A New Tax On Mortgage Refinance
A new tax on mortgage refinance is a brilliant blog written by our fabulous lender, Dan Tharp, with Guild Mortgage. –Enjoy, JaCi Wallace. Dan has some good news and some bad news. Here’s the bad news first.
Last week, the Federal Housing Finance Agency (FHFA) announced a surprise fee on all new refinance transactions sold to Fannie Mae and Freddie Mac. This is making up approximately two-thirds of all loans. The cost was assessed regardless of the bank or mortgage company you choose to work with . End result, it will increase the interest rate that you had been expecting and had been available.
Hearing this news on a new tax on mortgage refinance was a bit of a shock. This sudden move came as a surprise; both in the imposition of the fee, and in making the fee effective almost immediately. Historically, they allowed 60-90 days before the new pricing went into effect. This time frame will enable lenders reasonable time to close their rate lock pipelines.
Why are they introducing a new fee?
Two reasons. First, both Fannie and Freddie are concerned about the uncertainty surrounding future mortgage defaults and the increased costs they incur. Secondly, they are worried about how quickly their current mortgages are prepaying due to the unprecedented wave of refinances. When a loan refinances, the prior loan comes out of the security, which creates losses to the investor who owns that mortgage. By raising the cost to refinance, it will slow down how past loans are paying off.
What is the impact to borrowers?
- Across the country, lenders are adding these new refinance fees into rate sheets effective immediately for all conventional conforming refinances.
- These fees are on top of all other fees already charged by Fannie and Freddie.
What Happens Next?
The mortgage industry is united in its disappointment with the announcements. More specifically this disappointment is with the break from all past precedent of providing a reasonable advance notice of the effective date. The probability of FHFA, Fannie Mae or Freddie Mac revising their announcements with a different effective date, is probably low.
Now for some good news…
Interest Rates are still at extraordinarily low levels. Refinancing may be a smart financial move, which can save you money every month or reduce the number of years remaining on your mortgage. You may also be able to consolidate your debts to save even more money.
Let’s take a look at your unique situation to see if you can benefit from this opportunity. Call me, Dan Tharp, your mortgage professional. with Guild Mortgage. I can be reached at 916-257-1470.
— Dan Tharp NMLS #280913
If you need a solid team of experienced Realtors, call Weintraub & Wallace with RE/MAX Gold. Our contact number is 916-233-6759.
Personal Property In Sacramento Probate Sale
Personal property in Sacramento Probate sale is a diverse topic. I have sold a probate property with a truck, all the contents, and building supplies included in the purchase. Is this common? No, not common at all, but things can happen in a Probate sale based on the Trustee or Estate Administrator’s instructions. Always run this by your legal team first, before attempting personal property transfers within a real estate sale.
The photo posted above I took while my client, the administrator of this estate, was on site. She has been a real trooper while working through so many issues. She is kind and generous to all the workers, saying so many times the endless, “thank-you.” It takes fortitude and courage to administer an estate. It is a huge undertaking to clean up the remnants of a lifetime. She suited up in coveralls and marched into whatever we faced. Her husband was there every step of the way, he is handy with tools and supportive. Every time something was needed, off to home depot, he went without a complaint. I feel blessed to know these two exceptional human beings.
This property had about seven plus loads of debris removed. There had evidently been squatters in the property. We discovered extension cords running about. Portable lights were sitting on the sink next to a water source, and lights hooked on boards left outside the second-story windows. The old food in the fridge was emptied out. The utilities were powered on, but unknown in whose name. The utility companies keep that information private. Squatters seem to sometimes move into a property after an occupant vacates or passes away. How do they get utilities on and collect mail? No one knows, but in this case, somehow, it happened. Some neighbors speculated, but who really knows?
The good news to date is that this property is cleaned and now closed up. The broken windows are boarded. It is a good feeling for all. This grand historical location was reported to be quite a well cared for property, back in the day. Someone will bring this home back to full rehabilitation one day and what a beautiful sight that will be.
This property had rodent feces everywhere, and the contents appeared rummaged through. If there was anything of value in there at one time, it was long gone now. The carpet was stained and filthy. The rodents and who knows what else had destroyed the rugs, and the odors are better left to the imagination. These junk haulers emptied the debris and carpets from the interior.
After the interior has been emptied, we have a sanitation crew that comes in, and steam cleans the walls, floors, and surfaces. The goal is to get a property clean enough to walk through after potentially dealing with fleas, spiders, wasps, dust mites, and or rodents. The next stop is a professional pest report. This same crew also cleaned the back-yard up. It is hard to believe that in less than three weeks, what appeared as a mountain of work, is now completed.
The chain-link fence goes up on the front perimeter in the next few days to discourage squatters. Someone also kicked in the front door with the new deadbolt. The door has been reinforced, the locks have been changed, and utilities now are in the estate Administrator’s name. The security monitored burglar alarm, is now in full force. The Sacramento Police department will be dispatched if further troubles persist.
We have a fabulous Probate Attorney on this case. What people may not understand is to sell a property when someone has died or is in conservatorship, you must have the letters or the trust documents. These legal documents verify for a title company and or real estate brokerage who specifically, has the legal authority to sign. When these steps are skipped over, it can create more chaos. A fictitious deed or whatever title issues may appear, all title issues must be cleared to confirm a sale of real property. Depending on the case and the directions from the attorney of record, we sometimes obtain a buyer, subject to court confirmation of the sale.
For all of the above reasons, I am often referred listings to sell probate and trust properties. I have been selling real estate for almost 25 years and working for over a decade concentrating on probate and or trust sales expertise. I have also been called to testify in the Probate Court and previously declared as an expert witness. Some of the more complicated properties I have sold were held in trust with several attorneys involved. A trust is not the end-all in many cases. Someone can file and contest a trust sale as the heirs may get into squabbles about the trust. So many complications can arise. My best advice is always to direct the client to seek legal advice first. This is my first step and has always proven to be sage and trusted advice from my first legal mentor, bless his soul.
