We just came out of a session where we heard from the CEO of REMAX, Dave Liniger.  He presented a plethora of graphs, number and figures showing us what the real estate market has done in the past year.  He made sure to state that although real estate, when looking at the sales figures from across the country has done quite poorly in the past 2-3 years, it has maintained and sales volume has increased in local areas.  We will have some more recent figures out on our market as soon as we get back from this conference but if you want to see last month’s figures be sure to visit our news letter page.   

While in the session, Dave Liniger also mentioned that there are still many homeowners out there that may be defaulting on their homes very soon.  Consumer confidence is still low which means that the unemployment rate will still be low in the coming months, if not years.   If that is you, or if you are coming to a place where you are exhausting your savings in order to maintain payments on your home, remember that there is a smooth way to relieve yourself of that mounting debt.  Remember we are here to help families get out of the situation that they are in and our services are completely free to you.  Give us a call anytime…

WASHINGTON (Reuters) - The Congress on Wednesday approved a bill
extending the closing deadline for homebuyers trying to take advantage
of a popular tax credit.
 
Homebuyers with contracts signed by April 30 who failed to go to closing
by the June 30 deadline will now have until September 30 to complete
their purchases. The House of Representatives on Tuesday approved the
bill and it now goes to President Barack Obama for his signature.
 
The $8,000 tax credit for first time homebuyers and $6,500 credit for
others purchasing a new primary residence was a highly popular temporary
measure by the Obama administration to jump start home sales during the
economic recession.
 
Real estate agents said thousands of homebuyers would miss the June 30
deadline because banks and settlement offices were struggling to deal
with the volume of people rushing to close on their deals.
 
"In addition to helping thousands of families experience the American
dream, this successful and popular program provides a much needed boost
to Nevada's housing market and economy," Senate Majority Leader Harry
Reid said in a statement.
 
Reid, a Democrat, faces a tough re-election fight in Nevada, where the
U.S. foreclosure crisis is most pronounced.
 
The Senate acted separately on the tax credit extension after another
bill that included both the homebuyers measure and an extension of
jobless benefits for the long-term unemployed was blocked by
Republicans.
 
The jobless aid bill fell one vote short of the 60 needed to overcome
procedural hurdles in the 100-member Senate. Republicans objected to the
$34 billion cost of the bill.
 
The Democratic-backed bill would have extended the federal jobless aid
program through November. Senate Republican Leader Mitch McConnell
offered a two month extension that was paid for by using unspent money
from last year's economic stimulus program and Democrats objected.
 
Reid said he would try again to pass the jobless aid bill after the
Senate returns from the July 4 holiday recess.
 
(Reporting by Donna Smith; editing by Anthony Boadle)

A visusal perspective of 2008-2010

Owner Occupied  FHA
3.5% down  Purchase, Condo, SFR, up to 4 Units,

620 Minimum Fico

Owner Occupied  VA
0% down Purchase, Condo, SFR, up to 4 Units,

620 Minimum Fico

Owner Occupied  Conventional with MI 

5% down  Purchase only SFR

Up to $417,000

680 Minimum Fico

Owner Occupied  Conventional NO MI  

1 – 2 units 20% down 

3- 4 units 25% down

620 Minimum Fico

2nd Homes

10% down Purchase SFR - No Condos or Attached Housing

Up to $417,000
680 Minimum Fico
Property Must Be Located In Resort or Vacation Area

Agency Jumbos Up to $729,750  
10% down Owner Occupied, Purchase, Condo, SFR,
740 Minimum Fico

Investment Property Conventional

1 unit  20% down

2 to 4 units 25% down

SFR ,Condos, up to 4 Units

620 Minimum Fico

Give us a call if you would like to get pre-approved!

It is a program that will help a lot of family's and two of the great benefits of this program is that, 1. It helps families with money for relocating if you are short selling your home, and 2.  Once you sell your home utilizing the HAFA program, the lending bank may NOT pursue the seller with a deficiency judgement.

READ ON...

What is HAFA?
HAFA directs lenders to assist eligible homeowners in quickly and effectively implementing short sales or deeds-in-lieu by providing financial incentives to lenders that carry out foreclosure alternatives through the program's guidelines.  The program was introduced in part with the intent to remove the stigma from short sales and help keep communities from being destroyed through massive foreclosures. HAFA in its current state is only applicable to conventional-type, non-Governmental Serviced Enterprises (non-GSE) mortgages and therefore does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac.4 These organizations may have plans to release their own versions of HAFA.

