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     

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27. December 2011 by Michael McFarlane.

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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

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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

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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

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13. December 2011 by Michael McFarlane.

Want to keep up with what is really going on in the real estate market?  For a look at the actual stats for last week click on over to Over the Back Fence.

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10. December 2011 by Michael McFarlane.

Thank you for returning for part 2.  And for those of you that didn’t catch it, part 1 was posted last Wednesday and can be read below today’s post. 

Our last session ended with the questions about how this shadow inventory affects real estate and more specifically, how it concerns us locally. 

Well…our area has one of the highest foreclosure communities in the state (country?).  Yet we are still selling homes.  Not just REOs and short sales either.  Current inventory shows about 49% of our listings are Equity Listings.  This number has remained consistent for some time now.  For more stats click on over to Over the Back Fence.  

That shadow inventory; yes, we know there is some, maybe even a lot.  But we also think the banks will continue to control themselves and feed them into the market at a rate that helps sustain the market.  We see the prices remaining a bit low as the banks now dictate selling prices according to their inventory costs as opposed to the normal construction cost.  The Supply and Demand portion of the equation still applies. 

So why buy now?  Interest rates are fantastic!  Right now an investor can purchase a home in this area and have a 300% positive cash flow from month 1!  Or, if you are buying for yourself, you can quickly rebuild the cash reserve that you used for your down payment.  Want to help the kids get started on their own home?  Now is the time! 

And these interest rates will not remain at this super low percentage forever.  In fact, we believe that when the government stops pumping money into the system the banks will HAVE to RAISE their rates just to break even.

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 Buying a Home, Real Estate Market | No Comments »

8. December 2011 by Michael McFarlane.

You may have heard that the “shadow inventory” is going to destroy our market.  Just what is this shadow inventory?  How does it affect the real estate market and the economy in general?  Do we really need to be alarmed?  All very good questions; and for the answers look no further…we will try to dispel the myths right here! 

First of all, just what is the “shadow Inventory”?  This term refers to homes that the bank has not yet foreclosed upon but foreclosure is the expected outcome.  This group includes homes where foreclosure proceedings may have started (have received a NOD or Notice of Default), as well as homes where payments are not being made (for whatever reason) but have not yet been filed upon. 

Secondly, how does it affect the Real Estate market?  Real Estate pricing works just like any other marketable item.  The value is what someone is willing to pay for it.  The term “supply and demand” applies to property as well as any item sold in the open market.  If there is more of something (supply) than there is a need for it (demand) the price goes down. 

We must also consider desirability.  The harder something is to obtain, the more we value it over that which is readily available, even if the two are otherwise comparable.  However, the mare existence of something does not mean that it is available.  Example: if I own 10 of something and you want one, the supply is higher than the demand.  But, if I refuse to sell the item you want the value goes up. 

How does this come into play in real estate?  And how is it affecting us locally?  Stay tuned for part II to be posted later this week.

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

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