November 1st, 2009
Did you know that a loan modification could lower your FICO score? I bet you did not know that it was considered a serious derogatory mark, in the same category as a foreclosure or short sale!  One person I know had her FICO score drop from the mid 700's to the low 600's after her lender put her on a trial loan modification. They reported her new payment as a partial payment.Â
Starting Monday, lenders have a more benign way to report government sponsored loan modifications. Under the guidelines put out by the Consumer Data Industry, lenders should report them a a loan modified under a federal plan. FICO - the leading provider of credit scores - will ignore this new notion for the time being. It will neither help nor hurt a person's credit score until FICO decides how to treat it.Â
If you are considering a loan modification now, please be sure to ask the lender if they will continue to report them as current during the modification period.Â
October 31st, 2009
Good news to report: President Obama is expected to sign a resolution passed late yesterday by Congress extending the current limits for Fannie Mae, Freddie Mac, and FHA loans through 2010. The limits were set to expire at the end of this year. This is especially critical for California, where more than 80 percent of all loans are financed by Fannie Mae, Freddie Mac, or FHA, and will help maintain the positive signs we are now seeing in California
October 29th, 2009
Rates for 30 year home loans have inched up, hitting 5 percent for the first time in nearly a month. Â The average rate in up to 5 percent, up from 4.92 percent. Â The record low of the of 4.78 percent hit in the spring. Â Rates are still very attractive for many people looking to buy a home. Â Last month, Fed Chairman Ben Bernanke and his colleagues agreed to slow down the pace of the program of the Feds buying mortgage backed securities, which has been keep interest rates artificially low. Â The Fed has now agreed to wrap up the purchases by the end of next March. Â It will be interesting to see what that does to the interest rates but I am pressed to say that rates will be heading back up. Â
October 29th, 2009
Homeowners in nine East Bay cities who sell or upgrade their properties starting in March must spend hundreds to thousands of dollars replacing their sewer lines under court orders obtained by the federal Environmental Protection Agency.  The orders are an attempt to stop the dumping of as much as 400 million gallons of partially treated sewage into the Bay each year as the result of overflows during rainy weather.  About 50 million gallons of partially treated sewage ended up in the Bay as recently as Oct. 13, when about 4 inches of rain fell on the East Bay.  Most of that was because of broken residential sewer lines that go from  homes to pipes in the street.  One court order, expected to be signed next month by all nine cities, requires the cities to strengthen existing laws or write new ones that require homeowners to fix or replace their lines when a home is sold or upgraded. It also will require those cities to fix their broken sewer collection systems.Â
The order, which includes the California State Water Resources Board as a plaintiff, applies to Oakland, Emeryville, Piedmont, Berkeley, Alameda, Albany, Kensington, El Cerrito and the Richmond Annex section of Richmond. Â Of the nine cities, six already have laws of varying strengths requiring homeowners to replace their sewer lines. Â But Oakland, Emeryville and Piedmont have no laws on replacement of residential sewer lines. Â Homes in those cities can make up 60 percent of the residential sewer lines.Â
September 2nd, 2009
10728 Wallace Lane - Dublin
Rare Plan 2 End Unit at California Highlands
3 Bedrooms
2 1/2 Baths
2 Car Garage
1387 Sq. Ft.
$438,900
For More Information check it out: www.10728WallaceLane.com
May 29th, 2009
“You dropped a bomb on me baby”…The Gap Band. And boy, what a bomb it was. This Tuesday, Mortgage Bonds had their worst one-day performance since October, losing an astounding 206bp. So…what the heck happened and what’s next?
Continue reading »
May 29th, 2009
How about this scenario the next time you refinance or apply for a mortgage: The real estate appraisal that used to cost $325 now costs $425 even though the appraiser doing the work is only getting $175 or $200.  Plus, your appraisal related charges may now be subject to add on fees that you would never heard of before - $50 to $100 extra in "no show" penalties if you get stuck in traffic and miss your appointment with the appraiser. Or an extra $50 to $150 tacked on if the property is worth more than $500,000. On top of all this, the mortgage broker requires you to pay for the appraisal upfront with a credit card or debit card, rather than including the fee with the usual lender origination costs at settlement. In some cases your card may be charged more than the anticipated cost of the appraisal itself. Worse yet, the person now conducting your appraisal may be new to the field, therefore willing to work for a cut rate fee and may not be as familiar with local value trends and pricing adjustments as an appraiser with more experience.
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If your mortgage application is denied by one lender, you could be forced to pay for a second full appraisal since the new lender may not accept the first one.Â
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This scenario is now being played out as the controversial new appraisal rules imposed nationwide on May 1, 2009 by Fannie Mae and Freddie Mac. Advocates of the rules vigorously deny the new system is flawed and say any increase in appraisal costs should be manageable for most consumers. The rules, which go by the name Home Valuation Code of Conduct, are intended to improve the accuracy of appraisals by eliminating pressure on appraisers from loan officers. The code pushes most lenders to use third party "appraisal management companies" that contract with networks of independent appraisers who have no direct contact with the loan officers. Mortgage brokers who formerly chose appraisers and kept a competitive eye on appraisal fees claim that Fannie's and Freddie's rules are adding 20 percent to consumer appraisal costs.
May 14th, 2009
New tax credits may mean new buying opportunities for you. As of march 1, 2009, home buyers in California of newly built homes may qualify for a tax credit of up $10,000. Below are some of the key highlights of the program:
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The tax credit is equal to 5 percent of the homes purchase price up to a maximum of $10,000.
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The tax credit is for the purchase of a builder certified newly built home. Builder must certify that the home has never been occupied.
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The home must be a principal residence and the sale must close on or after March 1, 2009 and before March 1, 2010.
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The tax credit does not have to be repaid, provided the homeowner occupies the home as his/her primary residence for at least 2 years.
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The credit will be provided in equal amounts (up to $3,333) per year, over three consecutive tax years, beginning with the year the purchase was made.
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No income restrictions.
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The CA tax credit can be used in conjunction with the recently enacted federal tax credit, provided: buyer is a first time buyer and the home was purchased on or after March 1, 2009 and before Dec. 1, 2009.
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The state has allocated $100 million for this program, available on a first come/first served basis.
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Call Jim Black from B of AÂ Home Mortgage today for more information on this program. Jim can be reached at 925.285.4898.Â
