Understanding The Zestimate (Video)

This is an important thing to understand when looking for a home. Check it out. Understanding The Zestimate (Video)

When I talk with people about Zillow, the first question that usually comes up is the Zestimate.  How do you come up with this number?  Can it be changed?  How accurate is it?

Even though we’ve addressed questions about the Zestimate, we are now pleased to offer a short video, explaining the Zestimate. Actually, we created two separate videos about the Zestimate – one geared for real estate pros and one for the general site user.

Real Estate Humor

These are real comments written in the description section of home listings.

How About These Marketing Strategies!

• Kids Play Rum (And agent apparently drinks it.)
• Main house and carnage house. ( Bugsy Siegel must have lived there.)

• Home Made Hiney rolls served (Do I get Wipes with that?)
• Two minutes to Strip (Can you buy me dinner first?)
• Club foot tub (Getting those special shoes on the tub must have been a killer.)
• Sheik contemporary (A modern house in Dubai?)
• New pole in back yard for outdoor fun (Must be the Bunny Ranch.)
• Bring your fuzziest clients (Including your hairy mother.)
• Special tanks to those who donate. (Wouldn’t an AK-47 suffice?)
• Beautiful Sanitarium for Sunny mornings. (Electro-shock anyone?)
• Major stone coming to the neighborhood. (Ouch, that will be hard to pass.)
• Newer constriction. (Try a colonic.)
• Own a piece of heathen. (Ah…the Bunny Ranch again…)
• House rises above the street. (The David Copperfield Estate.)
• New cemen driveway ( I’ll bet it’s near the Bunny Ranch)
• More Kinky and Quirky:
• Private Studo above garage. (How convenient – give him my number!)
• Large dick for entertaining (Hmmm, does this belong to Studo?)
• Dog runs on one side (Maybe he only has 2 legs)
• Built in stereo and TB (Is this the house with the sanitarium?)
• Bogus room downstairs (Can I submit a bogus offer?)
• Room for bunker beds (Archie and Edith lived here.)
• Seasonal creep runs alongside the road (Is his name, Studo?)
• Stoned patio. (Someone Bogarted that joint.)
• Statutes in garden (Was this a law library?)
• Owen doesn’t work. (Kick his butt to the curb… Then call Studo.)
• EZ access for mountn sports (An elevator to Studo’s pad above the garage?)
• Rede Twice, Use Spell Czech, and Lern Englesh
• “Dance andf art studio” (For classically trained farters)
• Disclosure: Pet ceminary nearby. (For pets going into the ministry.)
• New lightening in pool area (That’s a killer deal!)
• Submit with FUCO scores. (Because this is a FUCO house?)
• Proof of funs needed (Isn’t the pole out back proof enough?)
• Low interest rats (Vermin that are bored easily)
• Seller is a crapenter (He obviously does sh-y work!)
• Rod in bedroom goes with seller, so please don’t ask. (Don’t flatter yourself, Studo!)
• Diamond in the Ruff (Well, pump the poor dog’s stomach!)
• Bar-B-Q Pet in Back Yard (Apparently Ruff didn’t survive.)
• Looking for Hot Buyers (Ugly folks need not apply.)
• Big yard with “squirls and Rabies.” (Sellers frothing at the mouth to make a deal?)
• Comes with dick and dingy (Sean Penn and Jessica Simpson?)
• Drawing for Special Prixe (You ain’t that special, Studo.)
• And This Week’s Favorite: Hind End Recessed Lights (Designed for the place “where the sun don’t shine”)

Great Closing Cost Estimate Guide

This is from MN but gives a really good general idea of what closing costs are and who should pay them……

The parties to a real estate sale may negotiate for who will pay certain closing costs. In the absence of an agreement, local custom calls for each party to pay those closing costs related to that portion of the transaction for which they are responsible. Some of those costs and who usually pays them are described below.

Abstract
An abstract is a summary of the history of ownership of the property. If an existing abstract needs to be updated or continued, the cost will be lower than if a complete, new abstract must be prepared. An update usually costs between $75 – $150. A new abstract in northern Minnesota usually costs between $250 – $400. The cost for an abstract is usually paid by the Seller.

Down Payment
Most lenders require a borrower to pay at least 10% of the purchase price as a down payment but certain loans or government loan programs require less or even no down payment. For example, check out the Home Stretch Program from KOOTASCA Community Action, Inc.

