SubscribeFree Mortgage Payment Protection, FHA Standards Easing and Loan Mods at Absolute Mortgage Banking
November 20, 2009
Free mortgage payment insurance, really? Yes! While hosting one of my monthly mortgage market updates, which generally occur every third Wednesday of the month, I learned that CAR actually offers complimentary mortgage protection through their Housing Affordability Program (special thanks to Pam Page and Julia Keady for this information). To be eligible, the following are a few highlights:
- First-time buyers only
- Dwelling must be single-family residential
- Must close escrow by December 31, 2009
- Must be represented by a CA Realtor
- Buyer(s) have not received benefits from HAF in the past
The maximum monthly benefit is $2,250 per month for a total duration of six months, after an initial four-month seasoning period. As such, it may be worth looking in to additional providers to augment the CAR program, should additional peace of mind be desired.
So what else was good information discussed at the update on Wednesday?
- Bridge financing is available for qualified move-up buyers looking to leverage their current home and buy before they sell
- “Jumbo” money is more available today than it has been over the last year, which is primarily due to price stabilization– there are now programs offering rates below 4%, leverage as high as 90% (80% to $2mm loan amount!) and financing for investment properties
- with the elevated conforming loan limits staying in tact, rates below 5% and a total of $18,000 in tax credits available to eligible buyers, first-time buyers are likely much better off owning versus renting provided that the holding period is five years
- Move-up buyers appear to be the most motivated lately, as we are seeing twice the number of applications on “jumbo” mortgages versus conforming mortgages coming in at present
- with qualifications tightening, sellers are wise to consider offering up to 2% of the sales price as a credit toward a buyer’s non-recurring closing costs to yield a lower rate and therefore payment
- Multiple offers are back, so it’s good to know that the 21-day close is also available again
Next update presentation will be on January 20, 9:30 am and posted on the AMB website calendar– hope to see you there!
FHA Standards Easing
If you know of someone looking to puchase a condo in a new development, HUD just made it easier to obtain an FHA loan. HUD is easing up on the requirements that 50% of the units be sold (now down to 30%) and now allows up to 50% of the units to be FHA financed (up from 30%) before funding for FHA is allowed. The rule that no more than 10% of the units can be owned by one owner and that 50% of the project must be owner occupied hasn’t changed, and the developers aren’t very happy about it, but the reality is that the deal is simply not insurable otherwise.
Loan Modifications Available Through AMB
Coming soon, Absolute Mortgage Banking will have an arrangement with a reputable company that can help individuals modify their loans per the HAMP requirements, and we’ll make the process very easy with a link through our website. We are in the final due-diligence stage, and we will have a formal announcement likely before Thanksgiving.
Mortgage Mania 25 – What’s Next?
November 3, 2009
Last week I attended a lecture given by economist Chris Thornberg of Beacon Economics on the economic forecast for 2010. The event was sponsored by accounting firm Petrinovich ,Pugh and Co., and Bridge Bank. You can view Dr. Thornberg’s recent presentations on the Beacon Economics website, and his talk from last week HERE.
The digest version is that we will continue to see positive economic news and growth through 2010, but much of that will be driven by the various government funded stimulus packages, which will be ending next year. Since these programs can’t go on forever, Dr. Thornberg predicts that we will see stagnation in 2011 due to the double whammy of unemployment and defaults in the commercial real estate market. Yes, the hits just keep on coming!
We continue to see the following strata in the single-family home market across our area. Here is how the Palo Alto market is currently behaving:
- Under $800,000 we continue to see some multiple offers and some homes selling briskly for over the list price as buyers are enticed into the market by low down payment (3.5% down), FHA backed loans up to $729,750. New home builders are adding pricing and rate incentives, with some offering 3% rates, if you use their lender, their contract, their terms.
Palo Alto $1M - $1.25M, Oct. 2009 vs. Oct. 2008
- $800,000 – $1,500,000 homes are selling more slowly as buyers need 20% – 25% down payments and substantial cash flow to qualify for mortgages in this price range versus the FHA backed loans mentioned above.
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Palo Alto $1.25M - $2M, Oct. 2009 vs. Oct. 2008
- $1,500,000 – $2,000,000 has had an uptick in sales activity in the last month relative to Summer, as buyers in this price range have come back out and absorbed much of the available inventory.
