About Del Norte County, CA

How do you cope with the reality of foreclosure or imminent bankruptcy?

Someone very near and dear to me is facing foreclosure. There is no one left to borrow from, their bankruptcy is completed and the end (foreclosure) is looming near.

My friend is overwhelmed and depressed. She has lived in her home for over 25 years and wants very much to stay there, but the faltering economy is threatening to claim them as another victim.

I made a few suggestions to my friend and if you have any other suggestions, don't hesitate to share, please.

I've been married for 29 wonderful years to a great guy and we have raised 5 lovely children on one salary while I was a stay at home mom. There were some very rough financial times, which of course led to marital stress and even physical illness at one point.

• When times got tough for us, both my husband and myself would look for new avenues of earning potential. My husband was a truck driver for years in the 80's and he was tired of getting laid off when the companies he drove for were swallowed up in a hostile takeover. He decided to go to school and get a teaching credential. It was very difficult, but we focused on the end result and after two years of school, he graduated. If you never start, you can never finish.
  
  
• While Garry was in school, everyone had to pitch in. Even the kids (they were all under 10) helped collect cans and picked berries with me to sell to restaurants. It's amazing how far you can stretch a dollar when you have to.
  
  
• Once my husband Garry became a teacher, it was evident he needed to do more than just teach if we were going to eat. During this period I cleaned houses for extra income and he took a course in classroom management and became the district mentor teacher helping dozens of teachers become better at their profession. This led to several years of workshops and greater earnings. At various times he coached sports, was teacher in charge, did tile and brick jobs and whatever else he needed to do to keep all the financial balls in the air.
  
  
• We purchased homes over the years, but always the WORST home in the best neighborhood we could afford. I wanted to feel safe. We fixed up these homes and sold them for a small profit. Garry eventually earned his contractors license which has enabled him to earn money during the summer when he is off from school.
  
  
• We always sold our homes ourselves and I so enjoyed it that I decided to make that my profession when my youngest finished high school. I took the courses, studied, and wa-la, got a job. This has taken some of the pressure off my husband.

There are a multitude of ways to make money. We have tried to be proactive and creative in our efforts to keep us afloat. It hasn't always worked out, that's for sure. We have had our share of set-backs and failures. I would like to think that we have learned something valuable from every set-back, but we have repeated the same mistake on occasion.

We have been without a place to live, lost our investment in a business venture, had to use public assistance at one time, had marital struggles and been humbled over and over again. It hasn't always been a fun ride, but I would say I've kept a joy throughout most of it because of my faith.

I have had several instances in the past week where I have had the opportunity to encourage clients who are close to losing it all. What I say to them is from my own experience. IF YOU DO LOSE IT ALL, it is not the end of your life. You can rebuild. There are many, many people in the same situation. You do not have to dwell on failure, but do what needs to be done (foreclosure, short sale, bankruptcy?) and then move on. I tell people in these situations to call your bank, a consumer credit counselor, talk to your tax professional, your lawyer and whoever else may be able to give you solid and valuable information on how to proceed. Burying your head in the sand doesn't work. The situaion will not go away or magically disappear.

It may sound trite to say that all my negative experiences have been for a reason, but it seems to be true. Sharing with a client from the perspective that I have been there and I'm still standing can be very encouraging and comforting. Agents, I would urge you to be transparent with your clients and listen to their concerns giving guidance when appropriate and an attentive ear as well.

Crescent City/Del Norte County Real Estate Market Report - Improving.

The Crescent City real estate market continues to improve as far as amount of sales, but prices continue to decline. Prices are down 29% over May sales last year.

I think we can thank declining prices, lower interest rates and tax incentives for maintaining sales.

54% of May residential sales were under $200,000 (62% of all 2009 residential sales were under $200,000), with 15% of total May sales being REO/Short Sale listings, although REO/Short sale listings only comprise 6% of active listings (REO listings are continually receiving multiple offers).

The absorption rate, the rate at which it would take to sell all inventory at the current sales rate of 13 homes a month, is 21 months, which is still abysmal. Inventory is higher than we would like to see for a market our size at 279 active residential listings.

The upper end home market, homes $400,000 and up, comprised 23% of sales in May, an increase over April; encouragement for that segment of the market.

