Sold on Sacramento

Buyers

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Sacramento Homeowners HAMP’ERED

It has been a year since 99% of America became frustrated with the Federal Government and the TARP program. And as sure as the sky is blue it has not done much to help the common taxpayer. It has encumbered the current and future taxpayers with a debt that will take years to overcome.

The silver lining was supposed to be the famed HAMP Home Affordable Modification Program. Well I hate to be the bearer of bad news but this program just might go down in history as the biggest failure of this administration. Why? Because I believe that there are only two facts of this economic downturn that need to be addressed for us to move forward Unemployment and Toxic Mortgages.

Yes, thousands of underwater Sacramento homeowners have submitted the required documents and are in or are awaiting their “Trial Modification Program “. And are now going to be helped by their Banks with the Aid of the Federal Government……………………………………..

Now these homeowners who are having legitimate financial hardship one way or another are supposed to patiently pay a trial payment and wait for their re structured deal. The problem is that no one is getting final modification approval. I talk to no less that a hundred homeowners a week who are genuinely trying to figure out what the best solution is for their underwater mortgage and their family. Many of them have been on trial plans for 6-7 months. Remember these were supposed to be 3 month plans. I have yet to see a single loan re structured in such a way to truly address the fact that these Sacramento homeowners are severely underwater with their current mortgage. And I’m not holding my breath.

If not a modification what is the answer??  That is a tough one. The situation a different for every borrower. You should talk to a professional that can offer knowledge of the different options so that you can make an informed solution. I would recommend getting several opinions. If you have questions feel free to give me a call at (916)332-1292 and we can discuss your situation privately.

Fast Friday Snapshot of Sacramento Real Estate

Week of November 20, 2008

This is the first of a weekly market snapshot for Sacramento Real Estate.  In the coming weeks I hope to bring you the fast facts driving the Sacramento Real Estate Market by bringing you the market statistics in an easy to understand format.

Distressed properties are still the driving force in our market and I expect them to be for the next several years. Currently the Sacramento Housing market remains  very active at all price points up to 350K.  Above 350K is certainly moving as Buyers at this price point and above are snatching up some tremendous bargains on distressed properties. We have an 2.0 month supply of homes in the marketplace. A stable real estate market is considered to be a 6-7 month supply. For the last several months Buyers have struggled with the fact that there are multiple offer situations on available properties. Our current market is short of inventory, I do not expect this to change since the number of foreclosures continues to be slowed down by the various government and bank programs. Affordability is certainly back in our marketplace, it is anybody’s guess where the market will go from here. Unemployment will be the driving force in the economic recovery.

California Unemployment Rate :  12.5 % (  Ten Year High )

30 Year Mortgages Rate: 4.875 %

	1 month			1 year			15 months
	Sep 09	Oct 09	% Change	Oct 08	Oct 09	% Change	Aug 08	Oct 09	% Change
For Sale	3243	3325	2.5%	8038	3325	-58.6%	8280	3325	-59.8%
Sold	1642	1634	-0.5%	2154	1634	-24.1%	1949	1634	-16.2%
Pended	2286	2395	4.8%	2236	2395	7.1%	2244	2395	6.7%

Sacramento Mortgage Modification

With so many Sacramento homeowners underwater mortgage modifications are very popular.

What is a loan Modification?

A loan modification is an agreement between you and your lender to change the terms of your note. The goal is to reduce your monthly payment. To accomplish this, lenders will typically modify the length term (ex. 30 year to 40 year.), interest rate reduction, or a combination of the two. In my experience it is rare that they will reduce your principal balance.

Who negotiates a Loan Modification?

You! That’s right you. In troubled waters, sharks appear. The declining real estate market in Sacramento is no different. I have heard of services that charge you an advanced fee to modify your mortgage. In 90 % of cases you can negotiate with your lender yourself. Some of the law firm based negotiators look for legal problems in you original note and use that violation as leverage to negotiate new terms. In the majority of cases you should negotiate your loan modification by calling the lender directly at the phone number printed on your monthly statement.

If you are having trouble making your payment on your Sacramento area property and would like to talk to someone about you options feel free to e-mail me at natesisam@gmail.com or give me a call at (916)332-1292. I would be happy to point you in the right direction.

