Interest Rates to Remain Low!!

By Drew FitzGerald

Mortgage rates are expected to remain very low at least through mid-2012, while housing activity improves slightly, according to Freddie Mac’s economic and housing outlook released Wednesday.

The outlook also projects fewer single-family home-loan originations but more multifamily lending in 2012. The rental market is likely to lead growth in the lending industry, though parts of the country will also benefit from increased activity in the single-family home market.

High unemployment and a glut of foreclosed properties have depressed the housing market in recent years, despite extremely low interest rates that have made borrowing more attractive.

“While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly,” said Frank Nothaft, Freddie Mac’s chief economist. “All told, next year will be another bumpy ride.”

Job growth must accelerate beyond the average monthly payroll gains of 130,000 seen this year through November for the unemployment to decrease significantly. Even then, the mortgage company predicted the unemployment rate will remain above 8% in 2012.

Freddie Mac predicts the U.S. economy will grow by about 2.5% next year.

• Freddie Mac,
• Mortgage Rates

Sales up Prices Down

The Orange County Register
California house sales up, prices down
California home sales posted an increase both on a monthly and annual basis in November,
marking the fifth consecutive month of year-to-year sales increases, according to figures
released today from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Meanwhile,
the statewide median price of an existing, single-family detached home sold in California rose 1
percent compared with October, but declined 5.2 percent compared with a year earlier.
Making sense of the story
 Closed escrow sales of existing, single-family detached homes in California rose to a
seasonally adjusted 503,570 units in November, up 2.1 percent from a revised 493,140
in October, according to information collected by C.A.R. from more than 90 local
REALTOR® associations and MLSs statewide.
 November home sales also were up 2.3 percent from the revised 492,040 units sold
during the like period a year ago. The statewide sales figure represents what would be
the total number of homes sold during 2011 if sales maintained the November pace
throughout the year. It is adjusted to account for seasonal factors that typically influence
home sales.
 The November statewide median price of an existing, single-family detached home sold
in California was $280,960, up 1 percent from $278,060 in October but down 5.2 percent
from the $296,480 median price recorded for November 2010.
 The Unsold Inventory Index for existing, single-family detached homes was 5 months in
November, down from 5.3 months in October and down from a 6.2-month supply in
November 2010. The index indicates the number of months needed to deplete the
supply of homes on the market at the current sales rate.
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December 17th Foreclosure update

RealtyTrac: November foreclosure activity hints at rising tide (CHARTS)
California, Arizona post annual increases amid U.S. seasonal dipBy Inman News, Thursday, December 15, 2011.

