How does $50,000 given to you for a down payment on a house sound?
It all sounds too good to be true, doesn’t it? Well, at least it did until now.
Clackamas County has made this possible through their Neighborhood Rehabilitation Program. Like any loan or transaction in purchasing a home there are always stipulations and qualifications. But, if you ask me, the opportunity could be well worth your time to apply. These programs are all in effort to re-stabilize the local economy and lower the number of foreclosures and bank owned homes on the market.
As far as we can tell there are 3 different loan programs. All except 1 apply to 1st time buyers. Funds are on a first-come first serve basis. One common restriction is the applicant can not have a foreclosure within the past 5 years.
Program 1: CHAP Clackamas Homebuyer Assistance Program. CHAP can allow up to $14,000 in helping qualified 1st time homebuyers to pay for down payment and “reasonable” closing costs. This loan is held at 0% interest and on a deferred payment schedule. Other qualifications and guidelines apply.
Program 2: NCRA North Clackamas Revitalization Area Homebuyers Assistance Program. Allows up to $15k on down payment and again, “reasonable” closing costs. Zero % interest and also on deferred payment plans. This loan differs from the CHAP in regard to it’s specifications on a “qualified borrower”. Some qualifications include person of 62 or older; a Police Officer or current or former member of the military. Other qualifications and guidelines apply. (Program 1 and program 2 can be combined and used together!!)
Program 3: NSP Neighborhood Stabilization Program. Up to $50,000 for down payments, closing costs, pre-paid, primary 1st mortgage reduction and REPAIRS after closing. This program applies to Clackamas County HUD-designated high need census block group-see maps on website for clarification.
Each program, while carrying their own stipulations, requires the applicant to attend a Homebuyer class and get pre-approved by a first mortgage lender.
I can appreciate that all of these programs come with an educational requirement. Like they say, knowledge is power! How can we expect to change the mistakes we made in the past without learning how to prevent them in the future? Of course, there have been some choices made out of our control, which inevitably aided in our current economic state. But, if we can all learn the processes and responsibilities of owning a home, maybe and just maybe, a few more foreclosures can be prevented in the future.
Websites for the above programs:
www.clackamas.us/cd/nwp.jsp
www.clackamas.us.cd/downpayment.htm
www.clackamas.us/transportation/renewal/ncraloangrant.htm
We have extensive experience in the above programs and would love to help you become a homeowner. Not only will you be purchasing a bank owned home or a pre foreclosure which are usually 10K to 20K under market value, you will also have up to 50K given to you for your down payment, closings costs, and improvements to the home. This is an absolutely incredible program and an opportunity to take a huge step forward in your financial goals. Contact us today for more detailed information. Each of the above programs requires a real estate agent to attend classes and be trained in handling these programs correctly. We will guide you through the entire process. You can reach Jeremy at 503-209-6183 or catchtrump@yahoo.com. Best wishes and God Bless Clackamas County.
Monday, September 6, 2010
Tuesday, July 13, 2010
To Short Sale or Not to Short Sale?
TO SHORT SALE OR NOT TO
SHORT SALE?
TO BUY OR NOT TO BUY A
SHORT SALE?
Those are the questions!
Many people are curious about a short sale and the process involved in either selling a home via a short sale or buying a short sale home. There are advantages and disadvantages to both.
What is a short sale? A short sale is a process that a seller uses to sell their home when the market value of the home is considerably less then the loan balance the seller owes on the property. It is a process where by the lender agrees to accept less then what is owed on the property and allow the home to be sold to a new buyer. This is very common today in the Portland metro market area and most other cities across the country right now.
Unfortunately, the process can be very frustrating and annoying for both buyers and sellers due to the fact most lenders take their time in evaluating and negotiating a short sale. It is a long and daunting process. However, if you have a skilled real estate agent helping you then the process can be a much more comfortable journey.
Here are some common questions and answers concerning short sales.
How long does a short sale usually take?
This depends greatly on who is the lender, their specific process and if there is only one lender or multiple lenders associated with the home. Typical short sales take anywhere from 90 days to as much as 6 months or even a year in some extreme cases. This can be extremely frustrating for a buyer to try and wait for a decision from the lender or lenders.
Why is the property still listed as active on the market if a buyer and seller have an accepted offer on the property and are waiting for the bank to approve the short sale?
