10 Real Estate Predictions for 2009

10 Real Estate Predictions for 2009 
2009 is likely to be a year of continuing adjustment to a changing real estate marketplace. Prepare yourself and your business with these predictions from HGTV’s FrontDoor.com Web site. 

• Sellers will continue to face falling home values in the new year because they’ll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.

• The Obama administration will act on its plan to crack down on abusive lending practices.

• Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate's Joint Economic Committee has predicted two million foreclosures in 2009.

• Banks' restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.

• Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.

• The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages, and credit enabling better decision-making going forward.

• Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.

• Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.

• Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.

• The recession will end and buyers will regain confidence in the market.

Source: Frontdoor.com (12/03/08)

Emergency Economic Stabilization Act May Help Homeowners:

Emergency Economic Stabilization Act May Help Homeowners: Enacted on October 3, 2008, this historic federal legislation earmarks $700 billion for the Treasury Secretary to purchase troubled assets from financial institutions. The Secretary and other federal agencies are also charged with the task of mitigating foreclosures for mortgages and mortgage-back securities and encouraging loan modifications. Furthermore, this law strengthens the FHA-insured refinance loans for troubled mortgages under the HOPE for Homeowners program, including authority for the program's board of directors to increase the maximum loan amount above 90% of the appraised value. This bill also extends the tax exemption for debt forgiveness on home loans under the Mortgage Forgiveness Debt Relief Act of 2007 from December 31, 2009 to December 31, 2012. Source: H.R. 1424.

Debt Relief Income Exempt from State Income Tax:

Debt Relief Income Exempt from State Income Tax: Starting September 25, 2008, the federal income tax exemption for debt forgiven on a home loan now applies to state income taxes to a limited extent. Federal law provides a tax exemption for debt forgiveness on a loan incurred for acquiring, constructing, or substantially improving a principal residence up to $2 million if the debt is discharged from 2007 through 2012. Under the new California law, the maximum qualifying debt is only $800,000, not $2 million, and the maximum exclusion is $250,000. Moreover, the California law only applies to a debt discharged in 2007 or 2008. Senate Bill 1055.

GREEN TIP OF THE WEEK: CONFUSED ABOUT PLASTICS?

You're not alone. Experts have reached a consensus and recommend that you avoid these varieties -- identified by a triangle and number on the bottom of most containers -- for the following reasons:

#3 Polyvinyl Chloride (PVC) commonly contains di-2-ehtylhexyl phthalate (DEHP), an endocrine disruptor and probable human carcinogen, as a softener.

#6 Polystyrene (PS) may leach styrene, a possible endocrine disruptor and human carcinogen, into water and food.

#7 Polycarbonate contains the hormone disruptor bisphenol-A, which can leach out as bottles age, are heated, or exposed to acidic solutions. Unfortunately, #7 is used in most baby bottles and five-gallon water jugs and in many reusable sports bottles

GREEN TIP OF THE WEEK: TOILET DAMS

If water-saving or dual-flush toilets are not in your office or home improvement budget, then place one or two plastic containers filled with stones in your toilet's tank. This intermediary step will displace a significant amount of water use over the course of a year.

Barbara Wibe, e-PRO, REALTOR
"it's the little things that make a difference"

Cell: 619.850.4174
e-Fax: 619.512.5156

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

GREEN TIP OF THE WEEK: PLASTIC LININGS IN CANS

After years of public protest and mounting scientific evidence, the government of Canada made a precedent-setting announcement by banning a known toxic chemical from baby bottles. The chemical, bisphenol A (BPA), is commonly found in plastic baby bottles, hard plastic sippy cups, reusable water bottles, the lining of some food cans, and dental sealants. Bisphenol-A, is present in the majority of canned foods. The thin plastic lining found in canned goods contains traces of BPA that can migrate into food. One way to avoid BPA-lined cans is to purchase foods packaged in Tetra Paks, aseptic cartons made from layers of paper, aluminum, and polyethylene.

GREEN TIP OF THE WEEK: LIGHT-EMITTING NOEL

It's a fact: Christmas decorations will cause a spike in your electricity bill. This year, consider purchasing strings and strands that contain light-emitting diodes, which use 99 percent less electricity than traditional bulbs.

"​Makin​g Real Estat​e Simpl​e"​
MyRea​ltorB​arbie​.​ com
Barba​ra Ann Paul-​Wibe
My Cell:​ 619-​850-​4174

HAPPY​ HOLLI​DAYS!​!​

Mortgage & H4H Update

· Early projections indicate that only 20,000 troubled homeowners will apply for the “Hope for Homeowners” program, a considerable reduction from the previously estimated 400,000 homeowners who were expected to apply. The $300 billion program was launched Oct. 1 and is designed to help troubled homeowners rewrite a “risky” mortgage loan into a 30-year, fixed-rate loan with a lower interest rate. During the first two weeks of the program, the Federal Housing Administration, which oversees Hope for Homeowners, reported receiving only 42 applications. Some housing experts believe the low application rate is due to the program being voluntary for lenders and provisions requiring homeowners to agree to an equity share with the government.

To read the full story, please click here:
http://www.latimes.com/business/la-fi-hope4-2008nov04,0,5527840.story


· Less than half of homeowners with mortgage loans through IndyMac have responded to offers from the Federal Deposit Insurance Corporation (FDIC) to lower loan payments and interest rates. The FDIC, which is running IndyMac, mailed 35,000 letters offering homeowners an opportunity to rework the terms of their mortgages. The goal is to reduce the monthly payment on a loan, including taxes and insurance, to no more than 38 percent of the borrower’s pretax income. The FDIC is prepared to implement the following: reduce the interest rate to as low as 3 percent; extend a loan’s terms to 40 years; and waive interest on a portion of the mortgage balance.

To read the full story, please click here:
http://www.latimes.com/business/la-fi-indymac31-2008oct31,0,5613024.story


· JPMorgan Chase & Co. has reported that it is instituting a 90-day foreclosure freeze while it searches for ways to make payments easier for consumers. The program may enable up to 400,000 borrowers to reduce their interest rates or principal amounts. The bank also will open 24 mortgage counseling centers in areas with the highest delinquency rates. JPMorgan also is planning to hire 300 loan counselors to work with delinquent borrowers and employ approximately 150 additional staffers to review each mortgage prior to sending it through the foreclosure process. The program offer is extended to borrowers who have loans through Washington Mutual Inc., and clients of EMC, a mortgage unit of Bear Stearns Companies. Both companies were acquired by JPMorgan in recent buyouts and takeovers.

To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aR3.7ix83s6s&refer=home


· Bank of America, which acquired Countrywide in July, said that nearly 400,000 troubled homeowners who have subprime mortgages and option adjustable-rate loans through Countrywide may be eligible for loan modifications. To be eligible for the Bank of America plan, homeowners must occupy the home as their primary residence; the mortgage must be seriously delinquent — or likely to become so; and the loan must have been serviced by Countrywide and originated prior to Dec. 31, 2007. Bank of America will help borrowers by restructuring first-year payments of principal, interest, taxes and insurance to no more than 34 percent of the borrower's income; halting foreclosure sales against borrowers who are likely to qualify for a loan modification; and waiving restructuring fees and prepayment penalties.

To read the full story, please click here:
http://www.usatoday.com/money/economy/housing/2008-10-06-countrywide-mortgages-settlement_N.htm

...The Best Time to Buy a Home... ???

The best time to buy a home

Recent economic reports and the continued decline of home prices have caused some home buyers to stay on the sidelines and try to time the market so they can purchase a home at an affordable price that will not reduce in value, and will appreciate quickly.  However, many housing advisors recommend that home buyers not try to time the market, but instead purchase a home when they are ready.  

MAKING SENSE OF THE STORY FOR CONSUMERS

·     Despite rising foreclosures, delinquencies, and unemployment rates, and declining home prices,   sales of new and existing homes are improving, which is causing some home buyers to try to “time the market.”  Many housing analysts advise potential home buyers not to base their homebuying decision on economic reports, but rather to take their time finding the right house and to focus on getting their financing in place.

 

·     Most economists believe that home prices will continue to decline during 2009.  C.A.R. predicts that the median home price in California will decline an additional 6 percent next year.  Home buyers need to remember that real estate markets are local and prices differ neighborhood to neighborhood. Many REALTORS® advise their clients to visit communities that interest them, and to talk to homeowners, business owners, and financial institutions to become familiar with the area.

 

·     Credit restrictions and loan underwriting standards tightened during the credit crunch, resulting in mortgage loans taking longer to process and fund.  Most lenders are requiring more information about income, assets, and expenses than in previous years, so home buyers are advised to get preapproved for their mortgage loan instead of applying once they have identified their ideal home. (source CAR)

GREEN TIP: CLEAN YOUR FRIDGE'S COILS

Cleaning the back of your fridge--the coils and electric circuitry--increases energy efficiency. A refrigerator with dirty coils works harder, and that means an extra 25 percent more energy use and CO2 emissions as compared with a fridge with clean coils.

RADICAL SHIFT IN LIFESTYLE COMING

"I have been working with way too many clients over the last several months who are in severe financial straits. One thing that I keep reminding them of is that they have to stop judging themselves by what they have; rather, they need to judge themselves by who they are. Having to give up material things does not make anyone a bad person. Recognizing that they can still put food on the table, clothes on their family's back and a roof over their heads helps to put everything into perspective. Yes, we are going to have to undergo a radical shift in our American lifestyle. But, even with this shift, most of us will still be living far better than 95 percent of the other people on this planet. We should be very thankful."

 --Peter J. Pike

New Demands Make Mortgages Harder to Get ...

New Demands Make Mortgages Harder to Get 
Even home buyers with good credit are having trouble getting mortgages with terms they find attractive. 

Lenders are demanding much higher down payments, often about 20 percent, and sometimes even higher. Jumbo home loans, ranging from $417,000 up to $750,000, depending on the local market, are particularly hard to find because private banks are no longer investing in them.

Properties, as well as buyers, are facing extra scrutiny. Some lenders now require a second appraisal to reassure them of a property’s true value, slowing the buying process and increasing closing costs by hundreds of dollars.

Plus, the wave of consolidation among financial institutes has led to confusion and further delays over mortgage processing. 

Source: USA Today

Mortgage shock? Adjustable rates tied to LIBOR, COFI, other indexes

With approximately 60 percent of outstanding adjustable-rate mortgage (ARM) loans set to the London Inter Bank Offered Rate (LIBOR), nearly 25 percent linked to average yields on certain Treasury securities, and 15 percent set to measures like the Cost of Funds Index (COFI), more homeowners are reacquainting themselves with the type of ARM they have and considering refinancing options such as 30-year, fixed-rate loans.

· It is important that homeowners who have adjustable-rate mortgages (ARMs) are aware of the index to which their mortgage is linked, as this determines the monthly payments. Payments of loans tied to the LIBOR, which is in the interest rate that banks charge each other to borrow money, could increase if the loan resets in November or December because of the recent increase in the index's rate. Most ARMs are set to the one-month, three-month, or six-month LIBOR. Homeowners who are concerned about possible payment increases should contact their local bank, credit union, or mortgage broker to rewrite their ARM into one with a fixed interest rate, if possible.

· Rates on adjustable-rate mortgages are determined by two factors –the loan's index (LIBOR, COFI, Treasury) and the lender's margin. A guideline to help determine the new rate when a loan resets is to add the lender's margin to the new index. For example, if a homeowner's ARM resets according to the six-month LIBOR index, which was 3.70 percent as of Oct. 22, and the lender's margin is 2.5 percent, then the new rate would be 6.20 percent.

· Some mortgage brokers recommend that homeowners who have ARMs and are unaware of to which index their loan is set, should review their loan documents again to determine if they should consider refinancing into a new loan with a fixed rate or possibly one linked to a different index.

To read the full story, please click here:
http://www.mercurynews.com/localnewsheadlines/ci_10830812?source=rss

JUST LISTED

Green Tip of the Week: Front Loaded Savings

FRONT-LOADED SAVINGS
In the market for a new washing machine? Choose an ENERGY STAR variety, of course, but also opt for an horizontal-axis (front-loader) washing machine, which uses far less water and 60 percent less energy than top-loaders.

List of Lenders Who Are Participating in the HOPE for Homeowners (H4H) Program

List of Lenders Who Are Participating in the HOPE for Homeowners (H4H) Program

 

 

NOTE: Homeowners, contact your existing lender and/or a new lender to discuss how you may qualify for the H4H program.

The lenders listed below have indicated an interest in refinancing loans under the HOPE for Homeowners program.  When contacting any of the lenders listed below,you are strongly encouraged to contact your servicing lender and any subordinate lien holders since their participation is vital for you to refinance into a HOPE for Homeowners mortgage.  It is important to remember that the HOPE for Homeowners program is voluntary and your servicing lender may offer different solutions for avoiding foreclosure. 

When contacting any lender on this list, please use the contact information provided.  Do not give anyone money or pay any fees until you have spoken with your existing lender and know it is participating in the HOPE for Homeowners Program.

If you are experiencing difficulty in communicating with your current servicing lender and/or subordinate lien holders, you may wish to contact a housing counseling agency to ask for advice and assistance in reaching a mutually agreeable solution for avoiding foreclosure.

To view the list of lenders who are participating in the HOPE for Homeowners program click on the link below. Your browser will open a PDF document. 

The H4H Lender List was updated on October 28, 2008. We will refresh the list on most Fridays.  

CLICK HERE FOR THE UPDATED LIST LINK>>

http://portal.hud.gov/portal/page?_pageid=73,7605762&_dad=portal&_schema=PORTAL

 

GREEN TIP OF THE WEEK: RECHARGEABLE BATTERIES PLUG INTO USB PORTS

GREEN TIP OF THE WEEK: RECHARGEABLE BATTERIES PLUG INTO USB PORTS 
Want an alternative to using disposable batteries, which leak toxic wastes into landfills and ground water? USB Cell produces rechargeable AA batteries that do not require adapters or cables, but instead can be inserted into your laptop's USB port, or other USB port, and be recharged hundreds of times. Visithttp://usbcell.com/ or
http://www.terrapass.com/green-store/gadgets-chargers/ for more info.

October Gallery

Central Banks Coordinate Global Cut in Interest Rates

Central Banks Coordinate Global Cut in Interest Rates
Hoping to thaw the current credit freeze, the Federal Reserve, the European Central Bank, the Bank of England, and the central banks of Canada and Sweden reduced their primary lending rates by a half percentage point Wednesday. The Chinese central bank also reduced its key interest rate and lowered bank reserve requirements, while the Bank of Japan’s rates remained unchanged.

MAKING SENSE OF THE STORY FOR CONSUMERS

· The purpose of the rate cut is to increase consumer confidence, which in turn should help stimulate the economy. When consumers and businesses have more confidence in the economy, they usually spend more money, which bolsters the economy by enabling retailers to increase sales and prevent future layoffs.

· The Federal Reserve controls the interest rate that banks charge each other for short-term loans. Usually this leads to banks lowering the rates they charge consumers and businesses. The short-term loan-rate reduction, from 2 percent to 1.5 percent, should have an almost immediate effect on credit-card rates, according to financial analysts. Interest rates on automobile and business loans also should decline. Generally, the short-term loan-rate reduction also leads to a reduction in mortgage rates; however, it is too soon to predict if that will happen in this case given the way the market has reacted to recent economic news.

· Some credit card companies already have reduced their credit card rates. Although there may be room for further reductions for some consumers, many experts believe that only consumers with the best credit scores and payment history will benefit from the rate reduction. Most credit card companies deem consumers with high credit scores as providing the least amount of risk.

· Consumers with fixed-rate mortgages will not benefit from the rate cut; however, those with adjustable-rate mortgages (ARMs) may. When banks receive an interest rate cut, they may pass along the savings to consumers. Homeowners with ARMs could receive a payment reduction. (Source CAR)

''Making Real Estate Simple''

Barbara Wibe, e-PRO, REALTOR
Barbarainc@gmail.com
*** 619-850-4174 ***

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

GREEN TIP OF THE WEEK: RECYCLE WITHOUT RESERVATIONS

GREEN TIP OF THE WEEK: RECYCLE WITHOUT RESERVATIONS
If you've ever wondered if paper clips, staples, envelopes with adhesive, metal latches, or even plastic windows are recyclable, the answer is yes!

More Households Make Room for Extended Family

American households are becoming more multi-generational, according to a new report released Tuesday by the U.S. Census.

