Nef's Blog

1853 Palmgrove ~ Pomona

Nef Cortez (RE/MAX Realty 100) — Wed, 20 Feb 2008 17:49:19 -0600

Nef Cortez | Re/Max Realty 100 | 909-348-0471 ext. 131

1843 Palmgrove, Diamond Bar, CA

Bank Repo!

3 Bdrm Single Family House

offered at $294,900

Year Built	1954
Sq Footage	1,127
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	1
Parking	2 Car garage
Lot Size	6,882 sqft
HOA/Maint	$0 per month

DESCRIPTION

Single level 3 Bedroom, 2 bath home in Northern Pomona. Open floor plan with large backyard. Great for investor or first-time buyers! Will be sold in "As-Is" condition.

see additional photos below

PROPERTY FEATURES

Living room

Yard

ADDITIONAL PHOTOS

Seller contact info:

Nef Cortez

Re/Max Realty 100

909-348-0471 ext. 131

For sale by agent/broker

Equal Opportunity Housing

Posted: Feb 20, 2008, 1:40pm PST

2443 Manville ~ Pomona ~ Bank Owned Property! Priced to Sell!

Nef Cortez (RE/MAX Realty 100) — Wed, 12 Dec 2007 13:59:30 -0600

Nef Cortez | Re/Max Realty 100 | 909-348-0471 ext. 131

2443 Manville, Pomona, CA

Priced to Sell! REO Property - Is now under Auction Terms -

3 Bdrm Single Family House

offered at $199,500

Year Built	1956
Sq Footage	968
Bedrooms	3
Bathrooms	1 full, 0 partial
Floors	1
Parking	2 Car garage
Lot Size	6,000 sqft
HOA/Maint	$0 per month

DESCRIPTION

Bank Owned Property in need of some TLC. Will be sold "As-Is"condition. Great opportunity for first-time buyer or Investor.

see additional photos below

PROPERTY FEATURES

Living room

Yard

ADDITIONAL PHOTOS

Seller contact info:

Nef Cortez

Re/Max Realty 100

909-348-0471 ext. 131

For sale by agent/broker

Equal Opportunity Housing

Posted: May 1, 2008, 9:28am PDT

Foreclosures A Bargain For Homebuyers But May Come With Extra Headaches

Nef Cortez (RE/MAX Realty 100) — Wed, 12 Dec 2007 13:43:19 -0600

In the current housing market, repossessed houses or bank owned properties are plentiful in Southern California, but it will take time, patience and savvy to find -- and buy -- them.

If most people find regular real estate transactions a headache in general, buying a foreclosed property may triple that headache; however, that doesn’t mean as a buyer you won’t save money. And for the bargain hunter the substantial savings may make the headache worthwhile.

The problem is that foreclosures are nearly impossible to find. In a perfect world a buyer would go to his computer, enter a google search and find current foreclosure properties. However, in the real world, foreclosure seekers must rely on a variety of sources such as bank lists, the Multiple Listing Service, tax records and websites, according to experts who search daily for such sales.

“Some buyers are going directly to banks. Big lenders, such as Bank of America, Wells Fargo and Washington Mutual, sometimes let customers peruse their lists of foreclosed properties at local branches.” However, a foreclosed status on property doesn’t necessarily mean it is for sale. Furthermore, banks usually hire real estate agents to market, negotiate and sell these properties.

A buyer must be prepared to spend some time evaluating these foreclosure lists and making phone calls to see if the foreclosed property is actually available for sale.

The easiest way to find foreclosed properties, experts say, is through real estate agents who specialize in those sales. They've done the research, have access to up-to-date MLS (Multiple Listing Service) data and consequently save buyers the time and trouble.

Although, the research and evaluation process will take an investment of time, when you consider that this process is an improvement from the days that a buyer had to go the local county courthouse to review property records, a buyer may just make that commitment in order to save from 20% to 35% off market prices—headaches aside.

National Officials Near Deal On Mortgage Crisis

Nef Cortez (RE/MAX Realty 100) — Mon, 03 Dec 2007 14:22:00 -0600

In one of my past ad submissions , I addressed the solutions that state officials and major California mortgage lenders are trying to hammer out in order to resolve the mortgage crisis in California. This week, according to an AP article, Treasury Secretary Henry Paulson said Monday he is confident there will soon be an agreement to help thousands of homeowners avoid mortgage defaults by temporarily freezing their interest rates.

Paulson told a national housing conference that this effort involved a "pragmatic response" to current realities as the economy goes through the worst housing slump in more than two decades. The number of homeowners struggling to meet higher payments because their initial introductory rates are resetting is currently soaring and is expected to go even higher next year.

Paulson and other top Treasury officials have been holding talks with major players in the mortgage industry over the past several weeks to hammer out an agreement that would freeze the lower introductory rates to keep them from resetting to higher levels for a period of years.
As in the state talks between Governor Arnold Schwarzenegger and major mortgage lenders, one of the outstanding issues or sticking points is how long the freeze will last. Some government regulators are pushing for five to seven years but investors, who will see lower payments on the loans, are arguing for a shorter period of one to two years.
An estimated 2 million subprime mortgages, loans offered to borrowers with spotty credit histories, are scheduled to reset to much higher levels by the end of 2008. Those resets will push the payment on a typical mortgage up by $350 per month, taking it from $1,200 currently to $1,550.

