https://activerain.com/blogs/kevinrealtor en-us https://activerain.com/blogsview/1152756/buying-the-worst-home-in-the-best-area The last couple of months have been frustrating for a majority of my buyers. The issue that we are running into is that there are not enough quality homes on the market. I know a lot of you might be thinking that there are a ton of properties in your neighborhood for sale or that are vacant. The key word is quality. Most of my first time buyers are getting an FHA loan (which requires 3% down payment). A home must qualify for FHA financing, meaning if the home is in bad shape the FHA appraiser will not approve the home unless the work is done. Most sellers (banks) list homes low so they don't have to do the work requested by the FHA appraiser. So the homes that are in good condition and can get FHA approval go quickly, because there are so many buyers looking for that type of home. I have a couple of clients that I have written well over 10-15 offers, and we are still looking for a home. My challenge is how to get these qualified clients into a home in their price range, in a decent area, and in decent condition. The solution is the FHA 203K loan. At the end of this entry I am going to put the link to the HUD site. How this works is my clients find a home in a good area that needs work. FHA will loan them the money to fix these properties up and attach the "fix up" money onto the loan. Let's say my clients are approved to $200,000. They find a home in the area they want for $175,000, but it needs a lot of work done to it. The property has sat on the market because a majority of the buyers can't buy the property because it won't go FHA, and the bank is not willing to accept the low ball offers that are coming from investors. So I go in with my buyers and we make an offer at asking price, ($175,000) with our FHA 203K loan. Then my buyers get 2 bids from general contractors to repair anything that needs to be repaired. Also, the buyers can choose flooring, countertops, paint, fixtures, and almost anything else they want for the home. So let's say the bids are around $25,000. An appraiser comes in and figures when the work is completed that the home which is now worth $175,000 will be worth $200,000. The lender will accept the $200,000 appraisal and lend the buyer the money to do the work. So the buyer has a loan for $200,000 and is now able to use $25,000 to fix up their home how they want it. These types of loans take longer than the typical 45 day FHA loan. This loan can take up to 90 days, because of all of the inspections and contractor bids. For most of my buyers this is a great way to get a great home for a great price. This goes along with the saying, ‘buy the worst home in the best area.' Below is the link to the HUD website that explains the loan in more detail. If you or someone you know is looking to buy a home send me an email or just give me a call. http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Tue, 14 Jul 2009 08:50:49 -0700 https://activerain.com/blogsview/1152756/buying-the-worst-home-in-the-best-area https://activerain.com/blogsview/484515/short-sale-awareness April 25, 2008 Short Sale awarenessI was going back and forth on what to write this week in my blog. I was telling my wife that I don't want to sound like a broken record, repeating the same information every week, so she suggested I write about short sales. I looked back and it has been awhile since I wrote about short sales and I am always getting calls from buyers who see a home $50,000 under price--what a steal! But, upon further investigation, I find out it is a short sale and then I have to explain what a short sale is exactly. So in this entry I will explain what a short sale is and what to expect when writing an offer.The definition of a short sale is: a sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. So the owner can sell the home and the bank is the one taking the true loss. There must be a real hardship on the seller's side, which the seller must prove with documentation to the bank. What are some of the negatives for a seller shorting their home? This depends on how the bank reports the sale to the credit bureaus. It can be seen as paid in full or a negotiated payment. A negotiated payment has a more negative effect on their credit. Everyone's credit is affected differently because some people will start to make their house payment with their credit card and some people will stop making credit card payments to make their house payment. As I mentioned before, the bank wants to see a true hardship and if they see that you have money in the bank and a lot of "toys" that you bought with the equity from your house, they might not be as willing to let you just walk away with a little ding on your credit.  Also, it is a long process where you are disclosing your whole life to a bank and asking them to see your situation as a true hardship. Some feel that it is easier to take the huge mark down on their credit and the extra time it will take to buy another home after a foreclosure than deal with a short sale.For a buyer there is no telling when the bank will respond to your offer. This in turn creates frustration for the buyer. I will caution all my buyers that with a short sale it will typically take 3 months to close and the price will likely be higher then the listed price. If the price is reasonable and the listing agent is competent the offer might move more quickly on to the bank.Some of the positive things for short selling your home are that you do not have to pay the excess amount back to the bank, and there is a new law passed by the President that states you do not have to report that short amount as income on your taxes. This is just a temporary bill and will be gone on December 31, 2010; and only the purchase money is forgiven. If you have a question about purchase money give me a call and I can explain it to you. Also, by doing a short sale you rid yourself of the dreaded foreclosure. You can typically buy a home 2-3 years after a short sale in contrast to 7 years after a foreclosure.Now, back to my main point of why a short sale is advertised so much lower than a bank owned property. There are some listing agents that use the short sale as a marketing tool. They advertise the price low to get interest in the property