10 Steps to Sell You Home Faster In A Slow Market

10 Steps to Sell You Home Faster In A Slow Market


You probably already know that real estate across most of the country is not appreciating as fast as it was at one time. This isn't necessarily a bad thing, unless of course you purchased last year and are now selling. People who have owned a property for a few years are generally well ahead in the game. We can't predict what 2009 will bring, but so far, most markets have at least slowed, if not declined. For the majority of established home owners in the prevailing market, prior property appreciation will ensure at least some degree of profit, though today's sales might not be as prosperous as they would have been in 2006. But all homeowners want to get the highest possible profits. How do you go about this? There are 10 negotiating steps that a seller can follow to assure that a person's home gets the best price and is sold quickly.

Step 1: Use a broker from the local area. When the market is down, so is the number of buyers. That means that you need to expose your property to as many potential buyers as possible. Who do prospective buyers get in touch with when they are house hunting? Real estate brokers. National Association of Realtors statistics show that 85% of purchasers count on real estate brokers for their home selections, while the Internet accounts for 80%. Who creates all of those online real estate postings? Real estate brokers from the local area.

Step 2: Familiarize yourself with the entire sale agreement. Nearly all jurisdictions have standardized real estate contract that has become lengthy and complex over many years. If you use one of those, read it carefully and be aware that you are agreeing to every unmodified term and condition. Make sure there is nothing in the agreement that needs to be taken out, rewritten or added. The brokers should offer a copy of the sale agreement that they might use at listing presentations and the sale deed should be read to avoid misunderstandings. As these are agreements on forms, whatever is not stated as a requirement by the law can be changed by a cross-out or addenda. Consult your attorney or broker for further detailed information.

Step 3: Be completely familiar with the current real estate market. For the sake of negotiations, knowing what the recorded sale prices were isn't sufficient because often they don't give the complete picture. As an example, two houses might have both sold for $300,000. A person might have sold for $350,000 while the other for $300,000 but the owner gave the buyer a 6 percent seller credit for a new roof and appliances, which is $18,000. Local brokers who are familiar with the details of recent sales are able to provide the best negotiation advice.

Step 4: Understand all of the terms you are willing to offer. You are confident that your home is going to sell at some satisfactory price, but instead of starting out with an inflexible amount, consider the property sale as a combination of price and terms. For example, it might make more sense in a slow market to help reduce the buyer's closing costs by offering a "seller contribution "instead of lowering the price of the property. Often the seller contribution could be significantly less than a reduction in price, and buyers who require cash to close the sale could find it more attractive as well.

Step 5: Request a smaller deposit. In order to bind a legal contract, the buyer needs to make a deposit. In an ideal marketplace, a seller will receive a large deposit, but in a down or "off" market, a much smaller deposit may have to be accepted. The buyers prefer to make the lowest possible deposit because a huge deposit indicates a big financial and psychological commitment. You can ask for a lower deposit if the buyer has mortgage pre-approval or if the buyer shows a strong interest in the property and you have no other offers.

Step 6: Sweeten the pot. Are you really planning to take large items like a swing set or washing machine? In certain cases it may be better to leave such items if a buyer makes an offer.

Step 7: MLS photos have to be updated. If your MLS photo shows snow around your home in the middle of the summer, potential buyers will know your house has been on the market a while. They may interpret this as meaning that you might be desperate to sell and will expect to lower your initial offer. Make sure your broker posts recent photographs.

Step 8: Fully understand the marketing plan. The broker's marketing plan should be reviewed quite often to see that it is being followed and is changed whenever it is needed.

Step 9: Check out open houses. Going to open houses, also known as your competition is a great idea. It isn't always easy to be objective. However, do other owners have selling ideas that might work in regards to your home? Is there something you can use to bargain with? You could consider offering to do some painting or other cosmetic repairs.

Step 10: Keep everything in context. Don't worry about nickels and dimes when your main goal is to get the house sold.

As an example, just before closing the deal, we had a buyer request an extra $600 to resolve last minute concerns. That gesture seemed like nothing more than a case of buyer's remorse, so we agreed to it, received an otherwise ideal price, and closed the sale. It wasn't long before the prices softened in the local market. It was better to lose $600 than to find another buyer later when the market was harsher and the final sale price might have been less by several thousands of dollars. Would we have preferred to save that $600? Certainly. However, six hundred dollars was a small price to pay considering that the delays could have meant a big reduction in price.

Via/Jenn Broderick

Press Release

Agoura Hills, CA (Grassroots Newswire) August 20, 2010 — CENTURY 21 Adobe Realty is announcing the launch of the 21st Century Child: Picture the Future photo-sharing contest. By participating, families throughout Agoura Hills can help raise money to benefit children and families living with autism.

