San Jacinto, California Real Estate Foreclosures, Short Sale and Standard Sales Activity Jan. 2010 San Jacinto, CA consists of many neighborhoods from the zip codes 92582 & 92583, like Country Lake, Downtown San Jacinto, Durango, Meridian Estates, Park Hill, Rancho San Jacinto, Sagecrest, the Soboba Indian Reservation, Soboba Springs and Torino. This is a monthly Real Estate report of REO Bank-Owned, Short Sales and Standard Sales Active Listings, Closed Sales and Pending Sales from January 2010 in San Jacinto, California. Active Foreclosure Listings for San Jacinto, CA: Active Short Sale Listings for San Jacinto, CA: Active Standard Sale Listings for San Jacinto, CA: Closed Foreclosure Sales for San Jacinto, CA: Closed Short Sales for San Jacinto, CA: Closed Standard Sales for San Jacinto, CA: Pending (in Escrow) Foreclosures for San Jacinto, CA: Pending (in Escrow) Short Sales for San Jacinto, CA: Pending (in Escrow) Standard Sales for San Jacinto, CA: 7 13 27 19 4 12 18 13 12 These numbers can give us a general idea of what type of listings and sales are currently in the San Jacinto, California area from 1/1/10 to 1/31/10. Keep in mind these numbers do not reflect properties currently under the status of Backup Offer, Contingent to Show, Expired, Canceled, Hold Do Not Show or Withdrawn. All data and numbers regarding Foreclosures, Short Sales and Standard Sales per MLS. For more information or if you'd like to have listings sent directly to your email FOR FREE call or email us now:

San Jacinto, California Real Estate REO Bank-Owned, Short Sales and Standard Sales Activity

San Jacinto, CA consists of many neighborhoods from the zip codes 92582 & 92583, like Country Lake, Downtown San Jacinto, Durango, Meridian Estates, Park Hill, Rancho San Jacinto, Sagecrest, the Soboba Indian Reservation, Soboba Springs and Torino. This is a monthly Real Estate report of REO Bank-Owned, Short Sales and Standard Sales Active Listings, Closed Sales and Pending Sales from December 2009 to January 2010 in San Jacinto, California.

Active REO Bank-Owned Listings for San Jacinto, CA: 56

Active Short Sale Listings for San Jacinto, CA: 123

Active Standard Sale Listings for San Jacinto, CA: 24

Closed REO Bank-Owned Sales for San Jacinto, CA: 70

Closed Short Sales for San Jacinto, CA: 22

Closed Standard Sales for San Jacinto, CA: 5

Pending REO Bank-Owned Sales for San Jacinto, CA: 102

Pending Short Sales for San Jacinto, CA: 74

Pending Standard Sales for San Jacinto, CA: 11

These numbers can give us a general idea of what type of listings and sales are currently in the San Jacinto, California area from 12/15/09 to 1/15/10. Keep in mind these numbers do not reflect properties currently under the status of Backup Offer, Contingent to Show, Expired, Canceled, Hold Do Not Show or Withdrawn.

For more information or if you have any questions please feel free to call or email us using our contact info below.

With the recent change in HUD policy allowing investors to purchase homes and flip them right away and not forcing them to hold title before they can be sold with FHA financing will definitely help the flipper but drive the first time home buyer away from the distressed homes for sale in the Hemet -San Jacinto CA valley.

The investors have the cash and the first time buyers have the credit. all of the good deals are bought quickly with cash buyers and the FHA buyers are cut out of the market - especially if there is a low appraisal on the property. So, what we are going to start seeing even more of is real estate investors taking advantage of the market and buying, rehabbing and selling turn-key home to first time home buyers.

BUYER BEWARE

When a flipper takes possession of real estate, unlike the banks, the new seller has to complete a full set of disclosures, according to California Real Estate law. Now, eager to unload, look for sellers getting caught up in what they may consider a "little white lie".

