Tag Archives: homeowners

Politics

How To find Out What Your Home Is Worth & Refinancing


Declining property values are preventing some homeowners from taking advantage of today’s historically low interest rates and refinancing.

 

  • Many homeowners nationwide have either no equity or are in a negative equity position in their homes.  This leaves them with two options for refinancing, paying extra at the closing or what’s known as a cash-in mortgage.
  • Those considering refinancing will need to determine the current valuation, comparing it with the mortgage balance.  If the balance is at least 15 to 20 percent higher than what is owed, a refinance without a second down payment is possible.
  • To obtain a good valuation, some homeowners hire an appraiser, at a cost of $300 to $600, or more on a large or expensive property.  While this may be informative, most lenders require an official appraisal anyway, and that will have to be conducted by someone on the lender’s approved list.
  • Another, less costly, option a homeowner can use prior to approaching a lender, is to check the comparable sales in the neighborhood and see which homes and for what amounts homes have sold in the last three to six months.
  • Homeowners also can go to the county assessor’s office and look up specific homes that have sold recently in the neighborhood.
  • When looking at comps, homeowners should consider homes with similar amenities and square footage as the property in question.
  • Just before the home is scheduled for its official appraisal, homeowners should spend a few hours touching up and making sure it looks well maintained.  Hiring a cleaning crew, repairing any broken windows, and providing documentation on upgrades also can help the appraiser.

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Thinking of buying or selling?
For all your real estate needs, call or email:

John J. O’Dell Realtor®
Real Estate Broker
O’Dell Realty
9530) 263-1091
jodell@nevadacounty.com

Real Estate

Mistakes Housing Investors Make


With traditional investments delivering low returns, some are considering buying rental housing.  However, potential investors should do their homework and avoid the following common mistakes.

Making sense of the story

  • Investing in real estate right now can be profitable, if everything goes as planned.  Rents are increasing in many areas, and more properties may be coming on the market.
  • Last month, the Obama administration asked for proposals on how to convert at least some of Fannie Mae’s and Freddie Mac’s inventories of foreclosed homes into affordable rentals.
  • Traditionally, investors rented out properties for 1 percent of the purchase price per month.  However, according to one property management firm, today, some investors are receiving as much as 2 percent of the purchase price.
  • While it may be true that in some areas home prices are relatively low, that doesn’t mean the property can be rented out.  Homes in deserted subdivisions aren’t any more appealing to renters than they are to buyers.  The same is true for less-attractive properties or those in less-desirable school districts.
  • Prior to purchasing a property, investors should also factor in closing costs of 3 percent to 6 percent, the costs to fix up the place and maintain it, and the holding costs.
  • Investors become landlords, and as such, need to keep in mind that, just like homeowners, tenants may not always be able to pay rent.  Evicting tenants can take several weeks.
  • It’s also important to remember that owning a rental is not the same as owning a home.  An owner may put up with flaws in a home that a renter wouldn’t tolerate.  Additionally, many states and communities have strict laws for landlords, even for those who own only one property.

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Facing foreclosure?
Consider the advantages of a short sale
Call or email today for a free consultation

John J. O’Dell Realtor® GRI
O’Dell Realty
(530) 263-1091
jodell@nevadacounty.com

 

Real Estate

Getting A Fair Appraisal In A Tough Market


Since the real estate market took a downturn, some people have complained they couldn’t buy, sell, or refinance a home because an appraiser used bank-owned (REO) or short-sold homes as comparables in the valuation process, which dragged down the value of their home.  While using REO and short-sold properties can lower the value of a home, some homeowners are upset that their county assessor will not use these properties as comps for their property taxes.

