This message taken from an email sent out by the California Association of Realtors and sent to all members:
This morning President Bush signed the "Housing and Economic
Recovery Act of 2008." For the past several years, C.A.R. and
the NATIONAL ASSOCIATION OF REALTORS� have aggressively lobbied
for Congress to pass numerous provisions found in this historic
bill. Many of you participated in these efforts by communicating
with your Members of Congress.
Thank you to all of you who responded to these Calls-for-Action.
Your efforts have made a difference. This federal housing bill
is a significant move in the right direction for California
homeowners. It will aid in stabilizing our economy and help stem
foreclosures, while also providing support to first-time
homeowners.
The legislation will assist an estimated 400,000 homeowners
facing foreclosure, many of whom reside in California, by
allowing them to refinance their current mortgages with a
Federal Housing Administration (FHA)-backed loan. The bill also
will permanently increase FHA, Fannie Mae, and Freddie Mac loan
limits in high-cost areas.
The bill permanently increases the conforming loan limit to
$625,500. C.A.R. has long advocated for higher conforming loan
limits. In February, the Economic Stimulus Act of 2008 was
signed, temporarily raising the conforming loan limit in
high-cost areas to $729,750 from $417,000 until December 31,
2008.
Although we would have liked Congress to make permanent the
current $729,750 loan limit, C.A.R. is pleased with the new
permanent loan limit of $625,500. It will allow California
homeowners to refinance their loans into safe affordable loan
products and allow first-time home buyers to enter the market.
The new loan limits for Fannie Mae and Freddie Mac are the
greater of either $417,000 or 115 percent of an area�s median
home price, up to $625,500. The new FHA loan limit will be the
greater of $271,050 or 115 percent of an area�s median home
price, up to $625,500. Both new loan limits will be effective
at the expiration of the economic stimulus limits on December
31, 2008.
C.A.R. also supports the following bill provisions:
A temporary increase in mortgage revenue bonds to refinance
subprime mortgages.
New regulator for Government Sponsored Enterprises to restore
investor confidence in GSE loans and help the market and economy
stabilize.
First-time home buyer tax credit, which allows first-time home
buyers to receive a tax refund worth up to 10 percent of a
home�s purchase price, up to a maximum of $7,500. The refund
serves as an interest-free loan and the homeowner is required to
repay it in equal installments over 15 years.
Temporary raise in the loan limit for the Veterans Affairs home
loan guarantee program to the same level as the economic
stimulus limits until the end of 2008.
Adjustment to the Foreign Investment in Real Property Tax Act of
1980 (FIRPTA), allowing sellers to provide the non-foreign
affidavit to a qualified closing entity and not just the buyer.
The setting of minimum requirements for mortgage originators,
which mandates fingerprinting of loan originators and
establishes a nationwide loan originator licensing and
registration system. The requirements do not apply to those only
performing real estate brokerage activities unless they are
compensated by a lender, mortgage broker, or other loan
originator. States will have the ability to implement more
stringent laws.
The creation of a National Affordable Housing Trust Fund to help
cover the cost of the FHA rescue plan for the first five years
and develop affordable housing in subsequent years.
Other provisions in the legislation:
The Treasury Department�s proposal to create a federal backstop
program to insure the financial well-being of Fannie Mae and
Freddie Mac.
The FHA�s inability to insure loans that utilize a seller-funded
down-payment assistance program. Down-payment assistance from
family, employers and other nonprofits is still allowed.
The Community Development Block Grant Programs� $4 billion
allotment for communities to purchase and refurbish foreclosed
homes.
What do you think about this bill? Send me comments to be posted at a later time!
Stacy.dover1@era.com
Anyone you know sitting on the fence waiting for the right time to buy - tell them this IS THE TIME TO BUY!!!!!!!!!!!
- Stacy
Wednesday, July 30, 2008
Thursday, July 24, 2008
THIS JUST IN!!!! NEW HOUSING BILL SIGNED OFF!
