Joshua Haight

Get out of the house this Saturday and enjoy a lovely evening with art, make some new friends, maybe even enjoy some Vino! Perhaps you'll find that got-to-have piece of art for your new home, or the home you will be buying soon!

Date: 7/18/2009

Time: 6:30 PM - 9:00 PM

3rd Saturday Art Walk

Vernon Street and 225 Taylor Street

Downtown Roseville hosts the 3rd Saturday Art Walk every month.

Join the ever-growing number of people attending this event.

Check out the Roseville Arts Webpage for information on other local Artist events and more!

www.rosevillearts.org

Watch a video of a featured local artist on a channel 3 interview HERE!

If you have been pondering whether to become a Roseville home buyer this year or to gamble on just how far the housing prices may fall, keep in mind the tax incentive being offered to first time home buyers in 2009. Remember that first time home buyer means you haven't owned a home in the past 3 years, this doesn't have to be your actual first time purchasing a home. It does mean you have not been in any ownership of a property in 3 years though. This $8000 tax credit runs out on November 30th 2009, so hurry!

If you would like to read up on details, here are some great sources:

federalhousingtaxcredit

money.cnn.com

CNNMoney.com Video

I have been showing a lot of REO properties lately in Roseville CA, and have noticed a new problem crop up with pre-approval qualification. Nearly every REO that I encounter that is owned by one of the big Banks (i.e. B of A, Wells, Chase, etc) is requiring an approval by them specifically in order to review an offer. At first regard, this may not seem like much of an issue. But in the competitive market of purchasing REOs and short sales in California, and especially in my local areas of Roseville CA and Lincoln CA (which were hit hard by the market drop) and the greater Sacramento Valley, buyers are commonly having to make many offers until they enter escrow as houses are selling above asking price due to lowered values and decreased inventory. So each time a buyer is making an offer, and needing a pre-approval for a listing, they are having to get pre-approved by each bank, having their credit pulled repeatedly through the home search process. Subsequently buyers' FICOS are getting chipped at bit by bit until their credit standing and qualification to buy is in jeopardy.

It was most evident of late after showing a new client some REO properties in Roseville CA and moving forward to make an offer on a particular home. They are first time home buyers and tight on credit qualification. They currently have an approval from Chase and I am concerned that if we pull again that there might be a reduction in their FICO score, leaving them without the ability to purchase the home that they have interest in. As an agent I ask that all potential clients consult with a mortgage consultant so that they know how much they can afford, and that they can be approved. I would think that if the client has an approval letter from a national bank, and that they have close to the same credit guidelines as the bank in ownership, and the approval can be verified, that the owning bank should except it. I do agree that a mortgage broker approval does not hold the same weight as a direct lender approval as it can be written in a Microsoft Word program and really does not mean much. But what I am suggesting is that our national banks should care a little more about the buyers and borrowers and not demand their own approval for every offer, and instead use an approval of another major bank as a reference. It just seems to be another example of banks needing to get back down to earth and back with the people. Let's actually work together to get these houses sold, to stop foreclosures, and get everyone’s needs met.

Inventory is low, especially in and around Roseville, CA, and buyers are trying to take advantage of the 2009 tax incentives. There are 5 months left to get the $8000 for first time home buyers tax credit. If a short sale listing was going to go on the market today it would go past the remaining 5 months for the credit. I bring this up because there is the 90 day moratorium on foreclosures here in California, there are not many traditional sales on the market, especillay in the Sacramento Area, because most people owe more that their house is worth, so the best solution would be a short sale so that the banks don’t have to wait for the next wave of foreclosures. The new 125% loan to value refinance option is great, if you don’t live in California or have been paying on your current mortgage for 15 years, as the values have dropped on average 50-60%. I think that if the banks put as much time and effort into short sale transactions as they do the foreclosures then the markets will stabilize a lot sooner. As always the best option is for the current owner to stay in the home. But I know that in Lincoln and Roseville CA areas, as owners look around they find it less attractive to stay in their homes as it is worth less and the lender is not willing to reduce their principal balance. I talk to Roseville CA homeowners who are more willing to move and take the foreclosure on their credit, and buy a home in 2-3 years than to stay in their current home and take 10-15 years before they get the value back. I can understand that the banks don’t want to reduce their entire portfolio, but after a financial review of the client and a market analysis there might be a better solution than to foreclose on someone and as these foreclosures have a ripple effect, affecting more than just the housing market.