yanni raz\’s Blog

Back when the housing market was hot, lenders were qualifying borrowers for loans who were probably never able to qualify for a home loan before.   These borrowers are now upside down on the mortgages because the rates adjusted and they can no longer afford their homes, in turn most are going into foreclosure, or being forced to sell through a short sale.  

In turn, homeowners and the government are taking more and more of these institutions to court, stating unfair and predatory practices. While most of these suits are still finding their way through the legal system, most banks have already settled for millions of dollars.  

Wells Fargo, Countrywide Financial and Citigroup are just a few among the rest of the defendants.   Borrowers who are suffering with such issues are turning to the legal system to save their homes.   Many professionals say they have not seen so many cases in over 23 years.  

Some Homeowners are seeking the courts’ help individually, while others are serving as part of class action lawsuits. With foreclosures continuing to rise, borrowers are looking to force banks to modify unaffordable loans or to stop them from foreclosing on homes. Often, they also seek money for loss and damages.  

Banks have faced lending lawsuits and have paid millions of dollars in settlements. But the recent housing boom was fueled by questionable loans that many borrowers had no hope of repaying, because realistically they would not be able to afford it in the long run.

During the housing boom the mortgage industry went after the middle-class borrowers, these people are able to hire attorneys and go after the lenders.   Borrowers in a more sticky financial situation, are turning to attorneys who take payment when the case is won.   In most cases when an attorney is hired to help against the foreclosure of their home, they win the case.  

There are also a ton of class action suits on behalf of thousands of homeowners. A lot of the class action cases are because borrowers were originated payment option adjustable-rate mortgages. This loan allows you borrowers to make very low monthly payments, with the unpaid interest added to the principal balance of your loan. Most borrowers have ended up defaulting on their payments because of this.   The purpose of the lawsuits are to get the lenders to restructure the loan to make it more affordable for the borrower.   This lawsuit will also seek damages for those borrowers who have already lost their homes or paid off their loans.

State attorneys general are also filing suits against the industry’s key players, stating deceptive business practices. The California-based lender agrees to do some more loan modifications and not to foreclose upon up to 2,200 loans without notifying the attorney general’s office and seeking court approval in certain circumstances.     Attorney Generals continue to hold the lender liable for this nightmare they have caused so many people.  

Bank of America agreed to spend $8.4 billion to lower the interest rates or loan balances of nearly 400,000 Countrywide customers with subprime loans or payment option ARMs.   The number one lender in the Country is now responsible for giving out loans that the borrowers could not afford  

Although there has been in increase in lending disputes, there aren’t as many lending lawsuits as expected, considering the how big subprime loans were during the housing boom. These suits are expensive and difficult to win.   Said cases could take anywhere from months to years to resolve.  

This lending crisis has left many people in a bind.   Seeking proper legal help is the only way to insure you get out if it in one piece.  

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FHA loans fell off the map for a few years after the rise in home sales and prices back, but in 2005, when the market took a slide down, they made a return and have been around helping prospective buyers purchase homes ever since.     When the value of homes in the 1990™s were at an all time high, they exceeded the loan limits, making them less popular.  

How does an FHA Loan work?   Just remember that it does not guarantee approval for a loan, it is an insurance to your loan.   This insurance serves as a cushion for lenders when they face the risk of a buyer putting down less than 20 percent on the purchase of a new home.   The lender can only do certain things with the loan, without approval from the FHA.   They can take loan applications, process the loan, and underwrite and close the loan.  

The loan does hold limits on how much they can insure the loan for.   But, as of January 1, 2009, the maximum mortgage limit in higher priced areas is 115% of local median prices, not to exceed $625,500. The maximum conforming loan limit is $417,000 for single-family residences nationwide.   Depending on your area, your limits may be different, this is something your lender can help you with.

