Buying houses in California

As a former broker of a independent office in Downey, California, I can give you my best advice. Buying homes in California is very easy, if your have good credit. Now with the new foreclosure problems in California, the banks are extremely careful about who they loan money to. Years ago, we use to help less than perfect buyers obtain homes through creative financing. But, now that is a thing of the past. If you know what you can qualify for ahead of time, it will save you a great deal of hardship.

The amount that you can qualify for is 33 percent of your income after taxes, in most cases. But wait, you must deduct all your debts. So if you make $5000 per month and you have $1200 in monthly debts, that leaves you with a monthly income of $3800. You take 33 percent of that figure or $1254 per month. That figure includes the cost of PMI (private mortgage insurance), taxes and insurance. If you are putting more than 20 percent down on the purchase of a home, then there is no PMI. Some loans with hard pressed areas, are offering basically no money down loans and no PMI.

Wells Fargo Bank is one such bank offering a loan without no PMI. You can look at their offers through this website:

https://www.wellsfargo.com/mortgage/

If you are looking for a bank that offers no down payment, here is a link for a article listing the major banks. Wells Fargo also does no down payment along with Bank of America. Bank of America is much easier to get a loan through.

http://www.msnbc.msn.com/id/24580917/

As the article discusses, the down payment is disguised through gifts. Normally a down payment must be in your account for over 2 months. Some banks are offering no down payments, where a 3rd party holds interest on the property, such as a lien holder. All of these loans have catches.

California is still the most expensive place to live out west. Home prices generally run in excess of $200,000 unless you live out in the country. California is the land of the rich and the famous, but even Los Angeles has its slums. Some of the nicest areas to live in Southern California is Downey and Lakewood. They are very affordable communities. San Bernardino and Riverside communities are more affordable, but with the drive to commute, many prefer the locality of being close to Los Angeles. 

If you want to find a reputable Realtor, contact the California Board of Realtors at:

http://www.car.org/

A local Realtor will be able to guide you to the best deals and many companies have on line services. One such service would be Century 21Jervis offices located in Downey. If you want any other area, they can direct you. They are the best office there:

http://century21jervis.com/index.htm

Financing can be set up through the home loan departments at Bank of America:

http://maps.google.com/maps?oe=UTF-8&sourceid=navclient&gfns=1&um=1&ie=UTF-8&q=bank+of+america+in+home+loans+at+downey+california&fb=1&split=1&view=text&latlng=2450088227044241933&ei=S_KFSvX9B9nTjAeC3dSiCw&sa=X&oi=local_result&ct=result&resnum=1

These are merely examples of places I have dealt with in the past and know that they are reputable. In no way can I guarantee them today. Buying a home is a simple matter with prequalifying for a loan, finding a Realtor, who will in turn find you the home of your dreams.

Tips to getting into your dream house

The dream of home ownership is within reach and you want to have the perfect home, not just any home. Deciding which way to go and how can you have that dream home that you have worked so hard for. Look at these tips in these very true stories and then you too can have what you are seeking, a home that has turned out to be more than you could imagine.

I was a Real Estate Broker in Downey, California and I had dreams too. I opened a small independent Real Estate Company next to the Albertson's grocery store. It was quaint and it was homey and it was very welcoming. People could come and talk to me about their problems or their dreams. I tried to help each one of them find the exact home that would fill their dreams.

A mansion proves to be the right dream home:

There are many different scenarios really. I had a client who was a new dentist. She had lived in a dark and dreary condo for over ten years and she so wanted to live in a mansion. Something that all her friends would envy. I found her a house on Downey Avenue. It was huge and it was brand new. It had over 3000 square feet with two floors. This was her dream home and she was able to purchase this home by me reducing my commission. She repaired all my teeth after that sale, not a bad deal.
Nancy gets her dream home in downtown Long Beach:

Then there was Nancy, my best friend. She had longed all her life to own a home. Nancy was married to a man who worked very hard and he was really good. She had come out of an abused relationship and her mom was dying in the hospital. Her husband had VA benefits, so he could buy a home with almost nothing down. She just needed her dream home. Me and Nancy would go look at homes all the time and each time her husband would say no.