The number of heads of households who share their homes with their parents, brothers and sisters, and other relatives grew 42 percent from 2000 to 2007

The census finds a 75 percent increase in parents under the age of 65 who are now living with their adult children. In all, 3.6 million American households have made room for older parents. 

By state, Alaska had the highest number of parents moving in with their adult children – an increase of 167 percent, according to the data. South Dakota had the lowest – up 7 percent.

Sharing a home represents an old-fashioned approach to economic challenge, experts point out. Donna Butts, executive director of Generations United, an advocacy organization. 

"It is evolving in some ways back to how families used to live. That is, they're living in multi-generational households, " Butts said.

Source: ABC News, Barbara Pinto (09/23/08)

HOPE for Homeowners Expands Rescues

HOPE for Homeowners, a federal program to allow the replacement of up to $300 billion in underwater U.S. mortgages with federally backed FHA financing, began accepting applications under a legislatively authorized expansion Wednesday.

To qualify, borrowers must be spending more than 31 percent of their income on mortgage payments. Loans made this year are excluded, except for those completed on Jan 1. Borrowers must have made six months of payments on their loans.

Lenders must agree to participate and erase 10 percent of the home’s current value before the government will guarantee the mortgage. A concern among lenders is that investors in mortgage securities must take an immediate loss and can't recoup their lost money if home prices turn upward again.

The program is a "helpful step forward" in stabilizing the housing market and will help keep many families in their homes but it is not a cure-all, said Steve Preston, secretary of the U.S. Department of Housing and Urban Development, which administers the program.

Troubled borrowers should contact their lenders.

Source: Reuters (10/01/2008)

ATTENTION: Have you filed for bancrupcy lately?

Court Mandates Credit File Cleanup 

A recent court decision requires the three major credit-reporting bureaus — Experian Group Ltd., Equifax Inc., and TransUnion LLC — to clean up the credit files of consumers who have filed for Chapter 7 bankruptcy.

These bureaus are still reporting old debts as active on consumers’ credit reports even though they were wiped clean in a bankruptcy filing.

The U.S. District Court for the Central District of California gave the bureaus until Oct. 1 to revamp their systems. 

Consumers who have gone through Chapter 7 bankruptcy should request copies of their credit reports at a website like AnnualCreditReport.com and make sure that the old debuts have been removed.

The court-mandated changes come at a time when more consumers are filing for bankruptcy amid rising loan defaults and tighter credit standards. U.S. consumer bankruptcy filings jumped 29.2 percent to 96,413 in August, according to the American Bankruptcy Institute.

Source: The Wall Street Journal, Jane J. Kim (09/30/2008)

NEED HELP?

FACING FORECLOSURE?

HERE ARE A FEW HELPFUL RESOURCES:

http://www.hud.gov/foreclosure/

http://www.hopenow.com/

http://www.credabilityu.org/

http://www.creditcounseling.org/

GREEN TIP OF THE WEEK: LOVE THAT LINOLEUM

GREEN TIP OF THE WEEK: LOVE THAT LINOLEUM
If it's time to change the break room floor, opt for linoleum instead of vinyl. Linoleum is made from all-natural resources, while vinyl is made from petroleum

The Credit You Deserve – Getting a loan is harder, but it’s not impossible

The Credit You Deserve – Getting a loan is harder, but it’s not impossible
In light of the current situation with the credit market, obtaining financing has become more difficult than in previous years. Because of this, some consumers incorrectly assume that it is impossible to qualify for a mortgage loan, auto loan, or other financing. However, consumers who have good credit should remain optimistic about their loan choices.

MAKING SENSE OF THE STORY FOR CONSUMERS

· Most lenders have reinstated high credit standards, many of which were almost completely eliminated during the days of lax credit lending. Nowadays, most lenders require that consumers prove their ability to comfortably repay a loan, most often determined by their FICO scores. Most lenders require a FICO score of at least 720 to qualify for a mortgage loan. Consumers can receive a free credit report by visiting www.annualcreditreport.com. This Web site, created by the three nationwide consumer credit reporting companies -- Equifax, Experian and TransUnion -- provides consumers with their credit report, excluding their FICO score. Consumers can request their FICO score, for a fee of $16, by visitingwww.myfico.com.

· Even though some consumers may qualify for a new loan, some experts recommend that consumers who do not have emergency funds or are concerned about job security not take on additional debt obligations. However, consumers seeking to refinance a loan at a more favorable rate or repayment option, or those who wish to purchase their first house may benefit from the current low interest rates. Today’s rates, although higher than in previous weeks, are still at or near historic lows. Some experts predict that interest rates will remain low until the economy recovers.

· Consumers wanting to refinance their current mortgage, or purchase a home under the new permanent conforming loan limit of $625,500 -- effective Jan. 1, 2009 -- may best be served by their small local bank or credit union. These financial institutions often are in the best position to offer consumers a favorable or competitive interest rate. Consumers in California may qualify for conforming loans up to $729,750 until Dec. 31, 2008, as a result of the Economic Stimulus Act of 2008.

· Consumers seeking to refinance a mortgage loan or purchase a home with a jumbo loan -- loans greater than the prevailing conforming loan limit -- often will pay a percentage point or more than they would with conforming loans, according to bankrate.com. It also can be more difficult for consumers to find lenders offering jumbo loans. While consumers can check with their local small banks or credit unions to see if they offer jumbo loans, it is often best to work with a local mortgage broker or large national brokers, such as eloan.com when applying for a jumbo loan.

(Source: C.A.R.)

