About Del Norte County, CA

Crescent City/Del Norte County June 2009 closings are up, so far 24% over May 2009 and the month isn't over!

Since closings are generally 45 - 60 days, we can attribute the below 5% interest rates in April for this flurry of closings.

But what about the coming months? There are currently 33 listings pending or in contingency status, about the same as when I checked in April, so it looks as though closings will be up for awhile. Interest rates, although inching upward, are hovering around 6%, which is still very good and Crescent City/Del Norte list prices are still coming down. It is still a buyers market, however buyers can expect competition and mulitple offers on the below market priced REO's that are hitting the market with greater regularity.

There is talk that the $8000 first time home buyer federal tax credit may be extended past the November 30th deadline. That may keep this rally going past the busy summer season despite the inching up of interest rates. The $10,000 CA New Home Buyer tax credit is spurring on purchases of new home construction as well. That credit ends when the money the state has set aside runs out, so better check before your purchase and see if you will actually qualify and if funds are still available for the credit.

Crescent City/Del Norte County inventory is still high in comparison to the amount of homes that are selling, but the absorption rate is at a much healthier 12 months, versus the almost 23 months we have been experiencing. The absorption rate is how long it would take to sell all inventory at the current sale rate of 21 homes a month.

In order to have a home sell in this market it has to be competitively priced. Competing with REO's and extremely motivated sellers may give homeowners who do not really need to sell pause to wait until foreclosures decline and inventory shrinks a bit. Otherwise, you may be faced with a long Days on Market, a shop worn listing, and a frustrated real estate agent who wants very much to sell your home for you, but finds that despite their best efforts to price your home for the current market, you "Aren't in any real hurry," "Don't really need to sell at this time," or "Aren't going to give your home away." If this is your mind set, in my opinion it would be much better to wait until prices come back up to where your home is properly priced for the market.

Your home is only worth what a ready, willing and able buyer is going to pay for it at that moment in time. Ask your real estate agent to show you comps that can give you a price range that will get your home sold. If your home is listed and has been on the market for more than 60 days, you may want to ask your agent for a new market analysis, but be warned, you may not like what you hear; prices are still coming down in Crescent City/Del Norte County.

The Crescent City Farmers Market is back!

The Farmers Market offers locally-grown produce, specialty items and arts and crafts.

It will be open every Saturday from 9 am to 1 pm until October 31st at the Del Norte County Fairgrounds in the Northeastern corner of the parking lot (where Rumiano Cheese used to have a store).

Some of the local vendors:

• Ocean Air Farms of Fort Dick
• Mountain Home Farm of Orleans
• Village Baker of Ashland (fresh baked bread)
• Terri McCune-Oostra (home made pesto)
• The Dutch Gardener will be selling plants and vegetable starts
• Daves Bags
• Spicy Mamas (dried spices)
• Paul Caster (back massages)
• Vita Cucina will be doing cooking classes and tasting

All of the goods at the Farmers Market are guaranteed by the county Department of Agriculture as made or grown locally. To be a certified farmers market, vendors have to sell their own products.

Vendors may change each week, so keep that in mind if you find something you really like.

Ron Phillips, manager of the Farmers Market, is hoping to have live music each Saturday and add more food vendors.

No pets are allowed per California health regulation. For more information contact Ron Phillips at Rural Human Services at 464-7441.

Gasquet, California. Home to the Forks of the Smith River (edit/delete)

Gasquet, California, although small (pop. approx. 400), has some mighty attributes, chiefly, the Forks of the Smith River and Six Rivers National Forest.

• Middle Fork Ranch has cabins on the Smith River with two private swimming holes for snorkeling and swimming in summer, fishing for salmon and steelhead when in season.
• Patrick's Creek Lodge is a historical bed and breakfast on the shore of Patrick's Creek, another Salmon and Steelhead fishing spot.
• Six River's National Forest - Check out their web page for all this National Forest has to offer.
• Ward Field Airport - Twin engine planes and smaller.
• Kayaking information for the Smith River.
• Hunt for Big Foot
• Bear Basin Butte Botanical area - Hunt for wildflowers in season.

Gasquet has it's own elementary school, Mountain School that serves grades K-5th grade, post office and general store. The summer weather reaches into the 100's, with an occasional dusting of snow in the wintertime. Gasquet is approximately 20 miles from Crescent City up highway 199.

It has several neighborhoods and homes scattered up and down the Smith River on acreage.

Several clients have called this week to ask about the California foreclosure moratorium that went into effect June 15, 2009, and how it will affect them.

The bill is similar to legislation passed by the federal government in March.

Some of the highlights:

• Banks can get an exemption from the moratorium by showing that they have a loan modification plan in place. Several companies have already applied for the exemption; California Department of Corporations has 30 days to grant or refuse the request.
  
  
• Loan modification programs in place must have some combination of the following features:
  • Interest rate reduction for at least 5 years.
  • Extension of the amortization period for up to 40 years from the date the loan was issued.
  • Deferral of some portion of the principal amount.
  • Reduction of principal.
  • Compliance with a federally mandated loan modification program.
  • Other factors that the commissioner feels appropriate.

• The law affects owner-occupied homes where the first mortgage was recorded between January 1, 2003 and January 1, 2008
  
  
• The target rate set by the bill is for the borrower to have their mortgage payment be 38% of income.
  
  
• Lenders methods of choice for lowering the payments are lowering interest rate and/or extending the loan to a 40 year term.
  
  
• This bill has no effect on second (or higher) mortgages or on non owner-occupied homes, and is in effect through January 1, 2011.
  
  
• Loan modifications require that the homeowner can pay the modified mortgage, so not all homeowners will qualify for a loan modification. Some homeowners would be better off pursuing a short sale.

Now for the Loophole - banks only need to have a loan modification program in place - there is no requirement for them to actually be issuing loan modifications. Some critics of the bill say if banks are able to get exemptions, the "teeth" are taken out of the bill, however, many banks seem to be realizing it is to their advantage to grant a loan modification or short sale rather than take the home through the expensive foreclosure process. Hopefully, as more and more homeowner's stay in their homes with loan modifications in place, the process will gain in momentum and popularity with lending institutions.

I talked with a client today who says her lender, Citi Mortgage, granted her a loan modification, lowering her interest rate to 3.5% for five years and graduating it back up to the original 6.5% in 7-8 years. My client said this lowered her payment by $400 a month giving her a little bit of breathing room and the ability to keep her home.

• Read the full text of the bill, sponsored by Assemblyman Ted Lieu (D-Torrance), HERE.

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.