The Lurking Vampire … Mello-Roos

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I have a client who has been pre-approved for $180,000 and is looking at two homes.

House #1 - He is considering an offer at $180,000

House #2 - He is considering an offer at $184,000

The difference in sales price is equal to only about a $20 per month difference in the monthly payment. But guess what? The actual difference in payment between these two homes is over $300 per month!

Do you know why?

One property has incredibly high Mello-Roos/Special Assessment property taxes and the other property does not … and these two properties are less than a mile apart!

This is something most agents and even many loan officers are completely oblivious to and never bother to check. They just tell the buyer, “Oh, the county property tax rate is 1.08%.”

Sure it is, but that doesn’t include the Mello-Roos. In my book, taxes I have to pay are … well, taxes-I-have-to-pay. I don’t care how they’re dressed-up or what name they’re called.

So for the misinformed and unsuspecting homebuyer: They buy the home of their dreams thinking their monthly payment is $X. Then, six months later they get hit with a supplemental tax bill for an additional $3,000!

Next, they get a letter from the mortgage company informing them that their monthly payment is going up by $250 per month in order to balance their impound account!

Not cool!

Moral of the story? I will NEVER let that happen to you or to those you refer.

Hope you have a great weekend and please call me if I can help you with anything at all.

Ken
951-760-3833
KenAHall@gmail.com

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Harvestion in Temecula! 5 bedrooms, 4 baths, 3,311 Sq Ft

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This is our newest bank-owned property in the beautiful planned community of Harveston in Temecula.

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Bank-owned!! Harveston Community!! Cul-de-sac!! 5 bedroom, 4 full bath

Price: $329,000 - $359,000

Property Type: Single Family Residence/D
Bedrooms: 5
Bath(F,T,H,Q): 4,0,0,0
Sqft/Source: 3,311
Sqft Lot/Source: 7,405

Cross Street: Harveston and Margarita
Stories: Two Level
Year Built: 2005


Bank-owned!! FULL REMODEL IN PROGRESS! Fast close of escrow!! Harveston Community!! 5 bedroom, 4 full bath 2 story home on a cul-de-sac. Built in 2005, 7,405 lot square feet. $142 monthly HOA dues. 3 car attached garage with direct entry to home. Too many upgrades.

Harveston is a wonderful world of amenities including a large lake, boats, parks, walking trails, a sports park, splash park, community pool, banquet facilities, and more. Close to schools, shopping, both 15 and 215 freeways, casino's, golf, and more. It doesn't get much better than this! Hurry!


************ LOW CREDIT SCORE OK!! **************

********** I WILL ELIMINATE YOUR BAD DEBTS AND RAISE YOUR CREDIT SCORE!! **

************ BUY THIS HOME WITH ONLY 1% DOWN PAYMENT WITH HUD DOWN PAYMENT ASSISSTANCE PROGRAM!!! **************

************ OR 100% FINANCING WITH YOUR VETERAN'S ADMINISTRATION ELIGIBILITY!!!


************ APPOINTMENT ONLY *************

************ NO AGENTS PLEASE! ************



Contact: Ken Hall at 951-760-3833


Check out a few of the many folks we've helped! Click on From Debt To Prosperity www.FromDebtToProsperity.com

My client just became a victim of FRAUD …

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I was talking with a past client last week and he told me how he just recently became an unwitting victim of fraud.

Specifically, ‘check-washing’ fraud.

‘Check-washing’ is a process where low-life fraudsters steal your mail and erase the ink on a check using common household chemicals. Then, they rewrite the check to themselves. If that wasn’t bad enough, they typically increase the amount payable by hundreds or even thousands of dollars.

My client has no idea how the fraudsters got hold of his check as his neighborhood mail box and it’s out-going mail box showed no signs of break-in. Regardless, they took him for over $2,000.

