Sonoma County Real Estate, Realtor, MLS Home Sales

2402 College Park Circle, 95401 Short Sale in Santa Rosa

2009-11-07T11:07:00.001-08:00

2402 College Park Circle Santa Rosa Ca 95401

#1 Santa Rosa Short Sale Agent for EsonomaCounty.com

Wine Country Living! Contemporary Home. Features: Tile, Wood floors, gas range, A/C, family room with fireplace, dining are and more. Upgraded colors and additional features. Enjoy this well kept home while close to local conveniences.Virtual Tour Available From Link Below

View all Details of this Santa Rosa Home for Sale

Short Sales - The Long View

2009-11-02T18:08:00.000-08:00

What is a Short Sale - A "short sale" or "negotiated settlement" or "short pay" occurs when a Lender agrees to accept less than the amount owed as a payoff. If the property is worth less than the amount owed on the loan, then even if the Lender forecloses and takes back the property, they know they are going to take a loss. In Sonoma County and Santa Rosa Ca we are starting to see banks want to help the sellers of distressed properties.

HOW LONG WILL IT TAKE? The short sale negotiation process is a lengthy one. It may take 30 days or more to get an approval from the Lender to discount the loan. Many Lenders have several layers of bureaucracy, insurers and investors that have to approve the short sale. They are increasing their loss mitigation departments to deal with the substantial advancing increase in foreclosures, and each loss mitigator may be working on as many as 400 files. So it is important to be patient during this process. Typically, using an aggressive loss mitigation company to conduct the negotiations, a short sales will take 4-6 months from Notice of Default to final close to a new Santa Rosa Home buyer.

More at Sonoma County Short Sales
Santa Rosa Short Sale Help

Home For Sale in Sonoma County Redwoods 3bed-2bath- Must See

2009-10-19T07:06:00.000-07:00

Sonoma County Real Estate

1650 sq ft - 3 Bed 2 Ba Home set in the Sonoma County Redwoods

Ask: 290,000

Santa Rosa Real Estate Sales - 2bd 2ba Condo

2009-10-08T11:57:00.000-07:00

QUIET LOCATION at end of drive way off Mission. 2/1.5 Condo - With Upgrades. Ceiling fans w/ remote. Appliances included, W/D hookups in unit. Bamboo floors! Large fenced yard with redwood deck & drip irrigation. Detached garage plus guest parking. Convenient Rincon Valley location. Great schools. Close to shopping,parks and recreation, 1 block to bus and only minutes to downtown.

Additional Features:

Cross Street: hwy 12
Exterior Description: Wood Siding
Fireplace: No
Garage/Parking: 1 Car
Heating/Cooling: Electric
HOA Amount: 207
HOA: Yes
Laundry/Appliances: Hookups only,In Closet
Lot Description: Level
Map Coordinates: A3
New/Resale: Resale
Pool: No

Property Type: RESI
Sale Conditions: Short Sale
School District: Santa Rosa City
Sewer/Septic: Sewer Public
Residential Type: Condo/Coop
Stories/Levels: 2 Story
Style: Contemporary
Total Bathrooms: 2
Utilities: City,Elec. Water Heater,Electric,PG&E
Water Source: Water Public
Year Built: 1978

Will the Government put in a 15000 across the board tax credit from the Gove... er... taxpayers (you and me)

2009-09-17T12:55:00.000-07:00

Question, Is this bailout stopping another bailout? Time will tell.

Strategic foreclosures are up to about 25% along with people trying to hide or divest assets to be deemed a true short sale. Many think this is a foregone conclusion. Pay now or pay later.

Time is fast running out for first-time buyers hoping to get a tax credit of up to $8,000, and Realtors say they're seeing a marked upswing in interest as the deadline looms.

Real estate groups also are urging Congress to extend the credit beyond its current deadline and expand the tax credit to up to $15,000. Now, buyers must close on their purchase by Nov. 30 to be eligible for the credit.

Home builders and real estate organizations are concerned that letting the tax credit expire could knock the wind out of the current housing recovery. And failing to expand the credit could imperil efforts to get more move-up buyers into the market.

The tax credit available to first-time home buyers is already linked with an uptick in sales. For the first time in five years, existing home sales have increased for four months in a row, according to an August report by the National Association of Realtors (NAR).

