Real Estate & You

"Customer Service"? - An Open Letter to Chase Bank

2011-04-01T20:10:00.000-07:00

Hello Neighbors,

We rarely use this forum for anything other than updates, but here is something a bit different.

In a - now common - example of "customer service", take a read through this note about my relationship with Chase Bank (JPMorgan Chase).

Unfortunately, this is far too common in today's business world. Too common.

Want to avoid "service" like this? Come work with us! We will treat your family as you deserve.

Here you go - an open letter to Chase Bank:

Amazing Chase.

Stunning actually.

I have an account that has been open with you since 1987.

The account has changed hands several times as the banks have consolidated and merged. The last 3 steps were Great Western -> Washington Mutual -> Chase.

The account had $.02 in it.

A few years ago the checkbook was stolen. I was robbed when on a screening trip for rental property.

In discussion with you (as Washington Mutual at the time) we decided to keep the account open so we could watch for fraud.

Together, you and I decided to leave $.02 so we could do just that.

Then?

You took my two cents.

That's right.

You took my two cents.

The account has been in existence since the late 1980s – 24 years in total. It had $.02 in it. You took it.

Part of your new "$10 service fee" plan.

Some plan.

I have another small account with you in place today. Balance as I type this is a bit over $2100.

I will be pulling all of my money out of my accounts and ending my relationship with you. After 24 years.

Thanks a lot.

It's been going since the late 1980s, and you just killed our relationship - over two cents.

Nice job.

Customer service at it's finest.

You should be proud of yourselves.

I will broadcast this story heavily.

Jim Harris
Soon to be ex-Chase account owner.

WOW - 1 Million Homes Foreclosed On in 2010

2011-01-13T14:14:00.000-08:00

Hello Neighbors,

Take a look at this article from CNN:

http://www.bbc.co.uk/news/business-12184365

1 Million Homes. Foreclosed. 2010.

Jim

Closer Ties with Realtor.com

2010-11-23T20:16:00.001-08:00

Hello Neighbors, and Happy Thanksgiving !!!

Neighborly continues to tighten our relationship with user of Realtor.com.

It's the #1 property search engine, and an important method for us to reach out to new buyers. The relationship provides additional focus to your listings, and in addition to our "Showcase Listing" feature with Realtor.com really helps the Sellers we work with.

This new relationship also gives buyers in Rocklin and Granite Bay a quicker way to reach us, via new web sites and another toll free number.

Try these:

www.LivingInRocklin.com

www.MyRocklinHome.com

www.MyGraniteBayRealEstate.com

If needed, you can also use this toll free number to connect directly to Jim's cell phone:

(888) 902-1781

Give them a try, and spread the word!

Happy Holidays,

Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.PartnerWithNeighborly.com

The Galleria Fire

2010-10-25T10:22:00.000-07:00

Hello Neighbors,

Want to help with the Galleria?

A local company is hiring.

I dropped by their office twice yesterday and called them again this morning. Here is the article: http://cbs13.com/local/galleria.cleanup.hiring.2.1977182.html

I will let you know what I hear. As you know, our office is right across the street from the Galleria.

We also registered the URL www.GalleriaFire.com in hopes that we can use it for something productive in the near future. Right now the URL simply points to the Neighborly Financial web site.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.PartnerWithNeighborly.com

Neighborly Financial – Now Doing FHA Loans !!

2010-10-14T15:03:00.000-07:00

Hello Neighbors,

WELL DONE to John Graham and the Neighborly Financial team!

They received confirmation a few days ago that Neighborly Financial can now do FHA loans.

This is the conclusion of a 3 year plan to roll out more services to Neighborly Financial’s clients.

Neighborly Financial can now help you with:

• FHA
• Conventional Loans
• Jumbo Loans
• VA
• And a variety of other programs

Some industry experts estimate that over 50% of loans done today are FHA.

The steps required to get this certification are quite rigorous. Some agencies have had to post $250,000 security bonds to get this capability.

This opens up a huge new opportunity for your purchase and re-fi needs, and includes some loan products that hover around 97.5% financing!

Please do give Neighborly Financial a call for more detail.

Again, this is huge news and we congratulate the team!

- Jim

Blogging has been slow this summer, and we apologize. Why? The good news is that Neighborly continues to help and increasing number of clients with their real estate and lending needs, which limit "office" time. Client need is the #1 priority.

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.PartnerWithNeighborly.com

Employee Programs for HP, Intel, Apple, Yahoo, Weyerhaeuser, and More!

2010-06-22T10:14:00.000-07:00

Hello Neighbors,

Fun news.

Neighborly is now partnered with several different large companies in Northern California and the Bay Area. Most are tech companies, which happily takes us back to our previous lives...

Neighborly has been working for several months to get these relationships in place, and they've all gone live simultaneously.

Neighborly now offers special programs to employees of:

- Hewlett-Packard
- Intel
- Apple
- Oracle
- Microsoft
- Yahoo
- AMD
- Genentech
- KeyPoint
- Sony Playstation
- Levi Strauss
- Meriwest Credit Union
- CommonWealth Central

If you work for one of those companies, how do you get access to Neighborly's special employee programs?

Log into your employee discount portal and search:

a) Home & Garden > Real Estate category or
b) Finances & Money > Real Estate category

What is your employee discount portal called?

It could be different at each company. Examples:

1) HP's system is called "Passport”
2) Microsoft’s system is called “Benefits Prime”
3) Intel’s system is called “Vault”
4) Apple’s system is called “Passport Unlimited”
5) Weyerhaeuser's system is called "MyDiscount".

Contact your internal HR rep for help with your system.

Many thanks!

Jim Harris
Jim@NeighborlyRealty.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com

Rates Are at Their Lowest... Ever

2010-06-16T09:24:00.000-07:00

Insane.

Hello Neighbors,

Pulling some mortgage data for a client this morning. Rates are at 4.25% for a 30 year loan, and 3.75% for a 15 year loan...... 3.75% !!!!!!!!!!!

Stunning.

- Jim Harris

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com

Rocklin Inventory Update - 77 Homes, 90% are Short Sales

2010-06-07T15:30:00.000-07:00

Hello Neighbors,

I did a quick search for a client today, using some very high level criteria:

- 2000 to 2500 square feet
- $220,000 to $300,000
- 3 to 4 bedrooms
- 2 to 3 bathrooms
- 1990 or newer construction
- Single and Two stories
- Rocklin, Roseville, Granite Bay.

The results?

77 homes came up in the search.

Of those 77:

- 70 are short sales!
- 1 is a HUD / HomeSteps home
- 1 is bank owned (a foreclosure)
- the other 5 are in a variety of different statuses.

Over 90% of these homes are in Short Sale status.

Buyers - THANK YOU for sticking with us as we continue to work through the short sale offer and escrow processes.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com

Existing Home Sales Improve in April

2010-05-29T13:00:00.000-07:00

Hello Neighbors,

It's a VERY long article, but the data seems to be good news.

We are hearing economists talk about a potential "double dip recession"... we sure hope not. Technically though, we won't know until after the data gets reported.

Let's hope we see more of this.

Many thanks to NAR for the research,

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (making progress!)

Existing-Home Sales Continue to Improve in April
Washington, D.C., May 24, 2010

WASHINGTON (May 24, 2010) – Existing-home sales rose again in April with buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions, according to the National Association of Realtors®.

Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.

Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.10 percent in April from 4.97 percent in March; the rate was 4.91 percent in April 2009.

Total housing inventory at the end of April rose 11.5 percent to 4.04 million existing homes available for sale, which represents an 8.4-month supply2 at the current sales pace, up from an 8.1-month supply in March. Raw unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in July 2008.

“Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price correction appears essentially over,” Yun said. “In fact, a majority of the markets have seen price gains recently. A return to old-fashioned responsible lending and buying will help the housing market avoid disruptive and painful bubble-bust cycles.”

The national median existing-home price3 for all housing types was $173,100 in April, up 4.0 percent from April 2009. Distressed homes accounted for 33 percent of sales last month, compared with 35 percent in March.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buyer traffic is mixed. “It looks like the level of home sales that close in May and June will stay elevated, but many buyers remain in the market even without the tax credit,” she said. “Some Realtors® tell us they are very busy with clients who are entering the market now as a result of improved conditions, while others are welcoming a slowdown from frantic market conditions in recent months.

“Buyers are focused on finding the right house and taking advantage of favorable affordability conditions. For many buyers, owning a home is a lifestyle choice. They want a place of their own to raise a family, build memories, and be part of a larger community,” Golder said.

A parallel NAR practitioner survey4 shows first-time buyers purchased 49 percent of homes in April, up from 44 percent in March. Investors accounted for 15 percent of transactions in April, down from 19 percent in March; the remaining sales were to repeat buyers. All-cash sales stood at 26 percent in April; they were 27 percent in March.

Single-family home sales rose 7.4 percent to a seasonally adjusted annual rate of 5.05 million in April from a pace of 4.70 million in March, and are 20.5 percent above the 4.19 million level in April 2009. The median existing single-family home price was $173,400 in April, up 4.5 percent from a year ago.

Single-family median prices rose in 18 out of 20 metropolitan statistical areas reported in April from a year ago; six of the areas experienced double-digit increases. In data recently reported for the first quarter, 91 out of 152 metros saw price gains.

Existing condominium and co-op sales jumped 9.1 percent to a seasonally adjusted annual rate of 720,000 in April from 660,000 in March, and are 42.3 percent above the 506,000-unit pace in April 2009. The median existing condo price5 was $171,000 in April, which is 0.6 percent below a year ago.

Regionally, existing-home sales in the Northeast surged 21.1 percent to an annual level of 1.09 million in April and are 41.6 percent higher than a year ago. The median price in the Northeast was $243,000, up 2.1 percent from April 2009.

Existing-home sales in the Midwest rose 9.9 percent in April to a pace of 1.33 million and are 29.1 percent above a year ago. The median price in the Midwest was $146,400, up 5.8 percent from April 2009.

In the South, existing-home sales increased 8.6 percent to an annual level of 2.14 million in April and are 23.0 percent higher than April 2009. The median price in the South was $150,000, up 1.2 percent from a year ago.

Existing-home sales in the West fell 6.2 percent to an annual rate of 1.21 million in April but are 5.2 percent above a year ago. The median price in the West was $212,400, up 3.8 percent from April 2009.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

NOTE: NAR also reports monthly comparisons of existing single-family home sales and median prices for 20 select metropolitan statistical areas, which is posted with other tables at: www.realtor.org/research/research/ehsdata. For information on areas not included in the report, please contact the local association of Realtors®.

1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).

3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

4First-time buyer and distressed sales data are from the Realtors® Confidence Index.

5Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

Existing-home sales for May will be released June 22. The next Pending Home Sales Index is scheduled for

June 2; release times are 10 a.m. EDT.

Referral Needed: Virtual Tour Provider in Austin, Texas

2010-05-28T11:00:00.000-07:00

Hello Neighbors,

Yep, an odd request through this blog, but we need a hand.

We have the need to film virtual tours of a few different properties in and around Austin, Texas.

Our own team has been trying to create these, and they are doing a good job. We just aren't getting the "wide angle" view we need.

This is the level of quality we provide here for our listings, and what we are looking to achieve in Texas:

http://www.realtourvision.com/tour/RE/tour.view.new.php?utl=RE-5041-39RYKJ-01

If you know of anyone who produces virtual tours like this in the Austin area, please send me their contact information. Please also send a URL with example work (or have them send it) to Jim@NeighborlyRealty.com

Many thanks,

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (making progress!)

Coming Soon: 3500 Square Feet on an Acre

2010-05-27T11:00:00.000-07:00

Hello Neighbors - actual and virtual.

We are helping a family on our own street sell their custom home. We will likely go to market in July.

Approx 3500 square feet on an acre. If you are interested - or know someone in need of Auburn, California - please call me.

Not a short sale, not a foreclosure.

High quality neighbors guaranteed.

Many thanks,

- Jim

(916) 801.3940

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (making progress!)

Now Hiring: Full Time or Part Time "Dual Career" Agents

2010-05-27T10:33:00.000-07:00

Neighborly Realty is looking for agents, full time or part time "Dual Career".

Are you curious about what it's like to be a Realtor or how to become a Realtor?

Do you know of an agent that might be interested in talking to us about coming on board?

Please contact Neighborly's Kevin Grimes via Careers@NeighborlyRealty.com, or call Kevin directly at 916.747.6357.

Many thanks!

- Jim Harris
MBA, GRI, ASP, ePRO, CNE
(916) 801.3940

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (slowly making progress!)

See Neighborly Financial's YouTube Videos

2010-05-26T16:00:00.000-07:00

Hello Neighbors,

John has published the Neighborly Financial Q2 newsletter.

On the first page, he points you to a ton of videos stored out on YouTube.

Take a look:

The videos cover a variety of topics, and include:

* Getting pre-qualified for a loan
* The truth about advertised rates
* How to save money on a loan
* ...a few other topics.

Go into YouTube and search for "Neighborly" today.

Or, jump on the www.NeighborlyFinancialMortgage.com website and see the videos linked from there.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (making progress!)

Coming to Market Soon !!

2010-05-25T16:15:00.000-07:00

Hello Neighbors,

We've got a few homes coming to market soon, and a few short sales that need Buyers!

Please take a look at the flyer below and let us know if you have any questions.

Neighborly is representing property from Elk Grove to Grass Valley... and everywhere in between.

Should your family need help, we would like to help you with properly marketing your home.

...over 80% of Buyers find their homes this way - through the internet. Make sure you work with someone who knows technology.

Please call.

Many thanks.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (making progress!)

Homes Needed for These Buyers

2010-05-24T16:18:00.000-07:00

Hello Neighbors!

We need your help.

Neighborly is trying to help several families with home purchases. Due to the low inventory levels (and what is out there is mostly short sales), we are looking for your help.

If you have a need to sell, or know someone who is thinking of selling - please pass the flyer below to them. You can simply pass this blog URL.

If you would like an emailed copy of this flyer, please drop me a note.

We all thank you for your assistance - Neighborly and the families we are helping.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (making progress!)

Neighborly's KidsFest Update

2010-05-24T15:56:00.000-07:00

Hello Neighbors,

GREAT fun a week ago at KidsFest in Rocklin.

The event came off really well. Over 1,000 people passed through the grounds during that 4 hour period.

For those of you who signed up for the free Hewlett Packard printer?

We have a winner! Marla Hall of Citrus Heights. Congratulations Marla! Kevin from our team will be contacting you shortly.

For those of you who signed up for the free CMA (Competitive Market Analysis) of your home, the team will be contacting you shortly as well. That research is equivalent to a “mini-appraisal”.

If any of your friends or family would like a CMA review, please let us know! We’re happy to help.

Neighborly is a Northern California based company and appreciates your support,

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (making progress!)

"Strategic Defaults" - Borrowers Who Can Afford Their Homes, but Walk Away

2010-05-10T12:54:00.000-07:00

Hello Neighbors,

60 minutes did a story last night on something we see in this business on a daily basis.

"Strategic Defaults". When a home owner CAN afford their mortgage, but they decide to walk away from their home and let it go to foreclosure.

Here's the link:

http://www.cbsnews.com/video/watch/?id=6470184n

Although I agree with the depression-era view - that losing your house is the last straw - it's clear not everyone else does.

Regardless of your moral or ethical view of this trend, the economic impacts are something to find concerning. We simply don't have economic models for this behavior.

We know banks are sitting on foreclosed homes and not releasing them to the market. If 1 of every 5 upside down borrowers is choosing to walk away, then the foreclosure rates are going to continue to be record setting for years to come.

If you need to short sell, give Neighborly a call.

Please don't walk away. We can help you protect your financial future by doing the right thing.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (making small steps forward)

Neighborly Supports the "Tour de Cure" 100 Mile Bike Fund Raiser

2010-04-30T20:38:00.001-07:00

Hello Neighbors!

Good fun.

Neighborly Realty & Neighborly Financial will be supporting the "Tour de Cure" 100 mile bicycle ride and fund raiser tomorrow, May 1st.

Here is the link:

http://main.diabetes.org/site/TR/TourdeCure/SacramentoArea?pg=entry&fr_id=6898

Neighborly's own Jeff Engle will be driving a support vehicle during the middle of the event!

Visit the web site, come out to the course, and come support the American Diabetes Association!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (check back in Mid May)

Latest Data is Out - Sales are UP.

2010-04-29T11:27:00.001-07:00

Hello Neighbors,

Hopefully this graph of existing home sales will come across well. If not, call me for the data.

What I find amazing is the ratio of homes that have gone PENDING (in escrow) vs. the amount that are on the market. It's gone nuts in the last month or two.

PENDINGs were at a record 2,921 in March - that is several hundred higher than any month since 2008.

While homes on the market have increased at a much slower pace (only 3,963 for the same March measure).

Meaning? There are segments of the market that are absolutely now a "Seller's Market". ...which is how we operated between 2002 - 2005.

Here is the data:

Many thanks,

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly.com

Approved Short Sale - Buyer Walked !!

2010-04-23T08:50:00.000-07:00

Hello Neighbors,

We don't usually use this space for updates about just one listing, but this is a special opportunity.

After months of negotiation, we have short sale approval at $146,400 for an Elk Grove property. ...and the original buyers have walked away!

If needed, a new buyer could likely close in 30 days.

We call this the "sweet spot" of short sales - the lender has approved the terms and conditions (which takes MONTHS) but the original offers have moved on. Now the property is ready for another potential buyer - and that buyer won't have to wait months!

