When Buying a Home in North San Diego County it is Important to look at New Homes First

Over the years i have observed the attraction new homes have over existing and foreclosed homes.  In our brokerage I always recommend buyers are taken to new home developements that fit their criteria before they buy an existing home.  That allows them to see the latest innovations, floor plans, neighborhoods, and features they can get at a given price.  Buyers then have a much better idea of their options and can make a better, more informed choice of their new home. Here is an article in the San Diego Union that amplifies on that theme:

KENNETH HARNEY

Nation’s Housing

BUILDERS SEEK EDGE BY WARNING OF COSTS WITH FORECLOSURES

Homebuilders are switching tactics and confronting headon one of their biggest nemeses: foreclosed houses that not only lure buyers away with deeply discounted prices but simultaneously depress the appraisal values of newly built homes.

At a packed session at the International Builders’ Show expo this month in Orlando, Fla., consultants and builders said that with gluts of foreclosures in major markets around the country — and more forecast to arrive in the next two years — the time has come to stop being passive and to begin aggressively educating buyers about the often-hidden costs of buying foreclosures.

In Phoenix, one large builder, Fulton Homes, has put together the equivalent of an online truth squad — an interactive “foreclosure cost calculator” that allows shoppers to estimate the expenses they’re likely to encounter if they opt for a foreclosure (fultonhomes.com/foreclosure- calculator). The calculator uses what the company’s vice president, Dennis Webb, said are commercially available expense averages for acquiring, repairing and outfitting foreclosed houses of varying sizes, conditions and price levels in the area.

Say you’re shopping for a home to live in, rather than to rent out as an investment. You locate a number of foreclosures at low listing prices. You’re also aware of newly constructed homes that appear to carry higher prices for similar lot sizes and square footage.

The cost calculator prompts you to input the size, price and condition of the foreclosures. Say one of them is listed for $110,000 with 2,125 square feet of living space. Based on a drive-by, you estimate the overall condition to be fair — not terrible, but not great either. For that foreclosure, according to Fulton’s data, typical post-acquisition costs — repairs, new equipment, appliances and other improvements to make it adequate for you and your family — would add $32,288 to the price you pay.

Likely expenses include an estimated $1,063 in appliances, $2,125 in electrical upgrades, $3,613 in windows, $5,525 for flooring and carpeting, $5,695 for cabinets, $1,913 in plumbing, $1,488 for drywall, $1,399 for the roof, $683 for interior cleaning, and a long list of others. The calculator also identifies possible legal fees.

Next to the calculator — here comes the big sell — Fulton offers you a look at some of its own newly built homes that are in the same general price range. They come with none of these add-on costs and instead have extended warranties on construction, appliances and equipment plus independent third-party inspections. Webb said in an interview that the calculator has been “amazingly effective” in opening the eyes of home shoppers to the “dark side” of foreclosures.

Jay McKenzie, vice president of BDX, an online information site for the industry, said hisfirmrecently hadconducted a survey of builders in different parts of the country and found that head-to-head comparison efforts — newly built versus foreclosures — are a strong new marketing trend. Among the key arguments builders are using: • New homes are far more energy-efficient and “green,” with highly rated windows, roofs, insulation and appliances. They also come with the wiring and spaces needed for most consumers’ high-tech information and entertainment preferences. Most foreclosures offer little or none of this.

• Newly constructed homes allow the buyer to “choose what you want” in floor plans, equipment, landscaping and amenities. Foreclosures don’t.

• Closing-cost and upgrade incentives. Most builders are willing to help with settlement costs, unlike banks unloading foreclosures.

• Financing is almost always easier, since a large percentage of builders either have their own mortgage subsidiaries or are affiliated with a lender.

The builders have a point: The costs of their houses are all built into the price. You often have no idea what your final expenses will be with a foreclosure because you buy them “as is,” typically with no professional inspection.

On the other hand, don’t ignore the potential upsides of foreclosures — the pricing and locational advantages can be huge. Do your own comparisons, and you’re more likely to end up making an intelligent choice.

Kenneth Harney is a columnist for The Washington Post Writers Group.

Send email to kenharney@earthlink.net.

San Diego Real Estate and Property Management Opportunities are Enhanced by Our Tax Code

Because San Diego North County homes and neighborhoods are in high demant from people all around the world we have the unique opportunity to enjoy price appreciation in addition to the normal tax advantages of owning real estate.  When properly leveraged, your return on your investment can be enormous.  The key is knowing how to evaluate and manage your investment.  You need the expert advice of your accountant and your real estate professionals to help maximize that investment.  That investment must be handled as a business for tas purposes and for objective wealth planning for the future.  This article in the San Diego Union "rent sense" column every Sunday is very appropriate:

Tax Codes Favor Rental Owners

By Neil Fjellestad & Chris DeMarco

Fjellestad, Barrett & Short

Rental property owners enjoy key benefits under federal and state tax codes. It’s the stimulus provided by government to encourage investment in real estate ownership and rental operations.

Fully utilizing the tax codes to enhance your return is an important piece of your rental ownership. Fully understanding your accountability as a small rental business owner subject to IRS regulations is also important. During the housing bubble, many foreclosures were the result of rental owners who either didn’t understand or ignored the risks involved. Here are a few tax tips to consider: • All rental income and expenses for 2011 should be documented and organized for review.

• If you’re a self-managing landlord, have a separate bank account for all business income/expenses.

• If you use professional property management, you’ll receive the above information monthly and at year’s end in a format that’s easy to review with your tax professional.

• Get advice on business allocation of costs associated with your home Internet service, computer, subscriptions to business publications, and travel expenses to visit property and or manager(s).

Professional tax planning involves determination of capital items vs.

operating expenses, depreciation schedules, treatment of property assessments, mid-year acquisitions/ dispositions, special investment credits and more.

A rental owner’s dissatisfaction with their investment usually stems from not thinking like a small business owner, not taking full advantage of the financial benefits of real estate ownership and not surrounding themselves with professional resources that will attend to the details that control risk.

 

North San Diego Homes Sales Activity Increases Year Over Year

Activity has increased and in some areas home prices are improving due to the multiple offers now occuring in January and February.  Inventory of homes in north San Diego is down.  Demand is up.  Prices of homes follow.

Open houses are active again showing a huge increase of traffice over last year.  Pent up demand for a change in living conditions combined with more stable prices and low interest rates are driving interest in real estate again. 

Most real estate experts agree purchasing now is better than looking back and wishing they had purchased after rates and prices rise. They agree also it is best to establish a plan to make that move by consulting with an expert lender to quailify for the loan they will need now, or in the future.  They can help you know how to maximize and improve your credit worthiness with your home purchase in mind.  You may be surprised to find out your can qualify now or sooner than you otherwize would think.  Nothing ventured, nothing gained. 

S.D. HOME SALES RISE IN JANUARY; PRICES STAY FLAT

LILY LEUNG • U-T

San Diego County home prices remained flat in January but total sales rose, the latest DataQuick figures released Wednesday show.

The median price of all homes sold in the county last month was $305,000, 0.3 percent higher than a year ago. When comparing January to December, values fell 3.2 percent.

Total sales — which include singlefamily resales, condos and new homes — rose in January to 2,358, or 5 percent higher from January 2011. Sales fell almost 29 percent month-over-month, a natural decrease from December to January because of the holiday season.  

“January numbers have never been very good at providing an indication of what upcoming activity will be like,” said DataQuick president John Walsh. “For that we need to wait until March. What we can determine is that the mortgage market remains dysfunctional. It will be interesting to see how a potential surge of refinance activity plays into the purchase market once the administration’s new guidelines are implemented.”

How did each housing category fare in January?

Here’s a breakdown for San Diego County: Resale homes: This typically makes up the majority of total sales every month. The median price in January was $339,000, 3.1 percent lower than a year ago and up 0.6 percent from December. Sales rose the most in this category. More than 1,500 units were purchased last month, up 12.1 percent from a year ago.

Resale condos: The median price for a condo in the county stayed at $205,000 for the third month in a row. The county recorded 686 sales last month, down 8 percent from January 2011. This was the only home type that saw a yearover- year drop in sales in January.

New homes: Conditions are better than a year ago but are still far below prerecession levels. There were 143 sales in the county, up 3.6 percent from January 2011. Prices during the same time frame rose 5.8 percent to $422,000.
 

A Closer Look At What Is Coming For The Benefit Of Homeowners. 

This From an Article in the San Diego Union:

KENNETH HARNEY Nation’s Housing

EVEN WITHOUT CONGRESS, SOME REFI HELP MAY BE COMING

Though it was pronounced dead before arrival by opponents on Capitol Hill, President Barack Obama’s new mortgage refinancing package contained far more than legislative proposals.

In fact, significant portions of it that have received little media coverage require no prior approval from a hyperpartisan Congress and could begin affecting consumers within weeks. Here’s a quick rundown on key segments of the housing proposals with a handicapping of their likely impact this year: Going nowhere: If you’ve got an underwater mortgage that isn’t owned or guaranteed by Fannie Mae or Freddie Mac, the president’s marquee proposal to help you refinance into a 4 percent mortgage is not likely to be of assistance. The plan’s core concept of funding your rate cut by levying a fee on the largest banks — “based on their size and the riskiness of their activities” — would be a nonstarter politically even if this weren’t an election year. R.I.P.

Moving fast: Refinancings can be speeded up administratively by key executive branch agencies, and the new program directs them to do so within the next few weeks wherever possible. For example, the Federal Housing Administration will be removing a major barrier for lenders to “streamline” refinancings for current, non-delinquent borrowers who want to take advantage of today’s low rates. The FHA no longer will count streamlined refis — where some standard underwriting requirements are waived — against lenders’ performance ratings on delinquencies. The fear of getting a poor rating is a powerful deterrent for many lenders against doing streamlined refis, because they can lose their eligibility to do loans for the FHA altogether. Removing ratings as a barrier should help significant numbers of FHA borrowers get into a better deal.

At the same time, the White House has ordered all the other federal agencies with homebuyer programs to clear the decks for streamlined refis of their existing customers. For example, the Agriculture Department, which runs the third-largest and fastest-growing program — last fiscal year, its loan guarantees funded more than 130,000 home purchases in communities on the fringes of major metropolitan areas — is expected to waive requirements for new credit reports, appraisals and other documentation for streamlined refinancings. The main requirement for hundreds of thousands of existing USDA borrowers who want to switch to a lower loan rate: Just be on time with your current payments.

Coming your way: amortgage servicing “bill of rights.” Though some reforms already are in place, the White House is requiring all federal housing agencies to enforce minimum standards on mortgage servicers, including mandating immediate interventions with offers of forbearance or loan modification at the earliest hints that an owner is facing financial strains.

For borrowers, the plan also requires continuous points of contact with a customer service employee of the servicer plus access upon request to all relevant documents the servicer maintains on the borrower’s account. For homeowners who are turned down for a modification or other assistance, the plan requires a guaranteed right of appeal in “a formal review process” to give the borrowers a second chance.

Long shot but could happen:

The federal regulatory agency that oversees Fannie Mae and Freddie Mac in conservatorship disagrees, but the White House believes that both companies could eliminate all closing costs for large numbers of underwater borrowers who want to refinance into shorter-term loans and rebuild their equity. The idea is aimed at potentially hundreds of thousands of owners whose loans already are owned or backed by Fannie and Freddie.

To encourage them to use their refinancing savings to pay downtheir principal debt faster, the program would eliminate all closing fees for borrowers who opted for loan terms of 20 years or less. The refinancers generally would end up paying the same amount per month on their loans, but the compressed amortization schedule would reduce the principal much faster than a standard 30-year payoff schedule.

Don’t count this one out. It’s a potential winner for borrowers if the legal issues can be resolved.

Kenneth Harney is a columnist for The Washington Post Writers Group.

Send email to kenharney@earthlink.net.

Questions And Answers About Foreclosures For Owners and Tenants In San Diego

CAUTION

In the fog of foreclosure, beware of solicitors that offer erroneous information in bid to take your money

LILY LEUNG • U-T
Fear and uncertainty filled Daniella Baca after she learned that her landlord was facing foreclosure. Those feelings peaked the day the home was sold, when the single mother of two received what seemed like an official letter offering help and then a warning in capital letters: “If you do nothing, you are risking an eviction within 15 to 30 days.”

“It was scary, especially when I saw the (foreclosure) summons even though my name wasn’t on it,” said Baca, 42.

Baca is among the many renters in San Diego County and other areas hit hard by foreclosures who have been targeted with similar panic-inducing fliers. Former homeowners of foreclosures get them, too. What’s more concerning than the doom-andgloom messages is the erroneous information in the ads, said Steven Kellman, who deals with such issues often at San Diego’s Tenants Legal Center, which he founded. (Kellman also is a mem­ber of the U-T San Diego’s Rental Roundtable.) “They’re filled with misinterpretation,” said Kellman, who said the fliers started popping up about two years ago.

So what are the rights of renters and homeowners living in properties that have been freshly foreclosed upon? Here are fivemyths busted:

Myth: The eviction process, also known as unlawful detainer, begins immediately after the foreclosure property has been sold or will be sold at auction.

Fact: Unlawful detainer doesn’t start until your move-out notice expires, Kellman said. If you’re a renter, you’re entitled to at least 90 days in the home or the remainder of your lease, as long as your lease is deemed bona fide as defined by federal law. If you’re the former owner of the home, then you’re entitled to a three-day notice after the foreclosure sale.

Myth: If you pay a company for its post-foreclosure services, they can guarantee you can stay in the home for up to five to nine months.

Fact: There’s nothing in the California lawthat says that. Again, if you’re a renter, you get a minimum of 90 days, or the remaining time on your lease. It’s three days if you’re the former homeowner.

Myth: You don’t have to pay any rent after a home has been foreclosed upon.

Fact: Neither state nor federal law specifically allows you to stay in a foreclosure property rent-free. But there are banks that are willing to strike deals with homeowners and renters. If you stay in the home for the duration of what’s left on your lease, then the bank steps in as the landlord, and you may have to pay the bank the lease rent. The bank may offer you “cash for keys” to pay you tomove, but “one must tread carefully,” Kellman said. “These are filled with conditions.”

Myth: Homeowners and renters who get post-foreclosure solicitations should act on them immediately and start legal processes.

Fact: You should wait until the new owner of the foreclosure contacts you or serves you with papers, Kellman said.

Myth: Any company that produces post-foreclosure paperwork that looks official is licensed to practice law.

Fact: A lot of these companies that say they can negotiate a deal for you with the banks do not have law licenses. How can you find out for sure? The State Bar ofCalifornia has an attorney look-up site: 1.usa.gov/californiabar. Does the company claim to be a real estate office? You can look that up as well, at the Department of Real Estate site: 1.usa. gov/californiadre.

Please note: Giving legal advice, preparing legal papers or responding to legal papers should only be done by an attorney who is licensed to practice lawand is experienced on matters relating to foreclosures.

Frank Washburn, whose Chula Vista home was foreclosed upon, never saw the red flags. Headmits to being duped by one of these postforeclosure solicitors. His failure to do his homework, he said, cost him $2,500.

Washburn, 45, remembers amanapproachinghimat his former home to guarantee him more time at his property until he found another place. AfterWashburnmade an initial payment, he was taken to an office to meet a legal assistant.

In total, Washburn paid $2,500 to the initial company but was never given any services. His home was foreclosed upon in August. “They play off your hope,” said Washburn, who did not report the incident to any agencies. “You’re wishing for the best.”

Eventually, Washburn found help with theTenants Legal Center, a company that helped him strike a deal with the bank. The options were stay in the home another 30 days, which gave Washburn no money, or move out within a week and get $1,000. Washburn, who chose the latter, paid the legal center $1,500 for its services.

lily.leung@utsandiego.com

(619) 293-1719 Twitter:@LilyShumLeung

San Diego Home Borrowers Receive 1.5 Billion Settlement From Banks!  Here are Questions and Answers.

ANSWERS FOR BORROWERS ON SETTLEMENT WITH BANKS

LILY LEUNG • U-T

Borrowers who are struggling to pay their mortgages, are facing imminent foreclosure, or have been foreclosed upon may have a shot at benefits through an $18 billion mortgage settlement California will receive through a multistate deal.

The California Attorney General’s Office estimates 466,000 homeowners in the state may qualify for several types of relief, including principal reductions, loan refinances, restitution for foreclosure abuses and the chance at short sales.

The deal, reached after 16 months of contentious negotiations, is subject to approval by a federal judge.

The answers below are based on information from nationalmortgagesettlement. com and the California Attorney General’s Office.

Q:How do I know if I qualify for benefits?

A:You must have a home loan that’s owned or serviced by one of the five banks in the settlement. Contact your mortgage servicer for more information. Typically, servicer contact information is on your mortgage statement.

Q:My loan is owned by Fannie Mae and Freddie Mac. Am I eligible?

A:Loans held by Fannie Mae and Freddie Mac, who own 62 percent of mortgages in California, aren’t eligible. State Attorney General Kamala Harris said her office is focusing on those government-sponsored enterprises. Her office sued both entities late last year for their roles in the state’s mortgage issues.

Q:Which banks are taking part in the settlement?

A:Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, which used to be GMAC.

Q:Who has a chance at refinancing?

A:Your mortgage must be serviced and owned by one of lenders in the settlement. You also must be current on monthly payments and have no delinquencies within the past year. Other qualifications: You have to be underwater and your interest rate has to be at least 5.25 percent.

Q:Who isn’t eligible to refinance?

A:FHA loans, VA loans, and loans on manufactured homes are not eligible. You’re also ineligible if you’ve been in bankruptcy or in foreclosure in the past two years.

Q:How do I qualify for a principal reduction?

A:The amount of your unpaid principal balance has to be more than your property’s market value. Another requirement is having missed a loan payment or being close to missing one. About two-thirds of the $18 billion coming to California is going toward about 250,000 homeowners to pay down their loans.

Q:Will homeowners know immediately if

they qualify for benefits?

A:No. The settlement process will take time because the commitment period is three years. Harris on Thursday said she expects homeowners could have checks in hand as soon as 120 days but urged homeowners to start the dialogue with their servicers now.

Q:What if I’ve already been foreclosed upon?

A: You may be eligible to get cash if your home was foreclosed upon between Jan. 1, 2008, and Dec. 31, 2011, and your mortgage was owned or serviced by any of the participating lenders.

Q:Where else can I find help to navigate the

process?

A:Call (800) 569 4287 for a referral to a free HUD-approved counselor to help you. Also, here are the individual numbers to the participating banks: •Ally/GMAC: (800) 766-4622 •Bank of America: (877) 488-7814 (Available Monday through Friday from 5 a.m. to 7 p.m. Pacific time and Saturdays from 6 a.m. to 3 p.m. Pacific time.) • Citi: (866) 272-4749 •JPMorgan Chase: (866) 372-6901 •Wells Fargo: (800) 288-3212 (Available Monday to Friday, from 5 a.m. to 5 p.m. Pacific time)

Q:Will homeowners and states still be able to take action against lenders on their own?

