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Top 10 Legal Mistakes Homebuyer Make
Top 10 Legal Mistakes Homebuyer Make
- Not realizing that if you don't write a strong offer to purchase, the seller may reject or not respond to your offer.
- Not realizing that if you don't write a strong offer to purchase, you may lose the property to another more highly motivated buyer.
- Not realizing that, without a confidentiality agreement, a seller need not treat your offer as confidential.
- Not understanding when a contract becomes legally binding.
- Entering into an agreemetn before checking title records, liens, and other thigns to ascertain whether the seller will be able to close escrow as scheduled.
- Not understanding the legal implications of loan and inspection contingencies, and other contractual provisions.
- Not obtaining a seller's disclosure.
- Not conducting your own inspections and investigations as the buyer.
- Not fully considering the legal, tax, credit and other ramifications of homeownership, especially co-ownership.
- Not properly handling a claim for property defects discovered after close of escrow.
Source: C.A.R. Legal Department (California Association of Realtors)
A good buyers agent will help guide you through this list and help you understand each and every one of them. Contact Laura Key for more info: 310.866.8422 or Laura.A.Key@gmail.com
Happy Chinese New Year 2013, Year of the Water Snake
This is a great time to get your home in order with Feng shui!!!! The Lunar New Year dates from 2600 BC, when the Emperor Huang Ti introduced the first cycle of the Chinese zodiac. Because of cyclical lunar dating, the first day of the year can fall anywhere between late January and the mid-February. On the Western calendar, the start of Chinese New Year this year falls on Sunday, February 10, 2013 — The Year of the Water Snake.
San Francisco has the oldest and largest Chinatown in the United States and is home to the largest population of Chinese outside of China. The New Year’s celebration is a continuation of a tradition in Chinatown that had been part of the neighborhood since the 1860s, the Gold Rush days.
If you were born in 1917, 1929, 1941, 1953, 1965, 1977, 1989, 2001, 2013, you were born under the sign of the Snake.
Like the houses of the zodiac in Western astrology, the animals of Chinese astrology are thought by many to dictate personality traits or even to impact world events in any year they rule.Snake and those born under compatible signs benefit from good fortune during a Snake year.
013 Prediction for Snake
Snake can expect good fortune in relationships and look forward to a time when they personally or professionally shine. It will be a year when Snake can easily overcome recent setbacks or obstacles experienced in 2012. Even though Snake may not have the income desired in the first half year, financial fortune comes in the second half year.
Snake Characteristics
Self-reliant Snake's characteristics are complex. Snakes don't like to ask others for advice and some see them as cold and calculating – not so, they are just being careful.They need to plan every detail before embarking on an objective. Snake has excellent communications skills, but they are creatures of few words. Quiet and unassuming, they prefer to work alone and are more often in the spotlight for real and lasting accomplishments than for attempts at garnering attention. Actually, they can be a lot of fun when they want to be and they exude a charismatic confidence that is quite sexy.They have the ability to shed adversity like a second skin, and their recuperative powers are legendary.
The list of famous Snakes includes: Oprah Winfrey, John F. Kennedy, Abraham Lincoln, Martin Luther King, Jr., Pablo Picasso, Bob Dylan, James Joyce, Martha Stewart, Kanye West, Pierce Brosnan, Charlie Sheen, Courtney Love, Howard Stern, and Edgar Allan Poe.
Source:
Many Renters Don’t Get Security Deposits Back
Twenty-six percent of renters are denied in getting their security deposits back when they move out, a Rent.com survey finds of 1,000 renters. Landlords cite the biggest reason for withholding security deposits was a tenant who moved out too early. Indeed, 44 percent of the renters surveyed between the ages of 18 and 24 said they broke the lease agreement early and that’s why they didn’t get their security deposit returned. Nine percent of women and 3 percent of men surveyed say they lost their security deposits due to pet damage.
Thirty-six percent of the survey respondents said that their landlords failed to offer an explanation why their security deposits were being withheld. In some places, that’s illegal. For example, in New York, landlords are required to return security deposits -- excluding any legal deductions -- within a certain time frame.
Landlord.com offers up a list of security deposit laws for all 50 states.
