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SHORT SALE : Be Aware

Home Owner's and specifically those considering short sales, please be aware that some banks and their contracts to allow an SS, are requesting that you also sign a promissory note. What this means is although the SS is approved of, the amount of debt owed upon the original mortgage is not 100% written off and eaten by the lender/bank. Having signed a promissory note, they are saying that you still owe whichever amount is stated. Remember, there is no easy way out. By now you should have heard how tedious the SS process can be, so working with the right people is critical in part of a smooth transaction. You can almost be certain of such a request by the bank if they see the following:
- good credit / FICO score (700+)
- still making payments on automobiles / credit cards
- income / deposits are consistant and of sufficient amount.

2009 Lowering Your Property Taxes ( links to instructions )

Northern California County / City Transfer Tax rates (chart)

The different transfer taxes you need to pay when property is exchanged usually per $1,000 of the purchase price. View/Download chart here. PDF.

*FHA Loans 2009 in detail.

Differences in property / appraisal requirements between FHA and conventional loans.
Details here PDF. format

Jan. 09 Green Home Features Grow in Demand

Today's home buyers are asking for more green features as a means of lowering costs, becoming more environmentally friendly, and adopting a healthier lifestyle.

"Green features are becoming one of the top three priorities, after price and location," says Joseph Himali, Greater Capital Area Association of REALTORS Board of Directors president.

Green features focus on energy efficiency, water efficiency, resource efficiency, and indoor air quality and include such elements as Energy Star appliances, low-flow shower heads, carpets and paint with low volatile organic compounds, and building materials procured from local suppliers.

The average green buyer will shell out $12,400--on average--for green features, according to the National Association of REALTORS. National Association of Home Builders green-building standards program manager Kevin Morrow expects the market share of green-certified homes to rise to 20 percent in 2010 from about 10 percent in 2009 and 2 percent in 2006.

Tax credits and other financial incentives, coupled with green certifications, makes it easier for buyers, builders, and real estate professionals to go green.

Source: Washington Times, Lisa Rauschart (01/09/09)

Mortgage Rates Continue Falling to Record Lows

For the fourth consecutive week, mortgage rates have fallen to all-time lows. The 30-year mortgage rates averaged 5.01 percent this week, which is a drop from last week's 5.1 percent. Last year at this time, rates averaged 5.87 percent. " Interest rates for 30-year fixed-rate mortgages fell for the 10th week ... due in part to the Federal Reserve's recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae," says Freddie Mac Chief Economist Frank Nothaft.

Other rates also dropped for the week:

Top 10 U.S. Rental Markets

Top 10 U.S. Rental Markets
It will likely be a challenging year for all kinds of commercial real estate, according to the real estate services company and investment firm Grubb & Ellis Co., which released its 2009 forecast Monday.

Office space. The report found that 90 million square feet of office space was under construction at the end of 2008, most of which will be available for use in 2009. This new space combined with a projected 45 million square feet coming available as tenants vacate and a big jump in subleased space, will push vacancy rates up by 2 percentage points to end 2009 at 16.5 percent, the report predicted.

Retail. The retail real estate market will be hard hit by the downturn. Grocery store-anchored centers in mature trade areas will hold their ground in 2009, the report said, while centers on the urban fringe, where housing construction has stalled will suffer.

Industrial. The quest for cost-saving efficiencies should sustain demand for industrial space in 2009, despite the weak economy, according to the report. Nevertheless, the vacancy rate will rise slightly to end 2009 at 9.4 percent.

Apartments. Apartments will have a tough year, even with the addition of renters who have lost their homes to foreclosure, because of the increasing supply of unsold condos and homes now available for rental.

The top-10 rental housing markets from 2009-2013 will be:

The First Time Home Buyer's Credit Back? (up to $7,500) read on...

Taken from Chicago Tribune, Mary Umberger :
First-time homebuyers in 2008 can take an income-tax credit on their purchase, thanks to passage in Congress earlier this year of the first-time home buyer tax credit.

The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.

The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don't qualify.

If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.

The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit

Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven.

[Editor's Note: The credit is set to expire in mid-2009] Here's the general outline of the plan in PDF. format (D/L)

The Real Estate "WEALTH" Debate - article by L. Yun N.A.R

I am recommending a great article on today's home ownership and the future, published by the National Association of Realtor's Lawrence Yun recently. Here is the article in PDF. format (read it!)

Can it be true? Condos in Moraga going for under $300,000? indeed.

I came across about half a dozen listings in the Moraga area of condominiums as big as 1100+ sq ft 2 bedroom 2 bath for under the 300k mark! that is a great location and a great price. Already scheduled for a tour later this week. I will write about my opinions on the properties after viewing them.

New FHA Loan Terms starting 2009. (good read)

FHA is a great way to get a loan especially in today's market, I would suggest you take a moment of your time and schedule to meet with a lender to discuss what you could qualify for today.

-3.5% down payment
-100% of down payment can be via gift from family member
-No income limits
-Seller contributions of up to 6% allowed
-No reserves required on 1 & 2 unit properties
-Upfront mortgage insurance premium can be financed into loan
-Non-occupant co-borrowers allowed
-Lenient on credit and employment history
-Non traditional credit allowed
-Okay 2 years bankruptcy Discharge
-Okay 1 year after Chapter 13 implemented
-"As Is" appraisals allowed for minor property defects
-Terminte inspectsion/clearance not required.

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