Brian Ripp ~ Your Bay Area & Fremont Real Estate & Financial Agent

Fannie Mae has launched a new website to help homeowners who are behind on their mortgage payments or are facing foreclosure.

Knowyouroptions.com features practical information and resources homeowners need to avoid foreclosure and either stay in their home or sell it. Resources include a list of local foreclosure prevention events, housing counselors, Fannie Mae resources, credit score information, forms, videos, calculators and more. The site also provides important tips for recognizing and avoiding foreclosure scams. For more information, visit www.knowyouroptions.com.

from CRS Member Connect on-line newsletter. 

You know that when you are seeking a mortgage you should shop around for the best rate.  But because interest rates fluctuate, it is a good idea to consider locking your rate.  A rate lock, also called a “lock-in”, is a lender’s guarantee that you will get a specific interest rate and number of points if you purchase a home within a certain period of time.

If you do not complete your home purchase or refinancing agreement before the lock expires and interest rates happen to rise, you will pay the higher rate.  If interest rates happen to drop during the lock period, however, you cannot take advantage of them unless you rewrite the lock and pay an additional cost.

Before locking in a rate, keep these tips in mind:

• Get your guaranteed rate lock in writing.
• Lock in as many of the costs as you can, including the interest rate and points.
• Shop around.  Examine both the terms of the contract and its cost.  Some lenders charge an up-front fee, while others offer the service at no cost.

Here are a few tips you can do to help in the quest to ‘go green’.

1. Reduce, recycle, reuse, and buy recycled.  We use a ‘blue’ bin and recycle paper and bottles & cans.

2. Turn off your computer & lights when not in use.

3. Recycle ink cartridges.

4. Use you notepad wisely. Use the entire page, then turn it over and use the other side.

5. Watch what you print.

6. Install motion sensor lights.

7. Buy “energy star” office equipment.

8. Open the blinds. Turn down the lights and let the sun shine in.

9. Recycle old cell phones.

10. Do it yourself.  If the office doesn’t recycle, you can lead the way.

One of the best ways to select a contractor is to ask friends or relatives for recommendations.  Make sure they have worker’s compensation insurance and general liability insurance in case of accidents on the job. 

Building codes set minimum safety standards for construction.  Generally, a building permit is required whenever structural work is involved.   The contractor should obtain all necessary building permits.

• Hire only licensed contractors.
• Contact the Contractors State License Board at www.cslb.com.gov or at 800-321-2752 to verify the contractor’s license.
• Get three references and review past work.
• Get at least three bids.
• Get a written contract and don’t sign anything until you completely understand the terms.
• Pay 10 percent down or $1,000 whichever is less.
• Don’t let payments get ahead of the work.
• Don’t pay cash.
• Don’t make a final payment until you are satisfied with the job.
• Don’t rush into repairs or be pressured into making an immediate decision.

Spring and summer projects are getting underway.  Good luck with your home improvements!

Governor Schwarzenegger today signed AB 183 providing $200 million for home buyer tax credits.  The bill allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

Eligible taxpayers who close escrow on qualified principal residences between May 1, 2010 and December, 31, 2010, or who close escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.

This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under the bill, purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).  Buyers also must be at least 18 years old and be unrelated to the seller.  First-time buyers are defined as those who have not owned a home in the past three years.

