El Dorado Hills, Folsom Real Estate

REO (BANK OWNED) SALES DATA FOR EL DORADO HILLS, CA OCTOBER-2009

Mike West (Heritage Oak Properties) — Fri, 20 Nov 2009 16:00:36 -0600

El Dorado Hills, CA REO (BANK OWNED) SALES DATA FOR OCTOBER 2009

This is a continuation of my monthly report on Bank Owned home sales for El Dorado Hills, CA. This report covers REO homes sold in October of 2009, the latest in my study of over two years.

There were 22 REO homes sold in October, up from 14 in September. The average days-on-market jumped to 43, up from the record low of eleven days in September. There were three homes that sold in October that had been on the market for 249, 127 and 108 days respectively, which had an effect on this statistic. Of the REO homes sold, 31.9% were on the market for two weeks or less.

The 22 homes sold represent 40% of all homes sold in El Dorado Hills.

Bank owned and Short Sales represent a majority of the home sales in today's market.

The cost per square foot of REO homes in October decreased to $ 149, down from $ 158 in September. The cost per square foot of all homes sold in October dropped twelve dollars, to $ 156.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 4.4% savings for REO buyers.

The overall sales price for REO homes was 101.9% of the final asking price. Only 36.4% of the REO homes that sold did so for less than the asking price.

At this writing there are 321 homes on the market in El Dorado hills, representing a 5.8 month inventory. We have edged into a seller's market.

The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all homes sold: in October, seven dollars per square foot. That is a $ 17,500 savings on a 2500 square foot home, still a tidy sum.

THe data follows:

REO (BANK OWNED) SALES DATA FOR FOLSOM, CA OCTOBER -2009

Mike West (Heritage Oak Properties) — Fri, 20 Nov 2009 15:56:28 -0600

Folsom, CA REO (BANK OWNED) SALES DATA FOR OCTOBER 2009

This is a continuation two year study of Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in October of 2009.

There were 19 REO homes sold in October, up from 11 in September. That is a 72.8% increase. The days-on-market increased from 20 in October to 27 in September. The primary reason for the increase is that one home that had been on the market for 156 days sold last month, skewing the average days-on-market figure. The fact that 52.7% of the REO homes sold in two weeks or less shows that REO homes are still selling quickly.

The 19 homes sold represent 27.6% of all homes sold in Folsom, within the normal range for this study.

The overall home inventory in Folsom is presently 250, a 3.6 month inventory, down from 4.7 in August, indicating a continuing strong seller's market. At this rate there will be a shortage of available homes very soon. A neutral market is considered a 6 month inventory.

The cost per square foot of REO homes in October decreased to $ 163, down from $ 170 in August. The cost per square foot of all homes sold in October decreased to $ 180, down two dollars from September. Prices are still trending downward but more slowly than in the past few years.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 9.4% savings for REO buyers.

The overall sales price for REO homes was 99.5% of the final asking price. In October only 31.6% of the REO homes that sold did so for less than the asking price!

However, the banks are still pricing these homes well and in September there was a seventeen dollar per square foot savings, compared to the cost of all homes sold. That is still a $ 42,500 savings on a 2500 square foot home, something worth considering when selecting a home.

The data follows:

HOW TO AVOID FORECLOSURE--Fannie Mae Deed-For-Lease

Mike West (Heritage Oak Properties) — Thu, 19 Nov 2009 16:52:58 -0600

HOW TO AVOID FORECLOSURE

Fannie Mae Deed-for-Lease Progra

Fannie Mae has come out with another option to help distressed home owners avoid foreclosure. Any program that will help is worth looking at. The program guidelines are very specific and not everyone will qualify.

It is a variation of the deed-in-lieu process, through which the homeowner/borrower gives the lien holder the deed to the property in lieu of foreclosure. The lien holder becomes the owner of the property and the distressed homeowner who meets the guidelines remains in the home as a tenant.

The borrower must have sufficient income to qualify to pay the market rent for the property. The cap is 31% of the borrower(s) gross income. So a family with a $ 2000 per month gross income can only qualify for a $ 620 monthly rent payment. The borrower must submit proof of income.
The borrower must continue to occupy the property. They can not initiate the program, move out and sublet to another party.
The property must be kept in good condition.
This program was announced on November 5, 2009, and not many loan servicers have embraced it at this writing. The guidelines will not allow many to qualify, but is an option for those who do.

For more information go to:

http://www.fanniemae.com/newsreleases/2009/4844.jhtml

If you have further questions feel free to contact Mike West:

(916) 337-0658

http://www.ForeclosureStopper.ORG

REO (BANK OWNED) SALES DATA FOR EL DORADO HILLS, CA SEPTEMBER -2009

Mike West (Heritage Oak Properties) — Tue, 20 Oct 2009 16:47:22 -0500

El Dorado Hills, CA REO (BANK OWNED) SALES DATA FOR SEPTEMBER 2009

This is a continuation of my monthly report on Bank Owned home sales for El Dorado Hills, CA. This report covers REO homes sold in September of 2009, the latest in my study of over two years.

There were 14 REO homes sold in September, four more than sold in August. The average days-on-market dropped drastically to eleven, down from 36 days in August. REO homes are selling like hot cakes. Of the REO homes sold, 35.8% were on the market for less than two weeks. The longest one on the market was 23 days.

