Ok, based on what I have been reading; here is my understanding on the mortgage tax credits that have been approved......
$10,000 California State Tax Credit:
The $10,000 tax credit applies to new home/condo's (not re-sale of existing home/condo) purchased as primary residences between March 1, 2009 and March 1, 2010. Tax credit is for $10,000 or 5% of the purchase price, whichever is lower.
Uncle Arnold will deduct $3,333 from the buyers taxes the first year of the purchase as well as the two following years. The owner MUST occupy as principle residence for the first two years or forfeit the tax break.
$8,000 First Time Buyer Federal Tax Credit:
You must purchase a home BEFORE December 1, 2009.
The credit only applies to a buyer who has not owned a principle residence in the prior three years.
To qualify for the maximum credit, single buyers must have an annual income of $75,000 or less and married buyers can have up to a $150,000 joint annual income.
The tax credit is equal to 10% of the purchase price with a limit of $8,000
The tax break does NOT have to be repaid....The $8,000 is your to keep!
Please contact your tax consultant to verify the above and how it will impact you personally. ....PLEASE NOTE, any of this is subject to change at the whim of our elected officials.....ok, I am just the messenger, I don't make the rules. :)
Friday, February 27, 2009
Thursday, February 26, 2009
Speier plan would aid refinancing in Bay Area
Carolyn Said, Chronicle Staff Writer
Thursday, February 26, 2009
(02-25) 21:04 PST -- Legislation heading to the floor of the House today would help more Bay Area homeowners qualify for the mortgage relief in President Obama's housing rescue plan.
After reading an article in Sunday's Chronicle indicating that many people holding the pricy mortgages common to the Bay Area would not be able to take advantage of low-cost refinances, Rep. Jackie Speier, D-Hillsborough, amended a bill scheduled for a House vote.
"After reading your article, I thought, this isn't going to work for California," Speier said.
"I've drafted an amendment so that rather than being limited to whether the loan was conforming at time of origination, it will be based on (whether it's conforming at) the time of (modification), which will take the limit up to $729,750 in high-cost areas. This should make more people in the Bay Area eligible."
Speier's amendment addresses an aspect of the plan that encourages mortgage services to modify loans to make them more affordable for struggling borrowers. The modifications are supposed to reduce monthly payments to 31 percent of a borrower's income for five years; they also could include lowering the principal or refinancing the loan.
The amendment says that loan modifications must be available to loans that are "conforming," meaning those that can be securitized or guaranteed by Freddie Mac or Fannie Mae. The conforming loan limit was $417,000 until July 1, 2007. About 60 percent of homes purchased in the expensive Bay Area in 2005 and 2006 were bought with higher-cost "jumbo" loans above $417,000; about 30 percent of homes in California were jumbos in those years, according to MDA DataQuick. The limit is now $729,750 in high-cost regions, including most of the Bay Area.
"This puts some parameters around what the Obama administration didn't articulate in its plan and makes it so an important program for the Bay Area and surrounding counties will be widely available to folks, particularly in those areas where mortgages are very high-cost," said Drew Hammill, a spokesman for House Speaker Nancy Pelosi.
Hammill added that loan modifications might be available for even-larger loans, but this language "protects the conforming loan limit in particular areas, which is vital."
Pelosi supports the amendment and the bill, which is expected to pass the House.
A central aspect of the bill, called the "Helping Families Save Their Homes Act of 2009," is a change to bankruptcy law. That controversial proposal, fiercely opposed by the lending industry, would allow judges to "cram down" or reduce the principal owed on mortgages to the home's actual value.
The bill also attempts to resurrect the Hope for Homeowners program, another plan to help modify mortgages, which was introduced with great fanfare last year but has helped only a handful of homeowners, according to reports. It increases incentives, lowers monthly payments for borrowers who qualify, and attempts to simplify some of the terms and requirements.
Another part of the bill would indemnify loan servicers from being sued by investors if they modified mortgages.
Thursday, February 26, 2009
(02-25) 21:04 PST -- Legislation heading to the floor of the House today would help more Bay Area homeowners qualify for the mortgage relief in President Obama's housing rescue plan.
After reading an article in Sunday's Chronicle indicating that many people holding the pricy mortgages common to the Bay Area would not be able to take advantage of low-cost refinances, Rep. Jackie Speier, D-Hillsborough, amended a bill scheduled for a House vote.
"After reading your article, I thought, this isn't going to work for California," Speier said.
"I've drafted an amendment so that rather than being limited to whether the loan was conforming at time of origination, it will be based on (whether it's conforming at) the time of (modification), which will take the limit up to $729,750 in high-cost areas. This should make more people in the Bay Area eligible."
Speier's amendment addresses an aspect of the plan that encourages mortgage services to modify loans to make them more affordable for struggling borrowers. The modifications are supposed to reduce monthly payments to 31 percent of a borrower's income for five years; they also could include lowering the principal or refinancing the loan.
The amendment says that loan modifications must be available to loans that are "conforming," meaning those that can be securitized or guaranteed by Freddie Mac or Fannie Mae. The conforming loan limit was $417,000 until July 1, 2007. About 60 percent of homes purchased in the expensive Bay Area in 2005 and 2006 were bought with higher-cost "jumbo" loans above $417,000; about 30 percent of homes in California were jumbos in those years, according to MDA DataQuick. The limit is now $729,750 in high-cost regions, including most of the Bay Area.
"This puts some parameters around what the Obama administration didn't articulate in its plan and makes it so an important program for the Bay Area and surrounding counties will be widely available to folks, particularly in those areas where mortgages are very high-cost," said Drew Hammill, a spokesman for House Speaker Nancy Pelosi.
Hammill added that loan modifications might be available for even-larger loans, but this language "protects the conforming loan limit in particular areas, which is vital."
Pelosi supports the amendment and the bill, which is expected to pass the House.
