FHA Mortgages Make Homes Affordable For First Time Homebuyers

Call Tami Winbury Keller Williams Realty 805-798-3412 DRE#01878369 to assist First time Home Buyers in Ojai and Ventura real estate.

Have you been renting your home or apartment? Are you looking to start building equity in a home of your own? Home affordability has increased significantly over the past several years, and mortgage rates are pretty close to historical lows. Even if you don’t have a lot of money for a down payment, but you have a good credit history, you may be able to qualify for an FHA mortgage.
There are a lot of benefits to getting a mortgage insured by the FHA. Probably the most attractive feature to many people is that the FHA only requires a minimum down payment of 3.5% of the purchase price of the home. Most other sources of financing will require a down payment of 20% or more. Another benefit of an FHA mortgage is that the credit score requirements are somewhat more lenient than they are from traditional lenders.
As private capital dried up as a result of the housing crisis, the number of loans originated through the FHA increased significantly. As this occurred, the number of FHA loans that went into default increased as well. This has caused the FHA’s capital reserves to fall below the minimum levels mandated by Congress. As a result, there are some lawmakers who would like to raise FHA minimum down payments to 5 percent or more. While this move does not appear to be imminent, it is worth being aware of.
Another potential change to the FHA lending program that borrowers should be aware of is that the maximum FHA loan limit is going to fall from $729,750 to $625,500 at the end of September (unless conforming limits are extended, which is possible). In some high cost markets (such as parts of New York City, Miami, Boston, California, Boulder, and Washington D.C., among others) , FHA loan limits were temporarily increased in 2008. Now these higher loan limits are set to expire. If you live in one of these markets, and were thinking about using the FHA for financing, you probably want to make a purchase or refinance prior to October 1.

Today’s rate on a 30 year fixed FHA mortgage is 4.250 percent with an APR of 5.563 percent*. To find out if you qualify for an FHA mortgage today, call one of our licensed mortgage professionals at 877-868-2503 at to begin our free pre-approval process.
Mortgage rates are always changing.

Tami Winbury Keller Williams Realty
repost

Realtors Expect 1% Rise in Calif. Home Sales

Home sales in California, the most populous U.S. state, are likely to rise 1 percent in 2012 after being “essentially flat” this year, the California Association of Realtors forecast today. For information on your local market in Ojai and Ventura County real estate contact Tami Winbury Keller Williams Realty 805-798-3412 DRE#01878369

Sales of existing homes are expected to rise to 496,200 units from a projected 491,100 in 2011 and 491,500 last year, the Los Angeles-based group said in a statement. Median prices probably will rise 1.7 percent to $296,000 from $291,000 this year, according to the Realtors.
“The fundamentals of the housing market -- such as low mortgage rates, high housing affordability and favorable home prices -- are expected to continue,” Beth L. Peerce, president of the California association, said in the statement. “But at this point, a strong housing recovery will depend on consumer confidence, job creation and the availability and cost of home loans.”
California home sales, which account for about a 10th of the U.S. total, have fallen from 625,000 in 2005, while median prices are down from a peak of $560,300 in 2007, according to the group. The state ranks second nationally, after Nevada, in the pace of foreclosure filings. One of every 226 homes received a notice of default or was subject to a foreclosure sale in August, RealtyTrac Inc. reported Sept. 15.
It will take as long as five years for the state’s inventory of foreclosed properties to be absorbed, Leslie Appleton-Young, chief economist for the California Association of Realtors, said in a conference call today.

‘Closer to Five’

“It depends on the area,” Appleton-Young said. It will be“closer to five in the inland areas, where I don’t think we’ve seen a lot of the supply that’s going to come through come through,” she said.
California’s unemployment rate was 12.1 percent in August, also second to Nevada and above a U.S. rate of 9.1 percent, the state Employment Development Department reported Sept. 16.
The California Realtors’ forecast for this year was lowered from 505,000 sales projected in June and 502,000 in October.
For a free list of bank owned homes contact Tami Winbury 805-798-3412 DRE# 01878369 www.ShortsSale.org
Reporter on this story: John Gittelsohn

