Homes For Under $100 K In San Diego?

Is it true that you can find homes for sale in San Diego for under $100 K. HouseRebate.com Founder Brian Yui shows you where you can find homes in San Diego for less than $100 K

Fannie Mae Lifts 4-Property Limit for Investors

Investors around the country are cheering as Fannie Mae announced this week that they are lifiting the 4 property limit for investors.  Fannie Mae’s official announcement reads: 

“Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery.”

This is great news for experienced seasoned investors who will play an important role in the re-stabilization of the housing industry.  In Fact Fannie Mae avoids lending to first time investors, or investors who do not have proven track record of success.

So for their part Fannie Mae will begin lending to investors who have an interest in 5-10 properties, but the loans are not with out guidelines:

• 25 percent down payment on the investment property;
• Minimum credit score of 720;
• No mortgage payments late within the last 12 months;
• No bankruptcies or foreclosures in the last seven years;
• Two years of tax returns showing rental income from all rental properties;
• Six months of principal, interest, taxes and insurance reserves on each of the financed properties.

“Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery.”

To reduce fraud, Fannie Mae will now require all real estate investors to sign a form granting lenders permission to verify supplied tax returns against the official, IRS-filed version. This document is less commonly known as a 4506-T.

Senate Bill Raises The Conforming Loan Limit

Last week, the U.S. Senate passed the American Recovery and Reinvestment Act of 2009, with the final tab for the stimulus bill coming in at $787.2 billion.On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009.

The bill also increases the first-time home buyer credit from $7,500 to $8,000 mentioned in a previous blog post, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

Now that the stimulus package is approved and is on its way to President Obama for signature, it is our hope that Congress will turn its attention toward helping homeowners remain in their homes and will take immediate steps directed specifically at stemming the ongoing foreclosure crisis.

Your Bank and Your Hardships

Banks Don’t want to foreclose on your house! When a mortgage company forecloses on a property more often than not they lose money, and they lose even more when they have to take ownership of that property. The good news is that there are alternatives to foreclosure that benefit both the borrower and lender.

The bad news is that most borrowers are only a number, one of millions of other numbers, to their mortgage company. The truth is that most mortgage companies don’t need to or want to specifically help individual borrowers. Even though their financial success really relies on keeping borrowers out of foreclosure often their need to meet their numbers makes it hard for them to recognize the value of working with individual borrowers. Even though mortgage companies financial success depends on keeping borrowers out of foreclosure, mortgage companies are the largest owners of real estate in the world due to foreclosures.

Hardships are the Key to Getting A Lender’s Attention

Hardships are a borrowers best tool in convincing the lender that a loan modification or workout plan is in order. Here are some of the hardships that lenders will consider:

• Adjustable Rate Mortgage Reset- Payment Shock (uncommon, but more lenders will accept this in the future)
• Illness
• Loss of Job
• Reduced Income
• Failed Business
• Job Relocation
• Death
• Incarceration
• Divorce
• Marital Separation
• Military Duty
• Medical Bills
• Damage to Property (natural disaster or unnatural)

A free do-it-yourself modification kit is available at MBA Commercial .

 

A  free 24 hour recorded message explaining  loan modifications is available at 800-958-1952 .

YOU can negotiate with your lender to avoid foreclosure and KEEP YOUR HOME!

Loan Modification Agreement

A Loan Modification Agreement modifies the terms of your home loan, normally by lowering the minimum payment to something more manageable for the homeowner.

 

Remember that your lender DOES NOT want to acquire your home through a foreclosure so you have no reason to hesitate to contact your lender when you foresee mortgage trouble on you horizon or you start to fall behind.  Anytime you find yourself facing hardship you should contact your lender and ask for help.  Your modification terms might be temporary or for an extended period of time, but in any case your lender is extending you a courtesy because it is in their best interest.

 

As in the forbearance agreement, you have to demonstrate to your lender that once the Loan Modification is agreed upon you will be able to stay current with the new arrangement.  Remember that although it is true that your lender does not want to foreclose but your lender is also in business and they want to know that with this loan modification you will be a stable borrower and that you will no longer be a credit risk.

 If you are having trouble getting through to your lender, or if it seems that your lender is not willing to work with you, please contact MBA Commercial at once and our professionals will get right to work with you on getting you in touch with someone at your mortgage company. Visit MBA Commercial for More Information, or call Toll Free, 800-958-1952 and listen to our recorded message available 24 hours a day.

