Hello world!

Greetings Everyone!

I am Diana Margala and this is my blog.

I am a Real Estate Agent in Upland, CA and I currently own Inland Valley Professional Group, Inc. I have been practicing Real Estate for 9 years. In my experience, Real Estate is one of the most important decisions people will make in their life. This market we are in requires skill, knowledge and proficiency. Whether you are buying your first home, selling your home, or an eager investor, it is important to become familiar with the local Real Estate Market.

Buying and Selling a home can seem overwhelming. Yet like everything in life knowledge is key! Hopefully you will find some valuable information within my blog posts and if there is something you would like to know about that I haven’t posted yet, please feel free to email me and I will be happy to give you information.

Remember… be safe and make decisions with knowledge!

Diana (909) 945-5763

I’m loosing my house anyway, why should I pay my HOA?

For all of the homeowners who have an HOA, keeping them current is important for many reasons!!

1. If you are trying for a loan modification, your HOA bills will need to be kept current and will be due if you stay in your home.
2. I understand that you can’t make your house payments because of a life altering situation but did you know that your non paid HOA dues must be paid current to sell your home in a short sale?  

Did you know that if the buyer is getting a loan, most lender (investor) requirements will not allow the buyer to pay a bill that is owed by the seller, so they may not allow the buyer to pay the back HOA liens?

1. If you are served with an intent take notice, because in one month you will have a lien, once the bill becomes a lien then the amount goes up and the lien can follow you even if your property is forclosed.

So keeping your HOA current is important no matter what your future is with you home or condo.

Information is FREE but knowledge is Priceless….contact Diana for all your Real Estate Needs

Diana Margala 

909-560-0145 or Diana@DianaMcom

www.DianaM.com

The “Real” Difference in Real Estate

Buyers Expenses, Part II

Now you can look, knowing that you can purchase the home that you’ll fall in love with, as long as the home qualifies for the type of loan that you will be getting.  But how do you know that the home is what you think it is?  And that the property will qualify for the type of loan that you are getting?  That is when the buyer has to pay for some of the inspections and the appraisal.

An appraisal is performed so that the lender who will be lending you the money on the property you are purchasing is comfortable with his investment.  He has already indicated that he is comfortable to lend you the money, now he must know that the property will be worth the amount of money that he will be lending you.    Depending on the type of loan and the amount that you will be investing in the property as the down payment, can make a difference on the standards that are required by the lender on the home that you are purchasing.  The appraiser could indicate different things on the appraisal that might need to be repaired in order for the lender to lend on the property.   Depending on the type of sale the owner may or may not be willing to complete those items and if those repairs do not get completed you would not be able to purchase the home because the lender will not lend on that home.  You will have spent your money on the appraisal and you would not be able to continue with this purchase, unless other negotiations are done to solve this problem.  It also will give you and the lender comfort that the home is valued at what you are paying for the home, or allow you to possibly renegotiate if the home is not worth the amount that you offered.  (But remember that the contract was for the amount you offered, if the property does not appraise, you and/or the seller have a right to cancel the agreement or re-negotiate the terms and continue forward with the purchase.)  You want to get this done right away so that if there are problems they can be addressed in the time allowed by the contract.

The other expense of the buyer is the Home Inspection.  A standard home inspection is to find out the general information that might be found regarding the property.   If there are concerns that come up in this first investigation it might trigger other inspections that you might want to perform (example, if it looks like there might be a problem with the roof, you may want a roofer to come out and see what the repairs might cost.), but this will give you the overall condition of the property.  You always have a right to ask the seller to complete any repairs that you might find, however the seller has the right to say yes or no.  If they are unwilling or not able to do the repairs that you have asked, then you have the right to no longer purchase the property (again you will have already paid for the inspection and you will not be getting that money back).  The importance is that you now know what condition the property is in that you are purchasing and if you feel that the property is still worth the amount that you are paying.

