Sacramento Association of Realtors "Young Professionals Council" Raised over $4,000 for the Salvation Army CanTree!

Ever heard of the Christmas CanTree Project? This is the 27th year for CanTree, which is one of the major charitable efforts of the Sacramento Association of Realtors. The Christmas CanTree Project routinely raises more than $65,000 per year. Since 1983, SAR has raised more than $2 million to feed Sacramento's hungry citizens.

I am proud to say that on November 13, the Sacramento Association of Realtors "Young Professionals Council" held its first ever formal dance gala event to benefit the Salvation Army CanTree.

We had over a hundred attendees at our event that danced to dj music, sampled food from some great local restaurants (Zocolo, BJ's Brewery, and Tokyo Fro), sampled wine from local wineries (Carvalho, Revolution Wines, and Ehrheart), and bid on silent auction items from numerous local donors...when the night was over, we had raised approximately $4,620 for the Salvation Army CanTree!

Erin's Sacramento Short Sale Experiment, Part IV

Time for my fourth installment of Erin's Sacramento Short Sale Experiment! I am sure ya'll are just on the edge of your seats to find out just what has transpired in the world of short sales in our Sacramento metro area since the last time? I have deliberately allowed more time to pass between Part III and Part IV, so that we can see if a trend has truly emerged. For those of you not following along at home, or perhaps if you are reading this for the first time, my short sale experiment is tracking a few different Sacramento zip codes to see what how the short sale activity increases or decreases over time as compared with traditional resale listings (where there is a seller with equity in a "normal transaction") and to bank-owned resale transactions. My hypothesis at the start of this experiment: the number of short sales will grow over time, as will their dominance in our greater Sacramento marketplace (overall percentage of listings). I have continued to list more short sale properties. Let's see how this new data compares to the "control data" for the experiment and also to last month...

95624 is the section of Elk Grove closest to Hwy 99. As of right this second according to MLS, there are a total of 332 active listings there. 227/332 listings are short sales. The median price in that zip code in October 2009 was $230,000 according to Trendgraphix (an decrease over last installment). The result vs. the control data? Control data was 68.6% of all active listings in 95624 were short sales, vs. 72.5% last installment, vs. 68.3% this month. BIG DECREASE over the control data, but a more significant decrease over last installment. Number of YTD closed short sales - 203.

95610 is a section of Citrus Heights. As of right this second according to MLS, there are a total of 156 active listings there. 105/156 listings are short sales. The median price in that zip code in October 2009 was $215,000 according to Trendgraphix (a significant increase over last installment). The result vs. the control data? Control data was 60.3% of all active listings in 95610 were short sales, vs. 68.5% last installment, vs. 67.3% this month. BIG INCREASE over the control data, and a slight decrease over last installment. Number of YTD closed short sales - 76.

95826 is a section of Rosemont and College Greens. As of right this second according to MLS, there are a total of 124 active listings there. 92/124 listings are short sales. The median price in that zip code in October 2009 was also $190,000 according to Trendgraphix (an increase from last installment). The result vs. the control data? Control data was 62.2% of all active listings in 95826 were short sales, vs. 63.3% last installment, vs. 74.1% this month = BIG INCREASE. Number of YTD closed short sales - 52.

95864 is a section of Sierra Oaks, Arden Park, and Arden Manor. As of right this second according to MLS, there are a total of 151 active listings there. 39/151 listings are short sales. The median price in that zip code in October 2009 was $260,000 according to Trendgraphix (a decrease over last installment). The result vs. the control data? Control data was 17.0% of all active listings in 95864 were short sales, vs. 21.6% last installment, vs. 25.8% this month. BIG INCREASE. Number of YTD closed short sales - 16.

95818 is a section of Midtown, Land Park, and Curtis Park. As of right this second according to MLS, there are a total of 60 active listings there. 15/60 listings are short sales. The median price in that zip code in Octobet 2009 was $352,000 according to Trendgraphix (slight decrease over last installment). The result vs. the control data? Control data was 16.0% of all active listings in 95818 were short sales, vs. 21.7% last installment, vs. 25.0% this month. BIG INCREASE. Number of YTD closed short sales - 14.

95819 is a section of East Sacramento. As of right this second according to MLS, there are a total of 62 active listings there. 14/62 listings are short sales. The median price in that zip code in October 2009 was $348,000 according to Trendgraphix (a decrease over last installment). The result vs. the control data? Control data was 19.7% of all active listings in 95819 were short sales, vs. 13.9% last month, vs. 22.6 this month. BIG INCREASE. Number of YTD closed short sales - 9.

