Some Great Charts To Check Out

The following post has some great charts regarding the real estate market and when they are anticipating will be the best time to sell...like wait until 2019...but the BEST time to buy is right NOW!!!

How to time the market |

How to time the market |

Update on Some Recent California Real Estate Laws

The California Bill of Rights was enacted into law on July 11, 2012 to assist struggling Californians keep their homes.  This law will go into effect on January 1, 2013 and it aims to avoid foreclosure where possible.  It generally prohibits lenders from engaging in dual tracking, requires a single point of contact for borrowers seeking foreclosure prevention alternatives, providers borrowers with certain safeguards during the foreclosure process, and provides borrowers with the right to sue lenders for material violations of this law.  The bulk of the law applies to first trust deeds secured by owner-occupied properties with one-to-four residential units.

Another new law is California Education Code section 48204 which extends until 2017 a school district's ability to admit a student if the student's parent works at least part-time within the boundaries of that school district.

A Story About Buying Again After Foreclosure

November 02, 2012 12:07 am • Pete Carey - San Jose Mercury News

LIVERMORE, Calif. -- R.C. and Stacy Davis lost their condominium to foreclosure in 2009, a bad break that seemed destined to keep them from buying another home for many years.


Yet last week (only three years after their foreclosure) the couple signed the papers to buy a four-bedroom house.

Their avenue to homeownership? A loan backed by the Federal Housing Administration.

"We're as happy as can be," Stacy Davis said.

The ability to get an FHA loan so quickly after a foreclosure could be welcome news to thousands of people who lost their homes during the housing bust.

While mortgage giants Fannie Mae and Freddie Mac make people wait seven years after a foreclosure, the FHA will approve loans after three years, providing the buyer has established good credit and the ability to pay the mortgage.

"There's definitely a movement of folks who have had a foreclosure to re-emerge and re-engage in the market," said Dustin Hobbs of the California Mortgage Bankers Association. He said brokers have picked up on the trend.

"It helps the housing market," said Guy Schwartz of CMG Financial, which handled the Davises' mortgage.

The FHA, which is self-supporting, provides mortgage insurance for loans with low down payments and more flexible household income requirements. The Davis loan came with a 3.5 percent down payment plus required monthly mortgage insurance and a 3.75 percent interest rate on a 30-year loan.

"An FHA loan is a good option for those who can qualify," said Paul Leonard, California director of the Center for Responsible Lending. And there couldn't be a better time to try, he said.

"We are at near substantial price corrections," he noted. That and low interest rates present "kind of a historic opportunity if people can qualify," he said.

But it's not clear whether there's a flood or a trickle of new borrowers with foreclosures in their recent past.

The FHA said it doesn't have data on how many of the loans it insures involve people who are buying homes after a foreclosure or short sale.

Wells Fargo, the country's largest FHA loan originator and servicer, said it doesn't break out those loans. In the first six months of this year, Wells Fargo has made more than $73 billion in FHA-backed loans compared with $47 billion last year, spokesman Jim Hines said.

Mason McDuffie Mortgage in San Ramon is working with foreclosure victims.

"We are making loans and have made loans to people who have corrected their credit," said Bill Godfrey of Mason McDuffie. "It's nice to see."

The borrowers are "people who waited three years, have a job and qualify," Godfrey said. "They have their credit, have a job and things are looking better. They may not be perfect . but that's part of the way to move forward. Clearly there is some thawing in that area."

Some listing agents complain FHA loans take a lot more time and work. "It's a hard transaction to complete," said Bob Barrie of Keller Williams in San Jose, Calif. Barrie said he is listing a home next week in Santa Clara, Calif., and if there are multiple offers, a buyer with an FHA loan will be at a disadvantage.

The Davis' journey from foreclosure to new home began in 2005, when they bought a condo in Concord, Calif., for $262,000 at the peak of the market.

The couple's interest-only, 100 percent-financed loan was a classic bubble product that became a formula for foreclosure during the housing crash.

To make things worse, the condo was in a rough neighborhood, said Stacy Davis, who is a high school special-education teacher in Fremont, Calif. Her husband is a senior producer for the Golden State Warriors basketball team.

They tried to sell the condo after their daughter was born, but no one wanted to buy it, Stacy Davis said. "We decided we're going to try to stick this out. We owned it, and we would make it work."

So they remodeled, put in a new kitchen and molding.  Meanwhile, the neighborhood deteriorated. Shopping carts piled up on the sidewalk, she said. Graffiti blossomed on walls.

After their son was born, they tried a short sale and found a buyer. "Within a week, an upstairs bathroom pipe busted open and flooded the whole place - the new kitchen, the molding, all destroyed. So the buyer backed out," she said.  Their condo in ruins, they moved to a rented house in Dublin, Calif., and the bank foreclosed. Their credit rating dropped to about 500, but they were able to build it back to about 700.

"Within a year we were getting credit card applications. We didn't feel like it affected our lives at all," she said.

The purchase of the house in Livermore completed, the Davis family will move in early November

The Federal Housing Administration insures home loans so banks can be more flexible in making loans with lower down payments and more flexible income requirements. The FHA, which is self-supporting, was created in 1934 during the depths of the Great Depression to try to revive the housing market.

Here's what the FHA says about loans after foreclosures and short sales:

-Previous mortgage foreclosure: Borrowers are generally not eligible for a new FHA-insured mortgage if, during the previous three years, their previous principal residence or other real property was foreclosed, or they gave a deed-in-lieu of foreclosure.

Exception: The lender may grant an exception to the three-year requirement if the foreclosure was the result of documented extenuating circumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner, and the borrower has re-established good credit since the foreclosure.

Divorce is not considered an extenuating circumstance. An exception may, however, be granted where a borrower's loan was current at the time of the divorce, the ex-spouse received the property, and the loan was later foreclosed.

The inability to sell the property due to a job transfer or relocation to another area does not qualify as an extenuating circumstance.

-Borrower current at the time of short sale: A borrower is considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage, all mortgage payments on the prior mortgage were made within the month due for the 12-month period preceding the short sale, and installment debt payments for the same time period were also made within the month due.

-Borrower in default at the time of short sale: A borrower in default on a mortgage at the time of the short sale (or pre-foreclosure sale) is not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale.

Exception: A lender may make an exception to this rule for a borrower in default on a mortgage at the time of the short sale if the default was due to circumstances beyond the borrower's control, such as the death of a primary wage earner or long-term uninsured illness, and if a review of the credit report indicates satisfactory credit before the circumstances beyond the borrower's control that caused the default.

On a short sale, long-term job loss or layoff would be considered an exception considered to be circumstances beyond the borrower's control.

