25. January 2012 by Michael McFarlane.

FHA loans have always been a great way for a young (just beginning) family to get into home ownership.  They require less down payments, have lower requirements for income and other qualifications.  They are generally guaranteed by the government.

However, the recent price downturn has caused some problems with them.  At a time when buying is at an all-time great, many are left out because they are unable to save enough to make the down payment (even though it is small) and pay all the closing costs.

A home seller might offer to pay some or many of those closing costs in order to get their home sold.  Makes sense, right?  That’s the normal way of doing business.  But, in an effort to prevent a repeat of the financial meltdown FHA has limited the amount that can be contributed by sellers. 

On the other end of the equation, in order to get our economy on the road to recovery (or moving faster) we need to get the foreclosures off the market (read sold).  Prices and interest rates are creating that perfect buying scenario for the beginning home owner, and they are a great source to clean up the REO market. 

This is the group of buyers willing to put in the work as required on some of these homes.  With sweat equity they then have more home than otherwise possible.  It just makes a great way to get started, and helps the market at the same time.  It cleans up our neighborhoods, stabilizes the market, puts more people to work…the list goes on.

Well, it looks like the FHA is NOT seeing this, and may lower the limits on seller contributions allowed.  This will make it harder, or impossible, for some to buy.  While we do not want a repeat of the meltdown, we do think the recovery needs a little help.

$ To read the full notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates         Free Home Warranty

   Search the MLS             Over the Back Fence

           Home Rescue Group        Free Home Market Analysis

                          Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | No Comments »

21. January 2012 by Michael McFarlane.

Proposed changes in the Governor’s Budget call for “consolidating” some agencies.  One of those would be the DRE (Department of Real Estate).  It is all dressed up as a way to save money by eliminating duplicate expenses, thereby reducing the need for tax dollars.

We see it as a state level reiteration of the Social Security fiasco.  By “combining” agencies they are combining money pools.  Read that as taking money; money that is used strictly to regulate real estate practices and protect the general public.  While we don’t enjoy regulation any more than the next guy, there is an absolute need for protection from the unscrupulous.

Could this protection be accomplished or even improved by joining forces with other agencies?  Possibly; everything can be improved.  But that is not the object here.  This is a budget maneuver.  This is being touted as a cost savings.

How can you save when the cost is already $0?  You read the right; it’s not a typo.  The DRE is funded not by tax dollars, but by the fees we pay for licenses and services.  Part of the fines collected are also added to this pot.  Operating costs and enforcement are taken from this pot.

This is where the comparison to Social Security comes in.  The DRE has a positive account balance.  This is required to operate without using credit, as we do.  By “combining” DRE with tax supported agencies, our money gets added to their pool: you know, that pool that is not only dry but deeply in debt!

End result: Increased cost to tax payers AND less protection!  This is such a disgrace that the California Association of Realtors® is once again stepping in to support the DRE in their defense of the measure.  Once again government is asking you to pay more and accept less for it!  Time to say “NO”!

$ To read the notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

         Subscribe to Listings Updates          Free Home Warranty

Search the MLS                 Over the Back Fence

          Home Rescue Group               Free Home Market Analysis

                     Yuba-Sutter Real Estate Today

Posted in Uncategorized | No Comments »

18. January 2012 by Michael McFarlane.

For some time our Spanish speaking friends have been at a bit of a disadvantage in the real estate world.  While some, like us, have realized the importance of nurturing relationships, it is a difficult task when a language barrier is present.  Many, even big companies, still are unable to deal with it.

Some have hired agents specifically to fill this need.  We, working as a team, have the ability to put an agent in front of a client that will make them comfortable.  But that still left a gap.  Unlike those of us comfortable with the English language, the internet was still pretty much unreachable.

Last month C.A.R. launched it’s new service: a Spanish based web site.  Called Sucasa the idea is to level the information availability.  We’d like to hear how it’s working.  What needs working on, what works, etc.

$ To read the notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates              Free Home Warranty

                Search the MLS           Over the Back Fence

Home Rescue Group          Free Home Market Analysis

                   Yuba-Sutter Real Estate Today

Posted in Real Estate Market | No Comments »

5. January 2012 by Michael McFarlane.

Some time back, in an effort to protect the public from predatory practices the FHA laid out some very strict rules regarding how investors could, or could NOT, use federally insured loans to finance their business.  Flipping is the general term used to describe the practice purchasing a home needing repair, then quickly doing that repair and reselling the home at a profit.

Unfortunately, some unscrupulous types gave the practice a dirty name, even committing bank fraud in their purchase practices.  They might purchase the home at an artificially low price by misrepresenting the home’s and neighborhood’s value, then resell it at a huge profit doing little or no repair work.

A second unsavory practice we’ve observed is doing only superficial and/or cosmetic work leaving the real defects but hiding them from view.  In the latter case the buyer is actually defrauded by misrepresentation of the home’s condition.

In an attempt to curtail this, the feds refused to insure the flip type transactions.  The unfortunate result was that honest investors and contractors were also prevented from getting the funding needed to help get these blighted homes into a salable condition and back onto the market.  For this reason we applaud the recently overturned decision.  Within strict guidelines flips can now be funded using FHA guaranteed loans, and the new home owner can use and FHA loan to purchase it.

The practices the decision tried to stop are already illegal.  It is illegal to misrepresent the value to the bank in order to buy a home, and it is also illegal to NOT disclose all known facts to a buyer that might influence what a prudent buyer might be willing to pay (set the price).

$ To read more on the overturned decision go HERE.

How does this effect you? Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates        Free Home Warranty

    Search the MLS                                 Over the Back Fence

     Home Rescue Group                               Free Home Market Analysis

                           Yuba-Sutter Real Estate Today

Posted in Finance | No Comments »

2. January 2012 by Michael McFarlane.

However you celebrate it, have a happy and safe New Year, and as 2012 improves, so does my wish for your prosperity!

Posted in Uncategorized | No Comments »