Real Estate in Ukiah and Mendocino County

Refinance Help for those Underwater

2011-10-24T14:10:00.000-07:00

Could be of real help to those trying to keep their homes...

"Obama Expected to Unveil Housing Aid

DAILY REAL ESTATE NEWS | MONDAY, OCTOBER 24, 2011
President Barack Obama is expected to announce Monday new policies to help struggling home owners, including a move that would allow borrowers to refinance their mortgage at current low rates no matter how much their home values have dropped.

The announcements are expected to unveil looser terms to qualify for the Home Affordable Refinance Program (HARP), which helps borrowers up-to-date on their mortgage payments refinance, despite a drop in their home values.

The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, also is expected to end a cap that excluded home owners from HARP who had mortgages that were higher than 125 percent of the home’s value.

Many borrowers who are underwater on their properties have been unable to refinance their mortgage since they do not have enough equity in their properties. The administration’s plan is expected to eliminate “appraisals and extensive underwriting requirements for most borrowers” who are up-to-date on their mortgage and want to refinance at a lower rate, The Wall Street Journal reports.

Obama is also expected to announce a reduction in Fannie Mae and Freddie Mac loan fees and a waiving of fees for borrowers looking to refinance their mortgages into shorter terms. Lenders could start refinancing, following the new policies, as early as Dec. 1. However, mortgages that are more than the current loan-to-value limit may have to wait until early next year, according to media reports.

Housing experts believe that allowing underwater home owners to refinance at the current low rates will allow home owners to shave hundreds from their monthly mortgage bills and possibly help avoid foreclosures and free up more household cash to spur economic recovery in other areas.

Source: “WSJ: Home Lending Revamp Planned,” The Wall Street Journal (Oct. 24, 2011) [log-in required] and “Obama to Unveil Housing Plan on Campaign Swing West,” Reuters News (Oct. 24, 2011)"
http://realtormag.realtor.org/daily-news/2011/10/24/obama-expected-unveil-housing-aid

Marin IJ article

2011-05-24T13:02:00.000-07:00

Definitely check out this article
http://www.marinij.com/business/ci_18073444
That describes the current market in Marin County. Seems that the supply and demand are settling down, and although sales are only just starting to pick up, it seems to be giving indications that we're in the bottom and looking to start strengthening... yes, we all have a long way to go, but one step at a time!

Medical Marijuana property and more thoughts...

2011-04-28T15:28:00.000-07:00

Looking for a Medical Marijuana property. Yes, definitely a question we are asked with frequency in Mendocino County. I understand this question was posted over a year ago, but I think there are others out there who would like a general answer. Basically, although the county and state allow medical marijuana growing and usage with many conditions, it is still a Federal crime-- please remember that.

With that said, my suggestion would be to look for a geographic location with enough land and room between neighbors-- or, if growing indoors, a building or room suitable for that use and with a filtration system to not become a nuisance to the neighbors. Being friendly and considerate with those who live around you can go a long ways to a peaceful existence.

There are areas that are not friendly for growing Medical Marijuana, like in the Willits or Lakeport city limits. The Mendocino County Sheriff's Dept has a program you can register through, too. Always check the location and possible restrictions on the property you may want to purchase.

Also, when looking for ANY property. Ask about water. Does it have a well, district water, spring, etc? A low producing well is not always bad if it is consistent, even in drought years... a spring can be wonderful, but also can stop in the summer months. Years ago when the market was hot, many people forgot to ask important questions like these about the property.

Finally, ask yourself how you are doing to purchase the property? With a conventional loan, private money loan, seller carry-back, or a lease-option? The lease option has become a popular choice, but few know the risks to both buyer and seller. If you do not fully understand the details and risks of a lease option, then you may truly lose out on many thousands of dollars-- so check into that option carefully! With seller financing, the buyer can save because they are not spending money on lending fees-- but the terms including interest rate may not be good for the buyer, and there are also many details about seller financing that should be addressed... and if not, it can cause problems again for both buyer or seller down the road.

Basically, make sure everything is spelled out-- and never feel there is a silly question that you should not ask. There are no stupid questions! Well, almost never! But you get the idea :)

Help with closing costs for buyers///

2011-04-13T12:03:00.000-07:00

Hey, this could be good for some people! Glad they're still thinking of ways to help homebuyers...

"Daily Real Estate News | April 13, 2011 | Share
Fannie Offers Closing Cost Help for REOs
Fannie Mae is trying to lure more buyers to its foreclosure properties by offering to cover 3.5 percent in closing costs for home owners who close by June 30 on its HomePath properties.

Fannie’s HomePath program provides low down payment financing on REO property sales and has no requirements for mortgage insurance or appraisals.

During the fourth quarter of last year, Fannie offered closing cost assistance and was able to recoup 55 percent of unpaid principal balance on defaulted mortgages through the sales."

Source: “To Move REO, Fannie Offers Deals to Consumers,” National Mortgage News (April 12, 2011)

http://www.realtor.org/RMODaily.nsf/pages/News2011041301?OpenDocument

Short sale help? We'll see...

2011-04-13T12:02:00.000-07:00

Good luck guys! Trying to fix short sales again, are we?? More power to you!

"Daily Real Estate News | April 13, 2011 | Share
NAR Applauds Short Sales Bill
A new bill to improve the process for approving short sales may soon bring relief to distressed home owners who are unable to keep their homes and hope to avoid foreclosure. The bill, introduced in the U.S. House yesterday and strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, would impose a deadline of 45 days on lenders to respond to short sale requests.

The legislation, the “Prompt Decision for Qualification for Short Sale Act of 2011,” was offered in Congress by U.S. Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.). “The current short sale process can be time-consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a home owner from foreclosure,” said NAR President Ron Phipps.

“REALTORS® and consumers continue to raise issues about delays in the short sale process, because lenders are unable to decide whether to approve a short sale. After many months of delays, and with no response from lenders, potential buyers are losing patience and cancelling their contracts, often resulting in the property entering foreclosure. A short sale minimizes the negative impact on sellers and generally costs the lender less than a foreclosure,” said Phipps.

NAR has been actively pushing the lending industry to improve the process for approving short sales, which represent about 13 percent of recent home sales according to NAR data. Phipps praised Reps. Rooney and Andrews for their efforts on the bill and urged Congress to pass the bill quickly.

“As the leading advocate for home ownership and housing issues,
REALTORS® want to help more home owners avoid foreclosure by facilitating a short sale when a family is absolutely unable to keep their home; however, that can only happen if lenders and servicers approve short sale offers in a reasonable amount of time,” said Phipps. “Streamlining short sales transactions will reduce the amount of time it takes to sell the property, improve the likelihood that the transaction will close and reduce the overall number of foreclosures. This benefits sellers, lenders, buyers, and the entire community.”"

http://www.realtor.org/RMODaily.nsf/pages/News2011041302?OpenDocument

How to get Mortgage Free-- tips to pay it off

2011-04-13T12:00:00.000-07:00

Here are some tips to get your mortgage paid off early!

"Daily Real Estate News | April 13, 2011 |
Mortgage Free? Help Home Owners Learn How
Do your clients aspire to live mortgage free? Here are a few ways they can pay off their mortgage early, according to a recent article at Bankrate.com.

Add a little payment to principal. Use mortgage calculators to see how adding a little extra payment to your principal--even $100--can shorten the length of your loan and reduce the amount of interest you'll pay on it. Tracy Piercy, CEO of MoneyMinding.com, says home owners can just round their monthly payments up (e.g. $644 to $650) to find savings too--just an extra $6 per month on a $200,000, 30-year loan can save you four payments at the end of your mortgage loan.

Refinance. Interest rates are low and you can often can get an even better rate if you refinance into a shorter loan term. For example, 15-year loans are a popular refinancing choice. You’ll have higher payments, but you’ll be paying less overall interest. Or if you don’t want to commit to the higher payments, take out a 30-year loan but make payments as if you had a 10- or 15-year loan, experts recommend.

Make biweekly payments. Pay half your regular mortgage payment every other week instead of once a month. By doing so, you’ll have made 13 full monthly payments by the end of the year and on a 30-year mortgage, that extra payment can chop about six years off your mortgage."

Source: “4 ways to pay off your mortgage earlier,” Bankrate.com (April 2011)

http://www.realtor.org/RMODaily.nsf/pages/News2011041306?OpenDocument

Be careful of your mail!!!

2011-01-21T11:35:00.000-08:00

Honestly, worries about the mailbox and other people's access to it is one reason why I have a post office box now...

--------------
Daily Real Estate News | January 21, 2011 | Share
Thieves Target Tax Documents, Watch Your Mail
Tax season is here, which means you need to take some extra caution when receiving your important tax documents in the mail and ensure they don’t fall into the wrong hands, identity theft experts warn.

Year-end credit card summaries, W-2s, 1099 income tax forms, and brokerage statements contain critical information about you, such as your full name, Social Security number, and account numbers. In the wrong hands, that type of personal information can put you at risk for identity theft.

"People don't understand that 'walkers' follow mail carriers and look through your mail for any bonanza they can find," says Linda Foley, chairman of the Identity Theft Resource Center. "Mail thieves know the prime time is between 9 a.m. and 3 p.m. Others take advantage of the dark of night and/or consumers' tendencies of not checking mailboxes each day."

Some experts warn that some thieves are even opening envelopes and making copies of documents and then resealing your mail and placing it back in the mailbox -- so you never suspect a thing.