 A new study by the USC Lusk Center for Real Estate finds that more immigrants are choosing to put down roots in mid-size cities rather than larger gateway areas, in part because many smaller metro areas feature established, growing neighborhoods of fellow immigrants and less competition for entry-level jobs. The study, “Immigrants and Housing Markets in Mid-Size Metropolitan Areas,” finds that mid-size markets, such as Nashville, Detroit, Colorado Springs, Colo., Minneapolis, Sarasota, Fla., and El Paso, Texas, had an average 27 percent increase in new immigrant population at a time when the major gateway cities are losing residents. The largest numbers of immigrants came from Mexico and China. The study estimates that immigrants and their descendents will make up 82 percent of U.S. population growth over the next 40 years. re Immigrants Choose to Live in Mid-Size Cities A new study by the USC Lusk Center for Real Estate finds that more immigrants are choosing to put down roots in mid-size cities rather than larger gateway areas, in part because many smaller metro areas feature established, growing neighborhoods of fellow immigrants and less competition for entry-level jobs. The study, “Immigrants and Housing Markets in Mid-Size Metropolitan Areas,” finds that mid-size markets, such as Nashville, Detroit, Colorado Springs, Colo., Minneapolis, Sarasota, Fla., and El Paso, Texas, had an average 27 percent increase in new immigrant population at a time when the major gateway cities are losing residents. The largest numbers of immigrants came from Mexico and China. The study estimates that immigrants and their descendents will make up 82 percent of U.S. population growth over the next 40 years.

from CRS member connect newsletter

Foreclosures and bank REOs are pulling a new wave of novice investors into the market, some of whom are just a little clueless.

They see the price and they say, wow! I can buy that house and turn it into a rental.  But they don’t understand the local market, they don’t understand landlording, and don’t even necessarily visit the property.

 What are some of the key rules for freshman class investors?

      Number one: Due diligence is never optional. You’ve got to understand the local market – and that includes not just where prices are headed, but specific market demand for rental real estate in this price segment, and even the local government’s plans for the area where you’re thinking of buying.

      Number two: Buy with a written plan – that’s right, just like the large professional investors use, with an entry strategy and an exit strategy. How long are you going to hold onto the property, how much will it earn you during your period of holding?

      And what’s the endgame – a sale to another investor? Conversion to condos? Tear it down and build something that’s closer to the underlying real estate’s highest and best use?

      Write it all down, that way you can analyze it better.

      Number three: Calculate the actual costs of the property in advance – not just the bargain basement price, but how much you’ll need to fix it and feed it – the management costs, rental commissions, vacancy costs, taxes, to name just a few.

If you don’t know these things up front you are flying blind. And there are few good surprises in real estate.

Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor

www.BrianRipp.com  serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.

Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp

The U.S. House of Representatives today voted 403 to 12 to extend and expand the home buyer tax credit.  The bill passed the U.S. Senate late yesterday and now will go to President Obama for his signature, where it is expected to be signed this week.
 
The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline.  First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500.  Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years.  The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively.  The purchase price of the home is capped at $800,000.
 
Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

information from and w/permission from C.A.R.

Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor

www.BrianRipp.com  serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.

San Francisco was named the best walking city in America by Prevention magazine in conjunction with the American Podiatric Medical Association and Sperling’s Best Places.   Boston, New York, Philadelphia and Chicago rounded out the top five.   Metro areas were evaluated by using 19 criteria, including population density per square mile, use of mass transit, crime rate, and square miles of public parks. 

Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor

www.BrianRipp.com   Serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.

Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp

The evening news is beginning to sound more and more like the children’s fable, Chicken Little – who proclaims “the sky is falling!”  With unemployment on the rise and an uncertain economy, buying a house may be the last thing on your mind.  But if you’ve been waiting to purchase a home, now may be the perfect time.  Here’s why:

* It’s actually more affordable now.  According to the National Association of REALTORS, the housing affordability index, which measures home prices, mortgage interest rates and family income, is more favorable now than any other time since NAR started the index 1970.

* You get a break on taxes.  As part of the American Recovery and Reinvestment Act, first-time buyers (anyone who has not bought or owned a home in the past three years) can take advantage of a tax credit up to $8,000.

* Big selection and big discounts.  There is a large inventory of homes on the market, so you have a variety from which to choose.  Many builders and home sellers are also offering incentives to help move inventory.  Not only are home prices low, but mortgage rates are lower than they’ve been in years.

* Price of ownership.  Want to paint your bedroom midnight blue? Go ahead.  In your own home, you get to make the decorating decisions that reflect your personal sense of style.

Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor

www.BrianRipp.com  serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.

Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp