FHA 203(k) Rehab Loan - a loan to help fix up that "Fixer Upper" you just found

Have you found a home to purchase which you think would be just perfect, if only you had the extra cash to rehab it and bring it up to livable standards?

It can be hard for many to not just come up with a Down Payment for a new home, but add on top of that all inspections one may want to do during Escrow and the additional Closing Costs ... how does anyone have money left over for repairs which are necessary on so many distressed sales?


The FHA 203(k) Rehab Loan could be exactly what you are in need of.  Read below:

Home buyers thinking of purchasing a distressed property in need of repair, but who are concerned that the cost of the repairs could drain their savings account may qualify for the Federal Housing Administration’s (FHA) 203(k) rehabilitation program.

• The FHA’s 203(k) rehabilitation program provides loans for covering renovation costs as well as the purchase price of the primary residence.  Investors are not eligible for this program.  Additionally, similar to traditional FHA loan programs, the rehab program allows for a down payment of as little as 3.5 percent.
  

• A common misperception about the program is that the house needs to be unlivable.  Realistically, the property just needs to be outdated, according to a lender familiar with the program.  The property “just has to appraise below market value and then at market value with the repairs.”
  

• Improvements deemed “luxury” are ineligible; however, the program has a wide range of definitions for “repairs” and “modernization.”  Covered repairs include items such as a new roof or heating system, as well as decorative changes, like replacing vinyl with ceramic tile on the kitchen floor or painting the interior.
  

• In addition to putting down at least 3.5 percent of the current value of the property, buyers also must use a HUD-approved lender, appraiser, and a contractor approved by the lender for the repairs.  One list of approved businesses can be found at 203kcontractors.com.
  

• Borrowers considering the FHA rehab loan program should be aware that loan rates typically run around a percentage point higher than conventional loans, and come in 15- to 30-year terms, either fixed or adjustable.  Additional paperwork for inspection, appraisal, title updating, and the like can increase closing costs by $1,000 or more higher than the average.
  

• For additional information about the FHA 203(k) rehabilitation program, please visit http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm 

  Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.
  

Contact me if you are thinking of purchasing a home which needs some extra money put into it to become livable.

And if you are interested in finding distressed homes in the Santa Clarita Valley, email me and ask to be put onto my DAILY AUTOMATED SEARCH SYSTEM which will send your personal home search criteria directly to your email in-box daily.  (Click this LINK to see an example of a personal Automated Search Page)

No matter where in Santa Clarita you are looking, it would be my pleasure to help get you into a home you will love!

LeeAnn Bell, REALTOR(R)
661-309-2364
LeeAnnRealtor@yahoo.com

DRE License #01260650

Comments Welcome

(c) 2010 LeeAnn Bell

New Law to Protect Tenants in current Foreclosure Crisis

Tenants are currently being affected by the current Foreclosure crisis as well ... being forced out of homes, finding their own credit history damaged with "eviction" notices ... so California Governor Arnold Schwarzenegger recently signed SB1149  enabling Tenants to contest illegal evictions and imposing new requirements for Banks to follow when removing Tenants from Foreclosures. 

Post-Foreclosure Protection for Tenants: Commencing January 1, 2011, a notice to terminate a residential tenant who remains after a foreclosure sale must generally include a statutory notice of the tenant's rights.  This requirement, which sunsets on January 1, 2013, applies to an immediate successor-in-interest for one year after a foreclosure sale.  The tenant's rights must be on a separate cover sheet or, for a 90-day termination, incorporated into the notice to terminate.  Another provision of this bill protects a residential tenant's credit by generally prohibiting the court clerk from revealing unlawful detainer court records unless the plaintiff prevails at trial.  Senate Bill 1149.


Realegal® is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Call me, if you need a FREE list of homes and condos currently FOR RENT in the Santa Clarita Valley.  It would be my pleasure to show you these homes and there is no expense on your part ... the Landlord pays all fees to have their property shown by a REALTOR(R) after a lease is signed and accepted.

