Real Estate Information

A comment from a couple of days ago brought to mind a topic that I hear all the time. The difficulty of getting a loan in this current lending environment. I hear people all the time making the assumption that buyers can’t get loans and thus the real estate market is slow. It’s a patent excuse for some folks as to why things have been slow. “Well, nobody will lend!” is the refrain. I have to say, that’s not been my experience. Particularly in the last couple of years. I don’t really think there’s a problem getting a loan…if you’re qualified that is.

During the boom (bubble…whatever you want to call it) anybody who could fog a mirror could get a loan. Folks got loans who didn’t have jobs! Folks simply lied and stated FALSE income and got loans. Guess what? Those days are over. You have to be qualified to get a loan. Big surprise, right?  Even folks using FHA backed loans who have 3.5% down are qualified too. You can buy a home now…if you’re qualified. I know lots of lenders who are anxious to meet you and help you get a loan.

If you don’t have a job and you owe hundreds of thousands of dollars you probably can’t get a loan. For the rest of you, I’ll bet you can. Even with as little as 3.5% down. Our Lenders are the Best and very Honest just call or e-mail we will get you hooked up.

The following information is from the local MLS database, as of February 1, 2012 and is compared to (January 1, 2012).  The market here is still dominated by short sales and REO's. The short sales that have accepted offers show as Active Short Cont.  This means that they are only accepting back up offers and are contingent on lender approval of the short sale.  It is miss leading to the consumer as it looks like that there are more homes available than there really is.  We have broken that down for you in our stats now.  There are much fewer homes available to show that even the short sales are getting multiple offers. We have seen a handful of equity sellers and many "Flips". Interest rates remain low with 30 yr fixed at 3.99% and 15 year a 3.25%. 
This is a healthy market now. There is a definite lack of good homes for sale. This is because there are many buyers grabbing them as they come out. Just call or e-mail for an hassle free appointment or to just talk about the market anytime. 1-800-894-7282 or sales@tracyhomes.com

Tracy, CA

ACTIVE Status

Total # of residential properties for sale in the city of Tracy: 122 (288)

# of REO (foreclosures): 14 (25)

# of Short Sales: 65 (243)

# of Short Contingent: 162

Average # of days on market: 89 (89)

The median price of all homes for sale in Tracy: $228,350($229,900)

The average price of all homes for sale in Tracy: $229,367 ($232,128)

Lowest priced home: 2bd/810sq. ft. /$65,000

Highest priced home: 7bd/4427sq. ft. /$649,000

PENDING Status

Number of properties currently under agreement: 230 (198)

# of REO: 51 (36)

# of Short Sales: 122 (110)

Average pending price: $226,301 ($225,320)

Median pending price: $225,865 (229,950)

 SOLD Status

Residential property sold over previous 30 days: 73 homes (97)

REO’s sold in the last month: 20 (19)

Short sales sold in the last month: 27 (42)

Average sale price: $223,838 ($233,836)

Median sale price: $215,0000 ($230,000)

High: 435K (5bd/3767sq. ft. home)

Low: 70,000 (2bd/998 sq. ft. home)

Mountain House, CA

 ACTIVE Status

Total # of residential properties for sale in the city of Mountain House: 37 (83)

# of REO (foreclosures): 3 (3)

# of Short Sales: 16 (60)

# of Short Contingent: 39

Average # of days on market: 93 (88)

The median price of all homes for sale in Mountain House: $292,450 ($299,900)

The average price of all homes for sale in Mountain House: $292,450 ($285,386)

Lowest priced home: 2bd/1,262 sq. ft. /$115,000

Highest priced home: 6bd/3900 sq. ft. /$449,000

 PENDING Status

Number of properties currently under agreement: 70 (50)

# of REO: 6 (5)

# of Short Sales: 44 (32)

Median pending price: $265,276 ($293,963)

 Average pending price: 264,099 (285,154)

 SOLD Status

Residential property sold over previous 30 days: 19 homes  (30 homes)

REO’s sold in the last month: 4 (10)

Short sales sold in the last month: 8 (11)

Average sale price: $317,571 ($289,9487)

Median sale price: $336,000($280,000)

High: 400,000 (5bd/3949sq. ft. homes

Low: $154,000(3bd/1460 sq. ft. home)

Are you tired of earning less than 1/% interest on your bank CD or deposits? Or are you tired of the
volatile and erratic stock market? Real inflation is over 3% so receiving 1% or less on an interest
rate from a bank is only slightly better than hiding the money under the mattress.

