by Shashank Shekhar
All the San Jose (Zip 95128) Single Family and Condominium Real Estate market trend charts on this page are “live.” Want more details? Subscribe to my Real-Time San Jose Market Report by completing the form on the sidebar or by visiting San Jose Real Estate Trends page. It’s all about what’s going on right now and it’s free!!
All the San Jose (Zip 95127) Single Family and Condominium Real Estate market trend charts on this page are “live.” Want more details? Subscribe to my Real-Time San Jose Market Report by completing the form on the sidebar or by visiting San Jose Real Estate Trends page. It’s all about what’s going on right now and it’s free!!
There are many benefits to a Short Sale versus a Foreclosure for a San Jose homeowner, but there also many drawbacks to a short sale that need to be considered before deciding on the best course of action. A short sale is a great option for San Jose home owners who need to sell their home and owe more than their property is worth, but a short sale is not for everybody.
Figuring our whether a short sale is the best solution will take research. When a San Jose home owner finds themselves in a difficult situation, whether it be because of a job less, decrease in pay, or illness, combined with a drop in property value and even worse, an increase in mortgage payments, it is important to gather as much knowledge as possible. Ask me for a referral to local San Jose real estate expert who offer guidance in how to deal with the many options. The home owner should consult with their trusted attorney, accountant, real estate agent, and loan officer. Consider all options carefully, but most importantly, don’t “do nothing”.
Related Post - Foreclosure vs. Short Sale : What you need to know to make an informed decision
All the San Jose (Zip 95126) Single Family and Condominium Real Estate market trend charts on this page are “live.” Want more details? Subscribe to my Real-Time San Jose Market Report by completing the form on the sidebar or by visiting San Jose Real Estate Trends page. It’s all about what’s going on right now and it’s free!
CNBC and Bankrate.com just reported that home loan rates are at their all time lows. Yes, all time lows! This is great news for anyone who has yet to refinance to take advantage of the lowest rates ever recorded, or to purchase that new home or investment property more affordably than ever before.
Both 30 Year and 15 Year Fixed Rates clipped down to their lowest levels. All this is incredible as just months ago, many experts had anticipated that rates would be well above 5% this summer and on their way to 6% by year end.
Last month, NBC reported that nearly 50% of all people with a 30 Year Fixed rate had rates higher than 5.75% - do you know where your interest rate is at currently? It’s worth a look, and a call to me to help check it out!
Plus – in most parts of the country, home values as reported by both the National Association of Realtors and the S&P Case-Shiller Indices are higher than last year. If you were unable to refinance last year, the combination of your current home value and historic interest rates may provide you a greater opportunity to save money than ever before.
Finally, even if your home has lost value from when your loan was originated, you may still be able to refinance. There are some special programs available that might allow you to refinance without private mortgage insurance, even if your loan will now exceed 80% of the present value.
Don’t miss this chance to save money. Even if you have already taken advantage of the historic rates that have been offered, don’t miss this chance to help your family and friends. Call me today and we can discuss what options exist for you.
Time waits for no one…and when rates rise, they will rise quickly. Call me at 408.615.0655 to take advantage of these special rates or complete our rate quote form on the sidebar.
Whether you should do a short sale or let the home go to foreclosure depends on several factors. While for some homeowners, it is easier to throw up your hands and let the bank take your home, that might not be the wisest thing to do.
Short Sale Benefits
Here are a few benefits for doing a short sale that may not have occurred to you:
Buying Again After a Short Sale
Conventional loan guidelines may allow you to buy another home within 2 years. The wait for an FHA Loan is 3 years.
Buying Again After a Foreclosure
With certain restrictions, you may be eligible to buy another home in 5 years if the home was your primary residence. Without restrictions, the wait is 7 years.
If you are an investor and do not occupy the home, the wait to buy with a conventional loan is 7 years.
Affects on Credit After a Short Sale
How a Short Sale is reported can be negotiated with the lender. Options are Paid As Agreed, or Paid Settlement.
If it is reported as a paid settlement, it can make a credit score drop by 75-100 points and the item can be reported for 7 ½ years from the date of first delinquency that led to settlement.
Affects on Credit After a Foreclosure
A Foreclosure can be reported as a Foreclosure or Repossession. Foreclosures and Repossessions can be reported for 7 ½ years from the date of first delinquency that led to foreclosure. A Foreclosure will make a credit score drop immediately by 100-150 points in addition to points already lost due to delinquent payments.
If a Deficiency Judgment is filed in connection with a Foreclosure, the score may drop up to additional 100+ points.
Deficiency Judgments After a Short Sale
Judgments are often negotiated between the seller and the short sale bank. In some cases, such as California, if the home is your personal residence and was financed through purchase money, there is no deficiency judgement.
Deficiency Judgments After a Foreclosure
Banks are unwilling to negotiate deficiency judgments with the homeowner after a foreclosure. In California, for example, according to the California Association of REALTORS, a deficiency judgment may be filed regarding a hard-money loan if the lender forecloses under a judicial foreclosure versus a trustee sale or if the second loan is a hard money loan and the sale takes place as a trustee’s sale.
Length of Time to Move After a Short Sale
If you’ve had a foreclosure notice filed, you may be able to postpone that action while the bank considers your short sale. The wait for short sale approval can be from 2 to 3 months, or longer.
Length of Time to Move After a Foreclosure
Unless prior arrangements have been made, the bank may want you to immediately vacate the property and can commence eviction proceedings.
I always recommend that you obtain legal and tax advice before making a decision between a short sale or a foreclosure. I can also refer you to some real estate agents who are short-sale experts who can help you explore all the options available to you.
