San Diego Mortgage

Interest Rate Scare - Temporary

Todays interest rates for a 30year fixed conforming loan are back at 4.625% and 7% for a jumbo.

Buyers sitting on the fence should take last weeks spike in rates as a reality check. Last week buyers found that their interest rate shot up almost a full percentage overnight.

Can it happen again...absolutely. We're in an extremely volatile market. Buyer's take advantage while you can. In my recent experience with buyers looking to purchase homes in San Diego, I learned that all signs point to a rebounding marketthe market. My clients are looking for homes all over San Diego in prices ranging from $200K to the mid $600K's. Its been tough, most properties have multiple offers and are being over bid.

This market is reminding me of when I first got into the business in early 2001. Properties were flying off the market. Although I'm not saying we're anywhere near where we were during the boom, I think the the over-bidding, short market times, and scarcity of properties (saleable properties, not tear-downs) is an indication that the market has bottomed out.

I'm strongly suggesting that my clients at the lower end of the range act quickly before there's no more houses in their price.

Market Update

Attached is the latest rate update as of this morning. Notice the rates have
ticked up just a bit from the last time I sent an update. These increases
are not currently justified from market conditions, but rather they are a
symptom of an overly burdened lending environment trying to hold off new
business until they can catch up. Below is a pretty good explanation of the
current situation, as described by Barry Habib from the Mortgage Market
Guide:

"But let's be mindful - and hopefully you are experiencing this as well -
that investors are slammed with the uptick in volume during the past several
weeks. This comes at a time when investors have both shrunk in number and
have depleted head count, in an effort to slash costs. So while the
increase in activity is certainly a good thing, it may be too much too soon
for investors to handle, and the only way to slow down the volume is by an
increase in pricing. And if you're an investor...why not do this, while
being maxed out in capacity anyways? It helps increase profits while making
the workload manageable. As an originator, this can be very frustrating as
you watch the actual markets improve from time to time...but this
improvement is not being reflected in some investors rate sheets. Let's
remember, this is a temporary phenomenon - but during the interim, this is
not a time to cut short your lock-in time frames. In other words, make sure
you have ample or even excess lock-in periods to get your loans closed
during this bottleneck. Be smart and take 60 day locks, rather than trying
to squeeze in a shorter time frame."

LOAN RATE POINTS PYMT ($400,000)
30 yr fixed 5.00% 1.0 $2,138 /mo
5/1 ARM 5.125% 1.0 $2,168 /mo
5/1 Interest Only 5.375% 1.0 $1,791 /mo
30 yr IO 6.00% 2.0 $2,000 /mo

CURRENT RATES – Conforming Plus Loan Amounts $417,001-$546,250
LOAN RATE POINTS PYMT ($500,000)
30 yr fixed 5.625 % 1.0 $2,864 /mo
5/1 ARM 5.50 % 1.5 $2,825 /mo
5/1 Interest Only 5.50% 2.0 $2,291 /mo

CURRENT RATES – Jumbo Loan Amounts > $546,250
LOAN RATE POINTS PYMT ($800,000)
30 yr fixed 7.875 % 2.0 $5,762 /mo
5/1 ARM 6.00% 1.0 $4,772 /mo
5/1 Interest Only 6.125% 1.0 $4,083 /mo
30 yr IO 8.00 % 2.0 $5,333 /mo


Other Related Resources:

Search San Diego Homes
Pre-Qualify Your Mortgage
Real Estate Newsletter
Online Home Value Analysis

Home Security - Better Safe Than Sorry (part 2 of 2)

5 Quick & Easy Crime Deterrents

When Your Home:

Neighborhood Watch - These meeting can be a valuable method for sharing information and spreading the word or recurring incidents. Members are also likely to be much more aware of warning signs that can prevent crimes. It's also a good way to meet your neighbors.

Security Systems - Home monitoring devices can help alert authorities of break-ins and allow response teams to be dispatched quickly. If you cannot afford a security system, placing a security company's sign in your yard is an effective and economical approach.

Dogs - Canines remain one of the most effective ways to prevent crime. Even smaller dogs can be great ways to scare off criminals by barking and laerting you of trouble. If you don't have a dog, simply posting a warning sign or leaving a dog bowl at your doorstep can work.

Exterior Lighting - Bright lighting outside the entraces will prevent most criminals from attempting to enter your home. Motion sensors along your side yards will startle any trespassers and will also alert you by grabbing your attention.

