Archive for October, 2009
What Will A Million Get You In Redding? 832 Santa Cruz!
SHASTA COUNTY, TIPS FOR BUYERS
Quite the value, relatively speaking! For starters, this Street of Dreams home sits on a ridge overlooking Redding, the valley and the beautiful western range. Featured last year on the cover of FROM HOUSE TO HOME magazine, this sprawling estate is situated in the gated community of Standford Hills on the northwest boundary of Redding.
The main residence, nearly 4400 square feet of elegant living space in all, includes a home theatre, 4 bedrooms, 3 baths, office and 2 half baths. Travertine flooring, marbled columns framing the arched entryway, multi-dimensional architectural ceiling designs combine to create interesting focal points. Slab granite counters with tumbled travertine back splashes grace the island kitchen with professional grade stainless steel Thermador appliances.
The master suite includes a huge walk-in closet, sauna, whirlpool tub, honey-glazed cabinetry topped with honed granite counters and shower with glass block wall divider. There is also a generous laundry room with walk-in pantry and a 3-car attached garage with 2 additional storage rooms. Step out onto the large covered patio overlooking tropical palm trees, rock lounges and infinity pool. Vacation in the luxurious backyard that resembles a tropical paradise! The rolling hills above the Sacramento River serve as a backdrop for this exquisite abode.
Follow the pathway past the babbling brook to the detached 830 square foot guest house. Used as an artist studio by the previous owner, no expense was spared in the construction of this cottage on par with the main residence. Find a fully contained living space with slate flooring,huge picture windows, wired for sound, a bedroom with separate walk-in closet, full bathroom and a kitchen that would make gourmet cooks feel at ease. Attached is an over-sized 2-car garage and separate storage room with access from the securely gated parking area. Exit the slider to the private multi-tiered trellis-covered patio with hand-crafted river rock fireplace. Wander past the trampoline area to the fire pit overlooking Redding and river canyon to the south and the South Cascade Range including 
Mount Lassen to the east.
Purchased new in 2005 for $1.5 million, the previous owner added the guest home, garage and additional landscaping. Nearly $2 million invested, agressively priced at $995,000 or $191/square foot! Contact me for a private showing.
For additional pictures of this unique, private estate offering, click here:
http://www.visualtour.com/shownp.asp?sk=13&t=2034343
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
New Credit Score Threshold-620
Fannie Mae is once again setting the ground rules for mortgages they will purchase from lenders and starting in a few weeks, borrowers better have a credit score at or above 620. This will apply to conventional loans as well as FHA and VA loans insured by the government. Additionally, if you want the best rate and terms, you’ll need a credit score around 720 or higher. This applies to purchases and refinances.
Gregory Karp, reporter for the Chicago Tribune, offered a few tips for borrowers:
- Avoid mortgage brokers unless you need “hand holding”. New appraisal rules make shopping a loan difficult for brokers plus there are additional fees to be paid for the broker’s services. The rule limiting mortgage brokers revolves around the appraisal-lenders can not accept an appraisal from commissioned brokers. Thus, a loan broker would have to order a new appraisal for every lender the loan is presented to. Costly and inefficient-according to the author.
- Shape up your credit. Getting a loan approved today is the most difficult its been in decades. Pay bills on time and pay off as much debt as possible. The formula for calculating credit scores is secret, but these two items account for the largest part of your credit score. He also recommends you not close old credit card accounts and keep your credit usage as small as possible. Check your credit report for errors at: www.annualcreditreport.com
- Apply for a fixed-rate mortgage-One of the main reasons for the real estate crash is the increased usage of adjustable rate loans. They were easier to get, but many borrowers ended up choking once the payments started adjusting leading to foreclosures. Fixed rate loans will not have payment variations due to interest rate changes.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Shasta County Real Estate Fraud Cases Discussed
LOCAL GOVERNMENT, REAL ESTATE PRACTICE, SHASTA COUNTY, TIPS FOR SELLERS, TIPS FOR SENIORS
Robert Angulo is the investigator recently assigned by the DA’s office to handle real estate related crimes.
Robert spoke to a group at the Shasta Association of Realtors weekly meeting Wednesday. The real estate fraud unit has been up and running for just a few months and is already handling 31 cases. Here is a summary of cases being investigated or prosecuted:
- Property management company being operated by individual that does not have a real estate license or a trust account to handle tenant deposits and rent. This case goes to trial in November.
- Another property manager that committed grand theft, embezzlement and grand theft from an elderly person. Amount lost was reported at $40,000.
- Person creating false deeds. This person first created a deed to get the property out of his name and into the name of his girlfriend because he was incarcerated and didn’t want his neighbor, with whom he had disputes, to take his property. He later created another deed to put his name back on the property. He used false identification to get the documents notarized. This is a felony.
- Florida loan modification firm took $2,700 from a county property owner for loan modification services but did nothing. Robert found out the Florida Attorney General was already involved in prosecuting this firm so no action will be taken locally.
