About El Dorado County, CA

HIDDEN MORTGAGE FEE TO INCREASE SOON!

When you go into one of the major banks to get a home, loan chances are good that they will sell your loan on the secondary market soon after loan origination. Odds are that you not write many payment checks to the originating bank. They take that cash and use it to originate more loans.

Fannie Mae and Freddie Mac, the two huge Government Sponsored Enterprises, purchase most of these loans and sell them to investors. The originating banks follow Fannie Mae and Freddie Mac loan guidelines to ensure that there will be no problem selling the loans.

When the loan originator quotes you an interest rate for your loan, that interest rate made up of three segments. The largest goes to the investors who buy the loan; a smaller portion goes to the loan servicer who maintains borrower contact, collects the monthly payments and handles loans in default; and the final portion is the guarantee fee. Fannie Mae and Freddie Mac charge a guarantee fee as a form of insurance against default for the loans that they acquire and resell to investors. The fee is also a primary source of revenue for Fannie and Freddy.

On April 1, 2012, that guarantee fee will increase 10 basis points, or one percent. The increase in the guarantee fee is to cover some of the costs or the two-month extension of the payroll tax reduction last December.

The increase in the guarantee fee will result in an increase in the interest rate that loan originators will charge after April 1.

There is one way to avoid paying this guarantee fee and the associated higher interest rate on loans originated in April and beyond. You can apply to a loan originator who does not sell their loans on the secondary market.

At the beginning of this post, we stated that most loans are sold on that secondary market. There is a smaller segment of loans are known as portfolio loans. They are loans that the originators keep and service themselves. Credit unions and community banks are usually portfolio lenders. Since they do not have to meet Fannie Mae and Freddie Mac guidelines, the lenders may be more flexible with their loan guidelines and are an excellent source for financing for borrowers.

To view the complete New Your Times article, select this link:

http://www.nytimes.com/2012/03/04/realestate/mortgages-a-hidden-fee-is-set-to-rise.html?_r=1&scp=1&sq=mortgages-a-hidden-fee-is-set-to%20rise&st=cse

If you have any questions about real estate financing call us at (916) 337-0658 or e-mail Mike@BuyYourVilla.com

Tahoma, California Homes for Sale, Market Trend Report for 2011

The Tahoma community is located approximately 9 miles south of downtown Tahoe City on the West Shore of Lake Tahoe, California.

The Tahoma area is one of the more developed neighborhoods on the West Shore and is located in two counties - El Dorado County and Placer County. It’s close proximity to Lake Tahoe recreational activities such as boating, hiking, biking (dirt and paved trails), tennis, golf, skiing, shopping, and restaurants makes this a great area for those that enjoy being outdoors, and getting away from it all.

This area has had some of the most affordable homes on the West Shore, and is a mix of smaller, older, Tahoe cabins, to larger, newer luxury mountain homes, with a limited number of lakefront properties. Despite the heavier snow fall that the West Shore area receives each year, this neighborhood is easily accessed all year-long and is a nice mix of full-time residents and second home owners.

Sold Single Family Homes in the Tahoma neighborhood West Shore, Lake Tahoe, California:

In the Tahoma area, mountain home and cabin prices are down - 12% for 2011 year, with the average median sales price at $351,000. Since 2006, Tahoma homes have dropped in value -47%. While home prices are down, sales for 2011 have already exceeded the number of single family homes and cabins sold each year since 2006. Take a look at the price trend in Tahoma.

Cash sale transactions for Tahoma homes has increased to 38%, indicating buyers are still finding good real estate values in the Tahoe area, and aren’t afraid to place their investment dollars here.

The current absorption rate for the Tahoma area is at 4.11 months. Anything below 5 months of inventory is considered a Sellers’ Market. This is a significant shift in the market and it is the first step to turning a community around from a declining market into a raising market.

Distress sales (bank foreclosures - real estate owned (REO’s) and short sales) accounted for 38%. That means more than 1 out of every 3 homes sold in 2011 in Tahoma was a distressed seller, which was a 9% increase over 2010.

There were 17 Active – available homes for sale in just the Tahoma, West Shore, Lake Tahoe, California area as of 03/10/2012. This is an inventory drop of -57% since November 2011, when there was 37 active available homes for sale. The homes currently available for sale range in price from $139,900 to $760,000.

