Hello Neighbors,  The Wall Street Journal reported today that a bill in congress would allow discounting the mortgage rate for home buyers implementing energy improvements for Fannie Mae and Freddie Mac insured loans.  It's not indicated whether this is in addition to the FHA Energy Efficient Mortgage (EEM). Here's the complete text of the article summary from NAR: A bill that helps home buyers afford energy improvements and encourages banks to offer a discount on loans to pay for reducing energy usage passed the U.S. House in June and could pass the Senate in the fall.The American Clean Energy and Security Act of 2009 requires Fannie Mae and Freddie Mac to offer discounts on mortgages that include extra cash for making a home more energy efficient. These discounts, which are already in... 08/24/2009

The Washington Post reports that further work has been done on extending the current new home buyer tax credit. Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, "It's something we can get done."Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount incre... 08/24/2009

Good news on the appraisal front.  From the National Association of Realtors (NAR): WASHINGTON (July 23, 2009) - The following is a statement by National Association of Realtors® President Charles McMillan: "NAR and our 1.2 million members are pleased that the Federal Housing Finance Agency has instructed Fannie Mae and Freddie Mac to take action to clarify confusion over the new Home Valuation Code of Conduct for home appraisers implemented this past May. "Our members were experiencing delayed and lost sales because of poor appraisals conducted often by inexperienced appraisers who were not familiar with the area. The ramifications were so great to our members and to the housing industry that I personally met with the New York Attorney General's office and with the head of the FHFA to ... 08/13/2009

USDA Loans and Financing in Lincoln California Looking for ZERO down payment loan options?  USDA loans in Lincoln California still has plenty of money for financing in Lincoln and other semi-rural areas in Northern California.  I have successfuly transitioned many 3.5% FHA customers into USAD financing and used the 3.5% for closing costs and won very competitive bidding situations.     The USDA Financing is for low to moderate income families abvailable in the Lincoln California area.  The maximum income level for a family up to 4 persons is $83,750.  Families over that income level the Lincoln CA can have income up to $110,550.   Granite Funding Group is a branch of American Pacific Mortgage.  To learn more about our company go to http://www.putyouinahome.com .  My focus has always bee... 08/11/2009

The National Association of Realtor's is reporting 5 months of increased pending home sales.  We are seeing similar activity in the West as well as the Sacramento region. The report: Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to NAR.The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. "Historically low mortgage interest rates, affordable home prices, and large selection are enco... 08/05/2009

Hello Neighbors,As we continue to recover from these crazy times, the Feds are creating new legislation at an alarming rate. These new rules are rolling out a bit too quickly - and without a thorough analysis of the impact to the consumer. Don't get me wrong - the goals are important, and the steps needed. We simply need to know how to manage in these new environments.One immediate impact, probably 45 day purchase escrows. 60 days are even on the horizon.These changes impact purchase loans AND re-finance loans. Why?The two most important changes were rolled out on May 1st and early in July. The first is called the "HVCC" or Home Valuation Code of Conduct. It dictates how people in these industries work with Appraisers. In short, we can't talk to them! The second is a change to the Truth... 08/05/2009

Today, the Wall Street Journal reported that almost a quarter of owner occupied single family homes have a larger mortgage than the home's value.  If you are in need of a loan modification, feel free to contact me.  Neighborly Realty can assist you to find the resources to help. A report from Equifax and Moody's Economy.com shows that falling prices have left 24 percent of owner-occupied, single-family home owners with mortgage debt greater than the values of the residences. At the end of this year's second quarter, more than 16 million Americans were in this predicament, an increase from 10 million a year earlier. Almost 5 percent of owner-occupied dwellings are saddled with mortgage debt worth 150 percent of the property value. Nevada, where 40 percent of owner-occupied homes are "ups... 08/05/2009

USA Today reported today: Economic recovery is still a few months away, say economists surveyed by USA Today, but two-thirds of them think existing-home sales have bottomed out. Both housing and automotive markets "have the potential to generate some quite large percentage increases," says Bill Cheney, chief economist at MFC Global Investment.Overall, economists say unemployment won't peak until the first half of next year and credit markets will remain tight. "I think (the recovery) is going to be anemic," says Allen Sinai, chief economist at Decision Economics. "I don't think consumers have the wherewithal to buy a lot of cars and a lot of houses." Interesting comments lately from economists and the press.  If your sitting on the fence now about buying, it may be time to jump.  There ... 07/27/2009

