Monday April 25, 2011
A typical concern of many home sellers is when is my house sold?
Sometimes, their agents don't know, either. Agents have to be very careful how they answer buyers who call asking questions about a home for sale. A home seller in Sacramento shared a story with me about what happened when she had accepted an offer for her house. That offer was contingent on the buyers selling their home. Her agent told a potential buyer that the home had sold, which wasn't true.
Because the present buyers' offer was contingent, the seller could have accepted another offer. That agent got into a lot of trouble . . . read more about When Is My House Sold?
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Friday April 22, 2011
Federal agencies are proposing to dramatically change the requirements for conventional financing, which has many in the industry in an uproar. They are talking about changing front-end ratios to 28% maximum and back-end ratios to 36%. But probably the biggest hurdle for many home buyers to jump through will be the proposed 20% down payment.
You know where people generally get a 20% down payment? From the sale proceeds of their first home. If you don't have a home yet and are a first-time home buyer, trying to scrape together that much money is almost impossible. For a $200,000 home, 20% down is $40,000. The Washington Post sheds light on this proposed policy and shares criticism from housing officials. If this becomes policy next year, FHA loans will be the only suitable financing for most first-time home buyers.
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Wednesday April 20, 2011
There is a such a wide range of inappropriate information available on the Internet about how a
short sale or foreclosure affects credit reports. Ms. Coy said it best when I interviewed her, saying it's the difference between being hit by a bus or hit by a train. It's just about the same.
Take a look at this FICO report, which shows variances among 3 different credit profiles after a short sale / foreclosure. The higher the original FICO, the harder the hit and the longer it takes to completely recover. FICO claims there is little difference but you can see the difference in the chart. There is a big difference if there is no deficiency from the short sale. A representative profile of a consumer with a 680 FICO shows the score dropping to 610 to 630 after a short sale without a deficiency. Most FHA loans require a minimum score of 620. That leverage is lost with a deficiency, though.
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Monday April 18, 2011
It baffles buyers when they see a foreclosure sell for less than the amount the buyers offered.
They just don't understand. How can they make an offer for considerably more than list price yet the bank ultimately accepts a lower-priced offer? The first place a buyer jumps to is the land of crooked agents -- where agents lurk about in shadows and whisper through veils. The second place a buyer lands is in the field of banks are evil. This is the place where grass has turned into thorns and the sun never shines.
The truth is there are a handful of logical reasons . . . read more about why would a Foreclosure Sell for Less.
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
