Homeowner Tax Benefits

- Mortgage debt relief on up to 2 million loss ($1M if married / filing separate)

Will California extend our debt relief? The answer is still up in the air, but there is a bill on the table. This concerns many homeowners who are thinking about a short sale, so be sure to contact your legislators and let them know you want an extension!

Energy Tax Credits for Homeowners

- many have a $500 max lifetime credit
- some include on site installation costs, some don’t, so be sure to check
- must be on principal residence
- includes central air
- allows tankless water heaters
- solar
- geothermal
- energy star

California Short Sale Tax Benefits

Sb931 focuses on 1st Trust Deed, and ensures lien holders can’t come back to homeowners for deficiency judgement after the short sale.

Sb458 focuses on 2nd trust deeds, and this law came a little after sb931 to help homeowners steer clear of judgements from 2nd mortgages and HELOCs.

Equity Sale Tax Benefits

- No taxes on $500k profit for married couples
- No tax on $250k profit for single filers

Capital Gains Taxes

Will you be taxed if you sell for a profit? Yes, unless your profit is below the $500k/$250k mentioned above.

- Long term (1 year and one day+) is determined on your tax bracket
- It’s best to keep your home ‘long term’ when it comes to taxation

First Time Homebuyer Tax Credit

- 2008 credit – when your home is no longer your personal residence, the balance of repayment becomes due immediately instead of over 15 years, so be careful!

-2009-2010 credit – 36 months of primary residence is required, most of you are almost ready to move up with no penalties

Wow!! Taxes are confusing!!! Make sure to consider your tax benefits and / or penalties when you go to sell your home in Orange County. Irene’s number is 714-957-6936 if you’d like more info.

Remember The Weeks Team is here to help you navigate through tough real estate waters. Be sure to call 877-230-3211 or comment here if we can help you in any way!

Orange County wants to offer a MORTGAGE CREDIT CERTIFICATE to all home buyers who have not owned property in the past 3 years. It is allowing everyone the opportunity to restart and get back into that home they were once in or into their very 1st home. The County is offering a tax credit of 15%  for the mortgage interest paid each year. It’s a dollar for dollar reduction against your federal tax liability. Credit is available for the life of the loan and can be re-issued if the loan is refinanced. Income limitation is about $111,600.00 annually for a family of two and purchase price limitation is about $665,000.00. For example if the borrower is paying  $1800.00 mortgage payment per month  and $1,200.00 of the payment is the interest he or she will receive $1,200.00X15%= $180.00 tax credit per month or about $2,160.00 per year. I am waiting to get the most up dated info from MCC for 2013, as soon as I receive the information I will forward it to you.

Information Provided by Abe Sedaghati. Check out this link for a chart Abe has provided us with similar details Financing Attachment Epreadsheet

Don’t hesitate to contact The Weeks Team with any other information regarding New Home Purchases.

The Weeks Team
1-877-230-3211
Angie@AskAngie.com

-BRB

Hello Buyers! A brand new condo is coming on the market in the community, Arroyo Santiago, of Orange. The Orange Condo is a very beautiful Sanctuary with 2 beds and 2 full baths. While enjoying your quiet little private patio, you can get a beautiful view of the city lights and voluptuous view of the mountains in the distance as well. The community has beautiful walkways and parks throughout. The Condo has a warm cozy fireplace for all to cuddle up and stay warm in the living room for the chilly holidays. The condo has some beautiful new lighting and fans throughout, along with freshly painted walls and brand new carpet installed as well. The Community is a small quiet community that consists of only 71 units.  If you or someone you may know is interested please don’t hesitate to give The Weeks Team a call. (949) 388 – 7408

Address:
3340 E Collins Ave.
Orange, Ca 92867

The Weeks Team
angie@askangie.com
949 388 7408

The Community of Madrid in Mission Viejo

Madrid of Mission Viejo is the perfect place to get that home you have been looking for, for that price you have been wanting. Check out a few of the statistics below…

Active Listings:  6
Within the Past Year…
Closed Listings in past year:  54
Avg Sale price:  $351,387
Avg Days on Market:  63

Madrid has a very diverse range of ages in the community but the chart shows us a little more in detail of the specific ages you may want to live with. Another great reason to make this decision would be because of the very low crime rates for the area and let alone all of Orange County has very little crime.

Hope all this info gives you enough reasoning to check out Madrid in Mission Viejo. Don’t hesitate to give The Weeks Team a call with any information regarding this community or any real estate information you would like to learn or know about.

