Realtor Rate Sheet 1/25/10 (Rates Steady from last week)
Conforming to $417k
PRIMARY | 1 pt. | 0 pts. |
30 yr fixed | 4.875 | 5.125 |
15 yr fixed | 4.25 | 4.375 |
10/1 ARM* | 4.375 | |
5/1 ARM* | 3.625 | |
5/1 I/O | 3.75 | |
RENTAL | | |
PRIMARY | 1 pt. | |
30 yr fixed | 5.125 | |
15 yr fixed | 4.5 | |
RENTAL | | 1.0 pts |
PRIMARY | | Pts. |
30 yr fixed | 6.0 | 1.0 |
5 yr fixed | 4.875 | 1.0 |
5 yr I/O | 5.0 | |
FHA 96.5% to $417,000
PRIMARY | 1 pt. origination |
30 yr fixed | 4.875 |
FHA JUMBO 2009 – to $687,500
PRIMARY | 1 pt. origination |
30 yr fixed | 5.0 |
720 credit score, fully documented
income and assets,30 day lock.
Conforming primary fixed: 20% down
Conforming ARMs: 25% down
Conf. Rental: 25% down
Conf Jumbo Fixed: 25% down
Conforming Jumbo Rental: 40% down
Jumbo primary: 25% down.
“JUMBO/CONFORMING” LIMIT: $687,500
This information is intended for use by industry professionals only. It is useful as a quick snapshot of purchase rates for the above date, but does not constitute a formal rate quote for a particular borrower, property or scenario. Rates change DAILY and are subject to extreme market volatility!
Rates and guidelines are in constant flux and DO change without notice, including higher credit score requirements or reduced LTVs. IMPROVED pricing is sometimes available for lower LTVs and/or superior credit. Please call for details.
*5/1 or 10/1 ARM refers to an adjustable rate mortgage that is fixed for 5 or 10 yrs, then adjusts yearly thereafter. I/O means an “interest only” payment option.
**Regular Jumbo – Owner occupied to 65%. Add-ons apply for loans over $625K.
***USDA - Moderate income, $417k limit. CALL for details!
There is a new listing on Hays Street. It is a small gem of a home with 2 bedrooms and 1 full bathroom and nice backyard. This home is in Immaculate condition, it has hardwood floors & gorgeous wood burning stone fireplace in living room. Also it has a large terraced, sunny back yard, with a nice patio. The remodeled kitchen has stilestone counter tops, gas range & lots of storage, The roof is newer. It has forced air heating which is a huge update for these little vintage homes, since they were usually built with wall heaters. The bathroom has been updated and is really sweet. There is a really nice sweeping city view from the front porch. This is a really desirable neighborhood close to Poly. Here are some photos:
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If you would like to see this beautiful little home priced at $476,000, just give me a call at 805-801-5529 and I will be happy to arrange a showing for you.
So far I've talked about how difficult short sales are from the buyer's perspective they are a huge waiting game with the lender possibly counter offering unreasonably at the end rather than accepting the offer, or rejecting the offer outright. This after months of patiently waiting to hear anything from the negotiator for the lender.
I've also talked about the pitfalls for the seller/borrower. After losing the property with any down payment the borrower put into the property, having their credit stomped on, and feeling demoralized by the whole process, there could be the IRS 1009 and/or the promissory note or deficiency notice which basically has the seller on the hook for the difference between the sale and what is owed. ...The reason the seller did a short sale is to get from under all this in the first place!
Well, there is another way. If you own property in San Luis Obispo County and you are in trouble, read this over carefully. It could really help you.
I work with a company, Solutions Real Estate that specializes in purchasing homes where the owners are in trouble and the only way out for them is to get out from under the property. The property is not worth what the owners paid for it; there is no way it will sell for what is owed in today's real estate market. This company pays CASH for the property and negotiates directly with the lender. No putting the property on the Multiple Listing Service at a price the agent thinks it is worth and then waiting for an offer...which can take a very long time.
Solutions Real Estate has a real estate attorney and a CPA on staff to assist the seller with understanding the process and any financial/tax consequences for the seller. They provide debt relief, and protect sellers from deficiency notices and promissory notes. In a nutshell the seller must be in this situation:
They are going to lose their house
They cannot make any profit on the sale of the property
This will get them out of their debt obligation, provide them debt relief
This protects them from deficiency (even primary owners can get judgments on 2nd mortgages and refinances!)
Help in understanding potential tax consequences (sometimes there is just no getting away from the IRS, but at least understand your position)
Protect credit as much as is possible
That's it. The process is straightforward and Solutions Real Estate has over a 90% success rate in completing a satisfactory solution for the seller. Two more great points:
If the seller does not approve of the negotiated settlement, they may back out completely
THIS WHOLE PROCESS DOES NOT COST THE SELLER ANY ADDITIONAL MONEY.
Sellers in this terrible situation have suffered enough, Please contact me if you are interested. I have joined forces with this company because there is a real need for sellers to be able to get out from under with consultation from a real estate attorney. Normally, my short sale clients have no extra money to hire an attorney, even when they should be consulting one. They may not even have an accountant to explain their unique position with the IRS.
Solutions Real Estate offers real relief. That's why I have found them and why I would recommend them to all my San Luis Obispo County clients in this position. They offer the fastest least painful way to move on with life and get this behind.
As I had mentioned, there is a lot of paperwork involved for the seller in completing a short sale. Even though it can be overwhelming, it really is important not only to pay attention to what is in the paperwork but also to be sure to retain it for possible future defense. This is because of bad consequences that the seller may experience sometime after the sale has taken place.
The best scenario for a short sale is that the seller walks away with no equity, loss of their home and damaged credit! That is bad enough, but there are other potential problems that can show up when all the seller wants to do is forget about the whole thing. One is that the lender, or the lender’s assignee, may continue to pursue the seller for the remainder of the debt. The other is that the I.R.S. may seek tax on the amount of debt that was unpaid.
The first possibility may be in the paperwork that the seller must agree with for the short sale to finally close escrow. The seller may be required to sign a promissory note for the difference between the debt owed and the short sale proceeds received by the lender. Or, a lender may require the borrower to acknowledge that the lender reserves its right to pursue the borrower for this amount at a later time. !!!
The second possibility resides in the fact that, if a debt is forgiven, the borrower may be taxed on the amount he didn’t have to pay back. (see I.R.S. publication 4681). To be sure, there may be short sales where the debt that is unpaid is not taxable, such as if the home is the primary residence of the borrower. Let me say that anyone facing a short sale must consult with a tax professional as well as a real estate attorney. It is against the law for Realtors to advise sellers in these matters.
With a short sale, here’s a horrible consequence that can happen. Not only having to face paying back the debt to the lender by signing a promissory note, but then getting a tax bill for the debt forgiveness on top of it! Yikes!
How can this happen? Let’s say the bank requires the borrower to sign a note for the difference, or to acknowledge that the bank can collect the difference later. Then the bank sends out a 1099-C, informing the I.R.S. that a certain amount of debt had been cancelled. Same money, two actions. Big contradiction.
How can this happen, you ask? Well, these lending institutions are huge and one processing area of the company quite possibly is not coordinated enough to keep everything straight for every file. Plus there are just so many sellers short selling these days. I have had my short sale negotiators change on me mid transaction. It is a very chaotic situation.
The lesson is: sellers be sure to keep all paperwork. If there is a document stating the bank may persue unpaid debt, keep track of it so if a 1099-C form shows up saying that the debt was forgiven (and, therefore, taxable), there will be proof that the 1099-C is incorrect.
Conversely, suppose that there was no specific release of the debt and that the paperwork contained no reference to it. Then, if the seller receives a 1099-C, saying the debt was cancelled, he should keep that, just in case the bank, or its assignee, comes calling a year or so later, trying to collect the debt. I can’t stress enough that any seller facing the unpleasant prospect of short selling property needs to consult with a tax professional as well as a real estate attorney. Period. Do not rely on what you’ve read or what you’ve heard. Get a professional in your corner.
