Mardi Boettcher's Blog

If you are planning to use an FHA loan, here is some important information you need to know.A property must be FHA eligible.  That means it cannot have any “health and safety issues.”  Your real estate agent should be able to advise you as to which properties will not qualify.  This will save you a lot of time and disappointment.  If your agent is not sure, s/he should consult with your lender.  FHA does not require a pest report or section 1 clearance unless the appraiser makes negative comments about the property that would cause the lender to want to know more information.  So, if your agent knows, going into the loan process, that there is going to be a potential issue, then s/he needs to make sure that it’s possible to get a section 1 clearance or to get the repairs done prior to the appraisal process.

People have been coming to Mendocino County for years for the breathtaking views, award-winning wines, whale-watching, and wonderful food. During the holidays a kind of magical feeling descends over the County’s towns and villages. Mendocino County’s New England charm works overtime at this time of year, with Victorians twinkling with lights, a roaring fire in every fireplace, and a warm, small-town feeling of holiday cheer enveloping everyone.

Escape to Mendocino County where warm fires, friendly people and festive events await you. Plan your trip today at www.goMendo.com.

Come Celebrate!
Events this holiday season include:

A Taste of Redwood Valley – Holiday Wine Sale and Artisan Faire November 21st – 22nd A Taste of Redwood Valley invites old friends and new to join them for the 7th annual Holiday Wine Sale and Juried Artisan Faire. Live Music, one-of-a-kind art, friends, food, wine and Merriment

Festival of Trees – Gualala, CA November 27th- 28th Enjoy a Gualala Christmastime as it was in the 1850’s when it was a thriving mill town. Two “villages” will be decked out for the holidays and vendors dressed in period costume will be offering handmade crafts of the kind available during the 1850’s – quilting, weaving, knitting, felting, woodcraft, folk art, pottery, soap making, jewelry of metal and glass – accompanied with demonstrations of their skills.

Holiday Lights Parade – Fort Bragg, CA Saturday, December 5th Lighted parade with Christmas tree lighting, carolers, and Santa in downtown Fort Bragg. Free to all.

Ukiah’s Annual Small Town Christmas – Ukiah, CA Saturday, December 5th Celebrate this wonderful time of year with your family and friends at Small Town Christmas in Downtown Ukiah. Have a photo taken with Santa, enjoy local performers, and stop by our local shops. There will be live entertainment in the Alex R. Thomas Plaza followed by the Tree Lighting Ceremony.

Skunk Train Christmas Train – Willits, CA Willits Depot: Dec. 5, 6, 12- 23

Fort Bragg: Dec. 5, 6, 12, 13, 19, 20 A yuletide favorite of children and adults alike! Join Santa and his elves on a 90-minute magical ride through the light-strung trees of the redwood forest. Enjoy hot chocolate & homemade cookies while listening to strolling musicians and engaging storytellers. Pajamas welcome! Fares: $31 for adults and $24 for children (ages 3 to 11). For more information and reservations, call 1-866-45-SKUNK or visit www.skunktrain.com.

Annual Mendocino Coast Candlelight Inn Tour December 9th – 11th
The inns of Mendocino County’s ocean-side towns celebrate the holiday season with gorgeous and extravagant old-fashioned decorations and open-house hospitality. Benefits Mendocino Coast Children through Big Brothers/Big Sisters and Mendocino Unified School Enrichment (MUSE). One ticket includes all the days and light refreshments at the inns.

Annual Christmas Eve Celebration “The Festival of Nine Lessons” – Gualala, CA
Wednesday, December 24th Mendocino County’s version of a tradition that has been offered each year since 1919 at King’s College Chapel, Cambridge, England, will feature the Anchor Bay Children’s Choir and other musicians. At the Gualala Arts Center in Gualala.

Save the Date:

Mendocino County Crab & Wine Days January 22nd – January 31st, 2010 Every January, Mendocino County in Northern California celebrates locally harvested Dungeness crab and locally grown and produced wines with a festival that delights foodies and oenophiles alike!

From gourmet, crab-themed dinners in four-star restaurants, to family-style cioppino feeds, a countywide Passport wine tasting, to the ever popular Crab-cake Cook Off featuring local Mendocino chefs, this festival has something for everyone!

