California homeowners who refinanced their properties for cash or took out home equity lines of credit will now be allowed to participate in parts of the state's $2 billion foreclosure relief initiative.
Many peopole tapped their rising equity during the boom years, using their homes as ATM's to fuel spending. The California Housing Finance Agency had initially excluded people who used their home equity in such a manner from participating in its "Keep Your Home" initiative, which launched this year with federal funds reserved for the 2008 rescue of the financial system.
But California's high unemployment rate caused the agency to reconsider its policy, agency Executive Director Steven Spears said in a statement.
"In the two short months since the launch of these programs, we have collected information that has helped us identify areas of improvement to make the programs more effective, particularly given the continued high level of unemployment in California," he said.
The California Housing Finance Agency will now allow people who refinanced or took out home equity lines of credit to participate in three of its four Keep Your Home programs.
This includes the agency's biggest inititative, which allocates $875 million as temporary financial help to people who have seen their paychecks cut or have lost their jobs, providing as much as $3,000 a month for six months to cover home payments and associated costs.
It also includes a plan that would give homeowners as much as $15,000 to help them get current on their mortgages. The third program provides moving assistance for people wh0 can't afford to remain in their homes.
These same programs also are being expanded to include mortgages that were originated after Jan. 1, 2009, the agency said. Homeowners who previously applied to the program and were disqualified for that reason can reapply.
Those who refinanced or took out a home equity loan will not be allowed to participate in the initiative's principal-reduction effort, its second-biggest and most controversial program. About $790 million is slated for that program, which would write down the value of an estimated 25,135 "underwater" mortgages, those in which the amount owed is more than what the property would bring in a sale.
Wednesday, April 6, 2011
Tuesday, April 5, 2011
How Eco-Fabulous Can Be Eco-Nomical
Becoming eco friendly is the newest favorite pastime but while everyone has their own reasons for “going green” the underlying theme is green could be your wallet’s ally.
Everything from conserving water and energy to other essential environmentally conscious choices can put more money back in your pocket and homebuyers are considering these options when purchasing a home.
How much money could you be saving?
• Alternative powered homes like solar, wind or geo-thermal are easier to locate and much more affordable today. The initial costs of these systems can be high but when seeking a new home to buy consider streamlining your choices to include homes with alternative generated energy. A top energy saving item is the Owl Energy Monitor; this device shows you how much energy you use in your home and how much its costing you. Take for instance the solar energy systems. Many are portable systems that are utilized in high traffic areas of the home such as the family room. You could cut your energy usage in that room up to 40%. There are many other items that are surprisingly simple to install and again while the initial costs are quite high, looking for a home that is already comprised of these items can save you a bundle. Less money towards the utilities and more disposable income for you wallet.
• Indoor air quality can make a big impact on your medical expenses. Studies show that asthmatics and allergy sufferers have fewer to no breathing problems when using eco friendly materials like green flooring and low VOC paint materials. You can rid your home of most dust mites, allergens and sometimes mold just by disposing of the carpet and installing hard wood flooring. While searching for your new home you can look for greener components that will cost you less for maintenance and help keep your family healthy. A healthier home life means less money spent on medicines, doctor visits and absences from work.
• Traditional appliances have been outsourced with newer energy efficient models. Water heaters can account for 15% of your water bill and if more than 10 years old it will only work at 50% of its capacity. Toilets and shower heads, faucets and other energy efficient appliances that conserve water can be advantageous to a new home owner. While utility bills continue to increase everyone should look for ways to safeguard their money.
New home buyers can realize the positive effects of buying green with a little pre-planning. Looking for ways to save money before selecting your new home is a valid safeguard for future expenses. By seeking out those homes that already have green components installed, you’ll save a tremendous amount of time and money for years to come. And while many people believe going green is just too expensive and time-intensive the way to get around those concerns are by starting out small. Look for those items that will make the deal and save you lots of money in the long run.
