Scott Schang's Blog (6)

Buying foreclosed properties is quite a bit different from making an offer on a short sale. Unlike a short sale, the price of the home has been set by the bank and is not a “guess” by the seller in hopes of getting offers to buy their home. Once the bank forecloses and owns the property it is listed with a Real Estate Broker to sell. Any pending offers made prior to the foreclosure are now disregarded. A short sale offer is an offer to purchase from the current owner, which in turn must have th… Continue

In such a volatile market as we’re in right now, on a day when conventional interest rates went up .125%, The California Housing Finance Agency in an unprecedented announcement reduced interest rates across the board. Rate Reductions are as follows: 30 Year Fixed * Moderate Income Areas Reduced .125% to 6.75% * Low Income Areas Reduced .25% to 6.5% 35 Year interest only PLUS * Loan Amounts of $450,000 or Less Reduced .125% to 7% * Loan Amounts in excess of $450,000 Reduced .25% to 7.375% 4… Continue

I want to give you a perspective on buying short sales and short pays that will give you more control of the transaction. Short Sales and Short pays are becoming more and more common in this real estate market and my best guess is that over 70% of what you are finding when you search for homes are either short pay / short sales or foreclosure / REO homes. The seller and seller's real estate agent are an important part of the short sale process. The number one thing i hear from "agents" is that… Continue

Updates and Clarifications on Federal Tax Credit - August 4th, 2008 * The tax credit is 10% of the purchase price up not to exceed $7,500 if you file jointly or $3,750 if you file as a single person. * A First Time Home Buyer is defined as a person that has not owned a home in the past 3 years. This also applies to co-borrower. * The tax credit is available for any home - new, old, bank owned or not in any condition in any part of the U.S as long as it's purchased within the designated… Continue

Nehemiah, Ameridream, HART and other private charities that offer seller assisted down payment grants score a win with the introduction of H.R. 6694. This proposal counters the legislation passed last week that puts an October 1st, 2008 cutoff for seller assisted down payment assistance programs under title II of the National Housing Act (H.R. 3221) H.R. 6694 calls the authorization of risk based mortgage insurance premiums for certain mortgagors that meet Fico requirements of 620 and above.… Continue

The California real estate market is prime for first time homebuyers. As property values continue to fall and foreclosures are on the rise, many Californians now see home ownership as a very real possibility. Click here for the complete list of 170 down payment assistance programs that you might not know about. Continue