Fortunately, Bank of America in Oakland (to whom I am not affiliated with in any way) has a program called Acorn. Acorn is a non-profit organization that works with lenders to offer financing at more favorable terms for first time home buyers purchasing Oakland real estate or a home anywhere in the Bay Area.Up until the subprime mortgage problems arose, the program also offered interest rates that were 1/2 to a full point lower than anyone else could offer. Now, although the below market interest rate feature is no more, it still allows for a 100% 30 yr fixed loan with no pre-payment penalty and no PMI (Private Mortgage Insurance) on a property up to $515k. This is something that no other program that I have found can do while providing a competitive rate.

There are some basic qualifications to be eligible for the program. First, as mentioned the purchase price of the home (for single family homes) cannot exceed $515,000. Also, your gross annual income cannot exceed $84,000, but other than that, as long as you don't have any late payments or collections on credit accounts, you should be able to qualify. Borrowers must also attend a mandatory first time home buyer seminar by Bank of America in Oakland.

The bottom line is, buyers need to know about all the options that are available to them. The media has painted a picture of doom and gloom, however if you look deeper you will see there may be a way to still get that home with nothing down.

There is an interesting connection between Duncan Mcduffie and the Bay Area, because Mcduffie was a real estate developer who is responsible for the St. Francis Wood residential Park in SF, and the development of the Claremont and Northbrae communities in Berkeley, two areas which remain desireable to this day.

In order to promote the Northbrae community, it is said that he proposed that Berkeley be designated the Capital of the state. Mcduffie was somewhat of a Naturalist, and this was reflected in his vision for the nieghborhoods he designed. He was interested in creating neighborhoods where the architecture blended with the natural surroundings. It was important to him not to overlook the natural beauty of the areas he was developing. This is reflected in Oakland real estate as well, with communities such as Crocker Highlands, Montclair, Piedmont as well as others.

Mcduffie became Sierra Club President from 1928 to 1931, and from 1943-1946. In 1924 he helped create the state park committee that formed the state park system. In th 1930's he served on a committee that surveyed open space in the East Bay hills and was a proponent for the 1934 state law that created the East Bay Regional Park District. It is evident that his contributions to the Bay Area are vast and long lasting.

Mcduffie was a true pioneer, setting the stage for what is now some of the most desireable real estate in California. The company he formed, Prudential California Realty now has over 100 offices and thousands of agents, and is currently the market leader in the East Bay Area.

Unfortunately, today short sales are simply a reality if the business and the market that we are in. From the perspective of a real estate agent, a short sale is much more of a riskier edeavor. In a typical sale, the decision that is made on any offers that are received is made by the owner of the home, which makes perfect sense.

However, in a short sale situation, any offers that are received are subject to lender approval. Since the lender will most likely be losing money on the deal, it is up to them whether or not the offer that was received is accepted.The same is true for the agent commission for both agents in the transaction. It is possible for the lender to accept the offer, but not agree to compensate the agents involved.

This creates an environment where your agent (on the buying or selling side) can work for months trying to get the home sold, and still end up not getting paid for thir work. It's very important for any agent considering handling a short sale to get in contact with the lenders as early as possible. If the property in question has a 1st and 2nd loan, then it may be more difficult because both lenders must agree to the terms of the sale or it can't go through.

One unfortunate result of this is that it can create a situation where a buyer can have their loan "pulled" at the last minute even though the loan documents have already been signed. There was a recent case that involved an invest (who had great credit) made a $79,000 initial deposit on an investment property. After he signed his loan documents at the title company, the lender notified him the they are pulling his loan due to a change in underwriting criteria. Long story short, he had to forfeit his $79,000 initial deposit.

This is an extreme example, but one that is entirely possible in the new world of financing that we have. If you carefully read the loan documents that a buyer signs, it is made clear that the lender has the right to rescind the loan at any time before the close. This leaves buyers in a precarious situation, especially if they have marginal credit and income. The fact that the lenders are experiencing hard times means that they are being much more selective with respect to who they lend to.

So the bottom line is, as real estate agents representing buyers, we must do what we can to communicate with lenders and try to avoid any surprises. The reality is, if the lender wants to pull the financing at the last minute, there is nothing the agent can do about it. So our job becomes to advise and make sure that our clients are getting financing from large, reputable lenders who are less likely to back off at the last minute.

Hamid Grinage is a Realtor with Prudential California Realty in Oakland

Hamid Grinage is a Realtor with Prudential California Realty in Oakland

Hamid Grinage is a Realtor with Prudential California Realty