Beggar’s Delight October 17, 2008
Posted by Chris Zanger in Bay Area News, Campbell, Campbell Real Estate, Economics, Foreclosure, Home Design, Housing, Inventory, Investments, Loans, Los Gatos, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, Saratoga, Technology, The Zanger Team, Uncategorized.add a comment
“Halloween seems wasteful. Are there ways to make it more green?”
Danny Says: You can make a difference by knowing how to recycle, reuse, and repurpose all the Halloween tricks and treats.
Pumpkins: Crack open gourds and pumpkins with a hammer, and place the broken pieces in the woods or a field far ways from your house. Deer and other animals will feast on the flesh and seeds. You can also air dry pumpkin seeds as bird feed; our feathered friends crave the high-protein treat.
Barley Hay: Buy barley hay bales to decorate your front porch. Barley hay is a natural deterrent of algae in ponds and water gardens because it releases natural oxygenators to clear the water. Just gather barley hay into small bundles, stuff them into a netted bag, add a rock for weight, drop it in your pond, and forget about it. Hay can also be used as mulch in the garden.
Candy: Give leftover wrapped candy to local charities such as Meals on Wheels or an agency that works with children. Hard candy-like peppermints and butterscotch-can be crushed with a rolling pin and sprinkled on rolled cookie dough before baking for a yummy glaze.
Costumes: Donate last year’s outfits to local Goodwill or Salvation Army stores where they’ll sell them and raise money. After this year’s festivities, ask local children’s hospitals if they would like lightly worn costumes for the kids.
~Better Homes and Gardens (October 2008)
One Splashy Bath October 17, 2008
Posted by Chris Zanger in Bay Area News, Blogroll, Campbell, Campbell Real Estate, Economics, Foreclosure, Home Design, Housing, Inventory, Investments, Loans, Los Gatos, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, Saratoga, Technology, The Zanger Team, Uncategorized.1 comment so far
Keeping unnecessary waste out of landfills scores high in our book, and this bath does exactly that. Designed by Libby Langdon for the Better Homes and Gardens Living Green Tour, it teaches several reuse lessons.
Rehab Old Furniture
The vanity was first an antique dresser. Look for a piece that can accommodate plumbing; you may be able to reconfigure drawers to salvage storage.
Be Creative with Scraps
The original dresser top was removed, cut into strips like molding, and crafted into a simple mirror frame.
Choose Eco-Smart Surfaces
Countertops and backsplash tiles made of recycled materials are durable and decorative.
Note: The Living Green Tour has traveled coast-to-coast this year, sharing ideas and inspiration on green living at home. It makes its final three stops this month, but you can see photos of the entire exhibit anytime at BHG.com/livinggreen.
~Better Homes and Gardens (October 2008)
A Recipe for a Better Credit Rating October 7, 2008
Posted by Chris Zanger in Bay Area News, Campbell, Campbell Real Estate, Economics, Foreclosure, Housing, Investments, Loans, Los Gatos, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, The Zanger Team, Uncategorized.add a comment
The only way to recover from bad credit is to start rebuilding as soon as possible. You don’t need a miracle to prep your finances for a mortgage application-just a little discipline and organization.
Television Chef personalities Rachael Ray and Giada De Laurentiis, for example, have earned their fame by providing how to instructions for the preparation of virtually everything edible from spring salads to sautéed pork chops. Even if you don’t’ know much about cooking, you can whip up these delectable dishes just by following a recipe. Believe it or not, the same holds true for credit repair-if you can follow instructions, you can successfully rebuild your credit profile.
A Recipe for Better Credit
The primary ingredients in the recipe for overhauling bad credit are a dash of discipline, a pinch of organization, both sprinkled with a little time. Follow these steps to be on your way towards achieving a higher credit score.
- Make a Plan
Write down your income and expenses, including a detailed list of required debt payments. Decide realistically what you can afford to pay monthly on each account. If you have access to an automatic bill-paying system, set up your checking account to make these payments automatically. Otherwise, create an alternate system to keep all of your accounts current and up to date.
