Foreclosure Investing for Dummies
First time home buyers, second time home buyers, investors whoever you are, our Denver real estate market in many sectors is prime for making a good deal. Many savvy buyers/investors realize this and are making their purchases now.
Investing in Foreclosures is not for everyone. There are many aspects that need to be considered, researched and understood. If you are thinking about purchasing a distressed property, there’s a new book that might help you understand the process. Written by Ralph Roberts it’s called: Foreclosure Investing For Dummies.
The book is written in plain English and talks about the different foreclosure purchase strategies.
- Banking on Bankruptcies
- Knowing When to Purchase
- Negotiating Short Sales
- Knowing the Lien Holder pecking order
- Tracking down property tax sales
- Bidding for properties at a foreclosure sale
Working with foreclosures is not for the weak of heart. Armed with knowledge of the process, a solid strategy and some investment capital, a wise investor can make a good living by specializing in this market.
The Dummy book is a valuable resource for those who wish to learn or merely brush up on their skills. I highly recommend it!
CHFA ~ an alternative source for financing
Homebuyers are finding their pot of gold at CHFA
Industry news in the finance sector has been scary to say the least. Home buyers are finding themselves with less and less options each passing day. One steady financing resource for purchase funds in Colorado is CHFA.
I received an excellent email from Mark Afman a Senior Loan Consultant with Universal Lending explaining CHFA’s offerings. Mark has given me permission to post his email:
CHFA is a non-profit investor that sells tax free municipal bonds to fund their loans and is there specifically to help low to middle income buyers into homes. They allow FHA and conforming loan programs to be funded through CHFA. The CHFA program is the antidote for the predatory lending practices that are now under so much scrutiny. CHFA sets the Interest rate so a lender could not charge a higher interest rate even if they wanted to and CHFA caps the closing fees that a lender can charge so CHFA is considered a loan program that protects home buyers.
There are 4 programs that CHFA offers. All programs require the buyer to attend a CHFA approved, free first time buyers education course.
1) MRB First Step: This is the program for first time buyers (someone that has not had an ownership interest in a home for at least three years). This is a 30 year fixed loan. There are income limits, for example a 2 person family can not make more then $71,400 a year. There are also purchase limits, for example in the Denver Metro area, the limit is $365,100. CHFA also offers a 3% "Silent 2nd" for down payment assistance. This 2nd mortgage has no interest or payments due for the life of the loan but is is a lien against the property so when the buyer is done with it they have to give it back. So if the buyer sells the property, refinances the mortgage, or lives there for 30 years, the original 3% must be paid back to CHFA. This effectively offers the buyer 100% financing. However, if a buyer uses the CHFA 2nd mortgage for down payment assistance, the interest rate on the 1st mortgage will be 1/4% higher then if they bring their own 3% down payment. The buyer is required to put in a minimum of $1,000 in to the transaction. The interest rates are set by CHFA at an affordable level usually below the normal prevailing market rates. They also cap the amount of closing costs a lender can charge at $600 plus a 1% origination fee. For current rates and information on the training, etc. go to www.CHFAinfo.com
2) Taxable Home Opener: This program is very similar to the MRB First Step program but it allows for non-first time buyers to use the CHFA advantages. The income limits are higher, for example, a 2 person household needs to be under $82,100 and there are no purchase limitations. The rates are about 3/8% higher on the Taxable Home Opener program then the MRB First Step rates but it offers a safe 100% financing option to those that do not have a down payment saved up.
3) HomeStretch: This is a new CHFA program for buyers that may need help keeping their payments lower. It is a 40 year fixed loan and has lender paid mortgage insurance, unlike the other 2 programs. The rates are higher by about 7/8% but with the combination of a longer term and no MI, the payments are generally lower. This program also allows for non-first time buyers to use it. It can also be used for refinancing. This program also allows for Involuntary Unemployment Insurance which pays up to $1500 a month against the mortgage payment for up to 6 months.