FHA loans are a good option for you if your credit is less than perfect, or you don™t have as much money saved as you would like.   Don™t let those factors stop you from moving forward and starting your life in your new home.   These loans give you options even when you have had financial hardship in the past.   You can qualify for an this loan 2-3 years after you have filed for bankruptcy, as long as your credit history has been good since the bankruptcy was discharged,   if you have gone through foreclosure, but have maintained excellent credit since the last date of your foreclosure.   If this is the case, check all credit reports before applying for any type of loan, to insure that you will be qualified.

This rate, compared to a conventional, adjustable rate loan, hardly adjusts, which is good for people who don™t have as much money as someone applying for a conventional loan, mortgage insurance is included in the FHA loan, instead of being paid out of the borrowers pocket.   Borrowers are allowed to finance 96.5% of the purchase price, and if you combine this with other loans, you may not have to pay anything out of pocket for the down payment.   Which in turn will save you more money to pay the mortgage on your new home.

If you are in the market for a new home, but feel you don™t have the means to qualify for a conventional loan, speak with your lender and realtor today about how you can qualify for an FHA loan, and if it is the best option for you.   Don™t let your past mistakes hold you back from having the home of your dreams, always remember you have alternative options.  

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When buying or selling your home, it is very important that you pick the right agent for your needs.   You always want to make sure your agent has your best interest at heart and can find or sell your home in a timely manner, with as less stress on you as possible.  

One way to start looking for a good agent is to ask your friends or family to refer you to one that they have used in the past.   When you ask the people you trust, you are almost guaranteed a good transaction, after all your friends and family are willing to refer their business so the agent must have done something right.   This also ensures the agents quality of work.   A good agent puts customer satisfaction first.  

With all the technology and online advertising we have these days, you can easily turn to the web.   There a hundreds of thousands of agents who advertise their services and listings on the web, unlike referrals, this does not insure quality, but you can always pick a handful and interview them to see if they are a good fit for you.  

If you are in the market to buy, you may want to consider going to local open houses in the areas you are considering buying in.   A good agent will get out there and sit an open house in hopes of a buyer like you coming in.   This also gives you an opportunity to see how the agent acts in a professional working environment.   You can also do this by taking numbers from listing signs in your neighborhood.    

After you have picked a few agents that spark your interest, you will want to interview them.   Have them come to your home, and ask them some simple questions to see the two of you work together.  

First you want to ask them how long they have been in the business.   Experience is key in getting your home sold or in purchasing the one of your dreams.   Make sure they have sufficient experience to help you with your needs.   Ask the agent how they plan on marketing your home.   If youre selling your home, you want to ask them exactly how they plan on selling your home, what advertising they will use and where they will advertise?   Will they send mailers? Do they have a sample of the flyer they are planning on using in your home.   And most importantly, do they market online.   You will also want to know how much they charge, and if they have references.   If you are a buyer you want to ask them the agent the ways they will search for the homes, how many homes you will have to see before you find the one you love.   Make sure that they are working hard to find you the perfect home at the perfect price.  

Once you have decided on an agent, either for buying or selling, you want to make sure to read all documents that are given to you before signing. This is very, very important.   There are so many documents that come with the purchase or sale of a home, that you want to make sure you are clear on all the legalities™ and fine print, in case anything should arise in the future.   If you don™t feel comfortable with something you see, do not sign anything and speak to an attorney should you have any other questions.  

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Are you looking into flipping a house, but not sure how to do it the right way?   Flipping a house, also known as buying a fixer or run-down property below market price, somehow increasing its value, and in turn re-selling it for a profit. If you do your homework, you can possibly make $50,000 or more per flip, in less than 90 days.

In order to flip the house the right way, you will first want to make sure you have excellent credit.   Doing so before you find a house to purchase will save you a lot of valuable time.   When flipping a house, in most cases you will have to borrow more money than you would on a normal purchase, because you will not be paying a mortgage on the flip.   After you have looked over your credit, it is now time to find a Realtor to help you in the search of and purchase of your new investment property.   In today™s market there are plenty of foesclosures and short sales on the market that it shouldn™t take too long to find something worth investing in.   The Realtor will help you with placing and offer and getting approved for loan.   Before diving into flipping a home, make sure it is a good market to do so.   Your Realtor can assist you in this as well.