I have another way to ensure that sellers do get the counsel of a real estate attorney as well as a CPA at not cost to the seller. More to follow…
One of the solutions for a property owner who is having difficulty maintaining mortgage payments on their property is to short sale the property. What is a short sale? A short sale is when property is sold at today's market value even though the value is less than what is owed on the property. This has happened mainly to owners who bought in the last run up on prices. It can also happen to those owners who tapped into their home's equity through a home equity line of credit, otherwise known as a HELOC.
Many home owners realize that the best solution for them is to get out from under the debt their property is putting on them. This can be done through a short sale or by actually walking away from the property and allowing the lender to foreclose on the property. Both get the seller out from the debt. But there are differences. The main difference for the seller is that a short sale does much less damage to a person's credit than a foreclosure. With a short sale, you'll be able to get back in the real estate market in two years, with a foreclosure, it will take more like seven years. Big difference.
One way to complete a short sale is to list the property with a real estate agent who will set the price at market value to get offers. In the meantime, the seller prepares the case for doing the short sale rather than continuing to make the payments to the lender. Typically, the lender requires several pieces of information from the seller:
With this information and a well qualified buyer's offer, the lender will assign a negotiator. This part of the process can take anywhere between 30-60 days after obtaining an offer. After the negotiator has the file, the offer may be accepted, countered, or rejected. Then if there is a second mortgage, such as the HELOC, there is further negotiation to go through before escrow can complete the transaction.
The most difficult part of a short sale is the waiting. Many clients have told me that short sales should be dubbed "Long Sales"because of how long the process takes. And there is no amount of threatening or cajoling to make the process go any faster. Buyers walk away in frustration all the time.
When short sales first came on the scene a couple of years ago, the huge disadvantage for the seller is that they were hit with a 1099 form from the IRS for the amount of the debt forgiveness. On primary residences, this has been abolished. But, and this is a biggie, the lender may ask for a promissory note for the difference or retain the right to get the money from the seller at a later time. There is a theory out there that these lenders are waiting for better economic times to come back to the sellers.
It is important to have a real estate attorney look over and advise the seller before settling with the lender. Even better, a real estate attorney and a CPA. That way the seller will have a clear picture of the ramifications of a short sale.
There is another way to do a short sale...
Broker's Tour is today, and here is a beauty. Part of the reason my profession is so fun for me is that I get to see home renovations that transform run down old houses into beautiful show pieces that respect the homes potential. I think that is what we have here. These folks purchased this run down Victorian that had been a dilapidated..and I don't use that term loosley...student rental and totally brought it back to glory!
Apparently the owners got a job promotion and are moving out of town. We should all thank them for leaving San Luis Obispo a little nicer than when they found it. Here's some pictures highlighting this complete period home renovation:
This home has three bedrooms, 2 bathrooms and is 2200 sq ft. It was built in 1900. It is listed at $947,900
Here are the rates sent to me today from a great local experienced lender. Chrys and Larry Barnes at Pacific Capital Mortgage
Here's their number: 541-5353
Realtor Rate Sheet 12/14/09 (Rates Mainly steady from last week)
Conforming to $417k
PRIMARY | 1 pt. | 0 pts. |
30 yr fixed | 4.75 | 5.0 |
15 yr fixed | 4.25 | 4.375 |
10/1 ARM* | 4.5 |
|
5/1 ARM* | 3.625 |
|
5/1 I/O | 4.0 |
|
RENTAL | | |
PRIMARY | 1 pt. |
|
30 yr fixed | 5.0 |
|
15 yr fixed | 4.25 |
|
RENTAL | | 1.0 pts |
PRIMARY |
| Pts. |
30 yr fixed | 6.0 | 1.0 |
5 yr fixed | 4.875 | 1.0 |
5 yr I/O | 5.125 | |
FHA 96.5% to $417,000
PRIMARY | 1 pt. origination |
30 yr fixed | 4.75 |
FHA JUMBO 2009 – to $687,500
PRIMARY | 1 pt. origination |
30 yr fixed | 4.875 |
720 credit score, fully documented
income and assets,30 day lock.
Conforming primary fixed: 20% down
Conforming ARMs: 25% down
Conf. Rental: 25% down
Conf Jumbo Fixed: 25% down
Conforming Jumbo Rental: 40% down
Jumbo primary: 25% down.
