by Houtan Hormozian | Oct 18, 2024 | CRESTICO
Communication is a word that we often hear but rarely think about. We know it is important and we know we are supposed to do it on a daily basis (like brushing our teeth) but very few of us actually dedicated time and energy to the act of it. Communication becomes particularly important in business relationships, especially your relationship with your Real Estate agent. You would think a person that sells and buys real estate for individuals would know how to communicate effectively, but as of late, I am coming across many situations that show me that just is not true.
Recently, I had a showing in a popular community with hundreds of homes in the complex. At the gate of the community were over 50 lockboxes holding the keys to the various units that have been listed for sale. I was showing only 5 units that day, and had made contact with over 10 agents in the days preceding the showing day to set up appointments and let the agents know that I would be showing their listings. Of the over 10 phone calls and emails I made and sent, only 5 got back to me in time and 3 still have not contacted me (three weeks later). This was my first tip-off that perhaps these agents are not experts at communication.
Next, on showing day I arrived at the gate where the lockboxes were and proceeded to get the keys for the units I wanted to show. To my utter and absolutely disbelief, I found myself facing lockboxes with no indication of who the agent was or what the unit number was. There were some agents who had taped their business card to the lockbox or used a permanent marker (oddly enough) to write the unit number on the box – but the overwhelming majority were blank. I could not believe this. How does one think he/she can sell a listing if the showing agents and prospective buyers cannot gain access to the unit?! I made a few phone calls, only one of which was answered and finally opened the lockboxes and got the keys. Some of the boxes had multiple units’ keys in there with no labels, again! This pattern was beginning to alarm me and my clients finally arrived so I brushed it off and we began our tour.
Now, I had made appointments and given courtesy notice that morning to all of the agents of the units I would be showing. Two of the units were vacant so that was no problem, but the last three still had people living in them. One family I felt particularly bad for, was trying to put their baby to sleep when I rang the doorbell and ended up with a crying infant because their agent had forgotten to tell them that their home would be shown today (by appointment!). Another lady had just gotten out of the shower and was more than shocked and surprised that anyone had made an appointment to see her home.
I write this today to let all you prospective sellers and buyers know to ask your agent about these things and be aware that although you may think your agent is a key communicator, he or she may not be. A communicative and professional agent would have let his or her clients not only know that someone was coming by to see the unit but would also conduct himself/herself in such a professional manner as to make it easy and stress-free for a prospective buyer to want to purchase the home. In this unique market, and in the aftermath of the mortgage crisis, we as real estate agents should work towards reviving the professionalism and integrity of our industry so that we can do our part in this nation’s recovery. Recovery starts with one person who changes the image of the unprofessional and shady real estate professional in the mind of just one client who then changes the mind of another and so on.
by Houtan Hormozian | Oct 18, 2024 | In The Press
Tell us a little bit about your experience, company history and the services you offer.
At CRESTICO, we pride ourselves on being the company that is changing the face of the Real Estate industry with our top notch service philosophy which focuses on meeting your needs as a consumer. Our Home Ownership Services Strategy includes affiliations with mortgage, title and closing services, home warranty and other services that are essential in the real estate transactions that are made available to customers like you. It’s our attempt at making the home buying or selling experience less stressful to you, presented as a one-stop shopping experience. CRESTICO is your one-stop shop for all your real estate and mortgage lending needs. We were created for the purpose of serving a homeowner with the highest quality service and providing all the services you could possibly need in connection with the purchase and/or sale of your home.
We will work for you to get you everything you need. We have great relationships and ties in the community and real estate professionals, and can get you the best pricing possible on loans as well! Sometimes the details of buying and selling real estate can be confusing, scary, emotional and nerve racking. We believe in researching the details and presenting them in common terms in order to put your mind at ease and take you through the process with no stress and frustration.
Can you briefly explain what a reverse mortgage is?
A reverse mortgage is loan available to homeowners who are over 62 years of age. It enables them to convert some of their home equity into cash. Generally, it is a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care. The loan is called a reverse mortgage because the traditional mortgage payback stream is reversed. Instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.
What are the most common circumstances when a homeowner would qualify for a reverse mortgage and want to consider applying for one?
