Harold Penner's Blog

"ForeclosureGate" - Legit or a Blip?

Harold Penner (Guarantee Real Estate) — Sun, 17 Oct 2010 20:37:22 -0700

Flooding the news this week are announcements of new and existing foreclosures being suspended due to national attention regarding the legality of lender’s review of paperwork and transfer of title. Attorney Generals in all 50 states have launched investigations regarding lender’s foreclosure proceedings.

Every state processes foreclosures differently. Unlike California, many states require judicial review of foreclosure proceedings. Allegations have surfaced in 23 states stemming from the involvement of the court system and the associated documentation and transfer of title.

So what are the allegations?

Lack of Review of Foreclosure Documentation and Possible Forgery

Law firms in these 23 states review foreclosure documentation in the course of this judicial process. Investigations now contend that this documentation was outsourced to “robo-signers” who claim they signed 8,000-10,000 documents per month at a rate of about a minute per document. Lawsuits are being filed stating that missing signatures were forged and that proper review of documents was impossible under that timetable.

For more news regarding role of "robosigners," here is a recent New York Times article

California, on the other hand, does not involve the court system in foreclosure proceedings. There may be “robo-signers” employed on behalf of banks, but that is still to be determined. Bank of America, to date, is the only bank to halt foreclosures in California and claims there is no wrongdoing. Other mega-banks such as JP Morgan and Wells Fargo are reviewing the roles of robo-signers in their organizations but have not halted any foreclosures in California to date.

That hasn’t stopped California lawyers from getting involved however. Here’s a recent story on California foreclosure

Improper Transfer of Title

In the midst of banks failing and crises occurring, it was common for loans to change between multiple lenders. The transfer of title was largely outsourced to a firm called Mortgage Electronic Registration System (MERS). When foreclosures began to build this company was used to initiate proceedings. Now, the question is whether MERS had a legal right to handle these foreclosures if they didn’t actually own the loans. Even more alarming, investigations are underway as to whether MERS complied with individual state and municipal requirements regarding registering change of title. Which means if a loan was sold from Bank “A” to Bank “B” but MERS did not complete all paperwork finalizing the transfer, then when Bank “B” forecloses on the home and an homebuyer buys it and moves in, did Bank “B” actually have the right to sell that home?

For more news regarding role of MERS, here is a recent USA Today article

What Does This Mean For Fresno, California Buyer and Sellers?

All of these investigations and news are still too early to know where it will go. California has a clearer transfer of title due to courts not being involved. But, in our litigious state that does not necessarily mean safety for home buyers. Here is a recent story of a California attorney advising clients to break into their foreclosed home after it was purchased and rehabbed by an investor: HousingWatch.com

Now, I believe stories such as these are isolated circumstances. Logically, I would say that within California this foreclosure investigation will only be a blip in which reviews of foreclosures will extend escrow timelines and homes may be delayed in being foreclosed due to increased paperwork and scrutiny. But, with the volume of homes and money involved in these types of investigations, frivolous California lawsuits could change that scenario. It’s too early to say.

Sellers –

Sellers whose homes are unaffected by this foreclosure investigations have a competitive advantage. They can offer buyers delay-free, stress-free escrows that are quite attractive. Nearly half active homes currently for sale in the Fresno area are foreclosures or short sales. Bank of America is the largest provider of those properties, which makes “seller-owned” homes a hot commodity.

Buyers -

Fresno, California is currently ranked as one of the “Top Ten Cities” in the nation to buy a home for a good reason. Fresno is currently one of the cheapest places to buy in the United States in comparison to rental rates. Selling prices (except for a brief blip in June due to conclusion of first time home buyer credit) has averaged between $94-$97 per square foot in Fresno County in 2010. This means that if you bought a house a year ago or today, the average home price would only have varied $5000. In contrast, between 2007 and 2008, average home prices dropped from $160 to $108 per sq. ft. which equates to about $100,000 difference in price! So, prices are low and steady in the area and buyers shouldn’t hesitate to buy if the right home comes along.

To view homes for sale visit: HomesInFresno.com

HAFA Short Sales - Will They Work?

Harold Penner (Guarantee Real Estate) — Fri, 13 Aug 2010 19:16:34 -0700

Home Affordable Foreclosure Alternatives (HAFA)

You may have received a letter from your lender notifying you of a new government programs for homeowner mortgage assistance called "Home Affordable Foreclosure Alternatives (HAFA)." This program appears to hold some promise for streamlining the lengthy short sale process and also offers incentives for homeowners and lenders to participate. Here's some of the basics for those currently upside down on their home:

What is a Short Sale?

A homeowner works with a local realtor to sell their property for a current market rate and the mortgage lender agrees to accept the net proceeds of the sale even if the proceeds are less than the total amount due on the mortgage.

What is HAFA? - http://makinghomeaffordable.gov/hafa.html

First, the program promises a speedier, smoother process for processing a short sale. Through pre-approving HAFA participants, pre-determining listing prices with agents and setting a timeline for the active marketing of homes the program attempt to streamline some of the delays and frustrations for buyers and sellers.

Second, HAFA provides incentives for borrowers and banks to proceed with a short sale. Borrowers who participate will receive $3000 in relocation expenses at the close of escrow and assurance that they are not responsible for any remaining debt or obligations on their first mortgage. Lenders such as Freddie Mac also states that your home cannot be foreclosed upon if you are actively complying with the HAFA short sale program.

If the short sale does not succeed (no offers submitted for an acceptable amount with 120 days) then the homeowner can obtain a Deed-in-Lieu instead of foreclosure proceedings. A Deed-in-Lieu is where a homeowner voluntarily transfers ownership of the property to the lender instead of the lender legally seizing the property through foreclosure.

Is My Lender a Participant in HAFA?

View comprehensive list at: http://makinghomeaffordable.gov/contact_servicer.html

What about Freddie Mac and Fannie Mae Loans?

Yes, as of August 5, 2010, Freddie Mac and Fannie Mae federally backed mortgages. If you're not sure if you have a Freddie Mac or Fannie Mae loan, you can check at the links below. Either way, you would call the number on your loan statement to start the prequalification process:

Do you have a Freddie Mac Loan? - http://www.freddiemac.com/mymortgage/
Do you have a Fannie Mae Loan? - http://www.fanniemae.com/loanlookup/

Do I Qualify for HAFA?

The first step for qualifying is to first request a "loan modification" to determine if it is possible to adjust your current loan to make it more affordable. This program allows homeowners to continue to own their home at lower monthly payments. You would call your lender and ask if you qualify for the "Home Affordable Modification Program" (HAMP).

If you find that you do not qualify for HAMP, here are the HAFA requirements:

Be the owner-occupant of a one- to four-unit home. Exception - If the homeowner relocated more than 100 miles from the property AND has not purchased a one- to four-unit property within 90 days prior to the date of a HAFA Agreement.
Have an unpaid principal balance that is equal to or less than:
o 1 Unit: $729,750
o 2 Units: $934,200
o 3 Units: $1,129,250
o 4 Units: $1,403,400
Have a first lien mortgage that was originated on or before January 1, 2009.
Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income.
Have a mortgage payment that is not affordable due to a financial hardship that can be documented.

If you answered "Yes" to these questions then you passed the basic requirements and you should contact your lender to dive into more of the details on your loan.

