FAIR OAKS, CA. The place to play!

Fair Oaks and Carmichael home sales

2009-08-26T17:44:00.000-07:00

Data through June 2009, released by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index improved in the second quarter of 2009. The Home Price Index- which covers all U.S. divisions- recorded a 14.9% decline in the 2nd quarter of 2009 versus the 2nd quarter of 2008. While still a substantial negative annual rate of return, this is an improvement over the record decline of 19.1% reported in the 1st quarter of the year.

To put this into perspective it is the first quarterly gain in 3 years.

Fair Oaks, Carmichael and the Health Reform debate

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

Due to medical expenses I came close to serous financial trouble in 2008. Don't get me wrong, I was insured with a very good policy. However, between the insurance costs, the co-pays and drugs I put out almost $20,000 in a year that was, like most of yours, not the best. As well, my physical output was greatly limited due to my medical situation. As a result last year was a difficult year in many ways.

A lot of you may not have been in this position and I certainly hope that you will not be. Especially those of you with a family to provide for.

As a result I am posting the following article by David Axelrod, senior advisor to the President of the United States. I suggest that you read it because it clarifies some of the issues that are being bandied about by both the supportive and non-supportive sides. Whether you are for reform or not, get informed!

8 ways reform provides security and stability to those with or without coverage, 8 common myths about reform and 8 reasons we need health insurance reform now.

8 ways reform provides security and stability to those with or without coverage

1.) Ends Discrimination for Pre-Existing Conditions: Insurance companies will be prohibited from refusing you coverage because of your medical history.
2.) Ends Exorbitant Out-of-Pocket Expenses, Deductibles or Co-Pays: Insurance companies will have to abide by yearly caps on how much they can charge for out-of-pocket expenses.
3.) Ends Cost-Sharing for Preventive Care: Insurance companies must fully cover, without charge, regular checkups and tests that help you prevent illness, such as mammograms or eye and foot exams for diabetics.
4.) Ends Dropping of Coverage for Seriously Ill: Insurance companies will be prohibited from dropping or watering down insurance coverage for those who become seriously ill.
5.) Ends Gender Discrimination: Insurance companies will be prohibited from charging you more because of your gender.
6.) Ends Annual or Lifetime Caps on Coverage: Insurance companies will be prevented from placing annual or lifetime caps on the coverage you receive.
7.) Extends Coverage for Young Adults: Children would continue to be eligible for family coverage through the age of 26.
8.) Guarantees Insurance Renewal: Insurance companies will be required to renew any policy as long as the policyholder pays their premium in full. Insurance companies won't be allowed to refuse renewal because someone became sick.

8 common myths about health insurance reform

1.) Reform will stop "rationing" - not increase it: It’s a myth that reform will mean a "government takeover" of health care or lead to "rationing." To the contrary, reform will forbid many forms of rationing that are currently being used by insurance companies.
2.) We can’t afford reform: It's the status quo we can't afford. It’s a myth that reform will bust the budget. To the contrary, the President has identified ways to pay for the vast majority of the up-front costs by cutting waste, fraud, and abuse within existing government health programs; ending big subsidies to insurance companies; and increasing efficiency with such steps as coordinating care and streamlining paperwork. In the long term, reform can help bring down costs that will otherwise lead to a fiscal crisis.
3.) Reform would encourage "euthanasia": It does not. It’s a malicious myth that reform would encourage or even require euthanasia for seniors. For seniors who want to consult with their family and physicians about end-of life decisions, reform will help to cover these voluntary, private consultations for those who want help with these personal and difficult family decisions.
4.) Vets' health care is safe and sound: It’s a myth that health insurance reform will affect veterans' access to the care they get now. To the contrary, the President's budget significantly expands coverage under the VA, extending care to 500,000 more veterans who were previously excluded. The VA Healthcare system will continue to be available for all eligible veterans.
5.) Reform will benefit small business - not burden it: It’s a myth that health insurance reform will hurt small businesses. To the contrary, reform will ease the burdens on small businesses, provide tax credits to help them pay for employee coverage and help level the playing field with big firms who pay much less to cover their employees on average.
6.) Your Medicare is safe, and stronger with reform: It’s myth that Health Insurance Reform would be financed by cutting Medicare benefits. To the contrary, reform will improve the long-term financial health of Medicare, ensure better coordination, eliminate waste and unnecessary subsidies to insurance companies, and help to close the Medicare "doughnut" hole to make prescription drugs more affordable for seniors.
7.) You can keep your own insurance: It’s myth that reform will force you out of your current insurance plan or force you to change doctors. To the contrary, reform will expand your choices, not eliminate them.
8.) No, government will not do anything with your bank account: It is an absurd myth that government will be in charge of your bank accounts. Health insurance reform will simplify administration, making it easier and more convenient for you to pay bills in a method that you choose. Just like paying a phone bill or a utility bill, you can pay by traditional check, or by a direct electronic payment. And forms will be standardized so they will be easier to understand. The choice is up to you – and the same rules of privacy will apply as they do for all other electronic payments that people make.

8 Reasons We Need Health Insurance Reform Now

1.) Coverage Denied to Millions: A recent national survey estimated that 12.6 million non-elderly adults – 36 percent of those who tried to purchase health insurance directly from an insurance company in the individual insurance market – were in fact discriminated against because of a pre-existing condition in the previous three years or dropped from coverage when they became seriously ill. Learn more: http://www.healthreform.gov/reports/denied_coverage/index.html
2.) Less Care for More Costs: With each passing year, Americans are paying more for health care coverage. Employer-sponsored health insurance premiums have nearly doubled since 2000, a rate three times faster than wages. In 2008, the average premium for a family plan purchased through an employer was $12,680, nearly the annual earnings of a full-time minimum wage job. Americans pay more than ever for health insurance, but get less coverage. Learn more: http://www.healthreform.gov/reports/hiddencosts/index.html
3.) Roadblocks to Care for Women: Women’s reproductive health requires more regular contact with health care providers, including yearly pap smears, mammograms, and obstetric care. Women are also more likely to report fair or poor health than men (9.5% versus 9.0%). While rates of chronic conditions such as diabetes and high blood pressure are similar to men, women are twice as likely to suffer from headaches and are more likely to experience joint, back or neck pain. These chronic conditions often require regular and frequent treatment and follow-up care. Learn more: http://www.healthreform.gov/reports/women/index.html
4.) Hard Times in the Heartland: Throughout rural America, there are nearly 50 million people who face challenges in accessing health care. The past several decades have consistently shown higher rates of poverty, mortality, uninsurance, and limited access to a primary health care provider in rural areas. With the recent economic downturn, there is potential for an increase in many of the health disparities and access concerns that are already elevated in rural communities. Learn more: http://www.healthreform.gov/reports/hardtimes
5.) Small Businesses Struggle to Provide Health Coverage: Nearly one-third of the uninsured – 13 million people – are employees of firms with less than 100 workers. From 2000 to 2007, the proportion of non-elderly Americans covered by employer-based health insurance fell from 66% to 61%. Much of this decline stems from small business. The percentage of small businesses offering coverage dropped from 68% to 59%, while large firms held stable at 99%. About a third of such workers in firms with fewer than 50 employees obtain insurance through a spouse. Learn more: http://www.healthreform.gov/reports/helpbottomline
6.) The Tragedies are Personal: Half of all personal bankruptcies are at least partly the result of medical expenses. The typical elderly couple may have to save nearly $300,000 to pay for health costs not covered by Medicare alone. Learn more: http://www.healthreform.gov/reports/inaction
7.) Diminishing Access to Care: From 2000 to 2007, the proportion of non-elderly Americans covered by employer-based health insurance fell from 66% to 61%. An estimated 87 million people - one in every three Americans under the age of 65 - were uninsured at some point in 2007 and 2008. More than 80% of the uninsured are in working families. Learn more: http://www.healthreform.gov/reports/inaction/diminishing/index.html
8.) The Trends are Troubling: Without reform, health care costs will continue to skyrocket unabated, putting unbearable strain on families, businesses, and state and federal government budgets. Perhaps the most visible sign of the need for health care reform is the 46 million Americans currently without health insurance - projections suggest that this number will rise to about 72 million in 2040 in the absence of reform. Learn more: http://www.WhiteHouse.gov/assets/documents/CEA_Health_Care_Report.pdf

One thing that has not had a lot of coverage. Yes, America has some of the best facilities in the world! And yes, it is rated very poorly as a "system". One of the primary reasons is that administrative costs are in the 40% range when any good business model should have administrative costs of around 12%. Have you ever received a medical bill that made no sense? Your money is feeding a system that spends almost as much money on administrative costs as it does on your actual health care. So..... you answer the question. Do we need reform?

Fair Oaks, Carmichael and the economy. Is the recession over?

2009-08-17T08:06:00.000-07:00

Economist Dennis Gartman told subscribers of his newsletter in the fall of 2007 that the U.S. was entering a recession, the Dow was at 13,500, and the official government call wouldn't come for another full year.

Once again, he's ahead of officials and forecasters. According to Mr. Gartman, the U.S. recession that started in December 2007 is done. "We saw it happen two weeks ago -- it's over," he said in a recent interview.

Are you ahead of the curve? What information are you basing your outlook on? NYU economics professor Nouriel Roubini, known for his prescient predictions of the worldwide downturn, says the U.S. recession will end later this year. Treasury Secretary Timothy Geithner said last weekend that the recession is easing. And President Obama told Univision last week, "We maybe are beginning to see the end of the recession.

If you are planning to invest in housing you will know that prices are stabilizing. This is a fairly good indicator of market conditions. Especially after the volatile last two years. However there are still a number of bank owned properties selling for good prices. Especially in areas like Oak Park where properties are selling for less than $100K. Carmichael has 3/2 homes of approximately 1000 square feet selling for less than $200K. Even the old Fair Oaks village has a 1/4 acre property for sale at less than $200K. All of these can work as investments. Some are great if you have an eye to living closer to downtown.

Interest rates are still very affordable. However, when the market goes up, that will change!

Fair Oaks and Carmichael, housing and the economy

2009-08-06T08:29:00.000-07:00

The National Association of Realtors reports that pending sales of existing homes increased for the fifth consecutive month in June, driven by reduced prices, favorable borrowing costs and a federal tax credit for first-time buyers. The June increase of 3.6 percent, coming off a 0.8-percent gain in May, marks the longest streak of month-to-month gains in six years. In similar news, the “Housing Price Index” rose for the first time in three years nationwide.

The Associated Press is also reporting that foreclosures are stabilizing across the county, and that President Obama’s Modification Program has modified loans for approx. 9% of those in foreclosure.

The FHA's third-biggest lender, Taylor, Bean and Whitaker Mortgage Corp., has been dropped from the agency's loan program. Experts say TBW could fold as a result; and with less competition in the industry, mortgage rates could rise. "It's just a question of demand and supply," stated Equity Now Inc. President Michael Moskowitz. "If Taylor Bean goes down, it's a pretty big deal." Another excuse for Wells Fargo and B of A to raise pricing on FHA loans…..

Credit scores are back in the news. Sierra Pacific (who is one of the larger lenders out there) recently announced that they were raising their minimum credit score requirements to 640 on FHA loans. That is quite a problem for brokers who do FHA business. With the horrendous costs that FNMA and FHLMC now charge for any credit score below 740, every Realtor in town should know a good quality “credit assist” company. Your buyers with credit challenges can spend a few hundred dollars now and save thousands of dollars at the closing table. The math is pretty easy!

Fair Oaks, Carmichael home prices stabilizing

2009-07-31T07:58:00.000-07:00

After three years steadily declining home prices appear to be at an end. Thirteen major cities across the USA have shown moderate price increases and a survey of 20 major cities show home prices to be flat rather than depressed or down. If you are a home owner this is good news. If you are buying it means that you should be looking at buying sooner rather than later!

Reports show that sales of existing homes nationwide rose last month for the third consecutive month, while sales of new homes increased in June by the largest percentage in eight years, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) and the U.S. Commerce Dept., respectively. The median price in California’s housing market appears to be stabilizing. June marked the fourth consecutive month of rising home prices and the second largest gain on record for the month of June, based on statistics dating back to 1979. The year-to-year decline in June also was the smallest in the past 16 months.

The S&P/Case-Shiller price index for 20 cities showed a half-percent gain when May was compared with April. It was the first month-over-month increase in the index in 34 months. “It is very possible that years from now we will say that April 2009 was the trough in home prices,” said Maureen Maitland, vice president for index services at Standard & Poor’s. One explanation for the increase in median prices is the $8,000 federal tax credit, which expires in December.

Fair Oaks and the federal reserve in 2009

2009-06-25T20:10:00.000-07:00

Here is the latest press release from the FED. It boils downt to this: INTEREST RATES WILL REMAIN AS THEY ARE FOR THE TIME BEING!

Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales. Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.

The prices of energy and other commodities have risen of late. However, substantial resource slack is likely to dampen cost pressures, and the Committee expects that inflation will remain subdued for some time.
In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. As previously announced, to provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn

Fair Oaks and Carmichael and the State Tax Credit

2009-06-18T19:59:00.000-07:00

First-time home buyers wanting to take advantage of the state’s $10,000 tax credit may have less time than originally expected. California set aside $100 million to help home buyers purchase newly built homes, hoping to jump start the residential-construction market. According to state officials, the tactic has worked well and is helping to entice home buyers into the market. However, there only is approximately 20 percent of the program’s funding remaining.

The California state legislature is considering adding another $200 million to the program. However, securing approval may be difficult due to the state’s estimated $24 billion budget deficit. A bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate.

This from the California Association of Realtors, so TAKE ADVANTAGE WHILE YOU CAN. ESPECIALLY YOU FIRST TIME BUYERS!

Fair Oaks interest rates are on the rise!

2009-06-06T18:52:00.001-07:00

Straight from the Wall Street Journal:

Rates on conforming 30-year loans jumped dramatically in just a few days, ending the week at an average of 5.27% according to Bankrate.com. That's still OK by historic standards, but it's a jump from the levels seen just a few weeks ago, when you could get loans at 4.75% or below.
The underlying cause isn't hard to find. Rising government debts, and burgeoning hopes of an economic recovery, are pushing up long-term interest rates on government debt. The yield on the 10-Year Treasury, which was barely 2% near the end of last year, surged to 3.67% late last week before settling back slightly. And that, in turn, pushes up rates on other long-term loans.

Finding your home in FAIR OAKS!

2009-06-06T18:41:00.001-07:00

Yup, the government is back at it. They are going to help you get into a home and get the economy turned around doing it! Here is a synopsis of the news that came in at the end of the week:

Last Friday, the Secretary of HUD announced new federal guidelines which allow First-Time Homebuyers to monetize their $8,000 Tax Credit upfront, for use toward their down payment or closing costs, rather than after close of escrow. No one really knows how this is going to work yet – federal lending guidelines usually take a month to manifest into phone numbers you can call to find out about them. But it looks like state Housing Finance Agencies and HUD-approved nonprofit organizations will be involved, and will provide the upfront funds to borrowers (for a small fee, of course), which they’ll be reimbursed at tax time next year. On careful reading of the few details on this program, it’s clear that it does not, reduce the amount of down payment funds that need to be deposited by the buyer to get an FHA loan. The $8,000 credit cannot, under current law, be used to meet the minimum 3.5% down payment requirement (although gifts from relatives can). The upfront $8K is available for buyers to use as extra down payment money (to buy more or lower monthly payments), to pay discount points (reducing their interest rates) or to defray closing costs.

So look at your options. Prices are still very good, and interest rates (at least for the time being) like like they will continue to rise. So make a decision and see if you can lock into a good rate and buy that home of your dreams

Fair Oaks and GMAC

2009-05-28T07:35:00.000-07:00

Well, it's been a while. As with everyone these days there have been a lot of changes and change takes up time, energy and a wealth of resources. As a result we all avoid change. Even though change is GOOD! Change engenders growth and growth keeps us interested and alive.

