Mahar, If you are a first time buyer then my advice is to NOT go with an FHA loan. Rather consider what my staff has been advising clients, the "FIRST-TIME HOMEBUYER'S" loan program. Our staff has reported great testimonies in regard.
Below is an email we sent to various clients we are working with:
Notice to first time home buyers in California. BBVA-Compass has a new program available.
DO NOT GO FHA or PLACE 10% DOWN !
Here are the highlights of this unmatched program that our agents have had success with closing deals and saving our clients a lot of money.
1. NO Mortgage Insurance
2. Only 5% down
3. 30 year fixed rate (5.250% estimated)
4. NO payment until the 5th month after closing. (Bank is waiving the interest)
5. NO origination fee, NO points, and NO junk fees !
6. single family home or townhome eligible
7. 680 credit score
8. flexible approvals
** FHA nor FNMA can not touch this program. It is truly remarkable, and is certainly a way this bank (BBVA-Compass) has demonstrated giving back to the communities it serves.
The Sr. Mortgage Banker that my staff in the area is using is Tom R. Callahan and you may reach him at
Take full advantage of this program and save yourself a lot of money by not having the new FHA 1.00 MIP + .90% / monthly which is totally ridiculous!
Good luck shopping for the right home. TJ, PhD / Attorney... more
We, as realtors can not comment on the specifics of neighborhoods as it is considered steering and it's considered unethical. Here is a website that will give you information any area, you can check any sort of crime activity and such. If you need a website for schools, I will be happy to provide that as well.
I'm a licensed lender as well as Realtor, I haven't run across this lately, but in the past underwriters treated it like a BK if it was disclosed. In some instances the creditors continue to show running lates on accounts which they have a reduced payment agreement on, so the scores drop and it appears they are significantly behind.
I wouldn't make any snap judgments though. Different companies have worked in different ways. Get them in front of your lender of choice right away and have their credit pulled. Once you they see that, you'll have an answer you can work from.... more
This goes to Richard,
Obviously you are not a Realtor but you are a so called pro because you buy houses from distressed people who are losing them at the cheapest possible price. You consider us like Car Salesman's because all we want is the sale, but let's see you will low ball seller's and tell them that is the best they can do so you can buy that house and make a profit, correct?
I have worked with many sellers and buyer's and have Realtor friends who have worked with them and have negotiated deals where it was a win-win for everyone not just the Realtor, who makes the commission as you put it. I have taken less money on deals that did not pay the bills so a client could get out of there situation and move on, so was it about the money? no It is helping people who need help to get back on there feet. The Realtor's you have worked with I feel sorry for you because we are all not like that.
Having said that, third party negotiator's have a place and I have used them as well. Shorts sales take a lot of time and third party negotiators will keep working on it until they are done, unless the deal can't be done.
A good Realtor will look out for his (her) clients best interest and make decisions based on them not us.... more
You can not purchase a home now. You will have to wait for some time. As the underwriting guidelines change the ability to purchase a home when you where foreclosed on may change. The typical time frame today is 5 years from the foreclosure.
The best thing is to plan what you want in the future and start improving your credit and saving a down payment. Also reduce other debts to make your total expenses as low as possible. The key is to manage your income and expenses to ensure you can afford your home in a changing world
First Weber Group
Certified Distressed Property Expert
There is a important misconception out there about contract law, and contingencies in contracts, that I have noticed have become increasingly more commonplace as - imho -many agents in the marketplace have become sloppy and complacent with their contracts. Just because "in practice", usually, one is easily let out of a short sale commitment when the bank has not yet replied, does not mean that legally you are off the hook.
When you make an offer on a short sale, you are asking the seller to risk that your offer will still be there when the bank comes back, and there is a timeframe agreed upon that this period of time is reasonable. That timeframe should be found in your short sale addendum. If a buyer does not honor that commitment to wait until that time frame has elapsed, he may be considered to be in breach of contract and may not necessarily be automatically entitled to an instant release of his earnest money deposit. The buyer has harmed the seller by not standing by it's commitment to wait, and caused the seller to be in risk of foreclosure now, because if he had known you wouldn't wait, he may have chosen a different offer to present to the lender.
Now, there are certainly dozens of other contingencies that have not been met, and each one would be an excuse to get out of contract, but in a strict sense, the buyer doesn't simply have the right to cancel because he's tired of waiting and found something better.
