Keep it Real in Sacramento

Fannie Mae has just announced a very solid incentive program for buyers of homes they own in the Sacramento real estate market. Not only is the incentive great for buyers it will help remove vacant homes from inventory, help stabilize neighborhoods and speed the recovery of our local housing market. Check out the details in my weekly column, “New Buyer Incentive” over at Rocklin & Roseville Today.

Short Sales: Our team at MagnumOne is continuing to specialize in helping financially struggling homeowners avoid foreclosure by adopting a short sale strategy. Although many lenders have tightened their policies towards short sales and made it more difficult to obtain an approval we have maintained a high success rate by understanding the how to present the request and using our experience and knowledge in our negotiations.

If you are having trouble making your monthly payment or are feeling stressed because your house is now worth less than you owe, call our office and talk to one of our experts. We can answer your questions and provide you with a no obligation FREE consultation.

There are many important factors those considering buying or selling a home in the Sacramento area in 2010 should know but there are three critical elements. Check out my column, “3 Things You Should Know About Sacramento Real Estate,” over at Rocklin & Roseville Today and see what they are.

Other: The Bank of America horrors stories floating around the market continue grow. You cannot have a conversation with another agent for more than 3 minutes without the subject turning to complaining about BofA. These do not appear to be isolated events of a single employee performing poorly. It really does feel like there have been policy standards changed along with a total disregard for serving customers. On the short sale side they have moved to an online system which seems more of an attempt to drown negotiating agents in details without having to have any direct contact. I for one have sent at least a dozen emails using this system and not a one has been responded to. On the loan side, BofA, when they don’t decline it immediately they run it through a very fine skive and eliminate it at the funding table. Having a sale dependent on the buyer financing with BofA is adding a very large element of risk that we don’t need.

FHA backed loans have almost singlehandedly kept the Sacramento and other real estate markets afloat. With the demise of the sub-prime lenders and banks tightening their credit standards you must have a 20 percent down payment to obtain a conventional mortgage. Even with declining prices this is still a significant sum for first-time home buyers and others who do not have significant savings.

FHA loans have become increasingly popular because the buyer can get in with as little as 3.5 percent down payment. Over the past few months the rumors have been swirling that the FHA would be forced to increase this percentage to as high as 10 percent to help them deal with mounting defaults and reserve requirements. This week those changes were finally announced and if you are interested in learning more about them, check out my column, “FHA Changes Rules” over at Rocklin & Roseville Today and Sacramento Today.

Now is the right time to buy or sell. This is what most people believe Realtors always say and there is good reason for this thinking. For that reason it is hard to tell people now really may be a good time to consider buying or selling. When I say it to someone you can see the corners of their mouths rise in one of those “I’ve heard this before” smiles. Well it really maybe that time as a number of things in the market appear to be happening that could make buying and selling more costly and difficult later this year. Take a look at my weekly column, “Now May be a Good Time to Buy,” over at Rocklin & Roseville Today.

3020 Tice Creek Way, Sacramento (Natomas): Located in Natomas this is a wonderful home for a first time buyer or investor. This is a 3 bedroom, 2.5 bath end unit in a great Planned Unit Development built by Beazer homes in 2007. With almost 1,200 square feet of living space this home is ready to move-in with little or no work. (more)

Offered at $159,000
(Short Sale)

Selling a home in the dead of winter might seem ill-advised, particularly considering the state of the economy, but some experts think that making the decision to wait until spring to list the property could be a mistake.

Government incentives will likely have a big impact in 2010, with many buyers determined to sign a contract before the April 30 tax credit deadline.

“This year, we’re anticipating sales will peak earlier,” says Nicole Hall, editor in chief of Lendingtree.com, an online mortgage comparison service. “The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”

From Realtor.org

The ground fog we see this time of year is about all I can see in my crystal ball when it comes to the Sacramento area real estate market in 2010. My week column, “Uncertainty for Sacramento Real Estate,” over at Rocklin & Roseville Today is about what is causing the housing market to be so difficult to predict. Will real estate lead an economic recovery or be a further drag? Check it out and if you have any comments or questions, please let me know.

As we begin the first business week of 2010 I know we will be busy and buyers who want to take advantage of the federal tax credit program and those that want to beat the rising interest rates get busy looking for homes. My advice is use the internet but be aware with so many short sales and bank owned properties on the market work with Realtor who can send you current listings of homes which are available and meet your needs. This can save you a great deal of time an energy wading through homes which have been sold or are contingent.

If you need any help, let us know. We can set you up with MLS searches and emails which will show you exactly what is on the market, available and meet your individual criteria.

Happy New Year!

We have so many government programs these days that consumers think they are there for everyone. Why am I surprised people are mad that their credit takes a hit when they apply for a loan modification. You are telling the lender you can’t meet the original terms of your loan and your credit should remain the same? Loan modifications are being thought of as a refinance and they are not. Make sure you need a modification before you apply and understand it is going to hurt your credit score.

The following article was taken from Realtor Magazines daily update:

Applying for a mortgage modification and being in a months-long trial period can devastate a home owner’s credit score.

Under the government plan, troubled borrowers can have their mortgage payments reduced to 31 percent of their pre-tax income. They are first put in a trial modification for several months to test whether they can meet the requirements of the new mortgage.

Borrowers who were previously current on their mortgages will see their FICO scores fall about 100 points while they are in the trial period, according to the Treasury Department. Borrowers who were previously late or missed payments will see their scores fall more, the government says.

The longer a borrower is in the trial period, the greater the impact on their credit scores, Once the modification is approved, the borrowers’ mortgage credit status will be listed as current and that should improve their scores, the Mortgage Bankers Association explains.

Even so, the delinquency remains on credit reports for up to seven years and can make getting credit for something else like a car difficult and expensive, borrowers report.

Wow, here we are with just a few days before Christmas. I think I am only ready for Christmas because it comes. There is always something else to do or buy and I eventually run out of time. It has been a busy year and this month, so far, is no exception so I am doing Christmas shopping between client appointments and other real estate tasks.

As the days wind down, I hope the holiday season has been and will be everything you want and more! I know this can be a difficult and stressful time but it is important to take time and enjoy the special days we have ahead with family and friends.

I recently read about a growing trend in foreclosures and wrote about it in my weekly column, “Home Owners Walk Away,” over at Rocklin & Roseville Today. Why more home owners are choosing not to pay their mortgages is interesting, alarming and understandable.