Ken's Blog

Upcoming Events at the Ronald Regan Library in Simi Valley

Ken Grech #01328727 (Troop Real Estate) — Sun, 31 Oct 2010 14:25:53 -0700

A post by Simi Valley real estate agent, Ken Grech. Here are some of the upcoming events at the Ronald Regan Library, located here in Simi Valley.

November 11, 2010 Veteran’s Day Event

This annual event will honor the men and women who serve in the United States Armed Forces. At 10:30am a C-17 Flyover| 10:45 am Musical performances by the Conejo Valley Youth Orchestra| 11:05 am Program in the Presidential Learning Center| All day: Civil War re-enactments by the Washington Artillery of New Orleans| World War II trucks| Current Military vehicles on display.

All Veterans Day activities are FREE for the public to attend; regular museum admission rates apply to visit the exhibits. As always, all veterans and military members with valid ID will receive free admission to the Museum and Air Force One Pavilion all day.

November 18, 2010 Annual American Christmas

Starting November 18, 2010 the annual American Christmas display will be available to see until January 2, 1011. This is a display of 24 Christmas Trees decorated to celebrate the defining moments of America’s road to greatness. If you’ve never seen the display, it is truly worth your time to see, words cannot describe this display!

November 18, 2010: Special Lecture/Dinner with President George W. Bush

On November 18, 2010, President George W. Bush will be speaking and addressing the Perspectives on Leadership Forum. Tickets for this lecture are $95.00 per person which includes dinner. Signed copies of President Bush’s memoir will be available in the Library’s Museum Store before and after the event.

November 29, 2010: Book Signing Mike Huckabee

On November 29, 2010, former Governor of Arkansas and best selling author Mike Huckabee will be at the Library to sign copies of his two books, A Simple Chirstmas:Twelve Stories that Celebrate the True Holiday Spirit and Can’t Wait Till Christmas! Signing will take place from 12:00pm to 1:00pm This event is FREE.

CALHFA Returns As Option For First Time Buyers

Ken Grech #01328727 (Troop Real Estate) — Sun, 19 Sep 2010 15:30:01 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. Here's some highlights from an interesting article that was in today's Sunday Ventura County Star paper written by Elizabeth Alvarez.

The California Housing Finance Agency recently announced updated programs to help first-time home-buyers. While this agency cannot offer a cure-all for the real estate market, this is a welcome bit of good news for consumers who are considering buying a home. First, to clear up a common confusion regarding mortgage lingo: First-time home-buyer is a technical term for ANY person who has not owned a primary residence in the last three years. Many people of all ages, including veterans, qualify for this loan-it is not reserved solely for young people buying their first home property.

The new CALHFA mortgage is offered in partnership with the Federal Housing Administration. The loan provides low and moderate income, first-time homebuyers with below market interest rates and affordable down payment option for thier home mortgage, among other benefits. Veterans also are eligible for CALHFA financing under the Heroes Earnings Assistance and Relief Tax Act. This loan brings CALHFA back as significant provider of financing for first-time home-buyers, which, historically, is the reason why the agency was created. Through CALHFA's down payment program, called California Homebuyer's Downpayment Assistance Program, borrowers may qualify for up to 3 percent of the purchase price of the home for down payment or closing cost assistance.

To qualify, borrowers must qualify according to the following guidelines: Income limits-these vary by county and family size. For example, in Ventura County, a family of four may earn up to $122,500 annually; in Los Angeles County, a family of four may have a yearly income of up to $110,020. Loan limits and sales price limits-FHA mortgage loans limits are generally $417,000; sales price limits vary by county. Minimum credit score requirement of 620, and all borrowers must complete a home-buyer education program through a HUD-approved agency. For more information on this loan go to: http://www.calhfa.ca.gov or call, toll free 1-877-922-5432.

For any up to date listings or sales within the Simi Valley and/or Ventura County market please free to contact me at: 805-217-1368 or visit my website: www.simiishome.com

29 Essential Tips That Get Homes Sold Fast (And For Top Dollar) Part 4

Ken Grech #01328727 (Troop Real Estate) — Wed, 25 Aug 2010 16:16:18 -0700

Post by Ken Grech, a top Real Estate Agent. Search Simi Valley Real Estate listings.

Tip #24: Don't give yourself a deadline. Forcing yourself to sell by a certain date adds unnecessary pressure and puts you at a serious disadvantage in negotiations.

Tip #25: Don’t take a low offer personally. Make sure it spells out the offering price, adequate earnest money, amount of down payment, mortgage amount, a closing date and any special requests.

Tip #26: A really low offer may mean the buyer is not qualified. Ask how they arrived at their figure, then suggest their agent use comparables to establish what homes are going for in your neighborhood.

Tip #27: Don’t take a low ball offer seriously. This lets a buyer know that their first offer isn’t seen as a very serious one.

Tip #28: Make sure the contract is complete. The best way to avoid problems is to make sure that all terms, costs and responsibilities are spelled out in the contract of sale.

Tip #29: Don’t deviate from the contract: Resist the temptation to diverge from the contract. For example, if the buyer requests a move-in prior to closing, just say no. Now is not the time to take any chances of the deal falling through.

For more detailed information contact Ken Grech 805-217-1368

29 Essential Tips That Get Homes Sold Fast (And For Top Dollar) Part 3

Ken Grech #01328727 (Troop Real Estate) — Wed, 25 Aug 2010 16:12:04 -0700

Post by Ken Grech, a top Real Estate Agent. Search Simi Valley Real Estate listings.

