Sally Dunbar Fair Oaks Realtor (916) 535-0356

OK... so I'm guessing that being a fan of a marching band isn't on your list of things to do before you die. But honestly, why not? It's kind of fun.

My grey-haired attorney brother-in-law announced a few months ago that he had joined a marching band... one of the few volunteer community marching bands in the nation. I thought he was kidding. After all he was busy defending just causes, protecting the innocent, suing bad guys. But marching in a parade? Hmmmm....

He was a band geek, along with his brothers at San Juan High School in Citrus Heights, back in the dark ages. The Dunbar boys were the horn section... trumpet, trombone and baritone. I bet the girls swooned. They were all danged cute.

Guess the trombone thing just got in his blood.

Fast forward to '09. At band practice one day, Bill's little son Scott, was forlornly sitting on the sidelines, listening to his iPod while Daddy tromboned away. "Hey, son... can you keep a beat?" Wham... Scott was inducted into the marching band. He injures his ears plays the rhythmic cymbols.

So that's why I was running down Sunrise Blvd last Saturday, in my flip flops, purse bouncing, camera strap flying in the tailwind, sweating in the Sacramento sun. I was trying to get the right angle to my camera of the Citrus Heights Community Marching Band as they marched in the Red, White and Blue Parade, celebrating Citrus Height's 10th year as a city. I had to get Scott with his oversized cymbols, and Bill puff-cheeked with his trombone. OK, I didn't do so good with Bill, but Scott is the little guy with... well... the symbols.

The whole thing turned out pretty cool. They were awesome. In fact a gal came up to me after watching me take pictures, and asked who they were.... she loved them. Listen to what she said.... it's pretty short.

The parade was so fun. There were clowns, roller blade teams, trick bike riders, the Shriners on yellow midget go-carts, dance teams, the Pumpkin Patch people, cool classic cars.... lots of different community groups were represented. The crowd was fun and there were lots of shady places to spread out.

If you want to become a band groupie, or join the fun and toot your horn, check out their website. Or maybe I'll see you at one of their upcoming performances.....

Citrus Heights Red, White & Blue Parade
Saturday, June 27, 2009
9:00 a.m.

Roseville 4th of July Parade
Saturday, July 4, 2009

Birdcage Marketplace
Barnes & Noble
Saturday, July 11, 2009

Supervisor Susan Peters Concert in the Park
Pioneer Park, Foothill Farms
Saturday, September 12, 2009

Sunday Funday
Rusch Park
Sunday, September 27, 2009
12:00 p.m.

Roseville Christmas Parade
Saturday, November 21, 2009
10:00 a.m.

For additional information on joining CHCMB, call Kathy Cook at (916) 725-0198 or Linda Glover at (916) 725-5214.

"What the heck is she talking about", you say? FHA has a killer loan "add-on" where you can save money by borrowing money to upgrade your heat and air unit, windows, insulation and other energy efficient products. It's pretty cool... (or hot, if you get a new heater!)

"So stop with the mumbo jumbo and give me the details!" Ok, here's an example. You are buying a $200K bank repo using FHA financing, with a nearly dead heat and air unit (or missing!), ugly aluminum single pane windows that are drafty, a measly 2" of matted down insulation in the attic, and a rusted out water heater blowing orange water into your kitchen sink. But it's a good deal and you want it. Here's where the EEM loan (Energy Efficient Morgtage) does it's magic.

You plan to put down 3 1/2 % (that what FHA allows) and get a loan for $193,000. You can tack on up to 5%, or $10,000, to upgrade items that will save you more money in energy savings than they cost. Take the insulation, as an example. An energy audit rates the house for energy efficiency. The audit shows that adding 24" of insulation will save $20 a month in heat and air bills. The $1,000 is added to your loan, so you will now owe $194,000, which has added $6 a month to your payment. But it saves you $20 a month, resulting in a $14 savings. Brilliant, huh?

The energy audit (done during the early stages of your loan, hopefully) will suggest the most efficient upgrades, and you can pick what you want, up to the 5% figure, as long as the aggregate savings is more that the cost. So, let's say you want to put in pretty new dual pane windows, which don't have a very high energy savings, but look way cool and really upgrade the look of your home. If you also upgrade the insulation (which has a very high return), your aggregate savings may be enough to qualify you.

