Fremont Real Estate Blog

A client was asking my how they could reduce they MAGI (modified adjusted gross income), below the $150,000 threshold for Married Filing Jointly. The answer was I don't practice as a CPA anymore. Having said, that I was still curious, so the the only way to reduce MAGI which is AGI (line 37 on the bottom of page 1 of the 2008 form 1040) is to reduce taxable income (defer income or increase 401k withholding) or increase the deductions to get to AGI (which are IRA, SEP and Healthcare account deductions). Take a look at the 1040 Form Or one could choose to quit working or take some unpaid time off - hey it's worth considering. If anyone other ideas, please do share. FAQ on the $8000 credit

On July 30th the new Truth in lending rules come into play. What they serve to do is give the buyer/borrower more time to digest information before expenditures can be charged for appraisals or loans funded for closing. What the real impact to the borrower will be is that now it'll be harder to close a loan in 30 days. You'll be seeing it now takes 45 days to close a transaction. The key changes are: All loan disclosures must be produced within 3 business days of receiving the application back from the client All disclosures must be updated and sent to the client again within 7 days prior to the closing Saturdays now count as a business day. No fees may be paid until the Truth and Lending Disclosure is by the bank to the borrower (not the loan officer), which means no ordering the appraisal until 3 days after the client has receive the new TIL, The lender may only take a nominal credit report fee upfront. The truth-in- lending form must be updated every time the interest rate c...

The under $400k market is still bustling. The multiple bids started around February when rates were at their lowest, and I thought it would have cooled down by now, but it hasn't. Inventory of homes available remains low. The number of bids a h0mes gets is anywhere from 5 to 40. I was looking at a home in Union City's Pioneer district priced at $339,000. While I was waiting for my client to show up, another buyer asked if I could let them in. I said, sure. As soon as I walked in, I recognized immediately the property was a money trap, and possible health hazard. I said, I wouldn't let my buyer purchase this property. Besides the stench of urine and feces , the property needed a new kitchen, new bathrooms, wood on the exterior in many spots, new flooring, possible a new roof (based on the water marks on the ceiling), and I'm certain the pest report would have plenty of items. This buyer however was adamant it was worth at least $350,000 in it's current condition. I...

I've had two clients ask me about the Tsunami of impending foreclosures today. So let's look at the numbers as the stand today. If you compare REOs (currently for sale foreclosed on), auctions, the ratio is about 2:1 or a 100% increase. And Pre-foreclosures are running twice the auction rate. So the supply will increase. However now compare supply to the current burn rate. If you think of pending sales as the rate at which supply is being eaten on a monthly basis, demand is greater than future supply. The only market that may have an oversupply is Newark. These numbers are not perfect since Foreclosure Radar doesn’t capture every pre-foreclosure. Also Pending Sales includes Short Sales which can last for more than 30 days, so consumption is exaggerated, and I'm not factoring in the supply of regular sales in the market. If you've been shopping however, you know there are more buyers than properties that suit their needs. I'm not concerned about the "much talked...

The graph shows default and foreclosures are up from April 2008, however they are lower than last month's total. March 2009's numbers also reflected the lifting of the foreclosure moratorium by many lenders, but then new foreclosures rules were implemented to further delay foreclosures. I would expect additional REO's to come online in the coming months.

Just when you thought stupid lending standards had disappeared,  the government is bring back the ability to buy a home with zero down, so that people who have no ability to save can get the money they need for a 3.5% downpayment FHA loan.   http://money.cnn.com/2009/05/29/real_estate/tax_credit_as_downpayment/index.htm?section=money_topstories   How sad!!!     Sunil   Check out my new Foreclosure Search engine      

Rates have jumped up .375% in the last 3 days. here's an explaination of why