Durect Link

http://www.youtube.com/watch?v=fOazS9i4A7c&feature=youtu.be

Oakland Ca., It’s no secret we’ve discussed this before, there are some properties on the market with deferred maintenance right? Well it can be tricky for first time buyers to get into these well priced properties due to financing restrictions. That’s why more and more we are seeing 203K offers when necessary, a loan that actually allows you to finance the construction of the property after the close of escrow. Now the big questions is “How do you write an offer on a 203K property?”

Step 1
Put 203K in the Purchase Contract – Now this is not legal advice on how to write a purchase contract, however a good rule of thumb would be to fill out your contract like you would a normal FHA contract and then write in “203K renovation for FHA”.

Step 2
Provide for Longer Contingency Periods – A 203K takes a little bit of time, allow for enough time to get the Home Inspection AND a Contractor Bid with the HUID consultant present. Then, once construction is finalized we can submit to underwriting and order appraisal.

Step 3
Provide Longer Appraisal Contingency than You Are Used To – 203K Appraisals are based on future appraised value. You have to have the HUD consultant work write up and construction costs figured out FIRST before we can even order the Appraisal let alone inspect the property.

Step 4
Give 60 Days to Get it Closed – 203K Loans have more 3rd party items so give some additional time to get a couple contractors to the house AND give the contractors time to price accurately and get the file properly underwritten.

Now that you know how to write a 203K contract you need to be able to sell the offer. To do that educate the listing agent on the fact that condition is a non-issue. All the repairs the property needs will be taken into account early on and there is rarely a value issue on these loans.

For more information email info@garrick.biz or call or text 510.846.3006.

Related Articles:
203K and Sewer Lateral Repairs

The Truth About 203K Financing

203K Streamline vs. Full

Direct Link:

http://www.youtube.com/watch?v=SyhrJHk4vdc&feature=g-all-u

Oakland, Ca.  As you may know, in many cities, a sewer lateral inspection/repair is a requirement in every real estate purchase transaction. Specifically in Oakland after January 16, 2012 all homes purchased are now required to obtain a certificate of compliance from EBMUD. So what does this mean exactly?

The EPA among other agencies is requiring six East Bay cities and one sewer district to fix old, cracked sewer pipes to ensure they don’t allow the infiltration of rainwater which can overwhelm water treatment facilities and pose a threat to public health.

When are property owners required to obtain a compliance certificate?

The ordinance specifies three conditions which require property owners to test and, if needed, repair or replace their private sewer laterals:

1. Prior to selling the property; or
2. When obtaining any permit for the construction or modification of the property estimated to be greater than $100,000; or
3. When increasing or decreasing EBMUD water service that requires a change in meter size.

When purchasing a bank owned home the cost of the inspection and repairs is not automatically paid by the seller a.k.a. the bank as in certain other real estate transactions. Typically banks really don’t want to pay for anything on REO transactions especially maintenance. Buyers can utilize a FHA 203k rehabilitation loan to finance the charges and thus avoid having to pay out of pocket up front for these repairs. The City of Oakland will allow the borrower to pay a $4500 deposit to the city, and after the close of escrow when the work has been completed the funds from the construction loan can be used to pay the bill and the borrowers will get their deposit money back.

For more information on the benefits of FHA 203k financing call 510-282-5456 or email info@garrick.biz. Thanks you for watching, liking, forwarding and sharing!

Related Links:

203K Full vs. Streamline

203K and Energy Efficiency

203K on Location

Did you know that 83% of HUD Money goes to Rental Assistance, Operating Subsidies, Public Housing. And Homeless Grants and only 17% is allocated to FHA? Check out my debut co-hosting the Daily and learn more on this hot topic.

Home Owner Bill Of Rights Focuses on Foreclosed Properties in California; San Francisco, Oakland, Alameda

Direct Link

http://www.youtube.com/watch?v=4FqBL_NN22E&feature=plcp&context=C4774aeeVDvjVQa1PpcFNxIKhmLFmXvd2AG5sOq4XuvCSpfzvIpX4%3D

San Francisco; Ca; A Homeowner Bill of Rights has been introduced to the California State Assembly in the form of seven bills entered Focused on the impacts of foreclosure.

California Attorney General Kamala D. Harris’s office said that the proposed legislation seeks to protect homeowners from unfair banking practices related to foreclosures and provide remedies for communities threatened by blight from foreclosed properties.

Two of the bills would provide local communities with the ability to bring increased penalties against the owners of blighted properties deterioration, faulty planning, inadequate or improper facilities, deleterious land use or the existence of unsafe structures, or any combination of these factors,, even taking control of the property.

Another bill would protect tenants in foreclosed buildings. Purchasers of foreclosed properties would have to honor the terms of existing leases and allow tenants at least 90 days before commencing on eviction proceedings.

There are two bills which would provide additional tools for the Attorney General to investigate and prosecute mortgage frauds and crimes.

The final two bills in the clutch of legislation would allow the Attorney General to convene a special grand jury to investigate and indict the perpetrators of financial crimes when the victims are in multiple jurisdictions.

All seven of the bills have passed out of the appropriate legislative review committees and are heading toward a vote of the whole assembly.

If you have any questions or need help getting pre approved for a home loan to buy REO’s or any other property please email or call me 510.282.5456 info@garrick.biz

Here is a ThinkBigWorkSmall Daily show with my first “Man on the Street” segment.

You can catch the show daily at www.thinkbigworksmall.com