Wednesday, August 26, 2009

More information on those Appraisal rules...

Here is some more information about the newer appraisal rules that went into effect earlier this year...  there are some additional loan rules/etc that will be introduced soon that will increase the  length of escrow time and possibly interfere with the buyer's timing of rate locks/etc.  yikes!!

Take care, Karena


"Realtors: Home Appraisal Rule "Destroying" Recovery
Written for the web byPosted By: George Warren, Reporter  

 

CARMICHAEL, CA - Real estate agents say a new regulation aimed at reducing mortgage fraud is hampering the market's recovery.



"I've never seen a market like this where a ready, willing and able buyer couldn't buy the property," said veteran broker Bert MacBride.  



MacBride just lost three deals in a row because of the Home Valuation Code of Conduct (HVCC), which establishes restrictions on appraisals for conforming home loans. The HVCC took effect May 1.



The HVCC prohibits mortgage brokers and Realtors from contacting local appraisers to prevent undue influence. Instead, lenders draw from a pool of appraisers through an intermediary known as an appraisal management company.



"These appraisers may be 200 or 300 miles from the marketplace," said Rick Cunningham, a Fair Oaks appraiser who has seen his business drop by two-thirds since the HVCC took effect. "They (out-of-town appraisers) lack the data to do a competent report."



MacBride spoke to News10 in front of the Carmichael duplex where his latest transaction collapsed. The duplex was listed at $180,000 and attracted four offers. MacBride's was the highest at $188,000.



But a Bay Area appraiser valued the property at $165,000. The lender balked and the deal fell through.



MacBride said the appraiser probably used comparable properties that were bank-owned or in Citrus Heights, which is just a block away.



"There's something wrong with this appraisal process that needs to be corrected," MacBride said.



Tracey Saizan, the Keller Williams agent listing the duplex, said the seller has now dropped his price to $165,000 to reflect the appraisal and will lose $23,000 as a result. She said the seller also spent $4,400 unnecessarily on pest repairs before the deal fell apart.



"This (the HVCC) is destroying any chance we had of turning this market around," Saizan said. "We're going backwards."



Rep. Doris Matsui, D-Sacramento, has sent a letter to HUD Secretary Shaun Donovan asking him to review the HVCC.



by George Warren, GWarren@news10.net


Created: 8/25/2009 4:13:24 PM Updated: 8/25/2009 7:25:33 PM "

Wednesday, August 19, 2009

Say No to Spending More Money on Appraisals

Remove the insane Appraisal Rules~
Please take a moment and go to
http://www.hvccpetition.com/SignPetition.aspx
and say NO to this regulation that has already cost consumers and buyers needless hundreds of additional dollars...

"URGENT HVCC UPDATE:
Thanks for signing our petition. HVCC Continues to devastate home values across the US. We fear that with higher Fannie and Freddie loan limits it will carry through to our former “jumbo” markets, leading the country even further into recession. As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). H.R. 3044 now has over 54 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country. Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code.
ThinkBigWorkSmall applauds the introduction of H.R. 3044 and would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.
Please sign and forward the following petition and forward to everyone you know in the industry and ask them to forward to their representatives:
www.hvccpetition.com"

People Still Want to Buy Homes

LOOK!! People still want to own homes out there :)
Take care,
Karena Jolley
MendoGroup team
CBMR
http://www.MendoGroup.com

"Daily Real Estate News | August 19, 2009 | Share
Study: Americans Still Want to Be Home Owners
Despite all of the bad news in the media about homeownership and mortgages, most Americans still believe buying a home is a great investment, according to a new study commissioned by Bankrate.com.

Among the findings from the study:

92 percent say that a home is a good investment for the future.
48 percent worry about losing or being unable to afford their homes.

"These results provide an interesting illustration of the public's mindset in a difficult economy," says Julie Bandy, editor in chief at Bankrate. "While nine out of 10 still believe in the American dream of homeownership, nearly half worry about losing their homes.”

