No Bull Agent

Is the First-Time Home Buyer Tax Credit Extension Necessary?

President Obama is expected to sign an extension, approved by the House and Senate, to the June 30 first-time home buyer tax credit deadline.  Why is this extension important and is it necessary?  The simple answer is “yes” to both questions.

The original timeline for the first-time home buyer tax credit, as detailed in our previous post, stated that a home buyer must be in contract by April 30, 2010 and close by June 30, 2010 to be eligible for the credit.  Many first-time buyers positioned themselves to take advantage of this credit which is evident by the increase in sales during the month of April.  The current challenge is getting some of these transactions done in the 60 days previously given between the two deadlines.  This timeline can be especially short considering short sales are still taking, on average, from four to six months to process.

There are many opinions as to why short sales take so long.  The general consensus is that lenders are playing “catch-up” to the mass influx of these transactions, are short staffed and are reworking their processing procedures on the fly.  This extension is important and necessary for these buyers who need the additional time, for no fault of their own, to complete their transactions.  Read the rest of this entry »

Tags: buyer, california, credit, extension, fraud, home, inmate, kaplan, nobullagent, san diego, Tax

Short Sale Reality for a San Diego FHA Buyer

From national to local San Diego news, distressed properties are continually discussed.  In this market, distressed properties primarily include foreclosures and short sales.  For many buyers, the opportunity to own a home is made possible through the purchase of these types of properties.  The prices are typically lower, but there are issues a buyer needs to consider.  Below is a real-life scenario of a San Diegan searching within the short sale market.

A qualified FHA buyer called us approximately nine months ago wanting to purchase their first home.  As an FHA buyer, they were looking to put 3.5% down toward the purchase price.  They came into our office for the initial consultation to thoroughly discuss their needs and wants for their first home.  Once the parameters were set, they began receiving homes matching their criteria.

Many of the homes they received were short sales.  During the initial consultation we discussed the various types of sale and educated them that short sales, in particular, could  take an extended amount of time.  They understood the positives and negatives and we began to make offers on all types of sale, short sales included.  On average, short sales can take from four to six months depending on the timeline for bank approval. Read the rest of this entry »

Tags: buyer, FHA, san diego, short sales

Short Sales…The Good, The Bad and The Ugly

Short sales have become a very common form of distressed property in San Diego County during the past couple of years.  This type of sale often occurs when the borrower cannot pay the mortgage on their property and the bank decides it’s better to take a moderate loss as opposed to foreclosure.  Short sales have unique characteristics that are important for you to know…

The Good:  Short sales are still owned by the current owner and not the bank.  This fact is important because they are typically occupied and show pride of ownership.  In other words, they are often in better shape than their distressed counterpart…the foreclosure.

The Bad:  The short sale process is slow.  Approvals needed by both the seller and the bank, a negotiator being assigned and the inclusion of first and second loans can make short sales take between four and six months to close. Read the rest of this entry »

Tags: buyer, san diego real estate, short sales