Los Angeles First Time Buyer | How much truth is in that 20% down statement?

My fiancé was just informed by one of her friends that in today’s market we are going to have to come up with 20% down at the

table for whatever home we are looking to purchase. How much truth is in that 20% down statement? We would like something to start off with in the range of $250,000 - $300,000. $50,000 is A TON O CASH! Thanks Stephen!

Christopher

My Answer: $50K IS at TON O CASH!

No disrespect to your friend Christopher but in many situations, their statment is FALSE.There are at least 2 loan programs I’m aware of that require only 3-3.5% Down.

The loan programs are perfect for the Los Angeles First Time Buyerand they are FHA and Home Path.

Here are 3 Excellent Points relating to these loans.

1. They are the most lenient with your Credit score

2. With FHA, the money for your down payment can be gifted from friends or family.

3. The seller can pay up to 3% of your closing cost.

There are a couple of challenges with FHA

1. They are strict about the condition of the property they will loan you money on (actually good for you)

2. Some sellers are hesitant to accept FHA offers (often bad advice from their agents, FHA loans is great and I’ve never NOT had AND FHA Buyer close! And an FHA loan is good for you because you’re buying a solid home)

3. If you are buying a Condo or Town Home the whole complex must be FHA approved. With Home Path, the property must be Home Path stream lined. In other words, you can’t just make “Home Path” offers on any home, condo or town home.

4. You will pay mortgage insurance.

My last 5 clients were all Los Angeles First Time Buyers and they did FHA loans. I had them in escrow within 2-4 weeks and they closed in 30 days!

Points to keep in mind:

1. Find a mortgage broker that specializes in FHA and Home Path Loans. A good lender can make or save your deal, a bad one can break it!

2. Have a savvy Realtor that knows what types of properties qualify for FHA. Just like the lender, A good Agent can make the deal and a bad one can break it!

Here's a dorky yet informational Video Blog I put together on FHA Loans.

Homes For Sale Pasadena Ca & Los Angeles

Copyright © 2010 By Stephen Munson,Munson Realty homes for sale pasadena ca*Los Angeles First Time Buyer | How much truth is in that 20% down statement?Los Angeles First Time Buyer,Los Angeles First Time Buyers*

Pasadena Old Town-Power Walk Through Historic Old Town

Pasadena Old Town-Power Walk Through Historic Old Town

I maintain that one of the fastest, healthiest and least expensive ways to get to know your neighborhood is to Power Walk It!

Today, the streets are wide and filled with awesome shopping opportunity and modern day parking meters that take credit cards.

It’s hard to imagine that the Facades of the buildings use to be mainly Victorian and and the streets were much narrower in the 1920’s before the city petetion have the street paved, widened and all the buildings were set back 14 feet on both sides of Colorado Blvd. Now most of the buiding facades are Spanish Colonial Revival and Art Deco façades.

Don’t be afraid to walk or jog through the Alleys of Pasadena Old Town because that’s were you will see a lot of the original construction and even a couple original Villas tucken in the alley were service people use to live back with Pasadena Old Town was as Resort Town in the 1880’s

Did you Know THIS about Pasadena Old Town?

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Pasadena Old Town Was Established In: On March 2, 1888, South Pasadena officially incorporated Population: 25,824

Pasadena Was Named After: The name Pasadena literally means "valley" in the Chippewa language but has been interpreted to mean "Crown of the Valley"

Famous Residents That Live or Lived in.

• The Van Halen brothers, Rock Musicians
• David Lee Roth, Rock Musician
• Jackie Robinson, Baseball Legend
• Robert Reed, Actor (best known for role as Mike Brady on "The Brady Bunch")
• George Reeves, Actor (best known as Superman)
• Kevin Costner, Actor
• Sihran Sihran, Assassin of RFK
• Albert Einstein, Physicist
• Wil Wheaton, Actor
• Howard W. Hunter, President of the Church of Jesus Christ, Latter Day Saints (Mormons)
• Bobby Fischer, Chess player
• Amelia Earhart, pilot
• Tony MacAlpine, Guitarist

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Here are some of the shots I’ve taken on 2 recent Power Walks through Pasadena Old Town.

Library Ruins: Last remains fo the Library after the 1933 Earth Quake.	Photo of Pasadena Old Town First School House.
One of those original Villas tucked away in an alley used by service people back in the 1880s.	An original Terra Cotta Bricked Building (That’s not paint!)
One of the last remaining Signs Painted on a Building this sign is for “Cluney’s Pasadena Theatre”	Fun Fact: Julia Child, Celebrity Chef, was born in Pasadena, CA

I hope you enjoyed my Pasadena Old Town Power Walk tour. And just so you know, not only did I learn more about Pasadena Old Town and capture all of these cool photos, but I burned over 600 calories while having a lot of fun!