Some basic details:

$35,082 Spent in Installed Builder Options !!!!

• 2 Bedrooms, 2 Separate Bathrooms, and a 1 Car Garage Included !!
• Great Room Concept with Kitchen + Living Room + Nook
• 1,239 Square Feet on this Quiet Second Floor
• Quality DR Horton Construction – Completed in 2007 – with DR Horton’s Ultra-Efficient “Environments for Living” Options, Meaning Very Low Utility Bills
• Outdoor Balcony / Patio for your Barbeque, Table + Chairs
• Upstairs Laundry
• Maple Cabinets, Built In Entertainment Center, and Fireplace!
• Granite Counter Tops in Kitchen
• Pre-Wired for Security Systems
• Upgraded 18” x 18” Tile Flooring Throughout
• Maytag Stainless Steel Appliances
• Upgraded Window Treatments, Including 3.5” Plantation Shutters
• Upgraded Carpet and Carpet Pad
• Maple Stair Rail, and Elegant Wood Framed Stairs
• Additional Storage Fixtures in Garage
• Upgraded Sinks and Faucets, Shower Doors Too!

MLS #10006472

We put a few pictures in Craigslist at this URL: http://sacramento.craigslist.org/reb/1706281642.html

Please let us know if we can help!

Many thanks,

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.PartnerWithNeighborly.com (Good video content, web site needs work)

Neighborly Joins Tahoe Sierra Board

2010-04-21T10:29:00.000-07:00

Hello Neighbors,

Neighborly joined our 4th Realtor board today, the Tahoe-Sierra board.

If interested, their web site is: http://www.tahoemls.com/index.cfm

Neighborly is now officially part of:

* Placer County Association of Realtors
* Sacramento Association of Realtors
* Nevada County Association of Realtors
* Tahoe Sierra Association of Realtors.

Why?

We have another client who needs better information in the Tahoe area than the "standard" Placer County and Nevada County MLS systems provide. The Tahoe area is on a smaller MLS system than the rest of the nearby counties. They are supposed to list properties in the major MLS systems too, but we are done fighting that battle.

So?

Should you need help with vacation property in Tahoe, or even your primary residence in Tahoe, we now have even better information.

Many thanks,

- Jim

www.NeighborlyRealty.com

www.NeighborlyGroup.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly.com (Good video content, but web site in development)

Win a 5 Bedroom Home in Rocklin !!

2010-04-19T09:27:00.000-07:00

Hello Neighbors,

What a fantastic opportunity and for a wonderful cause.

For a $100 entry ticket, your family could win a 5 Bedroom home in Rocklin. Yep. 3,096 square feet. Free. Built by Standard Pacific Homes. The address is already set - 2122 Ranch View Drive in Rocklin's Whitney Ranch.

This is made possible through a St. Jude charity program.

Here is the link: http://www.stjude.org/stjude/v/index.jsp?vgnextoid=2360a4095bd67210VgnVCM1000001e0215acRCRD&vgnextchannel=61d5dc15925b0210VgnVCM1000001e0215acRCRD

The drawing is on June 27th.

Don't act too quickly though - Jenny and I haven't bought our tickets yet!

Good luck.

Please do invite Neighborly to the housewarming party!

More about St. Jude and their children's programs: http://www.stjude.org/stjude/v/index.jsp?vgnextoid=f2bfab46cb118010VgnVCM1000000e2015acRCRD

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly.com (GOOD video content, but website really hurting)

US Q1 Foreclosure Rates Grew at 35% over Q1 Last Year

2010-04-16T09:00:00.000-07:00

Many thanks to Paul Smith for passing this along.

Hello Neighbors,

From Yahoo yesterday.

Disapointing data on the foreclosure rates. Lots of detail below. One point of importance at the very bottom:

>>> California accounted for the biggest slice overall of homes facing foreclosure - roughly 23 percent of the nation's total. One in every 62 properties received a foreclosure filing in the first quarter. <<<

Neighborly has signed up with a Chicago based company to help sell foreclosed homes. We don't have insight yet on timeline on volumes, but watch this space for future updates.

By ALEX VEIGA, AP Real Estate Writer Alex Veiga, Ap Real Estate Writer - Thu Apr 15, 7:32 am ET

LOS ANGELES - A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.

RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.

More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when RealtyTrac began reporting the data, the firm said.

"We're right now on pace to see more than 1 million bank repossessions this year," said Rick Sharga, a RealtyTrac senior vice president.

Foreclosures began to ease last year as banks came under pressure from the Obama administration to modify home loans for troubled borrowers. In addition, some states enacted foreclosure moratoriums in hopes of giving homeowners behind in payments time to catch up. And in many cases, banks have had trouble coping with how to handle the glut of problem loans.

These factors have helped slow the pace of foreclosures, but now that trend appears to be reversing.

"We're finally seeing the banks start to process the inventory that has been in foreclosure, but delayed in processing," Sharga said. "We expect the pace to accelerate as the year goes on."

In all, more than 900,000 households, or one in every 138 homes, received a foreclosure-related notice, RealtyTrac said. The firm based in Irvine, Calif., tracks notices for defaults, scheduled home auctions and home repossessions.

Homeowners continue to fall behind on payments because they've lost their job or seen their mortgage payment rise due to an interest-rate reset. Many are unable to refinance because they now owe more on their loan than their home is worth.

The Obama administration's $75 billion foreclosure prevention program has only been able to help a small fraction of troubled homeowners.

About 231,000 homeowners have completed loan modifications as part of the Obama administration's flagship foreclosure prevention program through March. That's about 21 percent of the 1.2 million borrowers who began the program over the past year.

But another 158,000 homeowners who signed up have dropped out - either because they didn't make payments or failed to return the necessary documents. That's up from about 90,000 just a month earlier.

Last month, the administration expanded the program, launching a plan to reduce the amount some troubled borrowers owe on their home loans and give jobless homeowners a temporary break. But the details of those programs are expected to take months to work out.

The states with the highest foreclosure rates in the first quarter were Nevada, Arizona, Florida and California, with Nevada leading the pack, RealtyTrac said.

Rising home prices and speculation fueled a wave of home construction there during the housing boom. But now the state, particularly around the Las Vegas metropolitan area, is saddled with a glut of unsold homes.

Still, the number of homes in Nevada that received a foreclosure filing dropped 16 percent from the first quarter last year.

All told, one in every 33 homes in Nevada was facing foreclosure, more than four times the national average, RealtyTrac said.

Foreclosure filings rose on an annual and quarterly basis in Arizona, however.

One in every 49 homes there received a foreclosure-related notice during the quarter.

Florida, meanwhile, posted the third-highest foreclosure rate with one out of every 57 properties receiving a foreclosure filing.

California accounted for the biggest slice overall of homes facing foreclosure - roughly 23 percent of the nation's total. One in every 62 properties received a foreclosure filing in the first quarter.

Thanks again Yahoo.

- Jim

www.NeighborlyGroup.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyRealty.com

www.PartnerWithNeighborly.com (GOOD video content, yet the site is still a mess)

Rocklin Hosts "KidFest" on May 16th

2010-04-14T09:00:00.000-07:00

Hello Neighbors!

Join us this May 16th from Noon to 4:00 at Rocklin's "KidFest"!

http://kidsfestnorcal.com/

For young families, this should be a kick. Not only are there tons of kid and family friendly vendors, but there will be activities for the kids... You can even register for a mini-triathlon.

See you there!

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly.com (early in development)

Neighborly Becomes Realtor.com Preferred Supplier

2010-04-07T22:16:00.000-07:00

Hello Neighbors,

Exciting times indeed.

Neighborly has partnered with Realtor.com (www.Realtor.com) to help California Buyers searching in Granite Bay and Rocklin!

Realtor.com is the #1 search engine used for Real Estate in the United States. Not a bad partner to have!

Click on these links below to try the Realtor.com "Search Assist" program now:

Granite Bay:

http://www.realtor.com/#searchassist&loc=95746&advid=844067

Rocklin:

http://www.realtor.com/#searchassist&loc=95677&advid=844067

http://www.realtor.com/#searchassist&loc=95765&advid=844067

Please let us know how we can help you and your families.

Enjoy!

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly (EARLY in Development)

Interest Rates are Moving Up!

2010-04-02T09:45:00.000-07:00

Hello Neighbors,

March 31st was the last day of the Federal program to buy mortgage backed securities. That is the program that has been removing the bad loan debt from the market at an enormous rate. It’s been going for well over a year now, and we know it’s been keeping mortgage interest rates artificially low.

Yesterday was the first day without this program in effect, and guess what?

We are already seeing rates jump. Yesterday they went up a quarter of a point.

Overnight? Some rates aren’t even available now. A few days ago, a client could buy down a rate to the low 4 percents. Now? We can’t even get access to those low 4 percent rates. Buying down will get you into the mid or high 4 percents.

Hmm.

While movement on any day is expected, the move by the Fed in general is signaling that interest rates are going up.

While we have all expected this, to what degree they will change (go up) is anyone’s guess.

Buyers? Be alert.

Re-financing? Get busy.

Many thanks,

- Jim

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.PartnerWithNeighborly.com

3rd Neighborly Business Under Way!

2010-04-01T08:39:00.000-07:00

Hello Neighbors,

Exciting times here at Neighborly!

The real estate company has been up and running since 2002.

The mortgage loan company has been up and running since 2007.

It's time to start something new!

In a few days we launch the new "Neighborly Gas & Sip"! Yep, a convenience store that is truly Neighborly. High quality gasoline, high quality slurpees. Tasty salted snack treats. We'll have a lotto kiosk sitting next to a Neighborly Financial loan officer. Win the big draw, and immediately finance your castle.

The first location will open in Roseville in The Fountains.

Branches two and three will be in Des Moines, Iowa and Puerto Rico.

Enjoy.

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly.com

Suspension of National Flood Insurance Program

2010-03-30T21:34:00.000-07:00

Hello Neighbors,

This just in from our friend Chris Altobell with Farmers Insurance. It looks like buyers in Natomas may have a few extra hiccups:

Hi Jim,

The National Flood Insurance Program has been suspended; meaning new flood policies cannot be issued. This will likely have an impact on your clients looking to close escrow on a house in the Natomas area (or any other area) where flood insurance is required by the lender.

The flood program will not be reconsidered for extension until the Senate resumes its session on April 12th.

Here’s why it is being suspended:

1) The proposal for extending the flood program is part of a larger package of programs that are under consideration for extension. There is opposition to extending some of the other programs, not the flood program.

2) There are many in Congress who want to make reforms before granting a long-term extension to the flood program.

I’ll keep you posted on any further changes.

Cheers,

Chris

Have questions?

Chris can be reached at the following:

Altobell Insurance Agency
1700 Eureka Rd., Ste 120
Roseville, CA 95661
(916) 797-0990 (office)
(916) 214-2126 (cell)
www.farmersagent.com/caltobell

Thank you Chris for the updates!

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly.com

California Extends Buyer Tax Credits !!!!!!!!

2010-03-25T15:56:00.000-07:00

Hello Neighbors,

This JUST in... literally, not 30 seconds ago.

It looks like California is extending Buyer tax credits past the existing April / June deadline!

I will dig into the mechanics of the legislation more in the coming days, but here is the note we just received from the California Association of Realtors:

Dear C.A.R. Member:

I’m gratified to report that late this afternoon, Gov. Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law. His actions today are the result of our efforts in Sacramento over the last several weeks as members and our team in the capital worked for the bill’s passage before it landed on the governor’s desk.

AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to C.A.R. research conducted last year.

The state’s previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner. Unlike last year’s legislation, AB 183 adds a tax credit for the purchase of an existing home by a first-time home buyer.

AB 183 will significantly contribute to the effort to stimulate jobs-creation within California's housing market by helping to incentivize first-time home buyers to purchase homes that have been abandoned, foreclosed upon and returned to the lender, or have been sitting on the market for extended periods of time. It is these homes that will require substantial rehabilitation by the new owners, which will in turn generate a tremendous increase in jobs and accessory purchases connected to home improvement activities.

Your Association’s efforts at the state and federal level to help protect private property rights and your right to conduct business are ongoing. This promises to be another busy year in the state legislature and in Washington, D.C.

If you’re not already involved in the political process, I encourage you to do so. You can go to http://www.car.org/governmentaffairs/getinvolved/ for a quick guide to involvement opportunities at the local, state, and national levels.

Sincerely,

Steve Goddard
2010 President
CALIFORNIA ASSOCIATION OF REALTORS®

Woo Whoo!

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly.com

Neighborly Welcomes Noelle Pitts to the Team !!

2010-03-24T10:49:00.001-07:00

Hello Neighbors!

It's been a GREAT week here at Neighborly!

The real estate team added a fine young lady to the group - Noelle Pitts.

Noelle comes to us with experience, and from one of the larger "corporate" brokerages. She got tired of the high costs of doing business with the large shops, and wanted to focus more on the customer experience - 1000% the Neighborly Way!

Welcome to the team Noelle, and thank you for spending your time with Neighborly!

If any of you need help, Noelle is full blast as of a few days ago. You can reach her at 916.600.7665. You can also email Noelle directly at Noelle@NeighborlyRealty.com

Woo Whoo!

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly.com

Appraisal Problems (Again)

2010-03-24T10:35:00.000-07:00

Hello Neighbors,

More insanity with appraisals.

As we are seeing with just about every appraisal these days, the values are out of sync with the market. It doesn't matter if the appraisal is for one of our real estate clients or for one of our partner company's loan / re-fi clients.

On May 1st of last year, the government changed the regulations governing the appraisal industry. The regulation is known as “HVCC” – Home Valuation Code of Conduct. We are now getting appraisers from out of the area doing appraisals in areas

Here is a bit of background on the appraisal changes over the last year and a half:

My own experiences:

http://neighborlyrealty.blogspot.com/2009/08/are-appraisals-useless.html

http://neighborlyrealty.blogspot.com/2009/08/where-is-bottom-how-about-here.html

http://neighborlyrealty.blogspot.com/2009/01/industry-cleanup-part-2.html

Thoughts from the industry in general:

http://www.tampabay.com/news/business/realestate/article1001295.ece

http://www.hvccpetition.com/

http://www.realphoenixliving.com/2009/06/26/a-few-mortgage-thoughts-for-the-week/

From the National Association of Mortgage Brokers:

http://www.namb.org/Forms.asp?MODE=NEW&Forms_FormTypeID=-29

Our latest appraisal came in at roughly $11,000 below our offer price.

The appraiser isn't a high performer. He has used one comp that is bank owned property (that isn’t truly “like kind”).

What does it all mean?

If you are putting a large sum of cash into the process, then the appraisal value isn't as much of a problem. If you are using a high loan to value ratio, then you may be in trouble - having to renegotiate the contract, get additional appraisals, or a few other steps.

Remember - the valuation is more of a “comfort” level for the Buyer / Borrower. The appraisal isn’t used by any other entity – it’s not used by the County to determine your taxes, it’s not used by the home owners insurance company to determine value, it’s not used by any other group in this process.

I think my clients are getting this particular home at a good price (or I wouldn’t let us proceed).

Recourse?

Nope. We still don't have effective channels to provide feedback on appraisals or appraisers.

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.PartnerWithNeighborly.com

Infamous Sacramento Landmark Up for Sale

2010-03-03T12:34:00.001-08:00

Hello Neighbors,

This is a bit morbid, but an important part of downtown Sacramento real estate history.

1426 F St Sacramento, CA 95814

MLS# 10015576

List price is currently $309,800. It is bank owned (Bank of America), meaning the last buyers (who paid $560,000) defaulted.

This duplex has a very sad history. Back in 1988, this duplex was owned by a lady named Dorothea Puente.

This property comes with a ton of disclosures, including photocopies of the newspaper articles.

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

Toll Free 1-800 Recorded Mortgage Loan Information

2010-02-02T08:31:00.000-08:00

Hello Neighbors!

This one is fun...

John and his team are at it again. Using technology to get information out fast and free.

He has recorded 5 new messages (each just a minute or two long) and put them out on our toll free service line.

Give them a try and let us know what you think.

The Neighborly toll free number is 1-800-960-0860.

Extension numbers and topics are as follows:

• 8000 – How Do I Take Advantage of the Buyer Tax Credits Before April?
• 8100 – How Do I Pick the Right Lender?
• 8200 – How Do I Get Pre-Approved for a Loan?
• 8300 – How Do I Get the Best Rates on a Loan?
• 8400 – Is My Current Loan Worth Re-Financing?

Many thanks for support Neighborly.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyGroup.com

FHA Announces Changes to Lending Policies: More Mortgage Insurance

2010-01-20T15:24:00.000-08:00

Hello Neighbors,

FHA just announced some big changes.

Why is this important?

FHA drives the standards for loan qualification that many of the large lenders adhere too. FHA backed loans are also a major percentage of all loans underwritten in this current market.

FHA loans are popular when times are tough. When lending is easy? FHA fades into the background. No more. The lending practices of 2000 – 2005 have pushed FHA back into control.

What does this mean?

• Loans will be a bit more expensive for the borrower, for those who finance more than 80% of the purchase price.
• Sellers can expect a reduction in requested concessions – no longer will the Buyers ask for 6%. It’s now limited to 3%.
• A few other technical issues that will make loans a bit harder to qualify for.

