Sacramento home buyers are competing with investors who are primed with either all cash offers, quite closing dates and no contingencies for home inspection. The banks will go for these offers in a heart beat and leave the others dangling.

It’s imperative that all home buyers have their ducks in a row. If you are obtaining a loan, make sure you have your lender approval letter, copies of your bank statement proving where your down payment is coming from and put down a sizable amount.

I still receive calls from home buyers who have not seen a Lender and think it’s not a problem getting a loan.  Let me tell ya, it’s hard to get a loan these days.  I haven’t seen one of my home buyers who have not had to jump through hoops to get a loan.  They have had excellent credit but the banks are difficult and the underwriters are nearly impossible.  Don’t take getting a loan for granted.  Do your homework and get a Lender letter of approval BEFORE looking at homes for sale. 

Experienced Realtor’s ® work with experienced Lenders so do talk to your Realtor ® and get a referral to a Lender who can actually get a loan for you.  Can’t begin to tell you how many times a home buyer has come to me with their own Lender only to find out that their Lender couldn’t get the job done and the Lender I work with has to save the day at the last minute!  Do yourself a favor and ask your Realtor ® for a Lender referral.

If the house or condo is one that you have been watching for sometime on MLS, and you have seen the price go down remember so have other buyers. If the neighborhood is one that is sought after. you won’t be the only one making an offer.

Short Sales take anywhere from two weeks to six months to be approved so if you are a toast watcher, either change your attitude or don’t get involved with Short Sales. Many of the listing agents have sellers who require that your good faith deposit check be sent to Title and cashed before the seller accepts your offer and your offer is sent to the bank for approval. If that bothers you, then that house is not for you. I think you will see more Short Sale agents requiring this as time goes on.

With the $8,000 Federal tax credit for first time home buyers and the $6,500 tax credit for repeat buyers we are seeing quite a few home buyers in the real estate market who realize they will pay less each month to own their own home rather than pay rent.

Recently, I heard that Governor Arnold Schwarzenegger was proposing a $10,000 tax credit for all buyers. This will certainly open up the market for even more home buyers.

Make sure you are working with an experienced Realtor ® and you have your own representation. Home buyers do not pay to be represented. The State of California actually requires each home buyer to sign an Agency Disclosure to make sure that you, as a home buyer understand the difference between Single Agency and Dual Agency. It is never a good idea for a home buyer to be represented by a builder or by a listing agent. The agent at the home builder site represents the builder, not you. And the listing agent represents the seller, not you.

Remember, real estate is LOCAL.  Just because someone on the news talks about real estate, or your friend in Texas talks about real estate doesn’t mean that is the way it is here in Sacramento or in a neighborhood in Roseville or Elk Grove.  Talk to your Realtor ® and find out the scoop for the area and type of home or condo you are looking for before you buy.

Happy house hunting with your eyes wide open!

Related Home Buyer Tip Articles:

What Does Short Sale Mean

You Can’t Be A Toast watcher and Buy a Short Sale

Sacramento Home Buyer Tip

Sacramento Home Buyers Buying Homes Be Sure to Read This

When you find it difficult to pay your mortgage payment, a Short Sale is an alternative to bankruptcy or foreclosure and of course if you can qualify for a loan modification that could possibly be your best viable solution.  

Short Sales are not short.  It’s a long process but as real estate professionals we try very hard to make it as stress-free as possible.

Not all homeowners qualify for a Short Sale.  You need to ask yourself these questions in order to determine if you might qualify.

1. You owe more on your mortgage than what the house is valued at in today’s real estate market
2. You are having trouble paying your mortgage payment
3. You have no or little assets in order to pay off the mortgage
4. You have a hardship. 

Examples of what a hardship is: 

• unemployment
•  divorce
•  medical
• bankruptcy
• death

As a CDPE, I go over all these things with you and ask you to provide receipts of bank statement,  your 1099 and many more receipts for the bank to determine if they feel you are qualified for a Short Sale.

It is always a good idea to speak with an attorney before attempting a Short Sale since a real estate agent cannot give legal advice.  You need to be aware of any tax implications and see what is best for your particular situation.

Other Related Videos and Articles:

Short Sales Are Not Short

Can’t Pay Your House Payment?

Sacramento Short Sales Are the New REO’s

If you are thinking about remodeling and putting your house for sale here are a few of the real estate trends for 2010 that at the end of  the day will help sell your home.

Traditional is the New Contemporary in Kitchens

Simple Shaker syle is on the upswing. This means simplicity with no oranate moldings or glistening hardware.  Be sure to take a look at few examples of Shaker Kitchens.  White and off white is the color choice but brown, beige and bone are also a good color.

Cherry cabinets are still the winner followed by maple and then alder.  Natural and painted white are stillin but light natural and distressed finishes are out.

Ceramic flooring porcelain tile and natural stone tile are in but hardwood flooring still dominates the choice of flooring.  Granite is still the number 1 choice with quartz in strict pursuit.  Ceramic, porcelain tile and glass are the backsplash of choice for 2010.

