Real Estate Information

New rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending) go into effect tomorrow. The revisions implement the Mortgage Disclosure Improvement Act (MDIA), which was enacted in July 2008 as an amendment to the Truth in Lending Act (TILA). It is possible that these new requirements may cause delays in getting loans, and agents should be careful to plan for this when their clients are deciding close of escrow dates. 

The MDIA requires creditors to give good faith estimates of mortgage loan costs ("early disclosures") within three business days after receiving a consumer's application for a mortgage loan and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer's credit history, according to information from the Federal Reserve. The MDIA also requires early disclosures for loans secured by dwellings other than the consumer's principal dwelling, such as a second home.

In addition, the rules would implement the MDIA's requirements that creditors wait seven business days after they provide the early disclosures before closing the loan; and that creditors provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance, according to the Federal Reserve. The rules also would permit a consumer to expedite the closing to address a personal financial emergency, such as a foreclosure.

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The governor yesterday signed into law measures to bridge California’s $26.3 billion budget gap. Over the past several weeks during the budgeting process in Sacramento, C.A.R. vigorously fought a proposal that would have subjected independent contractors to an additional 3 percent withholding on their earnings that was included in an earlier version of the budget.  In the last few weeks, more than 8,000 REALTORS® called their legislators using C.A.R.'s mobilization hotline to voice their opposition to the proposal. Countless others e-mailed, wrote, faxed, or contacted their legislators directly. As a direct result of members’ involvement in the political process, the proposal to withhold an additional 3 percent from independent contractors on their earnings was not part of the legislation signed yesterday. C.A.R. and the Leadership Team would like to thank all members who participated in our efforts to defeat this proposal for a job well done.

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Courtesy of C.A.R

Some 69 percent of all American adults -- fully 88 percent of Internet users -- have gone online to get help with personal economic issues that have arisen in the recession and to gather information about the origins and solutions to national economic problems, according to a new report from the Pew Internet & American Life Project. Top searches relate to consumer bargains, new jobs, skills upgrading, chances to earn extra cash, and general news about the economy.

The Internet ranks high among sources of information and advice that people are seeking during hard times, especially when it comes to their personal finances and jobs, the report said. Among broadband users, the Internet is the top source for material on personal coping strategies during the recession. At the same time, broadcast media outpace the Internet as sources of news about national economic affairs, according to the report. Those hard hit by the recession are among the most avid and wide-ranging Internet users for advice and understanding. Some 52 percent of American adults have either lost their jobs, seen their investments fall by more than half their value, suffered a pay cut, watched their house lose half its value, or lost their job outright during the downturn in the past year.

“Internet users are on a dual quest in this recession” said Lee Rainie, director of the Pew Internet & American Life Project. “They are seeking highly practical advice about how to survive. And they are going online to gain understanding of what went wrong, and what policies might fix the economy. In many cases, the Internet is also a pathway to contributing ideas -- and rants -- about hard times and a source of expert commentary.”

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The DRE recently issued a fraud warning alerting consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert is available in both English and Spanish.  Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 desist and refrain orders. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp.

It is worth noting that not all firms who collect advance fees for loan modification services do so illegally, the DRE said.  In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.

C.A.R. advises members to carefully look at any program that may appear to have a government seal. C.A.R. is not aware of any government programs that have exclusive areas for which you have to pay to participate, and cautions all members to be on the alert for schemes seeking funds from REALTORS® or consumers with no value, or that may be misleading or unlawful.

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Courtesy of C.A.R

Following a 1.3 percent gain in May, and a 1.0 percent rise in April, The Conference Board’s Leading Economic Index™ (LEI) for the U.S. increased 0.7 percent in June. The Conference Board LEI for the U.S. now stands at 100.9 (2004=100).  The U.S. LEI has improved 4.1 percent (annual rate) over the past six months, according to the report.

“The recession has been losing steam since the spring, although very large job losses continue,” said Ken Goldstein, economist at The Conference Board. “Nevertheless, confidence is slowly rebuilding. Financial markets are less volatile. Even the housing market is stabilizing. If these trends continue, expect a slow recovery this autumn.”