Visitors will enjoy a multitude of dinners, events and lodging specials over the course of the ten days — so head to Mendocino County come January and enjoy good food, fine wines, and family-friendly fun!
Click here for a complete listing of festival events!

Visit www.goMendo.com

I was very surprised to learn that industry estimates find that half of all homeowners who lose their homes to foreclosure have no contact with their loan servicers.  If you are at risk of default or already behind on your mortgage payments, I recommend that you  contact your servicer at the first sign of trouble.  Ask to speak with someone in the home retention department.   

You may be able to work out a loan modification, short-sale, or repayment plan.  Servicers will ask you to explain the reasons why you can no longer make the mortgage payments.  You should be honest and realistic.  The servicer also will need to verify your current income, unemployment benefits (if any), household expenses, tax returns, property taxes, hazard and flood insurance premiums, and condo or HOA dues.

 Whether the loan servicer requests it or not, you should include a letter authorizing the servicer to speak with your REALTOR®, another family member, or perhaps your attorney, as this can help speed up the process.

If you have any questions about this process, please don’t hesitate to contact me.  I’m here to help.

Fannie Mae has announced a new Deed for Lease™ program.  The new program allows borrowers to voluntarily transfer their property back to the lender and then lease back the house at market rate.  The lease period is for up to 12 months, with month-to-month contract extensions after that period.  The program is designed for borrowers who do not qualify for or have not been able to obtain other loan-workout solutions, such as loan modifications.  

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance also may be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31 percent of their gross income.

Homeowners thinking of participating in the Deed for Lease™ program should visit Fannie Mae’s loan look-up Web site at http://loanlookup.fanniemae.com/loanlookup/ to see whether their loan is owned or guaranteed by Fannie.  Mortgages backed by the Federal Housing Administration and other government agencies are not eligible for the Deed for Lease ™ program.

 To read the full story, please click here.

In this market, where homeowners have to compete with the “fire sale” prices of bank owned homes, it more important than ever for homeowners to be realistic about their home’s values.  It often is difficult for homeowners to objectively value their homes, which often reflects their sense of personal style.  However, by consulting with a REALTOR®, using online resources, investigating neighborhood trends, and soliciting the opinion of friends, homeowners can arrive at a reasonably accurate appraisal.  If they cannot accept the reality of the situation, I recommend that they wait for a more favorable selling climate.  On the positive side, they will often more than make up the loss from the savings on their new purchase.  It is important to have their agent help them “crunch the numbers” before making the final decision.

If they are having financial difficulties, it is critically important for them to consult with their real estate consultant to get accurate information on all their options and the possible consequences.

This event is a good example of the unique character of Mendocino County and it’s residents: 

Global Day of Climate Action celebrated in Willits By JAY GORDON
Updated: 10/27/2009 02:12:10 PM PDT
Special for the Ukiah Daily Journal

The city of Willits is a walkable community. It’s easy for residents and visitors to explore the town on their own or as part of an organized group.

Painted footprints at intersections guide the curious around downtown and the nearby areas. This includes locally owned shops, charming cottages, public parks, museums, art galleries and a state of the art skatepark for kids.

Most walks begin at J D Redhouse mercantile, not simply because it is in the center of town but also because it’s a place to fortify yourself with pastries and specialty coffees before your walk — and snacks and ice cream afterward.

Head north toward Commercial Street, where painted footprints on the sidewalk will direct you to turn left and begin whatever part of the 5-mile excursion suits your interests and energy level. There are organized walks about four times a year.  This is a great way to meet local people and other visitors who share your enthusiasm for walking.

Normally, a hundred or so walkers participate. However, attendance for the Sunday, Oct. 24 event was sizable since it was in conjunction with the Global Day of Climate Action. Groups around the world planned activities for this day to focus on ways to protect the planet by reducing the amount of carbon in the atmosphere.

At the time walk organizer Jed Diamond said, “The goal is to have 350 walkers to represent the 350 parts per million that scientists, climate experts, and many national governments say is the safe upper limit for carbon dioxide in the atmosphere. We are now almost at 390. Our walk will be one of thousands of events going on throughout the world (including one in Laytonville) on Oct. 24 co-sponsored by the group 350.org.”  The final tally of walkers in Willits of Oct. 24 was 377.  Impressive for a town of 5,000 people. 
There were  free cotton T-shirts for the first 350 people to sign in and take the walk. The T-shirts have a net zero carbon footprint and are made from 69 percent pre-consumer recycled cotton.

