Monday, February 23, 2009

GREEN TIP OF THE WEEK: READ, RESPOND, RECYCLE IN THE POST OFFICE

GREEN TIP OF THE WEEK: READ, RESPOND, RECYCLE IN THE POST OFFICE
The U.S. Postal Service is unveiling a Post Office Box Lobby Recycling program that places secure recycling bins in Post Office lobbies. All bins are locked with a key and the opening is slim-about the width of a news magazine. Customers are encouraged to remove and open their mail (read), take whatever action is necessary (respond), and simply place the rest of their mail into the bin (recycle).

FYI: The Postal Service is the only shipping company in the country to earn Cradle to Cradle™ certification for all Priority Mail and Express Mail packages and envelopes. Find more information atusps.com/green.

Sunday, February 15, 2009

Aid will turn renters into owners


$17 million for county a step forward but it 'won't solve the issue'

UNION-TRIBUNE STAFF WRITER

2:00 a.m. February 6, 2009

As many as 300 low-and middle-income households in San Diego County will be the beneficiaries of more than $17 million in federal aid designed to clean up neighborhoods hard hit by foreclosures and to provide affordable housing opportunities.

While hardly a cure-all given the magnitude of the region's foreclosure problem, the money is expected to turn hundreds of renters into home owners as well as deeply subsidize the rents of some of the county's lowest-income households.

“Obviously, there are lots of foreclosures, and the amount of money we can put forward won't solve the issue,” said Mike Dececchi, chief of the county's community development division. “But we're excited about getting any money we can to assist folks to become first-time buyers.”

The funds coming to the county were allocated by the federal Department of Housing and Urban Development from a nearly $4 billion pot set aside for “neighborhood stabilization,” which was contained within the Housing and Economic Recovery Act signed into law last summer.

In San Diego County, the largest share of the money – $9.4 million – went to the city of San Diego, followed by the county of San Diego, which received $5.1 million. Also a recipient was the city of Chula Vista, which was awarded $2.8 million.

The allocations were calculated, in part, on the basis of foreclosure and default rates and the volume of subprime lending.

The housing agencies all have had their spending plans approved by the federal government but have not formally launched their programs. They hope to do so by the spring, when they expect the money will be released. All the funds must be committed within 18 months.

The bulk of the money coming to the county will go toward helping first-time buyers purchase repossessed homes by providing them with deferred loans that will substantially lower their monthly payments.

While each of the jurisdictions has a slightly different program, the idea behind each is to provide qualified buyers with zero-interest deferred loans that would cover up to roughly 25 percent of the cost of a home. Buyers, whose incomes cannot exceed 120 percent of median income, or $86,500 for a family of four, would have to come up with a down payment of 3 percent.

All purchases must be foreclosure homes, and in some cases, rehab work may be required, the cost of which would be rolled into the purchase price.

The San Diego Housing Commission has estimated that its home buyer money could assist 92 households, assuming the purchased homes cost no more than $230,000, including $30,000 in rehab work. However, if no renovation were needed, as many as 130 families could become buyers, as long as the purchase price did not exceed $200,000.

The plans for using the federal foreclosure money are not that much different from local governments' existing first-time buyer programs, although those typically restrict qualifying buyers to households earning no more than 80 percent of median income.

San Diego's program last year assisted 100 first-time buyers, and the funds are nearly gone, said Housing Commission CEO Richard Gentry.

Each of the three housing agencies getting funds will seek out foreclosure properties in designated census tracts where there have been high volumes of distressed properties.

Throughout the county, there are roughly 1,675 active listings of bank-owned properties, according to Brian Yui of HouseRebate.com. One of the potential hurdles the housing agencies face is a federal requirement that the bank-owned homes be sold at a discount of at least 5 percent below the appraised value. But in the aggregate, the overall discount for all homes sold must be 15 percent.

“A number of groups are advocating that the rules be changed to 5 percent,” Gentry said. “The 15 percent makes the program more difficult to operate.”

Gabe del Rio, vice president of lending and homeownership for the nonprofit Community HousingWorks, said he believes that mortgage giant Fannie Mae will offer some of its repossessed homes at a 15 percent discount.

“We're absolutely thrilled we'll have additional resources for first-time buyers,” del Rio said. “We'll work closely with all three jurisdictions and the Realtor community to make sure the program is a success.”