After rising in October, foreclosure activity fell slightly on a monthly basis in November, but some signs point to a coming increase in early 2012, according to a report from foreclosure data site RealtyTrac.
One in every 579 housing units, or 224,394 properties, received a foreclosure filing -- a default notice, scheduled auction, or bank repossession -- in November. That's a 3 percent drop from October and a 14 percent drop from November 2010 -- the smallest year-over-year decline in the past year.
"Despite a seasonal slowdown similar to what we've seen in each of the past four years, November's numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs (bank-owned homes) or short sales sometime early next year," said James Saccacio, co-founder of RealtyTrac, in a statement.
"Overall foreclosure activity is down 14 percent from a year ago, the smallest annual decrease over the past 12 months, and some bellwether states such as California, Arizona and Massachusetts actually posted year-over-year increases in foreclosure activity in November.
Source: RealtyTrac
The number of homes receiving default notices decreased 8 percent month to month and 9 percent year over year in November, to 71,730 properties. That figure is also a 9 percent decline from August, when default notices rose 33 percent from the month before.
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That surge in default notices that began in August meant scheduled foreclosure auctions were at a nine-month high in November, Saccacio said.
Scheduled auctions rose 13 percent month to month but fell 17 percent year over year in November to 96,540. On a monthly basis, auctions rose more than 35 percent in several states, RealtyTrac said: California (63 percent), Washington (56 percent), Ohio (53 percent), New Jersey (44 percent), and New York (38 percent).
REO activity hit a 44-month low in November with lenders repossessing 56,124 properties. That's a 17 percent drop from both October of this year and November 2010.
Nevada had the highest foreclosure rate in the nation for the 59th straight month in November despite "artificially low foreclosure activity," RealtyTrac said, due to a new Nevada state law designed to crack down on documentation irregularities by foreclosing lenders -- that law took effect in October. Foreclosure activity in the state rose 3 percent from October, but was down 43 percent compared to a year ago.
10 states with the highest foreclosure activity rates in November:
Area
Foreclosure rate (November 2011)
U.S.
1 in 579 housing units
Nevada
1 in 175
California
1 in 211
Arizona
1 in 256
Utah
1 in 290
Georgia
1 in 330
Michigan
1 in 330
Florida
1 in 358
Illinois
1 in 427
Ohio
1 in 500
South Carolina
1 in 517
Source: RealtyTrac
Foreclosure activity in California rose 11 percent year over year and 15 percent month to month in November. The increase was driven largely by a jump in scheduled foreclosure auctions, which posted a 10-month high last month. Foreclosure filings in the Golden State accounted for 28 percent of the nation's total -- more than any other state.
Arizona also saw an annual increase in foreclosure activity -- the state's first since October 2010. Filings rose nearly 4 percent year over year and 1.3 percent month to month.
Other states that saw annual increases in foreclosure activity included Vermont (100 percent), New Hampshire (45 percent), Maine (29 percent), Rhode Island (20 percent), Delaware (16 percent), Louisiana (nearly 12 percent), Massachusetts (11 percent), South Carolina (4 percent), and Wisconsin (4 percent).
California accounted for nine of the 10 metropolitan areas with a population of 200,000 or more with the highest foreclosure activity rates. Stockton, Calif., had the highest foreclosure rate in November with 1 in 120 units receiving a foreclosure filing. The only non-California metro among the top 10 was Las Vegas, which had held the No. 1 spot for 22 months before October.
All nine California cities posted double-digit monthly increases in scheduled foreclosure auctions in November, including a 65 percent jump in Stockton and a 100 percent jump in Fresno.
Metro area
Foreclosure rate (November 2011)
Stockton, Calif.
1 in 120 housing units
Riverside-San Bernardino, Calif.
1 in 125
Vallejo-Fairfield, Calif.
1 in 136
Bakersfield, Calif.
1 in 139
Modesto, Calif.
1 in 139
Las Vegas
1 in 150
Sacramento, Calif.
1 in 158
Fresno, Calif.
1 in 165
Merced, Calif.
1 in 182
Visalia-Porterville, Calif.
1 in 183
Source: RealtyTrac

Southern California Home Sales Rise

SoCal home sales rise on declining prices
by KERRY CURRY
Southern California home sales, prices suffer in April
December SoCal home sales down 12.5% from year ago: DataQuick
Southern California home sales dip, but prices inch up
Portland home sales and prices slide as foreclosures drag market down
Miami home sales down 4.2% despite condo surge: DataQuick
Wednesday, December 14th, 2011, 12:04 pm
The number of homes sold in Southern California rose modestly last month from both October and a year earlier as investors and first-time buyers targeted homes priced below $400,000.
Prices, however, slipped in most areas, except in San Bernardino, Calif., where the median price rose 2.3% and nearby Riverside, where prices remained stable, according to San Diego real estate information firm DataQuick.
A total of 16,884 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in November, up 0.3% from October and up 4.2% from November 2010.
More often than not, sales have dropped between October and November and have fallen, on average, 8.4% between those two months since 1988, when DataQuick's statistics begin. Still, last month’s sales were 22.7% lower than the November average of 21,832 transactions since the record-keeping began.
November existing-home/condo sales rose 5.8% from a year earlier, while new home sales fell 15.2% to the lowest level on record for a November.
"Tis still the season to go bargain hunting — or at least that’s what the November home sales data suggest. The portion of homes sold to investors continued to hover near an all-time high,” said John Walsh, DataQuick president.
Distressed property sales accounted for 51.3% of the Southland resale market last month, down from 52.3% in October and down from 53.4% a year earlier.
Short sales, where the sale price fell short of what was owed on the property, made up just shy of 20% of Southland resales in November.
Lower conforming loan limits that took effect Oct. 1 continued to impact the housing market. Lawmakers recently restored the higher limits, which vary by county, for FHA loans but not for mortgages guaranteed by Fannie Mae and Freddie Mac.
In Los Angeles and Orange counties, where the conforming loan limit was lowered from $729,750 to $625,500, the number of homes sold with purchase loans in that range totaled 58 in November, down 44.2% from October and down 84.1% from a year earlier.
The chart below (click to expand) shows homes sales and median prices changes in the Southern California markets tracked by DataQuick.

