Hi Neighbors, Just a quick update.  The California Association of Realtors posted it's 2nd quarter 2009 First Time Homebuyer affordability index.  For California overall, 67% of households could afford to buy an entry level home.  This is up from 49% a year ago.  The estimated monthly payment including taxes and insurance is $1,330 for a median priced $224,180 home.  The minimum houseold income was $39,930. For Sacramento region the index was at 79% compared with 70% a year ago and 80% last quarter. Again, good news for first time home buyers!  Chances are good that you can qualify not only for that home, but also if you act quickly you can still apply for the $8,000 Federal Tax Credit for First Time Home Buyers. More details on each area can be found here. Enjoy, JeffNeighborly Realtyh... 09/17/2009

Hi Neighbors, Lots of things go into calculating the interest rate on your mortgage, so few people get the rates quoted in online or newspaper ads.  Factors that influence your interest rate include: The amount of your down payment also factors in the 'Loan to Value' ratio Points paid to 'buy down' your interest rate Your credit score as reported by Experian, Trans Union and Equifax agencies Debt to Income ratio Type or property Whether you are occupying the property or someone else Amount of loan An interesting article in the New York Times and reported on the NAR website regarding the amount of down payment: A Down Payment Anomaly Despite home buyers being advised to issue down payments of at least 20 percent, many home buyers are finding that smaller down payments result in better in... 09/17/2009

Hi Neighbors, Came across this tidbit originally posted in the NY Times: Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today: Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage. Don't become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing. Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical. Include a maintenance budget. Even new homes need upkeep a... 09/15/2009

Hi Neighbors, Zillow is reporting some interesting statistics on home sales.  In most market analysis I've done in the Placer county area homes are in general selling about 101% of list price.  They are reporting sales in Sacramento to be 100% of list price.  The key takeaway here is that in most situations buyers need to be aware that 'deep discounts' are already on the table in the list price.  Of course this varies and you should always consult your realtor to provide you with the appropriate details on the house you are putting an offer on. More information: Homebuyers continue to drive hard bargains, holding down prices while allowing properties to sit on the market for an increasing length of time, according to Zillow.com's market report. Nationwide, buyers paid 3.3 percent, or ne... 09/10/2009

 Hi Neighbors, Another note about mortgage relief.  If you are interested in a loan modification, feel free to contact me as Neighborly has relations with a local and reliable loan modification service. The Obama administration's $50 billion "Making Home Affordable" mortgage relief plan is picking up steam, with 360,000 borrowers, or 12 percent of the eligible group, signing up for a three-month trial mortgage modification."There are signs the plan is working," says Michael Barr, assistant Treasury secretary for financial institutions. "But we can do better."Bank of America has enrolled about 7 percent of its 836,000 eligible loans, compared with 25 percent for JPMorgan Chase & Co.The Treasury Department's decision to publish these numbers is driving the banks to do better. Lenders are ... 09/10/2009

Hi Neighbors, The California Association of Realtors (C.A.R.) has published a FAQ on legal issues on property loss during 'Acts of God' such as firestoms.  This informative article is available here. In the introduction, the article sums up it's goals: The seasonal firestorms we experience in California raise several legal questions for REALTORS® and their clients. The following questions and answers may be helpful for property owners and residents who have suffered a loss, or for buyers who are in escrow to purchase property involved in the disaster. Our hearts and prayers go out to those effected by the fires. Your neighbor, Jeff 09/10/2009

Hello Neighbors,This is very cool.At a time when employment is challenging - yet buying a home is absolutely the right thing to do (and timing couldn't be better), CAR is offering "First Time Buyer Insurance". I love it.Take a look:C.A.R.'s Housing Affordability Fund (C.A.R.H.A.F) has committed $1 million to support the Mortgage Protection Program - and the National Association of REALTOR another $420,000 - an insurance product that kicks in when the unexpected happens: job loss. Your first-time buyers who enroll in the program can draw upon their mortgage protection policy in the event they lose their job after purchasing their home. Under the program, first-time buyers will be eligible to receive $1,500 per month for six months in the event of a job loss; co-buyers are eligible to rec... 09/10/2009

