Tag: The Caton Team

New Short-Sale Program Offers Relief for Underwater Homeowners…

Please enjoy this article I found interesting….

The Fannie-Freddie program allows short sales for owners who are current on loan payments but are encountering a hardship that could force them into default.

WASHINGTON — Though there are still some snares and drawbacks for participants, one of the federal government’s most important financial relief efforts for underwater homeowners started operating Nov. 1.

It’s a new short-sale program that targets the walking wounded among borrowers emerging from the housing downturn — owners who owe far more on their mortgages than their current home value but have stuck it out for years, resisted the temptation to strategically default and never fell seriously behind on their monthly payments.

Industry estimates put the number of underwater owners across the country at just under 11 million, or 22% of all homes with a mortgage. Of these, about 4.6 million have loans that are owned or securitized by Fannie Mae or Freddie Mac. Eighty percent of these Fannie-Freddie borrowers, in turn, are current on their mortgage payments and meet the baseline eligibility test for the new short-sale effort.

Here’s how the program works and where the potential snares are. Traditionally short sales, where the lender agrees to accept less than the full amount owed and the house is sold to a new purchaser at a discounted price, are associated with extended periods of delinquency by the original owner. The new Fannie-Freddie program — designed by the companies’ overseer, the Federal Housing Finance Agency — breaks with tradition by allowing short sales for owners who are current on their payments but are encountering a hardship that could force them into default.

Say you are deeply underwater on your mortgage and recently lost your job or had your work hours reduced. Under the new program, you can contact your mortgage servicer and ask to participate in a Fannie-Freddie short sale for non-delinquent borrowers. You’ll need to find a qualified buyer for the house, typically with the help of a real estate broker or agent knowledgeable about short sales who will list the property and obtain an offer and communicate the details and documentation to the servicer. If the proposed short-sale package is acceptable, the deal would then proceed to closing weeks — or months — later.

Eligible hardships under the new program run the gamut: job loss or reduction in income; divorce or separation; death of a borrower or another wage earner who helps pay the mortgage; serious illness or disability; employment transfer of 50 miles or greater; natural or man-made disaster; a sudden increase in housing expenses beyond the borrower’s control; a business failure; and a you-name-it category called “other,” meaning a serious financial issue that isn’t one of the above.

Borrowers who take part in the new program can expect to rid themselves of the money-devouring albatross their mortgage has become — without going through the nightmares of foreclosure or bankruptcy — and to get a chance to start anew, better equipped to deal with the financial hardship that caused them to sell their house in the first place.

What about the snares in the program? There are several that participants need to consider.

•Credit score impact. Though officials at the Federal Housing Finance Agency are working on possible solutions with the credit industry, at the moment it appears that borrowers who use the new program may be hit with significant penalties on their FICO credit scores — 150 points or more. This is because under current credit industry practices, short sales are lumped in with foreclosures. According to Laura Arce, a senior policy analyst at the agency, the government is in discussions with the credit industry to institute “a special comment code” for servicers who report the new Fannie-Freddie short sales to the national credit bureaus that would treat participants more fairly on FICO scores.

•Promissory notes and other “contributions.” In the majority of states where lenders can pursue deficiencies, Fannie and Freddie expect borrowers who have assets to either make upfront cash contributions covering some of the loan balance owed or sign a promissory note. This would be in exchange for an official waiver of the debt for credit reporting purposes, potentially producing a more favorable credit score for the sellers.

•Second lien hurdles. The program sets a $6,000 limit on what second lien holders — banks that have extended equity lines of credit or second mortgages on underwater properties — can collect out of the new short sales. Some banks, however, don’t consider this a sufficient amount and may threaten to torpedo sales if they can’t somehow extract more.

By Kenneth R. Harney Distributed by Washington Post Writers Group.

I read this article at: http://articles.latimes.com/print/2012/nov/11/business/la-fi-harney-20121111

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

Factoring in Commuting Costs

Great article I thought I would share…. Though banks and underwriters may not consider this additional cost of community, The Caton Team does. When we sit down with new buyers we talk about where they work and the cost of living in X, Y or Z.  We stopped using the lender approval as our price guideline for house hunting – instead we ask each buyer to determine their true monthly budget.  What they are spending on gas, transportation, utilities, other debt and lifestyle.  We then take the true picture of expenses to determine their comfort level on a mortgage payment and work backwards to find a house that fits that price and other elements.  Enjoy the article….

