Dallas Fort Worth Area Homes and Real Estate: Texas

HUD has continued to promote their HUD $100 down program for home buyers in the Dallas Fort Worth area.  The program is a great opportunity for home buyers to get into a HUD Home without having to pay the normal 3.5% down payment that is required for FHA loans.

HOW DOES THE HUD $100 DOWN PROGRAM WORK?

There are some specific guidelines that have to be followed:

• The buyer must obtain FHA financing in order to get the HUD $100 Down. 
• The buyer must intend to occupy the property.  HUD does not allow the $100 Down program for investors or for buyers that will not otherwise occupy the home.
• The buyer must submit a minimum bid for at least the list price.  Offers submitted below the list price do not qualify for the HUD $100 Down Program.
• Buyers may bid more than the appraised amount of the property, but must pay the difference between that and the offer price, plus the $100 in cash at closing.
• The program follows all of the other general requirements of purchasing a HUD Home. 
  

Home buyers interested in purchasing a HUD home should consider working with professionals that have prior experience with HUD Homes because of the complexity of the transactions.  HUD has very specific guidelines regarding their bidding process, the earnest money, home inspections, the closing process and situations where the property may need additional repairs.   

Buyers who are interested in bidding on a HUD Home and taking advantage of the HUD $100 Down program can contact me for a list of qualified HUD Homes in their area.  I have past experience with this program on the lending side and also as a full time Realtor(R).  Although I am no longer a licensed loan officer, I can help you find a lender that is experienced with HUD transactions.       

{ { { { { { { { { {  SOME F.A.Q. ABOUT BUYING A HUD HOME } } } } } } } } } }

WHAT IS A HUD HOME?

A HUD HOME is a foreclosure where the previous owner had an FHA loan and the lender negotiated with HUD to take over liquidation of the property.  It is essentially no different than any other foreclosure, except HUD allows certain incentives, such as the HUD $100 DOWN PROGRAM, since they are both the seller and the loan guarantor in cases where the buyer is obtaining FHA financing.

HOW MUCH ARE CLOSING COSTS WHEN BUYING A HUD HOME?

The closing costs vary depending on the type of loan the buyer obtains, the total origination charges a buyer chooses to pay relative to their interest rate, as well as other factors determined by how their loan is structured.  Other prepaid items, such as insurance and taxes, will affect a buyer's total out of pocket costs at closing.  Only a qualified loan officer can answer this question on an individual basis.  Contact me and I can put you in touch with a lender that's experienced with HUD homes. 

HOW LONG DOES IT TAKE TO CLOSE ON A HUD HOME?

HUD's contract automatically allows for up to 45 days from the time the contract is executed.  In my experience, buyers should expect closing to take up to this long in most cases.  HUD's closing agent typically requires documents as much as eight business days in advance of the closing date.  This alone means that closings will typically take at least two weeks longer than non-foreclosure transactions.  With all the new Federal rules in place that require waiting periods on loans, this can add up to several extra days. 

In the event a closing is delayed past the normal 45 day closing window, HUD may allow for an extension.

I'VE HEARD THAT ALL HUD HOMES ARE IN POOR CONDITION.  IS THIS TRUE?

Not at all, although some are definitely in various states of disrepair.  Unfortunately, some foreclosures are in this state because the previous owners could not afford to maintain the home.  And in some cases, home owners who knew their home was going to be foreclosed may have vandalized it or stripped the home of appliances and other loose items, such as ceiling fans and light fixtures, before they moved out.  The condition of the home, as is the case with most foreclosures, is often factored into the asking price.  In some cases, the discount on the sales price over current market value may be more than enough to cover needed repairs, improvements and upgrades and still leave the buyer with some equity.  Every situation is different, and the market value of homes in all areas is always a moving target. 

DOES HUD ALLOW FOR A HOME INSPECTION?

Yes.  HUD has a specific policy regarding home inspections for owner occupant purchasers.  In order to obtain an inspection, a buyer must request this in writing and have their agent submit to HUD's asset  manager within 15 days of an accepted offer.  The buyer is also responsible for turning on all utilities necessary to complete the home inspection. 

In general, HUD will either allow items in need of repair to be escrowed into an FHA loan, or they may discount the price of the home in some situations.  However, they will not allow buyers to escrow items that have been marked as "deficient" on the property condition report unless an escrow amount for these items was already determined and included as part of the list price.  So the bottom line is that buyers should read over the property condition report and make sure they are OK with items marked as "deficient" because there is usually no way to go back and ask for these items to be fixed after the fact. 

In many cases, HUD will have already alotted for a repair escrow on certain items that the property condition report has marked as in need of repair.  For example, if HUDs property condition report shows a faulty front door, they may have already stated in the bid that they will allow a repair escrow of $500 to cover fixing the door. 

CAN I PURCHASE A HUD HOME MYSELF WITHOUT USING A REAL ESTATE AGENT OR BROKER?

