Archive for February, 2010

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Mortgage That Matters: A MORTGAGE IS NOT A COMMODITY

By Rick Soukoulis | February 9th, 2010 0 Comments

From time to time I hear people saying that the mortgage loan officer is a dinosaur.  The reasoning is that a mortgage is commodity, that every mortgage has the same criteria, and that they are, therefore, mere commodities.

By extension, the argument goes, borrowers do not need humans involved in the process, and that they can benefit from reduced costs by eliminating the human element from the equation.

When I hear this argument, I wonder if the person ever got a mortgage.

If they had, they’d know that the “human element” is critically important and that many, if not most, borrowers would never be able to buy a house without assistance from the Realtor and the loan officer.

As an example, think about all the subtleties of various loan programs.  Let’s assume a borrower goes online and choose Program 1-A and gets turned down.  He then applies for Program 2-A, Program 3-A and Program 4-A, getting turned down at each of them.

At this point, does he get so discouraged that he simply gives up?

Had their been a loan officer and Realtor involved, he’d have known that of the ten programs offered, he only qualified for the tenth one.  A knowledgeable loan officer could have steered him right away to program 10-A and made certain he chose the right loan program to match his individual situation.

One argument for eliminating the human element also has to do with the reduced number of programs. The argument is that loan officers were needed 2-3 years ago when there were hundreds of programs, and the borrower needed help choosing among all these choices.  Now, they, say, it’s either a conventional 30 year fixed or an FHA 30 year fixed, and anyone can choose between these two.

Again, no one would say this if they’d tried getting a loan recently.  Awhile the number of programs has, indeed, shrunk, it’s a heckuva lot more than two.  And more importantly, while there maybe be fewer programs, they’re all much harder to qualify for.

A good loan officer can help borrowers choose the right program and help them qualify for that.

And no computer program can ever do that as well.

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Hollister Housing Expo Expects a Crowd

By Kristen Para | February 8th, 2010 0 Comments

Tax returns, pay stubs, bank statements, social security, DNA, hair sample, finger prints, spit swab seems to be only a few things a lender is requiring to resolve a mortgage problem these days, but help is on the way!  The City of Hollister Redevelopment Agency is putting on the two day 2010 City/County Housing Expo at the Veterans Memorial Hall at 649 San Benito Street, Hollister to help struggling homeowners figure out if they qualify for a loan modification or the results of a Notice of Default.

The free bilingual (English and Spanish) public event held on Thursday, February 25 from 9:00 am – 5:00 pm will have a presentation from Legal Aid (Real Estate Attorneys) and Certified Public Accountants (C.P.A.’s) on the Foreclosure Process, Renter’s Rights, Loan Modification, Short Sales, and Tax Consequences.  On Friday from 3:00-7:00 pm different organizations will discuss the home buying assistant programs and incentives through California Housing Finance Agency, Chase, Bank of America, and many more.  The more prepared homeowners are with questions and paperwork, the more likely they will get real results with a real person in few minutes time.

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Green Homes are the Future that’s Already Here – Are You In It?

By Tadas Narauskas | February 2nd, 2010 0 Comments

You’ve heard the term “Green Home” by now; perhaps a multitude of times if you have browsed environmental webgreen home wood sites or magazines.  Have you ever wondered what that really means?  Are green home builders simply trying to ride the latest eco-fad or is there really some substance to the word “green” when it comes to homes?  Why should we care anyways?

Essentially, living green implies being aware of the environment around us.  We do our best to consider results of our actions when it comes to our bodies, health and nature around us.  Green homes are no different and there’s truly much more to these homes than the philosophy behind it.

An eco-friendly home is a home that—compared with a standard home—uses less energy, water, and natural resources; creates less waste; and is healthier for its inhabitants.  These homes can either be built green from the start, or they can undergo some alterations or remodels later down the road.

5 KEY COMPONENTS

Truly green homes will take into account the following key principals essential to green building and remodeling:

1.   Design and size: Good site design and just large enough, as opposed to larger is better.  The reality is that a 4,000 square feet home will require more heating, air conditioning and lighting than a 2,000 square feet home. If you really want a sustainable home, choose a smaller size.  A green home will also consider orientation on its site to bring abundant natural daylight and to take advantage of any prevailing breezes.  This obviously works best if you are a building a new home but you can also keep this in mind when shopping for a re-sale or considering improvements on an existing one.

