Check out our new listing. 4129 Gundry Ave. Long Beach $425,000

Just Listed: Mid-Century Modern Cliff May Rancho $575,000

Under contract: 5005 Halifax Cir. Cypress, CA $499,000

Under Contract within 7 days, Sold way over asking with 21 offers!

Under Contract within 10 days of coming on the Market w/Multiple Offers and Sold Over asking Price

Any Lender who Agrees to a Short Sale must accept it a Payment in Full!

This is a great victory for all homeowners who are considering doing a short sale. Now you can get out of your property without the fear of the banks coming after you for the difference. Read below...

July 15, 2011

CALIFORNIA ASSOCIATION OF REALTORS® applauds Gov. Brown on signing SB 458 into law

LOS ANGELES (July 15) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown on signing SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.

Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.

“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”

SB 458 contains an urgency clause making it effective upon signing.

Just Listed-Hurry priced to sell fast...visit www.5894apia.com for a virtual tour

Open House Dates:
Thur. July 7th 10am-1pm
Fri. July 8th 3pm-6pm
Sat. July 9th 1pm-4pm
Sun. July 10th 1pm-4pm

Hurry, 97% of our homes sell within the first 30 days!

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through October 31, 2011.

HomePath® Buyer Incentive: June 14 – October 31

Terms and Conditions:
Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer.

Initial offer must be submitted on or after June 14, 2011 and close by October 31, 2011. Initial offers made prior to June 14 are not eligible for the June 14 – October 31 incentive.

Sale must close on or before October 31, 2011. No exceptions will be made to this deadline. (Note: Initial offers submitted after September 15, 2011 may not close by the incentive deadline of October 31, 2011.)

Buyers must be purchasing a HomePath property to use as their primary residence to receive closing cost assistance. Second homes and investment properties are excluded from the incentive.

Sales closed via the retail channel are eligible, including those utilizing public funds. Pool and auction sales are ineligible.

Buyers must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.

Buyers with total closing costs under 3.5% are not eligible to receive the difference as a credit.

Properties where Fannie Mae acquired the property in connection with financing under a reverse mortgage are not eligible. Ask the listing agent for details.

Buyers should consult their lenders for guidance on financing. Lenders and mortgage products may impose their own limitations on the use of the 3.5% incentive. For example, the lender may consider the incentive a Seller Contribution and limit the amount to 3.0%. In those instances, the remaining 0.5% will no longer be available to the buyer.

Fannie Mae reserves the right to remove any property from promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.

Open House Jun 4 (1pm-4pm) 4512 E. Vermont Long Beach, 90803 (Belmont Heights) Only 1 mile to the BEACH!

Remodeled/New Construction, Contemporary 3 bedroom 3 bath Home Only 1 mile to the BEACH! New Family Room and New 2 car detached garage with roll up door. Light & Bright Living Room with 25 year liminate floors and Venetian Plaster Fireplace. New Kitchen w/Granite Counters, Pantry, & Stainless Steel Appliances including Gas Cooktop, Oven, Dishwasher, & Breakfast Bar that opens to Dinning Area. Master Bedroom Suite with a New Bathroom that has travertine flooring, Skylight tube, and Granite Vanity. New Family Room opens to New Wooden Deck with a view of the Private Peaceful Backyard. 25 years 12mm Laminate Floors throughout. New: Roof,Copper Plumbing, Tankless Water Heater, Ceiling Insulation, Wall Furnace, Doors, Paint, Top of the line Designer Sinks & Fixtures, Sod, Sprinklers, Drip System, and some Windows. Come see this Gorgeous Belmont Heights Home!!!

Flip this Property-New FHA Rules you need to know before buying a Flipped Property

This is an excellent article that discusses the rules that FHA has put in place for "flipped" properties (homes that are sold within 90 days of purchasing them).

Via Michael Deery (Citywide Financial Corp):
Buying and selling flipped properties can be a real pain in this market. For example, did you know that lenders require a 2nd appraisal on flipped properties where the seller is making more than 20% within 90 days and is selling to a FHA buyer, and the buyer is not allowed to pay for this 2nd appraisal? Last month over 26% of all homes purchased in California came from investors, 31% were all cash buyers, and the median price paid by these investors was $198k. These are the homes that are being flipped and sold to first time buyers usually within a 90 period. As most first time buyers are using FHA financing, understanding the rules that are in place to get FHA financing on flipped properties is essential for success in today’s market place. Here are 5 important rules to follow that will ensure these transactions will close.

FHA Flip Rule Update

First of all here is an update about flipped financing from the FHA. Just recently the FHA announced that they do allow financing on flipped properties within 90 days of resale as long as certain requirements are met. But NOT all FHA lenders are offering financing on flipped properties within 90 days, as some of them are choosing not to fund this type of transaction. As there are only a few lenders that allow financing when the seller has both a net profit of OVER 20% and the property is being resold within 90 days, very strict rules are in place.

We have been funding quite a few of these flipped transactions over the past few months, so here are 5 of the most important rules you need to know to ensure the transaction will close.


