|
|
 Caylyn Brown  Tuesday, October 26th, 2010  Legislatively, it’s looking to be a positive year for REALTORS® in California. The second year of the Legislature’s two-year session wrapped up in early September, and we have three sponsored bills sitting on the Governor’s desk as of this writing.
Senate Bill 1178 (Corbett) will extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure. C.A.R. sponsored this critical piece of legislation to protect homeowners in foreclosure from attempts by lenders to sue the homeowners for the difference between the value of the foreclosed property and the outstanding balance on the mortgage loan. California has protected borrowers from so called “deficiency” liability on their home mortgages since the 1930s, but the evolution of mortgage finance requires that the statute be updated. Current law says if a homeowner defaults on a mortgage used to purchase their home, the homeowner’s liability on the mortgage is limited to the property itself. The 1930s law does not extend the protection for purchase money mortgages to loans that re-financed the original purchase debt – even if the refinance was only to gain a lower interest rate. Recent years of low interest rates have induced tens of thousands of homeowners to refinance their mortgages, yet almost no one realized that by re-financing their mortgage to obtain a lower rate, they were forfeiting their protections. These borrowers became personally liable for the balance of the loan. Should the Governor sign SB 1178 into law it would correct this deficiency, protecting people who refinanced their home for a lower interest rate, without taking any money out of their home.
Senate Bill 1427 (Price) would require local governments to provide the owner of a foreclosed property a notice of violation for overgrown weeds, broken windows, or other similar problems, and an opportunity to correct those violations before imposing a fine or penalty. Costs of nuisance abatement measures, if provided by local government, should the property owner not make those repairs themselves, must not exceed the actual and reasonable costs of nuisance abatement. Currently, some local governments are imposing civil fines and penalties up to $1,000 per day for failure to maintain a vacant property. Properties need to be maintained so as to not to cause blight, bringing down the value of an entire neighborhood. An extremely high rate of fines will deter buyers from purchasing, fixing and getting these homes occupied, which is the ultimate goal. Should Governor Schwarzenegger sign this bill, it will be a good compromise for all parties involved,
Continue reading: Recap of the 2010 Legislative Season
Daniel Allen Thursday, October 21st, 2010
Join the Sacramento Association of Realtors Young Professionals Council for the 2nd Annual Gala Event, The Masquerade Ball! The first 50 people who sign up and pay in advance get a free feathered mask at the door!
For just $35 you can enjoy food from Tokyo Fro, Zocalo, and BJ’s Brewery (and more [...]
Daniel Allen Thursday, October 21st, 2010
Supra eKEY App
Supra’s new iPhone app & adapter is available now!
So convenient—the adapter is small, fits on your key chain and is powered by your iPhone. A one time fee of $54.95 (plus tax) may be a small price to pay for the convenience of not having to remember to charge [...]
Janelle Fallan Tuesday, October 19th, 2010
 The Sacramento Association of REALTORS®’ has become a perennial on the list of the top 25 area companies for corporate philanthropy, as compiled by the Sacramento Business Journal and published each April.
SAR’s position at #15 in 2010, in the midst of mostly for-profit businesses and in the midst of a real estate downturn, is a source of pride and an indicator of how REALTORS® are connected with the community and how they make a difference.
SAR budgets two to three per cent of its gross revenue each year for civic and charitable activities. Most of the other businesses on the Business Journal’s list donate less than one per cent of their revenues toward charitable causes.
CanTree, Masters Club and the Young Professionals Council all raise money independently of the SAR budget and make their own charitable contributions, although all the activities are a reflection of REALTORS®’ generosity. The 2009 Masters Club charities, receiving $3158.88 apiece – the proceeds from the Masters Club annual golf tournament – were Wellspring Women’s and Children’s Center, The GreenHouse and Wind Youth Services. YPC donated $6481.42 from its own fundraising activities. CanTree donated $65,000 to the Salvation Army. In its 27 years of existence, CanTree has raised more than $2 million for the Salvation Army in Sacramento.
