Continental Realty, Inc. Blog

Real Estate Fast Facts

2012-01-04T21:04:00.001-08:00

Fast Facts
Calif. median home price: November 2011: $280,960 (Source: C.A.R.)
Calif. highest median home price by region/county November 2011: Marin: $736,410 (Source: C.A.R.)
Calif. lowest median home price by region/county November 2011: Madera: $103,330 (Source: C.A.R.)

Calif. Pending Home Sales Index: November 2011: 109.8, an increase of 11 percent compared with the prior year.

Calif. Traditional Housing Affordability Index: Third quarter 2011: 52 percent (Source: C.A.R.)

Mortgage rates: Week ending 12/29/2011 30-yr. fixed: 3.95% fees/points: 0.7% 15-yr. fixed: 3.24 fees/points: 0.8% 1-yr. adjustable: 2.78% Fees/points: 0.6% (Source: Freddie Mac)
George Avram
Broker/Owner/Real Estate Auctioneer
Continental Realty Inc.
16 Crow Canyon Court Suite 100
San Ramon CA 94583
DRE# 01422589
925-548-5461
www.24by7bid.com

Serious Delinquencies Decline, Foreclosure Rates Steady

2012-01-04T14:56:00.000-08:00

Serious delinquencies are on the decline, while foreclosures have steadied at 5.5 percent, according to recent data from Foreclosure-Response.org, a joint venture of the Local Initiatives Support Corporation, the Urban Institute, and the Center for Housing Policy.

Among the 100 largest metropolitan areas, serious delinquencies – those 90 days or more past due or in foreclosure – declined from 10.4 percent to 9.3 percent from its December 2009 peak to June 2011.
The decline in serious delinquencies can be attributed to a decline in delinquent loans, according to Foreclosure-Response.org, which states delinquencies fell from 5.5 percent at the end of 2009 to 3.7 percent in mid-2011.
Areas experiencing higher rates of serious delinquencies include Florida, California and some areas of New Jersey, the Great Lakes region, and the South.

Areas with lower rates of serious delinquencies include Texas, the Central and Mountain Time zone regions, and some areas of the Pacific Northwest.
Seventeen of the top 25 metros ranked for serious delinquencies and four of the top five are located in Florida.
While serious delinquencies decline, foreclosures have “flat-lined,” according to Foreclosure-Response.org. The foreclosure rate has stayed at about 5.5 percent over the three quarters ending in June.
The two metros experiencing the greatest decline in foreclosures are in California – Riverside (1.9 percent) and Stockton (1.7 percent).
In contrast, metros in Florida, New York, and Illinois are seeing rising foreclosure rates. Tampa saw a 2.8 percent increase from December 2009 to June 2011, while Chicago saw a 2.3 percent increase, and New York saw a 2.1 percent increase.
Foreclosure-Response.org notes that these three states are judicial states, which “can create a significant backlog of foreclosures.”
“The foreclosure inventory that is building up is going to take an incredibly long time for lenders to clear,” said Urban Institute research associate Leah Hendey. “At the current pace of foreclosure sales, we are looking at a process that could take decades to complete.”
“It is critical that the status of these properties be resolved quickly if we want to stabilize communities and housing m

arkets,” Hendey continued. (Krista Franks - dsnews.com)

Fannie Mae: Economy Is Growing, But Momentum Will Wane

2011-12-28T21:04:00.000-08:00

While the euro-zone crisis continues to depress the economic outlook here stateside, the U.S. economy is growing and we will see “a decent close to a tough year,” according to a fourth-quarter report from Fannie Mae.

The fourth quarter will end with more than 2.5 percent economic growth, making it the best-performing quarter in 2011.
Fannie Mae also notes that 140,000 private sector jobs were added in November, while September and October employment data was revised upward.
The report also mentioned “slight improvements in housing.”
However, Fannie Mae predicts the positive momentum will slow as we move into the new year.
Second and third quarter data for wages, salaries, and real disposable income were revised downward.
Additionally, consumer spending rose, surpassing income growth, which caused the saving rate to fall from 4.8 percent to 3.8 percent in the third quarter. This is the lowest saving rate since the fourth quarter of 2007. (Krista Franks - dsnews.com)

2011-12-23T15:17:00.000-08:00

Yearly Home Values Decline Nearly $700B, But Rate of Decline Slows

2011-12-23T14:58:00.001-08:00

As 2011 comes to a close, Zillow anticipates home value declines for the year will total more than $681 billion. The rate of depreciation, however, is slowing.

The $681 billion decline this year is 35 percent less than last year’s $1.1 trillion drop in value.
Additionally, much of this year’s decline occurred during the first half of the year. Values declined $454 billion in the first six months of 2011, and by the end of the second half of the year, values are expected to wan another $227 billion.

“While homeowners suffered through another year of steep losses, the good news is that homes are losing value at a substantially slower pace as the market works its way towards the bottom,” said Zillow Chief Economist Stan Humphries.
“Compared to last year when we saw sharp declines following the expiration of the homebuyer tax credits, this year we saw some organic improvement in home values, in terms of a slowed depreciation rate which resulted in a smaller total value loss for the year,” Humphries said.
Nine of the 128 markets Zillow tracked experienced increasing home values over the year.
The largest gain was seen in the New Orleans area, where home values rose $3.5 billion. The Pittsburgh metropolitan statistical area (MSA) followed with a $2.7 billion upsurge.
In terms of dollar value, the greatest decline was seen in the Los Angeles MSA, where home values declined $75.5 billion.
New York ranked second with a $44.8 billion drop in value, and Chicago followed with a $41.7 billion decrease. (Krista Franks - dsnews.com)

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

Auction Handbook

2011-12-22T13:12:00.000-08:00

What is an auction?

Auctions have existed for more than 2,000 years and continue to grow in popularity every year. An auction occurs when consumers gather physically, or online, to buy an item by bidding against each other until the highest offered price is reached.

The history of auctions

Records handed down from ancient Greeks document auctions occurring as far back as 500 B.C. At this time, women were auctioned off as wives. In Rome, around the time of Christ, auctions were popular for family estates and the selling of war plunder. One of the most significant historical auctions occurred in 193 A.D. when the entire Roman Empire was put on the auction block by the Praetorian Guard.

American auctions date back to the Pilgrims’ arrival on America’s eastern shores in the 1600s and continued in popularity during colonization with the sale of crops, imports, livestock, tools, slaves and entire farms. Colonels during the American Civil War were the only people allowed to auction war plunder and today many auctioneers carry the title of “Colonel”.

Auction schools started in the early 1900s in the United States.

The Great Depression created many opportunities for auctioneers as their services were needed to liquidate the assets of individuals and businesses hurt by the economy.

As time has gone by, auctions have become more and more popular as a means to sell goods and assets. Technology

has changed the face of auctions from the days where auctioneers would stand before an audience and call an auction, to today’s auctions where computers, cell phones,and fax machines are utilized daily.

The auction option

Whether you’re selling sentimental prized possessions or looking to buy one-of-a-kind treasures, an auction is just the place to make things happen.

Contrary to what some might view as complicated and time consuming, a fast-paced auction is one of the most efficient ways of converting your property or assets into immediate cash. With the combination of pre-sale marketing and the auctioneer’s attention-getting chant, you could have enthusiastic, attentive buyers aggressively competing to purchase your property.

If you’ve never attended an auction, you’re missing out on a great time!

Auctions are exciting and most importantly, auctions are fun! Auctions exhilarate and captivate everyone, from the opening call of “Would you bid?” to the sound of the gavel slamming down and the ringing of “Sold!”.

Everywhere you turn at an auction, there’s a thrill in the air as potential buyers find something they want and set out to successfully bid against others who want the same thing. Auctions bring out the competitive nature in all of us!

Industry overview

Today’s auction industry is broad and diverse and ranges from art and antiques, to real estate and automobile auctions. Professional auctioneers sell on average a quarter-trillion dollars in goods and assets every year in the United States.

What types of auctions are there?

Agricultural machinery & equipment

Art, antiques & collectibles

Automobiles

Benefit

Commercial and industrial machinery & equipment

Commercial and industrial real estate

Estates

Intellectual property

Land and agricultural real estate

Livestock

Personal property

Residential real estate

Everywhere you turn at an auction, there’s a thrill in the air as potential buyers find something they want and set out to successfully bid against others who want the same thing.

Auction Answers

The Complete Idiot’s Guide to Live Auctions

Excerpts from The Complete Idiot’s Guide to Live Auctions, a publication authored by the National Auctioneers Association.

Absentee Bid

A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on an item prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or their representative. The particular rules and procedures of absentee bids are unique to each auction company.

Absolute Auction (Auction Without Reserve)

An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount.

“As Is”

Selling the property without warranties as to the condition and/ or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as “As Is, Where Is”.

Auction Listing Agreement

A contract executed by the auctioneer and the seller which authorizes the auctioneer to conduct the auction and sets out the terms of the agreement and the rights and responsibilities of each party.

Auction With Reserve

(Subject to Seller Confirmation)

An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.

Ballroom Auction

An auction of one or more properties conducted in a meeting room facility.

Bidder's Choice

A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. After the high bidder's selection, the property is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a property, which is then deleted from the group and so on, until all properties are sold.

Bidder Package

The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction.

Buyer’s Premium

A percentage added on to the high bid. Buyer premiums are used by many auction houses as a way of spreading the cost of the event with the people who benefit most from the opportunity to purchase; the buyer. It is an amount added to the high bid in addition to the high bid and payable by the buyer.

Caveat Emptor

Latin term meaning “let the buyer beware.” A legal maxim stating that the buyer takes the risk regarding quality or condition of the property purchased, unless protected by warranty.

Minimum Bid Auction

An auction in which the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the auctions.

Opening Bid

The lowest acceptable amount at which the bidding must commence.

Terms and Conditions

“Terms and Conditions” are the printed rules and format ofthe auction. Terms and conditions outline the type of auction, the commission structure of auction, and any other pertinent information. The terms of each auction vary and differ between auction companies.

Ringman

The “ringman” is a member of the auction team who works with bidders throughout the auction. A “ringman” is generally recognized as the person in the crowd yelling and flashing hand signals to the auctioneer when a bid has been made. This individual works the auction “ring”, hence the name “ringman”.

Withdrawal

Failure to reach the reserve price or insufficient bidding.

There’s even more curiosity among bidders when it comes to the prices obtained at auction. Auctions are a social event and while people attend to find great deals, many walk away making new friends.

Auction tips

There's an excitement about auctions that makes it a special event that draws people again

and again. People attend out of curiosity about what unique or interesting items are for sale. There’s

even more curiosity among bidders when it comes to the prices obtained at auction. Auctions are

a social event and while people attend to find great deals, many walk away making new friends.