Panic Button - If your car has a car alarm, keep your keys handy. Triggering your car's panic button is a great way to frighten off someone who is lurking on your property or attempting a break-in.

When You're Away:

Short Term

- Leave a radio or TV on

- Have a neighbor park in your driveway

- Give a key to a trusted neighbor or relative and refrain from leaving it under the mat

- Leave lights on for the evening

- Make sure the stove, range top and irons are off

- Have neighbors pick up your mail and newspaper

Long Term

- Use timers on lights, TV's and stereos at random times

- Hire house-sitters to watch your home

- Ask neighbors to remove flyers and packages

- Turn your phone's ringer to low so a burglar will not be alerted of your absence

- Arrange for yard care

- Stop incoming mail and newspaper

I hope you find this useful. Always be conscious of your surroundings and a little extra time preventing a burglary can save you a whole lot of time and heart-ache in the long run!

REASONS FOR TITLE INSURANCE

Title Insurance protects a home owner or lender against any loss or damage they might experience because of liens, encumbrances, or defects in the title to said property. As opposed to your car, life, or health insurance which assumes risk for future events, a title policy insures the past of the real property and the people who owned it for a one time premium paid at the close of escrow. It is extremely important to obtain so that the future home owner is insured against various possible title defects, below are some examples:

1. Title insurance will protect you against a loss on your home or land due to a title defect.

2. A deed or mortgage in hte chain of title may be a forgery

3. Claims constantly arise due to marital status and validity of divorces

4. A deed or mortgage may have been made by an incompetent or under aged person

5. A deed or mortgage made under an expired power of attorney may be void

6. A deed or mortgage may have been made by a person with the same name as the owner

7. A child born after the execution of a will may have interest in the property

8. Title transferred by an heir may be subject to a federal estate tax lien

9. An heir or other person presumed dead may appear and recover the property or an interest

10. A judgement regarding the title may be voidable because of some defect in the proceeding

11. By insuring the title you can eliminate delays when passing your title on to someone else

12. Title insurance reimburses you for the amount of your covered loss

13. Title insurance helps speed negotiations when you're ready to sell or obtain a loan

14. A deed or mortgage may be voidable if signed while the grantor was in bankruptcy

15. Claims have risen dramatically over the last 30 years

16. There may be defect in the recording of a document upon which your title is dependent

17. Title insurance covers attorneys' fees and court costs

18. Many lawyers protect their clients as well as themselves, by procuring title insurance

19. A deed or mortgage may have been procured by fraud or duress

20. A title policy is paid in full by the first premium for as long as you own the property


If you're thinking of buying or selling in the future make sure you hire a professional that is knowledgeable and will have all your interests at hand. To secure you future, call us today! 619-325-4191 Or if you simply have a question don't hesitate to email us nathan-crudogroup@ascentrealestate.net we'd love to hear from you!

Investing in HUD Homes

A HUD Home is a home where the current homeowner cannot keep up with their payments, the lender forecloses on the home, HUD pays the lender what is owed and takes ownership of the home. So, in essence it is foreclsure that was secured by HUD who then trys to sell the home at market value typically using a Marketing and Management Company.

Any interested party who can qualify for a loan or who can pay cash may buy a HUD home. Owner occupants must live in the house as their primary residence for at least one year and may not buy another HUD home as an owner occupant for another two years. Buyers must use a broker or agent who is registered with HUD to place a bid on a property.

Once a HUD home has been selected your real estate agent must submit your bid for you. Normally, HUD Homes are sold in an "Offer Period." At the end of the Offer Period, all offers are opened and considered to be received simultaneously, and, basically, the highest acceptable net bid is accepted. If the home isn't sold in the initial Offer Period, you can submit a bid until the home is sold. Bids can be submitted any day of the week, including weekends and holidays. They will be opened the next business day. The results from the review of all accepted bids are posted on our website. It is the responsibility of the real estate agent to check our website for accepted bid information and ensure that all the required forms are properly filled out and sent to us within two business days of acceptance.

Sales transactions shall close within the timeframe as specified on your state/regional Forfeiture and Extension Policy. Closing timeframes in California are 45 days. Properties may close in less than the timeframe specified. However, the amount of days specified above for your state/regional area MUST be entered on the HUD Sales Contract. If closing does not occur within the timeframe then extension fees will apply. The Broker must submit a written request for an extension regardless of the reason for the delay in closing.

