Congress and the Mortgage Industry

      Top economic minds have been clamoring for federal action to help out the estimated 2 million people who are in danger of losing their homes.  It may take more dire circumstances to push Congress ,and President Bush to do something.  Why aren’t the candidates running for the Presidency in 2008 making more of an issue out of this?     President Bush has suggested that borrowers could refinance their mortgages with fixed rate loans under a cautious remedy proposed by Bush.  This will only apply to the 80,000 who have 3% equity in their home and can prove their original loan was being repaid until it was reset.     Congress is divided on measures that would ease mortgage problems. Proposals include federally chartered mortgage companies to help refinance delinquent mortgages held by the kind of people that Bush’s plan won’t cover.     Later this month the Federal Reserve could cut interest rates, which would lower monthly payments for those struggling to pay their adjustable rate mortgages.  The Fed has issued guidelines urging loan service companies to work with borrowers who are in danger of default.     Banks could renegotiate loans.  The problem with that is that banks often sell their home loans to investors, so the original lender no longer has a stake in the credit.     The bottom line is that if the Fed doesn’t lower interest rates, more needs to be done.*  The mortgage industry can’t rely on the President and Congress to come to any kind of agreement. And, if that ever happened , how long before that could be implemented?     The American economy, since 1995, has been driven by the housing market.  Now, more than ever, we need some leadership from within the Mortgage Industy and Congress.  Stay tuned, this story seems to rewrite itself every day.*Yesterday discussions began regarding Fannie Mae and Freddie Back freezing some forthcoming rate increases for some adjustable loans that are set to reset.  This was seen as a positive beginning but right now we’re only in the theorhetical stages, so stayed tuned to see what happens.

Win $2,100,000 “Dream Home” in Marin County, California!

                                                      

