Real Estate

Super Real Estate Agent, Millionaire to Pauper

Miami-condo-views

This is an interesting story of how much money you can make in real estate and lose it just as fast.

It’s the perfect morning at Carlos Justo’s Miami penthouse — warm and bright, with luxury yachts powering through the sparkling blue Atlantic Ocean some 30 stories below.

Carlos Justo, a 53-year-old real estate agent, has been awake since 3:30 a.m. but he shows no sign of fatigue. His eyes scan back and forth, from the high rise condos, to the water, and back to the condos.

An assistant, sitting at a glass table with her back to the stunning view, is talking business. She wants to know whether he will receive any commissions or checks anytime soon.

“Right now, we don’t have any money,” Justo says. He continues talking. Fast. Pacing back and forth, he gazes out the window.
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Real Estate

Shall I walk Away From My House? Part 2

house-underwater

Thinking of walking away from your home because your property values have dropped to below what your mortgage is? You might consider that if you do walk away, what are you going to do? You’ll have to rent, your credit score will be ruined for seven years and you will have lost the home that you call your own. A home in which you could gain a profit from in the future. A case in point is the story of David Bach.

“In an interview with the AOL.com personal finance Web site, Walletpop.com, Bach said about 50 percent of homes in foreclosure are there because their owners walked away from underwater real estate. He calls that “stupid, short-term thinking” and recalls a condo he bought in New York City in 2003. He put down $600,000, then property values dropped and he lost all his equity. “I was bummed,” he said.

But the loss wasn’t permanent. Four years later he sold the condo for $3.65 million – and made a $1.5 million profit, after commissions and taxes.

Some people might have thought it was “logical” to walk away, he said. “But it would have cost me $1.5 million.”

We are not going to be in a recession forever, and real estate values will increase again. You always have “experts” who predict the world is going to end and bad times will last for an eternity. Don’t listen to them; look at the economic history of this Country, the economy cycles up and down. We are in a down cycle now, but we’ll soon be out of this downturn and property values will go up.

Real Estate

New Rules Protecting Home Buyers Effective Now

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Since the days of the Wild West in doing home mortgages, more and more tightening of appraising and mortgage lending is occurring. I think the changes are for the good, since you can blame the banks, wall street and some large mortgage companies who are no longer in business for the meltdown we had in the housing market.

There is so much double talk in some mortgage companies, such as advertising low teaser rates to lure you into doing business with them. Once you start working with these companies, the true cost of the loan becomes apparent. I always advise my clients to work with their local bank or mortgage company, rather then an online mortgage company. My experience with them is that they tell you the rate for your mortgage upfront and that’s what you get.

The locals know the market better, and in Nevada County and other Gold Country Counties that is very important. These counties tend to have a variety of homes, and there are few if any major subdivisions. Getting a comparable home to the one you may buy is sometimes quite difficult. Unlike a large city, where you may have a thousand homes that are similar, here you are lucky to find another home similar to yours.

Anyhow, the new rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending) went into effect July 30, 2009. The revisions implement the Mortgage Disclosure Improvement Act (MDIA), which was enacted in July 2008 as an amendment to the Truth in Lending Act (TILA). It is possible that these new requirements may cause delays in getting loans, and if you are purchasing a home, it may delay your closing date.

The MDIA requires creditors to give good faith estimates of mortgage loan costs (“early disclosures”) within three business days after receiving a consumer’s application for a mortgage loan and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer’s credit history, according to information from the Federal Reserve. The MDIA also requires early disclosures for loans secured by dwellings other than the consumer’s principal dwelling, such as a second home.

In addition, the rules would implement the MDIA’s requirements that creditors wait seven business days after they provide the early disclosures before closing the loan; and that creditors provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance, according to the Federal Reserve. The rules also would permit a consumer to expedite the closing to address a personal financial emergency, such as a foreclosure.

Entertainment, nevada county fair

Anheuser-Busch Clydesdales at the Nevada County Fair

Budweiser-Clydesdales

The world famous Budweiser Clydesdales will be at this year’s Nevada County Fair, August 12 – 16. This magnificent team of horses will be available in the livestock area for viewing each day of the Fair, during regular Fair hours.

The first team of Clydesdales arrived at the Anheuser-Busch brewery on the heels of Prohibition’s repeal by Congress; they were a gift to St. Louis beer maker August A. Busch from his son. In April 1933, the team first thundered away from the brewery carrying cases of beer. Since then, the prancing team and their red, white and gold beer wagon have become one of the world’s most recognized advertising symbols.

