4th Quarter 2022 Volume 9 Issue 3 • • AHT• N K YOUTO OU R 2022PRES I D E TN • •
luncheon
kogi
•
IN THIS ISSUE: Meet and greet c.a.r. expo
+ aor award
food truck
FEBRUARY
JANUARY
2022 LEADERSHIP OF GREATER DAOR
Board of Directors:
Jennifer Avellan, President
Jesus Guerra, President-Elect
Jose Perez, Vice President
Jeff Worthy, Treasurer
Jeanette Baumann, Executive V.P.
Directors:
Edwin Acevedo
Lourdes Galvez
Maria Lilley
Monica Rivera
Mireya Ruiz
Carrie Uva
Tyler Wirth
Immediate Past President:
Michael Berdelis
Greater DAOR Chaplain:
Tom Moore
C.A.R. State Directors:
Michael Berdelis, Jennifer Avellan, Jesus Guerra, Jose Barrios, Mario Acevedo, and Edwin Acevedo
N.A.R. National Directors:
Michael Berdelis
Greater DAOR Staff
Jeanette Baumann, EVP - evp@DAOR.com
Customer Care Department
Erica Ochoa, customercare@DAOR.com
Eric Reynoso, communications@DAOR.com
Laura Yanez, outreach@DAOR.com
Membership Department
Julie Sartor, julies@DAOR.com
Kayla Baumann, membership@DAOR.com
Page 1 Meet & Greet
Page 2 C.A.R. Expo
Page 3 Feed the Homeless / A.I.A.
Page 4 Food Truck Day
Page 5 3rd Qtr Spotlight
Page 6 New Member Orientation
Page 7-8 Luncheon + AOR
Page 9 Sliding Home Sales Article
Page 10 Veterans Day Tribute
Page 11-12 Open House / Showings
Page 13-15 Move Past Student Debt
Budget & Finance Committee
Rowena Dominguez, Chairperson
Professional Standards Committee
Lina Salgado, Chairperson
LCRC Trustees
Jackie Funk, Chairperson (20-22)
Oversight Committee
Ruben Sarinana Jr, Chairperson
Affiliates In Action Committee
Ozzie Carranza, Chairperson
Scholarship Committee
Christine White, Chairperson
Grievance Committee
Daniel Andrade, Chairperson
Membership / MLS Technology Committee: Mario Acevedo, Chairperson
REALTORS Advocating for Political Progress
Josue Barrios, Chairperson
REALTOR Community Relations Committee
Vicki Spearman, Chairperson
LGR Community
Eric Pierce, Chairperson
Page
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COMMITTEES ON THE COVER GREATER DOWNEY REALTORS ASSOCIATION OF 12073 Paramount Blvd Downey, CA 90242 Phone: (562) 861-0915
(562) 923-9995 www.DAOR.com
- Friday, 9am-5pm
9am-1pm
9 - Issue 3
publication is printed quarterly, delivered March, June, Spetember, & December Education Center 12069 Paramount Blvd Downey, CA 90242
Fax:
Monday
Saturday,
Volume
This
6
Where to Focus Your Energy as Home Sales Keep Sliding
By: REALTOR® Magazine Staff
As home sales continue to slide, remember that the market isn’t as bad as it may seem(link is external) and you can guide your customers through a downturn(link is external). With existing-home sales down 5.9% month over month in October—and a whopping 28.4% from a year earlier—according to the National Association of REALTORS®, real estate pros are facing a slow winter season. But there’s personal and professional development you can focus on during the housing pullback to keep yourself sharp and ready to hit the ground running when sales turn around. Consider:
- Fixing these sales mistakes every real estate pro makes.
- Switching your focus to the underserved green home market.
- Taking individual actions to help close the racial homeownership gap.