Here is the detail from the FHA:

FHA ANNOUNCES POLICY CHANGES TO ADDRESS RISK AND STRENGTHEN FINANCES

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”

Announced FHA Policy Changes:
1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
a) The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
b) If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
c) This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
d) The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

2. Update the combination of FICO scores and down payments for new borrowers.
a) New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
b) This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
c) This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

3. Reduce allowable seller concessions from 6% to 3%
a) The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
b) This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

4. Increase enforcement on FHA lenders
a) Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
a1) This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
b) Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
b1) Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
b2) This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
c) Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
c1) Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
d) HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
d1) Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
d2) Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

Many thanks,

- Jim

www.NeighborlyFinancial.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyRealty.com

www.NeighborlyGroup.com

MOVIE: What is My "FICO Score" (Your Credit Score)

2010-01-19T13:50:00.000-08:00

Hello Neighbors,

Again, more educational material from the team at Neighborly Financial.

You may have heard the term “FICO score” before… You’ve certainly heard the term “credit score”. What are they? Are they different? How are they calculated, and how can I improve mine?

Watch this video and find out how your credit score matters, and how the actions you take can impact that score:

http://www.youtube.com/watch?v=TfUa_vQuTXQ

Need more information? Call John Graham at 916.799.4336 or email John at JohnG@NeighborlyFinancial.com

Many thanks,

- Jim

www.NeighborlyFinancial.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyRealty.com

www.NeighborlyGroup.com

MOVIE: What is my Loan’s “APR” and Why is it Higher Than Interest?

2010-01-19T13:36:00.000-08:00

Hello Neighbors,

Again, more educational material from the team at Neighborly Financial.

This time - what is "APR"?

Like interest, you will see this number quoted in your mortgage (purchase or re-fi) Good Faith Estimates. Unlike interest, it isn't totally clear how this number was created.

Watch this video and find out why APR is often higher than the interest rate you've been shopping for:

http://www.youtube.com/watch?v=5fiHr_Hw9h0

Many thanks,

- Jim

MOVIE TIME: Pre-Qualification vs. Pre-Approval

2010-01-19T13:26:00.000-08:00

Hello Neighbors,

Our team at Neighborly Financial is at it again – creating more consumer education videos to help you make informed mortgage decisions.

Again, be gentle.

The content is fantastic, but we aren’t movie stars. Brad Pitt has nothing to fear.

Should you need more insight, please contact John Graham at 917.799.4336 or email JohnG@NeighborlyFinancial.com

This first movie: What is the difference between a Pre-Qualification letter and a Pre-Approval letter.

What are the process differences between the two, and which should you ask for?

Why does your Realtor need this data up front before you start looking for houses?

Please take a look and let us know what you think:

http://www.youtube.com/watch?v=4jQQBhtqjiA

Many thanks,

- Jim

www.NeighborlyFinancial.com

www.NeighborlyFinancialMortgage.com

www.NeighborlyRealty.com

www.NeighborlyGroup.com

Neighborly in Kaneva

2010-01-08T10:56:00.001-08:00

Hello Neighbors, and "virtual neighbors",

We aren't sure how it works yet, but we took the leap into a very popular "virtual world" called Kaneva:

http://www.kaneva.com/channel/Neighborly.channel

Some of our younger clients have mentioned this a few times... so why not?

If you are in Kaneva, look us up!

Many thanks,

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Help Us With the Next Neighborly Web Design !

2010-01-06T09:11:00.000-08:00

Hello Neighbors,

Do you have some graphic artist skills?

Do you create pages for the web?

Want to participate in a design contest?

If so, take a look at www.99Designs.com and search for Neighborly.

We are sponsoring a contest to design the next version of the "Neighborly Group" website. The contest will run for a week.

On that site, click on "Browse Projects" then enter "Neighborly" in the keyword field.

Thanks for the help!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Land Banking: Time to re-Start ??

2009-12-28T20:31:00.000-08:00

Happy Holidays Neighbors!

May 2010 bring you health and prosperity.

Tomorrow, Jenny and I are going to look at vacant land in a couple of the resort areas in California's Plumas County. We've been watching that area for 11 years now. Jenny's family has owned property there for at least 25 years.

That market has bottomed, and it's time to consider "land banking" an investment lot or two for the near future. Property in some of these locations are selling at less than 20% of market value from a few years ago. If you can sit and fund the HOA dues, this should create healthy returns four or five years out.

This isn't nearly as risky as the "Winchester" development outside of Auburn, California. We've done background checks on their financials and market plans.

Call if you want to discuss.

Again, happy holidays from everyone at Neighborly!

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Movies! Watch these Videos on Loans

2009-12-17T12:53:00.000-08:00

Hello Neighbors,

The Neighborly Financial team is at it again.

Home financing is a tough process, especially in this market. The NF team recently created a few new YouTube movies to help educate and inform.

Take a look when you get a moment.

How To Get the Best Interest Rates:

http://www.youtube.com/watch?v=sLvr5O8SQNg

Pre-Qualify for a Loan:

http://www.youtube.com/watch?v=BOzIyFwmCMw

Choosing the Right Lender:

http://www.youtube.com/watch?v=45XPlKJDEs4

Our video production staff is top notch, but our budget isn't - so please be kind !!

Many thanks, and enjoy the videos. Please do share with friends and family.

Should you need more information (or want to talk to our in-house movie star), John can be reached at 916.799.4336

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

New Consumer Help Web Site from the National Association of Realtors

2009-12-16T09:23:00.000-08:00

Hello Neighbors,

This just out from NAR (the National Association of Realtors). The new web site is still in beta (test) mode, but try it if you'd like and share your feedback. We've linked it to the blog via the section to the right called "TOOLS".

Here's the site: www.Realtor.org/HouseLogic

Here's its purpose:

To bring ideas and content to homeowners - and future homeowners - for improvement projects, clean living, energy savings ideas, tax savings, refinance concerns, and a variety of different topics.

NAR is trying to make home ownership an better understood process, and provide solutions to those who need a hand in projects that involve your own real estate.

My thoughts:

I like the content around tax breaks and energy / green alternatives. The "manage a project" engine is interesting, but time will tell if you find it useful (let me know!).

Enjoy!

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Home Sales Up Again - 2010 Looks Promising

2009-12-15T11:11:00.000-08:00

Hello Neighbors,

GOOD news from our friends at NAR (the National Association of Realtors). They posted this content recently, and we thank them for their insight.

"Pending" ("used" homes, not new construction) home sales have been up for 9 months in a row now. 2009 is almost done, and I think we will look back on it as the start of the recovery - or at least the end of the slide.

Impacts to you?

Buyers? 2010 could be competitive.

Sellers? 2010 will see stability in your home values, and increases in value for certain price ranges / market segments (especially first time buyer homes).

Here is the NAR report:

Nine Consecutive Gains for Pending Home Sales

Washington, December 01, 2009

Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. "Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus," he said. "This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.

The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.

Yun cautioned that home sales could dip in the months ahead. "The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.

"Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families," Yun said.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Existing-home sales for November will be reported December 22 and the next Pending Home Sales Index will be on January 5; release times are 10 a.m. EST.

Many thanks,

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Thinking of Selling in 2010? Use a Certified Negotiation Expert !!

2009-12-15T10:00:00.000-08:00

Hello Neighbors,

2010 feels good. OK, it's not here yet, but it sure feels like it has promise.

If you need to sell next year, do your best to protect your family and your financial interests - higher a Certified Negotiation Expert (CNE).

The CNE is the designation recognized by the National Association of Realtors as the premier training mechanism for negotiation strategy.

Need a compelling reason to call? How is this statistic: To date, only 7,000 Realtors and Brokers across the United States (of the 1,300,000 Realtors nationwide) are CNE trained. That’s less than 1% of the Realtors out there.

Do you want to work with the best 1% in the business, or the other 99% who treat your sale – your most important financial step in life – as simply another transaction?

Make sure you use a CNE! To learn more about the CNE credentials, click here: http://www.negotiationexpertise.com/benefits.php

I've had over 7 years of formal business school (BS and MBA degrees). NONE of those programs covered negotiation as well as this certification program.

When the time comes to sell, or if you know someone who is thinking along these lines, make sure to consider hiring a Certified Negotiation Expert (CNE).

Let's make 2010 great,

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Planning to Purchase in 2010? Try to Act before April 30th - TAX Credits !!

2009-12-15T09:33:00.000-08:00

Hello Neighbors,

If you are planning to buy a home (your first, or a "trade up"), you may want to start the process before April of 2010.

Tax Credit for First-Time Homebuyers

FTHBs (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Homeowners

The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.

What's So Important About a "Tax Credit"?

The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction", or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Home financing is never an easy thing to wrap your head around. It seems like there is an ocean of financing options available for buyers these days, and it's incredibly hard to figure out which option is right for you. Not every financing option works for all people, it's important to have a trusted and experienced real estate team leading you through the home buying process. There is no doubt in our mind we can guide you through your home financing and provide you with the best options.

We would love the chance to talk about what it takes to buy a home in today's marketplace and what sort of financial options are available to you. Neighborly Realty's partner "Neighborly Financial" has access to loan products from dozens of lenders. When the two companies are able to combine services for the same client, the savings to that client are in the THOUSANDS of dollars.

Please call or email with any questions or concerns or just to talk about your real estate options. We look forward to hearing from you.

Happy Holidays,

Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Sacramento County Sales Statistics

2009-11-20T13:45:00.000-08:00

Hello Neighbors,

My apologies for the drop in blog activity.

We are just coming back up to speed after Strep Throat and Scarlet Fever ran through the household. Not much fun!

Blog activity will probably be slow until early December too, as we will be with family for Thanksgiving.

HAPPY THANKSGIVING to all of you!

Here's one bit of market data to keep you going...

In Sacramento County for the last month - 25.2% of home sales were funded with all cash. Roughly 27.6% of home sales were with FHA first time buyer type loan products.

39% of homes were bought with conventional loan products (likely using standards driven by FHA).

What does it mean?

A bit over half of the activity last month was a continuing battle between investors and first time Buyers.

I'm pulling for the first time Buyers!

Again, Happy Thanksgiving,

Jim

www.NeighborlyGroup.com

www.NeighborlyRealt.com

www.NeighborlyFinancial.com

$6500 Buyer Tax Credit to Existing Home Owners !!

2009-11-05T21:09:00.000-08:00

THANK YOU Kat !!

Hello Neighbors,

This note comes to us from our good friend Kat Fiorentino at First Priority.
As you read in this blog a few days ago, the $8000 first time buyer tax credit was extended until April of next year.

.....and now? A tax credit for anyone buying a home – it doesn’t matter if you are a first time buyer or a current owner trading up!

YES - you can take advantage of these insanely low prices and interest rates, "Trade Up", and get money back from the federal government.

Details from Kat’s message are below. Thanks again Kat!

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and the White House said President Barack Obama would sign it Friday.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.
"This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that was included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.

"We are still in a world of economic hurt, and Congress must continue to act boldly and creatively," said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. "With the right mix of tax breaks and investments we will get through this recession and get folks working again."

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.

"For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home," Bond said. "And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place."

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.

The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break — for companies with revenues of $15 million or less — in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.

The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.

"It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns," said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.

The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.

The bill is H.R. 3548.

Woo Whoo!

2010 is going to be on fire!

- Jim

www.NeighborlyRealty.com

www.NeighborlyGroup.com

www.NeighborlyFinancial.com

First Time Buyer Tax Credit Extended

2009-10-29T14:18:00.001-07:00

HELLO Neighbors !!!

GREAT news today!

The first time buyer tax credit is getting extended. Buyers have to be in contract by the end or April.

For us car guys, "Cash for Clunkers" was fun... but we knew it would only spur short term demand and sales volume upticks. THIS? This is how you bring the economy back!

From the Wall Street Journal:

By COREY BOLES and JOHN D. MCKINNON

WASHINGTON -- Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.

The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting.

Many property experts have cited the credit as a reason for signs of recovery in the housing market in recent months. But that recovery was somewhat undercut by the September drop in new-home sales reported Wednesday.

The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts.

.While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. Senate Majority Leader Harry Reid (D., Nev.) hopes to add it to a bill currently on the Senate floor to extend federal unemployment insurance benefits. But agreement on that hasn't been finalized.

While Senate Republicans are likely to support the measure, House Democrats have raised concerns that it carries a high cost to the government. The Internal Revenue Service is examining the program for alleged abuse.

Thank you Wall Street Journal for the content!

This is wonderful and fantastic news.

- Jim

www.NeigborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Home Values in California to RISE in 2010 !!

2009-10-27T09:55:00.000-07:00

Hello Neighbors,

A great update from CAR (California Association of Realtors) economists!

This echoes what we've been saying (and hoping) for the last year - 2010 should be a year of recovery, although some significant unknowns still exist (bank owned homes, Fed bailout programs).

Thank you CAR for the data!

LOS ANGELES (Oct. 7) –“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said C.A.R. President James Liptak. “This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.”

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) "2010 California Housing Market Forecast" will be presented this afternoon during CALIFORNIA REALTOR® EXPO 2009 (www.realtorexpo.org), running from Oct. 6-8 at the San Jose Convention Center in San Jose, Calif. The trade show is expected to attract more than 7,000 attendees and is the largest state real estate trade show in the nation.

“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to the forecast. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.

“Housing in California has become a tale of two markets,” Liptak said. “The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes for sale. Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their concerns about where prices are headed. While demand from first-time buyers for low-end properties will continue throughout next year, sales could be impacted if discretionary sellers do not return to the market by the second half of 2010.

“2009 marked a unique opportunity for first-time home buyers,” Liptak said. “Homes were more affordable than they have been in years, interest rates hovered near historic lows, and the federal tax credit helped more than 1 million people become homeowners nationwide. Now is the time for Congress to extend the federal tax credit and to expand it to all buyers, not just first-timers.”

“With distressed properties accounting for nearly one-third of the sales in 2010, inventory will be relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season,” said C.A.R. and Vice President Leslie Appleton-Young. “We expect the median price to decrease slightly through the remainder of 2009 and into next year, then rise before leveling off next summer. For the year as a whole, home prices are forecast to reach $280,000.”

“Although it appears at this time that lenders are closely monitoring the flow of distressed properties onto the market, there could be an exertion of downward pressure on home prices should a heavier than expected wave of foreclosures come to market next year,” she said.

“The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government,” Appleton-Young said.

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Neighborly Financial - now a "Tier 1" Wells Fargo Direct Lender

2009-10-21T09:33:00.001-07:00

Hello Neighbors,

Congratulations to Neighborly Financial, John Graham, and his team.

That group is now a direct lender with Wells Fargo. Even better, they hold a "Tier 1" status - which means real dollars to clients. That status drive a further reduction in costs of at least .25%.

Nicely done Neighborly Financial!

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

C.A.R. Confirms - Longer Escrow Periods Likely

2009-10-13T13:08:00.000-07:00

Hello Neighbors,

As mentioned in a blog article from a couple of months ago, be ready for potential extensions in escrows due to changes in financing regulation.

But... don't just take our word for it, take a look at what the California Association of Realtors (CAR) just published.

THANK YOU CAR!

NEW LOAN DISCLOSURE RULES MAY POTENTIALLY AFFECT CLOSE OF ESCROW

Starting July 30, 2009, if the APR on an initial Good Faith Estimate is no longer accurate (within a 0.125% range) at close of escrow, a lender must generally provide a residential borrower with a new disclosure and a three-day right to rescind before consummating the loan. REALTORS® are forewarned that, because of this new three-day waiting period, a lender's failure to timely provide corrected disclosures has the potential of delaying funding of the loan and close of escrow.

This new requirement is part of the Mortgage Disclosure Improvement Act (MDIA) implementing new loan procedures to protect borrowers and foster greater transparency in mortgage lending. For loan applications submitted on or after July 30, 2009, the new MDIA changes to the Truth in Lending Act are generally as follows:

Applicability: The new MDIA rules pertain to federally-related mortgage loans covered under RESPA and secured by a consumer's dwelling. The rules apply to both purchase and refinance loans.

Early Disclosures: A lender must provide a borrower with an initial Good Faith Estimate within three business days of receiving the borrower's written loan application as specified. For this provision, a "business day" is generally defined as a day on which the lender's offices are open for business.

Upfront Fees Restriction: Neither a lender nor any other person may impose an upfront fee on the borrower (except for credit report) until the borrower has received the early disclosures in person or, if mailed, three business days after the early disclosures are mailed. For this rule, a "business day" is defined as all calendar days except Sundays and legal public holidays as specified.

Seven-Day Waiting Period: A lender must wait seven business days after providing the early disclosures before consummating the loan. For purposes of this waiting period, a "business day" is defined as all calendar days except Sundays and federal legal holidays as specified. A borrower may waive the waiting period in writing in case of personal financial emergency, such as an imminent foreclosure sale.

Re-disclosure Requirement: If the final Annual Percentage Rate (APR) at loan consummation varies more than 0.125% (or 1/8 of one percent) from the initial APR on the early disclosures of a regular transaction, the lender must provide the borrower with a corrected disclosure at least three business days before the loan is consummated. For purposes of this waiting period, a "business day" is defined as all calendar days except Sundays and federal legal holidays as specified.

Three-Day Waiting Period: For corrected disclosures, a lender cannot consummate a loan until three business days after the borrower receives the corrected disclosure in person. If the corrected disclosure is mailed, the borrower is deemed to have received it three business days after it is placed in the mail. A borrower may waive this waiting period in writing in case of a bona fide personal financial emergency, such as an imminent foreclosure sale.

Source: The new MDIA rules and regulations are set forth at 74 Federal Register 23,289 (May 19, 2009) (to be codified at 12 CFR 226) available at http://www.federalreserve.gov/reportforms/formsreview/RegZ_20090519_ffr.pdf.

Again, our sincere thanks to CAR for this content.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Neighborly Financial Joins Calaveras County Search & Rescue Efforts

2009-10-02T15:40:00.000-07:00

Hello Neighbors,

John Graham, manager of Neighborly Financial is back.

He's been gone for the last several days, helping a search and rescue effort in a neighboring county.

From John:

I went to help search for the missing deer hunter in Calaveras County, last Wednesday. We spent all day looking for the subject. We were able to track his footsteps from the truck for about 7 miles, step by step, until darkness forced us to retreat for the night. Attached is a photo of the footprint we were following during the Calaveras County search. As of Friday, his location is still unknown. I have no details on the outcome, other than he is alive.

I am a member of the Placer County Sherriff's Search and Rescue team. We are recognized as one of the largest and better trained teams in the state, and therefore we get called out to assist with searches in many other counties. We assist with both backcountry and urban searches, for missing hikers, hunters, motorcycle riders, children and Alzheimer's patients. We also assist the Sherriff with evidence searches for criminal cases. We get called out about once or twice a month. Volunteers spend many hours training and in the field on searches. We all serve as ground searchers, willing to hike in any conditions and any terrain, but also we are divided into teams with specialties in 4WD, radio communications, motorcycles, mountain rescue, horses, and canine search, to name a few.

NICE work John. Another example of supporting our local community. We love doing it, just wish it wasn't a tough story.

Our thoughts go out to this family as they continue the search,

Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

"Shadow Inventory"

2009-10-01T13:47:00.000-07:00

Hello Neighbors,

I attended this month’s Finance Forum (meeting) at the Sacramento Association of Realtors branch office.

Interesting stuff.

A term we’ve been hearing more and more of recently was discussed….. “Shadow Inventory”.

What is Shadow Inventory?

Homes that are in some sort of Notice of Default (NOD) or foreclosure proceedings… but haven’t yet been taken back by the banks. Meaning? Homes that are vacant – or will be soon – that aren’t yet being reported on the bank’s financial books.

How much?

I heard an estimate this morning that shocked me: 35,000 – 40,000 homes in the “Greater Sacramento area”. Now that area probably includes parts of Sacramento County, Placer County, and even El Dorado County. If those numbers are correct, it is a HUGE amount of homes that will some day come to market. If. If. If.

Impacts?

Obviously, if such numbers exist, that has huge macro-economic implications. Prices will drop. Banks will be in financial trouble. Buyers will benefit – if they can get loans. Sellers will have to hold tight for much longer, or compete with insanely low price points.

HOWEVER, there is a problem – accurate data.

No one has actually published the data we need to verify such speculation. Search MLS and you will find that there isn’t much bank owned inventory now. It’s dried up. You can search county tax records, but those tools aren’t very user friendly. It would take days and days to compile such data. One industry professional says the inventory is there… another say the Obama plans have curbed the problem.

So?

We continue to listen. Speculation runs from all ends of the spectrum. If we had the data, we could guide you in the right direction. Until then, we (all of us in this industry) continue to be reactive instead of proactive.

I’m looking forward to changing that behavior.

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Home Sales Are UP !

2009-10-01T13:30:00.001-07:00

Hello Neighbors,

Two blog posts today....

The first one is from the NAR (National Association of Realtors) chief economist - Lawrence Yun - on the recovery underway! Thanks NAR!

The second? Direct contrast to the first. "Shadow Inventory". Stay tuned... here's the first:

Headed in the Right Direction:

Numbers Show Sales are Up and Heading in the Right Direction

Pending home sales in July reached their highest mark in two years, and closed sales also continued on an upward path. As a result, inventories are tightening; in June there were 3.8 million properties for sale nationally, compared with 4.5 million at the same time last year.

More broadly, there are other indications the economy is heading up. Durable goods orders have risen for three straight months because business inventories have been depleted. The stock market has also made a nice comeback, and exports have been rising faster than imports.

Thanks to these promising signs, we forecast higher home sales and stabilizing prices in the year ahead. But there are still some concerns.

First, although inventories are improving, it’s possible that many owners want to put their house on the market but are waiting for conditions to improve. Banks may be doing the same with their foreclosed properties. These concerns might be off the mark; in areas where housing has been recovering, we would expect to see inventories softening as ¬sellers and banks jump back in, but we haven’t been seeing that.

Beyond the housing market, there are other economic factors that could hold back recovery. The country is looking at a continuing long-term budget deficit that could translate into higher mortgage rates. We’re also looking at rising oil prices ($70 from $50 earlier this year), with that extra money shipping overseas rather than staying home. And heavy job losses make it likely foreclosures will keep rising through the remainder of the year.

Still, we have reason to be confident. With home sales heading up and inventories shrinking, prices are stabilizing. These are the key conditions needed for housing to lead the economy into growth mode. Once that happens, jobs will follow.

Thanks NAR, the recovery is more than a welcomed visitor... it's a way overdue guest.

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

New Listing in Plumas Lake + No REOs !!

2009-09-29T09:53:00.001-07:00

Hello Neighbors,

...to follow up that last "search engine helper" blog post, here is some market news.

We just went live with a listing in Plumas Lake. That's about 10 minutes south of Marysville (in Yuba County).

That is an area like Lincoln (Placer County) that was overbuilt during the boom. Plumas Lake is much smaller in scale, but experienced similar swings. ...oh, and there is no actual "lake" in Plumas Lake.

Why should you care?

a) The house we have listed is really nice - 2041 Maverick Drive

b) The market research we did before going live was fascinating. There were 51 homes on the market in the area: 50 were short sales, and 1 was an investor flip (good luck). There were NO (Zero, Zilch) bank owned or "REO" homes. None. Amazing.

To have such an area as Plumas Lake without REO homes tells us some important information... foreclosure inventory has dried up, and banks aren't releasing those homes to the marketplace.

When (if?) will those foreclosure homes come to market? We don't know. The industry experts all have different opinions. We pay attention to the data. Once the data shows a story, you'll get an update through this forum.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

1-800-960-0860

2009-09-29T09:38:00.000-07:00

Hello Neighbors,

That's our toll free number.

This blog post isn't industry news or an update on our services... it's simply an entry to help the search engines.

Please excuse the odd use of the blog space.

It appears that a collections company in Utah (we think it's Utah) is using our number inappropriately.

We wanted to help clear this up by getting out a note to those who may be Googling the 18009600860 or 1-800-960-0860 number.

If you find this blog entry when searching for your collections agency / company... know that the number is wrong. We wish you the best of luck, but can't help you with your search. The 1.800.960.0860 number is used to provide real estate and lending services, certainly not collections! We are not related to a collections company in any way.

While we enjoy entrepreneurship, "Neighborly Collections" certainly isn't a business model we are pursuing!

Good luck.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

"Nice Guy Realty & Loans"

2009-09-22T15:09:00.000-07:00

Maybe that's what we should be called...

Hello Neighbors,

I just spoke with a gentleman who needs a home loan - his first.

In the conversation we learned that he has great credit, makes a good living, doesn't yet have a mortgage, and would be the ideal borrower.

We also learned that he has an auto loan with Golden One Credit Union, and that he was in the military several years ago.

So?

We sent him away!

Yep. First, we told him to contact Golden One (the credit union). If he has a consumer debt instrument (car loan) with them, he may be able to combine that existing auto product with a home loan, and qualify for a greater purchase price (while keeping his overall expenditures down).

Second, we told him to call USAA (1-800-531-8722). They have loan programs and fees that are tailored specifically to veterans and service personnel.

Third? We told him to call us back if he wanted to - but that he would likely save money if he went with Options 1 or 2.

We get into conversations like this all the time. It may not help our bottom line much, but it sure helps with our karma accounts.

...problem is, karma doesn't blog.

Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Auburn Fire Benefits This Weekend

2009-09-18T08:53:00.000-07:00

Hello Neighbors,

Flyers just arrived... thanks for passing our way. The flyers will be linked off of the Neighborly Realty & Neighborly Financial Facebook page if you'd like copies.

Two events this weekend to help with the Auburn Fire victims:

Saturday, September 19th and Sunday, September 20th - Pancake Breakfast at Applebee's on Bell Road! 8:00am - 10:00am $6.00 per ticket, 100% of donations going to the Auburn Disaster Relief Fund. You need to buy tickets ahead of time, and can get them at Applebee’s (along with a few other Auburn locations).

Sunday, September 20th - Benefit in the Park. Regional Park in Auburn, Noon - 7:00pm. 6 different bands, beer garden, food, inflatable rides for kids, and a bunch of other stuff. Donations are being accepted by Community First Bank. More info at www.49Fire.com

Sorry for the late notice, but we hope to see you there!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Our Vision

2009-09-16T18:09:00.000-07:00

Hello Neighbors,

From time to time, it's important to look at why we are here. Keeping us focused on a few fundamental beliefs means better service levels for you.

So now and then, we ask ourselves - what is Neighborly's Vision?

Where do we fit against the competition?

How do we behave, and represent the Neighborly Way every day?

Simply stated......

THE Choice

By Delivering Unequaled Customer Service, Neighborly is the Recognized Leader in Real Estate and Lending Services in Northern California - By Clients, Partners, and Industry Professionals.

Neighborly Offers a Fully Integrated Suite of Services to Meet and Exceed Client Expectations. Neighborly is THE CHOICE in Real Estate and Lending Services.

We believe it. We practice it. We welcome the opportunity to prove it to you.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

What is "The Neighborly Way"?

2009-09-04T12:11:00.000-07:00

Hello Neighbors,

Many thanks for those of you who have helped us support the Auburn "Highway 49 Fire" relief efforts. We plan to drop off another huge batch of clothing this weekend. This is a great community, and we very much appreciate the support from everyone.

For us... This is more than propaganda. Helping the communities where we live is part of our operating philosophy we call "The Neighborly Way". Take a look at point #9:

The Neighborly Way

1) Service - NOT Sales

2) Be the Industry and Market Expert

3) Advisors, Coaches, and Teachers

4) Respect for the Client, Team Member, Partners, and Peers

5) Communicate Frequently - with Fact, Tact, and Truth

6) Integrity First, Honesty Always

7) Earn and Encourage Trust

8) Personal Earnings are Second to Client Service and Their Satisfaction

9) Repay our Communities, Promote Charity

10) Protect and Promote the Environment

11) Deliver a Single One Stop Shop Experience

12) Unwavering Belief in The American Dream

Our name was chosen very intentionally. "Neighborly" is the way we conduct ourselves. These points guide our decision making and our actions. The "Neighborly Way" is much more than a simple tagline - it's how we live.

Thanks again,

Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Auburn Fires - THANK YOU and Important Lessons

2009-09-01T15:54:00.000-07:00

Hello Neighbors,

Our heart goes out to our friends and family who were impacted by the fires in Auburn on Sunday. Two of Neighborly’s own (Juli Marty’s family and mine) were impacted by the fires – although no damage.

A sincere thank you to the fire fighters and the pilots flying the 14 aircraft over our heads. An amazing job performed by these professionals.

We were told to evacuate at round 3:30pm on Sunday. ….exactly when we were getting home from a weekend out of town. There were “reverse-911” messages on our home answering machine. It took us an hour to go the last mile to our house, and we could see the smoke + fire the whole time. We were on the phone trying to get in touch with neighbors and family while driving that last mile. Our cell phones kept dropping, and we could see the 14 aircraft flying over our house. 20 minutes after getting to our house (and hearing the voice messages from the sheriff), we lost electricity.

It was nuts.

The fire never crossed over to our side of 49, but we didn’t know that until well past 11:00pm on Sunday night. We had no electricity, and only 1 battery powered 1980s style walkman radio to get news. At one point I jumped on my old Schwinn cruiser to head to the fire to get my own news. We were hearing on the radio that 84 lumber and other businesses had burned to the ground, and that our side of 49 was getting burned as well. Once I got back to the house from my bike ride, we decided we could relax a bit – but we still left the cars packed.

Since we have a 3 month old baby and a 3 year old toddler… it added about an extra million layers of challenge to the whole process… All of our neighbors were packing up and asking us what we needed for the kids. VERY KIND group of folks.

My wife was packing diapers, photo albums, baby clothes, our home movies, etc…. while I was outside running hoses and putting ladders up to the roof. My truck battery was dead – and no electricity at the house – so I was pulling batteries from other cars to try and get the truck running…. Wow. All in parallel with trying to get updates from my parents and aunt on their homes… 7 or 8 hours of pure adrenaline is enough to make a guy (a family) tired.

It taught us some important lessons, if I may share:

a) ABSOLUTELY make sure you have good battery powered radios in the house. We bought a hand-crank radio at Home Depot yesterday. We have lots of batteries for the kids toys… which meant power for flashlights too.

b) Centralize those things that you would take out in a fire. If you get the call to evacuate, you really don’t have the kind of time you think you will have…

c) Talk to your neighbors about what they would like pulled out of their houses in an emergency. We didn’t even have our neighbors cell phone numbers to do any coordination…

d) Keep those car (truck!) batteries charged. BAD mistake on my part. You can get a lot more into a full size GMC truck than a Toyota Prius.

e) News is 50% rumor, and wrong. We were told at different times that the fire was on our side of Highway 49 (it never was) and that several of the local business had burned to the ground – like 84 lumber (it did not). It’s best to be prepared for different contingencies, since the news didn’t keep up well with reality.

f) Not much else in the house matters except having clothes for your kids ready.
a.) Jenny (my wife): “I’ve got the baby stuff packed, what do you want of yours”?
b.) Jim: “I really don’t know, just get their stuff”.
c.) Jim grabs three old photo albums of his own and throws them in the Prius. That was it for Jim stuff.

Wild times.

The fire’s path is shown on this KCRA video: http://www.kcra.com/video/20665232/index.html The fire ran right to the back fence of we had listed for sale in 2006. We’ve checked with that family, and the house survived (smoke issues of course).

As I write these quick tips, my wife Jenny is collecting clothing for the families who were burned out.

IF YOU WOULD LIKE TO DONATE, CALL ME AT 916.801.3940 and I will pick up your donations in my truck… now with a working battery.

Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

California Association of Realtors Offers Job Loss Insurance

2009-08-27T09:37:00.000-07:00

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 receive $750 per month.

To be eligible for coverage, the home must be a principle resident in California and a first-time buyer is defined as someone who has not purchased a home in the past three years. While there are no caps on the applicant's income or the purchase prices of the home, the applicants are required to use a California REALTOR in their transaction; they cannot be self-employed or older than the age of 70. Consumers can apply for the program via their REALTOR.

It's new - so we haven't tried executing on the program yet... but if you want it, call me! We'll figure it out together!

Putting 2009 in the rear view mirror... Neighborly!

- Jim

www.NeighborlyGroup.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Short Sale Process Help for Realtors

2009-08-26T13:46:00.000-07:00

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 have the lender say "by the way, we are cutting your commissions to ZERO". Yep. Working for free. Or - more realistically, since we've invested a great deal of time, energy, and our own funds - we are working for a loss. Now factor in that the majority of the houses on the market are short sales. Do the math, earnings risk is pretty high concern in this profession.

Why does this Freddie Mac news help?

We can now work with less fear of "Short Sale Earnings Theft". More confidence when showing Short Sale homes to Buyers. More faith that we can operate a business as a business - not as a collections agency.

We have more assurance that the industry is recovering, and some level of logic is returning to the key principles who drive this market. Stability is around the corner!

Freddie Mac Issues Written Short Sales Commission Policy

On August 20, 2009, Freddie Mac confirmed in writing that its servicers are not allowed to renegotiate short sales commissions. According to the policy, as a condition of the servicer’s acceptance of a short sale offer, servicers cannot renegotiate the sales commission below the amount agreed to by the real estate broker and the seller/borrower. However, if the negotiated commission exceeds 6 percent, servicers are required to limit it to 6 percent. This Freddie policy is consistent with Fannie Mae’s policy.

NAR has asked Freddie to establish an appeals process for cases when servicers refuse to comply with Freddie Mac’s policy.

Links to more in depth information can be found here:

Freddie Mac Single-Family Seller/Servicer Guide Bulletin 2009-22 (August 20, 2009)

http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0922.pdf

Fannie Mae Short Sales Commissions Policy and Appeals Process

http://www.realtor.org/wps/wcm/connect/4fb4f4804e824cf0a6e8e696c79aa288/government_affairs_fannie_short_sales_policy.pdf?MOD=AJPERES&CACHEID=4fb4f4804e824cf0a6e8e696c79aa288

NAR’s Short Sales Website

http://www.realtor.org/realtors/basics_short_sales

Just another sign that logic is returning (if slowly).

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Wooo Whooo !! - Home Sales Up and Steady

2009-08-26T11:30:00.000-07:00

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 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.
Lawrence Yun, NAR chief economist, said he is encouraged. “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said.

The monthly sales gain was the largest on record for the total existing-home sales series dating back to 1999.

“Because price-to-income ratios have fallen below historical trends, there are more all-cash offers. In some recovering markets like San Diego, Las Vegas, Phoenix, and Orlando, the demand for foreclosed and lower priced homes has spiked, and a lack of inventory is becoming a common complaint,” Yun said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.22 percent in July from 5.42 percent in June; the rate was 6.43 percent in July 2008.

