IT IS TIME TO BUY A HOUSE

Now is the time to buy a house, if you have a job that pays a decent wage.

The banks are now offering amazing loan modifications in order to keep people in their houses. A recent modification that I saw forgave $100,000 of the mortgage and also forgave almost $20,000 in unpaid monthly payments. The loan was unpaid for 8 months. Even a year ago, the owner could have kissed his/her house good-by after missing 4 months or would have had to totally catch up on missed payments, late fees and attorneys fees in a lump sum payment in order to keep his/her home.

So the banks are not foreclosing, which means the good deals are going away.

TO GET THE GOOD DEALS. Tell a real estate agent with access to the local multiple listing to give you a list of bank owned properties in the areas you want to live. Look at every house on the list, inside and out. Decide on one of the houses and buy it if you can.

You can get a loan if the loan payment will be no more than 31% of your gross income. Get an FHA loan, if you can. There are very few approved FHA loan officers in California, so you may have to apply on the computer. FHA is offering 30 year fixed price loans, with 3% down. They are not very interested in your credit rating, but want you to have been employed for the last two years.

GOOD LUCK and enjoy your new home.