A:Homeowners who get checks will not lose their rights to sue lenders in court. And states will still be able to criminally charge lenders and servicers who engaged in deceptive or illegal foreclosure practices.

The Associated Press contributed to this report.

lily.leung@utsandiego.com

Twitter:@lilyshumleung
 

You Can Finally Know Who The Real Listing Agent Is When You Are Looking For Homes In San Diego

Our local mls service listing homes for sale in San Diego County has improved the rules so that the public can now contact the listing agent directly.  Syndicated websites have only attributed the listing to a company name until now.  I believe this empowers both the seller and the buyer to focus on those homes that are listed rather than being diverted to agents that may know nothing about the home, neighborhood or location.

DATABASE ADDS LINK TO LISTING AGENTS

Contact information can now be shown on popular websites

LILY LEUNG • U-T

A debate between real estate brokers and websites such as Zillow and Trulia over listing data continues as the San Diego region’s Multiple Listing Service online database seeks to control content for outside parties.

Sandicor, the county’s MLS, has addeda text field to its listings that allows members to enter contact information, including names, email addresses and brokerage websites. The information, along with the usual listing data, would be disseminated by syndication websites such as ListHub and Point2 Agent, which are sources of information for popular real estate sites.

The main idea is that the contact information in the extra field would be displayed prominently for home hunters to see, nixing any confusion over the listing agent andanagentwho isadvertising on Trulia or Zillow.

The change, in the works since October, follows last week’s heated discussion after a San Diego brokerage cut ties with those two real estate behemoths.

“I think it will be clear to consumers if they want to contact the listing agent, they can,” Sandicor CEO Ray Ewing said. “If not, they can contact others who have ads around (the listings.) We give them the choice.”

Real estate brokers, who don’t have to fill out the new field, also will benefit because the extra information will help drive traffic to their websites, Ewing added.

It is believed that Sandicor is the firstMLSto make such a system change, Ewing said. But he added that at least one real estate brokerage in the U.S. has something similar in place. He’s referring to Howard Hanna Real Estate Services, a Pittsburgh-based company with 4,200 brokers and agents. Company President Howard “Hoby” Hanna told the U-T San Diego that the change went in place the last quarter of 2010 to address the “proliferation of syndicated websites.”

Sandicor said it has alerted ListHub and Point2 Agent to the shift. Whether the companies pull in the new data is up to them, Ewing said. It’s also important to note that real estate brokerages decide whether to send their data to listing syndicators. Zillow’s response?

“I don’t see any direct impact to Zillow, but we haven’t talked to Sandicor about what this means,” said company spokeswoman Cynthia Nowak. “In general, more information about a listing is in the best interest of consumers, so we welcome it.”

Trulia could not immediately be reached for comment.

The new feature will be available to Sandicor’s 17,000 members starting today, and more changes are coming.

Soon, the company will decrease the number of photos that can go out to syndicators to four, down from the maximum of 25. Another upcoming change: Images sent to outside parties will bear watermarked contact information of the listing agents.

lily.leung@utsandiego.com

(619) 293-1719 Twitter:@lilyshumleung
 

 

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Help For Home Owners in San Diego North

MORTGAGE-REDUCTION DEAL CLOSER TO REALITY

California, New York happier with foreclosure-abuse settlement

U-T NEWS SERVICES

California and New York, the key holdouts in a longawaited settlement over foreclosure abuses, moved closer Monday to backing a deal that would force the five largest mortgage lenders to reduce loans for about 1 million households.

But those states, along with a handful of others, had not joined the settlement by a Monday deadline set by the nation’s state attorneys general. And a deal might not be finalized for days.

California has returned to the negotiating table after a four-month absence, a change of heart that could increase the pot for mortgage relief nationwide to $25 billion from $19 billion. Another important potential backer, Attorney General Eric Schneiderman of New York, has also signaled that he sees progress on provisions that prevented him from supporting it in the past.

Their potential support comes in exchange for tightening provisions of the settlement to preserve the right to investigate past misdeeds by the banks, and for stepping up oversight to ensure that the financial institutions live up to the deal and distribute to the hardest-hit homeowners.

The emerging settlement — after nearly 500 days of drawn-out negotiations, public infighting and private cajoling — would force banks to overhaul their mortgage-servicing practices. It also would require banks to provide billions of dollars in aid to homeowners who have lost their homes to foreclosure or who are still at risk, after years of failed attempts by the White House and other government officials to alter the behavior of the biggest banks.

The banks, led by the five biggest mortgage servicers — Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, want to settle an investigation into abuses set off in 2010 by evidence that they foreclosed on borrowers with only a cursory examination of the relevant documents, a practice known as robo-signing. Four million families have lost their homes to foreclosure since the beginning of 2007.

California still has “significant sticking points,” but they may be settled in the coming days, said officials with direct knowledge of the negotiations. That represents progress from a few weeks ago, when California Attorney General Kamala Harris called the proposed settlement “inadequate.”

The officials spoke on condition of anonymity because they weren’t authorized to discuss the settlement publicly.

“I’m less concerned with the timeline than the details,” Harris said in a statement Monday.

Negotiators were working well into Monday night to see if they could persuade more states to join the settlement, an official said.

Some liberal groups and consumer advocates have argued that the expected terms amount to little more than a drop in the bucket, given the size of the housing crisis. Millions of homeowners remain either in foreclosure or are badly delinquent on their mortgages, and the pending deal would reach only a fraction of them.

The settlement, which is subject to approval by a federal judge, would apply only to privately held mortgages issued from 2008 through 2011. Banks own about half of all U.S. mortgages — roughly 31 million loans.

The deal has been toughened in recent days to allow states to pursue lenders who mistreat borrowers in the future. Fines could run as high as $5 million per violation.

Under the deal, the mortgage principal for about 1 million homeowners — who are behind on their payments but owe more than their houses are worth — would be written down by an average of $20,000. An additional 750,000 Americans — about half the households eligible for aid under the deal — would receive about $2,000.

One principal objective for California has been to force banks to help those who were harmed the most. The deal would also provide checks for nearly $2,000 to roughly 750,000 who lost homes to foreclosure. Those figures are contingent upon the number who respond to the offer.

In addition, said Patrick Madigan, the Iowa assistant attorney general, homeowners who participate in the settlement will still have the right to sue the banks for improper behavior in the foreclosure process.

California has been focused on measures that would benefit individual homeowners, while New York has been most interested in preserving its ability to investigate the root causes of the financial collapse.

Another critical issue for California is narrowing the amnesty given to banks because under the state’s False Claims Act, state officials and huge pension funds like Calpers would be able to collect sizable monetary damages from the banks if they could prove mortgages were improperly packaged into securities that later soured. What is more, California’s participation would result in having more money available for many other states, including an estimated $500 million in additional money for Florida.

But the agreement’s terms do not guarantee minimum allocations of mortgage relief by state.

The Associated Press, The Washington Post and NYT News Service contributed to this report.
 

White House Wants More Help For Homeowners In North San Diego 

If Obama gets his way it will be easier for homeowners with higher mortgages to value to stay in their homes.  Good news for us in North San Diego County!  This from the San Diego Union:

HOMEOWNER ASSISTANCE PROGRAM IS EXPANDED

BLOOMBERG NEWS

The Obama administration, seeking to help more homeowners lower their interest rates and shed mortgage debt, will relax the rules on a federal loan-modification program and triple its incentives to banks.

The revised Home Affordable Modification Program, or HAMP, also would pay Fannie Mae and Freddie Mac to forgive debt on homes that have lost value. The government- owned companies, citing cost, don’t reduce principal, a policy that has limited HAMP’s reach because they own or guarantee nearly half of U.S. home loans. About 900,000 borrowers have successfully used the lifeline to refinance, fewer than the 4 million borrowers HAMP — which pays mortgage servicers and investors for successfully modifying loans — was expected to reach.

Friday’s program changes are separate froma newrefinancing plan that President Barack Obama promised to deliver in his State of the Union speech Tuesday.

Whether Fannie Mae and Freddie Mac accept the administration offer is up to Edward DeMarco, acting director of the Federal Housing Finance Agency, which is charged with minimizing losses to the companies and to taxpayers. DeMarco said he would analyze the potential costs and benefits of participating in HAMP’s principal write-down effort.

The HAMP expansion, called HAMP Tier 2, triples incentives paid to banks that reduce mortgage principal, to a maximum of 63 cents for every dollar of debt forgiven. Investors who rent out their properties would be eligible to refinance under the new rules. The deadline for applying for a HAMP loan modification is extended for a year, to the end of 2013.

Why Should I Buy Real Estate At All.. Especially in North San Diego County?

January 26, 2012 JoeCobb Real Estate Issues

Why Should I Buy Real Estate At All.. Especially in North San Diego County? Thank you for giving me the opportunity to tell you why i have enjoyed my career as a Realtor and Real Estate Broker since 1978.

We start with a comparison of homeownership vs renting indefinitely. These are the advantages:

–You live in a home you have control over. You can change virtually anything about the decor, the landscaping, the appliances, the cabinets, the walls, the roof, the heating and air-conditioning, the looks the feel of your own environment for potentially all of the rest of your life. And without asking for permission of a landlord.

–You will never get a rent raise from your landlord. Rents in North San Diego always keep pace with inflation of housing in the area. Because we are in a high demand area. You will definitely have higher rents. Obviously, when you buy that home you should be sure you have long term, 30 year fixed rates that conform to your needs so what happened in the last decade does not happen to you.

–You will be paying off your own mortage, not yourlandlord’s mortgage. You will have that savings and equity not the landlord.

–After tax benefits of ownership may make your payments immediately, if not overtime, much less than if you rent.

–You take advantage of the financial magic of leverage. If you are a veteran and put no money down, or use an FHA loan with 3 1/2% down, or even put 20% down you will be leveraging that amount as if it were the whole price of the home as if you had put all cash down. If the home goes up in value more than you put down you have returned all of your investment and all appreciation from then on is at a high rate of return. Talk to a Real Estate Expert to look at your own situation.

–Most people ages 50 and above have most of their net worth in their homes. Renters would have none.

–In California and many States you can sell your home and move your property tax base into the the next home often leaving your taxes the same or lower than first time buyers right next door.

–An increase in value is taxed only when you sell your home at capital gains levels. You currently have tax laws that forgive up to $500,000 of that gain no tax. Nice!!!

BACK TO THE QUESTION OF WHY YOU, PERSONALLY, SHOULD BUY. That depends on where you are in your life. If you are young, married or single, and willing to move away or to another local neighborhood, you should probably rent. Or if you are ready to pick a home you will live in over a period of time, it is a good bet you should buy. At this point of the real estate cycle the next 5 to 10 years should show increasing values compared to the last 6 years of decreasing prices. Either way, I recommend you consult a Real Estate Expert to help you decide.

NOW THE QUESTION OF WHY BUY IN NORTH SAN DIEGO COUNTY. As a resident Realtor and Real Estate Broker living in this area and selling all of San Diego for over 22 years I can give you some of my thoughts.

–We moved here to North San Diego Inland because of the schools and the community feeling in the Poway Unified School area. That School District covers the commuinities of Poway, Sabre Springs, Penasquitos, Torrey Highlands, 4S Ranch, and Rancho Bernardo. We raised 3 or our kids from elemenatary through High School and now have 6 Grandkids in, or entering that same Poway School District.

–North San Diego Coastal has excellent schools and neighborhoods i am equally familiar with. I owned a Real Estate Company in the early 1980's in Solana Beach and have helped buyers and sellers there ever since.

–North San Deigo region is poised for growth along the I-5, I-15 and Hwy 78 corridors due to the commercial, industrial, recreational and travel routes that make the area a hub of activity near the Greater Los Angeles coastal and the eastern Riverside, Palm Desert populations.

–Always consult a Real Estate Expert when it comes to your own personal needs.

North San Diego County and San Diego Commercial Real Estate Is Strong

Rancho Bernardo, Poway, Carlsbad commercial areas continue to attract investors and users to the area.  The expected growth of Pacific Rim populations in San Diego is strong as our countries trade policies continue in the region.  This San Diego Union article shows the strength of our region as compared with other major growing cities in the world.

COMMERCIAL REAL ESTATE INVESTMENT STRONG IN S.D.

City ranks 25th among world’s top locations, according to report by brokerage company

ROGER SHOWLEY • U-T

San Diego ranks 25th among the world’s top cities for commercial real estate investment, according to a report at the World Economic Forum in Davos, Switzerland.

The Jones Lang LaSalle brokerage tied the rankings to the amount of investment from the beginning of 2010 through the third quarter of last year. The 30 cities as a group attracted 50 percent of all commercial real estate investment worldwide in those two years, the company said. It’s the first time Jones Lang has compiled such a ranking.

The firm, which released the report Wednesday, said San Diego attracted $5 billion over the past two years and tied with five other cities in Europe, South America and Australia. San Diego’s ranking near cities such as Berlin should not be surprising, given the more than $1 billion spent in 2011 on hotels alone, the report said.

The largest investment went to London at $47 billion and the smallest to Manchester, England, at $4 billion.

San Diego is not now and will not be among the top 30 cities by population in 2020, the report showed. But the first-tier investment cities, including San Diego, will likely be joined by other upand- coming metropolitan areas.

Among the up-and-comers are 10 cities in China, deemed the fastest-growing in the world. Europe boasts four “mega cities” — London, Paris, Moscow and Istanbul.

The authors believe investor interest will spread to more than 300 cities worldwide, on all continents, and perhaps mean that 50 cities, such as Mexico City and Delhi, India, will represent half the commercial investment in 2020.

“While investors are still choosing to invest in strong, stable and transparent cities, new destinations offer a new world of potential,” said Christian Ulbrich, CEO of Jones Lang’s Middle East, Europe and Asia group.

Eli Gilbert, Jones Lang’s researcher in the San Diego office, said investors may still focus on San Diego in the years ahead and keep it in the top tier of commercial markets.

“The U.S. and San Diego are places where investors want to put their money,” Gilbert said. “It is the safest place to put investment dollars and has a terrific track record despite the recession.”

He said San Diego’s geography obviously limits its potential for growth, but its high-tech industries and institutions should continue to attract investor interest. Currently, he agreed, San Diego doesn’t quite qualify as a first-tier or “gateway” city the way New York, London and Tokyo do.

“As those sectors continue to grow, San Diego is poised to breach that first tier,” he said. “I don’t see that changing at all.”

Gilbert said Tijuana, with its manufacturing base for cars, flat-panel TVs and other products, also figures into San Diego’s long-range outlook “once the crime situation gets resolved a little better.”

roger.showley@utsandiego.com

(619) 293-1286 Twitter:@rmshowley
 

Major Banks Agree To Help Underwater Home Owners But San Diego North County Homes Not Included Yet.

BANKS ACCEPT MORTGAGE REFORMS

Five lending giants’ settlement could be as high as $25 billion

DEREK KRAVITZ

ASSOCIATED PRESS

The nation’s five largest mortgage lenders have agreed to overhaul their industry after deceptive foreclosure practices drove homeowners out of their homes, government officials said Monday in Washington. A draft settlement between the banks and U.S. states has been sent to state officials for review.

Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement, which could be as high as $25 billion. That would drop to about $19 billion if California Attorney General Kamala Harris decides not to sign on, two people familiar with the matter told Bloomberg News.

Banks would fund loan principal write-downs for homeowners and provide refinancing.

But the agreement could reshape long-standing mortgage lending guidelines and make it easier for those at risk of foreclosure to restructure their loans. And roughly 1 million homeowners could see the size of their mortgage reduced.

Five major banks — Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial — and U.S. state attorneys general could adopt the agreement within weeks, according to two officials briefed on the discussions. They spoke on condition of anonymity because they are not authorized to discuss the agreement publicly.

The settlement would be the biggest of a single industry since the 1998 multistate tobacco deal. And it would end a painful chapter that grew out of the 2008 financial crisis.

Nearly 8 million Americans have faced foreclosure since the housing bubble burst. In some cases, companies that process mortgages failed to verify the information on foreclosure documents. The worst practices, known collectively as “robo-signing,” included employees signing documents they hadn’t read or using fake signatures to sign off on foreclosures.

But some say the proposed deal doesn’t go far enough. They have argued for a thorough investigation of potentially illegal foreclosure practices before a settlement is hammered out.

New York, Delaware, Nevada and Massachusetts have argued that banks should not be protected from future civil liability. The deal will not fully release banks from future criminal lawsuits by individual states. In December, Massachusetts sued the five major banks over deceptive foreclosure practices.

Harris, the California attorney general, said in a statement that her ability to go after potential wrongdoing by mortgage lenders “remains a key lens through which she will evaluate any proposals.” In September, California announced it would not agree to an earlier version of a settlement over foreclosure abuses that state and federal officials have been working on for more than a year.

But her office declined to comment on the proposed deal Monday. And it wouldn’t say whether California, the state with the greatest number of people who lost their homes to foreclosure, would agree to the deal.

A signed deal is not expected this week, said Geoff Greenwood, a spokesman for Iowa Attorney General Tom Miller, who has led the 50-state negotiations. Greenwood said late Monday that there are “terms we must still resolve.”

The settlement would only apply to privately held mortgages issued between 2008 and 2011, not those held by government-controlled Fannie Mae or Freddie Mac. Fannie and Freddie own about half of all U.S. mortgages, roughly about 31 million U.S. home loans.

As part of the deal, about 1 million homeowners could also get the principal amount of their mortgages written down by an average of $20,000. One in four homeowners with a mortgage — or roughly 11 million people — owe more than their home is worth. These so-called “underwater” borrowers have little chance at refinancing.

In October 2010, major banks temporarily suspended foreclosures following revelations of widespread deceptive foreclosure practices by banks. Discussions then began over a national settlement.
 

If You Sell Your San Diego Home In This Market At The Right Price You Get To Buy Another At The Right Price In This Same Market....  That Is Good!!

Rick Hoffman of Coldwell Banker and Joe Cobb of Realty Experts agree on important issues.  This article written by Rick as guest columnist in the San Diego Union is real estate 101.  We at Realty Experts are also experiencing multiple offers on properly priced and marketed properties.  With over 35 years in Real Estate in San Diego we see the tide turning and great home buying and selling opportunities developing in 2012.  It is time to look at the possibility of finding that right home in the right neighborhood with the right terms.  And the demand is there to sell that home in San Diego and buy that one that gets your where you really want to live.

His Guest Column:

What is the biggest challenge in San Diego real estate?