4) Home Access: This program is specifically for buyers that have a disability or the parents of a child with a disability. This is for low income, first time buyers. You can find more information at CHFA.
Looking to Denver real estate? Call me! (303-589-2022) Need to finance a home? Call Mark Afman 303-759-7392.
Thanks Mark! We all appreciate your sharing this excellent advice.
Rocky Mountain Balloon Festival
Early this morning the balloons lifted off in the Rocky Mountain Balloon Festival. I was shooting pictures up at Roxborough Park above the balloon site. It was so windy where I was, I didn’t think the balloons would fly. As I descended Long’s Lookout I looked to the north and what a lovely site it was! At least 50 balloons airborne against the horizon.
The Festival continues through Sunday. Oh yes, there’s a Balloon Glow this evening, if I can stay awake that long, I’ll be there!
BTW photo was shot with a 400mm lens, f10 @ 1/500 sec. As I said I was a few miles away as the crow flies.
Denver Children’s Hospital Moves Up in Rank
Aurora, Colorado
U.S. News & World Report lists the top 30 hospitals in the U.S. Denver’s Children’s Hospital moved up to the #4 place after being #7 last year. Children’s Hospital will be relocating to the Fitzsimons Medical Campus in Denver this October 2007.
The top 10 hospitals are:
1. Children’s Hospital of Philadelphia
2. Children’s Hospital Boston
3. Johns Hopkins Hospital, Baltimore
4. The Children’s Hospital, Denver
5. Rainbow Babies and Children’s Hospital, Cleveland
6. Texas Children’s Hospital, Houston
7. Cincinnati Children’s Hospital Medical Center
8. New York-Presbyterian University Hospital of Columbia and Cornell
9. Children’s Hospital and Regional Medical Center, Seattle
10. Lucile Packard Children’s Hospital, Palo Alto, Calif.
Congratulations to Children’s Hospital for all the fine work you do for
Children and their families! You service has not gone unnoticed.
Rocky Mountain Balloon Festival
This weekend at Chatfield State Park join in on the fun at the 2007 Rocky Mountain Balloon Festival with a liftoff at 6:30 a.m. Friday - Sunday.
This morning the weather wasn’t good enough for a safe lift off, but several balloons did inflate to the delight of the crowd. I overheard a pilot saying he’s there more for a media event than anything else.
No kidding. Camera’s were everywhere, pilots and crew were very relaxed and willing to let us shutterbugs crowd their spaces. I loved being able to get right next to the balloon as they were inflating. It is such a thrill to watch yards of flat fabric inflate into glorious kaleidocopes of color!
Overhead were the sounds of guys flying with parachutes and fans attached to their backsides. At first I thought these were called "ultralights" but now I really don’t know what they are called. It certainly looked like a fun thing to do, assuming one wasn’t afraid of heights!
The festivities will grow this weekend. Booths are set up at the park with demonstrations and food. Set the alarm for "Oh dark-30", grab your group and head over to Chatfield State Park. If you have a Colorado Park Pass you can park in the park for free. If not, you can park outside adjacent to the park, but be prepared to walk.
Some folks like to bring lawn chairs and sit on the west side of Wadsworth, watching the event. I prefer to be amongst the balloons as they grow into a colorful forest. That is were the action is!
Oh and if you decide to chase the balloons as they land, the field to the north is full of cactus. Don’t make the same mistake I did last year by showing up in sandals! Protect your feet by wearing hiking boots and watch your step!
As I left this morning I said a silent "thank you" to the people who show up in the middle of the night with their beautiful balloons. They never know if they will get to fly that day until the sun shows up. Just the same they come and put on a show for us.
Thank you Balloon pilots and crew, for making me and so many others smile today. Yes, it’s worth the trip.
Home Values Increase in Cherry Creek High School District
The actually home value increases aren’t in yet, but since John Elway has agreed to be the Football Coach at Cherry Creek High School, values are bound to increase.
