Tuesday, December 30, 2008
New Years Wishes
First and foremost I wish for good health
Love from family, friends and community
Wisdom
Prosperity
A possible road to prosperity could be the Economic Recovery Act of 2009 where every household in the United States would receive $100,000. The total amount would be approximately 12 trillion dollars. The amount assumes that there are approximately 306,000,000 people in the United States with each household having an average of 2.5 members. This is equal to approximately 122,400,000 households. Of coarse there would be strings attached like having to reduce certain credit card and mortgage debt.
The Fed’s say that they want instant recovery. What is more instantaneous than giving the people on Main Street the money to immediately spend or invest?
On the war front the United States invades the Cayman Islands, empties the bank vaults and brings all of the money back home that was “made off” with. A second wave is planned for Switzerland.
Mortgage rates remain steady at 4.5%
The housing supply is equal to the demand.
Foreclosures and loan modifications are a thing of the past
Ethics have a higher value than profits
Citizens buy locally and stimulate their local economies
Art, music and physical education is re- introduced to the state school system
The Boys and Girls club has a banner fund raising year
People give up their dependence on computers and television and start engaging with one another one on one
Americans give up dependence on foreign oil
America has clean air and water
Happy New Year!
Love from family, friends and community
Wisdom
Prosperity
A possible road to prosperity could be the Economic Recovery Act of 2009 where every household in the United States would receive $100,000. The total amount would be approximately 12 trillion dollars. The amount assumes that there are approximately 306,000,000 people in the United States with each household having an average of 2.5 members. This is equal to approximately 122,400,000 households. Of coarse there would be strings attached like having to reduce certain credit card and mortgage debt.
The Fed’s say that they want instant recovery. What is more instantaneous than giving the people on Main Street the money to immediately spend or invest?
On the war front the United States invades the Cayman Islands, empties the bank vaults and brings all of the money back home that was “made off” with. A second wave is planned for Switzerland.
Mortgage rates remain steady at 4.5%
The housing supply is equal to the demand.
Foreclosures and loan modifications are a thing of the past
Ethics have a higher value than profits
Citizens buy locally and stimulate their local economies
Art, music and physical education is re- introduced to the state school system
The Boys and Girls club has a banner fund raising year
People give up their dependence on computers and television and start engaging with one another one on one
Americans give up dependence on foreign oil
America has clean air and water
Happy New Year!
Santa's Gift: Streamlined FHA Refis
Dear Sue,
I would like to refinance my FHA loan. It is 6.75%. I have heard that interest rates are as low as 4.5%. My friend said that the lower rates are only given to people that are purchasing. Is this true?
Re-fi Rhonda
Dear Rhonda,
A lot of people think that the lower rates only apply to home- buyers. I checked with Ryan Rivera at Goldmine Financial. He assured me that the lower rates apply to purchases and refinances. In fact FHA has a new streamlined refinancing program that does not require appraisal, income or asset verifications. If you have an existing FHA loan and have not been late on any payments, you should qualify to refinance at today’s lower interest rates.
Ryan is hoping that conventional lenders come up with a similar program. I think that it makes sense to adjust the interest rate on an existing loan if the borrower is in good standing. Paying for an appraisal and submitting reams of paper work to qualify for a loan when one already has a proven track record seems redundant!
Give yourself a Very Merry Christmas present by contacting your FHA lender today and get going!
Dear Sue,
My wife and I would like to rent our house out and get in on the REO boom! I have seen deals that are just too great to pass by.
I heard that banks wouldn’t let you buy a house if you already have one. There must be a way around that rule. Any ideas?
Anxious Andy
Dear Andy,
If you have 25% equity in your current residence you can rent your house out and purchase another house with as little as 3 1/2% down FHA. If you provide a rental agreement, the rental income will assist in qualifying you.
Some lenders limit the number of financed investment properties. FHA will allow three plus your residence. I have heard of one lender allowing up to ten properties.
If you turn your residence into an investment property make certain that you do your tax planning well in advance. If you have lived in the property for at least two out of the last five years you can sell it and receive up to $500,000.00 in tax- free gain. If you choose to keep it as an investment property, you will be able to exchange it in the future tax deferred.
Good tax planning is a matter of good Home $$s and Sense!
I would like to refinance my FHA loan. It is 6.75%. I have heard that interest rates are as low as 4.5%. My friend said that the lower rates are only given to people that are purchasing. Is this true?
Re-fi Rhonda
Dear Rhonda,
A lot of people think that the lower rates only apply to home- buyers. I checked with Ryan Rivera at Goldmine Financial. He assured me that the lower rates apply to purchases and refinances. In fact FHA has a new streamlined refinancing program that does not require appraisal, income or asset verifications. If you have an existing FHA loan and have not been late on any payments, you should qualify to refinance at today’s lower interest rates.
