Understanding Your Homeowner's Insurance ...before it may be too late.

For nearly all consumers, owning a home represents a large investment. But suppose your home is vandalized or damaged by a storm? Having insurance can protect you from such unpredictable losses.

When purchasing insurance, it is important to READ YOUR POLICY. Your policy is the contract between you (the insured) and your insurance company. The time to learn about your coverage and conditions is not after you have suffered a loss but before, while you have the opportunity to discuss the policy with your agent. If you do not understand the policy or want to modify it, contact the insurance agent or company for additional information. Also important is the written application for insurance that usually becomes part of the policy. Carefully examine the application before signing it to make sure the information is accurate and complete.

Choosing A Policy
When insurance policies are sold, they are issued on either a monoline basis or as a package policy. A monoline policy contains only one type of coverage, such as liability insurance, while a package policy includes several different types of coverage, such as property insurance and liability insurance. A package policy is generally less expensive than insurance coverages purchased separately. Homeowners policies are package policies that include property, liability, injury to someone on your property due to your negligence or that of a member of your family; or somebody else's property is damaged as a result of your negligence.

It is important to be aware of the different perils that you are insured against. It is up to you to determine whether you need the most extensive type of coverage or whether your insurance needs can be met with a basic policy. Some of the coverages excluded under a policy, such as earthquake damage and power interruption, can be "bought back" for an additional premium. Correspondingly, some coverages listed under a policy can be excluded, such as offpremises theft, resulting in a reduction in premium. However, some coverages, such as flood insurance, are always excluded and the only way to obtain them is through Federal insurance programs.

For more detailed information, be sure to contact a reputable insurance agent or sales representative.

Most Common Types of Homeowner's Insurance

Homeowners - 1 (HO-1) policy or Basic Policy, insures your home and contents against listed perils. Most insurers sell more comprehensive policies, such as the Homeowners-3, which includes these and other perils: Fire, Lightning and Smoke Damage, Windstorm and Hail, Glass Breakage, Vehicle or Aircraft Damage, Bodily Injury Liability, Damage to Property of Others, Personal Property (at Home), Personal Property (away), Burglary and Theft, Riot and Civil Commotion, Cost of Legal Defense, Explosion, Vandalism and Malicious Mischief, Medical Payments, Additional Living Expenses (If forced to live away from home temporarily).

Homeowners - 2 (HO-2) policy or Broad Form Policy, insures your home and contents against the perils in the HO-1 policy, plus other additional listed perils: Falling Objects, Water From Plumbing Systems, Electrical Damage to Appliances, Weight of Ice or Snow, Freezing of Plumbing Systems, Rupture of Water Heaters and Heating Systems.

Homeowners - 3 (HO-3) or Special Form Policy is the most widely used policy by homeowners. This policy covers your home for all risks of physical loss, except those that are specifically excluded, such as flood, earthquake, war, nuclear accident, etc. Check your policy for a complete listing of perils excluded. Coverage for loss of your home's contents is also covered for many of the same perils for which your home is covered.

Tips on Evaluating Your Home and Personal Property

The first step in determining how much insurance you will need is to make an analysis of the value of your home and your personal property within it. In determining the value of your home, you must calculate how much it will cost to replace it if your home were totally destroyed. You can enlist the help of your insurance agent in determining this figure. In fact, most insurance companies make a physical inspection of your home when they first insure it. Using formulas that take into account whether your home is of brick or wood frame construction, total area, number of floors, number of rooms, etc., the company will be able to give you an accurate replacement cost value.

Determining the value of your personal property will require an extensive analysis on your part. You should go through each room of your house and list every piece of furniture and fixture within it. As you compile your inventory, you should supplement it with receipts indicating the purchase price and date of purchase and photographs of major items. Your inventory should be updated on an annual basis or, at the very least, whenever you purchase a large appliance or piece of furniture.

Some people periodically videotape all their possessions. If you videotape, make sure all the drawers and/or doors of your furniture are open so you have a record of what is stored. When complete, you should store your inventory or videotape in a safe place away from your home, such as your safe deposit box. You might also store this information in the home of a friend or relative.

