Palm Springs CA real estate listings and homes for sale, home buying, home selling information – Kris Rain

My New Blog

Success, pass it on.....

October 7th, 2008 9:40 AM

There is no such thing as a 'self-made' man. We are made up of thousands of others. Everyone who has ever done a kind deed for us, or spoken one word of encouragement to us, has entered into the make-up of our character and of our thoughts, as well as our success.

George M. Adams, 1878-1962

American Author

Posted by Kris Rain on October 7th, 2008 9:40 AMPost a Comment (0)

Why FHA?

October 1st, 2008 2:38 PM

Federal Housing Administration (FHA) loans have been around for a long time, so why now all this attention to what had been considered a government sponsored program for first-time home buyers?

A recent Washington Post article outlined the situation as follows: "Demand for these once-neglected mortgages has surged because they do not require the hefty down payments or stellar credit scores that lenders have come to expect from borrowers. In addition, the amount of money people can borrow on these loans went up dramatically this year, and many homeowners have found them attractive for refinancing."

Top reasons to consider an FHA Loan from FLC now

You only need 3% down.
Borrowers may qualify with as little as 3% of their own funds into the loan for Purchase loans; or on a Refinance you can borrow up to 97% of your home's value. Your down payment may also come from a family member, employer or charitable organization as a gift. Other loan programs don't allow this practice.

Don't feel locked in to your current Adjustable Rate Mortgage (ARM).
You do not need to have an existing FHA loan to refinance into an FHA loan type. FHA gives homeowners with non-FHA adjustable rate mortgages (ARMs) the ability to refinance into an FHA-insured, fixed rate loan.

It is easier to qualify than you think.
You can qualify with less than perfect credit. And with the temporary increase in FHA loan limits, if you live in a high-cost area1, loan sizes can be as high as $729,750.

DIRECT LENDER

CALL

FRED VAN VEEN, PLC

760.494.9977 Office / 760.467.8316

1345 N Palm Canyon Drive

Palm Springs, CA 92262

fvanveen@dc.rr.com

DIRECT LENDER

CALL

FRED VAN VEEN, PLC

760.494.9977 Office / 760.467.8316

1345 N Palm Canyon Drive

Palm Springs, CA 92262

fvanveen@dc.rr.com

Posted by Kris Rain on October 1st, 2008 2:38 PMPost a Comment (0)

Life after your bank fails

September 29th, 2008 1:14 PM

For small businesses with six-figure sums socked away, a bank failure can be a devastating blow.

NEW YORK (CNNMoney.com) -- When recruiting consultant Fran Quittel heard on her car radio one Friday afternoon in July that her bank, IndyMac, had been seized by federal regulators, she was surprised but unworried. An IndyMac customer for five years, Quittel had both personal accounts and business accounts at the bank, but she was confident her accounts contained less than the $100,000 insured by the Federal Deposit Insurance Corp.

But as Quittel delved into her banking details that weekend, she got an unexpected shock. Her business savings account was temporarily sheltering a chunk of funds awaiting deposit into her 401(k), and her business checking account still contained the money for an uncashed payroll check. The combination pushed the total stored in her business accounts over $100,000 - and when federal regulators closed IndyMac, Quittel immediately lost access to a portion of her uninsured funds.

"I didn't realize how fragile the bank was," said Quittel, the owner of Frances Quittel Inc. in Emeryville, Calif. "If you're a small-business owner, you have cash moving in and out of your accounts all the time - you're putting in money to pay for taxes, to pay health insurance premiums, to pay for retirement account fundings. It just doesn't occur to you that you're playing Russian roulette."

Many small businesses run close to the bone, and don't have six-figure sums stockpiled at the bank. For those that do, the risk of a bank failure remains remote: Washington Mutual (WM, Fortune 500) was the 13th bank to fail this year, out of 8,500 banks in the U.S. The FDIC had 117 banks on its watch list at the end of last quarter, representing a small sliver of the industry.

If your bank does fail, though, it can take with it a sizable portion of your operating cash, if what you have stashed exceeds insured limits. When NetBank went under in September 2007, it held around $800,000 for Applied Cognetics, a four-year-old software development firm in Brooklyn, N.Y. The FDIC quickly repaid depositors for 50% of their uninsured balances, but Applied Cognetics was left for months short several hundred thousand dollars.

"We just had to tighten our belts and work harder," said Chris Coulthrust, founder and president of the 12-person company. "We were able to get back enough to pay all of our bills, and we're profitable, so we were able to write off a lot of the loss on our taxes."