“JUMBO/CONFORMING” LIMIT: $687,500
This information is intended for use by industry professionals only. It is useful as a quick snapshot of purchase rates for the above date, but does not constitute a formal rate quote for a particular borrower, property or scenario. Rates change DAILY and are subject to extreme market volatility!
Rates and guidelines are in constant flux and DO change without notice, including higher credit score requirements or reduced LTVs. IMPROVED pricing is sometimes available for lower LTVs and/or superior credit. Please call for details.
*5/1 or 10/1 ARM refers to an adjustable rate mortgage that is fixed for 5 or 10 yrs, then adjusts yearly thereafter. I/O means an “interest only” payment option.
**Regular Jumbo – Owner occupied to 65%. Add-ons apply for loans over $625K.
***USDA - Moderate income, $417k limit. CALL for details!
As of today, Monday, December 14, rates are Mainly Steady from last week. You'll find conforming owner occupied SFR purchases in the high 4s or low 5s for most qualified borrowers. Be sure you call for up-to-date pricing if you need to quote clients later in the week. The market has been somewhat volatile, so we are off our extreme low rates of a couple weeks ago.
Check out the 5/1 ARM (five year fixed) for clients who can handle slightly more interest rate risk or who have a "Five year plan" for the home they are purchasing. At least for the time being, rates are into the 3s on this program for those with good ltvs and credit scores!
Also, be aware that Fannie Mae guidelines are have become much more conservative with respect to the borrower's debt ratio as of December 12th. It's more important than ever to get your buyers prequalified in order to ascertain immediately whether or not their financial picture meets Fannie Mae guidelines.
Here are some programs you should keep in mind:
- FHA ... Primary residence. Good for lower credit scores or less than 20% down. Minimum down payment is 3.5%. Down payment and closing costs can be (documented) gift funds from relatives. FHA Jumbo goes up to $687,500 in SLO County.
- USDA ...Primary residence. 100% financing option for moderate income buyers who are looking for a modest starter home in semi-rural communities such as Los Osos, and certain parts of North and South County. PLEASE NOTE: USDA is subject to running out of funding at this time of year. Call with inquiries if your client wants this program.
- Agency Jumbo 2nd Home Purchases ...80% up to $561,000
- Condos ...51% Owner Occupancy requirement WAIVED when subject is for primary residence or 2nd Home (Conforming to 80% Ltv/established projects only)
- Reverse mortgages. Allows seniors to gradually borrow back part of their home equity and use the proceeds for basic living expenses, home care, etc.
A client of mine has been looking for the perfect low priced home in North Grover Beach for quite some time. It has been fun watching the least expensive single family home market. Not only have we been looking in North Grover as it is known by the locals, we have also looked at little homes in Arroyo Grande and the Shell Beach community of Pismo Beach. I think we have been looking for almost a year!
Finally we have found a very interesting little house on North 10th St and Mentone in Grover Beach. Built in 1949, this property has 2 bedrooms and 1 bathroom and is just under 1000 sq ft. It is listed at $281,900.There are hardwood floors and an updated galley style kitchen. It sits on a corner lot and there is a distant ocean view from the living room and the front yard. There is a detached garage that has been converted with a little bathroom in it. Big corner lot too. The house next door is pretty bad, but I think there are ways he can camoflague that.
The thing is, the potential buyer hasn't seen it yet. I found it about an hour after it went on the market. I hopped in my car and ran over to take a look. I think it is just what he wants. We had agreed that we had been searching so long, that I pretty much know what he's looking for and if I found something I think he should grab hold of, we would make the offer. Well, that's exactly what we did. I thought for sure when we submitted the offer on Tuesday evening, we wouldn't hear back from the bank before next Monday. In the meantime, my client is running up here after work (he's a teacher in L.A.) on Friday. But, no, of course the bank was super efficient and we got acceptance today! Awesome. I hope he wants it!