If you don’t have a pull out faucet in the kitchen be sure to get one.  Brushed nickel, stainless steel and satin nickel are in biggest demand wih pot filler faucets  becoming a must for many home kitchens.

Side by side refrigerators are still big  with freezer bottoms being the most popular.  Undercounter refrigetator drawers are becoming the new rage along with undercounter wine refrigerators.

If you stil have a range for cooking seems your ok but the cooktop with wall ovens is coming  back strong.  Gas is still the popular choice with induction cooking coming on strong due to its energy efficiency.

The new dishwasher is in a drawer and great for small loads which again saves in electricity and water.

The Old is New Again in Bathrooms

Traditional is the big winner and the color palate is beiges, bones, white, off white and brown.

Ceramiic and porcelain tile are in for flooring with natural stone.  Vanity tops are big with granite being the best choice  and then quartz and marble.

Fixtures are popular in white with undermount sink being the big winner followed by integrated sink tops, drop in sinks, vessel sinks and pedestal sinks in that order.

Brushed Nickel is the faucet choice for 2010.

Hope that helps the Sacramento home sellers who are considering remodeling their kitchens and baths to make some good choices that will help you when selling your house.

Always give a Realtor ® a call and find out what home buyers are looking for in a home when you are considering a remodel and home sale.

Other Related Remodel Articles and Tips:

Nifty Cost Effective 2010 Home Remodel Ideas

Remodeling A Bank Owned Home

Remodel or Move

Today is the day  FHA requires a condominium to be on their FHA approved list.  If the condo is not on the list the loan process will need to go through a review process that can take from 4-6 weeks.  It is getting harder and harder for home buyers to get loans and harder for sellers to sell.

With an FHA loan the homebuyer is only required to put down a 3.5% as a down payment whereas if the home buyer has to get a conventional loan to buy a condo they must put down 10-20%.  So you can see how important it is for homeowner associations to fill out the necessary paperwork with HUD in order to get their complex FHA approved.

This could have a major impact on both condo buyers and condo sellers. Those condo buyers who are already in the process of purchasing and in escrow need not worry but as of February 1, 2010 all new FHA condo purchases must be on the FHA approved condo list.

Check to see if the condo you are looking at is on the approved condominium FHA list.  (Wouldn’t  you know, it’s a government website  so it only works on  Monday-Friday 8:00 am to 9:00 pm – can you believe it?)!

If you own a condominium, I would suggest that you speak with your HOA and get the process rolling if your condominium complex is not on the FHA approved list.  You never know when you might want to sell your condo.  Best to be prepared!

Other FHA articles:

90 Day Flip Rule Changed Feb. 1 2010

This Sacramento Realtor Doesn’t Agree With HUD

New Facts About Home Buyer Tax Credit

Whitney Oaks is an exclusive master-planned community that was designed with nine gated neighborhoods around a golf course and surrounded by open space.  Whitney Oaks has more than 1, 000 acres with a public golf course which is outside the gates, three recreational facilities and beautiful open. spaces.  With an 18 hole golf course designed by Johnny Miller, a wildlife habitat and beautiful vistas surrounded by some outstanding custom homes this is truly a remarkable area to consider when thinking about real estate amd where to live in Rocklin,  CA. 

Whether you are looking to purchase  an upscale custom estate or an upscale cluster home, Whitney Oaks has something for everyone.  You will find the custom homes built along Clubhouse Drive.  Home prices range from $400,000’s to millions. Semi custom homes are located with views of the golf course and open spaces.  A few of the builders who built in Whitney Oaks included, Lennar, Pulte and Centex  along with a variety of custom builders. There are a few lots left to build on so just give me a call…either way, I’m here to help you.

Springfield is an adult community located in the Whitney Oaks master planned community. Home buyers love Whitney Oaks and it is always a pleasure to sell homes in Whitney Oaks.

The schools are ranked in the top 10% nationwide for academics and are, Valley View, Granite Oaks and Rocklin High.

If Whitney Oaks sounds like the neighborhood you envisioned to live in, give me a call.

Now, You CAN’T Buy That House may just NOT apply at least for 1 year!

HUD has agreed to waive the 90 day flip rule temporarily for one year.

There are a few conditions, though:

• All transactions must be at least arms length
• If the seller’s sales price is 20% or more above what they paid for the property, additional appraisals/home inspections will be required.

Interpretive policies of lenders  are yet to be implemented so I’m sure there will be more as time develops and lenders determine if they want to accept HUDs new ruing.

Some agents think this only applies to FHA loans  but it also applied to many conventional loans,  as well.

Click to read the original HUD Ruling on Buying Flipped Property.

Related Articles:

Sacramento Will Become Real Estate Flippers

If You Are A Home buyer, Do You Know the 90 Day Rule?

No, You Can’t Buy That House!

This really is nothing new, it has always been in effect.  The Lender has always had to provide a Good Faith Estimate however now the Lender must give even more accurate numbers to the home buyer about all the cost of buying a house.

If those numbers are off on the Good Faith Estimate, this will cause a delay in the closing of the house or condo. And yet, the numbers the Lender submits are numbers that are obtained from several different sources.  Will this really help?  Will this eliminate the questionable lender?  I doubt it.  Good lender always provided them.

