Pocket listing in La Mesa-Short Sale

This beautiful La Mesa home was built in 2006 and features granite countertops, surround sound system, large lot 10,000 square feet and additional loft space. Short Sale subject to lender approval of price, terms and conditions. Contact agent John Williams with questions and showing details (619) 520-8719. Don't miss this one!

Specifications:

Bedroom/Bath: 3/2.5 + loft space

Built: 2006

Lot size: 10,000

Type: Spanish/Mediterranean style

Features: Granite countertops, shutters, surround sound. Located in quaint community of La Mesa. Close to freeway, shopping, dining, schools, parks and entertainment. Contact agent John Williams (619) 520-8719

Options for Struggling Homeowners

Options for Homeowners Struggling with the Housing Market

In today's climate, many homeowners are struggling with the decision to default due to loss of value, loss of income, and the inability to refinance to reduce mortgage payments. There are options available for homeowners not sure what the next step is in the homeownership puzzle.

1) HARP 2.0 Refinance-If your home is owned by Fannie Mae or Freddie Mac you may be eligbile for the program. It allows homeowners to refinance with no limit on the loan-to-value ratio. For example, qualifying borrowers based on credit, income and loan application may qualify even though the value of their home is far less than the amount they owe. This may assist the more than 9 million homeowners struggling with underwater mortgages. Click here for more information on HARP.

2) Strategic Default-According to the article in Reuters through Yahoo, homeowners who owe much more than their home is actually worth and are "underwater" on their mortgage loans are choosing to default on the loan after purchasing a new home and obtaining a new mortgage. Click here for the article. Many lenders became savy to this a few years back and do make the process slightly more difficult. Homeowners considering this option must usually qualify for both mortgage loans under the current income, credit and asset guidelines of the banks or have their current home rented for 6 mos. to reflect landlord status prior to qualifying for a new home loan.

3) HAFA Short Sale-A HAFA Short Sale allows homeowners who have lived in a property with an owner-occupied status within the past 12 months. The current mortgages must be less than $729,750 to qualify and no felonies within the past 10 years. The HAFA program was designed to assist struggling homeowners with the costs of relocation and moving expenses after the short sale closes. Sellers can receive up to $3,000 in relocation expenses with the program. Click here for more information about HAFA.

4) After the Sale-Continue to save, save, save! FHA allows lending 2 years after a Short Sale. Homeowners have already taken advantage of the FHA program which allows 3.5% down payment on conforming loan amounts. Working on increasing the FICO score through making your other creditor payments on time will assist in boosting the score.

5) Consult a professional-Real estate attorneys, bankruptcy attorney and tax advisors can be worth their weight in gold. Many have a free consutlation option. Referrals and online review boards are often a great resource to find the right person for you.

We offer free consultations and are happy to assist with questions regarding your home market value.

HARP 2.0 for Underwater Mortgages

Help for Homeowners

Homeowners will hopefully receive some much needed assistance from the new HARP 2.0 program set to roll out in March 2012. Some lenders are getting a jump start and accepting applications early to underwrite with conditional approval until the program becomes official. The Home Affordable Refinance Progam initially rolled out with a maximum 125% cap meaning that if you owed more than 125% of your value you were not eligible to participate. The new program states more flexibility with underwriting guidelines and the main benefit, no cap on the loan-to-value ratio. With everything the program states it can do, it should help the nearly 9 million homeowners that have not been able to refinance based on an appraised value less than their mortgage loan(s).

Some benefits of the new HARP 2.0 program include:

• No maximum loan-to-value ratio-no cap
• Owner-occupied, investment and 2nd homes
• Historically low interest rates
• Conversion from an ARM to a Fixed rate loan
• No minimum credit score required

Survey Request

Whenever I hear the word "survey" I think of Bob Barker on the Price is Right after each contestant answers a question, he would reply "Survey Says" and they would either here the friendly chime of their correct answer or the blast of the big red X as it popped on the television screen to represent an incorrect answer. Well fortunately there are no incorrect answers here. We are looking for your feedback, your thoughts and really to find out who our target demographic is. We would sincerely appreciate it if you assisted us by completing a short survey about who are target customer is and how we can better engage and wow you with our content.

SURVEY:CLICK HERE or connect with this website http://www.surveymonkey.com/s/2WWCDY7

Thank you for everyone that assists us in better serving you, our customers and loyal fans!

Does Working with an Agent Save Money?

Show me the money!