If I Don't Qualify for HAFA does that mean a short sale is not an option?

A short sale is still an option for anyone that owes more on their home than it is currently worth. Not qualifying for HAFA simply means the additional government incentives such as the relocation reimbursement are not available.

Does HAFA work?

Now, that's the big question. There is certainly a need to streamline the short sale process. As of today (August 13, 2010) in the Fresno County local market, there are 1,354 active short sale properties for sale. Those homes have lingered on the market for an average of 137 days. This past month, a whopping 42% of all sold short sales sold in July (121 properties) had been on the market longer than 120 days before selling.

I've listed and closed nearly 50 short sales in the past two years and the review process by lenders, investors and mortgage insurance providers has stretched from 30 days to over a year. So, consequently I'm skeptical of improvement until I see this program in action.

So far, I have two HAFA qualified short sales actively on the market with Bank of America and Wells Fargo. Wells Fargo's HAFA program currently appears much more automated. We were able to obtain HAFA pre-qualification for our client by emailing documents on their behalf. Bank of America, on the other hand, required communication directly with our client through a separate HAFA phone number and could only send documents through US Mail. In that specific case, the documents never arrived and our client had difficulty understanding the requirement complexities by phone. So, the frustration of not being able to communicate directly with Bank of America on our client's behalf is complicating any pre-qualification. In the midst of those delays, the buyer found another home and we are back to the starting point.

So, no successful HAFA short sales to date, but the program is new. I would still encourage anyone who believes they qualify to consult their lender and start the process.

Interested in a Free Assessment of Your Home for a Short Sale?

Fresno Condos: A Good Buy?

Harold Penner (Guarantee Real Estate) — Thu, 24 Jun 2010 11:18:19 -0700

HAROLD PENNER: Fresno Real Estate Market Analysis

Fresno Condos: A Good Buy?

One of the questions often asked by clients is, "Are condominiums a good investment in the Fresno County area?"

Current Price:
Certainly, the price is compelling. Investors, first time home buyers and retirees are currently picking up Fresno County condos for an average of $106,354 (approx. $74 per square foot). That means mortgage payments hover around $800 for a 1,200 square foot condo. For many buyers, condos provide an extremely affordable and attractive option.

So price isn't the question right now. But, should you buy is the question. The Central Valley is traditionally a single family home environment. Is there enough demand for condos in Fresno? With volatile real estate swings how does the value of condos compare with traditional homes?

Current Demand:
Well, if there was ever a time to judge the staying power of condos through tough real estate times, it is now! The statistics are interesting. Comparing single family home sales from the height of the real estate boom (typically viewed as 2005) to today, the number of homes sold has remained relatively constant. When viewing Fresno County condo sales under the same parameters, there were 62% less condos sold in the first half of 2010 than in the same months of 2005. One explanation for this reduction in sales is the relative halt of apartment conversions into condo developments.

Current Bank Owned Sales:
This would seem to suggest that condos are a much more questionable investment than traditional homes. Yet, when you dig deeper you find that of these 2010 sales, the percentage of single family homes and condos sold as foreclosures and short sales is nearly identical. 63% (2,445 of 3,851 sales) homes sold in 2010 to date were foreclosures and short sales compared to 62% of condominiums (85 of 137 sales).

Also, while the numbers are certainly jarring for those owning homes, the overall worth of these two different types of properties dropped at a similar pace in our area. The average single family home purchased today would be 54% less in value in Fresno and Madera County than in 2005. The average condo is close behind with a 58% reduction in value.

Overall Value:
So, yes, condos plummeted in value within our area. But, they are keeping pace with traditional home sales in percentage of value. Prices for both types are currently flattening out. If you compare sales in January 2010 vs. May 2010, the average price per square foot of both types of homes rose $4 each. In Fresno County, condos in January sold for an average of $70 per square foot and last month sold for $74. Single family homes selling for $97 per square foot increased to an average of $101 for May.

So, bottom line, for those who may desire the simplicity of a condo but worry that they aren't as secure an investment as a home, the numbers should speak for themselves. There may not be as many condos on the market today as in the past, but they are here to stay!

Contact my office for the latest Fresno real estate deals!

JUNE MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in May 2009 vs. 2010 - $155,311 vs. $159,189 (2.5% Increase)
Sold Homes in May 2009 vs. 2010 - 990 vs. 892 (10% Decrease)
# of Foreclosures and Pre-Foreclosures Sold in May 2009 vs. 2010 - 711 vs. 503 (30% Decrease)
Avg. Loan Percentage Rate in June 2010 - 4.60% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Craigslist Real Estate Scams

Harold Penner (Guarantee Real Estate) — Fri, 28 May 2010 18:04:43 -0700

HAROLD PENNER: Fresno Real Estate Market Analysis

Craigslist Real Estate Scams

As with any form of free online advertising, Craigslist.org provides a perfect vehicle for scammers to prey upon people searching for real estate. These scams are now taking on a disturbing level of sophistication. Scammers are now copying descriptions and pictures of active homes for sale from public real estate sites such as realtor.com, trulia.com, and others. Those homes are then re-posted as rental properties on Craigslist for low monthly rent. The actual name of the seller is used (most likely obtained by public tax assessor records) but with a false email address.

Recently, a client was shocked to learn that his home had been posted for rent on Craigslist when he discovered prospective renters exploring his backyard. The email explained the presence of the for sale sign by stating that the house had been pulled off the market and the sign would be taken down shortly. My office also received a frantic call from a renter who wired a large rental deposit for this home to the scammer.

Here are some ways to avoid being scammed:

Meet prospective landlord in person - As with the case above, the scammer will typically state they live or are visiting Africa or a European country and are unable to meet in person.
Confirm that the home is not for sale - Visit a real estate site (zillow.com, trulia.com, etc.) to check if the supposed rental property is actually for sale. You can also go a step further and contact the real estate agent on the listing to confirm that the home is for sale and not for rent.
Tour Inside of Home - Driving by and confirming the location, neighborhood, etc is not sufficient. Arrange to view the interior of the home prior to any money exchange.
Extremely Low Price - If the price appears too good to be true, it probably is. Renters eager to take advantage of a great deal let down their guard. Scammers will also take legitimate homes listed for rent on Craigslist, slash the prices and repost the same home. Be wary of low rental prices and take the above precautions.

Here are some helpful links:

http://www.craigslist.org/about/scams

http://en.wikipedia.org/wiki/Advance-fee_fraud

http://www.rentvine.com/tools/rentalscamquiz/

MAY MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in April 2009 vs. 2010 - $155,311 vs. $172,004 (11% Increase)
Sold Homes in April 2009 vs. 2010 -1091 vs. 936 (14% Decrease)
# of Foreclosures and Pre-Foreclosures Sold in April 2009 vs. 2010 - 801 vs. 613 (24% Decrease)
Avg. Loan Percentage Rate in May 2010 - 4.71% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

California Short Sale Tax Awareness!

Harold Penner (Guarantee Real Estate) — Sat, 17 Apr 2010 17:49:18 -0700

HAROLD PENNER: Fresno Real Estate Market Analysis

California Short Sale Tax Awareness!

As many of you know, one of my specialties is short sales. For those who have explored all other options and are faced with the unfortunate reality of being unable to continue to own their home, a short sale is much more advantageous than a foreclosure.

Current Short Sale Statistics

The number of sold short sales (pre-foreclosed homes) in Fresno and Madera county has increased over 30% from last year. 302 homes were sold in 2010's first quarter in comparison to only 206 homes in the first 3 months of 2009.

The irony of referring to these transactions as "short" still remains however. Average days on market was 154 days (over 5 months!) in 2009 and a slight drop to 140 days in 2010. The main reasons short sales fail is due to the delays in banks to review and respond to offers and the subsequent inability of buyers to wait for an answer.

Currently, short sales represent only 15% of the homes sold in our local Fresno and Madera county market. For the patient buyer though, there are some excellent deals available.

To view more regarding the pros and cons of purchasing short sales, visit: Buying Short Sales

Short Sale Tax Information

For those of you who experienced a successful short sale of your principal residence this past year, there is good news regarding taxes. Prior to the housing crisis, if someone were to sell their principal residence (not an investment property) home as a short sale the amount of debt forgiven by the bank would be viewed as taxable income by the state and federal government. So, if your home sold for $50,000 less than what you owed on the home and the bank agreed to forgive that debt, the government would view that $50,000 as taxable income. With the recent state of the housing market, the federal government added provisions that if it is your principal residence this rule does not apply to homes sold before 2013. California had a similar law that expired and those whose homes were sold in 2009 have been in limbo.

On April 12, 2010, the state of California extended that protection to anyone who sells their home as a short sale between 2009 and January 1, 2013. For those who already submitted their 2009 taxes, the state is instructing you to file Form 540X to request an adjustment.

Click here for short sale tax info: Mortgage Debt Relief Law

Contact my office for the latest Fresno real estate deals!

MARCH MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in March 2009 vs. 2010 - $158,322 vs. $164,485 (4% Increase)

Sold Homes in March 2009 vs. 2010 -1010 vs. 842 (17% Decrease)

# of Foreclosures and Pre-Foreclosures Sold in March 2009 vs. 2010 - 780 vs. 533 (32% Decrease)

Avg. Loan Percentage Rate in April 2010 - 4.95% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING
943 Oak Ave., Clovis, CA 93619

$238,000
3 Bedrooms
2 Bathrooms
1,767 sq. ft.

Close to Old Town Clovis! A beautiful home in meticulous condition with 3 car garage, within the prestigious Clovis Unified School District. The wood floor entry opens up to a bright living room with vaulted ceiling. The kitchen has black appliances with working countertop that has a great view out to the eating area (with bay windows), back yard and family room. The cozy family room boasts a beautiful brick fireplace. You'll be impressed with the great lighting (cam lights) and the natural light coming through the shuttered windows. The master bedroom has sliding doors to the back yard, vaulted ceiling and 2 windows. Two sinks in the master bath, a shower, no tub. Ceiling fans in all rooms. White interior doors throughout. Wired for security system, but it has never been connected. Long-lasting cinderblock fencing in back yard! What a great place!

Click here to view 943 Oak Ave.!

2010 Hot Real Estate Deals!

Harold Penner (Guarantee Real Estate) — Tue, 23 Mar 2010 13:28:06 -0700

HAROLD PENNER: Fresno Real Estate Market Analysis

2010 Hot Real Estate Deals!

A lot of my buyers interested in newer homes are being lured by the prices of Fresno homes along the Highway 99 corridor. New communities sprang up along the 99 during the housing boom of 2005 and 2006 and now with so many homeowners defaulting on their loans, there are some excellent buys in the area.

Clovis vs. West Fresno Foreclosures:

This past month there were 22 homes sold in 93722 and 93723 that were built in 2000 or sooner. 21 of those 22 homes were foreclosures or short sales with the only remaining house being brand new. A similar number of homes were sold in the newer areas of Clovis (93619, 93730) yet the ratios and prices are quite different. Out of 20 homes sold, 9 were foreclosures or short sales, 4 new construction and 7 traditional sales. For those that are open to expanding their search area to find the best deals, the 93722 and 93723 zip codes are a must see. A much higher ratio of discounted homes (foreclosures and short sales) are available in the Highway 99.

Clovis vs. West Fresno Pricing:

The same floorplans can often be purchased near Highway 99 for around $40 less per square foot. In 2009, the average selling price per square foot was only $99 in west Fresno (93722, 93723) compared to $143 in Clovis (93619, 93730). On a 2,000 square foot house that is a difference of a whopping $80,000! Contact my office for the latest Fresno real estate deals!

FEBRUARY MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in February 2009 vs. 2010 - $149,246 vs. $167,025 (12% Increase)
Sold Homes in February 2009 vs. 2010 -763 vs. 639 (16% Decrease)
# of Foreclosures and Pre-Foreclosures Sold in February 2009 vs. 2010 - 627 vs. 411 (35% Decrease)
Avg. Loan Percentage Rate in March 2010 – 4.89% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING

2516 E. Prestwick Ave., Fresno, CA 93730

$615,000
5 Bedrooms
4.5 Bathrooms
4,081 sq. ft.

Over An Acre! Near Copper River Country Club, this sprawling, extensively remodeled home features 5 bedrooms, 4 bath, with fenced pool and 3 car garage. The gourmet kitchen features granite counters, mahogany wood floors, stainless steel Jenn-Air appliances, and a sub-zero fridge. The adjoining pantry is a room in itself! The family room includes an office, bathroom, and laundry. Four bedrooms center around a playroom with two adjoining bathrooms. The isolated, master bedroom suite has double door entry and a private patio. Relax in your jacuzzi tub next to frameless shower. In the center of the home, there is a 34x21 great room, with vaulted ceiling and brick fireplace. The grounds feature mature trees, wonderful entertaining and play areas. An exceptional property and price! Click here to view 2516 E. Prestick!

2010 Suburban Property Predictions - Clovis, CA

Harold Penner (Guarantee Real Estate) — Fri, 29 Jan 2010 10:07:02 -0800

HAROLD PENNER: Fresno Real Estate Market Analysis
2010 Clovis Property Trends!

I have had an increasing number of buyers seeking suburban (over an acre) residential property on the outskirts of Clovis. They are primarily move-up buyers eager for space and privacy, but still desiring a closer proximity to the Clovis resources. Since there are fewer typically for sale (less than 100 sold per year) these types of property historically retain value longer than traditional properties. Judging from recent trends this may be one of the best times in recent history to buy suburban residential land in Clovis.

Pricing Changes?
2006 was the height of the market for suburban properties with a median price of $684,450. 87 homes were sold that year and it was rare to find anything below $400,000 in the area. Over the past four years the number of sold homes remained relatively steady with 97 homes sold in 2009. But the median price has reduced by 47% to $376,650 making it now possible to buy a Clovis suburban property in the $300,000 range!

Seller Changes
In addition to price, one notable change is the type of seller in these homes. In 2006, 99% of suburban Clovis homes sold were seller owned. By 2009, that number decreased to less than half (47%) of suburban properties being sold by sellers. Of the remaining homes, 47% were bank-owned sales and 6% were short sales. Since bank owned and short sale properties are sold at below-market prices, this change was a primary reason for the plummeting prices.

