Buzz About Redding

Efforts To Streamline Short Sale Process Underway

Brad Garbutt — Fri, 12 Mar 2010 13:31:41 +0000

Lenders, loan servicing companies and homeowners have been fighting over how to deal with mortgages that are underwater. According to a recent article in the New York Times “more than 5 million households are behind in their mortgages and risk foreclosure”. The Obama administration has targeted billions for loan modification programs that have helped very few.

A new program to be launched April 5 will attempt to help homeowners unload their homes using the short sale process. The program aims to streamline and standardize the process by establishing some ground rules for determining who gets how much. The benefits this program is intended to create include:

More net proceeds to the investor doing a short sale than a foreclosure
Set amount of cash for the loan servicer ($1,000)
A predetermined amount for second lienholders, if any ($1,000)
Less damage to the home owner’s credit rating
Relocation money for the homeowner ($1,500)
Assurance from lender the homeowner will not be sued for any dollar deficiency
Fewer empty homes waiting to be foreclosed upon

Real estate agents would be used to establish the home’s current fair market value. This value estimate would not be shared with the homeowner but if an offer meets or exceeds the indicated value, the lender must accept the offer. Lenders want proof the homeowner has done everything possible to keep the home including trying to sell the home or utilized available savings to make payments.

Those of us that have handled short sales know how frustrating the process can be for homeowners, title companies, lenders and loan servicing companies. Some are easy to work with while others have made the process very difficult and time consuming. It’s not unusal to have the first couple of buyers fall by the wayside before the investor wakes up and agrees to a short sale. Any help by the federal government to regulate the process is welcomed by real estate professionals.

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

Limited Time – Over $650 off House Payments

Bob Sparks — Thu, 11 Mar 2010 17:36:24 +0000

Imagine getting a discount of over $650 a month off your house payment for a full year. Thats over half the house payment on a typical FHA purchase of a $175,000 home!

You’re probably asking “where do I sign up?”. Well, right here. First time buyers who put a home in escrow by April 30, 2010 and close escrow by June 30, 2010 are eligible for this great program. As you may have guessed by now, I’m talking about the $8,000 tax credit being offered to first time buyers. Do the math, $8,000 divided by 12 works out to just about $667. That’s $667 that you can use for an entire year towards your house payments.

There are plenty of reasons that now is the time to buy. This is the reason that RIGHT now is the time to buy. In order to help you keep track of days left to take advantage I put a countdown calendar on the right side of this page. You’re on the clock, call me to get started.

Confusion Surrounds Curbside Recycling Program

Brad Garbutt — Thu, 11 Mar 2010 10:43:41 +0000

Since 2001, Redding residents have been provided blue carts to replace the bins previously used to separate glass, paper and plastic. The “single stream” method allows residents to throw everything in one bin for sorting at the city’s transfer station. However, despite the many years this program has been in place, between a third and one half of items tossed in the recycling cart are non-recyclable.

This week I was headed home from work and noticed all the blue bins left curbside for pickup were empty except one. My neighbor had a large plastic trash bag on top of their full bin preventing the lid from closing. I suspect the driver spotted this non-recyclable item and decided it was filled with items deemed contaminants. The bin was not emptied and likely a form letter was left explaining which items were inappropriately placed in the bin.

This is a common problem, even in our home. My wife and I debate what items should and should not be placed in the cart. I find myself regularly removing items tossed in the blue bin knowing it is not on the list of items that should be placed in the cart. The sticker on the lid detailing what should and should not be recycled peeled away years ago.

The City of Redding’s website has a complete list and explanations of items accepted and common items that should not be placed in the bin. The following link will take you to that page:

Here are some items on the no-no list: http://www.ci.redding.ca.us/solwaste/recyclingrules.htm

Plastic bags-including trash bags, shopping bags and the blue bag the newspaper comes in
Styrofoam-including cups,egg containers and packaging materials
Waxed cardboard-including milk and juice cartons
Aerosol cans
Shredded paper-it clogs the sorting machine
Wire, rope and chain
Wrapping paper and cards if they contain metallic printing or lining

Most plastics with numbers 1 & 2 are accepted as long as the mouth is narrower than the base. Other items accepted include:

Glass bottles and jars, aluminum and tin cans
Newspaper and paper egg cartons
Junk mail and catalogs
Cardboard and pasteboard boxes-broken down and plastic liners removed

The drivers also request the various collection carts be positioned at least three feet apart to allow the automated trucks to empty the cans.

The city has tried to make recycling as easy as possible so let’s all help make their jobs easier by educating ourselves regarding what should and shouldn’t be placed in the blue bin.

bradgreps@yahoo.com

530-941-7492 or 530-224-6767

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL LIVING REAL ESTATE PROFESSIONALS

CORNER OF COURT AND PLACER IN REDDING

MORE THAN 25 YEARS LOCAL SALES EXPERIENCE

Census Tract Search

Bob Sparks — Wed, 10 Mar 2010 19:09:02 +0000

I just added a link labeled Census Search to my online real estate guide. It’s a great tool for determining the census tract of REO homes for sale as is required by the C4HAP (NSP) guidelines. The search also shows school districts, Congressional and State Legislative districts and has a handy mapping feature.