The Budweiser Clydesdales are a continuing reminder of the work Draft Horses performed in the earlier days of our country’s growth.

The Nevada County Fairgrounds extends their thanks to NorCal Beverage Company for their support in bringing the Budweiser Clydesdale Hitch to the 2009 Nevada County Fair and for serving as a Premier Fair Partner.

This year’s Nevada County Fair, “A Hare’s Magical A-Fair,” is August 12 – 16. For information about special contests, ongoing entertainment, and demonstrations, visit Nevada County Fair

For amazing Draft Horse performances, the Fairgrounds also hosts the 23rd annual Draft Horse Classic and Harvest Fair, September 24 – 27, at the Nevada County Fairgrounds. For tickets or information, visit us at Nevada County Fair or call (530) 273-6217.

Real Estate

Foreclosures of the Rich & Famous

Former NBA star Vick Baker's home lost to foreclosure
Former NBA star Vick Baker's home lost to foreclosure

It seems like no matter how much money some people make, some of them don’t seem to be able to manage their money.

It’s not like a person who has worked hard all their life, suddenly loses their job and is forced to sell their home. But making millions of dollars and not preparing for an economic downturn seems ludicrous compared to someone just getting by.

 For example here is slide show of 20 Rich & Famous people who have recently been through foreclosure. Apparently glamorous celebs can and do fall back on mortgage payments, taxes, and (occasional) alimoney? 

Click Here To Watch A Slide Show Detailing The Foreclosures Of The Rich & Famous

Business, Real Estate

Economists Optimistic That Market Is Upward Bound

economic-upturn

Well, you can get a room full of economists and get a room full of different opinions. But according to USA Today it seems that two-thirds of the economists agree that we may have hit bottom. Here’s the article, let’s let a little sunshine in.

“Economic recovery is still a few months away, say economists surveyed by USA Today, but two-thirds of them think existing-home sales have bottomed out.

Both housing and automotive markets “have the potential to generate some quite large percentage increases,” says Bill Cheney, chief economist at MFC Global Investment.

Overall, economists say unemployment won’t peak until the first half of next year and credit markets will remain tight.

“I think (the recovery) is going to be anemic,” says Allen Sinai, chief economist at Decision Economics. “I don’t think consumers have the wherewithal to buy a lot of cars and a lot of houses.”

For full story, click here: USA Today, Paul Davidson; Barbara Hansen

Entertainment, nevada county fair

Mutton Bustin’ & Calf Scamble at Nevada County Fair

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boy-riding-sheep

Two new arena events – Mutton Bustin’ and Calf Scramble – are planned for young children and teens in the Arena on Wednesday and Thursday night of the Nevada County Fair, August 12 – 16.

Featured in the Arena during the Professional Bull riding on Wednesday and the Rodeo on Thursday will be Mutton Bustin’, where eight young cowboys and cowgirls between the ages of 5 and 7 years old will get the chance each evening to mount their trusty sheep and head for the thrill of their young lives. Participants must be between the ages of 5 – 7, and must not weigh more than 65 pounds.

Also featured at the Arena on the same two nights will be the Calf Scramble, where ten teams, each consisting of a boy and girl, will compete with one another to catch, halter and coax their calf across the finish line. Participants must be between the ages of 12 – 18, and must weigh at least 100 pounds.

Western attire is required for both events, and there is no entry fee. Great prizes will be awarded for both events. For the Mutton Bustin’, prizes are $50 for first prize, $25 for second prize, and $10 for third prize. For the Calf Scramble, prizes are $100 for first prize, $50 for second prize, and $25 for third prize. There are a limited number of spots available, so call the Fair Office at (530) 273-6217 to reserve a spot in either event, as well as obtain an application and a list of rules.

This year’s Fair is August 12 – 16. Each evening of the Fair features a thrilling arena event. Wednesday is Professional Bull Riding; Thursday is the Rodeo; Friday is Tuff Truck Racing and Monster Trucks; Saturday is Free Style Moto X Riders and Monster Trucks; and Sunday is the Demolition Derby. Purchase your arena event tickets before August 11 and get admission to the Fair for only $5. Visit < href=www.nevadacountyfair.com>Nevada County Fair for more information

Real Estate

Need a Loan Modification? Be Careful

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loan modification

As part of a consumer alert, Attorney General Jerry Brown’s office issued the following tips for homeowners to avoid becoming a victim:

DON’T pay money to people who promise to work with your lender to modify your loan. It is unlawful for foreclosure consultants to collect money before (1) they give you a written contract describing the services they promise to provide and (2) they actually perform all the services described in the contract, such as negotiating new monthly payments or a new mortgage loan. However, an advance fee may be charged by an attorney, or by a real estate broker who has submitted the advance fee agreement to the Department of Real Estate, for review.