to entice buyers to make an offer. This way the agent can pick up some buyers if this home doesn't work out for them. Some things that you, as a buyer, have to watch out for is that "sweet" deal; if you think it is a great deal, so does everyone else. If homes around this property are selling at $265,000 and this short sale is advertised at $200,000 that is the first sign that this price is more of a mirage than a concrete purchase price. Also, what does the home owner owe on the property? If the seller owes $365,000 and the home is advertised at $200,000 and bank owned homes in the area are selling for $265,000 then why would the bank sell it for so much under market value? They are already giving up $100,000 plus cost at $265,000 so why would they let it go for so much less? I can check the property taxes and see what the owner owes on the property and give you a better idea of what a reasonable purchase price would be. Some agents might say that the banks will sell it for less to avoid the high cost of the foreclosure process. Let's use our example above. The bank is owed $365,000 and the home is on the market for $200,000 in a $265,000 market. That is a difference in price of $65,000. This is a loss to the bank of about 25% from $265,000 to a sale of $200,000. At this point in the market I highly doubt the market will tumble an additional 25% here in California. The bank is better off denying the short sale and letting it go to foreclosure. I just realized that this is a long post. I feel strongly that my clients need to understand the strange aspects of a short sale. I will in the future point all questions regarding short sales to this post on my website. If you have any other questions about short sales give me a call at 951-710-1662.  Sincerely Kevin Williamson Coldwell Banker Shepherd Group www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Fri, 25 Apr 2008 07:03:36 -0700 https://activerain.com/blogsview/484515/short-sale-awareness https://activerain.com/blogsview/478162/the-leak-that-almost-sunk-the-deal I showed an REO property to my first time buyers and they loved it. We came in full price asking for the bank to pay cost. The bank agreed to the offer and we opened escrow. We requested that the bank turn on the utilities to the house so that we could do the home inspection. The next day I went over with the buyers and home inspector. We walked in and in the kitchen ceiling there was a water bubble the size of a large bowl. The home inspector checked up stair and turned off the water to the toilet it had over flowed and been running for the whole day. Needless to say my clients were nervous about buying a home that was now noticeably damaged. I called up the bank they called a contractor and in 6 days the ceiling was patched and the toilet repaired. I was surprised at how quickly the bank took care of the problem. I though we were going to cancel this escrow, my clients were doubting the condition of the rest of the home. But, the home inspector let them know that everything checked out and the all the systems were working fine.Right now we are a week away from closing my clients signed loan docs. today and are excited once again about this home. I seriously couldn't sleep at night, I would go over to the home everyday to check to make sure that the home was not flooded. I am just very grateful that the issue was resolved in a timely matter. Sincerely Kevin Williamson www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Mon, 21 Apr 2008 06:20:14 -0700 https://activerain.com/blogsview/478162/the-leak-that-almost-sunk-the-deal https://activerain.com/blogsview/473263/dissecting-the-data I read the following  brief report online:Southern California's seasonal boost in home sales between February and March was less than half its normal level and a record low, and median prices of sales took a dive, according to a report today from data provider DataQuick Information Systems. A total of 12,808 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in March. That was up 18.8 percent from 10,777 the previous month but down 41.4 percent from 21,856 in March 2007, DataQuick reported. On the surface this news can seem bad. But, sales are up from February, and according to past articles, February is up from January. Prices are still stagnant to negative, but people are out there looking for homes. In my opinion, if April homes sales are up 10% or more from March, then this summer is going to be huge with buyers. Right now in the "slow" months we are seeing gains; imagine what is going to happen in the summer months. There is no bell or alarm that sounds when the market has hit the bottom. The media will report the bottom of the market 6 months after it is already on the way up. You don't have to take my word for it. If you read the media reports you will see more positive news covered in negative jargon. If you need to wait and see, I will continue to keep you posted on what is happening to give you a better idea and feel more secure in your real estate decision. Sincerely Kevin Williamson www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Thu, 17 Apr 2008 09:58:35 -0700 https://activerain.com/blogsview/473263/dissecting-the-data https://activerain.com/blogsview/471308/more-good-news-for-housing I just wanted to share my success in this last month. I have been working with a lot of first time buyers to help get them into a great home. Most of them are looking at reo homes. I have learned to be patient and upfront with my clients about what to expect. This month I have put 3 people in to escrow and have 2 other offers out waiting for response. I am not naive and I know that we still have some ways to go to get out of this mess. I am just grateful that I do not have to convince my buyers that it is a good time to buy, they can see that for themselves. I have a feeling that in our local board we will be losing more agents but that is what happens when the market lingers for over 2 years at a negative growth. This just helps those of us out there working. This year we are going to see some positive changes. We are going from good to great in 08! Sincerely Kevin Williamson Coldwell Banker Shepherd Group http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 16 Apr 2008 05:02:30 -0700 https://activerain.com/blogsview/471308/more-good-news-for-housing