Realtor Open Houses & Chinese Restaurants

Every Realtor hates when that happens. LOL!

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Where to Buy a Home If You Haven’t Saved for a Big Down Payment

If you’ve been saving to make a down payment on a home, you may not have to put money aside for as long as you’d thought, thanks to the average required down payment being much lower in some markets. And, according to recent research, the average required initial mortgage payment is only getting lower for hopeful homeowners.

For conventional 30-year fixed-rate mortgages in the first quarter of 2016, average down payment percentages ebbed slightly to 16.64%. This figure is down from 17.46% in the fourth quarter of 2015 and 16.98% in the first quarter of 2015. The average down payment was subsequently down over the same time period from $51,721 to an average $49,839, but was up from the year-ago figure of $44,007.

These figures, according to the latest LendingTree national down payment report, also indicate the average down payment for all purchase mortgages such as FHA, VA, non-prime and jumbo mortgages in 2Q/16 was $44,058, accounting for 12.18% of the home’s purchase price. And regarding just FHA mortgages, the average down payment was 8.74% ($16,998), a slight increase from the year ago figure. Meanwhile, the average 1Q/16 jumbo mortgage down payment was 23.89% ($194,950).

Complimenting its findings, LendingTree also released the markets where you can find this low-down-payment real estate. Below are the 10 cities with the lowest down payments as a percent of total mortgage.

Meanwhile, if you want to avoid having to put down a high down payment, don’t look to put down roots in New York, where the average down payment is 19.74%, or $78,979.51. This was followed by California (19.56%/$84,728.78), Hawaii (19.44%/$58,404), New Jersey (19.29%/$64,579) and Washington D.C. (18.50%/$98,440.09). You may notice the actual average down-payment sum doesn’t always correspond with the average down payment percentage, having to do with real estate prices. But, generally, places with higher home costs also demanded a higher down payment percentage.

Regardless of how much money you have saved, lenders will look at your credit report before granting a mortgage loan. Take a look at your credit reports and view two of your credit scores for free on Credit.com. Doing so will help you know if you need to address any errors on your report before applying for a mortgage. And doing what you can to improve your credit score before you apply will not only save you money in interest over the life of a loan, it could help you afford more house as well.

Source: Realtor.com, Credit.com
http://www.realtor.com/advice/buy/where-to-buy-a-home-if-you-havent-saved-for-a-big-down-payment/?iid=rdc_news_hp_carousel_theLatest

My New Listing on 2087 Limewood Dr, San Jose - Open House Sat, April 30 & Sun, May 1st from 1-4:30pm

OPEN HOUSE

Saturday, April 30th 2016 from 1pm to 4:30pm

Sunday, May 1st 2016 from 1pm to 4:30pm

A charming North San Jose home you would be proud to own.  This well maintained home was remodeled in 2012 and features a great floor plan, spacious bedrooms, two full bathrooms, dual pane windows, dual facing fireplace and fresh interior paint.  In addition, recently added an alluring driveway, lawn with automatic sprinklers & patio. Conveniently located on a quiet street close to schools parks, freeways, the Great Mall and the future BART Station.

Property Features:

3 Bedroom

2 Baths

Living Area 1,300 Sq. Ft.

Lot Size: 6,099 Sq. Ft.

Built: 1964

Double Pane Windows

Laminated Flooring in Kitchen

New Interior Paint

New Patio

       New Driveway

Landscaping

Laneview Elementary

    Morrill Middle School

Offered at: $799,000

 

Mimi Wang, REALTOR®
GRI, CPRES, SRES, CIPS, CDPE, HAFA, REO
BRE #: 01775814
(408) 569-3808
mimi@mimihomes.com | www.MimiHomes.com
10420 S. DeAnza Blvd., Cupertino, CA. 95014
Fluent in English, Mandarin, Cantonese and Vietnamese
Your REALTOR® for Life!

Buy a Home in Silicon Valley for $25,000—but There’s a Catch

Anyone who lives here in the Silicon Valley knows housing (both renting & buying) comes at a premium. Last year I think it was when I heard the story of a guy in Mountain View who was renting a tent in his backyard for $800 a month, and I thought that was bad, but now I heard about this. So apparently a guy will rent a van, just to Google employees for $30.00 a day to sleep in their parking lot, since Google apparently doesn't pay some employees enough to afford a place. The employee can use their restroom, cafe, etc. provided they have a place to sleep - that's where the van comes in. Anyhow, seeing things like this speak to the high cost of housing here in the valley.



Psst … want your own place in Silicon Valley for a mere $25,000? Then you should meet Robert Allen, an entrepreneur who’s retrofitted six vans with beds and kitchenettes. His target clientele? Google employees.

This makes total sense: The tech behemoth, based in Mountain View, is justly famous for its amenities that encourage employees to linger in the office around the clock. With cafeterias dishing up a range of delicious free food throughout the day and top-notch exercise facilities where you can shower, who needs to go home for anything but sleep?

That’s where Allen’s vans come in. He initially rented the vans to travelers staying a night or two, via his site Go-Tel.net (not hotel—get it?). But his latest Craigslist ad woos cash-strapped Googlers with the following pitch: “Eat Google food, use their gym, and sleep in the van (CHEAP).”

There is a precedent for this—in one highly publicized case, a 24-year-old software engineer opted to sleep in a box truck in the parking lot at Google to  save on housing costs. The company’s reaction? Shrug.

The vans rent for $30 per day, or you can buy one outright for $25,000. If you’re not lucky enough to be employed at Google, Allen’s ad says, “you tell me where you would like it parked and I do the research to make that happen” (which we infer/hope means he finds legal parking spots for you).

Sure, living in a van sounds cramped and uncomfortable, but it’s undeniably a deal, considering that the cheapest Mountain View apartments on realtor.com® start at $1,625.

Here’s a pic of the place, located at 1970 Latham St.:



And here’s a peek at what we presume is the kitchen and, um, the rest. Cozy isn’t it? But hey, if you’re working around the clock at Google and taking advantage of its immense cafeteria and other amenities, all you really need at your crash pad is a few microwaveable meals in your freezer for the weekends. Assuming there’s room for a microwave, that is.



As for the cheapest house you can actually buy in Mountain View, that’s a whole different animal. The cheapest listing on realtor.com is a mobile home at 191 E El Camino Real, Space 210, going for $99,000.

And according to the listing, it “may need to be a cash deal.” You may even need to bring it in a suitcase.

Once you see the reality of real estate in Mountain View, a van for $25,000 starts looking pretty sweet, doesn’t it?

Source: Realtor,com, Judy Dutton

http://www.realtor.com/news/trends/buy-home-silicon-valley-for-25000/?iid=rdc_news_hp_carousel_theLatest

RELATED:
Camping Tent Rents at $900 a Month in Mountain View
Million Dollar Shack: Trapped in Silicon Valley's Housing Bubble

Is Your Home the One Buyers Want?

When it comes time to sell your home, whether you’ve lived there for three years or 30, you need to see it as a product for sale. And just like an item on a store shelf, you want your home to stand out from the competition.

Of course, your feelings and emotions about your home — and all of the memories you made there — may make it difficult to detach and view your home as a product. But sellers who quickly transition away from the emotional connection and into investment mode will reap the financial benefits many times over. Homes that go into contract quicker and with few (if any) price reductions ultimately sell for more money. And isn’t that every seller’s goal?

What’s on buyers’ wish lists

Homes that sell quickly probably have many of the features today’s buyers find desirable. Smart retailers try to understand better what consumers want, and then deliver to them. Home sellers should do the same.

When you’re preparing to sell your home, consider small renovations, updates, cleaning and even some light staging. I’ve seen sellers make significant upgrades to their home before listing, leaving them to question if they actually want to move.

