Watch the Real Estate Market & Latest in Corona and Inland Empire

Robert & Christy #1 Listing Agents in Corona Mountaingate Neighborhoods

2010-03-18T23:36:00.000-07:00

According to recent MLS data, Robert & Christy Thompson, Realtors from the #1 Real Estate office in Corona - "Keller Williams Realty-Corona" are the number #1 Listing agents in the Mountaingate Neighborhoods for the last 2 years for combined Standard and Short Sales listings.

When asked how they did it, Robert responded "Some of our competitive agents in the area disappeared and pursued REO accounts. We made a strategic decision to stick it out in the area we know best and the community we are proud to work in. We have always had pride in the fact we fight hard to keep home values up on the homes we list. We have consistently had one of the highest list price/sale price ratios in the area and people know that and it is one of the reasons they hire us. I see some agents are back pushing mass door hangers the last couple of weeks to get their name back out here. Well all I can say is we have never left servicing our Mountaingate community"

With bank owned homes (REOs) dominating the market in 2008 and short sales taking over the market share in 2009 it was tough listing homes in a volatile market.

Christy Thompson added "We have a slogan that we firmly believe in: "A Family Helping Families Fulfill the American Dream with Honesty, Integrity, and Twice the Service" our clients see this reflected in our work and our results show it. Since we live in the area we also have a vested interest in keeping home values up. It is disappointing at times to see agents from outside the area like Orange or LA county that do not know our neighborhoods and list the price low to get a quick sale. We just don't understand the motivation sometimes. I mean, we list numerous homes outside our area as well, however because they are either past clients or referrals we still get top dollar for their homes."

With Short Sales still being the dominate sales type in the market, there has been a big push by some agents to encourage people to short sale their home and using questionable tactics to do so.

Robert added, "It really comes down to the owners motivation. If they prefer to stay in their home, their are definitely ways to help them. What is discouraging is some are coerced to short sale by questionable means. We know of instances where agents have told them they are representing or hired by the banks to do a short sale and that they cannot do a short sale with anyone else, and this is simply not true. We wrote in our blog last week on issues regarding short sales and homeowners who have Notice of Defaults filed and encourage anyone who is considering a short sale to read it here. "

Help! People keep calling me because I'm behind on payments!

2010-03-10T12:09:00.000-08:00

"Help!! People keep calling me because of I am behind on my mortgage payment(s) and a Notice of Default (NOD) has been filed!
What do I do?,
How did they get my number?
Why do they keep knocking on my door?"

These are common questions we receive, especially lately. With record unemployment, increasing layoffs/furloughs, and a tough economy all of which have contributed to a record number of Notice of Default (NOD) filings. Although there doesn't seem to be any consistency on when an NOD is filed, it can be filed when a homeowner is 30, 60, or 90 days delinquent on their home.

If you are a homeowner that has an NOD filed and your intent is to stay in you home, do not ignore the problem of your mortgage lates. Make sure you are proactively communicating with the lien holder(s) on what your intent is.

If you have an NOD filed and you are getting people calling or knocking on your door and they may be telling you that you are going to lose your home. As with everything, the reason they are contacting you is their motivation. They may be coming to you out of sincere contribution. They may be coming to you to solicit business, either by listing your house for a short sale, performing a loan modification for a fee, or from legal personnel, encouraging you to file for bankruptcy.
How did these people get your number or address? There are a variety of websites and companies that search for NOD filings and they charge a fee to provide this information to anyone willing to pay for it.

It seems the overriding factor related to this subject in these tough economic times is every little button that gets pushed adds a level of stress to yourself, your family, friends, and coworkers around you. In tough times it is important to have someone to lean on, to help hold you up and provide encouragement. Whether it is family members, friends, or church members, make sure you have some level of support.

Robert and Christy are also a source to lean on, to get professional advice and direction from. Our slogan of A Family Helping Families Fulfill the American Dream should be updated to include And To Help Stay in Your American Dream Home. We are in the business of helping people. Our desire is to develop long-term relationships and hopefully get a few dozen referrals from you and if the need requires to assist you with any real estate required services.

Although we do successfully list and sell short sales, we only do so at the requirements of our clients wishes. More often than not, we meet with someone who is in a NOD status who wants to stay in their home. We can provide sound, professional advice and direction and can help hold off the barrage of calls and and door knocks. We obviously do not charge for this because we sincerely want what you want. A Win for you is a Win for us. Again, hopefully we will get a referral from you and can assist you with a real estate transaction when it is required.
We can be reached at 951-271-3068. Give us a call so we can help.