Who is eligable for HAFA?
Most homeowners facing financial hardship are eligible. As a rule, if a homeowner is eligible for HAMP but cannot pay the mortgage, then he or she is eligible for an assisted short sale through HAFA. However, loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify. Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days if the borrower has met one or more of the following criteria1:

• Does not qualify for a HAMP Trial Period Plan
• Does not successfully complete a HAMP Trial Period Plan
• Is delinquent on a HAMP modification by missing at least two consecutive payments
• Requests a short sale or deed-in-lieu2

For a loan to qualify, it must meet the following criteria:

• The property is the borrower's principal residence
• The mortgage loan is a first lien mortgage originated on or before January 1, 2009
• The mortgage is delinquent or default is reasonably foreseeable
• The current unpaid principal balance is equal to or less than $729,750
• The borrower's total monthly mortgage payment exceeds 31 percent of the borrower's gross income (as defined in HAMP Supplemental Directive 09-013)
• The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac

Details of HAFA
HAFA was introduced to simplify and streamline the short sale process. HAFA accomplishes this in the following ways:

• Compliments HAMP by providing viable alternatives for borrowers who are HAMP-eligible
• Uses standard processes, documents and timeframes
• Provides financial incentives to borrowers, servicers and investors
• Requires that borrowers be fully released from future liability for the debt
• Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis
• Allows the borrower to receive pre-approved short sale terms prior to the property listing
• Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement1

HAFA provides financial incentives as follows:

• Homeowners qualify for $3,000 (updated March 26, 2010; was previously $1,500) in Borrower Relocation Assistance after a short sale or deed-in-lieu has been completed (may classify as taxable income in some cases2)
• Financial incentives for servicers participating in the program include up to $1,500 (updated March 26, 2010; was previously $1,000) servicing bonus upon completion of a short sale or deed-in-lieu
• Financial incentives for investors include up to $2,000 (updated March 26, 2010; was previously $1,000) for those who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders. This reimbursement will be earned on a one-for-three matching basis3
• Lenders pay all servicing fees — homeowners have no out-of-pocket expenses4

How to apply for HAFA?
Homeowners interested in utilizing foreclosure alternatives under HAFA are instructed to contact their lender if they meet the eligibility requirements and inform them of their desire to participate. Homeowners unsure of whether or not they meet eligibility requirements should contact us directly at 562-883-1003

From DSNEWS.com by Brittany Dunn

On Thursday, California Gov. Arnold Schwarzenegger signed AB 183, which will provide a tax credit of up to $10,000 to Californians who are buying their first home or purchasing a newly-built home.

“I have been up and down the state pushing this important housing bill that will get people off the fence and into homes while creating jobs and stimulating our economy – and today I am proud to take action and put it into law,” Gov. Schwarzenegger said.

The bill, authored by assembly member Anna Caballero (D-Salinas) and Sen. Roy Ashbum (R-Bakersfield), gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers—$100 million for first-time buyers of existing homes and another $100 million for buyers of new, unoccupied homes.

In the second quarter of 2010, we will have 3 major factors working against the housing market at the same time.  They are; climbing interest rates, expiring tax credits and worsening lending guidelines.  What I’m going to outline for you now is how this will impact us and why it is so urgent for your sellers and prospective seller to act NOW.

1.)    Rates: Interest rates have been at their historic low point (5%-5.5%) for so long now, most people have forgotten that the average 30 year rate is somewhere between 7% and 7.5%.  On March 30^th the Federal Reserve will cease buying all the low rate mortgage bonds.  This means buyer will qualify for less house since interest rates will likely be around 6%-6.5% by June and probably in the 6.5%-7% range by the end of the year.  This is the optimistic forecast.  If inflation shows up we’ll see rates spike sooner.

2.)    Tax credits expire: Buyers will no longer be provided incentives by the government to purchase houses.  You probably have some decent statistics about what % of sales over 100K are 1^st time or move up homebuyers.  This will put a significant dent in demand

3.)    Worsening lending guidelines: Buyers will qualify for less house because lending guidelines continue to become more restrictive.  The pendulum is not done swinging.  We can currently qualify buyers at 50% of their gross income.  This will fall to 41%-45% by mid year and we are unlikely to see any improvement until we’ve had a few years where loans stop defaulting.  Also, the minimum credit score required to purchase FHA is about to move from 620 to 640.

Looking at those three factors we can see less demand, tougher qualifying through higher rates, and tougher qualifying through lower debt standards.  These three combined will put another layer of significant pricing pressure on housing over and above some of the REO pressure that exists already.

Here is a tangible example of what we’re talking about:

Today Sally Seller sells her 200K home to Billy Buyer.  Billy gets a 200K loan at 5.5% and qualifies for the $1135 payment…everyone is happy.  Months from now Sally Seller tries to sell her home to Billy Buyer for 200K but the market is at 6.5%.  Billy can't qualify for the extra $130 per month.  For Billy to qualify for that $1135 payment when rates are 6.5%, Sally has to sell her 200K house for 180K.

This is JUST due to interest rate pressure, we’re not even considering Billy’s debt ratio or the fact that because the tax incentives are long gone, there will be fewer of Billy.

Sellers must understand the consequences of waiting in this market.  Many sellers believe waiting means give it a year and the REO market will be out of the way and we'll be fine.  The reality is as interest rates climb on a 200K house they will lose 20K in sales price for every 1% increase to rates.  We're at 5%-5.25% now and we're headed into the 7%-7.5% range.  You can do the math quickly.

Sellers must take advantage of this opportunity to sell NOW.  Some people will feel they don’t want to "give away" their house but the reality is they can cash out for significantly more value in the first half of this year, especially in the first quarter, than they will in the next 2-3 years.  