Economic Bailout Update

Oct. 3, 2008 - - -Earlier today, the U.S. House of Representatives approved the Emergency Economic Stabilization Act by a 263 to 171 vote. The legislation was quickly signed into law by President Bush, capping what has been a very tumultuous two weeks for the credit and financial markets.

This was a difficult decision for our elected representatives to make, especially given the abbreviated time period for review and debate that the gravity of the situation warranted. While passage of the Act should enable the credit markets and the U.S. financial system to set the stage for their eventual recovery, this was only the first step in what will likely take weeks and even months to wend its way through the system before reaching Main Street.

But it was an important first step. The health of the nation’s housing market is critical to the financial well being of every household in the country, and is front and center here in California.

Here’s what the legislation does:

Helps American families keep their homes by requiring the Treasury Dept. and any federal agency that owns or controls troubled mortgages to modify those mortgages wherever possible; this may include reducing the principal or interest rate; and extends till the end of 2012 the exclusion from federal income tax of mortgage debt forgiveness.

Addresses the credit crisis by allowing financial institutions to immediately sell $250 billion in troubled assets to the U.S. Treasury Department under the newly created Troubled Assets Relief Program (TARP).  Another $100 billion would be made available upon the President’s request.  Should the President deem it necessary, and with Congressional review, the Treasury Dept. may utilize the remaining $350 billion;

Protects taxpayers by allowing the Treasury Dept. to take an ownership stake in participating companies. In addition, if after five years TARP has incurred a net loss, the President must propose legislation that would force participating companies to reimburse the government to make up the difference;

Sets up an insurance program, funded by the financial industry, to guarantee companies’ troubled assets, including mortgage-backed securities purchased prior to March 14 this year;

Curbs executive pay for companies utilizing TARP;

Sets up two oversight committees, a Financial Stability Board, and a congressional oversight panel, to which the Financial Stability Board would report;

Creates renewable energy tax breaks for individuals and businesses, including a deduction for the purchase of solar panels; as well as continuing other tax breaks that were set to expire; and extends relief from the Alternative Minimum Tax (AMT) by another year;

Allows the SEC to suspend the required mark-to-market accounting standards and orders a study to be done on the rule’s impact on financial institutions;

Shields bank deposits by temporarily raising the FDIC insurance cap to $250,000 from $100,000; and temporarily increases the federal insurance level for credit union savings to $250,000, both till the end of 2009.

Homebuyers Relief Excluded from Bailout Bill

Friday, October 3, 2008 - Today, President Bush signed the Emergency Economic Stabilization Act of 2008 after the House passed the financial bailout bill. Unfortunately, a provision that included language similar to H.R. 6694 which provides for the reform of privately-funded downpayment assistance (DPA) programs was not included in this legislation.

(Source: CAR & Neimiah Corp.)

Great Deal in Sky Ranch Community

We have a rare homeownership opportunity at our EaglePointe Community which is located above it all - at Sky Ranch!

EaglePointe Residence Four, Homesite 198, is now being offered at $800,000.  This floorplan consists of approximately 4,908 square feet, 5 bedrooms, 4.5 baths a master retreat, excercise room, game rooom, nook, library and courtyard - a simply elegant home.  The beautiful home includes upgraded granite kitchen counters and our fabulous GE Monogram Appliances.  This home will be move in ready in October and is located where you may take advantage of the city lights and mountain views that surround us at Sky Ranch.  Please call us at (619) 850-4174 to schedule a private tour or to obtain more detailed information.

Keep Tabs on Energy Bills This Fall

September 29, 2008

Keep Tabs on Energy Bills This Fall 

When the leaves start falling, you know that the heating bills are about to start rising. But keeping your home warm and cozy on chilly autumn nights doesn't have to break the bank.

The U.S. Department of Energy offers these simple tips and relatively inexpensive home improvements that will help ensure cold gusts stay out and your furnace doesn't have to work harder than it should.

1. Plug air leaks with caulking, sealing, or weather stripping. Save 10 percent ($190 per year) or more on energy bills. Focus on windows, doors, outlets or switch plates on exterior walls.

2. Properly maintain the heating system. Heating accounts for half the average family's energy bill (approximately $950 per year). Make sure the furnace or heat pump receives professional maintenance each year. The small cost (about $75-100 for most service calls) will pay back in better performance all year long.

3. Install a programmable thermostat. Programming the thermostat from 72ºF to 65ºF for eight hours a day while no one is home, or everyone is tucked in bed, will cut the heating bill up to 10 percent ($90 per year), paying for a basic unit in less than a year.

4. Seal and insulate heating ducts. A system can lose up to 60 percent of its warmed air before it reaches the register (wasting $570 in warmed air per year) if ducts are not properly insulated in unheated areas such as attics and crawlspaces.

5. Insulate, insulate, insulate. Adequate insulation in the attic, ceilings, exterior and basement walls, floors, and crawlspaces can save up to 30 percent on home energy bills ($630 per year). Focus on the attic. (Heat rises.) Most homes should have between R-30 and R-49 insulation in the attic. Learn more at www.eere.energy.gov/consumer. 

6. Close fireplace dampers when not in use. When in use, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window about an inch, close doors to the room, and lower thermostat setting to 50-55ºF.

7. Let the sun shine in. Open curtains on south facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows.

8. Stay out of hot water. Water heating accounts for 15 percent of household energy use. Reduce water heating costs by lowering the water heater’s thermostat setting. Each 10ºF reduction can save between 3-5 percent in energy costs. Also insulate the hot water heater and hot water pipes.

