Use 401k to Buy a Foreclosure?

by | Apr 19, 2011 | Foreclosures/REOs, Ideas/Solutions, Thinking of Buying? | 26 comments

From HW:

A bill introduced in the U.S. House of Representatives would waive early distribution penalties on certain qualified retirement plans if the funds are used to buy a house that has been in foreclosure for a year or more.

Bill Posey (R-Fla.) introduced H.R. 1526 — the Housing Recovery Act of 2011. It has been referred to the Committee on Ways and Means.

“It’s not an end-all fix,” Press Secretary George Cecala said. “It’s just another idea to help the housing market.”

The idea is to add stability to neighborhoods by promoting purchases by owner-occupants or those seeking a second home rather than investors who immediately “flip” the home. Under the bill, the purchaser must agree to hold the property for at least two years to be exempt from early retirement plan distribution penalties.

The bill is expected to apply to distributions from Roth IRAs, 401(k) plans and company pension plans. It would require the person to use the retirement distribution within 120 days of receipt by buying a home that “has been in foreclosure for a year or more.”

Cecala said Posey, a Realtor, anticipates that the one-year period would begin at the point that the foreclosed property is listed for sale, but said the congressman is open to amending the bill to be more specific about when the clock would start ticking.

Several states have extremely drawn-out foreclosure processes. Foreclosures in judicial state average about 13 months from start to finish. But once foreclosures are repossessed by the lender and enter what is known as real estate-owned status, or REO, it is not uncommon for them to be snapped up once listed for sale.

In Posey’s home state, his district covers Florida’s “Space Coast” not far from Orlando area. He is owner and founder of Posey Realtors & Co. in Rockledge, near Cape Canaveral.

Housing Grants & Loans

by | Apr 18, 2011 | Local Government, Thinking of Buying? | 5 comments

It was mentioned that there are local grants available for homebuyers, and  ‘just some guy’ asked for more infomation.

From the City of Carlsbad’s website:

The City of Carlsbad administers both grant and loan programs.  This program offers down payment and closing cost assistance to low income households. 

The program provides zero interest “silent second” loans that must be repaid when the residential unit is sold.  There will be no monthly payments.  The assistance may be used to purchase attached or detached residential units within the city limits of the City of Carlsbad.  The home must represent the buyer’s primary place of residence.  The residential unit may not be used as income property.  The buyer is not permitted to rent the unit or any rooms within the unit to another party. 

The loan through the program shall be up to 5 percent of the fair market value, but not exceed $20,000.  To qualify for a loan under the program, the buyer must meet the stated income requirements and be able to qualify for a conventional mortgage to finance the remainder of the home purchase.  In addition, final monthly housing costs for the buyer may not exceed 35 percent of the gross monthly household income.  Other restrictions apply.

(more…)

Ron Paul, FSBO

by | Apr 18, 2011 | Thinking of Buying? | 8 comments

From NewsCore via curbed.com:

LAKE JACKSON, Texas — Never one to support intervention in something individuals can do themselves, Rep Ron Paul (R-Texas) on Thursday took to Facebook to sell his family home of 42 years.

Paul, whose training is in obstetrics and not real estate, began the marketing campaign for the Lake Jackson, Texas, home with a Facebook post that links to the website www.buyronpaulshouse.com.

“Carol and I are selling the house we lived in for over 40 years. If you or someone you know is moving to the Houston/Galveston/Lake Jackson area, they can get more information through this website,” the libertarian lawmaker wrote on the social networking site.

On the website, Paul says “generations of Liberty loving kids have grown up here” — including his son, Sen. Rand Paul (R-Ky.) — and for $325,000 “you can continue the tradition.”

“A great house and a great piece of history. Dr. Paul’s house is for sale in Lake Jackson, TX. The house has 4 bedrooms, 5 bathrooms, and is approximately 5,500 sq. ft in size.

There is a great in-ground swimming pool, great landscaping, 2 lofts, an office with built in shelving. The same home-office Dr. Paul used for 42 years,” the website continues.

Pictures on the website show the “great in-ground swimming pool” is equipped with a slide. The listing also boasts the residence is just 50 minutes from Houston and 10 minutes from the Gulf of Mexico’s Surfside Beach.

Paul, 75, who ran as a Libertarian presidential candidate in 1988 and as a Republican in the 2008 White House campaign, may still have his eye on that prime piece of Washington real estate in 2012.  He just set up a committee for a possible 2012 presidential bid, and has been travleing to Iowa and New Hampshire.

According to the Real Clear Politics average of recent national polls, Paul places sixth in a hypothetical field of Republican candidates.

With an average 6.6 percent support, he trails former Arkansas Gov. Mike Huckabee, former Massachusetts Gov. Mitt Romney, real estate mogul Donald Trump, former Alaska Gov. Sarah Palin and former House Speaker Newt Gingrich.