Should I take my home off the Market During The Holidays?

Should I Take My Home Off the Market During the Holidays?
When you look at your calendar you may find the months already overloaded with seasonal obligations -- shopping, entertaining, children's pageants, charity work, decorating the house, and so much more. If you are also trying to sell your home, you are under extra pressure to keep your home in "showtime" condition. And that could be the last thing you need before the holiday spirit is broken.
It is understandable why you would be tempted to take your home off the market during the holidays. And the list of justifications is long. If you are too busy, buyers may be also, and you may find your efforts unrewarded with not enough showings. And what if you do get an offer? You may be faced with the possibility of packing and moving during the busiest time of the year. Besides, you can give your house a rest, and it will have better momentum after the holidays. Better to just pack it in and start fresh in January, right?
But wait! Most top Realtors agree that taking your home off the market during the Christmas season is a mistake. The house surely isn't going to sell off the market! What is the advantage of that? So you're busy. Let your Realtor do the work. You can leave in the morning, go to work, go shopping, and let your Realtor take care of things.
The holidays are a wonderful selling period. Why? Because most people take off work sometime during the season. The husband and wife are both off and want to see houses. Most agents like the holidays because the buyers have more time, and they can look at homes together.
Before you take your home off the market, consider the following points:
Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are that much more serious. Agents believe the home market is no more affected at Christmas than during other "busy" periods. If that were so, the market would shut down throughout the year as families concentrate on spring weddings, June graduations, summer vacations, and autumn back-to-school activities.
Many buyers deliberately choose to shop for a home after the busy spring and summer rush. They know that it will be easier to look, and that negotiations will be less stressful. They may not have children, or they may have grown children, so moving to accommodate the school year isn't a consideration. Finding the right home at the right price, however, is.
Relocating families often don't have a choice when they can leave for their new destination. Although 68% of transferring families have children, many families have to transfer during the middle of the school year. These families are that much more motivated to get their families settled in before either the January semester begins, or to arrange for the move during spring break in March. If you sign a contract by New Year's Eve, the timing couldn't be more perfect.
At Christmas time, our culture focuses on family and the home. Preparing for the indoor activities of winter is one of the most enjoyable periods of family life. Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in the attractive environment you have created.
When is your home ever more beautiful and inviting? You have cleaned and decorated, and your home looks like a picture postcard. If the results are good enough for family and friends, they will surely be good enough to impress your buyers. Get the family team on board to do a five-minute blitz pick-up every morning to keep holiday messes to a minimum.
With many motivated buyers in the marketplace, you may find you have more showings than you would if you sold your home during a busier time of the year.
If you do get a contract, you can arrange the terms to suit your needs. If moving during the holidays isn't an option, you can put in the closing date of your choice. Most people can close 30 to 60 days after a contract is written, so there is plenty of time. Possession and closings are very negotiable. Written by Realty Times Staff
Wondering What Your Home Is Worth? -- Let me show you.
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Rick Sayers E-mail: rick@ricksayers.comWeb: http://www.ricksayers.com866-725-0589
Windermere Real Estate Coachella Valley760-574-6598Palm Springs, CA. 92262License # 01377021


