A Success Story: Teacher, Susan Naber

From: Susan Naber, Magnolia Ave. Elementary

December 4, 2007

To Whom It May Concern:

Last year, I attended a LATMAP informational session expecting to get some ideas and information. I left there realizing that being a homeowner was actually a reality for me. Thanks to all the speakers that were available, I learned about so many different programs that existed to help people like me, yet I had never heard of them before that afternoon. One of the fabulous people I met at that meeting was Iris Land. Her knowledge and friendly personality stuck in my head and I knew she was the one I would want to communicate with when I was ready. And the rebate Prudential was offering wasn’t so bad either!

Iris was readily available and very helpful as soon as I called her. She recommended Joseph Guzman with National City Mortgage for my lender and set me up with Jerry Bliss for a realtor. Joseph took my information over the phone almost immediately, and Jerry called me soon after. I was referred to the Homebuyer Education Workshop offered through CFRC, a requirement for the loans I was receiving, where I got tons more information. The class was great in getting me familiar with the different opportunities I would have and what to expect during the home buying process.

"I can’t say that my whole home buying experience was rosy."

Joseph told me what I had to do to get the home I wanted (pay off a few things, defer a few things), and I was ready to do it all. He was very knowledgeable about the first time homebuyer programs, and combined programs from the City of L.A. and the Extra Credit Teacher Program to get me preapproved for just enough to get a great condo. Once I knew where I stood, Jerry was available to begin looking with me. He was so flexible with his time and I never had a problem scheduling times to see places with him, even when my own schedule was crazy.

I can’t say that my whole home buying experience was rosy. A few months into looking, I got an unexpected phone call from Joseph. The funds from the City of L.A. were depleted. I was going to be put on a waiting list. It could take months, Joseph told me. There was no way to know. In addition, he informed me that when funds do become available again, we would only have 30 days to use them. After that, I would be bumped back down to the bottom of the waiting list. Although I was upset, Jerry continued to be supportive, keeping me in the loop about new listings the whole time. It took two months until I got that call from Joseph. He told me it was my turn again, but I only had 30 days to use the funds. I called Jerry…I told him it was urgent, I needed to not only find the place, but have an accepted offer within 30 days. Jerry was on top of it. He was immediately available for me, scheduling viewings right away. Thanks to him, we found the place I wanted, negotiated a deal, and had an accepted offer within our time limit.

"I would not have been able to be a homeowner

without the help of these programs

and more importantly, the people that make it happen."

The escrow process was the most stressful experience I have ever had. Because of complications with LAUSD, my last several paychecks had been inaccurate and caused confusion as to how much I make. The numbers were inconsistent, and it was difficult for the city to figure out. They required tons of supporting documentation to verify that I didn’t surpass their income limits, and it took much longer than expected. Thank goodness that our selling realtor was patient, because we went so far past our loan contingency removal period, anyone else would have pulled out. There were several days, weeks even, when I did not know if we were going to make it. Everyone was getting nervous. In the end, although we were late, we were able to finally close escrow.

I have to say that I don’t think I would have made it through this process and kept my sanity without Jerry’s support. He fought for me the whole time. He was a mediator, and somehow kept our selling agent at bay. He was consistently optimistic about the situation, and his patience was unyielding. He was relentless in getting answers when I needed them, and constantly kept me informed of what was going on. He was so available for me that I felt like I was his only client. I will forever keep Jerry as a realtor and refer him to everyone I know! I thank Iris for making such a great connection, for being so helpful and available to me when I needed, and for going so far as to come to my new condo to deliver my much needed rebate check to me. I can see that customer service with the both of them is a priority, and in such a stressful process, it really is so important.

I appreciate my experience with LATMAP and am spreading the knowledge that I have learned about all these great programs to others. I would not have been able to be a homeowner without the help of these programs and more importantly, the people that make it happen.

Thank you,

Susan Naber

News Wire: City of LA Program - Fully Expended

City of LA's Homeownership Programs have fully Expended funds

We just got word directly from the LAHD (Los Angeles Housing Department) that the low and moderate income funds for the City of LA purchase assistance programs have been fully expended and/or reserved.

As you may or may not know, LAHD receives new low income funds every April/May of each year. Lenders may still place buyers on the Waist List, however, pending the arrival of new program funds.

The Homeownership Unit has also requested additional low and moderate income funds; we will advise will let you know when those funds become available.

