The Certified Distressed Property Institute has just released the National Mortgage Delinquency Numbers for the first quarter of 2009.  These are statistics compiled by ethe Mortgage Broker's Association and reflect a significant increase in the number of homeowners in trouble with their mortgage.   The Certified Distressed Property Institute trains real estate agents to better help distressed homeowners avoid foreclosure.  THeir web site is a wealth of informations on the subject and worth a visit.  Check it out at: http://www.CDPE.com  There are over 500,000 licensed real estate agents in California.  There are only a little over 8000 certified CDPE agents in the country.  I recommend that distressed home owners consult a CDPE agent for assistance.     Distressed homeowners can find h... 06/26/2009

CONSUMER ALERT!   California Department of Real Estate issues a fraud warning for Home Owners in Financial Distress! FINALLY, the California Department of Real Estate has issued a fraud warning to financially distressed California home owners, warning about loan modification scams rampant in the market place today.  Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations.  In addition, just since last October the DRE has filed more than 200 Desist and Refrain Orders!   Obviously, the hucksters and con artists have found easy pickings with their loan modification scams. Unfortunately, not enough of these people will end up in jail. A list of the companies that the DRE has filed an action against can be vie... 06/24/2009

LOAN MODIFICATION Part II This is a continuation of yesterday's post on Loan Modification. The Market  In recent years investors were clamoring for ever increasing returns on their investments.  Financial markets developed more risky loan products to meet that demand, knowing full well that in order to increase the reward there had to be an increase in risk.  These products allowed buyers to qualify for purchases that they could not otherwise afford and, they met the investor's need for a higher return in investment.  Real estate related financing was riding high. Home buyers were seduced into accepting loans that provided initially low monthly payments because those products allowed a buyer to purchase a larger and nicer home. Some even accepted negative amortization loans (a loan with... 06/19/2009

    LOAN MODIFICATION     It is an unfortunate fact that far too many homeowners are in financial distress right now and are having trouble making their mortgage payment, or have stopped paying all together.  Many did not understand all of the ramifications of the commitment that they made when they signed their mortgage papers during escrow.  Others understood the possible changes that would be made at some time in the distant future but were sure that the worst case scenario would not happen to them.     Irrespective of the causes of this phenomenon, it has had a major impact on our economy, not to mention the families involved.  Many homeowners are struggling to meet their commitments even if they have not incurred financial hardship.  Some have decided not to continue to pay for a m... 06/18/2009

Short Sales What is a short sale?   A short sale is transaction in which the seller is attempting to sell their property for less than they owe the lien holder or lien holders.  In almost all cases something has happened that prevents the homeowner from being able to make their mortgage payments.   The difficult part of this process is getting the lien holder or lien holders to accept the short pay.  Short sale properties are available everywhere and offer the potential of being a GREAT BUY.  However, they usually take a long time to complete and, because many lien holders can not or will not accept a short pay, many attempts at a short sales fail.  Also, many buyers give up in frustration and move on to another property because they get tired of waiting for lien holder's approval.  Do ... 06/17/2009

New Foreclosure Prevention Act For California Now Law   California's new Foreclosure Prevention Act went into effect on May 22, 2009.  The object of the exercise is to delay the foreclosure process an additional 90 days, extending the period to a total of 180 days for those who qualify.  The object is to provide more time for lenders to work with borrowers to provide loan modifications, turning "non performing assets" into productive loans and keeping borrowers in their homes.         The question is, will it really help or is it just politics as usual?  As with so many of these statutes, in order for them to survive the political process little viable substance remains.  The end product is narrowly defined and the number of distressed home owners that will benefit is limited.   The 90 ... 06/16/2009

Is there a light at the end of the tunnel?  Feedback indicates that the Federal Making Home Affordable program is having an impact.  Unlike the Hope for Homeowners program that was stifled by eligibility requirements and received less than 100 applications nation wide, the Treasury Department reports that over 120,000 homeowners have actually completed loan modifications with the Making Home affordable program. It is good to hear that a Federal program is actually working.  Not just another marketing scam so prevalent in the market place today! For the complete RISMEDIA story select this link: http://rismedia.com/2009-06-11/federal-homeowner-program-may-be-making-a-dent-in-foreclosures/ Here is the link directly to the Making Home Affordable program: www.makinghomeaffordable.gov As alwa... 06/12/2009

