Cynthia Alfred's Blog

If you are one of the lucky ones that qualifies for one of the tax credits, congrats!  But don’t get so caught up in the excitement and hustle and bustle of moving to forget to actually CLAIM the tax credit.  It doesn’t automatically come to you, you have to ASK for it on your tax return.

 http://www.irs.gov/pub/irs-pdf/p4819.pdf… –  This is a summary document from the IRS that is surprisingly easy to understand, yet still chock-full of information about who qualifies for the various tax credits.

 http://www.irs.gov/pub/irs-pdf/i5405.pdf… –  This is the form you will need to attach to your return to claim the credit.  (Email me at  Nunlkme at aol.com and I will send you a copy of these forms if you prefer.)

Please note that the IRS still refers to the tax credits as the “First-Time Homebuyer Credit” even though within the document they give you the option to check the box stating that you are a “long-time resident” and not a first-time home buyer.

In addition to the form 5405, you will have to attach a copy of the settlement statement on the purchase from the title company.  This is referred to as the “HUD” or “HUD-1.”

By the way, you claim the credit on line 67 of your line 1040.  Again, they refer to the “First-Time homebuyer credit,” but that’s the right spot, even if you aren’t a first-time home buyer.

Please consult a tax professional for specifics related to your situation.

Brentwood Press, Brian’s Real Estate Update, February 26, 2010

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…what happens?  When can I purchase a home again?  How long will it affect my credit?  Is it worse than a foreclosure?  Can the bank come after me for the difference between the sales price and my current loan?

It’s a fact that short sales are on the minds of many people and the Federal Housing Administration (FHA) has taken notice.

On December 6, 2009, FHA rewrote their borrower eligibility guidelines for short-sellers looking to once again own a home.  These changes went into effect immediately, and for any past homeowner that has gone through a short sale, these changes are huge!

If you stayed current on every bill you had–including your mortgage for the last twelve months–while going through the short sale process, you can purchase another home the day after your short sale closes.  According to FHA’s Mortgagee Letter 09-52, as long as you did not pursue a short sale agreement simply to “take advantage of declining market conditions, and purchase at a reduced price a similar or superior property within a reasonable commuting distance” then you are eligible for an FHA insured loan.  However, if you were late on your mortgage, late on any revolving debt, or in the process of foreclosure while going through your short sale, then all bets are off.  Potential buyers in cases such as this have to wait a mandated thirty-six months (three years) before purchasing a home through FHA.

So while many of the original questions in this column remain a mystery solved only on a “lender-to-lender” case-by-case basis, we now have a nationally recognized policy for how shortly after a short sale you can purchase a home.

Brentwood Press, Trevor’s Weekly Mortgage Matters, Trevor Frey,  February 19, 2010

I want to share this article with my blog followers because I believe it offers some great insight for those who are facing the challenges of getting their offers accepted.  These are ideas I have shared with many of my clients and I hope you enjoy them also.

Offers That Stick

“The phenomenon of multiple offers, a situation in which multiple buyers submit bids for a house and end up competing for it, has returned.

It was prevalent in the strong market a couple of years ago and, now, with dropping prices, some sweet deals on distressed properties, relatively low interest rates, and an $8,000 federal tax credit for first-time buyers and a $6,500 credit for repeat buyers, some mrkets have heated up again.

In fact, California practitioners report an explosion of competitive bidding, and in some places supply actually is shrinking and prices are ticking up.

The result is that some buyers who are anxious and able to enter the market still are losing out.  For example, Andy Bencosme, 2009 president of the Arcadia Association of REALTORS, says one of his clients has bid on–and lost out on–12 properties.

