Palm Spings Real Estate - Realtor Rick Sayers

Interest Rates to Remain Low!!

2011-12-23T06:49:00.000-08:00

By Drew FitzGerald

Mortgage rates are expected to remain very low at least through mid-2012, while housing activity improves slightly, according to Freddie Mac’s economic and housing outlook released Wednesday.

The outlook also projects fewer single-family home-loan originations but more multifamily lending in 2012. The rental market is likely to lead growth in the lending industry, though parts of the country will also benefit from increased activity in the single-family home market.

High unemployment and a glut of foreclosed properties have depressed the housing market in recent years, despite extremely low interest rates that have made borrowing more attractive.

“While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly,” said Frank Nothaft, Freddie Mac’s chief economist. “All told, next year will be another bumpy ride.”

Job growth must accelerate beyond the average monthly payroll gains of 130,000 seen this year through November for the unemployment to decrease significantly. Even then, the mortgage company predicted the unemployment rate will remain above 8% in 2012.

Freddie Mac predicts the U.S. economy will grow by about 2.5% next year.

Sales up Prices Down

2011-12-23T06:37:00.000-08:00

The Orange County Register
California house sales up, prices down
California home sales posted an increase both on a monthly and annual basis in November,
marking the fifth consecutive month of year-to-year sales increases, according to figures
released today from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Meanwhile,
the statewide median price of an existing, single-family detached home sold in California rose 1
percent compared with October, but declined 5.2 percent compared with a year earlier.
Making sense of the story
 Closed escrow sales of existing, single-family detached homes in California rose to a
seasonally adjusted 503,570 units in November, up 2.1 percent from a revised 493,140
in October, according to information collected by C.A.R. from more than 90 local
REALTOR® associations and MLSs statewide.
 November home sales also were up 2.3 percent from the revised 492,040 units sold
during the like period a year ago. The statewide sales figure represents what would be
the total number of homes sold during 2011 if sales maintained the November pace
throughout the year. It is adjusted to account for seasonal factors that typically influence
home sales.
 The November statewide median price of an existing, single-family detached home sold
in California was $280,960, up 1 percent from $278,060 in October but down 5.2 percent
from the $296,480 median price recorded for November 2010.
 The Unsold Inventory Index for existing, single-family detached homes was 5 months in
November, down from 5.3 months in October and down from a 6.2-month supply in
November 2010. The index indicates the number of months needed to deplete the
supply of homes on the market at the current sales rate.
Read the full story
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December 17th Foreclosure update

2011-12-17T08:21:00.000-08:00

RealtyTrac: November foreclosure activity hints at rising tide (CHARTS)
California, Arizona post annual increases amid U.S. seasonal dipBy Inman News, Thursday, December 15, 2011.

After rising in October, foreclosure activity fell slightly on a monthly basis in November, but some signs point to a coming increase in early 2012, according to a report from foreclosure data site RealtyTrac.
One in every 579 housing units, or 224,394 properties, received a foreclosure filing -- a default notice, scheduled auction, or bank repossession -- in November. That's a 3 percent drop from October and a 14 percent drop from November 2010 -- the smallest year-over-year decline in the past year.
"Despite a seasonal slowdown similar to what we've seen in each of the past four years, November's numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs (bank-owned homes) or short sales sometime early next year," said James Saccacio, co-founder of RealtyTrac, in a statement.
"Overall foreclosure activity is down 14 percent from a year ago, the smallest annual decrease over the past 12 months, and some bellwether states such as California, Arizona and Massachusetts actually posted year-over-year increases in foreclosure activity in November.
Source: RealtyTrac
The number of homes receiving default notices decreased 8 percent month to month and 9 percent year over year in November, to 71,730 properties. That figure is also a 9 percent decline from August, when default notices rose 33 percent from the month before.
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That surge in default notices that began in August meant scheduled foreclosure auctions were at a nine-month high in November, Saccacio said.
Scheduled auctions rose 13 percent month to month but fell 17 percent year over year in November to 96,540. On a monthly basis, auctions rose more than 35 percent in several states, RealtyTrac said: California (63 percent), Washington (56 percent), Ohio (53 percent), New Jersey (44 percent), and New York (38 percent).
REO activity hit a 44-month low in November with lenders repossessing 56,124 properties. That's a 17 percent drop from both October of this year and November 2010.
Nevada had the highest foreclosure rate in the nation for the 59th straight month in November despite "artificially low foreclosure activity," RealtyTrac said, due to a new Nevada state law designed to crack down on documentation irregularities by foreclosing lenders -- that law took effect in October. Foreclosure activity in the state rose 3 percent from October, but was down 43 percent compared to a year ago.
10 states with the highest foreclosure activity rates in November:
Area
Foreclosure rate (November 2011)
U.S.
1 in 579 housing units
Nevada
1 in 175
California
1 in 211
Arizona
1 in 256
Utah
1 in 290
Georgia
1 in 330
Michigan
1 in 330
Florida
1 in 358
Illinois
1 in 427
Ohio
1 in 500
South Carolina
1 in 517
Source: RealtyTrac
Foreclosure activity in California rose 11 percent year over year and 15 percent month to month in November. The increase was driven largely by a jump in scheduled foreclosure auctions, which posted a 10-month high last month. Foreclosure filings in the Golden State accounted for 28 percent of the nation's total -- more than any other state.
Arizona also saw an annual increase in foreclosure activity -- the state's first since October 2010. Filings rose nearly 4 percent year over year and 1.3 percent month to month.
Other states that saw annual increases in foreclosure activity included Vermont (100 percent), New Hampshire (45 percent), Maine (29 percent), Rhode Island (20 percent), Delaware (16 percent), Louisiana (nearly 12 percent), Massachusetts (11 percent), South Carolina (4 percent), and Wisconsin (4 percent).
California accounted for nine of the 10 metropolitan areas with a population of 200,000 or more with the highest foreclosure activity rates. Stockton, Calif., had the highest foreclosure rate in November with 1 in 120 units receiving a foreclosure filing. The only non-California metro among the top 10 was Las Vegas, which had held the No. 1 spot for 22 months before October.
All nine California cities posted double-digit monthly increases in scheduled foreclosure auctions in November, including a 65 percent jump in Stockton and a 100 percent jump in Fresno.
Metro area
Foreclosure rate (November 2011)
Stockton, Calif.
1 in 120 housing units
Riverside-San Bernardino, Calif.
1 in 125
Vallejo-Fairfield, Calif.
1 in 136
Bakersfield, Calif.
1 in 139
Modesto, Calif.
1 in 139
Las Vegas
1 in 150
Sacramento, Calif.
1 in 158
Fresno, Calif.
1 in 165
Merced, Calif.
1 in 182
Visalia-Porterville, Calif.
1 in 183
Source: RealtyTrac

Southern California Home Sales Rise

2011-12-16T08:49:00.000-08:00

SoCal home sales rise on declining prices
by KERRY CURRY
Southern California home sales, prices suffer in April
December SoCal home sales down 12.5% from year ago: DataQuick
Southern California home sales dip, but prices inch up
Portland home sales and prices slide as foreclosures drag market down
Miami home sales down 4.2% despite condo surge: DataQuick
Wednesday, December 14th, 2011, 12:04 pm
The number of homes sold in Southern California rose modestly last month from both October and a year earlier as investors and first-time buyers targeted homes priced below $400,000.
Prices, however, slipped in most areas, except in San Bernardino, Calif., where the median price rose 2.3% and nearby Riverside, where prices remained stable, according to San Diego real estate information firm DataQuick.
A total of 16,884 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in November, up 0.3% from October and up 4.2% from November 2010.
More often than not, sales have dropped between October and November and have fallen, on average, 8.4% between those two months since 1988, when DataQuick's statistics begin. Still, last month’s sales were 22.7% lower than the November average of 21,832 transactions since the record-keeping began.
November existing-home/condo sales rose 5.8% from a year earlier, while new home sales fell 15.2% to the lowest level on record for a November.
"Tis still the season to go bargain hunting — or at least that’s what the November home sales data suggest. The portion of homes sold to investors continued to hover near an all-time high,” said John Walsh, DataQuick president.
Distressed property sales accounted for 51.3% of the Southland resale market last month, down from 52.3% in October and down from 53.4% a year earlier.
Short sales, where the sale price fell short of what was owed on the property, made up just shy of 20% of Southland resales in November.
Lower conforming loan limits that took effect Oct. 1 continued to impact the housing market. Lawmakers recently restored the higher limits, which vary by county, for FHA loans but not for mortgages guaranteed by Fannie Mae and Freddie Mac.
In Los Angeles and Orange counties, where the conforming loan limit was lowered from $729,750 to $625,500, the number of homes sold with purchase loans in that range totaled 58 in November, down 44.2% from October and down 84.1% from a year earlier.
The chart below (click to expand) shows homes sales and median prices changes in the Southern California markets tracked by DataQuick.

Should I take my home off the Market During The Holidays?

2011-12-12T12:05:00.000-08:00

Should I Take My Home Off the Market During the Holidays?
When you look at your calendar you may find the months already overloaded with seasonal obligations -- shopping, entertaining, children's pageants, charity work, decorating the house, and so much more. If you are also trying to sell your home, you are under extra pressure to keep your home in "showtime" condition. And that could be the last thing you need before the holiday spirit is broken.
It is understandable why you would be tempted to take your home off the market during the holidays. And the list of justifications is long. If you are too busy, buyers may be also, and you may find your efforts unrewarded with not enough showings. And what if you do get an offer? You may be faced with the possibility of packing and moving during the busiest time of the year. Besides, you can give your house a rest, and it will have better momentum after the holidays. Better to just pack it in and start fresh in January, right?
But wait! Most top Realtors agree that taking your home off the market during the Christmas season is a mistake. The house surely isn't going to sell off the market! What is the advantage of that? So you're busy. Let your Realtor do the work. You can leave in the morning, go to work, go shopping, and let your Realtor take care of things.
The holidays are a wonderful selling period. Why? Because most people take off work sometime during the season. The husband and wife are both off and want to see houses. Most agents like the holidays because the buyers have more time, and they can look at homes together.
Before you take your home off the market, consider the following points:
Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are that much more serious. Agents believe the home market is no more affected at Christmas than during other "busy" periods. If that were so, the market would shut down throughout the year as families concentrate on spring weddings, June graduations, summer vacations, and autumn back-to-school activities.
Many buyers deliberately choose to shop for a home after the busy spring and summer rush. They know that it will be easier to look, and that negotiations will be less stressful. They may not have children, or they may have grown children, so moving to accommodate the school year isn't a consideration. Finding the right home at the right price, however, is.
Relocating families often don't have a choice when they can leave for their new destination. Although 68% of transferring families have children, many families have to transfer during the middle of the school year. These families are that much more motivated to get their families settled in before either the January semester begins, or to arrange for the move during spring break in March. If you sign a contract by New Year's Eve, the timing couldn't be more perfect.
At Christmas time, our culture focuses on family and the home. Preparing for the indoor activities of winter is one of the most enjoyable periods of family life. Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in the attractive environment you have created.
When is your home ever more beautiful and inviting? You have cleaned and decorated, and your home looks like a picture postcard. If the results are good enough for family and friends, they will surely be good enough to impress your buyers. Get the family team on board to do a five-minute blitz pick-up every morning to keep holiday messes to a minimum.
With many motivated buyers in the marketplace, you may find you have more showings than you would if you sold your home during a busier time of the year.
If you do get a contract, you can arrange the terms to suit your needs. If moving during the holidays isn't an option, you can put in the closing date of your choice. Most people can close 30 to 60 days after a contract is written, so there is plenty of time. Possession and closings are very negotiable. Written by Realty Times Staff
Wondering What Your Home Is Worth? -- Let me show you.
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Rick Sayers E-mail: rick@ricksayers.comWeb: http://www.ricksayers.com866-725-0589
Windermere Real Estate Coachella Valley760-574-6598Palm Springs, CA. 92262License # 01377021

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The Price of a 'No-Cost Loan'

2010-10-28T08:56:00.000-07:00

HOME buyers concerned about high closing costs in this tight economy might be tempted by a type of loan that requires no cash outlay in exchange for paying a higher interest rate, especially because rates are already at historically low levels.
But these “zero-cost” or “no-cost” financing deals, as they’re known, could end up costing a borrower dearly over time, some mortgage experts warn.
“I’ve always seen them as a marketing ploy,” said Charles S. Light, a branch manager of Odyssey Funding. “If you’re going to be in the loan more than five years, it usually does not make sense.”
Unlike some similar loans, which don’t require an out-of-pocket outlay but tack on the thousands of dollars in closing costs to the balance, zero- and no-cost loans typically add a half percentage point or so to the rate while not increasing the mortgage balance.
The third-party fees — for the appraisal, credit report, title insurance, recording, and, if you use one, mortgage broker — are paid by the lender. The fees, including how much the broker is making on the loan, are disclosed on the closing statement.
But if you bypass a broker and go straight to the lender there is less transparency, because the loan officer doesn’t have to disclose how much the lender is making off the loan.
The math on no-cost loans, which can be used for both purchases and refinancing, and which come in fixed and adjustable rates lasting 3 to 30 years, is simple.
Say you opt for a $300,000 no-cost, fixed-rate loan at 5 percent for 30 years, instead of coughing up $6,000 in closing costs and paying 4.5 percent interest. If that’s your choice, you will have monthly payments of $1,610.
By paying the closing costs up front for the 4.5 percent rate, you recover those costs at 66 months, according to Mr. Light. But you also have a monthly payment of $1,520 — $90 lower than the no-cost option. That adds up to a savings of $32,547 in interest over the life of the loan.
No- or zero-cost loans can seem appealing to residents of New York, who face a mortgage tax of 1.8 percent (around 0.8 percent if they live in the state but outside the city), as well as fees for a bank-hired lawyer.
“People are so tight on cash, it allows people to save out of pocket,” said Thomas Martin, the president of America’s Watchdog, a consumer advocacy group based in Washington.
But Mr. Martin added that buyers should plug in the numbers on an amortization calculator (one is available at www.federalreserve.gov) and compare them with those for a conventional loan. If you plan to refinance a no-cost loan within several years — an option that might make financial sense for some people — make sure you have no prepayment penalty, he added.
Zero-cost loans emerged in the early 1990s and blossomed during the mortgage boom, when they were sold by big banks and lenders alongside no-documentation loans and other subprime products, mainly to lower-income consumers who lacked cash.
TODAY, Mr. Martin said, tighter lending and disclosure requirements make the no-cost option “a totally different animal than five years ago,” with lenders now much stricter about verifying income levels.
Still, some big banks, including Bank of America, no longer make them available.
“We’re focused on offering products that offer complete transparency to the customer,” said Terry Francisco, a spokesman for Bank of America.
Loan-volume numbers are difficult to come by, though other banks, including Wells Fargo, still offer the loans. The Wells Fargo one, called Closing CostSaver, typically runs a half to five-eighths of a percentage point higher than conventional loans and comes in 10- to 30-year terms.