A central aspect of the bill, called the "Helping Families Save Their Homes Act of 2009," is a change to bankruptcy law. That controversial proposal, fiercely opposed by the lending industry, would allow judges to "cram down" or reduce the principal owed on mortgages to the home's actual value.
The bill also attempts to resurrect the Hope for Homeowners program, another plan to help modify mortgages, which was introduced with great fanfare last year but has helped only a handful of homeowners, according to reports. It increases incentives, lowers monthly payments for borrowers who qualify, and attempts to simplify some of the terms and requirements.
Another part of the bill would indemnify loan servicers from being sued by investors if they modified mortgages.
Composting Tips
My family has been composting for several years. I purchased a compost bin from our recycle provider which at the time was about $35.00 and keep it in our backyard. We use the plastic containers that salad mix comes in and fill up those during the week with all our organic scraps (no meat, cooked foods to keep the racoons away). When they get full I bring them out to the yard and dump them into the compost bin and voila...over time it all breaks down and every spring we have fresh soil for planting and the vegetable garden. Here are some helpful tips for composting at home: BTW, if you live in S.F. or don't have a yard for composting no worries, you can still compost! Go to: http://journeytoforever.org/compost_indoor.html
Composting—the controlled natural decomposition of organic material such as leaves, grass clippings, prunings, and fruit and vegetable scraps—happens with the help of oxygen-using microorganisms that transform these materials into compost, or humus, a nutrient-rich and biologically diverse soil enricher. The benefits are many. You save money by reducing the need to purchase fertilizers and soil amendments. Compost improves soil health and fertility and prevents erosion. It conserves water by helping the soil hold more moisture. And it helps the environment by diverting valuable organic materials from the landfill or incinerator. Aerating your compost pile aids bacterial action and speeds up the composting process.
Collecting vegetable and fruit parings, stale bread, and other scraps for your compost pile need not detract from your kitchen décor. A handpainted bowl covered with a perforated lid, a colander, or a cloth shields materials from view and insects, yet allows air to circulate, preventing mold and odors. For added style, use a china soup tureen (the ladle opening conveniently lets in air) or a small splatterware cooking pot with a lid.
Several companies offer sleek countertop collectors for compostibles. Gardeners Supply (Gardeners.com, (888) 833-1412) makes a 3.5-quart kitchen compost crock, available in cobalt blue or white, that looks like attractive china kitchenware. An activated carbon filter in the lid prevents odors, so you can go days before emptying. The company also offers five-quart containers in stainless steel and pressed copper, and a gallon-sized terra-cotta crock. Biodegradable cornstarch plastic liners are also available to keep your countertop container from getting messy.
The humble outdoor composter, where organics are transformed into humus, is often relegated to a corner of the yard, out of view. For people with small yards, the idea of an open compost pile or a black plastic composter within sight of a patio or bay window can be a deal breaker. However, with a little creativity, composters can complement your backyard scenery.
Bins are easy to make out of wood, scrap pallets, wire fencing, fence boards, and barrels. These low- and no-cost composters can become attractive with the addition of finished siding. Picket and bamboo fencing make an easy composter or can enclose an existing one. Seek out fencing with hardy slats and weather-resistant wiring. Bamboo and Rattan Works (BambooAndRattan.com, (732) 370-0220) offers half-inch bamboo-slat fencing as well as others made from flexible willow, twigs, and reeds. Hay bales, mud blocks, and even bricks also can be used as composter walls.
Another method is to insert five-foot-high branches or bamboo culms into the ground in a three- or four-foot-diameter circle. Space the branches three inches apart to let in air but hold the pile securely. Or, space them four or more inches apart and weave grapevines or willow branches through them for a more securely knit structure that hides its contents.
You can make an enclosed composter by drilling air holes in a barrel or an attractive plastic container. Remember that the ideal composter size is three or four feet high and wide; this allows for a critical mass of organics and biology. (If yours is smaller, insulate it to keep the biology cooking, and add worms.)
To further beautify your composter, plant evergreens, shrubs, decorative grasses, or climbing flowers such as nasturtium around it. (Beware of using morning glory and other invasive plants that may seed your compost with plants you don’t want to spread!) You might also plant nutrient-loving vegetables and berries around the perimeter to take advantage of the liquid nutrients that leach from the bottom of the composter.
Erect trellises around your composter and train primrose up them. This also helps ward off hungry critters. You can also buy a beautiful, ready-made flowering composter. The Scrap Eater by Sun Frost (SunFrost.com, (707) 822-9095) is an oak wine barrel brimming with plants. Hidden in the middle is a composter topped with a glass dome that helps heat up the pile. In addition to the plants, the composter is insulated with an air space, assuring that the composting microbes stay warm and effective.
Composting Tips
* In a countertop collector, place a used paper towel or half a sheet of newspaper on the bottom of the container so organics slide out easily. Newspaper and paper towels will also compost.
* An easy way to compost is to “batch” it: Fill one composter, then use another. When the second is full, the first will likely contain completely finished compost.
* Keep your compost moist! It should be as damp as a well-wrung sponge.
Composting—the controlled natural decomposition of organic material such as leaves, grass clippings, prunings, and fruit and vegetable scraps—happens with the help of oxygen-using microorganisms that transform these materials into compost, or humus, a nutrient-rich and biologically diverse soil enricher. The benefits are many. You save money by reducing the need to purchase fertilizers and soil amendments. Compost improves soil health and fertility and prevents erosion. It conserves water by helping the soil hold more moisture. And it helps the environment by diverting valuable organic materials from the landfill or incinerator. Aerating your compost pile aids bacterial action and speeds up the composting process.
Collecting vegetable and fruit parings, stale bread, and other scraps for your compost pile need not detract from your kitchen décor. A handpainted bowl covered with a perforated lid, a colander, or a cloth shields materials from view and insects, yet allows air to circulate, preventing mold and odors. For added style, use a china soup tureen (the ladle opening conveniently lets in air) or a small splatterware cooking pot with a lid.