So in summary - of the six Sacramento area zip codes I am tracking for my experiment, 5 of them experienced an increase in the number of active short sale listings...the majority of the zip codes posted pretty large proportional increases, and the one decreasing zip code I am tracking posted a pretty large proportional decrease. My phone definitely keeps ringing and I continue to receive emails - I am fielding lots of inquiries from homeowners looking for more information and insight from my short sale experience...buyers too are really curious about the short sale process since they are encountering so many short sale listings in our marketplace. Also (you will be aware of this if you follow me on Twitter or Facebook), I closed many of my own short sale listings since the last installment of Erin's Sacramento Short Sale Experiment...and I have one Natomas short sale closing tomorrow. Until next time!

Erin's Sacramento Short Sale Experiment, Part I
Erin's Sacramento Short Sale Experiment, Part II
Erin's Sacramento Short Sale Experiment, Part III

My fishing photos in latest edition of The Fish Sniffer!

If you follow me on Twitter or Facebook, you will already know that photos from my fishing trip in San Francisco Bay in September were featured in the latest edition of The Fish Sniffer! They specifically featured a photo of me holding a large White Sea Bass I caught...I am on pages 26 and 27.

According to everyone we have spoken with about our catch that day (7 halibut, 4 white sea bass), it is extremely rare for white sea bass to be in the SF Bay during that time of the year, and especially white sea bass of the size we caught. Pretty cool!

Lenders must use a new Good Faith Estimate (GFE) Form starting January 1, 2010

I got a sneak preview this week at the new "Good Faith Estimate" that lenders will now be required to provide to consumers who are shopping for a mortgage loan. Starting January 1, the US Housing and Urban Development (HUD) will require lenders to use this new standard form.

What is a Good Faith Estimate? A "GFE" is an itemization of all of the costs associated with obtaining a mortgage loan. It breaks out different costs, like loan origination, appraisal fees, estimated taxes, and prominently displays the estimated interest rate, length of the loan, etc. It also shows the "fully loaded" estimated monthly payment (fully loaded = total monthly payment amount of loan principle, interest, taxes and insurance). You can get GFE from multiple lenders and compare them side-by-side.

The current GFE is one page and resembles a spreadsheet...if you have never looked at one, they can be a little cryptic to decipher. I often help my buyer clients understand what they are looking at as they shop for a loan.

Most of this new 3-page GFE document is written in plain english, and really describes what the items are, which is really nice. There are specific sections with checkboxes that are not noted on the current GFE - like for example if the loan has a "pre-payment penalty" or a "balloon payment." I think it will be very difficult for dishonest lenders to fudge different fees and terms on the new form.

The one short-coming I think the new GFE has (that I am sure will be addressed by HUD with a revision or Addendum soon) is that no where does it explain or show the "fully loaded" payment. It only shows the principle and interest monthly payment amount (and does not factor in the full payment with the monthly allocation of property taxes and insurance)...which is only part of the true picture.

Overall I give HUD a thumbs up with regard to this new GFE...but PLEASE - HUD make that revision so the full PITI payment is clearly defined on the form!

Sacramento Holiday Volunteer Opprtunities

Every year I am asked where Sacramento residents can volunteer to serve a Thanksgiving meal, or where they can donate food or other items to those in need. For 2009 I decided to compile a list of shelters and other organizations that may need your help.

Loaves & Fishes; this year they will serving a Thanksgiving lunch on Tuesday November 24th. They are also seeking food donations, such as pies, turkeys, yams, cranberry sauce, etc. They are also gathering items for a Christmas Stocking giveaway and need items like chapstick, disposable razors, playing cards, gloves, etc. They are located at 1321 North C Street in Sacramento.

St. Philomene Sharing the Bounty Dinner; a holiday meal will be served on Tuesday, November 24th at 5pm in the parish hall located at 2428 Bell Street, Sacramento 95825.

Sacramento Area Emergency Housing Center; volunteers will be needed on Thanksgiving Day and Christmas Day and there are two shifts available- 7:30 am to 10:00am for Brunch and 3:00 to 5:30 for Dinner. SAEHC will provide the food, and just need some extra helpers in the kitchen.

Sacramento Food Bank "Run to Feed the Hungry"; there are several volunteer shifts for both pre-race and race day needs. The actual Run to Feed the Hungry race is early on Thanksgiving Day, Thursday November 26.

Salvation Army Thanksgiving Dinner; a holiday meal is scheduled to be served from 11 am to 1:30 pm on Thanksgiving Day, Thursday November 26th at the Salvation Army's Center of Hope, 1200 North B Street, Sacramento.

St. Ignatius Loyola Dinner; a holiday meal is scheduled to be served on Wednesday, November 25th at 6pm in the parish hall located at 3235 Arden Way, Sacramento 95825.