Auctions are also a great educational opportunity to learn about art, autos, furniture, and every type

of property sold, by talking to other attendees, sellers and auctioneers. You learn about values,

construction of items, collection practices and much more when you attend an auction.

Before you bid...

t Understand the basic types of auctions: absolute, reserve, and subject to seller confirmation.

t Arrive early and register for the auction. Certain auctions (i.e. real estate) may require a cashier’s check or other payment in advance of the auction to qualify you to bid in the auction.

t Always read the Terms and Conditions sheet handed to you at registration because you are bound by them if you bid. Also inspect items you are interested in buying because when you buy at auction you typically buy “as is” which means if you bid and win, you now own and cannot return the item.

t Bid in sync with the chant. You should be listening closely and following the increasing bids. Remember: Filler words in the chant are used to remind buyers of the last bid number and give buyers time to consider their next bid

Hiring an auctioneer...

If you are considering an auction for your personal or business assets, consider the following tips.

t Whether it be real estate, art, or automobiles, select an auctioneer with experience in your particular type of sale.

t Ask for references and attend one of their auctions and learn about auctions firsthand.

t Take an active role in the marketing and advertising of your assets.

t Always consider hiring an NAA auctioneer. NAA member auctioneers are at the top of their field in the auction business.

Members are professionals well versed in the psychology of selling. Their education, experience and networking capabilities stimulate competition among bidders, securing you the highest price per sale.

The art of auctioneering

Contrary to popular belief, the key to being a successful auctioneer is not the speed of their chant, but rather their ability to market and promote their auctions. Auctioneers are entrepreneurs who excel in marketing and advertising.

The primary role of an auctioneer is to develop a marketing campaign to promote the sale of their client’s assets and attract bidders to their auction. Many auctioneers are also appraisers and experts in their field of sales (i.e. art, antiques, etc.).

As appraisers, auctioneers help their clients evaluate the value of their assets.

(NAA - Auction Handbook)

If you are looking for a professional Real Estate Auction Company that specializes in marketing and promoting properties worldwide and is also using the latest cutting edge technology in online and live auctions, contact:

George Avram

Broker/Real Estate Auctioneer

Continental Realty, Inc. Dba: 24by7bid Realty

16 Crow Canyon Court Suite 100

San Ramon CA 94583

925-548-5461

GeorgeA@24by7bid.com

www.24by7bid.com

DRE# 01422589

California consumer sentiment slides

2011-12-22T11:40:00.000-08:00

The California Composite Index of Consumer Confidence declined approximately 10 points to 78.6 in the fourth quarter of 2011 compared with the third quarter’s revised reading of 88.2, according to the A. Gary Anderson Center for Economic Research at Chapman University. An index level below 100 reflects a higher percentage of pessimistic consumers versus those who are optimistic. In contrast, the survey of consumer confidence at the national level conducted by the University of Michigan showed a reading of 64.1 in the month of November increasing from the August reading of 55.7. The California Composite Index is generated based on three indices: Consumers’ outlook on current and future economic conditions, and an index measuring consumers’ spending plan. All three components of the composite index declined over the last three months.
Continued high unemployment rate in California, currently at 11.7 percent, and volatile stock market may be the main factors explaining why the consumer assessment of the current economic conditions has deteriorated so sharply. This index declined to a reading of 60.8 in November of 2011 from 67.1 in August of 2011. The index measuring future economic conditions also decreased to a reading of 95.8 in November from a reading of 106.8 in August 2011. Moreover, the index measuring consumers’ planned spending on big-ticket items decreased significantly from the August reading of 93.4. The reading of 79.8 suggests consumers’ spending in the early part of 2012 may decline sharply from the current strong pace reported by the retailers. (C.A.R. Newsline)

2011-12-21T22:46:00.000-08:00

Existing-Home Sales Rise in November

2011-12-21T22:19:00.000-08:00

Existing-home sales rose again last month, according to data released Wednesday by the National Association of Realtors (NAR).

That assessment, however, is coming off of lower sales numbers than previously thought, reflecting revisions to NAR’s data going back to 2007. The trade group has adjusted sales and inventory figures for the last four years downward by 14.3 percent, signaling the housing crisis has run even deeper that earlier assumptions.
NAR’s latest monthly report shows sales of previously owned homes increased 4.0 percent to an annual rate of 4.42 million in November from 4.25 million in October, and are 12.2 percent above the 3.94 million-unit pace in November 2010.
Total housing inventory at the end of November fell 5.8 percent to 2.58 million existing homes available for sale, which represents a 7.0-month supply at the current sales pace, down from a 7.7-month supply in October.
The national median existing-home price was $164,200 in November, down 3.5 percent from a year ago.
Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 29 percent of November’s sales (19 percent were foreclosures and 10 percent were short sales), compared with 28 percent in October and 33 percent in November 2010.

Although re-benchmarking resulted in lower adjustments to several years of home sales data, NAR says the month-to-month characterization of market conditions did not change.
Lawrence Yun, NAR’s chief economist, says November’s report indicates more people are taking advantage of the buyer’s market.
“Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010,” Yun said. “We’ve seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market for buyers with long-term plans.”
NAR also stressed that there were no revisions to home prices or month’s supply.
“From a consumer’s perspective, only the local market information matters and there are no changes to local multiple listing service (MLS) data or local supply-and-demand balance, or to local home prices,” Yun said.
A divergence developed over time between sales reported by MLSs and sales determined by a U.S. Census benchmark, with the variance beginning in 2007, NAR explained. The trade group cited growth in MLS coverage areas from which sales data is collected and geographic population shifts as reasons for the divergence.
“It appears that about half of the revisions result solely from a decline in for-sale-by-owners (FSBOs), with more sellers turning to Realtors to market their homes when the market softened,” according to Yun. “The FSBO market was overwhelmed during the housing downturn, and since most FSBOs are not reported in MLSs, national estimates of existing-home sales began to diverge based on previous assumptions.”
NAR’s says its 2010 benchmark shows there were 4,190,000 existing-home sales last year, rather than the 4,908,000 sales previously projected.
Revisions covering 2007 through 2010 are expected to have a “minor impact” on future revisions to Gross Domestic Product (GDP), according to NAR. (Carrie Bay - dsnews.com)

GSEs Held $2 Trillion in Subprime Loans at Height of Financial Crisis

2011-12-20T21:26:00.001-08:00

At the height of the financial crisis in 2008, Fannie Mae and Freddie Mac held $2 trillion in high-risk subprime loans, amounting to 42 percent of their single-family portfolios, according to Edward Pinto of the American Enterprise Institute.
Pinto, who served as chief credit officer for Fannie Mae until the late 1980s, arrived at this number by relying on data from the Securities and Exchange Commission (SEC),

which filed a lawsuit against six former GSE executives for securities fraud.
According to the SEC, the GSEs released several statements undervaluing the amount of subprime loans in their portfolios.
In a 2010 report, Pinto attributed the industry’s increase in subprime lending to government policies he said “forced a systematic industry-wide loosening of underwriting standards in an effort to promote affordable housing.”
“These policies were legislated by Congress, promoted by HUD and other regulators responsible for their enforcement, and broadly adopted by Fannie Mae and Freddie Mac (the GSEs) and the much of the rest mortgage finance industry by the early 2000s,” Pinto wrote.
Fannie Mae announced a $2 trillion commitment to affordable housing in 2003, according to Pinto.
HUD is reported to have been a proponent of subprime lending. Pinto quoted HUD as saying “The line between what today is considered a subprime loan versus a prime loan will likely deteriorate, making expansion by the GSEs look more like an increase in the prime market.”(Krista Franks - dsnews.com)

Required Disclosures When Selling Real Estate

2011-12-20T21:22:00.001-08:00

What you need to disclose to potential home buyers about your property.

When selling your home, you may be obligated to disclose problems that could affect the property's value or desirability. In most states, it is illegal to fraudulently conceal major physical defects in your property such as a basement that floods in heavy rains. And many states now require sellers to take a proactive role by making written disclosures about the condition of the property.

What You Must Disclose

Generally, you are responsible for disclosing only information within your personal knowledge. In other words, you don't usually need to hire inspectors to turn up problems you never had an inkling existed.
Some states require more. However, some states' laws identify certain problems that are your responsibility to search for, whether you see signs of the problem or not. In these cases, or where you could have seen a particular defect but turned a blind eye, you could ultimately end up in court, compensating the buyer for the costs of your failure to speak up sooner.

California's Stringent Disclosure Requirements

California sellers must fill out and give the buyers a disclosure form listing a broad range of defects -- such as a leaky roof, deaths that occurred within three years on the property, neighborhood nuisances such as a dog that barks every night, and more. In addition, California sellers must disclose potential hazards from floods, earthquakes, fires, environmental hazards, and other problems, in a Natural Hazard Disclosure Statement. California sellers must also alert buyers to the availability of a database maintained by law enforcement authorities on the location of registered sex offenders.

Consider getting an inspection. While it's not usually required, some sellers hire a property inspector to look things over before they put the house on the market. (See Home Inspections: A Crucial Step.) The results will help you determine what items or house features need repair or replacement and will assist you with preparing any required disclosures. An inspection report is also useful in pricing your house and negotiating with prospective buyers.
Err on the side of disclosure. If you have even the faintest question about whether or not to disclose something to potential buyers, avoid the potential for liability and tell all. Full disclosure of any property defects will help increase the buyer's confidence that you're dealing fairly. And it will protect you from legal problems later, such as buyers who want out of the deal or who claim damages suffered because you carelessly or intentionally withheld information about your property.
And remember, just because you disclose a problem doesn't mean you must repair or correct it. The buyers have an interest in getting the deal closed as well, and often overlook minor issues. Or, the disclosed item can become a point of negotiation between you and your buyer.
Disclose lead-based paint and hazards. If you are selling a house built before 1978, you must comply with a federal law called the Residential Lead-Based Paint Hazard Reduction Act of 1992 (U.S. Code § 4852d), also known as Title X. You must:

disclose all known lead-based paint and hazards in the house
give buyers a pamphlet prepared by the U.S. Environmental Protection Agency (EPA) called Protect Your Family from Lead in Your Home
include certain warning language in the contract as well as signed statements from all parties verifying that all requirements were completed
keep signed acknowledgements for three years as proof of compliance, and
give buyers a ten-day opportunity to test the house for lead.

If you fail to comply with Title X requirements, the buyer can sue you for triple the amount of damages actually suffered. For more information on lead hazards, prevention, and disclosures, contact the National Lead Information Center -- by phone at 800-424-LEAD, or check its website at www.epa.gov/lead.

How to Find Your Area's Required Disclosures

Check with your real estate agent or attorney or your state department of real estate for disclosures required in your state. Also, check with your city planning department for information on local ordinances and disclosures that affect your sale. Finally, be aware that real estate agents are increasingly requiring that sellers complete disclosure forms, regardless of whether or not it's legally required in their state.

