San Diego Real EstateCarylee Stone

OPEN HOUSE THIS SUNDAY

2011-10-15T21:39:00.000-07:00

JOIN ME on Sunday, October 16, 2011 from 1:00–4:00 pm

4S Ranch :: Belle Rive
16219 Palomino Mesa Court
San Diego, CA 92127

4 BR / 3 BA / 3 CAR / 2,865 SF

For More Information:

Contact Carylee Stone at 858-344-2632 or Carylee@StoneHomeTeam.com

JUST LISTED!

2011-09-30T21:30:00.000-07:00

Another Fine Home Presented by Carylee Stone

4S RANCH :: 4 BR, 3 BA, 3-CAR, 2,865 SF

Offered at $625,000

16219 Palomino Mesa Court; San Diego, CA 92127

This designer home features elegant and rich upgrades while accommodating a warm, comfortable lifestyle. The chef's kitchen (yes, it really is owned by a chef) makes entertaining a breeze. It includes upgraded stainless appliances (plus wine cooler), 18-inch hand laid travertine flooring, granite countertops and a convenient center-prep island that seats 6 people! This exclusive home has 4 oversized bedrooms plus an expansive loft adjacent to a custom built-in office area.

Located within the coveted community of Belle Rive in 4S Ranch--walk to schools, fitness centers, shopping, restaurants; loaded with recreational activities! Outdoor living includes covered patio/gazebo and fire pit, great for entertaining; spacious dining area includes built in bar; 3-car garage has epoxy coated floors; raised panel birch cabinets with cherry stain finish; double trash drawer; custom designer paint throughout; stunning American cherry hardwood floors and neutral carpeting with upgraded padding; huge master bedroom retreat with large custom organized walk-in closet, and spacious bath; structured wiring system complete with connection center and category five phone and cable wire; interior laundry room with linen storage cabinetry, deep utility laundry sink; wood beamed ceiling in living room; custom styled rounded corners at walls and windows; baby monitor hard wired to be viewable on every television installed. Please note: dishwasher does not convey.

For more information, contact Carylee Stone at 858-344-2632 or Carylee@StoneHomeTeam.com

It's Official, I've Registered to Walk 60 Miles

2011-09-23T18:17:00.000-07:00

Dear Friends,

It seems that everyone has had a close friend or family member who's suffered from breast cancer. Statistically, it's pretty amazing but I have not...until last year. In April 2010, one of the kindest, most patient people I know was diagnosed with breast cancer. She's MY age! One month later, she had a double mastectomy followed by chemotherapy and endless rounds of radiation treatments. Tonya Jamois has inspired me with her amazing grace, strength, dignity and courage. I'm truly honored to call her my friend.

Inspired by her Scottish roots, Tonya became a Pink and Plaid Warrior and wrote about her battle in her personal blog: pinkandplaidwarrior.blogspot.com. She shared about her challenges, pain, lessons learned and hardships faced; and through it, she's lifted us all up in the process. Today she continues to share her inspiring journey and those who know her can only aspire to be like her.

While still in treatment, Tonya signed up for the 3-Day Walk. She was THAT confident the cancer would be behind her! Later, she invited me to join her team--that invitation came in February--and today, 8 months later, I have FINALLY committed. On November 18-20, 2011, I'll walk 60 MILES over the course of three days with thousands of other women and men. What took me so long? I suppose I feared that I couldn't commit the time needed to train for the event; and due to some physical limitations caused by a car accident I had last year, I wasn't sure I'd be ready. What was I thinking? I'll tell you what I WASN'T thinking. I wasn't thinking about ALL the people around the world who suffer from this disease. I wasn't thinking about the fact that 3 days of my life (and probably a bit of pain) is NOTHING compared to what Tonya and her beautiful family went through. I'm ashamed it took me this long but I'm all in and now I'm reaching out to you.

I know we are living is challenging financial times but would you please assist me in raising the funds needed so I may participate? I've committed to raise at least $2,300 in donations. Since I waited a bit too long, I don't have a lot of time to get to the finish line...pun intended. Without a cure, one person will die of breast cancer every 13 minutes in the United States. I hope that you'll share this incredible adventure with me. Please become part of the Pink and Plaid Warrior team by donating to support my efforts. Click here: http://www.the3day.org/goto/caryleestone

BTW, if you work for a large corporation like Qualcomm, you can find out if your employer is part of Komen's Matching Gifts program. Click here: http://www.the3day.org/site/PageServer?pagename=Matching_Gifts_2011. They will DOUBLE your donation!

I think when the Pink and Plaid Warriors finally DO cross the finish line, we'll all have our "Rocky Balboa" moment.

Thank you so much for your generosity!

Carylee Stone

Expect 1% Rise in California Home Sales

2011-09-22T18:46:00.000-07:00

Bloomberg--The California Association of Realtors (C.A.R.) released its 2012 Housing Market Forecast this week during California Realtor Expo 2011 in San Jose. The forecast calls for California home sales and median price to improve only slightly in 2012, as the continuation of the tepid economic recovery, uncertainty about the future, and funding challenges for residential mortgages are expected to keep the market moving sideways, with little foreseeable momentum in either direction.

The forecast for California home sales next year is for a slight 1 percent increase to 496,200 units, following essentially flat sales of 491,100 homes this year compared to the 491,500 homes sold in 2010.
“Discretionary sellers will play a larger role in next year’s housing market,” said C.A.R. President Beth L. Peerce. “Those who held off selling in 2011 may list their homes in 2012, thereby improving the mix of homes for sale compared with the last few years. Additionally, distressed sales will remain an important segment of the overall market as lenders continue to work through the foreclosure process.”
The California median home price is expected to increase 1.7 percent in 2012 to $296,000 in 2012, according to the forecast. Following a double-digit increase in the median price in 2010, the median home price will decrease a projected 4 percent in 2011 to $291,000.
“2012 will be another transition year for the California housing market, as the continued uncertainty about the U.S. financial system, job growth, and the stability of the overall economy remain in the forefront for all market participants,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “An improvement in job growth, consumer spending, and corresponding gains in housing are essential to a broader recovery in the economy, but would-be buyers will remain cautious as they weigh these myriad uncertainties against the clear opportunities presented by today’s very affordable housing market.

For more information:

Carylee Stone
Distinctive Properties
858-344-2632
carylee@stonehometeam.com

How will Fed decision affect home loan rates?

2011-09-22T14:50:00.000-07:00

—Lily Leung, Union Tribune

The Federal Reserve on September 21, 2011 announced it's changing its investment strategy, which could translate into lower mortgage rates down the road, market watchers say.

The committee's words:

To help support conditions in mortgage markets, the Committee will now reinvest principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. In addition, the Committee will maintain its existing policy of rolling over maturing Treasury securities at auction.

What does that all mean?

Michael Lea, director of SDSU's real estate center, said officials are basically selling off shorter-term Treasury holdings for longer-term ones and mortgage-backed securities.

"They're changing the composition of their balance sheet," said Lea, a past chief economist of mortgage giant Freddie Mac. "This isn't a new round of quantitative easing. They're reinvesting, not injecting more money into the economy."

The decision could push down long-term interest rates, and in turn, mortgage rates.

Why is this needed when home-loan rates are historically low?

"Mortgage rates are not the problem," Lea said. At issue, is weak demand for mortgages because of income uncertainty and unemployment coupled with tight lending guidelines.

"This will have very little impact on the average person," Lea said. "It's meant to signal to markets that the Feds are still trying to do something."

Greg McBride, of financial site bankrate.com, also weighed in on Twitter.

"What will Fed's Operation Twist do?," wrote McBride, referring to Wednesday's plan. "It might push down mortgage rates. But it will also squeeze bank margins, leading to lower savings yields."

For more information:

Carylee Stone

Distinctive Properties

858-344-2632

carylee@stonehometeam.com

Coming Loan Changes Could Squeeze High Priced Home Markets

2011-09-10T18:26:00.000-07:00

By Julie Schmit, USA TODAY

Time is short for some buyers and owners of more expensive homes to get the best terms on mortgage loans.

Starting Oct. 1, Fannie Mae and Freddie Mac will cut the size of loans they buy from lenders. That will force many future borrowers into more expensive and harder-to-get jumbo loans.

The Freddie and Fannie limits, which are generally $417,000 for single-family homes nationwide, were raised in 2008 in some high-cost housing markets to stimulate the economy. In many areas, the limits rose to $729,750 and next month they'll fall to $625,500. Limits will drop more sharply in some areas and less in others.

Major lenders, including Bank of America, Wells Fargo and JPMorgan Chase, have stopped taking new applications for affected loans so that those in process close by the deadline.

Meanwhile, borrowers with offers on homes — who need loans at the current limits — are "panicked to close loans" by the deadline.