Tip #16: Disclose everything. Smart sellers proactively go above and beyond the laws to disclose all known defects to their buyers-in writing. If the buyer knows about a problem, he cant some back with a lawsuit later on.

Tip #17: The more prospects, the better. By maximizing your home's marketability, you'll increase your chances of attracting more than one prospective buyer.

Tip #18: Don't get emotional during negotiations. If you can just let go of the emotion you've invested in your home and approach negotiations in a detached, businesslike manner, you'll find the process to be a lot less painful.

Tip #19: Know your buyer. In the negotiation process, your objective is to control the pace and set the duration. And the better you know your buyer, the more easily you can maintain control.

Tip #20: Find out what the buyer can pay. As soon as possible, try to find out the mortgage amount the buyer is qualified to carry and the size of his down payment. If he makes a low offer, question his Realtor about his client's ability to really pay what your home is worth.

Tip #21: Find out when the buyer would like to close. When a buyer would "like" to close is often when they need to close. Knowing this gives you his deadline for completing negotiations-again, an advantage in negotiations.

Tip #22: Don't sign a deal on your next home until you close the deal on this one. If circumstances conspire to force you into closing on your new home while you're still making mortgage payments on the old one, you might end up turning yourself into a seller who is eager (or desperate) for the first deal that comes along.

Tip #23: Don't move out before you sell. If you move, you're also telling buyers that you have a new home and are probably motivated to sell.

For more detailed information contact Ken Grech 805-217-1368

29 Essential Tips That Get Homes Sold Fast (And For Top Dollar) Part 2

Ken Grech #01328727 (Troop Real Estate) — Wed, 25 Aug 2010 16:10:05 -0700

Post by Ken Grech, a top Real Estate Agent. Search Simi Valley Real Estate listings.

Tip #7: Find a good realtor. Nearly two-thirds of the people who sell their own home say they wouldn't do it themselves again, according to research by the National Association of Realtors.

Tip #8: Give yourself room to negotiate. In setting your asking price, review your priorities. Do you want to maximize your profit or sell quickly? You'll price high for the former and closer to market value if the latter is the case.

Tip #9: Maximize your home's sales potential. Each year. corporate North America spend billions of dollars on product and packaging design. The lesson here is that appearance is critical-and it would be foolish to ignore this when selling your home.

Tip #10: Rely on other people's judgments as well as your own. The biggest mistake you can make at this point is to rely solely on your own judgment.

Tip #11: Clean like you've never cleaned before. Remember, you're not just competing with other people's homes-you're going up against brand-new homes as well.

Tip #12: Fix everything no matter how insignificant it may appear. The problem is that you never know what will turn off a buyer.

Tip #13: Remove all traces of you from your home. Avoid any feeling of discomfort by making everything in your home neutral. When touring other people's homes you may have felt you were intruding in someone’s life and experienced this feeling.

Tip #14: The little touches can make a difference. A well-placed vase of flowers, accent pieces of sculpture, potpourri in the bathroom- all can enhance the attractiveness of your home in a subtle, soft-spoken way.

Tip #15: Don't let a smell be your downfall. Odd smells kill deals quickly. All traces of food, pet and smoking odors must be eliminated.

For more detailed information contact Ken Grech 805-217-1368

29 Essential Tips That Get Homes Sold Fast (And For Top Dollar) Part 1

Ken Grech #01328727 (Troop Real Estate) — Wed, 25 Aug 2010 16:03:31 -0700

Post by Ken Grech, a top Real Estate Agent. Search Simi Valley Real Estate listings.

Selling your home is one of the most important steps in your life. Here are 29 essential tips you must know...

Tip #1: Know why you're selling. The reason you look closely at why you want to sell is that your motivations play an important role in the process. They affect everything from setting a price to deciding how much time and money you'll invest to getting your home ready for selling.

Tip #2: Once you know, keep it to yourself. Your reasons will affect how you negotiate the sale of your home, but they shouldn’t be given as ammunition to the person who wants to by it.

Tip #3: Do your homework before setting a price. Once you've set your price, you've told buyers the absolute minimum they have to pay for your home. A good realtor is attuned to nuances in the market that may not be apparent from comparable sales and listings.

Tip #4: Go home shopping yourself. Plan on spending a few weekends touring other homes on the market to learn what other sellers are asking. Be sure to make note of the floor plan, condition, appearance, size of lot, location and other features.

Tip #5: Know when to get an appraisal. Sometimes you can use a good appraisal to your benefit in marketing your home. And if you get a VA or FHA appraisal, you can use it to let prospective buyers know that your home can be finances.

Tip #6: Your tax assessment means almost nothing. Some people look to tax assessments to assign value. The problem here is that assessments are based on a number of criteria unrelated to property values, so they often don’t necessarily reflect the true value of your home.

For more detailed information contact Ken Grech 805-217-1368

Home Buyers: How To Avoid Paying Too Much Part 3

Ken Grech #01328727 (Troop Real Estate) — Mon, 16 Aug 2010 19:43:53 -0700

Post by Ken Grech, a top Simi Valley Real Estate Agent. Search Simi Valley Real Estate listings.

Tip #19: Check your emotions at the door during negotiations. One of the costliest mistakes you can make is letting the seller's know how much you love their home.

Tip #20: Don't be pressure into a quick deal if it doesn't feel right. It may be a sign that there's something you should know but don't.

Tip #21: Don't be afraid to negotiate. Negotiation is the key to getting a good deal.

