Jerry Newman's Blog

Why use an Accredited Buyer’s Agent to represent you in today’s market?   I hear that question quite often in today’s buyer’s market. The fact is, the average buyer, and especially the First Time Home buyer has no clue how REALTORS ® work, or what Agency representation is all about.   Agency is more than just showing buyers properties and filing out all the paperwork for the sales transaction.   It is a fiduciary duty to our clients, which says we must place  our client’s interests ahead of our own. We must take confidentiality serious, and abide by the Code of Ethics and Standards for a Real Estate Professional.   Therefore, a Buyer’s Agent not only speaks for his client, but he is a guide from contract to close who is loyal, truthful, honest, and honors  the client’s confidentiality.  

Purchasing a home without representation can possibly be the biggest financial mistake a buyer can ever make. For many buyers, purchasing a home is the most important purchase in their life. Why would you ever want to do it alone, without any advice from an expert, a real estate professional? Remember a client is a consumer, who has signed and entered into a written representation agreement with a real estate agent. Without a written agreement that defines the duties and responsibilities of the  agent and buyer, the buyer is still a consumer, who is not protected  as  a fiduciary. That agent, in the state of Texas, would legally be representing the seller without a  written Buyer’s Agency Agreement.  

Any agent who has earned the ABR ® designation has received special training and courses in working with buyers in an agency relationship.  They are trained to listen and to understand the buyer’s needs, since it is all about serving the needs of the buyer, and meeting all their expectations.  So why not let an ABR ® assist you with your home buying purchase in this buyer’s market? In most situations, it will not cost the buyer a fee, since the agent’s commission is often paid by the other Broker, the listing Broker, or the new home builder.  

Look for the ABR ® logo to find a Buyer’s Agent Representative today!!

Call Me or Text Me Today at 210-789-4216

Texas has always taken care of her veterans. In 1836, the Texas General Land Office was formed, in part, to make sure veterans of the Texas Revolution were given the land rights they were promised in exchange for their role in liberating Texas. In 1946, the Texas Veterans land Board was created to do the same for Texas veterans of a different war who helped liberate the world.Today, the Texas Veterans Land Board proudly serves over 1.7 million Texas veterans of all ages.   A wide array of special benefits are offered exclusively for Texas veterans, including state veterans homes and cemeteries, and below-market interest rate loans for land, housing and home improvements.   Beyond offering the benefits our veterans so richly deserve, the Texas Veterans Land Board proudly serves as the veteran’s voice in Texas.   Working with other state agencies, and the VA, our veterans are offered the BEST benefits in the nation—All at vitrually no cost to the Texas taxpayer.   But the best is not good enough. The Texas Veterans Land Board is always striving for new and better benefits and programs for Texas veterans. Whether in 1836 or today, Texas veterans have always deserved the BEST.

For more information visit http://www.glo.state.tx.us/vlb. or call Jerry at 210-789-4216.

Question: What Is the Good Neighbor Next Door (GNND) Sales Program?

Answer: HUD wants to strengthen America’s communities. The Good Neighbor Next Door Program offers HUD owned single family (one-unit) homes to eligible participants at a 50% discount.

Question: Am I Eligible for the GNND Sales Program?

Answer: Law enforcement officers, teachers and firefighters/emergency medical technicians and who meet all other requirements of the program are eligible to purchase an available home.

Question: How Much of a Discount Can I Get on a HUD Home?

Answer: You can get a 50 percent discount off the HUD appraised value. For example, if HUD lists a home at $100,000, you can buy it for $50,000 provided, you occupy the home as your personal residence for the required occupancy period. If you qualify for any FHA-insured mortgage program, your downpayment is only $100 and you may finance closing costs.

Question: What Kind of Mortgage Financing Do I Need?

Answer: You may use FHA, VA, or conventional mortgages, or cash. HUD requires you to sign a Second Mortgage and Note on the discounted amount (which is $50,000 in the example above). No interest or payments are required on this “silent second” mortgage if you live in the home for the entire 36 month occupancy period. You may be required to pay a pro-rata portion of the discount to HUD should you fail to fulfill the three year occupancy requirement.

Question: What is the Occupancy Period?