2.   Community connectivity: Located close to work, school, recreation and other basics.  The idea is to consider the “walkability” of the neighborhood and whether you will be able to ride a bike to your best friend’s house.  Less time in the car – less pollution.  More time on the bike or feet – better health.  I’m sure you’ll agree – both of the two will reduce your carbon footprint and increase your overall enjoyment of life.  You can check your neighborhood’s “walkability” score at www.walkscore.com.

3. Energy and water efficiency: This incorporates things like natural day lighting through the use of skylights or daylight tubes, Energy Star appliances, better home insulation, low E rating windows, dual flush toilets, low flow sinks and shower heads.  Increasingly, you will see the use of solar energy to produce hot water with solar hot water heaters and electricity provided by solar panels.  In general, people who live in green homes save money by consuming less energy and less water than standard homes. Over the years, that also adds up to big savings.

4. Material selections: Use of sustainable and renewable materials, where possible recycled and/or reclaimed products. Wood-based features should come from rapidly renewable sources like bamboo, but if tropical hardwoods are used, they must be certified by the Forest Stewardship Council. A green home uses salvaged materials like kitchen tiles and materials with significant recycled content.  Some of the most popular updates to do these days are to use recycled glass countertops for your kitchen and install cork flooring.  Both look and feel amazing.

5. Indoor air quality: This one is obvious – avoiding the use of toxic materials at all costs.  Use only low or no Volatile Organic Compound (VOC) paints.  Keep in mind that materials and even furniture can off gas and slowly intoxicate the inhabitants of a home.  One of the most important things is well thought out ventilation to bring fresh air from outside.  Remember one general rule here: that new house smell is actually not good for you.

As you see, green homes are not some fancy labeled and awkward dome shaped structures that are reserved only to the taste of the hippies from the 60s.   In fact, from outside they may look like any other home but they provide its dwellers substantial benefits like better air, lower bills and a feeling of doing the right thing for the environment.

It’s hard not to be excited about the future of environmentally friendly homes. We are truly at the forefront of green innovation and use of sustainable materials here in California.

Many people run out and protest in front of Congress demanding change but it is our homes that must be at the forefront of our efforts to stem the climate change problem. Our path towards sustainability and a brighter future can truly start at home.

More on Green Homes:  http://SanJoseGreenHome.com

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Intero Insider: Not Just One Bad Apple

By Gino Blefari | February 2nd, 2010 0 Comments

With the world all a-buzz (and rightfully so) about the state of the economy, the real estate market and the spectre of foreclosures circling around us, it’s not at all surprising that there are plenty of people lying in wait to take advantage of peoples’ insecurities. It’s a shame, to be sure, but nonetheless, inevitable.

In the State of California, it’s not going to be tolerated.

In the United States, there are record numbers of homes either in pre-foreclosure (meaning that the homeowners have defaulted on their mortgage, but have not yet been forced from the home) or in outright foreclosure. In California, the percentage of homes in foreclosure is among the highest in the nation.

For a great many people, the prospect of losing their homes is one of the most terrifying things imaginable. More than the fear of not having a roof over one’s head, there are hits that the process drives into one’s self worth. Sadly, there are unscrupulous sorts out there who prey upon these fears and who will stop at nothing to bilk frightened homeowners for all that they’re worth.

As someone who runs a business whose main goal is to put people in homes … and keep them there, the news of this marked increase in shady business dealings is more than a little bit distasteful.

In 2009, there was a 50% increase in license revocations — 672 in total — for those who had engaged in foreclosure rescue or loan modification scams. For the past two years, there had been, on average, 446 revocations.

Get the facts.

If you’re on shaky ground and are at risk of going into foreclosure, there are legitimate paths to getting help. Make sure that you know your rights, and that your lender has the credentials to back up what they’re promising.

Check the website for the California Department of Real Estate (DRE). Once there, you can check the status of anyone’s license — valid, suspended or just plain revoked — or if they are licensed at all.

If you think you’ve fallen victim to a scam, you should know your rights. If the person you believe to have defrauded you is a licensee in the State of California, you may be able to receive restitution, up to $50,000, from the DRE. If the accused is not a licensee, I’m sad to report that there may be little or no recourse.

If you have questions or concerns, please don’t hesitate to ask your Intero real estate professional. We’re here to help.

And if you’re one of those who’re trying to profit from people’s misfortunes? Consider yourself on notice. The State of California isn’t going to turn a blind eye.

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