Source: Bankrate.com (08/18/2009)"


http://www.realtor.org/RMODaily.nsf/pages/News2009081901?OpenDocument

Water Shortage issue in CA

Below is an article on the water shortage crisis in CA and the affects on farmers, too. A difficult situation, and no easy answers...
Take care, and talk to you soon,
Karena Jolley of the MendoGroup team
Coldwell Banker Mendo Realty
707 354 2999
www.MendoGroup.com



"Severe water shortages draw renewed focus
Issue Date: August 19, 2009

By Kate Campbell
Assistant Editor

With reservoirs at alarmingly low levels, a key official said the federal government will make it a top priority to restore the Sacramento-San Joaquin Delta and ensure reliable water supplies in California. Deputy Interior Secretary David Hayes told people who packed a Sacramento water forum last week that the Obama administration considers the delta ecosystem to be of national significance.

"It's the largest estuary on the west coast of the Americas, north and south," Hayes said. "It provides important ecological benefits and more than 20 million Californians rely on the delta for part of their water supply."

More Information
Storage in Key Reservoirs (PDF, 2.4 MB)
Storage in San Luis Reservoir has been hurt by restrictions on water pumping from the Sacramento-San Joaquin Delta. Other key reservoirs also hold less water than average for mid-August.
He likened the delta's importance to that of the Everglades, the Great Lakes and Chesapeake Bay.

Hayes said Interior Secretary Ken Salazar will hold a public forum in Washington, D.C., next month to discuss delta restoration plans and improve supply reliability.

He said solutions must involve both ecosystem restoration and structural improvements to the state's water system.

"This ecosystem is one of the jewels of the West Coast," Hayes said. "Some new engineering may be what saves California."


Water storage behind Oroville Dam stands at less than 60 percent of average for this time of year.Presentations during the forum included a summary of the findings of the Governor's Blue Ribbon Task Force on the delta and highlighted ongoing efforts to shape the Bay Delta Conservation Plan, in which the California Farm Bureau Federation has been heavily involved.

Chris Scheuring, CFBF managing counsel for the Natural Resources and Environmental Division, who attended last week's forum, said the event may help build momentum for solutions to the state's ongoing water crisis.

"Farm Bureau continues to work toward water supply solutions. Regulatory relief remains a concern, but the real solution is probably a physically improved infrastructure, including more surface water storage, if we are to get California out of crisis mode," Scheuring said.

"That also means conveyance improvements that restore delivery to points south of the delta, while taking care to protect our delta farmers and stabilize the delta ecosystem along the way," he said. "Like many other organizations and government agencies, Farm Bureau is devoting a great deal of its resources toward that end."

State officials also said a series of public information workshops on the Bay Delta Conservation Plan will update the public on progress toward action steps. The workshops are slated for later this month in Brentwood, Stockton and Walnut Grove.

In addition, the state Department of Water Resources has been holding a series of "get ready" workshops that stress drought emergency planning and stepped-up water conservation aimed at water agencies.

Ron Milligan, operations manager of the U.S. Bureau of Reclamation's Central Valley Project, said that as the 2009 water year ends there is "serious concern about water supply levels" and the limited resources being carried into the 2010 water year.

Because of multiple dry years and declining reservoir levels, he said the CVP has carryover this year of about 1 million acre-feet less than the historic average for this time of year.

"The past year has been challenging," Milligan said, because new regulations based on a U.S. Fish and Wildlife Service biological opinion limit water transfers from the delta to protect delta smelt.

"Clearly, some areas of the state have had record low water allocations, but in other areas contractors were getting their full allocations," he said. "But right now, our most significant reservoirs only have about 22 percent of normal water storage for this time of year."

The DWR Drought Operations Center reported statewide reservoir storage as of Friday stood at about 75 percent of the historic average for the date, but with individual key reservoirs much lower.

Milligan said the Bureau of Reclamation is doing everything it can to remove institutional and regulatory barriers to help move water from districts that may have supplies to those that are short. The drought water bank and private water users north of the delta have been able to make about 600,000 acre-feet available for transfer in 2009 to districts in need.

Wendy Martin, DWR statewide drought water coordinator, outlined preparation efforts for the 2010 water year.

"The reality is we just don't know what next year will bring, but whatever is done to prepare must be done now," Martin said. "I hope it rains like crazy, but I'm afraid it might continue dry."