Today’s buyers look for move-in ready and turn-key homes. The more bells and whistles, the better.

Focus on kitchens and baths

It’s a pretty well-established fact that kitchens and baths sell a home. If your kitchen or bathroom is tired or outdated, consider modest upgrades that pack a punch.

Painting cabinets white gives the kitchen a clean and fresh look. Consider new stone countertops like quartz or granite. And replace old faucets with shiny new ones.

Spending a modest sum can reap incredible benefits — tenfold.

If you’ve got it, flaunt it

Research shows that certain features help sell a home faster. Even if you don’t have time for renovations, you might luck out and already have some of the items on buyers’ wish lists.

For example, subway tiles in the kitchen or bathroom, barn doors, and craftsman features are proven to help homes sell faster. If your home has these, play them up, because today’s buyers want them.

Just like companies figure out the next hot car, handbag or shoe for their respective industries, smart home sellers must know their audience and market their product to meet customer demand.

When it comes time to sell, consider your buyer, and try hard to make your home into a top-notch product.

Source: Zillow Porchlight, Brendon Desimone
http://www.zillow.com/blog/the-home-buyers-want-196607/

VIDEO - 5 Reasons Your Home Isn't Selling

5 Reasons Your Home Isn't Selling

Mortgage Payments When You Are In Financial Trouble

None of us can appreciate -- nor anticipate -- the future. Although we always believe it will never happen to us, once in a while, calamity strikes, and then we have to address these very hard and difficult questions.

You own a house, with a sizable mortgage. Suddenly, you (or your spouse) lost their job, and you cannot make the monthly mortgage payments.

There are a number of options you should immediately consider. However, the very first thing you should do is to talk with your lender. Don't just discuss your issues with a low-level employee. Try to go as high up the corporate ladder as you possibly can. And don't be afraid to be honest. Legitimate mortgage lenders will try to work with you, since they don't want to evict you and have to own and carry your house until they sell it.

Here are some of the options which are available to you.

1. Temporary indulgence. Here, the lender, at your request, may grant you a short period of time -- usually not more than three months -- in order to cure any delinquency. However, this is merely temporary relief, and by the end of that short period of time, the borrower must be completely current.

2. Repayment plan. Here, the borrower is given a fixed period of time -- usually not to exceed one year -- in which to bring the mortgage current by immediately making and continuing to make payments in excess of the monthly mortgage payment. It is important to get this repayment plan reduced to a written document, signed by both the lender and the borrower.

3. Special forbearance relief agreement. Here, the regular monthly mortgage payments are suspended or reduced for a period of up to eighteen months from the due date of the first unpaid monthly installment. At the conclusion of this relief period, the regular payments must be resumed; additionally, a comprehensive plan must be agreed upon for the repayment of the amount that has been suspended.

In this case, the lender will make a determination that the default is curable, and based on the current financial and appraisal data, the lender must be satisfied there is a likelihood that the borrower will be able to comply with the repayment plan. Clearly, the burden will be on you to document and justify the plan, so as to satisfy the lender's requirements.

If you are in the military, the Soldier's and Sailor's Relief Act provides various forms of relief, but you should check with your military or civilian lawyer to determine your eligibility under that Act.

4. A short sale. Here, the lender will authorize you to sell the property for what it is really worth, and the lender will get all the proceeds. Let us look at this example. The house can probably be sold at $395,000, but the mortgage is $425,000. The lender may allow you to sell the property for $395,000, giving a real estate broker a commission. The lender gets all the remaining sales proceeds; you get nothing from the sale. However, under this "short sale" approach, you will be relieved of your mortgage. In some cases -- depending on your financial situation -- the lender may want you to pay a portion of the mortgage shortfall; this depends on the lender and is clearly negotiable.

5. Deed in lieu of foreclosure. This is another remedy that may be available to you. Under this arrangement, you deed your property to the lender (or to whomever the lender designates) and this is in lieu of (instead of) foreclosure proceedings. This arrangement is an acceptable and customary procedure when, for example, the borrower is deceased and the estate is willing and able to transfer the property, or the borrower has filed Chapter 7 bankruptcy, and the trustee has abandoned interest in the property.

6. Foreclosure. Here, the lender will sell your property at auction (or in some states at the Courthouse), and you will lose your home and your credit rating (whatever is left of it. Legitimate lenders do not want to foreclose. and they will reluctantly start the process if all else has failed.

7. Bankruptcy. Your final option, of course -- which should be used only as a last resort -- is for you to file bankruptcy. When someone files for bankruptcy, there are many protections that automatically apply from the day the bankruptcy petition is filed with the Bankruptcy Court. The most important protection under the bankruptcy law is known as "the automatic stay." If you are in bankruptcy, no legal action can be taken against your house unless the lender requests the Court for permission to "lift the stay."

You cannot ignore your financial problem, hoping you will win the lottery or find some other immediate source of funds. The level of your cooperation is the most significant aspect that will determine how willing the lender is to similarly cooperate.

Source: RealtyTimes, Benny L. Kass
http://realtytimes.com/consumeradvice/mortgageadvice1/item/43937-20160420-mortgage-payments-when-you-are-in-financial-trouble

Can You Get a Home Loan Without a Full-Time Job?

When Joy and Bryant Wingfield started shopping for a mortgage in 2011, they were turned down left and right. The reason? Bryant didn’t have a full-time job, working sporadically as a guard for a security company.

“One week, he’d freelance for them, and the next, he wouldn’t work at all,” Joy explains. Although she was working full-time, as a couple they didn’t have the steady flow of income that lenders like to see. “Due to these income fluctuations, we were denied mortgages when we first applied.”

It’s a common scenario: One-third of Americans earn their paycheck as Uber/Lyft drivers, freelancers, TaskRabbits, sole business proprietors, eBay sellers, or contract workers. Many of them want to buy a home, but lenders can be leery of extending credit to people who lack full-time employment.

Nonetheless, eventually the Wingfields did manage to nab a $216,000 home loan and purchase a three-bedroom condo in Union City, NJ. So what’s their secret—and how can other home buyers follow in their footsteps? Read on to learn how to land a home loan without full-time work.

Flaunt your track record

Prove to your would-be lender that the real estate investment you’re eyeing is safely within your already established budget.

“Say you’ve been renting for $1,200 a month,” says Rocke Andrews, president of the National Association of Mortgage Brokers. “Say your proposed mortgage plus maintenance brings your monthly housing costs to $1,050. Show you’ve been paying $150 more in rent—and have been doing so consistently over time.” Rent stubs—and a letter from your landlord confirming that you’ve covered your expenses promptly and in full—will bolster your case.

The same goes for documentation from past and previous lenders. The Wingfields, for instance, provided proof that they had paid their student loans, credit-card bills, insurance invoices, and car payments in full and on time.

“Don’t just show you have the ability to cover your debts,” says David Luna, a Salt Lake City mortgage broker and the former commissioner of real estate for the state of Utah. “Pay ahead of schedule if you can, proving you’re willing to make transactions as easy on your lenders as possible.”

Show savings

In order to qualify for a mortgage, you need to prove not only that you have a steady income and a solid credit history, but a generous nest egg in reserve.

“Consider that scenario in which buying a new home would cost you $1,050 per month,” says Andrews. “At a minimum, lenders will want to see that you have a reserve of two months’ expenses, or $2,100. But ideally, you want to have at least six months’ expenses—or $12,600—in assets that you can readily liquidate.” The bigger your safety net, the greater the chances that potential lenders will let your mortgage application fly.

Validate your income

“At a minimum, you want to show that you’ve been doing what you do to earn money—and doing it successfully—for two solid years running,” says Andrews. You also want to demonstrate that your income is rising instead of declining.