https://activerain.com/blogsview/471302/foreclosures-not-as-bad-as-expected-in-the-inland-empire I just read an article from our local newspaper The Press- Enterprise. It stated that we are up in the amount of foreclosed homes from last month by 30%. But, Realtytrac and real estate data source stated that they were surprised that the numbers were not a lot higher. Some of the credit goes to the programs that are out there to help struggling homeowners. We are still expecting to see a large reset of these ARM loans, but reo homes are selling. Most reo agents have seen a surge in the amount of homes sold under $300,000. Meaning there are more  buyers coming out to buy. Just more good news. Sincerely Kevin Williamson www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 16 Apr 2008 04:54:53 -0700 https://activerain.com/blogsview/471302/foreclosures-not-as-bad-as-expected-in-the-inland-empire https://activerain.com/blogsview/463278/pending-home-sales-in-february-up-in-the-west- I heard  in a news report on Tuesday that the amount of homes that went pending in February was down 1.9%. Of course this is a national average. I was sort of surprised because here in my office our open escrows have grown since January. As I looked closer at the data I found some really good news for us here in the Western states. The Pending Home Sales Index is a forward-looking indicator based on contracts signed in February. The PHSI in the Northeast rose 3.2 percent in February (to 71.8) but remains 25.4 percent below a year ago.  In the Midwest, the index declined 3.7 percent (to 82.7) and is 17.4 percent lower than February 2007.  The index in the South fell 5.5 percent in February (to 85.0) and is 30.3 percent below a year ago.  In the West, the index rose 2.1 percent in February (to 95.8) but is 6.1 percent below February 2007. As you can see from this data the West is still putting more homes into escrow, meaning more homes are selling here than other places in the country. I have stated this before; in California we always grow quicker, decline sharper, and rebound faster than almost every state in the union. We are not out of the woods yet. The National Association of REALTOR's states that they predict a national decline this year of about 1.4%. NAR chief economist Lawrence Yun stated, "Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure." He said, "We're looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met."  I am excited to see what will happen this summer. Most of my clients are very anxious to get out and buy a home. There are still loans available that are at low rates with low down payments. Most of my buyers are going FHA and the sellers are willing to pay up to 6% in closing costs. This will cover all the closing costs and the 3% FHA down payment. If you are renting, look at what you are paying and check with a lender to see what you can afford to buy. Then look at what the tax advantages are to owning a home. If you have any questions about those tax benefits give me a call.Sincerely Kevin Williamson Coldwell Banker Shepherd Group www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Thu, 10 Apr 2008 10:53:54 -0700 https://activerain.com/blogsview/463278/pending-home-sales-in-february-up-in-the-west- https://activerain.com/blogsview/463276/pending-home-sales-in-february-up-in-the-west- I heard  in a news report on Tuesday that the amount of homes that went pending in February was down 1.9%. Of course this is a national average. I was sort of surprised because here in my office our open escrows have grown since January. As I looked closer at the data I found some really good news for us here in the Western states. The Pending Home Sales Index is a forward-looking indicator based on contracts signed in February. The PHSI in the Northeast rose 3.2 percent in February (to 71.8) but remains 25.4 percent below a year ago.  In the Midwest, the index declined 3.7 percent (to 82.7) and is 17.4 percent lower than February 2007.  The index in the South fell 5.5 percent in February (to 85.0) and is 30.3 percent below a year ago.  In the West, the index rose 2.1 percent in February (to 95.8) but is 6.1 percent below February 2007. As you can see from this data the West is still putting more homes into escrow, meaning more homes are selling here than other places in the country. I have stated this before; in California we always grow quicker, decline sharper, and rebound faster than almost every state in the union. We are not out of the woods yet. The National Association of REALTOR's states that they predict a national decline this year of about 1.4%. NAR chief economist Lawrence Yun stated, "Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure." He said, "We're looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met."  I am excited to see what will happen this summer. Most of my clients are very anxious to get out and buy a home. There are still loans available that are at low rates with low down payments. Most of my buyers are going FHA and the sellers are willing to pay up to 6% in closing costs. This will cover all the closing costs and the 3% FHA down payment. If you are renting, look at what you are paying and check with a lender to see what you can afford to buy. Then look at what the tax advantages are to owning a home. If you have any questions about those tax benefits give me a call.Sincerely Kevin Williamson Coldwell Banker Shepherd Group www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Thu, 10 Apr 2008 10:53:48 -0700 https://activerain.com/blogsview/463276/pending-home-sales-in-february-up-in-the-west- https://activerain.com/blogsview/459814/california-reo-rush The changes that I have seen in the last couple of weeks have been amazing. I have been writing offers for clients on bank repo's. Nine out of ten repo's have multiple offers on them. A lot of counter offers that I receive from the banks ask for my clients to come in with their highest and best offer to even be considered. Four homes I have written offers on have been on the market for less than a week. When it is a good deal the home goes quick. Many banks receive multiple offers on properties and actually wait to respond so that they can get as many offers as possible to review; it is in the banks best interest to wait. In Riverside, last month, 11% of