Ryan is hoping that conventional lenders come up with a similar program. I think that it makes sense to adjust the interest rate on an existing loan if the borrower is in good standing. Paying for an appraisal and submitting reams of paper work to qualify for a loan when one already has a proven track record seems redundant!
Give yourself a Very Merry Christmas present by contacting your FHA lender today and get going!
Dear Sue,
My wife and I would like to rent our house out and get in on the REO boom! I have seen deals that are just too great to pass by.
I heard that banks wouldn’t let you buy a house if you already have one. There must be a way around that rule. Any ideas?
Anxious Andy
Dear Andy,
If you have 25% equity in your current residence you can rent your house out and purchase another house with as little as 3 1/2% down FHA. If you provide a rental agreement, the rental income will assist in qualifying you.
Some lenders limit the number of financed investment properties. FHA will allow three plus your residence. I have heard of one lender allowing up to ten properties.
If you turn your residence into an investment property make certain that you do your tax planning well in advance. If you have lived in the property for at least two out of the last five years you can sell it and receive up to $500,000.00 in tax- free gain. If you choose to keep it as an investment property, you will be able to exchange it in the future tax deferred.
Good tax planning is a matter of good Home $$s and Sense!
Thursday, December 18, 2008
Readers Ask More Real Estate Questions
Dear Sue,
Are interest rates for a 30 year fixed rate loan really below 6%?
Ready Rex
Dear Rex,
Yes! Interest rates are well below 6% In fact they are between 5-51/2%. If you plan on living in your home for 10 years or more, it will pay to buy the interest rate down to 4-41/2%.
We haven’t seen rates like these in years!
Dear Sue,
Has there ever been a time in history when a real estate agent said that it wasn’t a good time to buy?? I think buyers should wait until we have reached the bottom of the market!
Curious Cal
Dear Cal,
Absolutely! I would discourage any buyer today if his/her intention was to buy a property in order to flip it for a quick profit. Those days are over.
Well-heeled investors and homebuyers that look at their purchase as a long-term investment are the only ones who should be shopping right now.
It’s impossible to time the bottom of any market. Unfortunately, the only view of it is in the rear view mirror!
Dear Sue,
Do you think now is a good time for a first time buyer to buy a home? If so, why?
First time Mike
Dear Mike,
Now is a great time!
The interest rates are unbelievably low! The Fed’s are talking about lowering the rate further to 41/2%! (Not available for refinancing)
If you buy a foreclosure the Fed’s will give you $7500.00. It is an interest free loan. There’s currently talk about making the $7500.00 a gift.
It seems like the government is proposing or introducing enticing incentives on a daily basis!
Today’s current inventory of homes gives you plenty to choose from. If you are out-bid on one there are more opportunities right around the corner.
The tax write-off add to the returns on a real estate investment. The government is actually helping you with your purchase through the interest and other deductions.
Dear Sue,
I heard that lenders were giving homeowners the benefits of a short sale if they could get refinancing. In other words, an upside down homeowner doesn’t have to sell his home in a short sale. The lender will actually allow the homeowner to refinance through another lender at the new appraised value, which is less than what is owed.
Do you know anything about this?
Agent Jo
Dear Jo,
What you’re talking about is a “short refinance”. The nice thing about this solution is that the homeowner gets to keep their home. There is no foreclosure or short sale to another buyer. The lender has more control over how much principal is lost.
This solution is good for all parties. I would recommend that short sale negotiators make a “short refinance” their first option. It’s a matter of good Home $$s and Sense!
Are interest rates for a 30 year fixed rate loan really below 6%?
Ready Rex
Dear Rex,
Yes! Interest rates are well below 6% In fact they are between 5-51/2%. If you plan on living in your home for 10 years or more, it will pay to buy the interest rate down to 4-41/2%.
We haven’t seen rates like these in years!
Dear Sue,
Has there ever been a time in history when a real estate agent said that it wasn’t a good time to buy?? I think buyers should wait until we have reached the bottom of the market!
Curious Cal
Dear Cal,
Absolutely! I would discourage any buyer today if his/her intention was to buy a property in order to flip it for a quick profit. Those days are over.
Well-heeled investors and homebuyers that look at their purchase as a long-term investment are the only ones who should be shopping right now.
It’s impossible to time the bottom of any market. Unfortunately, the only view of it is in the rear view mirror!
Dear Sue,
Do you think now is a good time for a first time buyer to buy a home? If so, why?
