Author Archives: snegri

About snegri

I am a Realtor with Lyon Real Estate in Roseville, CA.

Apple Hill Calendar of Events 2012

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It’s that time to head up to Apple Hill again, so I wanted to share the 2012 calendar of events!

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HAFA Changes You Might Not Know About

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As of June 1, 2012 the Treasury Department announced the following changes to the HAFA Program (Home Affordability Foreclosure Alternative):

  • The program has been extended to December 31, 2013.  The short sale can be initiated up until this time as long as the closing date happens on or before September 30, 2014.
  • Previously only owner occupied properties where eligible.  Now they have extended the program to non-owner occupied properties which include rentals, second homes and vacant properties.  However, the property cannot be owned or secured by a business entity.
  • HAFA relocation assistance of $3,000 will be paid to the primary resident whether it be the borrower or tenant providing that the property be vacated upon closing of the transaction.  Vacant properties do not qualify for HAFA relocation assistance.
  • If HAFA relocation assistance is provided, the HUD must be reflected appropriately.
  • If there is a tenant living on the property, it is the borrowers responsibility to ensure the property is vacated by close of escrow.

For more information on HAFA guidelines, go to:  http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/hafa.aspx.  Or feel free to contact me, and I would be glad to answer any questions.

Sheri Negri
Better Homes & Gardens Real Estate
Sheri@LoveForHomesSac.com

It’s a Good Time to Sell!

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Believe it or not, this really is a good time to sell.  The inventory is at record lows in the Sacramento area.  There are more buyers than homes on the market, so homes are going very quickly.  I am seeing 10 to 20 offers on homes within the first few days of the listing date.   You might think this is only true for homes price at or below $300,000, but this is NOT the case.  My partner and I had a listing in Roseville recently.  The home was listed at $555,000.  At the end of day two we had 20 offers, so we had to tell the buyers agents that we were not accepting any more offers.  When we asked for everyone’s best and final offer, we received counters back at a higher offer price even though they may have already been above list price in the original offer!  This home was not even a traditional sale, it was a short sale.  Another agent in our office had the same thing happen recently with his listing in Loomis which was priced in the low $700,000’s.

If you have been contemplating selling your home, this is a great time to go for it.  I am not sure how long this window of opporotunity will exist.

Feel free to contact me with any questions.  I would be happy to provide you with a complimentary Compartive Market Analysis on your home.

Sheri Negri
Better Homes & Gardens Real Estate
925 Highland Pointe Drive #140
Roseville, CA 95678
(916) 606-3210

Sheri@LoveForHomesSac.com

But I Thought It’s a Buyers Market

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Although there are unbelievers out there, we really are in a seller’s market right now with below-average level of for-sale inventory.  There are more buyers out there than properties, so we realtors are all showing the same homes and competing with one another.  I am seeing anywhere from 8 to 15 offer come in within days of the listing.  As a buyer it is important to ensure your agent is showing you property as soon as it’s listed so that you do not miss out on any opportunities to put in an offer on a home.

Educating our buyers becomes extremely important in a seller’s market.  Most homes are priced aggressivley to sell (mainly distressed properties), so putting in an offer at list price isn’t going to get you the home.  In most cases buyers will need to offer above list price to get the home (especially if they are asking for concessions).   If buyers need 3% credit for reoccurring and nonreoccuring closing costs, the offer should include at least 3% higher than list price and even more to be the winning offer.  Of course, comps will need to support the offer amount for appraisal purposes.

Sheri Negri
Better Homes & Gardens Real Estate
925 Highland Pointe Drive #140
Roseville, CA 95678
(916) 606-3210
Sheri@LoveForHomesSac.com

Significant FHA Loan Changes in April 2012

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Over the past few years FHA has increased their premiums to cope with mounting losses to their mortgage insurance fund; starting April 1st 2012 they’re at it again. If you go into contract on or after April 1st 2012 the upfront mortgage insurance premium will increase from the current 1% to 1.75%; on a $300,000 loan that’s additional $2250.

The monthly mortgage insurance will also increase 10 basis points.  On a $300,000 loan with a 30yr fixed FHA loan with a 3.5% down payment the monthly premium will jump from 115 basis points or $287.50/month to 125 basis points or $312.50/month; an increase of $25/month.

On loans over $625,500, for all case numbers assigned on or after June 1st 2012, the monthly premium will increase 25 basis points to 140; on a $700,000 loan that’s an increase of $145.84/month.

This change will encourage more potential homebuyers to look into traditional conventional financing with 5% down and lower overall costs.

Can the 2nd Lien Holder Come After Me for Money Owed in California?

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The question I hear a lot is “Can the 2nd lien holder come after me for the balance owed?”.  The answer is “YES” in certain situations.  Let me explain.  In a foreclosure situation, the lender can most definitely come after you if your lien is consider “recourse” debt vs. “non-recourse” debt.  The essential difference between a recourse and non-recourse loan has to do with which assets a lender can go after if a borrower fails to repay a loan. As a  matter of principle, borrowers almost always favor non-recourse  loans, while lenders almost always favor recourse loans.  In both  types of loans, the lender is allowed to seize any assets that were used  as collateral to secure the loan.  In most cases, the collateral is the asset that  was purchased by the loan.  For example, in both recourse and non-recourse  mortgages, the lender would be able to seize and sell the house to pay off the  loan if the borrower defaults.

The difference comes if money is still owed after the collateral is seized and sold.  In a “recourse” loan, the  lender can go after the borrower’s other assets or sue to  have his or her wages garnished.  In a non-recourse mortgage, however, the lender is out of luck. If the asset  does not sell for at least what the borrower owes, the  lender must absorb the difference and walk away.  You may also her the term “money purchase loan”.  This is the same as “non-recourse” debt.  This means this is the money you used to purchase the home.  If you refinanced or have a home equity line, these loans are considered “recourse” debt.

I am starting to hear from a number of colleagues that their clients are getting letters in the mail from collectors asking to begin payment of their “recourse” debt several years after a foreclosure.  I think we will start seeing a lot more of this which is why it is extremely important to understand your options with a foreclosure vs. a short sale.

Senate Bill 458 (SB458) was passed in July of last year (2011) prohibiting lenders from a deficiency judgement against the first or second lien holders regardless of whether or not the debt is considered a “recourse” debt.  This is a huge win for homeowners who can no longer pay their mortgage and have no other options.

For anyone considering letting their home go to foreclosure vs. a short sale, I strongly urge you to consult with an attorney and CPA.  I would be glad to give recommendations if you live in the Sacramento area.

Sheri Negri
Lyon Real Estate
Serving the Greater Sacramento Area
Sheri@LoveForHomesSac.com