LeeAnn Bell, REALTOR(R) ... 661-309-2364
LeeAnnRealtor@yahoo.com

DRE License #01260650

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(C) 2010 LeeAnn Bell
All Questions or Comments Welcome
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 Below is what one client had to say about working with me:

"To prospective clients of LeeAnn Bell ... she is truly a breath of fresh air among the 'we all do it the same and when will I get my commission check' bunch of agents ... she cares about what you are about and she listens to what is important to you ..."

- R.T.

Foreclosure Counseling Scams

Thieves and scammers, unfortunately, are finding ways to take advantage of people who are in desperate situations in this current foreclosure crisis.       

If you are finding that you are falling behind in your mortgage payments, make sure that you read the below scams that are currently robbing people of their money, before you speak to and/or give any money to a Foreclosure Counselor.  The tips below could help protect you from loosing thousands of dollars.

Phony counseling or foreclosure rescue scams: The scam artist poses as a counselor and tells you he can negotiate a deal with your lender to save your house, but only if you first pay him a fee.

He may even tell you not to contact your lender, lawyer, or housing counselor and that he’ll handle all details. He may even insist that you make all mortgage payments directly to him while he negotiates with the lender.

But once you pay the fee, or a few mortgage payments, the scammer disappears with your money.

To protect yourself, avoid a company or person who asks for a fee in advance to work with your lender to modify, refinance, or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure.

Also, don’t stop communicating with your lender. That’s the worst thing you can do. The minute you have trouble paying your mortgage, contact your lender.

And never send a mortgage payment to anyone other than your lender.

Fake government modification programs: Some scammers may claim to be affiliated with, or approved by, the government, or they may ask you to pay high, upfront fees to qualify for government mortgage modification programs.

The scammer’s company name and website may sound like a real government agency. You may even see words on the site like federal, TARP, or others related to official government programs.

Don’t be fooled. Before you sign up, contact your lender, who can tell you if you qualify for any government programs. And you don’t have to pay to benefit from these programs.

Bait and switch: The scam artist may try to convince you to sign documents for a new loan modification that will make your existing mortgage current.

This is a trick. You’re actually signing documents that surrender the title of your house to the scam artist in exchange for a so-called rescue loan.

Rent-to-own or lease-back scheme: The scammer tries to deceive you into signing over the deed to your home and promises that you can remain in the house as a renter and eventually buy it back.

Usually, however, the terms of this deal are so demanding that the buy-back becomes impossible. The homeowner gets evicted, and the “rescuer” walks off with most or all of the equity.

A variation of this scheme has the scammer raising your rent over time to the point that you can’t afford it. After missing several rent payments, you’re evicted, leaving the scammer free to sell your house.

Don’t be afraid to report any scams.

“Many homeowners fail to report because they don’t see themselves as victims of a crime,” Thomasson said. “Instead they might think they made a poor business decision or that that they misplaced their trust. Even those who do acknowledge that there is crime realize that it is likely that the company or person who scammed them is gone and not going to be found and that they likely would not get their money back.”

If you find yourself the victim of a scam, report it so that more people aren’t victimized. It will help authorities build cases against the scammers.

To read this article in its entirety, see HERE 

Do you have further questions about foreclosures, short sales, or how to buy or sell a home in this current real estate market?  Then call me or send me an email.  It would be my pleasure to answer all of your questions:

LeeAnn Bell, REALTOR(R) ... 661-309-2364
LeeAnnRealtor@yahoo.com

DRE License #01260650

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(c) 2010 LeeAnn Bell

All comments welcome

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Banks Suspend Foreclosures

A number of clients have asked me about the suspension of Foreclosures by the Banks and what this means for the Real Estate Market, and what this means for them as Buyers.  Below is the most recent email which I just received, from the California Association of REALTORS(R) regarding this question: 

October 12, 2010
Dear C.A.R. member,

No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide.  

While this situation is changing daily, I want to tell you what we currently know to answer any questions you may have.

• In late September and early October some lenders and servicers began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes.
   
