What are you waiting for?  Real Estate is Jumping there are so very many great values available now,  get busy and find a good realtor to help you into you first home, investment property, home for you son or daughter, vacation or retirement.  Just don’t sit on the side wondering “Should I”  or “Will the Market go Down?” 

The Banks are not out to get you or me and the interest rates are AWSOME.   Finding a good loan is not that hard if you have someone who will work with you for the best rates.

If you need to find a realtor in the Manteca Area, go to my website at www.conniereedrealtor.com,

I know I’m Tooting my own horn, but it’s time to tell people that 2009 is the year for change and owning a new home is not impossible…..

Two Alternatives to Foreclosure

The housing legislation that is close to becoming law may help as many as 500,000 cash-strapped homeowners avoid foreclosure, by assisting them in refinancing into more-affordable government-backed mortgages.

But since many struggling borrowers may not qualify, people facing foreclosure should also familiarize themselves with two other options: “short sales” and “deed in lieu of foreclosure” transactions.

Neither option will keep you from losing your house or avoid severe damage to your credit score. Still, they may be less painful in some ways than foreclosure, the legal process in which the bank repossesses a homeowner’s property because of failure to meet the terms of the mortgage.

In a short sale, the borrower sells the house at a fair market value that is less than the amount owed on the mortgage, and the lender usually agrees to forgive the remainder of the debt.

In the other option, the borrower hands over the property to the lender with the lender’s consent “in lieu of” waiting for foreclosure. The obligation falls on the lender to sell the house; as in a short sale, the lender typically agrees to forgive the amount by which the mortgage balance exceeds the house’s current value.

Put Debt Behind You

A key advantage of both strategies is that most individuals walk away from their house freed of their mortgage debt, a psychological and legal relief, says Vicki Vidal, an associate vice president at the Mortgage Bankers Association.

In contrast, in foreclosure proceedings, lenders can theoretically pursue the differential owed to them, depending on state law. The great majority of lenders don’t pursue this debt, but it has occurred, particularly in cases where the borrower vandalized the property upon departure.

A second benefit of short sales and deeds in lieu of foreclosure is that borrowers will generally face a shorter waiting period before they can obtain another mortgage.

Many lenders primarily make loans that they can sell to big mortgage players Fannie Mae and Freddie Mac. Starting Aug. 1, Fannie Mae generally will not buy loans made to borrowers involved in a short sale in the past two years. That’s shorter than the four-year wait time if you have a deed in lieu of foreclosure on your record, and the five-year wait time if you have a foreclosure on record. (The current wait time is four years for a foreclosure or a deed in lieu of foreclosure; there is no existing policy for borrowers with a short sale.)

Freddie Mac generally won’t guarantee loans made to borrowers who have had a foreclosure in the past four years, says Freddie Mac spokesman Brad German. (If the foreclosure was due to circumstances beyond the borrower’s control, such as a medical emergency, then Freddie Mac will guarantee the loan in two years’ time). The company considers short sales and deeds in lieu of foreclosure a significant negative but not an “automatic no,” says Mr. German.

A Blow to Credit Scores

What short sales and deeds in lieu of foreclosure don’t do is minimize the impact on a borrower’s credit score. All three proceedings have roughly the same negative impact on an individual’s credit score, says Craig Watts, spokesman for Fair Isaac Corp., which created the widely used FICO score.

Mr. Watts says that to date little analysis has been done distinguishing, for instance, the credit risk of individuals who completed a short sale versus those involved in a foreclosure. For that reason, “the model ends up treating them [a short sale, a deed in lieu of foreclosure, and a foreclosure] all the same.”

If homeowners are interested in pursuing a short sale, they should open discussions with their lender or loan servicer before attempting to sell their house.

For both short sales and deeds in lieu of foreclosure, borrowers will have to present a “hardship letter” to the lender or servicer detailing why they are unable to make their mortgage payments.

Lenders have shown increasing willingness to negotiate short sales and deeds in lieu of foreclosure because of the losses they frequently incur in foreclosures.

Short sales are considered preferable because they save lenders the hassle of selling the house. But a deed in lieu of foreclosure also has its advantages to lenders versus foreclosure: “The earlier they get the home, the better the condition the property is in,” says Ms. Vidal of the Mortgage Bankers Association.

Still, for both short sales and deeds in lieu of foreclosure, the process of negotiating with lenders can quickly become complicated. If a borrower took out second and third mortgages, he or she may need to negotiate with multiple firms.

Whether attempting a short sale or a deed in lieu of foreclosure, borrowers should take a “proactive approach,” says John Snyder, homeowner specialist with the nonprofit NeighborWorks America.