- Check your Credit Report
Improving your credit score may be as easy as reviewing your credit report for errors and omissions. Pay particular attention to credit limits-in other words, where the credit limit hasn’t been updated because your credit score might be understated. Then, look at the type of credit listed and the number of accounts shown on your report. If you have only one revolving charge account, get one or two more to satisfy your credit worthiness needs. A gas card or department store card are good options. Make small purchases and pay off the balances every month or at least within a few months. The addition of an installment loan to your credit profile can also raise your score. Always remember to incorporate any new debt payments into your budget and bill-pay plan. Continue to pay your bills on time and begin building a reputation for financial responsibility.
- Pay Down or Transfer Your Charge Card Balances
Ideally, the outstanding balance on each charge account should be less than 30 percent of that account’s credit limit. If you can’t pay off balances right away, consider transferring debt from a maxed-out account to an under-utilized account. This strategy can actually raise your credit score, but be sure to consider the fees and long-term costs before proceeding. Also, keep in mind that robbing Peter to pay Paul will only get you in further credit trouble down the road.
- Be Patient
It might take several weeks or a few months for corrections, credit limit updates, and balance transfers to be reflected on your credit report and FICO score. Let this process run its course as you continue to make your debt payments on time.
Once you have optimized your credit score and funded your mortgage, you can focus your attention on perfecting Gianda’s or Rachael’s spring salad. Maybe you can even serve it, along with those delicious pork chops, when you invite friends over for dinner to celebrate y our newly mortgaged home.
~Brian Thornton
FHA Updates and 203k Rehab Loan October 7, 2008
Posted by Chris Zanger in Bay Area News, Campbell, Campbell Real Estate, Economics, Foreclosure, Housing, Investments, Loans, Los Gatos, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, Saratoga, The Zanger Team, Uncategorized.add a comment
Over the past few months, I’ve maintained one article regarding FHA and its importance in today’s real estate market. Several developments in the past few weeks and months further underscore the importance of this amazing program. You may be interested to know that this is not the first time FHA lending saved the day. In fact, the Department of Housing and Urban Development and FHA lending programs were developed in response to the financial crisis surrounding the Great Depression. Recent modernization of the program will certainly help to reestablish stability in the mortgage marketplace. The Housing and Economic Recovery Act of 2008 implemented the following changes to FHA lending provisions.
- Maximum loan amount of $625,500 for high-cost areas (San Francisco Bay Area is “high-cost”)
- Financing up to 100% of the property value.
- Moratorium against risk-based pricing that makes lending to low credit borrowers more costly.
In a practical sense, borrowers with a troubled credit history and no money available for down payment can use the FHA loan to buy a home with the same interest rate as borrowers with 20% down payment and spotless credit. This program brings home ownership within reach for many Americans who would otherwise be unable to purchase a home.
Is this risky, you ask? There is no comparison between FHA lending and the Wild West of Lending we experienced for the past several years. FHA loans are fully amortizing requiring principal interest payments. Borrowers are qualified with full review of income and asset documentation. Succinctly put, FHA programs require that borrowers demonstrate the ability to repay the loan, a fundamental lending principal that was overlooked for several years resulting in the market turbulence we are now experiencing. Additionally, FHA offers financing of repairs to the property as part of the purchase money loan. With many properties coming to market from distressed sellers, this provision is more important than ever. Here are some highlights:
- Work may be completed over a 6 month period after closing escrow.
- Property is appraised “subject to” completion of the repairs allowing higher loan amounts.
- Work may include roofs, heating, electrical, room additions, flooring, window replacement, kitchen remodel, paint, and many other improvements.
- Owner may complete some or all of the work subject to approval of qualifications.
~Brian Thornton
NAR Pushes for Passage of Federal Plan to Right Financial Markets October 7, 2008
Posted by Chris Zanger in Bay Area News, Campbell, Campbell Real Estate, Economics, Foreclosure, Housing, Investments, Loans, Los Gatos, Real Estate, Real Estate Expert, Santa Clara County Real Estate, Saratoga, The Zanger Team, Uncategorized.add a comment
The National Association of REALTORS is urging the Treasury not to reward Wall Street by handing out “free money,” but to ensure that all actions keep the interest of taxpayers at the forefront. These activities need to be about Main Street, not just Wall Street, according to NAR.
NAR is urging Congress, which is taking up legislation on the Treasury plan, that the goal is to ensure mortgage money be made more available and accessible to home buyers and homeowners who need to refinance. Home sales have always led the way to economic recovery in America. In a letter sent to Congress, NAR pledged support for responsible government intervention benefiting homeowners, potential home buyers, financial institutions, the economy, and ultimately taxpayers.