There are several factors required for a reverse mortgage, first the age qualification, meaning that borrowers listed on title must be 62 years old. Next, there must be a primary lien, meaning that a reverse mortgage must be the primary lien on the home. Any existing mortgage must be paid off using the proceeds from the reverse mortgage. (Reverse mortgage proceeds can be used.) Third, there are occupancy requirements, which means that the property used as collateral for the reverse mortgage must be the primary residence. Vacation homes and investor properties do not qualify. Fourth, there are the taxes and insurance which must be kept in current status along with other mandatory obligations, including condominium fees, or the borrower may be susceptible to default. Finally, the property condition must be kept up and the borrower is responsible for completing mandatory repairs and maintaining the condition of the property.
How long does the process typically take?
From application to closing, it generally takes 20 to 30 days, as in most typical real estate transactions.
What are some of the biggest issues you’ve seen homeowners in Southern California face when it comes to a reverse mortgage?
Unfortunately, California was one of the hardest hit markets in the recent economic crisis. Many seniors bore the brunt of the misfortune. Sadly, some lenders tended to aggressively pitch loans to seniors who cannot afford the fees associated with them, not to mention the property taxes and maintenance. Others wooed seniors with promises that the loans are free money that can be used to finance long-coveted cruises, without clearly explaining the risks. Some widows faced eviction after they were pressured to keep their name off the deed without being told that they could be left facing foreclosure after their husbands died. Now, as baby boomer generation heads for retirement and more seniors grapple with dwindling savings, the newly minted Consumer Financial Protection Bureau is working on new rules that could mean better disclosure for consumers and stricter supervision of lenders. More than 775,000 of such loans are outstanding, according to the federal government.
What advice would you give to people in the Southern California area who need help with a home loan?
I would encourage them to educate themselves on the options that they have when it comes to loan products and mortgage programs. At CRESTICO, we believe that the educated consumer always makes the best decision for himself and his family which ultimately results in a better society and economic environment for everyone.
What’s the best way for people to get in contact with you and your company?
You can visit us on the web at www.crestico.com or contact me directly via email athoutan.hormozian@crestico.com or by telephone at (310) 933-4748.
http://www.southerncaliforniahomes.com/articles/the-reverse-mortgage-process-an-interview-with-houtan-hormozian-of-crestico-funding
by Houtan Hormozian | Oct 18, 2024 | CRESTICO
There is a new law, AB 1373 (eff. Jan. 1, 2011) which places restrictions and disclosures on grant deed copy services. This law cracks down on the mailed advertisements sent to property owners offering, for compensation, to provide a copy of the grant deed or other record of title by making it a crime unless certain disclosures are provided and the advertisement doesn't mislead a person into believing that the company is affiliated with a government agency.
For more information visit: www.crestico.com
by Houtan Hormozian | Oct 18, 2024 | CRESTICO
HUD-1 Going Away: Understand New Closing Forms, Procedures
The HUD-1 settlement statement and Good Faith Estimate forms are going away on August 1. The Truth in Lending Act disclosure is going away as well. In their place will be a new closing disclosure and a new loan estimate. There will be changes to the closing process as well, including a new rule requiring everything to be in place three days prior to closing. And last-minute changes face new hurdles. Learn about the changes in this walk-through.
There are also new rules for the closing procedure. One rule requires all forms to be ready three days prior to closing. NAR is recommending you actually get everything ready seven days prior to closing, so when you go into the three-day period, you don’t have to make any changes. Because making changes as the clock winds down comes with a cumbersome set of hurdles.
What this means is, you and the other settlement service providers, including the lender and title agent, are under the gun to get everything squared away earlier than you have to today. And the buyers and sellers have to be cooperative as well, because if last-minute changes are made, a new three-day waiting period kicks in, at least in some cases.
The good news is, you have until August 1 to get familiar with the new forms and learn about the new closing procedures, and NAR is hosting a series of webinars on the topic. To learn when the next one is, go to Realtor.org/respa.
The video above, with Ken Trepeta of NAR Government Affairs, provides a concise overview of what to expect and also shares some tips on how to decrease the likelihood of snags in this new environment.