When looking for a home to flip, you want to preferably find one that is a fixer, one that needs work.   Light work, or heavy work it really up to you.   It will all depend on home much time and money you have to work with.   The lighter the fixer, the faster turn around time you will have, and initially spending less money.   Also, looking for a property that is being foreclsoed or short sold by the bank, is a good idea.   These homes are being sold well below market value and could usually use a little TLC.  

Once you have found the home of your choice, you will want to obtain a loan from the bank.   You will want to get a loan that is well over the amount of the asking proce of the property, to ensure you have enough money to work with to make necessary repairs on the home.   Lastly you will want to make a reasonable offer on the property and purchase.

Once you are the proud owner, begin to repair the house, and get it ready for re-sale.   A key thing, is to save as much money as possible on labor.   Find family or friends who are willing to help with this process.   When all repairs are made on the house, you will then be ready to stage it.   A home always shows better when staged with a little bit of furniture and décor.   This gives prosepcts a better idea of what the home will look like when they move in, making it more desireable to them, in turn flipping the home quicker.

Once the home is staged, it is ready to show.   Speak with your agent about the different ways they plan on driving clients to the home.   When you receive a buyer, they will submit a reasonable offer, and you and your agent will work together to see if you are getting the most for your home.   You are going to want to make sure that the price of the home and the offer are well above the amount that you paid for the home.   This will guarentee you a high profit, for all the time and labor you invested in the home.  

When the home sells, the first thing you want to do is, payoff the loan and any other debt you have incured during the time of the flip.   You also want to make sure that you report any profit you made to the IRS to avoid any penalty in the future.

Flipping houses is always a very risky thing.   If you don™t floow the above steps properly or consult your Real Estate Agent, you could petentially lose hundreds or even thousands of dollars.   If you feel un easy for any reason, there are many house flipping work shops you can attend prior to making your big investment.   If you flip your home the right way, you can be making a big investment toward your future and that of your family.  
 
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Are you thinking of selling your home?   As homeowners we always think that we can get gold for our homes once we sell them.   Then the Real Estate agent comes in and tells us different.   Before placing your home on the market, you should be aware that there are many ways to increase the current value of your home, for very little money and not a lot of hard labor like that of a full remodel, ensuring that you will get the most for your precious home.

You can start with simple things such as, tidy up your yard. Get rid of trash and clutter in the yard.   Clean up all debrise, and keep your lawn in good condition and mow it.   Even the fine lttle details should be attended to, such as using a weed whacker to get in the tight corners and along the edges of sidewalks and the house. Trim the hedges, get rid of weeds, and mulch the flower beds. If your yard is smaller than normal, you can simply plant some flowers or install some landscaping appropriate for your home and climate.

Clutter in the home and mess can be a big turn off to potential buyers. You want to make sure to get rid of clutter and unnecessary mess around the house and get it as organized as possible.   A nice, tidy house will seem larger and more elegant.

Instead of painting walls, you can always clean and wash them. It™s a lot cheaper to wash walls or siding than to repaint or replace siding, and many times a good cleaning will make your home™s finishes look good as new. Pressure-wash your home™s exterior, and wash interior walls. If painting is absolutely necessary, you can do it yourself relatively cheaply on interior walls

Over time, the sun fades the colors from your blinds and curtains, so new ones will make a better impression than old ones. Blinds and curtains are relativly inexpensive and putting up new ones will help the sale of the home.

Cleaning the carpet will make them look like new, giving the home a fresh, clean feeling.   You can clean the carpets yourself by renting a steamer and claening the whole house for just the price of the machine, rahter then labor also.

Installing newer switches throughout the home can also give it a very modern feel.   New style switches can be easily installed using the wires already running to the old switches.   New outlets look nice, and give the impression that the electrical wiring in the house is newer than it really is. Dimmer switches are especially desirable,

Refinishing your kitchen cabinets is something to make the home look less outdate. Outdated or worn cabinets can bring the whole kitchen down, but refinishing them is relatively cheap and easy to do. If you have a dark or small kitchen, make it look larger and brighter by using a lighter finish on the cabinets.

