760.434.6873

Options for an Upside Down Home

October 18, 2012 by · Leave a Comment 

By , About.com Guide

Dealing with an upside down homeis sometimes postponed or ignored completely by home owners. After all, if one can afford to make the payments, one might not much care whether the home is upside down until something traumatic happens. Maybe a person loses his job or a family suddenly needs to move. That’s when the huge mortgage balance on that upside down home begins to matter.

Or, maybe a seller simply gets tired of waiting for appreciation to turn the upside down home right side up again. Home appreciation is not really like the stock market. Certainly not today. The days of wild swings are pretty much over. If your home is upside down, it could take another 10 years or more to turnaround values.

http://homebuying.about.com/b/2012/10/08/options-for-an-upside-down-home.htm?nl=1

How to Overcome Home Buying Obstacles When Buying Your First Home

October 17, 2012 by · Leave a Comment 

By , About.com Guide

It’s not always an easy process to buy a home. Many home buyers encounter obstacles, and it’s not unusual to run into flying monkeys and wicked witches along that yellow brick road to home ownership. The first step in home buying is to prepare for the obstacles.

An experienced real estate agent can help you to find the right home, determine how much to pay and negotiate the offer for you. Moreover, an agent can guide you every step of the way throughout the home buying process. But that doesn’t mean you won’t encounter stumbling blocks or obstacles.

Home Buying Obstacle #1: Finding a Down Payment

Unless you’re independently wealthy or just won the lottery, you will probably need to get a mortgage. Only VA loans, available to veterans, let a buyer put down zero. All other loans require a down payment. The two most popular types of mortgages are FHA loansand conventional loans, which require minimum down payments ranging from 3.5% to 10% of the sales price.

Home Buying Obstacle #2: Obtaining a Minimum FICO Score

The two magical numbers are 620 for FHA and 720 for conventional loans with mortgage insurance. If your FICOscore falls below that number, you may not qualify for those mortgages. For conventional loans without mortgage insurance, your FICO can dip as low as 620, but the pricing is ugly.

To find out your FICO score, you should ask your lender to run your credit report. You can obtain a FICO score online, but it will cost you, and it most likely will differ from the score your lender obtains. Your lender will pull your credit scores from 3 credit reporting agencies and take the middle FICO score.

Home Buying Obstacle #3: Meeting Lender Ratios

Most lenders expect a buyer to have a maximum 33% front-end ratio. This means your mortgage payment, plus taxes and insurance (PITI), cannot exceed 33% of your monthly gross income. If you earn $5,000 a month, the maximum PITI payment for which you may qualify is $1,650.

The back-end ratio is trickier. This involves adding together your PITI payment with all monthly revolving debt payments. That percentage of your gross monthly income should fall between 41% and 50%, depending on the type of loan and lender. With mortgage insurance, your highest back-end ratio cannot exceed 41%, which means to qualify for a higher back-end ratio, you may need to put down at least 20%.

Home Buying Obstacle #4: Receiving an Appraisal at Value

The Home Valuation Code of Conduct, HVCC, became effective May 1, 2009, and applies to all conventional transactions. Since January 1, 2010, it now applies to FHA transactions as well. It’s a well meaning process that is flawed.

In the past, a lender could select its own appraiser. That appraiser was generally experienced, knew the neighborhood and had appraised many homes in specific areas, which typically would result in a fair and balanced appraisal. Now, appraisal management companies pluck an appraiser at random from a pool of appraisers. Your appraiser could be from another area or unfamiliar with the neighborhood, which often results in a low appraisal.

If the appraisal does not come in at value, and if the seller refuses to adjust the price, buyers with an appraisal contingency can either walk away from the transaction or pay the difference in cash.

Home Buying Obstacle #5: Satisfying Loan Conditions

Underwriting can be frightening. An underwriterreviews the file and can make demands. These demands can include more documentation, a review appraisal and, even then, the underwriter could reject the loan for a variety of reasons.

If you have remarried, for example, and your former spouse had owned a home that went through foreclosure or a short sale, if your name was still on the mortgage, you could be disqualified from buying a home with your new spouse. The way to increase the odds of underwriting approval is to disclose everything about yourself and your financials to your lender, and make sure the loan officer has been in the business long enough to foresee future problems before you get that far.

http://homebuying.about.com/od/buyingahome/qt/Home-Buying-Obstacles.htm

Loan Locks – When is the Best Time to Lock a Loan?