Sales rose 7.2% in July from June, and pending sales are 5% above the pace seen in July of 2008

Many of those using the tax credit, however, are buying up foreclosed homes that are vacant. That does little to stimulate sales by homeowners looking to move up to more expensive properties. Getting more move-up buyers into the market is considered the second stage of the housing recovery.

And even though the tax credit doesn't expire until Nov. 30, today's home purchases take 45-60 days to close as the underwriting and appraisal process is taking longer because lenders are being more cautious. That means offers that will benefit from the tax credit really need to be in this or early next month.

There is legislation in both the Senate and the House that would expand the tax credit. A proposal by Sen. Johnny Isakson, R-Ga., would raise the credit amount to a maximum of $15,000 for any buyer of any home over the next year. It would remove the income caps that currently apply (those limits are now $75,000 for an individual and $150,000 on couples).

"I think we've got a realistic chance of doing this," Isakson says. "Our problem is not with the first-time home buyer, it's the move-up buyer."

Lawrence Yun, chief economist at NAR, says extending or raising the tax credit would spur the housing recovery, which in turn would help bolster the economy.

Finally.. Lets hope this inspires instead of causing more resentment.

2009-09-17T12:36:00.000-07:00

Jerry Brown, state attorney general and Newsom gubernatorial rival, is in San Francisco this morning to announce a major financial investigation.

At a 10:30 a.m. press conference, Brown is expected to announce the launch of a probe into the role the credit rating agencies played in fueling the financial crisis. Brown says that at the peak of the housing boom, the agencies gave their highest credit ratings to complicated financial instruments, including securities backed by subprime mortgages, so they would appear as safe as Treasury bonds issued by the government.

In rating the securities, agencies earned billions of dollars in revenue at a rate double what they earned for rating other financial products, all while working behind the scenes with Wall Street firms that created the securities backed by subprime mortgages.

PREEMPTIVE MOVE ON S+P PART??

Standard & Poor's Ratings Services recalibrated its ratings criteria for collateralized debt obligations, resulting in the ratings firm's putting about 4,790 CDO tranches totaling $578 billion on watch for downgrade.

The changes will make the CDO ratings more comparable to ratings in other sectors, S&P said.

The ratings agency will introduce tests - both quantitative and qualitative - to supplement its default-simulation model. S&P will also adjust its models to target AAA default rates it believes are commensurate with conditions of extreme macroeconomic stress, such as the Great Depression, as well as BBB default rates consistent with the highest actual corporate defaults over the past 28 years.

S&P said downgrades are likely to be multiple notches after reviewing the tranches over the coming months, with Chief Credit Officer Thomas Gillis estimating that outstanding synthetic CDOs will likely experience an average downgrade of four notches. Super senior AAA tranches will probably be affected less, with expected downgrades of two to three notches, while tranches rated AAA will likely be affected more, with an estimated downgrade of four to five notches.

Of the tranches on watch for downgrade, 1,626 tranches are from 623 European transactions and are $250.5 billion in size.

"We believe that adding quantitative and qualitative elements to our analysis - entirely apart from the Monte Carlo default simulations we run - will provide a more robust analysis than using only simulation models," Gillis said.

Ratings agencies have been criticized about being overly optimistic with their ratings earlier this decade when structured-finance securities were created by packaging loans into newly created investments. CDOs, which use sliced-and-diced assets such as subprime-mortgage bonds to create customized products offering various levels of risk, have been at the heart of steep write-downs at big banks and brokerage firms.

Home Foreclosure Services Coming To a Neighborhood Near You

2009-09-09T13:02:00.000-07:00

Only 12 percent of U.S. homeowners are eligible for loan modifications under the Obama administration's housing rescue plan have had their mortgages reworked, and millions more foreclosures are coming. Per the Treasury. The fact of "strategic" or voluntary foreclosures up to 35% remain a problem.

Foreclosed California home

A Treasury report showed 360,165 people had their monthly payments reduced through August, up from 235,247 through July, but a senior Treasury official conceded much more must be done to soften the impact of a severe and prolonged housing crisis.

Treasury has begun releasing monthly reports on the loan modification program, called the Home Affordable Modification Program or HAMP.

In July, it said that just 9 percent of the estimated number of homeowners eligible had had their loans modified, so Treasury's assistant secretary for financial institutions, Michael Barr, was able to claim modest progress in August.