9. Install storm windows over single-pane windows or replace them with Energy Star qualified windows. Storm windows reduce heat loss by 25 to 50 percent, and storm windows with low-e coating that reflect heat back into the room during the winter months save even more energy. Look for the Energy Star label to maximize savings. Energy Star qualified windows reduce heating and cooling bills by an average of $345, but could be higher in cold and hot climates, compared with uncoated, single-pane windows. Can’t afford new windows just now? Tape clear plastic sheeting to the inside of window frames if drafts, water condensation, or frost are present.

10. Net big savings with a little label. When replacing appliances, light bulbs, electronics, or heating and cooling systems, cut energy bills by up to 30 percent ($600 per year) with Energy Star labeled products. Use compact fluorescent light bulbs (CFLs) in place of comparable incandescent bulbs. Find retailers at www.energystar.gov.

These and other improvements that impact the energy efficiency of a home can save home owners money in the short term and serve as a selling point to potential buyers later. Be sure to save receipts, documentation, and manufacturer’s information.

Not sure where to begin? Try the Department of Energy's online energy audit tool atwww.hes.lbl.gov. 

Source: U.S. Department of Energy

The Economic Bailout

I know you dint ask, but im sharing....forgive the spelling and slang.....


We are all worried about the state of our economy right now. 

With Housing prices plummeting, stocks dropping, banks closing, 

unemployment rising, 401k's dissappearing - we all should be!

Ya the economy is in the toilet, But on the upside it looks like our gov't is going to throw us taxpayers 

under the bus and end up saving the day.

 

Something had to give.

I think its totally necessary.

Buyers need to be able to buy and sellers need to be able to sell.

Folks need to be able to renegotiate their loans.

Loan officers need to be prosecuted.

Homeowners need to get real about what they can and can't afford.

And the economy needs to go back to a happy place.

Proposed $700 billion plan moves forward

Proposed $700 billion plan moves forward
A proposed rescue plan that was initially submitted by the U.S. Dept. of the Treasury last Friday and received numerous edits and additions throughout the week appears to have made significant progress today, with members of both parties announcing they have reached general agreement to move forward with a $700 billion federal rescue plan.

If the plan announced today is approved, it would allow the U.S. Dept. of the Treasury to purchase troubled residential and commercial mortgage-related assets, including mortgage-backed securities and loans – up to $700 billion, which would promote stability in the U.S. financial markets.

COMMENTARY:

.  Although the rescue plan is not yet finalized, lawmakers and the Treasury would appear to agree on provisions that would provide assistance to many homeowners facing foreclosure. Earlier this week, the National Association of REALTORS® announced the creation of a Presidential Advisory Group to address this critical issue. Five California REALTORS® (NAR) were appointed to the 20-person Presidential Advisory Group. Both C.A.R.’s and NAR’s Leadership Teams are in close contact with elected officials and other key leaders in Washington to ensure that interests of the real estate industry are represented.
^.  One of Congress’ primary goals as this proposal moves forward is to minimize the financial impact of this rescue on the U.S. taxpayers. The current proposal would allow the Treasury not only to sell the acquired mortgage assets at a later date, but also to acquire an equity stake in the companies that participate in the program. The stocks could be sold at a later date, which could enable Congress to recoup some – if not all – of the $700 billion.

(source: CAR)

How Much Is $700 Billion Anyway?

How Much Is $700 Billion Anyway? 

The proposed financial bailout package being considered by lawmakers will come at a cost of as much as $700 billion. 

To put it in perspective, using numbers from the U.S. Census, the $700 billion is equal to:

• About $2,300 per American
• About $6,000 per U.S. household
• About 85 percent of the New York State economy
• The combined economies of all U.S. states beginning with the letter "A": Alabama, Alaska, Arizona, and Arkansas; plus Oklahoma.

The tally for all the various rescue measures launched by U.S. authorities this year runs to about $1.8 trillion. The $1.8 trillion is equal to:

• About $6,000 per American
• About $15,500 per U.S. household

Source: Reuters News (09/21/2008)

GREEN TIP OF THE WEEK: RECYCLING NO-NOS

GREEN TIP OF THE WEEK: RECYCLING NO-NOS
Here are five things that, according to earth911.org, will contaminate or thwart paper mills' attempts to recycle paper and cardboard:

- Oil and water don't mix. That large pizza box with the oil imprint will become recycled paper with an oil stain.
- Did your napkin or paper towel blot up a water spill or nail polish remover? It could have been the latter, and, for this reason, napkins and paper towels are not recyclable.
- Plastic linings added to paper products; a perfect example is paper cups.
- Wet newspapers.
- Pressure-sensitive adhesives, such as sticky notes, postage stamps, and address labels.

Prices are rising faster than your income

Prices are rising faster than your income. Here are a few tips to help you control spending:Use coupons at the grocery store, but only on items you would buy anyway.

• Save on gas by planning your errands so you only need one trip.
• Buy in bulk and bring your lunch to work.
• Don't buy lottery tickets. The money is better spent on savings, paying down debt and food.
• Call your utilities providers and ensure you are paying their lowest rates. Get on their budget plans.

GREEN TIP OF THE WEEK: REMOVE LIGHT BULBS FROM THE VENDING MACHINES

GREEN TIP OF THE WEEK: REMOVE LIGHT BULBS FROM THE VENDING MACHINES
You can save approximately $100 annually simply by removing the light bulbs in your office vending machines.

Help Pass Senate Bill 1738—The PROTECT Our Children Act

Help Pass Senate Bill 1738—The PROTECT Our Children Act

Hundreds of thousands of children are victims of sexual abuse each year. Due to the sheer lack of resources, law enforcement is unable to follow up on the majority of leads they have.

