Live in Lakeforest

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

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

VIDEO: One guest entering per minute at Irvine Open House

Click on photo above and you will be connected to the latest youtube video of my Grand Opening Open Houses.  These videos are NOT taken to market the homes as the home always sells the Tuesday or Wednesday after the Grand Opening video is shot.  It is made to give you a glimpse into the extensive marketing that goes into bringing 100-300 buyers through a home in 4 hours and ultimately selling the home over asking price within days.  I’d love it if you comment on the video or share it with your friends.  Since my business is 93% by referral, the person you share it with may be the one who benefits by my next Grand Opening.  Thanks.

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

SCAMS: Fake Short Pay Letters Plague The Real Estate Industry

The December 2009 issue of Fraud Insights warned Realtors about the latest type of advanced fee scam targeting settlement agents (title companies). Since then they published three articles describing the characteristics of these scams: a buyer purchases a property sight-unseen off the Internet, and remits a check representing the earnest money deposit and down payment. The checks are usually drawn off an international bank, although a few have come in from a U.S. bank or credit union. Shortly after we receive the check the buyer requests the amount over and above the required earnest money deposit be sent back to them because, “an urgent business transaction just came up.” These checks are always counterfeit.

Recently one of our offices forwarded the funniest response yet. The buyer sent a check in the amount of $885,000. The bank immediately identified the check as counterfeit and the settlement agent notified the real estate agents. In the meantime, the buyer sent a request to the settlement agent to send him back $400,000 because, “an urgent business transaction just came up,” but promised to send replacement funds in time for closing. The settlement agent forwarded the request to the buyer’s real estate agent who responded with this e-mail:

Since the first article we published on this topic, the Company’s National Escrow Administrators have been notified by settlement agents nationwide on nearly a weekly basis of transactions just like this. Times are tough, sellers and real estate agents want to believe they have an all-cash buyer. When they discover the transaction is bogus they admit all the signs were there from the beginning.

Dear Ivo,

I am so sorry to inform you the bank teller who took the deposit of your cashier’s check, literally took the check, cashed it and then fled the country with the entire $885,000.

But I have good news on how I can make it up to you. I was just informed by e-mail a king from the Congo needs to get several million dollars out of his country and has chosen me to help him. He will be sending me a cashier’s check for $10 million dollars and he will let me keep half as long as I send him back $5 million dollars. As soon as the funds are in my account, I will send you back $400,000 and deposit the $485,000 lost into your escrow account.

If that doesn’t work out, I have also won the Nigerian lottery worth $2.5 million and will be able to reimburse you from those winnings.

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!

Troubled homeowners, beware of ‘mass joinder’ lawsuit invitations

As some of you know, I was appointed last year to the Orange County District Attorney Real Estate Fraud Advisory Committee.  We meet at the D.A.’s office quarterly to discuss real estate fraud trends and how to protect the consumer and catch the perpetrators.  The article below touches on one of the current frauds that has hit Orange County.

What financially strapped homeowner wouldn’t want to join other troubled owners in a last-ditch effort to save their homes from foreclosure? But beware of unsolicited mailings inviting your participation in a “mass joinder” lawsuit as a way to do so.

Mass joinders can be just another way to separate desperate borrowers from their money — as much as $5,000 or more in upfront fees, according to the St. Louis Better Business Bureau. The bureau warned earlier this year that the mailings are the latest twist in scams that promise to force lenders to modify the loans of borrowers who no longer can afford their house payments or who owe more than their homes are worth.

Now, California has sued 14 entities, including several law firms and individual attorneys, accusing them of working together to defraud perhaps millions of people nationwide through the deceptive marketing of mass joinder lawsuits.

It is believed the defendants sent about 2 million pieces of mail to homeowners in at least 17 states. It is not known how many borrowers fell for the alleged ruse, but the California Department of Justice estimates the defendants’ take from the operation to be in the millions of dollars. 

To read the rest of the article.  Click below:

http://www.latimes.com/business/realestate/la-fi-lew-20110925,0,448398.story

HOW TO GET YOUR HOME SOLD (for more money)

 There is a lot of good advice in the following article written by Chobee Hoy.  Alternatively, if I’ve ever represented you on the sale of your home, you will note that a few of the paragraphs do not ring true.  I highlighted them in green.  Read on: 

While certain tips like properly staging your space will help get your home sold no matter what the economic climate, picking a talented real estate agent is one of the most crucial assets in getting your home sold fast and for the right price.