90% of the time the first buyer who puts in an offer on a short sale usually finds another property that is not a short sale and will back out of the transaction prior to the bank making a decision. This is very common because most buyers want to purchase a home within 30 days or so and have a hard time waiting for the bank. A good listing agent will continue to market the property and get 2 or 3 back up offers on the property to ensure there is a ready and able buyer to close on the property once the bank makes their decision. It is very common for the 2nd offer or 3rd offer to have the choice in purchasing the home. A good buyer's agent will help most buyers that have an accepted offer on a short sale continue to look at other homes that are not short sales in case they find another property they like better and can close sooner.
What price can a buyer expect to pay for a short sale property?
Overall, you can expect to get a small discount below market value of other properties that are not short sales. During the short sale process banks will send out either an experienced real estate agent or an appraiser to get a BPO (Broker's Opinion of Value) or an appraisal on the property. This value is close to what the realistic market value of the property is as of the date of the report. The bank will then use that information to decide what price they are willing to accept on a short sale. Typically, most banks will allow a small discount below the market value of the property because they are saving costs if they receive a payoff on the home now rather then wait for the foreclosure process to gain control of the home. Once the bank makes a decision they will either accept the offer or make a counter offer to the buyer's offer. If the buyer does not accept the bank's counter offer then the listing agent will go to the back up offers and see if they want to proceed and if not then he or she will put the property back on the market knowing exactly what price the bank will accept. It is usually a very short time after that when a new offer will come in at exactly what the bank wants for the home. Short sales with an approved price from the bank go very quickly because they are usually a little under the real market value of the property and no more decision time is needed from the bank.
Do most lenders allow a short sale or is a foreclosure more common?
Most lenders will accept a short sale. A very good listing agent can get the foreclosure date postponed during the short sale negotiation process. As long as the offer is realistic in terms of what the actual market value of the property is then most short sales end up selling to one buyer or another.
Should I consider buying a short sale or selling my home on a short sale?
This depends on your specific circumstances and your real estate goals. An experienced agent in short sales can help you discuss all of the advantages and disadvantages and the options available to you. For more information please visit www.daveandjeremy.com and let us know your desire to learn more or feel free to share your situation with us so we can discuss your options in more detail.
SHORT SALE?
TO BUY OR NOT TO BUY A
SHORT SALE?
Those are the questions!
Many people are curious about a short sale and the process involved in either selling a home via a short sale or buying a short sale home. There are advantages and disadvantages to both.
What is a short sale? A short sale is a process that a seller uses to sell their home when the market value of the home is considerably less then the loan balance the seller owes on the property. It is a process where by the lender agrees to accept less then what is owed on the property and allow the home to be sold to a new buyer. This is very common today in the Portland metro market area and most other cities across the country right now.
Unfortunately, the process can be very frustrating and annoying for both buyers and sellers due to the fact most lenders take their time in evaluating and negotiating a short sale. It is a long and daunting process. However, if you have a skilled real estate agent helping you then the process can be a much more comfortable journey.
Here are some common questions and answers concerning short sales.
How long does a short sale usually take?
This depends greatly on who is the lender, their specific process and if there is only one lender or multiple lenders associated with the home. Typical short sales take anywhere from 90 days to as much as 6 months or even a year in some extreme cases. This can be extremely frustrating for a buyer to try and wait for a decision from the lender or lenders.
Why is the property still listed as active on the market if a buyer and seller have an accepted offer on the property and are waiting for the bank to approve the short sale?
90% of the time the first buyer who puts in an offer on a short sale usually finds another property that is not a short sale and will back out of the transaction prior to the bank making a decision. This is very common because most buyers want to purchase a home within 30 days or so and have a hard time waiting for the bank. A good listing agent will continue to market the property and get 2 or 3 back up offers on the property to ensure there is a ready and able buyer to close on the property once the bank makes their decision. It is very common for the 2nd offer or 3rd offer to have the choice in purchasing the home. A good buyer's agent will help most buyers that have an accepted offer on a short sale continue to look at other homes that are not short sales in case they find another property they like better and can close sooner.
What price can a buyer expect to pay for a short sale property?
Overall, you can expect to get a small discount below market value of other properties that are not short sales. During the short sale process banks will send out either an experienced real estate agent or an appraiser to get a BPO (Broker's Opinion of Value) or an appraisal on the property. This value is close to what the realistic market value of the property is as of the date of the report. The bank will then use that information to decide what price they are willing to accept on a short sale. Typically, most banks will allow a small discount below the market value of the property because they are saving costs if they receive a payoff on the home now rather then wait for the foreclosure process to gain control of the home. Once the bank makes a decision they will either accept the offer or make a counter offer to the buyer's offer. If the buyer does not accept the bank's counter offer then the listing agent will go to the back up offers and see if they want to proceed and if not then he or she will put the property back on the market knowing exactly what price the bank will accept. It is usually a very short time after that when a new offer will come in at exactly what the bank wants for the home. Short sales with an approved price from the bank go very quickly because they are usually a little under the real market value of the property and no more decision time is needed from the bank.