Source: “Security Deposit Refund: 1 in 4 Renters Don't Get Their Money Back, Survey Finds,” AOL Real Estate (Jan. 29, 2013)
*No need for this to be an issue! Become a homeowner today, contact Laura Key, Real Estate Agent. Homeownership never looked so GOOD!
www.KeyCaliforniaHomes.com ● Laura.A.Key@gmail.com
Allen Iverson Loses Atlanta Mansion in Foreclosure Auction, According to Report
Just one week after declining an invitation to join the Dallas Mavericks' D-League affiliate as he continues his thus-far unsuccessful pursuit of a return to the NBA and days after a family court judge lambasted his parenting during divorce proceedings, former All-NBA guard Allen Iverson has now reportedly lost his Atlanta mansion to foreclosure. The grim news comes, as it so often does, from TMZ:
Iverson allegedly defaulted on a $1.2 million mortgage which sent the $4.5 million home into foreclosure. He briefly fought off an auction ... but ultimately, he couldn't stop it.
Sources close to the sale tell TMZ ... Iverson's bank purchased the mansion [Tuesday] for $2.5 million.
This isn't the first time a mansion owned by Iverson has gone into foreclosure. Back in March 2011, the six-bedroom, nine-bathroom, 6,848-square-foot mansion he'd purchased in Cherry Hills, Colo., while a member of the Denver Nuggets "slip[ped] into foreclosure" after Iverson quit paying a mortgage on which he still reportedly owed $2,572,914. Iverson also met with some strife when parting with the six-bedroom mansion in Villanova, Pa., he'd owned while a member of the Philadelphia 76ers; it sat on the market for three years after he listed it at $6.3 million before eventually selling for just $2.6 million in 2010.
Iverson's personal finances have long been a matter of inquiry — since his last NBA stint with the 76ers ended in February 2010, there have been reports that, despite earning more than $154 million in salary over the course of his 14-year NBA career, plus plenty more in endorsements, the 2000-01 NBA Most Valuable Player is broke.
Those reports picked up steam last January, when a Georgia judge garnished Iverson's wages to settle a reported six-figure jewelry bill, leading to fast-money/publicity-grab offers for the former 76ers, Nuggets, Detroit Pistons and Memphis Grizzlies guard to play basketball in Puerto Rico and indoor soccer in Rochester, N.Y. They waned shortly thereafter, thanks to the revelation that Iverson actually has tens of millions stashed away in a trust, the lion's share of which he can't access until age 55 (Iverson turns 38 in June), and that he receives a $1 million annual stipend with which he can do as he pleases.
This latest round of reports, however, indicates that in spite of the funds he has available and in reserve, Iverson wasn't able to stay above water with the bank. His continued real-estate-centric turmoil, however, pales in comparison to the strife detailed in the final decree of a messy, long-term divorce between Iverson and his ex-wife Tawanna, which resulted in Iverson reportedly agreeing to a$3 million settlement late last month. The details on the decree:
TMZ.com reported that the [Atlanta family court] judge, who was not named by the website, blasted Iverson, who was married to Tawanna for 11 years. The couple have five children together.
The website, citing the couple's final divorce [decree], reported that the judge wrote, "[Iverson] does not know how to manage the children; has little interest in learning to manage the children and has actually, at times, been a hindrance to their spiritual and emotional growth and development.
"For example, he has refused to attend to an obvious and serious alcohol problem, which has caused him to do inappropriate things in the presence of the children while impaired.
"He has left the children alone without supervision. He has left his young daughters in a hotel room with men who are unknown to the mother."
According to TMZ, the judge ordered Allen Iverson to see a psychiatrist, and to attend Alcoholics Anonymous meetings for a year.
The website also reported that the judge awarded Tawanna custody of the children and that Allen can visit them under certain conditions.
Among them, according to the report, is that he can't drink alcohol within 24 hours of visiting.
All of this, obviously, is awful. As much as I once wanted to see Iverson return to the league on the off chance that he could, just for a moment, showcase the same singular spark of brilliance that made him so endlessly watchable and inspiring on the court during his time at Georgetown, in Philly and (to a lesser extent) in Denver, I've come to accept that his on-court life, at this stage, is likely over; now I only hope he can find some stability and balance in his off-court life. Continually reading and writing about his unsuccessful attempts thus far just hurts my heart.