During the summer this is especially important to consider because buyers and sellers are less available due to vacations and kids being home on summer break. If you don’t have a dedicated agent you might not receive the customer service needed to get your sale closed.

Many agents are thriving in today’s market, so an easy way to find someone well qualified is to do some research – who is winning awards in your area and what are they doing to differentiate themselves from the competition? If you know someone that has recent bought or sold a home ask them for advice, or even a referral.

Before hiring your agent ask: What was your most challenging sale, what made it so difficult, and how did you ultimately get the home sold? This will tell you if the agent has experience and if they have the tools necessary to get your home sold.

Also, get realistic comps and price your home accordingly. If your home and a similar home across the street are on the market do something to differentiate yours from theirs whether it be lowering the price or putting some extra time, and perhaps a little money, into staging it properly.

Don’t take offense if you get an offer that is low, make a counter-offer. Let go of the emotion you’ve invested in your home. Be detached, using a business-like manner in your negotiations. You’ll definitely have an advantage over those who get caught up emotionally in the situation.

Winning awards – A decade ago, when I was a newer agent, I thought that winning a top First Team award for selling an extraordinary amount of homes would demonstrate that I was experienced and successful and the agent that sellers would want to hire.   That was true – in a way.  Sellers did and still do feel that the agent with the most signs around town MUST be the best.  Growing older and a bit wiser has caused me to think differently.  I found that the fewer clients that I dedicate my practice to each year – the more money their homes sell for.  If I cut my practice in half, I would have more time to answer my seller’s questions,  manage any repairs that needed to raise the value of their home, stage the home and ultimately market it to bring hundreds of visitors to its one and only open house.  (If you click on the youtube “Jenean Hill 3″ video you will see what I mean).  

You will NOT see my For Sale or Open Houses signs all over town week after week.  When my fully-marketed homes hit the market there is generally a line out the door waiting to get inside, and an accepted offer by the following Tuesday or Wednesday.  You will never see another Open House sign for that home except when the new buyers of that home hire me 5-10 years later to  market their home in the same fashion I did when they purchased it.  Does my company (or any other company, for that matter) offer awards to the agent that sells a reasonable amount of homes, for up to 10% OVER comps?  Of course NOT.  Awards go to the agent who sells more homes – not sells homes for MORE.   So when comparing agents, you will want to reconsider going with the agent with the most name recognition, and instead ask any agent you interview to bring their MLS Statistics report for the last 3 years.  Are their homes on the market for 8 only days or do they price them to sit on the market so their signs can have a permanent place all over town and give them even more name recognition?  Do they sell for more than asking price or do they eventually talk the seller (whose listing they took at an extra high price to appease them) into accepting a lower offer?

Now you can see that the sign of an incredible agent is one that does NOT have signs on every corner, but one that limits their practice to helping one or two clients at a time in order for them to win the the true award – more money in their pocket with less inconvenience.

One more thing, when I market your home in my tried and true fashion, you won’t need to worry about countering a low ball offer.  It will be blown out of the park by all of the offers of the buyers’ agents who asked me how much OVER asking price they would need to write their offer to win the keys to your home!

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/

Not only is he local, he is the BEST!

My past clients often rely on me to provide great service providers for around their home year after year.  Once again, I have someone to highly recommend.  The name is Greg Olsen (pictured to the left).  No, he is not a painter or a contractor.  He is a Doctor of Chiropractic and Wellness expert.  I have been treating with him since last fall/winter.  He was recommended to me by a chiropractor who was unable to give me any relief for my symptoms stemming from an assault last year.  His practice is near Lake Forest and Lambert behind the Round Table Pizza.  Boy, I wish I knew about him years ago.  He is an extremely skilled doctor who treats you like family.  His visits are not like visiting a typical chiropractor where you go in and get ‘cracked’.  He treats the whole body and spends as much time with you as it takes so you walk away renewed  and with a smile on your face.  He is honest and has a gentle fashion that you will appreciate. 

Because over 90% of my business is by referal, I get extra excited about giving back referrals to deserving service providers I encounter.   If you call him and give him my name, he will give you a coupon to use toward your first visit.  I would love to hear from you after you meet him so we can sing his praises together.

You can learn more about him by clicking here.