An NAR practitioner survey showed first-time buyers purchased 30 percent of homes in July, and that distressed homes accounted for 31 percent of transactions.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the first-time buyer tax credit is working. “In addition to first-time buyers, we’re also seeing increased activity by repeat buyers. While many entry-level buyers are focused on the discounted prices of distressed homes, they’re also freeing some existing owners to sell and make a move,” he said.

“Realtors® are the best resource for consumers in these changing market conditions because the transaction process has become more complex. Since it’s now taking longer to complete a home sale, first-time buyers who want to take advantage of the $8,000 tax credit should try to make contract offers by the end of September,” McMillan said. “Otherwise, they may miss the November 30 closing deadline.”

Total housing inventory at the end of July rose 7.3 percent to 4.09 million existing homes available for sale, which represents a 9.4-month supply2 at the current sales pace, which was unchanged from June because of the strong sales gain. Raw inventory totals are 10.6 percent lower than a year ago when the number of unsold homes was at a record.

The national median existing-home price3 for all housing types was $178,400 in July, which is 15.1 percent lower than July 2008. Distressed properties continue to weigh down the median price because they typically sell for 15 to 20 percent less than traditional homes.

Single-family home sales increased 6.5 percent to a seasonally adjusted annual rate of 4.61 million in July from a pace of 4.33 million in June, and are 5.0 percent higher than the 4.39 million-unit level in July 2008. The median existing single-family home price was $178,300 in July, which is 14.6 percent below a year ago.
Existing condominium and co-op sales jumped 12.5 percent to a seasonally adjusted annual rate of 630,000 units in July from 560,000 in June, and are 5.9 percent above the 595,000-unit level a year ago. The median existing condo price4 was $178,800 in July, down 18.9 percent from July 2008.

Regionally, existing-home sales in the Northeast surged 13.4 percent to an annual pace of 930,000 in July, and are 3.3 percent higher than July 2008. The median price in the Northeast was $236,700, down 15.0 percent from a year ago.

Existing-home sales in the Midwest jumped 10.9 percent in July to a level of 1.22 million and are 8.0 percent above a year ago. The median price in the Midwest was $157,200, which is 5.9 percent less than July 2008.

In the South, existing-home sales rose 7.1 percent to an annual pace of 1.95 million in July and are 5.4 percent higher than July 2008. The median price in the South was $164,500, down 7.1 percent from a year ago.

Existing-home sales in the West slipped 1.7 percent to an annual rate of 1.13 million in July, but are 1.8 percent above a year ago. The median price in the West was $202,300, which is 28.0 percent below July 2008.

Buyers, we are getting close to the "now or never" point.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyGroup.com

Folsom Treehouse Update (Out of Bankruptcy)

2009-08-21T14:23:00.000-07:00

Hello Neighbors,

Another sign that things are stabilizing a bit. You've heard about this in the local news... some of the larger foreclosures / failures are getting bought up, like the Folsom Treehouse project.

This just in from the Sac Business Journal - thank you SBJ!

Folsom Project Bought out of Foreclosure

Aug 17, 2009 - The Sacramento Business Journal

A real estate investment firm said Monday it has acquired a 25-acre residential development in Folsom through foreclosure proceedings and plans to develop the property with new homes.

PCCP LLC, which has an office in Sacramento, will resume construction at the Folsom Treehouse master-planned community, located at Prairie City and Iron Point roads, in a partnership with Signature Properties. The company acquired the project last week. The property had been in possession of the Federal Deposit Insurance Corp. and United Commercial Bank, after the original loan of $22.5 million went into default last year. PCCP acquired a discounted note from the FDIC and United Commercial in March.

The development is made up of 291 finished lots, with 99 single-family lots, 164 condominium lots and 28 constructed or partially constructed homes.
The terms of the acquisition were not disclosed.

Company vice president Jim Galovan said PCCP, which focuses on recapitalizing distressed real estate, has targeted Folsom for investment in the past due to its strong job base anchored by the 7,000-employee Intel campus. The area currently has a low inventory of new homes, he said.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

HUD Homes, We Got 'em !!

2009-08-18T11:40:00.000-07:00

Hello Neighbors!

It is with great enthusiasm that we announce our affiliation with HUD! After pushing for 11 months with their subcontractor, we now have keys! Yep, we can get into any HUD home in California, help you write offers ("Bids" in the HUD world), and get you into one of these homes.

What is a HUD Home?

A HUD Home is a single family home or other type of residence that is backed by the Federal Housing Administration / FHA (through "Mortgage Insurance" aka "MIP") and is now in foreclosure. Once a home backed by the FHA goes into foreclosure, it is deeded back to HUD by the lending mortgage company. This is how HUD "forecloses" on Mortgage Insurance when the Buyer defaults.

Why is this Important?

1) It's not rocket science. As more home owners default, the amount of "inventory" HUD will take back will grow.

2) HUD doesn't use the same MLS lockbox system that 99% of the homes for sale use. They have keys to the locks on the doors, that they issue to HUD approved Real Estate companies. A regular Realtor can't get in with a lockbox to a HUD home - they need the keys! We've Got Them !!

3) The purchase offer process is different with HUD homes. They don't use the normal contracts that we use for most transactions in California. They use their own on-line systems to make offers (bids) and to let the Buyers know where they stand. Real Estate companies can't submit offers on HUD homes unless they've been pre-approved by HUD and issued a special code (called a "NAID" number". We've got a NAID number and are ready to go!

Next steps?

Take a look at the items to the right. You will see a section on HUD Homes. You can review inventory (see what is on the market).

Call us and we can help you with a HUD home!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Become a Fan in Facebook !!

2009-08-10T20:22:00.001-07:00

Hello Neighbors,

Join us in Facebook!

Become a Fan of Neighborly Realty & Neighborly Financial today! We just added this within the last few minutes, so please excuse the lack of fans as we create this blog entry. We'll do better soon!

Neighborly Realty & Neighborly Financial on Facebook

Why Facebook?

It is a wonderful way to get real time information out quickly - specifically to those who want it, without intruding on your email!

Thanks Neighbors - and now fans!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Are Appraisals Useless?

2009-08-07T10:26:00.000-07:00

It sure looks that way.

Hello Neighbors,

It happened again yesterday. An appraisal came in on a great Granite Bay home (we are in escrow on) at roughly $46,000 below purchase price. Yep, that’s right. A HUGE gap between what we’ve agreed to pay and what the bank’s appraisers say it is worth.

Unfortunately, this is to be expected – but it sure makes this process difficult, and can really challenge the buyer / borrower confidence.

For me, it started in 2006. We had an appraisal come in at $6,000 below the agreed upon purchase price.

Since then, the appraisals have been close to worthless.

Remember – we do loans too. Every purchase loan or re-fi loan requires an appraisal. In the last year, we’ve had two different transactions that required 4 appraisals each !! Why? To account for appraiser fear and appraiser incompetence. Multiply 4 by the average appraisal price of $350 - $490 and you can see how hard this is on the buyers and borrowers. It’s awful.

Why is it happening?

1) Appraisers are afraid. Collusion between some appraisers and some lenders was the first step to this downturn, as far back as 2005 – 2006. So? Appraisers got scared and started getting overly conservative in their valuations. Of course, since the markets have continued to decline – the conservative nature of appraisers has only increased.

2) Appraisers aren’t able to talk to anyone relevant! As of May 1st 2009, appraisers aren’t allowed to discuss values directly with the parties involved in the transaction. That’s right – they go in blind without much data or insight on the specific property. It’s now illegal for us to talk to them. We do a ton of work making sure an offer is at the right market value – but aren’t allowed to discuss this research with the appraiser! Insane. Google this one – “HVCC legislation”. It will explain how the appraisal rules have changed, and the creation of these new “Appraisal Management Companies” (AMC’s).

3) Appraisers aren’t familiar with the area they are appraising. This one is the worst. Lenders used to be able to pick the appraisers they used. Not anymore. Obviously, lenders would choose local appraisers who knew the neighborhoods and areas well. Now? The appraiser may not even be from the same County in California! The example I gave of our $46,000 gap yesterday? The appraiser was from El Dorado Hills – that’s a County away from the property in question in Placer County’s Granite Bay. The appraiser used comps that were 50 years old, backed to Auburn-Folsom road, and sat under major power lines… with no adjustments. She was not at the slightest familiar with the different Granite Bay neighborhoods and nuances.

Also yesterday - I was sitting with 80 or 90 mortgage brokers at the monthly Sacramento Association of Realtors finance session. One lender shared a scary story…. Two appraisers from San Diego were flying up here to appraise 15 houses – during a 1 day trip. All for a bank. The appraisers were earning $150 per house. Wow. Out of the area appraisers, working for below market wages, and spending a few minutes per home. What does that tell you about this process?

In summary? Appraisals are very near worthless.

What is important is making sure you have confidence in the agent representing you, and making sure that person is doing a very thorough job of reviewing home values.

Want to talk more about appraisals, give me a call.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Be Prepared - 45 Day and 60 Day Escrows

2009-08-03T15:07:00.000-07:00

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-In-Lending laws. These laws force new disclosures to borrowers if there is a change of 1/8th of a point in APR. ...and a 3 day "hold" period for the analysis of that new disclosure.

What does this last item mean?

Let's say interest rates change between your lock and your close of escrow. NOTE THAT THEY ALWAYS WILL since rates are based on the daily US bond markets!! You could end up reviewing and reviewing changes and changes for days.

More review, more 3 day wait periods = longer escrows. Please plan accordingly!

- NeighborlyJim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Where is the Bottom ?? How About HERE !!

2009-08-03T15:03:00.000-07:00

Hello Neighbors,

My sincere apologies for the gap! It's been 4 weeks since a "fresh" blog post... lots going on in these crazy markets. So many changes with lenders (new Appraisal rules, new Truth-in-Lending rules, a pipeline so full that we are seeing 45 and 60 day escrows..)

It's just plain nutty right now.

But it does feel like we are at the bottom, and the Associated Press just put out this fine (and long) article on just that topic. Take a read below.

From a practical standpoint - we are still offering like crazy for Buyers at entry level price points (roughly below $200,000). Most of that inventory is now Short Sales. We've seen a drop in REOs (foreclosures).

Happily - we are starting to see "private party sales" again! That's the regular old sale we are all used to. Family to family. No extra banks or lenders involved. It's like 2005 and earlier...

Here's the AP article.

- NeighborlyJim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

From our friends at the Associated Press - thanks AP for the great content and the good data points !!

Welcome to the bottom: Housing begins slow rebound

By ADRIAN SAINZ, DAVID TWIDDY, DANIEL WAGNER, ALEX VEIGA, Associated Press Writers Adrian Sainz, David Twiddy, Daniel Wagner, Alex Veiga, Associated Press Writers – Sun Aug 2, 5:26 am ET

It was — note the past tense — the worst housing recession anyone but survivors of the Great Depression can remember.

From the frenzied peak of the real estate boom in 2005-2006 to the recession's trough earlier this year, home resales fell 38 percent and sales of new homes tumbled 76 percent. Construction of homes and apartments skidded 79 percent. And for the first time in more than four decades of record keeping, home prices posted consecutive annual declines.

A staggering $4 trillion in home equity was wiped out, and millions of Americans lost their homes through foreclosure.

Now take a deep breath and exhale. The worst is over.

By every measure, except foreclosures, the housing market has stabilized and many areas are recovering, according to a spate of data released in the past two weeks. Nationwide, home resales in June are up 9 percent from January, on a seasonally adjusted basis. Sales of new homes have climbed 17 percent during the same period. And construction, while still anemic, has risen almost 20 percent since the beginning of the year.

Even home prices, down one third from the top, edged up in May, the first monthly increase since June 2006.

"The freefall is over," says Dean Baker of the Center for Economic and Policy Research.

The problem is that, Baker, like many economists, expects the housing market will "be bouncing around the bottom" for the second half of the year.

There are also real threats that could poison this budding recovery. The unemployment rate, which is 9.5 percent, is expected to surpass 10 percent, leaving even more homeowners unable to pay their mortgages. Mortgage rates could rise, making homeownership less affordable. And the federal tax credit for first-time homebuyers, which as lured many into the market, is set to expire on Nov. 30.

"As long as jobs are being lost, regardless of all the federal programs out there to help the borrowers, you're still going to have problems in the housing market," says Steve Cumbie, executive director of the Center for Real Estate Development at the University of North Carolina's Kenan-Flagler Business School.

True, but when you've got bidding wars for foreclosures in places like Las Vegas, Phoenix and Los Angeles, it's time to call the bottom.

The WEST

For years Las Vegas symbolized the boom, as mile after mile of desert gave way to three-bedroom homes and swimming pools. Then came the crash and it symbolized something else: a decade of speculation and excess.

Now, Las Vegas is one of the hottest housing markets in the region again. This city has always profited from others' misfortune, and the same can be said of the current housing market.

In Clark County, Nev., home to Sin City, one in every 11 homes had received at least one foreclosure-related notice in June, according to RealtyTrac. The glut of deeply discounted foreclosures has almost doubled sales activity for most of this year.

"In January the market was busy, and since that time, it's gone a little haywire," says Brad Snyder, an agent with ZipRealty in Las Vegas. "There's (sales) activity now that we haven't seen even since '04."

The situation is similar in California's Riverside, San Joaquin and San Bernardino counties, where one out of every 14 homes was in foreclosure.

After falling 18 percent in the second half of 2008, monthly home prices were flat in the first half of this year, on a seasonally adjusted basis, according to the National Association of Realtors.

Markets like these have seen a surge this year in all-cash buyers, many of them investors, scooping up the sharply discounted properties. It's not uncommon to see multiple offers on a single property, and that's helped slow the rate of price declines a little. The demand also has helped whittle down the inventory of homes for sale to the lowest level since the boom.

"We have seen such a steep decline in supply right now, that when a home comes on the market it's first day there could be seven or eight or 10 people there in a matter of hours," Snyder says.

To lure buyers away from foreclosures, homebuilders have slashed prices or are simply tearing down vacant homes. New home sales jumped almost 59 percent in the first half of the year, while construction in these grossly overbuilt markets slid 12 percent.

In the Pacific Northwest and states such as Utah, by contrast, housing markets are on a different timer than the rest of the West. Home sales and values held up better and longer while markets in the Southwest were already in decline. These markets also haven't seen as many foreclosures wreaking havoc with home prices.

States in the region: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming

Data compares June vs. January and June 2008:

Home resales: down 1 percent, up 12 percent

Median price: $214,800, flat, down 25 percent

New home sales: up 59 percent, down 10 percent

New home construction: down 12 percent, down 42 percent

Mortgage delinquencies as of March: 12 percent

Regional outlook: The recession remains the region's wild card. Unemployment is at 10.2 percent in the West, but that could go higher if the economy worsens. If that happens, expect more foreclosures and a slower turnaround

Re-Finance Rule Changes – From 105%: Now up to 125% of Home Value !!

2009-07-02T11:20:00.000-07:00

Hello Neighbors!

GREAT NEWS from our friends at CNN and CNNMoney! Thanks CNN Teams!

Government driven changes to the home financing markets continue to roll out, and we couldn’t be happier. Home owners can now refinance up to 125% of their home values. Fantastic news for owners underwater due to the huge market shifts we’ve seen since 2006.

Don’t let these rates pass you buy. Although they are no longer in the 4%s, we are still getting great rates in the 5%s. Those of you with adjustable or very bad 2nds can now take advantage of locking into the new lower rates even if we couldn’t help you just a month ago!

If you need help with a re-fi, CALL! You can start with Jim at 916.801.3940.

The full article from CNN is below:

NEW YORK (CNNMoney.com) -- The Obama administration is widening its mortgage refinancing program to allow more borrowers hit hard by falling home prices to take part.

Borrowers whose loans are now worth up to 125% of their home's value are now eligible to refinance their homes under the Obama foreclosure prevention plan announced in February. Previously, the limit was 105%.

"The president's Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today's announcement we will extend its reach still further," said Donovan.

How many more people will be drawn to the program now, however, remains a question, especially since mortgage rates are on the rise. Administration officials do not have an estimate.

Refinancings Slow to Ramp Up (don't be one of these owners and miss the opportunity!)

Some 20,000 loans have been refinanced so far, according to the Treasury Department.
The initiative waives the requirement that homeowners have at least 20% equity in their home, allowing them to take advantage of today's lower rates. Homeowners must still meet other criteria, including being current on their payments and having loans that are owned or backed by Fannie Mae or Freddie Mac. The administration has set up a Web site, www.makinghomeaffordable.gov, with more information.

Wednesday's expansion means those with homes worth $200,000 and mortgages as large as $250,000 can still qualify. Previously, these borrowers could not have loans exceeding $210,000.

The program, however, has been slow to ramp up. Borrowers have complained that banks are not approving their applications. The Mortgage Bankers Association last week slashed its 2009 forecast of originations because fewer refinancings were being done than they originally expected. The group said only 13,000 were done in the three months after the plan's launch

The administration has projected that 4 million to 5 million mortgage borrowers would be helped. A Treasury official Tuesday said that the figure applied to those who would be eligible, not necessarily those who would participate.

Administration officials do not have an updated figure of how many people would be eligible or participate now that the criteria has been widened.

