$50k for a down payment

How does $50,000 given to you for a down payment on a house sound?

It all sounds too good to be true, doesn’t it? Well, at least it did until now.

Clackamas County has made this possible through their Neighborhood Rehabilitation Program. Like any loan or transaction in purchasing a home there are always stipulations and qualifications. But, if you ask me, the opportunity could be well worth your time to apply. These programs are all in effort to re-stabilize the local economy and lower the number of foreclosures and bank owned homes on the market.

As far as we can tell there are 3 different loan programs. All except 1 apply to 1st time buyers. Funds are on a first-come first serve basis. One common restriction is the applicant can not have a foreclosure within the past 5 years.

Program 1: CHAP Clackamas Homebuyer Assistance Program. CHAP can allow up to $14,000 in helping qualified 1st time homebuyers to pay for down payment and “reasonable” closing costs. This loan is held at 0% interest and on a deferred payment schedule. Other qualifications and guidelines apply.

Program 2: NCRA North Clackamas Revitalization Area Homebuyers Assistance Program. Allows up to $15k on down payment and again, “reasonable” closing costs. Zero % interest and also on deferred payment plans. This loan differs from the CHAP in regard to it’s specifications on a “qualified borrower”. Some qualifications include person of 62 or older; a Police Officer or current or former member of the military. Other qualifications and guidelines apply. (Program 1 and program 2 can be combined and used together!!)

Program 3: NSP Neighborhood Stabilization Program. Up to $50,000 for down payments, closing costs, pre-paid, primary 1st mortgage reduction and REPAIRS after closing. This program applies to Clackamas County HUD-designated high need census block group-see maps on website for clarification.

Each program, while carrying their own stipulations, requires the applicant to attend a Homebuyer class and get pre-approved by a first mortgage lender.

I can appreciate that all of these programs come with an educational requirement. Like they say, knowledge is power! How can we expect to change the mistakes we made in the past without learning how to prevent them in the future? Of course, there have been some choices made out of our control, which inevitably aided in our current economic state. But, if we can all learn the processes and responsibilities of owning a home, maybe and just maybe, a few more foreclosures can be prevented in the future.

Websites for the above programs:
www.clackamas.us/cd/nwp.jsp
www.clackamas.us.cd/downpayment.htm
www.clackamas.us/transportation/renewal/ncraloangrant.htm

We have extensive experience in the above programs and would love to help you become a homeowner. Not only will you be purchasing a bank owned home or a pre foreclosure which are usually 10K to 20K under market value, you will also have up to 50K given to you for your down payment, closings costs, and improvements to the home. This is an absolutely incredible program and an opportunity to take a huge step forward in your financial goals. Contact us today for more detailed information. Each of the above programs requires a real estate agent to attend classes and be trained in handling these programs correctly. We will guide you through the entire process. You can reach Jeremy at 503-209-6183 or catchtrump@yahoo.com. Best wishes and God Bless Clackamas County.

Credit Repair / Restoration

Credit Repair/Restoration

DID YOU KNOW….that you can have perfect credit…and that you can have all your negative credit completely deleted off your credit report. This is a very interesting concept and is very skeptical to so many, but we have seen it happen first hand as well for many of our clients. The best part is that it is completely LEGAL!!!

About a year ago we were introduced to a company that does this and has a history of helping over 170,000 clients, deleting over 5 million items…so how do they do it, and how can you do this. Well, it is easier than you think, but does cost money…how much…keep reading and find out not only how much this costs, but also how you will save thousands by doing this.

Fortunately, or unfortunately pending on who you are, the company that we refer all our clients to have an over 40 point system that is copy written…air tight, even lawyers have tried and failed to penetrate this system…but why when it cost nothing compared to the savings and education you will receive. Not only will you learn more about credit, have your credit completely cleaned up, but they also will teach you and help you understand how to get 800 credit scores over time. Talk about TOO GOOD TO BE TRUE…But it IS!!!

