Alameda sales week of November 27 thru Dec 2

Legend BT=Building type BR=Bedroom count Bth=Bathroom count

DOM=Days on market LP=List Price SP=Sold Price

New Listing 1 Cornelius SQ. in Bayport

Alameda sales week of November 22 thru 26

Legend BT=Building type BR=Bedroom count Bth=Bathroom count
DOM=Days on market LP=List Price SP=Sold Price

Have you ever heard of FICO 8

The Fair Isaac company has come up with a new credit scoring model. This comes as we have seen a record rise in defaults on mortgages by people with good credit. Not only are borrowers who previously were rated outstanding credit risks far more likely to default today, but many homeowners are defying long-standing credit industry assumptions by going delinquent on their first mortgage payments while continuing to pay their credit card balances and second mortgages on time. Strategic defaults, or walkaways, by high-score borrowers also have been an unexpected development. This new model changes how they evaluate consumers' risks of default. Whats interesting about his for those who are looking for a home is how the credit scoring model changes depending on what type of credit you are applying for. A mortgage credit score is different than a credit card credit score.
Read more. CLICK HERE

Alameda Sales for week of November 15th thru 19th

Legend BT=Building type BR=Bedroom count Bth=Bathroom count

DOM=Days on market LP=List Price SP=Sold Price 

The 5 myths of Foreclosures

Read a great article on foreclosure myths at Trulia.com

The following is an excerpt from the first paragraph of the article.


"Four years into the housing crisis, myths about foreclosure still litter the minds of even the smartest of real estate consumers. When it comes to matters as high stakes as your home, confusion can cost you thousands - or even your home. Whether you’re a buyer looking at foreclosures, a homeowner struggling to keep your home or a seller concerned making sure your home can compete with the foreclosed homes on your block, these foreclosure myths are prime for the busting, with no further ado."


Author: Tara-Nichole Nelson

READ MORE CLICK HERE

Update on Foreclosures in Alameda

Foreclosures have been in the news a lot lately. Maybe you heard about the robo signings.
They can still be a good deal if you know what to look for and have some energy and cash for fixing up.

We currently have 14 foreclosures in Alameda 3 condos 2 Townhomes and 9 single Family homes.

This one at 2110 Encinal recently came back on the market. It is a huge house with some great details inside and a nice little garden in the back. It is definitely a fixer but has great potential.

Want to find out more visit my real estate website from the link on the right hand side of this blog.

Repair or credit?

"My wife and are planning to buy a home. We know to hire a home inspector to find any major defects in the home. If such defects are found, do you suggest asking for the item to be fixed or for a dollar credit?"

I usually recommend to all my clients, be they buying or selling, to do a credit.

It's cleaner and simpler. There's no delay waiting for the repair to be completed. And no room for disagreement about whether the repair was done right. Believe me, I've had that happen.

Two caveats:

1. Be sure the estimate is realistic and from someone who will perform the work for you.

2. Because lenders won't allow credits for repairs, the credit must be for "closing costs." So be sure you have sufficient closing costs AND that you don't exceed the maximum credit your lender will allow.

See my video on credits.

Tips for Buyers. Credits.

Halloween display that caught my eye.

Saw this Halloween display on Santa Clara Ave. as I was driving to the office.
I love how people go all out for there decorations. I will post more photos that catch my eye.
For those who are looking to get competitive check out the Halloween Haunt your house contest.
http://www.alamedahauntyourhouse.com/

Wonderful couple has a new house.

Recently closed this listing for my clients Zack & Connie who are first time homebuyers.
Lovely 2 bedroom 2 bathroom home in the Laurel District of Oakland.
Completely remodeled home with a beautiful kitchen, hardwood floors.
I know they are thrilled and wish them the best.

Travel & Leisure rate Alameda cool place to visit

Travel & Leisure magazine rate Alameda cool suburb to visit. Not crazy about the suburb part, I like to think of it as small town. I have friends in Ashland and near New Hope also on the list.
But check it out CLICK HERE

Are the lowest rates behind us.

An article from Mortgage News Daily. Filled with lots of mortgage speak but the message is the same. Mortgage rates may be heading up.

Mortgage rates didn't have a chance today.

Borrowing costs started moving higher early in the session and never looked back.

As the day progressed, agency MBS prices fell further and lenders were forced to reprice for the worse.

Par 30-year fixed 4.25% quotes are still on the board, but closing costs are at least 15bps higher (+0.15% of loan amount).

That's really a best case scenario though. If you're a passenger on the float boat, your closing costs probably increased by about 0.25% today. 4.375% is almost the new par.