REALTOR® participation for Rebuilding Together, Loaves and Fishes, the American River Parkway cleanup and many other activities represent a small portion of what Members give to the community. SAR Members also lead Girl Scout troops, organize neighborhood yard sales and Neighborhood Watch programs and generally endeavor on their own to support their communities.
Continue reading: REALTORS® Rank High in Philanthropy
Janelle Fallan Friday, October 15th, 2010
September showed little signs of movement, keeping the Sacramento housing market relatively flat with sales volume decreasing 4.2% from 1,496 units to 1,433 units. Making up these sales were 547 REOs (38.2%), 362 short sales (25.3%) and 524 conventional sales (36.6%). These numbers have changes slightly month to month with REOs up 5.5% and short sales and conventional sales down 4.8% and 1.6%, respectively.
The median homes sales price rose decreased 3.2% from $186,000 to $180,000. Compared with the same month last year ($183,000), the number is down 1.6%. The $200,000 – $249,999 price range mode still accounts for a majority (18.4% or 263 units) of the 1,433 total sales this month, while homes under $100,000 totaled 205 (14.2%) units. Conventional financing continued as the primary source of all home and condo sales (520, 33.4%) with cash (443, 28.4%) and FHA financing (455, 29.2%) making up the two other large categories. VA loans (49, 3.1%) and other financing (91, 5.8%) rounded out the remainder. The other category includes CalVet, contract of sale, creative, farm home loan and owner financing. The median amount of days spent on the market (from list date to opening escrow) was 39 – up from the 35 median DOM of sales in August.
The Total Listing Inventory has recently been split up to more accurately display the current market. Active Listings numbered 5,139 properties and Active Short Sales Contingent showed 1,736. Active Short Sale Contingent properties are short sale properties on which initial offers have been made and are not entirely “active.” After breaking down Total Listing Inventory, we find that the Housing Market Supply figure is more accurately reflected. The Housing Market Supply figure for September was 3.6 Months – up from 3.4 Months in August. This figure represents the amount of time – in months – it would take to deplete the Active Listing Inventory (5,139) given the current number of closed escrows (1,433). According to MetroList® MLS data, the average home was 1,706 square feet. Of the 1,433 sales this month, 139 (9.6%) had 2 bedrooms or fewer, 756 (52.7%, up 50% from last month [34.6%]) had 3 bedrooms, 416 (29%) were 4 bedroom properties and 122 properties (8.5%) had 5+ bedrooms.
Continue reading: Median Sales Price Sees Slight Dip, Sales Volume Remains Flat
Patti Martinez Friday, October 15th, 2010
Summer is over, kids are back in school, there’s a bit of a chill in the air these evenings and fall is just around the corner. Fall energizes me and always gets me enthused about contacting all of my past clients and people in my “sphere”– probably more so than at any other time of the year.
If you get energized like I do, I recommend you put these dates in your Blackberry or iPhone: FRIDAY, NOVEMBER 19 is the Masters Club Annual Breakfast to be held at Del Paso Country Club. We’re very excited this year to have Geoff Petrie of the Sacramento Kings as our keynote speaker. This will definitely be a sold out event, so be sure to make your reservations as soon as invitations go out. This event also highlights the three charities that are the recipients of our golf tournament proceeds. It will be a very nice affair. We hope you will join us.
Then mark your calendar for MONDAY, NOVEMBER 29 for our last prep and serving day of the year at LOAVES AND FISHES. We had so many REALTORS® volunteer this past year, some who had never participated before. Each one of those made a point of telling me that they were really glad they “stepped out of their comfort zone” and joined us. They had no idea how rewarding it would be. I’d like to thank every one of you who helped out. It’s a wonderful time to work side by side with fellow REALTORS® and Affiliates, and also a time to give back to those in need. If you’d like to be a part of our group on the 29th of November, email me and I’ll put you on the list and forward you a map of how to get there. We need about 12-15 for each shift, so we can always use your help (pmartinez@golyon.com).
