San Jose Real Estate * REALTOR ® * Richard Gonzalez

Mortgage Protection for Silicon Valley homebuyers

The California Association of REALTORS has decided to extend this offer to 2010 and while the media continues to announce the Federal tax credit I am concerned that message is not getting out to everyone. Most buyers are unaware of this great program for first time homebuyers and have not registered themselves for this complementary program.

I have even talked to REALTORS who are unaware of this program and should be advocates for this piece of mind. The program is available to all first time homebuyers who used a REALTOR and are member of the California Association of REALTORS.

If you already closed escrow you can still take advantage of this program by filling out the application and including a copy of your purchase contract and HUD 1 final closing statement.

Whats the benefit you say?

Through the C.A.R. Housing Affordability Fund’s Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months.

Who Qualifies?

• TO QUALIFY FOR THE MORTGAGE PROTECTION PROGRAM APPLICANTS MUST: ·
  
• Be a first-time home buyer – someone who has not owned property in the last three years (includes co-buyer).
• Open escrow April 2, 2009, or later, and close on or before December 31, 2010 (purchase agreement cannot be dated before April 2, 2009)

• Use a California REALTOR® in the transaction (fee for referral does not qualify)

• Purchase the property in California

• Be a W-2 employee (cannot be self-employed)

Fill it out sign it, have your REALTOR sign it and mail it. It’s as simple as that. Don’t forget to add this to your list when you close escrow.

http://www.car.org/members/hafmainpage/carhafmortgageprotection/

Buying a Silicon Valley home in 2010 can be a challenge but if it’s on your list of resolutions then here are a few tips that you should know to prevent you from falling off the wagon during the process.

Short Sales

The buzz of the 2010 real estate industry is Short Sales. I attended a hand full of conferences last year and short sales were the topic of discussion on everyone’s mind including all the major banks and asset managers of REO properties.

In November Bank of America / Countrywide for instance partnered with equator.com a REO management tool used by REALTORS and asset managers to handle the sales of foreclosed properties. The management system is a task based system that helps to speed the processing of REO’s and now short sales beginning with Bank of America.

Equator.com has now begun to reduce B of A’s timeline for short sale approvals from six months to 45 days. Lightning fast by our experience negotiating short sales with Bank of America over the past two years. This trend will continue as investors look for ways to streamline the slow daunting process we have grown accustomed to in a short sale.

TIP: Short sale buyers should always investigate who the note holder is before making an offer. Knowing who the note holder is will help set your expected timeline for a successful close of escrow. Wachovia short sales are lightning fast because they own the loans and have decision makers in every county. Others like WAMU can be a challenge to say the least and are currently taking up to 5 months for a short sale approval once you are in contract.

REO

Inventory levels are very low but there may be a significant influx of REO properties from shadow inventory that banks are apparently holding. Some even continue to speculate that we will have a tsunami of inventory hit the market based on data from the Royal Bank of Scotland that shows over 3 million home owners 90 days past due and half of them are in foreclosure.

The reality is that the Silicon Valley will not likely see a large influx as a result of this inventory. Most of it is centered around the conforming $417,000 and lower price range. Waiting for REO’s to fill the void in Silicon Valley may keep a buyer on the sidelines for most of if not all of 2010.

TIP: A FHA 203k loan is an excellent loan that includes the cost to repair and remodel a REO home. It really is a great product and should be your primary loan option if you are intent on purchasing an REO home. 203k loans are great negotiation tools because the seller only has to repair health and safety issues leaving you room to negotiate while most other buyers are unable to participate.

Presentation of your offer

I recently listed and sold a home in Gilroy and received 40 offers on the home. During the process of evaluating the offers with the sellers I did my best to help the buyers agents in presenting their offers in hopes of giving every buyer an opportunity . What I realized is that merly making an offer is not enough and helped me make important adjustments in the way I submit offers.

Your offer should always have the following additional information:

• Pre-Approval letter – Preferably from a well known financial institution or an approval from your mortgage broker with the lenders name that you intend to use. If possible a conditional approval would be better but some lenders will not provide that unless you are in contract.
• Proof of funds to close – It’s critical to show the seller and the listing agent that you have the financial means to close escrow.
• A cover letter to the sellers – A letter with a picture of your family introducing yourself and telling them how much you love their home and will continue to give it the love they did. Provide details about your appreciation of the sellers upgrades and if possible any similarities that you may have with the sellers(kids, job industry, neighbor relationships, ect.)
• Comparable sales - Have  your REALTOR provide a list of three sold and pending comparables to make your case why your offer should be considered. Firing off low ball or high offers to a seller will most likely put your offer on the rejected pile because you submitted an offer with a purchase price that will not appraise.

