Real Estate, Realtor, MLS Home Sales for Sonoma County, California.

Beware of Foreclosure and Loan Modification Rescue Scams - Help Is Free!

2009-07-06T07:11:00.000-07:00

Beware of Foreclosure and Loan Modification Rescue Scams - Help Is Free!

This is a valid link. When online make sure it is an .gov web site for real information. http://www.makinghomeaffordable.gov/beware.html
Read More About Santa Rosa, Sonoma County Short Sales
AS home foreclosures continue to rise, lenders are intensifying efforts to assist troubled homeowners. But financial advisers warn that borrowers should be vigilant about the type of help they are being offered.

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“The average loan servicer wants to reach a resolution about a loan modification with a single letter or a phone call,” said Steven Horne, the president of Wingspan Portfolio Advisors, which helps clients renegotiate loan terms. But, he said, devising an effective long-term strategy to enable a borrower to avoid foreclosure might take several rounds of communication.
Many borrowers who obtain loan modifications, in fact, soon find themselves in trouble again. According to a government survey, 53 percent of the borrowers who had changes to their loans in first quarter of 2008 began missing payments within six months.
John C. Dugan, the comptroller of the currency, said he was baffled by the results, which were released this month.
But Mr. Horne, a former executive at Fannie Mae, suggested that the new loans had not been structured to best meet borrowers’ financial circumstances, in large part because the loan servicers that collect mortgage payments cannot engage in a lengthy analysis of each borrower’s finances.
It is up to the borrowers, therefore, to be more proactive. Mr. Horne says they can increase the likelihood of securing the right loan if they push for more personal attention, and do a little homework about their own finances.
Borrowers should devise a firm budget and determine what monthly payment they can actually afford. Some help can be found at the Internal Revenue Service’s Web site (IRS.gov). Visitors who type in “Collection Financial Standards” into the search box will be directed to pages (sometimes by state) that offer guidelines, based on consumer surveys, of what they can reasonably expect to pay for food, clothing, housekeeping supplies, out-of-pocket health care, utilities and transportation.
For instance, an average family of four in Manhattan (with no one over age 65) would incur total monthly expenses of about $7,614. That includes $1,370 for food, clothing and other items, $228 for out-of-pocket medical expenses, $652 for public transportation and $5,364 for housing-related expenses.
The latest foreclosure figures suggest that New York, New Jersey and Connecticut are generally doing better than the rest of the nation but that problems are worsening.
According to the Mortgage Bankers Association, the foreclosure rate for so-called prime mortgages with fixed interest rates was twice what it was two years ago. In Connecticut, 0.52 percent of these mortgages were in foreclosure at the end of October, the trade group said. In New York, the figure was 0.71 percent, and in New Jersey, 0.9 percent, just slightly higher than the national average of 0.86 percent.
The picture for subprime adjustable-rate mortgages was bleaker. About 17.7 percent of these loans were in foreclosure at the end of October in Connecticut. In New York, the figure was 24.5 percent, and in New Jersey, 25.6 percent. The national average was 20.65 percent.
At the same point in 2006 — before most sub prime ARMs started adjusting upward — Connecticut’s foreclosure rate for these loans reached 4.6 percent. In New York, the failure rate was 5.8 percent, and in New Jersey the figure was 4.7 percent, which was identical to the national average.

Sub prime ARMs in the three states total 172,257, 12 percent less than two years ago, according to the mortgage trade association.

The successful short sale in Sonoma County allows you to avoid foreclosure and minimize your negative consequences, one of which may be the satisfaction of the deficiency created by a short sale.

Call for a personal and confidential analysis,

Craig Bassignani

REALTOR Lic # 01428827

Serving Sonoma County, Santa Rosa, Rohnert Park, Cotati, Sebastopol, Windsor

US insured mortgage defaults resume upward trend

2009-07-05T19:45:00.000-07:00

US insured mortgage defaults resume upward trend

Tue Jun 30, 2009 8:08am EDT

NEW YORK, June 30 (Reuters) - Defaults on privately insured U.S. mortgages rose in May following three months of declines, and the number brought up to date fell, providing new evidence that the nation's housing market is still deteriorating.

The Mortgage Insurance Companies of America, a trade group, said 87,904 insured borrowers were at least 60 days late on payments in May, up 8 percent from April and up 29 percent from a year earlier. Late payments often foreshadow foreclosure.

Mortgages brought up to date totaled just 52,590, down 10 percent from April and the fewest since January. But so-called insurance cures were up 29 percent from a year earlier.

Private mortgage insurance lets people buy homes with down payments of less than 20 percent, and guarantees that lenders will be repaid even if borrowers default. Insurance in force totaled $922 billion in May, the trade group said.

The industry has been tightening its standards after struggling with losses from having backed subprime and other risky mortgages, which have eaten into capital. Increasingly, mortgage providers are demanding 20 percent down payments, which could obviate the need for mortgage insurance.

