Considering a Forbearance? Read On!

5 Steps to Follow When Applying for Forbearance

If you’re currently feeling the stress of affording your mortgage payment, or if you know someone who is, there’s still time to get help. For homeowners experiencing financial hardship this year, the CARES Act provides mortgage payment deferral options, creating much-needed relief in these challenging times.

It’s important, however, to understand how forbearance works. It’s not automatic. You need to take action now and apply for the program before these options expire.

A study by the Urban Institute determined:

“Approximately 400,000 homeowners who became delinquent after the pandemic began have forgone forbearance and become delinquent. These borrowers may not know they are eligible for forbearance.”

Thankfully, there’s still time to apply for forbearance, even if you’re just learning about it now. Doing so may be the game-changer you need to stay in your home, just when you need it most. Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association (MBA), explained:

“The increase in new forbearance requests may be the result of additional outreach to homeowners who had previously not taken advantage of forbearance opportunities.”

If you need to apply for forbearance but aren’t sure how to begin the process, the Consumer Financial Protection Bureau (CFPB) published 5 steps to follow when requesting mortgage forbearance:

1. Find the contact information for your servicer

Look at your mortgage statement to find the phone number for your servicer (the company you send your mortgage payment to every month). The Consumer Financial Protection Bureau encourages you to use the number on your statement to avoid scams.

2. Call your servicer

Explain your situation so your servicer can determine your best course of action. Be sure to ask any questions you have about the process.

3. Ask if you’re eligible for protection under the CARES Act

The CARES Act protects homeowners with federally backed loans (FHA, VA, USDA, Fannie Mae, and Freddie Mac). In addition, some private servicers are also providing forbearance programs.

4. Ask what happens when your forbearance period ends

Depending on the plan available to you, there are different options you may be able to consider. Your servicer will help you get a better understanding of what’s available.

The CFPB also recommends asking questions like:

• What happens to the payments I miss?
• What are my repayment options?
• When will repayment be due?
• Are there any fees?

5. Ask your servicer to provide the agreement in writing

A written agreement allows you to see exactly what type of program you’re agreeing to. It also helps you make sure it matches what you discuss with your provider over the phone.

Bottom Line

Help is out there for homeowners in need, but it’s important to apply now while this benefit is still available. The Consumer Financial Protection Bureau says: don’t wait, forbearance is not automatic. It must be requested. Reach out to your mortgage provider today so you can get the assistance you need to protect the hard-earned investment you’ve made in your home.

Lack of Common Courtesy in Real Estate

 A story of the week, and a subject matter I've touched on previously....

Working with a couple of buyers. We've written offers on a few properties. It's a challenging market to say the least but they've stepped up to the plate. Written offers quickly, removed appraisal contingencies, patiently waited to hear back from the listing agents. Me? I'm not quite as patient.

But, that's not even the real story here. 

We wrote on a property that was under-priced and listed by an agent that is from out of the area. Needless to say, per agent, they received 15 offers. Ours was originally written 25k over list price, then we bumped up another 10k, removed our appraisal contingency, shortened up inspection period ridiculously, and tightened up loan contingency as well. 

These days it's a text, an email, not so often a phone call. But, I text agents to alert them that I'm sending them an email if it's offer related and ask for 'Confirmation of Receipt'...always. If I don't hear back, I make a phone call, leave a message.

This particular agent was hot in response when he first put it on the market in the Coming Soon category. He was pretty good when it went active, he was sorta okay when I sent the offer, and just okay when I sent back our final response to their seller multiple counter offer.

After emails and texts I would finally get a response that seller was making a decision today and ours was one of the top ones. Next day, same thing, seller was making a decision today, it "was hard as there were 5 really good offers"....my clients being one of them.

Next day....and, since then, it's been silence. No response to texts/emails, nada. Then, as we expected, the property showed as under contract in the MLS. 

Not a nice way to find out your buyers offer wasn't selected. And, while in Santa Clarita most agents are pretty good about treating people with respect....that other crowd? 

Well, they just don't seem to believe in that old adage. 

And, guess what? I sent him an email saying I saw it went under contract and I presume we weren't the buyers selected? Think I got a reply? Nope, nothing, nada, zero courtesy response .....at......all.

So disappointing. I've never done that. Never ignored another agent. Never not responded to them. And, I never change it in the MLS without having let the other agents know first. So they can tell their clients....not have their clients find out and be heartbroken by a computer screen.

The Bachelorette & Being A Realtor? What?

 A couple years ago I joined a women's group for fun. I started by going to a Bachelor watch party! I used to watch it years & years ago, stopped as it's so silly. 

I became foolishly addicted to it again! And, now I watch the Bachelor AND the Bachelorette! Sheesh!

So, what does that have to do with being a Realtor?

I took a listing 14 days ago. It had been on the market many times with previous agents. I presented to the sellers my ideas of how it should be marketed, price it should be listed at, and the things I would do to get it sold.

I had my photographer extraordinaire take day, twilight, & drone still shots. And, I had him do a video highlighting the home & property. It still was the same home, no wide angle lenses or photo-shopping extreme going on there. But it also showed the property, the hills, the road in. It truly showed the home in it's real, yet best, light.

I prepared an additional document about the home that was put in the MLS. I did the description for the home with a little tweaking from the Seller. 