How does GMAC figure in all this you may ask? Well let's see. Did you ever think that General Motors would not be a part of the American make-up? You probably never even thought about it, but now you are. The reason that you are is that this is one of many changes this country is going through affecting everyone including ourselves. Indirectly you are feeling/seeing it in many ways. Economically you have been affected and will continue to be affected for at lease several more years. It is also causing many international shifts that are causing a ripple effect in the national economy and American make up. Have you read about the city of Detroit lately? Once a paradigm of American strength it is now a wilderness of vacant buildings and lost labour opportunities. So what America has lost someone else has gained. Korea? China?

As a country we continue to ship jobs overseas and it is not just through Government action. It is caused by everyone wanting cheap goods and manufacturers taking their business to countries like Korea and China.

Todays interest rates are a response to the release of the latest Treasury Auction and are a direct result of all of this. No buyers for the Auction meant that interest rates rose 2% in one day!!! So here we are once again, interest rates increased due to a number of national and international reasons. Some of the reasons have undoubtedly been affected by elements of the American economy. Such as the likely bankruptcy of GMAC and the expense the Government is going through to deal with all of our Economic upheaval.

So if you are re-financing your home, sit tight for a bit and see if the rates settle down over the next week or two.

Personally I am changing Real Estate Agencies this week to 'Area Pro Realty'. I thank you for your past patronage and look forward to your business under this new sign!

Fair Oaks and the Fed

2009-03-18T16:55:00.000-07:00

Yes folks, it has been a while!!

Here is the latest from the Fed and Mr. Bernanke (from an article on CNN Money):

The news of the Fed's intention to purchase 300 billion dollars in treasurys over the next 6 months has created a huge rally in the bond market. Simply put, rates on the 10 year bond dropped from 2.94 down to 2.51, almost a full half point. This drop is translating into huge rate reductions on mortgage backed securities.
The Fed is demonstrating a clear signal that they want to improve housing and by purchasing treasurys, they are driving down interest rates.
The Fed has not specifically set a target rate that they are trying to achieve for mortgage loans however speculation is that they would like to see the 30 year fixed drop to 4.5%.
Only time will tell whether mortgage rates will drop that low, however enjoy the recent reduction and get your fence sitters to take action.

This is a response to market conditions as well as the drop of the American dollar agains other currencies. Let's see what this does to the market!

Fair Oaks, Fannie Mae and the new Year!

2009-01-12T09:47:00.000-08:00

Happy New Year everyone. Let it be a good year financially, physically and mentally!

Late last year this note came out about Fannie Mae mortgages:

"Fannie Mae recently announced the Streamlined Modification Program (SMP) is now available to Fannie Mae servicers and borrowers as an option to help prevent foreclosures. The SMP enables services to change the terms of a loan to reduce a borrower's monthly mortgage payment, including taxes, insurance, and HOA dues, to an amount equal to 38 percent of the borrower's gross monthly income. The changes in terms may include one or more of the following: Adding the accrued interest, escrow advances and costs to the principal balance of the loan, if allowed by state law; extending the length of the mortgage loan as appropriate; reducing the mortgage loan interest rate; forbearing on a portion of the principal, which will require the borrower to make a balloon payment when the loan matures, is paid off, or is refinanced. Servicers will be sending modification solicitation letters beginning this month to borrowers believed to be eligible for the program. "

If you are one of the people that will be affected, call your lenders if you have not heard from them.

Merry Christmas Fair Oaks!

2008-12-25T15:46:00.000-08:00

To all of you a very Merry Christmas. May the season bring family and happiness to everyone. Let this be the prelude to a much better year to come!

Peter

Fair Oaks for Christmas -glad tidings- and a Fine New Year!

2008-12-18T11:26:00.000-08:00

It has been a while since my last posting. As with some of you, my parents are aging and have immediate needs from their 'kids'. My mother just had a fairly serious operation on an anurism of the aeorta. I took the opertunity to go and spend some time with my folks up in Vancouver (Canada). It was nice to be there for the operation and some of the recovery and the timing so close to Christmas helped as well.

It is good to connect with family around holidays. I noticed that a lot of our conversation centered around memories of the past and invariably the personal differences of those memories. My folks immigrated from Holland in the early sixties with us four kids in tow. I can only imagine what that experience was for them. My memories of excitement must have been their memories of worry and trying times. It is interesting how the memories balance to a more even keel over time with a glow that is reflective of the outcome. Maybe that is why we gather to celebrate. We need to look at life from a hopeful and positive perspective and isn't that what this time of year is all about?

MERRY CHRISTMAS TO ALL AND HEALTH AND HAPPINESS FOR THE COMING YEAR!!

Along with that let me give you some good news!

Troubled homeowners get a break from IRS

Published: Wednesday, Dec. 17, 2008 Page 9B Sac Bee

Homeowners unable to refinance or sell their homes because of federal tax liens will find new flexibility from the Internal Revenue Service.
The IRS is concerned that its 1 million liens attached to properties may be contributing to the nation's foreclosure crisis. On Tuesday, it announced a policy allowing homeowners to request that federal tax liens take a secondary position behind that of their lenders.
A second policy allows homeowners attempting short sales – in which the lender agrees to accept less than owed – to ask the IRS to discharge their liens.
While both procedures typically take 30 days to process, the IRS promised a speedier turnaround in light of the nation's economic downturn.
Federal tax liens are imposed on a home when its owner fails to pay federal taxes. They tell other creditors that the government has a claim on the property. But the liens often prevent owners from refinancing or selling.Both requests require a typed letter and documentation. Information on how to prepare requests and where to send them is at the government Web site ,www.IRS.gov

Happy Thanksgiving Fair Oaks!

2008-11-28T11:12:00.000-08:00

Vince Lombardi once stated, “Winning is not a sometime thing, it’s an all-time thing. You don’t win once in a while, you don’t do things right once in a while, you do them right all of the time. Winning is a habit. Unfortunately, so is losing.” The timing for the applicability of this quote couldn’t be any greater than the present. The importance of understanding and incorporating the best practices required to “win” into and with your culture and daily business routines is not just a matter of winning…it’s now a matter of survival.

Having been a realtor now in good time and bad I understand what this great coach was saying. I will follow it with another great quote from Larry Bird:

"A winner is someone who recognizes his God-given talents, works his tail off to develop them into skills, and uses these skills to accomplish his goals."

What these quotes remind me of is the fact that our daily decisions are an extension of where our minds are. If we are in a positive space we will move forward in a positive vane. If we are in a negative space we are likely to keep moving towards negative goals.

Certainly our daily news is a reflection of these patterns which have now taken on a societal momentum. Sadly enough the existing government is missing the momentum of change and not stepping up to the plate to leave somewhat of a legacy. Our $700 billion bail-out is missing the boat on a number of levels. The money is not going where it is needed the most (on street level-you folks affected by this crisis) and the banks that are getting it are not really being made accountable. One only has to look at what the Brits exacted from their institutions to see how it could be done. Sad to say, the results will show this on the long term as our Economies improve. Sadder yet, it really means our economy now is still struggling even with these incredible cash infusions. The longer it struggles the harder it will be to come out of it and the greater the number of people and institutions will be affected/hurt.

This takes me to back to the two earlier quotes. Our people in Washington need to start meeting in a bi-partisan fashion now to get the year 2009 started. In a POSITIVE direction. Make the decisions that are painful in a fully negotiated fashion. Get the automotive producing states to understand and co-operate in a fashion that will get the industry back on its feet. IN WHATEVER FORM THAT WILL CREATE A LONG LASTING STRUCTURE. We have gone through similar tough times in the resource sectors; mining and forestry as well as fisheries and farming. All have gone through painful times. Are they that isolated that we cannot learn from them? Look at the deregulation of the airlines and all the issues that brought about. Because State representatives get bound to these local issues we need to be able to start looking beyond our own self interests in order to have and economy and community/society that functions in its entirety.

To some extent this is a cyclical path we go through as we 'progress' and develop new needs. Our strength is our ability to adapt and the ability to adapt comes from hope, ingenuity and forward and positive thinking. Adaptability stops when these are lost and when there is no positive energy to move forward. I think that when we look back in history it is at these junctures that wars have begun. When frustration replaces hope societies strike back. The problem being that even from this negative exercise we grow. Wouldn't it be wiser to find a way back through a mediative working of minds? What would it look like if we put Henry Paulson in a pubic forum with some progressive thinkers not associated with Wall street, add an automotive exec or two, members of the new government and give them 3 days. Let them hash out an overall plan that saw the remainder of the $700 billion put out there in places that the audience could actually applaud? Now THAT would strike a positive note. Give the power brokers some accountability that was INCLUSIVE?!! Actually give people on the street a feeling of empowerment? What a novel concept. You would certainly create a dialogue and program that would move away from the problems of leaving the money in the hands of too few people. And yes you would need oversight. And isn't that what you want when the government is involved at this level and spending this much of your money?

Having said all that I noticed that we have had two very quiet days where people were spending time with family. I hope it was regenerative and positive for everyone!!

Fair Oaks and Interest rates

2008-11-24T09:52:00.000-08:00

A great Monday to all! Looking for good news? As expected, mortgage rates continue to decline, even with or-especially because of, the never ending turmoil of the economy. With a steady, but slow, drop in interest rates most of the week, the 30 yr fixed rate ended this week at 5.75%, down as much as a quarter percent depending on the lender. On the national level, 30 yr fixed interest rates are averaging 6.04%. It is the third straight week that rates have dropped and the lowest rates have been in a month.

This has been anticipated as it is part of a regular pattern. When the feds reduce short term interest rates mortgage rates rise. Some time later mortgage rates come back down. At the heart of any (Fed) interest rate cut is the relationship between stocks and bonds. Stocks and bonds compete for the same investment dollar on a daily basis. When the Federal Reserve cuts interest rates in an effort to stimulate the economy, the reduction in rates often causes a stock market rally. When the market rallies (stock prices move up) the money to invest in stocks usually comes from the selling of mortgage-backed securities. Unfortunately, when Investors put their money into the stock market rally, the bond market suffers. The bond market then has to increase their yields to Investors in order to compete for the same money… and this causes mortgage interest rates to go up, not down.

Hope you all had a great week-end: Happy thanksgiving!

Fair Oaks, Fannie Me, and Freddie Mac News!

2008-11-21T10:53:00.000-08:00

The following is a letter issued by Fannie Mae and Freddie Mac today, November 21. It verifies that both groups are halting ALL foreclosure sales until January 9, 2009. If you are affected by this read the following article. If you have any questions call your loan servicer and/or your attorney. If you have any other questions feel free to call me and I'll see if I can help. (916) 965-7858.

Fannie Mae is committed to assisting homeowners impacted by the national housing crisis and has taken many steps in recent months aimed at keeping families in their homes. In connection with the streamlined modification program announced jointly by the Federal Housing Finance Agency (FHFA), Freddie Mac, and Fannie Mae on November 11, 2008, Fannie Mae is instituting a halt to all foreclosure sales on occupied single-family properties as well as to the completion of evictions from occupied singlefamily properties scheduled to occur from November 26, 2008 through January 9, 2009.
The temporary halt on foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes while Fannie Mae works with FHFA to implement the streamlined modification program scheduled to launch December 15, 2008. The foreclosure halt will apply to all portfolio mortgages and all MBS pool mortgages owned or guaranteed by Fannie Mae and to foreclosures of homes that are already in process with foreclosure sale dates scheduled during the halt period. Servicers and foreclosure attorneys (or trustees) must institute the halt on foreclosures for eligible homeowners no later than November 26, 2008.

Eligibility – Foreclosures.

The temporary foreclosure halt applies to single-family properties which have or will have a foreclosure sale date scheduled to begin on or after November 26, 2008 and through January 9, 2009 and where the property is occupied. If the servicer, attorney, or trustee has knowledge that the property is vacant, the foreclosure sale should continue as scheduled. If the servicer, attorney, or trustee is unsure whether a property is occupied, the servicer, attorney, or trustee should assume that the property is occupied.

During this period servicers are expected to continue working with borrowers to resolve the delinquency using Fannie Mae’s available foreclosure prevention options. To facilitate borrower ommunication with servicers, servicers must instruct foreclosure attorneys and trustees to send a letter to each impacted borrower urging the borrower to contact his or her servicer. This initiative does not affect mortgage loans that have not yet been referred to foreclosure. Servicers and foreclosure attorneys (or trustees) should follow the foreclosure policy guidance contained in the Fannie Mae Servicing Guide for all loans previously referred and for all new referrals as long as such actions do not result in foreclosure sales being scheduled during the halt period.

Eligibility – Evictions

Fannie Mae is also implementing a temporary halt on the completion of eviction lockouts of occupied properties beginning November 26, 2008 and ending on January 9, 2009. This initiative does not affect foreclosed properties where eviction actions have not been initiated. Fannie Mae will continue to initiate the eviction process on acquired properties during the period but these actions will not result in lockouts being scheduled on occupied single-family properties during the halt period. Fannie Mae will provide separate guidance to the eviction attorneys to implement the halt of eviction lockouts during the halt period.

Delinquency Status Reporting and Tracking Servicers should continue to report the delinquency status” and “reason for delinquency” codes and delinquency code “effective dates” when ransmitting monthly delinquency status information as described in the Servicing Guide,

Part VII, Chapter 6: Delinquency Status Reporting.

Each servicer must maintain a schedule of all foreclosure sales affected by the halt. This schedule should include the Fannie Mae loan number and the date on which the sale was scheduled to occur. Each servicer should provide the schedule each month for the months of November 2008 through January 2009. Schedules should be submitted within 10 business days after the end of each month and the schedule should be submitted to Fannie Mae via e-mail to the following address: foreclosure_halt@fanniemae.com.

Servicers should contact the National Servicing Organization’s Servicing Solutions Center at 1-888-326-6438 (option 2 – Servicing, then option 3 – General Servicing) if they have questions about Lender Letter 04-08.

Michael A. Quinn
Senior Vice President
Single-Family Risk Officer

Fair Oaks, Sacramento and Flood Insurance

2008-11-19T08:48:00.000-08:00

On December 8 this year, FEMA will issue revised Flood Insurance Rate Maps (FIRMs) for the CITY OF SACRAMENTO and SACRAMENTO COUNTY.

These maps show areas that are considered to be in a flood plain, and therefore may require homeowners to obtain flood insurance. Flood zone disclosure is a statutory requirement in California real estate transactions.

Flood insurance is generally required for federally-backed mortgages on properties within a "Special Flood Hazard Area", also called a "100-year flood" zone. The new FEMA maps will change flood zones in the Sacramento area.

Approximately 28,200 parcels within the incorporated City of Sacramento that were not formerly in a 100-year flood zone, will be included within this high-risk zone after the revised maps become effective. In the unincorporated area of Sacramento County, approximately 560 parcels will be affected in this way. The area most affected with these changes is Natomas. These changes have come about with the review of the levees since Huricane Katrina.

Additional information about Sacramento area flood zones, levees, insurance, and preparedness is available on the City of Sacramento website -- click the "Be Flood Ready" button at the following address:http://www.cityofsacramento.org/utilities/ more information can be had at

http://www.fema.gov/hazard/flood/index.shtm.

Fair Oaks and the housing market

2008-11-18T08:46:00.001-08:00

Here is some good news!

