Julie's Blog

Worst to best with a flaw

Julie Jalone (MagnumOne Realty) — Tue, 28 Apr 2009 11:07:39 -0700

Two years ago when a client told me they wanted me to short sale their home and their lender was Wells Fargo, I would visibly cringe. Dealing with Wells Fargo in those days was a nightmare. They didn't have sufficient staffing to handle the requests, their process was weak and it took so long that when you got the approval the buyer had moved on so you had to start all over and nobody at Wells cared. Today they are one of the fastest, they make status update calls to you and often you can deal with the negotiator through email.

There flaw is bizarre. When they have more than one loan on a property they have not figured out how to let one negotiator manage their interest. You have to deal with two different departments, each with their own interest so they double the work for themselves and believe it or not the junior lien holder part of Wells Fargo often kills the deal because they demand more money than the other department is willing to pay for the lien release. They should be embarrassed!

If you want to read more about short sale negotiations, check out my weekly real estate column, "Getting Short Sales Done," over at Rocklin and Roseville Today and reprinted at Sacramento Today.

Kentuckyanna

Julie Jalone (MagnumOne Realty) — Wed, 15 Apr 2009 09:48:20 -0700

It is always fun to get away for a few days and even better when you return and appreciate home. Last week we traveled to Elizabethtown, Kentucky to visit Michael's son Mark and his family. I enjoyed spending time with them and seeing Kentucky.

I heard about the terrible ice storm they had this past winter but until I saw the devastation it caused I didn't understand the impact. Kentucky is trees; almost every road is cut through a forest of trees or rolling green hills surrounded by trees. Almost every one of those trees was damaged. Now you see broken limbs jutting out in odd directions or piled high on the ground. The cleanup is going to take a long time and the effects will be seen for many years to come.

We did do some work on the Bourbon Trail and I enjoyed that but they need to learn from California wineries how to do tastings! I am not much of a bourbon drinker so was interested in learning what I tasted and why I enjoyed one more than another. Hard to do when you drive for 30 minutes and get one sip.

The real estate market where I was in Northern Kentucky or "Kentuckyanna" is doing alright. They didn't have the huge run-up in the early 2000's so have not seen the kind of large price declines we have had here in the Sacramento area. Interestingly, people there seem to take a longer view of real estate and their home values. They are not as concerned about the value today, because they, on average, live in the same house longer than we do in California.

Should you walk away?

Julie Jalone (MagnumOne Realty) — Tue, 17 Mar 2009 12:58:47 -0700

If your home is worth less than you owe, the payments are killing you and have a lender who refuses to help what will happen if you walk away? Walking away is letting the bank foreclose, giving them the keys or avoiding a foreclosure by doing a short sale. If you do one of these things how bad will it be for you? Will you get sued by your bank? Will you ever be able to get credit again? How much will Uncle Sam and the IRS want from you? It may not be as bad as you imagine. Check out my weekly column, "What are the consequences of walking away?" over at Rocklin & Roseville Today and find out.

Other Items: Happy St. Patrick's Day! I hope you have the luck of the Irish today and all year long!

I have been reading reports about a new California bill that may require banks to wait longer before foreclosing on mortgage obligations. Last year it was taking some banks up to 9 months before they even started the foreclosure process. Today they are responding much faster to delinquent loans so this bill may be helpful to Sacramento homeowners who want to qualify for a loan modification, refinance program or who want to avoid foreclosure by doing a short sale. Check back in the next day or so and I will provide more information.

Just a bit angry today!

Julie Jalone (MagnumOne Realty) — Wed, 04 Mar 2009 12:40:46 -0800

This morning I read an article in the Sacramento Bee about the former executives of Countrywide that got rich on bonuses and golden parachutes after they made tons of questionable loans which we are all now paying for. Believe it or not they have taken their wealth and created a company that buys up bad loans from failed banks. They are paying pennies on dollar for these loans and making a killing on collecting. The economy is in the tank, the everyday guy is suffering and these guys are making millions again!

Why do I feel that when this is all said and done the people that will have prospered are the ones who helped create the problem and the borrowers who made risky and poor financial decisions to buy homes they couldn't afford? Those of us that bought homes we could afford and are making our monthly payments, even when our income has declined and other costs have skyrocketed, will maybe just be lucky get through this recession.