$2M - $3M Oct. 2009 vs. Oct. 2008
Over $3M, Oct. 2009 vs. Oct. 2008
- Over $2,000,000 we are seeing fewer sales and some homes selling at large discounts from listed prices as those owners are overextended and are under financial pressure to sell. Recently, there was a $3.3M short sale in Los Altos, and a $1.8M foreclosure sale in Palo Alto.
Armed with this information, if you are considering selling, early 2010 is the time to take advantage of the current consumer optimism and positive economic news and sell in a relative high (Relative compared a year ago that is, not compared to 2006). As mentioned above, inventory is low relative to demand, especially for updated, attractive homes, and those priced under $2 million are selling. The market above $2 million is moving, but more slowly.
Geeks Of The World Rejoice! Behold The First-Ever Twitter-MLS!
July 22, 2008
I’ve been accused — rightly, I might add — of being a geek. I also happen to be in real estate. You put the two together, plus a keen interest in using new social media tools like Twitter, and what do you get? The Twitter-MLS!
For a long time, MLS searches have been available via email. Recently, some real estate search providers — like our friends at Trulia and at Diverse Solutions — have enabled MLS searches via RSS feeds. (That’s actually the technology I use on the sidebar to provide the link searches.)
As the latest new big online thing, Twitter has attracted a massive cult following, and as a permission-based communication tool, it’s ideal for sending out news snippets such as new listings.
Here’s how it works:
- Sign up for an account at Twitter if you haven’t done so already.
- Head thither and “follow” my Twitter “Menlo Park MLS” account. Other towns in the Bay Area will follow shortly.
- Sit back and enjoy the “tweets” that will come your way by cell phone, email, Twhirl, online (depending on how you configure Twitter). These “tweets” will be little news snippets about new homes to hit the market. Want more details? Click on the link in the tweet and you’ll see pictures, details, and much much more.
If you’re more of a FriendFeed type, I have the same offering available in FriendFeed room format. Find your way yonder, select your favorite city, and click “Join This Room.” And, as our British cousins would say, “Bob’s your uncle!”
FriendFeed room example for Burlingame:
Twitter example for Menlo Park:
“I’m Sorry, I’m Twittering” — A Shameless Parody Of An Old Classic
July 21, 2008
Introducing … Cindy Lin…Stager Extraordinaire!
March 17, 2008
I’m delighted to announce that local stager Cindy Lin has graciously agreed to become a 3 Oceans contributor. She runs Staged4More and its accompanying blog. Talented, opinionated, humorous, a little sassy and irreverent … what more could you want in a contributor — or a stager?
Her inaugural post gives us an Elliot Spitzer object lesson…
Take it away Cindy!
Introducing The World’s Most Internet-Marketed Property: Come Along for the Ride!
April 9, 2007
I've been waiting for the right opportunity to really push the envelope of online real estate marketing, and, well, it's here!
I'm working on a listing in San Francisco's Potrero Hill neighborhood that fits perfectly into this new online marketing world: it's slick, chic, and contemporary, will likely attract a younger and web-savvy crowd of buyers, and the sellers simply love the idea of creating a buzz online.
We're passing on the normal full-color ads in traditional local media like the San Francisco Chronicle, the San Jose Mercury News, and we'll be spending that money online instead. To hedge our bets, we will be placing open house display ads in print media.
I'll be collaborating with several real estate online marketing companies to promote this property. They'll be showing me — and, by extension, my readers — how to get the full benefit of their products. I intend to chronicle our adventures here and invite you to follow along. If you have some ideas, feel free to join in!
I'll announce the first collaborator tomorrow.
In the meantime, as part of our adventures, let's see how high this site currently ranks for the search, "San Francisco Potrero Hill Real Estate" — I suspect it won't be that good, since I've never written about Potrero Hill before!
Sure enough, on Google, Yahoo, and MSN, I'm nowhere to be found, not even in the top 100. 
Google:
Yahoo:
MSN:
Multiple Offers Up Again: Chiropractors Still in Business
March 20, 2007
Previously I reported that buyers appear to be more patient, less ready to pile on, and generally doing their best to avoid “buyer whiplash.”
Turns out that was a blip in market activity for perhaps a week or ten days. Feeding frenzies seem to be now be back in force. Last week clients of mine were one of 21 — twenty one!! — offers on a property. Alas, we didn’t get it. Rumor has it that the winning buyer threw in a Hawaii vacation, naming rights for their next child, and a promise to run up and down the street naked on every anniversary of the sale, waving a banner singing the praises of the seller.