Real Estate Outlook: Housing in Recovery
by Kenneth R. Harney
With all the turbulence and losses in stocks and bad economic news in the headlines lately, you can easily lose perspective on what's really going on in the real estate sector.
For example, new mortgage applications increased last week by 12 percent, according to the Mortgage Bankers Association. Applications from people looking to buy houses with FHA loans were up by 15.3 percent, while applications from purchasers seeking conventional mortgages rose by six and a half percent.
How could that be, with all the grim economic news? Well, remember that there is a huge pent-up demand simmering away out there for housing -- especially from first-time buyers who want to scoop up low-priced deals.
When fixed interest rates drop -- and last week they were down by a quarter of a percentage point -- those buyers start doing the math and getting into the market with offers.
Fixed thirty year rates fell from six and a half percent to 6.24 percent during the week. Fifteen year rates broke below six percent to 5.9 percent, down from 6.14 percent.
Another piece of positive news you may not have noticed: Pending home sales were higher than year-earlier levels for the second straight month -- 1.6 percent higher than September 2007 .
Although pending sales contracts were down slightly for the month, in the western states they wee up by 3.7 percent, and now stand at an extraordinary 39.7 percent higher than they were at the same time in 2007.
At the National Association of Realtors' convention in Orlando, chief economist Lawrence Yun, warned the delegates not to expect a housing recovery overnight, certainly not with unemployment on the rise. But he projected a slow, steady, multi-year upward trend, with 5.02 million total sales this year, 5.3 million for 2009, and 5.6 million for 2010.
Already sales are up significantly in major markets in many parts of the U.S. Yun specifically mentioned the west coast of Florida, the Phoenix area, Virginia, Long Island New York, Kansas City, Minnesota and Idaho.
So here's the key point to keep in mind as you try to make sense of the headlines: The stock market is NOT the housing market. It's on a whole different set of tracks. And it's been in a highly volatile state for more than a month.
Housing, on the other hand, has already endured its painful correction for two and a half years … is now pretty much stabilized … and is slowing moving toward its cyclical recovery.

Fair Oaks, more information to mortgage assistance

2008-11-17T12:57:00.000-08:00

Here is a chart prepared by the California Association of Realtors chart that will help you sort out who is doing what. Have a look at it and see if it will help.

Fair Oaks, Fannie Mae, Freddie Mac and Foreclosures

2008-11-17T08:52:00.000-08:00

After the above chart, if you are still confused by the 700 billion dollar bail-out and how it may affect you, you may benefit from this article.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aXh_NhG7OLoY&refer=home

I guess the trick to all of it is to find out if your lending institution is one of the ones covered by the Fannie/Freddie program. When you start calling have patience and be polite. Remember, these are people that are inundated with people's financial problems. As my former wife would like to say "there are two people interested in your problem, and one of them is losing interest real quickly". I better qualify that, she worked for the airlines in the lost luggage department!

There are all sorts of scams happening out there. Whatever you do, do not give money up front to anyone. If a third party offers you any services to deal with your mortgage debt check them out carefully.

Fair Oaks in Boom and Bust times

2008-11-14T10:03:00.000-08:00

Here is an excerpt from an article in RISMEDIA (http://rismedia.com/wp/2008-11-13/planning-for-the-coming-boom/), a real estate news outlet. It discusses the inevitability of the Boom which will follow the present "Recession".

"It’s different this time: Sure it is, and the check’s in the mail and you’re my one and only. Don’t believe what you hear from the economic pundits. Economics was invented to make astrology look good. In the late 50s and early 60s we had an economic boom partly based on new technologies like transistors. The “nifty fifty” stocks reigned supreme and surely it was different this time. Then along came the early 70s and the Arab oil embargo. We were going to run out of oil in eight years, they said … it was different this time. Then we had the inflation and high interest rates of the late 80s, stock market crash of 1987, the 90s Internet boom, technology meltdown of 2000 followed by 9/11 and now the sub-prime crisis. Every downturn was followed by an economic boom and vice versa. It’s never “different this time” and this is no exception."
One of the issues in times like this is that our actions logically follow the curve. As a result the curve has a self-fulfilling momentum. Hence the severity of the present economic 'crisis' will continue to escalate until some of the persistent doom and gloom settles. When some sense of normalcy returns to the stock market and the economy in general the press will find better or different things to talk about. At that point everyone will be able to take stock of their situation and start making decisions that are not based on fear.

Right now people are assessing their employment situtation to make sure that their income is secure. As well, everyone is limiting their spending especially on big ticket items and this is wise. This will hurt the auto manufacturers and the appliance companies and the people and companies that sell them. And to be sure, like the bankers, these companies could have and should have prepared for this. It is interesting to note that the two auto companies that are in trouble have spent little time or money developing hybrid vehicles. As well, companies making energy efficient appliances should and will benefit from a time like this.

Best of all, those of you that CAN afford to buy these items at this time stand to benefit from some excellent prices and should go out and buy them! This will not only shore up the economic data that feeds the press, it will stimulate a part of the economy that badly needs it. It will stop people from being laid off and give people an income to spread to the other parts of the community that are hurting. It will show a level of optimism that is missing. A level of optimism that is required to change 'the curve'. This is not to encourage frivolous spending! This is merely meant to show that the protectionism that follows this economy will only further the downturn. Everyone has a duty to look after themselves. Then look beyond your own front door step to see what you can do for your neighbor and yourself.

Make no mistake you will pay for a recession one way or another! If the economy gets to a state similar to the 30's what will it take to turn the corner? Look at the government projects undertaken during those years to put people to work and put money into the economy. Look at the recent bank bailout. All of these costs will be paid by you the taxpayer and will get more costly in the long run. Not to mention the social issues of the thirties. If that level of poverty is perpetuated today you can imagine the increase in crime and violence.

Anyway, not to sound like a lecture, but once we have established our comfort level we should look at what we need and get it. It's bound to be on sale!

Fair Oaks and the election results.

2008-11-05T11:54:00.001-08:00

Well there you have it; two years on and a decision has finally been made! Congratulations America. You have spoken loud and clear that you want change and change we will have.

It remains to be seen how successful change can be embraced by Washington. However, I believe that there is enough will and power to get there from here. How long will it take? That is a question only time will answer. This kind of change will be pervasive and will mean letting go of old beliefs as well as old habbits. Not just for Washington but for all of the Union and all of its citizens. Republican as well as Democrat. And did we not all say that we wanted change?!

What will it cost? There is no doubt that the cost will be high, financially as well as personally and that will make the next four years (?!) uncomfortable. I think we can believe the President elect when he says that the "Mainstreet" folks will not be taxed more than they are. And there are costs to bear, military costs, bail-out costs, debt-load costs. What is interesting is that there has been an incredible willingness to give to political campaigns and yet most everyone is unwilling to give to taxes.

What are the most likely changes to come from this election?

Our troops will be pulled out of Iraq.

This will mean that the Iraq government will have to step up to the plate and ensure that democracy is maintained in an area that has numerous outside influences willing to quash that. Let's hope that this move on the American part as well as a new President will mean more willingness for international involvement at peacekeeping aspects.

A change in the Medical system.

Having just had a very expensive Medical year I understand how people get into financial difficulty and/or bankruptcy. This cannot continue in a developed country, especially the United States of America. All the medical costs that are wasted in this country -and they are many:
-High administration costs
-High legal costs
-Costs for the uninsured/underinsured
-High drug costs
make this system inefficient enought to be ranked lowest of developed (and some undeveloped) countries. "Compared with five other nations—Australia, Canada, Germany, New Zealand, the United Kingdom—the U.S. health care system ranks last or next-to-last on five dimensions of a high performance health system: quality, access, efficiency, equity, and healthy lives. The U.S. is the only country in the study without universal health insurance coverage, partly accounting for its poor performance on access, equity, and health outcomes. The inclusion of physician survey data also shows the U.S. lagging in adoption of information technology and use of nurses to improve care coordination for the chronically ill." This from "Mirror, Mirror on the Wall: An International Update on the Comparative Performance of American Health Care."

http://www.commonwealthfund.org/publications/publications_show.htm?doc_id=482678

As you can see the system is not highly regarded and can only improve. So why the resistance? Well, probably because a lot of people are making a lot of money on it; so are we ready for change? Is government intervention at this scale socialism? Certainly the above mentioned countries don't think so and they are not countries with Socialist backgrounds. This begs the question; what level of government intervention makes for BIG government? The Republican administration has taken on a war that has cost almost $600 Billion dollars (how many zeroes is that?) and no-one has suggested that this is big government. After that we have a $700 Billion bail-out (which was necessary) in which the government has not asked the banks for voting rights, seats on the board, etc. that the British Government has asked for and gotten. Is anyone crying socialism over this?

We are in a changing world, there is no question. So why not question the old and familiar, especially if it is not working. And be assured, our Medical system does not work. For far too many people. That puts that additional cost on the people that are paying insurance. Is that socialism?

Those are just two of the issues of the past election, there are many more. Will our new President handle them all? Not likely. But let's not just give him a chance; let's help him succeed. We would have done the same had John McCain won.

Fair Oaks and Sacramento market analysis

2008-10-21T12:12:00.000-07:00

For you analytics out there here are some notes from Leslie Appleton Young's presentation to the CAR:

This is the 3rd anniversary of the start of the downturn.
Oct 2007 – statewide sales reached low point. September 08 looks strong.
California went down a lot more than the US and is improving faster.
Price behavior is unprecedented – it’s never come down so far so quickly.
2008 recovery is centered in the moderate to low end of the market.
It’s an amazing time for first time buyers as the unsold inventory index is down.
Sacramento is showing a more rapid recovery this year than many other California cities.
Greatest recovery is coming in areas where there is more moderate income housing.
Sacramento sales are way up from one year ago.
Sales increased from 2007 as prices dropped.
The median price of houses in Sacramento was $332,509 in August 2007; $219,147 in July 2008 and $220,894 in August 2008. This represents a year-to-year decline of 33.6%, but a month-to-month increase of .8%.
1st time buyers are getting younger and investors are coming back.
Spring 2007 was the peak in subprime lending. 15% of loans in California were subprime.
Sacramento has 21,300 subprime ARMs, representing 6% of total housing units. 40% have already reset. 39% will reset in 2008. 15% will reset in 2009 and 5% will reset in 2010 and beyond.
Sacramento County ranks 15th in Subprime loans relative to total home loans .
Taking out equity was a unique aspect of this cycle (see yesterdays posting).
All loans past due in California – 5%
Credit crunch started in August 07.
It’s crucial to the housing market to have a stable financial system. It’s critical that government do everything it can to get credit moving.
What happened to create this mess? It starts with a lack of personal financial accountability.
GDP growth is slowing.
Consumer confidence index went up in August and September. Are these people in therapy?
2nd half of 2009 is likely to be stronger.
A lot of areas have bottomed. You need to get clients to make decisions.
Price will bottom statewide in 2009. A lot of room for creativity in the market right now.

Surveys show the most valuable website for consumer is the local agent’s.

Fair Oaks, Real Estate and Interest rates

2008-10-20T10:20:00.000-07:00

Amids all the negative news last week there was the hoped for and expected news of some stabilizing and lower interest rates. As the short term interest rates had been lowered by the Fed it was hoped and expected that Mortgages rates would settle down and come down. Obviously that was easier thought than done as the market did its unsettling 'settling' last week.

As we all know from the past few weeks nothing is set in stone, at least not for a day or a week. However, by Friday 30 year Mortgage rates did drop from the high 6% range to about 6.25%. This is obviously good news to anyone who is out there shopping for a home and will bring payments down nicely on a mortgage of any amount. The remaining big issues still being down payment and qualifying. It will become clear over the next few months what the banking industry will except as the new 'norm' in that regard. In the meantime there are institutions out there that are interested in dealing with first time home buyers that need assistance. It is not clear how long this will last or if it will be accepted down the road. We have seen the availability of money change drastically in the past year and the rules still change daily.

Fair Oaks, where are we now?

2008-10-16T10:33:00.001-07:00

In my last two blogs I suggested that the "Bail-out" was working and that the Monday Market upturn was proof of consumer confidence supporting that. It seems I was a little premature as the Market tumbled again on Wednesday, the DOW falling more than 700 points.

It is interesting to note that this is being blamed on "news" of lower consumer spending. Is this news? Are we not all tightening our belts in order to ensure we can ride out this storm?The fact that the "Mortgage Crisis" is snowballing through the economy should be no surprise to anyone. Much of consumer spending over the past number of years has been fueled by the availability of "refinancing" funds. A lot of SUV's and large screen tv's have been bought by consumers and are now being paid for by banks (yes, this is a part of the $700 billion bail-out). Now that there is a shortage of real money AND no refinancing funds there is no money for consumer goods. Needless to say there will be a serious dip in sales. Like the housing market, you can look for some great consumer deals over the next 6 months!

The fact that the stock market should be responding to this "NEWS" so strongly boggles my mind. Has society collectively just pulled the wool over its eyes and refused to recognize the situation we are in? And if that is the case, why? I would suggest that this has to do with the fact that everyone has had a hand in this. We all knew this economic growth could not last. The only way we can get out of this is by taking responsibility back over the areas of influence that we each have. That is to say not let anyone tell us we can refi our house in order to make the payments or upgrade our toys. Once that attitude is the norm it would suggest that our governments will do the same and we can once again expect a return to normalcy.

Will this happen overnight? Of course not. Will it happen? Of course. The big step is to recognize that the responsibility does not lie at the doors of the banks alone. Some of the most conservative institutions, like Swiss banks, were involved. As a result we have all been affected. The big step is to take ownership of our own responsibilities. Blame doesn't move us along to repair what we have created. However, it has presented us with the best thing that this economic turmoil has brought on: Dialogue. Not just nattering, but REAL dialogue. Putting our beliefs aside and actually listening to what others have to say in order to better know the crisis. Once real understanding is a part of the crisis fabric we can move on.

Until then the market will bounce around like a yo-yo. And we will have to make our own decisions about where we need to be in all of it.

Fair Oaks; The bail-out plan unveiled!

2008-10-15T09:27:00.000-07:00

This article, taken directly from RISMedia: (http://rismedia.com/wp/2008-10-14/dow-soars-as-us-announces-plan-to-intervene-in-banks/ )

Among the bold moves announced by George Bush an hour before financial markets opened:

- Nine banks have “volunteered” to sell equity stakes worth a combined $125 billion to the U.S. government. The Treasury will get preferred, nonvoting stock. Other banks have until Nov. 14 to offer equity stakes to the government. The Treasury said that $250 billion of the $700 billion rescue plan that Congress approved last month would be deployed for this confidence-building step.
- The Federal Deposit Insurance Corp. will temporarily guarantee all new senior debt issued by FDIC-insured banks, thrifts and holding companies. This move addresses the freeze in short-term lending between banks, which threatens to paralyze the broader U.S. economy. Essentially, the FDIC will insure loans between banks until the crisis subsides. It will be paid for by premiums and transaction fees.
- The FDIC will guarantee all non-interest-bearing accounts in banks and thrifts that it insures. This is a new and important wrinkle to help smaller businesses across the United States. The FDIC recently more than doubled the insurance it provides on bank deposits to $250,000. But that figure didn’t cover a lot of businesses that maintain accounts for purposes of payroll and cash flow.
All these steps had been signaled late Monday night, and rumors of a change in the original action plan sent U.S. stocks soaring to record single-day point gains. The Dow Jones Industrial Average rose 936 points Monday, and soared almost 400 points on opening Tuesday.
Treasury Secretary Henry Paulson last month pushed a rescue plan that sought to purchase distressed assets from banks and other financial firms, mostly toxic mortgage bonds that no one wanted to buy. It took two tries to get the plan through the House of Representatives, however, and the financial crisis spread globally, aided by Europe’s inability to forge a common response in early October.
As the crisis deepened, Europe eventually adopted on Sunday an approach first pushed by Great Britain, namely guaranteeing loans between banks and taking stakes in banks to signal that these institutions won’t be allowed to fail. Washington followed suit Tuesday morning.
“Government owning a stake in any private U.S. company is objectionable to most Americans, me included,” Paulson said. “Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable. When financing isn’t available, consumers and businesses shrink their spending, which leads to businesses cutting jobs and even closing up shop.”
With the recent congressional battle still fresh in mind, Paulson stressed that the new, more comprehensive approach wasn’t a giveaway to banks and other lenders.
“Institutions that sell shares to the government will accept restrictions on executive compensation, including a … ban on golden parachutes during the period that Treasury holds equity issued through this program,” he said. “In addition, taxpayers will not only own shares that should be paid back with a reasonable return but also will receive warrants for common shares in participating institutions. We expect all participating banks to continue and to strengthen their efforts to help struggling homeowners who can afford their homes avoid foreclosure.”
Not all nine of the banks that are participating in the government’s equity purchase program did so voluntarily. Paulson met with their executives late Monday and let it be known that it was in their interest to participate, calling the move patriotic. One reason for the reluctance was that the Treasury will curtail the lucrative executive compensation and bonuses for top bankers who participate in the program.
The nine initial banks taking part are Bank of America, Merrill Lynch, Bank of New York Mellon, Citigroup, Goldman Sachs, J.P. Morgan Chase, Morgan Stanley, State Street and Wells Fargo.
In another important development Tuesday, the Federal Reserve set Oct. 27 as the date to begin purchasing commercial paper from U.S. corporations. This paper is a short-term promissory note that helps corporations fund their day-to-day needs, but the market for this staple of finance has dried up amid the credit crisis. The Fed announced earlier this month that it would bypass banks and lend directly to corporations through the Commercial Paper Funding Facility. The lending will occur only on three-month notes that have the highest rating.
Bush sent a letter Tuesday to the leaders of the House and Senate, informing them of his intent to spend $350 billion to purchase distressed assets from troubled banks and financial firms.
The Treasury’s point man on the rescue plan, Neel Kashkari, on Monday unveiled a number of appointments and hires designed to move on the purchases in coming weeks. He noted that he won’t buy only complex mortgage-backed securities, which involve pools of thousands of mortgages, but also whole loans. These are individual mortgages held by banks, many of them community or regional banks. The distinction means that the Treasury will aim to remove bad assets from banks both big and small in an effort to remove obstacles to lending.