“Aim to show that in 2015, you earned more than you did in 2014, and that in 2014, you earned more than in 2013,” says Luna. “Get tax forms and other documents that show your income inching higher and higher for as many years running as possible.”

Get a co-signer

If you can’t land a mortgage on your own, consider asking a family member or business associate to co-sign with you. As a freelancer or contract worker, do you have employers with whom you’ve developed longstanding relationships? Enlist them to help your case. Submit contracts showing you have guaranteed work from them in the future (noting that the longer those contracts stand, the better).

“Also get letters from them stating that you’re reliable and reputable, and that they don’t expect any declines in your income or work for them in the future,” says Andrews. Wingfield’s husband got just such a letter from the supervisor at his security firm (where he eventually landed his current full-time job).

Sum it all up

When you’re done compiling (and carefully proofreading) all the documentation you need to supply, cap it off by writing a letter that summarizes your case.

“Here, you want to connect the dots,” says Luna. “Reaffirm your stability, ability, and willingness. State your application’s strengths. And keep it brief. Three-quarters of a page should do.”

Keep trying

Failed to secure the first home loan for which you applied? Don’t give up hope.

“The lender we thought would be a sure bet—our family credit union, where we had longstanding savings accounts and credit cards—turned us down flat,” says Wingfield. “We managed to land a mortgage not by going with them or with a traditional bank, but by finding a lending company that specialized in helping borrowers whose situations were outside the normal box.” Your real estate broker—and nonprofit agencies in your community that focus on helping homeowners—can steer you toward lenders who are right for you.

“We did what we needed to make our case,” says Joy. “We showed pay stubs, back tax forms, the works. Our mortgage approval took three months, but we got through it because we did our homework—and did it right.”

Source: Realtor.com, Molly Ginty
http://www.realtor.com/advice/finance/get-home-loan-without-full-time-job/?iid=rdc_news_hp_carousel_theLatest

What type of homes are selling in this market?

Your Debt-To-Income Ratio Can Tell You How Much Home To Buy

DTI Reveals True Home Affordability

Credit scores often get the biggest headlines.

Your three-digit FICO score is a key factor for qualification and mortgage rates.

But there’s another number that does a better job at telling you what you can afford: your debt-to-income ratio, or DTI.

Your DTI is a comparison between your monthly payments and your income. A low DTI denotes you are buying a home well within your means.

Lenders want to see that you are taking on a sustainable housing payment. That’s good for you and them.

Knowing your DTI before you apply is by no means necessary, but it can help buyers form an educated estimate of their price range.

Many buyers will discover that homes in their area are very affordable as they look at their income, current payments, and future housing costs to determine their DTI.

No Two Buyers' Payments Are Alike

The lender never looks at the amount of debt independent of the applicant’s income.

A certain amount of payments can be too much for one consumer and no burden at all for another.

Think of it this way: $4,000 worth of monthly debt obligations are a real problem for consumers who earn a gross monthly income of just $6,000. But that same $4,000 of debt isn’t nearly as problematic for consumers who earn $18,000 a month.

Figuring your debt-to-income ratio isn’t difficult. Divide your recurring monthly debt obligations into your gross monthly income.

For instance, you would have a 25% DTI with an income of $10,000 and payments of $2,500.

While the formula is easy, it helps to think like a lender when you calculate your debt payments.

Calculate Your DTI Like A Lender

Mortgage lenders are the final decision maker. It’s important to understand how they calculate DTI.

The lender will look at your recurring payments for anything financed, such as cars, student loans, and credit card purchases. If you have monthly child care or alimony payments, these also count as part of your recurring monthly debt.

They will not include non-debt monthly payments such as utility payments, cell phone bills, and gym memberships.

If you’re not sure which of your bills the lender will consider debt payments, obtain a free credit report. Consumers have access to a free report once per year from each of the three major bureaus, Transunion, Experian, and Equifax.

Go through the report and add the payment amounts listed. This is exactly how the lender will calculate your non-housing payment total.

Estimate All Parts Of Your Future Housing Cost

After calculating your non-housing debt, the lender will estimate your new monthly housing expenses.

Your future payment amount will consist of a number of pieces.

• Principal
• Interest
• Mortgage insurance, if any
• Property taxes
• Homeowner’s insurance
• Homeowner association (HOA) dues

You can determine your principal and interest payment with any mortgage calculator. Some even estimate your mortgage insurance cost. Property taxes can vary widely by region of the country. Search for home in your area and price range on a real estate website. Each listing should state the amount of taxes, which you can use for your estimate.

Homeowner’s insurance can be anywhere from $50 to $200 or more per month, but for the typical house and borrower, should be around $75.

HOA dues almost always apply when buying a condo, but often when buying a single-family home in some neighborhoods too. Search for homes in desired neighborhoods to check common HOA dues, if any.

Use All Your Income

Most U.S. workers’ paychecks bear little resemblance to their actual income.

A large amount is removed for income taxes, Medicare, and Social Security taxes. In addition, many workers voluntarily contribute to a 401k plan and pay medical insurance premiums too.

The end result is take-home pay that is significantly less than gross income.

Fortunately, the lender will use all your income to calculate your DTI.

In addition, you can also include monthly rental income, any alimony payments you receive, pension income, disability income and many other payments you receive each month.

However, lenders may calculate these income types differently than you would. For instance, only 75 percent of your rental income “counts” toward qualifying income.

Likewise, self-employed income can be difficult to calculate on your own. The lender will deduct any write-offs from total business income.

The point is, be conservative when estimating non-salaried income. Lenders will provide an income analysis as part of the pre-approval process. If you are self-employed, this may be the only way to know your lender-calculated income.

Many Exceptions To The 43% DTI Rule

When applying for a mortgage loan, you want to aim for a debt-to-income ratio that is lower than 43 percent. That’s because 43 percent is the highest DTI many loan types can hit and still be considered a Qualified Mortgage.

A Qualified Mortgage is one that the Consumer Financial Protection Bureau considers sustainable by the buyer. The rule came out of the 2010 Dodd-Frank Act as an effort to protect consumers after the housing downturn of last decade.

But the forty-three-DTI rule is by no means hard-and-fast.

For instance, Fannie Mae’s new program, HomeReadyTM, allows a 50 percent DTI when non-borrower household members are contributing to homeownership costs.

Likewise, FHA loans and VA home loans which receive approvals are considered Qualified Mortgages despite their DTI.

Borrowers who do apply for a loan with a 43 percent cap have options if they are above the DTI limit.

They can target a lower-priced home, which would reduce their estimated new monthly mortgage payment and debt-to-income ratio.

Home buyers can also refinance their auto loan, or consolidate student loans and credit cards to reduce the monthly payment. The lender does not factor in loan balance, but only the minimum amount due each month. Reducing payments helps, even if loan balances don’t change.

Let Your Budget Make The Decision

The key is to get your debt-to-income ratio to a level that is not only attractive to lenders but is also comfortable for you. Your lender might approve you with a debt-to-income ratio of 40 percent, but you might not feel comfortable with monthly obligations that consume that much of your monthly income.

Your payment comfort level may be much lower than the housing expense the lender approves.

Before you apply for a mortgage, take the time to roughly calculate your debt-to-income ratio. This number will tell you plenty about how much of a monthly mortgage payment you can comfortably afford.

And don’t be afraid to be more conservative when it comes to your debt-to-income ratio. Enjoying homeownership starts with sustainable, comfortable costs.

Source: The Mortgage Reports, Dan Rafter
http://themortgagereports.com/20054/your-debt-to-income-ratio-can-tell-you-how-much-home-to-buy

San Jose City Council Lowers Rent Control Cap to 5 Percent

In a split decision that closed out a marathon meeting, San Jose’s City Council lowered a cap on rent hikes for the first time in four decades.

