FED DECISION SHAKES THINGS UP; HOW WILL THIS AFFECT YOU?

This just came in from one of our preferred lenders, Paula Clark at Wells Fargo Home Mortgage: Last week at the Fed’s regularly scheduled Federal Open Market Committee meeting, some major decisions were made that will ultimately impact mortgage rates. But just what did they decide...and what do their decisions mean for home loan rates?

The Fed said they are going to ration out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. There was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and last week's statement is the Fed's nice way of saying "no." They will not be buying more in quantity, but what they will do is attempt to provide a smoother transition to normal market conditions.

It is a given that once the Fed ceases its purchases, that interest rates will climb significantly higher...most likely back above the 6% area. So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise. This means that waiting to purchase or refinance will very likely mean a higher interest rate.

Their decision also means that the Fed's remaining purchases will all be lower in quantity, as the remaining allotment for purchases will be spread over a longer period of time - and additionally, will not necessarily be spread out as evenly as their past purchases - which could lead to more volatility for rates in the near term.

In other news, Existing Home Sales and New Home Sales were reported slightly less than expected, but both reports continue to show signs of an improving housing market. The inventory of unsold existing homes fell to its lowest inventory level since April 2007, while the inventory of unsold new homes dropped to its lowest level since January 2007. While some of the decline in new home inventory may be due to builders constructing fewer homes - these reports indicate that the housing market is indeed showing signs of life.

Remember, with home loan rates still low - but slated to increase with the Fed's recent decision - as well as a juicy tax credit for First Time Home Buyers that is going to expire on November 30th, it makes sense to get off the fence if you've been considering a purchase or refinance. For sensible home advise, you can contact Paula Clark directly at tel. (702) 868-3920, cell (702) 277-3554, or email her at paula.L.clark@wellsfargo.com.

65 DAYS REMAINING FOR THE $8,000 FIRST TIME HOMEBUYER'S TAX CREDIT

Time is fast running out for the $8,000 First Time Homebuyer's Tax Credit, which expires on November 30, 2009. It has NOT been extended as of today. You must close escrow by this date to be eligible for the tax credit. Given today’s market conditions, you should allow 30- 45 days to close escrow. This means you want to be in contract by October 15, 2009.

That’s only 20 days to find a house.

Another positive factor to consider buying now is the very affordable interest rates. See below for the most up-to-date mortgage rates, courtesy of one our preferred lenders Aaron Gordon from Bank of America Home Loans. Aaron is reminding those who are seriously considering buying a house that the conditions are in your favor. Interest rates are steady, and rates remain at a three-month low. The Fed has slowed the purchase of mortgages amid signs of an improving economy. Fifteen-year mortgages are at their lowest since 1991.

Here’s a round-up of today’s rates (subject to change until locked):

4.875% (APR 5.129) FOR A 30 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 1.125 points, NO ORIGINATION FEE!

4.250% (APR 4.626) FOR A 15 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 0.750 points, NO ORIGINATION FEE!

4.875% (APR 5.139) FOR A 30 YR FHA / VA LOAN, WITH 1.250 POINTS, NO ORIGINATION FEE!

4.250% (APR 4.682) FOR A 15 YR FHA / VA LOAN, WITH 1.125 POINTS, NO ORIGINATION FEE!

5.500% (APR 5.763) ON A 30 YR JUMBO LOAN OVER $417,000 with 1.125 POINTS, NO ORIGINATION FEE!

5.000% (APR 5.244 ) ON A 5 YR JUMBO ARM OVER $417,000 with 1.000 POINT, NO ORIGINATION FEE!

5.875% (APR 6.133) ON A 30 YR INVESTOR (NON-OWNER OCCUPIED) LOAN UNDER $417,000 WITH 20% DOWN with 1.000 POINTS, NO ORIGINATION FEE (720 mid score)!

5.375% (APR 5.603 ) ON A 30 YR INVESTOR LOAN (NON-OWNER OCCUPIED) UNDER $417,000 WITH 25% DOWN with 0.750 POINTS , NO ORIGINATION FEE (720 mid score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. NO PROCESSING FEE. NO UNDERWRITING FEE. NO ADMIN FEE. You can contact Aaron at tel. 702.283.2333, fax 1.866.905.7922, or email at aaron.gordon@bankofamerica.com.

These rates assume your credit history is in good standing. This is not a credit decision or a commitment to lend; credit is subject to approval. The actual terms of your loan will vary depending on factors such as your credit history when you apply. Until you lock your rate, rates and terms are subject to change without notice. Additional programs are available.