Several companies offer sleek countertop collectors for compostibles. Gardeners Supply (Gardeners.com, (888) 833-1412) makes a 3.5-quart kitchen compost crock, available in cobalt blue or white, that looks like attractive china kitchenware. An activated carbon filter in the lid prevents odors, so you can go days before emptying. The company also offers five-quart containers in stainless steel and pressed copper, and a gallon-sized terra-cotta crock. Biodegradable cornstarch plastic liners are also available to keep your countertop container from getting messy.
The humble outdoor composter, where organics are transformed into humus, is often relegated to a corner of the yard, out of view. For people with small yards, the idea of an open compost pile or a black plastic composter within sight of a patio or bay window can be a deal breaker. However, with a little creativity, composters can complement your backyard scenery.
Bins are easy to make out of wood, scrap pallets, wire fencing, fence boards, and barrels. These low- and no-cost composters can become attractive with the addition of finished siding. Picket and bamboo fencing make an easy composter or can enclose an existing one. Seek out fencing with hardy slats and weather-resistant wiring. Bamboo and Rattan Works (BambooAndRattan.com, (732) 370-0220) offers half-inch bamboo-slat fencing as well as others made from flexible willow, twigs, and reeds. Hay bales, mud blocks, and even bricks also can be used as composter walls.
Another method is to insert five-foot-high branches or bamboo culms into the ground in a three- or four-foot-diameter circle. Space the branches three inches apart to let in air but hold the pile securely. Or, space them four or more inches apart and weave grapevines or willow branches through them for a more securely knit structure that hides its contents.
You can make an enclosed composter by drilling air holes in a barrel or an attractive plastic container. Remember that the ideal composter size is three or four feet high and wide; this allows for a critical mass of organics and biology. (If yours is smaller, insulate it to keep the biology cooking, and add worms.)
To further beautify your composter, plant evergreens, shrubs, decorative grasses, or climbing flowers such as nasturtium around it. (Beware of using morning glory and other invasive plants that may seed your compost with plants you don’t want to spread!) You might also plant nutrient-loving vegetables and berries around the perimeter to take advantage of the liquid nutrients that leach from the bottom of the composter.
Erect trellises around your composter and train primrose up them. This also helps ward off hungry critters. You can also buy a beautiful, ready-made flowering composter. The Scrap Eater by Sun Frost (SunFrost.com, (707) 822-9095) is an oak wine barrel brimming with plants. Hidden in the middle is a composter topped with a glass dome that helps heat up the pile. In addition to the plants, the composter is insulated with an air space, assuring that the composting microbes stay warm and effective.
Composting Tips
* In a countertop collector, place a used paper towel or half a sheet of newspaper on the bottom of the container so organics slide out easily. Newspaper and paper towels will also compost.
* An easy way to compost is to “batch” it: Fill one composter, then use another. When the second is full, the first will likely contain completely finished compost.
* Keep your compost moist! It should be as damp as a well-wrung sponge.
Tuesday, February 24, 2009
Whole Foods expanding in S.F. including Noe Valley, SOMA and other locations!
Whole Foods - the high-end, nonunion, specialty grocery store - will soon move into a 24th Street Noe Valley spot recently vacated by the more basic, unionized Cala Foods-Bell Market.
--------------------------------------------------------------------------------
Planning officials have approved a special permit required for the chain store to open on the commercial strip. Another nearby market, Real Foods, closed about five years ago, and the Bell Market shut down a couple of weeks ago.
"People have been very concerned about having a strong grocery store there, and I think Whole Foods did a really good job of reaching out to the community," said the area's supervisor, Bevan Dufty.
While Cala appears to be dropping out of the city, Whole Foods is looking to expand. In October, the Planning Commission granted a permit for a four-story, 62-unit condo building at Stanyan and Haight streets, with plans for a Whole Foods on the ground floor.
In addition to its existing grocery stores in Pacific Heights, Potrero Hill and SoMa, and the two pending in Noe Valley and the Lower Haight, there is also talk that Whole Foods wants to replace the shuttered Ford dealership at Dolores and Market streets - right across the street from the Castro Safeway.
--------------------------------------------------------------------------------
Planning officials have approved a special permit required for the chain store to open on the commercial strip. Another nearby market, Real Foods, closed about five years ago, and the Bell Market shut down a couple of weeks ago.
"People have been very concerned about having a strong grocery store there, and I think Whole Foods did a really good job of reaching out to the community," said the area's supervisor, Bevan Dufty.
While Cala appears to be dropping out of the city, Whole Foods is looking to expand. In October, the Planning Commission granted a permit for a four-story, 62-unit condo building at Stanyan and Haight streets, with plans for a Whole Foods on the ground floor.
In addition to its existing grocery stores in Pacific Heights, Potrero Hill and SoMa, and the two pending in Noe Valley and the Lower Haight, there is also talk that Whole Foods wants to replace the shuttered Ford dealership at Dolores and Market streets - right across the street from the Castro Safeway.
Sunday, February 22, 2009
New Fees for Home Buyers as of April 1, 2009
Check out the below article....Banks are trying to make money no matter what the consequence...Since the gov't is stepping in to try and make loans more affordable the banks are not willing to loose a penny so they are tacking on new fees. Give a buyer a break already!!!
If you fall into one of these categories and will be hit with new fees then you definately want to check into an FHA loan (Federal Housing Administration). Make sure you are working with a very good loan agent and if you need a recommendation, please let me know.
Home buyers to be dinged with new feesBeginning April 1, Fannie Mae and Freddie Mac will increase mandatory fees and toughen credit-score and down-payment rules.