How You Must Disclose

Most states' laws mandate that disclosures be on special forms the seller must sign and date. Be sure the buyer acknowledges receipt of the disclosures by signing and dating the forms as well. If your state doesn't require a specific disclosure form, be sure the buyer otherwise affirms receipt of your disclosures, in writing.
To learn more about required disclosures, see Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart (Nolo).

Fitch: CMBS Delinquency Declines Hit Month Four

2011-12-19T11:50:00.000-08:00

November marked the fourth straight month that Fitch Ratings has recorded a decline in the delinquency rate for loans held in U.S. commercial-backed mortgage securities (CMBS).

CMBS late-pays fell by 15 basis points last month to 8.41 percent, down from 8.56 percent in October. New delinquencies totaling $1.8 billion were offset by $2.2 billion of resolutions, Fitch reports.
Behind the positive numbers, though, the New York-based ratings agency says the performance of CMBS collateralized by office properties remain an area of concern heading into 2012. More than half of all new delinquencies in November consisted of office loans.
Of the four most prevalent CMBS property types (office, retail, multifamily, and hotel), loans backed by office properties saw the largest percentage gain in delinquencies since October, as well as over the past twelve months.
Office late-pays were up 4.3 percent (27 bps) month-over-month, and since November 2010 they have increased 16.5 percent (93 bps), settling in at a 6.56 percent delinquency rate as of the end of November.
Office properties now contribute 210 bps ($8.4 billion) to Fitch’s CMBS delinquency index. The agency has said for some time now that office properties with rolling rents would be responsible for an increasing number of new delinquencies.

Fitch says delinquencies for loans backed by office properties have closely mirrored broader trends seen across the sector. For example, several weak office markets contribute an outsized share toward the overall office delinquency figure, including Atlanta, Phoenix, Dallas, Sacramento, Detroit, and Las Vegas.
Each of these markets experienced third-quarter vacancy rates at or in excess of 20 percent, with three markets – Phoenix, Detroit, and Las Vegas – reporting rates over 25 percent, according to data provided by REIS.
However, loans backed by central business district (CBD) office properties from the strongest office markets are virtually absent from Fitch’s index. For instance, the CBDs of D.C., New York City, San Francisco, and Boston collectively contribute just one office loan to the index – a New York City office property in foreclosure.
In contrast to the increase for office – and modest upticks for hotel and industrial – multifamily and retail delinquency rates declined last month.
Multifamily delinquencies dropped 28 basis points to 15.71 percent, while retail shed 20 basis points to hit 6.63 percent.
Past-dues among hotel properties rose 12 basis points, posting a delinquency rate of 12.66 percent in November, while industrial delinquencies edged up 4 basis points to 10.34 percent.
Fitch Ratings’ delinquency index includes 2,579 loans totaling $33.8 billion that are currently at least 60 days delinquent, in foreclosure, REO, or considered non-performing matured. The total delinquency percentage is calculated from the outstanding CMBS populated rated by Fitch, consisting of approximately 33,500 loans comprising $402.3 billion.
The index excludes rated loans that are 30 to 59 days delinquent, which totaled $2.1 billion in November, compared with $1.5 billion in October.
Fitch Ratings maintains a ‘stable outlook’ on approximately 86 percent of its U.S. CMBS portfolio. Most of the remaining bonds are either considered distressed (8 percent) or have a ‘negative outlook (6 percent). (Carrie Bay -dsnews.com)

Fannie Mae: Three Servicers Improve Foreclosure Prevention Efforts

2011-12-17T12:16:00.000-08:00

Fannie Mae released the results of the Servicer Total Achievement Rewards (STAR) Program Thursday, announcing improvements by JPMorgan Chase, PHH Mortgage, and U.S. Bank. All three banks improved their foreclosure alternative practices.
“The STAR program evaluates servicers’ capabilities and results and holds them accountable for preventing foreclosures and protecting the interests of American taxpayers,” said Tara Clayton, VP of servicer review and measurement at Fannie Mae.

“STAR is making a difference when it comes to increasing servicers’ focus on areas of critical importance to homeowners, Fannie Mae, and the market,” Clayton stated.
STAR breaks servicers into three categories based on the number of Fannie Mae loans they service.
In the first peer group of 11 servicers, four are expected to receive a three STAR rating – meaning they are at or above median performance – in 2011. Those four include CitiMortgage, Everbank, GMAC Mortgage, and Wells Fargo.
In Peer Group Two, six of nine servicers are expected to receive a three STAR rating at the end of the year, including Aurora Bank, FSB, Central Mortgage Company, Fifth Third Bank, The Huntington National Bank, and Regions Bank.
In Peer Group Three, nine of 13 servicers are expected to be at or above median performance level.
The nine banks include American Home Mortgage Servicing, Arvest Mortgage Company, Associated Bank, Capital One, Colonial Savings, Doral Bank, Manufacturers and Traders Trust, Nationwide Advantage Mortgage, and Navy Federal Credit Union. (Krista franks - dsnews.com)

Real Estate Fast Facts

2011-12-15T08:39:00.001-08:00

Fast Facts
Calif. median home price: October 2011: $278,060 (Source: C.A.R.)
Calif. highest median home price by region/county October 2011: Marin: $781,250 (Source: C.A.R.)
Calif. lowest median home price by region/county October 2011: Lake County: $96,500 (Source: C.A.R.)

Calif. Pending Home Sales Index: October 2011: 122., an increase of 3.1 percent compared with a prior year.

Calif. Traditional Housing Affordability Index: Third quarter 2011: 52 percent (Source: C.A.R.)

Mortgage rates: Week ending 12/8/2011 30-yr. fixed: 3.99% fees/points: 0.7% 15-yr. fixed: 3.27 fees/points: 0.8% 1-yr. adjustable: 2.80% Fees/points: 0.6% (Source: Freddie Mac)

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

Gorgeous San Jose property for sale

2011-12-13T10:35:00.000-08:00

2365 STRATFORD DRIVE, San Jose 95124

Completely remodeled 4 bedroom, 2 bath home with high-end finishes! Two brand new bathrooms with elegant design; Fresh designer paint; New kitchen with granite counter, tile backsplash, and new appliances; Nature stone floors; beautiful solid wood front door with side lite, almost like a NEW HOME! Great curb appeal, dual pane windows, hardwood floors, newer roof, fireplace, Great Schools. Easy access to 85 and 17.

Make an offer on this property at: 24by7bid.com
Presented by:

Karen Lin

REALTOR

Continental Realty, Inc.

DRE# 01892718

650-740-8465

karenxdlin@yahoo.com

Prices Decline Slightly But Show Signs of Stabilizing

2011-12-13T10:30:00.000-08:00

While home values are continuing to decline, they are beginning to stabilize as the market nears the bottom, according to the Zillow Real Estate Market Report, released Tuesday.

Since their peak in May 2007, prices have fallen 23.7 percent, according to Zillow’s data.
On a yearly basis, prices fell 5.1 percent in October, arriving at $147,000.
However, on a monthly basis, prices fell just 0.3 percent, demonstrating a deceleration in decline.
“As expected, home values continue to fall in the back half of this year due to an abundance of housing supply relative to demand,” said Dr. Stan Humphries, Zillow’s chief economist. “Potential buyers remain on the sidelines or doubled up in other households, despite record high housing affordability and historically low mortgage rates.”

Zillow, based in Washington, measures 156 metropolitan statistical areas (MSAs) each month. In October, prices declined in 95 MSAs and rose in 39.
Prices in the remaining 22 MSAs remained relatively unchanged over the month.
Some of the harder hit areas are starting to a reprieve from their sharp declines in home values.
Miami’s prices remained essentially unchanged for the month, and hard-hit areas of Phoenix and Detroit saw slight gains – 0.2 percent in Phoenix and 1 percent in Detroit.
On a yearly basis, 10 of the 156 MSAs experienced rising prices.
In addition to stabilizing prices, Zillow reported another positive sign for the market in its most recent report. The foreclosure liquidation rate fell for in October to 8.1 out of every 10,000 homes.
This contrasts the record high reached one year ago – 10.7 of every 10,000 homes.
While Zillow reports some slight positive signs for the market, Humphries says the “crisis of consumer confidence along with high rates of negative equity, are the biggest factors hindering a housing recover.”
“However, I’m encouraged by the positive, albeit slow, progress in working down the unemployment rate, which should help to improve consumers’ appetites for buying homes,” he continues. (Krista Franks - dsnews.com)

Top defects to look for when buying an older home

2011-12-11T21:12:00.000-08:00

Q: Buying a house worries me. I don't know what I should be looking out for! I know that the older the house, the more likely it is that the wiring, plumbing and roof might be out of date, and the paint could even have lead in it if it's old enough. I have been looking at houses and like a handful of them, but obviously don't want to pay for an inspector for all of them. Help!
A: The fact is, you're simply not going to be able to rule a home all the way in -- or out -- without paying for an inspection. Your best bet is to generally select the home on which you want to place an offer based on its location, basic specifications and how well they fit with your wants and needs, and the price you are able to negotiate for it.
You simply have to go into a home purchase with the understanding that it will not be a done deal until you do pay for a home inspection, and pest and roof inspections, too, in most cases.
Generally, home buyers don't have a laundry list of homes they feel are interchangeable with each other; they tend to have a strong preference for one over the others, or a ranked list of homes, based on things like location, aesthetics, price and the like.

And the fact is that the average plumbing, electrical or roof repair or upgrade might not even be a deal-breaker, depending on how strong your preference is for one home over the others.
If the home costs $250,000 and you love it, would the fact that it needs a $5,000 roof deter you from buying it? Most buyers would say no -- and on today's market, most buyers would simply try to negotiate with the seller to make the repair or get an upgrade credit, or chip in some or all of the needed repair.
With that said, there are some basic things you can and should watch out for with respect to the areas of concern you mentioned. First things first: disclosures.
Your agent can find out whether the seller's disclosures are already available for the properties in which you're interested.
Many times, smart, honest sellers will flat out disclose what plumbing, electrical and roofing kinks and quirks a home might have; if they mention lots of little repairs they've had to do over the time they've owned the place to a particular system (e.g., multiple times they've had to have the sewage line snaked, etc.) that may indicate that particular system (a) might need some work and (b) definitely needs a closer, professional inspection.
In terms of things you can see with your own two, untrained eyes, if you're looking at an older home and have concerns about its electrical system, look to see:

whether there are three-pronged or two-pronged plugs throughout (three-pronged plugs suggest, but do not guarantee, that the home might have modern grounding, which can reduce the risk of shock, and some of your appliances and electronics might need a three-pronged outlet to plug into);
look for those little reset buttons on the electrical outlets in bathrooms, kitchens, laundry rooms and garages (they indicate modern safety upgrades known as ground-fault circuit interrupters (GFCI), which minimize shock hazards around water;
watch for fuses vs. breakers (a fuse system is an older, almost obsolete method of electricity management and may indicate that an electrical upgrade will be needed in the home's near-term future); and
scorch marks on and near outlets (not good).

