According to the National Association of Realtors  (NAR) now is the time to buy. Looking at the latest Rent vs Own chart on Trulia you can see why.  Foreclosure Radar, a leading website that tracks foreclosure activity shows the price decline in our market as much as 46% from the recent bubble. It’s obvious why buyers previously  unable to afford a home are feverishly submitting offers on our very limited inventory…especially since prices have increased this past Feburary!

Additionally the lending rates have been historically low but don’t expect that to last. According to Foreclosure Truth we should expect to see prices rise as the government implements more programs to make housing more affordable “Every single significant increase in home prices in the last 100 years was immediately preceded by government intervention. The evidence is irrefutable. Every time the government works to make housing more affordable, prices rise”.

So if that makes you want to get out there and shop then give me a call…I specialize in the Folsom Lake area and have been representing buyers and sellers since 1999.  Email me at Beth@FolsomLakeHomes.com or give me a call (916)947-3993 and I’ll help you get started.

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If you want to sell your home because your property value has decreased to less
than what you owe then read on to find out if you qualify.

Have you been denied for a loan modification and want to try something else to
avoid foreclosure… then a short sale might be your solution.

Afraid your home value has decreased and you won’t be able to sell…perhaps a short sale is your solution.

If any of these sound familiar, discover more about the
process and potential benefits of a short sale. Not quite sure how a short sale
works…then keep reading and I’ll do my best to answer your questions along the way.

What’ exactly is a short sale?

A short sale is just that—the sale of your home for a price that falls
short of the amount you owe on your mortgage. What’s the benefit to you? You get
to settle your mortgage debt and avoid foreclosure, even if property values have
declined in your area.

So, how does it work?

1. Your Realtor will help you to estimate the value of your home’s sale price.

The next step is to secure a buyer for your home. (The
buyer will sign a purchase contract and provide proof of financing, such as a
pre-approval letter for a new home loan.)

2. Submit your completed short sale
application package to your mortgage lender or servicer which includes:

• Application
• Last 2 months recent bank statements
• Proof of income: paystubs, tax return, etc.
• Listing history
• Executed purchase contract
• Purchaser eligibility certification
• Proof of buyer financing
• Estimated settlement statement from your title/excrow company.

3. Your Realtor will submit your package along with the necessary estimates from the title company to your lender/servicer.

Why is a short sale better than foreclosure?

Now that you know the basics of applying for a short sale, you might be
asking… how is this option better than foreclosure?

When foreclosure occurs, a homeowner is forced to vacate the property
and may encounter legal issues and costly fees involved with the foreclosure
process. This is undesirable for both the homeowner and the lender.

In a short sale, a homeowner enters into a mutual agreement with the
lender to end the mortgage. This is reflected on your credit report as
“negotiated settlement of debt,” which may be less damaging to your credit than
foreclosure.

For more information on the credit or tax implications of pursing a
short sale to avoid foreclosure, please speak with your tax advisor or a real estate attorney.

I want to apply for a short sale. How do I start?

First it’s important to keep in mind that when
you apply is very important. Once you’ve decided that you want to pursue a short sale, apply as soon
as possible. If foreclosure proceedings have already begun on your home, please
note that most banks want your short sale  APPROVED at least 15 days prior to the
foreclosure sale date so time is of the essence.

For more information regarding short sales see:http://folsomlakehomes.com/2010/02/26/short-sales-know-your-options/

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The city park and recreation dept. is holding it’s annual summer camp for kids at the zoo starting August 8-12, from 10 a.m. – 3p.m. Children ages 7-10 can learn all about animals in a safe, fun setting.  Activities offered are: games, songs, crafts, and close encounters with a variety of amazing Zoo animals. They will learn which animals are predators and those who are prey. Educating campers about complex animal societies and how they, like we, work together as a team in their natural environment. It’s a great opportunity for children to close out their summer while learning things not taught in the classroom.

Camp is for ages 7-10; fee is $289 for Folsom residents / $330 for non-residents.

Please call Folsom Parks & Recreation at (916) 355-7285 or access our online registration system at

http://webtrac.folsom.ca.us

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Some interesting news is starting to surface regarding the housing market in Folsom Ca and surrounding areas. It’s well accepted that we are now bumping along the bottom of the market looking for a floor and it appears that we might have found it! According to a snapshot of statistics from the local MLS it appears prices are starting to go up! Oops! Wasn’t there supposed to be someone at the bottom ringing a bell or something?

As you can see  this chart of  home sales from Sept. 2005 to Sept. 2010 shows that the bottom of the market was somewhere around Janurary 2010!  That doesn’t mean that you’ve completely missed the bottom. If you are waiting for an approval on a short sale then you’re probably one of the lucky few who got your offer in at the right time.

Overall, Folsom has held onto the higher priced status in comparison to other communities but it still dropped significantly along with most of California. Tom Sullivan, who has since moved his show to the big apple, was right on the money when he said our values increased to 40% which means that we had to come down at least 37% to achieve a normal market. According to current statistics Folsom is down 37% from Sept. 2005! So are we there yet?

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This past week I just listed a newer home in Coventry which is a small subdivision located less than a block away from Sheldon Park in the Natoma Station area. The beauty of this property is it’s proximity to shopping, transportation, schools and parks.

Some people think that just because you’re located close to those services that it must be a noisy neighborhood but this is a mistaken assumption. This particular property was recently re-sided with a 50 year cement siding that virtually makes the house soundproof. The house faces the court behind so there are no neighbors yards backing up to this and all you hear is the usual street sounds of a cul-de-sac.

