Freddie Mac Suspension of Foreclosure Sales

Hope you have a Happy Thanksgiving.

Starting today, sale of single family homes and 2-4 units on loans held by Freddie Mac will not be sold until the suspension period is over on January 9, 2009. Vacant single family homes are excluded from this suspension. This is to allow more time for Freddie Mac's loan modification program to be implemented. Read the Do's and Don'ts of Foreclosure.

If you are in this position, or close to it, please don't stop answering your phone or reading your mail. Lenders are now attempting loan modification programs, and engaging representatives to speak to you in person. (Ask for identification.) You could be hurting your chances of success if you ignore the many attempts made to contact you; some loan modification programs are the only chance the borrower will have to catch up, until you improve your FICO score and can get an improved refinance. If you would like to know more, please call me.

Are You Taking Advantage of Your Decline in Market Value and Homeowner Exemptions?

Do you know about your property tax reduction option? Generally, the median home price in California is about the same as 2004, so if you bought your residence after that time, you might want to apply to the Los Angeles County Assessor for a reduction. You have until the end of this month to get your application in, so there's not much time left, but basically, you need to find two comparable properties that support your application that sold close to January 1 and through March 31 of 2008. The Assessor's site has the form and directions needed for this. You can find your own comparables through this site, but if you want help from me, please e-mail me or call me, and I will gladly provide you, via e-mail, with MLS closed listings.

If you live in Orange County, please contact your tax assessor there.

Also, some people may not be filing their Homeowner's exemption -- you may obtain a $7000 reduction in your assessed tax value (that's usually based on the selling price of your home). Originally, $7000 was a significant amount when the home values were $35,000. Today, you may get about $50-$70 off your total tax dollars owed, but a penny saved is a penny earned. You can download the form from the Los Angeles County site, for this and other exemptions including those for veterans, instititutions, real property transfer exclusions between parent/child and grandparent/child, seniors' exclusions, and disaster relief.

Lender-Owned Property Inventory in Long Beach Areas

As mortgage lenders develop their loan workout programs, the number of lender-owned properties coming on the market may slow down. In the meantime, many REO (real estate owned, or bank owned) properties are an opportunity for the investors and 1st-time buyers who are ready to buy.

Long Beach - 14% of the single family houses and condos listed in the CARETS-SoCalMLS (new expanded version of combined MLSs in Los Angeles, Riverside, Orange and San Bernardino Counties as of 11/11/2008!) are REO properties: 228 out of a total of 1,636.

Multi-unit (2+ units): 11%, 44 out of a total of 389.

(for photo at right, see post on Long Beach Ebell)

Cerritos - 10% of SFRs and condos: 11 out of a total of 112.

Lakewood - 13% of SFRs and condos: 29 out of a total of 226.
Multi-unit listings: 0 out of 9 listings.

Signal Hill - 11% of SFRs and condos: 5 out of a total of 55.
Multi-unit listings: 0 out of 10 listings.

Huntington Beach - 6% of SFRs and condos: 42 out of a total of 647.
Multi-units: 0 out of a total of 55.

Los Alamitos/Rossmoor - 5% of SFRs and condos: 4 out of a total of 73.

Seal Beach - 1% of SFRs and condos: 1 out of a total of 68.

Cypress - 4% of SFRs and condos: 4 out of a total of 90.

San Pedro - 4% of SFRs and condos: 11 out of a total of 280.
Multi-units: 14%, 2 out of 14.

Active listings only are given here, but for reference, per Dataquick on 10/23: "Foreclosure resales have emerged as a major market factor, accounting for 47.6 percent of all California resale activity last quarter." Not all market areas are equally impacted.

What is not shown in the list above are other "special condition" listings, such as short sales, probates, relocation or bankruptcy listings. The short sale listings in particular are an indication of future REO listings. For a list of short sale listings, please contact me.

For a comprehensive list of REO properties not all of which may be listed on the MLS, contact me.

For information on guidelines for loan modification, please contact me. I may be able to help you with Countrywide, Washington Mutual/Chase, IndyMac, Citigroup and the Hope for Homeowners.

