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Financing in 95823 : Real Estate Advice

  • All32
  • Local Info4
  • Home Buying12
  • Home Selling2
  • Market Conditions0

Activity 89
Sat Sep 11, 2010
Norm Robert answered:
You may be looking at 5%-10% discount over other offers but it depends on the Sellers motivation. The market is pretty flat right now so the "All Cash" discount is lower than it used to be. In a down market there's a greater urgency to get the property off their books. I know of one bank (I list homes for them) that did a 180 flip on their philosophy in January of this year. Last year they took the first cash offer that was above list price (they priced homes 10% below value). This year they counter the cash offers att the price of the highest financed offer (although rarely successful).
Most banks are countering on short sales now as well. Lowball offers are getting rejected and the banks are looking for close to market value.

Bottom line...Cash is King in a down market. The closer we get to steady appreciation the lower the expected discount for a cash offer. I don't expect much change in the market (in terms of appreciation or depreciation) for the next five years. Good luck - it's a great time to buy but don't get caught up trying to get the lowest price possible; real estate is already on sale.

Target 10% below value for an offer. But remember: Value and List Price are NOT RELATED
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Mon Jan 10, 2011
Anthony Lombardo answered:
Buy an hour with Anthony Geraci (attorney). I saw him speak at a hard money conference and he knew everything from private money financing to setting up hard money mortgage pools. I had a 1 hour phone conference with him to get questions answered and to get information about disclosures in California... An hour well spent. He's at http://www.geracilawfirm.com/

Best of luck to you!

Anthony Lombardo
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Thu Aug 15, 2013
Glen Mitchell answered:
You sound like you might be a good candidate for the making home affordable program. http://makinghomeaffordable.gov/

It's not a quick process, but you have a hardship. Look through the website above and see which program you might qualify under. then give your current bank a call or one of the counseling lines.

Glen Mitchell
Broker
650-260-GLEN




www.coastalrentalslp.com
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0 votes 15 answers Share Flag
Sun Jul 4, 2010
Jim Swanson answered:
For starters, you are calling this your primary residence, and it is not. I'm not a lawyer, but I believe that any lie on the loan application could be considered loan fraud.

I doesn't matter that you have other properties "listed as primary residences". This connotation only relates to the loan and the loan application. Those should have been your primary residence when you bought them. You are allowed to move, and you are not required to sell your previous residence. ... more
0 votes 16 answers Share Flag
Thu Jul 22, 2010
Jim Swanson answered:
I believe the wit time is more like 6 months to refi. The problem will be in getting an appraiser to agree with your determination of value. I'd suggest contacting a loan broker and a direct lender to get different opinions. Current interest rates are still below 5%, so refinancing would not be so painful. ... more
0 votes 2 answers Share Flag
Mon May 17, 2010
Lew Corcoran answered:
There are two loan programs you may wish to consider.

One is the Fannie Mae HomeStyle Renovation Mortgage program. To learn more, go to https://www.efanniemae.com/sf/guides/mtgprod/pdf/homestyleduguidelines.pdf.

The other is the FHA 203(k) Streamline Rehabilitation Loan program. To learn more, go to http://www.hud.gov/offices/hsg/sfh/203k/203kslrp.cfm.

Both loan programs allow you to roll the costs of renovations into the mortgage.
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Mon Apr 12, 2010
FHAFundingPro answered:
Tue Apr 20, 2010
Emelia Sanchez answered:
Hello Dodie,

Your home is owned by a private investor and not willing to modify the terms of the loan. Your choices if you want to keep the house is to make your payments as you had agreed when you signed the promissory note. If you have missed payments ask for a repayment plan to get caught up. If you can not afford to remain in the home call your lender back and ask if the investor would consider a Short Sale or a Deed in Lieu or what alternative are they willing to offer you to avoid foreclosure. ... more
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Fri Apr 9, 2010
Grace Hanamoto answered:
Hello Barry and thanks for your post.

To obtain the best answer for your circumstance, please contact a qualified tax professional or CPA. Unfortunately, as Realtors, we do not have the training necessary to answer your question.

However, to assist you, here is the information directly from the "horse's mouth" (so to speak), in the form of IRS Tax Tip regarding mortgage or debit forgiveness from the website at www.irs.gov.
==================================================================================
IRS Tax Tip 2010-44

If your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income. Here are 10 facts the IRS wants you to know about Mortgage Debt Forgiveness.

1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.

2. The limit is $1 million for a married person filing a separate return.

3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.

4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.

5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.

6. Proceeds of refinanced debt used for other purposes – for example, to pay off credit card debt – do not qualify for the exclusion.

7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.

8. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief provision. In some cases, however, other tax relief provisions – such as insolvency – may be applicable. IRS Form 982 provides more details about these provisions.

9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.

10. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.

For more information about the Mortgage Forgiveness Debt Relief Act of 2007, visit IRS.gov. A good resource is IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments. Taxpayers may obtain a copy of this publication and Form 982 either by downloading them from IRS.gov or by calling 800-TAX-FORM (800-829-3676).
============================================================================

So there you have it, the answer appears to be "no" regarding the funds being considered income. Again, however, for the best answer always consult a tax professional or CPA. Good luck, and if you have any questions about taxes in the future, talk with the IRS at 800-829-1040 or by website at www.irs.gov.

Good luck!!

Sincerely,
Grace Morioka, SRES
Area Pro Realty
San Jose, CA
Email: GraceAreaProRealty@att.net
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0 votes 5 answers Share Flag
Tue Mar 30, 2010
Barbara Van Duyn answered:
HomePath mortgage goes to 90 percent LTV for an investor buying a Homepath REO. That's the only program I have to offer.