There is no way purchase or even bid on a HUD Home without using the services of a licensed real estate agent or broker.   Buyers who wish to purchase a HUD home should storngly consider working with an agent that is experienced with HUDs because the transaction is somewhat different from one where the seller is an individual.  HUD also has very specific guidelines and deadlines for not only the contract, but certain other addenda, the home inspection process, requesting repairs, receipt of earnest money by the closing agent and also the  

WILL I HAVE TO PAY MONEY OUT OF POCKET TO USE THE SERVICES OF A REAL ESTATE AGENT OR BROKER WHEN BUYING A HUD HOME?

NO.  The agent commission is paid by HUD directly to the real estate broker.  The buyer pays nothing out of pocket for this. 

WHAT HAPPENS IF THE HOME INSPECTOR DISCOVERS A PROBLEM THAT WAS NOT DISCLOSED ON HUD'S PROPERTY CONDITION REPORT?

In these cases, a buyer can petition HUD to allow for a repair escrow if they are obtaining FHA financing.  The buyer's lender must also agree to this as well and they must also submit a written request to HUD.  HUD will then assess the report and decide whether or not to allow the escrow.  In cases where the total amount of repairs are less than $5,000, HUD will allow this to be structured as a "203B with escrow" loan.  In this case, the work is compelted after closing and both the buyer and the contractor are issued a check.  The buyer typically endorses the check and gives it to the contractor to cash as payment for their services.

However, in cases where the total amount of repairs exceed $5,000, the loan must be restructured into a 203K loan.  A 203K is an FHA loan with a repair escrow of over $5,000.  The 203K loan process is a bit more complex than a simple 203B with a repair escrow.  Also, only a handful of lenders in the Dallas Fort Worth area handle 203K loans. 

IN EVERY CASE, I recommend buyers conduct a full home inspection.  My experience has been that the property condition report sometimes overlooks certain items that may be in need of repair.  DO NOT EVER CONSIDER HUD'S PROPERTY CONDITION REPORT TO BE THE SAME THING AS A HOME INSPECTION!  HUD CLEARLY STATES ON THESE REPORTS THAT THEY ARE NOT HOME INSPECTIONS AND ARE MERELY MEANT TO SERVE AS A GENERAL GUIDE TO THE OVERALL CONDITION.  THEY ARE NOT NEARLY AS THOROUGH AS A HOME INSPECTION. 

I have experienced some cases where a property condition report missed items that were defective - the most recent case was a HUD home that had TWO defective HVAC units that the property condition report stated were functioning normally.  In this case, we were able to successfully petition HUD and the lender for a repair escrow to pay for a new HVAC, which was escrowed and installed after closing.  So in the end, it all worked out.  But if the buyer had neglected to perform a home inspection, they would have had to come out of pocket with several thousand dollars in expensive repairs. 

Contact me at (972) 978-3553 or email me for more information on HUD homes and the HUD $100 Down Program for Dallas / Fort Worth area home buyers. 

If you're looking for a great four bedroom home with two and a half bathrooms in the Parkview subdivision of Mesquite, TX, you will be amazed at the updates in the home at 501 Conger Drive.   

This home features two stories with the master bedroom located downstairs and all three additional bedrooms upstairs.  The home has high ceilings in the master and the entryway, and the floorplan makes for a very efficient use of all 2,359 square feet of space. 

The owners have recently completed some amazing interior AND exterior updates, which include a fabulous kitchen remodel with granite countertops, updated HVAC units in the upstairs and downstairs (2010), roof (2010), dishwasher, exterior paint, backyard fence and master bathroom shower and tub! 

Both the front yard and back yard have nice landscaping with updated landscaping in the front yard.  The large, mature trees in the front yard provide plenty of shade from the summer heat!  The backyard is very large and the fence was recently updated by the owners. 

 

 

 

 

 

 

 

 

 

The backyard also has a storage buidling to keep lawn equipment and other items out of your way in the garage!

The best feature of this home is a toss-up between the newly-remodeled kitchen with granite countertops and the amazing master bathroom with separate shower and tub.  Why settle for less than all of the latest and greatest upgrades?  Look at the amazing detail of the granite countertops, cabinets, tile backsplash and updated appliances in the remodeled kitchen!

 

 

 

 

 

 

 

 

 

 

Here is the kitchen from a couple of other angles as well.  The kitchen has a large breakfast area and is also easily accessible from the separate dining area. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The master bathroom has also recently undergone a major transformation with a new shower and separate tub.  In addition, the master bathroom has a large, walk-in closet with two separate doors that allows for many ways to arrange clothes and other accessories. 

 

 

 

 

 

 

 

 

 

The master bathroom is truly amazing and has more than enough room for two.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With two large living areas, one of which could easily double as a study, you'll have plenty of room for furniture, computers and other accessories.