Paulson said he believed the disagreements can be resolved without delay. Some expect the administration to unveil the completed deal later this week, but Paulson was not as specific in his remarks, saying only, "I am confident they will finalize these standards soon."

This is the $64,000 question, in my opinion. how long will this freezing period last?

Governor Schwarzenegger and Four Major Lenders Address Foreclosure Issue

Nef Cortez (RE/MAX Realty 100) — Wed, 28 Nov 2007 13:45:44 -0600

Four representatives of the major subprime lenders in California—Countrywide, GMAC, Litton and HomeEq—met with Governor Schwarzenegger to address the rising foreclosure rate in California and the possibility of giving a break to California’s homeowners in a plan announced last Tuesday. These four companies which collectively service more than one quarter of subprime loans to people with poor credit - agreed to maintain the initial, lower interest rate for some subprime borrowers whose rates are scheduled to jump significantly higher in the near future.

The voluntary program is designed to stem a huge wave of foreclosures. Half a million homeowners in the state have subprime mortgages that are scheduled to jump higher within the next two years after their introductory period is over. Such loan resets, in combination with a slumping real estate market, already have led to a record number of foreclosures across California.

While the actual details remain unclear of how long interest rates will be frozen, what has been determined is who will be the potential recipients of the companys’ agreement. To qualify, borrowers must occupy their homes, have made their payments on time and prove they cannot afford payments with the higher interest rate.

According to a San Francisco Chronicle article…”Larry Litton Jr., chief executive of Houston's Litton Loan Servicing, said his company plans to expand the initial interest-rate period for up to five years.

"That gives us an ability to go in five years later and if the market has recovered and the consumers can afford an increased payment, the payment can be increased at that time," he said.

Freezing the payment rate makes economic sense for the investors who own the mortgages as well as for the homeowners, Litton said. Studies have shown that each foreclosure costs lenders tens of thousands of dollars.

However, it is still unclear what each company will do for the individual homeowner; but the fact that there is an ongoing conversation about the matter is a positive step forward.

Price Slump Eating Away At Homeowner’s Equity

Nef Cortez (RE/MAX Realty 100) — Mon, 19 Nov 2007 15:32:38 -0600

According to a Sacramento Bee’s online article, a “persistent housing slump that has relentlessly driven down home prices has now wiped out at least three years of home equity gains across much of the Sacramento region, a real estate trend watcher reported Thursday.”

Median sales prices for new and existing homes combined are back to mid-2004 levels in Sacramento and Placer counties, according to statistics released Thursday by La Jolla-based DataQuick Information Systems. In Sacramento County, median prices – where half of homes sell for more and half for less – are again below $300,000. Although different real estate markets and counties vary; what is apparent and consistent across the state of California is that homes prices are in a downward trend.

For buyers, who have driven home sellers and much of the real estate industry mad by patiently remaining on the fence, it's fresh proof of a market getting ever more warm and friendly for buyers. That's especially true in suburban neighborhoods with plenty of new construction.

For sellers, though, it's not so rosy. The new sales and price numbers reveal a market heading into the traditional slower winter season firmly in the grip of a slowdown that began in late summer 2005. Many forecasters say 2008 will bring more of the same and many additional foreclosures.

Banks, too, have become powerful competitors as they try to sell the rising numbers of properties they've taken back in foreclosure.

"Several factors are conspiring to push that median down so low," DataQuick analyst Andrew LePage said. "Jumbo loan financing has gotten more expensive and harder to get, foreclosures are a growing competitive factor in more and more neighborhoods and a lot of potential buyers have concluded it pays to wait."

The proverbial glass can look half empty or half full depending on which side of the the home sale transaction you are on!

Inland Home Builders Slash Home Prices & Boost Incentives To Attract Buyers

Nef Cortez (RE/MAX Realty 100) — Thu, 15 Nov 2007 10:16:45 -0600

It’s no holiday for many home builders where “end-of-the-year deals on a glut of built but unsold homes are in full swing in the Inland counties, as builders slash prices, subsidize mortgage rates and sometimes help to sell their customers' existing houses” according to an online article in the Riverside Press Enterprise.

Borre Winckel, executive director of the Riverside County chapter of the Building Industry Association of Southern California, said the price discounting on new homes is the steepest the industry has ever seen.
With many potential buyers scared to invest in a declining market, they are being wooed by packages of incentives in regional and national promotions such as Standard Pacific's "Mission Possible," K Hovnanian's "Deal of the Century," Shea Homes' "Red Hot Sale" and Pardee Homes' "Christmas Comes Early."
Winckel said builders are struggling to market houses that are completed but unsold, which burden them with carrying costs.
The urgency is greatest for the large national, publicly held home builders needing to improve their end-of-the-year sales numbers for Wall Street investors. Industry analysts say public home builders have greater motivation and financial wherewithal than smaller private builders to cut prices in soft markets like the Inland Empire.
Recently, there were 5,221 newly built and unsold houses in Riverside and San Bernardino counties and another 7,790 houses under construction, said Steve Johnson, a director with MetroStudy, a Riverside real estate consulting firm.
Winckel said builders slashed prices quickly and aggressively with the aim of pushing the market to a bottom that would draw buyers back.
"They wanted to create a bottom of the market. But it hasn't happened yet," Winckel said. Instead, he said, price cuts have fueled consumers' worries that any house they purchase now could decline in value, prompting many to wait for an even better deal.

