Home buyers are an increasingly rare breed these days. Many who were eager to buy a house raced to take advantage of federal homebuyer tax credits. When those government perks expired in April, home sales essentially went into deep freeze, plummeting to levels not seen in more than a decade, according to the latest numbers from the National Association of Realtors.

Still, the Realtors project that nearly 4 million existing homes will sell in 2010. First-time buyers, without the burden of a home to sell, could benefit from the foul market–and the record low mortgage rates.

But woe to the overconfident buyer: Here are five common missteps that first-time home buyers make.

1. Snubbing the real estate agent

With so many websites offering a mass of data on listings, who needs an agent? Most people, actually. Finding a house and figuring out comps–the price of comparable homes on the market–is the easy part. Managing the nuances of offers, inspections, financing and all the other pivotal steps to buying a home is where many new buyers tend to get tripped up.,

When you hire an agent to act as your "buyer's representative," they are obligated to put your interests first, even if her commission is paid by the seller and based on the sale price. Skeptical? That's all the more reason to find an agent on your terms. Ask friends and acquaintances for referrals and interview two or three candidates before deciding.

2. Guesstimating how much you can afford

Many buyers mistakenly take a do-it-yourself approach to financing. They use online calculators to estimate how much house they can afford, dive into the house hunt and then get a dose of cold water when lenders refuse to qualify them for that amount. Not only are lenders reading loan applications closely, they're verifying employment and running credit checks multiple times during the process.

Make a date with a mortgage broker or banker before you get serious about your search. While online calculators do take into account property tax and insurance, it's up to you to account for maintenance costs, moving fees and association dues.

3. Letting charm cloud your judgment

No one will fault you for falling hard for a charming older home. But, unless the house has been painstakingly remodeled or you're prepared to pay for repairs and upgrades, an old house can quickly lose its allure. Last year Alison Koop, a public relations manager for the University of Washington, came dangerously close to saying "I do" to a seemingly fabulous mid-century home in northeastern Seattle. Ms. Koop was so smitten with the big windows and vaulted ceilings in the living room that she neglected to notice the exposed wires, shoddy roof and other structural problems. Any delusions Ms. Koop had were laid to rest in the guest bathroom. "When the inspector turned the faucet on," she says, "the spigot fell off, hitting the floor of the tub with an exclamatory thunk."

If you're considering an old home, don't let the inspection be your last line of defense.. "Negotiate a long due diligence period," he says. That gives you time to get real estimates from contractors and back out if need be. Of course, new homes aren't without their drawbacks. Recently, many newly built homes experienced serious problems with Chinese-made drywall, for example. Proceed with care whatever the home's age.

4. Focusing on the house, not the hood

In hindsight, many buyers say they wish they'd taken their due diligence a few steps further to really get to know all the perks, quirks and hassles of living in a particular place. You can always fix up the house, but there's no easy remedy for annoying neighbors, oppressive homeowner association rules and marathon commutes.. "As a first-time buyer you're not aware of all the things you should think about that aren't about the house,". Spend as much time as you can in your future neighborhood, ideally on different days and times. Eat in the restaurants, drop in a yoga class, test drive your commute.

5. Making arbitrary offers

With housing inventory running high and sales at record lows, in most markets, there's no shortage of houses for sale and sellers desperate to get out from under them–all the more reason to hold out for the right house and the right price. But when you find that perfect house, don't assume you can lob a lowball offer or make unreasonable demands. Even in hard-hit markets, nice houses in desirable neighborhoods are fetching multiple bids.

If the house has been on the market for months, you probably don't need to worry about other buyers lining up behind you. Make an offer based on recent sales for comparable homes, foreclosure activity and market trends, and don't be afraid to start the bidding low. If the house is fresh on the market (or recently foreclosed) and other buyers are circling the block, put your best foot forward but don't get suckered into a bidding war. By Sarah Max

The Lilly Team has been helping buyers achieve their real estate goals for 30 years. Call Hugh with you questions at 209-479-9222 or visit our web site at www.hughlilly.com .

Stockton Neighborhoods: Brookside, Lincoln  Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West  Spanos  Park, Weston Ranch, Port of Stockton, UOP.

Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240

Real Estate Multiple Listings: Bank owned homes, Stockton and Lodi Foreclosures and REO’s, Homes in Stockton, Homes in Lodi, Stockton California Listings, Stockton MLS Listings, Lodi MLS Listings, Ca Real Estate, Home Buyers, Stockton Homes for Sale, Lodi Homes for Sale, Stockton Short Sales, Brookside homes for sale, Spanos park home for sale, West Spanos Parke Homes for sale, Old Morada, Golf Course homes, Luxury homes, waterfront homes, Country homes Lodi Short Sales, Stockton Short Sale Specialist, Lodi short Sale Specialist.

Take advantage of the recession and down real estate market. A qualified buyer in Stockton and Lodi have opportunities as never before. Don't make the mistake of buying a new home when prices are on the rise. Many buyers were hurt during the boom, they bought at the top of the market and are now suffering imploded home values. Depressed home prices, low interest home loans have created the perfect opportunity for home buyers and real estate investors.

Homebuyer Advantages

Ø  Availability of some of the lowest prices in years

Ø  Increasing inventory of foreclosures and short sales

Ø  Homebuyers have a competitive advantage

Ø  Lowest mortgage interest rates ranging from 4 to 4.6%

Ø  Low down payment loans as low as 3.5% down

How to Get Ready for Your New Home

Ø  Contact an experienced lender and become pre-qualified for a home loan

Ø  Contact an experience Realtor to guide you through the process

Ø  Determine what you want in a home

Ø  Determine your monthly budget

Ø  Determine the location you desire

Ø  Set aside time to tour homes for sale

Ø  Determine your offer price, have your realtor show you comparables of sold homes

Ø  Determine total costs, escrow fees, lender fees, inspection cost, your realtor and lender can supply you with total costs

The Lilly Team at PMZ Real Estate insures that its buyers have the competitive advantages featuring daily updates of new homes on the market, free home loan prequalification, state of the art negotiation to help home buyers and real estate investors reach their goals. Call Hugh at 209-479-9222 or visit us at www.hughlilly.com or e-mail us at thelillyteam@comcast.net.   

What Buyers Need to Know About Short Sales

Are you looking to buy a new home? Are you thinking that now's a great time to find bargains? That's true, but it pays to know a little about the seller's situation before you make an offer.

If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You're a good candidate for a short-sale purchase if:

Ø  You're very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.

Ø  Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you're preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.

Ø  You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you're serious about purchasing a short-sale property, it's important for you to have expert assistance. Here are some people you want to work with:

Ø  Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate attorney who's knowledgeable about the short-sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation.

Ø  A qualified real estate professional.* You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers they've represented in a short sale and, of those, how many have successfully closed. A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as “lender approval required.”)

Ø  Title officer. It’s a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic’s lien, homeowners association lien, etc.), it's much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you’ve waited for months for lender approval. If you don’t know a title officer, your real estate attorney or real estate professional should be able to recommend a few.

Some of the other risks faced by buyers of short-sale properties include:

Ø  Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.

Ø  Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you.

Ø  No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The Lilly team has been helping buyers achieve the real estate goals and dreams for almost 30 years. Call Hugh today for a free consultation. Call 209-479-9222 or visit us at www.hughlilly.com .

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.

* Not all real estate practitioners are REALTORS®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS® and is bound by NAR’s strict code of ethics.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA. 

Stockton Neighborhoods: Brookside, Lincoln  Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West  Spanos  Park, Weston Ranch, Port of Stockton, UOP.

Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240

Real Estate Multiple Listings: Bank owned homes, Stockton and Lodi Foreclosures and REO’s, Homes in Stockton, Homes in Lodi, Stockton California Listings, Stockton MLS Listings, Lodi MLS Listings, Ca Real Estate, Home Buyers, Stockton Homes for Sale, Lodi Homes for Sale, Stockton Short Sales, Brookside homes for sale, Spanos park home for sale, West Spanos Parke Homes for sale, Old Morada, Golf Course homes, Luxury homes, waterfront homes, Country homes Lodi Short Sales, Stockton Short Sale Specialist, Lodi short Sale Specialist.

Are you facing the threat of losing your home through foreclosure? In almost 30 years in real estate I have seen with each down turn in housing scam artists developing worthless products to take advantage of homeowner’s misfortunes. Be wary of individuals and companies offering to "help" you out of your difficult financial situation. Consumer advocates report an increase in complaints about foreclosure "rescue" scams. These scams specifically target homeowners who are in financial distress. Scam operators advertise over the Internet and in local publications, plaster posters on telephone poles and at bus stops, stick flyers in people's front doors or contact people whose homes are listed in public foreclosure notices. Sometimes they direct their appeals to specific ethnic groups.

