I responded to a question posted on a consumer forum this evening, and it inspired this blog post. There are MANY programs for first time home buyers in the Sacramento and surrounding neighborhoods...some are income based, some are based on the location (city/county) of your home, etc.
CalHFA has programs available in Sacramento County for existing resale and new construction homes based on your income. If you have a household that is 1-2 people, your household income can not exceed something like $85,200. If your household is 3+, your income can not exceed roughly $99,400. CalHFA has a few loan programs, and downpayment assistance grants. CalHFA offers a special loan program for the purchase of REO properties from participating financial institutions!
CHDAP (California Homebuyer's Downpayment Assistance Program) offers a deferred-payment junior loan of an amount up to the lesser of 3 percent of the purchase price or appraised value to be used for a down payment or closing costs.
The City of Roseville has a First Time Homebuyer Downpayment Assistance progam for low income buyers. It is a 0% deferred payment loan. Eligible participants must have annual incomes at or below 80 percent of the median income for the Sacramento area adjusted for family size
The Sacramento Housing and Redevelopment Agency offers CalHome First-Time Homebuyer Mortgage Assistance Program. It is designed to provide financial help to low-income homebuyers (max household income is $65,900 for a family of 6) by reducing the amount of the first mortgage loan and helping to pay non-recurring closing costs on home purchases in certain eligible neighborhoods and properties of the City and County of Sacramento...They also offer the American Dream Downpayment Initiative Program (ADDI), which is designed to provide financial help to low-income, first-time homebuyers by providing down payment, closing cost, and rehabilitation assistance on home purchases within the City and County of Sacramento (this program is out of funds for 2008).
The National Homebuyer's Fund offers two first time buyer loan programs - the "First House Loan" and the ACCESS Loan. Both of these were originally designed to offer up to 105% financing, although I believe the loan to value has been reduced below 100% now.
There are many programs out there...you might try calling Marlena Olson with the Vitek Mortgage Group at 916-486-6931. She can assist you to determine which ones you may qualify for, and ultimately which program is the best fit for you.
Last night, the Sacramento Association of Realtors celebrated its 100th Anniversary with a formal dinner event - the Centennial Gala.
The SAR Centennial Committee and staff worked hard to put on a great event. All year long at our main meetings, we have enjoyed photos and memorabilia from years past, and last night we watched a pretty neat slide show. Pretty cool to see photos from earlier eras of other Realtors doing the same types of things we are doing today.
Perhaps at the 200 year anniversary event, future SAR members will see goofy photos of me and get energized about what they can do for Sacramento?...I am excited to contribute to [at least part of] the next 100 years!
I suppose one of the reasons I am such a prolific blogger is that I spend so much time on hold working on short sales. I am currently negotiating six of them (with a total of 10 loans between them), so several times a week I spend a couple hours listening to hold music trying to get through to Loss Mitigation. I try to be as productive as possible, and often times in the absense of emails to respond to, listings to look up, home evaluations to do, Trulia Questions to answer, news to read, and websites to play on, I do a brain dump into my blog. It is almost theraputic.
Last week, I closed another one of my short sale listings after a very tumultuous time on the market. We were in contract a total of 3 times with 3 different buyers before one stuck. I had approval from both lenders within a couple weeks of receiving our first offer...I had tirelessly communicated with the buyer's agent while I was working with the lenders. The day I received written acceptance, the buyer's agent told me they had gone into contract on another property. ARRGGHH!
So, back on the market we went. A week or so later we had another offer...of course the approvals I had received from the lenders had an expiration date that presented an unrealistic time line for this new buyer, so I worked hard to get an extension. After about 2 weeks of waiting, that buyer got restless...2 days after that buyer cancelled, I received new approvals from the lenders. Again, ARRGGHH! I felt really bad for the sellers, who were trying to determine when to move...what a crazy up and down ride for them!
Back on the market...within another two weeks we had yet another offer. Again I had to go back to the drawing board with the lenders. Two weeks later I had written approval from the lenders - but this time they wanted the buyer to close escrow in 13 days (that's really fast!). The buyer threatened to walk away, saying that there was not enough time to close the escrow. After wrangling with the lenders, they agreed to extend the close of escrow...it finally closed escrow on November 7th.
One of the most frustrating elements in short sale transactions for me as a listing agent (aside from countless hours on hold), is the fact that you never really know if the buyer for your property is coming or going. The longest short sale negotiation I have done to date was 5.5 months, and that buyer really wanted the house and patiently waited throughout the entire process, while I have worked on others that were approved in just a couple weeks where they buyer skipped out. One thing I have learned to prep my sellers for is the fact that getting and KEEPING a qualified buyer is one of the most critical pieces in the transaction...and it is a piece we have zero control over. Luckily, I have worked with some wonderful clients who understand this and appreciate my efforts.