1605 W. 9th Street ~ Pomona ~ Bank Owned Property

Nef Cortez (RE/MAX Realty 100) — Wed, 14 Nov 2007 10:27:41 -0600

Nef Cortez | Re/Max Realty 100 | 909-348-0471 ext. 131

1605 W. 9th St, Pomona, CA

Great Starter Home! Price Has Been Reduced!

3 Bdrm Single Family House

offered at $295,000

Year Built	1947
Sq Footage	1,126
Bedrooms	3
Bathrooms	1 full, 0 partial
Floors	1
Parking	2 Car garage
Lot Size	6,168 sqft
HOA/Maint	$0 per month

DESCRIPTION

Great Starter Home w/ private pool. Bank Owned. Call for Details!

see additional photos below

PROPERTY FEATURES

Fireplace	Hardwood floor	Living room
Swimming pool

ADDITIONAL PHOTOS

Seller contact info:

Nef Cortez

Re/Max Realty 100

909-348-0471 ext. 131

For sale by agent/broker

Equal Opportunity Housing

Posted: Dec 14, 2007, 8:03am PST

Wildfires May Add to California Housing Market Woes

Nef Cortez (RE/MAX Realty 100) — Mon, 05 Nov 2007 11:41:09 -0600

Anyone watching the real estate market knows by now that Southern California's real estate market has been in a slump for more than a year, hurt by a combination of oversupply of available homes and a mortgage crisis across the United States.

Home sales in Southern California were the slowest in 20 years in September despite low interest rates, according to real estate research firm DataQuick Information Systems.

The last time a major wildfire hit the region, the housing market was booming and the fires slowed activity for a month or two before home prices continued on a rapid climb.

Realtors are being accused of “trying to put a positive spin on last week's events, remembering that in the 2003 fires, people who returned to find their homes destroyed or heavily damaged had rented nearby or bought places to live in for a few years during the rebuilding process.” The fact is that any reputable realtor with more than five years experience will acknowledge that the wildfires have put additional pressure on the housing market; however, it is those market areas that were primarily affected by the wildfires. Although as a realtor, we are knows for our upbeat outlook, no realtor who wants to maintain credibility will put a "smiley face" on a market that warrants it.

In addition, at a time when Southern California has been experiencing a housing slump, experts are predicting an additional drop in home prices ranging from 10 to 15 %.

According to a Los Angeles Times article “the chief executives of a major home builder and the country's leading mortgage lender offered bleak assessments Monday (October 26, 2007) of their industries and the economy, saying falling home prices would force more homeowners into foreclosure.

Housing prices in California could fall 10% to 15% in the next 18 months, said CEO Jeffrey Mezger of Los Angeles-based KB Home, who appeared on a panel at a Milken Institute conference about California's economic prospects.

After the discussion, Lockyer told Reuters that everyone on the panel expected declines in California home prices of 10% or more. Mezger, who anticipated the drop could be as much as 15%, said urban areas would not see as much price pressure as suburban ones because areas with jobs would be stronger, the news agency reported."

Happy Halloween to the Ghouls and Goblins in Your Neighborhood!

Nef Cortez (RE/MAX Realty 100) — Wed, 31 Oct 2007 08:44:59 -0500

...(and we're referring to the kids in costumes in case you are wondering). For all those celebrating the Halloween holiday, don't forget the various activities that are available in Diamond Bar! Just wishing that all the kids and the grownups looking after them have a safe and fun Holiday! The following are some safety tips that are good guidelines to follow:

Help your child pick out or make a costume that will be safe. Make it fire proof, the eye holes should be large enough for good peripheral vision. Try to pick costumes that do not hinder their visibility or are too difficult to walk in. You don’t want a trip or fall to cause serious injury.

If you set jack-o-lanterns on your porch with candles in them, make sure that they are far enough out of the way so that kids' costumes won't accidentally be set on fire. There are currently pumpkins on the market with lights within them that look like the real thing.

Teaching your kids basic everyday safety such as not getting into cars or talking to strangers, watching both ways before crossing streets and crossing when the lights tell you to, will help make them safer when they are out Trick or Treating.

Diamond Bar Holds Its Own Amongst Scary Drop in Median Home Sale Prices

Nef Cortez (RE/MAX Realty 100) — Tue, 30 Oct 2007 09:14:34 -0500

According to a California Association of Realtors article, home sales decreased 38.9 percent in September in California compared with the same period a year ago, while the median price of an existing home fell 4.7 percent, the California Association of Realtors® (C.A.R.) reported October 24^th.

"While it is typical for the median price to dip seasonally as we move from August to September, this decline -- which was both the largest month-to-month percentage decline on record and the first year-to-year decline in more than 10 years -- was mainly the result of the credit or liquidity crunch, which also drove sales below the 300,000 mark,” said C.A.R. President Colleen Badagliacco.

“California’s sales fell more steeply than those of the U.S. as a whole because of its heavy reliance on jumbo loans – those above the conforming loan limit of $417,000,” she said. “This speaks to the need to raise the conforming loan limit in higher-cost states like California to more accurately reflect the cost of housing.”

The median price of an existing, single-family detached home in California during September 2007 was $530,830, a 4.7 percent decrease over the revised $557,150 median for September 2006, C.A.R. reported. The September 2007 median price fell 9.9 percent compared with August’s $588,970 median price.

