Have you considered putting down 10%, getting a 1st mortgage for 80%, a 2nd mortgage for the remaining 10%? It's called an "80/10/10" and it'll allow you to avoid paying all forms of PMI without putting down 20%. The 2nd mortgage interest rates are usually a little higher than the 1st mortgage, but it's just another option for you to compare.
Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct... more
Not if the lender knows what they are doing. I have had to prove to underwriters that they also do not count FHA, Va or private money loans. Each lender may have their own guideline on this though.
Keep in mind, they will count it against their ratios.
If you need a lender to help you with this, I typically work on the more complex scenarios.
Mortgages / Business Funding/ Real Estate
9555 Warner Av. D Fountain Valley Ca 94708
Licensed by the CA Department of Real Estate License 01080071 NMLS License 287206
Equal Housing Lender... more
I do know BoA offers this for Doctors and Dentists. It is a special program with limited availability. Let me know if you qualify as a medical professional I will put you in contact with my banking partner. I also know of a lender that will do a 80/10/10 to avoid the PMI - Open to most others. Does that also interest you? Let me know.
Dr. Larry Webb, MBA
Broker Associate - REALTOR
Century 21 Fine Homes and Estates
Website/Video Biography: www.DrLarryWebb.com
The market has changed in recent months. Earlier this year you probably could have sold your home through FSBO with very little effort. However, now we are back to a more balanced market with decent inventory of available homes. Most sellers are getting a reality check on what buyers will actually pay for their home and many are having to reduce their price just to get showings, let alone offers. Furthermore, the recent spike in mortgage rates, the 15% gain in values since last year and other factors like back-to-school and Syria have definitely had an affect on the real estate market. Realtors are having to pull out all the stops and use every marketing technique available to them to get their listings sold. I know - I've sold 2 listings in the past month - one of which sat idle for nearly a month with very little activity before I realized the shift in the market. It's in Mission Viejo - a beautiful 4 bedroom, 3 bath, pool home (2,500+sf). It was very well priced but there were just too many other homes in that price range that attracted buyers. So, I stepped up my marketing campaign and poured money into getting that listing noticed and it finally sold (without a price reduction!)
I'd very much like to partner with you to sell your home. Please contact me to discuss options. If you still decide to sell the home yourself perhaps I can give you some suggestions on how to best get it noticed.
- Jeff Hale, Realtor
Century 21 Beachside
My office has a FSBO deal that I think you might like, Please go to our website , www.OCflatfeemls.com and see what we can offer you to get the best possible marketing and your property viewed by over 20,000 agents.
I would love to help you with setting this up if you think this is a avenue that would benefit your sale of the home, which I believe is a very inexpensive but very valuable way to reach potential clients.
You will also stop getting calls from agents asking to list your property once you have used this process.
Let me know if this is something I can help you with? Please feel free to call Sean Rees Or Moka at 714-944-9618 with questions .
While prices have risen in the last several months, you may still be able to buy an investment property in Chandler for an affordable price. I'm sure there are some great agents on this site who cover Maricopa County who will happily assist you. If you'd prefer for me to refer an agent, I will gladly do so.... more
You definitely need to know the comps first, because if it is a short sale listing agents usually list below market value to attract alot of buyers, but that doesn't mean it will sell at that price. The reason being the bank will send out an appraiser prior to accepting an offer to make sure they are getting close to market value. If you really love and know the factual value, then you should write a strong offer with no regrets. The market is stablizing, and take advantage of the great rates. We may never see these low rates again.... more
It will show your payments are on time, but your loan balance is going to go up. Typically loan mods are interest only, and some are negative amoritization, which means your payment will not even pay all the interest due. So your balance will actually increase. But that's OK for some of us, if it keeps you a house you love, and children in the same school. Just be prepared that at the end of 3-5 years they readjust the payment back to a fully amoritized payment which could cause it to increase dramatically. If you pay on time and improve your credit, after a year you could fully refinance and have a great new loan with low interest rate. Hang in there!... more
Yikes - this is a super old question (based on the date that Karie first posted it in May of 2008) - but since the market and the banks' processes have changed so much in these two years, an update may help other people who have the same question TODAY.