Today, another Washington scheme was announced called the "Making Homes Affordable" initiative. I am not saying the housing market and homeowners shouldn't get help but there are now so many plans and programs it is confusing and most of my clients, who we help avoid foreclosure, say when they call their lenders and ask about these Government sponsored plans the answer is generally something about we don't care what you read, send us money or we will foreclose.

There seems to be a breakdown in the communication between Washington and the lenders. Why when we are giving banks billions don't we get commitments to follow the program? You don't need to be a rocket scientist to understand "make loans and help borrowers."

If you want a bit more detail on the latest plan to help you keep your house, check out my column, "Dizzy in Sacramento" over at Rocklin & Roseville Today.

Call it What You Will

Julie Jalone (MagnumOne Realty) — Tue, 24 Feb 2009 11:00:52 -0800

In the past two weeks we have seen the Federal stimulus bill, the Homeowner Affordability and Stability Plan and our new California budget which as some provisions to help the housing market. What are these, how do they work and have we finally got all the players headed in the same direction? Take a look at my local real estate column, "Stimulus, Recovery, Stability coming to Sacramento?" over at Rocklin & Roseville Today.

I have had a number of emails in the past few days from some of my readers and I apologize for dropping off a bit in the past few weeks. We have been very busy and I have been feeling a bit under the weather but hopefully I will get back to a more normal schedule and get a few more posts up over the next few days.

Escape from it All!

Julie Jalone (MagnumOne Realty) — Fri, 13 Feb 2009 09:08:40 -0800

Here is the view from a listing I have coming on the market soon. This is a unique home in Auburn only minutes from the freeway but a world away from the city and people. There is nothing "track" about this home and it will take a equally unique buyer to make this work. This is not a family home and is best suited for a working couple who want an alternative style home or it could be a great weekend escape pad for someone from San Francisco or the Bay Area.

If you or someone you know might be interested in learning more about this unique property let me know and I will send you more information.

Over at Rocklin & Roseville Today my weekly column this week is, "What is likely to be in the final stimulus bill?"

Important Information for Struggling Sacramento Area Homeowners

Julie Jalone (MagnumOne Realty) — Sat, 07 Feb 2009 10:38:55 -0800

There have been some significant changes with lenders that are catching financially strapped homeowners unaware and reducing their alternatives to avoid a foreclosure. If you or someone you know is not making their monthly mortgage payments and thinking they can wait several months before asking for a loan modification or doing a short sale, those days are over. Check out my column over at Rocklin & Roseville Today or at Sacramento Today, "Short Sale Market Changes in Sacramento."

Busy Sacramento Week

Julie Jalone (MagnumOne Realty) — Thu, 05 Feb 2009 16:31:09 -0800

This past week has been very busy and adds to my belief the real estate market is weather driven or at least it seems that way to me. Every time we get some warm sunny days, I am too busy to spend much time outside! It is nice to see the Sacramento real estate market continuing being active, even if the transactions are always difficult to get closed.

During the past week I have taken three new listings. The first is a very nice home in the Natomas area of Sacramento. This home is just a year old, has tons of upgrades and has been very well cared for. If you or someone you know is looking to buy in this area take a look at 510 Dnieper River Way.

The second listing is also in the Natomas area but since we have some additional work to complete before it is ready to show it is not officially on the market but keep an eye out for it.

The third listing we took this week is unique for a couple of reasons. First, this is a spectacular home on 2 plus acres in Newcastle and it is one the seller never anticipated having to sell so it has been painstakingly remodeled and shows like a dream. These sellers thought they were working with their lender and anticipated a loan modification that would allow them to stay in their home. When negotiations failed the lender quickly filed a notice of default and has set a sale date for later this month. I don't normally like to work under such pressure but we have had success with this lender and feel if we can get an offer in quickly, we have a chance to delay the sale and avoid foreclosure. For this reason we have priced the home super aggressively. Take a look at 1001 Kentucky Greens Way, and let me know what you think.

I am looking out the window and seeming clouds moving in. Would you know, just as I am catching up!

Buying a short sale listing

Julie Jalone (MagnumOne Realty) — Tue, 27 Jan 2009 10:56:51 -0800

What do I need to know about buying a short sale listing? This was essentially the question one of my readers sent me last week. I have written a number of articles including "Six Steps to a Successful Short Sale" and "Short Sale Success," on using short sales to avoid foreclosure but have not spent much time addressing the buyer in a short sale transaction.

