Archive for May, 2009
Investors Kicking the Tires
May 29th, 2009 categories: Home Auctions, REO, Real Estate, Sacramento
The real numbers behind home auctions
Talking with a real estate investor the other day I was set straight about what I (and many others) assumed was happening with properties going to auction. Apparently investors once poised to take advantage of this market are scouring for bargains too. According to Foreclosure Radar approximately 94% of all the homes that get sold at a trust deed sale in our area go back to the bank! Given the moratorium on Notices of Default (NOD) filings and the hope of receiving bail out money it’s no wonder the banks are finally streamlining short sales…they need to make some money!
Recent statistics for Sacramento county reveal that there are approximately 6000 homes currently for sale. Another statistic that astounds me is that the banks have about 4400 homes being held back from the market. Now if they were to put all of those homes on the market today then we’d see an investor feeding frenzy. With the recent low interest rates and now the approval of the $8000 tax credit allowed for closing costs, buyers have a golden opportunity to beat the investors to the deal.
First time home owners finally have a chance to get into our market after being locked out for the past few years. This reminds me of the bay area right after Prop 13 passed and homes were snapped up en masse. The difference is that interest rates are hovering around 5% AND the median price of a home in Sacramento county is $212,000. With those stats you could own a home with a monthly payment of around $1500.00 including taxes and insurance! These days cash is king but FHA works just as well to buy a home so what are you waiting for?
Related articles:
http://folsomlakehomes.com/2009/05/06/foreclosures-fixer-scams/
http://folsomlakehomes.com/2009/04/28/short-sales-impact-on-credit-scores/
http://folsomlakehomes.com/2009/04/14/california-prevention-act/
http://folsomlakehomes.com/2009/02/16/loan-modifications-vs-short-sales/
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Home Loan Modification Help
May 15th, 2009 categories: Finances, Foreclosures, Loan Modifications, Real Estate
Red Flags To Watch Out For
Yesterday the California Association of Mortgage Brokers (CAMB) held their 5th Annual Expo for the lending industry in Sacramento, CA. The topic of the day was Loan Modifications and how to help consumers obtain a successful loan modification while protecting both consumer and vendor.
One statistic that raised eyebrows was the number of pending cases against attorney’s for fraudulent loan modifications throughout the state of California…117! According to speaker, Jack Williams, past president of CAMB attorney’s getting into the loan modification business when previously they practiced another area of the law is not in the best interest of the consumer. Some were charging up-front fees and not delivering a successful loan modification while others just plain didn’t do a thing for the homeowner. Seems there are always some who take advantage.
This brings up a couple of good questions to ask potential law firms prior to paying a retainer for their services. The first being: How many and how long have they been doing loan modifications and what is there success rate? There is a difference between hiring an attorney and completing the transaction. You certainly don’t want to pay for some attorney’s learning curve.
Another question is: Do they offer to return your money if the loan modification is turned down? Most successful firms will run your numbers up front to determine if you fit the criteria. Gone are the days of no documentation or stated incomes. You will need to prove your income, account for all expenses and back up everything you claim with a paper trail. The bottom line is that the bank wants to see if you make the money to sustain the new loan and can weather the usual bumps of life without defaulting.
For those who don’t qualify for a loan modification and need to consider alternatives you can email me to discuss your situation. For related articles see:
http://folsomlakehomes.com/2009/05/06/foreclosures-fixer-scams/
http://folsomlakehomes.com/2009/04/28/short-sales-impact-on-credit-scores/
http://folsomlakehomes.com/2009/04/14/california-prevention-act/
http://folsomlakehomes.com/2009/02/16/loan-modifications-vs-short-sales/
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FREE Mortgage Rights Workshop
May 11th, 2009 categories: Elk Grove, Loan Modifications, REO, Real Estate, Short Sales, Special Events
Legal Forum for Homeowners in Crisis
This Tuesday, May 12th at the Elk Grove Community Library there will be a seminar hosted by two local attorney’s who specialize in real estate mortgage matters. The most impressive part is that it’s FREE and one of the speakers, Davie Pereira is a “court qualified expert in mortgage finance.”
The reason I am promoting this seminar is because as a real estate broker I am not afraid to ask the tough questions and to defer to the experts when I don’t know what I don’t know. I’ve met with Mr. Pereira and I believe his knowledge of real estate mortgage law is impressive and his willingness to share his expertise with the public is refreshing.
According to the flyer there are no commercials for his or his companies products and there will be a question and answer session after the presentation. Additionally he has told me that he does offer a free consult so if you have further questions or don’t want to discuss your situation in a public setting that is an alternative solution.