As always, if there is anything you need we are here to serve you. 

The person who was to become St. Patrick, the patron saint of Ireland, was born in Wales about AD 385. His given name was Maewyn, and he almost didn't get the job of bishop of Ireland because he lacked the required scholarship.

Far from being a saint, until he was 16, he considered himself a pagan. At that age, he was sold into slavery by a group of Irish marauders that raided his village. During his captivity, he became closer to God.

He escaped from slavery after six years and went to Gaul where he studied in the monastery under St. Germain, bishop of Auxerre for a period of twelve years. During his training he became aware that his calling was to convert the pagans to Christianity.

His wishes were to return to Ireland, to convert the native pagans to Christianity. But his superiors instead appointed St. Palladius. But two years later, Palladius transferred to Scotland. Patrick, having adopted that Christian name earlier, was then appointed as second bishop to Ireland.

Patrick was quite successful at winning converts. And this fact upset the Celtic Druids. Patrick was arrested several times, but escaped each time. He traveled throughout Ireland, establishing monasteries across the country. He also set up schools and churches which would aid him in his conversion of the Irish country to Christianity.

His mission in Ireland lasted for thirty years. After that time, Patrick retired to County Down. He died on March 17 in AD 461. That day has been commemorated as St. Patrick's Day ever since.

Much Irish folklore surrounds St. Patrick's Day. Not much of it is actually substantiated.

Some of this lore includes the belief that Patrick raised people from the dead. He also is said to have given a sermon from a hilltop that drove all the snakes from Ireland. Of course, no snakes were ever native to Ireland, and some people think this is a metaphor for the conversion of the pagans. Though originally a Catholic holy day, St. Patrick's Day has evolved into more of a secular holiday.

One traditional icon of the day is the shamrock. And this stems from a more bona fide Irish tale that tells how Patrick used the three-leafed shamrock to explain the Trinity. He used it in his sermons to represent how the Father, the Son, and the Holy Spirit could all exist as separate elements of the same entity. His followers adopted the custom of wearing a shamrock on his feast day.

The St. Patrick's Day custom came to America in 1737. That was the first year St. Patrick's Day was publicly celebrated in this country, in Boston.

Today, people celebrate the day with parades, wearing of the green, and drinking beer. One reason St. Patrick's Day might have become so popular is that it takes place just a few days before the first day of spring. One might say it has become the first green of spring.

The days are long gone for the short, smooth real estate transaction that we used to so often have 5 years ago.  We are in a much different market today.  We thought that we'd talk a little about some of the challenges we are facing being that there are so many changes currently taking place with lending institutions. 

As you have probably heard all over the media, it is much more difficult to qualify to buy a home than it was a few years back.  Banks have made their guidelines much tighter not only when it comes to the financials of a potential buyer, but also when it comes to property condition.  In the past whenever there were issues with property condition, the obvious party to take care of it was the seller.  Why you ask?  Well, the seller had an abundance of equity.  Sellers would take home anywhere from $50,000 to $200,000 when they sold their homes.  Handling repairs on their home to satisfy the buyer was no problem and made every one’s life a lot easier.   The times have changed…

You may ask, ‘who is paying for all the repairs that are required by the borrower’s lender now that the seller has no equity and is having to short sale their home?’  For all you buyers out there reading this, I hate to tell you but unfortunately it is you that will need to be prepared to make repairs on the property should your lending bank require it, and should you want to move forward with the purchase. 

In our market area which includes the cities of Downey, Norwalk, Pico Rivera, Lakewood, Bellflower, and surrounding areas, most homes are at least 40 years old.  There is no question that certain things on the property need to be repaired or replaced.  We are finding that issues can always come up, and lending banks are not willing to move forward in lending money unless certain repairs are made.   For the most part the typical repairs needed in order for banks to lend money are cosmetic things such as exterior paint.  But everything in the home, especially the 50 year old floor heater that hasn’t been used in at least 20 years need to be in working condition before a bank will release money. 

Now the question is, where is the money going to come from to pay for that?  The seller, the majority of the time obviously cannot pay for it because they are financially unstable; hence they are “short selling” the property.  The real estate agent cannot afford to pay it because the commission they will be earning isn’t anywhere near what it once was.  Real estate agents are earning approximately 50% less in commissions then they were over 4 years ago and they still have to deal with the same expenses they had 4 years ago.  In addition, banks are not willing to pay the standard 6% commission that a real estate agent is used to earning.  That leaves only the buyer to pay for the repairs required.

Regardless of the fact that a buyer will be spending money to repair certain things the lender is requiring, homes are selling for 50% less (in some areas) than they were 3 years ago.  So all in all, it is still a HUGE benefit to buy in this market. 

Inventory is still low in the South East Los Angeles area.  Ninety percent of the homes that you see on real estate search engines available to the public have multiple offers on them already.  We will talk more about this is a future blog post but for now, if you know of anyone that needs help selling their home, or is interested in buying a home  please don’t wait to contact us. 

If you are attempting a loan modification and you are wondering why the bank is not allowing you to do a loan modification, we have found an online explanation to why it many times benefits a bank to do a short sale rather than a loan modification.  It is our prediction that there are going to be many short sales this year because of this process. 