Under the new guidelines, applicants will be charged more for down payments of less than 30 percent. Home buyers with FICO scores between 700 and 720 will pay an extra three-quarters of a point. Applicants who purchase a condominium and do not have a 25 percent down payment also will pay a three-quarter point add-on penalty, regardless of their FICO score, for purchasing a condominium instead of a single-family home.
The two Government Sponsored Enterprises (GSEs) said the additional fees are to counter higher risks and losses associated with certain loan products, buyer equity stakes, and credit scores.
To read the full story, please click here
If you fall into one of these categories and will be hit with new fees then you definately want to check into an FHA loan (Federal Housing Administration). Make sure you are working with a very good loan agent and if you need a recommendation, please let me know.
Home buyers to be dinged with new feesBeginning April 1, Fannie Mae and Freddie Mac will increase mandatory fees and toughen credit-score and down-payment rules.
Under the new guidelines, applicants will be charged more for down payments of less than 30 percent. Home buyers with FICO scores between 700 and 720 will pay an extra three-quarters of a point. Applicants who purchase a condominium and do not have a 25 percent down payment also will pay a three-quarter point add-on penalty, regardless of their FICO score, for purchasing a condominium instead of a single-family home.
The two Government Sponsored Enterprises (GSEs) said the additional fees are to counter higher risks and losses associated with certain loan products, buyer equity stakes, and credit scores.
To read the full story, please click here
Friday, February 20, 2009
Sunday Open House- 2/22, 3-4:30pm ..... 1708 Fell St. unit 2
ASKING: $749,000
2 BED/2 BATH w/Yard, Tree lined Street, 1 car parking, storage, HOA: $220/mo
This full floor condo lends itself to entertaining in its naturally lit open floor plan with high ceilings and large windows. Tucked away from the street, you are surrounded by the gracious greenery of mature trees. This two bedroom, two full bath unit features hardwood floors, mirrored walls, halogen track and recessed lighting. Thoughtfully designed, the marble kitchen countertops match the inlay of the wood-burning fireplace, and the custom built-in shelves and cabinets create both space and aesthetics in this inviting home. The U-shaped kitchen surrounds you on three sides with countertops, appliances, storage and a gas stove. The kitchen is extremely functional with a proper work triangle and special corner shelf, which cuts down on excess movement by centering your work space. The spacious bedrooms offer abundant closet space and the large windows overlooking the back yard allow for great natural light.
How Much Have S.F. Home Values Declined Since Their Peak?
Below is an analysis of San Francisco neighborhoods comparing dollar per square foot ($/sq.ft.) at what is estimated to be the time when peak value was reached, to what the $/sq.ft. was for sales occurring 10/15/08 – 1/30/09. (Sales occurring after 10/15/08 reflect the impact of the 9/15/08 financial meltdown on the SF market.)
The neighborhoods below were chosen because enough sales occurred in the comparison periods to generate what appeared to be reliable statistical results. (Many areas of the city did not have sufficient sales.) We have chosen $/sq.ft. because it is more trustworthy than median prices when trying to assess changes in value for specific properties. Indeed, median prices have dropped significantly more than $/sq.ft. because less expensive homes now make up a much larger proportion of sales than they did previously (for a variety of reasons, especially financing conditions).
Different areas reached peak values at different times – in 2006, 2007 or 2008 – and the asterisked notes denote the estimated peak value period that pertains. The price ranges of the sales included were chosen because we felt them to be in a standard range of value for the area and property type specified – thus attempting to eliminate both the ultra high end and the ultra low end, which often distort averages.
Important note: the changes delineated probably understate the actual decline in values for 3 reasons:
In a declining market, sales data – which typically shows up 30 to 45 days after acceptance of offers – will always be a step behind current activity, i.e. offers being accepted right now.
The market has definitely shifted to smaller, less expensive homes (less expensive as to total sales price). All things being equal, a smaller home will have a higher dollar per square foot value than a larger one, therefore skewing current values higher than they ought to be in an apples-to-apples comparison.
In a sellers’ market, virtually everything sells, but in a buyers’ market, typically just the best homes sell – best appearing, best condition and/or best value. So the $/sq.ft. for the recent period applies to the “best homes” while the $/sq.ft. for the peak period applies to homes of a much wider range of quality.
Key to Estimated Peak-Value Period for the Chart Below:
* Peak values estimated to have been reached 1/1/06 – 6/30/06** Peak values estimated to have been reached 1/1/07 – 6/30/07*** Peak values estimated to have been reached 1/1/08 – 6/30/08
Only homes with parking were included in the below analysis. SFD = single family dwelling (house)
Neighborhood or District
Property TypePrice Range
Avg $/sq.ft. at Peak of Market
$/sq.ft. for Sales10/15/08 – 01/09
Change in Avg $/sq.ft. Value
Bayview/Excelsior(District 10)*
SFD (House)$400 – 800k
$554/sq.ft.
$416/sq.ft.
- 25%
Ingleside/ Oceanview*
SFD$400k – 800k
$572
$459
- 20%
Potrero Hill/ Bernal Hghts**
SFD$700k – 1.6m
$678
$610
- 10%
Richmond District**
SFD$700k – 1.6m
$582
$547
- 6%
Parkside/ Outer & Central Sunset**
SFD$550 – 1.1m
$608
$542
- 11%
Miraloma/ Sunnyside**
SFD$600k – 1.2m
$667
$611
- 8.4%
SOMA**
Condo$500k – 900k
$689
$534
- 22.5%
Noe & Eureka Valleys***
SFD$800k – 2m
$856
$770
- 10%
Noe & Eureka Valleys***
Condo$500k – 1.2m
$759
$704
- 7%
Pacific Hghts/ Marina (Dist 7)***
Condo$600k – 1.2m
$818
$762
- 7%
South Beach***
Condo$500k – 1m
$785
$713
- 9%
Hayes Valley/ Alamo/ NOPA***
Condo$500k – 900k
$684
$612
- 10.5%
Averages are generalities and cannot account for the varieties in location, condition and amenities found in SF homes. Averages may be affected by unusual events or anomalous short-term trends, and do not necessarily reflect values for specific properties. All data from sources deemed reliable, but not guaranteed and may contain errors and omissions. Sales not reported to MLS – such as many new condo-development sales – are not included in this analysis. February 3, 2009
The neighborhoods below were chosen because enough sales occurred in the comparison periods to generate what appeared to be reliable statistical results. (Many areas of the city did not have sufficient sales.) We have chosen $/sq.ft. because it is more trustworthy than median prices when trying to assess changes in value for specific properties. Indeed, median prices have dropped significantly more than $/sq.ft. because less expensive homes now make up a much larger proportion of sales than they did previously (for a variety of reasons, especially financing conditions).