Note: Borrowers are not eligible for a new FHA-insured mortgage if they pursued a short-sale agreement on their principal residence simply to take advantage of declining market conditions to purchase a similar or superior property within a reasonable commuting distance at a reduced price, as compared with current market value.

SOURCE: Federal Housing Administration

Bits and Pieces

2011 was the second year in a row that Orange County, CA property values are up by 2%.  This is great news since with assessed values being up, so are property assessments. 

Today is the last day to file an appeal on your property tax assessment.  If you disagree with the assessed value, homeowners can file an Application for a Changed Assessment.

Home sales in July 2012 are up 25.7% over July 2011 and the median price of an Orange County home in July 2012 increased to $450,000.

California ranks 10th among the 50 states in terms of the amount of residential property tax residents pay.  While residents rank 6th nationally in regard to their overall tax burden.  The median annual residential property tax bill is $2,839. And, the average amount Californians pay per capita in state and local taxes is $4,910.

According to Zillow, combining Los Angeles and Orange County areas, buying a home beats renting in fewer than five years.  Zillow's analysis looked at more than 200 metropolitan areas and 7,500 cities and in almost every instance, buying was better, but the break-even point differed.  For instance, in the Riverside - San Bernardino area buying beat renting in two years while in San Francisco it took as long as 24.3 years for purchasing to pay off.

What Really Do Appraisers Look At In Determining Value?

By Alison Rogers

Money – Thu, Aug 9, 2012 1:28 PM EDT

________________________________________

When it comes to assessing a home's value, real estate agents and homeowners tend to be an optimistic bunch.

In the post-bust world, appraisers are a different story. They have to predict a realistic value for your home that the bank can use to extend credit to a borrower -- and that number can make or break your sale or refinance.

Appraisers say the following five areas are where homeowners often misjudge the worth of their abode.

1. The outside

The appraiser sees: Overgrown bushes and chipped paint.

What he does: Slices as much as 3% off the value of an average-size home.

Why: Curb appeal is primo. And an unkempt yard is a sign that there may be other issues.

"A good-looking lawn and bushes imply that you also take care of the internal systems in the house," says Jonathan Miller, president and CEO of a New York City-based appraisal firm that works throughout the tri-state area.

Moreover, the more meticulous your neighbors are about grooming, the more your appraiser will downgrade the value of your home.

"If a lot of the nearby properties are professionally maintained, the one that sticks out like a sore thumb will get a harder adjustment than in a subdivision where there's more variation," says San Diego appraiser Armando Ortiz.

2. Basic systems

The appraiser sees: A brand-new roof.

What he does: Nothing.

Why: Just as a knee replacement won't make you look 20 years younger, a new roof, furnace, or boiler isn't considered an improvement to your home.

That said, if your roof is in disrepair, replace it: Signs of leaks or discoloration can knock a significant amount off the home's value.

"When people buy a home, they expect the roof to be working," says Columbus appraiser Mike Armentrout. "So while a new one isn't an added feature, it will help your chances of a sale."

3. The basement

The appraiser sees: A recently finished basement with a half bath.

What he does: Adds about 2% to the value of the home.

Why: Yes, your finished basement adds value -- but don't expect it to count like first-floor space.

The addition of a bedroom and quarter bath on the ground floor could increase your home's value by up to 20%, especially if you've got only one other bathroom.

"A below-ground basement normally isn't included in the square footage of the house," says Miller.

The same rule applies to outbuildings like a pool-house casita, painting shed, or studio.

4. The market

The appraiser hears: Two nearby homes just went into contract above their asking prices.

What he does: Nothing.

Why: While a broker might pump up a home's asking price based on the sense that the market is "hot," by and large, appraisers are bound by the data of recent comparable sales.

What if prices are suddenly up in your area, and you're nervous that your house won't appraise for contract price? In that case, you might want to delay your appraisal until one of those recently contracted sales closes.

5. A remodel

The appraiser sees: An expensive, custom-made, built-in entertainment center.

What he does: Makes a negative adjustment to the valuation.

Why: "Cost doesn't equal value," says Miller.

Renovations that are at all trendy -- or not in keeping with the historical period of the home -- will be assessed at the cost of ripping them out.

Timeless improvements, on the other hand, such as a deep sink or new wooden cabinets in the kitchen, will add value.

So if you're thinking of remodeling, ask a local real estate agent to tell you what's on the wish list of today's buyers.

State Responsibility Area (SRA) Bills To Come Out Soon

Property owners within the State Responsibility Area (SRA) will soon be receiving a bill requiring payment up to $150 per habitable structure for state fire prevention services.




In July of 2011, the Governor signed legislation (ABX1 29) requiring affected property owners to pay a fee for state fire prevention services in their area. The fee is applied to all habitable structures within the SRA.



The SRA is the area of the state where the State of California is financially responsible for the prevention and suppression of wildfires. SRA does not include lands within city boundaries or in federal ownership. To see if your property is within the SRA, use the State Responsibility Area Viewer website:

http://www.firepreventionfee.org/sraviewer.php

The fee is levied at the rate of $150 per habitable structure, which is defined as a building that can be occupied for residential use. Owners of habitable structures who are also within the boundaries of a local fire protection agency will receive a reduction of $35 per habitable structure.

This fee will fund a variety of important fire prevention services within the SRA including brush clearance and activities to improve forest health so the forest can better withstand wildfire.

