Waiting Period after Short Sale or Foreclosure

How Soon Can I Get a Loan

One of the questions clients often ask me is “How long do you have to wait after you go through a short sale or a foreclosure to qualify for a new loan.  Although I do not do loans, I know the answer is “it depends.”   I hope the following information furnished by Dan Dobbs of American Commerce Mortgage will help answer some of your questions.  In addition, you should always consult your own tax advisor and attorney before starting a short sale or foreclosure on your San Diego North County home.

There is much “mis” information regarding the length of time borrowers are required to wait between the final date of the foreclosure / short sale and the date the new escrow opening.

Wait periods can be as short as 2 years or as long as 7 years.

What contributes to the confusion….are the additional “overlays” (additional underwriting criteria) for each specific investor.

Criteria are different for “conventional” loans vs. FHA/VA loans.

For both types…..what determines the “wait time” is your buyer’s (i.e. former “short seller”) circumstances at the time of the sale?

Specifically….what were the “extenuating circumstances” that can be clearly documented. (The “burden of proof” will clearly be on the buyer and there is USUALLY more than just ONE circumstance)!
Examples of extenuating circumstances are:

1) Job loss job in a specialized field and what caused the extended period of time to find a new job.

2) Significant health issues for borrower or close family member.

3) Death /illness of close family member PARTICULARLY if the victim is a signatory on the loan. (must provide medical records and/ or death certificate).
Strategic Defaults

Strategic Defaults

Buyers are NOT eligible for a new FHA- INSURED MORTGAGE ….if they pursued a short sale agreement on their principal residence simply to:

1) Take advantage of declining market conditions


2) Purchased at a reduced price…a similar or superior property…within a reasonable commuting distance.

In other words if your buyer engaged in a “strategic default”…they can kiss off any FHA financing for the foreseeable future.

Buyers seeking “conventional financing” who previously “strategically defaulted” currently have up to a 7 year wait period before they are eligible for financing.

For information on San Diego North County homes, contact Gary Harmon, your Real Living Lifestyles Realtor.

Now is the Time to Buy a Carlsbad North County Home

The Carlsbad and San Diego North County housing downturn will reverse itself one day, will you have missed out? While economists and consumers may be uncertain when the bottom will come, there are growing signs that it’s already here or extremely close. The best time to buy a Carlsbad home is now — and here’s why.

It’s hard to tell if the Carlsbad or San Diego North County housing market has reached bottom until prices and sales volume start to rise again. So the best time to buy is when market conditions are indicating the approach of a bottom. To take advantage of near-record low mortgage interest rates and home prices as low as they were a decade ago, home buyers may have to take some risks, such as riding out another short-term dip in property values.
But the rewards may be well worth it. A number of factors point to a small window of opportunity to buy “at the bottom” before the market turns more favorable. Here are the six greatest reasons to buy a home right now:

  1. The economy is growing
  2. More jobs are available
  3. Houses are a hedge against inflation
  4. Mortgage interest rates are near record lows
  5. Pent-up demand is ready to release
  6. Buy-versus-rent ratios favor home ownership

I just met a lender named Mike West with Sierra Pacific.  I am very impressed with his knowledge and follow through.  He put together a great video to share with you.  It is called “The Why and How of Purchasing a New Home.”  Please take the time to watch it, it may save you an incrediable amount of money.

In becoming one of the top real estate lenders in the nation,  Sierra Pacific Mortgage also became one of the most widely respected mortgage banking companies in the country.  Having weathered economic storms and withstood the test of time, SPM has earned the respect and admiration of their peers while continuing to thrive as an industry leader and maintain their solid reputation of integrity, stability and character.  Since 1986 they have been a progressive leader in both wholesale and retail lending offering cutting edge technology, market leading pricing and reliable service. When you examine them, two things are clear. They are here to stay and are here to serve their customers. Contact Mike West, 760-208-1739 for more information.

Advice for Carlsbad and San Diego North County buyers: A housing recovery doesn’t proceed in a straight line. The question is, how deep are the dips? San Diego buyers could wait for even better conditions, but the current alignment of falling mortgage interest rates, lower home prices, and wider selection is unlikely to happen again. Prices may go lower, but mortgage interest rates may go higher. If this isn’t the bottom, it’s very close. Act now.

Need help ? Contact Gary Harmon, and find your San Diego North County home now. See Current Listings of ALL San Diego homes.

Benefits of a VA Loan in San Diego North County

When buying  San Diego North County homes, what are the benefits of using a VA loan.  See benefits below picture.

