CalHFA...Grr...

CalHFA (California Housing Finance Agency) has one of the only 100% Financing programs still available...that is the good news. The bad news? Their underwriting timelines as of right now are 10+ BUSINESS DAYS. Normal underwriting timelines for conventional financing are a few days.

I have a listing that was supposed to close escrow on Friday, and because the buyer is using CalHFA programs, the close is going to be delayed about 2 weeks. Boo!

I have a buyer in contract right now, and same thing - 2 weeks for underwriting.

I suppose good things must come to those who wait?

Thanks Nick!

For the most part, I try to keep my content on this thing real estate related, but someone sent this to me today and I have not stopped laughing yet. I have bloodhounds, and this Bassett Hound thing is hilarious! Enjoy!

Attention Landlords!

If you have rental property that falls within the City of Sacramento limits, your units may now be subject to a new "Rental Housing Inspection" ordinance. This is a pilot program, and landlords who do not comply with minimum standards may face civil and/or criminal penalties! YIKES!...not sure if there are ramifications for homes outside the City limits (areas like Carmichael, Orangevale, Fair Oaks, etc. that are in County jurisdiction).

You can read up on this by visiting the City of Sacramento's Code Enforcement Department website here. For a list of inspection guidelines, click here. For further information about the Residential Rental Housing Inspection Pilot Program, you can contact the Sacramento Housing and Dangerous Buildings Division at 916-808-RENT or e-mail RHIP@cityofsacramento.org.

Bank-owned property hot in $400k and under price range

An article came out in the Sacramento Business Journal's online edition today (click here to read it)...this is very very true. This price range is where the action is!

I can also tell you from my own personal experience with clients that some banks are starting to 'get it' and price their foreclosed inventory very aggressively! There are some GREAT deals out there. Of course there are pros and cons to purchasing bank owned property vs. individually owned property...perhaps that may be the topic of a future post...

Cases in point from my own recent (within the last 3 weeks) experience;

*A client I am working with wanted to make an offer on a new bank-owned listing in Antelope. It was a clean 3/2 of about 1300 square feet priced at $149k, and had a market value likely around $190k. By day 4 there were 9 offers on it! 12 offers by day 5! My clients opted not to make an offer.

*A new client I am just starting to work with called me regarding a property in Carmichael...it is bank owned and held by one of the banks that is notorious for under-pricing property. After just 3 days on the market it had 6 offers! The price of this property? $229k!...market value probably close to $275k.

I will be very curious to see what these properties actually sell for, which will only be known after the close of escrow. The average bank-owned listing sits on the market, overpriced, for about 170 days in the 4-county area...

Two other cases in point - both from my buyer clients who closed on bank owned properties in December;

*3 bedroom /1.5 bathroom home in the Foothill Farms area (95842) that sold for $319,000 in 2006...my clients got it for $175,000 with $5k for closing costs.

*3 bedroom /2 bathroom home in South Sacramento (95823) that was re-financed for $321,100 in late 2005...my client got it for $169,900 with $5k for closing costs.

These were both buyers who were priced out of home ownership before - they were able to get 100% financing and mortgage payments comparable to the rent they had been paying!

I'm a Trooper!

Today Lyon Real Estate held its annual awards ceremony. I joined Lyon around this time last year, however I did not get the chance to attend the awards ceremony and had no idea what the shindig was all about. I knew I was going to be named as an "Executive Associate", which is based on achieving a certain production milestone. Cool enough. However, I was surprised and pleased to be awarded the Lyon Real Estate 2007 "Trooper of the Year" award for the Sierra Oaks office. One hard-working agent in each office is awarded this honor...there are about 90 agents in my office. Pretty darn cool.

Fishing Derby at Howe Park

The Fulton-El Camino Recreation and Park District will host its 11th annual Fishing Derby this Saturday, February 16th. Howe Park Pond (2201 Cottage Way, Sacramento) will be freshly stocked with trout by the California Department of Fish and Game. Cost is $10 per person, $25 for family of five. Early registration is $7 per person and $20 for a family of five. Click here for the flyer.

Bush Approves HR 5140

President Bush signed HR 5140 today. What does this mean for conforming loan limits? No idea yet! All signs are leaning towards Sacramento, El Dorado, Yolo and Placer counties’ conforming loan amount being $443,750 (not $729,750), but we still have to wait for the official final word...will keep ya'll posted.

January Stats

Inventory in January 2008 was down from December levels, but still much higher than January 2007. One interesting thing to note though - check out the pending sales. 1371 Pending sales is the highest level since March 2006! I will be curious to see when the February numbers come out next month what those levels look like, and if those pendings make the solds spike up. Median prices definitely have dropped since last year...MANY first time buyers are entering the market. Great time to buy. I would not recommend trying to sell right now unless you really need to. As always, if there are any specific areas or stats you wish to see, just shoot me an email and I am happy to forward them to you.

New Legislation Proposal: Loan Officers to be Licensed

The proposed "Secure and Fair Enforcement in Mortgage Licensing Act", aka SAFE, would establish national licensing standards for mortgage brokers and loan officers. In California (not sure about how other states handle lending practices), there is no current licensing requirement for loan officers. The loan officer that I normally refer my clients to, Marlena Olson, actually does have a Real Estate license issued by the California Department of Real Estate...however she is the exception to the rule...

I think this legislation is long overdue. It will ensure that all mortgage professionals are trained in legal aspects of lending, ethics, and consumer protection. In addition, I think it will separate true professionals from the folks who looked to make a quick buck in the industry.

Part of the licensing requirements will include classroom study, DOJ background check, and passing a written exam.

I like it. There are many loan officers out there that really have no clue what they are doing. To read more regarding this proposed legislation, click here.

Top Ten Cities for Couples - Sacramento Comes in at #10

According to Forbes Magazine, Sacramento is among the "Top Ten Cities for Couples." To determine the best city for couples, Forbes sampled data from 40 of the largest metropolitan statistical areas for five different categories: marriages per 1,000 people, divorces per 1,000 people, starter-home affordability, income disparity and availability of couple's or family counseling. Cities were then given a one to 40 ranking in each category. Marriage and divorce rankings were double-weighted, while counseling was given half weight.

To read the article, click here. To see a slideshow featuring the top 10 cities, click here.

Fraud Alert!!

A Realtor colleague of mine at Lyon Real Estate was the victim of a new type of identity theft that ya'll should be aware of.

Basically someone created an email address using her name, and advertised a fake, underpriced rental property. The person wanted first month's rent plus a deposit sent to her in exchange for keys to the rental property, which she claimed she would send to them once she received the money. Renters beware!

Here is a link to her story.