Palm Springs Calif.Real Estate update 4/1

2010-04-01T07:36:00.000-07:00

$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME
Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.
Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.
For more information, C.A.R. offers a Homebuyer Tax Credit Chart with a side-by-side summary of the federal and California laws. C.A.R. also offers a legal article entitled Homebuyer Tax Credit Update.

Palm Springs Calif.Real Estate update 3/8

2010-03-08T07:53:00.000-08:00

Nab a real estate deal - while you still can By Beth Braverman, staff reporterMarch 2, 2010: 10:30 AM ET
(Money Magazine) -- If you've been holding off on a real estate purchase, glimmers of a turnaround in the housing market may have you wondering if it's finally time to make your move.
While home prices remain low, they're no longer free-falling in most markets. Mortgages are historically cheap. And the sweet tax credit that was offered to new buyers last year has been extended to April 30 and expanded to include current homeowners too.

But for all the motivation to act quickly, buying right now is not a no-brainer. In some areas home prices may fall further. If you own a house now, it may take longer than you expect to sell it, and you may walk away with less cash than you thought.
"It's a good time to buy, but it's still a really difficult market," says Patrick Newport of IHS Global Insight. As the clock ticks toward the tax-credit deadline, answer these questions to decide whether it's time to get off the sidelines.
Can you really nab that tax credit?
Current homeowners who sign a contract to buy a home on or before April 30 get a dollar-for-dollar reduction on their taxes of 10% of the purchase price of the home, up to a maximum of $6,500 (first-time buyers can get up to $8,000).
But according to the National Association of Realtors, buyers spend about 12 weeks home shopping before making an offer, so if you haven't already started looking, you may be pressed to meet the deadline.
Plus, to qualify for the full credit, your household income must be under $225,000 if you're married and less than $125,000 if you're single; repeat buyers must have lived in the home they are selling for five of the past eight years. The good news: Once you've signed the contract, you have until June 30 to close the deal.
How much could you lose by waiting?
Besides the loss of the tax credit, the biggest game-changer facing buyers is a potential jump in mortgage rates. If the Fed moves ahead with its plan to stop buying mortgage-backed securities at the end of March, the rate on a 30-year fixed mortgage is expected to increase nearly a percentage point from today's 5.18% to 6.1% by the end of 2010, according to the Mortgage Bankers Association. On a $300,000 fixed-rate mortgage, that's an extra $174 per month.
But if home values are falling in your area, you don't have much to lose by waiting. If the house you want costs $375,000 today and you put down 20%, you'd pay $1,644 a month for a fixed-rate mortgage at 5.18%. Buy that same home for 5% less later on with rates at 6% and you'd only pay an extra $65 a month. If prices plunge 10% or more this year (as they are expected to in 12% of markets, according to Fiserv), you'll come out even or ahead.
To get a handle on the direction of your market, check trulia.com to see whether inventory levels are increasing, and visit realtytrac.com to find out whether foreclosure filings are still rising. A glut of properties and bank-owned homes means a recovery may not be in sight.
How quickly can you sell the home you now own?
Even in markets that are recovering, sellers must price aggressively to make a fast deal.
"Everybody thinks their house is worth more than it is," says Dallas realtor Bruce Lynn. Before you sign a contract for a new place, ask a few agents to give you a realistic figure that will generate a quick sale. Can't bear to part with your home at that price? Waiting may be your only option.
Also keep in mind that, with the credit crunch not far in the past, lenders may not approve your purchase until you've sold your home. A delay in sale could also stick you with two mortgages, far outstripping any savings from the tax credit.
See if the sellers will let you put a contingency in the contract that negates the sale if you don't find a buyer -- it's a long shot but worth a try. If they won't, propose adding a kick-out clause that allows the sellers to keep their home on the market, but lets you either pull out or quickly move ahead with the deal if they get another offer.
While extra contract negotiations may be a hassle, the past few years have proved that a purchase decision shouldn't be taken lightly. "This may be the best time in history to buy a home," says Denver realtor Jeff Fogler, "but only if you can really afford it." Are you underwater on your mortgage? Money Magazine can help. Send your name, age, hometown and photo to donna_rosato@moneymail.com and you could be profiled in an upcoming story.

Palm Springs Calif.Real Estate update 1/11

2010-02-11T06:37:00.000-08:00

January 28, 2010

Fannie Mae Announces 3.5 Percent Seller Assistance on HomePath® Properties

Incentive Part of Ongoing Effort to Stabilize Neighborhoods

WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010.

"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home."

Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

Fannie Mae Resource Center Telephone 1-800-7FANNIE
(1-800-732-6643)

California Building Industry Association - It’s Official: California Housing Production Reached New Low in 2009

2010-02-04T09:08:00.001-08:00

California Building Industry Association - It’s Official: California Housing Production Reached New Low in 2009

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Palm Springs Calif.Real Estate update 1/8

2010-01-08T05:58:00.000-08:00

MSNBC
Housing may be headed for double dip
A recent real estate report indicates that consumers may be taking their time house hunting this winter, which
some economists believe could lead to a “double dip” in home prices. A recent report from the NATIONAL
ASSOCIATION OF REALTORS® (NAR) showed that its pending home sales index declined 16 percent in
November to a reading of 96, the first decline after nine consecutive months of gains.
KEEP THIS IN MIND
• NAR’s Pending Home Sales Index (PHSI) is a barometer of future sales. Typically, there is a one- to
two-month lag between the signing of a sales contract and the close of escrow. Although government
incentives, low interest rates, and affordable home prices have lured many buyers, especially firsttimers,
to the market, historically sales decline during the winter months and begin to rise in the
spring.
• Because of the government’s efforts to stimulate the housing market, some economists believe that
housing prices will decline once the incentives come to an end. However, the CALIFORNIA
ASSOCIATION OF REALTORS®’ (C.A.R.) closely watched "2010 California Housing Market
Forecast,” projected that the median home price in California will rise 3.3 percent to $280,000 in 2010
compared with a projected median of $271,000 in 2009.
• According to C.A.R.’s Vice President and Chief Economist Leslie Appleton-Young, unlike the rest of
the nation, home sales in California already bottomed out more than two years ago, and the median
home price reached its trough in February 2009.
• Although home buyers should not focus solely on future home price appreciation, according to data
collected by C.A.R. over the last 40 years, homeowners who purchase a median-priced house, live in
their home for at least five years, and sell it at the current median price, have averaged an annual rate
of return of more than 11 percent.
To read the full story, please click here:
http://www.msnbc.msn.com/id/34704789/ns/business-real_estate/

