25. January 2012 by Michael McFarlane.

FHA loans have always been a great way for a young (just beginning) family to get into home ownership.  They require less down payments, have lower requirements for income and other qualifications.  They are generally guaranteed by the government.

However, the recent price downturn has caused some problems with them.  At a time when buying is at an all-time great, many are left out because they are unable to save enough to make the down payment (even though it is small) and pay all the closing costs.

A home seller might offer to pay some or many of those closing costs in order to get their home sold.  Makes sense, right?  That’s the normal way of doing business.  But, in an effort to prevent a repeat of the financial meltdown FHA has limited the amount that can be contributed by sellers. 

On the other end of the equation, in order to get our economy on the road to recovery (or moving faster) we need to get the foreclosures off the market (read sold).  Prices and interest rates are creating that perfect buying scenario for the beginning home owner, and they are a great source to clean up the REO market. 

This is the group of buyers willing to put in the work as required on some of these homes.  With sweat equity they then have more home than otherwise possible.  It just makes a great way to get started, and helps the market at the same time.  It cleans up our neighborhoods, stabilizes the market, puts more people to work…the list goes on.

Well, it looks like the FHA is NOT seeing this, and may lower the limits on seller contributions allowed.  This will make it harder, or impossible, for some to buy.  While we do not want a repeat of the meltdown, we do think the recovery needs a little help.

$ To read the full notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

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21. January 2012 by Michael McFarlane.

Proposed changes in the Governor’s Budget call for “consolidating” some agencies.  One of those would be the DRE (Department of Real Estate).  It is all dressed up as a way to save money by eliminating duplicate expenses, thereby reducing the need for tax dollars.

We see it as a state level reiteration of the Social Security fiasco.  By “combining” agencies they are combining money pools.  Read that as taking money; money that is used strictly to regulate real estate practices and protect the general public.  While we don’t enjoy regulation any more than the next guy, there is an absolute need for protection from the unscrupulous.

Could this protection be accomplished or even improved by joining forces with other agencies?  Possibly; everything can be improved.  But that is not the object here.  This is a budget maneuver.  This is being touted as a cost savings.

How can you save when the cost is already $0?  You read the right; it’s not a typo.  The DRE is funded not by tax dollars, but by the fees we pay for licenses and services.  Part of the fines collected are also added to this pot.  Operating costs and enforcement are taken from this pot.

This is where the comparison to Social Security comes in.  The DRE has a positive account balance.  This is required to operate without using credit, as we do.  By “combining” DRE with tax supported agencies, our money gets added to their pool: you know, that pool that is not only dry but deeply in debt!

End result: Increased cost to tax payers AND less protection!  This is such a disgrace that the California Association of Realtors® is once again stepping in to support the DRE in their defense of the measure.  Once again government is asking you to pay more and accept less for it!  Time to say “NO”!

$ To read the notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

         Subscribe to Listings Updates          Free Home Warranty

Search the MLS                 Over the Back Fence

          Home Rescue Group               Free Home Market Analysis

                     Yuba-Sutter Real Estate Today

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18. January 2012 by Michael McFarlane.

For some time our Spanish speaking friends have been at a bit of a disadvantage in the real estate world.  While some, like us, have realized the importance of nurturing relationships, it is a difficult task when a language barrier is present.  Many, even big companies, still are unable to deal with it.

Some have hired agents specifically to fill this need.  We, working as a team, have the ability to put an agent in front of a client that will make them comfortable.  But that still left a gap.  Unlike those of us comfortable with the English language, the internet was still pretty much unreachable.

Last month C.A.R. launched it’s new service: a Spanish based web site.  Called Sucasa the idea is to level the information availability.  We’d like to hear how it’s working.  What needs working on, what works, etc.

$ To read the notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates              Free Home Warranty

                Search the MLS           Over the Back Fence

Home Rescue Group          Free Home Market Analysis

                   Yuba-Sutter Real Estate Today

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5. January 2012 by Michael McFarlane.

Some time back, in an effort to protect the public from predatory practices the FHA laid out some very strict rules regarding how investors could, or could NOT, use federally insured loans to finance their business.  Flipping is the general term used to describe the practice purchasing a home needing repair, then quickly doing that repair and reselling the home at a profit.

Unfortunately, some unscrupulous types gave the practice a dirty name, even committing bank fraud in their purchase practices.  They might purchase the home at an artificially low price by misrepresenting the home’s and neighborhood’s value, then resell it at a huge profit doing little or no repair work.

