Live in Lakeforest

Jenean Hill’s friend’s story in the OC Register, Jan., 26th, 2010

ZERO LEFT IN LAKE FOREST on the MLS!…., but I have 2 Standard Sale “Pocket Listings” in the mid 200K’s.

Would you believe that there are ZERO 1001+ sq. ft. 2-bed, 2-bath homes with a garage in the entire city of Lake Forest that are Standard Sales?  That is right.  When they come on the market, they fly off!   Did you also know that rents are going up, up up?  That is right as well.   Let me tell you about 2 upcoming listings that I know about.  Both are tenant occupied and the tenants would like to stay, if you want them to:

1) Lower level approx 1050 sq. ft. 2-bed, 2-bath Tierra Vista property with dual master suites at opposite ends of the condo.  It has a wide yard with french door access  from bedrooms.  New appliances, pottery barn-looking dining room/kitchen fixtures and faucets.  2-tone decorator paint. One year old Karastan carpets in the bedrooms and ceramic tile in the common areas.  Laundry room and direct access garage and one assigned parking space.  The tenant pays $1700/month and is on a month to month and would like to stay.  Some of these same units across the street were kept as apartments, not condos and they rent for $1900 to 2,200+/month. Low dues of $262/mo with no mello roos.  Rents are VERY strong right now so it is very hard for buyers to find a place.  Good time to be a landlord.  The tenant has expressed interest in buying it because the love their home so much.  They cannot qualify and would have to get family members to buy it.  Price is $265-275K.  Investor 25% down total payment would be in the $1500′s/mo while 5% down buyers can buy it for “same as rent”

2)  Serrano Woods 2-bedroom, 1242 sq.ft. townhome that has 1-1/2 baths. The couple would like to sell their own home and rent it back.  They hope some time in the next few years to move out of state if they gets jobs in their new area.  They have lived there many years and have upgraded the home.  Kitchen and bath remodels, composite (granite type) counters and center island. Ceramic tile in kitchen and baths.  There is a small back yard that connects to their direct access garage.  This home comes with the Sun & Sail Club across the street  with HOA dues in the 280′s/month.  (Youtube ‘Jenean Hill 4′ to see more about living in lake forest). You can go on a sunset cruise on your own kayak if you lived here or if you are the landlord and did not convey the membership.  Market rent is about $1700-$1800 which they would be able to pay to stay in their own home.  Price would be about $250,000. Investor 25% down would probably be a total cost somewhere in the $1400′s/month.  5% down buyers can buy it for “same as rent”.  (Photo is that of a model match that I sold last year for $275K)

 The first one will go quickest as I am starting to tell people about it.  Please call ASAP if you are interested in buying these NON-distressed properties that you can close escrow on and enjoy all year long.

Highly Upgraded Dual Masters – Own for same as Rent with only 5% down.

OUTBACK STEAKHOUSE LIGHT LUNCH 12:00pm SHARP on Saturday, January 21st.  What would be better than owning a home where you drive past beautiful lakes, forests & mountain views before pulling into your garage each day? It would be locking in all of this AND an ‘Off Peachwood’ address for about $200k!  This stunning & highly upgraded 2-bedroom, 2-bathroom, end unit has dual master suites, & a direct-access garage. Upgrades include Gourmet, granite/stainless kitchen, 2-tone decorator paint, scraped ceilings, gleaming wood laminate floors, new appliances/ window coverings/ lighting & bathroom fixtures. This model occupies half of the upstairs of this building and feels like your own Park Avenue loft! All living space is on second level. No living space below except garage. Complex just rehabbed months ago and looks like a million bucks! You’ll love the lifestyle here. Morning swims at the pool just across the street or relaxing away the day’s cares in the sparkling spa. Just a short stroll to parks, creeks, trails and shopping and minutes to Irvine Spectrum. If you can not live in an upper unit, and need a back yard in the $200K’s, call me.  I have 2 pocket listings that are standard sales.

With about $15K to $16K total cost to close (5% down plus closing costs), you can own this home for a ‘feels-like’ payment in the $1400-1500′s per month if you are currently renting now.  You have to see it to believe it. 

Open House Saturday, January 21st from 12-4pm – 25185 Oak Canyon, Lake Forest, CA 92630.  Lunch at noon “while supplies last”!