Special Programs Offered by HUD:

One of HUD's Special Sales Program under the Good Neighbor Initiatives is the Officer Next Door/Teacher Next Door (OND/TND) program. The OND/TND Programs offers HUD-owned, single family homes that are located in HUD designated Revitalization Areas will be made available to Law Enforcement Officers and Teachers at a 50 percent discount of the last listed price. When a law enforcement officer or teacher chooses to use an FHA-insured mortgage the down payment is $100. When a governmental agency of nonprofit organization is the purchaser, HUD expects that the full discount will be passed on to the law enforcement officer or teacher. Officer Next Door/Teacher Next-Door program participants are required to own and use their property as their sole residence for at least three (3) years. Participants agree to execute a second mortgage and note which will be for the amount of the discount which HUD can call at a later date if the buyer fails to re-certify. During the entire term (3 years), the buyer may NOT own ANY residential real property other than the OND/TND home. Failure to comply with this (or any OND/TND) requirement may result in the remaining balance of the second mortgage becoming immediately due and payable. The officer or teacher must submit a contract bid of 100 percent of the listing price. Winning bidder will be chosen by lottery. The 50 percent discount will be applied at closing. Teachers must be employed in the school district that they purchase a home in under the Teacher Next Door Program. More information on this program can be found at http://www.hud.gov/offices/hsg/sfh/reo/goodn/main.cfm

Effective November 1, 2005, HUD announced the eligibility of firefighters and emergency medical technicians to purchase HUD acquired homes located in HUD designated revitalization areas at a discount, in accordance with HUD's regulations for the Officer/Teacher Next Door (OND/TND) Sales Program. Inclusion in the OND/TND program is designed to help more firefighters and emergency responders become homeowners, and will further the goals of the OND/TND Sales Program to accelerate the revitalization of America's cities by promoting the integration of dedicated role models and mentors into the community. More information can be found at http://www.hudpemco.com/choose_specials.htm

Another one of HUD's Special Sales Program under the Good Neighbor Initiatives is the Direct Sales to Non-Profit Organizations and Government Agencies. This special sales program under which approved non-profit organizations and government agencies may purchase properties at discounted prices for use in local housing or homeless programs. More information on this program can be found at http://www.hud.gov/offices/hsg/sfh/reo/goodn/main.cfm

There are great opportunities to be taken advantage of by buying HUD homes. They are usually priced below market value for quick sales and offer amazing programs for civil servants. If you're interested on a free list of HUD homes for sale in your area, contact us today at nathan-crudogroup@ascentrealestate.net or visit our website at www.NathanCrudoGroup.com

Preparing Your Home For Sale

In the current buyer's market that we find ourselves in it is very important to take the additional steps to ensure your home shows its best. With tons of homes on the market and competition getting steeper every day considering staging your home for sale will not only help your home stand out from the rest but it can also help it sell faster too. For a minimal investment you can increase the perceived value of your home dramatically which may result in a higher sales price as well. Read on for a few quick and easy tips you can do yourself that can spruce up any home.

Your Stuff
Consider what the buyer needs to see in order to fall in love with the home...Try to avoid leaving personal items, such as toothbrushes or bath products on the bathroom counter. Keep it clean and simple and focus on highlighting the best features your home has to offer.

First Impressions
You only have one chance to make a first impression on visitors. Potential buyers may only be in your home for a matter of minutes so you want those moments to be the most positive. Don't forget simple things like mowing the lawn and trimming dead branches. Place pots with colorful flowers on your porch or entryway. Give the front door a fresh coat of paint to give visitors a warm welcome. Just like the bathroom, keep all counterspaces clear of "stuff". You want the buyers to focus on your custom cabinetry rather than you personal pictures or ceramic clown collection. Remember to clean out closets to make them look more spacious, and don't forget to organize drawers and medicinee cabintes because...yes, they open those too.

A Room with Use
It's pivotol to let home buyers see room as they were originally intended. You may have decided to nix a bedroom and turn into a game room with pool table dart boards and Charger memorabilia, but for the sake ofhome shoppers consider turning rooms back to their original state. Perform an inexpensive and quick makeover for these rooms by hanging sheer curtains to let daylight in and replacing aging light fixtures (with energy efficient, of course) and switches.

Freshen Up
Steam clean the carpets, touch up the paint and add emotional warnth with throw pillow, dramatic plants, and candles. For that "Architectural Digest" look, clear off the counters in the kitchen and bathrooms. An inexpensive way to add color is with a vase of vibrnat flowers, neatly folded towels, or a bowl of fruit.

