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       SAN DIEGO                      APRIL 2011

                   Your Complete Guide to Purchasing
                Foreclosures   and other   Bargain Homes

                HOMES in ALL Areas
Homes For Veterans & Active Duty Military Magazine

LISTS                          NO Money Down
                               NO Closing Costs
With Daily
Email Updates
                                            Available for VA Homebuyers
                  Introducing Our

           Quick-Start Plan
       Your Fastest, Easiest & Most-Economical
         Way to Purchase Great Homes in the
        San Diego Area At Below-Market Prices

   H     ere’s the don’t need to
re-invent the wheel to buy a bargain home
                                               n Puts YOU at the top of our bargain home-finders list,
                                                    giving you first crack at the very best deals.
in the San Diego area, not when you AL-
READY have a team of professionals ready,
                                               n Provides you with daily email updates of ALL bargain
willing and able to assist you in every             homes that meet your criteria.
phase of the bargain homebuying process.
And the best part: All of our services to      n Provides complete behind-the-scenes information on
you are...                                          every home you’re interested in.

  FREE!                                        n Prepares you to buy so you can act quickly when the good
                                                    homes become available.

                                               n Lines up the money to purchase ahead of time – and
                                                     sitting there in a virtual suitcase full of money.
  Simply give us a call – and we’ll
do the rest. No cost, no obligation,           n Provides complete education of the entire bargain
no hassle and no pressure.                          homebuying process.
    With so many incredible bargains on
the market these days. NOW is when the         n Places a full team of real estate, mortgage and title
smart buyers are buying. Now is the time             professionals at your disposal – completely FREE of
when you make your money on real estate.             Charge – and working for YOU.
There’s an old saying that goes, “You make
money in real estate when you buy, not         n Allows YOU to be the one who makes a killing on real
when you sell.”                                      estate when the market turns.
    So buy right – and you’ll make money.
It’s as simple as that.
                                               n And it gets you into a bargain home before prices and
                                                    interest rates go up.
         Two Ways to
         Get Started...
         1) Complete the Pre-Qual Worksheet on Page 17 and then call (619) 370-6114 or...
         2) Go to and complete our online Information Worksheet.
2 – San Diego Foreclosures Magazine – (619) 370-6114

Homes For Veterans
& Active Duty Military                                                      Magazine!
                                                                            Starting on page 19

    Bargain Homebuying
            MADE EASY!
              You’ve Reached
Foreclosures and short sales are simply today’s very BEST real
estate bargains. Nothing compares, and we’ve never seen such
an incredible opportunity for Homebuyers – like you – to purchase
homes at below-market prices with fantastic terms.

This is the place to start.                                                                   Homes in ALL areas.
Foreclosures Magazine will guide you every step of the way                                Properties as low as $25,000
to finding, financing and purchasing Bargain Homes in the                                    up to over $1 Million!
San Diego Area. We are the ONLY publication dedicated
100% to helping YOU get your very best real estate deal.

When you put yourself into our hands, we will help you....
• Find EVERY HOME that fits your wants, needs and
• Arrange for the financing for your purchase...
• Coordinate all paperwork, inspections and more...
• And you can rely on our years of expertise to make sure
  everything gets done RIGHT!

So if you’re ready, turn the page and let’s
start having some fun buying Bargain
Homes in San Diego...!
2011 San Diego Central Real Estate. Jonathan Aronson, Broker.
San Diego Central Real Estate is a licensed California Real Estate Broker

                                                                                (619) 370-6114 – San Diego Foreclosures Magazine – 3
      Let’s answer
 the most-pressing
                                       Why is NOW
   question FIRST:                    the best time
                                     to buy a Home?
We can all acknowledge the fact that:
        1) Home prices are extremely low...
        2) And that mortgage interest rates are near rock bottom...
        3) And that sellers are very anxious to sell their homes...

   Y   et with all the news of foreclosures, short sales and families in crisis, is now really the best time
to buy a home?
   This is an understandable concern, but keep this in mind: The people who are having trouble today
are the ones who bought (or refinanced) at the peak of the market in the 2005 to 2008 time frame, not
the people who are buying now. In fact, a lot of people who DID have equity in their homes as values
INCREASED, took that money out when they refinanced during the boom years. So a lot of the people
who are losing money today have already made money off their homes when they refinanced.
   The truth is, except for a relatively short three year period, most homeowners can honestly say their
                                             homes did go up in value, but they’re now caught trying to
                                             sell at the lower values. This is unfortunate, but that’s not
                                             how it is for today’s homebuyers.
                                                 In fact, once we work through this inventory of homes
                                             with over-value loans on them, the market will return to
                                             normal. But it’s during this transition period, while it’s still an
                                             incredible BUYER’S MARKET, that you will be able to pick up
                                             some of your very best bargains.
                                                 I honestly believe that the worst is behind us, at least in
                                             terms of dropping home values. Nationally, homes prices
                                             have either stabilized or begun to climb again in many areas
                                             of the country. If you look at it this way, here in San Diego,
                                             we are fortunate to still be in the best of all buyer’s markets.
                                                 Fortunate for YOU!
   But times are changing. The question is will you be part of that rare group of forward-thinkers who
took advantage of the market when it was down, or will you be part of the panickng horde, trying to
get in before prices and interest rates climb too high, like they did in 2005 to 2008?
   This isn’t rocket science and you don’t need a crystal ball to see the future. The past has always
taught us valuable lessons, if we’re willing to learn.
   You CAN listen to those who say this isn’t a good time to buy – because why? Because homes
prices and mortgage interest rates are TOO low? Or because there just aren’t enough nice homes out
there to buy? (Yeah, right!) Or there’s no track record of home prices ever being higher than they are
now? (Are you kidding?)
   The truth is there will always be the naysayers preaching that it’s not a good time to buy because
values are down, or because values are too high. But if you’re going to err on either side, doesn’t it
make more sense to buy when there is an incredible UPSIDE potential for future price increases based
upon history, not when prices are at their highest point ever (as in 2005-2008)? Who is taking the big-
ger risk? The person who bought while prices were down, expecting them to go higher? Or the person
who bought when prices were at historic highs, expecting them to go even higher?
   Like I said, this isn’t rocket science!
   Call us today, and let’s talk about your future in real estate.
   Jonathan Aronson, Broker-Owner, San Diego Central Real Estate, (619) 370-6114

4 – San Diego Foreclosures Magazine – (619) 370-6114
     All The Bargains,
                 All The Time
                                                             With our FREE DAILY EMAIL
                        Provided                             updates of ALL the
                        to you on a                          properties that meet
                                                             your wants, needs &
                        Silver                               qualifications.
                        Platter!                             Good properties come on the
                                                             market everyday. But the really
                                                             good ones don’t last too long.

To Receive Our Daily Emails...                               You need to be ready to jump
First, we need to find our how much of a home you            when they do become available,
qualify for, what features you want in a home and where      armed with information, resourc-
you’d like to buy. This is a free and simple process.        es, financing and a dedicated
                                                             team of professionals guiding you
Turn to page 17 and complete our Pre-Qualification Form      every step of the way.
and then call (619) 370-6114.
Or go to                         All of our Bargain Home
We’ll take it from there...!                                 Finders services are...
                                                             x FREE
                                                             x Up-To-Date
                                                             x Informative
                                                             x With photos & more
                                                             Just think, while you’re at work,
                                                             or a home watching T.V., we are
                                                             busy working for you, looking for
                                                             the best properties, with the best
                                                             terms, that fit all your wants,
                                                             needs and qualifications.

                                                             Let us do all the work.
                                                             This is OUR job.

                                                   (619) 370-6114 – San Diego Foreclosures Magazine – 5
    The Opportunity of the Decade
                                               The following is a quick
                                                Questions & Answers
                                              section that will lay a good
                                                  foundation for your
                                                 Bargain Homebuying