if(requestedWidth > 0){ document.getElementById(‘articleViewerGroup’).style.width = requestedWidth + “px”; document.getElementById(‘articleViewerGroup’).style.margin = “0px 0px 10px 10px”; }  A San Rafael-based nonprofit is hoping to fund its programs for the poor by offering raffle ticket buyers the chance to win a San Rafael “dream home” priced at $2.1 million.    Community Action Marin – which operates 15 programs that focus on mental health services, early childhood development, HIV/AIDS, food programs, the homeless and more – will sponsor three drawings over the next five months. In addition to the house, which is the grand prize, Community Action Marin will give away 349 smaller cash prices, ranging from $300 to $25,000.    ”The fact that the local anti-poverty agency is raffling off a $2.1 million house is a little ironic,” said Gail Theller, the agency’s exective director.    But recent cuts in funding by the Marin Community Foundation, the federal government and the state government left Community Action Marin with little choice, Theller said.    The nonprofit lost about $200,000 a year in funding from the Marin Community Foundation recently when the foundation’s trustees decided to take money away from ongoing programs so they could finance new initiatives. In addition, Gov. Arnold Schwarzenegger eliminated funding for a homeless program that served the mentally ill when he sliced $703 million in health spending from the new budget. That move cut $500,000 a year from Community Action Marin’s budget, Theller said.    Stacy Swor, a Mill Valley lawyer who has been on the agency’s board for 18 years, said, “The truth of the matter is we’re being bled to death. Believe me, we’ve tried everything. Bake sales and car washes just don’t do it these days.    ”People are willing to support a charity if they can see something for their money,” Swor said. “What we’re faced with is ongoing operational expenses, and those are expenses that are just about to get contributions for.”   Although this is the first time that a nonprofit in Northern California has used such a raffle to generate revenue, the practice has gained popularity in Southern California, where it has been used by St. Jude Medical Center, school districts and cultural organizations, Theller said. A law passed by the California Legislature in 2001 made it legal for nonprofits to conduct such raffles.    Still, the agency took no chances, Theller said. It checked with the state attorney general’s office and the Marin County district attorney before proceeding with the raffle.    Community Action Marin has hired Neal Martin, a former high school school teacher who oversaw a similar raffle for a college prepatory school in Watsonville, to manage the raffle. Mount Madonna School sold 19,000 raffle tickets costing $150 each and raised about $1 million for the school while paying out a grand prize of about $1 million, Martin said. Community Action Marin expects to do better than that.    ”We are convinced we are going to net $2.2 million,” Theller said.   Because Community Action Marin is also charging $150 per raffle ticket, it needs to sell 35,000 tickets to meet that goal. The prizes will be paid for with proceeds from ticket sales. If fewer tickets are sold than expected, Community Action Marin has reserved the right to reduce the size of the grand prize – to an even split of the raffle’s total profits. The grand prize winner also has the option of a $1.7 million cash prize in lieu of the “dream house.”    Theller said she found the house at 204 Southern Heights Blvd. in San Rafael by mailing letters to 100 people who were trying to sell homes in Marin. If the grand prize winner does opt for the cash, the owner of the house will be paid for holding the house out of the market for six months, Theller said. She declined to say how much.    Theller said she thought it would be difficult finding a homeowner willing to take their house off the market for so long, but half of the people contacted expressed interest. The owner of the San Rafael house had priced the home at $2.1 million, and will be paid that amount if the prize winner chooses the house.    People who buy the raffle tickets will know that they’re giving to a worthy cause, Martin said.    ”It’s not a mystery – unlike the state lottery where the funds from the state lottery are going to end up being budgeted in the next fiscal year,” Martin said.    Nevertheless, raffle winners will get no special treatment from the Internal Revenue Service. Like any raffle or lottery, prizes over $5,000 are subject to a 25 percent government tax, Martin said.(This article was written by Richard Halstead and was posted on the Marin Independent Journals web site: 9/6/2007)COMMUNITY ACTION MARIN’S ‘DREAM HOME’ RAFFLE ADDRESS: 204 Southern Heights Blvd., San RafaelSIZE: 4,400 square feet, 4 bedrooms, 4.5 bathrooms; quarter-acre lotDESCRIPTION: Bay views, chef’s kitchen, lush landscaping, library suite, all-new appliances, infinity pool, gated entryCOST OF RAFFLE TICKET: $150HOW TO ENTER: By phone, 800-431-5166; by mail, CAM Dream House Raffle, 29 Mary St., San Rafael, CA 91949; or by fax at 415-738-7664.                                                    GRAND-PRIZE DRAWING: Feb. 9, 2008

 

Mortgage Trends in Marin County

     As simply as possible…     Due to the price of real estate in Marin County the “Jumbo Loan” is the primary loan that is used. The guidelines offered here are in a state of flux due to the changing mortgage environment.  Due to the mortgage liquidity crisis, and the record number of defaults, the requirements or guidelines have become more stringent during the last couple of months.     A “Jumbo Loan” is any loan amount in excess of $417,000 and is also refered to as a “non-conforming loan.”   Conforming loans are any loan up to $417,000.  There are rumors that Fannie Mae will soon be increasing those limits in California     First time buyers will need at least 10% to put down, and have a minimum FICO score of 680.  There are other programs for buyers that are available.  Here’s a quick overview:Loan: $750,000       5% down      FICO Minimum: 660      3 months of reservesLoan: $1,000,000   10%down      FICO Minimum: 660      3 months of reservesLoan: $2,000,000   20%down      FICO Minimum: 700      3 months of reservesLoan: $3,000,000   20%down      FICO Minimum: 680     12months of reservesLoan: $5,000,000   30%down      FICO Minimum: 700     18months of reserves     As mentioned above, these guidelines are in a state of flux, and could change at any time.     Now, more than ever, a buyer needs a loan agent/mortgage broker that is experienced and knowledgeable. I recommend working with a local professional to assist you.  I’ve heard stories from various mortgage professionals about multiple offers (yes, they still happen) in Marin County and San Francisco, where the buyer made an offer with a Pre-Approval letter from an online lender, and those offers weren’t even considered in the process.     When you make an offer in today’s market, and the listing agent for the seller cannot directly call that lender if they have any questions (whatever time it may be/day or night), you are at a distinct disadvantage.      Any questions?Some of the information for this post was provided by:Dominic Pomilia      Manager, First Security Loan in Mill Valley      415-381-7015Anthony Dailley      Indy Mac Bank, Retail Lending Division          415-706-1495