Hi Neighobrs, Freddie Mac is offering clinics on avoiding foreclosure.  A number of the sessions will be in California.  Click here for a link to the California sessions. If you are facing foreclosure and would like to explore options, please call.  We are associated with local loan modification services that may also be of help.  There are programs available to help families to keep their home.  Remember, we here at Neighborly are available to help.  Give me a call. Your neighbor, Jeff(916) 303-0257 09/10/2009

Hi Neighbors, Relocation.com is reporting that more people are moving for positive reasons: People have gone back to moving in hopes it will improve their lives rather than moving to escape foreclosure or other aspects of the economic crisis, according to a survey of recent movers released this month by Relocation.com.In the June survey, nearly 42 percent said they were in the process of buying a home or planning to buy one. Poll participants said their reason for moving was: To live in a bigger or better home (26 percent). To live in a better neighborhood or area (24 percent). To be closer to family or friends (12 percent). To live in an area with a lower cost of living (9 percent). To accommodate a change in marital status (6 percent). Moving because of school, job loss, retirement, o... 09/03/2009

Hi Neighbors, The USA Today reports FHA loans have made a dramatic comeback over the past year or so. About 25 percent of all new mortgages are backed by the Federal Housing Administration in what will probably be the busiest year yet for the federal agency.Applications for FHA mortgages rose 50 percent from last October through mid-August 2009 and approvals for purchases, refinancings, and reverse mortgages rose 70 percent to 1.67 million.FHA loans "are one of the most important sources in this market," says Mark Zandi of Moody's Economy.com. "Without FHA, the housing slide would be much more severe. We wouldn't be talking about a recovery now. We'd still be talking about a crash."Some analysts are concerned about the risk the FHA has taken on, but others point out that borrowers with ... 09/03/2009

With the recent fires close by in Auburn California that destroyed 63 homes a thought a word about wildfire would be in order.  What is eye-opening is that this is not a real rural area, but made up of suburban homes and businesses.  Many of the homes did back up to a preserve or natural area. Here in Lincoln, a friendly shepherd has had his goats and sheep graze off a lot of public and private land.  One herd of over 800 goats and sheep are currently grazing and eating 1.5 tons of grass and brush a day.  That's a LOT of potential fuel for fires removed.  His herds graze each area for a few days, and actually give us the opportunity to get native plants a chance to grow. Plus we are getting our open spaces fertilized so next spring should be great for wild flowers, bushes and grasses.  ... 09/03/2009

 September 2009 Market Update for Placer County  Hi Neighbors,  Another discussion of the current market in Placer County.  There are currently 2060 homes on the market in Placer County as listed on MLS (Single Family Detached Homes). This number has stayed pretty constant throughout the summer. 713 or 35% have been on the market over 90 days.  7% of the total inventory (148 homes of the 2060) are REO (Bank Owned) homes , 32 or 16% of the REO have been on the market for over 90 days. 46% of the homes (944) are short sales and 1039 are organic non-distressed sales.  342 homes have been sold in the past 30 days (August). 112 of these were REO homes or 33% of the total homes sold for the month.. Looking at the under $200,000 market 18 of 36 homes were REO (50%). 52 of the 342 were Short Sa... 09/03/2009

Hi Neighbors, Here's a report from the Pittsburgh Post-Gazette.  "Long-term mortgage rates remain near record lows, despite rising slightly this week. Freddie Mac reported that average interest on a 30-year fixed loan was 5.14 percent, up from 5.12 percent a week ago. Rates for 15-year home loans, meanwhile, rose to 4.58 percent from 4.56 percent last week."Source: Pittsburgh Post-Gazette (08/28/09) Good news for home owners getting a new mortgage or planning to re-fi. JeffNeighborly Realty 08/29/2009