• So far, only Bank of America has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order.  Foreclosures in the other 23 states are processed through the court system.
   
• Non-judicial foreclosures in California, however, do have legal requirements that lenders must follow.  For example, California law requires that lenders for certain mortgage loans made between Jan. 1, 2003, and Dec. 31, 2007, attempt to make contact with borrowers to discuss options for avoiding foreclosure at least 30 days before filing a notice of default.  Lenders also must sign a declaration in the notice of default stating that they tried to contact the borrower, made contact with the borrower, or fall within an exception (such as a bankruptcy filing).
   
• The lenders and servicers that have placed their foreclosure moratorium on properties in the 23 states where courts are involved in the foreclosure process include:  Goldman Sachs Group Inc’s Litton Loan Servicing, Ally Financial Inc.’s GMAC Mortgage unit, JPMorgan Chase, and PNC Financial.
   
• These lenders/servicers have only temporarily halted their foreclosures while they review their foreclosure process.  This is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.
   
• This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government.
   
• Some members have begun to report the immediate impact of this moratorium on transactions that involve foreclosed properties.  Delays in escrow and the removal of listed foreclosures are temporary results of this moratorium.
   
• The immediate impact on the market will be the slowing of home sales, which could put upward pressure on home prices in the short term.  The long-term effect on the market is uncertain at this point as it depends how long the moratorium remains in place.
   
• Assuming the moratorium is lifted in the next month, the flow of REOs to the market should resume, but the uncertainty created by the moratorium may cause hesitation on the part of buyers.
   
• Federal agencies, including the Office of the Comptroller of the Currency, the Federal Housing Administration, and the conservator of Fannie Mae and Freddie Mac, have asked lenders and servicers to review their foreclosure processes.  This review would apply to all states including those like California where the vast majority of foreclosures are non-judicial.
   
• The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete.

...  C.A.R. is supportive of lenders taking action to ensure homeowners are not improperly foreclosed on and that they are following state law.  We hope they are able to conduct their review expeditiously so as to minimize the impact on California’s housing market. ... 

Sincerely,

Steve Goddard
2010 President
CALIFORNIA ASSOCIATION OF REALTORS®

Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

If you don't see an answer to your question in this Post, please feel free to leave your Question in the Comment Section below or email me directly or call my cell.

Even with Foreclosures on a temporary "hold" our economy is not out of hot water yet and there are still more Foreclosures predicted to hit the market in the future due to many different factors, but it is a great time to buy a home if you have some money to put down since prices and interest rates are low!

Call me today regarding your plans for purchasing a home to live in or for an investment property.  And remember to request my FREE DAILY UPDATED FULLY AUTOMATED email, which will be sent directly to your email box whenever a home in the area of your choosing comes on the market For Sale (see example HERE).

Getting you into a home you love is a goal we can accomplish together!

LeeAnn Bell, REALTOR(R)  ...  661-309-2364

LeeAnnRealtor@yahoo.com

DRE License #01260650

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(c) 2010, LeeAnn Bell

Friendly Valley Seniors Community

Do you have a loved one who is ready to move into a Gated Seniors Community?  Or are you 55+ years of age and ready to move into a quieter area?  Would you also love the option of playing golf in your own community?  Or having a Shuttle Bus take you to the nearby shopping areas? 

If you answered YES to any of these questions, then Santa Clarita's Friendly Valley Gated Senior's Community could be just the place for you!

By clicking on this LINK,  you will be taken to my DAILY UPDATED and FULLY AUTOMATED  webpage, showing all homes currently FOR SALE in the Friendly Valley Seniors Community.  (Other detailed information and photos about Friendly Valley can be found HERE).

And an AUTOMATED DAILY UPDATED webpage can be made available right to your email box ... for ANY community in the Santa Clarita Valley.

Just send me an email, at LeeAnnRealtor@yahoo.com requesting your own free DAILY UPDATED FULLY AUTOMATED search.  Please include in your email which tract or city you would like to purchase in, how many bedrooms you desire, the price range, and whether you desire a condo or single family residence.  You will not need to speak to any real estate agent, until you ask to.