   What is a Foreclosure?                     they’ve already spent on the property.      within 60 days. This is pretty incredi-
   A foreclosure is a property where          Plus they’ve incurred thousands of          ble, since most homes take four months
the seller has defaulted on their mort-       dollars in foreclosure costs. And lastly,   or more to sell. So initially the home al-
gage loan and the bank holding the            banks are required to hold a certain        ready starts out below-market, and if it
note has taken ownership of the home          amount of money in reserve for every        doesn’t sell fast, the banks will aggres-
as collateral for the defaulted loan. The     REO they carry. The more REO’s, the         sively lower the price even more until
bank is now the owner (seller) and the        more money that’s tied up that they         it does sell. I’ve seen $20,000 drops in
current loan has gone away.                   can’t loan out.                             price within only 30 days of listing!
                                                  As the real estate bust has con-
   What is an “REO?”                          tinued, banks have found themselves            What about the condition
                                              with thousands more REO’s than they
   When a bank foreclosures on a                                                          of these properties? I’ve
                                              have ever had to carry on their books,
home, the property is placed in their
                                              and the banks are literally being eaten     heard some can be pretty
Real Estate Owned department, hence
                                              alive by their REO inventories. So for      nasty.
R.E.O. So an REO is a bank-owned
                                              the health of the banks, and of the             In the past, REO’s were usually
foreclosure. We use foreclosure and
                                              economy as a whole, these REO’s must        in pretty rough condition and were
REO interchangeably throughout this
                                              be sold.                                    reserved for contractors and cash buy-
                                                                                          ers who were able to go in a rehab the
                                                 The simple truth is banks                properties for resale.
  Why are REO’s such good                                                                     Often the person losing their home
deals?                                        are not in the business of                  to foreclosure thought to themselves,
    The bottom line is banks cannot           owning homes, just financing                “If you want the house back, fine.
afford to carry a lot of REO’s in their in-   them, so they have to dispose               But I’m taking everything that’s not
ventory, so they MUST sell them – and         of these properties as fast as              nailed down (and some things that are)
sell them fast. They do this with price.      they can.                                   with me.” In some cases, people even
And this is why foreclosures are such                                                     knocked holes in the walls, stripped out
great bargains.                                   In the past, banks weren’t under        carpet, took the appliances, splashed
    Beginning in 2006, the entire             that much pressure to quickly sell their    paint over everything – just about any-
country suffered an unprecedented             REO’s, so they were normally priced at      thing you can imagine, you’d find them
drop in home prices, coupled with a           market value, based on their condition.     in foreclosed properties.
very deep recession that brought about        Today, the banks ask their agents for           But times have changed. REO’s
near historic job losses. The causes          a listing price that will sell the home     these days are often in very good
for the drop in home values are many                                                      condition, having been taken back from
and complicated, and I won’t bore you                                                     decent people who lost their homes
with the details. Just note that market                                                   simply because of market conditions,
forces have caused millions of people to                                                  job loss or other catastrophes in their
default on their mortgage loans, result-                                                  lives. They took pride in their homes
ing in a corresponding large number of                                                    and really hated to leave. They don’t
foreclosures.                                                                             blame the bank, or the home, for their
    A number of things happen when                                                        situation. This isn’t true in every case,
a bank takes a property back in fore-                                                     but I’m amazed at the quality of most
closure. First of all, the underlying                                                     REO’s these days. And so will you!
mortgage loan is dead. The bank has
no money coming in for all the money

6 – San Diego Foreclosures Magazine – (619) 370-6114
                                                                           “At these prices and
                                                                            such low payments
                                                                           – how can you afford
                                                                           NOT to buy a home?!”

  Will the banks fix up the
properties?                                 any money and you’d just be taking on       prices are down to 2001-2002 levels,
   It’s hit or miss, but I’ve been see-     more risk than is necessary.                interest rates are still at historic lows
ing more REO’s where the bank has              We go into more detail later on un-      and banks and other sellers are willing
gone into the properties and had them       der “Inspections.”                          to deal.
painted, put new appliances, new car-                                                       This market will not stay this favor-
pet and more, prior to putting the home       Are REO’s the only bargain                able for buyers forever. All markets
on the market.                              homes on the market these                   move in cycles. And eventually prices
   The simple truth is most properties                                                  will move higher.
                                            days?                                           As a matter of fact, interest rates
need to qualify for a new loan, and fix-        No they’re not!
ers are having more and more trouble                                                    are poised to climb, as deficit spending
                                                In fact, just about any home you
qualifying. Banks know this, so they are                                                continues to hit records highs for the
                                            buy these days will be a bargain. The
more willing to get the home into “loan-                                                foreseeable future. Inflation will occur
                                            other categories of bargains include
able” condition, all to the advantage of                                                and mortgage interest rates MUST
                                            “short sales” and “traditional resales.”
the new buyer!                                                                          rise. When this begins to happen, more
                                                We go into more detail in other sec-
                                                                                        and more buyers will flood the market,
                                            tions of this magazine about these cat-
  How do I find foreclosed                                                              trying to buy before rates get too high.
                                            egories of homes, but briefly short sales
                                                                                        And this will drive home prices up.
properties?                                 are where the seller can’t sell the home
                                                                                        We’ve seen it before, and we’ll see it
    This is probably the easiest part of    for as much as they owe on it, so the
                                                                                        again. Guaranteed.
the whole transaction. ALL REO’s are in     home gets sold at current market price,
                                                                                            Do you wait for this to happen? Or
our Multiple Listing Service (MLS).         and often below. The bank holding the
                                                                                        do you buy now and reap the rewards
    Everyday, dozens of new REO’s           mortgage takes the loss. And you get a
                                                                                        for your intuition?
come on the market. As part of our          bargain.
Plan of Action for you, you’ll receive          Traditional resale homes are normal
daily emails of all new REO’s that meet     transactions where the seller can sell         What do I do next?
your needs, wants and qualifications.       the home for enough to pay off the loan         The first thing you need to do is
There is no need to subscribe to any        without any special arrangements from       find out how much of a home you can
additional services or scour the internet   the lender. With so much competition        afford. There are two ways you can do
for deals. It’s simply a waste of your      from REO’s and short sales, traditional     this, for free and with no obligation.
time.                                       resales must be priced at a level that
                                            will get them sold. This makes them           1) Fill out the Loan Pre-Qualifi-
  How can I be sure I’m not                 bargains as well.                           cation Worksheet on page 23 and
                                                Like we’ve said, this is the BEST
buying a lemon when I buy a                                                             then call us at (619) 370-6114.
                                            time to be a homebuyer!                       2) Go to SDForeclosuresMagazine.
   This is why you need professionals                                                   com and complete the online Pre-
helping you. We know how to evalu-             But is now really a good                 Qualification Form.
ate homes and know all the inspections      time to buy?
that you’re entitled to have. We also          There’s an old adage that says “You         We’ll take it from there. Once Pre-
know how to negotiate needed repairs        make money in real estate when you          Qualified, we will set all the wheels in
and how to get them paid for.               buy a property, not when you sell it.”      motion that will end with you owning a
   Since our services are FREE to           This means that if you buy right, you’ll    bargain home of your own!
homebuyers, there’s no good reason          make money.
to go it alone. You won’t be saving            This is the time to buy right. Our           Questions: (619) 370-6114

                                                                        (619) 370-6114 – San Diego Foreclosures Magazine – 7
  Bargain Homes:

     There are approximately 1,190 foreclosures in the
     Greater San Diego Area. You only need ONE!

Realities of the Market                            chase price, your payment changes by about         as much experience as we do. So let us be
                                                   $7.25 per month. Going a few thousand dol-         your guide. And remember, all of our services

             ver the past nine years or so,        lars higher, especially in a bidding scenario,     to you are FREE!
             we’ve seen prices climb through       won’t cost you too much more, but it can save          • ALL REO’s are listed by Realtors and
             the roof, and then drop through       you thousands of dollars out of your pocket        placed in the Multiple Listing Service (MLS).
the floor. It’s been a real roller coaster ride    or closing costs and go a long way in helping      REO’s will be included in every home
for all of us.                                     to get your offer accepted                         search Integrity provides.
    Some people have been able to prosper               • Nearly all REO’s are sold in “As-Is”            • A vast number of REO’s are in very
in this environment and some have been             condition. With most financing programs the        good shape and are great bargains. For the
hurt. For those who bought homes or refi-          home must be in decent shape, so if you’re         good ones, however, be prepared to make an
nanced at the very peak of market, they are        looking for a true fixer, nearly all loan pro-     offer quick and expect a “Highest and Best”
now the ones in foreclosure or having to do        grams these days require the home to be in         request triggered by multiple offers.
short sales.                                       good condition, especially loans with no- or           • And finally, have a real estate and
    Well every cloud has a silver lining, and      low-down payments.                                 mortgage professional standing next to you
people like you have been handed the op-                • More and more banks are realizing that      throughout the process, and go in with your
portunity of a lifetime to buy great homes at      since many “fixer-type” loans are not around       eyes wide open and your expectations in
prices that are truly below market.                anymore, they are having to do more work to        line.
                                                   the properties in order to get them sold. But
          Foreclosure Facts                        all repairs will have to be negotiated upfront
                                                   and will only cover those items required to
                                                                                                      Be Prepared
                                                   get the financing (if they agree to any repairs        The honest truth is that you can find some
    Recently, banks have found themselves
                                                   at all).                                           incredible bargains with foreclosures. In fact,
with more and more foreclosed properties
in their Real Estate Owned (REO) depart-                                                              you can buy homes for as low as $25,000,
ments. This has really hurt, considering the
cost to maintain these homes, the foreclo-
                                                       Our goal is to get                             even here in San Diego. These will be all-
                                                                                                      cash transactions and the homes will require
sure fees and the fact that they have so many          the seller (the Bank)                          a lot of work, but they are available.
                                                                                                          Or you can find foreclosures even on
dead loans on their books.
    To dispose of these properties, banks              to pay all of your                             multi-million dollar mansions!
have been putting them back on the mar-
ket at prices substantially below market
                                                       closing costs.                                     But for the rest of us, a decent home at
                                                                                                      a great price is our goal.
just to get them sold FAST.                                                                               But the key is to be ready to buy when
    But as a homebuyer, it has provided you             • It’s important to have a Home Inspec-       the good ones come on the market. Just
with a unique opportunity to buy a real bar-       tion, with your approval of the inspection be-     like you, most buyers are looking for the
gain home.                                         ing a contract contingency. But don’t plan on      “move-in” deal. These properties ARE out
                                                   using the Home Inspection to try to negotiate      there, but like I said, you need to be ready
          REO Negotiating Basics                   more repairs. It will be for your information
                                                                                                      to jump – before someone else does.
                                                   only – and to give you an “out,” if needed.
    Here are some quick REO realities:                  • You need a VERY experienced Re-
                                                   altor working for you, one who has been
                                                                                                          The easiest and simplest thing to do is
    • Most prices for REO’s these days are al-                                                        trust in San Diego Central and let us han-
ready deeply-discounted. Trying to go much         in thousands of homes, so you can get an
                                                   honest assessment of the property when you         dle everything for you. You have your life
lower, on decent, move-in condition homes,                                                            and your job to tend to.
may not work.                                      first see it, before you start spending a lot of
                                                   money on inspections.                                  But this is our job. And until you buy
    • As soon as a bank gets more than one
                                                        Also, your Realtor needs to have a pretty     and close on a home – we don’t make a
offer on the REO, they usually ask all bidders
to come back with their “Highest and Best”         good idea what the loan type requires for          dime! So we’re motivated!
offers. Then they pick the one that makes          condition of the property.
tthe most money for the bank.                           (Please note: We are NOT professional
    • Our goal is to get the seller (the Bank)     inspectors, and as such, cannot be held re-             Integrity is here to help you
to pay ALL of your closing costs. So consider      sponsible for our advice in this matter.)
                                                        • Blatant self-promotion: At San Diego
                                                                                                        purchase and finance ANY home
that a lower-than-list-price offer, without get-                                                         in the Greater San Diego area.
ing closing costs assistance, is often not as      Central, we have over 23 years experience
good as a higher price offer with ALL your         working exclusively with Bargain Homebuy-                     Call us today at
costs paid. In fact, for every $1,000 in pur-      ers, both as Realtors and as Mortgage Bro-
                                                   kers. In fact, very few people in the area have
                                                                                                               (619) 370-6114
8 – San Diego Foreclosures Magazine – (619) 370-6114
  Features Checklist
                            Price Range:




                Square Footage Range:

                          Age of Home:

          Condo/Single Family (Yes/No)

                  Garage Requirements:

      What Schools Do I Need Nearby:

                  Other Considerations:

                     With the current tightening of mortgage qualifying and the elimination of
                   other loan programs altogether, VA financing has climbed to the top of the
                   mortgage ladder as the very best program available.
                      But it is only available to those who have served, or are serving, our na-
                   tion in uniform.
                      With the abundance of incredible real estate bargains we have today, vet-
                   erans and active duty military are really doing themselves a disservice if they
                   don’t take advantage of all their benefits.
                      Contact us today. Besides San Diego Foreclosures Magazine, San Diego
                   Central Real Estate is also the local publisher of Homes For Veterans Maga-
     FREE          zine and have been specializing is VA transactions for over 23 years. We
  SERVICE know all aspects of the VA program better than just about anyone. And we
       for all     specialize in the VA NO-NO Transaction (No Money Down & No Closing
Military Personnel Costs) that saves you money!
   See Page 19        And if you’re active duty and receiving Basic Allowance for Housing
                   (BAH), you have the government already paying you for your housing ex-
                   pense. You might as well use it to pick up a really good bargain home with
                   the government paying all or most of your mortgage payment.
                      Call us today. The sooner you start, the sooner you’ll be moving into a
                   home of your own!

                     (619) 370-6114      or visit our website:
                                                                 (619) 370-6114 – San Diego Foreclosures Magazine – 9
  Bargain Homes:

     Traditional Resales
Even though the focus of this publication is on Foreclosures & Short Sales,
there are a lot of traditional resale homes which can be classified as bargains, too.

• What are Traditional Resales?
     These are properties where the sellers have enough eq-            Compared to REO’s and Short Sales, Traditional
uity in their homes to sell them outright and still walk away from     Resales have a lot going for them.
closing with some money in their pockets.
     These are the prime properties because they can usu-              1) They can usually close in less time than REO’s and
ally close faster, are in better condition and are easier to get          definitely faster than short sales.
the sellers to pay all the buyer’s closing costs.                      2) There is usually a seller around who can do necessary
     It’s unfortunate that these quality properties need to com-          repairs, or can contract out to have them done.
pete with REO’s and Short Sales. But it does open up the               3) Because of the competition in the market, assistance
opportunity for you to find a real bargain on some really nice            with at least a portion of the buyer’s closing costs is
homes.                                                                    expected by most sellers.
     In the past, appraisers would not put as much weight on           4) Since most traditional resales are owner-occupied,
foreclosures and other distressed sales because they were                 they’re generally in better condition than vacant or
rare and adversely affected neighborhood values. Not so any-              abandoned properties.
more. Appraisers lump REO’s and short sales right in with tra-         5) We can usually get a quicker reply to our purchase
ditional resales. This is bad for the sellers because their home          offers from a traditional seller than from a bank.
values drop, but good for the Bargain Homebuyer. Now tradi-            6) And Home Warranties are more commonly included
tional resales need to be priced competitively with all the other         in traditional resale transactions.
                      homes selling in the area, including REO’s          (See “Inspections” on page 14.)
                      and short sales.

                           So whether the home you fall in love with is a foreclosure, short sale or traditional resale,
                      you can rest assured that whatever you buy, in today’s real estate market, it will be a bargain!
                        All you need to do is look logically and dispassionately at the decision of whether or not to
                      buy a home – and we’re sure you’ll make the right decision...
                        Consider these questions:
   • Are homes prices now extremely low compared to                  • Do I realize it’s always better to own than to rent?
     where they were just a few short years ago?
         YES!                                                        • Do I understand that purchasing and financing a
   • Have prices ever been higher, so I can realistically              home can be a complicated process?
     expect to see higher values in the future?
        YES!                                                         • Do I know that the professionals at San Diego
   • Can I purchase a home today for around the same                   Central will work day-and-night, seven-days-a-
     price as I could rent a comparable property for?                  week, to make sure I find the right home, at the
         YES!                                                          right price, with the right terms?
   • Are mortgage interest rates still near historic lows?                YES!
         YES!                                                        • And do I realize that as a Homebuyer, all the
   • Are interest rates expected to rise sharply very                  Realtor services they provide me are FREE?
     soon due to deficit spending and over-borrowing by                   YES!
     the Government?                                                 • Will I be starting the homebuying process today by
         YES!                                                          contacting San Diego Central?
   • Do I understand that l have to pay to live some-                     We hope so!
     where, whether I rent or buy?
                                                                          Contact us today: (619) 370-6114 or
         YES!                                                             online at
10 – San Diego Foreclosures Magazine – (619) 370-6114
   Bargain Homes:

      Short Sales &
               There are approximately 1,224 Short Sales/
               Pre-Foreclosures in the Greater San Diego Area.

