Carolynn Santaniello

Boston Marathon qualified, Kona Ironman qualified, sub 3:30 Marathoner, let me introduce you to my Santiago Hills neighbor:

Those of us in the hills of Orange have had the privilege of watching Arin Gilmer, a petite mother of 3, quietly work her way into the #53 spot in the USA Triathlon Association. Shortly after moving to Orange County in 2002 she began competing in local races and within a year began ranking in the top 10 of her division. At the 2008 OC Marathon she placed first in the female 34-39 division. This hard working mom proved herself as a winning Marathoner and then took on the rigorous training required to complete an Ironman competition.

Roll forward to 2011, Arin completes Coeur d'Alene, St. George, and the coveted Kona Ironman competitions. Training has become more than a part time job, sometimes requiring 6-8 hours of swim, cycling, and running in a single day. With a preschooler, 3^rd grader, and 6^th grader to shuttle to school and their numerous activities it has been quite an amazing accomplishment.

Much to our misfortune, Santiago Hills will be saying goodbye to this hard working mother and athlete as she returns to her hometown of Monument Colorado. Arin has left an indelible imprint on our community. Her enthusiasm and encouragement for the sport has touched many in the community, including myself. After the birth of my son in 2005 I started training for my first marathon with Team in Training, have been hooked ever since, and couldn't imagine life without running. Arin has been an amazing role model and informal coach, always encouraging us fellow athletes no matter where we are in our abilities.

What a gift we have had. Thank you, Arin Gilmer, for representing our city and County of Orange with speed, agility, grace, humor, and friendship. Your imprint on Santiago Hills lives on through those of us who you have inspired to run, ride, and swim. Cheers to new adventures.

2011 is the year of CHEAP MONEY! With interest rates so low it is a great time to buy a home, or refinance a current loan. Recently, I held a Home Buyer's Seminar where Mr. Jeff Parks, Bank of America Loan Officer, spoke about current financing options. Watch his video about Types of Loan Programs:

GOVERNMENT LOANS:

• -FHA
• -203 K "rehab" loans for homes that won't qualify for financing or upgrades financed
• -VA
• -Fixed Period "Hybrid" Arm
• -15 and 30 Year Fixed
• -GIFT FUNDS can be used
• -LOW DOWN PAYMENT 3.5%/NO DOWN PAYMENT
• -NON OCCUPYING CO-BORROWERS
• Current Maximum Loan $729,750

CONVENTIONAL LOANS

• -Higher down payment (minimum 10%, normally 20%, non-owner occupied minimum 25%)
• -Fixed Period "Hybrid Arm"
• -10,15 and 30 Year Fixed
• -"Conforming" Maximum Currently $0-417,000
• -"High Balance Conforming" $417,00-$729,750
• -"Jumbo" Over $729,750

The maximum for FHA loan limits and Conventional Conforming limits is set to expire 9/30/2011 and will be reduced to $625,000 if it is not renewed. It is not expected to be renewed, so if you are considering a home purchase that will require a loan limit over 625K, you may want to get locked into your loan by the end of summer.

A couple of programs that Parks did not mention are the FNMA HOMEPATH financing program and the CalSTRS program for California public school/district/community college employees.

Homepath is for properties that are owned by FNMA

• Require only a 3% down payment
• Allow a larger seller paid closing cost contribution
• No appraisal necessary
• Condo association requirements are looser

CalSTRS for CA Public School/District/Community College Employees

• 3% Down payment required with at least 1% direct from borrower
• 80% First mortgage and 17% Second mortgage
• Maximum loan limit $650,000 1st and 2nd combined
• Second loan is deferred for first 5 years

It is imperative to know all your options before setting out on your home search. These programs are constantly evolving so be clear on what works for you, your budget, and future life decisions.

Share the word.

Let me introduce you to a very misunderstood and often despised Real Estate transaction: Short-Sales. Some Realtors run from them, some buyers run TO them, and many homeowners are overwhelmed by them. Unfortunately, Short-Sales will be here to stay for several years to come, so it is time to get to know them.