If you find yourself questioning how to work through the personal property in Sacramento Probate sale, this blog may help. Of course, always consult with your attorney first, before taking action steps. If you need real estate expertise with over a decade of trust and probate sales, call Weintraub & Wallace Realtors with RE/MAX Gold. We can be reached at 916-233-6759.
–JaCi Wallace
July 2020 Sacramento County Housing Market Update
July 2020 Sacramento County housing market update written by Josh Amolsch, is a terrific post, very informative, ENJOY!
Come January 2021, we may look back at the year 2020 and conclude that “unprecedented” was the word of the year. I can think of a few more words too, but that would be for a different blog. That word comes in to play for the July 2020 Sacramento housing market update in a couple of areas. But the driving factor here is nothing new. Inventory is the culprit of rising prices. Take a look at the Month of Inventory for July 2020. I could not find one instance in the last 15 years when the Months of Inventory was at .7 months except for July 2020. Unprecedented. This is down 46.5% from July 2019. Sacramento’s real estate has proven to be very strong during the COVID-era. Stronger than ever, in fact.
Did you hear that one about the 30-year fixed-rate mortgages averaging 2.88% for the week ending August 6th, according to Freddie Mac? Yeah, insane. I have talked to a few people over the last week or so who are waiting to buy “when there is a dip in the market.” Well, a dip may come.
But no one I know sees that happening anytime soon, and I hang out and know some of the best Realtors and Lenders Sacramento has ever seen. Check out the Median Home Price in this July 2020 Sacramento county housing market update. Up 8.5% from July 2019 to $423,000. Unprecedented. We have hit four records for Median Home Price in Sacramento county this year.
So, You Want To Be A Probate Specialist Selling Real Estate?
So, you want to be a probate specialist selling real estate? There is always some sort of issues with title and or the heirs. These matters can take months to get straightened out. Meanwhile, you are talking with the attorney and the seller regularly moving toward having keys made and meeting the locksmith, that is once you have the court orders.
Next, you hope you can get in to evaluate the property, except when squatters are living in the property as per the photo below. This is a real photograph after calling 911 at one of my new probate properties. The Sacramento Police department showed up, and they were so very caring and helpful. Do not ever go inside with squatters as you do not know if they have weapons or are on dangerous narcotics. Always call the men and women in blue as this needs to be handled by the professionals.
Call The Police
Let’s assume you have been able to obtain a listing agreement, now the appointments with various vendors are the next phase. The heirs often need to come and take whatever mementos they want, and this can be a recipe for disaster. Things are often stolen or somehow missing, so now the fun starts. There may be items that need to be sold, items that need to be donated, or things that need to be dumped. This phase can be very time-consuming. Many probates are hoarder houses. Also, rat infestation is often prominent. Baiting and trapping is a process. The clock is ticking. The hours invested grows each day.
Squatters
Utilities are often turned off, or squatters have utility services on. There is never a shortage of items on the probate checklist. This is only the tip of the iceberg, as it can take months and months to get the property ready. There are dozens of vendors to be scheduled. Then later that you are inching closer to putting the property on the MLS. This is not a race, as your patience will be tested time and time again. There are often abandoned vehicles as well.
You can’t make this stuff up
I could talk for days on this subject with hundreds of crazy stories, but I think the photos give you a general idea. If you have questions about your Probate or Trust property, please call Weintraub and Wallace Realtors with RE/MAX Gold real estate. We can be reached at 916-233-6759.
—–JaCi Wallace
The True Cost of Waiting to Buy A Home in Sacramento
The true cost of waiting to buy a home in Sacramento, as written by our fantastic lender, Dan Tharp, with Guild Mortgage., Enjoy. — JaCi Wallace.
I know shopping for a home today is hard work and very frustrating at times. Inventory is low, and demand is high – It may take many offers, and a few tension-filled bidding sessions, before you land that home. Buyers can quickly get discouraged and say, “I am tired of this. I am just going sign a new rental lease instead and try this again in 6 months to a year”.
Sacramento County forecasted appreciation %
Here’s the thing: you can take some time off, but the market isn’t taking time off, even with COVID. For example, in Sacramento County, the forecasted appreciation is 4.22% in just the next six months; let’s quantify that. A home worth $442,000 today would be worth $18,637 more in 6 months. Being careful with this prediction, even if we cut this estimate of appreciation in half to 2.4%, waiting would require you to get a bigger loan, and pay more every month, or put more money down.
The effects of COVID
I think the effects of COVID will continue to ripple through our economy in ways we can’t even imagine. If home prices do dip temporarily, the economic value to a person of owning their own home, and taking advantage of today’s super-low 30-year fixed rates, will put them in a much healthier long term financial position than choosing to rent for the next several years. The key is for people to buy homes that they enjoy living in, with a long term outlook. A short term paper loss is nothing compared to the long term economic benefits a homeowner would receive.
And what about interest rates?
Should you wait until rates go down further? No, the monthly savings with a lower rate are nice but small compared to the missed appreciation and amortization. It could take longer for the incremental savings of a lower rate in the future to make up for the money lost by waiting. Should rates drop significantly, you can always refinance in the future. Stick with it, keep shopping, and you will find something!
And remember, there’s no guarantee that rates head even lower. It’s essential to weigh the individual options for you. To avoid the true cost of waiting to buy a home in Sacramento, call Weintraub & Wallace Realtors with RE/MAX Gold. We can be reached at 916-233-6759. To obtain your financing with a true professional, call Dan Tharp with Guild Mortgage. Contact info below.