God Bless,
Robert and Christy

FHA Waives 90 Day Flip Rule

2010-01-19T00:16:00.000-08:00

GREAT NEWS!! FHA Federal Housing Commissioner David H. Stevens waived the 90 day flip rule for 1 year.
This is GREAT news for Investors and Buyers.
Previously if an investor purchased a property, a buyer with a FHA loan was not allowed to purchase the property until the 91 day. This rule was always a burden for the typical First Time Home Buyer because they were not allowed the opportunity to purchase the property within the first 90 days.
With Inventory so low and a large pool of buyers and everyone bidding on the few properties that are available it didn't seem like the FHA buyers had a fair shake at purchasing properties. Investors also suffered by having to sit on properties for the 90 days which increased their holding costs and also hindered the investor on purchasing other properties to fix up and resale as a result.
This waiver will help many home buyers find affordable housing and contribute to the stabilization of neighborhoods hit hard by foreclosures.
The waiver, which takes effect Feb1, 2010 is limited to the following conditions:

All transactions must be at arms-length, with no identity of interest between buyer and seller or other parties participating in the sale.
Certain conditions are required if the sales price is 20% or more above the seller's acquisition cost. (see details at the link below)
The waiver is limited to forward mortgages and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

For details on those conditions and further information directly from the source at HUD, go to the link at our Corona Real Estate and Inland Empire Real Estate website: Robert and Christy Real Estate Investor Help

Corona Real Estate Home Values Increase

2010-01-14T13:33:00.000-08:00

Corona Home values increased in 2009. In this crazy marketplace with all the negative news on the real estate market with foreclosures and short sales looming everywhere, this information is a breath of fresh air.
A far cry from the tremendous decrease in values over the past few years (although most of us agree homes were over inflated anyway) seeing that home actually INCREASED in value over the past year gives a ray of hope for existing home owners.
The numbers were run on Terradatum's Broker Metrics, a product which it obtains directly from the MLS. Single Family Detached homes in Corona, CA INCREASED 16% from Jan 2009 to Dec 2009.
From a Buyer perspective, this number can be very frustrating. Most buyers had a very difficult time purchasing a home in the last half of 2009. With inventory (homes available for sale) decreasing every month in last half of 2009 and a large supply of buyers resulted in Multiple offers on most properties which in turn was a contributing factor in the increase in pricing.

Typical economics, decreasing supply and high demand will drive prices up. Although pricing may be dancing slightly up and down over the next year, banks will be the biggest contributor to the rise and fall of prices. After what they have done to the market thusfar, that is a really scary factor. Let's pray they do not raise interest rates to high and to fast or start foreclosing on homes in the rapid fashion that they did in 2008.

To view the statistics click on this hyperlink Corona Real Estate Home Values

For further information on the market and obtain additional market statistics go to our website http://www.RobertandChristy.com .
If you do not live in Corona and would like home values on your home or market statitics for your city or neighborhood, let us know we would be happy to help.

God Bless,
Robert & Christy

Red Flags for Foreclosure Rescue Scams

2010-01-04T19:56:00.000-08:00

With the recent rise in foreclosures, foreclosure-related scams have exploded onto the real estate scene. These so-called “foreclosure rescue companies” claim they will help save your home, but in reality are out to make a profit -- at your expense.

If you are at risk of or in foreclosure, you should be on the lookout for foreclosure scams. Here are some of the red flags to watch out for:

• Asks for money upfront before providing any service
• Instructs you not to contact your lender, lawyer, housing
counselor, family, friends, or others
• Asks for mortgage payments to be made directly to his or her
company or a bank account set up by that person, rather than
your lender.
• Requires payment only in the form of cash, cashier’s check,
or wire transfer
• Promises to stop the foreclosure process, no matter the
circumstances
• Advises you to transfer your property deed or title to his or
her company
• Offers to fill out paperwork for you
• Asks for something to be done immediately and without delay.
This includes pressuring you into signing paperwork that you
have not had the chance to read thoroughly or do not fully
understand
• Encourages you to lease your house and buy it back
over time
• Offers to buy your house for a fixed price that is not set by the
housing market at the time of sale
• Asks for you to give a power of attorney
• Asks for signatures on a grant deed or deed of trust
• Asks for signatures on a document that has lines left blank
• Fails to provide copies of signed documents
• Refuses or fails to put an oral promise in writing

If you have been a victim of a foreclosure-related scam or approached by a scam artist, go to our website at this location http://www.robertandchristy.com/1069654.html for information on organizations or government enforcement agencies that may help. We also have other resources listed to help you if you need help with the foreclosure process.

New Loan Disclosure Rules

2010-01-04T17:57:00.000-08:00

If the APR on an initial Good Faith Estimate is no longer accurate (within a 0.125% range) at close of escrow, a lender must generally provide a residential borrower with a new disclosure and a three-day right to rescind before consummating the loan. Because of this new three-day waiting period, a lender's failure to timely provide corrected disclosures has the potential of delaying funding of the loan and close of escrow.