the homes sold were bank owned and in Moreno Valley 25% were bank owned. So why is there such a change in the market? Easily put, a lot of people have been sitting on the sidelines watching prices go down. But, now they are seeing prices and interest rates go down. After awhile it is too tempting to sit on the sidelines anymore. Some of my clients that I have been communicating with for over a year are finally ready to buy, and they are buying repo's. Many first time buyers are rushing into the market to snatch up these great deals. The deals are not without some frustration. The bank could take 3 weeks to respond to you, the counter could ask you to give up a lot of guarantees, and you typically buy the property "as is". I know there is still bad news coming from the media, but we are seeing more positive numbers each month. I will keep you posted on what is happening. For those of you still sitting on the fence, don't wait too long. Once prices start to level out and home sales increase, interest rates will start to climb.  Sincerely Kevin Williamson with Coldwell Banker Shepherd Group www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Tue, 08 Apr 2008 06:15:21 -0700 https://activerain.com/blogsview/459814/california-reo-rush https://activerain.com/blogsview/433294/more-good-news-for-housing Throughout the week I have read a couple of reports that have shed some positive light on the whole housing situation. With the Fed injecting money into the financial markets and banks desperately trying to help out defaulting homeowners, more good news is coming out in regards to the housing market. Here are a couple of excerpts from these articles.From INMAN News March 20, 2008California's foreclosure rate fell in February compared to January, research and data company ForeclosureRadar reported Wednesday.Foreclosure sales at auction in the state fell 15 percent compared to January, with 16,931 sales at a combined loan value of $6.85 billion. Notices of default dropped 7.6 percent to 37,362, and notices of trustee sale (which set the auction date and time) fell 20 percent."February declines are a welcome break from the astonishing increases in December 2007 and January 2008," said Sean O'Toole, ForeclosureRadar founder, in a statement. Click HERE to read full report.From INMAN News  March 20 , 2008Long-term mortgage rates tumbled this week after the Fed cut a key short-term interest rate because of news that inflation in February was weaker than expected.The average rate on 30-year fixed mortgages dropped to 5.87 percent from last week's 6.13 percent, and the average 15-year fixed rate plunged to 5.27 percent from 5.6 percent. Click HERE to read full report.From the Anderson Report March 14, 2008In its first quarterly report of 2008, the UCLA Anderson Forecast remains confident the national economy was not in a recession through January 2008 and continues to forecast weak growth but no official recession in 2008.  Click HERE to read full report.From a more local point of view this week I have written 4 offers. Out of those 4, two homes have multiple offers written by other buyers. Some of my buyers are getting beaten out . I have one individual who has been beaten out of 4 homes. He is at the point right now where he is coming in at above asking price and not asking for closing costs. My mantra for this week is: if you think the home is a steal, then so does everyone else. Sincerely Kevin Williamson Coldwell Banker Shepherd Group www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Fri, 21 Mar 2008 04:37:49 -0700 https://activerain.com/blogsview/433294/more-good-news-for-housing https://activerain.com/blogsview/430053/realtors-will-always-be-in-demand I read an article today which stated that even with the amount of information that is available online for homeowners and buyers, most people still feel the need to consult a REALTOR. Of course I believe that if you want to protect yourself, you need to consult a professional. Most of us love information--we love to know what is happening in a game right now or what is happening with the latest celebrity gossip. We are information machines, always seeking more. On my website I acknowledge that and allow people the opportunity to get as much information about real estate as they would like. But, when it comes time to sign a contract for a home worth hundreds of thousands of dollars, most people really want someone sitting next to them who knows the contract and the workings of the escrow process. Some buyers enjoy finding the home on their own, checking neighborhoods that they love, or school districts that they know. A REALTOR can help with all of these things and also locate and research certain things about an area such as taxes, future development, Megan's law, and true comparables from homes that have sold in the past months. As a REALTOR I have taken time to go to conferences and meetings to learn more about ways to help better protect my clients. Many industries have been negatively affected by online shoppers: music stores, travel agents, florists, and many many more. But there are a lot of people that will do their real estate homework online and then give their local REALTOR a call. I would like to hear back from each of you on how you feel about the need for a REALTOR. If you do not want me to know who you are that is fine, you can reply by clicking the Contact Me button and just type in bogus information along with how you really feel. I appreciate all of you that respond to these weblog posts--it really helps me to make my website and marketing plan more effective.  For your information: Long-term mortgage interest rates continued to fall Friday, and the benchmark 10-year Treasury bond yield sank to 3.44 percent. The 30-year fixed-rate average dropped to 5.89 percent, and the 15-year fixed rate fell to 5.22 percent. The 1-year adjustable rate, however, climbed to 5.11 percent.  