In addition, while most major U.S. home loan providers adopted mortgage-modification programs in the last year to keep borrowers in their homes, many foreclosure moratoriums expired in March.

MICA compiles data from American International Group Inc's (AIG.N) United Guaranty Corp, Genworth Financial Inc (GNW.N), MGIC Investment Corp (MTG.N), Old Republic International Corp (ORI.N), PMI Group Inc (PMI.N) and Radian Group Inc (RDN.N).

Get ready for high end foreclosed homes

2009-05-29T09:28:00.000-07:00

Our higher priced homes are starting to be affected by a more normal type of recession forces. Our last leg down was induced by sub-prime loans. This time it is the "pick-a-pay" or option pay loans that are starting to reset.

Home owners in these loans are running negative equity and are not only underwater based on prices but worse due to negative amortization. Meaning they have only paid interest only or less than interest.

Find higher end foreclosures here

Actually...

2009-05-02T08:55:00.001-07:00

Financial Comeback...

...waiting for the bottom

Where is the Outrage?

2009-05-02T08:20:00.000-07:00

Where is the Outrage?

According to the numbers published this past week by the Washington Post, along with countless others, in 2008 alone there were 2.3 million home foreclosures in the United States. 2.3 million. 2.3 MILLION!

... That's 191,667 a month. ... 44,231 each week. ... 6,301 every single day, 365 days a year.

Take my house... Please!

Short Sale and Bank Owned Santa Rosa Homes

2009-04-20T06:47:00.000-07:00

We are expecting a surge of foreclosure homes in our area. Short Sales appear to be taking not as long as previous sales. The corporate sellers are approving deals as they work through inventory.

Buyers are awaiting the release of REO's and Bank Owned Homes in Santa Rosa. Demand for homes in the 200K,s range is fierce.

We anticipate larger and more expensive homes being Sold as foreclosures as economies falter.

To research market conditions for Santa Rosa Homes for Sale visit http://www.santarosaca-realestate.com/

Buyers Looking For The Bottom

2009-03-19T11:42:00.000-07:00

Activity on our Websites are at 1 year highs. Buyers are sitting on the sidelines trying to determine a bottom. Many homes are being purchased with 8 plus offers and are going quickly.

Availability of financing and low prices have our market moving at a brisk pace. Main price points are everything 400K and lower.

Follow these links for more information.
What is a Foreclosure?
What is a Short Sale?
Why Do I need to be Pre-Approved?
I want to find the best deal, How Do I Start?
NEW TAX CREDIT WORTH $8000.00

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Stimulus Bill

2009-02-06T15:31:00.000-08:00

This week may prove to be a truly historic one in our industry.

As we write to you, the Fix Housing First Act of the Senate’s Economic Stimulus Bill is currently being debated. This Act includes a $15,000 tax credit for homebuyers that has already verbally been passed. Also on the table is a provision to lower 30-year fixed-rate mortgage rates down to 4-4.5 percent for eligible homebuyers.

As members of the real estate industry, we must take action today in support of these measures that could become catalysts for the recovery of the housing market and our country’s economy.

We ask that you take immediate action via phone or email to support the Senate’s version of the Economic Stimulus Bill and let your Senators and Representatives hear your voice!

Forward this message to everyone in the real estate industry that you know! Regions, follow up with all your market centers and encourage everyone to take action TODAY! Leaders, talk to your agents and gain their support and commitment to take action!

Click here to download a step-by-step guide for contacting your Senator or Representative via phone or email.
Click here for a composed note to send to your Senator or Representative.
If you are not familiar with this Act, click here for more information.

(Source: http://ensign.senate.gov/public/)

We believe that these measures could pave the way to a turnaround in the real estate market. This legislation, coupled with several years of pricing corrections in markets across our country, will create a strong urgency for home buyers to re-enter the market and start our industry on the road to recovery.

After the Senate has passed their version of the bill, negotiations with the House of Representatives begin to get a final bill drafted. Many Senate and House leaders are pushing to have the final bill on President Obama’s desk by end of next week.

Now is the time to take action and become a voice for our industry and our country.

Market Update

2009-01-08T10:07:00.000-08:00

Happy New Year!

Well, it looks like more bad news about the economy continues to keep the market nervous. Retail sales for December were down enough for retailers to announce store closures and layoffs.

On the flip side, the move towards security is helping push rates down below the 5% mark. I am seeing the 30 year conforming purchase money rate hit 4.5% with 1 point for 20% down 760 Fico score buyers! That's 2% lower than just 3 months ago. The 2% difference gives your client an additional $60,000 in purchase money for the same monthly mortgage payment they started with 3 months ago.