Nationally, the CENTURY 21® System and its philanthropic partner, Easter Seals, are asking families in the United States – whether personally affected by autism or not – to visit 21centurychild.com and share a favorite photo of their child (ages five and younger) and an inspirational message. After the photo is uploaded, participants are encouraged to share their photo and fundraising campaign profile with family, friends and others through their social network. For every photo uploaded, the CENTURY 21 System will make a donation to the cause*.

Beginning August 1 and running through September 30, this innovative photo-sharing campaign unites families to support, inspire and empower those affected by autism. The contestant that generates the highest amount of financial contributions will win a $2,100 Apple gift card**. The next six highest fundraisers will win an Apple iPad***.

All money raised by the 21st Century Child: Picture the Future photo-sharing contest will help Easter Seals and Act for Autism provide families affected by autism with the assistance they so desperately need, including emotional support, equal access to treatment and innovative coping strategies.

“CENTURY 21 Adobe Realty is proud to support the Easter Seals’ Act for Autism campaign and we hope our local families will do the same,” said Michael Schaller. “By signing up at 21centurychild.com, sharing with your social network and driving donations, your child’s photo can do a world of good.”

According to the U.S. Centers for Disease Control, autism now affects 1 in every 110 American children and the lifetime cost of caring for a child with autism ranges from $3.5 million to $5 million****.

“As the fastest-growing developmental disability, autism is on the minds of many families across the nation,” said Dr. Patricia Wright, Easter Seals’ national director of autism services. “We want them to know that autism is treatable and with the proper therapy and support, these children can go on to live fulfilling and meaningful lives.”

Complete rules and regulations are available at www.21centurychild.com.

* Century 21 Real Estate LLC will donate $1 to the Easter Seals’ Act for Autism campaign for each uploaded photo in compliance with the rules of the 21st Century Child: Picture the Future campaign - up to $100,000
** In accordance with Apple gift card terms and conditions
*** 16GB Wi-Fi version – estimated value $499
**** American Society for Autism

About Easter Seals:
Easter Seals is the leading non-profit provider of services for individuals with autism, developmental disabilities, physical disabilities and other special needs. For more than 90 years, we have been offering help and hope to children and adults living with disabilities, and to the families who love them. Through therapy, training, education and support services, Easter Seals creates life-changing solutions so that people with disabilities can live, learn, work and play. Support children and adults with disabilities at www.easterseals.com or http://www.actforautism.org/.

About Century 21 Real Estate LLC
© 2010 Century 21 Real Estate LLC. CENTURY 21® Is A Registered Trademark owned by Century 21 Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each CENTURY 21 Office is Independently Owned and Operated.


Photo available for this release, please click on below link to download
http://www2.enewsrelease.com/ht/default.asp?releaseid=1119938

Foreclosure hurts long after home's gone, so cut a deal while you can

Here is an old article from 2007 that is still relevant today.

By Sandra Block, USA TODAY
If you're lying awake at night, fretting about whether you'll lose your house to foreclosure, you may not be the only insomniac on your block.
More than 2.1 million Americans with home loans missed at least one payment last year, according to the Mortgage Bankers Association. Even more troubling, the rate of new foreclosures hit a record.

The problem is likely to get worse. As adjustable-rate mortgages adjust to higher rates, many borrowers are finding they can't afford their payments. And the collapse of the subprime market has made it harder for those with tarnished credit to refinance.

But be aware: Even if your mortgage has become an intolerable burden, letting the bank foreclose could lead to a lifetime of hurt. Losing your home is just the beginning. A foreclosure will wreck your credit report for years, making it impossible — or at least extremely expensive — to buy another home, says David Jones, president of the Association of Independent Consumer Credit Counseling Agencies. If the proceeds from the sale of your home don't cover your loan, your lender might sue you to recover the unpaid balance.

Many borrowers who lose their homes to foreclosure haven't tried to negotiate with their lenders. That's unfortunate, because lenders are usually willing to work with borrowers to avoid foreclosure, says John Lamb, co-author of Solve Your Money Troubles. "With the number of foreclosures on the horizon, lenders are going to be more willing to work with people, because it doesn't do anybody good to have a glut of foreclosed houses on the market."

Ideally, you should call your lender before you miss your first payment, says Bob Walters, chief economist for Quicken Loans. If your payment is due on the first of the month, call before the 15th, which he says is usually when your lender will report the late payment to credit-reporting agencies. The longer you wait, the fewer options you'll have. Once your loan is declared in default, typically after you've missed three or four payments, you're "past the point of no return," Walters says. At that point, most lenders won't accept a partial payment of what you owe. Unless you can come up with the money to cover all your missed payments, plus any late fees, your lender will start foreclosure.

