Need Help From Foreclosure Prevention Company?
HOME LOANS, SHORT SALES, TIPS FOR SELLERS
August 27th, 2010
Fannie Mae launched a website this month to assist underwater borrowersincluding those in Redding/Shasta County. The site offers advice on steps to take to avoid foreclosure as well as directing borrowers to legitimate companies that provide foreclosure-prevention services. This is in response to a proliferation of companies claiming to offer foreclosure prevention services. In many cases, these companies take your money and do little or nothing to help the distressed borrower. The web address is www.knowyouroptions.com. Here is a summary of what the site contains:
- All information is available in English and Spanish
- Video explanations detailing what each site tab might accomplish
- Contact information for mortgage companies and loan counselors
- Calculators to help determine if a borrower is eligible for assistance
- Information on foreclosure alternatives such as short sales or Deed in Lieu of Foreclosure
The news release from the California Association of Realtors also recommends another helpful site www.homeloanport.com for consumers and loan counselors to submit financial documents to mortgage companies. This site also tracks the consumers efforts to avoid foreclosure which could be helpful when considering the various foreclosure alternatives.
Please feel free to contact me with specific questions. I’m here to help!!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
Need To Refinance An Underwater Loan?
FHA LOANS, HOME LOANS, INDUSTRY NEWS, TIPS FOR SELLERS
August 13th, 2010
FHA just announced a new loan program for homeowners that owe more than the current market value for their home. In less than a month, the FHA Short Refinance program will enable some borrowers who owe more than the current market value of their home to qualify for a new FHA insued mortgage. Here are some important points:
- The loan to be refinanced can not be an FHA loan
- The homeowner must be current on their mortgage payments
- Must have a credit score of 500 or higher
- Must be the borrowers primary residence
- Existing lender must agree to write off at least 10% of the loan balance bringing the total loan-to-value ratio to no greater than 115% of fair market value
The first step for borrowers wishing to take advantage of this program would be to contact their existing lender(s) and see if they are willing to write off at least 10% of the unpaid principal balance. If so, contact a local FHA lender for more information.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
Redding Home Prices Slip Again?
SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
August 9th, 2010
After 3 quarters of relative stability, Redding home prices lost about $8/sq ft in July. Blame an onslaughtof bank-owned properties (REO’s) for the decline. The second quarter of 2010 saw a slight increase to $126.54/sq ft from $125.34 in the first quarter 2010. The last quarter of 2009 pegged the average cost per square foot at $128.08. Forty home sales for July in Redding only averaged out at $118.21/square foot.
The number of active homes for sale on the Shasta MLS for all areas of Shasta County sits at 1635 today, up from 1526 a year ago. There are 443 homes in escrow compared to 500 last August at this time. Of those pending sales, 140 are bank-owned and 119 are short sales. That works out to 58% of the pending sales being distressed properties-REO’s or short sales. Last year, 40% were distress sales.
The number of REO’s listed for sale has risen steadily from 160 the first of this year to 229 today. 1200 homes have closed year-to-date, slightly more than a year ago at this time. The Federal and State tax credits pumped up sales in the spring but have expired now leaving the market to find its own way during these difficult economic times. Record low interest rates have not motivated buyers timing their entry into the marketplace. Home equity loss due to declining values has prevented many homeowners wishing to take advantage of these rates from refinancing.
Markets elsewhere in California, specifically the coastal areas, have stabilized or experienced year-over-year double-digit appreciation noted in some areas such as San Jose. Redding is suffering under higher than average unemployment and loss of equity refugee buyers from nearby metro areas. One positive note for July is the sale and closing of 5 riverfront properties from Redding to Anderson between $405,000- $537,500!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
Do You Know Your Redding Home’s Walkability Score?
INDUSTRY NEWS, LOCAL GOVERNMENT, SHASTA COUNTY, TIPS FOR BUYERS
July 9th, 2010
Location, location, location is taking on a new meaning in the 21st century as home buyers switch from focusing on schools and neighborhoods to proximity to stores and public transportation. Urban planners cite concerns over future oil prices as the main reason for the shift. They say baby boomers with empty nests and their children buying their first home both are shying away from large lots in remote areas prefering neighborhoods near big box stores, public transportation and entertainment venues.
According to an article published recently in THE WALL STREET JOURNAL,many websites have sprung up to assist home buyers rate a property’s walkability. One such site, www.WalkScore.com allows users to enter a property address and receive a score from 0-100 pegging the walkability of the neighborhood. The scale goes from “car dependant” to “walkers paradise”.
