Jason Chapin

Hi Daren,

There isn't anything about the fact that a property has been foreclosed that would limit your financing options. Both you and the property have to be underwritten by the otherwise normal standards, but that a property has been foreclosed doesn't by itself have any influence. Your occupancy intentions as well as the property's condition are both factors that influence these loans, though. I'm happy to make mortgage referrals, too, if you need one. Best to speak to a CalHFA and HFA approved broker.

Good luck - there are some great values out there. Especially in the East Bay. I noticed pre-approved short sale condo in Antioch priced at $40,000. Tenants recently paid $1,200 per month. With the new foreclosure requirements here in CA, I think we're going to see greater efforts from certain lenders to accommodate short sales and avoid foreclosure.

Jason Chapin
Urban Bay Properties
415-420-1143
jchapin@ubayp.com - Thu Nov 6 2008, 11:17

Being on the market right now is tough. On the eve of the election, during a turbulent time in the financial markets and while the economic news is so negative, it makes sense that we are generally feeling very conservative. It doesn't help you as a seller, either, that we are in that period of time during the annual cycle where inventory increases and contracts drop.

The annual cycle picks up in March and April. That could be a better time to explore.

Nobody knows what the immediate future holds for the housing market. But it seems we entered a recession more than three months ago and though the feds have taken dramatic steps recently to right the ship it will take some time for things to even out.

I'd encourage you to explore things again in five months, before we enter the April/May/June peak we normally experience.

I live on Potrero Hill, too. Best part of the city! Great views, excellent neighborhood(s), best weather...

Take care, Jason - Thu Oct 30 2008, 16:54

Hi Lisa,

I think there are a few things that are worth factoring. First, with regard to the impending election, you'll generally see market activity slow down before an election. Similar to my friend Danielle Lazier's point below, people tend to become conservative while uncertain. Considering we are entering a period during the annual real estate cycle where inventory is at its peak, you have more flexibilities while constructing an offer.

We normally tend to have greater inventory from the second or third week of October. Since we're seeing more buyers awaiting the results of the election, this phenomenon could be exacerbated. This represents an opportunity for active buyers since sellers have to become more flexible in order to sell.

Another consideration I didn't notice yet in these discussions was the fact that temporary Fannie Mae and FHA limits are going to expire on December 31st. Currently, you can finance up to about $729,000 with a 'conforming jumbo' loan. This exposes you to better rates. After the new year these limits will go down to $625,000.

My last point doesn't have anything to do with the election, but for those in this price range, securing a conforming loan could represent hundreds of dollars worth of savings on a monthly basis.

Are you looking at property yet? Have you met with a mortgage professional? If I can help, please let me know how.

Good luck!

Jason Chapin
jchapin@ubayp.com
415-420-1143 - Wed Oct 22 2008, 12:56

At the end of your interest-only period your thirty year fixed rate mortgage will require you to begin a twenty year amortization period. The additional amount for principle will certainly cause your payments to increase. Probably significantly. How are you doing with the payment now? Where do you anticipate being in six years?

Rates are very good right now. I don't know that you could lower your rate, but amortizing over a thirty year term from now will avoid the payment shock you will experience in six years. Do you anticipate owning the home in six years?

I don't think you'll experience a reduction in interest rate, but you could experience a significant reduction in long term interest paid by beginning to pay down the balance now...

I could be worth exploring with mortgage broker. If you'd like a referral, drop me an email.

Good luck!

Jason Chapin
jchapin@ubayp.com - Fri Oct 17 2008, 09:28

You may be able to qualify for a BMR unit. Give me a call or shoot me an email. I can show you the process. There are a series of things you have to do with the mayor's Office of Housing.

Jason Chapin
415-420-1143
jchapin@ubayp.com - Fri Oct 10 2008, 13:09