Or, of course, you are always welcome to contact me directly to discuss these or other options at:

LeeAnn Bell, REALTOR(R) ... 661-309-2364
or LeeAnnRealtor@yahoo.com

DRE License #01260650

Your success in finding a home you love is my goal!

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(c) 2010 LeeAnn Bell
All Comments Welcome

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What previous clients have to say about working with me:

"Thank you for setting me up on this automated service.  It really is great to see all the homes as they come up for sale"

- John B., Canyon Country

"I love the automated search you send to my email.  It makes finding the right home so easy."

- Diane F., Canyon Country

"You have lots of patience!  You are considerate about feelings, but still have business sense.  Thank you for your help."

- Bob L.

One Valley One Vision - Planning Commission Meeting

Are you concerned with the Growth of the Santa Clarita Valley?  Or are you for more growth?  Want to have your Opinion heard?  The Planning Commission invites you to voice your opinion ... Tuesday, October 5 at 7 pm at the Council Chamber

23920 Valencia Blvd, Valencia, CA

See Article Below

One Valley, One Vision Center Of Tuesday's Planning Commission Meeting

Written by Christopher Glotfelty

Tuesday, 05 October 2010 13:00

Tuesday’s Planning Commission meeting will be the first time Santa Clarita residents can voice their opinion on the draft of One Valley, One Vision. 

The 8,098-page document details the vision for the Santa Clarita Valley for at least the next 20 years. From land use, to air and water quality, to population growth, to potential building and annexation – all is discussed.

Grouped into a hefty General Plan and an even heftier Environmental Impact Report, City planners spent ten years compiling the information for the potential of the City of Santa Clarita and the 53,000 acres of unincorporated Los Angeles County that surround it.

A 90-day public comment period has already begun and will close on December 22.  

OVOV can be read in its entirety online by clicking here; hard copies are available for viewing in the Planning Division at City Hall and at local libraries.  

Tonight’s meeting is just the first in a series that will feature public hearings and presentations in which OVOV will be discussed.  

At the November 16 meeting, a presentation is slated on land use and circulation. The document should reach the City Council by spring 2011.  

Missing from the meeting will be a solution to Seventh Day Adventist Church dispute over its schools. First dealt with in July, the church asked to continue the operation of its K-8 elementary and preschool. At the July meeting, neighbors came forward complaining of noise and trash caused by the school’s students.  

The church has asked that the Commission continue the item to the November 5 meeting as it spends time working with neighbors and reviewing similar schools in the area.  

This will also be newly elected Lisa Eichman’s first meeting as a commissioner. Mayor Pro-tem Marsha McLean appointed Eichman in August.  

The meeting begins tonight at 7 p.m. at City Hall.

Original Article found HERE

Don't think that you are just one person and that your voice doesn't matter.  Canyon Country residents can attest to their power, when they grouped together to get the proposed MRF Dump stopped from being placed on Sierra Highway near Golden Valley in 2008 (see HERE).

By getting involved in issues that arise in Santa Clarita, you can feel that your voice has at least been heard ... whether you are "for" or "against" any issue proposed.  You may even be pleasantly surprised at the outcome.

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Want information regarding home sales in your area?
Looking to purchase in Santa Clarita?

Email 

LeeAnnRealtor@yahoo.com 

and ask for your free "DAILY AUTOMATED SEARCH" which will automatically send photos, prices, and addresses to your email as homes come on the market For Sale ... you won't even have to speak to any real estate agent until you are ready to.

Include the tract or city you are interest in, in the email request,

along with the price range, # of bedrooms, and whether you need a condo or single family residence.

Or as always, 

please feel free to call me directly with any questions or help you may need:
LeeAnn Bell, REALTOR(R) ... 661-309-2364

DRE License #01260650

 LeeAnn Bell with the 2010 California Poppies

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(c) 2010 LeeAnn Bell
all comments/questions welcome

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