Ability to Purchase After A Short Sale: Update

Now that several years have passed since many of the first short sales have been consummated, many homeowners, who went through a short sale desire to get back into a home and take advantage of the great buying opportunity which exists right now. Every day lenders receive requests from both agents and their clients to determine the eligibility to purchase again. The most often stated re-approval terms, if late mortgage payments existed at time of sale, are a 2 year wait when financing conventional with 20% down and a 4 year wait with 10% down. It is a 3 year wait with FHA which is 3.5% down. As it turns out, it is not that cut and dry like we all thought. As we work through individual case files we have uncovered a serious defect to the system that is causing havoc to the process. Credit reporting with the bureaus does not truly reflect the terms of the escrow the seller really went through. Here is what I mean and the actual guidelines from Fannie Mae are posted below for you to examine. A short sale is known by Fannie Mae as a pre-foreclosure in all of their guides. DU is Desktop Underwriter which is the proprietary underwriting system of Fannie Mae. In order to sell a loan to Fannie Mae the case file of the borrower must be entered into DU in order to receive a finding of an “accept” or approval. A “refer” means there is a problem. Now, here is the real issue. When the short sale lender reports to the credit bureaus that a short sale has taken place, the bureaus report it as a pre-foreclose, an 8 or 9 to the seller’s credit files. When we run the credit years later and then run a DU, we are receiving “refers” because the system says it is a foreclosure and not eligible to have an approval as the waiting period should be 7 years, the waiting period for a foreclosure. We contact the bureaus and say we have paperwork that shows the previous bank’s written authorization for a short sale as well as a HUD closing statement to back our claim. The credit bureaus will not change the information in their systems because…..a short sale is a pre-foreclosure which is a form of….foreclosure. As you will see below, Fannie Mae guidelines state the lenders must manually apply the pre-foreclosure sale requirements. Perfect a solution. No it’s not. Why? Because the investors will not buy the loans unless there is a “DU ACCEPT!” Pre-foreclosure Sales or Short Sales • DU is not able to identify pre-foreclosure or short sales in the credit report data. Lenders must manually apply the pre-foreclosure sale requirements to DU loan case files, regardless of the underwriting recommendation received from DU. • DU will issue a message on loan case files where the borrower's credit report indicates an account may have been released to a pre-foreclosure sale. The recommendation on the loan case file will not be changed when this information appears on the credit report, though as stated above, the lender must ensure the loan complies with all other requirements specific to pre-foreclosure sales as specified in B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Reestablishing Credit.. DU applies the following guidelines to prior foreclosures: • Mortgage accounts, including first liens, second liens, home improvement loans, HELOCs, and mobile home loans, will be identified as a foreclosure if there is a current status or manner of payment/MOP code of “8” (foreclosure) or “9” (collection or charge-off). This issue is just now coming to light and as I suspect, will grow large enough creating awareness to Fannie Mae to adapt new procedures so new potential homebuyers are not shut out improperly. Personally, I intend to elevate this as much as possible and as frequently as possible to help keep it on the radar. My advice to all is to make sure any person wanting to purchase again after going through a short sale, get fully approved through DU prior to writing any offers to purchase a home.

Foreclosure Stats

The number of new foreclosure filings fell below 200,000 for only the second time in more than four years. California was responsible for more than half of the latest improvement. Meanwhile, Boston saw a major increase in new filings. Residential loan servicers filed foreclosure notices on 188,780 properties during April. Filings include default notices, scheduled auctions and repossessions. The last time foreclosures were this low was in July 2007, when 179,599 U.S. properties were hit with a filing. A month earlier, filings were made on 198,853 properties, according to RealtyTrac, which provided the report based on data from 2,200 U.S. counties. The total was 219,258 a year earlier. Year-to-date foreclosure filings totaled 761,708, though some properties might have faced filings in more than one month. More than half of last month's improvement was out of California, where the total tumbled to 39,008 from March's 45,122. Still, the Golden State had more foreclosures than any other state. "Rising foreclosure activity in many state and local markets in April was masked at the national level by sizable decreases in hard-hit foreclosure states like California, Arizona and Nevada," RealtyTrac Chief Executive Officer Brandon Moore said in the report. "Those three states, and several other non-judicial foreclosure states like them, more efficiently processed foreclosures last year, resulting in fewer catch-up foreclosures this year." Moore abandoned his usual warnings that suggest a foreclosure tsunami is ahead. Among the 20 biggest metropolitan statistical areas, Phoenix saw a 23 percent decline from March, the biggest improvement of any city. At the other end of the spectrum was Boston, where filings skyrocketed 47 percent. One foreclosure was filed in April for each 698 U.S. housing units. The rate was better than one-in-662 the prior month and one-in-593 in the same month the prior year. With a foreclosure filed on each 300 housing units, Nevada grabbed the title of the state with the worst foreclosure rate. At one-in-351, California had the second-worst rate -- though the rate improved from one-in-303 a month earlier. The Golden State was home to the Riverside-San Bernardino MSA, where the one-in-213 foreclosure rate was the worst among major MSAs. The next-worst state was Florida, with a one-in-364 rate, then Arizona's one-in-377 rate and Georgia's one-in-398 rate. The trio was home to the MSAs with the next-worst rates: Miami's one-in-273, Atlanta's one-in-298 and Phoenix's one-in-313. Tampa's one-in-315 rate was the fifth-worst of any area.

Interesting Statistics...FYI

I came across some interesting statistics on the economy and homeownership in particular. In January 2012 the average mortgage interest rate was 3.9%, which is an awesome rate. The interesting part of this statistic is that according to the 2012 UCLA Anderson Forecast, the expected average mortgage interest rate is expected to be 7.3% within two years. If that is not a motivating factor to try to jump into this housing market, I don't know what is. This change in interest rate will be gradual, but what that does to your monthly payment would be to increase it by $1,000 per month. This is based on the current median sales price. I don't know too many people that can handle an increase of $1,000 per month to their overhead over the course of two years. By purchasing at today's lower interest rates with the reduced prices of homes, that would amount to a savings of $345,000 over the course of a thirty-year fixed-rate loan.

Mortgage Insurance Premiums Are No Longer Tax Deductible

The ability of homeowners to write off the premiums they pay for mortgage insurance expired very quietly at the end of December 2011, along with 58 other tax code benefits that Congress failed to renew. Estimates are that this loss could cost individual homeowners between $600 and $1,000 on their annual federal income tax bills starting in 2012.

Senate Bill 332

Under Senate Bill 332 landlords of residential properties may ban the smoking of tobacco products as of January 1, 2012. Landlords have the authority to put restrictions in new leases specifying the areas on their property where smoking is prohibited. If a lease was signed before January 1st and the landlord now wants to ban smoking, it would be a chnage in the terms of the lease. In a month-to-month tenancy, 30 days' written notice is required. In longer term tenancy, the parties will need to enter into a new agreement when the existing agreement expires or they must modify the existing agreement. For the modification to be enforceable, the landlord will need to provide some sort of consideration to the tenant in exchange for the loss of smoking privileges.

Mello-Roos Special Tax Assessments Will Not Be an Allowed Tax Deduction in 2012

Many California taxpayers who have been using the total amount of their property tax bill as a deduction for state income tax purposes will have to discontinue this practice with their 2012 tax bill (taxes due April 2013). Although the law hasn't changed, the Franchise Tax Board's (FTB)software has been updated. I don't think most people really understood that special assessments and user fees including things such as vector control and water district charges were never suppose to be deducted. With a new computer system the FTB will be able to differentiate between these charges. Many of the smaller fees are rather insignificant and for many total less than $20. But the special assessments called Mello-Roos taxes are also no longer deductible, and that could make a big difference in a lot of state income tax payments. For many people in Orange County, the Mello-Roos component of their property tax bill can be close to 40%. Over 20% of the county's residents pay a Mello-Roos assessment and for the 2011-2012 tax year that amounted to about $207.8 million.

