The following changes have been proposed:

First, that down payment of 3.5% be raised to 5%.

Secondly, that interest rates be raised.  Interest rates have been very low due to the efforts of the government to boost the housing market.  According to the California Association of Realtors, a mortgage analyst predicts that by the end of 2010, interest rates could rise to 5.75% to 6%.  

This graph will show you the difference in payment of a $250,000 loan with a 5% interest rate when interest rates increase.*

Some buyers are sitting on the fence waiting for further decline in prices.  It may not be the best thing to do since interest rates have as much effect on the purchase of a home.  As a rule of thumb, a 1% increase in interest rate is equal to approximately 10% change in price.

Note:*This is not intended to be an offer of credit but is an estimate of a possible mortgage based on the lender’s underwriting guidelines.

If you need additional information, do not hesitate to contact me at (909) 376-8615.  I would be happy to answer your questions, discuss and analyze what is best for you.  As a Residential Financial Consultant, I help people understand the tax advantage, financing alternatives and investment aspects of home ownership and what makes now an incredible time to buy.

Elizabeth M. Eugenio, (909) 376-8615

Certified Residential Specialist, Certified Distressed Property Expert,  Residential Finance Consultant, Graduate Realtor Institute

Elizbeth@HomesByLiz.com, www.HomesByLiz.com

Century 21 Superstars

The most common scam we see are the loan modification programs.  Homeowners are asked to pay $3,000 sometimes up to $5,000 upfront fees and nothing happens.  After the money is given, the person disappears or tells the homeowners that they are still waiting to hear back from the bank.  Most end up in foreclosure unless they get the right help.  The best advise we can give you is to contact your lender and explain your hardship.  They are willing to keep you out of foreclosure.  Yes the process takes time and it is not easy but there is nobody better than you to help yourself.  If you feel you need help, contact a HUD approved Counseling Agency.  They do not charge any fees.

Sometimes, a homeowner is approached by so called investors who will pay for their deficiency to help them get out of foreclosure and are asked to sign documents.  DO NOT DEED YOUR PROPERTY to someone nor sign any papers you do not understand. Read it thoroughly and have a knowledgeable party read and explain it to you.  If you have any questions, verify with your lender.

Another type of scam is when the homeowner is asked to sign papers to authorize them to modify the terms of their loan.  Only your lender can modify your loan.  Do not authorize anybody you do not know and have done due diligence in checking the credibility of the person you are giving your authorization to. 

A homeowner is not allowed to short sale their home to their relative who "buys" the home at a much lower price so you can keep the house and make lower payments.  The guise is to continue living in the home and "rent".  This is fraud and punishable by law.

Delinquency rate in America is 8.8%, inspite of loan modification efforts of the government.  Not only are the sub prime loans affected but there have been an increase in delinquency in prime loans due mainly from job losses, medical bills and other factors.  Homeowners need to realize that their situation is not unique and it is nothing to get embarrased about. The sooner they get proper assistance, the better of they are. 

In light of this, let's all join hands in helping those in financial distress get the right help.  We all have a responsibility to offer our assistance in preventing another foreclosure that is so damaging to all of us.  Every foreclosure affects everybody.

Elizabeth M. Eugenio

(909) 376-8615, Century 21 Superstars

Certified Distressed Property Experty, Certified Residential Specialist, Graduate Realtor Institute

DRE# 01126934

Primary residences are eligible for the federal tax credit and vacation homes do not qualifiy.  Additionally, it has to be an arms-length transaction, meaning, the seller cannot be the buyer's grandparents, parents, child, grandchild or spouse.

The government allows buyers who purchase their home through a federally insured loan to use the credit towards their closing cost or as an additional down payment, instead of waiting for the refund when they file their 2009 taxes.

There is now a demand for homes below $500,000.  We are seeing multiple offers and buyer making offers higher than the listed price.  You will have to resign yourself to the fact that you may have to make several offers before your offer finally gets accepted.  So, act now and get serious with your house hunting. 