The Weeks Team
1-877-230-3211
angie@askangie.com
Properties.AskAngie.com

As mentioned in our recent video summary on YouTube (embedded below), Leslie stated California Realty is a “Bright Spot in the California Economy; and that the bottom has been reached and is on its way up.”  We also found demand is starting to grow, big time!  83% of Real Estate investors are buying to hold.  57% of homes in Orange County are recieveing multiple offers of more than asking.  There are an average of 4.3 offers per property!!!  Homes are flying off the market right now as well – the average days on the MLS is cut in half from a year prior.  Southern California Median home prices are up 14.3 %. Things are looking much better for Orange County and California real estate in general…great news!!

Are you ready to get your Orange County home on the market and upgrade?  Call The Weeks Team…877-230-3211

CALIFORNIA REAL ESTATE FORECAST 2013

http://www.car.org/marketdata/data/phsi/

f = forecast

Contact info:
The Weeks Team
949 – 338 – 7408
angie@askangie.com

• Active - indicates the property is on the market and accepting buyer offers.
• Backup – means the home has technically accepted a buyer offer and is sold, but the buyer is still in his/her contingency period of due diligence investigations and full loan approval.  California buyers get 17 days after offer acceptance to complete all contingencies and inspections.
• Pending – implies all contingencies have been removed on this listing and its only a matter of time until close.
• Closed – entails the buyer’s loan has funded, and title has officially recorded in the new owner’s name.

There are a few other status’ you may see:

• Hold – property is on hold and not being shown to new buyers for various reasons. (there are 36 of those right now)
• Cancelled – means the property listing was cancelled by the owner before a sale took place.
• Expired – indicates the listing agreement on the home for sale expired before a sale occurred.
• Withdrawn – similar to cancelled status, this property has been withdrawn from the market.

Current Mission Viejo Real Estate Statistics

Active: 108
Attached: 19
Detached: 89

Back Up: 154

Pending: 107

Closed (last 30 days): 114

Now lets compare these stats with last years Mission Viejo home statistics.

Average Sale Price in Mission Viejo 1 Year Ago: $416,951
Average Sale Price in MV in the Past 30 Days: $428,500

Avg. Square foot price 1 year ago: $231.31
Avg. Square foot price Today: $280.77

Avg. Days on Market 1 year ago: 93
Avg. Days on the Market Now: 76

We are currently moving towards a seller’s market in Mission Viejo.  There are an average of 4.5 offers for every one property, and we are seeing properties sell in 1 day or even before they hit the MLS!!  Now is a perfect time to move up and get more square footage for less than ever before. If your interested in upgrading your home, or adding to your Mission Viejo real estate portfolio, please contact The Weeks Team 888-281-7665 for more info on how you can take advantage of this ideal real estate opportunity!

Orange County houses and the effects of homeownership on kids

We recently read an interesting article by Tara Steele in AGbeat.com about the affects of homeownership on children.  Have you ever thought about how owning a home has influenced your kids?  Has it at all?  According to the article, children had lower dropout rates and lower teen birth rates if they lived in a home their parents owned.This research is consistent with Habitat for Humanity’s as well.  Habitat has been studying the effects of homeownership on kids for years.  Here are some great benefits they have discovered:

Compared to children of renters (of the same age, income, race, etc.), children of homeowners:

• Are 25% more likely to graduate from high school
• Are 116% more likely to graduate from college
• Are 20% less likely to become teenage mothers
• Have 9% higher math scores
• Have 7% higher reading scores
• Have 3% fewer behavior problems
• Are 59% more likely to own a home within 10 years of moving from parent’s household
• Save taxpayers an estimated $34,000 in public expenditures (i.e. the cost of juvenile delinquency, teenage pregnancy, etc.) that would have been spent had they remained in rented housing.

Why Bother with an Orange County House?

Well, do it for your kids!  And for yourself.  One of the things today’s article mentioned was the duration doesn’t matter: “The impact of homeownership is particularly important for households with short lengths of tenure.”  This is new insight as previous studies did not really consider short term effects of homeownership.  Many of our clients choose to rent because they are not sure how long a particular job will last, or if they will stay in California for years to come.  With our current market, it really doesn’t matter because rent vs own prices are very similiar.  As most already know, owning will have much greater financial benefits in the long run.  Now it looks like it also has greater benefits to the family as a whole!

What is owning a home teaching your children?  Consistenty?  Commitment?  Finances?  There are so many ways to set a good example to your children through homeownership.  Not that they couldn’t learn these things from a family who is renting, but as the article says, you have more “skin in the game” when you own a home.  No, owning an Orange County house won’t guarantee your child wins the spelling bee or gets a scholarship, but it does teach them some very valuable long term lessons.

If you would like to explore more about what homeownership could mean to you and your family, please register to search for Orange County houses on our http://properties.askangie.com website today, or call us toll free at 877-230-3211.

