HELLLLOOOOOO My Beautiful, Wonderful Bay Area!!… Its a gorgeous day today…  hope you’re out there enjoying it!… Wanted to share some food for thought for all you 

First Time Home Buyers out there…  

First Time Home Buyers – so excited, filled with anticipation and hope for the future… the first homes you see may well be foreclosed properties – terrible carpeting, damaged walls, missing items, various aromas inside the house… the excitement and hope may begin to fade…

All of a sudden your dream home appears!!… Brand new kitchen, remodeled bathrooms, new paint, new flooring, new windows… its perfect!!… It’s the only one you want… no way will you consider those awful foreclosed/distressed homes!… its too good to be true!!…

Your Realtor informs you it’s a “Flip”…  what the heck is a “Flip” you ask?… A flip is a property purchased by an investor at a discounted price, either on the courthouse steps or some other means… the investor “Flipper” will usually send in a crew to upgrade and improve the home before putting it back on the market for a profit.  The upgrades usually include new paint, new flooring, new kitchen cabinets, new counters, new appliances, new dual pane windows, new hot water heater, a new roof and more…

The drawback is… permits are required for many of the upgrades, and in many cases the “Flippers” don’t bother.

Whenever improvements are made without the necessary permits its creates a real problem. Permits are required for almost every kind of home improvement.

When a buyer purchases a home without the required permits, they become liable for bringing the home to compliance.  This is the problem… time is money, to make a profit “Flippers” must get the home improved and back on the market asap.  Obtaining permits can take more time and delays and more money.

Since the “flippers” buy properties “as is” they inherit the pre-existing improvements – many without permits.  They really should get these properties into compliance with the local building departments BEFORE doing anymore additional work and re-selling.  Its safe to say this isn’t happening in most cases.

In Summary…

The Good?  Flippers are upgrading homes and improving neighborhoods.

The Bad? Shortcuts. Buyers should check city records for permits… None? Ask the seller to provide them.

The Ugly?  Not all flippers do good work. Some just paint over issues and hide problems to turn a quick profit. There’s no guarantee all improvements were installed properly and safely.

Make sure you get a proper home inspection so you know what you’re getting into. BUYER BEWARE!..

Thanks for checking in!! Your comments are always welcome…

Isi

Isi Wu… the realtor for you…
the right agent makes all the difference

Serving Clients All Over the Eastbay…

Related articles

• House Flippers: The Forgotten “Victims” Of The Real Estate Implosion (247wallst.com)

Helllooooo My Wonderful Beautiful Bay Area!!…

Today… we have an extension of  my posting on Tuesday October 12… Foreclosures Halting… Now What??!!!…

The breadth and ultimate effects of  this latest Foreclosure Issue may not be realized anytime soon, while we wait for more solid information to come down the pipeline etc… I thought you’d like to hear  from a trusted very experienced loan consultant and good  friend of mine, who was kind enough to share his personal perspective on the Foreclosure Situation…

(The content below is not be construed to be anything more than his own personal opinion)…

Hi Isi,

My personal belief is that lenders have been very patient with homeowners and to add this extra burden to already stretched banks and lending entities is simply suicidal for our economy.  Homeowners that are behind know very well they will lose their home.  Just like you and I know that on a clear day, the sky is blue.  Banks need to be able to move on their assets and eventually be solvent again.  Banks are not our adversaries.  Heavy and costly government along with the heavy and costly regulation that comes with it, is the problem. 

My business is so laden with regulation now that the average applicant is paying a higher rate and more fees to obtain the same product and the new regulations have done very little to enlighten the consumer to what they are getting.  Sadly, the only benefit the consumer has received is the privilege of paying more for the same product.