Here are some pictures...look for potential here:
Notice the coved ceiling and the cut away? I think these hardwood floors will clean up nicely. There is a soft spot next to the kitchen sink and the place stinks! I was told by the listing agent that the previous tenants were heavy smokers. Hopefully we'll fix the leak in the plumbing, clean the place up and paint it and well have the beginnings of a sweet little cottage...just what he's wanted for a very long time. Then again, he may not like it. In which case we'll keep on a lookin' . Geeze this is fun!
I currently have clients who have been waiting for an answer on their offer on a short sale property here in San Luis Obispo. They've been waiting a long time now; over two months. Two months. Long time to wait for a buyer. Especially a first time home buyer.
That's the thing about short sales for the buyer. They take a long time. No matter how I caution the buyer about how long the process takes for their offer to be accepted, or even acknowledged, they get sick of waiting and I don't blame them. Typically they tell me to threaten the lender that if we don't get a response, they'll pull their offer. Lenders do not care about this. They'll just wait for the next offer. Or foreclose. Whatever. Anyway, that's how they seem.
When selling your property for less than what is owed on it (definition of a short sale) and your lender is open to the idea of debt forgiveness for the balance of what is owed, there are lots of documents that need to be prepared and packaged for your lender. The lender wants to see some form of hardship and inability to make the payments on the loan. So, typically the lender will want a package of documents from the seller that includes:
Once an offer is accepted by the seller, typically the offer is bundled up with the borrowers hardship package and faxed to the Loss Mitigation Department. By the way, every page of the package has to have loan numbers printed on the top. After faxing the package, which can be an inch thick, the first period of waiting begins. Wait for the fax to get into their system. Typically, this is three days. I have called after this three days, only to be told that the fax was never received. So, I do it again. And possibly again. Yes, I've had to fax the package several times! I finally got it through along with a FED EX copy, because I just could not stand it any longer!
Next, we wait to be assigned to a negotiator. This takes at least 30 days, even though they will claim it will take 14 to 21 days. Then when the negotiator gets the package, I am told he'll have an answer in about two weeks. So, we're at 2 months wait time so far. I usually cannot contact the negotiator directly. The gate keeper (phone operator) just sends an email at my request, or just notates the file when I've called to see what's going on with the file. The buyers are usually fairly frantic at this point. I am just praying that their agent has cautioned them about the waiting and that they'll hang in there and that they won't go on to find something else that isn't such a pain to buy.
Eventually, we either get acceptance or the potential buyer receives a counter offer. Hopefully we will work out the counter offer and proceed with escrow. Normally the lender will not pay for any repairs to the property. So, the seller disclosures and the home inspections are VERY important. I would not let a short sale property close escrow without a home warranty either, by the way. That way, the buyer will have some warranty protection for all those little repair problems after the close.
But there are two real kickers for the seller when a short sale is involved. They are called Promissory Notes and Deficiency Judgments. Sometimes the lender will not close the escrow without the borrower accepting a promissory note (another loan), or without the lender reserving the right to come after the borrower at a later time for the difference. Yikes! As a seller, just when you think this will be behind you, they can come back after you for money. Maybe not tomorrow, but they can someday.
Finally, the other caution is that unless you are short selling your primary residence, the amount of debt forgiveness will be reported to the IRS and you will receive a 1099 form, and pay taxes on the amount.
Another caution is that if there is a second mortgage on the property, the holders of the second must go along with the short sale. Normally, they get very very little from the short sale. Sometimes they agree and some times they just won't play ball. I have seen deals just fall apart after all the waiting. Sad.
Short sales can result in great deals on property, but both the seller and the buyer have to be ready for a serious waiting game.
Looks Like there may be a sewer in Los Osos' future. This article is from the Tribune, written by David Sneed
Los Osos farmland set for long-awaited sewer
David Sneed
An unremarkable 38-acre plot of land on the outskirts of Los Osos is set to become the focal point of one of the county’s longest-running infrastructure controversies — the Los Osos sewer project.
Some form of sewer system to replace the hundreds of septic systems in the town has been under consideration for the past 30 years.
County public works officials are putting the finishing touches on plans to build the project’s sewage treatment plant on the 38-acre parcel located north of the Los Osos Valley Memorial Park known as the Giacomazzi site.