Thinking about renting your house and buying another? Selling your Orange County home and moving up? Let’s do the math!

1. Our interest rates are so good right now that you can probably get MORE house for the same amount of money you are currently paying. 
2. You’ll be building your investments through your real estate portfolio
3. Rental properties create residual income

How do you go about confirming you’re a good candidate to move up or invest?  There’s a few considerations you’ll want to look into before jumping in on a second or third property.  Ask yourself the following questions:

1. Do I have any equity in my first property?  Most lenders require you to have at least 30% equity.
2. Do I have at least 3.5% saved for a down payment on the new property?  Remember you can use your IRA or gift money in many cases too. 
3. Do I have at least 3 months reserve income to make the mortgage on BOTH properties? 

If the answer is no, then it’s probably best for you to simply sell your existing house or condo and move up to a better property.  Again, you’ll get more house for your money  But, if you have all of the above, now is a GREAT time to consider investing in real estate.  Orange County real estate is a great investment because Southern California is such a desired area.  Everyone wants to live in the OC!!

Let’s get into the math.  Scenario 1:  “I’ll wait until the market goes down more”

Property value:  300K
Move up range:  400K

Market adjustment:  -10%

You lose: 30K
Move up decreases: 40K

At first it seems like ‘waiting’ gained you 10K.  But now your existing property doesn’t have enough equity in it to apply your proceeds toward a conventional loan.  You needed that 30K to put down so you didn’t have to do FHA financing, pay mortgage insurance, and deal with a higher interest rate.  If interest rates go up even .5% in this time (which they really have nowhere to go but up) then you REALLY made a mistake waiting

Scenario 2:  “Let’s DO this!”

Property value:  300K
Move up range:  400K

Market adjustment:  -10%

Equity decreases: 40K

At first this math hurts a little.  It looks like you lost 40K.  But did you really?  Only if you choose to cash out after the adjustment.  Property is all about strategically holding.  If you hold, you’ve got a low low interest rate locked in on a better property than your first one.  And your payment is only a little more.  How much is the pool, the walk in closet, the extra bedroom, the lack of paying an HOA worth to you?  Aren’t you more ‘at home’ now that you moved up? 

Let’s take that homebuying math in the opposite direction…………say prices INCREASE 10%.  If you stayed, you’ve got 30K more, but your move up property is 40K more.  How long does it take for you to save 10K?  Would it have been easier to ‘autosave’ it by buying the bigger property before prices spiked?  And what if interest rates went up?  Can you even afford to buy the bigger property now?  You could be stuck because the payment on a 440K property just isn’t affordable. 

On the other hand, if you DID decide to buy the bigger property… your loan and payment are locked in low, you have a more comfortable lifestyle, AND a bigger bank account.   

This is why so many Orange County home owners are moving up in today’s market.  Its all about strategic, calculated risk.  If you’d like to meet with us to crunch numbers we do consultations like this every day.  Sometimes we say to ‘stay put’, sometimes we say to ‘get moving’   What’s best for your future?!  Call us at 877-230-3211 and let’s create a strategy for your real estate portfolio!

I received a disturbing email today that could, in the words of one of our OCAR board members Wally Malesh, ‘be the most detrimential decision for California real estate in the last 30 years’.  For the sake of your home and those of your family, I encourage you to take action according to the instructions here.  Both Realtors and homeowners need to speak up and let the truth be known!  So I don’t get any of the info wrong, I’m simply going to copy / paste the email from California Association of Realtors:

C.A.R. is issuing a Red Alert to ALL Key Contacts in our efforts to OPPOSE the so-called “Homeowner Bill of Rights.”

This bill was approved this morning in a Conference Committee and could be voted on by BOTH houses of the Legislature as soon as Monday, July 2nd. Please get back to me ASAP with any feedback you get from your legislators. For your convenience, I’ve included links to our Key Contact rosters with phone numbers:

Assembly Key Contact Roster: http://www.car.org/media/pdf/202513/2012KeyContactAssemblyUpdate04-05-2012.pdf

Senate Key Contact Roster: http://www.car.org/media/pdf/202513/2012KeyContactSenateUpdate04-04-2012.pdf

Please note, here are the votes of the conference committee members:

Yes: Evans, Eng, Ron Calderon, and Feuer.
No: Blakeslee and Wagoner.

C.A.R. Opposing Conference Report that STALLS Housing Recovery

Call Your Legislators TODAY!