The Trivia Block

The average U.S. farm has 467 acres; the average Japanese farm has 3 acres.

Easy outdoor staging tips to make the right first impression

One of the fastest growing real estate considerations in America today is something called "staging" your house, meaning furnishing, decorating, outdoor clean-ups and ultimately arranging homes in such a way to attract increased buyer interest.

A recent national survey indicated that staged homes sold on average in 13.8 days, while non-staged homes sold in 30.9 days. Because your home is competing with other nearby comparable listings, staging your home is important for getting the best price when you sell. Here are some outdoor staging tips to optimize your curb appeal, give you a competitive edge vs other homes for sale in your area, and sell your home quickly.

• Ensure your flowerbeds are turned, weed free, and properly edged. All hedges should be evenly trimmed and the lawn regularly maintained. It’s a clear indication that you are a conscientious homeowner and that you value your home’s appearance. If you’re not into gardening, paying for a quick landscaping job might be well worth the investment.
• Check to make sure all outdoor lighting is in good working order. Consider leaving them on slightly longer than normal to encourage potential ‘drive-by’ viewings from interested buyers during the evening hours.
• Ensure your front entryway is presentable. A great exterior accent piece is a freshly painted front door, which, when combined with a few seasonal potted plants, will create a more welcoming entrance way for prospective buyers.
• Polish the front doorknob or handle and replace a dented or tarnished mailbox. Make sure your home address numbers can be easily seen from the street to facilitate potential viewings.
• Check if your aluminum siding or brickwork needs washing or your gutters need cleaning. If dead leaves are spilling over from your eaves troughs, buyers tend to get a negative impression.
• If you have a wood deck, make sure the stain or paint looks fresh.  Good-looking patio furniture will contribute to the look of the backyard.  If yours looks slightly run down, consider purchasing a new set – something you can take with you when you move.
• Clean up yard clutter and put away the kids’ outdoor toys to help enhance the size of your yard.

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Selling Tips in a Buyer’s Market

A buyer’s market means it’s the seller’s turn to be flexible, especially with sale terms. Purchase price, closing dates, move-in dates, storage, appliances, window treatments, points and fees may all require a little negotiation. Whatever the terms, don’t let personal feelings stand in the way of a good deal.

The basics

In a buyer’s market, curb appeal, cleanliness, overall good condition and updates are especially crucial. Any little flaw should be taken care of before the first buyer drives up.

• Attend open houses in your neighborhood to see what “sell-ready” really looks like. If you’re shy, ask your Better Homes and Gardens® Real Estate sales associate to walk you through a few sell-ready examples.
• Back home, start with the exterior to ensure you’re making a good first impression. Reseed or throw down some turf on lawn patches, change the lights in the lamppost, and if necessary, reset the walkway stone.
• Clean the interior beyond your standards. Even if they are impeccable, rent an industrial carpet cleaner or hire a professional cleaning service. Brighten the interior ambience with light fixture updates, as new lighting is one of the most inexpensive and noticeable improvements you can make prior to listing.
• Fix leaky faucets and make sure the water pressure is strong in both the kitchen and bathrooms.
• If necessary, a great way to improve the appearance of your home is to paint. Use only neutral colors that can easily lend themselves to different décor and styles of furniture.

Don’t reject low offers; negotiate

• Don’t dismiss lower-than-expected offers. Instead, consider buyer incentives that help you meet your asking price. Offer to pay the buyer’s closing costs, moving costs or loan origination fee. These can help the buyer with upfront costs. As well, you may consider offering a limited home warranty that covers HVAC systems and some appliances for a definitive period of time.
• Be careful of purchase offers that are contingent on the buyer selling their home first. Their home may be in a softer market than yours and you could be in for a long wait. Be sure that the purchase agreement includes a contingency-release clause. This way you’ll be able to sell if another buyer comes along.
• Work with your Better Homes and Gardens® Real Estate agent to find creative solutions to make a deal come together. The purchase price is just part of the deal. Anything that makes your property stand apart from the competition will give it an edge in a buyer’s market.