Palm Springs Calif. Merry Christmas 12/25 52 degrees

2009-12-25T08:20:00.000-08:00

One of the most commonly advised and cost free steps to improved home security is to keep your home occupied, or at least looking occupied. If you’re not familiar with some of the unintended invitations to intrusion, they include notes on the door advising of the occupants absence; built up snow on walks and driveways in the winter months; un-mowed lawns in the summer months; accumulation of mail, newspapers or circulars; total interior darkness before a normal bedtime; and an open garage with no vehicles present.
Valuable counter-measures include posted notices that your home is protected by a security system or notices that your homes’ contents have been engraved and registered to make selling any stolen items difficult. Photoelectric outdoor lights and automatic timers that activate indoor lights, radios, and televisions, preferably at random intervals, are also major deterrents.
“House sitters,” or having a neighbor’s car in your driveway also helps. To further discourage intruders, keep doors and windows locked, especially at basement and first-floor levels, or where the home is accessible from a fire escape, tree, porch or other structure. Inside, doors that lead to the basement or garage should be included in the keep-locked category.
Ladders should not be stored outside, on an open porch or hung under the eaves of a garage. Nor should vans or other tall vehicles be parked where they might serve as improvised ladders.
Of course, you’ll also want to make sure you have good quality security hardware and locks on all doors. Even if you opt to install a security alarm system, these simple deterrents should be routine
Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue.

Palm Springs Calif.Real Estate update 12/18

2009-12-18T05:38:00.000-08:00

Obama's standardized short-sale plan could help troubled homeowners
By Kenneth R. Harney
December 13, 2009
Reporting from Washington - If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's standardized short-sale plan that's scheduled to roll out in the next several months.The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has traditionally been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, timelines and financial incentives.A short sale involves a lender or investor agreeing to collect less than the balance owed on a mortgage debt out of the proceeds of a negotiated sale of the property. Often a short sale is the last alternative to foreclosure available to distressed homeowners and banks. Say you've lost your job and fallen behind on mortgage payments. With little or no income, you can't qualify for a modification program.In this situation -- grim as it is -- your best move may be to see whether your lender will accept a short sale. Though the idea sounds straightforward, in practice it is not. First, the bank needs to be convinced that a short sale would yield it more money at the bottom line than a foreclosure would.This usually means you need to bring in a real estate agent who knows the ropes and can pull together the key information needed by the bank: recent comparables on closed sales, local market trends and the likely selling price of your house.You'll also need a buyer for the house -- one who'll pay a price acceptable to the bank and has financing to close the deal. If you happen to have a second mortgage or home equity credit line on the property, you'll also need to negotiate how much that lender will receive from the sale proceeds.That can be tricky. In depressed real estate markets, the second-lien lender may be holding a note that's worthless in a foreclosure because plummeting property values have wiped out the collateral. Yet that same bank is in a pivotal position: It has the legal power to block the short sale by refusing to sign on to the deal.Equally troublesome in short sales is the fact that banks, mortgage servicers and bond investors often have conflicting requirements for documentation and financial yields that can complicate and drag out the haggling for months.Enter the Obama administration's new streamlining plan. Besides requiring lenders and servicers to use uniform documentation, pre-approved short-sale terms and accelerated turnaround times, the plan provides financial incentives for key players:* Homeowners who successfully complete a short sale under the program receive $1,500 to defray relocation costs.* Mortgage servicers can receive $1,000 per case.* Investors get $1,000.* Second-lien holders receive up to $3,000 from the sale proceeds.Even real estate agents get something: The rules prohibit banks from forcing them to cut their commissions from the listing agreement as part of the final deal.Sounds like a formula for encouraging a lot more short sales, right? The jury will be out on that for months, and most major lenders are still studying the fine print of the Obama program. But early reactions from big banks appear to be positive.Dave Sunlin, a senior vice president for Bank of America Corp., said: "We're very pleased. We welcome any effort to reach standardization for all parties" involved in short sales.Faith Schwartz, executive director of Hope Now -- a Washington-based group representing the country's largest banks, mortgage servicers, bond investors and consumer counseling organizations -- said the plan should bring "uniformity and standards" to a process usually characterized by "mayhem" among the negotiating parties.Scott Brinkley, a senior vice president for First American Corp., a firm that provides market data for banks, said, "You're going to see a lot of cooperation" by lenders and investors.But there could be a major pothole: The Obama plan tilts to consumers by requiring second-lien holders to drop all financial claims against short-selling borrowers beyond the $3,000 they take out of the deal.Travis Hamel Olsen, chief operating officer of Loan Resolution Corp., a Scottsdale, Ariz., consulting firm, says the $3,000 payment won't be enough for many second-mortgage lenders. Today they frequently obtain additional short-sale compensation from sellers as the price of their participation -- in cash or through promissory notes -- far beyond $3,000."I'm concerned that that could limit participation" by second-lien holders, Olsen said.Bottom line for homeowners who might benefit: Don't have wild expectations, but definitely ask your servicer whether it plans to participate and whether the forthcoming standardized plan for short sales might work for you.kenharney@earthlink.netDistributed by the Washington Post Writers Group.
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Palm Springs Calif.Real Estate update 12/17

2009-12-17T08:19:00.000-08:00

California New-Home Market Breaks into Positive Territory,

CBIA Announces
December 10, 2009 SACRAMENTO – The pace of home sales at California new-home communities rose above year-ago levels for the first time since December of 2006, the California Building Industry Association reported today. The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 25 percent above October 2008, a strong improvement from the lingering year-over-year decline last month and represents the first notable increase since the start of the housing downturn. During October, 2,294 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 1,838 in October 2008. Sales of single-family homes were up by 4 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – were up 36 percent and sales of condominiums were 94 percent higher than a year ago thanks to strong sales at projects in the Los Angeles and San Francisco areas. Compared with the same period last year, the median base price of homes sold was still down, however, dropping 4 percent. Non-seasonally adjusted total new-home sales were 1 percent below levels seen last month. This is also an improvement from the 29 percent decrease seen last year for the same month-to-month period. Jonathan Dienhart, Director of Published Research for HWMI, noted the encouraging figures should be kept in perspective. “While this month’s figures are encouraging, we must keep in mind that we’re comparing the figures to October of 2008, which was the second lowest month of nominal sales we’ve seen during the downturn,” Dienhart said. “Examining the data in a rolling twelve months tells a more realistic increase, with a 1.5 percent rise from last month.” Dienhart also noted that the numbers could be distorted due to buyers rushing into the market to take advantage of a federal tax credit that was due to expire shortly after this time period. “The next two months should still show some year-over-year gains due to how weak November and December of 2008 were, but are not likely to be as large as the 25 percent rise this month,” Dienhart said. “With all the significant economic obstacles facing California home buyers, it won’t be until next year when we see if or when a true recovery may materialize.” Liz Snow, CBIA’s President and CEO, agreed and added that lawmakers should continue to look at ways to ensure a housing recovery, and a broader economic recovery, in the coming year. “It’s great to finally see a year-over-year increase after seeing sales declines for so long, but the fact that we’re comparing the latest numbers to one of the lowest sales months of the downturn still doesn’t bode well for a housing recovery in the near future,” said Snow. Snow noted that increased home sales will lead to more job-generating new-home construction and urged lawmakers to look at the benefits generated by the housing industry when taking up future legislation. “Studies show that each new home built generates anywhere from two to three jobs and produces roughly $16,000 and $3,000 in tax revenues for state and local government, respectively,” said Snow. “We hope our state lawmakers will take into account the profound economic and fiscal benefits generated by the housing industry and take action to bolster the housing sector in hopes of encouraging a broader economic recovery in 2010.”
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The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association's Web site, www.cbia.org. Hanley Wood Market Intelligence is the housing industry’s leading provider of rich data and consulting services on residential real estate development and new-home construction and is a division of Hanley Wood, LLC, the premier media company serving housing and construction. More information is available on the company’s Web site, www.hanleywood.com/hwmi or by calling 1-800-639-3777. Hanley Wood Market Intelligence (HWMI) collects data from new for-sale production subdivisions of 10 units or more on a monthly basis. HWMI Net Sales represent sales contracts signed during the period indicated minus any reported cancellations. Median and Average Prices are based upon the minimum asking price of the plans sold during the period and do not include the cost of any lot/view premiums or upgrades.

