Is Your Home Safe From Burglers? Watch Out!

In our day and age we like to feel that we are safe. Our cars have alarms. We have nanny monitors to protect our children. You name it, we have it. But what if you found out that by simply buying a $2.00 item off of the internet any would-be burglar could simply open the locks on your home?

I was shocked to watch a video that a friend just sent me. You’ll want to watch this and do what you can to keep your home and family safe.

Since the video was forwarded to me, I can't post it on this blog. However, e-mail me and I will be happy to forward it on to you. What this video shows is an item called a "bump-key" which will fit into, and turn almost every common lock. I'll tell you, what I saw was frightening!

After I viewed the video I went on to You Tube, and there you will find videos that describe this disturbing practice, as well as dozens of videos that are telling would-be criminals how to make, purchase or find bump-keys that they can use. (I must say though, none of the You Tube videos are as top quality as the one that was forwarded to me.)

Since my job is helping people to fiachieve the American Dream, I certainly don't want to see people walking off with it's contents!

Let me know if you would like me to forward the lock bumping video, just put Lockbumping into the subject and I'll see you get it.

Meanwhile, stay safe!

Mortgage Debt Forgiven!

Mortgage Debt Forgiven

Thanks to legislation passed by congress, effective Jan 1, 2008, distressed homeowners will not be required to pay taxes on mortgage debt written off or forgiven as part of a bankruptcy, short sale, foreclosure, or renegotiation that involved the homeowner’s principal residence. Under the Mortgage Forgiveness Debt Relief Act of 2007, up to $2 million of indebtedness is shielded from taxes if the debt is the result of construction, acquisition and major improvement of the principal residence. (Use caution if you refinanced your home and drew money out. Ask a tax specialist whether you may be taxed in this circumstance.) The act applies to debt discharges from Jan. 1, 2007, through Dec. 31, 2009. (Found in California Real Estate magazine, Mar. 2008)

Major Lenders Put Freeze on Foreclosures

I just came across this article and thought it might be helpful to some of you regarding homes that may be in line for foreclosures. This could give hope to some homeowners who are in tough situations. I hope you find it useful. If you have any real estate questions, or I may be of help to you in any way, please don't hesitate to give me a call!


Major Lenders Put Freeze on Foreclosures
Banks will halt foreclosure proceedings to give lenders time to work out delinquency solutions. It's the latest attempt to tackle the housing crisis.