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Moving with Young Children

 Are you excited and happy about moving? Or are you dreading the sorting, packing and other chores? If you look at moving as an exciting adventure full of fun, new possibilities, then you’re halfway to getting your children on board for the ride. Your children will absorb your enthusiasm like little sponges. There will be some worries, of course, but you can defeat those with a little preparation and understanding. Most children don’t like the changes associated with moving. The younger the child, the less able they are to "see into the future" as you do. They tend to focus on losing the security they’re used to, and they worry about missing friends and family. You can make childish anger and doubt grow into a sense of wonder and adventure. You can do that by acknowledging and empathizing with the loss they feel and showing them how to balance their feelings with what they have to gain.

 1. Communicate with your child patiently and frequently. Let your children know, step by step, what is happening and what is likely to happen next. Tell them what the move means to the family -- how important it is that Mommy got a big promotion or that Daddy is opening a new office for his company.

 2. List all the advantages there are for the child in the move. For example, will the family be closer to Grandma, the ocean, or another favorite person, place, or activity? Will they be able to see old friends and family frequently? Or at least at holiday time?

 3. Show the child as much as you can about the new home. When you show your child their room, bath, and play area, make a game of it by asking where certain favorite toys or furniture should go. Have fun by showing your child the new house plans, or draw them yourself and let your child cut out furniture and toys to place in the rooms. Show your child a typical day in the home as you go from room to room.

 4. Introduce your child to the new community online. Draw a map, and show how close Mommy and Daddy work, where schools are, where Aunt Bea lives, and other points of interest to help them orient themselves in their new surroundings.

 5. Be ready for those "What about me?" questions. If your child is in scouts, little league, or other organizations, contact those associations for referrals in your new neighborhood or city. Knowing they won't have to give up favorite hobbies or sports goes a long way toward helping children adjust.

 6. Let your child participate. Make a fun activity out of researching services you’ll need online, like finding a new veterinarian for your dog. Older children can find blogs online about their new school.

 7. Keep your child occupied by letting them plan and pack a box or two of their special things. Consider their input on new decor and the layout of their new rooms. Encourage them to take the time to exchange good-byes with friends and loved ones and get addresses, e-mail addresses, and phone numbers to stay in touch.

8. Try to stick to normal routines as much as possible. Let your children know that, although they will soon live in a new house, the rules of the household will still be the same. Bedtime is still at 9 p.m., and homework must still be completed before TV time is allowed. And although Mom and Dad are a little busier and distracted with the move, they love their children very much and are giving the entire household a new opportunity to grow.

 9. On moving day, have a bag packed of personal belongings for each member of the family, being careful to include medications, clothes, and personal items. Let your children choose what amusements and favorite "loveys" they wish to take along, and reassure them they will see their other favorite toys when they arrive in their new home. Your preparedness will go a long way in reassuring your children that their needs are being considered, even while big changes are happening around them

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Great Location! 4 Bed 3 Bath South El Monte Home

 Esteban Torres is a custom home conveniently located in the friendly City of South El Monte. E.T features custom landscaping in the front yard, with mature Palm Trees and much more beautiful landscaping. As you walk in you will be welcomed with the open feel of high ceilings and natural light. The home also features travertine flooring throughout and in the restrooms, granite counter tops in kitchen and bathrooms, crown and base molding throughout as well. Esteban Torres is truly built to entertain, it also offers a back yard complete with a pool,spa Privacy, and much more.. All schools are walking distance, parks, city hall, community centers, shopping and the 60, 605, 10 Freeway are all minutes away.
Full Details
http://www.endeavorre.com/listing/mlsid/301/propertyid/IV13018753/syndicated/1/cgltguid/98988522-DC15-4700-8399-ECF6945C92C5/?ts=crg

Listing Courtesy of WILLIE SOTO DRE:01375847, ENDEAVOR REAL ESTATE

Title Process. What is Title Insurance? What should be looked for in a Preliminary Report