 

 

 

 

 

 

 

 

 

 

If a large master bedroom is on your list of "must haves", you need to see this one to believe all the space!

 

 

 

 

 

 

 

 

 

And if a grand entrance is a plus, you'll be amazed when you walk through the front door.  Also, the fireplace in the living area is a cozy sight even in the dead of summer!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

List of recent updates to the home accoring to the owners:

• Roof (2010)
• Back yard fence (2010)
• HVAC (air conditioning and heating) units in the upstairs and downstairs (2010)
• Kitchen remodeled with granite countertops and tile backsplash (2010)
• Master bathroom - updated shower and tub with tile and new glass enclosure. 
• Dishwasher

Home details and specifics:

• Four total bedrooms Three upstairs and the master is downstairs.   
• Two and a half bathrooms.  One and a half baths downstairs and one full bath upstairs.
• Two car, attached, rear entry garage.
• Two living areas.  One could be used as a study.
• Breakfast area and separate dining area as well.
• 2,358 square feet per the tax rolls.
• NO HOA DUES!
• Large back yard with patio area.
• Home has laminate wood floors, ceramic tile and carpet throughout.
• Mesquite ISD.  According to the Mesquite ISD website, the schools are: Shaw Elementary, Kimbrough Middle and Poteet High School.
• Don't forget about all of the updates! 

This home is currently listed for $165,000. 

Buyers, ask yourself if you really want to spend countless hours of your time and thousands of your dollars updating and remodeling a home yourself....or if you'd rather buy a home with all the latest and greatest updates ready and waiting for you to move in and call home! 

To schedule a viewing of 501 Conger in Mesquite, TX, call me directly at (972) 978-3553! 

If you're looking for a great 3 bedroom, 2 bath home in Fort Worth and Crowley ISD, 8112 Sweetwater Lane may be the new home you've been looking for.

The home was purchased new by the current owner and the pride of ownership shows throughout as the current owner has metilulously maintained the home. 

 

 

 

 

 

 

 

 

 

 

 

 

 

The home has a very open floorplan that allows lots of natural light to flow into the home.  The kitchen opens up to the large living area and has a large pantry and breakfast area as well. 

 

 

 

 

 

 

 

 

 

 

The backyard has a screened in porch that's perfect for escaping the mosquitos on hot summer nights.  The porch is large but still leaves the backyard with plenty of room.

 

 

 

 

 

 

 

 

 

 

The master bedroom is large and sits just off from the family room.  The second and third bedrooms are easy to access from the master but are still far enough away to allow for privacy.  The home has three bedrooms and two full bathrooms and also has a two car, attached garage.

 

 

 

 

 

 

 

 

Both bathrooms are also a nice size and have a great design. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The home is also located very close to a city park and playground, which is within walking distance at the end of the street.  And since they are city parks, there are NO HOA DUES to pay! 

 

 

 

 

 

 

 

 

 

 

 

SUMMARY OF HOME FEATURES FOR 8112 SWEETWATER in FORT WORTH, TX

3 bedrooms / 2 full bathrooms / 2 car garage

List price - $100,000

Year Built - 2002

Square footage per tax rolls - 1,491 s/f

Per owner, new HVAC system installed in August of 2009. 

Exclusions - Seller will retain mineral rights.

Crowley ISD

If you would like to see the inside of 8112 Sweetater, call me at (972) 978-3553 today!

 

The deadline to close on a home purchase in order to receive the home buyer tax credit is looming.  Home buyers who executed a purchase contract by April 30, 2010 have until tomorrow to close on their transaction in order to qualify for the tax credit.  Buyers taking advantage of the "move up" tax credit get an extra day. 

And quite a few buyers did take advantage of this program.  I was lucky to close a few myself this month.  Fortunately, all of my buyers were able to close by the deadline.  They are all happy to be homeowners and also happy to be $8,000 "richer".

Which got me to thinking.  Why did these people buy a home?  They all wanted to own their own home for different reasons.  The real question was why they chose to buy the home THIS MONTH.  Was it just because the government was giving them $8,000?  Or would they have bought a home anyway and just chose to buy sooner because, all things considered, $8,000 IS a LOT OF MONEY!

Not surprisingly, all of them would have bought a home anyway.  In fact, one of them thought he didn't even qualify for the tax credit.  As it turned out, he did, which resulted in him moving up his original plan to close later in the year. 

Another buyer I closed last week is a teacher.  He would have likely waited until the summer to even start looking at homes since he would have been on summer vacation, plus his lease wasn't up until the fall.  Ideally, he would have closed sometime in August, taken a month or so to make a few improvements on the home and taken his time moving.  Instead, he started looking in late February, found a home in mid April and then chose to wait until almost the end of this month to close.  He had to pay a penalty to get out of his lease, but that penalty was a fraction of the $8,000.   

I would have done exactly the same thing had I been in his position. 

