Loren Ransier

REMAX Sacramento

As a full time agent with REMAX Sacramento since 1992 I can tell you that the last 24 months have been the most difficult of my career. I can also tell you that the Sacramento housing economy is poised for recovery as a result of several factors:

• In the quarter just passed the US has just had it's most solid GDP showing in over 2 years. We grew at a respectable 3.5% in the three months, July through September, 2009. While the growth came as a result of Government tax incentives such as the "cash for clunker" program and the $8000 tax credit for "First Time Home Buyer's ", the growth was welcome news to our recession weary economy.
• The US has historically low interest rates which helped our housing market in 2009.
• Housing inventories are down as a result of 2009 record sell-off of foreclosures. Some area's of the REMAX Sacramento service area are experiencing a modest increase in equity. Folsom is an example.
• I, as an agent for REMAX Sacramento, have benefited from the Government's $8000 tax credit for "First Time Buyer's" in 2009. While political wrangling continues about this popular measure it is expected that bipartisan support assures it's survival into 2010 and beyond.
• FHA has replaced discredited conventional lenders for many transactions in 2009. FHA raised its loan limits to $580,000 in 2009. This allowed many transactions to occur for REMAX Sacramento which would not have occurred otherwise. Industry insiders tell me that they expect the higher FHA limits to extend into 2010 and beyond.
• REMAX Sacramento has improved its coping skills in dealing with the current crisis. Loan modifications are an increasingly popular tactic for distressed homeowners. Consumers in the past have been taken advantage of by some modification companies demanding upfront fees. The practice of advance fees by law practices and modification companies have been at the heart of the loan modification corruption. Those taking the fees often take consumer's money with no modification even attempted, much less successfully completed. Consumers have also been taken advantage of by their banks who have often functioned only from self interest.
• An example of improved coping skills is the innovative solution pioneered by REMAX Sacramento's strategic alliance with Nfinit Solutions, a Nehemiah Company. For details on how to take advantage of Nfinit Solutions comprehensive educational approach for distressed homeowners call me. I want to personally help you understand your options and how REMAX Sacramento can help you stay in your home.
• Another crisis abatement coping skill which I as a REMAX Sacramento agent have been trained and experienced with is short sales. A short sale is when more is owed on a home than its current value and the seller's lender will agree to take less than is owed on the home. Like a loan modification this tactic is designed for those who have no equity in their home and are experiencing hardship from job loss, adjustable rate mortgages, or are drowning in debt.
• As a REMAX Sacramento agent I am interested in seeing these crisis abatement coping mechanisms succeed to spare communities more foreclosures which destroy home values.
• An advantages for individuals using a short sale is that a with a successful short sale individuals can buy again in as little as 24 months. In addition, a successful short sale or loan modification can save a security clearance that would be lost as result of a foreclosure.

As a REMAX Sacramento agent I can also assist those with equity in getting the highest possible price for their home and sell it quickly. Please call me so I can help you sell your home or buy your next home.

Loren Ransier DRE 01132890
lransier@remax.net
916 439-3588 e Fax 916 357 9940
Website www.sacramento.me
RE/MAX Gold

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Market Update: REMAX Gold Real Estate. End of the distressed Market?

Articles have appeared recently in the Sacramento Bee reporting news which could indicate a lessening of influence of distressed properties in the Sacramento CA real estate market. These articles argue that a large influx of foreclosed properties in the Sacramento region is not likely to happen anytime soon because of:

1. The massive foreclosure sell-offs to investors. Many of these homes have become rentals and others that were bought off the courthouse steps have been fixed up and flipped to buyers seeking tax credits and low interest rates. The sell-off has shrunk the inventory of foreclosures and has stabilized the region's market prices.
2. The curtailment of new home production is a second factor sited. What builder can afford to develop when regulatory and permit costs will eat up potential profits from the sale of new homes?
3. Buyers who have been enticed by low prices, low interest rates, and tax incentives have jumped at the bargains. Just as the "Cash for Clunkers" program moved cars out of showrooms and onto the streets, the $8000 dollar first-time buyer tax credit program has moved home buyers to buy now. Because of the looming December 1 2009 expiration of the tax credit, September 2009 home sales rose an unexpected 9% nationwide.

