CONSUMER ALERT–REFINANCING CAN BE A MISTAKE!!
CONSUMER ALERT!!!
Homeowners should be aware of the fact that there can be a danger to refinancing your home if your existing loan is a “purchase money” loan.
Here is the deal. California is a non recourse state. That means that if a homeowner runs into financial difficulty and can not keep up with their mortgage payments, they are better off dealing with their lender(s) if the loan(s) are purchase money loans. A purchase money loan is one which was obtained strictly for the purchase of a property. If that home owner ends up in a short sale situation (trying to sell the property for less than they owe the bank) their chances of having the outstanding balance on their loan(s) forgiven is covered by California statute.
If, however, they end up in a short sale situation after they have refinanced their loans, the lending institutions have legal recourse to come after them for the unpaid balance of their loan. They can loose their home and still owe the bank thousands of dollars.
It would be a prudent move to check out the impact of a refinance if the probability of delinquency and/or a short 
sale in the future. Refinancing to lower loan payments may be a good move but everything has to be weighed carefully before making that move.
At this writing thousands of adjustable rate loans are about to adjust, increasing the loan payments significantly. Borrowers facing this reality should have all of the facts before they refinance.
The California Association of Realtors are vocally supporting SB 1178 to extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure.
All of this is very confusing for most borrowers. Feel free to call and ask questions. If we do not have the answers we will point you in the direction of a reputable organization that can.
HAFA (Home Affordable Foreclosure Alternative) Program–Who Is Participating?
HAFA (Home Affordable Foreclosure Alternatives) Program. Part 6
Who is supporting The HAFA Program?
In earlier posts we have provided a lot of information about the new HAFA program. Detractors have said that if the program is voluntary it is not going to work. Only time will tell. However, many of the major players in the home loan business have already committed to support the program.
If your loan is being serviced by one of these major financial institutions you may find that the program is, in fact, 
having an impact on the short sale market.
The major players include:
Bank of America
CitiBank
GMAC Financial Services
Wachovia
Wells Fargo
If you are having trouble keeping up with your mortgage payments and have a legitimate financial hardship, the HAFA program just may help!
If your loan servicer is not one of the major players listed above, you can go the government web site, enter your servicer’s name and find out if they are or are not participating.
That link is: http://www.MakingHomeAffordable.gov/contact_servicer.html
Remember that at this writing, loans guaranteed by Fannie Mae and Freddie Mac do not fall into the HAFA program guidelines. That may soon change, or those institutions may adapt a similar program.
We can tell you from first hand experience that loan servicers are reacting much more quickly than they have in the past and they are asking distressed home owners to complete HAFA forms as part of the short sale process, even if the short sale started before the HAFA program was initiated. To date, all indications are positive for the HAFA program.
9 DEADLY MISTAKES HOME SELLERS MAKE – #2
9 Deadly Mistakes Home Sellers Make
Selling the most expensive asset that most families own is serious business, not something to be taken lightly. It can be a highly stressful process and costly mistakes are easy to make. In order to net the most from the sale it takes careful planning and some work on the seller’s part.
Based on our years of first-hand experience, we have compiled a list of the 9 Deadly Mistakes Home Sellers Make to help home sellers avoid them. As the old proverb says, “forewarned is forearmed.”
A copy of the list is available at no charge to anyone who requests one by e-mail.
Mistake #2 Complacent Marketing When Selling A Home
When selling your home there are no guarantees that the ultimate buyer of your home will simply walk through the front door. In almost every case you will have to bring your home to the attention of that buyer. Effective marketing will help ensure that your property receives maximum exposure to attract that ready, willing and able buyer in the shortest period of time.
Ask your Realtor to list for you all of the ways he/she intends to market your home and provide a time line. Specifically ask what their plans are to market you home on the Internet.
Ensure that the best quality and most flattering photographs are used in all marketing materials. Ascertain the frequency of updates on property search sites that require updating. (Some sites provide exposure for only one week before the posting expires. You’re your Realtor ensure that the posting is renewed every week?)