The 14 homes sold represent 34.2% of all homes sold in El Dorado Hills, up from 26.4 in August.

The cost per square foot of REO homes in June increased to $ 158, up from $ 144 in August. The cost per square foot of all homes sold in September increased seven dollars, to $ 168.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 5.9% savings for REO buyers.

The overall sales price for REO homes was 102.7% of the final asking price. Worthy of note is the fact that only one of the REO homes sold did so for less than the asking price. The limited inventory and aggressive pricing result in offers at or above the asking price; the only way for buyers to get their offers accepted over competing buyers.

The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all homes sold: in September, $10 per square foot. That is a $ 25,000 savings on a 2500 square foot home, a tidy sum.

The data follows:

REO (BANK OWNED) SALES DATA FOR FOLSOM, CA SEPTEMBER -2009

Mike West (Heritage Oak Properties) — Tue, 20 Oct 2009 16:43:03 -0500

Folsom, CA REO (BANK OWNED) SALES DATA FOR SEPTEMBER 2009

This is a continuation two year study of Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in September of 2009.

There were 11 REO homes sold in September, one more than sold in August. The number of available REO homes has been drastically reduced. The days-on-market dropped from 22 in August to 20 in September. 54.6% of the REO homes that sold were on the market less than two weeks. One home had been on the market for 83 days.

For the second month in a row, none of the REO homes that sold were on the market for more than 90 days. Most are well priced when they hit the market and they are not lasting long.

The 11 homes sold represent only 19.3% of all homes sold in Folsom, similar to the August number.

The overall home inventory in Folsom is presently 265, a 4.7 month inventory, down from 5.3 in August, indicating a continuing seller's market. At this rate there will be a shortage of available homes very soon.

The cost per square foot of REO homes in September decreased to $ 170, down from $ 179 in August. The cost per square foot of all homes sold in September decreased to $ 182, down five dollars from August and the same as reported in July.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 6.6% savings for REO buyers. This number has been trending down for several months. Short sales are having an impact here. So REO sales are not the savings for buyers that they once were.

The overall sales price for REO homes was 103% of the final asking price. In September only 27.3% of the REO homes that sold did so for less than the asking price! The market has changed once again.

However, the banks are still pricing these homes well and in September there was a twelve dollar per square foot savings, compared to the cost of all homes sold. That is still a $ 30,000 savings on a 2500 square foot home, something worth considering when selecting a home.

The data follows:

LOAN MODIFICATION, AN EXPRESS-ROUTE TO FORECLOSURE

Mike West (Heritage Oak Properties) — Sat, 17 Oct 2009 16:48:31 -0500

This is a situation that is unfolding at the present time. I am passing it on so that others do not fall prey to the stupidity.

I listed a home as a short sale after the lien holder had recorded the Notice of Default and Notice of Trustee Sale. The seller had already made an unsuccessful attempted to obtain a loan modification with Wells Fargo. Time was short, so I priced the home aggressively at $ 340,000.

There was a flurry of activity and we had six offers in the first week, including offers over $ 400,000. I submitted the highest netting offer to Wells Fargo and they sent an appraiser to do the BPO. The appraiser told me that it would take a week to get the BPO into the lien holder. At that point we were firing on all eight cylinders.

Two days after the BPO got to Wells Fargo my seller got a call from them advising that he still might be able to get a loan modification, but that he could not pursue the loan mod and short sale at the same time. Naturally, he selected the loan modification. Wells Fargo postponed the trustee sale and our short sale process came to a screeching halt.

The loan mod dance went on for weeks. The buyer with the highest netting offer got tired of waiting and pulled the plug. I put the listing back into Active Short Sale status and the calls and showings started up again.

Last week my seller got a call from an agent, out of the blue, advising them that Wells Fargo had already foreclosed and that they were going to have to move out. He has yet to receive any documentation from Wells Fargo since the Notice of Trustee Sale on July 2^nd.

Apparently, the loan modification department and the department that handles the foreclosures don’t bother to talk to each other unless it is convenient for them to do so.

When they got the agent’s call there was no record of the foreclosure in the county records, but of course, with the county staff reductions they are behind in their updating process.

My seller called Wells Fargo to find out what was going on and they told him that there were no records of his communicating with them for several weeks. He only has cell phone and land-line phone records proving the existence of his calls.

It is not a coincidence that when my seller made the decision to pursue the short sale the information went through the Wells Fargo system at the speed of light. However, when it was not convenient for them to admit their stupidity, they have no record.

Yesterday I got a call from my title rep advising that indications are that Wells Fargo now owns the property and that they paid $ 375,000 at the trustee sale! I will not be able to get confirmation until Tuesday.

This is another BRILLIANT move by a lending institution that has received millions of dollars of our (TARP) tax money. Had they not interfered with our short sale process they would have netted considerably more. They spend between $ 40,000 - $ 60,000 to complete the foreclosure that was not necessary, and ignored an offer for more than $ 400,000!

Now they are going to have to get an offer for over $ 450,000 to match what we had going: not a likely prospect. Of course, we do not know how much they may gain from our government--FDIC guarantees and the like.

