Marsha Dashiell's Real Estate Blog

New research from Ohio State University suggests that homeowners who obtain home loans from local mortgage lenders are less likely to default than those who borrow from more distant banks.

The researchers noted that even if two similar homeowners received the same type of mortgage with the same interest rate, the borrower who went with the local bank might be better off.

“The door you walk into when you’re looking for a loan matters a lot,” said Stephanie Moulton, assistant professor in the John Glenn School of Public Affairs at Ohio State University, in a statement.

“Local banks seem to offer some protection to homebuyers, particularly those with low incomes who may be seen as risky borrowers.”

Moulton attributed the phenomenon to more prudent underwriting at local banks, who tend to look at income and employment history more closely to ensure borrowers can actually make their mortgage payments.

“Many mortgage brokers base their decisions on whether to offer a mortgage on one or more key numbers, such as a credit score,” she added.

“In other words, if your credit score is above a certain level, and you meet other criteria, the broker will offer the loan. The same may be true of large, non-local banks.”

But local banks and lenders typically have established relationships with their borrowers, including checking/savings accounts, so they know more about those being extended home loans.

Many of these local banks also get their borrowers to set-up automatic mortgage payments, which could lead to a lower default rate.

All that said, you should always shop around to find the best mortgage rates!

If you are new to the area and need recommendations on a bank, give me a call. I will be glad to help. You may also call my loan officer Roland Benson at 916-768-1578 for any questions you may have in regards to your qualifications and your home loan options.

As you may or may not know by now, I am constantly searching for ways to help people achieve their American dream of home-ownership. I have just recently stumbled across this great program and felt obligated to share this with you guys. For more information, please call me at 916-580-5400.

The CHF Platinum Program

This grant program provides down payment assistance for low-to-moderate income individuals and
families purchasing a home. Homebuyers can receive up to 3% of their first mortgage to be used
as a down payment and/or closing costs.

! Primary residence, owner occupied

! Does not have to be a first-time homebuyer

! Minimum 620 credit score

! Income limits apply

! FHA loan only

! 30-year fixed rate

! Grant funds can not exceed 3% of the first mortgage

! Grant funds can be used for down payment or closing costs

Less than 90 day flips are not permitted with this program.

Home Purchase Example

(reflects new FHA changes effective October 4, 2010)

Sales Price
FHA 1st Mortgage
FHA Minimum Down Payment
CHF Platinum Grant
Buyer’s Down Payment

$325,000
$316,761
$11,375
$9,503
$1,872

96.5% LTV (includes UFMIP)
3.5% of Sales Price
3.0% of 1st Mortgage

Contact me today to learn more about this assistance program.

Please call for more information

Roland Benson
Sales Manager
916 746 8412
Direct
916 768 1578
Mobile
877 863 6075
Fax
NMLS ID 353144
roland.benson@imortgage.com

imortgage
3013 Douglas Blvd., #205
Roseville CA 95661

Rates, terms, and availability of programs are subject to change without notice.
Licensed by the Department of Corporations CRMLA #4130969

“SHORT SALE” – This terminolgy can be seen everywhere, especially in today’s fragile housing market. Never before, has the word “short sale” been in the real estate launguage as much as it has been recently. The problem is, not too many homeowners know exactly what it means and how it may benefit them.
Here is a great explanation of what a “short sale” is and what exactly is involved in the process. I hope this helps.
The term “Short Sale” means to sell the bank short of what they are owed. As an example take a $100k house with payments of say $700.00 per month. Once this house goes into foreclosure the process can take 12 to 18 months just to get the house back in the banks name. The bank has to hire an attorney etc… to file the foreclosure so lets look at the numbers to understand the short sale process:

Original Balance: $100,000.00
While in foreclosure the bank doesn’t collect payments so 18 Months Payments lost 18 x 750.00 = $13500.00
The cost of an attorney easily will cost $20,000
Lost interest, fees etc….$2500.00

I haven’t included all of the banks cost here but we are already up to about $136,000.00. Add to the fact that this process can take over a year and the bank still wont have their money all they will have is a vacant property that can still take a long time to sell if it isn’t in perfect condition. And this problem is really exacerbated if the value has gone backwards which could put them $50k or more in the hole Once you understand this then you begin to understand the short sale process.

Now back to our $100k example. The bank knows they are about to lose $50k in fees, lost opportunity costs etc…. so they put the property up for short sale. The bank realistically in this situation will probably take any offer over $80k as it would actually be saving them money even though on paper they are losing $20k plus. To have the $80k now is a blessing rather than take a $50k hit later. This is the very essence of short sales and in today’s market banks are willing to do this.

The reason you need a bank to approve is they have to run the numbers like i just did. They will take the offer they have an calculate current losses with your offer and then estimate losses if they hold onto the property and look at which one nets them more. If the short sale offer nets them more now than they will get in the long run you will likely be accepted.

Once the bank accepts your short sale it is now on you to close. They don”t care about your down payment or anything of the sort all they care about is you cashing them out. You will still need to have either all cash or a loan all setup before they will even start the short sale process with you as this process costs them money as well and they only want to entertain offers with those that are qualified.

If you have any further questions, or would like to have a FREE consultation, please feel free to call me or email me.

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• Short sales – recognizing seller motivation (agentgenius.com)

I’m always looking for ways to improve service for my clients, so tell me, what you would like to see in an agent?
What things do you like and dislike?  Help me to do my job better!

When I work with clients from out of town who have children one of their big concerns are the area schools.

 Overall, Placer County has a reputation for good schools and many of the people I have helped to relocate  have decided on Placer County because of that.

Many parents want their kids to be in the Eureka School District, it has the reputation of being one of the best in the area.

 But, this years statewide testing shows that Rocklin Union School District (RUSD) has the highest API scores in Placer County! RUSD is 50 points higher than any other school district with high schools in Placer County. Rocklin scored 869! So if you’re considering relocating to the South Placer area, make sure to look in Rocklin you won’t be disappointed!!

www.rocklin.k12.ca.us/

www.ci.rocklin.ca.us/

Out of town people ask, “What’s so great about your area?”

Are you going to be working in the downtown Sacramento area? Live in South Placer County, have a small commute and a great quality of life!

Do you like the outdoors, lakes, rivers, hiking, horseback riding, cycling, rafting, kayaking and motorcycle riding to name a few? That’s another reason to move to Placer County! Did you know that Auburn is named The Endurance Capital of the World? Oh, did I mention that from Roseville you can be snow skiing in about 1 hour.

Worried about your kids getting into a good school district? Placer County has some of the best schools in the state.

How about shopping? The Roseville Galleria has completed their expansion and now features over 125 different services. The Fountains opened end of 2008 and features a really nice “downtown feel” with many great shops and eating establishments. If you like Whole Foods, we have the Mother Ship of Whole Foods also located in The Fountains.

Property values have adjusted in the current market to make it affordable to obtain home ownership for first time home buyers and a great area for move up buyers as well.

If you’re considering relocating to this area you owe it to yourself to come for a couple days and enjoy all the great things that Placer County has to offer!

westfield.com/galleriaatroseville/

www.thefountainsatroseville.com

www.placer.ca.gov/

www.sugarbowl.com/home