Avoiding default

If you're suffering a temporary financial setback, your lender may offer programs that will help you get back on track. They include:

• Forbearance. This is an agreement that lets borrowers make a reduced payment, or none, for a specific period. You might have to make larger payments once the crisis has passed. To qualify, you might need to show that you're expecting a bonus, a tax refund or other income that will let you catch up.

• Reinstatement. You agree to pay the full amount of your missed payments by a specific date. Reinstatement is sometimes combined with forbearance.

• Modification. Your lender agrees to change the terms of the loan to make payments more affordable. Your lender may agree to add missed payments to your loan balance or extend the term of your loan, reducing the size of your payments.

Before asking for forbearance or loan modification, be prepared to show that you are making a good-faith effort to pay your mortgage, says Jim Svinth, chief economist for LendingTree.com, a website that helps consumers shop for mortgages. If you can demonstrate that you've reduced other expenses, the lender will be more inclined to negotiate, he says.

Svinth warns, though, that your ability to negotiate will also depend on which institution owns your loan. If your bank still has your loan in its portfolio, it can modify the terms or offer forbearance. But many lenders sell loans into the secondary market, where they're repackaged as mortgage-backed securities. In that case, Svinth says, the company that's servicing your loan might be unable to change the terms.


Read the rest of the article here.

Contact Century 21 Adobe Realty if you have questions or want help with foreclosure. (818)338-1117

Condos that cost less than cars

The housing bust has made owning a home a lot more affordable -- but in some places, prices are extraordinary; you can buy a nice condo for less than the cost of a new family car.

Some cities have dozens of attractive condominium listings selling for $50,000 or $25,000. There are some selling for less than a new Toyota Corolla. And these are not derelict hovels in crime-ridden communities: These homes are often in move-in condition and located in nice neighborhoods.

"Not to sound like a salesman, but there are some real bargains out there," said Kevin Berman, a broker with Bankers Realty Services in Fort Lauderdale, Fla.

The housing bust has taken down the national median home price by about 23% since 2007, according to the National Association of Realtors (NAR). But condo have fallen even further, down about 25%.

In Sacramento, Calif., condo prices have fallen 59% from what they averaged in 2007, according to NAR. Miami condo prices have plunged 65%, and in Las Vegas they are off 66%.

Prices of individual units are down even more. One condo in Deerfield Beach, Fla., that sold for $115,000 five years ago now lists for $25,000. That's a drop of nearly 80%.

Read the full article here.

FOR IMMEDIATE RELEASE
Contact: Michael Schaller
CENTURY 21 Adobe Realty
(818) 338-1100
c21adobeinfo@century21.com

Local CENTURY 21 Office Releases Spring Survey Results
Agoura Hills, CA (Grassroots Newswire) June 22, 2010 - Many people dream of buying their first home or trading up to a new home that will better suit their changing needs. However, as the market begins to climb out of one of the most challenging economic downturns in recent history, the current state of the real estate market may be in question in many peoples’ minds. Is it the right time to make a move?
In April, two giants in the real estate market announced interesting survey results. Fannie Mae found that two-thirds of Americans (65 percent) are still bullish on homeownership, preferring to own a home despite the challenging economic environment and the housing downturn. Additional research conducted by Century 21 Real Estate LLC provides further insight.
CENTURY 21® First-Time Home Buyers and Sellers survey captured and compared the opinions of prospective home buyers and sellers who either purchased or sold their first home within the past year or are planning to buy or sell their first home within the next year. The majority of survey respondents had moved or intended to move more than 10 miles but less than 50 miles from their previous location, indicating current market conditions may be a catalyst for buying or selling homes, as opposed to a desire to dramatically change geographic location or relocate for a job.
“Buying a home, whether it’s your first or subsequent purchase, is the single greatest financial decision that most people will make in their lifetime,” counsels Rick Davidson, president and chief executive officer, Century 21 Real Estate LLC. “And, our research indicates that today’s market presents a generational opportunity for home buyers and current home owners looking to leverage their market position.”
Current Market Conditions
More than 80 percent of first-time home buyers and sellers feel the current housing market is more affordable today than this time last year. This is despite the fact that 40 percent of all respondents are more worried about the economy now compared to this time last year. Federal tax credits and solid mortgage rates have had a positive impact on driving people to take action.