The Sacramento Association of Realtors also put out a statement which I have summarized and paraphrased: Despite the fact that 40% of all Sacramento CA region home sales in the past month were either short sales or foreclosures and despite the fact that the Sacramento CA region home sales volume is down trending month over month compared to last year's sales, the Sacramento Bee found hope in the fact that home values are no longer sliding and that the market inventory has stabilized at a much lower level than that of previous years. The present median price is $176,000.

Foreclosure Radar, a California service, also argues that there really is no overhang of unsold foreclosures and that fears of hidden overhanging inventory have been hyped. They are less clear about the effect of people remaining in their homes after they cease making payments for months and years. Political and business factors have curtailed the desire of banks to move as quickly to Notice of Default and foreclosure as they once did.

The other shoe about to drop:

While all of these facts and figures attempt to find a silver lining to today's market they miss some basic facts which will influence the Sacramento market by mid-year 2010:

1. Interest rates are expected to go up in the next year which will put downward pressure on consumption. Too much cash has been printed and circulated and as it becomes clear that a recovery is picking up steam, inflation looms. Inflation drives interest rates up because the Federal Reserve Bank changes it bias. High unemployment creates downward pressure on consumption. The term for this is stagflation. Stagflation has happened before in the 1970's. Stagflation creates the worst of all worlds because interest rates go up and that kills housing demand.
2. More adjustable rate mortgages, greater in number than the total number of sub prime loans which have created our current crisis, are in the pipeline and ready to adjust in the next 3 years. Based on past experience it seems likely that there will be massive loan defaults.
3. While the first batch of loans that defaulted were with less credit-worthy people, the next batch will hit better neighborhoods like Folsom and Eldorado Hills. This will depress the top of the market. These higher-end loans have names like pick-a-payment, Alt-A, Smart loans and were made to more affluent buyers with higher credit scores. Many of these buyers are now less affluent because of the turn down in the business cycle.
4. Political pressure to stop foreclosures has been intense. State and Federal foreclosure moratoriums have stabilized Sacramento area housing inventories. The question is, with unemployment reaching above 12% in the Sacramento region and furloughs and partial employment at record highs will these government efforts prove to be a band aid rather than a cure?
5. Many of the same banks that have had exposure in the residential mortgage crisis also have exposure in the exploding commercial real estate crisis. The effects of failed small businesses show up in half empty business parks and shopping malls. Malls and offices that are not leased decay in value. This leads to massive foreclosures and sell-offs as banks with these uninsured assets seek cover from the deflationary storm.
6. Most residential real estate has mortgage insurance to partially cover a bank's loss. This is not the case with commercial mortgages - they rely on large down payments and on business success to fill buildings.

So what can an individual do in this environment to help his situation?

1. Recognize that now may be a really good time to buy a home because of cheap money (ie) low interest rates and tax incentives. It is expected that Congress will expand the $8000 tax credit for first-time buyers for another 18 months.
2. Listing and selling your home in this brief moment may prove to be your last best opportunity for several years to come to get your home sold fro the best possible price. We are in a respite in the foreclosure crisis with most adjustable rate mortgages not beginning to adjust until well into 2010. People who have defaulted recently did do so as a result of unemployment or other traditional economic factors.

• RE/MAX Gold Real Estate has formed a strategic alliance with Nfinit solutions, a Nehemiah Company to bring relief to distress home sellers. These solutions include:
• Reinstatement
• Repayment Plan
• Loan Modification which takes no upfront fees and is SB94 compliant
• Forebearance
• Short Sale - which is less damaging to a security clearance than a foreclosure
• Deed in Liew of Foreclosure
• Cash for Keys

• Loren Ransier DRE 01132890
• lransier@remax.net
• (Phone) 916.439.3588
• (Fax) 916.357.9940
• Website www.sacramento.me
• RE/MAX Gold DRE # 00863521

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SB 94, Consumer protection legislation, was signed into law this week in Sacramento CA. The purpose of this legislation was to abolish the practice of attorneys and modification companies taking upfront fees from consumers. Those writing the bill felt that consumers should be able to work with their bank or rely on advice from non-profits to get their banks to modify their loans.

The heart of the argument for these protections was the fact that rarely was anything being delivered for the fees paid. In California less than 20% of all modifications are successfully completed. This is because banks often fail to recognize the reality of the consumer's situation. In these instances the modification becomes simply a postponement of the foreclosure, not a solution to the consumer's real problems.