My problem with this graph in the home buyer’s booklet  is that it really misrepresents the process of the time-line in purchasing property.   Here are the misuse of terms and confusion that I see in the graph above.

1. Determine what you can afford – since the word “lender” or “bank” is not visible, the reader is left to their own imagination on what they can afford.  Not exactly the home buyer I would want to work with nor as a listing agent would I want to waste my seller’s time viewing their offer .
2. Find a real estate agent.  That’s a good step but where is the prequalification letter from the lender or bank? 
3. Find a house and negotiate contract terms.  I sure as heck hope not.  Whose qualified this buyer?  Where is the Lender letter? I wouldn’t submit a contract to a seller from a home buyer who is not pre approved for a loan. Can’t think of any Realtor who would want to negotiate any offer with a home buyer who is pre approved.
4. Shop for your loan – compare multiple Good Faith Estimates.  I sure hope that you are not shopping for a loan after the seller has accepted your offer.  I would hope that your lender who  pre approved you is now working on your loan so we can close on time as per the contract.
5. Choose best loan for you.  This is way too late in the process if you plan to go by the contract.

As a Sacramento Real Estate Broker, I have some issues with this booklet the Feds have published.  Time to go back to the drawing board and revise this before too many home buyers believe what you have published.  Sometimes, I think people writing booklets and making laws  have little knowledge of what the real process entails.

Click for a copy of  the HUD (Housing and Urban Development) booklet… Read with care…

Other Articles of Interest:

New Facts About Home Buyer Tax Credit

If  You Are A Home Buyer, Do You Know the 90 Day Rule?

HUD Ruling on Buying Flipped Property

Yes, this Sacramento Realtor was out showing a home to a home buyer who is a doctor and this was his available time slot to view homes for sale in Natomas.

Thought I would give my two cents for 2010 real estate predictions. 

This will be the year of the tortoise coming in slowly,  but surely. Real Estate is making a comeback with what most predict as a minimum 3% increase in sales price per year.  The luxury home market will probably find itself in world of hurt with many higher end homes in Short Sale and foeclosure.

Are these some of your burning questions about the future of real estate for this year?

• Will the banks release the “shadow inventory?”
• Will interest rates go up?
• Will FHA require 5% as a down Payment?
• Will the home buyer tax credit end?

Do your real estate predictions for 2010 agree or disagree with Sacramento Short Sale Realtor, Gena Riede ?

Other Related Articles:

A Look At Real Estate in 2010

National Real Estate Prediction

California Real Estate Market Predictions

Banks committing fraud? Does it surprise me?  Nope!

Last week Diana Olick of CNBC wrote a compelling story, Big Banks Accused of Short Sale Fraud

I’ve been hearing for sometime now that banks have been asking for money on the side when a second mortgage applies on Short Sales.  Obviously, being kept OFF the HUD (Settlement Statement) is what makes this housing fraud.

Are the agents complying with this request/demand from the banks,  stupid, guilty of fraud or just trying to help the Short Sale seller? 

I would say all three are more than likely applicable.  For this very reason these agents don’t want to step forward and be accounted for nor do they want to be in a position where the banks stop sending them homes to sale and/or stop accepting their Short Sale offers.  Therefore, the silence or shall we say, not willing to step up and be accounted for in Diana Olick’s CNBC’s article.

For those who are not aware,  all money transactions MUST show on the HUD statement. If they don’t show on the HUD statement than this is blantant fraud.  This is a big no, no! And anyone with a license knows or should know this.

For those Realtors ® who have walked away from these blood sucking banks and avoided paying under the table, congratulations for doing the right thing!

Some  Short Sale banks (mortgage holders) are refusing to accept a Short Sale if the agent(s), seller or buyer does not pay additional money outside of escrow.   The second lien holder wants more of a payoff than the 1st lien holder is willing to share with them so they ask the parties involved to line their pockets. These banks to prove a point will force the property into foreclosure if they don’t get their way.

As you will notice in Diana’s article 3 major banks are guilty of housing fraud. And frankly, any agent who is part of this is also guilty of fraud no matter what your incentive is or was.  

Same is true when giving referral money, it MUST be on the HUD statement.  That’s why Realtors ® don’t pay referral fees to anyone whose not licensed.  Legally, a Realtor ® can gift a small token  of up to $25 per client per year.

Such a dilemma.  As long as sex, drugs, money and greed are with us, so will  fraud.  One major element is needed in order to make this a perfect storm,  lack of character.  Amazingly, we have been witnessing this at an alarming rate over the past few years from Wall Street and down into the alleys of  Main Stree

Clearly, a Respa violation.

(RESPA is the Real Estate Settlement Procedures Act, the 2008 law requiring that consumers receive disclosures at various times in the transaction. It outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD. Read more about it here.).

Thank you Diana for bringing this to the forefront.  Now, let’s see if the Feds step in and stop this!

Other Short Sale Articles:

You Can’t Be a Toast Watcher and Buy a Short Sale

Short Sale Agent In Sacramento Speaks Out

Bank of America Short Sale – Buyers Need Epidural