He recommends that borrowers who foresee problems making their mortgage payments contact a nonprofit organization to help them negotiate with their lending institution.

Write to Emily Green at emily.green@wsj.com

WHAT YOUR HOUSE SHOULD WEAR IN 2009

2008 Color Trends

Liven up your listings using bold, vivid colors mixed with some earthy, natural tones. Paint, furnishings, and accessories are influenced by the natural environment. A few contrasting accents colors will have buyers taking notice.

Bring nature home.

Capturing the colors of the natural world is gaining traction this year with handmade, undyed, and unbleached materials. Off-white, sandy, and linen colors mixed with rock and soil colors and brownish greens are calling nature inside.

Blue hues.

The environment also is inspiring sky and water blues to come inside, even in livening up the kitchen. Be on the lookout in 2009: A deep navy blue that appears almost black and is inspired by the techno world will pop up in more homes.

Ethnic accents.

Color scheme influences from India, China, and Latin America will be evident this year. Expect Moroccan reds and glowing oranges to mix with rosy pinks, sunny golden yellows, and turquoise. For the ultimate color punch, pair them with rich browns and neutrals.

Subdue the shine.

Shimmery metallic finishes are still in, but chrome and nickel are starting to be replaced by softer shades. More homes are being outfitted with copper and bronze tones and bringing more warmth to metallic finishes.

Source: Color Marketing Group, an international association of color design professionals, which reports on color trends every year.

Financing Your Home      

Most real estate professionals and mortgage lenders recommend pre-qualifying for a loan before selecting a home to purchase. This process will help you:

• Determine the price range you can afford.
• Understand the types of loans you qualify for.
• Determine what your monthly payment will be.
• Estimate the downpayment and closing costs.

The Loan Process

Try pre-qualifying for a mortgage with our in house lender(call agent for more info) or let your REALTOR® help you to select a mortgage lender. Once you have made your decision, these are the steps of the process:

• Application – All pertinent documentation is obtained. Fees and down payments are discussed, and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-lending statement (TIL), itemizing the rates and associated costs for the loan.
• Documentation – If not already completed in the pre-qualification stage, your REALTOR® will order all necessary supporting documentation. Once inspections are completed, your Associate will order an appraisal on the property. As it comes in, documentation is checked for any irregularities.
• Loan Submission – Once all the necessary documentation is in, your completed file is submitted to a lender for approval. 
• Loan Approval/Underwriting – Loan approval, or underwriting, generally takes 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received before the loan can close. 
• Closing – Once all parties have signed the loan documents, they are returned to the lender. If all the forms have been properly executed, the lender sends the loan funds by wire transfer. At this point, the borrower finishes the loan process and actually buys the house.

First Time Buyers

Congratulations! You are first time buyer. Welcome to your home buying guide. Here are a few things to bear in mind when considering this important step in your life:

• Deposit: The first thing to be aware of is that most lenders will look favorably on you having a cash deposit to put down on a property. This deposit can range from 5-15% of the purchase price. If you were buying a property for $300,000, an expected deposit would range from $15,000-$35,000. In certain cases, a lower or higher down payment may be necessary.
• Find a REALTOR®: Don’t buy a home without one. Besides helping you find the home of your dreams, a REALTOR® assists you with every aspect of your homebuying experience. From appraisals to inspections, contracts to disclosures, questions and concerns, our sales professional are experts in the industry and are eager to help you every step of the way.
• Credit Score: As a first time buyer, your credit score will be used to determine your loan and interest rate options. Credit scores range from 340 to 820. The higher your credit score, the better your loan and interest rate options will be. Guarantee Pacific Mortgage, our in-house lender, specializes in helping first time buyers and can provide you with financial assistance you’ll need to purchase your first home.
• Mortgage Payments: Make sure you know what your interest rate is. Many first time buyers go for a fixed rate so they know exactly how much their total mortgage each month.
• Bills: Buying and maintaining a property is not just about keeping up with the mortgage payments; it is also about paying your bills. Besides your mortgage payment, you will be responsible for gas, electric, water, and sewage bills, not to mention other household amenities (i.e. telephone, television and internet bills). Plan in advance for these costs to make sure you can afford to pay them each month.
• The Rewards: Once you have bought your first home, you can enjoy the benefits of freedom and independence. You will soon discover that it is the best thing you ever did, not just in terms of doing as you please, but also that financially you have made a start in paying back the biggest investment of your life. With property prices seen to be rising higher in the coming years make no mistake that your home will become your most valuable possession. Congratulations and enjoy your new home!

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