But keep an eye on the volatility in the housing market while filling your time with businessbuilding tasks. Be ready to pivot when a turnaround in home sales happens. Higher mortgage rates are preventing more potential home buyers from obtaining a mortgage, a problem that’s having a greater impact in expensive markets, says NAR Chief Economist Lawrence Yun. Still, limited inventory is pushing home prices up. With 1.22 million housing units on the market at the end of October—down 0.8% from both September and a year ago, according to NAR—bidding wars are still occurring despite a slowdown. Unsold inventory sits at a 3.3-month supply at the current sales pace. “In October, 24% of homes received over the asking price,” Yun says. “Conversely, homes sitting on the market for more than 120 days saw prices reduced by an average of 15.8%.”
Remember that the market isn’t as bad as it may seem, and you can build your skills during a housing downturn.
The median existing-home price for all housing types in October was $379,100, an annual gain of 6.6% as prices rose in all regions, according to NAR. Here are other important housing indicators from NAR’s October existing-home sales report:
- Properties typically remained on the market for 21 days. Sixty-four percent of homes sold in October were on the market for less than a month.
- First-time buyers were responsible for 28% of sales, down slightly from 29% a year ago. NAR’s 2022 Profile of Home Buyers and Sellers, released earlier this month, found that the annual share of first-time buyers is at an all-time low of 26%.
- All-cash sales accounted for 26% of transactions, up from 24% a year earlier.
- Individual investors and second-home buyers, who make up many cash sales, purchased 16% of homes, down from 17% a year earlier.
- Distressed sales, such as foreclosures and short sales, represented 1% of sales, unchanged from a year earlier.
DAOR | 9 We’d Thank
DAOR | 9 November 21, 2022
“I was honored to serve my company. Vietnam is not the vactioners destination. Lots of rain and quite warm most of the time. 14 months of my life were spent in a country that I thought that I would never see. I met some real nice fellow soldiers who also cared for their country. Unfortunately, there were over 250,000 lives lost. I lost my best freind in Vietnam. We were scorned, spit at and genrally disrespected for their service to our country. Regardless of all of that I am still proud to have served my country.”
2004
Featuring Greater Downey Association of Realtors®
2002 - 2006
“The Marines showed me what discipline and hard work really means.”
We’d like to commemorate our members who have served for our country and have purchased the freedom we enjoy. Thank you for your service and bravery, we honor your sacrifices on the battlefield of World War I, World War II, the Korean War, the Vietnam War, the Gulf War, Desert Storm, and Global War on Terror.
Paula Durham U.S. Air Force 1988 - 2019
Retire Lt. Col, served on Iraqi Freedom & Enduring Freedom
Kai Chan U.S. Marines
Ernie Gutierrez
U.S. Marines
1997 - 2005
to indicators report: released of transactions, of short a
Veteran of Operation Noble Eagle/Enduring Freedom & other operations associated with the World Trade Center & Pentagon attacks
Miranda Hill U.S. Army
DAOR
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Larry Kooiman U.S. Army 1969 - 1970
By John Giardinelli, Association Counsel
IMPORTANT INFORMATION YOU NEED TO KNOW ABOUT OPEN HOUSE / SHOWINGS
If you are planning to conduct an Open House or showing for your client and have arragned for an agent from a different brokerage to sit your Open House, or showing your listing, there are certain steps you must follow to be compliant with DRE standards and the Code of Ethics, as well as limit the Seller’s obligations and exposure:
(1) Obtain the Seller(s)’s specific permission in writting to allow another brokerage to show the property and put in clear written language any conditions for access or representations the sitting agent may or may not make.
(2) Address, in writting, any other necessary disclosures or conditions and have the Seller(s) review and acknowledge these. Where appropriate, provide them at Open Houses as well as to potential Buyers and their agents.
(3) Confirm, in writting, that the non-listing broker/agent has no control over the listing price or terms. They are simply sitting Open House / staging and are being paid by the listing office. That is the Seller(s)’s ONLY obligation, unless otherwise agreed to. Both brokers need to sign off.
(4) Unless the visiting office truly procures a Buyer per the Procuring Cause and MLS Rules, the agent will have no rights except to be paid for their time. Any comission disputes shall be solely between the brokers and handled at the proper REALTOR® association.
