www.TheWatsonRealEstateTeam.com // Simi Valley Real Estate

Getting Carpet Stains Out The Right Way

Stephanie & Larry Watson — Tue, 06 Sep 2011 22:45:00 GMT

Most modern carpet is treated at the factory with various substances that make them stain resistant. It should be noted, stain resistant and stain proof are not the same thing. There is not, as of yet, such a thing as a stain proof carpet. Spills and accidents happen but whether or not they permanently stain your carpet depends upon how fast and how you react when they do occur.

When liquid is accidentally spilled on carpet it is almost a natural reaction to begin scrubbing away at the affected area frantically. This is not the right thing to do. Vigorous scrubbing will spread the stain even further and possibly permanently damage the carpet at the same time. Instead the liquid should be blotted up with a clean white cloth or plain paper towels never use patterned or colored towels.

If you did not react to a spill in time and you are left with a stubborn stain on your carpet, commercial stain removers can be very helpful but they should be used with extreme caution. Before using any stain-removing agent on your carpet perform a spot test on an inconspicuous area to make sure it will not damage the fibers or cause discoloration. Whatever it might say on the label not all stain removers are suitable for use on certain types of carpet.

To do a spot test the right way, treat the test area with a few drops of your chosen stain remover. Gently press a clean white cloth over it for about ten to twenty seconds. Carefully examine both the cloth and carpet for color transfer or other damage. If there is no transfer or other damage it is fine to proceed.

To when removing the stain, use the smallest amount of solution possible and blot don't scrub. Once the stain looks like it is gone, rinse the affected area with cold clean water and blot it as dry as possible with another clean cloth.

Remember if you have a large, stubborn stain or a stain that just won’t come out, it is always best to contact a professional.

Some great ways to stay cool this summer

Stephanie & Larry Watson — Sat, 23 Jul 2011 20:22:00 GMT

Some great ways tostay cool this summer

1. WATER BALLOONS

Buy a few packages of water balloons, get a group of friends together,pull the hose out onto the lawn and get wet and wild.

2. WATER WAR

It’s war -- with water! Invitefriends over with their best water guns and Super Soakers. Formteams and let the war begin. Keep dry towels and cools drinks on hand for laterwhen it’s time to make peace.

3. RUN THROUGH THE SPRINKLER

Sprinklers aren’t just for watering lawns. Running through them isrefreshing, invigorating, fun… and you’ll get to see rainbows too!

4. ICE CREAM SUNDAE POT LUCK

Nothing says “cool” better than ice cream! Invite a bunch of friends overand ask everyone to bring an interesting ice cream flavor plus onetopping. Spend the day sampling different creative combinations ofsundaes. Keep in mind, this party will stretch across the entire day withice cream being your breakfast, lunch and dinner.

5. PERSONAL POPSICLE PARTY

For a cool and lazy afternoon, sit in front of a big fan eating popsiclesand listening to favorite tunes on your iPod. Popsicles come in a yummyvariety of flavors, and many are guiltlessly low in calories.

6. HANG OUT ON A HAMMOCK

Lazy days of summer are just not the same without at least one day ofswinging in a hammock, in the shade, with a cool drink and a cool book.

7. GROCERY STORE

Hang out in the freezer section of the nearest grocery store just likethe Bundy’s used to do. (not really suggested…)

8. IF MONEY IS NO OBJECT... HEAD FOR SNOWCOUNTRY!

Australia, Swiss Alps, Austria, Italy, France, Chile, and Argentina aresome destinations where you can find snow in August. In fact, summer in thenorthern hemisphere is winter in Australia, and August is the height of theirski season! Pack your bags and hop on a plane to one of these destinationsif you’re interested in snow skiing, snowboarding, snowshoeing or just plainrolling around in real snow in July, August and September.

WHATEVER YOU DO THISSUMMER, WE HOPE YOU HAVE A FUN SAFE SUMMER.

STAY COOL!

The "F" word and what to do???