A second unsavory practice we’ve observed is doing only superficial and/or cosmetic work leaving the real defects but hiding them from view.  In the latter case the buyer is actually defrauded by misrepresentation of the home’s condition.

In an attempt to curtail this, the feds refused to insure the flip type transactions.  The unfortunate result was that honest investors and contractors were also prevented from getting the funding needed to help get these blighted homes into a salable condition and back onto the market.  For this reason we applaud the recently overturned decision.  Within strict guidelines flips can now be funded using FHA guaranteed loans, and the new home owner can use and FHA loan to purchase it.

The practices the decision tried to stop are already illegal.  It is illegal to misrepresent the value to the bank in order to buy a home, and it is also illegal to NOT disclose all known facts to a buyer that might influence what a prudent buyer might be willing to pay (set the price).

$ To read more on the overturned decision go HERE.

How does this effect you? Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates        Free Home Warranty

    Search the MLS                                 Over the Back Fence

     Home Rescue Group                               Free Home Market Analysis

                           Yuba-Sutter Real Estate Today

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2. January 2012 by Michael McFarlane.

However you celebrate it, have a happy and safe New Year, and as 2012 improves, so does my wish for your prosperity!

Posted in Uncategorized | No Comments »

30. December 2011 by Michael McFarlane.

As you faithful readers know, Encore Real Estate Services has assembled a team to help distressed homeowners (and now in two cases co-signers) who are having trouble making their mortgage payments.  That team, the Home Rescue Group has had very good success at getting loan modifications through.  They are not magic, it does require the home owner to participate.

Foreclosure counseling can increase one’s chances, double according to one recent study published by core Logic.  That article “Foreclosure counseling doubles the chance of mortgage modification” cites information gathered in surveys conducted by The Urban Institute on more than 800,000 households that received home loan modifications in the years 2008 & 2009.

That study nearly parallels what we have seen in our efforts to help our neighbors.  While it is no guarantee of success, all too many can attest to the results of NOT doing everything possible to help yourself.  While the funding had been pulled from these programs, it has been reinstated.

Not only reinstated, but INCREASED.  And the terms have made it possible for many that were previously excluded to now get the relief they so desperately need.  Owe more than your home is worth?  That is a pretty common scenario in today’s market.  The old program allowed a 15-25% deficit, but the new program ignores that number totally.  50% underwater?  Can do!

Questions about YOUR best action? Contact us today for your free, no obligation consultation. Call or text 530 315-2808. Email Taxes@EncoreRES.com(Encore Real Estate Services).

For ALL your real estate related needs and/or questions call or text ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates                     Free Home Warranty

              Search the MLS                     Over the Back Fence

Home Rescue Group                 Free Home Market Analysis

                     Yuba-Sutter Real Estate Today     

Posted in Finance | No Comments »

27. December 2011 by Michael McFarlane.

Posted in Uncategorized | No Comments »

24. December 2011 by Michael McFarlane.

I am sure you have heard about how NAR (the National Association of Realtors®) made a mistake in their calculations. The headlines NAR overestimated real estate sales by 14% have been splashed around a lot.  Funny how the bad news grabs so much press isn’t it?

I am not here to defend or condemn NAR’s mistake.  I do want to let you know however that according to reliable sources they have corrected the error in their formula and that it was in no way meant to mislead the public.  A brief article in the imanNews explains what happened and its correction.

That type mistake can not happen with the statistics we publish for you.  We do not use anyone else’s compilation of data.  Our information is taken directly from the MLS on an address by address basis.  Duplications will most likely not occur, and would be obvious if they did.  You can read our weekly stats on Over the Back Fence (click here or the link below).

If anything, our stats are a bit LOW!  That is because we do NOT include sales not recorded in our MLS.  Thess would include FSBOs (owner sold), homes sold by a Realtor® outside our MLS (Multiple Listing Service), foreclosures taken back by the bank or sold on the courthouse steps, among others.

While including these sales (as NAR tries to do) would make our numbers truer to reality, collecting that information in a timely manner, and/or checking its reliability is problematic.  We prefer to stay on the conservative side.  We like feeling confident in our statements knowing you rely on us.

Another bit of good news:  Key consumer confidence index up for fourth straight month.  This is from an article publish in today’s Los Angeles Times (read it here).  Talking to local store owners/managers it seems that our area is pretty much in step with this report.