The treatment plant is just one component of the $165 million project. Sewage collection and effluent disposal systems are also planned for the bayside community of 14,000 residents with about 12,500 directly affected by the sewer project.
In January, the project will face its final regulatory hurdle — the California Coastal Commission.
Twenty-two appeals of the project have been filed with the panel, including one from the commission itself. County supervisors will hold a hearing Nov. 24 to address the commission’s concerns about disposal of the plant’s effluent in hopes of improving the likelihood of a speedy approval.
County officials are also arranging financing for the project. They expect the work to be financed with a combination of state and federal loans and grants and a voter-approved property tax assessment. They expect the project to receive federal stimulus money, with a decision about how much the allocation will be in March.
“When you are doing a project of this size, you don’t just have one source of funding,” project administrator John Diodati said. “You have to go to three or four pots.”
Building a sewage treatment plant anywhere in the Los Osos area would be difficult, and the Giacomazzi site is no exception. It consists of gently rolling hills.
Loss of 38 acres of farmland is just one drawback.
The site must be graded significantly to prepare it for construction. This means that scattered Chumash Indian artifacts as well as remnants of historic farm buildings might be disturbed, said Mark Hutchinson, the project’s environmental manager.
“We don’t expect to find burial sites or anything like that,” he said.
The plant will use an extended aeration treatment process that injects air into the sewage to promote bacterial consumption of pollutants. Officials say they expect any odor the plant produces to be kept onsite.
Another crucial component of the project is across town at an eight-acre parcel known as the Broderson site. This is where about a third of the plant’s treated effluent will be returned to underground aquifers via leach fields in order to replenish groundwater and prevent saltwater intrusion.
The Broderson site sits on a hillside just south of town. The effluent will be discharged into the sandy soil using buried perforated pipes.
Because the leach fields will be underground only fencing will be visible aboveground, Hutchinson said.
The leach fields are part of a larger 88-acre parcel. A variety of restoration work is planned for the site; it’s intended to offset environmental damage caused by other aspects of the sewer system as well as grading done at the mid-town Tri-W site that was part of a previous, failed attempt to build a sewer system.
Restoration work will mostly consist of removing invasive species such as nonnative grasses and some eucalyptus trees. The goal is to improve the site as habitat for the Morro Bay kangaroo rat, a federally listed endangered species.
This afternoon I went out to Los Osos to check out a free outdoor concert put on at The Sea Pines Golf Course. The weather was beautiful; crispy and breezy, finally feeling like fall. Both bands are local favorites, Louie Ortega plays sort of Tex Mex R&R and the Cadillac Angels who have a really fun rockabilly style.. The crowd was mellow and not too large. Everyone was enjoying the music and the pretty day on the lawn. Seems like a new outdoor concert pops up regularly these days and for good reason. Live music is fun! I hope the concert crowd grows for them. Great fun. Beautiful setting.
Here is a beautiful home for sale in San Luis Obispo that I saw on the last brokers tour of new listings which happens every Tuesday morning here in San Luis Obispo. There were several nice properties, but this one stood out for me. The photos unfortunately do not show how nice this property is. In fact,I thinks a whole new set of pictures are needed. This house is now vacant, and without the furniture, the size of the rooms and the layout are just wonderful.
This immaculately clean home really shows much differently, now that the owner's belongings have been moved out.. It's truly move-in ready and you won't find a better deal per square foot ($248.30 )in this market. From the lime stone bathroom features, to the solid oak kitchen floor, newly refinished cabinets, new carpet and interior paint, professionally landscaped front & back yards to the custom exterior window awnings - it is really a nice livable home. This is not a short sale or bank owned property so you won't have to wait for a lender's response which could take months.
The house is about 2,800 sq. ft. with three bedrooms, three full bathrooms, a living room and family room off the kitchen that are sunny, bright and clean. The lot is over 10,000 sq ft and the back view is of the lovely Irish Hills at the south side of town where there are great hiking trails.
I liked the price too...$729,000!
Okay, so I took some buyers out last week and we found a beautiful home in Berry Gardens subdivision in Arroyo Grande (see the pictures of this lovely home). It was just what they were looking for; single level, with 3 bedrooms and 2 bathrooms, nice and sunny kitchen and living room, great backyard, and so forth.