Wondering how to prepare?  Keep in mind:

• Competent advise:  Seek REALTORS who can explain how competitive a market is, and where you fit with it, and who are able to prepare you for the process–and potentially disappointments–ahead.
• Investor competition:  You may be competing with investors delivering contingency-free, all-cash offers.  Be prepared to deliver your best offer, if need be.  Also, get prequalified for loans, have all paperwork in order, and know precisely how high you can afford to bid.
• No automatic low balls: Despite market challenges, don’t automatically make offers dramatically below asking prices.  If you’ve been eyeing a property that has seen multiple price reductions and you’re ready to jump, others likely have been doing the same.  It makes for stiff competition.  ‘Some think that if an asking price is $325,000, they can get that house for $250,000  That’s not the case,’ comments Bencosme.  Study neighborhood comparable properties that are for sale and that have sold and consult with your REALTOR to develop strong, realistic offers.
• Buy less:  Just one reason to look at property below your means is that you’ll have money in reserve to bid up if you need to.
• Short sales:  The process can be tedious and lengthy.  One California REALTOR says short sales acceptance dates can run two weeks to six months.  Negotiating short sales can be tricky,  so be certain your agent is experienced in the process.  And know whether you have the stomach for such a route.
• Bank-owned property:  Again, you may be competing with investors.  Work with your agent to determine properties’ worth.  And Bencosme suggests making yourself as attractive as possible.  That may entail offering a larger down payment, not requesting closing cost assistance, or agreeing to a shorter timeline. ‘The more you have your ducks in a row before making an offer, the more sellers will see you’re ready, willing, and able to complete the transaction,’ he says.

I hope you found this article useful.  I couldn’t have said it better.  I am an experienced agent who is ready to  assist you making strong,  attractive,  and realistic offers.

If you have questions on this or any other real estate topic, please contact me at (925) 216-0860.  To search the MLS for free for homes for sale, go to www.CynthiaAlfred.com

Cynthia Alfred, Realty World Delta Country, License No. 01414214

Certified Short Sale & Foreclosure Resource

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RISMEDIA, February 12, 2010—Thirty-year fixed mortgage rates on Zillow Mortgage Marketplace are currently 4.81%, down six basis points from 4.87% at this time last week. The 30-year fixed mortgage rates hovered at or below 4.80% for most of the past weekend and neared 4.75% on Monday.

Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers through the site, and reflect the most recent changes in the market. These are not marketing rates or a weekly survey.

The rate for 15-year fixed home loans is currently 4.27%, while the rate for 5-1 adjustable rate mortgages is 3.70%.

The volume of mortgage requests in the past week fell 9.4% from the prior week. Of last week’s requests, 34.7% were for refinance loans, 63.5% were for purchase loans and 1.9% were for home equity loans. The prior week, 34.5% of requests were for refinance loans, 63.5% were for purchase loans and 2.1% were for home equity loans.

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Great news, the property tax bills are now out and available online at the Contra Costa Country Tax Collector’s website.  If you are interested in checking out your new tax bill or if you need to check on a particular property to see if there is Mello Roos or special assessments, this is a wonderful way to do so.  Just follow these 7 easy steps below to view a property tax bill:

1. Go to www.co.contra-costa.ca.us/
2. Click on Department  (A drop down menu will appear, click H-Z)
3. Click on Treasurer-Tax Collector
4. Click Online Tax Review and Payment
5. Click on Secured Property Tax Bill
6. Enter property address or parcel number
7. Click View Bill  (The whole tax bill will then appear)

Good luck and call me if you have questions on this or any other real estate topic at (925) 216-0860.  To search the MLS for free and view homes for sale, go to www.CynthiaAlfred.com

This time of the year we establish goals or resolutions to improve our lives, business, personalities, etc.  I am sharing 10 health related resolution you may want to include in your resolutions.  They are as follows:

1. Drink plenty of water.
2. Eat breakfast like a king, lunch like a prince and dinner like a begger.
3. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants.
4. Live with the 3 E’s — Energy, Enthusiasm, and Empathy.
5. Make time to practice meditation, yoga, and prayer.
6. Play more games.
7. Read more books than you did in 2008.
8. Sit in silence for at least 10 minutes each day.
9. Sleep for 7 hours.
10. Take a 10-30 minute walk every day.  And while you walk, smile.