Different areas reached peak values at different times – in 2006, 2007 or 2008 – and the asterisked notes denote the estimated peak value period that pertains. The price ranges of the sales included were chosen because we felt them to be in a standard range of value for the area and property type specified – thus attempting to eliminate both the ultra high end and the ultra low end, which often distort averages.
Important note: the changes delineated probably understate the actual decline in values for 3 reasons:
In a declining market, sales data – which typically shows up 30 to 45 days after acceptance of offers – will always be a step behind current activity, i.e. offers being accepted right now.
The market has definitely shifted to smaller, less expensive homes (less expensive as to total sales price). All things being equal, a smaller home will have a higher dollar per square foot value than a larger one, therefore skewing current values higher than they ought to be in an apples-to-apples comparison.
In a sellers’ market, virtually everything sells, but in a buyers’ market, typically just the best homes sell – best appearing, best condition and/or best value. So the $/sq.ft. for the recent period applies to the “best homes” while the $/sq.ft. for the peak period applies to homes of a much wider range of quality.
Key to Estimated Peak-Value Period for the Chart Below:
* Peak values estimated to have been reached 1/1/06 – 6/30/06** Peak values estimated to have been reached 1/1/07 – 6/30/07*** Peak values estimated to have been reached 1/1/08 – 6/30/08
Only homes with parking were included in the below analysis. SFD = single family dwelling (house)
Neighborhood or District
Property TypePrice Range
Avg $/sq.ft. at Peak of Market
$/sq.ft. for Sales10/15/08 – 01/09
Change in Avg $/sq.ft. Value
Bayview/Excelsior(District 10)*
SFD (House)$400 – 800k
$554/sq.ft.
$416/sq.ft.
- 25%
Ingleside/ Oceanview*
SFD$400k – 800k
$572
$459
- 20%
Potrero Hill/ Bernal Hghts**
SFD$700k – 1.6m
$678
$610
- 10%
Richmond District**
SFD$700k – 1.6m
$582
$547
- 6%
Parkside/ Outer & Central Sunset**
SFD$550 – 1.1m
$608
$542
- 11%
Miraloma/ Sunnyside**
SFD$600k – 1.2m
$667
$611
- 8.4%
SOMA**
Condo$500k – 900k
$689
$534
- 22.5%
Noe & Eureka Valleys***
SFD$800k – 2m
$856
$770
- 10%
Noe & Eureka Valleys***
Condo$500k – 1.2m
$759
$704
- 7%
Pacific Hghts/ Marina (Dist 7)***
Condo$600k – 1.2m
$818
$762
- 7%
South Beach***
Condo$500k – 1m
$785
$713
- 9%
Hayes Valley/ Alamo/ NOPA***
Condo$500k – 900k
$684
$612
- 10.5%
Averages are generalities and cannot account for the varieties in location, condition and amenities found in SF homes. Averages may be affected by unusual events or anomalous short-term trends, and do not necessarily reflect values for specific properties. All data from sources deemed reliable, but not guaranteed and may contain errors and omissions. Sales not reported to MLS – such as many new condo-development sales – are not included in this analysis. February 3, 2009
Thursday, February 19, 2009
BEWARE! Property Reassessment Scams
I received one of these letters, don't be fooled!!!!
The scammers are back! Once again, property owners throughout California are being targeted by a number of private companies who are taking advantage of people during these tough economic times.
These companies, with names and mailers designed to look like official governmental documents, are soliciting fees ranging from about $80.00 to more than $200.00 to file a homeowner's request for a review of their property’s assessed value for the current tax year, presumably to obtain a lower tax bill on a lower valuation. While they usually prey on the elderly, immigrants and others who may be confused about how property taxes work, these companies are now sending mass mailers to most homes in California.
These official looking mailers are usually printed on a legal size form that contains the homeowner's name, address and current property assessment information preprinted on the form (which are available from public records). These solicitations may also include an estimated tax savings of hundreds or thousands of dollars. Some of the solicitations even create a false sense of urgency by stating that the property owner must comply by a certain date or there will be a penalty of an increased fee for the service.
The reality is that homeowners can request a reassessment of the value of their property at any time and do so directly with the County Assessor’s office – for free.
Virtually every County Assessor has a system for property owners to request a re-evaluation of their property’s value. The Assessors will have forms in their offices, and most have the forms online. The form may be called something like a “Decline in Value” form. Most counties have these forms available in several languages.
In many cases, the property owner can complete the form online; or they can also download and print a paper copy of the form, complete it and either fax, mail or hand deliver their request. Most County Assessors accept most of these methods.
If their request is found to be meritorious, the property’s assessed value will be reduced. If the request is ultimately denied, in most cases the homeowner still has the option to file an appeal before a county appeals board.
ALL OF THIS IS RELATIVELY EASY, FREE -- AND DOESN’T REQUIRE THE HELP OF ANY PERSON OR ENTITY TO ASSIST FOR A FEE.
The scammers are back! Once again, property owners throughout California are being targeted by a number of private companies who are taking advantage of people during these tough economic times.