Stephanie & Larry Watson — Mon, 27 Jun 2011 14:24:00 GMT

No one buys a home with the thought of losing it toforeclosure. However, there are unforeseen circumstances that may arise such aslosing your job, illness, disability or a divorce that may put you at risk oflosing your home when you cannot afford to make your mortgage payments. If youare facing a current financial hardship and are in default or about to defaulton your mortgage, you can avoid foreclosure by talking to your lender andseeking a real estate professional to help figure out which option is best foryou. Below is a list of some of the options you might consider.

Reinstatement of Your Loan: Reinstatementis where you pay any arrearages, including fees and costs. This allows you tobring your mortgage current.

Refinance: You must have equity torefinance. The new loan will payoff your current loan balance. Usuallyrefinancing is done when you have a variable rate mortgage and you refinance toa fixed-rate mortgage, which reduces your monthly mortgage payment.

Loan Modification: A loan modificationis when your lender agrees to modify your current loan because you are upsideon the mortgage. This means your home is now worth less than you owe yourlender. Typically, the lender lowers the interest rate and extends the loanterm. Some lenders may also reduce the principal.

Short Sale: Short sales have become a popularalternative for a borrower who cannot afford to keep his or her home and is upsidedown on a mortgage. If you decide to sell with a short sale, the lender mustapprove the sale because they will have to write off the difference between theshort sale proceeds and what you owe on the loan.

Deed in Lieu of Foreclosure: Adeed in lieu of foreclosure is when you transfer ownership of the home back tothe lender and walk away owing nothing. Not every lender will accept a deed inlieu so you need to ask your lender if this is an option. Bankruptcy: Bankruptcyis serious so you should make sure you have exhausted all other options beforeconsidering filing for bankruptcy. Bankruptcy temporarily stops foreclosureuntil the bankruptcy is discharged. Talk to a bankruptcy attorney to determine ifbankruptcy is an option for you. If you are facing foreclosure, you shouldspeak with a foreclosure defense attorney who can help you determine whichoption is best for your financial situation. You may also want to speak with acredit counselor to help you follow a budget and get back on the right track.

Remember if you have any questions we are here to help, Don’tbecome another victim!

REALTOR®'S Energy Audit Program

Stephanie & Larry Watson — Tue, 25 Jan 2011 22:29:00 GMT

Take advantage of a financial and environmental reward on your clients new home with C.A.R.'s REALTOR®'S Energy Audit Program. The California REALTOR®'S Energy Audit Program provides up to a $250 rebate on a Home Energy Rating System (HERS) home energy audit conducted by a certified HERS rater.

To Qualify For The Realtor Energy Audit Program (R.E.A.P.) Applicants Must:  

• Purchase a home between Oct. 1, 2010 and Dec. 31, 2011  

• Conduct a HERS home energy audit of the home before the close of escrow (as part of the Energy Efficient Mortgage*) or no later than 60 days after the close of escrow.

• Use a California REALTOR® in the transaction (referrals do not qualify)

• Primary single family residence must be purchased in California  

• Review and download the application. (Application must be submitted by an active  California REALTOR® )  

• See the R.E.A.P. flyer to get more detailed information  

You can find the nearest H.E.R.S. certified rater in your area at www.calcerts.com To find out how to upgrade your home with rebates, incentives and money savings energy improvements go to www.energyupgradecalifornia.com  

New California Real Estate Laws for 2011

Stephanie & Larry Watson — Wed, 29 Dec 2010 19:57:00 GMT

New California Laws for 2011

The recent end of the 2009-10 legislative session has brought the end of short sale deficiency judgments for first loans, and other new laws affecting REALTORS® and their clients. To view the full text of the following bills, go to www.leginfo.ca.gov.

No Short Sale Deficiencies: Starting January 1, 2011, a seller’s first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931. Governor Schwarzenegger vetoed Senate Bill 1178, our sponsored bill, which would have extended California’s anti-deficiency protection to refinance loans.

Energy Audit in Home Inspection Report: Beginning January 1, 2011, a home inspection and inspection report may, upon a client’s request, include an audit of the energy efficiency of a home, according to the standards of the Home Energy Rating Systems (HERS). REALTORS® are also strongly encouraged to give the newly released HERS booklet to residential buyers, because doing so provides a valuable shield from liability. Delivery of the booklet will be deemed to be adequate to inform the buyer about the statewide HERS program. Assembly Bill 1809 and California Civil Code section 2079.10.