As in any industry, we have very loyal clients who return to us year-after-year to buy and sell their homes. They continue to refer business and give us glowing reviews. Some past clients unfortunately do no return. There are many reasons why, maybe a family member became a real estate agent or maybe the grass looked greener with another agent? Whatever the case may be, we strive to stay both in front of our clients and ahead of the game by providing a wealth of knowledge to our clients. This can include statistics of past sales in a neighborhood, interest rates, and negotiating the price along with closing costs. So does working with an agent really save you money? Let's take a look at the process:

1) Negotiation-By not working with a real estate agent, you leave the negotiation in your own hands. If you are not familiar with County Records of closed sales within the past 6-12 months, you may be overpaying. Closed sales, pending sales and active listings and financing can all contribute to the price you will pay but if this information is not readily available, you may wind up spending more money than you bargained for. A real estate agent can provide these facts and more prior to submitting an offer. By working with a knowledgeable real estate agent, you could save up to 25% or more on the purchase along with closing costs. Quite substantial! The benefits include less taxes and as a buyer you are not paying the real estate commissions. It's really a win-win! As a seller, understanding the market and where to price your home along with getting buyers to see the home and fall in love with it is another reason to use a real estate agent. If the agent increases your profits to cover the commissions you pay it's a win-win as well.

2) Market knowledge-Real estate agents pay to utilize services such as Sandicor and the Multiple Listing Service to both list property and search for homes. Included in this service is the ability to research County Records for past sales. There are several tools to provide both buyers and sellers with a Comparative Market Analysis to gain insight into what other homes with similar square footage and ammenities have sold for and are currently active on the market. This is a way both buyers and sellers can gauge how the market is performing and make and educated decision.

3) Closing-Getting the buyer or seller to commit is only part of the process. Taking you through inspections, time periods and financing is a whole other ball of wax. In a climate where financing can have challenges and homes need repair, these can become issues and get very tricky without an experienced agent to lead both parties to the finish line. Does the buyer want a home warranty? Does a termite inspection need to be completed? Will the lender accept chipped paint and an unfinished bathroom? These are all great questions and ones that an experienced agent will have handled and can assist with. This can be worth it's weight in gold for both parties to wrap up the transaction.

So does the end really justify the means? Our most recent closed sale in a local condominium development closed for over $50,000 less than the appraised value. It was a non-arms length transaction, meaning no parties were related. So was it good negotating or luck? You know my answer!

*Disclaimer: Every sale is different and must be evaluated on it's own merit. As Certified Negotiation Experts (CNE), West Coast Living Real Estate Group strives to negotatiate the best pricing for both buyers and sellers and come to a fair agreement.

San Diego Short Sales

Tips for Homeowners Seeking a Short Sale

It's a New Year, full of anticipation of how the market will perform. Will interest rates go up? Will politics effect the market? Have we reached the bottom on housing prices? All of the answers remain to be seen, however homeowners underwater or unable to make their mortgage payments have the option of short selling their home. Selling a home for less than what is currently owed in mortgage liens against the property is considered a "Short Sale". Here are some helpful tips for homeowners considering a Short Sale:

1) Seek a qualified real estate professional-A real estate professional that has initiated, planned, executed, monitored and closed short sales is a valuable asset to both buyer and seller. An integral part of the process is communication between both the bank or lenders and all parties involved. Agents that have worked Short Sales realize that a seller is distressed. Let a professional agent assist you with selling personal items that are not required to be left behind, schedule showings around you and communicate status updates weekly.

2) HAFA Short Sale Program- The Home Affordable Foreclosure Alternative program may be available to you if you meet the following criteria (HAFA Program):

• You live in the home or have lived there within the last 12 months.
• You have a documented financial hardship.
• You have not purchased a new house within the last 12 months.
• Your first mortgage is less than $729,750.
• You obtained your mortgage on or before January 1, 2009.
• You must not have been convicted of a felony, larceny, fraud, forgery, money laundering or tax evasion within the last 10 years in connection with a mortgage or real estate transaction. 

New Year, New Home

Home Sweet Home

It has never been a sweeter time to own a home. This may sound cliche but seriously with interest rates in the 3-4% range for conforming loans amount less than $417k and housing prices still at all time lows, if you've been waiting, now is the time to move forward. Search all San Diego listings from our website! You can control pricing, size, bedroom count and much more. There is a feature to save your favorites and to receive alerts when a home becomes available that meets your criteria.

If you are a seller considering a Short Sale. Now may be the time to review your finances and determine if a Short Sale is the best solution for your family. The HAFA Program allows sellers to receive up to $3,000 for moving expenses, etc. The amount is given to sellers at the close of escrow via check disbursement. FHA guidelines have stated that a borrower is eligible for a loan three years after a Short Sale. Call us for details! We are happy to discuss any questions or inquiries you may have by email, phone or in person.

We wish you a Happy, Healthy and Prosperous New Year!

A Home for the Holidays

Buying a Home now could save you $$$!