DO call your lender yourself. Your lender wants to hear from you, and will likely be much more willing to work directly with you than with a foreclosure consultant. (My experience is that this statement is partially true However, they will listen to an attorney before they will listen to you. Some of the original mortgage contracts that consumers signed are fraudulant)

DON’T ignore letters from your lender. Consider contacting your lender yourself, many lenders are willing to work with homeowners who are behind on their payments.

DON’T transfer title or sell your house to a “foreclosure rescuer.” Fraudulent foreclosure consultants often promise that if homeowners transfer title, they may stay in the home as renters and buy their home back later. The foreclosure consultants claim that transfer is necessary so that someone with a better credit rating can obtain a new loan to prevent foreclosure. BEWARE! This is a common scheme so-called “rescuers” use to evict homeowners and steal all or most of the home’s equity.

DON’T pay your mortgage payments to someone other than your lender or loan servicer, even if he or she promises to pass the payment on. Fraudulent foreclosure consultants often keep the money for themselves.

DON’T sign any documents without reading them first. Many homeowners think that they are signing documents for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership to the “rescuer.”

I am a partner with Sarah O’Neal, an attorney and we can help you with your loan modification or short sale. We do not take upfront fees. You are asked to fill out an application to determine if you might qualify for a loan modification. After reviewing your application, Sarah can advise you if you might qualify for a loan modification. See our website for more information Lets Stop Foreclosure

Real Estate

Craigslist, A New Twist on an Old Real Estate Scam

house-for-rent

In a different twist on an old scam, real estate scammers are using new tricks to try to pull a fast one on people searching for a place to rent.

Although everyone thinks they would never fall for a scam, it can happen to anyone. Recently, the people doing the tricking are getting more creative.

You may know that agents list properties for sale on Craigslist.

Instead of just trying to get you to send money in exchange for a key, sight unseen, now scammers are actually putting victims in touch with legitimate real estate agents.

The individual is being told, call the agent, they’ll show you the property, but don’t say anything about renting because I’m the owner and I don’t want them to know I’m going to take the listing away from them.

Once the potential renter has fallen in love with the house, they’re told to send the alleged owner a security deposit. With one pen stroke, the scammer has tricked both the buyer and agent.

Now that they’re more aware of the issues, most agents are being pro-active and trying to stop any fake rentals before things go too far.

Your best protection is to ask the agent if the owner wants to rent the house. Most listing agreements cannot be cancelled by the owner unless the real estate agent agrees to the cancellation.

The best advice, however, is to work with someone you trust, and remember if it seems too good to be true, it probably is.

It is important to note that there are legitimate listings on Craigslist. The site has become a popular place for agents to post listings. If you are searching on Craigslist, just remember to use caution and do your research if you find something that interests you.

Real Estate

Nevada County Home Sales Up April to June 2009

sold-sign2

Nevada County homes sales increased in the three months of April to June, 2009 compared to the same period in 2008 by 14%. Sales for the three month period in 2008 were 203 housing units compared to the three month period in 2009 of 231 housing units. However, the average sales price dropped 17% in the three month period of 2008 which was $417,250 compared to $345,931 for the same three month period in 2009.

In addition the number of foreclosure proceedings started against California homeowners fell slightly in the April-through-June period compared with the prior three months, but remained higher than last year. The dip from earlier this year occurred as lenders and their loan servicers took time to revise procedures and priorities in an environment of continuing home price depreciation, economic distress and mortgage defaults, a real estate information service reported.

Lenders sent out a total of 124,562 default notices during the second quarter (April through June). That was down 8.0% from the prior quarter’s record 135,431 default notices, and up 2.4% from 121,673 in second quarter 2008, according to MDA DataQuick. The San Diego firm tracks real estate trends nationally via public property records.

“There is a perception that the housing market is dragging along bottom, that it probably won’t get much worse, and that the lenders need to get serious about processing the backlog of delinquencies, either with work-outs or foreclosure. We’re hearing that some lenders and servicers are doing just that, hiring more people to do the necessary paperwork. That means the foreclosure numbers will probably shoot back up during the third quarter,” said John Walsh, DataQuick president.

The median origination month for last quarter’s defaulted loans was July 2006, the same as during the first quarter. A year ago the median origination month was April 2006, so the foreclosure process has moved three months forward during the past 12 months.