IET Real Estate Los Angeles Blog

With the changes happening to the basic underwriting guidelines of Conventional loan programs so quickly I thought I'd create this blog post to highlight *_some_* of the potentially deal killing details that I've come across in the course of my own business...

  • MI for conforming loans on Condo's is on the verge of being extinct (consider FHA as an alternative).  41% max backend DTI for all MI companies.  Doesn't matter what DTI Lender will allow.
  • Reserve Requirements when purchasing Investment Properties. 
    Fannie Mae Announcement re: borrowers purchasing multiple investment properties
  1. When the borrower will own one to four financed properties (including the subject property) the reserve requirements are:

    * two months of reserves on the subject

22,764 Views, 1 Comment

Concerned about crime in the neighborhood you are considering buying into?  Use this website to review statistics on past crime in your new neighborhood.

http://crimereports.com/

Great source of data, uploaded directly from Local Law Enforcement Agencies.

1,565 Views, 0 Comments


With the introduction of the Home Affordable Modification Program (HAMP) many homeowners that are not currently behind on their mortgages are being faced with a situation where they are being offered potential relief.

Obviously their first reaction would be to accept this relief but the government had done something smart (yes, give credit where credit is due).  They made it mandatory for loan servicers to report derogatory history to the credit bureaus for all borrowers who participate.  The creators of HAMP did this to weed out the people that can afford their payments but want a modification of their loan terms on the taxpayer dollar.  

Those in true financial need won't mind, they are most likely already behind on their payments and their credit…
11,420 Views, 0 Comments

HO-6 Insurance Requirements for Condominium and PUD Properties 

HO-6-CONDOMINIUM UNIT OWNERS COVERAGE

 

Here is an excerpt from a memo sent to us by one of our biggest lenders: 

Borrowers must show evidence of hazard insurance coverage for all condominium projects with attached units, including two- to four- unit projects, that covers fixtures, equipment, and other personal property inside individual units if they will be financed by the mortgage.  Borrowers must show evidence of a “walls-in” coverage policy (commonly known as HO-6 policy) unless they can document that the master policy provides the same interior unit coverage. The master policy must include replacement of improvements and betterment coverage to cover any improvements that the

1,663 Views, 0 Comments

 

California Attorney General Jerry Brown unveiled a new website aimed at ending abusive practices in the loan mod industry 

Overall this is a good thing, I think consumers should make sure that they are dealing with a licensed person/company when attempting a loan modification.  If things don't work out their should be an accountable individual or entity to deal with for the consumer.  Getting a signed advanced fee agreement is a must.  I'm still not completely convinced that homeowners get the best modifications when representing themselves though...

Also debatable is whether certain homeowners will ever face reality.  The homeowner that choose the 1% option arm over the 5.75% 30 year fixed against the advice of more conservative voices because they

2,223 Views, 0 Comments

Greater Los Angeles Area Rental Values

Investors:

Thinking of buying an investment property and want to know what current market rents are?

Landlords:

Want to know if your maximizing the value of your property?

Renters:

Want to know if your paying fair market value for your unit?

Here is a Zilpy link, bookmark it, its a cool service

http://www.zilpy.com

Los Angeles - Craigslist is a good source too but too many scam artists on that site for my tastes.

5,086 Views, 2 Comments

As I said in my last blog SB94 will have an effect on how consumers handle their mortgages SB94 has already passed the Senate and the community and now goes to the assembly there are many reasons to think this will help as well as many reason to think it would not, the bill it self is as follows 

                 DESCRIPTION   

          This bill would prohibit persons from charging advance fees to  
          borrowers in connection with a loan modification, and require  
          those who wish to charge a fee for loan modification services  
          (after performing them) to provide a specified notice to  
          borrowers regarding other options available to the borrower.   
          The violation of those…
2,035 Views, 0 Comments

Never pay for Directory Assitance on your cell phone again.

I know most people have smart phones but it can be time consuming to look up info on the internet from a PDA.

Google has a free 411 service set up: GOOG-411 

I've tried it, it works well.  Its a completely automated system and you don't get to speak to a live person so if the system doesn't understand you or there is too much back ground noise you may not get good results.  I tested it with a "roebucks juice" in "torrance,ca" query and the results were accurate.

 To apply this to real estate, it may be handy next time you need a local service contractor, i.e.- plumber, electrician, roofer, termite, carpenter, window repair etc., etc.

 

 

 

2,925 Views, 2 Comments

HOA Assistance Program offered through PWR

HOA Assistance program offered through my local association of realtors (Pacific West Association of Realtors)

Program offered through Pacific West Association of Realtors for homeowners in Southern LA and Northern Orange counties.  Funds for this program are from a charity account setup by fellow Realtors and a grant from a California Association of Realtors fund.  The program will pay up to $250/month & up to $3000 per year to the Home Owners Association for the qualifying borrower.  This program has helped over 30 families since its inception in 2007

 

Be sure to check with our office for qualifying guidelines and available funds before applying.

1,702 Views, 0 Comments

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