It is a great news for the home buyers that the FHA will increase the FHA loan limits nationwide and in high cost areas. The current FHA loan limit for all the states except

“On Tuesday, September 18, 2007, the

 H.R. 1852 modernizes the FHA mortgage insurance program, once again providing American homeowners with safe, affordable mortgage alternatives. Without reform, FHA would remain unavailable to many homebuyers or those needing to refinance. FHA products are safe, thanks to appropriate underwriting and loss-mitigation programs, and fairly priced without resorting to teaser rates or negative amortization.   The bill would 1) increase the FHA loan limits nationwide and in high cost areas; 2) eliminate the three percent down payment requirement on FHA loans for first time homebuyers; 3) extend the loan term to 40 years; 4) allow FHA to risk-base price their products; 5) eliminate the cap on the number of reverse mortgages that FHA can insure; and 6) streamline usage of the FHA condominium loan program. It would also allow excess FHA funds to be put into an affordable housing fund, rather than go to the

Source from SILVAR Bullet Sept 21, 2007

Comment posted by Federal Housing Administration Loans
at 4/16/2008 6:10:24 AM

anybody here know of a good site to find more info on Federal Housing Administration Loans? I’ve got this site bookmarked and im gonna keep checking it out, but i still would like to find a site that covers Federal Housing Administration Loans a little more thoroughly..thanks

Comment posted by Daniel
at 11/22/2007 3:17:48 PM

I couldn’t understand some parts of this article PASSES FHA REFORM BILL WITH LOAN LIMIT HIKE at gracekeng.com, but I guess I just need to check some more resources regarding this, because it sounds interesting.

From the news of SILVAR Bullet of Sept 21,2007 the California Association of REALTORS® President, RE/MAX Managing partner of RE/MAX Vally Properties  Colleen Badagliacco spoke  to SILVAR members at September 17  Menlo Park/Atherton District Meeting. She encourged the realtors to  improve their skills and become more astute with new technology and the Internet, upon which Generation X and Y rely. She said Realtors would do well by establishing interactive Web sites, utilizing online transaction management, PDAs and other up-to-date technological equipment.

I am so in tune with her ideas to improve my technological skills. She said:

“Bad news gets eyeballs. … It’s turned out to be a media cycle drama and Realtors just have to have a conversation with consumers and bring the numbers and information to them,” Badagliacco said. While there are areas in the state that are experiencing a downturn in home sales, Badagliacco said Northern California, particularly Silicon Valley, is actually leading California’s housing market. Only a relatively small portion of

If you don’t know what to add in your home? According the Money Magazine Sept issue that adding a master bathroom will be A big payoff from the tiniest room.   ”Adding a new bathroom will enhance your quality of life - and the value of your property - like few other home improvement projects will. Put in a master bath, and you won’t have to take turns with the kids every morning. Install a powder room, and dinner guests won’t have to traipse through your private terrain. While you can’t count on recouping the cost of any upgrade right away in today’s weak housing market, over the long term adding a bathroom can boost your home’s value by some 20 percent, says Paul Emrath, an economist at the National Association of Home Builders.”

San Jose City Hall from city of San Jose

From the article - Double-digit home price drops coming by Les Christie of CNNMoney.com September 19 2007

“Six of the nation’s 10 biggest cities face price declines of 1 percent or more with Phoenix, at a 17.8 percent loss, undergoing the worst reversal. The San Diego area will suffer through a 10.9 percent fall, Los Angeles (down 10.6 percent), New York, (down 5.3 percent), San Jose, (down 4.4 percent) and Philadelphia (down 3.1 percent) will also fall.” 

The last 3 years San Jose Single Family home  median price has gone up from 630K to 788K. It is 25% growth even if dropped 4.4 %, so what? 

Home before the flip

Home after the flip 

Both TV shows “Flip This House” and “Flip That House” all have very solid rating. Are they real? Is it happened in Silicon Valley? Yes! It did and many time.