What's the Life Expectancy of Your Home?

Consumerism has taught us to think about fast replacement, instead of "making it last".

How long will your house last? Watching the house restoration shows on TV should give some clues, but here's some specifics from a Los Angeles Times article by Calvin Woodward dated 2/16/1997, and more from the a 2006 National Assn of Homebuilders home life expectancy chart:

Dishwasher - 10 years

Microwave - 9-11 years (mine was going strong at 16 years)

Brick, masonry, stone wall - 100 years

Wood decks - 15-20 years

Garage door openers - 10-15 years

Furnaces - 15-20 years

Drywall -

Heat/Smoke detectors - 5-10 years

Natural stone counters - lifetime

Cultured marble counters - 20 years

Kitchen cabinets - 50 years

Garage/laundry cabinets - 100 years

Gas range - 15 years (that depends, too, some are 50-60 years old or more)

Wood flooring - 100 years +

Vinyl floors - 50 years

Carpet - 8-10 years (depends on traffic)

Roof, asphalt or wood shingles and shakes- 15-30 years; slate, 50-100 and more

Gutters - 30 years

Concrete walk - 24 years

Swimming pool - 18 years

PVC piping - 25 years

Polyvinyl fences - lifetime

Asphalt driveway - 15-20 years

These are general guidelines only, because quality of maintenance is a strong factor in the life of any of these items. Geography is the other: a salt-air climate will have a much different impact than a dry desert climate.

2009 FNMA and Freddie Mac Loan Limits Just Announced

Fannie Mae and FHA loans limits were "temporarily" increased to $729,750 in our market area as a part of an overall Economic Stimulus Plan. Well, those loan limits are due to sunset on December 31, 2008.

The Federal Housing Finance Agency just announced today that, for the Los Angeles-Long Beach-Santa Ana metropolitan region, the new 2009 conforming loan limits are $625,500 for one unit (house, condo, etc.), $800,775 for 2 units, $967,950 for 3 units, $1,202,925 for 4 units. The conforming loan limit in other areas will remain at $417,000. Link to high cost area loan limits.

Consult your lender for more details.

Long Beach First-Time Home Buying Assistance

Good news for first time buyers in the Long Beach area: The buyer affordability index is higher than it's been in several years--in Los Angeles County it's up to 40% or higher. Condo prices in particular have softened a great deal, and house prices are lowering also.

One of the best bets for first time buyers right now are FHA loans because of 3% or 3.5% down payment, flexible credit score guidelines, and somewhat more forgiving debt ratios. For a few people with FICO scores over 740 who plan on buying a single family residence, there might be minimal opportunities for a 5% down loan. Otherwise, buyers will need to have 10% down payment or more. Additional programs (requiring specific lenders) is the California Housing Finance Agency, a program that may work in combination with loans.

Down Payment Assistance Program

The City of Long Beach, however, does have a second mortgage assistance program for first-time buyers who purchase a primary residence in the City and in certain areas, with as little as 1% of the purchase price out of their own funds, and who meet certain eligibilty requirements, as of October 1st.

The borrower must currently live or work in Long Beach or show evidence of a job offer in the city, and household income for two adults cannot exceed $57,400, for example, or $71,800 for 4 adults. The maximum sales price for the City's program is for condos under $332,500 and single family residence with a sales price under $500,650. For example, today, in the Southern California MLS, there are over 475 active listings for 2+ bedroom condos or houses priced at $350,000 and under in Long Beach. Not all of these fall within the areas specific to the City program, but, for example, if you enjoy the downtown area and adjacent sections, this program could be for you. First, you must be pre-approved with a qualified lender for this program. If you contact me, I can help you find a lender working with this City program.

As part of your homebuyer education, it's important to find a good loan officer; yes, internet research helps with some basic information, but one of the pitfalls for many buyers is in making decisions or coming to conclusions about financing based on random internet searches that only tell part of the story. Lending guidelines have changed radically during 2008; keeping your information updated and developing contact with an experienced financial person is crucial to your home purchase.