Down payment assistance program

Desert Realty Specialists Presents:
The Riverside County Economic Development Agency
Neighborhood Stabilization Homeownership Program
This Program helps the First Time Buyer with down payment Assistance on a foreclosed home in Cathedral City, Desert Hot Springs, Indio and Thousand Palms California.
Desert Realty Specialists can help you with all of your real estate needs!
For more information contact the Desert Realty Specialists at 760.902.8227 or
sgortz@coldwellbanker.com

Home buying after Bankruptcy

If you experienced:
• Chapter 7
• Chapter 13
• Foreclosure
• Deed-in-Lieu of Foreclosure
• Short Sale

How long must you wait before buying a home?

CONFORMING:
Chapter 7 Bankruptcy: Time elapsed must be 48 months or greater from either the discharge or dismissal date.

Chapter 13 bankruptcy: Time elapsed must be 24 - 48 months or greater from either the discharge or dismissal date depending on Cause of bankruptcy

Multiple Bankruptcy Filings within the Last Seven Years: Time elapsed must be 36 or 60 months or greater from the most recent discharge or dismissal date depending on Cause of bankruptcy

Completion of Foreclosure: Time elapsed must be 36 months or greater. Additionally, the following is required:
• The property must be owner-occupied; and
• The loan must be a purchase transaction; and
The borrower must contribute the greater of 10% minimum down payment or the minimum required for the loan program

• Time elapsed must be 84 months or greater if:
. The property is a second home or investment property; or
. If the loan is a rate and term or cash-out transaction.

Completion of Deed-in-Lieu of Foreclosure: Time elapsed must be 24 months or greater.
FHA:
Chapter 7 Bankruptcy: 24 months since the discharge date and good credit has been reestablished.
• Bankruptcies less than 24 months (but not less than 12 months) may be allowed provided the reason for the bankruptcy was due to extenuating circumstances, the
Borrower has exhibited an ability to manage financial affairs, and the reason for the bankruptcy is not likely to recur.

Chapter 13 bankruptcy: Bankruptcies are allowed after 12 months of the payout period provided performance has been satisfactory and borrower receives court approval to enter into the mortgage transaction.

Completion Foreclosure / Deed-in-Lieu / Short Sale: A borrower whose previous residence or other real property was foreclosed, “Short sold” on or has given a deed-in-lieu of foreclosure within the previous 36 months is generally not eligible.

The View flip magazine

Desert Realty Specialists are proud to introduce The View Flip Magazine! The View magazine is a great way to view Coldwell Banker properties in the Desert community as well as Orange County and beyond. The View magazine will be delivered in the Desert Sun, LA Times and the OC Register twice a month. You can also view the magazine on line at desertviewonline.com. If you have any questions about the View magazine or properties in the magazine you can leave a comment or email me at www.sgortz@coldwellbanker.com

First time home buyer information

Take the Stress Out of Home buying

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the
process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an
emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t
try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your
dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good
home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas
from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate
family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had
hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things
that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by
getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give
and take.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house
itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and
other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate
home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will
make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there
will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first
time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home
and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated
an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a
comfortable, safe place to live.

Loan Modification

Has anyone noticed all of the Loan Modification companies out there? Before you pay any upfront fees or give out your information contact the Better Business Bureau and the Department of Real Estate. There are reports of fraudulent loan modification companies so be careful and don’t become their next victim. You may have notice some highlights on the loan modification words, that happens automatically so if you go to thier website please be careful.

If you need help buying or selling real estate visit us at www.stevegortzrealty.com

Two Great places to stay in Palm Springs!

We would like to thank two Palm Springs businesses for allowing Desert Realty Specialists to be part of their customer service.

Andreas Hotel and Spa – Located at 227 N. Indian Canyon Dr. Palm Springs, CA. 92262 760.327.5701 www.andreashotel.com

Best Western - Las Brisas Resort Hotel – Located at 222 S. Indian Canyon Dr. Palm Springs, CA. 92262 760.325.4372 www.bestwestern.com email: lasbrisashotel@verizon.net

Desert Realty Specialists provides Turn-Key real estate service. We will meet you at your hotel, review your home search criteria and view the selected homes. When you’re ready to discover the desert lifestyle, let Desert Realty Specialists open the door to your desert dream home today!

Email: sgortz@coldwellbanker.com

Visit our website at www.stevegortzrealty.com

Planning to visit an open house?

Buyers: Bring on the Open Houses

More than 90 percent of potential home buyers plan to attend open houses as they look for a home to buy, according to a survey conducted for Trulia.com.

Here’s how they find out about properties open to view:
• 62 percent use online sites to find open houses.
• 53 percent use information provided to them by real estate professionals.
• 36 percent use neighborhood signs.
• 31 percent use information in the newspaper or other printed source
“We used to see home buyers walk into open houses with a newspaper in their hands,” says Aman Daro, vice president of Integrated Marketing at McGuire Real Estate in San Francisco. “Now they walk in with printouts of their search on the Web.”

Desert Realty Specialists Presents: Real Estate Information You Can Use

HUD: Tax Credit Can Be Used on Closing Costs

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent down payment.

There remain many sources of assistance for buyers needing help with the 3.5 percent down payment, including many state and local government instrumentalities and nonprofit lenders.

In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states who’s HFAs offer such programs can monetize the tax credit upfront to cover all or part of their down payment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

For more information contact your Desert Realty Specialists today!
email sgortz@coldwellbanker.com

Desert Realty Specialists Presents: Real Estate Info You Need!

FIRST-TIME HOMEBUYER TAX CREDIT of 2009


In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale.

For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.

Tax Credits -- The Basics

What’s this new homebuyer tax incentive for 2009?

The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

Who is eligible?

Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

How does a tax credit work?

Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)

So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?

This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($8000 - $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.

If you would like to learn more about this tax credit email me at sgortz@coldwellbanker.com