2010 Pricing Expectations
One interesting trend at the moment is the lack of bank owned or short sale listings in Clovis suburban properties. Of the 73 homes currently active (as of 01/27/10), there are only 6 bank owned and 10 short sales. Foreclosures have been declining throughout Clovis, but this trend appears to be slightly higher in the suburban market. Unless there is a large influx of foreclosures to skew the numbers and drive prices lower, pricing in Clovis acreage should remain steady and begin to increase over 2010.

Active Homes for Sale:

Here’s an example of a home that can be purchased at the median pricing of today:

8447 N. Chamise, Clovis, Ca 93611 –
• $374,000
• 2,959 Square Feet
• 3 Bedrooms
• 3 Bathrooms

Over 3 Acres! A rare find with over 3 acres of land, this home is situated on the Academy Hills with sweeping views of the Fresno city lights and surrounding mountains. The property features a pool as well as horse stalls, fenced pastures with arena and access to miles of trails. Three bedrooms, office, and den allow for ample living space.

Click here for more info on this home!

DECEMBER MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in December '08 vs. '09 - $178,048 vs. $164,644 (7% Decrease)

Sold Homes in December '08 vs. '09 -847 vs. 910 (7% Increase)

# of Foreclosures and Pre-Foreclosures Sold in December '08 vs. '09 - 543 vs. 497 (8% Decrease)

Avg. Loan Percentage Rate in January 2010 – 4.88% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING
794 W. Brittany Lane, Clovis, CA 93619

$199,000

3 Bedrooms

3 Bathrooms

1,601 sq. ft.

Gated Community! This updated European Quarters home features warm cherry cabinets with open kitchen layout. There is a downstairs guest suite and loft with home office workstation. Additional features includes a long driveway allows for additional parking and privacy block wall in the backyard.

Click here for more info on this home!

Mission of the Heart - Fresno Real Estate

Harold Penner (Guarantee Real Estate) — Tue, 29 Dec 2009 19:15:28 -0800

HAROLD PENNER: Fresno Real Estate Market Analysis
Mission of the Heart!

This Christmas season I am reminded of all good that can come from people. I had the privilege of working with a buyer and seller on a unique sale this fall. An investor bought a foreclosed home in the south Fig Garden area of Fresno. Previously, the location for one of the largest drug busts in Fresno's history and later partially renovated and then vandalized, the home needed to be stripped to the studs and rebuilt.

Click to View Fresno Bee Article

Instead of a traditional renovation and sale, this home construction project became a mission of the heart. The investor (who wishes to remain anonymous) organized the effort for donations of services and materials from local contractors and companies to renovate this home from top to bottom. All profits from the sale of the completed home were given to four faith-based charities: Evangelicals for Social Action, Fresno Rescue Mission, Habitat for Humanity and Poverello House.
"Witnessing businesses and individuals respond so willingly to requests for materials and services was truly humbling. And watching a home formerly associated with such darkness and crime being transformed was a very fulfilling experience" stated the seller.

The final product is a stunning 2,300 square foot, 3 bedroom, 3 bath home with new landscaping, plumbing, electrical, cabinetry and fixtures. Built in 1937 on a 13,500 square foot lot with historical detailing throughout, the home even features a rare Fresno basement. Additions include a new two car garage and attractive front courtyard. "We were just in the right place at the right time," stated the first time home buyers. "It was a complete construction zone when we first saw it, but once we walked through the home with the contractor we saw the vision for the place and were hooked."

In the midst of the current economic downturn, it was truly a pleasure to see the commitment to quality and selfless actions that were demonstrated throughout this project. I wish all of you a very merry Christmas season!

NOVEMBER MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in November '08 vs. '09 - $178,935 vs. $169,042 (5% Decrease)
Sold Homes in November '08 vs. '09 -691 vs. 759 (9% Increase)
# of Foreclosures and Pre-Foreclosures Sold in November '08 vs. '09 - 493 vs. 454 (8% Decrease)
Avg. Loan Percentage Rate in December 2009 - 4.78% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING
5275 W. King Fisher Ln., Fresno, CA 93722

$215,000

2 Bedrooms

2 Bathrooms

1,271 sq. ft.

Adorable Home! Located in the small, quiet, gated community of European Bluffs, this 2 bed/2 bath home offers luxurious amenities, neutral décor and peaceful surroundings. A rare find, this community features affordable living in the midst of million dollar Fresno bluff views. Granite counters, large master suite with adjoining den/sitting room, indoor laundry closet and one car garage. Located near Herndon and Milburn.

Click here for more info on this home!

Tax Credit Extension - Impact on Fresno, Clovis Real Estate

Harold Penner (Guarantee Real Estate) — Wed, 18 Nov 2009 17:31:28 -0800

HAROLD PENNER: Fresno Real Estate Market Analysis
Tax Credit Extended!

The big real estate news this month is the extension of the federal tax credit for first-time home buyers from November 30, 2009 to April 30, 2010. A first time home buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

Now even more interesting for many of my sellers/buyers is a new tax credit that was added for repeat buyers. Buyers who already own a home and have lived in the home for five consecutive years are eligible for up to a $6,500 tax credit on their next home purchase. Whether you are interested in moving up or downsizing from your current home, you qualify as long as the new home will be your future primary residence.

Click to Access More Information on Tax Credits

So, those are some incentives for buying, but the question I am often asked is whether now the right time to buy in Fresno and Clovis, California. Well, I prefer to let the numbers do the talking when it comes to answering that. There are certainly fewer choices of homes available today than a year ago. 5,010 homes were for sale in October 2008 in Fresno and Madera Counties. Today the number of active properties averages around 2,500. So, there are 50% fewer homes for sale today than a year ago. The primary reason for this is the reduction of foreclosures. The number of foreclosures for sale today have decreased by about by an astounding two-thirds since the beginning of the calendar year.

Many buyers may be waiting for those foreclosures to come back and flood the market with bargains thereby driving the overall price down. But, by looking at the statistics from this past year and by referencing the historical trends of the Fresno market, I don't anticipate any significant price drops. During the height of active foreclosures, the average selling price was $156,256 (January 2009). With 50% fewer homes to choose from the average pricing this year has inched up to $174,867 (October 2009).

Now, it's possible that if foreclosures returned with a vengeance, Fresno and Madera counties' prices would decrease. But, in the past year the demand for homes has also increased. First time home buyers have now seen prices that are affordable and within reach. Out of town investors have again returned to buy rental properties. The overall number of sales has been steadily increasing instead of decreasing.

So, in short, I am advising clients that with historically low loan rates, low prices and this newest tax credit extension this is truly an excellent time to buy.

OCTOBER MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in August '08 vs. '09 - $190,044 vs. $175,036 (8% Decrease)
Sold Homes in August '08 vs. '09 -907 vs. 891 (2% Decrease)
# of Foreclosures and Pre-Foreclosures Sold in August '08 vs. '09 - 595 vs. 577 (3% Decrease)
Avg. Loan Percentage Rate in September 2009 - 4.83% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING
2765 Rialto Avenue, Clovis, CA 93611

$312,000

4 Bedrooms

2 1/2 Bathrooms

2,489 sq. ft.

Three Car Garage! Lovely Clovis home with fenced pool and 4 bedrooms plus a loft! This pristine Seller-owned home features hand scraped maple hardwood floors in downstairs entry, hallway, kitchen, nook & bathroom. The kitchen includes granite countertops, built-in gas range & breakfast bar.
Click here for more info on this home!

First Time Home Buyers - Cashing In!