By Les Christie, CNNMoney.com staff writer
February 12 2008: 4:46 PM EST
NEW YORK (CNNMoney.com) -- Six of the nation's largest mortgage lenders, in a joint effort to cool the raging foreclosure crisis, have agreed to temporarily stop foreclosure proceedings on homeowners who have fallen seriously behind in their house payments.
Under a program unveiled Tuesday, legal efforts to oust seriously delinquent borrowers from their homes will be postponed for 30 days while lenders and borrowers try to work out payment options.
The effort, known as Project Lifeline, will not be confined to borrowers with adjustable rate mortgages. So-called ARMs have recorded the highest rates of delinquencies, even as default for loans of all types have risen dramatically over the past couple of years.
"For many families, Project Lifeline will temporarily pause the foreclosure process long enough to find a way out. Loan modifications may follow," said Alphonso Jackson, Secretary of Housing and Urban Development. "This program is not only available to subprime borrowers but to people with any kind of home mortgage."
The banks so far participating in the program are Citigroup (C, Fortune 500), Countrywide (CFC, Fortune 500), Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Washington Mutual (WM, Fortune 500) and Wells Fargo (WFC, Fortune 500).
Project Lifeline was put together with the backing of Jackson, Treasury Secretary Henry Paulson and Faith Schwartz, director of Hope Now, the government-backed, foreclosure prevention coalition.
Paulson said the effort won't be a magic bullet.
"There'll be homeowners who still take no action, and some will still walk away," Paulson said. "But some borrowers facing immediate foreclosures may find solutions."
Throwing homeowners a lifeline
Under the program, homeowners 90 days or more behind in their mortgages will get a letter from their lenders asking them to call. Borrowers will be asked if they want to stay in their homes; if so, they will be offered financial counseling.
Loan modifications are not automatically granted. Borrowers will have to provide up-to-date information about their wages and debts. At that point, the lenders decide whether to pause the foreclosure process.
During the moratorium, foreclosure prevention specialists will determine if there's a good possibility that a loan modification will work. In other words, will a borrower be able to regain his footing and start paying his mortgage again?
Any loan modifications - such as lowering interest rates, balances or both - will be provisional. After homeowners make payments on time for three months, the changes to the terms of loans will become permanent.
For lenders, repossessing homes has become an increasingly unprofitable venture. As real estate markets have turned down, many at-risk mortgage borrowers are upside-down - meaning they owe more on their loan than their home is worth.
These days, lenders often lose money when they foreclose on and resell properties - an average of $50,000 per home. It's cheaper to work out a deal with defaulting borrowers.
Reaction: Applause and questions
The moratorium idea has been raised before.
"Many people have been calling for a moratorium on foreclosures," said John Taylor, chief executive of the National Community Reinvestment Coalition. "I look on it as a good thing."
Last April, civil rights groups, noting that minorities were bearing the worst impact of the foreclosure crisis, called for a six month halt in foreclosure proceedings. In May, the California Reinvestment Coalition, a community advocacy group, lobbied state legislatures for a similar, statewide plan. This past December, Sen. Hillary Clinton went on record supporting a 90-day halt.
Jim Rokakis, treasurer of Cuyahoga County in Ohio, which has been hard hit by foreclosures questioned the initiative.
"Does this mean you're going to do it again in 120 days?" he asked. Subprime resets will peak again in the spring and Hope Now's effort includes notification of resets 120 days in advance.
"If they really want to make an impact they will require mandatory counseling before foreclosure can be completed. If you can't do it, you can't foreclose," Rokakis said.
As the foreclosure crisis deepened - more than 2.2 million foreclosures were filed in 2007, according to RealtyTrac, an online marketer of foreclosure properties - government forces and industry players expanded the scope of prevention efforts.
Jackson, the HUD secretary, said that Project Lifeline is just one effort to tackle the mortgage crisis. He cited FHASecure, which is refinancing many adjustable rate mortgage borrowers into government insured fixed rate loans; a five-year rate freeze, brokered by the Treasury Department, for many subprime ARM borrowers; and the provisions of the economic stimulus package that increase cap limits for loans eligible for purchase by Freddie Mac and Fannie Mae.
"The sum total of these actions is a powerful correction to the downward spiral of the housing market," said Jackson.
Still, the nation's housing crisis is deep and unlikely to ease up soon.
"In terms of subprime, the worst is just beginning," said Treasury Secretary Paulson. "The loans resetting over the next couple of years - that vintage was done under the most lax underwriting standards."

Conforming Loan Limits To Go UP!

You may have heard that the conforming loan limits are going to be increased. This, along with low interest rates could make quite a difference in our market! If you have been "on the fence" about whether or not it is time to buy- get in the game!

Check out this link, telling about the conforming rate change:
http://biz.yahoo.com/ap/080124/economy_stimulus_housing.html?.v=2&.pf=lo


Meanwhile, I appreciate and welcome your comments, questions and suggestions!

Remember, I am, always-

Your Realtor for Life.......

Patti Phillips

Getting Your Home Sold in Today's Market

Do you wonder what it takes to get a home sold these days? Do you have friends who are thinking of selling, or might currently have their home on the market?



Check out this fantastic video from the Today Show’s Real Estate expert, Barbara Corcoran, sharing advice on the top 5 mistakes that sellers make in today’s market…Barbara was one of the top realtor's in Manhattan for many years before recently selling her business, The Corcoran Real Estate Group. She really is an expert who "knows her stuff."



The video is about 5 minutes long and if you have moment, I encourage you to take a look – she has some excellent tips on how to achieve your goals.
http://www.msnbc.msn.com/id/21134540/vp/22646065#22646065
I’d love to hear your comments – please reply or call me and let me know what you think!



Sincerely,



Patti Phillips

Don't reduce your price to sell your home!

Your home is up for sale, but the market is slow. Finally, you get an offer on your home, but it is for less than you would like to take. Should you reduce your price to get it sold? Perhaps not! Instead, you may want to offer to buy down the buyer's interest rate.

Monthly payments:

If you reduce the price by $20,000 on your listing you will save the buyer $103.00 per month-
however, if you use the same $20,000 to buy down the interest rate you will save the buyer $541.00 per month!