In one scenario the scam operator offers to "buy" the homeowner's property by paying off the amount that is overdue on the loan. He convinces the homeowner to move out and deed the property over to a third party. The homeowner is given the option of renting the property with the option to buy it back later. The rent payment on the home is often higher than the homeowner can afford. Often times, the original homeowner cannot make the rent payment and is evicted from their home. Or, if the homeowner expresses a desire to buy back the property, the scam operator usually sets the price of the home higher than the homeowner can afford.

The hapless homeowner can lose his equity and his home. Sometimes, the homeowner's troubles go even deeper. In many cases the initial mortgage has not been paid off and the deed was never transferred, as promised. Not only is the homeowner faced with eviction from the home, but they still owe for the original loan amount.

The Better Business Bureau, California Association of Realtors advises homeowners who are tempted by such offers to recognize that they are at real risk of losing money, equity, their home or all three. Carefully consider the following if your mortgage is in arrears or you are facing foreclosure:

Ø  Talk to your lender. Ask about how to restructure your loan payment or refinance. Some foreclosure "rescuers" will offer to "negotiate" with your lender or lawyer. Know that such an offer is likely to involve a significant fee. If you are hesitant to talk to your lender yourself, engage the assistance of a trusted family member.

Ø  Seek the advice of a local realtor who knows the market and does not charge an upfront fee.

Ø  If that proves to be unfeasible, try selling the house on your own to pay off the lender. Signing over a deed in no way releases you from your mortgage responsibilities!

Ø  Some schemers will offer to complete paperwork for you, or ask you to sign a stack of documents, supposedly to secure a new mortgage. Victims have later learned that they signed a quit-claim deed to their home.

Ø  Beware the personal approach. Some less-than-ethical businesses will stuff a handwritten note in your front door or mailbox that implies that "help" is available from someone you know or who has your interests in mind. Foreclosure scam artists know exactly what neighborhoods to blanket with their offers.

Ø  If a foreclosure "rescuer" instructs you not to contact your mortgage company or your attorney, beware. Your mortgage company is the very business that you should be in touch with! Furthermore, why would you agree to cease contact with your attorney when dealing with complicated financial matters that involve perhaps your biggest investment, your home?

Ø  You should never sign a contract under pressure and never sign away ownership of your property. Ask a trusted family member, your attorney or a financial professional to review any paperwork you may be asked to sign.

The Lilly Team has been helping homeowner for over 30 years make the right decisions for their unique situation. Call us today and see what you options are. Call us at 209-479-9222.

Stockton Neighborhoods: Brookside, Lincoln  Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West  Spanos  Park, Weston Ranch, Port of Stockton, UOP.

Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240

Real Estate Multiple Listings: Bank owned homes, Stockton and Lodi Foreclosures and REO’s, Homes in Stockton, Homes in Lodi, Stockton California Listings, Stockton MLS Listings, Lodi MLS Listings, Ca Real Estate, Home Buyers, Stockton Homes for Sale, Lodi Homes for Sale, Stockton Short Sales, Brookside homes for sale, Spanos park home for sale, West Spanos Parke Homes for sale, Old Morada, Golf Course homes, Luxury homes, waterfront homes, Country homes Lodi Short Sales, Stockton Short Sale Specialist, Lodi short Sale Specialist.

At should you price you short sale at?

The bank is going to do their own analysis of the sale price and market data. The list price of a short sale home usually has very little to do with the actual purchase price a bank may allow.  That is why is so important to value the home with recent and accurate market data. This is where experience comes into play; there is often a fine line between pricing a home with what the bank will accept and what buyers are willing to pay. A number of agents’ market short sales at low and implausible prices, in hopes buyers will submit offers. Even though seller may accept the offer it does not obligate the bank and mean they will be in agreement and approve the short sale.

What is a short sale?

Short sales occur when a lender agrees to accept less than owed on a mortgage. The property may be burdened by two loans or one loan. If it has two loans, both lenders must agree to accept a short sale and homes that have two loans are often the most difficult to do.