Harold Penner (Guarantee Real Estate) — Thu, 17 Sep 2009 18:15:25 -0700

HAROLD PENNER: Fresno Real Estate Market Analysis
First Time Home Buyers - Cashing In!

Tax Credit Deadline Approaching!

The clock is ticking and the rush is on for first time home buyers to cash in on the $8000 federal tax credit. They must close escrow by November 30, 2009. With escrows typically lasting a minimum of 30 days, the next few weeks are critical for anyone interested in squeaking in before the deadline!

Here are a few of our recent clients that took advantage of these credits to buy their very first home!

Mike Bone

"I wasn't even thinking about house hunting until I heard about that $8,000 tax credit," remarked first time home buyer Mike Bone. He had heard that Harold Penner was an agent with the connections and knowledge to get people into homes fast and thought he would see what was out there. Initially interested in only the 93710 and 93726 area but discouraged by having only fixer-uppers in his price range, the Penner Team steered Mike towards a Cambridge built home in Northwest Fresno near Polk and Herndon.

"I absolutely love the home and the neighborhood. It's hard to believe that this is all mine," says Mike. Still at a loss with how to fill 1,600 square feet of space, this bachelor is looking forward to spending some of that $8,000 on home improvement projects this winter.

Mike Bone relaxing at home in his kitchen!

The Downs Family

Brian Downs, a local Fresno firefighter, and his family were on the hunt for months to find the perfect first home. In addition to Brian and Yvonne's three kids, they are committed to opening their home to invest in the lives of college students. The addition of these boarders/adopted family members meant that plenty of bedrooms were required! They also wanted to keep their kids in Clovis school district and were interested in having a pool.

After being outbid on a few foreclosures, the Penner Team led them to 2,468 square foot home with a pool near Shepherd and Chestnut that was a perfect fit! "Working with Harold and his son Jesse was wonderful and we know we would have never found this place without them," said Brian. Even better, the Downs were one of the lucky few in which the wait for an offer on a "short sale" was actually short! "After waiting so many years to buy, it is amazing to be able to own something like this," remarks Brian.

Enjoy the latest family photo of this lively bunch!

Click here to request a custom home search set up today!

AUGUST MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in August '08 vs. '09 - $213,590 vs. $176,874 (17% Decrease)
Sold Homes in August '08 vs. '09 -779 vs. 829 (6% Increase)
# of Foreclosures and Pre-Foreclosures Sold in August '08 vs. '09 - 453 vs. 601 (33% Increase)
Avg. Loan Percentage Rate in September 2009 - 5.00% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING
2676 E. Muncie Ave., Fresno, CA 93723

$274,000

3 Bedrooms

2 Bathrooms

1,858 sq. ft.

Three Car Garage! Granville home featuring three bedrooms including spacious master suite sitting room. Upgraded options include tile flooring, upgraded carpet and fully landscaped backyard with covered patio. Located in the new Clovis North High School area. Neutral and attractive decor throughout this seller owned home make it ideal for move in. Come see today!
Click here for more info on this home!

Appraisals in Fresno - Challenging Times

Harold Penner (Guarantee Real Estate) — Thu, 13 Aug 2009 13:21:24 -0700

HAROLD PENNER: Fresno Real Estate Market Analysis
Appraisals in Fresno - Challenging Times

Appraisal Update

In May 2009, the "Home Valuation Code of Conduct" was adopted by all Freddie Mac and Fannie Mae backed loans (which accounts for over half of the loans in the United States). These regulations were created out of a concern that a lender who directly hires the appraiser for a property could unduly influence or pressure the appraiser to adjust the price. So, the government backed a new policy that appraisals must now be ordered through a third-party company in order to limit communication between the appraiser and the lender or realtor.

The act has had some negative consequences. Local lenders were previously able to choose their appraisers based on quality, knowledge and experience. Now the decision of who completes an appraisal is left to a national or regional appraisal company who often assigns the job to the lowest bidder regardless of experience and expertise. Additionally, many independent appraisers with years of experience in the local market now must join a third party company in order to continue to do business.

Here are some recent news stories covering this issue:

Daily Herald - Utah

Daily Press - Virginia

Detroit Free Press - Michigan

Fresno Market Conditions:

These regulations come at a time of change in Fresno/Clovis real estate which makes accurate appraisals all the more critical. In the past 3 months, the average price of sold homes, the speed of selling the home and the number of homes selling above the asking price have all inched up. One reason for this is that there are less homes available today than there were 3 months ago due to a decrease in the number of foreclosures. The other reason is qualified buyers taking advantage of current tax credits (only available until November 30, 2009) and low prices.

Here are the latest statistics for residential homes sold in Fresno and Madera Counties:

Average Selling Price
- All Homes - $167,346 (July 2009) vs. $155,875 (April 2009)
- Foreclosures Only - $130,899 (July 2009) vs. $123,477 (April 2009)

Days on Market
- All Homes - 50% sold in 1-30 Days (July 2009) vs. 30% (April 2009)
- Foreclosures Only - 61% sold 1-30 Days (July 2009) vs. 40% (April 2009)

Listing Price vs. Selling Price -
- All Homes - 101% over asking price (July 2009) vs. 99% (April 2009)
- Foreclosures - 105% over asking price (July 2009) vs. 100% (April 2009)

So, in other words, the majority of houses listed in Fresno and Madera counties are currently selling above asking price. This is especially true in north Fresno and Clovis as well as homes priced under $200,000.

Consequently, the latest challenge in Fresno real estate is not finding a buyer for a home but instead having the house appraise for the sold price. I have seen more and more cases of buyers involved in a bidding war for a house and then the sale being cancelled because a seller cannot afford to lower the purchase price to the appraised value. Or there have been more cases of sellers choosing to sell to a cash buyer for a lower price instead of a buyer with a conventional loan to avoid any appraisal concerns. This makes qualified appraisers all the more important.

JULY MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in July '08 vs. '09 - $224,822 vs. $167,374 (25% Decrease)
Sold Homes in July '08 vs. '09 -773 vs. 953 (23% Increase)
# of Foreclosures and Pre-Foreclosures Sold in July '08 vs. '09 - 371 vs. 639 (72% Increase)
Avg. Loan Percentage Rate in August 2009 - 5.33% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING
4665 N. Bryan Ave., Fresno, CA 93723

$540,000

4 Bedrooms

2.75 Bathrooms

2,543 sq. ft.

2 Acres! This lovely two-story custom built home features extra-deep 3-car garage, covered RV parking with tack area, pool with deck jets & large horse set up with sprinkled sand arena. Also includes detached mother-in-law quarters with access to a 1-car garage, & include a bedroom, living area & half bathroom.

Click here for more info on this 4665 N. Bryan!

Holding Pattern in Fresno Real Estate

Harold Penner (Guarantee Real Estate) — Wed, 22 Jul 2009 15:58:34 -0700

HAROLD PENNER: Fresno Real Estate Market Analysis
Holding Pattern in Fresno Real Estate

For the past few months, the local Fresno real estate market has been in a type of holding pattern. The number of active foreclosures reduced by over two-thirds in the past six months leveling out around 450 active foreclosures beginning in May 2009. Pricing in homes under $250,000 has been slightly rising, but overall the number of sold properties and the average pricing of those homes has remained relatively steady for the past 4 months.