Pasadena Old Town-Homes For Sale Near and Around

Copyright © 2010 By Stephen Munson,Munson Realty,homes for sale pasadena ca*Pasadena Old Town-Power Walk Through Historic Old Town, Pasadena Old Town*

Hardship For Short sale | What qualifies as a hardship?

Hardship For Short sale | What qualifies as a hardship?

Here is a Simple “Hardship Test” that will give you an idea if you qualify for a Short Sale.

Ask yourself:

• Have you lost your job since you’ve purchased your property?
• Have you become disabled or had a bad accident since purchasing the home?
• Have you been recently divorced
• Have you experienced a death of a spouce
• Have you had a business failure
• Have you experienced a natural disaster
• Have you experienced sudden illness
• Are you encountering Large Medical Bills for you or your family since the purchase
• Have you been relocated to another city or state?
• Has the interest rate on your loan gotten out of control and beyond your ability to afford the payment?You must be able to prove hardship to the lender. The lender will look at each individual on a case by case basis. You may also have a Hardship not listed above, follow your instinct as well. If your not sure that your personal “hardship” qualifies, ask! (create a short sale email)

What Does NOT qualify for hardship?

• If it appears as though you have intentionally used lines of equity on your property to buy toys and take trips, especially just before you attempt or consider a Short Sale in Los Angeles,you will have a very difficult time proving Hardship for a Short Sale.
• Sudden realization that your home is no longer worth what you purchased if for a couple years ago is not a Short Sale hardship and not a reason to sell your house as a short sale in Southern California.

If you believe you pass the “Hardship Test”, it is most likely time to proceed with the Process of a short Sale. It is now time to contact Us and we will quickly be able to confirm if indeed you qualify for a Short Sale. Once that is established, we will begin the Listing Process and guide you through the following steps:

1. Put your Hardship Letter together
2. Give us (your agent) Permission to Contact your lender to negotiate on your behalf and determine what you owe to date.
3. After we determine the market value we will set a listing price and your home will be listed and Marketed on the MLS.
4. Once Offer is Received and you have approved the offer, we will negotiate with your lender for their approval of the Short Sale
5. Once Short Sale is approved by lender, escrow process begins
6. After all parties meet their obligations escrow is closed and short sale is successfully closed.

What you can and should do now if you think you are going to short sale:

• Gather Financial Documentation including: Tax statements, paycheck stubs, medical bills, mortgage statements and anything you think you will need to support your Hardship case.

• Contact Legal, Tax and Financial Professionals for their advise on how the short sale will

If you think or believe you qualify for a short sale and are ready to take the next step please contact us immediately. There is no fee for a consultation.

You may contact us by clicking HERE

Or Calling

1-877-636-0444

Or Email us at getinthehouse@gmail.com

And on a more personal note: We have personally had friends and family experience hardship and have to Short Sale their homes. It is not an easy decision but once the process is over there is such a feeling of freedom that will allow you to have a more productive life and eventually be able to enjoy home ownership again if you choose to do so. Before you do anything else, let go of any negative judgement you have about your situation. We all experience challenges in life. Many of the worlds most successful people have had much larger challenges than you are probably going through right now. Like them, you must detach emotionally and realize this is a business decision and indeed, this too shall pass! Copyright © 2010 By Stephen Munson, Munson Realty|Hardship For Short sale | What qualifies as a hardship*Hardship For Short sale ,What qualifies as a hardship*

What Is A Non Judicial Foreclosure

What Is A Non Judicial Foreclosure| Non-judicial foreclosures are processed without court intervention, with the requirements for the foreclosure established by state statutes. Most Foreclosures in California are Non-Judicial foreclosures.

In a Non-Judicial Foreclosure there must be a power of sale clause in the mortgage/loan document or deed of trust. This is a clause saying that the home owner agrees to allow the lender to sell the home in the event the buyer defaults on the loan. Of course there are a number of steps involved that allow the home owner to “make good” on the loan by catching up payments and even renegotiate the loan so they can stay in their home.

If that’s just not an option the homeowner can exercise, eventually the Lender will publish a Notice of Default, a Notice of Sale will be mailed to the homeowner, posted in public places, recorded at the county recorder's office, and published in area legal publications. After the legally required time period has expired, a public auction will be held, with the highest bidder becoming the owner of the property, subject to their receipt and recording of the deed.