First time Mike
Dear Mike,
Now is a great time!
The interest rates are unbelievably low! The Fed’s are talking about lowering the rate further to 41/2%! (Not available for refinancing)
If you buy a foreclosure the Fed’s will give you $7500.00. It is an interest free loan. There’s currently talk about making the $7500.00 a gift.
It seems like the government is proposing or introducing enticing incentives on a daily basis!
Today’s current inventory of homes gives you plenty to choose from. If you are out-bid on one there are more opportunities right around the corner.
The tax write-off add to the returns on a real estate investment. The government is actually helping you with your purchase through the interest and other deductions.
Dear Sue,
I heard that lenders were giving homeowners the benefits of a short sale if they could get refinancing. In other words, an upside down homeowner doesn’t have to sell his home in a short sale. The lender will actually allow the homeowner to refinance through another lender at the new appraised value, which is less than what is owed.
Do you know anything about this?
Agent Jo
Dear Jo,
What you’re talking about is a “short refinance”. The nice thing about this solution is that the homeowner gets to keep their home. There is no foreclosure or short sale to another buyer. The lender has more control over how much principal is lost.
This solution is good for all parties. I would recommend that short sale negotiators make a “short refinance” their first option. It’s a matter of good Home $$s and Sense!
Thursday, December 11, 2008
Readers Ask Real Estate Questions in December 2008
Dear Sue,
Is it true that interest rates for a 30 year fixed rate loan were below 6%?
Ready Rex
Dear Rex,
Yes! Interest rates are well below 6% In fact they are between 5-51/2%. If you plan on living in your home for 10 years or more, it will pay to buy the interest rate down to 4-41/2%.
We haven’t seen rates like these in years!
Dear Sue,
Has there ever been a time in history when a real estate agent said that it wasn’t a good time to buy?? I think buyers should wait until we have reached the bottom of the market!
Curious Cal
Dear Cal,
Absolutely! I would discourage any buyer today if his/her intention was to buy a property in order to flip it for a quick profit. Those days are over.
Well-heeled investors and homebuyers that look at their purchase as a long-term investment are the only ones who should be shopping right now.
It’s impossible to time the bottom of any market. Unfortunately, the only view of it is in the rear view mirror!
Dear Sue,
Do you think now is a good time for a first time buyer to buy a home? If so, why?
First time Mike
Dear Mike,
Now is a great time!
The interest rates are unbelievably low! The Fed’s are talking about lowering the rate further to 41/2%! (Not available for refinancing)
If you buy a foreclosure the Fed’s will give you $7500.00. It is an interest free loan. There’s currently talk about making the $7500.00 a gift.
It seems like the government is proposing or introducing enticing incentives on a daily basis!
Today’s current inventory of homes gives you plenty to choose from. If you are out-bid on one there are more opportunities right around the corner.
The tax write-off add to the returns on a real estate investment. The government is actually helping you with your purchase through the interest and other deductions.
Dear Sue,
I heard that lenders were giving homeowners the benefits of a short sale if they could get refinancing. In other words, an upside down homeowner doesn’t have to sell his home in a short sale. The lender will actually allow the homeowner to refinance through another lender at the new appraised value, which is less than what is owed.
Do you know anything about this?
Agent Jo
Dear Jo,
What you’re talking about is a “short refinance”. The nice thing about this solution is that the homeowner gets to keep their home. There is no foreclosure or short sale to another buyer. The lender has more control over how much principal is lost.
This solution is good for all parties. I would recommend that short sale negotiators make a “short refinance” their first option. It’s a matter of good Home $$s and Sense!
Is it true that interest rates for a 30 year fixed rate loan were below 6%?
Ready Rex
Dear Rex,
Yes! Interest rates are well below 6% In fact they are between 5-51/2%. If you plan on living in your home for 10 years or more, it will pay to buy the interest rate down to 4-41/2%.
We haven’t seen rates like these in years!
Dear Sue,
Has there ever been a time in history when a real estate agent said that it wasn’t a good time to buy?? I think buyers should wait until we have reached the bottom of the market!
Curious Cal
Dear Cal,
Absolutely! I would discourage any buyer today if his/her intention was to buy a property in order to flip it for a quick profit. Those days are over.
Well-heeled investors and homebuyers that look at their purchase as a long-term investment are the only ones who should be shopping right now.
It’s impossible to time the bottom of any market. Unfortunately, the only view of it is in the rear view mirror!
Dear Sue,
Do you think now is a good time for a first time buyer to buy a home? If so, why?
First time Mike
Dear Mike,
Now is a great time!