The PROTECT Our Children Act will: 

• Authorize over $320 million over the next five years in desperately needed funding for law enforcement to investigate child exploitation.
• Mandate that child rescue be a top priority for law enforcement receiving federal funding.
• Allocate funds for high-tech computer software that can track down Internet predators.

Act Now!
Your U.S. senators will be voting on the bill soon, so it is crucial you contact them immediately.
Go to www.senate.gov to find contact information for the senators in your state. Search for your senator by name or state by clicking on the arrow from either dropdown menu. Contact information is provided here. To send an e-mail, click on "Web Form" below his or her name, and e-mail your letter to make a difference! 

Call Your Senators
If you choose to contact your senators by phone, be sure to tell them, "Vote yes on Senate Bill 1738—The PROTECT Our Children Act."

Write to Your Senators
If you choose to write a letter, fax, telegram or e-mail, you may use the following sample letter—and modify it how you see fit.

Dear Senator:

I know that you believe, like I do, that we must do everything possible to protect children from sexual predators. That is why I am asking for your help.

Last year alone, U.S. law enforcement identified over 300,000 criminals who were trafficking in movies and pictures of young children being raped and tortured. Experts say that one in every three of these criminals has local child victims. Child pornography trafficking over the Internet has given us a trail of evidence that leads straight to their doorsteps, but the vast majority of these children will never be rescued because investigators are overwhelmed, outnumbered and underfunded.

As your constituent, I urge you to do everything in your power to pass the PROTECT Our Children Act (S. 1738, Biden-Hatch). This bipartisan legislation passed the House 415-2, but it is now the victim of petty partisan politics.

Now that we know where these children are and how to protect them, there is no excuse for the Senate to fail to take action this session.

(Your name here)   

Instructions for How to Copy and Paste the Letter
To copy and paste the letter into your senator's web form at www.senate.gov, point your mouse arrow at the beginning of the text that you want to copy. Click your left mouse button and hold it down. While holding the left mouse button, drag your arrow to the end of the text that you want to copy. Release the button. The text should be highlighted. Place your mouse arrow over the highlighted text, click your right mouse button once and let go. A new menu should appear. Select Copy from the drop down menu. When you get to the message form field for your senator at www.senate.gov, point your arrow at the beginning of the message field that you want to copy your text to and right click with your mouse. Click Paste from this menu. Submit your form and help our children!

Source: http://www.oprah.com/article/oprahshow/20080911_tows_predators

GREEN TIP: DOWNLOAD MUSIC

Whenever you can, download your music, instead of purchasing a CD. If you want to recycle your CDs and DVDs, visit the Compact Disc Recycling Center of America at http://www.cdrecyclingcenter.com/ to find the nearest recycling center, or visit http://www.cdrecyclingforfree.com/.  The latter accepts your mailed CDs and DVDs; you pay the postage.

Housing slump means those who buy now could save on taxes

One silver lining in the current housing market is the ability of home buyers to not only purchase a more affordable home, but also ensure lower property tax payments. Under Proposition 13, a measure passed in 1978 that limits property tax increases, the sale price of a home is generally used to set the home’s base value and subsequent property tax assessment. Proposition 13 also ensures that annual assessments will not increase more than 2 percent each year.

Congress weighs reprieve for seller-funded gifts

SEE THE INMAN NEWS ARTICLE HERE...

http://www.inman.com/news/2008/09/10/congress-weighs-reprieve-seller-funded-gifts

Where Is Real Estate Selling The Fastest?

So Where Is Property Selling Fast?

Altos Research, which tracks real estate data all over the country, identified these ZIP codes in which homes for sale spent the fewest days on the market. 

In cases where communities of relatively fast-selling real estate were clustered, the best ZIP Code in the area was chosen.

Overall, expensive homes and big bargains are selling with general ease, says Ken Gold, director of the Center for Real Estate Education and Research at Ohio State University. Meanwhile, homes in middle-income neighborhoods are selling the slowest, he says. 

Here's the list of the Top 10 fastest-selling ZIPs: 

1. Sunnyvale, Calif. 94087: 66 days on market
2. Austin, Tex. 78749: 68 days on market
3. San Diego, Calif. 92131: 70 days on market
4. Plano, Tex. 75075: 75 days on market
5. Portland, Ore. 97202: 77 days on market
6. Houston, Tex. 77094: 77 days on market
7. Wakefield, Mass. 01880: 79 days on market
8. Seattle, Wash. 98117: 86 days on market
9. Littleton, Colo. 80130: 90 days on market
10. Atlanta, Ga. 30340: 91 days on market

Source: Business Week, Prashant Gopal (09/05/2008)

FACING FORECLOSURE? Here are your options...

    

 

FACING FORECLOSURE? Here are your options...

(This may be helpful to you, your family... or a friend)

We have shown homeowners how to not only stop foreclosure...
but how to save hundreds or even thousands of dollars by avoiding the mistakes that others have made.

Know your options so that you can make the right decisions!

Whether you have been facing financial difficulties for some time, or you are just in a recent slump because of job loss, injury or other set back, you must educate yourself. Facing foreclosure is an emotionally-charged event. Most owners in situations like yours have intense feelings of fear and anxiety. These confusing thoughts can lead you to emotional, instead of logical, actions and decisions. Making emotional decisions is NEVER a good idea when it comes to your home and your money.

Homeowners who focus solely on saving their home without considering their entire financial picture often end up in even deeper trouble because they fail to look at the short and long term affects of their emotionally charged decisions.