If the home owner as not already moved, they will be evicted If it can’t be sold at auction the lender takes back the property through the "Foreclosure" procedure and will eventually sell it on the MLS to recover their losses.

Today, one of the most common alternatives with less of an impact on your credit is for the troubled home owner to “Short Sale” the property.

Here are some other Foreclosure Alternatives:

• Refinance | If your are current with your mortgage payments then this is a pretty good option. But typically speaking, distressed homeowner don’t have any equity in their home and their credit is shot so this not going to be an option for many.
• Do nothing or walk away | The Implication is clear hear and the lenders only option will be to foreclose on your property.
• Lender Workout | Your lender may be willing to:
• Add the missed payments to the existing loan balance.
• Change the interest rate, including making an adjustable rate into a fixed rate.
• Extend the number of years you have to repay.
• Sell And Bring Cash to Closing
• Deed in lieu of foreclosure

If you think or believe you qualify for a short sale and are ready to take the next step please contact us immediately. There is no fee for a consultation.

You may contact us by clicking HERE

Or Calling

1-877-636-0444

Or Email us at getinthehouse@gmail.com

Copyright © 2010 By Stephen Munson, Munson Realty|What Is A Non Judicial Foreclosure*What Is A Non Judicial Foreclosure* What are Alternatives to Foreclosure?

Realtor Kickbacks-Referring Clients To Vendors

Realtor Kickbacks-Referring Clients To Vendors-As agents we all work with vendors that we know and trust will treat our clients fairly and honestly. For example, I have a Lender that is excellent with FHA loans. I know he will get the job done and handle any issues that often arise with a challenging FHA loan. And we all have our favorite home inspector that is thorough, fast and fairly priced.

I can see where there may be a question in some of our clients minds as to why we are so passionate about using our favorite vendors. Perhaps they think we may get a “cut” or “Realtor Kickback” from these vendors.

So I would like to be clear in this blog that RESPA prohibits Realtor Kickbacks or anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan.

In addition, RESPA prohibits fee-splitting and receiving unearned fees for services not actually performed. Examples of such prohibited fee arrangements include:

• Lenders giving a referral fee to a real estate agent referring a purchaser
• Title companies giving kickbacks to lenders who refer loans to them in exchange for something of value
• Appraisers sharing the appraisal fee with the lender who ordered the appraisal for a borrower.

On a personal level (legal or not) I see “Realtor Kick Backs” as a huge conflict of interest on many levels. I’m very happy with my commissions and don’t need to compromise my integrity by getting a “cut” of all the action so to speak.

My whole intentions of recommending a Lender or other vendor to a client is to provide them with quality service and someone who will get the job done in an responsible and ethical fashion. In fact I provide a “Client Resources” page on my web site to give my clients educated choices.

Here are Specific California Regulations Regarding Disclosure by Agents Receiving Compensation from a Lender or Others: In addition to the disclosures for agent compensation required under RESPA, the California Business and Professions Code Section 10177.4 prohibits certain referrals for compensation by real estate licensees. A real estate licensee may not receive compensation for referring customers to any escrow agent, structural pest control firm, home protection company, title insurer, controlled escrow company, or underwritten title company. Under Penal Code Section 641.4, any receipt of such compensation from an employee of a title insurer, underwritten title company or controlled escrow company is deemed commercial bribery for which criminal prosecution and penalties are possible.

Copyright © 2010 By Stephen Munson,Munson Realty-Homes For Sale Pasadena*Realtor Kickbacks-Referring Clients To Vendors,Realtor Kickbacks,Realtor Kickback*

Los Angeles First Time Buyer | You Must Be Armed And Ready to Play in this market

Los Angeles First Time Buyer | You Must Be Armed And Ready to Play in this market- It's getting crazy out there again! Multiple offers, properties flying off the market. I really enjoyed the Lull we had at the beginning of the summer, It seemed like all of my clients were in escrow within a week or two. We even had the upper hand in many negotiations. But now, if you are a Los Angeles First Time Buyer be prepared!

If you want to find a home, take advantage of today's low interest rates and be a well informed buyer, be prepared and keep these 8 basic principles in mind for our current market.

• Have your finances in order. You must speak with your lender (bank) and get pre-approved for the loan. Do your "looking" on line but when it comes to "touring" be prepared! An experienced Realtor with your best interest in mind will not take you looking at homes until you've taken this first essential step.
  