While 75 percent of the federal funds will be used for first-time buyer purchases, the remaining money will assist renter households who earn no more than 50 percent of the median income, or $39,500 for a four-person household.

The local housing agencies will most likely work with affordable housing developers to acquire foreclosures that can be rented out at subsidized rates. It is estimated that as many as 55 to 60 renters could be assisted.

Early on, some local housing advocates had hoped the federal money, in combination with private funds, could be used to help create a land bank that would buy properties at a discount and sell them to low-and moderate-income households.

The strategy embraced by the local jurisdictions is not one that will do much for stabilizing foreclosure-ridden neighborhoods, believes Barry Schultz, head of the San Diego Capital Collaborative, a nonprofit investment corporation that raises funds for investment in development targeting middle-income households.

“They're all taking the safe route, using existing programs in place primarily because the feds are making them get the money out quickly,” Schultz said. “Everyone is in a rush to throw a lot of money at programs without thinking how best to effectively solve the problem.”

U.S. housing market bottom within sight



Although some housing markets across the nation have experienced price declines of 50 percent or more from their peaks, namely in high-cost states such as Florida and California, it appears a bottom is in sight.  According to a report from Moody’s Economy.com, the bottom, in terms of home prices, will likely take place in the fourth quarter.

MAKING SENSE OF THE STORY FOR CONSUMERS

 

·      The report states that nearly 62 percent of the nation’s 381 metropolitan areas will have experienced double-digit-percent declines in home prices, peak-to-trough, before bottoming out.

 

·      Housing inventories are falling, sales are rising, and home prices are becoming better aligned with incomes, which will help lead to a housing correction. Although lawmakers are working on plans to help stabilize the market, the report forecasts that even with further government intervention, the recession will keep the housing market from fully recovering until the end of the year.

 

·      According to the report, home sales will have declined by 40 percent and housing starts by 70 percent nationwide from peak to trough.  However, California’s home sales tell a different story.  C.A.R. economists project sales for 2009 to increase 12.5 percent to 445,000 units, compared with 395,600 units (projected) in 2008. 

 

DENVER TOPS LIST OF FAVORITE CITIES, SAN DIEGO SECOND


A new national survey by the Pew Research Center's Social & Demographic Trends Project finds that nearly half (46%) of the public would rather live in a different type of community from the one they're living in now – a sentiment most prevalent among city dwellers. When asked about specific metropolitan areas where they would like to live, respondents rank Denver, San Diego and Seattle at the top of a list of 30 large cities, and Detroit, Cleveland and Cincinnati at the bottom.

Friday, February 13, 2009

GREEN TIP OF THE WEEK: PAXIL IN THE PIPES

GREEN TIP OF THE WEEK: PAXIL IN THE PIPES
For years, doctors advised patients to flush unused or outdated medications down the toilet. Today, scientists are urging us stop this practice because waste water treatment plants cannot remove these substances, and everything from hormones to codeine have been detected in streams and lakes. The health risks to animals and humans remain unclear. For guidelines for safe disposal of medications, visit http://nodrugsdownthedrain.com/disposal.html

PROPERTY TAX REDUCTION SCAM ALERT

PROPERTY TAX REDUCTION SCAM ALERT
The Los Angeles County Assessor's office is alerting homeowners that various private companies are sending mailings to property owners offering their services to pursue a reduction in the owner's property taxes. The companies may charge hundreds of dollars to file for a reduction in value on behalf of the property owner. Some companies also are imposing late fees if the application is received after an arbitrary deadline. Solicitations from private companies offering to pursue a reduction in property taxes must clearly indicate that they are NOT a government agency and that their services are NOT approved or endorsed by any government agency. Failure to provide such notice is a violation of California law.

In 1978, California voters passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a "decline-in-value." A decline-in-value occurs when the current market value of your property is less than the assessed value as of January 1. The assessed value is the value shown on a property owner's most recent property tax bill. Typically, an application from the property owner is required to initiate a review of the property's value by the Assessor.

INFO ON MORTGAGE WORKOUT PROGRAMS AVAILABLE

INFO ON MORTGAGE WORKOUT PROGRAMS AVAILABLE
C.A.R. has created consumer information sheets detailing the various mortgage modification programs available through the larger lenders and government entities. C.A.R. also has created an easy-to-use reference chart about available programs.