Each homeowner's situation and each Short-Sale transaction have its own nuances and variables. There may be a playbook but it is rarely followed and it is always being rewritten. In this series I will break down the components in their simplest forms starting with foreclosure timelines in California.

Foreclosure Timeline:

•· 1 Month late on a payment - Phone starts ringing

•· 3 Months late on a payment - Lender CAN Post a PUBLIC Notice of Default (Posted on property and in newspaper)

•· 6 Months late on a payment - Lender CAN Post a PUBLIC Notice of Auction

•· 7 Months late on a payment - Lender CAN Auction your home (In CA these are done on the county courthouse steps where either a private investor purchases the home or the bank takes it back)

•· 8 Months late on a payment - After your homes has been sold at auction you CAN legally be evicted

You probably noticed the word CAN. Due to the high volume of non-paying homeowners lenders are frequently slow to react, however, both sellers and buyers need to be aware of the timelines. If a homeowner is trying to do a loan modification the clock CAN be slowed. On the other hand, even if a lender approves a short-sale the right hand may not be talking to the left over at the bank and the home CAN be sold at auction. This doesn't happen very often, but the point is there are no certainties (yet).

Stay tuned for Take Two. Share the word.

Anyone who knows me knows that I am obsessed with running and real estate. In many ways these two seemingly unrelated topics share much in common.

Marathon training requires many months of building strength and endurance to run a 26.2 mile race. It is essential to be dedicated to your goal of crossing the Finish Line!

Likewise, purchasing a home starts with laying the foundation.

• Creating a financial plan that starts with deciding on down payment amount and then securing financing with a direct lender
• Mapping out where you want to live and determining your wants, needs, and essentials in the home and neighborhood.

Next comes the weekly runs, or the home search.

• Historically low inventory means it may take multiple months to find a home. Fourth quarter 2009 sales pace would take only 3 months to sell all homes on market (norm is 6-9 months): http://www.trendgraphix.com/CAR/charts/7GBL_F001_01_01_0135_1_38_Bed0111_FB0111_HB0111_YB0132_75_07_200912.htm
• Low inventory means it may take several offers (Yes, I know it may be hard to believe, but MANY Orange County homes receive multiple offers).

Lastly, the perils and pitfalls of Escrow require commitment and a positive attitude so you can make it to hear the words: "Escrow has closed!"

Negotiating a short-sale is much like training with an injury. The race may not be finished, but you keep doing what is necessary with hopes that your body/the bank will cooperate.

• Short-sale planning begins with a "seller's hardship package" and a buyer's offer that is submitted to the bank who holds the mortgage.
• The bank approval process can take 2-6 months. Similarly, it takes 3 -6 months to train for a marathon.

Like running with an injury, short-sales require patience and perseverance because you have no idea what obstacles may lay ahead.

Plan your path and stay true to your goal, your race, and your real estate decisions.

Run strong!

Like it or not, the Federal Government has extended and expanded the Home Buying Tax Credit. Considering the frenzy of home buying we have experienced in Orange County for the past few months it is clear that demand will remain high through the traditionally slow season. Homes often receive multiple offers even in the $600K to $800K range. Expanding the Tax Credit will bring more higher income Buyers into the market, thus increasing demand for higher priced homes.

Since a large portion of the inventory listed for sale are Bank Owned, or Short-Sales that may not even result in a close, Buyers have few choices. Seller's should be taking advantage of the low inventory and high demand for the expanded price points while Uncle Sam is pointing his finger at YOU!

The Tax Credit details are as follows: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

• First Time Home Buyers (not owned a home in the past three years) get up to $8000 tax CREDIT, or 10% of home price.
• Move-up Buyers (owned a home in 5 of the past 8 years) get up to $6500, or 10% of home price
• Qualifying maximum incomes for both CREDITS are Adjusted Gross Income of $125,000 Single and AGI $225,000 Married
• The home must be in contract by April 30, 2010 and close by June 30, 2010.
• Credits-NOT deductions. If Buyer owes IRS $1000 they get a check back for up to $7000

Sellers and Buyers of ALL shapes and sizes Uncle Sam wants YOU. Share the word.