Lynne Pope

As a professional Realtor I study the market trends, homes and Mortgage information. This is absolutely urgent! Buyers need to know how this will affect the monthly payment on the home they want. The bottom price, the bottom of the market will be the difference in the loan package. If you are shopping above 629K then this info is critical to your purchase power.
We pay the top coaches just like every athlete in any major sport. Realtors who are serious about staying on top of the market, the industry are still getting coached. This article came to me from my Tom Ferry coaching group.
Author is ….Keith K AKadu LIC # 510-LO-31808

“Breaking NEWS!!!

First AGENCY JUMBO LOANS, drop dead funding date is December 15th.
What does this mean if your client has a loan above $417,000 to $567,500 get them closed before the 15th.
Why? The stimulus package comes to an end until the Obama’s financial advisors come up with a new plan.

Last big change in underwriting guidelines! Debt to Income ratios have been pulled back to 45% as a standard no matter what the computer system says. This is in full force December 15th.

How does this affect you and your clients. If you client who has a loan not funded after December 15th and was computer approved with a debt to income ratio above 45% stands the chance of having their loan declined. This is very important to protect your listings!!!!! Ask for updated approvals if your closing date is beyond the 15th. THIS IS A FANNIE AND FREDDIE RULING! Don’t let a uniformed loan officer tell you otherwise. Unless they are going to guarantee funding from their own pocket book!

I have also attached the National Matrix which reflects the new loan conforming loan limits in 2009, some areas have been increased so search for your state and county to make sure.

This is very very important to understand to protect seller and buyers!!!! ”

The awakening of the first time buyer has been cautious. There was a surge in April and early this month in home buying. The misleading fact of 1/2 of all sales have been REO or bank owned in our state is one thing but the south bay beach areas have few bank owned properties. The slowdown and lending crunch has affected prices. We have higher inventory and it takes longer to sell properties and there are price reductions that have to be factored in. The other BIG and GOOD factor is that these homes are a short drive to the beach. The glorious Pacific Ocean! This week we toured a new Bank Owned listing on Perkins in North Redondo Beach. We were excited that it was under 700K. Every agent that went on our agent thought it was a great deal. The interesting thing is that some of the listings have had to price accordingly. The new listing coming up down the street that is similar is in top condition, it is also in a block that has a preferred school district for higher performing student test scores. It will be priced slightly more than the bank owned for those 2 reasons. This is actually why some people are buying the other homes sometimes before the bank owned ones. Investors and out of the country buyers are out buying more than one property at a time. They LOVE LA! Canada, Korea, and Japan, residents, that I have met are visiting and buying.
I have a listing in Torrance with value built in of over 80K in upgrades. The electrical, plumbing, new windows and roof make it more desirable than a similar home without those updates. The sharp first time home buyer today is educated in real estate values and prices. They shop the internet and visit open houses.They don’t have to be told to get a lender although they may need to get an update from the lender they have on a regular basis. The rates are still fantastic.
bank owned Beach first time buyer preferred school district real estate values Redondo Beach reo student test scores Torrance

Jitters…first time home buyers and that magic word…Confidence!

The US Government is the headless horseman in charge of home ownership.

Did you ever jump rope at school? The 2 people holding the rope swing it around and around and you jump in. It takes practice. The first few times you get hit by the rope.
You watch others and it looks so easy. They show you that it is possible. But you think, how do I learn to do this without really hurting myself and embarrassment?

All this is to say -the neophyte is aware of the danger. The jitters of the bridegroom! It takes a lot of partying to slip on the collar…married.

Is the Realtor your party planner? “Trust us” and the purchase will work smoothly. The lender walks the bride down the aisle. A technical give away but we own your DNA. Escrow and Title are the legal entity - preacher - judge- just tying the knot! Feeling confident?

Is using a full service Realtor like going to the best schools, being in the best places, meeting the best people? Is using the discount company like going to Vegas- getting drunk and finding yourself married? It was so quick, you saved 2000 dollars but you felt it was not that special planned wedding, with the photo album and all the lovely memories.

Then, there is the investor. The guy who has been around a few times. This one only wants a good deal. He or she wants the house, that has been around. How long has it been on the market? Give me the old gal over there in the corner- she looks like some good bones! Yep- she is bank owned now, way past the short sale. Nobody wants her on the books anymore. The investor takes and rents it out. Where is the love?

What in the world is going to happen to the good old days? Those days when the plantation was humming along smoothly. The slaves worked for food and the landowner -was, is currently the USA. Financial crisis, world power, POWER = energy, influence whatever, is making some corrections. The Global war-ning. We are all working for food. Getting back to basics, leaving baby formula, leaving beef, leaving lead based paint, leaving carbon fuels, leaving DDT.

Remember the line in Joni Mitchell’s song..Give me spots on my apples…and they put up a parking lot!

Jitters…first time home buyers and that magic word…Confidence!

Todays financial headline on FED gets it….

 Toss away the LA times and read the real information here….plus the political

 http://www.inman.com/buyers-sellers/columnists/loubarnes/fed-gets-it-credit-crisis-trumps-inflation

They do. Worth your time: http://www.federalreserve.gov/, the minutes of the Aug. 5 meeting. Unusually short, clear and grim, two things stand out: They get the risk of credit-default spiral (shrinking credit, more defaults, less credit …), and that risk is greater than inflation. The FDIC sure as hell gets it, staring at a bank/collateral spiral.

1. Fannie Mae and Freddie Mac raised limits “late” in the game and the sub-prime could not have done the damage it did had they entered sooner..some say…what about you?

2.Is it good to refinance now and lower the cost of your mortgage?400Thousand have been helped

3. If you have a high debt to income ratio will that hurt or help? The government ways if it helps you then you have to share in the profit with the gov when you resell it.

3. First time home buyer tax credit of 7500? NO-It is a zero % loan and it has to be paid back.

4.Immediate new deductions on property taxes?

5. Is 2010 or 2111 the year of the pick up for Real Estate?

6. Will there be 10 years of unparalleled growth?

7. Can you get a loan?

8. Is California ahead or behind the curve?

9. Have you found a Realtor on Linkden or Facebook?

big problems. every week we have a mortgage update. More and more people are getting their  Helocs frozen- closed without any letter, call, email- zip-o-la nada…

Thats bad…but how about this…

the automatic payment you think you are making to that HELOC is also nada zip and your credit is melting faster than ice-cream at the beach. The agent in our office today had many stories about clients, family and even their own story. You have to have a nice chunk of equity to keep your Heloc or get it back when frozen. some people said 40%. One agent wrote checks out of her HELOC to stage a property, only to find out she had to cover the checks right then because the account is closed. No more credit card float.

It was nice while it lasted. It helped so many people in the swing loan area when they found the dream house and then listed the other house after close of escrow. Lots of homes were improved. In our case we finally got some income property!