Homebuyers Need To Purchase Homes With Potential To “ADD” Value Through Renovation And Home Improvements As House Values Look To Remain Weak Through Spring Of 2012

25 04 2011
  •  Morgan Stanley predicts U.S. home prices will fall 6 percent to 11 percent in 2011
  • This correlates to a 39 percent drop from their 2006 peak through the spring of 2012
  • Morgan Stanley previously estimated values would drop 35 percent from the peak
  • The greater home price decline will come from a combination of non- distressed price declines and a shift-in-mix toward more distressed sales
  • Distressed homes sale prices appear to have stabilized while non-distressed prices are accelerating their rates of decline
  • The S&P/Case-Shiller index of 20 U.S. cities will probably show tomorrow that prices fell 3.3 percent in February from a year earlier
  • The measure was down 32 percent in January from its July 2006 peak
  • The following is the list of major reasons homes prices will continue to decline:
  1. A large supply of delinquent and bank-owned properties
  2. Uncertainty about home-finance and foreclosure regulations
  3. Proposals to reform mortgage companies Fannie Mae and Freddie Mac
  4. Requirements under Dodd-Frank legislation that lenders hold a percentage of mortgages
  5. Negotiations with state attorneys general to settle foreclosure disputes may further depress prices

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/04/24/bloomberg1376-LK7OFX0YHQ0X01-1UUCNLHJA14V3H5QNVBG6FGE65.DTL#ixzz1KYG2WhG7

REO Homes: Forecasts Show Foreclosures Nationally Could Top 11 Million Homes In Next 5 Years To 10 Years

26 02 2011

FundMyRemodel.com Mortgage Underwriting Update: Fannie Mae Will Allow Homebuyer’s To Use “Gifts And Grants” For Minimum 5% Down Payments Beginning Dec. 13

20 11 2010

NEW lending guidelines being rolled out by Fannie Mae will make securing a mortgage a lot easier for some borrowers but harder for others.

The rules, effective on Dec. 13, will allow buyers to use gifts and grants from nonprofit groups for their minimum 5 percent down payment, which is the threshold set by Fannie Mae, the government-owned “company that sets lending standards and buys mortgages from lenders. (Freddie Mac is considering similar new guidelines, said Brad German, a spokesman.)

Previously, borrowers had to contribute a minimum 5 percent down payment from their own funds, but additional down payment money could be from a gift (though never from a home seller). The exception was for borrowers who put 20 percent down: all that money could come as a gift.

Because many lenders now require a down payment of 10 percent or more, the new rules mean that borrowers will still have to come up with extra funds — either their own or gifts.

Still, “this is definitely going to help upgrade buyers and young couples who for whatever reason don’t have enough money and are getting some from their families,” said Edward Ades, the owner of Universal Mortgage, a broker in Brooklyn.

The gift rules apply only to single-family principal residences, including town houses, co-ops and condominiums, and covers mortgage amounts in excess of 80 percent of the property’s value. Also, there is a limit on the loan balance — $729,000 in high-cost areas like New York City, and $417,000 in other areas.

For more:  http://www.nytimes.com/2010/11/21/realestate/21mort.html

Renovation-Radio.com Interview: Skip Schenker Talks With John Reyes Of OpenHousesInc.com About The Professional Real Estate Site (Audio)

8 10 2010

Skip Schenker with John D. Reyes (on left) of OpenHousesInc.com at the CAR Realtors Expo in Anaheim, CA on Oct. 6 (CLICK ON PICTURE TO HEAR INTERVIEW)

Skip Schenker talks with John Reyes of OpenHousesInc.com about how his company, a professional Real Estate site, is committed to becoming the premier home finding destination on the web. The simplicity and user friendly design are key factors as to why OpenHousesInc.com is so widely used and accepted. Their goal is to work hand in hand with Real Estate professionals to drive potential buyers to the front door of their listings.

“Sunset Magazine Dream Remodel”: Contractor Used State-Of-The-Art Technology From “cyberManor” To Integrate Lighting, Entertainment, Environment, Electricity Usage And Security (Video)

23 07 2010

De Mattei Construction selected cyberManor’s state-of-the-art technology solutions to be showcased in the 2010 Sunset Idea Home built for Sunset Magazine Dream Remodel Issue. This was cyberManor’s 4th Sunset home in partnership with deMattei.

“…guests are able to see the minute by minute electrical usage of the home in a real time dashboard that displays how cyberManor’s integration of these automated home control solutions can significantly reduce electricity consumption and save money…”

In this extensive remodel cyberManor designed and installed a technology infrastructure utilizing the latest smart home solutions for entertainment, comfort, and control. cyberManor integrated and deployed the HP (www.hp.com) and Control4 (www.control4.com) family of hardware and software products to provide a seamless, reliable, and easy to use method for the control of the electronic home entertainment, lighting and comfort equipment from several in wall keypads, touchscreens and universal remote controls. Guests of the home can even control the home by simply touching the intuitive lighting, music, or TV icons on Apple’s phenomenally successful iPAD computer.

For more:  http://www.cybermanor.com/

Skip Schenker “The 203k Guy” Discusses: How To Buy a Bank Foreclosure With An FHA 203(k)

21 06 2010

It’s a buyers market.  There are so many homes to choose from and you just can’t find the right home that suites your needs?

Skip Schekler is an industry expert in the FHA 203(k). He completed Hundreds of 203(k)s as a Loan Officer and has published articles on the subject . He Authored a 3 Hr. DRE Approved CE Class called "Sell more homes with Renovation Loans" Skip has many REO industry contacts. His previous experience included being a licensed contract in 1987, licensed real estate agent since 1992 and a licensed broker since 2008. He also was previously the Vice President of a Construction Lending Department.

I have good news for you, the government has a unique loan that will allow you to buy a home that is in the right neighborhood, but needs fixing up.  This loan is insured by Federal Government all you need to do is provide a bid from a licensed contractor, or an national home improvement store like Home Depot or Lowes for all the work you want to do and they finance your home including all of the home improvement costs:

Example:  Let’s say you find a home for $130,000; but it needs new paint, carpet, windows, doors and new kitchen and bathroom countertops and appliances.  All of the work is going to cost about $30,000.  
Your wife tells you that she likes the street, the neighborhood, the school district, the house is nice from the outside; but it needs too much work and you don’t have the money to fix it up once you move in.  It makes no sense to charge up your credit cards with $30,000; the minimum monthly payment on $30,000 in credit cards is about $750.00.
Nobody wants to get strapped down with that kind of credit card debt.
In comes the FHA 203(k) loan.  You can buy that house and get one loan for $160,000 which includes the purchase price of $130,000 plus $30,000 in repair costs.  (Less 3.5% down payment).  
When you build in the repair costs into your loan interest rate mortgage, the additional monthly payment is about $198.00/month more.  (Which is tax deductible)
This is a “full doc” loan which means you must provide all of your income and asset documentation as well as have fairly good credit, it doesn’t have to be perfect, but you must be able to show that you have been responsible with your credit the last 24 months.
There is a renovation loan for investors, but it is a conventional renovation loan and requires a larger down payment.
For more information about this unique FHA 203(k) Renovation loan, please visit my website http://www.REOLenders.com or call me 714-681-3768.