Loan Origination Fee
A loan origination fee is a lender’s fee to a borrower for establishing a new loan. Conventional loan origination fees often range from 1 to 3+ points. A point is 1% of the loan.

Appraisal Fee
An appraisal fee is paid to an appraiser to obtain an estimate of market value upon which the lender will base the loan amount. The cost is about $300-$400. This fee is usually paid by the buyer.

Credit Report
A credit report is an evaluation of the buyer’s credit habits made by a credit bureau for the lender. The cost is $50-$60 and is usually paid by the buyer.

Tax Service Fee
A tax service fee is a charge of approximately $75 by a tax service company to verify to the lender that taxes have actually been paid when due or are due to be paid by a borrower or mortgage company if impounding.

Inspection Fees
Inspections the buyer may choose to have done may include a general property inspection that usually cover foundation, electrical, plumbing and overall construction at a cost of $200 -$300. Roof inspections cost $75-$125. Septic inspections may cost between $200-$400.

Title Insurance
Title insurance covers title defects and even certain unrecorded liens, is based on the loan amount or purchase price and is required by almost all lenders. The cost depends on the amount of the loan, for a lender’s policy, or the purchase price, for an owner’s policy. A title insurance policy for a lender does not insure owners so an owner may want to buy her own policy. The cost for title insurance is usually paid by the buyer/borrower.

Title Examination Fee
The title to the property is reviewed for liens, mortgages, easements or defects. This fee is sometimes added directly to the cost of title insurance or may be a separate item on the settlement statement. This is usually paid by a buyer and costs between $150 – $200.

Deed Preparation
This is like a bill of sale for real estate. This cost ($60) is usually paid by the seller.

Plat Sketch
A plat sketch is a sketch of the boundaries of a piece of real estate used to determine whether buildings or other improvements are actually located on the property and that the neighbors’ buildings or improvements do not encroach on the property to be financed. The cost for a plat sketch (between $60 -$75) is usually paid by the buyer.

Deed Tax
A deed tax is a state tax. The cost is $3.30 per $1,000 of the selling price. This tax is usually paid by the seller.

Miscellaneous Costs & Fees
An estimate of $150 should be considered to cover other items such as recording fees and document preparation, as well as allowing for variations from these other estimates.

Hazard Insurance Reserve
If hazard insurance is to be paid monthly to the lender, a portion of the next premium is collected for the escrow account in order to ensure that enough money is impounded to pay the premium when it comes due. The buyer will usually need to either provide or pay for coverage for the 1st year.

Recording Fees
Charges by the County Recorder to record deeds, mortgages, satisfactions of mortgage or other documents required to clear or transfer title are collected by the closing agent. In most Minnesota counties, the cost is $20.00 for each document and each party may be required to record one or more documents, depending on the transaction.

Prepaid Interest
A borrower often must pay interest from the date of closing to 30 days prior to the first regular mortgage payment.

Mortgage Insurance
Mortgage Insurance usually is required on conventional loans greater than 80% of appraised value. The cost may range from 1/2% to 1% per year and 14 months premium is often collected in advance. This is coverage for the lender in case of default. The premium is paid by the buyer.

Mortgage Registration Tax
Mortgage registration tax is a state tax charged by the State of Minnesota for giving a mortgage. The tax amounts to 23¢ per $100 of mortgage amount. This tax is usually paid by the buyer/borrower.

Tax escrow (impound)
If the new loan is going to have an escrow account for the payment of taxes and insurance, the lender will require from 2-10 months taxes to be deposited at the time of closing, depending on when the next taxes or insurance need to be paid out of the escrow account. These sums are paid by the buyer/borrower.

Closing Fee
Closing fees are paid to the closing agent for closing the transaction. These fees range from $150 – $350, depending on the complexity of the closing. Usually the buyer pays a fee to close a loan if there is financing and a seller pays a fee for the work needed to transfer ownership of the land to the buyer. Each party may hire their own closing agent, though, to ensure that their part of the transaction is properly handled. Or the parties may choose to hire the same closing agent to close both the seller’s and the buyer’s portion of the transaction.

Home foreclosures expected to surge in coming months

Here is a great article from the Chicago Tribune:

Moratoriums from banks, government to expire, setting off new wave of default actions

By Don Lee | Washington Bureau
July 6, 2009

WASHINGTON – — Just as the nation’s housing market has begun showing signs of stabilizing, another wave of foreclosures is poised to strike, possibly as early as this summer, inflicting new punishment on families, communities and the still-troubled national economy.