Of the 17 homes offered for sale there are 2 REO listings, and 3 short sales, accounting for 29% of the market. There are 7 pending sales in the Tahoma area as of 03/10/2012, ranging in price from $175,000 to $3,995,000.

Tahoma, West Shore, Lake Tahoe, California, Real Estate Summary for Sold Single Family Homes:

*YTD period is 01/01/2011 – 12/31/2011. Data Source: Tahoe Sierra Multiple Listing Service.

Use caution when only a handful of sales are available in a neighborhood. The percent changes can be significant and numbers are easily moved in either direction.

For all of your Tahoe real estate needs - Laura Allen, Broker Associate, REALTOR®, CRS, ABR®, RSPS, ePRO, Previews Property Specialist, DRE# 01473598, 530.414.1260, www.TahoeLauraLuxuryHomes.com Laura@TahoeLaura.com, Coldwell Banker Residential Brokerage, Tahoe City, California.

Note: Year-to-date summaries are based on information from the Tahoe Sierra Board of Realtors (TSMLS). Due to TSMLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Laura Allen, or Coldwell Banker Residential Brokerage does not guarantee the data’s accuracy. Data maintained by the TMLS's may not reflect all real estate activity in the market. All information is deemed to be reliable, but is subject to change and/or correction without prior notice. Data Source – Tahoe Sierra Multiple Listing Service (TSMLS). If your property is currently listed for sale, or you have an active Buyer Representation Agreement, this is not intended as a solicitation.

Nagami Kumquat- Native to China but as you can see, they love living in El Dorado Hills as well! The fruit is eaten peel and all. It is a symbol of prosperity and good luck durning Chinese New Year. My mother-in-law makes marmalade with them but if you have any other good uses or recipies, do share!

BANK OWNED (FORECLOSURE/REO) HOME SALES DATA FOR EL DORADO HILLS, CA – FEBRUARY 2012

This is the latest monthly report of our more than four-year study of bank owned (foreclosure/REO) home sales in El Dorado Hills, CA. This report covers February 2012.

There were eight bank owned homes sold in El Dorado Hills in February, down one from the previous month.

The average days-on-market decreased from 65 in January to 42 in February. Only one of the homes had been on the market for over 100 days. In addition, 37.5% of the homes that sold had been on the market for two weeks or less, confirming that well priced homes in good condition sell quickly.

The eight bank owned homes that sold represent only 18% of ALL homes sold in El Dorado Hills this month. The lower inventory level of bank owned homes is the reason.

The available inventory of bank owned homes in El Dorado Hills dropped to a 1.6-month supply in February, down from a 2-month supply in January. The inventory level exceeded a two-month supply in only two months in 2011. The inventory for ALL homes available dropped to a 3.5-month supply in February, down from a 3.9-month supply the previous month. Pundits advise us that a 6-month supply is a neutral market, so we are still looking at a strong seller’s market for ALL homes in El Dorado Hills, both bank owned and non-bank owned.

The average cost-per-square-foot for Bank Owned homes was $ 124 in February, down two dollars from the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in February was $ 149, exactly that same as the previous month.

The overall sales price for bank owned homes was 98.6% of the final asking price and 94.2% of the original asking price. Only one buyer paid the full asking price or more in February for their bank owned home. That is a smaller number than normal.

When based on the cost-per-square-foot for ALL homes sold, bank owned homebuyers paid 17% less in February. That is a $ 25 pre-square-foot savings. When applied to a 2500 square foot home, that represents a savings of $ 62,500, a substantial sum.

If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

Black Sheep Casino, Bar & Grill will be home to a Hip-Hop Night Life this Saturday, March 10, 2012 in Cameron Park.

Local hip-hop group, the Good Ol’ Boyz, is hosting a concert to showcase talented hip-hop performers live. There will be many local names in this music genre in attendance. If you are into this type of music, stop on by.

The venue requires a photo ID; it is only open to those 21 and over.

The Black Sheep offers pool table, poker room, dancing, and much more.

The Black Sheep Casino, Bar, & Grill
3181 Cameron Park Dr., Cameron Park

Contact The Good Ol’ Boyz at gobentertainment@gmail.com or (530)391-7311.