- Craigslist-Nigerian scam artists are using properties advertised for sale on Craigslist to create rental ads. Potential tenants are baited with really nice homes for cheap rent if they would just wire the funds to the scammer. Of course the home is not for rent and the money will be lost once sent. If it’s too good to be true, it’s probably a scam.
Robert also did a cross-check of all the property management companies in the phone book and found 8 that were being operated without a real estate licensee. In fact, most of the real estate fraud investigated thus far involved unlicensed individuals.
He also encouraged those in attendance to contact his office if anyone hears of someone being victimized by fraudsters or sees an ad for loan modification services that require an upfront fee or if our clients have strangers knocking on their door asking about the home for rent or asking them to leave because the bank has foreclosed. These are all scams that are happening here and elsewhere across the state and country.
Robert can be reached at 530-245-6350 or rangulo@co.shasta.ca.us.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
California Real Estate Law Changes Highlighted
INDUSTRY NEWS, REAL ESTATE LEGISLATION, TIPS FOR BUYERS, TIPS FOR SELLERS
The first half of the 2-year legislative session is in the books and here is a summary of new laws that impact those
involved with real estate transactions:
- Buyers of REO’s (foreclosures) can choose the escrow or title company. Prior to October 11, 2009 REO lenders routinely dictated where the escrow would be handled. Breaking this new law can result in a fine equal to triple the charges the buyer incurred and if the real estate agent insisted on a particular company he or she shall be subject to disciplinary action against their real estate license. This law expires January 1, 2015.
- Agents or attorneys can no longer charge any upfront fees for loan modification services. The Department of Real Estate and State Bar Association have received numerous complaints from borrowers that have paid for assistance and received little if any help. This law is an attempt to put scam artists out of business. This law sunsets January 1, 2013.
- Real estate agents that originate mortgage loans must obtain a license endorsement beginning December 2010. To obtain an endorsement, agents must complete education, testing and reporting requirements.
- Mortgage Broker Activities redefined-Starting January 1, 2010, mortgage brokers will be deemed a fiduciary meaning they must put the interest of their client’s economic interest above their own. Real estate agents have had this fiduciary requirement for decades, now mortgage brokers will have the same duty.
- Appraisal Industry Oversight-The Home Valuation Code of Conduct (HVCC) prompted the requirement that someone oversee the appraisal management companies that have sprung up this year in response to this new code. The Office of Real Estate Appraisers will have regulatory oversight including registration, fingerprinting, and background checks. This law also better defines what conduct constitutes improper influence of the appraiser including threats to withhold compensation or deny future business or promise future referrals if the appraiser does what is asked.
- Mortgage fraud is now a state crime under California law. Violators are subject to 1-year prison term. Federal law adds a $1 million fine. Fraud is defined as making a material misrepresentation or omission during the loan process.
- Increase in Homestead Exemptions- Beginning in 2010, judgement creditors will be faced with additional protection of home owner’s equity to the tune of $75,000 for individuals and $100,000 for married couples and $175,000 for persons over 75 years of age. Homeowners must formerly file a Homestead Declaration to protect their equity from creditors.
- Landlords must give 60-day notice to terminate a month-to-month tenancy with a term greater than one year. 30-day notice will suffice for tenants that have rented for less than one year. The law was scheduled to sunset January 1,2010 but has been extended indefinitely.
Other new laws impact tenants of properties where the landlord has past due utility accounts, who can sell a mobile home in a park, swimming pool anti-entrapment devices, Mechanic’s Lien laws, low water-using plants, reverse mortgages, disposal of abandoned records that include personal information and plumbing fixture retrofits. Call me if you have any questions on these new laws.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Upfront Loan Mod Fees Banned
INDUSTRY NEWS, REAL ESTATE LEGISLATION
Governor Schwarzenegger signed SB 94 into law a couple days ago which, among other things, prohibits anyone from taking an advance fee for promised loan modification services. Prior to this bill’s enactment, attorneys and some real estate agents could charge borrowers an upfront fee typically ranging from several hundred dollars to several thousand dollars for promised loan modification services.
The problem that unfolded when these individuals or companies offering assistance to distressed borrowers would collect a fee and do little or nothing leaving the client in a deeper financial hole than before. Rather than hire someone to negotiate a loan modification, borrowers should work directly with their lender to seek a rewrite of their loan terms. The modification typically involves converting an adjustable rate loan to a fixed rate, reducing the interest rate and/or extending the term which lowers the monthly payment. Borrowers should seek a reduction in principal if the property is worth less than what is owed. More lenders are willing to consider a reduction in principal in light of the fact many loan modifications are failing because borrowers still can not afford the revised payment.
In the event borrowers need assistance with a loan modification, they should seek out non-profit credit counselors or governement organizations set up to assist homeowners. HOPE NOW is one such organization. The bank bail out package includes incentives for lenders assisting borrowers seeking loan modifications. Now that banks have shored up their balance sheets, they should be more cooperative with borrowers seeking loan modifications involving loan balance reductions.