So there you have it, a plan. Some direct action and a move to spread the $700 Billion out to areas where it is badly needed. As I stated yesterday, the move has already affected the market possitively. Now let's hope it is in time to save a lot of individuals out there that are hurting.

Fair Oaks and the post bail-out week

2008-10-14T12:09:00.000-07:00

Well, here it is. Just when everyone wondered what a $700 Billion government Bail-out looks like the Germans have put up nearly as much at $680 Billion and the French, that country of freedom fries has also put up almost $600 Billion. What does this mean to you and I? Well it probably means that some of your primary concerns around the "bail-out", that the government was acting hastily were unfounded. If anything we are now slow getting out of the gates! Rest assured a plan is on the way and we will see it this week. AND IT IS INTERNATIONAL. This means that each country will likely take care of its own financial institiutions-another fear put to rest!

As we can see, the international effort has had a strong enough impact to cause the stock market to do a turn-around. A strong enough turn-around to stabilize some of the retirement funds out there. Some of the other issues were Fannie Mae and Freddie Mac which almost all funds had shares in. What will come out of this -we hope- is some finer tuning of all stocks and bonds and their purchase mechanism/processes.

In the short term some stability has come to the economy and -hopefully- this will be reflected in long-term economic outcomes. Should that be the case the government should also be able to divest its various "$700 Billion" investments without too much loss ensuring a minimum cost to the American taxpayer. As I stated several weeks ago, we were all going to pay one way or another. Had the government not intervened our economy would have suffered. Unemployment, loss of retirement money, hard times, crime and instability might have reigned for an indefinite period of time wreaking havoc with everyone's lives. The fabric of our present society may well have been at stake. I think that is the primary reason that International governments have acted as they have.

So, again what does this all set the stage for in your home financing?

Our short-term interest rates have been lowered by a half a point which makes the financing for consumer goods more accessible. This may have a slower effect on mortgage (longer term) rates.

Mortgage rates are relatively low now, and they'll get cheaper if there's a recession, said David Burrows, president of Crescent Mortgage in Arlington, Virginia. "There is so much uncertainty that banks are repricing mortgage loans on a daily -sometimes- hourly basis now,'' said Grant Stern, a mortgage broker in Miami Beach, Florida.
Rates are low enough that some consumers stung by losses in their portfolios may want to refinance if they can lower their payments. Think Twice If you are in this position (SEE NOTES BELOW)!

Today's situation is the reverse of where it was for much of this decade. Instead of easy credit, borrowers will see tighter lending conditions. With credit tightening, consumers should think twice about making any extra payments on their mortgages in the short term, said Gibran Nicholas, chairman of the CMPS Institute in Ann Arbor, Michigan. Once you've used money to reduce your mortgage principal, that credit is gone. In the current environment, it may be tough to get back, Nicholas said. Major mortgage lenders have reined in home-equity lines of credit even to customers in good standing. Banks look at factors outside an individual's control, such as a weakening local economy or declining area home prices.

Refinancing may be another option for homeowners who qualify. Criteria to refinance include job stability, credit score, home equity and debt-to-income ratio. Interest rates for refinancing may be more attractive if borrowers are willing to pay an upfront origination fee, which is usually about 1 percent of the loan amount.

Homeowners who have Libor adjustable-rate mortgages (London Interbank Offered Rate), a widely used benchmark for short-term interest rates, should think about refinancing before their next reset. Libor is up 150 basis points over the past six months. A lot of homeowners will be seeing much higher payments unless they act. HOWEVER, if the real interest rate of a loan is 7.5 percent or less, refinancing may not save money. Homeowners should save enough money to pay back the refinancing costs in less than three years, otherwise it is NOT worth it.

As for buying a home, down-payment assistance is still available but getting more difficult to find each day. If you are toying with the idea and would like to know more call me!

If all this just provides you with more questions than answers you are not alone. Call myself or your loan officer to see where you stand.

Fair Oaks and the Federal bailout.

2008-10-01T09:47:00.000-07:00

I'm including an article by Jim Crawford on his Active Rain blog and my response below. (http://activerain.com/blogsview/711269/The-Government-Bailout-Explained). If you have any thoughts about this do not sit still! Talk to your representative and let him know what you want!

Has anyone really explained the government bailout to you? Me neither! Let me see if I have this right. Let's say the $700 billion does not represent homes. It represents the bad home loans that have been securitized into paper instruments that are supposed to (look) like a good investment note. The problem is, the cat is now out of the bag, and everyone knows they are not a good investment; in fact they are at risk. Now enters the government with a rescue plan.
Here is an overview. A 100% loan is made on a home that costs 250K. The home mortgage is sold to a new institution that turns it into a paper instrument. The note is packaged and sold off to a bank that can't get rid of it. Why? Six months before the home was sold at 250K, it was selling for 170K. There was a tremendous run up in appreciation due to the availability of 100% financing.
The buyer then walked away from the home and stopped making payments because they were unaffordable. Now it is society's problem. He then mails his keys back to the bank because his neighborhood has declined in price to 190K - and the clock on the home value is still dropping. New buyers cannot obtain financing, and they cannot sell their smaller property to buy this one. Everyone is in the same boat. Other neighbors are in trouble also. So here is where the government plan kicks in.
The government buys these bad notes off the institutions for, let's say 220K, and with the borrowed money ($700 billion) they exchange the bad debt from the bank to fresh new cash to infuse into the institutions. Now the government sits on this paper (and the homes that are represented by this bad paper) until the market comes back. Hell starts to freeze over.
Neighborhoods sit with vacant homes for years and are stripped of copper, siding, system mechanics, windows etc. Now here is the thrust of the plan when the markets recover; the government plans to sell back to the banks the same assets sorted or graded to current market. Now the value of the home has dropped to 110K in a blighted, crime-ridden neighborhood that no one wants to live in. The homes are marked to current value and sold for 37K because they have been neglected for five years, and the crack parties have taken their toll on the property.
So a profit could be made, but it is very unlikely due to the fact they were on 100%+ loans, and written on inflated assets that have not been adjusted for current market value. Mr. Bernanke and Mr. Paulson recommended that assets not be purchased at a rock-bottom, fire-sale price from the institutions. What they are recommending is discounted. I interpret this is the government paying retail for overinflated assets. Not too smart for a Harvard man, but then again it is taxpayer money.
So let's fast-forward five years later. The assets will have continued a decline in value, and will slide in price precipitously because the properties will be unmaintained. Meanwhile the home that you are living in is worth 65K. You paid 265K for it, but since the government is dumping the shells of vacant homes for pennies on the dollar, you're screwed. It took you two years to save up your down payment with 20% down. You made cash improvements to the property, and upgraded it and maintained it. Your investment is lost.
So for all who think a bailout is a good idea, it depends if you are buying or selling.

Your article is not an inaccurate depiction of the bailout plan. So let’s build on this idea and see where we and our government can take it. What is the alternative?

Your financial institution has closed its doors because it has no more funds to lend and there has been a run on its assets. Government assistance? Not available. Having just completed the renovation of your home you are waiting for a draw because your contractor has completed the last details. He is threatening to put a lien on your property and you don’t want that because you are set to put it on the market. You need to sell the home so that you can get out of the huge monthly payments that you’ve gotten into. And if you don’t do it quickly the market will evaporate even more. You go to the bank down the street to see if they can help only to find that, yes, their doors are open, but you are a realtor and your income has been sketchy of late. Not only that, you have not done your banking with them before so they look at your debt load and point you to the door.
So you go to the local convenience store to get some of their flowers for your wife. Your relationship has been tested through this renovation and you know that the financial news will not sit well with her. When you get in the store the shelves are bare and the operator’s son doesn’t recognize you. When you come in he is reaching for something under the counter and you can only guess what that means. As you start backing out of the store you run into a panhandler asking for a couple of bucks. Just as you are about to shove him aside you realize the man/woman (you are not quite sure) was a colleague not long ago. It turns out she recognizes you and becomes very aggressive because she sees you in the 3 piece suit you put on for the bank. As you get into your car she is hanging on to whatever part of the car she can while you are quickly trying to move away. You realize that you will have to spend another hour this week-end washing your car.

The car. Ah, yes, the car. The lease is running out next month and you had hoped to sell the house so that you can buy out the lease. You haven’t been putting a lot of miles on lately and you have always kind of babied the thing. Push comes to shove, you know that your wife really wants you to keep that car and you promised her you would. And you know that they are not bringing that car into the country anymore since political and economical ties were broken over how the US government handled the international financial crisis. You really had thought that the ‘free market’ would recover of its own will after the crisis. What really happened is that everyone closed their doors to outsiders and the wealth that existed has landed in the hands of even fewer people. Costs have soared and unemployment is the norm. The Dirty Thirties is but a fond memory and crime has risen to inordinate heights as people scratch out a living.

Sure, it reads like a science fiction novel but tell me that you haven’t had these thoughts occur to you and I’ll tell you that you are not reading the news. This is a crisis that needs to be handled quickly. And maybe the bailout is a plan with faults. However, the basis of the idea is sound and action needs to be taken. Good ideas have been tabled and the only thing that keeps the plan from morphing into a valid approach is the constant Partisan bickering. What we need is dialogue and discourse, not disagreement. If we can disagree/disapprove than we need to have alternatives. The public is having a giant tug-of-war with the notion of the ‘bail-out’ but very little constructive is being said or offered. Get in the fray! This situation that the ‘free market’ has gotten us into will cost the public one way or another. The question is; will the cost be controlled or will the economic outcome dictate the living conditions that we’ll be stuck with for an indefinite period of time? The choice is ours.

Fair Oaks: Has the housing market hit the bottom?

2008-09-29T14:41:00.001-07:00

Once again people are asking this question and, once again, the answer is this: Probably not. HOWEVER, let me now qualify that. Housing has gotten to the point that housing affordability is at 48 %. This means that 48% of the population CAN afford an entry level home. And when has that last been the case in the state of California?

As is always the case, housing is not like any other consumer good. When the house of your dreams (or something close to that) comes for sale you need to be able to act. Location, style, size and other factors are something that may take some compromise. Unlike clothing for instance, 1 size does not fit all. As a result you need time to be able to make hard decisions and in this market you have that time.

We have seen marked improvements in home sales in the past three months. As you can imagine this cannot continue without some change in pricing or availability. This is the slow time of year and most buyers have settled into their 'new' homes. As a result competition is not as brisk and your chance of finding 'that' home for you is much better. If you do this at this time of year you will also find more competition from the sellers meaning better pricing.

That leads us back to the question: "Has the market hit bottom?" In all likely hood, no. But it is close enough that the smart people are buying now. Because you won't know it has hit bottom until it is back on the way up. And can you afford to take that chance?

If you are not convinced, here is a recent article from the LA Times.

http://www.latimes.com/classified/realestate/rentals/commercial/la-fi-bottom13-2008sep13,0,1656693,full.story

Fair Oaks: More on the treasury $700 billion proposal

2008-09-29T13:20:00.001-07:00

OK, I know this is getting a little thin. However, think of all those zeroes in seven hundred billion!

Key components of the Treasury’s proposal include:

-The authority to issue up to $700 billion of Treasury securities to finance the purchase of troubled residential and commercial mortgage-related assets, including mortgage-backed securities and loans.
-This authority would expire in two years, and assets must have been originated or issued on or before Sept. 17, 2008, to qualify.
-Assets will be managed by private asset managers at the direction of the Treasury.
-Cash received from liquidating the assets will be returned to the Treasury’s general fund for the benefit of taxpayers.
-Funding for the program will be provided directly by the Treasury from its general fund by increasing its debt limit by $700 billion.
-Once the program is up and running, Treasury will provide updates to Congress semi-annually.

The proposal also grants Treasury Secretary Paulson authority regarding the purchase of assets, the timing and sale of assets, determining financial institutions’ eligibility to participate and more.

As you know the proposal has failed. There is mainly a group of Republican holdouts that are continuing the debate about whether the Banking culprits are being rewarded for their ...eh...mistakes. And a fear that the bail-out will upset the free market system (this is an interesting point as we all know it got us here in the first place). There are Democratic grumblings as well. And a number of lawmakers have put forward a proposal for a private enterprise bail-out (that's a scary thought considering the strength of lobby groups in this country). In any case we have no agreement and lo-and-behold look what it has done to the market! A sharp drop in stock prices has been felt in stock exchanges around the world as fears of a new credit crunch was reflected in investments.

Yes, nothing happens in isolation.

Stay tuned!

To access a fact sheet on the Treasury proposal, go to http://www.treasury.gov/press/releases/hp1150.htm

Fair Oaks and the Treasury proposal

2008-09-24T18:19:00.001-07:00

As we all know, there is a proposal before Congress that has been formulated in a very short period by the US Dept. of the Treasury (see details below).

http://www.treasury.gov/press/releases/hp1150.htm

There has been a lot of discussion about this proposal not the least of which is due to the shear cost of the proposal (700 billion dollars). The major discussion/debate around the issue is that this is a very "socialistic" proposal as it offers a scale of government intervention not seen since the "Dirty Thirties" (the loan and savings intervention of the 1980's cost the American tax payer around 200 Million dollars).

Needless to say that a lot of this is also fueled by fear around who will benefit and if or how the American tax payer will suffer/pay. The point that has not been disputed is that we need action and we need it now. So let's hope that our leaders -including our two would be presidents- can set aside their differences long enough to make a wise and quick decision. A decision that will help shore up American and International confidence in our system. Without some major form of intervention our economy will continue to suffer causing more stress on every American. What would be more costly, the indirect cost of government intervention or the direct costs of lower employment, a failing economy and more financial institutions failing? And that is just for starters. We have seen how the economy can snow-ball into the foreign territory we are in.

So we all need to put aside our Political affiliations and actually look at the issues in order to come out of this with a decision that will be a positive step toward economic rehabilitation. Talk to your neighbor even if he has a sign in his yard that you don't agree with. We need dialogue in this country that avoids the polarity of partisanship. We need to be able to guide our leaders to making sound decisions that are good for all Americans and not just the people that voted for them. Isn't that what Democracy is all about? And, isn't that how we avoid the type of situation that we are in at this time?!