Questions about YOUR best action? Contact us today for your free, no obligation consultation. Call or text 530 315-2808. Email Taxes@EncoreRES.com (Encore Real Estate Services).

For ALL your real estate related needs and/or questions call or text ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates            Free Home Warranty

         Search the MLS                   Over the Back Fence

Home Rescue Group Free                Home Market Analysis

                      Yuba-Sutter Real Estate Today

Posted in Real Estate Market | No Comments »

23. December 2011 by Michael McFarlane.

Great News!  It looks like the national scene is beginning to see what we have watched here for some time.  The big “news” guys at least are beginning to report that maybe the housing industry is not in a perpetual downward slide.  We are not circling the drain!

An article just published in the Washington Post (read it here) cites recent increases in new construction as one of their indicators.  Also getting credit are the stabilized prices and consistent sales level of resale homes.  The market seems to be on the mend according to them.

Those of you who read our reports regularly know that we have been reporting a much brighter picture than that presented by the “news” force in general.  Our market at least has been better than the doom and gloom that prevails in the national news scene.

Why the difference?  While I can’t answer for their reasoning, I can tell you that we try to give you the information that is HONEST, RELEVANT, AND LOCAL.  We are in the business and see first hand what is REALLY happening.  It is our opinion that you deserve the truth.

All is not rosy, but at least we are not walking through Death’s Door.  We have a long way to go, but we are going.  Part of the recovery is getting out of the Doom-&-Gloom state of mind.  Economic depression can be compared to personal depression it that if one dwells on the negative rather than working on the positive, things will continue to get worse.  Problems we have…Solutions we work on.

Questions about YOUR best action? Contact us today for your free, no obligation consultation. Call or text 530 315-2808. Email Taxes@EncoreRES.com (Encore Real Estate Services).

For ALL your real estate related needs and/or questions call or text ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates      Free Home Warranty

     Search the MLS               Over the Back Fence

           Home Rescue Group               Free Home Market Analysis

                     Yuba-Sutter Real Estate Today

Posted in Real Estate Market | No Comments »

17. December 2011 by Michael McFarlane.

Many, many loans are out there that have set to an interest rate much higher than what is currently available today.  While a lower interest rate can save thousands of dollars a year (we’ll get into the numbers later) many homeowners have been unable to refinance due to their equity (or lack of) in their home.  The banks don’t want to lend more than a home is worth (understandable).

To help this during the recent drop in home values, the Feds stepped in and guaranteed loans they insured with an LTV (Loan to Value) of 97 to 125%.  In simple English, that means that if your home is currently worth $100,000 and you owe $125,000, you can refinance if you qualify under the other (normal) criteria. 

Good news, right?  Unfortunately for many, with home values dropping as much as 40% in some areas and with the original loan being for 100% of the homes selling price, they still didn’t qualify.  Even homes with older loans but were refinanced to facilitate upgrades or maintenance also fall into this category.  Toss in an equity line of credit and the current LTV might be 160%!

The new program will now provide for these home owners.  Refinances are now available for people meeting the other normal criteria regardless of their LTV!  An article in today’s New York Times explains that more (to read it click here).

Why would one want to refinance?  Lowering your interest to today’s fantastically low rates can save you a bundle.  For some, this will even make the difference between staying in their home or being forced out.  Let’s assume your loan amount is $350,000.  With an interest rate of 9.75% (not uncommon) the monthly payment (principal and interest only) on a 30 year fixed rate loan is $3,007.04.  If we drop that interest rate down to today’s rate of 3.75% that same monthly payment in only $$1,620.91!  NEARLY 1/2!  Would that help your monthly budget?

And if you are still able to make that $3,000 payment?  Great! Refinance, then continue the payment amount and you will have your home paid for in just over 12 years.  FREE AND CLEAR IN 12 YEARS with the same payment as you are making today!

Like to look at other scenarios?  You are welcome to use the calculators on our web site (click here) or call or email us today with your questions.  We will get you on the path to that joy.

Questions about YOUR best action? Contact us today for your free, no obligation consultation. Call or text 530 315-2808. Email Taxes@EncoreRES.com (Encore Real Estate Services).

For ALL your real estate related needs and/or questions call or text ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates                  Free Home Warranty

                Search the MLS                                        Over the Back Fence

Home Rescue Group                  Free Home Market Analysis

                 Yuba-Sutter Real Estate Today

Posted in Finance | No Comments »