Barbara
0 votes 11 answers Share Flag
Thu Aug 15, 2013
Debbie Reinhardt answered:
Hi Judy,
I'm not aware of any 2nd lenders who are reducing the principal balance of loans as of yet, other than in short sales (where the lender(s) agree to let the home be sold for less than the amount owed on it). You might inquire as to whether your lender would allow you to fix the rate on the loan. Make sure to let them know the current value of the property, the fact that you want to keep the property, and what has happened to your financial situation since you took out the loan that makes the payments hard for you to make. Lenders don't want to lose money, but they aren't eager to change your loan or payment terms unless you can make a case that shows them how it's in their best interest to do so.
Good luck!
Debbie Reinhardt
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0 votes 10 answers Share Flag
Wed Oct 28, 2009
Ute Ferdig answered:
Hi Monika. You mentioned that you were told that the loan would not be considered for a loan modification because it's a Freddie Mac loan. I think you received misinformation. Being a Freddie Mac loan does not prevent you from getting a loan modification. There are two types of loan modifications. The traditional loan modification and the loan modification under the Making Homes Affordable Program (MHAP), aka Obama plan. The Obama plan only applies to owner occupied principal residence. The traditional loan modification, on the other hand, applies to investment properties as well, but it's not mandated. It's up to the bank if they want to work with you and unlike the Obama Plan that requires that the loan be modified so that the monthly house payment (PITIA) does not exceed 31% of the borrowers' gross monthly, the traditional loan modification will typically only modify to bring the monthly house payment down to 38-42% of the gross monthly income. They also don't consider HOA dues as part of the monthly house payment while HOA dues are considered under the Obama plan. I suspect that your monthly house payment for the second home does not exceed 38% of your monthly gross which is perhaps the reason why you are running into a wall with Chase. Without knowing your financial situation, I can only guess. I know this is frustrating. Do you have a loan on your principal residence? You may want to explore if you would qualify for a loan modification of the loan on your principal place of residence which would fall under the Obama plan.

Best of luck to you.

Ute Ferdig
Broker-Attorney
DRE # 01326917
Ferdig Real Estate Solutions
(916)751-1267
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0 votes 7 answers Share Flag
Sat Nov 14, 2009
Paul Andres answered:
Marty, your initial deposit is the portion of the 3.5% down payment required for FHA. In addition you will have buyer side closing costs. Depending on how your purchase contract is written you will have additional closing costs on top of your 3.5% down payment which may include title insurance, (a percentage of the purchase price) title and escrow fees, lending fees and a fee for private mortgage insurance (PMI). If the total amount exceeds the amount of available funds for closing you may ask the seller to increase the purchase amount and contribute that amount towards your closing costs. Speak with your loan repa and agent about the amount of funds the lender is willing to allow - in some cases the lender may allow seller contribution towards closing cost up to 6%. ... more
0 votes 7 answers Share Flag
Thu Aug 13, 2009
David Baker answered:
Unfortunately, I deal with this very often. As a consumer, it is important to know if you are working directly with a lender, mortgage banker or mortgage broker. Once you know who plays what role in the financing process, you can begin to hold people accountable. Make notes of who says what and when and do not be afraid to play hardball. Escalate issues as needed in order to get what was promised to you. There is a good chance that someone is not telling the truth somewhere along the lines - and that untruth may lead to mortgage fraud. ... more
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Mon Jul 20, 2009
Sue Archer Reynolds answered:
For the months that you are late, it will be reported.

If you keep all other items on your credit paid on time, you will have less of a hit than if you are late on credit cards as well as your mortgage. ... more
0 votes 2 answers Share Flag
Tue Jul 21, 2009
DeeDee Riley answered:
Hi There,
If you would like to stay in your home, you can try to refinance. Go to http://www.makinghomeaffordable.gov and see if you can qualify for the programs that are part of the stimulus package. If you have either a Fannie Mae or Freddie Mac backed loan you can refinance up to 125% of your home's value. There are links on that site that help you determine if your loan is backed by one of them. If the link at the top of my note isn't highlighted for you just copy and paste it into your browser address area.
Best of luck to you!
DeeDee
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0 votes 9 answers Share Flag
Mon Jul 20, 2009
David Chamberlain answered:
If you just got a loan on that rental, you need to look at your mortgage docs to see when you can refi. You will probably owe a fee if you refi to soon.
0 votes 8 answers Share Flag
Sun Jul 19, 2009
Ed Favinger answered:
Angela...

Naw.. you're not hopeless... you're just lacking some information...

If you haven't already, I'd hook up with a loan guy that is familiar with income property...

If you are intending to live in one unit and rent the others, you will qualify for an FHA loan.. which is not really a FICO driven loan.. it's a little differant...and don't get me wrong credit is important... but it's not necessarily based on a FICO score..

You only have to put down 3.5% of the sales price just like a single family home.. which is kind of nice...

Your score is a little low and like I said earlier.. get hooked up with a loan guy and start your application.

I think you folks are making a smart move and I wish more buyers would consider this kind of investment...

If you need references for a loan person because you don't have one.. drop a note and I'll hook you up with one.

I hope this helps...

In the mean time...?

Make it a great day...!!!
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0 votes 8 answers Share Flag
Tue Sep 15, 2009
Robert Spinosa answered:
Don't Panic Soon,

E-mail me and I will send you a flowchart of options available to distressed homeowners.

Rob Spinosa
rspinosa@mortgagemasterinc.com
0 votes 7 answers Share Flag
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