CARHAF Mortgage Protection Program

If ya'll have been reading this blog long enough, you might remember a Bowling Tournament that the Sacramento Association of Realtors "Young Professionals Council" did back in November to raise funds for CARHAF (California Assocation of Realtors Housing Affordability Fund)? If anyone wants to know about the types of programs our fundraising efforts assist, CAR has just announced the Mortgage Protection Program (MPP).

Per an email from James Liptak, CAR President, "Through the CAR Housing Affordability Fund Mortgage Protection Program (CARHAFMPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. 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 to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:.

• Be a first-time home buyer – someone who has not owned a home in the last three 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 or military personnel

First-time home buyers must request an application for the HAF Mortgage Protection Program from their REALTOR®."

For applications and other information on this new program, you can visit the CARHAF website.

Sick in bed...and still reasonably productive...

I am not sure if perhaps I am suffering from a light case of Salmonella, or maybe the windy day we had in Sacramento on Sunday caused some allergies, but I have been sick for the last couple of days. Ugh!

It is surprisingly difficult to concentrate on blog writing with my head in a fog, but I have managed to be reasonably productive. I did reschedule all of my appointments from yesterday and today, but I still managed to work on a few short sale listings.

On Sunday, I submitted an offer for a client on a great house in Carmichael - which was accepted!...and I am happy to report that this particular first-time buyer was able to lock his interest rate on a 30-year fixed FHA loan for 5%!

Today, after a pretty eventful (aka unnessarily chaotic) escrow on a bank-owned property, another client closed escrow on her first home - a really cute house in Citrus Heights! I am making my lone trip of the day from home to go personally deliver the keys to her!

I am hopeful that my two full days of rest will enable me to have a productive Wednesday...and if not, I am sure DayQuil will help me get through!

Ask Erin: What type of hardship must I demonstrate in order for my lender(s) to consider my request for a short sale?

I received a call today from a very friendly man seeking information regarding the possible short sale of his house. When I asked what his hardship scenario was, he informed me that he had no hardship, but just wanted to dump his home because he owed more than it was currently worth. I asked a few probing questions...and he made plenty of money, could afford his payments, and was not pinched financially. Hmm...

Generally speaking, in order for a lender to consider a home owner's request for a short sale, the home owner must be able to demonstrate that there is some sort of pressing hardship. Hardships do not necessarily have to be financial in nature, but there usually must be some substantial burden that affects the homeowner's ability to continue to make the monthly mortgage payments.

• Loss of earnings. With state/local government employee furloughs, reduction of hours, cutbacks, layoffs, etc, this is probably the most common hardship for short sales that I negotiate. Loss of earnings is pretty simple to document through providing bank statements, or unemployment benefit statements to the lender(s).
• Interest rate adjustment. Many borrowers purchased or refinanced with adjustable rate mortgages (ARM's) or negatively amortizing loans, and simply can not afford the inflated mortgage payments once the resets occur. Many lenders are willing to modify the terms of ARM or Neg-Am loans, but many home owners opt to short sell due to this hardship. This is also a very straightforward hardship to document to the lender via bank statements and paystubs.
• Dissolution of marriage. When spouses separate, and one household becomes two, it is common that neither spouse can separately afford to keep the house. Often times this hardship must be proven to the lender(s) by providing a copy of any applicable court filings.
• Relocation. Often times families must relocate for one reason or another; for employment opportunities, education, etc. Often times this hardship must be proven to the lender(s) by providing copies of education or employment welcome letters.
• Disability or death. Perhaps one of the co-borrowers passed away, or was disabled, leaving the other borrowers or heirs to deal with the mortgage payment. Often times this hardship must be proven to the lender(s) by providing copies of death certificates, or other documentation from qualified medical professionals regarding the disability.
• Birth of a child. Perhaps you had a child, and had to take time off from work. Perhaps you have additional childcare expenses, another mouth to feed, etc. Often times this hardship must be proven to the lender(s) by providing copies of birth certificates.

There are many other reasons that lenders will consider allowing a short payoff of a property too. Please keep in mind that if you are merely upside down in your house, but do not have some external circumstances that affect your ability to make your monthly payment obligations - your request for a short sale may be rejected by your lender if you have the ability to pay, or you could be asked to contribute cash to close your sale, or you could be asked to repay a promissary note over time.

