Zaida Patel, Realtor —– Blog Website

The Wall Street Journal

What home sellers don’t tell buyers
As buyers ease back into the battered real-estate market, they’re often hitting a stumbling block:  Fibbing by home sellers.  Buyers should do their own due diligence and not rely on agents and sellers.

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Daily Breeze

State and national foreclosure filings continue to rise
Even as the economy and real estate market show signs of stabilizing, foreclosure filings continued to grow in California and nationwide last year.

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According to the California Association of Realtors, Fannie Mae and Freddie Mac are offering financing incentives for buyers of foreclosed homes owned by Fannie and Freddie.  Home buyers have until Oct. 30 to apply for Freddie Mac’s SmartBuy program, which started in July, and offers up to 3.5 percent of a home’s sale price to help cover closing costs.

To qualify, the home must be a principal residence and must be selected from Freddie Mac’s HomeSteps Web site (www.homesteps.com/homeshoppers.htm) for its foreclosed properties. Loans must close by year’s end.  The HomeSteps properties also include two-year warranties on major appliances and electrical, plumbing, and air-conditioning and heating systems.

Fannie Mae’s HomePath program (www.homepath.com) is an ongoing program and offers more incentives than Freddie Mac’s.  Through participating lenders, Fannie will offer mortgages to buyers who make a down payment of 3 percent.  The buyers do not have to secure private mortgage insurance, a common practice with nearly all lenders.  Home buyers also can negotiate for Fannie Mae to offer closing-cost assistance.  Unlike Freddie Mac’s program, Fannie’s assistance level is not capped.  Under the HomePath program, the average participating homeowner has received payments equivalent to 3.75 percent of the loan’s value.

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http://www.nytimes.com/2009/10/11/realestate/11mort.html?_r=1&ref=realestate

On February 1, 2009, I  listed  the model home (previously sales office),  and leased by John Laing Developer.    Every week-end, 30-40 homebuyers, came asking about the status of the John Laing builder.  Because the home I listed is owned by a private owner, I did not have any information about the builder’s status.

Therefore,  I called the John Laing Headquarters  in February and I was told that they are not going to continue building or complete the Villa d’este community in Fremont.   It’s up to their lender to decide on the future of this community in the Ardenwood area.

However, since this is the only floorplan and home available, there is no competition.  Unfortunately, the asking price is not attractive to home buyers and timing is wrong,  due to the current economic trend.  The owner bought the model home for $1,400,000.   It is currently listed for $1,275,000 which is still a loss for the seller.    The property does have over $200,000 of upgrades with high end appliances.

Recent article about the John Laing company, please click here.

Article on Timeline of John Laing’s pathway to Bankruptcy, please click here.

Los Angeles Times

Independent home inspections are crucial for would-be buyers
A crucial part of the home-buying process is the home inspection, but many home buyers do not pay enough attention to this important step. According to the president of the American Society of Home Inspectors, many of the items that independent home inspectors find during the inspection are results of neglect. Most homeowners do not provide regular maintenance, such as changing filters in the furnaces and air conditioners, fixing leaky faucets and repairing doors and windows.

MAKING SENSE OF THE STORY FOR CONSUMERS

· During the home inspection, home buyers should turn on the water faucets to gauge the water pressure. If the water drips or there are noises, it could mean there is a problem with older galvanized piping or inadequate piping. Sections of piping may need to be replaced, or a completely new plumbing system may be needed.

· While vertical cracks in the foundation are normal and often are caused by the house settling, horizontal cracks are not, and generally result from hydrostatic pressure against the home’s foundation. This can be corrected by excavation and drainage and repairs to the wall itself. If horizontal cracks are evident, home buyers should consult with several structural engineers to determine corrective measures.

· Stains on walls and ceilings should be further evaluated to determine the cause and extent of any possible hidden damage. Home inspectors also should search for the cause and test the stain using a moisture meter to determine whether or not it is active.

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