Everything from conserving water and energy to other essential environmentally conscious choices can put more money back in your pocket and homebuyers are considering these options when purchasing a home.
How much money could you be saving?
• Alternative powered homes like solar, wind or geo-thermal are easier to locate and much more affordable today. The initial costs of these systems can be high but when seeking a new home to buy consider streamlining your choices to include homes with alternative generated energy. A top energy saving item is the Owl Energy Monitor; this device shows you how much energy you use in your home and how much its costing you. Take for instance the solar energy systems. Many are portable systems that are utilized in high traffic areas of the home such as the family room. You could cut your energy usage in that room up to 40%. There are many other items that are surprisingly simple to install and again while the initial costs are quite high, looking for a home that is already comprised of these items can save you a bundle. Less money towards the utilities and more disposable income for you wallet.
• Indoor air quality can make a big impact on your medical expenses. Studies show that asthmatics and allergy sufferers have fewer to no breathing problems when using eco friendly materials like green flooring and low VOC paint materials. You can rid your home of most dust mites, allergens and sometimes mold just by disposing of the carpet and installing hard wood flooring. While searching for your new home you can look for greener components that will cost you less for maintenance and help keep your family healthy. A healthier home life means less money spent on medicines, doctor visits and absences from work.
• Traditional appliances have been outsourced with newer energy efficient models. Water heaters can account for 15% of your water bill and if more than 10 years old it will only work at 50% of its capacity. Toilets and shower heads, faucets and other energy efficient appliances that conserve water can be advantageous to a new home owner. While utility bills continue to increase everyone should look for ways to safeguard their money.
New home buyers can realize the positive effects of buying green with a little pre-planning. Looking for ways to save money before selecting your new home is a valid safeguard for future expenses. By seeking out those homes that already have green components installed, you’ll save a tremendous amount of time and money for years to come. And while many people believe going green is just too expensive and time-intensive the way to get around those concerns are by starting out small. Look for those items that will make the deal and save you lots of money in the long run.
Thursday, March 31, 2011
Buying a Home with Great Resale Value
Whether you want to purchase a home to live in for several years or to resell quickly, location will certainly play a role in its resale value. Chances are that you may not live in the same home your entire life, so location and resale value may be important considerations when purchasing a home.
The most important step in finding a home with resale value is choosing the right neighborhood. One of the first things you may want to consider when researching a neighborhood is the economic stability of the neighborhood.
A desirable area will:
Another important factor to consider as you try to find the best neighborhoods is the quality of the local school system. Even if you don't have children, you should try to research the closest schools before purchasing a home. This provides a good criterion to factor in of the attitude of the neighborhood and the type of people you’ll be surrounded by. High scores can mean parents are fully invested in their local school system and their children and this translates into how they feel about their homes.
By placing a call to the local school district, you may be able to find out what type of funding area students receive, how well students have performed on standardized tests and whether or not the district will be opening or closing any schools in the foreseeable future. Regardless of where the home is located, the quality of the nearest schools will almost certainly be an important factor for potential buyers when you try to sell the home.
Beyond the schools and local government, there are a number of factors you may want to consider regarding the home's immediate surroundings. For instance, you may want to look for property in neighborhoods where most of the homes are similar in size and style. Additionally, the ideal location for a home is nearest the center, away from busy streets and bordering only other homes, as opposed to businesses, apartment complexes or schools.
Finally, you may want to think about the traffic patterns that surround the neighborhood and whether the street is used as a shortcut between two busy roads.
Though you may be looking for properties that lie in the middle of desirable neighborhoods, you should also consider how convenient the location is for a potential homeowner. The best homes will be located near all the essential businesses and have “walkability” - such as grocery stores, dry cleaners and banks.
In short, the ideal neighborhood will represent the best of worlds, offering residents both privacy and convenience.
