Many of the home buyers and sellers have questions about closing cost. I just found a website called Closing.com that provides very easy to understand explanations.
Closing Costs Checklist | ClosingTalk.
Category Archives: Home Sellers
Stunning Custom-Built San Dimas Estate
3/27/11 Update
This is a short sale and the short sale package has been submitted to the lien holder(s). The first BPO has been done a while ago but we are still waiting for further instruction from the lien holder(s).
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1163 Edinburgh Rd., San Dimas, CA 91773
Bedrooms: 5 / Bathrooms: 4.5
Size: 4,485 sqft. / Lot: 69,204 sqft..
List Price: $749,888
• Substantial custom-built estate located in the gorgeous San Dimas area. Situated at the corner lot of a beautiful cul-de-sac with fantastic views.
• Open and airy floor plan with lots of potentials. Home in good condition but this is a great opportunity for tasteful owners who are willing to take on a makeover project.
• One downstairs bedroom, 3 car-attached garage, splashing pool. Circular stairway at the high ceiling foyer. Secondary staircase at the end of the house for easy traveling within the house.
What is a short sale?
What is a short sale?
If you purchased your home during 2005 to 2007, the chances of you having equity in the house is very slim. When you are selling your home for the current market value that is lower than your current mortgage balance, the sale is defined as a short sale.
Benefit of Short Sale
Avoid Foreclosure
Impact less on credit scores
Will be able to obtain financing again for a home in less amount of time than a foreclosure on record
Why do people short sale their home?
Financial hardship
Many home buyers had a ARM (Adjustable Rate Mortgage) when they purchased the home. Many ARM’s are about to adjust or have already been adjusted. If home owners cannot afford the new mortgage payment, they sometimes choose short sale the house.
Joss loss
The unemployment rate in CA is about 12.4% (http://www.labormarketinfo.edd.ca.gov/). When someone loses his or her job, it is very natural that he or she chooses to short sale the house.
Life change
When someone is relocating for job but don’t have equity in the house, they will need to short sale the house unless they want to come out with difference in cash.
Who’s paying the real estate commission?
The first lien holder
Key Points & Reminder
Most homes for sale in the market now are short sales. The only thing short in the transaction is the amount owed to the mortgage lien holders, not the time of transaction or the sales price of the home (home needs to be sold at current market value). Home owners short sale their homes because of many reasons but their common goal is to avoid the FORECLOSURES of their homes.
Finding a REPUTABLE REAL ESTATE PROFESSIONAL that will work for your best interest on a short sale is very important because there are many technical factors involved in the transaction. Home owners should consult with tax and legal advisors before committing to a short sale because tax and legal ramifications might be involved. In addition, keep in mind that not everyone will short sale their home and walk away owing nothing to the bank. Most of the time, the bank will issue a unsecured note against the borrower(s) due to borrowers’ different circumstances.
Finally
Home owners sell their home for many reasons. Unfortunately, many of the home owners today are selling their home short because of the unstable economy. There is no shame for a short sale, but home owners need to be very clear with their expected goals and the outcome – AVOID FORECLOSURES.
Short sale is not a magic gateway to walk away from the house free but a way to solve current financial difficulties and save your credit for the future.
I cannot stress enough on the importance of finding a reputable agent because of the technicalities of the transaction. You need to find someone that will work for YOUR best interests.
7-1-10 Market Matters Newsletter
Welcome to C.A.R.’s Market Matters, your weekly market response guide.
CNN Money
Home buyer credit extension heads to Obama
Congress passed a bill this week extending the deadline to close escrow and qualify for the federal home buyers tax credit. President Obama is expected to sign the bill extending the deadline to Sept. 30, 2010, instead of its original June 30 deadline.
MAKING SENSE OF THE STORY FOR CONSUMERS
- The bill extends the deadline to close escrow for home buyers who entered into a home purchase contract by the April 30 deadline. First-time buyers may be eligible to receive up to $8,000 and qualified existing homeowners may receive up to $6,500 if the home buyer closes escrow by Sept. 30.
- Home buyers entering into sales contracts May 1 or later are not eligible for the federal tax credit, but they may qualify for the California home buyer tax credit.