Amid rising unemployment and falling home prices, mortgage loan defaults have surged to record levels this year. Until recently, many banks have put off launching foreclosure action on many troubled properties, in part because they had signed up for the home-stability plan from President Barack Obama’s administration, which required them to consider the alternative of modifying loans to make it easier for borrowers to make payments.

But with many government and self-imposed foreclosure moratoriums expiring, the biggest lenders indicate they are likely to move more aggressively to clear a backlog of troubled mortgages.

Home sales have been steadying nationally, thanks largely to an abundance of cheap foreclosed properties, government incentives and record low mortgage rates. Housing construction starts have flattened out, helping to bring supply into balance with demand. The rate of housing price declines has slowed as well, even turning up again in some communities.

But rising foreclosures will depress home values, pushing more homeowners underwater. Mark Zandi of Moody’s Economy.com estimates that 15.4 million homeowners, about one in five of those with first mortgages, owe more on their homes than they are worth.

Also, consumer confidence is already exceedingly low — and another jolt to the housing market could further crimp spending, which has been pummeled by the deep recession and persistent weakness in the job market. The latest unemployment rate, for June, rose to 9.5 percent, and many analysts predict that it will keep rising until the middle of next year.

The rapid pace of layoffs is of particular concern. Employers shed nearly a half-million payrolls in June. Homeowners who have lost jobs have little chance of getting their mortgages modified. That puts many homeowners on a collision course with banks that are preparing to take a more aggressive stance on loan modifications.

“Absolutely,” said Chase spokesman Tom Kelly when asked about an impending spike in foreclosures.

Since April 6, Chase said, it had approved modifying 138,000 loans under the Obama program. But an undisclosed number of other Chase borrowers didn’t meet modification eligibility, and many of those homeowners face possible foreclosure.

Separate from that group, Kelly said, Chase is proceeding to deal with an additional 80,000 default borrowers whose foreclosure process had been voluntarily halted by the lender starting late last year.

Bank of America, the nation’s largest servicer of home mortgages, also did not release the volume of likely foreclosures. The bank said it had extended offers to modify loans to more than 45,000 borrowers under the Obama plan. Bank of America spokesman Dan Frahm said the company was projecting a “slow increase” in the number of monthly foreclosures, potentially reaching 30 percent above previous normal levels.

Just how big the foreclosure wave will be is unclear. Much will depend on how quickly lenders can push the process along. It generally takes three months to a year from the time a borrower receives a notice of default to a foreclosure sale, in which case the lender usually takes title of the property.

Government and company reports show that the number of completed foreclosures nationwide slowed sharply late last year and into early this year, largely because of various moratoriums in effect during the first quarter.

Recent reports hint at the next wave of foreclosures.

In the first quarter, 1.8 million homeowners nationwide fell behind on their loans by 60 to 90 days, a 15 percent increase from the prior quarter, according to Economy.com. The research firm said that loan defaults rose sharply as well, to 844,000 in the first three months of this year.

The Obama administration is racing to avert as many foreclosures as possible. So far, more than 240,000 distressed borrowers have been approved on a trial basis under the Home Affordable Modification Program, in which their loans are being reworked so monthly payments are targeted at 31 percent of their gross income, said Seth Wheeler, a senior adviser to Treasury Secretary Timothy Geithner.

“We’re very unlikely to implement another moratorium,” Wheeler said but noted that the Treasury will monitor how many foreclosed homes are dumped into the market, suggesting officials could take other steps to prevent a flood of lender-owned properties.

Lenders Step Up Foreclosures As Moratoriums Expire By Carrie Bay

Foreclosure floodgates may soon give way as the nation’s leading mortgage lenders lift their recent foreclosure suspensions and move those borrowers that are ineligible for federal programs on through the property repossession process.

According to a Wall Street Journal report, J.P. Morgan Chase, Wells Fargo, Fannie Mae, and Freddie Mac all say they have increased foreclosure activity over the past few weeks. The companies have recently rescinded temporary foreclosure moratoriums that were instituted at the urging of lawmakers and regulators to allow time for the Obama administration’s mortgage relief plan to be implemented.

J.P. Morgan Chase says its foreclosure suspension, which commenced on October 31, 2008, and was reinstated with the announcement of the federal housing program, delayed foreclosures for more than 80,000 homeowners, representing $22 billion in Chase-owned mortgages. But now that the moratorium has expired, the bank has ramped up new foreclosure actions.