Buying in Today’s Real Estate Market

 In today’s real estate market, with all the recent changes in the Mortgage Industry, prospective buyers should:1. Get prequalified by a Mortgage Brokers or Lender.  If you did this prior to August 2007, you’ll need to get prequalified again.  Take the time to talk to a Mortgage Broker or Lender.  Their specific questions in regard to income, debt, ect. will help you determine the price range you can afford.  It is a very important step on the path to home ownership.2. Have the home your considering purchasing inspected by reputable home inspector.  Qualified home inspectors will detect issues that many buyers can overlook.  There are many different kinds of inspections you will want to consider.  Some of the basic inspections people typically order are: 1.Contractors Inspection 2.Pest Control Inspection 3.Engineer Inspection and 4.Roof Inspection. If possible, attending these inspection can prove to be a very valuable experience.3. Be careful not to limit your search for properties to open houses, ads, or the internet.  Oftentime, homes that you’ll find in a real estate magazine or on the internet (if they are priced properly) have already been sold.  Your best course of action is to contact a reputable realtor that can work in tandem with your parameters for finding a home.  As a Realtor, I have up to date information that isn’t always available to the general public including pocket listings that myself or other associates might have or be aware of.  “Pocket Listings” are homes that are not on the Multiple Listing Service.   Sellers that do not want to formely list their home for sale, but are willing to sell their home, will use this methodology sometimes.4. Choose a Realtor that is commited to forming a strong business relationship with you.  Making a connection with the right Realtor is crucial.  Choose a professional who is dedicated to serving your needs – before, during, and after the sale!5. Buying a home is a process of elimination, not selection.  New properties come on the market every day so be open to all possibilities.  When you think you’ve found the home you want have your Realtor prepare a comparative market analysis for you.  This compares similar homes that have recently sold, or are still for sale.6. Consider your long term needs.  It’s important to think ahead.  Will the home your considering buying fit your needs in 3 to 5 years?7. Purchase adequate Homeowner’s Insurance.  Advice from an insurance agent can provide you with answers to any concerns you may have.8. Purchase a Home Protection Plan.  This is not related to your homeowner’s insurance but is essentially a mini insurance policy that usually last one year from close of escrow.  It usually covers basic repairs you may encounter and can be purchased for a nominal fee.  Talk to your Realtor to help you find the Home Protection Plan you need.9. Know the total costs involved!  Early in the buying process you should talk to your lender (and Title Company officer/representative as soon as you open Escrow)  for an estimate of closing costs.  Title Company and any attorney fees should be considered.  Prepaying through the Escrow process Homeowner’s Association Fees and Home Insurance must be taken into account. Also, remember to examine your closing or settlement statement prior to closing.10. Due Diligence: Buyers should make a list of any concerns they have relating to issues such as crime rates, schools, power lines, neighbors, environmental conditions ect.  Ask the questions before making an offer on a home.  Be diligent, so that you can have confidence in your purchase.

