Slight increase in home ownership – maybe this is the start of something big!

Housing Market Woes

The Census Bureau and the Wall Street Journal reported Wednesday that the nation’s seasonally adjusted home-ownership rate stood at 66.1% in the third quarter, up slightly from 66% in the previous quarter, though down from 66.7% a year earlier. The rental vacancy rate was 9.8%, up from 9.2% in the second quarter and down from 10.3% a year earlier.Rentals will continue to have strength as the displaced homeowners move into the rental marketplace.
Industry watchers warn against reading too much into results from a single quarter. The increase is small and the number might  begin declining again in the fourth quarter, when colder weathermeans fewer Americans buy homes. Paul Dales, a senior U.S.economist with Capital Economics, said he was initially surprised by the increase. “I don’t think this alters the long term trends that have been going on,” he said. “The overall housing market will remain weak and the rental market will remain strong.”

 

It appears that the status quo might remain for a while. Many believe that 2012 will be virtually flat but that it will be a great year to buy investment property.

We have an incredible track record with short sales. Get my free book Fighting Foreclosure at www.shortsaledignity.com

San Diego and breakfast!

dupars

I like plain ol’ breakfasts. Ham and eggs, pancakes, hash browns, OJ.  Nothing too exciting. Well I have found my top 10 places for you to “breakfast” in San Diego.  They don’t have to be fancy or cheap.  They don’t have to be a hole-in-the-wall or lavishly expensive.

I just like the food and like to eat there. They are not “rated” as I like them all.  They are not categorized geographically, as you can pretty much drive to all of them in under 15 minutes.

Just go and enjoy.

Original Pancake  House

Richard Walkers

Ricky’s

Brians’ American Eatery

Cafe on Park

The Mission

Hash House A Go Go

The Huddle

Du Pars

San Diego Home Cookong

These are my ten favorite

Choosing a home- I saw these helpful hints. Check it out.

choosing a home
There’s no doubt that choosing a home is a big decision and you want to do it right. As a buyer, here’s what actually happens. A home has been placed on the market for which the seller has established an asking price as well as other terms. In effect, this is an offer.
At this point, you have three choices: accept the seller’s offer and create a contract; reject it and not make an offer; or suggest different terms and make a  counter-offer. If you choose this last option, the seller may accept, reject or  make a counter-offer.
No aspect of the home buying process is  more complex, personal or variable than bargaining between buyers and sellers.
This is the point where the value of an experienced REALTOR® is clearly evident  because he or she knows the community, has seen numerous homes for sale, knows  local values and has spent years negotiating realty transactions.
Is it THE  house? Is this the one?  A house is shelter, but a home is far more. It’s where you  live, relax, entertain friends, raise families, and work. A home is where you  spend much of your life, and so choosing a house is an enormous decision.
How do you know if a house is THE one?  Probably the best approach is to look at as many homes as possible, something
made easy by Realtor.com, where you can quickly and easily view huge numbers of  homes, check prices, take video tours and view extensive neighborhood  information. Once your choices have been narrowed, you can then contact a local  REALTOR® to find specific information and options.
Can you really  afford it?  And remember get a pre-approval? Getting  pre-approved means you have a very good idea of how much you can borrow, what  loan programs will most likely work best in your situation and how much home you  can afford.
How reliable is a pre-approval? While  pre-approval is not a loan commitment, it’s still necessary for lenders to check
such items as appraisals and the latest credit reports. Despite fluctuating  interest rates, pre-approval nonetheless provides a reasoned, careful analysis  of what you can afford. After all, loan officers are routinely paid only when  loans are originated. It doesn’t make much sense for loan officers to suggest  high loan limits that later can’t be delivered.
Please call me if you are ready to buy.  Also, if you are having any issues with your mortgage, contact us.  Get my free book Fighting Foreclosure by visiting ShortSaleDignity.com

Underwater? – This might help! FHFA

FHFA

FHFA announces new program to help ‘underwater’ homeowners

The Federal Housing Finance Agency announced on Monday morning new rules that will allow many more “underwater” homeowners – who owe more than their properties are worth – to refinance at today’s ultra-low rates.
FHFA estimates up to a million borrowers will use the program, which was originally rolled out in early 2009 and has fallen far short of the number of people it was supposed to help.

Only mortgages backed by Fannie Mae and Freddie Mac will be eligible.

In the past, borrowers who owed only more than 25 percent more than their homes are worth could participate in the program. Now, there is no cap on how much a borrower owes.

