“What matters is not Wealth, or Status, or Power or Fame, but how well we have Loved”
-Pres. Barack Obama

3 MYTHS ABOUT FINDING A GREAT DEAL
There are a few “sure-fire” ways to find a cheap home that are more hype than reality. That’s not to say you can’t save money in the next three situations — under the right circumstances, you absolutely can. But what you save in money you may make up for in time, effort, and frustration.
Short Sales-
A short sale happens when a home-owner makes one last ditch effort to sell his home before the bank forecloses on it.
MYTH # 1: Short Sales are Guaranteed Savings
While it seems like this may be the opportunity of a lifetime to get a great deal on a home, this is not the case. Though the homeowner is desperate to get out from under the debt, his lenders are more desperate to get as much of their money back as legally possible. When it comes down to it, the lender has the final approval on any offer made.

MYTH # 2: FORECLOSURES ARE THE WAY TO GO
You may think that because the bank has many foreclosed homes in their inventory, you will not have any problems buying one from the bank very cheaply. Again, this is not necessarily true. While the bank may be more flexible when selling a foreclosed home, they are still looking to get the biggest return of their money, and to them you are just one of many bidders trying to get the house. Not to mention buying a foreclosed home from the bank can be a tedious and frustrating process. Also remember the former homeowner may not have been pleased about being foreclosed upon, and may have in fact damaged their former home before handing it over to the bank. This may lead to thousands of dollars in repairs alone.

MYTH # 3: AGENTS ARE A WASTE OF MONEY
Perhaps you think you can save some money by “cutting out the middle man”, so to speak, and broker your deal yourself without an agent. While this may be a good option for some, it isn’t advisable for everyone. An agent is a professional negotiator with an unbelievable attention to detail, that deals with research and interpersonal tension on a daily basis. It is actually an agent’s professional experience that can save you thousands of dollars on a deal.

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San Diego home values are now down 42.3% from their all-time high in November of 2005. From 2008, San Diego home values are down 20%, according to the Standard & Poor’s/Case-Shiller home indexes. However, San Diego County home values declined 0.1% between March and April compared with a 1.5 decline between February and March.

Consider switching to a natural gas clothes dryer, which is typically less expensive to operate than electric dryers, often by as much as 50 percent.

Pending home sales increase for third consecutive monthRecord low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to a recent report from NAR. Its Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it stood at 87.5.

œHousing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market, said NAR Chief Economist Lawrence Yun. œSince first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive  $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.   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 toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.  To qualify for the Mortgage Protection Program, applicants must:

  ·                   Be a first-time home buyer “ someone who has not owned a home in three or more 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)  

To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR ®.

Savings: Buying

In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.

Buy vs. Rent Comparison

• The renter starts out paying $800 per month with annual increases of 5%
• The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
• After 6 years, the homeowner’s payment is lower than the renter’s monthly payment
• With the tax savings of homeownership, the homeowner’s payment is less than the rental payment after 3 years.

Obama signs $787 billion economic stimulus bill
The U.S. House of Representatives and Senate last week passed a $787.2 billion stimulus bill to help create millions of jobs, spur consumer spending, and stimulate the economy.   On Tuesday, President Obama signed the bill into law.

MAKING SENSE OF THE STORY FOR CONSUMERS  

·           The historical American Recovery and Reinvestment Act of 2009 contains a provision to increase the Fannie Mae, Freddie Mac, and FHA loan limits in every county in the state to 2008 levels.   C.A.R. has long advocated for higher conforming loan limits, and believes this stimulus package is a step in the right direction for California™s homeowners.   The conforming loan limits in high-cost areas will be increased from $625,500 to $729,750, enabling more home buyers to purchase at favorable interest rates.  

·           The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009.   Home buyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.  

·           The stimulus package also contains $308.3 billion in appropriations spending, including $120 billion on infrastructure and science and more than $30 billion on energy-related infrastructure projects. It also allocated an additional $267 billion for direct spending, including increased unemployment benefits and food stamps; and provides $212 billion in tax breaks for individuals and businesses.