Tip #22: Stay out of bidding wars. If there is another buyer, then the seller's agent will try to get a bidding war going. In these situations, whoever wins also loses because the buyer ends up overpaying.

Tip #23: Make sure you get a written disclosure of all known defects. Carefully consider how these defects might affect what you're willing to pay.

Tip #24: Know your hidden costs. Don't forget to factor in mortgage insurance, appraisal fees, inspection fees, transfer taxes, title insurance and ever other dollar you'll have to spend to know what you're really paying for your new home.

For more detailed information contact Ken Grech 805-217-1368

Home Buyers: How To Avoid Paying Too Much Part 2

Ken Grech #01328727 (Troop Real Estate) — Mon, 16 Aug 2010 19:41:26 -0700

Post by Ken Grech, a top Simi Valley Real Estate Agent. Search Simi Valley Real Estate listings.

Tip #8: Shop with your head, not your heart. Don't forget the purpose of your "needs" and "desires" lists. Your heart will cost you money; using your hearts will save it.

Tip #9: Don't ignore red flags when evaluating a home's pluses and minuses. When evaluating the advantages and drawbacks of a particular property, be sure you know the difference between acceptable and unacceptable problems.

Tip #10: Hire a professional home inspector. Spending a few hundred dollars on a professional home inspection is the best investment you'll ever make.

Tip #11: Not all fixer-uppers are good buys.

Tip #12: Choose a home with an eye towards future needs. Buying a home is a big investment. If you can stretch a little today to buy a home that you can grow in-do it.

Tip #13: Once you're ready to buy, move quickly. Good properties move fast. Be prepared to make decisions quickly. If you find the right home today but arent ready to buy until tomorrow, you may already be too late.

Tip #14: Clarify who your agent is. Make sure you know who the agent you're talking to represents.

Tip #15: Ask for a written comparative analysis. One way to make sure you don't offer too much for a home is to ask for a CMA. A CMA will show you the sale prices of comparable home in the neighborhood.

Tip #16: Learn as much as you can about the seller's situation. It's true what they say: Knowledge is power. The reasons behind a sale can often be used to your competitive advantage during negotiations.

Tip #17: Keep your own situation to yourself. Information can be used against you as well.

Tip #18: Use time to your advantage. If you can learn the seller's deadline, it's another piece of information that can be used to negotiate a better deal.

For more detailed information contact Ken Grech 805-217-1368

Home Buyers: How To Avoid Paying Too Much Part 1

Ken Grech #01328727 (Troop Real Estate) — Mon, 16 Aug 2010 19:37:17 -0700

Post by Ken Grech, a top Simi Valley Real Estate Agent. Search Simi Valley Real Estate listings.

Finding the right home to meet your family's needs is hard enough.But knowing how to avoid paying too much for that home once you've found it is another job entirely. The tips included here will go a long way into helping you become a savvy buyer.

Tip #1: Know what you're shopping for before you start. Before you begin shopping, understand that there are two homes out there vying for your interest-the one that meets your needs vs. the one that fulfills your desires.

Tip #2: Shop for a mortgage before you shop for a home. Getting a loan pre approval is the smart way to shop for a home. It tells sellers that you're a serious prospect, and you know in advance the maximum mortgage you can afford.

Tip #3: Pick a winning team to help you. From picking a mortgage to finding the right home to inspections to negotiating the best deal, it can be exhausting for even the hardiest souls. That's why most people have a Realtor in their corner.

Tip #4: Make sure your Realtor knows what you are looking for. Once you have a clear, detailed picture of the home you want, make sure your agent has the same picture. This communication is critical.

Tip #5: It's a cliche, but... location, location, location. The desirability and resale value of your home-to-be depend on locations more than any other single factor.

Tip #6: Use your agent to narrow the prospect list. A good agent brings to the table an in-depth knowledge of the current housing inventory in his or her area, and continually updates that knowledge by touring homes as they are placed on the market.

Tip #7: Show a little interest in everything you see. Never let anyone know how badly you want a home--it will cost you money!

For more detailed information contact Ken Grech 805-217-1368.

How To Squeeze Every Last Doller From Your Home Sale

Ken Grech #01328727 (Troop Real Estate) — Tue, 10 Aug 2010 16:25:18 -0700

Post by Ken Grech, a top Simi Valley Real Estate agent. Search Simi Valley Real Estate listings.

Here are my recommendations: Spend time before you spend a dime: Unless your home is in mint condition or you're selling it as a "fixer-upper", there's probably a long list of repair or remodeling projects to consider. These can range from relatively simple jobs, such as painting a bathroom, to more complex room-addition or remodeling projects. Some investments-like painting and yard work-involve relatively little cash outlay and yet return many times your cost.

Planning is everything: If there's one peice of advice I would give any homeowner regardless of the circumstances, it's this: Plan first, then do. Careful planning on your part is a prerequisite to undertaking any home improvement project, major or minor. In fact, the quickest way a "minor" project balloons into a mahor one is when you havent thought things through in advance. I've seen more people get in over their heads because they didnt think things through before starting work.

Catch 'em at the curb: "Curb appeal" isn't just catchy real estate jargon. It recognizes the fact that many buyers from their first, and often strongest, opinions before they step out of the car. Remember, buying a home is first and foremost an emotional commitment, especially for first-time home buyers. You many have a long list of logical reasons your home is a good catch, but a buyer is reacting emotionally to what he or she is seeing.

