|
Before the real estate bubble, about 1 in every 400 real estate transactions involved seller financing. By the end of 2012, that number was 1in every 50.
Lot of seller financing happens when credit and lending standards are tight. Cash buyers play a big role in the market as well.
If you are selling your home and contemplating whether you should offer a seller carryback because of everything you have read and heard about tight lending criteria, you may want to take a look at a program that Union Bank has for low to moderate income households. Mortgage Consultant Randy Deshler provided the following information:
Union Bank Economic Opportunity Mortgage
The EOM program is designed for low - to moderate - income households who are interested in purchasing a home or refinancing their existing mortgage. EOM helps make home ownership more affordable, with reduced interest rates and no points required. How does it work?
1. Purchase a home and get up to 95% financing, depending on the property type.
2. Refinance and get up to 95% financing with no cash out, and up to 80% with cash out depending on the property type.
3. Reduced origination fee.
4. No Private Mortgage Insurance(PMI).
5. Fixed interest rates.
6. If you have limited established traditional credit, EOM considers alternative credit items such as utility and rent payments.
Who is eligible?
1. The property is located within a designated census area.
2. Annual household income falls below 120% of the median income if the property is located in California.
For details, contact Randy. Ask for a referral if Randy is not in your area.
Randy F. Deshler
Mortgage Consultant
Southern Region
909-838-5620
Randy.Deshler@unionbank.com
We are given our name. Now we have to give meaning to it.
Dwight Norris, Author
Billionaires Sign Charity Pledge
105 wealthy families, led by Warren Buffet, Bill Gates and Richard Branson, have signed the Giving Pledge and committed at least half of their personal wealth to charitable causes. Branson, founder of Virgin Air, is quoted as saying "I never set out to make money. We set out to create things that we could be proud of and try to make a difference. Happily, our children agree with me on this."
CoreLogic Update Remains Optimistic
The CoreLogic Home Price Index is considered a leading source for home price trends in the country. Their December update indicated that "The upward trend in home prices in 2012 was broad based with 46 of 50 states registering gains for the year. All signals point to a continued improvement in the fundamentals underpinning the U.S. housing market recovery."
The Western states of Arizona, Nevada, Idaho, California and Hawaii led the way with the highest home appreciation. By contrast, Delaware, Illinois, New Jersey and Pennsylvania posted home price depreciation.
Try reading my weekly Blog at www.CaliforniaNoteBuyerLLC.com
Gun Control
I'm not sure where I stand on this issue. I can see both sides. Here is an interesting take from W.J. Mencarow:
"There has been an average of 160,000 troops in the Iraq theater of operations during the past 22 months and a total of 2112 deaths; that's a firearm death rate of 60 per 100,000 soldiers. The firearm death rate in Washington, DC is 80.6 per 100,000 for the same period. That means you are about 25 per cent more likely to be shot and killed in the U.S. capital - which has some of the toughest gun laws in the country - than you are in Iraq."
Conclusion: "The U.S. should pull out of Washington."
W.J. "Bill" Mencarow, The Paper Source.
Note Trivia
1. Your note has an Acceleration Clause. This means:
A. You may exceed the speed limit on the street where the property is located.
B. You may demand your buyer make payments faster than the note requires.
C. You can declare the entire outstanding balance due and payable in event of default.
2. You have a note with Interest Only Payments. This means:
A. Your buyer can make payments only if he is interested in doing so.
B. Your buyer will never make a principal payment to you.
C. Your buyer will make interest only payments for a specified period, then pay the entire balance due.
3. You are selling your note. The note buyer informs you he is ordering a BPO. A BPO is:
A. A bacon pizza with onion.
B. A bullet proof overcoat necessary for protection in the property neighborhood.
C. A Broker Price Opinion to evaluate the current value of the property.
See Answers below.
Beverly Hills Lease
If you are going to be in Southern California for a while and are looking for a nice house to lease, you may want to contact Jeffrey Hyland of Hilton & Hyland. He represents a client willing to lease his 17 bedroom, 29 bathroom estate for $600,000 a month. This is the highest lease price Hyland has seen in 30 years of selling high end real estate. It has 50,000 square feet of living space, 3.7 acres, and at one time was the home of William Randolph Hearst. Later, it served as a honeymoon spot for John and Jacqueline Kennedy.
Trump Loses Sometimes Too
The Meruelo Group has purchased the landmark Trump Plaza Hotel and Casino in Atlantic City, N.J. The hotel has a central spot on the famous Boardwalk, but has been one of the worst performing casinos in terms of revenue.
Donald Trump built the 900 room hotel and casino at a cost of $210 million. It opened to typical Trump fanfare in 1984.
Purchase price? $20 million. Ouch!!
If you enjoy this Newsletter, maybe a friend would also. Why don't you forward it to him?
Note Trivia Answers:
1. C
2. C
3. C
How did you do?
Sincerely,
Denny Stanz
CA Broker # 01915404
760-245-5366
760-245-5367 fax
dennystanz@verizon.net
www.CaliforniaNoteBuyerLLC.com
| 
