California Real Estate Sales

On April 5, the federal Home Affordable Foreclosure Alternatives Program (HAFA) went into effect with the goal of accelerating short sales by providing incentives and guidelines for short sales and deed-in-lieu of foreclosures.

Watch this video “Understanding Federal Short Sales Rules: HAFA (Revised, Apr. 5)” from National Association of REALTORS®

The Al D’Amico Tean has serviced the Los Angeles South Bay for over 30 years. In today’s economic climate 4 million American households are facing foreclosure and there are a number of FREE options that can drastically improve your family’s future. Contact us today.

How to Apply to the Making Home Affordable Program

Changes to FHA financing

90 day Flip Rule will no longer apply to FHA Financing. Previously, if an investor purchased the house, and then renovated it and put it back on the market (i.e. “flipped” it), he would not be able to accept an offer from an FHA buyer until the “flip” was over 90 days old. Well, this has been changed. The investment seller doesn’t have to wait to offer their “flips” to FHA Buyers.

Mortgage Insurance Premium will be increased from 1.75 to 2.25% Now your FHA loan will cost more, but you still have the option of paying this fee at the close of escrow or financing the fee into you loan.
All loans have Mortgage Insurance fees, but the way that FHA set up the loan with such low down payments, they didn’t have enough to cover the MIP. So they made the provision in the FHA Rules that the one-time premium fee would be charged and the buyer had the option of paying it upfront or financing it into the loan. Our preferred lenders can give you the whole story.

Seller Allowed Credit for closing costs will be reduce from 6% to a maximum of only 3%. This is really a good thing. The more you ask a seller to contribute back to your closing costs, the weaker your offer is in competition with other offers that don’t ask for seller credit.

No More Spot Approvals on Condo Complexes that don’t have FHA approval. It’s not just the buyer that needs approval on FHA, but if you are purchasing a condo, the entire condo complex needs to have FHA approval for safety and proper maintenance and management. We were able to apply for a “spot approval” on just 1 condo in the complex. Well, it’s now required that the entire complex has approval, which can take 90+ days to complete the application. Some lenders have systems and people in place that can shave considerable time off this application process.

You may qualify for a small cash amount at closing.  Find out if a Short Sale is right for you by answering the following questions.

Southern California’s housing market showed fresh signs of a comeback last month as first-time buyers took advantage of a federal tax credit aimed at keeping the fragile recovery on track.

And the tax credit program, which was expanded this month, may be helping boost the all-important move-up market as people who already own homes started traipsing through open houses looking for good buys.

“We are seeing signs of life,” said Glenn Kelman, chief executive of online real estate brokerage Redfin.

But whether the burgeoning interest translates into even more sales remains to be seen, experts say.

In October, the median price paid for all homes in six Southland counties rose to $280,000, up 1.8% compared with the previous month, and the number of homes sold increased 2.8%, San Diego research firm MDA DataQuick reported Tuesday.

Spurred by low interest rates and cheap foreclosure properties, as well as the $8,000 tax credit for first-timers that had been set to expire Nov. 30, the region’s median sales price has risen or held steady on a month-to-month basis since hitting a low in April.

One key test will be whether those who own a home will begin re-entering the market. Congress this month extended the controversial tax credit until April 30, expanded it to include a $6,500 credit for current homeowners buying houses worth $800,000 or less, and stretched the qualifying income limits to $125,000 for individuals and $225,000 for joint tax filers.

Real estate agents already are using the tax credit’s extension to attract potential buyers. And some say the extension has at least sparked curiosity.

In the first week of November, as Congress was approving the tax credit bill, traffic at real estate website Trulia.com, for instance, increased 75% to record levels compared with the same week last year.

On Sunday, a steady stream of potential buyers roamed through a two-story, five-bedroom home in Los Alamitos listed at $697,777. Brochures and an assortment of stale chocolates sat on a living room table as a stereo played jazz.

“Did you know about the new tax credit?” real estate agent Blair Newman asked prospective buyers.

Andre Wills and his wife, Kim, of Carson, said they were shopping for a new home because of the tax credit, lower prices and a desire to move into a neighborhood with a good school district.

“The market is down now, and so I want to take advantage of it,” Andre Wills said as his sons, ages 6 and 9, played basketball in the driveway.

Unlike first-time buyers motivated by deeply discounted home prices, many current homeowners faced See Full Article by Alejandro Lazo LA Times