These companies, with names and mailers designed to look like official governmental documents, are soliciting fees ranging from about $80.00 to more than $200.00 to file a homeowner's request for a review of their property’s assessed value for the current tax year, presumably to obtain a lower tax bill on a lower valuation. While they usually prey on the elderly, immigrants and others who may be confused about how property taxes work, these companies are now sending mass mailers to most homes in California.
These official looking mailers are usually printed on a legal size form that contains the homeowner's name, address and current property assessment information preprinted on the form (which are available from public records). These solicitations may also include an estimated tax savings of hundreds or thousands of dollars. Some of the solicitations even create a false sense of urgency by stating that the property owner must comply by a certain date or there will be a penalty of an increased fee for the service.
The reality is that homeowners can request a reassessment of the value of their property at any time and do so directly with the County Assessor’s office – for free.
Virtually every County Assessor has a system for property owners to request a re-evaluation of their property’s value. The Assessors will have forms in their offices, and most have the forms online. The form may be called something like a “Decline in Value” form. Most counties have these forms available in several languages.
In many cases, the property owner can complete the form online; or they can also download and print a paper copy of the form, complete it and either fax, mail or hand deliver their request. Most County Assessors accept most of these methods.
If their request is found to be meritorious, the property’s assessed value will be reduced. If the request is ultimately denied, in most cases the homeowner still has the option to file an appeal before a county appeals board.
ALL OF THIS IS RELATIVELY EASY, FREE -- AND DOESN’T REQUIRE THE HELP OF ANY PERSON OR ENTITY TO ASSIST FOR A FEE.
Wednesday, February 18, 2009
Homeowner Affordability and Stability Plan
Wednesday, February 18, 2009
President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the destructive impact of foreclosures on families and communities.The plan contains three main components, and only applies to primary residences. The loans referenced in the plan cannot exceed Freddie Mac/Fannie Mae conforming loan limits. I’ve outlined the plan in greater detail below.The first component is directed toward homeowners suffering from falling housing prices who still have equity in their homes, but no longer have the 20 percent equity needed to refinance. Under the plan, homeowners who have conforming loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance their homes, even if they do not have 20 percent equity left in the house. The U.S. Treasury Dept. estimates that about 5 million homeowners will be helped by this portion of the program.The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are “underwater” on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification. Primary mortgages would be reduced to monthly payments that do not exceed a 38 percent debt-to-income ratio, with the costs of doing so borne by the lender. The government and lender then would split the costs of further reducing the monthly payments until they were at a 31 percent debt-to income ratio. An important aspect of the initiative is that homeowners do not have to be delinquent to participate.The Homeowner Stability Initiative also will create incentives for servicers, mortgage holders, and homeowners. Servicers would receive an up-front fee of $1,000 for every eligible modification meeting the initiative’s guidelines. Guidelines are scheduled to be released by March 4. Mortgage holders will receive an incentive payment of $1,500, and servicers $500, for modifications made on loans that are current but at risk of imminent default.The final aspect of the Homeowner Stability Initiative is creating clear and consistent guidelines for loan modifications. The Obama Administration plans to work with federal agencies, banking and credit union regulators, and the private sector in order to develop loan modification guidelines that can be implemented across the entire mortgage market. While adoption of the guidelines will be voluntary for the private sector, all financial institutions receiving Financial Stability Plan assistance going forward will be required to implement the loan modification guidelines.The government estimates that between 3 and 4 million homeowners will benefit from the Homeowner Stability Initiative component of the plan.The third component of The Homeowner Affordability and Stability Plan is supporting low mortgage rates by strengthening Fannie Mae and Freddie Mac. The Treasury Dept. plans to increase their Preferred Stock Purchase Agreements with both Fannie Mae and Freddie Mac from its current $100 billion in both entities to $200 billion in each. The Treasury Dept. also will continue to purchase Fannie Mae and Freddie Mac mortgage-back securities in order to help promote stability and liquidity in the marketplace. Additionally, the Treasury Dept. will increase Fannie Mae and Freddie Mac’s portfolios by $50 billion, for a total of $900 billion. The Obama Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving home buyers, such as CalHFA. Funding for this will not come from TARP money but from the Housing and Economic Recovery Act.While some of the details still are being developed, such as the modification guidelines, the Obama Administration plans on using programs and funding already allocated for The Homeowner Affordability and Stability Plan and will need little legislative approval for programs under the plan.
James Liptak2009 PresidentCALIFORNIA ASSOCIATION OF REALTORS®
President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the destructive impact of foreclosures on families and communities.The plan contains three main components, and only applies to primary residences. The loans referenced in the plan cannot exceed Freddie Mac/Fannie Mae conforming loan limits. I’ve outlined the plan in greater detail below.The first component is directed toward homeowners suffering from falling housing prices who still have equity in their homes, but no longer have the 20 percent equity needed to refinance. Under the plan, homeowners who have conforming loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance their homes, even if they do not have 20 percent equity left in the house. The U.S. Treasury Dept. estimates that about 5 million homeowners will be helped by this portion of the program.The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are “underwater” on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification. Primary mortgages would be reduced to monthly payments that do not exceed a 38 percent debt-to-income ratio, with the costs of doing so borne by the lender. The government and lender then would split the costs of further reducing the monthly payments until they were at a 31 percent debt-to income ratio. An important aspect of the initiative is that homeowners do not have to be delinquent to participate.The Homeowner Stability Initiative also will create incentives for servicers, mortgage holders, and homeowners. Servicers would receive an up-front fee of $1,000 for every eligible modification meeting the initiative’s guidelines. Guidelines are scheduled to be released by March 4. Mortgage holders will receive an incentive payment of $1,500, and servicers $500, for modifications made on loans that are current but at risk of imminent default.The final aspect of the Homeowner Stability Initiative is creating clear and consistent guidelines for loan modifications. The Obama Administration plans to work with federal agencies, banking and credit union regulators, and the private sector in order to develop loan modification guidelines that can be implemented across the entire mortgage market. While adoption of the guidelines will be voluntary for the private sector, all financial institutions receiving Financial Stability Plan assistance going forward will be required to implement the loan modification guidelines.The government estimates that between 3 and 4 million homeowners will benefit from the Homeowner Stability Initiative component of the plan.The third component of The Homeowner Affordability and Stability Plan is supporting low mortgage rates by strengthening Fannie Mae and Freddie Mac. The Treasury Dept. plans to increase their Preferred Stock Purchase Agreements with both Fannie Mae and Freddie Mac from its current $100 billion in both entities to $200 billion in each. The Treasury Dept. also will continue to purchase Fannie Mae and Freddie Mac mortgage-back securities in order to help promote stability and liquidity in the marketplace. Additionally, the Treasury Dept. will increase Fannie Mae and Freddie Mac’s portfolios by $50 billion, for a total of $900 billion. The Obama Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving home buyers, such as CalHFA. Funding for this will not come from TARP money but from the Housing and Economic Recovery Act.While some of the details still are being developed, such as the modification guidelines, the Obama Administration plans on using programs and funding already allocated for The Homeowner Affordability and Stability Plan and will need little legislative approval for programs under the plan.
