Category Archives: short sale

Home Sales Up Year-Over-Year

Home Sales Up Year-Over-Year | Keeping Current Matters

Some Highlights

  • This is the 48th consecutive month with year-over-year price gains.
  • Lawrence Yun, NAR’s Chief Economist says that, “The main issue continues to be a supply & affordability problem. Finding the right property at an affordable price is burdening many potential buyers.”
  • Inventory is still below historic norms at a 4.4 month supply.

Home sales in a lull, median sales price stalls, inventory hovers over 3,400

OCTOBER  2014 RESIDENTIAL SALES STATISTICS

Sales volume decreased for the third straight month, closing with 1,375 single family home sales. This is down 1.5% from the 1,396 homes sold last month. Month‐to‐month since July, sales have decreased 1,548 – 1,428 – 1,396 – 1,375, respectively. Compared with last year, the current figure is down .8% (1,386 sales). Making up this month’s total are 1,208 Equity Sales (87.9%), 83 Short Sales (6%) and 84 REO sales (6.1%). For the month, REO sales remained the same, short sales increased 17.6% and conventional sales decreased 1.1%.

Of the 1,375 sales this month, 256 used cash financing, 654 used conventional (mortgage‐backed) financing, 312 used FHA (Federal Housing Administration), 89 used VA (Veteran’s Affairs) and 64 used Other* types of financing. The average DOM (days on market) for homes sold this month was 37, while the Median DOM was 23. These numbers represent the days between the initial listing of the home as “active” and the day it goes “pending.” Breaking down the Days On Market, there were 816 listings that sold between 1 – 30 days, 293 listings that sold between 31 – 60 days, 148 between 61 – 90 days, 69 between 91 – 120 days and 49 sold after being on the market for over 120 days. This breakdown, as well as types of financing, is show in the graphic below.

October 2014 Housing Stat

The month‐to‐month median sales price decreased 1.1% from $275,000 to $272,000. The current level is 7.3% above the $253,500 median sales price of October 2013. The current figure is up 70% from the January 2012 low of $160,000. When compared to the all‐time high ($392,750/Aug. ’08), the current figure is down 30.1%.

Active Listing Inventory in Sacramento County decreased 2.7% for the month to 3,434 listings, down from the 3,529 listings of September. Year‐to‐year, the current number is up (29.1%) from the 2,659 units of October 2013. The months of inventory remained the same at 2.5 months.

Tackling Tricky Cleaning Jobs: 7 Jobs Just Got Easier

clean house funnyThere are a few tricky cleaning jobs universally dreaded for being time-consuming, hard, or just plain confusing. How are you supposed to clean off a ceiling fan without getting dust all over the house and your head? How do you clean a fireplace without creating an indoor dust cloud? The tips below won’t make any of these jobs fun, exactly, but they will make them quicker, easier, and maybe even tolerable.

 

 

Ceiling FanCeiling Fans
Put a drop cloth or old sheet on the floor and furniture over an area about twice the radius of the fan blades. If you want to keep your hair dust-free, pop on a hat as well. Use an old pillowcase to dust blades, sliding the case around the blade so the dust falls into the case. Make a second pass over each blade with a new pillowcase, this time spraying each blade first with a cleanser (a spray bottle of water and two tablespoons of white vinegar works too.) Hop on a sturdy chair or ladder and wipe around the rest of the fixture with a dust cloth or use a long handled micro-fiber duster.

RefrigeratorRefrigerator–Interior
To clean the interior, first take everything out the fridge. Remove shelves, bins, and drawers and wash in warm soapy water (don’t plunge cold glass shelves directly into hot water because they might shatter). Wipe down interior with a mixture of two tablespoons baking soda and a quart of hot water. For extra cleaning power, let mixture sit for a few minutes before wiping off. Use a plastic–not steel wool–scouring pad for stuck-on food and spills. Clean seals with a baking soda paste or undiluted hydrogen peroxide, getting into crevices with cotton swabs. While interior parts are drying, wipe down jars and containers, removing drips and spills. Check expiration dates and toss any out-of-date items. Follow the same procedures for the freezer, adding a plastic scraper to remove frozen-on ice or food.

 

 

 

refrigerator interiorRefrigerator—Exterior
For the exterior of the fridge, wipe down the outside surfaces with soft cloth and a gentle cleaner. Use a toothbrush or plastic scouring pad for grime on handles. Unplug the fridge to clean the condenser and coils. Remove the trim panel from below the door (you may need to unscrew it.) Vacuum or dust the panel, or if it’s plastic, soak it in warm soapy water to loosen dirt. Using the brush or crevice attachment, gently vacuum dust from coils and condenser. You might need to move the unit away from a wall to get at the back. When you put it back, make sure to leave enough space between coils and wall so the unit can run efficiently.