Have a blessed 2010.  Should you have questions on this or any other real estate topic, call me at (925) 216-0860.  To search the MLS for free and view homes for sale, go to:  www.CynthiaAlfred.com.

GREAT News! As of February 1, 2010, there will no longer be a 90 Day Flip rule for FHA.  This means investors will now accept more FHA offers and allow more buyers to qualify for properties.  It’s only good for 1 year and can be terminated at anytime by HUD if they find out it leads to increases in defaults.  It’s going to be important to move these properties quickly and it will be important that buyers are pre-approved with a lender that can close FHA deals in a timely manner.  For more information regarding this rule, please give me a call at (925) 216-0860. To search the MLS for free and to view homes for sale, go to: www.CynthiaAlfred.com

FHA offers low down payment options, eligibility with less than perfect credit, a loan at a reasonable cost, and help if there is ever trouble making the mortgage payment. Because an FHA mortgage insures the lender against loss, an FHA mortgage typically has an interest rate that is competitive with the best in your market and lower than the rates charged for subprime and other non-prime mortgages.
FHA not only helps people buy a home, but helps them keep it as well. In return for protecting lenders against loss, FHA requires financial institutions to offer assistance to borrowers experiencing difficulty making mortgage payments.

If you have questions on this or any other real estate topic, call me at (925) 216-0860.  To search the MLS for free and view homes for sale, go to:  www.CynthiaAlfred.com.

Getting your financial footing after a foreclosure takes time and requires responsible behavior, but you won’t have to wear the scarlet “F” forever.  A foreclosure will remain on your credit report for seven years, but you can start to improve your credit score now.

Learn good habits.  “Most lenders want to see two years of positive credit behavior,” says Gail Cunningham of the National Foundation for Credit Counseling.  So don’t fall for quick-fix credit repair schemes.  Follow tried-and-true strategies.  Keep your card balances low (no more than 10% of your overall limit), and never miss a payment.

Apply for new credit.  The easiest card to get is often a secured credit card.  These cards require that a deposit be made to establish a credit line, which typically will be equal to the amount of your deposit.  Just make sure account activity is reported to credit bureaus every month to rebuild your credit.

If you have questions on this or any other real estate topic, call me at (925) 216-0860.  To search the MLS for free and view homes for sale, go to www.CynthiaAlfred.com

Sharon Epperson    USA Weekend

• FHA adopted the industry appraisal standards permitting the use of the Fannie Mae appraisal forms with no additional specialized documentation, no Valuation Conditions form or Homebuyer Summary.
• FHA has eliminated unnecessary requirements to make minor repairs
• The homebuyer and the seller, individually or jointly, can pay closing costs as agreed to in the sales contract.  FHA no longer limits what closing costs the homebuyer is permitted to pay.
• Caps on payment and debt-to-income ratios are more generous than most standard conforming mortgage products.  The payment-to-income ratio may not exceed 31% and the debt-to-income ratio may not exceed 43%.
• A minimum credit score is not required.  In fact, one may not be turned down for an FHA mortgage solely for lack of credit history.
• The buyer’s entire cash investment–as little as three and one-half percent–can be a gift from a family member, employer, charitable organization or local government entity.
• The seller can contribute up to six percent of the home’s price toward closing costs through a seller’s concession.
• There are no prepayment penalties on FHA-insured mortgages.
• U.S. citizenship is not required but, for those who are not citizens, they must be lawful permanent or non-permanent resident aliens with a valid Social Security Number.

Since FHA was created in 1934, it has helped more than 34 million families become homeowners, many by working with their REALTOR to achieve their dream of homeownership.  Backed by the full faith and credit of the Federal government, FHA-insured mortgages are one of the safest and most affordable types of mortgages available to homebuyers. 

If you have questions on this or any other real estate topic, call me at (925) 216-0860.  To search the MLS for free and view homes for sale, go to www.CynthiaAlfred.com

National Association of Realtors