Elizabeth M. Eugenio

(909) 376-8615, Email: Elizabeth@HomesByLiz.com

Certified Residential Specialist, Certified Distressed Property Expert, Graduate Realtor Institute

Century 21 Superstars

DRE# 01126934

1.  I don’t have money to pay for the commission to sell my home. 

2.  I can’t afford to make the necessary repairs to my home.

3.  I was told that I have to pay taxes and the lender for the deficiency resulting from the sale.

Here are the facts:

1. On a short sale, the lender who holds the loan pay for the deficiency, the commission and all the cost of selling.  Because of this, the sale is subject to the approval of the lender.  The owners do not spend anything on the sale of the home.  All they need to do is to cooperate with the sale and make the house available for showing and to keep he house in good showing condition as much as possible.
2. Sellers do not have to make repairs they cannot afford.  The house is sold in it’s present condition.  They do have a duty to disclose any material facts about the house.  It is highly recommended that they keep the house as neat and clean as possible to get the best price possible to minimize the deficiency.
3. It is strongly advised that sellers seek counsel with their tax accountant regarding tax consequences.  They may also check the IRS website and read the publications regarding the Mortgage Debt Relief Act and Cancellation of Debt at www.IRS.gov or call the IRS tax assistance line for tax questions at (800) 829-1040 in order to fully understand the matter.
   

The consequences of foreclosure is more damaging than a short sale.  Before making the decision to walk away from your home, talk to a qualified real estate professional who has the know how.  Not all agents are knowledgeable when it comes to short sales.  Choose one who has received the proper training in order to get the correct information.

Elizabeth M. Eugenio

(909) 376-8615

Certified Distressed Property Expert, Certified Residential Specialist, Graduate Realtor Institute

Century 21 Superstars

DRE# 01126934

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The recently enacted American Recovery and Reinvestment (ARRA) of 2009 contained several new or expanded tax benefits on expenditures to reduce energy use or create new energy sources.  More information can be found on the Special Recovery section of IRS.gov. For a larger listing of ARRA’s energy-related tax benefits, see Fact Sheet 2009-10.

The hot summer months will soon be here and by making improvements such as adding insulation, energy-efficient exterior windows, and energy-efficient heating and air conditioning systems, ARRA will give a uniform credit of 30 percent of the cost of qualifying improvements up to $1,500.  

For more information, check the IRS webiste or check with your tax accountant for the various credits and incentives provided to homeowners.

Elizabeth M. Eugenio, (909) 376-8615

Certified Residential Specialist, Certified Distressed Property Expert, Graduate Realtor Institute

In 1978, a constitutional ammendment was passed that allows  a temporary reduction in the assessed value of a property when there is a decline in value.  This is called Proposition 8.

Take advantage of this now that property values have declined.  Forms can be downloaded from the county tax assessor.  There is no fee to apply for this.  You will need some information from your tax bill and your opinion of value for  our property.

I will be happy to give you the latest market value of your home if you do not have this information. 

Here are the links for the different counties to download the form:

San Bernardino County: www.sbcounty.gov/assessor/decline.asp

Riverside County: http://riverside.asrclkrec.com/acr/forms/755P-AS3RS0%20Owners%20Request%20for%20Review.pdf

LA. County:

http://assessor.lacounty.gov/extranet/guides/prop8.aspx

There are companies out there sending letter to homeowners and charging a fee from $99 to $179.  There is no advantage to pay somebody to send the application for you.  It is a very simple process and the assessor's office also indicate that you can do this yourself.

If you need any assistance, feel free to contact me.

 Elizabeth M. Eugenio

(909) 376-8615/ Elizabeth@HomesByLiz.com

Certified Distressed Property Expert, Certified Residential Specialist, Graduate Realtor Institute

What is going in the mortgage market today has just begun.  There is a wave of mortgage resets we have not started to see yet.  According to RealtyTrac, a company that sells default data, foreclosure filings rose in February to nearly 300,000, up 6% from the month before.  There is a tsunami of foreclosures that is coming and President Obama’s hotly debated $275 billion housing-relief package alone will not reverse the trend.

Every foreclosure in a neighborhood depreciates the value in the neighborhood by at least 9%.  The bank carries an additional loss of approximately $60,000 for every property that goes into foreclosure against a short sale.  If we want to see better times, we have to join hands with the government to prevent foreclosure to hasten our economic recovery. Reaching out to our friends, neighbors and family who are going through hardship and letting them know that there are options available to avoid foreclosure could prevent another foreclosure.   A lot of times, they feel overwhelmed once they get over the initial denial stage.