Hi Neighbors, Freddie Mac has produced a video that shows late-paying borrowers how gathering a few financial documents before calling a mortgage servicer can cut the time needed to determine their eligibility and process their application for a loan modification under the Making Home Affordable program or Freddie Mac's other workout initiatives. Available in English and Spanish versions, the new Freddie Mac video, "Stop Foreclosure: Documents Your Lender Needs to Help You," can be seen at Freddie Mac's channel on YouTube at http://www.youtube.com/FreddieMacWeb. The two-minute video shows step-by-step which documents borrowers should have on hand when they call their servicer to discuss loan modifications. These documents can cut the time a servicer will need to understand the borrower'... 07/24/2009

Some of the homes my first time home buyers and investors have checked out look like they may have had a shady past.  Sometimes it's angry prior owners or renters.  Other times it may have been illegal activity.  For Bank Owned REO homes, the Realtor representing the bank and the bank itself may not be aware of all the activities that occured at the home. Melissa Dittman Tracey wrote on the 16th about '5 Signs Your Listing May Have Once Been a Meth Lab". Melissa states that the NY TImes published an article about how Illnesses Afflict Homes with Criminal Past. Things Melissa writes that you should watch out for: 1. Yellow discoloration on walls, drains, sinks and showers. 2. Blue discoloration on valves of propane tanks and fire extinguishers. 3. Fire detectors that are removed-or taped... 07/24/2009

A followup to an earlier blog entry.  RadarLogic is reporting a 6.9% increase in home prices for the Western Region that includes Sacramento, Denver, Las Vegas, San Francisco, Phoenix, San Jose and Seattle. For year-over-year reports, Sacramento had a 21% decrease in home values from May of 2009 vs May of 2009, and a 30% decrease in home values for the prior year.  This puts the Sacramento area at the 3rd highest trailing area in the nation over the past 2 and 5 years (only 2 other areas have been hit worse in the housing value change) For month-to-month reports, Sacramento had a 2.7% increase in home values for May and a 1.5% increase in home values for April.  There has also been a corresponding uptick in sales volume for the area.  NAR chief economist reports 4 months of consistent g... 07/24/2009

I've written before about the problems faced by home buyers and sellers recently with the new rules for appraisers.  This is a national set of rules, and I've seen both buyers and sellers affected by the new rules.  In one case getting an appraiser out of Southern California to appraise a house here in Northern California.  The appraisal was way off, and it through a monkey wrench into the closing process.  A new bulletin (2009-18) came out from Freddie Mac that covers some of these issues. NAR (National Association of Realtors) reports: On July 10, Freddie Mac released Bulletin 2009-18to sellers and servicers. The bulletin addresses appraisals and underwriting. Regarding appraisals, the bulletin focuses on qualified appraisers, credible appraisers, comparable sales, and monitory apprai... 07/24/2009

You may have noticed that print ads in newspapers such as the Sacramento Bee and hard-copy magazines have virtually dried up over the past 2 or 3 years.  A recent National Association of Realtors report states that nearly 90% of all home research is now done online.  This applies to both rental homes as well as home purchases.  Virtually all of the clients I work with use the internet tools I provide to keep up-to-date with new and updated listings. Define and Refine your home search on EnglePropertiesOnline.com. Popular tools for the area is the real estate link at SacBee.com & click on HOMES in the top menu bar.  Realtor.com, Zillow.com, Trulia.com, Redfin.com, the Sacramento Craigslist.org site are all good places to look, with 99.9% of the homes coming from the same MLS pool that yo... 07/24/2009

Yesterday, Zillow announced a True Cost tool tauted to allow borrowers to make an apples-to-apples comparison of custom quotes.  Mary Miller - director of product management writes: What is True Cost?True Cost is the sum total borrowers will pay in interest and fees during the expected time they plan to keep the loan.  We call it True Cost, because it is the amount of money borrowers will never recoup. It does not include the principal accumulated, since principal is not an outright cost, but rather, it is equity that borrowers will likely get back when they sell their homes.  However, we display the amount of accumulated principal as an additional number to consider, because principal will grow at varying rates depending on loan program. Why is it important to look at a True Cost calcu... 07/24/2009