To see 24 more photos, click here: http://www.realtor.com/realestateandhomes-detail/25185-Oak-Canyon-Ln_Lake-Forest_CA_92630_M17122-19637

Like what you see?  Call lender/partner, Tom Testerman at 949 422-4497 for your loan approval.  He will be at the open house, but the line might be kind of long.

First Team highlights my client’s story on video and in the Orange County Register every weekend for the month of January.

220 Open House Guests. Multiple Offers. SOLD next day over top of range.

Update on Sunday’s Grand Opening Open House:  We opened the doors at noon to a line of people down to the street.  There was a constant stream of guests entering the home – About one person per minute for 4 hours.  Got it all on video so you can “Youtube it” under “Jenean Hill 5″ in about a month once it is edited.  Great team work from Rachel Watt, Cynthia at Hallmark Escrow, and Catherine at Ticor Title. Tom Testerman from Alpine Morgage manned the lending station and preapproved 6 buyers.  I had a display board titled, “The reason why there are so many people at the open house today” that had a copy of all of the advertising that I ordered to bring the crowds into the open house. 

WAS OPEN SUNDAY, Oct. 23rd – Harvard Square – Gourmet Lunch Served at 12:00 Noon from Double-Sized Granite Gourmet Kitchen!  $599,900 t0 $655,000

22 Nebraska, Irvine

Free 52” LCD HDTV goes to the buyer of this spectacular, upgraded four-bedroom+ den SFR on a cul-de-sac street in the highly desirable gated community of Harvard Square!  This corner residence with ample street parking was expanded by almost 500 square feet to become the largest home in the Revere tract.  Redesigned with indoor and outdoor entertaining in mind, it features formal living and dining rooms AND an expanded great room with a double-sized GOURMET kitchen featuring dark cherry finished cabinets with pull-out shelves, exquisite granite counters, stainless steel appliances, walk-in pantry, a 9’ x 4’ center island with a breakfast bar AND still room for a full-sized table!  

Great room also offers relaxation by the warmth of the beautiful fireplace and built-in media center and French doors which lead to a covered side patio with outdoor stainless steel kitchen complete with sink and hot & cold water.  Backyard features colorful flower & herb gardens with plenty of room for entertaining.

Upstairs master suite has double doors leading to the master bath with separate Roman tub & shower and a large walk-in closet.  There is also a “Mini Master” with retreat and direct access to hall bathroom. Upgrades include recessed lighting, raised panel doors, free-standing bathroom vanities, Two-tone decorator paint, mirrored wardrobes, seven ceiling fans, wired bedroom internet access, whole-house water filtration system and a spacious DEN with built-in wrap-around office–ideal for running your home-based business. 

Resort-style amenities abound within this community’s own ‘central park’. Large swimming pool, basketball and sand volleyball courts, children’s playground, barbeque area and more.  Award-winning schools.

This one-of-a-kind home  is being held open at noon for a first-come, first-served gourmet lunch,  Sunday, October 23rd by First Team Real Estate’s Jenean Hill – the agent who leaves no stone unturned in marketing and selling her client’s listings within one week – each and every time.  For more information contact Jenean Hill at (949) 583-1331 or www.LiveinLakeForest.com.

(Be sure to come by 12:00 to get in on the lunch!)

Waiting period to buy again after short sale

There is much “mis” information regarding the length of time former homeowners are required to wait between the date of their previous foreclosure / short sale and the time they want to purchase their next home.

Wait periods can be as short as two years or as long as seven years. What contributes to the confusion….are the additional “overlays” (additional underwriting criteria) for each specific investor.

Criteria are different for “conventional” loans vs. FHA/VA loans. For both types…..what determines the “wait time” is the new buyer’s (i.e. former “short seller”) circumstances at the time of the sale. Specifically….what were the “extenuating circumstances” that can be clearly documented?  The “burden of proof” will clearly be on the BUYER and there is USUALLY more than just ONE circumstance.

Examples of extenuating circumstances are:

1) Job loss job in a specialized field, and what caused the extended period of time to find a new job.

2) Significant health issues for borrower or close family member.

3) Death /illness of close family member PARTICULARLY if the victim is a signatory on the loan. (must provide medical records and/ or death certificate).

Strategic Defaults

Buyers are NOT eligible for a new FHA- INSURED MORTGAGE ….if they pursued a short sale agreement on their principal residence simply to:

1) Take advantage of declining market conditions   AND
2) Purchased at a reduced price…a similar or superior property…within a reasonable commuting distance.