A client can buy more home today with cheaper money and more inventory on the market compared to 3 months ago! A client would save around $500 a month for the same $400,000 purchase money compared to 3 months ago! Sorry for sounding redundant. I just want to drive the message that this is a great environment for a buyer. What a great way to start the new year. Refinance rates are not as low, but they are low enough to drive keep lenders busy. Purchases still take priority for me and I am still closing my deals in 30 days. Call me or email me if you have any questions, I'm happy to help. CHECK BACK OR CALL AS THESE RATES MOVE DAILY

Craig

Consumer Confidence in Foreclosed Properties Wanes

2009-01-07T15:23:00.000-08:00

Despite the glut of foreclosed homes on the market, fewer people said they would be willing to buy a one, and an over whelming majority expect a discount of at least 25 percent on a foreclosure purchase, according to a survey commissioned in November by RealtyTrac and Trulia and released this week.

Compared to a similar survey conducted seven months earlier that showed 54 percent of Americans would consider purchasing a foreclosed home. Seven percent fewer people, 47 percent, now said they would consider buying a foreclosed home.

In the April, 2008 survey, 69 percent of American adults felt there were negative aspects of purchasing a foreclosed home, such as hidden costs, risky process, home losing value and personal connection with foreclosure. In the most recent survey, that number jumped to 80 percent.

The survey also showed consumers expect considerable discounts. More than 75 percent of survey respondents said they should pay at least 25 percent less for a foreclosed home, and 30 percent said they expected a discount of at least 50 percent less than a comparable home not in foreclosure.

“What’s significant about our findings is that just as the market is being flooded with more foreclosures, home buyers are more hesitant to buy them. Pete Flint, co-founder and CEO of Trulia, said. “Misinformation around foreclosures abounds and that’s dangerous for the market and for homebuyers.”

RealtyTrac SVP Rick Sharga said more consumer education about foreclosures is needed.

Being that the sale of foreclosed properties has been on the rise due to the increased inventory and discounts available on foreclosed homes, it is somewhat counterintuitive — although not totally unexpected — that consumers are more hesitant to purchase a foreclosed property,” he said.

Investment Property to Personal Residence

2008-12-29T08:31:00.000-08:00

New Limits on Gain Exclusion!

Do you plan to convert an investment property into your personal residence? The Housing Assistance Tax Act of 2008 that President Bush signed into law on July 30, 2008 carries a provision that affects the practice of excluding gain when you sell a property that was once used for another purpose, such as a rental property, and then converted into your personal residence. The effect of the new law is a restriction on the amount of gain you can exclude through Section 121, the personal residence exclusion section of our tax code.

Section 121 of the Internal Revenue Code allows a gain of up to $250,000 ($500,000 if you are married and file jointly) with no tax obligation when you sell a house used as a primary residence for two of the previous five years. You don't even need to occupy the property for two consecutive years during the five year period; just two years out of the five in any form.

As of January 1, 2009, the new law reduces the amount of gain that you can exclude if you have used the property for any purpose other than as a primary residence. The reduction is applied on a pro rata basis by determining the percentage of years the property is not used as a primary residence purposes to the total years the property is owned by the taxpayer.

Sometimes examples help clarify things. Here's one: a married couple acquires a house that they use as a rental in 2009. The couple rents the house for four years, and then moves into it and uses it as their primary residence for the next two years. The couple sells the property at the end of year 6 with a gain of $300,000. Applying the old law, the couple would be eligible for the full $500,000 exclusion and would owe no tax. The new law requires the application of the proration described in the paragraph above. Two-sixths (two out of six years) of the gain, or $100,000 would be eligible to be excluded.

Exceptions to New Law:

A couple of interesting exceptions to this new restriction exist. First, periods in which the property is not used as a primary residence that occur prior to January 1, 2009 do not reduce the excludable gain. Using the example provided above, if the three year rental period occurs prior to January 1, 2009, the exclusion would not be reduced and the couple would be able to exclude gain on the sale up to the full $500,000.

A second interesting exception is if you convert property that you first used as your primary residence into investment property, it will not be affected by this new law. By way of example, consider this scenario: you own and live in a house for eight years, at which time you move out and rent the house for two years before selling it. Since your investment use of the property took place after your use as a primary residence, all of the gain accumulated over your 10 year ownership of the property can be excluded up to the $250,000/$500,000 limits.

There are also some limited exceptions for taxpayers who serve on "qualified official extended duty" or are temporarily absent due to changes of employment, health conditions or other unforeseen circumstances. Individuals in those situations should have their tax advisors review the new law to determine whether the exceptions could be of benefit to them.

Combining Exclusion with 1031 Exchange

One thing that did not change is the requirement to own property for at least five years if you acquire it in a 1031 exchange and subsequently convert it to your primary residence before it is eligible for the Section 121 exclusion.

If you convert your primary residence to an investment property and subsequently sell the property, you should be eligible to combine your Section 121 exclusion with a Section 1031 tax deferral for the gain that is not excludable under Section 121.

Hopefully this did not make your head spin too much. It is clear that some complicated situations could arise out of the application of this new law. Advance planning through consultation with your tax advisor is a must. The inclusion of a knowledgeable exchange expert in the planning process would be equally beneficial.

Please consider our resources as your source for answers to your questions about Section 1031 like-kind tax-deferred exchanges. Contact us at your convenience for prompt, accurate information. Please think of us for your next exchange.