 On a different subject.  The economy starts with the consumer ( you and I and our neighbor) – not with business as these administrations keep pushing.  If the consumer has money at the end of the month and is not worried about the future and heavy inevitable taxes, then the consumer will spend which then leads to demand for services and products.  Hence employment.   The only way the consumer is going to have money to spend and feel good about the future is heavy federal and state tax cuts along with heavy government spending cuts.  If I had an extra $10,000.00 at the end of the year and I see a government heavily cutting back and behaving fiscally responsible, I might just purchase that couch we need or maybe I will get a new car.  Multiply this spending by millions and hence demand will jump, businesses will see this demand and expand hiring people and the future would be bright.

This government is poised to spend and unless you are willing to cut government way back it is useless talking about tax cuts.  So vote them out and replace them with leaders who tremble at the thought of big government and spending.  In order to prosper, government must be squeezed, regulation must be loosed, and tax burdens must be lifted.  There is no other formula for a great and prosperous America. 

 Hope this helps. 

Tom Erbil
Mortgage Broker – DRE License# 00934494

Stay tuned in and check back for more updates as they become available…

Isi

Isi Wu… the realtor for you!

Serving Clients All Over the Eastbay and Beyond…

Related articles

• Dory Rand: Robo-Signers Expose Weaknesses in Servicers’ Foreclosure Processes (huffingtonpost.com)
• Colossal Foreclosure Fraud (lewrockwell.com)
• So you bought a foreclosed home. Now what? (seattletimes.nwsource.com)
• Obama administration rejects nationwide foreclosure moratorium (usatoday.com)
• U.S. bank shares take hit over foreclosure woes (financialpost.com)

Image via Wikipedia

HELLLLLOOOO My Wonderful – Beautiful Bay Area… The news is out… A number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide…

This situation is changing daily… this is just part of what we know so far… so far only Bank of America has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order… the other 22 states are processed through the court system.  However non-judicial foreclosures in California do have legal requirements that lenders must follow… Other lenders and servicers placing foreclosure moratoriums are… Goldman Sachs Group Inc’s Litton Loan Servicing, Ally Financial Inc‘s GMAC Mortgage unit, JPMorgan Chase and PNC Financial… please keep in mind they are only Temporarily halting the foreclosure process until they have reviewed whether some lenders/servicers were following correct procedures prior to foreclosing on properties.  This is all taking place voluntarily there has not been any mandates by either State or Federal entities. The bigger question is… just how long will it really take to straighten this mess up??!!!

The immediate impact of this moratorium on your transactions may cause delays and may even remove the listed foreclosures.

Lets all hope these latest events will be resolved swiftly to minimize the impact on our housing market in the Bay Area!

Stay tuned in and check back for updates as they become available…

Isi

Isi Wu… the realtor for you

Serving Clients All Over the Eastbay!

Greetings My Wonderful Beautiful Bay Area!!…  Today I want to revisit what can happen to you if you enter into a Short Sale or if the Bank Forecloses on your property and sells it.

There is NO FREE LUNCH when it comes to the IRS… whenever your home is sold… whether by regular conventional means or if you sold your home at a loss and you paid the difference or by short sale approved by the Bank or involuntarily by foreclosure… be warned you may be subject to taxes!

It doesn’t seem fair and what’s worse… you may not even find out that you owe taxes until the day you open your mail and find a 1099.

The IRS has tax rules for foreclosures or repossessions by lenders of homes belonging to owners who have fallen behind on their mortgage payments.  There can be severe and unexpected tax consequences for any owner who simply walks away just because he or she has little or no equity and the lender takes over and sells the property.  When a mortgaged property is foreclosed or repossessed and the bank re-acquires it or the bank knows the owner abandoned the property… the bank will send Form 1099 to the owner and the IRS… it will include the foreclosed bid price, the actual debt (loan) amount and the amount short of the debt amount… that amount will be taxed as ordinary income… the same as for your salary.

Sellers of residences acquired within the past two years or so are going to incur losses.  Even assuming no price declines, losses will result because of expenses for real estate brokers, lawyers and the like.  Sellers will not be able to deduct those losses… it makes no difference that they are forced to sell because of ie)… job changes or health reasons.