Paint: It should come as no surprise that surveys show that painting the exterior of your home results in the greatest return on time and money invested when compared to other improvements done for selling purposes. An investment of $1,000-$2,000 can mean adding $3,000-$4,000 to your asking price. And if you can do a good job yourself, your profit is even greater. As is the case outside, a coat of paint can literally make the difference between a sale and no sale.

Landscaping: Another key first impression is made by the grounds of your home. If you can improve the attractiveness of your landscape without spending a lot of money, you can add a good 5 to 10 percent to the value of your home.

The driveway: Because it's big, dark, and usually takes up a significant portion of the property in front of your home, a driveway can affect a buyer's first impressions. If yours is in good condition, make sure you keep it swept and neatly edged where it meets the lawn. If yours is cracked, buckled or oil-stained, fix it, Patching concrete can be a problem because matching color is difficult; tar and asphalt are relatively easy to match. Whatever you do, be careful you don't create a bigger problem through quick-fix solutions. Use high quality patching materials and sealers.

Decks and patios: These can be popular additions that add alue, especially with smaller homes, because they add living space. But make sure that whatever you do is consistent with your home's architectural style and integrates well with your outdoor areas.

The garage: If your garage has that rough, unfinished look, consider drywall and matching switch and outlet plates. At a minimum, make sure all switches and outlets work. And give everything a good cleaning.

Don't neglect the minor details: It's often the little things that stand out. If your mailbox is in poor shapr, replace it. Varnish or repaint your door if it needs it. A door knocker and brass kick plate can also be a nice addition. Spruce up the entryway with new light fixtures, potted plants and other decorative touches. Ironically, some of the big-budget items you might consider spending your money on will do little to enhance the marketability to your home. One major expense you may have to consider is a new roof. A roof in poor condition can kill a deal.

The kitchen: If you can get away with a remodel rather than a new kitchen, do it. Because the kitchen is so important, sellers sometimes over-improve them to the point where there is no chance of recouping their investment when they move. Don't fall into this trap. When you do make changes to your kitchen, think sunny, spacious and clean.

The bathroom: New fixtures, wall tile and flooring can make a big difference. If the bathtub is in poor shape, you can replace it, but a less expensive option may be to re-enamel it. If you keep the old tub, at least regrout it and recaulk it. A good bathroom remodel or expansion can easily return 100 percent of its cost when you sell.

Bedrooms: For most people, the master bedroom is the third most important room in the house. If you have a large home with four or five small bedrooms and the floor plan allows for it, you might consider combining two rooms into a master bedroom. If you have a two or three bedroom home and a decent-sized lot, you might consider adding another bedroom.

Trends to watch: A more recent hot remodeling trend is the "great room" -combining the kitchen, dining, and family room into one larger living area. While lagging behind kitchen and bath remodels, it is definitely a trend on the rise. Living rooms, family rooms, and formal dining rooms, on the other hand, are diminishing in popularity. A home office is another room that is rising in demand and interest.

Home improvement "don'ts": There are several things you can do that can actually lower the value of your home or make it more difficult to sell. Here are a few rules to keep in mind: *Do it well, or don't do it at all. You may be tempted to do a lot of work yourself to save money. That's fine if you know you can do a good job. But if doing it yourself means a sloppy paint job or bubbles in the vinyl flooring, then i suggest hiring a professional. Hiring an expert can often be cheaper and faster in the long run. *Don't over-improve. Any project that raises your home's value bye more than 20 percent above similar homes in your neighborhood should be reconsidered. The reason is simple. Say your home is typical in a neighborhood of $100,000 homes, and you make $50,000 in improvements. Buyers looking for a $150,000 home are looking in neighborhoods where that is the norm, not the exception. *Don't plan on moving soon if you're spending a lot. You probably wont recoup your investment if you plan to move in less than two years. If you plan to move sooner, spend less money and focus your efforts on the most egregious problems. For example, turn a bad kitchen into a decent one rather than a chef's kitchen.

For more detailed information, please contact: Ken Grech 805-217-1368

Mortgage Rates Fall to 4.8%, Home Buyers Still Scarce

Ken Grech #01328727 (Troop Real Estate) — Wed, 02 Jun 2010 14:22:27 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. The Wall Street Journal, By Nick Timiraos:

Mortgage rates fell again last week, sending refinancing applications up. But in a sign that the housing market may be stumbling through a stimulus-induced hangover, new-purchase applications also fell again to a 13-year low.

Average 30-year mortgage rates fell to 4.8% last week from 4.83% the previous week, according to the Mortgage Bankers Association. While rates on 15-year fixed-rate loans rose to 4.25% from 4.19%, the average fees charged to borrowers fell, effectively lowering the rate.

That helped refinance activity increase by 17% from the previous week, the third straight weekly increase. But purchase activity is down 27% over the past four weeks-a sign that the $8,000 tax credit that expired at the end of April simply moved demand forward.

"It's not clear that we're going to see much of an increase in purchase applications because anybody that wanted to buy a house probably did last month," said Jay Brinkmann, the MBA's chief economist.

For more than a year, low interest rates had been a key pillar of government support that, along with an $8,000 tax credit year, was widely credited with breaking a downward spiral in home prices by boosting demand for housing. The housing industry had braced for rates to rise once the Federal Reserve ended its $1.25 trillion in purchases of mortgage securities at the end of March.

But the European debt crisis has raised new concerns about the health of the global economy, benefiting U.S. consumers. Mortgage rates have fallen over the last two weeks as investors seek safe-haven assets such as U.S. Treasurys, to which rates on long-term mortgages are closely tied, and securities backed by mortgages that are guaranteed by the government.