We started looking at a price of around $150,000, but her husband said no again, then finally Nancy saw this wonderful building in downtown Long Beach. It was within minutes of her mom's convalescent home and her job too. It had a huge courtyard with tons and tons of trees and flowers. It was beautiful as could be. The price was only $109,000 and guess what? Her husband said yes. So Nancy moved into her beautiful dream home and Nancy was happy at last.

Downey provides dream homes for residents of Los Angeles:

I had a couple who were referred to me who lived in downtown Los Angeles. They lived in a very crowded area in a very ugly apartment and they wanted to buy a home in Los Angeles for around $179,000. I told them impossible. They explained to me what they wanted and how many rooms they wanted. They wanted a play room for their children and they wanted to live on a country street where they could walk at night.

I convinced them to come to the serene area of Downey and look at the excellent schools and the many places to eat. I convinced them to just try. The very first house I showed them, they bought. It cost them $159,000 and they had a huge enclosed patio in the back for the children that had a fireplace and completely carpeted. It was on a quiet street with many trees and it was close to the expressway for the both of them to get to work. They could not believe they had their dream home for so little.

My dream home is in El Paso:

I have owned many homes, but my favorite one is in the eastern side of El Paso, up in the mountains. My home was simple, but very beautiful. I could walk out my back door and sit on my patio and the only neighbors I had was this huge mountain. My husband and son could go run up the mountain and feel free. It was a huge 3 bedroom and 2 bath home with a beautiful bay window that looked out onto the mountains.

It was peaceful and it was serene and it was a steal. I assumed a man's loan for $5000 and I paid $666 each month in mortgage payments. My kitchen looked out over the front lawn and it was in the rich area of El Paso. It was my dream home and I so do miss that home. It was a piece of paradise next to heaven.

Tips to consider:

Look at all these scenarios and think about what each one did.

1. VA loans require zero down payment.

2. Move from a big city to a suburb to save money.

3. Ask your Realtor to help with expenses by cutting commissions and negotiating closing cost.

4. Look at assuming someone's loan and save tons of money on loan fees.

Buying your dream home is not that difficult. It may not be practical to move to a different state or another country, but you can find your dream home in your locality. Decide what would make you the happiest and then see what you can buy. Never give up, just like Nancy did and hopefully like Nancy, you too will be moving into your dream home very soon.

Things to watch out for when buying a foreclosed home

To many people want to run and buy foreclosures before they know what they are doing. Buying foreclosures can be a way to make money and it could be a way to lose your life savings, so be careful before buying foreclosed homes. This article will give you some legitimate ways to find foreclosed homes and what to watch out for.

First consider many things here and please understand the differences. Short Sales are usually homes in foreclosure, but not foreclosed homes. You can buy a short sale, but at slightly less than market price. There is no way for an investor to make money buying short sales, as they must appraise. The banks will not sell the home for less than what they could get elsewhere. They will choose to let the home foreclose and place it back on the market theirself.

A foreclosed home is one where the owner has already lost the home and it is being auctioned on the court steps or available through many sources. A foreclosed home may still have the owner inside the home and you may have to evict the owner. A foreclosed home is not open for inspection, so the most you get to see if by a drive-by. Now, if you are buying a bank foreclosed home, they have already evicted the tenant and have raised the price to accommodate cost involved in the transaction.

The best buy is on the steps of the courthouse, but you must take the responsibility for the repairs, evicting the tenants and even paying off the 2nd and 3rd mortgage. So it is necessary to hire an attorney to protect yourself. When purchasing a foreclosure on the steps of the courthouse, you need to have a fairly large down payment ready to give them on the spot and your financing already set up.
The funds must be in the form of a cashier's check. If the second is owed money, they will be on the steps also and you must agree to pay them, so purchasing a foreclosure is not all that easy. You need to have searched the title prior to the sale to look for all liens to protect yourself.

Where can you purchase foreclosures:

1. Contact a reputable Broker. Especially in todays market, there are tons of Brokers or Realtors working foreclosed properties. They will have a list of all available foreclosures and can help you protect your savings and yourself.