A Chase spokesperson told the Journal, “We had stopped putting additional loans into the foreclosure process so we could be sure that delinquent borrowers would have every opportunity to take advantage of new initiatives that we were putting in place.” Borrowers who are now receiving foreclosure-sale notices, he said, “own vacant properties, have not been in contact with us and/or do not qualify for the modification programs.”

The Journal reported that a Wells Fargo spokesperson commented that the bank would continue to work with customers on a resolution up to the actual point of a foreclosure sale, but he said, “the expiration of foreclosure moratoriums is having an impact,” and increasing foreclosure actions.

Government-backed lenders Fannie Mae and Freddie Mac lifted their foreclosure suspensions in March, and have begun moving forward with foreclosure sales on investment properties and second homes. Although they have resumed foreclosure proceedings for some assets, both agencies have stated that properties eligible for modification under the government’s Making Home Affordable program will still be covered by a moratorium.

A Fannie Mae spokesperson told the Journal the GSE’s servicers have been instructed that “a foreclosure sale may not occur on a Fannie Mae loan until the loan servicer verifies that the borrower is ineligible for a federal loan modification, and all other foreclosure prevention alternatives have been exhausted.”

Citigroup, which halted foreclosures on loans serviced for Fannie and Freddie up until March 12, told the Journal that it has “reverted to our previous business-as-usual moratorium.” For Citigroup borrowers who are not a “good candidate” for a loan mod and the investor has not approved a retooling of the mortgage, Citigroup says it will move forward with foreclosures, the Journal reported.

According to Alexis McGee, president of the foreclosure tracking company ForeclosureS.com, the backlog of delayed foreclosures from lenders’ foreclosure freezes, coupled with rising unemployment, could distress the housing market’s recovery.

McGee said, “Hopefully, this is a short-term surge caused by months of delayed foreclosures. This is a very troubling turn after seeing some bright spots earlier this year.”

According to ForeclosureS.com’s March report, 175,199 U.S. homes were lost to foreclosure last month – a new monthly record and up 44 percent from the record high set in February – reflecting lenders’ renewed foreclosure activities. The company’s data shows nearly 370,000 properties have been repossessed by lenders so far this year, a 76 percent increase over repossessions in the first quarter of 2008. And there’s more to come – ForeclosureS.com reported that pre-foreclosure filings during the first three months of 2009 topped 600,000, their highest quarterly level since the foreclosure crisis began.

McGee says these high numbers may also be caused by defaults on previously modified loans, citing the mortgage report released earlier this month by the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS). “The report points to the fact that not all previously modified loans result in lower monthly payments, and when combined with today’s economics, the result can be catastrophic for already strapped homeowners,” McGee said.

Propertunity

Again I have an amazing house to tell you about! This is a quirky cool house at the corner of Laurel Canyon and Lookout Mountain. It has tons of land and you can possibly do a lot split. Build another house and sell it to pay for the land and the first house. It has 2 bedrooms and 2.5 baths with natural water spring, pond, pool and huge decks. This one is finally priced right at $699,000. Call me if you want to check it out.

Lookout Mountain House for Sale

Check out this video on the Tax Credit

Here is a quick video on the $8000 tax credit, who is eligible and how you get it.

Is that how it works?

My gorgeous cousin calls me wondering if she did the right thing. Her mentor was talking to her about how he wanted to sell his house and she told him about me. She said, “you have to meet my cousin, she is passionate about selling houses. If she can’t sell your house no-one can.” and she was worried because she gave him my number. “I hope I did the right thing, is that how this works?”

YES!!!!

I called her mentor, whom I had met several times before at family events. He had an agent that he had worked with before but wanted to try to sell it on his own first. I set up the meeting and though he is getting calls, he is not finding the qualified buyers. And his house has no presence on-line, and that is, of course, my field of expertise.

So long story short, I have a new listing on a huge mobile home in the hills above Canoga Park with the most amazing view.

For Sale on Woolsey Canyon Road

Qualifying for a low-down FHA loan

Federal Housing Administration lending is soaring – with good reason. These mortgages are affordable, flexible and available.

By Les Christie, CNNMoney.com staff writer
Current Mortgage Rates

Type Overnight avgs
30 yr fixed mtg 4.86%
15 yr fixed mtg 4.59%
30 yr fixed jumbo mtg 6.28%
5/1 ARM 4.76%
5/1 jumbo ARM 5.18%
Find personalized rates:

NEW YORK (CNNMoney.com) — Mortgages insured by the Federal Housing Administration can be a lifeline for low-income or high-risk borrowers. These loans have tiny down-payment requirements, competitive rates and easy credit-score hurdles.