This new requirement is part of the Mortgage Disclosure Improvement Act (MDIA) implementing new loan procedures to protect borrowers and foster greater transparency in mortgage lending. For loan applications submitted on or after July 30, 2009, the new MDIA changes to the Truth In Lending Act are generally as follows:
Applicability: The new MDIA rules pertain to federally-related mortgage loans covered under RESPA and secured by a consumer's dwelling. The rules apply to both purchase and refinance loans.
Early Disclosures: A lender must provide a borrower with an initial Good Faith Estimate within three business days of receiving the borrower's written loan application as specified. For this provision, a "business day" is generally defined as a day on which the lender's offices are open for business.
Upfront Fees Restriction: Neither a lender nor any other person may impose an upfront fee on the borrower (except for credit report) until the borrower has received the early disclosures in person or, if mailed, three business days after the early disclosures are mailed. For this rule, a "business day" is defined as all calendar days except Sundays and legal public holidays as specified.
Seven-Day Waiting Period: A lender must wait seven business days after providing the early disclosures before consummating the loan. For purposes of this waiting period, a "business day" is defined as all calendar days except Sundays and federal legal holidays as specified. A borrower may waive the waiting period in writing in case of personal financial emergency, such as an imminent foreclosure sale.
Re-disclosure Requirement: If the final Annual Percentage Rate (APR) at loan consummation varies more than 0.125% (or 1/8 of one percent) from the initial APR on the early disclosures of a regular transaction, the lender must provide the borrower with a corrected disclosure at least three business days before the loan is consummated. For purposes of this waiting period, a "business day" is defined as all calendar days except Sundays and federal legal holidays as specified.
Three-Day Waiting Period: For corrected disclosures, a lender cannot consummate a loan until three business days after the the borrower receives the corrected disclosure in person. If the corrected disclosure is mailed, the borrower is deemed to have received it three business days after it is placed in the mail. A borrower may waive this waiting period in writing in case of a bona fide personal financial emergency, such as an imminent foreclosure sale.
If you are a Buyer and need further information visit our website at http://www.RobertandChristy.com/BuyerAssistance.html

The new MDIA rules and regulations are set forth at 74 Federal Register 23,289 (May 19, 2009) (to be codified at 12 CFR 226).
Information provided by California Association of Realtors. Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Stimulus update

2009-03-09T01:08:00.000-07:00

Ok,
Here is the latest on the foreclosure prevention plan from D.C.:

Eligibility for refinancing incentives is limited to home owners who are underwater by no more than 5 percent.
Financial incentives apply only to home owners whose mortgage is a conforming loan backed either by Fannie Mae or Freddie Mac.
Lenders participate voluntarily and can receive financial incentives for lowering borrowers' mortgage burden to no more than 31 percent of their household income. Borrowers can get a financial incentive to participate as well.
Borrowers who are current can participate, but they must show approaching hardship that could derail their ability to meet payments in the future.

Need more information?

Go to our website http://www.robertandchristy.com/ and click the tab "Homeowners Assistance" then on the left click "Save My Home", we have articles on Loan modifications, how to handle pre-foreclosure issues, and more information.

God Bless!

Robert & Christy

An update on Whatsupp

2009-02-26T10:12:00.000-08:00

Ok, its been awhile since we've blogged. Been working with a lot of Buyer's and have been very busy. So we've thought we share with you "Whats up" in the local market.
Despite what you read, in our local Market of Corona, Norco, Riverside, Chino, Chino Hills, etc. has very:

Low Inventory (Homes For Sale)
This has resulted in Multiple Offers.

In Corona, Homes have been going for 1%-3.5% above asking price (data compiled from MLS for homes priced under $400k).

Corona's Down Payment Assistance Program
Although they haven't actually closed a deal yet on any homes that have used this program incentive, this last weekend at a seminar the city stated that the funds for this program are almost all allocated. The buyers who have the funds allocated have 45 days to find a home.

Stimulus
Lenders have tough new rules and are trying to figure this out themselves.
The biggest Alert is:
Under the new guidelines, buyers with down payments of less than 25 percent will be charged a three-quarter point add-on penalty, no matter how high their credit score. This is beginning April 1.

Temporary Suspension of CALHFA Programs

2008-12-22T11:24:00.000-08:00

The following information is from CALHFA.
If you need down payment assistance or any other buyers assistance please contact us.