As long as you shop smart, and save as much as possible on labor, you can increase the value of your home immensly.   Doing all these repairs will also help in the time it takes to sell your property.   You always want to make sure you get the most for your buck.  

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If you are a current homeowner in the Hollywood Hills, trying to sell a multi-million dollar home, you are probably wondering how you can get top dollar in today™s Market.   It was only a few short years ago that a seller could get top dollar for their home.   In today™s market it™s a little tougher to get more than 7 figures on your home, due to the dropping of prices all over the city.  

Today in The Hollywood Hills, we have close to triple the amount of seven-figure homes than we did in lets say in 1999.   However, the number of buyers has stayed the same.   The inventory of Multi-Million Dollar homes is so large, that buyers have a bigger selection, of these homes as well cheaper homes, therefore over looking the Multi-million dollar ones.  
 
Given the current multimillion-dollar home-selling climate in the Hollywood Hills, sellers need to be far more creative and patient while seeking to sell their property. If you are planning on selling your multimillion-dollar home, keeping some of the following pointers in mind might save you time, money and aggravation in the long run.

The first step to getting top dollar for your multi-million dollar home, is to hire a Real Estate Agent.   Selling your home on your own, does not ensure that you will get top dollar for your home.   An agent will work with you, in getting the most for your home.   They will list the house at the current market value, something you would most likely not do in selling it on your own.   An agent will then market your home in the MLS service, allowing hundreds of thousands of agents to see your listing and possibly show it to prospective buyers.   The agent will also market your home with mailers, newspaper ads, online services to advertise to the masses and any other way they feel to be an effective marketing tool for your home.

Your agent will be willing to offer advice, on what you need to do to stage your home so that it’s market ready. Be prepared to make light repairs such as painting, replacing carpeting or fix anything that is not working properly. Your agent may also recommend removing clutter, clean up landscaping or rearrange furniture. Removing valuable or rare items may also be something they suggest.. You want the buyer to remember your home. You most likely will have competition from other sellers, so your home needs to stand out.

With today™s technology, a printed flyer is very crucial and easy for your agent to make for potential buyers and their agent to see.   They should include a picture of the home as well as the most important information on the home.   They can also produce CD™s for the buyers to take with them and review.   Most Real Estate agents today, have a personal website in which they can place your property on, and advertise to anyone who visits their site.   They can provide virtual tours of the home, as well as pictures to give the and even sound if desired.

If your neighbors or other homeowners in the area are also trying to sell, see what they are doing. While location and price are the two most recognized deciding factors, you want to   know what your competitors are offering as far as bonuses to the sale, unique marketing ideas and features of their homes. Be honest with yourself. Is your house really the best one in the area? If so, price it that way. If not, then price it right and sell it before your neighbor does. High pricing on a home, will usually hold it up from selling like the others in the area are.

Downturns in the market are like long-distance races; you speed up and slow down from time to time to take best advantage of the course. While a local market may be slowed at a given time, don™t fear this because history continues to tell us that it will improve. If you are under the gun to get your home sold, then you need to be far more flexible on the price. The more time you have, the longer you can hold out for your price.   Price it right, stay in tune with the market and be patient. There is a buyer for every property.

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During these hard financial times, many of us are faced with the tough decision of having to file for bankruptcy.   If you find yourself in the situation where you have filed for bankruptcy and it has now be dismissed, you are on the road to bankruptcy recovery.   There are some tips you can us to help you stay on the right path, and ensure you do not let your self hit the financial bottom again.  