n Short Sales &                                     The Actual Short Sale Process:                          Once this is all done, the file goes before
 Pre-Foreclosures:                                      With a short sale/pre-foreclosure, the seller
                                                    is not allowed to get any money at closing, so
                                                                                                        a loan committee to approve, counter or reject
                                                                                                        the offer. If the offer is within reason and within
                                                    they don’t really care what the offer is and how    tolerances of the BPO, the offer will usually be
    When a homeowner needs to sell their            much the bank will be losing. So the seller         accepted. But this whole process could take
home, but they owe more on their loan than          will sign the offer you make on a short sale.       30 to 90 days – or more – to complete, just to
they can sell the home for, they have to do         (See the box below for an important update.)        get a response from the bank!
what’s called a “Short Sale.”                           Once the seller signs the offer, it’s sent to       The problem with most short sales is that
    A Short Sale works like this: When the sell-    the bank to see if they will accept it.             the bank doesn’t even open a file on the prop-
er receives an offer on their home, the offer           At the bank, a negotiator from their Loss-      erty until an offer has been received. So in
must be sent to the seller’s mortgage lender        Mitigation Department is assigned to the file.      the weeks – and months – before an offer is
to see if they will accept a “short” payoff on      This person will evaluate the seller’s financial    received, nothing is done to get the process
the loan.                                           statements, payment history and hardship let-       started.
    For you, the advantages of buying a short       ter to determine if a short sale is warranted.          And that’s why a Short Sale takes a lot of
sale is the ability to get the home below mar-      They will also order the Broker Price Opinion       time and patience to complete.
ket, since it’s cheaper for a bank to accept a      (BPO) which will determine the market value
short sale over a foreclosure. Also, the home       of the home.                                            But there’s hope on the horizon...
may be in better condition than with a foreclo-
    The only disadvantage to a Short Sale is
the time it takes for the bank to approve – or
reject – a short sale offer. It could take two
                                                       A New Short Sale Plan (Here’s Hoping it Works!)
months or more just to find out if your offer             Since the alternative to a short sale is          Then when an offer does come in, the
has been accepted, and then another month
                                                      foreclosure, the government and the banks         bank will have 10 days to accept, counter
to close it. And that’s being optimistic. A short
                                                      have been working feverishly to come up           or reject the offer. If the offer (or negotiated
sale could take as little as two months, to more
than six months. (See the box at the right for        with a plan that will cut down on the number      price) is within an acceptable range of the
some exciting news about speeding up the              of foreclosures by encouraging more short         BPO, the offer will be accepted, subject to
process!)                                             sales.                                            other terms of the offer, of course.
    There are also two types of short sales:              So on April 5, 2010,                                                    So      theoretically,
A Straight Short Sale, where the seller is            a new short sale plan                                                   you could have a short
current on their house payments, and a Pre-           was introduced that’s                                                   sale offer accepted
Foreclosure where they are behind on their            designed to speed up                                                    by the bank within 10
payments and are facing foreclosure if they           the short sale process.                                                 days of submission!
can’t sell the home in a reasonable time.             If the new process                                                          Additional features
    With a Straight Short Sale, the bank may          works then short sales                                                  of this new program in-
not be that anxious to negotiate with the seller,     could be completed                                                      clude offering between
since they are still making their payments on
                                                      in 40 to 60 days, from                                                  $1,500 to $3,000 to
time and the bank is getting the loan paid off.
                                                      contract to closing,                                                    the seller for moving
    With a Pre-Foreclosure, the bank may
be more willing to work with the seller since         making them compa-                                                      expenses, $1,500 to
the next option for the bank is to go through         rable to REO’s and Traditional Resales.           the bank for processing the short sale, and
the cost, time and hassle of a foreclosure pro-           Here’s how the new program is de-             even $1,500 for any second lienholders to
ceeding. You’ll find that in most Pre-Foreclo-        signed to work...                                 forgive their liens.
sures that the seller has already walked away             As soon as a short sale listing is taken,         IF all of this works according to plan,
from the home and it will be sold AS-IS, much         the seller completes the Short Sale Finan-        then short sales can be treated just like any
like a full foreclosure.                              cial Package and has it submitted to the          other bargain home purchase, without the
    Approximately 20% of our current mar-             bank. The bank then starts working on the         dread of a multi-month waiting period from
ket is Shorts Sales. If you have the time, they       file immediately, including ordering the          contract to closing.
can be worth the trouble. But remember, the           BPO so the value can be established, even             With so many short sales on the market
bank has the final word on what the price will
                                                      before an offer is received.                      these days, here’s hoping that this new plan
be, not the seller.
                                                                                                        DOES work!

                                                                                    (619) 370-6114 – San Diego Foreclosures Magazine – 11
(5) Steps to Owning a Home
   No matter what type of home you buy (REO, short sale, or traditional),
the homebuying process is essentially the same. Understanding the flow
of events will make you feel more secure and confident with the process.

(1)                                         Searching
                                            for Homes                                   (3)
Preparing                                         (Approximately seven to 30 days,
                                                                                        Making &
                                            depending on your time schedule and
to Buy                                      dedication to the cause.)
      (One to two days for the Pre-Ap-            One of the greatest advantages you
proval, or as little as a couple of hours
for some people.)
                                            have as a buyer is you can get all the      Offers
                                            services of real estate professionals for        (Approximately 3-5 days)
      Just like any endeavor, being pre-    FREE. We can use all of our resources            Being prepared, with your loan in
pared can make the rest of the process      to search for properties that meet all of   place and your expectations in line, will
easier. This preparation includes getting   your wants, needs and qualifications.       put you in a better position to make a
pre-approved for your mortgage loan,              Since all REO’s and short sales are   decision once the right home comes
finding out what price range you CAN        in our Multiple Listing Service (MLS),      along. Most buyers, especially first-tim-
afford, and what areas and home fea-        we can find every home that’s out           ers, agonize over the decision to make
tures you’re interested in.                 there, so spending all those hours on       an offer or not. Hesitating could mean
      A lot of people start with the home   the computer – doing our work for           losing the home or having to enter into
first, by going online and doing some       us – will not find you anything special.    a multiple-offer situation.
fantasy shopping. This is fine, but don’t   In fact, you will follow a lot of dead           Banks don’t play the second-guess-
get too excited about any particular        ends since so many of the public home       ing game of “Did we underprice the
home or area until you’ve completed         sites offer only limited information and    home? If we just wait, maybe we can
the loan pre-qualification process. It’s    search options. Many of the homes you       get in a better offer.”
completely free and with no obligation,     see on these sites will either be sold,          If your offer is the only one submit-
so there is no reason not to get it done.   under-contract or contingent sales, all     ted, they will negotiate with you. If
      All you have to do is either:         of which are off the market.                more than one offer comes in, they will
      a) Fill out the Pre-Qualification           Our searches will contain only        ask for “Highest and Best” offers from
Worksheet on page 23 and then call us       homes that are currently available for      all parties and pick the best one for the
direct at (619) 370-6114 and go over        sale and will be the most up-to-date        bank. There is no emotion here.
the information in person. It only takes    you can find.                                    Your agent at Integrity is very ex-
about 5 minutes.                                  And since timing is very important    perienced with the offer-and-negotiating
      b) Go online to SDForeclosures-       when shopping for REO’s, you will           process. That’s what we do. You will and complete our Loan          receive DAILY email updates of all new      not be alone in this process.
Pre-Qualification Worksheet. When           listings and price changes so you can            Just have the right mind-set, and
complete, just click “submit” and we’ll     stay ahead of the curve. The early bird     be committed to purchasing a home,
take it from there.                         does find the best deals when it comes      because when you tell us this is the
      Once we have your basic informa-      to REO’s.                                   one, Integrity will do everything we can
tion, we’ll go through it and call you                                                  to make it happen for you.
back with the results. This is the first
step to buying a home – any home –           Important Note:
and like I said earlier, it’s completely
                                                 No bank will consider your offer without a Pre-Approval Letter from
free and with no obligation. From this
information, we will be able to target
                                             a mortgage lender, or proof-of-funds for a cash purchase. Without proof
your home search to those homes you          that you can buy, you’re just a tire-kicker in the eyes of the bank.
CAN afford to purchase.                      GET PRE-APPROVED – FIRST.
12 – San Diego Foreclosures Magazine – (619) 370-6114
                                                                                           Cast of

                                                                                                As you dive deeper into the home-
                                                                                           buying process, you’ll hear the names
                                                                                           of various individuals thrown about as if
                                                                                           you’re supposed to know who they are
                                                                                           and what they do. This list should help

                                                                                           you sort out this cast of characters – all
                                             Going                                         professionals working to help get you
                                                                                           into a home...
                                             to Closing!
                                                  (1-3 hours)                              The Realtor®
The In-Escrow                                     This is what we have all been
                                             working towards – the closing on your
                                                                                           This is the real estate agent you’re work-
                                                                                           ing with, a state-licensed professional
Period                                       home!
                                                  This will take place at a title/es-
                                                                                           and member of the National Association
                                                                                           of Realtors®. Your Realtor is the quarter-
     (Approximately 30-40 days.)
                                             crow company, real estate attorney’s          back of the transaction and is the first
     Once you have an accepted con-                                                        person you should always go to for an-
tract a lot of things start happening.       office or at the office of one of the Re-
     All the title work is done on the       altors involved. It’s now when you will
home to check out the chain of owner-        sign your final loan documents which          The Loan Officer
                                             makes it all official.                        This is the person who is tasked with
ship and to identify all liens against the
                                                  Congratulations, you are now a           getting you the money to buy your home
property.                                                                                  and is your main contact with your mort-
     All inspections take place, including   homeowner!
                                                                                           gage lender.
the Home Inspection, Appraisal, and the
Termite Inspection.                               It’s important to note that none         The Loan Processor
                                             of this can happen until you decide to        While the Loan Officer gets all the glo-
     Your loan gets fully approved. You
                                             make the call. Once you do, there will        ry, it’s the Loan Processor who does
see it’s not just you that has to qualify                                                  all the detail work. This person collects
for the loan; the home does too.             be a whole team of realty and mortgage
                                                                                           your loan qualifying information, details
     Your Homeowner’s Insurance is           professionals who will snap to atten-         about the property and all the required
obtained.                                    tion and go to work for YOU. And as a         disclosures, and then packages it up and
     And any and all repairs that are        buyer, most of these services are FREE.       sends it to the underwriter at the mort-
negotiated are completed.                         So make that call today. It costs        gage lender.
     This is a busy time, but mainly for     nothing to try.                               The Underwriter
third-parties involved in the transaction.                                                 After reviewing your loan application and
It may seem like nothing is going on,                San Diego Central                     all supporting documentation, it’s the
but believe me, there is a lot happening                                                   Underwriter who will decide whether or
behind the scenes.
                                                               370-6114                    not you get your loan. This person is the
                                                                                           Supreme Being in the mortgage transac-
     Then once all the parts are in
                                                          or go online to:                 tion. go to closing!
                                                       The Appraiser
                                                                                           If you’re financing your purchase, it is
                                                                                           the Appraiser who will determine the

   Do you want to be a                                                                     property’s true value based on compa-
                                                                                           rable sales in the area. It doesn’t matter
                                                                                           what the buyer and seller agree to, the

   Real Estate Investor?                                                                   final value is up to the Appraiser.
                                                                                           The Escrow Officer
                                      Buy low, sell high. That’s the way to                The Escrow Officer/Company researches
                                                                                           the title to the home, finds all liens against
                                   do it! Find, fix and flip. With our low prices          it and issues title insurance at closing to
                                   these days, it’s a real possibility that you            guarantee you clear ownership. It’s also
                                   could make some serious money with                      the place where the final loan documents
                                   rehabs. And there are literally thousands               are sent for your closing.
                                   of foreclosures out there just begging for              The Inspectors
                                   some fix-up.                                            Traditionally there are two inspections
                                                                                           done on your home, the Home Inspec-
                                      So if you’re at that point in your life –            tion and the Termite Report. The Home
                                   and your finances – that you’re looking to              Inspection is optional, but is the com-
                                   pick up some bargain income-producing/                  prehensive three to four hour inspection
     San Diego Central             properties, CALL US!                                    covering all aspects of the home. The
                                                                                           Termite Report is looking for dryrot, ter-
                370-6114              We’ll be more than happy to help make                mites and other factors that can damage
                                   you the next Real Estate Millionaire!                   the structure of the home.