Unless otherwise noted, these rates are based on an Owner-occupied residency in Nevada.

For adjustable-rate mortgages, rates are subject to increase after the initial fixed-rate period. A 30-year loan term applies to adjustable-rate mortgages.

Mortgage insurance may be needed, which could increase the monthly payment and APR.

We hope you find the above information valuable. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice – whether you’re thinking of selling your home or buying one – please call us at 702.285.1990.

TAKE ADVANTAGE OF RECORD-LOW INTEREST RATES BEFORE IT GOES UP

One of preferred lenders, Paula Clark at Wells Fargo Home Mortgage, is reminding us that mortgage rates are still very affordable but may soon go up. Here’s a snippet of her advice to homebuyers:

“Rates are at a low point right now and Wells Fargo thinks that we have a small window of opportunity before it goes higher. The economy is showing signs of improvement and the Fed is running at the end of its buying program. We think that rates could soon go up and go up quickly. If you have an offer accepted, are pending bank acceptance on a short-sale, or have borrowers that are floating on their interest rate, locking the rate is the best strategy per America's largest home lender.”

With the $8,000 First-Time Homebuyers Tax Credit ending by December 1st (we hope Congress extends the program) the highly reasonable rates, and the abundance of property inventory, home ownership is within reach now more than ever.

Wells Fargo offers a free 60-day lock in- which is more than enough to get the hardest loan approved and closed. Paula has personally averaged under 30-days from application to buyer signing docs at escrow. You can contact Paula Clark at 702-868-3920 or 702-277-3554. Please tell her The Dulcie Crawford Group referred you! We only work with the most reliable in the industry, and recommend those whom we can work with ourselves.

We hope you find the above information valuable in your home search. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice, please call us at 702.285.1990.

BUYER'S GUIDE TO BUYING A BANK-OWNED OR FORECLOSURE PROPERTY

In today's market, nearly four out of every five homes sold are bank-owned foreclosure properties. These are commonly referred to as Real Estate Owned (REO) properties.

Buying an REO property is very different than a traditional buyer/seller transaction. The process is much more taxing and several more entities are involved in the REO transaction. This can create more time and challenges.

Many REO homebuyers, especially those buying a home for the first time or their first bank-owned property, get frustrated during the process.Since the REO phenomenon started dominating sales, not coincidently, customer service scores in title, escrow, lending and real estate have plummeted.

Together with my team, I have developed this short, simplified guide to better help our clients understand the REO transaction process.

While this guide will not change the way the transaction occurs, it may help set more reasonable expectations upfront and eliminate some surprises. Buying an REO is a great way to save money and get a fantastic deal. Just be prepared for the uniqueness of the process.

What is an REO or bank-owned property?

A property acquired in foreclosure and now owned by the bank that foreclosed on the property is called an REO or bank-owned property.

How did this property become an REO?

The last owner of this home was not able the mortgage payments. The mortgage note holder seized the property and evicted the owner. The bank attempted to auction the property and pay off the existing liens and mortgages. If that was not successful, the bank was then deeded the property by the Trustee. It is now an REO property.

How do banks sell REO properties?

The banks are not in the real estate holding business so they must sell these homes and turn them into cash. Because most foreclosed properties are not successful at auction, REO properties have flooded the market.

In any market, if there is oversupply, the property values depreciate. Because of the depreciated market, the banks are going to take, in most cases, a substantial loss on the property.

The banks have independent, professional real estate agents that assist them is marketing and selling their REO inventory. The banks also assign asset managers who work closely with these agents.

How do banks price their REO properties?

When a bank takes over a property, they conduct their own due diligence to get an accurate idea of the value of the home. They hire a team of people to assess the current market value of the property through Real Estate Broker Price Opinions (BPO) and, in some cases, full property appraisals.

Based on these findings, they typically price the home within 10% of the current market value. There are always exceptions.

Banks are in business to make money. If they cannot make money, they need to minimize their losses. Banks are looking for a certain "net amount" on each particular property. This "net amount" is based on their research of the current market value minus costs associated with the property. They have priced the home sell quickly but as close to market price as possible.

Many buyers make the mistake of thinking the bank is desperate to get rid of the property. They believe they can submit a low-ball offer and expect to get an acceptance or at least a counter-offer. Think again! Low-ball offers (below 10% of list price) are not typically taken seriously. They may be a waste of your time and your agent’s. Worse yet, you may be perceived as an illegitimate buyer. Banks own many homes in the same area, and they use many of the same agents, so this could adversely affect future offers you make on other properties owned by the same bank or listed with the same agents.