You must live in the home as your sole residence for a full 36 months. The purpose of the program is to strengthen communities by encouraging employed, professional law enforcement officers, teachers and firefighters/emergency medical technicians to live in the community. You will have 30, 90 or 180 days to move into the home you purchase, depending on HUD’s determination of the condition of the home and the level of repairs that may be required, if any. The 30th, 90th or 180th day is the start date for the occupancy period. Your are released from all obligations under this program at the end of the 36th month following the start date. HUD views the occupancy obligation seriously and vigorously pursues violators to the fullest extent of the law.

Question: What Is an FHA Rehabilitation Mortgage and How Can It Help Me Buy a HUD Home?

Answer: The FHA 203(k) mortgage program helps homebuyers buy a home and have enough money to rehabilitate or repair it. Repairs must cost more than $5,000. The cost of the repairs and the mortgage are combined into a single monthly payment. Consider FHA™s 203(b) program if needed repairs are under $5,000. FHA also has a new Streamlined 203(k) program which may be useful.

Discuss these financing options with your lender!

Question: Can I Sell the GNND Home after 3-years and Keep the Profit?

Answer: Yes. After you live in the GNND home 3 years, you can sell the home and keep any equity and/or appreciation.

Question: Do I Have to Use a Real Estate Broker or Agent to Buy a GNND Home?

Answer: Yes.

Question: Do I Have to Be a First Time Homebuyer to Take Advantage of the Program?

Answer: No. However, you may not own any other residential real property at the time you submit your offer to purchase a home and for one year previous to that date. For example, if you submit an offer to purchase a home on August 1, 2007, you may not have owned a home during the period from July 31, 2006.

Question: Where Are These Homes Located?

Answer: The HUD homes are located in designated Revitalization Areas. There are hundreds of Revitalization Areas located in the United States.

Question: Does HUD Provide a Home Warranty?

Answer: No. All GNND homes are sold “as is,” without any kind of warranty.

Question: Can I Buy Multiple Unit Properties (E.g., Duplexes, Triplexes, Etc.) through the Officer Next Door Program?

Answer: No. You can only buy single unit homes, townhouses, and condominiums through the GNND Program.

Question: Do I Have to Pay Earnest Money or Other Deposits in Order to Submit a Contract for a GNND Home?

Answer: Yes. The amount of the earnest money deposit required is an amount equal to one percent of the list price, but no less than $500 and no more than $2,000. HUD considers all offers to be a commitment to purchase a home if you are awarded the sale. Therefore, please carefully consider your offer and be aware of HUD’s policy on earnest money as stated here: If an offer is accepted, the earnest money deposit will be credited to the purchaser at closing. If the offer is rejected, the earnest money deposit will be returned. Earnest money deposits are subject to total forfeiture for failure of the participant to close a sale.

Question: Can I Bargain with HUD on the Price of a GNND Property?

Answer: No. You must offer the exact HUD list price when bidding on any GNND property. Then you get a 50 percent discount off of that list price.

Question: What if I Leave the employment, that made me eligible, for Any Reason, during the Mandatory 3-year Residency Period?

Answer: Nothing happens, but you must continue to live in the home for the full 36-month mandatory occupancy period. If you move out of the GNND home, you will have to repay HUD on a prorated schedule. In addition, you must certify that it is your good faith intention to remain employed as a law enforcement officer, teacher or firefighter/emergency medical technician for one year beginning with your purchase. Do no attempt to participate in the program if you know in advance that you will not be employed as required for at least one year.

Question: Some Agencies Have Other Homebuying Programs. Can the GNND Program Work in Conjunction with These?

Answer: Yes, as long as you can meet all the GNND program rules while participating in these other programs.

Question: What Happens if a Participant Fails to Honor the 3-year Occupancy Requirement?

Answer: HUD can demand repayment of the discounted amount on a prorated basis. That means you would have to repay 1/36th of the discount you received for each month that you did not occupy the home. HUD also may initiate administrative sanctions including, but not limited to, barring the officer from participating in any HUD/FHA programs, as well as other federal programs. In any case of fraud or abuse, HUD will refer the case to HUD’s Office of the Inspector General for investigation and possible criminal prosecution. HUD may also notify the officer’s employing agency. Criminal prosecution and conviction for fraud and abuse concerning the GNND Program can result in a fine of up to $250,000 and/or two years in federal prison.

Question: How Does HUD Enforce the 3-year Residency Requirement?

Answer: The participant must certify he or she is living in the GNND home as a sole residence at the time of purchase and each year after that. HUD can conduct spot checks to make sure the GNND home is your sole residence at any time during the 3-year period. You also must sign a note and mortgage for the discount amount. HUD may foreclose this mortgage if you do not comply with the 36-month occupancy requirement.