Sincerely Kevin Williamson Coldwell Banker Shepherd Group http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 19 Mar 2008 05:04:08 -0700 https://activerain.com/blogsview/430053/realtors-will-always-be-in-demand https://activerain.com/blogsview/423348/reo-listings- Does anyone know how to get in contact with any banks about getting an REO account. I have been calling and emailing asset companies with no success. I keep receiving the comment that they have enough REO agents or that they are too busy to investigate anymore. Any good advice would be very appreciated. Thanks Sincerely Kevin Williamson REALTOR http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Fri, 14 Mar 2008 09:59:26 -0700 https://activerain.com/blogsview/423348/reo-listings- https://activerain.com/blogsview/421538/california-fast-facts Fast Facts      Calif. median home price - January 08: $430,370(Source: C.A.R.)  Calif. highest median home price by C.A.R. region January 08: Santa Barbara So. Coast $1,135,000 (Source: C.A.R.) Calif. lowest median home price by C.A.R. region January 08: High Desert $234,310 (Source: C.A.R.) Calif. First-time Buyer Affordability Index - Third Quarter 07: 33 percent (Source: C.A.R.) Mortgage rates - week ending 03/06/08 30-yr. fixed: 6.03% Fees/points: 0.5% 15-yr. fixed: 5.47% Fees/points: 0.5% 1-yr. adjustable: 4.94% Fees/points: 0.5% (Source: Freddie Mac)   Sincerely Kevin Williamson http://www.williamsonteam.netThis information was originally from the CAR.org website Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Thu, 13 Mar 2008 09:07:11 -0700 https://activerain.com/blogsview/421538/california-fast-facts https://activerain.com/blogsview/411525/fha-raises-inland-empire-loan-limits-to-stimulate-housing-market- With the new FHA loans, home buyers can now buy more and homeowners can refinance out of unaffordable mortgages into more secure loans. The Federal Housing Administration raised the limits; these limits will only be effective for about a year. Although, there is legislation in the works to make the limits permanent.  Riverside and San Bernardino FHA loans have climbed from limits of $362,00 to $500,000.Many mortgage brokers were pleasantly surprised with the news-many had expected Inland Southern California to receive a much smaller benefit from the new loan amounts. The new ceilings vary from county to county, and are based on the median house price in that county.The adjustments are part of the economic stimulus package, making federally backed mortgages accessible to more buyers. These new limits won't cure all of the woes in the housing market, but many housing and mortgage experts say that this is a step in the right direction.The median home price in Riverside county was higher than many expected. Dataquick posted it as $331,500. The FHA posted it as $400,000. The San Bernardino median home price is $298,000.Here are a couple of key advantages concerning FHA Loans: FHA secured mortgages require 3% down from the buyer. Other mortgages are requesting 10%, even up to 20%. This makes the affordability more accessible to first time home buyers. The down payment can also be a gift from an employer, family member or a nonprofit organization.  So kids, it is time to hit up your parents for some help. The credit score of buyers can be lower than with other loans. The credit history still has to be good, but the FHA is not as tough about the credit score.Summarizing, what this change in FHA lending policy means to Inland residents: ·         Loans can be written for as much as $500,000. The previous cap was             $362,790.        ·         Higher loan limits are applicable to all FHA-insured mortgage loans starting           March 5, 2008 and they will last until Dec. 31, 2008.·         Qualifications are less rigid than those of other loans. •         3% down payment. Sincerely Kevin Williamson local REALTOR www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Fri, 07 Mar 2008 03:42:17 -0800 https://activerain.com/blogsview/411525/fha-raises-inland-empire-loan-limits-to-stimulate-housing-market- https://activerain.com/blogsview/409981/local-fha-loan-limits Today the activerain community is buzzing with the great news about the FHA loan limits. I have some great buyers that will fit perfectly into this type of loan. With the median home price here still high more buyers are able to qualify for these homes. In the city of Riverside I am seeing so much growth on the commercial end. It never seems to stop. There are so many companies coming here because it is still relatively cheap in comparison to our surrounding counties. I hope that this year will be the years where we will start to see a more positive turn around in the market. I am receiving more and more calls from buyers who are looking at the local market and seeing some really good deals. And I think with the FHA loan limits more and more of those homes are becoming obtainable. Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Thu, 06 Mar 2008 05:17:36 -0800 https://activerain.com/blogsview/409981/local-fha-loan-limits https://activerain.com/blogsview/409406/requesting-inbound-links I am wondering how these inbound links work. I spoke with my website provider and they said that is a good way to get my website brought up in the search engines. Is this true? I was told to search for quality inbound links and I figured this is the best place to start. So anyone who would be willing to share links with me would be great. I created a business partner link page on my website and will add your link with your info and photo if you would like. Any help to move my website up the search engines would be very much appreciated. Thanks Kevin www.williamsonteam.net Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 05 Mar 2008 14:12:06 -0800 https://activerain.com/blogsview/409406/requesting-inbound-links https://activerain.com/blogsview/408921/property-reduction--tax-review I found this information online at the county website. It states that you may be eligible for a reduction in your taxes. Here is an example of how it works: If you bought your home for $400,000 two years ago an now it is worth $350,000 then you may be eligible for a reduction in your yearly taxes. It does not apply if you pulled out money from your homes equity and now your homes value is less than your mortgage.If you have any other question visit the County Assessor website at http://activerain.com/action/blogs_admin/www.riversideacr.com%20%20 .  There is a number to call and a form that you can download in a PDF format.  