Recent Posts
FHA to Increase MIP
The Federal Housing Administration is increasing its annual mortgage insurance premium (MIP) one quarter of one point on all 15-year and 30-year mortgages backed by the agency. This change will effect FHA loans issued on or after April 18. On loans with amortization terms greater than 15 years, the FHA’s annual mortgage insurance premium will increase to between 110 and 115 basis points. For loans with amortization terms of 15 years or less, the annual premium is set to rise between 25 and 50 basis points.
What does this mean to homebuyer’s? After the transition, a borrower holding a 30-year, fixed FHA-insured loan valued at $163,000 will be paying $151 per month in premiums, compared to $118 under the current rates.
Just Listed
Just Listed- 3 bed /3 ba 328 Smuggler Cove, Camarillo. Listed at $238K MLS #S688196. Please call Midas Realty Group for additional information or to schedule a showing.
First Time Home Buyer Perks
Did you know IRA owners can withdraw up to $10,000 as a lifetime credit penalty-free (but not tax-free) for the purchase of a first home. This means you and your spouse together can withdraw up to $20,000 (as long as each of you pulls $10,000 from your individual accounts). It also means that your relatives can raid their own IRAs penalty-free to make a gift to you for a first-time home purchase.
How Does State Senate Bill 458 Affect Homeowners?
I had been asked recently about SB 458, and how it would benefit a homeowner considering a short sale. In a nutshell, Gov. Brown signed SB 458 into law July, 2011. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans. Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens. The signing of this bill was a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference. For information on short sales and the qualifications, give us a call at 800-546-2289. For more specific information on tax consequences of a short sale please consult a tax expert.
What lenders do we work with on Short Sales?
Over the years, we have gained experience dealing with many lenders in working with out clients on short sales. True, some lenders seem to have a more streamlined process, but all lenders have the same basic requirements for approval. Fortunately, we are well versed in the short sale process so our clients usually have an edge when we represent them. A list to some of the lenders with which we are familiar can be viewed here SHORT SALE LENDERS If the list is updated, and if your lender is not on the list, it may be a servicing company for one of these lenders or perhaps a credit union. Give us a call at 800-546-2289 and ask about our experience.
Listed Short Sale vs. Approved Short Sale
Many clients have asked me what the difference is between a property that is listed as a short sale vs. an approved short sale- or a short sale already approved by the current lienholder. A property listed as a short sale is a listing priced by the homeowners and the listing agent. List price may be at current market or even below market pricing in order to attract offers. The property may or may not be approved for a short sale by the current lender(s) and the price may or may not be approved as well. Prior to being approved, the current lender will order an appraisal or BPO (Broker Price Opinion) to determine current value for themselves, and they will not rely on the list price.
An approved short sale is a listing where the bank has already agreed to allow the homeowner to sell the property at a price less that what is currently owed (a short sale). If the property has already been approved for a short sale, the time frame from offer to close is typically shorter than on an unapproved short sale. Also, the list price may already be approved as well.
If you have additional questions about buying a short sale, give us a call at 800-546-2289.
Just Sold!
- Yorba Linda Short Sale
Just closed escrow today on a short sale listing at 5870 Via Santana, Yorba Linda. This property had a first and a second mortgage with Bank of America, and the homeowners qualified for HAFA incentives. If you or someone you know needs assistance with a short sale, give us a call at 800-546-2289.
Midas Realty Group- Blog and News
Visit the Midas Realty Group blog for latest local news and Southern California real estate information. For answers to pressing questions or for immediate help, give us a call at 800-546-2289 or send us an email to info@midasrealtygroup.com
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