This article will explain how you can redeploy your cash from bank deposits to buying single family
rental homes in an all cash transaction or utilizing an existing IRA into a self directed IRA in real
estate (single family rental homes). The cash return on at $135,000 investment would be between
6-8% annually. These home prices are generally need to be under $300,000 to make this model
work. Therefore houses should be in areas like Colton, (Inland Empire) or Stanton (lower priced end
of Orange County). Condo’s would likely be excluded due to their $300-$400 monthly association
dues.

Self Directed IRA or 401K Retirement Plans
Many of us have an IRA, 401K, Simple Plan retirement plans floundering in the stock market.
Mutual Funds, bank brokerage companies such as Merrill Lynch do not want you to roll these
existing plans into self directed purchases of single family rental homes as they are not capable of
managing or administering real estate investments. If the roll over is properly handled there is no tax
ramifications. Accredited Management Organizations (AMO) like JD Property Management, Inc. can
handle the rental, rent collections, maintenance, bill paying and supply you with a monthly income
statement and year end statement for your taxes and Plan Administrator.

Prohibited IRA Transactions

• Cannot convert existing property into self directed IRA’s
• No Collectibles (artwork, rugs, stamps)
• You may not personally guarantee payment of loan on these properties
• Any debt financing is subject to Unrelated Business Taxable Income (UBTI)
• Cost must not exceed Fair Market Value
• Owner or Family members cannot collect rents or pay expenses (need unrelated property
• management co.)

After months of wrangling, the long-awaited foreclosure settlement between the government and the banks appears to be at hand.

A $26 billion settlement was announced Thursday morning between the federal government, state attorneys general and the five biggest banks in the mortgage market: Ally Financial (the old GMAC), Bank of America, Wells Fargo, JP Morgan and Citigroup. (Editor's note: An earlier version incorrectly identified Ally Financial as being the old GE Capital.)

The settlement is being hailed as the biggest multi-state settlement since the 1998 tobacco agreement. But as Henry and I note in the accompanying video, the settlement is too small to really help the housing market, or even do much for individual victims of fraud and abuse. The deal may, in fact, hurt housing by sending a message to people who've stayed current on their mortgages that irresponsible behavior is what gets rewarded in America. That, presumably, is not the intention of policymakers but the "moral hazard" fallout from the settlement. More Americans may "walk away" from uneconomic loans, which will put additional pressure on local housing markets.

Furthermore, several experts note that for all the rhetoric about punishing corporate crimes and helping victims of abuse, the banks have once again gotten away with a slap on the wrist and may end up benefiting most of all from the settlement.

According to The Wall Street Journal, the settlement will be broken down as follows:

$5 billion in cash payments, including $1.5 billion to borrowers who were wrongly or illegally foreclosed on between September 2008 and December 2011. Borrowers could receive up to $2,000, depending on the number filing claims.

$20 billion in "credits" the banks will receive for principal write-downs and other aid to homeowners at risk of default, up to $20,000 per. This tally includes $3 billion for refinancing of mortgages currently under water.

(Yes, I know 20 + 5 = 25, not 26. It's unclear what the "extra" $1 billion will be earmarked for as details are still emerging on the plan.)

A Drop in the Bucket

Now, $26 billion is a lot of money but it's a drop in the bucket compared with the trillions of dollars of household wealth that's been lost since the bursting of the credit bubble in 2008. Furthermore, $2,000 is a small price to pay to homeowners who lost their homes in illegal foreclosures. The $20,000 mortgage modification is great, except the average deficit for underwater mortgages in America is $50,000.

In addition, the $20 billion isn't coming out of the banks' pockets; it's coming from investors and, ultimately, taxpayers.

