About El Dorado County, CA

El Dorado Hills, CA REO (BANK OWNED) SALES DATA FOR OCTOBER 2009

This is a continuation of my monthly report on Bank Owned home sales for El Dorado Hills, CA. This report covers REO homes sold in October of 2009, the latest in my study of over two years.

There were 22 REO homes sold in October, up from 14 in September. The average days-on-market jumped to 43, up from the record low of eleven days in September. There were three homes that sold in October that had been on the market for 249, 127 and 108 days respectively, which had an effect on this statistic. Of the REO homes sold, 31.9% were on the market for two weeks or less.

The 22 homes sold represent 40% of all homes sold in El Dorado Hills.

Bank owned and Short Sales represent a majority of the home sales in today's market.

The cost per square foot of REO homes in October decreased to $ 149, down from $ 158 in September. The cost per square foot of all homes sold in October dropped twelve dollars, to $ 156.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 4.4% savings for REO buyers.

The overall sales price for REO homes was 101.9% of the final asking price. Only 36.4% of the REO homes that sold did so for less than the asking price.

At this writing there are 321 homes on the market in El Dorado hills, representing a 5.8 month inventory. We have edged into a seller's market.

The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all homes sold: in October, seven dollars per square foot. That is a $ 17,500 savings on a 2500 square foot home, still a tidy sum.

THe data follows:

HOW TO AVOID FORECLOSURE

Fannie Mae Deed-for-Lease Progra

Fannie Mae has come out with another option to help distressed home owners avoid foreclosure. Any program that will help is worth looking at. The program guidelines are very specific and not everyone will qualify.

It is a variation of the deed-in-lieu process, through which the homeowner/borrower gives the lien holder the deed to the property in lieu of foreclosure. The lien holder becomes the owner of the property and the distressed homeowner who meets the guidelines remains in the home as a tenant.

• The borrower must have sufficient income to qualify to pay the market rent for the property. The cap is 31% of the borrower(s) gross income. So a family with a $ 2000 per month gross income can only qualify for a $ 620 monthly rent payment. The borrower must submit proof of income.
• The borrower must continue to occupy the property. They can not initiate the program, move out and sublet to another party.
• The property must be kept in good condition.
• This program was announced on November 5, 2009, and not many loan servicers have embraced it at this writing. The guidelines will not allow many to qualify, but is an option for those who do.

For more information go to:

http://www.fanniemae.com/newsreleases/2009/4844.jhtml

If you have further questions feel free to contact Mike West:

(916) 337-0658

http://www.ForeclosureStopper.ORG

OVER 55? CALIFORNIA PROPERTY TAX RELIEF

Since its passage, Proposition 13 prohibits property tax increases until property ownership is changed.

If either spouse is over age 55 (when the old home is sold), PROP 60 allows replacement of a primary residence with a new home of equal or lesser value (but see below) within the same county and transfer of the Prop 13 assessed valuation from the old home to the new property. This is allowed once in your lifetime, and a spouse who has done it before 'taints' both spouses.

PROP 90 allows counties to elect to accept transfers of Prop 13 values for moves from other counties when a primary residence is replaced with a less expensive (but see below) home. If you are over 55 and move into a county which accepts Prop 90, you may take your old, lower Prop 13 value, regardless of from which county you move.

Using Prop 90, you can sell your $400,000 San Francisco home [assessed value $80,000] and move to a new $300,000 home in San Mateo; the new San Mateo assessed value will be $80,000!

7 COUNTIES WHICH ACCEPT PROP 90 (Current as of 6/1/2008)

Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura. [Contra Costa, Inyo, Kern, Riverside, Modoc, Monterey, and Marin have dropped out of the Prop 90 program.]

Props 60 and 90 apply if you "trade down" (i.e. the new home costs less than the sales price of the old home).

> If you buy New Home 1^st; then sell the Old Home, you must go down in price.

> If you sell the Old Home1st; then buy the New Home:

• In 1^st 365 days after the sale of Old Home, you may go up 5% in the purchase price of New Home.

• If you buy New Home more than 1 year from the sale of Old Home, but less than 2 years, you may go up 10%.

• 

Some buyers can pay the commission outside of escrow to lower to sales price. Example: I sold for $100,000 and then want to buy next week for $120,000. The seller will owe a commission of $7,200. The seller will owe $2,800 of other expenses

I sold 1st so I must buy for no more than $105,000. If I pay the seller's expenses of $10,000, the price is down to $110,000. Hmm. If I buy the stove, refrigerator, and lawn furniture for $6,000, it looks like I qualify. WARNING: I do not suggest this is a valid idea.