The most important step in finding a home with resale value is choosing the right neighborhood. One of the first things you may want to consider when researching a neighborhood is the economic stability of the neighborhood.
A desirable area will:
- Possess a good mixture of residential and commercial districts
- Have jobs for future residents
- Demonstrate consistent economic growth
- Be supported by a strong local government
Another important factor to consider as you try to find the best neighborhoods is the quality of the local school system. Even if you don't have children, you should try to research the closest schools before purchasing a home. This provides a good criterion to factor in of the attitude of the neighborhood and the type of people you’ll be surrounded by. High scores can mean parents are fully invested in their local school system and their children and this translates into how they feel about their homes.
By placing a call to the local school district, you may be able to find out what type of funding area students receive, how well students have performed on standardized tests and whether or not the district will be opening or closing any schools in the foreseeable future. Regardless of where the home is located, the quality of the nearest schools will almost certainly be an important factor for potential buyers when you try to sell the home.
Beyond the schools and local government, there are a number of factors you may want to consider regarding the home's immediate surroundings. For instance, you may want to look for property in neighborhoods where most of the homes are similar in size and style. Additionally, the ideal location for a home is nearest the center, away from busy streets and bordering only other homes, as opposed to businesses, apartment complexes or schools.
Finally, you may want to think about the traffic patterns that surround the neighborhood and whether the street is used as a shortcut between two busy roads.
Though you may be looking for properties that lie in the middle of desirable neighborhoods, you should also consider how convenient the location is for a potential homeowner. The best homes will be located near all the essential businesses and have “walkability” - such as grocery stores, dry cleaners and banks.
In short, the ideal neighborhood will represent the best of worlds, offering residents both privacy and convenience.
Wednesday, March 30, 2011
Screening for Quality Tenants to Rent your Property
One of the most stressful elements of managing your investment property is dealing with difficult tenants. Between killing your cash flow with late rental payments, and causing financial nightmares via the damages you continuously have to repair (and let’s not forget the small fortune you spend on evicting bad tenants); why do we go through all the trouble?
What most people don't realize is that the vast majority of tenant-related problems can be eliminated by simply avoiding bad tenants altogether with thorough screening. Here are a few tips to improve your screening process.
The most essential piece of the screening process is the application. Provide a thorough application to prospective tenants that include all the pertinent information you would like to know, within the legal limits of course. Make sure that the application is completely filled out, and that you have a copy of the applicant's valid driver's license and a second picture ID and check that the name and information on the ID matches that on the application.
Next, you'll have to investigate the applicant's financials. Request the past three months' pay stubs to be sure they can afford your rent. Call the applicant's employer to verify that they work there, that there are no problems related to the applicant, and that there's no reason to believe the applicant will be unemployed in the near future. Also, request their three most recent bank statements.
While this is not always required, the applicant should be willing to provide them; if not, then you have a pretty good reason to be wary. It is also important to check the applicant's credit and criminal history. A credit score above 600 is usually considered reasonable for a tenant, and you want to steer clear of anyone with a history of evictions or criminal behavior.
On the application, make sure you include a space for the applicant to provide information about previous rental engagements including landlord contact information and rental amount.
This is important so that you can call the previous landlords to inquire about the tenant. Use caution when dealing with contacts, as many applicants use their friends to pose as landlords and vouch for them. One good method of weeding these applicants out is to ask the "landlord" about the rent, quoting a price other than that provided by the applicant. If the person you are speaking to doesn't correct you, then they were probably not the landlord. Additionally, inquire as to whether or not the tenants were able to get their security deposit back or was it held because of damage. This will give you a good idea about how the prospective will treat your rental.
You should also have any and all parties residing in the rental complete an application.
If you adhere to these methods responsibly, selecting quality tenants for your properties should not be a problem.
What most people don't realize is that the vast majority of tenant-related problems can be eliminated by simply avoiding bad tenants altogether with thorough screening. Here are a few tips to improve your screening process.