I already purchased a home under the GNND Program. Where can I get information about my second mortgage?

Information is available on the Good Neighbor Next Door Loan Servicing page.

Where can I get additional information?

Please call the FHA Resource Center.

Foreclosure is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor‘s equitable right of redemption.^{[clarification needed]} Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue homeowners’ association dues or assessments.

The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust“. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that “the lender has foreclosed its mortgage or lien“. If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgment.

There are generally three types of Foreclosures. REOs,which are Bank Owned Real Estate properties, HUD Foreclosures, which are  defaulted FHA loans to the government, VA Foreclosures, which are defaulted loans from the Veterans Administration.   Search For Foreclosures  in San Antonio and the surrounding areas, then text me or call me 210-789-4216.

A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.

The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he/she would in a formal foreclosure. Another benefit to the borrower is that it hurts their credit less than a foreclosure does. Advantages to a lender include a reduction in the time and cost of a repossession, lower risk of borrower revenge (metal theft and vandalism of the property before sheriff eviction), and additional advantages if the borrower subsequently files for bankruptcy.

Deed in lieu of foreclosure often seems like an option many people in default would like to take to cure a pending foreclosure, but it really is one of the least preferred options from a lender viewpoint. A deed-in-lieu seems like such a simple concept, the borrower doesn’t want the home and the lender will probably end up owning the home after foreclosure. Why not just get it over with now, mail the lender the keys and the deed and it will all be over.

It’s not that simple from the lender’s viewpoint.
If there are any other loans other than the foreclosing loan against the property, the lender accepting the deed in lieu will need to pay those off to obtain clear title. The same applies for any possible judgments that may have been recorded. Then there is the question of who is on the property title. Are all the owners interested in providing a deed-in -lieu? Do all those owners really understand exactly what they are giving up? Are they going to come back a year later and say they didn’t understand?

There are 4 main conditions for a lender to consider a deed-in-lieu.
1. Foreclosure is imminent and unavoidable
2. The borrower is unable to sell the property.
3. There should be no other liens, or attachments to the property.
4. The property needs to be left in broom clean condition.

If those conditions have been, or can be met, some lenders will consider a deed in lieu of foreclosure, although most lenders will prefer the use of a compromise, or short sale. This is one of the least preferred alternatives to foreclosure and should be the last option explored.

Call Me Today for Your Real Estate Needs!!  

On Tuesday,  April 27, 2010, the Texas Veterans Land Board (VLB) will once again offer forfeited land tracts to eligible Texas veterans in a sealed-bid sale.

What’s New:

• All winning bids financed through the VLB will be originated as a mortgage loan with a Note and Deed of Trust.   Winning bidders must meet VLB credit requirements if obtaining VLB financing.

• Closing costs and a down payment of not less than 5% of the minimum bid listed  will be required at closing.   The VLB  can only  finance 95% of the minimum bid listed up to  $80,000.00.   In addition, any amount you bid over the minimum listed must be paid at closing, if you are obtaining VLB financing.

Please note:

• ALL  SEALED BIDS must be received by 4:30 p.m. on Monday,  April 26, 2010 (the day before the sale).   No walk-in bids will be accepted on the day of the sale.

• There is a limit on the number of bids you may submit.   You may  bid on  a total of  six tracts in the Forfeited Land Sale and you must list your choice preferences on each bid.

• The sale will be available for viewing via webcast.   Live viewing is not guaranteed, as we have a limited number of connections.   The webcast will be archived and available on our Web site approximately 24 hours after the sale.

For  complete information and instructions, see  Forfeited Land  Tracts  or call toll free:   1-800-252-VETS (8387).