Fair Oaks, Real Estate and statistics

2008-09-22T11:25:00.000-07:00

Here are some statistics from the Sacramento Association of Realtors. As you can see the market has had some interesting turns of late. It is not unusual for sales to decrease this time of year and it is not surprising that after a very active 7 months there is a turn down. Overall, the numbers are encouraging and I believe that this trend will continue through the winter months to a moderate degree as prices continue to serve both investors and home buyers. It is generally believed that the holiday season is not a good time to buy/sell a house. However when you think about it, that is just not true. Because the season is slower the sellers are serious and prices are aggressive. From the buyers perspective, there will be more choice and less competition for those choices. If you have been "out looking" for the past few months you will know what I'm talking about. You may actually have time to consider your choices before making a decision! As usual the Fair Oaks area has been hit about the same as other areas of the city. Again, the old town of Fair Oaks less so. The major factor for that being the stability of the neighborhood. Fewer people are moving so there is less inventory. Out of 42 listings in the area there are 2 REO (bank owned) properties and 6 short sales.

For you analytics here is the market report. Enjoy!

August home sales decreased for the first time in seven months. The August level of activity reflects the many distressed properties selling in the area. The following information, compiled by the Sacramento Association of REALTORS®, is collected from the MetroList® multiple listing services and covers Sacramento County and the City of West Sacramento.
August closed escrows decreased 5.5% from 1,979 units in July, ending the month with a total of 1,871. Compared to last year, August 2008 shows a 107.4% increase over the 902 units sold in August 2007. Much of the increase, however, is a result of the 1,239 bank-owned properties that sold this month, making up over 66% of all transactions.

A significant statistic this month is the August median sales price. For the first time in over a year, the median home sales price increased; $218,000 is 0.7% above July’s $216,500 median sales price. When compared to one year ago, the August 2008 median sales price is down 32.8% from the $324,500 median price of August 2007. The 2,156 new listings in August are a 10.9% decrease from July’s 2,421 new listings. The total listing inventory also decreased for the month of August, showing 7,225 listings, a figure 8.3% below the 7,880 listings in July.

The Sacramento market of low median price paired with a shrinking inventory has caused many to make the move to buy. Some areas have multiple offers on properties, leading to sales prices higher than listing prices. "As the median sales price returns to normal from its once-inflated levels, Sacramento is seeing more and more action. Certain areas, including North Highlands, Rosemont/College Greens and Franklin/Freeport are actually seeing properties sell for more than their listing price," notes 2008 Association President Alan Wagner. "Many people want to wait until the market sees the ‘bottom,’ but this is nearly impossible to accurately judge. The turn-around of this market will not be detected until we notice positive gains in median price and home sales." Wagner offers advice to REALTORS®: "By the time a bottom is evident, fence-sitters will have waited too long and missed a chance at a better opportunity. They then may become panicked and hasty in choosing their future home. Don’t let that opportunity slip through the cracks."

Continuing an eight-month trend, the August month-end housing market supply continued to drop to the lowest figure all year. The month-end housing market supply is calculated by dividing the total listing inventory by the number of closed escrows. This figure represents the amount of time – in months – it would take to deplete the total listing inventory given the current rate of sales. August 2008 inventory decreased to 3.9 months, down 2.5% from the 4 months calculated in July.

Condominium escrows for the month of August closed the month with 130 sales, a 3.7% decrease from the 135 closed escrows in July. August 2008 sales were 51% over the 86 closed escrows in August 2007. New listings published made a slight decline in August, showing a 2.3% decrease to 169 new listings from July’s 173 new listings published. The median sales price of a Sacramento condominium actually increased to $129,000, a figure 3.2% above the July median sales price of $125,000. The current median price, however, stands 37% below the $206,000 median price of August 2007.

Fair Oaks, Interest rates and Real Estate

2008-09-18T15:36:00.000-07:00

The AIG bail out has given us a sense of what the government is willing to do to support the economy. In this case an economy that involves the international community. It has created a lot of turmoil with the stock market especially around certain institutions. However, what has continued since the Fannie Mae and Freddie Mac take over by the Feds is a decrease in interest rates. 30 year Fixed rates can be had for 5 3/4%. This has continued to keep the Real Estate market relatively stable as we are seeing as many homes sell as new listings coming on the market. This means that prices are still very good. And, as we have seen over the past few months the more desirable properties are getting multiple offers. This leaves properties that have been on the market for longer periods of time with a weakened bargaining position. A good search with your Realtor can isolate those properties and find one that appeals to you. Some new programs have come up to assist financing for such properties and there is rumour that the NEHEMIAH down payment assistance program may come back.

All of this is good news if you are looking for that first time home or if you are investing. However, don't forget, it is also a great time to move up. You will decrease your tax base and the money you "lose" on the sale of your home in a weak market will more than be offset by what you save when you buy. Think of it this way, there are not too many non-bank owned properties out there. Properties are looked at carefully by people that do not want to be tied up for months. The head-ache of buying a house that is bank-owned is not for everyone! And, as discussed, the interest rates are good!

Fair Oaks, Dustin Buck is the Honorary Mayor for 2008-2009!

2008-09-17T10:47:00.000-07:00

Congratulations Dustin for running a succesfull campaign and taking on your latest challenge.

Dustin will continue to raise funds for a food vendor trailer for the Chamber to have and use in all of their events.

Good Luck Dustin!

The 6th annual dog-walk marks the end of summer in Fair Oaks!

2008-09-17T10:42:00.001-07:00

Join your neighbors on Saturday October the 4th for the 6th annual dog walk. There is a two mile walk that begins in the village and takes you down to the American River trail and back to the village for contests, raffle prizes, doggy treats and more. You can pre-register, order t-shirts and get more information at www.fairoaksdogwalk.com.

Proceeds go to FORDOG, TEAM and the Fair Oaks Chamber of Commerce.

Fannie Mae, Freddie Mac, Fair Oaks and Mortgage Rates

2008-09-10T13:31:00.000-07:00

Rates Decrease one half per cent overnight!

The insecurity over Fannie Mae and Freddie Mack was felt around the world. The Chinese government and the Japanese Government had 10% of the National investments in these two corporations. Had the American Government failed in its implied support of these two giants the international economic well being would probably have faltered. Needless to say a breath/sigh of relief was felt around the world.

As a result the mortgage investment people found renewed faith in that investment market and mortgage rates decreased substantially over night. This means that your purchase money will go further and the home that you were about to buy has improved substantially. What it will also mean is a stabilizing of the housing market as buyers will get off the fence and step up to the plate while prices are still good and rates are very good. Amazing the ripple effect of these various events that have happened in the past year!

Seriously, this means that a lot of people who have been watching the market for the past six months will make their move now. As with stocks, you never know the perfect time to buy. But with housing you have to move when you know that the house you have been looking at is the house you want. Unlike stocks the supply is limited. It is all about location so you have to make a decision when the possibility is right for you.

Here is my website folks www.REwithPeterV.com use it wisely and call me when you have questions or when YOU are ready to make a move!

Fair Oaks; Sacramento is one of the top 10 cities to live!

2008-09-08T20:20:00.001-07:00

Have you heard?

Kiplinger's Personal Finance Magazine (http://www.kiplinger.com) put together a review of the top 10 cities to live in for 2008, and guess what?! Sacramento is number 8!!!! The criteria..."places with strong economies, abundant jobs, reasonable living costs and plenty of fun things to do." NO KIDDING!

Well, of course most of us have known this all along. It is why we are more than happy to put up with the "Cowtown" label and be considered the "little brother" of the better known Californian cities. I hate to admit it, but when I first flew into Sacramento for a birthday party I could not have pointed it out on a map. And yes I could have placed San Francisco and Los Angeles on the map. However, having come for a birthday party, I never left.

This is a great city with a host of entertainment possibilities and great towns, cities and scenery within several hours drive. And all the beauty that a city can offer when it has won awards for having the most trees. Many of these trees are gracious old oaks that are carefully documented and guarded. Sacramento is a city of gracious tree-lined streets and, famous for flowers that bloom all year, it is known as the "Camellia Capital of the World."

On top of that, skiing at Tahoe is a mere two hours away, what else can a person ask for?

Of course one of the best kept secrets of Sacramento is Old Fair Oaks! It is one of the reasons that I am still here. Quiet, rural and surrounded by newer districts the town is curled up next to the American River and has direct access to the hiking and biking trail. This trail can hardly be called a secret of course. It hosts many hiking and biking enthusiasts and goes all the way from the center of the city to Folsom.

The village itself doesn't seem to have a need for street lights or sidewalks and still has wild chickens roam around the core of the village.

Come and see it! It is one of those many things you can do with your family to enjoy this GREAT city!

Two Exquisite short sales in Loomis!

2008-09-04T13:36:00.000-07:00

Check out these virtual tours and websites and see the two lates listings in Loomis. The first is a 1.7 acre property with a custom home that was completed in 2006 and the second is a remake of a classic 70's home on a 5.4 acre horse property with a view to die for!

http://idx.imprev.net/03782F07/53768/418671/index.ipv

http://marketing.remaxdesigncenter.com/53768/418858

Fair Oaks Real Estate and Rate Watch

2008-09-04T13:19:00.000-07:00

Prices have shown a fairly hefty 26% decline in Fair Oaks in the last year. The median price is $295,000 for the Fair Oaks district in general. There are areas such as The Old Village that have been less affected. I have not seen any statistics but there has been less than a six month supply of homes in this area which, in general, is considered a seller's market. Prices in Sacramento have changed from .1% to 63.7% in various areas and the Median price for homes has come down to affordable levels in all areas of the city with interest rates reaching some attractive lowes through CALFHA for first time buyers.

The Fed’s beige book, covering the late July and August period showed slow economic activity in most areas with elevated price pressures. Housing remained the main source of weakness, aggravated by credit market turmoil. Credit has tightened and credit standards have deteriorated further. Manufacturing, labor markets and consumer spending continue to slow. This report suggests the Fed will hold rates at their next meeting in September and possibly beyond as the Central Bank tries to prop up the economy and hopes for easing inflation related to the recent retreat in energy and commodity prices.

30 year fixed rates remain around 6.5% with 15 year fixed rates at about 6%.

This is still and excellent time to buy and that can be verified by the investor activity seen in the market in the past three months.

The annual Fair Oaks dog walk!

2008-09-02T09:12:00.000-07:00

Don't be left out. Don't let your dog be left out!

Every year the Fair Oaks Chamber has a dog walk in the park in this year is no exception. Come join the fun and meet your neighbors and their four legged friends.

The walk starts with the river walk and ends at the park with live music, food, contests and more.

The money raised helps your chamber sponsor local events and also goes to several local pet charities, so do your part and come and enjoy yourself!

Contact Teri Stevens or visit http://www.fairoaksdogwalk.com.

Check out the slide show of last years dogwalk here!

FAIR OAKS VILLAGE ENHANCEMENT VISION!

2008-08-28T16:59:00.000-07:00

Don't forget the concert in the park!

This is the last concert in the park! Hosted by Ships and Trips Travel, the Capitol Pops Concert Band performs tonight. Bring your chairs and get some food from the local eateries and have a family night out on this warm day.

This evening at the park will also be the unveiling of the FAIR OAKS VILLAGE ENHANCEMENT VISION. See what the Committee has put together with the input of property owners and business owners.

Fair Oaks Thursday concert in the park.

2008-08-06T20:23:00.000-07:00

This week see NIGHT TRAIN hosted by Dr. Elisabeth Swan Optometrist.

Listen to Jazz, Swing and Pop and Vocal entertainment in the open air stage in the Village Park. Bring your lawnchairs and buy some food from the local eateries. Great fun and entertainment for the whole family!

What to do in this Real Estate Market and what happened to down payment assistance?

2008-08-06T20:09:00.001-07:00

What to do in this market; hold back or go for it?

Aside from your housing needs, investing in a house is much like investing in stocks. You will never know when the bottom hits. One thing is for sure; when you find out that the market is on the way up it will be too late!

Here are some things to consider.

Down payment assistance will be a thing of the past at the end of the month. If this is something you need, act now!
Is the house of your dreams bank owned? This may get you a $7500 tax break.
How much lower will the market go in your area? Talk statistics to a realtor, to friends or to other investors and make your own mind up about where the market is relative to your comfort level. Even if we are not at the bottom we are not likely far off. This means that if you find a house that you like in the neighborhood that you like it is likely the time to make a decision.
Think of the other factors that affect your decision (they don't all deal with price). Mortgage rates, the money that you are paying on rent, where you live as opposed to where you want to live, commuting (non-financial and financial costs) and freedom from landlords.
Did you consider the tax advantages? It does not affect your monthly costs but could get you a healthy boost come tax time (when you will REALLY appreciate it)!

As you can see you need to look at the whole picture. As with every big investment you need to do a little research so that when you make a decision it will be a good one! The thing most people don't even consider is availability. Right now you have a lot of good, affordable choices. When markets get stronger that may not be the case. You may have to pay a premium for the home of your dreams!

As mentioned earlier, legislation is doing away with down payment assistance programs like the Nehemiah program. You need to be in contract by the end of the month if you wish to avail yourself of this opportunity, so don't delay!

Fair Oaks and Financial Title

2008-08-01T21:13:00.000-07:00

Well there are rumours and there are rumours. This week another big player has failed amidst the mortgage crisis. Fidelity Title closed their doors on Wednesday for good. And they will not be the last. Hard times are still here and a lot of people are still at the behest of the market. Personal losses and corporate losses abound daily shattering peoples hopes and lives and breaking up families. My thoughts are with the folks from Fidelity, people that I have worked with over the past few years. I know they will land on their feet because they are all fine people. Yet the time is not going to be easy. Lay offs have been prevalent and jobs are hard to come by.

And there is more. There are many more people out there that are losing their houses to the financial institutions. I have just listed one of them in Loomis, and it is not for a first time buyer. It is just shy of one million dollars having first been on the market at 1.3 million a year or so ago. Built by a builder for himself and his wife it is a beauty.

http://idx.imprev.net/03782F07/53768/418671/index.ipv.

And they are losing it. As you can see everyone is affected not just any one segment of our community.

If you are in this position get good advise. There are professionals that are not just interested in your home or money and will honestly help you get to where you need to be. Talk to them! If you need any contact names or numbers feel free to call me. My contact info is along the side of the blog.

On the other hand if you are looking to buy a house this is the time! Most of the homes on the market belong to people that have to sell and are priced accordingly. Down payment assistance is still available (though not for long) and mortgage rates are good. Call me!

Fair Oaks and the new housing bill

2008-07-28T16:15:00.000-07:00

Here are some of the details from the Housing Bill. As you can see this bill will affect almost everyone. If you have a house that you are having mortgage problems this article will help you understand the possibilities that will be open to you.

This will change the market conditions, be aware! With fewer bank-owned properties it is likely that values will rise. In the last several months we have seen investors scoop up most of what has been for sale at good prices. The pace has slowed down somewhat since June and as a result, it is easy to see that this bill will have an affect. A $7,500 tax rebate??! Yes. If you purchase a bank-held property you are open to a tax rebate. Between that and your annual tax savings you can see that this is a great time to buy!