You do not need to qualify for the additional loan amount (because it is saving you money), and all the actual work must be done after you close escrow. (And, no you can't pocket the money and not do the work.... nice try!)

If you think you might want to buy a home with this type of extra help, call me and I'll explain the details. It is a really slick way to take advantage of our low prices, yet get cosmetic and energy efficient upgrades, without needing to come up with extra money. This one's a no-brainer!

flickr photos by Mattwitmer and Redteam

This Friday I'm doing a marathon showing tour in Crosswoods. Every time I enter that community, I get the willies...the good kind. I just love it.

What is it, you ask? Crosswoods is a condo complex that feels like a collection of little cottages in the woods. There are about 550 homes (don't quote me on that), that are neatly tucked away on various locations on a woodsy tree-lined greenbelt. Every home has some type of greenbelt view.

It's located in Citrus Heights, near Auburn and Van Maren, just behind the public Library and public tennis courts. There is a retirement home nearby, Crosswood Oaks, but it is not related.

It's the only condo development I know of that has this woodsy ambiance. A drive or stroll around Crosswoods Circle might treat you to wild turkeys, squirrels, chipmunks, a gazillion birds, wild flowers, majestic oaks, towering redwoods, and frequent walkers circling the well lit sidewalk along the circular drive. There are also many other walking paths, lit for your safety, that meander through the woods. Plus 3 swimming pools.

And the homes themselves? Cute as bugs in a rug. There are 2 story and one story homes. (Unfortunately, none of the 2 story homes have bedrooms downstairs, which is a frequent request. Sorry. But that's Crosswoods' only fault!) They range from 1100 s.f. to around 2000, with 2, 3, and 4 bedrooms.

I don't recall the original target audience for Crosswoods, but while there are no age restrictions, the average age tends to be a little higher than most neighborhoods. My belief is that when Crosswoods was built, the young families who bought really like it. Many have refused to move out. Thirty and forty years later, their kids have grown and they have "matured". As their friends drop by for lunch, a card game, or a quick visit, they are impressed with the natural setting, and make a plan to move there. In my 20 years of open houses there, I have found many people who keep showing up on Sundays, week after week... waiting for their time to move to Crosswoods.

I have been selling homes in Crosswoods since 1989. As I drive down the streets today, my mind is in constant chatter "I sold that one... and that one.. and I helped Mary move from that one... and I found that one for Betty one stormy night... and we had to remove that home's dead tree during escrow... and that one has the wall removed... and that one has an expanded kitchen... and that one can watch the full moon rise over the oak trees from it's deck..." The chatter is constant.

While it is not the only area I sell in, it always feels like I'm coming home when I have a client who's a good fit. Friday will be one of those times.

If you want to check out their Homeowner's Association, it's open every weekday, but check the hours. You can read the minutes of their meetings at their website, as well, just to see what type of issues they deal with.

Then call me, and we'll make a plan for you to move there, as well. Or here's a link to all the condos available for sale in Citrus Heights. (I'm not clever enough to limit your search to only Crosswoods, but you will find them listed here!)

First, I'm sorry you are in this predicament. None of us dreamed of this when we plunked down our original down payment on our shiny new home. But this is life... there are no guarantees.

If you have already tried a loan modification, or if a modification just won't help you due to your circumstances, you might consider a short sale, rather than allowing your home to be foreclosed upon. It will be up to your lender, or lenders, and they will require you to have a hardship that prevents you from paying your debt, but if you have a hardship, a short sale can offer some advantages over a full-on foreclosure.

First of all, after a short sale, you may be able to rebuy more quickly ... like in 2 years. With a foreclosure it will take from 5 to 7 years. I know that seems like forever, but time will pass.

Second, your credit score will be tanked less with a short sale, in the neighborhood of a 50 - 100 point decline, in addition to the dings from you late payments. A foreclosure will drop your FICO score in the 200 - 300 point range, for at least 3 years. This varies tremendously, depending on circumstances, and on how your lender reports it, so remember this is a generalization.

Your short sale may or may not show on your credit history, while a foreclosure is a public record for 10 years or more.