Officials hope that by reducing monthly payments, more homeowners will avoid foreclosure, and free up more cash to spend on the economy.

Read more at at this site. If you need ANY real estate help in San Diego, call me for assistance – anywhere else, call me for a referral.

Fight Foreclosure – get my free book Fighting Foreclosure

Why Use an ABR®: REALTORS® Experienced in Buyer Representation !

abr

Buying a home is no small matter. Besides being the largest financial transaction you may ever undertake, it’s probably also the most complex. There are many good reasons to work with a qualified real estate professional—especially a trained professional who has earned the Accredited Buyer’s Representative (ABR®) designation, representing best-in-class buyer services.

When you look for an ABR® before you look for a home, you’ll be served, not sold. Your interests become their interests. And you’ll be working with someone who has gone the extra mile by completing specialized training in delivering the best in buyer-representation services. Plus, a REALTOR® who has an ABR® Designation also has an established track record, with proven experience in representing the concerns of home buyers.

The ABR® Designation is awarded through the Real Estate Buyer’s Agent Council, or REBAC, which was founded in 1988 to promote superior buyer-representation skills and services. REBAC is an affiliate of the National Association of REALTORS® (NAR).

If you are in San Diego, I work with buyers throughout the county. Call me at 619.985.6528. If you are anywhere else, call me and I will refer you to an incredible ABR in your area. (or just email if you prefer).

And…if you are behind on your mortgage payments, go to ShortSaleDignity.com

San Diego’s own Susan Davis proposes the Short Sale Transparency Act.

Susan Davis (D-San Diego)

Susan Davis (D-San Diego)

A bill authored by House member Susan Davis (D-San Diego) was introduced  to Congress to give homeowners at risk of foreclosure a fair chance to avoid further damage to their credit rating. The Short Sale Transparency Act would require the nation’s giant mortgage lenders, Freddie Mac and Fannie Mae to disclose the minimum price they would be willing to accept for a short sale property if the first offer to purchase a home is not accepted.

This law would force bankers to provide the minimum price in an effort to aid the housing market.

Properties that are sold as short sales sell for less than what is currently owed on the mortgage principal, and must be approved by lenders in order to transfer title without blemishes on their title.

Short sales have increased as a last ditch effort by homeowners to avoid foreclosure. When the price a lender requires is unknown, short sales often become less viable. The “shot in the dark” method for determining bids to offer the bank are creating much wasted effort on all involved.

Loan servicers often repeatedly deny short sale offers without providing homeowners any guidance on the price the lender is willing to accept. As a result, many homeowners that may have sold their property as short sales end up as foreclosures. The bill would require lenders to disclose the minimum price that banks would take for their home to provide a level playing field for homeowners, banks and investors.

 

“People deserve a real chance to avoid foreclosure,” said Davis. “It is unfair to expect someone to complete a short sale instead of abandoning their home to foreclosure, if the banks don’t meet them half way. So many homeowners are willing, even eager to work with banks to get out from under the mortgage and protect their credit rating,but far too often, they find themselves in a guessing game as to what dollar amount will complete the sale.”

The bill was offered just weeks after another California Congresswoman, Maxine Waters (D-Los Angeles) called on President Barack Obama to offer bold solutions on jobs and the foreclosure crisis. Waters said Obama should demand bankers modify mortgages for millions of homeowners at risk of foreclosure.

The veteran Congresswoman has been a leading voice for homeowners at risk of losing their homes, calling for a foreclosure moratorium after the robo-signing scandal made headlines a year ago, and has lobbied to help homeowners and tenants renting properties at risk of foreclosure.

It appears the call to action is building, but it needs to happen now. For many, the legislation will be to little , too late.

All the short sale information you need go to ShortSaleDignity.com

California leading the way! No not yet.

Want to move to West Virginia?

The chart below lays out the top 10  (the only 10) cities that have experienced a year over year increase since last August. California, although starting to fall in place is not there yet.

We do expect San Diego prices to start rising soon as the inventory is low enough to create an upward pressure on price.

Want to buy a house in West Virginia?

One thing is for sure, 2012 and 2013 will be very interesting years for the housing market. There are quite a few variables including interest rates, how lenders will handle REO’s and short sales, and what the government will do.

One thing is for sure right now though…the interest rates are the lowest in history and prices are the lowest in 5 years. Chances are prices will not be this low again in our lifetimes.

How can you take advantage? Use any investment money to purchase real estate. Buy a condo and rent it out. When you calculate the numbers, you can easily get a positive cash flow with as little as 20% down.

