How not to be a victim of foreclosure fraud

by Jay Hammond on March 31, 2009

As the number of struggling homeowners facing foreclosure continues to rise, so do the number of unscrupulous individuals and firms will to prey on them.

“A mortgage lender or a financial counselor can assist you in finding real options to avoid foreclosure,” said Sissy Osteen, an Oklahoma State University Cooperative Extension resource management specialist. “If someone is offering to consult with your lender and offers to arrange to stop or delay foreclosure for a fee be sure to check his or her credentials, reputation and experience. It’s important to protect yourself and not be a victim of a foreclosure scam.”

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First-Time Home Buyer? Choose When to Claim Your Tax Credit | RISMedia

RISMEDIA, April 4, 2009-With the deadline for filing federal tax returns fast approaching, the National Association of Home Builders (NAHB) has made information available for qualified home buyers about how and when to claim the $8,000 first-time home buyer tax credit.

The basic eligibility requirements for the credit are: the home must have been purchased on or after Jan. 1 and before Dec. 1, 2009; the buyer may not have owned a home in the three years prior to the purchase; and the buyer must have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers or $170,000 for married filers.

Two factors affect the amount of credit qualified buyers can claim: it can only be equal to 10% of the purchase price of the home, up to a maximum of $8,000; and it is reduced for buyers with a MAGI between $75,000 for single taxpayers ($150,000 for married filers) and the upper income limit.

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Featured Homes Near Monta Vista High 040409

Terra Bella, $1,528,000, 4 Bedrooms, 2.5 Bathrooms, 2255 SqFt
Castine Ave., $1,318,888, 5 Bedrooms, 2.5 Bathrooms, 2440 SqFt
Linda Vista, $1,259,000, 3 Bedrooms, 2 Bathrooms, 1678 SqFt
Country Spring, $1,249,000, 3 Bedrooms, 2.5 Bathrooms, 1956 SqFt
Lockwood Dr., $1,125,000, 3 Bedrooms, 2 Bathrooms, 1910 SqFt
Almaden Ave., $789,000, 2 Bedrooms, 1 Bathroom, 934 SqFt

6 Reasons Why It's Still a Good Time to Buy

The housing market is looking healthier. Here are six reasons why now is the time to jump into the market.

1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available. (Sign up for a Webinar to learn more about the home buyer tax credit)

2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.

Source: The Wall Street Journal, June Fletcher (03/27/2009)

Featured REO Properties 040409

Heron Ct., $384,900, 4 Bedrooms, 4 Bathrooms, 1615 SqFt
Avalani Ave., $379,000, 3 Bedrooms, 2.5 Bathrooms, 1532 SqFt
Catamaran, $373,915, 4 Bedrooms, 3 Bathrooms, 1637 SqFt
Manton Dr., $372,500, 4 Bedrooms, 3 Bathrooms, 1664 SqFt
Carick Pl., $364,900, 4 Bedrooms, 2 Bathrooms, 1478 SqFt
Freya Dr., $342,500, 3 Bedrooms, 2.5 Bathrooms, 1431 SqFt
Canton Dr., $335,000, 4 Bedrooms, 2 Bathrooms, 1522 SqFt
E. Misson, $329,900, 3 Bedrooms, 2 Bathrooms, 1178 SqFt
Kinross Way, $329,000, 4 Bedrooms, 2 Bathrooms, 1417 SqFt
Vaughn Ave., $327,000, 4 Bedrooms, 2 Bathrooms, 1166 SqFt

Is California real estate coming back?

No state has been harder hit by the housing bust than California.

It has piled up more foreclosures and has endured among the worst home-price declines. The median price of a single-family home sold in February was $247,590, down 41% from 12 months earlier, according to the California Association of Realtors (CAR).

And home construction in the Golden State has nearly vanished: December housing permits shrank to about a quarter of what they were during the boom years, according to the National Association of Homebuilders.

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Buying Foreclosed Homes: Be Careful

If you're looking for a great deal on a house, one option might be to purchase a home that's in foreclosure.

But Early Show financial contributor Vera Gibbons says the process isn't for everyone: It's complicated and fraught with potential stumbling blocks.

There's certainly no shortage of properties in or approaching foreclosure to pick from.

Some three million foreclosures are expected this year alone, according to the Web site RealtyTrac.com>, three-to-four times the usual number.