Be reasonable. Do your research with your agent and determine what the home is really worth. Make your offer according to the home’s value, not to list price. There are stories of buyers making tens of offers and not having a single one accepted. By making offers based on the home’s true value and not what it’s listed for, you can mostly avoid this challenge.

How do I find an REO property?

There are thousands of REO properties in our market. There is only one way to effectively research them all in a timely manner...hire a professional real estate agent. The seller, upon the successful completion of the transaction, typically pays for the buyer's agent commission. This will cost you nothing, but may save you tens of thousands.

Are REO properties damaged?

Some are. Many are not. It is important to inspect the home yourself before making an offer. Once you have viewed the property, consult with your lender about the damage the home has, if any.

It is equally important to have a professional home inspector inspect the property before you commit to purchasing it. Your real estate professional will refer you to a top quality home inspector. When the inspection is complete, your lender will likely want to review a copy of it. They do this to protect you and their loan collateral, your new home.

Many loan programs will require repairs to be completed before you close escrow. If you do not have the money to do this and the selling bank is not willing to make these repairs, you may need to find another home.

What does "As-Is" mean?

Nearly every bank-owned property today is sold "as is." You will have to sign a waiver that states you are willing to accept the home in the condition it’s in with no further repair.

If a bank is marketing their home "as is", there is a possibility that the home needs repair and they are not willing to make them. Have your Real Estate Professional give you a thorough run down on what "as is" means to you during a transaction and once you have closed on the property. In addition, consult with your lender before making an offer on an "as is" home. Not all loan programs will allow you to buy a home that needs substantial repairs.

I am ready to buy an REO property, what do I need to do to get pre-qualified?

If you make an offer on a bank-owned property, they may require you to be pre-qualified with a home loan consultant from their own bank. They do this for two reasons; assurances and opportunities.

They want assurances that you are truly qualified to make an offer. While you may be pre-qualified by another lender, they will still want to review your credit, income and asset scenario in their own systems to make sure they are selling the home to a truly qualified buyer. It is not negotiable in most cases and most banks will not consider your offer without a pre-qualification letter from their own institution. This is legal for them to do this. However, you are not required to use this bank for your new mortgage loan; you just need to be pre-qualified through them. You can use whichever lender you choose for your actual purchase.

If you don’t want to be pre-qualified through numerous lenders, you may want to reconsider making offers on bank-owned properties or ask your agent to narrow your search to banks without this requirement.

The banks also want to create a business relationship opportunity with you, as well as your agent.

Do not let this mandatory pre-qualification discourage you. This is truly in your best interest. Many times, the Home Loan Consultants from these banks have been authorized to offer steep discounts and other incentives if you proceed with a loan from their bank. It certainly doesn’t hurt to have multiple lenders competing for your business.

In many cases, the bank is taking heavy losses on the property. If they can recapture the mortgage loan, at least it is not a complete loss. This creates an opportunity to parlay the great deal you got on the home with a great deal on your mortgage as well.

I am pre-qualified and ready to make an offer. What is next?

Your offer is submitted to the listing agent. The listing agent may have to submit to the Asset Manager, who works for the bank, and this is where the negotiation happens. It may take a few days for a response. Be patient. Do not bother writing in a short deadline for the seller to respond. They may not pay attention to it.

The bank will likely respond in the first 48 hours. Some banks take 3 - 5 business days. Once again, be patient. This is not your regular seller. You will not get a response over the weekend or holidays. All offers submitted over the weekend will be presented the following business day.

As a rule of thumb, REO listing agents will tell you if you make an offer and do not hear back within five business days, the offer has been rejected. Do not wait around for the rejection or the counter. It may never come. Come back with a better offer or find another property.

What does bring my “highest and best offer" mean?

Because the homes are priced so well, it is very common for the bank to get multiple offers. If the bank gets multiple offers, instead of making a counter proposal to you, they may go back to all of the potential buyers and ask for each buyer's highest and best offer.This means come back with your best offer, as the bank will choose one at this point. In many cases, the bank will not return counter-offers after they have requested this.

If you are presented with this opportunity, it means you are in the running. You now have one more opportunity to increase the price or better the terms of your offer. You can choose to do nothing at this point but it may not get you anywhere.

Meet with your agent. Determine the true value of the home. Review your down payment, closing costs needs, and loan terms and then come back with your best shot.

I made a list price offer but they didn't respond. Why?

Many REO properties, especially those listed below market value receive multiple offers. Some houses sell above list price. The bank is like any other seller in the market. They can choose not to accept your offer if one comes in they think is better than yours.