Selling in Today’s Real Estate Market

 When I represent Sellers my goal is not to simply sell their house, but to help them realize the best possible price obtainable for their property, with the best terms and conditions, in the shortest period of time.  To help achieve this goal I provide proven marketing techniques on how to prepare your home for sale.  These suggestions require a minimum amount of time and expense to complete and are designed to make your house stand out from the competition.     Did you know that within 15 seconds a buyer has developed an opinion of your property? This is why establishing the right first impression is critical to achieving a successful sale.  The following is an outline of those elements which will create the overall first impressions, including suggestions on how to make sure the buyer reacts as favorably as possible.                                                                                              The best way to make a buyer “feel at home” is to create an enviroment similar to that found in a model home.  Obviously, you cannot recreate the feeling of a perfect display home without starting from scratch, but there are some valuable techniques that can be learned.  When you walk into a model home you will notice several key points:   * The environment is neutral.   * The colors and interior decorating accent the home’s features.   * The smell is new and clean   * The sound is either quiet or enhanced by subtle background music.   * All details are looked after, from manicuring the lawn to a floral arrangement in the entry.      This is the first in a series of Tips for Sellers.  In my next posts I will be offering suggestions to help enhance your homes exterior, interior, and other areas of your property. PART ONE

Tips For Sellers Part Two

INTERIORS: 
  
     Appeal to the senses: There are many ways to create a more exciting and saleable interior, at surprisingly little cost.  I’ll briefly discuss the sensory selling tools that can have an enormous impact, then provide you with some suggestions:
LIGHT:   It is proven that people react more favorably to property shown under bright light than dark.  The following steps should help you keep your room as bright as possible.  Keep windows clean.  Use adequate wattage in light bulbs. Consider replacing old florescent lamps.  Use mirrors to magnify the feeling of light and space.  Use light wall colors.  Open drapes and blinds and turn on lights prior to showing.
COLOR: A fundemental rule when selling your house is to keep colors neutral and light.   Avoid highly patterened wallpaper whenever possible.  Limit bright colors to accents like flowers, towels,area rugs, and shower curtains.
SOUND: The sounds of peace and quiet are some of the best sounds to have when your home is being shown to a prospective buyer.  Other consideratons are: Avoid barking dogs and noisy children, if possible. Avoid sounds like vacumns,dishwashers,and lawn mowers.  Light classical or instrumental music can be effective to creating a pleasing atmosphere.
SMELL: Smell has more impact than you might expect.  The smell of newness is positive. Also, the smell of cleanliness is important to the selling enviroment of your home.  Fresh flowers can be very effective. Smells to avoid are: pet odors,tobacco,cooking,and oil or gas.

PREPARING THE INTERIOR:
ENTRY: The entry is where the first impression of the interior is created.  Here you have the opportunity to make a big statement in a small area.  If need be: Repaint the entry using light, neutral colorss. Tile or linoleum flooring should shine.  Replace plastic switch plate covers with brass or porcelain.  A new hall light fixture can make a big impression.  Make sure area is well lit.

KITCHEN: The kitchen is perhaps the most important room in the house.  Make sure the kitchen is virtually spotless and smells fresh.  Consider replacing outdated light fixtures with new track lighting.  If your appliances are dated by colors like harvest gold or avocado, consider having them professionally refinished in a new color like almond or white.  This will make the appliances look new at a fraction of the cost to replace them.  Spruce up cabinets by installing new knobs or hardware.  Organize cabinets to demonstrate how much room you have.  Remove small kitchen appliances from countertops to create an uncluttered look.  Chipped or damaged countertops should be replaced or repaired.

BATHROOMS:  The bathroom has become an important selling feature in today’s home.  It is a room that has moved from the utilitarian to the exciting.  There are many ways you can improve deficiencies and create interest by: Placing a vase of fresh flowers on the vanity. Install a wall telephone for a high tech look. Replace old toilet seat with a new one. Replace old light fixture with a new style light strip or make up light. Refinish an old porcelain tub using a porcelain finishing service.  Place all personal care articles out of sight.  Freshen air with lemon scented products.  Replace old towel racks with new ones.  Add color and richness with new towels and shower curtain.

LIVING ROOM: Use mirrors whenever possible to enhance the perception of size. Show fireplace off to its best advantage.  Sweep clean and make sure screen is in good condition.  Remember buyers look for “impressive living rooms!”

BEDROOMS: The bedrooms can do as much to sell your house as they can to turn off a buyer. Make sure the bedrooms are spotless.  Organize closets to increase their perceived size.  Bedrooms should be well lit.