Here are some suggestions from experts on how to better protect your mail:

Purchase a secure, locked mailbox for your home or get a post office box to prevent others from accessing your mail.
Get your mail soon after it arrives and avoid having mail left in your mailbox for long periods of time. Put a vacation stop on your mail if you are going to be out of town.
If you think your mail has been stolen, contact your creditors or bank about your bills and the U.S. Postal Inspection Service to investigate any missing mail or mail theft. You can file a mail theft complaint online at https://postalinspectors.uspis.gov/contactUs/filecomplaint.aspx or call 1-877-876-2455.

Source: “Mail Thieves Are Waiting for Your Tax Documents,” The Dallas Morning News (Jan. 17, 2011)

http://www.realtor.org/RMODaily.nsf/pages/News2011012104?OpenDocument

Interest rates...

2011-01-21T11:33:00.000-08:00

I know the rates are still really good, but be aware of changes~

--------------------------------
Daily Real Estate News | January 21, 2011 | Share
30-Year Mortgage Rates Inch Up
The rates on 30-year fixed mortgages increased slightly this week, with average rates rising 4.74 percent from 4.71 percent the previous week, Freddie Mac reports.

In November, 30-year rates had reached a 40-year low at 4.17 percent but have been inching upward ever since.

Here’s how other rates fared for the week:
15-year loan rates dropped to 4.05 percent from 4.08 percent.
5-year adjustable-rate mortgages averaged 3.69 percent, down slightly from 3.72 percent the previous week.
1-year ARMs were up slightly to 3.25 percent from 3.23 percent last week.

“Mortgage rates were little changed during the holiday week amid reports that inflation remains tame,” says Frank Nothaft, Freddie Mac vice president and chief economist. The housing construction market as well as home builder confidence still remain low, Nothaft notes.

Source: “Tame Inflation Figures Leave Mortgage Rates Mixed,” Freddie Mac (Jan. 20, 2011) http://www.realtor.org/RMODaily.nsf/pages/News2011012105?OpenDocument

We need more jobs!!!

2011-01-21T11:31:00.000-08:00

Surprise, surprise. We need more jobs!!!

"Daily Real Estate News | January 21, 2011 | Share
Job Recovery is Vital for a Strong Economy
With the exception of financial companies, corporate profits in 2010 were the highest ever, which should bode well for U.S. job recovery, says NAI Global Chief Economist Peter M. Linneman. “This could be a real stimulus for the economy,” unlike government efforts which just shifted existing funds around, he says.

The problem so far is that this $1.3 trillion of excess cash isn’t translating into new jobs. Linneman, who made his remarks during a Jan. 18 webcast, attributes the inactivity to uncertainty over political policies and regulation. But he adds that once corporations achieve a level of certainty, spending “could pick up much quicker than people realize.” “I’m very optimistic about this happening,” he says.

Yet, even if job growth returns to normal rates of approximately 1.7 million new jobs per year, it will take about five years to replace the 9 million lost jobs and absorb current vacant office space. “About 85 percent of vacancies today are due to job loss, not overbuilding,” Linneman says.

Jobs are also the catalyst for multifamily demand growth, says Linneman. With more than 2 million “pent-up households," there will be more households than units waiting for them if the economy begins to add jobs at a more normal pace."

Source: "Global Economic Outlook Web Conference," Peter Linneman, NAI Global (Jan 18, 2011)
http://www.realtor.org/RMODaily.nsf/pages/News2011012101?OpenDocument

Home Projects to increase appeal

2010-12-16T13:57:00.000-08:00

In looking at this article below, do keep in mind that people do not usually make money on these home projects directly-- you can increase the general appeal in your home, and shorten the time it's on the market by engaging a buyer sooner. Don't be discouraged from doing projects, but remember that you are not likely to get a 100% return for it!

Daily Real Estate News | December 16, 2010 | Share
Owners Recoup More with Exterior Home Projects
As part of the 2010-11 Remodeling Cost vs. Value Report, Realtors® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time.
“This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but also are among the least expensive improvements for a home,” said National Association of Realtors® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for home owners to work with a Realtor®through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”
Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1 percent of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9 percent of costs. Both projects are small investments that cost little more than $1,200 each, on average. Realtors® identified these two replacements as projects that can significantly improve a home’s curb appeal.
“Curb appeal remains king – it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.
The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.
Realtors® provided their insight into local markets and buyer home preferences within those markets. Overall, Realtors® estimated that home owners would recoup an average of 60 percent of their investment in 35 different improvement projects, down from an average of 63.8 percent last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.
According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70 percent of costs. Upscale fiber-cement siding replacement was judged by Realtors® the most cost effective among siding projects, recouping 80 percent of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6 percent upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8 percent of costs.
The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2 percent nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70 percent. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8 percent; a backup power generator, recouping 48.5 percent; and a sunroom addition, recouping 48.6 percent of costs.
Although most regions followed the national trends, the regions that consistently were estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.
The regions where Realtors® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and Middle Atlantic (New York and Pennsylvania).
“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a Realtor®who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”
Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, visit http://www.costvsvalue.com/.
Source: NAR

http://www.realtor.org/RMODaily.nsf/pages/News2010121601?OpenDocument

Buying that home...

2010-12-16T13:52:00.000-08:00

It is true that owning a home can be a great help in relieving some income taxes... and many renters still look forward to buying someday... so, here's an interesting article below!

Daily Real Estate News | December 16, 2010 | Share
People Still Want to Own a House: Fannie Mae
The desire to own a home hasn’t been diminished by the downturn in the industry, according to a survey by Fannie Mae.
51 percent of owners and renters say that the housing crisis has not affected their overall willingness to buy a home. About 27 percent said they are more likely to buy since the crisis, presumably because of lowered prices, and 19 percent said they are more likely to rent.
In the short term, Americans are nervous about buying. About 33 percent say they would be more likely to rent their next home than buy, up from 30 percent in January. Among renters, 59 percent said they would continue to rent in their next move, compared to 54 percent in January 2010.
Other findings include:
· 66 percent of respondents say they believe that housing is a safe investment - as safe as an IRA or a 401(k) plan.
· About 50 percent say they believe that owning is a good idea, even if they plan to stay in the home less than three years.
· 86 percent identify tax benefits as a reason to buy, even though tax benefits are small or non-existent for many homeowners.
Source: Fannie Mae (12/15/2010)

http://www.realtor.org/RMODaily.nsf/pages/News2010121602?OpenDocument

Appraisal Standard changes...

2010-12-03T12:37:00.000-08:00

These changes will bring more regulation and difficulties, since appraisers will not be easily held accountable... just hope you get a really good appraiser!!!!!!!!!

Daily Real Estate News | December 3, 2010 |    Share
Fed Releases Updated Appraisal Guidelines
The Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the National Credit Union Administration jointly on Thursday released the latest and what is expected to be final version of property appraisal guidelines.

The new guidelines set a standard for appraisal independence. Lenders can exchange information with appraisers, but they cannot "directly or indirectly coerce, influence, or otherwise encourage an appraiser or a person who performs an evaluation to misstate or misrepresent the value of the property."

Among other rules:

·    Banks cannot tell the appraiser of any expected or qualifying estimate of value.
·    Banks cannot specify a minimum value requirement for the property that is needed to approve the loan or as a condition of ordering the valuation.
·    Banks cannot tie an appraiser's compensation to loan approval.
·    Banks can’t blacklist an appraiser if his valuations fail to meet expected thresholds.

The agencies also clarified that broker price opinions (BPOs) don’t comply with the minimum appraisal standards.

Source: Housing Wire, Jon Prior (12/02/2010 http://www.realtor.org/RMODaily.nsf/pages/News2010120303?OpenDocument

Pending Home Sale Statistics...

2010-12-02T13:30:00.000-08:00

Daily Real Estate News | December 2, 2010 | Share
Strong Rebound in Pending Home Sales
Pending home sales jumped in October, showing a positive uptrend since bottoming in June, NAR says.

The Pending Home Sales Index, a forward-looking indicator, rose 10.4 percent to 89.3 based on contracts signed in October from 80.9 in September. The index remains 20.5 percent below a surge to a cyclical peak of 112.4 in October 2009, which was the highest level since May 2006 when it hit 112.6.
Last October, first-time buyers were motivated to make offers before the initial contract deadline for the tax credit last November. The data reflects contracts and not closings, which normally occur with a lag time of one or two months. Lawrence Yun, NAR chief economist, said excellent housing affordability conditions are drawing home buyers. “It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011,” he said.

“More importantly, a return to more normal loan underwriting standards and removal of unnecessary underwriting fees for very low risk borrowers is needed and could quickly help in the housing and economic recovery,” Yun said. Recent loan performance data from Fannie Mae and Freddie Mac clearly demonstrates very low default rates on recently originated mortgages, much lower that the vintages of 2002 and 2003 before the housing boom.
The PHSI in the Northeast jumped 19.6 percent to 71.3 in October but is 27.3 percent below the tax credit peak in October 2009. In the Midwest the index surged 27.3 percent in October to 81.7 but is 24.8 percent below a year ago. Pending home sales in the South rose 7.1 percent to an index of 93.8 but are 18.4 percent below October 2009. In the West the index slipped 0.4 percent to 104.3 and is 15.6 percent below a year ago.

Near term, Yun expects home sales will continue to climb from their cyclical low this past summer. “Even so, we now have some consumer concerns regarding the mortgage interest deduction, an important component in housing affordability,” he said. “Preliminary results of a new survey show nearly three out of four home owners and two out of three renters consider the mortgage interest deduction to be extremely or very important to them. Home owners already pay between 80 and 90 percent of all federal income taxes and additional tax burden would hurt them and the economic recovery, so we have a reasonable hope that it will not be changed.”

Source: NAR

Browse all of today's news
http://www.realtor.org/RMODaily.nsf/pages/News2010120201?OpenDocument

Real Estate thoughts for Mendocino County

2010-12-02T09:53:00.000-08:00

In looking behind and ahead, I see that we are slowly working through the worst of the downturn... but there is still so much to go!

I have been approached by some who wonder if the housing prices will drop again by a large percent, but in looking to the counties South of us, we see that is not likely to be the case. Sonoma County's lowest price ranges have been stabilizing and increasing a bit (only because they reached a "false" bottom due to the foreclosures), which is a good indicator for us in Mendocino County. Also, our own lowest price ranges have been stablizing in Ukiah and Redwood Valley, and Willits shall not be far behind...

But, there are others who hope that when the foreclosures trickle towards a stop, we shall see prices go up again-- to that I say, IF prices go up at all, it shall be by a VERY tiny amount (unless the value is rebounding from being affected by a "false" bottom in the lowest price ranges), but that we shall have years before any significant increase in prices occurs.

So, does one buy now or wait? Depends on what someone is looking for, really. If the property they want is available and suits their needs... they can afford the payments and are not paying too "over the current market" for it, then I would say that purchasing is a good idea. If someone is only waiting for the "real" bottom to buy, then they run a high risk of waiting until the prices do start back up... but by that point in time, perhaps they will not find what they want before they are priced out? All depends on the supply of homes and what is available at what time. However, if there is nothing out there that a buyer wishes to jump at, then do not feel forced! That is truly not the way to buy a home... there will be other properties on the market in future, and perhaps one of those will be the "one" for you.

Yes, the bank-owned properties offer good buys on the market, but I have also seen multiple offers and frenzies to buy that have driven the price above what I would have considered a "great buy"... so be careful of not falling into the emotional trap of a bidding war.

Lastly, never lose sight of what you qualify for, but more importantly what you are comfortable with! If you qualify for $300,000 but feel more comfortable with payments at a price of $250,000... then try to stay as close to the $250,000 as possible. Ask your agent for sales comparisons to the property you have interest in-- but understand that the condition of these comparisons may be drastically different (they can look a lot different on paper and on the internet as compared to real life), and there may be a reason for a price difference...

The goal should be for a positive transaction that makes all happy or at least satisfied... and go ahead and ask questions along the way. You are not unintelligent for needing to ask questions! Maybe we do not always tell you, but we have to ask a lot of questions ourselves in this constantly changing market. :)

Lending Money to Family...

2010-11-29T14:51:00.000-08:00

Lending Money to family may be the only way to have a purchase close... but there are positives and negatives to doing this-- I think it can truly be a win-win, but do not blindly go into this!! Make sure you know the facts and the law, so that all can be informed and protected...
_______________________
Daily Real Estate News | November 29, 2010 | Share
How to Lend to a Family Member
Carrying a mortgage for a family member can be a good investment, but it can also be tricky. Here are a few things to consider.

The lender must be comfortable with the deal. While a 30-year term is a popular bank loan, private lenders are sometimes more comfortable with shorter loan periods like 15 or 20 years. A 30-year term could be made more attractive to the lender by introducing a higher rate of interest at 10-year or 15-year intervals.

Questions to answer before agreeing to make the loan include:

▪ How will the loan be paid off if the borrower dies or is otherwise unable to complete payment or sell the property for enough to pay off the loan?
▪ What happens if the borrower goes into bankruptcy?
▪ What if the borrower fails to make timely payments?
▪ Will the lender require the borrower to escrow the property taxes and insurance?

Also, put the details of the transaction in writing and record it at the local recorder of deeds office so the borrower can’t get another loan on the property or sell the home without paying off the borrower.

Source: Real Estate Matters, Illyce R. Glink and Samuel J. Tankin (11/27/2010)
http://www.realtor.org/RMODaily.nsf/pages/News2010112906?OpenDocument

Bank Owned sales and problems...

2010-11-29T14:48:00.000-08:00

Below is from Realtor.com regarding some of the problems with bank-owned homes... I recently had a sale where the bank/asset manager had forgotten to sign a couple of our CAR addendums (we had all agreed to their addendum so the contract could move forward) and because of that the loan funding was threatened (just a delay, but every day counts!)...
________________________________________________________________
Daily Real Estate News | November 29, 2010 | Share
Foreclosure Mess Leaves Some Buyers in Limbo
An increasing number of buyers of foreclosed homes are finding that they can’t close on the property because the foreclosure — and the sale — is derailed by a problem with the foreclosure paperwork.

“Many of these transactions will probably never close,” said Greg Rokeh, a manager of bank-owned real estate in Longwood, Fla., for Watson Realty Corp.

Rokeh said he has about 25 pending sales that are tied up in the document reviews. He predicts that most of buyers will give up and purchase a different property.

“We understand it is a huge inconvenience to buyers,” Freddie Mac spokesman Brad German said.

Source: Bloomberg, David Henry (11/24/2010)
http://www.realtor.org/RMODaily.nsf/pages/News2010112904?OpenDocument

After-Thanksgiving

2010-11-29T14:40:00.000-08:00

Hello! I hope your holiday weekend was a smashing success... I certainly have to get back into exercising now, but I think it was worth it :)

So... for the real estate world during the Holidays. Hmm. Quiet in Mendocino County. There was activity, but not much, before Thanksgiving... and a little is stirring today-- Monday-- but I think it will take another day+ to gear back up. However, I do think we shall be seeing activity through the winter, and not for the first time in Mendocino County. In other states, the weather simply prohibits certain real estate (showings/etc) from taking place, but here we see a decline and change-- but still forms of activity. Sometimes properties that are a bit more challenging receive further attention and finally offers-- and some investors are scrambling to exchange before time runs out, which becomes advantageous to a seller...

Other than that, I have seen the interest rate creeping up a bit... and, so, we truly do not know if that was the bottom for the interest rates, or perhaps we shall briefly see them again. If we do, it probably will not be for long. Not that any of us forsee rates going sky-high... but slowly heading back up? Seems natural...

Okay! Back to work. More soon.
-Karena Jolley

Quick Ways to Impress Buyers Coming into Your Home

2010-01-26T14:29:00.000-08:00

Always good to know of a few quick and easy tricks to make your home more desirable!
"Daily Real Estate News | January 26, 2010
Ten Inexpensive Ways to Wow Buyers
Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season. "If you have been beating your head against a wall, this is going to feel a lot better,” he jokes.

Here are 10 cheap ways to make a property more attractive to shoppers.
Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

Source: U.S. News & World Report, Luke Mullins (01/21/2010)"

http://www.realtor.org/RMODaily.nsf/pages/News2010012601?OpenDocument

Mortgage Companies may be getting ready to work with you~

2010-01-08T11:46:00.002-08:00

"Principal Cuts May Prevent Foreclosures

At least 7 million borrowers will lose their homes this year and next unless there is a broad increase in property values or lenders become much more willing to cut the principal on mortgage loans, an analyst with Amherst Securities Group told the U.S. House Financial Services Committee last month.

That testimony has motivated Federal Deposit Insurance Corp. Chair Sheila Blair to consider incentives for lenders to cut principal on $45 billion in mortgages her agency has acquired from seized banks.

“We’re looking now at whether we should provide some further loss-sharing for principal write downs,” says Bair. “Now you’re in a situation where even the good mortgages are going bad because people are losing their jobs.”

While principal reductions are rare, some banks are doing them. In the third quarter of 2009, about 21,000 home loans were modified by reducing the principal, according to Mortgage Metrics, a government publication.

Mark Zandi, the chief economist for Moody’s Economy.com, suggests that banks receive a federal match of $1 for every $2 in principal reductions they offer to home owners.

“You’re not going to wipe out all the borrowers’ negative equity,” he says. “This just gives them enough hope to get them committed again.”

Source: Bloomberg, John Gittelsohn and Prashant Gopal (01/07/2010)"

Daily Real Estate News
January 8, 2010

http://www.realtor.org/RMODaily.nsf/pages/News2010010801?OpenDocument

Building/Construction company assistance via tax law breaks...

2010-01-08T11:46:00.000-08:00

"Tax Law Change Gives Builders a Boost

Some home builder companies are posting gains, thanks in large part to a change in tax laws that allowed companies to apply losses incurred in 2008 and 2009 to income earned in any five years through 2007. Home builder Lennar Corp. posted its first quarterly profit since 2007.

Previously, losses could be counted against profits over just two previous years.

Lennar also had a 3 percent increase in new orders in 2009, its first since 2006.

Toll Brothers said last month that it expects a $162 million income tax refund when it files its 2009 taxes, thanks to the change in the law. And last month, Wall Street analysts upgraded KB Home’s shares because of an expected refund.

In a paper by John R. Graham and Hyunseob Kim for the National Bureau of Economic Research, Graham and Kim estimated that the tax-loss carrybacks would cost the government $53 billion, with the beneficiaries "concentrated in the home-building, automobile, and financial industries."
Source: Fortune, Colin Barr (01/07/2010)Daily Real Estate News"
January 8, 2010

http://www.realtor.org/RMODaily.nsf/pages/News2010010806?OpenDocument

Misuse of Home Buyer Tax Credit Reported

2009-12-28T12:03:00.000-08:00

I know some of these people did not realize, but surely there are some taking advantage of the current situation!!
"A report earlier this month from the Treasury Inspector General for Tax Administration estimates that 73,799 taxpayers have incorrectly claimed the first-time home buyer tax credit. The report concludes: “The IRS is unable to verify eligibility for the majority of Recovery Act benefits at the time a tax return is processed.”

The IRS didn’t dispute the claim, but said it was studying the matter further. Some have suggested that this report and others will encourage Congress to put some safeguards in place before more claims result from the extension and expansion of the tax credit.

Source: The New York Times, Lynnley Browning (12/22/2009)

Daily Real Estate News | December 28, 2009"

http://www.realtor.org/RMODaily.nsf/pages/News2009122801?OpenDocument

Interest Rates Predicted to Reach 6%

2009-12-28T12:02:00.000-08:00

Something to keep in mind...

"Interest rates are likely to rise to 6 percent by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

"Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it's hard to imagine that the rates can go much lower than they are," Crews Cutts said. "Anything we get at or below 5 percent is a gift at this point."

Source: Washington Post, Dina ElBoghdady (12/26/2009)

Daily Real Estate News | December 28, 2009"
http://www.realtor.org/RMODaily.nsf/pages/News2009122803?OpenDocument

TAX CREDITS FOR REPEAT HOME BUYERS :)

2009-11-29T08:38:00.000-08:00

Do check this out, especially if you are thinking of buying another primary residence before the end of April 2010!!

"Frequently Asked Questions
About the Move-Up/Repeat Home Buyer Tax Credit

The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation."

http://www.federalhousingtaxcredit.com/faq2.php

TAX CREDITS !!!

2009-11-29T08:32:00.000-08:00

They are here for awhile more, but not forever...

"Frequently Asked Questions

About the First-Time Home Buyer Tax Credit

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation."

http://www.federalhousingtaxcredit.com/faq1.php

Tax Credit likely to continue in a form

2009-10-28T09:02:00.000-07:00

"Tax Credit Extension Seems Likely It seems likely that the U.S. Senate will approve a deal to extend the First-Time Homebuyer Tax Credit, but the devil is in the details.
Florida Democrat Sen. Bill Nelson told reporters traveling to Florida with President Obama on Monday that he thought that the extension would be approved, but both senators and representatives are among those who think that there should be some fiscal offset for the cost of the extension. Spending any more money on the stimulus effort also could stir up a hornets' nest in some circles. The proposal in the Senate that appears to have the most likelihood of passage would extend the $8,000 credit through March 31, then its value would drop by $2,000 for each of the subsequent three quarters of 2010. This plan was offered by Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus, a Montana Democrat."
Source: Associated Press, Andrew Taylor (10/26/2009) and The Wall Street Journal, John D. McKinnon (10/27/2009)
http://www.realtor.org/RMODaily.nsf/pages/News2009102701?OpenDocument10/27/09

Jumbo Loan changes??

2009-10-21T11:13:00.000-07:00

"Jumbo Freeze Might be Thawing
October 15, 2009 by Robert Freedman · 4 Comments
Filed under: Economics, Mortgage Financing
By Robert Freedman, senior editor, REALTOR® Magazine
It’s still early but there are signs the availability of jumbo financing might be improving—although underwriting standards probably won’t ease any time soon. That means the days of creditworthy borrowers having a tough time getting financing for an amount over the conforming loan limit might be ending but they’ll still have to come up with a significant down payment and be prepared to show lots of documentation, like three years worth of tax returns instead of the customary two.

NAR Chief Economist Lawrence Yun says lenders are slowly getting back into the game because the climate of dread is lifting: Wall Street analysts and business executives have recalibrated their performance scenarios to reflect the greatly improved conditions among lower-priced homes (thanks to the home buyer tax credit and steeply discounted pricing). That in turn is creating a virtuous cycle as the improved scenarios help relax concerns over the economy, pushing up equities, which in turn creates the wealth that further increases confidence.

In other words, the improving lower-end housing market and the rising stock market are helping to push big financial services companies back into the business of loaning money rather than hoarding cash. As a result, it’s not just safe agency loans that lenders are willing to make (Fannie, Freddie and FHA) but also non-conforming jumbo loans. That helps further the narrowing of the interest rate spread between comforming and non-conforming loans.

I spoke with Las Vegas luxury home sales specialist Kenneth Lowman yesterday and he says the jumbo market has a long way to go before it’s back to where it needs to be, but, importantly, big loans are being made again. Earlier this year, that wasn’t so clear-cut.

“We recenty did a jumbo loan in record time,” he says. It was for a home listed at a couple of million dollars—obviously not an everyday deal for most salespeople—but it closed in just 22 days. Six months ago, he says, that never would have happened.

Yun predicts that financing for jumbo loans, second homes, and commercial real estate will show marked improvement by the middle of 2010. By late 2011 or early 2012, we might even see more non-agency, private-label loans securitized by Wall Street.

Yet the mortgage market by then will surely be different than it was during the housing boom, and in a good way. Buyers will be far more careful about staying within budget and lenders will be far more cautious about making loans to buyers who aren’t staying within budget.

Yet there remains a big concern: inflation. Although prices remain stable because of continuing slack in the economy (high unemployment, excess business capacity), once the enconomy starts growing again federal budget deficits will create inflationary pressure. The main way to head that off, says Yun, is for the government to produce a credible plan for getting the deficit under control."

http://speakingofrealestate.blogs.realtor.org/2009/10/15/jumbo-freeze-might-be-thawing/

Housing Starts are rising

2009-10-21T11:10:00.000-07:00

Well, not everything is bad in the real estate news, at least!!

"Housing Starts Rise

Housing starts rose 0.5 percent in September compared to August to an annual rate of 590,000, according to a report released Tuesday by the U.S. Commerce Department.

Single-family home construction, which accounts for 85 percent of the market, increased 3.9 percent to a 501,000 annual rate. Multi-family housing fell 15 percent to an 89,000 rate.

Building permits, an indicator of future construction, declined 1.2 percent from the August rate to a 573,000 annual rate in September.

Most of the gain in single-family starts was attributable to a 7.1 percent increase in the South. The other regions fell with the West declining 8.8 percent.

Source: Bloomberg News, Courtney Schlisserman (10/20/2009)"
http://www.realtor.org/RMODaily.nsf/pages/News2009102001?OpenDocument#

First Time Tax Credit further infomation

2009-10-21T11:00:00.000-07:00

Here, here! Let's hope that we do keep the tax credit, and keep on going forward :)

"NAR: Housing Tax Credit Is Working

Consumers are just starting to see the first glimmers of a bright future for the housing market and the overall economy. It’s up to Congress to make that glimmer a reality by building on the momentum created by the $8,000 home buyer tax credit. That's what National Association of REALTORS® First Vice President Ron Phipps, told the Senate Banking, Housing and Urban Affairs Committee Tuesday during a hearing on “The State of the Nation’s Housing Market.”

One of the key ways to do that is for Congress to extend the home buyer tax credit, “The data on the present home buyer tax credit show that the credit has had its intended impact—sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably,” Phipps said. He also pointed out that each home sale generates approximately $63,000 in additional economic activity, providing a tremendous economic boost to the national economy.

“But it is a fragile recovery, and now is the time to build on home sales momentum by extending the tax credit throughout 2010 and expanding it to all home buyers,” he said. The present credit, due to expire on November 30, cannot help new purchasers now who write a contract today—they won’t be able to close before the deadline, and will lose out on the credit, said Phipps. “Without congressional action now, the market and our national economy may freeze again—possibly as soon as this month.”

Make Loan Limits Permanent
Phipps called upon Congress to take action on a number of additional fronts to strengthen the recovery. First, make the FHA and Fannie Mae/Freddie Mac loan limits permanent; these are set to expire on December 31. “Maintaining current loan limits would ensure that families have access to low-cost financing to purchase homes and can refinance problematic loans into safer, more affordable mortgages,” Phipps said.

Secondary Mortgage Markets
In addition, Congress should continue the federal government's involvement in the secondary mortgage market. “Without the government’s involvement in the secondary mortgage market, market participants will have no incentive to reach out to lower-income, creditworthy consumers. We must ensure that the housing market works in all markets and at all times, and that mortgage capital is provided to all potential and qualified purchasers in a way that promotes sustainable homeownership,” said Phipps."

http://www.realtor.org/rmodaily.nsf/pages/News2009102101?OpenDocument
Daily Real Estate News | October 21, 2009

Mortgage Brokers and Mortgage Bankers

2009-10-06T13:26:00.000-07:00

http://www.nga.org/Files/pdf/0805FORECLOSUREBANKER.PDF

"Mortgage Bankers and Mortgage Brokers Perform
Different Functions in the Mortgage Process
■ Brokers Act as Intermediaries between Consumers and Mortgage Bankers
Mortgage brokers are independent intermediaries who bring together prospective borrowers and
mortgage bankers. According to NAMB, a mortgage broker has “a working relationship with
numerous banks and other mortgage bankers and provides the consumer with access to hundreds
of options when it comes to financing a home.”6 Mortgage brokers tend to be small businesses and
frequently have little capital.
Mortgage brokers help arrange loans, performing application-related services, such as requesting
verification of the borrower’s employment, requesting credit and other information, and compiling
borrower documentation.7 Brokers typically do not provide loan funds.8
Brokers can — and do — provide substantial benefits to borrowers and mortgage bankers and contribute
to the efficiency of the mortgage industry. Brokers are an important distribution channel for

6 http://www.namb.org/namb/Mission.asp?SnID=1411867994
7 Until recently, brokers often arranged for property appraisals. Freddie Mac and Fannie Mae recently announced several
changes in their appraisal requirements, including a new policy that prohibits brokers from selecting or compensating appraisers.
See http://www.fanniemae.com/media/pdf/030308_agreement.pdf
8 In most instances, the mortgage broker assigns the mortgage to the mortgage banker at settlement and the mortgage broker
is paid for his or her origination services. This process is known as “table funding.”

A Report on Mortgage Bankers and Mortgage Brokers from the Mortgage Bankers Association
© Mortgage Bankers Association May 2008. All Rights Reserved.

...mortgage bankers’ loan products and, in particular, can enhance mortgage bankers’ ability to serve
traditionally underserved borrowers and communities.
■ Mortgage Bankers Provide Mortgage Funds
Mortgage bankers lend money through various channels: directly to consumers through their own
retail sales forces, by funding loans arranged by brokers or other mortgage bankers, and by purchasing
loans originated by other mortgage bankers. In most cases, mortgage bankers offer their own
products.9 Regardless of the lending channel, mortgage bankers are responsible for underwriting the
loan, which involves evaluating the borrower’s credit worthiness and the value of the home.
Once a loan is funded, mortgage bankers — depending on their business models — pursue various
paths. Some mortgage bankers hold the loans in their own portfolios; others sell the loan to a secondary
market investor. Separately, a mortgage banker may service the loan or sell the servicing rights.
Mortgage banking is highly competitive — mortgage bankers compete with each other and at times,
with mortgage brokers, for customers. Nearly 8,900 mortgage lenders reported under HMDA in
2006.10 Mortgage bankers compete for consumers through price, products, and services. Mortgage
bankers seek to offer attractive interest rates and loan terms and to develop innovative loan products
and services to meet a variety of consumer mortgage needs. Additionally, if a mortgage banker
services loans, they provide continuous customer service and support to borrowers during the life
of the loan.
Mortgage bankers are organized in many forms, such as federal- and state-chartered banks, thrifts,
credit unions, and other depository institutions, as well as non-depository mortgage companies.
Mortgage bankers come in many different sizes, from small businesses to large multinational
corporations.
Differing Functions of Mortgage Bankers and Brokers
Lead to Vastly Different Consumer Expectations
The different functions and services of mortgage bankers and mortgage brokers lead consumers to
have vastly differing expectations of each. Consumer expectations of mortgage brokers often do not
match brokers’ actions and responsibilities, which effectively limits the consumer’s ability to protect
his or her own interests.
9 Mortgage bankers sometimes function as mortgage brokers, offering the loan products of other, larger mortgage bankers.
Where a mortgage banker performs the function of a mortgage broker, MBA believes that the banker should be subject
to the same disclosure requirements as a broker.

10 Robert B. Avery, Kenneth P. Brevoort, and Glenn B. Canner, “The HMDA Data,” Federal Reserve Bulletin, December 2007."

http://www.federalreserve.gov/pubs/bulletin/2007/pdf/hmda06final.pdf

Time to buy is now!

2009-10-06T13:24:00.000-07:00

"Daily Real Estate News | October 6, 2009 | Share
A Historic Time to Buy
Young people just starting to invest and buying their first homes are potentially the winners in this recession.

First-time homebuyers, most between the ages of 25 and 45, accounted for about 45 percent of home sales from January through July 2009, according to the National Association of REALTORS®

"This is a historic time," says George Jaramillo, a 35-year-old business analyst in Atlanta, who recently bought three homes, two of them foreclosures. "It's a great opportunity to make some great gains in the future."

A study by investment company T. Rowe Price points out that investing when prices are low can result in amazing gains. For instance, between 1970 and 1990, the annualized rate of return for the S&P 500 was 11.5 percent.

"We need to be shouting from the rooftops that this is not the time to get out of the market if you're young," says Christine Fahlund, a senior financial planner with T. Rowe Price. "This is the time to be in the market."

Source: The Associated Press, Chip Cutter (10/05/2009)"
http://www.realtor.org/RMODaily.nsf/pages/News2009100601?OpenDocument#

First Time Buyer Tax Credit expiring??

2009-10-06T13:22:00.000-07:00

"First-time home buyer tax credit set to expire
Robert Selna, Chronicle Staff Writer

Wednesday, September 30, 2009

(09-29) 20:28 PDT -- The $8,000 federal tax credit for first-time home buyers is soon to expire, causing anxious house hunters to hustle and prompting a debate in Congress over extending a program that some say is central to the fragile real estate recovery.

The rebate is available to anyone who has not owned a home in the past three years. The government introduced the program in February as part of the stimulus package, and several studies estimate that by the Nov. 30 expiration date, it will have spurred several hundred thousand home sales.

The real estate industry in California and across the nation is lobbying Congress to extend the credit through next summer. Meanwhile, local Realtors and prospective buyers are eager to complete sales - which sometimes take months - not knowing whether the credit will be continued.

"The refund has had a tremendously positive impact," said James Liptak, president of the California Association of Realtors. "Home prices are down considerably, and one of the big things that has made people jump into the market is the credit."

Critics argue that American taxpayers are simply footing a windfall for purchasers who would have bought homes anyway. Real estate industry statistics suggest that approximately 1.8 million people are expected to receive the credit. They also indicate that the rebate spurred 350,000 home sales.

"That means that about 85 percent of the people who got the credit were already going to buy homes," said Ted Gayer, a Brookings Institution economist who focuses on housing and public finance. "The idea of a subsidy is to get people to change their behavior. This subsidy costs a lot of money and is only getting small number of people to change their behavior."

New homeowners Nicole Kitchen and her husband, Jared, said the tax rebate was a significant factor in pushing them to buy their Martinez house this summer. The credit allowed them to purchase a new washer, dryer, refrigerator, stove, television, two couches and other furniture.

The couple amended their 2008 taxes and received the benefit almost immediately.

"We would have had to pay for the new things with a credit card or put a smaller payment down on the house," said Nicole Kitchen, a 31-year-old teacher in Martinez. "This is a great way to boost the economy."

The Kitchens had additional motivation for buying a house, including the fact that the couple's first child was nearly a year old, interest rates were low and prices had fallen dramatically from years past.

Members of the House and the Senate have proposed more than 20 bills to extend and/or expand the credit.

A proposal by Rep. Ken Calvert, R-Corona (Riverside County), mirrors a bill sponsored by Sen. Johnny Isakson, R-Ga. The lawmakers want to offer the tax credit for another year, increase it to $15,000 and make it available to any buyer who stays in a home for at least two years.

Gayer from Brookings estimates that such a program could cost $30 billion. As it stands, the government is on track to spend $15 billion.

"California needs to stimulate demand; there's a lot of inventory out there and increasing the program to $15,000 could help (decrease) some of that supply," said Calvert's spokeswoman, Rebecca Rudman.

Others agree. They say that extending the tax incentive program is worthwhile given the importance of the housing market to the overall economy and the relatively small cost of the credit.

The housing market is unpredictable. It slumped in August after four months of gains. Nationally, sales of existing (not new) homes dropped 2.7 percent. The Bay Area saw a 15 percent decline.

Additional foreclosures also are on the horizon. In 2010, many option adjustable rate mortgages, which were popular in the Bay Area, will begin to readjust. When they do, borrowers will be hit with much higher monthly mortgage bills, possibly triggering the next big wave of foreclosures.

"The economy is trying to gain traction and the housing market is a big piece of that," said Mark Zandi, chief economist at Moody's Economy.com. "We are likely to have a lot of foreclosures next year, so it's good to give everyone who wants to buy a chance to buy."

LAKE COUNTY Foreclosures

2009-09-28T16:15:00.000-07:00

Lake County Foreclosure / Bank Owned Properties~

http://LakeCounty.p3.fnismls.com/publink/default.aspx?GUID=853040a4-9b67-4668-880b-5ea769ba7c8c&Report=Yes

More of the Higher Priced Homes are Selling in Sonoma Co

2009-09-28T15:40:00.000-07:00

Did a bit of searching today... and confirmed that many of the buyers who would be looking in Mendocino County are possibly looking in Sonoma County right now... and this may continue until those good deals and distress sales have slowed to a crawl there!

Searching BAREIS for Residential over $700,000 that has sold in both Mendocino and Sonoma Counties for 2008 and 2009 reveals:

25 sold in Mendocino County for 2008 and 586 sold in Sonoma County for 2008

9 sold in Mendocino County for 2009 and 307 sold in Sonoma County for 2009 so far...

What does this tell us? That Mendocino County has seen a 74% reduction in sales, while Sonoma County has only seen a 47.6% reduction. Which means that those buyers seem to be sticking around Sonoma County as opposed to buying in Mendocino County! Until the bank owned and short sales are cleared out in Sonoma County, I expect this to continue for awhile, too...

Mortgage Rate Info

2009-09-25T11:45:00.000-07:00

"Daily Real Estate News | September 25, 2009 | Share
Mortgage Rates Hold Steady
The average rate on 30-year, fixed mortgages held at 5.04 percent for the week ended Sept. 24—down from 6.09 percent a year ago, according to Freddie Mac.

Interest on 30-year, fixed loans has declined in the past three weeks, according to Freddie Mac chief economist Frank Nothaft, and the Mortgage Bankers Association reported a 13 percent increase in application volume last week.

Other rates performed as follows:

15-year fixed loans dipped for the week from 4.47 percent to 4.46 percent.
Five-year hybrid adjustable-rate mortgages were flat at 4.51 percent.
One-year ARMs fell from 4.58 percent to 4.52 percent."

Source: Wall Street Journal (09/25/09)
http://www.realtor.org/RMODaily.nsf/pages/News2009092503?OpenDocument

Foreclosure Homes coming on another wave...

2009-09-24T12:14:00.000-07:00

More Foreclosures on the way...

"Daily Real Estate News | September 24, 2009 | Share

Is the Foreclosure Slowdown Temporary?
Legal entanglements and well-intentioned home-owner-assistance efforts have slowed the pace of foreclosures, but eventually many of these distressed homes will hit the market anyway.

Some observers say these delays are prolonging the housing crisis and creating a “shadow” inventory that will cause more housing market pain.

"There's going to be a flood [of bank-owned homes] listed for sale at some point," says John Burns, a real-estate consultant based in Irvine, Calif.

Burns believes that when the onslaught hits, it will drive down home prices still further. On average, he expects home prices to fall another 6 percent next year.

Ivy Zelman, CEO of Zelman & Associates research firm, estimates that there are 3 million to 4 million foreclosed homes that will hit the market in the next few years. How traumatic the impact will be depends on whether the flow of homes going up for sale resembles "a fire hose or a garden hose or a drip," she says.

Source: The Wall Street Journal, Ruth Simon and James R. Hagerty (09/23/2009)"

http://www.realtor.org/RMODaily.nsf/pages/News2009092403?OpenDocument

Building Confidence?

2009-09-17T12:42:00.000-07:00

"Daily Real Estate News | September 17, 2009
Builder Confidence Is Building
Home builder confidence in the housing market rose in September for the third month in a row from 18 to 19, which is the highest level since May 2008, according to the monthly index calculated by the National Association of Home Builders and Wells Fargo.

The index hit a low of 8 in January. Any number below 50 is considered negative.

The NAHB credits the first-time home buyer tax credit for this summer’s market improvement, as well as low interest rates and home prices, says Joe Robson, NAHB’s chair.

The index also projects the strength of the market going forward. That measure fell one point in September to 29 because of the expiring tax credit. In a statement, Robson says, “Builders are concerned about what will keep the market moving once the credit is gone.”

Source: Bloomberg, Bob Willis (09/16/2009)"

http://www.realtor.org/RMODaily.nsf/pages/News2009091702?OpenDocument

Coldwell Banker JD Power and Assoc Award

2009-09-17T12:19:00.000-07:00

Good to hear! I know that I certainly do try to give the best I can in terms of service, and it' s great that Coldwell Banker in general has a good reputation, too!
Take care,
Karena

"J.D. POWER AND ASSOCIATES RANKS COLDWELL BANKER HIGHEST IN HOME SELLER SATISFACTION
PARSIPPANY, N.J. – Sept. 17, 2009 – Coldwell Banker Real Estate LLC ranked highest among real estate companies in satisfying home sellers according to the recently released J.D. Power and Associates 2009 Home Buyer/Seller StudySM.
“This recognition is a testament to the brand’s legacy as an industry leader, our commitment to innovation and, above all, our powerful network,” said Jim Gillespie, president and CEO of Coldwell Banker Real Estate LLC. “With unsurpassed local knowledge, expertise and work ethic, we at Coldwell Banker have always felt that our network of professionals is the greatest in the industry, and we’re pleased J.D. Power and Associates recognized it.”
The independently administered study measured customer satisfaction of homebuyers and sellers among the largest national real estate firms. The study incorporates more than 3,100 evaluations from 2,801 respondents who bought or sold a home between April 2008 and June 2009. The survey was fielded between April and June 2009.
J.D. Power and Associates examined four factors in the home-selling experience including: agent; marketing; office; and package of additional services. Among home sellers, Coldwell Banker Real Estate ranked highest with a score of 815 and performed particularly well in all four factors.
Coldwell Banker Real Estate also ranked particularly high in the home-buyer segment. The brand ranked second with a score of 801 on a 1,000-point scale, performing particularly well in the office factor.
Complete results for the study can be found here.
About Coldwell Banker®
Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. In 2008, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,500 residential real estate offices and approximately 100,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on home building and home improvement, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
### "
From cbnet@email.coldwellbanker.com email dated 9/17/09

Tax Credit information

2009-09-16T15:58:00.000-07:00

More information regarding the tax credit...

"The tax credit does not have to be repaid.
The tax credit is equal to 10% of the home purchase up to a max of $8,000.
...available until December 1, 2009.
... The buyer must live in the house for 3 years, or they will be obligated to pay back the credit.
Just claim it on your return. No other forms or papers have to be filed..."
Thanks, lender Rick Costa for this information. He can be reached at 707 529 3374 (cell) for further questions.

Thanks, and have a great day!
-Karena

tax credit to stay around ??

2009-09-16T15:54:00.000-07:00

Will the tax credit stay around for awhile? Here are some thoughts...

"Daily Real Estate News | September 16, 2009 |
Economists: Extend the Housing Tax Credit
More than 40 percent of all home buyers in 2009 will qualify for the federal tax credit, costing the government about $15 billion, twice the original estimate, but most housing experts applaud the policy and favor expanding it.

Now the decision is up to Congress.

Mark Zandi, chief economist for Moody’s Economy.com, believes that the credit should be expanded to all homebuyers, even investors, through summer of 2010. “The risks of not doing something like this are too great,” he said. “I don’t think the coast is clear.”

James Glassman of JPMorgan Chase also favors expanding the credit but continuing to limit it to first-time buyers.

Industry members who are lobbying for the extension are optimistic and say they believe an extension will be approved in some form. “There will be a lot of water under the bridge, a lot of compromise, between now” and a final bill, said Richard A. Smith, chairman of the Business Roundtable’s Housing Working Group.

Source: The New York Times, David Streitfeld (09/15/2009)"
http://www.realtor.org/RMODaily.nsf/pages/News2009091601?OpenDocument

More information on those Appraisal rules...

2009-08-26T09:02:00.000-07:00

Here is some more information about the newer appraisal rules that went into effect earlier this year... there are some additional loan rules/etc that will be introduced soon that will increase the length of escrow time and possibly interfere with the buyer's timing of rate locks/etc. yikes!!

Take care, Karena

"Realtors: Home Appraisal Rule "Destroying" Recovery
Written for the web byPosted By: George Warren, Reporter

CARMICHAEL, CA - Real estate agents say a new regulation aimed at reducing mortgage fraud is hampering the market's recovery.

"I've never seen a market like this where a ready, willing and able buyer couldn't buy the property," said veteran broker Bert MacBride.

MacBride just lost three deals in a row because of the Home Valuation Code of Conduct (HVCC), which establishes restrictions on appraisals for conforming home loans. The HVCC took effect May 1.

The HVCC prohibits mortgage brokers and Realtors from contacting local appraisers to prevent undue influence. Instead, lenders draw from a pool of appraisers through an intermediary known as an appraisal management company.

"These appraisers may be 200 or 300 miles from the marketplace," said Rick Cunningham, a Fair Oaks appraiser who has seen his business drop by two-thirds since the HVCC took effect. "They (out-of-town appraisers) lack the data to do a competent report."

MacBride spoke to News10 in front of the Carmichael duplex where his latest transaction collapsed. The duplex was listed at $180,000 and attracted four offers. MacBride's was the highest at $188,000.

But a Bay Area appraiser valued the property at $165,000. The lender balked and the deal fell through.

MacBride said the appraiser probably used comparable properties that were bank-owned or in Citrus Heights, which is just a block away.

"There's something wrong with this appraisal process that needs to be corrected," MacBride said.

Tracey Saizan, the Keller Williams agent listing the duplex, said the seller has now dropped his price to $165,000 to reflect the appraisal and will lose $23,000 as a result. She said the seller also spent $4,400 unnecessarily on pest repairs before the deal fell apart.

"This (the HVCC) is destroying any chance we had of turning this market around," Saizan said. "We're going backwards."

Rep. Doris Matsui, D-Sacramento, has sent a letter to HUD Secretary Shaun Donovan asking him to review the HVCC.

by George Warren, GWarren@news10.net

Created: 8/25/2009 4:13:24 PM Updated: 8/25/2009 7:25:33 PM "

Say No to Spending More Money on Appraisals

2009-08-19T14:09:00.000-07:00

Remove the insane Appraisal Rules~
Please take a moment and go to
http://www.hvccpetition.com/SignPetition.aspx
and say NO to this regulation that has already cost consumers and buyers needless hundreds of additional dollars...

"URGENT HVCC UPDATE:
Thanks for signing our petition. HVCC Continues to devastate home values across the US. We fear that with higher Fannie and Freddie loan limits it will carry through to our former “jumbo” markets, leading the country even further into recession. As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). H.R. 3044 now has over 54 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country. Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code.
ThinkBigWorkSmall applauds the introduction of H.R. 3044 and would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.
Please sign and forward the following petition and forward to everyone you know in the industry and ask them to forward to their representatives:
www.hvccpetition.com"

People Still Want to Buy Homes

2009-08-19T13:51:00.000-07:00

LOOK!! People still want to own homes out there :)
Take care,
Karena Jolley
MendoGroup team
CBMR
http://www.MendoGroup.com

"Daily Real Estate News | August 19, 2009 | Share
Study: Americans Still Want to Be Home Owners
Despite all of the bad news in the media about homeownership and mortgages, most Americans still believe buying a home is a great investment, according to a new study commissioned by Bankrate.com.

Among the findings from the study:

92 percent say that a home is a good investment for the future.
48 percent worry about losing or being unable to afford their homes.

"These results provide an interesting illustration of the public's mindset in a difficult economy," says Julie Bandy, editor in chief at Bankrate. "While nine out of 10 still believe in the American dream of homeownership, nearly half worry about losing their homes.”