If you or someone you know is considering buying a home in the Sacramento and Roseville area you will more than likely look at one or more short sale listings. What should you know and be prepared for if a short sale turns out to be the home of your dreams? Check out my Rocklin & Roseville Today column, "Short Sale Question & Answer," and read what I have to say on the subject.

Other News: Getting some rain last week was great but I am enjoying the sun this week and using its energy to keep up with everything that is going on in the Sacramento real estate market. We have some new listings that will be on the market in the next week or so plus several clients who are actively looking for homes.

Stop Sacramento Foreclosures

Julie Jalone (MagnumOne Realty) — Fri, 23 Jan 2009 12:02:08 -0800

A total of 523,624 California properties received foreclosure filings, including default notices, auction sale notices and repossessions in 2008. This was a 110 percent increase from 2007 and almost five times as many compared to 2006.

The city Stockton registered the highest foreclosure rate in California and the nation with a 9.46 percent of its housing receiving a foreclosure filing during the year. Other California cities in the nation's 100 largest metropolitan areas in 2008 included Riverside-San Bernardino at number 3, Bakersfield at number 4 and our own Sacramento at number 9.

Sacramento foreclosure filings impacted one in 19 properties or 5.2 percent of all homes. This compares to a rate of one in 54 across the country.

If you or someone you know is struggling to make ends meet and are unable to continue to make mortgage payments on a home where the value is now less than the loan amount, call us. We can help you avoid foreclosure and get you back on the road to financial independence. We have been helping stop Sacramento foreclosures for two years and have an experienced team to guide you through the Short Sale or loan modification process.

If you are interested in learning more about short sales see one of my articles on the subject, "Six Steps to a Successful Short Sale."

Sacramento Predictions

Julie Jalone (MagnumOne Realty) — Mon, 19 Jan 2009 12:59:53 -0800

I was looking at the number of homes currently on the Sacramento area market, how inventory has changed in the past year and the impact on prices and value with so many homes for sale in preparation for writing my weekly columns for Rocklin & Roseville Today and Sacramento Today. I had promised myself I would avoid making predictions in such turbulent times but somehow when you write about how many Sacramento homes for sale last year and this year it seems impossible not to say where you believe this number will go by year-end. If you are interested in seeing what I had to say on the subject check out may latest article, "Sacramento Year End Inventory."

Martin Luther King Day: Pretty amazing to be celebrating the life of Dr. King and his efforts to break down barriers caused by race on the day before we inaugurate the first African-American President, Barack Obama. Regardless of you political party affiliations and who you voted for tomorrow is a new beginning for America. If there is strength in our culture it comes from optimism and hope that we share for a better tomorrow.

Positive News in Sacramento Forecast

Julie Jalone (MagnumOne Realty) — Tue, 13 Jan 2009 08:58:56 -0800

As soon as the holidays were behind us it seems like the media has again focused on the economy and in particular the negatives. I don't know about you but when I hear too much negative news it impacts my mental attitude and slows me down. There are some bright spots in regards the Sacramento and the real estate market. I think we should understand the overall situation but take the time to remind ourselves of what is positive.

In my weekly real estate column over at Rocklin & Roseville Today, "Sacramento Economic Forecast," I highlight some of the strengths of our Sacramento economy and the real estate market positives that were reported in the Sacramento Business Review's economic forecast. I think they are worth thinking about on this cold winter morning.

Other: Yesterday, I received a phone call from a homeowner asking me to help them avoid foreclosure on a property in Rocklin. They were transferred to Minnesota and have been renting the home for the past year but the tenants are now moving out and they cannot afford to continue to make the payments. This is a typical of the kind of requests I get so I started to get to work.

Using Twitter to stay in touch

Julie Jalone (MagnumOne Realty) — Tue, 06 Jan 2009 13:21:35 -0800

I have been using twitter for almost 2 years now and it is one of the social networking tools I enjoy the most. It is a flow of short messages from members all around the world and allows users to follow others and read what they have to say as the day progresses. You can carry on conversations, ask questions, get directions and always find someone who can cheer you up. As of today I am following 2,257 users and have 2,102 followers. Some of my twitter colleagues are news organizations such as the Sacramento Bee, CNN and Sacramento Traffic Alerts. You can find and follow a wide range of celebrities such as Madonna and Britney Spears and even get updates from Barack Obama. Most users are just like me, everyday people who do their jobs and enjoy the internet and staying in touch. There is a growing number of spamers using twitter but they are easily controlled.