2008-12-10T06:30:00.001-08:00

Short Sale Essentials
Tags:
A Short Sale is a carefully agreed upon sale of a property where a lender is willing to accept less than the amount owed on it because the borrower, due to an acceptable hardship, is unable to make payments.

For homeowners, there are only 23 universally “acceptable hardships” that cause “unexpected” financial crisis in their lives. The lender accepts an offer to purchase from a 3rd party buyer, thus relieving the original owner from encumbrances and potential, future liabilities. Home lenders are willing to take less for the home than is owed on it and less than it’s worth in today’s declining market. Why? Because lenders will lose more if the property goes into foreclosure, and so will the homeowner.

There are three stages in the foreclosure process. They are pre-foreclosure, foreclosure and post– home foreclosure.

The pre-foreclosure stage is the only one where everyone comes out a winner. In the foreclosure stage, the homeowner’s FICO credit score can be reduced by 250-280 points and it will take 3-5 years before a lender will offer a sensible interest rate to make it possible to buy another home.

In the “pre-foreclosure redemption status” stage, with the help of a Realtor® , trained to negotiate a "short sale" with the lender, the FICO credit score will only take an 80-100 point "hit", and the homeowner will be able to buy another home with a good rate in 18 months to 2 years or less.

Other advantages of the "short sale" option in the pre-foreclosure stage include the possibility of leasing back the home from a third party investor/buyer, no defficiency judgement, no repair costs, no money to closing, stopping nagging collectors, avoid bankruptcy, a smoother transition to get out from under and get on with life. As a trained Realtor® you will be able to explain the other pre-foreclosure options you have to assit you a distressed Seller in making a decision that's in their best interest.

With over 1 million properties expected to be in foreclosure this year, the difference in losses to be sustained by lenders between a negotiated short sale and a fully executed foreclosure is estimated to be in excess of $50 Billion. The costs to the Lender for commissions, closing costs, basic repairs, property maintenance, insurance, taxes, homeowner association dues, eviction and court costs, attorney fees, and much more averages about $400 a day for an average priced home.

Over the 11+ months that the Lender has to carry the property and their hard costs can add up to over $130,000. When you subtract these costs from the reduced sale’s price dictated by the depressed market and then take that sum away from the over-extended loan balance, the lender’s loss is substantially greater than a quick short sale. Time certainly is money!

It should come as no surprise to Sellers that they’re behind in their payments or can’t afford to continue making payments on their home because of a recent rate adjustment or for whatever other reason that has put their life in crisis. Sellers should not ignore the notice or telephone call that reminds them of their obligation. They should call their lender immediately so they won’t accelerate the process of foreclosure.

Remember, the lender does not want the property. Realtors® play the most important role in helping distressed Sellers reorganize their obligation to make their home more affordable, or get them out from under. by creating a WIN-WIN-WIN situation.

2008-12-04T07:17:00.000-08:00

The National Bureau of Economic Research on Monday determined that a peak in economic activity occurred in the U.S. in December 2007, and declared the U.S. economy officially in recession since that time. The December 2007 peak marked the end of the expansion that began in November 2001 and lasted 73 months; the previous expansion of the 1990s lasted 120 months.

A recession, as defined by the National Bureau of Economic Research, is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators. A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.

Because a recession is a broad contraction of the economy, not confined to one sector, the National Bureau of Economic Research emphasizes economy-wide measures of economic activity when determining a recession."It's more accurate to say that a recession -- the way we use the word -- is a period of diminishing activity rather than diminished activity," the National Bureau of Economic Research said in a prepared statement.

Sonoma County Last two month sales

2008-11-29T08:50:00.000-08:00

Bay Area Real Estate Information Services, Inc.Sonoma CountyTwo-Month Closed Sales Report RESIDENTIAL: SFR, Condo/Co-op, Farms & Ranches, Mobile/Floating STATUS: SOLD

Santa Rosa Foreclosures

2008-11-29T08:47:00.000-08:00

Santa Rosa Ca Bank Owned UPDATED and CURRENTKEY A=Active CC=Accepted Offer P=Pending S=Sold DOM=Days on Market LP=List Price OLP=Old List Price

New and Changed Listings for the Sonoma County Real Estate Market

2006-07-21T12:07:00.000-07:00

Listing # Price Address Area Type BD BA Sq Ft
20626725
1,097,500 18 Old Creek Rd Petaluma West SFR 4 2 (2 0) 1922
20623679
617,900 8031 Mackey Ct Cotati/Rohner SFR 4 3 (2 1) 1883
20624073
589,000 6608 Greenmeadow Dr Northeast San SFR 3 2 (2 0) 1792
20626717
568,800 1955 Dogwood Dr Northwest San SFR 3 3 (2 1) 1416
20626715
510,000 5 Ramona Ct Petaluma East SFR 3 1 (1 0) 960
20626385
509,000 2569 Edgewater Dr Southwest San SFR 3 3 (2 1) 1692
20625266
479,000 18049 Comstock Ave Sonoma SFR 2 2 (2 0) 886
20626722
282,500 799 Rockwell Pl Northwest San SFR 2 3 (2 1) 880
20626719
75,500 835 Mercie St Northwest San MOBL 2 2 (2 0) 1200
20626718
35,000 54 Colonial Park Dr Northeast San MOBL 2 2 (2 0) 1114

