Green Real Estate Appraiser

Next Housing Bubble? – Payments on Equity Lines Soon to Rise

Posted on November 12, 2013 | Leave a comment

Might the real estate market be heading for a new — and as yet little publicized — financial storm? Maybe.

Some mortgage and credit experts worry that billions of dollars of home equity credit lines that were extended a decade ago during the housing boom could be heading for big trouble soon, creating a new wave of defaults for banks and homeowners.

That’s because these credit lines, which are second mortgages with floating rates and flexible withdrawal terms, carry mandatory “resets” requiring borrowers to begin paying both principal and interest on their balances after 10 years. During the initial 10-year draw period, only interest payments are required.

But the difference between the interest-only and reset payments on these credit lines can be substantial: $500 to $600 or more per month in some cases. If borrowers cannot afford or choose not to make the fully amortizing payments that reduce the principal debt, the bank that owns the note can demand full payment and foreclose on the house if there is sufficient equity.

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Learning from Mortgage Rejection – Call to Action

Posted on October 29, 2013 | Leave a comment

Rejected borrowers should find out exactly why their loan application was denied, then try to remedy or work around the problem. Lenders are required to detail the cause for denial in a formal rejection letter.

In reviewing the letter, borrowers should keep in mind that the larger banks often have overlays, or tighter requirements, than the minimum qualification standards set by Fannie Mae and the Federal Housing Administration, said John Prom, the Manhattan branch manager for the Real Estate Mortgage Network. For example, the bank’s credit score cutoff might be higher than F.H.A.’s.

A borrower rejected by a big bank might be approved elsewhere. Mr. Prom recommends taking your application paperwork to an experienced loan officer for a second opinion. “Last year I picked up a couple of deals because some of the larger banks wouldn’t do 20 percent down on a two-family,” he said. “They wanted 25 percent down. We were able to do it for 20 percent.”

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California – Residential Solar Rebates Extended

Posted on October 25, 2013 | Leave a comment

San Diego households adding rooftop solar panels will be eligible for an additional $5 million in rebates.

State utility regulators approved the rebate extension on Wednesday, at the request of the California Center for Sustainable Energy, which administers the incentive program for customers of San Diego Gas & Electric. The decision shifts some money away from incentives for nonresidential solar projects.

Will solar add value to your home? Contact the real estate appraisers at www.scappraisals.com they are the forerunners green and energy-efficient appraisals in Southern California.

Initiated in 2007, the solar rebate program for customers of California’s investor-owned utilities is running far ahead of its 10 year schedule for adding nearly 2 gigawatts of generation capacity. Allocations for residential solar rebates in San Diego were exhausted in January due to the success of the program.

The revised allocations will open some $5 million to residential solar projects that provide about 25 megawatts of new generation capacity, the energy center said in a statement. Nonresidential projects will have about $13 million to fund approximately 25 megawatts of capacity.

The California Center for Sustainable Energy said it expects to begin taking new applications for residential solar rebates next week.

Rebates under the California Solar Initiative are funded by customers of the state’s four investor-owned utilities. Separate rebates for thermal-solar hot water heaters are still available.

Disclaimer: for information and entertainment purposes only

Next Housing Bubble? – Payments on Equity Lines Soon to Rise

Learning from Mortgage Rejection – Call to Action

California – Residential Solar Rebates Extended

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