Reestablishing Balance
A full market recovery takes time and current conditions continue to favor buyers. While buyers are excited about the opportunities in the current market, sellers note their main concern is losing money on the sale of their home and receiving offers near their asking price.
When will the balance between housing need and inventory return? The real estate industry typically considers six months of inventory to represent a balanced market. According to the National Association of REALTORS® the number of homes for sale currently represents approximately eight months of inventory and has decreased 21.7 percent below the record of 4.58 million homes for sale in July 2008*. First-time home buyers anticipate home prices will soon begin to rise and in fact, about half of first-time buyers (48 percent) expect an increase by this time next year, thereby reestablishing better market equilibrium.
Let an Expert Help Guide You
Whether you are considering buying or selling a home, 60 percent of first-time home buyers do not feel they have a good handle on the real estate process. Given the complexity and opportunity of today’s real estate market, 85 percent of both first-time buyers and sellers feel that using a real estate professional is important. Allow an experienced professional to help guide you to the home that is right for you, at a price you can afford.
The market is recovering and providing a powerful opportunity to act. Take advantage of positive price points and low interest rates today.
For additional information about market conditions in Agoura Hills, contact Michael Schaller at (818) 338-1100 or c21adobeinfo@century21.com.
*National Association of Realtors Existing Home Sales Report, March 2010
Methodology – Century 21 Real Estate LLC First Time Home Buyers and Sellers Survey
MarketTools, Inc. conducted a quantitative survey on behalf of Century 21 Real Estate LLC with 708 prospective home buyers and sellers who either purchased or sold their first home within the past year or are planning to buy or sell their first home within the next year. The quantitative study yielded results from 353 first-time home buyers and 355 first-time home sellers in the form of an online survey fielded from March 12 to 16. The margin of error for this study is 3.7 percent.

About Century 21
© 2010 Century 21 Real Estate LLC. CENTURY 21® Is A Registered Trademark Licensed To Century 21 Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each CENTURY 21 Office is Independently Owned and Operated.

After foreclosure: How long until you can buy again?

NEW YORK (CNNMoney.com) -- Walking away from a mortgage you can still afford to pay has consequences; everyone knows that. Your credit score is shot and it can be impossible to get credit.

Some homeowners, no doubt, believe that the credit score hit is worth getting out from a deeply underwater mortgage. They may owe, say, $500,000 when their house value is only valued at $350,000. And, they figure, there's no way it will ever be worth what they owe so it's better to get out from underneath the burden.

Read the rest of the article here.

What's a Linchpin?

Who is Seth Godin, what is a Linchpin and why should you care?

Seth Godin:

Writes the most popular marketing blog in the world;
Is the author of the bestselling marketing books of the last decade;
Speaks to large groups on marketing, new media and what's next;
And is the founder of Squidoo.com, a fast-growing recommendation website.

Read more about his bio here.

So what's a Linchpin?

Here is an answer I liked from Jacqueline Novogratz

You are invited to join us on June 14 2010 at 8PM! Here are the details!






ShareThis

California Home Buyer Tax Credit Monies May Run Out Fast

In fact, wait until June, and you might be too late. The tax board has estimated that the tax credits will probably run out by June 30. They have good reason to think that. Last year, while the tax credits were technically available until March 1, 2010, they ran out July 2, 2009. Schwarzenegger had signed that tax credit into law in February of 2009.

Here are this years highlights:


The program:

California plans to spend around $200 million dollars to fund this tax credit.
This is twice as much funding as the state’s previous home buyer tax credit, which was rolled out in March 2009 and exhausted by July 2009.
Who is eligible?

The home buyer must be a California taxpayer.
There is no limit on the income of the home buyer.
The program is available to both existing homeowners and first-time home buyers.
Current homeowners are eligible only if they buy a newly-built home.
First-time home buyers are eligible whether they buy a newly-built or existing home.
To be a first time home buyer, you cannot have owned a home anywhere in the world during the three years prior to buying your new home. If you’re married, that applies to your spouse as well.
How much is the credit worth?

The tax credit is worth up to 5% of the purchase price of the home, or $10K, whichever is less.
How does the home buyer receive the tax credit?

The payment is credited against the home buyer’s annual CA state income tax.
The total payment will be spread evenly over three years.
If you qualify for the full $10K, you’d get up to $3,333 per year – but only if you pay at least that much in annual CA state income tax.
If your CA state income tax is $4,000 a year, you get a $3,333 credit against that amount, effectively lowering your state income tax to $667.
If you owe less than $3,333 per year in CA state income tax, you’ll receive a tax credit only for that amount. The extra will not roll over into the following year’s payment.
The credit will begin to be applied to the tax year in which the home was purchased. If you buy your home in 2010, the tax credit will begin to be applied against your 2010 taxes.
You cannot apply the tax credit to your 2009 taxes, even if you file your 2009 taxes after you purchase your home.
What’s the deadline for claiming the credit?

