Forget Me Nots

Forget ME NOTS for home loans and mortgages 

Things to remember when applying for a home loan.

Check your credit and contact my mail or email any errors to correct. 

Make sure your funds are ready to wire. 

If you have money overseas

or in crypto currency you need to know what the time line is to cash

the money into United States dollars.

Make sure  your identification is current for notary.

Don't plan a vacation during the escrow period.

Know how to open your email daily during the process.

Familiarize yourself with docusign by watching some Youtube videos.

Keep a notebook of all the houses you like.

Know the price you can afford.

Understand the principle and interest payment as well as what

property taxes and fire insurance will cost.

Homeowner Associations are also another consideration.

HOA fees always increase and though you maybe don't have

to maintain certain home structures such as roof, the HOA

has to have enough funds for disaster and enough coverage

in the Master Insurance Policy. You also will need a HO6

policy

PreApproval Mortgage

{!Userc} Home Shopping Tips: Is Now the Time to Buy? How to get ready to make an Offer? What preapproval letter works best? Hi {!My Friends},   Some potential home owners are on the fence wondering if they should wait until next year, or start shopping for a home now. The good news is, when you do decide to buy a home, you start building equity immediately. Here are some things to consider before you start shopping for a home.   Check Your Credit Score Review a copy of your credit report (before the lender does) and make sure there are no errors. Get a mortgage report it's different than a consumer report. If you do find errors in your credit report, they can be disputed. Of course, a higher credit score will secure you a better interest rate. Map out how to pay down or pay off outstanding debt, if possible.   Have Your Documentation Ready When you apply for a mortgage, you will need: Proof of Identity – Have your government-issued ID or driver’s license, social security card and birth certificate or passport. Proof of Income – This includes at least one month’s paycheck stubs, unemployment payment records, and any other documentation of regular income such as alimony or bonuses. Tax Documents – Be ready to show your last two year’s tax returns, including W-2 and/or 1099 forms. Bank Statements – The lender will want to look at your banking activity for the last 60 days to know you can manage your down payment and closing costs with sufficient cash reserves. Monthly Debt Documentation – Have your paperwork in order to document student loans, car loans, credit cards, etc. to establish your debt-to-income ratio. If you have no credit history, utility bills or records of other regular payments may be used to help you qualify for a mortgage. Additional Assets – Have documentation ready to support any additional savings, stocks, bonds, securities, etc. Get Pre-Approval By having written pre-approval from a lender, you know exactly how much home you qualify for. This helps you manage your expectations – and when you do make an offer – the Seller will consider it to be more valid. We have a wide variety of loans to choose from. Give us a call to find out what program works best for you! (949) 784 -9699   Sincerely, {!User.FirstName}   C G Caroline Gerardo Barbeau NMLS # 324982 }

Bank Statement Loans - Mortgage for Self employed

 

NON QM Mortgages

BANK STATEMENT LOANS

Mortgages for Investment Properties

Mortgages for Self Employed Borrowers

• Non-QM loans are not required to meet the same requirements as qualified mortgages, which are insured or guaranteed by government agencies such as Fannie Mae and Freddie Mac.
• Non-QM loans can be a good option for borrowers who do not meet the requirements for a qualified mortgage, such as those with high debt-to-income ratios or irregular income.
• Non-QM loans typically have higher interest rates and fees than qualified mortgages.
• Non-QM loans are not as widely available as qualified mortgages.

Here are some additional details about the features available listed:

• 3, 12, or 24 months of bank statements: Lenders will typically require 3 months of bank statements for a non-QM loan, but some lenders may require more. The type of account (business or personal) and the deposits made will be reviewed carefully to make sure they are consistent with the borrower's income and expenses.
• Reserves: Lenders will typically require borrowers to have reserves equal to 12 or 24 months of mortgage payments. Reserves can be in the form of cash, investments, or other liquid assets.
• FICO mortgage middle score is used not your Credit Genie one
• Lenders will typically use the borrower's FICO mortgage middle score to determine the interest rate on a non-QM loan. The higher the score, the lower the interest rate will be.
• Other requirements: Non-QM loans may also have other requirements, such as a minimum down payment, a maximum loan-to-value ratio, and a maximum debt-to-income ratio.