When you get to the website click on the Decline in Value (Prop 8) button on the left. (I copied this information directly from the Assessor website)Due to recent housing market conditions within the County of Riverside, the Assessor‘s office has begun to review the value of properties purchased within the last year in an effort to determine if value reductions are warranted under Proposition 8 (Prop. 8). If you believe the assessed value of your home is greater than its current market value, you may request a review by filling out and returning a Decline-in-Value Reassessment Application (Prop. 8) form. Our staff will review your request and provide written notification regarding their findings. If you know of anyone who might find this information important please forward this email on to them. If you would are curious about your homes value simply click on the "Your Home Value" button on the left and fill out the form.Sincerely Kevin Williamson local REALTOR http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 05 Mar 2008 08:31:43 -0800 https://activerain.com/blogsview/408921/property-reduction--tax-review https://activerain.com/blogsview/408915/avoiding-foreclosure In the last couple of months I have received some concerning emails from home owner about their home and the threat of foreclosure. With recent drags on the real estate market a lot of these individuals can not sell their home because they owe more then their home is worth. Some are worried about losing the home to the bank and the negative effect it will have on their credit. My thought on this is contact your bank. If you are in a position where you fear you will lose your home call your lender and express your concerns to them. The bank does not want you to lose your home. If your home goes into foreclosure the bank will have to sell it for less then they are owed and the home will sit vacant for at lease 6 months with no payments coming into the bank. There are many banks that are making proactive steps to help home owner in trouble. They have set up call center to call loan that will reset in a couple of months, they sent out information about ways they can refinance your home to a more secure rate, also the bank can help you get a hold of any government center that has ways to help you. A lot of the lenders that I speak with see that this problem is not going away and that it is up to them to help out those who are struggling with their payment. If you have fears about the future of your home call your lender and find out your options to help you remain in your home. If you have to sell your home call me and we can discuss options that you have that will not negatively affect your credit score.Sincerely Kevin Williamson local REALTOR http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 05 Mar 2008 08:28:52 -0800 https://activerain.com/blogsview/408915/avoiding-foreclosure https://activerain.com/blogsview/408912/new-home-builders Last week my office took a tour of new model homes in the city of Riverside. I was amazed at the prices of some of these homes. I took some time and spoke with a couple of the sales people at the front office. Each of them said pretty much the same thing, “These builders are desperate and have to sell.” The prices in some communities were over $100,000 less than the same time last year and the builders were still offering incentives on top of the price decrease. When you are looking for a home it is always a good idea to ask yourself “who are the most motivated sellers?” In this market the most motivated sellers are first the bank repo’s and next the home builders. The model homes have to sell, they make their profit off of the last couple of phases so they need to get through the first couple of phases to pay of their bank loans and then they can make a profit months or years after the first home sells. So they are willing to offer deep discounts to move their inventory. Now these builders are offering great incentives to get you through the door. One of the things that they won’t tell you while you are sitting down signing a contract is that without your own representatives they automatically represent you and the home builder. This is not a good position for you as the buyer to be in. There are costs that they might add on to your closing cost that you might not be aware of. They might stack some of the cost customary paid by the seller on you as the buyer. As a real estate professional, home builders are allowing me to represent you. It is at no cost to you, the home builder picks up my fees. They still offer the same discounts and incentives, but you are not represented by the builder but by a REALTOR® who is only representing you. I have access to all of the home builders in Riverside and San Bernardino counties. If you are interested in a new home give me a call first and I can set up a time to show you the homes and explain to you things about the community that the builder might not, things such as taxes, mello roos, HOA, and community restrictions. If you or someone you know might be interested in a new home purchase give me a call at 951-710-1662 and we can discuss what options are best for you. Sincerely Kevin Williamson local REALTOR http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 05 Mar 2008 08:27:49 -0800 https://activerain.com/blogsview/408912/new-home-builders https://activerain.com/blogsview/408903/government-intervention-not-bailouts If you have been watching the news this last week, you noticed there has been a lot of talk about our country's economic status. Federal Reserve Chairman Ben Bernanke gave an economic outlook for the next coming months: he pretty much stated that it is not going to get a whole lot better. The economy will still crawl along with slight growth, but there are still fears of negative growth in this first quarter of 2008. The odd thing is that that has been the statement for the last 2 quarters. But in spite of those predictions we have continued to post positive numbers. Now this weblog is titled "Local Inland Empire Weblog" so I will focus on local items, even though the national economy does directly effect us here. Home prices have dropped here in the Southern California region by about 21% compared to the same time a year ago. The amount of homes sold in 2007 also dropped by about 30%. This is not good news, so how is this mess going to be fixed? First, the government has raised the FHA loan limits from $362,000 to $526,000. This number varies depending on the area in