California State Budget Crisis Affects Home Buyers

The State of California is famous for having programs for everything, that is half the reason why our state is facing a fiscal meltdown. I truly believe that our state has enough money to operate and operate effectively offering many services from mandatory to humanitarian. BUT spending money outweighs the same common sense that we all must use in our own household budgets to survive. They waste money every day spending the State of California into bankruptcy.  Now Sacramento Valley home buyers are feeling the effects of the budget shortfall. I will admit that I am a free market, free thinking person. However I also know that I can always learn something new and I embrace that. I have been an advocate of the CalHFA program, it opens up opportunity for people who could use a hand in home ownership. Recently due to the state budget crisis the CalHFA program has been suspended.

The problem is that the Pooled Money Investment Board (PMIB) has stopped loaning money to CalHFA. The PMIB sees problems on the horizon with the State not being able to repay the bonds that are issued to fund the CalHFA programs. The PMIB is scheduled to meet again in January, If you were hoping to get help form the CalHFA I would not count on these programs being funded until the California State Budget is stable. I would advise contacting a Real Estate Professional to explore to options that are available to you. I would be happy to talk to you about the options for first time home buyers give me a call at (916)332-1292.

California Housing Finance Agency

This is the homepage for CalHFA. you will find all of the information about the programs offered, and what is available.

Here is the quote taken from the statement by the CalHFA

Effective immediately, CalHFA is suspending the following active CalHFA First Mortgage Fixed Rate Loan Programs and Down Payment Assistance Programs:

•·     30-Year Fixed Mortgage products, including: Moderate Income, Low Income ,Nonprofits & Affordable Housing Partnership Program (AHPP), Extra Credit Teacher Program (ECTP)

•·     California Homebuyer’s Down Payment Assistance Program (CHDAP)

•·     Extra Credit Teacher Program (ECTP)

•·     School Facility Fee Down Payment Assistance Program (SFF)

These programs are being temporarily suspended as a result of the action taken by the Pooled Money Investment Board (PMIB) on December 17, 2008. The PMIB loans money to state agencies to advance program funds which will later be repaid through bond issuances. CalHFA uses a PMIB loan to initially fund its Conventional 30-Year Fixed Mortgage and down payment assistance programs.

Best Buys in Fair Oaks Real Estate

I am always helping buyers in the Fair Oaks area. While I work throughout the Greater Sacramento Area with buyers and sellers of real estate, Fair Oaks has always been an area of focus for me. For the last week or so I have been looking for a great value in Fair Oaks for one of my clients. Along the way I have found several great deals that I thought I would pass along.

Fair Oaks has an interesting mix of properties, we have always had a diverse home inventory. That inventory has become more diverse since the last housing boom left no new build able lots in Fair Oaks. It is common to find quaint cottage style homes and several driveways up a Mediterranean styled villa. Today my best buys in Fair Oaks represent a nice cross section of what Fair Oaks offers. The home values within the Fair Oaks community have remained stronger than adjacent zip codes. I attribute that stability to the fact that it is a well established community with less new development. There are however quite a few bank owned bargains in Fair Oaks. If you would like to talk about any of these homes or about the market in general feel free to contact me at (916)332-1292.

7644 Royal State Court

Wow ! This is what is called an Equity Sale, that’s right a clean sale between the buyer and seller. This property has too much to list. At $339,00 I am calling this the best Value in Fair Oaks.  1746 Sq. Ft. 4 Bed 2 Bath. Worth a look if you are in the market for something that is move in ready.

4824 Massey Lane

This is Farmer Bobs house. It is exactly what you always imagined when you were buying pumpkins at that favorite Fair Oaks farm on sunset. Well now you have the Massey lane development with Farmer Bobs house still in tact. Potential here depending on how the CC and R’s were drafted with respect to this house.

7182 Palace Circle

Nice location within the Bird Trac. This REO would need to go on a 203K loan. The bones of this property are good but the master bath and kitchen need to be finished on this owner started remodel. This property takes place as the best Bargain in Fair Oaks needing work.

Time is up on California’s 90 Day Foreclosure Freeze

The state of California had a great idea introduce Senate bill 1137, and solve the states foreclosure problem using the brute force of Governor Schwarzenegger and the state senates pen. What was the goal? the pitch was that they were going to give lenders time to put systems into place to modify mortgages, create programs council people in default, create community incentives to buy, AND delay the inevitable.

