Check out this link for information on a loan program for first-time buyers in Santa Clara. It's based on funds availability, so if you are looking to purchase in Santa Clara and don't quite have 20% down, you might check and see if this is still an available program.

Are they really helping the buyers? July 30 new regulations are affecting buyers now…who went into contract thinking that a 17-day financing contingency would be plenty of time. Now there are hold periods in effect due to Reg Z, and lender has to review signed seller disclosures before the loan process can move forward, including ordering the appraisal. That's the summary. So one week into the contract, the lender may not yet be able to order the appraisal due to the disclosure review period.

What if the appraiser brings the file in under sale price? There's an appeal board. How does this affect the buyer? Say the appraisal comes in $35K under the sale price due to an appraiser unfamiliar with the area…..or comps that are all trashed REOs…..real estate agents and loan officers can't go to bat for their clients and provide supporting data to help the appraiser.

So the laws to help "guide" the loan process keep the honest people honest, but it seems like they're going to put unnecessary burden on buyers and sellers alike. Thirty-day escrows may be a thing of the past.

Click here for some details about July 30 regs.

It appears lenders are implementing a new policy that will affect "flipped" homes. While there is money to be made fixing up REOs and reselling them, there may be less money made if you can't sell them immediately. Why? The income of house flipping is typically based on speed. The faster you can flip it and unload it, the more you profit.

So enter the latest fly in the ointment: lenders are beginning to refuse to loan on a property that hasn't been off the market for six months.

As it is, most REOs aren't in the best condition, so often the purchase is made with cash. And now that the house is rehabbed and will qualify for a loan…..well….HUMMM.

Buyers, do some research on your prospective purchase first and check with your lender on their policies!

Stories about families losing their homes to foreclosure due to illness, job change, and other sudden factors are now the norm, unfortunately. They miss a payment or can't make full payments, are turned down for a "loan remodification," and foreclosure appears to be the only option. I encourage all our readers if they are facing this possibility, talk to an experienced real estate agent before you get too deep in the foreclosure process!

There are alternatives–maybe not the ones you'd choose–but you can avoid foreclosure and the bankruptcy/debt associated with it by selling the home. If you have the ability to catch up and pay off the past due on the loan, and stay in the house, that's the simplest solution. But if you can't pay off the debt when it's due to avoid the foreclosure, paying partial payments is unlikely to stall the process.

A sale or short sale is an unfortunate option, but likely best for the struggling owners. It often comes with "debt forgiveness" so you can avoid bankruptcy.

There's a lot to say about this topc, but the most important thing I wanted to stress is to call an experienced real estate agent and discuss your options. Banks may seem flexible, if you call, but the legal terms of your note are going to prevail. Don't wait until you have 30 days to be out of the house before taking action. Some agents specialize in short sales and they can be very helpful in discussing your options. Often if the bank has an offer on your property in hand, they will delay the foreclosure process.

Say your lender will allow up to $12,000 credit for non-recurring closing costs. So, to get the edge on a foreclosure property that you really like, you bump up the offer price accordingly and ask for the full $12,000 NRCC credit.

First of all, the offer price is only the offer price — the bank will look at all the terms and a $412,000 offer with $12,000K NRCC is still a $400,000 offer.

Secondly — aka the second problem — the home has to appraise. In some markets, that 3% difference is enough to cause a problem with the appraisal and make it necessary to adjust some numbers. That's one thing if you have that $12,000 in your pocket to bring in, but if you can't afford the down payment and closing costs combined, then you've shot yourself in the foot.