                                                                         (619) 370-6114 – San Diego Foreclosures Magazine – 13
                                           Y ou are about to make the largest purchase of your life. Yet how do
                                       you know the TRUE condition of the property – and whether or not it’s
                                       worth what you’re paying? These are very good questions. Let’s check out
                                       some of the basic requirements and inspections every homebuyer should be
                                       aware of.

                                           The Appraisal – (Determining Value)
                                            The property will have to be appraised to determine the value of the home as
                                       well as its general condition. In recent months, appraisers have become very con-

                                       servative with their values, so you shouldn’t have to worry about getting an inflated
                                       price. Also, most lenders and loan programs will not let you buy a home that needs
                                       a lot of repairs to make it habitable. The appraiser has the final say in how much
                                       the home is worth and this will determine how much of a loan you can get for the

                                            Even if you’re a cash buyer, we always recommend you get an appraisal, a title
                                       search and a survey on every property you buy. The worst thing is to buy a home
                                       that you’ll have problems selling in the future because of some issue you could have

            Look at
                                       avoided from the beginning.
                                            Appraisals run between $400 to $500 and are assigned through the lender.

                                           The Pest Control Inspection
                                            It’s always a good idea to have an inspection for any wood-destroying organ-
                                       isms, such as termites and dryrot, prior to closing. In fact, if you use VA financing,
                                       the inspection – and a clearance of all “infestations” – is required.
                                            Inspections costs about $85-$125 and are definitely worth the price.

                                           The Homebuyers’ Inspection
                                            This is the biggie! A Home Inspection is always highly recommended on any
                                       property you purchase (but is usually NOT a requirement for financing). This is where
                                       a licensed home inspector goes through the property from top to bottom, checking
                                       the plumbing, electrical system, appliances, roof, and much more, and then provides
                                       you with a report as to the findings of the inspection. Inspections usually run three
                                       to four hours, so come prepared for some down-time while the inspector does his
                                       thing. At the end, the inspector will go over all his findings, as well as a few good
                                       tips about being a homeowner.
                                            Also, most home inspections are a “contingency” on the offer, meaning if you
                                       find something out about the home that makes you not want to buy it, you can back
                                       out of the transaction at this time.
                                            These inspections run anywhere from $200 to over $400, depending on the size
                                       and age of the home.

                                           Home Warranty Plans
                                            Home Warranty Plans are basically limited insurance coverage against anything
                                       going wrong with the major systems of the home for a period of a year after pur-
                                       chase. They are designed to give the buyer peace-of-mind – and assurance – that
                                       any unforeseen problems after closing will be taken care of. After paying a modest
                                       deductible (around $75) these plans normally cover the plumbing, electric, heat/air
                                       and the built-in appliances, up to the limits of the warranty.
                                            Most REO’s do not come with a Home Warranty Plan, although we highly recom-
                                       mend that you purchase one on your own if the seller is not offering one. On most
                                       traditional resales, we can usually negotiate to have the seller provide a warranty for
                                       the first year.
                                            Plans run about $400 to $500 and can be renewed year to year at a lower cost.

14 – San Diego Foreclosures Magazine – (619) 370-6114
                                        Dollar                                                     How To

                                                                                                Bargain Home
                                         Unless you have cash to purchase your bargain home, you will
                                         have to obtain financing from a mortgage lender. As a mortgage
                                         broker (as well as a real estate brokerage), Integrity can help
                                         you with this part of the transaction, too.

                                Here’s a quick summary of the options
                               homebuyers have for mortgage financing:
    For all homebuyers. FHA does requires a down payment of
at least 3.5%. Mortgage insurance is required, both an upfront        The type of financing, and the amount of down payment
fee that’s included in the loan, as well as a monthly payment.     required, will depend on your credit scores and on whether
Current rules allow the seller to pay all of the buyer’s closing   or not the home will be owner-occupied or is an investment
costs. FHA is now the most popular loan program available,         property. Investors will need a much higher down payment
since it has the lowest required down payment (except VA)          using the standard loan programs.
and is open to all buyers who qualify.

                                                                      What if you have CA$H?
   VA                                                                 Then you are in the driver’s seat.
   Simply the best loan program around – but only available to        Cash talks, but you should still do your homework. Always
veterans of military service and active-duty personnel.            have an appraisal done on the home, as well as a title search,
   VA is currently the ONLY major loan pro-                                       survey and pest control (termite) inspection.
gram that allows for NO MONEY DOWN and                                            And to find out the true condition of the prop-
the seller can pay ALL of the buyer’s closing                                     erty, hire a home inspector to go completely
costs (if negotiated).                                                            over the home, top to bottom.
   See our exclusive military section on pages                                        Without a lender looking out for you – and
18-26 for more details, as well as the special                                    for themselves – it’s all up to you and your
advantages military personnel have when pur-                                      Integrity Realtor to make sure everything is
chasing a home.                                                                   done right.

   Conventional Loans                                                                What a lender looks for in a
   In the past, conventional financing was                                           borrower
the most popular, but since it was also at the                                         Lenders evaluate borrowers to determine
root of the mortgage melt-down through it’s sub-prime loan         “risk” to the lender and what the chances are of getting paid
offshoots, changes to conventional programs have restricted        back the money they lend under the agreed upon terms. To
the qualifying requirements and raised down payments to 5%,        do this, they will look at your debt, income and credit.
10%, 20% or more, depending on your credit score.                      They will be looking to see that your the total required
   Also, private mortgage insurance (PMI) is required for loans    payments on all your debt, including the new house payment,
with less than 20% down, and PMI is very expensive.                is not more than 40% to 50% of your total before tax in-
                                                                   come. Then they will look at your payment history with other
   Most buyers are finding FHA to be the best way to go            creditors. You credit doesn’t have to be perfect – very few
(except for VA-eligible buyers), unless you want to purchase a     people have perfect credit – but they will be looking for any
high-priced home, beyond the limits allowed with FHA (jumbo        bad credit to be isolated to a particular time or incident and
loans).                                                            it must be fully explained. Lenders will check the stability of
                                                                   your income and the likelyhood that it will continue.

                                                                       (619) 370-6114 – San Diego Foreclosures Magazine – 15
                                                        starts with

      You need to have that virtual
    suitcase full of money ready &
     waiting when you find a home.                      LOAN
          We don’t want to keep harping on this subject, but this is the single-most important FIRST
          STEP you need to take before you look at your first home on the internet, tour your first prop-

          erty in person – or before you get your hopes up...

          PRE-QUALIFY for Your LOAN!
          NO Seller, whether it’s on a foreclosure, short sale, new construction or traditional resale, will
          seriously consider your offer UNLESS it’s accompanied by a PRE-APPROVAL LETTER from a
          mortgage company.

          Sorry, that’s just the way it is.
          Since lenders are constantly changing their qualifying requirements, no seller will take you seri-
          ously unless you’ve had a mortgage professional look at your credit, work history and have
          completed a debt-to-income analysis.

          And no Realtor® is going to spend the time with you unless they’re sure you can buy.

          And why wouldn’t you want to know this, too?
          Your time is valuable. Don’t waste it spending hours on the internet looking at homes, or out
          touring neighborhoods, until you know what you’re qualified for...

             There are two ways to get your Pre-Approval Letter...
             1) Fillout the Pre-Qual Worksheet on the next page and then call (619) 370-6114 or...
             2) Go to and complete our online Information Worksheet.

16 – San Diego Foreclosures Magazine – (619) 370-6114
                             Your Loan Pre-Qualification Worksheet
Please complete this form as best you can so we can do the fastest and best pre-qualification for your mortgage loan. It’s ex-
tremely important for you to know exactly how much of a loan you can qualify for and if there will be any problems with your
credit, debts or income. Our Pre-Qualification is FREE, CONFIDENTIAL and with NO OBLIGATION.

                                                                          Once you have completed this form...
                   Please note:
We provide a FREE credit report                          CALL:   (904)
                                                                       307-6114 for a live, over-the-phone pre-qualification
   (w/scores) & credit analysis                          EMAIL:
         with every completed                            ONLINE: You can also find this form online at:
  Pre-Qualification Worksheet!                         