  SENIORS BEWARE!   Not all reverse mortgages are created equal.   Federal banking regulators are concerned about reverse mortgages and related consumer protection issues.    Reverse mortgages are loans for borrowers over 62 years of age who can live off the equity they have in their homes as they get older.  There are no monthly payments for the borrower.  They are borrowing their equity.  After they die the home becomes the property of the bank.   Most reverse mortgages are insured by the Federal Housing Administration.  However, there are new products on the market that are “proprietary.”  These products offer the consumer less protection.   Concerned that the “proprietary” reverse mortgages have the earmarks of the subprime mortgages that were a major cause of the mortgage “melt dow... 06/12/2009

EL DORADO HILLS, CA REO (BANK OWNED) SALES DATA FOR MAY 2009   This is a continuation of my monthly report on Bank Owned home sales data for El Dorado Hills, CA.  This report covers REO homes sold in May of 2009. There were nineteen REO homes sold in May, two more than sold in April.  The average days-on-market increased significantly to 119 days, up from 84 days in April. Several old inventory homes were cleared out in May; one had been on the market for 420, days, one for 298 days, one for 255 days and seven others with more than 100 days on the market.  Only 10.6 % of he homes sold had been on the market for less the fourteen days.  That is the smallest percentage since I have been tracking REO sales. The cost per square foot in May decreased to $ 133, down from $ 148 in April.  The ... 06/09/2009

Bank Owned Home Sales Activity Report for El Dorado Hills, CA - Week ending 5/24/09 Single Family Homes (excluding condos / townhouses / multi-family) Number currently for sale:   17Number that sold last week (5/18-5/24/09):   3              Number that are currently pending:   36 Condos and Townhouses and Multi-Family Number currently for sale:   0Number that sold last week (5/18-5/24/09):   0Number that are currently pending:   0 UPDATED DAILY --- To see a current list of bank owned homes that are listed for sale in El Dorado Hills, California: Click Here .  Buying a bank owned home, also called REO's (real estate owned - by banks) and foreclosure property, can be an excellent way to get a great deal on your next home. 05/25/2009

Bank Owned Home Sales Activity Report for El Dorado Hills, CA - Week ending 5/17/09 Single Family Homes (excluding condos / townhouses / multi-family) Number currently for sale:   19Number that sold last week (5/11-5/17/09):   6              Number that are currently pending:   34 Condos and Townhouses and Multi-Family Number currently for sale:   0Number that sold last week (5/11-5/17/09):   0Number that are currently pending:   0 UPDATED DAILY --- To see a current list of bank owned homes that are listed for sale in El Dorado Hills, California: Click Here .  Buying a bank owned home, also called REO's (real estate owned - by banks) and foreclosure property, can be an excellent way to get a great deal on your next home. 05/22/2009

A client recently asked me, what is a "Short-Sale?"  A short-sale is a home for sale that is worth less than what is owed to the bank(s) on the loan(s). The home seller and the agent set the asking price "below market" to attract a buyer and get the home under contract quickly. They usually don't care what the home sells for because the seller is not getting any money from it, they are just trying to avoid foreclosure. Once an offer comes in, it is submitted to the bank(s) for review.  Typically, there is a 1st, 2nd and sometimes a 3rd loan on the home.  Since the home is usually worth less than the 1st, the 1st lender approves the sale, the 2nd and 3rd lenders aren't entitled to any money, so they say "no," and then they all argue about it for months on end until the 1st lender gets fr... 05/22/2009

El Dorado Hills, CA REO (Bank Owned) Sales Data for April 2009.   For more than eighteen months I have been reporting REO sales data for Folsom and El Dorado Hills, CA.  In 2009 I separated the two markets because they were becoming less similar with each passing month.   In April of 2009, there were seventeen REO properties sold in El Dorado Hills, two less than in March.  The average days-on-market statistic increased to 84, up from 47 in March.  There were five homes that took over 100 days to sell and one of them took 203 days. However, 23.6% of the REO homes sold in fourteen days or less, proving that well priced properties sell quickly in any market.   The seventeen REO homes sold represent 44.8% of all homes sold in El Dorado Hills in April, down from the 50.0% in March.  That Ma... 05/13/2009