New Real Estate Listings For Sonoma County

2006-07-12T08:39:00.000-07:00

Listing #
Status Price Address Area Type BD BA Sq Ft
20625262
Active 1,575,000 2240 Trinity Rd Sonoma SFR 3 2 (2 0) 1908
20625237
Active 1,175,000 1431 E Napa St Sonoma SFR 3 3 (2 1) 1692
20624499
Active 975,000 4949 Wikiup Bridge Way Northeast San SFR 3 2 (2 0) 2164
20624169
Active 895,000 1925 Los Alamos Rd Northeast San SFR 3 2 (2 0) 1719
20625012
Active 857,000 332 Buena Vista Dr Northeast San SFR 3 3 (2 1) 2084
20624809
Active 784,000 947 Holly Ave Cotati/Rohner SFR 6 3 (3 0) 2598
20625279
Active 654,000 680 Decanter Cir Windsor SFR 3 3 (2 1) 1998
20625217
Active 615,000 1116 River Pine Cir Petaluma East SFR 3 2 (2 0) 1382
20625155
Active 599,500 945 Lee Ct Sonoma SFR 2 2 (1 1) 1136
20624485
Active 599,000 17890 Riverside Dr Sonoma SFR 3 2 (2 0) 1436
20625065
Active 499,000 1949 Terry Rd Northwest San SFR 3 3 (2 1) 1413
20625266
Active 499,000 18049 Comstock Ave Sonoma COND 2 2 (2 0) 886
20624707
Active 449,900 17474 Huckleberry Ave Russian River SFR 2 2 (2 0) 1261
20624631
Active 425,000 1001 Santa Cruz Way Cotati/Rohner COND 3 2 (2 0) 1632
20625267
Active 395,000 1369 Parkway Dr Cotati/Rohner COND 3 2 (2 0) 1421

Think, Plan and Organize

2006-06-29T08:41:00.000-07:00

Home Buying Tips

1. Before you buy a house, call around and see if a local community agency offers a course on home ownership. If so, take it; you won’t regret it.

2. Don’t allow yourself to be pressured by the seller or the real estate agent. Take your time. Make a list of the positive reasons for buying the house. Make a list of the negative reasons for buying the house. This is one of the most important decisions you will ever make. Don’t make it too quickly.

3. An appraisal report tells you the market value of a property. Get your own certified appraiser to prepare an appraisal report for you. You should be able to get an appraisal report for about $375.00 and it’s worth it. Don’t simply accept the appraisal provided the lender who gives you a mortgage.
If you can’t afford an appraisal, go to the County Clerk’s Office and research what homes have been selling for in the neighborhood. Or call a real estate agent and ask what homes have been selling for in the neighborhood.

4. Don’t assume that the asking price is a good price.
Get a home inspection. Find out ahead of time if the home needs repairs. Don’t find out that your roof leaks only after you have moved into the house. A home inspection may cost $350.00 but it’s worth it.
If you can’t afford a home inspection, find a friend who has some construction knowledge to tour the house with you.

5. Don’t simply accept the representations of the seller or real estate agent. Do your own homework. No one will protect your interests like you will.
If the seller is holding the mortgage, make sure the interest rate is reasonable compared to the rate that the larger banks are charging.

6. Don’t be afraid to ask questions. Buying a home isn’t an every day experience. Bring a friend along.

7. Let your Real Estate agent do the work you hired him/her for. Experience is a most valuable asset when contemplating large decisions.

Craig

Check Your Credit

2006-06-16T20:06:00.000-07:00

Coping with credit

For many people, exposing their credit records is one of the most difficult parts of buying a house.

Perhaps you let a department-store credit card lapse with a $5 balance due. This kind of glitch is usually easy to fix and won't stand in the way of your loan. Bankruptcy, on the other hand, stays on your record for up to 10 years. Understand how lenders look at credit and take steps to clear your credit before you actually apply for a loan. You'll make the loan process a lot easier.

Your Credit Score: The Magic Number

Lenders are streamlining and even automating at least part of the home loan business. Many lenders—as well as the big players in the secondary mortgage market, Fannie Mae and Freddie Mac—now use credit scoring as one way to speed up the loan process. People with higher credit scores usually obtain lower interest rates, so it can benefit you if your credit is good.

Most consumers never see their credit score when they apply for a loan. Your credit score is a statistical analysis of the likelihood that you'll pay back a loan on time. It draws from approximately 100 variables in your credit report, including delinquent bills, outstanding debts, the number and amount of balances you owe your creditors, and your credit history. Your credit score is a number between 400 and 900. The magic number is anything over 620. If you score above 680, lenders will usually consider you a premium borrower, which makes you eligible for lower rates and better terms. If your number is below 620, however, you are likely to be rejected. Red Flags Lenders don't want to see these on your credit report: Late payments Recent credit inquiries Overextended credit Liens Paycheck garnishments and Bankruptcy.