It has never been uncommon for a seller to down-play the property taxes (maybe not include the 'special assessments') or utility bills, forget about pests (like the ants that invade the home interior every summer) or downplay a flooding problem or noise at certain times of day.

It is not uncommon for a real estate deal to fall apart because the buyer discovers that the new home is not all it is represented to be.

Some of the common 'Little White Lies" that I have heard include the following:

"The house is 2,500 sq ft." Well if you count the garage it may be, but when the appraiser goes through and measures the home, room by room, it is possible the 400 sq ft in the garage needs to be eliminated from those numbers - making for a significant difference in value.

or how about...

We don't have pests. Unless you have a termite inspection you may never know if the home is infested or not. It is always recommend that you, as a home buyer have the home inspected by a pest control company as well as a building inspector . . . even if you think you know all about homes yourself. Get a fresh set of eyes on the home.

or...

"This is a quiet neighborhood". It may be when you find the home on a Tuesday afternoon and then on the Thursday morning you inspect or the Monday afternoon when you do your final walk-through. But what about that neighbor who lives on the block behind you and only 1 house down and they party late into the night every Friday night with loud music and lots of kids with cars cruising the neighborhood? Do you think that could be annoying?

my favorite. . .

"There's going to be a ..." Fill in the blank. Truth is if it isn't built don't count on it. Many builder had great expectations when developing communities during the boom period but had the rug pulled out from them totally unprepared. I know of one Hemet master planned community that collects $175 a month in HOA for a pool and clubhouse that has never been occupied - it's tied up in the builders bankruptcy and the HOA cannot take possession - yet they collect money every month as if it is right there.

It is very important that when buying a home from anyone really, but flippers have started to emerge and not all of them will be as credible as we would like. I am not saying there is anything wrong with recently rehabbed homes as they will be having a significant share in the marketplace very soon...just be careful and don't let the eye candy fool you and lure you into a false sense of security.

D O Y O U R D U E D I L L I G E N C E

California Voters started a Tax Revolt in 1978 with the passage of both Prop 13 and Prop 8. Now the glory has always gone to Prop 13 as that is the voter mandated constitutional amendment that directed the County Assessors to roll back assessed value and to limit the way property taxes could be assessed for the future.

Prop 13 is an incredible piece of legislation and has saved Californians billions nd billions of dollars, if not more, since it became law in 1978. However, without it's cousin Prop 13 would be a very evil law right now, considering the rapid decline in value experienced across the state over the past 3 years or so.

AN EXAMPLE

You purchased a Hemet - San Jacinto, CA home in 2005 for $500,000. The assessment is for the same amount - $500,000 - creating a 'base value', as far as all future assessments are concerned. Now, under Prop 13, the max tax is 1% for the State and anything above this has to be approved by the voters - you know, schools, police, bonds - this sort of thing. For sake of discussion, lets stick with the 1% tax rate. Therefore, it is easy to budget $5,000 a year to pay your property taxes.

With Prop 13, you know that the assessed value can only increase by nor more than 2% per year. So, in 2006, year 2, your assessed value will automatically increase to $510,000 and your tax bill will now be %5,100. In 2007 your home may actually be worth $750,000 by this point but your assessed value will only increase by 2% of the base value which is now $520,200 and your tax bill is only $5,202.

In 2008, we start to see some decline in value, in the overall marketplace, but you feel good because you still have some equity - you just are not sure how much, since a bank owned home, just like yours sold around the corner for $450,000. However, your taxes are now $5,306 based on the 2% increase in assessed value bringing your base to $530,604.

By 2009, you know you have no equity and know you are upside down on your mortgage since model matches have sold for $300,000 in your neighborhood - yet your property taxes and assessed value continue to rise. Your tax bill increases to $5,412 based on the new automatic Prop 13 value of $541,216 and by this year, your assessed value is up to $552,040 with a tax bill of $5,520 and the likelihood of your home being worth as little as $200,000 or less before the year is up are very real and very frightening.