The important lesson is that once they file a Notice of Trustee Sale, the lien holder can drop the dime on your seller at any time that suites their fancy. To them, business is business, no matter how POOR the business decision happens to be.

The only thing that is vaguely fair about this incident is that Wells Fargo is going to take a bigger financial hit than was necessary.

Pass the word to other agents and sellers so that they do not fall into a similar trap!

One Small Step for Distressed Homeowners, One Badly Needed Step For Justice!

Mike West (Heritage Oak Properties) — Tue, 29 Sep 2009 17:39:13 -0500

Every once in a while some regulatory or professional organization does something right. It is frequently too little too late, but it is at least a small step in the right direction, hardly a giant leap for mankind.

The California State Bar has announced the recent launch of several investigations against attorneys for misconduct related to loan modification services. This time their process was done right in that they are actually publishing the names of the unusual suspects to protect the public! The California Bar Association reports that these attorneys have “allegedly taken fees for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes. Their non-attorney staff may also be under investigation for unlawfully practicing law.”

They go on to mention that not all attorneys engaged in loan modifications are unscrupulous. The intention of the State Bar is to caution consumers to be careful when dealing with attorneys and others who purport to be able to obtain loan modifications.

They state that “Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes. The list of attorneys currently under investigation is available at:

http://calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10144&n=96395.

Good for the California Bar. Now where are the other state bar associations on this issue? The California Department of Real Estate has their suspect list, which is 100 times larger than this sixteen. What about other professional as well as state and federal regulatory agencies: where’s the beef?

El DORADO HILLS, CA REO SALES DATA FOR AUGUST 2009

Mike West (Heritage Oak Properties) — Wed, 09 Sep 2009 14:00:16 -0500

El Dorado Hills, CA REO (BANK OWNED) SALES DATA FOR AUGUST 2009

This is a continuation of my monthly report on Bank Owned home sales data for El Dorado Hills, CA. This report covers REO homes sold in August of 2009, the latest in my study of more than two years.

There were 10 REO homes sold in August, down from 22 in July. The average days-on-market increased to 36, up from 33 in July, largely because one sold home was on the market for 169 days and represented 10% of the sales. However, a full 50% of the REO homes that sold were on the market for less than two weeks. REO homes are still selling quickly.

The 10 homes sold represent 26.4% of all homes sold in El Dorado Hills, down from 31.5% in July. There are fewer REO homes on the market.

The overall number of homes sold in El Dorado Hills in August dropped considerably from 70 in July to 38 in August.

The cost per square foot of REO homes in June decreased to $ 144, down one dollar from July. The cost per square foot of all homes sold in June decreased to $ 161, also down one dollar from July.

The overall sales price for REO homes was 103.2% of the final asking price, and 99.9% of the original asking price. The banks are pricing these homes well and they are selling fast. The bargains that were once available no longer exist.

The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all home sold: in August, $10.50 per square foot. That is a $ 26.250 savings on a 2500 square foot home, not a small sum.

The data follows:

Folsom, CA REO SALES DATA FOR AUGUST 2009

Mike West (Heritage Oak Properties) — Wed, 09 Sep 2009 13:55:42 -0500

Folsom, CA REO (BANK OWNED) SALES DATA FOR AUGUST 2009

This is a continuation of my study of more than two years of Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in August of 2009.

There were 10 REO homes sold in August, exactly half of the number that sold in July. This is the smallest number of REO homes sold in Folsom during any month for over a year and a reflection of the fact that there are less REO homes on the market. The average days-on-market dropped from 32 in July to 22 in August. A full 70% of the REO homes that sold were on the market less than two weeks. None of the REO homes that sold in August were on the market for more than 90 days. Most are well priced when they hit the market and they are not lasting long.

The 10 homes sold represent only 19.6% of all homes sold in Folsom, down considerably from June and July. The total number of homes that sold in Folsom in August was 51, also down from 65 in July.

The overall home inventory in Folsom is presently 269, a 5.3 month inventory, indicating a seller’s market.

The cost per square foot of REO homes in August increased to $ 179, up from $ 170 in July and $ 159 in June. The cost per square foot of all homes sold in June decreased to $ 187, up five dollars from July.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented only a 4.2% savings for REO buyers. This number has been trending down for several months. Short sales are having an impact here. So REO sales are not the savings for buyers that they once were.

The overall sales price for REO homes was 107.4% of the final asking price, and 105.8% of the original asking price. In August only 20% of the REO homes that sold did so for less than the asking price! The market has changed once again.

However, the banks are still pricing these homes well and in August there was an eight dollar per square foot savings, compared to the cost of all homes sold. That is still a $ 20,000 savings on a 2500 square foot home.

The data follows:

El Dorado Hills REO (Bank Owned) Home Sales Data -- July 2009

Mike West (Heritage Oak Properties) — Tue, 04 Aug 2009 18:04:40 -0500

EL DORADO HILLS, CA REO (BANK OWNED) SALES DATA FOR JULY 2009

This is a continuation of my monthly report on Bank Owned home sales data for El Dorado Hills, CA. This report covers REO homes sold in July of 2009, the latest in my two year long series.