Well anyway, in the time it has taken me to write this post, I learned that one of my short sales was just recommended for approval!...woohoo!!!
Great investment opportunity that cash flows! Updated duplex has 2 beds, 1 bath, 837 square feet, and 1-car garage on each side. Annual rents estimated to be $21,600! Close to schools, shopping, freeways, and public transportation. Offered at $189,000. Sale is subject to lender approval of short sale. For more detail visit http://www.lerwickroadduplex.com/ or to schedule a private showing, please contact me.
Last night at Land Park Lanes, a few crazy Sacramento Association of Realtors members and affiliates did a bowling tournament fundraiser for the California Association of Realtors Housing Affordability Fund.
I dusted off my bowling ball and shoes (hey -- I grew up in a bowling family alright!?!!), dressed up for our 70's theme, and had an absolute blast! The photo above is the planning committee...if you have a difficult time picking me out of the lineup, I am the one in the middle with the blonde frizzy wig.
My mom and my husband attended as well...my mom was actually a lounge singer in the 70's and wore a dress she used to wear then. My husband wore a brown 70's leisure suit that his dad gave him.
The SAR Young Professionals Council and Housing Opportunity Committee orchestrated the event, and I am pleased to say it was a great success! There were 26 event sponsors, lots of raffle prizes, food and drink, disco music, and over 100 bowlers! A fun time was had by all, and best of all we raised lots of money to donate to CARHAF.
HR 6694 has not received any press lately, but many people have asked me if there were any updates. As of right now (November 6th, 2008), it has passed through the House Financial Services Committee, but has yet to be voted on by the House of Representatives...to refresh your memory, this legislation seeks to revive and revamp Seller-Funded Downpayment Assistance Programs (such as Nehemiah, Ameridream, etc.).
It still faces the possibility of being amended, and not only must it be voted on by the House of Representatives, but then the Senate, and then passed along to the President.
Don't hang your hat on this buyers...if seller-funded downpayment assistance returns, it won't be any time soon.
Why would you want any other company than Placer Title in Sierra Oaks to handle your escrows? Janine Romney and Debi Skelly have a great sense of humor...they both made an appearance in my office today dressed in their costumes. Thankfully, I can find no where in the language of SB 133 where dressing up in Halloween costumes in against the rules!!
JPMorgan Chase announced today that over the next 90 days it will be expanding its Mortgage Modification efforts in order to help struggling homeowners avoid foreclosure and stay in their homes. During this 90-day period as it implements these changes, there will be no new foreclosure filings.
JPMorgan Chase owns Chase, Washington Mutual, and EMC...their new plans include things like opening 24 new regional counseling centers to provide face-to-face help for its borrowers, adding 300 loan counselors to its staff, and considering more flexible eligibility criteria on origination dates, loan-to-value ratios, etc. for its modifications.
I can say from personal experience with short sales, these guys mean business. Their loss mitigation folks are very proactive, helpful, and quick to review files. I will be curious to see how this all unfolds in and around Sacramento...
When I was a kid, I remember there was a designated day each year where you could pile your larger trash items out on the front sidewalk, and the county would come and pick it up...well actually, they would come pick up what was left after folks came to scavenge the junk. We called it "The Great Garbage Give Away."
Well now, if you live in Sacramento County, you do not have to wait for a collection crews to be in your neighborhood on a designated date. Sacramento County will provide once-per-year pick-up of your bulky waste by appointment. To schedule a pick-up, call the Sacramento County Waste Management Department at 916-875-5555. Five cubic yards of material, which is a pile about 8'x4'x4', is the maximum that will be accepted. This is also about the size of a pickup truck bed filled even to the top of the cab. Extra material will be picked up for a charge or $25 per 5 cubic yards.
The City of Sacramento still operates designated collection days in most neighborhoods, however some residents are eligible for an appointment program similar the county's program. For information or to schedule an appointment within the City of Sacramento limits, call 916-808-5454.
DO YOU OWN PROPERTY IN NATOMAS? On December 8, 2008 (less than 6 weeks from today), the new Natomas Basin FEMA flood maps take affect, and thousands of Natomas area residents will be required by their mortgage companies to purchase flood insurance. If owners purchase now, they will be eligible for a reduced "preferred risk" rate. This reduced rate then will be "grandfathered" in, and allowed to be carried over. If owners wait until they are forced to obtain insurance by their mortgage companies, they will get the "standard risk" rate, which is more than double the annual premium rates.