I recently used twitter to ask some of my "followers," who are real estate agents; about their local markets and found some similarities with what is happening in our Sacramento area market. Check out my column today at Rocklin & Roseville Today, "Tweeting Real Estate News" to see what I learned.

If you are not familiar with Twitter check it out at www.twitter.com. If you end up joining the thousands of other who are using twitter, follow me at twitter.com/JulieJ and I will follow you back.

Nothing new in Sacramento or Roseville

Julie Jalone (MagnumOne Realty) — Sat, 03 Jan 2009 13:19:18 -0800

I started to blog about some of the November results for our local Sacramento real estate market and quickly became bored. For anyone who reads a newspaper or listens to the news there is nothing new to report. Generally sales are up, median prices and average price per square foot are down. About the only thing of much interest is the number of default filings have dropped, but may be the result of a new state law requiring lenders to contact homeowners who are delinquent on the payments, then wait 30 days before filing a default notice.

As we move into 2009 the inventory of homes for sale has continued the slow decline from the highs we experienced in the summer of 2007 when it was reported by HousingTracker that there were over 18,000 homes for sale in what they define as the Sacramento area. Even with the increased number of foreclosures the inventory of homes has continued to decline and as of mid-December stood at 12,628 down almost 23 percent from a year ago and down 5.9 percent in the past month.

As we move into the spring selling season I would expect to see the decline in homes on the market slow or even increase. There are still way too many houses on the market for the number of buyers but the good news is we are headed in the right direction to achieve a balanced market and some price stability.

If you are interested in more specific numbers about the Sacramento, Roseville or other local communities send me an email to juliej@jalone.com and I would be happy to answer.

Where are we going?

Julie Jalone (MagnumOne Realty) — Wed, 31 Dec 2008 12:03:36 -0800

Happy New Year! Here we are at the final day in 2008 and looking forward to the hope of a new year. Whatever your plans are for this evening, be careful on the roads, last night was super foggy here in the Roseville area and will most like not be much better tonight.

There were some great times and occurrences this past year but it was also one of the most difficult years I have had in real estate. There were plenty of clients but getting transactions completed was more difficult than in years past and much more difficult than they should have been. Check out my weekly column over at Rocklin & Roseville Today, "Sacramento Real Estate: Where are we going?" and see where I think our Sacramento real estate market is headed in 2009.

Let's Say Thanks to the Troops

Julie Jalone (MagnumOne Realty) — Mon, 22 Dec 2008 07:49:26 -0800

Take a minute during this busy holiday season to recognize our U.S. Troops stationed overseas. Go to www.LetsSayThanks.com, where you can pick out a thank-you card. Xerox and the Let's Say Thank organization will print and send it.

All you have to do is click on your favorite design and either select a message or draft a personal note. The postcards are then printed by Xerox and mailed in care packages by military support organization Give2TheTroops®.

Wouldn't it be wonderful if the soldiers received a bunch of these? Whether you are for or against the war, our soldiers over there need to know we are behind them. This takes less than a minute and here is an example reply from one Soldier:

Thank you so much for the post card. It is so nice to receive things in the mail here. Some would not believe it but the simple good feeling of going to the company mail room and the clerk saying "Yes, you have mail" is an uplifting experience. Even if it's just a letter saying "hi" makes our day! Thanks again for your thoughts and prayers.

Please take the time and please take the time to pass it on for others to do. We can never say enough thank you's. Thanks for taking to time to support our military!

Rant: Service is key to short sale

Julie Jalone (MagnumOne Realty) — Thu, 18 Dec 2008 12:28:38 -0800

In today's competitive real estate services industry there is nothing more important than client service. I am referring to what may be called Realtor helpers such as title/escrow companies, home inspectors, lenders and others who help us get our transactions completed.