Looks like chiropractors in this area will continue to see a steady stream of business.
Real Estate Buyers, Tired of Whiplash, Becoming More Sophisticated
March 12, 2007
The Spring sellers’ market here in the Bay Area’s Peninsula continues unabated, with no rest in sight for buyers. Multiple offers are still de jour on many sales in the area, with most listings selling for more than the list price.
This week marks a growing trend that could perhaps be called “buyer’s revenge.” Tired of the constant whiplash inflicted on them by sellers hosting an offer presentation rodeo and then squeezing out every drop of blood they can (wow — three unrelated metaphors in one sentence!), buyers are backing off and becoming a bit more patient.
Anecdotes abound this week about properties that had a dozen offer “maybes” turn into only two real offers. On some other transactions there were more offers — say, 6 to 10 — but the final price was only a few percentage points above the list.
Buyers seem to be getting more patient, more sophisticated, more value conscious. They realize that if they pile on during a listing presentation and drive the price of a property up by 20%, that sets the benchmark on the next properties they bid on.
Anyone else seeing this?
(Image courtesy of www.necksurgery.com)
What can a stager do for me? Part 1 of a 4-part series
March 5, 2007
By now, most of us have seen those HGTV shows where a staging team bursts into a property, and, in a whirlwind, transforms it into a buyer’s paradise in a matter of what appears to be a few hours. Usually the premise is either: a) stage this property for sale on a miniscule budget or b) stage this property for sale – the sky’s the limit! But these shows fail to reveal all of the behind-the-scenes labor and preparation put into staging a house. Let’s face it – loading inventory into trucks just doesn’t make for good TV. So I’ve written this four-part blog series to introduce you to what the “typical” stager looks like, along with the services generally performed by stagers. There are, of course, exceptions and variations on what I’m writing, and I’d love to hear what others’ experiences have been with stagers.
So, what does the “typical” staging business look like? Generally, it is a team of one or two staging professionals who do a good deal of the work themselves. Not all stagers have a team of movers, painters and handypersons at their command – although most will be more than happy to recommend such people to their clients. Some stagers do have full-time employees, although many will simply hire assistants and movers as jobs demand. I even know of stagers who bring in their family members and friends as free labor to keep their costs down.
Stagers are often happy to recommend what a client should do as far as remodeling is concerned, but I do not know of many who would handle a job like this themselves. If you are a seller and believe that your property needs major structural remodeling before sale, you should contact a contractor or an interior designer for these things, and call in the stager to put the finishing touches on the property before sale.
Some stagers carry inventory of their own, while others choose to rent furniture or only use the seller’s own furniture for staging. Those stagers who do own inventory often store it anywhere from an extra bedroom in their home to their own warehouse. One of the benefits of carrying inventory that stagers have capitalized on is the ability to stage with a specific style. For instance, some stagers specialize in Craftsman bungalows or modern high-rise condominiums.
A stager with a huge inventory and multiple employees is not necessarily any better than the solo stager whose assistant is her teenage son. Stagers perform a multitude of services – which will be discussed later in this series – and sellers should look for the stager who provides services which best meet their needs.
Rain or Shine — What’s your preference? Depends if You’re a Buyer or Seller…
January 26, 2007
After a long spell of unseasonal sunshine, it looks like the rain may be back. The forecast for this weekend gives us nearly 50/50 odds of being rained out.
Here’s the question — if you’re active in the market right now, which would you prefer: rain or shine? I’d say it depends if you’re a buyer or seller.
If you’re a seller, you definitely want good weather. Bright sunshine and balmy weather triggers the release of home buying pheromones and gets you lots of weekend open house traffic. The more interest in your home, the better.
If you’re a buyer, especially a really committed one, you definitely want bad weather. Cloudy, overcast days, and preferably rain definitely dampens home buyer enthusiasm and reduces competition for that home you’re after.
This may explain the unusually early spring buying season we’ve been experiencing. We often get Seattle-type weather this time of year, with week after endless week of drizzing rain. As soon as the rain stops, the spring buying season starts. Last year the rain stopped late, and so the buyers came out late too. This year the rain stopped early — or so we thought — and the last two weeks have seen pretty frantic activity.
If my theory is right, and this rain persists, the market may taper off and wait until the rain really ends for the season.