Water stains on walls and ceilings may indicate roof, plumbing or drainage issues; similarly, looking under sinks is a quick way to look for water damage and staining from plumbing leaks.
Actually, many roofs that require repair just look like it from the exterior, when viewed with the naked eye; if it seems rippled or raggedy or worn, it might require some repairs or upgrades in the near future.
But here's the thing: Even if you do see any of these items, you should not necessarily construe them as a deal-breaker. Rather, you should take any or all of them as signs that you should ask your property inspector to pay special attention, or make sure you obtain a specialty inspection or repair bid from an expert like an electrician or roofer.
And by the same token, a home can have none of these visible signs of plumbing, electrical or roofing issues and still have major, deal-breaker-level condition problems.
I once represented a buyer who got into contract on a home that had been gutted and remodeled after a fire -- new electrical, new plumbing, new roof -- all on top of a completely rotten foundation that received six-figure repair estimates from multiple contractors.
When you find a property that works for you and get into contract on it, don't cut corners or costs when it comes to having the home thoroughly and professionally inspected.(Inman News - Tara Nichiolle Nelson)

The quest for quality in real estate services

2011-12-11T21:00:00.000-08:00

Real estate agents in our industry spend millions of dollars as a group annually to become a Realtor and to stay a member of the Realtor family. As someone who cut their teeth working with some of the most highly trusted brands in the world like Fisher-Price, Sesame Street and others, I have a few observations of the real estate industry's branding efforts.
First, when I ask most Realtors what makes them different than non-Realtors they say, "the code of ethics." While I appreciate the fact that those who live to the letter of the National Association of Realtors Code of Ethics may treat their customers differently, I would beg to differ that the code is a strong brand differentiator.

Consumers expect every licensed real estate agent to live by a standard of service that includes integrity, honesty and above-board practices. Wouldn't you lose your license if you demonstrated unethical or even unprofessional business methods? I don't believe the code of ethics "cuts it" as a key brand differentiator.
Now let's look at some of the strongest brands in America today, like Apple, Trader Joe's, Ritz-Carlton, Nordstrom's and others. What do they have in common? Do they simply offer the promise that "we won't rip you off"? I would say no. They promise a lot more than that.
Service consistency
Each of these high-quality brands delivers a consistent level of service. When you walk into an Apple Store or purchase equipment you know you will enter an environment that is fun and full of positive energy.
You know you will work with someone who is knowledgeable and respectful regardless of your level of product knowledge or technology expertise. You will not need to leave the environment until your question has been answered or you have found the product that works best for you.
Have you ever walked out of a Nordstrom's store feeling you didn't get the service you deserved? Has Trader Joe's disappointed you without providing a great sample from a warm and friendly "crew" member?
Did you ever walk out of an Apple store with buyer's remorse because you didn't feel the product you purchased was up to snuff or the sales rep wasn't completely helpful or respectful of your time?
This is what great brands do. They set an expectation of service quality and then deliver on it every time you interface with the brand.
Can the real estate industry claim this level of service consistency? Do we set expectations with the consumer and then meet it with every Realtor experience?
Do we consistently monitor service satisfaction levels and then eliminate those who do not provide the service quality we know consumers deserve?
I would say definitely not. The consumer experience in real estate is inconsistent at best. In my own experience I have satisfying customer service experiences and absolute disasters! I'm sure I'm not alone on that.
We wonder why our profession doesn't have higher satisfaction ratings with consumers, yet we do nothing to ensure a consistent service experience.
For the most part, it is highly unlikely that a consumer will have the same service experience with two agents in the same brokerage, not to mention with agents across the country.
How can we expect to build a meaningful brand that is not based on accountability to a standard of service quality like every other strong brand in America delivers?
Measurement of service quality
The industry uses the excuse that agents are all independent contractors, thus we cannot require a certain level of service quality. I would beg to differ with that cop-out, too.
Have you ever purchased carpeting or other types of contracted services from Lowe's or Home Depot? They use a network of independent contractors to provide services under their brand. Those contractors are carefully vetted and chosen.
After they complete a project at your home you receive a feedback form asking you to rate the experience of those contractors at your home. If a contractor gets known for being too messy, disrespectful of the homeowner, or doesn't show up on time, guess that happens to that contractor? The contractor gets fired, of course!
The same thing that happens to employees at Trader Joe's, Enterprise Rent-a-Car and other great brands known for their service quality.
If we're going to change this industry we're going to have to put real service quality standards in place, and when an agent doesn't meet the standards we need to clear them out! The industry also needs to promote what the Realtor brand stands for and show a genuine interest and commitment to improving the customer experience with Realtors.
Why are we having such a hard time adopting the concept of consumer feedback and ratings transparency? Every other industry in America -- even doctors and lawyers -- now participate in consumer feedback programs, yet somehow the purchase of a consumer's largest asset continues to be unregulated.
I'm amazed there haven't been more lawsuits given the gravity of the purchase, coupled with such poorly managed service delivery.
So what can be done to change this weakness in the Realtor brand?
Outline service quality standards
As the stewards of the Realtor brand, NAR can outline service quality standards based on input from consumers about what a satisfying consumer experience looks like. Service quality standards should not be outlined solely by agents or brokers.
The standards need to conduct the highest level of service quality, not just a compliance-driven mindset that so many industries use.
For example, I was asked to complete a satisfaction survey in a hospital after my mother had spent several weeks there.
The questions were ridiculous and had nothing to do with service quality. The questions at the hospital centered around things like "Were you told about your insurance requirements?" rather than about things like "Did your family member receive the respectful care they expected?"
These questions were actually insulting because they did not give me a chance to provide the feedback I wanted to give.
I wanted to tell them about the nurse who went totally above and beyond the call of duty and provided us with an amazing experience. I wanted to tell them about the woman in the bed next to my mother who called for over an hour for someone to help her out of bed so she could urinate. Nobody ever came, and sadly, she wet the bed.
Our industry at some level has adopted somewhat of a "blind eye" to what consumers are looking for. Of course, there are many amazing agents out there who go well beyond the call of duty.
Many times, they are just amazing people who have taken it upon themselves to deliver an amazing customer experience. There are no standards of service that have required or even encouraged them to achieve this level of service quality.
The industry needs to define service quality standards by what it takes to delight consumers, not just by whether the disclosure documents were completed properly or the inspection was completed on time.
Adhering to service quality standards
We have an industry that is based on membership. NAR is incentivized to include even subpar agents in its ranks so that it has the political power on Capitol Hill with the largest trade association in America.
Local associations and multiple listing services need the membership revenue to support the programs they would like to deliver.
Brokerages need to maintain their lowest producers so they can continue to receive technology fees and marketing fees.
Real estate industry is an industry with an extremely low cost of entry. Maybe it's time to change that and think about adhering to quality standards and see what happens?
I have heard from many top-producing agents who would be happy to pay more for their monthly subscriptions and fees if it would help eliminate the agents who are unprepared and deliver poor service to their clients.
Maybe it's time to overtly demonstrate to consumers and the U.S. government that we are serious about stepping up the levels of professionalism and have outlined strong recommendations to brokers and associations about putting programs to place to improve the customer experience.
Maybe as an industry we could actually put a meaningful service quality monitoring program in place that is run by the industry and not by third parties.
Zillow, for example, now includes 70,000 consumer ratings on its site in just a few months after it launched them. Consumers are desperate for this information, and because we are not providing it to them they are, yet again, going to third parties for answers.
It's time for real estate to wake up and realize that the needs of consumers really do drive the industry. Just because it's not convenient for us to provide meaningful methods for managing service quality doesn't mean they don't want it.
They will find it somehow, some way. I would really like the solution to come from the real estate industry - before it's too late.
Marilyn Wilson is a part of the WAV Group, a real estate research and consulting firm. (Inman News)

Industry Home Price Reports Show Further Declines

2011-12-09T14:25:00.000-08:00

Home price indexes from CoreLogic and Lender Processing Services (LPS) both recorded continuing declines through the month of October.

CoreLogic’s study shows national home prices dropped 1.3 percent between September and October, marking the third straight monthly decline.
The company puts October home prices 3.9 percent below their year-ago levels. That follows a decline of 3.8 percent in September 2011 compared to September 2010.
“Home prices continue to decline in response to the weak demand for housing,” commented Mark Fleming,

CoreLogic’s chief economist. “While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance.”
Fleming says looking forward, CoreLogic’s forecasts indicate flat growth through 2013 for residential home prices.
LPS says its preliminary data indicates the same downward trajectory for home prices, with a 1.1 percent month-over-month decline for October, coming on the heels of a 1.2 percent drop in September.
Kyle Lundstedt, managing director for LPS Applied Analytics, says the latest data is consistent with seasonal patterns occurring since 2009.
“Each year, prices have risen in the spring, but revert in autumn to a downward trend that has not only erased the gains, but has led to an average 3.7 percent annual drop in prices to date,” Lundstedt explained.
LPS’ latest index of average national home prices continues the downward trend begun after the market peak in June 2006, when the company says the total value of U.S. housing inventory stood at $10.6 trillion.
The value has declined 30.2 percent since that peak to $7.56 trillion.

Treasury to Withhold Foreclosure Prevention Incentives from Two

2011-12-09T14:23:00.001-08:00

The U.S. Treasury said Wednesday that it will continue to withhold incentives from JPMorgan Chase and Bank of America for modifications, short sales, and deeds-in-lieu completed through government programs.

JPMorgan is the only servicer participating in Treasury’s Making Home Affordable program that was determined to need “substantial improvement” in complying with program guidelines during the third quarter.

The company – now said to be the largest U.S. bank by assets – was also in need of “substantial improvement” during the first and second quarters of this year. JPMorgan’s servicer incentives have been withheld since the first assessment was made at the conclusion of Q1.
Treasury called out JPMorgan in its report for the servicer’s “lack of progress in implementing previously identified improvements.”
Bank of America was given a grade of needing “substantial improvement” during the first and second quarters, but moved up a notch on the assessment scorecard to needing only “moderate improvement” for the third quarter.
Still, Treasury says it “will continue to withhold servicer incentives from Bank of America, NA, until it makes additional improvements.”