Factoring in Commuting Costs 

MORTGAGE lenders do not figure in a household’s likely commuting costs when weighing loan applications, but a recent study suggests that borrowers of moderate means would be smart to calculate these costs themselves before buying.

The study, published in October by the Center for Housing Policy and the Center for Neighborhood Technology, looked at transportation and housing costs in the 25 largest metropolitan areas. It found that transportation costs rose faster than incomes in every area over the last decade.

That has added to the financial burden shouldered by moderate-income homeowners, defined as households earning 50 to 100 percent of a metropolitan area’s median income. Transportation consumes 30 percent of their income, on average. Add housing costs to that and the combined cost burden rises to 72 percent.

“The impact is larger for moderate-income households,” said Jeffrey Lubell, the executive director of the Center for Housing Policy in Washington, “because everyone needs to get where they need to go and the fixed costs are the same for everyone. The lower you go down the income stream, the more transportation costs loom as a very big expense.”

The study also found that some metropolitan areas generally considered more affordable than New York become less so after transportation is figured in. For example in Houston, where housing development is more sprawling, transportation consumes 32 percent of income, compared with 22 percent in New York, which has a more robust transit system.

Mortgage underwriters sometimes look at a home’s location relative to where the buyer works, but in most cases a long distance between the two is an issue only if it suggests that the buyer isn’t actually going to live in the house, said W. Thomas Kelly, the president of Investors Home Mortgage, a subsidiary of Investors Bank in Millburn, N.J. Commuting costs vary too much to be figured into qualifying ratios, Mr. Kelly said, adding, “How do I say to a borrower, you don’t qualify because you live too far away from work?”

Scott Bernstein, the president of the Center for Neighborhood Technology in Chicago, argues that transportation costs are quantifiable enough that they ought to be factored into underwriting. And they were, during the first half of the last decade, in an experiment the center conducted jointly with Fannie Mae. Called a “Location-Efficient Mortgage,” the product was a contrasting proposition to the “drive till you qualify” strategy of finding an affordable home. The mortgage compensated borrowers applying to buy in areas with lots of transportation choices, and close to jobs and amenities.

“The bottom line for the borrower was that the location-efficient value would get taken into the underwriting ratio so that it would allow for more borrowing capacity for this income level,” Mr. Bernstein said.

Tested in a handful of markets before 2007, the mortgages were issued to about 2,000 borrowers and, based on the center’s evaluation of a representative sample, showed a very low default rate. But the experiment ended with the mortgage market collapse.

Or, as Mr. Bernstein put it, “The experiment was successful, and the patient died.”

Now the center is working with the Department of Housing and Urban Development on an online affordability calculator that will allow people to look by location at what their likely housing costs, with transportation, would be nationwide.

“Housing counselors can also use it to help coach people on how to pick locations, and it could help developers get a competitive advantage,” Mr. Bernstein said.

The national calculator could be ready by year’s end. Another calculator developed by the center, called Abogo (abogo.cnt.org), lets people plug in an address and find out what a typical household in that area spends on transportation.

By LISA PREVOST

I read this article here: http://www.nytimes.com/2012/11/25/realestate/mortgages-factoring-in-commuting-costs.html?ref=realestate

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

A Cinderella Story – Fredric and Heather

When it came time to sell their first home Fredric and Heather called the Realtor who helped them their first go around – Susan Caton. By then, Susan and I (Sabrina) had partnered up and became The Caton Team.  It was an exciting meeting, sitting around the dinning room table planing for the sale of their home and discussing the hopes, dreams and reality of their next home.
In the competitive Bay Area real estate market a buyer needs to be ready to make a fantastic offer the moment a home pops on the market.  If a buyer has to sell their current home – writing an offer contingent on the sale of a home is not as attractive to the seller as a non-contingent offer.  Therefore, we agreed that the best course of action was to sell their current home to be prepared to pounce when their next home came on the market.
This can be a scary moment – where will the family live if we don’t find the next home.  Nonetheless, the hunt for their next home began way before the for sale sign showed up in their front yard.
So Heather and Fredric did a fantastic job getting their home ready for sale.  Before our first open house The Caton Team had wind of interested parties.  Within a week their home was in contract.  Oh my!
So the serious house hunting hits.  We’re out day and night checking out everything on the market, new and old…and we start writing offers.  Good offers, solid offers.  But we keep getting out bid, sometimes by all cash, sometimes just larger down payments or out of the the ballpark offers.  Regardless, the sweat starts beading.  Now we’re talking short term rentals as the close of escrow on their current home slowly approaches….and we are very thankful for the 30-days of rent back we negotiated to give us a little more time.  That was extremely helpful, but not enough.  So, a short term rental was located.  More offers.  Out bid.
Suddenly there is buzz around a certain Silicon Valley IPO.  The weeks leading up caused a mini boom on the peninsula.  Offer dates, multiple offers, no contingencies, all cash – you name it – things were a bit nuts.  Then the dust settled, and as a boom of new listings flooded the market a week old listing was suddenly overlooked.  We wrote an offer.  Out of the blue, another offer comes in.  This house was awesome.  We couldn’t let it get away.  Proud to say our reputation preceded us and the Selling Agents knew we’d get the job done – when it came down the the nitty gritty, we helped our friends and clients prepare a terrific offer package and in the end their offer was accepted.
The phone call to your clients when you get to share the good news that they got the home of their dreams – well, it’s one of the best phone calls around.
Thank you Fredric and Heather for trusting The Caton Team with all your real estate needs.  Here’s to many happy years in your new home.
Got Questions? – The Caton Team is here to help.
Email Sabrina & Susan at:  Info@TheCatonTeam.com
Visit our Website at:   http://thecatonteam.com/
Please enjoy my personal journey through homeownership at:
Thanks for reading – Sabrina

