When it comes to Short Sales, Wachovia Does it Right

If you have not heard about short sales yet in this transitional market, here is a brief overview:

 A short sale is when a homeowner sells the property for less than the current mortgage. For example if you purchased a home 3 years ago for $900,000 and based on the current market conditions you can only sell for $750,000, you are “selling short”. The terminology is similar to the stock market concept of selling stocks for less than they were purchased.

 

The concept is pretty basic, but the execution of short sales can be anything but. You the seller may be willing to walk away from the property, but in these scenarios, the banks holding the loan must also get involved and this is were it can get complicated. The banking institutions must approve the short sale before escrow can even begin. This approval process can be excruciatingly slow in some instances. I have seen some approvals take upwards of 8 months. 8 months is a long time and essentially by taking this much time, the buyers who initially came to the table have often long ago found something else and now you have a property that has been stagnating on the market for 8 months. Typically these properties sell for much less than they would have if the approval process was say 2 weeks instead of months.  

Every bank seems to have a different process for dealing with short sales and honestly many really don’t have it down. One institution that has is down is Wachovia. They have streamlined the process and have the players in place to allow approvals for the short sale to occur even before the buyers come to the table.  There is a local group, dedicated to short sales, and these transactions do not differ much from a “normal” transaction where the seller is not selling the property short. This local group will actually meet with the homeowner and determine if a short sale is even viable before coming to the marketplace. Not only does this save the homeowner a lot of time and headache is also ensures that any buyers that do come to the table will not likely walk away due to overly lengthy short sale approval process. This also helps in the marketing of the property from the Real Estate Agent view point. A short sale that can close in a typical escrow period is a short sale is a great marketing point for the property.

If you are in a situation where a short sale is your only viable option and you have a Wachovia loan, you are a step ahead of the competition.

Banks Taking Loan Modifications Further

In an article from the Wall Street Journal, banks and loan investors are starting to bit the bullet and lower the principal due on home mortgages for some borrowers. Loan modifications typically involved only a temporary reduction in the interest rate of the loan or an modification of the time period the loan is due. Part of this due to the Obama administration encouraging banks to help keep homeowners in their homes. Part of this economic plan has provided incentives to banking institutions to find solutions to help homeowners. At the same time, banks now have more flexibility to modify loans because of their success in stabilizing their balance sheets and, in some cases, raising fresh capital. Banks can afford “to take the pain up front,” said Kevin Fitzsimmons an analyst at Sandler O’Neill & Partners LP in New York. “If they want a legitimate chance of salvaging something out of the loans, they are better off taking the loss now.”

It will be interesting to see if the banks are more agressive about principal reductions, along with loan modifications. In the Bay Area many homeowners are in homes that have, in some cases, lost 50%-60% of their value from the frenzy back in the early to mid 2000’s.

It could also have a stabilizing effect on the real estate market. If homeowners are able to neogotiate affordable payments, this could potentially help to reduce the number of foreclosures and short sales in the marketplace.

What every buyer and seller needs to know about appraisals in today’s market

The real estate market in Oakland right now can feel pretty schizophrenic right now. There are homes selling in days with multiple offers and others are sitting languishing on the market. The portion of the market that appears to be the most active is the first time home buyers in the lower price points. Many of the buyers are utilizing FHA financing that allows them to put 3.5% down and are also being more conservative about the price point where they are looking.

Right now the market for first time home buyers is brisk. There are lot of properties on the market, but the reality for many of the first time home buyers using FHA financing, purchasing a bank owned property with lots of deferred maintenance is just not an option. There are specific guidelines for FHA financing that requires the property to meet minimum requirements of health and safety before the loan can fund. These leaves a lot of the bank owned properties out of the running.

I am currently working with a buyer using FHA financing. We ran into competition on every house that she was interested in and were outbid on every offers submitted. Finally after submitting a backup offer we were in contract. Things are moving forward and then the appraisal… Even though this property was on the market for only 1 day, and we actually were the back up offer for the property, the property appraised for $70,000 less than the offer price.