The public, not being trained in the ways of banks, are unable determine whether what their bank is offering will be an actual solution to their problem or simply a band aid that they will later regret. Consumers need expert help and non-profits or basic education may not be enough help. This is where RE/MAX Gold Real Estate can provide answers.

Nfinit solutions a Nehemiah Company and Remax Gold Real Estate have formed alliance to help consumers deal with the expected rising foreclosure tide in 2010, 2011, and 2012. Home Retention Advantage by Nfinit solutions a Nehemiah Company is an SB 94 compliant program helping RE/MAX Gold Real Estate customers keep their homes.

All of those employed is this process are DRE Licensed specialist who work directly with homeowners to design a retention plan that fits their individual needs and sitation rather than focus on one solution.

Education from Nfinit solutions a Nehemiah Company and communication with a RE/MAX Gold Real Estate agent are the conerstones of our program. Whether or not you decide to participate in our Home Rention Advantage program you can benefit from Nfinit solutions a Nehemiah Company Education Course and Learning Center resources available at the Nfinit Website.

Your first step as a consumer is to call me, Loren Ransier DRE 01132890, lransier@remax.net 916 439-3588.

REMAX Gold Real Estate.

REMAX Gold Real Estate homes in sacramento and Nfinit, a Nehemiah Company, have formed a strategic alliance to expand Home Retention for Californians. A homeowner has several choices in deciding how to handle the retention or sale of the property.

REMAX Gold Real Estate and Nfinit can work with home owners to achieve Home Retention by:

1. Educating homeowners and providing resources.
2. Offering a full spectrum of workout solutions.
3. Offering Service with no upfront fees.
4. Assuring that the consumer works with DRE licensed and experienced professionals in the real estate industry.
5. Dedicated RE/MAX Gold agents and Nfinite staff follow-up with consumers.
6. Nfinit staff with expertise in lender negotiations.

The basic choices for Real Estate retention include:

1. Reinstatement, All past payment and past due amounts are brought current with the lender. This option is normally done by the borrower on his own Real Estate.
2. Repayment plan, a repayment plan for real estate brings all payments current over time. This may be as much as spreading the past due balance over a year or more.
3. Loan Modification, A loan modification may be worked out by the owner of the real estate or a real estate attorney. Modification companies also exist most of whom charge upfront fees and are often prosecuted for fraud because they take the consumer's money without getting a desirable result. Non-profit free services are also an option. The big question about the non-profits is their results, not their good intentions. The RE/MAX Gold/ Nfinite strategy is to provide expertise at a low cost with no upfront fees and expertise needed to get a result.
4. Forbearance, is an option which many lenders will sometimes use interchangeably with loan modification. A forbearance will attempt to stick the amount over due onto the end of the loan without changing or rewriting the terms of a mortgage. A true loan modification may include a change in interest rate or in the length of mortgage term or even principal reduction.

As the agent and Nfinit consult with the homeowner it may become clear that managed surrender of the Real Estate is the only workable option. Each option for managed surrender may have different tax consequence and legal ramifications. It is important that consumers consult with a Real Estate attorney or a CPA so they are prepared for the results of foreclosure or managed surrender.

Managed Real Estate surrender techniques include:

1. Short Sale - this is done with an agent who lists the home for sale. The reason this is called a short sale is because the bank is willing to take less than the amount that is owed on the property.

Advantages of successfully short selling Real Estate will include:

1. Less damage to your credit since the short sale will normally show on the credit report as having been satisfied.
2. The ability to buy a home in 2 years with a Fannie Mae loan rather than the 5 to 7 year wait after a foreclosure.
3. One can dispose of investment property as well as owner occupied property.
4. Less of a challenge for those with a security clearance which will be jeopardized by a foreclosure.
5. Employment impact lessened with a short sale as current and future employers see a sale, not a foreclosure.
6. Deficiency judgments may be eliminated or lowered in a short sale negotiation.

Other Managed surrender techniques include:

1. Deed in Lieu
2. Cash for keys.

5 things that homeowners must do to maintain control in process:

1. Stay in the Real Estate and do not move out.
2. Keep making your payments if possible.
3. Get all promises in writing.
4. Understand everything you sign.
5. Communicate with your lender.

To enroll in the Nfinit program or find out more about your options contact myself or another agent trained in the use of Home Retention and short sales and we can begin the route to your recovery with Real Estate.

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