East Bay Realty Pro Blog

I have always counseled my buyers to be careful not to take on additional debt, or to even apply for more credit, right before they purchase a home or during the escrow period. This is because banks use ratios of borrowers’ debt to income to grant or refuse loans.
In an effort to tighten up lending [...]

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One casualty of the mortgage meltdown was the disappearance, especially in California and other “declining markets,” of private mortgage insurance (PMI) companies. These were the ones that handled the majority of home loans where the borrower put down less than 20%.
With PMI companies no longer backstopping these low-down mortgages, borrowers flocked to FHA loans, the [...]

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The Federal National Mortgage Association, Fannie Mae (FNMA), recently changed its policies regarding deeds-in-lieu-of-foreclosure, by shortening the waiting period from four to two years for getting a new loan. This modification has been made “to reinforce the importance of borrowers working with their servicers when they are having difficulty repaying their debt,” per FNMA.
They are [...]

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On March 25th, I wrote about the additional 200 million dollars, for new and existing home purchases, that will become available for certain residential real estate purchases beginning May 1st, “Governor Signs New CA Tax Credit Into Law.”
Unfortunately, according to calculations by California Association of Realtors economist Robert Kleinhenz, funds for this second round of [...]

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This has been a good day for real estate. First, Federal Reserve Chairman, Ben Bernanke, declared that current, near-zero, interest rates need to be maintained in order to stimulate the economy. That was followed by an announcement that the governor had signed AB 183, providing an additional 200 million dollars in tax credit to California [...]

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After a long career in real estate, I can personally attest to how ineffective and feckless lenders can be in handling their business. But this one takes the cake!
An article in yesterday’s Wall Street Journal described how a contractor hired by Bank of America mistakenly entered the home of a woman who lived near Pittsburgh, [...]

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According to a survey by the California Association of Realtors (C.A.R.) of 2009 home sales in the state, “nearly three-quarters…sold as a result of financial difficulties.” These included “trouble making mortgage payments, job losses and increases in monthly mortgage payments.”
Interestingly, almost half of all sellers owned their homes for two years or less, up from [...]

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Got back yesterday from California Realtors meetings in Indian Wells — lots of sessions about problems in working with banks on short sales and bank-owned homes (REOs). Sellers who are underwater with their mortgage, and choose a short sale, need to make sure that is the best choice for them.
Banks are commonly having these sellers [...]

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Effective February first, FHA will insure properties that have been purchased and resold with 90 days. The prohibition was instituted in 2003 in an attempt to discourage lender fraud related to inflated mortgages accompanied by dishonest appraisals. It has had the unintended consequence of preventing FHA purchasers from buying legitimately marketed homes that have been [...]

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This is the tale of a young couple who was highly qualified to buy, yet was unreasonably turned down for their purchase by one of the banking giants. They have allowed me to tell their story in the hopes of informing other would-be buyers of the ridiculous hurdles some lenders are placing on today’s home [...]

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