Some lenders are "buried" given the rush to close deals before the changes and the mini-refinance boom driven by low rates, says Dean Rizzi of Guarantee Mortgage in San Francisco. He has 10 home buyers who need loans to close before the deadline.

With jumbos, borrowers could see a 4.5% interest rate, for example, go to about 5%. Down payments of 20% will be the norm.

Bank of America says it will close its deals in time. It stopped taking new applications for loans affected by the changes in mid-July, spokesman Terry Francisco says. Borrowers starting the loan process now are probably "out of luck" if they want loan terms based on current limits.

Some buyers may lack needed down payments and others may have to consider less costly homes, says Beth Peerce, president of the California Association of Realtors.

Lobbying efforts to get Congress to extend the higher limits "are not looking great," Peerce says.

Can You Get a New Loan after a Short Sale?

2011-09-08T18:33:00.000-07:00

The answer is yes, if the short sale was your primary residence. The time frame differs depending on the type of loan, loan amount, and loan to value.

FHA is the easiest:

Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to:

• take advantage of declining market conditions, and
• purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.

Borrowers are considered eligible for a new FHA-insured mortgage if:

• they were current on their mortgage and other installment debts at the time of the short sale of their previously owned property, and
• the proceeds from the short sale serve as payment in full.

Eligible means immediately able to get a new FHA loan with 3.5% down payment!

If they were late on their mortgage prior and during the short sale process, they aren't eligible for 3 years from the date of completion. One key here is if the property they are purchasing is in the same geographical area as the one they did the short sale on, how do you prove it wasn’t a strategic default?

Fannie Mae:
80% LTV - 2 years
90% LTV - 4 to 7 years, probably 7 years because the mortgage insurance companies aren't willing to insure prior to 7 years

Freddie Mac:
80% LTV - 4 to 7 years
90% LTV - 4 to 7 years, probably 7 years because the mortgage insurance companies aren't willing to insure prior to 7 years

My take away on this is if you had a client do a short sale because of relocation, you are golden with FHA, if they were current on mortgage and other installment debt.

Otherwise assume your client will need 20% down and a recovered credit score.

For more information, or to get pre-qualified, please contact:

Dennis Resse

Rancho Financial

858-876-4328

dennis@dennisreese.com

If you need to sell your home short or would like property information, do not hesitate to contact me!

Carylee Stone

Distinctive Properties

858-344-2632

carylee@stonehometeam.com

www.StoneHomeTeam.com

DISCOVERY HILLS HOME--JUST SOLD FOR $460,000!

2011-05-26T17:14:00.000-07:00

757 POPPY ROAD

SAN MARCOS, 92078

For more details and photos, click here.

If you'd like to take advantage of record low interest rates and amazing buying opportunities, do not hesitate to contact Carylee Stone at 858-344-2632, carylee@stonehometeam.com

Are we facing the end of the 30-year fixed-rate mortgage?

2011-05-16T15:07:00.000-07:00

By Lew Sichelman, Los Angeles Tinmes

Will the move to dismantle Fannie Mae and Freddie Mac mean the end of the 30-year fixed-rate mortgage as we have come to know it?

Many housing proponents say that it will. Without the government's backing, they contend that the 30-year mortgage will become a relic of a bygone era when mortgage money was cheap and easy to come by. But others say America's most popular home loan will still be available — if you can afford it.

Before digging deeper into the debate, a short primer: Although the long-term fixed-rate mortgage was born with the Federal Housing Administration — the government agency established in 1934 to help stabilize the then-shaky housing market — it was taken to its greatest heights by Fannie and Freddie, the two government-chartered institutions that were created years later to keep the money flowing for home loans.

These government-sponsored enterprises (GSEs) live and work in the secondary mortgage market, where they keep primary lenders flush with cash by buying their loans and packaging them into securities for sale to investors worldwide.

With their implicit government guarantee and their corresponding ability to attract cash even though they were offering a lower return than investors could earn elsewhere, the GSEs were, in effect, able to subsidize the 30-year mortgage, making it less expensive than it would have been otherwise.

That such government-backed loans are cheaper is evidenced by the difference in rates charged in the so-called jumbo sector, where mortgages in amounts above the legislated ceiling are off-limits to Fannie Mae and Freddie Mac. (The limit is as high as $729,750 in some markets. It is due to fall back to $625,500 on Oct. 1.)

According to HSH Associates, a mortgage information service, the spread between loans that conform to Fannie and Freddie's limit and those that are over it is 54 basis points. (A basis point is 1/100th of a percentage point.) But the gap was as wide as 180 basis points as recently as December 2008.

The long-term fixed-rate mortgage that meets the two GSEs' rules also comes with a bonus, a no-cost prepayment option. Borrowers can trade them in at no cost for even less expensive loans when market rates fall or otherwise pay them off without penalty.

Normally investors shy from buying loans with this feature — or demand higher yields — because there is no way of knowing when borrowers will pull the plug. But because Fannie and Freddie guarantee that investors will be paid even if borrowers fail to make their payments, the loans are considered so safe that they are worth the prepayment risk.

Because of these key features, the 30-year home loan purchased by the GSEs has been the backbone of the housing market. There are no hard figures, but Jay Brinkmann, chief economist at the Mortgage Bankers Assn., says "essentially almost all" long-term fixed-rate mortgages at or below the conforming loan limit end up at Fannie or Freddie because of their superior pricing.

Now, though, the Obama administration, with the cooperation of Republicans, would gradually wind down Fannie and Freddie until they are mere figments of their former selves, if they survive at all. And with their demise, some housing interests also fear the passing of the 30-year fixed-rate loan.

If it doesn't go away, it will certainly be more expensive. How much more expensive is pure conjecture at this point, but some people predict that the rate could shoot up 3 percentage points.

The cost of a 30-year fixed-rate mortgage is hovering around 5%, so a 3-point jump would boost the rate to 8% or so, driving the monthly principal and interest payment on a $200,000 mortgage to $1,468 from $1,074. That's a difference of $394, a backbreaker for many would-be borrowers.

However, others say the increase in the rate won't be nearly that much. And once the mortgage market calms down, the difference may not be much at all.

"Three [percentage points] might be a knee-jerk reaction," says Keith Gumbinger of HSH. "But over time, it will probably settle in at a point higher or a little more. It's going to be a well-written mortgage anyway, so there won't be that much credit risk" for investors.

Three percentage points sounds "way too high," even to Brinkmann of the Mortgage Bankers Assn., which is pushing Capitol Hill for some sort of government guarantee on the safest, top-quality mortgages. Without that, the association argues, investors won't buy U.S. mortgages at any price.

But Edward Pinto, a resident fellow at the American Enterprise Institute, a conservative think tank, says the 30-year fixed-rate mortgage without any prepayment penalty — the kind of loan for which most borrowers opt — would cost only 1 percentage point more than it does now. At 6%, the monthly payout on $200,000 loan would be $1,199 a month, or $125 more than the same loan at the going rate now.

Pinto is a longtime advocate for getting the government out of the mortgage business. But apart from the fact that he thinks it is simply bad public policy for Uncle Sam to be subsidizing home loans, especially because mortgage interest is already tax-deductible, the former Fannie Mae executive says the 30-year mortgage is just not a good choice.

The 30-year fixed-rate mortgage is extremely expensive. Even at 5%, the total interest paid over the life of a $200,000 loan is $186,512.

• It amortizes so slowly that borrowers build up little equity in the early years. Indeed, if the above mortgage were taken out today, it wouldn't be until July 2027 — more than 16 years — that more of the payment went to reducing the outstanding balance than to paying interest for the privilege of borrowing the money in the first place.

• Because the mortgage is prepayable without penalty, many borrowers become serial refinancers, taking out whatever equity they manage to build up through making payments and price appreciation (when there was price appreciation). As a result, they never accumulate much of a nest egg in their nest.

Pinto also suggests that under a privatized housing market operating without a government guarantee, borrowers would be presented with myriad loan choices to fit their needs. Here's a sample of some possibilities along with the potential cost of borrowing $200,000:

• 30-year fixed-rate term with a prepayment fee of 3% of the outstanding balance the first year, 2% the second year and 1% the third: 5.625%, or $1,151 a month.

• 30-year amortization over a 15-year term with a 3-2-1 prepayment penalty: 5.375%, or $1,120.

• 15-year fixed-rate term with no prepayment fee: 5.375%, or $1,621.

• The same loan with a 3-2-1 prepay fee: 5.125%, or $1,595.

• Seven-year adjustable-rate mortgage with a 30-year amortization with no prepay charge: 5%, or $1,074.

• The same loan with a 3-2-1 prepay penalty: 4.75%, or $1,043.

Call Carylee Stone today for more information: Carylee@StoneHomeTeam.com; 858-344-2632

Existing Home Sales Rise in March

2011-04-21T11:56:00.000-07:00

Sales of existing-home sales rose in March, continuing an uneven recovery that began after sales bottomed last July, according to the National Association of Realtors®.

Existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7 percent to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3 percent below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.

NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”

NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13 percent of gross household income, the lowest since records began in 1970.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84 percent in March, down from 4.95 percent in February; the rate was 4.97 percent in March 2010.

Data from Freddie Mac and Fannie Mae show requirements to obtain conventional mortgages have been tightened, with the average credit score rising to about 760 in the current market from nearly 720 in 2007; for FHA loans the average credit score is around 700, up from just over 630 in 2007.

“Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago – before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.

“Given that FHA and VA government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low-downpayment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget. Raising the downpayment requirement would unnecessarily deny credit to many worthy middle-class families and veterans,” Yun said.

A parallel NAR practitioner survey shows first-time buyers purchased 33 percent of homes in March, compared with 34 percent of homes in February; they were 44 percent in March 2010.

All-cash sales were at a record market share of 35 percent in March, up from 33 percent in February; they were 27 percent in March 2010. Investors accounted for 22 percent of sales activity in March, up from 19 percent in February; they were 19 percent in March 2010. The balance of sales were to repeat buyers.

The national median existing-home price3 for all housing types was $159,600 in March, down 5.9 percent from March 2010. Distressed homes – typically sold at discounts in the vicinity of 20 percent – accounted for a 40 percent market share in March, up from 39 percent in February and 35 percent in March 2010.

NAR President Ron Phipps said some renters are looking to home ownership as a hedge against inflation. “The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years,” he said. “As buyers gain more financial security, the advantages of home ownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.

Total housing inventory at the end of March rose 1.5 percent to 3.55 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, compared with a 8.5-month supply in February.

Single-family home sales rose 4.0 percent to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February, but are 6.5 percent below the 4.76 million level in March 2010. The median existing single-family home price was $160,500 in March, down 5.3 percent from a year ago.

Existing condominium and co-op sales increased 1.6 percent to a seasonally adjusted annual rate of 650,000 in March from 640,000 in February, but are 4.1 percent below the 678,000-unit pace one year ago. The median existing condo price was $153,100 in March, which is 10.1 percent below March 2010.

Regionally, existing-home sales in the Northeast rose 3.9 percent to an annual level of 800,000 in March but are 12.1 percent below March 2010. The median price in the Northeast was $232,900, down 3.0 percent from a year ago.

Existing-home sales in the Midwest increased 1.0 percent in March to a pace of 1.06 million but are 13.1 percent lower than a year ago. The median price in the Midwest was $126,100, which is 7.1 percent below March 2010.

In the South, existing-home sales rose 8.2 percent to an annual level of 1.99 million in March but are 1.0 percent below March 2010. The median price in the South was $138,200, down 6.6 percent from a year ago.

Existing-home sales in the West slipped 0.8 percent to an annual pace of 1.25 million in March and are 3.1 percent below a year ago. The median price in the West was $192,100, which is 11.2 percent lower than March 2010.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

For all your home buying and selling needs, contact Carylee Stone at 858-344-2632 or Carylee@StoneHomeTeam.com.

DISCOVERY HILLS HOME NOW IN ESCROW!

2011-04-18T19:13:00.000-07:00

After telling everyone who would listen that this home at 757 Poppy in San Marcos was an amazing value, a lovely family took advantage of the opportunity!

For more details and photos, click here.

If you'd like to take advantage of record low interest rates and amazing buying opportunities, do not hesitate to contact Carylee Stone at 858-344-2632, carylee@stonehometeam.com

OPEN HOUSE TODAY 1:00 - 4:00 pm

2011-04-16T10:36:00.000-07:00

AMAZING VALUE IN DISCOVERY HILLS!

Coveted Discovery Hills home on prime view lot. This well-maintained home features a large open floorplan with soaring ceilings and loads of upgrades. Enjoy mountain views from your tranquil, thoughtfully-designed backyard with lush landscaping. Located near extensive hiking trails, playground and Discovery Lake, this home is ideal for those with an active lifestyle. Traditional Sale. NO HOA AND LOW TAXES MAKE THIS AN INCREDIBLE VALUE!

Schools include the Blue Ribbon Discovery Elementary, San Elijo Middle (both CA Distinguished Schools) and San Marcos High School. Enjoy all that Discovery Hills has to offer. Close to CSU San Marcos, Palomar College, loads of restaurants, golfing, shopping, theaters and quick access to the Freeway or the Sprinter Station. All MLS and marketing information is approximate and not guaranteed, Buyer to verify all information prior to close of escrow. Seller to choose services. Don't miss this opportunity to live in a great neighborhood within one of the best communities in San Diego county.

For more details and photos, click here.

For additional information, contact Carylee Stone at 858-344-2632, carylee@stonehometeam.com

Confidence in Value of Homeownership Persists

2011-04-13T11:02:00.000-07:00

By Alejandro Lazo, Los Angeles Times

The real estate bust appears to have done little to alter Americans' confidence in the investment value of homeownership. A robust 81% of adults say buying a home is the best long term investment a person can make, according to a national survey by the Pew Research Center in Washington.

"Owning a home is really a part of the American dream, and that is just part of the American psyche and something that people aspire to," said Kim Parker, associate director for the center and one of the study's authors.

The study's results were unexpected, given the deep plunge in home prices and the fallout from the mortgage crisis, she said. Homeownership topped the list of long-term financial goals for Americans, according to the study; respondents rated homeownership, as well as living comfortably in retirement, more important than sending children to college or leaving offspring an inheritance.

The public's faith in real estate has been bruised since the last time a comparable survey asked people about the wisdom of investing in real estate. A total of 37% of respondents said they "strongly agree" that homeownership is the best investment a person can make while 44% said they "somewhat agree." The same question was asked by a CBS News/New York Times survey in 1991, and at that time 49% "strongly agreed" and 35% "somewhat agreed."

"The study results are surprising in that so many households still believe that homeownership is a good investment, even after the plunge in home values that has occurred over the past couple of years," said Celia Chen, a housing economist for Moody's Economy.com. "The preference for homeownership has deep roots in the history of this nation, and apparently even a severe correction in house prices can shake American's belief in homeownership only slightly."

The telephone survey was comprised of a nationally representative sample of 2,142 adults conducted from March 15 to March 29 by Princeton Survey Research Associates International. Interviews were done in English and Spanish. The margin of sampling error for the data is plus or minus 2.7%.

While home prices have entered a renewed decline after showing some improvements last year, many economists believe that the worst of the housing crisis is probably over. That sentiment could help to explain the resiliency in Americans' optimism. "People may have the feeling that the worst is behind us," Parker said.

Though other investments such as stocks tend to produce a better return, the housing market has generally avoided the wild swings that the stock market has over time, potentially helping to explain real estate's lasting allure, Parker added.

Homeowners in the surveywere more positive about the financial wisdom of owning a home than were renters. But even among renters, the desire for homeownership remains strong, according to the survey's findings. Just 24% of renters surveyed said they rent out of choice and 81% said they would like to buy.

The decline in values has struck a wide swath of Americans. About half, or 47%, of homeowners said their property is now worth less than when the recession began, and 31% said the value of their home has not improved. Just 17% said their home is worth more than before the recession.

Of those who said their properties have lost value, 86% said they expect it to take at least three years for values to recover, 42% said at least six years and 10% said they expect a recovery in 10 years or more.

Despite those sentiments, 82% of homeowners who indicated their home is worth less than before the recession said homeownership is the best long-term investment a person can make.

MAKING SENSE OF THE STORY

Homeownership topped the list of long-term financial goals for Americans, according to the study. Respondents rated homeownership, as well as living comfortably in retirement, as more important than sending children to college or leaving offspring an inheritance.

“Owning a home is really a part of the American dream, and that is just part of the American psyche and something that people aspire to,” according to one of the study’s authors.

Although the vast majority of adults surveyed are in favor of owning a home, the public’s faith in real estate has somewhat declined compared with the last time a comparable survey asked people about the wisdom of investing in real estate. In the Pew Research Center survey, 37 percent of respondents said they “strongly agree” that homeownership is the best investment a person can make, while 44 percent said they “somewhat agree.” The same question was asked by a CBS News/New York Times survey in 1981, and at that time, 49 percent “strongly agreed,” and 35 percent “somewhat agreed.”

While home prices have entered a renewed decline after showing some improvements last year, many economists believe that the worst of the housing crisis is probably over, which could help explain the resiliency in Americans’ optimism.

Homeowners in the survey were more positive about the financial wisdom of owning a home than were renters. Among renters, the desire for homeownership remains strong. According to the survey’s findings, 24 percent of renters surveyed said they rent out of choice and 81 percent said they would like to buy.