Warren Buffet is our New Boss!!!! Press Release!!!!

PRESS RELEASE !!!!!

Prudential, Real Living brands to be Berkshire Hathaway HomeServices

Brookfield Asset Management remains a partner in new brand

BY INMAN NEWS, TUESDAY, OCTOBER 30, 2012.

The nation’s second-biggest real estate broker, Berkshire Hathaway Inc. affiliate HomeServices of America Inc., has entered the franchising business by acquiring a majority interest in the Prudential Real Estate and Real Living brands from Brookfield Asset Management.

The Prudential Real Estate and Real Living affiliate networks will be rolled into a new franchise brand, Berkshire Hathaway HomeServices, that will come online in 2013, the companies said.

HomeServices and Brookfield have formed a joint venture, HSF Affiliates LLC, to operate the Real Living and Prudential Real Estate affiliate networks, whose member brokers employ 53,000 sales associates and closed more than $72 billion in home sales last year.

HomeServices is the majority owner of HSF Affiliates, with Brookfield Asset Management retaining joint ownership. Brookfield’s relocation business, Brookfield Global Relocation Services, will remain wholly owned by Brookfield. Terms of the deal were not disclosed.

“Berkshire Hathaway HomeServices is a new franchise brand built upon the financial strength and leadership of Brookfield and HomeServices,” said Warren Buffett, chairman and CEO of Berkshire Hathaway Inc., in a statement. “I am confident that these partners will deliver value to the residential real estate industry, and I am pleased to have Berkshire Hathaway be a part of the new brand.”

Ron Peltier, chairman and CEO of  HomeServices, said the company was “honored and proud to be entrusted with the use of the Berkshire Hathaway name as our new real estate franchise brand.”

Berkshire Hathaway HomeServices will be based in Irvine, Calif., and led by Earl Lee, who will serve as chief executive officer. Other key management executives named today are Chief Operating Officer Stephen Phillips, Chief Financial Officer Brian Peterson, and Chief Marketing Officer Aleya Chattopadhyay.

Lee has worked under the Prudential brand since his Hawaii-based company, Locations LLC, joined the Prudential network in 1995. He was president of Prudential Real Estate and Relocation Services when it was acquired by Brookfield Residential Property Services for $110 million last year.

Real Living founder and president Harley Rouda Jr. will take over as CEO of Trident Holdings Inc., the parent company of Ohio-based HER Realty Real Living. Rouda said HER Realty does not plan to be affiliated with Real Living or Prudential Real Estate.

Canadian-based Brookfield entered the U.S. market in 2008, by acquiring GMAC Real Estate and merging the company into Real Living the following year.

Phillips served as executive vice president and chief operating officer for GMAC Home Services from 2001 to 2006, and as interim CEO of the GMAC Relocation Services business. Peterson has 24 years of experience in the real estate brokerage and franchising business, including 14 years with Brookfield and GMAC. Chattopadhyay has been with Brookfield since 2003, holding roles in Canada, India and the U.K.

Peltier said that while Minneapolis-based HomeServices is getting into the franchising business to accelerate its growth and build a website that will be a destination for consumers, the company will continue to expand its company-owned brokerage operations.

“The business model we have used to grow for the last 15 years was to identify great companies, regardless of their brand, and own and operate those local companies,” Peltier said. 

