Posts Tagged ‘mortgage rates’

3rd Annual Home Buyer’s Fair

March 4, 2010

It is that time of year again:

LOS ANGELES  – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the Los Angeles Times are sponsoring the third annual Southern California Home Buyer’s Fair at the Los Angeles Convention Center March 13 and 14.

Time: Sat. 10-5 pm, sun. 11-4 pm. Concourse Hall, 1201 S. Figueroa St, LA, 90015

For more info visit: homebuyersfair.com

It’s free, but pay to park.

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Tax Credit Extended

October 29, 2009

Lola and meYeah

a REMAX logo Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers. The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit. Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev. The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers. House leaders have said they support extending the tax credit for homebuyers. Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate. Lawmakers didn’t release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion. Industry representatives said uncertainty about the tax credit is hurting new home sales. September’s decline was the first since March. It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors. “Buyers right now have an incentive to hold off, not knowing whether the credit will be extended,” Salvant said. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Real Estate 101 Glossary

October 21, 2009

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Give me an “E”

EARNEST MONEY DEPOSIT  A cash deposit made to a home seller to secure an offer to buy the property. This amount is often forfeited if the buyer decides to withdraw his offer, after contingencies are removed.

EASEMENT  The right of a non-owner of property to exert control over a portion or all of the property. For example, power companies often own an easement over residential properties for access to their power lines.

EAVE  The part of the roof that extends beyond the exterior wall.

ECONOMIC DEPRECIATION  The decline in property value caused by external forces, such as neighborhood blight or adverse development.

ECONOMIC LIFE The amount of time which any income-producing property is able to provide benefits to its owner.

EFFECTIVE AGE  The subjective, estimated age of a property based on its condition, rather than the actual time since it was built. Excessive wear and tear can cause a property’s effective age to be greater than its actual age.

 EMINENT DOMAIN The legal process whereby a government can take ownership of a piece of property in order to convert it to public use. Often, the property owner is paid fair-market value for the property.

ENCROACHMENT  A building or other improvement on one property which invades another property or restricts its usage.

ENCUMBRANCE  A claim against a property. Examples are mortgages, liens and easements.

 ENERGY EFFICIENCY RATIO  An efficiency rating system for air conditioning units that corresponds to the number of BTU’s output per watt of electricity used.

EQUAL CREDIT OPPORTUNITY ACT (ECOA)  U.S. federal law requiring that lenders afford people equal chance of getting credit without discrimination based on race, religion, age, sex etc.

EQUITY  The difference between the fair market value of a property and that amount an owner owes on any mortgages or loans secured by the property.

EQUITY BUILDUP  The natural increase in the amount of equity an owner has in a property, accumulated through market appreciation and debt repayment.

ERRORS AND OMISSIONS INSURANCE  (E & O) An insurance policy taken out by appraisers to cover their liability for any mistakes made during the appraisal process.  Other’s,  such as real estate agents, mortgage brokers, ect. pay for  E and O insurance

ESCROW  An amount retained by a third party in a trust to meet a future obligation. Often used in the payment of annual taxes or insurance for real property.  Also, the independent third party that exchanges the buyer’s money for the seller’s deed in the sale of real property.

ESCROW ACCOUNT  An account setup by a mortgage servicing company to hold funds with which to pay expenses such as homeowners insurance and property taxes. An extra amount is paid with regular principal and interest payments that go into the escrow account each month.

ESCROW ANALYSIS  An analysis performed by the lender usually once each year to see that the amount of money going into the escrow account each month is correct for the forecasted expenses.

ESCROW DISBURSEMENTS  The payout of funds from an escrow account to pay property expenses such as taxes and insurance.

ESTATE  The total of all property and assets owned by an individual.

EXAMINATION OF TITLE  The report on the title of a property from the public records or an abstract of the title.

EXCLUSIVE LISTING  An agreement between the owner of a property and a real estate broker giving the broker exclusive right to sell the property. 