Prices usually range from 20 to 80 percent below market value, depending on where the house is located.

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Specific Home Inspections

Question: What Types of Home Inspections Can a Buyer Do?

A reader asks, "My husband and I had our offer accepted last night on a house in a really cool neighborhood. The house is a little old, so we're concerned that it might not pass a home inspection. Our agent says a home inspector might refer us to other inspectors. What other inspectors? What types of home inspections can a buyer do?"

Answer: Your real estate agent should be able to give you a list of the types of home inspections that are generally conducted in your area. She is correct in saying that your home inspector might suggest that you hire other inspectors.

Does a Home Inspector Check Everything in a House?

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Featured Homes Near Lynrbook High 040309

Oak Knoll, $1,748,000, 5 Bedrooms, 4 Bathrooms, 4634 SqFt
Vicanna Dr., $1,099,950, 5 Bedrooms, 2 Bathrooms, 1800, SqFt
Alderbrook, $899,888, 3 Bedrooms, 2 Bathrooms, 1300 SqFt
Danromas Way, $899,888, 4 Bedrooms, 2 Bathrooms, 1790 SqFt
Corvette Dr., $899,000, 3 Bedrooms, 2 Bathrooms, 1133 SqFt

Featured REO Properties 040309

Stroud Pl., $299,900, 4 Bedrooms, 3 Bathrooms, 1688 SqFt
N Jackson, $285,000, 3 Bedrooms, 2 Bathrooms, 1200 SqFt
Alveswood, $285,000, 2 Bedrooms, 2 Bathrooms, 1178 SqFt
San Simeon, $280,000, 5 Bedrooms, 3 Bathrooms, 1965 SqFt
Griffith St., $275,900, 4 Bedrooms, 2 Bathrooms, 1154 SqFt
Shortridge, $274,900, 4 Bedrooms, 2 Bathrooms, 1528 SqFt
Lochner Dr., $269,900, 4 Bedrooms, 2 Bathrooms, 1154 SqFt
Diana Pl., $261,900, 4 Bedrooms, 2 Bathrooms, 1280 SqFt
Lochner Dr., $232,702, 3 Bedrooms, 2 Bathrooms, 1000 SqFt
Hurlingham, $224,900, 3 Bedrooms, 2 Bathrooms, 1188 SqFt

5 Recommendations for Navigating Today’s Mortgage and Housing Markets

”There are five distinct strategies that can help home owners, buyers, and sellers successfully navigate today’s turbulent mortgage and housing markets,” said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.

1. Understand and Utilize the New Tax Credits. Many home owners are not aware that the latest government stimulus package gives them a special tax credit of up to $1,500 for making certain home improvements. Also, if you are buying a primary home and you have not owned a primary residence in the last 3 years, you may qualify for the new $8,000 first-time-homebuyer tax credit. “Although you can’t use the credit to help with your down payment, the credit can be claimed on your 2008 tax returns if you buy the home in 2009,” Nicholas said. “This means that even if you buy the home after you file your taxes on April 15, you can simply file an amended 2008 tax return and the IRS will send you a refund check for $8,000.”

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Mortgage Rates 'as Low as 2 percent'

Some of the 3 to 4 million homeowners eligible for loan modifications could see interest rates as low as 2 percent under the Obama administration's new "Making Home Affordable" (MHA) initiative.

Originally dubbed the "Homeowner Affordability and Stability Plan," MHA contains a provision to modify mortgages for qualified homeowners struggling to make the monthly payment.

A loan modification, unlike a refinance, changes the terms of the existing loan without writing a new one. Modifications are designed to make mortgages more affordable.

Also called a "workout," this provision is open to anyone including those who haven't missed payments, but may be at risk of missing payments.

The modification plan is open to anyone with any loan that has a balance under Fannie Mae and Freddie Mac limits, which now as high as $729,750 in some high-cost areas.

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Buyer Feedback

The most important question a home seller can ask a buyer who has just finished viewing a home is "What did you think?" Yet, many sellers (and their agents) hesitate to get buyer feedback after showings. Why? Some people don't know which questions to ask, and others, most likely, are afraid to hear the answers.

Buyer feedback is essential. Without it, home sellers won't know what they are doing right and what could be improved upon. Because after all, it doesn't really matter what the seller thinks. It's the buyer's opinion that matters.

Here are sample questions that you can use to get buyer feedback:

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Pending home sales rise 2.1 percent in February from January

An index that tracks signed contracts to purchase previously occupied homes rose in February from a record low a month earlier as buyers took advantage of deeply discounted prices and low interest rates.

The National Association of Realtors said today said its seasonally adjusted index of pending sales for previously occupied homes rose 2.1 percent — in line with expectations — to 82.1 in February from January's record low of 80.4.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future home sales.

Because of falling home prices and mortgage rates, homeownership is more affordable than it's been since at least 1970, the trade group said.

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Bidding Wars Over a House? Real Estate Pros See Bottom

One hour outside of Washington DC, in the picturesque small city of Martinsburg, West Virginia, some homes for sale are attracting bidding wars—again.

“Prices are so low, we’re starting to see that," says Marc Savitt, a realtor there for a quarter of a century. “In our area, you’re at the bottom.”

Allan Ferguson California Suburbs

Savitt, who’s also president of the National Association Of Mortgage Brokers, might be accused of being overly optimistic. But he is hardly alone in sensing a long-awaited bottom in the real estate market.

• Slideshow: Highest-End Real Estate
• Slideshow: Most Affordable Metro Areas

For most at this point, it’s less a matter of bold confidence that cautious optimism, but data are emerging to make a reasonable case.

Three categories of home sales—new, existing and pending – all posted surprise gains in February, along with housing starts are posted surprise gains in February.

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Featured REO Properties 040109

Panama Ave., $179,900, 3 Bedrooms, 2 Bathrooms, 1040 SqFt
Column Ct., $174,900, 3 Bedrooms, 2 Bathrooms, 1197 SqFt
Don Basillo, $169,900, 2 Bedrooms, 1.5 Bathrooms, 950 SqFt
Buckeye Dr., $164,900, 4 Bedrooms, 2.5 Bathrooms, 1461 SqFt
Balance Dr., $159,900, 3 Bedrooms, 1.5 Bathrooms, 1197 SqFt
N Capitol Ave., $147,500, 2 Bedrooms, 2 Bathrooms, 955 SqFt
Judith St., $135,000, 2 Bedrooms, 1 Bathroom, 810 SqFt
Playa Del Rey, $134,900, 2 Bedrooms, 1 Bathroom, 798 SqFt
Moffo Ct., $129,900, 2 Bedrooms, 2.5 Bathrooms, 988 SqFt
Mcquesten Dr., $119,900, 2 Bedrooms, 1 Bathrooms, 876 SqFt

Buying a Home With Bad Credit

Put your fears aside. Just because you have bad credit, filed bankruptcy or gone through a foreclosure does not mean you cannot buy a home. You most certainly can buy a home with bad credit. But you're going to pay more than a borrower who has sparkling credit.

The Waiting Period After Foreclosure / Bankruptcy

• The period between bankruptcy filings is seven years, but the ding to your credit report stays for 10 years.
• For better rates with a conforming loan, the wait is four years after filing bankruptcy.
• FHA guidelines are two years after a foreclosure, which means you could qualify for as little as 3.5% down.
• Hard-money lenders will often make loans six months after filing bankruptcy or a foreclosure, but will a require 20 to 35% down payment. The interest rate will be very high and the loan terms are not as favorable; many will contain prepayment penalties and be adjustable.
• Subprime lenders (not to be confused with hard-money lenders) are no longer making 100% financed loans.

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30-Year Mortgage Rates Remain Low for Second Week

The weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year mortgages remained relatively steady for the second consecutive week at 5.09%, up slightly from 5.06% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by real estate website Zillow.com. Meanwhile, rates for 15-year fixed mortgages increased to 4.80%, up from 4.73% and 5-1 adjustable rate mortgages dropped, down to 4.66% from 4.69% the week prior.

Mortgage Type Average Rate Average Rate % Change
Week ending 3/29/09 Week ending 3/22/09

30-year fixed 5.09% 5.06% 0.6%
15-year fixed 4.80% 4.73% 1.5%
5-1 ARM 4.66% 4.69% -0.6%

Rates for 30-year fixed purchase mortgages had decreased slightly, with the average rate on Zillow Mortgage Marketplace at 4.99%.

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