If you are considering a non-QM loan, there are different rules guidelines and ins and outs to each different mortgage non qm lender. A number of NonQM lenders have gone out of business in 2023,

so it's vital to understand how strong the particular shop is to withstand this storm.

Business types are categorized. A business with many employees and large office

will have a higher expense ratio than a one person office from home. Sometimes

a CPA letter is required to explain the type or business or expenses.

Properties need to be in good condition.

1- 8 units

There are minimum loan amounts

These loans are securitized and sold to a different market investor than conventional loans.

Each wholesale shop has it's own rules.

You should also make sure that you understand all of the terms and conditions of the loan before you sign any paperwork. It is important to have an experienced Loan Officer explain every step

Here to answer your questions

Caroline Gerardo (949) 784 - 9699

NMLS 324982

California Tree Poppy white with yellow center Romneya coulteri Matilija...

Giant White California Poppy with Yellow Center

Bees love them

They dance in the wind like butterflies

Low water full sun, easy to grow as long as it doesn't freeze.

Grows all summer in your home garden with full sun.

Tips To Start Investing In Real Estate

Plan to begin investing in real estate. Get all the pieces organized first.

Learning curve to begin a course of action to invest in real estate is different for everyone.

I suggest you start with researching.

Read books such as:

The Book on Flipping Houses

How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started

Join online groups and ask questions. 

Talk with investors in your area.

Learn Construction Basics by going to the library and checking out several books. Youtube is also wonderful resource on how to rehab, fix a toilet, hang drywall, and just about anything. 

Learn how to search by location's crime, schools, trends, jobs, rents

Get preapproved for a Loan. Learn mortgage terminology. Improve your FICO score. Understand how title insurance works. 

Leveraging you ability to purchase real estate with a mortgage is a common way for real estate investors to purchase properties with less upfront capital. When you leverage a mortgage, you borrow money from a lender to finance the purchase of a property. The amount of money you borrow is typically less than the full purchase price of the property, so you only need to come up with a down payment.

There are several benefits to leveraging a mortgage for real estate investing. First, it allows you to purchase properties that you would not otherwise be able to afford. Second, it can help you to build equity in your properties more quickly. Third, it can provide you with a steady stream of income from rental payments.

However, there are also some risks associated with leveraging a mortgage. If you are unable to make your mortgage payments, you could lose the property to foreclosure. Additionally, if the value of the property decreases, you could end up owing more money on the mortgage than the property is worth.

If you are considering leveraging a mortgage for real estate investing, it is important to carefully consider the risks and benefits involved. You should also make sure that you have a solid financial plan in place to ensure that you can make your mortgage payments on time.

Here are some tips for leveraging a mortgage for real estate investing:

• Do your research. Before you start looking at properties, it is important to do your research and understand the risks and benefits of leveraging a mortgage.
• Get pre-approved for a mortgage. Getting pre-approved for a mortgage will give you an idea of how much money you can borrow and what your monthly payments will be.
• Find a good property. When you are looking for a property to purchase, be sure to find one that is in good condition and that has a strong rental demand. Location is the most important aspect of real estate, it is the one thing you cannot change.
• Make a down payment. The larger your down payment, the less money you will need to borrow and the lower your monthly payments will be.
• Have a solid financial plan. It is important to have a solid financial plan in place to ensure that you can make your mortgage payments on time.

If you follow these tips, you can increase your chances of success when leveraging a mortgage for real estate investing

C G

Caroline Gerardo

NMLS 324982

949 784- 9699

California Eviction Notices

 California Eviction Laws 

and Notice Time Frames

• 
  

There are three types of eviction notices that a landlord can give to a tenant in California.