THE END RESULT:  By showing attention to detail and understanding the buyer’s need to visualize your house against a neutral backdrop, you can dramatically increase the saleability of your property.   And, I will be very happy to assist you with recommendations to help your house sell for the highest price, with the best terms and conditions, in the shortest time possible.

Tips For Sellers Part Three

INTERIORS: 
  
     Appeal to the senses: There are many ways to create a more exciting and saleable interior, at surprisingly little cost.  I’ll briefly discuss the sensory selling tools that can have an enormous impact, then provide you with some suggestions:
LIGHT:   It is proven that people react more favorably to property shown under bright light than dark.  The following steps should help you keep your room as bright as possible.  Keep windows clean.  Use adequate wattage in light bulbs. Consider replacing old florescent lamps.  Use mirrors to magnify the feeling of light and space.  Use light wall colors.  Open drapes and blinds and turn on lights prior to showing.
COLOR: A fundemental rule when selling your house is to keep colors neutral and light.   Avoid highly patterened wallpaper whenever possible.  Limit bright colors to accents like flowers, towels,area rugs, and shower curtains.
SOUND: The sounds of peace and quiet are some of the best sounds to have when your home is being shown to a prospective buyer.  Other consideratons are: Avoid barking dogs and noisy children, if possible. Avoid sounds like vacumns,dishwashers,and lawn mowers.  Light classical or instrumental music can be effective to creating a pleasing atmosphere.
SMELL: Smell has more impact than you might expect.  The smell of newness is positive. Also, the smell of cleanliness is important to the selling enviroment of your home.  Fresh flowers can be very effective. Smells to avoid are: pet odors,tobacco,cooking,and oil or gas.

PREPARING THE INTERIOR:
ENTRY: The entry is where the first impression of the interior is created.  Here you have the opportunity to make a big statement in a small area.  If need be: Repaint the entry using light, neutral colorss. Tile or linoleum flooring should shine.  Replace plastic switch plate covers with brass or porcelain.  A new hall light fixture can make a big impression.  Make sure area is well lit.

KITCHEN: The kitchen is perhaps the most important room in the house.  Make sure the kitchen is virtually spotless and smells fresh.  Consider replacing outdated light fixtures with new track lighting.  If your appliances are dated by colors like harvest gold or avocado, consider having them professionally refinished in a new color like almond or white.  This will make the appliances look new at a fraction of the cost to replace them.  Spruce up cabinets by installing new knobs or hardware.  Organize cabinets to demonstrate how much room you have.  Remove small kitchen appliances from countertops to create an uncluttered look.  Chipped or damaged countertops should be replaced or repaired.

BATHROOMS:  The bathroom has become an important selling feature in today’s home.  It is a room that has moved from the utilitarian to the exciting.  There are many ways you can improve deficiencies and create interest by: Placing a vase of fresh flowers on the vanity. Install a wall telephone for a high tech look. Replace old toilet seat with a new one. Replace old light fixture with a new style light strip or make up light. Refinish an old porcelain tub using a porcelain finishing service.  Place all personal care articles out of sight.  Freshen air with lemon scented products.  Replace old towel racks with new ones.  Add color and richness with new towels and shower curtain.

LIVING ROOM: Use mirrors whenever possible to enhance the perception of size. Show fireplace off to its best advantage.  Sweep clean and make sure screen is in good condition.  Remember buyers look for “impressive living rooms!”

BEDROOMS: The bedrooms can do as much to sell your house as they can to turn off a buyer. Make sure the bedrooms are spotless.  Organize closets to increase their perceived size.  Bedrooms should be well lit.

THE END RESULT:  By showing attention to detail and understanding the buyer’s need to visualize your house against a neutral backdrop, you can dramatically increase the saleability of your property.   And, I will be very happy to assist you with recommendations to help your house sell for the highest price, with the best terms and conditions, in the shortest time possible.