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The Price of a 'No-Cost Loan'

HOME buyers concerned about high closing costs in this tight economy might be tempted by a type of loan that requires no cash outlay in exchange for paying a higher interest rate, especially because rates are already at historically low levels.
But these “zero-cost” or “no-cost” financing deals, as they’re known, could end up costing a borrower dearly over time, some mortgage experts warn.
“I’ve always seen them as a marketing ploy,” said Charles S. Light, a branch manager of Odyssey Funding. “If you’re going to be in the loan more than five years, it usually does not make sense.”
Unlike some similar loans, which don’t require an out-of-pocket outlay but tack on the thousands of dollars in closing costs to the balance, zero- and no-cost loans typically add a half percentage point or so to the rate while not increasing the mortgage balance.
The third-party fees — for the appraisal, credit report, title insurance, recording, and, if you use one, mortgage broker — are paid by the lender. The fees, including how much the broker is making on the loan, are disclosed on the closing statement.
But if you bypass a broker and go straight to the lender there is less transparency, because the loan officer doesn’t have to disclose how much the lender is making off the loan.
The math on no-cost loans, which can be used for both purchases and refinancing, and which come in fixed and adjustable rates lasting 3 to 30 years, is simple.
Say you opt for a $300,000 no-cost, fixed-rate loan at 5 percent for 30 years, instead of coughing up $6,000 in closing costs and paying 4.5 percent interest. If that’s your choice, you will have monthly payments of $1,610.
By paying the closing costs up front for the 4.5 percent rate, you recover those costs at 66 months, according to Mr. Light. But you also have a monthly payment of $1,520 — $90 lower than the no-cost option. That adds up to a savings of $32,547 in interest over the life of the loan.
No- or zero-cost loans can seem appealing to residents of New York, who face a mortgage tax of 1.8 percent (around 0.8 percent if they live in the state but outside the city), as well as fees for a bank-hired lawyer.
“People are so tight on cash, it allows people to save out of pocket,” said Thomas Martin, the president of America’s Watchdog, a consumer advocacy group based in Washington.
But Mr. Martin added that buyers should plug in the numbers on an amortization calculator (one is available at www.federalreserve.gov) and compare them with those for a conventional loan. If you plan to refinance a no-cost loan within several years — an option that might make financial sense for some people — make sure you have no prepayment penalty, he added.
Zero-cost loans emerged in the early 1990s and blossomed during the mortgage boom, when they were sold by big banks and lenders alongside no-documentation loans and other subprime products, mainly to lower-income consumers who lacked cash.
TODAY, Mr. Martin said, tighter lending and disclosure requirements make the no-cost option “a totally different animal than five years ago,” with lenders now much stricter about verifying income levels.
Still, some big banks, including Bank of America, no longer make them available.
“We’re focused on offering products that offer complete transparency to the customer,” said Terry Francisco, a spokesman for Bank of America.
Loan-volume numbers are difficult to come by, though other banks, including Wells Fargo, still offer the loans. The Wells Fargo one, called Closing CostSaver, typically runs a half to five-eighths of a percentage point higher than conventional loans and comes in 10- to 30-year terms.

Palm Springs Calif.Real Estate update 4/1

$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME
Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.
Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.
For more information, C.A.R. offers a Homebuyer Tax Credit Chart with a side-by-side summary of the federal and California laws. C.A.R. also offers a legal article entitled Homebuyer Tax Credit Update.

Palm Springs Calif.Real Estate update 3/8

Nab a real estate deal - while you still can By Beth Braverman, staff reporterMarch 2, 2010: 10:30 AM ET
(Money Magazine) -- If you've been holding off on a real estate purchase, glimmers of a turnaround in the housing market may have you wondering if it's finally time to make your move.
While home prices remain low, they're no longer free-falling in most markets. Mortgages are historically cheap. And the sweet tax credit that was offered to new buyers last year has been extended to April 30 and expanded to include current homeowners too.