And, before anyone was allowed to view.....did the buyer know about the dirt road, had they watched the video, and were they willing to put on tennis shoes and actually walk the property with me as their guide? Honestly? If they weren't willing to hike around, it wasn't the home for them.

So, I don't know how many times, I lost count, I was tour guide for the home in Tapia Canyon with the family of deer. A one hour tour. The hills, the views, the meandering paths. I enjoyed it, I got tired for sure, but it was tons of fun for me as well.

Suffice it to say, we got 3 very strong offers in and have just selected the winning buyer last night, significantly over list price.

Again, what does this have to do with that silly rose petals and ring show?

Nothing is worse than telling someone they weren't selected. Because I had met each and every buyer for the tours with their agent, a couple came twice, I developed a 'relationship' with the suitors and I broke a couple hearts last night when I had to tell they they would not be getting the final rose.

But, my Sellers are happy, we only have one contingency to contend with, and I'm looking forward to getting to the final rose ceremony as quickly as possible for my peeps!

Every Buyer Has Heard Alllllll Of These From Me!

5 Tips for Homebuyers Who Want to Make a Competitive Offer

Today’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.

1. Listen to Your Real Estate Agent

A recent article from Freddie Mac offers guidance on making an offer on a home in today’s market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:

“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”

Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer.

2. Understand Your Finances

Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.

3. Be Ready to Move Quickly

According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.

4. Make a Fair Offer

It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:

“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”

5. Be a Flexible Negotiator

After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego. Freddie Mac explains:

“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

Bottom Line

Today’s competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way.

Wild Market, Should You Buy A Home Today?

Is Buying a Home Today a Good Financial Move?

There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with record-low mortgage rates, has skyrocketed the demand for home purchases.

This increase in demand, on top of the severe shortage of homes for sale, has also caused more bidding wars and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.

The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.

Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100:Compared to this time last year, you’ll actually save $87 dollars a month by purchasing that home today, which equates to over one thousand dollars a year.

But isn’t the economy still in a recession?

Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently explained:

“When volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.”

That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said:

“Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”

Bottom Line

With home prices still increasing and mortgage rates perhaps poised to begin rising as well, buying your first home, or moving up to a home that better fits your current needs, likely makes a ton of sense.

An Email I Sure Didn't Want to Get

I've been working with a couple for a little bit now. We went to see something outside the box yesterday. We drove in separate cars. We wore masks and gloves the entire time we were in the home. I take my gloves & mask off inside out and leave any germs tucked inside those little buggers and throw away when I get home.

After that appointment, I went over to see another client. Sanitized my hands as I was getting out of my car. Put another mask on. They were wearing masks as well.

Later last night I received an email from the listing agent from the outside the box home I showed earlier in the day. This was from her seller.

"I want to let you know that I found out today that a person who I had contact with recently tested positive for Covid-19.   My last contact with that person was 37 hours ago.  That person was staying at my house for 6 days prior to leaving at 3:30am Wednesday morning."

So after a few, 'Oh crap' comments, I forwarded the email to the buyers that came in the house, called them as well to alert them. Called my office manager. And, then forwarded the email to the client I saw afterwards and called her as well. She's a nurse and works testing Covid all day long. I said a few more Oh Craps to her and she put me at ease. She reminded me that I did everything right, that I wasn't in direct contact with the Covid person (the house was vacant when we went in), and that per the CDC I would have had to be in direct contact with that person, less than 6ft away and/or have touched something that person touched in the last 15 minutes to be considered exposed.

So, the purpose of this post? To remind you to be vigilant. To follow the rules when viewing or showing homes. To be very careful with yourself and the people you are responsible for. I can't control everyone, but I can control the clients I work with & they are definitely following the rules.

This is going to be around for a while. Make sure the agent you're working with is following the guidelines for the safety of themselves, you, and your family.

That 15K Biden is Suggesting May, or May Not, Be A Great Thing.....

Read an article from one of my housing drips and I'm just copying and pasting here so you know it's not just my opinion but from the National Association of Realtors.

It does, however, make complete sense to me.

"The news over the weekend that former Vice President Joe Biden is now president-elect elicited positive reactions from several real estate leaders who saw the upside for the housing market.

Biden’s housing proposals include a $15,000 first-time homebuyer tax credit and he will focus on fair housing and affordable housing issues. He is also likely to appoint a new head of the Federal Housing Finance Agency.

The National Association of Realtors Chief Economist Lawrence Yun told HousingWire that the $15,000 tax credit is good news since it can go a long way in terms of helping first-time homebuyers and minority households. However, that’s only one part of the solution.

“But that’s not the full story, the full story is that stimulating the demand just by itself I think is insufficient,” Yun said. “Right now the housing market is facing a significant housing shortage. So if we add further stimulus to the demand without addressing the supply… it will simply bump up the prices even higher.”

Yun said that the ongoing housing supply shortage is getting worse and not enough homes are being built to face the demand.

“We simply have not been building a sufficient amount of homes,” Yun said. “We also need to address the supply side, how do we bring more supply? It’s going to take some time, but just adding more fuel to the housing demand without addressing the supply would just simply mean that home prices could accelerate much higher and partly negating some of the benefits of the $15,000 tax credit.”"

Back to me now. I do love tax credits for first time buyers, it's helped many of my clients in the past. But, I am not a fan of it until we get more homes on the market, because, like Yun says.....we'll just drive up prices more with more demand if there is 15k in someones pocket to buy. We Need More Inventory.