Featured Properties
41322 De Luz
| MLS: | T09032643 |
|---|---|
| Bedrooms: | 5 |
| Bathrooms: | 5 |
| Sq. Feet: | 5050 |
| Location: | Temecula |
| Asking Price: | $999,000 |
19495 Calle Juanito
| MLS: | T10056792 |
|---|---|
| Bedrooms: | 3 |
| Bathrooms: | 3 1/2 |
| Sq. Feet: | 3800 |
| Location: | Murrieta |
| Asking Price: | $1,350,000 |
Gated Bel Vintage Community!
| MLS: | |
|---|---|
| Bedrooms: | 3 |
| Bathrooms: | 2 1/2 |
| Sq. Feet: | 1921 |
| Location: | San Dimas |
| Asking Price: | $539,999 |
43395 Manzano
| MLS: | T10027187 |
|---|---|
| Bedrooms: | 6 |
| Bathrooms: | 5 |
| Sq. Feet: | 6565 |
| Location: | Temecula |
| Asking Price: | $1,485,000 |
Gated "La Verne Heights" Estate!
| MLS: | |
|---|---|
| Bedrooms: | 5 |
| Bathrooms: | 3 |
| Sq. Feet: | 4046 |
| Location: | La Verne |
| Asking Price: | $998,999 |
Forced Overwithholding on All Independent Contractors
The Senate Budget committee briefly discussed imposing a 3% forced overwithholding on all independent contractors. This proposal was made in a new “stop-gap” budget measure meant to close the state’s looming $20 billion deficit. The committee chose not to include the independent contractor withholding proposal at this time, but may revisit as an option at a later date.
The California Association of REALTORS® Land Use and Environmental Committee is currently conducting a survey to determine which California communities have been faced with actual or proposed local ordinances requiring private vacation home rentals to be retrofitted to comply with the Americans with Disabilities Act (ADA) Standards for Accessible Design.
Numerous articles have reported that homeowners are underwater and that strategic defaults are increasing. However, a little known statistic by the Federal Reserve shows that home equity again is on the rise. The Federal Reserve conducts substantial research on mortgage balances and home-value changes in hundreds of local markets nationwide and reports its finding quarterly. According to the Fed’s most recent “flow of funds” survey, homeowners’ net equity increased by nearly $1 trillion compared with the recession’s lowest point between the first and third quarters of 2009. From June 30 to September 30, net equity rose by $418 billion.
According to a report by Zillow.com, the overall negative equity rate among U.S. homeowners remained flat in the fourth quarter at 21.4 percent. This report, combined with other housing factors and studies, may indicate that the unprecendented reduction in home equity is shifting. Some homeowners, expecially those in areas with high foreclosure rates, are choosing to strategically default on their mortgages, even though they can afford the mortgage. Many homeowners who choose this approach do so because they do not see an economic rationale in continuing to make their mortgage payments. Homeowners considering this option should be aware of the negative effect it will have on their credit status. Foreclosures can remain on credit reports for up to seven years, likely increasing the interest rates the consumer pays for credit, and making it more difficult to receive approval on a new mortgage loan.
The current housing market offers many opportunities for buyers, especially first timers. However, all buyers must consider the stability of their employment situation prior to purchasing a home. With California’s unemployment rate at 12.4 percent, many buyers could find themselves unemployed at some point. To provide a layer of security when purchasing a home, the California Association of REALTORS® (C.A.R.) is offering a Mortgage Protection Program (MPP) to qualified first-time buyers. Offered by C.A.R.’s Housing Affordability Fund, MPP provides up to $1,500 per month for up to 6 months to qualified buyers who lose their jobs due to layoffs. For more information about the C.A.R.H.A.F. MPP, contact a California REALTOR®, or visit HYPERLINK “http://www.car.org/members/hafmainpage/carhaffmortgageprotection/” http://www.car.org/members/hafmainpage/carhaffmortgageprotection/
The U.S. Treasury said its foreclosure-prevention program (Home Affordable Modification Program, known as HAMP) has cut mortgage payments for about 947,000 households, at least temporarily. The total was up about 11% from a month earlier. The administration estimates that 1.7 million households, about 3% of those with mortgages are eligible for the program. The Treasury said 60,000 trial modifications have been canceled. Many more are likely to fall out of this program this month because extensions of the time available to verify incomes have run out. For those who failed to qualify, lenders may proceed with foreclosure or seek other solutions, including short sales, in which homes are sold for less than the loan balance due. The program’s dropout rate is likely to be high, partly because lenders allowed many people into trials without first making sure they qualified. Wells Fargo & Co. said 92,000 of the borrowers it services had made three trial payments by January 31. It expects about half of them to get permanent modifications. Others failed to provide all or some of the required documents or were found to be ineligible after the paperwork was reviewed. Among loans with permanent modifications, the median monthly savings is about $522, the Treasury said. It said borrowers in trial and permanent modifications have saved more than $2.2 billion so far.
Foreclosures decreased 10 percent in January compared with December, according to Realty Trac®’s monthly foreclosure market report. Foreclosure filings were reported on 315,716 U.S. properties in January, a 10 percent decrease compared with December, but up 15 percent compared with January 2009. The report also found nearly one in every 409 U.S. housing units received a foreclosure filing in January. Foreclosure activity in California decreased 10.77 percent in January compared with December with one in every 187 housing units receiving a foreclosure filing, according to the report. Six California cities registered foreclosure rates among the top 10 in the nation: Modesto, one in every 107 housing units, Stockton, one in 107; Riverside-San Bernardino-Ontario, one in 109, Merced, one in 109, Vallejo-Fairfield, one in 112; and Bakersfield, one in 118.
Richard Tegley is a Broker/REALTOR®, a Director of the California Association of REALTORS® (C.A.R.) and the National Association of REALTORS® (N.A.R.) Richard can be reached at (951) 533-9340 or email Tegley@surfcity.net
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