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Ralph Otto's Advice

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  • 32 Contributions
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Ralph Otto wrote:

Screening tenanats service

Answer
I just did a google search with:california pre screen tenantand a whole bunch showed up.  I would suggest going that direction.  Keep in mind, even if the service cost $50, it's worth it to avoid a bad tenant - just get verification of income and check references before you pay for the screen.  You may weed them out before you have to spend money.
February 06 2009
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want to refi investment property we owe0.00,,we are 2 months from being discharged from chap13 help

Answer
"Hard Money" is a term used to describe loans that are higher in cost and rate, typically offered by private investors.  For example, 14% and 10 points.  These lenders will loan based primarily on equity, not your credit or ability to pay.In California they are restricted on what they can do with owner occupied properties, but you indicated you wanted to get cash out from your investment property - so in Ohio they may do that.  It's expensive, so hopfully the investment you make with the cash is worth it.
February 06 2009
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home payment 800, rent 2 family and live in apprt for 1year @ 600 then buy another, or sell house

Answer
This depends on your long term plan.  If you want to keep the properties long term as retirement vehicles, don't sell.  If you are more concerned about saving capital gains tax you would have to pay if you convert your primary residence to a rental, then sell.As for paying down debt before purchasing, I disagree.  Consider two scenarios (this will seem counter-intuitive):A:  Buyers apply for a home loan with $30,000 in credit card debt, $600 in credit card payments and $20,000 in the bank.B:  Buyers apply for a home loan with $10,000 in credit card debt, $200 in credit card payments and no money in the bank.Scenario B looks like the buyers can't save any money with only $200 in debt, whereas buyers A can save $20,000 while having $600 in monthly bills. Scenario A looks stronger.You can always pay off the debt when applying if needed, but I would recommend saving as much cash as you can first. I hope this helps.
February 05 2009
(0)

Do these high monthly payments include property taxes as well?

Answer
The quotes that I have given show an amount for property taxes, but it's way off.In California, property taxes are based on the salesprice of the home when it transfers title.  As a general rule, use 1.25% of the purchase price ( $300,000 x 1.25% = $312.50 per month).  I think Zillow is using the current tax rate in it's estimates, which is how many states do it, but not California.There are two other issues to watch out for.  First, if the property has any homeowners association dues or mello roos taxes, the payment can be higher than quoted.Also, many lenders and investors are starting to require that property taxes that are included with your payment are to be initially collected at the current tax rate (if higher than the 1.25%) until the county assessor corrects the amount and issues a new bill.  This can be significant.  Let me give you an example:You buy a bank owned home for $300,000 (which should have a monthly tax amount of $312.50) but the previous owner that went to foreclosure paid $650,000 for that home in 2005 - so the amount you will pay for taxes will initially be $677 per month until the county reassesses.  You will eventually be credited for any extra taxes you pay, but it will affect your cash flow for the first 6-12 months.  It's just something you should be aware of.
February 05 2009
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i would like too view section 8 homes

Answer
I don't know if Zillow distinguishes section 8 homes for rent, but you can check your local HUD office - they should have a list.
February 05 2009
(0)

is chapter 13 bed for your credit?

Answer
Yes.  As far as mortgages go, if you want a Fannie Mae loan, you will have to wait two years after discharge (5 years for a Chapter 7).  For FHA loans, you can get a loan while in a 13 as long as you have been paying for a year and have been paying on time.Depending on how the creditors report, the damage from a bankruptcy can condinue to drag down your credit for years after filing.  They are getting better at it, but it's not perfect.I hope this helps.
February 05 2009
(1)

Is there refinace help for home owners that are in trouble?

Answer
I answered your other similar question, but since you are telling us you are not making the Chapter 13 payments on time, FHA probably will not work.There is the FHA Hope for Homeowners program, but that hasn't had any success yet - it seems the government is still trying to make it work.I am not sure on the rules for a 13, but perhaps you can go back to the trustee and try to get lower payments.  You may want to discuss your options with the bankruptcy attorney that you filed your 13 with.
February 05 2009
(0)

in a loan modification can you aply for a fixed rate how low can you get the interest

Best Answer
Tough to answer as every scenario and every bank is different.  Perhaps other lenders/users can share thier success, and which bank they were with to give you a good idea of what's possible - or if you let us know which bank you are working with you can get more specific responses.
February 05 2009
(0)

Are there any lenders for a refinance when the homeowner is in Chp 13?

Answer
FHA is your choice, it requires that you have paid on your 13 (in a timely fashion) for at least one year.  Of course, the payments must have been on time, and there typically cannot be other lates since going into the 13.With FNMA looking at two years after discharge (five years for a Chapter 7), FHA is probably your best bet.
February 05 2009
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Should you ever have to pay for a loan modification. If so, approx. how much should be charged?

Answer
Actually, fees can be charged up front by either attorneys or Real Estate professionals - depending on what forms they use and if the agreements are approved by DRE.Bottom line, however, is I agree with everyone here.  You can do it yourself - but it can be frustrating.  If you choose to hire an attorney, choose carefully.  There ARE a lot of ambulance chasers out there who do very little and charge quite a lot.Good luck with your home :)
February 04 2009
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