For example: A single family home at Arlington Av. in West San Jose with

1360 sf and 6970 lot was sold 9/12/06 for $880K . After it was remodeled and extended to 2415 sf asking 1.2888 M and sold for $1.43 Millions in 8 days on May/19/2007.

What is the flipper’s profit? I don’t know exactly but it is alot.

It takes timing, luck and guts.

法拍屋配稿二

星島日報記者施秋羽布雷斯本報道

隨著法拍屋供給增加，目前詢問度水漲船高，網站、專著紛紛出籠，但專家們也提醒民眾，加州的好法拍屋並不多，事前做好功課，耐心以對是不二法門。除此之外有些陷阱也不得不小心。

RE/MAX資深地產經紀耿竹萍(Grace Keng)建議民眾，在尋找法拍屋的時候，可以將目標買價格設定在市場價格的65%。她表示。「想買法拍屋無非是想省錢，並且創造一些利潤，但法拍屋免不了要進行一些修繕更新，假如以市場價格的65%來買屋，可以為日後預留一些賺錢的空間。」。 

美亞輔鄰社的房屋發展部經理鄭柏健提醒買屋人，要特別注意房屋契約上所載明的產權項目，「有些不肖的拍賣公司，利用亞裔新移民的語言障礙圖利，曾經見過有人花了20萬買到價值50萬元的房子，以為很便宜，但事實上買到的屋子有部分產權未清，比如說欠稅或是房子上還有欠其他銀行的貸款、修繕費用等等，後續還要花上一大筆錢補足，搞了半天一間房子買下來比市價還貴。」

對此耿竹萍表示，房屋產權項目的資訊民眾都可以到縣書記官紀錄辦公室 (County’s Recorder Office)查詢產權紀錄，畢竟欠多少貸款. 為避免吃虧上當，這個步驟可不能省略了

www.RealtyTrac.com網站的合作地產經紀Mariella表示，有時法拍屋購買者會成為原屋主與銀行衝突下的代罪羔羊，「這些原本的屋主被趕出家門，房子被收走便宜賣，自然心裡是一肚子氣，有的較為偏激的就破壞屋子、把地毯拿走，甚至更過分的還有人往馬桶裡灌水泥，讓新任屋主或銀行得花上好大一筆錢來重新裝設污水系統。買屋前一定得先進行房屋的勘察。」

星島日報記者施秋羽布雷斯本報道面對各式各樣的法拍屋買屋管道，民眾難免有些「既期待又怕受傷害」的感覺，又想撿便宜，但是又擔心受騙上當。建議民眾不妨可以透過如房屋與都市發展部(HUD, Department of Housing and Urban Development) 之類的公家機關來購買，與一般私人企業相比，此類機關提供買屋人更為透明的資訊與更完整的制度。 

HUD是主管法拍屋業務的政府組織。HUD與聯邦房屋局 (FHA, Federal Housing Administration) 合作，聯邦房屋局提供貸款保險，一但債務人發生無法付出貸款的情形，投保的債權人可以向FHA登錄清債，接著FHA會將房屋產權轉給HUD銷售。 

跟HUD買法拍屋的好處除了價格較便宜以外，也比較不會遇到產權不清的情況。一般民眾不能直接與HUD交涉，需要透過HUD認證的地產經紀代其下標，全國各地受核可的經紀資訊在HUD的網站上都有提供。 

民眾在對HUD法拍屋下標前，可以請專人先進行房屋狀態評估，依據結構、建材、耐用年數、折舊、地段以及是否有須修繕之處，來綜合出下標價。接下來的步驟則與一般法拍屋買賣相仿，在一定的時間內付清款項。房屋與都市發展部網站：www.hud.gov 

HUD 網站內明確解釋如何購買HUD 房屋。現在以下加利福利FRESNO ,LAKE, SACRAMENTO ,STANISLAUS 縣有HUD房屋出售。 

法拍屋

星島日報記者施秋羽布雷斯本報道

受次級房貸風暴影響，灣區阿拉美達縣以及帝利市的法拍屋如雨後春筍般滋長。連帶著很多打著提供法拍屋列表的網站，點閱率也節節高升，位於聖里安德魯兩房一廳的房屋，標價不到30萬元，讓人不心動都難，書店的架上也冒出了不少專攻法拍屋的新書。法拍屋似乎是撿便宜的絕佳途徑，但購買法拍屋的管道與程序繁瑣，一般民眾在買屋前，可得先做好功課了。