Folsom Turkey Trot; the 3rd annual Folsom Turkey Trot is a benefit race on Thanksgiving Morning, to help raise money for the local foodbank and a youth scholarship. Monies raised benefit the Twin Lakes Food Bank.

Please contact the individual organizations to see if you may volunteer for any of these programs. If you know of a program that is not listed, feel free to email me and I will post it.

Official confirmation that I am a HUGE Tech Geek Realtor...

Ok so if you were not already convinced otherwise, this should confirm once and for all that I am a Tech Geek Realtor.

Yesterday I received confirmation that I was awarded the top honor in the National Association of Realtors / HP Real Estate Technology Contest. You can read the press release here.

I am absolutely honored to have received this recognition! I wear my geek badge with pride!!

Sacramento Real Estate Statistics - October 2009

Well...once again the price per square foot statistics in Sacramento County sure seem to be leveling off. For about the last 7 months, the average price per square foot has been stable, and actually increasing just slightly. 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. I can tell you that most of the transactions I have been representing for both buyers and sellers, (in all price ranges, short sales, foreclosures, and "regular transactions with a traditional sellers") are mostly met with multiple offers often resulting in pushing the price over the listing price.

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

New Listing - 2749 Via Villaggio, Sacramento / Arden, CA 95864

Great 3-4 bedroom, 3 bath home in Arden area gated community! You will fall in love with its open layout, stunning kitchen with granite counters and stainless appliances (Incl built-in refrigerator), downstairs bedroom, upstairs loft/possible 4th bedroom, grand master suite with dual sided fireplace, tub and separate stall shower, walk-in closet, and dual sinks. Low maintenance backyard with composite deck and rose garden. Offered at $275,000 subject to lender approval of short sale. For more photos and detail, please visit http://2749ViaVillaggio.com.

Ask Erin: What is an "Arm's Length" Short Sale Transaction?

In any given week, I receive a dozen calls or emails from folks seeking more information about the possibility of doing a short sale for their Sacramento home. Most folks are just doing fact finding to weigh their options (short sale, vs. foreclosure, vs. loan modification, etc.)...often times they know someone in the process of a short sale, or perhaps they are nearing default on their mortgage and their lender has suggested they try a short sale, or they have just suffered a financial hardship. These folks are on information gathering missions...cool - I am happy to answer questions about the procedural ins and out of short sales. I refer these folks to qualified professionals to answer their tax and legal questions since I can not address those issues.

About a quarter of the inquiries I receive take on a much different tone...they tend to start something like this..."I bought my house in 2005 when it was worth $X. Now in 2009, its worth substantially less. I married my spouse in 2008 and he/she is not on the loan or on the title for my house. I would like to do a short sale and sell my house to my spouse."

SORRY!

Number one...doesn't a scenario like that sound like fraud? Sorry, but I will not participate in that. Number two...I did not hear anything about a hardship necessitating a short sale. Number three...most lenders entertaining short sales require that the transaction be at "Arm's Length." A short sale lender I have worked with several times requires a document to be signed called an Affidavit of Arm's Length Transaction." It reads - "All parties to the contract on the premises dated ______ hereby affirm that this is an “Arm’s Length Transaction.” No party to this contract is a family member, business associate, or share a business interest with the mortgagor. Further, there are no hidden terms or special understandings between the seller or buyer or their agents or mortgagor. The Buyers and Sellers nor their Agents have any agreements written or implied that will allow the Seller to remain in the property as renters or regain ownership of said property at anytime after the execution of this short sale transaction. None of the parties shall receive any proceeds from this transaction except the sales commission."

I hope this clears up any confusion regarding this issue...the seller can NOT benefit in any way from a short sale transaction.

New Listing - 14 Heron Crest Place, Sacramento / Natomas, CA 95835

Great Natomas Hampton Village 4 bedroom, 2.5 bathroom home! Great open floorplan, nice kitchen with tile countertops, extra storage under the stairs. Large backyard. Don't miss this one! Subject to lender approval of short sale. For more photos and detail, please visit http://14heroncrestplace.com/.

Thinking about doing a "Streamline Refi" of your FHA Loan? Better HURRY!

FHA "Streamline Refinances" are changing dramatically on November 17th. Right now, in order to do a Streamline Refi, an appraisal is NOT required (even if your home has declined in value), and the ONLY documentation needed is a mortgage statement, your promissory note, & hazard insurance info (there is no verification of employment, no providing bank statements, paystubs, etc)!

After November 17th appraisals will be required and the FHA Streamline Refi will require FULL documentation just like a traditional refinance loan.