• Rent Demand Notice: This notice is given to a tenant who has not paid rent. The notice gives the tenant three days to pay the rent or move out. If the tenant does not pay the rent or move out within the three days, the landlord can file an eviction lawsuit.  a (Cal. CCP §
• Notice for Lease Violation: This notice is given to a tenant who has violated a lease term. The notice gives the tenant three days to cure the violation or move out. If the tenant does not cure the violation or move out within the three days, the landlord can file an eviction lawsuit.  (Cal. CCP § 1161(3))
• Unconditional Notice to Quit: This notice is given to a tenant who has committed a serious offense, such as damaging the property or using the property for an illegal purpose. The notice gives the tenant three days to move out. If the tenant does not move out within the three days, the landlord can file an eviction lawsuit. (Cal. CCP § 1161(4)).

It is important to note that these are just the general rules for eviction notices in California.

There may be additional requirements or restrictions depending on the specific circumstances. If you are a landlord or tenant who is facing an eviction, it is important to speak with an attorney to get specific advice on your situation.

As an investor in residential rental properties California is one of the most restrictive states

towards landlords and generous towards tenants.

California has some of the highest monthly rentals in the United States.

California Coastal, Bay Area, Orange County, and Los Angeles County also demand

the highest residential real estate valuations.

DSCR Debt Service Ratio mortgage loans

A DSCR loan, or debt service coverage ratio loan, is a type of mortgage loan that is underwritten based on the cash flow from rent payments, rather than the borrower's ability to repay the loan. This makes DSCR loans a good option for real estate investors who do not have a lot of personal income. Some DSCR programs allow for moderate credit or FICO scores when they meet the other requirements. There are a variety of wholesale investors who purchase these loans. These are not hard money lenders. They are called Non QM lenders as the loans are not a Dodd Frank Qualified mortgage.

To qualify for a DSCR loan, the borrower must have a property that is generating enough income to cover the monthly mortgage payments, taxes, insurance, and any other associated costs. The lender will calculate the DSCR by dividing the monthly rent income by the monthly debt service. For example, if a property has a monthly rent income of $2,000 and a monthly debt service of $1,000, the DSCR would be 2.0.

DSCR loans typically have higher interest rates than traditional mortgages, but they can be a good option for investors who are unable to qualify for a traditional mortgage. DSCR loans can also be a good option for investors who want to purchase a property with a lower down payment.

Debt Service Ratio mortgage loans

Market rents determined and verified by lease agreement, deposit check at closing and the appraiser's rental survey which borrower pays for are used to compare against principle, interest, taxes, insurance. and HOA bills. Short term rental is not used. Interest only or Adjustable rate payment is adjusted to the full actual payment.

Here are some of the benefits of DSCR loans:

• They can be a good option for investors who do not have a lot of personal income.
• They can be used to purchase properties with only rents to cover the payments
• They can be a good option for investors who want to purchase properties in areas with high rental demand.
• They require less paperwork and headache.
• Long term thirty year loans are offered

Here are some of the drawbacks of DSCR loans:

• They typically have higher interest rates than traditional mortgages.
• They are ONLY for investment property not owner occupied.
• They may require the borrower to make a larger down payment.
• They may require reserves. Borrower has to show in checking, savings, and 60% of stock accounts enough liquid cash to cover ALL their bills for twelve or twenty four months. the amount of reserves is part of the interest rate available
• They are for a single borrower with lots of money but perhaps self employed tax returns that don't work for conventional loan types.

If you are considering a DSCR loan, it is important to speak with a qualified mortgage lender to determine if it is the right option for you. Feel free to call me 949- 784- 9699

This is not a commitment to lend

When you call please advise about:

property type, condition of property

property Class type

location, city, state

market rents

valuation/ sale price

how much cash you have in checking, savings, and stocks broken into different categories.

What you think your FICO score is

HOA Foreclosures and Liens

Homeowner Association Foreclosing

If you are delinquent on your Home Owner Association (also known as HOA) dues in California, the HOA must first offer you a chance to participate in dispute resolution. If you do not want to participate in dispute resolution, or if you are unable to reach an agreement with the HOA, the HOA can then record a lien on your property. The HOA must mail a notice of the lien to all record owners within ten days of recording the lien.