 

baseboardsBaseboards
Make a first pass over the boards with a dust mop, vacuum or a dusting cloth. If there’s leftover grime, wipe down with damp cloth and mild detergent. Use wood cleaner for wooden baseboards. Try a cotton swab to get at intricate designs and corners. Touch up scuffs and scrapes with a bit of matching paint. Finish off by wiping down clean, dry baseboards with dryer sheets to repel future dust.

fireplaceFireplace
Prepare for the job by donning old clothes and a pair of gloves. Cover the area around the fireplace with old sheets or newspaper. Remove grate and andirons and put outside on a tarp. Put a handful or two of used coffee grounds into the ashes to minimize flyaways, then shovel out the old ashes and put in a double-bagged trash can. Use the fireplace brush to sweep up remaining ashes. You can scrub the inside further by scraping with a wire grill brush and a fireplace cleaner, if desired. Clean the andirons and grate with the wire brush and a hearth cleaner or a paste of baking soda and warm water. Let everything dry thoroughly before putting back in.

groutGrout
Grout can be a challenge to clean because it’s porous and often light-colored. To clean, you will need a cleaning agent and a scrubbing tool, like a scrub brush or toothbrush. Use a baking soda and hydrogen dioxide paste, a half and half solution of white vinegar and water or a mix of oxygen bleach and warm water. Spray or apply the solution to the grout and let sit for about 20 minutes. Scrub the grout, reapplying the solution for tougher stains. For mold that won’t come off, you can use a chlorine bleach spray, but the bleach will weaken the grout over time. To maintain your grout and delay another deep cleaning, spray weekly with vinegar and wipe clean.

blindsBlinds
Gentle vacuuming with a brush attachment works for all types of blinds, including cloth, wooden, and metal/vinyl blinds. Close the blinds so they’re fully extended and brush each slat individually, working downward. Swivel the slats to do the other side, again moving downward. You can also dust with a micro-fiber cloth or a duster. Again, you have to go over each slat, front and back. For dingy vinyl and metal blinds, make a mixture of one part vinegar and one part water and go over each slat with a dampened cloth or, for more flexibility, an old sock turned inside out and worn on your hand. Cloth blinds can be spot treated with a damp cloth and a bit of dishwashing liquid. You can cut down on scrubbing time by removing metal and vinyl blinds and taking them to the bathtub or outside to hose them down, then scrubbing with warm soapy water, but you run a greater risk of bending or breaking the blinds. Make sure the blinds are fully dry before rehanging.

FHAs Back to Work Program Waives Waiting Times

(Courtesy NKS Financial)

image
Purchase again sooner than you think

The Federal Housing Administration (FHA) recently announced its “Back to Work” program, which is giving individuals who suffered a long period of hardship during the recent housing crisis a second chance to prove they can carry a mortgage and own a home.

The program will waive many of the waiting periods associated with a significant “economic event” such as bankruptcy (Chapters 7 and 13), short sale or foreclosure.

Potential candidates may be first-time or repeat home buyers, and the program can be used for the 203K rehab loan. It must be approved by an FHA lender, and as some lenders are choosing not to participate, you may want to contact your mortgage professional for more information on this.

Eligibility

To participate in the program, individuals must be able to demonstrate they’ve recovered fully from the “event”, and document the fact that they did have a household income loss of at least 20 percent for a period of at least six months that coincided with the “event.” They also need to prove current, stable and documentable employment to qualify.

As well, they need to demonstrate a 12-month positive payment history, and this specifies on-time payment of all mortgage and installment debt. There is some latitude for credit card debt, but it is slight.

Counseling sessions

Applicants also must attend counseling sessions before being able to participate in the program. This is usually a one-hour session with a HUD-approved counselor, and was designed to help participants prevent the “economic event” from happening again.

Improve Your Chances in Multiple Offer Situations

multiple-offers, Sacramento Listing Agent, Elk Grove Listing Agent
multiple-offers, Sacramento Listing Agent, Elk Grove Listing Agent
(Guest article, Dian Hymer – Client Direct)

Some buyers in hot markets with a low inventory of homes for sale are losing out over and over in multiple-offer competitions. You can improve your chances of having an offer accepted by clearing up any issues that might cause a seller to look askance at your offer when compared to one from another buyer.