A short sale is particularly attractive if your job entails a security clearance. A short sale usually will not raise a red flag for a security clearance, while a foreclosure has a much higher likelihood of causing the revokation of your clearance. Talk about a double whammy - lose your house and your job (if your job is dependent on your clearance). You don't want that.

The killer can be a deficiency judgement that can threateningly follow you for 4 years or more from your first missed payment. You have more negotiating room with a short sale, and are able to negotiate for "full settlement" of your debt, although the banks are getting devious on this one. Wtih a foreclosure, there is no negotiation. The bank retains the right to file a deficiency judgement for four years after your first missed payment. (A deficiency judgement means you still owe the money, even though you don't own the house anymore. With a judgement, they can attach your wages, your future car... anything you try to buy. Only payment of the judgement or bankruptcy eliminates the judgement.)

Bottom line... this is tricky stuff. It's way out of our comfort zone, and it truly is a can of worms. If you are upside down, or are having trouble making your payments due to a change in your ability to pay, get help. My suggestion?... find out then weigh your options. I first send my clients to an attorney who specializes in short sale/ foreclosure options, to assess their exposure and their risk of legal and tax consequences. With his guidance, we develop a plan that works for them, then either proceed with a loan modification, short sale, or foreclosure. It shouldn't cost more than a few hundred bucks for the consultation, but can help you avoid a very costly mistake, and is the only way to get proper legal advise... realtors are not attonrneys or accountants, and should not be giving you legal or tax advise.

Again, I'm sorry for your pain. This is tough. But not doing anything may be tougher on you in the long run. Find out your options, and take action to minimize the impact on your future. Don't be one of the 70% of foreclosed homes who never even tried to do a short sale.

And remember, this too shall pass.

flickr photo by Bethany L King

Down and dirty, here's the scoop on real estate in the Sacramento Area.

Over the past year (from May of 2008 to date) the number of homes on the market has dropped by 54%. That's shocking. Yet the number of homes buyers has remained pretty constant, month by month. Hmmm... decreased supply with demand staying the same? Sounds like basic economics would tell you prices should have gone up.

But no. Prices went down (based on price per square foot) 20% during that period. Hmmm. sounds good if you are a buyer.

And bank owned properties?... the REO's? What about them? The REO inventory has dropped 73% during that time. Why...? Because of the moratorium on the foreclosure process that has been in place since December of '08. That has caused our bank-owned inventory to plummet. They're tough to find now.

Interestingly, our average price per square foot (ppsf) has actually increased since May '09. It's up from $113/ft to $118/ft throughout the Sacramento County, with all price ranges considered.

Does this mean we are coming out of the dark days, and returning to the good old days of increased value? Well, consider this. We have reached a record number of homes in default. There are over 8,000 homes in the County with Notices of Default (where the owner has missed at least 3 payments and their lender has filed the NOD), and there are over 5,000 homes with Trustee's Sales already scheduled. (That means they will become REO's). The State-controlled lenders still have their hands tied on new foreclosures due to the moratorium, but the Federally controlled lending institutions (most of the big guys) are starting to bring their foreclosure homes to market. It's not happening very fast, but they are starting to trickle out.

The talk of every realtor I know is When are the REO's coming? It feels like we are standing on the tracks smiling pleasantly, since prices are going up, and we are seeing multiple offers on the existing inventory. But don't look now... there is a smoking freight train rumbling up behind you carrying a cargo of REO's. They have to be coming. What else will the banks do with all that steam that's building up? Distressed homeowners will not being relieved until prices come up and restore their equity. In the mean time, loan modifications are helping some... short sales are are working for more and more. But ultimately, the REO's are coming.

If you are a seller, sell now! This is as close as it comes to a seller's market. Sell before the REO inventory is your competition.

If you are a buyer, then what? Buy now... because of interest rates. If prices drop 10%, that will effect your monthly payment the same as the interest rates going up by 1%. Shocking but true. Add to that the $8,000 first time Home Buyer Tax Credit, and it's a no brainer. Buy, buy, buy. Don't wait for prices to drop, because the interest rate may eat up your savings.

To search for homes anywhere in the Sacramento or Fair Oaks area, go here. You'll see photos and tons of information.