This is how the program works in a nutshell…you pay for it and they send you an educational e-book that will help you learn about how credit works, should you read it. You send in your credit reports and then you receive letters from the company to send into the credit bureaus. You need to sign and lick a stamp and include a photocopy of your Picture ID and SS Card. That’s just the rules, and then when you start getting things back from the bureaus, you send them back to the credit restoration company and continue the process. After a few attempts your credit should be completely clean of any negative items. Some people have 1 or two items, others have over 90 negative items, so time frames will vary…but it works and has worked for over 170,000 people over the past 10 years! I’ve heard people tell me that they can do this, or that other companies have said they could and then didn’t, but this company again, for the third time has helped over 170,000 people in the past 10 years. And I have seen it happen for me and all my clients who have needed it! Once all the credit is cleaned up, they will then help you learn how to get your scores over 730!!!

Yep, even I have used this system and I have seen all my negative credit just deleted and my credit scores, which is a reflection of what is on your credit report, have gone up into the 700’s. This is months ago and even still the deletions have not come back…it is permanent and should anything come up, all you have to do is contact me or the company and they will get it deleted again. This may happen if an account is sold to another collection company, but like I said, this company is so dedicated at having a good reputation that they will get it taken off.

So how does this help you save 1000’s or make 1000’s. It’s both really…with good credit you can save 1000’s on interest a lone. But for some it could be the ability to buy a home that appreciates, or get that job that may require a credit check. In any case, it is worth taking advantage of the second chance opportunity.

OK, so HOW MUCH right!!! Here is a hint…it is much less than $1000 for any two people in a household, that means husband and wife, boyfriend and girlfriend, mom and son, brother and sister, just so long as they are living in the same household. Want to find out just how much less…ok; no more games…for $599, you and another person in your household can do this! It is $599 for one or two people and this service is for a year…so after your credit is cleaned, should you miss a payment in the 11th month you can get the late payment deleted…that’s right, this company can even delete late payments.

Now there are always going to be some people that say that are skeptical or think that this is morally bad. That is fine, and they can keep their negative credit. I personally think about my family first and how this can benefit them and me over the years, as well as how this can help my friends who are working very hard to come back from being hit so hard with the economy. The fact is that this is completely legal and uses the Fair Credit Reporting Act…if anything, Experian, Equifax, and Trans Union are breaking the law everyday and we need to take back our rights.

So if you have any negative items including BK, Collections, Foreclosure or Short Sale, Judgments, Liens, Repossessions, etc, or have been a victim of identity theft, or had a divorce and the debt of the other is causing your score to be less than optimal, then give me a call and I will help you get back your life and start off with a fresh new start. You owe it to yourself to take this opportunity.

Lastly, if you are a Realtor, or a Mortgage Broker or anyone who feels they would benefit from this service, please contact me and we can get you in touch with how this program works and how you can start helping your clients where they really need it! As a Realtor I’ve closed over 10 more transactions last year from helping clients with this program who couldn’t buy a home before but are now homeowners. It works, and is worth so much more than the cost. Call me at 503-891-4860 or e-mail me at dave@daveandjeremy.com. You can also learn more at www.mycreditscorerestored.com. Best to you and yours!

To Short Sale or Not to Short Sale?

TO SHORT SALE OR NOT TO

SHORT SALE?

TO BUY OR NOT TO BUY A

SHORT SALE?

Those are the questions!

Many people are curious about a short sale and the process involved in either selling a home via a short sale or buying a short sale home. There are advantages and disadvantages to both.

What is a short sale? A short sale is a process that a seller uses to sell their home when the market value of the home is considerably less then the loan balance the seller owes on the property. It is a process where by the lender agrees to accept less then what is owed on the property and allow the home to be sold to a new buyer. This is very common today in the Portland metro market area and most other cities across the country right now.

Unfortunately, the process can be very frustrating and annoying for both buyers and sellers due to the fact most lenders take their time in evaluating and negotiating a short sale. It is a long and daunting process. However, if you have a skilled real estate agent helping you then the process can be a much more comfortable journey.

Here are some common questions and answers concerning short sales.

How long does a short sale usually take?

This depends greatly on who is the lender, their specific process and if there is only one lender or multiple lenders associated with the home. Typical short sales take anywhere from 90 days to as much as 6 months or even a year in some extreme cases. This can be extremely frustrating for a buyer to try and wait for a decision from the lender or lenders.

Why is the property still listed as active on the market if a buyer and seller have an accepted offer on the property and are waiting for the bank to approve the short sale?