The difficulty with appraisals is the appraisers are required to look at the past. What has sold in the last 3-6 months and in this changing market, the appraisals do not always reflect the reality of the current market. In addition the lending community has changed its guidelines to become much more conservative than in years past.

There are solutions to the problem, but typically either the buyer or the seller ends up not being too happy about the situation. The buyer can bring cash to the table to make up the difference. For example if the buyer offered $450,000 for the property but the appraisal came in at $400,000 the buyer would bring $50,000 to escrow to make up the difference between the offer price and the appraisal price. Often times this is not even a viable option.

The other option is the seller could agree to adjust the price from the offer at $450,000 to $400,000. This is usually not a great option for the seller.

One solution is for the buyer and seller to meet in the middle with a price reduction and the buyer bringing some money to the table.

Another option is the buyer and seller agree to call it quits and the buyer moves on and the seller tries to sell to another buyer.

Every situation and every house and every process of buying and selling will be different. It is important to be aware of all the potential issues, take deep breath and see what the best and most viable solution(s) are.

Stimulus is helping economy, U.S. budget experts say

 

Tuesday, Aug 25, 2009 8:19PM UTC

By Andy Sullivan

WASHINGTON (Reuters) – The $787 billion stimulus package passed in February will fuel a recovery in the moribund U.S. economy this year, Congress’ non-partisan budget watchdog said on Tuesday.

“Economic activity will begin to rebound in the second half of 2009, largely the result of fiscal stimulus,” the Congressional Budget Office said in its assessment of the federal budget and U.S. economy.

The stimulus has become a political hot potato amid record budget deficits and public concern over federal spending.

Congressional Republicans, who voted overwhelmingly against the stimulus package, have portrayed it as a pork-laden boondoogle that has done little to counter the effects of the worst economic downturn since World War Two.

Senate Minority Leader Mitch McConnell said the stimulus money should be diverted to reduce the budget deficit, which the White House and the CBO estimate will reach a record $1.6 trillion for this fiscal year that ends on September 30.

Democrats, with an eye on next year’s midterm congressional elections, have been eager to highlight the effects of the stimulus money as it makes its way to the public.

“The Recovery Act, even while it added to the short-term deficit, staved off catastrophe and is bringing this recession to an end,” House Majority Leader Steny Hoyer said after the CBO released its report.

The government had paid out about $80.9 billion in stimulus funds as of August 14, according to the White House.

The stimulus act’s impact on the economy will grow through the end of the year and peak in the first half of 2010, the CBO said, though estimates are difficult because there is no way to know for sure how the economy would have performed without it.

The stimulus will boost gross domestic product between 1.4 percent and 3.8 percent in the fourth quarter of 2009 and between 1.1 percent and 3.4 percent in the fourth quarter of 2010, the budget experts said. By the end of 2013 its effect will be minimal.

The package will cost the government a total of $185 billion this fiscal year when the cost of temporary tax cuts is added to the spending, CBO said.

Most of the spending so far has been in four areas, CBO said: Medicare health coverage for the poor; unemployment benefits; one-time $250 payments to retirees; and grants to states for education and other government expenses.

Spending on housing and transportation projects is going more slowly than anticipated, CBO said.

(Editing by Vicki Allen)

 

 

 

 

Housing Market Looking Better in The San Franciso East Bay

Yes, the housing market has rarely looked better

The combination of affordable home prices, historically low mortgage rates, and a first-time home buyer tax credit that’s set to expire in less than three months has created the perfect storm of sorts for buyers who’ve been sitting on the fence, waiting for the market to recover.

KEEP THIS IN MIND

• Last week, Standard & Poor’s reported that its S&P/Case-Shiller U.S. National Home Price index rose from the first quarter to the second, the first quarter-to-quarter increase in three years. Its index of 20 major cities also rose, with only two areas reporting declines. This data suggest that home prices may have reached bottom during the second quarter, and have now begun to rise. In California, July marked the fifth consecutive month of month-to-month increases in the state’s median price.

• Real estate prices nationally have declined approximately 30 percent from their 2006 peak and are beginning to show signs of increases—an indicator that prices aren’t likely to go much lower, according to some housing analysts.