He told a House Financial Services subcommittee that the program launched in February, which brings banks and loan servicers together with at-risk homeowners, was on target to help a half million Americans homeowners by Nov. 1.

But that is a small start on a huge problem at the heart of U.S. economic woes. Hoping for a Home "cash for clunkers" extension of the $8000 tax credit to first time home buyers could help move inventory as it is released on to the market.

Barr said that "even if HAMP is a total success, we should still expect millions of foreclosures" as administration and industry efforts continue to stabilize a crisis-stricken housing sector.

Barr said a strong housing market was "crucial" to a sustained U.S. economic recovery and described the slump in prices and demand in the housing sector as being "at the center of our financial crisis and economic downturn."

He noted that analysts anticipate more than six million Americans could lose their homes in the next three years as defaults continue to soar.

"Much more remains to be done and we will continue to work with other agencies, regulators and the private sector to reach as many families as possible," Barr said.

The Treasury report showed that some lenders had not helped any of their borrowers who were eligible for loan modifications. Others had helped varying numbers of those who were 60 or more days delinquent on their mortgages, ranging up to 100 percent for one bank that only had one eligible borrower.

The option ARMs in a higher price range are expected to start to show up if lenders can't refinance the borrowers.

Great Deals In Sonoma County!

2009-09-04T11:37:00.000-07:00

"I Found A Home That is 50% off its high from 3 years ago!"

If you have fallen for the fact that values 3-4 years ago were just and substantial.. forget it.

We have now learned that it is and never was the case. We thought it was then but have come to find out it was just oversold financed "kool-aid".

It makes for a great sales pitch to infuse perceived savings and value as we sort through the housing crisis wreckage but we all know now it is the elephant in the room we hate to admit.

I am often asked when and where price appreciation will come from and can not come up with a catalyst of new expendable revenue that will push prices up.

In fact since the banks have been slapped with free (or very low cost) tax payer money they are now in a hurry to pay it back before they get regulated to the point that greed just won't have the same lucrative appeal anymore. The waiving of the mark-to-market rule has helped the banks not have to classify junk assets as junk assets. We know they wouldn't do that just to appease their pockets or their share holders.. Right?

So.. where are prices going to end up now that the banks are lending based on affordability only (full doc loans) and a limiting 38% of debt to income level.. well all you have to do is look at what the median income levels are and work it backwards.

If median income in California is say 65,000 (2006 the good ole days) the math will show where prices will land.

65K /12 = 5416 a month x 38% = 2058 a month mortgage (payments, interest, taxes, insurance)

Lets assume absolutely no other debt and a loan of 5.5% = a price point of about 380K

If the consumer has debt all pricing is lowered. (and it assumes a borrower has about 70K down)

These are very liberal assumptions and should not be relied upon. (much like the lenders did when they had Mortgage Backed Securities rated AAA to sell sweetness)

We have faith that wall street will treat us to another round of "perceived value component" that may instill value and worth based on... well... time will tell...

Short Sales Information in Santa Rosa

2009-08-22T09:13:00.000-07:00

How are other real estate professionals practicing the art of short sales.

---Do they take the listing, submit the total package to the lender for approval with a signed contract and wait with 1 seller and 1 buyer?

---Do they submit the package, wait to hear the lender(s) will approve a certain amount or need a contract to continue, then find a buyer for the property?

---Or maybe they list the property, gather tons of offers and submit the best 3 to the bank like a REO-Foreclosure listing?

Those of us who are listing and selling short sales these days are always seeing new ways the banks want these short sales submitted... and we feeel we have to conform.

The seller's lender picks apart the terms of our contracts such as not allowing the seller to pay backed taxes, HOA fees and/or seller concessions ... we again conform. Then the lender decides they will not allow the REALTOR® to be paid the contracted commission. Once again we are asked to conform.

When did the lender/asset manager become our client? The last time I checked, the seller hired us, signed our listing agreement and it's the seller who signs a contract to sell. Then why are licensed professionals, allowing a 3^rd party lien holder the right to negotiate the terms of a listing agreement and contract to sell a property?

Is it becoming normal for a listing agent to work directly with the lender instead of the seller? I am recently finding more and more REALTORS® that have active short sale listings and without disclosing their plans, are collecting offers with no intention of allowing the seller to accept any of them. Instead the listing agents are sending all offers to the lender to choose and negotiate their favorites. Their plan is to have lots of buyers hanging on 45 to 90 days while the lender decides which offer to accept.