Fannie Mae and Freddie Mac are making the following changes to interest-only and 3/1 and 5/1 ARM Loan Programs. These changes go into effect immediately.
Interest Only Product Changes
Interest only transactions are no longer available for Cash-out refinances, Investment properties and 2 to 4 unit properties.
Interest only loans are still eligible on following transactions:
• 1-unit purchase and rate/term transactions
• Primary residences or second homes with a:
- Maximum LTV and CLTV of 70%
-Minimum credit score of 720
-The borrower must have minimum reserves of 24 months
3/1 and 5/1 ARM Qualification Changes
Fannie Mae is changing the qualifying rate for 3/1 and 5/1 Arms to limit the impact of potential payment shock for ARM borrowers. The borrower’s now must qualify using the greater of the note rate plus 2%, or the fully indexed rate. Lets understand this using an example:
Say you are buying a $500,000 single family house with 20% down payment and your start rate on a 5/1 ARM is 4%. Per earlier guidelines, you could have qualified for this loan with an income of $5800/month assuming you had no other debts. But with the new guideline, you need to qualify at 6% (start rate +2%). So now the income that you need to qualify for the same loan would be $6900/month. Thats a jump of $1100/month or ~19%.
As you can see from the example above, qualifying for ARM loans is going to be more difficult moving forward. If you would like to understand what loan program is more suitable for your situation, contact me for a complimentary consultation or fill out our rate quote form.
All the San Jose (Zip 95125) Single Family and Condominium Real Estate market trend charts on this page are “live.” Want more details? Subscribe to my Real-Time San Jose Market Report by completing the form on the sidebar or by visiting San Jose Real Estate Trends page. It’s all about what’s going on right now and it’s free!
All the San Jose (Zip 95124) Single Family and Condominium Real Estate market trend charts on this page are “live.” Want more details? Subscribe to my Real-Time San Jose Market Report by completing the form on the sidebar or by visiting San Jose Real Estate Trends page. It’s all about what’s going on right now and it’s free!
FHA recently announced additional resources for condominium approval process for San Jose and rest of the country condos.
All condominium inquiries, telephone and email, must be submitted to the FHA Resource Center at:(800) 225-5342 or by email at: info@fhaoutreach.com The FHA Resource Center will provide responses to general inquiries received from consumers and industry partners.
Before contacting the FHA Resource Center, it is recommended that you use the following resources to search for answer(s) to your question(s).
1. Check to see if your question is already included in the Condo FAQs currently posted on the web at: http://www.hud.gov/offices/hsg/sfh/condo/faqs_condo.pdf.
2. To determine if a project is on the FHA Approved List or to obtain the FHA concentration please visit https://entp.hud.gov/idapp/html/condlook.cfm and input the condominium project name or the Condo ID. It is recommended that only the first few letters be entered to return a complete list. If the project is not listed it will require FHA approval.
3. What is the process for obtaining project approval? For documentation and processing requirements, please refer to ML 2009-46B and ML 2009-46A, which can be found at the following web site: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm.
4. Requests and packages for HRAP processing must be submitted to the jurisdictional Homeownership Center. A Directory of FHA’s Homeownership Centers and the States they serve can be found at: http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm.
If you are planning to buy a Condominium in San Jose, contact me so that I can guide you in choosing a suitable financing option.
All the San Jose (Zip 95123) Single Family and Condominium Real Estate market trend charts on this page are “live.” Want more details? Subscribe to my Real-Time San Jose Market Report by completing the form on the sidebar or by visiting San Jose Real Estate Trends page. It’s all about what’s going on right now and it’s free!
Have you found that “almost perfect” San Jose home in the right location that is selling at a reduced price because it needs a little rehab work?
Unfortunately, most mortgage loan programs require homes “in need of work” to be complete before the financing can be secured for the purchase transaction. Whether the property needs a little or a lot of work, most First-Time Home Buyers simply don’t have the up-front cash to invest in a property prior to actually securing the financing.
However, the FHA 203(k) Rehab Loan may be your answer to turning that “fixer-upper” into your dream home.
The FHA 203(k) Rehab Loan is a popular mortgage program designed for buyers that want to finance the cost of home improvements into a new loan.
The financing for this loan will include the purchase price, as well as the improvements you are either required to do to be able to live in the home, or that you want to do, such as upgrade the kitchen, bathroom, etc.
This is also a great loan program for San Jose Real Estate Agents trying to sell homes that need repair. Buyers will have an option to complete those repairs and upgrades without a large upfront financial commitment. Think of this as a one-time close construction loan. At closing, the seller receives their money and the rest is put into an escrow account for the buyer to use for rehabbing the property.
All the San Jose (Zip 95122) Single Family and Condominium Real Estate market trend charts on this page are “live.” Want more details? Subscribe to my Real-Time San Jose Market Report by completing the form on the sidebar or by visiting San Jose Real Estate Trends page. It’s all about what’s going on right now and it’s free!
All the San Jose (Zip 95121) Single Family and Condominium Real Estate market trend charts on this page are “live.” Want more details? Subscribe to my Real-Time San Jose Market Report by completing the form on the sidebar or by visiting San Jose Real Estate Trends page. It’s all about what’s going on right now and it’s free!
All the San Jose (Zip 95120) Single Family and Condominium Real Estate market trend charts on this page are “live.” Want more details? Subscribe to my Real-Time San Jose Market Report by completing the form on the sidebar or by visiting San Jose Real Estate Trends page. It’s all about what’s going on right now and it’s free!