Redding is slowly catching up to this trend with recent zoning changes that allow mixed uses for downtown area parcels. The new Kobe’s Steakhouse location is one example of allowing restaurant,offices and residential units under one roof. Unfortunately, Redding planners for decades preferred island subdivisions away from retail and commercial areas. Most Redding residents must hop in their car to go grocery shopping, take in a movie or eat out. Urban sprawl has been the norm as Redding sought to expand the city limits to gain additional land for development. In recent times, our city officials have experienced the financial pain of extending utilities, maintaining streets and providing police and fire protection to those furthest from the city’s core.
There is mounting evidence that housing prices are higher for properties within walking distance of amenities.One such study was published by the non-profit group CEOs for Cities. For each one point increase in a Walk Score values increased by as much as $3,000!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
Majority Of Californians Willing To Pay More Taxes?
INDUSTRY NEWS, LOCAL GOVERNMENT
July 6th, 2010
Apparently so according to the California Taxpayers Association(Cal Tax) reporting on recent election victories for bonds, hotel, parcel, sales and utility taxes. 44 of 64 local tax measures passed on the June 8 ballot with three more remaining too close to call. Based on these results, expect more cities up and down the state to place tax initiatives on the November ballot.
Cal Tax cited the following new tax proposals as proof local officials are cooking up new revenue schemes:
- San Fransisco Supervisors are considering a tax on commercial rents, a parking tax and an increase in the property transfer tax
- Santa Rosa is pondering an extension of the utility user’s tax to cell phones and asking area hoteliers to add 3% to the bed tax
- Los Angeles is considering a parcel tax to help fund the libraries, despite the failure just days ago of a tax measure to help schools
Redding has kicked around the idea of placing a sales tax hike on the ballot in recent times. I suspect Northstate residents would vote down any new tax regardless of the intended usage of those revenues.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
City of Redding:Know Your Hispanic Gangs?
LOCAL GOVERNMENT, SHASTA COUNTY
June 22nd, 2010
Top City of Redding officials want city employees to be on the lookout for signs of gang activity following several recent highly publicized gang incidents in the Redding area. An internal communication memo sent out last week asks city employees to keep their eyes open for gang-related activity since many employees are out and about the Redding area performing their work duties.
Anyone observing gang activity is asked to contact Sergeant Bruce Bonner at 225-4294 or Sergeant Jeff Wallace at 225-4297. I believe the citizens can aid the city by reporting suspected gang activity. Here are some facts about the gangs in question:
Nortenos
- use the number 14 for the 14th letter of the alphabet “N” for north
- controlled by the Nuestra Family prison gang
- gang attire includes red shirts, pants, boxers ,shoes, shoelaces, bandanas, hats, etc.
- call rival Surenos gang members “Scrap”
Surenos
- use the number 13 for the 13th letter “M” which stands for Mexican Mafia
- The Mexican Mafia is the prison gang that controls all Sureno street gangs
- gang attire includes blue shirts, pants, boxers, shoes, shoelaces, bandanas, hats, etc.
- call rival Nortenos gang members “Buster”
More resources have been assigned to this problem according to City Manager Kurt Starman and Police Chief Peter Hansen. They hope to squelch these gangs quickly before they get a foothold in the Redding area. Let’s all help the city in their efforts to stamp out these gangsters!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
Unscrupulos Interests Blamed For Housing Market Meltdown
INDUSTRY NEWS, SHASTA COUNTY
June 11th, 2010
Henry Cisneros pinned the housing crisis on greedy Wall Street firms, not government policies he championed as HUD Secretary during the Clinton Administration. Exotic instruments were created to collateralize mortgages then packaged and sold around the world by profiteers wishing to take advantage of the housing boom. Henry is credited with expanding homeownership during his term as HUD Secretary from 1993-1997.
He also believes insurance agencies that rated these new financial instruments failed to accurately assess the riskiness of these investments. Cisneros addressed a group of real estate editors recently in Austin, Texas. However, he did place some blame on government’s unwillingness to regulate risky financial instruments during the Clinton and Bush Administrations.
Many have blamed the government for policies designed to increase homeownership among minorities for causing the housing bubble. Few would disagree that Fannie Mae and Freddie Mac facilitated the crisis by buying, repackaging and selling mortgage-backed securities that fell short of previous standards. Whistle-blowers at Fannie Mae alerted superiors that loans being presented by banks for purchase were not underwritten to their standards.
