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San Rafael Real Estate Market Report

Posted on March 30, 2009 by Ginger Wilcox

This market profile is a snapshot of what is happening in San Rafael. Home prices have climbed in recent weeks. The days-on-market has been decreasing  but listing inventory has been trending up.  The San Rafael Market Action Index has been flat, not providing a strong indication of conditions for the San Rafael real estate market.

san-rafael-real-estate-market-report

San Rafael Real Estate Market Update

There are currently 174 homes* for sale in San Rafael, Calfornia. There are 47 homes under contract.
(*single family)
Median List Price $834,500
Highest Priced Home in Greenbrae (single family) $6,500,000 1677 Lucas Valley Road, San Rafael
Lowest Priced Home in Greenbrae (single family) $349,000 117 Auburn Street, San Rafael
Asking Price per Square Foot $442
Average Days on Market 135
Percent of Properties with Price Decrease 42%
Percent Relisted 4%
Median House Size (sq ft) 1,959
Median Lot Size 8,0001-10,000 Sq Feet.
Median Number of Bedrooms 4.0
Median Number of Bathrooms 2.0
Market Action Index 13 – Cold! Buyer’s Market

The Market Action Index answers the question: “How’s the San Rafael Real Estate Market?” By measuring the current rate of sale versus the amount of inventory. Index above 30 implies seller’s market conditions. Below 30, conditions favor the buyer.

San Rafael Real Estate Market Data effective as of March 30, 2009. Data provided by AltosResearch and Bay Area Real Estate Information Services, Inc. Are you a Marin real estate junkie? Sign up to receive very detailed real-time market reports in your email. Just register and let me know which neighborhoods you are interested in. Download a sample report.

Novato Real Estate Market Report

Posted on by Ginger Wilcox

This market profile is a snapshot of what is happening in Novato. Home prices have climbed in recent weeks. The days-on-market and the listing inventory have been decreasing while the Novato Market Action Index has been flat, not providing a strong indication of conditions for the Novato real estate market.

novato-real-estate-market-report

Novato Real Estate Market Update

There are currently 226 homes* for sale in Novato, California. There are 80 homes under contract.
(*single family)
Median List Price $671,950
Highest Priced Home in Greenbrae (single family) $2,995,000 1200 Cabro Ridge, Novato
Lowest Priced Home in Greenbrae (single family) $354,900 2577 Topaz Drive, Novato
Asking Price per Square Foot $333
Average Days on Market 163
Percent of Properties with Price Decrease 48%
Percent Relisted 4%
Median House Size (sq ft) 2,095
Median Lot Size 8,0001-10,000 Sq Feet.
Median Number of Bedrooms 4.0
Median Number of Bathrooms 2.5
Market Action Index 15 – Cold! Buyer’s Market

The Market Action Index answers the question: “How’s the Novato Real Estate Market?” By measuring the current rate of sale versus the amount of inventory. Index above 30 implies seller’s market conditions. Below 30, conditions favor the buyer.

Novato Real Estate Market Data effective as of March 30, 2009. Data provided by AltosResearch and Bay Area Real Estate Information Services, Inc. Are you a Marin real estate junkie? Sign up to receive very detailed real-time market reports in your email. Just register and let me know which neighborhoods you are interested in. Download a sample report.

Part 2- Loan Modification 101- Doing your homework

Posted on by Ginger Wilcox

Once you’ve received your loan modification application from your lender it’s time to do your home work. What do we mean by “your homework?” We mean simply the collecting and ascertaining of your income and expenses in order to successfully complete your loan modification application.

In brief – think back to the documentation you needed to apply for your loan, you’ll need essentially that information in order to complete your loan modification application.

Continue reading →

Part 1- Loan Modification 101- Getting Started with a Loan Modification

Posted on March 29, 2009 by Ginger Wilcox

The mortgage payments are soaring because your ARM reset, or your income was cut in half, or two-thirds, or completely by a recent layoff. The bills are piling up and the savings is disappearing quickly. You need relief, and you’ve heard a lot about loan modifications as part of the way out of your financial train wreck. You’re not alone, millions of Americans face foreclosure every day and the specter of losing a home is one of the most emotionally and mentally grueling challenge a family can face. The first thing to getting started with a loan modification is: to pick up the phone.

Astonishingly, in more than 50% of homes that go in to foreclosure the homeowner never picks up the phone to talk to the lender. This seems counter-intuitive, but in reality, makes perfect sense. Too many homeowners feel helpless and give up before they even try. To get a loan modification your first step is to try – to pick up the phone.