Because of the standards of loans now and the type of transactions (Short Sales and REO) many times Termite Inspections are not included in the contract. However as a buyer you have a right to purchase a Termite Inspection so that you can be comfortable with the condition of the property that you are wanting to purchase. Again this could be a cost that you would spend even though you may not go forward with the purchase of this property.

There is a standard document called the Statewide Buyer and Seller Advisory, which explains many of the things that might be of concern for you regarding your property and what a buyer and a seller are required to do when buying or selling Real Property.  This is a great document and might bring up questions that you might not have previously thought of but should be important to you because they might effect the value of the property.

If the home has too many items that are a problem for the buyer and/or if the property does not appraise for what was offered, then it is time to either negotiate (getting both the buyer and seller to agree) or the buyer may choose to no longer purchase the property.    Even though this can be costly for the buyer, it could save the buyer a lot of money that he may not know he would have to spend if he went forward with the purchase without knowing what problems there might be.

Information is FREE but knowledge is Priceless….contact Diana for all your Real Estate Needs

Diana Margala 

909-560-0145 or Diana@DianaMcom

www.DianaM.com

The “Real” Difference in Real Estate

Buyers Expenses, Part I

Why does a buyer have to spend money to find out if the house they write an offer on is the right house?

The first thing a buyer needs to do in order to purchase a home doesn’t cost money.  Before he and/or she even starts looking the buyer needs to get pre approved to make sure they are comfortable with the payments on the home or condo that they might want to purchase.  The recipe to getting approved is: the proof of down payment and closing costs, credit score, your employment (verifiable employment or income), and your ability to pay back the loan (which is shown by your bank statements, your pay stubs, your tax returns and your credit scores which indicates your other bills), commonly called the debt ratio.  All of these things are needed to determine your interest rate, term of loan and type of loan that is available to you.  Once you have an approval your next step is a Realtor.

Even though most people know how to search the internet to find homes, they are still in need of a realtor to help with the following:

-       Information regarding the contract that they will be signing

-       What their rights and responsibilities are

-       What California laws effect their purchase

-       How it works

-       What makes them look better as a buyer opposed to other buyers

-       Weather it is in the city or the county jurisdiction

-       Where to find information regarding the property that they are interested in purchasing (permits, school districts, county or city laws that might apply to them and let’s not forget Mello Roos, CFD’s or other taxes that might effect the property)

-       How much the property might be worth

-       Managing all of the people involved in the transaction (each one is like a thumb print…different owners, different property, different lenders both the ones that have the loan now and the lender they will be using, appraiser, home inspection, HOA, title companies, escrow companies and of course the realtor that represents the seller)

-       Is the property going to have problems qualifying for the type of loan that you are getting?

-       Lastly with all of the Short Sales and REOs, how to navigate through their purchase and how that process is different from a standard sale

Once you are approved, the assumption is that all things being equal and as long as things don’t change for you (you don’t do anything to change their ability to purchase, change jobs, get new lines of credit, spend your cash that you have provided for proof of closing costs, purchase a car, student loans become due etc.) and the loans that are available don’t change, then they will be able to purchase a property at an amount that you have been approved for.

 

Information is FREE but knowledge is Priceless….contact Diana for all your Real Estate Needs

Diana Margala 

909-560-0145 or Diana@DianaMcom

www.DianaM.com

The “Real” Difference in Real Estate

Short Sale Scams

Don’t fall victim to a short sale or loan modification scam.  What is some of the enticing marketing that could just be a scam to take advantage of you?   You are already in a desperate situation. Not being able to make your mortgage is a terrible place to be, one in which we seem to look for an answer that is too good to be true.

How to Recognize a Mortgage Scam

You might be a victim of a scam if:

• You are told you will get a federal incentive to walk away from your mortgage
• You are asked to pay upfront for counseling
• You are pressured to sign papers immediately
• You are asked to sign your house over to a company or person who is not working with your mortgage company
• You are asked to make a mortgage payment to someone other than your mortgage company without their approval
• You are guaranteed a successful short sale or mortgage modification
• They claim to be a representative of the federal government

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If you believe that you are or have been a victim of a scam, you should contact the Federal Trade Commission (FTC) at 1-877-FTC-HELP (1-877-382-4357) or visit their Complaint Assistant https://www.ftccomplaintassistant.gov.