 

Nexr Week: Tips For Successfully  Negotiating Settlement With Your Lender

Fannie and Freddie Offering Homeowners An Early Holiday Gift

Troubled Mortgage Giants Fannie Mae and Freddie Machave decided to give struggling homeowners an early holiday gift, they have announced that suspend eviction on certain properties until after the holiday season while they work on their previously announced loan modification program.  The suspension applies to 10,000 borrowers with Fannie, and 6000 with Freddie in occupied, single-family or two-to-four unit properties whose foreclosure sales are scheduled between November 26 and January 9.  The lending giants announced that their loan modificationprogram has plans to relieve hundreds of thousands mortgages that are at least 90 days past due.

This voluntary plan would enable certain borrowers to have their loans modified and their payments set at no more than 38% of their monthly income.  Although Freddie and Fanniehold a small percentage of the troubled loans in the United States, government officials are hoping that other lenders will follow their lead and adopt their stance on loan modification programs.

Meanwhile Freddie and Fannie are trying to find buyers for their rapidly growing inventory of foreclosed homesthat totalled more than 28,000, for Freddie, at the end of the latest quarter, up from almost 12,000 last year.  Fannie reported a staggering 67,519 homes in their foreclosure inventory which is more than twice the number of foreclosures in thier inventory last year.

To View the listing of foreclosure homes in San Diego visit HouseRebate.com

San Diego Investors Coming Out Of The Woodwork

Rental prices are at 2008 pricing but the home prices are back to 2003 levels. You can achieve positive cash flow under these market conditions with 20% down. Really!!

This program works best for detached single family homes under $250K that can rent for up to $1800 per month. Check out our San Diego Real Estate best deals.

Check out this link for Hundred’s of  San Diego Detached single family homes for under $200,000
http://sandiego.houserebate.com/200khome

 

Look Here for San Diego Bargain Condominiums for under $100,000
http://sandiego.houserebate.com/100kcondo

 

We are finding overbid situations on the entry level homes by several investors.  The demand is out there!  If you like a property, consider buying now while the interest rates are still historically low.

 

To check the current rates, visit http://www.aimloan.com

How To Detect Foreclosure Scammers

Outwardly it can be hard to spot a foreclosure scam artist.  In fact most scam artists do their best to appear clean-cut, trustworthy, helpful and patient.  Their front companies often have names like Community Home Savers or Housing Helpers or some other altruistic name, and may even claim to be working as a not for profit organization.

Scam artists depend on “affinity marketing“, that is to say they claim to come from the same racial, social, or religious background as their intended victims.  They may use military terms and mannerisms and claim military service when trying to draw in military families, or may use religious terms or certain religious clothing or icons when targeting religious people, or in some extreme cases join a religious group to gain their trust.  Scam artists may also purport to represent a government program or service, or even offer money back guarantees or government aide.

The best way to spot a scammer though is using common sense and listening to yourself when you notice the red flags or the alarm bells go off.  Remember that most scammers prey on people who are in desperate situations and are looking for a quick solution or instant fix.  

Keep these Red Flags in mind when you are dealing with anyone who you suspect might be a foreclosure scammer. 

1. Asks for money upfront before providing any service;
2. Asks for payment only in the form of cash, cashier’s check, or wire transfer; 
3. Asks for a transfer of title or an interest in the property; 
4. Gives an unqualified promise to stop foreclosure or other assurances; 
5. Offers to buy a home for a price above its market value; 
6. Asks for something to be done immediately without delay; 
7. Asks for the homeowner to give a power of attorney; 
8. Asks for signatures on a grant deed or deed of trust; 
9. Asks for signatures without giving homeowner a lot of time to review the documents; 
10. Asks for signatures on a document that has lines left blank; 
11. Fails to provide copies of documents signed; 
12. Refuses or fails to provide an oral promise in writing; 
13. Instructs a homeowner to make mortgage payments to someone other than the lender; or
14. Instructs a homeowner not to discuss the situation with the lender, housing counselor, accountant, attorney, family, friends, or others.

 Next week: How Foreclosure Scams Work

Visit HouseRebate.com to learn more about San Diego Foreclosures.

EMERGENCY ECONOMIC STABILIZATION ACT MAY BRING RELIEF TO STRUGGLING REAL ESTATE MARKET

The Emergency Economic Stabilization Act (EESA) also known as the $700 Billion Federal Bailout plan was enacted on October 3, 2008 and will benefit many San Diego homeowners. This infusion of cash to the lending market will promote the mitigation of foreclosures through loan modifications and slow the inflow of foreclosed or bank owned homes in the market place. The decline in foreclosures will help to stabilize falling home values in San Diego which is being driven by the plethora of San Diego Foreclosures.