It is hard enough to do short sales these days without a commitment from the lender, but to not have any commitment between a buyer and seller can be fraught with frustration.

My Personal Opinion: I find it generally rewarding working with Santa Rosa Sonoma County Short Sales, it is usually a win, win, situation for those who are patient. But recent experience is finding many professionals conforming to the banks and what is easier, instead of protecting our clients.

Cash Back at Closing or Lower Listing Fee

2009-08-17T20:11:00.000-07:00

BUYER REBATE / BUYER INCENTIVES
I work for the consumer not the Broker -
"In Times Like These, hang on to your money"

Buyers do not pay for buyers agent services, the seller does.

Why You Need A Buyers Agent
My buyers receive all the benefits of working with a full-service Realtor® and receive a Buyer's Rebate to do whatever they want with.
#1 Why leave all of that money behind at the closing table?
Buying a home! Purchase your home using me as your Realtor®, and I will give you a commission rebate or refund from my commission.

How it works - Whether the property is a home listed in the MLS or new construction from a top builder, the seller typically offers to pay a commission to your buyer's agent. Existing homes listed on the MLS and most homes offered by nw home builders have a built-in "co-op" commission. This is the commission that the listing agent or builder offers to the Realtor who brings the buyer.
You will get a substantial rebate when you purchase your home with me as your buyer's agent. Not only can you get top service with no sales pressure, but you can save money in the form of a commission refund when you buy your next home. It is that simple! Why leave all of that money behind at the closing table?
Buying a new home from a home builder?

IMPORTANT information for new construction homes!

Don't enter a homebuilder's office without me as your agent or you may forfeit your eligibility for a Buyer Rebate. Don't make a BIG $ mistake!
Buying a resale or existing home?

1. First, contact me and let me know what you are looking for in your next home. I will have listings emailed to you or click on the "home search" link below to start your free MLS home search. Bookmark or add this page to the top of your "Favorites" for quick and easy access.

2. When you identify properties that you want to tour, please call me so that I can arrange a private showing of the homes. When you identify properties that you want to inspect, please list the MLS number and property address of the property that you wish to view. Please provide me with reasonable notice to make the showing appointments as it does take some time to set up a showing time that is agreeable to the seller with a little notice. If you need any assistance in searching for homes, please contact me.

What I provide:

- I will make an appointment with the homeowner(s) to tour the homes.

If you have an interest in making an offer on any home, I will write-up and present that contract offer with you.

- I will provide full service thru settlement which includes comparable search/analysis prior to making an offer, coordinate inspections, walk-thru, and attend settlement with you.
Please note that Craig Bassignani will need to show you the listings and present all contracts on your behalf if you want to take advantage of this cash rebate offer!
If the listing agent or an agent from another brokerage company shows you the property first then I may not be able to offer you a rebate for that particular property so please call me FIRST before you look at any homes. If you visit an open house or listing without me, it is important that you inform them that you are working with me and give them one of my business cards. For showing appointments or if you need assistance with your home search, please contact Craig Bassignani at 707-974-8970.
Rebate schedule: Sales Price Your Buyer's Rebate*
*Commission refunds or rebates assume that the listing broker (seller) is paying a 3% buyer's side brokerage commission. Rebates to be reduced or adjusted accordingly if seller pays less commission. Buyer(s) should be pre-approved by a lender with a pre-approval letter prior to viewing homes (Begin Approval Process). Buyer will need to have a signed buyer broker agreement for our rebates to apply. Buyer to notify lender about broker rebate at loan application. All parties involved in the transaction must be informed of the rebate.

If you are interested in our new home program, Contact Us Here.
Use the money to buy new furniture, take a vacation, pay your closing costs, or simply understand that you actually bought the house for less than you otherwise could have when we submit the offer for you. In the case of a bidding war, you get a real advantage over what you could otherwise afford to bid if you use some other real estate brokerage to represent you.
Please note that Craig Bassignani will need to help you purchase or list your home on your behalf if you want to take advantage of our cash back offer!

Other Helpful Links to Sonoma County Real Estate

Buying or Selling? Save Money Here

Sonoma County Real Estate

Santa Rosa Real Estate

Santa Rosa Ca Short Sale Options

For showing appointments or if you need assistance with your real estate goals, contact Craig Bassignani at 707-974-8970.

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.

Share this with friends and family!
“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
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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