Now with Bank of America (BAC, Fortune 500), Coulthrust is reluctant to open multiple accounts for his company at multiple banks. "If we get past $1 million in our account, I guess we would move it around and create another account, but to have your money in multiple accounts is a pain," he said.

That's exactly what the experts advise, though. Bruce Zicari, a CPA and the partner in charge of the small business advisory group of accounting firm Bonadio Group in Rochester, N.Y., said he's been fielding calls from clients this week asking how to safeguard their bank accounts.

"We've advised them to be sure to keep below the FDIC insurance limits in each account, and to open multiple accounts if they need to," Zicari said. "Unfortunately, it's not the most efficient way to do business, but this is uncharted territory we're in. In the past you kind of took bank accounts for granted, but now it's a real issue."

The best way for companies to guard their cash is to avoid keeping much of it on hand in the first place. Zicari encourages customers to pay for major purchases by borrowing against a line of credit, which they can they promptly pay off, a maneuver that keeps them from having large sums sitting at a bank. Corporate savings should be stashed in money market funds or in Treasury bills, he recommends.

Earlier this month, the Treasury Department said it would insure up to $50 billion in money-market fund investments at financial companies that pay a fee to participate in the program. The initiative, which lasts for a year, will guarantee that the funds' value does not fall below the standard $1 a share.

Nolan Newman, a partner in Seattle CPA and consulting firm Newman Dierst Hales, also backs T-bills and money market funds as good options for small businesses. Given the recent financial turmoil, Newman is encouraging his clients to respond by being proactive in their financial planning.

"Don't assume someone else is looking out for you; don't assume your business model won't be subject to stress," he said. "In the areas of collections, expense controls and discretionary expenditures, tighten up. If you are in negotiations to get a credit facility, move quickly."

In a poll of National Small Business Association members conducted this month, 68% of those surveyed said the FDIC's $100,000 insurance limit wouldn't be enough to fully protect their business accounts. The American Bankers Association, an industry trade association, recently published a list of tips for small business owners looking to protect their bank accounts. Among its recommendations: Use the FDIC's Estimator tool, available online at http://www.fdic.gov/edie/, to calculate whether or not your bank deposits exceed insured limits.

The ABA also recommends that small companies consider tapping CDARS, a five-year-old system designed to offer FDIC protection for amounts far greater than the standard $100,000 limit.

CDARS, which stands for Certificate of Deposit Account Registry Service, is a financial service created by the Promontory Interfinancial Network in Arlington, Va. CDARS works by farming out large deposits across multiple banks within its network. Funds are then invested incrementally in multiple CDs, with no single bank holding more than $100,000. If any individual bank fails - as several CDARS members have - the CDs it holds will be of a low enough value to be fully covered by the FDIC.

CDARS is free to depositors, and can insure deposits of up to $50 million. Member banks pay a one-time fee to join the network and thereafter pay transaction fees on the funds they pass through CDARS. Most of the network's 2,500 banks are small community banks - the average asset base of members is $250 million, according to Mark Jacobsen, president and COO of Promontory Interfinancial Network.

Businesses make up the bulk of CDARS customers, accounting for 37% of its volume. Individuals, public entities like local governments, and banks themselves are also major customers.

"What small businesses like about CDARS is that they can deal only with their local institution and still protect their deposits," Jacobsen said.

Posted by Kris Rain on September 29th, 2008 1:14 PMPost a Comment (0)

Could a Lease-Option be for you?

September 14th, 2008 12:37 PM

Lease-To-Buy May Be Good Option

by Phoebe Chongchua

Many people who are struggling to get mortgages are finding comfort in a growing trend: lease-options. This is a contract that allows renters to lease the property and, at the end of their lease, they have the option to buy the home.

Hopeful buyers with poor credit are finding the rent-to-own option creates an opportunity to repair their credit while positioning them for homeownership. It's a win-win situation. Sellers find that properties that once sat vacant now offer cash flow.

The concept, while not new, is gaining momentum. There are a number of reasons buyers are finding this option appealing and it's not just because of bad credit. Some buyers are not sure if they're ready to own a home and take on all the responsibilities and extra costs that go with homeownership; the lease-purchase contract gives the buyers a chance to give homeownership a test drive.

Individual sellers in the housing resale market are considering this method to help get their homes sold and so, too, are developers who have found they're loaded up on properties they can't sell.

"In Boston, as is true with so of much the country, the condominium market is a little bit soft right now," says Eric Gedstad, Corporate Communications Manager, MassHousing in Boston.

So, some developers are trying the rent-to-own program in hope of getting condos sold. "There is one development where the renters sign an agreement that says 'If they would like to purchase the unit that they are renting any time within the next year, they can do so for a fixed price and they would have first dibs on that," says Gedstad.