There is plenty of chatter and predictions for when the flood of foreclosures will return. But, for now, one of the points for first time homebuyers to remember is that federal tax credits will only apply for homes purchased before November, 30, 2009. The reduction in foreclosures has meant increased competition for homes coming on the market. Buyers need to act fast and aggressively in order to get the homes they are interested in before they miss this window.

For sellers interested in taking advantage of this time, here are some suggestions for enhancing your home (excerpt from RealtyTimes.com):

1. Go green. Energy efficient products and household goods are attractive to buyers. Renovations or replacements that help make the house more energy efficient are popular. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.

2. Crown molding and wider baseboards. Some homeowners are shy to experiment with this, especially if they live in a small home, but it can be very attractive in any size home. Wider baseboard. The measly baseboard that builders often use in tract homes doesn't draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life. Also, framing windows and doors helps complete the look of a room.

3. Textured paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colors and textures wisely. Don't get carried away with a color you love (e.g. purple walls-I've seen it in a home for sale). Remember, that you want your home to appeal to the masses. You can always paint your new home purple-and then change it when it comes time to sell it!

4. Improved flooring. Wood, tile, and new carpet can be a showstopper. But if the flooring is chipped, torn, or dirty, you'll get the opposite reaction from buyers. They'll think your home hasn't been cared for properly which could result in a lower offer -- or no sale at all.

Click to view complete article

JUNE MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in June '08 vs. '09 - $232,076 vs. $164,118 (30% Decrease)
Sold Homes in June '08 vs. '09 -675 vs. 978 (45% Increase)
# of Foreclosures and Pre-Foreclosures Sold in June '08 vs. '09 - 371 vs. 663 (79% Increase)
Avg. Loan Percentage Rate in July 2009 - 5.13% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING
2243 W. Magill Ave., Fresno, CA 93711

$850,000

5 Bedrooms

4.5 Bathrooms

4,175 sq. ft.

Over Half Acre! Prime northwest Fresno location near Herndon and Van Ness, this 1991 built home includes 3 car garage, RV access and huge yard with pool. With over 4,000 square feet of living space, vaulted ceilings, marble flooring and open layout, this home is ideal for entertaining.

Click here for more info on this home!

Fresno California Real Estate - Bottoming Out?

Harold Penner (Guarantee Real Estate) — Fri, 10 Apr 2009 12:25:32 -0700

HAROLD PENNER: Fresno Real Estate Market Analysis
Fresno Real Estate - Bottoming Out?

During the past 30 days, there has been a marked change in Fresno and Clovis, California real estate. Most notable is the marked decrease in homes for sale in Fresno County in all categories (short sale, foreclosure and seller-owned homes).
The most dramatic is the reduction of foreclosure properties which have been steadily rising for the past 2 years. The average number of available foreclosures in Fresno and Madera County climbed throughout 2008 and in January 2009 averaged 1500 homes on the market. In February, that number dropped to 1,231 homes and in March it dropped further to 884 homes.

Now, there are some national trends that could have effected this drop and it is possible that this is just a blip in our real estate numbers. One of those trends is that some major banks had implemented a "foreclosure moratorium" in which they temporarily delayed processing upcoming foreclosure properties while determining if new legislation would be beneficial for their bank and their homeowners. So, the drop in foreclosures could be attributed to that. These moratoriums have concluded so we will be watching next month how that effects our foreclosure numbers.

Another uncertainty is how federal incentives such as the first time home buyer tax credit, loan modification assistance and other upcoming programs will impact local real estate.

But, here are the reasons for why I'm becoming increasingly convinced that Fresno real estate has reached the bottom.

First, there are less homes available in all categories, not just foreclosure properties.

Second, even though there are less homes available, the number of sales in all categories is increasing. In February 2009, there were 457 foreclosures, 52 short sales and 119 seller-owned homes that were sold in Fresno County. In March 2009, despite there being fewer choices, there were 536 foreclosures, 73 short sales and 203 seller-owned homes sold in Fresno County. Even more telling, there are more pending properties in escrow today than have been sold in the past 3 months combined. So, this trend of increased sales is continuing.

So, what does this mean for you?

Sellers -
This is the ideal time to upgrade your home. In the past months I have advised sellers to wait until their house sells to begin looking to buy. There wasn't enough demand for houses to ensure that homes would sell quickly.

But, with the current market conditions you can now search for homes and sell your own concurrently. You will be selling your home for a lower price, but then buying another for a similarly low price. The difference is that right now, you can sell with ease.

This will not always be true. Historically, the Fresno market experiences sharp increases or decreases in prices and then settles into a plateau in which price and demand do not adjust for between 5-10 years. While we cannot guarantee that this pattern will repeat for this real estate cycle, it is likely to do so. Right now sellers will sell and buy low, but they can do so quickly with minimal carrying costs. Once our market reaches that price plateau, there will be increased competition, longer amounts of time on the market and more incentives offered by sellers in order to attract buyers.

Sellers - Click to request Free Assessment of the value of your home.

Buyers -
I am advising all my buyers to actively look and buy quickly to take advantage of the current prices. This is especially true for first time home buyers who qualify for the federal tax credits. Those will only apply to homes purchased and closed before November 2009.

Buyers - Click to request custom online search of available homes!

MARCH MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in March '08 vs. '09 - $261,613 vs. $193,192 (40% Decrease)
Sold Homes in March '08 vs. '09 - 388 vs. 962 (Doubled)
# of Foreclosures and Pre-Foreclosures Sold in March '08 vs. '09 - 185 vs. 746 (Over 600% Increase)
Avg. Loan Percentage Rate in April 2009 - 5.0% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.
Click here to visit HomesInFresno.com

FEATURED LISTING
3594 W. Buena Vista Avenue, Fresno, CA 93711

$945,000

4 Bedrooms

3.5 Bathrooms

3,528 sq. ft.

Sweeping Views! Featuring spectacular views of the bluffs and meticulous greens of the San Joaquin Country Club this home is a rare find. In addition to three spacious bedrooms, this home features private guest quarters with a separate entrance. Large picture windows provide ample opportunity to appreciate the nearly ½ acre lot featuring pool and multiple entertaining areas. A comfortable and peaceful escape that should not be missed.
View Virtual Tour of 3594 W. Buena Vista!

Obama Policy Implications for Fresno Homeowners

Harold Penner (Guarantee Real Estate) — Thu, 12 Mar 2009 12:15:20 -0700

HAROLD PENNER: Fresno, California Real Estate Market Analysis

Obama Policy Implications for Fresno Homeowners

On March 4, 2009, the U.S. Treasury Department released guidelines for a new program to assist homeowners. Here are some of the basics of that program:

View U.S. Treasury Press Release

Refinancing Assistance for Freddie Mac and Fannie Mae Loans:

Typically, owners cannot refinance unless their loan is 80% or lower of current market value. So, for example, if your home is currently worth $200,000, you need to owe less than $160,000 in order to refinance. With this new program, some homeowners with Freddie Mac or Fannie Mae loans who are current with their payments may be able to refinance as long as their first mortgage is similar or lower than the current market value. This is possible between now and July 2010.