New Listing - 6724 Goldenwood Circle, Sacramento 95841

Located in the Summerhill neighborhood, this 3 bedroom, 2 bath, 1,647sf home has something for everyone - separate living and family rooms, updated kitchen with Corian counters and stainless appliances, vaulted ceilings, updated bathrooms, large master suite with lots of closet space and dual sinks, large backyard, big .181ac corner lot (per assessor), composition roof, located close to large park! Offered at $189,900 subject to lender approval of short sale.

Ask Erin: How can an FHA or VA buyer compete head-to-head with a Cash buyer?

I get asked this question quite often. FHA and VA financing can sometime seem like the red-headed stepchildren in the financing world when compared to other buyers who are using conventional lending programs or who are paying with all cash.

Why, you ask? FHA and VA loan programs have certain requirements regarding the property's condition. It is common for an FHA or VA appraiser to do an inspection and to require certain repairs. VA loans require a Section 1 Pest Clearance. Also, most FHA and VA buyers need the seller to pay their closing costs...in fact with VA programs, the buyer is not allowed to pay for certain costs (the seller must pay them). Sellers generally prefer the path of least resistence...usually this means that given the choice, a seller will choose to work with a buyer that is using a conventional loan.

Unfortunately, there is a lot of competition for properties in certain areas and price ranges, and if you are buying a home and planning to use FHA or VA financing, you may have a tough road ahead of you when going head-to-head with other buyers.

With short sales and REO Foreclosure properties becoming the rule rather than the exception these days, you as a buyer should be aware that listing prices these days have little to do with the actual market value of the property. These prices are now being set intentionally low to attract lots of attention, and in turn, lots of offers. You really do need to have a firm grasp on the actual market value of each individual property, know how to present your financing scenario in the best possible light, and send the bank ALL of its required offer elements. I suggest you have a frank, in person coversation with your agent, get a grasp on what is happening, and develop a strategy.


Part of the REO asset manager's job in approving which offer to accept in a multiple offer situation is selecting the offer that provides the least risk - the right combo of the fastest close of escrow, shortest contintency period, least amount of repairs, least amount of seller concessions, no appraisal (or likelihood of appraising at the right value for the loan), best and highest net price, etc.

Often times, the best offers that are the least risky are all cash...and yes there are MANY cash buyers out there.

Ask yourself (and/or your agent, who hopefully is helping you with this already) if there is something inherently unappealing in the offer you are presenting. Are you asking for excessive credits for closing costs? How large is your downpayment? How long are your contingency periods? Are items missing from your offer, like a lender pre-approval letter from a specific lender (like Wells Fargo, Countrywide, Chase, First Security Loans, MIC Loans, etc.), current proof of funds to close, a copy of a 1% deposit check, your signatire on a special addendum that is attached in MLS, etc.

Presenting a cleanly written offer may just be the bump you need to get that home of your dreams!

LOW Interest Rates...my clients are locking in below 5%!

Just learned that one of my buyer clients who closes escrow on her Sacramento home purchase in a couple weeks was able to lock in her conventional loan interest rate at 4.875%! That is phenomenal!

I have another client looking to make an investment property purchase that was quoted 5.5% for a conventional 30-year fixed...that is really low for non-owner occupant borrowing!!

Please be aware that there are reputable sources for this information, and there are other not-so-reputable sources for this information. Whichever company is giving you a rate quote, mortgage loan pre-approval, or whatever - MAKE SURE to obtain what is known as a "Good Faith Estimate" from them. A GFE is an itemization of all of the costs associated with obtaining the loan, states all of the terms of the loan, and states what your estimated monthly payment will be (including prinicple, interest, taxes, and insurance)...GET THIS IN WRITING! If a lender refuses to give this to you, consider this a HUGE red flag!!!

If you would like a referral to a reputable source for your mortgage lending, please shoot me an email, and I am happy to match you with someone great...

Have a Chase, WaMu, or EMC loan in default? Visit their LOCAL Sacramento Help Center...

If you have a home mortgage loan through Chase, Washington Mutual, or EMC and are currently unable to make your monthly payments, I encourage you to visit their new Sacramento Chase Homeownership Help Center. Located at 1950 Arden Way in Sacramento, loan advisors are staffed from 11am - 8pm, Monday -Friday, and 9am - 1pm on Saturdays to assist you.



