by Houtan Hormozian | Oct 18, 2024 | CRESTICO
These days, it seems like there are no homes for sale in Los Angeles. The end of the year though, has and continues to be a great time to buy because although most people are busy with the holidays – you can capitalize on a great deal! Another driving force is the expiration of the Mortgage Debt Relief Forgiveness Act. This Act is set for expiration at the end of the calendar year.
The federal government created this Act in 2007 to allow struggling homeowners to avoid being held responsible for the “income” they received when they managed to get out from under their heavy mortgages through short sales and other transactions. The Mortgage Debt Relief Forgiveness Act exempts current homeowners from the hidden income taxes that are normally incurred when mortgage debt is forgiven. With this Forgiveness Act not in place the IRS will consider the mortgage debt wiped out without actually being paid back as income and tax it as such.
Struggling homeowners now have another reason to try and sell their homes in short sales and other sales before the end of the year. This could create the right opportunity for a buyer looking to move before the end of the year. Some short sale servicers are even expediting these transactions to get a short sale closed before year’s end.
In this market where many homes are still underwater and retiring seniors are relying on the profits from the sale of their home, as a buyer, you might stand to benefit from the inventory changes. Contact your local Crestico office today for more information.
by Houtan Hormozian | Oct 18, 2024 | CRESTICO
Ever since I decided to buy a home for myself, I have noticed more and more the increasingly unethical manner in which agents deal with their listings. Withholding offers, artificially inflating prices and then selling to their own buyers (so they can increase their own commission) at LOWER prices! It makes me wonder how this market is ever going to get fixed. In 2006, the problem was predatory lending practices, unscrupulous loan officers and unethical notaries. Today, it seems as if Real Estate Agents are making up for lost time and joining in the game. With today’s shortage of inventory, it’s not uncommon for an agent to sell a house within days of listing it and more and more, listing agents are holding out to find their own buyers so they can feed their greed.
The only way to remedy this situation, IMHO, is for sellers and homeowners to wake up and be a more active part of their home-selling process. Make sure that you clearly tell your agent you want to see all offers presented within a reasonable time of being presented to the agent. Make yourselves aware of the rules and regulations concerning listings and agency agreements with your listing agent. Below are a few sections of the MLS rules pertaining to offers.
9.4 Presentation of Offers. The listing broker must make arrangements to present the offer as soon as possible, or give the cooperating broker a satisfactory reason for not doing so. In the event the listing broker will not be participating in the presentation of offers, the listing broker shall clearly indicate this fact in the listing information published by the MLS.
9.5 Submission of Offers and Counter-Offers. The listing broker shall submit to the seller(s) all offers and counter-offers until closing unless precluded by law, governmental rule, or expressly instructed by the seller(s)/landlord(s) otherwise. The cooperating broker acting for a buyer(s)/tenant(s), shall submit to buyer/tenant all offers and counter-offers until acceptance unless precluded by law, governmental rule, or expressly instructed by the buyer(s)/tenant(s) otherwise.
9.6 Right of Cooperating Broker in Presentation of Offer. The cooperating broker has the right to participate in the presentation of any offer to purchase he or she secures. The cooperating broker does not have the right to be present at any discussion or evaluation of that offer by the seller(s) and the listing broker. However, if the seller(s) give written instructions to the listing broker requesting that the cooperating broker not be present when an offer the cooperating broker secured is presented, the cooperating broker shall convey the offer to the listing broker for presentation. In such event, the cooperating broker shall have the right to receive a copy of the seller’s(s’) written instructions from the listing broker. Nothing in this section diminishes or restricts the listing broker’s right to control the establishment of appointments for offer presentations.
In today’s economy you have to be your own best advocate and know your rights! If you want top dollar for your home, you have to be proactive and informed!
by Houtan Hormozian | Oct 18, 2024 | CRESTICO
The Hope for Homeowners program is what is being broadcast as the last hope for America’s Homeowners. Do you have a question about it? Read on for more information and feel free to use the contact information below, to get PERSONALIZED answers to any questions you may have!
As of November 19th, 2008. many changes have been made to the lending system in this country. Primarily, the loan to value ratio (LTV) has been increased from 90% to 96.50% for borrowers whose monthly mortgage payments are no more than 31 percent of their monthly gross income. Next, the process to remove subordinate liens has been simplified. Payments made up front are now allowed to motivate lienholders to give their consent and release the liens; thereby making more borrowers eligible for the program. Also, the terms of financing have been expanded and now incorporate 30 and 40 year amortization schedules, thereby reducing payments amounts.
