Fabulous 40s Run/Walk 5k -- Saturday July 13, 2012

This year’s Fab 40′s 5k Run/Walk  will be held on Saturday, July 14, 2012.  The run gets it's name since the route primarily tours the Fabulous 40's neighborhood in East Sacramento. It starts at East Lawn Memorial Park located at 4300 Folsom Blvd and then meanders through the fabulous forties neighborhood on M Street before returning to the Park. The 5k starts at 8:30am and the fee is $25 for adults, or $16 for the kids "Fun Run." Race packet pick-up is 10am-6pm  at Fleet Feet Sports (2311 J Street, Sacramento)  on Friday, July 13, 2012. All funds raised at this event benefit the Alzheimer's Association.

Sacramento Active 20-30 Spring Party Fundraiser "SactoPalooza" is Saturday, June 16, 2012!

My younger brother has been involved with the Sacramento Chapter of the Active 20-30 Club for several years now, and this year is the Chairperson for their annual spring party fundraising event. It just so happens that this year's event is also being held in my 'hood -- Land Park! This year's "SactoPalooza" will be at the Sacramento Zoo on Saturday, June 16th from 5pm - 10pm. Tickets are just $30...you can enjoy live music from cover bands No Duh, and the Red Not Chili Peppers, try your hand at mechanical bull riding, gladiator-style jousting, and more! Attendees must be 21 and over. Buy your tickets online here, and don't forget all funds raised will benefit local charity. I will be riding my bike and taking advantage of the bike valet and close proximity to my house! Hopefully I will see ya'll there.

Erin who??

Well...I try not to get too personally deep here on my Sacramento Real Estate Blog, but I must share something with ya'll. I have been wresting a very personal decision for a few years now....some of you may know that a couple years ago a I got a divorce. Divorce is a craptastic thing and definitely not something I ever envisioned for myself in life. The break-up of any long-term relationship is not easy to deal with, and mine was definitely was a roller-coaster of emotions.

Having said that, I have come to a deeply personal decision to change my last name back to my maiden name. I have feared doing this and have put off the inevitable since I filed my divorce petition. Professionally as a Realtor, I have only ever been known as "Erin Attardi." Well...if any woman reading this blog has ever divorced, or known a friend or family member who divorce, you can probably relate to why I want to revert back to my maiden name, "Erin Stumpf."

So -- the application with the family court system has been sent in, and with any luck within a couple months I will transition back to my maiden name. Clearly nothing about my real estate business will change except the name on my signs, business cards, websites, and advertising. I'm looking forward to being "me" again. =)

New Listing - 9720 Northport Court, Sacramento, CA 95827

Adorable and affordable 3-4 bedroom, 2 bathroom, 1,543sf home on a .255ac lot near the Lincoln Village neighborhood in Sacramento! You will love the separate living and family rooms, updated kitchen and bathrooms with granite counters, tile flooring, ceiling fans, and more! Large master suite with sitting area or possible 4th bedroom. Composition roof, dual pane windows, and HVAC are 7 years new! Don't wait! Offered at $149,000 subject to lender approval of short sale. For more photos and information, visit 9720 Northport Court, Sacramento, CA 95827.

Sacramento Real Estate Inventory May 2012 - and my 6 theories as to why there are not many homes for sale...

Where have all of the Sacramento home listings gone?? I have a few theories...if you look at this graph you will see that in Sacramento in the month of May 2012, there were 1,747 closed real estate transactions. You will also see that at the end of May, there were 2,503 pending sales, and only 1,697 active listings. WOW! If you compare this data to the the statistics for May 2011, there were 3x the number of properties available and a similar number of closed sales.

Gee, I remember when I posted back in September 2007 when there was 15 months of housing inventory on the market in Sacramento -- now THAT was a buyer's market! Based on these current numbers for May 2012, we have LESS THAN ONE MONTH of inventory. Wow. My jaw may have just hit the floor...but I will say that it's pretty much the current "normal" to have multiple offers on every home listing within a couple days.

So those theories of mine...

Theory #1; Homeowners are not selling unless they absolutely have to. Let's face it. Sacramento County has been in a declining real estate market since the end of 2005. Our current median home value is less than half of value at the peak of our Sacramento real estate market. People have tightened their purse strings and are not looking to sell unless absolutely necessary, even if their home is worth less than they owe...as long as they can afford the payments. Similarly, (my Theory 1B, if you will indulge me) with interest rates so low, even homeowners with Adjustable Rate Mortgages (ARM's) whose payments have started adjusting from their initial 3/5/7-year fixed rate period -- their payments have not yet jumped several hundred dollars per month as they did in years past when interest rates were higher. Today's interest rates are SO low (like 4% or less!) that when those mortgage payments reach their adjustment time periods, their payments are actually decreasing slightly. If, and really WHEN interest rates climb, you will see those payments increase and no longer be affordable, and those folks will need to list their homes as short sales, or they will ultimately default and you will see those listings as bank repos in a year or two.

Theory #2; Many folks are keeping their first homes as rentals and buying larger homes. If you have good credit, good income, and some money in the bank -- there are some great buying opportunities right now. Many of the "move-up" buyers I am working with are not selling their current home in order to buy their next one. Similarly, there are a lot of investors purchasing homes right now that are not selling a home in order to buy.

Theory #3; Many folks who are good candidates for short sales are spending (wasting) their time attempting loan modifications. It seems that in the last 4-6 months there have been several new loan modification programs introduced by the federal government. There are a lot of homeowners tied up in this process, which will ultimately be unsuccessful, and they will list their homes as short sales eventually. Time is running out though for some of the state and federal debt forgiveness tax laws though, so I am hoping they don't wait too long to list their homes as short sales.