Temporary Suspension of CalHFA Programs
Effective immediately, CalHFA is suspending the following active CalHFA First Mortgage Fixed
Rate Loan Programs and Down Payment Assistance Programs:
• 30-Year Fixed Mortgage products, including:
Moderate Income
Low Income
Nonprofits & Affordable Housing Partnership Program (AHPP)
Extra Credit Teacher Program (ECTP)
• California Homebuyer’s Down Payment Assistance Program (CHDAP)
• Extra Credit Teacher Program (ECTP)
• School Facility Fee Down Payment Assistance Program (SFF)
These programs are being temporarily suspended as a result of the action taken by the Pooled
Money Investment Board (PMIB) on December 17, 2008. The PMIB loans money to state
agencies to advance program funds which will later be repaid through bond issuances. CalHFA
uses a PMIB loan to initially fund its Conventional 30-Year Fixed Mortgage and down payment
assistance programs. The recent PMIB action froze all such PMIB loans. It is anticipated that
this situation will continue until the State’s budget crisis is resolved.
The PMIB will meet again in early January, 2009. At that time, we may receive information as to
when these programs will be restored.
CalHFA will continue to accept reservations for loans under the Community Stabilization Home
Loan Program (CSHLP) and SMART Loan Program. However, please note that CHDAP funds
will not be available for use with these programs.
CalHFA’s Homeownership Division thanks you for your business and we look forward to
continuing to support your affordable housing loan needs. For questions about this bulletin,
contact CalHFA Homeownership Programs by phone 916.324.8088; by fax 916.324.6589; by
email at homeownership@

Another Bailout?

2008-12-02T22:02:00.000-08:00

Okay,
I couldn't resist posting this. This is one of those emails that gets sent around so I don't know who the author is. However is so apropos for what is happening right now and any of us who have worked in business can surely relate to the possibilities of truth to this story as it is sadly humorous;

Toyota and Ford - Canoe Race on the Missouri River

A Japanese company (Toyota) and an American company (Ford Motors) decided to have a canoe race on the Missouri River both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 7 people steering and 2 people rowing.

Feeling a deeper study was in order; American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team’s management structure was totally reorganized to 4 steering supervisors, 2 area steering superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 2 people rowing the boat greater incentive to work harder. It was called the ‘Rowing Team Quality First Program,’ with meetings, dinners and free pens for the rowers. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses. The pension program was trimmed to ‘equal the competition’ and some of the resultant savings were channeled into morale boosting programs and teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid-off one rower, halted development of a new canoe, sold all the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses.

The next year, try as he might, the lone designated rower was unable to even finish the race (having no paddles,) so he was laid off for unacceptable performance, all canoe equipment was sold and the next year’s racing team was out-sourced to India.

Sadly, the End.

Here’s something else to think about: Ford has spent the last thirty years moving all its factories out of the US , claiming they can’t make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter’s results: TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.

Ford folks are still scratching their heads, and collecting bonuses…and now wants the Government to ‘bail them out’.

700 Billion dollar bailout

2008-09-24T22:34:00.000-07:00

Today, the Senate Banking, Housing, and Urban Affairs Committee held a hearing to discuss the U.S. Dept. of the Treasury’s proposal to stabilize the U.S. financial system. The panel consisted of Treasury Secretary Henry Paulson; Federal Reserve Chairman Ben Bernanke; Christopher Cox, chairman of the Securities and Exchange Commission; and James Lockhart, director of the Federal Housing Finance Agency.

Now that Congress has had a chance to dissect the Treasury proposal, we’re seeing pushback to the plan in its current form from both sides of the aisle, and this was evident during today’s hearing. Members of Congress are asking for several additions or refinements to the proposal, including:

- Legislation to help homeowners avoid foreclosure;
limiting compensation to executives of troubled firms receiving assistance;
- greater oversight than the limited bi-annual reporting mechanism in the current proposal;
- allowing the government to take an ownership stake in companies;
- decreasing the timeframe for the Treasury workout from two years to one; and
- limiting the initial outlay followed by a reassessment early next year prior to deploying additional resources.

With the general election in November a little more than a month away, there also is a certain amount of to-be-expected political posturing going on this week. Members of Congress will soon return to their home districts for recess and will be expected to explain their positions to constituents. However, some of the pushback is philosophically driven from both liberals and conservatives in both parties.

Corona City Council Down Payment Assistance

2008-09-17T16:15:00.000-07:00

Amidst all the banking and lending turmoil, The Corona City Council is considering offering Down Payment Assistance to Corona residents. The Corona Redevolpment Agency is onsidering offering $1.5million in interest free loans for First Time Home Buyers.

We view this as a great step to helping Corona Families purchase one of the hundreds of vacant homes in Corona due to all the foreclosures. As of today, there are 523 homes under $300,000 compared to under 50 a few years ago. We believe this will be a great catalyst to the Real Estate Market in Corona. Although we think the Market is doing Great right now with Supply of Homes the lowest since spring of 2005 and the Sale of Homes the highest since the same time period.

They also offer a great incentive to keeping the buyer to stay in the city for up to 7 years. This allows the resident to get established in this great city. To qualify, buyers must meet income guidelines, be able to pay 3 percent of the home's value, and live in the home at least seven years or pay the city a share of any profits if they sell.

One of the main questions we have is how FHA will handle this Down Payment Assitance from Corona. FHA announced a few weeks ago that they will no longer consider Down Payment Assistance for FHA loans.

We will all have to stay tuned...

Click here to learn more fron the Press Enterprise article

If you are a First Time Home Buyer, please visit our website RobertandChristy.com and click on the Buyers Assistance tab for helpful information on buying a home.