The recent uptick in mortgage prices has blunted the plan's benefit, as well. The Federal Reserve has been buying mortgage-backed securities and long-term Treasurys in an effort to lower rates.

It worked for a while. Rates hit a low of 4.84% on April 28, but are now at 5.45%, according to HSH Associates.

Since mortgage rates have been in the 6% range in recent years, refinancing to the mid-5% range may not be worth it, said Keith Gumbinger, vice president at HSH Associates. A homeowner with a $200,000 mortgage at 6% would see a savings of about $64 a month if he refinanced at 5.5%, and that's before closing costs.
"Are interest rates low enough to warrant getting into the process?" he said.
The administration's announcement comes on the same day as an industry group reported that the demand for refinancing dropped 30% last week. In addition to higher rates, rising unemployment is contributing to the decline.

Borrowers with Freddie Mac loans who refinance through their current servicer can apply right away, but those who want to go through a different lender must wait until Oct. 1. Those with Fannie Mae mortgages must use their current lenders and wait until Sept. 1.

A second part of the program lets eligible borrowers who are in default -- or at risk -- lower their monthly payments to no more than 31% of their pre-tax income. This can help those who are not making as much at their jobs or who have monthly payments they can't handle. Homeowners, servicers and mortgage investors can receive incentives to entice them to participate in the program.

Banks have extended more than 200,000 trial modification offers, according to the Treasury Department. Homeowners must make three monthly payments on time before the modification is made permanent.

Call to start the re-fi process now!

- Jim

www.GoodCreditGreatLoan.com

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

How Quick Can We Sell? How About 3 Offers in 10 Hours?

2009-06-29T16:15:00.000-07:00

Hello Neighbors,

WOW.

You use this site to keep up on the latest market activities. No spin, just good solid data.

Here is an example of how insane the markets are right now, from one of our own listings (in Marysville, CA).

We listed a house in Marysville for $79,800 at 11:00pm on Saturday the 20th. Within 10 hours, we had 3 written offers. We had more verbally promised offers, but those don't count (unless we see it in writing, it doesn’t exist).

Amazing market conditions if you are selling - and IF you are at the right price point.

Before going into escrow (roughly 7 days after listing) we had 13 very solid offers. Some were all cash. Most were above list price. 13 written offers.

Why?

Competition in the entry-level housing markets is incredible. Foreclosures continue to dry up. Short Sales continue to take forever - although some lenders are getting better.

Now What?

If you are a family and need to sell - we can get it done for you, and quickly AS LONG AS YOU PRICE ACCORDINGLY and you are in the "entry-level" price points. If you are at the very top of the high end market segments... we may not be able to sell. Those purchase dollars are still missing in action. Sorry Jan and Dave!

Wild times indeed.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.NeighborlyFinancial.blogspot.com

Join Us in Insider Pages!

2009-06-15T22:09:00.000-07:00

Hello Neighbors,

If you need a hand, this site will show you a map of our main office.

Enjoy!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.CashOutoftheBayArea.com

www.TheBestRealEstateWebSiteEver.com

New Foreclosure Laws Take Effect in California Today

2009-06-15T20:12:00.000-07:00

Hello Neighbors,

The real estate market continues to shift, with the help of legislation.

This just in from our friends at the Sac Bee (thank you Sacramento Bee)!

Foreclosure rates are going to continue to be low. GREAT for the homeowner! TOUGH for the first time Buyer who is still trying to get their hands on a bank owned property.

We have seen this in action on a daily basis. Here is today's example: I called on a listing today for a client on an Orangevale house that is on a probate sale. List price is $159,000. Surprisingly, the listing agent called me back! In MLS it says “no showings until June 16th” I called to get the OK to show tomorrow, and she told me she had 4 offers already – all above list price, sight unseen. WOW. But expected. That's the way the market is running right for first time Buyers. The competition is tough. It requires "clean offers" and QUICK action if you want to be a part.

Here's the article from the Sac Bee:

By Jim Wasserman
Published: Saturday, Jun. 13, 2009 - 12:00 am | Page 6B

After a severe economic storm of more than 365,000 California foreclosures since early 2007, the state's long-awaited 90-day foreclosure moratorium law goes into effect Monday.

But it doesn't mean foreclosures will stop.

Supporters acknowledge the state is likely to see thousands more foreclosures before the crisis subsides. The law, indeed, goes into effect as lenders are ramping up repossessions following expiration of earlier moratoriums, according to housing trackers.

But the California Foreclosure Prevention Act, passed as Assembly Bill X2 7 by lawmakers in February and signed by Gov. Arnold Schwarzenegger, raises a new hurdle in the foreclosure process.

Backers say it will make lenders try harder to keep borrowers in homes. Starting Monday, loan servicers must prove to the state they have comprehensive loan modification programs in place – or be denied rights to foreclose on their own schedules.

"You have voluntary programs that they don't have to do," said Assemblyman Ted Lieu, a Torrance Democrat who was the author of the bill. "This creates an enforcement mechanism to force them to do it. The hammer is the 90-day foreclosure moratorium, which they all hate."

The law will largely press lenders to follow the Obama administration's Making Home Affordable Program that began in March. That encourages lenders to cut interest rates or rewrite loans to 40-year terms to get payments below 38 percent of a borrower's monthly income. Other options include reducing principal and tacking missed payments to the back of the loan. Under the law, California officials also can encourage short sales or deeds in lieu – options in which banks accept less than owed – for borrowers who want to leave or don't qualify for modifications.
"The vast majority of large servicers should have no trouble complying. They have already complied with similar requirements at the federal level," said Dustin Hobbs, spokesman for the California Mortgage Bankers Association.

As the nation's first statewide moratorium law of its kind, according to Lieu, hopes are it will "slow down the rate of foreclosures."

"For some people there's not much that can be done," said the lawmaker. "But there are a fair number of people on the bubble … if they can get some assistance, they can stay in their home."

California Department of Corporations spokesman Mark Leyes said the state can't force or guarantee loan modifications. But the law is rooted in another state power that gives it leverage with lenders.

"What we do have control over is the legal process by which foreclosure is executed in this state," he said. Hence, adding 90 days to the process for those that don't comply.

Lieu said, "Not all banks are doing it at the same level. Some have good (modification efforts), some have bad ones and some have none."

Lenders have received widespread criticism for being overwhelmed by the foreclosure crisis and slow to rewrite loans despite receiving billions of dollars in federal assistance. Borrowers and nonprofit loan counseling agencies alike have complained of frustrating delays and snafus in the process.

On the front lines of the crisis it's easy to be wary about yet another new law or program.

"We're hopeful it will help, but in reality, time after time these things come out and the results are the same," said Pam Canada, executive director of the nonprofit counseling firm NeighborWorks Homeownership Center of Sacramento.

The new law represents a third evolution of California's response to a housing crisis that has severely damaged the economy and devastated local and state government budgets. In late 2007, Schwarzenegger entered into a voluntary agreement with subprime lenders to modify more loans.

Last summer, he signed Senate Bill 1137, which temporarily slowed banks' foreclosure machinery, making them work harder to contact borrowers and offer alternatives.
But foreclosures, while down in recent months, have continued in hard-hit California, especially in the capital region.

The region suffered almost 4,000 new foreclosures in January, February and March, and another 12,000 households are well behind on payments, according to Bay Area tracker ForeclosureRadar.

In summary, here's what will happen starting Monday:

• Lenders will submit applications to the state outlining their loan modification programs. That gives them a 30-day exemption from a moratorium.

• If the state OKs a lender's program, the firm is permanently exempt from the 90-day delay on foreclosures.

• If the state rejects the program as inadequate, a lender has 30 days to upgrade it and be reconsidered.

Leyes said consumers will be able to see a list of lenders that comply with the state's requirements by mid-July.

Thanks Neighbors (and Sac Bee),

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.CashOutoftheBayArea.com

www.GoodCreditGreatLoan.com

Scratch Location, Location, Location - it's now PRICE, PRICE, PRICE

2009-06-15T09:45:00.001-07:00

Hello Neighbors,

Interesting times.

Houses below the $250,000 price point are absolutely "flying off the shelves".

Property above the $600,000 price point? As "stale" as can be. Those properties are moving at a very, very slow pace. Often times sitting on the market for over a full year.

Why?

We see it every day – offering on homes below the $250,000 price point for several of our families – you MUST take immediate action to compete. We are now offering on homes – sight unseen – within a day or two of the home hitting the market. …and our completion? Doing EXACTLY the same thing. A properly priced home will have a dozen offers on it during the first few days on the market. It’s challenging, but it can be done. Of course, if your offer is complicated – and it is competing against “clean” offers – than you will lose. Do everything you can to structure a clean offer and you will have a shot at getting in a home now.

To validate what we are seeing, we looked to the NAR (National Association of Realtors) economics team for some insight. Take a look (and thank you NAR for the data!)

Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.

Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

The Pending Home Sales Index in the Northeast shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. In the Midwest the index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. The index in the South slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. In the West the index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.

“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger downpayment. Buyers who are wondering about their options should contact a Realtor®, who can advise consumers on the housing assistance programs and resources available in a given area.”

NAR’s Housing Affordability Index2 is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.

A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.

Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability. “In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he said. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”

The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun said.

Summary?

First time buyers are ruling the marketplace.

Some don’t even care where the home is – they just want to get into something soon before interest rates change too much, or the market takes off again.

Location, Location, Location? While still very important – it seems that “PRICE, PRICE, PRICE” is absolutely ruling the day.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.CashOutofCalifornia.com

www.GoodCreditGreatLoan.com

Are Low Mortgage Rates Gone for Good ??

2009-06-12T17:01:00.000-07:00

Hello Neighbors,

This article from John Graham, the Neighborly Financial manager:

In light of the recent run-up in mortgage rates, one has to ask if the low rates are gone for good. After all it was hard to imagine rates being at 4.75% for a 30 year fixed loan. At this time, I think these rates are gone. Why? Well, everyone is now seeing the light at the end of the tunnel for the recession. Stocks are up over 25% from the March '09 lows, with confidence growing. People are selling bonds with relatively low yields - moving to higher yielding stocks. As people sell bonds, the interest rates move up.

Add to this all the federal spending that will be pushed into the economy in the coming months. Money that will generally not hit the economy till it's too late. Think of it as giving stimulants to a hyperactive person - not a good outcome....

This is the outcome everyone is worrying about now. How do we keep the economy from getting out of control on the other side - with runaway inflation the primary fear. The main weapon in controlling a runaway economy is interest rates on various financial instruments.

As people sell bonds, and the fed is deciding how high and how fast to raise rates, mortgage rates are the first to suffer. After all the fed had a program to buy mortgage backed securities, to artificially drive these down. Now in light of the changing economic times, they are backing away from this program in the first step to let rates rise.

So.... what does this mean to the average borrower? Get ready for higher rates. If you have not refinanced, and if it makes sense, do it now! Remember, any rate below 6% is still a good rate.

see us at http://www.neighborlyfinancial.com/

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.GoodCreditGreatLoan.com

Activerain - GREAT Insight for all Real Estate & Loan Needs

2009-06-11T20:20:00.000-07:00

Hello Neighbors,

Are you familiar with "Activerain"?

It's a professional networking tool for Real Estate professionals.

It is also A GREAT source of information for the consumer - real estate or financing.

If you would like to check it out, give it a shot:

It's very much like a "LinkedIn" (networking tool for all professional disciplines). A bit like "Facebook" (networking tool for connecting with friends and family).

Good information, updates on market conditions, insight on financing and selling, and access to several hundred thousand real estate professionals around the world.

Enjoy!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.CashOutoftheBayArea.com

Neighborly is Twitter-ing (Tweeting) !

2009-06-10T15:49:00.000-07:00

Hello Neighbors,

Join us in Twitter now too!

You've been hearing the buzz for months now. We've taken the leap.

Here you go: https://twitter.com/NeighborlyJim

Why?

Another way to keep our neighbors informed.

Enjoy, and happy Twitting, Tweetering, Tweeting,

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

www.LoanMod.CashOutoftheBayArea.com

Newest Neighborly Team Member

2009-06-06T15:39:00.001-07:00

Hello Neighbors,

It is with great excitement that we announce the newest addition to the Neighborly Realty team roster: Holden Nicole Harris. Born June 4th, 2009. 9 pounds 6 ounces. 21.25 inches long. 10 fingers, 10 toes. Outstanding.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Loan Modifications - Are They Right for Your Family?

2009-06-03T12:04:00.001-07:00

Hello Neighbors,

Is a Loan Modification the right answer for your family?

We've made a new web site available at www.LoanMod.CashOutoftheBayArea.com to help you answer that question.

If you would like, you can also call our toll free 24x7 information line at 1-800-960-0860 and enter extension 1611 and listen to a recorded message.

Many thanks, and let us know how we can help.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Foreclosure Homes - We Can Help!

2009-06-02T23:13:00.001-07:00

Hello Neighbors,

Find us now on the Foreclosure.com Broker Network!

Just another step in getting you connected with the latest opportunities in our markets!

Many thanks!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Professional US Wide Real Estate "HEAD HUNTING" Services!

2009-06-01T23:06:00.000-07:00

Hello Neighbors,

EXCITING NEWS. We’ve formalized one of our most important activities.

For the last couple of years, we’ve been helping home sellers in different US states find good Listing Agents for their homes as they prepare to sell and move to our area.

Conversely, we’ve been helping our clients who sell a home here – when they need to find a good Buyer’s Agent in their new city and state. We’ve helped Buyers and Sellers all over the United States… New York, Texas, Colorado, Arizona, Iowa, …….really, all over the United States!

How?

We’ve become your favorite real estate HEAD HUNTERs!

By getting on the phone and interviewing agents all over the US – and finding the best real estate professional to help our clients – no matter where they are moving to or from!

We spend hours on the phone screening these people, to make sure our clients get the best service available. It is an enjoyable process, and one that we feel really good doing.

So Now What?

We’ve opened that service up to everyone! Yep, the policies and procedures are in place to do this on a greater scale.

We’ve created a new website for your use (two actually) to see how these programs and services work. Take a look at:

* www.CashOutoftheBayArea.com and

* www.CashOutofCalifornia.com

Behind each web site?

Information, tools, forms…. And most importantly, recorded audio script - available 24 x 7 through our new toll free 1-800-960-0860 service.

Call today and listen to these helpful topics:

Extension Number & Topic

0011 Who Are We?
1001 How Does this Head Hunting Service Work?
1101 What Does it Cost You?
1201 What Makes a Good Listing Agent?
1301 What is a Buyer’s Agent?
1401 How do we Screen Listing Agents for You?
1501 How Will we Find You a Good Buyer’s Agent?
1601 Will a Loan Modification Work For You?
1701 Where Can We Help You?
1801 Why Should You Use This Service?
1901 Can You Help Me with a Purchase Loan?
1911 Can You Help Me with a Refinance Loan?
1921 Can You Help Me with an Investment Loan?
2001 Really, You Charge No Fees?

We couldn’t be happier to have rolled this program out for you. The feedback on our Head Hunting efforts has always been positive. Now we bring it to you!

Enjoy, and Happy Head Hunting (with us)!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Interest Rates Back Over 5% ??

2009-05-29T14:59:00.001-07:00

Hello Neighbors,

We had a wild ride this week. Interest rates jumped up a bit, and the volatility was insane. As an example - on Wednesday, one of our underwriters notified us 5 different times on rate changes during that single work day!

Rates have come back down today, but we aren't sure how this volatility is going to play out in the coming weeks.

If you are thinking of Buying or re-financing, you may want to pick up the pace of your efforts.

CNN Financial posted this article on the topic this afternoon. THANKS CNN

NEW YORK (CNNMoney.com) -- Mortgage rates burst past the 5% mark for a 30-year fixed-rate loan late in May, peaking at an average of 5.45% on Thursday. It was the highest level reached by mortgage rates this year, but on Friday they fell back to 5.27%.

Still, the days of sub-5% mortgage rates may be over, which could threaten to depress already stagnant housing markets. A half-point rate increase adds about $30 a month to mortgage payments for every $100,000 borrowed. That could be enough to discourage some potential homebuyers from going through with purchases.

To figure out where mortgage rates are going, you have to watch the bond market. The price of a home loan closely follows the yield on the 10-year Treasury note. And Treasurys are trying to figure what direction they are heading.

"We had an ugly Treasury market the other day, which caused a flare up in mortgage interest rates," said Keith Gumbinger of HSH Associates, a publisher of mortgage data.

The government is currently issuing a great deal of debt -- otherwise known as Treasurys or bonds -- in order to pay for all its economic-recovery programs. But there haven't been as many buyers at recent auctions, which drove the yield on the 10-year note higher to 3.7% last week. It had stayed below 3% most of the year until late April, when the rate broke through the 3% barrier.

When supplies of Treasury bills increase - or demand for them falls - yields rise and price falls to draw in more buyers. "The demand for Treasurys won't grow [this year] as rapidly as the supply. Mortgage rates will take a direct hit. You can kiss 5% goodbye," said Stuart Hoffman, chief economist for PNC Financial Services, the nation's fifth-largest bank.

Price prop
The Federal Reserve has stated that it will prop up Treasury prices -- and tamp down yields -- by purchasing more longer-term Treasury securities over the next six months. It has committed up to $300 billion for that purpose.

But that still might be enough to keep mortgage rates from rising, according to Mark Zandi, chief economist for Moody's Economy.com. He said the Fed may need to spend closer to a trillion dollars to meet its goal.

