San Jose California Real Estate and Homes for Sale2008-07-23T21:09:45ZNo AuthorCopyright 2008, No AuthorSPHPBLOGREO Properties There is a lot of interest in buying bank owned properties these days. A lot of information, some good and some bad, is floating around about the subject. Often times, the information offered requires a fee to be paid, with the promise that you can make a lot of money with little effort once you know “the secret formula”. The fact is that there are no secrets, and to make money in this segment of the real estate market does require some effort, and patience.
What’s an REO?
REO stands for “Real Estate Owned”. These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you’ll receive the property 100% “as is”. That could include existing liens and even current occupants that need to be evicted. A REO, by contrast, is a much “cleaner” and attractive transaction. The REO property did not sell during its foreclosure auction. The bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Please be aware that REO’s may be exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.
Is it a bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity for easy money. This simply isn’t true. You have to be very careful about buying a REO if your intent is to make money off of it. While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it. When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures, yet there are also many REO’s that are not good buys and not likely to turn a profit.
Ready to make an offer?
Most banks have a REO department that you’ll work with in buying a REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS. Before making your offer, I will contact either the listing agent or REO department at the bank to find out as much as we can about what they know about the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender. After you’ve made your offer, you can expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you’ll be dealing with a process that probably involves multiple people at the bank, and unlike us, they don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take days or even weeks.
Financing a REO or Bank Owned Property
In most cases, financing a bank-owned property is similar to financing a traditional purchase. In order to have your offer accepted, unless you are paying cash, you will need to be pre-approved for a new loan. Additionally, the bank that owns the property may request a more in-depth review of your assets. Please be aware that during these extremely volatile times in the mortgage industry, longer-term rate lock periods may be required to allow for your negotiation period with the bank's REO Department. One of the primary keys to strengthening your buying position is to be working with a highly-qualified, professional lender. (A generic, web-based pre-approval letter will not be sufficienct in this market.) J. Shoop, a 15-year industry veteran from Indymac Bank, will provide you with a no-obligation Mortgage Planning Session, to evaluate your long-term and short-term investment goals, as well as your cash-flow and equity objectives. Be sure to ask about our FREE credit report offer!
]]>http://www.sanjose-california-realestate.com/weblog/index.php?entry=entry080129-2007342008-01-30T00:00:00Z2008-01-30T00:00:00ZThe Best Time To Buy! Last week's highlights included a quarter point Fed rate cut, which brings the Fed Funds Rate down to 4.5%. The Prime Rate now stands at 7.5%, which is good news for home equity lines, consumer and business loans. Additionally, those who have adjustable type loans should see some benefit. But because a Fed cut can stimulate the economy and bring some inflation, fixed home loans tend to worsen a bit after the Fed cuts rates.
The latest read on Inflation was right in-line with the Fed's target. A 1.8% annual Core Inflation rate was reported, which is within the 1%-2% Fed comfort zone - good news for bonds.
Help wanted! Well at least it was for 166,000 Americans during October. This was the best report since May and twice the forecasted amount. The Report showed the rate of unemployment at a very respectable 4.7%. This type of strong report often leads to trouble for bonds, but a look deeper into the numbers showed the Hourly Earnings figure to be less inflationary than expected. The markets are concerned about wage based inflation, but Average Hourly Earnings increased by just 3 cents to $17.58 per hour.
PEOPLE OFTEN WISH FOR MORE TIME. AND THIS WEEKEND THAT'S JUST WHAT WE WILL GET - AN EXTRA HOUR TO CATCH UP ON THINGS OR MAYBE SOME EXTRA SLEEP. FIND OUT THE DETAILS ALONG WITH SOME WILD EVENTS THAT CAN HAPPEN WHEN WE CHANGE TIME, IN THIS WEEK'S MORTGAGE MARKET VIEW!
Forecast for the Week
Have you ever flipped through all your TV channels to find nothing on? Well, that's how market traders will likely feel this week as they flip around for some economic news releases. But the news calendar takes a well deserved rest next week with mostly lower to mid-level reports scheduled. That means bonds will probably trade inside the range illustrated below - unless stocks bust a major move. If stocks rally sharply higher, bonds will be sold off to raise the cash needed to chase stocks, causing home loan rates to rise. Should stocks slump on more fears about credit quality, the proceeds from the stocks sold will be parked into bonds - bidding them up and helping home loan rates improve.