By the time you read this, our Masters Club Golf Tournament will have just taken place and we will have raised lots of money for the three charities that were the designated recipients. I know the sign-ups were way ahead of the previous year and everyone was enthusiastically looking forward to a great day of golf and fun!
Continue reading: Masters Club Corner – October 2010
Nelson Janes Thursday, October 14th, 2010
 Starting in 2011, C.A.R. will be adding a $49 assessment to dues billings. Reprinted here is the information that C.A.R. has posted on their website.
Q. What is the new REALTOR® Action Assessment and when will it become effective?
A. It’s a $49 assessment that will go into effect with the 2011 dues billing cycle.
Q. How will the assessment appear on the dues billing statement?
A. C.A.R. is working on a revised dues billing statement for 2011 for those members billed directly by C.A.R. and for those Associations who use the C.A.R.-produced billing statement.
Q. Is this assessment mandatory?
A. Yes. A member may decide to satisfy the assessment in one of two ways: (1) By either making a voluntary contribution to the State REALTOR® Action Fund, which will be put into C.A.R.’s political action committees [California Real Estate Political Action Committee (CREPAC) and/or the California Real Estate Independent Expenditures Committee (CREIEC)], or be used for other political activities, or (2) by opting to send the funds to the C.A.R. general fund for political purposes.
Q. Why was the assessment needed?
A. Whether it’s the legislature looking to tap REALTORS®, the transaction, or our industry for additional sources of funding, placing restrictions on private property rights or on our right to conduct business, organized real estate must be continually vigilant in Sacramento to ensure that our interests are fairly represented.
This is even truer in today’s fiscal environment, with politicians searching for every available means to cut the state’s ballooning deficits and produce a balanced budget. C.A.R.’s opponents — the trial lawyers, for example — spend millions of dollars every year to fund candidates and legislators who support legislation creating additional liability for our members, increasing the likelihood of litigation and making it more difficult and more costly to be in business.
C.A.R.’s California Real Estate Political Action Committee (CREPAC) used to be in the top 10 of political action committees (PACs) in California. It now ranks 37th, according to a recent study of PAC spending in California. Special interest groups, including many supported by public finances, outspend CREPAC on a regular basis. The political assessment adopted by the C.A.R. Board of directors will help rectify this growing imbalance.
Continue reading: California Association of REALTORS’® Government Relations Assessment
Steve Goddard Wednesday, October 13th, 2010
 Steve Goddard - 2010 C.A.R. President
Dear C.A.R. Member,
No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide.
While this situation is changing daily, I want to tell you what we currently know to answer any questions you may have.
- In late September and early October some lenders and servicers began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes.
- So far, only Bank of America has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order. Foreclosures in the other 23 states are processed through the court system.
- Non-judicial foreclosures in California, however, do have legal requirements that lenders must follow. For example, California law requires that lenders for certain mortgage loans made between Jan. 1, 2003, and Dec. 31, 2007, attempt to make contact with borrowers to discuss options for avoiding foreclosure at least 30 days before filing a notice of default. Lenders also must sign a declaration in the notice of default stating that they tried to contact the borrower, made contact with the borrower, or fall within an exception (such as a bankruptcy filing).
- The lenders and servicers that have placed their foreclosure moratorium on properties in the 23 states where courts are involved in the foreclosure process include: Goldman Sachs Group Inc’s Litton Loan Servicing, Ally Financial Inc.’s GMAC Mortgage unit, JPMorgan Chase, and PNC Financial.
- These lenders/servicers have only temporarily halted their foreclosures while they review their foreclosure process. This is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.
- This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government.
- Some members have begun to report the immediate impact of this moratorium on transactions that involve foreclosed properties. Delays in escrow and the removal of listed foreclosures are temporary results of this moratorium.
- The immediate impact on the market will be the slowing of home sales, which could put upward pressure on home prices in the short term. The long-term effect on the market is uncertain at this point as it depends how long the moratorium remains in place.
