2010 Extension of the $8000 Homebuyer Tax Credit Explained

Due to the success of the 2009 Homebuyer Tax Credit program lawmakers (on November 6, 2009) have extended and expanded eligibility for the $8000 Homebuyer Tax Credit into 2010. This popular rebate program proved to be an incentive to first time homebuyers and caused a direct increase in home sales at the end of 2009. The original program was due to expire on November 30, 2009. The Worker, Homeownership, and Business Assistance Act of 2009 extends this deadline for closing on the homes until April 30, 2010 or until June 30, 2010 for those buyers who have a binding contract in effect by the end of April 2010.

To qualify as a first time homebuyer the buyer must not have owned a primary residence in three years previous to the purchase date. Lawmakers…

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Los Angeles Short Sales Flooding the Market in late November 2009

Los Angeles Short Sale Market Report

As of 11/26/09 there are over 1,000 short sales being sold publicly via the SoCAL MLS/CARETS IDX data feed in Active status in the city of Los Angeles alone, 1,015 to be exact (this does not include anything listed in Los Angeles County).  790 of the 1,015 are listed below the Fannie Mae traditional conforming loan amount of $417,000 and 945 of the 1,015 are below the new super conforming loan amount limit of $729,000.  Of these 1,015 listings 310 are priced below $200,000.  Only 25 of the properties are listed at $1 million+ price range.  My takeaway:  Short Sales are typically much better suited for the first time FHA approved home buyer than REO's because

1. Most of them fall within a listing price range that there…

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Los Angeles Real Estate Lament

Los Angeles Real Estate Lament

I hesitate to make a list
Of all the countless deals I’ve missed:
Bonanzas that were in my grip-
I watched them through my fingers slip.
The windfalls, which I should have bought
Were lost because I over-thought:
I thought of this, I thought of that;
I could have sworn I smelled a rat.
And while I thought things twice,
Another bought them at the price.

It seems I always hesitate,
Then make my mind up much too late.
A very cautious man I am.

And that is why I never buy.

How Nassau and how Suffolk grew!
North Jersey! Staten Island, too!
While others culled those sprawling farms
And welcomed deals with open arms-
A corner here, ten acres there,
Compounding values year by year.
I chose to think, and as I thought,
They bought the deals I…

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How to find out who the REO lender for a Los Angeles Property is

Although it was originally brought to my attention by Phyllis Rockower of the Real Estate Investors Club of Los Angeles, this article was originally written by County Records Research, an Orange County based company that provides Foreclosure Data for Southern California Real Estate Investors.  The founder of this company Kurt DeMeire is a great source of knowledge on Foreclosure Investing, if you have the cash to buy properties at the courthouse steps, you may want to check out some of Kurts' Foreclosure Investing Training Videos or attend one of Ward Hanigans lectures on Foreclosure Investing.  I used to think this type of investing was too theoretical because nobody had this kind of money laying around but these days its seems like I'm the only chump…

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Struggling to get your REO-Foreclosure-Bank Owned property offer accepted? At least you aren't alone...

This is a funny video poking fun at the frusturations felt by many buyers and their agents during this "Unbelieveable, Once-in-a-Lifetime Buyers Market"... yeah right with the internet on the side of the sellers, great deals are no secret.  Everyone can find the deals, closing a great deal only happens from making lots of offers and having a little luck...

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Looking to buy Foreclosures in Los Angeles County?

Search for property in pre-foreclosure, going to auction at the courthouse soon, or bank owned in Los Angeles or Orange County on IETRealEstate.com 

http://www.ietrealestate.com/foreclosures.php

Want more information on how to buy these properties or what to be aware of when purchasing this type of property?  If so contact an IET Real Estate Agent.

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Condos owners now required to pay HOA dues and inside the walls insurance policy

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…

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Time running out on $10,000 tax credit for CA new construction homebuyers

Did you know that the state of California is offering a $10,000 tax credit for homebuyers buying new construction?

Well time is running out on this great opportunity.

For more information go to CA Franchise Tax Board website at:

http://www.ftb.ca.gov/individuals/New_home_Credit.shtml

Update: as of July 3rd, 2009 the state has run out of funds for this program.  Sometimes when sales people are telling you that you'd have to "Act Now" its actually true....

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California top 3 in the Nation for Foreclosure filings

According to this Realtytrac report for first Quarter 2009, California was #3 in the country in terms of highest percentages of foreclosure filings at ~1.72%, Arizona just beat us out ~ 1.85% and Nevada was the undisputed champ at ~ 3.7%. Realtytrac defines a foreclosure filing as an NOD, NTS or a bank repossession.

The national average is ~.63% of all U.S. Properties (had some sort of foreclosure filing during that same time period.)

Defaults in California are up by record numbers according to this Dataquick article.  Up 80% from prior quarter (Q4 2008) and 19% from prior year quarter (Q1 2008). 

~70% of loans originated by ResMae 8/06=>11/06 have defaulted, Masters Financial and Ownit were both North of 60% too during that time period, WOW!!...

…

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HVCC: what this means for Home Owners & Mortgage Brokers

As I understand it, the Home Valuation Code of Conduct (HVCC) was passed to erect a barrier between Loan originators having undue influence on appraisers.  Basically the Government is saying that Mortgage Brokers are twisting appraisers arm to inflate values so they enacted this law.  As I sit and try to understand this new law here are my initial thoughts:

1. Lenders have whats called in house "Appraisal Review".  These departments basically analyze comparable sales to verify that appraisers aren't doing things like excluding better comparables.
2. Why are some of the biggest lenders in the country allowed to run their own appraisal management companies?
3. Why is there no oversight of Appraisal Management companies, no licensing required.
4. There is a…

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