California. Higher loan limits mean that more home owners can refinance their homes to a more secure loan. It also means that home buyers can purchase a home with as little as 3% down. With these new loan limits we have seen the amount of Californians who can buy a home go from 25% to 33%. Simply put, more people can buy a home.The second item that the government is doing to help the struggling home market is setting up more strict laws combating predatory lending. Thus, getting rid of most "exotic" loans on the market. People will have to come in with money down-not necessarily 20% but at least 3%. People are still worried about buying right now, but as I have mentioned before, there has never been a time when home inventory is up, interest rates are down, and home prices are down significantly.The last item I will mention that the government is doing is speaking with lenders to help  out struggling homeowners. Banks are suffering now also-it seems that almost every market is struggling. Every business has felt the negative effects of this market. I would like to end this entry with two questions:  Has your job been effected by this housing market downturn? What do you suggest should happen to right this market?Sincerely Kevin Williamson local REALTOR http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 05 Mar 2008 08:22:26 -0800 https://activerain.com/blogsview/408903/government-intervention-not-bailouts https://activerain.com/blogsview/408887/buyers--should-you-wait-for-the-bottom-of-the-market- A couple of days ago I read an article from the msnmoney.com report. It was titled Buyers: Should you wait for the market bottom?  By Melinda Fulmer. I thought it was interesting to see a report from a major news source that was actually positive news on the market. In the body of the article the writer gave 5 reasons to buy right now. The reasons are:1. Prices in the neighborhood you are interested in are relatively stable. Either they are holding their own or increasing, or the pace of decline is slowing significantly. If you have to move and don't like apartments, the small penalty you pay for missing the bottom may not mean much. 2. You plan to stay in the home for more than five years. If you can stick it out that long before selling, economists say you'll probably ride out any downturn and come out ahead on price. 3. Your rent rivals a mortgage payment. If you can afford to buy, it can give you one bonus that renting can't: the mortgage-interest deduction on your taxes. If you rent, this next tax season look at what you are paying in taxes and if you find yourself paying a huge amount call me and I will show you how owning a home can save you thousands in taxes. 4. You've found the right house in the right area for you. The schools are great. You love the area and know it would be hard to find another house like the one you have your eye on. In a better market, you would most likely have much more competition for that home. 5. You've built equity in your house and are moving to a place where homes are cheaper. In your new market, your money will go a lot further. With each of the buyers that I am working with each one of them fits into at least 2 of these reasons. Most people who have been waiting have figured out that with the taxes they will be saving and the rising cost of rents then it is actually cheaper to purchase a home then to continue to rent. I have been pleasantly surprise these last couple of weeks because more buyers and investors have been calling looking to get the buying process started. Most of these individuals are ready to buy and are willing to take a small hit if their home equity goes down. If you have any questions regarding the home buying process check out my Free Reports page, it is full of helpful tips to walk you through the whole process.Sincerely Kevin Williamson local REALTOR http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 05 Mar 2008 08:07:40 -0800 https://activerain.com/blogsview/408887/buyers--should-you-wait-for-the-bottom-of-the-market- https://activerain.com/blogsview/360649/real-estate-still-is-a-good-long-term-investment With interest rates at historic lows, house prices favorable, and the housing supply through the roof, this is the trifecta for home buyers. The last couple of years the housing market has in reality taken a dive. Buyers have run for the hills to wait out this mortgage mess. The main questions is has it hit bottom yet. Most key economists and politicians have realized that the market has hit rock bottom. Builders of new homes have slowed their activity thereby allowing their inventory to reduce. Congress and the President are actively talking about a stimulus program. (Of course, it doesn't hurt to have elections later this year.) Although consumer sentiment is currently negative, this will change. As soon as potential homebuyers understand that the overbuilding frenzy of the past decade has stopped and the recent, short-term sudden decline in home values has ceased, they will realize that this IS the best time to buy a new or existing home! Some future buyers might still be skittish. But, investors have been calling my office in the last couple of weeks asking about what homes could rent for, what do they need to put down, and can a home rent for more than the mortgage is? The average 4 bedroom home in Riverside is renting for $1795 a month. Most lenders are asking for 5-10% down on a home. There are a lot of homes that are in decent areas in decent condition in between $200,000-$250,000. I was doing some quick stats to find out if an investor bought a home for $250,000 and put 10% down ($25K), at an interest rate of 6% for a 30 year fixed loan their payment would be $1,348. If the average rent is $1795 then that would be a $447 a month in profit. I was pretty conservative on these numbers. The potential for a long term investment is there. The days of buying and flipping a home are long gone but the potential for a long term investment is still going strong.  