Restriction on Adverse Possession Claim: Effective January 1, 2011, a claim for adverse possession requires, among other things, certified records of the county tax collector showing that all state, county, or municipal taxes have been timely paid for the five-year period the property has been occupied and claimed. Existing law merely requires proof that taxes have been paid for the five-year period, not certified proof of timely payments. Assembly Bill 1684.

Enforcement of MLO Requirements: Effective January 1, 2011, anyone acting as a mortgage loan originator (MLO) without an MLO license endorsement will be guilty of a crime punishable by six months imprisonment, plus a $20,000 fine. Furthermore, a broker cannot employ or compensate a real estate licensee for MLO activities unless that licensee has a license endorsement. This law has also given the Department of Real Estate (DRE) the authority to deny or revoke a MLO license endorsement or take other action. This law also amends the MLO requirements for finance lenders and residential mortgage lenders under the Department of Corporation. Senate Bill 1137.

Post-Foreclosure Protection for Tenants: Commencing January 1, 2011, a notice to terminate a residential tenant who remains after a foreclosure sale must generally include a statutory notice of the tenant’s rights. This requirement, which sunsets on January 1, 2013, applies to an immediate successor-in-interest for one year after a foreclosure sale. The tenant’s rights must be on a separate cover sheet or, for a 90-day termination, incorporated into the notice to terminate. Another provision of this bill protects a residential tenant’s credit by generally prohibiting the court clerk from revealing unlawful detainer court records unless the plaintiff prevails at trial. Senate Bill 1149.

Tenant Protection for Domestic Violence Victims: Starting January 1, 2011, a residential landlord cannot terminate or fail to renew a tenancy based on domestic violence against the tenant or tenant’s household members as specified. This law applies if the person restrained from contact with the tenant by court order or named in a police report is not also a tenant of the same dwelling unit. If the protected tenant subsequently allows the person restrained to visit the property, or the landlord reasonably believes the person restrained poses a physical threat to others or to quiet possession by other tenants, the landlord may serve a three-day notice to correct or quit. To further ensure safe housing for domestic violence victims, this law also requires that, for leases entered into after January 1, 2011, a landlord changes the exterior locks of a protected tenant’s dwelling unit within 24 hours after the tenant provides a written request and supporting court or police documentation as specified. Senate Bill 782.

Protections Against Real Estate Fraud: Effective January 1, 2011, new laws protecting consumers from real estate fraud include, without limitation, the following: (1) Expanding the foreclosure consultant law to include someone who performs a forensic audit of a residential mortgage loan (Assembly Bill 2325); (2) Requiring any mailed solicitation that offers to provide a copy of an owner’s grant deed or other title records for a fee to include a prominent statutory disclosure that the copy service is not associated with any governmental agency and that the homeowner can obtain such records from the county recorder (Assembly Bill 1373); and (3) Increasing the criminal punishment for renting out a residential dwelling without the owner’s consent from six months imprisonment plus a $1,000 fine, to one year imprisonment, plus a $2,500 fine (Assembly Bill 1800).
Other Laws: Some of the other laws that may interest REALTORS® include, but are not limited to, revisions to the mechanics’ lien law (Senate Bill 189); clarification that the prohibition against discrimination of tenants based on source of income pertains to lawful and verifiable income (Senate Bill 1252); extension of the CalVet Home Loan program to include 2-to-4 residential units (Assembly Bill 2087); and lien enforcement by a municipal utility district for a tenant’s delinquent charges (Senate Bill 1035).

Realegal® is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.

Edited by: Stella Ling, stellal@car.org

Turkey Roasting Tips

Stephanie & Larry Watson — Thu, 25 Nov 2010 17:27:00 GMT

Turkey Roasting Tips:

Roasting a turkey ***-side down for the first hour will keep the turkey moist. Turn turkey over after first hour to finish cooking.

Celery layered at the base of a roasting pan adds flavor to the juices for delicious gravy.

If turkey is browning too quickly, make a tent out of aluminum foil and place overthe top of the bird.

Rub a stick of butter over the turkey before roasting for a more moist turkey.

