If this house in Serra Mesa w/ MLS # 090000853 w/ a price of 299,900. What is that mean?

Asked by Sharon, Serra Mesa, San Diego, CA 92123 Sat Feb 28, 2009

Hi all, my husband & I are planning to buy a simple house & we saw this house in our community in Serra Mesa w/ MLS # 090000853 advertised as 299,900 in price. What is that mean? Is that the total price you will pay if you decide to pay in cash? What if I decide to pay it monthly for 30 years. How they compute the payment? How much down payment they will usually ask ? and where we can get assistance for financing or grants? Please help us. Thank you. Sincerely, Sharon

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Dawn Lewis, Agent, San Diego, CA
Sun Mar 8, 2009
Hi Sharon,

This home is and REO or bank owned foreclosure. It has already been reduced in price once. The $299,000 is the price the asset manager has come up with as fair market value after consulting with the REO listing agent, BPO agent and appraiser. This is like a suggested price but is always negotiable. The home has been on the market for over 2 months and I'm sure the bank is ready for an offer. You don't have to buy it for cash - very few home buyers do. You would get financing through a bank or lender to buy the home with on a 15 year or 30 year note. When writing an offer a $1,000 deposit will do but it is preferred to put 1% of the purchase price. If I was writing an offer for you I would ask the bank to pay all of your closing costs so you would not have to incur this expense. There is also an $8000 tax credit for first time home buyers. Contact me I would live to help.


Dawn Lewis

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Isaac Bensus…, , 92037
Mon Mar 2, 2009
Sharon; If you have not owned a home in the last 3 years or if you are a First Time Buyer, you can get tremendous benefits nowadays. You can get $ 8,000 tax credit that could come back to you as a tax refund. This means that if you have not filed your taxes for 2008 you can purchase the property with as low as 3.5% down payment, you can claim the tax benefit and the check for the $ 8,000 tax credit will come back to you in the form of a refund minus whatever you owe on taxes for 2008. Also, if you already filed your tax return for 2008, you can file an ammended return and claim the tax credit and you will receive the tax credit this year. To qualify, the maximum income that you have to earn is no more than $ 75,000 a year for a single person and $ 150,000 for a couple. If you make more money than that, then you do not qualify for this credit. Now, in order to purchase the home, besides of the 3.5% downpayment, you have to make enough money to pay for the home and all your other expenses and also, you need relatively good credit. As Jeffrey, mentioned below, if you belong to the military you can purchase a home with a VA loan that does not require a downpayment. If you need more information please email us or give us a call. All these information needs to be verified by your accountant or attorney. Our website is http://www.besthomesinlajolla.com
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Jeffrey Doug…, , San Diego, CA
Sat Feb 28, 2009
Dear Sharon,

Yes the $299,900 is the asking price of the property. You can choose to offer the Seller cash or a cash down payment with a loan. If you are or have been in the Military there is a VA loan with no down payment, otherwise you can choose an FHA loan which is a 30 year mortgage with approximately 3.5% down payment. Of course there are also conventional loans with are usually 20% down. The loans are then amortized over a 30 year period - for instance if you purchased the home at $299,000 and put 20% down your loan would be $239,200. If you were able to obtain a loan rate of 5.25% your monthly payment would be $1,320.87 for principle & interest. Keep in mind you will still have property taxes and hazard insurance which will add to the monthly payment.

There are a few grants around but not many. I know that if for instance you are a police officer there is a grant to buy the interest rate down. Sharon, the best thing that I can advise you to do is consult a loan agent to explore all of your options and decide the best financing strategy for your needs and goals. First find a good REALTOR that you are comfortable working with - it is important for you to look around and understand the market prices and opportunities in your area of interest. The best properties are selling very quickly - so be sure to see everything in your price range and then have you agent alert you as new homes come on the market. Your REALTOR will be able to give you referrals to excellent loan officers to work on your financing options. Given the right circumstances with your employment and financial situation, this can be an excellent time to buy while rates are so low & the First Time Buyer Tax Credit as long as you intend to hold the home for a while.

I have also posted many articles that relate to first time buyer''s - please visit the link below for more information.

Best of luck!
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Katrina Hami…, Agent, San Diego, CA
Sat Feb 28, 2009
Hi Sharon,

You are correct. This home in Serra Mesa is a bank owned REO property currently listed at $299,000. The bank does require either proof of funds or a pre-approval from a direct lender. I'd be happy to assist. If you are interested in seeing and would like additional information on how to get pre-approved please contact me direct or via my website.

Katrina Hamilton
Direct: 858-405-4407
Web Reference:  http://www.downtownREOs.com
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