allow a reduction or suspension of your payments for a short period of time. This option will allow you to remain on your property at reduced or temporarily suspended to allow economically stabilize payments.

Loan modifications. This is another option if you do not have enough income to make your payments current. The Bank will examine the option of changing the terms of your original loan to suit a payment that is more accessible to their financial situation.

HAFA – Short Sale or “short sale”, the bank will allow you to sell your property at current market value, even if your balance is higher than the selling price. Under the terms of a short sale, your lender may forgive your mortgage debt in full under the terms described in the Law on Mortgage Debt Help 2007.

Deed in Lieu of Foreclosure – In this option, your lender may accept voluntary transfer of title to the property and avoid the impact of foreclosure, as well as expenses related to the embargo.

Research the different options available to you. One alternative may be more feasible and beneficial for you. Do not wait until the last minute to get all the necessary information.

Take action immediately if this is happening and is in a similar situation. Time goes so fast! Not only have less time to react, but also fewer alternatives and solutions to work with them and avoid repossession. Remember that banks do not want the property back and will do everything possible to help.

 

Buying a Home Awaits You – Check it Out! (Spanish)

Buying a Home Awaits You – Check it Out! (Spanish)

Buying a Home Awaits You – Check it Out!

5  Options If You Have Been Denied a Loan Modification

5 Options If You Have Been Denied a Loan Modification

5 Options if You Have Been Denied a Loan Modification

By Sandy Flores

Many homeowners who are facing very difficult financial situations, have options to avoid foreclosure. Here are some of the most common:

Repayment plan,  “Forbearence”. Under this option, with approval from your lender, it may allow you to reduce or suspend payments for a short period of time. Following this abstention, you start again with your regular payments, including the additional amount that accumulated as a result of this agreement. This option will let you stay on their property at reduced or temporarily, allowing you to stabilize financially suspended payments.

 Loan modifications. This is another option if you do not have enough income to make your payments current. The lender in its sole discretion has the option to change the terms of your original loan to suit a payment that is more accessible to their financial situation. These changes usually begin with a trial period, and may qualify to progressively otherwise modified for a longer time. This form will also allow you to keep your property more affordable payments.

Refinancing. This is an exclusive option for those homeowners who are current on their mortgage payments, but nevertheless need to benefit from the low interest rates being offered today to lower your monthly payments. The homeowner can refinance today your property, even if the balance due is greater than the current value of your property. Under the program Affordable for Homeowners HARP Refinancing, the owner will be able to refinance and thus qualify for a new mortgage loan that allows affordable monthly payments … To qualify under this application in this program the mortgage loan has I be insured by Fannie Mae and Freddie Mac.

Short Sale / HAFA Short Sale. This is an option which allows you to not qualify options Repayment Plan or Modification of your loan. By applying for and negotiating a short sale, your lender will allow you to sell your property at current market value, even if it sells below the amount you owe on your balance. Under the terms of a short sale, your lender may not go after you for the difference owed. The HAFA grant him a monetary incentive of $ 3,000 and many of the institutions are also offering additional financial incentives to homeowners who qualify to cover the costs of moving.

 “Deed in Lieu of Foreclosure” is another option when Repayment Plan Loan Modification and are options which you may not qualify. In this option, your lender may accept voluntary transfer of title to the property and avoid the impact of foreclosure, as well as the expenses related to the embargo.

For more information, consult a professional with experience in Real Estate Loan Modification and / or short sale, as well as seek advice from a tax professional. To find help for free near you, you can call the Internal Revenue Service (IRS) at 1-800-829-1040. You can also visit the website: www.ayudaparapropietariosdecasas.com.

Using FHA To Purchase Your First Home

Using FHA To Purchase Your First Home

Using FHA To Purchase Your First Home

By Sandy Flores

The Federal Housing Administration (FHA or Federal Housing Administration), which now belongs to the Department of Housing and Urban Development (HUD, for its acronym in English), was established in 1934 to advance opportunities for Americans to be homeowners. FHA works to make home ownership not only a possibility but a reality. With FHA, you do not need a perfect credit history or a job with high salary in order to qualify to purchase a home.

