Steven Keefe

The following chart shows all single family home sales in the Crestline Market reported to Rim Association of Realtors for the calendar year 2008 as of January 4, 2009.

The following chart shows all single family home sales reported to Rim Association of Realtors for the calendar year 2008 as of January 4, 2009

The only property that is going to sell in this economy is one that is priced correctly. The successful agents challenge is preparing the seller for the competition.

Recent real estate figures, stack pretty tall against speedy sales and big profits in many markets including the So Cal mountain communities. Inventory is up significantly and transactions are fewer leading to significant competition for those wanting to sell.

Lending guidelines have tightened, but the buyers that are out there are in most cases qualified. Most are putting down larger down payments and taking advantage of the historically low rates. Sellers need to position their property to appeal to these buyers.

First thing to determine is do you really want to sell? If you are testing the waters, now is not the time. Don't bother putting it out there unless you are serious about selling.

Second, have your agent prepare a detailed price summary. Evauate honestly the competition and price your property below not at market value to move it.

Third, don't chase the market down. Small price reductions don't do any good in this market. If you are going to reduce it, Reduce it significantly to make an impact and get the price below the market.

Fourth, Stage the property. Make sure it looks its best. Put away as much as you can. Your nick nacks don't sell... in fact they may not sell your home.

Fifth, You need the right agent and company. Don't risk it in this market. You need the best. Call me if you want a recommendation. I have the best team of agents on the mountain. No one sells more than Coldwell Banker Sky Ridge Realty.

Earlier this month the Federal government unveiled additional mortgage assistance for homeowners at risk of foreclosure. The "Hope for Homeowners" program will refinance mortgages for some borrowers who are having difficulty making their mortgage payments. , but can afford a new loan that will be insured by HUD's FHA.

This program began October 1, 2008 and will go through September 30, 2011. The program is available only to owner occupants and will offer 30 year fixed rate financing only.

The following eligibility requirements will apply:

• The home must be a primary residence, and the homeowner can not own any other residential property, such as second homes or rentals.
• The existing mortgage must have been originated on or before January 1, 2008 and the homeowner must have made at least 6 payments.
• The homeowner must not be able to pay their existing mortgage without assistance.
• As of March 2008 the total monthly mortgage payments due were more than 31 percent of the homeowners monthly gross income.
• The homeowner must certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide false information to obtain their existing mortgage(s).

The following provisions also apply:

• The loan amount may not exceed a maximum of $550,440.
• The new mortgage will be no more than 90% of the new appraised value including any financed upfront mortgage insurance premium.
• The upfront mortgage insurance premium is 3 percent and the annual mortgage insurance premium is 1.5%.
• The holders of the existing liens must waive all pre-payment penalties and late payment fees.
• The existing 1st Mortgage holder must accept the proceeds of the new loan as full settlement for the outstanding indebtedness.
• Existing subordinate lenders must release their outstanding mortgage liens.
• Closing costs may be:
  1. Financed into the new loan provided the value of the new loan does not exceed 90% of the newly appraised value of the home.
  2. Paid from the borrower.
  3. Paid by the servicing lender or third party.
  4. Paid by the originating lender from premium pricing.
• The homeowner must agree to share with FHA both the equity created at the beginning of the new mortgage and any future appreciation in the value of the home.
• The borrower can not take out a second mortgage for the first 5 years of the loan, except under certain circumstances for emergency repairs.

There may be a certain number of homeowners in our market that may benefit from this program, but it is my feeling that the requirements are stringent and may not be realistic. For further information on this program or if you would like to discuss eligibility, please contact me at my office 909.336.2131 or via email at steve@cbskyridge.com