Google+

Google+ has been open to the public for about 11 weeks now… Of course, in that short time, there have been many a blog post on it with the topics ranging from how it may or may not be the death of Facebook or Twitter to the rants and raves regarding the likeliness of its survival. One thing is for sure – no one can predict what will happen with this new networking platform and honestly, there is no lost sleep over here. I satisfy my passion for social networking and connecting over on the aforementioned sites… Well, except for one thing – my beloved Hangout (aka: cloud video conferencing). Contact Tami Winbury Keller Williams Realty 805-798-3412 DRE# 01878369 for the best real estate Online resources and marketing. It was “love at first experience”… that moment I attended my first Hangout. Sure, you can video chat inside Facebook or Skype, but the technology on those two platforms can’t touch the Hangout. The G-geeks behind the tech truly leverage the power of Google’s infrastructure - not like the peer-to-peer (P2P) tech embraced by the others above. Not to mention, one of my favorite Google+ Hangout features, the automatic switch of focus to the person talking; promoting that person to the main screen, while the other chatters are featured in small tiles underneath the big screen. Yes, I’ve heard the loud whisper of complaints about the browser integration Hangouts currently require you to download a plug-in… but no worries, Google is already working on a solution for this. Alright, that’s enough geek-speak… for now, all you need to know is that their current solution dramatically reduces the latency experienced in multi-user video chat – a definite PLUS in my book. (pun intended) Oh, and it is FREE. People often ask me what happens in all of the Hangouts I participate in and host… and my answer is simply – CONNECT. Your sphere is likely growing “geographically” like mine is, right? If I only stop and catalogue the Inman events attended over the last 18 months… all of them have inspired and solidified many connections with people from all over the globe! So, how can anyone truly keep in touch with these new connections IRL – especially when there are hundreds or thousands of miles between them? Well, my solution has been IVL (In Virtual Life) using Hangouts. For the record, the “Hangout” was created to be serendipitous and “public” in nature. If you can SEE people hanging out that means you are welcome to join in… period. Article continues below HOWEVER, most of my interactions are in focused, invitation-specific Hangouts. I just create a circle of friends on Google + and “schedule” Hangouts with them using Google Calendar. For example, my #powerwomen group meets twice a month to share business development ideas, inspire progress/growth, and provide a valuable support network. Other fave Hangouts have been about harnessing the power of apps like Evernote, brainstorming ways to integrate an iPad into Real Estate client interactions, and even watching a few YouTube training videos and then discussing them – right inside Hangout. Still not convinced? Here are some more examples of how I use it: My BFF shoots me a text that she needs to chat… and my immediate reply is text or Hangout? A coaching client on the East Coast has a question about her biz strategy – the two of us pop on Hangout and hash it out. I also actually offered the newest #swaggagurlz team member her job via Hangout!! This communication platform has replaced nearly 80% of the “phone/conference calls” on my calendar. If the other person is not on Google+, I send them an invite, walk them through the set up, and voilà- we are off and Hanging Out! Every single connection has gone on to implement the Hangout in their lives. The bottom line is that a Hangout is more focused and productive than a call. Simply put, you HAVE to pay attention – they can SEE you. Need I say more? Okay, how about they are usually more FUN and engaging too? If you haven’t put your toe in the G+ water yet – do yourself a favor and try it, if only to adventure in “Hangout Land”. I am happy to share a Google Plus invite if you need one… and believe me, once you are there, Google’s “How To Host a Hangout” instructions will be all you need to get going! If you are using Hangouts in a creative way or have a unique idea, please share that in the comments below. Also, Google announced another round of exciting upgrades coming to Hangouts, including: screensharing, sketchpad, and Google docs integrations… Let’s imagine the possibilities together! Happy Hanging Out Reposted by Tami Winbury Keller Williams Realty 805-798-3412

How Fannie Mae and Freddie Mac Save You Money

Call Tami Winbury Keller Williams Realty 805-798-3412

Homeowners who use Fannie Mae and Freddie Mac mortgages save thousands of dollars in interest payments each year.

Loans owned or guaranteed by Fannie Mae and Freddie Mac save homeowners thousands in interest payments. Image: Image Source/Getty Images

If all you read is the headlines, you might think mortgage market giants Fannie Mae and Freddie Mac have cost the taxpayers billions. However, a deeper look into these two government-sponsored enterprises (GSEs) reveals a decades-long history of making mortgages more affordable, benefiting not just individual homeowners, but whole communities.
Fannie Mae and Freddie Mac are federally chartered organizations designed to bring global capital to local communities by purchasing and guaranteeing loans made by mortgage lenders.