- Assuming the moratorium is lifted in the next month, the flow of REOs to the market should resume, but the uncertainty created by the moratorium may cause hesitation on the part of buyers.
- Federal agencies, including the Office of the Comptroller of the Currency, the Federal Housing Administration, and the conservator of Fannie Mae and Freddie Mac, have asked lenders and servicers to review their foreclosure processes. This review would apply to all states including those like California where the vast majority of foreclosures are non-judicial.
- The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete.
Continue reading: Recent Foreclosure Trends and Information
Vicki Cox Golder Tuesday, October 12th, 2010
 To: All REALTORS®
From: Vicki Cox Golder, 2010 NAR President
Date: October 12, 2010
Re: NAR Update: Foreclosures and Bank Meetings
Dear fellow REALTOR®,
Recently, there have been widespread reports of problems related to foreclosures. NAR has sent a letter to regulators expressing our concerns. We also have posted articles and talking points to help you answer questions from consumers and the media. Please visit Realtor.org/foreclosure for the latest developments and additional information.
On a separate note, the NAR Leadership Team has held several meetings during the past two months with the heads of major national banks to discuss problems with short sales and the availability of credit to potential buyers. Our position has always been that we want to help homeowners avoid foreclosure, whenever possible.
Below is a summary of the issues we have asked lenders to address. We also have posted a detailed report for your review on Realtor.org.
http://www.realtor.org/wps/wcm/connect/25887900443d5457b84ef934cafa6d66/gov_aff_bank_meetings.pdf?MOD=AJPERES&CACHEID=25887900443d5457b84ef934cafa6d66
Although we feel the banks have made some progress, it is clear that much still needs to be done. We will be meeting with Chase later this month, and those discussions will focus on the problems with foreclosures and short sales. You can help our efforts by sharing your experiences with NAR via e-mail at HAFA@realtors.org.
We thank you for your continued work on behalf of homebuyers and homeowners, and we look forward to seeing all of you in New Orleans this November.
Continue reading: NAR Update: Foreclosures and Bank Meetings
Scott Short Monday, October 11th, 2010
 CalHFA just brought back their FHA program as of September 7, 2010
It is a 96.5% of the sales price, 30-year fixed FHA loan not to exceed $417,000 loan amount. The borrower will need a 620 minimum (middle score of the three bureaus) credit score. Purchase money only loan. Requires homebuyer’s education for each borrower. The borrower must be a first-time home buyer (FTHB) or a qualified veteran pursuant to Heroes Earning Assistance & Relief Act of 2008, or located in a federally designated target area. Income and sale price restrictions do apply. Only single family residence, one unit including condo/PUD. Non-owner occupants not allowed. Manufactured homes and non-permitted additions are not allowed on the program. FHA less than 90 day flips where the seller is reselling for greater than 20% of their purchase price also not allowed on the program.
This new CalHFA FHA loan will allow the buyer to utilize the CHDAP (CalHFA Down Payment Assistance) program in conjunction. The buyer can borrow up to 3% of the sales price or appraised value, whichever is less. If you add 96.5% (FHA 1st mortgage) + 3% (CHDAP) = 99.5% loan, the buyer’s down payment would be ½%.
The program requires a minimum investment into the purchase of 1% of the buyer’s own funds. For more in depth details contact your authorized CalHFA mortgage professional. CRHMFA Homebuyers Fund (aka: National Homebuyers Fund) also announced a new loan program called the “CHF Platinum program”. The new CHF Platinum loan program provides downpayment for low-to-moderate income individuals and families purchasing a home in California as their primary residence. The downpayment assistance is currently in the form of a grant, sized at 3% of the first loan amount and can be used for downpayment and/or closing costs. This is not a bond program and not limited to first time home buyers. Eligible first mortgages include 30-year fixed term FHA, VA and USDA.
Continue reading: Change is Still in the Air
|
Register | Login
|
Recent Comments