Since HomeServices was acquired in 1998 by Berkshire Hathaway subsidiary MidAmerican Energy Holdings Corp., the “independent brand” acquisition strategy has helped the company grow from 4,000 agents in three markets to more than 16,000 agents in 21 states who last year handled sales of homes valued at nearly $32 billion.

Peltier said that while HomeServices will continue to identify brokerages to acquire, own and operate, “being a franchisor, we’ll be in a lot of markets much quicker than (with the) existing strategy” alone.

With consumers typically starting their home search on the Internet, creating a single destination website under the Berkshire Hathaway HomeServices brand will benefit both company-owned brokerages and franchisees, Peltier said.

“At some point, you can’t ignore the fact that if you want to attract customer eyeballs, you have to have a presence on the Internet, and you can’t do it with local independent brands” alone, Peltier said. “You have to have a single brand.”

Company-owned brokerages that operate under independent brands will continue to have the option of pursuing that strategy, while still benefiting from the exposure they will receive from the Berkshire Hathaway HomeServices website, he said.

“We will continue to grow and support the independent brand strategy as well,” Peltier said. “We’re adding to our strategy — this is not deleting.”

HomeServices of America’s business model now looks more like the one employed by competitor Realogy Holdings Corp. Although Realogy operates the nation’s largest brokerage company, NRT LLC, most of the company’s 2011 adjusted net earnings came from providing real estate franchise services to companies operating 13,800 offices under the Century 21, Coldwell Banker, ERA, Sotheby’s International Realty, Coldwell Banker Commercial, and Better Homes and Gardens Real Estate brands.

HomeServices owns nine brokerages affiliated with Prudential Real Estate, including three acquired this year: Portland, Ore.-based Prudential Northwest Properties, acquired in February; Seattle-based Prudential Northwest Realty Associates, acquired in April; Prudential Connecticut Realty, also acquired in April.

The six other HomeServices brokerages affiliated with Prudential Real Estate are and Prudential California Realty (Southern California), Prudential First Realty (Iowa), Prudential Rhode Island Realty, Prudential Carolinas Realty, Prudential York Simpson Underwood Realty (North Carolina) and Prudential Yost and Little Realty (North Carolina).

HomeServices also owns Koenig & Strey Real Living, a dominant brokerage in the metro Chicago area, which it acquired from Brookfield in 2009.

“This is not a new thought,” Peltier said of the decision to create a national franchise brand, noting that HomeServices was interested in acquiring the Prudential Real Estate brand two years ago. 

When Brookfield acquired the brand instead, it did so knowing it would eventually have to transition to another name — parent company Prudential Financial Inc. made that a condition of the sale.

“They were looking for a great brand, and we were fortunate in that we’d been given permission by our parent” company to use the Berkshire Hathaway name to create a new brand, Peltier said. It’s “an internationally recognized brand that’s currently not being used in commerce.”

According to an amended registration statement Prudential Real Estate Affiliates filed on Jan. 19 with the Minnesota Department of Commerce, Brookfield was barred from signing up new franchisees to operate under the Prudential Real Estate name. Brookfield had the right to renew the right of existing franchisees to operate under the Prudential name for up to five years, but only if their franchise agreements expired on or before Dec. 6, 2013.

All rights to use the Prudential Real Estate name expired at the end of 2027 — when the franchise agreement with the longest term was set to expire — or on the date on which no franchise agreement is in effect, the registration statement said.

Brian Boero, a partner in the real estate technology consulting firm 1000watt, said in a blog post today that while many existing Prudential affiliates “are deeply invested” in the brand, “I think most will jump at the opportunity to associate with Berkshire Hathaway. I’ve heard from some already, and they’re enthused. A conversion process that could have taken a decade will be collapsed into months.”

In filing its updated registration statement with Minnesota regulators, Prudential Real Estate also disclosed recent litigation with several franchisees.

Last year, Prudential Real Estate said it received $1.9 million from Mason McDuffie Real Estate Inc. to settle a breach of contract lawsuit Prudential Real Estate filed against the Pleasanton, Calif.-based brokerage after it switched its franchise affiliation to Better Homes and Gardens Real Estate.

Prudential Real Estate also disclosed that it had received settlement payments in 2011 from Prudential Texas Properties and Missouri-based brokerage Carter Duffey Inc.