Qualifying for a loan:

Did you know that a buyer of your $450,000 listing needs $96,000 in income to qualify for the loan. However the buyer of your reduced $439,000 listing needs $94,200 in income to qualify for the loan. If you took that same $11,000 dollar reduction and paid down the interest rate, that listing needs only 474,400 in income to qualify for the loan!

Care for more examples? Feel free to contact me and I'll show you how it works! Remember, with many people, they don't care what the price is. The monthly payment, the down payment and the ability to close the escrow are what would make the difference!

Until next time,

Patti Phillips

The Real Estate Market in San Diego?

Everyone always asks, “What’s going on in the market? Has it reached the bottom? Is it a good time to buy or invest? Below is a synopsis of some recent articles discussing the San Diego market. 2007 has been a tumultuous year in real estate almost everywhere in the United States and San Diego was no different, although maybe a little better than some areas.

· Economic indicators remain good. Interest rates are at very low levels, local Employment levels are strong, inflation is under control and the gross domestic product is growing. The current unemployment rate in San Diego county is about 4.8%. Some experts predict a net gain of about 5,000 jobs over the next year.

· The loan debacle needs to be put into perspective. While the subprime loan situation is a tragedy for some only about 10% of homes are financed with subprime loans. Many subprime loans will never be foreclosed so most of those borrowers have had a chance to own a home they would not have owned otherwise. The foreclosure rate on prime loans is usually about 0.6% to give some perspective. Real estate is a long term ownership proposition, so hopefully those subprime homeowners that survive will have a chance to build some equity over time and to take advantage of some of the concessions that have been made by their lenders.

· Local construction is way down and we are running out of buildable land in San Diego which bodes well eventually for existing properties. Once builders finish discounting their existing inventories the pressure that puts on other resale homes will diminish.

· Housing prices in many areas are still above their levels of 3-4 years ago. Several “experts” predict prices will be level to down 4-5% in 2008, so buying a home now on the market for 95% of the listing price gives the downside protection most people desire and could get them into their new home at or near the bottom of the market.

· Foreclosure activity in San Diego has been most concentrated in the south bay areas of Chula Vista and National City, east county and the Route 78 corridor because this is where most of the subprime borrowing took place. When a foreclosure hits the market in these areas it often devalues the entire neighborhood, especially if these foreclosed homes have been left in poor condition by the departing owner. This reduces the "flipping" opportunities for those kinds of buyers. Most of the coastal locales have fared better. As close as I can calculate I think about 5% of our current for sale inventory is foreclosures, although about 25% of the sales closing escrow are foreclosures, meaning it is tougher for non-foreclosure listings to sell unless they price accordingly. Some estimates conclude that about 25% of the foreclosures are investor owned properties, many of which the investor probably hoped to flip for a quick profit. Often for legal reasons the lenders are not taking deeply discounted offers and almost all bank-owned property is sold “as-is”, which sometimes eliminates many buyers who are not in a position to inject significant amounts of capital to bring the home back into prime condition, especially after tenants or angry owners have done their last minute damage. As of 12/31/07, approximately 358 of the 6,019 (6%) active condo listings in San Diego County were identified as bank owned, foreclosure or distress sales and about 602 of the 12,132 (5%) active detached home listings were similarly identified. This is far better than the 25%-50% we hear about in many other parts of the country.

· Tourism, San Diegos dominant industry, remains strong with large numbers of visitors spending time and money here every year. Many of my clients either visited here and wanted to eventually live in San Diego or lived here and moved away for some reason and then moved back.

· Our level of new incoming leads from potential buyers is at high levels and has been for several months with a high percentage opting to start automatic listing alerts, indicating a higher level of interest. This tells me that we could be bottoming out as more and more people are studying the market in preparation for a possible purchase. In fact, last month was the second most productive month of 2007 in terms of the number of incoming buyer inquiries.

2008 should be an interesting year in Real Estate! One always needs to remember, there will always be someone who needs to buy or sell, no matter what the market is! People get married, have more children, have health issues, job changes, scale down..... on and on.

I caution you that in this market, when listing, you really need to make certain that you are working with a top agent who is willing to spend the time, effort and money in seeing that your home get sold!

Meanwhile, I wish you a Happy 2008!