Places sliced lemon, onion and an apple into the cavity of a turkey while roasting, the flavor will create a tasty juice for gravy.

If you chose to use a roasting bag, open the bag for the final 15 to 20minutes of roasting to allow the skin of the turkey to crisp.

Place the turkey *** side up on a cooking rack in a shallow roasting pan and place the pan inthe center of the lowest rack of a preheated oven

Roast the turkey uncovered at a temperature ranging from 325°F to 350°F. Higher temperatures may cause the meat to dry out, but this is preferable to temperatures that are toolow which may not allow the interior of the turkey to cook to a safe temperature. Some cooks prefer to roast the turkey at temperatures as high as 450°F to 500°F for the first 30 minutes to brown the surface and then reduce the heat to 325°F. It is important to keep the oven door closed as much as possible while the turkey is roasting to maintain a constant temperature in the oven. Basting a turkey provides a crispy, golden skin, but it does not add moisture or flavor to the interior of the turkey. Basting should be kept to a minimum so that the oven door is not opened too often. The more times the oven door is opened, the longer the cooking time will be due to loss of heat. Aluminum foil can be tented over the turkey near the end of the cooking time to keep the skin from becoming too brown.

Approximate Roasting Times

WholeTurkey Cooked at 325º

Weight	8 to 12 pounds	12 to 14 pounds	14 to 18 pounds	18 to 20 pounds	20 to 24 pounds	24 to 30 pounds
Unstuffed	2¾ to 3 hours	3 to 3¾ hours	3¾ to 4¼ hours	4¼ to 4½ hours	4½ to 5 hours	5 to 5¼ hours
Stuffed	3 to 3½ hours	3½ to 4 hours	4 to 4¼ hours	4¼ to 4¾ hours	4¾ to 5¼ hours	5¼ to 6¼ hours

Oven-Safe Bag

The preparation and roasting steps are identical to the steps used for preparing and roasting a turkey without an oven bag except for the following additional steps:

Add a small quantity of flour to the bag and shake it to coat the inside of the bag.

Place the turkey inside the bag and close the opening with the twist tie provided.

A few holes should be punctured in the bag to allow some steam to escape duringthe roasting process.

The oven-roasting bag keeps the turkey very moist and it speeds up the roasting time. The following cooking times can be used as a guideline for an unstuffed turkey roasted in an oven bag in a 350°F conventional oven. An additional 30 minutes or more may berequired for a stuffed turkey. The only true gauge for determining proper doneness is with a meat thermometer. The *** must reach an internal temperature of 170°F and the thigh must reach 180°F.

8 to 12 pounds	12 to 14 pounds	14 to 18 pounds	18 to 20 pounds	20 to 24 pounds	24 to 30 pounds
1½ to 2 ¼ hours	2¼ to 2¾ hours	2¾ to 3½ hours	3½ to 4 hours	4 to 4½ hours	4½ to 5 hours

Safety First...

Using a thermometer is the only safe way to be assured that food has reached a temperature high enough to destroy harmful bacteria. The following are guidelines to safeguard your friends and family during the holiday season:

Turkey must reach an internal temperature of 185º F

Insert a fork into the thigh or *** of a turkey, if juices are clear the turkey is fully cooked

Do not refreeze thawed poultry

Within 2 hours of the start of your meal, all perishable foods must be refrigerated

If you cook a turkey that comes with a pop-up timer, the cooking process can be almost fool proof. However, if you stuff the turkey, you still need to use a meat thermometer to check the temperature of the stuffing to make sure it has reached a minimum temperature of 165°F.

Leftover stuffing that was originally cooked inside the turkey and has been removed should be reheated to a minimum temperature of 165°F.

Stuffing that is placed inside the turkey is often undercooked because many cooks do not allow for the extra cooking time required for a stuffed bird. This increases the chances of food poisoning.

The meat near the bones of a turkey (or any poultry) may still look a bit pink even if a meat thermometer indicates that the turkey is fully cooked. This is because younger turkeys have bones that are more porous than older turkeys, which allows red pigment toleach out from the bones to the nearby meat during the cooking process. The turkey is safe to eat as long as the proper internal temperature has been reached and the juices run clear.