Source: Yahoo Sports - By Dan Devine | Ball Don't Lie
Call Laura Key with all your foreclosure and short sale questions! 310.866.8422 www.KeyCaliforniaHomes.com
Beginning Your Home Search
Once you've determined that you're ready to buy, it's time to begin thinking about where you want to look. You'll find there are many questions you must answer about the type of house you want to purchase. For example, are you interested in an older home or a new one? How big of a home do you need? Would you like to move closer to certain major roads or freeways? Your REALTOR® can answer many questions about the homes and communities you're considering, and in the meantime, there are myriad resources available for you to begin your research. Location Is Everything
Do you want to live in a particular city or neighborhood? If you're a parent, you're probably considering school districts and other child-friendly options like the proximity to parks. If you're relocating to an unfamiliar area, you can contact the city or county government for information about the community. It's a good idea to investiage crime statistics per neighborhood when you're narrowing down the areas of your home search.
Or perhaps location is the reason why you're buying in the first place -- to move closer to your work, your spouse's work or your extended family, or to live within a particular school district's zone. As you're probably aware, the location of your home can have a dramatic effect on its price.
Size Matters
You may have experienced growing pains in your current home, which prompted you to pursue buying a new abode. Or you're entering a self-employed profession and need a home office. Consider all your space requirements before you start searching for a new home. There's no reason to waste time looking at two-bedroom condos when you really need a four-bedroom house.
Locating Listings
Once you've narrowed down the specifics of your ideal home, where do you find listings? Your REALTOR® has access to thousands of listings in your area through the Multiple Listings Service (MLS). He or she will help you find available homes that meet your criteria. Or, you can start your home search by calling Laura Key at 310.866.8422
Source: CAR (California Association of Realtors)
www.KeyCaliforniaHomes.com ● Laura.A.Key@gmail.com
The American Dream of Homeownership!
In addition, owning your own home provides a sense of security and well-being that's hard to beat. Home is where we raise our families, have friends over for summer barbeques, paint the baby's room pink or blue, and find refuge from the outside world.
Owning a home offers other advantages as well. For instance, as a homeowner, you have control over your environment. Not only can you change your home to meet your needs, but you also aren't subject to the terms of a lease or a landlord. As a homeowner, you can experience the emotional and financial security that comes from knowing what your housing expenses will be from year to year. Unlike rents, which can increase annually, most mortgages have fixed or capped monthly payments. So, as a homeowner, you can have a much better idea of what proportion of your paycheck goes toward your home. Think of it as the ultimate savings plan.
And it only gets better. Homeownership is the primary component in the creation of wealth for many Americans. Data from Harvard University's Joint Center of Housing Studies illustrate not only that the median net wealth of homeowners is 34 times greater than that of renters, but also that over half of that wealth is generated from home equity. As you pay down your loan amount each month, you accumulate equity, a growing ownership interest in your property. If you need funds, you can borrow against this equity in the form of a home equity loan. Further, interest on a portion of home equity is tax-deductible.
Most homes appreciate in value over time and can be a source of income for you, especially if you've lived in your house for many years. When you retire, you can sell your home if you need the funds or make use of a home equity conversion mortgage.
Finally, don't forget about the significant tax advantages of owning your home. Interest on a home mortgage and property taxes are deductible. For most of us, mortgage interest provides the largest tax deduction. Also, a home is the single most important factor that determines whether you will be able to file a return which takes advantage of the wide range of allowable itemized deductions.
Homebuying Means Getting Back To The Basics
Recently, the CALIFORNIA ASSOCIATION OF REALTORS® surveyed homebuyers to find out what they considered to be important in the purchase of their homes. The largest percentage, 27 percent, considered the mere ownership of a home as the most important reason to buy. Moving to a better neighborhood (17 percent), wanting a larger home (10 percent), and realizing the tax advantages of homeownership (8 percent) were other reasons cited for buying homes. Seven percent focused on investment value as their primary motivation for homeownership.
Over the years, your home likely will be the best investment you'll ever make. But more importantly, it will be the place that offers you and your family shelter, security and stability. That's some return on investment.
Ginormous Kitchens: Are They Really a Good Choice?