Click on the link below and it will take you to the video.  If you ever have any questions regarding either a loan modification or a short sale, please call us any time.

Watch Video    

This FHA program is called the "FHA Access Program." 

• 99.5% Financing (almost 100%)
• NO "first time home buyer" requirement
• SFR, PUD's, and condos all qualify for this program
• No cash reserves required
• Multiple properties are ok
• 6% seller concessions are ok
• Gift funds for the 1/2 down payment are ok

This is a great program.  Give us a call or send us a message through our website to see if you qualfy for this program...

Los Angeles, with all its diversity has a New Year's Eve celebration for every taste and every budget. Here are some of the big ones. For more New Year's events, visit www.newyears.com.

This information is for December 31, 2009.

• The annual Giant New Year's Eve celebration will be at the Westin Bonaventure Hotel in Downtown Los Angeles. The event will take place in two huge ballrooms and on the poolside terrace. This year's lineup includes Above & Beyond, Christopher Lawrence, Cosmic Gate and more to be announced.
  When: 8 pm to 4 am.
  Where: 404 S Figueroa Street, Los Angeles, CA 90071 (Downtown)
  Tickets: General Admission tickets are $65 advance. VIP tickets: $165 include separate entrance, VIP lounge and open bar,
  Food: Drinks and food are extra for general admission.
  Parking: At the Bonaventure for a fee
  Age Limit: 21 and up
  Info: www.giantclub.com
  Hotel: Bonaventure group hotel rates starting at $169/night at this Giant Hotel Reservations link, otherwise there's a 2-night minimum for New Year's. Compare rates at other Downtown hotels.
  
  
• The New York in LA New Year's Eve bash Gridlock will be held once again at Paramount Pictures Studio Lot. The party takes place on the studio's New York City set with 8 DJs on multiple stages and a live performances. Last year there were Free Ferris wheel rides. Dress for snow!
  When: 9 pm to 3 am
  Where: Paramount Pictures, 5555 Melrose Ave, Hollywood, CA
  Tickets: $150 general admission, $250 VIP, table and cabana packages available
  Food: Food stations throughout venue, open bar for VIP only
  Parking: included in adjacent lots on Gower and Van Ness
  Age Limit: 21 and up
  Info: www.newyears.com
  Hotel: Compare rates at hotels near Paramount Pictures
  
  
• DASK Productions' annual New Year's Eve Ball is at the Crowne Plaza Redondo Beach and Marina Hotel this year, taking their Hollywood style to the Beach. There will be multiple rooms with many DJs, aerialists, performance artists and a midnight countdown show and balloon drop.
  When: 9 pm to 2 am.
  Where: Crowne Plaza Redondo Beach, 300 N. Harbor Drive, Redondo Beach, CA 90277
  Tickets: $40 General Admission advance $50 at the door, $100 VIP. Reserved VIP tables available.
  Food:
  Age Limit: 21 and up
  Info: www.daskproductions.com, Tickets
  Note: Rooms from $180/night at the Crowne Plaza Redondo Beach. Compare rates at other Redondo Beach hotels.
  
  
• Together as One is an all-ages event at the LA Sports Arena. Multiple dance areas with top local and international DJs. This year's talent includes David Guetta, John Digweed, Dubfire, Sander Kleinberg and more.
  When: 7 pm to 4 am.
  Where: The LA Sports Arena, 3939 S. Figueroa, Los Angeles, CA 90037
  Tickets: $60 to $80 for General Admission depending when you buy them. VIP tickets for backstage access, free Vodka and Beer Bars and other refreshments are $125-$150.
  Food: available for purchase
  Parking: There are multiple parking lots around the venue for varying rates.
  Age Limit: All ages
  Info: www.newyearsevela.com
  Discount: with advance purchase
  Hotel: Compare rates at hotels near the LA Sports Arena
  
  
• New Year's Eve Extravaganza at The Kress . This Hollywood hot spot will host 4 floors of fun, but only the VIP ticket will get you into the rooftop patio, which is a bargain, considering that it usually requires $1500 bottle service to gain access to the exclusive venue.
  When: 10 pm to 2 am
  Where: The Kress, 6608 Hollywood Blvd, Hollywood, CA 90028
  Tickets: $20 general admission (3 floors, no drinks), $75 open bar (3 floors), $100 VIP (4 floors including rooftop), bottle service and table packages available
  Food: Only in restaurant
  Parking: $20 Valet
  Age Limit: 21+
  Info: http://www.newyears.com/Events/ShowEvent.aspx?eventId=6761
  Hotel: Compare rates at hotels near The Kress
  Read my Review of The Kress
  