I believe there is plenty of blame to go around. If any of the players necessary to create this fiasco would have done their job, this crisis would have been averted. Overzealous lenders, Wall Street investment bankers, insurance companies and government regulators all failed to protect the integrity of time tested policies designed to prevent just such a tragedy. Unfortunately, few will be punished leaving them to enjoy their millions in profits as long as they live in this world.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
Redding Real Estate Prices Stabilizing?
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS
June 7th, 2010
According to one Redding appraiser who tracks average home prices, prices are slowly ticking upward. The low point since the bubble burst in 2006 was March with 91 home sales with an average sales price of $203,830 or $121.08 per square foot. May saw 99 home sales averaging $214,352 or $124.6 per square foot. It would not be unreasonable to say the market is showing signs of stability especially if we’re talking about entry level homes priced below $250,000.
Inventory of available homes on the Shasta Multiple listing service is 1552 today, up from early January’s low of 1301. Pending home sales sit at 467 today, down from the peak of 529 the first week of May. This is likely due to the rush to buy before federal tax credits expired at the end of April. Closed sales for residential properties in 2010 total 824 units thus far.
Nearly 200 homes listed for sale are bank-owned homes, an all-time high for this market cycle. Another 248 homeowners are short sales or pre-foreclosure homes. 141 bank-owned properties are in escrow. 137 short sale listings are also in escrow. These two categories of distress sales represent 60% of the pending sales activity but less than 30% of the active listings.
Shasta County is still experiencing a high number of properties working their way through the foreclosure process. Unemployment is dropping slightly but remains nearly double the national average. Mortgage rates dropped unexpectedly due to European financial turmoil causing investors to move money into US securities. The 30-year fixed rate is around 4.75%!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
Bill To Provide Borrowers Deficiency Liability Protections
INDUSTRY NEWS, REAL ESTATE LEGISLATION, SHASTA COUNTY, SHORT SALES, TIPS FOR SELLERS
May 24th, 2010
Many homeowners are not aware of a loophole that allows banks to pursue certain borrowers for any cash loss they suffer as a result of a short sale or foreclosure. The existing law, which was passed in the 1930’s, protects homeowners from deficiency liability if the loan was used to purchase the home. The problem arises when the loan is refinanced. The protection does not apply to purchase money loans that are later refinanced, even if doing so allowed the borrower to benefitfrom a lower interest rate.
Senate Bill 1178, authored by Senator Ellen Corbett, does not protect borrowers that used cash-out refinances or equity lines to pay bills or buy cars, boats, RV’s or stock investments. Only borrowers that used cash generated from a refinance to improve their primary home would be protected by this bill if it passes. Most borrowers were unaware that a refinance caused a forfeiture of this liability protection. In legal terminology, purchase loans are non-recourse loans while refinanced loans are recourse loans.
Banks doing business in California understand that the property is the security for the loan, not the borrower. Purchasers that later refinanced had no idea they were losing this protection exposing themselves to personal liability and even new tax liability. Lenders can pursue the loss for up to ten years after a foreclosure or short sale. They can sell the accounts to aggressive collection agencies or bundle them as securities. This allows banks, which created this mess to begin with, to add insult to injury by chasing families that have already lost their home for money they don’t have.
Call your local State Senator and ask him or her to vote yes on SB 1178. In our area, call Senator Sam Aanestad at 530-225-3142.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
Mosquitoes Bugging You?
LOCAL GOVERNMENT, SHASTA COUNTY
May 20th, 2010
The wave of foreclosures in Shasta County has had a stinging side effect-abandoned pools and ponds have become mosquito breeding havens! If you know of a neglected water feature in your neighborhood, the Shasta Mosquito and Vector Control District would like to hear from you.
Every property owner in Shasta County pays for mosquito control through an assessment on their property tax bill. The district needs your help identifying problem pools and ponds that become production grounds this time of year for mosquitoes. These insects can potentially spread viruses including West Nile Virus.
Contact the district at 530-365-3768 and provide them the address of a property you are aware of which has an abandoned pool or water feature. They will investigate and attempt to contact the owner or bank to gain permission to evaluate the situation. If necessary, the district will treat the problem using guppy-like fish that eat mosquitoes or possibly a chemical larvicide will be applied. There is no charge for the service.
Besides inspecting and treating pools, the district also surveils disease by taking blood samples from chickens and sick or dead crows, magpies and jays which are first indicators that West Nile Virus is in the area. Other targets include ticks which can spread Rocky Mountain Spotted Fever and Lyme Disease.
The district needs your help because warmer weather perfect for breeding millions of mosquitoes is just around the corner. You can help make your outdoor leisure activities safer and more enjoyable by reporting neglected or abandoned pools where you live.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVIN REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
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