NEW YORK (CNNMoney.com) -- The House on
Wednesday passed a $300 billion housing rescue
bill aimed at helping troubled homeowners avoid
foreclosure and supporting mortgage giants
Fannie Mae and Freddie Mac.
If the bill is now passed by the Senate and signed
by President Bush, who today withdrew his threat
to veto it, thousands of at-risk borrowers will be
able to refinance their unaffordable old mortgages
into new low-cost fixed-rate loans insured by the
Federal Housing Administration (FHA).
The Congressional Budget Office estimates that
400,000 borrowers with $68 billion in loans may
benefit from the program - but the bill allows for as
many as 1 million or 2 million borrowers to
participate in the program.
Here's what homeowners need to know.
Who's eligible?
Qualified borrowers must live in their homes and
have loans that were issued between January
2005 and June 2007. Additionally, they must be
spending at least 40% of their gross monthly
income on all household debt to be eligible for the
program.
They can be up to date on their existing mortgage
or in default, but either way borrowers must prove
that they will not be able to keep paying their
existing mortgage - and attest that they are not
deliberately defaulting just to obtain lower
payments.
Before homeowners can get FHA-backed
mortgages, they must first retire any other debt on
the home, such as a home equity loan or line of
credit. Borrowers are not permitted to take out
another home equity loan for at least five years,
unless it's to pay for necessary upkeep on the
home.
To get a new home equity loan, borrowers will
need approval from the FHA, and total debt
cannot exceed 95% of the home's appraised value
at the time.
How can I apply?
Borrowers can contact their current mortgage
servicer or go directly to an FHA-approved lender
for help. These lenders can be found on the Web
site of the Department of Housing and Urban
Development. www.hud.gov/ll/code/llslcrit.cfm
How does the refinancing process work?
This is a voluntary program, so lenders holding the
original mortgage have to agree to rework a given
loan before things can get started. The bill
requires lenders to make major concessions,
writing down the value of the loan to 90% of the
home's current value. In areas where prices have
plummeted by as much as 20%, that will mean a
substantial loss for the lender.
Page 1 of 2
How the housing rescue bill can help you continued
Page 2 of 2
Plus, they'll agree to pay the FHA 100% of any
profits they realize from higher home prices if they
sell or refinance within a year. So if the original loan
principal is $200,000 and the home sells for
$250,000, the borrower will owe the FHA $50,000,
minus costs.
After a year, borrowers will share 90% of the profits
with the FHA. The percentage keeps dropping in
10% increments to 50% after the fifth year, where it
stays.
What will I save?
Savings depend on what borrowers are paying for
their present loan and where they live, but for most
people it will be substantial, even after factoring in
the FHA fees.
In areas that have sustained huge price drops**
such as Sacramento, Calif., where prices have
fallen by about 30% over the past year, some loans
might be reduced by more than 40%.
Additionally, the FHA loans carry reasonable
interest rates, which are fixed for the life of the loan,
as opposed to a subprime adjustable-rate mortgage
that can jump higher every six months.
But lenders won't sign off on a workout unless they
think that they'll lose less money on that than they
would by allowing a home to go through the costly
foreclosure process.
Each loan will have to be underwritten by an FHA
lender on a case-by-case basis. That means the
banks will do a new appraisal to determine the
home's current value, as well as examine and
verify income statements, bank accounts, job
histories and credit scores.
Based on that new appraised home value, the FHA
lender must determine how much the original
lender has to reduce the original mortgage, so that
it will reflect 90% of the home's market value.
If the original lender agrees to the writedown, the
new lender buys the old loan and takes over the
reworked mortgage.
As part of the deal, the old lender writes off any
fees and penalties on the original mortgage,
including prepayment penalties, and accepts the
proceeds from the new loan on a paid-in-full basis.
Additionally, it pays the FHA an up-front premium
equal to 3% of the mortgage principal.
What does it cost?
There should be little up-front costs for borrowers
to bear. Loan origination fees will vary by lender,
but these can usually be paid by the borrower over
the life of the loan in the form of a slightly higher
interest rate.
However, the refinanced loans do come with many
strings. For one thing, borrowers are responsible
for paying an insurance premium to the FHA
guaranteeing the loan, which will be 1.5% of the
principal annually.
Borrowers also agree to share any profits from
future home-price appreciation with the FHA. To
do that, they'll pay a "3% exit fee" of the mortgage
principal to the FHA when they resell or refinance.

Fair Oaks and Downpayment assistance, help!

2008-07-24T14:39:00.000-07:00

As mentioned in our article yesterday, the vote for the "Housing Bill" legislation will happen soon. Register your complaint! Now! Go to the links in the article below and let your legislators know that you are unhappy with this choice. It will cut out 300,000 eligible home buyers from the market next year, and you know what that will do to the housing market and this country's economy! Never mind the value of your home if you already own one. Help!!

Fair Oaks, the Senate Housing bill and the Nehemiah assistance program

2008-07-22T11:17:00.000-07:00

You may have heard that the Senate is working on passing the "Housing bill". This bill has included a ban on private mortgage assistance like the 'Nehemiah' program. Having seen how the Nehemiah program assists people in buying homes makes this really disappointing. This program is unlike the 100% financing assistance that has gotten the market where it is. It is directed at people that can genuinly afford a home but need downpayment assistance. People that you likely know a few of! Especially in this market where mortgage rates have come down and there are many -AFFORDABLE- available houses for people that are now renting. For these people it is the perfect time to buy and they may not be able because they are lacking the required downpayment.

This move will only further the depression of the real estate market and reduce the value of our homes. The longer that these market conditions last the worse the situation becomes and the more damage done to the economy.

If you are at all concerned about this bill get in touch with your Congressional member and let them know. Follow either of the links below to register your voice!

http://capwiz.com/nehemia/directory/congdir.tt?action=myreps_form

http://capwiz.com/nehemia/issues/alert/?alertid=11598811

As well, here is a link to a recent Washington Post article on this subject.

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/21/AR2008072102456.html

The week-ender!

2008-07-17T09:17:00.001-07:00

Here is your entertainment guide for the week-end.

Fannie Mae and Freddie Mac and Fair Oaks

2008-07-17T08:38:00.000-07:00

How Fannie Mae and Freddie Mac affect all of us.

Fannie Mae and Freddie Mac are what are considered "Government Sponsored Enterprises". This makes them public traded companies at "arms length" from Government. However, they were originally created by government to make funds available for mortgages across the US. They are such a part of the economic structure of the country that the minute there was concern over their viability, the President stood up and stated that the Government will make available the funds necessary to keep them viable and functioning.

As we have seen in the collapse of IndyMac it is the mere suggestion of weakness of a banking entity that can cause its collapse. Needless to say the entity is likely already in a weak position for that to happen. But, as we know most of the banking industry has been weakened by the recent mortgage crisis. It is not a stretch to imagine that there will be more failures before all is said and done.

What this really mean is that mortgages will keep getting more difficult to obtain. From a realtor's perspective we can see daily the difference in pending sales to the number of closed escrows. The average over the past 4 months has been about 60%. That means a 40% failure rate for people trying to purchase a home. Even if we conservatively estimate that half of these failures are due to lack of financing we can see why the market continues to be in the doldrums.

So for the short term at least we can see that the Fannie Mae and Freddie Mac situation will keep the market conditions where they are. What will it mean in the long term? The President has made it clear that these pillars of our economic well being will be preserved. This should be encouraging. As we all know, housing is a long term investment that follows cycles. The market will recover! How long it will take has much to do with consumers and consumer confidence.

Interest rates have been up and down over this 4 month period. However, they are below 4% for a 10 year mortgage at this time and that is hard to beat. If you are willing to bet on a shorter mortgage term you can save yourself thousands of dollars per year. Combine that with selling prices that are at a 5 year low and you can see why an average of 100 houses are selling each day in Sacramento. This tells you about consumer confidence. Investors as well as home owners are stepping up to the plate to admit that they feel the conditions have gotten to that point. As with stocks, no-one can tell you when you have hit the bottom. It is an educated guess based on research and observed conditions. Use the available resources to help you and rely on professionals for a little guidance. And read beyond the news headlines!

Fair Oaks update

2008-07-10T09:54:00.000-07:00

It's a hot one! Yesterday my car thermostat read 108 degrees. I had been up on my roof doing some (really necessary) work when my body told me I needed a break. Interestingly it took me about 15 minutes and a quart of water to recover! I had no idea I was testing my system, but one look at that red face in the mirror indicated that I was in trouble.

I guess part of this is still getting used to the drugs that I have been taking for the auto-immune issues that are ongoing (see May 19th posting). However, when it is that hot and the air is less than pure we all need to be careful of our output and be aware of our bodies and what they are telling us. This is not just another comment on the news, this is real! Can you imagine what the fire-fighters are dealing with? All of that smoke and heat and very physical work can be very hard on your system. I certainly appreciate what they are doing! At a time like this we really need to be greatful for the National Guard and all of the local groups that are involved in protecting our land and lives.

Yesterday the Chamber and Parks and Recreation hosted a Breakfast mixer to highlight some of the community events and activities that Parks and Recreation are involved in. It was great to see such a large turnout at that early time of day. Healthy food was served and it was a good opportunity to learn about the various ways that our businesses and people can interact and work with each other to improve the community and our work!

Don't forget tonight is the concert in the park (see posting below). It is a great chance to mix and meet people and to just put your feet up and enjoy!

Fair Oaks Concerts in the Park

2008-07-09T21:11:00.000-07:00

This week's concert in the park is:

Pat Due and Playable

Acoustic Bluegrass and Swing, Folk and with a name like that there has to be HUMOUR! Enjoy yourself this Thursday evening at the park with this show hosted by Dusting Buck.

The 4th is over for another year, what's next?

2008-07-09T12:27:00.000-07:00

THE WEEK-ENDER! If you need to do anything other than put your feet up after the 4th, here it is!

Fair Oaks Real Estate Information!

2008-07-09T12:12:00.000-07:00

If you want to get real close to Fair Oaks Real Estate, follow this link. It will find you Foreclosure properties, home values, demographic information, school information, almost anything your heart desires! And what you can't find, I will! Just call me with your questions and I will find you an answer.

http://www.cyberhomes.com/searchresults.aspx?query=Fair%20Oaks%2C%20CA%2095628&srchtype=1&addrtype=8&city=Fair%20Oaks&state=CA&zip=95628&lat=38.652&long=-121.254&uniqueid=699409&ullat=38.6206&ullong=-121.3151&lrlat=38.6787&lrlong=-121.1931

Alternatively the site can find you homes in other areas as well and get you the same invaluable information. Seriously, get familiar with this and you can do all your own leg work if you are so inclined. Once you have all that you need call me. I will be happy to see you through all your real estate needs whether you are just laying the groundworks for the future or doing it now.

Haven't heard about the Nehemiah down payment assistance program? I am a Nehemiah designated specialist, put me to work!

Consumer Confidence and Fair Oaks housing

2008-07-03T09:57:00.000-07:00

The Conference Board reported that its confidence index fell from 57.2 in May to 50.4 in June thanks to the housing downturn, higher unemployment and the rising cost of food and fuel. The last time the index was this low was in February 1992, when the economy was beginning to recover from the 1990-91 economic downturn.

California's unemployment rate trails four other states. Some 1.26 million Californians were unemployed in May, up 115,000 from April and 300,000 higher than in May 2007. The state posted a net loss of 10,900 jobs in May, primarily in construction. However, there were net gains in jobs in education and health services, natural resources and mining, information, leisure, and hospitality.

These comments come from the news of Reuters and the LA Times. What does it all mean? It boils down to this: Mortgage rates are still fairly low by historical standards and housing costs are at a price where the investors are wisely stepping in to buy up the better of the foreclosure properties. If investors are putting their money into the housing market shouldn’t you?

Home sales have increased for two months running, and the number of closings are almost as high as they were in 2004! The market is volatile enough that people have been biding for well priced homes. As a result many would-be buyers have lost offers to savvy investors. This is incredibly frustrating and is where your Realtor comes in. Know the market! Know what you want and get it!

Many realtors have websites (www.REwithPeterV.com) that allow you to search for the house of your choice. Use them and your Realtor to get familiar with the market and to define your needs. This will not only save you a lot of time, it will save you a bundle of money that can be invested in other things. Like furniture or leisure.

One last note: are you or your realtor familiar with the Nehemiah down-payment assistance program? Get the down-payment assistance you need to invest in your future! I will cover this in a follow-up posting.

In the meantime have a great July 4th!

Your entertainment guide for Sacramento!

2008-07-03T08:39:00.000-07:00

Here is your week-end guide to Sacramento. As if you need any assistance in helping you kick start your Fourth of July festivities!

The weather looks great so enjoy yourselves and have a great Fourth!

Fair Oaks Concerts in the Park

2008-06-26T11:50:00.001-07:00

As well as the Week-ender here is this evenings concert. Held every Thursday this summer and hosted by the Fair Oaks Chamber of Commerce, this evening is sponsored by Fair Oaks Bowen Therapy (Mike McGee and Kathy O'Brien). The concert is "SISTER SWING' with Andrew Sisters 1940's style swing music. Come dance with us! As the Chamber will tell you; "It's free, it's fun and it's for the entire family". Bring your lounge chairs or blankets and pick up some food from the local eateries and you are set. The concert starts at 7 PM.

Your entertainment guide for Sacramento!

2008-06-26T11:45:00.000-07:00

Fair Oaks Foreclosures!

2008-06-25T15:39:00.000-07:00

So we had our weekly meeting at REMAX today and you can guess what was being discussed! Yes, sales have gone up. The formal statistics for April show 1800+ sales, an average of 60 per day (100+ escrows were being opened each day, giving you an idea of what wasn't being sold)! The numbers for May and June appear to be higher, but I have not seen a formal accounting of them. However, the story that these numbers don't tell is this; Notices of Default are up and our banks are still not dealing with their clients as effectively as they could. As a result there are -and will continue to be more Short Sales and Foreclosures for the near future.

I go through these lists on a weekly basis and even Fair Oaks, an area not as affected as some, has an increasing number of Bank Owned (REO) properties for sale each week. Now there is a great deal of difference in how each bank treats these. Some banks have gone to pricing them very aggressively in order to get multiple offers, raise the value, and sell them. Other banks still leave you a period of up to three months to complete your purchase. This makes buyers very reluctant in an unsure market where the value may well be less when they complete the purchase. As a result the price comes down and the banks lose more money.

Obviously all buyers need to be aware of these issues when entering into a purchase agreement with a realtor. Ask all the right questions!

Is this a short sale or a bank owned property
How long does the bank take to review the offers
After acceptance how long will they likely require for completion
Are there multiple offers
What will the bank pay for in this transaction
Is the pest inspection done
Has the roof been inspected/certified
Is there a cash for keys program
Are all the systems in place working
Your realtor and the listing realtor will go a long way to finding out all the pertinent information so that you can make a decision that feels good to you.

The last two will give you some indication of condition of the property. A number of bank owned properties do not have power or water hooked up limiting a home inspection. If you have less information about the house you need to allow for that in your budget/offer.

This market continues to be dominated by "Real Estate Owned" (REO-Bank owned property) and the market prices confirm that. However, well priced regular homes (not bank owned or Short Sale) are out there and as a result are good alternatives because they are generally in better shape. And the owners are just as anxious to sell because they have to for personal or work reasons. So check them out! It will likely be a less painful purchase process and you may be able to move in directly without any fixes or alterations required.

Either way it is still a buyers market and a good time to invest in your future housing. Certainly interest rates are still reasonable (yes they have gone up in the past several weeks) making your payments affordable. And last -but not least- there is always the tax savings you will incur with your interest costs. So, help the banks, help the economy and help yourself. If you can afford to buy your own home in this market, now is the time!

Cnn article on short sales

2008-06-13T09:18:00.000-07:00

Follow this link on some of the statistics for short sales. As you can see there are sound financial reasons that your bank needs to work with you on getting you back on your feet. The reasons that they are so slow to do this? Inertia? Lack of manpower/will? Or is it just an unwillingness to recognize their own losses? There are people out there that are willing and able to help you. A number of non-profit groups can help. Failing that, there are professional people that specialize in short sales. Get informed, know your options and save yourself a lot of grief and -maybe- money.

http://money.cnn.com/2008/05/28/real_estate/short_sales_long_waits/index.htm?postversion=2008052811

2008-06-12T14:46:00.000-07:00

Check out this lovely 5 bedroom home in the heart of Carmichael. It was built in 2002 and looks like new. It has hardly been lived in!

http://www.tierragardnsln.com/

Short Sales, Foreclosure and Bank Owned properties!

2008-06-12T13:42:00.000-07:00

If you are involved in any of these situations there are often more questions than answers. And who do you turn to that does not have a vested interest? Find people that you trust for information. A good realtor, a lawyer or well informed friends are all the basis of your information. And you need to be well informed. It can save you thousands of dollars and hopefully keep your grief to a minimum! In a recent meeting, legal council for REMAX gave a group of our realtors some well healed advice that I am passing along here. Look at it and see if the information applies to you. If you still have questions email me ( vandervelden.peter @gmail.com ) and I will see if I can help you. I can also help you work with your financing agency to see if there are alternatives to losing your home.

