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A Path to Prison

by The Barringer Team

 

I personally have talked with people thinking of doing this and have given them the same advice. People think this is a BIG GAME they do not realize they are committing Fraud a prison offense here is a recent article on Inman News.

DEAR BENNY: I know someone who has qualified to obtain a second house by stating that he will rent his first house; however, he has no intentions of actually renting it. Upon obtaining the new house, he plans to walk away from the first house, letting it go into foreclosure. He will already own his new house before his credit is hurt by the foreclosure, and he plans to live in the new house until the foreclosure is removed from his credit report in seven years, so he sees it as the perfect plan. Is that legal, especially since he qualified for the new loan with false information? Is there anything I should warn him about? --Kevin

DEAR KEVIN: What a clever approach. Your friend will be the head of his class when he is incarcerated. Falsifying information on a mortgage loan application is a federal offense.

At the bottom of all settlement statements (called a "HUD-1) you will find the following language:

WARNING: It is a crime to knowingly make false statements to the United States on this or any similar form. Penalties upon conviction can include a fine and imprisonment. For details see: Title 18 U.S. Code Section 1001 and Section 1010.

Section 1001 of our federal law makes it a crime to make "any materially false, fictitious or fraudulent statement or representation," and the penalty can be a fine and imprisonment for not more than five years. Section 1010 deals with making false statements to induce the Department of Housing (including the FHA) to issue mortgage insurance or mortgage loans. Here, the penalty can be a fine and imprisonment for not more than two years.

I suggest that you tell your friend that he should (1) immediately rent out the house and (2) get himself a good criminal attorney. Need I say more?

Tracy Area Market Report 10/1/08 vs. 9/2/08

by The Barringer Team
Local Market Stats
The following information is from the local MLS database, as of October 1, 2008   and is compared to (September 2, 2008). If you are interested in a little more market information feel free to give us a call, we are always happy to talk about the market.

Tracy, CA
 
 
ACTIVE Status
Total # of residential properties for sale in the city of Tracy: 646 (675)
#of REO (foreclosures): 278 (289)
# of Short Sales: 293 (318)
Average # of days on market: 65 (71)
The median price of all homes for sale in Tracy: $249,900 ($264,900)
The average price of all homes for sale in Tracy: $280,302 ($286,569)
Lowest priced home: 1bd/1ba/594 sq. ft./$69,500
Highest priced home: 6bd/4,472 sq. ft./$1,249,000
 
PENDING Status
Number of properties currently under agreement:
404 (390)
# of REO: 325 (328)
Average pending price: $254,526 ($253,430)
 
Average pending home is 4 bedrooms, 2,034 square feet at a price of $254,526 that stays 44 days on the market.
 
SOLD Status
Residential property sold over previous 30 days: 160 homes or $41,283,365 in sales
(159 homes or $42,307,068 in sales)                                                       
REO’s sold in the last month: 144 (123)  
Average sale price: $258,021 ($276,517) 
Median sale price: $250,000 ($254,000)
High: 720K (6bd/4,508 sq. ft. home)
Low: 63K (2bd/806 sq. ft. home)
 
 

Weston Ranch, CA
 
 
ACTIVE Status
Total # of residential properties for sale in Weston Ranch: 264 (291)
#of REO (foreclosures): 414 (152)
# of Short Sales: 99 (115)
Average # of days on market: 67 (67)
The median price of all homes for sale in Weston Ranch: $169,900 ($179,500)
The average price of all homes for sale in Weston Ranch: $180,553 ($188,960)
Lowest priced home: 2bd/1,045sq. ft./$49,900
Highest priced home: 6bd/3,376 sq. ft./$375,000
 
PENDING Status
Number of properties currently under agreement:
194 (201)
# of REO: 171 (175)
Average pending price: $169,985 ($174,023)
 
Average pending home is 4 bedrooms, 2,041 square feet at a price of $169,985 that stays 47 days on the market.
 