The "HOPE for Homeowners Act of 2008" creates a new Federal Housing Administration program that will back FHA-insured mortgages to borrowers that are facing problems and stress as a result of their housing situation. New mortgages that will be offered by FHA-approved lenders will encourage and implement the Refinancing of abusive, unfair and malicious loans to dramatically improved terms that will allow distressed homeowners who are having difficulty making their mortgage payments some breathing room and enable them to keep their homes and families intact.
If you or anyone you know is facing difficulties when it comes to making their monthly mortgage payments, NOW is the time to act. If you have any questions regarding how this program could work for you, contact us and we will help you starting saving your future today!
by Houtan Hormozian | Oct 18, 2024 | CRESTICO
The Hope for Homeowners program is what is being broadcast as the last hope for America's Homeowners. Do you have a question about it? Read on for more information!
As of November 19th, 2008 many changes have been made to the lending system in this country. Primarily, the loan to value ratio (LTV) has been increased from 90% to 96.50% for borrowers whose monthly mortgage payments are no more than 31 percent of their monthly gross income. Next, the process to remove subordinate liens has been simplified. Payments made up front are now allowed to motivate lien holders to give their consent and release the liens; thereby making more borrowers eligible for the program. Also, the terms of financing have been expanded and now incorporate 30 and 40 year amortization schedules, thereby reducing payments amounts.
The "HOPE for Homeowners Act of 2008" creates a new Federal Housing Administration program that will back FHA-insured mortgages to borrowers that are facing problems and stress as a result of their housing situation. New mortgages that will be offered by FHA-approved lenders will encourage and implement the Refinancing of abusive, unfair and malicious loans to dramatically improved terms that will allow distressed homeowners who are having difficulty making their mortgage payments some breathing room and enable them to keep their homes and families intact.
If you or anyone you know is facing difficulties when it comes to making their monthly mortgage payments, NOW is the time to act. If you have any questions regarding how this program could work for you, contact your local Real Estate agent who can help you start saving your future today!
by Houtan Hormozian | Oct 18, 2024 | CRESTICO
It’s a buyer’s market!! You’ve read it, you’ve heard it and you see it everywhere you go. Signs, slogans and ads telling you it’s a buyer’s market and to get out there and buy a home! But before you log on to your local MLS or start going to open houses in your dream neighborhood, there’s one thing you should do to prepare yourself. You need to figure out HOW MUCH of a home you can afford to get out there and buy. There is no worse feeling in my opinion, then taking a tour of a gorgeous house, falling in love with it, mentally moving in and arranging your furniture JUST to find out that you can not afford it after all.
A major factor in owning a home is being able to afford it. Now, I’m not just talking about the expenses that come with home ownership in terms of maintenance, decorating, furnishing and tax. I am talking about the mortgage. Now, unless your rich Uncle Frank is leaving you a hefty inheritance, you are going to need to figure out your total monthly income and something called your DTI. This is your Debt to Income Ratio. This little fraction is going to be a key factor in the bank’s decision regarding how much money to loan you to buy your home. Basically, this is going to be a numerical expression of how much of your monthly income is already spent on bills and other expenses.
Now there are two different types of DTI: front and back. Front DTI is basically the amount of your income that is going towards your current housing costs, rent for renters and principal, interest, tax and insurance for homeowners. The other DTI is back which is basically the amount of your income that goes towards expenses like car payments, phone bills, credit cards and other kinds of recurring debt.
In order to get an FHA Loan, your front DTI needs to be about 31% which means that if your monthly income (gross) is $5,000, your payment cannot be more than $1,550. Conventional loans allow for a DTI as high as 33% which would make your payment a maximum of $1,650. Next you will need to determine your back DTI which is also based on your monthly income. Your back DTI reflects your debt and for an FHA loan is about 43% and a conforming is about 45%.
So, on that $5,000 monthly income of yours, you can have $2,150 in monthly payments for an FHA loan and $2,250 for a conventional loan. So if your car payment, student loans, credit cards, phone bill and child support expenses are less than $600 ($2,150 – $1,550), you will effectively qualify for an FHA loan.
This is something you should consider when deciding on buying a home. Although it is a buyer’s market, and there are several great deals out there; you want to make sure that a home you buy will be a home you can KEEP and that your home won’t turn into someone else’s great deal after you realize you can’t make your mortgage!
by Houtan Hormozian | Oct 18, 2024 | CRESTICO
Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.
Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.