Oceanside homes for salePurchase 100% LTV for loan amounts up to $537,500

  • Rate/term and cash-out refis up to 90%
  • Loan Amounts to $1.5 million
  • Entire down payment may be gifted
  • Seller contributions allowed for debt payoff and closing cost
  • VA Funding fee may be a seller credit
  • Not reserve requirements
  • No monthly MI
  • No declining market reductions
  • VA Streamline Refis – No Appraisal – No Income – No Assets

Do you qualifiy for a VA loan on you next San Diego North County home?  Contact Gary Harmon, he will put you intouch with a top VA lender on the Gary Harmon team.

Benefits of an FHA Loan

What are the main benefits of an FHA loan or mortgage?  See answers under photo.

  • You can get a loan approval to buy a Carlsbad home or other San Diego real estate with a loan of up to $697,500.
  • San Diego buyers only have to put 3.5% as a downpayment.
  • The Carlsbad real estate seller can credit up to 6% for all closing cost ( recurring and non-recurring).
  • The North County buyer can get a gift from a family member which is allowed to cover all cash to close.
  • You can have a 640 minimum FICO score.
  • There are no declining market reductions to LTV.
  • The process is streamline: no appraisal, no cost refinance available (must be paying off FHA loan).

Any questions about an FHA loan, contact Gary Harmon.  He will put you in touch with an expert San Diego North County lender such as Charla Rueda of Conerstone Lending.

Rent vs Buy – San Deigo Homes

San Diego North County Homes make good investments, so why rent when you can buy?   Moving from “Renter” to “Owner” may be easier than you think.  You may be able to find a San Diego North County home with a total monthly payment comparable to your current rent payment!
Interest rate and payment illustrations are below. Contact Gary Harmon, and I will put you intouch with Home Services Lending for current interest rate and payment information. Rates are illustrative and are subject to change daily.

Payments will vary during the initial 123 months due to annual adjustments to the required monthly mortgage insurance premium. After 123 months the mortgage insurance premium is dropped. Closing costs are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan and payment amounts will be higher. Your loan’s interest rate will depend upon the specific characteristics of the loan transaction and your credit profile up to the time of closing. Amounts shown for hazard insurance and taxes are estimates and are subject to change.
1. Financing the UFMIP is optional. Borrower can pay the premium at closing.

Get Started Now

Take your first step to buying your San Diego North County home by talking to a tax advisor for more information. To get more information about borrowing money see HomeServices Lending.  To get more information about buying a San Diego North County home, contact Gary Harmon, your North County Realtor.

Current Listings of ALL San Diego homes is the easiest way to see photos and get details about what is available in San Diego North County.

Gary Harmon and Recommended Lenders

Gary Harmon – Real Living Lifestyles – Preferred Lenders

Gary Harmon has worked with many lenders over his 23 years in serving San Diego North County real estate  needs.  That is why Gary is glad to recommend a number of great lender choices to his North County clients.

Gary services all areas of San Diego North County including   Carlsbad homes, Oceanside homes for sale, Encinitas homes, Vista, San Marcos, and Escondido real estate.   Gary also specializes in San Diego Ocean View homes and  San Diego North County homes for over 55Contact Gary Harmon for your free personalized tour of any San Diego North County homes or to find out Gary’s preferred lenders.

The Time to Buy Escondido Real Estate is NOW

Many think the time to buy is now

Prudential California Realty took a real estate outlook survey in 2010 and found most Southern California and San Diego North County buyers think now is the time to buy.

Time to buy Escondido Real Estate

There are only 10 of homebuyers that did not think this is the  time to buy.  If you have been on the fence, get in the game and find your Escondido home now.  Contact Gary Harmon, one of the top Escondido Realtors, for more information.

San Diego North County buyers see the market moving towards stability

The number of Southern California consumers who believe the Escondido real estate market and other San Diego North County real estate markets are stable outnumber the percent who believe the market is unstable.

Escondido real estate market stability

There are only 29% of Souther California buyers that think the real estate market is unstable.  That leaves 71% implying that “the time to buy Escondido real estate  is NOW.”

Most Escondido real estate buyers believe the real estate market is on an upward trajectory

Over 26 % of homebuyers think the Escondido real estate market is stronger than it was a year ago.  And, one year from now, 51% expedct to see the San Diego North county real estate market even stronger.  The survey only saw 7% who thought it would be weaker.  With market and prices going up, now is the time to contact Gary Harmon, your top North County realtor.

North County buyers see potential for appreciation in both short and long term

North County homes appreciation

North County buyers see appreciation coming.  Over 46% of Souther California buyers expect real estate prices to apreciate in the next year.  Current data for San Diego North County shows that is actually happening.  In the next 5 years, 79% expect prices to increase.  Don’t let this good market pass you by, contact Gary Harmon today.