A HIDDEN FEE IS SET TO RISE...

From The New York Times By VICKIE ELMER Published: March 1, 2012 INSIDE the interest rate quoted on your home mortgage lies a small hidden fee that has been charged by government-sponsored entities like Fannie Mae and Freddie Mac for more than three decades. It’s an add-on rate known as the guarantee fee. An increase in the fee has been mandated by Congress to occur this spring, and other increases are likely later this year and next. When they happen, interest rates on single-family mortgages resold to Fannie Mae or Freddie Mac are likely to inch up as well. “It’s going to be silently passed through” by lenders when it does increase, said Richard W. Grohmann, a real estate lawyer in Paramus, N.J. The G-fee — as it is known — does not show up in borrowers’ mortgage documents or good-faith estimates, and it is little known outside the industry. “It gets incorporated into the underlying rate that the borrower pays,” said Andrew Wilson, a spokesman for Fannie Mae. An interest rate is usually made up of three parts: the largest goes to the bank or the investors who buy the loan; a smaller portion is for the mortgage servicer that collects monthly payments; and then there’s the guarantee fee. Fannie and Freddie charge guarantee fees as a form of insurance against default for the loans they acquire and resell to investors. The G-fee will rise 10 basis points on April 1; the increase was included in the two-month extension of the payroll tax reduction last December. (A basis point is equal to one one-hundredth of 1 percent, or 0.01 percent.) Keith T. Gumbinger, a vice president of HSH Associates, a financial publisher in Pompton Plains, N.J., says the increase in the guarantee fee will very likely push up mortgage rates on new loans by one-eighth of a percentage point. “While it is most common to build the G-fee into the loan’s rate, it doesn’t have to be done that way,” he said in an e-mail, noting that some lenders might charge a flat fee instead. Already, though, loans with interest-rate locks from the last 45 or 60 days have the higher guarantee fee written into them, according to Tom Kelly, the president of Investors Home Mortgage, a division of Investors Bank in Short Hills, N.J. Lenders say they need the extra lead time because it may take time to close the loan, package it and send it on to Fannie or Freddie. One way to avoid the guarantee fee is to use a lender that does not sell off its loans — for instance, a community bank or a credit union. Besides offsetting risks, the fees provide a primary source of revenue for Fannie Mae and Freddie Mac. Fannie, for instance, made $5.6 billion in single-family guarantee-fee income in the first nine months of 2011, a 4.7 percent increase from the 2010 period, according to its quarterly financial statements. Fannie and Freddie have collected G-fees since the introduction of mortgage-backed securities in the early 1980s. “It was variable from the start, based on the volume level of loans” made by the lender, Mr. Kelly said. Both organizations started raising fee rates in 2008 during the housing crisis, as foreclosure costs rose. G-fees gained modestly in 2010, and also last year. New single-family loans acquired by Fannie Mae were charged a guarantee fee of 31.1 basis points, on average, in the third quarter of 2011, the most recent period for which data are available. That is six points higher than in the third quarter of 2010. Rates on multifamily loans are 15 to 20 basis points higher than on single-families. “We expect that single-family guarantee fees will increase in the coming years,” Fannie Mae said in its third-quarter report to investors, “although we do not know the timing, form or extent of these increases.” In a letter to Congress last month, Edward J. DeMarco, the acting director of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, suggested “continued gradual increases.”

Consumer Attitudes about Personal Finances and Housing Stabilize Alongside Positive Economic News

By Pete Bakel 202-752-2034 WASHINGTON, DC – Americans' concerns about key economic and housing issues are beginning to subside, according to results from Fannie Mae's February 2012 National Housing Survey. Consumers' attitudes have stabilized across most indicators – including personal finances, housing, and employment – demonstrating their sense that downside risks have abated somewhat compared to late summer and fall of 2011. While Americans' confidence in the direction of the economy has been the most pronounced (35 percent think that the economy is on the right track, up 19 percentage points since November, and 57 percent think the economy is on the wrong track, down 18 percentage points since November), their confidence about personal financial situations, household income, and household expenses, as well as attitudes about homeownership and renting is holding at steady levels. At the same time, Americans' concern about losing their job in the next 12 months has stabilized since the late fall, with 76 percent of Americans saying they are not concerned in February 2012, compared to 70 percent in November 2011. “The pickup in the pace of hiring over the past few months has helped soothe consumer concerns, lifting their moods regarding their personal finances, the direction of the economy, and their views on the housing market,” said Doug Duncan, vice president and chief economist of Fannie Mae. “As a result, we’ve seen more potential for economic upside, creating a more balanced near-term outlook.” SURVEY HIGHLIGHTS The Economy and Household Finances •The rise in confidence in the economy’s direction continued this month, with 35 percent responding that they think the economy is on the right track, a 5 percentage point increase from January. The percentage of respondents who say the economy is on the wrong track dropped to 57 percent, a decline of 6 percentage points. •Only 12 percent think that their personal financial situation will worsen in the next 12 months, a 3 percentage point drop from January and the lowest value in over a year. •Sixteen percent of respondents say their income is significantly lower than it was 12 months ago (down 1 percentage point since January), while 63 percent say it has stayed the same (up 1 percentage point since January). •Thirty-three percent say their expenses have increased significantly over the past 12 months, a 3 percentage point decrease from last month and the lowest level in the past 12 months. Homeownership and Renting •On average, Americans expect home prices to increase by 0.8 percent over the next 12 months (down slightly since last month). •Twenty-eight percent of respondents expect home prices to increase over the next 12 months (consistent with last month), while 15 percent say they expect home prices to decline (down 1 percentage point since last month). Fifty-three percent say prices will stay the same. •Ten percent of Americans say that mortgage rates will go down in the next 12 months, a 2 percentage point increase from last month. •The percentage of respondents who say it is a good time to sell rose by 3 percentage points to 13 percent, the highest level in over a year, while the percentage of respondents who say it is a good time to buy dropped 1 percentage point to 70 percent this month. •On average, respondents expect home rental prices to increase by 3.5 percent over the next 12 months, a slight increase since January. •Forty-five percent of respondents think that home rental prices will go up, a 2 percentage point increase from last month, while 3 percent expect them to go down, a 2 percentage point decrease from last month and the lowest value in over a year. •Sixty-five percent of respondents say they would buy their next home if they were going to move, up 1 percentage point since last month, while 29 percent say they would rent, down 1 percentage point versus last month. The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,003 Americans via live telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future. For detailed findings from the February 2012 survey, as well as technical notes on survey methodology and the questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site. Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies. The February 2012 Fannie Mae National Housing Survey was conducted between February 1, 2012 and February 27, 2012. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae. Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America. Follow us on Twitter: http://twitter.com/FannieMae.