Now that your on the road to bankruptcy recovery, free yourself from the guilt that you have been burdening on yourself through, because facing the problem and taking care of it were the first step.   First off you want to have a plan, a budget.   You need to have self discipline during this time, and not let yourself get into over spending or spending money that you really don™t have.   If it was an unexpected incident that caused your financial downfall, have a back up plan.   Make a savings account, put money away for a rainy day in case you lose your job for example.   Make sure that you will be financially ok to pay bills even if you are unemployed.  

Keep your payments consistent.   The creditors will be watching you to make sure you are paying ALL bills on time every month. They also want to see stability in your life.   They want to see that you have been at current jobs or places of residents for at least a few years while you are on the road to recovery.   Opening checking and savings accounts is also a good idea.   Keep the minimum amount in there at all times, creditors will be watching to see how you are spending your money. If you are able to get a credit card, using it wisely can actually help you.   It will only help you though, if you use it and pay the minimum amount on time, or more then the minimum amount.   Again this shows creditors that you are being consistent and on time with your payments.  

You always want to consider other expenses, that only come up from time to time.   Like your car breaking down, insurance payments, unexpected money being paid out.   Saving money, ties into this.   If you have emergency money put away, you can avoid getting yourself in another financial hole.   If you think you may want to purchase a house in the future, even though it will take you a few years to be able to qualify, don™t let that stop you from preparing for the future.   Putting money away will only help you and not hurt you.    

Also, you want to ask yourself what would happen if you suddenly lost your job, or if you became ill.   You have to consider everything into your expenses.   Have separate savings for unexpected events, for your future.   Do whatever you can to insure that you will never go down the road of bankruptcy again.  

Most people who are recovering from bankruptcy, come to a full recovery in 3-5 years.   In order to do that, you must have a ton of self-discipline and stay positive.   It probably took you a lot longer to get in financial trouble than it will be to get out of it.   You are on the right path, stay on it and you will be financially free from here on out.

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With the current economic downfall, foreclosures are flooding the Real Estate Market.   Not a good thing for homeowners, but leaves excellent opportunities for investors.   If you are an investor looking to build equity, the purchase of a foreclosure would work wonders for you, if you don™t mind getting your hands dirty.   We have provided some tips on how to purchase a Foreclosure before diving into the foreclosure pool.    

When purchasing a foreclosure, you are usually going to pay 40 to 60 percent less the market value of the home.   If you really do the foot work and find the right property, you can save a ton of money on your purchase in the end.   If you are new to the investment world, there are a few things you need to know before taking the plunge.   If you™re looking fixer to repair and flip, now is not the time.   However, if you™re in a position to buy and hold, and rent your property or sit on it until the real estate recession turns around, the market the perfect time for you to invest.   You always want to go into an investment with long term goals and ideas.   You have to spend your money wisely, and make sure you can afford a mortgage even if you cant get it rented, or if you become unemployed.    

A low real estate market, shows an investor who does it smart, a excellent long term outcome.   If you go into it with all the knowledge you need, you could profit big in the long run.  

It can be very tricky to negotiate the sale of a foreclosure.   And without extensive research, you can find yourself in trouble.   You may end up purchasing something with liens on it, and in turn that becomes your responsibility because you are now the homeowner of the said property.   Make sure this is information that is provided to you before you even consider writing an offer.   In order to insure that you are not making the wrong purchase, it is always a good idea to hire a contractor to come in and take an extensive look at the property before you sign anything.   Also speaking with a Realtor, about what the current market rates are, as well as what areas have a high rent ratio.   The Realtor may suggest not purchasing anything unless it is at a 30 percent discounted rate, because you have to consider how much repairs on the home are going to run you. That may hurt your profit in the end.  

Now you may be thinking that you don™t want to profit from someone else™s misfortune, but your purchase of the foreclosure is reducing the amount of homes that are available on the market, thus helping to stabilize the current real estate market, in turn stimulating the economy.  

Do all your homework before purchasing that great investment.   Talk with your Real Estate Agent today, and if you currently have your eye on something have them help you every step of the way, to ensure the best investment for your future.

http://inhomesforsale.net

When deciding to list your house, I am sure you do not want your house to sit on the market for months at a time.   There are a few steps you can take to ensure selling your home fast.  