Current interest rates help make the time to buy NOW

HomeServices Lending is one of Gary Harmon’s Winning Team members.  Contact them for current rates and to get prequalified today.

Escondido real estate and HomeServices Lending

For an experience Escondido real estate agent, contact Gary Harmon, your top Escondido Realtor.

Monthy Principal & Interest Payments

Estimated Monthly Payment Factors per $1000 on a 15 and 30 Year Fixed Loan.

If you are buying Escondido real estate or other North County homes, the first thing you need to do is to determine if you can afford the payments.  If you like to do-it-yourself, the tables below will help get you off to a good start.  If you would like professional help, call me and I will put introduce you to one of my team members at HomeServices Lending

To estimate your monthly principal and interest mortgage payment, divide the loan amount by $1000 and multiply by the payment factors below for the interest rate and loan term you are considering.  This factor does not include San Diego North County property taxes.  You can estimate the basic anual taxes by multiplying 1.2% times the purchase price of the Escondido home.  You will also have homeowners insurance, possibly homeowners association dues, pmi, and maybe even Mello Roos taxes.  Too confusing, contact Gary Harmon, your North County Realtor for a personal explaination.




Gary Harmon specializes in Carlsbad ocean view property, Encinitas ocean view property, Oceanside ocean view property, as well as all properties in  Carlsbad, Encinitas, Oceanside, Vista, San Marcos, and Escondido.  Contact Gary Harmon,  your top North County Realtor.

Do It Yourself?

Do It Yourself?

Thinking of selling your North County home?  Want it to look its best?  Giving your San Diego North County home a minor facelift may equate to a larger investment than you are willing or able to make.   Should you try to do the minor facelift on your North County house yourself or should you hire a professional to do the job.  To make an informed decision, consider the level of skill required, do you have the tools necessary,  how much time will it take, and can you get the job done correctly the first time.  If you need professional help you should hire the help you need.

Sell Your North County Home

Doing it yourself when selling your North County home is very little different than the minor facelift.

Gary Harmon has the skill level and is the right North County professional for the job.  Gary has the right tools, see Gary Harmon’s Winning Team.  Gary has over 20 years of experience with Prudential California Realty, helping sellers get top dollar for their North County homes.  And finally, Gary has the time to dedicate to the sale of your North County home and will get it right the first  time.

For help selling your home today, contact Gary Harmon, you top North County Realtor.   Don’t loose money and time trying to “Do it Yourself.”  Put Gary Harmon and his team to work for you today.

Inserted article is courtesy of Joyce Nathan of HomeServices Lending San Diego North County.

AB 957 and Encinitas Real Estate

HomeServices LendingThere are many technical things involved in a sale  transaction of Escondido real estate.  Here at Prudential California Realty, Gary Harmon, your Escondido Realtor is here to help. 

Legislation was signed into California law in December 2009 effecting us here in North County. Escondido home buyers and Escondido home sellers should be aware of several points:

1.A seller of REO residential Escondido real estate with four or fewer units “shall not require directly or indirectly as a condition of selling the Escondido property that title insurance covering the Escondido property or escrow service provided in connection with the sale of the property be purchased by the buyer from a particular title insurer or escrow agent.” In plain language it means that the bank, selling bank owned property, can’t require you the Escondido buyer to user their title insurance company or their escrow company. This is only true if you the buyer are paying for these services. Gary’s winning team member, Pickford Escrow and The Escrow Firm have closed over 9,000 REO (bank real estate owned) transactions in the last 18 months.
2.The bill provides that “sale” is intended by the Legislature to “include the receipt of an offer to purchase that residential Escondido property.” – means it is intended to prohibit sellers from conditioning the receipt of an offer to buy an Escondido REO property on the buyer’s agreement to use a specific title insurer or escrow agent. That means the bank has to look at your offer reguardless of which title or escrow company you choose. California Title Company, one of Gary’s winning team members is also experienced in bank REO’s sales.
3.AB 957 does NOT prohibit an Escondido buyer “from agreeing to accept the services of a title insurer or escrow agent recommended by the seller” PROVIDED THAT “written notice of the right to make an independent selection of those services is first provided by the seller to the buyer.” That means it is ok to use who the bank recommends provided they disclose that it is your choice.
4.AB 957 only applies to title insurance or escrow services “purchased by” or paid for by the Escondido buyer. That means if the bank is paying for both sides, they get to pick.
5.A seller who violates AB 957 “Shall be liable to a buyer in an amount equal to three times all charges made for the title insurance or escrow service.” A violation of AB 957 is also deemed to be a violation of the seller’s license law which can subject the seller to discipline by its licensing entity.

For more information reguarding AB 957, contact Gary or HomeServices Lending.