One of the outstanding features of this home is the layout. The main floor utilizes the space well and the upstairs has three bedrooms with one designed for an office. The backyard has enough patio to entertain and is low maintenance. It’s hard to believe but this house is a fair market sale, no short sale, no bank foreclosure…just a regular listing.  So if you’re interested please view the video and give me a call to take a tour.

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A new group of cyclists is forming just in time to enjoy the spring weather in Folsom CA. For those of you haven’t been on a bike in years or are just learning about the trails in Folsom this will prove to be invaluable in many ways.

First of all, it will teach you about the trail system along the river and get you acquainted with  the area from a hands-on point of view.  Second, you will meet other cycling enthusiasts who share your excitement and who are about the same skill level. And third you will get the benefit of an experienced guide who can show you the ropes and make suggestions to enhance your ride.

Even though this ride is not technically a part of the Cycle Folsom group it is overseen by one of it’s experienced members. They schedule daily rides for the weekend warriors to day long distance rides for the seasoned cyclist. Another feature of this new riding group is that the pace is set by the slowest rider so there is no fear of not keeping up.

It meets at Bicycles Plus in Folsom, next to Karen’s Bakery at 10:30AM and will start at 11:00AM. It is scheduled to meet every Sunday and is open to all kinds of bicycles (except recumbent) and you must have a helmet and be 18yrs of age. Enjoy the spring weather and meet a new cycling friend!

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The return of Second Saturday  last night was a hit with local merchants enjoying the crowds and beautiful weather holding until this afternoon’s rain storm. The rain cleaned the air and left a beautiful double rainbow hovering over Sutter St. in historic downtown Folsom.

Another amazing feat is that parking on Sutter St. is possible. I actually found a place to park in front of  Hop Sing Palace last night! The rennovation  is starting to take shape and I’m looking forward to the finished product.

It’s been a pet project of the Folsom City Council to take the new century by storm and their goal to have the city completely wired just took another step towards that goal this week. According to the Sacramento Journal’s article  of  March 24, 2010, Folsom has submitted it’s application to be a test city for Google’s new high speed network. 

A few years ago the city council decided that since we are host to Intel, HP and other technology companies it only made sense to work towards complete WiFi readiness throughout  the town. (Intel has been a major player and driving force behind this project). So way back in Nov. 2005 the city began exploring it’s options with a feasibility study to determine  the best  wireless networks for our fair city.

The Wi-Max study is definitely a must read for the engineer types and I would love to know the conclusion as my eyes started to cross about 15 pages into the report, but in regards to the goal it seems the city has been divided up into a grid system that will eventually offer WiFi readiness throughout all neighborhoods. Couple that with Google’s new system and the residents just might enjoy an economic boost when they no longer have to pay an Internet provider.

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The 2009 season came to a close with Folsom Park winning the final game against Roseville’s Sierra View with a score of 2-1. The women’s 6.0 doubles team started with lessons from Ed Mitchell’s Bryan Solem and within three years managed to take Top Dog status at the Sacramento Area Tennis Association’s (SATA) competition.

First line Antonette Clark and Norma Thomson lost to Kerry Weinroth and Robby Denning 6-1,6-1. The third line of Ellen Desvarro and Christine Volker won 6-0, 6-2 against Joyce Bray and Angelen Simao. During the last game, Ellen Desvarro pulled her calf muscle and was unable to run leaving little room for error. The final tie-breaking game was won by Sandy Kennedy and Beth Mergens 7-5, 6-2 against Sierra View’s Betsy Newington and Liz Adkins.

Spring 2010 tennis season begins in March so if you’re looking for some great tennis and fun gals to play with email me with your information or go to the Top Dog site for more information about Sacramento area tennis.

Buyers already need the patience of Job to close a short sale which currently represents anywhere from 45-65% of all home purchases in our area. The statistics show that they take an average of 120 days to get to the negotiation stage in our area with an average closing another 30 days. Additionally, over 38% of recent home purchases were funded by FHA, which typically adds 15-30 days to close the transaction. What this adds up to is more frustration for anyone involved in the real estate market today.

For clarity, a short sale is subject to the lender approving the sale. MLS rules require that when the seller has accepted a short sale offer the listing has to be changed to a contingent status. Most real estate agents will not show contingent listings because once the seller has sent it to the bank for consideration it is essentially off the market to other buyers. The dirty little secret is that banks don’t really want to see more than one offer because they are overwhelmed with work, so agents oblige them by taking highest and best and keeping others in back up.

Adding more frustration for buyers are the new FHA requirements. News of increased down payments and higher mortgage insurance premiums doesn’t bode well for those using this type of financing.The beauty of an FHA loan is its “relaxed” standards for qualifying. The rates are typically a bit higher than a conventional loan but the credit score required is lower, making it easier for buyers to secure a loan. Since it is backed by the Federal government should the buyer default, it’s no wonder these loans soar in hard times. Recent news of FHA’s reserves nearing bottom has increased the conditions lenders are putting on buyers making it harder to secure these loans. Now is the time to strategize and take advantage of this program before congress increases the minimum down payment and interest rates.

One glimmer of hope I have experienced is the increase in Broker Price Opinion (BPO) requests from the banks and asset management companies. These opinions are used by the banks to gauge the value of a property in a given area. Once the bank determines the value of its asset, the property is then released for sale. The increase in BPO requests tells me that there are new REO’s (Real Estate Owned)  coming online within the next couple of months. This is good news for those buyers ready to purchase and even better news for brokers working hard to survive this market.