TIP: Communication between your REALTOR and the listing agent is essential. Establishing a relationship with the listing agent is critical and can increase your chances of successfully negotiating with a seller.

Most buyers are taking up to a year to get into a home. Don’t be discouraged if you are still looking in September, the persistent buyer always finds a home.

Happy New Year and happy hunting for your home in 2010.

Last Tuesday my daughter Jelena and I decided to go out and have dinner at Pasta Pomodoro because she loves pasta.  We arrived at the Santana Row location about five minutes from my office and found that we had to wait fifteen to twenty minutes to be seated.

Once we sat down we promptly had warm bread and olive oil for dipping; Jelena was starving and this helped to take that hunger edge off while we ordered.

We ordered from the kids menu and the specials of the day menu. Jelena had plain spaghetti pasta with butter and I ordered the Salmone Cannellini for $13.95 along with two beverages.

The portions are enough to get full but not so much that you have to lug home a huge doggy bag.  Jelena had vanilla ice cream for desert followed by the bill.

To my surprise the bill was less than $20 dollars with tip. Pasta Pomodoro currently has a “Kids eat free! “promotion on Tuesday nights.

If you don’t feel like cooking or you want to break away from the normal routine at a nominal cost then I suggest you try Pasta Pomodoro at Santana Row.  The food is good and its a perfect environment to just have a nice meal and a good conversation with your kids

NOTE: The manager acknowledged that the promotion has been in effect for a while now and that it could be removed at any time. kids eligible for this promotion are up to the age of 7 or 8.

The promotion is also for Dine-in only and cannot be combined with any other offer.  Available at participating locations, please call ahead to confirm promotion.

www.pastapomodoro.com

Dinner Menu click here

Michael and his son stand in front of their new home

I met Michael years ago and would say hello to him from time to time. Little did I know that Michael would inspire me in the way that he did when I handed him the keys to his new home.

You see about a year ago Michael had a stroke and it changed his life. Michael is a hard working single parent of two great kids. His Daughter just started college at SFU and his son lives with Michael.

The best part of this story is that Michael triumphed over his predicament and ultimately made changes in his life to prevent a reoccurrence of a stroke.  One of the decisions that Michael made was to become a homeowner early this year and as a result contacted me. Michael was looking for a home under$250,000; a challenging task especially because this has been the hottest price range in 2009 and the competition is fierce.

After months of looking and making offers we were successful in finding a cool little 2 bed 1 bath remodeled home in Gilroy. The story doesn’t end there; we now had to navigate though the short sale gauntlet once we were successful in getting into contract.

Among some of the challenges we faced were appraisal issues and loan approval hurdles to overcome with the seller’s Short Sale investor. The entire process took three months to close escrow.

Michael’s faith and patience played a large role in helping him realize his homeownership dream. Thank you Michael for showing me that prayer, perseverance, and patience are the keys to life.

I’m so happy for you and your family. You are a wonderful role model and a hard working father. This will be a very happy Christmas for you.

Note: Michael is eligible for the Federal tax credit and I signed him up for the complementary California Association of REALTORS housing affordability fund. The C.A.R. fund is available through the end of the year and pays his mortgage up to $1,500 for six months should Michael lose his job or as a result of an injury. The only requirement is that Michael purchases his home with the assistance of a REALTOR.

The reason you want to go to Chachos is for the Tacos. I understand that people want a variety but the bottom line is GO FOR THE SPECIALTY TACOS and don’t bother ordering the ordinary Asada, Pollo, or Al Pastor.

Tapique, Hawaiianos are my favorite among the ten different Chachos special  tacos . Those willing to have the special tacos with all the extras will be rewarded with a taste like no other. Open until 3am for those folks who are hanging out at the Cardiff Lounge.

Mariachi and other happy hour entertainment is a common occurrence on Fridays.

These aren’t cheap tacos but well worth the price if you are willing to pay for the experience rarely tasted north of the Mexican border.

Click here for more information