This just in from the California Association of REALTORS (R)
PRESIDENT BUSH DROPS OPPOSITION TO HOUSING BILL EXPECTED FOR A FULL VOTE TODAY!!!!!!!!!!
The White House today said President Bush has dropped his opposition to a sweeping housing bill aimed at shoring up the nation's troubled mortgage companies and assisting homeowners facing foreclosure.The measure, which includes a federal assistance plan for the ailing mortgage giants Fannie Mae and Freddie Mac, also calls for $3.9 billion to pay for grants to help local governments purchase and refurbish foreclosed properties, the component of the measure Bush opposed. Foreclosed properties are becoming a significant financial drain on local municipalities, driving down home values in nearby neighborhoods, creating blight, and impacting the cities' property tax reservoirs.The measure also would permanently increase the cap on mortgage loans guaranteed by Fannie and Freddie to a maximum of $625,000 from $417,000.
More Good News!
LeadingRE Housing Beat: Sluggish but We See Light at the End of the Tunnel
CHICAGO (7/16/08) – A survey of Leading Real Estate Companies of the World® brokers in early July indicates some easing of adverse conditions in the housing market, with 59% of respondents from throughout the country indicating that they are seeing a stronger market in the last 60 days, even after factoring in normal seasonal changes.
Overabundant supply has been one of the hurdles in the market, and nearly 20% of brokers are seeing a decline in inventory from a year ago, which has not been the case in the last several months. While the vast majority (82%) indicates that prices are down in the past year, 75% of those indicated that the decline was less than 10%, and 33% indicated a decline of under 5%.
Interestingly, with all of the focus on foreclosures, only a third said that such properties have had a significant impact on prices in their area, which is consistent with the fact that the majority of foreclosures are occurring in about eight states.
Experiences were mixed in terms of which market segments were the slowest in this environment, with 31% indicating the mid-range “move-up” market, 55% pointing to the high-end market, and 13% saying that the first-time buyer market is the most sluggish.
Respondents were from all areas of the country: Southeast 38%; Northeast 29%; Midwest 17%; Southwest 14%; and Western states 6%.
The Leading Real Estate Companies of the World® (LeadingRE) network is comprised of nearly 700 of the top locally-branded companies in the country, with 5,500 offices and annual homes sales of $370 billion in 2007, more than any national franchise brand. The organization also has members in 38 countries abroad.
“We believe our affiliates represent a good cross-section of the U.S. brokerage community because many of these firms are the market leaders in their areas and encompass a large number of transactions. The findings from this month’s ‘Housing Beat’ survey mirror what others in the industry are reporting – that we are not out of the woods yet, but that inventory is beginning to be absorbed, financing difficulties have eased, sellers are more realistic about pricing and buyers are growing impatient with waiting to purchase their next home.”
As always - please feel free to call or email me anytime with any questions you have!
Happy House Hunting!
Stacy
PRESIDENT BUSH DROPS OPPOSITION TO HOUSING BILL EXPECTED FOR A FULL VOTE TODAY!!!!!!!!!!
The White House today said President Bush has dropped his opposition to a sweeping housing bill aimed at shoring up the nation's troubled mortgage companies and assisting homeowners facing foreclosure.The measure, which includes a federal assistance plan for the ailing mortgage giants Fannie Mae and Freddie Mac, also calls for $3.9 billion to pay for grants to help local governments purchase and refurbish foreclosed properties, the component of the measure Bush opposed. Foreclosed properties are becoming a significant financial drain on local municipalities, driving down home values in nearby neighborhoods, creating blight, and impacting the cities' property tax reservoirs.The measure also would permanently increase the cap on mortgage loans guaranteed by Fannie and Freddie to a maximum of $625,000 from $417,000.
More Good News!
LeadingRE Housing Beat: Sluggish but We See Light at the End of the Tunnel
CHICAGO (7/16/08) – A survey of Leading Real Estate Companies of the World® brokers in early July indicates some easing of adverse conditions in the housing market, with 59% of respondents from throughout the country indicating that they are seeing a stronger market in the last 60 days, even after factoring in normal seasonal changes.