If your purchase offer is littered with contingencies that protect you, the sellers are more likely to see the contract as risky, especially if they are looking at other offers that contain fewer contingencies.

A clean contract is free of contingencies, which can give buyers a competitive advantage, especially if they are offering less than full price or are in competition with other buyers.

Timing is everything in the home sale business. Buyers often lose out on the opportunity to make an offer on a listing because they are traveling for business or vacation. One partner may see the home of their dreams, but the other won’t be back in town to take a look for days or weeks.

Making an offer contingent on the absentee buyer’s approval of a property is risky from the seller’s standpoint. If the seller accepts the offer, he takes his home off the market not knowing if the absentee buyer will like the house enough to buy it.

It would be very difficult to get such an offer accepted if there are multiple offers from buyers who have all seen the property. The Internet can give a great introduction to a listing, but it usually doesn’t include photos of items that might cause you to pass on the property, like a neighbor’s home that is in poor repair or a location close to a noisy freeway.

Some buyers buy property without having seen it. To get an offer accepted, these offers usually have a generous price, and close quickly. The buyers may later find problems that they could have discovered had they seen the property before making an offer. It’s better for both buyers and sellers if all potential buyers have seen the property before an offer is made.

HOUSE HUNTING TIP: Try to anticipate if there is any condition of your home purchase that would cause the sellers to shy away from accepting or countering your offer. If such conditions exist, try to address them before you make an offer.

For example, let’s say your parents are willing to give you a large amount of cash for a down payment to make your offer more competitive. Make sure this will be acceptable to your mortgage lender.

Find out what verification the lender will require from your parents. If the lender needs a gift letter that stipulates you don’t need to repay the money, have your parents write this letter and include a copy with your offer.

Sellers are always concerned about the buyer’s financial capability to close the transaction. Your offer should include a letter from your lender stating that you are preapproved for the financing that you need. The letter should stipulate that the lender has verified the cash you need for the down payment and closing costs.

If the verification of funds needed to close is not included in the preapproval letter, make a copy of a bank or brokerage statement that verifies the amount you need. Black out the account number and include a copy of this with your offer.

In some areas, buyers are making offers without any contingencies. That is as clean as it gets. However, there can be problems with contingency-free offers. Buyers can feel pressured into waiving an inspection contingency because they’re sure they can’t compete unless they do. The sellers could end up in a legal hassle with the buyers after closing if problems arise that weren’t disclosed to them.

THE CLOSING: Buyers should ask the sellers for permission to preinspect the property before they make an offer without an inspection contingency.

Real Homeowner Stories: A Miracle in the Form of a Red Envelope

Elk Grove Short Sale Agent, CDPE
Elk Grove Short Sale Agent, CDPE

For homeowners who are in danger of losing their home to foreclosure, it is common to feel like you are alone and that there is no one to help. This simply isn’t true. There are real people who have been in the same situation who have found solutions. Take, for example, Punipuao W. of Hawaii.

Punipuao found herself struggling to keep her home after her husband passed away. “With only my income, I was no longer able to make my monthly mortgage payment,” she said. Faced with the prospect of losing the home she and her husband had bought together, she began looking for alternatives to help her keep the home.

She pleaded with the bank for relief, “but their responses gave me little information and even less hope.”

The prospect of losing the home she and her husband had shared for over 20 years was difficult. “I was so distraught,” she said. “I did not know where to turn.

“Then, one day, my miracle came through a red envelope in the mail.”

In the envelope was a note from a local real estate agent with the Certified Distressed Property Expert designation (or CDPE). This designation meant that the agent was trained specifically to help people like Punipuao. She called the agent.

“About four hours after I made the call, he was at my door offering help. I told him my story.” In merely two days, she received a call from the bank saying that the president of the bank was reviewing her file. “That was a good sign,” she said.

A few days after that, Punipuao had been approved for a trial loan modification. “There were many tears of gratitude at the miracle that came to me in the form of my agent. I thank god for sending me that miracle.”

Punipuao’s story is just one of many. I have a report entitled “From Foreclosure to Freedom” which tells other stories of real homeowners who faced foreclosure and found relief. Download the report, read the stories, and then contact me for a free, confidential consultation.

Dress Your Home For Success

Whether it’s an Open House, or simply presenting your home in the best light, it is necessary to view it from the eyes of a buyer!  Any money spent in this area may result in increased profits and a faster sale.