The impact of the credit crunch spread throughout all tiers of the market in September,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “While the entry-level portion of the market has been adversely affected by the subprime situation and tighter underwriting standards for much of this year, the high end of the market also saw a decline in sales, as even well-qualified buyers were affected by the lack of funds available for jumbo loans.”

On a brighter note, “Statewide, the 10 cities and communities with the greatest median home price increases in September 2007 compared with the same period a year ago were: Tustin, 19.7 percent; Los Angeles, 18.2 percent; Arcadia, 14.2 percent; Carlsbad, 11.1 percent; Laguna Niguel, 10.1 percent; Diamond Bar, 8.7 percent; Cupertino, 8.4 percent; Redondo Beach, 8 percent; Reedley, 7.1 percent; and Newport Beach, 6.3 percent.”

Foreclosure Risk Rising, But Only in Key Market Areas

Nef Cortez (RE/MAX Realty 100) — Fri, 26 Oct 2007 10:22:08 -0500

As homeowners observe the falling sales prices on their homes, or their neighbor’s, many fear that foreclosure may be around the corner or that homes in foreclosure may be more widespread than their local neighborhood. However, according to a Reuter’s article, although the risk of foreclosure continues to climb, it is concentrated in regions of the country with a souring economy or in areas where many homes were financed with subprime mortgages, according to a First American CoreLogic report.

”The Core Mortgage Risk Index rose 1.6 percent form the third quarter, which is a slower rate of growth than earlier this year, says Mark Fleming, chief economist.

Fleming says the findings show that the brunt of the anticipated rise in foreclosures won’t be felt nationwide. The burden will fall on areas where local economies are struggling because of lay-offs, Fleming said.

It doesn’t matter to a home owner in Detroit — the riskiest mortgage market — whether he has a burdensome adjustable-rate mortgage or a more manageable fixed-rate loan if he no longer has a paycheck, Fleming says.”

In contrast, rising foreclosures in California and Florida reflect a correction in home prices, Fleming says. As quoted in last week’s article “Nevada, Florida and California had the highest foreclosure rates in the country last month, ...California's foreclosure rate was one filing for every 253 households. The state reported the most foreclosure filings of any single state with 51,259, down 11% from August but a fourfold increase from September of last year.”

Overall, fewer than 2 percent of mortgage borrowers are at risk of foreclosure. In much of the rest of the United States home prices are stable, rising at about the rate of inflation. "As long as people have jobs there is little risk of delinquency and ultimate foreclosure," Fleming says.

California Leading With Foreclosure Rates

Nef Cortez (RE/MAX Realty 100) — Tue, 16 Oct 2007 09:00:12 -0500

According to a recent USA Today online article, home foreclosure filings nationwide fell 8% in September from a 32-month peak in August, but they were still nearly double year-ago levels, real estate information company said Thursday.

“A total of 223,538 foreclosure filings were reported in September, down from August's 243,947 but up from 112,210 in the same month a year ago, according to RealtyTrac of Irvine, Calif.

The foreclosure rate for the nation in September was one foreclosure filing for every 557 households, the firm said.

The U.S. housing market has seen sales decline and home prices fall or remain flat, making it harder for homeowners who can't afford to make mortgage payments to sell their homes or seek refinancing.

Many of those troubled homeowners were among those who took on adjustable-rate mortgages that are now adjusting to a higher interest rate, translating into payments they cannot afford to make.

The rising delinquencies and foreclosures this year have led the mortgage industry to tighten lending standards, further narrowing the potential options for homeowners struggling to pay their mortgage.

Nevada, Florida and California had the highest foreclosure rates in the country last month, the firm said.

California's foreclosure rate was one filing for every 253 households. The state reported the most foreclosure filings of any single state with 51,259, down 11% from August but a fourfold increase from September of last year.”

New California Real Estate Laws Signed By Governor

Nef Cortez (RE/MAX Realty 100) — Thu, 11 Oct 2007 10:26:51 -0500

The California legislature last week passed, and Governor Arnold Schwarzenegger signed, three laws affecting real estate transactions. Two of these laws are specifically targeted to protect the homeowner as a result of some of the excesses in the sub-prime lending debacle.

The following are summaries of those laws:

1) It is now against the law for licensed appraisers to engage in any appraisal activity that is connected to the purchase, sale, transfer, financing or development of property if their compensation is impacted by the final price generated by the appraisal.

2) A second law applies federal lending guidelines to state-chartered lenders requiring them to clearly disclose the risks and evaluate borrowers' ability to pay based on the long-term cost of the mortgage, not just the introductory rate. In California state-regulated lenders provide the majority of subprime mortgages.

3) A third bill increases the amount of affordable housing in California by raising the total debt that the California Housing Finance Agency can carry by $2 billion. CalHFA issues bonds to finance housing for low and moderate-income families.

US Chamber President Weighs In On Subprime Mortgage Crisis

Nef Cortez (RE/MAX Realty 100) — Wed, 03 Oct 2007 11:41:17 -0500

The following is an excerpt of Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce comments wherein he gives a summarized view of what happened in the subprime market and its effect on the larger housing market. His comments are right on the money, so to speak.

“…Then something unfortunate happened. Home prices started to fall. Subprime borrowers—particularly those with adjustable rate loans—could no longer meet payments. The result is about $1 trillion of commercial paper that can’t be properly priced and no one knows who holds.