Palm Springs Calif.Real Estate update 12/17

2009-12-16T12:18:00.000-08:00

U.S. Treasury’s Foreclosure Avoidance Program

The U.S. Treasury has released their long awaited details of the Home Affordable Foreclosure Alternatives (HAFA) program, which provides instructions for lenders and servicers participating in the Making Home Affordable, Home Affordable Modification Program (HAMP). The purpose of HAFA is to create an alternative to foreclosures for homeowners unable to successfully modify their troubled mortgage under HAMP. These alternatives are either a short sale or a deed-in-lieu of foreclosure.
In almost all cases, when a it is clear a homeowner is unable to keep their home a short sale or deed-in-lieu is preferable to a foreclosure as it moves the troubled property expeditiously through the market and does not allow it to sit and become a blight within the community.
The HAFA program simplifies and streamlines the use of short sale and DIL options by incorporating the following unique features:• Compliments HAMP by providing viable alternatives for borrowers who are HAMP eligible.• Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis.• Allows the borrower to receive pre-approved short sale terms prior to the property listing.• Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement.• Requires that borrowers be fully released from future liability for the debt.• Provides financial incentives to borrowers, servicers, and investors. This includes $1,500 for relocation for the borrower, $1,000 for the servicer to cover costs and a one-for-three matching basis to help investors payoff subordinate liens (up to $1,000)
The program begins on April 5, 2010, though servicers may choose to implement it earlier. This Directive was only for non-Fannie Mae or Freddie Mac loans up to $729,750.
The Directive also included four standard forms intended to universalize and streamline the short sale and deed-in-lieu process.
Supplemental Directive 09-09
Short Sale Agreement
Request for Approval of Short Sale
Alternative Request for Approval of Short Sale
DIL Agreement NAR Home Affordable Foreclosure Alternative FAQs

Palm Springs Calif.Real Estate update 12/3

2009-12-03T05:39:00.000-08:00

WASHINGTON, D.C. (November 19, 2009) — The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009, up 40 basis points from the second quarter of 2009, and up 265 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 108 basis points from 8.86 percent in the second quarter of 2009 to 9.94 percent this quarter.
Top Line Results
The delinquency rate breaks the record set last quarter. The records are based on MBA data dating back to 1972.
The delinquency rate includes loans that are at least one payment past due but does not include loans somewhere in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the third quarter was 4.47 percent, an increase of 17 basis points from the second quarter of 2009 and 150 basis points from one year ago. The combined percentage of loans in foreclosure or at least one payment past due was 14.41 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey.
The percentage of loans on which foreclosure actions were started during the third quarter was 1.42 percent, up six basis points from last quarter and up 35 basis points from one year ago.
The percentages of loans 90 days or more past due, loans in foreclosure, and foreclosures started all set new record highs. The percentage of loans 30 days past due is still below the record set in the second quarter of 1985.
Increases Driven by Prime and FHA Loans
“Despite the recession ending in mid-summer, the decline in mortgage performance continues. Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP. Over the last year, we have seen the ranks of the unemployed increase by about 5.5 million people, increasing the number of seriously delinquent loans by almost 2 million loans and increasing the rate of new foreclosures from 1.07 percent to 1.42 percent,” said Jay Brinkmann, MBA’s Chief Economist.“Prime fixed-rate loans continue to represent the largest share of foreclosures started and the biggest driver of the increase in foreclosures. 33 percent of foreclosures started in the third quarter were on prime fixed-rate and loans and those loans were 44 percent of the quarterly increase in foreclosures. The foreclosure numbers for prime fixed-rate loans will get worse because those loans represented 54 percent of the quarterly increase in loans 90 days or more past due but not yet in foreclosure.“The performance of prime adjustable rate loans, which include pay-option ARMs in the MBA survey, continue to deteriorate with the foreclosure rate on those loans for the first time exceeding the rate for subprime fixed-rate loans. In contrast, both subprime fixed-rate and subprime adjustable rate loans saw decreases in foreclosures.“The foreclosure rate on FHA loans also increased, despite having a large increase in the number of FHA-insured loans outstanding. The number of FHA loans outstanding has increased by about 1.1 million over the last year. This increase in the denominator depresses the delinquency and foreclosure percentages. If we assume these newly-originated loans are not the ones defaulting and remove the big denominator increase from the calculation results, the foreclosure rate would be1.76 percent rather than 1.31 percent reported.“Once again the states of Florida, California, Arizona and Nevada have a disproportionate share of the mortgage problems. They had 43 percent of all foreclosures started in the third quarter, down only slightly from 44 percent both last quarter and the third quarter last year. They had 37 percent of the nation’s prime fixed-rate loan foreclosure starts and 67 percent of the prime ARM foreclosure starts. As of the end of September, 25 percent of the mortgages in Florida were at least one payment past due or in foreclosure.“The outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve. First, it is unlikely the employment picture will get better until sometime next year and even then jobs will increase at a very slow pace. Perhaps more importantly, there is no reason to expect that when the economy begins to add more jobs, those jobs will be in areas with the biggest excess housing inventory and the highest delinquency rates. Second, the number of loans 90 days or more past due or in foreclosure is now a little over 4 million as compared with 3.9 million new and previously occupied homes currently for sale, although there is likely some overlap between the two numbers. The ultimate resolution of these seriously delinquent loans will put added pressure on the hardest hit sections of the country.”

Palm Springs Calif.Real Estate update 11/27

2009-11-27T05:12:00.000-08:00

Quick Facts:· Existing, single-family home sales increased 1 percent in October to a seasonally adjusted rate of 562,400 units on an annualized basis.· The statewide median price of an existing single-family home increased 0.3 percent in October to$297,500, compared with September 2009.· C.A.R.’s Unsold Inventory Index fell to 4 months in October, compared with 6.1 months in October 2008.LOS ANGELES (Nov. 25) – Home sales increased 1 percent in October in California compared with the same period a year ago, while the median price of an existing home declined 3.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.“Home sales historically trail off during the fall and winter months as we move to the off-peak season for the housing market,” said C.A.R. President Steve Goddard. “However, with affordable home prices, mortgage rates hovering around 5 percent, and the extension and expansion of the federal tax credit, we expect first-time and move-up home buyers to drive home sales through the end of this year and into early 2010.”Closed escrow sales of existing, single-family detached homes in California totaled 562,400 in October at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 1 percent from the revised 557,050 sales pace recorded in October 2008. Sales in October 2009 increased 5.9 percent compared with the previous month.The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the October pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.The median price of an existing, single-family detached home in California during October 2009 was $297,500, a 3.2 percent decrease from the revised $307,210 median for October 2008, C.A.R. reported. The October 2009 median price rose 0.3 percent compared with September’s $296,610 median price.“California’s median price rose for the eighth consecutive month in October and sales continued to show strength, signs that California has hit and passed the bottom of this real estate cycle,” said C.A.R. Vice President and Chief Economist Leslie-Appleton-Young. “The number of distressed sales as a share of total sales has shown considerable improvement since the beginning of the year, as a result of loan modifications and other efforts to prevent troubled mortgages from going into foreclosure. This has led to a decline in inventory levels since the start of the year that is more consistent with the price gains we have seen in recent months.