I read this article at: http://www.inman.com/news/2012/10/30/prudential-real-living-brands-be-berkshire-hathaway-homeservices

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

A Cinderella Story – Michael and Tatjana… A Picture is Worth a Thousand Words

When Michael and Tatjana reached out to The Caton Team – we were very excited to be their Realtors for their first home purchase.  We got them preapproved with Melanie Flynn of First Priority Financial and hit the ground running.  They were so excited, started checking out properties and sooner than later, we began to write some offers.

With fingers crossed and prayers whispered we waited on pins and needles to hear back on their first offer… they didn’t get it.  The first time you lose a house – it’s the pits.  The second and third time it doesn’t get any easier.  Tatjana and Michael started to lose hope.  Who wouldn’t?

But The Caton Team wouldn’t let them lose out on their dream.  As full time Realtors, we’ve spent countless sleepless nights hoping and praying our client’s dreams come true.  We knew – you have to get back on the horse, try, try again….there are other fish in the sea.

And they did – but they had one request.  They no longer wanted to write a letter to the seller that included their adorable family photo.  In shock, I asked why.  They were adamant – ‘what’s the point?  The seller is looking for the most money and highest offer.’  I smiled.  We could hear the disappointment in their voice.  But we had faith.  We couldn’t change what we were doing.  The offer package The Caton Team prepares for each offer is thorough and it is successful.  Sometimes money talks.  But sometimes, it’s the other items in the offer package that get the recognition.

As we waited to hear back on their offer I was looking at the copy of the photo we sent of their family.  I’ve known Tatjana since the 6th grade and here she was, with her husband and two beautiful sons…  The phone rang, couldn’t get to it fast enough.  It was the seller’s agent.  I could hear the happiness in her hello.  They got the house.  Quickly she interjected – it wasn’t about being the highest price, they weren’t.  It was about the letter and the picture.  (It still brings tears to my eyes.)  Turns out the owner was deceased and had charged her best friend with handling her estate.  Her wish was for her home to be sold to a nice family – not an investor.  She had built that home from the ground up, raised her family there, and she wanted her best friend to pick the sweetest family for her home.  And boy they couldn’t have found a better family.

Sometimes it really isn’t just about the money.

Congratulations to Michael and Tatjana – to many happy years and memories in your new home!

 

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

Popcorn Ceilings – No Night At The Movies…

Please enjoy my candid journey through homeownership at http://ajourneythroughhomeownership.wordpress.com where I share my personal stories of being a young homeowner.  My newest blog is about Pop Corn Ceilings… Enjoy!

Thanks for reading – Sabrina

San Mateo County Homebuyer Assistance Program

Music to my ears.  Just came across this program to help homebuyers living and working in San Mateo County.  Please visit their website for updates.

Homebuyer Loans

Downpayment assistance loans for first-time homebuyers
in San Mateo County

Together with Meriwest Mortgage, HEART has created a customized loan package that is not offered by any other lender. Our goal is simple: to help you buy a home with a 5% downpayment.

Working with Meriwest Mortgage, a wholly owned subsidiary of the not-for-profit Meriwest Credit Union, HEART has created an entirely new loan package that helps qualified moderate-income families earning not more than $150,000 and who have not owned a home in San Mateo County in the last 3 years and meet other qualifications, buy their first home in San Mateo County, or to move substantially closer to transit in the county. This program does not apply in Daly City.

* Guidelines current as of July 2012. Subject to change based on rapidly changing market conditions. Check back often for updates, or call John Souza at Meriwest Mortgage at (408) 849-7115.

How does the Opening Doors Program work?

Together with a Meriwest Mortgage first home mortgage loan, HEART of San Mateo County offers a below-market rate second loan up to $78,225 to help facilitate a home purchase with a minimum of 5% downpayment. This program does not apply in Daly City. You may purchase a home or condo anywhere else in San Mateo County.

Based on the maximum sales price of $521,250, with a conforming first mortgage amount limit of $417,000, the maximum 2nd mortgage loan is  up to $78,225. Borrowers can put more money down on a home purchase above the $521,250 limit, however, the first and second mortgages remain at the previously described limits.

The 2nd mortgage allows for an 80% loan to value ratio on the first mortgage. The purchaser is not required to buy private mortgage insurance (PMI) for this loan. This results in significant savings to the homeowner of thousands of dollars in annual mortgage insurance premiums.

The Meriwest Mortgage first loan products that will be available for this special program are:

a 30-year fixed rate

a 5/1 adjustable rate mortgage (ARM) 30-year full amortizing

and a 5/1 ARM adjustable 40-year loan fully amortizing.

In combination, these loans reduce the monthly payment to the homeowner. Note the maximum loan is subject to change depending on market conditions. The first mortgage may be up to 80% Loan to Value.

Who Qualifies?

In order to qualify for this loan, you must meet a few specific requirements. There aren’t many of them, but they are important, and you must be able to prove that you meet each and every one of them. Please review the list below and check those to which you can answer “yes.”
Guidelines current as of July 2012. Subject to change based on rapidly changing market conditions. Check back for updates, or call John Souza at Meriwest Mortgage at (408) 849-7115.

Do you and your family earn $150,000 or less each year?

Do all borrowers have good credit – FICO score 680 or higher?

Is the purchase price of the property you want to buy $521,250 or less?

Do you currently live or work in San Mateo County? If you live or work in Daly City, you may apply for this program, but you cannot purchase a home or condo in Daly City.

Is the home you are purchasing in San Mateo County? This program does not apply in Daly City.

Have you NOT owned a home during the past 36 months, OR, if you have, will you be selling your current home and buying one that is substantially closer to transit in San Mateo County?

Will the total household debt to income ratio be less than 45%?

Will you be able to make a down payment of 5% of the purchase price?

Will you be able to demonstrate continuous employment for 24 months prior to application?

Do you have 5% downpayment available?

If you answered yes to these questions, you may qualify for Opening Doors. To begin the application process and find out for certain if this program is right for you, click on the APPLY NOW button. You will be taken to the website of Meriwest Mortgage, a subsidiary of Meriwest Credit Union, and you will be asked to begin an application for a mortgage loan

Click Here to Apply

If you have problems accessing the site, have questions, or need further information, please call HEART at (650) 872-4444 ext. 4#, or email pstinson@heartofsmc.org.

FAQ

Q: What do I do if I have more questions?

A: You can download a full set of Frequently Asked Questions here

Q: What are the interest rates?

A:  Please call John Souza at Meriwest Mortgage, 408-849-7115 for today’s rates.

Q: How is the program funded?

A: HEART’s donations from local employers fund the program. HEART continues to raise funds to enable this program to grow and serve even more local employees. Please click on the Donate Now button to make a gift, or contact Paula Stinson at (650) 872-4444, ext. 4#, pstinson@heartofsmc.org Thank you!

I read this article at: http://www.heartofsmc.org/programs/homebuyer-assistance/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

Home Prices Rebound According to CNN Money – enjoy this shared article…

Home prices rebound

By Chris Isidore CNNMoney

NEW YORK (CNNMoney) — In another sign of a turnaround in the long-battered real estate market, average home prices rebounded in July to the same level as they were nine years ago.

According to the closely watched S&P/Case-Shiller national home price index, which covers more than 80% of the housing market in the United States, the typical home price in July rose 1.6% compared to the previous month.

It marked the third straight month that prices in all 20 major markets followed by the index improved, and it would have been the fourth straight month of improvement across the full spectrum if not for a slight decline in Detroit in April.

The index was up 1.2% compared to a year earlier, an improvement from the year-over-year change reported for June. While home prices have been showing a sequential change in recent months, it wasn’t until June that prices were higher than a year earlier.

The July reading matched levels last seen in summer 2003, when the market was marching toward its peak in 2006. The collapse of the market after that led to the financial crisis of 2008.

“The news on home prices in this report confirm recent good news about housing,” said David Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Single-family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing.”

Record low mortgage rates and a tighter supply of homes available for sale have helped to lift home prices. Lower unemployment also has helped with home prices, although job growth in recent months has been slower than hoped.

Earlier this month, the Federal Reserve announced it would buy $40 billion in mortgage bonds a month for the foreseeable future. This third round of asset purchases by the central bank, popularly known as QE3, is its effort to jump start the economy through even lower home loan rates.

Related: Best home deals in Best Places

Mike Larson, real estate analyst with Weiss Research, said part of the improvement in the housing market is due to investors using the low mortgage rates to buy up homes that are in foreclosure and renting them in a strong rental market.

But he said that he doesn’t think there’s much chance of housing prices forming any kind of new bubble in the foreseeable future.

“Clearly the worst is behind us for this market., but this is not a market that is going to take off again,” he said. “While you have a firming up, you still have tight lending standards and people who have been burned are reluctant or unable to get back in the market.” He predicts it will take several more years before housing prices can gain more than 1% to 2% a year.

Related: Buy or rent? 10 major cities

But that is good news for a housing market that was plagued by plunging home values and high foreclosure rates for much of the last six years. And the good news has the potential to build on itself, said Joseph LaVorgna, chief U.S. economist for Deutsche Bank.