For Free Consultations on what could be your alternatives to foreclosure are, contact me!

Diana@Dianam.com, call or text 909-560-0145, or visit my website.

I would be glad to assist in any way I can.  I offer Free Consultations: 

Find Out Your Options

Don’t wait until it is too late!

Information is FREE but knowledge is Priceless….contact Diana for all your Real Estate Needs

Diana Margala 

909-560-0145 or Diana@DianaMcom

www.DianaM.com

The “Real” Difference in Real Estate

What are the problems with obtaining a loan for Condominiums?

First time home buyers many times want to purchase condominiums because of the price and because it appears to be an easier purchase for a first purchase. However recent changes in the approval and review process have made it more difficult to purchase due to the price many Condo’s have been purchased at by investors making the % of owner occupied units fall below what is necessary to get the loan approved or possibly the ability for the lenders to get Mortgage Insurance.  This may cause an individual a problem when it comes to getting a loan on the condo.  Many of the first time home buyers also will be purchasing using an FHA loan, however many of the condominium complexes are no longer FHA approved.

The web site to verify if the property is VA approved is:

https://vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch 

and FHA is:

https://entp.hud.gov/idapp/html/condlook.cfm

It has become much harder to get a loan on condominiums. 

Make sure you work with a lender and a Realtor who understands these challenges when looking at Condominiums because it is better to look at these financing challenges at the beginning of the transaction, as opposed to later.

Condominium defined:  A form of ownership where units are owned by individuals but the land and common areas are owned jointly with all owners.

How do you know if what you are looking at is a Condominium?

1.     Do not accept MLS information or verbal information.  Get a copy of the legal description.

2.      Do NOT rely on the project name for determination.

3.    READ the legal description. Does the legal description of the unit include the lot?

A little leg work up front can make the difference between wasted time and money on appraisals and home inspections if there is a problem up front, but remember not all things are preventable or predictable…your purchase will be a shot in time and if there are problems with owner occupied ratio or vacancy ratios that show up at the last minute, that can still cause a problem.

 

Information is FREE but knowledge is Priceless….contact Diana for all your Real Estate Needs

Diana Margala 

909-560-0145 or Diana@DianaMcom

www.DianaM.com

The “Real” Difference in Real Estate

Can an Investor purchase a Short Sale?

Yes an investor can purchase a short sale, but there are some pit falls that should be noted.  If an investor wants to purchase and flip a property it appears that the problem with most of the properties in the Inland Empire are that the banks are not giving anyone “good deals”. The banks get BPO’s on the properties and they are selling them very close to value. What an investor would need to do is have cash and look for properties that banks will not lend on, or properties that need major repairs. Those are the properties,(whether they are short sales or REOs), that you have the opportunity to get better deals.   After acquiring the property they will need a great team to fix them. Property prices have actually been pretty stable so the good deals aren’t there and banks have systems in place to determine the values of the home, and usually they won’t take much more than 0-5% under market.  If it is a good value, there are lots of bids on the property and usually it is bid up by the competing buyers.

If an investor is putting an offer on  a Freddie Mac property, (whether it be a short sale or a REO), it is important to realize that Freddie Mac has an agenda to make the properties available for home owners who are purchasing the property as a primary principle residence. They are more interested in selling them to non-investors.  Their goal is to stabilize the market and get home owners into the homes. That is why you see some homes listed that are not available to investors for the first 15-30 days.

Another concern for the investor is the 90 day flip rule, so they would need to hang on to the property for a minimum of 90 days for the new buyer to be able to get a loan.  (The way around this is complicated and usually doesn’t work; it has to do with cost of repairs.)

If you approach a homeowner that is in distress (NOD filed) on your own as an investor or through a Realtor and the homeowners are living in the property, there are laws in California on what type of form you use to place an offer on this property…there is a Huge fine if you use the wrong form and the seller has a rescission clause.