• The inventory of unsold homes rose 7.3 percent nationwide in July, according to the NATIONAL ASSOCIATION OF REALTORS®. In California, inventory levels declined to 3.9 months, from 6.9 months a year ago, and are well below the long-run average. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

• Buyers sitting on the fence should note that the federal tax credit of up to $8,000 expires at midnight on Nov. 30, 2009. With mortgage loans taking longer to close than in years past, buyers should start working with a REALTOR® now to ensure they find the right house for their needs, and close escrow by the deadline.

• Homeownership provides many benefits, including security, pride of ownership, a sense of community, and decent investment returns as a bonus. Those thinking of purchasing a home should consider these benefits when making their decision of whether or not now is the right time to buy a home.

To read the full story, please click here: http://online.wsj.com/article/SB10001424052970204047504574386802310702622.html

Bay Area home sales hit 4-year high; median price up again

Data Quick indicatest that homes sales are up 24% in Alameda Country. Read the article at: http://www.dqnews.com/Articles/2009/News/California/Bay-Area/RRBay090821.aspx

La Jolla, CA.—-Bay Area home sales rose last month to the highest level for a July in four years as deals above $500,000 continued to accelerate. The median sale price climbed above the prior month for the fourth consecutive month, lifted by the combination of more high-end transactions and fewer sales of lower-cost, lender-owned foreclosures, a real estate information service reported.

The median price paid for a home in the nine-county region rose to $395,000, up 12.2 percent from $352,000 in June, but down 16.0 percent from $470,000 in July 2008, according to MDA DataQuick of San Diego.

Although last month’s median was 36.2 percent higher than the current cycle’s low of $290,000 in March this year, it was still 40.6 percent below the peak $665,000 median reached in June and July of 2007.

The median’s $43,000 gain between June and July was mainly the result of a shift toward a greater portion of sales occurring in higher-priced neighborhoods. The trend has been fueled this summer by several factors, including: More distress in high-end areas, leading to more motivated sellers; more buyers sensing a bottom could be near; and increased availability of larger home loans, which had become more expensive and far more difficult to obtain after the credit crunch hit two years ago.

Loans above $417,000 accounted for 30 percent of Bay Area home sales last month – the highest since they represented 31.9 percent of sales in August 2008. Before the August 2007 credit crunch, such “jumbo” loans over $417,000 represented more than 60 percent of sales.

In another sign of a gradual comeback in home financing, the percentage of Bay Area homes purchased last month with an adjustable-rate mortgage rose to 6.6 percent – up from a record low of 3.0 percent in January 2009. The median sale price for homes purchased with those adjustable-rate loans last month was $766,500, while the median loan amount was $523,500. Adjustable-rate mortgages averaged about 61 percent of all Bay Area purchase loans this decade up until the credit crunch, after which they began to dry up quickly.

Sales of $500,000-plus existing single-family detached houses rose to 35.6 percent of all house resales last month, up from 34.1 percent in June and up from a low this year of 22.7 percent in January. Last month’s $500,000-plus sales were the highest since they were 38 percent of sales last September.

As high-end sales have taken off in recent months, sales of foreclosures in less-expensive inland areas have tapered off. Last month 34.2 percent of the Bay Area homes that resold were foreclosure resales – homes resold in July that had been foreclosed on in the prior 12 months. Last month’s foreclosure resale level was the lowest since it was 33.3 percent in July 2008. Foreclosure resales peaked at 52 percent of all Bay Area resales in February this year.

The drying up of the lower-cost foreclosures helps explain why July sales of sub-$300,000 existing single-family houses dropped to 37.8 percent of house resales. That was down from a high this year of 48.9 percent of resales in March.

“In the San Francisco Bay Area and across California we continue to see the market moving gradually back toward a more normal balance of sales across all price ranges. The high end of the market finally has a pulse and that has led to a swift rise in the median sale price. It’s the opposite of what we saw two years ago, when the credit crunch slammed the brakes on jumbo lending and sales of more expensive homes screeched to a halt. That triggered a near free-fall in the median sale price,” said John Walsh, MDA DataQuick president.