If a lender turns you down for credit reasons, find out exactly what those reasons were and take steps to remedy the situation:

1. Ask your lender for a copy of your Residential Mortgage Credit Report. This report is from a compilation of your personal credit profile for the past seven years drawn from the three major credit reporting agencies: Equifax, Experian, and Trans Union. It is more detailed than the report you will get from one credit bureau.

2. Review your report and ask the credit bureau to re-investigate any marks you find questionable. The credit bureau should provide a form for you to make this request in writing. After you submit the form, the credit bureau has 30 days to investigate your claim and change your record. If you are correct, or if the creditor who gave you the bad mark can no longer verify the information, the credit bureau must remove those marks from your report. Incidentally, a credit bureau may remove an item summarily if checking the item is more trouble than it's worth.

3. If the information in the report is correct, check the date of the bad mark. With few exceptions (such as bankruptcies) the credit bureau should remove credit information on file for more than seven years.

Bankruptcy

Bankruptcy significantly lowers your credit rating and may stay on your record for up to 10 years. If you declared bankruptcy recently, though, you may still be able to borrow money to buy a house. In addition to credit scoring, lenders rate borrowers from A to E (A-rated borrowers are the best credit risks). If you filed bankruptcy more than a year ago (but less than 10), a lender will probably give you a C rating. As a C-rated borrower, you can expect to pay a higher down payment (20 to 35 percent of the price of the home) and between 1 to 3 percentage points more in interest than an A-rated borrower. If your credit rating is lower than an A, you may also have to bypass commercial banks altogether and go to a mortgage broker that specializes in difficult loans.

Investing In Real Estate

2006-06-01T14:44:00.000-07:00

You don't have to be Donald Trump to make money in real estate. Anyone can be a mini-real estate mogul if you have both the temperament and money to make it work.

With the right real estate investment, other people will increase your equity while you're taking advantage of tax depreciation and price appreciation.

The key to success is to start small, move sensibly and gain experience. So we will begin with the easiest, least expensive investments and move up to the most speculative, most complicated.

Your Own Home
A good way to test the water is with your own home. Rent out a bedroom and bath on an annual basis. Or, if you prefer a shorter term, rent to a professional who has been transferred into the area for a short-term assignment or who needs a place to stay while looking for a house to buy. Teachers often rent. So do writers and artists seeking a Virginia Woolf style "room of their own"—one that is quiet and away from the everyday distractions of their own home.
Don't overlook your garage or storage space.
Or, if you have a very spacious house, you might do what Florence Griswold did in Old Lyme, Connecticut, in the early 1900s. She housed talented painters and sculptors, turning her mansion and carriage house into an art colony.
Before you rent, check your homeowner's insurance policy to make certain you are adequately covered in case your renter has an accident, is injured or for some reason decides to sue you. You may need to take out an umbrella policy.
Avoiding the tenant from hell. Interview prospective renters with someone else present to get a second "take" on the person. Check at least three personal and three business references and then draw up a clearly written lease in which you require one or two months' rent as a security deposit.

A Rental Property
Next on our list of options is buying a two- or three-family home, living in one part and leasing the rest to tenants. Or, if you have adequate resources, you could move directly to buying a single-family house for rental purposes.
Begin by looking for property in your own neighborhood—you know that market best. Other premium rental areas are middle income family neighborhoods and properties near military bases and colleges and universities—people with transient lifestyles usually rent rather than buy.

$Tip: Housing for people with disabilities is always in great demand. Widen doorways to accommodate a wheelchair. Put grab bars in the bathroom, kitchen and elsewhere. Install railings. Even out all floors. Add ramps throughout the house and to the backyard, deck, driveway and front sidewalk.
Expect your lender to require a bigger down payment and a slightly higher interest rate on a rental property than on a primary residence. Compare local offers with those available from Freddie Mac at www.freddiemac.com.
Your property should rent for at least 5 percent, preferably 10 percent, above your total costs. Determine your PITI (monthly principal payment, interest, taxes and insurance), plus the cost of yard and pool service. That's the amount of rent you will need just to break even, provided the renter pays the utilities. Add to that enough to cover repairs, renovations and upkeep. You will also need an emergency slush fund—money for those down times in between renters.

$Tip: Study the "For Rent" section in the paper for several weeks to see what comparable properties are renting for. Visit several. Find out what the competition is offering and charging.
Legal restrictions. In New York City, a building with three or more residential units is considered a multiple dwelling. Owners must register these buildings with the Department of Housing. These owners, however, are not bound by the rent laws and can charge whatever they want. Find out what your community's laws are for residential property, including any rental caps, your right to evict tenants, to reject pets, to turn away someone with children.