2. HUD homes for sale. You must go through a Broker to buy a HUD home, but you can search the listings yourself. You cannot bid yourself. You must be represented. HUD homes generally go on the high end, but have low down payments and quick financing.

http://www.hud.gov/homes/homesforsale.cfm

3. You can contact any Bank and ask to speak to the REO department. This is also called the loss mitigation department in some banks. Ask for a list of properties for sale and they will help you. They may want the loan with their bank, but that is no problem if you are qualified.

4. You can contact the US Marshall's Office. These homes were taken because of drugs, firearms or alcohol and they have a list available for sale. 

http://www.usdoj.gov/marshals/assets/nsl.htm

5. You can contact the VA. They have many homes for sale and some homes for as little as $1 down if you qualify.

http://www.homesales.gov/homesales/mainAction.do

6. The IRS has foreclosures also. These homes have been repossessed due to tax liens. You can get a list of properties from them also.

http://www.treas.gov/auctions/irs/cat_Real7.htm

As you can see, there are many safe places to buy foreclosures. If you are a learned investor and know how to do the foreclosed property route on the court steps, then those are your best buys, but if not, try some of these links to protect yourself.

How Realtors Can Take Advantage of the Current Housing Market

A Realtor's job is to build a client list and through that client list, work referrals and do what is necessary to survive. Looking for potential clients such as open house, floor duty and cold calling. There is a large amount of ways to work in a foreclosure market, you just have to look. How a Realtor can take advantage of a declining foreclosure market by being aware of the new situations and adapting towards change.

I became a Realtor 22 years ago and during that time the market was in crisis. Home prices were dropping like crazy and Realtors were resigning their positions and choosing to go work for a salary. Not me, I started in a bad year, but I survived. How can a Realtor take advantage of the current housing market? By leaps and bounds and lots of hard work. Any good Realtor can survive any type situation and at any time of the year.

Ethics are the keys:

Ethics and good old know how will get you through this crisis. No matter how poor I ever was, I never ever took advantage of anyone. I had many couples come to me after they just had a bad fight and want to sell their home, I refused. I would send them home to cool off and tell them to come back in a week to talk. Not one of them returned. I cut cost and commissions to help people during these times and they remembered me big time.

I remember one woman who flat out lied to me about her situation and I cut my commission to help her buy a huge home. She was a dentist and she repaired every single tooth I ever needed having fixed. She referred three clients to me and she was my new best friend. How can you take advantage of the housing situation, never act poor. Never beg, borrow or steal and never loose your ethics.

Invest where needed:

As many people are desperate to sell their homes, they will come to you and ask you to find a buyer. If you see a fabulous deal and you have the funds invest. BUT, first disclose to the seller what your position is and tell them that you are buying the property under market value. Many sellers will want to sell quickly and will agree. Note on the sales agreement that you have disclosed your fiduciary duty to the seller.

This is a time to become a millionaire investor. It is a time, not to take advantage of anyone, but to help those who need helping. There is nothing wrong in investing in foreclosed properties for yourself. What do you mean, you want to stay home and read up on the magazines. Get up and work and work hard and you will succeed.

Hard work, due diligence and ethics will help any agent to succeed. I know, I went from a Southern girl to a owner of the largest independent office in my town. I did it in the worse of conditions and I did it honestly and truthfully. One of the main requirements to get a license is "Honesty and Truthfulness." When you become a Realtor, you testify to this. A Realtor is a member of a board of Realtors not a sales agent.

If you are a member of the Board of Realtors, you can be brought up on charges for acting against ethics and honesty. Realtors have to pay fees every year to belong and they are the cream of the crop, hopefully anyway.

Short Sales and Foreclosures:

It is a time to specialize in short sales and foreclosures. You can send letters out to all families in foreclosure and offer to help them. You can get a list from the title company and they will let you know how to contact them. I went to a seminar once and this guy told me to say simply, "I have someone interested in your home," and sign my name in ink. I received tons of replies and I specialized in short sales. I did take a reduced commission, but a 5% commission of 5 million dollars is a lot better than 6% commission of nothing.

Now is not a time to retire and sit back, it is a time to work longer hours, contact your past clients for referrals, send out letters to foreclosures, cold call on the phone and "walk the walk." Don't sit back and drink coffee, work and work harder. It is possible, I know for sure.