C.A.R. is OPPOSING a conference report, AB 278, containing anti-foreclosure legislation sponsored by the state Attorney General. C.A.R. opposes provisions in this measure which will allow anyone to stop the foreclosure process by filing a lawsuit, merited or not, C.A.R. agrees that careful and balanced reforms to the foreclosure process are necessary. However, C.A.R. opposes this conference report because it will further delay the housing recovery by inviting bad-faith lawsuits and defaults, and making it difficult for even well qualified borrowers to obtain financing. Financing is already very difficult to get. This conference report will only make a difficult situation worse.

Initially the Attorney General had sponsored a package of bills; the so-called the “Homeowners Bill of Rights.” For procedural reasons, the majority of these bills have been under consideration by a Conference Committee made up of six legislators. REALTORS® had the opportunity to educate these legislators about C.A.R.’s concerns as part of Legislative Day and since then C.A.R. lobbyists have been working directly with the conferees and legislative staff to make them aware of the unintended consequences of some of these proposals. The Conference Committee has now issued its final report and it must be passed by both Houses of the legislature. These votes may occur as early as Monday, July 2nd.

Action Items

Please contact your local legislators – both Republican and Democrat.

Please ask them to vote NO on the conference report (remember that it CANNOT be amended).

Background

The Attorney General has sponsored a package of bills to place into California law an expanded version of the national settlement between major banks and state attorneys general. The contents of some of these bills have been under consideration by a Conference Committee comprised of six members who have just approved a conference report on a party-line vote. Some provisions will have the unintended effect of drying up mortgage loans for anyone but the most well-qualified borrowers, and increasing the costs of all mortgages.

One provision allows any borrower, no matter what the circumstances, to file a lawsuit. This will encourage opportunistic lawyers to pursue frivolous lawsuits, bringing unnecessary and unjustifiable delays to an already difficult and time consuming process.The language is so vaguely written that the borrower doesn’t even have to show that they have been harmed to file suit and be awarded damages., One-sided  attorneys fees may still be awarded only to plaintiffs based on the very broad definition of a “prevailing party” in the report. And, of course, if lenders don’t have the remedy of foreclosure to ensure they can recover their security in appropriate situations, they will be less likely to lend, credit will be less available and the housing market recovery will limp along even more slowly.

C.A.R. is OPPOSED to the conference report because:

• The housing market recovery is still fragile. About half of all sales are of distressed properties. By restricting a lender’s ability to foreclose and exposing them to unnecessary liability, this report will dry up inventory, and it will further discourage lending other than to the most highly qualified borrowers. Additionally, these bills will artificially slow down the foreclosure process, keeping properties off the market that are legitimately in foreclosure. Finally, by removing the threat of foreclosure, the bill erodes the incentive for short sales as well.
• The bill invites bad-faith defaults and lawsuits. By broadly defining under what circumstances a lawsuit can be filed, even those legitimately in foreclosure can “game” the system. Additionally, the bill creates an incentive for plaintiffs’ attorneys to file frivolous lawsuits even if no harm has been done to the borrower. The courts are already overwhelmed. This bill, by inviting frivolous lawsuits puts an additional strain on the already underfunded courts
• Lending is already tight. Even the most well-qualified borrowers are finding it difficult to obtain financing. By stopping legitimate foreclosures, banks will be forced to further tighten lending standards at the expense of homebuyers.

I hope that you’ll take a moment to fight for our California real estate market and its health.  Feel free to comment below or tweet @angieweeks on how your calls to the legislators go.  Thanks for your time and support!

1. Home prices have dropped SIGNIFICANTLY in the last 5 years, the median home in Orange County is now an affordable $435K!
2. Loan rates are the lowest they’ve been in 20+ years.  A picture is worth 1000 words:

Reproduced with the permission of Mortgage-X.com

If there were ever a time to buy Orange County property, its now.  Renters are renting properties that they could be buying for the same price or LESS.  Down payments are affordable, and banks are even allowing ‘gift money’ if you haven’t been able to save your down payment.

Call us NOW 877-230-3211 before this window of opportunity closes.  The presidential election is coming up, and that can frequently cause uncertainty in the economy, which can drive up interest rates.  Questions?? tweet @angieweeks or call one of our preferred lenders for info!

Orange County HARP and other underwater refinance options may be able to keep your home afloat

Are you under water on your home?   Check out this great article from Derek Beisner, one of  our Orange County preferred lenders, about negative equity refinance options!

HARP 2.0 May be an Option You & Your Family Can Benefit from

These days, the word harp stands for more than just a beautiful musical instrument. In the home loan arena HARP 2.0 stands for the Home Affordable Refinance Program. But what is HARP 2.0 exactly and -most important of all-can you benefit? Read on for details.

