Participating counties are Alameda, Orange, San Mateo, Ventura, Los Angeles, San Diego, Santa Clara and now, El Dorado County.

 There are also purchase price restrictions on the new replacement property.    

The purchase price of the new home can be:
100 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed prior to the date of sale of the original property,
105 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the first year following the date of the sale of the original property, or
110 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the second year following the date of the sale of the original property.

So if you have been putting off buying that retirement home in the gold country because you weren’t sure you could afford the property taxes… now is the time.

Mark Hasha
www.markhasha.com
Mark is a Seniors Real Estate Specialist helping buyers and sellers in San Mateo County.

You may not see the lines out the door but look at the stack of files on the loan agents’ desks. We are in record low territory. Rates have never been this low in the 50 years of record keeping. How low? Below 5% fixed for the next 30 years. 3.75 fixed for the next 15 years. That’s how low. If you are buying you must understand these are not normal times. Take advantage. Jump in. What other industry will fix their price for the next 30 years. Ask the gas station on the corner, if you would commit to buying your gas there for the next 30 years, will they hold today’s price.

Homeowners, no matter when you re-financed last review the situation again with your loan agent. If you do not have one I can recommend some I work with.

A note to both homeowners and home buyers:      If you are comparing rates you must compare at the same time. Interest rates fluctuate throughout the day and you want to be sure you are comparing apples to apples. You want to know what the fees will be. Also I strongly suggest you work with a person you have worked with previously or you know someone who has. The reason being a lender can quote any rate in a conversation but it is another issue to honor when reality comes. Also I suggest going with someone that only does loans. The lending rules, programs and policies are changing daily. One must be in the market continuously to be on top of it all. Going in and speaking to your favorite bank teller is not recommended. Call me and I will give you some names.

In today’s market if you put down 20% or have 20% in equity you will get the best rates. Interest rates break at $417,000 and below, at $729,750, and then again over the $729,750 each bank has their own policy. You can obtain financing with only 3.5% down or in equity. Yes you have to pay a little premium but that is nothing as compared if interest rates increase. The average interest rate over the last 25 years is about 8 %. Right now it is like the day after Christmas sale. It is almost half price. It was not that long ago that we had 14-18% interest. Try it! You will like it!

When refinancing you want to consider how long you will live in the home, how much of your present payment is going towards principal and how much will go with your new payment. It used to be if you can lower your rate by 2% then it is worth the while to refinance. I don’t think there is any real number that says you should refinance. It is a personal choice based on your finances and your goals. I suggest multiplying your old payment by the remaining term and or how much longer you think you will be in your home. Compare that cost vs. the cost at your new rate. Then compare your remaining balance. Many home buyers are putting in cash to buy the loan down to get the lowest rates and to have 20% equity. Many are re-financing into 15 year loans. Keeping the payments about the same but paying off the home in half the time. Some are financing and taking money out to buy investment property. This is an opportunity not to pass up. Talk to your accountant, real estate agent, mortgage person, financial advisor and or fortune teller.

Homebuyers don’t realize how good it is today. Let me quickly review some numbers. If you qualified last year for a $400,000 loan when rates were 5.5%, today you can qualify for $450,000 and have the same payment. Today a $400,000 loan will cost about $2000 a month. Last year that same loan would have cost almost $300 more. Don’t wait any longer. We in the business are surprised how low rates are and how long they have been low. My crystal ball tells me rates will increase but it won’t commit to when. Buying a home is an exciting and nerve racking event. With a good team (real estate agent, lender, and inspectors) supporting you we can help alleviate a lot of the stress. Call me toll free at 877-Lee-Sells and I will refer you to the good lenders I work with.

To read more click on: http://articles.sfgate.com/2010-06-24/business/21925746_1_mortgage-rates-track-michael-fratantoni-average-rate

www.leesellsmore.com

This has been one of the most frustrating and stressful experiences of my life.    As mentioned, I started talking with the bank in late 2008.    Around July of 2009, they told me that I had qualified for a certain type of loan modification.   They gave me my new payment amount and I started paying that amount.   I paid them faithfully every month thereafter.     I was concerned, however, because I never received any formal paperwork and, because real estate is my job, I knew something had to be wrong.    I called them constantly and they kept telling me there was no problem, everything was “in process.”   

I believe it was in January this year that I returned home to find a letter from the bank in my mailbox.   The letter indicated that I was in default and that if I didn’t pay them $35,000 by a certain (very near) date, they would start foreclosure proceedings.    Needless to say, I freaked out.      