“Housing remains a rare bright spot in an economy that is otherwise muddling through,” he wrote in a note to clients Tuesday. “The price trend for housing is significant, because it provides economic stimulus via stronger household balance sheets.”

Correction: An earlier version of this article incorrectly reported that home prices had reached a 9-year high. In fact, they rebounded to the level last seen in summer 2003, before their peak several years later.

Curious about the local real estate market on the San Francisco Peninsula?  Email me! 

I read this article at: http://money.cnn.com/2012/09/25/real_estate/home-prices/index.html?source=linkedin

Got Questions? – The Caton Team is here to help.

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Please enjoy my personal journey through homeownership at:

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Thanks for reading – Sabrina

Susan Caton – of The Caton Team Realtors – Interviewed by the Daily Journal – Article by Sally Schilling

Please enjoy this article below, my partner and mother-in-law, Susan Caton was interviewed by Sally Schilling of the Daily Journal regarding the local San Francisco Peninsula Real Estate market.

First-Time Home Buyers Beat Out By Cash

By Sally Schilling – Daily Journal Correspondent 9.17.12 5am

Low interest rates and low housing prices have first-time buyers feeling optimistic about purchasing a good home. But people who have saved up enough money for a sizable down payment are finding they are still not in the most favorable position in the housing market.

Cash buyers are often beating out first-time home buyers who are taking out loans.

“They’re being beat out, but not necessarily priced out,” said Anne Oliva, president of the San Mateo County Association of Realtors. Sometimes, cash buyers get preference over buyers with home loans, even if their cash bid is lower, she said.

Traditional home buyers with a 20 percent down payment are struggling, said Oliva, who is currently working with a couple for whom she has put in nine different offers. Her clients have enough for a 20 percent down payment, but sellers are thinking it is better to go with the cash buyer for the sure deal.

The challenge may be even greater for first-time buyers of units in complexes, such as condominiums or apartments. Investors are buying up units with cash and turning them into rentals, said Oliva.

First-time buyers with a 3.5 percent down payment on a condo, for example, may get pre-approved for the loans and have their offer accepted. But they could lose final approval of the loan once the lender sees that the complex has a high number of rentals.

“Every lender looks at the renter-to-owner ratio,” said Oliva, who ran a program for first-time home buyers in San Bruno. “If the renter-to-owner ratio is high, they will not lend.”

While she understands that buying and renting condos is a good move for investors, Oliva worries about how this trend will affect the number of homeowners.

“We could have a huge problem with increasing homeownership if this keeps happening,” she said.

Abundance of cash

“There’s a lot of cash out there,” said Susan Caton, a Realtor based in Redwood City. “It’s amazing, even over $1 million there’s a lot of cash.”

Caton worked with a client who was outbid several times on homes priced at more than $900,000. “They kept getting beat out, and beat out,” she said.

One home priced at more than $1 million in San Francisco had 25 offers on it. A client offered with 60 percent to 70 percent down and had excellent credit. They were beat out by an all-cash offer that was less than asking price.

The all-cash offer closed in nine days, whereas the client’s offer which would have closed in 30 days.

“In San Mateo County, it’s the same thing,” she said. “With 40 or 50 percent down or better, you are still beat out by cash offers.”

Caton agreed that the low housing inventory is a big part of the problem, along with the conditions that come with first-time home buyers with loans.

“Fifty percent down is a darn good offer and a good loan,” she said. “But the sellers or agents are saying ‘take the cash, it’s a sure thing,’ especially with no financing or property conditions.”

Many home buyers do get discouraged.

“It’s a hard battle,” said Caton. “It takes a lot of patience, but they can’t give up.”

But she sees a silver lining in the dark cloud.

“In each instance when a buyer is beat out a number of times, when they finally get a house they are so happy they got the one they got,” she said.

Strings attached

There are many reasons for sellers to prefer all-cash offers from prospectors over a down payment from a home buyer with a loan. Many strings are attached to a deal with a first-time home buyer; the sale may take longer to close, an appraisal is needed and sometimes sellers are required to do repairs. And on the other hand, a cash offer may have no conditions.

“If you’re up against cash offers, it’s very difficult,” said Diane Viviani, a longtime real estate agent in San Mateo County.

The cash-buyer trend is especially apparent in the $500,000 to $700,000 range, where inventory is low, said Viviani.

Recently, a home on Oneill Drive in San Mateo had 30 offers on it, she said. The listing price was $525,000 and it sold for $675,000, after being on the market for just eight days.