  
• The Queen Mary in Long Beach hosts its annual New Year's Eve all over the ship. Your ticket includes admission, fireworks and access to entertainment venues including four live music venues and a DJ dance club. This year includes Top 40s, Big Band, Dixieland jazz and dueling pianos.
  Where: The Queen Mary, 1126 Queen's Highway, Long Beach, CA 90802, at the south end of the 710 Freeway, on the water.
  Tickets: $89.99
  Food: Food is available for purchase in all restaurants from $29.95 for the Promenade Buffet to a 7 course prix fix menu at Sir Winston's for $179.50.
  Parking: $15
  Age Limit: 18 and over
  When: 8 pm to 1:30 am. (doors open at 6 pm)
  Info: www.queenmary.com
  Hotel: Hotel specials on the Queen Mary. Compare rates at nearby hotels including the Hotel Maya.
  Queen Mary Visitors Guide
  
  
• Universal City Walk has a huge outdoor New Year's Eve Countdown Bash that's free to the public. The event features live music and DJs beginning at 9 pm, and fireworks from 2 ends of the street at midnight.
  When: 9 pm - 12:30 am
  Where: Universal City Walk, at the top of Universal Studios Blvd. off the 101 Freeway.
  Tickets: Free
  Food: Available at City Walk restaurants
  Parking: $10 general after 5 pm to $22 max for valet.
  Metro: Red Line to Universal City station
  Age Limit: All ages
  Info: www.citywalkhollywood.com
  Hotel: Hilton Universal and Sheraton Universal are walking distance. Compare rates at other nearby hotels.
  Universal CityWalk Visitors Guide
  
  
• New Year's Eve in Downtown Long Beach is a free street party with multiple live music and DJ stages on Pine Avenue and in the East Village Arts District. A highlight will be Red Bull stunt driver Travis Pastrana's attempt to break a world record by jumping his rally car off the Pine Avenue Pier onto a floating barge anchored in Rainbow Harbor at 9 pm. At midnight, you can see fireworks off the Queen Mary from the waterfront.
  Where: Pine Ave from 1st to 3rd, Linden and 1st St
  Tickets: Free
  Food: Restaurants will be open
  Parking: various lots
  Age Limit: all ages
  When: 8 pm to 12 am (tentative)
  Info: www.dlba.org
  Hotel: Compare rates at Long Beach hotels.

Orange County partiers have only one mega-party that I could find going on this year.

• Orange County New Year's Eve at the Hilton Hotel Costa Mesa calls itself the Official New Year's Eve Party of the OC. It includes four general admission party areas with three additional VIP zones, multiple live music stages, DJs, roaming entertainment, a fashion show and an Orange Ball Drop. After Party is across the street at the Hotel Hanford Costa Mesa.
  When: 8 pm to 2 am.
  Where: Hilton Hotel Costa Mesa, 3050 Bristol St, Costa Mesa, CA 92626
  Tickets: $60 and up advance, $100 at the door, VIP tickets are $150-$250
  Food: not included
  Parking: fee
  Age Limit: 21 and up
  Info: www.ocnye.com, Tickets
  Hotel: Special rate rooms available at the Hilton.
  
  
• The Ambassador New Year's Eve Yacht Party is a comparatively small event for just 150 people, but I'm including it as something quintessentially Southern Californian. The four-hour luxury cruise through Newport Harbor includes premium open bar all night, a champagne greeting, appetizer buffet, multiple dancing and lounge areas.
  When: 8:30 pm to 1 am.
  Where: 2901 W. Coast Hwy, Newport Beach CA 92663
  Tickets: $155-$170
  Food: Appetizers
  Parking: fee
  Age Limit: 21 and up
  Info and Tickets: http://www.newyears.com/Events/ShowEvent.aspx?eventId=6764
  Hotel: Compare rates at Newport Beach hotels.

December 10, 2009

HomeGain Releases Results of Fourth Quarter Realtor® Home Prices Survey

Realtors express their views on the direction of home prices in 2010; First time home buyers tax credit spurs sales; 56% of Realtors disapprove of Obama's performance as President

Emeryville, CA - December 10, 2009 - HomeGain, the first website to provide free instant home values, today announced the results of its fourth quarter Home Prices Survey of Realtors® based on the responses of 928 U.S. real estate agents and brokers across the United States.

The fourth quarter survey shows that 72 percent of Realtors think home prices will either stay the same (48 percent) or increase (24 percent) in the next six months. HomeGain's third quarter survey reported that 69 percent of Realtors thought home prices would stay the same (46 percent) or increase (23 percent) versus 47 percent of Realtors who thought home prices would stay the same (36 percent) or increase (11 percent) in the first quarter survey.

Twenty one percent of Realtors surveyed said more than half of their transactions in the past three months involved a first time home buyer. Only 11 percent of Realtors surveyed said that none of their transactions involved a first time homebuyer.

According to the fourth quarter survey, 41 percent of homeowners believe that their homes should be listed 10 to 20 percent higher than what their Realtors' recommend, up from 38 percent of homeowners who believed so in the third quarter and 36 percent who believed so in the in the second quarter.

Seventy-six percent of home sellers believe that their homes are worth more than their Realtors' recommended listing price, up from 74 percent in the third quarter survey and 71 percent in the second quarter survey.

Conversely, 62 percent of home buyers think that homes are overpriced, down from 64 percent in the third quarter and up from 59 percent of home buyers who thought homes were overpriced in the first quarter.