(5) The supervising brokers are always responsible for their agent, so the supervising broker of the agent listing the property or conducting the Open House sitting must consent in writting to the activity. These consents must be in writting and clearly state rights and duties. The Broker of the sitting agent must also consent. The Seller(s) must concur and be held harmless for anything the sitting agent does and the brokers must be aware and consent.
ARE YOUR SIGNS VIOLATING LAWS?
It is important to be a good citizen when placing real estate Open House or directional signs. Use discretion, common sense, and obey local ordinances when placing signs. It is every agent’s responsibility to know the laws in the cities or counties where they work. Please ensure the continued ability of all agents to post signs by adhering to guidelines that are in place in every city. If these City Ordinances are violated by a few, everyone may lose the right to place signage for Open Houses. Remember, cities have the right to ban all signs in public right of way. By regulating the type, size, and location of signs in municipality, a sign ordinance can help preserve or create community character and stop visually distracting signs, a public safety issue.
- Jackie Funk
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The Association is noticing that some agents are not following City Ordinances when placing Open House signage. The purpose of your sign should be for an Open House and directional, not random advertising signage that does not relate to your Open House.
Follow these best practices. They will help preserve our rights as REALTORS® to use temporary signs:
Only post temporary signs (directional or Open House) when you have an Open House.
1. Always observe time and placement restrictions for signage. Do not leave signs out overnight. In addition to citations, you run the risk of having your signs confiscated by code enforcement officers.
2. Always obtain a property owner’s written permission before placing a temporary sign on someone’s property whether their property is residential or commercial.
3. Unless permitted by ordinance, never place temporary signs in the medians or right of way - meaning along the streets or sidewalk and obey Americans with Disabilities Act regulations.
4. Decrease visual clutter by “piggy backing” off of other directional signs, placing your directional signs only when your directions divert from other directions. (Not sure what piggy backing is.)
Adriana Solis President / Escrow Officer Adriana@telegraphescrow.com
9519 Telegraph Rd. Suite G.
Pico Rivera. CA 90660
Office (562) 825-3000
Fax (562) 825-3002
PAGE | 10 ONLY clear representations city.
DAOR | 12 showing be as TO
8 Ways to Move Past Student Debt - and Into a Home
You’ve got options, like repayment help from your employer and coaching from a mortgage broker.
By Leanne Potts
You want to buy a house. But you’re worried you won’t qualify for a mortgage because of your student loan debt. You’re not alone. Half of nonhomeowners (51%) say student loan debt is delaying them from buying a home, according to a survey from the National Association of REALTORS®. That number jumps to 60% for millennials.
The numbers tell an ugly story of a generation paying for its education long after graduation. As a result, they’re having to make hard life choices for decades. The average public university student borrows $30,000 in student loans to get a bachelor’s degree, according
to the Education Data Initiative. The average student loan payment is $460 a month. And nearly 48 million people have student loans.student borrows $30,000 in student loans to get a bachelor’s degree, according to the Education Data Initiative. The average student loan payment is $460 a month. And nearly 48 million people have student loans.
Ga. “We get people in their 40s and 50s who are still paying off student loans. They went back for a master’s degree, or they are parents who cosigned their children’s student loans.” President Biden provided some relief (not reflected in the previous numbers) when he announced in late August 2022 that he would cancel $10,000 in student loan debt for those earning less than $125,000 per year. The relief includes an additional $10,000 for those who received Pell grants for lowincome students.
Student debt is no longer just a first-time home buyer problem, says Cale Iorg, a loan officer at Supreme Lending in Alpharetta,
Before the pandemic, more than 8 million people — one in five borrowers with a payment due — had defaulted on their loans, the “New York Times” reported. But because many of them
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DAOR | 13
carried relatively small balances, they’ll now be eligible for loan cancellation.
Student loan payments have been paused since March 2020, but are scheduled to resume in January 2023.
some relief (not reflected in the previous numbers) when he announced in late August 2022 that he would cancel $10,000 in student loan debt for those earning less than $125,000 per year. The relief includes an additional $10,000 for those who received Pell grants for low-income students.