Palm Springs Calif.Real Estate update 11/6

2009-11-06T05:40:00.000-08:00

News Flash
Homeowners win big with extension and expansion of federal tax credit

The U.S. House of Representatives today voted 403 to 12 to extend and expand the home buyer tax credit. The bill passed the U.S. Senate late yesterday and now will go to President Obama for his signature, where it is expected to be signed this week.

The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

For weeks, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R and its members have urged Congress and the U.S. Senate to extend and expand this crucial piece of legislation.

Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers. According to C.A.R. research, nearly 40 percent of first-time home buyers surveyed said they would not have purchased a home without the federal tax credit, and approximately 70 percent said the tax credit was "the most important" or a "very important" factor in their decision to buy a home.

Palm Springs Calif.Real Estate update 11/4

2009-11-04T06:24:00.000-08:00

BofA Implements Equator (REOTrans) Platform, as Short Sales Gain Ground

10/22/2009 By: Carrie Bay, reporter for DS News

California-based Equator (formerly known as REOTrans) says it has launched the industry's first-ever short sale module for a large national lender.
Although Equator declined to name the lender, the San Francisco Chronicle has reported that Bank of America is the company in question. A representative from BofA recently told the paper that they were using the Equator platform to manage the short sale process. "This is the first time that short sales have been handled through an electronic platform," said Equator CEO Chris Saitta. "With our new system, everyone works together in real time, dramatically improving communication and approval timelines for our client, its borrowers, vendors, and real estate agents."

Short sales, in which a lender and borrower reach an agreement to dispose of a property threatened by foreclosure at a price that is "short" of the amount owed on the mortgage, have become more popular among lenders lately as a viable method for dealing with distressed properties. According to Equator, the number of successful short sales has increased spectacularly across the country in the wake of the foreclosure crisis.

Kevin Kieffer, a Realtor with Keller Williams Realty in Danville, California, told the Chronicle, "A year ago I wouldn't touch a short sale. It would be random prices banks wouldn't agree to, you would be tied up six months hoping to get a property sold. But now we're seeing banks up front negotiating prices and giving us criteria. They're getting creative to make things move."

Equator says the keys to a successful short sale are accessibility, responsiveness, communication, and fulfillment. By adopting its short sale platform, the company says large lenders, such as the unnamed Bank of America, can ensure troubled borrowers have 24/7 access to a portal through which they can provide the necessary information to process a short sale and receive real-time status updates electronically.
"Short sales can be a daunting, complicated, frustrating task for everyone involved," Saitta said. "This fresh approach using our sophisticated platform makes it fast and efficient for all parties involved."

Equator's short sale module also automates decisioning for the lender, handles approvals for faster turnaround, provides quick fulfillment, and assures full compliance with government programs, Saitta said.

http://www.mortgageorb.com/e107_plugins/content/content.php?content.4561 http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/10/20/BUOG1A5M2P.DTL
http://www.bayareainvestmentrealestate.com/2009/10/reotrans-now-handling-short-sales.html

Real Estate update 10/26

2009-10-26T07:51:00.000-07:00

The Now Famous Short Sale-The Real Truth: As reprinted from the San Bernardino Press-Enterprise.

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All over the Inland Empire, "short sales" have turned into no-sales.
Delinquent homeowners sinking under the weight of mortgages they can no longer afford and negative home equity are trying to sell properties through the "short sale" process, where the homeowners attempt to sell the house at its current market price.
But the sale can't go through without the lender's approval.
The complex web of factors behind a bank's willingness to absorb that mortgage loss is befuddling even the most seasoned real estate agents - and their clients, too.
The challenge: Short sales are unpredictable.
Real estate agents are scrambling to send in detailed documents on deadline to bank "negotiators" to prove a seller's income hardship.
If the slightest bit of information is missing, the buyers and sellers are out of luck.
"Sometimes they say, `You have 24 hours to get this to me,' and if you don't, (the offer) goes to the bottom of the pile," said Diane Hull, a real estate agent for Century 21 Lois Lauer Realty in Redlands. "They have hundreds to keep up with. If the banks have that much they've piled on a negotiator, then they need to step things up and hire more people."
Not every short sale goes bust. A smattering