Maximizing Curb Appeal
Before potential buyers even see what the home has to offer, they view its exterior.  As a result, an unkempt or unattractive view of the outside of the home could potentially result in a missed opportunity.  To show the house in its best light, consider the following:

* Move all materials, including garbage cans and gardening supplies, from the front yard and into a garage or shed

* Mow the lawn and weed and maintain all planted areas

* Replace any outdoor light bulbs that are not working

* Sweep walkways and steps, and remove all small items from the porch or patio

* Replace worn or badly stained door mats

Once a potential buyer enters the home, they need to determine if it will meet their needs and expectations.  Give them the best view of the home’s interior by following these steps:

* Remove the home of any clutter by limiting decorative objects and clearing all unnecessary appliances from the kitchen countertops

* Rearrange or remove furniture to highlight the space in a room

* Review each room and clean or vacuum if necessary

These tips can help ensure you receive the highest price possible for your home.

There may be money available for you under the National Mortgage Settlement

Elk Grove Short Sales -Mortgage Rescue
Elk Grove Short Sales -Mortgage Rescue
Recently, well last year, I wrote about both the National Mortgage Settlement (In February 2012, 49 state attorneys general and the federal government announced a historic joint state-federal settlement with the country’s five largest mortgage servicers), and the Independent Foreclosure Review (Ten mortgage servicing companies subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing reached an agreement in principle with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board to pay more than $8.5 billion in cash payments and other assistance to help borrowers).

Today I received an e-newsletter from BPE Law Group which summarizes the most recent happenings with both lawsuits settlements. I thought it was very well put together and so I’m sharing it with you below. I highly recommend BPE Law Group (info at the end of this post) should you have any further questions regarding these legal matters, and how they might affect you.

************

If your loan was owned or serviced by any of the settling banks – BofA, Wells Fargo, Chase, Citi, or Ally – and your home was foreclosed upon between January 1, 2008 and December 31, 2011, you may be eligible to receive a cash payment as part of the settlement. A settlement administrator has been appointed to accept claims and to oversee the distribution of settlement payments.

Claim forms must be submitted by no later than January 18, 2013.

The easiest and fastest way to submit your claim is online.
Go to: https://nationalmortgagesettlementclaim.com/ and follow the instructions.

Information about the settlement administrator is also available at: www.nationalmortgagesettlement.com. The e-mail address for the administrator is administrator@nationalmortgagesettlement.com The administrator can also be called toll-free at 1-866-430-8358.

——

In addition, a separate Program had been lauched previously creating a Independent Foreclosure Review for those who may have been foreclosed between 2009-2010. However, the processing has been a nightmare. Last week, a Settlement was reached whereby the settling lenders agreed to pay $8.5 Billion to a fund and the Foreclosure Review was shut down. Within the next few weeks, a process will be set-up to submit claims. Watch your mail box for more. You can learn more at: http://www.federalreserve.gov/newsevents/press/bcreg/20130107a.htm

——

None of the above Settlement programs bars a foreclosed party from asserting separate damage claims against their lender, assuming they have the financial capacity to do so. A few Class Action lawsuits have been set up around the country although they, like individual lawsuits, appear to be bogged down in the Courts.

If you have questions concerning your rights and possible recovery against your lender, you may want to have a follow-up consultation with us.

This home loans crisis is destroying hopes and dreams and families across our nation. If you know anyone struggling with these problems, please do them a favor and pass this newsletter along to them. We have a flat fee $200 consultation that guides you in identifying the problems and risks and creates a strategy to deal with them. A similar program is being set-up for Commercial Property Owner Consultations.

Steve Beede, Founder and Managing Partner
BPE Law Group, Inc.
Main: 11140 Fair Oaks Blvd., Suite 300, Fair Oaks, CA 95628
Satellite: 9245 Laguna Springs Dr., Suite 200, Elk Grove, CA 95758
(Appointment Only)
(916) 966-2260
—end

Don’t miss out on an opportunity to get your financial house in order.

Foreclosure: What It Really Means & How To Avoid It

Foreclosure: What It Really Means & How To Avoid It.

Ten Tax Tips for Individuals Selling Their Home

The Internal Revenue Service has some important information to share with individuals who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may qualify to exclude all or part of that gain from your income. Here are ten tips from the IRS to keep in mind when selling your home.

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.

2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

4. If you can exclude all of the gain, you do not need to report the sale on your tax return.

5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.

6. You cannot deduct a loss from the sale of your main home.

7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.

8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.

9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.

10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

For more information about selling your home, see IRS Publication 523, Selling Your Home. This publication is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).