Texas state government is doing the right thing by offering a new tax exemption to a group that truly deserves our respect: disabled U.S. military veterans.Veterans who meet the highest threshold of qualifications will be exempt from paying any property taxes on their homesteads. To qualify for a full exemption, veterans must be classified by the U.S. Department of Veterans Affairs (VA) as being unemployable or having a 100 percent disability rating. Veterans must also have received 100 percent disability compensation from the VA. Veterans wishing to claim the exemption can begin the process by contacting their county appraisal districts.House Bill 3613 from the 81st Texas Legislature allows the complete property tax exemption, which is effective for 2009 and onward. The law, however, does not allow the surviving spouse of eligible veterans to receive the homestead exemption. Surviving spouses do remain eligible for the exemptions for people with disabilities and for people age 65 and older.Another exemption is also available for disabled veterans, including those classified by the VA as less than 100 percent disabled and those qualified for the full homestead property tax exemption. Beginning at a 10 percent VA disability rating, a veteran can get an exemption of $5,000 to $12,000 for any one property he or she owns. For veterans receiving the full homestead property tax exemption, the additional exemption could be applied to non-homestead property.If you or someone you know is a disabled veteran living in Texas, please learn all you can about this important property tax exemption. During these uncertain economic times, it has true potential to help those who have made tremendous sacrifices make ends meet.   Veterans wishing to apply for the homestead exemption should contact their county appraisal districts.    An application form for veterans and appraisal districts to use can be found on the Comptroller™s Web site at http://www.window.state.tx.us/taxinfo/taxforms/vetexempt.pdf.To find information about disability ratings or employability from the VA, call (800) 827-1000 or visit www.va.gov. Disabled veterans receiving a homestead exemption may need to contact their mortgage lenders to adjust their escrow payments.Veterans may also need to contact their mortgage lenders to adjust their escrow payments.

First Time Home Buyers are closer to buying their Dream Home with assistance from the Texas Department of Housing and Community Affairs(TDHCA). This new program gives financial assistance to help make home-ownership affordable for low to moderate income first time home-buyers who have NOT owned a home within the last three years.   Mortgage loan funds at competitive interest rates are now available for a limited time only through TDHCA’s expansive network of participating lenders.   Now, the first time home-buyer can take advantage of a 7% total assistance to help with down-payment and closing costs to obtain their Dream Home.  

¢ Mortgage Loan Funds Available: Approximately $50 million ¢ Interest Rate: 6.25%¢ Loan Term: 30-year fixed interest rate

Eligible first time homebuyers who enter into a contract to purchase their home by April 30 and close byJune 30, 2010 can also take advantage of a one-time federal tax credit of up to $8,000.

There is no fee for making the application for a homestead exemption. Again, there is no fee. However, certain companies offer to œprocess your application for a fee, notifying homeowners by sending you a letter in the mail. These letters usually will start appearing in your mailbox around the first few weeks of the new year.

The Texas attorney general™s office reports that companies in the past have styled their advertising to make it appear that they are an œofficial taxing authority, or that their fee must be paid for the homeowner to get the exemption. Other companies will act as œtax processing centers “ when in fact they™re doing no such thing.

These companies will often mail a very official-looking solicitation letter, saying that for a fee (usually $50 or more) they™ll take care of your homestead exemption application. But the fact is that Texas law requires all these companies to make it clear that they are not a governmental agency. Still, many people are confused by these letters and send in the fees.

Once again, filing for a homestead exemption is free. You just fill out a simple application and mail it in “ no fee required. There™s absolutely no reason to get scammed out of $50 in the process.   If you are a Bexar County resident, you can get an application from the Bexar County Tax Appraiser’s office at http://www.bcad.org.

Qualifying for a homestead exemption is easy. Here™s what you need to qualify:

You must own your home. To qualify for a general exemption, you must own your home on Jan. 1. If you are 65 years of age or older or disabled, you need not own your home on Jan. 1. You may apply for the homestead exemption as soon as you qualify and will receive the exemption as of the previous Jan. 1.

Your homestead can be a separate structure, condominium or a mobile home located on leased land, as long as you own it. And, for all you ranch owners, your homestead can include up to 20 acres if the land is used as your yard. A residence can also be owned by an individual through an interest in a qualifying beneficial trust and can be occupied by a trustee of a qualifying trust.

If you are not the sole owner of the home, you will receive only a portion of any qualified exemption, based on your percent of ownership. For example, you own a 25-percent interest in your homestead valued at $100,000, for a total value of $25,000. You will receive 25% of a $15,000 homestead exemption, or $3,750.

You must use the home as your principal residence on Jan. 1. If you have more than one house, you can get an exemption only for your main or principal residence. You must live in this home on Jan. 1.

If you temporarily move away from your home, you can still get an exemption if you don™t establish another principal residence and you intend to return. For instance, if you enter a nursing home, your home still qualifies as your homestead if you intend to return. Renting part of your home or using part of it for a business does not disqualify the rest of your home for the exemption.   Call me today at 210-789-4216 if you need assistance with you Homestead Exemption claims.