90% of the time the first buyer who puts in an offer on a short sale usually finds another property that is not a short sale and will back out of the transaction prior to the bank making a decision. This is very common because most buyers want to purchase a home within 30 days or so and have a hard time waiting for the bank. A good listing agent will continue to market the property and get 2 or 3 back up offers on the property to ensure there is a ready and able buyer to close on the property once the bank makes their decision. It is very common for the 2nd offer or 3rd offer to have the choice in purchasing the home. A good buyer’s agent will help most buyers that have an accepted offer on a short sale continue to look at other homes that are not short sales in case they find another property they like better and can close sooner.

What price can a buyer expect to pay for a short sale property?

Overall, you can expect to get a small discount below market value of other properties that are not short sales. During the short sale process banks will send out either an experienced real estate agent or an appraiser to get a BPO (Broker’s Opinion of Value) or an appraisal on the property. This value is close to what the realistic market value of the property is as of the date of the report. The bank will then use that information to decide what price they are willing to accept on a short sale. Typically, most banks will allow a small discount below the market value of the property because they are saving costs if they receive a payoff on the home now rather then wait for the foreclosure process to gain control of the home. Once the bank makes a decision they will either accept the offer or make a counter offer to the buyer’s offer. If the buyer does not accept the bank’s counter offer then the listing agent will go to the back up offers and see if they want to proceed and if not then he or she will put the property back on the market knowing exactly what price the bank will accept. It is usually a very short time after that when a new offer will come in at exactly what the bank wants for the home. Short sales with an approved price from the bank go very quickly because they are usually a little under the real market value of the property and no more decision time is needed from the bank.

Do most lenders allow a short sale or is a foreclosure more common?

Most lenders will accept a short sale. A very good listing agent can get the foreclosure date postponed during the short sale negotiation process. As long as the offer is realistic in terms of what the actual market value of the property is then most short sales end up selling to one buyer or another.

Should I consider buying a short sale or selling my home on a short sale?

This depends on your specific circumstances and your real estate goals. An experienced agent in short sales can help you discuss all of the advantages and disadvantages and the options available to you. For more information please visit www.daveandjeremy.com and let us know your desire to learn more or feel free to share your situation with us so we can discuss your options in more detail.

Tax Credit Gone! What Now? Why Buy?

TAX CREDIT IS GONE…

WHAT NOW? / WHY BUY?

More Reasons than 1

 

So now that the First Time Home Buyer Tax Credit is gone, people ask me “Dave, why should I buy a home?” There are so many reasons to buy a home and if you missed the $8000 tax credit and think that buying a home is not as important now…keep reading and see why it is still the best time to buy now!

 

Out of all the reasons to buy a home in today’s market, one reason or another will mean more to you than someone else, so I will simply put my top five reasons to buy a home, the first two are why to buy a home Today!

 

1. Low Interest Rates – I used to be a mortgage broker and never have I seen rates this low. Right now you can get an FHA or Conventional Mortgage for under 5% and VA is offering 4.5% for 30 year fixed! There are also rates under 4% for 5 year Fixed Mortgages. If I could buy more homes I would.

 

2. Home Values – Right now homes are the lowest they are going to be and combined with low interest rates it’s only a matter of time that they will start to increase as people start taking advantage of these rates. We have already seen an increase in home values this year and there are less people loosing their homes to foreclosures. That means it is only going to get better. Slowly, but better.

 

3. Security – I remember as a child growing up in several homes because my parents never owned a home. We always rented and that caused a lot of stress on my Dad because we literally had to move every year. I was never in the same home for over a year because either the seller wanted to increase rents, move back in, sell the home, or he had not made payments and the home was sold at auction. Even though I had a great childhood, I never had those height lines on my bedroom door for every year, or those same friends in the same school district. Today I completely appreciate the fact that I can live in my home without the fear of increasing rent rates or being told that I can’t renew my rental agreement. My son, I hope, will always have the same friends and live in the same house.