DON’T FORGET, daylight savings is ending tonight.

Stephanie & Larry Watson — Sat, 06 Nov 2010 16:41:00 GMT

DON’T FORGET,daylight savings is ending tonight.

5 Things to Do Whenyou turn Your Clock back this weekend…

Check on operation or schedule the maintenance ofthese common home items at every clock change!

Checkyour Smoke Detector and Replace the Batteries! 

Ifyou have a smoke detector that runs on batteries, now is the time to replace them! In addition, it may be a greattime to consider upgrading to a new smoke detector that runs on the power of your

home!

Checkor Replace Carbon Monoxide Detectors 

If youhave a CO detector in your home, check the functionality and like the smoke detector, replace the battery!

Scheduleyour Fall Furnace Tune Up! 

Callyour local HVAC Contractor and schedule a spring tune-up of your furnacesystem and have the furnace filter replaced! If you wait until its cold, or the unit breaks, you will wait longerand pay more!

ChangeYour Whole House Humidifier Pad! 

Ifyou have a duct humidifier like a mister 50 or a water pad model, now is the time to change the pad!

Change your Refrigerator Water Filter! 

Often overlooked is the refrigerator water filter! These disposablefilters get dirty like any other, and should be changed out twice a year!

Halloween Trick-or-Treating Guide: Safety Checklist

Stephanie & Larry Watson — Fri, 29 Oct 2010 14:50:00 GMT

*A parent or responsible adult should always accompanyyoung children during

theirneighborhood rounds.

*Remind Trick-or-Treaters to:

-Carry a flashlight.

-Walk, don't run.

-Stay on sidewalks.

-Obey all traffic and pedestrian regulations.

-Look both ways before crossing the street, and always walk as a groupat

-established crosswalks.

-Avoid hiding or crossing the street between parked cars.

-Stay in familiar neighborhoods.

-Avoid cutting across yards or driveways.

-Wear a watch that can be read in the dark.

-Make sure costumes don't drag on the ground.

-Avoid wearing masks while walking from house to house.

-Approach only houses that are lit.

-Be cautious of animals and strangers. Never enter a stranger's home orcar

for a treat.

*Accept treats only indoorways, never inside houses.

-Say thank you after receiving your treats.

-Bring treats home to be inspected before eatingany.

**Notify law enforcementauthorities of any suspicious or unlawful activity.

0 false 18 pt 18 pt 0 0 false false false /* Style Definitions */table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-ascii-font-family:Cambria; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Cambria; mso-hansi-theme-font:minor-latin;} 0 false 18 pt 18 pt 0 0 false false false /* Style Definitions */table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-ascii-font-family:Cambria; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Cambria; mso-hansi-theme-font:minor-latin;}

7 Reasons to Own Your Home

Stephanie & Larry Watson — Mon, 18 Oct 2010 22:33:00 GMT

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay onyour mortgage, your property taxes, as well as some of the costs involved inbuying your home.  

2. Appreciation. Real estate has long-term, stable growth in value. Whileyear-to-year fluctuations are normal, median existing-home sale prices haveincreased on average 6.5 percent each year from 1972 through 2005, andincreased 88.5 percent over the last 10 years, according to the NATIONALASSOCIATION OF REALTORS®. In addition, the number of U.S. households isexpected to rise 15 percent over the next decade, creating continued highdemand for housing.  

3. Equity. Money paid for rent is money that you’ll never see again,but mortgage payments let you build equity ownership interest in your home. 

4. Savings. Building equity in your home is a ready-made savings plan.And when you sell, you can generally take up to $250,000 ($500,000 for amarried couple) as gain without owing any federal income tax.  

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise overthe years so your housing costs may actually decline as you own the homelonger. However, keep in mind that property taxes and insurance costs willincrease.  

6. Freedom. The home is yours. You can decorate any way you want andbenefit from your investment for as long as you own the home.  

7. Stability. Remaining in one neighborhood for several years gives you achance to participate in community activities, lets you and your familyestablish lasting friendships, and offers your children the benefit ofeducational continuity. 