But 4.25% is definitely still do-able for very well-qualified borrowers (no loan level price adjustments). Now 4.125%, that might be tough. That quote is costing perfect borrowers about 2pts.

The culprit of this event? Well. We can't factor out a religious holiday: Rosh Hashanah. Many decision makers were out of office today, if not to celebrate their faith, at least to look after their kids who were enjoying a day off (public schools).

Combine that with an already apathetic investing bias plus a poor turnout at a Treasury bond offering...and the market got a little sensitive. Yes MBS had a very bad day today. But we've had bad days before. Yes loan pricing got dinged today. But we've seen loan pricing get dinged before.

We expected rates to move higher this week. If you're floating, that means you've been doing so under the assumption that loan pricing was going to worsen this week. You knew to expect a period of volatility as the market searched directional leadership in a quiet environment. Rates could very well trend higher in the month ahead.

It was a really boring summer for return hungry investors, there is potential in the marketplace for stocks to rally on, even if the rally is built from glass. View it as professional traders attempting to spark some excitement. Profit Churning. If that makes you feel queasy, it's not too late to lock up at a really really aggressive rate, especially if you're closing in September.

But we never thought 3.5 MBS coupons would trade with enough liquidity to allow lenders to offer rates below 4.25%, but they did, albeit briefly. The economic and political environments are still clouded with uncertainty and muddled with assumptions based on assumptions. It's hard to believe stocks could run too high without being spooked by a weak read on the labor market or another leg lower in the housing market.

Does this mean the lowest mortgage rates are behind us?

We might have seen the lowest rates we're ever gonna see, if that is the case, then those rates are already behind us so it doesn't mattter. But I think rate watchers with waiting time should sit back for now and see how this latest shift in benchmark yields plays out. If push comes to shove and we need to pull the emergency chute, we will alert. In the meantime, let's see how the market reacts to higher yields. Play the Range Until the Range Plays You.

Whirlwind tour of 1137 Pacific Ave.

Free e-waste recycling event at Harbor Bay sat 8/14 9-1

Nothing warms my heart more than to get rid of stuff. And electronic stuff especially. I have a bin full of stuff I recently dropped off at a fundraiser that was happening at Lincoln Middle School I was so happy to get rid of those a bunch of those wall warts, some cell phones, old gizmos and alkaline batteries. There is another free e-waste recycling event happening at the Harbor Bay Community Parking Lot this saturday 8/14 9am-1pm

Video tour of 1528 Bay St.

THE BIG NEWS! Interest rates!!!

Just sold 2125 Spaulding in Berkeley

Recently closed this wonderfull remodeled home in Central Berkeley. 2125 Spaulding
2125Spaulding.com

Alameda Sand Castle Contest

One of the great parts of living in Alameda is that we live near the beach. And where there is beach there is sand! And where there is sand they make sand castles and sand sculptures. I finally got down to see this annual festival of playing in the sand. June 19th people crowded the beach to view these unique and creative ideas. Here are a couple of my favorites.

New Listing 1528 Bay St. Alameda

This spacious central Alameda home has been completeley refurbished. The large rooms flow out to the newly built back deck and the large deep back yard. The kitchen has granite counter tops with maple cabinets, stainless steel appliances, travertine limestone tile flooring and recessed lighting. The bathrooms have been remodeled with granite counter tops, new tile, cabinets and fixtures. It is freshly painted inside and out with refinished hardwood floors; new exterior stucco and sod with a sprinkler system in the front yard; new doors and lighting in all rooms including a new ceiling fan in the living room and a new chandelier in dining room. Upstairs there are 3 large bedrooms and an additional room with water hookups for a laundry room. The expansive back yard allow’s ample space for gardening and has great potential for your own landscaping. Electrical service recently upgraded. Just around the corner from Pagano’s, Vine’s coffee shop, resturants and shopping; close to parks; easy access to transportation.
See more photos at http://www.1528bay.com

PMI easier to obtain

PMI is Private Mortgage Insurance. It is usually necessary to get PMI when you less than 20% down.
For those with less than 20% down FHA was usually the only way to go. FHA generally requires a down payment of at least 3.5%. Now it seems other lenders are easing restrictions and offering lower down payments as well.

WITH private mortgage insurance considerably tougher to get last year than at any point in decades, many borrowers flocked to loans insured by the Federal Housing Administration.

They had little choice. Lenders typically will not offer mortgages to borrowers with down payments below 20 percent, unless the borrowers get insurance to indemnify the lender in the event of a default. And the federal government was the only entity willing to back many of these borrowers during the housing market slump.