The consumer sheets contain information such as eligibility requirements, who to contact to apply, costs associated with the program, and other vital data. The sheets also are formatted in Microsoft® Word, enabling REALTORS® to print and e-mail this valuable information to their clients.

REALTORS® who wish to assist their clients in seeking loan modifications should ensure they are in compliance with California law. For further information, please visit the California DRE Web site at http://www.dre.ca.gov/mlb_adv_fees.html. REALTORS® also may direct clients to work with a U.S. Dept. of Housing and Urban Development (HUD)-approved counselor. For a list of HUD-approved counselors in California, visit the HUD Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA.

Source: CAR

Housing market may have turned a pivotal corner

With home prices in many areas declining to the point where owning a home is a more affordable option than renting, especially in the West, many potential home buyers appear to be getting off the fence and starting to purchase.  Add affordable prices to record-low interest rates and the demand for housing has reached a pivotal turning point.



Wednesday, February 11, 2009

New Guidelines Issued from Fannie Mae

Hi Everyone,
 
Attached are the new guidelines issued from Fannie Mae - The new policy allows for a borrower to have up to 10 financed properties,  however here are a couple of key points to pay attention to:
 
Loan-to-Value:
Purchases on 2nd homes and investment properties are limited to 75% LTV
Limited Cash-Out Refinances on 2nd homes and investment properties are limited to 70% LTV
2-4 Units are limited to 70% LTV
 
Credit:
Low FICO score cannot drop below 720
Bankruptcy and/or foreclosure must have 7 years seasoning
No mortgage lates over the last 12 months
 
Income:
Regardless of DU findings rental income must be verified with 2 years tax returns
 
Cash Reserves:
6 months reserves (PITI) on subject and all financed properties. In addition for investor purchases for borrowers who own 1-4 financed properties cash reserves have been increased from 2 to 6 months.

BUY A HOME FOR ONLY 3% DOWN!

Fannie Mae’s New HomePath REO Loan

Fannie Mae, the agency sponsored by the U.S. government to help make housing more affordable to all Americans, now offers HomePath, a special new home loan to finance the sale of its current real estate owned (REO) properties across the country.

Prospect Mortgage is among a select group of mortgage lenders nationwide who can offer the HomePath loan to get you into one of these homes!

Here are the key benefits of a HomePath Mortgage Loan:
  • Only 3% down required on a primary residence property
  • No mortgage insurance required
  • No property appraisal required
  • Only 10% down on 1-2 unit investment properties
  • Get up to 6% in seller concessions on primary residence properties

In addition to being one of the few lenders approved to offer the HomePath loan, we’re experts with REO transactions. I have been specially trained to handle the specific requirements of an REO transaction. I’ll keep the process smooth and stress-free.

Search for Fannie Mae REO properties eligible for HomePath financing at:
http://reosearch.fanniemae.com/reosearch/

Contact me today to learn more about the HomePath program!

INVESTORS.....

As of March 1st Fannie Mae will allow  investors to have 10 financed properties.  Must put 25% down, 720 FICO and 6 months reserves for each property. 

The details are just coming in.  I will know more next week!

Monday, February 2, 2009

DEC. HOME SALES INCREASED 84.9 PERCENT; MEDIAN PRICE FELL 41.5 PERCENT

DEC. HOME SALES INCREASED 84.9 PERCENT; MEDIAN PRICE FELL 41.5 PERCENT 
Home sales increased 84.9 percent in December in California compared with the same period a year ago, while the median price of an existing home fell 41.5 percent, C.A.R. reported yesterday. "Sales continue to be strong, exceeding 500,000 units for the fourth consecutive month, and year-to-date sales are nearly 27 percent above last year," said C.A.R. President James Liptak. "California home buyers benefited during the last half of 2008 from the high-cost loan limit of $729,750, which fell to $625,500 as of Jan. 1. The restoration of the high cost loan limit to the previous level would not only help a housing market still struggling to turn around, but also make financing more affordable for home buyers."

Closed escrow sales of existing, single-family detached homes in California totaled 544,580 in December at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 84.9 percent from the revised 294,520 sales pace recorded in December 2007. Sales in December 2008 increased 5.9 percent compared with the previous month.

The median price of an existing, single-family detached home in California during December 2008 was $281,100, a 41.5 percent decrease from the revised $480,820 median for December 2007, C.A.R. reported. The December 2008 median price fell 2 percent compared with November's revised $286,850 median price.