You’ve lasted through your job layoffs, paid your bills on time, and managed to save a little for a down payment.  With (extremely) low rates, a great tax credit, and a supposed mound of an inventory, the market should be yours for the taking, right?  I mean, we’re talking double-digit unemployment figures (in California), and a growing number of properties going into default.  What would first appear to be such an easy thing, has turned into a mound of frustration for those in the market to buy a house.

The problem: A large number of banks aren’t approving short sales within a reasonable length of time, and there are a lot of buyers in the same position you are in – scrambling to get into escrow and take advantage of the tax credit.  In addition, many properties that are in default aren’t being listed in the market for a number of different reasons (i.e. the homeowner attempting a loan modification that may or may not go through, the homeowner trying to extend their stay in the residence, bankruptcy, etc.).

Your Goal: To buy the right house for the right price, and to enter into escrow before April 30th & CLOSE BEFORE June 30th to take advantage of the tax credit.

Do your research to set yourself up for positive results!

1. Work with an agent that is as committed as you are to finding the right property.
2. Find out if the short sale is approved or not with the mortgage holder.  Approved short sales move much faster.
3. If the short sale is not approved, have your agent find out who the mortgage holder is.  Some lenders take much longer than others.  If your agent is unaware of the typical time lines for the particular mortgage holder, feel free to call or email me and I’ll let you know if I’ve had any experiences with that lender.
4. Supply as much documentation as possible during the pre-approval process.  Many problems that can derail or extend the escrow period can be prevented during the pre-approval process.  An ounce of prevention is worth a pound of cure!

The right mortgage consultant can provide great advice, closely monitor interest rates, and help you succeed with home ownership.  My contact information is posted throughout the site, and there are many contact forms that you can complete to get in touch with me.

Congress recently acted to keep the existed loan limits through 2010:

Regular Conforming Loan Limits: $417,000

Temporary Conforming Jumbo: $729,750

For high cost cities such as San Clemente, this is especially good news.  According to Dataquick, the average sale amount was $638,875 for October, 2009.  Since Jumbo mortgages vary in interest rate and underwriting requirements, this should help keep some stability in the market for home buyers and those looking to refinance.

MC