Take advantage of our buyer's market and record low interest rates. Call Carylee Stone today at 858-344-2632 or email to Carylee@StoneHomeTeam.com

Mortgage Aid Offered to Those Who Cashed Out Equity

2011-04-07T12:39:00.000-07:00

The California Housing Finance Agency announced this week that people who cashed out equity on their home now are eligible for three of the four “Keep Your Home California” programs.

MAKING SENSE OF THE STORY

Keep Your Home California is a state-run program funded with $2 billion from the U.S. Treasury’s Hardest Hit Fund. It is designed to help low- and moderate-income people who are unemployed or owe more than their home is worth pay their mortgage.
There are four individual programs that fall under Keep Your Home California. Eligible homeowners can get up to $50,000 in assistance from one or more of the four programs combined.
Under the new rules, people who took equity out of their homes will be eligible for the unemployment mortgage assistance, mortgage reinstatement assistance, and transition assistance programs if they meet all the other program requirements. Homeowners who cashed out equity will continue to be ineligible for the principal reduction program.
When the program first started, homeowners who had tapped the equity in their homes were ineligible for the programs. CalHFA decided to include these homeowners due to the large number of homeowners who were being turned away for assistance.
Under the program revisions, homeowners who originated mortgages after Jan. 1, 2009 also are eligible for the same three programs. Originally, these borrowers were excluded because they also are excluded under the federal Home Affordable Modification Program, so CalHFA wanted to be consistent with HAMP.
To qualify for any of the four programs, homeowners must fall below certain income limits, must be living in the home, and cannot own a second home, among other criteria. For additional requirements, visit www.KeepYourHomeCalifornia.org/Eligibility.htm

For more information, Contact Carylee Stone at 858-344-2632 or Carylee@StoneHomeTeam.com

NEW LISTING! Incredible Value in Coveted Discovery Hills, San Marcos

2011-03-07T07:54:00.000-08:00

Move-in ready and one of the largest floorplans in Discovery Hills. Spacious 3 car garage and new roll-up doors. Functional floor plan with one bedroom on main level. Ceiling fans in every room. Double door entry (with hardwood flooring) into huge sunken living room. Lots of windows. Kitchen fully equipped and features breakfast nook, granite countertops, double oven and includes refrigerator. Family room with hand-laid porcelain tile and fireplace opens to lush, beautiful, private backyard with covered patio and storage shed. Spacious master with walk-in closet, fireplace and mountain views. Security system, air conditioning, upgraded audio, neutral colors. Large laundry room with washer and dryer included in sale.

Schools include the Blue Ribbon Discovery Elementary, San Elijo Middle (both CA Distinguished Schools) and San Marcos High School. Enjoy all that Discovery Hills has to offer. Close to CSU San Marcos, Palomar College, loads of restaurants, golfing, shopping, theaters and quick access to the Freeway or the Sprinter Station. All MLS and marketing information is approximate and not guaranteed, Buyer to verify all information prior to close of escrow. Seller to choose services. Don't miss this opportunity to live in a great neighborhood within one of the best communities in San Diego county.

For more details and photos, click here.

If you'd like to schedule an appointment to see this property, contact Carylee Stone at 858-344-2632, carylee@stonehometeam.com

California Home Sales Rose in January While Median Price Fell

2011-02-16T18:35:00.000-08:00

California home sales rose in January, marking three consecutive monthly increases and posting their highest level since May 2010, while the statewide median price declined to its lowest level since June 2009, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

“With lower home prices and rates edging up from their historic lows of late last year, prospective home buyers should consider the opportunities in today’s market,” said C.A.R. President Beth L. Peerce.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 546,420 in January, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide, representing 90 percent of the market. January’s sales were up 5.1 percent from December’s revised pace of 520,080 and up 2.5 percent from the 532,870 sales pace recorded in January 2010. It was the first year-over-year sales increase since May 2010. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home sold in California was $278,900, down 8.6 percent from a revised $305,020 in December and was down 2.0 percent from the $284,600 median price recorded for January 2010. The January 2011 median price was the lowest since June 2009, when it was $274,640.

“Although prices typically fall seasonally in January and February of each year, the decline in the median price can primarily be attributed to the aftereffects of last fall’s foreclosure moratoria,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “More distressed properties are coming on to the market, which led to an uptick in sales of distressed properties during January. We expect this trend to continue as lenders expedite the disposition of these properties,” she said.

Carylee Stone, 858-3442632, carylee@stonehometeam.com

Homeownership More Affordable Than Renting in 72% of Major US Cities

2011-02-03T08:44:00.000-08:00

It is more affordable to buy than to rent a two-bedroom home in 72 percent of America’s 50 largest cities, according to Trulia.com’s latest Rent vs. Buy Index. Meanwhile, a nation of renters has emerged as more Americans rent by choice or due to unforeseen financial difficulties. In contrast to this nationwide trend, renting is only less expensive than buying in four of the cities included in this study – namely New York, Seattle, Kansas City, and San Francisco. The remaining 10 cities are locations where buying still may be a financially sound long-term decision, despite the relative affordability of renting.

Cities overwhelmed by foreclosure filings and unemployment, including many cities in Florida, Arizona, Nevada and central California, typically correspond to more affordable markets for prospective buyers; however, there are exceptions. Oakland and Los Angeles, which are experiencing similar rates of unemployment or foreclosure filings as Phoenix, Miami, and Sacramento, still are more affordable to renters. Moreover, close proximity to economic centers with promising job growth projections has propped up both the demand for homes and costs of homeownership in Oakland and Los Angeles.

Although owning a home is relatively more affordable in most cities, market conditions have caused an interesting demographic swap between traditional renters and buyers," said Tara-Nicholle Nelson, Consumer educator for Trulia. "For example, lifelong renters are seizing the opportunity to become homeowners while affordability is high. At the same time, a growing number of long-time homeowners are finding themselves tenants--some by choice and others by necessity."

Is it time for you to buy a new home? Contact Carylee Stone: 858-344-2632, carylee@stonehometeam.com.

New Program for Unemployed: Keep Your Home California

2011-01-20T16:18:00.000-08:00

Unemployed California homeowners now can apply for up to $3,000 a month in mortgage assistance to tide them over for up to six months while looking for work.

The Unemployed Mortgage Assistance Program (UMA) is the first of four programs the state is scheduled to roll out as part of an initiative called “Keep Your Home California.” The programs are supported by $2 billion in federal dollars provided through the Hardest Hit Fund.
Eligible homeowners who are struggling to make their mortgage payments after suffering a job loss may qualify for assistance.

The U.S. Treasury Department has approved CalHFA's plan to use nearly $2 billion in federal funding to help California families struggling to pay their mortgages.

The Keep Your Home California programs are focused on assisting low and moderate income families stay in their homes, when possible, and leveraging additional contributions from mortgage servicers.

Primary objectives for the Keep Your Home California programs include:

• Preserving homeownership for low and moderate income homeowners in California by reducing the number of delinquencies and preventing avoidable foreclosures
• Assisting in the stabilization of California communities

Each of the Keep Your Home California programs is designed to address one or more aspects of the current housing crisis by doing the following:

• Helping low and moderate income homeowners retain their homes if they either have suffered a financial hardship such as unemployment, have experienced a change in household circumstance such as death, illness or disability, or are subject to a recent or upcoming increase in their monthly mortgage payment and are at risk of default because of this economic hardship when coupled with a severe decline in their home's value.

• Creating a simple, effective way to get federal funds to assist low and moderate income homeowners who meet one or all of the objective criteria described above. Speed of delivery will be balanced with fulfillment of the specific program's mission and purpose.

• Creating programs that have an immediate, direct economic and social impact on low and moderate income homeowners and their neighborhoods.

NOTE: These programs are only available to homeowners whose mortgage servicing company agrees to the terms and conditions governing the use of these funds. If your servicer is not currently participating in Keep Your Home California, you may want to call them and encourage them to do so. A homeowner cannot receive assistance if their servicer has not signed an agreement with CalHFA MAC. See a list of participating servicers and which programs they are currently offering.

When Will Housing Come Back in California?

2011-01-01T09:49:00.000-08:00

By Alejandro Lazo, Los Angeles Times

Although the steep decline of home prices in California ended in spring 2009, the weakness in the housing market after the expiration of federal tax credits for home buyers last year has led to some speculation as to whether the recovery is sustainable. Five experts, including Leslie Appleton-Young, the chief economist for the CALIFORNIA ASSOCIATION OF REALTORS®, were asked to provide their view on the state of real estate and what they think is needed to get the housing market moving again.

• In terms of home prices, the experts differed slightly with the majority predicting that home prices will remain flat throughout 2011. Ms. Appleton-Young predicts home prices will rise 2 percent this year, while a foreclosure expert predicts housing prices to decline 5 percent in 2011.