Understanding the lease-option is very important. There are various differences in the way this type of contract can be drafted, so it is critical to hire experts to help negotiate the process to make sure you understand the terms and are protected. Here is some basic information about leasing with the option to buy a property.

Typically, in return for the landlord/seller extending the offer to buy the property after a period of time (usually one to three years) at a predetermined price, the tenant/buyer has to pay an upfront option (fee). That fee is generally non-refundable. A portion of the monthly rent may be applied toward the down payment to purchase the home.

Advantages for the buyer/tenant:

Under this type of lease-option contract, for the period stated, you are the only one who has the option to buy the property.
Typically a portion of your rent goes toward building equity and, when you purchase the home, is applied toward the down payment.
You have a contract to buy the home when the lease is up.
Usually you can buy the home at any time during the contract.
You can see if homeownership is right for you by testing it out.
In an appreciating market, you may get a good deal if the home goes up in value and you have already locked in a specific sale price for the home that is less than how much it appreciates. However, the reverse is true too. You could end up paying more for the home later on if it depreciates and a set price was locked in for a higher amount than what the home is worth when your lease-option is up.
You have a chance to clean up your credit and build equity.

Advantages for the seller/landlord:

Immediate cash flow from the tenant and the opportunity to sell your property later on.
If the tenant/buyer doesn't buy your property, you keep the upfront fee (option money).
You may have a larger pool to market your home to because you are marketing to traditional buyers and also renters and investors.
You will likely get higher-quality tenants who take better care of the home since the tenants may want to buy it in the future.
Since you own the home, you retain tax-shelter benefits while you have tenants in the home.
You may get some peace of mind knowing that you have tenants in your home who are working toward buying the home.

Things to consider when utilizing a lease-option:

Do a home inspection and document necessary repairs. Take photos to document the condition of the home.
Make sure all payments are kept up such as mortgage, taxes, and insurance for the property.
Verify if there are any liens against the property.
Spell out the terms if the tenant/buyer does not exercise the option to buy the home at the end of the lease.
Specify everything in writing; option contracts must have all the specific information that a sales contract would have in order to be enforceable.
Prepare a draft of an undated and unsigned purchase agreement.

It's always a good idea, when purchasing real estate, to contact experts to assist you through the process to ensure that you understand the contract and ultimately complete a successful transaction.

Published: September 12, 2008

Posted by Kris Rain on September 14th, 2008 12:37 PMPost a Comment (0)

Mortgage Rates Drop

September 11th, 2008 3:05 PM

Daily Real Estate News | September 11, 2008Mortgage Rates Drop--At Least for Some

In the days since the government assumed control of Fannie Mae and Freddie Mac, the 30-year fixed mortgage rate has dropped to about 6 percent, says HSH Associates.

While many borrowers are rushing to lock in the new rates, experts point out that only those borrowing less than $729,750--the new conforming loan limit--will qualify for the lower rates.

Moreover, with lenders implementing rules slated to take effect at Fannie Mae in 2009 that mandate 15-percent down payments, more borrowers will face a cash hurdle to secure financing.

Source: Los Angeles Times, Scott Reckard (09/11/08)

Posted by Kris Rain on September 11th, 2008 3:05 PMPost a Comment (0)

Boom on the Horizon?

September 3rd, 2008 4:44 PM

Daily Real Estate News | September 3, 2008 Population Boom Will Drive Real Estate Industries

When the Census Bureau released population projections last month, more attention was paid to the country's changing racial composition than to the massive scope of the increase. What's clear is that the latest numbers will inevitably give the real estate business a boost.

The Census Bureau is projecting an increase of 135 million people in the U.S, a 44 percent rise, by 2050. That’s equivalent to the entire populations of Mexico and Canada moving to the United States.

The bureau estimates that this population boom, largely fueled by immigration, will require 52 million new housing units, along with more places for people to shop and work.

Source: The Washington Post, Steven A Camarota (08/31/2008)

Posted by Kris Rain on September 3rd, 2008 4:44 PMPost a Comment (0)

Prices Stabilizing

August 26th, 2008 1:49 PM

Real Estate Outlook: Prices Stabilizing

by Kenneth R. Harney

The economy continues to send mixed messages -- some encouraging for real estate, some not -- but this week the positive are edging out the negatives.

Take housing prices for example. The research company with the largest database of ongoing real estate transactions - First American CoreLogic, which tracks property values in thousands of Zip codes and neighborhoods - reports that nominal price drops have "stabilized" in 883 core-based statistical areas, showing no declines in the past two months.

