Pismo Beach CA – Today FHA announced that they would cut costs for streamlined refinances of FHA loans. The upfront Mortgage Insurance Premium is being reduced for these circumstances to .01 percent and the monthly Mortgage Insurance Premium is being reduced to .55 percent. To qualify, borrowers must have an existing FHA loan that was endorsed (FHA insures the loan but doesn’t make the loan) prior to May 31, 2009 and they must be current on their payments. Those borrowers likely have interest rates of at least 5% so this will allow them to take advantage of today’s low interest rates and save a great deal of money. FHA estimates borrowers will save, on average, $3000/year, depending on the amount of the mortgage. It will allow current FHA borrowers to refinance without requiring underwriting. To take advantage of this offer and to see if you are eligible, contact your current lender.
Pismo Beach, CA – Will I Ever Want to Own a Home Again?
Pismo Beach California – Will I ever want to own a home again?
You may be upside down on your mortgage and experiencing a hardship that is disrupting your life and your peace of mind. Right now you most likely want to get out from under the weight of the unaffordable mortgage and never get into homeownership again!
But in time your feelings towards homeownership will change. The desire to have your own place and be able to fix it up the way you want, have family come stay with you if you so desire, to be able to have pets without having to get permission or paying large deposits are amongst the reasons we all want our own home. There is something stabilizing about owning your own home when you can sustain the mortgage payment. And you can’t be kicked out because the landlord quit making the payment or decided to sell the home or move back into it.
The reason I mention this is because most people in a distressed situation just walk away from an unaffordable mortgage and let the home go to foreclosure without ever seeking help or trying to sell the home in a short sale. There are many consequences in doing that including a lower credit score, having more difficulty in getting a car loan or any other kind of loan, having a foreclosure on your public record, employment issues, and you can’t buy another home for 7 years, versus 2 – 3 years for a short sale.
If you owe more than your house is worth and are experiencing a financial hardship, give us a call to find out what your options are. We want to help take the weight off your shoulders and let you start sleeping restfully once again. And yes, the day will come when you want to own a home again and it will be possible. Get a fresh start!
When we talk, we will explain how the process works in detail and answer any questions you may have.
Spencer & Margaret are Realtors and owners of Ocean Breeze Real Estate and are a Certified Distressed Property Expert (CDPE) team.
Phone: 805-709-7646 (Spencer) & 805-709-8535 (Margaret). Email: OceanBreezeRE@gmail.com.
For more information about short sales and foreclosure avoidance solutions, go to our website devoted to just that topic at www.DistressedHomeownerHelp.com.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
Spencer & Margaret Morris specialize in short sales in Pismo Beach California and all of Five Cities, Santa Maria and the Central Coast California.
HE Needed a Realtor?
Pismo Beach California – HE needed a Realtor? Interestingly the founder and former CEO of FSBO.com, Colby Sambrotto, tried selling his New York apartment himself and had it on the market for 6 months before giving up and hiring a Realtor, according to a story in the Wall Street Journal. He not only hired a broker to represent him, paying him 6%, Mr. Sambrotto netted more money in the end using a Realtor, which goes against the FSBO idea that if you sell on your own you can save a commission (supposedly save money). Even though he staged his home and put it up on a number of websites, he found that “buyers are so reliant on brokers.” And that is true. Why should a buyer enter into the largest purchase of his/her life without representation? A buyer’s agent not only assists the buyer through all the stages of loan pre-approval, search for homes, Comparative Market Analysis (CMAs), explaining the contract and the process, making sure the buyers interests are protected, but also follows through with the escrow process, inspections, communication and more, all the way to the close of escrow and then in a continuing relationship.