“Evidence is mounting that in some areas we’ve approached at least a soft bottom for home prices,” he said. “But we continue to view that possibility with an abundance of caution, given all of the uncertainty over future foreclosure inventories and ongoing job cuts. The market remains vulnerable.”

A total of 8,771 new and resale houses and condos sold in the nine-county Bay Area last month. That was up 1.5 percent from 8,664 in June and up 15.6 percent from 7,586 in July 2008.

Although last month’s sales were the highest for the month of July in four years, and the highest for any month since August 2006, they were still 7.8 percent lower than the average of 9,512 homes sold during the month of July going back to 1988, when DataQuick’s statistics begin. July sales have varied between a low of 6,666 sales in 1995 and a peak of 14,258 in 2004.

San Diego-based MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Because of late data availability, sales counts were estimated in Alameda and San Mateo counties.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $1,739 last month, up from $1,585 the previous month, and down from $2,359 a year ago. Adjusted for inflation, current payments are 33.7 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 51.0 percent below the current cycle’s peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity is off its recent peak but remains high by historical standards, while financing with adjustable-rate mortgages is edging higher but remains low, as does financing with multiple mortgages. Down payment sizes are stable and non-owner occupied buying activity is above-average in some markets, MDA DataQuick reported.

What Does a Buyer of Tenant Occupied In Oakland, CA Need To Do?

Tenant occupied property can be challenging and can require some patience. I am sure that your Realtor information you about Measure EE which is the rent control ordinance for the City of Oakland.

 The seller, according to the ordinance, cannot evict a tenant for the sale of a property and thus it becomes the buyer’s responsibility to coordinate with the tenant.

Since the tenants have a lease that expires in November, legally they have a right to stay in the property until that time and then the lease would automatically convert to a month to month lease. At this time you would have the right to give notice to the tenants for owner occupation of the property.

A few things you will want to make sure to get from the sellers of the property is a copy of the lease as well as information from the seller regarding the type of deposit that the tenants submitted with the rental agreement. You will be responsible for returning the deposit to the buyers.

The City of Oakland has a rent control board and you may want to consider calling them to discuss your situation and what your options so you can make sure you are in accordance with Measure EE. Here is the link to their website with their contact informationmhttp://cedaonline.oaklandnet.com/rentadjustmentsite/index.htm

Here is a link to Measure EE so you can read through it if you have not had a chance yet: http://cedaonline.oaklandnet.com/rentadjustmentsite/ordinance/index.htm