If you are wondering if your parcel falls into a flood zone, you can reference the Preliminary Natomas Floodplain Maps from FEMA. Contact your insurance agent with specific questions...
This Saturday from 1pm - 3pm, the Sacramento Natural Foods Co-op Community Learning Center is hosting the "Home Green Home Fair." Come and check out Sacramento businesses and organizations that can help you go green inside and out! Attendees will learn how to create a home that is less toxic and more energy efficient. Saturday is also the Natural Foods Co-Op's 35th birthday! In addition to the Home Green Home Fair, there are other activities throughout the day, such as a harvest tasting fair, local artisans, cooking demonstrations, kids’ activities, local farmers, live music, wine tasting, birthday cake and more!
When purchasing a bank-owned REO property in California, you as the buyer should be aware that you will received limited disclosures from the bank / asset manager seller.
You should ask your agent to provide you with an REO Advisory, which is a standard California Association of Realtors form (Form REO) that details what the seller is and is not required to give to you. Lyon Real Estate agents are actually required to use this form when listing or selling bank owned property. Language straight from that form reads -
"Disclosures: Seller is NOT EXEMPT from common law and statutory duties concerning fraud and deceit, even though the specific TDS form is not required to be completed. Seller remains obligated to disclose material facts affecting the value and desirability of the property."
The bank has never occupied the home, and it is very likely a representative from the bank has never set foot on the property. However, if the property has been on the market for 6 months, and has been burglarized twice, the selling agent or bank / asset manager is still obligated to disclose that.
In an REO transaction, the seller is required to provide you with an Hazard Zone Disclosure, Smoke Detector and Water Heater Statement of Compliance, Lead-Based Paint Disclosure, Megan's Law Disclosure, and Tax Withholding (FIRTPA).
Other forms, such as the Transfer Disclosure Statement, Seller Property Questionnaire, Supplemental Statutory and Contractual Disclosure, etc. are probably required by your agent's firm as a formality to complete the file on his/her end, however the bank itself is not required to provide you with one.
I have done several of these transactions over the last 18 months, and I usually end up having my buyer clients sign blank disclosures. I write exempt and draw a line diagonally through the form...the bank seller and listing agent will likely not sign these forms. Because there is such little disclosure, make sure to do thorough inspections and investigation.
Though officially, SB 133 does not take effect until January 1, 2009, locally title companies are implementing its new standards now. Title company "Business Development" (sales) representatives will have to be licensed with the department of insurance. While there have been pre-existing rules in effect regarding "inducements" (kickbacks, gifts, etc. in exchance for doing business), this bill takes everything to a new level.
While I definitely agree with the concept of the legislation, the practice and everyday implications of this legislation seem never-ending and, quite frankly - pretty scary.
Now title reps can not participate in any Sacramento Association of Realtors committees (example - the title rep that serves on the Young Professionals Council must resign her position at the end of the year). Title companies can not sponsor any SAR or real estate office events or fundraisers (example - sponsor a booth at an annual conference). A title rep can not bring food or drink to a SAR or real estate office meeting or party (example - can not provide a pot of coffee at a regional meeting). If a title rep and a real estate agent happen to be friends, the title rep can not buy the agent a birthday present...can not validate parking...can not make copies at an escrow signing...how far does this really go?
If a title rep is caught violating any rules, they can be subject to personal fines, and have their license revoked (they can not reapply for 5 years).