James Liptak2009 PresidentCALIFORNIA ASSOCIATION OF REALTORS®
Housing Benefits of the Stimulus Package
RATE UPDATE
Zero-points rates on conforming loans up to $417k and super-conforming loans up to $625,500 have improved to start this week as stocks have sold off and mortgage bonds have rallied—when bond prices rise in a rally, yields (or rates) drop. With the government participating in mortgage bond markets, lenders are pricing more conservatively than market levels might suggest because it’s harder than ever to predict which way markets will move. So we continue to see favorable terms on points: one point gets .625% to .875% lower in rate, so borrowers break even on a one-point buydown in 12-18 months. The new stimulus package raises super-conforming loan limits to $729k (more on this below). Jumbos 30yr fixed loans for SFR loans from $729k to $5m are looking good at 6.625%.
STIMULUS SUMMARY—THE WHOLE BILL
President Obama signed the $787 billion American Recovery & Reinvestment Act into law Tuesday, February 17. Funds will be allocated as follows, and consumers can track spending and timelines at www.Recovery.gov. The site is a pretty clever re-branding of the package that was branded as wasteful by a unified Republican minority in Congress. These categories aren’t fully defined on the site yet, and this doesn’t include a roughly $1 trillion bank rescue plan that’s forthcoming from Treasury. I cover the housing highlights in a separate section below.
Tax Relief: $288b. State and Local Fiscal Relief: $144b. Infrastructure and science: $111b. Protecting the Vulnerable: $81b. Health Care: $59b. Education and Training: $53b. Energy: $43b. Other: $8b.
STIMULUS SUMMARY—HOUSING PROVISIONS
Below are summaries of key housing provisions of the American Recovery & Reinvestment Act. Housing help that’s not in the Recovery Act explicitly but seems likely to fall in the “Protecting The Vulnerable” category (unless it is part of the Treasury plan) is a $50b investment plan for borrowers who haven’t yet been late on mortgage payments but are struggling. This is great for individual homeowners and critical for housing overall to stop the foreclosure spiral and stabilize home prices—foreclosures are estimated to top two million this year.
$729,750 Loan Limit Returns: FHA and Conforming loan limits we saw last year for high-cost areas have been restored. But please note that this change will take a few weeks for lenders to implement and price. Remember: the spreads between $417k-cap and $729k-cap loans were a lot wider than the current $417k vs $625k spreads. Note also that reverse mortgage limits have been increased from $417,000 to $625,500.
First-time Home Buyer Tax Credit: The tax credit for first time home buyers was increased from $7500 to $8000 for homes purchased between January 1, 2009 and December 1, 2009. A tax credit is equivalent to money in your hand, whereas a tax deduction just reduces taxable income. The credit no longer needs to be paid back as long as you live in the home without selling it for 3 years. The $7500 version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame. If you bought the home in 2008, the credit remains $7500, and it still needs to be paid back over a 15 year timeframe beginning in 2011 when you file your 2010 returns.
The credit phases out for couples making over $150k or singles making over $75k. The credit remains refundable. This means that first-time home buyers who owe less than $8000 in taxes for the year are still eligible for the full $8000 credit when they file their tax returns. In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill. The credit can be claimed on your 2008 tax returns that you file by April 15, 2009, even if you buy the home in 2009.
Home Improvement Tax Credit: The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1500. Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. Generally, your home improvement contractor and/or the manufacturer selling the improvements issues a certification that clarifies whether the improvements meet the necessary standards for energy efficiency. Most modern windows, furnaces, and air conditioners meet these requirements.
Conforming ($200,000 – $417,000) – 1 POINT
30 Year: 4.875% (5.09% APR)
FHA 30 Year: 5.0% (5.21% APR)
15 Year: 4.875% (5.08% APR)
5/1 ARM: 5.75% (5.96% APR)
Super-Conforming ($417,001 to $625,500 cap by county) – 1 POINT
30 Year: 5.375% (5.52% APR)
FHA 30 Year: 5.375% (5.52% APR)
Jumbo ($625,500 – $3,500,000) – 1 POINT
30 Year: 6.625 % (6.83% APR)
10/1 ARM: 6.25% (6.39% APR)
5/1 ARM: 5.375 % (5.52% APR)
Scenarios assume full doc pricing on purchase or rate/term refi (but not cash-out refi) loans for borrower with 720 FICO score or greater, at least 20% equity (unless FHA), and 6-12 months reserves left over after close (retirement assets counted at 70% of value for reserves). Better or worse rates apply to specific client profiles. Better rates are available using tax deductible points. ARM rates adjust the first month after initial fixed period shown, and once per year thereafter until year 30. Adjusted rate calculated by adding 2.25% margin to 1yr LIBOR index at time of adjustment. At first adjustment LIBOR+margin cannot exceed start rate+5%, subsequent yearly adjustments can never be greater than 2% per year, total of all adjustments for 30yr life of loan can never exceed start rate+5%. This is not a loan commitment nor a loan guarantee, rates based on loan amount ranges shown and rates available at the time of production. Rates subject to change without notice. California Department of Real Estate license #01376428. Equal Housing Lender.