“I’ll tell a buyer to make the best offer you can,” she said.

For those taking out Federal Housing Administration loans, the down payment only needs to be 3 percent, said Viviani. But with such a low down payment, the lender’s liability is higher and the buyer seems less attractive.

“It’s doable,” said Viviani of FHA loans. “But when something comes at or below market [price], they’re seeing them go [to cash buyers].”

Fading trend

Joe Rodden, a longtime real estate broker based in Redwood City, has seen this trend. A home on 18th Avenue was recently sold to a cash buyer, despite the offer being 5 percent less than the other offers from people taking out loans, said Rodden.

“[The seller] felt more comfortable taking cash because it was a sure thing,” he said.

When asked what happens to the houses after they are bought with cash, Rodden said this is up to the buyer. Cash buyers could potentially close a deal with cash and then take out a loan, but the contract would still say all cash.

The cash trend has become less common in the past couple of months because prices have bumped up, said Rodden.

“Now cash buyers don’t see the same bargain,” he said.

I read this article at:

http://smdailyjournal.com/article_preview.php?id=1754902&title=First-time

Sabrina’s 2 cents…

Reading this article, it is clear – the local San Francisco Bay Area Real Estate market is highly competitive – so really nothing has changed.  We live in one of the greatest places on earth!

Though the focus of this article made it clear how tough it can be – The Caton Team has seen the light at the end of the tunnel.  After our clients experience writing multiple offers and being out bid – we reevaluate the situation and get back into the market.  I’m happy to say in the end, we find the right home for the right client.  Each experience is different though… thus our ‘Cinderella Story’ blog entires.  ENJOY!

A Cinderella Story… Lisa and All Those Offers…. at:

https://therealestatebeat.wordpress.com/2012/07/02/a-cinderella-story-lisa-and-all-those-offers/

A Cinderella Story… Jake  and Sophia…. at:

https://therealestatebeat.wordpress.com/2011/09/09/a-cinderella-story-part-2-jake-sophia/

A Cinderella Story…Nisi and Rip… at:

https://therealestatebeat.wordpress.com/2011/08/15/a-cinderella-story-part-1/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

Offer Subject to Inspection – What Does That Mean?

As a Realtor I have a whole dictionary for just real estate jargon.  One of the most confusing terms, and often buyers will get the wrong idea about their agent, is “offer subject to inspection.”  So allow me a moment to explain what on earth this means.

“Offer subject to inspection” is a typical hurdle for buyers to overcome when shopping for homes that are tenant occupied.  The term means – the buyer can physically go in and SEE the home AFTER an offer is accepted.  Sounds a little backwards right?

And no – your agent is NOT trying to strong arm you and force you to buy a home without evening seeing it!

Generally this clause is for homes which are tenant occupied.  In order to preserve the rights of the tenant to have the quite enjoyment of their home – the tenant has the right to refuse prospective buyers to come in and see the home.  That is – until an offer is accepted by the seller, then the buyers has the right to inspect the home.

How does this work you ask?  The buyer must write a REAL offer since the terms are binding once accepted.  When the seller accepts the offer, the buyer will have a certain amount of days which is written into the contract to actually go in and see the home for the first time.  If the home is to their liking and the buyer wants to proceed with the contract – they do.  If the home is NOT to the buyers liking – for just about any reason – during the agreed upon days – the buyer will have the right to cancel the deal and walk away without any harm to both buyer and seller.

So you found a home you like – how do you write an offer?  If there are inspections available before hand – it makes our job of writing the offer a bit easier since we have a good idea of what the condition is.  If there are no inspections, and we haven’t seen the home, we drive by and gather as much info as we can with our eyes from the safety of the car.  We write the offer as best we can with the information provided and once the buyer has seen the home and had inspections we proceed with the new information – either by moving forward or discussing the new information with all parties and find a common and suitable outcome for all parties.

As strange as it seems – it happens more than you know.  For some buyers, they cannot imagine writing an offer for a home without ever seeing the home.  For investment buyers, this very typical and generally have no issues writing up a fair offer to get in.  Of course, what happens after a buyer gets to see the home is a far different story.  I have experienced both follow throughs on the contract and recessions – so truly we cross that bridge together when we get to it.

Which is truly at the root of what us Realtors do.  We are the buyers and sellers guides through Real Estate – what can The Caton Team do for you?

Got Questions? – The Caton Team is here to help.  Email us at:

Info@TheCatonTeam.com

Visit our website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp me at: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com