Fannie Mae Homepath Foreclosure BUYER INCENTIVE!!

It can pay off pretty big to be clued in to deals in real estate. For many of us, a house is the most expensive investment many of us will every make in our lives. So having someone that can really help you make a smart decision and ease the burden on your wallet can prove to be an invaluable resource. ESPECIALLY knowing that the vast majority of the time, buyer's don't pay their representation a cent. Whoa whoa whoa. What do I mean you say? Seller's agree to pay their listing agent a commission. The listing agent then offers a portion of that commission to a buyer's agent to bring and represent the buyer's side. Thus, the buyer's don't pay their agent anything. 

So, as a buyer you effectively are getting someone to help you locate the perfect home, schedule appointments to see them, handle contracts and other necessary documents, negotiate on your behalf, have referrals for appraisers, surveyors, inspectors, adhere to timelines, deliver monies, walk you through inspections, possibly re-negotiate, preparing amendments/addendums, make sure your financing is progressing along with regard to the deadline, review documents before closing, make sure closing goes smoothly, and after closing make sure you have a good referral for moving companies, flooring, handymen, painters, landscapers, and much more ALL FOR FREE!? In addition to providing advice on the scope of risk as an investment? If you are going to purchase a home and the representation is free, why would you not want someone who can assist in potentially maximizing the potential of one of the largest investments you will make in your life?

It's my duty to the people to inform the public of particular happenings in the market that could minimize the risk to their wallets. My website, www.I-Am-Real-Estate.com serves as a moniker of the service I provide to the people of the Austin metro. At the end of a grand opera performance they throw roses, at a wedding celebration they throw rice, at a Detroit Red Wings game they throw octopus, but Chris Matthews throws SAVINGS!! 

Fannie Mae is offering up to 3.5% closing cost assistance for their REO Foreclosure Homepath properties. The incentive is offered in an effort to help more buyers afford their new homes. The incentive begins on April 11th 2011 and running through June 30th 2011. So in addition to getting a foreclosure-type deal on price, you also get the benefit of tremendous savings on closing costs. YAY! Search for Fannie Mae foreclosures at www.Homepath.com

Eligibility Details:

•  Initial offers must be submitted on or after April 1, 2011
• Buyers must be owner occupants (i.e. primary residence and will have to sign an Affidavit stating so that needs to accompany the initial offer)
• The sale must close on or before June 30, 2011
• Other restrictions apply.  For more information visit the "Special Offers" tab at www.HomePath.com

Jeff Goldblum Wants Buyer's To Keep Buying!

Coming this summer, the FHA will lower the maximum amount that seller’s can contribute for buyer’s closing costs. Currently, the seller can pay a maximum of 6% of the sales price towards the buyer’s closing costs. Starting soon, it will be reduced to 3% of the sales price. The change will take place in “early summer,” according to the FHA, but no specific date has been set. Buyer’s closing costs typically range from 3.5-5%, so this is no longer a sufficient amount to fully cover the closing costs.

This to me sounds backwards. The purpose of the tax credits, low interest rates, and all of this adjustment to lending practices was to get people into homes. Of course, they need to be able to afford the home and be well-qualified to maintain payments, but why regulate closing costs? If a buyer asks for closing costs to be paid it doesn't mean they aren’t well-qualified. It just means they are trying to minimize out-of-pocket spending. If the seller has sufficient equity in his home, it makes no difference if they pay the buyer’s closing costs because it will just come off the bottom line pay out. It can just come out in negotiations. For instance, house is listed for $200,000. Buyer offers $202,500 with $5,500 in closing costs and as long as it appraises, it works. See what I did there? I’m a wizard.

I just don’t see the point of lowering seller contributions right now. Especially when the government was throwing $8,000 non-repayable at people to buy. It’s an abrupt change from seemingly doing anything they can to get people in, to making it difficult with a rise in FHA mortgage insurance premiums and now reduction in seller contributions.

It’s one of those things we may never understand, like why Hollywood doesn’t put Jeff Goldblum in more movies. The guy hasn’t been in a big time role since Jurassic Park in 1997! He’s The Fly! Jeff and I once had an intimate, one-on-one conversation, no joke. Let me take you back to a time when I was enrolled at Calvin College in Grand Rapids, Michigan. I worked part-time at a market research firm as a Senior Research Specialist. One day we were doing a survey on a certain hospital branch (confidential) in California and calling Los Angeles-area residents. Well, my system auto-dialed a man named ‘Jeff’ and I swear it was Jeff Goldblum.

Jeff Goldblum has a very distinct voice, he probably lives somewhere in Los Angeles, and this guy’s name was Jeff! All of that equals that I spoke to a movie star. Jealous? The guy was super nice, very intelligent, and we spoke for about 30 minutes about my college life, living in California, the health care system, and he even gave me relationship advice that led to me breaking up with my girlfriend! Jeff said, “She’s no good. You can do better and you deserve better, Chris.” When Jeff Goldblum gives you advice, you listen. He sounded EXACTLY like Jeff. I feel after our conversation I’m comfortable enough for a first-name-basis relationship. Jeff has a nice voice. It’s different, but rhythmic.

You’re probably wanting to know, “Why didn’t you just ask if it was Jeff Goldblum if you guys are like best friends?” Well, easy answer. Jeff doesn’t need to be hounded. Talking to some market research guy in Michigan is the only place Jeff can find anonymity and be unrecognized for a brief moment. Who am I to destroy and violate that with my accusations? Hollywood hasn’t been nice to Jeff lately, so I took it upon myself to do him a favor. So long-story-short, ever since that day, I’ve been a Jeff Goldblum fan and I know for a fact that Jeff would agree that seller contributions should not be reduced.