Here are some things to keep in mind if you are facing an HOA lien in California:

• You have the right to participate in dispute resolution with the HOA. This is an option if you believe that the HOA is mistaken about the amount of money you owe. You must provide written evidence in the form of cancelled checks you paid, credit card statements you paid, letters from HOA regarding monthly assessments, HOA legal fees, all correspondence. Create an excel sheet to show amounts due verses monthly payments. It might be useful to provide this information if lengthy a week before the meeting. Understand the HOA does not have to play Let's Make a Deal. You can have an attorney present. 
• You can also request to meet with the HOA board to discuss a payment plan. This may be a decent option if you are unable to pay the full amount of the lien immediately.
• If the HOA records a lien on your property, you will be responsible for paying the costs of recording the lien, legal costs, and interest. The amount will increase.
• The HOA can foreclose on your property if you do not pay the lien. Foreclosure can result in the loss of your home.

Before recording The HOA lien for delinquent assessments, the association has to offer and participate in dispute resolution under the association's "meet and confer" program. This does not mean they have to settle or accept any partial payments. They are just required to talk with you. (Cal. Civ. Code §§ 5900 to 5920, § 5660(e).) Under California law, you may also submit a request to meet with the board to discuss a payment plan. (Cal. Civ. Code § 5665.)

If you come up with a written agreement to catch up on the amounts due, the HOA records a lien on your property. (Cal. Civ. Code § 5675.) A notice must be mailed to all record owners no later than ten calendar days after recording. (Cal. Civ. Code § 5675(e).) This lien has to be paid if you sell or refinance. It grows with time.

The HOA can do a judicial or non judicial foreclosure. In California this is typically non judicial and faster. With a nonjudicial process, the foreclosure is subject to a 90-day right of redemption after the sale. (Cal. Civ. Code § 5715.) To redeem the property, you must pay all assessments in full, interest, attorneys' fees, and possibly the costs of repair. Order payoff and provide lump sum cashier's check or cash to the county recorder/accounting weekdays before the deadline. They are not open on weekends and holidays.  (See case Barry v. OC Residential Properties, LLC, 194 Cal.App.4th 861 (2011).)  https://casetext.com/case/barry-v-oc-residential-properties

With a judicial foreclosure the redemption period is: ninety days if the sale proceeds are sufficient to satisfy the debt (sale of property and costs exceeds the amounts owed). Or a year from sale closing date if the proceeds from the sale are insufficient to satisfy the delinquency. (Cal. Code Civ. Proc. § 729.030(a),(b).)

Your mortgage company might not be paid off. The HOA is in front of the mortgage even though they may have subordinated for you to get your loan.

this variety of pink Cerinthe or Honeywort reseeded from Purple Tear on my porch

ODTE Option Risks

 

ODTE options expire the same day they are purchased, and they offer traders the opportunity to make a quick profit or loss on the underlying security.

While 0DTE options can be a lucrative way to trade, they also carry a high degree of risk. This is because the trader has no time to react to changes in the market, and they can lose their entire investment if the underlying security moves against them.

In addition, the rise of 0DTE options has been linked to increased market volatility. This is because traders who are buying these options are typically doing so because they believe that the market is going to move in a big way. This can lead to a feedback loop, where traders' expectations of volatility lead to more volatility.

As a result of these risks, some experts are concerned that the rise of 0DTE options could pose a threat to market stability. They argue that if a large number of traders were to lose money on 0DTE options, it could trigger a sell-off that could destabilize the market.

However, others argue that the rise of 0DTE options is a sign of a healthy market. They argue that it allows traders to express their views on the market more freely, and that it can help to make the market more efficient.

Only time will tell whether the rise of 0DTE options will pose a threat to market stability. However, it is clear that this is a trend that is worth watching.

Here are some additional thoughts on the risks and potential benefits of 0DTE options:

Risks:

High risk of loss

Can lead to increased market volatility

Can be difficult to manage

Potential benefits:

Lucrative opportunities for traders

Allows traders to express their views on the market more freely

Can help to make the market more efficient

Draft 2

The rise of short-dated options, or options that expire within a few days, is a growing concern among market regulators and participants. These options are often used by traders to make quick profits on small price movements, but they can also magnify losses if the market moves against them.