          Your Basic Information
Your Name: ______________________________________________ Social Security # (for Free Credit Analysis) _______________________________________________

Name of Spouse: _________________________________________ Social Security # (for Free Credit Analysis) _______________________________

Current Address: _______________________________________________________________________________________________________

Main Phone Number: _______________________________________ Secondary Phone Number: __________________________________

Email Address: ________________________________________________________ Best time to contact you ________________________

Are you a Veteran or Active Duty Military? _____________ Are you currently working with a Realtor? ________________________

Are you working with a lender? ________ Number of children living at home: ______________ Their ages: _____________________

          Your Employment/Income/Debts
Your Employer: ______________________________________________________ Time on Job ____________ Time in Field ___________

Spouse’s Employer: __________________________________________________Time on Job _____________ Time in Field ___________

Your Gross Monthly Income (Total–Before Taxes or Any Deductions) ______________________________________________________________

Spouse’s Monthly Income        (Total–Before Taxes or Any Deductions)   ________________________________________________________________

Any other income?     (please detail)   __________________________________________________________________________________________

Do you pay child SUPPORT?________________ How much?________________________________

Do you pay child CARE? ___________________ How much per month? _____________________

How is your credit history? Good _________ Average _________ Poor __________

Explain: _______________________________________________________________________________________________________________

Do you currently own a home?_________________ How much do you pay for your mortgage? ________________________________

How much do you pay for rent? ___________________________ When does your lease expire? ________________________________

          Your New Home
What area of town are you looking to live in? ____________________________________________________________________________

What features are you looking for in a home? (bedrooms, baths, etc.) _____________________________________________________


What payment would you be comfortable with? __________________________________________________________________________

                                                                                   (619) 370-6114 – San Diego Foreclosures Magazine – 17
            You’ve heard that the 3 MOST IMPORTANT things
                       to look for in a home are:
          1) Location 2) Location 3) Location
        Well here are the 3 SMARTEST things a potential
   Bargain Home Buyer SHOULD do before purchasing a home:

                   1) PRE-Qualify!
                   2) PRE-Qualify!
                   3) PRE-Qualify!
        By PRE-Qualifying for your Home Loan FIRST, YOU WILL:

Determine the TRUE price of the home YOU CAN afford.

Be able to identify neighborhoods YOU CAN live in for the price you qualify for.

Eliminate frustration and disappointment in finding (and falling in love with) a home that
is beyond your means. You will only look at homes YOU CAN afford.

Identify and resolve any potential credit, employment, income and debt-level problems
in advance so there will be NO SURPRISES later on.

Have incredible BARGAINING POWER with sellers when we go out looking for a home.

Have a feeling of confidence and security when making an offer that the transaction
WILL go through and YOU WILL become owners of the home you’ve selected.

        YOU CAN be PRE-QUALIFIED for a Home Loan FREE of CHARGE,
              over the phone and with no obligation by calling...

                 or go online at:

           Pre-Qualifying – It’s a Great Place to Start!
                  San Diego Central Real Estate
                            – Real Specialists for Real People –
                                You have no money?
                                             No Problem!
                                               Integrity Presents...

                                               The Amazing
                                                VA NO-NO
        Here’s the simple truth:
       If you’re a Veteran or Active Duty Military, you                 CAN buy a home for NO MONEY DOWN
    and pay NO CLOSING COSTS.*
       This is called a VA No-No, and San Diego Central Real Estate specializes in writing and
    negotiating VA No-No offers that are accepted.
       The ability to buy with no down payment is one of the best features of a VA loan. In fact
    today, ONLY VA offers loans for No Money Down.

       But what about closing costs?
       VA allows the seller to pay all of the buyer’s closing costs – if your Realtor negotiates for
    them to do so. We get so frustrated when we hear of a veteran or military serviceperson who
    bought a home and had to pay closing costs. This was simply because their agent either didn’t
    ask for the costs to be paid or didn’t know how to negotiate the transaction properly.
       With buyer’s closing costs on the average transaction running between $5,000 to over $9,000,
    getting your costs paid is a pretty big deal. Don’t pay more than you have to!

        With over 23 years experience negotiating VA NO-NO offers that ARE accepted, San Diego
    Central is your number one source for all things VA. In fact, if you follow our offer recommenda-
    tions and use us as your Realtor (and our recommended VA Mortgage Brokers/Lenders), we’ll
    virtually Guarantee* you a VA NO-NO. That’s pretty amazing!
                                        To get started purchasing your next home with a
                                         VA NO-NO through Integrity, just complete the
                                  Loan Pre-Qualification Worksheet on page 17 and call us at
                                                                Or go online to
                                                *Buyer must qualify for a VA loan with debt, income and credit.

20 – San Diego Foreclosures Magazine – (619) 370-6114
                                                     For Veterans &
                                                    Active Duty Military
                                              You have the VERY BEST
                               Homebuying Benefits Available to Anyone!
I f you are a veteran of military service, or are still currently on active duty,
you have the very best homebuying benefits package available to anyone.

By using VA financing, you are part of a unique group of homebuyers who
can purchase for NO MONEY DOWN! That’s right, every other category of
homebuyer will need a down payment. But not you (if you purchase under
$417,000)! Over the next four pages, you’ll learn more about your VA home-
buying benefits.

    Below are some bulletpoints highlighting the major
    benefits of VA financing – for those who qualify.

 n    NO Down Payment Required for purchases under $417,000.
 n    The Seller can pay ALL of your closing costs.
        (If the offer is properly negotiated by one of the VA specialists at San Diego Central!)

 n For veterans, you will need to have an honorable discharge and
        haved served a minimum of 180 days on active duty.

 n Available for Reservists & National Guard with the proper
        time-served minimums (call us at (619) 370-6114 for more details).

 n Program only available for owner-occupant purchasers.

 n Only you and your spouse may be included on the loan
        for qualifying.

 n You have higher qualifying ratios than most other types of loans,
        meaning you can buy more home with VA financing.

 n NO monthly mortgage insurance required.

 n You CAN literally purchase a home for NO Money out of your pocket
      at closing. This is our classic VA NO-NO (No Money Down & No Closing Costs).

                                                                            (619) 370-6114 – San Diego Foreclosures Magazine – 21
The Active Duty Advantage                                                                  In 2010, real estate
                                                                                          transactions with VA

Using Your BAH
                                                                                        financing were UP 50%
                                                                                          compared to the year
                                                                                       before. It seems everyone

to Buy a Home
                                                                                       has discovered how great
                                                                                         VA financing can be...

       n today’s economic environment,            Do yourself a favor. Go online to SDForeclosuresMagazine.
       having a job you can’t quit or be       com and search the Multiple Listing Service (MLS) for homes up
       laid off from is – priceless!
                                               to your equivalent BAH payment home price.
    Having said that, ALL active duty              You will be amazed at the number – and quality – of the homes you can afford
military should seriously investigate          with your BAH. There has never been a better time to be a home buyer, especially an
purchasing a home today. You are in the        active duty military homebuyer!
perfect position to buy, with low home             But the conditions will not always be this favorable.
prices, low interest rates, and a substan-         Don’t put it off. Call us (or go online). It doesn’t cost anything for you to find out
tial BAH.                                      if you can buy, and for how much.
    Homes prices have dropped to such              After all – wouldn’t you rather be an OWNER than a RENTER?
a low point that you’re doing yourself a
major disservice if you don’t buy a home           In January 2011, active duty military received a base pay increase – and your
now and let your BAH pay for it.                   BAH went up as well. Check out the BAH chart below:
    Just check out the chart on this page
to see how much of a home your allow-             2011 BAH Rates for San Diego:
ance would pay for. You will be amazed,           E-1 thru E-4   $1,941 per month
not only at how much you can buy,                 E-5            $2,019 per month
but also the                                      E-6            $2,196 per month
number of
                                                  E-7            $2,307 per month
homes that                                        E-8            $2,427 per month
are available                                     E-9            $2,592 per month
in your price
    And if                                        FYI: See how much of a home your
you’re in Base Housing, ALL of your BAH           BAH alone could pay for...
goes to your housing.
    If you’ve checked, you probably know          BAH-to-Home Purchase Comparison:*
that finding a home to rent for $2,196 (or        E1-E4          $1,941 = $268,000
less), for example, isn’t that hard to find.
                                                  E-5            $2,019 = $278,000
If you lived out in town, you’d at least
have an option as to how much of your             E-6            $2,196 = $303,000
BAH you want to spend for housing. Not            E-7            $2,307 = $318,000
in Base Housing. It’s all taken.                  E-8            $2,427 = $334,000
    Now this will really blow your mind:          E-9            $2,592 = $358,000
That same $2,196 would make the en-               (As a general rule, you can add another $15,000 to these prices when you factor in your mortgage
tire payment on a $303,000 home, and              i nterest and property tax deductions from your taxes – which you WILL get as a homeowner!
                                                  *Actual qualifying depends on your debt-to-income ratio and credit.)
give you literally hundreds of homes to
choose from! This is so much better than
it was even a few short years ago. Not            As you can see, if you’re active military and receiving BAH,
only has your BAH gone up, but prices          you’re ALREADY paying for a home.
and interest rates have dropped. (An E-5
in base housing is already paying for a
                                                  You might as well start owning what you’re already paying
$278,000 home. Even an E-4 is paying           for, either through BAH or rent...
for a $268,000 home. Incredible!)
                                                            Call San Diego Central today at