Some Realtors market their listings on single property web sites with the property address as the URL (http://www.123Main Street.com). These sites track the number of property views your site gets. Ask to the results.
Some Realtors provide business cards with a property photo and web site address on the back to the Realtor’s card. 
Sellers can hand those out to people they meet that may have an interest in viewing or even purchasing the property.
When it comes to providing exposure you need all hands on deck to maximize the effort. Don’t be complacent and let an opportunity escape.
For a free copy of the complete report simply send an e-mail request to: Mike@SellYourVilla.com
9 DEADLY MISTAKES HOME SELLERS MAKE–#1
9 Deadly Mistakes Home Sellers Make
Selling the most expensive asset that most families own is serious business, not something to be taken lightly. It can be a highly stressful process and costly mistakes are easy to make. In order to net the most from the sale it takes careful planning and some work on the seller’s part.
Based on our years of first-hand experience, we have compiled a list of the 9 Deadly Mistakes Home Sellers Make to help home sellers avoid them. As the old proverb says, “forewarned is forearmed.”
A copy of the list is available at no charge to anyone who requests one by e-mail.
Mistake #1—Using a real estate agent instead of a Realtor
When you are looking for help buying or selling property it is important to remember that the terms “real estate 
agent” and “Realtor” are not synonymous. A “real estate agent” is someone who has passed the state real estate salesperson test. They hold state license and can legally assist clients with the sale of real estate. A Realtor is someone who has also passed the state test and holds a state license. However, they are also members of the National and California Association of Realtors as well as their local county Association of Realtors. These are non-profit trade associations that promote real estate information, education and professional standards. The National Association of Realtors has earned a strong reputation for actively championing private property rights and working to make home ownership affordable and accessible. The NAR and CAR members adhere to a strict code of ethics founded on the principle of providing fair and honest service to all clients. Realtor business practices are monitored at the local board levels. Arbitration and disciplinary systems are in place to address complaints from the public and other board members. This local monitoring keeps Realtors directly accountable to the individual clients they serve and therefore, the client is more likely to find better service and accountability by using a Realtor. Realtors feel strongly about their profession and incur considerable costs each year maintaining a system that provides the best service and protection available to their clients.
So, if you are thinking about buying or selling property and were thinking about having a coworker who, happens to have a real estate license, help you; think carefully before you take that route. Ask yourself, “How can someone who works a 9 – 5 job doing something else represent me as effectively as would a full-time professional Realtor?” The mistakes cost YOU, not them.
Call a Realltor today! (916) 337-0658
REO (BANK OWNED) REAL ESTATE SALES DATA FOR EL DORADO HILLS, CA -APRIL 2010
El Dorado Hills, CA REO (BANK OWNED) SALES DATA FOR April 2010
This is a continuation of my nearly three year monthly report on Bank Owned home sales data for El Dorado Hills, CA. This report covers Bank Owned homes sold in April 2010.
There were 21 Bank Owned homes sold in April, three times the number sold the previous month. This depleted the available inventory which presently stands at 1.5 months. The inventory of all available homes in El Dorado Hills is presently 5.6 months. Six months is considered a neutral market, so we are still in a seller’s market irrespective of what the media reports..
The average days-on-market jumped up to 57. It had been 18 in March. Three REO homes that sold had been on the market for over 100 days and one had been on the market for 287 days. A full 48% of the REO homes sold were on the market less than two weeks. The well priced homes are selling quickly as usual. Those that were not well priced took longer to sell—Real estate 101.
The 21 REO homes that sold represent 33% of all homes sold in El Dorado Hills, within the normal range. 
The cost per square foot of REO homes in April was $ 155, down $2 from March. The cost per square foot of all homes sold in January also decreased $ 2 from $169 in March.
The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO homes represented a 7% savings for REO buyers, exactly the same as in the previous month.
The overall sales price for REO homes was 101.6% of the final asking price, and 97.2% of the original asking price, and 48% of the buyers paid more than the asking price for REO homes in April.
The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all home sold: in March, $ 7 per square foot. That is a $ 17,500 savings on a 2500 square foot home, not a small sum.
The data follows:
