If you have not built an emergency kit, or you have not inspected the one you have lately, the link below has some good information on how to put a disaster kit together. The site concentrates on San Francisco, but the kit information is good for almost anywhere.
Build a 72 hour disaster kit
Sunday, March 13, 2011
Friday, January 15, 2010
My thoughts exactly
Shortly after I wrote the post below, I saw this:
3 reasons home prices are heading lower - CNNMoney.com
3 reasons home prices are heading lower - CNNMoney.com
Wednesday, January 13, 2010
I am not so sure this is a good time to buy a house, but if you are, some tips
While interest rates are very low, and many real estate professionals will tell you it is a great time to buy because of the low rates, other concerns may be cause to wait. Two points that I feel should be considered are: what happens to prices when rates inevitably rise and will the large number of homes with owners no longer paying the mortgage finally pour onto the market?
Banks approve loans based on the ability make the scheduled payments. When rates are low, the same payment can support a larger loan amount. This pushes up home prices because bidders can offer more for the same payment the banks are willing to approve based on a given income. When rates rise, banks approve lower loan amounts, reducing the amount home buyers can offer, pushing down prices.
In addition, record numbers of mortgages are not current on the payments(see graph below). Why such a large number of mortgages are delinquent, and the homes are not being foreclosed on, is subject of much debate and speculation. How these non-performing mortgages are finally worked out is beyond my ability to predict the future. That understood, my opinion is that the combination of low rates and large numbers of defaulting mortgages creates a situation where the downside risk to housing prices is greater then the upside risk. In such a situation, I advise buyers to carefully consider buying a home.
If it is known that the home will not be sold for 15 - 20 years, and a 30 fixed loan is used, it could be a OK time to buy because the payment will be on the affordable side and will not go up. The concern is that if in say 5 years the home will need to be sold, rates may be higher and the large number of defaulting mortgages could be causing increased supply--a double whammy for prices.
In the event you do decide now is the time for you to buy, here are a couple of links you should visit to help you do due diligence on the home you are considering:
50 Tools to Research Your New Home, Neighborhood, and Community
When 'dream house' becomes horror home
Banks approve loans based on the ability make the scheduled payments. When rates are low, the same payment can support a larger loan amount. This pushes up home prices because bidders can offer more for the same payment the banks are willing to approve based on a given income. When rates rise, banks approve lower loan amounts, reducing the amount home buyers can offer, pushing down prices.
In addition, record numbers of mortgages are not current on the payments(see graph below). Why such a large number of mortgages are delinquent, and the homes are not being foreclosed on, is subject of much debate and speculation. How these non-performing mortgages are finally worked out is beyond my ability to predict the future. That understood, my opinion is that the combination of low rates and large numbers of defaulting mortgages creates a situation where the downside risk to housing prices is greater then the upside risk. In such a situation, I advise buyers to carefully consider buying a home.
If it is known that the home will not be sold for 15 - 20 years, and a 30 fixed loan is used, it could be a OK time to buy because the payment will be on the affordable side and will not go up. The concern is that if in say 5 years the home will need to be sold, rates may be higher and the large number of defaulting mortgages could be causing increased supply--a double whammy for prices.
In the event you do decide now is the time for you to buy, here are a couple of links you should visit to help you do due diligence on the home you are considering:
50 Tools to Research Your New Home, Neighborhood, and Community
When 'dream house' becomes horror home
Wednesday, July 22, 2009
Video Helps Homeowners Gather Paperwork for Faster Mortgage Help
Freddie Mac has produced a video that shows late-paying borrowers how gathering a few financial documents before calling a mortgage servicer can cut the time needed to determine their eligibility and process their application for a loan modification under the Making Home Affordable program or Freddie Mac's other workout initiatives.
Available in English and Spanish versions, the new Freddie Mac video, “Stop Foreclosure: Documents Your Lender Needs to Help You,” can be seen at Freddie Mac’s channel on YouTube at www.youtube.com/FreddieMacWeb. The two-minute video shows step-by-step which documents borrowers should have on hand when they call their servicer to discuss loan modifications. These documents can cut the time a servicer will need to understand the borrower's situation, determine his or her eligibility for a workout, and process the application.
Available in English and Spanish versions, the new Freddie Mac video, “Stop Foreclosure: Documents Your Lender Needs to Help You,” can be seen at Freddie Mac’s channel on YouTube at www.youtube.com/FreddieMacWeb. The two-minute video shows step-by-step which documents borrowers should have on hand when they call their servicer to discuss loan modifications. These documents can cut the time a servicer will need to understand the borrower's situation, determine his or her eligibility for a workout, and process the application.
California Dept. of Real Estate Issues Fraud Warning About Loan Modification Programs
The California Dept. of Real Estate (DRE) recently issued a fraud warning alerting consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert is available in both English and Spanish. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 desist and refrain orders. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp.
It is worth noting that not all firms who collect advance fees for loan modification services do so illegally, the DRE said. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.
C.A.R. advises members to carefully look at any program that may appear to have a government seal. C.A.R. is not aware of any government programs that have exclusive areas for which you have to pay to participate, and cautions all members to be on the alert for schemes seeking funds from REALTORS® or consumers with no value, or that may be misleading or unlawful.
It is impossible to list all of the Red Flags that might suggest fraud, since the scammers and con artists continue to modify and refine their stories, pitches and cons. They are ruthless and clever. Please be alert, be skeptical, and do your own homework.
And remember, Don’t Rush! You are always able to “slow down” or “pause”, and you should tell the provider of loan modification services that you want to check out their license status with the DRE or the California State Bar. Any service provider who objects to that request may have something to hide, like no credentials or license (or bogus credentials) – so be wary!!! Log on, Look em up, and Check em out!!! www.dre.ca.gov.
It is worth noting that not all firms who collect advance fees for loan modification services do so illegally, the DRE said. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.
C.A.R. advises members to carefully look at any program that may appear to have a government seal. C.A.R. is not aware of any government programs that have exclusive areas for which you have to pay to participate, and cautions all members to be on the alert for schemes seeking funds from REALTORS® or consumers with no value, or that may be misleading or unlawful.
It is impossible to list all of the Red Flags that might suggest fraud, since the scammers and con artists continue to modify and refine their stories, pitches and cons. They are ruthless and clever. Please be alert, be skeptical, and do your own homework.
And remember, Don’t Rush! You are always able to “slow down” or “pause”, and you should tell the provider of loan modification services that you want to check out their license status with the DRE or the California State Bar. Any service provider who objects to that request may have something to hide, like no credentials or license (or bogus credentials) – so be wary!!! Log on, Look em up, and Check em out!!! www.dre.ca.gov.
Monday, June 1, 2009
Get your $8,000 tax credit in advance
From today’s Union-Tribune:
By ALAN ZIBEL, The Associated Press
12:24 p.m. May 29, 2009
WASHINGTON — Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit to pay for some of the costs of buying a home.
The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can get advances from lenders that let them effectively receive the credit in advance, so they don’t have to wait to get the money from the Internal Revenue Service.
Most borrowers will still have to come up with the FHA’s required 3.5 percent down payment, unless they work through a state or local housing agency or an approved nonprofit. Ten states have such programs in place, according to the National Council of State Housing Agencies.
But there are many other potential uses, such as for closing costs and fees, or to beef up the down payment beyond the minimum level.
The FHA which insures about a quarter of new home loans, is projected to guarantee about 2.2 million loans in the next budget year.
Any buyer who has not owned a home in the past three years is considered a first-time buyer and eligible for the program. Borrowers can claim the credit by filing an amended 2008 tax return or can wait for their 2009 return.
The change “will present an enormous benefit for communities struggling to deal with an oversupply of housing,” Housing Secretary Shaun Donovan said in a statement.
The tax credit was included in the economic stimulus package signed by President Barack Obama in February. It is not available to individuals with incomes above $95,000 or couples with incomes above $170,000 and expires Nov. 30.
Real estate agents and homebuilders generally welcomed the change. Jerry Howard, chief executive of the National Association of Home Builders, called it a "great step in the right direction." On Wall Street, shares of such builders as Toll Brothers and D.R. Horton rose on the news.