The hearing, which began Tuesday and ended around 2am Wednesday morning, ended with a 6-5 vote to lower a cap on annual rent hikes from 8 to 5 percent. Council members Raul Peralez, Magdalena Carrasco, Donald Rocha, Pierluigi Oliverio and Ash Kalra opposed the move.

More than 500 people packed the council chambers and a staggering 200 signed up to speak. Landlords implored city leaders to leave the city’s rent control law alone or risk putting them at financial risk. Renters urged otherwise, saying soaring rents are literally pricing them out of their homes.

“This is an emergency,” Andrew Bigelow, a member of Silicon Valley De-Bug, told the council. “We cannot place the weight of a broken system on the impoverished. We cannot place the weight of this city on the poor.”

David Yin, a landlord and engineer, said that as an immigrant who arrived to San Jose in 1996, he had to work harder than the average person. Five years ago he bought an apartment complex, he said, which forced him to become a jack-of-all-trades to keep the place up.

“Keep in mind that all people deserve fair treatment,” he said from the podium.

During the hours of testimony, people shared personal accounts of sudden evictions and families divided by forced displacement. One man said he had to move to the Central Valley—the closest place he could afford rent—and left his son behind to finish high school.

According to the Mercury News, a real estate broker camped outside of City Hall during the meeting trying to talk landlords into selling their properties.

Local rent control applies only to units built before 1979, which makes up about one-third of the city’s apartment stock. State law prevents the city from extending rent control rules to apartments built any later. The council’s decision imposes a 5 percent cap, but it also allows landlords to bank unused increases and pass along building improvement costs up to 8 percent the following year.

The plan includes an anti-retaliation measure to protect tenants from eviction if they ask for improvements or report a problem to code violation. It also creates a rental registry to enforce the ordinance, a pilot mediation program and eliminates an option for landlords to pass off debt service to renters.

The compromise upset tenants and landlords alike. Property owners hoped the city would leave the decades-old rent control ordinance intact, while tenants wanted rent increases tied to inflation similar to several major cities.

“We were not satisfied with the result,” said Sandy Perry, an affordable housing advocate. “There were some incremental improvements, but not anywhere near what’s needed.”

Susan Price, herself a landlord, said she wants the city to not only lower the cap on rent hikes, but to adopt a requirement for “just cause” evictions.

“The city has to be bolder,” she said.

City officials will consider more changes to San Jose’s rent laws in the near future. Because this week’s meeting slogged on to such a later hour, the council deferred until May a proposal on an urgency ordinance that would temporarily freeze rent spikes.

Also up for consideration next month is a policy to curb demolition of rent-controlled apartments and another to pay relocation costs for tenants of units converted to market-rate housing.

Taking a cue from San Francisco, Councilman Manh Nguyen said the city should pass a $1 billion bond to build affordable housing. But his 11th hour memo wasn’t on the agenda, so his colleagues had to table a discussion about the idea.

Nguyen said rent control won’t fix the affordability crisis and the real solution is to build more housing. California Apartment Association (CAA), which makes up the landlord lobby, has repeated that message.

“Last night, the council found what some consider compromise, but not a solution to our housing challenges,” CAA spokesman Joshua Howard said. “If the city is serious about dealing with the housing crisis, they should do something now and do something big as Council member Manh Nguyen has proposed. Nguyen offers a community wide solution to a community wide issue.”

Tenant advocates agree, but they want a range of solutions for a city where more than half of renters pay more than a third of their salary to keep roofs over their heads.

“We all want affordable housing,” Price said. “But we can’t get that right away. In the meantime, we need rent control and better tenant protections.”

In other Bay Area cities, residents are taking rent control measures straight to voters. There's a chance this could happen in San Jose, too. But with the deadline for signature gathering almost here, that may not happen for another year.

Source: San Jose Inside, Jennifer Wadsworth
http://www.sanjoseinside.com/2016/04/20/san-jose-city-council-lowers-rent-control-cap-to-5-percent/

Bay Area home sales in March: up from February, down from a year earlier

Bay Area home sales rose markedly from February to March as 6,754 homes sold across the nine counties, a 37 percent month-over-month increase. However, sales were down on a year-over-year basis by 2.9 percent.

Overall, it was the second slowest March since 2009. Only March 2014 was slower.

"Last month the housing market experienced a normal, seasonal spike from February in the number of recorded transactions, which reflects more buyers and sellers entering the market as the holidays and winter faded," said Andrew LePage, research analyst with CoreLogic, which crunched the numbers.

"However, sales fell slightly year over year -- for only the second time in the past year -- and they were about 21 percent below the average March sales tally since the late 1980s. This suggests that despite the improved economy and still-low mortgage rates, many would-be buyers continue to face hurdles such as waning affordability, moderately tight credit and a relatively slim inventory of homes for sale in many communities."

The median price for homes sold in the Bay Area in March -- single family homes and condominiums -- was $643,250, up 4.6 percent from the previous month. It was also up 1.4 percent from March 2015. The median sale price has now risen year-over-year for 48 months in a row. However, that 1.4 percent gain was the smallest for any month since the median sale price began its unbroken year-over-year rise four years ago.

LePage noted that sales activity was notably brisk last month -- up a combined 7.3 percent -- in the four most affordable inland counties: Contra Costa, Solano, Napa and Sonoma. However combined sales in the four most expensive counties -- San Francisco, Santa Clara, San Mateo and Marin -- fell by nearly nine percent.

The median sale price rose year-over-year by 1.7 percent in Alameda County to $630,250 and by 8.3 percent to $503,750 in Contra Costa County. In Santa Clara County, the median price was up by 9.2 percent to $830,000, while the median fell by 0.6 percent to $954,000 in San Mateo County.

Source The San Jose Mercury News, Richard Scheinin
http://www.mercurynews.com/business/ci_29786036/bay-area-home-sales-march-up-from-february

The Top Reasons Why Americans Buy Homes

Last week, the inaugural “Homebuyer Insights Report” was released by the Bank of America. The report revealed the reasons why consumers purchase homes and what their feelings are regarding homeownership.

Consumer Lending Executive, D. Steve Boland, explained:

“Homebuyers today are motivated by both emotional and practical reasons. Nearly all want more space, but a majority of homebuyers, especially those purchasing their first home, are also looking for a place to call their own, put down roots and make memories. They value the emotional benefits of owning a home as much as the financial ones.”

Boland went on to say:

“The path to homeownership is a journey and can be as overwhelming as it is exciting. For many people, this is the single most significant financial transaction they will ever make.”

This was evidenced in the report when they asked today’s homebuyers to define homeownership. Their answers tell the whole story.



Bottom Line

Homeownership has always been a part of the American Dream and survey after survey confirms this will always be the case.


Source: Keeping Current Matters
http://www.keepingcurrentmatters.com/2016/04/13/the-top-reasons-why-americans-buy-homes/

5 Home-Buying Mistakes That Can Sabotage Your Retirement

Buying a home is a major step toward building a solid, secure financial future—so whether you’ve made the plunge into ownership or are aiming to soon, you should pat yourself on the back! (This, of course, is not as easy as it seems.) And yet, in the race to settle into a place of your own, it can be easy to overextend yourself and cut corners on yet another important financial goal: saving for retirement.

Even if retirement is decades away for you, this subject nonetheless repeatedly tops the list of Americans’ economic fears in Gallup’s annual Financial Worry metric. But just because you buy a home doesn’t mean you can’t save for retirement, too. It’s a high-stakes balancing act, one where the right home-buying decisions will keep your retirement on track, and the wrong ones may throw you seriously off-kilter.