Our Board of Supervisors will take this to vote in January of 2010-likely to be in affect immediately thereafter, or by February, as our sources have been told. This will change the outlook in our County in a very positive way.When real estate prices began to fall and property owners began their requests for reassessments-of course to lower values-this of course resulted in lower tax revenues to the County. How does EDC put a stop to the continued reduction of RE values/revenue? Prop 90 is just the answer. For any and all information on Real Estate in Cameron Park, and in El Dorado County proper-contact your resident Realtor and real estate Counselor, Wendi-Mae Davis Toll free 866-333-6333 or wendimae@wendimae.com and you may want to check out her personal website at HTTP://www.wendimae.com also check out the community website at HTTP://www.mycameronpark.com Let's talk!

OVER 55? CALIFORNIA PROPERTY TAX RELIEF

Since its passage, Proposition 13 prohibits property tax increases until property ownership is changed.

If either spouse is over age 55 (when the old home is sold), PROP 60 allows replacement of a primary residence with a new home of equal or lesser value (but see below) within the same county and transfer of the Prop 13 assessed valuation from the old home to the new property. This is allowed once in your lifetime, and a spouse who has done it before 'taints' both spouses.

PROP 90 allows counties to elect to accept transfers of Prop 13 values for moves from other counties when a primary residence is replaced with a less expensive (but see below) home. If you are over 55 and move into a county which accepts Prop 90, you may take your old, lower Prop 13 value, regardless of from which county you move.

Using Prop 90, you can sell your $400,000 San Francisco home [assessed value $80,000] and move to a new $300,000 home in San Mateo; the new San Mateo assessed value will be $80,000!

7 COUNTIES WHICH ACCEPT PROP 90 (Current as of 6/1/2008)

Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura. [Contra Costa, Inyo, Kern, Riverside, Modoc, Monterey, and Marin have dropped out of the Prop 90 program.]

Props 60 and 90 apply if you "trade down" (i.e. the new home costs less than the sales price of the old home).

> If you buy New Home 1^st; then sell the Old Home, you must go down in price.

> If you sell the Old Home1st; then buy the New Home:

• In 1^st 365 days after the sale of Old Home, you may go up 5% in the purchase price of New Home.

• If you buy New Home more than 1 year from the sale of Old Home, but less than 2 years, you may go up 10%.

• 

Some buyers can pay the commission outside of escrow to lower to sales price. Example: I sold for $100,000 and then want to buy next week for $120,000. The seller will owe a commission of $7,200. The seller will owe $2,800 of other expenses

I sold 1st so I must buy for no more than $105,000. If I pay the seller's expenses of $10,000, the price is down to $110,000. Hmm. If I buy the stove, refrigerator, and lawn furniture for $6,000, it looks like I qualify. WARNING: I do not suggest this is a valid idea.

Our Board of Supervisors will take this to vote in January of 2010-likely to be in affect immediately thereafter, or by February, as our sources have been told. This will change the outlook in our County in a very positive way.When real estate prices began to fall and property owners began their requests for reassessments-of course to lower values-this of course resulted in lower tax revenues to the County. How does EDC put a stop to the continued reduction of RE values/revenue? Prop 90 is just the answer. For any and all information on Real Estate in El Dorado Hills, and in El Dorado County proper-contact your resident Realtor and real estate Counselor, Wendi-Mae Davis Toll free 866-333-6333 or wendimae@wendimae.com and you may want to check out her personal website at HTTP://www.wendimae.com Let's talk!

Where to go for an excellent dining experience in El Dorado Hills? Maybe with some entertainment included? The Bistro 33 is one place to choose. One resource for choosing a Dining experience of your choice, is the Monthly "Style" Magazine which can be found in many store fronts, or at almost any Merchant in the City. The restaurant of the month, in their November issue, is the Thai Ginger and Satay Bar-currently in Folsom, and coming to El Dorado Hills soon-even in these tough economic times-quality restaurants continue to spring up all over town. If you are looking for Thai-this place is it-my favorite is the Spicy Beef Pad Kee Mao-WOW!!!

For any and all information you could possibly want, check in with your neighborhood specialist-Wendi-Mae Davis, Broker Associate with Connect Realty, Real estate counselor HTTP://www.wendimae.com email wendimae@wendimae.com or call her anytime Toll Free 866-333-6333