**  There’s also information floating around that Banks where distressed properties have overtaken the area in certain markets…are taking steps where even after they approve and close a property for short sale… they will be actively tracking the owner of that short saled property over the next 6 years… during that time if their credit rating goes up and if they attempt to purchase another home they will be pursuing them for the  “short amount” they lost when they approved that person’s short sale 6 years prior… This bit of information is not fact – as of yet here in California… yet people… Everyone please do everything you can to protect yourselves BEFORE A FORECLOSURE OR SELLING… PLAN AHEAD… especially before attempting to sell on a short sale or going through a foreclosure… please get legal and tax advice… do the planning BEFORE ITS TOO LATE!!…

Thanks for checking in…

Isi

Isi Wu… the realtor for you

Serving Clients All Over the Eastbay!

Related articles by Zemanta

• Frequently Asked Questions on Short Sales answered by my Short Sale partner IFR (visionaryrealtynews.com)
• 75% of modified home loans will redefault (money.cnn.com)

Greetings to You My Beautiful Wonderful Bay Area… The  Thanksgiving Holiday has come and gone… hope it was spent the way you wanted!  It always takes me awhile during and after the holidays to come back to full work mode… its always a special time for reflection and its a great way for me to just take it all in… whatever that might be… but you’re never ever far from my mind…

Today I want to share this with you… Its something that came across the news yesterday…  There’s a growing epidemic of people across this country… about to be foreclosed on who have resorted to burning down their homes!!… mostly out of sheer desperation because they cant get help from their banks… many resort to this with the misguided understanding that by losing their homes to fire their home insurance will pay off their mortgages!!…  Some may look at this as not being desperate, but being spiteful and destructive and greedy. The fact is… its happening… right or wrong… (its not the issue)
http://bit.ly/7zUIUI      and       http://bit.ly/8cX1lv

Its a terrible terrible situation… this problem obviously is too large for any one of us (as individuals) to fix…but we need to remember that there are so many others with much bigger problems than we have… whether they brought it upon themselves or not… I surely dont know what the solution is or if there ever will be…

I just hope we can keep in mind the “reason for the season”… and work towards a better future for all.

Thanks for checking in… your comments are always welcome… Come back and visit all the time!!…

Isi

Isi Wu… the realtor for you…

Serving Clients All Over the Eastbay…

1.   The American Recovery and Reinvestment Act of 2009 authorizes a tax credit-set to expire in the fall-of up to $8,000 for qualified first-time homebuyers purchasing a principal residence. 

2.   Builder incentives are aplenty; from including upgraded features to generous financing assistance (keep an updated list handy!)

3.   Your chance to move into the school district or neighborhood of your choice has never been better than now.

4.  You can take advantage of historically low interest rates on mortgages.  Today’s rates are some of the lowest seen in the past (30) years. 

5.   You have lots of inventory to choose from – take your pick from single family homes, condominiums, garden homes, gated communities, upscale homes, homes on the golf course, and many others. 

6.   If you are currently renting, a mortgage payment could be lower than your monthly rent, plus you could be building up equity and getting a tax deduction in the process.  

1. Please do not believe what you hear or read from the Media.

2. Please listen to the advice of your Realtor.

3. Please believe us when we say the lenders are not willing to give away the properties.

4. Please understand that that the lenders are taking anywhere from 30 to 50 per cent loss on the home.

5. Please understand for the most part the lenders will not take less than listed price.

6. Please understand that when the property is in great condition and in a good location that the there will be multiple offers.

7. Please understand that when there are multiple offers, you need to offer more than listed price.

8. Please understand that real estate in the long run has always gone up in value.

9. Please understand that interest rates will not remain low forever and now is the right time to buy.

10. AND finally, Please understand that there are not any deals!… The deals are here right now!… Homes are ON SALE right now!!!