HARP 2.0 is an enhanced refinance program that allows Orange County homeowners with qualifying mortgages to be able to take advantage of today’s historic low interest rates, even if their home has decreased in value or is worth less than their mortgage balance. The program was first enacted in May 2009, but was enhanced recently to give more homeowners the opportunity to refinance.

Who Qualifies for HARP?

To qualify for this program, your current mortgage loan must be owned by Fannie Mae or Freddie Mac and Fannie Mae or Freddie Mac must have taken delivery of the loan on or before May 31, 2009. Fannie Mae’s program is called RefiPlus and Freddie Mac’s is called RefiRelief.

You may be making payments to your lender or servicer without realizing that Fannie Mae or Freddie Mac actually own the loan. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

http://www.freddiemac.com/mymortgage
http://www.fanniemae.com/loanlookup

What Features Does the HARP Program Offer?

One of the exciting features of HARP 2.0 is that there is no longer a limit to how much equity is needed to refinance. What’s more, there are no underwater refinance limits! Previously, borrowers whose loan-to-value limits were greater than 125 percent were ineligible to refinance. Now, borrowers can refinance no matter how far their homes have fallen in value

In addition, many of the fees associated with the original program have been reduced or eliminated. Also, a full appraisal may not be required-which can save time, money, and perhaps some anxiety.

HARP 2.0 allows for refinancing to a lower interest rate and payment, shortening the term of the loan, moving from an adjustable rate mortgage to a fixed rate mortgage-or some combination thereof.

Occupancy may have changed since the original loan was written, and in some cases the property can even be listed for sale.

Will HARP Cover All My Mortgages?

HARP 2.0 only applies to first mortgages, so if there is a second mortgage or home equity loan in place, it will need to remain in place. Most second lien lenders have been very accommodating in allowing for HARP refinances to occur. If the current loan has private mortgage insurance (PMI) on it, most PMI companies are very flexible and accommodating with transferring coverage from the current loan to the new loan.

For more information please contact Derek Beisner at 949-637-9939, or call The Weeks Team at 877-230-3211

California Home Buyer Recovery

2005-2009 California economic development stagnates.

2007-2009 The Great Recession

2009-2010 The Federal Reserve takes direct control of long-term interest rates – all new mortgages are Fed funded by bonds.

2009-2016 The Lesser Depression, characterized by persistent slow job growth and low demand from home buyers, while dominated by speculators.

2010-2015 Home sales remains on a “bumpy plateau” recovery approximating their 2010 numbers. The state’s homeownership rate drops below 55% (state’s historic point of stability) to near 50%. Collectively, short sales, foreclosures sales and REO resales remain high.

2012-2013 The most likely bottom for home sales volume to users, followed by an extremely gradual sales volume recovery for lack of user demand. Apartment construction begins to rise noticeably in response to tenant demand.

2014-2015 Prior low pricing and low interest rates spark a bounce in home sales volume. This bounce is short-lived, as the Federal Reserve raises rates to control the pace of recovery and prevent momentum buying. Property prices keep pace with the rate of consumer inflation. Speculators holding SFRs acquired two or three years earlier begin to dump them

2014-2016 Home sales stabilize. Shortsales, foreclosures, bankruptcies and REOs remain high. 300,000-400,000 new jobs are created annually for a return to the December 2009 peak level. Generation Y begins to come of age and buy homes.

2016-2017 Full recovery mode for employment, home sales, then pricing. SFR construction rises, though no where near Boom-time heights.

2017-2018 Interest rates rise again.

2018-2020 Excess inventory of vacant homes finally returns to pre-recession levels. Generation Y begins to pick up homebuying activity en masse. Homeownership in California is at 50%.

2020-2025 Negative equity homeowners who refused to strategically default finally work their way out of debt and return to a stable financial status, the poorer for it.

2025+ Home prices return to peak levels of 2006. The lessons of the Great Recession forgotten, and home sales hedonism returns. The mistakes of the past are repeated and the cycle continues.

We agree that we are probably at the bottom right now, as we’re already seeing an uptick in California homebuyer interest, and a decrease in inventory.  We disagree that interest rates will stay low until 2017…..although wouldn’t that be nice???!  We also agree (unfortunately) that the lessons of the past will be forgotton by 2025, and the market will again cycle.  It always does!

What do you think?  Please comment below or tweet us @angieweeks or @weeksteam.  Should you be interested in buying ‘at the supposed bottom’, please call us at 877-230-3211, and we’re happy to show you homes over this Memorial weekend!

Does homeownership matter?

According to 13,000 Realtors, their clients, and nationwide political figures it sure does!  On Thursday May 17th there was a sea of blue at the Washington Monument to support the most basic American Dream, owning your own home.