Home Affordable Modification Program:

Assists up to 3 to 4 million at risk homeowners by reducing monthly mortgage payments through interest rate reduction, extension of the term of loan (i.e. 40 year loan instead of 30) or reducing the principal balance. The government will be sharing some of the costs for modifying the loan. The goal would be to adjust payments to between 31% and 38% of the homeowner’s gross income. So, for example, if homeowners currently earn $50,000 annually, the bank and government may be able to adjust your payments to as low as $1,300 per month (PITI).

The key to this program is that each lender must voluntarily choose to participate. Banks may or may not determine that there are sufficient government incentives provided to justify refinancing. And homeowners must request to be reviewed for this program and demonstrate a financial hardship to qualify. If you feel you qualify, you should contact your lender directly. You can also speak to a HUD approved counselor for free. Click here to find Fresno HUD approved counselors

FEBRUARY REAL ESTATE MARKET STATISTICS* - Fresno County, California and Madera County, California

* Average Price of Sold Homes in February '08 vs. '09 - $256,519 vs. $148,749 (43% Decrease)

* Sold Homes in February '08 vs. '09 - 388 vs. 716 (Almost Double)

* # of Foreclosures and Pre-Foreclosures Sold in February '08 vs. '09 - 139 vs. 608 (Increased over 4 times)

* Avg. Loan Percentage Rate in March '09 – 5.0% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING

1272 Chennault Avenue, Clovis California

# $244,000

# 3 Bedrooms

# 2 Bathrooms

# 1,680 sq. ft.

3 Car Garage! Built in 2000, this Gary McDonald home is located on a Clovis corner lot near Buchanan High School. Recently updated and freshly painted interior with mature landscaping and fruit trees, this is a comfortable, seller-owned home that is available for move-in!

View 1272 Chennault Avenue!

Stars are Aligned For Buyers: Fresno and Clovis Real Estate Market Conditions

Harold Penner (Guarantee Real Estate) — Mon, 19 Jan 2009 20:09:12 -0800

HAROLD PENNER: Fresno Real Estate Market Analysis
Stars are Aligned For Buyers: Fresno and Clovis Real Estate Market Conditions

2009 is going to be one interesting year for Fresno and Clovis Real Estate. Looking at the local statistics, while I can't predict that the bottom of the market has come, I do know that 2009 buyers are going to look back at this time and be thankful that they bought.

There are a number of reasons for this:

Foreclosures Are Still Rising

2008 began with an average of 900 foreclosure properties on the market in Fresno and Madera , California and ended with nearly 1500. Even more telling, only 28% of sales in January 2008 were foreclosures. When we ended the year, December 2008 sales were comprised of 64% foreclosures.

Nationally, news has been buzzing with the latest in the search for the right approach to solve the problem of foreclosures. One particularly interesting report tracked the percentage of homeowners who continued to miss payments after receiving refinancing (lower interest rate, lower payments, etc.) from their banks. 37% had again missed one payment after 3 months and 55% missed at least one payment after six months. This would suggest that refinancing may not be the answer.

Click Here to view this report.

The bottom line is that as long as foreclosures increase the price of homes will continue to be affordable and now will be a wise time to buy.

Interest Rates Lowest in 37 Years

In an effort to encourage home buying and refinancing, home loans rates are now historically low and currently hover around 5.0% for your primary residence.

Click Here for the latest mortgage rate news.

TIPS FOR 2009

Consider Refinancing
If you are currently at least 6.5% or higher on your rate and you intend to own your home for at least three more years, it may be wise to consider refinancing. First call the 800 number on your loan statements and ask for their refinancing department. You may get a better package by staying with your current bank and dealing with them directly. Then contact a lender and compare. If you would like a recommendation for a local lender, please let me know.

Consider Buying Rental Property
Home prices have fallen in some areas to the pre-housing boom of 2002. Yet, rental rates remain steady in Fresno and Clovis. A high rate of foreclosures means that many new renters are looking for homes.
At the same time, we are once again back to the days where purchasing an investment home means immediate cash flow from rental payments. This means an automatic and steady income for investors. If you would like to be emailed a selection of rental property investments, please contact me at the information below.

Check your Equity Lines
For obvious reasons, many homeowners are considering buying an investment or rental home for supplemental income. In some cases, they intend to use an equity line from their current home as a down payment. What they don't realize is that many banks are removing that option based on adjusted values of the home. Check with your bank to see whether yours is still available. Otherwise, for an investment property, you will need a 20% down payment in almost all cases.

To learn more about purchasing or selling a home, please contact our office at (559) 322-7777 or email hpinfo@homesinfresno.com

2008 STATISTICS AT A GLANCE*- Fresno and Madera Counties

Avg. Sales Price:

Number of Active Bank-owned Properties

Number of Active Short Sales Properties

Average Listing Price (Resale)

Average Listing Price (Foreclosure)

Average Selling Price (Resale)

Average Selling Price (Foreclosure)

Total Homes Sold

2008 Summary

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING
1397 E. Waldon Way

$1,295,000

4 Bedrooms

4 1/2 Bathrooms

4,734 sq. ft.

Gorgeous Estate! This nearly half-acre estate brings new meaning to the term "outdoor living." Every inch of this stunning Gary McDonald built home exudes the highest level of custom, quality worksmanship. An infinity edge slated-lined pool with cascading waterfall, life sized chess set, custom built arbor, putting green, fire pit, outdoor kitchen, and sport court are just some of features offered.
Click here to learn more about this property!

A Buyer's Market: Fresno and Clovis Real Estate

Harold Penner (Guarantee Real Estate) — Wed, 10 Dec 2008 18:44:49 -0800

HAROLD PENNER: Fresno Real Estate Market Analysis
A Buyer's Market: Fresno and Clovis Real Estate

Despite a tough year for real estate, I have found many things to be thankful for this holiday season. For my office, work has been steady despite a rapidly changing local market. One of the primary reasons for that is the versality and expertise of my staff. In a world of job related lay-offs and declining business opportunities, the ability to maintain a full staff is a testament to their value in customer service and escrow management.

But, there have been some adjustments. During the past 20 years, my typical clientele has been comprised of approximately 70% sellers and 30% buyers. But, with the change to a buyer's market and the flood of bank-owned homes, we have been able to assist many first time home buyers and investors, which adjusted that ratio to 60% seller and 40% buyers. In addition, I developed a specialty in closing short sale (pre-foreclosure) homes.

There are clear reasons why investors and first time home buyers have been taking advantage of the current market:

Price:
Between May 2008 and November 2008, the average price of sold homes in Fresno and Madera County has dropped from $243,899 to $178,769. This is a 27% decrease in six months.

Increasing Demand:
There are over 1000 less homes on the market then in 2007. Yet, 30% more homes were sold in 2008 to date then last year. Demand has been building throughout 2008.

Low Interest Rates:
Interest rates are currently at their lowest point since January 2008 and currently average 5.5%.

Click Here to view the latest news on interest rates.

Click Here if would like to sign up to have some home options emailed to you as they appear on the market.

Also, my January newsletter will be a 2008 year end analysis of Fresno and Clovis real estate conditions including expectations for the upcoming year.