If you offer list price and ask for your closing costs to be paid and another buyer offers list price and doesn't seek closing costs, the other buyer's offer is stronger.

How long will it take to complete my transaction and move into my property?

Traditionally, buyer and seller contracts are 30 days. However, this is not a traditional buyer/seller transaction. In today's REO property market, many buyers feel more comfortable with 45-day closings. Many banks have late fees of $100 or more per day past the contracted close of escrow date. These fees add up quickly so it is important to understand what problems can arise that may make you late.

What can make me late?

Aside from the regular loan process, which sometimes takes longer in today's stricter lending environment, there are many challenges unique to REO properties. When the previous owner of your new home was foreclosed on and the bank took possession, a "Trustee's Deed" was issued in the bank's name. If this process is not executed properly, it may cause delays when the county is trying to record the deed into your name. There is little that you can do about this except wait until it is corrected. I have seen this issue take between one day to seven weeks to resolve.

If a Home Owner's Association (HOA) manages the community, your title company will request an HOA demand on the property. This demand will ensure that the bank pays any association fees and fines at close of escrow. If they are not paid at closing, they will transfer with the property into your name and will then be your responsibility.

It’s pretty likely that there hasn’t been an actual person living in this home in sometime. This means the home has not been kept. There may be a lot of fines (landscaping, upkeep, trash, etc.) levied from the HOA.

This can take time and be complicated but is necessary that it is done and done correctly. For more details, ask your escrow officer. It’s their responsibility to get this resolved.

For the most part, if the close of escrow is delayed by problems that are out of your control, the bank should not penalize you. Just be sure to do your part in a timely manner, and you should be okay.

I am in escrow and we discovered a bunch of repairs that need to be made to the home...what do I do now?

Many people that have lost their homes to foreclosure have been struggling financially. This usually means the home has not been kept properly and is in need of repairs and general maintenance. Other homeowners, once they know they are losing their home, damage the property purposely.

When buying an REO property, you must be prepared to do some repairs. Banks may not agree to make these repairs. They may not pay for these repairs. This may require out-of-pocket expense for you.

They may be willing to help with some, but don’t plan on it. Know what you are buying before you make your offer and be prepared to spend some money for repairs before you move in.

In most contracts, you can back out of the purchase if you find problems with the property or in loan qualifying in a certain time period. This is called the due-diligence period.

Make sure you know how long this due diligence period is when entering into a contract. Complete all inspections within that period so you can make an informed decision on whether or not to proceed with the purchase. It is important to respect these deadlines because they are strictly enforced.

Some repairs will be obvious when you visit the property. Others may be identified during the property inspection and the appraisal process. The inspector will identify repairs issues and may be able to give you a written estimate of the cost to repair the property. In some cases, an appraiser may also call for repairs to the property to bring it up to livable or safe condition.

Identify these issues quickly so you know what you are facing and have the opportunity to cancel if necessary. Again, this will help protect your deposit money.You will want to be cautious buying a bank-owned property if you barely have enough money for the down payment and closing costs unless you have arranged for repairs with the seller.

I have signed my loan docs and I am still waiting for my keys. What is taking so long?

Just like you executed many documents at your loan signing, the seller has a stack of closing documents to sign as well. Remember, the seller of your home is a bank or some other financial institution. It may take the representative who is authorized to sign off on these documents days or even weeks to get around to it. Your trusted and skilled escrow officer will make sure to stay on this for you.

So, there you have it. Complicated? Yes. Frustrating? Sometimes. Time-consuming? Quite often.

At the end of the day, hopefully, you are getting a new home for you and/or your family at a much-discounted price so it will all be worth it.

The best tip we can give you is to remain positive and be patient. Expect the challenges. There will likely be some. Together with your professional real estate agent and experienced escrow officer, we will all do our very best to get you through it successfully.

Call us today at 702.285.1990 if you: have any questions specific to your situation, are ready to start your home search, or want to list your home now.

WILL THE NEW MORTGAGE DISCLOSURE ACT CHANGE YOUR CLOSING TIMES?

This news just in courtesy of one of our trusted lenders, Aaron Gordon at Bank of America: In an effort to provide consumer protection and transparency when the buyer gets a mortgage, the Government has made law changes to mortgage loan processing and disclosures that take affect on July 30, 2009. Referred to as the MORTGAGE DISCLOSURE IMPROVEMENT ACT OF 2009, it is part of the Government’s commitment to making sure borrowers completely understand the terms and conditions of their mortgages and are given ample time to review what they are agreeing to.

If you are a homebuyer, here is what you need to know about it.