Source: Bankrate.com (08/18/2009)"

http://www.realtor.org/RMODaily.nsf/pages/News2009081901?OpenDocument

Water Shortage issue in CA

2009-08-19T10:40:00.000-07:00

Below is an article on the water shortage crisis in CA and the affects on farmers, too. A difficult situation, and no easy answers...
Take care, and talk to you soon,
Karena Jolley of the MendoGroup team
Coldwell Banker Mendo Realty
707 354 2999
www.MendoGroup.com

"Severe water shortages draw renewed focus
Issue Date: August 19, 2009

By Kate Campbell
Assistant Editor

With reservoirs at alarmingly low levels, a key official said the federal government will make it a top priority to restore the Sacramento-San Joaquin Delta and ensure reliable water supplies in California. Deputy Interior Secretary David Hayes told people who packed a Sacramento water forum last week that the Obama administration considers the delta ecosystem to be of national significance.

"It's the largest estuary on the west coast of the Americas, north and south," Hayes said. "It provides important ecological benefits and more than 20 million Californians rely on the delta for part of their water supply."

More Information
Storage in Key Reservoirs (PDF, 2.4 MB)
Storage in San Luis Reservoir has been hurt by restrictions on water pumping from the Sacramento-San Joaquin Delta. Other key reservoirs also hold less water than average for mid-August.
He likened the delta's importance to that of the Everglades, the Great Lakes and Chesapeake Bay.

Hayes said Interior Secretary Ken Salazar will hold a public forum in Washington, D.C., next month to discuss delta restoration plans and improve supply reliability.

He said solutions must involve both ecosystem restoration and structural improvements to the state's water system.

"This ecosystem is one of the jewels of the West Coast," Hayes said. "Some new engineering may be what saves California."

Water storage behind Oroville Dam stands at less than 60 percent of average for this time of year.Presentations during the forum included a summary of the findings of the Governor's Blue Ribbon Task Force on the delta and highlighted ongoing efforts to shape the Bay Delta Conservation Plan, in which the California Farm Bureau Federation has been heavily involved.

Chris Scheuring, CFBF managing counsel for the Natural Resources and Environmental Division, who attended last week's forum, said the event may help build momentum for solutions to the state's ongoing water crisis.

"Farm Bureau continues to work toward water supply solutions. Regulatory relief remains a concern, but the real solution is probably a physically improved infrastructure, including more surface water storage, if we are to get California out of crisis mode," Scheuring said.

"That also means conveyance improvements that restore delivery to points south of the delta, while taking care to protect our delta farmers and stabilize the delta ecosystem along the way," he said. "Like many other organizations and government agencies, Farm Bureau is devoting a great deal of its resources toward that end."

State officials also said a series of public information workshops on the Bay Delta Conservation Plan will update the public on progress toward action steps. The workshops are slated for later this month in Brentwood, Stockton and Walnut Grove.

In addition, the state Department of Water Resources has been holding a series of "get ready" workshops that stress drought emergency planning and stepped-up water conservation aimed at water agencies.

Ron Milligan, operations manager of the U.S. Bureau of Reclamation's Central Valley Project, said that as the 2009 water year ends there is "serious concern about water supply levels" and the limited resources being carried into the 2010 water year.

Because of multiple dry years and declining reservoir levels, he said the CVP has carryover this year of about 1 million acre-feet less than the historic average for this time of year.

"The past year has been challenging," Milligan said, because new regulations based on a U.S. Fish and Wildlife Service biological opinion limit water transfers from the delta to protect delta smelt.

"Clearly, some areas of the state have had record low water allocations, but in other areas contractors were getting their full allocations," he said. "But right now, our most significant reservoirs only have about 22 percent of normal water storage for this time of year."

The DWR Drought Operations Center reported statewide reservoir storage as of Friday stood at about 75 percent of the historic average for the date, but with individual key reservoirs much lower.

Milligan said the Bureau of Reclamation is doing everything it can to remove institutional and regulatory barriers to help move water from districts that may have supplies to those that are short. The drought water bank and private water users north of the delta have been able to make about 600,000 acre-feet available for transfer in 2009 to districts in need.

Wendy Martin, DWR statewide drought water coordinator, outlined preparation efforts for the 2010 water year.

"The reality is we just don't know what next year will bring, but whatever is done to prepare must be done now," Martin said. "I hope it rains like crazy, but I'm afraid it might continue dry."

She said water conservation continues to be a "critical part of the equation" for drought response. Programs to improve conservation by districts, industries and local communities are being rolled out now. A statewide public awareness campaign is being launched on radio and television. The federal government has just made $140 million available for the state's drought response.

"We have tremendous opportunity to save water, by individual water delivery systems, businesses, agriculture," Martin said.

Officials stressed at last week's forum that the state's water supply is static and, given continued population growth and the unknown impacts of climate change, future water shortages are likely if something isn't done.

In a separate action last week, more than 50 mayors from the San Joaquin Valley called on President Obama to visit the area himself, saying three years of drought coupled with court-ordered protections for threatened fish species have sapped critical irrigation supplies.

With idled land have come thousands of lost jobs on farms and in related businesses. Unemployment rates have reached 40 percent in some western San Joaquin Valley communities, and local officials issued the invitation to the president as part of continuing efforts to call attention to the economic impact of water policy.

(Kate Campbell is an assistant editor of Ag Alert. She may be contacted at kcampbell@cfbf.com.)

Permission for use is granted, however, credit must be made to the California Farm Bureau Federation when reprinting this item."
http://www.cfbf.com/agalert/AgAlertStory.cfm?ID=1365&ck=CF1F78FE923AFE05F7597DA2BE7A3DA8

More taxes we don't need in real estate

2009-08-18T16:25:00.000-07:00

Hello, check this out-- new bills that cost us more money in the long run!!
Can they just work to fix our economic situation WITHOUT always thinking of new ways to tax us to death?? This one sounds like its small in the beginning, but DO NOT allow this ball to roll downhill... more and more transfer taxes/etc will really add up...

"How AB 827 & 985 affect your business:

AB 827 allows counties to collect up to an additional $3 for the recording of a real estate document, on top of other existing recording fees. Counties will then be allowed to use the proceeds from the additional "fees" to pay for the archiving of historical documents, including those from local agency meetings, records pertaining to transportation or "other records of public or historical" interest. Again, since the charge doesn't directly pay for the RECORDING of documents, it is a TRANSFER TAX, and under existing law must be approved by the voters.

In the case of AB 985, county recorders are using computer scanning now to search for, and expunge, social security numbers from records and C.A.R. has sought to have the same mechanism applied to illegal restrictions. The author has refused. C.A.R. has continued to oppose the bill because it does not utilize modern data processing methods to search for illegal restrictions and is a disguised tax. Over the last three years only about two dozen correction requests have been received statewide. AB 985 will encourage local government to overcharge for a correction program and use these funds for other programs. The $60 million the bill will raise in the first three years far exceeds the costs of actually correcting the property records in question. Again, since the fee collected does not directly pay for the RECORDING of documents, it is a TRANSFER TAX, and under existing law must be approved by the voters."

http://takeaction.realtoractioncenter.com/carealtors/notice-description.tcl?newsletter_id=42608098&r=Fp3nAn6aN5kj

zillow... good for some areas, bad for others

2009-08-13T15:29:00.000-07:00

Hey, everyone. Zillow can be great for residential neighborhoods, and now there are statistics to show where it can fall short: rural Counties like Mendocino, where the houses and properties are not all cookie-cutter, has a much larger margin or error for Zillow.
Look at
http://www.zillow.com/howto/DataCoverageZestimateAccuracyCA.htm
and see for yourself. It does not mean that everyone should stay away from Zillow-- it has great uses! But, just be aware... that's all!
Take care, and until next time,
Karena Jolley
MendoGroup team
Coldwell Banker Mendo Realty
707 354 2999
mendogroup@yahoo.com
www.mendogroup.com
lic 01482063

Confidence, Everyone!!!!!!!!!

2009-08-06T13:48:00.000-07:00

Okay, I had not known about this one before (and they have not asked for my opinion, either!!)

The Real Estate Confidence Index at http://agent.point2.com/reci.asp shows what real estate professionals are feeling every month. "They rate the current local real estate market, what they expect over the short-term (3-6 months), and what they expect over the medium-term (6-12 months)."

How are you feeling?? Depending on the day, I have a slightly different viewpoint!
Take care,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999888 590 3334 fax
www.MendoGroup.com
http://mendogroup.blogspot.com/
dre# 01482063

2009-07-29T07:58:00.000-07:00

Don't forget, you first-time buyers... if you are interested at all, now is the time!! the deadline is this year, and if not extended, that will be that for this great tax credit that does not have to be repaid (in years past, it did)... check out this article, and check in with me if/when you have questions... and want to know the local market conditions.