I first heard about this a couple of years ago and discovered if you use a ‘Uni-Ball Jetstream Rollerball Pen’ to write your checks, this “washing” procedure cannot be accomplished. This is a special kind of ink pen that contains tiny particles of color that get trapped into the paper you write your checks on.

Of course, if you pay all your bills online, then you’re ahead of the game.

You can find the Uni-Ball Jetstream Rollerball pens at any office supply store like Staples or Office Depot and you should store this particular pen with your checkbook so that every time you pay your bills you can use it.

Hope you have a great weekend and please call me if I can help you in any way.

P.S. I’ll be hosting an Open House today (Saturday) from 12 noon – 5 p.m. in the beautiful Harveston Community in Temecula. Beautiful bank-owned home, fully remodeled by the bank and will be listed in the mid $300’s. 28997 Williston Ct.

If you know anyone who might be interested, please call me or send them my way!

951-760-3833

KenAHall@gmail.com

www.FromDebtToProsperity.com

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After a short sale or a foreclosure, will there be taxes owed on the ‘forgiven debt’?

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I have put together a Special Report that covers this important topic but please understand it is for "informational purposes only." I AM NOT offering legal and/or tax advice.

This is a question that should be discussed in depth with an accountant, CPA or tax attorney who can deal specifically with your particular circumstances.

It is a rather lengthy report so I am not posting it as a blog post. Email me if you would like to receive this information and I will send it to you as a pdf attachment.

If you have a friend or loved one who has gone through a short sale or foreclosure, please do them a favor and pass this on to them.

Have a nice weekend and please call me if I can help you in any way.

951-760-3833

KenAHall@gmail.com

www.FromDebtToProsperity.com

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"HOW LONG MUST I WAIT BEFORE I CAN BUY A HOME AFTER FORECLOSURE OR BANKRUPTCY?"

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Dillon and Austin (my eldest and middle sons) winning 3rd place and 4th place in Rancho Christian School's annual science fair Friday night :)

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"HOW LONG MUST I WAIT BEFORE I CAN BUY A HOME AFTER FORECLOSURE OR BANKRUPTCY?"

This is one of the questions I'm asked most often. Many people who were burned early by the financial crisis and recession are now in a perfect position to jump back into homeownership. The difference this time is it's a 50% off sale compared to when they bought the first time.

As I've stated before, it's been generations since housing has been this affordable in the Temecula Valley based on price per square foot and mortgage interest rates.

Please note the parameters below are subject to change but I highly doubt we'll see them become any more strict than they are now. If anything, we may see them loosened in the near future to help facilitate re-sale of the large amount of foreclosure inventory that is still to come.

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BUYING A HOME AFTER FORECLOSURE AND/OR BANKRUPTCY


Federal Housing Administration (FHA)
1) Foreclosure is 3 years
2) Deed-in Lieu is 3 years
3) Short Sale is 3 years - unless payments made on time thru closing
4) Bankruptcy is 2 years

Veterans Administration (VA)
1) Foreclosure is 2 years
2) Deed-in Lieu is 2 years
3) Short Sale is 2 years
4) Bankruptcy is 2 years

Conventional Conforming (FNMA/FHLMC)
1) Foreclosure is 7 years
2) Deed-in-Lieu is 4 years < 80% LTV and 5 years > 80% LTV for
primary residences. 7 years for second homes and investment properties
regardless of LTV.
3) Short Sales is 2 years < 80% LTV and 5 years > 80% LTV and 7 years >
90% LTV
4) Bankruptcy is 4 years

Conventional Non-Conforming (JUMBO)
1) Foreclosure is 7 years
2) Deed-in-Lieu is 7 years
3) Short Sale is 7 years
4) Bankruptcy is 7 years

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Another Billionaire says, “BUY REAL ESTATE NOW”

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Dillon’s (my eldest) school photography class award winning photo, “Sunset in Temecula”

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Another Billionaire says, “BUY REAL ESTATE NOW”

In my January 13th blog posting, I told you about John Paulson, the billionaire hedge fund manager who switched from betting against housing to now telling people they should buy a house…or even two houses.