Huge, open kitchens continue to grow in popularity, getting bigger and bigger. But is bigger really better? Houses with cozy eat-in kitchens are common. But enormous kitchens that consume most of a home’s square footage continue to be the trend.
High-end kitchens can top 3,000 sq. ft. and are becoming more and more popular. Even kitchens in mid-level housing are ballooning, swallowing dining rooms, living rooms, even garages.
Here’s the punch line (courtesy of the Wall Street Journal): Many home owners with ginormous kitchens don’t actually cook in them.
Instead they buy ready-made food to eat at home, and use the kitchen for socializing as friends gather and prepare food together.
Some even have smaller kitchens tucked away. These secondary kitchens, often called “wok kitchens,” hide the mess and smells of meal preparation, while creating the illusion of food being prepared in its larger counterpart.
So what’s the point?
Although, I confess, I completely understand large-kitchen lust.
When we designed our Virginia house 15 years ago, our son was a baby and I couldn’t envision him ever growing up. I wanted a space where I could keep an eye on him while I cooked. So we built a 500 sq. ft. kitchen with space for cooking, eating, lounging by the fire, and watching TV.
And it has its advantages:
- The space is an open, delightful place where I cook, work, watch birds at the window — feeder, and feel embraced by a flickering fireplace.
- The baby survived while I cooked, paid bills, attempted to write.
But the list of cons is much longer:
- Noise: It’s impossible to talk on the phone while someone is watching TV, and our 15-year-old dishwasher is running.
- Mess: When I entertain, piles of dirty dishes and utensils attend the party with us. So, I only invite good friends who love my mess and me anyway.
- Diet: It’s hard to fight fat when you work three steps away from the fridge.
- Temperature control: The room is always drafty and hard to heat without the gas fireplace going.
- Family dinners: Rarely do we eat a family meal without the TV blaring some must-see ballgame.
- Unused space: My adjacent dining and living rooms are obsolete dust collectors. I can’t pay guests to take coffee there.
- Teenagers: The baby is now 16, and would rather eat nails than spend time with Mom, no matter how big the space.
So how big is too big? What’s the “just-right” size?
- Published: December 03, 2012
- By: Lisa Kaplan Gordon
Big kitchens are on trend — but home owners often use them as gathering spaces, not necessarily to cook in. Image: Burdge & Associates Architects Inc.
Credit Info - Are You Able to Purchase a New Home?
For many homebuyers, credit is a big consideration in the buying process. In applying for a mortgage, your credit may be the single factor that opens or closes the door to purchasing the home you want at a low interest rate. You may believe you have a strong credit rating but have never actually seen your credit report. Or perhaps you're concerned that past credit problems will come back to haunt you as you apply for a mortgage Whichever boat you're in, the first step is the same: Obtain a copy of your credit report for a small fee and review it for accuracy. Credit reports are maintained by three credit reporting agencies: Experian,TransUnion and Equifax. It's a good idea to obtain your credit report from all three agencies, since each may contain different information and you don't know which agency will be supplying your report to your lender.
If there is incorrect or missing information that would improve your credit score, report it to the credit bureau. Under the Fair Credit Reporting Act, consumers have the right to review and contest information in their credit reports. Even if your credit report reads exactly like you expected and your credit is in fine shape, going into the mortgage application procedure with peace of mind is worth the nominal fee.
What is credit?
Credit is a record of a person's debts and payment history. Credit bureaus compile individual reports of consumer debt through an array of sources, including credit card companies, banks, the IRS, department stores and gasoline companies, and any other entities granting loans. A credit report is a résumé of your financial performance, with information on your payment standing for all the accounts you've held for the past seven to 10 years (seven years for accounts not paid as agreed and 10 years for accounts paid as agreed).
What is a credit score?
Credit scores, also called "beacon scores," are composites that indicate how likely you are to pay on a loan or credit card as agreed based upon your payment history, amount of debts, length of credit history and types of credit in use. The credit grantor reviewing your loan application compiles your score based on information from your credit report and other data, including your income level.
Fair, Isaac and Company (FICO) developed the mathematical formula for establishing scores. Scores range from 300 (poor) to 850 (excellent), and the rule of thumb is the higher the score, the lower the risk to lenders.