Chart: Fannie Mae 6.0% Mortgage Bond (Friday Nov 02, 2007)
The Mortgage Market View...
Turning Back the Hands of Time
This weekend, the sun sets on another season of Daylight Saving Time. In case you hadn't noticed, Daylight Saving Time (DST) was actually extended this year by an entire month--it began earlier last spring and ran longer into this fall. But, alas, all good things must come to an end...and this year Daylight Saving Time ends Sunday, November 4th.
The extra month that we enjoyed was actually the result of the Energy Policy Act, which was enacted by Congress back in 2005. Originally, the bill was written to extend Daylight Saving by two months, but some very verbal opponents fought the change. Farmers say that DST has a negative impact on their livestock in general--as it is tough for them to adapt to the time change, and they consequently produce less milk, eggs, etc. Because DST is not followed uniformly around the world, airlines claim that it might mean many missed international flight connections. Additionally, TV and Cable stations argued that they would lose viewers and advertising revenue, simply due to less time spent in front of the television because of more time spent outdoors in daylight.
So a compromise of one additional month of DST was reached. However, Congress did retain the right to revert back to the old dates if the change proves to be widely unpopular, or if the energy savings aren't significant.
Why the change?
After making the adjustment to getting up an hour early, Americans overwhelmingly like Daylight Saving Time. There is simply more sunlight in the evenings to enjoy the outdoors and get things done. Additionally, there may be emotional benefits, as we typically feel better with more daylight. Plus, additional hours of daylight can help save energy on a national scale. Less electricity is needed, as fewer lights are turned on as early in the evening...and with energy costs so high, even a small amount of savings is very welcome.
And brighter is safer--studies have shown that the DST shift reduces traffic accidents. An increase in accidents in the dark mornings is more than offset by the evening decrease in accidents, due to the increased visibility gained with more sunlight. Halloween is also arguably safer. Child pedestrian deaths are four times higher on Halloween than any other night of the year. This year, however, trick-or-treaters were able to spend an extra hour gathering treats while it was still light out. Candy manufacturers are happy too, as they've lobbied for years to have DST extended through Halloween.
A study by the US Law Enforcement Admin also determined that crime is consistently lower during DST, with violent crimes down as much as 10% to 13%. For many crimes, like mugging, darkness is a factor--so more light in the evening hours reduces these types of crimes.
And throughout its long history, Daylight Saving Time has had a remarkable and sometimes unexpected impact.
A man was actually able to avoid the draft for the Vietnam War using a Daylight Saving Time loophole. When he was born, it was just after midnight, DST. When he was drafted, he successfully argued that in his home state of Delaware, standard time--not DST--was the official time for recording births. So he was technically born on the previous date--which had a much higher draft lottery number - and he was able to avoid being drafted.
In September 1999, the West Bank was on Daylight Saving Time, while Israel had switched back to standard time. A group of West Bank terrorists prepared some timed bombs--but misunderstood the time change--and the bombs exploded early, killing the terrorists themselves, rather than the intended victims--two busloads of innocent citizens.
In the 1950s and 60s, each state and locality was permitted to choose start and end DST dates as they desired. During 1965, Minneapolis and St. Paul--which are considered one metropolitan area--didn't agree on start dates, and for a period of time, these Twin Cities had a one hour time change between them. And on one Ohio to Virginia bus route, passengers technically had to change their watches seven times in 35 miles!
To keep to their published timetables, Amtrak trains cannot leave a station before the scheduled time. So when the clocks "fall back" in the fall, all trains that are running on time actually stop at 2:00am--the official time of DST change--and wait one hour before resuming their routes. In the spring, the routes instantaneously become one hour behind schedule, but they just keep going and do their best to make up the time.
So Daylight Saving Time sure can have some unexpected impact.
In particular, be sure to double-check all of your electronic devices and confirm that the time is correct. Although you may be accustomed to your computer and maybe even your digital clock in your car automatically updating, the recent change of dates for Daylight Saving Time may require that these devices be manually changed, as they now may NOT be ready to update to the correct time on the correct date!
Paul & Ginger Conti CRS
REMAX Valley Properties
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]]>http://www.sanjose-california-realestate.com/weblog/index.php?entry=entry071105-1256332007-11-05T00:00:00Z2007-11-05T00:00:00ZWhy Even Experienced Home Buyers Make Costly Mistakes If you’re like most people, home financing…with all its hidden costs and games…can be a daunting and confusing event. And for about 80% of people out there, borrowing $100,000…$200,000…or even $500,000 or more is the largest financial transaction you will incur in your life.
