Home Buyer Tax Credit Extension - Sacramento Buyers Take Note!!

If you follow me on Twitter, you will already know that I re-tweeted a post yesterday regarding the US Senate's approval to extend the federal First Time Buyer Tax Credit (beyond its November 30, 2009 expiration date) through 2010, and actually modify it to include other (non-first time) buyers as well.

LET ME CLARIFY. THIS IS NOT A DONE DEAL.

Senate's approval is clearly an important step, however it still must be approved by the US House of Representatives, and signed by President Obama.

Please continue to call your members of Congress to let them know of your support for this bill. I will certainly post more on this as the pieces fall in to place.

Renovation Home Purchase Financing Options

As it relates to property condition, most conventional lending standards require that certain electrical, plumbing, mechanical, and structural systems be in a safe and reasonably operable condition to qualify for a mortgage loan. For example, a buyer may not be able to get a conventional loan on a home where the bathroom has been completely demolished, where the electrical wiring has been completely stripped from the home, or the central heating and air conditioning units have been removed. The lender will require those items to be repaired prior to the close of escrow.

There are certain types of purchase "renovation" loan programs buyers can obtain that will allow you to purchase a home this condition though. You might ask your loan officer about the FHA Streamline 203K loan. With this loan, you can potentially purchase a home that needs non-structural improvement, and borrow more than the actual purchase price of the home in order to complete these renovations after the close of escrow. With a loan like this, you could potentially purchase a home with a demolished bathroom or kitchen. Of course the house does not have to be half demolished to use this loan - you can cosmetically upgade a dated house as well.

Once your offer is accepted on a home, you will have to obtain detailed contractor bids and additional inspections to comply with the loan underwriting procedures. Once escrow has closed, work must be completed within a certain period of time, and funds are disbursed by the escrow holder once work is successfully completed.

If you happen to find a property that is not in complete need of this type of comprehensive renovation, you might also look to a program like the Energy Efficient Mortgage (commonly referred to as the EEM). Again, with this program you would borrow a bit more than the actual purchase price ofthe property, but these funds are used toward energy efficient upgrades (such as new dual pane windows, insulation, etc.).

Strategize with your Realtor and loan officer how best to use these programs.

New Listing - 3737 William Way, Sacramento / Arden, CA 95821

Adorable Arden 3 bedroom, 1 bath, 1,225sf cottage! You will love the gleaming wood floors, cozy fireplace, updated kitchen has double oven, dishwasher, and cooktop, spacious bedrooms, covered patio, attached 2-car garage, and large backyard! Don't miss this one! Offered at $165,000, subject to lender approval of short sale. For more photos and information, please visit http://www.3737WilliamWay.com!

New Listing - 6712 Goldenwood Circle, Sacramento 95841

Lovingly maintained 4 bed, 2 bath, 1,766sf Sacramento home has something for everyone - separate living and family rooms, updated kitchen with newer appliances, vaulted ceilings, 2-car garage with lots of storage. Stunning backyard with new retaining wall, sod, irrigation, lighting and more! Composition roof, located close to large park! Must see-don't wait! Offered at $219,000 subject to lender approval of short sale. For more photos and detail, visit http://6712goldenwoodcircle.com/.

Sacramento County Property Tax Bills Issued this Week...

Welp, Sacramento County property tax bills were issued this week...the Sacramento County Assessor's Office put out a press release today stating that over 170,000 of the bills issued reflect reductions in the assessed value.

The Assessor's office is still entertaining applications to appeal the assessed value of your home until November 30th. Remember, the bills that just came out reflect an assessment based on the value of your home back in January 2009 (9 months ago!).

To read up on what is required to submit an appeal application, click here.

Schwarzenegger approves legislation to protect California home buyers and sellers...

This week Governor Schwarzenegger signed several pieces of legislation into law that will affect real estate transactions in the state of California - all for the better!