Hi Neighbors, Just a reminder that you should always check with a tax consultant when doing a short sale to validate the tax implications of your transaction.  A recent article in the SF Chronicle (read article here).  The article states "Californians who lose their homes in a foreclosure, short-sale or deed in lieu of foreclosure this year could be hit with a state income tax on canceled or forgiven debt."  Federal law excepts taxing the forgiven debt through 2012.  State rules are more complex, so check with your tax professional.  Two state tax bills are in the Assembly to expand the tax relief. Have a great weekend, Jeff 08/28/2009

 The California Association of Realtors published a great article originally from the LA Times that I would like to share with my neighbors. What to do if your mortgage is sold to another lender Approximately half of all mortgage loans are sold from one lender to another, often because the original lender is not equipped to collect payments, manage escrow accounts, pay taxes and insurance, respond to questions, and prepare payoff statements when the home is sold or refinanced.  Some borrowers may receive letters in the mail alerting them of the sale of their loan a few days after closing, while others may not receive a notice for years. In the mortgage-industry, this is called a "transfer of servicing," and is a common practice.  Borrowers should not be concerned about these changes, as... 08/28/2009

 The San Gabriel Valley Times is reporting: Home sales increased 12 percent in July in California compared with the same period a year ago, while the median price of an existing home declined 19.6 percent, according to the latest sales and price report released by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). MAKING SENSE OF THE STORY FOR CONSUMERS ·          Closed escrow sales of existing, single-family detached homes in California totaled 553,910 in July at a seasonally adjusted annualized rate.  The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the July pace throughout the year. ·          Many housing analysts believe the first-time home buyers tax credit has helped fuel home sales in recent months.  According to ... 08/28/2009

Hello Neighbors, More evidence that sanity is returning to Real Estate! Freddie Mac has thrown its weight behind helping us in the industry. Thank you NAR (National Association of Realtors) for posting this update. Short Sale transactions are the hardest escrow to conclude. Even when we have a Willing buyer, and a willing Seller - the Seller's lender will do a variety of evil things to kill the process. Only 25% of escrows on Short Sales are actually making it to COE (Close of Escrow). The other 75%? Who knows. Default (foreclosure), Loan Modification, or the Seller "catching up" are the other likely outcomes. One of our least favorite actions is when the Short Sale lender comes after our wages. We can get through the entire negotiation process, inspection period, escrow .... and then h... 08/26/2009

Hello Neighbors, The recovery is upon us! (Note to self though - the rumored zillions of foreclosures still to hit the market could drive things down again... but when will those homes hit the market? I've been told "next month" for 11 months now...) Thank you NAR (National Association of Realtors) for the updates posted below! STRONG Gain in Existing-Home Sales Maintains Uptrend Washington, August 21, 2009 For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®. Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted annual rate1 of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.... 08/26/2009

Hi Neighbors, Many economists and other experts are now saying pretty consistently that the housing market is stabilizing with additional relatively small decreases of housing prices depending on the location and the price range.  In some areas and price ranges there are already moderate price increases including Northern California where the home values were among the first and hardest it in the nation. So, when do I buy?  First, when you look at the affordability of homes right now they are at record points right now dropping even below the 10 and 20 year historic average of keeping on par with inflation.  Price changes over the next several months should not impact your decision to buy because you should be looking at housing as a long term investment whether you are a home buyer or ... 08/24/2009

  The Los Angeles Times has a great article about the first time home buyer credit.  Although extension and expansion of the current bill is being considered, it's important to note that these changes may not be passed or may not take the proposed form.  Here's the article summary: First-time homebuyers-those who have not owned a home for at least three years-may be eligible for the $8,000 federal tax credit, but the window of opportunity is closing rapidly.  To qualify for the credit, the buyer must close escrow by midnight on Nov. 30, when the tax credit expires.  Buyers hoping to take advantage of this benefit are advised to start house-hunting early, as the buying and lending processes takes time. MAKING SENSE OF THE STORY FOR CONSUMERS ·          Finding the right house can take so... 08/24/2009