But for all the motivation to act quickly, buying right now is not a no-brainer. In some areas home prices may fall further. If you own a house now, it may take longer than you expect to sell it, and you may walk away with less cash than you thought.
"It's a good time to buy, but it's still a really difficult market," says Patrick Newport of IHS Global Insight. As the clock ticks toward the tax-credit deadline, answer these questions to decide whether it's time to get off the sidelines.
Can you really nab that tax credit?
Current homeowners who sign a contract to buy a home on or before April 30 get a dollar-for-dollar reduction on their taxes of 10% of the purchase price of the home, up to a maximum of $6,500 (first-time buyers can get up to $8,000).
But according to the National Association of Realtors, buyers spend about 12 weeks home shopping before making an offer, so if you haven't already started looking, you may be pressed to meet the deadline.
Plus, to qualify for the full credit, your household income must be under $225,000 if you're married and less than $125,000 if you're single; repeat buyers must have lived in the home they are selling for five of the past eight years. The good news: Once you've signed the contract, you have until June 30 to close the deal.
How much could you lose by waiting?
Besides the loss of the tax credit, the biggest game-changer facing buyers is a potential jump in mortgage rates. If the Fed moves ahead with its plan to stop buying mortgage-backed securities at the end of March, the rate on a 30-year fixed mortgage is expected to increase nearly a percentage point from today's 5.18% to 6.1% by the end of 2010, according to the Mortgage Bankers Association. On a $300,000 fixed-rate mortgage, that's an extra $174 per month.
But if home values are falling in your area, you don't have much to lose by waiting. If the house you want costs $375,000 today and you put down 20%, you'd pay $1,644 a month for a fixed-rate mortgage at 5.18%. Buy that same home for 5% less later on with rates at 6% and you'd only pay an extra $65 a month. If prices plunge 10% or more this year (as they are expected to in 12% of markets, according to Fiserv), you'll come out even or ahead.
To get a handle on the direction of your market, check trulia.com to see whether inventory levels are increasing, and visit realtytrac.com to find out whether foreclosure filings are still rising. A glut of properties and bank-owned homes means a recovery may not be in sight.
How quickly can you sell the home you now own?
Even in markets that are recovering, sellers must price aggressively to make a fast deal.
"Everybody thinks their house is worth more than it is," says Dallas realtor Bruce Lynn. Before you sign a contract for a new place, ask a few agents to give you a realistic figure that will generate a quick sale. Can't bear to part with your home at that price? Waiting may be your only option.
Also keep in mind that, with the credit crunch not far in the past, lenders may not approve your purchase until you've sold your home. A delay in sale could also stick you with two mortgages, far outstripping any savings from the tax credit.
See if the sellers will let you put a contingency in the contract that negates the sale if you don't find a buyer -- it's a long shot but worth a try. If they won't, propose adding a kick-out clause that allows the sellers to keep their home on the market, but lets you either pull out or quickly move ahead with the deal if they get another offer.
While extra contract negotiations may be a hassle, the past few years have proved that a purchase decision shouldn't be taken lightly. "This may be the best time in history to buy a home," says Denver realtor Jeff Fogler, "but only if you can really afford it." Are you underwater on your mortgage? Money Magazine can help. Send your name, age, hometown and photo to donna_rosato@moneymail.com and you could be profiled in an upcoming story.

Palm Springs Calif.Real Estate update 1/11

January 28, 2010

Fannie Mae Announces 3.5 Percent Seller Assistance on HomePath® Properties

Incentive Part of Ongoing Effort to Stabilize Neighborhoods

WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010.

"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home."

Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

Fannie Mae Resource Center Telephone 1-800-7FANNIE
(1-800-732-6643)

California Building Industry Association - It’s Official: California Housing Production Reached New Low in 2009

California Building Industry Association - It’s Official: California Housing Production Reached New Low in 2009

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Palm Springs Calif.Real Estate update 1/8

MSNBC
Housing may be headed for double dip
A recent real estate report indicates that consumers may be taking their time house hunting this winter, which
some economists believe could lead to a “double dip” in home prices. A recent report from the NATIONAL
ASSOCIATION OF REALTORS® (NAR) showed that its pending home sales index declined 16 percent in
November to a reading of 96, the first decline after nine consecutive months of gains.
KEEP THIS IN MIND
• NAR’s Pending Home Sales Index (PHSI) is a barometer of future sales. Typically, there is a one- to
two-month lag between the signing of a sales contract and the close of escrow. Although government
incentives, low interest rates, and affordable home prices have lured many buyers, especially firsttimers,
to the market, historically sales decline during the winter months and begin to rise in the
spring.
• Because of the government’s efforts to stimulate the housing market, some economists believe that
housing prices will decline once the incentives come to an end. However, the CALIFORNIA
ASSOCIATION OF REALTORS®’ (C.A.R.) closely watched "2010 California Housing Market
Forecast,” projected that the median home price in California will rise 3.3 percent to $280,000 in 2010
compared with a projected median of $271,000 in 2009.
• According to C.A.R.’s Vice President and Chief Economist Leslie Appleton-Young, unlike the rest of
the nation, home sales in California already bottomed out more than two years ago, and the median
home price reached its trough in February 2009.
• Although home buyers should not focus solely on future home price appreciation, according to data
collected by C.A.R. over the last 40 years, homeowners who purchase a median-priced house, live in
their home for at least five years, and sell it at the current median price, have averaged an annual rate
of return of more than 11 percent.
To read the full story, please click here:
http://www.msnbc.msn.com/id/34704789/ns/business-real_estate/

Palm Springs Calif. Merry Christmas 12/25 52 degrees

One of the most commonly advised and cost free steps to improved home security is to keep your home occupied, or at least looking occupied. If you’re not familiar with some of the unintended invitations to intrusion, they include notes on the door advising of the occupants absence; built up snow on walks and driveways in the winter months; un-mowed lawns in the summer months; accumulation of mail, newspapers or circulars; total interior darkness before a normal bedtime; and an open garage with no vehicles present.
Valuable counter-measures include posted notices that your home is protected by a security system or notices that your homes’ contents have been engraved and registered to make selling any stolen items difficult. Photoelectric outdoor lights and automatic timers that activate indoor lights, radios, and televisions, preferably at random intervals, are also major deterrents.
“House sitters,” or having a neighbor’s car in your driveway also helps. To further discourage intruders, keep doors and windows locked, especially at basement and first-floor levels, or where the home is accessible from a fire escape, tree, porch or other structure. Inside, doors that lead to the basement or garage should be included in the keep-locked category.
Ladders should not be stored outside, on an open porch or hung under the eaves of a garage. Nor should vans or other tall vehicles be parked where they might serve as improvised ladders.
Of course, you’ll also want to make sure you have good quality security hardware and locks on all doors. Even if you opt to install a security alarm system, these simple deterrents should be routine
Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue.