September 28, 2012 by · Leave a Comment 

By , About.com Guide

When it comes to locking the interest rate on a mortgage loan, everybody wants to time it to get the best deal. There’s nothing wrong with that sentiment. It’s normal. Some of the time you’ll get lucky and some of the time you won’t. In other words, it’s a roll of the dice. With a locked interest rate, however, you are guaranteed that if interest rates go up by the time you are ready to close, you will pay the lower interest rate.

What are the risks if the loan is not locked?

Let’s say you decide to wait. You’ve narrowed down where you will get a mortgageand looked at all your loan choices. Maybe you’ve even decided on the loan product you want. But the market is moving down. The Fed has cut rates twice and you expect them to drop further. So you decide not to lock.

It’s a gamble. But if rates go up, you have absolutely no protection. You’re going to pay the higher rate.

What are the main elements to loan locks?

When deciding to lock a loan, there are 3 points to consider:

  • Interest rate
  • Points
  • Length of the lock period

Borrowers will pay extra for an extended loan lock. It’s not free. The interest rate will be a bit higher or the points will reflect the loan lock fee. That’s because the lender is taking on the risk that rates could go up while the transaction is processed, so the lender could end up losing money if the loan is funded at a lower-than-market interest rate. But locking the loan gives the borrower peace of mind. Real estate experts recommend that borrowers lock.

Are you committed to that loan if you lock?

Locking in the rate does not mean the borrower is wedded to that lender. The borrower is actually free to go elsewhere for a loan if the rates go down by the time the transaction is ready to close. Most borrowers don’t realize this little known fact. That’s because lenders don’t want to tell anybody. They don’t want to lose a loan by encouraging a borrower to jump ship.

But if rates go down, and the borrower threatens to pull the loan, to go to another lender, generally the lender will renegotiate the interest rate. Why would the lender do this? Because the lender wants to keep its customers.

How are loan-lock rates figured?

A 30-day rate lock might cost the borrower one-half of a point; whereas a 60-day rate lock might cost one full point. These fees are not paid up front; they are paid at closing. So if the loan never closes because the borrower has changed her mind or gone elsewhere, the fees are never paid. If a borrower doesn’t want to pay for the loan lock through points, the fee can be computed into the interest rate.

Is there a downside?

There is rarely a reason not to lock a loan. Interest rates change daily, sometimes hourly. To protect yourself against the volatility of the marketplace, it’s a good idea to lock your rate once you are satisfied with the rate. The reason some buyers dislike loan locks is because they want to grind every dime out of a transaction that is humanely possible. Just remember that if the rate was acceptable when it was locked three weeks ago, a drop of an 1/8 of a point or so isn’t the end of the world. You don’t need to be that kind of borrower to get a good deal.

http://homebuying.about.com/od/financingadvice/qt/LoanLock.htm

SOLD! 2159 Island Shore Way-San Marcos, CA 92078 (Represented the Buyer)

September 28, 2012 by · Leave a Comment 

Happy to announce that 2159 Island Shore Way-San Marcos, CA 92078 has closed escrow.  I hope my Buyers are happy with their new purchase!

Welcome home to this stunning five bedroom, three full bathroom home in the gated Rancho Dorado community of La Fuente.  With over 2550 square feet of well-appointed space, you will love the spacious and open feel of this elegant and clean home.  Downstairs, enjoy the convenience of a full bedroom and bathroom (complete with walk-in shower), making it the perfect retreat for visiting guests.  See supplement for more details on this incredible home.

Should I Fix Up My Home or Try to Sell As Is?

September 27, 2012 by · Leave a Comment 

By , About.com Guide

Question: Should I Fix Up My Home or Try to Sell As Is?
A reader asks: I’ve spent a lot of time and money doing exterior remodeling of my home, plus a sizeable remodel of the master bath. However, the rest of my 22-year-old home needs attention inside. The bath upstairs has dry rot and is dated. The kitchen, likewise, is dated. We have fairly new appliances, but the counters and cabinets probably need replacing. Should I fix up my home or try to sell it as is?
Answer: This is one of those questions where the answer depends on variables such as condition of competing inventory, whether it’s a hot, cold or neutral real estate marketand the likelihood of return on investment.