A couple of other buyers closed on new homes.  One of them passed on a builder that was unable to guarantee completion by the June 30 deadline in favor of another builder that had an inventory home that lacked a couple of minor features she really wanted.  Instead, she's going to have a contractor install those upgrades once she gets the $8,000 check in the mail. 

So that begs the question.  How did Peter and Paul fare with the homebuyer tax credit? 

Forgive the arcane analogy.  Paul is the second quarter of 2010.  I see him as the main benefactor of the tax credit because this guy named Sam "robbed" a guy named Peter to pay him.  Who is Peter?  He's the third and fourth quarters of 2010.  He's the guy who would have likely ended up with these transactions if the $8,000 had not been a factor. 

And who is Sam?  He's your favorite uncle. 

My point here is not to make an argument in favor of or against the tax credit.  I'll reserve that for another time.  My point is that many buyers who took advantage of the tax credit would have bought a home regardless; they just chose to buy a little sooner to get the $8,000.  

So how might this affect home sales and prices for the rest of 2010?  Or longer?  How many transactions that would have closed in the latter part of the year got moved up to the second quarter? 

We're already hearing news that home sales are starting to plunge.  

How long will the "hangover" from the home buyer tax credit last?

 

If you're looking for a newer home in the Springtown, TX area but also want a large lot, 304 Sage Trail in Springtown may be your next home! 

304 Sage Trail is my newest listing in Springtown, TX.  The home sits on .421 acres and the home is conveniently located just off of Jacksboro highway on Sage Trail. 

The first thing you will notice about this home is the front porch area that's perfect for entertaining, grilling or just enjoying a quiet afternoon.  There are many possibilities with this front porch area so have some creative ideas ready!

 

 

 

 

 

 

 

 

 

 

 

The home has plenty of yard room on all sides.  There are two large trees in the front of the yard that provide a lot of shade in the hot summers.  The current owner has taken very good care of the yard and the landscaping. 

 

 

 

 

 

 

 

 

  

 

 

Here is a view from the left side of the lot looking across the back of the home.  There's even quite a bit of yard room behind the home.  The yard space on the right side of the lot (looking towards the home) is the largest area.  There are also two large storage buildings that will stay with the home.  They have more than enough room for lots of lawn equipment and some extra storage as well. 

 

 

 

 

 

 

 

 

 

 

 

 You might be wondering how that huge truck got through the fence?  There's an additional gate on the right side of the lot that allows for vehicle access into the property.  (The red truck doesn't come with the home unfortunately, but the storage sheds do!)

Ok so you have a pretty good idea about the OUTSIDE of the home...what about the INSIDE?  The home has some great interior features that you'll love.  Here's a summary of the most notable features of the home interior:

• Three full bedrooms.  The master bedroom is quite roomy and the home has a split floorplan. 

 

 

 

 

 

 

 

 

 

 

 

(Left) is the master bedroom.  (Right) is the second bedroom in the left rear of the home.

• Two full bathrooms.  The master bathroom has a separate shower and tub as well as TWO walk-in closets!  These types of features are hard to find in a home priced this low!
• The second bathroom has a tub/shower combo and is located in between the second and third bedrooms.

Both bathrooms are quite larger than one might expect. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The kitchen opens up to the family room and makes for a very nice feel.  There are many possibilities for configuring living room furniture in this home, especially since there is also a large breakfast area next to the kitchen.

 

 

 

 

 

 

 

 

 

 

 

 

If you would like to view the home at 304 Sage Trail in Springtown, call me at (972) 978-3553 or email me at johnjonesrealtor@gmail.com 

The home is currently listed for $105,000.

Other details:

• 3 bedroom / 2 full baths / 2 car attached garage.
• Per tax rolls, the lot is a total of .421 acres.
• Total square footage per tax rolls is 1,535.
• Built in 1999.
• Buyer can take possession upon closing and funding. 
• Proposed financing: USDA, FHA, VA, Conventional or Cash. 

I sometimes invite affiliates and vendors that have done good work with me and my clients in the past to send me some information about their products and services to publish on my blog.  Tim Bob owns a local a local air conditioning and heating service in the Dallas and Plano area and has worked with several of my clients in the past and also services the HVAC at my home as well. 

If you need the services of a good HVAC tech in the Dallas and Plano area, call Tim Bob at 214-762-2598.

His article this week is about the three options that Dallas home owners typically have to heat their home.  It is a bit technical, but explains the reasons why some methods are more efficient than others.

Enjoy reading!

Typically, three methods are used to heat homes in Texas.

1. Natural gas - Uses a flame to heat the air.  Flame is safely contained within the furnace. This method is very efficient. 
2. Electric resistance.This is the method used in "all-electric" homes.  The initial cost of electric units is typically less expensive, but can be three to four times the cost to operate as gas or heat-pump.  Obeys the “Thermal law of physics” and cannot be changed. Anything electric must follow “The law”.  Electric resistance furnaces cannot be made more or less efficient. They  heat at the exact efficiency as a hair dryer, light bulb or toaster or even a poorly maintained furnace.  The same “law” states that a burning pound of coal at the generating plant will produce the same amount of heat as if you were to burn it in your home!
3. Heat pump- generally used as an option when you want the efficiency of natural gas, but do not have gas.  But does this violate “the Thermal law of physics?”

