Call us first! And be cautious about internet “experts,” where scams abound and bad advice like this goes unchecked: “oh, just do a short sale without any harm to your credit.” But here’s an excerpt from the Minneapolis Star Tribune, by Kara McGuire, that reveals how foreclosures AND short sales can wreck credit.

“Both short sales and foreclosures are considered negative by the score, because our data shows us it’s very predictive of future credit risk,” said Tom Quinn, Fair Isaac Corp.’s vice president of FICO scores. “The claim that doing a short sale is not going to hurt your score is false. It’s inaccurate.”

Read the entire article on RISMedia.

To qualify for this credit, the purchase must be made before November 30, 2009. As the credit is intended for first time homebuyers, those applying for the credit may not have purchased a home in the past three years.

Buyers who accept the credit must also live in the house they purchase for at least three years, or Uncle Sam will require the owner to return the credit.

Qualifications are otherwise simple: single buyers must earn $75,000 or less to qualify; couples may earn up to $150,000. Those fortunate enough to have incomes exceeding thes limits may still be eligible for a partial credit.

Is $8000 a lot of money towards a home? Yes, and no, given the high price of housing in areas like Orange County. But note, that this credit may be enough to cover many buyer’s closing costs.

First Team has always been at the head of the class when it comes to advertising and marketing designed to get our sellers the highest possible price. Because of this commitment and investment…more sellers and buyers end up working with a First Team agent. More buyers see our print and internet ads…more buyers see our signs..which means more opportunities and more SALES! Other agents jump from one company to another seeking “better deals” and better tools, or due offices or companies shutting its doors. We are still, after 20 years of service, right where we began!

Let’s start the next twenty years by looking forward! If you think that now might be the time to begin accumulating real estate for your future, call us at (949) 240-5892, or send us email. Let’s start working on our resolutions for 2009!

Not every account or account holder is eligible. Those of us with self-directed IRA’s are among those with the option of investing our retirement funds in a variety of products other than stocks, bonds and mutual funds.

For many years, it has been possible to benefit from the real estate market through investment in real estate investment trusts (REIT’s). REITs have been attractive for many reasons, including professional management, high dividend payouts, and appreciation of the underlying assets (the shopping centers, apartment buildings, office complexes, and so on). But now, in addition to REITs, investors can take a more direct route to owning the underlying property.

Of course, there are restrictions and rules. But some of the categories of real property, eligible for these programs, include:

• Single-family and multi-unit homes
• Apartment buildings & co-ops
• Condominiums
• Commercial property
• Improved or unimproved land

This article on real estate investing within retirement accounts from Investopedia is a good starting point for more information about this topic. Contact us or give us a call at (949) 240-5892 to discuss your goals and visions for increasing your real estate portfolio while prices are low.

But even as lender restrictions begin to ease slightly, many would-be purchasers are still restricted by marginal or insufficient credit. Alternatives common in the early ‘90’s have reappeared to pick up some of the slack, and to
increase options for buyers and sellers. Here are a couple of those options:

Short Sales: we discussed this option in our previous newsletter. The article on short sales can be found online at danawoods.info.

AITD, or “Subject To” Sales: another ghost from market cycles past. An AITD, or all-inclusive trust deed, in simple terms, is a contract that facilitates a sale from seller to buyer without the buyer obtaining a new loan. The seller sells a property “subject to” the extension of the current financing. This is tricky stuff, so don’t try this without professionals.

Renegotiating Your Current Loan
Some mortgage lenders are modifying the terms of existing loans to assist their borrowers. We can help!

Nothing would bring us more satisfaction than helping a neighbor keep their home. Let’s exhaust all options before choosing to sell under duress.

We’re happy to help your friends and family as well. Call us at (949) 240-5892 for a private consultation on this and other options.

“Be a control freak,” appears to be the answer implied by most pest control company owners. And “control” is the key word, as opposed to “elimination.”

We are all familiar, as homeowners, with the process of fumigation. The termite contractor sends out a crew of guys, and they cover an house with a bunch of tarps, making a tent over the entire house. The residents take their food, their house plants, and pets, and move out of their house for a couple of days. Hey, don’t forget the kids! Nasty, bug-killing gas is introduced into the “tent”, and a couple of days later, all the termites are dead. Right?

Well, not exactly all of the termites are dead, at least not all of the time. The rest of the story is…

One termite out of one hundred will survive a fumigation, statistically, that is…fumigation is considered 99% effective by the industry, and by this research paper on termites, published by my alma mater, the University of Arizona. Your fumigation may kill every termite in your house, but then your neighbor’s fumigation might be ineffective due to too little gas, an overly cold day in Dana Point, and so on…ah, statistics are scary things.

What’s worse for a homeowner is the likelihood that a swarm of the little buggers will visit, and stay, even after you just evicted the last infestation. Here’s the nightmarish scenario: you fumigate on a nice warm Tuesday in September, and on Friday, new guests fly in from over from Apple Street, and decide to stay permanently. You’ve got termites again, and you won’t notice until the new colony begins to show evidence of its “occupation”.

So what’s a homeowner to do? Control is the key word. Some inspectors, including Gary Woolery, owner of Americana Termite, recommend annual inspections. Kill ‘em if you got ‘em, and then kill ‘em again when their cousins visit. By doing so, the catastrophic damage that can occur after years of ignoring the problem is avoided.

Contact us with any questions you may have about termites, especially if you are considering preparing your house for sale. We highly recommend Gary Woolery and Americana Termite. Here’s a screenshot from Americana’s website. Click on it for more information.