• According to Ms. Appleton-Young, there is little chance of home prices returning to their previous peak levels anytime soon. “We are in a slow-moving recovery with prices stabilized at the moderate and low end,” she said. “We are still seeing price attrition and price softening at the upper ends of the market.”

• California’s recovery will hinge on location, according to Richard Green, director of the USC Lusk Center for Real Estate. Areas between El Centro and Sacramento likely will not see a return to peak prices for a long time. However, places like La Jolla, Laguna, Huntington Beach, Atherton, Palo Alto, the city of San Francisco, and Marin County could experience a return to their peak prices within the next five years, according to Mr. Green.

• Foreclosure expert Bruce Norris of the Norris Group believes the market is being artificially boosted by government programs and is set to fall further this year. Mr. Norris believes the demand for housing is most-needed for a sustainable recovery.

• California’s coastal markets will make a return once the job market improves, according to Emile Haddad, chief executive at FivePoint Communities Inc. In turn, that will lift consumer confidence. However, California’s inland areas are more likely to lag behind, and builders will have to reconsider the kind of product they offer in certain places.

Now is the Time to Refinance

2010-11-20T16:18:00.000-08:00

Mortgage rates on 30-year, fixed rate loans are hovering near the lowest level on record since 1951. While some home buyers are putting their home purchases on hold hoping rates will go even lower, many industry experts are advising homeowners with rates in the upper 4 percent range to refinance.

Homeowners with rates in the upper four percent range are likely to benefit from refinancing, according to Peter Ogilvie, president of First Residential Mortgage Corp. in Santa Cruz, Calif. He says refinancing to a lower rate often produces monthly savings, as long as the borrower can qualify under today’s industry credit guidelines and loan-to-value underwriting standards.

Some homeowners also may be good candidates for no-cost refinancing, where the title, escrow, and lender closing charges either are added to the mortgage principal balance or paid for over time with a slightly higher rate. The upsides to this option are reduced monthly payments, improved cash flow, and no outset of dollars at settlement.

Borrowers who want to become debt-free faster and can afford it, ought to consider refinancing out of a 30-year term loan into a 15-year term. Fifteen-year mortgages carry lower rates than 30-year loans, but their faster amortization schedules require higher monthly payments.

When considering whether refinancing is the best option, consumers are advised to take into account all of the fees associated with the refinance and decide if the money saved is worth the cost of the refinance.

Americans worried about making mortgage/rent payments

2010-11-11T18:04:00.001-08:00

More than half of Americans are worried about not having enough money to pay their mortgage or rent, according to a survey recently released by the Washington Post.

A third of respondents were "very concerned" about their ability to make housing payments, while a fifth were "somewhat concerned," adding up to 53 percent of respondents. This contrasts with the results of similar surveys the newspaper conducted in February 2009 and December 2008. In the 2008 survey, 37 percent of respondents said they were at least "somewhat concerned" about making their housing payments -- by February 2009, that figure had risen to 46 percent.

Those with household incomes lower than $30,000 were twice as likely to be worried as those with incomes of $75,000 or more, according to the survey.

Despite concerns about the economy, the majority of respondents, 61 percent, said that now is a good time to buy a home. Nearly 30 percent said it is a bad time to buy, and 10 percent had no opinion.

Now IS a good time to buy a home. Contact Carylee Stone to get started. 858-344-2632

Americans worried about making mortgage, rent payments

2010-11-11T18:04:00.000-08:00

2011 California Housing Market Forecast

2010-10-12T18:07:00.000-07:00

California home sales for 2011 are projected to increase 2 percent to 502,000 units compared with 492,000 units (projected) in 2010. After two consecutive years of record-setting price declines, the median home price in California will increase 2 percent in 2011 to $312,500, according to the forecast.

“As the U.S. economy continues its tepid recovery, we’ll see some improvement in California’s economy,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “We expect a net jobs increase of approximately 1.4 million jobs in California for the year to come and an improvement in unemployment figures.

“A lean supply of available homes for sale will drive prices up at the low end, but larger inventories and limited, less attractive financing will cause continued softness at the high end,” said Appleton-Young. “There’s some indication that lenders will accelerate the number of foreclosures coming on market, further adding to the housing supply, but we do not anticipate that lenders will flood the market with distressed properties,” she said.

“The wild cards for 2011 include federal housing policies, actions of underwater homeowners, and the strength of the economic recovery,” said Appleton-Young. “What is certain is that favorable home prices and historically low interest rates will continue to make owning a home in California attractive for those who are in a position to buy,” she said.

Call Carylee Stone for your home buying and selling needs, 858-344-2632 or email carylee@stonehometeam.com.

No Short Sale Deficiencies

2010-10-06T08:09:00.000-07:00

Beginning January 1, 2011, a seller's first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931. Governor Schwarzenegger vetoed Senate Bill 1178, California Association of Realtors' sponsored bill, which would have extended California's anti-deficiency protection to refinance loans.

Mortgage Delinquencies Remain High...1 in 10 Loans

2010-08-27T08:10:00.000-07:00

One in 10 American households with a home loan was behind on payments by at least one month this summer, the Associated Press reported.

The wire service quoted a Mortgage Bankers Assn. report on second-quarter delinquencies as saying that 9.9% of borrowers fell into that category as of June 30.

In a worrisome sign, the number of homeowners starting to have problems paying their home loans rose after trending downward last year. But the number of homes in the actual foreclosure process fell slightly, the first drop in four years, according to the Mortgage Bankers Assn. quarterly report.

The report arrived amid fears that a sagging economy could result in another round of declining home prices and rising defaults.

Earlier reports this week showed weaker than expected home sales in July following the expiration this spring of federal tax credit for home buyers. Sales of new homes were at their lowest point since the government began keeping records in 1963.

--E. Scott Reckard, L.A. Times

Report Finds 1/4 of Renters Never Plan to Own a Home

2010-08-25T18:50:00.000-07:00

A new report by Trulia.com finds that 27 percent of renters surveyed indicated they do not plan to ever purchase a home, while 68 percent said it would be more than two years before they do.

Of the 68 percent of renters who plan to someday purchase a home, nearly 80 percent said there are factors that could inspire them to purchase within the next 12 months. Factors cited included: Able to save enough for a down payment, 47 percent; got a new job, 28 percent; interest rates stay low/get lower, 27 percent; decide it makes more financial sense to buy instead of rent, 24 percent; got a promotion/raise, 23 percent; and local real estate market stabilized, 9 percent.

According to the study, 72 percent of American adults still believe homeownership is part of their personal American dream. Additionally, 23 percent of those surveyed said their attitude toward owning a home has grown more positive over the last six months.

Take advantage of ridiculously low interest rates, buying now makes sense. Call Carylee Stone for more information at 858-344-632 or email carylee@stonehometeam.com.

www.StoneHomeTeam.com

Appraisal sites on Net often fail to pin down accurate prices

2010-08-19T20:47:00.000-07:00

I have been advising people of this for years but I think sometimes people need it to be in print for it to sink in. Homeowners need a Realtor to establish a true and accurate estimate of the value of your home...

Over the last five years, one of the newest developments in real estate is the ability for home buyers and sellers to search online for a home’s value. Popular Web sites such a Zillow.com, Cyberhomes.com, and Eppraisal.com offer free home estimates, but some consumers and real estate industry professionals say the values calculated often are inaccurate and misleading.

Online home appraisal Web sites assign home values without knowing the features or upgrades of a home or the neighborhood in which it is located. Some Web sites offer a price range of $20,000-$40,000 more or less than the actual value of the home.

Since housing markets are local and not every home of a certain size is the same value, consumers can be misled into believing a home is worth more or less than the actual value. Working with a local REALTOR® can help minimize inaccuracies in home values. REALTORS® can provide local housing market data and show homeowners and buyers recent sales of comparable homes in the area, to help determine an accurate list or offer price.

While some agents report that Web estimates can educate clients and provide a reasonable assessment of market conditions and the home-buying process, working with a local REALTOR® is the best option.

—Sacramento Bee

If you are considering selling your home, please do not hesitate to contact Carylee Stone at 858-344-2632 for a free market analysis.

Mortgage Rates Hit Low of 4.49%!

2010-08-06T12:44:00.000-07:00

—By ALAN ZIBEL, Washington

Mortgage rates dropped to the lowest level in decades for the sixth time in seven weeks, offering the most attractive opportunity for those who qualify to refinance or purchase a home.

Government-controlled mortgage buyer Freddie Mac said Thursday that the average rate for 30-year fixed loans this week was 4.49 percent, down from 4.54 percent last week. That's the lowest since Freddie Mac began tracking rates in 1971.

The average rate on the 15-year fixed loan dropped to 3.95 percent, down from 4 percent last week and the lowest on record.

Rates have fallen since spring as investors seek the safety of U.S. Treasury bonds. That has lowered the yield on Treasurys. Mortgage rates tend to track those yields.

