Freddie & Fannie Join HAMP = Easier Short Sales

 Freddie Mac and Fannie Mae just announced  their own version of the HAFA programs. They’re both planning to be implemented by August 1, 2010.  The programs are very similar to HAFA in that they simplify and streamline the use of the short sale and deed-in-lieu (DIL) options.  They also use similar forms and timelines. In addition, the program expires December 31, 2012, like HAFA. However, some of the major differences offered by the new Fannie Mae and Freddie Mac HAFA programs include, but are not limited to:

- Both institutions will pay the servicer a $2,200 incentive fee for successful short sales

- Both institutions will pay the servicer a $1,500 incentive fee for all successful DILs

- The Deed for Lease (D4L) is available for borrowers who request and are approved to remain in the property following a successful DIL.

- Borowwer will get $3000 to assist with their relocation upon closing.
For more details, visit the following links: eFannieMae.com and Freddie Mac Bulletin

My consultation is FREE as are my services.
My fees are paid by the bank, not by you!

We use attorneys to negotiate your Short Sale.
Attorneys have more options than Real Estate agents in a short sale.
Do you want the best representation possible? Call me.

Dennis Smith, CDPE at 760-436-0087
CDPE - Certified Distressed Property Agent
RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate 
Dennis@sandiegohomes4u.com

http://HAFAShortSaleConsultant.com/





Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County

New CA Homebuyer Tax Credit up to $10,000. AB 183

New CA Homebuyer Tax Credit up to $10,000. AB 183
Assembly Bill No. 183 passed the Assembly and Senate on 3/22/2010
The governor signed it the next day.

AB 183 picks up when the $8000 Federal Tax Credit leaves off - May 1, 2010.
If you are under contract by 4/30/2010 and close by 6/30/2010, you could get $18,000.

1. The purchase of a qualified principal residence on or after May 1, 2010 and before August 1, 2011, pursuant to a contract executed on or before December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, until the $200,000,000 is gone.
Some say in 2-3 weeks!!!
(Under contract on or after 5/1/2010 and by 12/31/2010, and closed before 7/1/2010)

2. The amount of the tax credit is the lesser of 5% of the purchase price or $10,000, which means any home over $200,000 in price will be limited to the $10,000 credit.

3. The total allocation of $200,000,000 in tax credits is divided between first time home buyers and purchasers of homes that have never been lived in (new homes), $100,000,000 being allocated to each type of purchaser.

4. Only one credit will be issued to a first time homebuyer that buys a new home.

5. A “qualified principal residence” is an attached or detached home that will be used as the principal residence of the purchaser, and has either never been occupied, or is purchased by a first time home buyer.

6. A “first time home buyer” is and individual, or individual's spouse, who has no present ownership interest in a principal residence now or over the three previous year period, ending on the date of purchase.

7. The tax credit is non-refundable, meaning it is a use it or lose it credit. NOTE...You would need to have $3,333 of state tax liability each of the next three years to utilize the maximum amount of the credit available. It will be allocated over three years, beginning with the year the escrow closes on the new home.

8. You must apply for the credit within 2 weeks of closing or lose it.

9. Buyer must live in the home for 2 years or return the money.

If you are under contract by 4/30/2010 with a qualifying home, and close by 6/30/2010,
you should be able to double dip!!!  You can get both the State and the Federal Tax credits but you must hurry.  competition is high and inventory under $500K is low, therefore we are getting multiple offers on most properties under $500K.

AB 183  is the New CA Homebuyer Tax Credit for up to $10,000.




Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.

dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

See my Short Sale and Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm
You can view all available San Diego area homes for sale at
http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

What is “Value Range Marketing, VRM, price range marketing

What is “Value Range Marketing, VRM, price range marketing
I brought the first buyer that successfully closed a “price range” listing on 8/16/1995.

Range Pricing started in San Diego and San Diego has remained the stronghold. Some other MLS’s do not allow it.

I use price ranges for sellers when, and how, it makes sense. It works well in the right circumstance but it can be confusing for the inexperienced agent or the homebuyer.

Conventional thinking for many buyers is “Why would I offer more than the low end of the range?” That is a valid question. I always recommend that buyers use the range pricing as a search guideline only. Then place their offer according to the comparable prices I provide. Same thing with the bank owned properties. Some banks are pricing properties 10-20% below the comparable sold prices and letting the buyers bid them up to market value or above.

Bank owned listings almost never use a range (only 23 of 7078 in the last 6 months). Since much of the lower end inventory was bank owned, we did not see ranges as much. Now that prices are going up, and bank inventory is dropping significantly (only 696 active bank owned house or condo listings as of today in all of San Diego County out of 7456), we see more regular sellers entering the market, along with investors selling their flippers. Both groups are more likely to use price ranges.

The Value Range Marketing good: More buyers will see the listing.
If the property is worth at, or a little above, a big round number such as $300,000, the seller is in a quandary. If it is priced $10K above that round number, say $320K, most buyers who only want to spend $300K will not see it. If they price it lower, they are afraid they will not get offers over asking, to where the actual value is.

The Value Range Marketing bad: Not understanding how it works.
1 - Agents that have too big a range…20% or more on each side. $240K to $360K. Get real! Are you a professional or not?
2 – Too small a range. $10,000 spread on the range. $270K to $280K
3 - Range pricing top just under the big round number: $270K to $299K
4 - Weak agents that can not convince sellers of the real value of their property. The agent knows the home will sell for no more than $400K but the seller thinks it is worth (or seller needs to get) $500K. Therefore, $400K to $500K range.
5 - Ineffective pricing: having the bottom price range just above the big round number such as $305K to $330K. The low price probably should have been $299K.
6 – Agents who do not know how to properly explain how range pricing works.


Where you ultimately end up closing in relation to the high and low price with a range listing is dependant on what the range pricing is, compared to the market value of a home and how the range is used.

In the “hot” market, I would call the listing agent and ask, “Do we have to be over the high range?” Often the answer was yes because the market was moving up so fast.

From 2007 to Feb of 2009, as prices dropped, more offers were accepted under the low range price. That is changing now with the low amount of inventory under $500K

I just checked 100 range price listings of the 362 sales within the last quarter over $500K and they sold as follows: 27 under, 61 within & 14 at or above the high range.
The under $500K was similar: 14 under, 64 within and 23 at or above the high range.

Ultimately, every situation is different for the buyer and for the seller in what their goals and negotiation strategies are.

The MLS states “The seller will entertain offers between low price and high price”.
If you offer near or under the low price, the sellers says ”That is entertaining, now lets start negotiating”.

Call me so we can meet your Real Estate Goals for 2010.  The opportunities are there!





Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.