To learn more about purchasing or selling a home, please contact our office at (559) 322-7777 or email hpinfo@homesinfresno.com

NOVEMBER MARKET STATISTICS - Fresno and Madera Counties

Average Price of Sold Homes in November '07 vs. '08 - $294,407 vs. $178,196 (40% Decrease)
Sold Homes in November '07 vs. '08 - 329 vs. 642 (Nearly twice the amount of 2007)
# of Foreclosures and Pre-Foreclosures Sold in November '07 vs. '08 - 79 vs. 454 (Increased over 5 times)
Avg. Loan Percentage Rate in November '08 - 5.875% (30 Year Fixed)

Click here to visit HomesInFresno.com

Positive News for Short Sales in Fresno and Clovis

Harold Penner (Guarantee Real Estate) — Fri, 07 Nov 2008 14:03:31 -0800

HAROLD PENNER: Fresno Real Estate Market Analysis
Positive News for Short Sales in Fresno and Clovis

There have been some interesting trends with the short sale market in the Fresno and Clovis area in the past few months.

Definitions:

Short Sale:
Short Sales occur when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed. The primary advantage of a short sale is that a borrower can typically has more protection against credit scores reductions and are eligible to purchase a home more quickly than those experiencing a foreclosure.
Foreclosure:
Often referred to as an REO (Real Estate Owned), this status indicates the property is now owned by the lender or bank as a result of a foreclosure.

Current Market Trends:

There are some disadvantages to placing offers on short sales in the Fresno and Madera counties. In October 2008, in Fresno and Madera County, 31% of all listed foreclosures successfully closed versus only 6% of listed short sales.

The primary reason that short sales do not successfully close is due to delays in closings. Most banks are not currently equipped to process short sales quickly enough for buyers. By the time an acceptance has come the buyer has moved on to another property. But, if that processing time could be improved, short sales would be beneficial situation for banks, sellers and buyers given the alternative of foreclosures.

Click Here to view more details regarding advantages and disadvantages of purchasing short sales.

Fall 2008 Short Sale Trends:
But, it would seem that those numbers may be improving in the future for a number of reasons:

Statewide Short Sale Statistics - The State of California requires mortgage companies operating in the state to submit results regarding the processing of foreclosure, short sale and refinancing claims. The most recent statistics published (September 2008) show a modest increase from 5% in January 2008 of loan adjustments being short sales to 13%.

The ratio of successful short sales vs. foreclosures is also improving with 7% ratio in January 2008 versus 28% ratio in September 2008. Banks are accepting more short sales on a statewide level.

Click Here to view complete results.
Bank Short Sale Policy Improvements - Recently a loss mitigator from Wells Fargo spoke in Fresno regarding the current trends with short sales. One of the most interesting points was the efforts of Wells Fargo to increase the number of personnel and simplify the short sale process. The bank will be striving to shorten the response time from what was months to within 30 days of receiving an offer.
Legislative Changes - SB 1055 was passed recently by the State of California. It provides tax relief for short sales that close between January 1, 2007 and December 31, 2008. Sellers would not be responsible for paying the state taxes of the difference between their loan amount and the selling price of their short sale. For more details, please contact your tax professional.
Personal Experience - Anecdotally, I have witnessed an encouraging change in the response time of banks in the past month or two. Short sales that have been lingering for months with offers are finally being given attention and are closing. This includes short sales with banks such as: Countrywide, Wells Fargo, Home Eq, Saxon Mortgage, Citimortgage and Indymac.

Click Here for free assessment of whether your home qualifies for a short sale.

To learn more about purchasing or selling a home, please contact our office at (559) 322-7777 or email hpinfo@homesinfresno.com

OCTOBER MARKET STATISTICS - Fresno and Madera Counties

Average Price of Sold Homes in October '07 vs. '08 - $314,726 vs. $194,506
(38% Decrease)
Sold Homes in October '07 vs. '08 - 373 vs. 793 (Over twice the amount of 2007)
# of Foreclosures and Pre-Foreclosures Sold in October '07 vs. '08 - 79 vs. 532 (Increased over 6 times)
Avg. Loan Percentage Rate in November '08 - 6.375% (30 Year Fixed)

Click here to visit HomesInFresno.com

FEATURED LISTING
5029 E. Shepherd

$486,000

4 Bedrooms

3 Bathrooms

3,036 sq. ft.

5 Car Garage! Nearly three acres at the corner of Shepherd and Sunnyside, this Clovis home features a horse stall, seasonal pond, and well. With over 3,000 square feet and 5 car garage, this is a home ideal for peaceful, country living with the conveniences of the city nearby.

Click here to learn more about this property!

Refinancing Hope for Homeowners in Distress

Harold Penner (Guarantee Real Estate) — Thu, 16 Oct 2008 15:28:27 -0700

HAROLD PENNER: Fresno Real Estate Market Analysis
Refinancing Hope for Homeowners in Distress

New Refinancing Plan
On October 1, 2008, the FHA "Hope for Homeowners" plan was implemented. If you meet the guidelines outlined below you may be eligible to refinance your current mortgage. One key condition, however, is that your current lender of your mortgage must agree to absorb the loss of the difference between the current loan balance and 90 % of the current market value.

Borrowers must meet the following eligibility criteria:

Home must be occupied by the owner of the property
Their mortgage must have originated on or before January 1, 2008;
Their mortgage debt-to-income must be at least 31 percent;
They cannot afford their current loan;
They did not intentionally miss mortgage payments; and
They do not own second homes.

Features of FHA-insured loans under the new program include:

30-year, fixed rate mortgage;
Maximum 90 percent loan-to-value ratio;
No prepayment penalties;
$550,440 maximum mortgage amount;
Extinguishment of any subordinate liens; and
New home appraisals from FHA-approved appraisers.

If you believe you may qualify for this refinancing opportunity, you should start by contacting your current lender. Explain why believe you qualify and ask whether they would consider this refinancing option.

For more information visit: www.HUD.gov

FHA New Loan Changes
For those interested in buying a home, October 1, 2008 brought changes to the minimum qualifications for new FHA loans. These changes include:

Minimum down payment for FHA Loans - raised to 3.5% from 3%
Currently up front mortgage insurance premiums raised to 1.5%. Previously, borrowers with good credit scores could qualify for 1.25%.
The largest change is the elimination of non-profit contributions being admissible for down payment assistance. While programs such as the Nehemiah program are actively lobbying against this change, these third party programs can no longer be combined with an FHA loan.

To receive recommendations regarding qualified FHA lenders or to learn more about purchasing a home, please contact our office at (559) 322-7777 or email hpinfo@homesinfresno.com

SEPTEMBER MARKET STATISTICS - Fresno and Madera Counties

Average Price of Sold Homes in September ‘07 vs. ‘08 - $315,940 vs. $206,451
(35% Decrease)
Sold Homes in September ‘07 vs. ‘08 - 724 vs. 350 (Over twice the amount of 2007)
# of Foreclosures and Pre-Foreclosures Sold in September ‘07 vs. ‘08 - 51 vs. 451 (Increased by 9 times)
Avg. Loan Percentage Rate in October ‘08 - 6.375% (30 Year Fixed)

Click here to visit HomesInFresno.com

FEATURED LISTING
2370 E. Fir Ave.

$288,500

3 Bedrooms

2 1/2 Bathrooms

1,745 sq. ft.

Custom Backyard Landscaping! A Gary McDonald built home, with corian countertops and whirlpool tub, across from the community pool and spa. Elegant, solid oak front door, tile roof, custom backyard landscaping with 2 trellis, an arbor, fountain and tuff stuff custom shed.

Click here to learn more about this property!