California home sales are expected to edge up slightly in 2011

Stephanie & Larry Watson — Fri, 08 Oct 2010 03:03:00 GMT

CALIFORNIA ASSOCIATION OF REALTORS® releases itsCalifornia Housing Market Forecast for 2011: Small increases projected in bothhome sales and median home price

LOS ANGELES (Oct. 4) – A weaker-than-expectedeconomic recovery will result in a projected decline in California home salesfor 2010, although home sales are expected to edge up slightly in 2011,according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) “2011 CaliforniaHousing Market Forecast” released today.

California home sales for 2010 are forecast todecline 10 percent from the 2009 sales figure of 546,500 homes sold. Sales in 2011 are projected to increase a lackluster 2 percent to 502,000 unitscompared with 492,000 units (projected) in 2010. After two consecutiveyears of record-setting price declines, the median home price in Californiawill climb 11.5 percent in 2010 to $306,500 and increase another 2 percent in2011 to $312,500, according to the forecast.

“California’s housing market will see smallincreases in both home sales and the median price in 2011 as the housing marketand general economy struggle to find their sea legs,” said C.A.R. PresidentSteve Goddard. “The minor improvement in the housing market next yearwill be driven by the slow pace of recovery in the economy and modest jobgrowth. Distressed properties will figure prominently in the market nextyear, but we also expect to see discretionary sellers play a larger role,” hesaid.

“As the U.S. economy continues its tepid recovery,we’ll see some improvement in California’s economy,” said C.A.R. Vice Presidentand Chief Economist Leslie Appleton-Young. “We expect a net jobs increaseof approximately 1.4 million jobs in California for the year to come and animprovement in unemployment figures,” she said.

“The situation in the California housing marketcontinues to be a tale of two housing markets,” said Goddard. The segment ofthe market under $500,000 has been driven by distressed sales, while higher-pricedareas of the state have been constrained by restricted financing options, andincreasingly have experienced an increase in the number of distressedproperties. Sales in the low end have been constrained by a lack ofinventory, putting upward pressure on prices. Multiple offers onlower-end homes have been very common, according to Goddard.

“A lean supply of available homes for sale willdrive prices up at the low end, but larger inventories and limited, lessattractive financing will cause continued softness at the high end,” saidAppleton-Young. “There’s some indication that lenders will accelerate thenumber of foreclosures coming on market, further adding to the housing supply,but we do not anticipate that lenders will flood the market with distressedproperties,” she said.

“The wild cards for 2011 include federal housingpolicies, actions of underwater homeowners, and the strength of the economicrecovery,” said Appleton-Young. “What is certain is that favorable homeprices and historically low interest rates will continue to make owning a homein California attractive for those who are in a position to buy,” she said.

Conforming Loan Limits Extended Through 2011

Stephanie & Larry Watson — Fri, 01 Oct 2010 22:46:00 GMT

We’re starting off the new month with some great news from Washington, DC today.

Late yesterday, President Obama signed a resolution that included a provision extending through fiscal year 2011 the current conforming loan limit of $729,750 for high-cost areas, including many areas in California. The same limits will also be extended to loans insured by the Federal Housing Administration.

Without the extension, which was set to expire at year’s end, FHA loan limits would have dropped by as much as 50 percent in some areas, and the conforming loan limit would have dropped by about 40 percent. Furthermore without the extension of the higher loan limits, many of California’s borrowers would have a harder time refinancing homes and obtaining financing for new home purchases. We hope Congress will now focus on making higher loan limits permanent.

C.A.R and the NATIONAL ASSOCIATION OF REALTORS® (NAR) have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits from $417,000 to $729,750 in high-cost areas and extending the limits through 2009. Yesterday’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through Sept. 30, 2011.

You Want to buy a Foreclosure?

Stephanie & Larry Watson — Sat, 08 May 2010 01:31:00 GMT

You want to buy aforeclosure? Remember, there are both great opportunities and great pressuresand pitfalls in this market.

First, you have to decideat what stage of foreclosure you want to buy. There are three options: 1.pre-foreclosure; 2. sheriff's auction; 3. repossession, called REO (for realestate owned by the bank).

"The safest and bestway to buy is when it's a bank-owned property," said Rick Sharga, aspokesman for RealtyTrac, the online marketer of foreclosure properties.