Buyers of existing homes must close escrow between May 1 and December 31, 2010.
Buyers of new homes can either:
Close escrow between May 1 and December 31, 2010, or…
If they are unable to close escrows during that time, they can reserve a credit by entering into an enforceable contract between May 1 and December 31. They must then file the proper paperwork with the tax board and close escrow by August 1, 2011.


Applications
Will be acceppted by fax only beginning May 1, 2010. Applications received before escrow closes will be denied
Within two weeks (14 calendar days) after the close of escrow:
The seller must complete Parts II, III, and also Part IV (if the home has never been occupied) of Form 3549-A, Application for New Home / First-Time Buyer Credit, and provide a copy to the buyer or escrow person.
The buyer will complete Parts I, V & VI of Form 3549-A.
Fax the completed Form 3549-A and the final settlement statement (generally the buyer's HUD-1 statement) to FTB at 916.855.5577. It is best that the escrow company, on behalf of the buyer, fax the completed application and settlement statement to FTB and provide a copy to the buyer. (The buyer retains ultimate responsibility to ensure the completed application and settlement statement are submitted timely to the FTB.)

Kathy Fontana
Lic#01474065
Marlene Arimura Mortimer
Lic#01456323
"We Take You Where You Want to Be...HOME"!
(805) 479-0343
(805) 890-4414
www.C21KathyMarlene.com
info@C21KathyMarlene.com

Thousand Oaks Hero

Sunday, April 25, 2010 11:15am PDT

Teen sailor Abby Sunderland abandons nonstop around-the-world quest
By: Pete Thomas, GrindTV.com

Abby Sunderland, one of two 16-year-old girls on different quests to sail around the world alone, nonstop and unassisted, has announced she will head to Cape Town, South Africa, to repair a faulty autopilot system.

The high-school junior from Thousand Oaks, Calif., stressed on her blog that she will continue her journey after making repairs and seek to become simply the youngest person to solo-circumnavigate the planet in a sailboat.

Jessica Watson, Sunderland's Australian counterpart, is expected to complete her nonstop circumnavigation attempt in late May. Watson is enduring severe weather aboard her 34-foot pink sailboat as she travels beneath Australia en route to her finish point at Sydney Harbor. Watson, who is five months older than Sunderland, left Sydney last October.

Sunderland, who departed from Cabo San Lucas, Mexico, in early February aboard a 40-foot vessel, has been experiencing trouble with her autopilot system for the past several weeks, including during a precarious passage around treacherous Cape Horn at South America's tip.

Autopilots are supposed to hold a sailor's course but Sunderland's primary and backup units have been faulty. At one point recently, in rough seas and freezing temperatures, the intrepid mariner had to hand-steer from the stern deck for 24 consecutive hours.

She stated on her blog that it'd be "foolish and irresponsible" to transition from the South Atlantic to a long and potentially rollicking Indian Ocean stretch without fully operational equipment.

"I gave it my best shot and made it almost halfway around the world," she said. "I will definitely keep going, and whether or not I will make any more stops after this I don't know."

Read the full article here: http://su.pr/24Dg3X

Revealed…FICO Scoring Logic Specifics

Information from Fair Isaac on 'score penalties'

While everyone in the mortgage business is painfully aware of the importance of credit scores and are familiar with them, the depth of understanding and knowledge about them is, for most, fair at best. If you fall into this group (and you probably do) don’t despair: 1) you’re in good company, and 2) there is intentional mystery built into credit scoring models to uphold their proprietary value.
Surprisingly and recently, though, the “black box” of credit scoring was opened a tiny bit offering increased specifics into the FICO score. Fair Issac revealed insights and provided example score “penalties” for common credit missteps.


Read the rest of the article here: http://su.pr/2NLTEA

Post by Kathy Fontana & Marlene Arimura-Mortimer

Some home buyers get new state tax credit

Cash-starved California just came up with $200 million more to throw at the housing market.

On Thursday, Gov. Arnold Schwarzenegger enthusiastically signed a bill that will award an estimated $200 million in state income tax credits to people who buy a home starting May 1. The credit is worth up to $10,000, spread evenly over three years. The credit is available to anyone who buys a newly built home or to first-time home buyers who buy a newly built or existing home.

Knowing that many buyers won't save the full $10,000, the state is awarding more than $200 million in credits, hoping that the actual cost to the general fund will come in right around $200 million. The actual cost won't be known for more than three years.

The new bill will cost the state more than twice as much as last year's home buyer credit.

Early last year, the Legislature approved $100 million in state tax credits for people who bought a newly built home starting March 1, 2009.