The home buying process is, by its very nature, a complex transaction. Title Insurance is an important part of the real estate transaction since it insures you that all liens placed against the prior owners of the property, or documents that will restrict your use of the property, have been fully disclosed to you. A Preliminary Title Report provides you with an opportunity to review any impediments that would prevent clear title from passing to you. When reviewing a Preliminary Title Report, it is important to check the extent of the ownership rights or interest you will be acquiring. The most common form of ownership interest is 'fee simple' or 'fee,' which is  also the highest form of interest an owner can have in real estate. Liens, restrictions, and interests of others will be listed numerically as exceptions in the report. You may also have to consider interests of third parties, such as easements granted by prior owners, which limit use of the property. Some buyers attempt to clear these unwanted items prior to purchase. A list of standard exceptions and exclusions not covered by the title insurance policy is also attached. This section includes items the buyer may want to investigate further, such as laws governing building and zoning. What Is Title Insurance? Title Insurance insures owners that they are acquiring marketable title to the property. Unlike casualty insurance policies which insure against future events, title insurance is designed to eliminate risk or loss caused by title defects from past events. Title insurance provides coverage only for title problems that were in existence at the time the policy was issued. A title insurance policy is a contract of indemnity that guarantees that the title is as reported. If it isn't, and the owner is damaged at a later date, the title policy covers the insured for loss up to the face amount of the policy. What Is A Title Search? Issuing a title insurance policy is an extensive and exacting process. Title insurance companies work to eliminate risks by performing a painstaking search of the public records, or the title company's own "plant", where public records, laws, and court decisions pertaining to the property and the parties to the escrow are maintained. This is done to determine the current recorded ownership, recorded liens or encumbrances, and other matters of record which could affect the title to the property. Once a title search is complete, the title company issues a Preliminary Title Report detailing the current status of title. What Is A Preliminary Title Report? A Preliminary Title Report contains vital information which may affect the willingness and the ability of the parties to close an escrow. Information includes ownership of the subject property, the manner in which the current owners hold title, matters of record which specifically affect the subject property or the owners of the property, as well as a legal description of the property and an informational plat map. The Preliminary Title Report indicates the type of title insurance to be offered by the title company, and the exclusions and exceptions from coverage based on the type of title insurance policy the company intends to issue. Exclusions and exceptions can include items such as: recorded deeds of trust, easements, agreements, and covenants conditions and restrictions, commonly referred to as CC&Rs. What Should Be Looked For In A Preliminary Title Report? Pay particular attention  to the following items: Verifying the ownership vesting by insuring that the names on the report are the same as the names on the purchase contract. Sometimes the name of an unexpected owner will appear (i.e. a previous spouse or relative who died), and corrective documents may be required.  Verifying that the property address, the plat map, and legal description all match. An owner could own two properties adjacent to, or across the street from, each other, causing confusion in identifying the correct property.  Reading the informational notes for pertinent items about the property, such as: transfer taxes, monument fees, homeowners' association fees, etc.  Carefully reviewing the exceptions. Common exceptions include: current taxes, bonds, deeds of trust, Mello-Roos Assessment District items, CC&Rs, and easements. Be sure the CC&Rs or existing easements don't interfere with the buyer's future plans. For example, an easement across the backyard could have a profound effect on the buyer's ability to add a swimming pool at a later date.  Always looking for surprises. If you can't locate an easement, or an unexpected deed of trust shows up, or you see an item you weren't aware of before, immediately call the escrow officer or title company to discuss the matter. The title company should be a problem solver, and top-notch escrow officers and title companies go out of their way to resolve quickly the majority of "red flag" items. However, the responsibility for early detection and resolution of problems falls on the entire escrow team, including the agents, the escrow and title company, and sometimes the buyers and sellers as well.  What Is Covered? Not all risks can be eliminated by a title search, since certain "hidden defects", such as forgeries, identity of persons, incapacity, incompetency, and failure to comply with the law, cannot be disclosed by an examination of the public records. While the Preliminary Title Report is an offer to insure under certain circumstances, the Title Insurance Policy is a contract, providing coverage against such "hidden defects." In addition to indemnifying the insured against losses which result from a covered claim, the policy also provides for legal fees and defense for future claims against the property. Extended owners' and lenders' policies of title insurance provide broader coverage and are available through the American Land Title Association (ALTA). Coverage is extended to certain matters that are "off-record", but which are generally discoverable by an inspection of the property or by questioning the parties in possession. These include: Unrecorded liens and encumbrances  Unrecorded easements  Unrecorded rights of parties in possession  Encroachments, discrepancies, or conflicts in the boundary lines  ALTA policies are available for owners and lenders, and a "plain language" ALTA Residential Policy is also available for residential property containing one to four units. Agents, buyers, and sellers should not assume that all title insurance policies and title companies are the same. They aren't, and it is important to ask questions of your title company to determine the type and cost of coverage available.