Almost all short sales require an arm’s length form completed and notarized by all parties, to make sure that you are not related to the seller and that you are not allowing them to live in the home after you own the property.

I really think that the market is now more purchase and hold, as long as the numbers make sense to the investor and you can afford it, I think this makes the most sense. It reminds me of having someone else putting money away in a savings account for you. So as an investor Short Sales will work if they are planning on holding the property and renting it out or it is a property that needs a lot of repairs.

 

Information is FREE but knowledge is Priceless….contact Diana for all your Real Estate Needs

Diana Margala 

909-560-0145 or Diana@DianaMcom

www.DianaM.com

The “Real” Difference in Real Estate

Foreclosure Timelines: Actual Law, but not necessarily the practice.

Several recent laws have impacted the foreclosure timeline.  The California Legislature added an additional 90 day extension after the recordation of the NOD (notice of default) but this was repealed effective January 1, 2011.

Another law expires January 1, 2013 effects the time lines for loans made between January 1, 2003 and December 31, 2007 on residential one-to-four units owner –occupied properties, this law adds 30-days to the borrower contact period before the lender may record an NOD.

In counting the days remember that if the final day of performance falls on a Saturday, Sunday or holiday, then the day for performance becomes the next business day.

 

Loans Made between  January 1, 2003 and December 31, 2007 one –to-four units owner occupies,

Day 1 (Cal.Civ. Code 2923.5(a) the lender must contact the borrower by phone or in person to assess the borrower’s financial situation …During this conversation the lender must inform the borer of the right to meet with the lender within 14 das .  The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency.  (Mabry v Aurora Loan the court held that the borrower can file an injunction to postpone the foreclosure sale if the lender didn’t comply with this law, but they could not overturn the foreclosure sale once it has been conducted)

Day 31  RECORD THE NOD  the NOD must be filed in the county where the property is located (se Cal.Civ. Code 2924c(b)(1) for the proper language. Within 10 days after recordation of the NOD, A copy of the NOD must be mailed by registered or certified mail to the borrower/trustor and to any parties with a recorded request for Notice (like the second) Within 30 days after recordation of the NOD the lender must mail a statutory notice to the borrower.

Day 116-121 Record the Notice of Trustee Sale  The Notice of Trustee’sSale must set forth the date, time and place of the Sale.  It must also include the total amount of the unpaid balance and reasonably estimated costs, expenses and advances at the time of the initial publication of the Notice.  It MUST BE RECORDED, POSTED, PUBLISHED AND ALSO MAILED BY REGISTER OR CERTIFIED MAIL AS WELL AS FIRST CLASS MAIL TO THE BORROWER (Cal. Civ. Codes 2924f)

25 days prior to Trustee Sale Notice of Sale sent to the IRS in case there is an IRS lien recorded more than 30 days before the date of sale.

20 days prior to Trustee Sale  Notice of Trustee’s Sale must be recorded at least 20 days prior to Sale, notice of Sale publication begins (must run once a week for 3 consecutive weeks in a newspaper of general circulation) Notice of Sale must be mailed by registered or certified mail to everyone who is entitled to receive a NOD  In addition the Notice of Sale must also be mailed 1^st class mail to the borrower.

DAY 135  Last Day to Cure Default:  Up to 5 days before the Trustee’sSale the borrower may reinstate the loan (bring it current) by paying the missed payments plus allowable costs.  NOTE If the Sale is postponed the date that the borrower may reinstate is postponed accordingly.  (Cal. Civ. Code 2924c(e))

DAY 141:  Trustee Sale Foreclosure: After the last day to cure the default, the borrower still has the right to redeem the property but he/she must pay the entire debt, plus interest and costs before the bidding begins at the Sale date (Cal. Civ. Code 2903, 2905)

At the Trustee’sSalethe property is sold through a public auction to the highest bidder.  Title is transferred to the successful bidder by Trustee’s Deed

 

All other Loans: ( Loans Before January 1, 2003 or After December 31, 2007) 

Day 1  RECORD THE NOD  the NOD must be filed in the county where the property is located (se Cal.Civ. Code 2924c(b)(1) for the proper language. Within 10 days after recordation of the NOD A copy of the NOD must be mailed by registered or certified mail to the borrower/trustor and to any parties with a recorded request for Notice (like the second) Within 30 days after recordation of the NOD the lender must mail a statutory notice to the borrower.