Investing to Sell
If you're handy with a hammer, or someone you know is, then buying a single-family fixer-upper and selling it is an option. Start with an inexpensive single-family home, preferably in your neighborhood or within a short drive.
$Tip: Join a real estate investment group. You'll not only learn about local lenders, contractors and real estate agents—including those to avoid—but also how others have made (or lost) money.

Investing in Land
Buying beachfront property with a lake, mountain or river view is often very profitable—after all, there are only so many acres with views left in the country. You or someone else will eventually want to build a house, restaurant or resort on such a choice piece of land.
Nevertheless, land, our most speculative choice, is the one in which many investors get burned. Knowing the potential pitfalls, however, helps clear the way for making smart decisions. Here are the four key things to watch for:
Zoning. You buy land with the idea of eventually building a house or houses or an office building, and the town fathers change the rules, rezoning the area.
The market. The area you anticipate being "hot" several years from now never even gets to lukewarm. In the meantime, your capital is tied up and you're stuck with an annual tax bill.
Disasters. Local officials approve a nearby power plant, dump site or strip mall.
Roads. A major (and noisy) highway is constructed, ruining a bucolic area.
Study the zoning rules carefully. What is the long-term plan for the community or county? Find out about current and future easements, as well as access to water, sewage and electricity.
If you plan to build your own house on the land, be sure you plan to remain in the area and that your employer won't be transferring you across the country.
Land loans. Financing land is expensive. Lenders regard land loans as far riskier than regular mortgages. Because the property isn't being used, the owner is more likely to walk away, leaving the lender stuck with a piece of non-income-producing acreage. Because of this added risk, down payments and interest rates are higher than with traditional mortgage loans. Be prepared to make a down payment of 20 to 50 percent. The most difficult type of land to finance is "unimproved" or "raw" land—land with no plans for sewers, utilities, streets or structures.
$Tip: Local lenders, familiar with the property, are more likely to grant a loan than a lender unfamiliar with the area.

If you find the loan terms too onerous, consider a home equity loan or refinancing your current mortgage. You should wind up with a lower rate since you are securing the loan with your home. Finally, be sure you can afford to pay the taxes on the land long term. You may not be able to re-sell or build as quickly as you initially anticipated.

Before you go down this path..
To be successful as a real estate investor you must:
Have access to cash. No matter what type of property you invest in, you will need deep pockets. You must have plenty of income—from a steady job, a trust fund or other investments. And your credit rating should be impeccable.
Be entrepreneurial. You should enjoy negotiating and making business decisions. Being a mini-real estate mogul is not for the timid.
Enjoy research and fact finding. You'll need to study zoning laws, and trends in housing and interest rates. Many communities have an association of landlords or real estate investors. Join to learn about local laws and regulations governing rental property. Being a member will also keep you in the loop about prices, landlord liabilities and eviction procedures.

Buyers Or Sellers

2006-04-07T06:39:00.000-07:00

Buyers - We make finding the perfect home stress-free. A qualified and informed Realtor® will help you negotiate the best price and guide you through the escrow process. This includes finding homes for sale, condominiums, commercial real estate, lots or land for sale in Northern California, including real estate in Santa Rosa, Petaluma, Rohnert Park, Cotati, Healdsburg, Sonoma, Cloverdale, Sebastopol or any other city that is of interest including property outside of the Sonoma County area (see community list at right for more information).
Sellers - An experienced local Realtor® who is familiar with your area will work hard to sell your property, home or land at the highest possible price no matter where you live in Northern California or the U.S.

Interest Rates and Bond Markets for 3/22/06

2006-03-23T04:28:00.000-08:00

U.S. Treasury securities rebounded early Wednesday from Tuesday's sell-off, with yields above 4.7 percent attracting buyers. But because yields move in the opposite direction of prices, yields began moving down and buyers left. Sellers took over, sending yields on longer-term bonds back to yesterday's levels. Stability in yields, which guide mortgage rates, led to stable mortgage rates, as they move in sync with yields.

The yield-curve inversion - when the yield on a two-year note is higher than the yield on the 10-year note - steepened today, but this is not big news; it was when it happened several weeks ago. It was commonly believed that this occurrence could signal an economic slowdown, or even recession, as it has in the past. But most economists today, including Alan Greenspan and Ben Bernanke, do not believe that scenario will play out at this time due to strength in the economy.

The only news today came from the Mortgage Bankers Association, which reported a decline in mortgage applications for the week ended March 17. Applications to purchase fell 2.3 percent, while refis edged down 0.6 percent. This left the application index well below levels of one year ago.

Dow moves up smartly, Nasdaq lags

The Dow Jones industrials headed into positive territory at opening, boosted by news that GM had cut a deal with Delphi, its parts supplier, and the UAW regarding worker compensation. Shares of the automaker roared ahead but lost steam during the day and closed nearly flat. The news, however, set a positive tone, and the Dow closed with a big gain. On the other hand, Microsoft pressured the Nasdaq with the announcement that it would delay the introduction of its new operating system, Windows Vista, until early 2007. This sent not only Microsoft shares down, but also those of computer manufacturers, which may be negatively impacted by the delay.