Talkback: Lock in now, or wait?
Mortgage interest rates have been at historical lows all year, never surpassing an average of 5.25% (with 0.8 origination points and fee) before this week. But home sales have lagged despite these low rates, even with home prices at their most affordable levels in many years and a first-time homebuyers tax credit that, effectively, lowers purchase prices by up to $8,000.

Of course, the possibility of rising interest rates could convince people to buy, according to Tom Kunz, CEO of real estate agency franchiser Century 21.

"There's a segment of the market saying, 'Prices are still falling. I'll wait for the bottom,'" he said. "These people will probably miss the bottom. Even if they could save $15,000 or $20,000 on the purchase price, the savings could be wiped out by the rise in interest rates."

HSH Associate's Gumbinger argues that rates should plateau for a while, and that while they have risen, they are still very attractive - even if it doesn't feel that way to homebuyers trying to lock rates right now.

"We're coming out of emergency levels that we've been in so long they feel normal," he said. "Whether interest rates will remain at 50-year lows remains to be seen. But even if they don't, rates will still be favorable, just not as favorable."

Again, thanks CNN.

- Jim

www.NeighborlyRealty

www.NeighborlyFinancial

www.CashOutoftheBayArea.com

Can You Get a Loan Modification ??

2009-05-23T14:36:00.000-07:00

Yes neighbors, you can!

Take a look at this website:

http://www.bankrate.com/dls/news/mortgages/20090521_obama_loan_modification_a1.asp

It articulates the qualifications required to fit the Obama loan modification goals / programs.

If you qualify? WE CAN DO IT FOR YOU.

Outstanding!

Call Jim today at 916.801.3940

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Roseville Construction Update

2009-05-21T12:45:00.000-07:00

Hello Neighbors,

Just an FYI on the major Roseville construction projects in the works. You've seen the Kobra Properties work next to the Galleria.

Thanks,

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Roseville grants extensions to developers
May 15, 2009 - The Sacramento Business Journal

Developers of two large projects in Roseville now have more time before they have to build them after receiving two-year building permit extensions from the city’s Planning Commission Thursday night.

Steadfast Business Properties received an extension until March of 2011 for the Stone Point office project, which allows construction of two six-story office buildings in the Stone Point Master Plan on Eureka Road.

And Kobra Properties received an extension until January of 2011 for a conference center and 10-story Embassy Suites hotel.

The deadlines for construction for both projects had been previously extended by officials.

Loan Mods: Who Has Government Approval?

2009-05-21T11:14:00.000-07:00

Hello Neighbors,

As we sign our affiliation agreement to offer Loan Modification services, it's important for the general public to know who has been approved to perform these services.

This site: http://www.dre.ca.gov/mlb_adv_fees_list.html

Contains a list individual and corporate real estate brokers have submitted Advance Fee Agreements for Loan Modification and/or similar services to the Department of Real Estate for review and have received "no objection" letters regarding their use.

Our parent company for these services is on this list. You won't see "Neighborly Financial" or "Neighborly Realty" on the list, because we are affiliates of the larger company.

This site: http://www.dre.ca.gov/cons_drs.asp

Contains just the opposite. THESE ARE THE COMPANIES AND PEOPLE WHO HAVE BEEN CAUGHT SO FAR.

The following persons and entities have been served with a Desist and Refrain Order and/or Accusation by the Department of Real Estate resulting from a loan modification and/or foreclosure rescue transaction. In some instances, the person or entity has been ordered to stop providing loan modification and/or foreclosure rescue services because the person or entity is not licensed by the Department of Real Estate. In other instances, the person or entity has been ordered to stop collecting advance fees. Before considering engaging the services of any of the persons or entities listed below, it would be prudent to inquire about the disposition of the action that has been filed against the respondent. Further information regarding any administrative action may be obtained through the Sacramento Office at (916) 227-0906.

Be careful.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Short Sale Article – Not Totally Accurate

2009-05-21T09:53:00.000-07:00

Hello Neighbors,

An interesting article hit the streets yesterday from Money Magazine. THANK YOU Money Magazine.

70% of the information mentioned in this article is good.

30% is terribly wrong! Be careful.

We deal with short sales every day. Our area has some of the highest short sale rates in the nation.

If you want the straight scoop, call me.

To summarize a few of the incorrect points:

* They aren’t a “Deal”. In most cases, they are at market price. In fact, the perception that they are a deal often drives a huge number of offers in, at the beginning of the listing’s life. In realty, the bank probably hasn’t approved the price that the house is listed for. That’s right. The bank doesn’t usually get involved until the first offers are submitted – THEN they figure out what price they want. Meaning? The price in MLS may be totally arbitrary.

* Don’t call your agent (the Buyer’s Agent) weekly and be a “squeaky wheel” as noted below. That will accomplish nothing. The Seller’s agents is absolutely doing their best to get quick answers and prompt feedback. They have the most to lose if the short sale fails! The house will be taken away from them (as the listing agent), the home will be foreclosed on, and the house given to a foreclosure Listing Agent. They want this sale to close as much as you do. All that work and energy will have been a waste. Listing agent’s have NO control over this process, will fight hard, but won’t get much traction with the Seller’s lender no matter what.

* Probably half the Short Sales in our area are occupied by tenants. That's right, not owners. When the market was hot, many people thought they could become real estate investors over night. Wrong. Those "investors" are now in trouble, and short selling their property. Remember too - when a house is occupied by a tenant, showing the property becomes more difficult. We are required to give 24 hour notice, and often times Tenants WON'T LET US IN. Yep - Tenants don't often cooperate with their land lords.

* What this writer doesn’t tell you is the success rates of Short Sales. At last note, only 25% - 30% of homes listed as a short sale actually make it to the close of escrow. The rest fail with the lender in negotiation for the sale, fall out of escrow, or become abandoned by the Sellers.

Short Sales are out there in HUGE volumes where we are – and we try hard to get them. Yes, they do challenge our wages, but we try anyway.

Short sales - where a lender agrees to take less than it's owed on a mortgage - are rising sharply. Here's how you can profit.

(Money Magazine) -- When Brian Gavitt, a physician, and his wife Gayleen, a stay-at-home mom, started to eye homes in Sacramento last winter, they knew they were looking in the hardest-hit areas of the housing bust. So the couple, who were relocating from Lansing, figured they could land a fantastic bargain in no time at all.

The part about the bargain turned out to be true. The Gavitts bought a five-bedroom house in the upscale Natomas Park neighborhood ("Even now, you don't see FOR SALE signs up anywhere," says Gayleen.) And it was a steal at $300,000, a full $200,000 less than they would have paid just two years ago.

The amount of time it took to land the deal was another story. It was more than six months from when the Gavitts first saw their dream home to the moment they held the keys in their hands. The reason: The home they bought was a short sale.

Not long ago, few people had even heard of a short sale, which occurs when the bank agrees to discount the loan balance for a seller who owes more on his mortgage than the home is currently worth.

If you're in the market for a home today, you're almost guaranteed to be looking at some short sales. Nationwide, 14% of homeowners are currently underwater on their mortgages, calculates real estate website Zillow.com. And in many areas, it's far more: In the Gavitts' zip code, for example, over half of homeowners would owe more than their home is worth if they sold today, calculates Dee Schwindt, the Gavitts' realtor.

The good news is that short sellers are likely to still be living in the home and some may even be current on their payments. That means these aren't the run-down, distressed properties that you often find among foreclosures; in fact, there's a good chance that some of the most deluxe homes for sale in your market are underwater.

Before you get too excited about buying a short sale, know that they generally aren't, well, short. For the sale to go through, the seller's lender must approve the price and agree to take the shortfall as a loss. That extra step can cause the process to drag on three times as long as a normal home sale.

But as the Gavitts discovered, the hassles can be well worth it. Some buyers and realtors don't want to deal with short sales, leaving many choice homes with very few bidders. So if you're willing to brave the intricacies of the process, you'll be far more likely to land the home you always wanted. The key to snagging a good deal is knowing how to avoid the land mines.

Know what you're getting into. In a short sale, you are dealing with several parties: the sellers, their agent and the sellers' lender. That's why a short sale can take anywhere between two and six months to execute, compared with about 30 days for a typical sale. Though many banks are willing to take a loss on a mortgage in a short sale if it means avoiding an even bigger loss in a foreclosure, with so many owners trying to unload properties, the lender's negotiators are flooded with short-sale offers. So if you're moving or selling another property, keep in mind that you'll likely need to budget for a few months' worth of rental payments so you have somewhere to live in the interim.

Find the right pro. Lenders often make realtors who work on short sales take a hit on their commission, so some brokers may be loath to show you the listings. But don't even think about going solo. These deals take a lot of work and persistence, says Loni Parmelly, author of Success in Short Sales. Before you sign up with an agent, ask him how many short sales he's closed. If he hasn't done at least two, find someone more experienced.

Weed out candidates. In most cities, home listings will indicate in the description whether the property is a short sale. Ideally, you want to knock off ones that come with extra complexities. If possible, pass on any home that has more than one lien against it; having to negotiate loans with two lenders can greatly increase the amount of time it takes to complete the deal. Also avoid homes where the seller has other offers. That's because if another offer is pending, the seller's agent isn't likely to even submit yours for approval until the first one is rejected, meaning you'll have to wait for another negotiation to play out before you even get a chance.

Set the right price. The first step is to have your agent submit your offer to the seller. Don't just rely on the current list price to come up with your initial bid, says Bill Richardson, a district sales manager for the Keyes Co. Realtors in Boca Raton, Fla. The seller's agent may have far underpriced it in hopes of attracting buyers, but the bank likely won't accept a lowball offer. Ask your agent to determine the home's fair market value by searching comparable sales in the area, with an emphasis on other short sales and foreclosures (or get a rough estimate yourself at zillow.com). If the fair market value is lower than the list price, set your offer 10% lower than that.

At this point, you'll also want to get pre-approval for a mortgage; many banks won't even consider your offer if you don't have one, says Schwindt.
Protect yourself. Next, the seller's agent will submit your offer to the seller's lender. At this point, you'll be asked to sign a sales contract. See if the lender will agree to pick up all closing costs as part of the contract, says author Parmelly. Also ask your realtor to specify that you won't do an appraisal or inspection of the property until the offer is approved. That way you won't have to shell out hundreds of dollars until you know you realistically have a good chance of getting the home.

Finally, though most lenders will require you to make some kind of deposit along with the contract, don't put down more than $3,000 before your bid is accepted. That will give you room to put offers on other homes or even to pull out of the sale if it drags on for too long.

Be a pain in the neck. After your offer is submitted to the lender, you're likely to hear nothing for weeks, if not months. This is no time to relax. Call your agent at least once a week, and make sure the seller's agent is contacting the bank's negotiator nearly every day.

"These negotiators may have 400 files on their desk. They'll want to get rid of the squeaky wheels," says Parmelly, who worked as a loan negotiator for lenders for 16 years. To help the seller's realtor in her negotiations with the lender, it's a good idea to have your agent show her which comparable homes you used to arrive at your number.

If the clock keeps ticking and you're reaching the end of your rope, try playing hardball. After months, the lender the Gavitts negotiated with was still dragging its feet and their pre-approved loan rate was about to expire. "We said, 'We need an answer by Friday or we walk,' " Gayleen says. The bank responded by week's end.
Keep your eye on the market. When the bank finally sends its counter-offer, use it as a guideline rather than an ultimatum. Most of the time, the lender's number is based on its own research, that of a local realtor it hires and the outstanding loan balance. Usually its goal is to sell for at least 90% of the home's value, says Amy Bohutinsky, a spokes-person for Zillow.com.

The lender's offer may not be what you'd hoped for, but don't despair: You have a chance to counter. If the market has been flat since your initial bid, try for 5% to 10% less than the bank's number. If the market has been sinking rapidly, however, you may be able to prove that the home's value has shrunk further and offer even less. Once you have the lender's ear, the new offer should take less time to process.

Despite all the legwork and wait, the Gavitts are thrilled with their new home. "I'm glad people are turned off by short sales," says Brian. "It just means more choices for the rest of us."

Many thanks,

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Loan Modification Program - Would You be Interested?

2009-05-19T14:10:00.000-07:00

Hello Neighbors,

We have the option of teaming up with a very heavy hitter in the loan modification space.

Would this be of interest to you?

Please do let me know by emailing: Jim@NeighborlyRealty.com

DETAILS:

You know I find this segment of the lending industry to be a bit "fuzzy". In some respects, these loan mod guys are the new sharks. I truly believe many are the sub-prime lenders from a few years ago.

The DRE (Department of Real Estate) is scrambling to create new legislation to regulate these guys. There is a bunch of legal stuff in the works at the CA legislature level too. That business doesn’t require licensing of any kind, and their success rates aren’t as high as they should be. Those that take money first (before performing the service) are actually in violation of CA business code.

Through Neighborly Financial, we have the opportunity to become an affiliate of a larger organization.

They’ve covered some of my immediate legal fears right off the bat:

* They take their fees up front, BUT hold them in a trust fund and don’t pull from the fund until certain process points are reached.
* Their contract to do this (require the fees) has been approved by the Department of Real Estate.
* They do a quick “triage” at the beginning of the engagement to see if they realistically can help. If they can’t, they don’t take the up front fee.
* After spending the effort to get the mod done, If they fail in their effort they refund roughly 30% of the upfront fee to the borrower (the 70% has already been collected by them, used to pay staff and overhead while trying to get the mod done).
* Their account manager shared with me that their success rates are really high – 90% and above.

Knowing this segment of the lending industry is continuing to evolve - and because client's opinion drives so much of how we operate - what do you think? Is this service of interest to you?

It would allow us to offer another option to those of you who we can't help re-fi.

Please do let me know your thoughts via email to: Jim@NeighborlyRealty.com

Many thanks,

- Jim

www.NeighborlyFinancial.com

www.NeighborlyRealty.com

$8,000 Tax Credit Becoming "Cash"!

2009-05-19T14:03:00.000-07:00

Hello Neighbors,

This is great news! From our friends at CNN financial. Thank you CNN!

FHA is looking at altering the $8,000 tax credit so that Buyers can actually use those dollars as part of their purchase dollars!

California isn't mentioned, but it's likely we will be one of the first states to rollout this program after the trial period - our volumes are just too high to be ignored.

$8,000 fast cash for first-time homebuyers
HUD plans to tweak $8,000 tax credit rules so first-time homebuyers can get instant down-payment assistance.

By Les Christie CNNMoney.com staff writer
Last Updated: May 19, 2009: 12:45 PM ET

NEW YORK (CNNMoney.com) -- Home prices are cheap. Affordability is at a record high. And the market is littered with distressed properties looking for a buyer.

But there is one big obstacle for many first-time house hunters looking to take advantage of the market: cash for down payments. The typical first-time buyer has only saved enough to cover 4% of the purchase price, according to the National Association of Realtors.

As part of the stimulus package, Congress created a refundable first-time homebuyers tax credit in hopes of helping on-the-fence buyers to take the home-purchase plunge. But buyers couldn't collect the $8,000 credit until tax time, rather than at closing time - when it's needed.

Now the U.S. Department of Housing and Urban Development is planning to change that. The agency is working on a plan that will allow Federal Housing Authority-approved lenders to provide buyers with the tax credit cash up front.

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment," said Shaun Donovan, HUD secretary, in a speech last Tuesday before the National Association of Realtors.

States first
Donovan did not reveal many details, but the plan could be modeled after programs in Colorado, Missouri, New Jersey, Pennsylvania, Tennessee and Washington. To quickly infuse cash into their housing markets, these states created "bridge loans" that allow buyers to borrow against the $8,000 credit and then repay it with their tax refunds.

The first state to launch such a plan was Missouri, which rolled out its Missouri Housing Development Commission Tax Credit Advance Loan program on January 14 - a month before Congress approved the stimulus package. Since then, Missouri has approved applications by more than 300 borrowers and closed on 128 of them.

Lamar Cherry and his wife, Chrishanna, used the program to augment their down payment when they bought their home in Kansas City.

The couple purchased a four-bedroom, three-bath split-level home for $150,000, putting about 6% down. Much of that $9,000 came from the loan program, which they tapped so they wouldn't have to drain their reserves.

"We had money saved up that we were going to use for the down payment," said Cherry. "Now we can use some of that to buy some things we need for the house."

At closing, the Cherrys, like all buyers in the program, signed for their first mortgage, plus a second mortgage issued by the state. The second note is good for 6% of the price of the home, up to $6,750; there is a $350 set-up fee, but no interest is charged if the debt is repaid by June 2010.

In Missouri, borrowers can only access $6,750 of the $8,000 credit for down payments. "We wanted them to have a cushion below that $8,000 in case other tax liabilities show up," said Greg Spurgeon, the single-family homeownership administrator for the Missouri Housing Development Commission.

If borrowers don't pay off the note, it becomes a 10-year fixed-rate mortgage with an interest rate one-half percentage point above that of their first mortgages. For example, borrowers paying 6% on their first mortgages would be charged 6.5% on the second.

So far, Spurgeon said, a significant proportion of participating homebuyers have repaid their loans. He expects most of the others to do the same before the deadline.

Cherry has claimed the federal tax credit on his 2008 taxes, but he hasn't gotten his refund yet. He definitely intends to repay the loan before the 2010 deadline because, he said, not doing so would add about $75 a month to his house payments.

Thanks again to our friends at CNN.