Why Banks Reject Short Sales

Documentation, documentation packaged correctly is the key to success. Lenders require documentation before approving a short sale. Sellers do not need to be in foreclosure or behind in making monthly mortgage installments, for a short sale to be successful. Here are reasons that banks turn down short sale requests:

·         Low Short Sale Offers

Banks will request an appraisal or a Broker Price Opinion When the listing agent submits the short sale offer, an experience  agent will also include a their own Broker Price Opinion that supports the purchase price for a short sale. If the lender believes they will come out ahead by taking the property through foreclosure, the bank will reject an offer.

·         A Complete and Detailed Short Sale Package is Key!

Ask any short sale specialist and you'll hear horror stories of how banks lose documentation. In some cases, it doesn't matter how many times the package is expressed overnight or faxed, the bank might misplace it. Worse, an important document might not be in the file, and without every single required document, the sale will not be granted.

There are other reasons a short sale may not be successful: the seller does not qualify, the buyer does not qualify or the second mortgage holder may not cooperate. The Lilly Team at PMZ Real Estate has been helping distressed home owner complete successful short sale. We are short sale certified call Hugh at 209-479-9222 or e-mail us at thelillyteam@comcast.net for you short sale package.

Stockton Neighborhoods: Brookside, Lincoln  Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West  Spanos  Park, Weston Ranch, Port of Stockton, UOP.

Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240

Real Estate Multiple Listings: Bank owned homes, Stockton and Lodi Foreclosures and REO’s, Homes in Stockton, Homes in Lodi, Stockton California Listings, Stockton MLS Listings, Lodi MLS Listings, Ca Real Estate, Home Buyers, Stockton Homes for Sale, Lodi Homes for Sale, Stockton Short Sales, Brookside homes for sale, Spanos park home for sale, West Spanos Parke Homes for sale, Old Morada, Golf Course homes, Luxury homes, waterfront homes, Country homes Lodi Short Sales, Stockton Short Sale Specialist, Lodi short Sale Specialist.

Short sale is a dirty word to many sellers and it doesn’t have to be, if handled in a detailed and systematic way. The success of a short sale has a lot to do with your short sale team: Realtor, financial advisor and the way it is packaged. Many sellers and homebuyers presume that short sales are for homeowners who have not handled their finances in a responsible manner. That is not always the case, with the downturn in the economy many homeowners find themselves with decreased incomes, unemployed and other situations brought on by the financial crises.

Conscientious borrowers are finding themselves having to sell their homes since they can’t continue with their monthly mortgage payments or because they have little or no equity in their homes because of the slump in the economy and cannot refinance.

Short sales at best will facilitate avoiding a foreclosure. Another benefit of a short sale is avoiding a substantial decrease in your credit or fico score which would have happened with a foreclosure that would have remained on a credit report for 10 years.

One of the chief problems with foreclosure is the time it will take before homeowners are eligible for a mortgage to purchase a new home. Normally it takes between five years to seven years before homeowners who go through foreclosure are eligible to purchase a new home. In actuality a short sale can be a huge advantage to the homeowner in distress.

The benefits of a successful short sale are not just reserved for the mortgagee but also for the lender and potential homebuyers. Lenders are motivated to cooperate with short sales. The loss on a short sale is much greater than a loss on a short sale by a substantial amount for lenders. Banks are not in the business of real estate, they are in the business of lending and non-performing assets are a real burden. Having homes that are not earning interest is merely creating losses for the lenders. When bank decides to cooperate with a short sale, they also avoid a costly foreclosure process that entails losses resulting from vandalism, legal fees mounting property taxes and maintenance of their REO.

Foreclosures take a long time and as the United States economy fluctuates, a foreclosure can continue to lose value, resulting in mounting losses for the lender. The cost of maintaining a foreclosure when the bank owns it can be substantial. By cooperating with a short sale, the lender can cut their losses.

The Lilly Team at PMZ has been helping distressed home homeowner with successful short sales and navigating the process of short sales Call Hugh at 209-479-9222 for a frees consultation, we do not charge a fee. E-mail us at thelillyteam@comcast.net  or visit our web-site www.hughlilly.com .

Stockton Neighborhoods: Brookside, Lincoln  Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West  Spanos  Park, Weston Ranch, Port of Stockton, UOP.

Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240

Real Estate Multiple Listings: Bank owned homes, Stockton and Lodi Foreclosures and REO’s, Homes in Stockton, Homes in Lodi, Stockton California Listings, Stockton MLS Listings, Lodi MLS Listings, Ca Real Estate, Home Buyers, Stockton Homes for Sale, Lodi Homes for Sale, Stockton Short Sales, Brookside homes for sale, Spanos park home for sale, West Spanos Parke Homes for sale, Old Morada, Golf Course homes, Luxury homes, waterfront homes, Country homes Lodi Short Sales, Stockton Short Sale Specialist, Lodi short Sale Specialist.

