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

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

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.

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.

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!!  

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).

¢ 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.

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.

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.