Yet it’s important to keep in mind that the estimated $1.3 trillion in subprime loans represents a small portion of the $10 trillion in total outstanding mortgages. It represents an even smaller share of a securities market that is worth $100 trillion. Furthermore, only half of the subprime loans have adjustable rates.

While the alarmists are getting plenty of ink in the press these days, at the Chamber, we don’t see the subprime crisis spreading to other parts of the mortgage market or the broader economy. Growth will slow for awhile, but the chance of a recession remains small. With some action from the Fed, the market is already righting itself.

The reaction to this situation from our politicians, regulators, and fellow citizens tells us a lot about how they view capital markets. It underscores a growing desire by many to try to eliminate all risk from investment. While no one wants to see someone lose their home or investments, wee need to understand that the market goes up, the market goes down. Some people make a little money or a lot of money. Some people lose money. That’s the way it is supposed to work.

Of course, there should be strong protections against fraud and manipulation in the markets. Reasonable regulations have an important role to play. Transparency is essential throughout the entire capital formation process. But not every investment loss, market downturn, or bubble should result in legislation, regulation and litigation.”

Foreclosed Homeowners Could Get Tax Help

Nef Cortez (RE/MAX Realty 100) — Wed, 03 Oct 2007 11:19:28 -0500

Although a bill is making its way through Congress that would change the Internal Revenue service code that makes mortgage forgiveness in foreclosure taxable, until this law passes, debt cancellation can cost a former home owner both ordinary and capital gains taxes.

The bill was addressed in the Santa Cruz Sentinel (Mar 2007) regarding foreclosures in the Santa Cruz area, the reporter referred to a bill that is currently being reviewed by the house Ways and Means Committee in Washington D.C. If passed, this bill will bring welcome tax relief to those homeowners who are currently in foreclosure.

"To give borrowers who are over their heads a break, Rep. Robert Andrews, D- N.J., and Rep. Ron Lewis, R-Ky., proposed HR 1876 in April. If the Mortgage Cancellation Relief Act of 2007 is passed and signed by the president, borrowers would not have to pay income taxes when their lender forgives part of their mortgage in a short sale or in a foreclosure.

Current law treats the cancellation of any debt as taxable, even though the borrower experiences a loss and receives no cash. The bill is being reviewed by the House Ways and Means Committee." However as this bill winds it way through Congress the following Washington Post excerpt summarizes how the current law would look at the homeowner.

According to Benny L. Kass, an attorney who writes a regular column for The Washington Post, the law currently works like this:

”After foreclosure, the IRS asks the former home owner to subtract the fair market value of the house from the amount of the debt. He’ll owe ordinary income tax on this amount. Then the home owner has to subtract his adjusted basis from the fair market value. If the seller has owned and lived in the house for less than two year, he also owes capital gains tax on the difference.” Kass metions two exclusions; however, he urges former home owners to get expert tax assistance for the individual situation.

Federal Policy Makers Take Action To Address Housing Market Problems

Nef Cortez (RE/MAX Realty 100) — Wed, 03 Oct 2007 11:16:32 -0500

In a previous article, we addressed the changes in the local housing market. During the week, senior policy makers were busy addressing the current housing market’s woes before Congress. Reporting last week, in an online Reuters article “The top two U.S. economic policymakers told Congress on Thursday that allowing the biggest home finance companies to buy larger loans could ease mortgage market strains, but should be coupled with tighter regulation of the firms. Federal Reserve Chair Ben Bernanke asked Congress Thursday to limit its response to the mortgage crisis, saying that federal agencies are handling it.

Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson both dropped some of their resistance to expanding the role of Fannie Mae and Freddie Mac and said the companies could help restore funding for the largest home loans, which has dried up. Federal Reserve Chair Ben Bernanke asked Congress Thursday to limit its response to the mortgage crisis, saying that federal agencies are handling it.

“"We are responding to the subprime problems on a number of fronts," Bernanke said in testifying before the House Financial Services Committee. "We are committed to preventing problems from recurring, while still preserving responsible subprime lending."

Paulson told the House of Representatives Financial Services Committee that he could support letting the two government-sponsored enterprises, or GSEs, temporarily invest in so-called jumbo loans, or those above their current $417,000 limit, as part of a broader regulatory overhaul.

"There is little question that allowing the GSEs to securitize jumbo mortgages would give a short-term lift, which would be helpful to a segment of the housing market," he said.

Rising defaults on so-called subprime mortgages that had been extended to risky U.S. borrowers have set off a global chain reaction of tightening credit, and jumbo mortgages, even to prime borrowers, have been among the casualties.

The Fed responded to the turmoil aggressively on Tuesday by lowering benchmark U.S. interest rates by a half-percentage point to protect the economy from a housing slump that looks set to deepen further.”

Home Sale Prices Going Up or Down?

Nef Cortez (RE/MAX Realty 100) — Tue, 18 Sep 2007 10:50:23 -0500

Anyone following the media reports and newspaper articles on the national housing market is probably experiencing frustration in trying to assess how the reported numbers apply to the local real estate market. Well, we have done the number crunching for you.

According to information gathered from MRMLS, Metro Regional Multiple Listing Service, the following data has been compiled for the real estate markets of Diamond Bar, Walnut and Chino Hills.