Small mistakes can leverage themselves into big losses of money. That’s why you need to be armed to the teeth, not only with helpful knowledge, but with proven, helpful strategies and questions that will get you the very best mortgage for your situation for the absolute lowest cost available in the market.
And that’s why I created this report…to give you a number of helpful, straightforward tips for avoiding costly mistakes and getting the very best financing for your dollar.
Here are seven strategies (I call them “secrets” because so many home buyers disregard them when buying a home) you should consider when financing your home:
Secret #1: Clearly Understand How Much Financing You Can Afford
Like it or not, there are two guidelines bankers and mortgage lenders use to determine how much loan you can afford.
The first guideline is the Payment To Income Ratio. This guideline compares your income – or your total household income – to the amount of mortgage payment you’re considering.
To calculate the “payment” part of the formula, the lender will take the mortgage payment (principal + interest) and add to it Property Taxes and Insurance. Hence the term “PITI” (principal, interest, taxes, and insurance).
Usually lenders will loan up to 28% of your total household income.
But before you think you’re home free, there’s something else you need to know…
It’s called the Debt To Income Ratio. Debt refers to ALL the major monthly payments other than your mortgage payment (PITI). To arrive at this amount, the lender will consider…
Your car payment.
Your credit card debt and payments.
Any IRS liens or payments due.
Any other payments and debts you have (boat, second home, etc.)
Then, they’ll compare your total debt to your ability to make current payments with your new home loan added into the equation.
Now, here’s the “catch.” Each mortgage company sets different limits on your Debt To Income ratio, which is why it’s critically important to find a MOTIVATED LENDER!
Don’t follow the “canned” financial advice like you see on TV. Most of that advice is “rule of thumb,” and designed for the lowest credit rating and highest interest rates.
Think about this…
If you spend two or three days to find a loan that saves you $40,000 to $150,000 or more over its term, your time is WELL WORTH SPENT! Doing a little homework on your own will literally save you thousands over the term of your loan.
For the other 5 secrets email us at Homes@paulConti.com or call 408-691-7700
]]>http://www.sanjose-california-realestate.com/weblog/index.php?entry=entry070723-1840332007-07-24T00:00:00Z2007-07-24T00:00:00ZFORECLOSURE ALERT: ]]>http://www.sanjose-california-realestate.com/weblog/index.php?entry=entry070723-1824232007-07-24T00:00:00Z2007-07-24T00:00:00ZA Market Analysis A professional appraiser's opinion of a property's market value is based on the recent sales of similar homes in the neighborhood, and on the square footage and condition of the property. Different appraisers might come up with different figures. Even if all of them agreed on a value, there is no guarantee that you would receive that amount for your property.
An alternative to a professional appraisal is to ask a professional real estate agent for a written market analysis of your property. This analysis will include information about recent home sales in your neighborhood, as well as how those homes compare to yours. Real estate agents may provide this service with no charge or obligation. If you are still unsure of the value of your home, you may wish to pay for an appraisal.]]>http://www.sanjose-california-realestate.com/weblog/index.php?entry=entry070201-0948492007-02-01T00:00:00Z2007-02-01T00:00:00ZHot Market?http://www.paulandgloriaconti.com]]>http://www.sanjose-california-realestate.com/weblog/index.php?entry=entry070123-1053142007-01-23T00:00:00Z2007-01-23T00:00:00ZReal estate update Led by robust holiday shopping, retail sales increased 0.9% in December, the strongest showing since a 1.4% increase in July. For 2006, retail sales rose by 6%, a solid showing, but down from a 6.9% increase in 2005.
Despite improving retail sales, U.S. wholesale inventories leapt by 1.3% in November, triple the 0.4% rate of increase predicted by analysts. A broad-based accumulation of stockpiles ranging from cars to farm products to petroleum helped fuel the increase.
Following a dip in interest rates for the first time in five weeks, U.S. mortgage applications soared 16.6% in the first week of the new year (through January 5), the Mortgage Bankers Association (MBA) reported January 10. The MBA's survey covers approximately 50% of all U.S. residential loans.
The number of newly laid-off workers filing unemployment claims fell by 26,000 to 299,000 for the week ending January 5, the Labor Department said January 10. It marked the first time jobless claims had fallen below 300,000 since the week of July 22.