How many Centennial want to be coached by #7?
Alot.
Operators are standing by to take calls for the neighborhoods of Cherry Hills, Greenwood Village and kids. Real Estate values will be spiking…throw that ball John!
FHA steps into the limelight
The mortgage industry is in a flux right now. Companies that funded sub-prime loans are hurting, actually they are closing their doors. Respectable companies that routinely made good loans found themselves in a liquidity crisis and are shutting their doors as well.
As the pendulum swings towards the conservative side of lending, many would be home-buyers are finding themselves scrabbling to find funding for their new home.
Buyers who aren’t blessed with a huge down payment are turning to FHA mortgages. FHA loans are backed by the government and could be the answer for many. 100% financing may be going the way of the dinosaur, remembered fondly but extinct.
Saving for a home is back in vague.
FHA requires only a 3% down-payment. Three percent down is not a lot of money, it’s a manageable down payment. The source doesn’t have to be the borrower, the down-payment can come from family in the form of gift funds.
Saving for a home has many benefits.
Mortgage investors love to see buyers with down payments. Families pull together when they have a common goal. The unity of purpose creates a strong bond for everyone involved. The
No Brainer
There is an ad on the radio that makes my skin crawl. The company shall remain nameless, to protect the annoying. You will recognize the ad by what he says, "We don’t need your money!" Yes, you’ve heard it, they are selling refinances and new home loans direct to us from Gullible Island.
We don’t need your money? Yeah sure, those radio ads pay for themselves.
Beautiful Ending…
We stepped outside after dinner tonight to witness the most beautiful rainbow. A full, double rainbow with
all colors strongly visible continued to dazzle us all the way home to Lone Tree. Traffic on I-25 actually slowed down to enjoy this natural sight.
It was a perfect ending to the week…I want to share it with the world.
HBA Parade of Homes
Whether you are in need of a new home or not, the Home Builders Association Parade of Homes makes for an enjoyable afternoon. Checking out the latest design trends and getting to see Aurora’s newest and hottest subdivision at Southshore is worth the trip.
The Parade is manageable this year with five homes being featured. The custom home builders are:
- Remarc Homes presenting "Celebrations" at 7,200 square feet
- Hollyberry Homes showing off "The Boat House" with 3,800 square feet
- Village Homes with "The Shore House" at 6,168 square feet
- John Laing Homes scored well with "Trade Winds" at 3,796 square feet
- Rocky Mountain Custom Homes inspired us with "Montauk Point @Southshore" 6,200 square feet
Not surprising the designs this year focused on integrating out door living, due to the site’s unusual and lovely setting at the shore of Aurora Reservoir. Gracious decks, covered patio’s complete with full outdoor kitchen’s will encourage a homeowner to spend more time in the fresh air.
Media rooms and multiple flat screen TV’s are still popular. Granite finishes are being replaced with styled concrete, glass and other finishes. White cabinets are making a reappearance (I question this, but then what do I know?).
My favorite feature are the wonderful closet finishes. The closet has grown into a classy dressing room experience. What gal wouldn’t love to primp around in style with drawers and space for every cherished item and mirrors to help make sure "the look" is just right? Closets are now part of the luxury experience, not just a dark, dingy place to hide the laundry!
If you want to make a trip to the Parade, be sure to schedule enough time to peruse the many vendors offering services and samples. You can purchase a lunch or snack on site. Parking is plentiful.
If the Parade is not enough house looking for you, continue on to visit the many model homes offered throughout the Southshore area. Make it a day of Lookie Louing.
The Parade of Homes runs now through Labor Day.
Time 10:00 a.m. - 8 p.m. Friday is "date night" and open until 9 p.m.
Take E-470 to Smoky Hill Road, go east and follow the signs to the "Parade of Homes at Southshore"
This site brought to you by Kristal Kraft, a licensed Colorado Real Estate Broker