“Our home is where we grow our families, build our memories, secure our equity…the investment in real estate is worth a lifetime.” – Georgia Senator Johnny Isakson

Protecting Orange County Real Estate

Currently politicians are in discussions and debate about our Mortgage Interest Deduction (MID), and the taxation (or lack thereof) on gains from sales of primary and secondary residences.  These tax benefits are crucial to the SHORT TERM value of owning a home over renting, and I was there rallying to protect this for our past, present, and future clients.

“Families who own homes have less crime, less divorce, better finances, and more.  Every day of your life when you put people in a home YOU STRENGTHEN AMERICA.  2 jobs are created for every home sold” – Moe Vessi NAR President

Of course, the long term value of owning a home will always remain – you get a roof over you head for free after your mortgage has been paid off – talk about a sense of security and financial freedom   The other long term benefit is equity, and it was restated at the rally:

A HOMEOWNER’s NET WORTH is 46X THAT OF A RENTERS

Now is an excellent window of opportunity for renters to buy a home, as interest rates are the lowest they have been in years, and the prices of homes in Orange County are also lower than they were 5 years ago.  Many first time buyers are getting into the market right now, and we are seeing properties properly priced in the under 400K range sell within days, with multiple offers.  Eventually, this will drive prices back up, but it has not yet.

The Weeks Team is here to be your homeownership advocate.  If you have any questions or concerns about your neighborhood, home prices, political real estate bills, upgrades, etc, don’t hesitate to contact us!

We also looooove to educate renters on how to buy their first home – so when you tell your friends how important homeownership is to YOU, don’t forget to give them our card or 877-230-3211 number, so we can help them enjoy the benefits as well!

Reasons People in Orange County Short Sale

1. Job loss
2. Income reductions
3. Divorce
4. Job relocation
5. Medical / health expenses

If you know someone struggling to keep their mortgage payments current, who is experiencing any of the above, please put them in touch with The Weeks Team 877-230-3211 for a no obligation consultation.

If you’re already in the short sale process, here are some tips to help you:

• REMEMBER: SHORT SALES ARE TOO DIFFICULT WITHOUT EXPERT HELP!
• Talk to your tax advisor, Realtor, and ensure you have a short sale negotiator
• Check with your Realtor to see if you qualify for HAFA
• Honestly & completely fill out / provide all paperwork
• Keep your home in the best shape possible and make it easy to show

Short sale incentives

There are MANY incentives available right now to homeowners who are interested in short selling.  Here are just a few:

1. Tax forgiveness for Short Sales closed through December 2012
2. HAFA $3000 relocation assistance
3. Easier & quicker to purchase after short sale than foreclosure

Obviously, the best thing is to keep your home, and wait for appreciation to swing back up so you have equity.  Unfortunately, many do not have the time to wait for equity   Doing a short sale is the next best option if selling is a must.  Don’t forget to call The Weeks Team  877-230-3211 or email angie@askangie.com for a pre-foreclosure consultation – every scenario is different and we will help you work out the best solution for your situation!

What happens generally is when mortgage insurance is introduced the buyer will lose a lot of their ability to qualify because the “added,” monthly payment robs your opportunity to have purchased the “extra home.”

At 5% down payment, 700 FICO credit score, single family home the rates are below for mortgage insurance options.

The monthly insurance quote returned 4 other options also to compare, along with the priciest, FHA financing. We’ll discuss the other options soon.

FHA is a great option to achieve home ownership, although for most, the standard conventional financing with mortgage insurance option will be better. For in depth information about the in’s and out’s of FHA financing contact me, Click Here or contact me below.

The above estimate shows monthly mortgage insurance to be $260 a month which represents approximately $45,000 in terms of sales price that a buyer can qualify for. A buyer who elects for the monthly MI route will have to lower their qualification letter by $45,000 which could mean less bedrooms, bathrooms, or a completely different neighborhood!

Using a well structured offer, great advice, hard work, and dedication from your real estate professional you’ll be able to instead qualify for up to $45,000 more in home while keeping your monthly budget the same. For a referral of a real estate professional who is well versed in these strategies contact me, Click Here or contact me below.

One of the best options is the use of Single Premium Mortgage (option #2 above in chart) insurance which is quoted above at $9600. Instead of paying monthly mortgage insurance companies allow a premium that is front loaded or up front at the time of the transaction. This can be very expensive because $9600 is a large up front cash out lay to pay in order to get rid of the $260 monthly payment. A quick analysis suggests that $9600 single premium divided by $260 monthly premium would break even in about 37 months or 3 years. So if you’re going to live in the home for 3 years or longer then you’ll be better off going with the single premium if the funds can be acquired at the time of purchase. The money per month that would have been used to pay MI monthly would then be used to purchase more home, up to $45,000 more in sales price.