5 Important Flip Rules to Follow to Ensure closings
* These rules apply to a property that is being resold within 90 days and there is more than a 20% profit to the seller. *Not all of these rules apply to a flipped property that is being resold that is more than 90 days old.

1. A 2nd Appraisal is required if more than 20% profit
Almost all the lenders I know that are offering FHA financing on flipped properties are requiring a 2nd appraisal if there is more than 20% profit to the seller within 90 days of purchasing the property. The appraisal must clearly address the completed repairs and/or renovation to substantiate the increased value. Also very important, the FHA does not allow the buyer to pay for the 2nd appraisal, yes someone else must pay for the 2nd appraisal fee! So make sure to get this addressed upfront who will pay for this 2nd appraisal fee.
2. A home inspection is required on all flips

A home inspection is required on all flips by the lenders. The inspector must have no interest in the property or relationship with the seller, and must not receive compensation for the inspection for any party other than the borrower. Usually any and all repairs that are listed on the inspection report will be called out by the underwriter to be fixed by the seller. Remember on FHA financing the buyer is not allowed to pay for any repairs, so if there are going to be repairs needed, make sure these are addressed with the seller ahead of time so there are no last minute surprises at funding.


3. Health & Safety repairs

Any health and safety repairs noted on the inspection reportt, not already called for by the appraisers, will be required to be repaired as a “concurrent with funding” condition, documented with a CIR to include photos.
4. All transactions must be arms-length

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. For example, some lenders do not allow the escrow company to be affiliated with the buyer or the seller as this is an identity of interest, otherwise a new escrow will have to be opened up during the transaction. Many times the investor who is selling the property will have an escrow company too, this is not allowed by some lenders, so make sure this is checked up front if there is an affiliation with any two parties on the transaction.
5. A minimum 12-month chain of title is required

A minimum 12-month chain of title will be required on the preliminary title report to determine no pattern of previous flipping activity exists for the subject. If the property has been flipped twice in the past 12 months, it will not qualify for FHA financing.

I hope you found some of these tips above helpful.

If you have any questions about a FHA flipped property scenario please do not hesitate to contact me directly at 562-449-7607

Just Opened Escrow on 415 Burris

Listed Burris on Thursday and opened escrow on Monday. We don't mess around, we sell our homes at Top Value in the shortest amount of time.

Call now if you have a home to sell and want it Sold fast.

Just Listed Remodeled Home-Standard Sale- Priced to sell quick

Want to pay less on your property taxes? Apply for a decline-in-value eassessment.

What is a Decline-in-Value Reassessment The values of single-family residences and condominiums throughout the State have been declining. While the declines in Los Angeles County have not been as dramatic as those in other parts of the State, property values have dropped in nearly every area of Los Angeles County. How does this impact your property taxes? In 1978, California voters passed a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a "decline-in-value." A decline-in-value occurs when the current market value of your property is less than the assessed value as of January 1. The assessed value is the value shown on your most recent property tax bill. Typically, an application is required to initiate a review of your property’s value by the Assessor. However, in 2008 the Los Angeles County Assessor’s Office began doing a proactive review of single-family residences and condominiums based on an analysis of market trends in Los Angeles County. For 2008, single-family residences and condominiums purchased between July 1, 2004 and June 30, 2007 were reviewed. For 2009, the review was expanded to include single-family residences and condominiums purchased between July 1, 2003 and June 30, 2008. For 2010, the review included single-family residences and condominiums purchased between July 1, 2003 and June 30, 2009. In some particularly hard-hit areas of the county, the review included properties purchased prior to July 1, 2003. You can check our "Will My Property Be Reviewed for a 2011 Decline-in-Value" webpage to find out if your property automatically qualified for a review. Property owners whose property was included in the review were notified of the results in writing by June 2010. Click the Title of this article to take you to the Assessor's website.

Fewer than three of five short sales close in California

Fewer than three of five short sales close in California

C.A.R. released the results of a statewide survey on short sales and the challenges REALTORS® face in working with lenders and servicers.

The most frequent problems REALTORS® cited in working with lenders and servicers during the short sale process include unresponsiveness, onerous procedures, and long processing delays. The survey also found that fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures.

“The lack of standardization, long approval process, and lack of lender approvals are hampering what should be a 45-day short sale process,” said C.A.R. President Beth L. Peerce. “Instead we’re hearing the typical response time for lenders is at least 60 days, and in many instances, their response time exceeds 6 months.”

Autumn and Cassidy have closed 13 short sales are are negotiating 3 as of today. We have 100% success rate on all our Short Sales, so if your in need of our help or know someone who is looking to short sale then give us a call.