If you want to take advantage of this opportunity of a lifetime in San Diego, call me at 619.985.6528 or visit the best property search in San Diego at AtHomeInSanDiego.com

One last thing for now….the current economic times have been difficult for many. If you are having mortgage challenges, don’t ignore them. They don’t go away by themselves. Check out my website at ShortSaleDignity.com .  There you will find my free book  Fighting Foreclosure. I can assist in San Diego but can also refer you to the best Certified Residential Specialist and short sale professional in your area.

CoreLogic August Home Price Index (year-over-year change)

State/district All single-family Excluding distressed sales
West Virginia 8.6% 10.7%
Wyoming 3.6% 2.4%
North Dakota 3.5% 4.2%
New York 3.2% 3.6%
Alaska 2.2% 3.1%
South Dakota 1.5% 0.6%
Washington, D.C. 1.3% 1%
Nebraska 1.1% 1.1%
Kansas 1% 3.7%
Indiana 0.8% 2.2%

San Diego home prices….Time to buy?

dataquick

Well the news is not great, but the area is , as they say, “hangin’ in there”. Home prices in San Diego County fell in September, while sales numbers were mixed, the latest DataQuick report shows. Figures for Southern California also were mixed, with the same economic factors in play: the pursuit for lower-priced distressed properties, financial uncertainty and lower-than-normal mortgage rates.

Locally, the median price for all sales – including resale homes, resale condos and new homes – was $315,000 in September, down 1.6 percent from August and down 4.7 percent from a year ago. The new-homes sector was the only area that saw a year-over-year price gain, rising from $439,250 to $515,000, or 17.2 percent.
The county recorded 3,084 sales in September, down 5.1 percent from August but up 0.5 percent from the same time last year. The only sector that saw a positive year-over-year gain in sales last month was resale homes, rising 6 percent.
As a region, there were 18,149 total sales, counting Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in September. That figure is down 7.7 percent from August and up 0.3 percent from a year ago.
Demand is staying moderate because of affordability. The interest rates remain at or near all-time lows. In addition, prices are still at or near all time lows. What a combo, you would think demand would be through the roof. However, loans are still difficult to get and many people feel economic woes and are putting off any kind of “large purchase”.
Historical data from the data company show sales have fallen on average 8.3 percent between those months since 1988, when the real estate data company began tracking those numbers.
Meanwhile, the median price for total homes sold last month was $280,000, up 0.4 percent month-to-month but down 5.2 percent from a year ago.

Those who have the means who buy now will be looking back in 5 years saying “Thank god I bought those properties when I did!” The rest will be looking back and saying “If only I had….”

If you are lucky enough to be looking in San Diego, call me at 619.985.6528 or send me an email. And…if you are having any kind of mortgage difficulty, visit ShortSaleDignity.com.

Please feel free to leave any comments — thanks!

Two sides of the internet – One awesome, the other not so much…

imagesCAF6N7NQ

As is customary on Sundays, I will post on a topic which may or may not have any connection to Real Estate. I have a friend who writes incredible articles on current topics. This article is on an important topic so this is what I choose to share today. Although we have all come to rely on the internet for many things, it is a very important part of my business. Ah…but there is a dark side!

Do all you can, and if we each try a little maybe we could have an impact. This is a very important issue. Please share your comments.

Hate, abuse, intentional pain… the dark side of the Internet gets worse while we wonder what we can do.

By Dr. Jeffrey Lant

Author’s program note. I remember Mickey Mouse, in 1939, as the sorcerer’s apprentice, deciding to see for himself just what the sorcerer could do … certain he could control the great power and even greater potentialities which the sorcerer respected and managed so well.

But we all remember that Mickey lost all control and created one escalating problem after another. And it was all set to the onrushing whirlwind of Modest Petrovich Mussorgsky’s “Night on Bald Mountain,” (written 1867), pulsating music that contains — like the Internet itself –                                                 Force! Power! And the capacity, as Mickey came to learn to his chagrin, to overwhelm mere humans and our toehold on this planet. So, for this article about an invention of great power, even greater power to come but with a proven ability to be greatly misused, nothing less than “Night on Bald Mountain” will do.

Find it in any search engine… and play it only when you are sure to be uninterrupted. It is the perfect incidental music to this article about how  — yet again — thoughtless people, selfish people, misguided people, angry people and, yes, dangerous people are perverting one of the most important developments in human history. It is an unfolding tragedy with unanswerable evidence mounting and a backlash sure to come.

Rise in anti-Semitism tied to online  groups.