Despite uncertainty about debt cancellation timing and impact, you can get a mortgage while you have student debt. Here are eight tips for making it happen.
adds. Sure, there are always side hustles to bring in extra bucks to help you pay down bills. “But the surest way to improve your debtto-income ratio is to live within your means.”
And pay down those student loans.
#2 Increase Your Credit Score.
size and income. The buyer must pay just 1% down out of pocket, and the DPA pays the rest. In Georgia, a DPA offers loans of $7,500 for most buyers. Teachers, health care providers, active duty service members, and public employees are eligible for $10,000.
#4 Get a Co-Borrower.
Before the pandemic, more than 8 million people — one in five borrowers with a payment due — had defaulted on their loans, the “New York Times”
#1 Lower Your Debt-toIncome Ratio.
Your debt-to-income ratio, or score, is one of the most impactful numbers on your life since your ACT score. It measures the percentage of your monthly income that goes to pay your debts. You calculate it by adding all your monthly debts – credit card minimums, rent or mortgage, car payments, and, yes, student loan payments. Then, you divide the total by your monthly gross income (takehome pay before taxes and other monthly deductions).
Your debt-to-income ratio should be no more than 45% of your gross monthly income, Iorg says. Many lenders consider the ideal debt-to-income ratio, including a mortgage payment, to be 36% or less. Depending on your credit score, savings, assets, and down payment, lenders may accept higher ratios, according to Bankrate. It depends on the type of loan you’re applying for.
You can improve your debt-toincome ratio three ways: Make more money, spend less money, and pay down your debt, Iorg says. “Not everybody can wake up tomorrow and say, ‘Oh, well, I’m going to get a job that pays $4,000 more a month,’” he
Your credit score is the other number that profoundly affects your financial fortune. It’s basically a grade for what kind of a job you do paying your bills. The simplest ways to boost your credit score include paying your bills on time, using less than 30% of the credit limit on your credit cards, and paying off debts. There’s a lot of help out there, including free webinars, to guide you on improving your score. Generally, these tips involve paying off bills and spending less money. Yes, frugality.
#3 Look for Down Payment Assistance.
When you’re paying off student loans, saving for a down payment can be tough. The down payment can range from 3.5% to 20% of the home purchase price. If you don’t have a relative who can dump a chunk of cash on you – known in the mortgage biz as gift money – there’s other help. Down payment assistance programs offer loans or grants that pay the down payment on a house. Some DPA funds can be used toward closing costs, too.
Most DPAs require you to be a first-time home buyer with a credit score of 640 or higher and a moderate source of income. DPAs are usually offered at the local level, and their eligibility rules vary by state, city, or even ZIP code. In Seattle, for instance, you can get up to $55,000 in down payment assistance in the form of a low interest loan, depending on your household
Want to instantly improve your chances of getting a mortgage? Put a co-borrower on your mortgage. Their income counts toward the debt-to-income ratio, and their credit history bolsters yours. You’re combining forces to strengthen your financial qualifications, and that can offset the dead weight of your student loan debt.
“Co-borrowers are not uncommon,” Iorg says. “It’s a good way to go for a buyer who just doesn’t have enough money from their monthly income to qualify for a mortgage.” Iorg says the co-borrowers he sees are usually parents, siblings, or grandparents. Most co-borrowers are family members or someone with whom the homeowner has a personal relationship. But lenders don’t require a co-borrower to produce proof they know you or are related to you. They just want proof the co-borrower can pay your mortgage if you don’t.
Remember, a co-borrower will share title on the home. If that’s not your cup of joint ownership, consider a co-signer. Their income will boost your financial profile, but they won’t be a coowner of the house.
You could be eligible for loan forgiveness if you’re a teacher, attended a for-profit school that went out of business, or have a total and permanent disability. Here are the programs erasing student debt:
#5 Look into Student Loan Protection Programs.
#2 Increase Your Credit Score.
#1 Lower Your Debt-toIncome Ratio.
#3 Look for Down Payment Assistance.