Pre-foreclosure: Thesehomes are in the foreclosure process, but they have yet to be sent to auction.Owners are typically trying to unload them because they are"underwater," owing more on the homes than they are worth.

As a result, potentialbuyers must negotiate a deal with the lender as well as the owner. That makesbuying at this stage of foreclosure complicated and slow. But, you have theadvantage of being able to inspect the home before purchase -- which isn't thecase in other types of foreclosure sales. Sharga warned, however, that pricesare usually higher than at other stages of foreclosure.

Sheriff's auction: Thesesales yield the lowest prices, but they are fraught with difficulties. Oftenthe house is unavailable for inspection, leaving buyers with a long list ofexpensive repairs -- and much larger bill than they intended. This stage isusually best left to the professionals, the contractors and investors whoregularly bid on these places and know what they're doing.

Repossession: This occursafter the home has gone through a sheriff's auction but does not sell and thebank gains possession of the property. Homebuyers may not get the best bargainsduring this stage, but they can nearly always perform a thorough inspectionbefore closing, minimizing costly surprises. Plus, the property comes with aclear title.

In addition, the banksselling these places may extend preferential financing terms to the buyers andmay have made some repairs before putting the property on the market.

Even in this safer stage,though, homes are still usually sold in "as is" condition. "Thatmeans the bank won't pay for cosmetic issues," said Adam Wiener, aspokesman for the Redfin, the online real estate marketer. "Although, theywill often pay for some or all of repairs that are health and safety issues.That makes the home inspection even more critical."

He also pointed out that,since you're buying from a corporation, not an individual, the buying processcan be faster, so be prepared to move quickly. Many times a listing goes on saleon a Friday and is sold over the weekend.

"The buyers and theiragents need to be on top of everything from the inspection to thefinancing," said Wiener. "Some banks will even charge a per diem feefor late closings."

Once you've decided whichtype of home to buy, there are several common mistakes foreclosure buyersshould take care to avoid. These include:

Getting caught up in abidding frenzy: The banks often under-price repossessions, hopingto generate excitement, attract multiple bids and sell them quickly. Theproblem is, as in any auction-type sale, bidders get excited and pay too much.

"Remember," saidSharga, "there are 800,000 REOs in the banks' inventories. There'll beanother home to bid on tomorrow."

Underestimating repaircosts: Take full advantage of the home inspection and don't delude yourselfabout much the repairs will cost.

"Take along someonewho can give you a good estimate of how much repair costs will come to,"said Sharga.

Redfin coaches its agentsto warn buyers to factor in a cushion of 10% to 20% of the purchase price topay for unexpected repairs. "If you end up not using it, go on vacationafter 6 months," Wiener said.

Not knowing whatcomparable properties cost: This is important in any market butespecially in this endeavor. In high foreclosure areas, prices can be erodingvery quickly. You want to have the latest homes sale prices on repossessedproperties and try to keep your bid comparable or lower.

Buying in a neighborhoodflooded with foreclosures: This is most important for people buying forthe short-term. Any neighborhood saturated with REOs and foreclosures may beheaded for further price falls. If you're planning to relocate within a fewyears or buying a bigger house, that could mean selling at a loss. A betterbet, if you can find it, is to buy the only foreclosed home in an otherwisestable community. That's more likely to hold its value.

Not having financing inplace: If you don't have a pre-approved mortgage, you're really not in themarket. "You have to be able to move quickly," Sharga said.

Banks don't want todilly-dally on sales; they're losing money every day that homes sit on themarket. That means they'll often jump on the highest bid with the bestfinancing already in place.

Having a loan beforehandcarries another advantage: It tells you how much credit you have available. Youwon't spend time shopping for homes that are too expensive.