If you or someone you know purchased a home using FHA financing in the last 24 months, and your interest rate is higher than 6%, you might be able to save money by doing an FHA Streamline Refi…many of the interest rates on FHA loans from 2008 were 6% or higher. Today's FHA rates are in the low 5% range!!! Also, you are able to complete the refinance with out having to come out of pocket for ANY of the closing costs.

To close by the end of November, with all of the holidays in the mix, you really should get your Streamline Refi started by November 12th, which is just a couple days from now. If you are interested, please shoot me an email and I will connect you with a loan officer who can assist you.

Remember to Check Before You Burn in Sacramento County

For the last few years around this time, I have posted information regarding the Sacramento Metropolitan Air Quality Management District's designated "Spare the Air" days where you can not burn wood in your fireplace.

Their "No Burn" days are still in effect this year too from November 1 through February 28. wood burning will be restricted or prohibited in Sacramento County when fine particle pollution is elevated.

You can actually sign up for email alerts from the Sacramento Metropolitan Air Quality Management District. If you do not want to sign up for their daily emails, you can Check Before You Burn each day to confirm if it is legal to burn in your indoor or outdoor fireplace, wood stove, pellet stove, fire pit or chiminea by calling 1-877-NOBURN-5.

Check Before You Burn is in effect in Sacramento County and all its cities including Citrus Heights, Elk Grove, Folsom, Galt, Isleton, Rancho Cordova, and Sacramento.

2009 East Sacramento Holiday Home Tour - Fundraiser for Sacred Heart Parish School

It’s that time of year again!! Don’t miss your chance to attend one of my favorite annual holiday events, the 2009 Sacred Heart Holiday Home Tour of the Fabulous 40’s neighborhood in East Sacramento! There will be 5 homes on tour, each featuring unique architectural styles.

This year, the tour schedule is Friday, December 4th, 11 a.m. to 8 p.m.; Saturday, December 5th 10 a.m. to 7 p.m.; and Sunday, December 6th 11 a.m. to 5 p.m.

Time is running out to purchase your tickets in advance for only $20! You can order them online, or you can purchase them at the Sacred Heart School office, or several local retail locations (such as William Glen, Haus by David Randall, La Maison Marche, Collected Works, etc.). Tickets at the event will be $30.

This fundraiser benefits Sacred Heart Parish School, and is organized by the Parents of Sacred Heart School.

Obama Extends & Expands Home Buyer Tax Credit by Signing HR 3548

If you follow me on Twitter, you will already know that HR 3548 has been signed by President Obama…There was language added into this bill that extends and expands the home buyer tax credit! As part of its plan to further stimulate the U.S. housing market, this legislation:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010 (with another 60-day extension for buyers who are in contract as of this date, and who close escrow on or before June 30, 2010). A “first-time home buyer” is a purchaser and spouse may not have owned a residence during the three years prior to the purchase.
• Expands the credit to grant up to $6,500 credit to non-first time buyers purchasing a new or existing home between November 7, 2009 and April 30, 2010.

There are many nuances to this legislation, so please speak with your CPA regarding your qualifications for these tax credits and your eligibility. Here is a Q&A from the National Association of Realtors regarding how to obtain the tax credit.

US House of Representatives Approves H.R. 3548 with Tax Credit Extension (& Expansion)

The U.S. House of Representatives voted today 403 to 12 approving H.R. 3548, the legislation containing the extension of the home buyer tax credit, and expanding its provisions to include buyers who have already owned a home and not just first-time buyers.

With this legislation, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if the buyer is in contract prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, and existing homeowners may be eligible for a reduced credit of up to $6,500. The legislation also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively.

THIS STILL IS NOT A DONE DEAL!!

President Obama still must sign this legislation into law...this legislation is supposed to be put on his desk for possible signing tomorrow. Stay tuned.

New Listing - 1305 39th Street, East Sacramento, CA 95816

Fabulous East Sac home just on the Fabulous 40's border! Beautiful brick 2 bedroom, 1 bath home on a wonderful tree-lined street. Large living room with fireplace, large formal dining room and separate nook off kitchen. Classic features like lead glass windows and built-ins throughout. Nice backyard setting with deck. Enjoy the newer roof, central heat & air and partial basement for extra storage. Detached 1-car garage. Offered at $349,000 subject to lender approval of short sale. For more photos and detail, visit http://www.1305-39thstreet.com/.

New Listing - 7008 Bobby Street, Orangevale / Sacramento, CA 95662

Adorable and affordable Orangevale 3 bed, 1.5 bath, 1,400sf home. You will love the separate living and family rooms, wood flooring, spacious kitchen, attached 2-car garage with LARGE lot! Great location near Casa Roble High School and Louis Pasteur Middle School. Offered at $189,000 subject to lender approval of short sale. For more detail and photos, please visit http://www.7008bobbystreet.com/.