Fabulous Mid Centry Home in Sequoyah Highlands Open Sunday 2-5 PM

<!–HTMLSTART–><div style=”padding:0 0px 30px 30px ;  padding-top:20px; font:12px verdana; padding-bottom:20px; background-color:#ECE8C5; text-align:center”> <table cellpadding=”0″ cellspacing=”0″ style=”width:780px; border:solid 1px #000000; text-align:left; “><tr><td style=”background-color:#38362A; color:#ffffff; padding-top:10px; padding-bottom:10px; padding-left:5px; padding-right:5px”><div style=”font-family:arial ; font:16px  verdana; font-weight:bold ; “>224 Inverness</div><div style=”font-family:arial ; font:12px verdana”>Oakland, CA 94605</div></td><td style=”background-color:#38362A; color:#ffffff; padding-top:10px; padding-bottom:10px; padding-left:5px; padding-right:5px; vertical-align:bottom; text-align:right;”><div style=”font-family:arial ; font:12px verdana; font-weight:bold ;”>For Sale $575,000</div></td></tr><tr><td colspan=”2″ style=”background-color:#85815E; color:#ffffff; padding:10px”><table id=”tblImage” style=”width:100%; background-color: #ffffff; border-right: #646345 2px solid; 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color:#ffffff; font:12px verdana;”><tr><td style=”line-height:150%; vertical-align:top”><div id=”divHomePageMessage” style=” color:#ffffff; font:12px verdana; font-weight:bold ; padding-bottom:10px “>Charming Mid Century Rancher In Sequoah Heights</div><span style=”float:left; padding-right:10px; padding-bottom:10px “><span style=”padding-right:10px; border-right: #9E9B7A 1px solid; color:#ffffff; font:12px verdana;”><table cellpadding=”0″ cellspacing=”0″><tr><td style=”white-space:nowrap; padding-top:2px;  padding-right:5px; color:#ffffff; font:12px verdana;”>Bedrooms:</td><td style=”white-space:nowrap; padding-top:2px; padding-right:10px; color:#ffffff; font:12px verdana;”>2</td></tr><tr><td style=”white-space:nowrap; padding-top:2px;  padding-right:5px; color:#ffffff; font:12px verdana;”>Bathrooms:</td><td style=”white-space:nowrap; padding-top:2px; padding-right:10px; color:#ffffff; font:12px verdana;”>2</td></tr><tr><td style=”white-space:nowrap; padding-top:2px;  padding-right:5px; color:#ffffff; font:12px verdana;”>Area:</td><td style=”white-space:nowrap; padding-top:2px; padding-right:10px; color:#ffffff; font:12px verdana;”>Sequoyah Heights</td></tr><tr><td style=”white-space:nowrap; padding-top:2px;  padding-right:5px; color:#ffffff; font:12px verdana;”>Style:</td><td style=”white-space:nowrap; padding-top:2px; padding-right:10px; color:#ffffff; font:12px verdana;”>Traditional Single Level</td></tr><tr><td style=”white-space:nowrap; padding-top:2px;  padding-right:5px; color:#ffffff; font:12px verdana;”>Square Footage:</td><td style=”white-space:nowrap; padding-top:2px; padding-right:10px; color:#ffffff; font:12px verdana;”>1,539</td></tr><tr><td style=”white-space:nowrap; padding-top:2px;  padding-right:5px; color:#ffffff; font:12px verdana;”>Lot Size:</td><td style=”white-space:nowrap; padding-top:2px; padding-right:10px; color:#ffffff; font:12px verdana;”>7592</td></tr><tr><td style=”white-space:nowrap; padding-top:2px;  padding-right:5px; color:#ffffff; font:12px verdana;”>Year Built:</td><td style=”white-space:nowrap; padding-top:2px; padding-right:10px; color:#ffffff; font:12px verdana;”>1961</td></tr></table></span></span>Stunning Single Level Home In Sequoyah Heights just minutes from the Sequoyah Heights Country Club and the Oakland Zoo.  This Mid Century rancher has been meticulously maintained. Bright, sunny and spacious this wonderful home provides a large patio for entertaining with filtered views of the Bay and San Francisco. Many upgrades to the property included new heater, new hot water heater, newer roof, encapsulated crawl space, newly landscaped front and rear yard and much more! <br /><br />Not an REO or Short Sale!! Move in ready home will qualify for FHA financing. </td><td  style=”vertical-align:top;”><table cellspacing=”0″ cellpadding=”0″><tr><td>&nbsp;&nbsp;</td><td style=”white-space:nowrap; border-bottom: #9E9B7A 1px solid; color:#ffffff; font:12px verdana; text-transform:capitalize; padding-top:5px; padding-bottom:5px”><a id=”rptrMenu_ctl01_lnkMenuItem” href=”http://www.224inverness.com/” style=”color:#ffffff; text-decoration: none”>Home</a></td></tr><tr><td>&nbsp;&nbsp;</td><td style=”white-space:nowrap; border-bottom: #9E9B7A 1px solid; color:#ffffff; font:12px verdana; text-transform:capitalize; padding-top:5px; padding-bottom:5px”><a id=”rptrMenu_ctl02_lnkMenuItem” href=”http://www.224inverness.com/wfPropertyDetails.aspx” style=”color:#ffffff; text-decoration: none”>Full Details</a></td></tr><tr><td>&nbsp;&nbsp;</td><td style=”white-space:nowrap; border-bottom: #9E9B7A 1px