Let's start at the very begnining, since a foreclosure can have multiple meanings. If a home is "in foreclosure" this may mean that the owner has missed a couple of mortgage payments and a Notice of Default (NOD) has been filed. An NOD is a matter of public record, and many people watch the NOD lists regularly to identify potential opportunities. Some investors may actually solicit the home owner who has received an NOD directly, offer to buy the home to get him/her out from under the mortgage burden. Many Realtors today solicit NOD recipients - to see who may benefit from selling their home as a Short Sale. In fact, this home may never come on the retail market. The owner may bring the payments current, or may negotiate a Loan Modification.
If a home has "been foreclosed" that means the owner's bank followed the foreclosure process all the way through to the end and the home either sold at auction on the local court house steps, or reverted to the bank's possession. Either way, the owner has lost the house, a sad state of affairs, for sure. If it did revert to the bank's possession, they will either list it immediately into the retail market through a local REO listing agent, and it willl pop onto the local MLS as a Bank Owned home or REO. The timing on this can be tricky. If the former owner left any personal propety deemed to be worth more that $300 at a garage sale, then the bank is legally requiered to post a Personal Property Eviction notice to give the former owner an opportunity to re-claim their property. The bank cannot allow the REO agent to list the home for sale or market the home during this period.
Once the PPN has expired, the Listing Agent completes a lentghy and detailed Broker Price Opinion report for the Asset Manager at the bank. Most banks include an opportunity for the Listing Agent to recommend repairs that should be made to help the bank net a higher amount upon the sale of the home. Paint, carpet, appliances, and water damange are the most typical repairs I have see the banks pay for prior to listing. What I know about Asset Managers it this: they all have targets they are trying to make, they all have preferenes in their approach to repairs and list prices. It really annoys me when people say "the bank did this" or ""the bank did that." My preference is to focus on the person at the bank who's responsibility it is to make assessments and decisions. I have had Asset Managers from the same bank make completely different choice in repairs and pricing. They are human beings with different buttons and they have the latitude to make their own decisions. Some are conservate, some are agressive. And to top it off, they work with homes all over the county - they have to rely on the Listing Agents local expertise. The Asset Manger is the person who determines the list price of the home. While all REO homes for sale are listed in AS IS condition, the Asset Manager relys on the Listing Agent's recommendations, then makes their own decisions. So that's the "been foreclosed" answer. Hope it helps. Oh - regarding how hard it is to buy one, not really hard at all in today's market. The Home Buyer Tax Credit has expired, and buyer demand has receeded. Usually it takes 2 - 5 business days to get an answer from the bank on an offer to purchase an REO. Then another 3- 5 days to get final approval and open escrow. Most banks today are requiring a 30 day escrow, shorter for cash buyers.
In the case of a Short Sale, many lenders, like Bank of America have implemented automated systems to streamline an expedite the Short Sale process - a big improvement over the overburdened Short Sale processing staffs on board at most banks in 2008. The process is typically 2 - 5 months from initial offer to approval to open escrow. And the banks will ususally as for a 30 day escrow upon approval. The tricky thing in the current market is that buyers are making multiple offers, since the outcome is so unsure. So many times when the bank renders a decision, the buyer is no longer interested.
Again, hope this helps bring this thread up to date!
Realtor, Altrea Real Estate
Mission Viejo, CA
Guest Blogger in the Orange County Register Sunday Real Estate Section:
This property, actually spelled PalaNca, was offered at $500k, and the listing agent put it on status "B" on 4/18, six days after it was listed, and 5 days after the initial question was posted.
Here we are 2 months later, and we don't know whether there were multiple offers submitted, or whether one of those offers will either be accepted by the lender, or counter-offered, closer to actual market value. ( recent sales.)
So, Brij? Are you the successful bidder, waiting for the lender's response?... more