These changes will affect the processing times of loans. By being proactive and understanding the new Act, your closing dates should still occur in the usual 30 to 45 day timeframes that it takes for a transaction to complete, thereby minimizing the added stress of delayed closings.

Initial disclosures must be provided to an applicant within three days of loan application. No fees can be collected during this three-day waiting period, except for a reasonable credit report fee.

When a borrower makes an application, the lender will present them with initial disclosures. The disclosure package includes the Good Faith Estimate, Truth in Lending disclosure, and other legal forms as required by law.

The lender will not be able to collect any fees for appraisals until the borrower has had at least three days after getting the disclosures for review. This means that the appraisal report cannot be ordered until after the three-day waiting period after initial disclosures.
The borrower must get these disclosures again at least seven business days before he signs his loan documents. If he doesn’t, the closing will be delayed until he does get them and the seven-day period for review has passed.

The borrower must be provided a copy of his appraisal a minimum of three days prior to his loan closing. If he doesn’t, your closing will be delayed until he does get a copy and the three-day window for review has passed.

Any increases in fees that result in an APR change of 0.125% of the loan amount require re-disclosure. The borrower must then get his new disclosures and wait at least three days for review to close. Once again, this is being done to make sure the borrower has time to review what he is getting and be comfortable with it.

What if there are “surprise” costs at closing time? When that happens now, if the numbers are too far off from what was disclosed, he will have to leave the closing table, get new disclosures, get time to review, and will be unable to return for three days.

The only exception to this will be if it’s an emergency, such as if the home will be foreclosed on.

Also, keep in mind that if you change lenders in the middle of the process, the new lender will have to start the disclosure process once again. Changing lenders in the middle of the transaction could result in lengthy extensions.

Many borrowers today are often too busy to come to the office to make the application. These borrowers do it conveniently by phone or online. In these cases, the disclosures are mailed to them. As a result, the timeframes and wait period will be slightly longer.
Most lenders are estimating these changes could add three to 10 days to your closing times. Please plan accordingly.

So, let’s say you want to close as quickly as possible. What can you do to be proactive and make sure the closing time is fast as possible?

1. Make the application with your lender in person.
2. Get a fully executed, clearly legible copy of the purchase agreement as soon as it’s available from the lender.
3. Be ready to pay for the appraisal when asked.
4. Prepare and be ready to submit all requested documentation (pay stubs, W2’s, bank statements, etc.) within a day or two of application.
5. Carefully review the disclosure package and notify your lender of any corrections immediately.
6. Lock your loan at the time of application or early in the transaction.
7. Choose a credible, reputable, ethical lender you can trust to honor the rates and fees they disclose. Surprises at the closing table will result in lengthy delays.
8. Choose a lender whom you have confidence in. Changing lenders while in escrow will result in a lot of these disclosure clocks starting over.
   

If you do all of the above, there is no reason that your 30 to 45 day closing times should be affected by this Act.

It’s important to understand that this Act has been put in place so the buyer has sufficient time to make good, sound, responsible decisions about his loan. It is not meant to delay the process but rather, when taken into consideration, should justify that the loan is for his best interest. If you need straightforward real estate advice or a referral to any of our trusted lenders, please contact The Dulcie Crawford Group at 702-285-1990.

100% FINANCING WITH NEVADA BOND PROGRAM - FAST FACTS

First time homebuyers may not be aware that there is still 100% financing still available for well-qualified applicants, through the Nevada Housing Division’s Down Payment and Closing Cost Loan Program. The NHD offers the program to provide homebuyers under its First Time Homebuyer Program with down payment and closing cost assistance. This statewide initiative offered in every county in the state is one of the only 100% financing options left.

One of our preferred lenders, Aaron Gordon at Bank of America Home Loans, has provided us the following information:

Please bear in mind that this is a loan and a second mortgage - not a gift - which can provide up to $10,000 for down payment and closing costs.

The interest rate on a 30 year bond loan is 6.2000% today. As of 5/18, it’s 4.750% on FHA when you don’t use the bond.

The second mortgage of 3.5% to cover your down payment comes with an 8.20% interest rate and is a 20 year loan.

When is this good? If you have no other way to get the 3.5% down payment on an FHA loan.

On a $165,000 purchase, the Bond loan will cost the borrower an extra $150 - $175/mo. It makes a lot more financial sense to try and get the 3.5% or $7,000 down on this loan, as it will pay for itself within three years.

EXAMPLE:
Scenario 1
$165,000 sales price
3.5% REGULAR DOWN PAYMENT – 4.75% RATE
$845.00/month

VS.