To read this full report, please visit www.wsj.com. For any home or lending information, please visit www.simiishome.com.

Housing's New Normal: Wait and See

Ken Grech #01328727 (Troop Real Estate) — Wed, 02 Jun 2010 14:17:22 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. The Wall Street Journal, By Dawn Wotapka:

The housing market-especially for new homes-is having a great Wednesday.

Luxury builder Toll Bros. this morning reported a narrower quarterly loss and said that in May's first three weeks, per-community deposits have climbed 23%, while traffic is up 11% from a year earlier. Chief Executive Bob Toll says consumers feel more confident in job security and their ability to sell existing homes. "It appears our business has finally emerged from the tunnel and into a bit of daylight," he says.
"We believe many markets are turning the corner, and housing in general is beginning its recovery."

Then came news that new-home sales hit a two-year high in April. Inventory also fell, while March's sales total was revised upward to 439,000 from 411,000. "The April advance confirms a strong sales rebound from their winter time lull," writes Nomura Global Economics.

It's exciting news-the beaten-down builder stocks are all in positive territory-given multi-year depression the entire housing market has endured. Hovnanian is up 6%, while Standard Pacific added 4.52%. Toll is up 3.83%.

But proceed with caution. "We don't expect housing to roar back right away," Mr. Toll said in the earnings release. "The high rate of unemployment, coupled with volatility in the financial markets, continues to weigh on the nation's psyche."

Need it put more bluntly? "For builders (those still standing), market conditions remain brutal," said Patrick Newport, an economist with IHS Global Insight.

The Journal reports today that home prices remain under pressure, with March marking six straight months of decline. And the tax credit continues putting a shine on data. But the reality is that plenty of buyers rushed to ink deals before the credit of up to $8,000 expired, likely pulling demand forward. Applications for new-purchase mortgages declined again last week to a 13-year low and are down 27% over the past four months, according to the Mortgage Bankers Association. UBS analyst David Goldberg fears the pull forward was greater than previously assumed.

It will be some time before we know what a normal market looks like. "We expect to see continued volatility in this data, with the obvious key question being, 'How will traffic and sales respond now that the Federal tax credit program is over?'" said Carl Reichardt, an analyst with Wells Fargo.

Wait and see: It's becoming the new normal in housing.

Tax Credits Boost New Home Sales

Ken Grech #01328727 (Troop Real Estate) — Wed, 02 Jun 2010 14:10:54 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. The Washington Post, By Renae Merle:

New home sales surged last month as home buyers rushed to take advantage of tax credits that have helped lift the housing market, according to government data released Wednesday.

Sales of new single-family homes rose 14.8 percent in April, compared with March, to a seasonally adjusted annual rate of 504,000, according to Commerce Department data. Sales were up 47.8 percent, compared to the same period a year ago. That was a much bigger jump than financial analysts had expected, bringing the sales rate to its highest level in about two years.

Sales rebounded the most in the Midwest, where they rose 31.6 percent. They were up 10.8 percent in the South, which includes the Washington region, and increased 21.7 percent in the West. Sales were flat in the Northeast.

Economists said the report reflects the impact of low mortgage rates and falling home prices, which has made a home purchase cheaper for many potential buyers. The median new home sales price in April fell to $198,400, compared with $219,200 during April 2009.

But the biggest boost, economists said, came from an $8,000 tax credit available to some first-time home buyers and a $6,500 tax credit available to some repeat homeowners who buy a new primary residence. To qualify for the tax credits, a buyer must have entered into a contract by April 30 and complete the transaction by June 30.

The tax credits also helped boost existing home sales, which jumped 7.6 percent in April, according to an industry report released this week. Now that the tax credits have expired, many economists are expecting to see sales activity in both markets begin to slow. The tax credits probably spurred some people planning to buy a house to purchase them earlier, analysts said.

To read this full report, please visit www.washingtonpost.com. For any home or lending information, please visit www.simiishome.com.

Delinquency Drop Shows Impact of FHA Measures

Ken Grech #01328727 (Troop Real Estate) — Wed, 26 May 2010 14:30:50 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. American Banker, By Sara Lepro and Kate Berry:

In a surprise reversal, the delinquency rate on single-family mortgages insured by the Federal Housing Administration has fallen in each of the last three months amid record volume.

Stable housing prices and higher-quality loans are aiding the agency's recovery, though FHA Commissioner David Stevens cautioned that the mortgage market is still on federal life support.

"Let's be real - it's still a government-financed market," Stevens told a group of industry executives Monday at a Mortgage Bankers Association conference in New York. "We have a lot of work to do to get the capital markets back to a sustainable level."

Citing a study by Campbell Communications, a Washington research firm, Stevens also said the FHA backed more single-family mortgages than Fannie Mae and Freddie Mac purchased or guaranteed in the first quarter of this year.

The FHA is on track to guarantee 1.9 million loans this fiscal year, the same as in the one that ended Sept. 30, which was up from 1.1 million a year earlier.

For FHA to handle so much volume "is a sign of a very sick market," Stevens said. "Unfortunately, I don't think that's going to be changing anytime soon."

These days FHA loans are nearly the only product lenders can offer borrowers who have little money for a down payment (and the Department of Veterans Affairs and the Department of Agriculture's Rural Housing Service serve only their respective niches). FHA lending now accounts for 30% of all residential mortgages written, up from 3% in 2006, said Brian Chappelle, a partner at the Washington consulting firm Potomac Partners and a former official with the Department of Housing and Urban Development.

