Mark Anderson’s off the cuff Blog

You had to be impressed if you watched the Opening Ceremony of the Olympics from China.  What a huge amount of effort, money, practice, personal sacrifice and ego went into the making of that night!  It makes me wonder if there’s really any focus on the athletes and their quest for gold!?  But in the light of the fireworks glow - we may have some insight into our current plight here in Orange County - with regard to the REO and Foreclosure properties.

While the China government polished itself to show the world how up and coming they are - there are stories of the strong armed approach that was needed and of the number of their own citizens who were displaced or moved to action because of this worldly display.  How many of their own people have to worry daily about food, poverty, education and their own government’s powerful position?

Here in Orange County, we seem to be caught up with the “American Dream” - and everything that goes along with the housing industry.  Maybe because we got so starry-eyed about real estate, we now have more homes for sale than the amount of buyers that are looking.  We have homes that are selling as a “short sale” property - or as other distressed properties like REO homes or Foreclosures.  In reality, these conditions may bring us back down to earth with our prices, lending practices - and even our “investor” views on home ownership.

We can’t do much to help the Chinese in their plight - except put some pressure on their government - or stop buying their products.  We can do some things about the REO properties - and search for the opportunities to begin making solid decisions about the homes we buy and live in.

For great blogging about the political side of the Olympics - check out the Nation at www.thenation.com/blogs and see what they have to say.  For direct lender info about available REO properties, look into www.countrywide.com. You can see a great lender’s personal scoop on things by visiting Kevin Budde at his blog, http://kbudde.blogspot.com. 

Drop me a note on your Olympic thoughts -or your desire to see REO and Foreclosure properties in Orange County.  Visit www.TimeforFHA.com or call 1.888.746.6275 for recorded information and the relevant info on FHA loans!  Ciao!

Mark Anderson

Our recent trip to Seattle was fabulous.  After a visit to Leavenworth, the Bavarian Village of the Cascades (see www.Leavenworth.org) we headed back to Seattle to ride a 58 foot boat around Lake Washington.  We rode by the Gates compound as well as homes owned by the Nordstrom family and others in Seattle’s long history!  Not a lot of REO homes for sale here!

The beauty of Seattle, the fun of Pike Place Market (www.pikeplacemarket.org) and the thrill of seeing King Salmon swimming up the “fish ladder” all made this trip enjoyable!

Returning to work in Orange County, the REO and Foreclosure homes were continuing to grow in numbers!  REO homes seem to be cheaper - and easier to manage the wait for an accepted offer.  The wait on Short Sale properties is unbelieveble!  If you want a blow-by-blow on how these transactions go - call my cell at 949.235.5467 and I’ll fill you in.  For a list of these distressed REO and Foreclosure homes, email me at mark.and@cox.net and I’ll set you up on the auto-notification system.  This system of listing REO and all other properties is updated twice daily - and the latest info gets to you immediately.

One other nice surprise upon returning - was the seminar attended that had instruction from the editor of www.RainCityGuide.com - one of the best sites I have seen for keeping track of the housing activity in Seattle.  So, not only can you go visit from time to time - but you can visit this site daily for info about the real estate market in that area.

For info and to search for homes in Orange County, visit www.TimeforFHA.com and get the latest!  Recorded information is available at 1.888.746.6275.

Doesn’t it seem odd that all of this information is now coming out about the effects of the so-called “sub-prime” meltdown - and that the effects are much more far-reaching than originally thought?  Did we identify these practices as “predatory” when they were happening?  Did we have an idea when we homeowners were getting multiple re-finance opportunities in the mail?

Think about the marketing push and business analysis that went into the construction of these securitized investment vehicles - and their subsequent sales pitch to the general public.  These are not shallow or casual business folks running the big banks and lending institutions.  These are cracker-jack MBA grads who know how to continue to increase the benefit to thier stockholders - and themselves.  These are lawyers who are expert at finding the loopholes in the law to jump through.  These are politicians who created the loopholes and who want desperately to get re-elected, and they need lots of money to do it.

Why hasn’t any group or individual been called to task for these actions?  Is there real fraud here - and if so, would it be brought to the light of day anyway?  How much “spin” would happen to sheild almost everyone involved? 

Real Estate wealth building is a valid ideal - and it can be done ethically - using good judgement and honesty in it’s application.  I know how, and I think my clients would tell you that we’ve done it together over the years! 

Have you been affected by the actions of these corporations or individuals in the last ten years?  Do you know of friends or family who have been affected?  I would like to hear from you with your story.

