Here are some important details:

• Must have a  660 credit score or better
• Existing loan must be at least 6 months old
• No thirty-day late payments in past 12 months
• Lender will call wage earner’s employer for verbal verification of employment
• Self employed borrowers must provide copy of business license or prove existence of business
• All “other” income must be documented
• Borrower must have appropriate debt-to-income ratios

In some cases no appraisal is required- the original appraised value is used. Currently, interest rates are below 4.5% for borrowers with good credit. If you are paying 6% or more on your existing FHA loan, taking advantage of today’s rate could result in 25% of interest savings. A $200,000 loan at 6% interest is roughly $1,200/ month for principal and interest, not including taxes, insurance or mortgage insurance. At 4.5%, the payment would be $1,013. If the loan refinance fees were about $2,500, you would break even in about 14 months, then save about $183/month thereafter. 

For more particulars regarding an FHA refinance, contact Wayne Barni of Choice Funding at 530-224-6707.

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL REAL ESTATE EXPERIENCE

• Values assigned without taking into consideration features and upgrades of the subject property. Sometimes the value price range is $20,000-$40,000 more or less than the actual value of the home.
• Even homes of the same size and in the same neighborhood can vary in price due to quality and feature differences. Utilizing the services of a local REALTOR helps minimize inaccuracies plus their service is free.
• Websites like Zillow, Cyberhomes and Eppraisal.com can educate homeowners and buyers by providing a reasonable estimate of value, however, working with a local REALTOR is still the best option.

I have worked with buyers and sellers that used Zillow to check values but I too have found wild inaccuracies. Instead of averaging values to reach a cost per square foot and applying it to the property in question, REALTORS will adjust for differences including age, lot size, garage size, swimming pools, landscaping, views, condition and upgrades. I’ve heard stories of sellers relying on a Zestimate to sell their own home leaving thousands of dollars on the table because the value was too low. Others didn’t accept a reasonable offer because the Zestimate was too high relative to an offer in hand.  Don’t trust a free web appraisal to decide on a sale or purchase price. You could get burned!!

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL SALES EXPERIENCE

• All information is available in English and Spanish
• Video explanations detailing what each site tab might accomplish
• Contact information for mortgage companies and loan counselors
• Calculators to help determine if a borrower is eligible for assistance
• Information on foreclosure alternatives such as short sales or Deed in Lieu of Foreclosure

The news release from the California Association of Realtors also recommends another helpful site www.homeloanport.com for consumers and loan counselors to submit financial documents to mortgage companies. This site also tracks the consumers efforts to avoid foreclosure which could be helpful when considering the various foreclosure alternatives.

Please feel free to contact me with specific questions. I’m here to help!!

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE

• The loan to be refinanced can not be an FHA loan
• The homeowner must be current on their mortgage payments
• Must have a credit score of 500 or higher
• Must be the borrowers primary residence
• Existing lender must agree to write off at least 10% of the loan balance  bringing the total loan-to-value ratio to no greater than 115% of fair market value

The first step for borrowers wishing to take advantage of this program would be to contact their existing lender(s) and see if they are willing to write off at least 10% of the unpaid principal balance. If so, contact a local FHA lender for more information.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL SALES EXPERIENCE

The number of active homes for sale on the Shasta MLS for all areas of Shasta County sits at 1635 today, up from 1526 a year ago. There are 443 homes in escrow compared to 500 last August at this time. Of those pending sales, 140 are bank-owned and 119 are short sales. That works out to 58% of the pending sales being distressed properties-REO’s or short sales. Last year, 40% were distress sales.

The number of REO’s  listed for sale has risen steadily from 160 the first of this year to 229 today. 1200 homes have closed year-to-date, slightly more than a year ago at this time. The Federal and State tax credits pumped up sales in the spring but have expired now leaving the market to find its own way during these difficult economic times. Record low interest rates have not motivated buyers timing their entry into the marketplace. Home equity loss due to declining values has prevented many homeowners wishing to take advantage of these rates from refinancing.  

Markets elsewhere in California, specifically the coastal areas, have stabilized or experienced year-over-year double-digit appreciation noted in some areas such as San Jose. Redding is suffering under higher than average unemployment and loss of equity refugee buyers from nearby metro areas. One positive note for July is the sale and closing of 5 riverfront properties from Redding to Anderson between $405,000- $537,500!

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE

According to an article published recently in THE WALL STREET JOURNAL,many websites have sprung up to assist home buyers rate a property’s walkability. One such site, www.WalkScore.com allows users to enter a property address and receive a score from 0-100 pegging the walkability of the neighborhood. The scale goes from “car dependant” to “walkers paradise”.