Selling a Home in As Is Condition

For example, a few years ago, a past client called to say her next-door neighbors needed to immediately sell their home. To say it needed work was an understatement.

The home appeared inhabitable. It had holes in the walls all the way to the exterior and urine-soaked wood floors; most of the electrical didn’t work and the bathroom tub had fallen through the joists. All the faucets leaked and, in one bedroom, I found a pile of dead rats swept into a pile in the center of the floor.

This was not a home that could be easily fixed up. Not even a coat of paint would have helped sell this place. We priced it low enough that it attracted multiple offersand sold with zero days on market. Only contractors and flippers made offers on this home.

Do Home Buyers Want Fixers or Fixed Up Homes?

Some home buyers want to buy a fixer upperhome, but generally these buyers want a home that will require light cosmetic repairs. Buyers who gravitate toward fixers are those who either don’t qualify to buy a more expensive home or those who want to make a profit by fixing the home themselves.

I’ve yet to meet a novice first-time home buyer who says, “Give me a home I can tear down to the studs.” Most fixer buyers are willing to do simple repairs such as paint the walls, put in new carpeting or replace light fixtures. They typically don’t want to rebuild a foundation or move walls.

Fixer-upper buyers will discount the price of the home to allow for the repairs and, for the inconvenience, a bit more. Say, a home is worth $100,000 fixed up, but it needs a new roof. A new roof might cost $10,000. A buyer most likely will not offer $90,000 for this home. Otherwise, they could buy an identical home with a new roof for $100,000 and not have the hassle.

A buyer for this type of home might offer $75,000, or even less. In this scenario, a seller would be smarter to pay for a new roof and sell the home for $100,000.

Moreover, many buyers will not buy a home that needs a new roof. They will worry the work involved will cost more than what they anticipated. Perhaps replacing the roof would involve tearing off the sheathing and repairing rafters, which could add to the cost. Most buyers want a home that is in move-in condition. By not making repairs, you will limit the number of buyers who may be attracted to your home.

Before Fixing Up Your Home

Smart sellers will weigh the cost of proposed improvements against the home’s market value after the repairs or upgrades are completed. If an upgrade won’t return the investment, such an improvement might not be warranted. Before you decide to lift the roof and install skylights in the master suite, realize that kitchens and baths carry the highest return.

Before deciding to make specific repairs before resale, take an afternoon off to tour other homes in the neighborhood. Note the condition and amenities in those homes. Compare these homes to yours. If, for example, most of the homes on the market have upgraded kitchens, you should concentrate on fixing the kitchen.

This doesn’t mean you need to buy designer appliances and tear out the cabinets. But a minor kitchen remodel might be a good investment. Sometimes, a fresh coat of paint on the cabinets and new hardware can give your kitchen an all-new look.

Make a list of everything that is defective, broken or worn out. If buyers spot problems or malfunctioning systems, they might wonder what else in the home has been neglected. Buyers to whom I showed a $1.5 million-dollar home in the Fab 40s in Sacramento passed on that home due to the sellers’ slight oversight. The entry way rug had a big rip down the center of its seam, and it was ragged. That rug made a bad impression on the buyers to such an extent that they were convinced the sellers didn’t care about selling their home.

Here are 10 minimum improvements to make before selling your home:

  • Patch all holes and cracks in walls and ceilings.
  • Fix all broken appliances and HVAC systems.
  • Repair leaky faucets.
  • Replace worn carpeting.
  • Repaint dark or marred walls with neutral paint (not white).
  • Replace broken windows.
  • Repair the roof.
  • Change out dated light fixtures / ceiling fans.
  • Replace old linens / window coverings.
  • Fix code violations.