solid; color:#ffffff; font:12px verdana; text-transform:capitalize; padding-top:5px; padding-bottom:5px”><a id=”rptrMenu_ctl03_lnkMenuItem” href=”http://www.224inverness.com/wfPhotoGallery.aspx” style=”color:#ffffff; text-decoration: none”>Photo Tour</a></td></tr><tr><td>&nbsp;&nbsp;</td><td style=”white-space:nowrap; border-bottom: #9E9B7A 1px solid; color:#ffffff; font:12px verdana; text-transform:capitalize; padding-top:5px; padding-bottom:5px”><a id=”rptrMenu_ctl04_lnkMenuItem” href=”http://www.224inverness.com/wfPrintBrochure.aspx” style=”color:#ffffff; text-decoration: none”>Print Brochure</a></td></tr><tr><td>&nbsp;&nbsp;</td><td style=”white-space:nowrap; border-bottom: #9E9B7A 1px solid; color:#ffffff; font:12px verdana; text-transform:capitalize; padding-top:5px; padding-bottom:5px”><a id=”rptrMenu_ctl05_lnkMenuItem” href=”http://www.224inverness.com/wfPropertyDocuments.aspx” style=”color:#ffffff; text-decoration: none”>Property Documents</a></td></tr><tr><td>&nbsp;&nbsp;</td><td style=”white-space:nowrap; border-bottom: #9E9B7A 1px solid; color:#ffffff; font:12px verdana; text-transform:capitalize; padding-top:5px; padding-bottom:5px”><a id=”rptrMenu_ctl06_lnkMenuItem” href=”http://maps.google.com/maps?q=224+Inverness, Oakland, California 94605″ target=”_blank” style=”color:#ffffff; text-decoration: none”>Property Map</a></td></tr><tr><td>&nbsp;&nbsp;</td><td style=”white-space:nowrap; border-bottom: #9E9B7A 1px solid; color:#ffffff; font:12px verdana; text-transform:capitalize; padding-top:5px; padding-bottom:5px”><a id=”rptrMenu_ctl07_lnkMenuItem” href=”http://nces.ed.gov/globallocator/index.asp?search=1&amp;zipcode=94605&amp;State=CA&amp;city=Oakland&amp;miles=&amp;itemname=&amp;sortby=city&amp;School=1&amp;PrivSchool=1&amp;College=1&amp;Library=1” target=”_blank” style=”color:#ffffff; text-decoration: none”>Area Schools</a></td></tr><tr><td>&nbsp;&nbsp;</td><td style=”white-space:nowrap; border-bottom: #9E9B7A 1px solid; color:#ffffff; font:12px verdana; text-transform:capitalize; padding-top:5px; padding-bottom:5px”><a id=”rptrMenu_ctl08_lnkMenuItem” href=”http://www.224inverness.com/wfScheduleAShowing.aspx” style=”color:#ffffff; text-decoration: none”>Schedule a Showing</a></td></tr><tr><td>&nbsp;&nbsp;</td><td style=”white-space:nowrap; border-bottom: #9E9B7A 1px solid; 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background-color: #ffffff; border-right: #646345 2px solid; border-bottom: #646345 4px solid;  ” cellpadding=”0″ cellspacing=”5″><tr><td style=”background-color: #CCE3F3;”><table style=”width:100%”><tr><td style=”vertical-align:top; color:#000000″><table><tr><td id=”rptrContact_ctl00_cellImage” style=”vertical-align:top”><a id=”rptrContact_ctl00_linkAgent” href=”http://www.224inverness.com/wfContactMe.aspx”><img src=”http://www.224inverness.com/wfRenderResource.aspx?data=44a02065-2e8f-435f-99d5-e1546a7cad4a&type=imagethumbnail” id=”rptrContact_ctl00_imgAgent” style=”border:0px” alt=”Lisa Cartolano” /></a></td><td style=”vertical-align:top; white-space:nowrap”><b>Lisa Cartolano&nbsp;E-Pro<br />Alain Pinel Realtors</b><br /><table  cellspacing=”0″ cellpadding=”2″><tr><td><b>Office:</b></td><td>510.213.1139</td></tr><tr><td><b>Fax:</b></td><td>510.339.3747</td></tr><tr><td><b>Email:</b></td><td><a id=”rptrContact_ctl00_rptContactDetails_ctl03_linkValue” href=”mailto:lcartolano@apr.com” target=”_blank”>lcartolano@apr.com</a></td></tr><tr><td><b>Website:</b></td><td><a id=”rptrContact_ctl00_rptContactDetails_ctl04_linkValue” href=”http://www.LisaCartolano.com” target=”_blank”>www.LisaCartolano.com</a></td></tr></table></td></tr></table></td><td style=”text-align:right”><table id=”logoTable” style=”width:100%”><tr id=”rowImageLogo”><td align=”center”><img id=”imgLogo” src=”http://www.224inverness.com/wfRenderResource.aspx?data=b7fe7cee-2df7-4204-9262-b361d3e53354&amp;type=logo” border=”0″ style=”padding-bottom:5px;” /></td></tr><tr><td align=”center”><img id=”imgRealtor” src=”http://www.224inverness.com/Images/Realtor.gif” border=”0″ />&nbsp;<img id=”imgEqualOpp” src=”http://www.224inverness.com/Images/equalOpp.gif” border=”0″ />    </td></tr></table></td></tr></table></td></tr></table><div style=”font-family:arial ; font:10px  verdana; font-weight:bold; text-align:center “>All information, regarless of source including square footage and lot size is deemed reliable but is not guaranteed and should be verified by personal inspection and/or with the appropriate professional(s)</div></td></tr></table><table cellpadding=”0″ cellspacing=”0″ style=”width:780px; text-align:left; “><tr><td style=”color:#000000;font:12px verdana; padding-top:10px; height: 24px;”>Powered by iPropertyWebsites.com</td></tr></table></div>

