Short Sale, A Great Option!

January 23, 2010 · Shokoofeh Nowbakht · 3 Comments

short sale I have talked to many home owners who are late on their mortgage payments, who are struggling to pay even their everyday expenses. Some have not paid their mortgage in over 6 months. Unfortunately, this is happening more often these days. My advice is, of course, try to modify your loan and save your home. Homeowners have to qualify for the modified loan plan. What if they can’t? What if they can’t even make the mortgage payments on the new lower interest rate? So, why not try to short sale the house? Lenders are becoming more understanding of the short sale situations. They are easier to deal with and get an approval on a short sale. Homeowners will have less effect on their credit score if they do a short sale rather than go through bankruptcy or foreclosure. A realtor will be able to assist homeowners with the short sale process.
Good Luck!

Shokoofeh Nowbakht, Realtor
Prudential California Realty
www.shokoo.com

An Open Letter to Potential Home Buyers and Fence Sitters

January 19, 2010 · Lee Ginsburg · 2 Comments

Dear Home Buyer and Fence Sitter,

The window of opportunity is closing. Let me explain my thoughts. Prices in the Bay Area are already inching up, same with interest rates. The time to receive the Federal Tax Credit of $8000 or $6500 is rapidly approaching. (Must be in contract by April 30, 2010) FHA is talking about increasing the minimum required down payment and or increasing the cost of required mortgage insurance.

You can purchase a home today and your costs will be fixed for the next 30 years. What else can you buy and maintain the same cost for the next 30 years? Rents will continually go up. You are at the Landlords mercy. It is time to get off the fence. The first step is to get pre-approved. This will tell you what the bank will loan you. There are many loan programs out there. I could refer you to someone if you would like. The pre-approval process is easy, is no cost and with no obligation. If you don’t do it now you will never know.

You do not need a large down payment. You can purchase a home with only 3.5%. Yes you need mortgage insurance. I don’t like mortgage insurance but if that is the only way to own a home, then go for it. Mortgage insurance will go away once you have 20% equity. Economists think values will increase substantially in the next 3-5 years and that will more than make up for the mortgage insurance. Some people tell me they want to save for a larger down payment. That bothers me because from my experience most people cannot save as much as prices increase. Read more

The First Time Home Buyer Tax Credit is Extended!

November 11, 2009 · Kathy Wall · 2 Comments

The $8,000 first time home buyer tax credit that was scheduled to be canceled as of November 30th has been extended, which is absolutely wonderful news for all of those potential home buyers who weren’t able to find their new homes before the deadline. The new credit will be in effect until April 30, 2010. Please note that home buyers will need to be in contract by that date, but will have up until July 1, 2010 to close the escrow (that’s when you actually own the home). And, the new credit is even better than the previous one for the following reasons:

…The income limits have been raised so that now more people will qualify for the credit. Previously, if you were a single person, you could only earn up to $75,000 and, as a married couple you could only earn $150,000. Now, single people will still qualify if they make up to $125,000 and married couples will be able to receive it if they make up to $225,000. And, those earning over these amounts may still qualify a credit, but for a lesser amount. Read more

Lower Rates Aren’t In The Bag

June 24, 2009 · Dean Rizzi · 4 Comments

Last week’s drop in mortgage rates was a welcome relief, and you would think that more relief should be forthcoming. After all, inflation appears to be a dead issue, given recent data on producer and consumer prices. Inflation and interest rates are highly correlated: When one falls, the other usually falls in tandem.

But there is more to the story than inflation. All interest rates are determined relative to risk-free market interest rates, with short-term Treasury bills serving as a proxy. But most interest rates are not risk-free. Mortgages rates are certainly not risk-free, which is why they are higher than Treasury bill rates. What’s more, mortgage rates are heavily influenced by rates on mortgage-backed securities (MBS). MBS rates, in turn, are heavily influenced by yields on Treasury bills, notes, and bonds.

And there is the rub. Treasury securities prices tumbled last week after Read more

The Whole Picture

June 16, 2009 · Dean Rizzi · 6 Comments

Yes, mortgages rates have risen substantially over the past three weeks, and we can’t be sure when, or even if, they will come down. Mortgage rates are important, to be sure, but they are only part of the equation. Income and relative home prices matter too. On that front, average hourly wages continue to show incremental increases, while home prices continue to stabilize, and even rise, in many parts of the country.

Distinctions matter as well. Much has been made of the fact that lower interest rates mean more money in the pockets of borrowers. More money in the pockets of borrowers, in turn, means more money to spend to stimulate the economy. But let’s not forget that it’s a two-way street: The lender on the other end receives less income; thus, he has less income to spend. In other words, refinances with no equity extraction are really a wash in terms of aggregate demand for goods and services. Read more

My Happy First Time Home Buyers

March 22, 2009 · Shokoofeh Nowbakht · 4 Comments

I went to visit my clients who just bought their first home 2 weeks ago. They had bought new dining set, living room set, and a flat screen TV over the fireplace. They were very happy and their little toddler boy had the greatest time running around the house, climbing over the couch and the dining table. He hugged me so many times and blew kisses at me. I enjoyed watching them. We were so used to meeting several times every week especially since the loan was getting approved and funded, that it was hard to say goodbye.

I’m going to miss not seeing them as often.