One feature of the act that benefits taxpayers directly is that many defaulting homeowners will now be able to keep their homes. Another feature of the bill will extend the tax break to homeowners that lose their homes who had a portion of the debt forgiven. The debt forgiveness on home loans under the Mortgage Forgiveness Debt Relief Act of 2007 will be extended until Dec. 31, 2012.

One feature of the act that benefits taxpayers directly is that many defaulting homeowners will now be able to keep their homes.

California taxpayers recently received similar tax breaks on their California State taxes. On September 25, 2008, California Governor Arnold Schwarzenegger signed Senate Bill 1055 into law to offer similar tax relief for debt forgiveness relating to foreclosures. The bill will cover forgiven mortgage debt discharged in 2007 and 2008 however it may need to be amended in the future to keep pace with the extended Federal date of December 31, 2012. The Federal Maximum of $2,000,000 is significantly higher that the $800,000 limit for California. California also has a maximum income exclusion of $250,000.

DEED IN LIEU OF FORECLOSURE

An alternative to foreclosure that can benefit both Homeowners and Lenders

Due to tough economic times, an increasing number of property owners are facing a mortgage foreclosure. An option in some cases is to offer the lender a deed in lieu of foreclosure instead of a short sale or foreclosure, but what is a deed in lieu of foreclosure and how does it work?

WHAT IS A DEED IN LIEU OF FORECLOSURE?

A deed in lieu of foreclosure is a process in which the borrower voluntarily transfers all interest in real property to the lender to satisfy a loan obligation in order to avoid foreclosure proceedings.

DEED IN LIEU OF FORCLOSURE AND THE LENDER

From the lender’s perspective, there are several advantages of accepting a deed in lieu of foreclosure.

• Legal fees and processing time are reduced compared to traditional foreclosure.
• Faster disposition reducing the risk of property devaluation and allowing the sale of the property sooner.
• If the property is under construction and financed by a construction loan, a deed in lieu of foreclosure can prevent the delay of work.

Alternately, disadvantages to the lender in a deed in lieu of foreclosure, compared to a traditional foreclosure, are evident with the retaining of junior liens, unlike in traditional foreclosure. Therefore, the borrower may not have the legal right to hand over the property. The lender has to decide if it is advantageous to pay the junior lien before entering into the deed in lieu of foreclosure process. In addition, the borrower could later take action to set the conveyance aside. Lastly, other creditors of the borrower could question the legality of the conveyance, which could jeopardize the ability for the lender to process any claims against the borrower.

DEED IN LIEU OF FORECLOSURE AND THE BORROWER

As for the borrower, by volunteering a deed in lieu of foreclosure, they can…

• Protect their credit from further damage.
• Avoid a deficiency judgment.
• Prevent the recording of a notice of default against their name if they offer the deed in lieu of foreclosure as soon as possible.

A major disadvantage to the borrower is that they will not be able to receive any profits from the sale of the property by the trustee.

A deed in lieu is a better choice for homeowners who have a minimal amount of equity in their property.

IMPORTANT THINGS TO REMEMBER ABOUT A DEED IN LEIU OF FORECLOSURE

Voluntarily offering a deed in lieu of foreclosure to a lender does not necessarily cancel the note and deed of trust. Both parties should sign a written agreement that clearly outlines the status of the debt and if the borrower still needs to pay the lender additional fees.

• It is also important to note that the lender cannot have a deed in lieu of foreclosure held by escrow during the transfer of a loan in the case of judicial foreclosure when a borrower defaults.
• It is in violation of the law if a deed is lieu is mandatory when preparing the mortgage loan because it denies the borrower’s rights of redemption. The borrower must voluntarily submit the deed in lieu to the lender and the lender cannot force the borrower into such a transaction.
• The borrower must not file a deed in lieu of foreclosure without the lender’s knowledge, because it will not release them from the responsibility of the note and deed of trust. The use of a deed to transfer title is unacceptable unless the lender approves it. The lender can reject the transfer of title by recording a notice of non-acceptance in such circumstances.

Homeowners facing foreclosure, who have little equity in their homes, may find that a Deed In Lieu Of Foreclosure is an acceptable alternative that works to protect their credit rating from further damage. Lenders may find a Deed In Lieu of Foreclosure an acceptable alternative to foreclosure proceeding saving them valuable time and money in court costs and fees.