Theory #4; Many of those folks who are attempting loan modifications are slowing down their lender's foreclosure processes. Many lenders will slow down their foreclosure timelines while borrowers attempt a loan modification...so many homeowners are caught up in this process right now that foreclosures are a little slower to happen. The loan modifications will be rejected in time, and the foreclosures will eventually take place...sense my optimism that the loan modifications will be approved (insert sarcasm here)?

Theory #5; Some foreclosed properties are being rented out instead of sold. I suppose it could make sense that banks do not want to sell at the bottom of the market either? There are some large property management companies that are leasing out foreclosed homes on the bank or asset manager's behalf. They will eventually be sold, but in 1-3 years.

Theory #6; There are many foreclosed homes that being held off the market, that are possibly going to be a part of a large "bulk sale" movement from banks and asset managers to investment firms. UGH. We at the California Association of Realtors (where I serve on the Board of Directors) think this is a bad idea...it will be the largest "property flip" ever. C.A.R. has ramped up lobbying efforts to prevent bulk sales and allow the homes to be sold on the open market to regular home buyers. But yep...it's reality. Call your legislators if you think this idea is lame!

So anyway, it will be interesting to see what happens in the Sacramento market with our housing inventory. I feel it is safe to say that in terms of values here in Sacramento we are at the bottom, bumping along...as we have been for the last year or so.

19th Annual Sacramento SPCA "Doggy Dash" & "Bark at the Park Festival" -- June 9, 2012

The 19th Annual Sacramento SPCA "Doggy Dash" and "Bark at the Park Festival" is happening this Saturday, June 9th, 2011 in William Land Park. About 5,000 pet-lovers will gather with (and without) their favorite doggy friends to raise money that benefits the Sacramento SPCA. This is so much fun! I was lucky enough to attend for the first time two years ago, and the event is so much fun! I "borrowed" one of my good friend's dogs since I lost my sweet boy Harold in 2010...The walk is a blast, and I also really enjoyed seeing all of the other dogs (including a Great Dane club with about 50 gorgeous Great Danes)! You can choose to participate in a 2k or 5k walk with your pooch. Registration opens at 7:30am and the walks begin at 9am.

The "Bark at the Park Festival" takes place in the park after the "Doggy Dash." Register your hound to compete in the Pup Show, high-flying Disc Contest, or the Pug Races (and if you have never witnessed the Pug Races, that alone is a MUST SEE!)!! Then be sure to visit the participating sponsors and exhibitors with pet-friendly businesses, see a Sacramento PD K-9 Unit demonstration, learn about Sacramento-area animal rescue organizations, or just enjoy some food while taking it all in.

Register here! Whether you choose to bring a 4-legged friend, or invite a two-legged friend along, mark your calendar for the "Doggy Dash" and "Bark at the Park Festival" and help make a difference in the lives of homeless animals sheltered at the Sacramento SPCA. Register as a solo participant, start a team or join an existing team.

Is that short sale listing owned by a Living Trust? This may be problematic...

If your home is held in a living trust, and you are seeking to do a short sale, you may have an additional hurdle to jump through when you list and try to sell your property. Why, you may ask?

Well...living trusts generally don't obtain home mortgages; individual people obtain mortgages, and then they transfer the title of the home into their living trust, while their mortgage remains in their names personally. There's no problem with doing this -- folks do it all the time and use living trusts for family estate planning and asset protection purposes. So what is the issue that occurs when a home that is held in a trust is listed for a short sale?

The title to the home is "Smith Family Living Trust", however the names on the mortgage company records are John Smith and Mary Smith. On the listing agreement documents, the seller is listed as "Smith Family Living Trust" rather than John Smith and Mary Smith. On the documents that the title company generates, the trust is listed as the owner, not the individuals who obtained the mortgage. Soooo....when the short sale lender receives the request for a short sale, and the name trust appears on all of the listing agreement, purchase contract, and escrow/preliminary title report documents -- this can be problematic.

When this information does not match, the short sale lender will probably ask why, and may request new documents that name the individuals as the sellers. So basically, the short sale lender may indirectly require that the title to the home be transferred out of the living trust and back into the names of the individuals. Simply providing a modified listing agreement and a new purchase contract with corrected names will not be sufficient...and is probably illegal. The title company absolutely WILL NOT be able to issue a revised preliminary title report and HUD-1 document unless there is proof of recording a transfer with the county recorders' office. Doing so often takes valuable time (document preparation, signing, notarization, filing with the county recorders' office, etc). Also, the seller really needs to get legal advice -- removing a home from a trust may have certain tax or legal ramifications.

Some short sale lenders will not care, however some will. If you are a homeowner with property in a trust, and you are considering doing a short sale, you may want to have a conversation with the attorney who prepared your trust in advance of listing the house to find out if it makes sense to transfer the title back to you (as individuals)...before listing the house. AND if you are a buyer, and you get into contract on a short sale and on your contract documents list the seller in a trust - you may wish to have your agent ask the listing agent if this may be an issue. It is best to be proactive before it becomes a problem!

Erin in the media...

Just in case anyone is totally wondering...I have re-labeled the Sacramento Real Estate Blog tag formerly known as "Erin Attardi in the Media" to "Erin in the Media" -- so if you have clicked through to a link looking for media articles and items of that nature featuring me, please visit the new tag "Erin in the Media."