The local organization spearheading the walks is WHAT (Willits Healthy Action Team).  Cofounder Jed Diamond is a longtime resident, perhaps best known for his seminal best-selling books on men’s issues, including Male Menopause and The Irritable Male Syndrome.  Contact Jed for more information about future walks.  Phone 459-5505 or e-mail jed@MenAlive.com.

Approximately half of all mortgage loans are sold from one lender to another, often because the original lender is not equipped to collect payments, manage escrow accounts, pay taxes and insurance, respond to questions, and prepare payoff statements when the home is sold or refinanced.  Some borrowers may receive letters in the mail alerting them of the sale of their loan a few days after closing, while others may not receive a notice for years.

In the mortgage-industry, this is called a “transfer of servicing,” and is a common practice.  Borrowers should not be concerned about these changes, as the majority of lenders transfer their servicing rights to loans.  Generally, the selling of a mortgage loan from one lender to another is a smooth transition and does not impact the borrower.  Every so often though, there is a misstep by either the loan buyer or the loan seller.

Under the National Affordable Housing Act, when a mortgage loan is sold, the borrower is required to receive a “goodbye” letter from their current servicers at least 15 days before their next payment is due.  The letter must state the name, address, and telephone number of the new servicer; the date the old company will stop collecting payments; and the date the new company will start accepting them.  Under the Helping Families Save Their Homes Act, signed by President Obama on May 20, the new owner of the loan—which may or may not be the servicer—also must notify the borrower of the transfer within 30 days, known as the “hello” letter.

The “hello” letter should outline the same information as the “goodbye” letter sent from the former loan servicing company.  Borrowers should be cautious if they receive a “hello” letter without receiving a “goodbye” letter, as they may be the intended victim of a scam by someone who is hoping to unlawfully receive the monthly mortgage payments.  Concerned borrowers should contact their current loan servicer to verify if their loan has been transferred.  If it hasn’t, authorities should be notified immediately.

In most cases, a mortgage payment sent to the old servicer automatically will be forwarded to the new servicer for a brief amount of time, typically 60 days.  However, if payments are not sent to the correct servicer, they could become lost, and the homeowner may incur late fees.

Many of you have had questions about the new Tax Credit Laws, so I thought it would be helpful to post these links to two excellent Q & A documents for you from http://www.federalhousingtaxcredit.com/

Be sure you check with your tax professional before making any final decisions.

Enjoy!

Click here for a list of frequently asked questions.

Click here for information specifically about the eligibility requirements for existing homeowners.

For mortgages, 620 is the new magic number
Near historic low mortgage rates, favorable home prices, and the federal tax credit for first-time home buyers have contributed to home purchases in the past year.  However, the onset of the credit crisis, new regulations for home appraisals, and more stringent guidelines for purchases and refinances have resulted in confusion for some potential home buyers.

 While using a mortgage broker to find the best loan may work for some buyers, it may not always be the best route.  In the past, mortgage brokers could “shop” a loan to multiple lenders to help find the best deal.  However, new practices and procedures under the Home Valuation Code of Conduct (HVCC) have hampered mortgage brokers’ abilities, namely that lenders may no longer accept home appraisals commissioned by brokers.  As a result, consumers may have to pay for new appraisals with each lender, which costs time and money.  However, consumers who are very busy or need guidance may find that working with a mortgage broker is the easiest solution.

 Qualifying for a mortgage under current lender standards is more difficult nowadays than in years past.  Beginning Nov. 1 or Dec. 12, depending on the type of loan, Fannie Mae is tightening its lending standards to the 620 credit score benchmark—including loans backed by the Federal Housing Administration and Veterans Affairs.  Borrowers with credit scores of less than 620 will find it very difficult to qualify for a mortgage.   However, to qualify for the best rates, consumers generally need credit scores of 720 and must have verifiable, steady income.

To save yourself time and money, be sure you work with an experienced mortgage broker who knows the latest changes in regulations and underwriting practices.  A top-notch broker is able to anticipate potential problems and come up with solutions in advance so you can be confident that you will be able to finalize the sale.  This affects seller’s also.  Your agent should be sure that the buyer is working with a reliable broker.  

If you would like a referral to some excellent local brokers, just let me know.