Continue reading →

Loan Modification 101 – The Basics

Posted on March 28, 2009 by Ginger Wilcox

Mortgage loan modification, the changing of terms on an existing home loan, is becoming a well-known practice as the US housing market continues to struggle. Borrowers who find themselves underwater on their mortgage – owing more than the property is currently worth – and facing a rising monthly mortgage payment are being encouraged to pursue relief through modifying their home loan. But for all the news and hype around loan modifications very few homeowners really understand what goes in to getting their home loan terms changed to a level that they can afford.

In this series of posts we’ll teach you the basics of how the loan modification process works so that if you’re considering a loan modification you’ll understand how to give yourself the best chance of successfully completing the process.

In this series on loan modifications we’ll cover:

A Note on the Loan Modification Process

Because each loan and each lender, mortgage servicer or mortgage investor is different the process may be slightly different in your situation. Use this information as a guideline; but be sure to follow the specific requirements of your lender. Additionally, every loan has to be evaluated on its own merits. That means that a loan modification can take anywhere from 30 days to 90 days to complete. Your organization, persistence and diligence will make the difference in shaving days off the process.

A Note on Loan Modification Companies

Federal housing law makes taking money up front for a loan modification illegal. Many loan modifications get around this by affiliating themselves with a lawyer, and collect a retainer for legal service. Others collect a processing fee for submitting your loan package. Either way, be warned that paying to have a loan modification company do your modification application for you does not guarantee success. And, there are many unscrupulous characters moving in to this space. The Department of Housing and Urban Development (HUD) urges extreme caution if you choose a company to represent you in the modification process.

Next Step:  Part I in the Loan Modification 101  Series- Part 1- How to start the loan modification process. 

Related Posts in the Loan Modification 101 Series

You can learn more about doing your own loan modification here.  Courtesy of Morgan Brown, founder of Blown Mortgage.

Marin’s Best Sushi- Sushi Ran

Posted on March 20, 2009 by Ginger Wilcox

Sushi-Ran

Sushi is one of my absolute favorite foods to eat.  We are so fortunate living in the Bay Area to have phenomenal sushi.  I often pick up sushi from my local favorite gourmet grocery store, Woodlands Market in Kentfield. 

When I am looking for fantastic sushi and a finer dining experience, I frequently head to one of my favorite Marin restaurants, Sushi Ran in Sausalito.  Sushi Ran is located on Bridgeway in downtown Sausalito.  The restaurant is pricey, but it is well worth the cost.  It is truly one of the Bay Area’s finest restaurants.  In October, Sushi Ran’s Executive Chef, Mitsunori Kusakabe, won the Sushi of the Year Award in London.  The exclusive restaurant has also been awarded the exclusive Michelin Star.

Reservations can be tough to get at the popular restaurant but it does take walk ins.  It is also generally easy to grab a table later in the evening on the weeknight.  My favorite spot to sit is on the walk-in side of the restaurant on the covered (and heated patio).  I love the warm, inviting atmosphere and the sushi is truly outstanding.  If you haven’t been there, check it out!

  • What:  Sushi Ran
  • Where:  107 Caledonia Street, Sausalito, CA 94965
  • Phone:  415-332-3620
  • More information: www.sushiran.com

 

Image courtesy of biskuit at Flickr.

Understanding FICO

Posted on March 19, 2009 by MortgageNews

fico-score The basis of most mortgage lending is credit scoring.  In general, the higher a person’s credit score, the lower his offered mortgage interest rate.

Despite the many credit scoring models in use today, however, just 3 are relevant to American homeowners:

  • The Equifax BEACON® score
  • The Experian Fair Isaac Risk Model
  • The TransUnion EMPIRICA®

Generically, these scoring models generate what are commonly known as “FICO” scores.

FICO scores are measurements of probability.  The higher a person’s credit score, by definition, the less likely a person is to default on his home loan.  This is one reason why credit scoring has added importance lately — mortgage lenders are very careful about what they’re lending and to whom.

Notably, minimum FICO thresholds have been added to all types of mortgage loans.

FICO scoring has 5 main components as listed above.  Payment history and credit capacity are two of the largest pieces, but a myriad of other factors contribute to a credit score, too.  For example, the longer your reported history of managing credit, the more favorably your credit score will respond.

The myFICO.com website does a terrific job with credit education, explaining in plain language the ins-and-out of credit scoring and ways to boost your score.  It also makes a free, 20-page PDF available for download. 

Whether you’re a homeowner or lifetime renter — consider it required reading.