PROP 8 TO THE RESCUE

Prop 8 is also a California voter mandated constitutional amendment that allows for a "temporary reduction in the assessed value" whenever the real estate suffers from a "decline in value", for any number of different reasons. A "decline in value" refers to when the current market value of your property is less than the amount assessed by county. The actual section of the Revenue and Taxation Code can be found at this link.

In a nutshell, Prop 8 allows property owners to file an application with their County Assessor to reduce the taxable (assessed) value of their real estate.

By filing the claim, using my example, a homeowner should be able tor have the assessed value reduced to $450,000 which would result in a refund (assuming the taxes have been paid) in the amount of $806. Assuming this value carried over to the next year (it always does not) then a reduction for 2009 should reduce the assessed value to the $300,000 and a $1,412 refund (again, assuming the taxes were paid prior to the adjustment).

ALL REAL ESTATE IS ELIGIBLE

The good news for California Real Estate Owners is that the law covers all kinds of real estate and is not limited to residential or owner occupied homes. Both Prop 8 and Prop 13 cover residential real estate as well as vacant land and all sorts of commercial real estate from strip malls to huge regional malls. From single occupant office buildings to mega office complexes and high-risers. The laws also cover industrial from a small tire shop to the biggest factories in the state. If it is privately held real estate that pays property taxes in the State of California, then the laws work for the ownership of that property.

January 1st is the key date in assessing the value. Changes to the Assessed Value are based on the Market Value of the real estate on January 1st of that year.

Each county has it's own process and it's own filing periods for submitting claims. What all counties have in common though is that if you do not feel as if you are getting a fair shake with the Assessor than you have the RIGHT to a hearing before the Assessors Appeals Board, who generally have the final word on the discussion.



THE SPIDER AND THE FLY

What bothers me the most about the whole process is that that County Assessors keep telling home and property owners that they (the County Assessor) will go ahead and lower the assessed value with out the need for the property owner to file a claim. To me, it sounds reminds me of the child's poem, ..."Step into my parlor, said the spider to the fly"

Not only are the County Assessors doing all they can to stop homeowners from filing their own claims, themselves - as they are entitled to, but they are discouraging private enterprise to offer expertise and assistance where it is so righteously needed. They have gone so far as to pass legislation that makes it near impossible for private companies to solicit their services to homeowners with the passage of AB 992 that severely handicaps the marketing efforts of all residential property tax consulting firms because of a few bad apples.

Can you imagine what would happen if the IRS made it impossible for H&R Block and other tax companies from advertising their tax services - just because there are some bad eggs in that industry? For me, this is just one more example of our Nanny Government going above and beyond the call of duty to protect us form ourselves.

In California both Prop 8 and Prop 13 are the law of the land. It should be noted that each county interrupts and implements this law in a number of different ways, so if you want to learn more be sure to check with your individual County Assessor's office. It should also be noted that I am neither an attorney or CPA and that if you need legal or tax advice please solicit it from a professional of your own choice.

Governor Schwarzenegger delivered his last State of the State address to a joint session of the California State Legislature, Wednesday January 7, 2010, and took the time to propose some pretty controversial ideas for stabilizing the economy in the Golden State.

Of particular interest to the Real Estate Industry is his proposal to allocate another $200,000,000 tax dollars to subsidize homebuyers with a tax credit that would provide up to $3,333 off of state taxes for each of the next three years.

This program is very similar to the $100,000,000 that was given away for buyers of 10,600 new homes between March and June, 2009 - when the money ran out. Unlike last years state tax credit that limited buyers to the purchase of new homes, this year the Governor wants the program expanded to include existing inventory of homes for sale across the state.

According to the Secretary of Labor and Workforce Development, Victoria Bradshaw, "This is about helping eliminate extra housing to get construction back on tap."

What I don't understand is how that hundred million dollars helped stimulate the economy by building more new houses that can be purchased for less than half the cost of building them? I have personally sold many newer bank owned (REO) homes in the last year for less that $50 a square foot - and I'm talking good sized homes - 2,500 sq ft - 3,000 and even 4,000 sq ft homes for $50 a foot. So how does a $10,000 tax credit for new homes help anyone but the builder?