In recent years higher volume and market share came at a stiff price: higher defaults and losses. An audit released in November showed that in the fiscal year that ended Sept. 30, the FHA's capital reserve ratio had fallen to 0.53%, well below the congressionally mandated minimum of 2%.

To read this full report, please visit www.americanbanker.com. For any home or lending information, please visit www.simiishome.com.

U.S. Regulator Says Mortgage Lenders Stabilizing

Ken Grech #01328727 (Troop Real Estate) — Wed, 26 May 2010 14:25:09 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. The New York Times/REUTERS:

The U.S. thrift industry reported its third consecutive quarter of profit, earning $1.82 billion during the first three months of the year.

The Office of Thrift Supervision, which largely regulates mortgage lenders, said on Monday that earnings more than quadrupled from the prior quarter, and that overall it seemed that the thrift industry is stabilizing.

However, earnings were still suppressed by the additional $2.7 billion the industry tucked away during the quarter in anticipation of more loan losses, many tied to bad mortgages.

"The health of the thrift industry is improving but we cannot say the industry has fully recovered from the financial crisis," said OTS Acting Director John Bowman. "Until America gets back to full employment and more families are able to pay their monthly mortgages on time, the thrift industry will continue to face significant challenges."

The first-quarter profits were the highest since the second quarter of 2007.

The amount of troubled assets also moderated. The percentage of noncurrent loans and repossessed assets fell to 3.27 percent of industry assets, from 3.29 percent in the prior quarter.

The agency said the increases in problem assets are a direct result of the continued housing market downturn and high unemployment.

Earlier on Monday the National Association of Realtors said sales of previously owned U.S. homes touched a five-month high in April, but the inventory of existing homes also jumped, putting pressure on home prices.

Tax-Credit Rush Boosts Home Sales

Ken Grech #01328727 (Troop Real Estate) — Wed, 26 May 2010 14:18:55 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. The Washington Post, By Dina ElBoghdady:

Sales of previously owned homes surged in April to higher levels than analysts expected as buyers rushed to take advantage of a lucrative tax credit before it expired along with low interest rates and affordable prices, according to industry data released Monday.

Sales of existing homes, which consist mainly of single-family houses, town homes and condominiums, jumped 7.6 percent in April from March to a seasonally adjusted rate of 5.77 million units, the National Association of Realtors reported. Sales were up 22.8 percent from the comparable period a year earlier, the group said.

The new figures reflect significant improvements in the country's housing market as the selling season takes off. But they could prove short-lived once the tax-credit benefit fades.

Every region in the country experienced solid month-to-month gains except for the West, where sales fell 6.2 percent. The strongest showing was in the Northeast, where sales climbed 21.1 percent.

Trailing behind were the Midwest and the South, which rose 9.9 percent and 8.6 percent, respectively.

But even as sales rose, the supply of for-sale homes grew more than the Realtors' group expected, putting a damper on otherwise upbeat results.

As key elements in boosting sales, the report highlighted an $8,000 tax credit available to some first-time home buyers and a $6,500 tax credit available to certain homeowners who buy a new primary residence.

But many who track the industry warned not to read too much into the spike in sales ahead of the tax credit's expiring.

"The sales would be very healthy if they were happening on their own, but they're happening with the helpful hand of Uncle Sam," said Michael Larson, a housing analyst at Weiss Research.

Many economists say they suspect that the tax credit lured people who were already planning to buy houses into purchasing them earlier than planned. This means the robust sales activity of the past two months could eat into sales later this summer.

To read this full report, please visit www.washingtonpost.com. For any home or lending information, please visit www.simiishome.com.

CitiMortgage Exits Jumbo Wholesale

Ken Grech #01328727 (Troop Real Estate) — Wed, 19 May 2010 14:46:07 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. American Banker, By National Mortgage News:

CitiMortgage, a top ten player in wholesale lending, will no longer fund non-agency jumbo mortgages through loan brokers, National Mortgage News has learned.

A New York area broker that has used the bank for years said he received notification on Monday, and a spokeswoman for Citi confirmed, that "we are not currently offering jumbos through the broker channel."

The bank-owned lender, however, will continue funding jumbos through its retail channel.

The spokesman said CitiMortgage offers "attractively priced" jumbo mortgages to "our highly credit-worthy customers, as we anticipate holding these loans on our balance sheet."

CitiMortgage is based in O'Fallon, Mo., but its parent bank is headquartered in New York, one of the most expensive housing markets in the nation, and home to many financial service executives who live in New Jersey, New York, and Connecticut where home prices can easily exceed the GSE jumbo limit of $729,750.

Many jumbo providers today require down payments of at least 20%. Liquidity in the market is beginning to loosen up somewhat thanks to a recent jumbo securitization done by Redwood Trust, a publicly traded REIT.

For any home or lending information, please visit www.simiishome.com.

Data Firms Going Deeper on Mortgages

Ken Grech #01328727 (Troop Real Estate) — Wed, 19 May 2010 14:40:51 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. The Wall Street Journal, By Prabha Natarajan:

Investors' quest for more nitty-gritty details on borrowers of home loans and real-estate trends have spawned a new industry for data providers.

Credit bureaus are using data-mining techniques to make detailed consumer and loan-level information easily available to residential-mortgage-backed-securities investors and analysts-not just when the securities are created, but also whenever they are sold in secondary markets. The expectation is that such analysis will prevent situations where buyers of bonds and other financial products tied to mortgages know little about what exactly they own. This added to the fears during the economic crisis of 2008.