Day 186-91 Record the Notice of Trustee Sale  The Notice of Trustee’sSale must set forth the date, time and place of the Sale.  It must also include the total amount of the unpaid balance and reasonably estimated costs, expenses and advances at the time of the initial publication of the Notice.  It MUS BE RECORDED, POSTED, PUBLISHED AND ALSO MAILED BY REGISTER OR CERTIFIED MAIL AS WELL AS FIRST CLASS MAIL TO THE BORROWER (Cal. Civ. Codes 2924f)

25 days prior to Trustee Sale Notice of Sale sent to the IRS in case there is an IRS lien recorded more than 30 days before the date of sale.

20 days prior to Trustee Sale  Notice of Trustee’s Sale must be recorded at least 20 days prior to Sale, notice of Sale publication begins (must run once a week for 3 consecutive weeks in a newspaper of general circulation) Notice of Sale must be mailed by registered or certified mail to everyone who is entitled to receive a NOD  In addition the Notice of Sale must also be mailed 1^st class mail to the borrower.

DAY 105  Last Day to Cure Default:  Up to 5 days before the Trustee’sSale the borrower may reinstate the loan (bring it current) by paying the missed payments plus allowable costs.  NOTE If the Sale is postponed the date that the borrower may reinstate is postponed accordingly.  (Cal. Civ. Code 2924c(e))

DAY 111:  Trustee Sale Foreclosure: After the last day to cure the default, the borrower still has the right to redeem the property but he/she must pay the entire debt, plus interest and costs before the bidding begins at the Sale date (Cal. Civ. Code 2903, 2905)

At the Trustee’sSalethe property is sold through a public auction to the highest bidder.  Title is transferred to the successful bidder by Trustee’s Deed

 

Information is FREE but knowledge is Priceless….contact Diana for all your Real Estate Needs

Diana Margala 

909-560-0145 or Diana@DianaMcom

www.DianaM.com

The “Real” Difference in Real Estate

What items are needed to apply for a Short Sale?

This is just the beginning of what could be a long process.  Your cooperation and participation in the process are imperative for success.

The items below are items that the bank could require from you, and all the people on the loan, which we will actually need to provide to the lender. Your loan number will need to be imprinted on the top of each page.

1       Two (2) Current pay stubs (update as you receive them)

2.     Two (2) Most Recent Bank Statements (update each month)

3.     Your most recent two years W2′s

4.     If you are Self-employed, you must provide 4 months of the most recent bank statements  and most recent tax return

5.     Your most recent mortgage statement and other related correspondence (Both loans if applicable.)

6.     HOA Statements (HOA’s must be kept current)

7.     Your most recent two (2) years tax returns (sometimes they go back more years)

8.     IRS Form 4506-T Request for Transcript of Tax Return –

9.     Dodd-Frank Certification

10.   Hardship Letter (verification in death, medical and/or divorce) It should be one page and basically explain why you            are unable to continue paying your mortgage.

11.   Pre Lim (Your Realtor will obtain for you)

12.   Notarized Arms Length Transaction (once you have an accepted offer)

1. Monthly list of expenses:  They could include the following items but usually each bank has a form that you will need to complete and sign.

 

Real Estate Loans_____________(monthly payments include Principle, Interest, Taxes and Insurance).

Personal Loans _____________

Credit Card Debt $  _____________(total)

Minimum Monthly Payments $___________(total)

Utilities (also: include cable and Internet) ____________

Insurance, (health care and car) costs _______________

Food and Clothing __________________________

Medical Bills _______________________________

Child care _________________________________

Child support ______________________________

Phone  (include cell) _________________________

Tuition expenses____________________________

Gas and Maintenance on cars ___________________

 

These are other items that could affect the success of a short sale.