4% Mortgages??? Not so fast-What the Fed Announcement Really Means

Posted on March 18, 2009 by StaceyFleece

Today the Federal Reserve wrapped up its two-day March meeting and came out with some significant announcements relative to our economy. Specific to key interest rates and mortgage rates, they kept the Fed Fund rate unchanged (which was widely expected) but also announced an increase of their buyback program on mortgage back securities (MBS). They pledged an additional $750 billion to the program on top of the original $500 billion (of which they have burned through about half). This is great news…but what does it really mean?

Shortly after this announcement, I got in my car to drive to an appointment in San Francisco and turned on CNBC to listen to the post-Fed meeting chatter. In the following 25 minutes, the “talking heads” on CNBC used the words “4% mortgage” probably no less than 14 times. Heck, the way they were talking you would think rates were on the way to 4% with the next stop at zero! But don’t be looking for those media-created 4% mortgages any time soon…here’s why…

Yes, it is great news that the Fed is increasing their MBS purchase program. But they are generally out buying the 4%-5% coupons which does not necessarily drive up-front mortgage rates down hard and fast. What it DOES mean is that their buyback program will allow rates to stay low (in the 5% range) for an extended period of time. We are currently seeing conforming fixed rates around 4.875%-5% with no points…I would expect with this announcement they could go a bit lower but they are not going to 4% anytime soon.

Also keeping mortgage rates from falling significantly further is a jump in refinance applications this year as homeowners rightfully rush to take advantage of low mortgage rates. This rush has ALL lenders experiencing capacity issues. According to Arthur Frank, director of mortgage-backed securities research at Deutsche Bank Securities, “When originators are getting all the business they can handle, they don’t compete as aggressively on price.” I’m not saying that rates won’t fluctuate and could come down some…but this situation does, to some degree, create a floor for rates.

Oh…and what is all this MBS buyback buzz going to do for jumbo loans which many of us have in the Bay? Nothing. Remember, we are still experiencing a lack of secondary market for jumbo loans. That means lenders have to hold all jumbo loans they write in their own portfolios so they will price them appropriately for their own portfolio needs…not necessarily based on moves in the MBS market. We are being quite aggressive in jumbo loans right now but not because of MBS trading…because we want to write the jumbo loans.

Bottom line is this: the Fed announcement is good news but don’t listen to the media as they are misinformed. As long as you are being guided by and getting advice from an educated and well-informed mortgage banker, you are doing right by yourself. Rates are great right now! Don’t try and pick the bottom of the market – just find a loan program and a rate that makes sense for you.

Stacey Fleece is a Mortgage Loan Consultant with Countrywide Home Loans in Mill Valley in Marin County, California.

First-Time Home Buyer Credit Form

Posted on by MortgageNews

first-time-home-buyer-credit As part of the American Recovery and Reinvestment Act of 2009, the IRS has officially released Form 5405 — better known as the First-Time Home Buyer Credit Form.

True to tax code standards, the 10-field form is accompanied by 3 pages of instructions.

Form 5405 is a helpful, go-to resource for home buyers with questions about the tax credit.

For example, the form distinguishes tax consequences for homes bought in 2008 versus 2009, and clearly defines the term “first-time home buyer”.

In addition, Form 5405 highlights the math behind the tax credit. In general, the First-Time Homebuyer Credit is equal to the lesser of:

  • $8,000 for homes bought in 2009
  • 10 percent of the home’s purchase price

Married couples filing separately are entitled to half of the expected credit, and homes sold within 3 years are subject to a credit repayment in the year the home ceases to be the “main home”.

Form 5405 is a comprehensive reference. However, be sure to check with your accountant for specific questions about your personal returns and how the First-Time Homebuyer Credit may impact your finances.

Guidance For Soon-To-Be Real Estate Investors

Posted on March 16, 2009 by MortgageNews

“Most of the biggest real estate fortunes were not made in good times, but in bad times like this” Barbara Corcoran reminds us in this talk with NBC. 

It’s important perspective for Americans wondering how to invest in foreclosed properties without losing their cash or their credit rating.

In the 4-minute interview, Corcoran quips on the basics and the essentials of foreclosure investing,

  • “Everyone who loses their shirt loses it somewhere else.”
  • “Every big shark started small.”
  • “The house on the corner sets the tone for the block.”

She also lends some personal perspective to rent rolls, the cost of losing a tenant, and finding a good business partner.

Banks are anxious to sell their foreclosed homes and that makes this an ideal time for shrewd real estate investors.  If you’re new to the game, watch the video and take good notes.