If you have a friend in a distress situation, we would be happy to send them a copy of our report on "Options and Solutions for Homeowners in Foreclosure". Educating them about their options lead to better decisions and we will all be helping each other prevent more foreclosure.  

Elizabeth M. Eugenio

Certified Distressed Property Expert

(909) 376-8615

www.StopForeclosureRemedies.com

1.  Create low cost refinancing plan for homeowners who are current on their payments and are suffering from falling home prices.  Historically, in order to refinance, there has to be an 80% value on the house.  The admministration is announcing a new program to help responsible homewoners with conforming loans guaranteed by Fannie Mae or Freddie Mac refinance their loan even if they owe more than 80%.

2. $75 Billion Stability program to help homewoners at risk of foreclosure to help them stay in their home.  The program is not for flippers and speculators.

3.  Increase funding commitment to Freddie Mac and Fannie Mae to maintain more affordable rates. 

Loan modification is now the new buzz word.  While it may not work for everybody, there are other options to avoid foreclosure.  Ask me about the different options. 

Elizabeth M. Eugenio, (909) 376-8615

Elizabeth@HomesByLiz.com

Certified Distressed Property Expert, Certified Residential Specialist, Graduate Realtor Institute, Certified Foreclosure Specialist

Nowadays, we find that the FHA loans are the best loans compared to the conventional loans, for various reasons.  First of all, FHA loans only need a 3.5% downpayment which can come from family members, something that is not allowed in conventional loans.  It is also easier to qualify for FHA loans because FHA insures the loan so lenders are more willing to give loans with lower qualifying requirements, even if you have credit problems such as banckruptcy.  In times of hardship, they have more options to keep you in your home to avoid foreclosure.  

FHA also offers more protection for the buyers.  They make sure that the property appraises for the right value by requiring that their own appraisers be used before approving the loan. They also make sure the condition of the house passes FHA approval.  Make sure you find an approved FHA lender.  If you need help finding a lender, just let me know.  You want to make sure you have a pleasant home buying experience.

Elizabeth M. Eugenio, (909) 376-8615

Certified Distress Property Expert (CDPE), Certified Residential Specialist (CRS), Graduate Realtor Institute (GRI), Certified Foreclosure Specialist (CFS)

• Loan number
• Income information and documentation
• Latest mortgage statement
• Bank statements
• Letter stating the reason for their financial harship

If they wish to hire the help of a professional, extreme caution should be exercised in choosing the person/company, especially if you are asked to pay in advance.  Many homewoners have become victims of companies/individuals who claim to be "foreclosure/mortgage consultants" or "foreclosure rescue agency" and have given money upfront and did not receive the help they need. 

Theee are various government programs that are available without them havng to pay a fee. One of them is the Hope for Homeowners.  Some lenders like Countrywide, CitiMortgage, JP Morgan Chase and IndyMac provide assistance to homeowners whose loan they are holding. 

The Department of Real Estate has issued guidelines on how a Realtor can assist their clients.  If a Notice of Defualt has been recorded on their property, a real estate licensee or company cannot collect an advance fee.  They can get paid after their work is completed. The  Department of Real Estate has listed on their website the real estate brokers who may charge an advaced fee.  The address to go to is http://www.DRE.Ca.gov/mlb_adv_fees_list.html. 

Homeowners who were not able to modify their loan through the free govenment programs find that they were helped by going to other companies and paying a fee.  Exercise due diligence in choosing the right person/company.  They can protect themselves from scams by:

• Know and undestand every document before signing.
• Get promises in writing instead of oral promises
• Pay mortgages directly to your lender
• Never sign over your deed without the advise of your lawyer or financial advisor
• Report suspicious activity to the FTC or your local consumer protection agency.

We hope that this has been good information for you.  If you have further questions, please feel free to email me at: Elizabeth@HomesByLiz.com

Elizabeth M. Eugenio, (909) 376-8615

Certified Distress Property Expert (CDPE), Certified Residential Specialist (CRS), Graduate Realtor Institute (GRI), Certified Foreclosure Specialist (CFS).

Getting a list of foreclosure homes for sale is not all there is to buying foreclosures.  Getting the bank to accept your offer among the other offers they receive is most important.  It is important to work with a Realtor who has experience in working the REO market. 