 

It doesn’t.  The heat isn’t produced from electricity or gas.  It is taken from the air outside.  Very tricky.  There is heat outside when it is twenty degrees.  One must agree 20 degrees is warmer than 5 degrees.  This is the heat available from outside.  Just don’t slide that thermostat switch to emergency heat; you just turned on the expensive electric resistance heat function.

One more note. Magazines and television commercials have advertised an “Amish made” heater that plugs in and is supposedly very efficient.  Not so.  They cannot violate the law of physics.  Here is the rationale they use:  You will be heating the one room you are in.  You then turn the heat down in the rest of the house, thus saving money.  If you heat three rooms with these heaters, it may be as cheap to use your heat pump or gas furnace and heat the entire house.

Contact Tim Bob for Air Conditioning and Heating Sales and Service in Plano, TX (214) 762-2598

Texas is one of only a handful of states in the US that has successfully deregulated electricity providers in a manner that has arguably promoted consumer choice and savings.  There are many electricity providers that service various areas of the state that have been fully deregulated.  Many consumers are still not aware that they are now able to choose their electricity provider.    

Some areas of Texas have still not been fully deregualted because the state feels those areas still need a significant investment in infastructure.  These areas are typically still under the control of electricity co-ops or providers that are owned by municipalities, so home owners in those areas are still not able to choose their electric provider.  Many of those providers shop for the best wholesale electricity rates on the open market and may pass some of that savings on to consumers, but still have a de facto monopoly.   

Companies that provide electricity in deregulated areas are called Retail Electric Providers.   Despite the fact that some areas may offer service from several REPs, maintenance and service of the equipment and infastructure are still the responsibility of the company that owns the equipment and not necessarily the company who bills the consumer for their electricity. 

Consumers who want to compare prices of electricity providers can now compare rates and programs online.  This search feature is provided at no cost to consumers by Powertochoose.org.   

The website allows users to search for electric providers by zip code and sorts the results based on many variables such as rate, contract term, cancellation penalty and also has links to the terms and conditions of each offer. 

Here are some other links that might be helpful to consumers looking for information on electricity choices in Texas:

LIST OF CITIES IN TEXAS THAT ARE DEREGULATED

REASONS TO CONSIDER SWITCHING PROVIDERS

GUIDE TO UNDERSTANDING YOUR CHOICES

QUESTIONS TO ASK ELECTRIC PROVIDERS WHEN SHOPPING AND COMPARING RATES

Home buyers who are pre-approved for FHA financing need to be aware of FHA's Guidelines for property condition.  All buyers who utilize FHA financing to purchase their home will have a licensed FHA appraiser perform an appraisal. 

The appraisal is typically ordered by the lender once the home inspection process is complete and the option period has expired.  In addition to determining an opinion of market value, an FHA appraiser must also note certain deficiencies that may exist with the property condition.

Prior to 2006, FHA was considered by many to be overly strict with regards to property condition.  In fact, many home sellers and/or their real estate agents would refuse to accept an offer from a buyer using FHA financing because appraisers would often require a significant amount of repairs. 

Often times, the homes were in good structural condition and did not pose a health or safety issue to the occupants. 

Back then, appraisers could require items such as damaged countertops, cracked window glass and some other cosmetic deficiencies to be repaired prior to closing, even on homes that may have been sold at a reduced price to offset the less than perfect condition. 

In addition to scaring off some home sellers, these requirements would often discourage buyers looking for homes priced below market for cosmetic reasons from using FHA financing. 

But on December 19, 2005, HUD published mortgagee letter 2005-ML-48, which eased many of these restrictions.   Homes that are structurally deficient or that may pose a health or safety risk to the occupants will still have to be repaired prior to closing.  But for the most part, FHA appraisers will no longer require minor property conditions to be repaired prior to closing. 