Take care everyone and have a Blessed Day!
:)

Mortgage Rates DROP below 6%

2008-09-13T01:52:00.000-07:00

Mortgage Rates Drop Below 6%

For the first time since early spring, mortgage rates have fallen below the 6-percent threshold.

Freddie Mac reports that 30-year fixed loans came in at an average of 5.93 percent this week, down from 6.35 percent a week ago and 6.31 percent at the same time last year.

A borrower taking out a $200,000 mortgage at 5.93 percent would pay $1,190 for monthly principal and interest payments, which is $54 less than the payments on last week's rate.

"Consumers see a five in front of mortgages, and they get excited," says Keith Gumbinger, a vice president at research firm HSH Associates.

Source: The Washington Post, Dina ElBoghdady (09/12/08)

Corona & Riverside to clean up Vacant Properties

2008-09-10T22:08:00.000-07:00

Finally!!!
Code Enforcement for Vacant Properties:

A new state law in effect now gives cities and counties the ability to enforce codes and fine lien holders of vacant property. The cities of Riverside and Corona are issuing citations to force the properties to be cleaned up and repaired.

The County of Riverside has a new ordinance that forces all lenders to maintain and repair all property. If not completed in a timely manner the County will send a crew out to clean up and then will put a lien on the property.

Let's hope the banks will take responsibility on this one and not force the real estate agent to pay for the home the bank's own. It's pretty sad driving down the street and viewing all the dead lawns and trashed properties.

Housing & Economic Recovery Act

2008-07-31T14:53:00.000-07:00

Higher permanent loan limits for conventional conforming and FHA will become effective Jan. 1, 2009; the Act calls for limits to increase to a maximum amount of $625,500, depending on the metropolitan area. Note: The temporary limits established in March will expire on Dec. 31, 2008.

§ FHA floor limits will remain the same at $271,050.

§ The VA guaranty will increase.

§ Minimum cash investment for FHA loans will increase to 3.5%.

§ A moratorium on risk-based pricing for FHA loans will go into effect Oct. 1, 2008.

§ Seller-funded Down Payment Assistance Programs with FHA loans will be terminated Oct. 1, 2008.

§ Condo processing for FHA loans will be streamlined.

§ FHA reverse mortgages (HECM): changes, among others, include higher loan limits, availability with purchase transactions, and a modification to the origination fee.

FHA lifts 90 day flipping rule on foreclosed homes

2008-06-16T18:06:00.000-07:00

HUD has announced that in order to help foreclosed properties be immediately marketable they will lift the 90 day flipping rule for the term of one year.

This allows properties marketed and sold by property disposition firms on behalf of lenders to be sold without the 90-day waiting period.

This does not include properties which have transferred to others in non-foreclosure transactions.

The news release is available for viewing at www.hud.gov/news/.

Senate Passes Stimulus Package -- Final Bill Includes Increased Loan Limits

2008-02-07T16:44:00.000-08:00

Senate Passes Stimulus Package -- Final Bill Includes Increased Loan Limits

Thanks in part to the lobbying by C.A.R. and NAR members; the Senate passed their version of an economic stimulus package on Thursday, February 07, 2008. The Senate version expands rebate checks for seniors and disabled veterans and includes the same increases to the conforming loan limits for both GSE and FHA found in the House stimulus package. The House has already announced that they plan to vote on the Senate version of the stimulus package and expect to quickly pass the stimulus package with a bipartisan vote. The President is expected to sign the legislation early next week, ahead of the Congressional self-appointed deadline of February 15th. The increase in the conforming loan limits will last through 2008, but C.A.R. and NAR continue to lobby for FHA and GSE reform, making these increases permanent.

The U.S. House of Representatives passed a stimulus package last week that raised the FHA and conforming loan limits to as high as $729,750 in high-cost areas. By increasing the loan limits, borrowers will see immediate relief with new liquidity in the mortgage market and the nation will see an additional 300,000 home sales. Research shows that an increase in the FHA limit would enable an additional 138,000 Americans to purchase homes, and 200,000 families to refinance their homes safely and affordably.

Increasing the FHA loan limits is critical to bolstering California’s housing market. Current law restricts FHA loans to levels well below the median home price in many areas of the country and caps loans in high cost states at $363,790. These limits are preventing many homebuyers from using FHA to purchase or refinance their loan. The proposed provision will increase FHA loan limits nationwide by raising the floor to $271,050 and the limit to 125% of local median home prices.

Additionally, raising Fannie Mae and Freddie Mac’s (GSEs) conforming loan limit will provide immediate relief to borrowers and alleviate downward pressure on current housing markets. For instance, increasing the GSE loan limit could result in more than 300,000 additional home sales and strengthen current home prices by 2-3%.

