Category Archives: Uncategorized

Get the Most out of Black Friday Retail Deals

Hello again and Happy Thanksgiving!

This holiday season is right around the corner and you know what that means: Black Friday. While many people brave the crowds before dawn to capitalize on big savings from major retailers, others sleep in and surf the internet for similar deals.

Whatever your strategy, this month’s information helps you prepare for the holiday shopping season. The first page offers tips and tricks to help you score deals on gifts for everyone on your list. Page two provides valuable information about how to avoid scams and protect your credit and debit card information both in the store and online. Feel free to share this useful information with your family or friends.

To open this pdf click here: Holiday Deals

As an extra bonus this holiday, click here Smart phone apps for “5 Free Apps” to save you even more money this Holiday Season.

Have a safe and happy Thanksgiving!

LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED

In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder.  Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale.  This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units.  Any purported waiver of this rule shall be void and against public policy.

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale.  A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

This law is fully set forth as Senate Bill 458 (Corbett) at www.leginfo.ca.gov.

Have You Saved Enough for Retirement?

Over 51 percent of Americans participate in a retirement savings plan; however, many feel that they will not have enough money to support them in retirement. Some have even postponed the age at which they planned to retire in an attempt to save more money.

This month, you can see pertinent information about the Roth IRA, a flexible tax-free retirement savings account especially beneficial to young people and those with limited incomes. The first page provides an overview of the Roth IRA, including its advantages and limitations. Page two examines how the Roth IRA can be used to help you save for large investments, such as college, the down payment on a first home or other events that cause many people to exhaust their retirement savings. Since many people are interested in ways to save money for retirement, feel free to pass this information on to your family and friends.

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For you who are on this page, I have also included a “Bonus” page with more special information.

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If you would like to learn more about Roth IRAs, please call me for a referral to a financial service professional.

Lenders stop accepting some applications, prices to rise??

In anticipation of the expiration of current loan limits on Sept. 30, 2011, Bank of America has decided to stop accepting conventional and government applications for loan amounts that will exceed the permanent loan amounts.  The deadline to submit loan applications was July 1.

According to an email from Bank of America, conventional loans that exceed the permanent loan limits will now be required to use non-conforming programs.

Barring Congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum. 

In San Diego county, the limit will be much lower! For single units (homes condos etc.) it will be $546,250 and for 2-4 unit buildings the limits will be $699,300, $845,300 and $1,050,500 respectively.

The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee.  Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.

SO WHAT DOES THAT MEAN FOR YOU?

Anyone who is trying to buy or sell a home below these limits will find no real change in the loan process but should expect prices to increase, while those above these limits will find the market slowing.  Why? It will be harder to sell in the higher price range because of a drop in demand due to fewer people being able to come up with the higher down payment required for the ‘non-conforming’ loan. I expect prices to drop in those areas. Ironically I expect buyers in the lower price range to compete more for the homes they can afford and thus those homes will increase in value, driving the ones close to the limit higher in price and perhaps even above it.  The result: There will be a bifurcation of home values, with the demarcation at the loan limit. That will impact a large number of both buyers and sellers, with the markets reacting in very different ways.

Over the long-term I anticipate the banks will stop overreacting to the mess they created previously and return to a more centrist, logical view to lending when the markets will again achieve balance. But don’t expect that for 2-4 years.

Our only hope is that Congress will act to buffer the expected change. So contact your representatives and ask them to support the real estate market, and thus the economic recovery, by toning down the too strict rules against non-conforming loans.

Please call to discuss or comment.

More proof that Commercial Real Estate (CRE) is doing fine!

Many people expect the same amount of ‘chaos’ to occur in the CRE market. Again this is an example of the mass media only telling us the bad news. Here is an article which shows that CRE is placing LESS risk on the banks. The real estate recovery is here. The advice I give to investors is to buy now if you can. Real estate is having a sale of 35% off, with loans at record lows. Call me to discuss your investment plans if necessary.

http://www.costar.com/News/Article/LESS-DISTRESS-CRE-Taking-Less-of-Toll-on-Nations-Banks/130041?ref=100&iid=238&cid=12B15AF8617480C1523CF21CD48DF87D

Will San Diego Real Estate experience a “Double Dip”?

Many clients are asking me whether the double dip in real estate will really happen. I am personally very optomistic for the medium and long term in San Diego real estate. ALL real estate is local. Please do not just read or listen to the headlines you hear in the media. Probe a little and find whats going on in your own back yard. This short interview (link below) which aired on PBS recently features two experts, Gary London, a local real estate economist and Alan Gin, a professor at USD who compiles the San Diego Consumer Confidence index. It highlights the view that San Diego is somewhat isolated from the overall market and will ‘bounce’ around for a while before rebounding. If you would like some insight into your own home and neighborhood, please contact me to chat.

http://www.kpbs.org/news/2011/may/31/san-diego-economy-real-estate-holding-steady/