  • In California,  some assessors will consider distressed sales when looking at comps, but it varies widely by county, neighborhood, and house.  In general, assessors will always look at non-distressed sales first and if there are enough, disregard REO and short sales.  However, if there are not enough standard sales, or the home is in an area dominated by distressed sales, the assessor likely will take these properties into account.
  • Under Proposition 13, property is assessed upon a change in ownership at its fair market value.  That is usually the same as the sale price.  However, with distressed property, the sale price may not equal fair market value.
  • Between changes of ownership, assessors can raise values only by an inflation rate, not to exceed 2 percent per year, plus the value of major improvements or additions.
  • Under Prop. 8, owners who think the market value of their property has fallen below its assessed value can ask for a temporary reduction to the fair market value.
  • Homeowners who think their homes are worth less than the assessed value can usually ask their assessor for an informal review.  If they are still not satisfied, they can file a formal appeal with their county’s assessment appeals board by Sept. 15 or Nov. 30, depending on the county.

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Can’t make your mortgage payment?
Consider a short sale, you may getting moving costs and more!

John J. O’Dell Realtor® GRI
O’Dell Realty
(530) 263-1091
jodell@nevadacounty.com
 

Real Estate

How To Lower Your Property Taxes

Despite home prices in major urban centers decreasing 31 percent between 2005 and 2009, property taxes across the U.S. increased by nearly 20 percent.  There is good news, however; homeowners can fight back.

  • Homeowners should keep in mind that property taxes do not always correspond with home values, because local governments typically don’t measure values every year and some have limits on annual property-tax increases.
  • As a result, current property taxes might reflect the home’s value when the market was healthier.  According to the Congressional Budget Office, property-tax adjustments lag behind changes in home prices by an average of three years.
  • Although homeowners cannot change their property-tax rate, which is set by the local government, homeowners can get their assessment lowered if they appeal to their local assessor.
  • One key to a successful appeal is fact checking the assessor’s work. About half of all successful appeals come from homeowners pointing out an error in the assessor’s description of the home, according to one property tax expert.
  • During the appeal process, which is similar to a less-formal court hearing, homeowners may present their case to several local officials or representatives.  The simplest way to convince officials that a property has been incorrectly valued is to provide evidence of the sales price of homes that are comparable to the property being discussed.  This should include square footage, amenities, and neighborhood characteristics.  Sale documents and photos of the property in question, as well as the comparable properties also should be brought in.
  • Homeowners who have made improvements or substantial changes to the property should be cautious about appealing an assessment though, as it could have negative effects and actually increase the property’s value and, in turn, the property taxes.

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For all your real estate needs
Call or email:

John J. O’Dell® GRI
(530) 263-1091
jodell@nevadacounty.com

Real Estate

Distrassed Bank of America Homeowners in California Have Chance of Principal Reduction

Bank of America Nevada City Photo by John J. O'Dell
Bank of America Nevada City Photo by John J. O'Dell


Bank of America has joined the Keep Your Home California principal-reduction program, making it the largest loan servicer involved in lowering loan balances for those with economic hardships.

Making sense of the story

  • Keep Your Home California is a program offered through the California Housing Finance Agency to help struggling homeowners avoid foreclosure.
  • Bank of America, which services more than two million home loans in California, joins others servicers involved in the program, including: California Dept. of Veterans Affairs, the California Housing Finance Agency, Community Trust/Self Help, GMAC, Guild Mortgage Company, and Vericrest Financial.  Agency officials hope the list will continue to grow, and that the program will continue to gain momentum.
  • Under the program, qualified homeowners may be eligible for up to $50,000 in assistance.  The program requires the mortgage investor to match dollar-for-dollar the amount provided by the program.
  • Bank of America borrowers who do not qualify for the principal-reduction program will be evaluated by bank representatives to explore other options, including a loan modification.
  • To be eligible for the program, applicants must: Own and occupy their homes as their primary residence; not exceed $729,750 in current unpaid principal balances on first mortgages; meet low- and moderate-income limits; complete and sign a hardship affidavit to document reasons for hardships; have mortgage loans that are delinquent or “in imminent default;” and have enough income to pay modified mortgage payments according to guidelines from servicers participating in the programs.
  • For more information about Keep Your Home California, visit keepyourhomecalifornia.org or call (888) 954-5337(KEEP).