Timing for all of this? Not known. As a Buyer, there may be advantages to waiting, but how will Supply of homes be in a few months? We don't know. The moratorium on foreclosures has really dried up supply.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Sacramento Recovering?

2009-05-07T12:56:00.000-07:00

Hello Neighbors,

Take a look at this video from CNN:

http://www.cnn.com/video/#/video/us/2009/05/06/simon.ca.housing.cnn

Are we recovering? Perhaps.

I think the note about the unemployment rate is very important.

I also know that we are VERY LOW on inventory right now under the $200,000 price point - less than 2 "months of supply" at current sales rates.

When offering on property under that price, you should absolutely continue as “business as usual” no matter what home you offer on. You should be prepared to offer on several homes (unfortunately).. and continue looking once your first offers are submitted.

The competition below the $200k price point is getting even more fierce. I was at a Finance meeting this morning at SAR (Sacramento Association of Realtors) for mortgage lenders… they reiterated what we are seeing – homes below the $200k price point in Sac County are generating a dozen offers, and quite frequently one is “all cash” from an investor. There were 70 mortgage lenders in this session, and nearly all agreed that’s the state of the market. Wow.

Hang on Buyers. If you are "on the fence"? Get going.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

HUGE Changes in Foreclosures, Government Mandated

2009-04-28T20:34:00.000-07:00

Wow Neighbors,

EXCITING NEWS (and huge!) for those of you trying to stay one step ahead of tough financial times.

BAD NEWS for those Buyers out there who are waiting for the "next wave" of foreclosures to bring more housing supply to the market.

This WILL slow down Short Sales as well.

Read these details carefully (from our friends at CNN - thanks CNN!).

Obama Expands Foreclosure Fix

Two steps: Second liens now covered by modification program; servicers must offer eligible borrowers principal reduction under Hope for Homeowners.

NEW YORK (CNNMoney.com) -- The Obama administration said Tuesday it is expanding its foreclosure prevention program to cover second mortgages and to direct more troubled borrowers to the Hope for Homeowners program.

Announced with great fanfare in mid-February, the president's $75 billion program has gotten off to a slow start. Loan servicers only recently started taking applications and many delinquent borrowers have complained about being left in the cold because their home values have dropped or they've lost their jobs.

The administration is seeking to address some of the concerns by tweaking the original modification plan, which calls for adjusting eligible borrowers' loans so monthly payments are no more than 31% of pre-tax income.

Servicers covering 75% of the nation's mortgages are now participating in the program, which also allows some homeowners with little or no equity to refinance their mortgages, a senior administration official said Tuesday. Together, the plans are expected to help up to 9 million avoid foreclosure.

Second Mortgage Roadblock

During the housing frenzy, many borrowers obtained second mortgages to allow them to put little or nothing down when buying a home. Up to half of at-risk borrowers have second liens, according to the administration.

These loans have complicated the modification process. For one thing, they add to troubled homeowners' debt levels. Also, mortgage investors have balked at reducing payments on first mortgages when the second loan was left intact.

Under the administration's new program, the interest rate on second mortgages will be reduced to 1% on loans where payments cover interest and principal and to 2% for interest-only loans. The government will subsidize the rate reduction, with the money going to the mortgage investor.

Servicers will be paid $500 for each modification and an additional $250 annually for three years if the borrower stays current. Borrowers can receive up to $250 per year for five years to pay down their first mortgage.

Investors can also receive a payment in exchange for extinguishing the second lien. They would receive 3 cents on the dollar for loans more than 180 days delinquent and between 4 cents and 12 cents for less delinquent loans, depending on the borrowers' debt levels.

Servicers who join the new program must modify second loans when a borrower's first mortgage is adjusted. It will likely take a month to implement, but it should not slow down the modifications of primary mortgages, the administration said.

"By bringing both the first lien and second lien program together, we can reduce monthly payments for borrowers and make it much more likely that they can stay in their homes," a senior administration official said.

Hope for Homeowners Option

Also Tuesday, the administration said it is now requiring servicers to offer troubled borrowers access to Hope for Homeowners as a modification option if they qualify.

Expanding Hope for Homeowners would address one of the major holes in the original Obama foreclosure prevention plan. It helps homeowners whose homes are now worth far less than their mortgages.

Servicers had balked at participating in the Hope program because it required they reduce the mortgage principal balance to 90% of a home's current value.

Hope for Homeowners, which began in October, is being revamped in Congress. Servicers would have to reduce the principal to 93% of the home's value. The change would also reduce the program's high fees, which turned off many troubled borrowers.

As an incentive to participate, servicers will be paid $2,500 for each refinancing, while lenders who originate the new loans will receive up to $1,000 a year for three years, as long as the loan remains current.

Separately, however, another pillar of the president's plan appears to be headed for defeat this week. The Senate is not expected to pass legislation allowing bankruptcy judges to modify mortgages. The administration had sought this change to pressure servicers to modify loans before borrowers declare bankruptcy.

How will all of this impact you? How will it impact your future housing options? CALL ME. I'd like to share some thoughts.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

Banks Out of the Real Estate Business

2009-04-28T16:01:00.000-07:00

Hello Neighbors,

Wow is this good news for the consumer. For the last several years, the National Association of Realtors has been fighting hard to keep banks out of the real estate business.

That seems self centered, but WOW am I thankful this has come to an end.

All we do now is deal with banks - whether it is on property they now own through foreclosure, or through property they have to be involved with due to a Seller's short sale status.

NOTHING is more painful than dealing with these banks. It's terrible. Point in case - our agent Juli just closed an escrow on a bank owned property yesterday THAT LASTED 7 MONTHS! That's right. This one escrow went 7 months because the banks simply couldn't manage the transaction. They are understaffed and under skilled. It goes against all common sense – but don’t get confused with logic. Banks still don’t have it figured out.

Realtors Gain Victory on Banks in Real Estate

NAR’s 8-year battle to keep national banking conglomerates out of the real estate brokerage and management business ended with a win in March when President Barack Obama signed the 2009 Omnibus Appropriations Act. The legislation permanently prohibits banking regulators from taking any action that would make real estate brokerage and management permissible lines of business for federally regulated banks. “This is a great victory for the real estate industry and consumers,” says NAR President Charles McMillan. If banks had been allowed to engage in real estate brokerage, it would have created anti-competition and anti-consumer concentrations of power within the financial services sector, according to NAR.

I'm all for a free market economy, creating competition, and letting the consumer benefit. BUT banks in real estate? It's been nothing but headache and heartache these past couple of years. Ask my clients who have over a dozen offers out, who have waited and waited for responses from banks / lenders, AND who have lost their own loans just a couple of weeks after getting pre-qualified.

Banks don't understand the real estate transaction. They can't get it done. Keeping them at arms lenght from this business is a win for everyone, especially Buyers.

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

1-800-960-0860 - A New Information Service !!

2009-04-21T09:33:00.000-07:00

Hello Neighbors,

Just an FYI.

Please make a note of this toll free telephone number: 1-800-960-0860

It is our newest vehicle to get you up to date industry information. Much like this blog, we do our best to get you current news in a manner that fits your schedule. This new toll free number is available 24 hours a day, with messages we've recorded.

Stay tuned. As we create more informational messages, we will get the word out through this forum (blog), our web site, and email.

PLEASE - if you have a topic you would like to hear about, let me know! Drop me an email at Jim@NeighborlyRealty.com or call at 916.801.3940.

Many thanks, and happy calling!

- Jim

www.NeighborlyRealty.com

www.NeighborlyFinancial.com

From CNN: "Signs of Life in California Real Estate"

2009-04-03T20:27:00.000-07:00

Hello Neighbors,

This just in from our friends at CNN.... and we are experiencing this on a daily basis! Lots of folks asking to see property, lots of shopping, and offers going out on a daily basis - almost faster than we can manage!

Signs of life in California real estate

There's is a lot of activity out on the coast that may indicate a reawakening of the housing market there - and across the country.

By Les Christie, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- No state has been harder hit by the housing bust than California.

It has piled up more foreclosures and has endured among the worst home-price declines. The median price of a single-family home sold in February was $247,590, down 41% from 12 months earlier, according to the California Association of Realtors (CAR).

And home construction in the Golden State has nearly vanished: December housing permits shrank to about a quarter of what they were during the boom years, according to the National Association of Homebuilders.

But there are signs that California's housing market may be coming out of this tailspin: Sales volume is increasing, investors are returning and inventory is shrinking.

Bringing back buyers

Low prices have brought out droves of buyers. In February, they purchased more than 600,000 homes, some 80% more than they bought in February 2007, according to CAR. And most of this activity is where prices are off 40% to 60% from their peaks.

In the Sun City area of Riverside County, for example, prices have fallen more than 35% over the past 12 months. Two-thirds of February's sales in the area were of foreclosed properties owned by banks, according to Chuck Whitehead, broker with Coldwell Banker Associated Brokers.

"The sales rebound is largely centered around areas that have experienced the biggest impact from the subprime crisis," said CAR chief economist Leslie Appleton-Young.

How low can home prices go in your city?

In more stable communities, where fewer homes were saddled with toxic mortgages, prices have not crashed as badly and sales are rebounding more slowly. But foreclosures still account for a significant portion of sales, according to Phil Jones, a broker with Coldwell Banker Coastal Alliance in Long Beach.

Most analysts foresee continued price declines in California, according to Nicholas Retsinas, director of Harvard's Joint Center for Housing Studies. "But [there'll be] a slowing of that decline, which portends the end of price drops."

That may already be happening in Long Beach, according to Jones. The measure he uses to judge market trends there, price per square foot, turned up in February, growing 5% to $360.

"Every one of my agents is very busy," Jones said.

Investing 2.0

Another positive sign that markets don't have much further to fall is that investors are returning to some markets.

"I spoke with one investor who is putting together a group of buyers and they're ready to get back into the market," said Jones. "They're planning to buy single-family homes in bulk."

John Dugan is one such investor. The San Francisco-based medical supplies salesman is using a portion of his Entrust Group-managed IRA to buy townhouses in the Sacramento area.

So far he's purchased three 840-square-foot, two-bedroom, one-bath duplexes. He paid just $35,000 to $80,000 a piece - down from their $180,000 to $200,000 selling prices a few years ago.

He paid cash for the first property and rents it out for $750 a month, a profit of $550 after dues and common charges. That's a 19% return on investment, without figuring on appreciation.

"This kind of pricing is something you only think of as Midwestern, not Californian," he said.

Supply dropping

The booming sales have whittled away existing home inventory to just six and a half months - down from 15 months a year ago.

"Typically, I would describe a normal market as having a six to seven month supply of homes," said Appleton-Young. "We have that now."

California's inventory now compares favorably with the rest of the nation, where there's a 9.7 month supply of homes on the market, according to the National Association of Realtors.

One wildcard, however, is that banks have kept many repossessed homes off the market. "Banks are spoon feeding them out very slowly so they don't overload the market," said Whitehead. But, he added, if they release a lot of properties during the heavy spring buying season, they "will be eaten right up by buyers."

Could the end be near?

All of those factors add up to a more optimistic forecast for California, which is seen as a harbinger of things to come for the rest of the country.

Appleton-Young said that while home prices should continue to decline for the rest of 2009, she predicts that the pace of decline will slow. In total, she's predicting a total loss of 19% for the year. But, "I think we could see home price stabilization by early next year," she said.

If that happens in California, it could spread to the rest of the hard-hit Sun Belt markets - and beyond.

"California was the pace setter for lots of the mortgage products that went toxic," said Retsinas. "The sense is if the problems can be addressed there, the rest of the country will follow."

Thank you CNN !!

- Jim

www.NeighborlyRealty.com
www.NeighborlyFinancial.com

Clos du Lac Visitors - Nice to See You!

2009-03-23T17:48:00.000-07:00

Hello Neighbors,

Many thanks to the dozen+ families who stopped by our open house in Clos du Lac yesterday. We enjoyed meeting and talking to you.

If you have any questions about that home, please do give us a call.

If you have any questions about the markets in general, we are here to help.

Our apologies if we didn't get to talk in depth. John and I were very surprised at the level of turnout.

Funny.... the common thread for 70% of our conversations? The Obama bailout activity! The themes among all of you were pretty much the same...

So?

Keep an eye on this spot! As we learn more on these plans / activities, we share them through this forum.

Thanks again for your time yesterday,

- Jim

www.NeighborlyRealty.com
www.NeighborlyFinancial.com

Straight From the IRS - Credits for Buyers

2009-03-21T13:31:00.000-07:00

First-Time Homebuyers Have Several Options to Maximize New Tax Credit

WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service today began a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer credit for 2009 home purchases. For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.

The Treasury Department encourages taxpayers to explore these options to maximize their credit and get their money back as fast as possible.

“The new credit can get money in the pockets of first-time homebuyers quickly,” said IRS Commissioner Doug Shulman. “For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.”
First-time homebuyers represent a significant portion of existing single-family home sales. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.

Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

The filing options to consider are:

• File an extension — Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.

• File now, amend later — Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.

• Amend the 2008 tax return — Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.

• Claim the credit in 2009 rather than 2008 — For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

IRS.gov provides more information, including guidance for people who bought their first homes in 2008. To learn more about the overall implementation of the Recovery Act, visit www.Recovery.gov.

Another Special Loan Program - USDA

2009-03-14T19:24:00.000-07:00

Hello Neighbors,

With much thanks to one of our newest agents - Marjorie Suzanne', we've just added another "Special Loan Program" link (to the right).

The URL for this link is:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

What is this program for?

Special home loans for areas that the government qualifies as "rural". What defines rural? Well... take a look at their website and see!

You might be surprised. Parts of Placer County, Sacramento County, Yolo & Yuba Counties, and of course Nevada & El Dorado Counties can all qualify.

Give it a shot, and let us know what you think!

Many thanks,

- Jim

www.NeighborlyRealty.com

More on the Bailout: Buyer Incentives & Tax Credits

2009-03-10T20:11:00.000-07:00

Hello Neighbors,

For those of you who have registered on our website for property searches and industry news, you've seen this update. It went out from our web engine within the last 24 hours.

For those of you who haven't yet registered with the web site, here is an update and some analysis Buyer incentives. It's all part of the waves of new legislation and bailout planning.

Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Credit Versus Tax Deduction
It's important to remember that the $8,000 tax credit is just that; a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if you as a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.

Better still, the tax credit is refundable, which means you as a homebuyer can receive a check for the credit if you have little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit; and still receive a check for the remaining $4,000!

Phaseout Examples
According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

To break down what this phaseout means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Homes that Qualify
The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.

Higher Loan Amounts
More good news - there is an extension on the additional tier of conforming loan amounts which had been first established in 2008. This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750. These loans will again be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard jumbo loan rates.

Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs - This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings - This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing - This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance - This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama's plan to help struggling borrowers before they are faced with a default on their mortgage.

According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That's because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

We will continue to update you as more news and analysis becomes available.

Watch this space for further details!

- Jim

www.NeighborlyRealty.com

Lowering Your Property Taxes - It's Already Happening

2009-03-05T15:23:00.000-08:00

Hello Neighbors,

You've probably received the mailers, most are from businesses in Southern California: "Challenge your property taxes now, for only $179.00".

DO NOT DO THIS

It is a scam.

Confirmed this morning by Ken Stieger, Sacramento County Tax Assessor. In fact, the Sacramento County DA and others are working with the Los Angeles DA to go after these companies.

Unfortunately, these companies are popping up faster than they can be shut down (I think it's where the sub-prime mortgage brokers from a few years ago are now operating!).

In 2008, Sacramento County re-assessed and lowered property tax base values on 85,000 residential properties (homes) - AUTOMATICALLY.

In 2009? They are predicting a lowering of 130,000 residential properties - again, AUTOMATICALLY.

How does this work?

We've all heard about Proposition 13. What you may not know about is Proposition 8. That was passed at a similar time, and stated that property tax baseline values would be reset during periods of non-growth.

That's right.

Of the roughly 400,000 residential properties in Sacramento County, over 1/3 are going to be reset automatically as part of the processes built in to the County Tax Assessor's procedures.

Where are these value re-sets ending up? On average? Equivalent to property values (and tax bases) from the years 1999 and 2000.

Nice.

- Jim

www.NeighborlyRealt.com

150 Foreclosures in 2006. 2008? 18,000+ !!!

2009-03-05T15:07:00.000-08:00

Hello Neighbors,

We had a great guest speaker at this morning's SAR (Sacramento Association of Realtors) Real Estate Finance Forum: Ken Stieger, Sacramento County Tax Assessor.

Yep, the guy who runs the shop for Sacramento County. His group (about 170 staff) set your property tax values. We talked about the processes, the billing cycles, and the data....

For Sacramento County:

* In 2006, there were 150 foreclosures TOTAL during that 12 month period.

* In 2008, there were 18,000+ foreclosures during that 12 month period!

* September of 2008 saw a little over 2,000 homes get foreclosed on.

Stunning.

He showed graphs and graphs of good trend data.

2009 foreclosure rates are WAY below 2008.

Let me say that again - to you Buyers on the fence - 2009 foreclosure rates are WAY below 2008. Regardless of what you hear in the media, the county data shows that banks / lenders ARE working with home owners to save their homes.

If you are waiting for huge waves of foreclosures, we'll still see them... but it will be below the rates of 2008. Hopefully we've turned the corner - which also means huge price reductions will cease.

If you are chasing REOs (foreclosed properties), take note of this trend.

- Jim

www.NeighborlyRealty.com