As a homeowner, there are several ways you benefit from Fannie Mae and Freddie Mac. If your loan is owned or guaranteed by one of them, you pay a lower interest rate. And, when the time comes to sell your home, the pool of buyers capable of getting a mortgage is much wider thanks to Fannie Mae and Freddie Mac. To see how a loan guaranteed by one of the GSEs helps you save money, download our free PDF worksheet.

Homeowners who qualify for a Fannie Mae or Freddie Mac mortgage, called a conventional loan, typically get interest rates that are ¼% to ½% lower than non-Fannie Mae, non-Freddie Mac loans. At times when other mortgage funding dries up, the rate difference between GSE and non-GSE loans has jumped to between 1% and 2%.

On average, homeowners who have GSE loans save $17,000 over the life of a 30-year loan. Since 30 million Americans have a GSE-backed loan, that adds up to more than $500 billion in savings for U.S. homeowners.

GSEs stabilize the market

Despite the financial advantage the GSEs create, not everyone supports their mission. Some critics worry that Fannie Mae and Freddie Mac are taking on too much financial risk by guaranteeing mortgages in the current economic climate. Others believe the GSEs should be purely private entities, functioning without an implied or explicit government guarantee at all.

Falling home prices and rising unemployment have challenged the GSEs. When the subprime mortgage crisis hit and expanded into the prime market, there was a sharp decline in home prices and a sharp increase in mortgage delinquencies and foreclosures. The crisis put extreme financial pressure on both Fannie Mae and Freddie Mac.

By mid-2010, the two companies had required $145 billion of taxpayer support. However, without those funds, the GSEs would have gone under, putting an end to the steady flow of funds into the U.S. mortgage market.

“Absent the engagement of the government through the GSEs and FHA, what was a bad situation would have been catastrophic for the housing market, and potentially catastrophic for the broader economy,” says Nicolas P. Retsinas, director of Harvard University’s Joint Center for Housing Studies and Freddie Mac board member.

Today, the GSEs remain one of the few reliable sources of home mortgage funding, along with mortgages insured by the Federal Housing Administration. In 2010, 80% of U.S. home loans were bought, or guaranteed, by Freddie Mac and Fannie Mae.

Loan limits

Congress sets a maximum Fannie Mae and Freddie Mac maximum loan limit. Homeowners who need to sell find that there are more borrowers for homes priced at or below the GSE maximum loan amount, which is $417,000, or up to as much as $729,750 for some high-cost areas.

It can be hard for buyers to find lenders willing to lend more than the GSE loan limits because lenders have to hold such loans in their bank portfolio in the current financial situation. Until the recent financial crisis, lenders were able to sell mortgages above the GSE limits to companies that turned them into private mortgage-backed securities.

Until the summer of 2008, the nationwide loan limit was $417,000, far too low to be of use to many homeowners and prospective homebuyers in California and other high cost areas, says U.S. Representative Brad Sherman (D-Calif.), who has proposed legislation raising the loan limits permanently to $729,750.

“Buyers in high cost areas, such as Southern California, are at an extreme disadvantage simply because of where they choose to work and live,” he says. “For the overall economy to recover, every part of the housing market needs to improve, including high cost areas.”

Higher loan limits can also help homesellers. If the limits correspond to market values, buyers can use less-expensive GSE loans, so the number of buyers who can afford your home increases. With more potential buyers, competition for individual properties increases. With more competition, the value of the property can increase.

In the final analysis, the benefits of the GSEs outweigh the cost. Their long track record of making mortgages available in all markets benefits homeowners, communities, and the nation as a whole.
Jeannette Bernay

Tami Winbury Keller Williams Realty 805-798-3412 DRE#01878369 http://www.ShortsSale.org

Should You Ask Seller to Carry-back Mortgages

How to Seller Carry-back Mortgages

Selling a seller carry-back can help to generate immediate cash. Call Tami Winbury Keller Williams Realty 805-798-3412 www.shortssale.org

Sometimes sellers agree to make a loan to help a home buyer buy a home. Sellers who agree to finance all or part of the purchase price receive documents that evidence the terms and conditions of the loan. The seller carry-back instruments are typically recorded in the public records. Seller carry-backs can be in the form of a mortgage, trust deed, land contract or even a lease purchase. Most carry-backs are secured by a promissory note.