Scenario 2
$165,000 sale price
0% DOWN PAYMENT – 6.20%
$992 + $49 for 2nd = $1041/month

This loan is not available for everyone and is based on qualifying guidelines. Although there are some strict eligibility requirements, this program may work for many first-time homeowners.

There are limited lenders in Nevada; Bank of America Home Loans is the main servicer.


Qualification Guidelines for the Nevada Bond Program
A first-time home buyer is defined as someone who has not owned or co-owned their own residence within the past three years. So even if you owned a home a few years back, if it’s not in the last three you may still qualify.

If you are purchasing in a "Targeted Area" there are no restrictions on former home ownership. Please contact Aaron if you think the home may be in a targeted area. These are usually areas where this is not as much resale activity and the State wants to stimulate its growth.

Total gross household income must fall within the Maximum Income Limits. In Clark County, if you have a 1-2 person household, income cannot exceed $78,480. If you have a 3 person or more household, it cannot exceed $91,560.

In Washoe County it can be a bit higher. In Elko County a bit lower. See the website for details at http://nvhousing.state.nv.us then click “NHD – Down Payment Assistance Program”.

The purchase price of the residence you wish to buy may not exceed the Maximum Purchase Price Limits for the area in which it's located.

Those maximums currently look like this:

• Clark: $349,515
• Nye: $283,981

Keep in mind: on a $349,515 sales price, the 3.5% down payment requirement would be $12,233 plus closing costs. Therefore, the $10,000 max bond help won’t quite cover that. Keep it under $300,000 if you cannot come up with anything.

Income must support the repayment of the loan pursuant to the underwriting criteria applied by FHA, VA, or Fannie Mae, as applicable. This simply means your loan has to be able to be approved by FHA, Fannie Mae, Rural Housing, or VA.

Also, if you require that assistance, you will have to prove that your assets, after closing, are $5,000 or less including, without limitation, cash, savings accounts, stocks, bonds and equity in real property. 401K is exempt, which is great news!!

You will also be required to successfully complete a First Time Home Buyer Education Course in person.

This is a fantastic loan program for first-time homebuyers who find themselves unable to qualify because they lack a minimal down payment.

However, due to historic low interest rates, they will want to exhaust all gift possibilities first.

LAS VEGAS SHOWS HEALTHY SIGNS OF RECOVERY

In a recent report from the Greater Las Vegas Association of Realtors through an article published in the Las Vegas Review Journal, Las Vegas’ home sales is continuing its upward trend for 13 consecutive months, although the trend in falling home prices continued in April.

As reported in the RJ:

“Realtors sold 3,198 single-family homes in April, a 78.3 percent increase from the same month a year ago. Overall, sales have more than doubled for the first four months of the year.

However, the median price dropped 39.9 percent to $141,720 as bank-owned properties dominate the market, accounting for about 80 percent of all sales and driving prices down.

The inventory of homes for sale, which peaked above 24,000 in 2007, has steadily declined to 22,112 in April, down 3.6 percent from a year ago.”

You can read the full story here: http://www.lvrj.com/business/44634067.html

The increase in home sales is largely attributed to unbelievably low mortgage rates and the abundance of homes for sale on the market. This is a golden opportunity for homebuyers because the bargaining power is in their hands. But one word of caveat: in today’s market where bank-owned and foreclosed homes flood the market, you need to work with a trusted Realtor who can guide you through the myriad choices and decisions you have to make, especially when it comes to the due diligence which includes home inspections. You need to have the best qualified professionals to assist you in identifying the potential problems that may arise with distressed properties that have been neglected or is in dire need of maintenance, as these can cost the homebuyer extensively in future repairs. It can be a time-consuming process so patience is indeed a virtue.

With the continued decline in home prices, the existing market is paving the way for a more affordable Las Vegas, although it will take a little more time for normalcy to set-in. For homeowners who are considering selling their home, it will be a case of what caliber of Realtor you have. Listing agents are a dime-a-dozen, and finding someone who can actually help you sell your home is like finding a needle in a haystack.

It doesn’t matter which side of the fence you are on. The Dulcie Crawford Group can help you whether you are a first time homebuyer or a homeowner who wants to sell your property. Call us today for real sound advice – we thrive in a market like this!

UPSIDE DOWN REFINANCE NOW AVAILABLE -THE OBAMA PLAN IS HERE!!