The link is located on the left sidebar just below slide show of homes. Use it with the REO Homes search for C4HAP or just to get more information on any home for sale.

Redding/Shasta County Real Estate Market Update

Brad Garbutt — Wed, 10 Mar 2010 11:22:55 +0000

Distress sales continue to represent a significant number of homes selling in today’s market. The second week of March was marked with 465 homes pending. Of these, 133 are bank-owned homes and 157 are short sales or 41% of all homes under contract. These same two segments of the market only account for 31% of the 1379 active listings.

February saw 131 homes sold. 85% were listed for $300,000 or less. More than a third of the homes sold were priced under $150,000. Ten more homes sold this February than a year ago. The number of bank-owned properties listed for sale has doubled from a year ago.

Home prices continue to slide downward as noted by a local real estate appraiser. The last quarter of 2009 saw the average cost per square foot of homes in all areas served by the Shasta MLS drop from $122.75 to $114.86. On the positive side, prices for new homes actually increased to $158.29/square foot from $147.72. However, there have been far fewer new homes sold year-to-date than the last quarter of 2009. Homes more than 5 years old in Redding sold on average for $125 the end of 2009 and for $120 thus far this year.

The area price declines can be pegged to continuing high numbers of homes in various stages of foreclosure due to high unemployment and sharp price declines after the housing market bubble burst. Banks seem to be in no hurry to clear their books of overvalued assets which prevents steeper declines in prices in the near term but prolongs the overall recovery of the housing sector.

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

Energy Efficient Mortgage Program Discussed

Brad Garbutt — Tue, 09 Mar 2010 09:47:54 +0000

Jonathon Bell, mortgage banker with US Lending in Redding, briefed Realtors on a loan program that allows home buyers to secure a loan to buy and upgrade a home simultaneously using an Energy Efficient Mortgage (EEM). The investor for the loan allows the borrower to add funds into the loan to complete energy efficient retrofits. Most homes built prior to 1994 will qualify.

The concept allows the home buyer to borrow slightly more than they might otherwise qualify for because the higher payment will be offset by lower utility bills. The borrower must pay for a home energy audit using a local HERS (Home Energy Rating System) auditor at a cost of about $350. A report will be produced detailing which energy efficient improvements qualify for the loan program. Monthly energy savings must exceed the additional mortgage payment costs.

Common items covered include windows, HVAC systems, insulation and weatherization of doors, windows, pipes and walls. Water heaters and energy efficient appliances may also be candidates for replacement. Once the buyer selects the items to be upgraded, the loan amount is adjusted to cover the labor and material costs, the loan is closed and funds are held to pay contractors upon completion of the work.

Other benefits to an EEM may include:

Federal Tax Rebates
City Utility Rebates
P,G&E rebates

Check with your tax preparer and utility providers for specific programs and rebates. Homes to be built may qualify for an EEM if additional upgrades are desired above current building codes.

For more information, call Jonathon at 530-356-8658.

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

Nigerian Scams Target Redding Renters

Brad Garbutt — Mon, 08 Mar 2010 12:00:37 +0000

I walked into the office this morning to a note from our receptionist from a woman who wanted more information about the home for rent in Stanford Hills. The woman was told the owner had to leave in a hurry for South Africa and wanted to rent the luxury home at a bargain rate. The woman was instructed to wire funds and upon receipt by the owner the keys would be in the mail.

Only one problem here-the home is for sale, not for rent. The owner still occupies the home and knows nothing about it being for rent. Fortunately, this renter knocked on the door and was informed of these facts before any money changed hands. Now knowing it was a scam, she emailed the fellow from Nigeria saying she wanted the rental and just needed to know where to send the money. He quickly provided the instructions which were handed over to local law enforcement authorities.

For unknown reasons, Nigerians have targeted renters in our area. They first peruse the homes for sale on Craigslist, cut and paste photos and property details to a Home For Rent ad and re-post to Craigslist. They typically select an upscale home then attach a below market rent hoping to make the rental look like a bargain. The better they make the deal look, the more likely someone will sight unseen send money for keys before waking up to the fact they have just been scammed.

Anyone coming across a suspicious ad should:

Ask for a personal showing of the property for rent. If the owner can’t make it, ask that someone else show you the home. If this can’t be done, a big “red flag” should go up.
If the home is occupied, knock on the door and explain you heard the home was for rent. The occupant should be able to tell you if it is a ruse or not.
If the home is vacant, call a local real estate agent to see if it is listed for sale or lease. You can also ask the agent to confirm the legal owner’s name and address, which all local agents have access to.
Do not send money to anyone without a signed rental agreement and keys in hand. This should take place at the property to be rented.
Call the Shasta County real estate fraud unit at 530-245-6350 with details of suspected scams.