Now private mortgage insurance, or P.M.I., could be making a comeback. Some mortgage insurance companies like Genworth Financial and Radian Guaranty have been easing underwriting standards — sometimes eliminating geographic restrictions, in the case of Genworth, for instance, and offering insurance to some borrowers with down payments of as little as 5 percent.

READ THE WHOLE ARTICLE HERE

Sewer Lateral Testing coming to other cities

Sewer laterals are not a very sexy subject. Alameda, Albany and Berkeley have had there own sewer lateral testing ordinance in place for awhile. Now sewer lateral testing is coming to Emeryville, Oakland and Piedmont. Below is a link to the EBMUD site that explains the new private sewer lateral test.
Exciting I know!
Sewer lateral program link

Short Sales Get Easier

A short sale is where the lender(s) agree to receive less than the full loan balance and allow a sale. Short sales have a well-deserved bad rep for being painfully slow and complex. But three developments are changing things dramatically:

1. Banks are slowly getting organized and staffing up.

2. World Savings, Wachovia, and Wells Fargo have dramatically sped up and simplified the process for many of their loans. In some cases they can give an approval in a matter of days or even minutes.

3. HAFA: This is the new federal "Homes Affordable Foreclosure Alternatives" plan. It's controversial due to taxpayer-funded incentives (aka "bribes") to banks and homeowners to do what's already in their best interests. But it may help by organizing, standardizing, and speeding up the process.

Are you or someone you know having trouble paying a mortgage or owe too much to sell?
Please give me a call (510) 847-2628 I can go over the options for you and give you accurate information.

Some tidbits on FICO scores

If you are in the market to buy a home one ver important component of your interest rate is your FICO score.

How are FICO scores determined.

Answer:
The formula itself is complicated and the FICO company (Fair Isaac Corp) keeps it secret. But here are the basic components:

• A.   35%   Past Delinquencies
  Your payment history
• B.   30%   Debt Ratio
  Your revolving account balances divided by their limits, as a percentage
• C.   15%   Average Age of File
  Length of your account history
• D.   10%   Mix of Credit
  Mix of account types on your report
• E.   10%   Inquiries
  # times you applied for credit in the last 12 months

This info is courtesy of Derrick Evens of Perfect Credentials.
http://www.perfectcredentials.com/

Want a referral to excellent mortgage brokers I have worked with, send me an email.

A few little tidbits I read today

…Ugly little secret: Even APPLYING for a loan modification can whack your credit. A lender tells me getting a loan mod devastated one client's FICO scores by 130 points

FICO scores are a complicated puzzle. No matter where I turn I get a huge variety of answers regarding how much your credit score will take a hit if you miss several payments on a credit card versus declaring bankruptcy.

April rains and HAFA

April brought with it more rain and some new guidelines for short sales. The new HAFA or "Home Affordable Foreclosure Alternatives Program" is designed to help homeowners avoid if they chose to do a short sale or Deed-in-Lieu foreclosure. Only time will tell if this really helps the process or not. Read the whole story on the HAFA website. Read the whole story at the website  http://www.makinghomeaffordable.gov/hafa.html

Spring is here and we are at 105

We have now hit 105 homes on the market in Alameda. For quite a long time we have had a low inventory below 100. This can be a chicken and egg scenario with buyers. If nothing new is coming on the market buyers are not as interested and so fewer homes sell.  This can be expected in the winter months, it's common to have a seasonal slowdown. Spring is here and so are new homes and with it some excitement and interest from buyers. Of course it's always the case that the best homes can get most of the interest while some that have been on the market get stale and suffer from lack of interest. Pricing is even more key because if these homes stick around and do not go through price reductions then they really get forgotten about. In this environment pricing is key no matter where the home is.

2125 Spaulding New Listing in Berkeley

This Victorian sits on a charming tree lined street in central Berkeley and has been completely remodeled top to bottom. With a new kitchen, bathroom and furnace. Hardwood floors and mostly new dual paned windows. Many upgrades to systems, plumbing, electric. New foundation and seismic upgrades with the basement ready to finish out to create your own expansion possibilities. Large & lush landscaped yard to garden or entertain. Walking distance to shopping and North Berkeley Bart.
So much more than the stats show you have to see it to get it! More photos at 2125spaulding.com

1412 Seminary New listing

Come discover this hidden gem. Located on a quiet private driveway this cozy Bay Farm home has an updated kitchen and bathroom. With hardwood floors and dual paned windows you can walk out your dining room to a spacious backyard overlooking the golf course. Perfect for entertaining, gardening or relaxing. Close to Godfrey park, shopping and in a desirable Alameda school district. This home is move in ready. OHSun 3/14 2-4 pm. See more photos on my website at 1412seminary.com

First time homebuyer tax credit

The first time homebuyer tax credit effectively ends on April 30th. This is an $8,000 tax credit for homebuyers. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
Read more here.