How Can I Find Homes In the East Bay Without HOA Dues?

 Typically only condos and townhouses have HOA dues associated with them. Some PUDS (Planned Unit Developments) will have single family homes and HOA dues associated with them. If you keep your search to single family homes, you will find that most of the homes in Oakland do not have HOA dues associated with them.

That being said in Oakland there are a few neighborhoods that do have HOA dues. For example Crocker Highlands has yearly HOA dues of $120. Sequoyah Highlands has and HOA, but the dues are voluntary. These HOA dues associated with single family homes in Oakland typically are not exorbitant, and typically are due on a yearly basis.

I would suggest that you evaluate the homes not only based on any potential HOA dues, but the neighborhood, the style of home and what your purchasing power. For example Crocker Highlands is a popular neighborhood close to amenities and public transportation. The $120 HOA fee per year in the larger picture would not excessive or prohibitive.

Guidelines aim to help struggling borrowers may provide relief for SF Bay Area Homeowners

The U.S. Dept. of Housing and Urban Development (HUD) recently announced that the Federal Housing Administration (FHA) has implemented changes to its loan modification program to ensure consistency with the Obama Administration’s Making Home Affordable Modification Program. By August 15, FHA borrowers will be able to reduce their monthly mortgage payments by seeking a loan modification through their current mortgage company or loan servicer under the new FHA-Home Affordable Modification Program (FHAHAMP).

The program will allow HUD to bring a borrower’s payment down to an affordable level. Under the plan, mortgage servicers can reduce the amount of principal on which the borrower must make loan payments by as much as 30 percent to get monthly payments to affordable levels. The borrower makes the reduced payments for the life of the loan, but is responsible for paying off the loan in full when the home is sold or the loan is refinanced.

FHA borrowers can receive a loan modification after they have missed one loan payment, rather than waiting until they are at least three payments behind, as in the past. This differs from the Making Home Affordable Program in that borrowers who are current, but are at risk of default can qualify for assistance. HUD does not have an estimate on the number of borrowers that will be assisted. According to LPS Applied Analytics, 14.2 percent of FHA loans are at least 30 days past due and not yet in foreclosure.

To read the full story, please click here:

http://online.wsj.com/article/SB124891434984092191.html