Administration officials said qualifying conditions of the current proposal would be similar to the credit given last year. There are no income limits which make every homebuyer eligible who plans on living in the home.

NOT EVERYONE AGREES

My average sale in 2009 for all the homes I sold in the Hemet - San Jacinto Valley, CA was just over $114,000. How does giving away ten-thousand tax dollars make sense for a $114,000 home that is already receiving a $8,000 Federal Tax Credit. In the City of San Jacinto, CA, there is an additional 6% grant from the HAMP funds the city received. So, the first time buyer of an average San Jacinto home could then receive $24,840 in tax payer assistance that does not have to be paid back. This is a home that was sold for over $300,000 just 3 years earlier and is costing the buyer a net of under $90,000!

There is obviously some conflicting opinions as to what has caused the current economic disaster this country is experiencing . . . just as there are conflicting opinions on what we need to do to fix the problem.

Taxpayer subsidized tax credits do help those who want to buy a home. Yet many renters feel as if they are doing the subsidizing and that the current $8,000 federal tax credit for first time homebuyers and the $6,500 available for repeat-buyers is more than sufficient to stimulate the housing market. Especially when the low interest rates are added to the equation.

I suppose it is the same argument that was raised in November when the Federal Tax Credit was signed into law by President Obama. Those opposed would rather see the money spent elsewhere and not subsidize other peoples consumption with tax money.

California is having it's own economic meltdown with State employees only working 4 days a week these days. I am sure that $200 Million could make an impact in one of the departments that serves all of California - say our prisons, higher education or heck, even the Department of Real Estate (DRE). What about the DMV? Think they may need some money to operate a little smoother? Without even pretending to understand the State Budget, I'm just convinced that there are places the money could be used besides the private sector - even though it is earmarked for the industry that I earn my living in.

(Personally, I would rather a few violent criminals stay behind bars than get released early because we don't have the money to keep them for their full sentence - but heck that's just me. What do you think?)

There is a faction that believes that the money should be used to round up and deport illegal aliens who tax our system and way of life with the consumption of benefits from healthcare, overcrowding our schools and taking money from our welfare programs - while taking away jobs that should be held by taxpayers and citizens.

Of course there are the conspiracy theorists who are convinced that as soon as the proposal becomes law that home prices will become inflated as buyers will be scrambling to open escrow while the federal tax credit is still available allowing the prospective homebuyer to ‘double dip' into the tax credits and earn $18,000.

Some believe that the tax credit should be applied exclusively to bank owned homes to remove the vacancies from our neighborhoods and not encourage builders to add inventory to a very unstable market. Although there is no doubt that building homes creates jobs the theory expressed by many is that the vacancies do more harm and bring property values down even lower in established neighborhoods where real families are losing equity with every vacant home in the neighborhood.

An argument taken up by many is to use the tax credit for small business for creating jobs - even minimum wage jobs are putting people to work. I believe that it takes a business mind to fix the problems we have today and not a politicians looking to serve constituents and lobbyists at the same time. Business could take the opportunity to expand their business and thereby expanding the tax base putting money back into the economy in the form of wages and taxes paid by the business.

NOT POPULAR

Well, being in the heart of the industry that stands to benefit the most from the infusion of cash should make me happy and you would thing that I would be promoting the heck out of the program and urging everyone to contact their state legislatures to hurry up and pass the new law. But I'm not. I guess I won't be very popular with other agents and leaders in my industry. Sure, once it becomes law, I'll use it to sell homes in my neighborhood - but what choice do I have.

My personal belief is that there are enough homes and enough buyers. The money is better spent with other programs that have a real need in protecting the citizens of California. If there is some way in making the lending process easier - this I believe will do the most to stimulate housing. Getting someone qualified and through the system and out of escrow is the challenge. If we can do our job and sell more houses - then the economy will be better off.