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Thinking of buying or selling?
For all your real estate needs, call or email:

John J. O’Dell Realtor®
Real Estate Broker
O’Dell Realty
9530) 263-1091
jodell@nevadacounty.com

Real Estate

FHA Gives Jobless Homeowners One-Year Break

 

Beginning Aug. 1, the Federal Housing Administration will extend the period for unemployed homeowners to miss mortgage payments from four months to a full year, providing qualified homeowners with more time to find employment before the foreclosure process begins.

Making sense of the story

  • The new Special Forbearance program falls under the FHA’s Loss Mitigation program, which FHA-approved servicers must participate in.
  • The extended grace period only applies to FHA-backed loans and homeowners in the government’s foreclosure prevention program, the Making Home Affordable Program (MHA).
  • In addition to extending the forbearance period and removing the up-front hurdles for borrowers, the FHA also reemphasized its requirement that participating servicers conduct a review at the end of the forbearance period to evaluate the borrower for all additional, applicable foreclosure assistance programs and notify the borrower in writing whether or not he/she qualifies for any other available option.
  • If the borrower does not qualify for any foreclosure assistance option, the servicer must provide the borrower with the reason for denial and allow the borrower at least seven calendar days to submit additional information that may impact the servicer’s evaluation.
  • Housing and Urban Development, which oversees FHA, hopes private lenders and government-controlled Fannie Mae and Freddie Mac will adopt a similar policy.
  • For additional information on the program, including eligibility and requirements, please visit Read the full storyThinking of buying or selling?
    For all your real estate needs, call or email:

    John J. O’Dell Realtor®
    Real Estate Broker
    O’Dell Realty
    9530) 263-1091
    jodell@nevadacounty.com
Real Estate

Facing Foreclosure? Here’s Some Myths, Debunked

Although there are a number of programs available to help homeowners who have defaulted on their mortgages keep their home, the large amount of misinformation tends to result in troubled homeowners failing to contact their lender until it is too late.

  • Some homeowners believe, incorrectly, that contacting their lender early in the process will draw attention to their situation and result in a quicker foreclosure.  In reality, contacting the lender or servicer is an important first step, and the sooner, the better.  Contacting the lender provides the homeowner with an opportunity to explain their situation and the steps necessary to deal with it.
  • It is a common misconception that missing one mortgage payment will lead to foreclosure.  However, the foreclosure process doesn’t begin until payments are 90 days delinquent.  Lenders generally have a financial interest in keeping homeowners in their homes, so making contact as early as possible could help lenders modify terms of the mortgage or devise a repayment plan.
  • Once homeowners are behind on their mortgage payments, it becomes challenging to dig out of the hole.  Some homeowners try to solve this by depleting their savings or dipping into their retirement accounts to become current on the loan.  Most financial experts advise against this.
  • Delinquent homeowners may think they should stop making mortgage payments to get their lender’s attention, which often isn’t the case.  When possible, homeowners should stay current on their mortgage payments and continue to contact their lender on a regular basis.
  • Homeowners who have applied for assistance or loan modification programs in the past and were turned down are advised to reapply.  Program parameters are constantly changing, so the rules might have been liberalized since the last time the borrower sought help.
  • A number of free, government-sponsored housing services are available through the Dept. of Housing and Urban Development (HUD).  A list of HUD-approved agencies can be found at http://www.hud.gov.

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Having trouble with your mortgage, have you considered a short sale?
Let me help you. no charge, free consultation

John J. O’Dell® GRI
Real Estate Broker
O’Dell Realty
(530) 263-1091
jodell@nevadacounty.com

Real Estate

Home Improvements That Boost Resale Value

Photo courtesy of Sermon Series
Photo courtesy of Sermon Series

When deciding which home improvements to make, many homeowners consider the amount of resale value the improvement may or may not make and compare that against the cost of the renovation.   Homeowners concerned with making home improvements that will pay off when it’s time to sell the property, should consider the following tips.