The main problem I encounter is just that, finding the cash needed.

Solution #1 is structuring the offer to include a concession from the seller for the amount of money needed to cover the single premium. This would allow a buyer to put 5% down, eliminate the monthly MI, obtain about $45,000 more in home and still keep the budget where it would have been if they had monthly MI.

Solution #2 is structuring the financing to side with an increased rate to pay for the $9600 single premium. By increasing the rate a credit or rebate is generated and its this “money,” that is used to pay for the single premium which is sent to a third party mortgage insurance company who insures the loan up to a specified amount of loss. The downside with this strategy is that yes, you’ll get rid of the $260 dollar a month payment, but the higher rate causes the payment to go up and offsets your full potential gain of $260 so as a result instead of qualifying for an additional $45,000 you may only get a fraction of this, 25,000-30,000 more home as an example.

There are many more ways to help you efficiently structure the financing to accomplish a great home buying experience.

Contact me HERE (or look below) and I’d be happy to provide a free consultation.

Albert Bui

Mortgage Planning Specialist

New American Funding – NMLS#345453

Direct – 949-514-5106

Email – Albert@Albertbui.com

Here are highlights of this incredible offering:

• The collection consists of 133 pieces formerly owned by the woman’s father, artist and Laguna Beach resident Fredrick Milton Rash.  His Laguna Beach art gallery was a popular meeting ground for many members of the creative community.
• These stunning artworks encompass everything from portraits to landscapes, oil and water color. The collection features several first-prize winners, as well as artworks that Mr. Rash created for Howard Hughes. This includes renderings of the Spruce Goose, a portrait of Maurice Chevalier, and many other notable projects.
• For many years, Mr. Rash also provided striking artistic renderings for the covers of Orange County Executive Magazine, as well as the memorable stadium programs of the L.A.Rams football team.
• Various pieces from the collection, as well as stories about Mr. Rash, have been featured in prominent magazines. An Arizona curator once had wanted to display the collection in that state’s art museum.
• Prior to settling in Laguna Beach, Mr. Rash traveled extensively to work with various art groups and teach classes.

If you’re an art lover intrigued by this unusual offering and are interested in considering this stunning collection in exchange for your Laguna Beach home, please contact us here at the WeeksTeam. We’ll ready to set the wheels in motion for this unique opportunity.

You can connect with me at 949.338.7408,  @AngieWeeks, @WeeksTeam, or  angie@askangie.com.  I’m ready to assist you in any way I can.

We’re seeing a little ‘spring’ in Mission Viejo residents’ steps when it comes to selling a home!  This is great news for the Orange County real estate market, and we thought it would be a good time to give homeowners a few tips on how to sell a home with ease.

Selling a Home – Tips For Survival

1. Market on the Internet.  According to NAR, 89% of homebuyers start online with a home search.  Your home MUST be on Zillow, Trulia, Realtor.com, Redfin and other national homesearch websites.  In addition, your property should have its ‘own’ .com, at least 10 GOOD photos, and a virtual tour.  Remember, the internet never sleeps, and it’s your best referral partner if you let it be
2. Make your home easy to show.  Do NOT, I repeat.. DO NOT, make it difficult to show your property.  24 and 48 hour advance appointments significantly decrease the amount of buyers who will walk through your property, and that will affect your bottom line!  Yes, its a pain to have people walking through your home, but keep your eye on the end goal.  You want to sell for the highest return, right?  A ‘call first – go direct’ status in the Multiple Listing Service will allow you to get the ‘heads up’ you’re getting a visitor soon, but also allow agents and buyers to quickly and easily access your property. 
3. Don’t be discouraged by under-asking offers.  Its a buyer’s market right now.  Buyers want a good deal.  If your property is priced higher than the last property that sold in your neighborhood, expect an offer to come in at the price of the most recent sale, or even below.  This isn’t a reason to get offended, its an opportunity to bring a deal together!!  If you did your homework and selected a good Realtor who knows the neighborhood and how to negotiate, you’re on your way to opening escrow.  Losing your patience or being closed minded will only cost you in the end.  Work WITH your agent and your buyer to get the property under contract, and life will be so much less stressful ;) 

If you remember these tips when you go to sell your home in Mission Viejo or anywhere here in OC, you’ll have a much better experience.  The Weeks Team is well versed in Short Sales and Equity sales, call 877-230-3211 today to set an appointment for your market analysis.  (And NO, Zillow doesn’t have all the right answers.  Don’t gamble with the biggest investment you have!  Its a great reference site but nothing compared to a professional Realtor who has served the city of Mission Viejo for years)

Orange County Association of Realtors had a PACKED house today to listen to Sean O’Toole, founder of Foreclosure Radar (www.ForeclosureRadar.com) speak on the state of the OC foreclosure market.