If your real estate market is extremely hot — a seller’s market — you can get away with fewer fix-ups before selling; however, a home that needs repairs will still deliver a lower price. In slow markets — a buyer’s market — buyers might not even look at a home that needs work, unless it’s an REO.

http://homebuying.about.com/od/sellingahouse/f/090308_Fix_AsIs.htm

October 2012 San Diego Calendar of Events

September 27, 2012 by · Leave a Comment 

The Haunted Hotel     Sept. 21-Oct. 31
Do you dare to step into a darkened basement where eerie sounds and ghosts abound and where spiders and creepy creatures try to reach out to touch anything alive? Brokers Building basement (424 Market St.) (619) 231-0131 / www.hauntedhotel.com

The Haunted Trail     Sept. 28-Oct. 31
A Haunted Forest in the darkness of night is beckoning for you to come and walk upon its trail. Walk amid eerie sounds and strange smells and lurking shadows and where red eyes glow in the dark and creepy fingers reach out for you! Balboa Park. (619) 231-0131 / www.hauntedtrail.net

Scream Zone     Sept. 28-Oct. 31
The Haunted Hayride is a one-of-a-kind attraction where riders huddle together on a tractor-pulled haywagon while stalked by ghosts, zombies and other-worldly creatures! Del Mar Fairgrounds. 858-755-1161 / www.thescreamzone.com

La Mesa Oktoberfest     Oct. 5-7
The smell of bratwurst and other German food, the sound of polka music the refreshing cool beer, and lots of arts, crafts and family activities. Downtown La Mesa on La Mesa Blvd. between Acacia & 4th Ave. www.lamesachamber.net/oktoberfest.php

San Diego Walk Now for Autism Speaks     Oct. 6
Autism is a complex neurobiological disorder that impairs a person’s ability to communicate and relate to others. Proceeds from this 3K walk will go towards further research for autism. 8am-12pm. Liberty Station. (562) 237-4175 / www.walknowforautismspeaks.org

Pacific Beachfest     Oct. 6
There’s entertaining music, professional skateboarding, a fun run, surfing, beach volleyball, and sand dancing. You can shop along the beachfront for crafts, lunch, or beer. The event concludes with a fireworks show over the pier. 11am-7pm. (858) 273-3303 / http://pacificbeachfest.org

FilAmFest     Oct. 6
Filipino traditions and American culture come together to present a fine festival. There’s a variety of musical and costumed performances to entertain you while you visit the Cultural Stage and Art Pavilion. 11am-6pm. Paradise Valley Rd. (504) 390-3271

Oktoberfest by EdUcate     Oct. 6
In addition to a great feast of German food, beer, and music; there are contests, games, dancing, and activities that keep everyone amused all afternoon. 2-7pm. Standley Park lawn area (3585 Governor Dr.) (858) 337-5578 / www.uc-educate.org

Old Town San Diego Art Festival     Oct. 7-8
Over 100 artists are coming to Old Town to present their amazing creations. Enjoy the music and staged entertainment, see a Model T Car Show, and visit the food court and beer garden. 10am-6pm. (619) 233-5008 / www.oldtownartfestival.com

Old Town San Diego Art Festival     Oct. 7-8
Over 100 artists are coming to Old Town to present their amazing creations. Enjoy the music and staged entertainment, see a Model T Car Show, and visit the food court and beer garden. 10am-6pm. (619) 233-5008 / www.oldtownartfestival.com

Polish Festival San Diego     Oct. 12-14
Today’s event is for adults (age 21+). It’s a tribute to Polish culture complete with singing, music, dance performances, food, and spirits. There are Polish souvenirs and Polish food such as sausage, golombkis or bigos. 5-11pm. Pacific Beach. $3. (858) 272-7655 / www.polishmission.org  

La Jolla Art & Wine Festival     Oct. 13-14
An upscale art & wine festival in La Jolla presents art creations from emerging and established artists and delicious tastes of fine wine and beer. Live music stimulates a pleasing atmosphere for patrons to come and enjoy the day. 10am-6pm. Girard Avenue. (858) 349-4769 / www.ljawf.com

La Jolla Art & Wine Festival     Oct. 13-14
An upscale art & wine festival in La Jolla presents art creations from emerging and established artists and delicious tastes of fine wine and beer. Live music stimulates a pleasing atmosphere for patrons to come and enjoy the day. 10am-6pm. Girard Avenue. (858) 349-4769 / www.ljawf.com

La Jolla Art & Wine Festival     Oct. 13-14
An upscale art & wine festival in La Jolla presents art creations from emerging and established artists and delicious tastes of fine wine and beer. Live music stimulates a pleasing atmosphere for patrons to come and enjoy the day. 10am-6pm. Girard Avenue. (858) 349-4769 / www.ljawf.com

