Lorraine or Loretta Kratz-Certified Negotiation Experts,

San Diego Gas & Electric is restructuring and raising the rates come January 1, 2010. The reason for the restructuring is to charge those that use the least amount of electricity with an increase in there rates and lower the rates for those who use the most.

Beginning Jan 1, 2010 SDG&E wants to increase rates 5 % for customers who use less than 130 percent of "baseline" usage, representing the minimum amount of power a family needs.

SDG&E, says electricity for those customerrs is subsidized by those who pay more than twice as much for the power use beyond 130% of the baseline. Those higher rates would go down 4% to 5%.

California Public Utilities Commission is reviewing the plan.

An initiative has been announced by Fannie Mae dubbed Deed for Lease which will offer leasing your home back from Fannie Mae for up to 12 months with the possibility of renewal as long as the homeowners are willing to deed their property back to the mortgage giant and meet other conditions imposed by the program

To qualify, homeowners must have had their homes financed with mortgages guaranteed by Fannie Mae and must be ineligible for a modification of their loan terms.

Today, options to purchase, lease options and lease purchase agreements are three different financing documents. The variances are state specific and not all states have identical laws. Before entering into an agreement with a seller, buyers should obtain the advice of a real estate lawyer or a knowledgeable real estate agent/broker. The information below is an overview and is not meant to be construed as legal advice.

Basics of an Option

•· Buyer pays the seller option money for the right to later purchase the property. This option money may be substantial or as little as $1.

•· Buyer and seller may agree to a purchase price now or the buyer may agree to pay market value at the time the option is exercised. It is negotiable. However, most buyers want to lock in the future purchase price upon inception of the option.

•· The term of the option agreement is negotiable, but the common length is generally from one year to three years.

•· Option money is rarely refundable.

•· Nobody else can buy the property during the option period.

•· The buyer can sell the option to somebody else.

•· If the buyer does not exercise the option and purchase the property at the end of the option, the option expires.

•· The buyer is not obligated to buy the property.

Basics of a Lease Option

•· Buyer pays the seller option money for the right to later purchase the property. The lease option money may be substantial.

•· Buyer and seller may agree to a purchase price now or the buyer may agree to pay market value at the time the option is exercised. It is negotiable. However, most buyers want to lock in the future purchase price upon inception of the lease option.

• During the term of the lease option, the buyer agrees to lease the property from the seller for a predetermined rental amount.
• The term of the lease option agreement is negotiable, but the common length is generally from one year to three years.
• The option money generally does not apply toward the down payment.
• A portion of the monthly rental payment typically applies toward the purchase price.
• Option money is rarely refundable.
• Nobody else can buy the property during the lease option period.
• The buyer generally cannot assign the lease option without seller approval.
• If the buyer does not exercise the lease option and purchase the property at the end of the lease option, the option expires.
• The buyer is not obligated to buy the property.

Basics of a Lease Purchase

• Buyer pays the seller option money for the right to later purchase the property. This option money may be substantial.
• Buyer and seller agree on a purchase price, often at or a bit higher than market value.
• During the term of the option, the buyer agrees to lease the property from the seller for a predetermined rental amount.

The term of the lease purchase agreement is negotiable, but the common length is:

• generally from one year to three years, at which time the buyer applies for bank financing and pays the seller in full.
• The option money generally does not apply toward the down payment.
• A portion of the monthly lease payment typically applies toward the purchase price.
• Option money is nonrefundable.
• Nobody else can buy the property unless the buyer defaults.
• The buyer typically cannot assign the lease purchase agreement without seller approval.
• Buyers are often responsible for maintaining the property and paying all expenses associated with its upkeep, including taxes and insurance.

The buyer is obligated to buy the property

All Manufactured Home financing is going away for at least the foreseeable future. If you have a deal in progress and it's a manufactured home, please call your loan agent. It might not be able to be closed as of this week

New Anti "Spinning" Rule will stop any non owner purchase if the property was previously purchased by an investor in the last 90 days. Many lenders are extending the rule to 180 days. This started last week and is not going away anytime soon.

The U.S. Department of Justice has obtained a record $2.725 million settlement against Los Angeles apartment owners for alleged rental discrimination. In a lawsuit brought in August 2006, the Justice Department claimed that Donald T. Sterling and others engaged in discriminatory practices, such as refusing to rent to African-Americans, Hispanics, and families with children, refusing to rent to non-Koreans in Koreatown buildings, misrepresenting the availability of rental units, and preparing internal reports of tenants' racial profiles.

Under the name of Beverly Hills Properties, the defendants in this lawsuit own and manage about 119 apartment buildings containing over 5,000 apartment units in Los Angeles County. Their agreement to pay $2.725 million is the largest monetary settlement the Justice Department has ever obtained for rental housing discrimination. The bulk of the money will be placed in a fund to pay tenants harmed by the defendants' discriminatory practices. The defendants must also take certain measures to ensure non-discriminatory practices, such as obtain fair housing training and monitor their employees' compliance with fair housing laws over the next three years.