The CFPB’s goal in making these changes is to increase transparency for consumers. Start your education process by accessing the 5-minute video.
Source
by Houtan Hormozian | Oct 18, 2024 | CRESTICO
Areas that will be affected in California are Riverside, San Bernardino, San Diego, Orange, or Los Angeles county. Starting October 1, 2011, temporary conforming and FHA insurable loan limits will be lowered nationwide.
HUD has also announced new (lowered) FHA insurable loan limits across the nation. California has several counties that will be negatively affected and potentially impact home buyers who have not saved a large down payment.
"Temporary loan limits" were enacted as part of the government’s 2008 economic stimulus package. At the time, the financial sector was entering its crisis and private mortgage lending was practically done. Financing was scarce for both homeowners and home buyers for whom loan sizes exceeded Fannie Mae and Freddie Mac’s national $417,000 limit — even for those with excellent credit and income.
Riverside and San Bernardino will no longer be considered a high cost area by Fannie Mae or Freddie Mac…which will affect you if you are looking to buy a home in the $350,000 to mid $450,00 price range.
County New FHA loan Limit New Conforming Limits will be as follows:
Riverside County $355,350 for FHA and $417,000 for Conforming
San Bernardino County $355,350 for FHA and $417,000 for Conforming
San Diego County $546,250 for FHA and $546,250 for Conforming
Orange County $625,500 for FHA and $625,500 for Conforming
Los Angeles County $625,500 for FHA and $625,500 for Conforming
The max conventional and FHA loan amount in Riverside and San Bernardino county is currently $500,000, but starting October 1st, 2011, it will drop by $144,650 for FHA , and for conventional loans, it will drop $83,000.
If you live in a high-cost area, or a former high cost area, mortgage rates may be low, but the amount of loan for which you qualify may be much less than you expect. You may find yourself ineligible to use a low down payment FHA loan to purchase your home, thus requiring you to with a HUGE down payment.
Whether you’re planning a refinance or a purchase a home, keep an eye on the calendar and act sooner…..contact Crestico today!
www.crestico.com
by Houtan Hormozian | Oct 18, 2024 | CRESTICO
The question that I get asked most often from client is “Is it a good time to buy a house?” Well, the answer to this question almost always depends on who is asking and what his/her reasons for buying a home are. Often people fall into the traps of wanting to buy a home so badly that they overlook many of the dangers and potentially stressful things that could happen down the line.
Many of my short sale clients have made themselves “house poor” (as the Department of Housing and Urban Development calls it). This is something I often warn my clients about. Being “House Poor” means that “… by putting too much emphasis (and income) into your housing expense, you may be forced to cut other expenditures, whether it be for travel, entertainment or some more important needs, such as education expenses or retirement funding.”
By making inappropriate housing decisions, many have exposed themselves to a great deal of financial exposure. By pushing themselves to their financial limits, they find themselves unable to meet their mortgage payment obligations as that payment takes a higher percentage of their income. When funds get short, other loans and obligations (and credit ratings) can and will suffer.
Additionally by not completely understanding the economic state of the nation, often homebuyers ignore housing values. Economic downturns are often accompanied by, at the very least, stagnation in housing values. And, even though it sounds crazy in markets that have seen double-digit annual appreciation in recent years, occasionally housing values will decline (as they have in recent years). Worse than a situation where it is difficult to pay the mortgage is one where there is the prospect of losing a home–or trying to sell it in a distressed market.
However, for savvy buyers with steady incomes, good credit and supple savings – this is a great time to buy a home. Firstly, mortgage Interest Rates are at their lowest levels years, meaning lower payments and the ability to devote less income to housing expenses. However, buyers should be warned against buying more house than they need simply because they can afford the payment.
Because less people are getting qualified for loans, there is less competition. As the market softens, less buyers will be in the market, meaning that negotiating position will be enhanced–and, it is unlikely that buyers will have to pay thousands of dollars over the listing price in order to get the home they want. More negotiating power usually means lower prices and lower monthly payments.
All in all, it can be a good and a bad time to buy a home depending on who you are and your financial health.
For more information, please visit www.crestico.com.