Still, some real estate agents were concerned that many buyers won’t benefit at all if they can't use it for a down payment – a big hurdle for many first-time buyers.
By ALAN ZIBEL, The Associated Press
12:24 p.m. May 29, 2009
WASHINGTON — Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit to pay for some of the costs of buying a home.
The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can get advances from lenders that let them effectively receive the credit in advance, so they don’t have to wait to get the money from the Internal Revenue Service.
Most borrowers will still have to come up with the FHA’s required 3.5 percent down payment, unless they work through a state or local housing agency or an approved nonprofit. Ten states have such programs in place, according to the National Council of State Housing Agencies.
But there are many other potential uses, such as for closing costs and fees, or to beef up the down payment beyond the minimum level.
The FHA which insures about a quarter of new home loans, is projected to guarantee about 2.2 million loans in the next budget year.
Any buyer who has not owned a home in the past three years is considered a first-time buyer and eligible for the program. Borrowers can claim the credit by filing an amended 2008 tax return or can wait for their 2009 return.
The change “will present an enormous benefit for communities struggling to deal with an oversupply of housing,” Housing Secretary Shaun Donovan said in a statement.
The tax credit was included in the economic stimulus package signed by President Barack Obama in February. It is not available to individuals with incomes above $95,000 or couples with incomes above $170,000 and expires Nov. 30.
Real estate agents and homebuilders generally welcomed the change. Jerry Howard, chief executive of the National Association of Home Builders, called it a "great step in the right direction." On Wall Street, shares of such builders as Toll Brothers and D.R. Horton rose on the news.
Still, some real estate agents were concerned that many buyers won’t benefit at all if they can't use it for a down payment – a big hurdle for many first-time buyers.
Thursday, April 30, 2009
Is Now a Good Time to Buy?
With the large reduction in prices of homes, many are wondering if now is the time to buy? My opinion is: depends.
If you are in a situation where you have a lot of pressure to purchase a home, it is possible to find deals. Problem is, the homes available in desirable neighborhoods at attractive prices tend to be short sales or foreclosures. Many people will not have the patience or flexibility buying a short sale will most likely require; the below market foreclosures the banks are trickling onto the market often have dozens of offers on them in days. Sometime investors come in with all cash offers putting buyers needing financing at a disadvantage. Many normal sellers still are adjusting expectations and are listing properties with the hope of selling at prices at levels seen during the bubble years. So if you need to buy now, and want to buy at a price you will not regret in a year or two, prepare to do some work finding short sales and foreclosures suitable for you and make multiple offers until one works out.
For those buyers that can wait for 6 months to 2 years, below are some articles that support the position that prices will continue to fall for the foreseeable future. No one knows the future, but after the reading the articles below, I believe that most buyers will be well severed by being patient and watching the market and using the time to save as big a down payment as possible.
FORECLOSURE ACTIVITY INCREASES 9 PERCENT IN FIRST QUARTER
4-7 — CA Foreclosures About to Soar…Again
If you are in a situation where you have a lot of pressure to purchase a home, it is possible to find deals. Problem is, the homes available in desirable neighborhoods at attractive prices tend to be short sales or foreclosures. Many people will not have the patience or flexibility buying a short sale will most likely require; the below market foreclosures the banks are trickling onto the market often have dozens of offers on them in days. Sometime investors come in with all cash offers putting buyers needing financing at a disadvantage. Many normal sellers still are adjusting expectations and are listing properties with the hope of selling at prices at levels seen during the bubble years. So if you need to buy now, and want to buy at a price you will not regret in a year or two, prepare to do some work finding short sales and foreclosures suitable for you and make multiple offers until one works out.
For those buyers that can wait for 6 months to 2 years, below are some articles that support the position that prices will continue to fall for the foreseeable future. No one knows the future, but after the reading the articles below, I believe that most buyers will be well severed by being patient and watching the market and using the time to save as big a down payment as possible.
FORECLOSURE ACTIVITY INCREASES 9 PERCENT IN FIRST QUARTER
4-7 — CA Foreclosures About to Soar…Again
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