We saw the home during an open house, where we asked if there was a Home Owners Association and what the CC&Rs (Covenants Conditions and Restrictions) were.From my experience, all subdivisions have CC&R's and by the looks of this pretty little neighborhood, it would be no different. So, I was surprised when the listing agent said that there weren't any...
Just so you know, CC&Rs are rules and regulations for the homeowners. They are designed to support the look and feel of the subdivision by dictating things like if you can park your car in the driveway, if you have to keep the front lawn and the color you may paint your house, etc...
So, even though the place looked like there were CC&Rs, we were told there was not. I wasn't sure how it all stayed so pretty, but we made an offer.
The offer was beautiful; all cash, 30 day escrow. The sellers were delighted, and the buyers were too. They accepted the offer right away, and off we went into our escrow. We scheduled the home inspection right away.Of course it went really well for this little beauty of a home. I had seen a couple of fogged windows that would probably be replaced under warranty..that was about it as far as problems.
I received my package from my wonderful escrow officer. You'll never guess what it contained...wow, you're good....The CC&Rs!!! So we're looking these rules over and there are some kind of important things in them. For example, no drying laundry on a line, no antennae, no sheds as in garden sheds in the backyard. What is funny is that there is no Homeowner's Association to enforce the rules. I called an attorney who works for the subdivision and who lives there, and she said that the CC&Rs are basically enforced sort of informally by neighbors. So, if an owner wanted to do something that breaks a rule, it's okay as long as no one complains....Quite arbitrary really.
My clients declined to buy this home because of the restrictions. They just did not want to have to consider CC&R restrictions every time they wanted to do something with the property they own. So, we canceled, and I totally understand. It is important to note that they canceled within their rights per the purchase contract and will be receiving their full deposit back. Their cost for this transaction was the home inspection ($355.) and their wasted emotional excitement.
We will find them something else, more suitable.
Covenants, Conditions and Restrictions are something all buyers need to consider when shopping for a home in a subdivision. Many people don't mind them. In fact the seller here was not even aware of them. But you should be. Especially if you want a garden shed, or want to set up your antennae for your radio.
If your neighborhood is similar to that of most Americans, you may see more homes for sale signs now than any time in recent history. Due to overly aggressive marketing tactics of the mortgage industry (wink, wink), many people were over extended in their borrowing and got in trouble with paying their mortgage.
This lead to lots of short sales, foreclosures and homeowners anxious to sell their homes.
The problem is that the news media is scaring potential homeowners from buying a home in a time when the best opportunities are all around you. In every town on the Central Coast prices have come down significantly, creating some very good opportunity.
The mortgage industry crises as the media has termed it has created an abundance of motivated sellers which is why the time to get into real estate is now. If you are a first time home buyer (defined as not owning property in the last three years), the federal tax credit of $8000. adds to the benefits of buying now.
If you are afraid that housing values will fall you should not be too concerned as long as you are not trying to “flip” the property immediately. Long term investment in real estate is where we are now. Short term drops is by no means an indication of the long term real estate market trend, which has been up up and up.
If you would look at a 1 year graph of home values it would seem that this is the worst investment and only a fool would be buying a house now.
I prefer to look at the long term graph of about a 30 year span. Investment returns with that timespan look very good. Homes values have been steadily and consistently climbing over a 30 year period, and in this period there were some bumps along the way but the trend is still solid.
So instead of panicking you should be looking for the best opportunities around you. You can basically cherry pick the real gems. If you are thinking about buying a single family house or an investment property, this is your time to buy.
One of the richest man in the world once gave this gem of advice, "Buy when everyone gets out and sell some when everyone gets in". You can not let the news media dictate your outlook on the market. For some reason, bad news sells, worse news sells better!
If you have been thinking about buying a home or an investment property there may never come a better time than now! Even if you are just curious about a certain market segment, give me a call and let’s take a look.
Great news!
As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.
Wow! This should really benefit many buyers in our San Luis Obispo County Real Estate Market. I had a feeling the government would extend these valuable credits to keep the economy moving toward recovery.