You must pre-register at 916-275-0907as seating is limited and if you have any questions concerning mortgages, credit, foreclosures, bankruptcy or other financial questions I would advise you write them out and bring them with. Opportunities for the public to ask relevant questions of mortgage professionals are rare and given his knowledge of contracts any insight he might offer is well worth the time spent.
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Related articles:
http://folsomlakehomes.com/2009/05/06/foreclosures-fixer-scams/
http://folsomlakehomes.com/2009/04/28/short-sales-impact-on-credit-scores/
http://folsomlakehomes.com/2009/04/14/california-prevention-act/
http://folsomlakehomes.com/2009/02/16/loan-modifications-vs-short-sales/
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Hollywood Comes to Folsom CA
May 10th, 2009 categories: Folsom, Sacramento, Special Events
Filming starts in June 2009
Actors and extras auditioned yesterday for a new movie to be filmed on location in Folsom and Sacramento CA this summer. Power and Pride starring Stephen Baldwin and Eric Roberts is a story about a politician about to make a poor decision…what’s that old adage about life reflecting art or is it supposed to be the other way around?
This G rated movie has already had auditions in Sparks NV last February. The goal of the casting agent is to try to provide as many non-union jobs as possible so expanded the search outside the production location area. The cool part is that you can be updated on the production via email simply by enrolling at 315 Entertainment Group on the Power & Pride website.
Kudos goes to those in charge for bringing an action packed movie (and jobs) to our area given the fact that the Sacramento valley ranks 20th on the worst housing markets chart which is better than Stockton at fifth place. The additional revenue will certainly be a boost not to mention the thrill of seeing famous people in our small town. The real excitement will be when we see some of the locals on the big screen!
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Teen Entrepreneur Workshop in Folsom
May 7th, 2009 categories: Finances, Folsom, Special Events
YoungBiz is coming to Folsom and I would encourage parents of teenagers to get their teenagers involved. This workshop is designed to teach basic financial skills and offer aspiring entrepreneurs the structure and encouragement to pursue their dreams. According to the Young Americans Center for Financial Education nearly one third of high school seniors use credit cards. Another statistic: the average college student graduates with $22,500.00 of debt and that is not counting those who don’t actually get their diploma! I wish they had this workshop around when my teenagers were in high school because they could have benefited greatly.
The format is designed for high school students and encourages creative thinking while developing fundamental financial skills coupled with real time examples of peer success. The venue is the Folsom Public Library (Stafford St.) and begins at 4:30 until 7PM. Students will have the opportunity to meet successful business people (their own age!) and find out how they succeeded. Some of the ideas are as basic as breakfast cereal! Seating is limited so call 916-806-3989 to reserve your seat. For more information contact: mariehall@youngbiz.com
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Foreclosures Fixer Scams
May 6th, 2009 categories: Foreclosures, Real Estate, Short Sales
FTC Cracks Down On Rescue Scams
A bit late but better than never. Peggy Twohig, the Associate Director (Division of Financial Practices) for the FTC, spoke today before the House and introduced their plan to curb the schemes of fraudulent companies taking advantage of homeowners.
Apparently over the past year there have been eleven cases brought forth against companies who have defrauded uninformed consumers. What this means to you and me is that you now have somewhere to go to find out what questions to askto verify if someone is legitimate or not. Hope Now Alliance is a good place to start to educate yourself about the process and even offers Free counseling.
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Related articles:
http://folsomlakehomes.com/2009/04/28/short-sales-impact-on-credit-scores/
http://folsomlakehomes.com/2009/04/14/california-prevention-act/
http://folsomlakehomes.com/2009/02/16/loan-modifications-vs-short-sales/
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Home Sales Down 13.75% in March for Folsom CA
May 2nd, 2009 categories: Folsom, Folsom CA, Real Estate
64 Homes Closed Escrow
Of the 64 homes that closed escrow in March 2009 here in Folsom CA, four were short sales, ten were bank owned and thirteen did not have any reference because they were not reported in the MLS. The average home price is now at $345,000 in Folsom which is a 13.75% decline from March 2008according to Dataquick’s Sacramento Bee report.
One indicator that we are still holding value is the price per sq.ft. which lingers at $184.00. Of course that is an average amount but shows that Folsom CA still has a higher value. In fact Granite Bay CA shows an average price per sq.ft. of $185.00 so the residents of Folsom should feel pretty good about their home values. That number reflects a decline of 12.5% year over year but significantly lower than Sacramento county as a whole which posted a 36.5% decline from last year.
If you would like to know your home value please email me with your address and I can run a comparative market analysis. You might be able to submit for a reassessment and lower your taxes but you will need that information to show the county.
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