If you are interested in buying foreclosures or short sales, let  me know so you can be assured of getting the best service.  

In Chino Hills and surrounding areas, Realtors have noticed multiple offers are being made on properties that are priced right, especially the bank owned properties.  One of my associates tried to make an offer on a property and was told by the listing agent that she already has 40 offers on the property.

With this in mind, buyers who are sitting on the fence waiting for prices to come down more should evaluate the total situation and do their independent research instead of listening to the news they get from the media.  The numbers do not lie and data is readily available to consumers.

Feel free to contact me for sales statistics in your neighborhood.  

Does your agent have the training and know how to notice "red flags" or conditions in the house that could later cause problems?   Aside from marketing or helping you find your home, agents have a duty to protect you from legal issues.  Many lawsuits that arise could have been prevented if due diligence was exercised.  Sometimes, all it takes is to hire a licensed professional to investigate for you.   

If you would like to get a copy of the questionaire you should ask before hiring an agent,  email me or call me and I would be happy to send you one.  Remember, choosing an agent should not be based on the discount you will get on the commission.  Cheap, most of the time ends up being more costly.

In the past, the homeowner in a short sale situation ended up being assessed in taxes for the amount that was forgiven.  The IRS considered the mortgage debt relief a taxable gain.

On December 20, 2007, the IRS passed the Mortgage Debt Relief Act. which allowed "cancelled debt used to buy, build or improve your principal residence or refinance debt incurred for those purposes" to qualify for this exclusion.  This was a great help to a lot of homewoners.

Buying short sales properties may not be for everyone.  If you are buying and you need to close on a time frame, it may not be the best situation for you.  If you are willing to wait, there are good deals out there for you. It is best though to choose a Realtor who is familiar with the process to represent you, otherwise, you may find yourself in a transaction for several months that does not close.

To be successful in finding the best deals, the most important step to take is to hook themselves with a Realtor who has the resources and the expertise.    It is not always easy to buy foreclosures so getting the best representation is vital  to a successful closing.  

Make sure you educate yourself about the process because there is definitely money to be made.  Feel free to contact me for more information about buying foreclosures.

With this higher loan limit, some of the jumbo loans can now be refinanced at the lower confirming loan limit, which could be 1/2 to 3/4 point lower.  Additionally, Freddie Mac and Fannie Mae loans require only 3% down payment for home purchases and are easier to acquire, thereby making it easier for first time buyers, sub prime borrowers and those with minimal funds available for down payment.

Now is a great time to buy!  There is a large inventory of homes to choose from, interest rates are low and there are easy qualifying loan programs once again.  Call for more details or if you need help finding a reputable lender.

Another popular feature are oversized garages, according to the National Association of Realtors 2007 Profile of Buyers' Home Feature Preference report.  Almost 60 percent of the 2,530 buyers surveyed indicated that a garage with two or more spaces was extremely important.  Garages are now being used for different purposes other than parking the car.  Garages converted into a home office with carpet, computer and WI-Fi connection are seen more often nowadays.

Knowing the latest trends can make a difference when you are ready to sell your home.

Inspite of what you hear in the media, it is a good time to buy now.  We will help you with the process.  Just give us a call.

This is a three-year law, applying to debts discharged from January 1, 2007, to December 31, 2009.

What does that mean?

I'm glad you asked. It means that the housing market will be picking up again. But remember, it is a temporary law. Which means that now is the perfect time to buy and sell your homes. No taxes for mortgage debt forgiveness? Sounds like a deal.

Wrong.

According to Money Magazine's Walter Updegrave, the housing market is as volatile as the stock market is. What you do need to do, however, is research.

Housing prices have been dropping steadily over the past few years. However, that doesn't mean that owners are still going to be ready to give up their homes for a greatly deteriorated price. Many will cling to original values, which means that in order to find a true bargain, you have to get up and look for something else. Look at recently sold homes in the neighborhoods. Check with different mortgage lenders to see what kind of rates they're willing to give you.

Ultimately, you'll probably do the best when sellers are feeling pressured to sell a home. The moral of this story is simple: The Housing market is not played by perfect timing. It's played by hours of research.  And that's what we're here for, to be your consultant so you can make an informed decision.