I find it amazing that these con artists can pull this off. Are Americans that gullible? The old adage-if it sounds too good to be true, it’s not true-certainly applies here!

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 EXPERIENCE

Inability To Make Mortgage Payments Tops Reasons To Sell

Brad Garbutt — Mon, 08 Mar 2010 10:23:13 +0000

A recent survey of California home sellers found that the biggest reason cited for putting their home up for sale was difficulty meeting the monthly mortgage obligations. Two thirds of sellers surveyed sold their home due to financial challenges caused by job loss or increases in their mortgage payment.

Complicating factors included an inability to refinance due to declining property values and tighter loan underwriting standards. Homeowners usually explore all their options including refinance as a way to keep their home. Loan modification, short sale, deed in lieu of foreclosure and deed-leaseback are potential options available to sellers who do not want to lose their home to foreclosure.

Other findings of the survey include:

99% of sellers chose to work with a Realtor
72% cited the agent’s ability to get a higher price as the primary reason they used a Realtor
Homes sold on average $20,958 less than the listed price
First-time sellers accounted for 44% of all sellers-a 33% increase from 2008
Job loss was cited by 18% of sellers as the reasoning for listing their home for sale
Nearly three-fourths of sellers expressed concerns whether a buyer could secure a loan
63% of sellers lost a sale with 70% of those failed escrows due to buyer inability to get an acceptable mortgage
26% of buyers had buyer’s remorse and canceled the sale
50% stated the sale did not close on time

This year may see an improvement in some of these numbers as prices stabilize and fewer homes begin the foreclosure process across portions of the state. Unemployment rates will need to drop before a housing recovery can get a foot-hold here in the Redding/Shasta County area.

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

HUD Website Allows Consumers To Report Mortgage Scams

Brad Garbutt — Fri, 05 Mar 2010 10:42:47 +0000

The California Association of Realtors announced a new HUD website where consumers can turn in loan modification scam artists. Numerous scams have become prevalent as more and more Americans find themselves facing foreclosure. Laws have been enacted making the collection of advance fees for promised loan modification services illegal. The latest twist is companies promising to do a “forensic audit” of the homeowner’s mortgage in attempts to uncover fraud. The typical fee to conduct such an audit usually exceeds $3,000. However there is no guarantee of success and some borrowers have reported getting nothing in return for the large advance fee tendered.

To access this website, click here: http://www.preventloanscams.org/

Anyone considering a loan modification should first contact their lender at the customer service department listed on their mortgage statement. If you need assistance negotiating with your lender, contact a non-profit credit counseling agency. The HUD website has links to approved free and low-cost credit counseling agencies.

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

Why Is SoCal Wasting Our Water?

Brad Garbutt — Wed, 03 Mar 2010 11:53:08 +0000

According to a recent AP article, the City of Orange in Southern California is pursuing legal action against a city resident for replacing his lawn with drought-tolerant plants. City code requires 40% of the yard be covered with live plants.

Quan Ha replaced his grass with wood chips in 2008. He and his wife contend they are saving hundreds of thousands of gallons of water by replacing their lawn. They also point out other city residents are being fined for over-watering their lawns. The Has have pleaded not guilty.

This should be a very interesting court case. Many Redding subdivisions have similar requirements but the city does not impose or enforce these rules. Developers, intent on controlling the curb appeal of their developments, place landscaping requirements in the C,C&R’s (Covenants, Conditions and Restrictions).

The West Redding sudivision where I live specifies every front yard must have a minimum of 1000 square feet of grass. Many of my neighbors have removed their lawns in favor of bark, shrubs and/or rocks. My home has never had a blade of grass planted since it was built 24 years ago. Imagine all the water, fertilizer, weed killer and air pollution from mowers and edgers not wasted maintaining a patch of green. Thankfully, nobody has forced the issue for my neighbors or myself to comply with the C,C&R’s.

California should consider sweeping legislation banning any mandates for lawn or plant cover installation for any homes. Replace these laws with requirements for drought tolerant xeric plants adapted to the local climate. This would go a long way toward reaching our goals of water conservation, reducing air and water pollution and freeing up finite water supplies to irrigate farmland in the Central Valley where half of this nation’s produce is grown.

In stark contrast to the City of Orange, Roseville started a cash for grass program a couple years back that paid homeowners $1 for every square foot of lawn replaced with drought tolerant plants. This is the direction the entire state should go unless those opposed to dam building or fish preservation want to abandon their agendas so Californians can continue to water their thirsty lawns.

Is it asking too much of our neighbors to the south to use water imported from the Northstate prudently? Does it make sense to deny farmers water so the LA basin can look green? I think not!

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 EXPERIENCE