Currently there are over 2 million homeowners in CA who are under water, and there appears to be about 41 months left of foreclosure inventory that needs to be liquidated.  Lots of buyer and investor opportunity there!!!

Are Orange County Foreclosures Going Up, or Down?

As of Sept 2008 and the announcement of the HARP program, the foreclosure activity is SIGNIFICANTLY DOWN, and continues to decline.  This is great news for the homeowners struggling to modify or refi underwater loans.  The banks are really starting to work with borrowers to create a solution other than foreclosure, but of course there are still plenty of properties that still need to go that route.

Are you interested in finding foreclosure stats for your city?

Here’s a great link of Orange County foreclosure zip codes and foreclosure activity.

06059 – Foreclosure Filings

Where are OC foreclosures headed now?

Well, the government does continue to help us ‘extend and pretend’ as Sean says.  He’s projecting at least 4 more years of foreclosures, BUT, there will be NO WAVE of foreclosures the way many murmur about.  The banks are just not solvent enough to flood the market with foreclosure listings like everyone wants or expects them to.  The REO market continues to slow, and Foreclosure Radar experts expect it to continue to decline.  They are expecting loan mods and short sales to increase.

What does foreclosure spiral look like from an emotional standpoint?

Denial
Anger
Depression
Bargaining
Acceptance

The entire process is completely draining to the homeowner, and Sean actually put it in a new light as a ‘blessing’ to some.  It’s better than having a huge burdensome payment for the rest of your life… or even worse.. having your children be forced to take on your bad debt like other countries.  When you look at it like that, he’s right.  BUT, we still think its much better to short sale or modify, which is why we created our Ten Dimensions team to help homeowners who are fighting foreclosure.

Why don’t people talk to their Realtor when they’re in the foreclosure process? 

Many feel shame, and Sean said its so hard for him to hear people reach out to HIM, but not to their real estate agent.  Believe me, your agent probably had to fight foreclosure before you did.  TALK TO THEM, the sooner you ask about options the more you have!!!!!  If you need someone to trust, you can trust The Weeks Team and the Ten Dimensions Team.

Call 877-230-3211 or email angie@askangie.com to schedule a foreclosure consultation appointment. 

New Horizon’s 55+ Community

Residents of New Horizons are friendly and upbeat seniors – just take a stroll around the grounds and see lots of smiling faces and inviting landscapes!  Neighbors take such pride in their homes – carefully upgrading the landscaping and patios outside of their condos with cheerful flowers and plants.

If you didn’t see enough green on the grounds, you’ll surely find plenty on the 3 par golf course ajoining the neighborhood.  Residents can relax by golfing right there in the community.  The course is challenging but fun, and the best part is its barely ever crowded.

Homeowners in New Horizon’s also get to enjoy a lovely clubhouse with lots of amenities.  Join the other residents for a game of cards, checkers, or a dip in the pool.  There is also a ballroom and billiard room – plenty of activities to keep busy!

If you’re interested in the lifestyle New Horizon’s adult 55+ community offers, or our listing at 22919 Nadine Circle B – just give us a call – 877-230-3211.  We’d be happy to take you on a tour of all the active listings and amenities!

We’re helping lots and LOTS of first time home buyers in Orange County lately, and naturally they have questions about the buying process and how it works from start to finish!  Of course, each of these points could be a post in its own, but here’s 10 easy steps and your order of operations:

How to buy a home in California

1. Select your Realtor and get prequalified with a lender to find out how much home you can purchase
2. Locate your new home and write an offer
3. Negotiate, and get your offer accepted
4. Open escrow & pay your Good Faith Deposit
5. Handle your ‘due diligence’ inspections (home inspection, termite inspection, geo inspection, mold or radon inspection, appraisal)
6. Remove contingencies
7. Sign closing and loan paperwork
8. Wire remainder of down payment & closing costs to escrow
9. Ensure title is recorded in your name
10. Collect the keys to your new home

If you are relocating to Orange County, remember, NOT ALL STATES handle real estate transactions the same way.  Many use attorneys instead of escrow, and have varying purchase agreements.  This is why you always need a quality Realtor on your side who understands the process.  Although the steps above may seem simple, there are land mines in every part of the process to avoid so your deal does not blow up!!

The Weeks Team is always available at 877-230-3211 to answer your questions.  If you prefer the social route, ask us on Facebook, tweet @AngieWeeks or @WeeksTeam, or circle Angie on Google+.