Disclosures Updated...

Since the explosion of a gas transmission pipeline in San Bruno in 2010, Real Estate Agents throughout California are voicing opinions regarding the disclosure of gas lines in real estate transactions based on the constant 'marketing' efforts of some NHD providers. This type of advertising promotes the perception that disclosing gas pipelines is essential in protecting one's liability. Not so fast! Before jumping on the bandwagon by supporting NHD companies that "disclose" gas transmission pipeline locations in their NHD reports, we need to better understand the likely risks of providing this information in a NHD report. Remember, the NHD Industry is not regulated; essentially allowing NHD providers the freedom to shape their reports with information based solely on their judgment...not the requirements. Often these arbitrary, unauthorized additions to your NHD report only serve to increase your liability...instead of protecting it! Currently, there are no laws in California that require sellers, agents, or NHD companies to provide gas transmission pipeline disclosure to a buyer. In fact, according to disclaimers, the National Pipeline Mapping System (NPMS) maps that are being used for these "disclosures" are inaccurate and incomplete. Pipeline location depicted by the NPMS Public Map Viewer is intended to be used for general reference only. The NPMS limits the viewing scale due to Federal Homeland Security concerns, making precise disclosure of the pipelines virtually impossible. NPMS data consists of gas transmission pipelines and hazardous liquid trunk lines only. It does not contain gathering or distribution pipelines, such as lines which deliver gas to a customer's home. Disclosure of only transmission gas pipelines can give a prospective buyer the impression that only those lines present a potential danger. Since NPMS data location is not accurate; printing a map of the NPMS and tracing the lines onto another map in a disclosure report introduces additional inaccuracies. Not all pipelines in an area are visible in the Public Map Viewer. For example, jet fuel pipelines would not be visible, and therefore not disclosed. So, selecting only the NPMS maps can place additional liability on the agent to discover other maps that show other pipelines.

A Brief Explanation of the "Rumored" 3.8% Sales Tax on Real Estate

Every so often I get emails and phone calls from people that have heard about this new sales tax and they are totally freaked out, blaming Obama for his Health Care bill and more taxes. Take a deep breath,calm down, and read the following explantion to put yourself at ease... Section 1402 of HR 4872, the Health Care and Education Affordability Reconciliation Act of 2010 which President Obama signed into law on March 23, 2010, does have some interesting provisions. First, let's be perfectly clear: THERE IS NOT ABOUT TO BE A 3.8% SALES TAX ON ALL REAL ESTATE SALES. It is true that, beginning January 1, 2013, there will be yet another new tax imposed. But it won't be imposed on everyone, and only in certain situations will it apply to income derived from a sale of real estate. The tax only applies to so-called "high income" tax payers: Singles whose adjusted gross income (AGI) is over $200,000 and married couples whose adjusted gross income is over $250,000. The new tax is 3.8%, and it is a surcharge. It is a tax added to the regular taxes paid on income. To understand how the tax works, we need to remember that adjusted gross income (AGI) is a combination of what Washington calls "earned income" (essentially, your day job) and "unearned income" (income from capital gains, net rental income, dividends, and interest). Sometimes "unearned income" is called "investment income". Here is how the tax applies: If you are a "high income" tax payer, then the 3.8% tax will be imposed on the lesser of the following: Either (a) the amount by which your adjusted gross income exceeds the limit($200,000 for a single or $250,000 for a married couple) Or (b) the total of your "unearned income" Example 1: A couple earns $200,000 in their regular jobs; plus they have net rental income of $100,000. Earned income = $200,000 Investment income = $100,000 AGI (adjusted gross income)= $300,000 Excess of AGI over limit= $ 50,000 limit for couples is $250,000) Lesser amount of either (a) or (b) [see paragraph above] $ 50,000 (the total of "unearned income" was $100,000) Tax surcharge due= $ 1,900 ($50,000 x .038) Example 2: A couple earns $400,000 in their regular jobs; plus they have net rental income of $50,000 and also a $50,000 capital gain from the sale of an investment property. Earned income = $400,000 Investment income= $100,000 AGI = $500,000 Excess of AGI over limit= $250,000 Lesser of either the excess over AGI or the total "unearned income" = $100,000 Tax surcharge due= $ 3,800 ($100,000 x .038) So, IF you are a high income earner, and IF the tax surcharge is applied to your "unearned income", and IF that income included capital gains from the sale of real estate, then, yes, the tax will apply to at least some of the proceeds of the real estate sale. Note, if a personal residence is sold, then the capital gains exclusions that now exist will still apply. The only gain that might be taxed would be that which exceeded the exclusion limits ($250,000 for singles, and $500,000 for married couples). The tax surcharge is sometimes called a Medicare Tax. This is because that is where the money will go. The National Association of Realtors (NAR) has put out a couple of brochures on this topic and should you want more information, please contact me and I will forward them to you. The Frequently Asked Questions (FAQ) brochure is probably an easier read. The longer brochure contains a lot of examples. So now you have the skinny on this subject!

OOPS...There Are More FHA Increases on the Horizon...

On June 1st, 2012, there will be an additional increase of the monthly mortgage insurance premium for the high balance areas. Currently, the upfront mortgage insurance, the amount added to the loan amount, is 1.00%. As of April 1st the new upfront mortgage insurance will increase to 1.75%. As an example, on a loan amount of $400,000, the current 1.00% equates to $4,000. After the increase goes into effect the new amount based upon 1.75% equates to $7,000. This increase will essentially add an additional $13 to the monthly payment. The current monthly mortgage insurance premium is 1.15%. On April 1st it will be increased to 1.25%. On a $400,000 loan amount the monthly premium will increase from $383 to $416, or $33 a month more. Add this to the $13 from the upfront increase it totals $46 extra the borrower will be paying for FHA financing on a $400,000 loan amount. As they say on TV, “Wait, there’s more!” Effective on June 1st, FHA has announced that loan amounts greater than $625,500 up to and including the maximum loan amount of $729,750, the monthly mortgage insurance premium will increase another .25% to 1.50%. The government feels these buyers can afford more. As an example using a $700,000 loan, the current monthly premium is $670. Effective April 1st, it will increase to $729, an increase of $59. When the June 1st premium increase takes effect, the monthly premium for the $700,000 loan will increase to $875 which is $205 more from where it stands today. If you are on the fence about purchasing a home, I highly suggest you look at how the cost of financing is about to go up and to take advantage of the terms currently available. Today, there are more loan products on the market so FHA is not the only way...give me a call and we can talk about other options and I can refer you to some lenders that can HELP!