• SB 36, by Senator Ron Calderon (D-Montebello), creates licensing requirements for all residential loan originators.
• SB 237, by Senator Ron Calderon (D-Montebello), creates a registration program for appraisal management firms.
• SB 239, by Sen. Fran Pavley (D-Agoura Hills), makes it a felony to commit fraud on a mortgage loan application.
• AB 260, by Assemblyman Ted Lieu (D-Torrance), bans negative-amortization loans and limits mortgage prepayment penalties to no more than 2% of the loan balance.
• AB 329, by Assemblyman Mike Feuer (D-Los Angeles), requires lenders to give more and clearer information to those interested in reverse mortgages, which let seniors borrow against their homes' equity.
• AB 957, by Assemblywoman Cathleen Galgiani (D-Stockton), allows buyers of foreclosed homes to choose local escrow officers, rather than being forced to use the escrow company chosen by the bank seller.
• AB 1160, by Assemblyman Paul Fong (D-Cupertino), requires that mortgage loan documents be written in the same language the verbal negotiations were conducted in.

Sacramento County Real Estate Statistics - September 2009

Well...the price statistics in Sacramento County sure seem to be leveling off. For about the last 6 months, the average price per square foot has been stable. There is a bit of a trough begining to form. Perhaps now we have enough data to think this little upward bounce we have been experiencing is more than a fluke - and stability is here to stay? Time will tell.

If you would like me to email you the Facts and Trends graphs for specific zip codes in Sacramento County, just shoot me an email and I am happy to provide them.

Source: Trendgraphix

Crazy Sacramento Storm Changed the Landscape of my Backyard...

If you follow me on Facebook or Twitter, you will already know that I had a fun day yesterday due to that insane Autumn storm.

I got up around 7am to get ready for my usual Tuesday morning meeting - our Downtown Regional MLS Caravan meeting. I actually peaked outside and saw the heavy wind and rain and some ponding water in the backyard, but otherwise nothing too crazy.

About 45 minutes later, my husband went downstairs to let our hound doggies outside, and I heard him yell "Oh my god!!" I yelled back to him but he did not answer...I ran to our upstairs balcony, and saw that the tree right behind our garage had fallen! It narrowly missed our garage and broke some sprinkler valves. A few inches to the left would have resulted in some major damage! WHEW!

Well that was exciting... not much we could do, so I headed off to my meeting, and my husband, an electrical contractor, headed off to work. After my meeting, I actually had to meet my husband in South Land Park to look at an electrical escrow repair for one of my buyer transactions. The carnage as I drove through Midtown, Land Park, and South Land Park was incredible...limbs and debris everywhere! Luckily the house I have in contract was bone dry!

Went to my office but the power was out, so I decided to go home. On the way home, my husband called and told me that a 2nd large tree in the backyard had fallen. WOW! I use Twitter and Facebook from my cell phone, so I posted pics there...KFBK saw my posts and contacted me. Several people I know messaged me to say they heard my sound bite. So back to work today...I have lots of short sales to follow up with!

FHA's Energy Efficient Mortgage Program (EEM)

I am frequently asked about the FHA Energy Efficient Mortgage Program by buyers seeking to purchase homes in need of energy efficient upgrades. This programs allows buyers to finance the cost of energy efficient improvements through the mortgage loan. The buyer's loan can be increased according to EEM guidelines to cover energy improvement costs. Monthly mortgage payments increase slightly, but the buyer generally will save money on a monthly basis over the term of ownership of the home because energy bills (power / gas) are decreased...

A buyer can borrow up to 5% of the value of the property (not to exceed $8,000) above and beyond the contract purchase price of the home. Generally, FHA loan limits can be exceeded to accommodate an EEM, there is no additional downpayment required on the amount above the original contract purchase price, and there are no addition appraisal requirements.

So what types of improvements can a buyer make via the Energy Efficient Mortgage? A few examples;
-Replace a central heat & air system
-Add insulation
-Install dual pane windows
-Replace a water heater

If you would like to find out more information about the EEM and get pre-approved for your loan, you can contact Marlena Olson with the Vitek Mortgage Group at 916-486-6931.

Why do the trees in San Jose need sweaters?

If you follow me on Twitter or Facebook, you probably already know that I am in San Jose this week for the California Association of Realtors conference. I was actually a featured speaker at the conference on Tuesday, and aside from that my mind is bursting with lots of great info and stuff to blog about over the next several days...but.......

I am staying at a hotel located two blocks from the San Jose Convention Center, where this conference is being held. The first morning on my walk from my hotel to SJCC, I noticed the strangest thing. The trees lining the streets of Downtown San Jose are wearing sweaters. WHAT!?

These clearly took some effort from someone...the sweaters had to be knitted, and then the two sides had to be sewn together on the tree. RANDOM.

Erin Attardi <3 Trulia!!