Union-Tribune Night & Day Festival     Oct. 13
This adult (age 21+) event features a main stage and a DJ stage; plus food vendors and local businesses and breweries to create an Oktoberfest look and feel. Bring your friends or a date to East Village for a good time. 3pm. (858) 401-0849 / www.utsandiego.com

Union-Tribune Night & Day Festival     Oct. 13
This adult (age 21+) event features a main stage and a DJ stage; plus food vendors and local businesses and breweries to create an Oktoberfest look and feel. Bring your friends or a date to East Village for a good time. 3pm. (858) 401-0849 / www.utsandiego.com

San Diego Healing Arts Festival     Oct. 14
This health fair promotes healthy living alternatives through music, lecture, natural products, herbal remedies, nutrition, and presentations. The Workshop Area offers various meditative arts. 7:30-10pm. Adams Avenue. (619) 546-4806 / www.althealnet.org  

Rancho Penasquitos Recreation Council Oktoberfest     Oct. 19
Come hungry for a feast of German potato salad, bratswurst sausage, red cabbage, sauerkraut, coleslaw, rolls, apple strudel, and spirits from the “Biergarten”. Have fun learning Bavarian folk dances. 6-10pm. Hilltop Community Park (9711 Oviedo Way) (858) 538-8131

Rancho Penasquitos Recreation Council Oktoberfest     Oct. 19
Come hungry for a feast of German potato salad, bratswurst sausage, red cabbage, sauerkraut, coleslaw, rolls, apple strudel, and spirits from the “Biergarten”. Have fun learning Bavarian folk dances. 6-10pm. Hilltop Community Park (9711 Oviedo Way) (858) 538-8131

Rancho Penasquitos Recreation Council Oktoberfest     Oct. 19
Come hungry for a feast of German potato salad, bratswurst sausage, red cabbage, sauerkraut, coleslaw, rolls, apple strudel, and spirits from the “Biergarten”. Have fun learning Bavarian folk dances. 6-10pm. Hilltop Community Park (9711 Oviedo Way) (858) 538-8131

Rancho Penasquitos Recreation Council Oktoberfest     Oct. 19
Come hungry for a feast of German potato salad, bratswurst sausage, red cabbage, sauerkraut, coleslaw, rolls, apple strudel, and spirits from the “Biergarten”. Have fun learning Bavarian folk dances. 6-10pm. Hilltop Community Park (9711 Oviedo Way) (858) 538-8131

Making Strides Against Breast Cancer     Oct. 21
Individuals with a personal commitment to the breast cancer cause are encouraged to form teams and raise pledges that are used for breast cancer research, screenings, and awareness. 7am-1pm. Balboa Park. (619) 682-7422 / www.cancer.org

Making Strides Against Breast Cancer     Oct. 21
Individuals with a personal commitment to the breast cancer cause are encouraged to form teams and raise pledges that are used for breast cancer research, screenings, and awareness. 7am-1pm. Balboa Park. (619) 682-7422 / www.cancer.org

Cardiff Surf Classic & Green Beach Fair    Oct. 27
As in years past, attendees will enjoy a variety of musical entertainment on our solar powered stage, multiple kids activities including two performances from the San Diego Zoo’s Dr. Zoolittle, food vendors and a surf contest. 124 Aberdeen Dr. 760.436.0431 / www.cardiffsurfclassic.com

Cardiff Surf Classic & Green Beach Fair    Oct. 27
As in years past, attendees will enjoy a variety of musical entertainment on our solar powered stage, multiple kids activities including two performances from the San Diego Zoo’s Dr. Zoolittle, food vendors and a surf contest. 124 Aberdeen Dr. 760.436.0431 / www.cardiffsurfclassic.com

Nightmare on Normal Street     Oct. 27
Normal Street has been transformed into an exciting Halloween party for adults (age 21+). You’ll see people mingle about in elaborate costumes and high fashion enjoying music, street dancing, food, and cocktails. 7-10pm. $10/$50 VIP. (619) 692-2077 x-209 / www.thecentersd.org

Fannie-Freddie short-sale program may hurt sellers’ credit scores

September 19, 2012 by · Leave a Comment 

Homeowners who qualify for the Fannie-Freddie short-sale program could see their credit scores fall, even when they’ve made timely payments on their loans.