EXAMPLES OF MINOR PROPERTY CONDITIONS NO LONGER REQUIRED TO BE REPAIRED BY FHA INCLUDE:

• Missing handrails on stairs.  Prior to this change, any staircase with more than three steps required handrails to be installed.  Of course, it's still a good idea to have this done, but is no longer required by FHA.
• Damaged exterior doors that are otherwise operable.  Generally speaking, if a door will close properly and does not have significant holes or damage, it will not have to be repaired.
• Cracked window glass. 
• Defective and/or peeling paint on homes that were built after 1978.  Lead paint was banned by the Consumer Product Safety Commission on September 2, 1977.
• Minor plumbing leaks.  Appraisers can still require major leaks to be repaired.  The definition of "minor" is subjective, so the final call is up to the individual appraiser. 
• Defective floor finishing or excessively soiled carpet. 
• Evidence of previous termite infestation and damage in which no evidence of unrepaired structural damage exists.  If termites are active and damage is present, an appraiser will typically require this problem to be corrected prior to closing.
• Rotten or worn out countertops. 
• Damaged plaster, sheetrock or other wall or ceiling materials in homes constructed after 1978. 
• Poor workmanship.  Again, this is subjective and doesn't mean that ALL poor workmanship will be excused.  Poor workmanship that results in a structural, health or safety issue will likely still require repair.  It's ultimately up to the appraiser and the underwriter. 
• Trip hazards, such as heaving sidewalks and carpet that was poorly installed.
• Debris and/or trash present in the crawlspace of a home.
• Lack of an all-weather driveway surface.

IMPORTANT NOTE!! - Some lenders have OVERLAY GUIDELINES, which are arbitrary guidelines over and above FHA's minimum requirements.  Home buyers purchasing homes with any of these conditions should consult with their lender and/or loan officer to see if they will require any of these items to be repaired or replaced before closing. 

EXAMPLES OF PROPERTY CONDITIONS THAT STILL REQUIRE AUTOMATIC REPAIR PER FHA INCLUDE, BUT MAY NOT BE LIMITED TO:

• Leaking or worn out roofs.  If more than three layers of shingles exist on a bad roof, all must be removed before roof can be replaced.
• Inadequate access to exits from bedrooms. 
• Evidence of structural and/or foundation problems.  (NOTE-Contrary to popular belief, Conventional loans such as Fannie Mae and Freddie Mac may also require foundation and structural problems to be repaired prior to closing.)
• Defective interior or exterior paint surfaces in homes built prior to 1978.
• Defective exterior paint surfaces on homes built after 1978 where the finish is otherwise unprotected.

PROPERTY INSPECTIONS (SEPARATE FROM A HOME INSPECTION, WHICH I RECOMMEND FOR ALL BUYERS)

FHA also no longer mandates automatic inspections for the following:

• Termites and/or wood destroying insects unless active infestation is observed by the appraiser.  
• Well and septic test.
• Inspection for a roof that is flat or otherwise unobservable. 

IMPORTANT NOTE!!-Individual lenders may require these inspections to be conducted even though FHA does not specifically require them.  Again, these requirements are called OVERLAY GUIDELINES and can be imposed by lenders that choose to require a higher standard than FHA's basic requirements.  These inspections may also be required if mandated by state or local laws or if they are customary for the area. 

FHA will continue to require inspections when the following conditions exist:

• Standing water against the foundation and/or excessively damp basements.  Such conditions can easily lead to foundation and other structural problems and also can be very conducive to wood destroying insect infestation. 
• Hazardous materials on site or located within the improvements.
• Faulty or defective mechanical systems, including electrical, plumbing and HVAC.
• Evidence of structural problems or structural failure, including foundation cracks. 

HOME BUYERS that haven't already signed a buyer's representation agreement with another agent: If you are looking to purchase a "fixer-upper" home, contact me to discuss other financing options that may be available.  There are still loans that allow repairs, both minor and major, to be escrowed.  I can evaluate your options and put you in touch with lenders that can help.  There are also some great programs available on foreclosures that allow repairs to be rolled into the loan.   I have ten years experience as a lender prior to becoming a full time Realtor(R), so put my experience to work FOR YOU!

HOME SELLERS that haven't already signed a representation agreement with another agent and are concerned about whether or not their home meets FHA requirements should call or email me with questions.  DON'T AUTOMATICALLY ASSUME THAT FHA WILL NOT ALLOW YOUR HOME TO BE FINANCED without consulting with me first.  The pool of FHA buyers has increased significantly over the last few years due to many reasons, such as the increase in down payment, credit score and general credit guidelines for Conventional loans, as well as the fall of subprime and Alt A loans. 

You may be missing out on a large pool of buyers if you refuse to accept an offer from an FHA approved buyer.  Call or email me today and we'll evaluate your individual situation.  I have ten years experience as a lender prior to becoming a full time Realtor (R), so use my experience to HELP YOU sell your home! 

Over the last few months, a new scam involving bogus rental listings has surfaced on Craigslist in the Dallas / Fort Worth area.  Recently, I had a client who forwarded me an ad she found on Craigslist that seemed a little too good to be true.  The ad featured a very nice home in the Park Cities area, walking distance to Bradfield elementary, complete with three bedrooms and two baths and well over 2000 square feet. 

According to the ad, the owner was only asking a mere $900 per month for rent!  Anyone who knows the Park Cities area will tell you that would be the deal of the century!

Well, you know the saying.  If it sounds too good to be true, than it probably isn't true.