22 – San Diego Foreclosures Magazine – (619) 370-6114
                                                  All About Your
                                              VA HOMEbuying Benefits
                                      Need-To-Know Answers to the most-asked Questions
                                            about your military homebuying benefits

     Veterans & Active                              How much of a home can I                            to find out just how much of a home you can
                                                    buy with VA financing?                              afford.)
          Military:                                                                                            Now you see why we say VA is THE
                                                          Currently the maximum LOAN AMOUNT
     The VA Home Loan                               is $417,000 with no down payment required.
                                                                                                        BEST loan program for veterans and active
    Guarantee Program is                            You can buy higher, but you will have to bring
                                                                                                        duty m ilitary: You’re qualifying for more
                                                                                                        home, with no down payment and with the
   YOUR MORTGAGE LOAN                               in money to make up the difference between
                                                    the purchase price and the maximum loan
                                                                                                        possibility of not paying any closing costs.
         PROGRAM.                                   amount.
                                                                                                        This combination is hard to beat!
     The VA program was designed to help
veterans and active duty personnel purchase
                                                    What is a VA No-No?                                 But my credit isn’t so great.
homes in the simplest and most cost-effective
                                                    I’ve heard the term a lot.                          Can I still qualify?
manner. There’s no disputing the fact that VA
                                                                                                               There’s no getting around it – credit is
is the BEST homebuying loan program avail-                  One of the best features of the VA pro-
                                                                                                        important. Since the lender is loaning over
able, especially today when there are fewer         gram is the ability for the seller to pay ALL the
                                                                                                        100% of the value of the home – and you’re
mortgage options available. It’s also the only      buyer’s closing costs. When you purchase a
                                                                                                        not putting any money into it – the lender
mortgage program available that allows the          home, every buyer has a menu of costs which
                                                                                                        looks to see how well you pay your bills. You
buyer to purchase for no money down and to          must be paid. These costs include: lender
                                                                                                        don’t have to have perfect credit, just have
have someone else pay ALL the closing costs!        fees, money to set up your impound accounts
                                                                                                        “good” credit, with your “bad” credit (if you
In this article we’ll detail several of the major   for taxes and insurance, the VA appraisal fee,
                                                                                                        have any) isolated to specific periods of time
features of the program so you can better un-       title insurance and escrow fees, inspection
                                                                                                               and explainable. Call (619) 370-6114
derstand your benefits.
                                                                                                                to discuss your current credit situa-
     Additional information on specific
items or other questions you may have
can be obtained by calling San Diego
Central at (619) 307-6114.                                                                                     I’ve bought a home be-
                                                                                                               fore using VA financing.
Does the VA loan the                                                                                           Can I use my eligibility
money? Is VA the lender?                                                                                       again to buy another
      No. The VA acts more like an insur-                                                                      home?
ance company for the lender, guarantee-                                                                            YES! You can use your eligibility
ing a portion of the loan. All VA loans are                                                                     over and over again as long as you
made by outside mortgage companies,                                                                             have completely paid off the old VA
such as Integrity Home & Finance. But                                                                           loan. You can pay it off by either sell-
because of the guarantee, lenders are                                                                           ing the home outright and paying off
willing to loan you the money without a                                                                         the debt, or by refinancing the home
down payment.                                       What sort of income do I                            and using a different loan program such
                                                                                                        as FHA or conventional financing. There is
                                                    need to qualify? Can I qualify                      no limit to the number of times you can do
Who is eligible for VA home                         for more using VA?                                  this.
financing?                                                 Every loan program allows a certain
      Generally speaking, any person who has        percentage of your gross income to go to debt
spent at least 181 on active duty or who has        service, meaning the amount of your income
                                                                                                        Can I buy a newly-construct-
been honorable discharged is eligible. Reserv-      that goes towards paying your bills – including     ed home using VA financing?
ists who have completed a total of six years in     your house payment. VA allows the highest                 Yes you can. But you always need
the Selected Reserves or National Guard are         percentage of your income to go to debt ser-        your own representation, even when buy-
also eligible.                                      vice than any other loan program. Because           ing new construction. Remember, the site
                                                    more of your income can be used to qualify          agent works for the BUILDER, not for you.
                                                    for a payment, you CAN qualify for more home        So call us at (619) 370-6114 BEFORE
                                                    using VA. (Give us a call at (619) 370-6114         you sign anything at the new home site.

                                                                                    (619) 370-6114 – San Diego Foreclosures Magazine – 23
                                                                    How to get the
                                                                    most out of your
                                Secrets                               experience
        How to receive up to                         The taxes saved can amount to a pretty       belongings to.
        $400 MORE take-home                     good chunk of change, most often taken                 As a general rule, have the follow-
                                                in the form of a tax refund at the end of         ing items with you when you come house
        pay per month                           the year.                                         hunting:
      When considering the purchase of a             That’s one way to do it.                       • Your pay records for the past 2 mos.
first home, many people are shocked to               The other way, and often of more direct        • Tax records for the past 2 years
see how much more they’ll be paying for         benefit to you, is to take the deduction each       • Any/all divorce decrees/papers
housing each month compared to their cur-       month, in the form of more take-home pay            • Any child support documentation
rent rent payment. Many times, you could        by claiming more deductions at work. This           • All bankruptcy papers
be paying $200, $300 or even more than          can help offset some of your new mortgage           • All documentation showing recent debts
you’re paying to rent.                          payment by giving you more take-home                  you’ve paid off
      But are you really?                       pay.                                                • And any other items you feel might be
      It may appear so on paper, but a closer        In it’s simplified version, this deduction       important to get your loan approved
look at the tax benefits of homeownership       is figured by first calculating what your             Being prepared is the best way to make
will show that you may be paying just the       saved taxes would be, then dividing this          your homebuying experience a delight
same, and maybe even less, to own a home        amount by 12 to get your monthly savings.         rather than a chore.
than you’re paying now just to rent or to       Then you figure out how many additional
stay in government housing.                     deductions you can claim at work so you                   The BAH Advantage
                                                take home the amount of saved taxes. This                 Your Basic Allowance for Hous-
         Homeowners                             way, rather than getting a lump sum refund                ing (BAH) can cover most of
         Mortgage Interest/                     at the end of the year, you take a little bit             your mortgage payment.
                                                of your refund each month.
         Tax Deduction                               This method is perfectly legal and                 For those of you in Base Housing con-
     One of the greatest benefits of hom-       any tax account can help you figure the           sider that your Basic Allowance for Housing
eownership is the mortgage interest and         amount of tax savings and the required            (BAH) can go a long way to buying you a
property tax deduction you’re allowed to        deductions.                                       very nice home.
take on your income taxes each year.                                                                    If you’re in base housing now, you’re
     The deduction works by allowing you to              Important TIP When                       not receiving a BAH allowance, and when
subtract from your total income the amount               Planning Your Move                       you move, you have nothing to show for
of interest you pay on your mortgage, as                                                          the years of giving the government back
well as all your property taxes. Your taxes          Moving to the San Diego area and             your BAH payments. Yet if you purchase a
are then figured on this lower amount of        looking to buy a home as soon as you get          home, and allow your BAH to make most of
income.                                         here?                                             the payment, you will have something very
                                                      We l l h e r e i s a                        substantial to show for all the payments
              An Example                                                                          you’ve made.
       Gross Yearly Income                       VERY IMPORTANT
                (family)                         tip to help make that                                  For your information, a $2,019 to
               $50,000                           possible.                                        $2,196 BAH allowance would cover the pay-
        (taxes are taken out on                       #1 Do NOT pack                              ment for a home priced between $278,000
     this amount each pay period)               away your important financial, legal              and $303,000. And you’ll be getting the
   Interest/Property Tax for Year               and income records. A lot of our active           tax write-offs as well. Factoring in the tax
               $12,000                          duty clients have the military pack all or        savings, your BAH allowance is comparable
                                                most of the documentation we’re going to          to a $2,400 to $2,600 house payment. This
   New adjusted income tax base:                need to get you a loan when you come to           will get you a home between $331,000 and
             $38,000                            the area. Then we are stuck in a Catch-22.        $358,000!
                                                We can’t get your loan approved without                 So don’t be fooled. Just because you
      Taxes are now figured on                  the documentation – and you can’t get             aren’t being charged for base housing
     $38,000 instead of $50,000                 the documentation until you have a place          doesn’t mean you don’t PAY!
                                                for the military to deliver your personal         (continued on next page)

24 – San Diego Foreclosures Magazine – (619) 370-6114
                Where are                                                        Don’t you think it’s about time you
                                                                                 started spending...
                                                                                             YOUR money for
            Rent Payments
                                                                                             YOUR benefit,
                   Going?                                                                    instead of your landlord’s?

    Call San Diego Central Real Estate today and let us help you become YOUR own landlord!