Here are some common retirement saboteurs to avoid.

Saboteur 1: Buying a house outside your price range

When you purchase a home, your retirement savings are on the line—even if it may not seem that way at the time.

“Housing is the biggest expense most people have,” points out Mary Erl, a certified financial planner and owner of Nest Builder Financial Advisors in Gurnee, IL. Hence, if you purchase a property that’s way outside your budget—and you’re forced to forfeit saving for retirement in order to make your mortgage payments—you’ve put yourself in a bind. A pickle, even.

And don’t just consider your current income, but your future income, too.

“People almost never take future earnings into consideration,” laments Joe Pitzl, a certified financial planner and partner at Pitzl Financial in Arden Hills, MN. “Younger couples get married, buy their first home based on their combined household income. But then when they start a family, one of the spouses leaves the workforce to raise the children and all of a sudden they’re bringing in a lot less money each month. That reduces how much money you can save for retirement.”

Saboteur 2: Draining retirement accounts for a down payment

While it’s tempting to borrow from your IRA or 401(k) to amass a down payment on a home, many financial experts say home buyers should do so sparingly, only as a last resort. IRAs and 401(k) plans are called retirement accounts for a reason—you’re not meant to touch the money until you’ve entered your golden years. If you borrow from either plan before age 59½, you’ll get slapped with a 10% excise tax on the amount you withdraw, on top of the regular income tax you pay on withdrawals from traditional defined contribution plans. Ouch.

Making early withdrawals also obviously prevents the money from accruing interest in these accounts. Put simply: Raiding the piggy bank before the money has matured can put a serious dent in your retirement savings, and many underestimate the repercussions.

“Withdrawing $5,000 from your IRA or 401(k) to pay for home repairs may not seem like a big deal,” Pitzl says. “But if you do so at age 30, that money would have grown exponentially over time if you left it in the account.”

Saboteur 3: Paying off your mortgage too quickly

While it sure sounds impressive to pay off your mortgage in three years, it’s not necessarily the best for your retirement. The reason: There’s good debt and bad debt. You want to pay off your credit card bill (bad debt) in full each cycle or you’re going to pay interest. Mortgage payments, though, work differently.

From a psychological standpoint, you probably don’t like owing a hefty sum to your lender. (We don’t blame you.) However, if you’re a younger homeowner with a new mortgage (good debt), it’s beneficial from a retirement savings perspective to make only the minimum monthly payments on the loan and invest the money where you can get a higher return.

For example, on a 30-year mortgage, at today’s interest rates, it makes more sense to put the money into an IRA or 401(k) than increase your mortgage payments, Pitzl says. “Don’t throw every penny you can at your mortgage debt,” he says. Granted, if you’re approaching retirement and are close to paying off your mortgage, it may make sense to up your payments if you want to retire debt-free.

Saboteur 4: Not saving for a rainy day

When asked about their emergency savings, an alarming 29% of Americans said they had none, according to a report last year by Bankrate.com. Nada. But without a sufficient emergency fund, you may be tempted to run up credit cards or tap your home’s equity or retirement accounts to pay for major repairs (new roofs don’t come cheap). And “if you get laid off, your mortgage payments don’t stop,” Erl says.

Therefore, make sure you have enough cash tucked away to cover six months of living expenses in the event you lose your job and budget 2% of your home’s value for annual maintenance (1% for newer homes), says Pitzl.

Saboteur 5: Waiting too long to downsize

Your $1 million McMansion may have made sense when your family of five was living under one roof, but if you’re heading into retirement, it’s probably time to downsize.

A common mistake, says Austin Chinn, a certified financial planner at Fountain Strategies in San Jose, CA: “People destroy their retirement savings by staying in their home so that they can have their kids move back in after they graduate college.”

Unless you’ve budgeted for a boomerang child, you need to do what makes sense for you financially.

“If you can move from a larger home to a smaller home and wipe out your mortgage, that’s a huge boost to your retirement,” says Erl.

Because crunching the numbers can be complicated, it can be helpful (and a huge relief) to meet with a financial planner to determine if a reverse mortgage makes sense for you (find one at Napfa.org).


Source: Realtor.com, Daniel Bortz
http://www.realtor.com/advice/finance/keep-home-from-undermining-retirement/?iid=rdc_news_hp_carousel_theLatest

Down Payment Insurance: Smart Protection or Total Waste of Money?

The housing crash of 2008 shattered the long-held notion that a home is a rock-solid, inviolable investment in your future. With home prices climbing steadily again to what seems like improbable (and possibly unsustainable) heights in some markets, many fear that we’re in another housing bubble—one that could burst, taking their life savings with it.

That’s why buyers may see the appeal in a new product from Dallas-based startup ValueInsured: +Plus, down payment insurance for homeowners. In a nutshell: It offers protection where protection didn’t previously exist.

However, the jury is still out on whether it’s a smart (additional) investment or the equivalent of feeding cash directly into the septic system.

It works like this: New homeowners can insure down payments of up to 20% for up to $200,000, paying a one-time premium when they close. Costs depend on how much they’re insuring and what state they’re in.

Then if home prices have fallen and these still relatively new homeowners have to move—say for a new job or to a bigger place after having triplets—ValueInsured will make sure they’re not out the difference.

Customers in all 50 states and Washington, DC, can get the insurance directly through the company or when they secure a mortgage through Amalgamated Bank. Buyers can also have their premiums included in their Amalgamated mortgages using a lender credit to pay the premium.

For example, a buyer who insures a 10% down payment of $25,000 on a $250,000 home in Ohio would pay a one-time fee of $1,455.52, according to ValueInsured’s website. If the buyer insured a 20% deposit of $50,000, it would cost $1,837.50. The costs of premiums vary by state.

“Nobody knows where life is going to take them,” says Joe Melendez, CEO of ValueInsured. “It’s about empowering a home buyer to purchase a home knowing that the money they’re putting into that home is insured in the event that they need to move and the value of their home is down.”

But if it sounds too good to be true… The insurance product, launched in the fall, comes with a few significant limitations. Homeowners have to wait two years before they can file a claim. And it’s good for up to only seven years after the day they closed. Seven years and one day? You’re out of luck.

The home must be a primary residence—the owners can’t be renting it out. And you won’t get your money back if you’re foreclosed upon (yikes) or if your home is seized under eminent domain (double yikes). Don’t even think about selling to a family member, either.

And again, this is down payment insurance—the policy doesn’t cover any upgrades you make, or costs related to the purchase or sale of the home.

The biggest catch: Home values are measured by a federal housing index for each state instead of how much the price for an individual residence declined. Those who buy the insurance will only receive a check for whatever is less: their down payment, their lost equity, or the drop in the index.




Here’s the problem: Take the example above, where you lose $20,000 (6.7%) on the home sale. If your state’s index doesn’t show a loss, then you won’t get a cent. Or in another scenario, say you lose that same $20,000 on the sale, but the state index is only down 3%. According to the state calculation, your home has lost only $9,000 in value, and that’s the amount that you’d get back.

“There’s just a lot of red flags here for me,” says Bob Hunter, director of insurance at the Consumer Federation of America, a Washington, DC–based, national coalition of about 350 pro-consumer groups. He is familiar with +Plus, although he has not specifically looked at a policy.

“I warn people not to buy new products, because they’re usually higher-priced,” says Hunter, a former Texas insurance commissioner. That’s because insurers don’t know on new products how much they’ll wind up reimbursing customers. And “they typically put in a lot of exclusions and other limitations to hold down their possible payouts.”

Hunter also worries that the five-year period in which homeowners can submit claims is too limited.

Protecting one’s down payment may indeed appeal to those living in turbulent real estate markets that got walloped when the housing bubble burst, says Michael Barry, a spokesman at the Insurance Information Institute, an industry-funded educational organization in New York.