Last year's credit was also worth up to $10,000 spread over three years but applied only to new homes, not existing ones. The credits, which were allocated on a first come, first served basis, ran out in less than four months, and the Franchise Tax Board stopped awarding them July 2.

The tax board estimated that last year's credit will cost about $70 million in lost tax revenues, $30 million less than the sum allocated, because many buyers won't use their entire credit.

To save $10,000, a homeowner must owe at least $3,333 in state income tax in each of the three years. A homeowner who owed only $2,000 in one year would lose $1,333 in tax savings that year. The unused credit cannot be used to reduce taxes owed in past or future years.

The new credit
The bill the governor signed last week, AB183, provides $100 million in credits for the purchase of existing homes and $100 million in credits for the purchase of new homes.

To make sure that credits are not left on the table, the bill lets the Franchise Tax Board award credits to at least 17,544 buyers of existing homes and at least 14,286 new-home buyers. If each of those buyers saved the full $10,000, the state would lose more than $300 million in tax revenues. Because they won't, the tax board estimates that the actual cost should be roughly $200 million - but it could be more or less.

Read the rest of the article here

By Kathleen Pender

Realty Times - Real Estate Outlook: Reading the Numbers

That's just not the way it's playing out.

When it comes to the current housing recovery, never assume the path leads straight up.

As the economic and real estate numbers this week suggest, it's more like two steps forward, one step back, one step sideways.

The new quarterly home price numbers released last week by Standard & Poor's Case Shiller index show we're headed toward gradual improvement on a national basis -- and a lot better than that in key metropolitan markets.

Read the rest of the article here:
Realty Times - Real Estate Outlook: Reading the Numbers

Rental Scams Issue Date: February 18, 2010

REFAT was established in conjunction with the Ventura County District Attorney’s Real Estate Fraud Prosecution Program. It is comprised of individuals from every aspect of the real estate community. REFAT’s mission & goals are to educate and keep both

the public and the real estate community updated on issues related to real estate fraud.

Prevent – Detect – Report

REAL ESTATE FRAUD ALERT

www.REFAT.org

Rental Scams Issue Date: February 18, 2010 v1

Summary: Unscrupulous people find homes listed for sale and post those same homes on a community posting board, like CraigsList, for what seems like an incredibly reduced rental price. The posting may have statements that sound credible to a would-be renter (i.e. Last minute job relocation, Death in the family, etc.) and urge them to send their reduced price deposit and first month’s rent to a specified address or wired to a specified account - the lease agreement to be signed later. In exchange, the key to the home will be left where the would-be renters can find it. Would be renters then send the money thinking they have rented a home.

Occupied homes for sale: Homeowners may be faced with a stranger(s) showing up to move into their home.

Vacant homes for sale: Would-be renters may not realize they’ve been scammed until a potential buyer or real estate agent shows up to view the home they’ve “rented”. In some cases, neighbors or contractors may notice that someone is on the property that shouldn’t be there and law enforcement is called to investigate.

Homeowners and would-be renters are urged to contact local police to report the crime.

Homeowners are also encouraged to notify the community posting board (i.e. CraigsList) if there is an unauthorized posting of their home for rent. They will expediently remove any unauthorized or disputed posting.

Would-be renters are encouraged to review CraigsList information on Avoiding Scams & Fraud:

DEAL LOCALLY WITH FOLKS YOU CAN MEET IN PERSON - follow this one simple rule and you will avoid 99% of the scam attempts on craigslist. NEVER WIRE FUNDS VIA WESTERN UNION, MONEYGRAM or any other wire service - anyone who asks you to do so is a scammer.

CRAIGSLIST IS NOT INVOLVED IN ANY TRANSACTION, and does not handle payments, guarantee transactions, provide escrow services, or offer "buyer protection" or "seller certification" NEVER GIVE OUT FINANCIAL INFORMATION (bank account number, social security number, eBay/PayPal info, etc.) AVOID DEALS INVOLVING SHIPPING OR ESCROW SERVICES and know that ONLY A SCAMMER WILL "GUARANTEE" YOUR TRANSACTION.

If you suspect that you, a family member, or friend has fallen victim to real estate fraud and don’t know where to turn, call Ventura County’s 2-1-1 hotline to get the referral you need to the appropriate agency. Cell phone users dial: 800-339-9597.

About The Money And Home Owner Associations

ABOUT THE MONEY AND HOA'S

If you are thinking of investing in a condominium, you should read this article.

EVERY HOMEOWNERS ASSOCIATION RECEIVES LETTERS AND COMPLAINTS REGARDING THE FINANCIAL STATUS OF THEIR ASSOCIATION. While Boards have tried to explain the "why's and wherefore's" in various communications, it still keeps coming up.