EXECUTOR  The person named in a will to administer the estate.

Real Estate 101 Glossary

October 18, 2009

Lola and mea REMAX logoAre you ready for “D” Day?

 

DATE OF APPRAISAL The specific point in time as of which an appraiser designates the value of a home. Often stipulated as the date of inspection.

DEBT  An obligation to repay some amount owed. This may or may not be monetary.

 DEBT EQUITY RATIO The ratio of the amount a mortgagor still owes on a property to the amount of equity they have in the home. Equity is calculated at the fair-market value of the home, less any outstanding mortgage debt.

DEED  A document indicating the ownership of a property.

DEED-IN-LIEU (OF FORECLOSURE)  A document given by a borrower to a lender, transferring title of the property. Often used to avoid credit-damaging foreclosure procedures. DEED OF TRUST  A document which transfers title in a property to a trustee, whose obligations and powers are stipulated. Often used in mortgage transactions.

DEED OF RECONVEYANCE  A document which transfers ownership of a property from a Trustee back to a borrower who has fulfilled the obligations of a mortgage.

DEED OF RELEASE  A document which dismisses a lien or other claim on a property.

 DEED OF SURRENDER  A document used to surrender any claim a person has to a property.

 DEFAULT   The condition in which a borrower has failed to meet the obligations of a loan or mortgage.

DELINQUENCY  The state in which a borrow has failed to meet payment obligations on time.

DEPOSIT  Cash given along with an offer to purchase property, Also called EARNEST MONEY.

 DEPRECIATION  The natural decline in property value due to market forces or depletion of resources.

DETACHED SINGLE-FAMILY HOME  A single building improvement intended to serve as a home for one family.

DISCOUNT POINTS  Points paid in addition to the loan origination fee to get a lower interest rate. One point is equal to one percent of the loan amount.

DISTRESSED PROPERTY A mortgaged property which has been foreclosed on.

DOWN PAYMENT  An amount paid in cash for a property, with the intent to mortgage the remaining amount due.

DOWNSPOUT  The pipe that water moves through to reach the ground from the rain gutter.

DUE-ON-SALE PROVISION  A clause in a mortgage giving the lender the right to demand payment of the full balance when the borrower sells the property.

DUPLEX  A single-building improvement which is divided and provides two units which serve as homes to two families.

 DWELLING A house or other building which serves as a home.

Short Sale Update

May 21, 2009

The bank took so long to approve, now the buyer’s appraiser cannot appraise at the contract price.  There were two recent sales in the building that were below our contract price.

We have to re-write the contract and submit to the bank again for approval.

Back to the drawing board. Urrrrr

 

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Short sales again

March 21, 2009

clip-art-house2Just got word that the lender approved one of our short sales.  They were supposed to send a fax, but instead we received a letter by Fedex, 2 days later.  We submitted 4 offers on Jan. 26th, almost two months later we get a respone.  One offer backed out.  The bank  took the offer with twenty percent down, not with the higher price.  More of a chance to qualify for a loan.   We have 35 days to close the deal.    They also refused to pay the property tax, association fees and some other small fees, they expect the seller to pay.  She works sporatically and has two children.   I put together a two page response today.  I hope it does not take long.  We have a well qualified buyer, I would hate to loose him.  His sister owns a condo in the building.

California Real Estate afforability

March 12, 2009

Calif. median home price – January 09: $254,350(Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 09: Santa Barbara So. Coast $900,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 09: High Desert $127,750(Source: C.A.R.)
Calif. First-time Buyer Affordability Index – Fourth Quarter 08: 59 percent (Source: C.A.R.)
Mortgage rates – week ending 3/5/09 30-yr. fixed: 5.15% Fees/points: 0.7% 15-yr. fixed: 4.72% Fees/points: 0.7% 1-yr. adjustable: 4.86% Fees/points: 0.5% (Source: Freddie Mac)