Eva Bradley's Blog

According to a recent survey one in every seven homeowners is currently not making their mortgage payments for one reason or another.  In case you are one of the troubled homeowners I want you to know that you have options, and Realty World Corral Hollow agents like me are here to help you find solutions that are available to you.

Realty World Corral Hollow agents have always been actively involved in helping the community throughout the years and I am proud to be one of them.  We care about our clients and we care about the community.

In these troubling times, Corral Hollow agents are available for you to educate you and to give you directions as to what would be the best option for your individual situation. A confidential, personal consultation does not cost any money and if you get nothing else out of it, just knowing that there is someone you can trust and talk to, will make you feel better and it will be well worth it.

Being agents at Realty World Corral Hollow, our ongoing education allows us to stay informed of the newest laws, rules and regulations that would affect your situation as a homeowner.

For most of us, our biggest investment in our lives is our home.  And it is worth every effort to fight for it.  As your realtor, I would stand and fight with you, until we can reach a reasonable solution.  Even if you are one day away from foreclosure, there is still time to act. 

I urge you to pick up the phone and call me or any Corral Hollow agent to find out about your options. 

I think the following article gives a very detailed explanation on the question what happened to all those homes that are sitting vacant and are causing the deterioration of neighborhoods and inviting crimes:

http://blog.firsttuesdayjournal.com/?p=2331

Please read and feel free to comment.

   Real Estate Updates – Newsletter for January, 2010

Market conditions for 2009

Looking at the year end statistics for Tracy, including the surrounding country area, 2009 wasn’t a bad year for the local real estate market at all, considering the status of real estate market nationally.

Following are the statistics for the month of December, 2009:

•  Actively listed properties: 208 -  This slightly higher than it was in November (182)
•   Homes with “Pending” status for the last week of December:25  - This is just a bit lower than it was for the same period in November (27) and mostly do to the holidays.
•  Number of homes “Sold” in the month of December: 148  – This is a 25% increase compared to the previous month!!! (111) Huge increase! … . Maybe do to the $8,000 Home Buyers’ Tax credit extension? ….
•  The Average Days on the market of the Sold Properties: 62  - This is an increase from the previous month (34)…almost doubled!

 The charts below reflecting these numbers as well:

The statistical report for the year of 2009 is also showing some stabilization: it looks much better in comparison to the past few years. Inventory of available homes was much lower, barely enough to satisfy the huge demand. Sales prices are showing a slight improvement as well. An average, 59% of all homes sold in 2009, where actively marketed for less than 30 days.

•  In 2009 the number of homes sold: 1958
•  Average Sales price: $225,260
•  Average days on the market before selling: 48
•  Listing Price v. sales Price : 101% (homes were sold 1% higher than the asking price)

The average sales prices of Sold homes have increased slightly towards the end of 2009.

If you would like to have more detailed statistics or for other areas of the Central Valley real estate market, please feel free to call or email me – I would be glad to provide it for you.

A prosperous, happy, healthy New Year to you all!

The Cost Of Your Mortgage Loan

The same care and consideration you give to finding the right house should be applied to your search for the right mortgage lender. For most home-buyers a major determining factor in selecting a lender is the cost of the mortgage loan.

But how do you determine the cost of a mortgage loan?

Shopping for a Mortgage Loan

While most buyers concentrate on interest rates, it is best to look at all the costs associated with a mortgage loan. Mortgage loans include the quoted interest rate, points and closing costs.

But how do you determine the cost of a mortgage loan?

Shopping for a Mortgage Loan

While most buyers concentrate on interest rates, it is best to look at all the costs associated with a mortgage loan. Mortgage loans include the quoted interest rate, points and closing costs.

More than Just Interest

A number of fees are associated with the mortgage loan, including:

• Appraisal - A carefully documented opinion of value by a licensed, professional appraiser.
• Credit Report – A detailed report of your credit, employment and residence history prepared by a credit bureau.
• Principal – The amount owed on a mortgage which does not include interest or other fees.
• Document Fees, Loan Fees and Processing Fees – Miscellaneous fees charged by the lender.
• Discount Points – Points paid in addition to the loan origination fee to get a lower interest rate. (1 point = 1 percent of loan amount)
• Origination Points – the total number of points paid by the borrower at closing. (1 point = 1 percent of loan amount)

Interest Rate – A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning fund

Using the Annual Percentage Rate (APR) to Compare Mortgage Loans

The APR was designed to help borrowers understand the relative costs of a mortgage loan. The APR takes into account the various fees associated with the loan, which is why it is often higher than the interest rate. Understand that not all lenders calculate a loan’s APR in the same way. That is why this should be only one of the factors used in selecting the best mortgage for you.

Locking-in Interest Rates

Another factor to consider when selecting a lender is whether the lender will lock-in the mortgage’s interest rate and points. Click here to learn more about lock-in options.

