Real Estate Information

I bet you didn't think you would see this in the news. Yes, it looks like we are seeing a serge in home prices! Mostly due to the low inventory and great interest rates, people are starting to see that NOW IS A GREAT TIME TO BUY!!!

Some great information I received from one of our preferred lenders. I thought I would pass it along. If you would like more information give him a call. Make sure you tell him you heard it from us. Stan and Renee.

Stan Rector

Home Affordable Refinance Program Version 2.0 (HARP 2.0)

 Important factors:

•         The loan being refinanced must have been originated before 5/31/09.  Anything after that date is subject to regular lending rules.  This date also applies to the new FHA refinance program that is coming out 6/11/12.

•         The loan being refinanced must currently be owned by Fannie Mae and Freddie Mac.  This can be looked up online: http://www.fanniemae.com/loanlookup or https://ww3.freddiemac.com/corporate/

•         There are now unlimited LTV’s and CLTV’s.  Previously borrowers were capped at 125% LTV (loan to value).  This means it doesn't matter what your home is worth.

•         Cannot combine 1sts & 2nds, the second must agree to subordinate to the new first mortgage but any TARP bank (the ones that were bailed out) have to comply with this program.  Therefore, if a major bank owns the current second mortgage then it is OK to proceed with the subordination process but credit unions and smaller banks could stand in the way of the refinance since they are not forced to comply.  There is no way to know until you try but since we are improving the borrower’s position on the first mortgage most 2^nd mortgages will comply but it is not guaranteed.

•         There are no longer drastic adjustments to the rate.  People with good FICO’s will get the market rate which wasn't the case previously.  This will save thousands a year.

•         No appraisal is required saving money, time and potential property issues.

•         Must have no mortgage lates in the last 12 months.

•         Must qualify on income but documentation is very light so as long as the borrowers qualify now the last 2 years are not important like they are on regular loans.

This program is great for all those folks who did the right thing and made their payments on time and didn’t walk away.  Now those people will get rewarded and in many cases all closing costs are covered so this is usually a free loan!  Please call for more details: 

Rob Scheuing

President

Sherwood Mortgage Group, Inc.

2219 E. Thousand Oaks Blvd., Suite 207

Thousand Oaks, CA 91362

(805) 496-2512 Direct

(805) 496-5235 Fax

CA Dept. of Real Estate #:01041525  NMLS #:302870

http://www.stanrector.com/Business-Partners

We went to a panel yesterday on short sales and REO. The panel consisted of bank heads from both REO/Foreclosure and Short Sale department from Wells Fargo, Chase, and Bank of America. For the first time we heard their side of the story. How the process works on the banks side. The information is going to be a great help when working with our clients. Give us a call today and we can pass the information on to you. If your Buying or selling the insight we received is going to help you! 

Wow, When you love what you do...... Here is a sample of what you can have if you are looking to buy or sell a home.

Steve & Jessica Hayes - Home Buyer

"I wanted to thank you both so much for everything you have done for Steve and I.  You absolutely went above and beyond in every way possible.  You ended up getting us in our number one choice of house even though it did not seem the easiest to obtain.  I do not think this would be possible without you being as quick and diligent as you are.  Thank you for making this process so easy for us.  You will be in our thoughts everyday we are enjoying our new home.  You both have been so kind and honest that I cannot express how grateful we both are.  We look forward to working with you again in the future; As well as spreading the news to everyone we know about our great experience.

Can you believe that we are in a major challenge in today's market. The lending processes getting more and more challenging with more then 3 out of 10 deals that need a loan falling apart even if you can get a buyer and Seller come to terms on a sale (not an easy feat these days). What are some of the more common reasons?

• Appraisal issues – In many markets, we are still seeing slight declining values. Appraisers are in a difficult position, and with so many transactions (including Seller’s concessions to assist buyers with closing costs) values aren't always coming in at sales prices or even market value.
• Short Sales not being approved by the Lender – With so many sellers owing more than their home is worth, buyers’ proposals need to be approved by the Lender (who will be receiving less than they are owed). Some of the offers are too low, but often, the lender isn't local and they really don’t know what the property is worth in today's market, sometimes trying to get more then the property is worth in it's current condition.
• Bad pre-approvals from the loan officer – Today, Loan officers who are not reviewing credit reports, tax returns, analyzing bank statements, and asking for detailed explanations and documentation on credit blemishes. They are truly hurting the customers. Issuing pre-approvals based on the just what the customer says and not really looking into their real qualifications. One of the biggest things we see is the lack of understanding about closing cost and what it will really cost to close the transaction in addition to the down payment. Their are additional cost that need to be talked about. 
• A lack of transparency – Whether it’s a Seller or agent not disclosing property issues, or a buyer trying to sneak things by an underwriter, too many people think they can cut corners. Everything needs to be uncovered. Being honest in the beginning, gives you the best chance to overcome obstacles.

It is getting more and more challenging to close loans in today's market, the underwriting guidelines are changing every week. Some are making it hard for people to get loans. However, with proper planning and integrity, many of the challenges can be dealt with early and successfully. If your interested in finding out more, we are here for you. We can help you get through this with out the Horror stories. Don't take our word for it, listen to what our clients have to say. --  Click here to read!!!

http://www.stanrector.com/Client-Testimonials

ATTN SIMI VALLEY NATIVES: My friend went to the Simi Christmas house on Sycamore this past week, with the kids. Mr. Becker was outside so they talked to him for a minute. He told them that either this year or next year will be their last year decorating! :( He said they've done it for over 50 years so this is the end of an era. Be sure not to miss it this year and bring your cameras because this may be your last chance. Copied from a friend.

We had an amazing day on Monday. It was great to have the news cover the day!

My wish is that next year here in Simi Valley we will be able to triple the amount of people that we can help.

Check this out. In Simi Valley last Friday we prepared food for the 12th annual Troop Real Estate 2011 Turkey-A-Thon. Here is a video to show you about it.

After a long time debate the FHA loan limits have been raised back up by congress, They will be in place for the next 2 years according to the information we received in the email from the National Association of Realtors. See a copy of the email below.

"Last night Congress restored the loan limits for the Federal Housing Administration (FHA) for two years.

As you know, in late September the FHA, Fannie Mae; and Freddie Mac loan limits were reduced in 42 states pricing potential home buyers out of the American Dream of home ownership and holding back the housing recovery.

NAR immediately went to work with the goal to get the loan limits restored in Congress. For weeks that goal seemed unlikely.

You, and countless other REALTORS® like you along with YOUR leadership and YOUR management team worked to educate Congress that well-qualified buyers didn't need yet another hurdle to access affordable mortgage financing.

They finally listened. Because we were persistent. And because we were right.

The reinstated FHA loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties in 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000. The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets, the floor will remain at $271,050. However, Congress chose not to apply the loan limits restoration to Fannie Mae and Freddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115 percent of local area median home prices up to $625,500.

The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011. NAR will continue to press Congress to use the additional time to complete their work on a five-year re-authorization of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.

I know that when we work together we can accomplish anything we set our minds to in order to preserve, protect and defend the American Dream of Home Ownership.

Because of your excellent work, I am continually reminded that “REALTORS® are the Heart of the Deal.”

With much appreciation,

Moe Veissi
2012 President
NATIONAL ASSOCIATION OF REALTORS®"

So the time is now!! Give us a call today to get started in your home purchase!