Palm Springs Calif.Real Estate update 12/18

Obama's standardized short-sale plan could help troubled homeowners
By Kenneth R. Harney
December 13, 2009
Reporting from Washington - If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's standardized short-sale plan that's scheduled to roll out in the next several months.The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has traditionally been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, timelines and financial incentives.A short sale involves a lender or investor agreeing to collect less than the balance owed on a mortgage debt out of the proceeds of a negotiated sale of the property. Often a short sale is the last alternative to foreclosure available to distressed homeowners and banks. Say you've lost your job and fallen behind on mortgage payments. With little or no income, you can't qualify for a modification program.In this situation -- grim as it is -- your best move may be to see whether your lender will accept a short sale. Though the idea sounds straightforward, in practice it is not. First, the bank needs to be convinced that a short sale would yield it more money at the bottom line than a foreclosure would.This usually means you need to bring in a real estate agent who knows the ropes and can pull together the key information needed by the bank: recent comparables on closed sales, local market trends and the likely selling price of your house.You'll also need a buyer for the house -- one who'll pay a price acceptable to the bank and has financing to close the deal. If you happen to have a second mortgage or home equity credit line on the property, you'll also need to negotiate how much that lender will receive from the sale proceeds.That can be tricky. In depressed real estate markets, the second-lien lender may be holding a note that's worthless in a foreclosure because plummeting property values have wiped out the collateral. Yet that same bank is in a pivotal position: It has the legal power to block the short sale by refusing to sign on to the deal.Equally troublesome in short sales is the fact that banks, mortgage servicers and bond investors often have conflicting requirements for documentation and financial yields that can complicate and drag out the haggling for months.Enter the Obama administration's new streamlining plan. Besides requiring lenders and servicers to use uniform documentation, pre-approved short-sale terms and accelerated turnaround times, the plan provides financial incentives for key players:* Homeowners who successfully complete a short sale under the program receive $1,500 to defray relocation costs.* Mortgage servicers can receive $1,000 per case.* Investors get $1,000.* Second-lien holders receive up to $3,000 from the sale proceeds.Even real estate agents get something: The rules prohibit banks from forcing them to cut their commissions from the listing agreement as part of the final deal.Sounds like a formula for encouraging a lot more short sales, right? The jury will be out on that for months, and most major lenders are still studying the fine print of the Obama program. But early reactions from big banks appear to be positive.Dave Sunlin, a senior vice president for Bank of America Corp., said: "We're very pleased. We welcome any effort to reach standardization for all parties" involved in short sales.Faith Schwartz, executive director of Hope Now -- a Washington-based group representing the country's largest banks, mortgage servicers, bond investors and consumer counseling organizations -- said the plan should bring "uniformity and standards" to a process usually characterized by "mayhem" among the negotiating parties.Scott Brinkley, a senior vice president for First American Corp., a firm that provides market data for banks, said, "You're going to see a lot of cooperation" by lenders and investors.But there could be a major pothole: The Obama plan tilts to consumers by requiring second-lien holders to drop all financial claims against short-selling borrowers beyond the $3,000 they take out of the deal.Travis Hamel Olsen, chief operating officer of Loan Resolution Corp., a Scottsdale, Ariz., consulting firm, says the $3,000 payment won't be enough for many second-mortgage lenders. Today they frequently obtain additional short-sale compensation from sellers as the price of their participation -- in cash or through promissory notes -- far beyond $3,000."I'm concerned that that could limit participation" by second-lien holders, Olsen said.Bottom line for homeowners who might benefit: Don't have wild expectations, but definitely ask your servicer whether it plans to participate and whether the forthcoming standardized plan for short sales might work for you.kenharney@earthlink.netDistributed by the Washington Post Writers Group.
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Copyright © 2009, The Los Angeles Times