Call 1.888.746.6275 and tell your story or leave a message for me to call. Let’s see if we can all get a little bit wiser about what’s being allowed to happen by our leaders of industry and government.  It should stop.

As an additional way of helping home buyers afford the FHA loans that are so beneficial right now, HUD has added some additional guidelines regarding the cost of MIP -Mortgage Insurance Premiums.  Since this insurance is required for at least five years of the FHA loan, it can be an additional expense to the buyer.  The rate had been set as the same for all loans.

Now there has been a reduction in the MIP rate for some of the FHA loans - based on a few factors.  The size of the loan, the size of the down payment and the FICO scores of the buyers can all have an effect on the final MIP rate.  It could mean the savings of hundreds of dollars per month!

Since the FHA loan rates have been moved up to $729,000 in Orange County and other parts of Southern California, these Government Insured loan packages are being used daily by buyers in this area.  Many condos, townhouses and single family residences now fit into this approved category.  Mark Anderson knows that and he shows these FHA approved properties to his clients and writes offers for them as their Buyer’s Advocate!

For more information on the FHA loans that are so beneficial to First Time Buyers and Home Owners who need to re-finance their homes, refer to the recorded information at 1.888.746.6275 or log onto the popular site www.TimeforFHA.com and see if these Real Estate wealth-building concepts can help you or your family and friends.

If you have been watching the interest rates lately - you will see that South Orange County interest rates have been rising.  It seemed like just a few weeks ago a Laguna Niguel and Aliso Viejo buyer was looking at a rate of 5.7/8% and now we’re writing offers at 6.5%.

So what really happens to a buyer who waits until the prices drop further - while, in fact, the interest rates are going up. It’s all about the amount of house a buyer can buy.

Right now there are single family residences in Lake Forest, Aliso Viejo, Irvine, Mission Viejo and other South Orange County areas that are selling for under $500,000.  Most buyers will decide on the purchase price by thinking about how big of a monthly payment they want.  When Interest Rates go up, to keep the monthly payment the same, the actual amont to be financed goes down.  That means the purchase price goes down.  That probably means that the square footage goes down - or the area gets less desireable.

So buyers, why wait?  If you stay in your home like the avaerage California Home Owner - that is, 5 to 7 years, you won’t care if the prices/values drop another 5 or 10%.  You will be back up in value when you are ready to move up!

For more insight and advice consider a consultant - not a salesperson.  Hear recorded info at 1.888.746.6275 or visit www.TimeforFHA.com.  Ask for Mark Anderson as your personal Consultant!

Mark Anderson.  A REAL…Estate Consultant!

One of my lenders wrote some interesting Short Sale tips this week.  It’s information that Sellers can use to decide between Short Sale options versus Foreclosure options.

Rmember that when the bank accepts a lower payout than what is owed on the account, the Internal Revenue Service can consider this debt relief as income - and tax people accordingly.

 Certain owners may not be taxed on the debt relief - if it’s for debt used to purchase or improve a property.  It will not cover debt relief for cash-out re-fi loans.

The negative credit hit from a Short Sale and a Foreclosure are almost the same.  Settled accounts like Short Sales, Deed in Lieu of Foreclosure and Foreclosure will result in a “risky” rating on the credit report.  After a Short Sale a buyer may have to wait five years to get a Fannie Mae-backed loan.  FHA loans would require a three year wait.

The lender says that a “better alternative” to a Short Sale or Foreclosure is a “loan modification”, which may allow the owner to stay in the home.  This applies to homeowners in Laguna Niguel, Mission Viejo, Aliso Viejo, Dana Point, Laguna Beach or anywhere in South Orange County.

Visit www.TimeforFHA.com for additional information - or hear recorded information at 1.888.746.6275.  Ask for Mark Anderson for further explanations of these current options for homeowners.

Sometimes the road away from home ownership may seem to lead to only one place - foreclosure!  This will create credit problems, stess and disappointment! 

I have seen a few other turns off this road - that may help the South Orange County homeowner who is desperate!

For Mark Anderson, Real Estate Consultant, the first item to check is the reason for missing payments, getting a Notice of Default, and starting down this Foreclosure road.  If it’s due to a loan interst rate increase, then maybe a re-finance with the FHA Secure program is just what is needed.  This FHA loan guarantee is for homeowners who may even be a little upside down - but missed at least one payment due to the rate increase.  Call for more details on FHA re-finance options.  See the info at www.TimeforFHA.com .