"The mortgage principal write-downs are guaranteed to come almost entirely from securitized loans, which means from investors, which in turn means taxpayers via Fannie and Freddie, pension funds, insurers, and 401 (k)s," writes Yves Smith at Naked Capitalism. "That $20 billion actually makes bank second liens sounder, so this deal is a stealth bailout that strengthens bank balance sheets at the expense of the broader public." (See: Obama's Refi Plan Is Another Bank Bailout, Stockman Says: "The Worst Kind of Crony Socialism")

Meanwhile, several Fed watchers believe the central bank is gearing up for another round of quantitative easing that will focus on (wait for it) mortgage-backed securities. If QE3 is focused on MBS, it will further ease pressure on bank balance sheets and make any hit from modifications easier to digest.

Every state AG, with the exception of Oklahoma, has reportedly agreed to the settlement. One housing expert speculates key holdouts such as New York Eric Schneiderman and California's Kamala Harris agreed to the settlement in return for promises that the banks aren't being completely left off the hook.

During the State of the Union address last month, President Obama called for a new financial crimes unit to pursue mortgage-related fraud.

Not coincidentally, the SEC is now reportedly stepping up its investigations of illegal marketing and selling of mortgage-backed securities during the boom. The Journal reports Ally, Bank of America, Citigroup, Goldman Sachs and Deutsche Bank are among the firms being examined in the civil investigation.

Check out Century 21 Commercial for the Super Bowl.

http://www.forbes.com/sites/morganbrennan/2012/02/03/after-two-decades-real-estate-returns-to-the-super-bowl/

 It's a Winner!

Below is a common story happening in our office…

Yesterday a lady emailed about a home and said she heard my podcast about "Writing an Offer That Wins".  She went on about how she's written 20 offers with another Realtor and has never bought a home before.  She said it hit her when she heard my podcast.  She realized her agent was not aggressive enough, didn't have a strategy or any connections in the real estate industry. 

We made a few phone calls to help her out.  We spoke with the representative of the agent representing the investor.  Upon speaking with him, she purchased a home within 48 hours by simply following our instructions and using our "Buyer Advantage System". 

We would be happy to meet with you and explain our simple strategy for free with no obligations.  In our meeting, we will discuss the real estate market in all areas such as, Tracy, Manteca, Lathrop and Stockton.  

Here is Elysia’s; you can e-mail her to talk about her experience with the Barringer Team.  She wants to tell everyone because she is sooooo happy and that is what makes us happy. 

I was so excited about buying my first home.  But as I was going through the motions of finding a home, I found it wasn’t easy at all. 

I met with several Realtors, looked at so many homes for sale and submitted 20+ offers!!  So many offers I honestly lost count!!  I thought buying a home was going to be fun and exciting, but the experience I was having took all the excitement out of it.  I was so frustrated and discouraged that I almost gave up!  Until I read and heard Bill Barringer’s article about “writing a winning offer”.  I was so impressed with what he had to say that I immediately emailed him asking for his help.  Bill introduced me to Nicole, his buyer’s agent, who was absolutely wonderful!  We looked at ONE house, made ONE offer and my ONE offer was accepted the next day!!  I was speechless when Nicole told me my offer had won!  Working with the Barringer Team was the best decision I made. They are awesome and I would tell everyone, “Call them FIRST!” They are not lying when they say “It really is all about working with a Realtor who knows the business!”

Check it out for yourself at:  http://www.tracyrealestateexpert.com/Blog/Writing-An-Offer-That-Wins. 

Or click here to hear my podcast: http://www.talkrealty.com/billbarringer/audio/player.aspx

Feel Free to e-mail me, I would be happy to tell this story to anyone.

A happy new home owner!

Elysia Keel

Here is the perfect starter home or great investment. With 4 bedrooms and large yard just right for any family. 4 bedrooms, 2 full bathrooms Formal Living and Dining Room Dining room and hall have … This will be in our office exclusively for 3 days only. Once it hits the open market it will have multiple offers so CALL Today for your personal showing.

209-833-7777 or 1-800-894-7282

I am very proud to announce that for the 3rd year Century 21 M&M is the #1 Century 21 in the World and the Barringer Team is has been the Top Producing Team in Century 21 M&M for over 5 years. Click on this Link to see a preview of the Super Bowl Commercials we will be running.

http://www.century21.com/superbowl