NAR expects the legislation, a massive $700 billion bill, will be fast-tracked through Congress to give the U.S. government the authority to buy problematic mortgage securities from Wall Street firms. Although some are referring to this action as the biggest bailout in history, NAR sees this plan and the legislation under consideration as a means for the Treasury Department to help many more property owners avoid foreclosure.
In a statement by NAR President Richard Gaylord, NAR pledged support for efforts to stabilize financial markets and expedite refinancing and relief efforts for homeowners, as well as other measures to reestablish confidence in housing and the housing credit markets.
NAR has initiated meeting with Congress and the administration to ensure quick implementation of the daring plan announced by U.S. Treasury Secretary Paulson.
NAR has issued the following statements on the association’s position:
- NAR and its members support the ongoing bipartisan efforts to address the current crisis in the financial and secondary mortgage markets.
- It is vital to enact and implement legislation promptly to restore confidence in the financial markets and for market liquidity.
- It is crucial that Congress act soon to restore confidence in the mortgage markets so non-government mortgage lending returns as an option for a full range of qualified borrowers.
- A goal of the legislation must be to free up more mortgage money for home buyers and home owners.
- NAR supports efforts to restore a level of confidence in the housing credit markets.
- NAR will work diligently with Congress and the administration to achieve these goals, as well as the broader goal of reforming the housing finance system.
~Silicon Valley REALTOR
Fannie, Freddie Bailout to Help Mortgage Consumers October 4, 2008
Posted by Chris Zanger in Bay Area News, Campbell, Campbell Real Estate, Economics, Foreclosure, Housing, Investments, Loans, Los Gatos, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, Saratoga, The Zanger Team, Uncategorized.add a comment
The government takeover of Fannie Mae and Freddie Mac is designed to put downward pressure on mortgage rates and to ensure that home loans remain available. Officials say the government has three objectives: “market stability, mortgage availability, and taxpayer protection.”
Impact of Fannie & Freddie takeover will:
- Lower Mortgage Rates: An economist with the Center for Economic Policy Research believes, “the immediate impact will be somewhat positive. You’ll see some drop in mortgage rates because it’ll decrease the uncertainty.” It won’t be a huge decrease, maybe as small as one-hundredth of a percentage point, but it’s something.
- Increase Availability of Financing for Consumers with Good Credit: Fannie and Freddie guarantee the mortgage-backed securities that they issue, and those securities are deemed quite as safe as investments. Not as safe as Treasury notes, but relatively safe. Fannie and Freddie are government-sponsored enterprises, and for decades have had implicit government backing. That backing is now explicit. Now that the Treasure will buy mortgage-backed securities, their prices should rise, yields drop-so mortgage rates should follow. The Department that run Fannie and Freddie describes this perfectly, “As the government-sponsored enterprises (GSE) have grappled with their difficulties, we’ve seen mortgage rate spreads to
Treasuries widen, making mortgages less affordable for homebuyers. While the GSEs are expected to moderately increase the size of their portfolios over the next 15 months through prudent mortgage purchases, complementary government efforts can aid mortgage affordability.
A Little Fall Maintenance Eliminates Winter Headaches
Fall is a great time to finish any necessary maintenance to your home and yard. You’ll want to consider a few useful maintenance tips before settling in for the winter in from of that cozy fireplace.
- Fall Yard Cleanup Starts with Clean Gutters: Dirty, clogged, gutters can cause a lot of problems during the winter months including flooding and damage to your foundation and landscaping. Use a blower to blow leaves and debris out of the gutter, then clean out where the gutter meets the downspouts. Once gutters are clear of debris, take a hose and pour water into the gutter. Watch where the water goes…make sure it doesn’t pool at the foundation of the home as it could cause damage.
- Trees and Yardwork: Trimming back your trees during the Fall decrease your chances of any potential damage to your home from fallen branches during a storm. It will also mean less leaves to rake up. Since roots are actually growing deeper to prepare for winter, now is a good time to fertilize and reseed your lawn.
- House Maintenance: Install weather stripping or caulking around windows and doors to prevent drafts and lower heating bills. Replace the filter in your furnace as well as consider having the heating ducts cleaned. Doing so will not only better your heating efficiency, but will reduce household dust to provide relief to those with respiratory problems. Schedule your fireplace for inspection and cleaning to prevent dangerous chimney fires.