Redding is slowly catching up to this trend with recent zoning changes that allow mixed uses for downtown area parcels. The new Kobe’s Steakhouse location is one example of allowing restaurant,offices and residential units under one roof. Unfortunately, Redding planners for decades preferred island subdivisions away from retail and commercial areas. Most Redding residents must hop in their car to go grocery shopping, take in a movie or eat out. Urban sprawl has been the norm as Redding sought to expand the city limits to gain additional land for development. In recent times, our city officials have experienced the financial pain of extending utilities, maintaining  streets and providing  police and fire protection to those furthest from the city’s core.

There is mounting evidence that housing prices are higher for properties within walking distance of amenities.One such study was published by the non-profit group CEOs for Cities. For each one point increase in a Walk Score values increased by as much as $3,000!

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE 

Cal Tax cited the following new tax proposals as proof local officials are cooking up new revenue schemes:

• San Fransisco Supervisors are considering a tax on commercial rents, a parking tax and an increase in the property transfer tax
• Santa Rosa is pondering an extension of the utility user’s tax to cell phones and asking area hoteliers to add 3% to the bed tax
• Los Angeles is considering a parcel tax to help fund the libraries, despite the failure just days ago of a tax measure to help schools

Redding has kicked around the idea of placing a sales tax hike on the ballot in recent times. I suspect Northstate residents would vote down any new tax regardless of the intended usage of those revenues.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE

Anyone observing gang activity is asked to contact Sergeant Bruce Bonner at 225-4294 or Sergeant Jeff Wallace at 225-4297. I believe the citizens can aid the city by reporting suspected gang activity. Here are some facts about the gangs in question:

Nortenos

• use the number 14 for the 14th letter of the alphabet “N” for north
• controlled by the Nuestra Family prison gang
• gang attire includes red shirts, pants, boxers ,shoes, shoelaces, bandanas, hats, etc.
• call rival Surenos gang members “Scrap”

Surenos

• use the number 13 for the 13th letter “M” which stands for Mexican Mafia 
• The Mexican Mafia is the prison gang that controls all Sureno street gangs
• gang attire includes blue shirts, pants, boxers, shoes, shoelaces, bandanas, hats, etc.
• call rival Nortenos gang members “Buster”

More resources have been assigned to this problem according to City Manager Kurt Starman and Police Chief Peter Hansen. They hope to squelch these gangs quickly before they get a foothold in the Redding area. Let’s all help the city in their efforts to stamp out these gangsters!

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE

He also believes insurance agencies that rated these new financial instruments failed to accurately assess the riskiness of these investments. Cisneros addressed a group of real estate editors recently in Austin, Texas. However, he did place some blame on government’s unwillingness to regulate risky financial instruments  during the Clinton and Bush Administrations.  

Many have blamed the government for policies designed to increase homeownership among minorities for causing the housing bubble. Few would disagree that Fannie Mae and Freddie Mac facilitated the crisis by buying, repackaging and selling mortgage-backed securities that fell short of previous standards. Whistle-blowers at Fannie Mae alerted superiors that loans being presented by banks for purchase were not underwritten to their standards.

I believe there is plenty of blame to go around. If any of the players necessary to create this fiasco would have done their job, this crisis would have been averted. Overzealous lenders, Wall Street investment bankers, insurance companies and government regulators all failed to protect the integrity of time tested policies designed to prevent just such a tragedy. Unfortunately, few will be punished leaving them to enjoy their millions in profits as long as they live in this world.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL REAL ESTATE SALES EXPERIENCE

Inventory of available homes on the Shasta Multiple listing service is 1552 today, up from early January’s low of 1301. Pending home sales sit at 467 today, down from the peak of 529 the first week of May. This is likely due to the rush to buy before federal tax credits expired at the end of April. Closed sales for residential properties in 2010 total 824 units thus far.

Nearly 200 homes listed for sale are bank-owned homes, an all-time high for this market cycle. Another 248 homeowners are short sales or pre-foreclosure homes. 141 bank-owned properties are in escrow. 137 short sale listings are also in escrow. These two categories of distress sales represent 60% of the pending sales activity but less than 30% of the active listings.

Shasta County is still experiencing a high number of properties working their way through the foreclosure process. Unemployment is dropping slightly but remains nearly double the national average. Mortgage rates dropped unexpectedly due to European financial turmoil causing investors to move money into US securities.  The 30-year fixed rate is around 4.75%!

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL SALES EXPERIENCE