of bids are being approved, throwing real estate agents a bone and keeping a few sellers from sliding into foreclosure.
But agents say since the beginning of 2009, the majority of their short sale prospects are going belly up or being put on hold indefinitely.
In the worst cases, buyers and sellers wait six to nine months for a response, only to be turned down.
Some real estate agents blame the banking industry's negotiators for the excruciating short sale approval process.
The typical "package" agents send to the bank - usually between 50 and 80 pages - is made up of documents showing why a short sale is in the bank's best interest, and why the sellers can't pay their mortgage.
The real estate agent's next step: Call the negotiator. Then call again. And again.
In some instances, progress is made, but, according to Sandra Blancas, a distressed asset production manager at Gomez's office, even a small mistake in the package can get the offer set aside.
After she submits a package, it usually takes 60-90 days for a negotiator to call her back.
"And even then, they have the choice to close the file and send it to a new negotiator," Blancas said. "That can delay us another 30 to 60 days. And also within that time, the bank might request new documents, so we have to keep our fingers crossed the buyer will stick with us."
Hull agreed, but pointed out that negotiators are going through their own battles.
"A lot of them have work loads of 500 files or more," she said. "They get frustrated because they're overwhelmed."
Redlands residents Jared and Amanda Himle might be closer than ever to having their offer approved on a short sale in Mentone, a two-story home built in 2005.
"We're hoping for the best," Jared said. "We kind of got over the excitement, because with this house, we've gotten close two other times."
Their offer was submitted in February after the couple had been house shopping for almost three years.
"It goes through this crazy circle of everyone (at the bank) having to look at it, and then it goes to the bottom of the pile on everyone's desk," Himle said, referring to the process he went through.
If he doesn't get the home, "I start looking again," he said. "And keep looking and looking."
The largest banks are walking a tight rope to satisfy investors and federal regulators after receiving billions in taxpayer bailout money to shore up mortgage-related losses.
This could be putting banks in limbo when it comes to foreclosing on a home versus approving it for short sale, according to local real estate and mortgage professionals.
Nick Manfredi thinks "it's a lack of motivation" on the part of banks. He recently closed his company, TheShortSaleProcessor.com, after a year of helping troubled homeowners dodge foreclosure.
Even though he made some money, "it was a waste of time," said Manfredi, who is also founder of the Corona-based Inland Empire Investor's Forum.
"We'd have people offering 105 percent of the market value of the home, and the banks said, `We'll get back to you'," he said. "It'd be two months later, and still nothing. It's them deciding not to decide."
Let's say you're an underwater homeowner. You are three months late on your exotic $500,000 mortgage, and similar neighborhood homes are now going for $350,000.
You've submitted short sale documents, but the bank can foreclose on your home any time it wants to.
Another three months go by. While your real estate agent is still haggling with the bank negotiator, the bank's loan servicing department representatives are hounding you to pay your mortgage. So why doesn't the bank just foreclose?
Manfredi admits his opinions of what's going on may sound like conspiracy theories.
"Is there collusion between lenders? Or is there government interference?," he says. "There's no way to tell. It's pure speculation, but I think it could be a combination."
Michael Natzic thinks theories about collusion between banks and government regulatory pressure are interesting, but he doesn't buy it.
"We've got an ever-evolving market, a lot of moving parts," said Natzic, a banking specialist and senior vice president at Stone & Youngberg LLC's office in Big Bear Lake.
He said wouldn't be surprised if some banks are waiting for the real estate market to get better.
But Natzic says there's simply so much uncertainty about the economy, banks are probably afraid to make any moves regarding assets on their balance sheets.
Bank regulators probably aren't directly interfering with distressed assets, he says, but regulators still have a job to do, which is to scrutinize capital levels and troubled assets.
Chris Sorensen thinks the stalling is due to a combination of factors.
"It makes perfect sense if you think about it," said Sorensen, a former mortgage banker and founder of the Homeownership Education Learning Program, a local nonprofit. "Why should a bank sell an asset and realize the actual loss, and then become undercapitalized, forcing them to raise capital in an unattractive market?"
When banks and investors analyze a distressed asset like a short sale, they look at the underlying mortgage's long-term value, which is the originally anticipated return on investment over 30 years.
For many banks, moving assets off their books as soon as possible would be a knee-jerk reaction, versus waiting out the recession to salvage the best possible return on investment.
However, banks that received billions of dollars in federal bailout money now have some wiggle room, Sorensen said. With that financial cushion, difficult asset decisions are taking more time.
Fear of shareholder lawsuits and volatile stock prices could be leaving lenders worried about selling off too many distressed assets at too low a price, according to both Sorensen and Manfredi.
There's another scenario as well. During the housing boom, low-quality mortgages received "AAA" approval ratings from rating agencies, which gave the green light for conservative investors to buy them in the thousands.
Even though investors were misguided, many of them still want their return on investment - which means those short sales aren't getting approved.
Whatever the banks' reasons, they are "in a tight spot, a catch-22," Manfredi said. "They can't make everybody happy."
Ben Windust says he understands the frustrations of buyers, sellers and agents involved in the short sale process.
But the area operations manager for Wells Fargo Home Mortgage in Des Moines, Iowa - the mortgage division of Wells Fargo Bank - points to the behind-the-scenes complexity involved.
"Oftentimes there is an investor on the first mortgage, and oftentimes a second lien holder," Windust said. "And there's a mortgage insurance party that's interested too. The multiple parties add a lot of complexity. All parties have to agree to the terms."
The majority of short sales Windust's division deals with are homes with mortgages bought by investors, whether privately or through Wall Street.
"There does have to be financial hardship on the seller's part ... and those can get a little tricky," he said. "Your equity position doesn't necessarily prove a hardship.
Since January, Well Fargo has re-assigned 5,000 to the already 8,000 employees dealing with short sales, foreclosures and loan modifications, according to a spokesman.
But what about those arguments as to why banks are sitting on short sales for so long? Bank collusion, government regulatory pressure, stockholder angst, or a holdout until real estate values rise significantly - is there any truth to these theories?
"I don't believe, from my perspective, that ... holds true for us here," Windust said, while noting he can't speak for other banks. Overall, he said, "we want to make sure what the fair market values of properties are."
The short sale game isn't new, but some real estate agents say their industry wasn't prepared for it - and neither are consumers.
Dina Romero, like other agents, is setting herself apart from the pack by getting short-sale certified.
After putting herself through two in-depth short sale seminars, the agent with Prudential California Realty in Rancho Cucamonga feels more equipped to get transactions approved, although she can't promise anything.
"A lot of Realtors can barely do a regular transaction, and they're fine with it as long as they get paid," Romero said. "But when you get a short sale, it's totally different."
Experienced agents rushed into the recent housing bust with an early 1990s short-sale mindset, but many of them don't realize it's a completely different ballgame nowadays, Romero said.
"Some of the old-timers say they remember how to do short sales," she said. But today's complex short sale market is throwing them curve balls.
Gomez supports the idea of getting short sale certified, but many times it "has no bearing" on whether a short sale gets approved, he says.
"Most banks ask for the same stuff, but most (also) have those little guidelines or niches that are different," he said. "There's no single right way, and no wrong way, to do a short sale. They're unpredictable."
Quick Facts:- 4,819: Number of properties actively being marketed as short sales- 42%: Amount of the market represented- 936: Sales of "short-sale" homes in September- 19%: Amount of total sales in September
SOURCE: Pomona-based MRMLS Inc., which covers the populated western portion of both Riverside and San Bernardino counties, excluding the high and low deserts, the resort mountain communities and Hemet.
What's a "short sale"?A short sale is a house where the homeowner owes more on the mortgage than the property is worth on the market.
For instance, the home is worth $350,000 but the mortgage is $500,000. The seller puts the property up for sale, receiving buyers' offers that are around the $350,000 mark. The offers - along with evidence that the seller can no longer make payments because of income hardship - are submitted to the bank and mortgage investors for approval.
Whether the property is sold as a short sale or it's foreclosed on, the bank and its mortgage investors will absorb a mortgage loss. But theoretically, they will approve the short sale if it's the least costly route.

Latest California Real Estate statistcs as of 10/9

2009-10-08T07:27:00.000-07:00

Click on the following link for the latest up to date for the California real estate market.
http://www.car.org/media/pdf/econpdf/10-07-09Forecastexpo-FINAL.pdf

Palm Springs Calif.Real Estate update 10/8

2009-10-08T07:22:00.000-07:00

C.A.R.’s 2010 Housing Market Forecast releasedThe median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to C.A.R.’s "2010 California Housing Market Forecast," presented today at CALIFORNIA REALTOR® EXPO 2009 in San Jose. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.
“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said C.A.R. President James Liptak. “This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.” “After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”
“With distressed properties accounting for nearly one-third of the sales in 2010, inventory will be relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season,” said C.A.R. and Vice President Leslie Appleton-Young. “We expect the median price to decrease slightly through the remainder of 2009 and into next year, then rise before leveling off next summer. For the year as a whole, home prices are forecast to reach $280,000. The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government.”