- The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® worked closely with members of Congress to extend the deadline. Estimates from NAR show nearly 180,000 home buyers nationwide would have missed out on the tax credit if the deadline was not extended, including nearly 17,700 home buyers in California.
- Many of the home buyers who would have missed out on the tax credit are in the midst of purchasing a short sale or foreclosure, which generally take longer to close due to the amount of paperwork involved in the transaction.
To read the full story, please click here:
http://money.cnn.com/2010/06/30/news/economy/homebuyer_tax_credit/index.htm
In Other News…
The Los Angeles Times
Deeds-in-lieu gain favor with lenders as alternative to foreclosure
Short sales have been the hot solution for financially stressed homeowners and their lenders for the last year, but there’s another potent foreclosure alternative that’s about to take center stage: Deeds-in-lieu.
To read the full story, please click here:
http://www.latimes.com/business/realestate/la-fi-harney-20100627-5,0,370257.story
The Sacramento Bee
California to offer program to trim underwater mortgages
Lots of people will want to get in on this one: California is going to use federal money to pay down the mortgages of struggling homeowners.
To read the full story, please click here:
http://www.sacbee.com/2010/06/24/2844866/california-to-offer-program-to.html
The New York Times
VA loans harder to get
Military veterans have long been accustomed to a relatively easy mortgage process. Even borrowers with no down payment or a low credit score were usually granted VA loans, in large part because the Dept. of Veterans Affairs insures a quarter of the loan amount.
To read the full story, please click here:
http://www.nytimes.com/2010/06/27/realestate/27mort.html?ref=realestate
Bloomberg
IRS audits block 10 percent of first-time home buyer credits
The Internal Revenue Service blocked almost 10 percent of U.S. claims for the first-time home buyer tax credit after receiving erroneous or fraudulent filings, according to a report today.
To read the full story, please click here:
The Wall Street Journal
How far underwater do borrowers sink before walking away?
At what point do borrowers who owe more than their homes are worth decide to stop paying the mortgage?
To read the full story, please click here:
CNN Money
Home prices up 3.8 percent in April – but don’t celebrate
Home prices rose 0.8 percent in April compared with March and were up 3.8 percent from a year ago, according to the S&P/Case-Shiller Home Price Index of 20 major housing markets.
To read the full story, please click here:
http://money.cnn.com/2010/06/29/real_estate/april_home_prices/index.htm?hpt=T2
The Los Angeles Times
Importance of Home Warranty – Make sure to put it in on ALL of your offers
I am a BIG believer in Home Warranty. I encourage all of my buyers and sellers to obtain home warranties simply because the GOOD warranty companies can save the buyers and sellers a lot of headaches during and after a transaction.
Many home sellers might not know that they are actually eligible for purchasing a seller’s policy that will cover the property during escrow period if they do not already have home warranty for their home.
I personally have home warranty on the house that we live in.
Feel free to ask Madelyn or me if any of you have any questions.
Just Listed – Sensational 24hr-Guard Estate in Covina Highland
Updated on 10/1/10: This home was leased again in less than a week. Traffic for this listing is phenomenon. Please feel free to let me know if you would like to know my expertise in luxury home lease and sales.
Just Listed by Jonathan Chi
Visit www.20517Mesquite.JonathanChi.com for detail property information and property slide show.
A sensational former model estate perfect for your active, elegant lifestyle awaits you! Located in the prestigious Les Maison Covina Highland gated community with 24-hour guards. Conveniently located close to the freeways. Enjoy an open, airy floor plan under a soaring ceiling, dramatic curved staircase, the elegant formal living room, spacious family room with a fireplace and wall of windows, chef’s dream kitchen with a breakfast area, and much more! Peek over the interior balcony from the landing to the family room below! The master bedroom is relaxful with a deck and tree view, separate soaking tub, dual basin vanity and roomy walk-in closet. Private putting green in the backyard for your enjoyment. This is a rare 4-car garage model with 4 full bedrooms (Title shows 5). One downstairs bedroom. Award winning South Hills Schools. Take a closer look at this dream home today!
Call 626-606-5716 or Email J.Chi@JonathanChi.com for a private showing appointment.
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