I have a question to pose. Where do you think all of these individuals are going who are losing their homes? They have not lost their jobs. A very small percentage of them are experiencing some kind of dire situation. All of these people need a place to live. They are moving into rentals. The rental market is the strongest it has ever been. There are many people who can't afford a $2500 mortgage but can comfortably afford an $1800 rent.Sincerely Kevin Williamson local REALTOR http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Thu, 31 Jan 2008 07:07:21 -0800 https://activerain.com/blogsview/360649/real-estate-still-is-a-good-long-term-investment https://activerain.com/blogsview/351400/new-mortgage-legislation I am always coming across interesting articles that might help my clients understand the real estate process a little easier.In congress there are two important bills that will help out struggling home owners. The first is H.R. 1852 - Expanding American Homeownership Act of 2007. This bill will help out first time buyers with higher government lending limits. Currently they are at $362,000 for a secure governmnet backed loan, this legistation will raise the limit to $417,000. Which will help those looking to buy a home in the Inland empire. The next piece of legistation is H.R. 3648 - Mortgage Forgiveness Debt Relief Act of 2007, The bill gives a tax break to homeowners who have mortgage debt forgiven as part of a foreclosure or renegotiation of a loan. No taxes would be owed on the value of any debt forgiven or written off. Currently such debt forgiveness is taxable income. This was actually just signed into law by the president last week. "This is going to make a happy holiday for many homeowners," Bush said of the bill moments before signing it into law. In our local area home prices have dropped on average 11.9 percent from November 06 to November 07. We all expected a drop like this. There is no surprise with these numbers. The amount of resale homes that went pending in November has gone up from October. I have personally seen a lot more activity out in the housing market. Three of my buyers that I am working with have submitted offers on a property to find out that there are already other offers submitted. I am coming in contact with more and more buyers that are seeing the benefits of buying right now. With interest rates low, home prices are favorable, and there are a lot of homes to choose from. More renters are becoming home owners. 2007 was a tough year I know a lot of agents that have left the business. It is sad to see them go, but in the coming months we will start to see  more qualified and professional REALTORS. We should start to see a lot of positive changes in the first or second quarter of 2008. If you have any questions feel free to email me or call me at 951-710-1662. Sincerely Kevin Williamson local REALTOR http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Thu, 24 Jan 2008 08:06:19 -0800 https://activerain.com/blogsview/351400/new-mortgage-legislation https://activerain.com/blogsview/349672/where-do-you-get-your-real-estate-news- I read an article online at http://www.rismedia.com/ titled "Where the Truth about Today's Market Really Lies".  As you look at the title you might read the word "Lies" as where someone can really find the truth of the real estate market. But, as you read further on down in the article you find that the word "Lies" is in reality defined as untruths. This article was insightful to me as a REALTOR to see the impact of the media on the housing market. In this entry I wanted to ask a couple of questions and see just where all of you get your real estate news. I am hoping that I will receive more feedback from all of you and not just comments from my regulars. My first question is simple. Where do you get your real estate news? I tend to go online to different sources from the national to local media to get me information. I also go to real estate sites to see how the state of California is doing as a whole. In the last couple of months I have seen a change in the news coming out of our local real estate sector. It has been on a more positive note. Pending homes were up in November and home prices were up slightly (.2%) from October to November. I personally have been seeing the hits to my website and calls to my office also increase, even though this is suppose to be the slow time of the year. I am also running across more and more motivated buyers who are looking for and, in turn getting good deals on homes. Not everything is all rosy there are still a large amount of foreclosed and reposed homes on the market. But, in Riverside out of 134 homes sold in November 15 or 11% of the homes sold were repos. In Moreno Valley out of 78 homes sold 11 or 14.1% were reposed homes. With the changes in some of the legislation being passed we are going to see more home owners who are in trouble being able to short sale their home and have their taxes from that loss forgiven( see my last blog entry). This will dramatically reduce the amount of foreclosed homes.  In the above mentioned article I ran across this quote: "The printed word has a dramatic way of influencing people's perspectives," says Peltier, citing a Nov. 28 report on Bloomberg.com that existing home sales fell "to the lowest level in at least eight years as loan restrictions and the prospect of further price declines deters buyers.""You keep reading that, if you're an intelligent buyer, that will cause you to sit on the sidelines," Peltier says. "If they said sales were slower than expected but the industry is still on track to the sixth best year ever, that's a way of not glossing over the slowdown but comparing it to the last six or seven years of a tremendously overheated marketplace."How do you see the market at this time? This is the sixth best year ever. Is that bad news? As an agent I like to see the glass as half full. I am able to see changes in the market before the media reports on them. So my view is really one sided. That is why I would like some feed back from you. Do you believe this is a good market to buy in or not?Any comments will help, I would love to share your views with all of my subscribers. As always I won't mention your name in my blog. So please respond to one or all of these questions by clicking on the "Contact Me" button and leaving your responses. Thanks for your time.Sincerely Kevin Williamson local REALTOR http://www.williamsonteam.net/ Kevin Williamson, Homes for Sale Moreno Valley (Coldwell Banker Shepherd Group) Wed, 23 Jan 2008 04:30:05 -0800 https://activerain.com/blogsview/349672/where-do-you-get-your-real-estate-news-