She said water conservation continues to be a "critical part of the equation" for drought response. Programs to improve conservation by districts, industries and local communities are being rolled out now. A statewide public awareness campaign is being launched on radio and television. The federal government has just made $140 million available for the state's drought response.

"We have tremendous opportunity to save water, by individual water delivery systems, businesses, agriculture," Martin said.

Officials stressed at last week's forum that the state's water supply is static and, given continued population growth and the unknown impacts of climate change, future water shortages are likely if something isn't done.

In a separate action last week, more than 50 mayors from the San Joaquin Valley called on President Obama to visit the area himself, saying three years of drought coupled with court-ordered protections for threatened fish species have sapped critical irrigation supplies.

With idled land have come thousands of lost jobs on farms and in related businesses. Unemployment rates have reached 40 percent in some western San Joaquin Valley communities, and local officials issued the invitation to the president as part of continuing efforts to call attention to the economic impact of water policy.

(Kate Campbell is an assistant editor of Ag Alert. She may be contacted at kcampbell@cfbf.com.)

Permission for use is granted, however, credit must be made to the California Farm Bureau Federation when reprinting this item."
http://www.cfbf.com/agalert/AgAlertStory.cfm?ID=1365&ck=CF1F78FE923AFE05F7597DA2BE7A3DA8

Tuesday, August 18, 2009

More taxes we don't need in real estate

Hello, check this out-- new bills that cost us more money in the long run!!
Can they just work to fix our economic situation WITHOUT always thinking of new ways to tax us to death?? This one sounds like its small in the beginning, but DO NOT allow this ball to roll downhill... more and more transfer taxes/etc will really add up...



"How AB 827 & 985 affect your business:

AB 827 allows counties to collect up to an additional $3 for the recording of a real estate document, on top of other existing recording fees. Counties will then be allowed to use the proceeds from the additional "fees" to pay for the archiving of historical documents, including those from local agency meetings, records pertaining to transportation or "other records of public or historical" interest. Again, since the charge doesn't directly pay for the RECORDING of documents, it is a TRANSFER TAX, and under existing law must be approved by the voters.


In the case of AB 985, county recorders are using computer scanning now to search for, and expunge, social security numbers from records and C.A.R. has sought to have the same mechanism applied to illegal restrictions. The author has refused. C.A.R. has continued to oppose the bill because it does not utilize modern data processing methods to search for illegal restrictions and is a disguised tax. Over the last three years only about two dozen correction requests have been received statewide. AB 985 will encourage local government to overcharge for a correction program and use these funds for other programs. The $60 million the bill will raise in the first three years far exceeds the costs of actually correcting the property records in question. Again, since the fee collected does not directly pay for the RECORDING of documents, it is a TRANSFER TAX, and under existing law must be approved by the voters."

http://takeaction.realtoractioncenter.com/carealtors/notice-description.tcl?newsletter_id=42608098&r=Fp3nAn6aN5kj

Thursday, August 13, 2009

zillow... good for some areas, bad for others

Hey, everyone. Zillow can be great for residential neighborhoods, and now there are statistics to show where it can fall short: rural Counties like Mendocino, where the houses and properties are not all cookie-cutter, has a much larger margin or error for Zillow.
Look at
http://www.zillow.com/howto/DataCoverageZestimateAccuracyCA.htm
and see for yourself. It does not mean that everyone should stay away from Zillow-- it has great uses! But, just be aware... that's all!
Take care, and until next time,
Karena Jolley
MendoGroup team
Coldwell Banker Mendo Realty
707 354 2999
mendogroup@yahoo.com
www.mendogroup.com
lic 01482063

Thursday, August 6, 2009

Confidence, Everyone!!!!!!!!!

Okay, I had not known about this one before (and they have not asked for my opinion, either!!)

The Real Estate Confidence Index at http://agent.point2.com/reci.asp shows what real estate professionals are feeling every month. "They rate the current local real estate market, what they expect over the short-term (3-6 months), and what they expect over the medium-term (6-12 months)."

How are you feeling?? Depending on the day, I have a slightly different viewpoint!
Take care,
Karena Jolley of the MendoGroup team
at Coldwell Banker Mendo Realty, Inc.
707 354 2999888 590 3334 fax
www.MendoGroup.com
http://mendogroup.blogspot.com/
dre# 01482063