Fortunately, Seattle has not experienced the high number of short sales and foreclosures that the southern tier of states has. But if you know someone who is on the edge, here is some good information. These tables will tell you what the waiting period is, before you will once again be eligible for a Fannie Mae or Freddy Mac loan.

I'm not an attorney and this is not legal advice. Before you take one of these options be sure to consult with an attorney and probably an accountant. There is a lot more than a waiting period involved with these actions.

This table is only a guide. Fannie Mae and Freddy Mac are constantly changing their guidelines. You're welcome to call Lake and Company and talk to one of our agents anytime, but always remember that before you decide on one of the above scenarios, talk to an attorney.

In 1990, King County, Washington realizing that the ever-burgeoning population would need a larger more efficient sewage treatment system instituted a Sewer Capacity Charge for all new construction.

As Realtors, we get a lot of questions about the charge and who is supposed to pay for it. The reason  the charge was put only on new homes was because it was the new growth in the county that caused the need for the larger sewer system.  A case of government and good sense going hand in hand.

A home owner could pay the fee at one time, or have it amortized over fifteen years and have the amount added to their normal sewer bill.  Because it was a part of the monthly bill it was often forgotten as a separate charge. Sellers of homes built since 1990 often did not disclose that there was this extra charge attached to the property. A few years ago the NWMLS Forms Committee added a clause to the Purchase and Sale Agreement specifying that:

Charges and Assessments Due After Closing would either be assumed by the buyer , or would be prepaid in full by the seller at closing.

That calls attention to the Sewer Capacity Charge, as it is an assessment that is due after closing and escrow companies will handle the matter according to the choice of the parties to the agreement.

Ask your Realtor to research the sewer capacity charge on a property you might be interested in if it is less than 15 years old. Getting the seller to pay for it may save you a few thousand dollars.  The charge is $49.07 per month if paid over the 15 year term.  There is a discount if you can pay the Sewer Capacity Charge off early.  There is an online method to do so. Just follow the link above.

If you have any other questions any Lake and Company agent will be happy to help you. Just give one of us a call.

At the last Lake and Company office meeting, Ken Steiner of Home Street Bank was the guest speaker and delivered a terrific summary of the 203K loan program and the new Streamlined 203K program.

The Streamlined version is limited to cosmetic repairs and up to $35,000 worth of work. The standard version of the 203K plan covers foundation and structural work as well.

The major benefit of this type of loan is that the seller has no work order worries, and the buyer will have no after purchase expenses. Any work that needs to be done will be paid for by the proceeds from the buyer's loan, so long as the end product appraised value equals or exceeds the loan amount. The work is all done after closing. The buyer is then in possession.

So, you didn't want to buy a fixer, but the location of one is perfect for you. Go the 203K route. Or maybe you want a fixer. Contact a Lake and Company agent for further information. There are a lot of details but with our help and the help of a professional like Ken Steiner, you will find the process easy and rewarding.

This just sent to me by:

Rick Hubbert
Senior Mortgage Consultant
On Q Financial
WA Lic. 510-LO-37044
425-643-7000 PhoneUS Senators Near Deal On Extending Home Buyer Tax Credit

By Jessica Holzer, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- U.S.Senators are nearing a deal on a measure to extend the first-time home buyer tax credit through next April and expand it to some buyers who already own a home.

Under the deal, certain "step up" buyers who have lived in their current home for at least five years would also qualify for the tax credit, according to lobbyists close to the negotiations.

The deal comes amid heavy housing industry pressure to extend the tax credit, which is set to expire Dec. 1 unless Congress acts. The measure, which proponents hope to offer as an amendment to legislation extending jobless benefits, could receive a Senate vote this week.

Under the measure, the credit would run through April 30 of next year, though sales contracts in force by that date would be eligible as long as the deal closes within 60 days. The credit would amount to 10% of the sales price, with a maximum of $7,290. The current credit has a cap of $8,000.

To qualify, first-time home buyers must make no more than $75,000 a year or $ 150,000 for couples. For step up borrowers, the income caps are $125,000 for individuals and $250,000 for couples.

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So, it looks to me like it might be a good time to start thinking about a move up if you've been in your home for 5 or more years, or selling that home in the $400,000-$700,000 range to a move up buyer.