Do most lenders allow a short sale or is a foreclosure more common?
Most lenders will accept a short sale. A very good listing agent can get the foreclosure date postponed during the short sale negotiation process. As long as the offer is realistic in terms of what the actual market value of the property is then most short sales end up selling to one buyer or another.
Should I consider buying a short sale or selling my home on a short sale?
This depends on your specific circumstances and your real estate goals. An experienced agent in short sales can help you discuss all of the advantages and disadvantages and the options available to you. For more information please visit www.daveandjeremy.com and let us know your desire to learn more or feel free to share your situation with us so we can discuss your options in more detail.
Thursday, July 8, 2010
Tax Credit Gone - What Now? Why Buy?
TAX CREDIT IS GONE...
WHAT NOW? / WHY BUY?
More Reasons than 1
So now that the First Time Home Buyer Tax Credit is gone, people ask me "Dave, why should I buy a home?" There are so many reasons to buy a home and if you missed the $8000 tax credit and think that buying a home is not as important now...keep reading and see why it is still the best time to buy now!
Out of all the reasons to buy a home in today's market, one reason or another will mean more to you than someone else, so I will simply put my top five reasons to buy a home, the first two are why to buy a home Today!
1. Low Interest Rates - I used to be a mortgage broker and never have I seen rates this low. Right now you can get an FHA or Conventional Mortgage for under 5% and VA is offering 4.5% for 30 year fixed! There are also rates under 4% for 5 year Fixed Mortgages. If I could buy more homes I would.
2. Home Values - Right now homes are the lowest they are going to be and combined with low interest rates it's only a matter of time that they will start to increase as people start taking advantage of these rates. We have already seen an increase in home values this year and there are less people loosing their homes to foreclosures. That means it is only going to get better. Slowly, but better.
3. Security - I remember as a child growing up in several homes because my parents never owned a home. We always rented and that caused a lot of stress on my Dad because we literally had to move every year. I was never in the same home for over a year because either the seller wanted to increase rents, move back in, sell the home, or he had not made payments and the home was sold at auction. Even though I had a great childhood, I never had those height lines on my bedroom door for every year, or those same friends in the same school district. Today I completely appreciate the fact that I can live in my home without the fear of increasing rent rates or being told that I can't renew my rental agreement. My son, I hope, will always have the same friends and live in the same house.
4. Tax Deductions - I was so amazed at how much interest I was writing off with a purchase money mortgage. Today's Rates are the best I've seen in Years! If you purchased a home today for $250,000 even at 5% you would be able after one year to deduct over $12,000! The monthly payment (not including taxes and insurance) would be less than $1400 a month. Have you seen what you can get now for $250K! Call me today and I can let you know what you can expect pending how much you can afford to purchase. If you’re renting, you know that it is just going in the owners pocket and he is getting the benefits.
5. Investment - When I purchased my first home in 2004 I bought it for $166,000 and that included closing costs. It of course has gone up and down with the housing bubble, but even still, today it is valued at $180K...so even with the ups and the downs, Real Estate will always go up. My brother bought a home in 1999 for $125K that is now worth roughly $200K. If he sold it today that would pay for two college educations! Think about that!
When you're ready to buy, or sell, please make sure you contact Dave and Jeremy for up to date information on the market as well as expert marketing and negotiating. We understand the entire process and can refer you to great mortgage brokers and other industry professionals!
Wednesday, May 12, 2010
We Are On The News!!!
This being our first blog, we'd like to take this opportunity to showcase a success of ours. As Real Estate Agents, any agent can work with buyers who today who can't get a mortgage due to strict lending guidelines...but they don't because it is not as proffitable or they feel it is too risky. A few years back we started Lease Option Group and then added Owner Finance Group. Since then we have been very successful with buyer referrals from the District Attorney and being noticed by the media including the Oregonian and Katu Channel 2 News Portland. Here is a clip of the broadcast about Owner Financing. Anna Song interviewed Dave Van Nus and the buyer and sellers in this video both worked with Dave and Jeremy. In fact, right after this broadcast, the sellers home sold a week later. The power of Creative Financing should always be explained even if it is not an option. In this market you have the right to know.
For More Info On Lease Options or Owner Financing go to our website and contact Dave and Jeremy
For More Info On Lease Options or Owner Financing go to our website and contact Dave and Jeremy
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