There were 22 REO homes sold in July, five more than sold in June. The average days-on-market dropped to 33, markedly down from 119 in May to 93 in June. REO homes are selling much more quickly. Of the REO homes sold, 50% were on the market for less than two weeks. Much of the older inventory has been cleaned out. Of the 22 REO homes sold, only two were on the market for more than 100 days.

The 22 homes sold represent 31.5% of all homes sold in El Dorado Hills in July.

The cost per square foot of REO homes in July increased to $ 145, up from $ 144 in June and $ 135 in May. Worthy of note, the average cost per square foot of all homes sold in El Dorado Hills in July INCREASED to $ 162, up from $ 161 in June and $ 160 in May. This is the first time in the two years that I have been reporting these statistics that we have had an increase two months in a row.

Could we be at the bottom of the market in El Dorado Hills? A New York Times article published in late July reported that we saw the bottom of the housing market nation wide in April of 2009!

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 10.5% savings for REO buyers. A bigger savings than we have seen before.

The overall sales price for REO homes was 101% of the final asking price, and 99.1% of the original asking price. This indicates two things. First, the asking price of older inventory REO properties were reduced in order to reach the correct market level and, second, proving once again that an expectation of buying a Bank Owned home for fifty cents on the dollar is a pipe dream. Unfortunately, some self-proclaimed experts may still be preaching about 50% savings to the uninformed and gullible. The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all home sold: in June, $17 per square foot. That is a $ 42,500 savings on a 2500 square foot home, not a small sum.

Folsom, CA Sold REO (Bank Owned) Home Sales Data--July 2009

Mike West (Heritage Oak Properties) — Tue, 04 Aug 2009 17:59:33 -0500

Folsom, CA REO (BANK OWNED) SALES DATA FOR JULY 2009

This is a continuation of my monthly report on Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in July of 2009, the latest in my two year long study.

There were 20 REO homes sold in July, six more than sold in June. The average days-on-market increased to 32, up from 30 in June. REO homes are still selling quickly. Of the REO homes sold, 40% were on the market for less than two weeks. Some of the older inventory has been cleaned out. Only one of the homes sold was on the market for over 100 days.

The 20 homes sold represent 30.8% of all homes sold in Folsom, up from 24.6 in June.

The cost per square foot of REO homes in June increased to $ 170, up from $ 159 in June. The cost per square foot of all homes sold in June decreased to $ 182, down three dollars from June.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented only a 6.6% savings for REO buyers.

The overall sales price for REO homes was 99.5% of the final asking price, and 96.3% of the original asking price. This proves once again that an expectation of buying a Bank Owned home for fifty cents on the dollar is a pipe dream. Unfortunately, some self-proclaimed experts may still be preaching about 50% savings to the uninformed and gullible.

The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all home sold: in June, $12 per square foot. That is a $ 30,000 savings on a 2500 square foot home, not a small sum.

Folsom, CA SOLD Home Cost Per Square Foot

Mike West (Heritage Oak Properties) — Tue, 04 Aug 2009 16:16:38 -0500

Folsom, CA SOLD home cost per square foot.

There are many ways to measure property values in the housing market. One that Realtors frequently use is the sold property cost per square foot. This is one of the more valid measurements at our disposal.

I have been measuring the sold REO (Bank Owned) property statistics for Folsom, Ca for two years and post a monthly report of our activity.

I have decided to compare the sold cost per square foot of REO homes and the sold cost per square foot of ALL homes sold. The chart below reports those numbers for the past year and one half. Although there are a few blips, the trends are clear. Housing prices have fallen consistently during the measurement period.

Note that buyers who purchased Bank Owned Homes saved a considerable sum.

El Dorado Hills, CA SOLD Home Sales Data

Mike West (Heritage Oak Properties) — Tue, 04 Aug 2009 15:50:09 -0500

El Dorado Hills, Ca SOLD home cost per square foot.

I have been measuring the sold REO (Bank Owned) property statistics for El Dorado Hills, Ca for two years and post a monthly report of our activity.

One fact worthy of note is that the sold cost for ALL homes sold has increased in June over May, the first month over month increase in some time.

Note the savings each month for buyers who purchase a Bank Owned home.

NEW LISTING IN EL DORADO HILLS--A GIVE AWAY PRICE!

Mike West (Heritage Oak Properties) — Fri, 10 Jul 2009 14:22:13 -0500

Mike West | Greenrock Realty & Finance, Inc. | 916.337.0658

Malcolm Dixon Road, El Dorado Hills, CA

Sensational Country Home

4BR/3BA Single Family House

offered at $340,000

Year Built	1984
Sq Footage	2,158
Bedrooms	4
Bathrooms	3 full, 0 partial
Floors	2
Parking	2 Car garage
Lot Size	1.01 acres
HOA/Maint	$0 per month

DESCRIPTION

This sensational home radiates tranquility. Set in a bucolic section of custom-built homes in El Dorado Hills, it is 2158 square feet and features three (possible 4) bedrooms and three full bathrooms. Glossy wood floors are prominent throughout most of the home with new tile in all three bathrooms and the laundry room. The interior of the home was professionally painted and looks it. The kitchen includes built in oven and microwave, loads of counter space and a breakfast nook. Custom- built cabinets are featured in some of the rooms. All bedrooms and bathrooms are on the main floor. The second floor contains a bonus room and second bonus/storage room. The living room includes high quality surround sound wiring.