"The fourth quarter HomeGain Home Prices Survey of Realtors shows that Realtors believe that the first time home buyers tax credit has driven sales and stabilized home prices, for now. Realtors, however, expressed concerns about the cost of the credit to tax payers and whether sales will continue once the credit expires later next year and additional inventory hits the market," stated Louis Cammarosano, General Manager at HomeGain. "The vast majority of Realtors expect prices to remain the same or increase in the first six months of 2010."

Forty-two percent of Realtors surveyed indicated approval of Barack Obama's performance as President, unchanged from the third quarter and down from 57 percent in the second quarter. Thirty eight percent of surveyed respondents 'strongly disapprove' of the President's performance and 18 percent 'somewhat disapprove', earning the President a 58 percent disapproval rating. The President fared slightly better in the nationwide Rasmussen Daily Presidential Approval Index taken during the same period as the HomeGain survey, with his approval rating hovering in the 46-47 percentage range.

Real estate agent survey respondent commentary included:

• "The homebuyer tax credit has helped, but where are the jobs from that huge tax burden so-called the stimulus bill? We need the jobs more than anything else to help the economy and housing market rebound," noted Joe McAoy of Virginia Commonwealth Realty.
• "Buyers think prices are still heading down, while sellers think prices are now heading up. It's our job to bring them together."
• "I commend the President for the work he has done to help America's economy get back on solid ground. I feel that the tax incentives have dramatically helped the housing market." The fourth quarter HomeGain Home Prices Survey of Realtors was conducted from December 1-5, 2009.

Food for Thought

THANKSGIVING TIDBITS AND TIPS

 "Thanksgiving Day comes, by statute, once a year; to the honest man it comes as frequently as the heart of gratitude will allow."
                               ~ Edward Sanford Martin

Although some historians claim that the first day of giving thanks in the New World was on December 4, 1619, at Berkeley Hundred in Virginia, it is commonly believed that the first actual celebration of the harvest and blessings from God took place in Plymouth in 1621.

The festivities lasted three days and included feasting, entertainment, and competitions. President George Washington issued the first governmental National Thanksgiving Proclamation in 1789. In 1863, during Abraham Lincoln's presidency, Thanksgiving became a federal holiday, and FDR, in 1939, designated the fourth Thursday in November as the official Day of Thanksgiving.

Food Fact:

The first Thanksgiving feast most likely did not include turkey, mashed potatoes, or pumpkin pie, but the early settlers did enjoy seafood of all kinds, seals, swans, geese, corn, turnips, and spinach.

Here are some great sites for Thanksgiving recipes!! Here you will find food from the past (chestnut stuffing, mince pies), meals for the vegetarian or diabetic, healthy adaptations for old favorites, gourmet dishes, treats for kids (Daddy's Popcorn, cheesy ranch Chex mix). Also visit the websites of Ocean Spray, M and M's, Pepperidge Farm, and McCormicks. And get all your Turkey cooking questions answered at Butterball.com or call  the Turkey Talk Line - 800-288-8372.

"What we're really talking about is a wonderful day set aside on the fourth Thursday of November when no one diets. I mean, why else would they call it Thanksgiving?
                                  ~Erma Bombeck
                                    "No One Diets on Thanksgiving," 26 November 1981

Tasty Tip:
To make basic cornbread stuffing crunchy and delicious, simply add lots of toasted pecans and moisten the mixture with sweet apple cider. You can also add liquid bacon for a smokey flavor. For extra zing, do this while softly singing, "Oh, turkey dear, oh, turkey dear, how lovely are thy feathers..." and drinking spiked hot cider punch!

More tips: To calculate amount of food and drink you'll need, follow this guide.

• Whole turkey--1 lb. per person
• Bone-in turkey breast--¾ lb. per person
• Boneless turkey breast--½ lb. person
• One bottle of wine = about five glasses

Time required for thawing the bird: for each 4 ½ lbs. of frozen turkey, allow 24 hours of thaw time in the refrigerator. Once fully thawed, the turkey may be refrigerated for 1-2 days. And still another...Suggestions for turkey leftovers include dumplings, patties, chili, tetrazzini, barbeque, turkey/wild rice soup, turkey/ginger/apricot salad, all sorts of casseroles, and a myriad of others found at www.allrecipes.com and many, many others.

Want to share Thanksgiving greetings with friends and family? AmericanGreetings.com, BlueMountain.com, 123Greetings.com, Hallmark.com will send them out for you free of charge. 

And speaking of greetings--and gratitude--Xerox has a web site that lets you send a message of thanks to soldiers currently serving in Iraq. This is a FREE service and only takes a minute to do. What a great way to spread the spirit of the season! Visit LetsSayThanks.com today.

Thanksgiving Myth:

Ever feel sorry for the poor Pilgrims always dressed in drab shades? Not so, say many historians. Those early settlers used vegetable dyes to produce colorful attire, and although the colors weren't as bright as they are today, it was not at all unusual to see clothing made of wool, linen, fur, and leather in hues of blue, green, violet, red, yellow, orange, and purple. Many of the Pilgrims were skilled in clothing related trades, and they produced fashions which mirrored those of England at the time. And no buckles on shoes or hats, either--those didn't come into style until much later.