~Homeowner’s News (October 2008)
Don’t Delay Home Repairs September 16, 2008
Posted by Chris Zanger in Bay Area News, Blogroll, Campbell Real Estate, Economics, Foreclosure, Home Design, Housing, Inventory, Investments, Loans, Market, Real Estate, Real Estate Expert, Sales Statistics, Santa Clara County Real Estate, The Zanger Team, Uncategorized.2 comments
Home maintenance ranks low on many homeowners’ priority lists. When the washing machine breaks, you might fix it to keep from having to go to the Laundromat. But, if there’s no pressing need, home maintenance chores are often put off.
In the current real estate market, homeowners may be less inclined to pay money to make repairs around the house. However, the key to preserving the value of your home is keeping it in good condition.
Home maintenance is a necessary part of home ownership. The cost varies depending on the age of the home, its overall condition when you buy it and the climate. For example, in coastal California the alternation between fog and blistering sun takes its toll on exterior paint. Houses with a western exposure may need painting more often than those that face the east.
Homeowners can have a hard time coming to terms with the fact that they can’t recoup the cost of home maintenance when they sell. Home maintenance is a cost of ownership, as are property taxes, homeowners insurance and mortgage expenses.
Even though you can’t tally your home maintenance expenses and expect a buyer to reimburse you, you do benefit when you sell by keeping your home well maintained. Buyers tend to pay more for homes that are in top condition, particularly in a buyer’s market.
Also, if you don’t take care of deferred maintenance, buyers are likely to adjust the price they’ll pay for your home accordingly. The burden of making the repairs will be on them, so they will factor this into the cost of the house.
You can cut down on home maintenance by buying a condominium or townhouse in a planned-unit development where the homeowner’s association dues cover some of these costs. If you rent, your landlord is usually responsible for making repairs.
As a homeowner you can keep your home maintenance costs down by staying on top of correcting minor problems before they become major. For instance, if a threshold is cracked and showing signs of wear, it’s best to have it replaced before it causes water damage to the framing underneath. With the escalating cost of lumber, it would be a lot cheaper to replace the threshold now than to repair major water damage later.
Summer is an ideal time to take a serious look at your home in terms of getting it ready for the winter months. Track down leaks in windows, doors, roots, foundations, drainage systems, and basements. Have these and any related damage repaired.
Water is a homeowner’s biggest headache. Too much in the wrong place can lead to dry rot, fungus, and mold problems that can be very expensive to repair. Ideally, your home should be dry inside underneath the house during the rainy season.
Some homeowners can make repairs themselves. Others have little or no experience, and can’t even spot a problem when they see one. If you fall into the latter category, plan to hire a home inspector, contractor, or handyman to inspect your home annually for defects that need to be repaired. Many small repairs like installing weather-stripping, sealing French doors or windows, or caulking sinks and tubs can be done by a handyman.
Ask your inspector to prioritize the needed repair items. If you’re short of funds, at least take care of the most important items
Set a schedule for taking care of home maintenance items like having the furnace and fireplace checked, trimming trees and clearing drains.
~Realty Times
Down Payment in a Soft Market August 19, 2008
Posted by Chris Zanger in Bay Area News, Campbell Real Estate, Economics, Foreclosure, Housing, Investments, Loans, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, The Zanger Team, Uncategorized.add a comment
Lenders now require 20-30% down payment?!? We all hear the rumors, but perhaps I hear them more than the Average Joe. Clients call asking if the report they saw on TV late the night before was true. Do they really have to put down enormous sums of money to purchase a home? The short answer is no. The long answer is, well, much more complicated than that.
Right now lenders are writing down losses on foreclosed properties on an ongoing basis. Foreclosure rates are higher on programs that required little or no down payment. Compounding the lenders’ pain is the obvious outcome of lending more money on those properties (thereby increasing their losses further). Lenders have been retreating over the past few months, curtailing the aggressive guidelines they had adopted over the past several years. While the new policies are hard to characterize in a general sense, standard down payment requirements have increased from 5% or 10% to 15-20%. “Zero Down” programs have all but vanished.