Most of us in the industry knew that this bill would have little to no effect on the actual problem. Like most government ideas it failed to address the single biggest factor. Distressed homeowners need their situation to change, in most cases a curtailment of income was the number one problem. The ARM loans that keep adjusting are also a key factor. Most of those loans are tied to the U.S Prime rate, currently the prime rate is 3.25 % so actually the prime is low. However the three or five year bump is what is causing those loans to move up. The big SB 1137 promise that never happened was the supposed increase in loan mods. With all of the people I talk to on a daily basis about the current Sacramento Real Estate market I still have not seen or heard of a real increase in lender communication and loan modification.

So here we are heading into 2009. This week the Notice of Default and Notice of Trustees sale filings are up way up. Using stats from Foreclosure Radar the number is around 44 % or 19, 444 houses in August, and 28, 189 houses in November. That is huge. For a Realtor out on the street we are already seeing new REO properties coming onto the market. I predict that moving into the new year we will see inventories increase significantly. No doubt that I will be helping buyers and investors find great deals on bank owned properties.

I am always concerned about my clients,  I have been fortunate to have the best clients on earth. They refer friends and family to me and always have something good to say. I appreciate all of the kind words but at the end of the day I’m just trying to do my best to help satisfy needs and solve problems. I know that all of these Notice of Default fillings will effect some of my clients and people that they know. There are options for people facing foreclosure. The key is to take a proactive approach and call a trusted Sacramento area Real Estate Professional.

Todays Top 5 Things Sacramento’s Homebuyers Need to Know

With everything that you have heard about the economy and housing nobody has stopped to tell you what has been quietly happening in Sacramento’s Real Estate market ( Hint: 100% sales increase over 2007 at this time) With this post I will touch on the five things that buyers need to know about buying a home today. I think it is a great time to buy especially over the holiday season and winter months when the competition is low. Competition ! ? The market is dieing out there right ? I will dispel a myth or two while I’m at it.

1. Get Pre-approved

This seems to be one thing that never changes a friend of mine always says ” Without the loan, There is no home ” moving forward to 2009 most industry insiders agree that loans are going to be tougher than ever to get especially Re-finances on existing mortgages. Find a good mortgage broker and schedule a meeting to talk about the current programs and your financial situation. Having a Pre-Approval letter will be key to writing a winning offer.

2. Look Close at REO Properties

The Sacramento real estate market is in bank owned homes. Today’s buyers need to look close at bank owned opportunities some of these properties are un-deniable bargains generating many offers. I recently heard a story about a single property getting 35-40 offers over one weekend. The best REO properties move quick. However some REO properties are in dire condition needing thousands of dollars in repair and renovation. A good REO agent can help you narrow the field of properties and focus on the best bets. It is likely that you will need to be Pre-Approved by the bank that owns the property so it is a good idea to have a file with all of your loan qualification information in one place so that you can streamline the process. All of the RESPA rules apply to bank owned homes so you can still use your own lender.

3. Highest and Best Offer

REO properties generate all kinds of buyers. Investors, bargain hunters, first time home buyers, and traditional buyers are all showing up looking for a deal. That’s great we all need the REO properties to be moved so that our economy can stabilize. The catch is that most REO properties get multiple offers, Banks generally do not counter these offers because they have multiple offers one of which is a solid offer. If you are serious about purchasing a REO property have your agent advise you on what they think the property will sell for. Then make your highest and best offer !

4. Short Sales

Short Sales offer the seller a chance to get out from under a bad situation, it is important that you don’t get into a bad situation while trying to buy one. A skilled buyers agent will help guide you through the sea of rough water that comes with a short sale. If you are patient their are opportunities to be found especially if you find a property that has REAL pre-approval.

5. Needs Vs. Wants

Making a needs vs. wants list. It is amazingly simple. Sit down with all of the decision makers on the home purchase and write down all of the factors that come into play in this home purchase. Consider commutes to work, schools, lifestyle, number of children, etc. If you are an investor look at your financial goals, return on investment and how long you intend to hold the property. This will make you home shopping much simpler.

Keeping these 5 things in mind will make your home search a pleasant experience. I have been helping a couple look for a home in Fair Oaks. They were a little resistant to some of my advise at first. Now that they are realy into the home search process they thank me for some of my straight forward advise. Most people are shocked to have a Realtor give them advise that may not close the sale.  I consider myself a Real Estate Adviser, I am here to help with what can be a difficult decision. If you have any questions about Sacramento area real estate feel free to call me at (916)332-1292.