The current real estate market dynamics have presented many challenges for both buyers and sellers alike — some homes not selling and financing, while available, can be difficult to obtain — leaving many without a clear understanding of the real issue affecting the housing market.

Let’s start off by agreeing that real estate is first and foremost a commodity.Sure,it’s also the place where we call home,raise our kids, celebrate life,and it provides us with a safe haven in an assortment of difficult times.

But as a commodity,challenges arise when faced with a shortage of inventory.

Well, guess what? San Diego is suffering from a lack of inventory of homes for sale.

In addition, home builders are still not supplying new inventory, which has compounded this challenge.To further add to the quandary,the net population of San Diego continues to show growth.I guess sunshine,blue skies,and a mild climate are still things people want in their lives.

However,reports from agents holding open houses seem to indicate that buyers are not only looking,but they are looking in record numbers.  At a recent sales meeting, one agent shared a recent experience having written an offer on a property listed at nearly $1,000,000,only to lose out when there were 12 other offers on the same property.

My observation is that when properties are listed for sale at the proper price the consumer interest is there to produce a sale.When properties are listed in excess of market value demand is not there.This seems to validate the commodity theory that price is the biggest factor in how fast inventory is absorbed.

Call me crazy, but my wife and I have decided to evaluate the sale of our own home so we can buy a lot to build a home that provides exactly what we want and what fits our lifestyle best at this time in our lives.  While I won’t be selling at the top of the market, I do believe there is a definite and valid economic opportunity for us to consider doing so.

Will we be successful? Only time will tell — but, nothing ventured,nothing gained.

So, if you are someone who owns a home, has equity in it and has a reason to sell, this shortage of inventory might be perfect for you to take advantage.

Whether you are moving up or moving down, there are opportunities that remain — we often just need to be made aware of such opportunities,and then act strategically to take full advantage.

If this column sparks your interest,I would suggest contacting a reputable Realtor to explore your possibilities and opportunities.You have nothing to lose, and possibly everything to gain.

Oh and don’t forget, interest rates are still at historic lows and this will not last forever.
 

If you really want to buy a home in San Diego you really can!!! 

Those loans we all saw in the first decade of this century are gone.  They were based on custom unreliable underwriting guidelines and practices that  were designed to put people in homes; the problem was it was done with loans they could not afford. 

The good news is we are back to the old guidelines that followed good lending practices. 

The best news is the historic loans like VA and FHA and community programs are still there for those who can afford them and want to buy a home.  Therefore the veteran can still buy with no money down, the FHA loans with 3.5% down and lesser credit requirements, and the cash to new loans are still there.

If you have believed the news that you may not qualify for a new home because it is too hard to get one.  Do yourself a favor and just find out.  With prices at bottom and interest rates at a 50 year low it is truly the time to buy if you can.

Supply And Demand Are Alive And Well In San Diego Home Market.  A study by Trulia shows lots of interest in San Diego homes when analyzing their websearch data. 

Of course, we all know San Diego is one of the most desireable places to live on the planet.  That is why we are here...  Just look at that weather and compare!!!!!!  Don't forget our Tech industries bio industries and our Univerities.] Let alone the proxivity to the ocean, snowy mountains, and desert.

In our opinion we have a lot of pent up demand for housing from the recession.  Equals prices will rise at the end of the recession as they always have.  It is a fantastic time to buy....NOW.

REAL ESTATE

Europeans searching for San Diego homes

San Diego was the 14th most-searched U.S. city among European house hunters, based on global traffic on real estate site Trulia.com.

Topping the list in order were Los Angeles, New York and Miami.

What prompted Trulia to compile the rankings? The theory that the European debt crisis has driven people in areas such as Greece, Italy and Spain to scope out homes in the U.S. According to the company’s data, there appeared to be a 17.8 percent spike in interest among the Greeks when comparing the first quarter of 2011 to the last quarter. Italy’s interest in American homes increased 7.2 percent during the same time frame.

Here’s what Trulia says about the findings: “Greece — which has often been referred to as the ‘patient zero’ of the region’s current debt epidemic— came in first place with a 17.8 percent spike in interest. While there are probably a multitude of other contributing factors, this simple observation suggests that many of these Greek homebuyers aren’t just looking for a home away from home. Instead, they’re looking to take their money and fly the coop.”

Trulia also broke down which European Union countries were interested in which U.S. cities. For instance, Trulia determined that the Germans, Italians and Swedes were among the most interested in San Diego, based on the percentage of the site’s global traffic from each nation.

TheU.S. could see an influx of international homebuyers if a key piece of legislation is passed. Sens. Charles Schumer, D-N.Y., and Mike Lee, R-Utah, want to expedite the visa process for foreign investors on one condition: They must spend $500,000 on property.

When the San Diego Economy Gains So Does Demand For Housing.  The good news for those on the fence about buying a home is the economy is improving and home purchases will follow.

FED SURVEY REVEALS GROWTH AT END OF 2011

Modest expansion comes despite weak housing, hiring

BLOOMBERG NEWS & ASSOCIATED PRESS

The final weeks of 2011 were the economy’s best since it seemed to be slipping toward recession in late spring — a shot of optimism for 2012.

Consumers spent more freely. Factories made more goods. Americans stepped up travel. And the auto industry enjoyed its best stretch of the year.

While hiring was limited and housing remained stagnant, the economy “expanded at a modest to moderate pace” from late November through the end of December on increased holiday retail sales, demand for services and oil and gas extraction, the Federal Reserve said in its Beige Book anecdotal business survey released Wednesday in Washington.

It said all but one of its 12 banking districts experi­enced some growth from late November through the end of the year. The one exception was Richmond. Even in that district, the Fed said economic activity either “flattened or improved slightly.”

The report — which comes out two weeks before each Fed meeting on monetary policy — may reinforce the views of a majority of Fed officials, who see an economy that’s expanding without being strong enough to reduce joblessness as quickly as they would prefer. The unemployment rate dropped to 8.5 percent in December from 9.4 percent a year earlier. Fed officials are also urging lawmakers to try more housing-aid programs.

The encouraging message comes just six months after the economy nearly stalled under the weight of high food and gas prices and supply disruptions from Japan that slowed U.S. manufacturing.

“The Fed’s report Wednesday confirmswhat everyone else has been seeing in the economic data from retail sales to auto sales and manufacturing — activity is improving,” said Jennifer Lee, senior economist at BMO Capital Markets.

U.S. manufacturing continued to lift the economy, particularly in industries that make heavy equipment and steel. That has helped boost energy, farming and auto manufacturing sectors, the report said.

The depressed housing market has hurt some manufacturers. As an example, the Fed cited weakness among furniture manufacturers in the Richmond, St. Louis and San Francisco districts.

Inflation remained subdued, largely because high energy prices have eased.

Most economists are predicting the economy grew at an annual rate of 3 percent in the final three months of last year. That would be an improvement from the summer, when the economy expanded just 1.8 percent. And it would be much better than the 0.9 percent annual growth rate in the first half of the year.

Still, the U.S. economic recovery remains vulnerable to setbacks. Europe’s debt crisis could lower demand for U.S. exports. Consumers may pull back on spending, especially if their wages continue to stagnate.

The Federal Open Market Committee next gathers Jan. 24-25 in Washington as officials debate whether to try new actions to lower borrowing costs.

The Beige Book is released eight times a year. The findings from each of the Fed’s regional bank districts are all anecdotal; there are no numbers. The idea is to detect trends in consumer spending, manufacturing and real estate, among other areas.
 

Tips For Renters in San Diego Who Are Struggling To Make That Monthly Payment:

Rent is due; now what?

By Neil Fjellestad, President

Fjellestad, Barrett & Short

What happens if you lose your job and rent is due on the first?

Hopefully you have emergency funds for this kind of setback, but what if you don’t? Some thoughts: • Take immediate steps to begin unemployment benefits; take control of outgoing expenses; create a realistic 90-day budget and prioritize outstanding payments.

• Pay your rent first. It’s probably your largest disbursement and takes priority. Failure to meet this obligation can have negative implications, now and later. Examples: late fees, eviction costs and moving expenses; bad credit that will haunt you for years, hampering your ability to qualify for rental housing, utilities and major purchases. These things are probably harder to fix than a job loss.

A lease is a legally binding document and is taken very seriously by credit providers. It should be your top priority.

• Rental owners, operators or managers are usually local people. Get a face-to-face appointment and lay out a payment plan. Don’t make them start chasing you for the rent before you step forward.

• If this plan calls for a series of installments, be specific and realistic about the amounts and payment schedule. Offer to sign an addendum to your lease that spells out these specifics, and live up to every term. Provide a guarantor if possible to add more confidence to your intentions.

• Ask for assurance of a positive reference when the time comes, as long as you perform as agreed.

• If you need to terminate your lease early or need to consider relocation after a period of efforts to find new employment, don’t hesitate to communicate this early.

It gives you a point of reference should you need to take this alternative later.
 

San Diego Veterans Have V.A. Loans To Buy Their Homes.

Many veterans may have forgotten the V.A. loan option.  It you are a veteran, including 6 year National Guard or Reserve you may want to find out if that V. A. loan is the best for you. With the interest rates and prices so low it would be a shame not to buy this year if you are only short the down payment. 

From the San Diego Union:
GUEST COLUMN

VA loans opening homeownership doors for more veterans
Past and current military personnel looking for financing in today’s more stringent mortgage environment can take advantage of the VA loan program, which has been available for more than six decades to help members of the military own their own homes.

The program,established in 1944 as part of the Servicemen’s Readjustment Act,is available for any individual who has served in active duty in any branch of the U.S.military for a minimum of 90 days.

“The borrower receives a significant benefit by being able to finance a home without the requirement of a down payment,” said Danny Valentini,SVP-San Diego for HomeServices Lending.“VA loans also prohibit lenders to require the veteran to carry expensive private mortgage insurance that are attributed to other types of loans when financing loans over 80 percent of the value or purchase price.”

A VA loan does require the borrower to pay a one-time funding fee on their purchase,which can be paid up front or financed into the total cost of the loan.The funding fee for regular military members is 2.15 percent of the loan.Reservists pay a fee of 2.40 percent.

Non-active duty personnel,such as individuals in the Army Reserves or National Guard,may apply for a VA-backed mortgage provided they have completed six years of service.Spouses of deceased or missing military members are also eligible if they have not remarried.Those who were dishonorably discharged from any military branch are not eligible.

“There’s been a steady increase in VA loans during the past two years as compared to the last decade,”said Valentini.“However,one of the challenges that could be keeping veterans from taking advantage of the VA benefit,is making more veterans aware of this benefit.” Statistics provided by the Department of Veteran’s Affairs show that roughly 25 million people are eligible for a VA loan yet only 10-15 percent of those have taken advantage of it when buying or refinancing.

One reason is that for many years leading up to the mortgage crisis,there were many conventional mortgage products that were easier or more economical to the veteran than the VA loan.

“Prior to the 2008 ‘mortgage meltdown’,100-percent financing had become a common option attributed to conventional loans,”Valentini said.“Consumers logically questioned the cost of paying the VA funding fee when considering 100 percent financing? VA also required more control over the appraisal process,and required additional disclosures. Lenders, brokers and consumers may have found the process more cumbersome than the former ‘free wheeling’ conventional loan process.”

Many veterans,especially those not so recently discharged, aren’t sure of VA loan benefits or that the program even exists.With the VA loan the veteran can buy a home with little to no money out of pocket.

Talk to a mortgage representative for more onVA financing.
 

You Can Buy San Diego Real Estate even if you may think your credit is not good enough.

This San Diego Uniion article shows you may be scared away from even trying when your new home is just an application away.  The key is to be able to realistically afford it.   The truth is you may be able to pay less for your monthly living by buying rather than renting.  In fact, the interest rates and San Diego home prices are so low it is time to look at buying before they turn around and you are priced out of the San Diego market.

KENNETH HARNEY Nation’s Housing

INFORMATION GAP KEEPING MORTGAGE SEEKERS FROM DEALS

Could gloomy popular assumptions about how tough it is to get approved for a mortgage be scaring away large numbers of people who are qualified from even applying?

Could the same worries — I can’t come up with the big down payment I need, my credit scores are too low, my bank account has almost none of the “reserves” lenders want to see — put a needless damper on a housing recovery in the new year?

You bet. Lenders and economists will tell you flat out: The lack of accurate information about the availability of loan programs that are designed to address special needs is discouraging far too many consumers from even considering an application, much less shopping around.

Mortgage banker Alex Stenback of the Residential Mortgage Group in Minnetonka, Minn., says he sees it every day: “People just aren’t aware of what’s possible right now” and as a result, they are missing real estate prices and long-term interest rate opportunities they shouldn’t.

Doug Lebda, founder and CEO of LendingTree, the online site that allows banks to make competing offers to applicants, believes that “the fear of being rejected” because they don’t conform to standards that may not even exist, is keeping qualified applicants on the sidelines for no reason.

For example, what’s needed for an acceptable down payment? Is it 20 percent? 10 percent? Less? Yes, it’s less — and potentially a lot less if you qualify for the right program. The widespread erroneous assumption that banks require a minimum 20 percent for conventional loans may have arisen from

Don’t assume you can’t qualify for a loan

heavy media coverage this spring and summer of a controversial proposal by federal agencies calling for borrowers to put down that much if they want to get the best interest rates and lowest fees.

Also contributing to incorrect beliefs about down payments: The Obama administration floated the idea of a phased-in move to 10 percent upfront cash for all loans eligible for purchase by mortgage giants Fannie Mae and Freddie Mac, who together dominate the conventional home-loan sector.

But neither the 20 percent nor the 10 percent plan has been adopted and the odds of either moving forward in 2012 are remote. Fannie Mae’s and Freddie Mac’s standard minimums are still 5 percent with mandatory mortgage insurance coverage.

If you have little or no cash to put down, there are multiple options for you: FHA requires just 3.5 percent down on its insured mortgages. Other programs let you go to zero— even finance more than the price on the house when fees are rolled into the mortgage — provided you fit into an eligibility niche. If you qualify as a veteran or active member of the military, you can get a zero-down VA-guaranteed mortgage.

Plus the VA allows your seller to pay your loan fees and closing costs provided they don’t exceed 6 percent of the house price.

You can also buy with nothing down if you are purchasing a home in any of the many communities around the country that are eligible for rural (USDA) guaranteed mortgages. Though the property may be located on the outskirts of a large metropolitan area and might not strike you as particularly “rural,” if the local population is below roughly 20,000, there’s a decent chance you’re eligible.

The little-publicized USDA guaranteed home loan program, by the way, is booming. In the last fiscal year alone, according to housing administrator Tammye Trevino, more than 130,000 borrowers received low or no down payment guaranteed mortgages — quadruple the number of loans extended as recently as 2006.

What about credit? Haven’t lenders been pushing up minimum FICO scores into the mid-700s and rejecting applications with lower scores outright? Not everywhere. Though most lenders doing FHA loans require 620 to 640 scores to get you in the door, a few of the biggest FHA originators, such as Quicken Loans, will accept scores down to 580.

Bob Walters, Quicken’s chief economist, says underwriters scrutinize low FICO applications extra carefully but are seeing good to excellent performance from them: Not one has gone seriously delinquent this year.

And how about debt-to-income ratios? Aren’t they tighter than ever? Not really. Lenders say that when loan applications go through the “automated underwriting” systems used by Fannie, Freddie and FHA, borrowers with high total monthly debt levels of 45 percent to 55 percent of household income — well beyond the posted limits — frequently get approved if they have positive compensating information elsewhere in the application.

Bottom line: Don’t assume you can’t qualify for a mortgage in 2012. Talk to lenders and seek out loan products that offer flexibility where you need it. You just might be surprised.

Kenneth Harney is a columnist for The Washington Post Writers Group.

Send email to kenharney@earthlink.net.

San Diego Regional Construction Permits Have Healthy Jump. 

San Diego homes are poised for recovery.  This is a sign prices have stabilized and it is time to buy at the bottom of the market with historically low rates.

Driven by apartments, year-to-date up 59 percent but still far below boom levels, board says

ROGER SHOWLEY • U-T

San Diego County housing permit activity soared in November to levels not seen in six years, the Construction Research Board reported Thursday.

There were 586 units authorized last month, nearly four times the 154 approved in November 2010. It was the highest November number since 2005, when 801 units got the go-ahead.

Last month’s count also was nearly three times October’s 198 units and, year to date, the total residential permit figure is 4,855, up 59 percent from a year earlier. However, the totals still pale in comparison with the huge housing output of the 2000s, when annual production ranged up to 18,000 homes. This year, the total will be less than a third of that.

The difference is apartments.

Whereas for-sale housing was the star six years ago, thanks to low interest rates and easy credit, the current market caters to renters. And developers are responding by building more apartment complexes.

“For-sale units tend to be built in phases, tied to sales,” said Peter Dennehy, San Diego analyst for John Burns Real Estate Consulting. “Apartments are typically built in big chunks.”

Many tenants lost their homes to foreclosure or are shying away from buying because they can’t qualify

for a loan or are worried that home prices are languishing and unlikely to rise significantly for years to come.

In November, there were 362 multifamily units approved, compared with 224 single-family units. An estimated 70 to 75 percent of those units are for rent, with the balance as for-sale condos.

Year to date, multifamily permits, at 2,765, were nearly three times last year’s production over the same period, 1,078.

Meanwhile, single-family homes so far total 2,090, not much higher than 1,976 for the same period of 2010.

What may be restraining the for-salemarket is financing and pricing. Despite the record-low mortgage interest rates, it is harder to get loans than five years ago because of tougher underwriting standards and tighter credit requirements.

As for pricing, San Diego prices are dramatically down from peak levels — $517,500 was all-time high set in November 2005, and last month the median stood at $315,000, according to DataQuick. But San Diego still remains a relatively unaffordable market, based on household income standards. And with the continued distress in the resale market, prospects for rapid appreciation are weak, some experts say.

Michael Carney, executive director of the Real Estate Research Council of Southern California at Cal-Poly Pomona, said it may be 20 years before the median price exceeds the records set in 2005-6.

“The market is responding the way a market ought to respond to incentives,” he said, “and incentives right now are clearly in rental housing.”

In the for-sale market, Dennehy said starter homes, priced at $300,000 and below, are doing well in certain pockets in the county. Many buyers are actually the same people who lost their homes to foreclosure two or three years ago.

“What wasn’t affordable three or four years ago is now affordable,” he said.

As an example of the new-home market mix, Dennehy cited Civita in Mission Valley, where 15 town homes have been released for sale but several hundred apartments are under construction.

roger.showley@uniontrib.com

(619) 293-1286 Twitter:@rmshowley

Signs of improvement in San Diego Home Sales.  We are experiencing tiny, but steady, improvements in the housing sector of San Diego County.  Now is the time to consider buying with the market interest rates low and the prices flat.  Look at your New Year Resolutions now.  If you need to move in 2012 it is time to plan that move so you won't be left behind when the rates and prices increase..