Situation:

A house is going thru a short sale. The loan that is currently on the house is the original purchase money loan (never been refinanced).

Questions:

Does CA state law allow a lender to require the sellers/borrowers to sign a new unsecured note when this is the original purchase money loan?

If the only way we the lender will approve the short sale and avoid foreclosure is if the borrower signs a new note is it enforceable?

Answers:

California Code of Civil Procedure Section 580B says that if a loan is obtained to purchase an owner occupied (at the time of purchase) 1 - 4 unit single family dwelling no deficiency judgment is possible after a foreclosure. That means the lenders sole remedy is to foreclose on the property and any loss on that loan disappears.

If the property has been refinanced the protection is generally lost.

Does this mean the lender can not ask the borrower to sign a promissory note for the shortfall? No. The lender can ask but the borrower is not obligated to do it.

Does this mean if the borrower signs a promissory note for the shortfall that it is unenforcible? No, unless the lender used fraud or deceit to obtain the new promissory note. If the borrower makes a new promise to pay they are obligated to fulfill that promise.

Can the lender require the borrower to agree to the obligation in order to approve the short sale? The lender can establish any condition they want to the approval of a short sale. But if the conditions are unacceptable the borrower can say no, the short sale fails and the lender is forced to foreclose. It is a matter of negotiation.

The lender says the short sale is ok but the PMI company is asking for a promissory note. What would be the rules in that case? The PMI company would be standing in the shoes of the lender and the same rules would apply.

Can the borrower get any concessions in exchange for signing a new note? It is a matter of negotiation. In the nineties many borrowers signed a new note because the shortfall was closer to $10,000 and the lender agreed to mark the loan paid as agreed so it did not adversely damage the borrowers credit. Now we are looking at shortfalls of $100,000 and more and most borrowers are saying no. In fact most lenders are not even bothering to ask.

Dave

The week-ender!

2008-06-12T12:17:00.001-07:00

Foreclosure news

2008-06-06T08:11:00.000-07:00

Here is the latest in a series of articles on Foreclosures and the real estate market today. As you have probably guessed it is not a pretty picture. Banks are still not moving fast enough to help homeowners in trouble and as a result more bank owned properties are coming on the market. The articles are from CNNMONEY.com and the LA Times and they are clear about the California housing market; we haven't seen the end! The interesting thing to note is that while this is true, house sales are up. For many 'Bank Owned' properties investors are bidding as banks have lowered the prices to encourage this. This is creating a lot of frustration and distress for people actually looking for a home rather than an investment. Stories of people making a half a dozen offers before deciding not to buy a foreclosed or short sale property are not uncommon. It has given some relief to 'regular' property owners selling their homes because they have to move on in their lives. Buyers are actually looking for non-bank owned homes! As a result we are seeing some improvement in the market if not the pricing.

http://money.cnn.com/2008/06/05/news/economy/foreclosure/index.htm?postversion=2008060514

http://www.latimes.com/business/la-re-market1-2008jun01,1,7861975.story

I5 FIX

2008-05-27T11:27:00.000-07:00

Well we've all seen the warnings! Here is the schedule for I5 for the summer. If you can plan your way around this you may save yourself some grief!

The week-ender!

2008-05-23T15:08:00.001-07:00

Polymialgia

2008-05-19T16:07:00.000-07:00

I told you that I would update you on my condition some time ago, so here goes. Just in case you are wondering if I am fit to work!!??

Apparently Polymialgia responds favourably to Steroid treatment. After going through a number of weeks of this therapy my symptoms did not go away as desired so the jury is out. Polymialgia fits into a grouping of fairly debilitating conditions that include Lupus, Arthritis, Fibromialgia and MS. So it is back to the drawing board with the possibility of some form of Arthritis. More tests, more costs and more time lost!

It is interesting that we go through the ...eh..."arrogance of youth" believing we are infallible or indestructible only to find that whatever our bodies go through they are still susceptible to frailties. And then we have to learn to live with them! It has given me a whole new perception and respect for what people go through in life. My neighbor has Lupus and my daughter has had Rheumatoid Arthritis since the age of 21. Trips to hospitals and doctors are regular fair to them and they do it as a normal course of their lives. Unlike myself who goes kicking and screaming and complaining the whole way. It means living within some undefined set of limitations that will likely keep changing.

Several months ago one of my clients had a stroke that was not diagnosed for a half a day or so and it has affected him the way most stroke victims are affected. His comment to me the other day was that his biggest upset is that people treat him like a disabled person. So the battle is as much mental as it is physical and the only way to stay ahead of the disease or condition is to be positive throughout.

So that is my take on it. Work with the symptoms as much as possible and let them into the background so I can concentrate on work and life!

Spring Crush!

2008-05-19T14:57:00.001-07:00

One hundred degrees and counting!

You have heard a lot of news about the real estate market hear in Sacramento and it does not seem to let up.

The most recent sales figures are out for April and as we all expected, the numbers are up. For the first time since 2005 a year over year increase (of 26%) was posted. This is not a surprise; for the better part of the past two months multiple offers have been made, especially on bank owned properties. These homes have come to prices that investors as well as first time buyers are prepared to pay. As a part of that equation, the inventory has not significantly increased leaving fewer homes to buy and choice being restricted. This has made buyers somewhat edgy and willing to bid for a home that is more attractive than its competitors.

Interestingly this has also helped to sell some of the houses out there that are not bank-owned. Foreclosed/Bank-owned properties generally need some level of maintenance and can be in various states of disrepair. This may be more attractive to those looking for a 'fixer' but is of less interest to a home buyer that needs a home to move into. As a result the competitively priced homes not needing repairs have been sought out and are selling. And that is the good news!

The other, less good, news for the market is that a very high amount of 'Notices of Default' (people not making their payments) have been sent out by banking institutions in the past month. It is not clear how many of these people will be able to make deals with their banks or how many may go into foreclosure. It is true that this is lending a sense of insecurity to the market. However, the market has reached a level where sales have picked up and people are prepared to invest in homes for the longer term.

SO, IS IT THE RIGHT TIME TO BUY?

You bet! Like the stock market, no-one can tell when the market has bottomed out (until, of course, it has happened). And once it has bottomed out there will be an upsurge. The second issue is that when you are looking for housing you are buying more than an investment. You're buying a home and getting all of the benefits that come with that. One of those benefits is the tax benefit which is another financial element to put into the equation. This benefit does not show up until tax time, but when it does will be really appreciated! Lastly, you've all heard the cliche about location, location, location. Now you have choice! While you may be reluctant to buy right now the house of your dreams could be bought up by others. Don't let yourself fall into that trap. I have had more than a number of clients that have let an opportunity slip away and feel badly about having to choose a less desirable home or location. That bad feeling lasts an awful lot longer then paying a little more for a home that you want or are happy with.

IS HOME OWNERSHIP FOR YOU?

This is obviously only a question you can answer. Your life style will be as big an indicator as your financial ability. If you are fairly secure in staying put for a number of years you will see a modest increase in value for your home so it will be like a forced saving plan. As discussed you will also have your tax savings and on top of that you will have the ability to make it your own and decorate it, landscape it or whatever! Certainly the most common comment is that you can get away from your landlord and from paying rent. And wouldn't that be nice! So check your finances and then talk to your friends and family and see how they see you. If you think that you are going to be in on place for some time, let this be the place and time! The market is right to buy and prices are still really good.

ANOTHER ROARING SUCCESS!

2008-05-05T12:14:00.000-07:00

Congratulations to the Chamber and their many volunteers! The Spring Fest/Fiesta days and annual Fun Run brought out the public by the thousands and was another giant success! Another thank you to all the sponsors as the week-end was very well attended, the weather was perfect and Fair Oaks once again showed small town character and big town spirit. This annual family affair is one of the three big events of the year and arguably the largest and most successful. The Fun run is just that, great fun. The races for the kids are a riot and you can see them stretching alongside their parents getting ready. The chicken man guides them all home through the otherwise quiet town streets and all of them get a heartfelt applause as they come into the home stretch. The 2.5 mile walk & 5 mile walk/run winds its way through the village and goes through the sailor bar park back into town to the park and finish line. En route you will find HERNIA HILL and the LAST GASP and plenty of volunteers and villagers handing out water and encouragement.

The toilet races and Frog jump are favourites and of course, to top it all off there is the 'show and shine' car show. Have a look at the slide shows and plan to be a part of it next year!

Fair Oaks Spring Fest this weekend. FUN FOR EVERYONE!

2008-05-02T08:14:00.000-07:00

HERE WE GO!!!!! This is one of the big community events of the year folks! Thousands of people come out for this event and it is a real family affair. It has everything, and the 'show and shine' is one of the better local car shows that you'll find. FOR FREE! The Sunday Walk and Run has entrants coming from all over the state and is as casual as you could want. Everyone from serious runners to babies and pets are included and all are encouraged by local residents lining the streets. You cannot get any better good family fun!

May 3 & 4—59th Spring FestFamily Fun! Parade, Pancake breakfast, frog jumping, car show, Sun Run, Toilet Races, food, vendors, exhibits and MORE!

SATURDAY AND SUNDAY
7:00 am Pancake Breakfast

Noon to 4:00 pm Frog Jump

SATURDAY
10:00 am Parade

1:30 pm Toilet Bowl Race

SUNDAY

8:35 am 5 mile run/walk and 2.3 mile walk (Children's 1/4 & 1/2 mile run)

8:00 am to 3:00 pm Spring Fest Car Show

PARKING in Old Fair Oaks is a challenge on event days. The community is working on solutions. In the meantime, use the FREE shuttle service provided. There's a large parking lot at Sunrise and Winding Way (Scandinavian Designs). It's an easy walk to the Village or the FREE shuttle goes back and forth regularly.

For a complete schedule: http://www.fairoakschamber.com/pdf/2008-Schedule-of-Events.pdf

OR go the the Fair Oaks Chamber of Commerce website: http://www.fairoakschamber.com/

My apologies!

2008-04-24T12:10:00.000-07:00

My apologies!

I have been remiss in feeding the machine! I haven't had an opportunity to add to the blog in the past two weeks. I have been diagnosed with Polymialgia, and talk about getting knocked on your butt! For those of you who don't know it is an autoimune 'condition' that affects the joints and tendons and leaves you feeling like you've been hit by a truck. It becomes difficult getting in and out of cars and off chairs and can leave you bedridden for days at a time. Typing can become impossible and getting your socks on or off can leave you in a fit of giggles (or tears) it is so hopeless.

Interestingly when you get in this situation you will find a lot of people that fit into this 1 in 30 category or understand it because they are familiar with something similar. The condition is wrapped into a group with Fibromialgia, Lupus, Rheumatoid Arthritis and Muscular Distrophy and is an inflamation of the joints. The areas mostly affected are the shoulder and pelvic girdles. The inflamation is caused by errant antibodies that attack the joints for unknown reasons. And yes, it is genetically linked. It turns out that two of my older siblings have had bouts of this in the past two years. And I didn't even know! It is more common in people in their 60's and of North European descent and can last as long as several years. Obviously I am looking to recover much more quickly than that!

Anyway, steroids seem to be the drug of choice. Now it's a matter of finding out just how quickly the body can adjust and heal. I feel like a walking chemistry lab. Here I thought that these little 'pill boxes' belonged strictly to old-timers! The worst part of it is that you have no idea how your day shapes up to be. Sleep can be real illusive leaving you inable to get out of bed. Alternatively laying down can be so uncomfortable that you actually have to get out of bed. As a result the mornings seem to be carried out in slowmotion.

http://www.mayoclinic.com/health/polymyalgia-rheumatica/DS00441

I will keep you posted.

Foreclosure!

2008-04-08T13:57:00.000-07:00

There has been a lot in the news about Foreclosures in the past year. A lot of statistics have been passed around and opinions are plentiful about what it's doing to the economy. Interestingly there has been very little said about the issue of forclosure itself and the human lives it is affecting.

What exactly is foreclosure and what do the other terms around foreclosure mean? Words and terms like Forebearance, Short Sale, and Notice of Default are not common to households of the people affected, let alone the rest of us. So how can we educate ourselves and others on these issues that are now affecting us all?

Believe it or not, there is help out there. And the agencies offering it are legitimate and are overwhelmed. Where inquiries numbered 10-20 per year they now literaly reach thousands. And most of the folks affected by the loss of their home are probably not even aware of this available help. I spoke with one gentleman last week that didn't even care anymore. He was just waiting to be evicted.

So let's look at the process. The following advice comes from Mortgage Resolution Services www.MResolution.com and the information can also be found through government or non -profit agencies such as "By Design Financial Solutions" http://www.bydesignsolutions.org/ and "NeighborWorks" home ownership center http://www.nwsac.org/. The latter two agencies have free counceling and training sessions to help you through this difficult time.

BENEFICIARY - The beneficiary in a foreclosure context is generally the mortgage lender. Frequently referred to as the "Benny".

CREDIT COUNSELING - Under the new bankruptcy law which took effect in October of 2005, those wishing to file bankruptcy must complete an approved credit counseling course within the six (6) months prior to filing.DEED IN LIEU OF FORECLOSURE - The voluntary surrender of property by an owner/borrower to a lien holder that eliminates the need to continue foreclosure action by the lien holder. The lien holder can refuse to accept the Deed in Lieu and file a Notice of Non Acceptance with the County Recorder.

DISCOUNTED PAYOFF - The payoff of a mortgage loan where the lender accepts an amount less that the actual amount owed to payoff the loan.

EQUITY DEFICIENT- A property is Equity Deficient when, if sold, sales proceeds would not fully pay off existing mortgage debt.

FORBEARANCE AGREEMENT - An agreement between a mortgage holder and a borrower that lays out a specific loan payment plan and often puts a stop on the foreclosure action so long as the borrower meets the terms of the agreement. The payment plan includes provisions for repayment to the mortgage holder of all delinquent interest and fees and could include extending the life of the mortgage beyond the original terms. A Forbearance Agreement is a tool that allows the borrower to keep the property.

JUDICIAL FORECLOSURE - A foreclosure action conducted through the courts instead of through a foreclosure trustee. Judicial Foreclosures are very uncommon in California, particularly on residential properties. Should a lender elect to pursue a deficiency judgment, it would be through a Judicial Foreclosure.

JUNIOR LIENS - A lien, usually a mortgage loan, that is subordinate to a Senior Lien, usually a first mortgage. Lien priority is generally established by recordation. NOTE: if you refinance a 1st mortgage on a property with a 2nd mortgage already in place the new 1st mortgage holder will require a subordination agreement from the Junior Lien.

holders to legally establish the new mortgage holder as 1st or Senior Lien holder.

LIBOR (London Interbank Offered Rate) - The interest rate charged among banks for short-term Eurodollars loans - LIBOR is a very common index for adjustable rate mortgages (ARM).

LOAN MODIFICATION - An adjustment to the terms of a mortgage, usually to assist a homeowner who has gone delinquent on the mortgage, or one for whom mortgage difficulty appears unavoidable. Among the most common modifications are adjustment to payment terms, adjustment to the interest rate or shifting of delinquent amounts for repayment later in the loan term.

LOSS MITIGATION - Home mortgage lenders look to limit losses on delinquent mortgages by working out solutions with borrowers through their Loss Mitigation Department.

NOD - Short for Notice of Default

A "Notice of Default" is sent by the mortgage institution when you have fallen behind in your mortgage payments. It is the start of the bank exercising it's legal recourse to collection of the debt. What do you do?

NOTICE OF TRUSTEE SALE - An official notice that is posted, mailed, published/advertised and recorded by Trustee at the direction of lender indicating lender's intention to sell the property at public auction. The notice typically includes a specific date, time and location.

POSTPONEMENT - Trustee Sales may be postponed by the Trustee at the direction of the lien holder. Notice may be given in advance or at the time and location specified for the intended sale.

PRIVATE MORTGAGE INSURANCE (PMI) - A policy of insurance paid for by the borrower to protect the lender in the event the borrower defaults on the mortgage. Typically PMI is required by the mortgage holder when the down payment is less than 20% of the purchase price.