It's important that we understand what we are doing in contracts. I'm concerned with the "laizzez-faire" practices that much of our industry has adopted in response to the difficult circumstances surrounding short sales and foreclosures. We need to continually remind ourselves that we, as brokers are responsible for understanding the strict legal ramifications of the actions we counsel our clients to take.... more
I have been doing my own comps. Homes that are identical (identical in size, and appearance), sold for around $510k but they were in better condition. I offered low with the expectation that they'd counter offer me to that range anyways.
My comps were mainly distressed properties though. There are identical properties that are regular sales that are asking really high, but has been on the market for a long time.
Maybe I'll have waited 4 months to get a rejection. I'm willing to pay more for the property though. I'm just hoping for a counter offer, and not a rejection (if they don't accept the offer that is).... more
I just helped a buyer get into a house after a similar situation -- bankruptcy 2+ years ago. I don't know how the lender did it, but the buyer did his part, re-established credit, and continued working at a high-paying job. So, a lot will depend on a few factors and finding a lender who knows how to put the package together. Of course, the interest rate will definitely be slightly higher for anyone with this type of credit profile, but, given the lower priced homes in most areas, it still makes sense to buy now.... more
If it's already been foreclosed, and right before it was foreclosed, you should have received a notice posted on the front door.
You will also receive a notice to vacate.
Depending on the foreclosing bank -- some of them may allow you to stay for a period of time while they prepare the paperwork to have it listed for sale by a realtor.
Since you are no longer the owners, the rightful owner, the bank, has the law on their side to evict you. Even if you hire a lawyer, that lawyer may give you some advice but the final outcome may still lead to your needing to vacate or be forcibly evicted.
If you had tried to sell through a short sale, you may have had more time to prepare for your next living arrangements, and also made sure your credit isn't damaged as severely by a foreclosure.
Sorry you lost your home...but it's time for you to move on.... more
First of all, the prices in many areas in and around Daly City have adjusted due to the economy and the high number of foreclosures and pre-foreclosures. Many of the properties in Daly City at one point were commanding prices that far exceeded the capacity of all but a few to buy with a traditional mortgage, and thus these sales were built on financing that incorporated two loans, a first and a second deed of trust. If you were to look further into this, you'll find this to be the case with a high percentage of these properties. "Inexpensive" as you put it, in today's new real estate market, is about 30 to 40 percent off what had been the norm. So, if you're in the market to buy something a bit more affordably, now would be a great time to do so. Oh, if you're planning to buy a short sale property, there are many things to consider. Bank owned is another story. I would like to walk you through the differences if you're interested.
J. Mario Preza, CRB
DRE 00668667... more
You are correct that the HOA can lien your property and does have the right to foreclose. As for locking you out of your home and amenities I think that is wrong/incorrect. Read your HOA documents. There are a lot of people behind on payments, mortgage, taxes and HOA and this is the first I heard of this threat.... more
Hey David , I got the perfect house for you !!! 628 Macarthur Drive , in Broadmoor area. 3 bedrooms , 2 bathrooms, gleaming hardwood floors, new carpet, granite counter top, reccessed lightings, crown mouldings, designer's paint and the best part is : it's a REGUAR SALE ,, so no waiting !! Buyers are tired on short sales because approvals takes forever .
Email me email@example.com , or call me (650) 520-7770 .. I can help .. Take care.
Thez Santos, Broker /Owner
TS Global Realty... more
You can negotiate the 5% difference to make this close.
Did the seller counter with you comming up with the difference if it didn't appraise at the amount you offered ?
If not, have your agent talk to the listing agent and have the seller rewrite the contract.
Hope this helps,
Jes Sierra, B.Sc., Realtor®... more
Inspections are always a good idea; it gives you a proffessional opinion about the current state of the building. If it is an REO the lender does not have to tell you if someone died in the property within the last 3 years as is usually required, if it is a short sale the seller will have to let you know on a standard disclosure form.
It is little important details like the ones that came up in your questions that make it a good idea to get the help of a local agent like me that know the area and the local customs well. Remember the seller will pay for my services, I have years of experience and we have insurance.
For your peace of Mind!
Andre Mettler-Century21 Alliance, Daly City, CA
Cell 650 303-2520... more
Yes you are not held responsible for taxes of any property till ownership and title transferred to you.
Your buyers agent, mortgage broker, or title company can explain these details.
Some paperwork can get confusing when you review settlement statement at closing
National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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