We are heading into the holidays season and the prospect of a new year filled with goals and business plans. So is now the right time to buy? Well interest rates say "YES!" Rates have been hovering below 4% on a 30 year fixed and even lower for 15 year and ARM loans. Buyers and sellers negotiate year round and this may be your chance to snatch up a real deal. Keep these tips in mind when shopping for a new home during the holiday season:

1) Market time-How long has the home you're eyeing been on the market? Sellers may be more negotiable to not carry mortgage debt into the next year. In addition, looking at comparable sales over the past few months may give buyers the leverage they have been waiting for.

2) Home Inspections-Looking beyond the decorative lights and tree trim. Insuring a home is in optimal condition will save you money in repairs later down the road. A home inspection is always a wise choice!

3) Home Loans-Now is a great time to buy with interest rates hovering below 4% on a 30 year fixed. The combination of pricing and interest rates may really make the season merry and bright! Agents may also negotiate closing costs on your behalf which could trim your out-of-pocket expenses and leave more $$$ for your new home.

It is our opinion that it's always a good time to buy as real estate remains the top investment for over 62% of Americans polled who still think it's a good investment over the next ten years. Click here for the article in REALTOR.com. The biggest takeaway from the article, "Don't buy more house than you can afford." 'Tis the season for deals and real estate is no exception.

Finding a Great Real Estate Agent

What Does a Great Agent Mean to your Family?

Finding a great real estate agent can take some work. Sure it's easy enough to receive a referral from a friend or neighbor, but have you interviewed agents to find our who measures up? Hiring a great agent can mean the difference in paying closing costs or not. It can determine the price you ultimately pay for your home. Here are some tips in interviewing real estate agents:

1) Agent Profile-Most agents have a website. Checking out the agent's website and profile online can be very important in determining if that person is a match. Do they handle Short Sales if your a seller in distress? Have they worked with First Time Homebuyers and FHA loans? Having an agent that understands his/her business is a tremendous help and can assist in educating you on a process they have already been through.

2) Negotiation-This can be an art or an act of war. Does the agent have experience negotiating? Some agents have chosen to advance their skills and become "Certified Negotiation Experts" through courses offered to enhance and deepen their knowledge. A good negotiator should understand what is important to you and do their best to achieve maximum results.

3) Licensing-Although you may not think this is an issue. It is. An agent must be licensed through the State of California and be listed under a brokerage. An active license means the agent has complied with mandatory testing and licensing procedures in order to practice real estate including understanding fair lending and ethics. You can chech the Department of Real Estate. Click here.

4) Creative Solutions-In tight lending markets, it's good to have an agent on your side that understands how to creatively solve issues. Ask your potential agent, when is the last time you creatively solved a financing problem? Does this happen often? Do you work with a lender currently that gets transactions closed?

A real estate agent can more than earn the 2-6% commission they received or just collect a paycheck. Make sure your agent is working for you.

5 Tips for Refinancing a Home

With how strict lenders have been in reviewing borrowers income, assets and financial history, we have heard many potential borrowers ask if lenders are still refinancing home loans? The answer in a nut shell is "Yes" but be prepared to provide more documentation than your last refinance. Some tips to keep in mind:

1) Prepare your financials ahead of time-Lenders want to see 1 full month of pay-stubs (30 days) to verify your salary including overtime, bonus and commissions. Having both your W-2's and tax returns available for the past two years is wise even if they have not been requested from the lender yet. Many banks are referring back to your tax returns 1106 Itemized Deductions to verify what expenses you have deducted and removing this from your income.

2) Create a Schedule of Real Estate if you own multiple properties-This will save time and questions from all parties involved down the road. A Schedule of Real Estate can be on a spreadsheet or simply written out in a Word Document but should contain the following: Property Address, mortgage balance, mortgage payments, lender(s), taxes/insurance and estimated value.

3) Credit Score-It's a good idea to pull a free credit report ahead of time. Annual Credit Report offers a one time free credit report every year. Click here to obtain. Once you review there will be no surprises when the lender pulls your report and receives your score. The lowest middle score of all borrowers is the one that lenders use to determine your interest rate.

4) Interest Rates-The market is volatile and changes every day. Unless a lender "locks" your loan, interest rates will continue to move. Ask your lender for a range of interest rates and compare with your current interest rate.  Most homeowners want to save a minimum of 1% on the rate to recover the costs involved in the refinance. It's not a bad idea to consult your tax advisor on what points or fees might be deductible on your taxes. Most savy brokers can offer a range of interest rates from the lowest possible rate available to higher rates which may include a credit towards your closings costs. Always ask!

5) Appraised Value-Because banks currently use Short Sales/Foreclosures as comparables this can put a damper on your refinance dreams if values in your neighborhood have dropped. However, the HARP loan can assist especially since the cap is being removed, meaning even if your home is upside down by over 125% you may still be eligible. Lenders are awaiting programs details. Stay tuned!

Everyone has a different loan scenario, please do not hesitate to contact us with questions regarding home loans. We would be happy to assist you in finding the right fit.