REAL ESTATE

County foreclosures were flat last month while default notices dropped

Figures released Monday from DataQuick show the number of San Diegans who lost their homes to foreclosure has flattened, while default notices in the county declined last month. The data firm counted 666 foreclosures in November, down 0.1 percent from October and down 7.9 percent from a year ago. Last month’s tally is now the lowest since November 2007, when the county recorded 478 trustees’ deeds, which signal a home has been lost to foreclosure.

Meanwhile, 1,645 residents in November received default notices, which kick off the formal foreclosure process. That’s 14.4 percent lower than October and 0.9 percent lower than a year ago.

The county saw a higher-thanusual blip of such notices in August, when they soared to 2,094. But default notices have since fallen to numbers closer to the one-year average of 1,593, Data­Quick figures show. Falling foreclosure or default numbers don’t automatically mean the distressed market is getting better. Drops could also be attributed to other reasons, including delays by lenders and the effects of the robo-signing scandal in which banks had reportedly employed workers who signed off on loan paperwork without proper review.

DataQuick analyst Andrew LePage said the short- to medium- range picture of distress still looks “very murky,” considering we don’t know how lenders are maintaining their inventories of homes. Another unknown is how many borrowers will complete the formal foreclosure process instead of other alternatives, such as short sales and loan modifications.

It took an average of 9.9 months for a home in California to be foreclosed on, starting with the notice of default, based on a third-quarter analysis by DataQuick. That’s up from 8.7 months in the third quarter of 2010.

The majority of current homeloan defaults are from four to six years ago, with the median origination date at the third quarter of 2006, the most recent Data-Quick numbers show. That’s been the case for almost three years, which shows lax rules in mortgage underwriting likely peaked during that time, the report added.

LILY LEUNG • U-T

If you own a rental in San Diego the vacancy rates are low and the outlook is great.

REAL ESTATE

Demand for rentals is expected to grow

The rental vacancy rate in San Diego County appears to be “bouncing along” and demand is expected to grow in coming years, said a leading trade expert Wednesday, citing a recent survey.

“The message here is: The rental market is stable,” said Bob Pinnegar, the exiting executive director of the San Diego County Apartment Association.

The share of unoccupied county rentals in the fall was 4.3 percent, up from 3.9 percent in the spring but down from 4.6 percent in fall 2010, based on the association’s most-recent numbers.

The peak vacancy rate during the 2000-2010 cycle was 5.4 percent in 2009, while the low was 1.6 percent in 2000.

Why have vacancies gradually inched downward since 2009?

“I think in part it’s fueled by uncertainty in the for-sale market,” said Pinnegar, who is leaving for a job at the National Apartment Association in Washington, D.C.

Here’s a ranking of vacancy rates, by region: 1) South Bay: 5 percent 2) East County: 4.8 percent 3) North County: 4.3 percent 4) City of San Diego: 3.8 percent The numbers show people are “moving back to the core of the cities” instead of the suburbs as consumers are paying heed to higher gas prices, Pinnegar said.

The South Bay likely has the highest vacancy rate because of its high levels of less-expensive distressed homes for sale, he added.

Results from the survey, done twice a year, are based on rental owners who represent close to 20,000 units in the county.

LILY LEUNG • U-T

For all business news, visit the U-T business page at facebook.com/ sdutbusiness, with links to breaking news stories as well as other items collected by the U-T staff.

Fantastic relief for the middle to high end properties in San Diego.  North county areas affected include Coastal, Torrey Del Mar, Highland Ranch, 4S Ranch, RAncho Bernardo, Penasquitos, Poway, Scripps Ranch, Escondido, San Marcos, Fallbrook, Hidden Meadows, San Marcos, and Vista or whenever a home needs a mortage of that amount.  This will relieve the shortage of mortages in that range making it possible for more people to buy. 

KENNETH HARNEY

Nation’s Housing

NEW LOAN LIMITS MAKE FHA TAKE ON LARGER ROLE

After a year characterized by grumpy partisan gridlock, Congress came up with a Thanksgiving compromise that could change the mortgage choices of buyers and refinancers in more than 660 markets across the country: It raised maximum loan limits for the Federal Housing Administration while leaving loan ceilings untouched for Fannie Mae and Freddie Mac.

In effect, this may make FHA the go-to financing option for borrowers needing loans up to $729,750 — with down payments as low as 3.5 percent — in high-cost areas of California, metropolitan Washington, D.C., New York, New Jersey and scattered counties in other states including Massachusetts, Florida and North Carolina. Fannie Mae- and Freddie Mac-eligible loans in those areas, meanwhile, stay capped at $625,500.

Equally important, the new plan raises the FHA ceilings for purchasers in hundreds of more moderately priced markets. Seattle-area buyers’ maximum FHA loan amount jumped to $567,500, while the Fannie Mae-Freddie Mac ceiling remains at $506,000. In Hartford, Conn., the limit for FHA is now $440,000, up from $320,850;

FHA may now be best option for larger loans, but expect higher fees

FROM C1

Fannie and Freddie remain capped at $417,000.

Buyers with low down payments in Portland, Ore., who previously had been limited to FHA mortgages of $362,250, can borrow up to $418,750 under the new plan, $1,500 more than they can get from Fannie and Freddie, which generally require steeper down payments and higher credit scores.

The new loan ceilings in hundreds of markets are at the core of the compromise: They raise the maximum FHA loan amount in all areas of the country to 125 percent of the local median home-sale price, while leaving Fannie Mae’s and Freddie Mac’s limit at 115 percent of median.

What motivated Congress to create separate-and-unequal rules that transform FHA — traditionally a haven for moderate income, firsttime buyers with minimal cash — into a key source of financing for buyers in upper- as well as midbracket markets?

Nobody in Congress actually proposed this idea at the start. By a 60-38 vote in October, the Senate passed an amendment raising all three agencies’ limits to $729,750 in high-cost areas and 125 percent of the median sale price elsewhere. The goal — lobbied aggressively by realty and homebuilding groups — was to inject needed oomph into lagging home sales. But Republicans in the House balked at doing anything that might prolong the existence of Fannie and Freddie, both the targets of scathing criticism for their multibillion-dollar costs to taxpayers and big bonuses for top executives.

What ultimately emerged from the legislative scrum was the current compromise penalizing Fannie and Freddie, while boosting FHA. House Republicans weren’t enthusiastic about helping FHA, either — the agency faces its own financial challenges — but unlike Fannie and Freddie, FHA is subject to congressional appropriations and closer oversight. Republican critics held their noses and voted for the plan.

What will this mean for buyers from now through the end of 2013, when the compromise expires? “There’s no doubt this will drive more business to FHA,” said David H. Stevens, former FHA commissioner and current president and CEO of the Mortgage Bankers Association. Annie Austin, a loan officer with Cobalt Mortgage in Bellevue, Wash., said: “With (Fannie and Freddie) limited to $506,000 (locally), FHA is going to become the darling of the industry again” at $567,500. Bob Walters, chief economist of Quicken Loans, one of the largest national lenders, said “the increased loan limits will benefit many consumers— especially those looking to borrow larger amounts but (who) are in a credit situation where Fannie Mae and Freddie Mac loans are not available or optimal.”

The switch to FHA could entail some pain, however. Tim Kepler, a loan officer with Land Home Financial in Danville, noted that the agency raised its upfront mortgage insurance premiums from 0.5 percent of the loan amount to 1.15 percent earlier this year. This “will increase (applicants’) closing costs over a (Fannie or Freddie) loan.”

The premium can be financed, but can add substantially to the costs of high-balance mortgages — more than $500 a month on a $700,000 loan, according to Brian Chappelle, head of Washington, D.C., consulting firm Potomac Partners. Bruce Calabrese, president of Equitable Mortgage in Columbus, Ohio, says the hefty new premiums make “FHA too restrictive and unattractive” for most refinancers in his area, even with slightly higher loan ceilings.

Bottom line for you as a shopper: Take a hard, close look at FHA with a local loan officer, in light of the rule changes. Pencil out the costs, down-payment requirements, and more generous standards on credit. FHA may be your best option. But then again, the higher fees just might change your mind.

Kenneth Harney is a columnist for The Washington Post Writers Group. Send email to kenharney@earthlink.net.

San Diego Real Estate values go up and down but always trend up over time.  The good news is we are bouncing at the bottom in synch with the economy.  And as the economy becomes stronger buyers become more confident and take advantage of the low prices and low interest rates.  The signs of recovery in the economic indicators for San Diego as reported in the San Diego Union. 

ECONOMIC GAUGE SHOWS STEADY RISE

Some analysts expect stronger growth in the current quarter

MARTIN CRUTSINGER

ASSOCIATED PRESS

The latest evidence that the economy is making steady gains emerged Friday from a gauge of future economic activity, which rose in October at the fastest pace in eight months.

A string of better-than-expected economic reports this month has led some analysts to revise up their forecasts for growth. Still, they caution that their brighter outlook remains under threat from Europe’s financial crisis.

“Things are looking better than we thought they would — not great, but better,” said David Wyss, former chief economist at Standard & Poor’s.

The most recent sign was Friday’s report by The Conference Board that its index of leading economic indicators surged 0.9 percent last month. It was the index’s best showing since February. And it was far faster than the increases of 0.1 percent in September and 0.3 percent in August.

The index is designed to predict economic activity. The October figure marked the sixth straight increase.

The jump reflected gains in nine of the index’s 10 components. Leading the way: a surge in permits for home construction; a narrower gap between short- and long-term interest rates that suggested less concern about inflation; a recovery in stock prices; and growth in the U.S. money supply.

A longer average workweek and fewer applications for unemployment benefits also contributed to the rise in the index.

All told, the components of the index signaled that the economy is steadily, if still slowly, strengthening.

Many economists said the October gain in the leading indicators offered further assurance that the economy is in no imminent danger of slipping back into a recession, so long as Europe doesn’t fall into a severe downturn.

“This was a very positive reading for the leading indica-tors,” said Mark Zandi, chief economist at Moody’s Analytics. “The economy seems to be holding its own.”

In the first six months of the year, the economy grew at an annual rate of just 0.9 percent. Growth expanded to a 2.5 percent rate in the July-September quarter.

Before this month, many economists had estimated that growth in the current October-December quarter would roughly match the 2.5 percent pace of the July-September period. But in recent days, based on the healthier economic news, some analysts have boosted their forecasts. Wyss said he expected the annual growth rate in the current quarter to amount to about 3 percent, up from his earlier expectation of 2.5 percent. Economists at JPMorgan Chase are also expecting a 3 percent growth rate.

Even so, an economy growing at a 3 percent rate would still fall shy of the 4 percent to 5 percent pace that economists say is needed to significantly reduce the unemployment rate, which remains stuck at 9 percent.

Make sure you know the real value of your home from reliable sources.  Do not rely only on website estimates because every home is unique.  Here is are the issues:

How to Figure the Fuzzy Math of Internet Home Values

B Y ALYSSA ABKOWITZ

WSJ SUNDAY SMARTMONEY PREVIEW

Jason Gonsalves worked hard to turn his 6,500-squarefoot stucco-and-stone home in the suburbs of Sacramento into the ultimate grown-up party pad, complete with game room, custom wine cellar and an infinity- edge pool overlooking Folsom Lake. When interest rates fell recently, Mr. Gonsalves, who runs a lobbying firm, looked into refinancing his $750,000 mortgage. That’s when he got startling news—the home had dropped more than $200,000 in value while he was renovating.

Or at least, that’s what one real-estate website told him. Another valued the house at only $640,500. And these online estimates left him all the more confused when a real-life appraiser, assessing the house for the refinancing loan, pinned its value at $1.5 million. “I have no idea how those numbers could be so different,” Mr. Gonsalves says.

For more on personal finance, see the December issue of SmartMoney,

on newsstands this week.

Right or wrong, they’re the numbers millions of consumers are clamoring for. After years of real-estate pros holding all the informational cards in the home-sale game, Web-driven companies like Zillow, Homes.com and Realtor.com are reshuffling the deck, giving home shoppers and owners estimates of what almost any home is worth. People have flocked to the data in startling numbers: Together, four of the biggest sites that offer homevalue estimates get 100 million visits a month, with web surfers using them to determine what to ask or bid for a home, or whether to refinance.

But for figures that can carry such weight, critics say, the estimates can be far rougher than most people realize. Valuations that are 20% or even 50% higher or lower than a property’s eventual sale price are not uncommon, as the sites themselves acknowledge. The estimates frequently change, too—sometimes by hundreds of thousands of dollars—as sites plug new data into their algorithms.

All of the competitors make it clear their numbers are guesstimates, not gospel. “A Trulia estimate is just that—an estimate,” says a disclaimer on that site’s new home-value tool. Zillow goes a step further, publishing precise numbers about how imprecise its estimates can be. And every major site urges home-price hunters to consult appraisers or real-estate agents to refine their results.

But despite the disclaimers, homeowners and real-estate agents say, many Web surfers put enough faith in the estimates to sway the way they shop and sell.

After Frank and Sue Parks put their manor-style house in Louisville, Ky., on the market, they watched as Zillow put a $331,000 value on the dwelling in May; by July it had climbed to $1.5 million. (Zillow says the lower estimate reflected errors in its statistical model.) The couple got potential buyer referrals from the site, but they fended off a stream of lowball offers before they sold this fall. Mrs. Parks says the estimate roller coaster “really affected our ability to move the place.”

i i i

Determining a home’s value has traditionally been the job of an appraiser, who gathers data on recently sold homes and compares them with the “subject property” to arrive at an estimate.

In the late 1980s, economists started developing automated valuation models, or AVMs, computer models that could analyze data about comparable sales, square footage, number of bedrooms and the like, in a matter of seconds. For years, these tools were mostly reserved for in-house analysts at lending banks.

It wasn’t until 2006 that Zillow took them to the masses, with its Zestimates, which now offer values for more than 100 million homes based on the company’s own algorithms. “Humans don’t make these decisions,” says Stan Humphries, chief economist at Zillow.

Numbers like these have become weapons in the arsenal of consumers like Simms Jenkins, an Atlanta marketing executive, who has recently relied on online estimates to help him both buy and sell homes. “I can’t imagine 25 years ago, when people would just go out and spend their entire Saturday looking at homes,” he says. “You don’t have to do that now.”

But appraisers and real-estate consultants say the online models can veer off target with alarming frequency. Most data for the models come from two sources: records from tax assessors and listing data for recent sales. Collection is a challenge, however, because not every county tracks properties the same way—some calculate home size by number of bedrooms, others by overall square footage. And automated models aren’t designed to account for the unique construction details that often make or break a deal, or for intangible factors like a neighborhood’s gentrification. “You cannot use a computer model in certain

Scott Pollack

areas and expect the value to come out right,” says John May, the former assessor of Jefferson County, Ky., which includes the state’s largest city, Louisville.

For all these reasons, models that banks use often add a “confidence score” to their estimates. Consumer-oriented sites, meanwhile, rely on disclaimers, some of which are eye-opening. Zillow surfers who read the “About Zestimates” page find out that the site’s overall error rate—the amount its estimates vary from a homes’ actual value—is 8.5%, and that about one-fourth of the estimates are at least 20% off the eventual sale price. In some places, the numbers are far more dramatic: In Hamilton County, Ohio, which includes Cincinnati, it’s 82%.

The sites argue that, over time, edits and corrections will help them perfect their numbers— with many fixes coming from their customers.

On Homes.com, anyone who knows a homeowner’s surname and the year the home was last purchased, can edit the details of a property listing in ways that can eventually change the estimated value.

Zillow has accepted revisions on 25 million homes— perhaps the strongest testament to how seriously consumers take its estimates. Today, the site says its figures are accurate enough to give consumers a good sense of any home’s value. In the meantime, says Mr. Humphries, its economist, “We’re always tweaking the algorithm or building a new one.”

Email: editors@smartmoney.com

Good new for some who have loans they are struggling with according to the San Diego Union.

REAL ESTATE

Mortgage aid open to more Calif. borrowers

A state-run program that helps homeowners struggling to pay their mortgages now has broader eligibility guidelines, opening up help to borrowers who did “cashout” refinances and own multiple properties.

The program, called Keep Your Home California, is run by the California Housing Finance Agency. It has helped close to 8,000 low- and moderate-income households that are behind on loan payments or are close to default, the agency’s leaders said.

Keep Your Home California’s services include mortgage help for the unemployed, mortgage aid for homeowners with other documented financial hardships, relocation help for people going through a short sale or deed-in-lieu of foreclosure, and reduction of principal.

The broadening, announced Monday, includes: •Allowing homeowners who completed “cash-out” mortgage refinancing to take part.

• Enabling borrowers who own more than one property to participate. Program officials said this will be particularly helpful to those who co-signed on properties for family members.

• Offering mortgage aid to unemployed borrowers for nine months, instead of six. The maximum payment is $3,000 a month.

• Reinstating up to $20,000 in past-due mortgage payments instead of the previous $15,000 cap.

To qualify, your mortgage servicer must take part in the Keep Your Home California program.

LILY LEUNG • U-T
 

Know why it is a great time to buy or decide to rent.  Importantly never forget the value of location, location, location.  Timing the price market may mean losing out on that special home for you.  Otherwise, know why you are renting and commit to it with confidence.  Your home is important.  Good thoughts by the San Diego Union Tribune:

Rent without regret

By Neil Fjellestad and Chris DeMarco

Fjellestad, Barrett & Shor t

Some say that local real estate prices have hit bottom, others argue that values will drop again significantly by second quarter 2012. Where there is agreement is that a generally flat condition will become the new normal. If you’re ready and able to buy, take your time and shop your options. Pick a neighborhood and a home that will suit your needs for at least five years and preferably six to 10.

Negotiate a purchase price that’s competitive, but don’t obsess about getting the best deal.

Concentrate more on getting the best fixed-rate mortgage, which will require a strong down payment and excellent credit. Don’t get discouraged if your offer is one of many. Also be aware that your offer might be beat out by an “all cash” buyer who can close immediately.

Rather, pre-qualify for your mortgage to be competitive.

Fully inspect the condition of the property, and budget for necessary improvements. Keep your monthly obligations to about onethird of your income and keep at least three months of mortgage payments in reserve.

For some, financial and/or lifestyle requirements might best be met by renting. If so, rent without regret that you’re missing out on a once in-a-lifetime opportunity to buy. Instead, focus on making the next several years as affordable and enjoyable as possible.

Vacancies are the most costly operating expense for rental owners, so qualified applications are not taken for granted. Negotiate a competitive rent based on a longterm lease. Avoid late payments (online rent payment is ideal), look for ways to cut expenses, and build your savings. Consider lifestyle changes that will give you a sense of financial control and responsibility.
 