The interest rates are unbelievably low! The Fed’s are talking about lowering the rate further to 41/2%! (Not available for refinancing)
If you buy a foreclosure the Fed’s will give you $7500.00. It is an interest free loan. There’s currently talk about making the $7500.00 a gift.
It seems like the government is proposing or introducing enticing incentives on a daily basis!
Today’s current inventory of homes gives you plenty to choose from. If you are out-bid on one there are more opportunities right around the corner.
The tax write-off add to the returns on a real estate investment. The government is actually helping you with your purchase through the interest and other deductions.
Dear Sue,
I heard that lenders were giving homeowners the benefits of a short sale if they could get refinancing. In other words, an upside down homeowner doesn’t have to sell his home in a short sale. The lender will actually allow the homeowner to refinance through another lender at the new appraised value, which is less than what is owed.
Do you know anything about this?
Agent Jo
Dear Jo,
What you’re talking about is a “short refinance”. The nice thing about this solution is that the homeowner gets to keep their home. There is no foreclosure or short sale to another buyer. The lender has more control over how much principal is lost.
This solution is good for all parties. I would recommend that short sale negotiators make a “short refinance” their first option. It’s a matter of good Home $$s and Sense!
Wednesday, December 3, 2008
End of 2008 Market Conditions
Dear Sue
It is the end of the year and I wanted to give you a market update. I think it is really important because the character of the market has changed substantially in the last couple of months.
During the summer months, June, July and August, the Auburn market experienced modest increases in values. I had hoped that this signified the beginning of a turn around.
My recent analysis shows that the market took a downturn in early September. We went six whole days without a sale! Since than prices have been declining at a far greater rate than we have experienced in recent history,
After careful study I found that the decline in values was primarily due to the type of properties that were being sold. The most re cent sales data included far more bank-owned and short sale properties than sales of properties that were not distressed.
The overall values have decreased because bank-owned and short sale properties sell for 22.5% less at the high end of the market and 25% less at the lower end of the market.
Banks are obviously more interested in selling properties more quickly than netting maximum proceeds from the sale. I hope this helps, Sue.
Jared Michael, Appraiser
Thank you Jared.
Like you, our agents have been noticing the decrease in sales of non-distressed property. It is interesting that you plotted a full six days without a sale. I remember holding my breath until I was blue in the face.
Jared, based on what you have told me, and what I am seeing in my practice, it is clear that this market is historically without precedence. I am confident that in years to come those who did not take advantage of this market will wish they had. Those who embraced today’s opportunities will be richer for it.
Home sellers need to be aware of the intense competition and list their property at a price that will allow it to sell quickly. The longer a home sits on the market the less a seller will net.
Understanding today’s market conditions can be a matter of good Home $$s and Sense,
It is the end of the year and I wanted to give you a market update. I think it is really important because the character of the market has changed substantially in the last couple of months.
During the summer months, June, July and August, the Auburn market experienced modest increases in values. I had hoped that this signified the beginning of a turn around.
My recent analysis shows that the market took a downturn in early September. We went six whole days without a sale! Since than prices have been declining at a far greater rate than we have experienced in recent history,
After careful study I found that the decline in values was primarily due to the type of properties that were being sold. The most re cent sales data included far more bank-owned and short sale properties than sales of properties that were not distressed.
The overall values have decreased because bank-owned and short sale properties sell for 22.5% less at the high end of the market and 25% less at the lower end of the market.
Banks are obviously more interested in selling properties more quickly than netting maximum proceeds from the sale. I hope this helps, Sue.
Jared Michael, Appraiser
Thank you Jared.
Like you, our agents have been noticing the decrease in sales of non-distressed property. It is interesting that you plotted a full six days without a sale. I remember holding my breath until I was blue in the face.
Jared, based on what you have told me, and what I am seeing in my practice, it is clear that this market is historically without precedence. I am confident that in years to come those who did not take advantage of this market will wish they had. Those who embraced today’s opportunities will be richer for it.
Home sellers need to be aware of the intense competition and list their property at a price that will allow it to sell quickly. The longer a home sits on the market the less a seller will net.
Understanding today’s market conditions can be a matter of good Home $$s and Sense,
Monday, December 1, 2008
So Many Reasons to Be Thankful in 2008
Fun, laughter and lively conversation at the dinner table will be heard through out many households in spite of today’s challenging economic times. When it gets right down to it the things that really matter can’t be bought but they can be shared. The greatest thing we share is the love and support of our friends, family and community. When tough times bring people together it makes those shared experiences all the more poignant
Fall is one of the most beautiful seasons in the foothills. A walk beneath the scarlet and gold canopy doesn’t cost a penny. Views of the Snow capped Sierra Nevada mountains, the American river canyon, the rolling hills and valleys are life affirming.