We are once again in high spirits to share this piece of good news that the Homeownership Affordability and Stability Plan (HASP), also referred to as “The Obama Plan” by some, has finally become available. This should bring some relief for homeowners whose financial situation are upside down and are left out in the cold because the value of their homes have significantly decreased, leaving them on a reluctant wait-and-see predicament. However, a word of caution from our preferred lenders Paula Clark of Wells Fargo Home Mortgage and Aaron Gordon of Countrywide Home Loans: this isn’t for everyone. Some will be too far upside down. Some won’t be eligible for a number of other reasons as we will outline below.

Still, this is very exciting news for those who are timely with their payments, want to refinance, but haven’t been able to take advantage of low rates due to valuation challenges.

Countrywide, which will soon be Bank of America Home Loans, is one of the first lenders nationally to market the new Homeownership Affordability and Stability Plan (HASP). Some call this “The Obama Plan.” This initiative is for borrowers who have demonstrated an acceptable payment history on their current mortgage but due to declining home values have been unable to take advantage of historically low interest rates to refinance or stabilize their payment.

Please read the rest very carefully. This will help many but not everyone.

THE GUIDELINES BELOW IS FOR CURRENT COUNTRYWIDE CUSTOMERS ONLY WHOSE LOANS ARE HELD BY FANNIE MAE AND FREDDIE MAC AS INVESTORS.

If you are not a Countrywide customer, contact your own bank and ask about your eligibility for HASP.

Here is a quick look at the highlights for the refinance piece of the plan:

• The maximum loan amount is $417,000 in Clark County.
• Your FIRST MORTGAGE cannot be upside down from the home's value by more than 105%. Your second mortgage may not count.
• The value of your home is NOT determined by an appraisal but by Fannie Mae and Freddie Mac’s automated systems. No appraisal is necessary.
• Your second mortgage does NOT count to determine your eligibility if that second mortgage is held by Countrywide or Bank of America. So let’s say your home is worth $200,000 today. You owe $210,000 on the first and the rate is 6.500%. You have a $70,000 second mortgage that’s held by Countrywide or Bank of America. This program allows you to refinance up to 105% of your first mortgage. This means you can refinance the first for $210,000 at close to today’s rates. The second mortgage will stay intact.
• If your second is with Countrywide or B of A, we will very likely re-subordinate our second mortgage to allow this refinance to happen.
• The investor on your loan has to be Fannie Mae or Freddie Mac.
• There is no cash-out. You cannot consolidate a first mortgage and a second mortgage.
• In this first phase, you are ineligible if you currently have mortgage insurance on your loan. If you bought your house using a first and second mortgages, you can still qualify.
• You are still eligible so long as you have no more than one late mortgage payment in the last 12 months. You may be permitted more than one late payment in the last 12 months on your Countrywide or B of A second mortgage.
• Your current loan cannot be VA, FHA, or a subprime loan.
• It's a streamlined loan. No income documentation and no appraisal. It’s a stated income loan. You won’t have to prove income again. You will sign a 4506-T however which is a form that allows the lender to obtain a copy of your tax return.
• Debt-to-income ratios may not matter if you are not increasing your current payment by more than 20%.
• There is no minimum credit score if your new payment is no more than 20% higher than your current one. 620 is the minimum if it’s 20% or more higher.
• Rates are slightly higher than current market but still very competitive.
• If you didn't have mortgage insurance before, you won’t have it now, regardless of your loan to value.
• Prepayment penalties on your current loan will be waived by Countrywide and Bank of America to make this program work for you if you are eligible.

If you are a Countrywide customer, give Aaron a call or send him an email to determine your eligibility. Please have your loan number ready when you call or email it to him so he can research your eligibility for you.

If you are interested in this program and are not a Countrywide customer, please contact your bank and ask them about their participation in HASP.

Aaron Gordon can be reached at:
Countrywide Bank, FSB
Cell: (702) 283-2333
Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190
Las Vegas, NV 89144
Email: aaron_gordon@countrywide.com
Web: http://countrywidelocal.com/aarongordon

Existing Wells Fargo clients need to call their lender and ask if their loan is a FANNIE MAE or a FREDDIE MAC loan. If they have a NON-Wells Fargo loan FREDDIE MAC insured loan- then they must go back to their existing lender to do the refinance loan. If they have a FANNIE MAE loan, then they can go to any lender that they want to do the refinance.

The important thing to remember is that relief is finally coming soon for existing homebuyers that are underwater!

Please feel free to contact Paula Clark at the following:
Wells Fargo Home Mortgage
8337 West Sunset Road, Suite 270
Las Vegas, NV 89113
Office: (702) 868-3920
Cell: (702)277-3554
eFax: 1-866-609-2470
Email: paula.l.clark@wellsfargo.com
Web: http://paulalclark.com/

MORTGAGE RATES REACH HISTORIC LOWS!