This is likely the first time you have ever faced foreclosure. Well, it’s not our first time and if you let us help you, then together we can help you make logical decisions that will not only stop your current foreclosure, but will also set you up for future financial success.

The Most Common Foreclosure Options
Following are the most common options for people facing foreclosure. Depending on your situation, all of these options may, or may not, be available to you. Everyone's individual situation is different. Call us and we can discuss your options.

1. Reinstate The Loan
2. Forbearance
3. Loan Modification/Renegotiation
4. Mortgage Refinancing
5. Short Sale with Lender Acceptance
6. Sale of the Property To an Investor
7. Deed-in-Lieu of Foreclosure
8. Bankruptcy Filing
9. Nothing

REINSTATE THE LOAN – The most obvious option is to pay the loan current. If foreclosure proceedings have already been filed then the amount needed to get the loan current will not only include back payments, but also late charges and possibly attorney fees. This is the quickest and the most efficient way of ending a foreclosure action.

FORBEARANCE – The lender stops or postpones legal action. Usually granted when you make satisfactory arrangements to bring the overdue mortgage payments current.

LOAN MODIFICATION /RENEGOTIATION – A loan modification seeks to avoid foreclosure by negotiating with the lender to modify the terms of the loan. Loan modifications may include adjusting the interest rate, extending the loan period, or adding the delinquent portion and fees back onto the principal of the loan to be repaid over time.

MORTGAGE REFINANCING – In most cases, once foreclosure has started, you have been through several months of late payments or no payments. These late payments have a devastating effect on your credit rating. In addition, the new mortgage company will easily find out about the current foreclosure action. This most often leads to a denial of the refinance loan application.

* If you are approved you can bet it will be at a VERY high interest rate with higher than normal closing costs etc. This option is normally only for those with excellent credit histories and who have only suffered a temporary setback. If you are seriously considering this option then call us. We have connections with the companies that are most likely to be able to help you. Remember that time is of the essence so don’t waste a lot of valuable time on this option. You could lose your home while waiting on loan approval.

SHORT SALE WITH LENDER APPROVAL - A Short Sale is when your lender will accept a price for your home that is less than what you owe on it. Most people will qualify for a short sale if there has been some kind of financial hardship such as: Job Loss or Loss of Income, Divorce, Medical Issues, Death in the Family, or even an Adjustment in Interest Rate (known as “Payment Shock“). Short Sales have many time sensitive deadlines and you want to give yourself the utmost advantage at this stage by contacting us as soon as possible. In Most cases, the foreclosure timeline starts the day you miss your first payment, or make a partial payment. From this point you only have 90-120 days to take major action to sell your home and prove to your lender that you are suffering a hardship. I will help you prepare a financial package to submit to your lender proving your financial hardship. Once an offer has been submitted, the acceptance of it relies on the lenders discretion. In most cases if a reasonable offer has been submitted, then it is in the lenders best interest to approve the short sale.

Always contact your Lender as soon as you think there might be a problem. You will need to check with your attorney and accountant to make sure that this is the right choice for you. Your Realtor cannot decide what choice you need to make.

SALE OF THE PROPERTY TO AN INVESTOR– If you have been unable to work with your lender, or find another suitable solution in a TIMELY MANNER, it is time to seriously consider selling to an investor. When time is of the essence and you want to avoid foreclosure you should consider selling your property to an investor who offers “a quick closing.” Typically, this will be for less than fair market value, but can be a benefit to you because it is a quick “as is” sale with no real estate commissions. By Law, a Realtor cannot represent an investor on a short sale purchase. “As is” means you would not have to spend any money doing repairs, or spend time putting the house in perfect condition. By selling your house “as is” to an investor, you get a quick sale - allowing you to instantly stop the foreclosure and salvage your credit.

DEED IN LIEU OF FORECLOSURE – is when you voluntary deed title to your property to the lender. You basically give the house back to the bank. The ordinary effect of the taking of a Deed in Lieu is to extinguish the lender's deed of trust and vest the lender with title subject to all other existing liens and encumbrances. In effect, the lender becomes the new owner. The lender is not required to accept the Deed in Lieu and can show his/her refusal by filing a Notice of Non Acceptance with the County Recorder.

BANKRUPTCY – Some homeowners act on their lawyer's advice and file bankruptcy thinking that all their problems are now solved. Bankruptcy does put a hold on everything, yes, but all it buys you is a little time. Sometimes the end result is the property going to auction anyway, and you now have a bankruptcy in addition to the foreclosure on your credit report. Everything depends on where you are at in the foreclosure timeline, and how willing your lender is to work with you.

NOTHING – You may find it odd that Nothing is listed as an option, however one of the most common options taken by homeowners is NOTHING. Don’t fall into the trap of thinking that everything will magically work itself out, because it will not.

You are likely confused by your options and fearful of making a bad decision, but by doing nothing you are making a decision. I would love to tell you that stopping a foreclosure is a simple process and that it requires no special skill or knowledge, but this simply is not the case.

I trust that the overview of foreclosure options will help you start down the path of informed decision making to protect yourself, your family, your home and your bank account! If you would like to discuss any of these options, call me, and I’ll gladly answer your questions.

Time Is Your Enemy!
If your house payments are more than a month or two behind, your lender has probably already started foreclosure proceedings. As time passes thousands of dollars in penalties and legal fees can be added to the balance you owe. And every single day extra interest is added!

 

 

''Making Real Estate Simple''

Barbara Wibe, REALTOR®
Barbarainc@gmail.com
***619-850-4174***

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

 

Not intended as a solicitation if your property is already listed for sale.