Treasury’s quarterly compliance assessments cover the 10 largest servicers participating in the Making Home Affordable program.
Six other servicers were also found to need “moderate improvement” during the third quarter: American Home Mortgage Servicing, CitiMortgage, GMAC Mortgage, Litton Loan Servicing, Ocwen, and Wells Fargo. Incentives are not being withheld from any of these program participants.
Two servicers met the established benchmarks for program compliance, indicating that they require just “minor improvement” on the areas reviewed for the third quarter: OneWest Bank and Select Portfolio Servicing.
Treasury says when Making Home Affordable began, “most servicers did not have the staff, procedures, or systems in place to respond to the volume of homeowners struggling to pay their mortgages, or to respond to the housing crisis generally.”
Officials note that participating companies have taken specific actions to better their servicing processes. “While the servicers have improved their performance, they still have more progress to make,” according to Treasury.
Treasury says its decision to make individual servicer assessments public is intended to push servicers to correct identified shortfalls.
Treasury notes that participation in Making Home Affordable – including the Home Affordable Modification Program (HAMP) and the Home Affordable Foreclosure Alternative (HAFA) program– is voluntary.
As such, Treasury does not have the authority to impose fines or penalties, but can take certain remedial actions for non-compliance such as withholding incentive payments. (Carrie Bay - dsnews.com)

California and Nevada AGs Announce Mortgage Investigation Alliance

2011-12-07T12:08:00.000-08:00

Attorneys General Kamala Harris of California and Catherine Cortez Masto of Nevada have entered into a joint investigation alliance targeting both mortgage servicers and perpetrators of mortgage-related fraud.

The AGs say the initiative is designed to assist homeowners who have been harmed by misconduct and fraud in the mortgage industry.
The alliance will link the California and Nevada attorney general offices’ civil and criminal enforcement teams in order to speed up investigations of wrongdoing in the two states, which have experienced similar foreclosure and mortgage fraud crises.
“The mortgage crisis is a man-made disaster that has taken a heavy toll on the country, but it saved its worst for California and Nevada,” Harris said. She described the mortgage crisis as “a law enforcement matter,” adding

that she and Masto will pursue prosecution to hold those responsible accountable.
The partnership forged between Harris and Masto illustrates the deep rifts that have developed within the attorney general camp in recent months over robo-signing settlement negotiations.
What started out as a united front of lead counsels from all 50 states has splintered as talks between the AGs and servicers has dragged on for over a year.
Massachusetts Attorney General Martha Coakley filed her own individual lawsuit against the five servicers taking part in the negotiations last week.
The California-Nevada mortgage investigation alliance is the product of weeks of discussion between Attorneys General Harris and Masto to ascertain “the most effective and efficient means of achieving justice” for their respective states, the two said in a joint statement. Tuesday’s announcement formalizes an agreement reached between the two officials last week.
By most measures, California and Nevada have been the states hardest hit by the nation’s foreclosure crisis. The attorneys general note that the crisis in their states are similar because both employ a non-judicial foreclosure system in which a bank can foreclose on a borrower’s home without court oversight.
“The collective result has created a rich opportunity for predators, leading both states to make mortgage-related law enforcement action a top priority,” according to Harris and Masto. (DSNews)

Fannie Mae: Market Will Take Five More Years to Adjust

2011-12-06T23:56:00.000-08:00

“We are five years through a 10-year adjustment process,” said Fannie Mae chief economist Doug Duncan at the Five Star MPact Mortgage Banking Conference and Expo Tuesday morning.

Dodd-Frank has 300 rules that must be implemented in the market. Half of these have been implemented, and the second half will be enacted over the next couple years.
The secondary market will not start to see regulatory changes until these rules are set in place, and it will take a couple years to implement these changes as well.
In the upcoming year, the economy will see a 1.5 percent growth increase. However, this will not significantly affect employment, according to Duncan.
While the market will recover, it will take time to adjust to new regulations.
Every part of the mortgage market is directly affected by policy right now, Duncan said. With constantly changing policy, private capital holders cannot determine market risk and will not enter the market.
Private capital will remain on the sidelines until there is stability in policy, Duncan said.
The economy has already begun to recover, but people are not seeing the benefits of this recovery yet.
Output is back to pre-crisis levels, but the economy is functioning with 7 million fewer employees than it did prior to the crisis. Those who are employed have experienced decreases in benefits, hours, and wages.
The good news, according to Duncan, is that once we get through the next five years, “real estate is a good place to be.”

The United States, he says, is one of four countries that will see growth in its labor force in the next several years.
While some have worried that the aging Baby Boomer generation will leave a gap in the labor force as they retire, Duncan said immigrants will fill this gap.
And while, homeownership rates have fallen among the younger demographic in recent years, it remains strong among upper age groups.
The trend of homeownership is being delayed not diminished, according to Duncan.
People are staying in college longer, entering the workforce later, delaying marriage, and putting off having children. However, this is countered by improving health, which leads to longer life spans.
Homeowners will purchase homes later but will live in them longer into old age.
The biggest problem for the housing market right now is excess inventory, especially among distressed homes, according to Duncan in his keynote address at MPact.
Newly constructed homes for sale total about 60,000 right now, according to Duncan. He points out that this rate has not been this low since World War II when the population was half of what it is now.
On the other hand, there are about 4.5 million delinquent homes, one-fourth of which are vacant, Duncan says.
Regulations like HARP have been put in place to help homeowners, but this program in particular “ignores some of the reality facing homeowners ,” Duncan says.
A refinance on a 30-year mortgage generally extends a mortgage out again by 30 years. For underwater homeowners trying to get out of their mortgage, this extension does not appear as a relief, Duncan says.
Policy makers should attempt to address current problems in the market but should not over-extend under unrealistic attempts to address the market indefinitely.
This is not the first or the last time we will see a boom and bust in the market, Duncan says.(DSNews.com)

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

Online Only Auctions

2011-12-06T23:22:00.000-08:00

Time & People

in the last year, people spent a average 6 hours a day online

640 Million PC's in the world being used by 1.4 Billion people

7 out of 10 people in developed countries are on the internet

35 billion internet enabled devices in the world at the moment (how many do you have?)

This equates to 5 devices per person within the planet

Online Only Auctions

In the last year, social networking increased 82%

By 2015, everybody is going to be using FB or Social Media as their top mechanism for communication

2/3 of the worlds internet population are social networking...which means they are online, so if your auction is online you just might be able to reach some of them

92% of 15-19 years olds are using Social Networking sites like FB

Greatest growth on FB last year was the 35-49 year old

So, do you think that auction buyers are online???

Have real estate for sale? Give us a call!

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

Livermore - California - SWEET HOUSE AT A LOW PRICE. Coming Soon.....

2011-12-06T23:08:00.000-08:00

SWEET HOUSE AT A LOW PRICE. Coming Soon.....Very close to Downtown Livermore! 3 Brms, 1 Bath on corner lot.
For more information visit 24by7bid.com
Property presented by:
Erica Davis
Realtor/ Real Estate Auctioneer
GIVING YOUR DREAMS A HOME!
510-467-8993 direct
925-415-3450 fax
Erica@24by7bid.com
www.24by7bid.com
DRE# 01706516
Continental Realty/24by7bidRealty.com
16 Crow Canyon Ct. #100
San Ramon, CA

Experts Advocate Stabilizing Neighborhoods with Short Sales

2011-12-06T11:47:00.000-08:00

“Foreclosures are going to go up before they go down,” according to Craig Nickerson, president of the National Community Stabilization Trust.

Nickerson says estimates put foreclosure tallies at 850,000 this year, as high as 1.5 million in 2013, and then back to the levels we’re at today by 2015.

With all these distressed properties potentially making their way to an already stressed marketplace, Nickerson, along with a panel of industry professionals at the inaugural MPact Conference advocated for bulk short sales.

The panel discussion centered around neighborhood stabilization initiatives and HUD’s $7 billion program created to facilitate the rehabilitation of properties in communities challenged with high levels of foreclosures and property vacancies – aptly named the Neighborhood Stabilization Program (NSP).

“Foreclosure prevention by itself is not going to [be the] cure” for the housing crisis, Hala Farid, deputy director of Citigroup’s Office of Homeownership Preservation, told those attending the standing-room-only session.
Farid says Citi is devising a procedure where NSP program participants will have access to escalated points of contact to expedite the short sale process in support of neighborhood stabilization efforts.
Francis Martinez Myers, president of Employee Transfer Corporation (ETC) and ETCREO Management, said the industry is “on the cusp” of utilizing short sales as a viable means of stabilization, “but it’s not without its challenges,” she added.

“Lenders have to be aggressive about offering pre-approved listing prices for short sale properties,” according to Myers. She says having pre-approvals in hand would help facilitate transactions for bulk short sales.
Myers described the size and magnitude of this crisis as unprecedented. “I feel like we are in a five-alarm fire and we are still negotiating over which kind of garden hose we’re going to use … If we’re not careful and not aggressive, it’s going to be very difficult to get through this,” she said.
“Holistically we’re not doing enough fast enough,” according to Myers. Just “selling one house at a time, means 10 years from now we’ll still be here having this conversation,” Myers said.
She spoke of the advantages of tailoring services that are geared toward investors and nonprofit groups to facilitate bulk purchases of short sale properties.
Myers says her organization is working on a pilot initiative which aggregates available short sales in the market, pools together properties meeting investors’ and nonprofits’ qualifications, and lines them up for inspection.

Tyler Smith, VP of Wells Fargo’s REO disposition team, noted that managing investor participation with communities’ neighborhood stabilization efforts “can sometimes be a conflict of interest.”

According to Jerome Devadoss, manager of alternative dispositions for Fannie Mae’s REO sales operation, it’s important to engage community-minded investors to work alongside local nonprofits toward neighborhood stabilization, whether it’s through short sales or any other loss mitigation strategy.

Jim O’Donnell, manager of the West Coast REO Revitalization Program at Chase, says his company is exploring ways to facilitate short sales to nonprofit organizations. Chase is looking to make short sales and distressed portfolios part of its “First Look” program.

Short sales are increasingly making their way into the conversation as a practicable solution to support neighborhood stabilization.

Eric Will, senior REO sales director for Freddie Mac’s HomeSteps division, said “knowledge around this [short sale] space is growing. We know it needs to be done.”

Why online real estate auctions?

2011-12-05T12:37:00.000-08:00

Why online auctions?

