Steve Mohseni

I am not sure if you mean that you will put 10% of your own and second 10% comes from Dublin's first time homebuyer program. Assuming the above, there are lender program's that have a built-in PMI for a slightly higher interest rate avoiding upfront MI fee and MI monthly payment.

To answer your question generally, YES there will be a PMI unless you put 20% of your own money or combined your own money and gift from some family member. You can always consider pulling some out of your 401K if available without early withdrawal penalty since stock market is not doing that great at this time in order to bring your down payment amount to a level that would eliminate MI requirement.

Hope this answered your question. Good luck and let us know how things go. - Sat Nov 1 2008, 12:09

Cal,

The property in question is not for sale. What you are looking it is only a public notice of default, meaning that the current homeowner has been late in their mortgage payment. Historically speaking, borrowers will end up curing such defaults one way or another and cure their loan. However, if this is to continue, the trustee will end up trying to sell the property a later date (no sooner than approx. 4 months from the initial default date).

Cal, the reality is that there is lots of information available online, however you need a trusted advisor to guide you through all these information sometimes bogus and provide you with accurate and valuable information so you can make a good decision along the way.

I recommend you contact a real estate professional, a Realtor and let him/her take you through the proper steps from the initial discovery phase to strategy planning and of course through negotiation of an ideal home for you and your family. It is not really that complicated process so long as you have a right advisor on your side.

Please do not hesitate to call my office if there is an opportunity to assist you and earn your business. That is why we are here. Best of luck. - Thu Oct 30 2008, 05:45

Jojo,

1) Laguna Vista is an older development (36 years old) and comes with it higher ongoing maintenance cost and increase in HOA fee. Although the current monthly dues at Laguna Vista HOA is only $225 per MLS and considered average and not high, it concerns me to know whether they keep good books and enough reserves or whether they keep up their community properly. This is not to say that they are not, it is only an indication to me that as a buyer I need to carefully review the pertinent HOA docs and investigate their financial well-being as part of my due diligence. You normally will receive such information as part of the general disclosures during your contingency period.

2) You also want to check the owner occupancy percentage of the community you are going to invest in. the lower this percentage meaning that there are more absentee owners and investors; hence less pride of ownership and higher chance of defaults. Higher default meaning more uncollected dues and higher burden on HOA finances. Lenders take a look at this ratio and will not lend on HOA's with high percentage of absentee owners; hence making the initial loan acquisition and its resale a challenge.

As far as the other property you are referring to with 1028SF, I believe you are referring to the ones on Norton Way. If so, they are not in Vintage Terrace. HOA fees there are a bit high and unfortunately that community is not my favorite either :-( - Thu Oct 30 2008, 05:26

Jojo,

Well...easy answer is that every real estate investment is a good one so long as you allow it time and can sustain the expenses for a long term. I think everyone's answer was good; however here are some bullets to mention; some repeated:

1) First, you have to identify your investment goal? Do you need cash flow? or can you afford some negative cash flow? Sounds like you are looking for long term investment and potential appreciation not immediate cash flow, right?
2) As Steven mentioned, speaking with you CPA/Tax Advisor is crucial as it may shift your investment strategy.
3) The condo you are referring to is in Laguna Vista, an older development. It may be attractive since it carries a Pleasanton address, but it is one of the least appealing developments in Pleasanton. There are other areas you may want to consider where you can purchase around the same price range but much newer property, hence less maintenance expenses and or lower HOA fees.
4) Short sale; no guarantee you will be able to buy it after lender’s review of the short sale, what you end up having to pay for it, how long you have to wait to find out…..Perhaps searching for a straight REO is a better approach
5) As Lucy mentioned, some of the allowable deductions depend on what your annual household income is. Also, whether you can consider possible losses as active or passive losses.
6) As Brian mentioned, lending guidelines are changing on daily basis and consulting your mortgage consultant is also imperative as part of your initial planning. Borrowing on investment properties has become more stringent and you do not want surprises along the way. Even with 20% down payment, your loan application has to be fully documented. Furthermore, I know that occupancy rate in Laguna Vista is pretty low and may make it impossible to obtain financing.

As you see, there are few items to ponder on and consult with your advisor. I believe it would be a good idea to identify a real estate consultant first and let him/her take you through the process, wouldn’t you think?

Over 50% of my client’s purchases this year has been investment properties. I am well-versed with the topic and would love to offer you a complimentary session to further explore your objective at no obligation. You can reach me at http://www.BayAreaHomeFinder.com or 925-484-0707. - Tue Oct 28 2008, 01:37

Dear CC,

Most important step for you to take is to call and let them know your situation. You obviously need to prove that you cannot afford to pay them your current mortgage, what your hardship is and what has changed since you took out the loan causing you to be unable to pay your regular mortgage. It is inevitable that in this market environment, any lender including Well Fargo do not want another property foreclose on them and most likely will work with you to modify your loan so long as you can support your claim.

I want you to explore the above option first and not consider foreclosing as a foreclosure will put a huge scar on your credit profile which will take you several years to recover. There are companies out there that can assist you and act in your behalf to work with your lender and renegotiate the terms of your loan for a flat fee. Let me know if you need more help on this and I can steer you in a right direction.

Best of luck to you…let us know how it goes, - Thu Oct 30 2008, 04:37

Dear Potential Homebuyer,

You are asking about the developers' guideline to work with a Realtor. In order for a Realtor to be involved and get compensated, he or she normally has to accompany you at the first visit and register you with the builder. The builders are normally pretty strict with this requirement, however you can always check with them to find out whether they can make any exceptions...chances are these days, they would work with you and respond favorably.

I am pleased that you have determined to work with a Realtor and seek his/her advice as Realtors are truly consumer’s advocates. Based on California Association of Realtors code of ethics, we do and should have the best interest of our clients in mind. A developer's sale representative is not obligated to you to this extend. Furthermore, a Realtor can assist you with determination of right financing program, an ideal selection of your upgrades with resale in mind.

Our current market is a buyer's market and I believe you are making a good decision to be shopping for a home in this market. Developers are anxious to move their products, offer attractive incentives and I am sure you can negotiate a real good deal.

Good luck and let us know how everything works out for you. - Tue Oct 28 2008, 02:14