The two-car garage is attached and there is space for RV or boat parking. The manicured front yard includes an iron fence and gate. The immense back yard has lawn and vegetable garden close to the home with large oak trees and a natural area further back. There is tons of room back there. A year-round stream flows through the back edge of the parcel.

The property is located a short distance from shopping and downtown services but it feels like you are far out in the country.

see additional photos below

PROPERTY FEATURES

• Central A/C	• Central heat	• High/Vaulted ceiling
• Hardwood floor	• Tile floor	• Living room
• Office/Den	• Breakfast nook	• Dishwasher
• Stove/Oven	• Microwave	• Laundry area - inside
• Yard

COMMUNITY FEATURES

• Garage parking

• Guest parking

• Storage space(s)

ADDITIONAL PHOTOS

Photo 1	Photo 1
Photo 2	Photo 3
Photo 3	Photo 4

Contact info:

Mike West

Greenrock Realty & Finance, Inc.

916.337.0658

For sale by agent/broker

Equal Opportunity Housing

Posted: Jul 5, 2009, 4:17pm PDT

REO (BANK OWNED HOME) SALES DATA FOR EL DORADO HILLS, CA June 2009

Mike West (Heritage Oak Properties) — Fri, 10 Jul 2009 14:17:26 -0500

EL DORADO HILLS, CA REO (BANK OWNED) SALES DATA FOR JUNE 2009

This is a continuation of my monthly report on Bank Owned home sales data for El Dorado Hills, CA. This report covers REO homes sold in June of 2009.

There were seventeen REO homes sold in June, exactly the same number that were sold in May. The average days-on-market dropped from 119 in May to 93 in June, so REO homes sold even more quickly. Of the REO homes sold, only 17.7% were on the market for less than two weeks. This is a much smaller percentage than normal. Some of the older inventory has been cleaned out. Of the seventeen REO homes sold, six were on the market over 100 days; four of those have been on the market for over 200 days.

The seventeen homes sold represent only 33.4% of all homes sold in El Dorado Hills in June, up from 30.4% in May, and 50.0% in March.

The cost per square foot of REO homes in June increased to $ 144, up from $ 133 in May. Worthy of note, the average cost per square foot of all homes sold in June INCREASED to $ 160, up one dollar from the May. This is the first increase we have observed since we started tracking this data almost two years ago. Could we be at the bottom of the market in El Dorado Hills?

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 10% savings for REO buyers. A bigger savings than we have seen before.

The overall sales price for REO homes was 98.7% of the final asking price, and 92.9% of the original asking price. This indicates two things. First, the asking price of older inventory REO properties were reduced significantly in order to reach the correct market level and, second, proving once again that an expectation of buying a Bank Owned home for fifty cents on the dollar is a pipe dream. Unfortunately, some self-proclaimed experts may still be preaching about 50% savings to the uninformed and gullible. The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all home sold: in June, $10 per square foot. That is a $ 25,000 savings on a 2500 square foot home, not a small sum.

Specific Data FOllows:

REO (BANK OWNED) SALES DATA FOR FOLSOM, CA JUNE 2009

Mike West (Heritage Oak Properties) — Fri, 10 Jul 2009 13:53:26 -0500

FOLSOM, CA REO (BANK OWNED) SALES DATA FOR JUNE 2009

This is a continuation of my monthly report on Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in June of 2009.

There were fourteen REO homes sold in June, exactly the same number that were sold in May. The average days-on-market dropped from 42 in May to 30 in June, so REO homes sold even more quickly. Of the REO homes sold, 57.2% were on the market for less than two weeks, confirming the fact that well priced homes sell quickly.

The fourteen homes sold represent only 24.6% of all homes sold in Folsom in June, down from 30.5% in April and 50.0% in March.

The cost per square foot in May decreased to $ 159, down from $ 175 in May. However, the average cost per square foot of all homes sold in Folsom June INCREASED to $ 185, up one dollar from the May. This is the first increase we have observed since we started tracking this data almost two years ago. Could we be at the bottom of the market in Folsom? There is less than a four month inventory, indicating a strong seller’s market! The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 14% savings for REO buyers. A bigger savings than we have seen before.

The final overall sales price for REO homes was 99.7% of the final asking price, and 97.2% of the original asking price, proving once again that an expectation of buying a Bank Owned home for fifty cents on the dollar is a pipe dream. Unfortunately, some self-proclaimed experts may still be preaching about 50% savings to the uninformed and gullible. The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all homes sold: in June, $26 per square foot. That is a $ 65,000 savings on a 2500 square foot home, not a small sum.

Specific Data Follows:

All Work And No Play Makes Jack A Dull Boy. He Should Take Time To Enjoy Nature's Beauty

Mike West (Heritage Oak Properties) — Mon, 29 Jun 2009 18:18:14 -0500

Every once in a while it is good to take your nose away from the grindstone and relax. Photography is my avocation, and when I apply my photographic skills to things growing in my courtyard, I occasionally come up with something worthy of the effort. As a gardener I excel at growing weeds and causing perfectly healthy plants to die.