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Courtesy of C.A.R

The governor and legislative leaders on Monday reached an agreement to bridge the state’s $26.3 billion budget gap. According to C.A.R.’s legislative sources, the agreement does not include the 3 percent independent contractor withholding that was initially part of the budget package. C.A.R. has been a forceful advocate to eliminate the 3 percent independent contractor withholding proposal. The agreement includes about $15 billion in state budget cuts, as well as $2 billion in cuts to, and another $2 billion in borrowing from, local governments. However, the official budget language is not yet in print. A vote on the budget in both houses is planned for Thursday. C.A.R. will follow up with additional details as they become available.

San Diego is one of the most growing cities in the world. Attracting millions of visitors and homebuyers. San Diego is an exciting, international, and full of opportunities.

Linda Lee, of Prudential California in San Diego, has lived in San Diego for over 25 years and understands buying a home in San Diego might seem to be the simplest of tasks, but can be very stressful. That is why Linda is in the Real Estate business, to help make your move to San Diego easy and problem free.

Linda Lee's relocation services are designed to help those from around the world moving to San Diego, as well as those relocating domestically and even within the city. Linda will be with you every step of the way, helping you get to know the city, its neighborhoods and its attractions. She will make sure that you will be able to find your way around, settle in and fall in love with San Diego! Linda will help you find your first home and will be there for you as long as you need her. Linda is looking forward to welcoming you to San Diego, which is a warm, convenient and friendly city!

Introduction Tours of San Diego and Its Neighborhoods

For those relocating to San Diego for the first time, we will gladly arrange an introduction tour around your new city. Linda loves San Diego and will be delighted to show it to you. San Diego neighborhoods are very diverse, and we can help you determine which one matches your taste and lifestyle best. It is important to potential homebuyers with families to gain an understanding of the San Diego school system, and arrange visits to the schools that will be the best fit for your child or teenager. And, of course, she will gladly address any specific needs and/or concerns you might have.

Property Search and Selection

Linda Lee's expansive real estate services include assisting clients in buying and selling residential real estate in San Diego County. Linda is proud to offer an extensive database of real estate properties, which provides access to all of the San Diego real estate market.

Contact Linda at Linda@MyHomesbyLinda.com or 858-720-9699

If you are interested in buying bank owned/foreclosure properties, I can help you. I have been successful in helping my clients purchase bank owned properties. I routinely work with investors; move up buyers, first time buyers and military buyers. I also work with reputable lenders to ensure your buying experience is a pleasant one. If you are interested in a no-obligation consultation on your real estate options/possibilities, contact me today. As an experienced real estate professional with CPA background, I know how to structure offers that are attractive to the banks.

Market activities have picked up so don't miss your opportunity to buy a home in San Diego! Stop renting and start building your future.

Email me now so I can help you.

Licensed Realtor with Prudential California Realty

Linda Lee

Broker, CPA, CRS, GRI, ePRO

(858) 720-9699

www.MyHomesbyLinda.com

Military families in Southern California are now better able than ever to buy their own homes thanks to new, higher limits on VA loans, according to Linda Lee, Realtor of Prudential Elite, VA and REO property specialists in San Diego. As of January 1, 2009 VA loans are now available with a ceiling much more Southern California-friendly.

As of January 1, 2009, Ginnie Mae (Government National Mortgage Association) announced that it has eliminated the $417,000 home loan limit on VA loans and lenders will now do VA loans up to $1,000,000 —much more realistic for San Diego and the rest of Southern California. This new limit means that luxury homebuyers associated with the military can take advantage of their hard earned benefits, says Lee, who estimates that 20% of the population in San Diego is associated with the military.

“Military homebuyers no longer need a 20% down payment to buy a house over $697,500. The new VA jumbo loan with a higher limit also means that if a military home owner is currently in an adjustable rate mortgage (ARM) and has a little equity built up, he or she may be able to use their VA loan to refinance. That’s monumental,” Lee explains.

As an example, if the homeowner’s house is valued at $950,000 and $750,000 is owed on an adjustable rate mortgage, the owner could refinance into a competitive 30 year fixed rate loan at the same rate as normal VA loans (typically 1-2 % lower than conventional Jumbo programs currently available). This is an option that was not available under the previous limit rules, says Lee.

“The beauty of it is, VA has been doing zero down purchases for eligible buyers since 1944.  Now with the VA Jumbo, military members both past and present who have a small down payment aren't limited to lower priced properties.  A major advantage for people who might be looking to upgrade from their current home, but have limited equity to use as a down payment.  It is exciting to help our military families fulfill their dreams of owning a home in San Diego. That’s a great feeling,” says Lee.