In other words if your buyer engaged in a “strategic default”…they can kiss of any FHA financing for the foreseeable future.

Buyers seeking “conventional financing” who previously “strategically defaulted” currently have up to a 7-year wait period before they are eligible for financing.

Specific wait time criteria that can be viewed here:

Fanny/Freddie wait times for former short sellers: http://filelibrary.myaasite.com/crm-snap/2/2599/441400.pdf

FHA wait times for former short sellers: http://filelibrary.myaasite.com/crm-snap/2/2599/441401.pdf 

This information was provided by Daniel Dobbs, American Commerce Mortgage in Yorba Linda.  Dandobbs6@gmail.com

FALL LEAVES BRING FALLING INTEREST RATES

The news in the papers, financial websites, and money blogs this month has us pondering interest rates and refinancing again. First, 30-year mortgage interest rates continue their historic drop, reaching an average low of 4.125 percent. It’s difficult to predict if those rates will continue to go down or start to creep up, but we know one thing for sure:  These rates could mean a lot of savings for homeowners. Then there’s the news about the Obama administration’s plans to help struggling homeowners refinance their mortgages. This program would help homeowners with government backed loans refinance to more favorable terms to keep their homes. Finally, home prices have seen a slight increase this spring – rising by as much as 3.5 percent. This good news means some homeowners may actually have equity in their homes again as the value of houses climbs. All this news about loans and refinancing got us thinking: Is now a good time to refinance your home?  Who Can Refinance?

These days, not everyone can refinance a home – nor does it make sense for everyone to refinance. The main reasons to apply for a refinance are to lower monthly payments, secure more favorable loan terms, or consolidate debt. If you already have a low interest rate, good loan terms, and a manageable monthly payment, you may be better off leaving your mortgage alone. Most people assume homes that are underwater, meaning you owe more than the home is worth, aren’t eligible for refinancing. However, many programs, both governmental and non-governmental, work specifically with homeowners in this situation so they can take advantage of today’s low rates. The standard rule of thumb for homeowners considering refinancing used to be  that, unless you can lower your interest rate by at least one percentage point, the refinance doesn’t pencil out financially. With “No-Cost” loans often available today, this is no longer the rule. If you’ve maintained good credit and would like to lower your monthly outlay, ditch some less-than-desirable loan terms or get out from being underwater, refinancing now might just make perfect sense. Interest rates are at historic lows, and banks are ready to work with refinancing applicants.

Refinancing Advantages

The main advantages of a home refinance don’t change much, no matter the state of the housing  market. There are really three main reasons to seek a refinance. 1. The top reason to refinance is to lower your monthly payment by securing a lower interest rate. Right now, 30-year mortgage interest rates are averaging about 4.125 percent. Rates can go lower if you refinance into a 15 or 20-year loan instead. We don’t know where rates will go in the future, but they can’t get much lower.

2. The second reason you might try to refinance your home is to secure better loan terms. During the housing boom, many homeowners got themselves into interest-only, adjustable rate mortgages.

At the time, this loan option made sense as home values kept rising. In today’s housing market, a fixed-term loan that locks in today’s low interest rates makes more financial sense for homeowners and allows you to pay off your principal balance, not just interest. Now could be an especially good time to refinance if you are in a 5, 7, or 10-year adjustable rate mortgage. You don’t want to get to the end of that loan and suddenly face skyrocketing interest rates. Also, if you’re underwater on your home, any refinancing option that lowers your payment or helps you gain equity in your home is better than your current mortgage.

3. Lastly, many homeowners use a refinance to consolidate debt, either from a home equity line of credit or credit cards. Rolling these debts into your mortgage secures a better interest rate and lowers the total amount you’ll end up paying for these debts in the long run. the refinance by the amount your monthly payment is reduced. The answer tells you how many months it takes to break even.

However, a better way to determine whether now is a good time to refinance is to figure out how much the refinance will save you in overall interest expenses. You want to capture enough savings in interest expenses to offset the closing costs. A lower interest rate can certainly lower total  interest expense, but so can refinancing into a loan with a shorter term – 15 to 20 years, for example. This move can save you tens of thousands of dollars over the life of your loan. A shorter loan term means your monthly payments will increase, but if you can afford the additional cost you can save yourself a bundle of money in the long run.

 Next Steps

Talk to my lending partner, Tom Testerman at (949) 422-4497 to learn about whether a refinance makes sense for you right now. You could save yourself a bit of money right before the holidays arrive – there are only so many shopping days left!