Palm Springs Calif.Real Estate update 12/17

California New-Home Market Breaks into Positive Territory,

CBIA Announces
December 10, 2009 SACRAMENTO – The pace of home sales at California new-home communities rose above year-ago levels for the first time since December of 2006, the California Building Industry Association reported today. The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 25 percent above October 2008, a strong improvement from the lingering year-over-year decline last month and represents the first notable increase since the start of the housing downturn. During October, 2,294 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 1,838 in October 2008. Sales of single-family homes were up by 4 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – were up 36 percent and sales of condominiums were 94 percent higher than a year ago thanks to strong sales at projects in the Los Angeles and San Francisco areas. Compared with the same period last year, the median base price of homes sold was still down, however, dropping 4 percent. Non-seasonally adjusted total new-home sales were 1 percent below levels seen last month. This is also an improvement from the 29 percent decrease seen last year for the same month-to-month period. Jonathan Dienhart, Director of Published Research for HWMI, noted the encouraging figures should be kept in perspective. “While this month’s figures are encouraging, we must keep in mind that we’re comparing the figures to October of 2008, which was the second lowest month of nominal sales we’ve seen during the downturn,” Dienhart said. “Examining the data in a rolling twelve months tells a more realistic increase, with a 1.5 percent rise from last month.” Dienhart also noted that the numbers could be distorted due to buyers rushing into the market to take advantage of a federal tax credit that was due to expire shortly after this time period. “The next two months should still show some year-over-year gains due to how weak November and December of 2008 were, but are not likely to be as large as the 25 percent rise this month,” Dienhart said. “With all the significant economic obstacles facing California home buyers, it won’t be until next year when we see if or when a true recovery may materialize.” Liz Snow, CBIA’s President and CEO, agreed and added that lawmakers should continue to look at ways to ensure a housing recovery, and a broader economic recovery, in the coming year. “It’s great to finally see a year-over-year increase after seeing sales declines for so long, but the fact that we’re comparing the latest numbers to one of the lowest sales months of the downturn still doesn’t bode well for a housing recovery in the near future,” said Snow. Snow noted that increased home sales will lead to more job-generating new-home construction and urged lawmakers to look at the benefits generated by the housing industry when taking up future legislation. “Studies show that each new home built generates anywhere from two to three jobs and produces roughly $16,000 and $3,000 in tax revenues for state and local government, respectively,” said Snow. “We hope our state lawmakers will take into account the profound economic and fiscal benefits generated by the housing industry and take action to bolster the housing sector in hopes of encouraging a broader economic recovery in 2010.”
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The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association's Web site, www.cbia.org. Hanley Wood Market Intelligence is the housing industry’s leading provider of rich data and consulting services on residential real estate development and new-home construction and is a division of Hanley Wood, LLC, the premier media company serving housing and construction. More information is available on the company’s Web site, www.hanleywood.com/hwmi or by calling 1-800-639-3777. Hanley Wood Market Intelligence (HWMI) collects data from new for-sale production subdivisions of 10 units or more on a monthly basis. HWMI Net Sales represent sales contracts signed during the period indicated minus any reported cancellations. Median and Average Prices are based upon the minimum asking price of the plans sold during the period and do not include the cost of any lot/view premiums or upgrades.

Palm Springs Calif.Real Estate update 12/17

U.S. Treasury’s Foreclosure Avoidance Program


The U.S. Treasury has released their long awaited details of the Home Affordable Foreclosure Alternatives (HAFA) program, which provides instructions for lenders and servicers participating in the Making Home Affordable, Home Affordable Modification Program (HAMP). The purpose of HAFA is to create an alternative to foreclosures for homeowners unable to successfully modify their troubled mortgage under HAMP. These alternatives are either a short sale or a deed-in-lieu of foreclosure.
In almost all cases, when a it is clear a homeowner is unable to keep their home a short sale or deed-in-lieu is preferable to a foreclosure as it moves the troubled property expeditiously through the market and does not allow it to sit and become a blight within the community.
The HAFA program simplifies and streamlines the use of short sale and DIL options by incorporating the following unique features:• Compliments HAMP by providing viable alternatives for borrowers who are HAMP eligible.• Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis.• Allows the borrower to receive pre-approved short sale terms prior to the property listing.• Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement.• Requires that borrowers be fully released from future liability for the debt.• Provides financial incentives to borrowers, servicers, and investors. This includes $1,500 for relocation for the borrower, $1,000 for the servicer to cover costs and a one-for-three matching basis to help investors payoff subordinate liens (up to $1,000)
The program begins on April 5, 2010, though servicers may choose to implement it earlier. This Directive was only for non-Fannie Mae or Freddie Mac loans up to $729,750.
The Directive also included four standard forms intended to universalize and streamline the short sale and deed-in-lieu process.
Supplemental Directive 09-09
Short Sale Agreement
Request for Approval of Short Sale
Alternative Request for Approval of Short Sale
DIL AgreementNAR Home Affordable Foreclosure Alternative FAQs