In the olden days of ,say, 25 years ago, it was relatively difficult for people of malice and murderous intent to find each other, meet, collude, and destroy. Now it is almost child’s play. A  self-appointed leader, an individual of warped vision and an electronic touch, can create what old-time Bolsheviki would have called a “cell”. From this protected place of irresponsible behavior, the leader, in process of morphing into a mini-messiah, would recruit, proselytize and dream of when he would be God. Now this insidious process takes just a few weeks… or even days, taking on speed and momentum as it grows worldwide and threatening.

Right this minute there are hundreds, maybe thousands, of these mini-messiahs online… and they do not have to guess at the power of the ‘net or how to wield it. They have seen it in the streets of Cairo and around the world.

Hate fuels these groups and restless young people are easy targets. The disenfranchised and powerless always gravitate to the “men of destiny,” and these proliferate on the Internet… spreading venom… thereby proving to all who will listen — and there will always be such people — how superior and desirable they are.

And so Jews are hated and attacked… gay people are hated and attacked… immigrants are hated and attacked. And it can all be done under the cloak of anonymity. An informal, but revealing new report by the Massachusetts Anti-Defamation League shows just how serious this situation is and predicts more of the same… for every hate group needs a scapegoat and these targets are already well known.

The report by the Anti-Defamation League, a civil rights organization, is a compilation of records from local law enforcement agencies, along with reports from victims and witnesses of harassment or hate crimes. 18 percent of the anti-Jewish incidents involved a form of electronic communication — easy, irresponsible, cowardly, anonymous.

Among many worrying aspects of  this matter, this fact is perhaps the most unsettling: most hate crime offenders are between the ages of 14 and 22. They are Internet savvy and remorseless. “The Internet has become this feeding ground for individuals who hold these kinds of bigoted views,” said Jack McDevitt, a criminologist at Northwestern University.

Young find online abuse pervasive, poll says.

What do you think would happen if every youth between, say, 14 and 22 years old was suddenly granted the gift of being invisible… of being able to act out their fantasies, even the most disgusting, demeaning, deleterious and dangerous? Well, you need not wonder… for that is the state of the Internet today. Yes, at this very moment large sections of this often thoughtless, careless population are engaged in perpetrating human abuses and outrages which in the full glare of sunlight all but a few would eschew as too dangerous to do.

But now these young people, freed from the trammels of civil and acceptable behavior, give rein to the darker side of the human nature. Lying, misrepresentation, false identities are all part of their daily life online… devilry is considered cool… with the “goodie goodies” who aim for “truth, justice and the American way” disparaged and denigrated as “uncool,” the ultimate put down.

Of course in this heated environment, where up is down, some people, recognizing no limits, go too far; indeed the situation is tailor-made for the worst possible behavior from the largest number of perpetrators.

A new Associated Press-MTV poll of this youthful  population finds that most of them — 56 percent — have been the target of some type of online taunting, harassment, or bullying, a slight increase over just two years ago.

Sexting.

Fully a third of those interviewed affirm they have engaged in “sexting”, the sharing of naked photos or videos of sexual activity. And of course here the temptation is overwhelming to share these with people, lots of people, globally who of course continue the “sharing” process which in due course brings maximum embarrassment, cat-calls, insults, aggressive behaviors of every kind — and so much shame and confusion that suicide sometimes seems a better alternative than life amidst so much derision and disdain.

All this is called “digital abuse”, and it is a growing fact of our vicious, viral age. It is something every wired young person (and that is most of them) must know and deal with on a daily basis. And in due course, far too many of them will engage in activities where hurting people intentionally will be the order of their day.

What can be done?

During the writing of this article, I asked a valued colleague what he would recommend to solve, or at the very least, curtail all these unacceptable behaviors. He paused a minute and said (as I thought he might) “we must draw a line to determine what is allowed… and what is not.”

His words sounded reasonable, entirely justified, and timely. But there is no solution where words like “controls” and “censorship” are concerned. Who would appoint the people who would decide what needed to be controlled and what didn’t… and how would they decide? And that’s the problem… we are equipped for license and outrage…  we are not equipped to curtail and control.

That is why, for now, we must tolerate even the most intrusive, abashing, humiliating occurrences while the problem, like an adolescent pimple, grows and festers, until we are ready to pop it and regain some of our embattled civilities and human responsibilities. For we cannot throw the baby of the Internet out with its bath water, no matter how toxic and revolting that water is and will surely become.