On the upside, there is a high likelihood that the City may receive approximately $2.5 million of moderate income funds in approximately 1-2 months.

This isn't bad news for new buyers who haven't started the homebuying process. Although, this will definately affect those who are in the process and are in escrow, with part of their planned financing coming from the City.

If you are in this situation, contact your lender and see how this will affect you. If you have already negotiated a purchase transaction, ask you r lender to submit a PRIORITY Reservation Request form ASAP.

FREE Homeownership Preservation Seminar

Homeownership Preservation Seminar

Before you purchase your first home, attend this seminar and learn about

• Predator Lending


• Foreclosure Prevention


• Home Maintenance


• Guest Speaker


• And much, much more!
  

Buying a home is the most important purchase you will make.


When: 9am – 1:30pm Saturday, December 15th
Fee: FREE!
Time: 9:00am-1:30pm
Location: 4060 S. Figueroa St. (Major Cross Street: Martin Luther King Blvd)
Los Angeles, CA 90037

* Free parking in the back of the building *
** Continental Breakfast and Lunch will be provided **


Space is limited so don’t miss this opportunity.
Call Veronica Lopez at (323) 233-1900 Ext. 224 for a reservation.

New Homebuyer FYI #1

compiled by Hassan Nicholás
FYI #1...random stuff to know

• Mortgage payments made on time will shoot up a credit score. Usually, it's easy for a credit score to drop but it takes more time to raise it up.

• When reviewing your credit report for creditworthiness, lenders prefer borrowers who have three (3) to five (5) open credit lines/accounts.

• When you have a debt with less than 8 payments left on your credit report the lender will ignore it.

• Homeowners should refinance only when: 1.) They have gained significant equity in the home. 2.) The interest rate can be lowered by at least 2 points (fees and costs associated with refinancing are too costly for a one point interest rate drop). 3.) They want to get out of an ARM.

What You Need to Know About Credit

Why is Good Credit Important?

The difference between a 700 FICO score and 698 is one-half percentage point. Meaning, on a $165,000 30-year fixed rate mortgage, that half point could cost you more than $19,000 in interest charges, assuming 6 percent is the lowest rate available.

Having good credit and strong FICO score makes all the difference between getting a good deal or bad one - or even none at all. Here are some facts that you should be aware of:

• A typical credit card purchase ends up costing 112 percent more than if cash were used.


• Your debt payments are reported to creditors once a month. While you might be able to get away with being 30 days late with some lenders, all lenders will turn their heads if you're 60 or more days late.


• Lenders typically don't want to see no more than 3 - 4 open credit cards. If you must, then close the most recent card(s) first. But always pay off your outstanding debt before closing.


• Before you apply for a mortgage be sure you're not spending over 30% of the maximum balance on your credit card(s). To figure this out, simply multiply your maximum limit by 0.3. That will be the number you shouldn't go over. Example: Discovery card has a maximum limit of $3,000. You have a current balance of $1,500. You should not spend over $900 (3,000 x 0.3).


• It is possible to improve your credit score by 20 points in 60 days.


• Any time you apply for a mortgage or car loan a tri-merged credit report is pulled. This has a negative impact on your FICO score, which is why you should keep your loan shopping condensed to five days if you know you will be applying more than once, rather then spread throughout the month. This way you will only get "hit" once, instead of for each time you your credit was pulled.

• Just because negative information no longer shows up on your credit report after 7 - 10 years, that doesn't mean it isn't affecting your score. Don't try to "wait out" your debt.

• To be eligible for government-backed subsidy programs (downpayment assistance), you must have a FICO score of at least 620.
  
  

A Success Story: The Gutierrez Family

August 25, 2005

Maritza Gutierrez is a mother of three and works for the Los Angeles County Consumer Protection Department as an investigator. Maritza and her husband Joseph came across CFRC’s IDEA program in partnership with FHLBSF (Federal Home Loan Bank of San Francisco) and CB&T (California Bank & Trust). Maritza enrolled in August 2004 and began saving by making monthly deposits of $500.

Maritza and her husband also attended a series of financial education classes, homeownership workshop and saver club classes to learn about the nuts and bolts of the homeownership process. Maritza and Joseph put what they have learned in their financial education classes into practice and asked their children to do the same. Each family member had a budget and each learned to bargain shop. Maritza and Joseph also prepared a list of items that they should look for in a house and made sure all of their documentations were in place.