Reasons Sellers Carry-Back Mortgages

When interest rates are high or credit guidelines are tightened, buyers ask sellers to act in place of the bank and carry the financing for them. If the home is free and clear without any existing loans, the seller might carry all the financing or the buyer might get a conventional fixed-rate loan for part of the purchase price and ask the seller to finance the balance.
If there is an existing loan secured to the home, sellers might let buyers take over the existing loan payments, although the loan will remain in the seller's name. The difference between the sales price, minus the down payment and the existing loan is the equity the seller would carry as a loan.
Sellers agree to carry part or all of the financing for a variety of reasons, some of which are:

• It's a soft or down real estate market. Owner-carried financing will attract a greater pool of buyers.
• The buyers cannot qualify for a conventional loan.
• The seller is facing capital gains on the sale of the property and can defer that portion which is financed.
• The financing gives the seller a better rate of return than a money market account.
• Sellers sometimes want a monthly income.
• The property is non conforming and no lender will loan on it.
• Often sellers can receive a higher sales price in exchange for offering owner financing.

Drawbacks of Seller Carry-Back Mortgages

• The buyer might default on the payments, causing the seller to initiate foreclosure proceedings.
• After foreclosure, making up back payments to the existing lender, if there is an existing loan, paying closings costs and real estate commissions, the seller might not be left with any equity.
• Sellers who carry back mortgages have tied up cash by securing it to the property.

 Converting the Seller Carry-Back Into Cash
There is a large pool of private investors in the marketplace who regularly buy seller carry-back instruments. However, they do not pay face value. Investors look at the yield they will receive over the term of the investment, and this yield can be increased if the investor pays less than the outstanding balance due.
The discounts vary across the board, but sellers can expect to lose 10 to 30 percent of the unpaid balance, depending on the following:

• Seasoning. This means how long the seller has been receiving payments on the carry-back financing. A seller who has received timely payments over a 12-month period will receive more cash than a seller holding a brand new mortgage.
• Interest rate. The higher the interest rate, the lower the discount. A lower interest rate will attract investors who want a higher discount.
• Mortgage term. Long-term mortgages such as a 30-year mortgage are not as attractive to an investor as a short-term mortgage; therefore, long-term mortgages are typically sold at higher discounts than short-term.
• Prepayment penalties and late charges. Carry-back mortgages that contain a prepayment penalty and a late charge are also more attractive to investors, which affects the discount rate applied.
• Loan-to-Value Ratio. Lower loan-to-value ratios receive more favorable discounts. Higher ratios are considered greater risk and the discounts are steeper.

Investors also consider the type of security, its appraised value, location, amenities, condition and the credit-worthiness, if known, of the buyers.
 Selling Fees For a Carry-back Mortgage
The investor may ask the seller of a carry-back mortgage to pick up all costs associated with the sale of the note and mortgage. You might be asked to pay such fees as:

• Title Policy.
• Escrow Fee.
• Document Preparation.
• Appraisal.
• Beneficiary Statement.
• Courier / Wire Transfers.
• Recording.
• Commission, if any.

 Finding Investors to Buy Carry-Back Mortgages
There are private investors and commercial investors. Some are represented by mortgage brokers, some are not:

• Subscribe to investment newsletters.
• Search the Internet.
• Look in your local newspaper's classified ads.
• Call Tami Winbury Keller Williams Realty 805-798-3412 DRE#01878369 who deal in investment properties.
• Let your fingers do the walking in the Yellow Pages.
• Ask friends and family members.

_{Elizabeth Weintraub,} About.com Guide

Moving with Children

Moving with Children

Moving can be especially unnerving for children. Younger kids often become confused when their daily routine is disrupted, while adolescents fear the loss of friends and dread making new ones. But there are steps you can take to help alleviate their fears, and get them involved in the move.
Your Family Friendly Service Realtor call Tami Winbury Keller Williams Realty 805-798-3412 Helping you and Your Family!