Why's that important? Because flattening out is what we need before we can see a cyclical turnaround -- in other words, where even in the hardest hit local markets in California, Florida, Arizona and Nevada, prices have hit bottom.

They're not likely to drop much further, and in some parts of California are now at such bargain levels that large investors are prospecting for entire packages of houses -- ten or more in some cases -- to buy in bulk and rent out.

Gary Crabtree, an appraiser in Bakersfield, California, told Realty Times that he knows of one investor who has a standing order for 20 houses that fit specific price and locational characteristics that he wants to purchase.

The National Association of Realtors sees similar bottoming out -- even the first signs of turnaround -- in a number of key markets in the U.S. In its latest quarterly report, home sales were up year-to-year in 26 percent of all states and 35 percent of metropolitan statistical areas.

Biggest price jumps were in Yakima, Washington, where the median was up 8.9 percent, Binghampton, New York, up 8.7 percent, and Amarillo, Texas, up by 7.2 percent.

On the other hand, the Realtors also reported the national median sales price was down by 7.6 percent from the second quarter of 2007, and now stands at $206,500.

In other key economic developments: New housing starts fell by three percent last month - which is only logical given builders' still bulging unsold inventories.

And mortgage rates took a dip this week to an average 6.47 percent for 30 year fixed. Fifteen year rates slipped below 6 percent to 5.99 percent. New loan applications for FHA mortgages to purchase homes rose slightly, according to the Mortgage Bankers Association of America -- even while applications for conventional home purchase mortgages from Fannie Mae and Freddie Mac dropped for the week.

Published: August 26, 2008

Posted by Kris Rain on August 26th, 2008 1:49 PMPost a Comment (0)

First Time Homebuyers...its your market!

August 12th, 2008 6:56 PM

RISMEDIA, August 12, 2008-Buying smart in today’s market got a little easier recently following the signing of the Housing and Economic Recovery Act of 2008 by President Bush. There are significant benefits aimed at helping buyers, such as a repayable first-time home-buyer tax credit. First-time buyers are important to the health of the housing economy because their home purchases help to stimulate sales up the price points. Through the home-buyer tax credit, buyers who are purchasing for the first time or who haven’t owned a property in the last three years can now qualify for a tax credit equal to 10% of their home purchase price, up to $7,500.

Further qualification requires that the home purchase be made between April 9, 2008 and July 1, 2009. The credit phases out if the buyer’s income exceeds $75,000 for an individual or $150,000 for a couple filing jointly and it must be paid back over a 15 year period in equal installments. The credit can be claimed on the buyer’s 2008 tax return even if the purchase is made in 2009 (it’s important to note that this is a tax credit and not a tax deduction).

Another component of the housing bill includes much needed FHA modernization which aims to adjust loan limits so that they are more in sync with current home values. The bill allows Fannie Mae and Freddie Mac to serve more home-buyers by raising loan limits in high cost areas above the standard conforming limit to 115 percent of the median house prices and up to 150 percent of the conforming loan limit.

The Housing and Economic Recovery Act is expected to play a critical role in strengthening the housing market and overall economy. The last time Congress passed legislation like this in the 1970s, the housing market saw a significant increase in activity. Using history as a guide, Lawrence Yun, chief economist of the National Association of Realtors believes the Housing Act could represent a boost of 10% in the number of homes sold.

The passing of the Housing and Economic Recovery Act marks the beginning phase of the next ten-year housing cycle in which prices in the more affordable markets will only continue to appreciate (affordable refers to homes priced at or below a market’s median housing price). Contributing to rising prices is population growth, the impact of Generation Y, inflation, and growth management. Homes in the more affordable price ranges in many markets have already adjusted and the new housing legislation will continue to boost this positive momentum. Increased sales in the more affordable markets will set a new foundation for housing, helping to stabilize the overall real estate economy.

Posted by Kris Rain on August 12th, 2008 6:56 PMPost a Comment (0)

Declaration of Homestead

July 31st, 2008 7:00 PM

The following is for information purposes only and is not intended as legal advice.

Declared Homesteads Mail Solicitations.

Taxpayers have reported receiving sales pitches to purchase a homestead form that may be obtained for free or only a nominal fee. These homeowners are being approached by law firms and homestead companies to pay for services to prepare Homestead Declaration forms.

WHAT CONSUMERS NEED TO KNOW ABOUT HOMESTEAD DECLARATIONS

Questions/Answers

Q: If I receive an application for a homestead declaration from a private company or legal firm, must I pay for their processing fee?