Overabundant supply has been one of the hurdles in the market, and nearly 20% of brokers are seeing a decline in inventory from a year ago, which has not been the case in the last several months. While the vast majority (82%) indicates that prices are down in the past year, 75% of those indicated that the decline was less than 10%, and 33% indicated a decline of under 5%.
Interestingly, with all of the focus on foreclosures, only a third said that such properties have had a significant impact on prices in their area, which is consistent with the fact that the majority of foreclosures are occurring in about eight states.
Experiences were mixed in terms of which market segments were the slowest in this environment, with 31% indicating the mid-range “move-up” market, 55% pointing to the high-end market, and 13% saying that the first-time buyer market is the most sluggish.
Respondents were from all areas of the country: Southeast 38%; Northeast 29%; Midwest 17%; Southwest 14%; and Western states 6%.
The Leading Real Estate Companies of the World® (LeadingRE) network is comprised of nearly 700 of the top locally-branded companies in the country, with 5,500 offices and annual homes sales of $370 billion in 2007, more than any national franchise brand. The organization also has members in 38 countries abroad.
“We believe our affiliates represent a good cross-section of the U.S. brokerage community because many of these firms are the market leaders in their areas and encompass a large number of transactions. The findings from this month’s ‘Housing Beat’ survey mirror what others in the industry are reporting – that we are not out of the woods yet, but that inventory is beginning to be absorbed, financing difficulties have eased, sellers are more realistic about pricing and buyers are growing impatient with waiting to purchase their next home.”
As always - please feel free to call or email me anytime with any questions you have!
Happy House Hunting!
Stacy
Monday, July 21, 2008
Summertime is in Full Swing! What Have You Done for FUN?
Summer's here and the weather has been wonderful these past few days in southern California! It is a wonderful time to look around and see what we all around us and be very thankful! We have had a very warm summer, but the past few days have been pleasant! Glendora has kicked off summer in the usual events -- all which are fun and "free" for everyone! If you have not left town --remember the city of Glendora offers free movies in the park at dusk on Wednesdays through July . Thursday's we have our Farmer's Market just south of Foothill Blvd. on Glendora Avenue. There are also concerts in the park every Sunday evening. There are also plenty of church camps and community services classes and camps to keep everyone busy! It seems we are as busy now as we were during the school year!
This past Sunday I held an open house at my listing in La Verne and the mild weather -- 89 degrees -- with a mild breeze -- brought out a lot of buyers. If you are looking to buy - and wondering when the right time is -- I believe it is now. Prices are still low and FHA financing is back. This is allowing more people to apply for and receive wonderful fixed rate loans.
There is a new book out called "Confessions of a Sub prime Lender" by Richard Bitner which details, in part, what happened the last few years in the mortgage lending industry. The author states the system failed in many levels, and in his opinion, Wall Street called many of the shots regarding mortgage lending guidelines. While I have not read the book, I am sure it is just the first of many to hit the bookstores in the next few years. Even as we think about what happened, and we all probably know someone negatively affected by the sub prime market, it is important to remember it was really a small percent of the population affected by these loans. I can confidently say as a full-time REALTOR (R) that plenty of well-qualified people are getting into the market now and getting wonderful deals.
As you enjoy your summer, I invite you to explore the possibility of owning your first home. If you own a home, summer is a wonderful time to enjoy your very own place in this world!
Here's to happy memories -- and new ones in the making!
Stacy
This past Sunday I held an open house at my listing in La Verne and the mild weather -- 89 degrees -- with a mild breeze -- brought out a lot of buyers. If you are looking to buy - and wondering when the right time is -- I believe it is now. Prices are still low and FHA financing is back. This is allowing more people to apply for and receive wonderful fixed rate loans.