The question comes up all the time in my Real Estate practice: is it better to buy or rent? Buying a home is a big decision and it takes careful preparations.  The first step is assembling you home buying team, because buying a home is a team sport. The team is composed of a Realtor, Loan officer, title company, appraiser and home inspectors.

Steps in the Home Buying Process

Ø  Preapproval for a loan: It’s important o know how much home you can afford, the down payment required, monthly payment and most important the type of loan program that is the best for you: conventional loan, FHA loan or VA loans.

Ø  Putting Together Your Home Team: The process for a new homebuyer can be confusing and has quite a few steps. Choosing the right Realtor, Loan office, Title Company, appraiser and home inspectors is extremely important to the process. It is important that your team effectively communicate with you. Choose the team that listens to you and is interested in helping you reach your goals

Ø  The Purchase Offer: After you obtain your loan approval it’s time to shop for your new home. The last step is making the offer through your Realtor who will present and negotiate your offer with the listing agent and seller.

Ø  The Offer is Accepted: Once you receive an accepted offer, the real work begins. The due-diligence period starts and you must meet the timelines in the contract for final loan approval, appraisal, inspections and other terms in the purchase agreement. After all the terms and conditions are satisfied it time to move to your new home.

The Lilly Team with PMZ Real Estate has been guiding home buyers to achieving home ownership for almost thirty years. Call Hugh today for your home buyers’ consultation. Call Hugh at 209-479-9222 or email us at thelillyteam@comcast.net , visit our web-site at www.hughlilly.com .

Stockton Neighborhoods: Brookside, Lincoln  Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West  Spanos  Park, Weston Ranch, Port of Stockton, UOP.

Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240

Real Estate Multiple Listings: Bank owned homes, Stockton and Lodi Foreclosures and REO’s, Homes in Stockton, Homes in Lodi, Stockton California Listings, Stockton MLS Listings, Lodi MLS Listings, Ca Real Estate, Home Buyers, Stockton Homes for Sale, Lodi Homes for Sale, Stockton Short Sales, Brookside homes for sale, Spanos park home for sale, West Spanos Parke Homes for sale, Old Morada, Golf Course homes, Luxury homes, waterfront homes, Country homes Lodi Short Sales, Stockton Short Sale Specialist, Lodi short Sale Specialist.

Things to do on a Thursday night in Stockton:  Visit a Stockton treasure, the Haggin Museum’s hosts every 1^st and 3^rd Thursdays with complimentary food and drink from 5 to 9 PM. Learn about Stockton’s heritage. This is one of the greatest small museums I have seen; it has great art and historical exhibits. The Haggin is located in one of Stockton’s most beautiful parks, Victory Park 1201 N. Pershing Ave. Stockton, California.

Enjoy old time baseball in an open air stadium with the Stockton Ports, wow 10 straight winning games. Join them tonight from 7 to 10 PM in their four game series with the Lancaster Jethawks. Come and enjoy the game, great hotdogs and much more. Cheer the Stockton Ports to another winning game.

Visit the Alder Bistro for fantastic gourmet treats. It’s one of my favorites. Drop by for lunch or dinner they feature the basics and make them gourmet and also feature their specialties featuring European cuisine. A great place for romantic dinners and a place to take those you want to impress. Located just off the Miracle Mile on Alder street in Stockton

The economy has been tough on many potential homebuyers and Stockton and Lodi is no exception. Many of my clients ask me how I can qualify for a loan to buy a home after they have gone through Judgment, Collection, Bankruptcy or Foreclosure.  The FHA loan is probably their best option.

FHA Loan after Collection and Judgment:

FHA does not require that collection accounts be paid off as a condition of mortgage approval. However, court-ordered judgments must be paid off before the mortgage loan is eligible for FHA insurance endorsement.

Exception: An exception on a court-ordered judgment may be made if the borrower

• The buyer has an agreement with the creditor to make regular and timely payments, and
• The buyer provided documentation indicating that payments have been made according to the agreement.

FHA Loan after Foreclosure:

A borrower is generally not eligible for a new FHA-insured mortgage when, during the previous three years

• His/her previous principal residence or other real property was foreclosed, or
• He/she has given a deed-in-lieu of foreclosure.