Hi Neighbors, Today, the Sacramento Bee has an excellent article about both the benefits of purchasing a home as an investment as well as the emotional and personal side of going through a foreclosure.  All from the point of view of Sherie Coelho who has done both in the past decade. As an investor, Sherie used $30,000 from her late mother and used that to purchase a home in south Sacramento for $115,000. To make the story more poignant, she lost her home in 1997 in a foreclosure action.  It's a great read, giving a glimpse at the human side of investing and foreclosure.  Many of our neighbors have gone through the same process in Sacramento and Placer counties. I hope you enjoy it as much as I did, JeffNeighborly Realtyhttp://www.EnglePropertiesOnline.com     07/24/2009

National news has been reporting 3 months of increasing home prices in the US.  The same can be said for Northern California.  For example, the Modesto Bee reported that the median home price in Stanislaus County has risen $4,000 to $139,000 over the past 2 months. Craig Lewis, president of Prudential California Realty said, "Any house in decent condition priced below $250,000 is getting multiple purchase offers.  Some homes have had more than 40 people competing to buy." Sacramento and Placer counties have also posted similar gains, and as I've written before, competition is consistently fierce in the under $250,000 price point where both first time home buyers as well as investors are competing for homes.  Better homes that are priced correctly usually sell in the first 30 days - ofte... 07/24/2009

Nick Timiraos of the Wall Street Journal recently wrote about the possible positive signs in the California Real Estate market: ZipRealty reported a 56% decrease in San Bernadino county to a level last seen in 10/05.  San Francisco area dropped to 20,000 listing which was last seen in 2006.  Similarly Orange County dropped to a level last seen in 2006 as well. However, Notices of Default (the first step in the foreclosure process) rose by 10% over the previous year in California according to ForeclosureRadar.  Trustee Sales (the 2nd step of the process) actually FELL by 15% in June. Nick mentions that California has a new moritoriam on foreclosures, as long as a bank has a process in place for loan modification they are excempt from the moritoriam. There is no doubt that we have seen a ... 07/24/2009

 This article appeared on MSNBC.  Especially in the past year, in the Sacramento - Roseville area, home prices have dropped to the most affordable level in decades.  There are lots of homes in the area that allow for renters to move into their home for about the same or even less than they are paying for rent.  With the $8,000 federal tax credit PLUS many energy credits and the FHA Energy Efficient Mortgage (EEM) available this is a perfect time to investigate owning your own home. Many renters debating whether to buy or rent their homes are realizing that the increase in affordability, coupled with low interest rates and tax incentives, are tipping the scales toward homeownership. KEEP THIS IN MIND An analysis of 45 metro areas by the Associated Press found that the gap between the mon... 07/24/2009

Hi Neighbors, New federal rules require that consumers receive initial disclosures of the estimated mortgage costs within 3 business days of a loan application.  Lenders cannot collect any fees prior to the consumer receiving loan-cost disclosures.  This includes fees for appraisal, credit, and other charges at the time of application.  Consumers must receive the truth-in-lending disclosure and an annual percentage rate (APR) calculation of the loan costs prior to any fees being collected. Lenders also have to provide a copy of the real estate appraisal at least 3 business days prior to closing.  Current law states that consumers can request and obtain a copy of the appraisal, but according to the California Association of Realtors, many home buyers are not aware they can do this. In ad... 07/24/2009

  Department of Real Estate, California, Issues Fraud Warning on Loan Mods June 2009: The California Department of Real Estate has issued a fraud warning alerting consumers about loan modification scams and what they can do to protect themselves. It is available in both English and Spanish. One year ago, the DRE had less  than 10 complaints involving loan modification companies; today the department has 750 pending investigations. Since last October, the DRE has filed more than 200 Desist and Refrain Orders. A list of the companies and persons the DRE has filed an action against can be seen at http://www.dre.ca.gov/cons_drs.asp.All California firms who collect advance fees for loan modification services do so illegally, the DRE said. In general, only licensed real estate brokers and att... 07/20/2009