The most essential piece of the screening process is the application. Provide a thorough application to prospective tenants that include all the pertinent information you would like to know, within the legal limits of course. Make sure that the application is completely filled out, and that you have a copy of the applicant's valid driver's license and a second picture ID and check that the name and information on the ID matches that on the application.
Next, you'll have to investigate the applicant's financials. Request the past three months' pay stubs to be sure they can afford your rent. Call the applicant's employer to verify that they work there, that there are no problems related to the applicant, and that there's no reason to believe the applicant will be unemployed in the near future. Also, request their three most recent bank statements.
While this is not always required, the applicant should be willing to provide them; if not, then you have a pretty good reason to be wary. It is also important to check the applicant's credit and criminal history. A credit score above 600 is usually considered reasonable for a tenant, and you want to steer clear of anyone with a history of evictions or criminal behavior.
On the application, make sure you include a space for the applicant to provide information about previous rental engagements including landlord contact information and rental amount.
This is important so that you can call the previous landlords to inquire about the tenant. Use caution when dealing with contacts, as many applicants use their friends to pose as landlords and vouch for them. One good method of weeding these applicants out is to ask the "landlord" about the rent, quoting a price other than that provided by the applicant. If the person you are speaking to doesn't correct you, then they were probably not the landlord. Additionally, inquire as to whether or not the tenants were able to get their security deposit back or was it held because of damage. This will give you a good idea about how the prospective will treat your rental.
You should also have any and all parties residing in the rental complete an application.
If you adhere to these methods responsibly, selecting quality tenants for your properties should not be a problem.
Monday, March 28, 2011
You Still Need a Realtor to Buy Direct from the Builder
It always seems simple to walk into a model home and deal directly with the builder but that’s not the best idea. More people are taken advantage of when alone than with a real estate agent. All the paperwork you’re required to sign, disclosures, clauses and most important releases.
When you sign a release you practically give up your rights; it could mean forfeiting your right to keep your deposit or setting the settlement date in stone for you but a contingency for the builder.
Every page you initial could be detrimental in the end if you are not represented professionally. Sure, there are laws and guidelines that say you are protected from predatory requirements – RESPA Laws – however if you don’t know how to apply those guidelines to your transaction how do you know if you’re being taken for thousands of dollars?
Many homebuilders offer incentives as a way to entice you to purchase their home however those incentives often mean you must use their in-house lenders and their title escrow companies; this is far from the truth because you can use whatever lender or title escrow company you choose and in the end, the builder cannot tie the incentives to a specific lender.
Are your discounts really discounts or are they embedded somewhere in your sales package? Often a builder will show you all the discounts and incentives they’re providing to you but the loan package is packed with excessive and useless fees that make up for all those discounts they’re giving you. This is why you need a realtor to accompany you for any real estate transaction. It may seem like a simple decision to walk into a model home and deal with the salesperson but it could cost you thousands of dollars.
That salesperson works solely for the builder and I bet you’ll sign an acknowledgement of this statement. They must disclose certain items to you but again they work solely for the builder and without professional representation you are on your own to learn the ropes.
For any real estate transaction take advantage of all the knowledge a real estate agent or broker has to offer. You’ll avoid many of the traps home builders have waiting for you.Wednesday, March 16, 2011
Do I Really Need a Realtor
Everyone is looking for ways to save money during this recession including DIY everything. And although times look bleak there are many buyers out there ready to purchase your home. Question is can you go it alone or handle everything yourself?
Many homeowners believe they can go it alone and find themselves looking for a professional to save them.
With the advice of a real estate agent you’ll have a much better chance of selling quickly; recession or not.
But there are several crucial reasons for using a real estate agent.
First off, a real estate agent is trained in keeping an eye on how the market is moving and responding to different circumstances. This will allow them to tell you the important information as it develops. If you were selling your property by yourself you would be on your own as far as figuring out what a recession is doing to the real estate market including competition in your own backyard and sales and trends.