The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.

Low rates have sparked some activity in the weak housing market, but not a massive boom in refinancing.

Applications to refinance loans increased 1.3 percent and those to purchase homes increased 1.5 percent, according to the Mortgage Bankers Association.

Nevertheless, high unemployment, slow job growth and tight credit have made it difficult for many to purchase homes. The housing industry received a boost this spring when the government offered homebuying tax credits, but housing activity has plummeted since they expired in April.

The number of buyers who signed contracts to purchase homes plunged in June to the lowest level on records dating back to 2001, according to the National Association of Realtors.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on five-year adjustable-rate mortgages averaged 3.63 percent, down from 3.76 percent a week earlier. Rates on one-year adjustable-rate mortgages fell to an average of 3.55 percent from 3.64 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 a point for all loans.

It's time to take advantage of rock bottom rates. Call Carylee Stone today 858-344-2632.

Competitively Price Your Home

2010-07-23T09:30:00.000-07:00

Accurately pricing a home for sale continues to be one of the most important factors in determining whether a home sells or lingers on the market. In some cases, sellers may need to reduce their asking price to attract buyers and offers. Some homeowners may struggle with determining whether or not they should reduce their list price. Receiving the guidance of a REALTOR® may help sellers decide if they should reduce the asking price. Sellers also may want to consider reducing their asking price if the following applies:

• The sales prices of recently sold homes in the area are lower than the list price of the home listed for sale.

• Feedback from buyers’ agents suggests the home is overpriced.

• The home isn’t receiving any showings, even though it is well marketed.

• There have been multiple offers, but they consistently have been significantly lower than the list price.

Are you ready to sell? Contact CARYLEE STONE for a free, no pressure property analysis, 858-344-2632, caryleee@stonehometeam.com

Biggest Defaulters on Mortgages are the Rich

2010-07-17T17:17:00.000-07:00

—The New York Times

No need for tears, but the well-off are losing their master suites and saying goodbye to their wine cellars.

The housing bust that began among the working class in remote subdivisions and quickly progressed to the suburban middle class is striking the upper class in privileged enclaves like this one in Silicon Valley.

Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.

More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.

By contrast, homeowners with less lavish housing are much more likely to keep writing checks to their lender. About one in 12 mortgages below the million-dollar mark is delinquent.

Though it is hard to prove, the CoreLogic data suggest that many of the well-to-do are purposely dumping their financially draining properties, just as they would any sour investment.

“The rich are different: they are more ruthless,” said Sam Khater, CoreLogic’s senior economist.

Five properties here in Los Altos were scheduled for foreclosure auctions in a recent issue of The Los Altos Town Crier, the weekly newspaper where local legal notices are posted. Four have unpaid mortgage debt of more than $1 million, with the highest amount $2.8 million.

Not so long ago, said Chris Redden, the paper’s advertising services director, “it was a surprise if we had one foreclosure a month.”

The sheriff in Cook County, Ill., is increasingly in demand to evict foreclosed owners in the upscale suburbs to the north and west of Chicago — like Wilmette, La Grange and Glencoe. The occupants are always gone by the time a deputy gets there, a spokesman said, but just barely.

In Las Vegas, Ken Lowman, a longtime agent for luxury properties, said four of the 11 sales he brokered in June were distressed properties.

“I’ve never seen the wealthy hit like this before,” Mr. Lowman said. “They made their plans based on the best of all possible scenarios — that their incomes would continue to grow, that real estate would never drop. Not many had a plan B.”

The defaulting owners, he said, often remain as long as they can. “They’re in denial,” he said.

Here in Los Altos, where the median home price of $1.5 million makes it one of the most exclusive towns in the country, several houses scheduled for auction were still occupied this week. The people who answered the door were reluctant to explain their circumstances in any detail.

At one house, where the lender was owed $1.3 million, there was a couch out front wrapped in plastic. A woman said she and her husband had lost their jobs and were moving in with relatives. At another house, the family said they were renters. A third family, whose mortgage is $1.6 million, said they would be moving this weekend.

At a vacant house with a pool, where the lender was seeking $1.27 million, a raft and a water gun lay abandoned on the entryway floor.

Lenders are fearful that many of the 11 million or so homeowners who owe more than their house is worth will walk away from them, especially if the real estate market begins to weaken again. The so-called strategic defaults have become a matter of intense debate in recent months.

Fannie Mae and Freddie Mac, the two quasi-governmental mortgage finance companies that own most of the mortgages in America with a value of less than $500,000, are alternately pleading with distressed homeowners not to be bad citizens and brandishing a stick at them.

In a recent column on Freddie Mac’s Web site, the company’s executive vice president, Don Bisenius, acknowledged that walking away “might well be a good decision for certain borrowers” but argues that those who do it are trashing their communities.

Road to Recovery: Local Housing Market Showing Signs of Strength

2010-06-25T12:13:00.000-07:00

—San Gabriel Valley Tribune

Both the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® (NAR) released monthly housing reports this week. However, each report told a different story about the housing market. Nationally, home sales declined but in California home sales rose 14.1 percent in May compared with April and 1.2 percent compared with April 2009.
KEEP THIS IN MIND

• The median price of existing single-family homes in California in May was $324,430, a 23.2 percent increase compared with a median price of $263,440 in May 2009, C.A.R. reported. The May 2010 median price increased 5.9 percent compared with April’s $306,230 median price.

• While home prices are rising month-over-month and year-over-year, affordability continues to remain at near-record highs. In the first quarter of 2010, 66 percent of first-time home buyers in California could afford to purchase an entry-level home in the state, according to C.A.R.’s First-time Buyer Housing Affordability Index.

• Many first-time home buyers timed the opening and closing of escrow to capitalize on both the federal and state tax credits, resulting in a rise in home sales in May. Although home sales rose, the number of home buyers signing sales contracts declined nearly 17 percent compared with April, which C.A.R. Chief Economist Leslie Appleton-Young attributes to the ending of the federal tax credit. “Although there may be a lessening of demand compared with the first half of this year, the number of escrows opened on a year-to-date basis is about the same as last year, and sales for all of 2010 will be on a par or slightly below last year,” said Appleton-Young.

• Despite the number of foreclosures listed for sale, the inventory of homes for sale still is below the long-run average of 7-months, according to C.A.R. In May, C.A.R.’s Unsold Inventory Index for existing, single-family detached homes was 4.6 months, unchanged from the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

If you are thinking about buying or selling your home, please do not hesitate to contact Carylee Stone at 858-344-2632.

Home Sales in California Rise in May

2010-06-24T08:10:00.000-07:00

Home sales increased 1.2 percent in May in California compared with the same period a year ago, while the median price of an existing home rose 23.2 percent, C.A.R. reported yesterday.

“Home sales posted their third largest increase on record for May, due in part to first-time home buyers who timed the open and close of escrow in order to capitalize on both the federal and state tax credits,” said C.A.R. President Steve Goddard. “May also marked the fifth month of double-digit gains in the median price, indicative of strong buyer demand relative to the supply of homes for sale. With a 4.6-month supply of homes for sale, unsold inventory continues to be well below the long-run average of seven months, and will continue to drive price appreciation over the next several months.”

The median price of an existing, single-family detached home in California during May 2010 was $324,430, a 23.2 percent increase from the revised $263,440 median for May 2009, C.A.R. reported. The May 2010 median price increased 5.9 percent compared with April’s $306,230 median price.

—California Association of Realtors

Santaluz Listing SOLD in 1 Day!

2010-06-17T07:53:00.000-07:00

Thirteen showings the first day listed with two full-priced offers the next day, $1,175,000! Ask me how I did it...

Stunning Designer Showcase in Santaluz Valley

When only the very best will suffice, this stunning Italian-style executive home shows like a model. It features dramatic upgrades yet accommodates a warm, comfortable lifestyle. Step through arched doorways into large graceful living areas including four bedrooms plus a large office. A chef’s kitchen and expansive interior spaces make entertaining a breeze. Full security system, category-five wiring and surround sound are sure to please tech savvy enthusiasts. View the picturesque lush landscaping through Anderson doors and glider windows that seamlessly integrate indoors and out.

Property is centrally located near: schools, biotech, colleges, hospitals, airport, shopping, parks, trails, beaches and restaurants.

Located within the subdivision of Santa Monica—Bordering Rancho Santa Fe and Fairbanks Ranch within the Santaluz Master Plan of Black Mountain Ranch

Call Carylee Stone today for more information.

858-344-2632.

Homeowners Could be Sued by their Lenders

2010-06-16T11:32:00.000-07:00

Facing the possibility of foreclosure, California homeowners may be hit with more than just losing their homes. Due to a loophole in state law, they also can be sued by their lender. To prevent this, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) is sponsoring Senate Bill 1178 by State Sen. Ellen Corbett (D-San Leandro), which will extend anti-deficiency protection for consumers who have refinanced their original mortgage loans and now are facing foreclosure.