IRS rules for claiming first time homebuyer tax credit

The Internal Revenue Service recently released the new form that eligible homebuyers need to claim the first-time homebuyer credit this tax season and announced processing of those tax returns will begin in mid-February. The IRS also announced new documentation requirements to deter fraud related to the first-time homebuyer credit.

With the release of Form 5405, First-Time Homebuyer Credit and Repayment of the Credit,and the related instructions
, eligible homebuyers can now start to file their 2009 tax returns.

In addition to filling out a Form 5405, all eligible homebuyers must include with their 2009 tax returns one of the following documents in order to receive the credit:

* A copy of the settlement statement showing all parties' names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
* For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.
* For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

In addition, the new law allows a long-time resident of the same main home to claim the homebuyer credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. The IRS has stepped up compliance checks involving the homebuyer credit, and it encouraged homebuyers claiming this part of the credit to avoid refund delays by attaching documentation covering the five-consecutive-year period:

* Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
* Property tax records or
* Homeowner’s insurance records.

More details on claiming the credit can be found in the instructions to Form 5405, as well as on theFirst-Time Homebuyer Credit page
on IRS.gov.

Source: IRS.gov

More short sale shenanigans

Walking away, is this irresponsible. Don't ask a banker!

I recently read this article in the New York Times regarding bankers and politicians call to not have homeowners not walk away from their mortgages.  Interestingly enough the article makes it clear that business and in particular their business do this all the time. It even cites how Morgan Stanley actually chose to stop paying on an office buildings they bought in San Francisco. 

As quoted from the article.  Brent White, a University of Arizona law professor has argued that the government should stop perpetuating default “scare stories” and, indeed, should encourage borrowers to default when it’s in their economic interest. This would correct a prevailing imbalance: homeowners operate under a “powerful moral constraint” while lenders are busily trying to maximize profits. More important, it might get the system unstuck. If lenders feared an avalanche of strategic defaults, they would have an incentive to renegotiate loan terms. In theory, this could produce a wave of loan modifications — the very goal the Treasury has been pursuing to end the crisis.

To be sure if you are a homeowner you should try every available avenue before walking away. i.e. loan modification and possibly a short sale.  These damage a homeowners credit rating less.  Being in the business of help people into or out of a home by their own choosing I am furious at the mess created by these large banking institutions and the government that relaxed the rules enough to let them do it.

So I say if you are a homeowner and have not gotten any satisfaction from whoever owns your loan now, walk away.  Free from the notion that you have some moral obligation to the bankers.  If you are trying to get a loan modification and have not had any luck with your lender give me a call I recently met someone who has had success with these.  If you are interested in exploring the idea of a short sale I can help you.

Fast facts courtesy of CAR

Click here to view a snapshot of Alameda home sales from 2009.

A few fast facts about the real estate market courtesy of the
California Association of Realtors.
Right now the affordability index is at an all time high.
I remember that sometime around 2004 I saw this and it was hovering around 15%

Calif. median home price: November 09: $304,520 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region November 09:
Santa Barbara So. Coast $750,000(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region November 09:
High Desert $124,710 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - Third Quarter 2009: 64 percent (Source: C.A.R.)
Mortgage rates - week ending 1/7/10 30-yr. fixed: 5.09 Fees/points: 0.7%
15-yr. fixed: 4.50% Fees/points: 0.7%
1-yr. adjustable: 4.31% Fees/points: 0.6% (Source: Freddie Mac)

Happy New Year! And welcome 2010!

The New Year is here and probably a welcome sight for many in the real estate business.
This year was filled with many ups and downs for those looking to buy or sell a home.
For those who were buying the tax credit combined with declining prices were probably good news.
For those looking to sell a home declining prices were the opposite.  In Alameda we suffered from a low inventory.  Which made the good homes on the market even more competitive.



I worked with many first time home buyers this year. Many were excited to be bidding on homes they might have been priced out of even a year ago. Despite whatever was going on in the media I still found myself in competetive bidding situations with almost all my buyers.  The national news stories about the real estate market give you very basic and general information about what is going on.  Particular area's in Alameda remained strong but more specifically particular homes were the hot ticket... or not.  Great presentation combined with a competitive price brought in multiple offers.  Even lousy presentation but a great starting price on a bungalow brought in multiple offers.  I see prices stabilizing and can expect the same to continue through the beginning of the year.  This spring and summer will be a litmus test to see if we have really turned a corner and are on our way back to a "healthy" housing market.