The question usually has something to do with "Where does all the money go"; or "I'm not paying for someone else's responsibility". Both of these statements are entirely understandable. While blaming everything on the economy is getting old and seems to be the scapegoat, it is entirely the problem at hand.

Unfortunately "fair" doesn't enter the picture when discussing the affect on everyone. In plain language, there are many Associations that have multiple units which have gone into bankruptcy and/or foreclosure. How does that affect you as a homeowner? Answer: These units have not paid their monthly assessments (sometimes referred to as 'dues') for in some cases as much as a year but operating money has to come from somewhere.

To protect the Association as much as possible, legal fees are encountered on top of the lack of collecting the monthly amounts. It is easy to see, the deficit adds up very quickly. In fact, for many Associations, this has totaled in the hundreds of thousands of dollars that is not collected for operating expenses. (Banks do not have to pay back-owed monies in a foreclosure situation so that income is lost by the Association and that's that.) This results in an absolute reduction in monies available to conduct and maintain the Association. In addition, certainly no deposits can be made to the Reserves (savings) for future projects.

There is often the statement made, "I'm not paying for someone else's responsibility". However, in order to maintain the value and health of a complex, all carry the load. When you own a condominium, you own a percentage of the community for which you are responsible. While the statement expresses feelings we all have, owning a portion of the entirety puts the burden on all. The remaining owners in good standing are in the position of carrying the load… or if not, becoming one of the statistics as a foreclosure, bankruptcy or lien.

So when the question is asked, "Where does all the money go?", the inference that "all the money" which is being collected by the Association is more than adequate, which is simply the opposite: It is not enough to pay all the operating expenses, which are usually cut to the bare bones, nor enough to continue to set money aside for a rainy day also known as 'Reserves", not to mention improvements.

A Board has a fiduciary responsibility of maintenance and safety within the community. When assessments are considered necessary, it is in order to perform those duties on behalf of all homeowners. The alternative is to allow a community to run down, and in so doing, everyone loses property value.

If you are considering the purchase of a condominium, it would be prudent to attend an open Board Meeting, review a full year of financial statements, request copies of six months' minutes, and review the current Reserve Study. You may want to inquire as to the total number of units that are in default. All of these documents should be made available to you once you enter escrow and your approval should be a contingency of the purchase. Once you are a homeowner and a member of an association, you may want to consider running for a position on the Board to be a part of the decision-making.

Foreclosure Vs. Short Sale

FORECLOSURE VS. SHORT SALE

KNOW THE DIFFERENCES BEFORE TIME RUNS OUT

The subjects of foreclosure and short sale often are used in real estate-related conversations as if interchangeable. Nothing could be further from the truth. If you now find yourself in default or headed for it, it’s crucial you know the differences and the impact each scenario may have on your future.

For instance…

• Did you know there are some employers who will terminate an employee who experiences a foreclosure?
• Do you know how long each of these processes will stay on your record and how badly your credit rating will be affected by each?
• Do you know that in some cases, if your employment depends on a security clearance, there is a strong possibility the security clearance will be revoked in the case of foreclosure?

These are very serious matters.

You are urged to review the attached comparison showing the potential outcome in the case of foreclosure vs. a short sale. It is easy to see that a short sale will most often have the least damaging impact on your future. However, time is of the essence as it takes a rather long period of time to negotiate and successfully conclude a short sale. In simple language, if it appears to you that you no longer can hold onto your property, don’t waste time. It is important not to let precious time get away from you.

You owe it to yourself to know the differences; the facts.

Century 21 Adobe Realty agents are knowledgeable and experienced in accomplishing successful short-sale transactions. Won’t you let our professionals guide you through each step?

For detailed comparison of the potential outcome of a short sale vs. foreclosure take a look:

As discussed, options are available to homeowners. I found the following chart at impact your sales now and it was published by the Depressed Property Institute.

One thing I would point out to you regarding deficiency judgments at the bottom of the page. My knowledge is that California uses a non judicial foreclosure process and deficiency judgments do not apply. Having said that, I am not an attorney, nor do I give legal advice. Please seek the advice of a legal or tax professional.

I should point out that the Distressed Property Institute has a disclaimer to the effect that they do not guarantee the accuracy nor will they assume any responsibility for this document. I think this is an informative guide but I would be remiss if I did not encourage you to seek legal counsel as to the recommendations or consequences in this document.

(Consumers are urged to consult legal counsel regarding all legal matters and a tax professional regarding tax matters.)