Here’s the problem: Take the example above, where you lose $20,000 (6.7%) on the home sale. If your state’s index doesn’t show a loss, then you won’t get a cent. Or in another scenario, say you lose that same $20,000 on the sale, but the state index is only down 3%. According to the state calculation, your home has lost only $9,000 in value, and that’s the amount that you’d get back.

“There’s just a lot of red flags here for me,” says Bob Hunter, director of insurance at the Consumer Federation of America, a Washington, DC–based, national coalition of about 350 pro-consumer groups. He is familiar with +Plus, although he has not specifically looked at a policy.

“I warn people not to buy new products, because they’re usually higher-priced,” says Hunter, a former Texas insurance commissioner. That’s because insurers don’t know on new products how much they’ll wind up reimbursing customers. And “they typically put in a lot of exclusions and other limitations to hold down their possible payouts.”

Hunter also worries that the five-year period in which homeowners can submit claims is too limited.

Protecting one’s down payment may indeed appeal to those living in turbulent real estate markets that got walloped when the housing bubble burst, says Michael Barry, a spokesman at the Insurance Information Institute, an industry-funded educational organization in New York.

“[But] I’d be reluctant to cut another check at closing,” he says. “This is just one more additional expense.”

Despite the caveats, the concept of down payment insurance is alluring to real estate agents such as Deb Counts-Tabor.

Bidding wars have become common in the white-hot Portland, OR, market where she works, and desperate buyers, rattled by the limited number of homes for sale, will often pay well over the list price.

“People are going $10,000, $20,000, $30,000 over the asking price and waiving their appraisals because they want the house,” says Counts-Tabor, of Oregon Realty. But “if the market adjusts before they can pay that down, they end up underwater.”

It might make sense for buyers who worry they may have overpaid, she says.

Denver real estate agent Kristal Kraft would agree. Two of the properties she recently represented sold for nearly $30,000 more than their list prices as Denver’s market becomes increasingly competitive.

“It would give buyers peace of mind,” says Kraft, of the Berkshire Group. “They can be assured they can get some of their money back.”

Source: Realtor.com, Clare Trapasso
http://www.realtor.com/news/trends/down-payment-insurance/?iid=rdc_news_hp_carousel_theLatest

Realtors behaving badly - Fremont man sentenced to a year in jail for real estate fraud

Fremont man sentenced to a year in jail for real estate fraud

A Fremont man who pled guilty to charges alleging elder financial abuse and grand theft last month surrendered himself at Santa Rita Jail in Dublin on April 1, the Alameda County District Attorney's Office reported.

Real estate agent Jeremiah Bishop, who was 74 at the time of his arrest in April 2015, was also ordered to pay $422,522.38 in restitution to 14 victims on March 25 in Hayward. Bishop pled guilty before trial, Deputy District Attorney David Lim said.

Fremont Police Department said Bishop advertised himself to potential victims as a commercial real estate investor with a partner starting in 2006. However, the partner did not exist and the properties Bishop sought investors for were not actually for sale, police said.

One of Bishop's victims, Union City resident Richard Aug, said he is disappointed in the outcome of the sentencing and believes Bishop was "not as remorseful as he should be."

Also, due to his age, health and other factors, Bishop could end up serving less than six months in jail.

"That's horrible, that's deplorable," Aug said.

During the course of nearly 40 years, Aug and his children made six property transactions -- buying and selling -- with Bishop. He became so trusted and treated as a family member that Aug's children called him "Uncle Jerry."

However, the relationship was shattered a couple years ago when a $25,000 investment did not yield a return in nearly a year.

Another victim, Alameda resident Frances Lai, said she and the other victims walked out of the sentencing court sad due to the lack of additional jail time for Bishop, under what she described as a "generous plea bargain."

"By using his ruthless operation of a Ponzi scheme, he has heartlessly robbed people, including elders, of their hard-earned savings, causing them undue financial and mental stress, and most of all, exploited his own close friends, clients and colleagues and betraying their trust in him. I don't know how he can live with his own conscience," Lai said in an email, recalling what she said at the sentencing during the victims' chance to speak.

Lai said she first met Bishop when she joined Century 21 Mission-Bishop real estate company, 39180 Liberty St., as a rookie Realtor in 2012.

"He was my trainer and mentor," she said.

After not making a single sale in more than a year, Lai left the company in 2013. Shortly afterward, Bishop contacted Lai about high-return investments in which she ended up losing $22,500 in a year's time.

"I started to suspect it was a scam, but I didn't know where to turn to, as I had never experienced something like this before," Lai said. "I couldn't sleep for months, and was suffering from intense distress and anguish besides the financial crunch due to his non-payment of the loans."

Source: San Jose Mercury News, Julian J. Ramos
http://www.mercurynews.com/ci_29771297

How To Score A Great Deal On Real Estate

With many real estate markets rebounding or thriving, foreclosure rates way down, and short sales all but gone in most areas, can you still find a bargain when buying a home? Yes, but you'll have to be sneaky, creative, diligent, or all of the above.

Pay cash

You've got a couple hundred K lying around, right? It may sound ludicrous to some, but buying a house all cash is a growing trend, and one that can save you money upfront and down the line. Sellers may be more willing to negotiate on the home price for a cash purchase. A shorter home search and escrow period can save you money on carrying costs in your current home. And, obviously, not paying a mortgage can save you hundreds of thousands of dollars in interest.

Go to an auction

While foreclosures are down across the country, some homes still end up going through the process and then ending up available at auction. That means you can bid in person (or online if that option is available) in an attempt to get a bargain home. Take note that you'll probably be in competition with investors and home flippers, and many auctions require an all-cash payment, which makes them difficult to purchase for the average person. You'll also want to keep in mind that many auction homes are in poor condition - be sure to check them out before bidding so you don't end up with a money pit.



Buy in a developing neighborhood

If you're willing to compromise on location, you might be able to find a great deal. And, you might even get help with the purchase.

"Some towns offer transitional and developing neighborhood homes at very steep discounts," said Fortune Builders. "You may have to agree to live in the house for a certain number of years or agree to do a good amount of repairs, however this is definitely a program to search for in the area you're looking to buy.

Buy a fixer upper

Have a way with a hammer and a desire to make your place your own? Buy a project house. You'll save a ton of money and you'll be able to redo it in your style instead of living with someone else's.  Some loans might even help pay for your renovation as part of the home purchase.

Rent to own

Is your less-than-excellent credit and/or unsubstantial down payment making it difficult to get a good loan? Maybe you're having trouble competing with other buyers in a competitive market. Both of these scenarios could end up with you paying more than you want to. But you may be able to get a great deal and ease into the market with a rent-to-own or lease option arrangement.

"Whether the issue is a lack of down payment, a little too much debt, or a lingering ding on their credit report, sometimes buyers just have to wait while they work on their credit profile or save more money before they can buy a home," said Realtor.com. "In such a case, a rent-to-own or lease-to-own arrangement can sometimes be a solution."

The advantages of renting to own are the ability to lock in a purchase price from the beginning of the agreement, and saving toward a down payment - “During that time, the renters usually pay an above-market rent, with the excess rent credited toward a down payment when the contract ends,” said Realtor.com - and work on improving their credit so at the end of the term, they are able to qualify for a great rate.



Buy in the ‘burbs

People don't move to the suburbs because they want to be an hour and a half (each way) from work. It's a tradeoff for affordability, plus a crack at a family-friendly atmosphere and quality public schools.