Some investors once relied on credit-ratings firms to check under the hoods of these investments. But double-digit-percent age losses laid at the feet of credulous credit analysts and rapid ratings downgrades have undermined trust in the credit raters. Many investors now want to check the creditworthiness of each borrower whose loan is pooled into a security they own.

The latest in the stable of products that caters to this market is CreditHorizons for Securities, from Experian Capital Markets, a division of the credit bureau. It provides details on each mortgage holder and lets investors make their own judgments before buying a bond, especially one composed of distressed debt.

"The introduction of consumer-centric data to the market brings increased insight for determining future payment behavior and probability of default," said Ethan Klemperer, general manager of Experian Capital Markets.

Investors are less sanguine. They said they find many of the products pricey and don't buy full data sets. Instead, portfolio managers cherry-pick bits and pieces of information they need, and supplement with census data and other free information, said Paul Norris, portfolio manager with Dwight Asset Management.

Also, some investors note that they have access to these databases through their contacts at Wall Street banks, who have budgets that support purchase of these data sets.

This idea of using and monitoring consumer credit data through the life of a loan gained credence after the financial crisis. Investors and lenders felt close monitoring of credit profiles of borrowers would have helped spot the cracks in the ability of consumers to make payments early on.

To read this full report, please visit www.wsj.com. For any home or lending information, please visit www.simiishome.com.

Housing Market Holds its Ground

Ken Grech #01328727 (Troop Real Estate) — Wed, 19 May 2010 14:31:08 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. Los Angeles Times, By Alejandro Lazo:

Southern California's housing market held its ground in April, data released Tuesday show, with prices rebounding off their year-earlier lows but sales slipping for the first time in nearly two years as the number of fast-selling foreclosure properties dwindled considerably.

The median price for all Southland houses, town homes and condominiums sold last month was $285,000, a 15.4% increase from the April 2009 bottom, when foreclosures accounted for more than half the resale market. But the closely watched median -- the price at which half the homes sold for more money and half for less -- was unchanged from March, according to San Diego-based MDA DataQuick.

Sales for the region fell 1% in April compared with a year earlier -- the first decline in 22 months -- indicating that the Southland's supply of cheaper, bank-owned properties is tightening compared with last year's glut. The month-to-month drop was almost the same, 0.9% compared with March.

"The market's still taking baby steps on a long road to recovery, trying to find its footing," MDA DataQuick President John Walsh said. "It's unclear which of today's sales characteristics are part of a new reality and which are still temporary turbulence."

Some of the sales slowdown may be attributable to buyers delaying their closings until May 1 or after to take advantage of a state tax credit of up to $10,000 for first-time buyers and those purchasing new homes.

Also, any last-minute rush of buyers motivated by the expiring federal tax credit last month isn't likely to be fully captured in April's data. Many of those deals are likely to close this month or next, particularly if buyers timed their purchases to claim both the federal and state incentives.

Many experts worry that the housing market could take another fall in coming months because a slew of government programs intended to support it have expired, the jobs picture remains cloudy and the mortgage market is still in disarray. A much-feared flood of foreclosure properties, if it materializes, could also send values falling again.

To read this full report, please visit www.latimes.com. For any home or lending information, please visit www.simiishome.com.

"Where Can I Get the Lowest Rate?"

Ken Grech #01328727 (Troop Real Estate) — Wed, 12 May 2010 14:30:05 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. The following is taken from Kiplinger Report dated June 10, 2010 “Where can I get the lowest rate?”

Some mortgage brokers may be able to give you a wholesale rate that beats the rate from a bank’s loan officers. Known as correspondent lenders, they are typically large brokers that do the underwriting and immediately sell the loans they originate to wholesale lenders or investors-meaning they can both find you a loan and approve it. If you’re trying to get a loan, a mortgage broker may also offer more options that a retail loan officer.

I work with top qualified mortgage brokers who will give you all of the available options that are best suited to you. If you would like to speak with a loan broker professional, please contact me. I look forward to helping you. Ken Grech

Now Is The Time To Buy!

Ken Grech #01328727 (Troop Real Estate) — Wed, 12 May 2010 14:24:13 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. I hope you find the following article very informative. From Kiplinger’s Personal Finance magazine, May 2010

This spring, opportunity is knocking hard for home buyers. Aside from the soon-to-expire tax credit worth as much as $8,000 (you must have a contract by April 30 and close the deal by June 30), affordability has returned to pre-boom levels and mortgage money is cheap, with the 30-year fixed rate hovering around 5%.

Unless you area is rife with foreclosures that promise to drag down prices, there’s little reason to wait to buy. Mortgage rates are likely to head higher—the 30 year fixed rate may hit 5.7% by year-end, according to Freddie Mac—which may negate any benefit you’d get by waiting for lower prices. Suppose you buy a home with a $300,000 mortgage now and lock in a 5% rate. Your monthly principal and interest payments would be $1,610. If you wait until prices drop 6% and borrow $282,000—but have to pay 5.7% on the loan—your monthly payment would be $1,637.

The supply of homes for sale nationally has drifted downward from its peak in 1988 but is still stacked in favor of buyers—although in many cities the inventory of entry-level homes has dropped quickly, as first-time buyers and investors have scooped up bargains. On the new-home front, most builders have burned off their existing supply of homes and reduced or eliminated concessions and incentives. They may pay closing costs, but later this year Federal Housing Authority (FHA) rules will limit the seller’s contribution to 3% of the purchase price. You can still get upgrades, but you’ll pay for them upfront, say Jody Kahn, vice-president of John Burns Real Estate Consulting.