(Source: Distressed Property Institute)

Get help—before you fall behind on your FHA mortgage

NEW YORK (CNNMoney.com) -- Struggling to pay your FHA mortgage? Now you no longer have to be late with your payments to get help.

On Friday, the Federal Housing Administration announced that it will assist borrowers before they become delinquent. All you need do is prove your problems were caused by a reduction of income from a job loss, fewer paid hours, slashed wages or a decline in self-employed business earnings.

You may also qualify because of a change in household circumstances, such as a death or disability.

"The FHA has always required lenders to establish early contact with delinquent borrowers to discuss the reason for missing a payment and to evaluate reinstatement options," FHA Commissioner David Stevens said in a prepared statement. "Now servicers will have additional options for those borrowers who seek help before they go delinquent, which increases the likelihood that the borrower will be able to retain their home."

Read the rest of the article here:http://money.cnn.com/2010/01/22/real_estate/easier_FHA_help/index.htm

By Les Christie

Home loan applications jump 9% as interest rates fall

Applications for home loans jumped 9% last week as interest rates declined for all types of mortgages, falling back to 5% for 30-year fixed loans, the industry trade association reported Wednesday.

The Mortgage Bankers Assn.'s weekly survey is showing an increase in applications for both purchase and refinance loans.

The typical rate on the 30-year fixed mortgage was 5.13% the week before last, the group says. Points paid to lenders (including the origination fee) also fell on 30-year loans, from an average 1.17% of the loan amount to 1.05%. Rates also fell for 15-year fixed mortgages and for variable-rate loans.

The rates apply to borrowers with good credit and have a 20% down payment or 20% equity in the home.

Written in The Los Angeles Times

Help for Haiti

By now, we all know about the severe devastation caused by the earthquakes in Haiti. NAR is helping answer the calls for help in two key ways.

First, we are contributing $550,000 to charities that will help bring much-needed supplies and care to the people of Haiti. Included in that sum is $100,000 donated by our REALTOR Benefits® Program partner, Lowe’s®, which we have matched at $100,000. From that we will donate $50,000 to The Harvest of Haiti, founded by REALTOR® Patrick Moore, a 2007 Good Neighbor Award winner. Patrick has done great work for several years in Haiti supporting orphans, delivering clean water and providing medical care for more than 3,500 people a year.

http://www.realtor.org/press_room/news_releases/2010/01/donate_haiti

We are also contributing $500,000 to the Clinton Bush Haiti Fund, which is supporting earthquake recovery efforts with immediate relief and long-term support to earthquake survivors. For up-to-the-minute information about these efforts, visit NAR's Haiti relief page on REALTOR.org.

Second, I have asked NAR to accept donations from REALTORS® through theREALTORS® Relief Foundation. Please consider giving today. To make a donation, go to www. realtor.org/relief, and complete the contribution form.

Dr. Martin Luther King, Jr. once said: “An individual has not started living until he can rise above the narrow confines of his individualistic concerns to the broader concerns of all humanity.”

REALTORS® have earned a reputation for our compassionate work on behalf of others – both here in the United State and around the world. I hope you will join our latest efforts and bring that same compassion and hope to people who desperately need it.

-Vicki Cox Golder, CRB
2010 NAR President

Uncle Sam’s New Guide to Mortgage Shopping

Uncle Sam’s New Guide to Mortgage Shopping (Via WSJ)

Federal rules that take effect Friday, Jan. 1, mandate a standard, three-page Good Faith Estimate that urges consumers to shop around for the best loan and helps them compare lenders’ offerings. The rules are an update of the Real Estate Settlement Procedures Act, a 1974 law known as RESPA.

MAKING SENSE OF THE STORY FOR CONSUMERS

Although Good Faith Estimates have been in use for many years, there never has been a standard form required of all lenders. Under the new rules, lenders and mortgage brokers are required to give consumers the standard estimate forms within three days of receiving a loan application.

The Good Faith Estimate form requires lenders to combine all of the bank’s fees into one “origination charge,” enabling consumers to compare one lender’s fees with another’s. Lenders are prohibited from increasing the origination fee from the estimate. Some additional charges, including title services and recording charges, can increase by as much as a combined 10 percent. Estimates for other charges, such as homeowner’s insurance and other services provided by third parties selected by the borrower, aren’t subject to such limits.

A finance professor emeritus at the University of Pennsylvania’s Wharton School recommends that borrowers focus on two items as they shop: the interest rate and the “adjusted origination charge,” which includes any points paid to lower the rate.

Another change includes the HUD-1 form used by settlement firms in closings. The new HUD-1 includes a comparison of the estimated and final costs, as well as a summary of the loan terms.

To read the full story, please click here.