There is a new book out called "Confessions of a Sub prime Lender" by Richard Bitner which details, in part, what happened the last few years in the mortgage lending industry. The author states the system failed in many levels, and in his opinion, Wall Street called many of the shots regarding mortgage lending guidelines. While I have not read the book, I am sure it is just the first of many to hit the bookstores in the next few years. Even as we think about what happened, and we all probably know someone negatively affected by the sub prime market, it is important to remember it was really a small percent of the population affected by these loans. I can confidently say as a full-time REALTOR (R) that plenty of well-qualified people are getting into the market now and getting wonderful deals.
As you enjoy your summer, I invite you to explore the possibility of owning your first home. If you own a home, summer is a wonderful time to enjoy your very own place in this world!
Here's to happy memories -- and new ones in the making!
Stacy
Friday, July 11, 2008
This just in from the California Association of REALTORS(R)
FORECLOSURE RELIEF BILL BECOMES LAWThis week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California. The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default. It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply. These requirements will remain in effect until January 1, 2013. The full text of Senate Bill 1137 (Perata) is available at www.leginfo.ca.gov.
- Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender's declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a simila r declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant's right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.
As always, if you have any questions about this or other Real Estate related issues, please contact me!
stacy.dover1@era.com 626-429-7361
Best,
Stacy
- Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender's declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a simila r declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant's right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.
As always, if you have any questions about this or other Real Estate related issues, please contact me!
stacy.dover1@era.com 626-429-7361
Best,
Stacy
Thursday, July 10, 2008
The Latest...
Have you ever felt like times change in the blink of an eye? There are times that change is great and times it doesn't seem quick enough! I am really excited because the latest stories in the paper and also word-of-mouth from those who know in the real estate and mortgage industries is . . . The market is changing! Are we still spiralling downward? No! If there was a pulse we could feel, it would be speeding up. A year ago, we were on the cusp of the decline in real estate tranactions . . . we all sat and speculated. Now, we are faced with a market that is so full of inventory it is literally bloated with GREAT buys! And guess what? People are taking notice!
When was the last time you have heard about multiple offers and bidding wars on a property? You may think that was years ago, in the boom times. Guess what? It is happening again! Now, I will cautiously say this is not like the boom times with inflated values and loans - there is much prudence on the part of the banks, and also with regard to the buyers.
The market is changing, though...All the people priced out previously who waited patiently until a time when prices were reasonable, their money was saved and they could get a great loan rate are waking up and realizing that the time is now! There are properties priced so low they are sparking bidding wars (Yes, in Glendora, nonetheless). Look around and you will start to notice that the house up the street priced way below market value is selling - and it is selling for more than the asking price.
The real estate market has its share of ups and downs; the change is always inevitable. It has not been change in the blinks of an eye, rather like change as one wakes up from a long slumber.
As the rest of America forces open their eyes, blinks and adjusts their focus, you may realize the time to act is now!
As always I am here to answer any questions you have about real estate! Please call or email me and I will promise you service you can TRUST!
Happy shopping!
Stacy
When was the last time you have heard about multiple offers and bidding wars on a property? You may think that was years ago, in the boom times. Guess what? It is happening again! Now, I will cautiously say this is not like the boom times with inflated values and loans - there is much prudence on the part of the banks, and also with regard to the buyers.
The market is changing, though...All the people priced out previously who waited patiently until a time when prices were reasonable, their money was saved and they could get a great loan rate are waking up and realizing that the time is now! There are properties priced so low they are sparking bidding wars (Yes, in Glendora, nonetheless). Look around and you will start to notice that the house up the street priced way below market value is selling - and it is selling for more than the asking price.
The real estate market has its share of ups and downs; the change is always inevitable. It has not been change in the blinks of an eye, rather like change as one wakes up from a long slumber.
As the rest of America forces open their eyes, blinks and adjusts their focus, you may realize the time to act is now!
As always I am here to answer any questions you have about real estate! Please call or email me and I will promise you service you can TRUST!
Happy shopping!
Stacy
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