Archive for September, 2010
Foreclosure Relief Scam With A Twist
INDUSTRY NEWS, SHORT SALES, TIPS FOR SELLERS
The Federal Trade Commission (FTC) issued a warning to consumers regarding a foreclosure rescue scam designed to exploit financially struggling homeowners. The scam service offer promises to perform a forensic audit of your mortgage loan documents to determine if your lender complied with state and federal lending regulations. The “auditors” claim you can use the audit to:
- avoid foreclosure
- accelerate the loan modification process
- reduce your loan principal
- cancel your loan obligations
In reality, these scam artists are using half truths and outright lies to get the upfront fee of several hundred dollars according to the FTC. I have had clients from Redding/Shasta County ask me about these services and I actually spoke to one such “auditor” located in San Juan Capistrano. He wanted to charge my client several thousand dollars to conduct the audit. When I pressed him for details and a guarantee, he made it clear there was no guarantee they would find anything and the fee was non-refundable. I told my client to not pay this company a dime and we subsequently completed a short sale.
Red flags to look for and avoid include:
- guarantees to stop the foreclosure process-no matter what the circumstances are
- instructs you not to contact the lender, lawyer or credit or housing counselor
- collects an upfront fee before providing any services
- only accepts payment by cashier’s check or wire transfer
- suggests you rent your home so you can buy it back over time
- asks you to transfer your property title
- offers to buy your house for cash at an inflated price inconsistent with current market values
- pressures you to sign papers before you’ve had a chance to read them thoroughly
For legitimate help, call 1-888-995-HOPE for free certified housing counseling from HUD. The national hot line is open 24/7 to assist you in a foreclosure avoidance strategy.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
Why Move To Redding?
REDDING LIFESTYLES, REDDING RECREATION, SHASTA COUNTY
I ask that question of every out-of-town prospect I have shown property to in the past 26 years and the answers have some common denominators. Here are the most common responses:
- To be closer to family
- To get away from more eartquake prone areas of California
- To be closer to recreational areas for boating, fishing, hunting and camping
- To escape the crime, congestion and smog of urban areas
- To be away from perceived targets of terrorism
- To be in a warmer climate
I moved to Redding in the early 1980’s for several of the above reasons. First, I experienced several large earthquakes while growing up in the SoCal area and while attending college on the North Coast. I didn’t want to live in an area where large earthquakes were common. Secondly, I love mountains and lakes and found Redding’s location the ideal spot to take advantage of California’s natural wonders. Next, the absence of lung burning smog was an important attribute attracting me to Shasta County.
I have lived in Washington and Idaho and traveled to most of the Western States and always looked forward to returning to Redding. Despite lacking some of the cultural activities offered by larger metro areas, Redding has much to offer those that wish to live in a rural area surrounded by natural beauty. Enduring some hot summer weather and cool rainy winters is small sacrifice for months of mild days and beautiful vistas!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
Time To Consider Streamline FHA Home Loan Refinance?
For years, borrowers utilizing loans insured by the Federal Housing Administration could apply for a refinance
to lower their interest rate without all the headaches of full documentation and fees. Today, homeowners with FHA loans can take advantage of historically low rates with even less hassles.
Here are some important details:
- Must have a 660 credit score or better
- Existing loan must be at least 6 months old
- No thirty-day late payments in past 12 months
- Lender will call wage earner’s employer for verbal verification of employment
- Self employed borrowers must provide copy of business license or prove existence of business
- All “other” income must be documented
- Borrower must have appropriate debt-to-income ratios
In some cases no appraisal is required- the original appraised value is used. Currently, interest rates are below 4.5% for borrowers with good credit. If you are paying 6% or more on your existing FHA loan, taking advantage of today’s rate could result in 25% of interest savings. A $200,000 loan at 6% interest is roughly $1,200/ month for principal and interest, not including taxes, insurance or mortgage insurance. At 4.5%, the payment would be $1,013. If the loan refinance fees were about $2,500, you would break even in about 14 months, then save about $183/month thereafter.
For more particulars regarding an FHA refinance, contact Wayne Barni of Choice Funding at 530-224-6707.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE EXPERIENCE
Accuracy of Zillow Home Values Questioned
INDUSTRY NEWS, TIPS FOR BUYERS, TIPS FOR SELLERS
For more than five years now, consumers have had the ability to go online and get free value estimates of their home’s worth. However, some consumers and real estate industry professionals have expressed concerns the valuations are inaccurate and misleading. Reasons cited in a recent Sacramento Bee article include:
- Values assigned without taking into consideration features and upgrades of the subject property. Sometimes the value price range is $20,000-$40,000 more or less than the actual value of the home.
- Even homes of the same size and in the same neighborhood can vary in price due to quality and feature differences. Utilizing the services of a local REALTOR helps minimize inaccuracies plus their service is free.
- Websites like Zillow, Cyberhomes and Eppraisal.com can educate homeowners and buyers by providing a reasonable estimate of value, however, working with a local REALTOR is still the best option.
I have worked with buyers and sellers that used Zillow to check values but I too have found wild inaccuracies. Instead of averaging values to reach a cost per square foot and applying it to the property in question, REALTORS will adjust for differences including age, lot size, garage size, swimming pools, landscaping, views, condition and upgrades. I’ve heard stories of sellers relying on a Zestimate to sell their own home leaving thousands of dollars on the table because the value was too low. Others didn’t accept a reasonable offer because the Zestimate was too high relative to an offer in hand. Don’t trust a free web appraisal to decide on a sale or purchase price. You could get burned!!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
PREMIER SERVICE® is the focus of Real Estate Professionals/GMAC. We are located in Redding, CA (at the North end of the Sacramento River Valley) in the midst of river, lake, ranch and mountain terrain.
Our Customer Satisfaction Rating, based on an independent survey, exceeds 97%. This is reflected in our 2008 "QUIE" Award recognizing the TOP 10 REAL ESTATE COMPANIES in NORTH AMERICA! REP/GMAC in #2.