In the past, consumers have not been allowed to view their credit score or be informed of the factors that determined their scores. However, C.A.R.-sponsored SB 1607, signed by California Gov. Gray Davis on Oct. 2, 2000, granted California homebuyers access to their credit scores and pertinent information about what factors determined their scores. The legislation, which becomes effective July 1, 2001, also allows consumers to receive their credit scores when they request copies of their credit files for a nominal fee.
What role does credit play?
Lenders review credit reports to determine debts owed and if they are repaid according to the terms of the initial contract. If you have any outstanding debt, lenders will analyze your debt-to-income ratio and how that debt will factor into your ability to make your mortgage payments.
What do I do when I get my report?
Read through it carefully, paying extra attention to the section on your account payment history.
How do I establish credit?
If you have never taken out a credit card or borrowed money from a financial institution, or if your accounts are young, you can establish credit history by having your rent payments to landlords and monthly payments to utility companies added to your credit report. Credit can also be established by paying off a car, if it’s financed of course.
How do I re-establish good credit?
If your credit report contains negative information, such as frequent late payments, repossessions, collection activity or bankruptcy, you may want to wait to apply until after you've improved your credit record. Rebuild your credit by showing strong payment history in the years following any problems. Most lenders prefer for three years to have passed since a foreclosure on a mortgage and at least two years since bankruptcy. Lenders are willing to forgive past black marks on a credit report if you establish a pattern of responsible debt repayment.
How do I correct a mistake?
Follow the directions of the credit bureau issuing your report. The bureau will contact the source of the information in question and attempt to resolve the dispute. Also, if late payment information is accurate but you have a good explanation (e.g., you were laid off from work or became very ill), you are allowed to add that information to your report.
Source: CAR (California Association of Realtors)
www.KeyCaliforniaHomes.com
Laura.A.Key@gmail.com
Can I Purchase A Home with my Credit
Remodeling’s ‘Value’ on the Upswing
Now that the housing market is back, home improvements are, too. And they’re paying off better than in years past. 2013 is shaping up pretty sweetly for home owners.
First, there were the home owner-centric tax benefits (energy tax credits, PMI deduction,mortgage debt forgiveness) that Congress and the President extended through 2013; and now, we’re seeing that our home improvement dollars are working harder.
After several bruising years, spending on remodeling projects is up and so too is your return on your remodeling dollars. The national average percentage recoup on all 35 projects in Remodeling Magazine’s 2013 Cost vs. Value Report rose since last year.
What a different story from 2012, when the ROI dropped in all but three categories.
The annual report is based on a survey that asks REALTORS® around the country to estimate what specific projects, from adding an attic bedroom to installing new windows, would recoup in their market at resale under current conditions.
Of course, what you recoup depends on the specifics of your project, your market, and when you sell. But the report offers a great bird's-eye view of project costs and returns.
So which projects offer the best value for the money?
Exterior projects like siding, window, and garage door replacements took seven of the top 10 spots in this year’s list.
Makes sense since REALTORS® always say curb appeal is half the battle when you’re trying to sell.
Although it’s not in the top 10, I was gratified to see that the backup generator project is up about 5 percentage points since 2012. One of our bloggers, Lisa Kaplan Gordon, invested in a portable generator last year after one too many storms and power outages, and despite the learning curve, she was glad she did. She had power when a lot of her neighbors didn’t; she even shared power.
Indoors, the top-10 projects include a minor kitchen remodel (involving cabinet refacingand new countertops and appliances), which recouped 75.4% nationally.
Kitchen redo aside, replacement projects, such as installing an entry door or new siding,tend to have a higher cost-to-value ratio than remodeling projects. But now that housing has turned a corner, home owners are stepping up their remodeling plans.
Harvard’s Joint Center for Housing Studies saw 9% growth in remodeling in 2012 and predicts that trend will continue as more and more distressed properties are bought and rehabbed.
The housing group says interest in energy-efficiency updates will keep on trucking, too. It’s the one area where spending on remodeling projects rose during the recession.
I’m betting the revived energy tax credit will add fuel to that trend.
By: Christina Hoffmann Published: January 24, 2013
www.KeyCaliforniaHomes.com • Laura.A.Key@gmail.com
Are Your Neighbors Friend or Foe?