Median Home Sales Prices – Single Family Residence

The median home sale price for Diamond Bar in August 2006 was $643,000 while that number dropped to $620,000 in August 2007. The average price per square foot for Diamond Bar in August 2006 was $346.71 while it dropped 7 percent to $321.84 per square foot in August 2007.

The median home sale price for Walnut in August 2006 was $665,000 and increased to $752,500 in August 2007. The average price per square foot for Walnut in August 2006 was $318.03 while it dropped 4.5 percent to $331.41 per square foot in August 2007.

The median home sale price for Chino Hills in August 2006 was $614,900 and decreased to $575,000 in August 2007. The average price per square foot for Chino Hills in August 2006 was $318.03 while it dropped 11 percent to $283.29 per square foot in August 2007.

Despite the seeming increase in median home sale prices (at least the City of Walnut’s median home sale price) it is worthwhile to mention that the initial list prices of homes for each city, as compared to one year ago, have dropped on average by $65,000. For example, the lowest list price for single family residences listed in Walnut last August 2006 was $558,000 while in August of 2007, the lowest price for a single family residence was listed at $419,000! The plus side of these falling numbers is that buyers with good credit are able to purchase homes in markets that were previously inaccessible to them.

City, State Budgets Strained by Dampening Housing Market

Nef Cortez (RE/MAX Realty 100) — Tue, 18 Sep 2007 10:48:25 -0500

While there has been no lack of negative media articles detailing the results of the tightening housing market, very few have covered those effects on city and state budgets.

According to the a Wall Street Journal article, “the housing downturn is putting a dent in state and local government budgets across the country, as slower home sales translate into lower revenues tied to fees for building permits and real estate transfers.

Drops in home prices will eventually result in lower property-tax revenues, which could spell problems for places like Fairfax County, Va., where property taxes account for 60 percent of county revenue. Many state and local governments have been surprised by a decline in sales-tax revenue — which accounts for upwards of 20 percent of state revenue — tied to the housing slump, which can be blamed on scaled back purchases of building materials and a decrease in home-equity withdrawals.

The National Governors Association and the National Association of State Budget Officers says spending on health care, education, and infrastructure initiatives will probably slow as a result.”

On a brighter side, despite projected budget shortfalls of $1.5 billion in Florida, $5 billion in California, and $217 million in Chicago, experts say state and local governments are better off than they were in 2002 when the recession and the Sept. 11, 2001, terrorist attacks resulted in a combined $13 billion cut in the budgets of more than three dozen states.

Presidential Candidates Weigh In on Mortgage Credit Crunch

Nef Cortez (RE/MAX Realty 100) — Tue, 28 Aug 2007 11:06:37 -0500

With the sales of existing homes hitting the slowest pace in five years, tightening credit standards by lenders and the stock market reflecting the housing market’s troubles, housing prices and values are becoming dinner table conversation. Throw in the media’s focused attention on the housing market’s woes and you can understand why that conversation is also becoming the hot topic for presidential hopefuls.

What to do about the credit crunch? How to deal with the lackluster housing market? Those are two hot questions that are being presented to presidential candidates of both parties.

According to an online article excerpted from The Washington Post, here’s what the candidates have said about the issue of housing and mortgage credit:

Democrats

Sen. Joseph R. Biden Jr. seeks hedge fund transparency.
Sen. Hillary Rodham Clinton (N.Y.) urges more “truth in lending” such as plain-talk, no fine-print disclosures for new home owners.
Sen. Christopher J. Dodd (Conn.) advocates an end to prepayment penalties and extension of Fannie Mae and Freddie Mac’s role.
Former senator John Edwards (N.C.) wants to change the bankruptcy laws to allow filers to shed mortgage debt.
Sen. Barack Obama (Ill.) seeks a federal fund to bail out home owners in foreclosure. The money would come from penalties invoked upon irresponsible lenders.

Republicans

Former New York mayor Rudolph W. Giuliani doesn’t support government intervention, but does think there should be more transparency in the process.
Sen. John McCain (Ariz.) suggests more education and some help for those who are in foreclosure because they were misled.
Former Mass. Gov. Mitt Romney believes the government should simplify the mortgage process, ensure strong oversight and punish those who are “bad actors.”

What is a “Short Sale”?

Nef Cortez (RE/MAX Realty 100) — Tue, 28 Aug 2007 11:04:57 -0500

With the current real estate market of rising Southern California foreclosures, a little known real estate transaction called the short sale is becoming increasingly popular. Usually when using the term “short” is used, it conjures up images of something that is smaller in comparison to other items or a thing that does not meet expected capacity as in “falling short”.

However, in real estate a "short sale," is a process in which a house sells for less than - or "short" of - what is owed on the mortgage and not the length of the sales transaction. Almost unknown for the past two decades, short sales are making a comeback as a way out for cash-strapped homeowners who can't keep up on their mortgage payments.

Ordinarily the person selling a home gets to decide on offers. But in a short sale, the mortgage holder (usually the lender) holds all the cards. And customarily when the lender is making the decisions, short sales actually take a lot longer to go through escrow than in an ordinary sales transaction.

Two increasingly common factors converge to create the circumstances for a short sale:

-- Homeowners have no equity or negative equity. Generally that's because they bought with 100 percent financing (or took out extra loans after buying) and the house is worth less than they paid for it.

