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Short Sales are encouraged as the best default solution in Market 2010

John Hinrichs — Tue, 13 Apr 2010 23:25:09 GMT

The White House has proclaimed another edict this last month.

The best solution for a home in default is a short sale. Glad they thought of that!

Now our Government is finally getting to some real world solutions, about 2 years late and of course laden with lots of rules, but at least it is a step in the right direction. Our clogged real estate markets need help and offering mortgage servicing company's an incentive to work through a short sale is a good solution vs a foreclosure. More information will be coming out on this, but folks as always this is a solution for some and not all homes in distress. You can go to the www.MakingHomeAffordable.gov Website and find out more information about this and other possible solutions to default. www.JohnHinrichs.com Direct: 925-784-6410

Federal Tax Credit

John Hinrichs — Tue, 13 Apr 2010 22:16:00 GMT

In order to capture one of the best government give a ways called the home buyers Federal Tax Credit up to $ 8,000, you must enter a contract by April 30th, 2010. Dont panic you have until July 1, 2010 to close and still receive the credit. The way the tax credit works is, it is calculated based on up to 5 % of the sale price. So a $ 100,000 purchase would award a tax credit of $ 5000. A $200,000 purchase would allow up to only $ 8,000 because 5 % exceeds the maximim credit of $8,000. Talk to you Enroll Agent Tax professional for details on filing and recieving this credit. Another good point or not, many ask if you can use this as a down payment today, and the answer is no, however look at it as a rebate that you will later recieve after you file you 2010 return. Dont miss out on this one, if you are not in contract yet, hurry the clock is running out.

First Time Home Buyers Market Timing

John Hinrichs — Tue, 20 Jan 2009 13:14:00 GMT

Studying history can be a great way to deterine the future, especially when it comes to economics. As our data bases grow over time I believe the information will be a great tool to deterrmine the buy and sell cycles of real estate. If you were to study our economic cycles it is difficult to determine the exact year of the top or bottom of a market cycle but it is possible to see one coming. In a study of today's market and Fannie Mae's recent report of future loan activity, it appears that we are at our near our bottom of the market. As builder inventory shrinks, the existing inventory in the market, will be where buyers will need to look to buy a new home. Demand will slowly build over time, as long as employment and consumer confidence in the market stays positive. Based on the previous two economic cycles the bottoms were about 1996 and 1985. In this last cycle the peak of the market was 2005 - 2006 and the market corrections usually last 2-3 years, then a bottom and slowly recover over the next 2-4 years. In our capitalistic society our greed driven agenda's will .again push our markets to greatness. Millionaires are made at the bottom of a cycle. We are in the vortex of the bottom of the market, the best Buyers market we have seen since the last one in 1995 - 1996.

Can Buyer Closing Costs be paid by the Seller?

John Hinrichs — Tue, 20 Jan 2009 05:57:00 GMT

It is common today for motivated sellers to pay up to 3.0 % for closing costs for either a FHA or Conventional Loan.
FHA allows up to 6 % for Closing costs and Conventional loans vary based on the down payment. For down payments less than or equal to 5 %, the maximum credit is 3.0 % A 10 % or more down payment allows up to 6.0 % and a down payment of 20 % or more will allow up to 9 %. Closing costs consist of Lender, escrow and reserves for property tax and home insurance (impounds).

FHA New minimum down payment 3.5 %

John Hinrichs — Tue, 20 Jan 2009 05:52:00 GMT

As of Jan 1st, 2009 FHA has changed its down payment requirement for the first time in more than a decade. The new down payment is slightly higher than previously. It has increase from 2.85% to 3.50%. FHA still allows 100% or a portion of the down payment and closing costs to be a gift from a relative.

California First Time Home Buyer Program is put on Hold

John Hinrichs — Tue, 20 Jan 2009 05:46:00 GMT

Cal Housing Finance Authority
California's Down Payment Assistance program is put on hold as of December, 2008. This bond program is put on hold due to a very weak bond market and declining values. This program allowed buyers to borrower the down payment for FHA's , minimum down payment and closing costs.

Welcome

John Hinrichs — Wed, 26 Nov 2008 21:37:51 GMT

Welcome to my blog. Please check back soon for new entries.