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Making Home Affordable is a new plan to help keep homeowners in their homes. One really great part of the plan includes a new refinance option for homeowners who are trying and keep their homes.

A lot of ideas surround helping homeowners who are in default or already close to foreclosure. Some loan modifications and short sales even require that homeowners be delinquent on their mortgage payments before being eligible and by this time it can be already too late to keep an owner in their home.

The difference in this plan is that it targets responsible homeowners who have paid their mortgages on time for the past 12 months. By doing that, it targets homeowners who aren't yet in trouble, making it more likely for a home to be saved. It also gives homeowners…

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Some people have been asking me about the recent $8,000 tax credit for first time home buyers and I thought I should address it here. If you are buying or will buy a home in 2009 as a first time home buyer (see below for definition), you will be eligible for an $8,000 tax credit that you will not have to pay back. This is part of Obama's Recovery and Reinvestment Act and will replace the previous $7,500 credit that was previously in effect. So below are some of the qualifications necessary:

1. First Time Home Buyer Purchasing in 2009
A first time home buyer is defined as a someone or a couple who has not owned a home in the past three years. The purchase, or recording date needs to be between or on January 1, 2009 to December 31, 2009. If you're not sure…

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With energy prices on the rise and global resources diminishing, more and more people are making efforts to conserve energy, water, and other resources. While some of the ways you can conserve can be expensive, below are some great, low cost ways to reduce your consumption.

1.      Compact Fluorescent Light Bulbs – $3.50/bulb
Compared to traditional incandescent light bulbs, compact fluorescent light bulbs use 75% less energy, produce 75% less heat, and can last 10 times longer. According to Energy Star, if each household replaced just 1 light bulb in their home, we could save enough energy to power 3 million homes for a year, save more than $600 million in annual energy costs, and prevent greenhouse gases equivalent to the emissions of more than 800,000…

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Since 2006, conforming loan limits have stayed at $417,000 but on February 13, 2008, the President signed an economic stimulus package that includes a temporary increase of conforming loan limits.

For those not familiar with the industry, Fannie Mae and Freddie Mac are governmental institutions that purchase mortgage loans from banks. Each year, they collaborate to set criteria loans must meet so they can be purchased and these loans called conforming loans. These loans are typically set at a lower interest rate and have better terms than non-conforming loans. The reasoning behind the change is to help homeowners stave off foreclosure and defaults due to high or adjusting mortgage rates.

While banks have still not included these new loan limits in the…

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In today's turbulent market, lender's and banks are being forced to tighten down, requiring larger down payments, more reserves, and more documentation that it had previously. In most ways, it's a step forward in preventing unqualified borrowers from purchasing homes they can't or won't be able to afford in the future. However one of these restrictions, if not implemented correctly, can potentially lead to lost deals and even lawsuits.

Lenders have always relied on appraisals to determine the market value of a property. However, in today's market, appraisers also provide information on whether a market is soft or stable. If a particular market area is determined to be soft, a lender will require an additional 5-10% down payment and possibly additional…

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My name is Mark Cheng with IRN Realty. This is my blog where I will be posting informative, up to date articles and information on buying and selling real estate in general and about the communities I work. Specifically, I will be providing information about Arcadia real estate, San Marino real estate, Temple City real estate, Pasadena Real Estate, South Pasadena Real Estate, and real estate in surrounding areas.

My ultimate goal for this blog is to serve as an educational resource for learning about the basics of real estate, as a forum that addresses the pressing issues in real estate, a collection tips and guides for my clients and friends, a way to access monthly market updates for the cities I work in, a place to share client success stories, and a…

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Continued from Short Sales, Part 1: Taking Advantage of the Buyer's Market

Why Work with a Short Sale Expert?

When it comes to purchasing short sales, INFORMATION IS KEY. Work with an agent and company that is experienced in short sales to maximize your chance of a smooth, successful transaction. An experienced knowledgeable real estate agent can give you a competitive edge when it comes to finding the right home in the following ways:

1. Exclusive Inventory
Agents who work with short sales often have information on off-market listings that can't be found on an MLS. They may be in contact with sellers may be facing financial difficulties but have not yet publicly listed their homes because he or she is still trying to avoid the sale or is in… Read Full Post

What is a short sale?

Pre-Foreclosures, also known as short sales, occur when the selling price of the home minus all closing costs amounts to less than the total loan amount (the first and if second mortgages combined). This differs from foreclosures which is when a buyer fails to pay his or her mortgage for a period of time, typically 6 months, and the bank takes ownership of the property making the house a Real Estate Owned or REO.

For example, an owner purchased a home in the real estate boom for $500,000 with 0% down with an interest only loan. He realizes that he can no longer afford the home and decides to sell it. The home, in today's market, is now worth $470,000. After closings costs, his net cash might amount to $450,000, not enough to repay… Read Full Post