Buying a Home Like It's 1999

Buying a home has become a confusing process over the last couple years, but lately the biggest purchase decision of your life has become simpler.  Due to sharp home price drops, home affordability is in a great place.

The drop in home values caused by the mortgage crisis has resulted in at  least one positive outcome: Prices have fallen so far and so fast that home affordability is back to pre-housing boom levels, according to a new report.

After reaching a peak in late 2005, the ratio of home prices to annual income fell to its lowest levels in 35 years last September, according to data compiled by by Moody's Analytics, which tracked median home prices and annual incomes in 74 markets.

By that measure, housing affordability at the end of September had returned to or surpassed the average reached between 1989-2003 in 47 of those markets, The Wall Street Journal reported, noting that most economists believe the housing boom took off in 2003.

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From Aol

National Unemployment Rate Falls to 9%

The nation's unemployment rate dropped to 9.0 percent in January, although employers added just 36,000 jobs to their payrolls, according to figures just released by the Department of Labor

 

January's rate is down from 9.4 percent in December, and is the lowest jobless reading reported by the federal government in two years. 

Read more

Foreclosure freeze coming for the holidays

NEW YORK (CNNMoney.com) -- Several of the big mortgage players are playing Santa Claus again this year, saying they will not evict borrowers in default during the two weeks surrounding Christmas.

Freddie Mac (FMCC) and Fannie Mae (FNMA), the two government-controlled mortgage giants, are freezing all foreclosure evictions on mortgage loans they own or back from Dec. 20 through Jan.3.

Evictions mark the end of the foreclosure process. After the home is sold at foreclosure auction -- or banks take possession of the home -- owners must leave the property or face eviction notices.

"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays," said Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac. Rest of the Article

California Foreclosure Report

Preforeclosure inventories dropped 11.8 percent in October from the prior month, largely thanks to a 16.8 percent drop in Notice of Default filings. Foreclosure suspensions led to a 29.9 percent decline in foreclosure sales that went Back to Bank (REO), and a 26.4 percent decline in those Sold to 3rd Parties. Despite the significant decline in new Bank Owned (REO) properties, Bank Owned (REO) inventories actually rose, as REO resales continued to slow. 


View all California stats by state, county, city or ZIP 

September 2010 Foreclosure Report for California

The number of foreclosures Sold to 3rd parties, typically investors, declined 15.6 percent in September. Most foreclosure investors flip the properties they purchase after taking care of title, occupancy and repairs. This process is taking 44.5 percent longer than it did a year ago, up from 95 days to 137. The number of foreclosure sales that went back to the bank was up 4.9 percent, while the total inventory of Bank Owned (REO) properties increased by 5.3 percent as REO resales slowed. Notice of Trustee Sale filinges declined 17.2 percent while Notice of Default filings were essentially flat with a decrease of 1.9 percent.  Read more

Foreclosure Freeze: Better for You or the Banks?

While defaulters living for free may be helping to stimulate the economy with money they can spend on things other than their mortgage, most of the rest of us will feel the pain as the foreclosure freeze delays the healing process for the housing market. Yet some think a delay in foreclosures might not be bad for the banks.