SOLD Status
Residential property sold over previous 30 days: 80 homes or $13,749,550 in sales
(60 homes or $10,336,085 in sales)                                                                     
Average sale price: $171,869 ($178,208)
Median sale price: $170,000 ($176,525)
High: 275K (6bd/3,153 sq. ft. home)
(270K(5bd/4ba/3,376 sq. ft. home))
Low: 65K (2bd/864 sq. ft. home)
(111.5K (3bd/1,070 sq. ft. home))
 


Lathrop, CA
 
ACTIVE Status
Total # of residential properties for sale: 251 (259)
# of REO (foreclosure): 115 (110)
# of Short Sale: 112 (127)
Average # of days on market: 61 (83)
The median price of all homes for sale: $219,900 ($239,000)
The average price of all homes for sale: $253,016 ($248,545)
Lowest priced home: 2bd/871 sq. ft./$91,900
Highest priced home: 6bd/4,165 sq. ft./$1,275,000
 
PENDING Status
Number of properties currently under agreement: 169 (161)
# of REO: 146 (145)
Average pending price: $226,535 ($226,230)
 
Average pending home is 4 bedrooms, 2,298square feet at a price of $226,535 and 44 days on the market.
 
SOLD Status
Residential property sold over previous 30 days: 64 homes or $14,341,800 in sales (19 homes or $11,785,390 in sales)
REO’s sold in the last month: 62 (45)
Average sale price: $224,091 ($235,700)
Median sale price: $217,500 ($231,000)
High: 370K (6bd/3,969 sq. ft. home)
Low: 55K (2bd/936 sq. ft. home)
 
 
Summary:
Hello everyone! Welcome back to this fascinating and often bizarre ride we call the real estate market! We do have noteworthy happenings to report:
1.      Prices continue to fall as the numbers of REO (bank-owned) properties and short sale properties climb daily.
2.      SURPRISE! SURPRISE! Suddenly, there are multiple offers on nearly every property that is priced low and seems to be in a hardship situation! (This has never happened before in recent memory.) This is very exciting and also challenging for the buyers who have to make several offers, often are pre-qualified by the different “owner”/banks, and almost always have to go over asking price to get the property they want accepted...but it’s worth it! The deals are amazing! Be prepared to wait several days or even weeks for an answer and acceptance on REO’s, believe it or not.
3.      The investors and first-time homebuyers are out in droves! Apparently our price point just reached a point where, with 20% down an investor can break-even or have positive cash flow! It’s been years since we saw this available to our investors. There are myriad loan programs available for first-timers, but beware! The lending industry is changing almost daily, so what was approved last week may not be this week. Check with your lender often to be sure you’re okay during the lending/escrow process. Almost all of California has been labeled by lenders and appraisers as a “declining market”. That means at the end of the escrow they’ll demand a large down payment, higher interest, or who knows what else. Government loans like VA and FHA haven’t jumped on that bandwagon yet and are the best to use right now. 
4.      Seller’s, if you must sell now and are not in a hardship situation, please keep in mind that you are competing with all of the properties who are in a hardship. Marketing a home with “hardship” or “pre-foreclosure pricing” actually brings more buyers and offers. Remember, buyer’s don’t care if you aren’t in a hardship if the hardship homes are priced lower. They won’t pay you more because you’re a “normal” sale. So, if you’re serious about selling...price it at hardship sale pricing for the best results. (i.e., We put a home on the market at $299,000 when it was worth a little more. We had 4 offers in 5 days and we opened an escrow at $249,000! Amazing, huh? Think about it!)
 
So, that’s our update for the month. Remember, as always, markets come and go. People are buying and selling properties everyday...even now! If you want the best chance at a successful purchase or sale (hardship or not) give us a call or an e-mail.
Below are links to previous Tracy Area
Market Reports:

2/2/09 vs 1/2/09 http://www.tracyrealestateexpert.com/Blog/Tracy-Area-Market-Report-2209-vs-1209

1/2/09 vs. 12/1/08 http://tracyrealestateexpert.com/blog_post.asp?post=20478

12/1/08 vs. 11/3/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=19465

11/3/08 vs. 10/1/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=18625

10/1/08 vs. 9/2/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=17634

9/2/08 vs. 8/1/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=16678

8/1/08 vs. 7/9/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=15614

 4/4/08 vs. 3/4/08 http://tracyrealestateexpert.com/blog_post.asp?post=9503

3/14/08 vs. 2/14/08 http://tracyrealestateexpert.com/blog_post.asp?post=8914

3/14/08 vs. 2/14/08 http://tracyrealestateexpert.com/blog_post.asp?post=8913

2/14/08 vs. 1/11/08 http://tracyrealestateexpert.com/blog_post.asp?post=8227 

2/14/08 vs. 1/11/08 http://tracyrealestateexpert.com/blog_post.asp?post=8226

10/30/07 http://tracyrealestateexpert.com/blog_post.asp?post=5779

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The Barringer Team
Century 21 M&M and Associates
912 W 11th Street
Tracy CA 95376
209-833-7777
800-984-7282
Fax: 209-229-7426
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