 

4. Tax Deductions – I was so amazed at how much interest I was writing off with a purchase money mortgage. Today’s Rates are the best I’ve seen in Years! If you purchased a home today for $250,000 even at 5% you would be able after one year to deduct over $12,000! The monthly payment (not including taxes and insurance) would be less than $1400 a month. Have you seen what you can get now for $250K! Call me today and I can let you know what you can expect pending how much you can afford to purchase. If you’re renting, you know that it is just going in the owners pocket and he is getting the benefits.

 

5. Investment – When I purchased my first home in 2004 I bought it for $166,000 and that included closing costs. It of course has gone up and down with the housing bubble, but even still, today it is valued at $180K…so even with the ups and the downs, Real Estate will always go up. My brother bought a home in 1999 for $125K that is now worth roughly $200K. If he sold it today that would pay for two college educations! Think about that!

 

When you’re ready to buy, or sell, please make sure you contact Dave and Jeremy for up to date information on the market as well as expert marketing and negotiating. We understand the entire process and can refer you to great mortgage brokers and other industry professionals!

We Are One The News!!!

As Real Estate Agents, any agent can work with buyers who today who can’t get a mortgage due to strict lending guidelines…but they don’t because it is not as proffitable or they feel it is too risky.  A few years back we started Lease Option Group and then added Owner Finance Group.  Since then we have been very successful with buyer referrals from the District Attorney and being noticed by the media including the Oregonian and Katu Channel 2 News Portland.  Here is a clip of the broadcast about Owner Financing.  Anna Song interviewed Dave Van Nus and the buyer and sellers in this video both worked with Dave and Jeremy.  In fact, right after this broadcast, the sellers home sold a week later.  The power of Creative Financing should always be explained even if it is not an option.  In this market you have the right to know.

For More Info On Lease Options or Owner Financing go to our website and contact Dave and Jeremy

To Watch the Video, go to www.DaveAndJeremy.com/Owner-Financing.asp

What is an owner contract or owner financing?

An owner contract or also sometimes called owner financing or an owner will carry is a way to buy real estate in which the owner or seller of the property will sell the property to the buyer through a private real estate contract. This eliminates the need for bank financing.

An attorney usually prepares the real estate contract for both parties to sign. The seller is selling the home on contract subject to the terms in the real estate contract agreed to by both parties. The buyer would then make payments directly to the seller instead of a bank. Most real estate contracts follow the terms of a traditional loan but can be any agreed upon terms between the parties.

Most real estate contracts are recorded on title and the buyer is recorded as a contact owner. The buyer owns the property subject to the terms of the contract. A real estate contract does not have to be recorded for it to be valid. However, it is highly recommended and in the buyer’s best interest to have the contract recorded on title. This serves as notice to the public that the property is being sold on contract and will prevent the seller from obtaining future financing on the property or trying to sell or transfer title to the property without the buyer of record’s permission. It also makes it easier for the buyer to obtain a loan in the future to pay off the contract from a lender because it shows a clear recorded record of when the property was purchases on contract.

Most sellers who sell their property on contract usually want a down payment in the range of 10% to 20% of the purchase price and carry the balance on contract. This is the typical expected range but any agreed upon terms can be negotiated. Most sellers also prefer a shorter contract period and want to get paid off reasonably quick. For this reason most real estate contracts have a balloon payment which requires the entire balance to be paid off within a certain date. A real estate contract with a 5 year balloon payment is widely accepted. This means the buyer would make agreed upon payments according to the contract and then the remaining entire balance would be due in 5 years from the date of the contract. Most buyers would then refinance the contract to pay off the balance. Again, any terms can be negotiated between the parties.

If the seller has an underlying loan on the property then the real estate contract would be considered or called a wrap around contract subject to the terms of the existing loan. In this case most lenders have a due on sale clause. This means the lender can call the note due if the property is sold and require that the note be paid off. It is highly recommended that any underlying lien holders are notified that the property will be sold on contract and give their written permission of the contract prior to the contract being executed. This will help to eliminate potential hassles and risk associated with lien holders in the future.

It is also highly recommended that all contract payments be made through a third party escrow company and the escrow company is instructed to pay any underlying lien holders, annual taxes, and an annual insurance policy for the property. This helps to protect both parties. It assures the buyer that any underlying lien holders are paid and prevents the seller from allowing it to go into foreclosure in the future. The third party escrow company also has a record of all the payments received and will be able to easily calculate any payoff in the future. This makes it easier for the buyer to show his payment record and is an important way for a lender to see the buyer’s established payment history making it much easier to obtain financing in the future from a lender. If taxes and insurance are included in the payments through the third party escrow company it will protect both the buyer and the seller in ensuring that the taxes will be current and an active insurance policy will remain on the property.