In fact, terms are so attractive that some may ask why all home buyers don’t use FHA mortgages.

Well, a lot more of them do. Since the housing bust began, FHA lending has soared to account for 20% of the total dollar volume in home loans – up from just 3% in 2006.

There were 384,451 home purchase loans issued during the first two months of 2009, nearly four times the pace of 2008 when 631,649 were issued, and far more than the 278,393 issued for all of 2007. The number of authorized FHA lenders skyrocketed 500% over the past two years.

“FHA stays active in volatile and declining markets, continuing to make mortgage credit available to borrowers, even when private mortgage providers are withdrawing,” said the Secretary of Housing and Urban Development, Shaun Donovan, in Senate Appropriations Committee testimony on Thursday. “During difficult times, it is critically important to have an entity like FHA play this role – offering families access to near-prime rate financing.”

FHA loans are especially attractive for homebuyers with steady incomes who cannot scrape together a 20% down payment because FHA lenders will finance up to 96.5% of the home price.

According to Maryland-based mortgage consultant Allen Hardester, the other attractions of FHA loans include:

* A better loan modification program. The agency has a long history of helping borrowers who fall behind on payments. In two-thirds of default cases the agency figured out a plan to keep borrowers in their homes. And 90% of those mitigations were still working after two years.
* They’re cheap to refinance. FHA loans can be easily – and often cheaply – converted to similar FHA mortgages if interest rates drop.
* Borrowers with weak or limited credit histories may still qualify. Mortgage applicants can have very short credit histories or a late payment or two on their records and still get approved with low interest rates. The FHA guidelines set the credit score minimum at 620, but exceptions may be made for people with even lower scores.
* Low rates. For months, interest rates on FHA loans have been lower than conventional loans. Plus, rates don’t vary with credit score; you pay the same whether you’re a 620 or a 700.

Although these loans target low- and moderate-income Americans, there are no income restrictions. However, FHA does limit the amount that can be borrowed, based on area home values. For example, the most that can be borrowed in a high-cost area such as New York City is $729,750; meanwhile, in Buffalo, N.Y., a purchaser can borrow no more than $276,250. Check the cap limits in your home town.

In addition, borrowers must pay an up-front insurance premium totaling 1.75% of the loan, which goes into FHA’s fund for repaying lenders if borrowers default. So if you take out a $200,000 loan, you would need $3,500 at closing, in additional to normal costs.

Otherwise, there are few restrictions to getting an FHA loan. However, there is a perception that they are difficult to obtain. And they once were.

Few lenders would originate FHA loans during the housing boom because the underwriting and appraisal process was so strenuous. “If there was a crack in the sidewalk, they wouldn’t approve the loan,” said George Hanzimanolis, a mortgage broker in Pennsylvania and past president of the National Association of Mortgage Brokers..

That all changed a few years ago when HUD rethought its guidelines. Now, the process can be nearly as fast and painless as conventional loans.

The one class of borrowers who may be slightly better off with conventional mortgages are ones with very high credit scores who make substantial downpayments. Keith Gumbinger, of HSH Associates, a publisher of mortgage information, said they may save an eighth of a point on their rates.

To find an authorized FHA lender, go to the Department of Housing and Urban Development Web site. To top of page

First-Time Buyers Fair!

It’s A Buyer’s Market!
Tax Credit for First-Time Buyers!
Historically Low Interest Rates!
Foreclosures!
Bargain-Basement Home Prices!

You’ve heard this is an ideal time to buy a home but the process can be
overwhelming, especially in this market. What kind of loan should you
look for and how can you qualify? What can you do to improve your
credit score? And how do you find these foreclosures that everyone
keeps talking about?

Where do you start?

Here: The Southern California Home Buyer’s Fair. Our FREE ‘how-to’
seminars will help you navigate the home-buying process and our FREE
exhibit hall will be packed with experts waiting to answer your questions.

Los Angeles Convention Center
Saturday, April 18, 2009 from 10 a.m. to 5 p.m.
Sunday, April 19, 2009 from 11 a.m. to 4 p.m.

Admission is FREE
Free movie tickets for the first 200 attendees each day!
Visit: www.homebuyersfair.com