根據RE/MAX資深地產經紀耿竹萍(Grace Keng) 提供的DataQuick July24 2007數據顯示，灣區2007年第二季收到違約通知 (Notice of default) 的房屋戶數目前7696戶，比去年同期的2910戶成長了164.5%。

三藩市美亞輔鄰社的房屋發展部經理鄭柏健表示，「釋出法拍屋的屋主主要以拉丁裔與白裔為主，傳統上華人對自己辛苦供的房屋不會輕易放手，因此灣區法拍屋屋主華人所佔比率不到2%。次貸風暴引起的法拍屋效應在灣區阿拉美達縣與帝利市最為明顯，而三藩市的房價因居高不下，所以法拍屋的數目很少，也許一個月才兩三戶房子要法拍。」鄭柏健坦言，買法拍屋的確可以找到比較便宜的價錢，但也沒有如網站上面所寫的便宜到50%這麼誇張。

廣義的法拍屋(foreclosure)指是拖欠房貸款項，因而被債權人收回轉賣的物業。在美國法拍屋常常不是透過法院來拍賣，銀行、公家單位、地產公司、貸款公司、拍賣公司，都可能處理法拍屋業務的單位。 

法拍屋通常有兩種情況，一種是欠稅法拍屋，主要因為拖欠土地、房屋稅款而遭法院拍賣，拍賣資訊會在地方政府的網站或公布欄公佈。而次貸風暴直接影響的，則是欠銀行貸法拍屋，屋主因為付不出房貸，房屋面臨被轉賣的命運。

一般民眾要購買法拍屋，有幾個主要管道：

地方的警長(Sheriff)辦公室主持法庭交付的拍賣業務，通常只站監督輔導的角度，真正的拍賣還是委託民間公司辦理，拍賣的資產複雜，商用建築、停車場、民宅，都是可能的拍賣項目。

拍賣會，大大小小的拍賣公司或物業公司針對不同的物產分類進行拍賣，法拍屋的產權項目與狀態都是民眾要事先注意的。拍賣會的節奏與程序非常的快速，一般非地產專業的民眾要參加可能會碰了一鼻子灰，最好是事先已經知道拍賣會上哪一棟房子是自己的目標，再來下手。

專業地產經紀，有專門負責拍賣屋的地產經紀，這些地產經紀或追逐拍賣通知尋找便宜的法拍屋，或代表買屋人參與拍賣會。負責拍賣屋業務的華裔地產經紀目前較少。

法拍屋網站，提供法拍屋資訊網站以會員制管理，會員一年約需付出600元左右來取得進一步的資訊。民眾使用法拍屋網站，主要是相信藉由網路的無遠弗屆，可以得到更多資訊，一方面也是存著「避開中間人」的心態，以節省層層附加下的成本，但事實上，大部分的法拍屋網站，在某種程度上也是仲介網站，列表的拍賣屋背後事實上都有地產經紀在處理。

政府機關如房屋與都市發展部 (HUD, Department of Housing and Urban Development)、退伍軍人局 (Veteran Administration, VA)、聯邦國家房貸協會 (Federal National Mortgage Association, 簡稱Fannie Mae)、聯邦住宅放款抵押貸款公司 (Federal Home Loan Mortgage Corporation ; 簡稱Freddie Mac)都會有房屋拍賣，其中HUD的房屋以1到4單位的民宅為主。一般民眾要與此類機關交涉買屋，通常需要透過該單位認證的地產經紀來下標，如果成交，部份機構如HUD也會支付地產經紀佣金。

法拍資訊除了可以透過上述的管道獲得，也可以多注意地方報紙的分類廣告欄的法拍屋資訊。更積極的買屋人，也可以注意離婚啟事、訃聞等消息，因為此類事件也常將房屋送入市場求售。