The government has new guidelines you need to know about as reported in the San Diego Union.  Here is how you find out if you are able to be helped.

FIND OUT IF YOU’RE ELIGIBLE FOR HARP

Eligibility requirements

• Your home loan must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
• The loan-to-value ratio must be more than 80 percent.
• Homeowners must be current on mortgage payments in the past six months. They can’t have more than one late payment in the past year.
• Borrowers must be able to afford the refinanced mortgage payment.
• Proposed changes would:
• Cancel certain risk-based fees, leading to lower closing costs for homeowners who refinance into loans with shorter terms.
• Get rid of the 125 percent loanto- value cap.
• Eliminate the need for banks to pay for “representations and warranties,” which are in place in case borrowers default on their mortgages. This change is meant to make lenders feel more confident about underwriting the refinanced loans.
• Eliminate the need for new appraisals when an automated estimate is available.
• Revise HARP’s expiration date to Dec. 31, 2013.
• Other things to know
• It’s important to keep paying your mortgage.
• Lenders are not required to take part in the revamped program.
• So far, major banks including Bank of America and Wells Fargo say they’ll participate. However, implementation may vary.
• Assuming you qualify for the program, consider how long you plan to live in your home and when you plan to retire. Those factors could impact what’s financially best, said Michael Zau, mortgage banker at W.J. Bradley Mortgage in Rancho Bernardo.

Eligibility requirements

1. Find out if Freddie Mac or Fannie Mae owns the note to your home. The note owner is different from the servicer, the company to which you send you mortgage payments every month. For example, Freddie Mac may be the note owner, but your servicer may be Bank of America.
2. How do you know if Freddie or Fannie owns your note? Check their respective websites and fill in the designated blanks to get a confirmation. The sites are http://fanniemae.com/loanlookup and https://ww3.freddiemac.com/corporate
3. Don’t have a computer? Yo u can call (800) 7FANNIE or (800) FREDDIE. Hours for both hot lines are 5 a.m. to 5 p.m. Pacific time.
4. Be sure to enter your address exactly as it appears on your original loan documents. Fo r example, don’t enter “Main Street” if your records show “Main St.” “It’s that sensitive,” said Jonathan Jerotz, vice president of mortgage lending for Guaranteed Rate in San Diego.
5. If the note is owned by Fannie Mae, the result will say “Match Found.”
6. For Freddie Mac, the result will say “YES, Freddie Mac is the owner.”
7. The program will take effect as early as Dec. 1.

Appraisers are now given the tools to appraise the value of your energy efficient investments in your home.  Without these tools and procedures in place the value of solar panels and other improvements on homes were too often overlooked by appraisers.

ADDENDUM RAISES GREEN PROFILE ON APPRAISALS

WASHINGTON

Here’s some good news for homeowners who’ve gone green and installed energy-saving features but haven’t been sure whether appraisers will credit them with higher valuations: Thanks to a new industry-issued appraisal addendum, the odds have improved that they’ll get the fairer market value they’re due.

The Appraisal Institute, the country’s largest and most influential association in its field, published the long-awaited addendum Sept. 29. It’s designed to be attached to any standard appraisal report covering a property with significant green features. Owners, sellers, buyers, refinancers and realty agents don’t have to wait for an appraiser to use it. They can download it at no cost and ask that it be made part of the appraisal submitted to the lender. The new addendum won’t guarantee you that the appraiser will raise your property value

SEE HARNEY • C4

Homes in San Diego have just become more affordable.  Mortgage interest rates have dropped to the lowest recorded.  If you are one of those who have been waiting for the bottom.  This is it!  Of course rates may go down a smidge more but they are known to escalate overnight.  So, if you are wondering if you should buy now then it is in your best interest to find a lender and Realtor and discover what your options are.  Here is the encouraging news from the San Diego Union today.

AV E R A G E MORTGAGE RATES ARE AT LOWEST POINT EVER

Drop comes after Treasurys’ sharp fall, Bernanke testimony

LILY LEUNG • U-T

The average 30-year fixed mortgage has fallen this week to below 4 percent for the first time in history, said Freddie Mac’s weekly home-loan report Thursday. The rate for a 15-year fixed rate loan also hit a record low.

This week’s historically low rates followed “a sharp drop in 10-year Treasurys early in the week as concerns over a global recession grew,” said Frank Nothaft, vice president and chief economist of Freddie Mac.

The low rates also come on the heels of Federal Reserve Chairman Ben Bernanke’s statement to Congress’ Joint Economic Committee this week that the economic recovery is “faltering,” Nothaft said.

The breakdown: • The30-yearfixedratethis week is 3.94 percent, down from 4.01 percent last week, the previous low. A year ago, it was 4.27 percent.

•The 15-year fixed this week dipped to 3.26 percent, also a record, from 3.28 percent. It’s a popular refinancing option. A year ago, it was 3.72 percent.

Despite such low rates, for many San Diegans, refinancing might be impossible because they are upside down on their mortgages, their credit scores are too low, or both.

La Jolla-based real estate tracker DataQuick estimates that 30.4 percent of homes in San Diego County that have a mortgage appear to be underwater.

Zillow, another housing monitor, said about one in three people in the U.S. recently surveyed are highly unlikely to qualify for a home loan because their credit scores are too low.

Super-low rates haven’t been enough to lift the housing market, which has struggled in recent years with anemic sales and declining home prices.

Rates have been below 5 percent for all but two weeks in the past year. Yet sales of previously occupied homes this year are on track to be among the worst in 14 years. And homeownership has dropped over the past decade by the greatest amount since the Great Depression, according to 2010 census data released Thursday.

Mortgage rates have tumbled because they tend to track the yield on the 10year Treasury note. The yield has fallen in recent weeks, largely because investors are worried about the U.S. economy and the debt crisis in Europe. So they have shifted their money out of stocks and into the relative safety of Treasurys.

And they could fall even further now that the Federal Reserve has started shuffling its investment portfolio to try to lower long-term rates.

The Associated Press contributed to this report.

lily.leung@uniontrib.com

(619) 293-1719 Twitter: lilyshumleung  
 

Equity in real estate in San Diego continues to be the biggest portion of net worth for most of us.  Our homes, purchased when we were raising our children have increased in value and the loans have been paid down while tax benefits of home ownership have reduced our cost of living, continue to brighten our lives in our older years.  This article tells more of the story:

Among owners who have mortgages, according to CoreLogic, 48.5 percent of them have at least 25 percent equity stakes in their properties. Roughly a quarter of owners with mortgages — 24.6 percent — have more than 50 percent equity.

At the other end of the spectrum, 22.5 percent of owners are in negative equity positions, burdened with houses worth less than their mortgage balances.

Where do owners have the highest equity holdings? Two states with very different economic profiles top the list — New York, where 48.8 percent of owners have greater than 50 percent equity positions, and Hawaii (43.7 percent). Both states also have exceptionally low incidences of negative equity. Connecticut, Massachusetts, Pennsylvania, the District of Columbia and New Jersey all have equity positions far above the national average.

Sam Khater, senior economist for CoreLogic, says that states with high equity levels tend to be relatively affluent — or at least have sizable pockets of affluence — plus relatively low levels of mobility and in-migration. They also did not experience rampant construction booms on suburban land tracts during the years 2003-07, or heavy use of zany financing. They saw appreciation in real estate values, but not double digits a month as occurred in some parts of the country.

One state — California — exhibits not only the stable, relatively affluent, low-construction characteristics of high-equity areas but also has wide swaths that saw the reverse.

“It’s kind of a barbell state,” said Khater, with above-average numbers of owners holding 50 percent equity or more — typically in or near the coastal cities — combined with large numbers of owners in deep negative equity, clustered in the interior counties and the Central Valley. While 26 percent of California owners have 50 percent or greater equity stakes — surprisingly above the national average — nearly one out of five owes 20 percent to 50 percent or more on their mortgages than their home value.

The states where people tend to have the least-favorable equity positions aren’t hard to guess. Just 7.5 percent of Nevada owners have equity of 50 percent or greater. At the other extreme, 30 percent of them have mortgage debt that is 50 percent or more than their property values. Almost 58 percent of all Nevada owners are in negative equity positions, according to the CoreLogic data.

Arizona has the secondworst situation on negative equity, with 49 percent of owners underwater, followed by Florida with 45 percent. However, unlike Nevada, both Florida and Arizona have higher numbers of owners who still have solid equity holdings. In Florida, more than one of every six owners has 50 percent or higher equity. In Arizona one of every eight does.

What to make of all these numbers? Equity holdings declined virtually everywhere during the real estate and mortgage busts, but $6 trillion-plus of it is still out there. Most owners are still faring relatively well in terms of home equity — they’ve got 25 percent stakes or nearly that much. You just don’t hear about it.

Kenneth Harney is a columnist for The Washington Post Writers Group. Send email to kenharney@earthlink.net.
>

WHAT GETS US INTO TROUBLE IS NOT WHAT WE DON'T KNOW..

IT IS WHAT WE KNOW FOR SURE THAT JUST AIN'T SO!!

------Mark Twain    

Buyers and Sellers in San Diego are caught in a the mindset that they know real estate is a bad investment at this time.  The Facts:

1. History of prices and interest rates show that this is the best time in decades to buy and it is the best time to own real estate.   The charts for both speak for themselves.  Look at the charts.
2. A close analysis of the actual cost of renting vs buying today after taxes and all considerations show owning is less expensive.  Rents will go up as the economy strengthens.  If you own your own home you can make the changes to that home to make it more comfortable for you.  Look at the previous posts below.

1. The fact it is more expensive to buy the land and build a new home than it is to buy an existing home.  Builders have applied for fewer permits to build than they have for decades.  The cost of building materials has gone up and will in the future.
2. Answer this question:  Is San Diego still one of the most desireable places to live on the  planet?  The whole world is drawn to the greater San Diego region.  The supply of homes is diminishing as the population increases from that demand which is the perfect formula for increase prices.  Over time your home will build the equity you will need for retirement.  Historically homes have doubled in value every 10 to 12 years.  An equity no renter will ever have.     M             That

These are only 4 facts to look at but should be taken very seriously by those who want to buy eventually.  It is possible the news has convinced you that now is not a good time to buy.  In my mind it is the best we have had for decades as long as you can make your payments and plan on living here for the long term.  I recommend you talk to your real estate expert for more information and to discover if now is the time to buy for you.

Can you lower your interest rate and payments or not?  Refinance?   If you are able to keep your home even though your mortgage is higher than the current value this article in the San Diego Union may help.  To help you with those payments we offer one more thought.  When you have more than one mortgage you may want to refinance the first mortgage to bring down your interest rate and payment.  Your ability to do that is based on the loan to value ratio for that loan by itself.  Most important at this time is to consult with your loan professional to determine your options.

SHOULD I, CAN I REFI

With the right credit scores and other numbers, refinancing themortgage can be a wisemove

LILY LEUNG • U-T
Dan Fox and his wife, Mildred, have refinanced their mortgage not once, not twice or even three times, but four times since they bought their home in North Park three years ago. The financial decision was an obvious one because Dan Fox’s pay was cut and mortgage rates, nowat all-time lows, kept tumbling.

For the past two years, U.S. mortgage rates have steadily dropped to the 3 percent range for a 15-year fixed loan and 4 percent range for a 30-year fixed, recent FreddieMac figures show. Those rates could keep falling, in light of the Federal Reserve’s decision last week to reinvest in longer-term bonds to push down interest rates on mortgages and business loans.

Low rates have lured a small yet determined slice of qualified borrowerswhowant to reduce their monthly payments, save for the future, or in the case of the Foxes, both.

“Mortgage rates have dropped to a point where refinancing can make sense,” said Greg McBride, senior financial analyst for finance site bankrate.com.

What makes sense varies by borrower, motive and economic situation. If the math continues to make sense over time, some homeowners refinance again and again, even if the savings appear minuscule.

Still, for many San Diegans, refinancing could be impossible because they are severely upside down on their mortgage                 their credit scores are too low, or both.

Real estate tracker DataQuick estimates 30.4 percent of homes in San Diego County that have a mortgage appear to be underwater. Zillow, another housing monitor, said about one in three people recently surveyed are highly unlikely to qualify for a home loan because their credit scores are too low.

“We still have a weak labor market,” said Mark Riedy, executive director of the real estate center at the University of San Diego. “I don’t see a flurry of refinancing because those who can’t (refinance) can’t, and thosewho can, they’re refinancing over and over again.”

What drives someone to refinance?

Refinancing and other non-purchase loan activity in San Diego County peaked at 32,522 recordings in July 2003, roughly two years before home prices hit their high point, according to DataQuick figures that date to January 1990.

That activity, which includes refinancing, homeequity loans and home-equity lines of credit, fell 94 percent to 1,817 recordings in November 2008, almost exactly when county home values hit their trough.

Since then, refinancing has ebbed and flowed but remains far below its peak because lenders have tightened their guidelines and borrowers have negative equity.

But for those who qualify, there are two major reasons consumers would want to refinance, said McBride, of bankrate.com.

The first is to secure a lower monthly payment. The most common scenario is someone refinancing a 30year fixed loan to another 30-year fixed loan but with a lower interest rate.

The Foxes, of North Park, are a prime example. Their serial refinancing helped them cut their mortgage rate from 5.99 percent to 4.37 percent, translating over time to roughly $425 in monthly savings. And unlike many pre-recession borrowers who tapped their home equity lines to pay for wishlist items or home remodeling, the Foxes don’t plan to touch what’s left over for a while.

“We won’t be able to retire for a long time,” said Dan Fox, 43. “I’m a schoolteacher … eighth-grade history, so we’re trying to save money for retirement.”

This scenario makes sense if your income has been reduced, you are underemployed or you’re at risk of losing your job.

The second reason to refinance is to pay off your mortgage faster. Consumers in this case usually go from a 30-year fixed mortgage to a 15-year fixed. Monthly payments will likely increase, but the mortgage is paid off in half the time.

When this makes sense: if the homeowner has been in the home for six or seven years and/or looking to pay off the mortgage quicker. Those preparing for retirement or anyone who expects to be on a fixed income in the near future also could benefit from this loan type.

Who qualifies and what do they pay?

Lenders nowadays are seeking “top-notch” candidates, “the cream of the crop,” said Belinda Austin, a loan officer at Ranch & Coast Mortgage Group in Solana Beach.

What does that look like?

An ideal candidate has 20 percent home equity, a credit score of 740 or more, a few months of cash reserves and documentation of steady income in one field. The last part, mortgage insiders said, could be a challenge for contract workers or people who have switched to different lines of work during the past two years.

Still, it is possible to secure financing if you don’t fit the ideal profile, because it’s “risk-based pricing,” said Fred Arnold, a mortgage banker in Santa Clarita and past president of the California Association of Mortgage Professionals. In other words, you may have to pay more than the ideal borrower.

Costs, just like borrower types, vary. In recent years, “no-cost” refinancing has been most popular but the name could be deceiving.

“‘No cost’ refinancing isn’t free,” McBride said.

You may not pay any outof- pocket fees, but fees can be rolled into the loan package, typically resulting in a higher interest rate or higher loan balance, he said.

Fees cover lender services, appraisal, title, escrow, recording and other items.

Borrowers can reduce their interest rate by paying for points upfront. One point typically equals 1 percent of the loan’s value, or $1,000 for each $100,000 borrowed.

So which route is better?

Again, that depends.

If you choose to fork over the money up front to snag the lower interest rate, you need to calculate how long it will take to break even.

Here’s a hypothetical example drawn up by Chad Baker, a loan officer at Prime Lending, which has offices in the UTC area and Mission Valley: If you take out a $320,000 loan and pay $4,000 in closing costs — including points and various fees — you can secure a rate of 4.25 percent, making your monthly payment $1,574.

Using the same loan amount but with no closing fees and a higher rate of 4.5 percent, the consumer will pay $1,621 a month, or an additional $47 a month. Baker calculated it would take roughly 84 months, or seven years, to recoup that cost.

Kurt Branstetter, a loan officer with W.J. Bradley Mortgage in San Diego, said points could be a prudent choice if they’re included in a company-relocation deal, or if a homebuilder is willing to pay for them at closing.

Can underwater homeowners refinance?

Borrowers who are slightly underwater on their mortgage could find help fromthe federal government’s Home Affordable Refinance Program, or HARP. The process requires homeowners to have a loan-to-value of no more than 125 percent. These programs have caught flak for years because of their lower-than expected success.

5 Keys To Buying A Home In San Diego  

1) The best time to buy is when others are not.  

2) Real estate has up and down cycles but always tend up over time.   If the home you want to buy is available in the right location, at a price you can afford over time, and we are in a down market, why not buy? 

3) We know interest rates are low at this time but they can change quickly. 

4) Because most families move during summer break from school schedules, homes on the market during this time of year have sellers with higher motivation.

5) Fear stops many from buying.  Facts overcome fear.  Find out the facts from your trusted real estate advisor.

1)   Are you thinking of real estate as a full time career?  How many hours are you going to devote to it?   Where will you work?  Granted, many agents become proficient and after that can work in a home environment but most need the stimulation, educational, and support benefits of an office.

2)  Are you willing to take the time to learn the laws, marketing, appraising, financing, managing, contracting, systems, and procedures of real estate?  And are you willing to keep up with all of these during your whole career? 

3)  Are you willing to be a good listener and problem solver while people you are trying to serve are emotionally and often fearfully involved in the purchase or sale of their homes.  Are you willing and able to be the "calm in the middle of the storm"?  Remember emotions run high when people are forced by circumstances to move from a home they have lived in for years and friends and neighbors who may have been their main support through lifes trials.  That is the case for both the buyers and the sellers. 

4)  Are you willing to sacrifice your personal needs to the needs of your clients?  This is a sales job but, contrary to popular opinion, the best sales people in any business always give their client what they want.   Specifically, are you willing to focus on doing what is best for your client in all events?  If so, you will enjoy repeat and referral busines from happy clients.  That is the foundation of all successful businesses.

5)  Do you have the financial resources to devote enough time to the career to learn and develope your business?  I personally was so committed to a real estate career that i worked two full time jobs to make that happen.  It was a huge sacrifice for my family but that was the only way I could start.  That was 1975 and I am still enjoying this wonderful career!   You will not make it without the ability to pay your mortgage and expenses while just starting out in real estate. 

6)  Are you committed to absolutely making real estate your career of choice for the long haul??  If not, you will be one of many who "tried" and failed at real estate.  It is a job.  It takes focus.  It is not easy.  It is frustrating.  It is time consuming.  It is dissapointing.  It is not easy at the same time it is easy.  It is liberating.  It is fun.  It is absolutely worth it!!!!  It is all of the above and more.  To be successful you MUST BE COMMITTED TO BEING AN EXPERT IN REAL ESTATE!  No exceptions.