After my initial panic, I went back to making my constant calls to them, re-submitted all of my paperwork and kept waiting to come home and find a foreclosure notice on my door or to find my house on the list of defaults that we get every week.   It was a terrible time.    

Luckily, in my case, after an incredible amount of phone calls I finally got an actual loan modification (notarized paperwork and all), dropping my mortgage interest rate to 2% for the first year, 3% the following year, capping out at 5% in 5 years.  

What troubles me is that I am a professional and knew who to call and that I had to be tenacious, yet I was at the end of my rope.   I can’t imagine how difficult it must be for those who are not in this business and don’t have the skills or tenacity to keep fighting.    Heck, or those who have regular jobs where they can’t sit on hold for 30 minutes every day waiting to talk to someone who actually knows nothing, repeating your story over and over for months (in my case a year and a half!)   

All I can say is, that if anyone out there is trying to get a modification….don’t give up.    Call them regularly, take notes from each call that you make and, to use my favorite quote from Winston Churchill…”Never, never, never give up.”

Kathy Wall
(415) 608-4168

Follow the link
http://www.telegraph.co.uk/culture/film/film-news/7721998/Field-of-Dreams-for-sale.html

www.leesellsmore.com

It’s still early to render a verdict, but so far so good. People recognize that the combination of low rates and lower home prices represent a great opportunity, while many shoppers who failed to find a home to qualify for the tax credit remain undeterred and, just as important, rational – understanding the go-go days of the early 2000s are over. And that’s a good thing. The market of that era was driven more by speculation and less by fundamentals. And though it was highly remunerative for many of us, we see how it turned out.

In housing, slow and steady wins the race, which is why we continue to advise our clients that today’s market offers good fundamentally sound deals that can be financed at good economically advantageous interest rates. Sounds like a win-win deal to us.

www.deanrizzi.com

Did you catch the latest 60 Minutes episode? It discusses the increase of "strategic foreclosures" where homeowners are walking away from their homes that are "underwater" (worth less than what they owe on it), even though they can afford to pay.

Currently, there are approximately 11 million homeowners in the country who are "underwater", and this number is expected to DOUBLE this year. Some would argue that it's a wise business decision to stop pouring good money after bad, but it's scary to think what would happen if everyone decided to just walk away. Your thoughts?

www.jeanjoh.com

What do these numbers mean? I am sorry to tell you, your home did not increase 20%. Buyers don’t get scared off and sellers don’t put your home on the market for 20% more than you paid last year.

These numbers are totally misleading. Prices are increasing in some areas and in some price points but not by 20%. Possibly 3-5%.

You can make numbers do whatever you want. First you need to know if the numbers are for Single Family homes or Condominiums or both. Then are they comparing it to the same month in a previous year or just the previous month.  Are they talking about median price or average price. The Median price is the price that is in the middle; there are an equal number of transactions above and below. These numbers are very general. It is interesting and might give a slight indication as to the market in the country, in your state, in your city but Real Estate is very localized down to the neighborhood in the city. If you want to know the value of your home call your Real Estate consultant.  

An example of Median prices: 

220,000
350,000
480,000
490,000
510,000

AVERAGE IS 410,000

MEDIAN =480,000

The numbers recently announced are really telling us that higher priced homes are beginning to sell. In San Mateo County 32% of Single Family homes sold in Feb. 2009 were under $500,000 that dropped drastically to 13% in 2010. Homes over $500,000 increased from 50% to 59% from Feb. 09 to Feb. 10, driving the median price up. Homes over $1,000,000 increased 11% from 17% to 28%.

The number that shocks me is that over 27% of all sales in the nine county Bay Area were paid in cash. That is with a median price of $354,000. Many people are taking money from the stock market and or IRA account and equity from their homes. Cash is King.

Please look at the numbers below. Inventory has decreased more than 10%, sales have increased almost 10% and the days on market has decreased a dramatic 25%. This is for single family homes listed on the MLS.  All the numbers are indicating good things ahead.

