Chico, CA

CHICO HOUSES, First Time Buyers Set New Record 2009, CHICO REAL ESTATE

The percentage of 1st Time Homes Buyers measured in the overall home buying market for 2009 grew to 47 percent according to National Association of REALTORS Profile of Home Buyers and Sellers. This breaks the previous record of 44% set in 1991. In 1991 1st Time Home Buyers market participation triggered the start of the economic turnaround for the period.

• Typical home purchase price - $156,000

• Median Income - $61,600

• Loan Type

55% - FHA

8% - VA

96% - Fixed Rate

• Down payment Source:

61% - Saving

22% - Gift - Friends/family/parent

6% - Loan – Friend/family

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• Did you know there are still 100 percent home loans available in certain areas?

INFORMATION PHONE: 530-370-1818 email: steve@chainrealestate.net

This information is provided by your Realtor, and is not a substitute for the advice of your legal or tax adviser. This information is provided as an example of the types of evaluations that are helpful, to Buyers and Sellers, when considering real estate transactions. Chico Real Estate

Chico Real Estate, BUY A HOME NOW! ARE YOU KIDDING? Chico Houses

There are 3 factors contributing to the Buyer's Market in Chico now. They are PRICE, INTEREST RATES and TAX CREDITS. Let's consider each of them and do some economic forecasting of our own.

PRICE:

• 642 Homes have sold across all price ranges and have averaged 71 days on the market.
• The 2009 Homes Sold price range has been $91,750 to $930,000. with an average price of $263,250. Number of homes sold 642. source: SNVMLS
• CAR economist's 2010 economic forecast suggests a price increase this next year of 3.3%. source: CAR Chico Real Estate

INTEREST RATES:

• Present interest rates are in the 5% range. While the Federal Reserve Bank lending rate of 0-.025% is holding down rates short term, the fundamentals call for higher interest rates.
• Economists are suggesting rates will likely edge upward beginning 3rd Quarter 2010.
• While forecasters may predict possible increases in inventory levels. Regardless of inventory levels interest rate increases have a dynamic effect on housing affordability.

TAX CREDITS:

• The 1st Time Buyer Tax Credit of $8,000 and the Existing Home Buyer Tax Credit of $6,500 require an executed purchase contract by April 30, 2010 and close of escrow by June 30,2010. IRS Tax Info

These are my 3 reasons to: BUY A HOME NOW! I'M NOT KIDDING. Chico Real Estate

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PHONE: 530-370-1818 email: steve@chainrealestate.net

This information is provided by your Realtor, and is not a substitute for the advice of your legal or tax adviser. This information is provided as an example of the types of evaluations that are helpful, to Buyers and Sellers, when considering real estate transactions. Chico Real Estate

Chico Real Estate, I NEED TO SHORT SALE MY HOME !!! Are you sure? Part II of II, Chico Houses

LOAN MODIFICATION --- SHORT SALE --- FORECLOSURE

How many times have you heard someone mention the term Short Selling a home? Why would you want to Short Sell your home? Are you behind on mortgage payments and owe more than the market value of your home? Short Sale MAYBE the solution, but have you considered all your options?

In Part I of our series we discussed the Loan Modification as the first step in pursuing a solution to a mortgage problem. Today we will look at some of the main issues to consider with a Short Sale versus Foreclosure on a home. Chico Real Estate

SHORT SALE: Selling a property for less than the amount owed on the mortgage(s) including any 1st and 2nd mortgage. If there are 1st and 2nd mortgages the approval of both lenders will be required .

Things to Consider:

1. Recourse Debt: If you sell your home for less than the amount owed the lender may have legal right to pursue collection at a later time. Debt relief may be considered taxable gain by the IRS. It is important that you find out the type of debt, and the agreement you are making with your lender(s). Purchase money loans versus cashout loans, that were not used to increase the value of the property, maybe handled differently by the lender and/or IRS.
2. Legal Counsel/Tax Advise: Seek competent Legal counsel and Tax advice before entering into any agreement and determine which course of actionis right for you.
3. Credit Rating: Advisers have different opinions on the impact to credit scores from either a Short Sale or Foreclosure. There are a number of factors that determine how quickly your credit will recover. Some lenders would lend in 2-3 years and some would lend in 2 to5-7 years relative to Short-Sale versus Foreclosure history.
4. 3rd Party liens: IRS, property tax, HOA; mechanics liens and judgments reduce the likely hood of a successful Short Sale. At the very least these items prolong a process that generally takes more time than a standard real estate transaction.
5. Current Payment Status: If a payment has been missed it is wise to seek solutions as soon as possible. Pursuing a Short Sale generally does not stop the Foreclosure process.
6. Beware of any company that guarantees your Short Sale success. There are many factors that influence the success of Short Sales and a number of those factors are beyond the control of the Seller and the Agent.
7. Sales Commissions are paid by the Lender: There is no benefit in attempting to Short Sale your home as a, For Sale By Owner (FSBO). The amount of work involved in working with the lender is extraordinary.
8. P.U.S.H: Prepare for a sale. Utilize all available resources. Stage the home to sell. Hope for the best. A positive attitude is healthy and helpful in making decisions and processing all of life's experiences.

FORECLOSURE: Process by which a property owner's rights of ownership are terminated by the party of legal interest (lender). This process varies from state to state. In California the most common method is through non-judicial foreclosure /Trustee's Sale. Although a judicial foreclosure provides the lender additional rights it takes longer and is not common practice in California.

Things to Consider:

1. Recourse Debt: If your home is foreclosed and the lender sells the property for less than is owed, the lender may have legal right to pursue collection at a later time. Debt relief may be considered taxable gain by the IRS. It is important that you find out the type of debt on the property. Determine whether the mortgages were purchase money loans versus cashout, home equity loans. Loans that were not used to increase the value of the property, maybe handled differently by the lender or IRS.
2. 3rd Party liens: IRS, property tax, HOA; mechanics liens and judgments may not survive the foreclosure process.
3. Legal Counsel/Tax Advise: I would like to imphasize seek competent Legal counsel and Tax advice before entering into any agreement and determine which course of action is right for you. Chico, CA Real Estate

If you have questions help is a phone call away 530-347-6122 or email steve@chainrealestate.net

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This information is provided by your Realtor, and is not a substitute for the advice of your legal or tax adviser. This information is provided as an example of the types of evaluations that are helpful, to Buyers and Sellers, when considering real estate transactions. Chico Real Estate

Chico Real Estate, I NEED TO SHORT SALE MY HOME !!! Are you sure? Part I of II, Chico Houses

LOAN MODIFICATION --- SHORT SALE --- FORECLOSURE

How many times have you heard someone mention Short Selling a home in the recent real estate market? Why would you want to Short Sell your home? Are you behind on mortgage payments and owe more than the market value of your home? Short Sale MAYBE the solution, but have you considered all your options? First things first, the loan modification should be the first option you consider. Chico Real Estate

LOAN MODIFICATION: A Change in interest, term or loan principal resulting in reduced payments. You as the homeowner may contact your lender. Most lenders are motivated to help you stay in your home. You will need to provide a list of information and documentation to be considered for a loan modification. Loan modifications may be temporary or permanent depending on the lender and your agreement. Free assistance is available from FHA and HOPE Alliance.

Things to Consider:

1. Beware of any company that requests up front payment or requests you sign over your rights to your home. There are companies that provide assistance in obtaining loan modifications. It is illegal SB94, in California, to request up front payments or progressive payments for so called services. California Licensed Real Estate Agents may assist you with loan modifications.

2. Beware of any company that suggests that you short sell your property without first at least considering the loan modification process.

3. Not all lenders are the same: The programs that are available will vary widely depending on whether you have a conventional, FHA, fannie mae, freddie mac loan and your loan servicer.

4. Repayment ability: If your loan payment is to be reduced you will need to demonstrate repayment ability. If you have had a event, like a job loss, or other change that hinders your ability to make the mortgage payments, then you should also consider the other options available to you.

5. Current Payment Status: You do not have to miss payments to seek a loan modification. Check with your lender to find out their policy.

If you have questions help is a phone call away 530-347-6122 or email steve@chainrealestate.net

SEARCH CHICO REAL ESTATE SEARCH CHICO INFORMATION

This information is provided by your Realtor, and is not a substitute for the advice of your legal or tax adviser. This information is provided as an example of the types of evaluations that are helpful, to Buyers and Sellers, when considering real estate transactions. Chico Real Estate