                                                  buyer is serious about purchasing the home.             successful.
                                                  Upon acceptance of the offer, this money is                  At San Diego Central, we accom-
                                                  placed into a trust account and held there              plish this with a “win-win” approach; the
                                                  until closing, at which time it’s refunded to           BUYER wins because they get in for NO
                                                  the buyer if the buyer has no costs to pay              MONEY, and the SELLER wins because
                                                  at closing. If, on the other hand, the buyer            they get a pre-approved buyer who can
                                                  arbitrarily backs out of the transaction with-          buy right now without having to come up
                                                  out cause, the seller can retain the deposit            with money for down payment and closing
                                                  as “liquidated damages.”                                costs.
                                                        Note: If for some reason you don’t qualify for
         Owning–Cheaper                           the loan, or a previously unknown condition about the
                                                  property shows up while under contract that makes
                                                                                                               We hope this article has given you
                                                                                                          a few things to think about when weigh-
         Than Rent?                               you not want to purchase the home, you will get the
                                                                                                          ing the decision whether or not to buy a
                                                  deposit refunded.
     Very few people can dispute the fact                                                                 home. There are a number of very compel-
that, over the long-term, homeownership                                                                   ling reasons to buy, and very few (if any)
is often cheaper than rent.                            The VA Appraisal                                   against home ownership. Is it any wonder
     When you factor in your interest/prop-            The VA appraisal fee for a single family           that most wealth in America is based on
erty tax deduction, home appreciation (as         residence is $425. This fee is paid after the           real estate?
the property goes up in value over time) and      offer has been accepted and the appraisal is                 Your family deserves a home of their
principal pay-down (as you payoff your loan       ordered from the Veterans Administration.               own.
over the years), you can see why owning                                                                        YOU deserve a home of your own.
real estate is the number wealth-builder in            The appraisal and earnest money de-                     Now it’s your turn to get a piece of
the country.                                      posit usually totals $925.                              the American Pie!
     So why are you still renting?                   In a successful VA No-                                    And there’s no time like the present!
                                                  No offer, all of your upfront
                                                  money is refunded at the
   What part of “NO”                              closing.
 don’t you understand?
                                                       Closing Costs/
        – A Closer Look                                Pre-Paids
       at the VA No-No –                               If the seller accepts a VA No-No offer,
                                                  they are agreeing to pay all the buyer’s
     VA No-No’s are great for eligible VA         closing costs and pre-paids ( prepaids are
buyers because at closing it will have cost       the tax and insurance impounds).
you NO Out-Of-Pocket Money to buy.                     How much are the closing costs
There are, however, a few upfront fees in         and pre-paids on a VA?
every transaction that the buyer pays before           Generally speaking, the seller will be
closing – and then with a VA No-No, you get       paying anywhere from $4,000 to $8,000 (or
refunded at closing. These Fees include:          more) of the buyer’s closing costs, depend-
                                                  ing on the purchase price and loan terms.
                                                       As you can see, there is a major cost
  The Earnest Money
                                                  that a seller must take into consideration
                                                  when deciding whether or not to accept a
     The earnest money deposit is money           VA No-No offer. That is why the manner
the buyer puts up as a show of “good faith        in which the offer is written and presented   
and security” to the seller indicating that the   is so important. It takes a lot of experi-
                                                  ence with this type of negotiation to be

                                                                                     (619) 370-6114 – San Diego Foreclosures Magazine – 25
    Take the First Step...
    We at San Diego Central Real Estate would like to thank you for
    taking the time to read through our magazine and for learning
    more about YOUR military and bargain homebuying benefits. We
    sincerely hope this information has been helpful – both in your de-
    cision to buy a home, as well as in removing some of the mystery
    from the homebuying process.

    Buying a home is a major step in everyone’s life, yet one which
    has tremendous rewards...including a great sense of satisfaction
    and accomplishment for those who make the effort.

    And the First Step starts with a simple phone call to us.

    We are professionals at Military Homebuying & VA Financing.
    It is our job to make sure the transaction goes smoothly and with the least amount of hassle and
    stress. We have made – and will continue to make – a major commitment to our VA homebuying
    clients, providing a much-needed service – and ALL COMPLETELY FREE OF CHARGE!

    And since we SPECIALIZE in working with Veterans and Active Duty Military...
            ...we have to do it better than the other guy!

    And we do. Our record of successfully negotiating literally hundreds of VA No-No offers and putting
    Vets into homes for NO Money Down and NO Closing Costs speaks for itself.

    And we can’t overemphasize the fact: We do all this at NO COST TO YOU!
    Ask yourself this question:
    “Would you use just an average attorney to represent you
    – when you could get the BEST – for FREE?”
                                                                              A Completely
    The answer is obvious. It’s the same with VA homebuying.                 FREE Service to
    We are The Best.
                                                                            VA HOMEBUYERS
    We’ve made the commitment.
    Our entire success depends on servicing our Military Veterans and Active Duty homebuyers.

    Our entire success depends on YOU!

                                      So if you’re considering purchasing a home, either your first or
                                      a move-up home, please give us a call.
                                      YOU are our most important asset. We work for YOU!

                                      The Staff and Management of              In San Diego:
                                      San Diego Central Real Estate
26 – San Diego Foreclosures Magazine – (619) 370-6114
“Knowledge Without Action is Wasted!”
                                                            Stop Dreaming!
                                                            Now that you’ve taken the time
                                                            to learn all about the incredible
                                                            homebuying opportunities that are
                                                            available to you, the time to act is

                                                            Stop daydreaming about owning
                                                            a home. There has never been a
                                                            better time to make your dreams
                                                            come true....

             The next step is up to YOU.
    You can get the ball rolling by filling out the Pre-Qualification Worksheet
                    on page 17, or by visiting our website:
    • FREE online home search of ALL Multiple Listing Service (MLS) properties
    • More information about all the Bargain Homes available in the San Diego Area
    • FREE online loan pre-qualification – your FIRST STEP to purchasing a home!

                    Homes For Veterans
                                          ready for immediate
                                       download in PDF format

                                                 (619) 370-6114 – San Diego Foreclosures Magazine – 27
       San Diego Central’s
    Realty & Mortgage

  Y    ou have probably noticed by now that our San Diego Foreclosures Magazine (as
well as our sister publication Homes For Veterans Magazine) contains a lot of information
in them, all designed to provide you with more knowledge and education about the home-
buying process.
    You see, we believe that an informed buyer is a better buyer and that’s why we
choose to educate and inform our buyers as to the realities of buying a home and all
that’s involved.
    Purchasing a home is NOT an impulse buy. It takes time and dedication. And that’s
what San Diego Central offers. Full homebuying and financing services, without all the
emotion and high-pressure sales techniques you find with a lot of other realty companies.
  And all of our services to you are completely FREE of charge!

At Integity we provide Quarterback Services,
so you only need to go to one place to
get all your Realtor & Mortgage Services.
   • Full Multiple Listing (MLS) searches of ALL the homes you qualify to purchase,
     including properties listed by EVERY Real Estate Company in the area. There is no
     need to go anywhere else.
   • Full home tour services, allowing you access to every home in MLS.
   • Complete offer negotiation, along with all the paperwork and disclosures, making
     sure your offer is done legally and right.
   • Complete coordination of all aspects of the purchase, including inspections, title
     work, appraisal and more.
   • Complete mortgage services coordination for all types of loans, be it FHA, VA and
      Conventional Financing (services provided through our affiliate brokers).
   • And we’re LOCAL! Don’t trust the most important purchase of your life to out-of-
     town or out-of-state service people. You will sit down with us face-to-face and see
     if that level of trust and confidence is there for you.

                                  It’s all about Teamwork, Service & Trust.

                                           (619) 370-6114
                                                 Licensed California Real Estate Broker

28 – San Diego Foreclosures Magazine – (619) 370-6114
                                                 Our Home
                                               Seller Services
                                                     You know that San Diego Central
                                                    represents Home BUYERS. And as a
                                                  SELLER, that’s the one thing you need to
                                                            achieve your goal!

   Even though we talk almost exclusively about our homebuyer
services throughout this publication, Integrity also represents sellers. In
fact, doesn’t it make sense to list with a company that actively solicits
BUYERS – the one ingredient you need to get your home sold?

    And with our understanding of the short sale process, as well as
traditional resales and advanced market-
ing techniques, we may be in a perfect
position to help you achieve your goal of
selling your home for a fair price and in a
reasonable period of time.

    Another great thing about our seller
services is that we are flexible with our
commission structure. Our commission
policy is not set in some corporate board-
room in New York or somewhere. As the
broker of the company, I can tailor a com-
mission structure that will work for both of us, possibly saving you thou-
sands of dollars over our competition.

   But enough said. Only our actions will prove us out.

    If you would like to speak with us about possibly listing your home for
sale, simply give us a call. They’ll be no pressure, no hard-sell. We’ll just
talk for awhile, run a few numbers and see if we’re a good fit.

   Call (619) 370-6114.
   I’m looking forward to hearing from you.

   Jonathan Aronson, Realtor
   San Diego Central Real Estate

                                                           (619) 370-6114 – San Diego Foreclosures Magazine – 29

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