In areas where property values are deemed to be decreasing, lenders trim their standard guidelines by another 5-10% on the allowable loan-to-value ratio. That means slower markets require buyers to come in with even more cash. This further reduces the pool of eligible borrowers and puts additional downward pressure on home prices.
So what does a buyer do? Consider FHA financing. It’s easy, affordable and accessible. FHA loans have not been relevant in many of the higher-cost areas of the country because the loan limits were too low. The economic stimulus package passed a few months ago provides for a temporary increase in FHA loan limits to as high as $729, 750. The best features about FHA financing are:
- Only 3-5% down payment is required depending on the loan amount.
- Mortgage insurance is about half the rate on a conventional loan.
- There is no “soft” or “declining” market policy so all markets have access to low-down payment financing.
- The program can be used for purchases and refinances.
- Rates are substantially better than their conventional, non-conforming counterparts.
Call today for more information if you or someone you know is in need of financing, but isn’t sitting on a mountain of money to make the purchase possible.
~Brian Thornton
2008 Exodus Marketing Group, Inc. 0808
FOR FURTHER INFORMATION PLEASE CONTACT CHRIS ZANGER WITH THE ZANGER TEAM AT REFERRAL REALTY.
CALL [408] 914-5046, OR VISIT OUR WEBSITE AT WWW.THEZANGERTEAM.COM
Housing and Economic Recovery Act of 2008 August 4, 2008
Posted by Chris Zanger in Bay Area News, Campbell Real Estate, Economics, Foreclosure, Housing, Inventory, Investments, Loans, Market, Real Estate, Real Estate Expert, Sales Statistics, Santa Clara County Real Estate, The Zanger Team, Uncategorized.add a comment
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
- GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
- FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The down-payment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
- Homebuyer Tax Credit – a $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
- FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
- Seller-funded down-payment assistance programs – codifies existing FHA proposal to prohibit the use of down-payment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
- VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
- Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
- GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
- Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
- National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
- CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
- LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
- Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.
~The National Association of Realtors
FOR FURTHER INFORMATION PLEASE CONTACT CHRIS ZANGER WITH THE ZANGER TEAM AT REFERRAL REALTY.
CALL [408] 914-5046, OR VISIT OUR WEBSITE AT WWW.THEZANGERTEAM.COM
My Lender Won’t Take My Payment? July 22, 2008
Posted by Chris Zanger in Bay Area News, Campbell Real Estate, Economics, Foreclosure, Housing, Investments, Loans, Market, Real Estate, Real Estate Expert, Santa Clara County Real Estate, The Zanger Team, Uncategorized.add a comment
It’s true, some lenders are refusing some homeowner’s payments nowadays. Yes, they are actually sending the check back, uncashed, with a note saying, “Thanks, but no thanks.” People call me up, all bewildered, and ask, “What’s wrong with my lender? I’m a little behind, but I finally get up enough money to make a full payment, and they send it back to me? Are they crazy?”
No, they aren’t crazy, but as Paul Harvey would say, “Here is the REST of the story.” [I used to manage a lending office that was so small that not only did I make the loans, but I also handled collections on those same loans if they fell behind. So I have experience in this area.]
Of course your lender WANTS your payment. They want ALL your payments, on time, every time. But once you start getting a month or two behind, your lender has a choice to make. Do they let you continue to make a payment now and then, when you are really 2-3 payments behind? Or do they insist on you bringing the entire account up-to-date?
Lenders realize that when someone is behind on their mortgage, they are probably behind with their other creditors, too. So if your lender is “nice” and doesn’t insist on the full amount to bring the account current, some other creditor will get whatever money is available.
They’ve found that once an account starts to get behind, it often stays behind. So if there is a chance the account is going to wind up as a foreclosure eventually, it’s better to get it over with as quickly as possible. In the long-run, sometimes they are better off taking the hard line because the longer an account is delinquent, the more it costs the lender if it winds up in foreclosure. The homeowner either comes up with the entire amount owed to bring the account current, or they don’t and the lender can then start to foreclose to get the situation resolved to reduce their losses.
~Realty Times
FOR FURTHER INFORMATION PLEASE CONTACT CHRIS ZANGER WITH THE ZANGER TEAM AT REFERRAL REALTY.
CALL [408] 914-5046, OR VISIT OUR WEBSITE AT WWW.THEZANGERTEAM.COM