-- The homeowner can't make the payments. These days that's probably because an adjustable-rate mortgage has reset at a higher rate, perhaps adding hundreds of dollars onto the monthly payment and the homeowner can no longer make the monthly payment and defaults on the loan.

For beleaguered homeowners, a short sale is better for their credit rating than going through a foreclosure. Still, they may end up owing extra taxes on the deal. In many cases, if you owe $600,000 on your mortgage and the lender allows a short sale for $500,000, the IRS expects you to pay taxes as if you "earned" the $100,000 forgiven on the loan. However, there is currently legislation pending in Congress that could change that rule.

For buyers, short sales may yield some bargains, albeit minor ones. As can be surmised, banks are not in the business of giving away money, so they want to be assured that short-sale properties are going for their true market value. Even so, short-sale properties are priced to sell quickly. And they do have the advantage of weeding out competition among buyers who don't have the stamina to go through the process and endure the typically protracted wait.

Selling Your Home? How Avoiding This Mistake Can Earn You Thousands

Nef Cortez (RE/MAX Realty 100) — Thu, 02 Aug 2007 09:44:55 -0500

You remember the old adage that “you never get a second chance to make a first impression.” For anyone interested in selling their home, this adage should be the first thing in their mind as they prepare their property for sale. With the help of a good realtor, a seller can get objective advice as to what “fix-it” items need to be addressed on their property before their house is put up for sale.

Without a doubt, the first place they should start is in their front yard and surrounding exterior. For many prospective buyers, how you maintain the front exterior of your home can be the difference between a buyer telling their agent that they want to take a look at your house or to keep driving on to the next home for sale. This is what is known in the business as “curb appeal”.

If you have watched HGTV, you might have seen the show where the realtor walks in to view the house that is being prepared for sale and he or she makes a disparaging comment about the curbside view of the house the minute they drive up. Don’t let this common mistake happen to you.

If you’ve lived in your home for several years there is a good chance that there is something in your yard that needs to be cleaned, trimmed or thrown out. Very often sellers have grown accustomed to some of the undone projects around their yard and need to now view these items with a critical eye. From hedges and trees that can use some additional trimming to leftover home project materials that might have accumulated in a corner. With a little sweat equity and relatively little cost, spending time cleaning up the yard can improve the sale price of your home by up to five thousand dollars and also immediately improve the chances of your property being shown to several prospective buyers.

The following is a checklist of items you might need to attend to:

* Too many flower pots or clutter around the front entryway —although a single plant in a decorative pot might enhance the front entryway, a variety of pots can detract from the entryway’s appearance. Pare them down to one or two at the most and get rid of old or broken pots.

* Tires or left over home improvement project materials —even home improvement materials that are stacked neatly can give a cluttered appearance. It’s time to get rid of them or donate them to someone who can use these materials.

* Firewood —If you can’t find a place to stack firewood neatly, you should reconsider having it in your yard at all. Firewood can attract bugs so you might be better off paring down the amount of firewood you keep.

* Dated playground equipment –If your aluminum playground equipment is rusty or if it was previously brightly colored but has since faded due to the exposure to the elements, now may be the time to dismantle the equipment and get rid of it.

* Lawn clippings and other natural waste —Sometimes leaves and debris can get stuck in corners of the yard that you might have not otherwise noticed. Have a trusted friend objectively review your yard and point out what you might have missed. Also make sure you check debris in your rain gutters.

* Bicycles and other kid’s toys —Try creating storage for bicycles in the garage on a bicycle rack or other type of storage device. Besides being a tripping hazard, bicycles are best kept in the garage or storage shed to reduce visual clutter.

* Bottles, cans & trash —Most people maintain their yard adequately; however, if you have kids they may not always be as diligent in picking up their soda cans and similar items. Make sure your yard is free of this debris.

* Exterior lights —Although most people will view your property in the daytime, a prospective buyer might drive by in the early evening. Make sure any exterior lights have had their light bulbs replaced.

* Mow the lawn, Trim the hedges — A neat, lush lawn and trimmed hedges add to the beauty of your home. If you have not regularly maintained your lawn, now is the time to pay attention to all these details.

* Pets —This is probably the most sensitive area for most homeowners, since pet owners love their pets and are tolerant of the negative side of pet ownership. However, just as there are many people who own pets; there are equally just as many who do not care for them. If you have an outdoor pet, now is the time you may need to keep him on a leash and keep his water bowl and dish scrupulously clean.

While the mere mention of these items may seem rude or offensive, a professional real estate agent will not hesitate to share this checklist with you if these items apply in your situation. Remember, don’t under-estimate the drawing power of a clean, well maintained lawn and surrounding yard: you might not get a second chance.

Five Low Cost Ways to Revitalize a Kitchen Without Busting Your Budget

Nef Cortez (RE/MAX Realty 100) — Tue, 31 Jul 2007 18:38:14 -0500

Are you tired of the outdated look of your kitchen but are short on cash?

According to Remodeling Magazine, and their annual survey, a minor kitchen remodel will recoup the homeowner over 92.9% of his or her initial investment.

Not all kitchen remodels have to cost a fortune. The following are the five ideas a homeowner can use to update a kitchen without busting his or her budget.

1) Replace the flooring. Install laminate floor over old linoleum, vinyl or chipped tile. It costs just $1 to $5 a square foot and there are many modern, easy-care styles that look like wood, stone or tile and don’t include the hefty price tag.