In recent years, the daily notional volume of 0DTE options, which expire the same day they are traded, has surged to near $1 trillion. This is a significant increase from just a few years ago, when the daily notional volume of 0DTE options was only a few billion dollars.

The growth in 0DTE options trading has been driven by a number of factors, including the rise of online trading platforms, the increasing availability of margin lending, and the growing popularity of day trading. These factors have made it easier for traders to access and trade 0DTE options, which has contributed to the surge in volume.

The growth in 0DTE options trading has raised concerns among regulators and market participants about the potential for these options to destabilize the market. If a large number of 0DTE options expire in the money, it could force market makers to buy or sell large blocks of stock, which could lead to sharp price movements.

In addition, the high level of leverage used by many 0DTE traders means that even a small price movement can lead to large losses. This could lead to margin calls and forced liquidations, which could further destabilize the market.

Regulators are currently considering a number of measures to address the risks posed by 0DTE options trading. These measures include limiting the amount of leverage that can be used to trade 0DTE options, requiring traders to post additional margin, and restricting the types of 0DTE options that can be traded.

It is important to note that 0DTE options are a high-risk investment and should only be traded by experienced traders who understand the risks involved. If you are considering trading 0DTE options, it is important to do your research and understand the risks before you trade.

The rise of short-dated options, also known as 0DTE options, is a trend that has been gaining traction in recent years. These options expire at the end of the trading day, which means that they have a very short lifespan. This makes them a high-risk, high-reward investment, as traders can potentially make a lot of money if they are correct in their predictions, but they can also lose a lot of money if they are wrong. financial service companies, banks, mortgage lenders use these as hedge and make short term gains.

•  The rise of short-dated options threaten market stability.

• Daily notional volume of 0DTE options is near $1 trillion.
  Small banks in trouble.
  Are we headed for another Volmageddon?
  Increased instances of dynamics in derivatives markets bleeding into their underlying assets, as in stocks. 

• The main culprits in 2018 were exchange-traded funds designed to pay investors the inverse of equity volatility

There are a number of reasons why 0DTE options have become so popular. One reason is that they are relatively easy to trade. Unlike longer-dated options, which can be more complex to understand, 0DTE options are relatively straightforward. This makes them a good option for traders who are new to options trading.

Another reason for the popularity of 0DTE options is that they can be used to hedge against risk. For example, if a trader is worried that the market is going to go down, they can buy a put option, which gives them the right to sell the underlying security at a certain price. This can help to protect the trader from losses if the market does indeed go down.

However, 0DTE options also come with a number of risks. One of the biggest risks is that they are very volatile. This means that their prices can fluctuate wildly, which can make it difficult to predict how much money you will make or lose. Another risk is that 0DTE options are very illiquid, which means that it can be difficult to buy or sell them quickly. This can be a problem if the market suddenly moves against you and you need to get out of your position quickly.

Overall, 0DTE options are a high-risk, high-reward investment. They can be a good way to make a lot of money if you are correct in your predictions, but they can also lead to significant losses if you are wrong. It is important to understand the risks involved before trading 0DTE options.

The rise of 0DTE options has raised concerns about the stability of the market. Some experts believe that the increased use of these options could lead to a market crash. They argue that the large amount of leverage involved in 0DTE options could magnify losses if the market were to suddenly move against traders.

Other experts are more optimistic about the impact of 0DTE options. They argue that these options provide a valuable tool for traders to hedge against risk. They also point out that 0DTE options are only a small fraction of the overall options market.

It is still too early to say what the long-term impact of 0DTE options will be on the market. However, it is clear that these options are becoming increasingly popular. It is important for traders to understand the risks involved before trading 0DTE options.

Only time will tell whether the rise of 0DTE options will pose a threat to market stability. However, it is clear that this is a trend that is worth watching.

Here are some additional thoughts on the risks and potential benefits of 0DTE options:

Risks:

High risk of loss

Can lead to increased market volatility

Can be difficult to manage

Potential benefits:

Lucrative opportunities for traders

Allows traders to express their views on the market more freely

Can help to make the market more efficient