This weekend, in the 100 degree plus weather, our Lotus plant decided to bloom. The lotus plant is not indigenous to El Dorado Hills, CA. Perhaps for that very reason the Lotus blossom is the most ephemeral of flowers. Each year we don't know if the plant will blossom or not, and when it does it only blossoms once in the summer. The blossom lasts for no more than two or three days.

The two shots below were taken on Saturday and Sunday early morning. It is Monday and, sadly, the blossom is no more. Perhaps next year.

Taken about 8:00 AM Saturday morning.

The same blossom taken at about 8:00 AM Sunday Morning. The blossom is eight inches across.

Enjoy!

THE LATEST NATIONAL MORTGAGE DELIQUENCY NUMBERS

Mike West (Heritage Oak Properties) — Fri, 26 Jun 2009 16:28:37 -0500

The Certified Distressed Property Institute has just released the National Mortgage Delinquency Numbers for the first quarter of 2009. These are statistics compiled by ethe Mortgage Broker's Association and reflect a significant increase in the number of homeowners in trouble with their mortgage.

The Certified Distressed Property Institute trains real estate agents to better help distressed homeowners avoid foreclosure. THeir web site is a wealth of informations on the subject and worth a visit. Check it out at:

http://www.CDPE.com There are over 500,000 licensed real estate agents in California. There are only a little over 8000 certified CDPE agents in the country. I recommend that distressed home owners consult a CDPE agent for assistance.

Distressed homeowners can find help in Sacramento, El Dorado and Placer counties by contacting Mike West, Realtor, CDPE, e-PRO & Sr. Loan Consultant. (916) 337-0658

CONSUMER ALERT - LOAN MODIFICATION FRAUD ExPOSED BY CALIFORNIA DRE

Mike West (Heritage Oak Properties) — Wed, 24 Jun 2009 19:24:13 -0500

CONSUMER ALERT!

California Department of Real Estate issues a fraud warning for Home Owners in Financial Distress!

FINALLY, the California Department of Real Estate has issued a fraud warning to financially distressed California home owners, warning about loan modification scams rampant in the market place today. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, just since last October the DRE has filed more than 200 Desist and Refrain Orders!

Obviously, the hucksters and con artists have found easy pickings with their loan modification scams. Unfortunately, not enough of these people will end up in jail.

A list of the companies that the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp . If you have been considering using a loan modification company, or are presently involved with one, check the list to ensure that they are not included.

The DRE does mention that "not all firms who collect advance fees for loan modification services do so illegally." However, if you are considering employing the services of a company that does charge fees up front they warrant very close scrutiny. Real Estate brokers participating in this practice must have their advance fee agreement reviewed by the DRE legal staff prior to its use. Those not licensed by the DRE do not have to submit to this scrutiny.

The California Association of Realtors reports that there is a new loan modification scam by hucksters using legislative bill number 3648 to make them look like a government entity, complete with a seal closely resembling a government seal. They are not affiliated with the government.

A copy of the complete DRE consumer alert is available on request. Simply e-mail your request to Mike@SellYourVilla.com or call 916 337-0658.

LOAN MODIFICATION II

Mike West (Heritage Oak Properties) — Fri, 19 Jun 2009 17:26:50 -0500

LOAN MODIFICATION

Part II

This is a continuation of yesterday's post on Loan Modification.

The Market In recent years investors were clamoring for ever increasing returns on their investments. Financial markets developed more risky loan products to meet that demand, knowing full well that in order to increase the reward there had to be an increase in risk. These products allowed buyers to qualify for purchases that they could not otherwise afford and, they met the investor's need for a higher return in investment. Real estate related financing was riding high.

Home buyers were seduced into accepting loans that provided initially low monthly payments because those products allowed a buyer to purchase a larger and nicer home. Some even accepted negative amortization loans (a loan with an allowable minimum payment that did not cover the interest cost of servicing the outstanding balance. Each month the shortfall between the minimum acceptable monthly payment and the actual cost to cover the outstanding principal was added to that outstanding principal!). Many buyers found themselves an additional $ 10,000 in debt after having a neg-am loan for only six months!

Then the bubble burst. Values stopped appreciating and immediately went into free fall. Buyers disappeared and the exit strategy for many financially stretched homeowners evaporated. They could not just sell and walk away with a clean financial record as they originally planned. By the time they realized what had happened they were upside down on the largest investment most of us will ever make: our home.

Facing foreclosure is not a pleasant prospect. Foreclosure and bankruptcy are stigmas that remain on a borrower's credit report for seven years, making it difficult or even impossible to make any kind of a purchase on credit for those seven years. Merchants who will extend credit will exact excruciatingly high interest rates.

So, how can one remain in their home and avoid foreclosure?

Unfortunately, many distressed homeowners will not be able to do so. However, there are options that will work for many.

The first step is to attempt to get a loan modification.

How do I qualify for a loan modification? In order to start the process you must ask. Prior to contacting your lien holder you can quickly complete an eligibility test at http://www.MakingHomeAffordable.gov. This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP)

Find a list of mortgage lenders and servicers at http://www.HomeNow.org.