2) Modernize and Replace the lighting. Nothing dates a kitchen like outdated lighting. A new ceiling fixture costs less than $100 and will brighten up the kitchen. Adding some under-the-cabinet lights or pendant lights over work areas will illuminate work surfaces and give a dreary, dark kitchen some much needed light.

3) Give the cabinets a new life. A coat of good paint and new hardware is the cheapest way to go. If the budget is not too tight and the homeowner is able to spend from $4,000 to $6,000 on the project, hire a refacing company to replace the doors and drawer fronts. Make sure you replace the old hardware with some new hardware and you’ll be on your way to adding a fresh face to tired old cabinets.

4) Don’t forget to refinish the appliances. For a few hundred dollars, an appliance refinisher will re-enamel your stove, refrigerator and dishwasher door in the color of your choice, including a stainless steel look-alike. Go to an appliance store or home to inform yourself on the latest kitchen appliance colors. Make sure you get rid of colors like gold and avocado, which are a throwback to the 70’s, and repaint with fresh modern colors.

5) Make sure you update the backsplash. Replace the space between your cabinets and the countertop with fashionable stone, inexpensive wallpaper or a fresh coat of paint. A fresh coat of coordinating paint throughout the kitchen will give the whole kitchen an updated, new feel. Try to stick to neutral colors if you are planning to sell your house in the near future.

All or a few of the above ideas should make a dramatic change in a kitchen and provide the homeowner with a good return for the money invested when it comes time to sell.

Chino Hills’ Desirability Is A Secret No Longer

Nef Cortez (RE/MAX Realty 100) — Mon, 30 Jul 2007 13:45:06 -0500

Some cities have histories that unfold slowly and then seem to flourish overnight-- Chino Hills, California is one of them.

Chino Hills, California, located in the San Bernardino County, is well known for its high quality of life and beautiful rural atmosphere. The community, with its growing population of 77,969, boasts 3,000 acres of publicly-owned open space, 37 parks, and 38 miles of trails. For many years the only residents that Chino Hills knew were a few ranchers and homesteaders. A handful of property owners enjoyed and appreciated the beauty of the hills. For many decades the majority of the residents that occupied Chino Hills were red tail hawks, mule ear deer, ground squirrels, mountain lions, cottontail rabbits, and coyotes.

That all changed around the turn of the 20^th Century, when in 1907 the Boy's Republic moved to Chino Hills and made it their home. The Boy's Republic facility continues to provide important contributions to the lives of young people and sends its famous Della Robbia wreaths around the world during the holidays.

During the 1920's and 1930's, Sleepy Hollow, a Chino Hills community facility and equestrian area still in operation today, was a perfect weekend getaway from the fast pace of Los Angeles. By 1928, Sleepy Hollow was a summer resort with about 90 cabins, some of which are still in use today. After World War II, these cabins and newer dwellings became permanent residences.

As the years passed, more and more people were discovering the unspoiled hills and rural area located within an easy drive of downtown Los Angeles. Residents appreciated the rolling green hills and beautiful vistas in the community and Chino Hills grew during the 80s and the 90s. By 1982, when the community's long term development plan was approved, there were approximately 4,000 homes and 12,000 residents in Chino Hills.

Chino Hills, California is a relatively young city incorporated on December 1, 1991. Chino Hills is also home to a young, professional workforce. Nearly 40% of Chino Hills' adult residents have a bachelor's degree or higher and the community ranks among the top 15 Southern California cities in its share of residents employed as executives, professionals, or technology specialists which contribute to the city's median income of $93,332.

With its rolling hills, and beautiful vistas, its accessibility to all three neighboring counties, Los Angeles, Orange and San Bernardino, via major highways, excellent schools and convenient shopping, Chino Hills' reputation is growing as a desirable place to live in Southern California.

As a matter of fact, Dr. John Husing, an expert on the economics of the Inland Empire, has nothing but good things to say about the community and considers Chino Hills to be "one of Southern California's best kept secrets." With so many of it's well planned public and housing development projects still underway and unfolding within 46 square miles, Chino Hills desirability as a residential community will not be a secret for long.

Walnut Development Will Benefit Community

Nef Cortez (RE/MAX Realty 100) — Mon, 30 Jul 2007 13:33:27 -0500

The approval of the Walnut Hills development by the City of Walnut (California) has many positive benefits for the community. Putting the political and legal decision making process aside, there are many economic benefits that this development will bring to the citizens of this community.

This parcel of land belongs to a private entity, and there is no wide-scale public access to the 551 acre parcel. The new development will have public hiking and equestrian trails, thereby making the property accessible to the entire community. Once the property is fully developed and all homes are sold, the total value of the proposed 268 homes will exceed $500 million dollars. The city will receive a tremendous increase in its tax revenue from this particular parcel of land. These new tax revenues can then be utilized by the city to pay for ongoing programs that benefit all the citizens of Walnut, and not just those that purchase the new homes.

The new homeowners of this development will bring with them a higher level of disposable income, exceeding the median income levels which are currently over $100,000 annual income per household in the city of Walnut. This economic impact can also benefit others in the community in the following manner. The new residents will shop locally, thereby improving the business climate of existing businesses in the city, as well as increasing sales tax revenues for the City of Walnut. Opportunities for job growth may open in local businesses due to increased demand for goods and services.