California's role in national foreclosure settlement

Dec 2 2011 11:04AM

The Huffington Post reports that California has yet to announce intentions of pursuing its own prosecutions against mortgage companies who mistreated foreclosure processes or it will rejoin state attorneys general in pursuit of national settlement.

Proposed terms include cash payments to buyers and refinancing for underwater homes while the source reports the agreement is valued at nearly $25 billion.

The source says California removed itself from the conversation, because of concerns that the deal would give too much forgiveness for improper handling without an adequate restitution for homeowners. Many supporters of the national settlement are worried that without the heavily-populated state, the deal most likely won't happen, according to the paper.

California is represented by state attorney general Kamala D. Harris, and the source says she was heavily involved in national negotiations until last month. She reportedly excused herself because she was concerned the settlement would dismiss services' liabilities.

The source reports that other states have also showed concerns about terms within the national settlement, including New York, Nevada and Massachusetts.

HOME BUYING DURING HOLIDAY SEASON

Home buying during the holiday season

Nov 21 2011 4:45PM

With low mortgage rate and home prices, there is no question that it is a buyer's market. Fox Business reports that applicants may run into more obstacles when buying during the holiday season, but a move-in date before the first of the year isn't completely out of the question.

The housing market is typically less active during the holiday which sometimes motivates sellers to drop prices lower or accept offers more quickly. Amir Korangy, publisher of The Real Deal magazine, told Fox that buying a home during the holidays can offer a better deal. Buyers would just have to deal with moving in the winter weather and having less of a variety to choose from, as there are less listings during this time of year.

It is important for buyers to remember that purchasing a home should not be rushed, and move-in dates should not revolve around a holiday deadline, advises Frances Katzen, managing director of Prudential Douglas Elliman, a real estate firm in New York City.

Buyers should still invest in having the home inspected, and keep in mind that workers will most likely have time off for the holidays. Fox also suggests that buyers should have a go-getter mentality while remembering that the home buying process requires a lot of detailed documents.

Now's the Time to Take the Plunge and Buy a Home

Potential homebuyers should take the plunge

Oct 6 2011 11:06AM

For those who are prepared to make a downpayment and get a home loan, now may be the best time to purchase real estate, according to MarketWatch.

Because interest rates have reached historic lows, those who qualify for the best rates can effectively cut their monthly mortgage payments by a significant amount. When these less expensive home loan payments are stacked up against quickly rising rent prices, consumers can easily see how their money may be best spent, the source explains.

In addition to being a worthwhile investment and more economical than paying monthly rents, home ownership can also serve to save individuals money in other ways. Homeowners can also deduct their mortgage interest payments on their yearly tax returns.

Home values tend to increase over time, and as such, those who buy now could see their investments grow exponentially. Furthermore, once equity in a home has built up over time, homeowners can use that as collateral for additional loans. While many twenty-somethings may not see the use of home equity now, in 20 to 30 years, that equity could help them pay for a child's college tuition.

LOAN LIMITS DECREASE

Call for Action: Loan limits may decrease. Respond now!

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NAR recently issued a Call For Action urging REALTORS® to contact Congress and clearly communicate that Congress needs to prevent loan limits from expiring on Sept. 30.

Unless Congress acts, the current loan limits will expire on Sept. 30 and the cost of a mortgage could rise significantly. More than 30,000 California families will face higher down payments, higher mortgage rates, and stricter loan qualification requirements if conforming loan limits on mortgages backed by the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac are reduced beginning Oct. 1, 2011, according to analysis by C.A.R.

Please contact Congress today and communicate clearly that a housing recovery depends on keeping mortgages affordable and that Congress needs to prevent these higher loan limits from taking effect.

Respond now: https://realtorparty.realtoractioncenter.com/site/Advocacy?cmd=display&page=UserAction&id=1653

GO SOLAR.... WE HAVE SUN IN CALIFORNIA

Home values may increase with solar energy

Aug 3 2011 4:41PM

Many individuals may want to go green in their home for purely ethical reasons. However, there are financial benefits to green technology as well, according to Forbes.

A recent study conducted in the Sacramento and San Diego areas found that consumers who installed solar panels to their house saw a 3.5 percent increase in home values. Appraisals rose even more in areas with more college educated individuals and Prius hybrid cars, according to The National Bureau of Economic Research.

Solar panel installation can boost a home's value by $20,194, on average. This puts the mean return on investing in solar technology at 97 percent without accounting for home energy savings, according to Forbes.

While the green renovation can come with a high price tag, there are many ways to help subsidize the project. Homeowners who know they want to add solar panels before they sign closing papers can bundle the costs into their original home loan with some mortgage lenders. Others can use loans specifically created to add the technology, and all can benefit from the tax incentives created for homeowners that opt such energy efficient additions, the source reports.

Old World Spanish 100% Solar

REMARKS: The integrity of this old world spanish home has been kept while a renovation two years ago includes upgrades such as, 100% solar with battery backup system, new copper plumbing, new main sewer line, new HVAC w/dual panels and the best hepa filters, new electrical panel and all new electric throughout, new garage roof, door, electric opener w/remote to house, french drain system, red oak floors and granite throughout, all bedrooms are suites with luxurious baths, high beamed ceiling in living room, three gas fireplaces, new fencing in backyard, interior alarm system w/motion detector.

Selling Predictions for 2011

A Market Preview into 2011


Homeowners are more interested in making more long term financial decision rather than fight with uncooperative banks to hold on to deeply underwater properties.

Condo Owners in dysfunical HOA's will also move beyond feeling trapped, and the numbers of them who will walk away, and will, ratchet upwards next year.

One outcome will be that the homeowners that are underwater will decrease next year as more homes enter the foreclosure funnel and become bank owned properties. While some will walk away from their homes taking the credit hit, and pressing a lifestyle reset button, others in a stable equity position will have a much appreciative gratitude for their homes.

Many Sellers nationwide will enter the first phase of detaching from their home and list them as Short Sales. But they will be less attached to a successful short sale outcome, refusing to spend an extensive amount of time or money going round with the bank. Uncooperative Banks will find themselves adding those homes to the inventory of foreclosed homes.

The other group of Sellers will list their homes in an effort to get them sold. They will become "transactionally sophisticated" helping buyers leap over financing hurdles like FHA condition requirements and Low Appraised Values. Some will even extend reverse offers to buyers.
Burying a figurine in the yard will no longer be a last resort of a motivated seller.

There are 2 types of buyers: (non-urgent buyer, transactionally sophisticated) the non-urgent buyer, in a recession-resistant market who missed the tax credit. This buyer is only willing to buy the perfect property (whatever that IS)they will likely see 100 homes and make 20 low ball offers on properties.

The other will be "transactionally sophisticated" very strategic, resourceful and adept with information. These buyers are very aware that their decision to buy a home will need to be a long term one. They are willing and able to relocate, and they are researching everything from job growth to migration stats before selecting the town where they will purchase their home.