Neighbors wage war every day over blocked views, loud noise, big and small annoyances. Do you have a good neighbor policy? How’s it working out? File this under No Good Deed Goes Unpunished: A Buffalo home owner sued her neighbors for cleaning up her littered patio without her permission. She said they trespassed and discriminated against her. A federal judge disagreed, and forced her to pay $107,000 in attorney fees.
Think I’ll skip that neighborhood’s next block party.
I’ve been a home owner for 27 years and can think of no greater hell than waging war with neighbors. The idea of scurrying to collect my mail so I’ll avoid an angry couple next door makes me want to down a Xanax.
So what do I do? I usually bend over backwards to keep the peace.
Once, I hacked off the tops of my sunflowers because my neighbor complained they blocked the sun from shining on her tomatoes.
For the past two summers, I’ve allowed a twangy lute to drown out summer crickets because another neighbor adds a mid-eastern soundtrack to his nightly pool parties.
And I let it go when the couple across the street snuck into my yard and pruned my willow because they thought it blocked traffic sight lines around the corner.
But I may be in the minority. These days, it seems like neighbor feuds are the rule, not the exception.
- Former Seattle Mariners first basemen John Olerud finally won a long, unhappy battle with the minister next door to remove a Chinese pine that obstructed Olerud’s lake and mountain views. The neighbors had been great friends, and it seems a crying shame they let a pine tree rip them apart.
- Sick of escalating fights over loud reggae music, a Tampa judge sentenced two feuding neighbors to monthly potluck dinners together. Maybe breaking bread will stop the fights: If it were me, I’d bring a taste tester before I bit into the tuna casserole.
- Neighbors complained when a “starving artist” in East Hampton, N.Y., invited any and all tothrow a pint of paint on his house. The artist wanted a free paint job: What he got was angry neighbors worried about property values.
Can’t we all just get along, or at least get some perspective?
I’m not saying hack off sunflowers to avoid a fight — that just worked for me, and my flower-loving neighbor felt guilty for years. But some honest communication, or perhaps a little mediation, could keep your front yard from becoming a battleground.
Have you ever confronted a neighbor? How’d it turn out?
By: Lisa Kaplan Gordon Published: January 8, 2013
www.KeyCaliforniaHomes.com Laura.A.Key@gmail.com
13 Lucky Superstitions for Your Home in 2013
Is 13 an unlucky number? We don’t think so. But just to be safe, we found 13 superstitions that just might bring your home a little luck this year.
1. Never walk under a ladder. This is believed to be the devil’s territory. If there’s no way around it, protect yourself by crossing your fingers or making the fig sign with your hand — closed fist, with the thumb between your index and middle fingers.
2. When you move out of a house, leave the broom behind. Along with the dust and dirt of your old home, old brooms also carry the negative aspects of your life. A new broom signifies a fresh start in your new home.
3. Carry bread and salt with you when you first enter a new home (along with your new broom). After crossing the threshold, sprinkle salt in front of the door to keep evil spirits away.
4. It’s bad luck to carry a hoe into the house. If you do it by mistake, carry it out by walking backwards through the same door — it’ll reverse the bad luck.
5. Stuff fennel, an herb with yellow flowers and feathery leaves, into your keyhole or hang it over the door to protect your home from witches.
6. Paint your front porch blue to ward off ghosts. This superstition, which originated in Southern plantation homes, tells us that “haints,” or ghosts, can’t cross water. Painting the porch “haint blue” would confuse ghosts into thinking the porch was made of water, so they wouldn’t enter the home.
7. Never put shoes on a dresser or table. Bad luck will ensue, according to a Jewish superstition.
8. In fung shui architecture, there should be windows on a house’s east side to face the sunrise. A 27-story home in Mumbai, valued at $1 billion, currently sits emptybecause its owner believes the lack of windows on the east side will bring him bad luck.
9. On Chinese New Year, which will be celebrated on Feb. 10 this year, you shouldclean your home thoroughly to get rid of bad luck and accept new luck into your home. Also decorate your doors and windows with posters featuring the word “fu,” which means good luck and happiness.