Luckily I had already heard about this scam while attending a class at Keller Williams Elite in Park Cities.  There had been a recent incident involving an agent with another broker that had received an angry phone call from a person who had fallen victim to a scammer via a fake Craigslist ad.  The scammer had stolen pics of one of her listings and had used them to post a bogus rental ad on Craigslist. 

Unfortunately, the renter had wired money to the scammer's overseas account to secure the property and learned the hard way that she should have had a Realtor® looking out for her interests.  She was trying to take her frustrations out on the listing agent, but should have consulted with a Realtor® long before wiring money overseas.  A Realtor® would have easily been able to figure out that it was a scam by checking MLS, verifying tax records and market rental comparables in the area.

Here's how it works: The scammer scans various real estate listings on the internet for homes that are listed for sale or rent in the Dallas area.  They will often find a really nice home and then place a fake ad on Craigslist for a ridiculously low price. 

In this case, the market rent for this home advertised at $900 per month should have been in the range of $3,500 to $4,000 per month.  That's not to say that there are not occasionally some great deals on rentals available below market, but this was desperately low.

So I instructed my client to not call or email on this ad and then I proceeded to do a little research.  After checking with varous sources, I quickly concluded that this was definitely a scam. 

But I went ahead and emailed the scammer just to see what kind of response I would get.  Here's the reply I received to my email inquiry: (Scammer's reply is in italics.  My notes are in parenthesis.  Bold and underline emphasis added by me.)

Good day Applicant,
 
Thanks for your email and interest in renting my house. I am Brian XXXXXX, the owner of the house you are making enquiry of. Actually I did reside in the house with my family, my wife and my only daughter before and presently we have moved out due to my official job transfer or posting, whatever you may call it, which has now found me in Warsaw, Poland. Presently my house is still available for rent for $900 USD per month (which includes utilities), though i intended selling it off but on a later thought changed my mind and have decided putting it on rent. More so now, I’m currently in Lagos, Nigeria for an international Christian follower's crusade taking place at the Nigeria national stadium, by one Pastor Chris of the Christ Embassy Ministry.

(Hmmmm.)
 
I want you to understand that I spent a lot on my property that you have requested to rent, so I will solicit for your absolute maintenance of this house and would want you to treat it as your own because cleanliness they say is next to Godliness. It is not all about the money to be paid on rent or spent; it is all about a good maintenance culture which I want you to adopt on the property. I want you to keep it tidy all the time so that I would be full of smiles whenever I come and above all, a good, strong and tight relationship between us when I come for a check up. Please one more thing, I wouldn’t like to have any benefit of trust in you because I want to stand in your words that the property would be well taken care of all the time.

(He's playing the trust card like the ace of spades...)
 
I believe you have see how lovely it is if from only the pictures you saw in my posting compare to the 100% comfort to be derived from it as an occupant. Please note than you will only be able to drive by the house for now but can't have a look at the interior until i have sent the keys and documents of the house to you. Reason because, i couldnt find someone trust worthy to drop the keys with as my call down here was so sudden. I do hope you understand.

(If the terrible grammar and spelling hasn't already sounded off an alarm, the fact that he's not allowing anyone to view the home prior to sending money should have the alarm bells rattling your eardrums.)
 
It has a dramatic entry foyer with ceramic floor. Extremely spacious rooms throughout with lots of big windows...nice and light! New neutral paint and some newer carpet. Very quiet, low traffic area. New fridge (7/07)...I believe it’s absolutely a perfect home for you and your family. Utilities include Water, Trash, Sewer, Gas etc. Please note that, a deposit payment would be required if accepted to have the property rented.
 
SO IF YOU ARE REALLY INTERESTED I WILL WANT YOU TO FILL THE RENT APPLICATION FORM BELOW.
RENT APPLICATION FORM.
FIRST NAME:__________
MIDDLE NAME:__________
LAST NAME:__________
PROFESSION:__________
PHONE: _______________
(CELL)PHONE__________
(WORK)PHONE__________
(HOME)PHONE__________
ARE YOU MARRIED: __________
KIDS _____ (YES/NO), HOW MANY ________
PRESENT ADDRESS: _____________________
CITY: _______________
STATE:______________
ZIP CODE: ____________
HOW LONG ___________IF RENTING
WHY ARE YOU LEAVING__________
IF THIS HOUSE IS BEING GIVEN TO YOU,HOW LONG DO YOU INTEND STAYING ____________
WHEN DO YOU INTEND MOVING IN ______________
IF YOU HAVE A PET: _________
NAME OF PET: _____________
KIND OF PETS: _____________
HABITS: ___________
DO YOU SMOKE ______________
DO YOU DRINK ______________
DO YOU WORK LATE NIGHT ____
HOW SOON CAN YOU MAKE THE MOVE IN DEPOSIT ($900) REQUIRED: ____________
WHEN AND WHERE DO YOU WISH TO RECEIVE THE KEYS AND DOCUMENTS OF THE HOUSE: _______________

(I really contemplated filling this out with fake info just to mess with the guy, but figured my time would be better spent informing the public about this scam.)