Second and most important, a real estate agent knows all the legalities, requirements and guidelines the buyer and seller must adhere to. You have no idea how many legal forms you are responsible for. You wouldn’t want to get caught with a voided contract after laying out tons of cash because you forgot a key item, would you? How about getting stuck with a one-sided contract in favor of the buyer?
Additionally, in order to improve your odds you will want a real estate agent helping out with all marketing related tasks. For instance, your agent will be able to schedule open houses, send out flyers, add your home to multiple websites, call clients and other agents in the market, and much more. These are all marketing tasks that need to be done successfully, and during a recession it is much better to use a real estate agent.
Sure, there are many ways to save during this recession but holding back on professional services during the sale of your home is definitely not one you want to undertake.
Many homeowners believe they can go it alone and find themselves looking for a professional to save them.
With the advice of a real estate agent you’ll have a much better chance of selling quickly; recession or not.
But there are several crucial reasons for using a real estate agent.
First off, a real estate agent is trained in keeping an eye on how the market is moving and responding to different circumstances. This will allow them to tell you the important information as it develops. If you were selling your property by yourself you would be on your own as far as figuring out what a recession is doing to the real estate market including competition in your own backyard and sales and trends.
Second and most important, a real estate agent knows all the legalities, requirements and guidelines the buyer and seller must adhere to. You have no idea how many legal forms you are responsible for. You wouldn’t want to get caught with a voided contract after laying out tons of cash because you forgot a key item, would you? How about getting stuck with a one-sided contract in favor of the buyer?
Additionally, in order to improve your odds you will want a real estate agent helping out with all marketing related tasks. For instance, your agent will be able to schedule open houses, send out flyers, add your home to multiple websites, call clients and other agents in the market, and much more. These are all marketing tasks that need to be done successfully, and during a recession it is much better to use a real estate agent.
Sure, there are many ways to save during this recession but holding back on professional services during the sale of your home is definitely not one you want to undertake.
Tuesday, March 15, 2011
California Foreclosure Update
1. Foreclosure filings in California dropped to levels not seen since since late 2008 when governmental intervention temporary slowed the foreclosure filing process.
2. Notice of Default filings dropped 12.8 percent month-over-month and Notice of Trustee Sale filings fell 12.5 percent from the prior month.
3. The foreclosure filing percentage decreases are more moderate when adjusted on an average daily basis due to the fewer filing and trustee sale days in February with a 3.1 percent drop for Notice of Default filings and a 2.8 percent decline for Notice of Trustee Sale filings.
On a year-over-year basis foreclosure filings were down as well, with Notice of Default filings down 29.6 percent and Notice of Trustee Sale filings falling 17.0 percent from February 2010. Acivity on the courthouse steps slowed with fewer sales leading to a 24.5 percent decrease in sales Back to Bank and a 20.3 percent drop in properties purchased by Third Parties, typically investors. For the first time, Third Party investors saw a drop in the average Time to Resell a property, down 3.1 percent to 156 days.
2. Notice of Default filings dropped 12.8 percent month-over-month and Notice of Trustee Sale filings fell 12.5 percent from the prior month.
3. The foreclosure filing percentage decreases are more moderate when adjusted on an average daily basis due to the fewer filing and trustee sale days in February with a 3.1 percent drop for Notice of Default filings and a 2.8 percent decline for Notice of Trustee Sale filings.
On a year-over-year basis foreclosure filings were down as well, with Notice of Default filings down 29.6 percent and Notice of Trustee Sale filings falling 17.0 percent from February 2010. Acivity on the courthouse steps slowed with fewer sales leading to a 24.5 percent decrease in sales Back to Bank and a 20.3 percent drop in properties purchased by Third Parties, typically investors. For the first time, Third Party investors saw a drop in the average Time to Resell a property, down 3.1 percent to 156 days.
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