Bill Ackman, the successful hedge fund manager behind Pershing Square Capital Management, is another case in point. He, too, saw the housing bubble before it popped. He made a now famous argument as to why the stock of MBIA, which guaranteed the slop coming out of the mortgage factories during the bubble, was going to crumble. And it did, netting Ackman more than $1 billion. MBIA was, at the time, one of the five biggest financial institutions in the US.

But now, like Paulson, Ackman is bullish on US housing. He recently made a compelling case for buying real estate NOW!

First, housing is cheaper now than it’s been in a generation. The median income is now 78% above what it takes to qualify for a fixed-rate loan on 80% of the median purchase price. Mix that with housing prices that are 30% off their peak nationally and low mortgage rates and you get a cocktail of affordable housing.

The second key part to the argument is to look at the number of forced sellers. As a buyer, it is more favorable to you if you buy from people who have to sell. Makes sense, right?

In housing, about 30% of sellers are in foreclosure or approaching it. These are national figures, so in markets like ours in Riverside County, there are more forced sellers than others. “Buyers benefit when conventional sellers compete with distressed sales,” Ackman says.

Ultimately, this process is good for the home market. As Ackman points out, “Overpriced and overleveraged homes will be transitioned to new, stable owners at more reasonable prices and on more favorable financing terms.” From such stable bases, new bull markets are born.

Third, we look again at financing terms and costs. You can borrow at about 5% fixed for up to 30 years, putting down only 20% (3.5% for FHA loans). You have no prepayment penalties – so you can, if rates fall, refinance. But if rates rise, you can sit tight. And you can deduct the interest from your taxes. It's a sweetheart deal!

Rates, by the way, haven’t been this low since the Freddie Mac survey began.
This also makes for a great inflation hedge. Even small price increases multiply the equity in your house, assuming conventional 80% financing and a 10-year holding period.

People who are skeptical of housing think prices won’t rise anytime soon. But as this exercise shows, you don’t need much of an increase. Even a 1% annual increase over a 10-year period gives you 2.7 times your money. Anything better and your upside soars!

Paulson and Ackman – two great investors – made fortunes betting against housing, but now they’ve changed their views as the market changed. Maybe we should too.

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Credit Repaired *** Debt Eliminated *** GUARANTEED *** www.FromDebtToProsperity.com

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My awesome dog, "Dash" ... truly man's best friend :)

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*** Credit Repaired ***
*** Debt Eliminated ***
*** GUARANTEED ***
*** www.FromDebtToProsperity.com ***

As a valued client and long-time sufferer of my Blog postings, you are probably aware that for many years I’ve been regarded as one of the top credit repair specialists in California.

In 2003, I wrote a book titled:

“How To Repair Your Credit and Qualify for a No-Money Down, Low Interest Rate Home Loan in 30 Days.”

The E-Book version became an internet sensation and turned me into an internet celebrity, albeit a minor one (I think you’re required to be involved in a Lindsey Lohan-esque scandal to be considered “major.”)

I’m excited to announce that I am now in possession of the knowledge and tools to take “credit repair” to the next level. The next level is actual and literal “debt elimination.”

Very long story short: I worked with (and paid a significant amount of money to) an accomplished attorney specializing in the Fair Credit Report Act. I now have in my possession the legal documents that make up the “Administrative Process” needed to actually eliminate bad debts (i.e., collection accounts and charge-offs) from your credit report.

It’s complicated and involves a great deal of “legallesse” and I would be happy to explain it to you in its most basic terms. But what’s most important for you to know is: It gives you the power to permanently repair your credit and eliminate old collection accounts and charge-offs that may have been haunting you for years.

If you or anyone you know is in need of this kind of help, please call or send them my way today.

I can be reached at 951-760-3833. Or email me at KenAHall@gmail.com.

www.FromDebtToProsperity.com

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