Real Estate Agent – Orange County, California – Pat Monahan

The Federal Homebuyer Tax Credit  has been extended beyond November 30th of 2009. The new rules include a deadline to be in escrow or under contract by April 30th of 2010 and close the purchase by July 1, 2010. First-time buyers, those who have not owned their principle residence during the past 3 years, are eligible for a tax criedit up to $8,000. Also, current home owners who have lived in their principle residence for 5 consecutive years of the past 8 years are eligible for a tax credit up to $6,500.

The home purchase must be for a principle residence and it can include a boat, motor home or traditional house, condo or townhome up to an $800,000 limit. There are income limits to the new benefits extention. They are $125,000/yr for a single person and $225,000 for a couple.  A purchase by a dependent is not allowed. See your tax advisor for more details.

The good news is that more people can get tax relief when they purchase their next home through April 30, 2010 or have a binding contract to purchase on April 30th and close by July 1, 2010.

The other good news for home buyers is the historically low mortgage interest rate and the reduced market values for homes. This is a combination that probably won’t be seen again in our lifetimes. Contact your realtor to find the best buying opportunites in your area.

I have lovely coastal homes in all price ranges from Orange County to Long Beach, CA. I will find the right one for you. I’m only a click away!

Orange County real estate sales in the price category below $500,000 is taking off big time! Multiple offers by serious buyers are coming at any below market listing. Many of these listings (both condos and single family detached) are distressed sales, either bank owned or in foreclosure. An equity seller must compete with the distressed properties and lower their asking price to be taken seriously.

Investors with all cash or substantial cash downpayments are competing with firsttime home buyers who want their piece of the American dream. It is so very important for firsttime buyers to be pre-approved for a loan and have it in writing from a “direct lender”. A direct lender backs the mortgage from its assets. A major bank or a credit union is an example of a direct lender. There are others who also qualify as direct lenders. Some mortgage companies are direct lenders. It’s important to know who you are dealing with, because many bank owned listings will sell to a buyer who is financing the purchase with a mortgage only if the mortgage is from a direct lender.

The mortgage interest rate is still historically LOW – below 5% for a fixed rate conforming loan. With house values as low as they are it makes sense to be buying a home at this time. Remember that you are buying a home first, not an investment. As we have seen all too clearly, speculating that house prices will always go up can be a big mistake. But if you have been waiting to take advantage of low interest rates and low home values, your time is here!

You may have to bid above list price to get the house you want. As with any auction you may lose to someone who offers more. Don’t be discouraged. Find an experienced realtor to help you find a house and negotiate for it.  Or, visit the auctions and try your luck there. But it is “buyer beware” out there because you purchase a property “as is” at an auction. There can be tax and reconveyance issues to contend with as well as repairs that may cost you more than you bargained for.

As a member of a special group called ROHRS, I have information about bank owned properties and how to “package” an offer for the bank to consider.  Many offers on bank owned homes never get seen by the bank, if they are not packaged properly. You must work with an experienced realtor who will get your offer seen by the bank’s representative. Once your offer is accepted you will have a limited time to have the home inspected and your loan funded. It’s a balancing act that requires everything to happen correctly. Let me know if I can help you.