FHA Fees To Increase April 1st

FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent. Current Rate New Rate Up-front charge 1.00% 1.75% Monthly charge 1.15% 1.25% Examples: CURRENT UP-FRONT RATE: $200,000 price at 96.5% = $194,930 loan amount NEW UP-FRONT RATE: $200,000 price at 96.5% = 196,377.50 loan amount CURRENT MONTHLY RATE: 1.15% on $194,930 = $185/monthly MI NEW MONTHLY RATE: 1.25% on $196,377.50 = $201/monthly MI These increases can mean the difference between qualifying or NOT.

Multi-generational housing is a temporary fix for economic woes | first tuesday journal online

Multi-generational housing is a temporary fix for economic woes | first tuesday journal online

241 Toll Road Extension Update...

If you live in Southern Orange County or are planning on moving into the area...this information is critical. If you would like to see the proposed map of the area, please email me directly and I will forward it to you. After hearing feedback from Board Members and the community, TCA staff performed additional technical analysis to determine the location of the southern terminus of the four‐mile 241 extension project, which was proposed in October and expected to travel from the road’s current terminus at Oso Parkway to the Ortega Highway area. The Foothill/Eastern Transportation Corridor Agency Board of Directors voted to continue the engineering, environmental, traffic and financial analysis of the extension and provide an interim terminus at a future road called Cow Camp Road near San Juan Capistrano. At a future date ‐‐ and when the adjacent local transportation system is complete in the unincorporated area north of Ortega Highway and east of Antonio Parkway ‐‐ a permanent SR 241 interchange will be built at future “G Street.” This segment is 4.8 miles long and will provide more direct access to Antonio Parkway and Ortega Highway than the plan presented in October. An important consideration in the analysis was how the SR 241 extension project will work with the roadway circulation system that is planned for this area of the county. Cow Camp Road is planned to run parallel to Ortega Highway, to the north of San Juan Creek. Cow Camp Road will be the area’s major east‐west arterial roadway with two to three lanes in each direction. It is projected to carry 30,000+ trips a day in 2035. Ortega Highway will become a secondary road with one lane in each direction through this area and is estimated to carry 6,000 trips a day in 2035. The engineering, environmental, traffic and financial analysis is scheduled to be complete in October 2012 and construction could begin shortly thereafter. The construction cost is estimated at $200 million. Environmental impacts of the project have been minimized through project design features and can be successfully mitigated. One of the design features included in the 4.8‐mile project is the construction of three wildlife crossings to insure continued wildlife movement through the area.

Financing A Home Is Easier Than You Think!

As an agent, I think this sort of information needs to get out to more consumers, so I am passing on this email I got yesterday to help put the word out... One thing that I honestly can say is holding back the housing market is the overwhelming belief that buyers cannot get financing. The consensus seems to be that only large down payments are required along with very high credit scores. Even then the belief is that the underwriting is so stringent that most buyers don’t want to apply for fear of having their loan rejected. What would really help and could make a difference is for agents to let their clients know that these misnomers could not be any father from the truth. Agents can post information on websites, send information to data bases and even blog to get the word out. The fact is, while lending is not the free-for-all it was five years ago, common sense has come back full swing. Meaning, down payments now are smaller on higher loan amounts than have been in place for years. The government agencies feel the worst of the home price decline is behind us allowing more leniencies. In addition, underwriting documentation requirements have eased because the economy has stabilized and shown signs of improvement so less risk is at stake. In Orange and Los Angeles Counties, borrowers are able to secure a home loan in the amount of $729,750 with only 3.5% down payment. That equates to buying a home for $756,250 and only needing a down payment of $26,500. The down payment can be a gift from family members as well. The credit score can be as low as 640. With 10% down payment, a borrower can obtain financing for their home with a maximum loan of $875,500. With 20% down payment the maximum loan is $2,000,000. From there the down payments increase the higher the loan amount requested. Please find attached additional programs that include Foreign National, Pledged Assets and Asset Depletion loans. Yes, there is now financing available other then Fannie Mae, Freddie Mac, FHA and VA. Please keep in mind it is best for buyers to be preapproved with a lender before shopping for a home so any specific nuances in their case can be worked out prior to entering escrow. However, there really isn’t any reason for buyers to be fearful when applying for a home loan. If they can really afford to make the payment, have reasonable credit and can substantiate their income then it is reasonable to expect they will be approved. PrimeLending is more than Fannie Mae, Freddie Mac, FHA and VA FOREIGN NATIONAL PROGRAM  Visa Not Required  FICO Not Required  U.S. Tax Returns Not Required  U.S. Bank Deposit Not Required  50% Loan to Value  Portfolio ARM Product PLEDGED ASSET PROGRAM  “Pledge” Assets in Lieu of Down Payment  90% Loan to Value to $5 Million  No Mortgage Insurance  No Liquidation of Assets  No Capital Gains Tax  Portfolio ARM Product ASSET DEPLETION PROGRAM  Debt to Income Problem Solver  Assets and age are used as income  Income added to application 90% FINANCING TO $875,500  $625,500 1st + $250,000 2nd  Required Mortgage Insurance  30 Year Fixed or ARM Products For more information, please contact a member of The Kevin Budde Team. Kevin Budde, Neal Pilon, Tiffany Garcia, Joelynn Warner, Katrina Hanshaw

What Will 2012 Bring For Southern California Real Estate?