For $500,000 ($499,990, to be exact), you could buy this brand-new home in the family friendly suburb of Santa Clarita. You'll have to deal with a long commute to…well, pretty much anywhere, but, in return, you'll have great space and a home designed just for you with all the features and finishes you want that no one has ever lived in. For the same money, you can buy this tiny condo a few blocks from the beach in Santa Monica. It's only 855 square feet and one bedroom, but think of all that time you'll save not being in the car!

That's the thing about location. It's give and take. While you might be able to find something in the location you really want for the money you have, it may not be what you want.

Source: RealtyTimes, Jaymi Naciri
http://realtytimes.com/consumeradvice/buyersadvice1/item/43798-20160414-how-to-score-a-great-deal-on-real-estate

Home Owners May Be Too Upbeat About Prices

Home owners may be slightly too optimistic about their home’s value compared to what appraisers say it’s actually worth. Home values are, on average, about 2.17 percent lower than what home owners expect compared to appraisers’ estimates, according to Quicken Loans’ latest Home Price Perception Index.

The gap between home owner expectations and appraisal estimates widened in March. In February, appraisals were 1.99 percent lower than what home owners expected.

Several areas in the Western region of the U.S., however, continue to see that the average appraised value is beyond what home owners were expecting. On the other hand, in the Midwest, appraisals tended to lag behind home owner estimates.

“The varying HPPI values across the country illustrates the importance of examining the market at the local level,” says Quicken Loans Chief Economist Bob Walters. “If home owners are eyeing that new home being built across town, they could be pleasantly surprised how much their home will sell for – or in some instances their equity may not take them as far as they think – depending on what area of the country they’re in. … It’s not always easy for home owners to keep their finger on the pulse of their equity.”

View a chart to see the breakdown of appraisal values versus home owners’ perceptions of value by metro level.


Source: RealtorMag Online - Quicken Loans
http://realtormag.realtor.org/daily-news/2016/04/14/home-owners-may-be-too-upbeat-about-prices?om_rid=AAFmZk&om_mid=_BXEBCMB9MrFoN4&om_ntype=RMODaily

7 Times You’ll Need Extra Paperwork to Get a Mortgage

When you apply for a mortgage the first time, or if you’re a little rusty on the process, it’s reasonable to expect some shell shock when you’re told what documentation you need to gather, as there’s often quite a bit of it. If you plan to buy a home in the near future, a good best practice is to save all paperwork just in case it’s something you end up needing.

Some of the initial information lenders may ask for includes:

• Tax returns for the past two years
• W-2s for the past two years
• Pay stubs from the past 30 days
• Asset reports for the past 60 days

These are the basic essentials, although you may be asked for other items, such as:

• A financial paper trail
• Specific dates on previous derogatory credit events
• A marital settlement agreement (MSA) from a previous divorce
• Any missing pages of bank statements
• Any missing pages of tax returns
• Details outlining anything that appears inconsistent

It is a good idea to provide the financial documentation to a lender as quickly as possible. Any delays in submitting these documents may postpone your interest rate lock as well as your ability to perform on your real estate contract. (Remember, a good credit score can help you qualify for the best terms and conditions on a mortgage and even help you afford a bigger mortgage. You can see where you currently stand by viewing your two free credit scores, updated each month, on Credit.com.)

To help you establish what other information you might need, consider the following.

1. You have undocumented money

If you have additional deposits in your bank account, other than your income, you will need to paper trail and source them, whether you plan to use that money for the loan or not. Lenders cannot ignore money in your bank account that cannot be documented.

2. You’re divorced

If you were divorced, even as long as 10 years ago, a lender may ask for a copy of the full divorce decree with all pages and schedules, including the marital settlement agreement. Even if you mark the “single” box on the mortgage application, lenders run a background check and will see any previous marital statuses, addresses, or names. If you didn’t provide a divorce decree upfront, lenders will likely ask for one after the background check.

3. You’re not a U.S. citizen

Two instances when you’ll be required to provide your birth certificate are if you are unable to provide picture identification or if you note on the application that you are not a U.S. citizen. In these instances, an underwriter will generally sign off on your loan without the supporting document. One way to prevent unnecessary holdups related to your birth certificate is to go over all raw data on the loan application and make sure you answered all of your declarations questions correctly.

4. You’ve been through a short sale

The final settlement statement from the transaction is critical. Many mortgage loan programs have a waiting time to be eligible for new financing.

5. You’ve been through a foreclosure

You’ll want the date of the trustee sale. This is usually accomplished by obtaining a copy of the trustee’s sale date deed from your local recorder’s office.

6. You’ve filed for bankruptcy

If you filed for Chapter 7 or even Chapter 13 bankruptcy, you’ll need all the pages and schedules, including the schedule of creditors specifically identifying everything associated with the discharge. The discharge date is the date at which the waiting time starts to secure new mortgage loan financing. Even if you’re already past the date, but you don’t have all the Chapter 7 paperwork, your new loan process for buying a home can be put on hold until you have all of the appropriate documentation.

7. You’ve had a loan modification

You will need the full loan modification agreement you signed with your original loan servicer when you apply for a new mortgage.

Lenders do not intentionally try to make you provide more paperwork when buying a home. Based on your financial picture it might be necessary in order to meet federal compliance regulations all lenders must abide by. If anything identified above exists in your past or your financial picture is unique, make sure to have supporting documentation and a seasoned loan professional (full disclosure: I am one) working in your best interests.

Source: Realtor.com, Credit.com - Scott Sheldon
http://www.realtor.com/advice/finance/7-times-youll-need-extra-paperwork-to-get-a-mortgage/?iid=rdc_news_hp_carousel_theLatest

Sneaky Ways to Check for Problems in a Home Before You Buy

Savvy home buyers know that when they’re checking out a house, they should kick the tires—or maybe the floorboards, bathtubs, and walkways—to ensure everything is in working order and they don’t end up with a housing lemon. Sure, you’ve probably heard that you should turn on the shower to check the water pressure. It’s true! But there’s way more you can do to avoid an unpleasant surprise later on that may require expensive repairs.

Take your sneaky investigative skills to the next level with these quick and easy expert tips to see if a home is actually worthy of an offer.

Use your marbles

Here’s a simple (and fun) tip to find out if the floor is tilted: Place a marble on the surface, and see if it rolls.

“Sloping floors could be signs of a charming old house or a more serious condition with the foundation,” says Randy Sipe, president of the American Society of Home Inspectors. In other words, proceed with caution and have this vetted by a home inspector before you get too serious about this place.

Snap pics of serial numbers

Whip out your smartphone and snap pictures of the serial numbers of large appliances, then Google them later for details. In particular, you can learn how old they are—something that otherwise might not come out until disclosure. You might be amazed.

Note: A water heater’s number is right on front; ditto for a furnace or HVAC unit.

Look up

No matter how thoroughly you ogle the kitchen and closet, don’t forget to also look up.

“Inspect the ceiling for water stains, which are signs of a leaky roof,” says Sipe.

A fresh paint job should also set off your internal alarms, since paint can do a fine job at hiding water stains underneath. Go ahead and ask if there’s been any water damage; homeowners in most states must disclose many underlying problems. It’s the law.

Open, close, repeat

“Open and close doors to see if they shut smoothly or bind and don’t latch, indicating signs of excessive settlement,” says Sipe. Off-balance door and window frames—the cause of sticking—are classic signs of a possible foundation problem.

Go outside and walk in a circle

While it’s tempting to spend all your time checking out the inside of a house, make sure to check the outside, too.

“Water damage can lead to expensive repairs and mold infestation,” says Ryan Larsen, a civil engineer at NDS and known as “Dr. Drainage” on his YouTube video series. “Home buyers need to ensure that drainage is sufficient on any property.”