MAKING SENSE OF THE STORY FOR CONSUMERS
Currently, if a homeowner defaults on a mortgage used to purchase his or her home -- known as a “purchase money mortgage” -- the homeowner's liability on the mortgage is limited to the property itself. Unfortunately, the original law did not extend the purchase money protection to loans that refinance the original purchase debt, even if the refinance only was to obtain a lower interest rate.

Californians who refinance a property currently do not have protection if they default on a mortgage greater than the property’s value. Called a “deficiency” liability, under current California law, the lender can sue the former homeowner for the amount of the deficiency even after taking back the property.

Recent years of low interest rates and aggressive marketing campaigns by lenders have induced tens of thousands to refinance mortgages. Few homeowners realized that by refinancing their mortgage, they were forfeiting their protections and now are personally liable.

Click here to view article printed in the Los Angeles Business Journal, May 18, 2010

Fabulous New Listing in Santaluz Just East of Fairbanks Ranch

2010-06-10T08:45:00.000-07:00

Offered at $1,135,000

Welcome to your new home situated on a highly sought-after cul-de-sac location in the guard-gated community of "Santa Monica at Black Mountain Ranch." Priced below comps, this exclusive residence features loads of upgrades including granite countertops, travertine and slate flooring, decorative designer paint selections, plantation shutters, cherry raised panel cabinetry, 8 ft. solid core doors, arched doorways, security system, surround sound and more!

Mature landscaping offers sanctuary with utmost privacy; including a sandbox for the kids.

Dramatic volume ceilings, Anderson exterior doors, epoxy coating in garage, Wolf appliances, Hunter ceiling fans in family room and nearly every bedroom, travertine and slate fireplace surrounds. Loads of storage! HUGE pool sized yard, plumbed and wired for hot tub. Walking distance to award-winning elementary school.

Community is loaded with amenities including pool, spa, barbecues, trails, picnic area, playground, park, volleyball, basketball, tennis and exercise facility.

For more information about this prime property or to schedule a showing, call Carylee Stone at 858-344-2632.

New HAFA Guidelines

2010-06-09T18:15:00.000-07:00

Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac last week released guidelines for implementing the Treasury Dept.’s Home Affordable Foreclosure Alternatives Program (HAFA). The new guidelines apply to loans owned or guaranteed by the GSEs; servicers are required to implement the new policies no later than Aug. 1.

While largely consistent with the HAFA guidelines for non-GSE mortgages, both Fannie and Freddie have implemented changes. To qualify for the Freddie Mac HAFA program, borrowers must be more than 60 days delinquent and have cash reserves of less than $5,000 or three times the current monthly mortgage payment, whichever is greater. Similar to the non-GSE HAFA program, Fannie Mae allows borrowers to qualify if they are at imminent risk of default. However, Fannie prohibits borrowers from participating in HAFA if the borrower: Has the ability to continue making mortgage payment, but chooses not to do so; has substantial encumbered assets of significant cash reserves equal to or exceeding three times the borrower’s total monthly mortgage payment or $5,000, whichever is greater; or has high surplus income.

Fannie and Freddie both allow the real estate commission in the listing agreement, but not more than 6 percent. Consistent with the non-GSE HAFA program, Fannie and Freddie guidelines do not permit subordinate lien holders to require contributions from the real estate agent or borrower as a condition for releasing its lien and releasing the borrower from personal liability.

Fannie May guidelines: https://www.efanniemae.com/sf/servicing/hafa/
Freddie Mac guidelines: http://www.freddiemac.com/singlefamily/service/hafa.html

Banks Oppose Bill to Protect Borrowers

2010-06-02T12:22:00.000-07:00

The California Association of Realtors is sponsoring SB 1178 (Corbett) to extend anti-deficiency protections to homeowners who have refinanced "purchase money" loans and are now facing foreclosure. Most homeowners didn't even know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender.

SB 1178 was two votes short of passage last week and is now being amended to remove the provision about "cash out" refinances. With this amendment the borrower will still be protected on a "purchase money" mortgage when that mortgage is refinanced but not on any cash out. SB 1178 will be now be voted on again on June 3, 2010 in the Senate.

California has protected borrowers from so called "deficiency" liability on their home mortgages since the 1930s, but the evolution of mortgage finance requires the statute to be updated.

Current law says that if a homeowner defaults on a mortgage used to purchase his or her home, the homeowner's liability on the mortgage is limited to the property itself. The law has worked well since the 1930s to protect borrowers, ensure the quality of loan underwriting and allow borrowers who are brought down by financial crisis to get back on their feet.

Unfortunately, the 1930s law does not extend the protection for purchase money mortgages to loans that re-finance the original purchase debt -- even if the re-finance was only to gain a lower interest rate. Recent years of low interest rates have induced tens of thousands of homeowners to re-finance their mortgages, yet almost no one realized that by re-financing their mortgages to obtain a lower rate, they were forfeiting their protections. These borrowers became personally liable for the balance of the loan.

Mortgage Rates Hit Lowest Levels in Years!

2010-05-20T12:45:00.000-07:00

DOW JONES NEWSWIRES
--By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com

Mortgage rates declined again this week, deepening from last week's levels that were already the lowest of 2010, with many reaching the lowest levels in years, according to Freddie Mac's (FRE) weekly survey of mortgage rates.

They have followed U.S. Treasury yields lower the past several weeks as investor concern builds about Europe's economic future. The benchmark 10-year yield hit a 5 1/2-month low earlier Thursday.

Freddie Mac Chief Economist Frank Nothaft noted that the low rates, coupled with tax credits from the U.S. government, have helped to strengthen the housing market. "Moreover, home builder confidence rose for the second straight month in May to the highest level since August 2007," he noted, citing National Association of Home Builders/Wells Fargo Housing Market Index data.

The 30-year fixed-rate mortgage averaged 4.84% for the week ended Thursday, down slightly from last week's 4.93% average but up a hair from 4.82% a year ago. Rates on 15-year fixed-rate mortgages were 4.24%, down from 4.3% and 4.5%, respectively, to hit the lowest level since Freddie began tracking such loans in August 1991.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.91%, down from last week's 3.95% and 4.79% a year earlier, setting a new low since Freddie started keeping score in 2005. One-year Treasury-indexed ARMs hit a 5 1/2-year low of 4%, down from 4.02% and 4.82%, respectively.

To obtain the rates, the fixed-rate mortgages required payment of an average 0.7 point, while the adjustables had an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

It's a great time to buy, Call Carylee Stone today to schedule an appointment, 858-344-2632.

California's Tax Credit Monies May Run Out

2010-04-15T16:51:00.000-07:00

The $100 million allocated for California's first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.'s Economics team. California's Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied. However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis.

C.A.R.'s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters. It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit. If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above.

Applications for the California tax credit must be faxed to the FTB after escrow closes. The FTB will update its website when the 2010 application form and other information become available.

To take advantage of this tax credit while you still can, contact Carylee Stone at 858.344.2632.

Homeowner's NOT Taxed on Forgiven Mortgage Debt

2010-04-14T15:15:00.000-07:00

Governor Schwarzenegger on Monday signed SB 401 (Wolk) into law providing distressed homeowners with state tax exemption on debt forgiven in a short sale, foreclosure, or loan modification. Effective immediately, this bill generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a qualified principal residence, borrowers now will be exempt both from federal and state income tax consequences. The tax exemptions apply, with certain restrictions, to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

For more information about mortgage forgiveness tax consequences, visit the Franchise Tax Board and the Internal Revenue Service. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

If you are considering selling your home, contact Carylee Stone at 858.344.2632 for a detailed property analysis.

Healthy Gain in Home Sales. Spring Surge?

2010-04-07T18:50:00.000-07:00

Pending home sales rose in February 2010, potentially signaling a second surge of home sales in response to the home buyer tax credit, according to the National Association of Realtors.

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in February, rose 8.2% to 97.6 from a downwardly revised 90.2 in January, and remains 17.3% above February 2009 when it was 83.2. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR (National Association of Realtors) chief economist, said the improvement is another hopeful sign. “The rise in buyer contact activity may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten,” he said. “We need a second surge to meaningfully draw down inventory and definitively stabilize home values.”

The PHSI in the Northeast rose 9.0% to 77.7 in February and is 18.9% higher than February 2009. In the Midwest the index jumped 21.8% to 97.9 and is 18.7% above a year ago. Pending home sales in the South increased 9.2% to an index of 107.0, and the index is 17.5% higher than February 2009. In the West the index fell 4.8% to 98.0 but is 14.6% above a year ago.

“Anecdotally, we’re hearing about a rise of activity in recent weeks with ongoing reports of multiple offers in more markets, so the March data could demonstrate additional improvement from buyers responding to the tax credit,” Yun said.