Julian D. HebronRPM Mortgage, Van Ness
office: 415.701.2638
cell: 415.250.1050
Zero-points rates on conforming loans up to $417k and super-conforming loans up to $625,500 have improved to start this week as stocks have sold off and mortgage bonds have rallied—when bond prices rise in a rally, yields (or rates) drop. With the government participating in mortgage bond markets, lenders are pricing more conservatively than market levels might suggest because it’s harder than ever to predict which way markets will move. So we continue to see favorable terms on points: one point gets .625% to .875% lower in rate, so borrowers break even on a one-point buydown in 12-18 months. The new stimulus package raises super-conforming loan limits to $729k (more on this below). Jumbos 30yr fixed loans for SFR loans from $729k to $5m are looking good at 6.625%.
STIMULUS SUMMARY—THE WHOLE BILL
President Obama signed the $787 billion American Recovery & Reinvestment Act into law Tuesday, February 17. Funds will be allocated as follows, and consumers can track spending and timelines at www.Recovery.gov. The site is a pretty clever re-branding of the package that was branded as wasteful by a unified Republican minority in Congress. These categories aren’t fully defined on the site yet, and this doesn’t include a roughly $1 trillion bank rescue plan that’s forthcoming from Treasury. I cover the housing highlights in a separate section below.
Tax Relief: $288b. State and Local Fiscal Relief: $144b. Infrastructure and science: $111b. Protecting the Vulnerable: $81b. Health Care: $59b. Education and Training: $53b. Energy: $43b. Other: $8b.
STIMULUS SUMMARY—HOUSING PROVISIONS
Below are summaries of key housing provisions of the American Recovery & Reinvestment Act. Housing help that’s not in the Recovery Act explicitly but seems likely to fall in the “Protecting The Vulnerable” category (unless it is part of the Treasury plan) is a $50b investment plan for borrowers who haven’t yet been late on mortgage payments but are struggling. This is great for individual homeowners and critical for housing overall to stop the foreclosure spiral and stabilize home prices—foreclosures are estimated to top two million this year.
$729,750 Loan Limit Returns: FHA and Conforming loan limits we saw last year for high-cost areas have been restored. But please note that this change will take a few weeks for lenders to implement and price. Remember: the spreads between $417k-cap and $729k-cap loans were a lot wider than the current $417k vs $625k spreads. Note also that reverse mortgage limits have been increased from $417,000 to $625,500.
First-time Home Buyer Tax Credit: The tax credit for first time home buyers was increased from $7500 to $8000 for homes purchased between January 1, 2009 and December 1, 2009. A tax credit is equivalent to money in your hand, whereas a tax deduction just reduces taxable income. The credit no longer needs to be paid back as long as you live in the home without selling it for 3 years. The $7500 version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame. If you bought the home in 2008, the credit remains $7500, and it still needs to be paid back over a 15 year timeframe beginning in 2011 when you file your 2010 returns.
The credit phases out for couples making over $150k or singles making over $75k. The credit remains refundable. This means that first-time home buyers who owe less than $8000 in taxes for the year are still eligible for the full $8000 credit when they file their tax returns. In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill. The credit can be claimed on your 2008 tax returns that you file by April 15, 2009, even if you buy the home in 2009.
Home Improvement Tax Credit: The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1500. Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. Generally, your home improvement contractor and/or the manufacturer selling the improvements issues a certification that clarifies whether the improvements meet the necessary standards for energy efficiency. Most modern windows, furnaces, and air conditioners meet these requirements.
Conforming ($200,000 – $417,000) – 1 POINT
30 Year: 4.875% (5.09% APR)
FHA 30 Year: 5.0% (5.21% APR)
15 Year: 4.875% (5.08% APR)
5/1 ARM: 5.75% (5.96% APR)
Super-Conforming ($417,001 to $625,500 cap by county) – 1 POINT
30 Year: 5.375% (5.52% APR)
FHA 30 Year: 5.375% (5.52% APR)
Jumbo ($625,500 – $3,500,000) – 1 POINT
30 Year: 6.625 % (6.83% APR)
10/1 ARM: 6.25% (6.39% APR)
5/1 ARM: 5.375 % (5.52% APR)
Scenarios assume full doc pricing on purchase or rate/term refi (but not cash-out refi) loans for borrower with 720 FICO score or greater, at least 20% equity (unless FHA), and 6-12 months reserves left over after close (retirement assets counted at 70% of value for reserves). Better or worse rates apply to specific client profiles. Better rates are available using tax deductible points. ARM rates adjust the first month after initial fixed period shown, and once per year thereafter until year 30. Adjusted rate calculated by adding 2.25% margin to 1yr LIBOR index at time of adjustment. At first adjustment LIBOR+margin cannot exceed start rate+5%, subsequent yearly adjustments can never be greater than 2% per year, total of all adjustments for 30yr life of loan can never exceed start rate+5%. This is not a loan commitment nor a loan guarantee, rates based on loan amount ranges shown and rates available at the time of production. Rates subject to change without notice. California Department of Real Estate license #01376428. Equal Housing Lender.
Julian D. HebronRPM Mortgage, Van Ness
office: 415.701.2638
cell: 415.250.1050
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