Exception: The lender may grant an exception to the three-year requirement if the foreclosure was the result of documented extenuating circumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner, and the borrower has re-established good credit since the foreclosure. Divorce is not considered an extenuating circumstance. However, the situation in which a borrower whose loan was current at the time of a divorce in which the ex-spouse received the property and the loan was later foreclosed qualifies as an exception.

FHA Loan after Bankruptcy:

A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that

• one year of the payout period under the bankruptcy has elapsed, and
• The borrower’s payment performance has been satisfactory and all required payments have been made on time.

The borrower must receive written permission from the court to enter into the mortgage transaction.

Note: Exceptions to the guidelines are largely subjective and is based on the interpretation of the underwriter. Also, some of the lenders may not allow exceptions even if there is documentation to prove extenuating circumstances. Make sure to provide complete and accurate information to the lender at the time of loan application.

U.S. News and world Report ranking the top 100 colleges in the United States has ranked The University of the Pacific in Stockton, California in the top 100, another great reason to live and work in Stockton. UOP was ranked in the same group as Harvard, Princeton and Yale. The main campus is in central Stockton and a school of law in Sacramento and a school of dentistry in San Francisco. But UOP’s list of rewards doesn’t stop there. It has also been ranked by Princeton review and by Forbes. The report ranked UOP in the following subcategories:

Ø  Best overall cost at number 40

Ø  Student racial diversity number 22

Ø  Class sizes under 20 at number 42

Ø  Undergraduate engineering number 49

Early this year the University was ranked in the top 5 of most beautiful campuses, reminding many of Ivy League universities. Make it a point to visit this outstanding university and stroll through it pathways. The University not only offers a great education but also entertainment with its sports teams, Faye Spanos Concert Hall and community outreach.  The university is located just north of the Miracle Mile; visit one of our locally owned restaurants on the Mile: Coco Ro, Midtown Creperie, the Saigon Restaurant and The Valley Brew.

Join Stockton family and friends at a Stockton tradition for 57 years Concerts in the Park. I have been going there for 10 years and meet a group of 10 other couples for music, a picnic supper. The City of Stockton in partnership concerned citizens and the Stockton Musician’s Association present these free summer concerts in Victory Park on Pershing Avenue. Pick your favorite deli or put together you own picnic supper and favorite beverage and share with your family and friends and enjoy Stockton’s great summer evenings.

Join us Wednesday evening from 6 to 8pm. Don’t for get to support some of our fabulous Stockton eateries  and pick up a picnic supper. This week I am picking up mine at Podesto's Market & Deli featuring great sandwiches, torta, pasta and much more 209-951-0234, 104 Lincoln Center Stockton, CA .

Concert Schedule:

 In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain 'underwater' non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.

The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.

"We're throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined," said FHA Commissioner David H. Stevens. "This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product."

Today, FHA published a mortgage letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA's refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner's primary residence. And the borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115%.

In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.

To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.  for more information call Hugh at 209-479-9222 or e-mail us at thelillyteam@comcast.net . or visit www.hughlilly.com .

More than 42,000 laid-off California homeowners are about to get a break.

Starting Nov. 1, the government will help them make mortgage payments while they look for another job.

Wednesday, the U.S. Treasury Department added $476.2 million to a $64 million state program that will pay jobless homeowners up to $1,500 a month. The funding represents the newest federal effort to steer Troubled Asset Relief Program funds originally designated to prop up lender balance sheets to homeowners instead.

The powerfully upgraded $540 million program will help California's struggling borrowers make up to six months of payments. Lenders will be asked to match the government contribution.

In a statement Wednesday, Steven Spears, executive director of the California Housing Finance Agency, said the cash will "prevent foreclosures that would otherwise devastate neighborhoods, communities and California's economy."

CalHFA will administer the program as the state's affordable housing bank. In recent weeks the agency has received $1.1 billion in federal funds for states hit hardest by the housing crash. The money will subsidize mortgage payments, partially pay off mortgages and help thousands of borrowers catch up with payments.

In the capital region, unemployment has soared to 12.4 percent – and to nearly 20 percent in Yuba and Sutter counties. There have been 67,000 foreclosures since the start of 2007.

"In this recession people have been out of work longer. So we wanted to do this," Assistant Treasury Secretary Herb Allison said Wednesday during a media conference call.