A. No. You can do this yourself by purchasing a Homestead Declaration form from a stationery or office supply store for about $2. This form can also be downloaded at no charge from the Assessor/Recorder/Clerk’s web site

Q: What is a Declared Homestead?

A. A Declared Homestead is a dwelling described in a homestead declaration and must be real property. A dwelling in which an owner or spouse of an owner reside may be selected as a declared homestead. The recording of a Declared Homestead gives California homeowners limited protection of their real property home equity from judgments, liens and claims by creditors.

Q: Why do people file a Homestead Declaration?

A. The most common reason homeowners record a Homestead Declaration is to protect the equity in their homes when they are involved in a law suit or anticipate the filing of a court action against them.

Q: Are there any disadvantages to recording a Declaration of Homestead?

A. Some lenders require the removal of a Declared Homestead before a home loan can be approved.

Q: How do I qualify for the benefits of a Declared Homestead?

A. In order to qualify, the home must be your principal place of residence, and you must record a Homestead Declaration in the County Recorder’s Office.

Q: Can I record a Homestead Declaration on my rental property or vacation home?

A. No. You are only eligible for the benefits of a Declared Homestead on your principal place of residence, and can only qualify for one exemption at a time.

Q: How much of my equity does the Declared Homestead protect?

A. Currently, amount protected by a Declared Homestead is $50,000 for single homeowners and $75,000 for families. The equity exemption is $125,000 for seniors 65 years of age or older as well as certain disabled persons. The $125,000 home equity exemption is also available to homeowners 55 years of age or older earning less than $15,000 a year if single or $20,000 if married.

Q: How does a Homestead Declaration work?

A. If the market value of your home is $250,000 and you have a first mortgage of $160,000 and a second mortgage of $40,000, you have equity of $50,000 in your home. The homestead exemption protects this equity against creditors.

Q: What do I do with a Homestead Declaration form after I obtain one?

A. The form must be completed and the owner(s) signature notarized. The document must then be recorded in the County Recorder’s Office.

Q: How much does it cost to record a Homestead Declaration?

A. The cost for a notarized signature is $10, and the fee for recording a one-page Homestead Declaration form is $7.

Q: Are there any debts not protected by a Declared Homestead?

A. Yes, debts not protected by a Declared Homestead include foreclosures on mortgages, mechanics liens and back taxes. Judgment liens awarded to creditors before you record your Declaration of Homestead are not covered.

Q: Can I remove the Declared Homestead if I want to?

A. Yes. Some lenders require the removal of a Declared Homestead before a new loan is approved. You can remove it at any time by recording a form called Abandonment of Homestead. If you record a Declared Homestead on another property, the Declared Homestead on the first property is automatically cancelled. When you sell your home, it is also automatically canceled.

Q: Will my property taxes be increased or decreased by recording a Homestead Declaration?

A. Neither. The recording of a Homestead Declaration will not affect your property taxes.

Q: Is the Declared Homestead the same as the Homeowner’s Exemption?

A. No. The two programs are totally different. Recording a Homestead Declaration may protect some of the equity in your home, while the Homeowner’s Exemption allows a property tax reduction for owners who occupy their homes.

Q: Where can I get more information about the benefits of a Declared Homestead?

A. For more information about Declared Homestead, please refer to California Code of Civil Procedure Sections 704.910 through 704.995 or consult your legal advisor.

Q: What is the Homestead Exemption?

A. As opposed to a Declared Homestead, discussed in detail above, the Homestead Exemption is separate a separate statutory right given to homeowners. This right automatically protects equity in dwellings from involuntary sales. The homeowner’s equity is protected as follows: Currently, the amount protected is $50,000 for single homeowners and $75,000 for families. The equity exemption is $125,000 for seniors 65 years of age or older, as well as certain disabled persons. The $125,000 home equity exemption I also available to homeowners 55 years of age or older earning less than $15,000 a year if single or $20,000 if married.

Posted by Kris Rain on July 31st, 2008 7:00 PMPost a Comment (0)

Live Healthy!

July 22nd, 2008 1:57 PM

"Eat more fruits
and vegetables."

It’s the one recommendation in almost every diet plan, every guide to nutrition, every fitness book. Even organizations such as the U.S. Department of Agriculture, the World Health Organization, the American Heart Association, the American Cancer Society, and the National Center for Chronic Disease Prevention and Health Promotion agree. But as much as it’s preached, most people still don’t eat enough fruits and vegetables every day.

Juice Plus+ helps fill that gap.

www.krisrainjuiceplus.com

Posted by Kris Rain on July 22nd, 2008 1:57 PMPost a Comment (0)