10. According to a Norse superstition, placing an acorn on a windowsill will protect a house from being struck by lightning. Window blind pulls decorated like acorns are still popular.
11. Never open an umbrella inside. Doing so would be an insult to the sun god, as umbrellas are commonly used for protection against the sun.
12. Don’t move into a new place on a Friday, Saturday, or rainy day. These days are unlucky and may prevent you from ever truly settling into your new home. According to Indian superstition, Thursday is the luckiest day to move in.
13. Never pound a nail after sunset, or you’ll wake the tree gods. Wouldn’t want to do that.
Have any superstitions to add to the list?
By: Courtney Craig Published: January 8, 2013
Laura.A.Key@gmail.com
www.KeyCaliforniaHomes.com
Thinking of Buying A HUD Home? Part 1
Ok, so it's 2am and you can't sleep. You are flipping through mindless and endless infomercials trying to figure out why the sandman has not visited your home and you come across a commercial that says "BUY A HUD HOME FOR $1 - JUST SEND US $19.95 for a complete list of listings!" Ok, it sounds too good to be true, you figure $19.95 is not that much to spend and I was thinking I am ready to purchase home!
Let me save you the money and explain to you a little about HUD homes. There is no special list and there are homes available for a special price but buying a HUD home for $1 is a way to catch your attention and if there is one, believe me, it is only for a special group of people or organizations.
HUD homes are an excellent way to purchase your first home, heck you can even buy a HUD home if you have purchased before. HUD's are usually FHA approved which means you can obtain a loan with only 3.5% down. And in some areas, HUD runs a wonderful incentive for buyers by offering only $100 for the downpayment. Be aware, that program is not in all states and areas but it is out there! I have closed quite a few! But I digress....HUD homes are generally a good value, most of the time they are priced a little lower than the value in the area, but if it's been on the market a while and they have lowered the price a few times, you have magically walked into a bit of equity! (NICE PERK)
What is the difference between a HUD home and a foreclosure. Not much really...a HUD home is a home that was financed by a government loan and if someone lost a home, they buy it back from the lender so it becomes a government home. Foreclosures are generally, not not always, homes purchased with a conventional loan.
Buying a HUD is a bit different. There is a bidding period. You will need a registered real estate agent to perform the process for you. (Shameless plug....contact me at Laura.A.Key@gmail.com) You do not know how many bids are in the system and once the bidding process is done and you are determined the winner, you will be on a timeline to get the paperwork into the correct people.
But Laura, my Realty Goddess....what about the $1 HUD homes? There are special programs out there to help non-profits and special people who serve our community. The $1 homes (if any) are usually presented to the non-profits. The special programs are usually offered to the following: Police Officers, Teachers, EMT's and Firefighters. Those homes are won on a lottery bidding system.
*This ends Part 1 of "Thinking of Buying a HUD Home" tune in to the next episode where we will discuss the bidding progress and steps to closing the deal.
Contact me with any questions you may have! Laura.A.Key@gmail.com
*By Laura Key, please do not use without permission.
Great Los Angeles HUD Home!
3 Bed 3 Bath 2 Car Garage - $616k - Click Photo Below for Virtual Tour SINGLE FAMILY HUD HOME IN MOUNT WASHINGTON AREA OF LOS ANGELES*** GREAT VIEW HOME IN A SECLUDED AREA OF LA. THIS INCREDIBLE TRI-LEVEL FEATURES 3 SPACIOUS BEDROOMS INCLUDING A LARGE MASTER SUITE, A LARGE LIVING ROOM, DINING AREA AND A KITCHEN WITH DARK WOOD CABINETRY AND GRANITE COUNTERS. FOREVER VIEWS FROM TWO BALCONIES, A NICE PATIO AND A FRUIT ORCHARD. EASY ACCESS TO DOWNTOWN AND THE VALLEY VIA THE 5, 110 AND 134 FREEWAYS. THIS HOME HAS TREMENDOUS POTENTIAL FOR THE CREATIVE HOMEOWNER. DON'T MISS THE BEST BUY IN LOS ANGELES TODAY!
Contact me to schedule a showing!
Laura.A.Key@gmail.com
www.KeyCaliforniaHomes.com
Owner Occupied Bidding Ends Feb. 1, 2013 - Investors can bid after that date!