Real estate auctions are one of the fastest-growing forms of Real-Estate Marketing in the United States. If you are a Seller who wants to move your property at an accelerated pace, and to earn true market value in return, then the Auction Method of marketing may be for you. If you are a Buyer who wants to make a smart investment at fair market value, and is tired of endless negotiations with unresponsive sellers, then the purchase of properties at Auction will work for you.
Until recently real estate auctions, unlike art and antique auctions, have experienced unfounded negative images in the market place. The majorities of auctions today don't result from foreclosure or distress situations, but rather are the result of a seller choosing a cost-effective, accelerated method to sell a property. Auction is truly a win-win situation: sellers obtain immediate cash and buyers purchase properties at fair market value, the price determined by open, competitive bidding.
Online Real Estate Marketing is an innovative and effective marketing tool which can be profitable to sellers and buyers, alike. In fact, under the right circumstances, online marketing can be the most effective way to accelerate a property sale and establish the property's true market value. All of our transactions are conducted via the Internet, on our company's website.
Our state of the art Online Marketing format allows customers and/or brokers/agents to transact from their own computer, 24/7, in the privacy of their own home or office. A property listed with our company, receives world wide exposure through our international alliance with an extended network of renowned real estate professionals and comprehensive marketing campaigns.
Our comprehensive marketing campaigns are creative, effective, results-oriented and tailored specific for each property. Each campaign is conducted on a local, regional, national and International level. Our company's experienced marketing professionals, execute the most focused cost-effective advertising campaign for every online listing.

Why sell real estate at auction

2011-12-05T12:33:00.000-08:00

Why selling at auction?

Real Estate Auction offer the seller another option.
Auctions create competition among buyers. Consequently, the Auction price can exceed the price of a negotiated sale.
An Auction generates excitement and heightens buyer interest.
An Auction creates the most exposure in the shortest period of time and accelerates sales.
Requires that potential buyers be registered and qualified with certified funds on the day of the Auction.
Eliminates high seller carrying costs -- such as interest, taxes, and maintenance.
Eliminates high seller carrying costs -- such as interest, taxes, and maintenance.
Auction is a true market forum.
A seller can plan and select the date they want to sell. They control the sales process.
A seller sets the terms and conditions of the sale while maintaining control of the property throughout the Auction.
Auction eliminates numerous and unscheduled showings.
Auction takes the seller out of the negotiation process.
Auction is an aggressive, advanced marketing program that increases potential interest in and awareness of a property.
A seller is able to obtain liquidity, free up capital and move on to other investments or property decisions.

Questions and Answers on selling at auctions

2011-12-05T12:26:00.000-08:00

Questions and Answers on selling at auctions

Q: Why should I sell my property using the Auction Method?
A: To accelerate the sale of your property by generating additional consumer interest and activity. Advertising a property for Auction creates a sense of urgency, bringing all interested parties together on one specified day. An Auction provides multiple bidders competing to buy, bringing higher revenues than negotiating with a single buyer. Non-contingent contracts and 30-day settlements are required of the buyer of your property. This means a quick transaction for you.
Q: I am not in financial trouble, and I am concerned about what people may think if I should Auction my property. Can you give me any insight on this?
A: You are not alone in your concerns. Many people are afraid of the old, outdated perception of Auctions that some people have. There are great differences in the marketing and the public image of a voluntary, 'by choice' Auction, such as ours versus a distress Auction. For example, some owners may offer financing on certain Auction properties. Our Auctions are positive, enthusiastic events designed to generate competitive bidding to secure the highest possible market price for your property.
Q: I am concerned about the net amount I will realize from the Auction, and my ability to cover my existing mortgage. What advice do you have to offer on this?
A: We understand your concerns and your need to cover an existing mortgage on your property. Auctions are designed to accelerate the sale of property by determining what the market is willing to bear. On Auction day, the market will determine what valuation is acceptable for your property. The fact that you are selling at Auction does not change the market value of your property. In short, if the market value is at a level below your existing mortgage, then that is the price that you have to work with regardless of whether you use the traditional method or the Auction method to sell your property.
Q: Will we still have to consider contingent contracts?
A: Everything that we sell at Auction is sold "as is" and "non-contingent," with a 30-day projected settlement date and the buyer paying all allowable closing costs associated with the sale.
Q: Where will the Auction of my home be held?
A: The property will be listed on our fully automated website for a predetermined time period. Buyers can bid on the property online from the comfort of their own home or office during the listed period.
Q: Who pays the Auctioneer fee?
A: The Auctioneer is paid via the buyer's premium, which is added to the buyer's final bid. There is no commission charged to the seller.
Q: Does "as is" mean that I do not need to disclose any known defects?
A: Though we are selling "as is," we must abide by applicable State and Federal Laws. The Broker-Auctioneer will offer full disclosure to all interested parties in accordance with the law.
Q: How do I sign up for Auction?
A: Contact 24by7bid Realty, Inc. to set up an appointment to view your property and determine whether it is appropriate for the Auction Method of sale. If your property is listed with a Real Estate Broker, ask them to refer your listing to Continental Realty, Inc. and the Broker will be compensated. After signing with us, expect a three to four week advertising campaign prior to your Auction day. Then expect to close in 30 days or less, with no contingencies.
Q: The property is priced below the market right now. What is this going to mean if I register it for Auction?
A: We find that often price is not the issue in determining why a property has not sold. Many times the reason that a property has not sold is that there has not been adequate traffic to view the property, and therefore, not enough interest has been generated in order to sell the property. In other words, it has become "stale" on the market. The Auction process is the best way to revive interest in the property and instill the excitement for it that will result in a positive sale.
Q: What types of properties do you sell?
A: We Auction all types of Real Estate, from condominiums, co-ops, townhouses, single-family dwellings, land, vacation properties, commercial, investment properties, to high-end premier properties and country estates. Auctions have been successful in all of these categories.

Study Uncovers Declines Among Owner-Occupant REO Buyers

2011-12-05T12:16:00.000-08:00

Looking for an REO buyer? It’s becoming harder to find owner-occupants to fit that bill.

New Vista Asset Management has published the results of a three-year study on buyers of foreclosed homes, covering 18 counties hit hardest by the mortgage crisis.
The company says the percentage of REO homes sold to owner-occupant buyers has decreased in almost every market.
In Los Angeles County, California, for example, owner-occupant REO buyers have dropped from 80 percent in 2009 to 60 percent by the third quarter of 2011.
New Vista’s study uses data extracted from local recorder, courthouse, and tax assessment records – looking at foreclosed homes sold by banks, HUD, Fannie Mae, and Freddie Mac – to determine whether the purchasers were owner-occupants or absentee owners using single-family homes as rental or vacation properties.
The company began tracking real estate sales transactions closed in the first quarter of 2009 and includes consecutive quarterly data through the third quarter of 2011.
“Although, quarter-by-quarter, we have observed some market-specific increases, over the entire period, owner occupancy rates for REO sales have broadly weakened,” said Brian Hurley, New Vista’s president and COO.
Hurley notes that with eleven consecutive quarters of data, the company can look beyond both seasonality and the temporary impact of demand stimuli such as the homebuyer tax credit, and observe “a clear pattern of decline.”
Wayne County, Michigan is the only market of the 18 analyzed that has seen the percentage of owner-occupant REO buyers increase over the last three years, albeit from extremely low levels.
In 2009, owner-occupants accounted for nearly 33 percent of REO purchases in Wayne County. By the third quarter of this year, their share had risen to just over 37 percent.
Wayne County was the only market that had an owner occupancy rate for single-family REO sales below 50 percent in 2009.

By the third quarter of 2011, owner occupancy rates for REO sales in an additional four of the studied counties had fallen below 50 percent, including Maricopa County, Arizona; Osceola County, Florida; Miami-Dade County, Florida; and Clark County, Nevada.
Most markets included in the study saw their share of owner-occupant REO buyers drop by double-digits over the three-year period.
Kevin Stein is with the California Reinvestment Coalition, a nonprofit organization that advocates for increased access to credit on behalf of California’s low-income communities.
Commenting on New Vista’s results, Stein said, “We are troubled by the significant drop in owner occupant purchases of REO properties in these hard hit markets, which is no doubt compounded by decreased access to credit and a failure to repair foreclosed properties to move-in condition.”
Stein says the increased investor acquisition of REOs is reversing the years of community development progress that nonprofits have facilitated.
“We need to ensure that lenders, nonprofits and government agencies are working together to give qualified homebuyers a fair chance to purchase REO properties and help stabilize residential neighborhoods,” Stein added.
While New Vista has been tracking the study’s findings since the first quarter of 2009, company management elected to formally publish the index in response to a growing focus on investor-driven solutions to the nation’s residential real estate crisis.
“Several initiatives now under consideration promise to channel more houses to investors rather than to owner-occupant purchasers,” Hurley noted.
“We timed the first release of our study to raise awareness of the community impacts that current REO disposition practices are already having,” he explained.
Hurley says bulk sales, drop-bid foreclosure auctions, and proposals under review by the Federal Housing Finance Agency (FHFA) to facilitate the sale of government-owned REOs for rental purposes all promise to move more REOs out of local real estate markets.
“Before the market adopts new strategies to address an expected surge in foreclosure volumes, we wanted the owner-occupancy impact of current approaches to be well understood,” Hurley said.
New Vista’s “Index of the Percentage of Single Family REO Properties Sold to Owner-Occupant Buyers” will now be published quarterly.
The company plans to increase coverage to include additional markets in 2012. (DSNews.com)

Congress Calls for Principal Reductions from GSEs

2011-12-01T08:59:00.000-08:00

Twenty-one members of Congress sent a letter to Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco urging him to encourage principal reductions on loans backed by Fannie Mae and Freddie Mac.
“We do not urge that the enterprises reduce principal on mortgages as a kindness to homeowners,” the letter stated.
Instead, the congressmen support principal reductions on the basis that they will save taxpayers from some further potential losses.

The lawmakers cite first-quarter data from the GSEs stating 17.7 percent of Fannie borrowers are underwater, as are 19 percent of Freddie borrowers. These borrowers, they say, “are obviously at great risk of eventual default.”
With 44 percent of loans modified in the past two years more than three months past due, according to Freddie Mac data cited in the letter, “[t]he performance of the enterprises’ mortgage modifications leaves much to be desired for homeowners, for the housing market, and for taxpayers,” the letter stated.
The representatives urge DeMarco to disregard the short-term effects of principal reductions on the GSEs’ balance sheets in favor of looking at the long-term positive effects these reductions might have.
They point to an Amherst Securities study that negates the “moral hazard” theory, which hypotheses that offering principal reductions encourages homeowners to default.
“Right now, the FHFA is preventing underwater homeowners with mortgages backed by Fannie Mae or Freddie Mac from receiving balance reductions, even when a principal modification would save the investor – in this case meaning taxpayer – money compared to foreclosure,” said George Miller (D-California), one of the representatives who signed the letter. (DS News)

California Housing Production Increases for Third Consecutive Month in October, CBIA Announces

2011-11-30T23:26:00.000-08:00

SACRAMENTO – California housing production increased for the third consecutive month in October as builders pulled permits for 17 percent more housing units when compared to October 2010, the California Building Industry Association announced today.

According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,782 total housing units in October, up 17 percent from the same month a year ago but down 26 percent from September. Permits for single-family homes totaled 1,444, down 4 percent from October 2010 and down 8 percent from the previous month, while multifamily permits totaled 1,338, up 54 percent from a year ago but down 38 percent from September.