HOLIDAY DECORATIONS--EXERIOR AND INTERIOR

Create a warm and thankful holiday mood by decorating your doorstep with nature's bountiful harvest.
REQUIREMENTS: Cornucopia or Baskets, Yellow and Orange Christmas Tree Lights,
Ears of Indian Corn, plain Wooden Wreaths, Gourds, Pine Cones, Oak Leaves, Pumpkins, a yard long Velvet Ribbons, glue.

INSTRUCTIONS: Purchase a cornucopia (horn of plenty) basket and arrange pumpkins, corn, gourds, apples and nuts inside so that some of them are spilling out onto the walkway. Create garlands of autumn leaves and orange and gold Christmas lights and wrap them together around any poles or columns.  Place pumpkins, stalks of Indian corn and gourds along the edges of walkways and steps. Buy a plain wooden wreath and decorate it with artificial autumn leaves, nuts, pine cones and berries. Add a fall-colored velvet bow.  Hang the wreath on the door.  Tie around orange and gold lights in any trees or plants near the doorway.  Wrap garlands of artificial autumn leaves in the branches along with colored lights if some of your trees are bare from cold weather, Make sure none of your decorations block the peephole in your door.

CAUTION:  Check to make sure that your outdoor decorations are not in the direct line of your sprinklers. 

AND INTERIOR...A PAPER CHAIN OF BLESSINGS

You'll need:  Construction Paper, Scissors, Markers, Stapler

Directions:  Cut out 2 inch by 6 inch strips from various colored construction paper. Have everyone write one thing they are thankful for on the strips. Form the strip into a circle and staple. Make sure the writing is side out!  Take the second strip and stick it through the center of the first circle you made then staple. Continue doing this until you have used all your strips.

These hints--and hundreds of other craft ideas, songs, turkey jokes and one liners, and games are found here. A GREAT source of ideas!!

And now Kid Stuff...

Turkeys made from paper, pine cones and gourds. Download Thanksgiving screensavers. Make special Indian Corn Napkin Rings. Enjoy Thanksgiving crossword puzzles, jokes, and trivia.

Get kids into the Thanksgiving spirit with a festive turkey hat.  Make a turkey out of yarn and paper. And dress up the fridge with Indian corn magnets.

Read beautiful Thanksgiving stories, sing Thanksgiving songs, and learn about Thanksgiving around the world.

Help children make the most of Thanksgiving by planning activities that become family traditions. During dinner, have everyone tell what they are most thankful for.  If someone is thankful for food, plan to share a meal with someone less fortunate. If the kids are thankful for toys, collect unused or nearly new toys for a toy drive.

GIVING BACK...

Thanksgiving is a perfect time to share our blessings with those less fortunate than we are and to spread the spirit of friendship and community. Opportunities for helping others during the holiday season are many and can involve one individual or the entire family. Some ways to foster goodwill and embrace the idea of sharing include:

Contribute non-perishable foodstuffs for a local food bank. Give money to local agencies who feed the hungry. Volunteer your time to sort supplies, set up and/or clean up, or serve meals on Thanksgiving Day.

Invite a neighbor who lives alone to join you for dinner. Take a warm plate of Thanksgiving food--and a big smile--to a shut-in.  Contribute to holiday food collection bins in grocery stores. Purchase pre-packaged boxes of food (generally around $10.00) to be distributed by local grocers. Check with your local place of worship to see where your help is most needed.

So there you have it--facts, myths, tips, websites, and everything you have ever wanted to know about Thanksgiving. May yours be an enjoyable celebration shared with friends and family and filled with gratitude for all your blessings!

We are so excited to be able to tell our buyers that they still have the opportunity to earn up to an $8,000 tax credit when buying a property!  The deadline to buy a property and still earn the tax credit has been extended to the end of April!  They are even offering a reduced $6,500 to repeat buyers. 

You can read the full article in the LA Times....Click here  

On Oct 11th, 2009, Governor Schwarzenegger signed Senate Bill 94 (Calderon), and the legislation took effect immediately upon his signature.  Thus, California law now prohibits and person , including real estate licensess and attorneys, for demanding or collecting an advance fee from a consumer for a loan modification or mortgage loan forbearance services affecting 1-4 unit resedential dwellings. 

IF YOU ARE A REAL ESTATE BROKER, OR THE DESIGNATED OFFICE OF A LICNESED CORPORATION, WHO HAS BEEN ISSUED A "NO OBJECTION" LETTER BY THE DEPARTMENT OF REAL ESTATE FOR LOAN MODIFICATION OR OTHER MORTGAGE LOAN FORBEARANCE SERVICES, YOU CAN NO LONGER ENTER INTO THESE AGREEMENTS EFFECTIVE AS OF OCTOBER 11TH, 2009 NO CAN YOU COLLECT ANY ADVANCE FEES FOR SUCH SERVICES.

Agreements entered into and advance fees collected prior to October 11, 2009 are not affected.  Advance fees inadvertantely collected after Oct 11, 2009 must be fully refunded. 