I mention my love for Trulia here from time to time - I am a Trulia "MVP" and you may also notice that I have a Trulia widget on the lower right hand side column of my blog! Here I am with a few Trulia geeks at Lyon Real Estate's "Fun Realtor Education Day" aka FRED on Monday.

New Listing - 4320 Morpheus Lane, Sacramento / Garden of the Gods, 95864

Adorable and lovingly maintained 3 bedroom, 1 bath Garden of the Gods home! You will love the wood flooring, dual pane windows, remodeled bathroom with dual sinks, spacious kitchen, ample storage space, 2-car attached garage, composition roof. Central heating & air unit new in 2008! Don't miss this one! Offered at $279,500, subject to lender approval of short sale. For more photos and detail, visit http://www.4320morpheuslane.com/.

A lazy Escrow Officer makes for a frustrating transaction...

ARRGGHH! If you follow me on Facebook, you will know that I have been experiencing great frustration this week surrounding delays to the close of escrow. What was the problem, you ask? A completely incompetent (or lazy, apathetic...all of the above) Escrow Officer.

This Escrow Officer, who shall remain nameless along with her company, caused major frustration and unnecessary delays to the closing of the transaction. Just for the record, the escrow holder is a neutral 3rd party that handles the money in the transaction.

Loan documents were delivered by the buyer's lender the afternoon of Thursday, September 17th. The loan officer excitedly called me to tell me they had been sent to escrow. Great! I called and left a voicemail for the escrow officer that afternoon...no call back. I emailed her Friday morning...nothing. I called again on Friday afternoon and waited on hold 10 or so minutes for her. When she answered, she said she would prepare the documents and get the buyers in to sign their loan documents immediately. She also said she would send me the FHA Amendatory Clause document, which required my signature as the buyer's agent.

Immediately turned out to be Tuesday, the 22nd and Wednesday, the 23rd. My buyer clients were an engaged couple - one is here in Sacramento, and the other is relocating here from Daly City. They were in two different places, but no effort was made to get their signings accommodated...out-of-town document signings are common, and a mobile notary or another office of the same escrow company is used.

The loan documents were not couriered back to the lender until Thursday, the 24th, and not received by the lender until late on Friday, the 25th. By this point, the escrow officer still had not sent over the FHA document requiring my signature as the buyer's agent.

On Tuesday morning, the 29th, the lender issued its funding conditions. Among the funding conditions was a signed copy of the FHA Amendatory Clause. Tuesday morning I was at the Regional MLS meeting when I got a frantic email from the buyer's loan officer around 9:30am. She emailed me the Amendatory Clause because it was required to fund the loan. I raced back to my office, signed it, and emailed to back. Around 11am, I received an email from the escrow officer with a copy of the Amendatory Clause document...kinda late, doncha think?

The lender was able to fund the loan, and the funds were received by escrow at 2:25pm that afternoon. Great! The last time to be able to record the buyer's Deed of Trust with Sacramento County is 3pm! At 4pm, I received a call from this escrow officer stating they missed the recording deadline. No recording Tuesday, and I could not give my anxious buyer clients their keys to their new Natomas home. UGH.

I was promised that the recording would happen first thing on Wednesday morning. I should have received a call from the escrow officer around 9:30am to give me confirmation that the transaction was on record. Nada...finally around 11am I emailed her. I got an out-of-office auto-reply email that she was on vacation for the next week!! WHAT!? I called the office and spoke to her assistant. ARE WE ON RECORD???

Nope! This escrow officer had "forgotten" to request a payoff demand for the HOA transfer fees. They could not record without it. ARRGGHH!!! The escrow officer should have done this weeks prior! Several angry phone calls between myself, the buyer's loan officer, and the listing agent finally resolved this issue.

We finally recorded on Wednesday the 30th...about a week after we should have. WHAT A JOKE! Good thing my clients interest rate lock did not expire! Good thing this transaction madness was not happening at the end of November, when the first time buyer credit deadline could have lapsed! Good thing this was not a short sale close to expiration! Good thing my clients did not have to be out of their apartment!

I have a great relationship with my go-to escrow officer. I know this madness NEVER would happen with her.

Secrets of my Short Sale Success Post Featured on REALTOR.com!

Cool beans!...yesterday one of my blog posts was featured on Realtor.com. It was a post from earlier this week that described the secrets behind my many successful Sacramento short sale transaction closings.