Best Place Real Estate

With home prices down and interest rates really low, most first-time buyers know this is a great time to buy.  But with the constant news of job losses, many are hesitant to make the move.  To help relieve the pressure, the California Association of REALTORS has started a new mortgage protection plan to benefit first-time buyers.
C.A.R. president, James Liptak, sent an email to all C.A.R. members describing the program.  He states: “Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R. €™s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer someone who has not owned a home in the last three years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR  in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed or military personnel)

First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR “.

There is no cost for this program. To learn more, visit the CARHAF website.

Buying a fixer can be fun and very profitable, but it can also be a financial disaster and very stressful. Here are some tips to keep in mind when you are looking at homes:

Know what you are buying.  A “fixer” can mean a lot of different things, from a cosmetic fixer in need of only carpet and paint to a total dump that needs a complete renovation. Seriously consider how much work is needed. Has the house been well maintained and just needs updating or does it have some serious problems like a leaky roof and structural issues? Always, always, always get a professional property inspection!
Know yourself. If you are planning on doing the work yourself, do you have the skills needed? Many first time buyers or even experienced homeowners have started a project just to find out it is way over their head. It ends up costing them even more because an experience contractor has to do it over or fix what went wrong. Sometimes it is better to do some of the work yourself and contract out other projects. Also, do you really have the time to do it?

Know what it will cost. Whether you plan to do the work yourself or pay someone else to do it, check into the cost  of materials and labor before you buy the house. Getting more than one estimate is also a good idea.  Then add 10 to 15 percent to the total cost.  I have remodeled several homes and they always take longer and cost more than anticipated.

Know why you are doing it.  It depends on whether you are buying the house for a rental or if you plan on living in it yourself.  Fixing up a house to be a rental means bringing it up to par with other comparable rental property.  But if it is a house that you are going to live in, you will want to fix it up just the way you like it.  In either case, don’t over do it.  It is really easy to get caught up in the moment and upgrade more than necessary.

I love buying fixers but I have learned to seriously evaluate what I am buying.

It is already bad enough to have suffer through the heartache and stress of the foreclosure process and the possibility of losing your home. But to be the victim of a scam that takes advantage of you makes it even worse.

The increase in the number of foreclosures has also increased the number of predators preying on vulnerable homeowners.  These unscrupulous people try to convince desperate homeowners that they can rescue them from foreclosure.

The California Association of REALTORS has provided member REALTORS with a document for us to share with consumers regarding foreclosure rescue scams.  It provides some of the warning signs and red flags of a foreclosure scam as well as some resources for homeowners who are already victims of such scams.  Click on Foreclosure Rescue Scams below.

Foreclosure Rescue Scams

I must add that there are a number of very ethical professionals who are seriously trying to help homeowners facing foreclosures.  But, just like everything else, beware of the scam artist.