Many homebuyers are still on the fence whether to buy now or wait for rates and prices to go down further. The big question is: have we reached rock-bottom yet? That’s a question that no one can predict, and it is not going to be a simple answer as market conditions change on a daily basis.

The great news is, mortgage rates have reached an all time low and it would be most sensible to lock in the rates now if it fits within your budget. We have not seen rates like these in 52 years – and we don’t know how long this opportunity will be available to well-qualified borrowers. The bottom line is, do not take a chance and play a waiting game if you are ready to buy and has found a property you like.

The following information is provided by one of my preferred lender Aaron Gordon of Countrywide Home Loans:

“As the government announces more purchases of mortgage-backed securities, rates continue to plummet.

Interestingly, if you are still sitting on the sideline waiting for rates to drop further, the head of Freddie Mac came out this week and said he believes rates are at the bottom and any further drop will be minimal.

Plan on around:

• 4.375% WOW! (APR 4.508) FOR A 30 YR FIXED CONVENTIONAL LOAN with ONE POINT, NO ORIGINATION!
• 4.750% (APR 4.862) FOR A 30 YR FHA / VA LOAN, WITH ONE POINT, NO ORIGINATION!
• 5.750% (APR 6.024) ON A 30 YR JUMBO LOAN OVER $417,000 with ONE POINT, NO ORIGINATION!
• 5.125% (APR 5.262) ON A 5 YR JUMBO AR M with ONE POINT, NO ORIGINATION!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. These rates are for purchases only. Refinance rates are slightly higher.

NEW GUIDELINE ANNOUNCEMENTS THIS WEEK:

FHA announced new limits to cash-out refinances. They used to allow cash-out up to 95%. It’s now been lowered to 85%. Here are the rules:

• Must have owned the property at least 12 months
• You cannot be behind in your mortgage.
• You cannot have a non-occupying co-borrower to qualify for the new cash out limits.”

Here are more good news from Paula Clark, also a preferred Home Mortgage Consultant from Wells Fargo Home Mortgage:

“Friday's news showed that consumers are being understandably cautious with their finances, as the Personal Savings rate remained above 4% once again in February and among the highest savings levels seen in a decade.

Meanwhile, the government continues to make bold moves to help our economy. On Monday, Treasury Secretary Geithner unveiled a plan to remove toxic assets from financial institutions by using money from the $700 Billion TARP fund. The government will help mitigate the risk by offering private investors Billions of dollars in low-interest loans to help finance the purchases. Indeed, it's a bold strategy - let's see if it pays off!

And...there's room for cautious optimism on the economy, as good news was noted on several fronts last week. The housing market received good news when both Existing Home Sales and New Home Sales came in stronger than expected. Additionally, Durable Goods Orders for February came in better than expected, showing the first increase in six months, and the Core Personal Consumption Expenditure Index (Core PCE) showed inflation is presently at tolerable levels. Plus, the US Dollar received a boost when China said it will continue to purchase US Treasuries.

Bonds were jostled around mid-week, but home loan rates ultimately ended the week very close to where they began...near historic lows.”

You can read Paula’s full bulletin at http://www.mmgweekly.com/w/w.html?SID=81ca0262c82e712e50c580c032d99b60

Paula can be reached at tel. 702.868.3920, Cell 702.277.3554, email at paula.l.clark@wellsfargo.com, or on the web at http://paulalclark.com/.

Overall, the market is showing some robust activities in the last weeks. We at The Dulcie Crawford Group are always at the forefront to bring you the latest updates and will be happy to answer any questions you may have and assist you in your homebuying process. Call us today!

NEVADA BOND PROGRAM/100% FINANCING - LOWERS RATES!

Today, the Nevada Bond Program, the only active program with 100% financing, announced lower rates. Effective with new loan registrations on or after March 12, 2009, the Nevada Housing Division will adjust rates for the 2008 program as follows:

30 YR-FIRST MORTGAGE IS NOW 6.67% (it was 7.250%)

20 YR-2nd MORTGAGE, WHICH IS USED FOR THE DOWN PAYMENT ASSISTANCE, IS NOW 8.50% (used to be 9.250% )

The NHD bond program offers a first mortgage along with a second mortgage for down payment assistance of up to $10,000. Restrictions apply.

For details, please feel free to contact my preferred lender:

Aaron Gordon
Home Loan Consultant / Sales Manager
Countrywide Bank, FSB
Cell: (702) 283-2333
Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190
Las Vegas, NV 89144
email: aaron_gordon@countrywide.com
web: http://countrywidelocal.com/aarongordon