Sunday, December 30, 2012

Fiscal Cliff Deal May Lead to “HARP 3” for “Non-Agency Mortgages”

Fiscal Cliff Deal May Lead to “HARP 3” for “Non-Agency Mortgages”

Good news arising out of the “fiscal cliff” negotiations.

The Treasury Department reportedly ( Wall Street Journal and Washington Post ) is pushing a new housing initiative.

Referred to as “Market Rate Modification Program” (“HARP 3”); it allows neg equity home owners with “non-agency mortgages” to refi at today’s low interest rates.

Currently millions of Alt-A, sub-prime, option arms , and jumbo loans , are not eligible for the existing government refi programs (i.e. HARP 2).

Treasury Department studies conclude these “p rivate-label mortgages ” , make up only a small percentage of total mortgages (approx.12%) but account for 62% of the delinquencies.

The Treasury Department’s reasoning is “HARP3” would make many homeowners (who have been hanging on by their fingernails) think twice about walking from their “neg equity properties).

Editor’s Note: This program combined with the negative tax consequences of the Dec.31st expiration of theMortgage Taxpayer Relief Act of 2007 , should provide MORE THAN ENOUGH motivation for home owners to keep their neg equity properties.

How the Market Rate Modification Program Would Work

1)  Min. 680 FICO scores

2)  Max. 150% LTV

3)  Owner Occupied Only

4)  Max. Loan $625,500

5)  No mortgage lates in the last 12 months

6)  Max. DTI 45%


Kind Regards, 
Sent from my iPhone
Justin Brennan
Estates Director
Harcourts Prestige Properties
7825 La Jolla, Ca 92037
C: 619-823-2120
F: 858-386-4123

Posted via email from Justin Brennan Real Estate

Wednesday, December 5, 2012

Flip Away!! - House Flipping Rule extended by FHA

 The Federal Housing Administration (FHA) announced that it will extend its "anti-flipping" waiver through 2014.  This is welcome news for real estate investors.

 

The FHA classifies "flips" as homes that have been purchased and sold within a 90 day period.

 

In 2003, the FHA implemented the "anti-flipping" rule to curb against fraudulent transactions.  In 2010, the FHA approved a temporary waiver of the rule to help restart the housing market.  In early December, the FHA extended the waiver through 2014 to provide some more certainty to the market.

 

Key Elements of the Extension:

  • All transactions must be "arms-length" with no identity of interest between the buyer and the seller;
  • If the difference between the original purchase price and the final sale price is greater than 20%, the seller must provide detailed evidence of the repairs justifying the higher resale price;
  • Inspections are required on all key components of the building structure and systems when the sale price exceeds the 20% threshold.

You can access the article by clicking here.

 

 

Justin C. Brennan

Estates Director

Harcourts Prestige Properties

7825 Fay Ave # 190

La Jolla, CA

619-823-2120

www.TheLaJollaLife.com

 

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Mirvis

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Saturday, December 1, 2012

How Should You Remodel Your Home In 2013?

How Should You Remodel Your House in 2013?

Author: Daniel Torelli

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1. Create a home office If the recession has taught us one thing, it’s that you have to be prepared for anything! Maybe your company is downsizing its office facilities and having more people work from home. Or, maybe you’re sick of living in fear of getting a pink slip and you’ve decided to start your own business? Or, maybe that part-time job just isn’t making ends meet and you need to make some extra cash. Whatever the reason, you need some home office space! We’re not just talking a nice desk and a computer shoved into the corner of your guest room, though. We’re talking a fully-functional, completely corporate space. A space where you can spend 40 hours a week (if need be) without feeling cramped. And, most importantly, a space where you can shut the door at 5:00 on Friday and not enter again until Monday morning. The best part is that creating a home office doesn’t require any permanent changes. So, if you get the job of your dreams six months from now, it won’t be difficult to change that home office into a sewing room or back into a guest room if you want!

2. Making the most of your tiny yard With more and more people ditching expensive vacations in favor of “staycations”, a nice backyard is an absolute must. You don’t have to spend a lot of money, though. All you need is some nice landscaping and maybe a few upgraded pieces of outdoor furniture. That way, you’ll have a comfy place to hang out and have a glass of wine while the kids play! Want to get the most bang for your buck in the backyard? Opt for renovations that don’t require a whole lot of maintenance – like plants that can handle any temperature Mother Nature throws at you or a fence that doesn’t have to be stained once a year. That way, what little free time you DO have won’t be spent slaving away in the backyard!

3. Focus on affordable glamour While everyone wants a beautiful kitchen, the days of professional-grade kitchens went bye-bye when home equity loans became tougher to get! You can get a great look without spending an arm and a leg, though. For example, instead of the high-end hardwood floors, why not opt for faux wood? In addition to being cheaper, they’ll also be a whole lot more forgiving when you spill something on them! Or, instead of getting brand new stainless steel appliances, why not get new faceplates for your existing appliances? That way, they’ll look new, but they’ll only cost a fraction of the price! The same goes for your cabinets. Instead of getting all new cabinets, just replace the doors (or, just re-finish the doors and simply opt for new hardware). You’ll get a fresh new look while keeping most of your money in your pocket… That’s the real trend of 2013!

 

 

Justin C. Brennan

Estates Director

Harcourts Prestige Properties

La Jolla, CA

619-823-2120

www.TheLaJollaLife.com

 

Watch This Fun Video! CLICK HERE

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Justin C Brennan | 7825 Fay Ave ste 190 La Jolla, CA 92037 | c: 619-823-2120 | f: 858.386.4123 | thelajollalife.com | HarcourtsUSA

CONFIDENTIALITY NOTICE: This e-mail message from Harcourts (including all attachments) is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review; use, disclosure, copying or distribution is strictly prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. DRE License #01866398

 

Posted via email from Justin Brennan Real Estate