They found a property in the East Los Angeles area that needed rehabilitation, but they found much potential in the property and knew that they could work on the rehabilitation on their own to save money. With the IDEA match money of $14,400 and other saving programs that they have enrolled in, Maritza and Joseph purchased the property for $289,000. Maritza and Joseph received funds from the Los Angeles Community Development Commission Home Ownership Program and American Dream Down payment Initiative and IDA program with New Economics for Women.

After the family moved in and started the rehabilitation process, the neighbors also began to upgrade their homes to raise the values of the community. The property still has much work to be done, but Maritza and her family are excited about working on their home together and seeing the transformation of their house and neighborhood.

A Success Story: Teacher, Amy Bouse

November 29, 2006


Amy Bouse has been a teacher for the past 8 years at Santa Monica High School. As she researched various homeownership assistance programs for teachers on the Internet, she stumbled upon the Los Angeles Teachers Mortgage Assistance Program (LATMAP).

Ms. Bouse decided to attend CFRC’s 8-hour homebuyer’s seminar on a Saturday, where she learned about various loan programs available to her and about the pre-approval process. "This was my second and much better homebuyer’s seminar…I learned about expectations for real estate agents and a great rebate program for teachers," said Ms. Bouse.

Through LATMAP she also met two program partners: Joseph Guzman from National City Mortgage, and Iris Land from Prudential CA Realty. The partners helped Ms. Bouse through every step of the homeownership process, including qualifying her for a loan and helping her find a home.

Ms. Bouse recently closed on her purchase, a 2 bedroom condominium located in Southwest Los Angeles. The home has great amenities and charm, including hardwood floors, and built in cabinets. But her favorite place is the terrific backyard that offers the privacy, serenity, peace and escape that she longs for at the end of her day.

Finalmente Justo

Una Organización Comunitaria responde a Prestamistas Predatorios

October, 2007

Considerando la reciente onda de juicios hipotecarios que le han hecho perder tanta gente su casa a lo largo de California y la nación entera, no es una sopresa que muchas compradores de casa potenciales han echado un paso para atrás.

Y el hecho de que mayormente latinos y afroamericanos engrosan la lista de víctimas afectadas por hipotecas de alto riesgo solamente fortalece aquel temor. Vea en las noticias y le saldrán tantas historias de familias, recien dueños de su propia casa, perdiendo su hogar, su inversión, y su sueño de regalar una casa a sus niños. Es bastante para desalentar a compradores potenciales y los que ya tengan hipotecas infavorables.

El problema reside en la realidad que no hay protección para las personas, de mal crédito y poco ahorros y aún más poco opciones, a quien se tentan con una tasa baja a aceptar préstamos hipotecarios de alto riesgo. Los prestamistas predatorios lo saben y por eso se aprovechan de ésa vulnerabilidad que tienen muchos con esperanzas de tener una casa. Luego compradores de casa se encuentran en situaciones dificiles una vez la hipoteca riga una tasa más alta, entonces se hacen inmanejables los pagamientos de préstamo. Toma en cuenta que los prestamistas se muestran una vez más y más renuentes a ortorgar hipotecas y comprenderá las dificultades que se enfrenta.

Ahi entra el Centro Comunitario para Recursos Financieros (CFRC en siglas ingles) una organización sin fines de lucro que provee seguras alternativas para financiar casas. Con sede en el centro de Los Angeles, CFRC haya sido un centro de recursos financieros para muchas familias y negocios de comunidades descuidadas los angelenas. Nota que los precios para prestamos están en alza aunque hay una sobreoferta de viviendas – otra amenanza a compradores prospectivos.

"la educación es clave"

A lo largo de la nación organizaciones como CFRC han empezado a responder; ofreciendo soluciones convenientes a personas con opciones escasas. Bajo su Programa para Nuevas Compradores de Casa CFRC ofrece dos nuevos productos hipotecarios que se esperan ser el primer fase bajo el programa. Los préstamos son únicos porque están específicamente dirigidos para personas con crédito dañado y pocos fondos. Después del cierre del préstamo el comprador tiene que pasar por educación con un consejero financiero sobre las condiciones del préstamo. La organización espera atraer familias y individuos con tasas fijas competitivas de interés también la seguridad de una organización que está en el negocio de cuidar a los comunidades descuidadas. CFRC quiere que nadie se quede en cero porque encuanto a los prestamistas predatorios la educación es clave.

Por Hassan Nicholás