In fact columnist, Peter G. Miller, thinks this delay in foreclosures we've seen so far over the past year or so could have "prevented the financial system appearing significantly worse." He thinks the "national fudging process" of the banks may be able to go on a bit longer as the banks wait "until property values increase for real." Right now the banks are carrying many of these foreclosed properties at a higher value than they are worth today. Once they sell them off, they'll have to report the true value of the assets they are holding.   Read More

Permanent HAMP Mod Conversions Down 27%

The administration released new data on the Home Affordable Modification Program (HAMP) Wednesday. Just over 33,000 homeowners received a permanent HAMP mod in August.

That’s 27 percent below the number of permanent conversions the month before. So far, about 468,000 permanent modifications have been granted to distressed homeowners under the federal program....

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New Foreclosure Filings Up in California for Fourth Straight Month

Source: DSnews.com By: Carrie Bay

California’s notice of default filings, the first step in the state’s foreclosure process, rose for the fourth successive month in August, jumping another 16.6 percent, according to the locally based tracking firm ForeclosureRadar.

The company’s latest data on the Golden State also show that fewer distressed homeowners are finding foreclosure relief. Foreclosure cancellations dropped 11.2 percent in August, while more homes were lost. ForeclosureRadar says there were a total of 17,841 foreclosure sales in California last month, up 15.6 percent compared to July.
The state’s REO inventory increased by about 4,000 properties during the one-month timeframe and now stands at an estimated 108,000 repossessed homes that have not yet been resold, according to ForeclosureRadar’s report.

New foreclosure filings in California are down 16.03 percent from last year, but the pipeline is becoming increasingly clogged. ForeclosureRadar reports that there are currently 155,000 homes in the state in a pre-foreclosure status, another 123,000 properties scheduled for trustee sales, and the time-to-foreclose has lengthened to an average of 287 days.

Starting this month, ForeclosureRadar has also expanded its coverage to include data on Arizona, Nevada, Oregon, and Washington, with drill-down capabilities to the state,country, city, and ZIP code levels on its Web site. The company has been tracking foreclosure activity in these additional states for over a year now to capture historical data and provide details on market trends as part of their inaugural reports.

In Arizona, ForeclosureRadar found that notices of trustee sale dropped 12.2 percent in August after climbing 28.8 percent the month prior. Banks took back more properties at auction than they resold in August leading to a continued climb in the state’s REO, up 4.79 percent from the previous month and a 60.48 percent increase year-over-year.

Among the highlights from the Nevada report, is that after seeing an increase in the average opening bid at auction in July, opening bids in August dropped by 4.6 percent. Foreclosure sales to third parties increased by 26.6 percent, and lenders took a record 324 days from the filing of a default notice to completion of the foreclosures sold at auction last month.

Oregon’s number of properties scheduled for foreclosure sale rose by 17.1 percent in August, as the number of new notices of trustee sale significantly outpaced the number of foreclosures that were cancelled or sold. Overall, notice of trustee sale filings in the state rose by 9.3 percent during the month, and notices of default were up 10.7 percent.

In Washington, foreclosure activity decreased across the board, with notices of trustee sale down 15.8 percent, completed foreclosure sales down 10.8 percent, and foreclosure cancellations down 21.8 percent. Despite these declines, the number of properties scheduled for foreclosure sale rose by 2.7 percent and bank-owned inventories increased 9.4 percent.

“Real estate markets are local, not national, and like other real estate trends, foreclosure trends vary a great deal by location,” said Sean O’Toole, CEO and founder of ForeclosureRadar. “We are excited to be able to bring timely, accurate, in-depth and location specific foreclosure data to the Arizona, California, Nevada, Oregon, and Washington markets.”

Fannie Mae to Sell Foreclosed Homes With Subprime Lending Terms

Source: Lita Epstein Housing Watch

Thought those great low down-payment deals were gone? Think again. If you're willing to buy a home foreclosed by Fannie Mae through the new HomePath program, you may be able to purchase one with as little as 3 percent down. Even better, that 3 percent can be a gift from a family member or other third party, or a loan from a nonprofit, or a state or local government.