Del Mar Fairgrounds Update

by | Apr 17, 2011 | Local Flavor, Local Government | 14 comments

An excerpt from an article by our friend Will Carless at the voiceofsandiego.com:

It snarls up the traffic, clogs the parking, puts local police and firefighters on edge and fills the air with the fetid smell of, alternately, frying confectionery, sweaty rodeo riders and horse manure.

The Del Mar Fairgrounds is not the ideal neighbor for tony Del Mar. This small, neat community of multimillion-dollar homes and posh restaurants has always had a love-hate relationship with the fairgrounds. Residents love taking their grandchildren to the fair, but hate the descent of weapon-toting out-of-towners at the annual gun show. Restaurateurs and salespeople at fancy boutiques love the summer crowds brought by the fairgrounds, but prefer the racing clique to the fair-going hordes, who are less likely to buy expensive sirloins or designer cocktail dresses.

At first glance, it’s hard to understand why the city of Del Mar would want to purchase the fairgrounds: The proposed sale is a daunting financial deal for the county’s smallest city and it comes as even Del Mar is feeling the raw financial climate. And why, oh why, would the city want to buy an institution that its residents have so many problems with and dislike so much about?

The answer is simple: At the core of the city’s proposal is reformation.

Del Martians may not like everything about the fair now, but they certainly don’t want the site turning into a hotel ghetto or a convention center. They don’t like the current gun shows, or the traffic, or the impact on their emergency services, but these are exactly the problems that an owner — as opposed to a neighbor — has the chance to control.

 

For example, the plan to put a condo-hotel on the site would have a big impact on local traffic. But the agricultural association responded by shifting the responsibility for fixing the traffic problem to the city, Dernetz said. The association told the city it would have to build — and pay for — traffic signals at every intersection on Camino Del Mar, the main road through town, he said.

“Do you know how much that would cost?” Dernetz said. “That’s one example of the arrogance and insensitivity they have to the impact of their operations on this community.”

The group backing the deal — a curious hodgepodge of small-town politicians, environmentalists, business leaders and millionaire horse-owners — says the fairgrounds has been badly managed by a group of well-connected political donors appointed by the governor, who have spent the last few decades picking fights with just about every interest group, politician and gadfly in Del Mar.

For example, the plan to put a condo-hotel on the site would have a big impact on local traffic. But the agricultural association responded by shifting the responsibility for fixing the traffic problem to the city, Dernetz said. The association told the city it would have to build — and pay for — traffic signals at every intersection on Camino Del Mar, the main road through town, he said.

“Do you know how much that would cost?” Dernetz said. “That’s one example of the arrogance and insensitivity they have to the impact of their operations on this community.”

(more…)

Ritzy

by | Apr 17, 2011 | Market Conditions, Thinking of Buying?, Thinking of Selling? | 3 comments

Excerpts from Eric’s article at nctimes.com:

Last year, at age 37, electrician Fred Boyd and his wife ended years of renting in Orange County and bought their family a three-bedroom house in Oceanside about seven miles from the beach.

“Home values have come down, and the loan rates have been pretty reasonable,” he said. “And what you’re able to buy down here, compared to what you’d be able to buy up there, it’s in a lot nicer of an area.”

Boyd could hardly have picked a better time.

Mortgage payments —- the single most important factor for many homebuyers —- have fallen to historical lows in many neighborhoods, driven down by falling prices and the lowest interest rates in generations. Indeed, families can buy a house for less than it costs to rent one in some places.

(more…)

La Costa Oaks Wrap-Up

by | Apr 17, 2011 | Builders, North County Coastal, Thinking of Buying? | 3 comments

The final build-out of La Costa Oaks in SE Carlsbad is underway.

The Copperwood tract, which is up and over the ridge with some ocean views, enjoyed great success in the $800,000 to $1,200,000 range.

These two new tracts are on the backside of the same hill, where there is traffic noise from Rancho Santa Fe Rd., and influence from San Elijo Hills, giving more of a San Marcos feel to the area (though they’re in the Encinitas school district).

But price is everything – buying a new house in Carlsbad from the high-$600,000s that has Encinitas schools is a hot ticket.  Look at the crowds that came out yesterday for the grand openings:

If you are interested in having us to assist you, email jim@jimklinge.com. There is no charge, the builders pay us – but Richard or I will need to accompany you on your first visit.

What can we do for you on new construction? 1) There is heavy pressure to use the builders’ lender, we’ll help determine if you are getting a fair deal. 2) The upgrades are expensive; we’ll assist with identifying which are cost-effective. 3) We’ll have our professional inspector complete a thorough review of the property prior to closing to make sure they built it right.  4) We’ll keep giving you bubbleinfo along the way.

Pin It on Pinterest