Let's get out our crystal ball and take a look... That is about as much as anyone I have talked to knows. It is only a projection based upon trends, but really no one knows for sure. Everyone is guessing, but we can make some pretty good calculations, and estimations based on what’s actually happened and inventories. First of all, you must remember that home ownership is about a whole lot more than a cash investment. Yes, it’s a hedge against inflation (more on that below), and yes, it’s the only investment where you can leverage your cash on such a large transaction. Those points alone should make real estate attractive. But houses were never meant to be ATM’s, as many have sadly discovered, and they were not meant to be flipped as fluently as trading stocks, which still others have discovered. But for the long term buy and hold mentality, it’s hard to beat real estate. And, that philosophy was just discussed by 3 economists in the New York Times in the December 31st Business section. But home ownership is much, much, more. It is where you raise your family, it is your sanctuary, and it is a quality of life embedded in your investment. But maybe most importantly, it’s a way to protect your housing dollar from ever rising again...EVER. To find out what next year will look like? Read the whole newsletter, and you should get a pretty good idea. A summary statement might be, look for the beginnings of the turnaround, for prices to bottom out by 2nd quarter, interest rates to stay killer for at least 6 months, and the overall economy to do its part, as it’s projected to grow about 4% this year (last year was approximately 2.7%). WHERE WILL HOUSING PRICES GO THIS SPRING? There are some indicators worth noting. First of all,the slough off of foreclosures last year due to moratoriums and fraudulent robo signing issues should be off the radar and allow foreclosures to ramp back up. That should mean more competition with the short and equity seller, as well as some pent up listing activity of people who didn’t want to list during the holidays. The first and second quarter is always when you see the most listing activity. Following are 4 brief statements by various entities about spring pricing. Zillow believes we not see a bottom in prices until the first quarter of 2012. Standard and Poor thinks prices will drop 5% in the next few months. JP Morgan Chase believes prices will depreciate 6% to 7% over the next 6 months. Barclays says prices will fall 7% by the end of the first quarter of 2012. One thing everyone seems to be in agreement on: housing prices will bottom out by mid-2012 and then stay flat, bringing this down market to an end. A long recovery may be in the offing, but it will be hard for buyers to stay on the sidelines with current pricing and interest rates. Don’t be fooled by a house that MAY decline another 2%-3%, but be stuck with a higher interest rate on the loan that more than eradicates any savings on the housing price. WHAT WERE THE ACTUAL NUMBERS FOR NOVEMBER (THE LATEST MONTH AVAILABLE)? The total number of resale properties was 2,080 which broke down to 1,452 single-family and 628 condos. Looking closer at the sales, there were 974 single-family equity sales, 265 short sales, and 213 REO listings sold. All these numbers are closed sales. There were 292 equity condo sales, 187 short and 149 REO listing. (All numbers for Orange County. You may check other counties throughout the state by going to www.dataquick. com). There were a total of 1,643 Notices of Default filed, and 1,538 Notices of Trustee Sale recorded. There was a total of 535 trustee sale auctions held, with 172 being purchased by investors and 363 going back to the banks (those are the future REO or bank owned listings that will be coming out in future months).

Economic Week In Review

"Happy days are here again." Milton Ager and Jack Yellen. And while it seems that consumers are certainly feeling happier, not everything that happened last week was cause for song. There was good news last Friday, as the first look at Consumer Sentiment for January came in at 74.0, which is the highest level since May 2011. However, there was also news last week that the holiday shopping season may not have been as robust as previously thought. Retail Sales in December rose by a meager 0.1% from 0.4% in November, and when stripping out autos, sales actually fell 0.2%. Why did this happen? It seems that steep holiday discounting held down the value of goods sold, so sales were big, but only because of the heavy discounting. The news out of Europe last week also wasn't too happy. German Chancellor Angela Merkel and International Monetary Fund Managing Director Christine Lagarde met to discuss and finalize the debt restructuring deal for Greece. Back in October, a deal called for Bondholders to "accept" a 50% haircut on the face value of the Greek debt - but as creditors and authorities have started to forge a final deal, the actual haircut back to investors is looking quite likely to be larger than 50%. This is simply because worsening financial conditions in the Greek economy make paying the debt back with "just" a 50% haircut highly unlikely...maybe impossible. What's more, the next reasonable question to consider is will Ireland, Portugal and even Italy ask for a similar haircut or deal on what may be unsustainable debt in their countries? The happy news is that these problems are finally being addressed to make things better in the future. And in the short term, the uncertainty should keep money flowing into the relative safe haven of the US Dollar and US Bonds - including Mortgage Bonds, to which home loan rates are tied. In addition, Mortgage Bonds continue to be supported by the Fed's purchases, which are also helping to keep home loan rates at record low levels. All of this means that now continues to remain a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients. Forecast for the Week Despite the Bond Markets and all Capital Markets being closed on Monday in observance of Martin Luther King, Jr. Day, the rest of the week's economic calendar is full: • Manufacturing strong? The week's economic data kicks off on Tuesday with a manufacturing indicator from New York's Empire State Index for January. In addition, the Philadelphia Fed Index for January will be released on Thursday. Last month, both reports reached their highest levels in months. Remember: The Stock Market likes to see healthy economic growth because that translates to higher corporate profits. However, the Bond market prefers a moderate growth environment that won't generate inflationary pressures. • Speaking of inflation… We'll see inflation reports on the wholesale level in the Producer Price Index on Wednesday, followed by the Consumer Price Index on Thursday. Inflation has remained tame…and Bondholders will be closely watching these two indicators for any signs of an uptick. • Back on track this week? Initial Jobless Claims will be released as usual on Thursday. Last week's number showed an uptick in claims and broke the recent trend of decreasing claims. However, the rise could have been due in part to layoffs of seasonal holiday workers. So the markets will be watching to see if this report gets back on track with the recent positive trend. • No place like home! Housing data in the form of Housing Starts, Building Permits and Existing Home Sales will all be reported this week. Housing continues to troll around low levels despite record low home loan rates. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates are continuing their improving trend. I'll be watching this closely as we head further into the new year. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Jan 13, 2012) The Mortgage Market Guide View... Housing News: 11 Trends from 2011 The National Association of Realtors® surveys homebuyers and sellers each year to uncover housing trends and monitor changes taking place in the industry. This year's report highlights a number of trends that haven't been seen in years. Here are just 11 highlights from the 2011 report. 1. In 2011, 37% of homebuyers were first-time buyers - which was down from 50% in 2010. 2. Last year, 88% of homebuyers used the Internet to search for a home. That number was down slightly from a high of 90% in 2009. 3. The typical homebuyer searched for 12 weeks and viewed 12 homes. 4. The number of buyers who purchased their home through a real estate agent or broker climbed to 89% - a share that has steadily increased from 69% in 2001. 5. Nearly 1 out of 4 buyers said the application and approval process was "somewhat more difficult" than expected…and 16% reported it was "much more difficult" than expected. 6. About half of home sellers traded up to a larger and more expensive home…and 60% traded up to a new home. 7. The top 3 factors influencing neighborhood choice were: the quality of the neighborhood, the convenience to job, and the overall affordability of homes. 8. The typical seller lived in their home for 9 years. That number has increased from 6 years in 2007. 9. Although 61% of sellers said they reduced their asking price at least once, the average home sold for 95% of the listing price. 10. Only 10% of sellers sold their homes without the assistance of a real estate agent. Of those people, 40% knew the buyer prior to the sale. 11. The typical "for sale by owner" home sold for $150,000 compared to $215,000 for the average agent-assisted home sale. All Contents ©2012 The National Association of Realtors®.