This week look for updates on the Producer Price Index on January 17 and the Consumer Price Index on January 18.]]>http://www.sanjose-california-realestate.com/weblog/index.php?entry=entry070121-0959142007-01-21T00:00:00Z2007-01-21T00:00:00ZReal Estate Info and other Great Tips and some funny Stuff Too.How To Make Yourself And
Your Family “Lightning Safe”
It can happen in any season. And its effects are potentially deadly. In 1998 alone, 44 reported lightning fatalities and more than 6,000 lightning injuries occurred in the United States.
Most people only associate lightning with summer thunderstorms, but lightning can occur any time of the year, including winter. More than 40 percent of deaths caused by lightning are in open areas; 18 percent occur under trees and 14 percent on boats.
The Insurance Information Institute says more than 21 percent of all homeowners’ insurance losses result from lightning and resulting fire. Here are a number of things you can do to protect yourself and your property from the devastating effects of lightning.
If you are outside:
1. Seek cover in a car, protected building, or find the lowest elevation spot in your surrounding area. Lightning usually strikes the highest point of the local area. If there is no shelter, stay away from tall objects. You’re safer crouching down in an open field than you are under a tree.
2. If you are in the water, get out immediately! If you are boating, get to shore. If that’s impossible, go inside the cabin or lie on the bottom of the boat, and don’t touch metal objects.
3. If you’re golfing or fishing, drop any metal clubs and rods. Do not stand in a small, isolated shed or other structure in an open area. Move away from a motorcycle, scooter, golf cart, or bicycle. Stay clear of wire fences, clotheslines, metal rails, or pipes.
4. If you feel your hair standing on end or your skin tingling, lightning may be about to hit you. Drop to your knees and make yourself into the smallest target possible.
5. Don’t assume you are safe if a thunderstorm appears to be far away. Lightning can bolt out of the edge of a storm and strike victims even if it isn’t raining yet. In fact, lightning has been known to strike from as far as 20 miles away!
If you are inside:
1. Do not use the telephone during a storm. Also, shut off electrical appliances such as TVs and stereos. Electric current cannot only surge through electrical outlets, but through cable TV and stereo wires.
2. Shut down your computer, but don’t stop there. Most lightning strike damage to computers doesn’t come through the electrical wires, but through the phone lines. And most surge equipment is helpless against it. If your computer has a modem, unplug the phone connection from your computer.
3. Stay away from open doors and windows. Also, stay away from stoves, metal pipes, and sinks. And since water conducts electricity, never take a bath or shower during a storm.
FUN STUFF
Bumper Stickers Seen On Cars…
• So Many Men, So Few Who Can Afford Me
• God Made Us Sisters, Prozac Made Us Friends
• If They Don’t Have Chocolate In Heaven, I Ain’t Going
• My Mother Is A Travel Agent For Guilt Trips
• If You Want Breakfast In Bed, Sleep In The Kitchen
• If We Are What We Eat, I’m Fast, Cheap and Easy
• I Used To Have A Handle On Life, But It Broke
]]>http://www.sanjose-california-realestate.com/weblog/index.php?entry=entry061212-1036532006-12-12T00:00:00Z2006-12-12T00:00:00ZSan Jose Bank Owned HomesSearch for a foreclosure in San Jose free with HotForclosuredHomes.com, the leading online resource for finding and buying bank owned homes. Whether you’re looking for a foreclosure in San Jose, you’ll find the hottest ones. We have them coming in every day.
Hot Bank Owned Properties]]>http://www.sanjose-california-realestate.com/weblog/index.php?entry=entry061115-1457522006-11-15T00:00:00Z2006-11-15T00:00:00ZHome Seller Tip #26 Buyers are pickier than they were a year ago when home prices were rising quickly. Currently, appreciation is flat, at best. Many buyers are concerned that prices are falling. So, their enthusiasm for paying huge prices regardless of the condition of the property has waned. Buyers are looking for value.
Getting a house fixed up for sale takes time and money. A good real estate agent can be an invaluable ally in this endeavor. In fact, you should consult with your agent before embarking on any projects to ensure that you make value-enhancing improvements.
THE CLOSING: Resist the temptation to show your home before it's ready. You could lose a prospective buyer who can't visualize how your house will look after the improvements are done.
Looking for a break today. Not at McDonalds! But
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