REO - Short for Real Estate Owned. When a mortgage lender acquires a property, typically through foreclosure, it becomes real estate owned or REO.

SHORT SALE - The sale of a home which is completed through negotiation with the existing lender(s) in which the lender(s) agrees to accept less than the full amount owed to satisfy the debt allowing the debt to be "paid off" short.

TRUSTEE (Foreclosure Trustee) - A Foreclosure Trustee is appointed by the mortgage company when a mortgage reaches default status for the purpose of processing the foreclosure.

TRUSTEES DEED - The deed given to the highest bidder at auction or to the foreclosing lender upon completion of the foreclosure.

TRUSTEE SALE - Conducted by the Trustee. The propertyis sold at auction to the highest bidder or taken back by a foreclosing lender.

WHETHER YOU HAVE FALLEN BEHIND ON YOUR MORTGAGE, OR JUST SEE TROUBLE COMING WITH A PAYMENT YOU CAN’T AFFORD, IT DOES NOT MEAN YOU NEED TO SELL YOUR HOME. THERE ARE OPTIONS WORTH EXPLORING WITH YOUR LENDER THAT MIGHT MAKE IT POSSIBLE FOR YOU TO KEEP YOUR HOME.

YOUR LENDER DOES NOT WANT YOU TO LOSE YOUR HOME, AND YOUR LENDER DOES NOT WANT TO FORECLOSE ON THE PROPERTY. YOUR LENDER WOULD PREFER TO WORK WITH YOU ON OPTIONS THAT WOULD ALLOW YOU TO KEEP
YOUR HOME. HERE ARE A COUPLE OF OPTIONS.

A FORBEARANCE AGREEMENT

A Forbearance Agreement is a written agreement between a lender and a borrower that details a specific loan payment plan that is designed to help the lender recover delinquent amounts. The plan usually puts a stop to any foreclosure action so long as the borrower meets the terms of the agreement.
The Forbearance arrangement may allow the homeowner to delay or adjust their monthly payment, for a specified period of time, to allow the homeowner time to recover from a financial setback.
The payment plan in the agreement includes provisions for repayment to the lender of delinquent interest and fees, and likely extends the life of the mortgage beyond the original term.
Once the details are settled, the homeowner and the lender enter into a formal written Forbearance Agreement – and the homeowner gets to keep the home.
The key to working out a Forbearance Agreement with your lender is to demonstrate to the lender that the circumstances that led to your mortgage delinquency were temporary, and
beyond your control. The lender needs to be convinced that you are back on solid financial ground, and likely to keep the loan current going forward.

A LOAN MODIFICATION AGREEMENT
In a Loan Modification Agreement a lender agrees to modify the terms of a mortgage. This may adjust the minimum payment downward, so that the homeowner can manage the payment.
Remember that the lender does not want to acquire the property through foreclosure! When mortgage trouble is unavoidable the homeowner should not hesitate to ask for help from their lender. The modification of loan terms might be temporary or they might go on for an extended period of time. In either case, the lender is extending the courtesy of a modification because it makes business sense to do it.
Like a Forbearance Agreement, you need to show the lender that with the Loan Modification you will be able to remain current on the mortgage. It’s true, the lender does not want to foreclose, but also wants to know that in agreeing to with the modification the problem is being solved.

IMPORTANT CONSIDERATIONS FOR FORBEARANCE AGREEMENTS AND LOAN MODIFICATIONS

Be realistic about your finances. Before you go through the process of pursuing either a Forbearance Agreement or Loan Modification, ask yourself if this is the right course for you and your financial circumstances. If you are not in a position to make a commitment to your mortgage once the terms have been adjusted, a Forbearance Agreement or Loan Modification may not be the best option for you.
Getting a Forbearance Agreement or Loan Modification approved will require time and effort. You will be asked to provide the information and documentation to show that once your loan terms are adjusted you will be able to meet your mortgage obligation. The questions you will be expected to answer may touch on difficult and personal issues.
Take an honest look at your financial situation. If you are working on a Forbearance Agreement, are you truly back on solid financial ground? If not, a Forbearance Agreement is probably not your best option. A Forbearance Agreement is to help those who have experienced a temporary financial upset that led to a mortgage delinquency. A Forbearance Agreement is not a good option if you see more financial instability in the foreseeable future.
If you are requesting a Loan Modification, make sure that you can reasonably afford the monthly payment that you will have if the lender approves your request. There is no point in going through the process of getting a Loan Modification approved if you still have a payment you can’t afford.
When requesting a Loan Modification, know what you can afford to pay for your mortgage – and be able to confirm these figures. Your lender may be unwilling to make the adjustment you need, but that does not change what you can afford. You need to request an adjustment that puts your payment at an amount you can afford every month.
Note: When you evaluate your financial situation to determine what Loan Modification you wil need, take a hard look at your personal expenses. Be prepared to make adjustments to your “discretionary” expenses. You will be asking your mortgage lender to forego monies to which they are entitled, you need to be wiling to make personal adjustments as well.

Both Forbearance Agreements and Loan Modifications help lenders and homeowners get through the current mortgage delinquency problem. Families and communities benefit tremendously from the stability that homeownership provides. These agreements help preserve homeownership for many who need assistance at a critical time. Keep in mind that Forbearance Agreements and Loan Modifications are not the right answer for everyone. You may need assistance in coming to this decision.

Hardship Letter
A hardship letter is an outline for your lender to understand the situation or circumstances that make it necessary for you to request assistance. A good hardship letter lays out the facts of the hardship and includes a compelling personal element. Share the details of your hardship. Your hardship letter will be reviewed by a human being, give it the human elements that will be understood. Support your hardship with documents, letters, notices that help the lender see and feel what you are going through. Letters from doctors, layoff notices, notices of cancellation of auto or medical insurance, anything that legitimately contributes to an understanding of what you are dealing with should be included.
For a Forbearance Agreement, your hardship letter will focus on three things:

a the problems or circumstances beyond your control
b the temporary nature of your hardship
c the fact that you have now recovered and are back on your feet

If you are requesting a Loan Modification, your letter should focus on your commitment to your home. Your “hardship” may simply be that you got into a mortgage that you can no longer afford – probably due to a payment adjustment. Whatever your circumstances, make it clear in your letter that once the modification is approved the lender can count on you to remain current on your mortgage.

Be careful not to blame. If you need a Loan Modification because you were sold on a bad loan product, say it in your hardship letter without pointing an accusing finger.

Some tips to see you through the process:

Stay In Contact
If your lender calls, take the call. And, if your lender leaves a message, return the call. Making progress with your lender will require communication.

Listen Carefully and take notes
A Forbearance Agreement is a business arrangement. Answer the questions you are asked. Listen and you will find out what the mortgage company wants from you. Give them the documents and information they ask for. You may find that your mortgage company is so anxious to avoid foreclosure that they will offer very attractive terms in the Forbearance or Loan Modification Agreement. Don't offer solutions until you learn what the mortgage company has in mind. Ask them for an outline of what might work - and LISTEN! Always take careful notes of all conversations. Note the date and time as well as the name of the person with whom you speak. If you can't keep up with the conversations and take notes, don't be afraid to ask the representative to repeat information. Get the details. Get as many specific points as possible. The more detailed your notes, the more effective you will be in recreating the conversation later. Good notes from previous conversations could give you the leverage you need to get the mortgage company to honor an offer that was made.

Don’t Abandon the Property!
Do not abandon the property because you may not qualify for assistance if you leave. Stay in your home, speak with the lender and see what options they might have to resolve your situation. Remember...if the lender thinks you don't care about your home they may assume that you have no intention of paying them back. This is exactly what you don't want to happen. Get in touch with one of the agencies mentioned above and find out where you stand in the proceedings!

Stay Cool!

Be reasonable! Your mortgage representative is handling a high volume of loan files - just like yours. Patience on the part of borrowers often runs short. If you want to get your file moved to the top of the pile, you need to do one thing - be nice. Listen to what your lender representative has to say throughout the process. The mortgage employees handling delinquencies are not used to being treated nicely. You will find by doing so your file will move along much faster.

Don't Get Frustrated

There will be times at which many pending Forbearance or Loan Modification Agreements fall apart. A frustrated borrower loses patience and makes a decision at an emotional moment that undermines the entire file. Don't get frustrated. You will end up at the bottom of the pile!

Can I Get a Direct Number?
It will be a struggle to get through the automated phone system your mortgage company uses. Frequently it's possible to avoid this aggravation by getting a direct phone number for the representative with whom you are working. This may aid you in your effort to work with the same person throughout the process.

This is a business situation! Don't rely on your memory. Have everything written down clearly and all of your credit history records at hand. Review any agreement carefuly. Consider taking it to someone for help. Whether it is a Loan Modification Agreement or Forbearance Agreement, review it carefully. Once you have been fully approved by your mortgage holder, they will prepare the Forbearance Agreement.

Pay particular attention to the following items in the agreement:

1 Interest rate and payment calculation

2 Provisions for the mortgage holder's recovery of delinquent interest and accrued fees. Review both the method of recovery/repayment and the calculation of the total amount to be recovered.

3 Penalties that take effect if the loan is not kept current. In some cases the lender will attempt to keep the foreclosure door open, thereby allowing for an accelerated foreclosure if the loan becomes delinquent again. When reviewing the agreement consult your notes taken throughout your negotiation on the Forbearance Agreement. If you do find something in the agreement that is not consistent with your understanding give the lender the benefit of the doubt when resolving the misunderstanding. It is likely the discrepancy is a result of a miscommunication and can be easily corrected. This is where your careful, detailed notes will come in handy. where your careful, detailed notes will come in handy.

Get Legal Advice
Before signing the Forbearance or Loan Modification Agreement it is a very good idea to have it reviewed by an attorney. Some attorneys will do this for a minimum fee! Keep in mind that your agreement is more than just a document modifying the terms of your loan, it is also an attempt to collect a debt. The Forbearance Agreement may ask you to waive certain legal rights to which you are entitled and it may contain other provisions, the consequences of which you should understand. If you do consult with an attorney, show the attorney all of your notes taken throughout the process. It will help your attorney grasp the intended spirit of the Forbearance or Loan Modification Agreement as he reviews the agreement document itself.

Weekender

2008-04-03T08:40:00.000-07:00

Consumer confidence and the housing market

2008-04-01T09:45:00.001-07:00

http://rismedia.com/wp/2008-03-28/consumer-confidence-plummets-in-march/

Check this link to find out about consumer confidence. It gives some backbone to the following notes on foreclosure and the housing market.

Foreclosure news

2008-04-01T09:28:00.000-07:00

Rick Sharga, VP of Marketing for RealtyTrac says: "We have not hit the peak of foreclosures to date. 53% of homes that end up in foreclosure are homes mortgaged by sub-prime loans. That’s twice the normal rate. With vast numbers of sub-prime adjustable rate loans up for rate adjustments this spring, we have a long way to go before we see the bottom. Bank-owned properties (REOs) typically represent about 20% of sales inventory. Currently that number is 40%. Relative to the number of short-sales (sales of properties where the outstanding mortgage balance is greater than the sales price accepted by the bank in satisfaction of the loan,) accurate data is difficult to acquire. A detailed study of the balances due on all mortgages versus the actual sales prices would be needed to determine accurate figures. We are working on that data."

This should give us some insight into today's market conditions. Financially stressed owners are still setting the tone for the market. There are different market conditions across Sacramento. Areas such as Natomas and Lincoln and the North Highlands have all been affected more so than most. Needless to say these areas all have differing price ranges of homes that are in a distress sale situation. Other areas such as Fair Oaks Village are still very much a sellers market in that the inventory is less than 6 months.

What does this all mean? Two obvious things; 1) homes are selling and 2)prices are low. The interesting thing to note is that of all sales, only about 30%-50% are actually clearing escrow, so get your finances in order! A lot of banks are asking for an additional 5% down at the last minute because we are in a "declinging market". So be prepared. Higher deposits and better financial backing for loans will give a bank greater confidence that your offer will carry the day. As you probably already know there is high demand for the better homes out there. As a result there are often multiple offers. Make yours a strong one if you are serious about the home.

2008-03-28T08:50:00.000-07:00

Here is a link to a good article about the housing situation in general and Lincoln in particular.It is by Jennifer Openshaw for the DOW JONES Market Watch. If you are interested in foreclosure properties or just want to know why the market is where it is have a look at this.

http://www.marketwatch.com/news/story/day-foreclosureville-serves-up-lessons/story.aspx?guid=%7bDE50DF42-206A-457F-8781-8CE3B496C5D3%7d

2008-03-27T16:15:00.000-07:00

Having trouble selling your home? As you already know, pricing is everything in this market. However, there are some things you can do to liven up your home before you bury statues in your yard.

http://rismedia.com/wp/2008-01-31/curbscaping-an-appealing-value/

2008-03-27T16:03:00.001-07:00

Having a case of house lust??? You are apparently not the only one. This timely book speaks to our desires of home ownership and it's resulting follies. The following link has a good review of the book that is actually a very entertaining read. You may have heard the author speak on NPR recently. He definitly advocates this as a "Great time to buy!" but even if you don't you will be entertained.

http://www.usatoday.com/money/books/2008-01-20-house-lust_N.htm

THE WEEKENDER 03/27/08

2008-03-27T11:54:00.000-07:00

2008-03-27T09:53:00.000-07:00

Thinking of going SOLAR??

A lot of interest is being expressed in Energy alternatives. And it is not just due to our larger heating bills! Incentive programs are here and public interest in lessening our footprint is strong. Although the pay off for a solar system is still the main resistance point for most people, consider this: Energy prices will continue to escalate! Pay off estimates are always based on today's prices. As we all know they are constantly changing and with the dramatic increase in oil prices all other forms of fuel will go up quickly as well.

Here are several links. Check them out!

http://www.gosolarcalifornia.ca.gov/

http://www.smud.org/community-environment/solar/index.html

Relay for life

2008-03-25T15:36:00.001-07:00

The American Cancer Society is looking for volunteers! Come and help this year's RELAY FOR LIFE and give back to your community. SURVIVORS, CAREGIVERS; all you people out there that have been touched by this disease give some of your time to this worthwhile awareness and fund-raising campaign!

Call Tracy Ortiz at 916-995-8797.

http://www.relayforlife.org/relay/about

http://www.cancer.org/docroot/GI/gi_1.asp

http://www.relayforlife.org/

CANCER CAN BE BEATEN!!

HAPPY EASTER!

2008-03-21T09:42:00.000-07:00

Here it is, the Easter instalment of the week-ender. To all you would-be bunnies there are egg-hunts everywhere and there is no lack of chocolate. Enjoy these events with your family!

Last week-end's air show was a thunderous success with an attendance of nearly 75,000 people. It was a little breezy but fairly clear and the Blue Angel precision team was only a part of all that was there. The show is a non-profit event that funds aerospace scholarships. Congratulations on your success!

Another item of note is the latest lowering of the Fed rate this week. Although two Fed members opposed the 3/4 point reduction in the Key interest rate the cut was achieved and interest rates have been affected and lowered. At the same time, it is becoming even more difficult to get specific loans.
- Investment properties
- Second Homes
- Interest Only loans
- Downpayments of less than 3%
These loans have all become uninsurable and are therefore more and more difficult to obtain. SO...if you are shopping for a home and fit in one of these loan categories, talk to your realtor and loan officer and make sure that you are still eligible for the loan or loan amount you applied for!

Have a great Good Friday and a eggciting week-end!

2008-03-21T09:32:00.000-07:00

2008-03-19T15:42:00.000-07:00

Birds of a feather they are not and the second is not just a pretty face! A day at the beach and a day on the town.

CALIFORNIA CAPITAL AIR SHOW

2008-03-14T11:03:00.000-07:00

THIS WEEKEND CHECK OUT THE AIR SHOW AT MATHER FIELD!

www.californiacapitalairshow.com/

FAIR OAKS, CA, THE PLACE TO PLAY!

2008-01-31T19:47:00.000-08:00