#4 Get a Co-Borrower.
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#5 Look into Student Loan
Forgiveness: This program has been around since 2007 to grant debt relief to teachers, social workers, firefighters, employees of nonprofits, and other public servants. But the Biden administration loosened the rules to make more people eligible. According to the U.S. Department of Education, the PSLF has forgiven $2 billion in student loans and is still going.
• Borrower Defense and Closed School Discharge: You may also be eligible for debt relief if you attended a school that turned out to be scamming you. Hello, ITT Tech, DeVry University, and Corinthian Colleges. Thanks to rules under the Biden administration, defrauded students who got only partial debt relief under the Trump administration can now get the rest of their student loans wiped out.
• Total and Permanent Disability Discharge: Borrowers with permanent disabilities that prevent them from working can shed their student debts, thanks to changes to an existing program that the Education Department says will help at least 370,000 borrowers drop more than $6.5 billion in student debt.
#6 Get Help from Your Employer to Repay Student Debt.
Some companies are offering student loan repayment assistance as a benefit. Google matches employee payments up to $2,500 a year; Aetna matches up to $2,000 a year with a lifetime cap of $10,000; and Fidelity Investments pays up to $10,000 of an employee’s student loans. Other companies that offer payment assistance include Carvana, Chegg, Hulu, Lockheed Martin, New York Life, and PwC (PricewaterhouseCoopers).
Employer-sponsored student loan repayment may become more common. The Coronavirus Aid, Relief and Economic Security (CARES) Act of 2021 gives a tax break to companies that offer student loan
repayment assistance. From now till Dec. 31, 2025, employers can contribute up to $5,250 a year tax-free to an employee for repayment of student loans. So, if your boss gets on board this year, you could get as much as $15,000 of your loans paid off before the program ends.
#7 Lower Your Student Loan Payments.
You can do this in one of two ways:
• Opt for an income-based repayment plan for federal student loans. You can apply for loan repayment plans that will lower your monthly payment on a federal student loan based on your income and family size. The basic income-based repayment plan caps your payments at 10% of your discretionary income. It also forgives your remaining loan balance after 20 years of payments. That can go a long way toward lowering monthly debt payments and your debtto-income ratio.
• Refinance your private student loans. This is a good idea if you have private student loans that aren’t eligible for federal loan forgiveness or have variable rates. If you can get a lower interest rate, you can change your life. For example, if you have $30,000 in private student loans with an 8% interest rate, you’ll pay $364 for 10 years. Refinance that to a 15-year loan at 4% interest, and your payment drops by $142 a month. You’ll also save around $3,735 in interest over the life of the loan.
#8 Get a Mortgage Broker Who Will Coach You.
Look for someone who is experienced at working with borrowers who have more student debt than they’d like. Get a broker who will work with you to find DPA programs; steer you through the ins and outs of FHA, conventional, and VA loans; and help you get your finances in order so you become a better mortgage candidate. Iorg says his office has a credit analyst whose job is to help clients improve their credit scores and debt-toincome ratios.
The Bottom Line
The Bottom Line
There’s no quick fix to buying a house when you have student loans.
The good news is there’s more public support for student debt forgiveness. Many economists say forgiving student loans, such as the Biden plan for debt cancellation, would put money back into Americans’ pockets. That would boost the economy and encourage the formation of more businesses and households. More businesses means more jobs, and more households means more spending. And spending fuels the U.S. economy.
Recent events have reinforced that changes are the norm for student loan debt and relief. Changes to the PSLF program have made more people and more types of federal loans eligible for forgiveness. Add to that the raft of assistance programs that help renters become first-time home buyers, and you may be able to afford it all: a college education, a mortgage, and a 401(k) contribution. You just may not be able to do it all at once. It will take planning and time.
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• Public Service Loan
Article written for houselogic by REALTORS®
#7 Lower Your Student Loan Payments.
#8 Get a Mortgage Broker Who Will Coach You.
#6 Get Help from Your Employer to Repay Student Debt.
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BLANCA PACHECO
- JJ Lopez