Sound a lot like those subprime loans that started this housing mess?

The terms are similar, but the big difference now is that to qualify for those favorable terms in the HomePath program, you must choose one of Fannie Mae's foreclosed homes, and you must buy it "as is."

Here are the terms you can expect:

• Low down-payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only).
• You may qualify even if your credit is less than perfect, as low as 660, when most lenders want a minimum of 700.
• You can qualify as an investor or owner-occupant.
• Down payment must be at least 3 percent for an owner-occupant, but it must be funded by your own savings or by a gift, a grant or a loan from an employer, a nonprofit organization, or a state or local government. Investors must come up with 10 percent down.
• No appraisal is required.
• No mortgage insurance is required, but the terms of the loan may not be as favorable. You need to look at the options with your lender.

To get these very favorable terms, you'll need to buy the home "as is." But if you find the perfect home and it needs some renovation, you'll be able to quality for the HomePath Renovation Mortgage. This type of mortgage will fund both the purchase of the home and some light renovation.

If you are applying for renovation money, you may need to get an appraisal.

Also, to make it easier for first-time buyers or buyers without much cash to get in on these deals, "seller contributions" will be allowed in amounts as high as 6 percent of the purchase price, which means that your need for down-payment money could be greatly reduced. Maximum loan amounts could be as large as $729,750 in the highest-cost areas, $625,500 in others, and $417,000 in the rest of the U.S.

You can find listings of available homes at the HomePath website. Once you find a home you'd like to see, you'll find a link to an agent who can show you the home. If you want to determine what you can afford before getting started on a home search, contact a HUD counselor who can help you set up a budget and figure out what you can afford.

You may also want to talk with a potential lender and get pre-approved for financing. This may allow you to jump to the top of the pile -- if more than one person puts in a bid for the house -- because the seller knows you can qualify for the loan. It also gives you an idea of what price range you should seek out when looking at potential home purchases. To get a pre-approval letter, a lender will need to gather information about your job, assets, income and debts. Then he or she will determine how much financing you're qualified to receive.

If you want to take advantage of some great foreclosure deals out there, this may be the perfect way to get started.

Lita Epstein has written more than 25 books including "The 250 Questions Everyone Should Ask About Buying Foreclosures."

Homebuyer Tax Credit: Another on the Way?

By Stefanos Chen Aug 30th 2010 @ 4:35PM
Filed Under: News, Economy


Could this month's dreadful home sales numbers prompt the feds to offer another homebuyer tax credit? Mum's the word on Capitol Hill, but HUD Secretary Shaun Donovan would not rule out the option during an interview Sunday on CNN. Existing-home sales sank 27.2 percent in July, and sales of new homes dropped to their lowest point since 1963. The dreary sales figures arrive on the heels of the end of the up-to-$8,000 first-time homebuyer tax credit, which expired at the end of April. July was to be the first month in which home sales would reflect consumer confidence after the deadline. While most analysts anticipated a drop in sales after the tax credit, Donovan admitted that the decline was worse than expected. "It's too early to say whether the tax credit will be revived," he said, but he added that the government would do "everything [it] can" to stabilize the housing market. What Donovan would confirm, however, is the creation of two new programs: an FHA refinancing effort to help underwater homeowners and an "emergency home loan program" for unemployed borrowers facing foreclosure.



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Fannie Mae Places Ban on 'Appraisal Cutting'

Source: DSNews.com By: Carrie Bay

Fannie Mae is implementing a new policy this week regarding home appraisals. Effective Wednesday, September 1, lenders that sell loans to the GSE will be prohibited from making changes to appraisers’ valuations – a practice that has become more widespread and is commonly referred to as “appraisal cutting.”
Fannie Mae says through recent post-purchase reviews of loan files, cases were identified where the lender had reduced the opinion of market value in the appraisal report based upon underwriter judgment, automated valuation models, or other methodology. The practice has prompted the GSE to place a ban on so-called appraisal cutting.