Mr. Sambrotto discovered that there is a lot more to selling a home than putting the listing on some websites, putting a sign in the yard and holding his own open houses. The seller’s agent REPRESENTS the seller and will price the home strategically to be competitive, make recommendations to make the home more appealing, place the home listing on the MLS and many other websites, create a single-property website, hold the home open for the broker tour, hold open houses, network with other agents who have buyers for the home, prepare all the paperwork and disclosures, review all offers and explain the benefits and disadvantages of the offers, coordinate inspections and/or work to be done in order to close, coordinate with escrow and stay in constant contact with the seller, the buyer’s agent and escrow to ensure that the home closes escrow.
It’s a true statement that buyers want representation and that agents prefer working with agents. Most homeowners are not aware of all the disclosures that are required and what the common practices are in the sale of real estate. Hence, nearly all for sale by owners wind up listing with an agent, as even the founder of FSBO.com wound up doing.
If you’re looking to sell your home in the Pismo Beach/Five Cities area or San Luis Obispo or Santa Maria, we’d be delighted to talk with you. Just contact Spencer & Margaret Morris at Ocean Breeze Real Estate at 805-709-7646 (Spencer) or 805-709-8535 (Margaret). Or contact us by email at OceanBreezeRE@gmail.com.
3 Ways to Improve the Value of Your Home in the Pismo Beach Area
Pismo Beach California – 3 Ways to Improve the Value of Your Home
Just making some small, inexpensive changes to your home can increase the value and/or desirability of your Pismo Beach/Central Coast home and result in a quicker sale. Take a look at this short video to find out what those 3 ways are. We would be happy to take a look at your home and provide you some specific suggestions for making your home more appealing to a buyer.
Why List Now and Why Buy Now in Pismo Beach and the Central Coast?
Pismo Beach CA – Why List Now and Why Buy Now in Pismo Beach and the Central Coast?
Many people are concerned about the timing of either listing or buying a home. There is one looming factor that can make this time the best time for both the seller and the buyer and that is the expected rising of interest rates. There has been talk about rates going up for some time but sooner rather than later they are going to start rising. Consider what the rising interest rate does to the mortgage payment: a 1% rise in interest rates affects a mortgage payment to where a buyer can afford 10% less of a mortgage amount. A rise in interest rates could knock some buyers out of the market all together or into a lower loan amount and therefore a lower sales price. Buyers who are waiting for prices to continue to drop could still wind up with a higher mortgage payment (see chart below). Rates are still quite low–under 5% so whether you’re planning to sell or you’re looking to buy a home, we can help you. The indicators show it could be in your best interest to act now! Call us or email us if you’d like to get started.
| Example Home Purchase $500,000 w/20% Down | Rates up 1% & Prices Steady | Rates up 1% & Prices Drop 10% to $450,000 |
| Today | Probable | Possible |
| Loan Amount $400,000 | Loan Amount $400,000 | Loan Amount $360,000 |
| Interest Rate 4.75% | Interest Rate 5.75% | Interest Rate 5.75% |
| Principal & Interest $2,086.59 | Principal & Interest $2,334.29 | Principal & Interest $2,100.86 |
Spencer & Margaret Morris, Ocean Breeze Real Estate
New FTC Mortgage Assistance Relief Services Ruling
The new Federal Trade Commission’s MARS ruling, regarding helping distressed homeowners in either loan modifications or short sales or any kind of foreclosure prevention, went into effect January 31, 2011 . The new regulations:
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Make it illegal for anyone collect an upfront fee
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Requires specific language in marketing materials and communications
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Requires specific record keeping for 2 years from the date of document creation
The reason for the new ruling is to stop unethical people from taking advantage of homeowners in distress and to stop fraud. It applies to loan officers and attorneys–any professionals in the distressed property industry. Most realtors are exempt from this law. There are severe penalties for non-compliance. If you want more information regarding this, feel free to contact us: 805-709-8535 or email us at OceanBreezeRE@gmail.com. If you are in a distressed situation with your home in the Pismo Beach/Central Coast area, we would be happy to help you. You can access our website specifically for those in your situation at www.DistressedHomeownerHelp.com where you can access free reports and information.