For the first ten months of the year, permits were pulled for 37,274 total units, up 7 percent when compared to the first ten months of 2010 when 34,745 permits were issued. Permits for single-family homes were down 14 percent while permits for multifamily units were up 38 percent.

“This is definitely what we would like to continue seeing, but I wouldn’t call this a recovery quite yet,” said Mike Winn, CBIA’s President and CEO. “All of this year’s incremental growth can be attributed to the multifamily sector. Single-family homebuilding is still struggling and that’s the sector that usually has a greater impact on jobs and the economy.”

Winn noted the CIRB forecast remained unchanged with a total of 46,000 residential permits expected to be pulled in 2011. The forecasted single-family total of 21,500 units would be the lowest on record since CIRB began tracking permits in 1954 while the forecasted yearly total would put this year a scant 3 percent ahead of 2010’s 44,762 units.

“We continue to be going in the right direction but we still must ask our lawmakers to do no harm as our industry continues on the fragile path to recovery,” said Winn. “Getting single-family home construction back on track would go a long way toward putting people back to work and getting our state’s economy moving again.” (CAR Newsline)

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

Fed Records First Rise in New Mortgage Delinquencies in a Year

2011-11-29T08:00:00.000-08:00

About 2.5 percent of current mortgage balances in the U.S. transitioned into delinquency during the third quarter, according to a new report issued by the Federal Reserve Bank of New York Monday.

That assessment reverses a recent trend of reductions in the measure of newly delinquent mortgage balances. Prior to the rise in the most recent quarter, the Federal Reserve had recorded declines in the percentage of current mortgages falling behind on payments going back to the third quarter of 2010.
The rate of transition from early (30-60 days) into serious (90 days or more) delinquency also rose slightly, with 31.3 percent of early stage delinquencies moving into the seriously delinquent bucket during the third-quarter period.
The New York Fed says deterioration among delinquent mortgages was accompanied by a significantly lower cure rate, with the transition rate from early delinquency to

“current” decreasing over 4 percentage points in the quarter.
About 264,000 individuals had a foreclosure notation added to their credit reports between June 30 and September 30 – a 7 percent decrease when compared to new foreclosures during the second quarter. New bankruptcies during the third quarter tallied 423,000, down on both a quarterly and annual basis.
Mortgage balances on consumer credit reports fell by approximately $114 billion or 1.3 percent over the third quarter while home equity lines of credit (HELOC) balances increased by roughly $14 billion or 2.3 percent.
Mortgage originations, which the Fed measures as appearances of new mortgages on consumer credit reports, fell for a second consecutive quarter to $292 billion. Mortgage originations in the third quarter of this year were 17 percent below the previous quarter’s level and 24.7 percent below a year ago.
At $292 billion, mortgage originations last quarter were at their lowest level since mid-2000.
Household mortgage and HELOC indebtedness are now 9.6 percent and 10.5 percent, respectively, below their peaks.
Consumer debt overall declined by approximately $60 billion to $11.66 trillion between the second and third quarters.
Andrew Haughwout, VP in the research and statistics group at the New York Fed, says the decline in outstanding consumer debt reveals that households continue to try and deleverage in the wake of a challenging economic environment and large declines in home values. (DSNews.com)

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

2011-11-28T13:42:00.000-08:00

Overcome mental roadblocks that lead to foreclosure

2011-11-28T13:24:00.000-08:00

There are several government reports out now stating that most homeowners who lose their home to foreclosure never contact the bank to determine whether they can work something out with them, despite the ubiquitous government, bank and media education campaigns encouraging them to do just that.
While I'd wager that a small portion of this number are strategic defaulters who plan to walk away from the home in any event because of its deep negative equity, the vast majority are folks who have lost a job, seen their business income decline during the recession and/or had their payment adjust steeply upward sometime over the past couple of years, and have simply fallen behind on the payments.
Simply ignoring the bank's calls and letters does not just get a distressed homeowner out of a hard conversation or two; the ultimate results of this plan of inaction include losing the property to foreclosure and bank repossession, including eviction and having to find another place to live.
Could those things happen anyway, even if you do reach out to the bank? Absolutely. But there are still millions of homeowners every year who are able to save their homes, under a bank or government loan modification or refinance program, or even amicably agree to a less traumatic surrender of the property than foreclosure, by short-selling the property or negotiating a deed-in-lieu of foreclosure.
It only makes sense to try.
But not everyone does. Here are a few of the emotions and psychological underpinnings I suspect motivate a homeowner in mortgage distress to completely avoid the situation and fail to seek help with keeping their homes. And just in case you recognize yourself in any of these, I've also included some steps for deactivating these issues and rethinking your (non-)approach.
1. Fear and panic. The thought of not being able to make your mortgage payment -- and then actually missing it -- induces a constant, chronic state of fear and overwhelming dread. If you have a contingency plan in place -- a check you know is coming, or a new job where you'll get your first check in a week or two -- those emotions are manageable. But if you have no backup plan, or it falls apart, fear quickly comes to panic -- and panic is paralyzing.
If you're about to miss a mortgage payment or have just missed one, and are feeling that paralyzing panic of not knowing what to do next, decide to do just one thing today -- right now -- to break the hold of that panic. First things first: Search the Web to get educated about the foreclosure process in your state.
On average, it takes 22 months of missed payments before banks foreclose on a home, on today's market. That's not to say you should plan on missing that many, because many states allow foreclosure after six months, and even a single missed month can be difficult to ever recover from.
But it should also help you understand that you'll probably not be evicted tomorrow, and you probably do have some time to try to work something out, whether with the bank or with your own financial situation.
Any little item you do will help put the kibosh on your panic. So, go to your mortgage company's website and figure out who it is you are supposed to call. Calendar your time to call the bank, or call them right now. Just do something, no matter how little, but do it now.
2. Guilt and shame. The longer you've been a responsible homeowner, the more susceptible you are to feeling guilt and shame at the prospect of needing to reach out and ask someone for help.
If feelings of guilt for making a bad mortgage choice five years ago or shame at having lost your ability to support your family and make the mortgage payments are holding you back from making the call, get over it. Guilt and shame are the lowest-energy, least productive of all the human emotions.
And the fact is, you certainly are not alone in having chosen an unsustainable mortgage or having lost your job. The guilt and shame you feel now, if this describes you, are nothing compared to what you will feel if you lose your home without having given the effort to save it your best college try.
3. Intimidation. Perhaps things would be different if this was unfolding back in the days of the friendly neighborhood banker. These days, homeowners read headline after headline about the banks having foreclosed on the wrong people, flat out refused to help hundreds of thousands of homeowners who were targeted by the government housing programs, and running loan modification applicants through an insane rigmarole of lost documents and required resubmissions and last-minute notices that the home is on the auction block.
I have personally known people so intimidated and overwhelmed at the thought of even taking on this David vs. Goliath-style battle that they just pack their bags and move out as soon as they know they're going to miss a payment.
If this describes you, consider getting some help in dealing with the banks. There is a lot of free help around.
Visit NACA.com and learn about their extremely successful, nearly free HomeSave program.
If you live in one of the "Hardest Hit" states or D.C., contact your state's housing finance agency, which can directly assist you with designated "Hardest Hit" funds, and has particularly unique and powerful options for those receiving unemployment insurance or who are back at work but struggling to get caught up on their mortgage payments.
Additionally, many HUD-approved credit counseling services will negotiate with your lender on your behalf in a delinquent mortgage situation, for very low or no cost. (Tara-Nicholle Nelson - Inman News)

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

Top reasons to sell home in winter

2011-11-28T13:13:00.000-08:00

We're getting close to the end of the year, which begs the question of whether it's worthwhile trying to sell your home now. Is it a waste of time? Will it sit on the market and become shopworn? Should I take my house off the market for the holidays? Will the home-sale market be better for sellers in 2012?
The first question you need to ask yourself is: Are you emotionally prepared to sell? Selling is a challenge for most sellers, although some markets are better than others. Unless you bought more than eight to 10 years ago and preserved your equity, you may not be able to sell for enough to pay off the mortgages secured against the property and the other costs of selling.
For sellers who have no additional assets, a short sale or foreclosure may be the only option. If so, first look into government programs that might help you out financially. Also, talk to your attorney and tax adviser.
Sellers who have the resources to make up the difference between the sale price and the amount they owe need to ask themselves if they are willing to pay the additional cash in order to sell and move on.
There are two reasons why you might prefer bringing cash to closing. One is that your credit will not be negatively impacted, as would be the case with a short sale or foreclosure. The second is that many buyers shy away from short sales because of the lengthy and uncertain process involved.
The next thing to consider is the condition of your home. Is it ready for the market? The most salable homes are those that are in move-in condition.
Before racing to the hardware store, ask your Realtor about how much competition there would be for your home if you put it on the market before the holidays. Some areas are shy on inventory of good homes on the market. If so, now could be a good time to sell.
HOUSE HUNTING TIP: The supply/demand ratio plays a significant role in the health of a local real estate market. No matter what is said about the housing market nationally, it's the local picture that tells the tale in terms of the possibility of selling your home at any given time.
Most sellers don't put their homes on the market during the last or first couple of months of the year. The inventory of homes for sale tends to dwindle during the winter months. Interest rates are low. So, if there are buyers in your local market, you may be at an advantage selling when most sellers are waiting.
Some sellers feel that if they've waited this long to sell, they should put the process on hold until spring and get the house ready in the meantime. Certainly, it's not a good idea to put your house on the market until it looks great. But if you and your house are ready to sell, move ahead.
The market in general tends to slow down over the holidays. But rather than pull your house off the market and miss a likely prospect, change the showing procedure to require advance notice. And enjoy your holidays. A sale before year end could be a great holiday gift.
There is a lot of pent-up demand, on both the buyer and seller sides. Sellers have been waiting for a better time to sell. Buyers have been waiting for more quality inventory and a sense that prices have bottomed or are close to it.
THE CLOSING: Recent projections call for another five or so years of bouncing along close to the bottom of this market cycle. Many experts believe that the big price declines are behind us. (Dian Hymer -Inman News)

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

Take advantage of expiring tax deductions

2011-11-28T11:34:00.000-08:00

There are several tax credits and deductions set to expire at the end of the year, and given the federal deficit problem, there's a good chance they won't be extended. If you want to take advantage of them, you need to act before Jan. 1, 2012.