7)  Are you willing to "prospect" every day to find people you can help selling or buying real estate?  Because it is a "sales job"  you must find buyers or sellers or you will not have any income.  This will make the deciding difference in your success.  It is a sacrifice of time and ego.  You will risk rejection at every turn.  But your steadfastness and dedication will bring the joy of satisfied clients and repeat and referral business.  Sales is really a numbers game.  It is about asking enough times to find the people who are thinking of moving at just the moment you find them.  People move every 6 to 8 years.  Therefore an Expert real estate professional will always be able to help someone buy, sell, finance, or manage real estate.  It is a wonderful career!!

This major report on San Diego shows measureable improvements in our economy.

ROGER SHOWLEY • U-T

For all the doom and gloom in many economic forecasts, Beacon Economics analysts Tuesday painted a relatively rosy outlook for San Diego County.

“The economic outlook for San Diego has turned the corner and is on the path to grow again,” economist Brad Kemp said at Beacon’s third annual regional forecast breakfast. He and his colleague, economist Christopher Thornberg, said the chance of the national, state or local economy falling into recession again is remote.

Beacon is a Los Angeles-based economic research, forecast and data service firm, led by Thornberg, who chairs the state controller’s board of economic advisers.

Speaking to several hundred people at the Hilton Bayside Hotel, Kemp said that

SEE REPORT • C4

ROGER SHOWLEY • U-T

For all the doom and gloom in many economic forecasts, Beacon Economics analysts Tuesday painted a relatively rosy outlook for San Diego County.

“The economic outlook for San Diego has turned the corner and is on the path to grow again,” economist Brad Kemp said at Beacon’s third annual regional forecast breakfast. He and his colleague, economist Christopher Thornberg, said the chance of the national, state or local economy falling into recession again is remote.

Beacon is a Los Angeles-based economic research, forecast and data service firm, led by Thornberg, who chairs the state controller’s board of economic advisers.

Speaking to several hundred people at the Hilton Bayside Hotel, Kemp said that

SEE REPORT • C4

Another indication buyers of homes are in a once in a lifetime position in San Diego. 

This analysis by a respected Real Estate Professional in the San Diego Union today is another reason for homebuyers to join those now purchasing real estate.  He points out that your real estate professional is your best source for purchasing a home today.  He or she can give you the information you need when picking the right home for you.

GUEST COLUMN

The view from the saddle

“Mortgage Rates Lowest in Years!”“Foreclosures on the Rise!”“Housing Market Stabilizing!”“Short Sales Decline!”And of course,“Brad Pitt’s Bachelor Pad Lists for $13.75 Million!”

Maybe it’s time for some good, old-fashioned horse sense.What do headlines like these really mean to the realistic buyer or seller in today’s Southern California real estate market?

They’re reminders that it took us a while to get into this situation, and it’s going to take us a while to get out of it.

The seismic upheaval we’re navigating through has made us less frivolous,more wary ...but it hasn’t much affected our deepseated desire to buy a home,still for many Americans one of the proudest,most fulfilling things we can do.So which way do we ride?

As the nation’s real estate market continues to regain its balance, it’s good to remember our Southern California residential industry has a well-documented record of market peaks and troughs,and it’s probably naive to think that’s ever going to change.So as a potential buyer, the first thing you need to do is determine if and when you’re comfortable entering into a market where,for an unknown window of opportunity,with a little patience and the guidance of a knowledgeable real estate professional,your dollars can bring two to three times the home they might have bought 5-10 years ago.

Interest rates right now are decidedly low.Might they go lower? Sure.Higher?

Absolutely.Will things change? You bet.

Might that stunning mid-century or beach town condo come down another $25,000?

Possibly.So do you wait for some secret handshake,some special sign? Or do you take that first exhilarating step into today’s market and begin your search for an affordable home that can meet your needs and fulfill some of your dreams? If you answer“ door number two,”you’re not alone.

Our current real estate market is driven by buyers like you who sense that we’re in a perfect storm: a fragile convergence of low interest rates,affordable properties,great inventory,and market-savvy sellers who are pricing exceptional homes with realistic numbers for today’s quite serious shopper.

Our Southern California real estate market is a veritable feast of opportunities. And more of today’s well-informed buyers are coming to the table.

Bob Deville

CO-OWNER WINDERMERE REAL ESTATE SOCAL  

 

Realty Experts is looking for only those special people who have a passionate desire to be a successful  Real Estate Agent in the North San Diego County area.  Honesty, highest ethics, and commitment to the highest level of service are mandatory. We train you in all aspects of Real Estate.  Please call Joe Cobb at 858 967-8801

This well written article in the San Diego Union compares the true cost of renting verses buying in todays market.  It gives you three comparisons that are compelling enough.  I will add a fourth;  It is a pride of being able to live somewhere called home and change and improve that home without the approval of a landlord.  That "nesting" ability comes without a landlord who can ask you to leave or pay more rent.  It is called "pride of ownership"  In my nearly 70 years i have seen the wonderful benefits of home ownership for my own family and friends and hope this article helps you see the possibilities for your family.  Joe Cobb

A good tenant is sometimes hard to find.  Advertising and qualifying is key.  You will find one of your best ways is to put a for rent sign on the property.  It is important to have that sign up as soon as you know your existing tenant is moving.  The phone number on the sign should be your personal cell phone.  One of the most effective places to advertise is with Craigs list. 

Once you have found someone who wants to rent it is important to have them fill out an application and an authorization to run a credit report and background investigation.  Here is what to look for on the application:  A longer term employment history with his or her employer or in the same field. Enough varified income to pay the rent.  Always call their past landlords to make sure they were good tenants. 

Importantly, a deposit which should be the sum of at least one month rent plus the realistic cost of cleaning the home. 

It is best to have a one year lease that ends in June or July.

Finally, the home should show very well and during the lease when things come up to be fixed you need to be very quick to get those things done.  A happy tenant is best for problem free tenancy.

Renters Can Buy a Nice Home Today!

This fantastic FHA 203k loan gives you the money to fix up your new home even above the price you paid.  This article is a well written description of just one of the tools you can use to afford that home you otherwise cannot buy. 

GUEST COLUMN From the San Diego Union Tribune

The 203k mortgage

Real estate consumers today can find ample value in distressed homes — properties that are under a foreclosure order or up for short sale.In many cases,however,“ distressed” speaks more for the condition of the homes than their recent financial histories, as they’ve sat empty for extended periods and have been subject to vandalism and theft.

Those considering homes in need of repair and renovation should consider a 203k mortgage,which enables homebuyers to finance both the acquisition and rehabilitation of the property with just one loan.

“FHA 203k purchase loans are the perfect financing vehicle for homeowners seeking the value proposition offered by REO homes,”said David Wind,president and board chairman of White Plains, N.Y.-based Guaranteed Home Mortgage Company, in a company statement this June. “A homebuyer’s ‘perfect’ home can be purchased in less than perfect condition with a single-close loan product that allows repairs and remodeling.”

There are two types of 203k loans: the 203k streamline and the full 203k. The 203k streamline is the most popular among homebuyers and lenders.

“The maximum allowable in repairs is $35,000 under the 203k streamline and it does not allow any structural repairs to be done to the home,unless the repairs are a result of an unforeseen circumstance,” explained David Krushinsky, a certified mortgage planning specialist for Mesa, Arizona- based AmeriFirst Financial Inc. “The full 203k allows structural repairs and will allow the buyer to exceed the $35,000 in home repairs.Both loans allow up to $1,500 in swimming pool repairs.”

Contractors chosen to perform repairs must be licensed,bonded and insured,and they usually must provide the lender with a resume and two client- reference letters.

“After the close of escrow is when all the rehabilitation work begins,”said Krushinsky.“Funds usually aren’t released immediately so it’s important for your contractor to start work in a timely manner.Typically,if they’ve been in business,they have existing relationships with vendors so they can order materials and begin work.If not,the project may take longer than anticipated.”

Since the 203k mortgage is based on the home’s potential value after repairs — not its existing value — you can be approved for a higher loan amount.The mortgages also carry long-term-fixed rates,are insured as soon as they fund, and include escrow accounts for the scheduled repairs.

Loan amounts are capped according to local FHA limits.Only owner-occupied properties of one to four units qualify for 203k mortgage financing.

Homes also must be at least one year old to qualify.
 

Our local San Diego homes are showing strength of our region:

CARMEL VALLEY IS HOUSING HOT SPOT

Coastal community drawing high-paid tech workers as well as move-up buyers

LILY LEUNG • U-T

San Diego software engineer Paul Xu and his wife, Yaling, are expecting in December, so they’re scouting for something newer and bigger than their circa-1990s home in Mira Mesa to fit a growing family and Xu’s parents.

“We need more bedrooms,” said Xu, 36, as he walked through model homes starting in the $600,000s on a recent Sunday with his father, Min, and two family friends. “We’re also looking for good school districts ... and good neighbors.”

Thefirst area thatcameto Xu’s mind was Carmel Valley, a North County coastal community that draws both high-paid tech workers and move-up buyers, especially families, with its community playgrounds, block parties and environmentally friendly homes. It’s also among the few areas in San Diego County where housing prices have risen, remained relatively stable or declined slightly this year, shows a Union-Tribune analysis of sales and prices that compares half-year numbers in 2011, from January to June, to the same period in 2010.

Looking at the whole county and all housing types, sales fell 8.4 percent, from 19,099 to 17,490, while the median price dipped in 63 of 93 ZIP codes, with regional drops from 1.8 to 7.7 percent. One thing to keep in mind: 2011’s first half is being pitted against the first half of 2010, when homebuyer tax credits drove sales.

Still, among the areas that bucked the trend of declines during this year’s first half were north coastal areas such as Carmel Valley, where the median price for a single family home rose to $950,000, or 5.9 percent from 2010’s first half. The area’s new-home sales also increased, from 76 to 86, or 13.2 percent.

Other coastal areas where single-family resales, the bulk of total transactions, increased included southwest Carlsbad and Del Mar.

Hot sale zones also were detected in the East County submarket. There, sales increased as first-time buyers and investors were lured to the area’s lower-priced distressed properties. Price changes were mixed, depending on the area and housing type.

A standout was Jamul, where the median price for a single-family resale home shot up 15.2 percent, rising from $375,000 last year to $432,000 this year, based on about the same number of sales during both time periods. Certain areas of El Cajon, specifically 92019 and 92120, also saw increases or stabilization in single-family resale prices. In some neighborhoods, such as Spring Valley and Santee, single-family home resales increased but sale prices were down, 8.6 percent and 10.6 percent respectively — a likely indicator of distressed sales.

Dave Zimkin, a real estate broker in La Mesa, said sales in East County have been “slow and steady” as a large number of transactions in the area are short sales, which take longer to vet and close.

What drew 26-year-old Shelby Williams and her husband, Garrett, to buy a home in Los Coches, an area near Lakeside?

“We were in Mission Valley when we were getting married,” said Williams, a corporate event planner. “Now, we’re wanting to start a family and be on a bit more land ... We’d sure love to be in Del Mar and Carmel Mountain, but that was tough to do even with two incomes, so East County met all our criteria.”

It was also the right price. They paid $325,000 for their 1,500-square-foot home, on 6,000 square feet of land.

C3 • A look at the local housing market by subregions for the first half of 2011. 
 

Comment:

The following article is addressing California wide housing and includes  good news for San Diego home recovery.

NEW HOUSING CONSTRUCTION SLIPPING

Projection for state shows bare increase over 2010’s low levels

ROGER SHOWLEY • U-T

A hoped-for rise in home building is fading, according to the Construction Industry Research Board. The July statewide projection for the year shows only 46,700 units approved by local agencies, less than 2,000 higher than the 2010 level. The total in 2009, 36,421, was the lowest one-year total for building permits in the last 60 years.

The July count presages the rest of the year, and it was driven down further by developers who obtained more permits than usual because they faced a July 1 deadline to comply with new building codes, the Burbankbased research board said.

However, for San Diego County, the total permitted units last month was 497, up 61.4 percent from June’s 308 and more than double July 2010’s 240. The difference from June was a boost in apartments and from July 2010, a jump in single-family homes.

Year-to-date, the total number of units approved was 3,398, up 42.2 percent from the same period last year. Statewide, the seven-month total was down 1.7 percent.

For comparison’s sake, San Diego’s peak building year saw 44,315 permitted dwelling units in 1986. The low was 2,990 in 2009. Peter Dennehy, senior vice president at John Burns Real Estate Consulting, said San Diego, as well as Orange and Los Angeles counties and the San

SEE HOUSING • C2

Article Continued Below

See HOUSING on Page C02

 

FORECLOSURE FILINGS IN SAN DIEGO DROP IN JULY

LILY LEUNG • U-T

Foreclosure filings and mortgage defaults in San Diego County fell in July, continuing an erratic pattern of distress, Monday’s DataQuick report showed.

Last month, the county posted 1,274 notices of defaults, down 5.8 percent from June and down 23.4 percent from a year ago.

Those notices mark the first step in the foreclosure process. They peaked at 3,832 in March 2009 and have gone through unpredictable fluctuations for years.

DataQuick numbers show 798 county homes were foreclosed on in July, down 15.9 percent from June and down 10.2 percent yearover- year. They peaked at 2,004 in July 2008.

The La Jolla company’s data are based on public records for single-family homes and condos.

lily.leung@uniontrib.com  
 

Continue to read on here: San Diego Union

NEW YEAR BRINGS CHANGE FOR SOME LOCAL SCHOOLS

Campuses will get new buildings and amenities

Some students have already returned to school and others will start this week or within a week. Many North County school districts are undergoing changes during the new academic year. Here’s a rundown from some of the larger districts in the area:

Carlsbad Unified

Carlsbad High School students will hit the books in fresh classrooms when the campus opens its new classroom complex in December. The school’s wrestling team will also have a new home in November when it moves into the new wrestling building that is half finished.

Other districtwide additions include a new food service sales system set to go live in November, and new fencing at Buena Vista, Kelly, Magnolia, Jefferson, Pacific Rim, and Calavera elementary schools, and Miccle and Aviara Oaks middle schools. Carlsbad Unified serves more than 10,700 students at 14 campuses.

HAILEY PERSINGER • U-T

Escondido Union School District

Teachers, administrators and other staff members in Escondido’s K-8 district are returning with a new motto: “It begins with me.”

“A Culture of Universal Achievement — It Begins With Me” is the theme for the school year and beyond, said Superintendent Jennifer Walters. The district launched the effort at a firstof- its-kind back-to-school event Wednesday at the California Center for the Arts, Escondido. More than 900 teachers — plus administrators, board members, parent leaders and foundation officials — turned out for a motivational morning led by Damen Lopez, a founder of TurnAround Schools and No Excuses University.

“The whole emphasis is on … universal student achievement and specifically how this year we’re going to get there,” Walters said.

The “It Begins With Me” message isn’t limited to staff. Educators will emphasize personal accountability for students and parents. Every student will have goals, parents will know about them, and “there will be lots of positive support to meet those goals,” Walters said. Bernardo fifth-grade teacher David Boyce and his wife, Del Dios Middle psychologist Marie Boyce, said they left the kickoff empowered and encouraged.

“I came out of this feeling like I’m going to be more assertive” about being positive, Marie Boyce said. “I like the idea of teaching the parents how to motivate their children.”

Recently released state assessment test results that showed gains in the district also are helping to start the school year on a positive note. Scores increased in all subject areas, with Lincoln Elementary and Mission Middle showing the biggest gains, Walters said.

An estimated 17,370 students return to class at 23 Escondido elementary and middle school schools Monday morning.

MICHELLE BREIER • U-T

Escondido Union High School District

Construction crews are finishing a 14-room building at San Pasqual High School, which is expected to be ready for teachers and students the firstweek of October, Principal Erin Smith said.

The two-story building will house two science labs, an art room, a video production room and traditional classrooms. Smith said that currently at least 20 teachers are moving from classroom to classroom during the day because of a space shortage.

Bond-related construction projects elsewhere are complete. Orange Glen High now has full use of its new graphic arts and print shop building. New computer labs and ceramics classrooms and refurbished Associate Student Body and art rooms also are open.

Despite the increase in space, all schools are facing larger class sizes and a reduction in career center services because of budget cuts, district spokeswoman Karyl O’Brien said. Five days were restored to the school year, bringing it to 180.

An estimated 7,975 students are enrolled in Escondido’s four high schools and nontraditional programs. Classes resumed Monday.

MICHELLE BREIER • U-T

Oceanside Unified

OceansideUnified plans to reopen Santa Margarita Elementary School on Camp Pendleton. The campus, one of the district’s oldest, has been renovated using funds from Proposition H, the $195 million bond measure voters approved in 2008.

The district is also working to rebuild another school on Camp Pendleton, Libby Elementary, which school officials expect to be finished this spring.

Oceanside Unified has nearly 20,000 K-12 students dispersed throughout 23 schools.

NATHAN SCHARN • U-T

Poway Unified

One Poway Unified high school will see its first graduating class.

Del Norte High School opened in 2009 and offered classes only to freshmen and sophomores. The school gradually built its junior class, and this year will have its first seniors for the graduating class of 2012.

Poway Unified teaches more than 33,000 K-12 students at 25 campuses.

HAILEY PERSINGER • U-T

San Marcos Unified

When San Marcos students return to school Wednesday, those attending San Marcos High will face the biggest changes.

Construction crews are building an interim campus in preparation for the demolition and reconstruction of the 50-year-old school. Work is set to begin this winter. Student parking and parent drop-off have been moved to two lots on San Marcos Boulevard across Discovery Street, said Superintendent Kevin Holt. Campus supervisors will monitor the residential area near campus, particularly Lake San Marcos, to remind students to use the “ample” student parking rather than neighborhood streets, Holt said.

San Marcos Unified has nearly 19,000 K-12 students at 18 schools.

MICHELLE BREIER • U-T

Vista Unified

Some parents and students in Vista Unified School District will have drastic changes to their daily routines, as Olive Elementary has been moved onto the campus of Washington Middle School and Crestview Elementary has been closed.

A divided school board decided in February to move Olive, which had shown significant academic improvement in recent years. They also decided unanimously to close Crestview. Both were to save money and adapt to declining enrollment.

The move, once projected to cost $382,000, is now expected to cost as much as $615,000. That will be paid for with redevelopment money, allowing the district to save about $230,000 a year from the general fund, school officials say.

The school district plans to offer additional support classes for English learners and accelerated instruction to bring students to gradelevel reading with a program called “Language!”, on top of traditional English classes.

Vista Unified has 31 schools, including an adult education school, and about 22,000 students.