 FHA MortgageActually, FHA does not directly fund your mortgage loan, but provides mortgage insurance for consumers who meet the requirements to obtain a more affordable mortgage. An FHA loan may be a great solution for you, if for example you’re a first time buyer with no bank account, no credit history or your credit score is low, etc., you can qualify for a loan under the FHA program.  FHA does require a minimum of 3.5 percent down on the value of the property you are trying to purchase. Compared to conventional loans, it is a very low down payment.

With the exception of a few additional forms, the application process for FHA loan is similar to a conventional loan. With new automation measures, FHA loans may be originated more quickly than in the past. FHA does not require minimum income. However, you have to check your repayment capacity through their regular income for at least three years.

If you have debt, FHA has no objection as long as their financial capacity allows to include all such obligations when making the request. FHA allows you to use about 29% of their income for housing costs and 41% for housing expenses and long term debt.

If you are renting, you need to see that you are not taking advantage of some of the benefits associated with purchasing a home. Interest rates have dropped dramatically and the value of properties in the market today are very attractive, particularly with a similar monthly payments that renters today are paying.

The best time to buy is determined by you based on all the factors that are currently experiencing. Buying a house has been and remains a good investment especially if you are well informed of your options, alternatives and obligations to make that purchase.

Buying a home is generally the easiest way to accumulate profit. Three out of four people have more equity in their homes than they do in asset retirement plans, mutual funds and savings through equity if they have not removed the short term through a refinance.

Get all the information you can to be more informed and also consider the help of a professional with experience assisting first time buyers, so you can be guided step by step detail on this important process is the purchase of your first home.

Remember that the more guidance and information you have, the more confident you become to make your home buying experience a pleasant and successful and financially successful.

Stay Educated!

The Process of Escrow When Buying and Selling Property

The Process of Escrow When Buying and Selling Property

The Process of Escrow When Buying and Selling Property

 By Sandy Flores

Special to Excelsior

 Buying or selling property requires the transfer and movement of large sums of money.

It’s important that funds and documents are transferred from one party to the other in a neutral, safe and legal way. That’s why the process of escrow is established and developed to protect the buyer, seller and lender.

Whether you’re acting as a buyer or seller, you must ensure that all conditions of the sale are met before the property and money move on into other hands.

Escrow-1-4

The technical definition of escrow is : a neutral party or mediator responsible for the proper performance in the transaction, transfer or lease of a property to another person by delivering a written instrument, money or other items of value to a third neutral person.

This third person holds the money or items for disbursement, when all the specific facts or the execution of a specific condition occurs.

If the transaction depends on the arrangement of new financing then information and documentation of the new loan must be placed into the hands of the escrow agent before the transfer of ownership occurs. A real estate agent can help identify appropriate lending institutions more.

To close the transaction, you must provide the escrow agent with necessary information such as loan documents, state taxes, insurance policies, policies against fire, flood, etc.., if required by the lender, as well as the title insurance policy, the terms of sale and any seller-assisted financing.

At this time, all funds needed to cover the full and absolute payment agreed under the contract must be paid and charges assigned, such as title insurance premium charge, commissions real roots charge, termite inspection, assessment of property, transfer fees, etc., depending on whether you are the buyer or seller in the transaction.

Payments of funds at the close of escrow should be acceptable as personal checks and can cause days of delay in processing the transaction. The title to the property is then transferred under the terms of the escrow instructions and appropriate title insurance is issued.

Things escrow agent can do:

  • Enter as “keeper of the interest in question” in a neutral way, and as an intermediary in the communication of all parties involved in the transaction.
  • Prepare and write escrow instructions for distribution to all parties involved.
  • Responsible for requesting preliminary research to determine the current condition of title to the property.
  • Request a statement by the beneficiary in case of debts or obligations that should be taken by buyer.
  • Meets the requirements of the lender, which are detailed in the contract agreement.
  • Is responsible for receiving funds Buyer to consummate the purchase.
  • Prepare, secure and / or writing drafts and other documents related to escrow .
  • Responsible for apportioning taxes, interest, insurance and rents according to instructions.
  • Disburses funds in accordance with the instructions, including charges for title insurance, settled fees, real estate commissions and all payments required under the contract.
  • Prepares drafts and final reports to the parties, explaining the disposition of all funds deposited in escrow and its exact distribution at closing of the transaction (these are useful for the preparation of the tax return).
What the agent ‘escrow’ can not do:
  • Provide any legal advice.
  • Provide any investment advice.
  • Offer suggestions of how you can take legal title to your home.