Larsen suggests checking to see if the ground directly adjacent to the foundation slopes away from the house, or toward it. Grading that slopes toward the home could lead to damp crawl spaces, structural damage, and toxic mold. Next, find the rain gutter downspouts. Do they drain directly to the ground, and is there a low spot for water to collect near the home? If so, “there’s a good chance there’s water intrusion somewhere.” Downspouts should carry water at least 10 feet away.

Whip out your credit card

All foundations include a few tiny cracks, but which ones are really worth worrying over? Sipe offers this insight: “Look at the foundation for any cracks larger than the thickness of a credit card, which could signify water leakage. Pay special attention to corner areas, since cracking there may be signs of movement, which may require repair.”

Open the curtains

“Oftentimes a window is foggy from condensation if the double-pane window seal is defective and leaks,” says Realtor® Judy Chin.

Touch the walls

Ease your water seepage concerns by heading straight to the basement and checking the base of walls for water marks. If there’s a lot of moisture, the walls may even feel a bit soft.

Take some video footage

Can’t fit into a small crawl space or cramped attic? Deb Tomaro, a Realtor in Bloomington, IN, advises potential buyers to at least stick their arm in and videotape the area with their phone. “Then you can download the tape onto a computer and zoom in to get a good look.”

Arm yourself with a few apps

Apps abound that can help when checking out a house. For instance, did that ad say “sun-drenched master bedroom,” but you’re visiting in the evening or on a cloudy day? Don’t take their word for it; download the Sun Seeker app, which will tell you when (and if) certain rooms will get sunlight throughout different times of the year.

Is the home in dire need of a paint job or refinished floors? The Handy Man app will calculate how much you’d have to spend to redo a floor or paint a room. That way, you have a sense of how much these renovations will cost and can plan accordingly.

Source: Realtor.com, Margaret Heidenry
http://www.realtor.com/advice/buy/sneaky-home-buyer-checklist/

How Do You Know If You’ve Found Your ‘Perfect Match’? [INFOGRAPHIC]

Rent or Buy: Either Way You’re Paying A Mortgage

There are some renters that have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either your mortgage or your landlord’s.

As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.  

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

The graph below shows the widening gap in net worth between a homeowner and a renter:



Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.

Source: Keeping Current Matters
http://www.keepingcurrentmatters.com/2016/04/05/rent-or-buy-either-way-youre-paying-a-mortgage/

This billboard says everything you need to know about absurdity of San Francisco real estate

I think we're gonna need one of these billboards here in the Silicon Valley soon.



This billboard says everything you need to know about absurdity of San Francisco real estate

‘Help, a McMansion Is Going Up Next Door!’

I can think of one neighborhood right here in Cupertino, not far from my office that has a number of McMansions. 



Janet Per Lee has lived in the same house in Mountain View, CA, for over 40 years. Built in the 1950s, her 1,000-square-foot ranch house is situated on a secluded quarter-acre with trees whose branches hang heavy with apricots, plums, pears, and figs, which she shares with her neighbors. Her three kids grew up playing in that yard, attending top-notch local schools. Although the kids are no longer living at home, Per Lee loves her community and, in a normal world, would never consider moving.

But this is no normal world. In fact, the Google headquarters is located less than a ten-minute drive away.

As this tech titan has grown exponentially, so has the neighborhood’s popularity. As houses in the area have gone up for sale, developers have bought them, bulldozed them, erected 4,000-square-foot mansions that are selling for over $3 million. In fact, eight years ago, it happened right next door to Per Lee, who learned the new house would fill the entire lot from front to back and tower over her own.

“It’s built so much higher than my house, virtually every window looks out into my backyard,” she says. Desperate to protect her privacy, she planted Italian cypress trees as a natural barrier. She tried to reason with the builder, whose unsympathetic response was: “Shouldn’t everyone be able to build their dream home?”

Big homes = big problem

What’s going on in Mountain View is an extreme version of a problem cropping up all over the country: Huge houses are being built on plots of land originally meant to accommodate smaller dwellings, sparking a heated debate over what’s best for the community. Some argue that owners of larger homes pay more taxes, which can benefit all. But if your home happens to have its air and light blocked by a behemoth next door, you would likely be very, very upset—and can most likely kiss the idea of cashing out on your home sale goodbye.

Those against the lenient building codes that allow for “mansionization” also argue that it negatively affects a community’s vibe.

“These houses are often akin to fortress walls on city streets,” contends Greg Goldin, curator at the A+D Architecture and Design Museum. “People in big houses tend to lead noncommunitarian, noncivic lives. These homes are the embodiment of their desire to turn their backs on the shared experience and common spaces of real city life. They are anti-city.”

That might sound extreme, but it’s exactly what Per Lee has experienced as her once-secluded pocket of Mountain View has evolved. Realtors® and developers advertise the vibrant community and shady tree-lined streets as a draw, but then chop down those trees to maximize building space on the lots—and once new owners move in she barely sees them out and about mingling with their neighbors.

Another factor: Homeowners believe they have the right to do as they please with their properties—especially when they’ve paid big money for their land.

“If people are paying millions for the dirt on which a teardown sits, they want to be able to make their own decisions regarding the housing,” explains Arthur Jeppe, a partner at Read & Jeppe in Newport Beach, CA.

Which is understandable, but shouldn’t they at least consider the impact on their immediate neighbors?

‘Neighborhoods need to evolve’

In Renton, WA, Robert Walker’s 1,000-square-foot bungalow came with a view of downtown Seattle’s skyline and Lake Washington. But in 2005, buyers purchased the home across the street from him and built a three-story, 4,000-square-foot house that blocked his whole view. Despite collecting signatures for a petition and arguing his case before Renton’s City Council, Walker got nowhere.

“The feeling definitely seemed to be that being a place that’s attractive to stable homeowners was more important than regulating what’s being built,” says Walker.

A similar drama is playing out in Arcadia, CA, where more than 30 homes larger than 5,000 square feet (some as large as 8,000–9,000) have been proposed in the 850-home community over the past six years. In response, a group of longtime residents formed Saving Arcadia, which is currently battling the municipal government and City Council. Its argument: Overly lenient rules for developers have led to the proliferation of McMansions on lots that were zoned back in the 1950s for smaller homes. Plus, these oversize dwellings overburden the city’s water, gas, electricity, and other utility services.

Yet not everyone is against mansionization. According to Benjamin Reznik, a Los Angeles–based lawyer who often represents large-scale developers, neighborhoods evolve—and need to be allowed to do so. So while he agrees that neighborhoods’ historic character needs to be preserved, he thinks NIMBYism (for “not in my back yard”)—where locals oppose almost all new, larger residences simply because they don’t want them nearby—is a mistake.

“City councils need to take a refined, surgical approach to proposed projects rather than just enacting zoning restrictions that don’t actually make sense for some of the plots of land being discussed,” Reznik contends. In fact he believes the most effective way forward when disputes arise is compromise that includes allowances such as reasonable increases in a residential structure’s height if it’s set back from the property line.

Another option is finding a creative solution. One example is building downward (if a property is set on a hill) in order to increase square footage while preserving neighboring views, which is increasingly happening in various areas near Newport Beach. So maybe there’s hope that we can all play nice after all?

‘The neighborhood I loved is gone’

For Per Lee, however, things have already gone too far. She’s recently decided to sell her home, even though she knows it will most likely be replaced by the very kind of McMansion she hates. The silver lining: She frequently receives unsolicited offers from builders who want to buy her property, and the prices keep going up.

Per Lee says she’ll miss the neighborhood where she’s lived for decades, and her fruit trees, but that she’s looking forward to relocating to a quieter area that’s more in line with her values. After all, she points out, “Bigger isn’t always better.”

Source: Realtor.com, Audrey Brashich
http://www.realtor.com/news/trends/mcmansion-next-door/


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