All real estate licensees should become familiar with provisions of SB94 as there are substantial administrative and criminal penalties for violations.  For full details on Senate Bill 94, CLICK HERE 

By JAMES R. HAGERTY

(See Corrections & Amplifications item below.)

Banks and loan investors are starting to bite the bullet and lower the principal due on home mortgages for some struggling borrowers, a new report from bank regulators shows.

That's good news for some homeowners, but may portend more write-offs over the next few years for banks and other lenders now wading through hundreds of thousands of applications for loan modifications. The tradeoff for banks is that by taking the hit now they can boost their chances of being repaid.

Banks and loan servicers modify loans primarily by reducing interest rates or extending the term of the mortgage. These methods can temporarily help borrowers struggling to make payments without requiring lenders to lower the principal owed. Now, in a small but growing number of cases, banks are going further and writing off some of the loan altogether.

Part of this is due to prodding from the Obama administration, which has made saving homeowners from foreclosure a cornerstone of its economic-rescue strategy. The administration in March announced plans aimed at helping as many as nine million households struggling with mortgage debt through loan modifications or refinancings. The plans include financial incentives for mortgage-servicing firms that modify loans.

At the same time, banks now have more flexibility to modify loans because of their success in stabilizing their balance sheets and, in some cases, raising fresh capital. Banks can afford "to take the pain up front," said Kevin Fitzsimmons an analyst at Sandler O'Neill & Partners LP in New York. "If they want a legitimate chance of salvaging something out of the loans, they are better off taking the loss now."

Bloomberg News

Rows of tract houses this month in Las Vegas. The median home price in the area fell 40% to a 10-year low in August amid sales of foreclosures.

The portion of loan modifications in the second quarter that involved reducing the principal jumped to 10% from 3.1% in the first quarter, according to the report released Wednesday by the Office of the Comptroller of the Currency, or OCC, which regulates national banks.

Alejandro Estrella, a mail carrier in Riverside, Calif., said he was surprised when his lender, the Wachovia unit of Wells Fargo & Co., agreed recently to reduce the principal he owed on two mortgages on his home by 18% to about $237,000. That will lower his monthly payments to less than $1,500 from about $2,100. "I wasn't expecting it," said Mr. Estrella, who started out seeking just a reduction in his interest rate and got counseling from Springboard Nonprofit Consumer Credit Management.

Principal reductions are still the exception, though. Tom Kelly, a spokesman for J.P. Morgan Chase & Co., said the lender first tries to make loans affordable by lowering the interest rate for borrowers who qualify for modifications. If that doesn't result in a low enough payment, the bank may extend the term of the loan or defer repayments on part of the principal. That deferred principal would come due if the home is sold or refinanced.

But banks and loan servicers are recognizing that modifications don't always work if the borrowers aren't given a big enough break. Of loans modified in this year's first quarter, 28% were in default again within three months, the OCC said. Among those modified in last year's second quarter, 56% were in default again a year later.

Although the Obama administration programs for averting foreclosures got off to a slow start, they are starting to result in larger numbers of modified loans. The OCC report tallied 439,574 agreements to help troubled borrowers, including loan modifications and other repayment plans, in the second quarter. That was up 75% from a year earlier. Of that total, 142,362 of the agreements were classified as loan modifications, and 10% of those involved reducing the principal.

Beyond Housing, a nonprofit in St. Louis that counsels distressed borrowers, recently won a principal reduction for Evone Lester, a prison employee who had fallen behind on her payments and faced foreclosure. The loan was being serviced by Wells Fargo & Co. but was owned by an investor, Beyond Housing said. The investor agreed to reduce the loan balance to about $48,800 from $72,000, said Chris Krehmeyer, chief executive of Beyond Housing. That helped cut the monthly payment to $761 from $1,039.

In spite of these efforts, foreclosures continue to rise. In a report last week, Amherst Securities Group, a New York research firm, estimated that about seven million homes -- representing 12% of U.S. homes with mortgages -- will end up changing hands in foreclosures or related transactions over the next few years. The company said it doesn't expect that loan-modification efforts will ease the problem significantly, largely because so many people default again.

The OCC's report, which covers about 64% of all U.S. home mortgages outstanding, found that 11.4% of those mortgage loans were at least 30 days overdue or in foreclosure at the end of the second quarter, up from 10.2% three months earlier and 7.4% a year before.

The OCC isn't requiring banks to reduce principal, said Joseph Evers, a deputy controller at the regulatory agency. But, he said, the OCC has told banks they need to make sure modifications are "more sustainable," giving borrowers a real chance to keep up with the new payments.

Separately, the Federal Reserve Board Wednesday released a report on mortgage data from more than 8,000 lenders under the Home Mortgage Disclosure Act, known as HMDA. The report showed that blacks and Hispanic whites were far more likely to be denied last year for refinancing conventional mortgages, those that aren't insured by the federal government.

The denial rate for blacks was 61%, compared with 51% for Hispanic whites and 32% for non-Hispanic whites. That may partly reflect the larger proportion of minority borrowers who got subprime loans during the housing boom and ended up in homes whose values have crashed.

—Dan Fitzpatrick contributed to this article.