The proximity and magnitude of these natural wonders provide unlimited recreational opportunities and has put Auburn on the map as the Endurance Capital of the world. Mountain biking and hiking, kayaking, skiing, boating, fishing, camping, horseback riding and don’t forget, gold panning.
Our community’s love and appreciation of the arts is without equal. Jimmy Robinson, a world-class jazz musician performs at our Auburn Arts center located right across the street from the Monkey Cat restaurant. You don’t have to go to San Francisco to experience great art. In my neighborhood down Bell Road I love to pass Jennifer Johnson’s yard animated by her amazing steel sculptures. I am thrilled every time I visit the Nicholson blown glass studio. I swear that my hair gets curly from the searing heat of their furnace.
Auburn loves to celebrate! We celebrate everything from vintage cars to Mandarin oranges. We still have wonderful small town parades. We even have a parade for dogs. Picture the HomeTown Realtors entry this year: A cavalcade including a 1951 Dodge flat bed truck and a 1953 Ford Sunliner convertible pulling a 1953 Flying Cloud Airstream trailer fully decorated for the Festival of Lights parade. A look at the Auburn Chamber of Commerce calendar of events says it all.
We live in a community that honors and preserves its history. Our beloved courthouse is the centerpiece of our town. It is currently being renovated. It’s not the first renovation and it certainly won’t be the last. Our community has lovingly maintained the courthouse building for over a hundred years. We are unique in that so much of our history is preserved in architecture. We don’t treat our buildings like museum pieces either, we actually live and work in them.
I am most thankful for Auburn’s spirit of generosity! The citizens of our great community are generous beyond measure. Auburn takes care of its hungry and cold no matter what the economy is like. We have the food closet, the coat and can tree drives and the Salvation Army. We have the thanksgiving community dinner where many families volunteer to serve. We raise money for people who are sick and without means. We donate huge dollars for medical research. We have countless fundraisers for education and other worthy causes. We have service organizations like Rotary, Soroptomist’s, Lions and Elks. We have Project Auburn and the Auburn Community Foundation. For all this, I am thankful.
Happy Thanksgiving!
Love Sue
Fall is one of the most beautiful seasons in the foothills. A walk beneath the scarlet and gold canopy doesn’t cost a penny. Views of the Snow capped Sierra Nevada mountains, the American river canyon, the rolling hills and valleys are life affirming.
The proximity and magnitude of these natural wonders provide unlimited recreational opportunities and has put Auburn on the map as the Endurance Capital of the world. Mountain biking and hiking, kayaking, skiing, boating, fishing, camping, horseback riding and don’t forget, gold panning.
Our community’s love and appreciation of the arts is without equal. Jimmy Robinson, a world-class jazz musician performs at our Auburn Arts center located right across the street from the Monkey Cat restaurant. You don’t have to go to San Francisco to experience great art. In my neighborhood down Bell Road I love to pass Jennifer Johnson’s yard animated by her amazing steel sculptures. I am thrilled every time I visit the Nicholson blown glass studio. I swear that my hair gets curly from the searing heat of their furnace.
Auburn loves to celebrate! We celebrate everything from vintage cars to Mandarin oranges. We still have wonderful small town parades. We even have a parade for dogs. Picture the HomeTown Realtors entry this year: A cavalcade including a 1951 Dodge flat bed truck and a 1953 Ford Sunliner convertible pulling a 1953 Flying Cloud Airstream trailer fully decorated for the Festival of Lights parade. A look at the Auburn Chamber of Commerce calendar of events says it all.
We live in a community that honors and preserves its history. Our beloved courthouse is the centerpiece of our town. It is currently being renovated. It’s not the first renovation and it certainly won’t be the last. Our community has lovingly maintained the courthouse building for over a hundred years. We are unique in that so much of our history is preserved in architecture. We don’t treat our buildings like museum pieces either, we actually live and work in them.
I am most thankful for Auburn’s spirit of generosity! The citizens of our great community are generous beyond measure. Auburn takes care of its hungry and cold no matter what the economy is like. We have the food closet, the coat and can tree drives and the Salvation Army. We have the thanksgiving community dinner where many families volunteer to serve. We raise money for people who are sick and without means. We donate huge dollars for medical research. We have countless fundraisers for education and other worthy causes. We have service organizations like Rotary, Soroptomist’s, Lions and Elks. We have Project Auburn and the Auburn Community Foundation. For all this, I am thankful.
Happy Thanksgiving!
Love Sue
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