I would like to do a plug for myself right here as 67% of homes over $400,000 sold in 2009 have been my listings. I am currently #1 in total sales in both number and volume and have more listings sold than any other agent for 2009. This is not by accident, but has been the result of hard work, a wonderful internet presence and loads of time spent marketing my listings, however, the most important ingredient is proper pricing. My clients who take my recommendations to heart regarding pricing have good success in getting their homes sold. My recommendations are based on statistics and closely monitoring my markets active and sold inventory.

It's a great time to be a buyer with low interest rates, REO inventory, which had been producing some real deals, and some good loan programs. They key here is to have your pre-approval done and letter in hand when you write an offer. Call me if you need the name of a local lender who will give you outstanding customer service.

If you find yourself overwhelmed with your house payment, please call your lender and ask for information on a loan modification. You do not have to pay for this service, so if you are told there is an upfront fee, run, don't walk, and contact your lender direct, where there will be no fee for this service if you qualify.

May 2009 market at a glance:

April 2009 Market at a glance if you would like to compare:

I am here to answer all your Crescent City / Del Norte County real estate questions. Thank you for stopping by.

Rose Peasley, the owner of RE/MAX Coastal Redwoods (my office), sold my Cherrywood listing last week. Her clients, Darryl and Lisa Promatico were kind enough to let us reprint an exerpt of an email to a family member.

"We go walking on the beach and she [their dog] meets other dogs there. It's nice to be on a beach that is walking distance and not crowded and everyone is nice and friendly and its clean with no diapers floating in the water!! LOL!! The DMV is small and not crowded at all. We went today to change our address. There are lots of long roads around here with hardly any traffic for you to practice your driving and not so scary and overwheming like driving around LA."

And there you have it. Why you should move to Del Norte County.

1. You can walk on the beach and your dog will meet other dogs.
2. The beach is not crowded.
3. The people are nice and friendly.
4. The water is clean with no diapers floating in it.
5. The DMV is small and not crowded at all.
6. No traffic (no smog either) and the roads are not scary or overwhelming. In fact we have less than 10 stop lights in the entire county.

If you purchased your home within the last 5 years, chances are good that you are paying more than you have to in property taxes.

Why? Because property values have fallen in California, in some areas, by more than 50%.

There is always someone trying to make a buck out there, so why should lowering property taxes be any different. You do not need to pay someone to assist you with this process, just like you DO NOT have to PAY SOMEONE to assist you with a loan modification.

It's a very easy process that I just completed. I received my letter today from the tax assessors office letting me know they have reassessed the value of my home, which resulted in lower taxes. (If you purchased your home at below market value, then you may not realize any savings by a reassessment.)

To start the process, it is helpful if you know what homes similar to yours are selling for in your neighborhood. If you don't know, call a local agent (in Del Norte County you can call me, I won't charge you), and ask if they would mind giving you some comparables to take to the tax assessor's office. I have already helped several clients and homeowners who called asking for help. When I called the assessors office I was armed with my homes current value based on several comps. The appraiser agreed with what I had to say because it was based on solid facts and not wishful thinking.

He added me to an ever growing list of homeowners who wanted reassessment, and within 4-6 weeks, I received my letter. I'm sure I speak for homeowner's everywhere when I say that any relief right now is helpful, so I was happy the hour or so I spent preparing for the assessor paid off.

IF YOU PURCHASED A HOME IN DEL NORTE COUNTY WITHIN THE LAST 5 YEARS, call me for comps. You may be a candidate for lower property taxes. Only your tax assessor knows for sure.

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, announced today at an address to several thousand REALTORS that the Federal Housing Administration is going to allow first time home buyers to use their $8000 federal tax credit as a down payment for the purchase of their home (Woo hoo).

Secretary Donovan said that important changes, which the National Association of Realtors(R) has been calling for, will help consumers purchase a home. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment," Donovan said. According to Donovan, the FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

What constitutes a "first time home buyer" for FHA's purposes?

A first-time homebuyer is an individual who meets any one of the following criteria:

	An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers.
	A single parent who has only owned with a former spouse while married.
	An individual who is a displaced homemaker and has only owned with a spouse.
	An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
	An individual who has only owned a property that was not in compliance with State, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

If you meet one of these guidelines and thought you were out of the housing market because you lack a down payment, the Department of Housings new policy may get you in the game. Call me for a referral to a lender who is experienced with FHA financing.

There is also a $10,000 tax credit available for NEW HOME purchases in California. You do not have to meet first time home buyer criteria for this tax credit, but you do have to purchase a new home, which is a home that has never been lived in. Consult your tax professional for more information.