Looking forward to hearing from you with all this details so that I can present it to my family, pray over it (because I consult the Almighty God before making any decision) and if accepted, and then have them stored in my file in case of issuing the receipt for you and contacting you. Await your urgent reply so that we can discuss on how to get the document and the keys to you, please we are giving you all this based on trust and again I will want you to stick to your words, you know that we are very far apart now and only putting everything into God's hands and hope that you will not let us down.

(Again, he's playing the trust and religion cards like pocket rockets in a poker tourney.  Gotta love it...)
 
The house will be available for rent for a period of five and a half years so you have a choice of deciding how long you intend staying there.. Here is my number 011-234-XXXX-XXXX or  011-234-XXXX-XXXX, I will be expecting to hear from you.
 
Feel free to call me for more information and arrangements.
 
God Bless,
Brian.

Ok folks, there you have it.  There are several dead giveaways that this is a scam:

• The name shown as the owner of record on the Dallas county tax rolls is a different name than the person in this email.  I deleted the address to protect the owner's identity, but it was listed in the Craigslist ad. 
• The rent of $900 that he is asking for this home is thousands of dollars below market for the area.  Since I have full access to the MLS system, it was easy to look at market rent for this area.  Plus the price supposedly included all utilities.  The utilities alone could actually top what he's asking for rent.  Again, if it sounds too good to be true.....
  
• He's not allowing anyone to see the home prior to wiring him $900.  Big, BIG problem.  Don't walk.  RUN!
  
• The home was listed FOR SALE in MLS, but was not also listed for rent.  The scammer obviously stole the pictures and description from the listing on another website and then published this fake rental ad on Craigslist.

Luckily for my client, she had me to check all of this out for her ahead of time.  And since the Realtor® commission is generally paid by the landlord, my services did not cost her one penny. 

So the moral of the story is...Use common sense when dealing with people on Craigslist (Craigslist even had a prominent warning about wiring money overseas and/or dealing with landlords that cannot meet in person), and it's well worth it to have a licensed Realtor® working for you when searching for rental properties!  Watch out for scammers on Craigslist!!!

Crime reports and statistics are important to Dallas home buyers searching for new homes.  While Realtors can provide a wealth of information about schools, recreational facilities and home price trends in neighborhoods, we cannot refer to an area as "safe" or "low crime" because of liability issues and the subjective nature of such labels.  Referring to an area as "safe" or "low crime" could be considered steering and/or redlining, which is a practice that is forbidden by Federal law and can result in serious consequences. 

However, we can provide information about where to obtain reliable data related to crime statistics.     

Dallas home buyers curious about crime statistics have many options available online that provide helpful information about incidents of crime that have occured in various cities and neighborhoods. 

The methodology for how law enforcement agencies compile and report crime statistics is managed by the FBI via their Uniform Crime Reporting program.  This program dictates how crime data are compiled and reported by law enforcement agencies across the country.

LINKS TO AND INSTRUCTIONS FOR SITES WITH INFO ABOUT CRIME STATISTICS AND SEXUAL OFFENDERS:

* www.crimereports.com - Information from over 700 law enforcement agencies and sexual offender data for all 50 states. 

• Type in the property address on the home page to see results.
• Results page allows sorting by crime, date or distance. 
• Selectable time period of three, seven, 14 or 30 days. 
• Results shown on a Google map with detailed information provided to the left of the map. 

* www.localcrimenews.com - Updated crime news and arrest records for local cities, including crime graphs, newsletters, RSS feeds for city crime news and many charts and graphs showing crime statistics for cities all over the United States. 

• Click letters A-Z to show statistics by city.
• Smaller cities may not be covered by this site.  Works best for larger metro areas and suburbs.
• Links to crime maps, RSS feeds, graphs and statistics are located on city pages.

* http://www.fbi.gov/ucr/ucr.htm - Information about the FBI Uniform Crime Reporting Statistics and Crime Data Reporting Methodology.  The FBI created the Uniform Crime Reporting Program in 1930 as a means of collecting and reporting crime statistics in a uniform manner throughout the United States.   A good site to read if you're curious about regional, state and federal crime data, as well as how the data are compiled. 

Home buyers should consider researching crime statistics in their current neighborhood so they can compare them to neighborhoods they are interested in viewing.  Virtually all neighborhoods in the United States have some level of crime.   Often times, buyers may be surprised to see that their own neighborhood has a higher level of crime than they might have expected, despite the fact that they may have considered it a "safe neighborhood".  This helps to put things in perspective when comparing neighborhoods. 

Home buyers concerned about the safety of a particular neighborhood should also consider speaking with neighbors, neighborhood associations, the police department, as well as other law enforcement agencies.  Driving a neighborhood at night is also sometimes a good idea.