First you will want to select a Real Estate Agent to help you in the sale of your home.   This will ultimately speed up the process and lessen the stress that you face as a seller.   Selling your home is never a walk in the park, but with the support of an agent can be made much easier on your part.  

The number one thing to do, is to make any major repairs that you know the house needs.   This is one major thing that the buyers look for and you want to make sure that your home is showing better than other ones that may be for sale in your neighborhood.  

After you have made the said repairs, the most crucial thing to consider is the price.   A home being over priced is the number one reason it sits on the market with very few showings, if any.   Buyers realistically do not care how much œyou think the house is worth.   Each homeowner thinks their house is worth gold, but the buyer may not see it that way, because they do not yet have the attachment to the home like you do.   When you hire a licensed Realtor to represent you, they will do price comparables with other homes in your area.   This will ensure you get the best, most motivated buyers out there.   If you price it too high, you most likely will end up having to reduce the price if it doesn™t get any showings or offers in a certain amount of time.  

Next you want to get rid of unnecessary clutter in the house.   When a buyer is brought into a home and they see a ton of clutter or mess, they cannot see the potential of the home, because they are so distracted by the mess.   You have to remember you are selling the house, not the items in the house.  

You must also remember to let go of any emotional attachment you have to the home.   You™re planning on moving anyway, so there is no reason to risk losing a sale simply because you do not like what the buyer is offering or even critiquing about the home.   A lot of time this can scare a potential buyer away or have them back out of the deal.   If a buyers asks to include an item in your home in the sale, do it.   Something as small as that can determine the buyers interest.   And in most cases when you move you wont use the said item, nor will you miss it once you are in your new home.  

It is very important to remember that the price is number one on your list of concerns.   Double check with your agent that you are listing the property for what others are being sold for in the area.   Otherwise your house will sit and no one will purchase it.   Talk to your agent today.

http://inhomes.org

Are you worried that you may be facing foreclosure and not sure what to do?   Keep in mind that lenders do not like to foreclose on mortgages.   They will end up losing more money in the end, because of all the legal processing and such.   Lenders are always willing to work with the borrower, just make sure you stay in constant contact with the lender, letting them know of your current situation.   Do not ignore them or their phone calls and letters.   If you are not sure of what to say or how to approach it, there are foreclosure assistance programs out there to walk you through the process and make it as smooth for you as possible.

The lender™s willingness to help with current problems will depend heavily on past payment records. If you , the owner for has always made your payments on time have no serious defaults, the lender will be more receptive than if you are always late on your payment.   If you know that you are going to be facing financial hardship in the near future contact your lender as soon as you become aware of the issue, this will also make them more willing to work with you.

Once you contact the lender, expect them to ask you all about your financial situation, expenses, and such.   Have all of this information handy prior to contacting your lender. The more information you provide, the better off you will be.  

Remember, the lender wants to help you, the last thing they want is to foreclose your home.   Depending on the length of your situation, the lender will have many different options for you to avoid foreclosure.   If your situation is going to end within 60 days, talk to your lender about granting you temporary indulgence.   Lets say you have an insurance settlement, or big amount of money coming in, be ready to provide proof of all of this to the lender in order to receive your indulgence.

Those of you who are suffering a temporary loss of income, if you are able to prove that the income has returned to its previous level may be able to work out a œrepayment plan. This plan will allow mortgage payments to be made as scheduled,   along with an additional amount that will end the delinquency in no more than 12 to 24 months.   Repayment plans are probably the most frequently used type of agreement.

In some cases, it may be impossible to make any payments at all for some time. For those of you who have a good record with the lender, a œforbearance plan will allow them to suspend payments or make reduced payments for a specified length of time. In most cases the length of the plan will not exceed 18 months and will stipulate commencement of foreclosure action if the borrower defaults on the agreement.

These plans are used as a last resort to help the homeowner save their home.   The lender will not consider any of these options if the borrower’s payment record is poor.

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