Shel-lee Davis

Anthony:

A few of questions:
1. Are you represented by a REALTOR?
2. Did you sign a C.A.R. form SSA - Short Sale Advisory
3. Did you open escrow, remove contingencies and sign loan documents before you had written acceptance of your offer by the Short Sale Lender?

If your answers to any or all of the above are NO then you have the following problem(s)
1. No REALTOR - who has been guiding this transaction? Without someone negotiating on your side, you can find yourself in a very lopsided contract. You might want to contact an attorney to review your situation at this time.
2. No to the SSA - Do you know your rights and the seller's rights in a short sale? The SSA clearly states that the Seller does not and cannot guarantee that the Short Sale Lender will accept your offer and that any costs out of your pocket are your responsibility. The form also would have allowed for you to NOT incur any costs UNTIL the Short Sale lender approved the sale, by beginning your 17 day inspection period at that time, opening escrow and depositing your good faith deposit check at that time, and basically beginning the transaction only after the Short Sale Lender had provided approval.
3. NO to this question means you jumped the gun. Until you have WRITTEN approval of the Short Sale by the Short Sale Lender, you do not have a deal. They have to accept your purchase price as payment in full and agree to pay off and or remove all liens, so you can obtain the property free and clear of liens (which you will need in order to obtain title insurance). I would find it hard to believe that your lender would have drawn loan documents without this, so hopefully you have a written approval. Once that is obtained, I am not aware of how the bank could continue to hold up the closing. This document is their closing instructions to escrow and title. No further action should be needed.

Contacting your agent or an attorney may be your most prudent move at this time. If you would like to contact me directly for further discussion on any of the above feel free to do so. Dare to Dream.

Shel-lee Davis
Real Estat Consultant
RE/MAX Palos Verdes Realty - A few hours ago

Bill:

Riverside County has a 1st Time Homebuyer program that your son might qualify for. Is he married? Maximum income to qualify for this program, which will pay up to 20% of the purchase price is $42,650 for a household size of 2 (but only $37,300 for a household size of 1). There is also $2,000 available for closing costs.

If he does not qualify for this program, then he will at least qualify for MCC. This comes from the federal government, and is a tax credit (not deduction) on your federal tax return. It makes the effective cost of owning a home lower. There are income limits and home price limits, however, based on the information you provided, it would appear he would qualify for this program without difficulty.

Your son might also qualify for CalHFA financing (the last of the true 100% financing in California). Again, there income and purchase price limits. If your son is in a 2 person household with the total income you stated, then he would qualify at the low income level. If not, he would still qualify at the moderate income level.

I recommend that your son work with a great Realtor who specializes in First Time Homebuyers. Most lenders will only offer him the programs they know. A First Time Homebuyer specialist should have enough knowledge of all the available programs to help your son find the right lender with the right program to get him the money. Then they can help him find a great home at a great price and negotiate on his behalf for a great deal. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty - Yesterday, 04:50

Chris:

Based on experience, here are the tricks:
1. Work with a good, highly responsive agent, with great negotiating skills and the drive to make sure you get the home of your dreams.
2. Don't base your offer on asking price, base your offer on market price. Banks are starting to price very low to create bidding wars. Make sure you don't get caught up in the frenzy, however, also make sure you are offering a fair price for the home.
3. Be the first. Get out there and see the home on day 1 or 2 and put in your offer immediately, if you are interested.
4. Make your offer clean and simple. Offer short escrow, shortened inspection periods (we offer 10 days after utilities are turned on for our inspection period), and minimal seller concessions. The banks prefer straightforward offers that do not require a lot of work or thinking on their side. (That being said, I have often found that banks will pay for home warranties and a reasonable, fixed dollar amount towards closing costs. Pick a number at 1-1.5% of purchase price, ONLY if you need the help.)
5. Don't get discouraged. As long as you are a highly qualified buyer, you will get a home. Make sure you are working with a Realtor who is working for you!

In this crazy market, patience and perseverance are the keys to success. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty - Yesterday, 04:26

David:

You hear something new every day. A bank asking for an Appraisal Fee Deposit. This is something new to me. The now defunct Sub-prime mortgage mills maybe, but a bank?

Per my lenders, processing pre-qualifications for serious buyers is part of their marketing. Not one of them asks for a penny up front when pre-qualifying buyers. Although I am located in So Cal, if you would like a lender referral from this area or for my wonderful lender in Sacramento (who I use even down here), please contact me directly. You should be able to shop your loan, if you feel the need, and not have to pay up front for it. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty - Yesterday, 04:04

Thia:

I am confused. If you have enough cash to buy a new home, why would you be selling your home on a short sale? Where is the hardship?

However, in answer to your question, cash is king. As long as you don't have to use credit for the purchase, no one would even know what your credit scores are? - Yesterday, 03:52