1.    Do you owe back spousal support?  Y  N

If so how much and to whom? If so how much and to                                                                                                                                               whom:_____________________________________________________

2.    Do you have any personal liens or judgments ?    Y N

If so how much and to whom:_________________________________________________

3.    Are your taxes current on your home?   Y   N

If not how much do you owe?  ________________________________________________

4.    Are your HOA current  N/A  Y   N

If not how much do you owe?    _______________________________________________

5.    How many months are you behind on your mortgage payment? ______________________

6.    Do you have any assets (401K, IRAs, bank accounts, other property, CDs, etc.                                                                                       List:___________________________________________________________________________________________________________________________________

 

As you can see the bank will be verifying if you truly have a hardship and do not have the means to pay your obligation before they will grant you a short sale.  The communication needs to be continuous with the bank and making sure that your paperwork and file is complete and accurate is important to the success of your short sale.  It is a long and arduous process, however it is usually a better recourse to the homeowner than a foreclosure.

Is a resent HARDSHIP causing you to lose your home?

It seems that the general rule of thumb is that if you have a hardship, your first chose for an alternative would be to obtain a loan mod.  If you are seeking a loan mod it appears that the payments that you might qualify for could be base on  31% of your gross income.  (This is where the determination is as to whether they may or may not lower your principle, change your interest rate, increase the term etc. to reach the number of what they may lower your payments to.)   If your debt on other items such as cars, student loans, personal loans, credit cards, line of credit and 2nds  are high (50% or more of your gross monthly income) then your debt ratio may not be in line with what will be acceptable.  Understand in essence you  are actually re-qualifying for the loan on your home.

If you do not have a job or proof of income, then you will not be able to qualify for a loan mod.  The days of just saying yes I can are gone.

The banks need to know if they change the structure on your loan that you will be able to pay it back.   Indications are that the loan modifications are more likely to be done if the loan is owned by Fannie or Freddie or by a bank that is FDIC insured because there are incentives.  Private investors who hold the notes are less likely to modify.  Where you pay your bill may just be a servicer and not be who actually holds your note, ask who hold the note.    Remember that the loan mods usually only effect the first loan and are usually only for owner occupied homes, however there have been some cases where the 2nd loan can be restructured too.

If you are in threat of loosing your home you should never pay upfront fees for foreclosure prevention services. Reputable help is available for free from HUD-certified housing counseling agencies. Go to  www.hud.gov/foreclosure  Always contact your lender first, they many times have plans in place.

Working with your lender is not easy, it takes time and patience; always keep notes as to when you called and how you talked to and what they said.  Continue to call at least every week.

If you find that the loan mod doesn’t work for you or you would like to know your options as to a loan mod or short sale, give me a call at (909) 560-0145 and we can go over those options.

Who Qualifies for a Short Sale?

A short sale can be an excellent alternative to foreclosure and is meant to be a solution for homeowners who need to sell, and who owe more on their homes than they are worth.

What does it mean when it says “needs to sell”? A homeowner may need to sell, because their job has relocated them more than 50 miles away from their home and yet it must be further than their location now.  Other reasons might be because of an illness they can no longer live in a two-story home, their family has increased in size and the home no longer accommodates the size of their family. There has been a divorce, illness, job loss or death.

In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here’s a more official definition:

• A homeowner is ‘short’ when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances: (Remember, they also must be provable.)

• Financial Hardship – There is a situation causing you to have trouble affording your mortgage. (loss of job, cutting of hours, medical bills, student loans, divorce, etc.)
• Monthly Income Shortfall – In other words: “You have more money going out than money coming in.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.  (remember if your credit card debt is high and the lender sees that you are making your credit card debt, they will wonder why you wouldn’t pay your mortgage and skip credit card debt.)
• Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals.  Check out my Website for more information..

Remember It’s not a solution to the fact that your home is not worth what it use to be worth if you don’t have a hardship!