 Next, we will Consult to see if the property is a candidate for the Trust Conveyance process.  In this case, we can find buyers easily - and the buyers even pay the sales costs for the seller!  Here’s how it works…

The seller transfers their home into a Trust.  We find a buyer who invests in the trust.  This buyer-investor does not need to go through bank qualification - but needs @8.5% up front cash.  Then, usually, the buyer-investor in the Trust moves into the home on a triple-net lease.  They pay the existing loan payments - through the Trust Attorney - and they pay the existing Property Taxes, Insurance, HOA’s and a Management Fee.  They then get all of the tax benefits as a result of being on the triple-net lease.

The seller gets to be relieved from making the payments - and can move on to another property, even claiming the buyer-investor payments as rental income!

When the home increases in value (most Trusts are set up for 5 years) the buyer-investor gets the chance to re-finance, buy the seller-investor out, and take over the title for the property.

This is a creative financing option for a desperate seller - that keeps their credit intact, allows them to move on, and even finds someone to pay their sales costs!  The formula is worked out so that sellers with some equity get a share of the profits when the home actually does sell.  Sellers with full equity can receive monthly payments from the renter.

Call for additional info and ask for Mark Anderson - or hear recorded information at 1.888.746.6275.  You could also visit www.TimeforFHA.com to hear the very latest in Real Estate news!!

Some homeowners who are feeling the pinch of an upward adjustment in their loan payment can now get help from FHA.  Their program, called FHA Secure, allows qualified homeowners to re-finance their loans - when they have missed a payment due to an upward rate adjustment.

Homeowners in Laguna Niguel, Mission Viejo, Aliso Viejo and the South Orange County cities should consider this option.  Otherwise, it looks like the only thing left is to sell as a Short Sale or let the home go through to foreclosure.  Both have tax and credit consequences!

In talking with the representatives for HUD - who work with the FHA loans, the FHA program is interested in helping these homeowners out.

In a bind?  Stressed out?  Visit www.TimeforFHA.com for more information - or get recorded information on 1.888.746.6275.  Call Mark Anderson, Real Estate Consultant, direct at 949.235.5467 and see if this program would help you or someone that you know!

Why try for an FHA loan?  Even myspace and yahoo may not show you this info!  Paris Hilton, Beyonce and Brittany Spears may not need this info - but you may need it!  Here are a few of the benefits to a buyer…

No FICO qualifying.  Are you “credit worthy”?  FHA wants you!

Low Down Payment.  3% minimum investment required.  On a $400,000.00 home, that’s only $12,000.00.  How much do you have in your renter’s deposit?

Down Payment money can be “gifted”.  Money can come from several sources and does not have to be seasoned.  Gifts can come from a variety of sources.  Some sources are non-profit groups that make the whole down payment available.  That sounds alot like 100% financing!

Loans can have co-signers.  To qualify for the loans - certain “ratios” have to be met. For some, a co-signer will give them additional income, and low expenses, and this will help the buyers achieve the proper ratios for qualifying!

Sellers can contribute up to 6% to the buyer’s costs.  This means that a motivated seller can pay the buyer’s closing costs - and have money left over to “buy down” the buyer’s loan interest rate!

FHA “Rehabilitation” loans will loan extra money to the buyer to complete needed repairs, remodels and upgrades!

FHA loans are much more user-friendly to the sellers than in the past!  It’s not the same old story with repairs, paperwork, etc.

FHA loan limits are currently up to $729,000.00 in South Orange County, Orange County and Los Angeles County.  But hurry - these limits are only good until December 31, 2008.  After that, they may go down again - but we’re not sure to what level!! 

Buyers in Orange County and Los Angeles County don’t let this opportunity go by!

Home prices are low right now - and there’s plenty of selection!  Get a low interest rate FHA loan today!

Visit www.TimeforFHA.com or get recorded information on 1.888.746.6275!

If buyers are looking for a cheap home today - they can get some great deals on home prices!  Many sellers are very motivated.  Even the REO (Bank Owned) properties have prices that mean buyers get a home for an average of 85% of “market value”.  Market value is sometimes hard to pinpoint - so that’s the pricing challenge.

Buyers with small cash reserves can still find 100% financing!  Non-profit groups still exist where the seller will contribute to the organization for the amount of a buyer’s down payment, plus pay a fee.  Then the down payment money is given to the qualified buyer for the purchase!

 Some teachers may also be eligible for Down Payment Assistance, depending on their specific situation.

Buyers, don’t think you’re out of the game!  It’s there for the taking - and now is the right time to buy! 

Visit www.TimeforFHA.com for additional information - or call for recorded information at 1.888.746.6275.

Happy house hunting!