In an updated policy guide, Fannie says the lender is responsible for ensuring that appraisal reports are complete and that any changes to the report are made by the appraiser who originally completed the assessment.

If the lender has concerns with any aspect of the appraisal that result in questions about the reliability of the opinion of market value, Fannie Mae is directing the lender to first attempt to resolve its concerns with the appraiser directly by identifying the deficiencies found and providing justification for requesting correction of the deficiencies the lender believes make the report unreliable.

If the lender is unable to resolve its concerns with the appraiser, the lender must obtain a second appraisal prior to making a final underwriting decision on the loan.
“Any request for a change in the opinion of market value must be based on material and substantive issues and must not be made solely on the basis that the opinion of market value as indicated in the appraisal report does not support the proposed loan amount,” according to Fannie’s new policy.

The GSE adds, “Lenders must pay particular attention and institute extra due diligence for those loans in which the appraised value is believed to be excessive or where the value of the property has experienced significant appreciation in a short time period since the prior sale.”

Fannie also states that lenders must only use appraisers who “have the requisite knowledge to perform a professional quality appraisal for the specific geographical location and particular property types.”

The Uniform Standards of Professional Appraisal Practice (USPAP) allows an appraiser who does not have such knowledge and experience to accept an appraisal assignment by providing procedures with which the appraiser can complete the assignment, but Fannie Mae says it does not allow the USPAP flexibility.

In a “new policy guide”: issued in late June, the GSE also outlined a number of other requirements surrounding appraisals, including situations in which an appraiser should choose to use either a foreclosure sale or a short sale as a comparable property, and excessive sales concessions which can artificially inflate the sales price of a property.



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30-Year Fixed-Rate Mortgages Hit New Low

Source: Housingwatch
By Stefanos Chen

Just when it seems like the bottom's dropped out, the average rate of 30-year fixed-rate mortgages has slipped again. According to Freddie Mac's Primary Mortgage Market Survey, 30-year fixed rate mortgages averaged a rate of 4.42 percent, down from 4.44 percent last week. It marks the ninth straight week in which the rate has met or set a new record low, said Freddie Mac's Deputy Chief Economist, Amy Crews Cutts. At this point last year, the average was 5.12 percent. Fifteen-year fixed-rate mortgages also hit a milestone, bottoming out at a record-low 3.90 percent, down from last week when it averaged 3.92 percent. Just one year ago, the average rate was 4.56 percent. Cutts cites the end of the homebuyer tax-credit as a continued impediment to home sales. Will we see a drop in 30-year fixed-rate mortgages for a 10th week in a row? It may be more surprising if we don't.





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July 2010 California Foreclosure Report

Read the latest from the California foreclosure report: Download Here

Highlights from this report:

• Notices of Trustee Sale fell 18.91% back down to expected levels after a 22% spike last month
• Cancellations drop 13.75%, a reversal of last months trend, but remain up 75.10% year over year
• Pre-Foreclosure inventory was down 20.18% from June, indicating that lenders may be noticing sales more quickly
• Discounting on the courthouse steps continues to climb since the beginning of the year, up approximately 5% since January to 21.6%
• Time-to-Foreclosure was down month over month by 3.42% to 226 days
• Time-to-Resell fell slightly for 3rd Party investors to 164 days, a 3.53% decline month over month.

Source: http://www.foreclosuretruth.com/blog/sean/author/mark/

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I want to stay in my home

Stay in Your HomeIf you are facing financial difficulties—whether they are short or long term—start exploring your options today.


Even if you haven’t yet missed a mortgage payment, but are worried you might fall behind soon, now’s the time to take action. You may be eligible to refinance or modify your mortgage loan, lowering your payment and making it more affordable. Or, if you’ve missed payments and find yourself buried under late fees and past-due amounts, you may qualify for a temporary (or permanent) solution to help you get your finances back on track and avoid foreclosure.


Here’s an overview of possible options to help you stay in your home and avoid foreclosure:

• Refinance
• Repayment Plan
• Forbearance
• Modification
• Deed-for-lease

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