Read here about “Mortgage Saving Tips“

Mello-Roos Taxes

Mello-Roos taxes are assessed to special tax districts, known as Mello-Roos Districts or Community Facilities Districts, for the purpose of financing public services and/or facilities including streets, police protection, fire protection, elementary schools, parks, libraries, museums, and cultural facilities.

California State Senator Henry Mello and Assemblyman Mike Roos spearheaded the successful passage of the Mello-Roos Community Facilities District Act in 1982. The Act passed in response to Proposition 13 (enacted in 1978), which limited the ability of local governments and developers to finance new projects.

Mello Roos District
The Mello-Roos act authorized any county, city, special district, school district or joint powers of authority to create a Mello Roos District with approval of a two-thirds margin of qualified voters in the district.

Property Owners
The Mello Roos District can issue bonds to pay for public improvements. The district’s property owners are responsible for payment of a “special tax” to repay these bonds. The act allows for considerable flexibility on how the special tax is calculated. The calculation often takes into account property characteristics such as square footage of the home and parcel size. Typically, the tax is included with your general property tax bill.

Time Limit
The special Mello-Roos tax stays in effect as long as needed to repay the principal and interest on the special bond along with any reasonable administrative costs. The Mello Roos tax may not stay in effect for a period longer than 40 years.

Property Sale
An increased value of the property does not affect the amount of the tax when property is sold.

Where in Tracy?   Homes built before 1982 are free of Mello Ross Taxes. In newer areas of Tracy a couple of home builders paid all Mello Ross taxes in advance, so homeowners don’t have to worry about it.  Please feel free to contact me if you would like to know which areas in Tracy are without Mello Ross taxes.                                                                     

In my opinion, this is a step in the right direction, taken by Fannie Mae.  I can only hope that other lenders will follow this.  It will help homeowners to stay in their homes after the foreclosure and at the same time it will stabilize neighborhoods and keep homes in better shape.

Read the full story here: http://bit.ly/bxVq9

Check out my November Newsletter; it contains many real estate related, useful information and good housekeeping tips. Please feel free to comment on the issues, or ask questions.

I came across this article in the newsletter I receive  from First Tuesday, and I think it is worth to be shared.  Please read it carefully, as it does clarify some of the aspects of the whole foreclosure process and different types of it:

http://blog.firsttuesdayjournal.com/?p=1833

Tracy Real Estate market is waiting for the “shadow inventory “, a release of some of the already foreclosed homes.  As of today, November 3rd, there are 189 active homes for sale in Tracy and surrounding areas.  That is a combined number of REO”s, “normal” and short sale listings. 

In Tracy and surrounding areas we have sold 139 homes in the Month of October.  These sold homes were an average of 43 days on the market before selling.  The average listing price was $236,718 and the average sales price was $243,393.  As we see multiple offers on many of the homes listed, the offers coming in were over the asking price. 

As most homes are selling for more than they were listed for, it seems that the appraisers have their hands full with appraising the homes for the value. This is mostly do to the fact that the appraisers’ evaluation is based on homes that have been sold recently in the same neighborhood.  Many deals fell through because the value could not be justified by the recent sales on record.  As a result, many buyers are asked to pay out of pocket to make up the difference. 

Those buyers, who have been qualified for an FHA loan, have little chance to a fair shot to get an acceptance on their offer.  Many buyers are coming in with cash at hand.  Others are frustrated with this market and giving up on buying all together.  In general, this is a buyers market, home prices are favorable, interest rates are still low, many people who are ready to buy homes…. but we don’t have enough homes to sell. Go figure.

Click here to see a daily interest rate lock advisory.

How to Reduce Your Mortgage

One Additional Mortgage Payment a Year

There’s a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan’s principal.

This is the method being used by “Bi-Weekly Mortgage Reduction Services” and “Bi-Weekly Mortgage Savings Programs“. Only, when you do it yourself, you don’t pay a third party unnecessary set-up costs and fees!

Example: $100,000 loan, 30-year mortgage, 6.5% fixed interest rate

 One-time Payment

It may not be possible for you to increase your monthly mortgage payment. Keep in mind that most mortgages will permit you to make additional payments to your principal at anytime. Perhaps, five-years after moving into your home you receive a larger than expected tax return, or an inheritance or a non-taxable cash gift.  You could apply this money toward your loan’s principal, resulting in significant savings and a shorter loan period.

Example:

With a $100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will pay a total of $227,542.98 to pay back the loan in 30 years. That equals $127,542.98 in interest payments.

If the same borrower makes a one-time $5,000 payment the first day of year 6, he/she will pay a total of $204,710.75 and pay off the loan in 27 years (324 months). That’s a savings of $22,832.23 in interest.