The critical role that GSEs play in providing liquidity to the mortgage market has never been more evident than it is today. The national subprime meltdown has had a dramatic impact on both the cost and availability of mortgages in many markets. Since August 2007, the interest rates for jumbo borrowers have been more than 1 percentage point higher than conforming loans, which can cost homeowners up to $400 month in higher interest payments.

Bank Owned Property - Open House Saturday Only!

2008-01-31T13:12:00.000-08:00

REO Bank Owned property.

This lovely 4 Bedroom home has New Carpet, New Paint, New Dishwasher, New Range/oven, and New Microwave. This home also contains and upgraded kitchen with Granite countertops and Tile floors. The family room contains a a fireplace. Formal Dining Room and Living Room with cathedral ceilings. Bedrooms have ceiling fans. The backyard has block wall, covered patio, relaxing above ground spa and no rear neighbors. Located in a low tax area and in a nice neighborhood this home contains a 3 car tandem garage with storage cabinets. The bank priced this one to sell!

Call 1-800-385-9140 ext 2096 for proper forms to make offer.

POSSIBLE INCREASE TO THE CONFORMING LOAN LIMITS

2008-01-28T20:42:00.000-08:00

On January 24, 2008 House Speaker Pelosi (D-CA), House Minority Leader Boehner (R-OH), and Treasury Secretary Paulson announced a bipartisan deal on an economic stimulus package. After heavy lobbying by C.A.R. and NAR, included in the House economic stimulus package is an increase in the loan limit for Fannie Mae, Freddie Mac, and FHA.

There is still not a clear consensus on how high the GSE conforming loan limit increase will be. There have been rival press releases, with Speaker Pelosi saying the cap would be at $729,750 and Minority Leader Boehner saying the cap would be at $625,000. Either way, the GSE loan limit would be increased to 125% of a Metropolitan Statistical Area (MSA), with the cap either at $625,000 or at $729,750. As of now, no legislative language has been formalized or released, so C.A.R. is unable to have a definitive GSE cap figure.

Additionally, the FHA reform included in the stimulus package is expected to be permanent, including an increase in the FHA loan limit to $729,750, and a decrease from the current 3% downpayment required; however, at this time we have not heard whether it will be reduced to 1.5% or 0%. The GSE loan limit increase would be temporary, most likely only until the end of 2008. In the meantime, C.A.R. will continue to lobby for permanent GSE reform which would include an increase in the conforming loan limit for high-cost areas, such as California.

The House is expected to vote on the economic stimulus package on January 29, 2008 and the Senate has expressed their interest to introduce and vote on their version of an economic stimulus package shortly thereafter.

Tax Break for Mortgage Debt

2008-01-27T23:29:00.000-08:00

President Bush signed into law a new measure giving tax breaks to homeowners who have mortgage debt forgiven. Under preexisting law, the debt forgiven by a lender, such as for short sales and refinances, was generally taxable to the borrower as debt discharge income. With the passage of the Mortgage Forgiveness Debt Relief Act of 2007, a taxpayer does not have to pay federal income tax on debt forgiven for a loan secured by a qualified principal residence.
This tax break applies to debts discharged from January 1, 2007 to December 31, 2009. Qualified principal residence indebtedness is debt incurred in acquiring, constructing, or substantially improving the residence (up to $2 million for refinances).
For purposes of calculating capital gains, any debts discharged excluded from income under the new law must be subtracted from the basis of the taxpayer’s principal residence (but not below zero). However, taxpayers may generally exclude from capital gains income up to $250,000 (or $500,000 for married couples filing jointly) for properties owned and used as their principal residence for at least two of the last five years.
This is great news for homeowners who have gone through either a short sale or deed-in-lieu of foreclosure. Prior to this act, not only did the homeowner not have enough equity to sell their home and took a big hit on their credit score, but they were taxed on the differential between what they owed on the house and what it sold for (because it was treated as income). Now they can at least know that Uncle Sam will not come after them to pay taxes on that differential.
For a copy of the Mortgage Forgiveness Debt Relief Act of 2007, go to http://www.govtrack.us/congress/bill.xpd?bill=h110-3648.

Special Alert - Suprise Fed Cut

2008-01-23T11:09:00.000-08:00

Fed Surprises with Deepest Cut since 1984
The Federal Reserve surprised everyone Tuesday with an emergency intersession rate cut of .75%, the deepest cut in the Fed Funds Rate since 1984. The Fed Governors are acting in direct response to recent reports that the country is on the brink of recession.
If you have credit cards, auto loans, HELOCs, or an Adjustable Rate Mortgage, the Fed's decision to cut this key interest rate is great news. For long-term mortgage rates however, this could signal the beginning of the end for the lowest 30-year home loan rate borrowers have experienced since 2005.
Let's look at the impact of a few recent Fed Funds Rate cuts and the corresponding impact to home loan rates to see what this could mean for you:

Period

Period	Fed Funds Rate Cut	Impact to Home Loan Rates
January to June 2001	Down 2.25%	Rose 0.10%
October to December 2001	Down 0.75%	Rose 0.45%
May to August 2003	Down 0.25%	Rose 0.78%

Rates are predicted to be cut again when the Federal Reserve meets at the end of this month. Many believe Tuesday's action was taken because of a dramatic downturn in the stock market, where the Dow dropped 464 points, the worst single day drop since September 11, 2001. Since the Fed's announcement, the Dow has recovered much of those losses but volatility is likely to remain a consistent theme throughout the week.
If you are waiting for long-term mortgage rates to fall further from here, don't count on it. Your best chance to lock in the lowest mortgage rates since 2005 is now. Getting your application in process will allow you to capture a rate near all time lows and, with many experts predicting home values could continue to decline, waiting could kill your chance to capture a great rate if your home doesn't appraise.
This is an unprecedented market and things are moving fast. Regardless of your current mortgage, please give me a call so that we can review your current financial situation in light of these market movements.

vFlyer widget

2007-11-06T16:09:00.000-08:00

How to opt-out of Catalog Junk Mail

2007-11-06T00:57:00.000-08:00

Ok. I am a little green and I guess that is my motivation for this post. However, it is a productive thing as well.
So there it is, I can not only be environmentally friendly but productive also. I am talking about eliminating all the junk catalogs we receive. I saw a simple post on a great environmental blog by Jennifer Bowles from the Press Enterprise. Her Blog http://www.beloblog.com/Pe_Blogs/environment/ had a recommendation for opting-out of paper heavy catalogs. What a great idea. Christy and I have this issue with catalogs and mail. It is a challenge for us to throw this stuff away. We want to read some of them, however they just keep stacking up and cluttering our desk.

What’s the saying with mail? “Touch it once…”. If I’d only learn…

Well, we’ll touch it numerous times before it ends in the wastebasket. So this idea works for me. If I can eliminate the source of the problem (the catalogs) then I can not only save a few trees, but be a little more productive and have a less messy desk.

There is a free online service called http://www.catalogchoice.org/ that will contact these companies that send the catalogs to you and have them stopped. I tried it and it only took a few minutes.
According to the groups that sponsor this project, 19 billion catalogs are mailed to American consumers each year. They said that translates into 53 million trees and 3.6 million tons of paper.

Robert
http://www.robertandchristy.com/

Be Prepared for a Disaster - Home Inventory

2007-10-29T00:44:00.000-07:00

Be Prepared with a Thorough Home Inventory
As we are reminded by the devastating fires in California, a disaster can strike at any time. Being prepared with a home inventory is an important step in preparing for the unexpected. Download this free software program...

Put yourself to the test. Could you make a list of everything in your home from memory, without going room by room? Most of us would answer no, which is why a Home Inventory is such a necessity. When a natural disaster or burglary occurs, your insurance company will require documented proof of possessions that are stolen, damaged or destroyed. They will want an itemized list which is not easily created, especially during a crisis.

As daunting as it may seem, preparing your home inventory can be quite simple with the right tools. Paper and pen is one option, but inventory software is an excellent alternative. The Insurance Information Institute offers home inventory software called Know Your Stuff (http://www.knowyourstuff.org/). This software is not complicated to use and even makes creating a home inventory enjoyable. It contains an inventory wizard along with the ability to store digital or scanned photographs and receipts. Once you have completed your inventory, it is easy to keep your information up-to-date and maintain an accurate record of all your possessions.

Keep in mind, after creating your home inventory you can store a copy of the file and all receipts at another location such as a relative or friend’s home or in your safe deposit box. An even better option is to store your information on a secure server at Secure Swiss Databank (http://www.vault24.com/public/product.php) where you can access it day or night. In the event your home is destroyed, you will have peace of mind knowing you can access your inventory list from a remote location and you’ll be sure to have something to give your insurance representative if your home is damaged or destroyed.

Robert & Christy Thompson

Realtors-GRI serving Corona and Surrounding Inland Empire Communities

http://www.robertandchristy.com/

Is Corona going to evacuate due to Fire?

2007-10-26T14:46:00.000-07:00

Here is the latest on the Fires - From City of Corona

Updated: 10/28/2007 at 12:00 PM
The fire suppression efforts on the Santiago Fire continue. The firefighters are making great progress. There was no movement of the fire over night and the weather continues to cooperate with the effort. You may see air craft supporting the effort and there will continue to be smoke that may be visible for the next several days. Please don?t be alarmed by this activity. There is no direct or imminent threat to the City of Corona. The Corona Fire Department remains committed to the firefighting effort and are directly involved in supporting that effort to protect our community.

Santiago Fire Update
Updated: 10/26/2007 at 2:00 PM
The City of Corona is continuing in its efforts to keep the residents informed on the current situation of the Santiago Fire in Orange County. The Corona Fire Department is working closely with Regional Fire Officials to provide everyone with updated information as it becomes available. Today you may see a significant amount of firefighting resources moving towards the east side of the fire including firefighting aircraft in efforts to hold the fire at the County line.

The Santiago Fire does not pose an immediate danger to Corona, specifically the resident's of the Eagle Glen area. In the event that conditions change the fire department will inform citizens of the potential impacts and the appropriate actions to take.

The Fire Department continues to remind our citizens that they should always have their own family emergency evacuation plan and preparedness kit for any emergency.

For updated information throughout the weekend, the Hotline number will continue to be staffed by personnel to keep everyone in the City of Corona informed on any changes in the current status in the progress of the Santiago Fire.

The number is (951) 817-5800. Additionally, anyone living outside the boundaries of the city, in the Riverside County area, may obtain information by calling (951) 940-6985 or 211 for Riverside County Residents.

Both the Corona Fire and Police Department's will be deploying additional staff over the weekend in the Eagle Glen area of Corona.

A Town Hall Meeting will take place on October 26, 2007 at 4:00PM at the Temescal Valley Elementary School located at 22950 Claystone Ave., Corona 92883. This informational meeting is being held as a service to citizens living in the affected area of fire activity in Orange County.

We will keep this updated as things develop.

God Bless,

Robert & Christy

http://www.robertandchristy.com/

Latest on SoCal Fires

2007-10-25T15:18:00.000-07:00

The latest Info is here:
Please click on the link for Fire evacuation & Shelter Information, courtesy KFI640am. http://www.kfi640.com/cc-common/news/sections/newsarticle.html?feed=153218&article=2817933 Our son, got evacuated from his school, Cal State San Marcos, in North San Diego County. He also got evacuated from his house in Rancho Bernardo. Needless to say we are a little nervous….. We hope the link will help any of you who need further information.
http://www.robertandchristy.com/

Is it a Good Time to Buy? Credit Scores Matter

2007-10-23T22:46:00.000-07:00

If you are debating if it is a good time to buy, consider your credit score. Guidelines have tightened up.

Personally, we are not big fans of FICO scores. Example, consider the person who has been paying their bills, maybe not always on time, but they eventually get paid. Then something tragic happens in their family. They maybe not able to make ends meet during the crisis but always come through. FICO will shred this person. Does this mean they will not pay their bills when they get over the crisis? No. Life just through a left hook and they are recovering. However FICO loves to throw salt in the wound. Makes them feel like a fish out of water.

All that aside, It is absolutely necessary to get your credit score up high to score a decent rate on your home.

Travis Black, our recommended lender gave us the following information on Understanding Credit Scores:

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual’s sense of financial responsibility and ability to pay back loans.
There are many quick ways to improve your credit score, but it may not always be the way you think. Closing a rarely used credit card with a good pay history may actually lower you credit score. Before making any changes, consult with a credit or lending professional.

Travis BlackBroker/OwnerFirst Choice Mortgage
(909) 203-5900 http://www.yourfirstchoice.com/
http://www.robertandchristy.com/

The Latest on SoCal Fires

2007-10-22T14:04:00.000-07:00

The latest Info is here:

Please click on the link for Fire evacuation & Shelter Information, courtesy KFI640am. http://www.kfi640.com/cc-common/news/sections/newsarticle.html?feed=153218&article=2817933

Our son, got evacuated from his school, Cal State San Marcos, in North San Diego County. He also got evacuated from his house in Rancho Bernardo. Needless to say we are a little nervous…..

We hope the link will help any of you who need further information.

http://www.robertandchristy.com/

When the Real Estate Market Bottoms out - Buy Now

2007-10-18T02:00:00.000-07:00

Are you a buyer waiting for the “bottom” of the market? First of all, how do you know when we’ve hit “bottom”? We don’t. We only know the bottom was reached when prices start coming back up. Then it’s too late. And what makes prices start to increase? A lack of inventory sufficient to take care of the demand (basic supply and demand principle). So really, isn’t it better to buy when the interest rates are low, the inventory is high (lots of choices), and there are people who are willing to take less than the market might otherwise bear?

So what is the prediction? Economists are saying prices in Riverside County might drop 7-9 percent. So, if that’s true, if you were to buy today, offering 7-9 percent less than the market value of a house that you like (because there are so many to choose from), you are likely buying at the bottom, right? How about if you offered 10 or 11% less? Now you’re getting a screaming good deal. Those deals are out there. We have recently seen banks accept offers as much as $100k less than listing price.

Buyers, you may need to make a few offers before you find that desparate seller or bank willing to accept a low offer. But what’s the harm in trying?

When asking people how do they know when the market has hit bottom, the typical response is the newspaper. However, do you follow the newspaper to make stock market decisions? The typical answer is “no, by the time it’s in the paper, it’s too late”. That’s also true of real estate. Don’t follow the newspaper, follow a real estate professional. We know the real story. Cha-ching!