Strong earnings from Morgan Stanley that beat estimates sent its shares up and boosted those of Goldman Sachs and Bear Stearns - brokerages that recently reported bullish numbers. And Bristol-Myers and Sanofi-Aventis each gained nearly 10 percent after settling a patent dispute with a Canadian company surrounding Plavix - a blood-thinning drug.
The Dow closed near a six-year high, led by Caterpillar with a 2.8 percent increase. Other big gainers included JP Morgan Chase, which was up 2 percent, and 3M, which added 1.5 percent. Verizon, Altria, Intel and United Technologies each contributed 1-percent increases. Only six components closed negative, led by Microsoft, which shed more than 2 percent. Disney dropped 1 percent, but other losses were small.

The Nasdaq composite struggled all morning due to the Microsoft news, but it broke into positive territory at noon and closed up -- just over 2,300. Although Microsoft never recovered, some big-cap techs did well on the session. Oracle, which was punished yesterday for disappointing the street with its earnings, closed up 2.7 percent, while Ericsson and Yahoo! each hit the 2-percent mark in gains. Even Sun Microsystems added 1.9 percent.

As of 4 p.m. EST:

The Dow Jones industrial index closed up 81.96 points (+0.73 percent) to 11,317.43; the Nasdaq composite gained 9.12 points (+0.4 percent) to 2,303.35, and the Standard & Poor's 500 index rose 7.81 points (+0.6 percent) to 1,305.04.
The 30-year Treasury bond closed up 4/32 in price with the yield falling to 4.72 percent, from 4.73 percent on Tuesday.
The 10-year Treasury note closed up 1/32 in price with the yield holding at 4.70 percent.
The five-year Treasury note closed down 3/32 in price with the yield rising to 4.69 percent, from 4.66 percent on Tuesday.
The two-year Treasury note closed down 1/32 in price with the yield rising to 4.74 percent, from 4.71 percent on Tuesday.
At 4 p.m. EST, average mortgage rates (zero discount points) based on rates collected nationwide were:
The 30-year conventional fixed-rate mortgage was at 6.117 percent, up from 6.114 percent on Tuesday.
The 15-year conventional fixed-rate mortgage was at 5.735 percent, up from 5.73 percent on Tuesday.

Coming up:

Existing home sales for February and first-time unemployment claims for the week ended March 18 are the only economic indicators scheduled for release on Thursday.
Existing home sales, which fell 2.8 percent to an annual rate of 6.56 million units in January, will be watched closely for signs of a weakening housing market, as these sales represent roughly 85 percent of all single-family sales. Analysts are expecting sales to fall to an annual rate of 6.45 million units - a 1.68 percent dip.
First-time claims are forecast to edge down to 300,000, which would be the first decline in the last four weeks. Beginning with the week ended Feb. 18, when claims were at 278,000, the totals moved up each week to 309,000, where they were for the week ended March 11.
Mortgage rates will likely hold near present levels due to the static condition of Treasury yields today.

2006-03-07T20:28:00.000-08:00

Welcome To Sonoma County Real Estate!

Our goal is not only to provide you with superior service and current information, but to help you set goals, build equity and make wise real estate choices.

My Sonoma County Real Estate knowledge and expertise includes these areas: Santa Rosa, Sebastopol, Healdsburg, Petaluma, Kenwood, Glen Ellen, Sonoma, Sonoma Coast, Rohnert Park, Occidental, Forestville, Graton, Cotati, Guerneville and Windsor.

If you or anyone you know would like to discuss Sonoma County real estate opportunities, please give me a Call, Email or fill out one of my online forms to request additional information or have questions answered.

Question Of The Day: Are online home values even close?

:: Seller Marketing
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:: Buyer Representation
Learn about the Free benefits of working with an Exclusive Buyer's Agent. YOUR agent, not the Seller's, will protect your Real Estate Buyers' Interests and Rights by providing many services that a traditional agent might not offer.

Choose our specially trained CPS Brokerage to represent you throughout the home buying process. You may qualify for a Free credit report and home appraisal.

Call today to begin your personal exploration of the possibilities the Sonoma County, Ca real estate market has to offer. Explore our many beautiful cities and towns throughout Sonoma County, California. Santa Rosa, Sebastopol, Healdsburg, Petaluma, Kenwood, Glen Ellen, Sonoma, Sonoma Coast, Rohnert Park, Occidental, Forestville, Graton, Cotati, Guerneville and Windsor.

The stunning scenic beauty and cultural diversity of Sonoma County deliver a style of living that is truly "one of a kind". Rumor has it the wine is pretty good too! You will see why Sonoma County is such a desirable place to live, work, play and invest in real estate for the future.

The desirable Sonoma County area is known world wide. We want to make sure your property reaches the largest and best markets. Research more marketing benefits.

Craig Bassignani
www.sonoma-county-realestate.com

"California @ it's best"