San Mateo Cty. Inventory Sales DOM
Feb. 2009 1576 208 83
Feb. 2010 1346 228 64

http://www.dqnews.com/Articles/2010/News/California/Bay-Area/RRBay100318.aspx

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

www.leesellsmore.com

Home Buyer’s Delight
You can still get the federal Home Buyer Credit of $8000 for the first time buyer or $6500 for the move up buyer. You must be in contract by the end of April and close by the end of June.
For additional information:  http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Because California Home Buyers are special Governor Schwarzenegger signed into law a State credit for home buyers. I personally think this program is great. It helps many people purchase their first home and it puts people to work. A Win-Win!!!
Under the provisions, the bill:           

• Provides a 5% tax credit, up to a $10,000 limit, to all buyers of new, never-occupied homes.
• Provides a 5% tax credit, up to a $10,000 limit, to first-time buyers of existing homes.
• Sets aside $100 million for each program, for a total of $200 million.
• Requires buyers to close escrow between May 1 and Dec. 31 to qualify. New-home buyers have until Dec. 31 to sign a purchase contract, and then must close escrow by Aug. 16, 2011.
• Requires buyers to live in the home for at least two years.
• Provides for the tax credit to be paid in thirds over a three-year period.
• Sets no income limitations on buyers.
• Requires buyers to repay the tax if they fail to live in the home for two years or fail to close escrow on a new home by Aug. 16, 2011.

For additional information: http://gov.ca.gov/

http://www.mercurynews.com/news/ci_14758523?nclick_check=1

Bay Area Home prices increase 20%
The number of home sales in the 9 County Bay Area were down for Feb. 2010 as compared to 2009 but the median home price increased more than 20%. I wish I can tell you that your home went up 20%. What I can say is that the higher priced homes are beginning to sell after months of being stagnant.
For more details:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

Having trouble making payments? Have no fear help is finally on the way.

Bank of America has announced a program for a select group of Countrywide loans where they will forgive the principal. Yea! Let’s hope others will follow.
Please click on the link for the details. http://www.bankrate.com/finance/mortgages/bank-of-america-offers-home-loan-forgiveness-1.aspx

HAFA –Home Affordable Foreclosure Alternatives
The federal government has recently announced a new program to take effect April 1 2010. It will make the loan modification and short sale process easier and more systemized.
For additional information: http://www.realtor.org/government_affairs/short_sales_hafa

Just yesterday Obama announced and even newer program focusing on people owing more than their home is worth, people underemployed or unemployed. Stay tuned. The details of that are not out yet.

All these programs are great but my solution I think is more of a Win-Win. I propose to reduce the principal to market value and then the bank and owner should share in any equity build up when the home is sold. Under the Lee’s Act, the homeowner stays in their home, we maintain home pricing by putting a stop the deluge of short sales and foreclosures and the banks and homeowners have a chance to make some money down the road. Everyone wins; Homeowner, bank and neighbors by stabilizing home prices and avoiding blight!

Tax Relief for Debt Forgiveness
State Tax Relief for those who incurred debt forgiveness from a lender through the loss of their homes to foreclosures and or short sales is still up in the air. I believe the IRS is ok with it until 2014 but California is still up in the air. Governor Schwarzenegger is asking for a proposal before April 15.
Click the link for additional information. http://www.sacbee.com/2010/03/16/2609494/california-tax-relief-for-forgiven.html

Homeowner Savings
Are you considering purchasing a new appliance. The California’s “Cash for Appliances” begins on Earth day, April 22, 2010 and runs only for a month. Purchase a new energy efficient appliance and recycle your old one and you are eligible to get up to $100 per appliance.
The program highlights are:
Purchases starting Apr 22, 2010 until May 23, 2010

· Claim within 30 days of purchase

· Claim by Jun 22, 2010

• May be combined with other rebates
• Must recycle existing appliance
• State resident

Click on the link for the real details. http://www.energy.ca.gov/recovery/energystar.html or http://www.kcra.com/cash-for-appliances/21363879/detail.html

and More Energy Efficient Savings:
Our federal government still offering a credit if you purchase an energy-efficient product or renewable energy system for your home. You may be eligible for a federal tax credit if you replace water heaters, solar energy, windows, doors, heating and cooling systems and more.
You will find an overview of the federal tax credits for energy efficiency by clicking on the link: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Capital Gains Tax
If congress does not act Capital Gains tax will be increasing by 5% in 2011. They could propose to increase it even more. Due to the economy it is doubtful for them to maintain the current capital gains rate OF 15%. If you are considering selling an investment property today might be the right day. Call me toll free at 877-Lee-Sells. http://money.cnn.com/2010/02/01/pf/taxes/obama_budget_tax_changes/index.htm

So there you have it in a nut shell. Hope you found it enjoyable and helpful. Please, I encourage you to share your good news, comments, updates and questions.  If clicking on the links do not work please copy and paste.

Please visit me at:  www.leesellsmore.com