  • The first improvement/repair homeowners should consider are those that impact the home’s basic structures and systems.  Potential home buyers generally do not want to face expensive repairs, and if items such as the foundation, roof, air conditioning, water heater, or other basic structure need to be fixed, the property will be considered a fixer-upper and its market price will be discounted accordingly.
  • Some minor replacements will produce big results for minimal cost.  Replacing and coordinating bathroom and kitchen hardware and fixtures are generally inexpensive, but tend to make a big difference.  The same can be said for getting rid of any dated finishes, such as old wallpaper and brass light fixtures.
  • Homeowners who don’t know when or even if they will be able to sell their home are advised to choose home improvement projects carefully.  Unless the home is located in an upscale neighborhood and the property already is immaculate, owners can skip expensive upgrades – such as remodeled bathrooms – and focus on the fundamentals.

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For all your real estate needs, write or email:

John J. O’Dell Realtor® GRI
O’Dell Realty
(530) 263-1091
jodell@nevadacounty.com

Real Estate

Careful When You Show Your Home to Potential Buyers, Don’t Become A Crime Victim!


Safety should always be a top concern for both real estate agents and home sellers.  While holding an open house and allowing potential home buyers to tour the property is an effective means of selling a home, home sellers should be aware of the risks.

  • While most criminals will seek small items and anything they can fit into their pockets, sometimes these “buyers” are actually scoping the home for a future burglary.
  • According to a safety expert who has worked with the NATIONAL ASSOCIATION OF REALTORS® and other groups, first and foremost, people should trust their instincts, so if someone or something is making one uncomfortable, be extra alert and extremely careful.
  • If a potential buyer or unknown agent arrives at the house unexpectedly, the homeowner should tell him to call their agent to schedule an appointment.
  • Before allowing anyone to enter the house, all lights should be turned on and all blinds, shades, and curtains opened.  Homes are safer for showing when someone outside can see inside.
  • In advance of an open house, homeowners should remove all valuables, including jewelry, artwork, and electronic equipment.
  • Additionally, money, mail, bank statements, credit cards and keys should never be kept lying around, or even in a drawer with easy access.
  • Prescription drugs should be kept in locked cabinets, to prevent anyone from stealing them or using the information on the label.
  • Professional burglars often linger in rooms, looking for items they can dispose of quickly.  They also search for ways to get in and out, scouting possible escape routes and checking for security devices.  Couples up to no good often split up so one can check out the house and its belongings, while the other keeps the agent and/or seller occupied.

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For all your real estate needs, call or email:

John J. O’Dell
Real Estate Broker
O’Dell Realty
(530) 263-1091
jodell@nevadacounty.com

DRE# 00996641

 

Real Estate

Mortgage Aid Offered to Those Who Cashed Out Equity


The California Housing Finance Agency announced this week that people who cashed out equity on their home now are eligible for three of the four “Keep Your Home California” programs.

  • Keep Your Home California is a state-run program funded with $2 billion from the U.S. Treasury’s Hardest Hit Fund.  It is designed to help low- and moderate-income people who are unemployed or owe more than their home is worth pay their mortgage.
  • There are four individual programs that fall under Keep Your Home California.  Eligible homeowners can get up to $50,000 in assistance from one or more of the four programs combined.
  • Under the new rules, people who took equity out of their homes will be eligible for the unemployment mortgage assistance, mortgage reinstatement assistance, and transition assistance programs if they meet all the other program requirements.  Homeowners who cashed out equity will continue to be ineligible for the principal reduction program.
  • When the program first started, homeowners who had tapped the equity in their homes were ineligible for the programs.  CalHFA decided to include these homeowners due to the large number of homeowners who were being turned away for assistance.
  • Under the program revisions, homeowners who originated mortgages after Jan. 1, 2009 also are eligible for the same three programs.  Originally, these borrowers were excluded because they also are excluded under the federal Home Affordable Modification Program, so CalHFA wanted to be consistent with HAMP.
  • To qualify for any of the four programs, homeowners must fall below certain income limits, must be living in the home, and cannot own a second home, among other criteria.  For additional requirements, visit www.keepyourhomecalifornia.org/eligibility.htm.

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For all your real estate needs call or email:

John J. O’Dell
Real Estate Broker
O’Dell Realty
(530) 263-1091
Email John jodell@nevadacounty.com

DRE# 00669941