• Well priced homes in good condition move fast and with multiple offers. It is not uncommon for the final sales price to end up 5% Plus above asking.
• Look at properties 5-10% below the top of your budget. So you have some room to negotiate!
• Go see it now! If you love it, so does everyone else. Go, go go!
• The average buyer will see 25+ homes.
• The average buyer will write 5-12 offers before getting one accepted.
• Write Strong Offers! This is not a "Low Ball" market. (The exception to that may be to an overpriced home with 30+ days on the market).
• Don't settle. Be realistic of course but this is your HOME! Move swiftly, make good offers but be the home meets a great deal of your basic desires!
  

Los Angeles First Time Buyers Must Be patient and never give up! Persistence pays off! Make sure your agent is putting you in back up positions on properties where they didn't accept your offer. Then, keep pushing forward, you will find a home!

Homes For Sale Pasadena & Los Angeles

Copyright © 2010 By Stephen Munson,Munson Realty homes for sale pasadena ca*Los Angeles First Time Buyer | You Must Be Armed And Ready to Play in this marketet,Los Angeles First Time Buyer, Los Angeles First Time Buyers*

Homes For Sale Pasadena Ca| No Photos, No Description-NO SALE!

Homes For Sale Pasadena Ca| No Photos, No Description-NO SALE!

Let me begin by saying there are many good agents out there. For the most part my experience as an agent has been pretty darn good here in the Pasadena and the LA area. Unfortunately though, there are a few agents who simply take their business for granted and for the most part, snap a photo of your home and put it on the MLS, that's it!

My heart goes out to the sellers that have unknowingly placed their trust with one of their biggest assets into an agent who could care less. Which boggles me because I know the goal of a great agent is at the very least to sell the home! Duh... Not only to sell the home, but to sell it for the most the market will bear, with the pride of creativity in their marketing and integrity with their client (seller). Not to mention good old fashioned service!

So when I see a listing such as the one I'm posting below, it totally frustrates me to no end to see so clearly that this home has so much potential but has been given so little attention in even the basics of marketing.

Take a look at this Home For Sale in Pasadena Ca....(I've intentionally left out the Agents Name and address of property)

Noice:

• Only 1 photo
• No Description
• Instead of description, scary disclaimers.
• 268 Days on the market, still active to date.

Okay, let's assume:

• It's Bank Owned
• Over Priced (seller won't budge)
  
• Ugly (It's not by the way)
  
• whatever...
• Even if I'm wrong and it's sold but status hasn't changed

At the very least the agent could

• Add a couple more photos
• Describe the interior of the home (even if it's a fixer)
• Talk about the neighborhood
• Talk about special financing

This is our craft, it's not enough to input a listing into the MLS and walk away. Have pride in your work. If it doesn't sell at least you can say, I did EVERYTHING I could, I exhausted all efforts and it just didn't work out.

Copyright © 2010 By Stephen Munson,Munson Realty Pasadena*Homes For Sale Pasadena Ca|No Photos, No Description-NO SALE!*

Overpriced Homes-Sell Slower and For Less

Overpriced Homes-Sell Slower and For Less If there’s anything we can take away from the plethora of Bank Owned Foreclosures is they certainly know how to price a home to move!

I maintain that you almost always shoot yourself in the foot by overpricing your home. Your home will almost always sale at or above market value by pricing at or below market value.

So why is that? Well think back at when YOU were buying a home. Remember when a “great deal” came on the market and everybody and their agents were “swarming” to the open house? You placed your offer only to find out their were 10 other offers and they were going above the asking price? This “bargain price” created an auction affect and got people excited. THAT is how banks are pricing their homes and if you want your home to move quickly and for the most amount of money, this is a winning strategy.

So why don’t sellers do it? I think it’s because there’s a little voice inside of our head (and pocketbook) that says “what if”.

“What if”- I can get $50K over market value. (even if someone were excited enough about your home to pay $50K over appraised value, their lender won’t loan the money if the value isn’t there. No loan, no buyer)

“What if”- I don’t get multiple offers and I only get one offer (May be still overpriced!)

Often fear (and greed) hold us back from making smart choices! Don’t feel bad though, even Real Estate Agents are guilty of senselessly overpricing their homes. Somehow when it’s our turn to sell all of our “market knowledge” becomes goo and leaks out of our ears! It’s like the hairdresser with bad hair!

The bottom line is, almost always, an Over Priced House will sit on the market longer and sell for less than it should have had it been priced strategically from the beginning.



Copyright © 2010 By Stephen Munson,Munson RealtyPasadena|Overpriced Homes-Sell Slower and For Less*overpriced homes,overpriced house

Homes For Sale Pasadena Ca -Search

Copyright © 2010 By Stephen Munson,Munson Realty,homes for sale pasadena ca*Homes For Sale Pasadena Ca-Search