September 09, 2012|By Kenneth R. Harney LA Times

WASHINGTON — With generous new guidelines from Fannie Mae and Freddie Mac likely to stimulate large numbers of short sales by underwater homeowners, what effect will the sales have on the sellers’ credit scores?

It’s a crucial question, because short sales typically cause FICO scores to plummet, sometimes 150 points or more. This, in turn, complicates sellers’ credit capabilities for years and makes additional borrowing — whether for auto loans, credit cards or new mortgages — tougher and more expensive.

The issue arises now because Fannie Mae and Freddie Mac — the dominant sources of home loan funds — recently outlined plans to approve short sales for underwater borrowers who are current on their loan payments, provided that they face an imminent hardship. Although the numbers of participants in the plan won’t be known for months, the two companies combined have about 3.7 million underwater mortgages in their portfolios on which borrowers are making their payments on time, according to federal regulators.

Short sales traditionally have been associated with extended periods of delinquency by borrowers. The technique itself — in which the lender agrees to accept less than what’s owed and the property is sold — usually has been employed as an alternative to foreclosure.

As a result, FICO credit scores — the major risk predictive tool used in the mortgage industry — have severely penalized borrowers who opt for short sales. VantageScore, the FICO rival created by the three national credit bureaus, also hits short sellers with triple-digit point losses.

In a recent blog post, Frederic Huynh, FICO’s senior scientist, said statistical reviews of short sellers by the company concluded that they “represent a high degree of risk” to lenders. More than 55% of short sellers in a sample of borrowers from 2007 to 2009 went on to later default on other credit accounts after completing the sale transaction. This ranks them in the same “heavyweight” risk class as people who have been foreclosed upon, filed for bankruptcy, or had a tax lien or collection account.

But hold on. Won’t underwater homeowners who qualify for the upcoming short-sale program be fundamentally different? Won’t they have solid mortgage payment histories despite being underwater? Why should they have to take the same heavy hits to their scores earned by people who didn’t pay their mortgage for months on end?

Good questions, but it appears that these sellers won’t get the break they deserve. The scoring system, credit experts say, isn’t set up to recognize — or properly report — short sales by on-time mortgage customers to the national credit bureaus. And the credit score companies aren’t planning to make any changes to the penalties their models assign to people who participate in short sales.

Anthony Sprauve, a spokesman for Fair Isaac Corp., developer of the FICO score, says that in general, when a loan is paid off for less than the full balance, it is “classified as a severe negative item” by the FICO scoring model. And “there are currently no plans to change,” he added.

Sarah Davies, senior vice president for research and analytics for VantageScore Solutions, said her company probably won’t modify its scoring algorithms either, despite the fact that the seller was not delinquent and came to a mutually satisfactory resolution with the lender.

Terry Clemans, executive director of the National Credit Reporting Assn., an industry trade group, says this is all inherently unfair for borrowers who have continued to make timely payments on their loans. Crushing them with deep credit score penalties “doesn’t reflect the fact that these people are actually excellent credit risks. They simply encountered an extraordinary situation” — namely, the national home value bust — which put them underwater.

A Fannie Mae spokesman, Andrew Wilson, said his company has no control over how short sales — whether of people who paid on time or those who didn’t — are scored. But when borrowers do a short sale rather than force the lender to foreclose, Fannie rewards them: They are potentially eligible for a new mortgage again within two years of a short sale. People who go to foreclosure, by contrast, may not be able to get a new Fannie loan for as long as seven years.

Bottom line: If you’re underwater and plan to use the new Fannie-Freddie short-sale program this year, don’t bank on any special favors when it comes to your credit score. It looks as if you’re going to take a big hit, despite all your on-time payments.

Should We Do a Wire Transfer or Deposit a Cashier’s Check to Close?

September 19, 2012 by · Leave a Comment 

By , About.com Guide

Question: Should We Do a Wire Transfer or Deposit a Cashier’s Check to Close?
A reader asks: “We are closing the sale on our first home next week. The title company says we must provide certified funds to close. They said we could either bring a cashier’s check to closing or we could do a wire transfer. I don’t have time to go the bank to get a cashier’s check, but my wife says if we wire funds, the money might not get to the title company in time. Should we do a wire transfer or deposit a cashier’s check to close?”– Nervous Home Buyers
Answer: Excellent question, Nervous Home Buyers. Let’s address two popular myths about cashier’s checks and wire transfers. The first is that a cashier’s check can’t bounce. Cashier’s checks can be altered by crooks or reversed by the account holder. The second is that wire transfers are instantaneous. Wire transfers take time.