"First-Time Homeowners Offered Tax CreditsBy Holden Lewis, bankrate.com Published: 5/14/2009This year some first-time homebuyers will charge their down payments to the taxpayer.Buyers will be allowed to use their first-time homeowner tax credits as down payments when they get FHA-insured loans, Secretary of Housing and Urban Development Shaun Donovan announced this week. Depending on the buyer's tax-filing status and the price of the home, the tax credit can be as much as $8,000.
The National Association of Realtors hailed the announcement, and asked taxpayers to subsidize all home purchases, and not just for first-time buyers.
The decision to finance first-time homebuyers' down payments with tax dollars was a highlight of a week that saw little change in mortgage rates.
Mortgage rates have been remarkably steady in the last few weeks. The Obama administration successfully adopted a policy of driving mortgage rates down and keeping them there. Observers believe that the Treasury and Federal Reserve are keeping rates in a narrow range by buying mortgage-backed securities whenever rates threaten to rise.
Donovan boasted about the effort to keep mortgage rates low when he spoke this week before a meeting of the National Association of Realtors. "And we are taking action to further help the housing market recover," he said as he introduced the down payment subsidy.
The down payment initiative is built onto this year's first-time homebuyers' tax credit, in which qualified buyers can get an income tax credit of 10 percent of the home's price, or $8,000, whichever is less. The credit is half that for spouses filing separately, and the credit phases out for higher-income filers.
Under the plan announced by Donovan, buyers can get a piggyback mortgage or an unsecured bridge loan for the amount of the tax credit when they get a Federal Housing Administration-insured mortgage. The piggyback or bridge loan can take the place of a down payment. Typically, FHA-insured loans require a down payment of at least 3.5 percent.
Borrowers will be expected to pay off the piggyback or bridge loans when they claim the tax credit on their 2009 returns next year or their amended 2008 returns this year. To claim the tax credit, buyers have to buy by the end of 2009.
"We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network," Donovan told the Realtors. He cited a home builders' study that claimed that the tax credit will stimulate 101,000 sales to first-time buyers, and another 59,000 home sales to people who will be able to buy homes because first-time buyers bought their homes.
By using tax credits as down payments, buyers won't have to put some of their skin in the game by shelling out their saved-up cash to make down payments.
For years, the FHA grudgingly allowed down payment assistance programs, or DPAs, to operate. DPAs were a mechanism by which home sellers could indirectly fund buyers' down payments. A seller isn't allowed to supply the buyer's down payment money.
But DPAs exploited a loophole that allowed charitable organizations to make down payments for needy buyers. The DPAs accepted "charitable contributions" from sellers, then gave equivalent "donations" to the buyers to cover their down payments.
After years of griping about higher default rates on loans that used down payment assistance, the FHA persuaded Congress to ban DPAs last October as home sales were declining precipitously. Now it appears that the FHA will let the IRS replace down payment assistance programs.
The DPA business was dominated by two nonprofits: AmeriDream and Nehemiah. AmeriDream president Ann Ashburn told Bankrate: "By setting this policy, the FHA is tacitly acknowledging the mistake it made last October when it convinced Congress to ban charitable down payment assistance. That mistake cost hundreds of thousands of Americans the opportunity to become responsible homeowners, accelerated the decline in home prices, and likely delayed the housing market's recovery."
Ashburn added, "Down payment assistance must be a long-term, privately funded program, not a short-term subsidy funded by the U.S. taxpayer." She supports H.R. 600, a bill that would allow DPAs to resume their activities.
In response to the FHA's new down payment policy, the National Association of Realtors patted itself on the back. "Last year, NAR asked Congress to pass housing stimulus legislation, which passed and is beginning to show results," the Realtors' president, Charles McMillan, said."
http://www.frontdoor.com/Home-Finance/FirstTime-Homeowners-Offered-Tax-Credits/55087

Take care, and until next time,
Karena Jolley of the MendoGroup team
Coldwell Banker Mendo Realty Inc
lic 01482063
phone 707 354 2999
www.mendogroup.com

2009-07-22T10:18:00.000-07:00

Okay, this one is a bit scary-- however, most of us experienced agents have come in contact with a property that left us wondering... obviously, it is so difficult because we are not experts!! and therefore see many situations where personal property is left behind, homes are damaged, etc... but we don't necessarily know what the story is behind the mess. Now, I can say that I have seen yellowing on walls before, but the older couple that had lived there were persistent smokers (the place smelled like old, stale cigarette smoke, too)-- so, sometimes there can be another explanation? But, that house certainly did not have yellowing sinks and showers, too! Bon apetit, and I'll try to find a "lighter" article for next time.

"5 Signs Your Listing May Have Once Been a Meth LabJuly 16, 2009 by Melissa Tracey By Melissa Dittmann Tracey
The New York Times ran an article this week (”Illnesses Afflict Homes With a Criminal Past” by Shaila Dewan and Robbie Brown) that details a story about a family who moved into a spacious home in Winchester, Tenn., only to soon start battling years of illness — from breathing problems to seizures and migraines to kidney problems.
Their home was making them sick.
Five years after moving into the home, the family discovered the home had once been used as a meth lab.
And apparently these contaminated residences are not all that uncommon. What’s more, some may even be hitting your local market.
“Federal statistics show that the number of clandestine meth labs discovered in the United States rose by 14 percent last year, to 6,783, and has continued to increase,” the New York Times reports.
View a U.S. Drug Enforcement Administration map of meth lab incidents by state to see how prevalent it is in your area: http://www.usdoj.gov/dea/concern/map_lab_seizures.html
Chemist Lynn Riemer Of The North Metro Drug Task Force provides the following list of signs a meth lab may have been present in a home:
1. Yellow discoloration on walls, drains, sinks and showers.
2. Blue discoloration on valves of propane tanks and fire extinguishers.
3. Fire detectors that are removed–or taped off.
4. Burning in your eyes, itchy throat, a metallic taste in your mouth, or breathing problems when in the home.
5. Strong odors that smell similar to materials often found in a garage, such as solvent and paint thinner, or odors of cat urine or ammonia.
About 20 states have passed laws that require meth contamination cleanup. Cleanup can be costly, though. The family described in The New York Times article would need $30,000 or more to get the necessary cleanup, and that amount doesn’t even take into account their medical bills from living in a contaminated house for so long.
Have you ever come across a house you suspected was once used as a meth lab?"
http://styledstagedsold.blogs.realtor.org/2009/07/16/5-signs-your-listing-may-have-once-been-a-meth-lab/

Take care, and until next time,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999
www.MendoGroup.com
http://mendogroup.blogspot.com/
dre# 01482063

Lease Options, anyone??

2009-07-21T13:45:00.000-07:00

These lease options can be a great deal, but are not the most common out there. Not every seller is comfortable with this option, and not every seller has the financial ability to offer this to a buyer-- but there can be incredible flexibility with the details of a lease-option, which of course I can go over with anyone who has questions :)

"Daily Real Estate News July 21, 2009 ShareLease-Purchases on the Rise One way that buyers without enough money to get a mortgage can purchase a home is with a lease-purchase agreement.
Usually, the terms of the deal include a lease and an option to buy with part of the rent going toward the downpayment. The forced savings helps buyers amass enough to buy the house in the specified time frame, usually three to five years.
Cindy Walker, an associate with South Island Real Estate in Melbourne Beach, Fla., recently helped a young couple negotiate such a deal. She received a rental commission for the lease arrangement, and she will get a sales commission if the purchase option is executed.
Some real estate professionals find this arrangement unacceptable, but Walker says, “I look at it as money in the bank."
She offers these tips for anyone contemplating using a lease-purchase option:
Don’t be afraid to ask the seller if the owner would accept a lease-purchase agreement. Sellers might find it attractive once they understand it will generate regular rental income. Negotiate how much money will go toward the downpayment and whether the buyer or the seller or both will handle maintenance and repairs. Avoid prepayment penalties. No prepayment penalty increases the incentive to do the deal quickly. In most cases, that’s a good thing from both the buyer’s and the seller’s points of view.
Source: Florida Today, Anne Straub (07/19/2009)"
http://www.realtor.org/RMODaily.nsf/pages/News2009072103?OpenDocument

Take care, and talk to you later,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999
www.MendoGroup.com
dre# 01482063

Next wave of foreclosures coming while Investors dive in...

2009-07-21T13:31:00.000-07:00

What a crazy world we live in right now!! Here we are, with prices the best in years, and multiple offers on the lower priced homes right now... and the next wave of foreclosures looming at us. My hope is that we all learn something from these times, so that we are not doomed to repeat in 20 years or so!!

"Investors Drive Foreclose Prices Up Home shoppers in parts of the country with lots of foreclosures are finding it increasingly difficult to buy. Investors are bidding up prices thousands above the original asking price.
Federal legislation slowing the number of foreclosures is adding to the problem by reducing the number of homes on the market. For instance, in Las Vegas, one of the areas where the bidding problem is greatest, home inventories are down 10 percent since March, according to the Las Vegas Association of REALTORS®.
When a bidding war erupts, the problem is particularly difficult for traditional buyers because investors are usually cash purchasers. They can bid up a property without concern whether the appraisal will prevent them from getting a loan.
Experts say the problem is not unlike the situation at the height of the housing bubble. "This market is about as abnormal as the hypermarket that we came out of a few years ago," says Jay Butler, director of the Realty Studies program at Arizona State University.
Source: The Associated Press, Jonathan J. Cooper (07/20/2009)"
http://www.realtor.org/RMODaily.nsf/pages/News2009072102?OpenDocument

Take care, and talk to you next time,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999
faxwww.MendoGroup.com
dre# 01482063

Wednesday in Real Estate

2009-07-01T13:03:00.001-07:00

The wall next door is shaking as the construction workers intently continue with their remodeling job. The sheetrock, I fear, is taking a beating, though! Being in my office right now, subjected to the noise and shaking, is preferable to being outside in those hot, blistering temperatures. Just when it starts to feel warm in here, I stick my toe outside and am grateful all over again for an air-conditioned office that comes with coffee and cool water :)

Had to make a call earlier to a client, asking if his house has a sprinkler system (yes, and timers as well). So many things I try to remember about a listing that I have for sale, so that on a moment's notice, I can talk about it to an interested party... but there are always details that escape me. Good to check, and now I shall let the agent who asked the question know-- yes!

Lots of people out there looking for properties right now-- sometimes it can be tricky to get financing for some of these low priced fixers, but there are some great deals! http://www.ushud.com has a great ability to search for foreclosure and bank-owned homes, but if you want specific information for Mendocino or Lake Counties, just email me-- MendoGroup@gmail.com and I can set you up with an automatic email service that lets you know when those great buys come on the market (or you can go to http://www.mendogroup.com and search for properties).

okay, enough with the pitching. it's just that several people have told me in the last few days that they like searching both sites.