NATHAN SCHARN • U-T

Tuesday, 16 August 2011

SUMMER SLUMP SEEN IN DECREASE

IN COUNTY HOMEBUYING IN JULY

DataQuick reports 11.7% dip in sales and 1.5% in prices over a short month

LILY LEUNG •U-T

San Diego home prices and sales fell in July, not atypical for the summer months and likely due to fewer business days last month, according to Monday’s report from La Jollabased real estate tracker DataQuick.

The county in July recorded 3,041 sales — including single-family resales, condos and new homes — the lowest number for a July since 1995, when therewere 2,373. Sales were down 11.7 percent from June and 0.9 percent the same time last year. A similar monthover- month decline was seen throughout Southern California.

San Diego’s median price in July for all housing types was $325,000, down 1.5 percent from June and down 3.8 percent from a year ago.

The summer season

June-to-July sales on average across Southern California have dropped 4.8 per-

SEE HOUSING • C5

HOUSING • Fewer business days in July and economic uncertainty blamed for decline

FROM C1

cent since DataQuick began analyzing housing numbers in 1988. July sales numbers this year were the third-lowest on record for a July, and nearly 30 percent below the July average of 25,752 sales, covering San Diego, Orange, Los Angeles, Riverside, San Bernardino and Ventura counties.

Bear in mind: When looking at all months, June has had the highest number of sales most often in eight of the past 23 years of Data-Quick tracking. Meanwhile, July has had the highest sales twice during that time frame.

“The latest sales figures look a bit worse than they really are, given this July was a fairly short month” in business days, said Data-Quick President John Walsh in a statement. “But they still suggest some potential homebuyers got spooked. Reports on the economy became increasingly downbeat and, no doubt, some people fretted over the possibility the country would default on its obligations.”

There were 20 business days last month, compared with 22 in June and 21 in July 2010.

Gauging by housing type

The county’s real estate market is nuanced, so here’s a breakdown of last month’s numbers by sales type: Single-family resales: This section usually makes up the bulk of monthly total sales, in July’s case: roughly 65 percent. This was the only subsection of the market that saw a positive change in July.

The median price, or the midpoint home value, was $360,000 last month, down 1.4 percent from June and down 5.3 percent from a year ago. There were 1,982 sales, dropping 9.7 percent from June but up 1.9 percent from one year ago.

Resale condos: July’s median price was $205,000, down 6.8 percent monthover- month and down 8.5 percent year-over-year. Sales fell 10.6 percent from June and 5.1 percent from the same time last year.

New homes: This typically makes up the smallest slice of all transactions every month. Sales fell 31 percent in July from June, the largest month-over-month decline among the housing categories. They also were down from a year ago: 9 percent. The median price was $424,000, 15.5 percent lower than in June and 8.2 lower than the same timelast year.

lily.leung@uniontrib.com

The Six Keys To Real Estate Investing:

First,  You must be motivated. Real estate investing includes effort and patience with tenants and  maintenance personnel as well as work you may choose to do to improve your return.  It is not for the everyone.  The good news is you can hire someone to do most of that work for you.  A good property manager who has the experience, knowledge and training is mandatory. 

Second, You must study, read books, consult, and learn the best approach for your personal circumstance.  A good real estate investment counselor  and real estate expert is your best source to help guide and mentor you.  You must choose someone you can trust and stay with them as you grow your investments.

Third, You need enough cash and income to start and sustain your investments.  Many motivated investors take on a second job just to use that money to get started.  A good lender, teacher will help guide you to the right loan.  The truth is the FHA loans are still available and often have very little down and closing costs.  FHA also has special fix up loans you can get to buy a fixer-upper and use mostly FHA loan money.  Even with loans over 100% of the purchase price!  Leverage as much as you can safely.

Fourth,  Location, location, location.  You must choose the right investment strategy for the right location.  For tenant occupied properties good strong rental demand is imperitive...  You want to own where people want to rent.

Fifth, Use all of the tax incentives the government offers.  Look strongly at the advantage of writing off other income and use the tax deferred retirement strategies built into the tax code.  Many of our investors have built a considerable nest-egg by just using the section 1031 tax code to reinvest in larger properties without tax consequence.

Sixth, Stick with the plan.  Reinvest the income and equities to build and compound your portfolio over time.  Each year you should meet with your real estate counselor to look at your position and make necessary changes.  An agressive approach will accelerate your growth.

Onward!  Upward!!

A bright spot shows nondistressed sales are moving up

LILY LEUNG • U-T

San Diego County’s overall housing market stayed “sluggish” in the second quarter of 2011, but nondistressed sales saw a “healthy rebound,” according to Thursday’s report from the University of San Diego’s real estate center.

In a separate report covering July sales and prices, the San Diego Association of Realtors also shared mixed results.

The USD paper said the county recorded 8,839 sales in the second quarter, a 20 percent increase from the first quarter but fewer than the same quarter in 2010.

That data was collected from Honolulu-based Collateral Analytics and presented in a report by Norm Miller, Charles Tu and Lou Galuppo.
 

 Home, condo prices fall, sales appear mixed, Realtor group says.

  According to a breakdown of San Diego’s market, the number of regular, nondistressed sales “experienced a healthy rebound.” That number rose 40 percent from the first quarter to its second-highest level in four years. Meanwhile, the new-home market continues to be “near the historical low point.”

The authors called the distressed market “mixed.” The sales volume was up for bank-owned and short sales but down for foreclosures.

Total distressed sales in the second quarter rose by 4 percent from the first quarter, but were down by 13 percent from the second quarter of 2010.

Despite that 4 percent increase fromthe first quarter, the large rebound in regular sales means distressed sales fell from 53 percent of the total in the first quarter to 46 percent in the second quarter. Those percentages were the same in 2010.

On Wednesday, the San Diego Association of Realtors said median prices for single-family homes and condos were down in July from June and froma year ago, while sales figures appeared mixed.

The Realtors’ group uses data from the Sandicor Multiple Listing Service, which represents a portion of all transactions.

Looking ahead, USD real estate experts say sales for the rest of the year will be similar to figures from the second half of 2010. They predict distressed sales will make up 45 percent to 48 percent of total sales.

They also expect short sales could increase because of a new state law that bars first and secondary lien holders from going after sellers for money owed after the short sales close.

lily.leung@uniontrib.com

(619) 293-1719 • Twitter:@LilyShumLeung
 

Continue to read on here: San Diego Real Estate Reports Are Mixed

Continue to read on here: San Diego Real Estate Reports Are Mixed

For release:
July 15, 2011

CALIFORNIA ASSOCIATION OF REALTORS® applauds Gov. Brown on signing SB 458 into law

LOS ANGELES (July 15) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown on signing SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.

Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.

“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”

SB 458 contains an urgency clause making it effective upon signing.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.  

Home flipping, property taxes and mortgage relief were the big talkers this week in real estate.

Here's a look back at last week's news and a sneak peek of the upcoming week.

Last week

Wednesday: This year's total assessed value of taxable property in San Diego County has increased from last year, the first year-over-year increase since 2008, said the County Assessor's Office this week. The uptick of 0.51 percent, or $2 billion, over last year's tax roll indicates that "the market is flat," said County Assessor Ernest J. Dronenburg Jr. All 18 cities in San Diego County saw increases in assessed value this year, except three: Carlsbad, Chula Vista and Imperial Beach.

The full story: County sees first increase in property assessments since '08

Thursday: The investor market in San Diego County has heated up during the past two years, as home values are historically low and the inventory of distressed properties has become plentiful. Locally, people are buying up bargains, doing extensive remodels, and marketing the homes on tight deadlines. Unlike flipping during the boom years, today's flips require more effort and research.

Continue to read on here: Obama reforms to help out-of-work homeowners

Google+, Google's +1, and how Social Media is ever changing.

Not too long ago there were rumors in the online community that Twitter was for sale. Google and Facebook were looking to buy Twitter and integrate it into their existing services. Google Wave had released Buzz ,which was an attempt to merge Twitter like Micro-Blog Technology with their existing Gmail Service, it never truly took off. Facebook had taken similar steps to make "Status" messages replace Twitter on their provided service, however what ended up happening was people started using Twitter and Facebook to syndicate their Micro-Blog posts.

So what is a Micro-Blog? Before Social Media was even a whisper in the back of some programmers mind, the internet had already become a tool for anyone to say anything at anytime. Forums, discussion groups, and blogs sprang up all over, some bulletin board systems extend all the way back to the earliest days of the internet. Often time these earliest of blogs were either personal or corporate "News" pages that were updated manually, although tools to make this easier started to pop up in the late 90s.

The term blog comes from an earlier term "weblog" which saw that light of day in 1997, and later due to a joke on another bloggers blog became "We Blog" and finally just "Blog". The Blog became the tool it is today thanks to many factors, although the events of 9-11 spawned a number of political and news related blogs almost overnight. As a technology a blog is simply an online journal, not many restrictions are placed on a blog. Twitter changed this in a massive way.

In July 2006 Twitter was born. Text messaging was already an increasing method of communicating between two people via the existing cell-phone network and Twitter aimed to create a community out of this widely used technology. By limiting a "Tweet" to 140 characters, the Micro-Blog was born. Long before Facebook had even become more popular than Myspace Twitter was sweeping the internet underground and joining someone's online thoughts to a hundred cell-phones configured to receive the message.

The 2007 California Wild-fires saw, what some claim to be, the true power of the Micro-Blog and Twitter. As fire raged across huge chunks of Southern California, News became unreliable and at times you just couldn't get it. Increasingly the younger generations have begun to stop using landlines as cell-phone pricing and technology have only improved, so even the reverse 911 calls were not reaching everyone. However a small dedicated group of Twitter users, bloggers, and photographers, were out on the front lines, capturing and sharing information via Twitter.

One Twitter user could capture a photo post it online, and tweet the location of some chunk of the fires, and in just a few seconds that users friends knew about it and shared it with their friends. News began to travel over Twitter networks at an almost geometric rate. The technology of Micro-Blogging looks at a small Online Social Network, and relies on the over-lapping effect to gain steam. Sure you may only have 3 Twitter friends, but those three friends might have 300 friends, and if they Re-Tweet your message...

Both Facebook and Google attempted to harness this power, and create more value in their own products. Facebook has long been the combination of the right technologies at the right time, and as it expands and evolves you can watch this happen. Not long ago there was not a News Feed or Status updates on Facebook, those where technologies that existed in the Blogging and Micro-Blogging world. Not to mention Facebook games, and it wasn't that long ago that you needed a university provided e-mail address to even join Facebook.

Google is much the same, the Search Engine giant has become one of the most powerful mail servers you can utilize, they have developed their own web-browser, Google Chrome, which is even now threatening to topple Firefox and become number one. They introduced video conferencing through establish email networks, and have replaced AIM (AOL Instant Messenger) as one of the most used Instant Messaging clients. They have even introduced Picasa, a method of sharing photos over a social -like network.

Back in 2009 Google made an announcement, they were working on the next step in collaborative editing, email, and Social Media. Google Wave. It was short-lived but laid the groundwork for a lot of the new Google Technologies, including the almost never used Google Buzz. Buzz is a technology designed by Google to compete with Twitter, that never quite took off. So it was little surprise to the Social Media world when rumors of Twitters sale to either Facebook of Google began to re-circulate in February. However just as soon as the rumors crept up, they died. Facebook released a page layout make-over, and Google mentioned that they were developing better Cloud Development tools, and possibly Chrome OS(A Google built Computer Operating System).

A few months back, Google began to talk about +1, and it is now in fact live. This is away to give a "Like", just as you would in Facebook, to search results returned by Google when you use the Search Engine. In theory these +1s help Google determine which links are the most reliable, creative, original, and helpful, which is factored into the ever growing algorithm that is used in SEO. Last week Google+ came bursting into the mix, as a possible major contender for the top spot Facebook has enjoyed for the last few years.

There was a bit of confusion, Google+ is a new Social Network, Google's +1 is a tool for helping determine SEO... too many "+'s"!

But they are very different technologies. The question is how will Google+ effect the modern Social Media World, and how will it be utilized?

Well the short answer is simple, for now Google+ is a new, growing and changing technology, it is a good contender to replace Facebook, but no one really knows its future. Google+ combines a lot of the technologies and ideas of Google Wave, and brings a more Social aspect to modern Social Media. Much like a party, Google+ is a big Social collection, that can break into many smaller groups and discussions.

For now it looks like Google+ is much more focused on groups, and collaborative works, very customizable and selective, Social Media Marketing doesn't yet fit into the equation. Trends show that as it gathers more steam this will probably change, but for now Google+ is not a place to focus any Social Media Marketing efforts. However Google's +1 is a powerful tool for increasing your place in Google's Search Engine.

The creation of good, solid original content is becoming an even greater factor, as now the internet as a whole as the ability to "Like" what you have to say in Google's eyes, raising your value in Google's algorithm.

Interested in learning more about Google+?

Stay tuned!

Continue to read on here: County sees first increase in property assessments since '08

Continue to read on here: 10 things to know from the Obama administration's housing scorecard

Continue to read on here: San Diego home prices rebound slightly in April

Continue to read on here: New rules aim to curb homeowner underinsurance

San Diego County housing permits dropped 74.3 percent from April to May due to a lull in apartment construction, the Construction Industry Research Board reported Thursday.

But nonresidential activity was up and led the state in a rebound.

Statewide, the residential picture was brighter and enough for the board to project a 14.8 percent increase in permits this year and 73.2 percent from 2011 to 2012.

However, if these projections hold up, 2008-2012 would generate less than 100,000 units annually for the first time since the last major recession, when there also was a five-year slump from 1992 through 1996.

Here are details on San Diego from the May report.

Residential: Total permits authorized by local jurisdictions -- the 18 cities and the county government -- were 220, down 74.3 percent from April's 857 units and off 50 percent from May 2010's 438. Single-family units were up by from April and May 2010, but the volatile multifamily count was down over the same period. Still, for the year-to-date, the total for both categories was 2,586, up from 1,590 for the same period last year, making San Diego one of just seven of the state 28 metro areas to show a year-over-year increase. Five regions, not including San Diego, had year-over-year increases in single- family units and 10, including San Diego, showed an increase in multifamily units. This trend confirms demographers' predictions that San Diego will increasingly house its residents in condos and apartments rather than in traditional single-family homes due to a decline in large green-field development sites and consumer preference to live in denser projects close to work.

Commercial: The total valuation for May was $108 million, up 40.5 percent from April and 113.2 percent from May 2010. While industrial activity was zero, the 16th no-activity month since January 2009 reflecting the slowdown in hiring and economic activity, commercial buildings turned in a valuation of $41.3 million, up from $9.8 million in April and $8.7 million in May 2010. Alterations and additions continued strong at $57.4 million, down from $61.5 million in April but up from $33.3 million in May 2010. San Diego led the state in nonresidential permit valuations for the first five of the years with $482.9 million, up 85.8 percent or $223 million. Contributing to the local growth in May was a $10.9 million store, $20.4 million parking garage for a hospital and $10.5 million fro a store remodel, the board said.

Looking forward, the research board projects housing unit permits statewide to total 51,400 this year and 89,000 next year, compared with 44,762 last year and the boom peak of 212,960 in 2004.

Commercial valuation statewide is projected at $11.8 billion this year, compared with $11.2 billion last year, and $13.4 billion next year.

The board does not publish local projections.

Construction employment averaged 566,100 statewide in May, down from 571,100 in April but up slightly from 533,900 in May 2010.

For the year, construction employment is projected at an average 564,700, compared with 559,800 last year.

Public buildings: For the first five months of the year, the county saw a 3.2 percent increase in public buildings to $209.2 million compared with the same period last year. Schools and community colleges, backed by voter-approved bond financing, was up 51.3 percent to $137.9 million, while other government buildings -- suffering from budget cuts -- was down 33.8 percent to $78.2 million over the same period. Statewide, the five-month total was virtually unchanged at $2.7 billion from 2010.

Public works: Heavy construction valuation for the first five months of the year -- road, bridges, sewer and water works and other civil engineering works -- totaled $250.5 million, down 45.9 percent from the same period last year. Roads and bridges were up 175.9 percent to $134.8 million while other heavy construction was down 72.1 percent to $115.6 million. Statewide, the total was $4.4 billion, up 21.2 percent from the same period last year. Roads and bridges were up 42.5 percent and the balance of the category was up 9.1 percent.

Continue to read on here: Residential down, commercial up in May, construction report shows

Homeowners in California have less than two weeks to get a carbon monoxide detector installed in their homes.

A new state law that goes into effect July 1 requires the devices to be installed in all single-family homes that have an attached garage, fireplace or a fosil-burning heater.

The detectors of the odorless, colorless gas can be bought at hardware stores for anywhere from $20 to $90. The bill requires that devices sold are certified by the Office of State Fire Marshal.

The State Air Resources Board, a regulatory board at the California Environmental Protection Agency, estimates that carbon-monoxide poisoning causes 30 to 40 deaths every year in California. The board said inhalation of the gas has led to about 175 to 700 emergency room and hospital visits within the last three years in California.

But not everyone has to install the detectors by July 1. Owners of other dwellings, such as hotels, apartments and dormitories, have until 2013 to comply.

Homeowners who fail to install the devices by July 1 will receive a 30-day notice. If they fail to comply, they face a maximum fine of $200 for each offense.

Tonya Hoover, acting State Fire Marshall, said it will be difficult to enforce the law but that the focus should be in increasing awareness. “It will be challenging because they are a lot more homes than people able to verify,” Hoover said. “That’s why one should focus on education and outreach, informing people about the law and how to install the devices properly.”

California joins 24 other states, including New York, Florida, Illinois and Texas, in its effort to curb carbon-monoxide poisoning by mandating the use of detectors.

Jim Miguel, who owns several homes in Ocean Beach, Clairemont and Point Loma, said he has already installed carbon monoxide detectors in each of his homes. He says the detectors should not be mandated by the state.

“I am for personal freedom of choice,” Miguel said. “It’s a smart choice to install detectors, but consumers should decide on their own.”

Logan Heights resident Rebecca Gullans supports the law.

Gullans said installing such a device is prudent because she has small children.

But she’s concerned low-income families may not be able to afford the devices.

“It seems like something they should subsidize,” Gullans said.

Part-time county resident Loretta Alley, who owns three properties in Sun City Lincoln Hills near Sacramento, says the law is a great idea.

“It’s the same as with smoke detectors, people resist it at first but look at how many lives it safes,” Alley said.

Continue to read on here: Homes need carbon monoxide detectors by July 1

Baby boomers looking to downsize and young adults who can afford to finally move out will be key drivers of the residential recovery, saysHarvard University's state of the nation's housing report, released Monday.


The U.S. home recovery, expected by many industry leaders to come around slowly, in the meantime has been hampered by declining prices, high rates of foreclosure in states such as California and people faced with negative equity.