It is this group of professionals who can make closing a sale easy or a nightmare. Over the past two plus years we have been working with a number of clients who would like to avoid foreclosure/bankruptcy by having us negotiate a short sale with their lenders. Trust me when I say, this is not as easy as it sounds. It takes experience, time, sustained effort and on occasion some luck to get all the parties to the sale in agreement. Just this week we had all our "ducks in a row" on a short sale we have been working on for months and want to close this year so our clients can get on with their lives. Out of the blue, our escrow officer went lame on us! She told us something we have been doing for over two years with another escrow company is illegal and if she did it, she would be fired.

Believing we were not crazy, we checked with the other escrow/title company we do business with. They laughed and said showing the additional payment to the second lien holder contributed by the agents from their commission was a no problem. We immediately requested the transfer of the escrow.

The first escrow officer who said she would be fired, but wanting to keep the escrow, sent off estimated settlement sheets to the lenders and got approval. How could we go from "illegal...I'll be fired" to "...we got approval?"

I love the people in the industry who work with me and make my job easier, provide top notch service to my clients but there is no reason to use those who insist on operating with a "my way or the highway attitude." In today's market you don't get a second chance.

Can housing lead the way to recovery?

Julie Jalone (MagnumOne Realty) — Tue, 16 Dec 2008 12:32:37 -0800

If it was housing that led the economy to where it is today, "the tank," then it only stands to reason, housing can be the way to recovery. Sure there are other elements of the National economy that need tending but until we have some stability in housing the economy is not going to improve dramatically. Check out my column, "Next Steps Toward Recovery," over at Rocklin & Roseville Today.

Update on my last column, Sacramento Short Sale Tales: Although we have not closed this transaction, we did escalate our request and rational to the executive offices at Bank of America and this morning we got what we hope will be the approval that will allow our clients to complete their short sale and avoid foreclosure and bankruptcy.

You won't believe this!

Julie Jalone (MagnumOne Realty) — Wed, 10 Dec 2008 12:13:17 -0800

A good portion of the business we do at MagnumOne Realty is helping financially struggling Sacramento area homeowners avoid foreclosures by helping them qualify and negotiate with their lenders to accept less than they are owed by accepting a short sale. Lenders tend to treat us as the enemy even though we are helping them and the entire process can be long and arduous but we are good at them and there is a good deal of satisfaction when we complete a short sale and our clients can step away from payments they can no longer afford to pay and a debt that was greater than the value of the house they owned.

My column today over at Rocklin & Roseville Today, "Sacramento Short Sale Tales" is about a current deal we are working on with both Wells Fargo and Bank of America and will give you a flavor of what we have to deal with to complete one of these transactions.

BTW, if anyone has a good short sale contact at IndyMac and they actually answer their phone or email I would love to have it. We can't seem to get through to anyone there and they are not returning email or phone messages.

Are we going to lose our home?

Julie Jalone (MagnumOne Realty) — Thu, 04 Dec 2008 11:08:33 -0800

Just when I thought we might start seeing a decline in the number of homeowners who are facing foreclosure the next wave came crashing in. The new wave is a combination of more homeowners who have experienced a financial setback such as a lost job or reduced income combined with continuing declines in home values. A married couple with two incomes making their payments all of a sudden are struggling to when one of them loses their job have lost their option to sell their house, pay down credit card debt and move to more affordable housing because their home is worth less than they owe. Check out my weekly column, Sacramento Short Sales, over at Rocklin & Roseville Today for some of the reasons these homeowners and others should consider a short sale as an alternative to foreclosure.

Countrywide Short Sales

Julie Jalone (MagnumOne Realty) — Wed, 26 Nov 2008 12:17:13 -0800

Is anyone having any success negotiating with Countrywide on short sales? They seem to be totally disorganized and in state of confusion. By the time their negotiators get the appraisal on the property is stale and even then it goes into a black hole. We just lost another buyer who got tired of waiting.

Let me know if you are having the same experience or have suggestions for those of us who are struggling with Countrymess.

Lenders with a heart?

Julie Jalone (MagnumOne Realty) — Tue, 25 Nov 2008 12:02:53 -0800

Today I conclude my series of articles answering the question, is now the right time to buy a home in Sacramento? Today's final article is, "Do you know what you want in a home?" and can be seen over at Rocklin & Roseville Today in my real estate column. If you missed the previous articles and would like to read the entire series you can find it on my personal website.