Once you have completed this test it is time to call your lien holder. Do Not Delay. Have the information listed in yesterday's post ready so that you are fully prepared to discuss your situation with them. Approach this call as a problem solving exercise, without emotion or placing blame. The old adage that you can catch more flies with honey than you can with vinegar applies in spades. Different lenders have different names for the department that you should talk to. Common names may be loss mitigation, mortgage modification or H.O.P.E.

Loan Modification Experts A word of caution at this point. In the last year or so we have seen a proliferation of loan modification experts entering the market place. Many collect fees up front: a RED FLAG. Unfortunately, the business is rife with hucksters and con-artists who prey on distressed homeowners. The doctrine of caveat emptor (let the buyer beware) applies. Check references before you open your wallet.

What is a Home Affordable Refinance? If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable Refinance. This program will allow qualified borrowers to refinance their home and often lower payments.

A borrower can find out if their mortgage applies by entering their property information in each of the following web sites.

How do I know if my loan is owned by Freddie Mac?

Website: ww3.freddiemac.com/corporate

How do I Know if my loan is owned by Fannie Mae?

Website: lookup.fanniemae.com/loanlookup

What are the qualifications for a Home Affordable Refinance? According to the resources provided by the government, the following is a list of qualifications:

The owner must occupy the property of a one - four unit property

The loan on the property is owned or securitized by Fannie Mae or Freddie Mac (see links above)

At the time you apply you are current on your mortgage payments (you have been more than 30 days late on your mortgage payments in the last 12 months, or you have had your loan for less than 12 months and you have never missed a payment)

You believe that the amount you owe on your first mortgage is about the same or less than the current market value of your home

You have income sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan

What if I don't qualify, can't afford my home, and owe more than it's worth? You are not alone and foreclosure is not your only option. Some loan servicers are under contract with the investors which prohibit loan modification.

Others may not be willing to work with you for reasons that they will not disclose.

In these instances, you may wish to consider a short sale. A short sale allows you to sell your home for less than you owe and avoid foreclosure. We have clients who completed a short sale two years ago and are presently out shopping for another home.

Agents with the Certified Distressed Property Expert Designation have undergone extensive training in how to process and negotiate short sales. Speak to your market expert to see if you may qualify.

Feel free to contact us. We are always prepared to answer questions and help wherever we can.

Mike West Certified Distressed Property Expert

(916) 337-0658

Loan Modification, What's It All About?

Mike West (Heritage Oak Properties) — Thu, 18 Jun 2009 16:35:12 -0500

LOAN MODIFICATION

It is an unfortunate fact that far too many homeowners are in financial distress right now and are having trouble making their mortgage payment, or have stopped paying all together. Many did not understand all of the ramifications of the commitment that they made when they signed their mortgage papers during escrow. Others understood the possible changes that would be made at some time in the distant future but were sure that the worst case scenario would not happen to them.

Irrespective of the causes of this phenomenon, it has had a major impact on our economy, not to mention the families involved. Many homeowners are struggling to meet their commitments even if they have not incurred financial hardship. Some have decided not to continue to pay for a mortgage with a balance that far exceeds the current market value of their home. Others have incurred a serious financial hardship that makes it impossible for them to continue to make their payments.

So what does a homeowner who is mired mortgage hell suppose to do?

Although most homeowners want to keep their home, the unfortunate truth is that many will not. The individual homeowner’s circumstances and their mind set in dealing with their situation is the key to success.

The first step in trying to save one’s home is through loan modification.

What is a loan modification? A loan modification is a process through which your lien holder changes one or all of the following:

Your interest rate
Your principal balance through a reduction
Your loan terms (examples: from adjustable to fixed rate, extend term of loan from 30 to 40 years, payment reduction for a specific period)

This process can allow borrowers to stay in their property when they can no longer afford their current payments. Homeowner must provide documented proof of any hardship.

Why would a lender modify a loan? It is all about their bottom line! They have realized that in some cases it is better for them to work out a solution with current borrowers to lower payments or possibly improve loan terms in order to keep homeowners in their homes. The average foreclosure can cost a lender from 35 – 60% of the current value of a property, so keeping borrowers in their homes is frequently a cost effective business decision for the lender.

What do I need to qualify for a loan modification? According to the Making Home Affordable web site (http://www.MakingHomeAffordable.gov), you will need the following information for your lender to consider a modification:

Information about your mortgage – such as a copy of your monthly statement

Information about any second mortgage or home equity line of credit on the home

Account balances and minimum payments on all other debts such as student loans, credit cards, installment loans

Your most recent Federal income tax return

Information and statements for all assets and asset accounts

Information about your monthly gross income (before taxes) for your household, including recent pay stubs and documentation covering all other income

It is also advisable to include a letter describing any circumstances that caused your income reduction and/or the increase in other expenses (job loss, divorce, death in family, major illness, etc.).

SHORT SALES 101 Part 1

Mike West (Heritage Oak Properties) — Wed, 17 Jun 2009 17:53:09 -0500

Short Sales

What is a short sale? A short sale is transaction in which the seller is attempting to sell their property for less than they owe the lien holder or lien holders. In almost all cases something has happened that prevents the homeowner from being able to make their mortgage payments.

