Barry Ripp ~ East Bay Area Real Estate

Sales of homes for less than the amount of their outstanding mortgage debt have tripled since 2008, particularly in California, according to a report released last Tuesday.

Known as “short sales”, the increasingly common transactions for financially troubled homeowners are projected to balloon to 400,000 in 2010.  The number of transactions had exploded to more than 160,000 in 2009 from roughly 96,000 the year before. More than a quarter of the transactions occur in California, with another quarter split between Arizona, Texas and Florida

In an economy in which jobs are scarce and a quarter of homeowners owe more on their property than it’s worth, short sales are appealing to investors, banks and owners as a cheaper way out than foreclosure.

And with fluctuating home prices, lenders can be reluctant to approve short sales. The transactions can be a hassle to execute, especially when multiple loans on a home mean a slew of creditors are included in negotiations.

But on the bright side; Short sales could actually end up boosting the job market. Unemployed homeowners who can escape underwater mortgages have an easier time moving around, expanding their job search.

As I finish this posting, there are currently 604 houses for sale in the Fremont tri-city area. Of which 126 are short sales, that’s 20%.  Those numbers decrease sharply for the higher priced homes. Of the homes prices over $500,000 only 12% are short sales.

I just thought I would post this beautiful 4 bedroom home in Newark, CA.  Its been all remodeled through out and looks great. It’s nearly 2000 square feet.

You’ll love the all new custom kitchen with gas stove, Bosch dishwasher, “Corian” counters and Maple cabinets.

New “Milgard” windows, new carpet, new paint inside & out, new roof & gutters and new garage door & opener too. The large master suite with new bathroom and 2 large closets.

Cherrywood floors highlight the family room & kitchen.

Inside washer/dryer included.

Enjoy the front patio and the large backyard also.  I think is could be the perfect home for you and your family.

For a Photo Slide Show, click: http://www.flyinside.com/tour.php?id=42787

Please contact me if you have any questions about this home or others.

 ~ Barry

                                                         To comply with the stricter lending guidelines of Fannie Mae and Freddie Mac, and to avoid accusations that the loans sold to Fannie and Freddie are based on inflated appraisals, some real estate professionals have reported lenders lowering home values on appraisals submitted to them. However, effective Sept. 1, Fannie Mae is prohibiting the purchase of loans from lenders who change appraisers’ numbers.

Generally, lenders order a low-cost electronic valuation—based on publicly available statistical data—to review the accuracy of the information submitted by the appraiser. If there is a discrepancy between the electronic valuation and the appraiser’s report, the lender’s underwriters may reduce the appraisal figure.

 ~ Barry Ripp

From:  Calif. Assoc. of Realtors & LA Times

Summer’s warm weather is great, but it has some problems. Bugs, Mosquitos, etc. Just when you want to open a window, something flies in.  Spraying a bunch of chemicals around your home may not be a good idea if you have children or pets…and it’s not the “greenest” way to go.

Here are some more natural ways to get rid of pests.

To get rid of ants, try sealing of their entry point with cayenne pepper, lemon juice, garlic or mint leaves. (try one at a time to see which works best for you.)

For mosquitos, try planting marigolds. They give off a fragrance that the bugs don’t like. Lemongrass is another good idea, it contains citronella…which works well.  Also lookout for standing water, that’s where they’ll thrive.

Enjoy your summer!

On  last Monday, April 5, banks nationwide began offering the Home Affordable Foreclosure Alternatives Program (HAFA). This new federal program will try to help homeowners avoid foreclosure by offering incentives to lenders that offer a short sale or deed-in-lieu of foreclosure.

Earlier this week, the National Association of Realtors (NAR) reported some lenders and loan services have been slow to implement the program or are unaware of its availability.

NAR has prepared resources to help REALTORS® answer questions about HAFA. Their new short sale Web page includes HAFA forms, breaking news and Fannie Mae and Freddie Mac real estate commission policies.

Call your Realtor today for more info, or contact me and I will be happy to forward you some information.

~ Barry Ripp emailto: barry@barryripp.com

www.barryripp.com 510-794-7690

A new national survey gauging attitudes toward housing finds that 65% of Americans still prefer owning a home, despite the challenging economic environment and the housing downturn. The Fannie Mae National Housing Survey, conducted between December 2009 and January 2010, polled homeowners and renters to assess their confidence in homeownership as an investment, the current state of their household finances, views on the U.S. housing finance system, and overall confidence in the economy.

The survey revealed that homeowners and renters alike are taking a more cautious approach to homeownership. 23% renters polled said they will buy a home later than once planned. In addition, Americans with traditional, fixed-rate mortgages with predictable payments are significantly more satisfied than those with other types of mortgages. Respondents cited non-financial reasons such as safety (43 percent) and quality of local schools (33 percent) as driving factors in wanting to own a home, ahead of financial considerations.

60 percent of consumers believe that buying a home today is harder than it was for their parents, and 68 percent think it will be even more difficult for their children. 88 percent also believe that walking away from an underwater mortgage is not acceptable.

 ~ Barry Ripp    www.barryripp.com

The Federal Reserve announced it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time. “Information … suggests that economic activity continues to strengthen and that the labor market is stabilizing,” the Fed said in a prepared statement.

“Household spending is expanding at a moderate rate, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly,” the Fed said.  “However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls. 

“While bank lending continues to shrink, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels” the Fed said.

The Fed also said it would end its program of purchasing mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help keep home loan rates low. That program will conclude at the end of this month when the Fed’s mortgage bond holdings reach the $1.25-trillion limit it set last year.

Affordable home prices, tax credits for home buyers, historically low interest rates, and a large number of distressed properties prompted many first-time home buyers to enter the market in 2009, according to C.A.R.’s 2009-2010 “State of the California Housing Market” report released today.

 California’s median home price hit bottom in February 2009 at $245,170.  Since then, the median home price has increased steadily in month-to-month comparisons, but remained below 2008 levels throughout 2009.  The annual median price is projected to increase to $280,000 in 2010 from $271,000 in 2009.

 Homes priced $500,000 or less dominated the sales mix throughout 2008 and early 2009, but peaked at 85 percent in January 2009.  Meanwhile, the market share of homes sold for more than $500,000 increased from 15 percent in January 2009 to 25 percent in July 2009, holding steady around that figure for the remainder of last year.

 So if you are thinking of buying, what’s stopping you? Contact me and I can show you your next step, why wait any longer?

Governor Proposes $10K home buyer Tax Credit: During his final “state of the State” speech on Wednesday Jan. 6, Governor Schwarzenegger proposed a state income tax credit of $10,000 for first-time home buyers. The proposal would expand the tax credit for those purchasing newly constructed homes to include the purchase of existing homes by first-time home buyers.

For more information, contact me.

 ~  Barry