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CA $10,000 Home Buyer Tax Credit Takes Affect Today: http://ping.fm/QEAHv

HomePath.com
By Fannie Mae
Closing Cost Assistance and Appliance Incentive Extended for Fannie Mae Homes
Fannie Mae is offering a 3.5% incentive* for buyers who purchase and close on a Fannie Mae-owned home by June 30, 2010. Buyers purchasing properties listed on this site that are closed within this period may receive up to 3.5% of the final sales price for:
• Closing costs;
• The purchase of new Whirlpool® appliances by Fannie Mae; or
• A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%.
To be eligible for this incentive:
• Property sales must close by June 30, 2010
• Buyers must be owner-occupants, investors are excluded
*Lenders may impose their own limitations on the use of the 3.5% incentive, so buyers should consult their lenders for guidance.

In the market for a home or condo? Fill out an application today to get started. www.richnicholshomes.com/rohrs-team-member.html

FHA 90 Day Flip Rule Has Been Waived!

HUD announced on Friday that beginning on February 1, 2010 they are waiving the 90 day flip rule for up to one year. This is great news for many investors and homeowners allowing for FHA buyers to obtain loans on properties that have been recently purchased by investors instead of having to wait the traditional 90 days. This is HUD’s way of helping the housing market.

There are however some very specific requirements. Sellers are to hold title to the property eliminating the one day flips to FHA buyers and they are also not allowed to be related. If the sales price is 20% or more than the seller paid, the lender must document by way of a second appraisal what improvements were done to the home to support the increase If there wasn’t any work done the appraiser must provide justification for the increase in property value since being purchased by the seller The lender must also order a property inspection and provide it to the buyer who may be responsible for the cost of that inspection.

This waiver should help provide FHA buyers a greater opportunity to purchase the home of their dreams and also reduce the property inventory in the market. HUD is finally taking a positive step forward.

Attached is the link: HUD 90 DAY FLIP WAIVER REQUIREMENTS

Today’s Homebuyer Must Show Patience And Persistence

Housing inventory in the Southern California region is at a 3 year low. Today’s homebuyer needs to adapt a more aggressive buying strategy, continually previewing available houses for sale and consistently submitting offers. These offers should be your highest and best, based on current market value and not the listed price. It is also recommended the buyer avoids asking for any seller’s concessions such as repairs, closing costs, or home warranty. In today’s market of multiple offers, conventional loans or all cash offers are generally considered stronger than VA or FHA loans when negotiating with the bank. This creates a much larger out of pocket expense to the homebuyer and a faster closing time for the bank. Making your offers as seller friendly as possible will only enhance your opportunity to having it accepted.

The Effects of the 90 Day Foreclosure Moratorium On The California Housing Market

With the available houses for sale in Southern California already in short supply, California on June 15th 2008 enacted the California Foreclosure Prevention Act. Under this new law a lender or loan servicer must wait an additional 90 days more than normally required by law to foreclose (notice of sale) on certain mortgages. However, a lender or loan servicer can be granted an exemption if they have a loan modification program in place that meets specific criteria.

This New Law Contains Many Loop Holes

• The loan can not be made, held, serviced, or collateralized by California State or Local Housing Agency.


• This law also does not cover mortgages that have been bundled in to securities.


• It must be the first mortgage or deed of trust secured by residential property.


• Must have been recorded between January 1st 2003 and January 1st 2008.


• A notice of default has been recorded on the property.


• The residence has to be owner occupied.


• The borrower can not be in bankruptcy.

Since there are so many loop holes and the fact that most of the major banks have loan modification programs in place many homeowners will not qualify for this program. Consequently this new law should have little or no effect on bank owned homes coming on the market.

With more than 365,000 foreclosures in California since 2007 and currently an average of 80,000 to 90,000 foreclosure filings monthly there are going to be a continued supply of available REO properties for quite some time.