This is a short holiday weekend and we have continued to be busy with Sacramento short sales. Most lenders, other than Countrywide, seem to have a pretty good process and appear to be working at getting as many closed before the end of the year. Countrywide seems confused and disorganized compared to other lenders and the impression we get is that they just don't care if the house goes to foreclosure. Bank of America better start paying attention and get the bleeding stopped or we will be seeing yet another bank bailout.

Speaking of foreclosures the folks at ING Direct, a large internet based lender, have warmed the cockles of our hearts this week by announcing they would suspend all evictions through January 15^th, "in the spirit of the holidays." They are going to toss them out after Christmas rather than before, once again proving there are big hearts in the mortgage lending business.

Thanks Jim!

Julie Jalone (MagnumOne Realty) — Sat, 22 Nov 2008 11:22:10 -0800

As much as I enjoy maintaining my blog there are days when I feel like I have to write a post and times when other tasks pressure me to publish and run. I was thinking about this earlier this week when I went to Mikie's parent-teacher conference. The subject was writing and how much he has improved since last year. We were looking at some of Mikie's writing and his teacher told Mikie he would be able to correct some of his mistakes if he took time to read what he wrote. She said, "All good writers read what they write."

I think sometimes I am guilty of letting spell-check do my reading. If there are no red, green or blue underlined words it must be good to go. This morning I got an email from a good friend on the East Coast who, I like to believe, reads my blog occasionally to see what we are doing out here. He wrote, "I just wanted you to know the latest, fourth blog should have been proofed by someone other than the spell check! ;-) FOURTH not FORTH!"

Thank you Jim, I am going to take your email as a queue to slow down, enjoy blogging and do more than spell-check before I publish. I won't promise there will not be errors or better ways to write something but you can be assured that I have read what I wrote.

How much can you pay for a home?

Julie Jalone (MagnumOne Realty) — Thu, 20 Nov 2008 10:41:42 -0800

Today I published my fourth in a series of five articles examining the question, Is now the right time to buy a home in Sacramento. You can read it in my real estate column, "How much can you pay for a home in Sacramento," over at Rocklin & Roseville Today.

I think the question, is now the right time to buy, is important in light of the current market and economic conditions. So far I have received some positive feedback on the series and hope it helps a few potential buyers make the right decision in regards to purchasing a home in Roseville, Sacramento or anywhere in the area. You can see the entire series of articles on my personal website, www.jalone.com. They are located on here.

As some of you know I am spending the week in Alaska. As much as I love living in the Roseville area, it is always nice to be back in The Last Frontier. This week it is very cold in Anchorage. Today is forecast to be the warmest since I have been here, 16 degrees. Yes, that is cold but it has been clear and very pretty too.

Back home the MagnumOne Realty office has been very busy, especially with some of our short sales. Dealing with the lenders can be trying and is takes much more time than it should but when you finally get an approval, it sure makes everyone involved feel good. Last but not least one of our agents just got her first contract signed. She helped her buyers find their "perfect home" and the offer was accepted by the seller yesterday. We have lots of work to get the sale closed but I want to congratulate Kara Green on her fist sale. Great job Kara, we know there will be many more!

Are you financially prepared for home ownership?

Julie Jalone (MagnumOne Realty) — Mon, 17 Nov 2008 14:57:19 -0800

I just posted my third of a five part series dealing with the question, "Is it the right time to buy a home in Sacramento?" The article is posted over at Rocklin & Roseville Today as part of my real estate column, "Is it the right time - are you financially prepared to be a homeowner." If you want to read the entire series you can find all five articles on my personal website.

Just being out and about today has to make you feel good. Here we are in the second half of November and the sun is out, the sky is blue and it is warm. What more could you ask for.

In the real estate business, we have been busy. I spent all day Friday out with a great new buyer. His company is looking for a home or multi-family unit where his employees can live while they are working on several projects here in the Sacramento area. We saw some interesting properties and went to a few neighborhoods I hope to never see again. In addition, our Short Sale negotiator has been having some success with a few lenders and getting short sales approved.

Working with the lenders is a difficult and long task. Unfortunately they appear to view us as the enemy rather than someone helping them avoid a larger loss. After you get them approved there is nothing more frustrating than having the buyer bail. This happened last week on one of our Sacramento listings. If you or someone you know is looking for a great investment or starter home, this property on 73^rd Street is a great deal and the bank is ready to go!