I woke early this morning, while craving a beautiful sunrise, and coffee.  Once in the car however, the steering wheel seemed to transport me via auto pilot, east on Highway 50, a few miles, to El Dorado Hills.  The sunrise giving birth to the day, just beyond the Sierra Foothills, wanted an audience.Town Center in El Dorado Hills (East of Sacramento), has emerged into a warm and delightful center of boutiques, dining places, lodging, shopping, cinemas, a Mercedes dealership, and a Starbucks.  Although other Starbucks are closer to my home, there is something very special about experiencing a Mocha Latte at this very special location.  It was so early this morning, that few souls were available to disturb the tranquility.For a complete list of shops and vendors you can explore their we... 05/12/2009

There is still great inventory, but will they be affordable a year from now?   Right now there is still choice, and excellent deals to be made.  But the lowest priced homes are being gobbled up.  El Dorado Hills has 337 active listings. Home prices range from $289,900 for a 3bed/2bathto a newer 6900 sq ft home in Serrano priced at $2,995,000.  There are 57 homes for sale priced under $400,000 and 78 homes priced over $1,000,000 indicating both affordable and luxury living is available in El Dorado Hills.  There are 93 pending sales with average days on the market of 95. There are 107 sold listings in the last 3 months with average days on the market stable at 68. Average list price to sale price is stable at 96.7%. 05/11/2009

Bank Owned Home Sales Activity Report for El Dorado Hills, CA - Week ending 5/03/09 Single Family Homes (excluding condos / townhouses / multi-family) Number currently for sale:   20Number that sold last week (4/27-5/03/09):   7              Number that are currently pending:   37 Condos and Townhouses and Multi-Family Number currently for sale:   0Number that sold last week (4/27-5/03/09):   0Number that are currently pending:   0 UPDATED DAILY --- To see a current list of bank owned homes that are listed for sale in El Dorado Hills, California: Click Here .  Buying a bank owned home, also called REO's (real estate owned - by banks) and foreclosure property, can be an excellent way to get a great deal on your next home. 05/05/2009

Bank Owned Home Sales Activity Report for El Dorado Hills, CA - Week ending 4/26/09 Single Family Homes (excluding condos / townhouses / multi-family) Number currently for sale:   24Number that sold last week (4/12-4/19/09):   3              Number that are currently pending:   34 Condos and Townhouses Number currently for sale:   0Number that sold last week (4/12-4/19/09):   0Number that are currently pending:   0 UPDATED DAILY --- To see a current list of bank owned homes that are listed for sale in El Dorado Hills, California: Click Here .  Buying a bank owned home, also called REO's (real estate owned - by banks) and foreclosure property, can be an excellent way to get a great deal on your next home. 04/27/2009

The El Dorado Chapter of Women's Council of Realtors will be hosting our 6th Annual Grape Escape Event Friday, May 8th, 2009 - 5:30-9:00PM at Mercedes Benz of El Dorado Hills.  We will have local food and wine vendors, live music, and a silent auction.   This year we will be benefiting Family Connections - "Strengthening Families and Enriching Communities" and CASA - Court Appointed Special Advocates. Tickets may be purchased as Lyon Real Estate in El Dorado Hills, 3900 Park Drive- $25 each. This is a wonderful event and well worth the time and effort. Please join us. For more information contact:  Nancy Murphy 530.957.1950 or Judy Hawkins 916-955-2198                                                                                                                                         ... 04/25/2009

Bank Owned Home Activity Report for El Dorado Hills, CA - Week ending 4/19/09 Single Family Homes (excluding condos / townhouses / multi-family) Number currently for sale:   12Number that sold last week (4/5-4/12/09):   2              Number that are currently pending:   22 Condos and Townhouses Number currently for sale:   0Number that sold last week (4/5-4/12/09):   0Number that are currently pending:   0 UPDATED DAILY --- To see a current list of bank owned homes that are listed for sale in El Dorado Hills, California: Click Here .  Buying a bank owned home, also called REO's (real estate owned - by banks) and foreclosure property, can be an excellent way to get a great deal on your next home. 04/19/2009

Latest News and Topics of Interest:  The biggest news to develop in March was the long awaited arrival of lower interest rates.  For months I have referenced rumors and mortgage insider speculation regarding falling mortgage rates, and in March it finally came true.  March began with average 30 yr. fixed mortgage rates in the Western U.S. at 5.06% and by month's end they had dropped to 4.71% (both with about 1 point).  Since the keys to the housing recovery are low interest rates, fewer foreclosures and lower unemployment rates, and the last two are difficult to control, you can expect government intervention in the treasury markets to continue and mortgages to remain cheap for the foreseeable future. Housing bottom looming?: Time will tell, but one of the interesting stories I have bee... 04/19/2009