Call law enforcement if anyone asks for a fee upfront to assist you in a loan modification. The Department of Real estate is currently investigating more than 1300 complaints regarding loan modification fraud. Don’t pay anyone anything, it’s the law!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Banks Eat Loan Principal To Help Borrowers In Trouble
HOME LOANS, INDUSTRY NEWS, TIPS FOR SELLERS
Borrowers seeking loan modifications are more likely to get a bank to agree to reducing the outstanding loan balance today than earlier this year. The rate of reducing the principal as part of a loan modification has more than tripled from 3.1% to 10% from the first to second quarters of 2009.
According to a new report from two government agencies responsible for overseeing financial institutions, banks found reducing interest rates or extending loan terms only temporarily helped borrowers in trouble. In fact, more than a quarter of borrowers that were granted a loan modification redefaulted within three months because they still could not afford the revised monthly payment.
According to the news release from the California Association of Realtors, one reason banks have started reducing the amount owed on mortgages is due to prodding from the Obama administration. The president has included financial incentives in his housing plan to encourage lenders to work with borrowers underwater on their home loans. Another fact cited is banks are shoring up their finances which gives them more latitude to help borrowers wishing to keep their homes.
In my opinion, 10% is still too low to really stem the tide of foreclosures. More than 20% of the mortgages in these United States are upside down so this is a step in the right direction but we still have a long, rough road ahead.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Life Equals Risk
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We finish strong for each client.
Call 530-224-6700 for details
Short Sellers Dealt A Blow
HOME LOANS, REAL ESTATE LEGISLATION
Senate Bill 306 will not require lenders to review or respond to short sale requests from sellers and their agents. This bill was allegedly mischaracterized by practitioners as much needed legislation requiring a 21-day turnaround for short sales approvals. This bill actually requires lenders to respond within 21 days with a payoff demand when requested.
What this law really does is require lenders to provide the loan payoff within 21 days on an approved short sale. My experience has been lenders ususally provide the demand within a day or two of short sale approval. Apparently there was no law specifying when a payoff must be provided. Non-short sale lenders are required to provide a payoff to an escrow company within 21 days of a request. This law extends that to short sales.
Practitioners such as myself would love a law requiring mortgage holders respond within a 3-week time period. Currently, 3 weeks is the quickest one can expect a bank to respond but 3 months is the more likely time frame. I’ve been told that asset management companies that handle negotiations on short sales for the bank are paid by the hour, so it is in their best interest to prolong the process to enhance their profits. Others speculate that banks may benefit more by foreclosing and writing off the loss than working in good faith with homeowners underwater on their mortgage.
Another provision of this bill allows escrow companies to close escrow even if the bank has not approved the final closing statement (Hud-1) as long as it is “not clearly contrary to the terms of a short sale agreement.” Typically, banks provide a payoff demand that signifies the short sale approval and a specified amount of time to close the transaction. The escrow holder is required to submit a closing statement a few days before closing for bank approval. Some banks apparently are slow to return the approved HUD-1 delaying the closing even if the net proceeds to the bank are in agreement with the original estimated closing statement. The new law takes effect January 1, 2010.
530-224-6767 or 530-941-7492
Not Sure You Are A First Time Homebuyer?
REAL ESTATE LEGISLATION, TIPS FOR BUYERS
Just Do It ..Now
Of course if you’ve never owned a home the answer is obvious …yes you are…
Haven’t owned a home in 3 years? ….yes you are
Renting with a good income? …yes you should …
In reality there is less than a week to be able to grab onto the Federal Credit….has to close escrow by Nov 30th to qualify …not be in escrow
Don’t wait too long ….
2010 California Housing Forecast Released
Lead economist for the California Association of Realtors (CAR) addressed agents from across California at the annual convention in San Jose. Leslie Appleton-Young predicted home prices in California to increse 3.3% in 2010 to a median price of $280,000. However, the number of housing units sold is expected to decline 2.3% to 527,500 units compared to 540,000 units projected for 2009.
CAR President Jim Liptak added “California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming on the market. This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.” He went on to say “2010 will mark the beginning of a ‘new normal’ for California’s housing market”. He expects demand for low-end priced distress properties to drive a “steady stream of sales”.
Leslie expects distress sales to represent 1/3 of sales activity and supply to be lean in the winter and increase in the peak buying season. Leslie also likes to list wild cards that can derail her forecasts. These include “foreclosures, loan resets, the labor market, the California budget crisis and actions by the federal government.”
She may be referring to the fact banks are sitting on many foreclosed properties which could impact supply and demand depending on when and how many are placed for sale in 2010. The loan resets she is referring to are for Alt-Aloans that are the next tier up from subprime loans. Most of the subprime loans, made to buyers with low credit scores, have either been refinanced or foreclosed upon.
Now we are dealing with the next group, Alt-A loans, which fall between the prime and subprime loan categories. Unemployment could cause even the most credit worthy buyers to lose their homes due to income loss or reduction. California’s budget woes could spur more taxation pushing more people and businesses from California. Federal programs assisting homeowners underwater with loan modifications or tax credits for home buyers can impact next years sales activity.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL SALES EXPERIENCE
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