Real Estate and Real Life in the Wine Country

For all of us in Sonoma County the name Clem Carinalli is a familiar name. Once a name of trust and reliability, now a name connected to scandal and swindle. This morning’s Pressdemocrat has an interesting article about the shock of the investors.

Interestingly, halfway in the articles, several investors did admit that they also have themselves to blame by not doing their due diligence as to the investments they were making.

Due diligence… related to Real Estate, many times used in the CAR purchase agreement we generally use and the disclosures being given to sellers and buyers.

It used to be ‘buyers beware’ and sellers/agents were not statutary obligated to disclose anything they know about a property and affects the desirability of a property. However… always and I mean always read your disclosures, if you don’t understand what you are reading, talk to your Realtor, Mortgage broker, Home Inspector, Pest Inspector, Escrow officer etc etc. Not only do you have the right to do so, you also owe it to yourself to do so. These professionals are there to help you. Sometimes they might ‘assume’ that you understand every document you sign and read, please don’t hesitate to ask, the only ‘dumb’  question is a question not asked.

For myself, I have included a copy of the purchase agreement as wel as some general disclosure documents in a Buyers Guide I put together for my buyer clients. Quite frankly I hope they take the time to read it and mark the items they don’t understand. I love working with people who like to educate themselves as to what they are doing.

   It is a beautiful autumn day in Sonoma County, enjoy it.

Mirjam

Just wanted to share this information… great info for buyers!

Fannie Mae and Freddie Mac are offering financing incentives for buyers of foreclosed homes owned by Fannie and Freddie.  Home buyers have until Oct. 30 to apply for Freddie Mac’s SmartBuy program, which started in July, and offers up to 3.5 percent of a home’s sale price to help cover closing costs.

To qualify, the home must be a principal residence and must be selected from Freddie Mac’s HomeSteps Web site (www.homesteps.com/homeshoppers.htm) for its foreclosed properties. Loans must close by year’s end.  The HomeSteps properties also include two-year warranties on major appliances and electrical, plumbing, and air-conditioning and heating systems.

Fannie Mae’s HomePath program (www.homepath.com) is an ongoing program and offers more incentives than Freddie Mac’s.  Through participating lenders, Fannie will offer mortgages to buyers who make a down payment of 3 percent.  The buyers do not have to secure private mortgage insurance, a common practice with nearly all lenders.  Home buyers also can negotiate for Fannie Mae to offer closing-cost assistance.  Unlike Freddie Mac’s program, Fannie’s assistance level is not capped.  Under the HomePath program, the average participating homeowner has received payments equivalent to 3.75 percent of the loan’s value.

The homepath program is also a good option for investors to consider.No matter what the media tells us, today is a great time to buy property in Sonoma County!