The difficult part of this process is getting the lien holder or lien holders to accept the short pay. Short sale properties are available everywhere and offer the potential of being a GREAT BUY. However, they usually take a long time to complete and, because many lien holders can not or will not accept a short pay, many attempts at a short sales fail. Also, many buyers give up in frustration and move on to another property because they get tired of waiting for lien holder's approval.

Do I qualify for a Short Sale? Qualifications for a short sale include any or all of the following:

Financial Hardship - an acceptable reason (as determined by the lien holder) causing the homeowner to have trouble affording their mortgage payment. Some acceptable reasons include; death in the family, serious injury impacting a wage earner's income, loss of job, major reduction in income... to name just a few.
Monthly Income Shortfall - You have more month than money.
Insolvency

In all cased the homeowner must document the reason they can not make their payments. Tax returns, pay checks, documentation from employers are part of the paperwork required.

The fact that the value of your home has declined and your mortgage payment is too high given the current market value is not an acceptable reason.

More on Short sales will be posted soon.

California 90 Day Foreclosure Moratorium: Viable Solution or Window Dressing?

Mike West (Heritage Oak Properties) — Tue, 16 Jun 2009 15:53:18 -0500

New Foreclosure Prevention Act For California Now Law

California's new Foreclosure Prevention Act went into effect on May 22, 2009. The object of the exercise is to delay the foreclosure process an additional 90 days, extending the period to a total of 180 days for those who qualify. The object is to provide more time for lenders to work with borrowers to provide loan modifications, turning "non performing assets" into productive loans and keeping borrowers in their homes.

The question is, will it really help or is it just politics as usual? As with so many of these statutes, in order for them to survive the political process little viable substance remains. The end product is narrowly defined and the number of distressed home owners that will benefit is limited.

The 90 day moratorium applies ONLY if:

The loan in default is in first position (a first, not a second)

The loan was recorded between January 1, 2003 and January 1, 2008

The borrower occupied the home as their principal residence at the time the loan became delinquent

The loan servicer has not implemented a "comprehensive loan modification program

The loan is not make, purchased or serviced by a California state

•· or local public housing agency authority and he loan is not

collateral for securities purchased by any such agency

Imposing such a moratorium will not require the loan servicer to violate contractual agreements for investor-owned loans

The borrower has not surrendered the property, as evidenced by a letter confirming surrender of the delivery of the keys to the lender

The borrower is not currently in bankruptcy

The borrower has not contracted with an organization, person or entity whose primary business is advising people who have decided to leave their homes regarding how to extend the foreclosure process and avoid their contractual obligations to mortgages or beneficiaries

It will be next to impossible to find a lender who does not claim to have a "comprehensive loan modification in place." Of course, the lender's definition of a "comprehensive" program may differ slightly from the borrower's definition.

Although contracts between loan servicers and investors are confidential, we assume that a substantial number prohibit the loan servicer from modifying loans.

State legislators are setting up a web site through which lenders can apply for exemption from the moratorium. We expect that site to be busy once it becomes active.

A more extensive review of the statute can be found here:

http://www.cdpe.com/images/fbfiles/files/California_New_Foreclosure_Law.doc

LOAN MODIFICATION: IS THERE A LIGHT AT THE END OF THE TUNNEL?

Mike West (Heritage Oak Properties) — Fri, 12 Jun 2009 13:37:25 -0500

Is there a light at the end of the tunnel?

Feedback indicates that the Federal Making Home Affordable program is having an impact. Unlike the Hope for Homeowners program that was stifled by eligibility requirements and received less than 100 applications nation wide, the Treasury Department reports that over 120,000 homeowners have actually completed loan modifications with the Making Home affordable program.

It is good to hear that a Federal program is actually working. Not just another marketing scam so prevalent in the market place today!

For the complete RISMEDIA story select this link:

http://rismedia.com/2009-06-11/federal-homeowner-program-may-be-making-a-dent-in-foreclosures/

Here is the link directly to the Making Home Affordable program:

www.makinghomeaffordable.gov

As always, let me know if I can be of any assistance in helping you with a distressed property situation. I will be pleased to help.

Mike West

Realtor, Sr. Loan Consultant, e-PRO, Certified Distressed Property Expert

(916) 337-0658

SENIORS BEWARE: NOT ALL REVERSE MORTGAGES ARE EQUAL!

Mike West (Heritage Oak Properties) — Fri, 12 Jun 2009 12:19:14 -0500

SENIORS BEWARE!

Not all reverse mortgages are created equal.

Federal banking regulators are concerned about reverse mortgages and related consumer protection issues.

Reverse mortgages are loans for borrowers over 62 years of age who can live off the equity they have in their homes as they get older. There are no monthly payments for the borrower. They are borrowing their equity. After they die the home becomes the property of the bank.

Most reverse mortgages are insured by the Federal Housing Administration. However, there are new products on the market that are “proprietary.” These products offer the consumer less protection.

Concerned that the “proprietary” reverse mortgages have the earmarks of the subprime mortgages that were a major cause of the mortgage “melt down”, they are working to develop regulations to eliminate misleading marketing.

If you are considering a reverse mortgage make sure that the product you select is federally insured.

For more information select this link:

http://www.money.cnn.com/2009/06/08/real_estate/reverse_mortgages.reut/index?postversion=2009060813