If you need to sell a home before you can buy again, your best strategy is to price it realistically to move it fast (see 3 Keys to Selling Your Home). That was Andy May’s strategy when he sold his condo in Rochester, Minn., for a loss before he and his fiancé, Lexi Davis, moved to Salt Lake City. In their search for a home, the couple started their shopping on the Internet. Once they began to tour homes, they discovered that many properties that had looked good online didn’t cut it in person—because of unappealing floor plans or unacceptable commutes. In home buying, what you want—or not—evolves after you actually see the homes, says May.

After visiting at least 20 houses, they put a bid on a home with four bedrooms, three bathrooms and a big yard for their dog. The home was listed for $250,000 and had been for sale for six months. The couple offered $230,000, and after negotiating settled on a price of $238,500 with $3,500 in seller-paid closing costs—including a home warranty and a year’s worth of homeowner’s insurance. They put down $7,000 and took out a 30-year, fixed-rate FHA mortgage with a rate of 4.75%. As a first-time homebuyer, Davis qualified for a tax credit $8,000.

Now is a great time to buy! Take advantage of what’s available to you now! I look forward to helping you. Ken Grech

Fannie Tightens Rules

Ken Grech #01328727 (Troop Real Estate) — Wed, 05 May 2010 14:38:30 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. South Florida Sun-Sentinel, From News Services:

Mortgage finance company Fannie Mae is tightening standards for the adjustable-rate and interest-only loans that fed the housing boom and contributed to the bust.

The company said it will require mortgage lenders to consider how high a borrower's mortgage payments might rise after teaser rates expire.

Fannie Mae said it will enact tighter standards for "interest only" loans that allow borrowers to avoid making principal payments for several years. To obtain those loans, borrowers taking out new mortgages must have a down payment of at least 30 percent and enough assets for two months of living expenses.

Fannie Mae's new rules, which go into effect in September, affect loans that adjust in five years or less.

For any home or lending information, please visit www.simiishome.com.

Taking the Direct Route on Risky Mortgages

Ken Grech #01328727 (Troop Real Estate) — Wed, 05 May 2010 14:32:13 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. The Wall Street Journal, By David Reilly:

No more liar loans. That should be one goal of the financial-overhaul legislation set for debate in the Senate this week.

But, as things now stand, the bill doesn't directly set minimum standards for mortgages or stamp out those practices that helped inflate the housing bubble. These would include liar loans, also known as stated-income or no-documentation mortgages, as well as negative-amortization loans that caused mortgages to balloon by allowing homeowners to defer principal or interest payments.

Instead, the legislation requires banks to retain a 5% portion of many loans they intend to sell, or securitize. The thinking is that banks won't make risky loans if they have to eat their own cooking. The danger is that Wall Street engineers its way around the restrictions come the next housing boom.

Better to take more direct action. That may happen following recent congressional hearings on the financial crisis that brought up the issue of liar loans. During last week's hearing on Goldman Sachs Group, Delaware Democratic Sen. Edward Kaufman questioned executives about stated-income loans and how they may have helped contribute to the failure of securities sold by the firm.

To read this full report, please visit www.wsj.com. For any home or lending information, please visit www.simiishome.com.

Refinancing Can be a Long Road

Ken Grech #01328727 (Troop Real Estate) — Wed, 05 May 2010 14:26:37 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. The Philadelphia Inquirer, By Al Heavens:

I stopped at Cohen's Hardware at Fifth Street and Passyunk Avenue recently.

While owner Mitchell Cohen was ringing up my hose washers, I remembered that he had e-mailed me a while back about a problem with refinancing his mortgage.

"Did you ever get the refi?" I asked.

He wondered how I knew, so I identified myself.

Cohen said he was, indeed, able to refinance his home loan, but it wasn't easy, even for an established businessman who pays loans, bills, and suppliers regularly and on time.

His is not an unusual experience. A few months back, I wrote about three other people with similar stories of hitting stone walls when they tried to refinance. Some were simply replying to offers from lenders, and still they had to jump through hoops.

"They were giving it away like candy 2 1/2 years ago," Cohen said. His fax machine would spit out offers from mortgage brokers regularly, saying all he had to do was call, and they could do the transaction on the phone.

Here's a guy who represents the third generation of his family in the hardware business. Everyone knows him. He'll watch your car parked in front of the store while you shop.

To read this full report, please visit www.philly.com For any home or lending information, please visit www.simiishome.com.

Homeowners Making Sacrifices in Tough Economy

Ken Grech #01328727 (Troop Real Estate) — Wed, 14 Apr 2010 12:43:25 -0700

Post by Ken Grech, a top Simi Valley real estate agent. Search Simi Valley real estate listings. Washington Post Online/Associated Press, By Adrian Sainz:

More than two thirds of Americans who've been unable to sell their home and buy one that better fits their needs have cut back on household expenses such as food, entertainment and clothing in order to pay their mortgage, a survey released Tuesday shows.

Homeowners who have fallen on financial hard times have made other sacrifices and lifestyle changes: About a third have downsized to a smaller home or delayed expanding their family as planned.

And, a quarter of homeowners who want to sell their current home and buy another say they need to make the move in order to lower their monthly expenses due to financial problems.

The survey, conducted for Move Inc., found wide-ranging concerns about the financial condition of homeowners in a challenging economy, but also unearthed evidence of increased demand among investors in residential real estate.

To read this full report, please visit www.washingtonpost.com. For any home or lending information, please visit www.simiishome.com.