The Nathan Crudo Group is a full service Broker. We take the time to counsel our clients on how to make the home more presentable and attractive to potential buyers. For sellers with a tight budget we work with you giving those little tips and tricks of the trade that add perceived value yet don't put s strain on your wallet. For those sellers with a more flexible budget we enlist the help of our preferred interior decorators. As part of their consultation which helps sellers prepare the home for sale, they'll provide suggestions on different color paint in rooms, rearrange furniture to make each living space appear more spacious and add finishing touches and accents that brighten up a room. For vacant homes we can provide bids which include the rental of minor but crucial furniture needed to help the buyer envision the home the way it was meant to be seen. All these touches from accent pieces to full home furniture rental can really make a difference if your putting your home on a market in a neighborhood with an influx of inventory.

Contact us today if you have any additional questions on preparing your home for sale or would like to know what your home will sell for in today's market.

Avoiding Identity Theft

To reduce or minimize your risk of becoming a victim of identity theft or fraud there are some basic steps you can take.

Tips from the Department of Justice -

Be stingy about giving your personal information to others unless you have a reason to trust them, regardless of where you are:

At Home
1. Start by adopting a "need to know" approach to your personal data. Your credit card might need you mother's maiden name so that it can verify your identity when you call. A person who calls and says there from your bank or credit card company, however, doesn't need to know that information if it's already on file; the only purpose of such a call is to acquire information for that person's personal benefit. Also, the more information that you print on your checks - the more personal data you are routinely handing out to people who may not need that information.

2. If someone cals you on the phone and offers you a chance to receive a major credit card, prize, or other personal valuable item, but asks for personal data such as your Social Security number, credit card number, or mother's maiden name - ask them to send you a written application.

3. If they refuse to send the application form, tell them you're not interested and hang up!

4. If they will send it, review the application carefully when you receive it and make sure it's going to a financial institution that's well known and reputable. The Better Business Bureau can give you information on businesses that have been subject of complaints.

On Travel
1. If you're taveling, have your mail be held at your local post office, or ask someone you trust to collect and hold while you're gone.

2. If you have to telephone someone while traveling, and need to pass on personal financial information, don't do it at an open telephone booth where passerby can listen in on what you're saying; use a telephone booth where you can close the door or wait until you're at a less public location to call.

Check your financial information regularly, and look for what should be there and what shouldn't:

What should be there.
1. If you have bank or credit cards accounts, you should be receiving monthly statements that list transactions for the most recent month or reporting period

2. If you're not receiving monthly statements for the accounts you know you have, call the financial institution or credit card company immediately and ask about it.

3. If you're told that your statements are being mailed to another address that you haven't authorized, tell the financial institution immediately that you did not authorize the change of address and that someone may be improperly using your accounts. in that situation, you should also ask for copies of all statements and debit or charge transaction that have occurred since the last statement you received.

What shouldn't be there.
1. If someone has gotten your financial data and amde unauthorized debits or charges against your financial accounts, checking your monthly statements carefully may be the quickest way for you to find out. Too many of us give those statements or the enclosed checks only a quick glance and don't review them closely to make sure there are no unauthorized withdrawals or charges.

2. If someone has managed to get access to your mail or other personal data, and aopened any credit cards in your name or taken any funds from your bank account, caontact your financial institution or credit card company immediately to report those transactions and request further action.

Ask periodically for a copy of your credit report.
Your credit report should list all bank and financial accounts under your name, and will provide other indications of whether someone has wrongfully opened or used any accounts in your name.

Maintain careful records of your banking and financial accounts.
Even though financial institutions are required to maintain copies of your checks, debit transactions, and similar transactions for five years, you should retain your monthly statements and checks for at least one year, if not more.

Even if you take all of these steps, however, it's still possible that you can become a victim of identity theft. Records containing your personal data - credit card receipts or car rental agreements, for example may be found by or shared with someone who decides to use your data for fraudulent purposes.

I hope you enjoy this information and find it useful, I know I did. Don't forget that consistency is key as well. Don't just start maintaining your records and throughly review your records one month and the next you slack off. It's important to be dilligent and consciously protect yourself, your identity, and your money. In case your interested in a free credit report please read my pervious blog called Suit Results in Free Credit Servicing and sign up to receive your free report and servicing.