How Do Cashier’s Checks Work?

An account holder goes to the bank in person, provides identification and requests a cashier’s check from the bank teller. You need to have cleared funds in your account to get a cashier’s check. Here is what the bank teller does:

  • Requests the payor / payee names and dollar amount from you.
  • Checks your I.D.
  • Verifies that you have the money in your account.
  • Draws a certified cashier’s check with your name and the payee’s name.
  • Signs the cashier’s check.
  • Hands you the check.

Depending on your relationship with the bank, the bank may charge a small fee for drawing the cashier’s check.

How Do Wire Transfers Work?

A wire transfer used to be delivered via telegraph, but most banks submit wire transfers electronically these days. The service many banks use for secure financial messages is called S.W.I.F.T. It stands for Society for Worldwide Interbank Financial Telecommunication.

  • You can ask your bank to do a wire transfer in person, over the phone or, in some cases, on the Internet.
  • Depending on the bank, funds may need to be wired to a corresponding bank, which can delay receipt.
  • Many banks send out wires at certain times of the day, and you could miss a cut-off time.
  • The wire may need to be approved before transmission.

Which is Better — a Wire Transfer or a Cashier’s Check?

Don’t you wish that you could walk into your home closingwith a big ol’ sack of money and dump the cash on a desk? But you can’t. Closers don’t want the liability associated with that much cash. Moreover, transactions that exceed $10,000 in cash must be reported to the I.R.S.

Getting a cashier’s check can present several problems.

  • Some banks require notice before they withdraw a large sum of money and give it to you.
  • Check with your bank beforeyou need the money.
  • You may need to deposit the funds with the closer the day prior to closing.

Wire transfers have drawbacks as well.

  • The wire transfer can get lost.
  • Numbers can be transposed.
  • You can miss that day’s deadline for wiring, and it won’t go out until the following day.
  • The manager who needs to approve the wire could be out.

Why Closing Agents Insist on Certified Funds to Close

Title companies, escrow officers and other closers can’t record a deeduntil the equivalent of cash is in hand. They represent both the seller and the buyer. They promise that the seller will receive the money when the deed is recorded. They promise to record the deed when the buyer deposits the money.

The laws from state to state can vary. For example, California Insurance Code Section 12413.1 regulates the disbursement of funds by title companies. Here are the main requirements:

  • Funds must be deposited and available prior to disbursement.
  • Funds received via wire transfer may be paid out immediately.
  • Funds received via a cashier’s check need to be deposited the day prior to disbursement.
  • Funds received in any other manner will delay disbursement.

The Key to Sell a Home as a Short Sale

September 17, 2012 by · Leave a Comment 

By , About.com Guide

Short sales are so ubiquitous now that some people think you can just sell a short saleas easily as can you order a pizza with pepperoni and extra cheese.

That’s because there’s a big difference between selling a short sale and closing a short sale. Any couple can decide to put their home on the market at a price below their mortgage amount and snag a buyer. But that doesn’t mean the short sale will actually sell. The bank might reject the short sale. The buyer might walk away at the last minute. When you’re trying to sell a home as a short sale, there are many factors involved to move the short sale from offer stage to a closed transaction. Not to mention, there is one key to sell a short sale that you should not overlook.

http://homebuying.about.com/b/2012/09/03/the-key-to-sell-a-home-as-a-short-sale.htm?nl=1

SOLD! 3749 Via Cabrillo-Oceanside, CA 92056 (Represented the Buyer)

September 17, 2012 by · Leave a Comment 

Happy to announce that 3749 Via Cabrillo-Oceanside, CA 92056 has sold!  I represented the Buyer and he is happy to call this beautiful property his HOME!

Great remodel with open kitchen to living room, granite counters, new cabinets, newer dual pane windows,plantation shutters, A/C, private location with no homes behind the property,  but a beautiful park to enjoy. RV/Boat/Trl. parking available, fully fenced and secured.