I am definitely an animal lover...I have three huge dogs at home. Two bloodhounds, Harold (pictured here) and Hubert, and a black lab mix named Howard. My husband and I love taking our dogs to the Off-Leash Dog Area at Carmichael Park. Of course with three 100lb+ dogs, this sort of outing is a huge undertaking! Here is a list of dog parks in the greater Sacramento area:
- The Canine Corral Dog Park - Carmichael Park at Fair Oaks Blvd and Grant Avenue in Carmichael
-Pooch Dog Park - C Bar C Park at Oak Avenue and Melva Street in Citrus Heights
-Fair Oaks Dog Park - Phoenix Park at Sunset Avenue and Runway Drive in Fair Oaks
- Bannon Creek Dog Park - Bannon Creek Park at Bannon Creek Drive off of Azevedo Drive in Sacramento
-Granite Dog Park - Granite Regional Park at Cucamonga off of Power Inn Road in Sacramento
-Partner Dog Park - Belle Cooledge Community Center at South Land Park Drive and Fruitridge / Seamus in Sacramento
-Tanzanite Dog Park - Tanzanite Community Park at Bilsted Way at Tanzanite Way in Sacramento
-Regency Dog Park - Regency Community Park at Honor Parkway and Bill Bean Circle in Sacramento
-Elk Grove Dog Park - Elk Grove Community Park at Elk Grove-Florin Road and East Stockton Blvd in Elk Grove
-Laguna Community Dog Park - Laguna Community Park at Bruceville Road and Big Horn Blvd in Elk Grove
Is it just me, or did we go from summer to autumn overnight with literally no transition? It seems like just a few weeks ago we were experiencing 90 degree+ days, and today I wore a sweater. Anyway, halloween is just around the corner...to expand on last year's post, here are some area pumpkin patches:
Goblin Gardens Pumpkin Patch & Corn Maze
3845 El Centro Road, Sacramento
916-925-2947
September 27 to October 31
Open Daily, 10 am to 7 pm
Dave's Pumpkin Patch
3010 Burrows Avenue, West Sacramento
916-849-9450
September 27 to October 31
Open Daily, 5 am to 7 pm
The Pumpkin Farm
7736 Old Auburn Road, Citrus Heights
916-726-1137
October 1 to 31
Open Daily, 9 am to 6 pm
Pumpkin Paul's
5910 Hazel Avenue, Orangevale
916-988-7727
October 6 - 31
Open Daily, 9 am to dark
Sleepy Hollow Pumpkin Patch
210 S. Harding Blvd., Roseville
916-786-7979
October 1 to 31
Monday - Thursday, 3 pm to 9 pm, & Weekends, 10 am to 9 pm
Fog Willow Farms
11011 Cecatra Drive, Wilton
916-687-4547
October 1 to 31
Open Daily, 9:30 am to 6 pm
Woodland Corn Maze & Pumpkin Patch
County Road 103 and East Main Street, Woodland
September 21 to October 31
530-666-7194
Closed Mondays
Happy carving!!
When I was in kindergarten, my dad took my class on a field trip to the Nimbus Fish Hatchery. It was one of my most memorable field trips when I was a kid, and is probably part of the reason that to this day I love fishing! This coming weekend, you can check out the Nimbus Fish Hatchery, among other recreational areas at the The American River Salmon Festival!
The event is this weekend, Saturday October 11th, and Sunday October 12th, is FREE! Parking is $9 dollars, or you can take advantage of the complimentary shuttle services from RT's Light Rail Station on Folsom Blvd. at Hazel Avenue. There is also a free bike valet service.
The festival has all ages fun - like live music, magic shows, puppet shows, face painting, educational programs, fish and wildlife exhibits, great food, and more!
I may see you there!
I blogged about changes to the Fannie Mae / Freddie Mac underwriting guidelines concerning keeping a home as a rental property and purchasing a new property a couple months ago. These changes have now hit FHA lending guidelines as well. Last week HUD released new temporary underwriting guidelines surrounding this practice.
Unfortunately, there are folks out there who have been producing phony rental agreements for the home they are vacating, closing escrow on their new replacement home, and then allowing their "rental" home fall into foreclosure. This is known as "Buy and Bail."
Directly from the language in HUD's Mortgagee Letter 2008-25:
"Recently, FHA and others in the mortgage industry have observed an increasing number of homeowners who have chosen to vacate their existing principal residence and purchase a new residence. ... Due to FHA's concern that some homebuyers in these transactions may attempt to provide misleading information regarding the rental income of the property being vacated to qualify for the new mortgage, FHA is instituting underwriting guidance designed to assure that the homebuyers can make payments on the full debt service of both mortgages. Consequently, beginning with case number assignments on or after the date of this Mortgagee Letter and until further notice, the underwriting analysis may not consider any rental income from the property being vacated..."
There are two exceptions.
- If you are relocating for a new employer or being transferred by a current employer to an area that is not within a reasonable commute distance, you may be allowed an exception if you can show an executed rental agreement and demonstrate that a security deposit has been collected.
- If you can demonstrate that the vacated property has 25% equity via a current appraisal (less than 6 months old), you may be allowed an exception.
Unfortunately, this new underwriting guideline will prevent some legitimate buyers from purchasing a new home while keeping their existing home. Speak with your loan officer to see how these guidelines may pertain to your individual situation.
Per a press release from Governor Schwarzenegger's office, he signed several real estate and lending related bills today. Yay for California! A brief summary of some of them;
SB 1461; real estate licensees required to publish license info in certain advertising
SB 870; allows CalHFA to structure a refinance program
SB 1055; mortgage debt forgiveness similar to the federal legislation
SB 1675; provides the California Department of Veterans Affairs with the discretion to structure the terms and conditions of any authorized debt issuance
Good stuff...to see other state and federal legislation pertaining to the real estate industry, click here.