Palm Springs Real Estate update 10/1

2009-10-01T08:10:00.000-07:00

Broad Improvement in Home Price According to
the S&P/Case-Shiller Home Price Indices
New York, September 29, 2009 – Data through July 2009, released today by Standard & Poor’s for its
S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show that, although
still negative, the annual rate of decline of the 10-City and 20-City Composites improved compared to
last month’s reading. This marks approximately six months of improved readings in these statistics,
beginning in early 2009.
The 10-City and 20-City Composites declined 12.8% and 13.3%, respectively, in July compared to the
same month last year. All 20 metro areas also showed an improvement in the annual rates of decline,
with July’s readings compared to June.
“The rate of annual decline in home price values continues to decelerate and we now seem to be
witnessing some sustained monthly increases across many of the markets” says David M. Blitzer,
Chairman of the Index Committee at Standard & Poor’s. “The two composites and all metro areas are
showing an improvement in the annual rates of return, as seen through a moderation in their annual
1 Case-Shiller® and Case-Shiller Indexes® are registered trademarks of Fiserv, Inc.
declines. Looking at the monthly data, the 10-City and 20-City Composites and 18 of the 20 metros areas
increased in July. In addition, both Composites and 13 of the MSA have had at least three consecutive
months of positive prints. These figures continue to support an indication of stabilization in national real
estate values, but we do need to be cautious in coming months to assess whether the housing market will
weather the expiration of the Federal First-Time Buyer’s Tax Credit in November, anticipated higher
unemployment rates and a possible increase in foreclosures.”

Palm Springs Real Estate update 9/29

2009-09-29T12:05:00.000-07:00

STATE BAR TAKES ACTION TO AID HOMEOWNERS IN FORECLOSURE CRISIS
MEDIA CONTACT: Diane Curtis 415-538-2028 diane.curtis@calbar.ca.gov
San Francisco, September 18, 2009 — The State Bar of California, alarmed by the number of lawyers preying on vulnerable homeowners, today identified 16 attorneys who are under investigation for misconduct related to loan modification.
“In my 21 years in attorney discipline, I have not seen a crisis of this magnitude. It is truly unprecedented,” said Interim Chief Trial Counsel Russell Weiner, who is waiving investigation confidentiality in favor of public protection. The waiver, allowed by law, is used only occasionally, but Weiner said the seriousness of the problem demanded a strong reaction by the bar in order to protect consumers. This is the first time the names of more than a few lawyers being investigated have been made public.
“The number of attorneys using their law licenses to essentially take money from unwary but trusting consumers is astounding,” Weiner added. “There are literally thousands of victims who have lost money they could not afford to lose. Under the circumstances, the need for public information and protection is paramount.” Those attorneys being named by the State Bar have allegedly taken fees for promised services and then failed to perform those services, communicate with their clients or return the unearned fees, Weiner said. Some attorneys misrepresented the services they could provide. “It appears these attorneys may have significantly harmed their clients who were already facing great financial pressure and the possible loss of their homes.”
About one-quarter – almost 800 cases – of the active investigations in the Office of Chief Trial Counsel (OTC) are related to foreclosure complaints. The office has experienced a 58 percent increase in active investigations over 2008 due in large part to the huge increase in complaints against attorneys offering loan modification services. “Our office is aggressively investigating these cases and is working proactively with law enforcement,” said Weiner.
In March of 2009, the State Bar created a special team of investigators and lawyers to handle the growing number of complaints received about attorneys offering loan modification services. OTC found that many of the offending attorneys are associated with firms that use telemarketers or phone banks to sign up clients without regard to the facts of the individual case or whether or not the client can be helped, Weiner said.In many cases, the attorneys work with untrained non-attorney staff engaging in the unlawful practice of law by offering legal advice to prospective clients. OTC also is investigating the non-attorney staff for possible referral to law enforcement.
In recent months, OTC has obtained the resignation of three attorneys who were offering loan modification services. Those attorneys chose to give up their licenses to practice law rather than face disciplinary charges and possible disbarment. In addition, OTC lawyers are preparing to put some attorneys on inactive status pending the filing of formal disciplinary charges
Weiner warned consumers to take special caution when seeking legal representation related to loan modification. “Consumers should not be comforted by advertisements that claim the attorney is a member of the State Bar of California,” he said, noting that all attorneys practicing in California on a regular basis are members. “Such membership does not mean the attorney has any special knowledge, experience or expertise in the area of loan modification. In fact, it appears that many of the attorneys offering these services have little or no prior experience in the area of loan modification.”
The following attorneys have received a significant number of complaints related to the loan modification services they were hired to perform. They are entitled to a full and fair hearing on any charges that may be filed in the future. No discipline may be imposed unless and until the State Bar proves allegations of misconduct by clear and convincing evidence.
▪ David Arase, Bar No. 233705, Arase Law Firm and National Housing Assistance
▪ Stephen Burns, Bar No. 113371, Legal Group Network
▪ Robert Buscho, Bar No. 122556, United Law Group
▪ Nicholas Chavarela, Bar No. 251632, Rodis Law Group and America’s Law Group
▪ Steven Feldman, Bar No. 103676, Feldman Law Center
▪ Eric Johnson, Bar No. 224065, Avantgarde Group
▪ Paul Lucas, Bar No. 163076, Lucas Law Center
▪ Brandon Moreno, Bar No. 233750, U. S. Foreclosure
▪ Jeffrey Nemerofsky, Bar No. 213014, U.S. Advocacy Law Group and U.S. Financial Products
▪ Gregory Paiva, Bar No. 207218, Law Offices of Gregory Paiva
▪ Adrian Pomery, Bar No. 249664, U.S. Foreclosure
▪ Ronald Rodis, Bar No. 181873, Rodis Law Group and America’s Law Group
▪ Mark Shoemaker, Bar No. 134828, Advocates for Fair Lending
▪ Marc Tow, Bar No. 78429, Marc Tow and Associates
▪ Michael Yellin, Bar No. 255050, A Fresh Start Loan Modification
▪ Sean Rutledge, Bar No. 255938, United Law Group
The State Bar suggests that consumers be wary of attorneys offering loan modification services under any of the following circumstances:
Advertisements of the office do not expressly identify by name the attorney who is responsible for the business.
Office staff will not readily identify by name the attorney responsible for oversight of the business.
The attorney in charge of the office is too busy or not willing to meet personally with prospective clients.
The firm advises a consumer to stop paying the existing mortgage.
The business, through its advertisements or claims of its representatives, makes claims that sound too good to be true, such as claims of a 90 or 100 percent rate of success in obtaining loan modifications, or claims that a reduction in the mortgage principal is likely to be achieved.
The business demands payment of a large fee, even before obtaining a prospective client’s basic income and expense information, and information about the existing mortgage and present home value.
The attorney responsible for the business is not licensed to practice law in the state where the consumer resides.
There are legitimate loan modification services and ethical attorneys that are providing the promised services for their clients. Two places to start in the search for loan modification assistance are: HUD Housing Counselors, 800-569-4287, http://www.hud.gov/counseling; and HOPE NOW, 888-995-HOPE, http://www.hopenow.com.
Consumers can also find qualified attorneys through a State Bar-certified lawyer referral service that can be found on the State Bar’s Web site (www.calbar.ca.gov), or by calling the State Bar’s Lawyer Referral Services Directory at 1-866-442-2529 (toll free in California) or 415-538-2250 (from outside California).
Consumers having a problem with the attorney

Palm Springs Real Estate update 9/24/09

2009-09-24T06:44:00.000-07:00

Fed leaves key interest rate unchanged, cites improvement in housingThe Federal Reserve this morning announced it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time. “Information . . . suggests that economic activity has picked up following its severe downturn,” the Fed said in a prepared statement.
“Conditions in financial markets have improved further, and activity in the housing sector has increased. Household spending seems to be stabilizing, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit. With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Committee expects that inflation will remain subdued for some time.”

To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve also said it will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt, and will gradually slow the pace of these purchases in order to promote a smooth transition in markets.