Mortgage insurance premium deduction

If you itemize deductions, you may deduct the premiums you pay for mortgage insurance, just like you do mortgage interest. However, this deduction is phased out if your income exceeds certain levels. To qualify for the full deduction, a couple or a single taxpayer must have an adjusted gross income of $100,000 or less. The deduction is phased out completely if AGI exceeds $109,000.
This deduction, which was first enacted for 2007, is scheduled to expire at the end of 2011. Thus, your payments are deductible only if you pay them during 2011; a payment after 2011 is not deductible. (Inman News)

Rate on 30-year fixed mortgage falls to 3.98%

2011-11-28T11:30:00.000-08:00

WASHINGTON – The average rate on the 30-year fixed mortgage hovered above its record low for a fourth straight week. But cheap mortgage rates have done little to boost home sales or refinancing.

Freddie Mac says the rate on the 30-year fixed loan fell to 3.98% percent from 4% the previous week. Seven weeks ago, it dropped to a record low of 3.94%, according to the National Bureau of Economic Research.

The average rate on the 15-year fixed mortgage edged down to 3.3 percent from 3.31%. Seven weeks ago, it too hit a record low of 3.26%.

Rates have been below 5% for all but two weeks this year. Yet this year could be the worst for home sales in 14 years. (USA Today)

First-Time Buyers Drop Off as Tax Credits Expired…

2011-11-26T08:55:00.000-08:00

According to results from the C.A.R. 2011 Annual Housing Market Survey, the share of first-time buyers declined from 44 percent in 2010 to 34 percent in 2011, and fell for the second straight year. The proportion of first-time buyers was the lowest in the last four years, and it was the first time since 2008 that the share dropped below the long-run average of about 39 percent.
Demand for entry-level homes dropped significantly so far this year after the federal and the state tax credits expired in the second half of 2010. Tax credits were a big factor in many first-time buyers’ decision to purchase a home in the last two years, as seven in 10 surveyed* said the federal tax credit was either “very important” or “most important” in their home buying decision. Results from the Annual Housing Market Survey also support this finding as seven percent of all first-time buyers bought their homes primarily because of tax advantages in 2009 and 2010, however less than one percent in 2011 claimed that to be their primarily reason for purchasing a home.

(*C.A.R.’s 2009 First-Time Home Buyers Tax Credit Survey)

Mortgage Insurer PMI Files Bankruptcy

2011-11-23T14:25:00.000-08:00

The PMI Group, Inc. says it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code.

According to PMI, the move is a direct result of the seizure of its subsidiaries PMI Mortgage Insurance Co. and PMI Insurance Co. by their primary regulator in Arizona on October 20, 2011.
“The company intends to use the protections of the Bankruptcy Code to assess its strategic and other options for preserving stakeholder value in light of the actions taken by the” Arizona Department of Insurance, PMI said in a statement.
According to the Phoenix Business Journal, PMI sought to overturn the regulator’s seizure of its mortgage insurance operations, but that motion was denied on Friday.

PMI said it had been in talks with the Arizona Department of Insurance about raising additional capital from new investors in order to allow a third subsidiary, PMI Mortgage Assurance Company, to serve as a platform to write new mortgage insurance nationwide.
According to PMI, such a transaction would allow it to maximize claims payments and protect policyholder interests, but the company says actions taken by the Arizona Insurance Department “make it impractical” for the company to pursue such a resolution without bankruptcy protection.
The director of the Arizona Department of Insurance said in October that the agency will be making claim payments at 50 percent. The other half of the claim will be deferred as a policy holder claim.
None of the company’s subsidiaries themselves commenced chapter 11 proceedings. PMI says it will continue to operate in the ordinary course of business as debtor-in-possession under the jurisdiction of the Bankruptcy Court.
PMI is headquartered in Walnut Creek, California, although its primary insurance regulator is out of Arizona.
In connection with the bankruptcy filing, PMI’s $685 million of senior unsecured notes and approximately $51.5 million of junior subordinated unsecured notes have become due and payable. Noteholders’ ability to seek remedies and enforce their rights has been stayed as a result of the bankruptcy filing.
DSNews.com

Industry's Shadows Continue to Shrink

2011-11-23T12:47:00.000-08:00

That ominous shadow inventory of repossessed and soon-to-be repossessed homes is getting smaller.

Standard and Poor’s (S&P) has released its third-quarter shadow inventory update, which shows both the volume of distressed assets and the amount of time it’d take to liquidate these properties is contracting.
S&P says the volume of distressed residential mortgages included in its shadow inventory estimate remained “extremely high” at $384 billion in the third quarter, but it has declined in each quarter since mid-2010. S&P’s third-quarter evaluation is down from $405 billion at the end of the previous quarter.

“We believe this points to a continued drop in the amount of time it will take to clear this ‘shadow inventory’ over the next year assuming national liquidation rates do not decline abruptly,” the analysts at S&P said in their report.
Regional default and liquidation rates varied widely in the third quarter of 2011, but overall improvements prompted S&P to lower its projection of the number of months to clear the supply of distressed homes on the market and coming down the pipeline.
The agency now estimates that it will take 45 months to work through the national shadow inventory. This assessment is seven months below S&P’s peak estimate of 52 months in March 2011, but is three months longer than the agency’s estimate a year ago.
S&P calculates shadow inventory as the number of properties for which borrowers are 90 days or more delinquent on their mortgage payments, properties in foreclosure, and properties that are REO. The agency also includes 70 percent of the loans that “cured” from being 90 days delinquent within the past 12 months because these loans carry a higher risk of redefault.
S&P’s analysis of the shadow inventory uses only non-agency (non-GSE) data, but the company’s analysts say they believe the months-to-clear is similarly high for the market as a whole. (DSNews.com)

Happy Thanksgiving

2011-11-23T09:47:00.000-08:00

Happy Thanksgiving!

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

California's October Home Sales Post Gains for Sixth Straight Month

2011-11-22T14:52:00.000-08:00

According to the California Association of Realtors (CAR), pending home sales in California rose in October and was up from the previous year for the sixth consecutive month. Additionally, distressed home sales rose in October from both the previous month and year.

Pending home sales:

California pending home sales climbed 3.1 percent in October and was up from a year ago, according to C.A.R.'s Pending Home Sales Index (PHSI). The index was 122.0 in October, based on contracts signed in that month, up from September's index of a revised 118.2. The index also was up 10.7 percent from October 2010. October marked the sixth consecutive month that pending sales rose from the previous year. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

"October's increase in pending sales is encouraging, especially the six straight months of year-over-year increases," said C.A.R. President LeFrancis Arnold. "Despite all the challenges the housing market has faced this year, California home sales continue to perform modestly well and should be on pace to match or better last year's level."

Distressed housing market data:

At 53.9 percent, equity sales made up more than half of home sales in October, down from 55.5 percent in September and 55.2 percent in October 2010.

While equity sales have edged down from their peak of 57.1 percent in July 2011, they are up from the beginning of the year when less than half (46.5 percent) of sales were non-distressed.

The total share of all distressed property types sold statewide rose to 46.1 percent in October, up from September's 44.5 percent and 44.8 percent in October 2010.

Of the distressed properties sold statewide in October, 20.7 percent were short sales, slightly up from the previous month's share of 20.1 percent and up from last October's share of 19.7 percent.

At 24.9 percent, the share of REO sales was up from September's 24.0 percent, and slightly up from the 24.8 percent reported in October 2010.

worldpropertychannel.com

Freddie Mac Says Consumers Still Worried About Financial Well Being, Causing Continued Drag on Home Sales

2011-11-22T14:48:00.000-08:00

This week Freddie Mac released its U.S. Economic and Housing Market Outlook for November showing that despite positive economic signs consumers remain worried about their financial well being - a major reason why home sales remain relatively lackluster, despite the most affordable home-buyer market in decades. Regardless, originations are projected to see a boost from the extension and enhancement of the Home Affordable Refinance Program (HARP) and the extremely low fixed-rate mortgage rates that currently prevail in the market.

Frank Nothaft, Freddie Mac's chief economist tells the World Property Channel, "Allowing eligible borrowers to refinance (who otherwise may face a limited opportunity to refinance without paying down a significant chunk of their loan principal) and obtain substantially lower interest rates and monthly payments, will likely reduce defaults, ease distressed sales in markets, and provide needed cash flow to borrowers. This latter effect can, in turn, support additional consumption spending and be beneficial for economic growth in the long run. As an example of the potential amount of payment reduction, borrowers who refinanced during the third quarter (both HARP and outside of HARP) and were funded by Freddie Mac will save about $2,500 in interest payments in the first 12 months after their refinance."

Freddie Mac Report Highlights Include:

Domestic aggregate demand (consumers and businesses), rose 3.6 percent annualized during the third quarter, the second biggest quarterly gain in five years.

Non-residential fixed investment (buildings, equipment and software) expanded at a striking 14 percent pace during the third quarter; residential investment also rose a little bit for the second straight quarter.

The Freddie Mac House Price Index for the U.S. has recorded a 25 percent cumulative decline since the peak in mid-2006 through September 2011.

Ten-year Treasury yields continue to hover in a narrow band around 2.0 percent, while 30-year conforming fixed-rate mortgages have averaged about 4.0 percent in recent weeks.

The effect of the extended and enhanced HARP on single-family originations, assuming about $200,000 loan amount on average, is likely to be around $200 billion to $300 billion over 2012 and 2013, with most of the additional volume falling in the first year.

worldpropertychannel.com

How do real estate auctions work?

2011-11-19T10:25:00.000-08:00

How does the auction work?

Potential bidders are required to verify their identity and provide credit card information to guarantee a basic deposit; this discourages frivolous bids. Bidders are next briefed on what they are expected to do: thoroughly research the property and visit it if possible to verify its description and consider its value. They should review the preliminary title report to verify any that the title is clear of issues or at least as reported, and also to check zoning regulations and environmental credentials. The termite report and any disclosures mandatory in your state should also be reviewed.

An Oresy.com auction allows bids from the moment a property is listed until the closing second of the auction. When a bid is made, Oresy.com automatically confirms it with an email to the bidder and to you, the seller. Other potential buyers who have already bid will be notified that a higher bid has now been placed, prompting them for a response. In a typical online auction, bids are slow and low in the opening hours and even days, but bidding will intensify in the last day, hour, and quite likely even the last moments.

Important note: if a bid is placed at the last moment, the auction will be automatically extended by a few minutes to allow other bidders the opportunity to respond to the bid.

At the end of the auction, the system congratulates the winning bidder by email, and informs you, the seller, of the winning bid. Other bidders are notified that another bidder has won the auction.

Contact the winning bidder immediately to congratulate them and to arrange a meeting to sign the Purchase Agreement and to collect the earnest money deposit. The earnest money deposit should be in the form of a cashier’s check. If the high bidder is out of the area, and it is not possible to meet that day, you should email or fax the purchase agreement to the buyer and have the buyer return a signed paper copy, along with a cashier’s check for the earnest money deposit, within 72 hours.

The deposit should be made out to the escrow company; once the purchase agreement has been signed, the escrow process begins.