Communication Is Key. First, it's important for parents to explain the moving process by providing children with as much information as possible and allowing them to participate in decision-making discussions. This will help relieve anxiety.

Talk about the positive aspects of their new home, school and neighborhood. Try to communicate the idea that the new home can be even better than the old one. Encourage questions and invite children to talk about their worries.

Manage Your Stress. Children are attuned to parental stress-levels, so try to manage your stress as much as possible. Having a plan, creating a moving checklist, staying organized and packing wisely are all ways to minimize your moving-day stress.

Rehearse Ahead of Time. For younger children, the move should be an exciting adventure. Act out moving day ahead of time by letting your children pack their things, and tell moving stories to build anticipation.

If possible, take children with you to look at potential, neighborhoods, homes and schools. This can ease the transition. If your children are really young, consider hiring a baby-sitter while you pack. Otherwise, let your kids participate in the move, so they can understand what's going on. Even so, don't be dismayed if your child exhibits regressive behavior. It's normal.

Make It Fun. For older children, a move that involves leaving friends and favorite hangouts can be extremely difficult. Help them say good-bye to friends by hosting a good-bye party. Emphasize how easy it is to keep in touch through e-mail, IMs and phone. If at all possible, time the move to coincide with the start of a new school year or term.

Get Back to the Status Quo. Once you are settled in your new home, resume familiar routines as soon as possible. Be sure family traditions – like pizza night – aren't forgotten in your new home.

It's Okay to Cry. Don't take it personally if your children blame you for the difficulty of a move. No matter the preparation, allow children some time to grieve.
Your Family Friendly Service Realtor call Tami Winbury Keller Williams Realty 805-798-3412 www.ShortsSale.org
Inman

HUD GRANTS $10M TO HELP FAMILIES DEAL WITH MORTGAGE MODIFICATION

HUD ANNOUNCES MORE THAN $10 MILLION IN COUNSELING GRANTS TO HELP FAMILIES DEAL WITH MORTGAGE MODIFICATION AND MORTGAGE SCAMS Funding 139 local housing counseling agencies & 23 intermediary agencies nationwide: Call Tami Winbury at Keller Williams Realty today for answers about Short Sales, Foreclosures and Traditional Real Estate Today! DRE#01878369 www.shortssale.org In an effort to help families keep their homes and avoid mortgage scams, HUD today (09/02/11/) announced more than $10 million in housing counseling grants. This is unspent funding from the 2010 appropriation that was re-competed and awarded to HUD-approved counseling agencies. "The funding announced today is specifically earmarked to provide counseling assistance relating to mortgage modification, avoiding potential mortgage scams, and assisting victims of scams," said HUD Secretary Shaun Donovan. "It is crucial that we support these agencies in helping struggling families do whatever is possible to avoid foreclosure without being victimized by so called mortgage 'rescue' companies." HUD is awarding $3 million to 139 local housing counseling agencies nationwide, and more than $7 million to 23 housing counseling intermediary agencies. These funds are designed to serve residents in the nation’s top 100 metropolitan areas that are experiencing the worse foreclosure problems. The funding is predominately for foreclosure prevention counseling, assistance with application to Federal and other mortgage modification and loss mitigation programs, and related outreach. It will also support outreach and counseling efforts designed to identify and assist victims of mortgage modification scams, and report those cases to the applicable authorities. HUD awards grants under the housing counseling program through a competitive process. Organizations that apply for grants must be HUD-approved and are subject to performance reviews to maintain their HUD-approved status. For a list of all grants, organized by state, visit HUD's website at: http://portal.hud.gov/hudportal/documents/huddoc?id=CnslngGrantsState110829.xlsx For summary of each grant, organized by state, visit HUD's website at: http://portal.hud.gov/hudportal/documents/huddoc?id=CnslngGrantsSum110824.pdf To find out more about HUD’s Housing Counseling Program, please visit: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hcc/hcc_home For information on all of HUD’s Grant Opportunities please visit: http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/grants/fundsavail Call Tami Winbury Keller Williams Realty today! Watch this video to discover what a HUD home is: http://www.youtube.com/watch?v=TzeKMRONlrs