About the Author

Harvard-educated Dr. Jeffrey Lant is CEO of Worldprofit, Inc., providing a wide range of online services for small and-home based businesses. Dr. Lant is also the author of 18 best-selling business books. Republished with author’s permission by Alan Schmitt http://24HourHomeBusiness.com. Check out Commission Commando -> http://www.24HourHomeBusiness.com/?rd=xn7hmKgE

You can go here to help save the Polar Bear

If you want a free guide on short sales and avoiding foreclosure, visit my website at ShortSaleDignity.com. If you want the best home search for San Diego, visit AtHomeInSanDiego.com.

Fight Foreclosure – learn all of your option

Mortgage Interest Federal Tax Deduction in Jeopardy!

mortgage

The home mortgage interest deduction is one of the most important pieces of any tax reform. If you look at Republican frontrunner Herman Cain’s 9-9-9 plan for completely dumping the current tax code, the mortgage deduction will be eliminated. I found an interesting pros and cons on the houselogic website. You can go to houselogic and read the entire article.

I just wanted to present the pros and cons here. Although I am intrigued, I think maybe a homebuyer exemtion to the sales tax and a federal homebuying subsidy if planned properly could be an acceptable substitute within the context of any elimination plan.

Please read below and feel free to post any comments. Also…if you need help or information on how to handle your mortgage, please go to my website at ShortSaleDignity.com I also have an incredible advanced property search site at www.AtHomeInSanDiego.com  for San Diego County and I can refer you to the best Certified Residential Specialist in your area. Just call me 619.985.6528.

Now….see what you think on this issue and share your opinion. Thanks

How the deduction works

In general, any home owners who pay U.S. taxes and who itemize their taxes can deduct mortgage interest attributable to primary residence and second-home debt totaling $1 million, and interest paid on home equity debt of as much as $100,000.
Mortgage interest deduction threatened

In recent years, the mortgage interest deduction has come under attack. Among the suggestions for cutting it back to deal with the deficit:

  • Reduce the mortgage interest deduction for upper-income taxpayers—they’d only receive 28 cents on the dollar, even if they’re in a 33% or 35% tax bracket and can now deduct 33 or 35 cents on the dollar.
  • Reduce the $1 million cap by $100,000 a year.
  • Change the mortgage interest deduction to a 15% tax credit.

In the past, members of Congress have suggested other mechanisms for eliminating or limiting the mortgage interest deduction. None of those has ever gained traction.

Arguments against mortgage interest deduction

Arguments against the mortgage interest deduction center on who benefits and whether the government should support home ownership. They say:

  • It primarily helps the wealthy, since high-income taxpayers are more likely to itemize their deductions and to own homes. About 90% of taxpayers earning more than $100,000 itemize, while only 18% of those earning less than $50,000 follow suit, the Tax Foundation estimates.
  • Taxpayers who don’t itemize deductions get to use the “standard deduction.” They do that because it gives them a bigger tax break than itemizing to use the mortgage interest deduction.
  • Ending or reducing the mortgage interest deduction would create a deep source of money for reducing the budget deficit.
  • In the aftermath of the mortgage crisis, the U.S. needs to rethink its favored tax treatment of home ownership.

Arguments for mortgage interest deduction

Those who favor keeping the mortgage interest deduction say it helps middle-income families, who already pay nearly all U.S. income taxes. Plus, getting rid of the mortgage interest deduction would hurt home prices.

  • More than 60% of the families who claim the mortgage interest deduction have household incomes between $60,000 and $200,000, estimates the NATIONAL ASSOCIATION OF REALTORS®.
  • A disproportionate number of those high-income taxpayers live in areas where housing is especially expensive, such as California and New York. In high-cost housing markets, lowering the $1 million cap would add a tax burden on families who already must pay high prices for homes.
  • Home owners already pay 80% to 90% of the income tax in our country, and among those who claim the mortgage interest deduction, almost two-thirds are middle-income earners, says NAR Chief Economist Lawrence Yun. So home owners, who are the pillars of federal income tax revenue, would have to shoulder a bigger tax burden.
  • Home values could fall 15%, says Yun, as buyers discount the value of the mortgage interest deduction in their purchase offers.
  • It’s faulty to link the mortgage meltdown to the country’s support for home ownership. The meltdown is rooted in lax underwriting and faulty ratings by credit rating agencies of the securities backed by the mortgage, says Yun.

Protecting the deduction promotes housing. In supporting the mortgage interest deduction, you help ensure that tomorrow’s families can follow the same path to home ownership that so many of us have already traveled. So either keep the deduction or find an equivilant replacement