In regards to any existing liens on the property, it is a good idea to make sure the total balance of all the liens are less then the balance of the contract. This ensures the seller and the buyer that the existing liens will be extinguished either before or whenever the contract is paid in full. It is also recommended that the real estate contract contain provisions stating the buyer and seller agree not to further encumber the property during the contract. This protects both parties.

Properly written and with adequate protection for both parties an owner contract is a very good and very effective way to purchase and sell real estate without involving a traditional lender.

Jeremy Jordan
Helping America RE/GROW!
Principal Broker,
RE/MAX Metro Gold
Lease Option Group™
www.leaseoptiongrouphomes.com
503-726-4653 (office)
503-209-6183 (cell)
503-726-4654 (fax)

How can a buyer be protected in an lease option or an owner contract from the seller letting the property go to foreclosure?

There is a very simple solution here. ALWAYS have the buyer make payments through a third party contract collections company or escrow company that handles contract collections. This is a very important step to help protect the buyer’s interest in the property. This should be the case in both a lease option and an owner contract. The buyer will make payments to the third party contract collection company each month and then the contract collection company will make the underlying mortgage payment if there is one for the seller and then send any extra balance to the seller. The contract collection company can also make the annual or semi annual tax payment on the property and an annual insurance premium for the property. This will help in three important ways.

1. It ensures both the buyer and the seller that the underlying mortgage payment is always made each month the buyer makes a payment which in turn will remove any chance that the seller may stop making payments and allow the property to go to foreclosure.

2. It provides a record of the buyer making timely monthly payments to the seller. This is very important to a potential lender providing a loan for the buyer in the future. The third party contract collections company will be able to provide a verification of mortgage to a lender that the buyer has been making timely payments which is a very important condition of getting a conventional loan.

3. The third party contract collection company will keep accurate accounting records of the payments made by the buyer and will provide monthly or annual reports to both the buyer and seller. This is an easy way to always know what the remaining balance is for either party when requested. It makes it easy to know a required payoff when the buyer wishes to exercise the option or refinance the owner contract.

In all offers that are presented for buyers make sure that you request that the payments be made to a third party contract collections company and the third party contract collections company is to make the underlying mortgage payment. Also ask that the cost of the contract collection company to be split equally between the buyer and the seller. You also want to request that escrow is to figure out what the annual taxes are an the cost of an annual insurance policy for the buyer and ad that into the monthly payment by the buyer to the contract collection company. This will keep the property current on taxes and will ensure the seller that the insurance policy is always kept current on the property protecting both parties.

Each company has different fees depending on how many disbursements they make for the clients each month. A typical monthly fee should be around $18.00 per month so $9.00 per party. This will come out of the monthly payment each month.

Make sure the title company has the name and the number of the contract collection to be used in the transaction. Both parties will have to fill out an application and sign escrow instructions with the contract collections company telling the company exactly what to do with the funds collected each month. This can be handled through the title company at closing.
Jeremy Jordan
Helping America RE/GROW!
Principal Broker,
RE/MAX Metro Gold
Lease Option Group™
www.leaseoptiongrouphomes.com
503-726-4653 (office)
503-209-6183 (cell)
503-726-4654 (fax)

Hello world!

Welcome to Lease Option Group’s™ New Blog.  We are very excited about providing you with the most up to date information concerning Owner Financing and Lease Options, as well as a lot of Real Estate related article’s in attempt to educate and provide several options for your to be able to make an educated decision on what best meets your needs and wants.  Lease Option Group™ is very dedicated to helping America RE/GROW and are always networking outside our area, so any service providers and/or Real Estate Agents throughout the United States who would be interested in working with Lease Option Group™, please contact us and express your interest in assisting us in our attempts to expand Nationwide.  For our friends and clients, thank you for your support and commitment to our cause, and for you the reader, thank you for visiting our blog, we hope that you join us on our journey of proving to Americans that “You Can Be A Home Owner!”

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