"The state of the nation's housing is sobering," said Eric S. Belsky, the managing director of the Joint Center for Housing Studies, which wrote the report. "Total housing construction over the previous decade now barely exceeds the lowest level of any ten-year period in records dating back to 1974."


Hopes of a housing turn-around depend largely on two groups: boomers and those in their 20s.


Authors of the housing paper say the majority of boomers, born from 1946 to 1965, will likely stay in their current homes and "age in place." However, an estimated 3.8 million people in this age range are expected to move to smaller units and gravitate toward "preferred retirement destinations," including areas in the South and West, the report says.


Meanwhile, more "echo-boomers" - those born after 1986 - are expected to move out of Mom and Dad's place and into starter apartments, although that impact hinges mainly on job creation.


Home prices have dropped drastically during the last three years throughout the U.S., causing real home equity to fall from $14.9 trillion at its peak in early 2006 to $6.3 trillion at the end of 2010. 


Despite new levels of affordability and the continued aspiration to own, many potential homebuyers can't afford the higher down payments, income requirements and credit score minimums. 


Those factors have kept many from entering the starter-home market, especially minorities, whose average incomes are on average lower than whites, the report says.


As the owner-occupied market suffered, the rental market picked up: vacancy rates fell and rents rose, a scenario that has played out in San Diego County. 


"If employment growth, especially among young adults, continues to pick up and homeownership rates continue to slide," the report says. "renter household growth should remain strong." That in turn will result in higher demand in rental housing, perhaps prompting more multi-family construction, authors say.


Gary Painter, director of research at University of Southern California’s Lusk Center for Real Estate, told the Union-Tribune last week it will take two years before people buy again. Meanwhile, the rental market will be the first to pick up. 


Recovery-wise, California is among five states that have "the farthest to go." What's critical to a recovery, Harvard experts say, is an increase in the creation of households, which will help the rental market. Also a factor is consumers' perception that prices have hit bottom. Once that happens, buyers on the fence will return to the market and "quickly burn through the lean inventory" and "slim down the excess supply," the report says.

Continue to read on here: Will boomers and 20-somethings carry housing recovery?

San Diego foreclosure trends in April and the re-arrest of an attorney who advises clients retake possession of their foreclosed homes were the two big real estate items in the U-T this week.

Here's our weekly look back on real estate news and look-ahead to give you a head-start on the week.

Monday: Foreclosure attorney Michael T. Pines was was arrested in connection with several felony and misdemeanor counts that involve stalking, filing false crime reports and practicing law with a suspended license, authorities said. Pines, 59, whose license was suspended in April, was arraigned Tuesday in the Vista courthouse and is being held on a $227,000 bail. He maintains his innocence. His preliminary hearing is scheduled for May 31.

For the full story: Foreclosure attorney charged, held on bail

Tuesday: On a year-over-year basis, foreclosures and defaults have been trending down though San Diego County did see a sizable blip in notices of defaults (31 percent) in April vs. a year ago. Either way, experts have said it's hard to predict where both numbers will go because "you never know how far behind the lenders" are with releasing foreclosures onto the market, said Andrew LePage, an analyst with DataQuick Information Systems.

For the full story: Foreclosures and defaults continue to fall Want to see how many foreclosures there were in your neighborhood in April? Click here for the U-T's interactive spreadsheet of foreclosures and notices of defaults.

Wednesday: Two mandatory forms that are meant to show mortgage applicants the costs and risks of home loans could be merged and simplified, the U.S. Treasury Department said. The agency's consumer protection arm is testing two possibilities that combine the Truth in Lending Act form and Good Faith Estimate which long have been criticized for being redundant, clunky and confusing. They provide applicants information such as loan amount, annual percentage rate and other terms.

Homes in San Diego County will always be a good investment on the
long term despite all the bad news.  This last decade has shown that
loose lending practices promoted by the government, lenders, and even
realtor groups with the good intension of increasing home ownership
failed.

San Diego Union Tribune

San Diego homeownership drops in past decade

BY LORI WEISBERG

A prolonged housing crisis and recession erased all of the homeownership gains of the last 10 years, leaving San Diego Countywith a lower proportion of owners than at the start of the decade, new census figures show.

The county’s 2010 homeownership rate now stands at 54.4 percent, down from 55.4 percent in 2000, according to the decennial census data released today. That's far below the 58.2 percent rate in 2005, when San Diego’s housing market was booming and the ranks of homeowners swelled to nearly 606,000. By 2010, the county had nearly 15,000 fewer homeowners than during the housing peak.

While the overall number of homeowners did indeed rise — from 551,461 in 2000 to 591,025 in 2010 — the 7 percent increase lagged the overall growth in households and was far behind the 12 percent increase in renters, the 2010 census data revealed.

The slide mirrors the state of California, which saw its homeownership fall from 56.9 percent in 2000 to 55.9 percent in 2010.

For years, San Diego’s rate has hovered around 55 percent, falling to as low as 54 percent in 1990 and historically has trailed that of the state and nation. In fact, it is unlikely that in a high-priced area like San Diego the proportion of homeowners would ever approach the nationwide rate of 66 percent.

Housing experts, who expect the county’s homeownership rate to fall even further as more homes are foreclosed on, point out that the mid-decade spike in owner-occupied homes was an artificial gain, propelled by lax underwriting standards and rampant subprime lending. The reality is that the thousands of renters who were transformed into owners should never have purchased to begin with, they argue.

“The 3 to 4 percent of households at the margin who would normally be renters became owners because of the easy underwriting and subprime lenders and this psyche that you can never lose on housing.," said Norm Miller, a real estate professor at the University of San Diego.

"When prices were going up, everyone wanted to have a home as an investment, but that American dream was false and not sustainable. Now that the rate is lower, we don’t need to feel so bad because people aren’t getting as wealthy from their homes as they were during a very brief time in our history.”

The years between 2000 and 2010 were probably one of the most volatile periods in San Diego’s real estate market, considering the huge spikes in sales and prices followed by a precipitous decline in values and mushrooming foreclosures.

In 2004, housing sales peaked at more than 68,000, almost twice what they were last year. By 2008, the number of homes lost to foreclosure had ballooned to more than 17,000 as increasing numbers of borrowers found themselves saddled with debt that exceeded the value of their homes, according to DataQuick Information Systems. By contrast, the number of foreclosures between 2000 and 2005 never even reached 1,000 in any one year.

Continue to read on here: San Diego homeownership drops in past decade

This is an interesting read.  I believe that the latest changes to lending are going to make it easier for and more likely that, consumers will compare. 

Kenneth R. Harney

More home buyers should put faith in good-faith estimate

What if the federal government spent years designing a tool to help consumers shop intelligently for mortgages — comparing lenders’ rates, terms and total settlement costs — but consumers ignored it or didn’t use it?

No need to speculate here; it appears to have happened. A new survey of 1,000 American consumers suggests that the ‘good-faith estimate” (GFE) disclosures that all home buyers and refinancers receive at loan application to facilitate shopping are not getting the job done.

Federally mandated good-faith estimates spell out the lender’s charges, all anticipated fees for title insurance, escrow and settlement services, plus other key costs. The most recent version of the GFE, released at the beginning of last year, contains space for consumers to take one lender’s estimates and get competing quotes from as many as three others. It also requires lenders to stand behind their estimates, guaranteeing that some of them won’t increase by even a penny at closing, and that others won’t increase by more than 10 percent.

But the survey found that the GFE may not be improving shopping as intended. After receiving the disclosure, 56 percent of buyers say they did no comparison shopping among lenders. Twelve percent used the form to contact just one other lender, and 10 percent weren’t sure whether they used the GFE at all. Just 3 percent said they comparison-shopped rates and terms at four lenders or more.

The survey, conducted by market research firm TNS Global for mortgage lender ING Direct, also found that 53 percent of those buyers who looked at the GFE spent less than 30 minutes doing so. Twenty-six percent either never looked at it or don’t know whether they looked at it. Forty-nine percent of buyers said the GFE disclosure was too complicated, ‘a waste of time,” or they weren’t sure. Just 37 percent rated it ‘useful.” The survey had a statistical margin of error of plus or minus 3.2 percentage points.

Arkadi Kuhlmann, chief executive of ING Direct, called the GFE potentially ‘one of the most crucial documents a home buyer [receives],” yet the survey indicates that it is not effective. ‘If it’s too complicated and not being used to help homeowners find the right mortgage for them,” he said, ‘then [it’s] just a waste of three pieces of paper.” Kuhlmann’s firm, which does most of its mortgage business online, directs its customers to a Web site it created, ingdirect.com/clearorange, that walks them through the GFE step by step, explaining the process in terms that are easy to understand.

Between 2003 and 2008, the Department of Housing and Urban Development proposed modifications to the GFE, but critics said the revised disclosure, at three pages, was too long and predicted that it would become just another part of the paper blitz that cascades over mortgage applicants.

Kurt Pfotenhauer, chief executive of the American Land Title Association, said that ‘if the [revised] GFE were a rocket, it would still be sitting on the launch pad. Not only has it failed to simplify consumer shopping, there is evidence that [it] is actually confusing shoppers.”

Phillip L. Schulman, a lawyer who represents mortgage lenders and banks, said the survey results ‘are not surprising” because the disclosure looks complicated and ‘doesn’t tell buyers what they really want to know: How much they’re going to pay per month” from a given lender, with all expenses factored into a bottom-line number.

Brian D. Montgomery, who was federal housing commissioner during the final years of drafting the revised GFE, said, ‘We believed that making shopping easier would be a benefit because there had been very little real shopping before. But obviously we didn’t have a magic wand” that would change consumers’ traditional behavior overnight.

Meanwhile, Congress has shifted responsibility for GFEs and other consumer mortgage disclosure issues to the new Consumer Financial Protection Bureau, which is scheduled to spring to life in July. The bureau said that streamlining the GFE and combining it with federal truth-in-lending disclosures will be one of its high-priority projects.

But given the glacial pace of federal rulemaking, the three-page GFE is likely to remain in use for many months, maybe a year or more, before any new streamlined version takes its place. So here’s a smart action plan for you as a consumer. If you want to shop intelligently for a home loan, buck the popular trend: Read your GFE. And use it to compare costs — line item by line item —among multiple lenders.

 

This is very important information for the young people who want to buy homes in San Diego.

FOR YOUNG BUYERS, HOUSING BUST IS A BOON

ROBERT J. SAMUELSON

Newsweek

If you're a 20-something or even younger, your economic future is at best clouded.

Your taxes will almost certainly be higher than today's; your public services (schools, police, sanitation, defense, scientific research) will almost certainly be lower. Paying for old people, covering rising health costs, repairing dilapidated roads and servicing government pensions and the huge federal debt will squeeze take-home pay. Is there any hope for economic gains?

Well, yes – and from a surprising source. Housing.

Say what?

Almost everyone considers the housing collapse a disaster, and it is. Since 2007, roughly 8 million homes have gone into foreclosure.

Housing prices, according to the widely cited Case-Shiller index, are down about 33 p ercent from their 2006 peaks. They're still falling, albeit at a slower pace. In some cities (Atlanta, Cleveland, Las Vegas, Detroit, Phoenix), they're at or below 2000 levels. Home sales are stunted, and construction is a quarter of its previous peak.

Housing's implosion retards the economic recovery. Aside from unemployed carpenters and real estate agents, there's much unsold lumber, carpet and appliances.

But housing's troubles may have a silver lining. If you're a homeowner, the steep fall in prices is calamitous. But if you're a future buyer, it's a godsend. What we're seeing is a massive wealth transfer from today's older homeowners to tomorrow's younger homeowners. From year-end 2006 to 2010, housing values fell $6.3 trillion, reports the Federal Reserve. Assuming there's no sharp rebound in prices – a good bet – that's $6.3 trillion the young won't pay.

Up to a point, the lower home prices merely deflate the artificial "bubble." But there's evide nce that the declines transcend that.

The National Association of Realtors routinely publishes a housing "affordability" index, which judges the ability of median families to buy the median-price home at prevailing interest rates. By this measure, existing homes are the most affordable since the index started in 1970.

Young buyers "will be able to enter the housing market at bargain prices," argues NAR economist Lawrence Yun. When home prices again rise, increases will parallel income gains, meaning that the relative burden of housing costs will remain roughly stable, Yun says. He expects only modest increases in interest rates.

(A one percentage point rise – say, from 5 percent to 6 percent – on a $150,000 mortgage boosts the monthly payment about $95.) Falling real estate prices have also affected new homes. They're getting smaller and less embellished, as they must. New homes typically sell at a 10 percent to 20 percent premiu m over comparable existing homes.

If prices don't fall, buyers won't buy. From 1973 to 2007, the size of the average new home grew by about 50 percent, from 1,660 square feet to 2,521 square feet. By 2009, that was 2,438 square feet, with more declines expected. "People have become much more value oriented," says Jeff Mezger, CEO of KB Home, a major builder. At the height of the boom, with cheap mortgage credit widely available, overconfident buyers selected five-bedroom homes with Jacuzzis and granite-top kitchen counters, he says. Now, buyers favor practical amenities: more kitchen cabinets and bigger closets.

We are, perhaps, at a historic juncture. The relentless expansion of home size since World War II – encouraged by federal subsidies, including the mortgage- interest tax deduction – arguably resulted in many Americans being "over-housed."

Homes grew beyond what was "needed" or could even be enjoyed. The reason they kept expanding, Cornell economi st Robert Frank has argued, was social competition. People want to be in the "best" neighborhoods with the "best" schools, and these neighborhoods have ever larger homes. Somewhat smaller homes, Frank contends, wouldn't make people less happy.

If the housing collapse mutes this self-defeating syndrome, the main beneficiaries will be today's young.

Their homes will be somewhat cheaper and smaller; their operating costs (mainly utilities) will be somewhat lower. The sacrifices in living standards will be barely noticeable, and the savings – housing, after all, represents most families' largest expense – will provide some relief from higher taxes and health costs.

Caveats apply. Housing markets are famously local; what's true in one won't be true in another. Moreover, the housing bust still looms large. The young are staying or returning home; new household formations are less than half of previous levels. Mortgage credit is constricted. Private lenders, on ce promiscuous with loans, are now prudish. Fannie Mae and Freddie Mac are in a state of transition – to what, no one knows.

The price adjustment, especially for new homes, is incomplete. Unless these problems are overcome, housing construction will remain depressed. Eventually, the scarcity of homes would push prices up.

But crises pass and have unintended consequences.

The young just might catch a much-needed break from this one.

     We are here to assist in your Leasing and Management of Investment property of all sizes. 

     Whether you have a condo or home to manage or larger residential or commercial property to oversee we want to help. 

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Steps to washing your home effectively:

    Step 1. Get a preassure washer
    Step 2. Spray house
    Step 3. Finish up, put the washer away, find dry clothes and then yell for your significant other as if something stupendous has just happened and gloat shamelessly at you accomplishments.

3 1/2 percent is the:
Average rate of growth expected this year in U.S. home-improvement industry.

The gain, which follows a decline that started in the third quarter of 2007, may come as property owners who scrimped during the recession spruce up kitchens and bathrooms. Spending probably will rise 9.2 percent to $125.1 billion in the first quarter from $114.6 billion a year earlier, and 13 percent in the second quarter, according to Harvard University's Joint Center for Housing Studies. Spending fell to a six-year low of $112 billion in 2009. The center measures data including hours worked by remodelers and retail sales at building materials stores, according to Bloomberg News.

Continue to read on here: San Diego Union Tribune

Mozilla has long been the number two web-browser, becoming one of the first major market share holders against Microsoft 's IE, in what some call the 'Second Web Browser War' that begun in the late 90s. In the last ten years it has become a crowded Internet, with several browser being currently available for use. Another power player in the Browser war is Google's : Chrome, which has been competing with both Microsoft and Mozilla for a major share of the market.

However Firefox 4 is here, and it seems Mozilla is looking to reclaim some of its position as number two, before Chrome gets a chance to edge it out any further. This launch come hot on the heels of Microsoft's own IE9 and is set to make full use of HTML 5. For a more in-depth look at the launch and how Mozilla is looking right now check out this article on BBC's Technology news page.

Important Info for all Buyers, Sellers, and Agents!

A look at what San Diego has to offer after 55!

We are here to assist you in your transition from just owning a home to becoming a Real Estate Investor with the focus on building wealth and net worth through real estate.
Everyone knows how real estate was involved in this last recession but there is another side.

Real estate held for the long term with knowledge and use of the IRS 1031 Code can mean substantial net worth and income for retirement in later years.

Joe Cobb Broker
Realty Experts

Mortgage loans are vital to the purchase of most real estate.

Residential loans are based mainly on the credit history and income of the buyer.

You and the bank must know your income and expenses, and that you can be counted on to repay the loan amount. This is subject to or modified by the terms of the loan you are borrowing. The recent and ongoing lending crisis taught us all how important this simple concept is. A fixed rate mortgage is the most conservative and the best in most circumstances. For the best loans banks require 20% down, strict credit history, and confirmation of earnings.

Commercial and investment loans are based mainly on the sustainable income and expenses related to the property being purchased.

When you buy, the verifiable income of the property is represented by leases which are seasoned with rate terms and backed by tenants who have verifiable ability to pay the rent or lease amounts.

The down payment is a function of the amount the bank believes they will lend vs the amount of the purchase price. It is rarely based on the loan value as in residential markets, but tends to be somewhere in the neighborhood of a loan value from 55% to 65%. Maintenance and expense allocation for most buildings are often 45% to 50% of the Net Income.

This is only a brief introduction, lending and purchasing investment property is all according to the unique qualities of each individual property.

For personalized, no obligation, analysis of your ability to purchase please refer to our Loans section for more in depth information. This is always your first step in buying property.
 

"Home" A place of solice, comfort, and peace. A place to rest, to dine, to rejuvenate, to play, to interact with friends and family.

At Realty Experts we are your partner in real estate. We help you look for and acquire the house that can be your "home". Whether selling and buying or buying for the first time we are here to help.

To accomplish this we listen, counsel, inform, and guide you. We are your servant and mentor in the process.

Our goal is to give you the service you need in such a way as to earn your continued trust in all your real estate needs and to give you the confidence to refer your friends and relatives to us.
Now is the time to buy, or sell in order to buy that future home you have always wanted. Interest rates and prices are still low but just beginning that slow climb back up. Now is: "Not a time to wait!"

You may not know what you can afford. You can find that out now by going to our Loans page.

If you do not have a Realtor yet you can review our Agent Resumes page. Our search options let you modify your results by language, office or you can search for an Agent by name. On the Agent's Resume page you may find information about the agent, the area they work in, testimonials, as well as see their current listings and review any other information they have provided.