Plenty of Foreclosures Cancelled In California

By now most of us have heard about the California law that goes into effect in 2013, banning the dual-tracking by lenders. Which means they couldn't move forward with foreclosure proceedings while a borrower was working on a loan modification or short-sale.

The amount of foreclosures that were cancelled in California bumped up to 62.1 percent from September to October and almost 37% over a one year period.

We don't know what this will do the recovery. Consider that the banks seem to be working harder at getting mods and short-sales done...but, what if they aren't approved, aren't acceptable to the borrowers....does that mean the foreclosure timeline will start all over again and therefor the housing recovery be stalled even further?

I would have to say yes...and then we'd certainly be working with more distressed properties.....still.....

National Association of Realtors Forecast for Housing and the Economy

Great article I read this morning that I wanted to share, word for word, with my blog readers!

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NAR Makes Forecast on Housing, Economy

By: Esther Cho ~ Via DSNews.com11/12/2012

The National Association of Realtors (NAR) offered market projections into 2014 during a forum at the 2012 Realtors Conference and Expo.

NAR chief economist Lawrence Yun says he expects the market share of distressed sales to fall from about 25 percent in 2012 to 8 percent in 2014, according to a release on the forum.

Mark Vitner, managing director and senior economist at Wells Fargo, was one of the speakers at the NAR forum. Vitner compared distressed homes to an after-Christmas sale stating, “most of the best stuff has been picked over, but make no mistake they’ll be with us for a while.”

The housing recovery was expected to continue so long as credit does not further tighten and a fiscal cliff is avoided.

The rise in home prices should also stay. Yun predicted a 6 percent rise in the median existing-home price in 2012, with another 5.1 percent increase next year and comparable gains in 2014.

Existing-home sales were projected to move higher year-after-year: a 9 percent increase this year to 4.64 million, 5.05 million in 2013, and 5.3 million in 2014.

Mortgage interest rates were expected to eventually increase to an average of 4 percent next year, and inflationary pressure should cause rates to go up to 4.6 percent in 2014, the NAR said in the release.

Yun projected a higher Gross Domestic Product (GDP) in the coming years, with GDP expected to be 2.1 percent this year and rise to 2.5 percent in 2013. The unemployment rate should also fall to about 7.6 percent in 2013.

Yun stressed that the “projections assume Congress will largely avoid the ‘fiscal cliff’ scenario.”

“While we’re hopeful that something can be accomplished, the alternative would be a likely recession, so automatic spending cuts and tax increases need to be addressed quickly,” Yun added.

35 Million Committed to Soldiers By Wells Fargo

New hiring, donation of REO properties, and financial education training....to the tune of Thirty-Five Million dollars from Wells Fargo. Nice!

The properties will be given to non-profit organizations that serve the military. Money will be set aside for ways to help soldiers via 'philanthropic endeavors'.

November 14-30, WF customers can donate via their ATM's as well. The donations will end up going to various organizations that assist the military.

Short, sweet, good news!

FHFA's 3rd Winner for REO Bulk Sale

Colony Capital is the big winner in the SW states it would appear. They were able to purchase 970 properties from Southern California, Arizona and Nevada. They are a private firm out of California.

Wonder what kind of moolah FHFA got for the sale? 176 million smackeroos. Value was apparently placed at 156.8 million. Hmmm, could you say there was a profit made by FHFA? Hardly. Surely, the Colony Capital people see extreme value here.

California Association of Realtors was strongly opposed to the bulk sales saying that we, here in Cali, need homes for buyers to purchase. And, they feel that it will stall the housing recovery by not having those homes available for sale through normal channels.

I'm not sure I complete agree with C.A.R. I believe we definitely need homes for sale, but I also believe by selling these in bulk we can get the REO's cleared out faster.

What's your opinion on REO bulk sales?

Ways To Help Keep Your Rentals Filled...If You Didn't Already Know

We're all hearing that housing seems to be rebounding. A ways to go, of course. but it is looking better.

As a local Realtor I do have people that purchase investment properties, myself included. So, just a tidbit of reminder information to help keep your rental properties occupied. Once more people start buying again, those after Short-Sale or Foreclosure, we may have a few more vacancies. I know, I know, I keep harping on that. I'm a nag. 

Regardless of my naggyness (is that even a word), if you'd like, please see below for some suggestions:

1) Similar to when we list a house for sale ~ Use lots of PHOTOS on your advertisements. People respond to photographs much better than the written word. And, it will help eliminate the ones that, in person, find the property not appropriate to them. Saves you time...time = money.

2) Video ~ yup. Take a video, you can do it! When it's vacant, unless there have been major changes, take it when there is no one living there. You can use the same one over and over again. People love those videos and using the same one again? Hmmm, saves time....time = money.

3) Start the search for new tenants before your unit is vacant. And, if your current tenants are good ones, OMG, ask them first if they know anyone. They can be a great referral source for you.  Work with your tenants, if they are the good kind, to show your property. They don't generally like when someone comes if they are out, so arrange it when they are there. They can practically advertise it for you....again, if they are good and happy tenants. This will help to avoid a long time with the unit being empty....time = money.

4) Use advertisement sites wisely. Make sure you are getting the quality prospective tenants from whatever advertising you are doing. Always ask the applicants where they saw your ad. Take note of where they come from and learn by the quality of applicants you get which places to stop advertising. Less time spent on those sites that don't refer quality. ....time = money.

Top 10 Things to Know about the Infamous 3.8% Tax

This isn't my opinion talking here. I've copied and pasted from the National Association of Realtors for you clarity in understanding how/if this tax effects Real Estate transaction.

1) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.

2) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property.

3) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.

4) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.

5) The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses).

6) The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.

7) In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll NEVER pay this tax, even if you have millions of dollars of other types of income.

8) The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1000.

9) It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities.

10) The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Just an FYI for ya!

'Shadow' Inventory Can Now Be Seen on Zillow

Funny how things have changed in the decade I've been helping people in and out of homes. And, funny, how so many Realtors still try to hold information so tight to their chest. Don't want to give it out, we may lose value as a Realtor.

Anyone that works with me knows I've a giver of information. And, I once had one of the owners of my company tell me I give too much info. I ignored that tid-bit, I still give tons of info out.

Needless to say, I'm perfectly fine with Zillow providing buyers/sellers information about pre-foreclosure homes. Buyers and Sellers need to know what's out there. Need to be properly informed about the condition of the market when they are deciding to contact a Realtor to help them buy or sell.

But, keep in mind, only a working Realtor knows the true value of your home that you want to sell and the appropriate way to write an offer for the home you want to buy.

Good to be informed, learn as much as you can. It's one of the most important decisions in your life. But, make sure you have a Realtor that can guide you in that decision.

Full article here: Invisible Shadow Inventory Can Be Seen On Zillow