FHA Mortgages May Be the Best Choice

FHA Mortgages May Be the Best Choice

State Target Property Tax Payers

In a recent article in the Orange County Register, we learn that Mello-Roos tax assessments are NOT tax deductible and starting on our 2012 tax returns, the state will have the improved software to track the various portions of our tax bill and what is deductible and what isn't. For instance Vector Control is also, not tax deductible and I think most homeowners were not aware of this either. As many as 5 million California property-tax payers who have been taking the entire amount they pay off their state income taxes could see a major cut in their deductions when they file next year. Beginning with the 2012 tax bill (the one due in April 2013), the state Franchise Tax Board will require property owners to break down their property taxes into deductible and non-deductible portions. That means property owners who have been deducting their Mello-Roos fees — often running into thousands of dollars — will no longer be able to deduct those or any other special assessments like vector control or mosquito abatement. In Orange County, 181,550 of the county’s approximately 900,000 parcels were subject to Mello-Roos in the 2011-2012 tax year, according to the auditor-controller’s office. They were billed a total of $207.8 million. The difference between deductible and non-deductible property taxes is not a new rule. Mello-Roos fees, which pay for roads, schools, fire stations and other public facilities in new developments, have not been deductible from state income taxes since the legislature authorized the special assessments 30 years ago. Many property owners, however, routinely deduct the entire amount of their property tax bill from their state income taxes instead of only the parts that legally are deductible. Others just use the amount on the Form 1098 that their mortgage holder paid to the county tax collector on their behalf. Until now the Franchise Tax Board didn’t to go after them. A new computer system being installed this year, however, will allow the agency to distinguish the portions of property tax bills that are deductible and non-deductible, said Daniel Tahara, a FTB spokesman. He said the new scrutiny of property taxes is not due to any political pressure to increase tax revenues to close the state’s gaping budget deficit. “Every year we look at areas of non-compliance and this happened to be one that came up,” he said. Tahara said the agency is announcing the new rules now so taxpayers can make any adjustments this year for their 2012 state tax filing next year. He said the FTB had planned to impose the new rules on 2011 tax filings due this April, but held off after getting “negative feedback” from tax preparers and the public. Pat Yeckel, president of Canyon Tax and Bookkeeping Service Inc. in Rancho Santa Margarita, said that she and other tax preparers have known Mello-Roos and other fees weren’t deductible, but that clients usually don’t have the breakdown of their property tax bill. It will be a particularly big deal for property owners in South County and other new developments where many of the public amenities were paid through Mello-Roos districts. “This is going to be a big pain,” Yeckel said, noting that just getting the property tax paperwork can be a hassle. Taxpayers will need a copy of their tax bills whether or not they pay their own property taxes or have them paid through their mortgage payment because they will need their parcel number in addition to the deductible/non-deductible breakdown for their 2012 state income tax filing. Shari L. Freidenrich, the Orange County Treasurer-Tax Collector, said her office is just beginning to prepare for what is expected to be an onslaught of questions. She said taxpayers can now get property tax bills back two years online. You will need the property address or the assessor’s parcel number (APN). You can also get the bill emailed to you at ttcinfo@ttc.ocgov.com

Five Issues For Housing for 2012

By Nick Timiraos from the Wall Street Journal The Associated Press is trying to figure out where the housing market is headed in 2012 offers a strong sense of déjà vu: The market feels just as it did at the beginning of 2011, when many pundits optimistically predicted that housing would finally hit bottom. The housing market didn’t deteriorate in 2011, but it didn’t firm up either amid an economic recovery that struggled to find its footing. So what does 2012 hold? For one, the story will be local. While many housing markets rose together during the boom and fell together during the bust, they’re exiting the downturn at different speeds, and so it’s not very useful to talk about a “national” housing market. With that caveat in mind, here’s a look at five key issues that will help determine whether prices stabilize and sales improve in the coming year: 1. Confidence and jobs: The housing market badly needs the economy to add more jobs to stimulate demand for home purchases and to prevent mortgage delinquencies from rising. The good news is that with prices down by 30% from their peak and mortgage rates at their lowest recorded levels, housing is more affordable than it has been in decades. But many would-be buyers are worried about buying today if prices are going to be lower tomorrow. Others don’t want to buy a house until they have more evidence that they’re not going to get laid off or see their hours cut back. 2. Foreclosures: Whether home prices hit a floor this year also relies on how banks manage a huge overhang of foreclosed homes that they haven’t yet taken back and resold. Banks and other mortgage investors own around 440,000 foreclosed properties, but there’s another 3.4 million loans in foreclosure or serious delinquency, according to estimates by Barclays Capital. Because banks are faster to cut prices to unload inventory than are mom-and-pop sellers, home values can fall further as the share of distressed sales rises. This is one by reason why policymakers at the Federal Reserve and elsewhere are talking about converting some of those foreclosed homes into rental properties. Look for some pilot programs where government entities test the concept in 2012. 3. Rents: Apartment rents are rising as vacancy rates drop to levels that are already lower than the low point in 2006 during the previous economic cycle. If low mortgage rates aren’t enough to give urgency to would-be buyers, rent hikes could accelerate buyers’ decisions to take the plunge. 4. Mortgage credit and rates: Federal policymakers have taken extraordinary steps to keep mortgage rates low and federal-backed entities are responsible for backing nearly nine in 10 new mortgages. But it’s still hard for many buyers to get a loan because banks are demanding lots of documentation of borrowers’ incomes, and appraisals are tanking some deals. When appraisals come in below agreed upon sales prices, sellers must drop prices or buyers must put down more cash. Banks will need to put their legacy-loan problems behind them before there’s much easing in lending standards. Other wildcards remain on the lending and rates front: will the Federal Reserve initiate another round of buying mortgage-backed securities—a step known to some as “quantitative easing”—to lift the economy? Will continued litigation and demands that banks buy back defaulted loans from mortgage titans Fannie Mae and Freddie Mac lead them to be more stingy with mortgage credit? And will other lenders move in to fill that void? Will the government do more to juice up refinancing programs? Will rates rise as the government attempts to draw back private capital by raising the fees that Fannie and Freddie charge to lenders? 5. Regulation: Many analysts don’t expect Congress to make major changes to Fannie Mae and Freddie Mac during the election year, but several major regulatory changes could significantly reshape the future of the lending landscape in 2012. Dodd-Frank Act lending rules that have yet to be spelled out by regulators will influence how banks price loans that are bundled and sold into securities. Another set of rules will determine how banks must satisfy provisions for them to determine that a borrower has the ability to repay a mortgage. Meanwhile, the regulator that oversees Fannie and Freddie is revamping the way that mortgage companies are paid for collecting loan payments. This could lead to a broader shakeup in the mortgage industry that ultimately influences how much borrowers are charged for mortgages and how banks handle loans that fall into delinquency.