不管透過何種管道找到理想的法拍屋，對於買屋人來說資金調度可能說是一大麻煩，因為法拍屋在理論上是以現金交易的。一般的房地產買賣，可以用買賣的房屋向銀行抵押借貸，但是法拍屋就是因為在貸款上出了問題，債權人要的就是變賣房屋求現來解決爛帳，因此不可能先過戶到買屋人名下，再來貸款慢慢還清。

當法拍屋得標之後，必須先下訂金，之後在法拍單位規定的期限下要全額付清，這段時間通常很短，最短可以短至14天。由於短時間內就需要結清款項，因此事前先確定有現金來源就顯得格外重要，目前部份銀行提供代墊服務，先替買屋人付款，等到房屋過戶後，再轉成一般房貸處理，但切記事先取得銀行的貸款核准，免得好不容易等到的房子，卻因為付錢付慢而給飛了。 短時間內要籌措大量現金，但偏偏又不是每個人都有良好信用，銀行的效率也不一定可以跟上買屋進度，所以透過短期融資(hard money) 借貸，是常見手法，這樣的借貸方式可想而知，利率比起一般貸款要高得很多，最高可以到29%。由於次貸風暴的源起即是不良信用借貸，因此在追求好價錢的同時，買屋人也必須多注意自己的財務規劃，量力而為。 

另外與法拍屋相似的選項還有銀行或是貸款公司未拍賣成功房屋，此類銀行稱為銀行擁有屋REO (Real Estate Own)，銀行擁有屋的資訊通常不易讓一般的買屋人取得，通常銀行會委託房地產經紀人處理。銀行擁有屋通常銀行虧錢廉售（short sale），因為原屋主常已拖欠5個月以上的貸款，銀行需要錢不需要房屋，銀行將房屋以低於未還貸款的金額賣掉，房地產經紀人可以幫助你尋找這種廉售房屋。

耿竹萍表示，由於銀行是廉售交易的最後決定者，礙於銀行運作等結構性問題，廉售交易曠日費時，拖上數個月並不稀奇，有時銀行還會出爾反爾，因此買屋人可得多用上一點耐心了。 

There are winners and losers of the subprime mortgage.   The loss of two  Bear Stearns  hedge funds  became symbols of the turmoil of the sub prime mortgage.  The other losers are United Capital Markets  a fund that specializes in buying and selling bonds that are backed by adjustable rate subprime mortgages. John Devaney, the CEO of this fund has put his 142-foot yacht “Positive Carry” for sale of $23.5 million. The  subprime mortgage originator - New Century Financial has to shut down and seek bankrupt protection.There are two winners who did the exactly opposite to the winners. They bet the subprime mortgage will have problems. “But the biggest winner has been Paulson & Co.’s fund that shorts subprime investments. The fund has soared 129% since the beginning of the year.” from Larry Ramer of  Theflyonthewall.com. Another hedge fund Scion Capital,  in Cupertino, Calif., “which made some aggressive short bets and looked to be a huge loser until the market imploded just as investors were getting antsy:”  from Some hedge funds hit by subprime meltdown http://www.fiercefinance.com

The difficulties with the subprime lending market have expanded the lending and credit crisis in the greater financial markets, even outside the

United States.  Hundreds of thousands of borrowers have been forced to default and several major subprime lenders have filed for bankruptcy.

From Wikipedia, the free online encyclopedia:  Subprime lending, also called B-paper, near-prime, or second chance lending, is the practice of making loans to borrowers who do not qualify for the best market interest rates because of their deficient credit history. The term also refers to paper taken on property that cannot be sold on the primary market, including loans on certain types of investment properties and certain types of self-employed individuals. Subprime lending is risky for both lenders and borrowers due to the combination of high interest rates, poor credit history, and murky financial situations often associated with subprime applicants. A subprime loan is offered at a rate higher than A-paper loans due to the increased risk.

What does this mean for the average home buyer or seller in Silicon Valley?  Stay tuned for more details…