Home Affordable Foreclosure Alternatives Program (HAFA)

2010-04-05T14:10:00.000-07:00

In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program takes effect today, April 5, 2010.

HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP (including HAFA) is available by clicking here.

HAFA Provisions

Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.

Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.

Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).

Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).

Uses standard processes, documents, and timeframes/deadlines.

Provides the following financial incentives:

- $3,000 for borrower relocation assistance;

- $1,500 for servicers to cover administrative and processing costs;

- Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.

Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

Home Affordable Foreclosures Alternatives Program: Guidelines and Forms

How to Negotiate Your Own Loan Modification

2010-04-01T18:21:00.000-07:00

Decreases in property values, loss of jobs and other factors have resulted in 1 in 8 homeowners finding themselves behind on their payments. Lenders, backed by government programs such as HAMP (Home Affordable Modification Program), are modifying loans in increasing numbers in lieu of foreclosure.

Over the last couple of years, difficult economic times have introduced companies that charge exorbitant fees to work with lenders to modify home loans. Unfortunately, many (certainly not all) are fraudulent or act with limited integrity. Please note that it is illegal for individuals and businesses offering loan modification services to charge any up-front fees.

I generally encourage homeowners to negotiate directly with their bank by filing a workout/hardship package. Take a peek at this e-book from US Home Loan Advocates on how to pursue your own loan modifications. This is a fee-based service company and I do not advocate or recommend using their services, I merely found the attached information reasonably comprehensive.

Before contacting your bank, I suggest you put together the following items: current driver's license, two most recent pay stubs, two most recent W2s, two most recent tax returns, three most recent bank states, and other asset statements, a hardship letter and a list of your current expenses (financial worksheet).

Good luck to you and happy negotiating!

More underwater homeowners to get cuts in principal balance

2010-04-01T17:20:00.000-07:00

Lenders have resisted forgiving debt as part of mortgage modification programs, but the outlook for that step is changing.

For hundreds of thousands of homeowners who are underwater on their mortgages, it’s been a tantalizing question: Is there any way that our lender might agree to lower the amount we owe – not just the monthly payments, but the principal debt itself?

Read the full article from the Los Angeles Times, please click here.

HAMP Adjustments May Help Struggling Homeowners

2010-03-31T19:18:00.000-07:00

The Obama administration on Friday announced adjustments to the Home Affordable Modification Program (HAMP) and to the Federal Housing Administration (FHA) program to assist homeowners struggling to meet their mortgage obligations. The program adjustments target three groups: Unemployed homeowners who are unable to make their mortgage payments; underwater homeowners; and homeowners behind on their payments and seeking loan modifications.

Unemployed homeowners may qualify for three to six months of reduced payments while searching for new employment. During this time, payments will be reduced to 31 percent of their current gross monthly income. To qualify, borrowers must, among other things, be living in their homes, have loan balances less than $729,750, provide verification of unemployment benefits, and request assistance within 90 days of delinquency on the mortgage.

Underwater homeowners—those who owe more than their home currently is worth—may be eligible for a new FHA refinance option that will allow those who are current on their mortgage payments to refinance their mortgages into new FHA-insured loans equal to no more than 115 percent of their home’s current value. The difference between the original loan balance and the new balance gradually will be forgiven if the homeowner remains current on payments for three years.

Homeowners seeking mortgage modifications under HAMP may be eligible for mortgage principal reductions. Although lenders always have had the option to do so, many have chosen instead to reduce interest rates. However, under the new guidelines, lenders reducing mortgage principal may receive higher financial incentives. The incentives will be paid jointly by the private sector and the federal government through a $50 billion allocation from the Troubled Asset Relief Program (TARP).

The program changes are expected to go into effect in the fall. However, a measure to offer larger incentives to lenders who facilitate short sales or deeds-in-lieu of foreclosure, as well as assistance for unemployed homeowners, will be in place within a few weeks or months, according to the administration.

California Short Sellers to Pay Tax on Mortgage Debt

2010-03-31T19:15:00.000-07:00

Governor Schwarzenegger last week vetoed a bill that would have prevented California homeowners who sold their homes via short sales or received loan modifications in 2009 from being taxed on the forgiven mortgage debt. Schwarzenegger vetoed the bill, which would have aligned much of the state’s tax code with that of the federal government’s, because it contained an unrelated provision regarding tax refunds for the state’s largest businesses. Although the governor vetoed this particular bill, he expressed his support for banning taxation of forgiven mortgage debt, and immediately called for the legislature to send him a bill to provide tax forgiveness prior to the April 15 tax-filing deadline.

Time is Running Out for Homebuyer Tax Credits

2010-03-31T09:01:00.000-07:00

Earn up to $18,000 in Combined Tax Credits!

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 expire soon, 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 California Rev. and Tax Code section 17059.1(a)(4)]. Other terms and restrictions apply to both tax credits.

Click the following link to access Homebuyer Tax Credit Chart 2010.

Good News for FHA Buyers

2010-03-30T16:32:00.000-07:00

Guidance on Borrowers current at the time of Short Sale Borrowers are considered eligible for a new FHA-insured mortgage if they were current on their mortgage and other installment debts at the time of the short sale of their previously owned property, and the proceeds from the short sale serve as payment in full. Reference: For detailed information, see “Short Sales” at 4155.1 4.C.2.l.

TRANSLATION: If a homeowner/borrower didn’t miss any payments prior to or during a short sale transaction AND their overall credit history has not been impacted, they CAN buy immediately following a short sale using FHA financing. The focus seems to be on rewarding those who made their payments on time--those who chose to do a short sale versus those who missed payments prior to a short sale. Another key is the demand letter from the existing short sale lender must show that they are accepting the proceeds as payment in full.

Please note, short sellers using the new HAFA program wouldn’t be eligible for new financing for 3 years because to be eligible for HAFA you need to be seriously delinquent.

More Information on Assembly Bill 183

2010-03-25T13:42:00.000-07:00

AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to California Association of Realtors' research conducted last year.

The state’s previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner. Unlike last year’s legislation, AB 183 adds a tax credit for the purchase of an existing home by a first-time home buyer.

AB 183 will significantly contribute to the effort to stimulate jobs-creation within California's housing market by helping to incentivize first-time home buyers to purchase homes that have been abandoned, foreclosed upon and returned to the lender, or have been sitting on the market for extended periods of time. It is these homes that will require substantial rehabilitation by the new owners, which will in turn generate a tremendous increase in jobs and accessory purchases connected to home improvement activities.

It's a great time to buy! Call me today and let's get started, 858-344-2632.

Governor Signs New Home Buyer Tax Credit

2010-03-24T14:40:00.000-07:00

The California legislature passed AB 183, providing $200 million for home buyer tax credits. Part of a package of four bills passed at the request of the Governor, AB 183 is designed to help stimulate the economy and create jobs. It allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.

This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).

3 Reasons Why Those Who Don't Buy Now Might Regret it Later

2010-03-18T13:05:00.000-07:00

1. They won't receive a sizeable amount of money from Uncle Sam

2. They might not lock-in on historically-low interest rates

3. They might miss out on record home price affordability

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.

23 percent of California home buyers purchased a home in 2009 due to the perception that interest rates will rise and they would be priced out of the market, according to C.A.R.’s 2009 Survey of California Home Buyers. 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. 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. The Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac since early last year. The purchase program has helped maintain low interest rates for borrowers. As planned, the Fed this week announced it will stop purchasing these securities at the end of this month. Many analysts anticipate this will result in a slight rise in rates by year’s end.

What does this mean for you? Interest rates have hovered at or near historic lows for much of the past 18 months, resulting in lower payments for many borrowers. With the Fed discontinuing its purchase program, some analysts believe a rise in interest rates could range from 0.25 percent to as much as 1 percent by the end of 2010.

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. Before you sign a contract for a new place, ask me 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.

This may be the best time in history to buy a home! Call me today to discuss your options: 858-344-2632

Food for Thought

2010-03-15T15:12:00.000-07:00

A Bit of Social Security History...

Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. He promised:

1. That participation in the Program would be completely voluntary. It is no longer voluntary.

2. That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the program. It's now 7.65% on the first $90,000.

3. That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year. It's no longer tax deductible.

4. That the money would be put into the independent "Trust Fund," rather than into the general operating fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other Government program. Under Johnson the money was moved to the General Fund and spent.

5. That the annuity payments to the retirees would never be taxed as income. Under Clinton & Gore up to 85% of your Social Security can be taxed.

Many of us have paid into FICA for years and are, or will be, getting taxed on 85% of the money we paid to the Federal government to "put away" for us. Since their idea of saving money clearly isn't working, perhaps you might want to consider an alternative method of wealth building. Hmmm, may I suggest investing in real estate?...I KNOW A GOOD REALTOR.