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New Listing - 9041 Meadowsweet Way, Elk Grove 95624

You will love this 4 bedroom, 2.5 bathroom, 2,121sf home with a built-in pool in Elk Grove - just a short distance to Elk Grove Park and Elk Grove High School! Spacious layout with separate living and family rooms, updated kitchen and bathrooms, newer composition roof, newer central heat & air, pool was resurfaced recently! Sale is subject to lender approval of short sale. Offered at $235,000. For more detail and photos, visit http://www.9041MeadowsweetWay.com!

Sacramento Association of Realtors Masters Club Awards Luncheon

Today I had the pleasure of attending the Sacramento Association of Realtors "Masters Club" luncheon. In 2008, I earned a spot as a "Continuing Member" by satisfying the membership requirements of a minimum of $3M in transaction $ volume, and a minimum of 8 transactions (I actually more than doubled these requirements.

For 2009-2010, I was actually nominated and elected to the "Masters Club Steering Committee." I was really honored to be asked to do this. There are 18 Realtors that comprise the committee, and it is a 2-year commitment.

What is so great about the SAR Masters Club, you might wonder? I wish more of the general public were aware of this, but being in the Masters Club is more than just about being a top producer. We support the SAR Realtor membership with additional educational programs and services that enhance the competency, professionalism, and productivity of its members. In 2008 and already in 2009, I personally have participated in numerous top producer educational roundables, and taught classes at the association...I also visited other local associations to provide education (recently in Placer County, Tracy, Lodi, and Pleasanton). The Masters Club also does LOTS of charitable volunteering and giving. I am very excited to be a part of it!

I am pictured above at the luncheon with Alyssa Lozano, my favorite rep from Placer Title Company.

New Listing - 9133 La Riviera Drive, Sacramento 95826

This 4 bedroom, 2 bathroom home is conveniently located close to CSUS, and has easy access to Hwy 50 and downtown Sacramento. You will love the built-in swimming pool, updated flooring, and spacious and open layout. Sale is subject to lender approval of short sale. Offered at $219,000.

Wow...I closed a Sacramento Short Sale in 65 days from listing to close of escrow!!

Ok...so achieving this fete this was a combination of my short sale negotiation prowess, and a bit of luck - but today marked the close of escrow of the FASTEST short sale I have ever done. The property hit the market on January 5th, had an acceptable offer within three weeks, short sale lender approval in less than two weeks, a 30-day escrow, and -like magic- done. 65 days from start to finish!


Am I a short sale god?...no (but I am Sacramento's Short Sale Samurai, LOL). Most short sales have a much lengthier approval process, and I try to prepare most sellers for a process in the range of 3-4 months depending on their specific circumstances.

Sacramento's first "Second Saturday" of 2009 is this weekend!!

I am very excited that Sacramento's first "Second Saturday" of 2009 is this weekend! For details, maps, vendor, and parking/shuttle info, I highly recommend visiting the MidtownGrid website's Second Saturday Art Walk page.

For those of you who do not know, in midtown Sacramento on the second Saturday of every month, different local merchants and art galleries host reception-type events starting around 6pm. It is not uncommon to see things like local art exhibits, food and wine tasting, live music, fashion shows, and other special events. I have always had an amazingly fun time attending Second Saturday.

Have I mentioned how much I love preferred parking?

I found out this morning when I pulled into the parking garage that I was my Lyon Real Estate office's #1 Listing Agent for the month of February. Pretty cool out of an office of 112 Realtors. I achieved this three separate months last year in 2008. I love having this particular parking spot, mainly because when the gates open to the parking garage I can literally pull straight in, and it is right next to the elevator. Shockingly enough (insert sarcasm here), most of my listings last month were short sales.

New Listing - 5837 20th Avenue, Sacramento / Tahoe Park 95820

Adorable 3 bedroom, 2 bath, 1,767sf home (per appraiser) just a short distance to Tahoe Park! You will love the updated kitchen and bathrooms, built-in shelving, deck off the master bedroom, wood floors, cozy fireplace, newer roof, central heat & air, dual pane windows and attached garage! Offered at $279,000 subject to lender approval of short sale. For more information and photos, visit http://www.5837-20thavenue.com/.