HELP. I’ve fallen and I can’t get up!

The U.S. just lowered the size of mortgage it will guarantee.  The current conforming loan limit, which determines the maximum size of a mortgage that the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac can buy or guarantee–expired Friday, Sept. 30. 

Beginning Oct. 1, the conforming loan limit was decreased to $625,500, from the current $729,750 limit, though the majority of counties fell far below the $625,500 maximum.

Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) estimates that more than 30,000 California home buyers statewide will be impacted by the change to the conforming loan limits.

I prepared you for this event for many months.  What does this mean to you?  If you need to sell a home in the $600K range, your pool of qualified buyers is now smaller.  Be sure to put your home on the market in October before the price decreases in the next few months.  If you have a home in the 400’s or 500’s.  It is likely that your value will decrease a bit later as a result of buyers being able to buy larger homes under the new $625,500 conforming loan limit.  I expect that SFR homes under $400,000 will not be as affected.  Buying a condo?  Prices recently fell as a result of most communities losing their FHA approval.  If you don’t have a decent down payment, please call me and I will explain your options and see if I can help.

Obtaining a Home Loan When Income is Freelance

After the financial market downturn in 2008, getting approved for a mortgage loan became even more difficult. Combine that with the fledgling economy, which left many people turning to freelance work, and the challenges involved in qualifying for a home mortgage increase exponentially. However, with a little extra work, home buyers using freelance work as proof of income still can qualify for a new loan.

• Borrowers who earn most of their income on 1099s should be prepared for extra preparation, paperwork, and discussion of their financial standing when applying for a mortgage.
• It’s important that independent contractors show that their income is stable and increasing. For some, that may mean declaring all their income on their tax returns, and not, say, carrying anything over to the next year, even if it means paying more taxes.
• Consistency in income is key, so those applying for a mortgage this fall or winter should be prepared to provide proof for year-to-date income.
• To increase the chances of getting a mortgage approval, borrowers should pay off other debts, including balances on credit cards.
• Pinpointing the source of the down payment also is helpful. If the down payment will be a gift from a relative, borrowers are advised to submit an account statement showing the funds are available and awaiting the home purchase. Same goes for borrowing from a 401(k).
• Freelancers also should be prepared for a more in-depth analysis of their ability to repay the debt. Submitting tax returns from the last three years and explaining any significant differences in income is advised.

Planning on buying a home next year?  Ask your accountant about creating a C-corp for your business.  Your freelance income can go into it and you can pay yourself a salary each month.  You wil pay a bit more in taxes, but that is far better than NOT  being able to purchase a home at the bottom of the market with great interest rates and being stuck with the government taking a huge chunk of your paycheck each month.

Read the full story:

http://www.nytimes.com/2011/08/28/realestate/loans-for-freelancersmortgages.html?ref=realestate

Time to Buy or Sell Real Estate – It Couldn’t Be More Obvious!

Compelling reasons on why it’s a good time to buy from Rich Levin through BrokerAgentSocial.  In fact…It Couldn’t Be More Obvious!

Expert Advice

Two questions dominate the minds of Real Estate Buyers and Sellers. Let’s get them both answered honestly, right now.  The questions are obvious. For Buyers, “Is it a good time to buy?” For Sellers, “Is it a good time to sell?”

The billionaire investor that the brightest watch for advice, Warren Buffett, said, “I buy when people are selling and I sell when people are buying.” In Real Estate, at the moment, there are an abundance of homes for sale (people are selling) and a scarcity of Buyers. That means prices are soft which makes it an excellent time to buy for those who are able to finance the purchase of a home.

The Reporters Are Wrong

‘For those who are able to finance,’ regarding mortgage financing most news reporters have this completely wrong. Down payment requirements are still wonderfully low. Interest rates are ridiculously low.

Steve Wynn, billionaire Las Vegas casino developer recently (July 19, 2011) commented publicly that insecurities in business are causing people to not make buying decisions. This is great news for people who have the courage and good sense to make buying decisions.

Bottom line to Real Estate Buyers is to go talk to a lender or get a lender recommendation from a Real Estate Agent. Find out if you can qualify for a mortgage, if you can buy now. If you can help your son, daughter or someone you love buy now, help them now.

If I Had Only Known Then…  Read the rest of the story

http://ftemerson.wordpress.com/2011/08/23/it-couldn%e2%80%99t-be-more-obvious/