The California program aims to help 19,000 unemployed borrowers make a few months of mortgage payments between its November launch and next July. Another 23,000 borrowers will receive help in the next two years, according to CalHFA estimates.

To qualify, homeowners must be out of work, eligible for unemployment benefits, and live in the home tied to the problem mortgage. They must be fewer than 90 days behind on mortgage payments and meet low- and moderate-income guidelines. Generally, that's less than $70,000 for couples in El Dorado, Placer, Sacramento and Yolo counties, and less than $54,000 for couples in Yuba and Sutter counties.

But many who refinanced during the housing boom will find themselves ineligible.

CalHFA said it is generally limiting aid to unemployed borrowers struggling with purchase loans. Though criticized for the exclusion, CalHFA officials said recently they can't decide who "cashed out for a good reason and who didn't."

Wednesday's $476.2 million allocation to California was the largest share of $2 billion awarded to 17 states. Altogether, CalHFA has received 29 percent of $4.1 billion in foreclosure prevention funds steered this summer to state housing finance agencies.

Jeanne and I had a great dining experience at the Midtown Creperie & Cafe located on the up and coming Miracle Mile in Stockton. I was really dismayed when one of my favorite restaurants closed, The Taste of Brittany. But the owners of Midtown have put together a great dining experience. The décor and the food are great. For being one of one creperies that I know of in Stockton, this one is pretty good. My wife and I tend to support local restaurants and businesses and this was a welcome addition. So if you’re looking for new restaurants in Stockton add this one to you list. Support Stockton Support Stockton Business.

Stockton Neighborhoods: Brookside, Lincoln  Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West  Spanos  Park, Weston Ranch, Port of Stockton, UOP.

Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240

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If you are currently behind on your monthly mortgage payments you may have thought about just letting your property go into foreclosure and that maybe the worst decision you can make. There are other solutions to avoid foreclosure and suffer destructive effects of your mortgage crises such as a short sale. A short sale has become a savior for many Stockton and Lodi home owners. The market value of home has decreased from the highs as much as 40 to 60 percent. Homeowners are underwater in their mortgages and are left with no alternative other than to attempt to sell their homes for less than what is currently owed on the mortgage.

In the current economy and estate market market many people often speculate about the differences between short sales and foreclosures. In this commentary we will clarify the differences between short sales and foreclosures.

Selling your home in short sale while not the best situation, it is a much better alternative than going into foreclosure. A short sale can be a win win situation for both banks and homeowners The bank will generally still obtain a large settlement on the outstanding mortgage balance from the sale and the homeowners will avoid the overwhelming affects that come along with foreclosure.

If you are thinking of letting your home go here are a few reasons why you might want to consider trying to sell your property first.

When you look to purchase another home in the near future you will have a much easier time doing so after a short sale. If your payments where never more than thirty days late and the lender does not require you to pay back the loan then you may be eligible to buy another home immediately. If your payments are overdue when the sale of your home closes escrow you will probably not be able buy a new home for at least the next two years if you go into foreclosure you will not be able to buy for 5 to 7 years.

Both of these events will have different affects on your credit score as well. A short sale is not necessarily viewed in a negative way and usually does not create a huge drop credit score. Usually homeowners who sell their home as a short sale will see their credit score drop anywhere from 50 to150 points it will be reported as settled, paid as agreed your credit report. It is also important to be aware that the negative marks will mainly only be caused by late payments prior to closing. For individuals who are able to manage their monthly payments all the way up to the time of closing their scores may drop as little as 20 to 50 points. The affects on your credit caused by foreclosures are far greater and much more damaging to your credit. Point drops due to a foreclosure can range anywhere from 200-400 points.

There are several other affects of foreclosures that are not associated with short sales. For instance loan applications will not ask about short sales but will certainly ask if you have recently had a foreclosure. If you have had one then you are much less likely to receive the loan. Also, foreclosures will show up on your credit score whereas short sales will not. The foreclosure will be listed clearly on your credit report while the negative effects of selling your home will be in the form of late payments on your credit history.

The Lilly Team has been helping home owners facing foreclosure and offers a no obligation consultation. We are short sale certified and HAFA certified call us today at 209-479-9222 or e-mail us at thelillyteam@comcast.net   Visit us at www.hughlilly.com .

Stockton Neighborhoods: Brookside, Lincoln  Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West  Spanos  Park, Weston Ranch, Port of Stockton, UOP.

Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240

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