All Forum Posts by: Ed Wood

yes on everything

This is a sample with a 4.5% rate 30 year fixed payment qualification includes tax and insurance and $500 in borrower monthly debt (car, credit cards...) DTI ratios at 43% after Jan 10 and 50% before Jan 10

Maximum Loan Amount based on DTI ratios

Yearly Income...............before Jan 10.................after Jan 10

$25,000............................$73,272 ..........................$50,374
50,000..............................236,826...........................191,031
75,000..............................400,000...........................331,688
100,000............................563,935...........................472,344
125,000............................727,489...........................613,001
150,000............................891,043...........................753,658

edit: sorry for all the .......... but it's the only way I could make some sort of table for this post.

In California per the California Association of Realtors contract sellers have 7 days after acceptance to deliver the buyer all reports; title, hazard disclosure, HOA documents, transfer disclosure statement, lead, Megan's list, smoke detector/water heater, etc.

The buyer has 17 days after acceptance to complete all buyer investigations (yes this means physical inspections) approve all disclosures (such as megans law, lead, earthquake, title, HOA etc) during this time the buyer may request repairs or credit for repairs such as a price discount based on findings and the seller is not obligated to respond to such request. At the end of the 17 day period the buyer must do one of two things either cancel the transaction and yes get their deposit back or remove all contingencies.

This is all spelled out and easy to understand on page 5 of 8 of the California Residential Purchase Agreement (RPA-CA)

It's because they do not want to bother the tenants and it's a nightmare to schedule appointments with every tenant.

At least in CA anyway there is a default inspection contingency period anyway after the offer is accepted.

@Derek W.

It also comes down to circumstances there is a real world example. Agents do their short sale marketing and sellers respond when the lender finally gets serious to foreclose calling the agent saying, "we would like to short sale and our house goes to auction next week". The agent of course wants a chance a commission and goes out to the listing appointment explains to the sellers what the property is worth and if they list it at that price they may not get a offer for 20-30 days (after their foreclosure date) and in order to stop the foreclosure sale they need to under-list the property getting a quick offer to submit and that the actual selling price is determined by the bank. Of course sellers agree to the low list price facing a foreclosure sale.

So. Are the agents and sellers doing the right thing? Should they list for market price and risk losing the property to foreclosure? Or should lenders change their policies and stop foreclosure submission of a valid listing agreement?

HAMP was supposed to solve this issue with a standard set of guidelines.

Serviers website for HAMP admin

https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.jsp

It was so well put together a form letter was to go out to borrowers that did not get a modification the letter basically stated here are your options, one option included a short sale and $x price all the borrowers were to do was find a real estate agent to handle the transaction.

@Phil Z.

Besides the short sale process I'm just talking about agents listing low on short sales it's very misleading to buyers.

@Phil Z.

I disagree and agree with you Phil but unfortunately this is what we face in our market. It's so bad we've had to remove short sales from our buyer searches I've also noticed that Redfin will not show buyers short sales as well.

There are several apartment associations in California by joining one of the benefits is access to credit reports and tenant screening services. There are also web abased tenant screening services too.

@Dave Ketcham

My opinion, they leased the property with a refrigerator that included a ice maker if the ice maker is broken the owner should repair it. Courts may look at it the same way. Here's where you get parts you can probably replace the ice maker for $100

http://www.partselect.com/

here's the video