Get Money for Making your Home More Energy Efficient While Buying You New Home

Energy Efficient Mortgage Program FHA's Energy Efficient Mortgage program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage. Purpose In 1992, Congress mandated a pilot demonstration of Energy Efficient Mortgages (EEMs) in five states. In 1995, the pilot was expanded as a national program. EEMs recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, or savings and loan association, and the mortgage is insured by HUD. FHA insures loans. FHA does not provide loans. Type of Mortgage: EEM is one of many FHA programs that insure mortgage loans--and thus encourage lenders to make mortgage credit available to borrowers who would not otherwise qualify for conventional loans on affordable terms (such as first time homebuyers) and to residents of disadvantaged neighborhoods (where mortgages may be hard to get). Borrowers who obtain FHA's popular Section 203(b) Mortgage Insurance for one to four family homes are eligible for approximately 96.5 percent financing, and are able to add the upfront mortgage insurance premium to the mortgage. The borrower must also pay an annual premium. EEM can also be used with the FHA Section 203(k) rehabilitation program and generally follows that program's financing guidelines. For energy efficient housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD's Title I Home Improvement Loan program. How to Get a EEM: To apply for an FHA insured energy efficient mortgage, contact an FHA approved lender. Eligible Customers: All persons who meet the income requirements for FHA's standard Section 203(b) insurance and can make the monthly mortgage payments are eligible to apply. The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating system (HERS) or an energy consultant. The cost of an energy inspection report and related fees may be included in the mortgage. Cooperative units are not eligible. EEM can also be used with FHA's Section 203(h) program for mortgages made to victims of presidentially declared disasters. The mortgage must comply with both Section 203(h) requirements, as well as those for EEM. However, the program is limited to one unit detached houses. Eligible Activities: EEM can be used to make energy efficient improvements in one to four existing and new homes. The improvements can be included in a borrower's mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life. Other eligibility requirements may be found in the Homeowner's Guide. Eligibility Requirements The borrower is eligible for a maximum FHA insured loan, using standard underwriting procedures. The borrower must make a 3.5 percent downpayment. This 3.5 percent downpayment is based on the sales price or appraised value. Any upfront mortgage insurance premium can be financed as part of the mortgage. Eligible properties are one to four unit existing and new construction. EEMs may be added to some other loan types, including streamline refinances. The cost of the energy efficient improvements that may be eligible for financing into the mortgage is the lesser of A or B as follows: A. The dollar amount of cost-effective energy improvements, plus cost of report and inspections, or B. The lesser of 5% of: The value of the property, or 115% of the median area price of a single family dwelling, or 150% of the conforming Freddie Mac limit. To be eligible for inclusion in the mortgage, the energy efficient improvements must be cost effective, meaning that the total cost of the improvements is less than the total present value of the energy saved over the useful life of the energy improvement. The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating report that is prepared by an energy consultant using a Home Energy Rating System (HERS). The cost of the energy rating report and inspections may be financed as part of the cost effective energy package. The energy improvements are installed after the loan closes. The lender will place the money in an escrow account. The money will be released to the borrower after an inspection verifies that the improvements are installed and the energy savings will be achieved. The maximum mortgage limit for a single family unit depends on its location, and it is adjusted annually. Look online to find FHA's maximum mortgage limits by county. Technical Guidance: EEM is authorized under Section 513 of the Housing and Community Development Act of 1992. Program regulations are listed on the EEM mortgagee letter web page. For More Information: Visit the FHA Resource Center to search the FAQs, ask a question or send an email.
Content current as of 25 January 2011

Five signs that say “buy”

Home buyers sitting on the fence wondering if now is the right time to buy should consider five factors when making this decision: Jobs, recent sales activity, construction, mortgage availability, and anecdotal evidence. Each of these issues can help consumers make the best choice for their situation and financial circumstance.
MAKING SENSE OF THE STORY
Jobs: Although many areas of the country were deeply impacted by the recession, some areas were less affected by job loss. If employment stability is a concern, prospective buyers should review job-growth data from the U.S. Bureau of Labor Statistics at www.bls.gov. The data provided by the Bureau is approximately one month old and shows the direction of the local economy.


Recent Sales Activity: Housing inventory and sales volume should be taken into consideration while house hunting. A large inventory of homes with few actual transactions can be a negative indicator. On the other hand, if inventory is falling and transactions are rising, that is a good sign. In January, the CALIFORNIA ASSOCIATION OF REALTORS®’ Unsold Inventory Index stood at 6.7 months, up from 5 months in December 2010, but down from 5.7 months in January 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.


Construction: Staying up-to-date on the number of building permits issued for local builders is useful for gauging builder sentiment and the future of housing activity. The California Building Industry Association recently announced that California homebuilders pulled 2,920 total housing permits in January, registering a 5-percent decline compared with a year ago and a 56-percent decline compared with December. However, the Construction Industry Research Board is projecting 62,000 total permits will be pulled in 2011, an increase of 38 percent compared with 2010’s total of 44,893 permits.


Mortgage Availability: Home buyers hoping to be approved for a mortgage should monitor local lending patterns. Following the financial crisis, most national banks tightened lending standards; however, some local banks haven’t been impacted as much as large lenders and are more willing to lend, even for higher-priced homes.


Anecdotal Evidence: Although buyers can access home listings online, one of the best ways to monitor the local housing market is to work with a REALTOR® and gather intelligence using their expertise and guidance.

---From The Wall Street Journal (click the title to read full article)---