Maria Marriott , Mortgage Advisor

Today is a big day for the real estate industry. Here's why...

Today the National Association of Mortgage Brokers will be delivering 117,000 signed petitions from mortgage brokers all over the country to Attorney General Cuomo's Manhattan office. The petitions seek the killing of HVCC - Home Valuation Code of Conduct.

HVCC, which was put in place by Fannie Mae and Freddie Mac along with New York State Attorney General, Andrew Cuomo, is not only driving appraisers out of business but also killing real estate sales transactions throughout the country which doesn't really help the housing recovery. Inexperienced appraisers are performing appraisal inspections on markets they're not necessarily familiar with and driving prices even lower.

The National Association of Home Builders has just released a monthly sentiment survey that says that "fully one third of respondents indicated that they have recently lost sales due to low appraisal values".

There's currently a bill in the House of Representatives (H.R.3044) sponsored by Rep. Travis Childers to institute a moratorium on HVCC, but it's currently stalled.

Have you had any problems with HVCC recently? I would love to hear your story!

To Your Success ~

Maria

Chris is a single father raising two teenage daughters. He had called me from a posting on Craigslist about helping first time home buyers and at that time had no idea if he could buy a home or not. He was wondering what he needed to do to be ready to buy including how much down payment was required. He had no high expectations. He also didn't know anything about credit or what kind of employment history is needed to qualify. I remember Chris saying "I know this is a long shot but I need to try for my daughters' sake." What Chris did know was that it was a great time to buy.

After going through the pre-approval process, Chris didn't believe he could actually purchase a house with very little down payment and could even have the seller credit money towards his closings costs. His financial situation was actually good and his dream of having both daughters living with him in their own home became closer.

He met with a good Realtor I introduced him to who took the time to show him every single property that met his specific needs. After a few weeks, Chris got an accepted offer. And the rest is history.

What I will always remember about this very special experience and about Chris is the look on his face when we gave him his home keys. This man shows up at the property with his two daughters who at the time didn't have a clue they now had a place to call home. You see, Chris REALLY didn't believe he would ever be a home owner and didn't tell his daughters about the house until the keys were in his hands.

The opportunity to change lives in this profession is endless, especially in this day and age...Embrace it and do the best you can possibly do for people.

Times are tough now and our industry is changing BUT Chris' story is the reason why you'll hear me say I have the best job in the world!

To Your Success -

Maria

It's now on the President's desk and just needs his autograph.

President Obama should be signing the extension and expansion of the first time homebuyer tax credit today as part of H.R.3548 - The Worker, Homeownership, and Business Assistance Act of 2009.

Here're the highlights of the new tax credit:

• Remember, you are considered a first time homebuyer and are eligible for the $8,000 credit if you have not owned a primary residence in the past 3 years.
• You must have an accepted offer on or before April 30^th, 2010
• Purchase transaction must be closed before June 30, 2010
• Previous homeowners can claim $6,500 instead of $8,000 (for tax payers filing joint or single) and $3,250 or $4,000 (if married filing separate) as long as they've lived in their primary residence for the past 5 years.
• In order to qualify for the $6,500 credit you must have lived in your primary residence (as claimed on your tax returns) for five consecutive years out of the last eight years.
• Income limits have been raised from $75,000 for single tax payer and $150,000 for joint to $125,000 for single and $225,000 for joint.
• Maximum purchase price of any qualifying single family residence is $800,000.

SPECIAL EXTENSION

There is a special extension for any qualified extended duty armed forces (military, foreign services, intelligence) serving out of Country.

If a person is out of Country on official government duty for at least 90 days during the period after December 31st, 2008, and before May 1st, 2010 - They or their spouse will be eligible for the tax credit extended until the same dates (in Contract on or before April 30th, close on or before June 30th) of the year 2011.

If you plan on taking advantage of this credit I'd suggest that you start NOW. Choose you Team (Realtor & Lender), get pre-approved and get the process started.

To Your Success -

Maria

If you're a buyer, here is some good news for you and it could save you money!

On Monday, October 12, 2009 Governor Schwarzenegger signed AB 957, The Buyer's Choice Act and it's now in place. The Buyers Choice Act allows by law the buyers of foreclosed (bank owned) properties to choose the title and escrow company in their transaction.

Until now, sellers have been requiring a buyer to purchase title and escrow services from a company chosen by the seller as a condition to receiving offers or selling the property. The banks and asset managers no longer can direct buyers to title and escrow companies of their choice.

Here are the highlights:

• It applies only to residential property and covers title insurance and escrow services
• A buyer can agree to accept the recommendation of the seller as to which title or escrow company to use provided that a written notice of the right to make an independent selection of those services is first given by the seller to the buyer.
• A seller who violates the law is liable to the buyer for three times all charges made for the title insurance or escrow service.
• A purchase transaction cannot be invalidated solely because of the failure to comply with the law.

But why the Act? The Legislative findings and declarations state that the recent troubled real estate market has resulted in a concentration of the majority of homes available for resale withing the hands of foreclosing lenders and has dramatically changed the market dynamics affecting ordinary home buyers. The Act says that the potential for unfairness occasioned by the resale of large numbers of foreclosured homes required that protection against abuse be made effective immediately.

If you have any other questions regarding this Act, please don't hesitate to contact me.

To Your Success -

Maria

When getting ready to buy your first home, a down payment can get in the way of making things happen.

One of the great features of a FHA loan is being able to have a family member or a close relative gift you the FULL 3.5% down payment required by the program. But to make sure your transaction goes smooth and there are no "surprises", it's very important to understand how gifted down payment works.

First, make sure the person who will be gifting you the money is a family member or a close relative. Gifts from non-family members are generally not acceptable unless your can document a close past relationship. In other words, you friends or co-workers may not work.

Second, the bank will require proof of "ability to gift" meaning, whoever is gifting you the down payment will need to provide recent bank statements to show they do have the funds (just like a bank would ask YOU if you're bringing your own funds to close). So make sure that person knows what to expect. It will help the transaction go smoother.

Third, the bank will also supply you with a form called "Gift Letter". This letter will state the relationship between the parties, the property address and the amount of the gift. The gift letter clearly states that the funds are a gift and not required to be repaid. You and the person providing the gift will be required to sign the letter.

Last but not least, you'll need to provide proof that funds came out of that person's (who is gifting) account and deposited in to yours. Keep all the transfer receipts and statements.

If you have any questions on gifted down payment or on mortgages in the Sacramento and surrounding areas, please don't hesitate to contact me.

To Your Success -

Maria