Remember that pre-approved financing is different from pre-qualifiedfinancing; it means the loan is ready to go. Pre-qualified is more like anopinion of a loan officer and there's still work to be done before finalapproval

Fed leaves key rate unchanged Released 4/28/2010

Stephanie & Larry Watson — Thu, 29 Apr 2010 05:10:00 GMT

Information received since the Federal Open MarketCommittee met in March suggests that economic activity has continued tostrengthen and that the labor market is beginning to improve. Growth inhousehold spending has picked up recently but remains constrained by highunemployment, modest income growth, lower housing wealth, and tight credit.Business spending on equipment and software has risen significantly; however,investment in nonresidential structures is declining and employers remainreluctant to add to payrolls. Housing starts have edged up but remain at adepressed level. While bank lending continues to contract, financial marketconditions remain supportive of economic growth. Although the pace of economicrecovery is likely to be moderate for a time, the Committee anticipates agradual return to higher levels of resource utilization in a context of pricestability.

With substantial resource slack continuing torestrain cost pressures and longer-term inflation expectations stable,inflation is likely to be subdued for some time.

In light of improved functioning of financialmarkets, the Federal Reserve has closed all but one of the special liquidityfacilities that it created to support markets during the crisis. The onlyremaining such program, the Term Asset-Backed Securities Loan Facility, isscheduled to close on June 30 for loans backed by new-issue commercial mortgage-backedsecurities; it closed on March 31 for loans backed by all other types ofcollateral.

Voting for the FOMC monetary policy action were: Ben S. Bernanke,Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke;Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; andKevin M. Warsh. Voting against the policy action was Thomas M. Hoenig, whobelieved that continuing to express the expectation of exceptionally low levelsof the federal funds rate for an extended period was no longer warrantedbecause it could lead to a build-up of future imbalances and increase risks tolonger run macroeconomic and financial stability, while limiting theCommittee’s flexibility to begin raising rates modestly.

NEW Home Buyer Tax Credits start MAY 1st, 2010

Stephanie & Larry Watson — Sat, 24 Apr 2010 19:17:00 GMT

These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010.

These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.

The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. For example, if a taxpayer is allocated $10,000 for the New Home Credit, the $100 million cap for the New Home Credit will only be reduced by $7,000. If a taxpayer is allocated $10,000 for the First-Time Buyer Credit, the $100 million cap for the First-Time Buyer Credit will only be reduced by $5,700. The 70 and 57 percent reductions do not impact the amount that can be claimed by the taxpayer.

We will allocate the tax credits on a first-come, first-served basis.

Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.

Taxpayers will not be eligible for either tax credit if any of the following apply:

The taxpayer was allowed a 2009 New Home Credit.
The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)
The taxpayer or the taxpayer’s spouse/RDP is related to the seller.
The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.

COMPLETE INFORMATION @ http://www.ftb.ca.gov/individuals/new_home_credit.shtml

Buying vs. Renting cost gap narrows

Stephanie & Larry Watson — Sat, 24 Apr 2010 18:40:00 GMT

Thinking of buying a home? Consider this: The gap between monthly rents and mortgage payments is at its lowest level in almost 20 years.

In some markets, the difference can be less than $100, according to a national study conducted for The Associated Press by Marcus & Millichap Real Estate Investment Services.

The study, part of a week-long look at homeownership by the AP, found years of falling home prices and low interest rates have created the ultimate buyer's market. But while buying a home is more affordable, it isn't necessarily easier.

Tougher lending standards have made it harder to qualify for a home loan, and unemployment is at 9.7 percent. Tax incentives for homebuyers will expire April 30, and interest rates are expected to increase this year.

"Statistically, it's a great time to buy," said Hessam Nadji, managing director of Marcus & Millichap. "Psychologically, the consumer doesn't feel like it's a great time to buy."

The analysis of 45 metro areas found the difference between the monthly mortgage payment on a median-priced home and the median rent is down to $256. The last time that gap was anywhere near that small was in 1993 when it fell to $264, according to the study.

Marcus & Millichap used median prices for the last three months of 2009 and calculated mortgage payments by assuming a 10 percent down payment and a 30-year fixed loan at 5.07 percent, among other factors. It also assumed borrowers paid for private mortgage insurance and didn't include repair costs and tax benefits.

In Detroit, which has been hard hit by unemployment and falling home values, it's cheaper to rent than own, though not by much - $75. The difference is less than $200 a month in markets such as foreclosure-ravaged Las Vegas, Atlanta, Cleveland, Indianapolis and Orlando, Fla.

Renting remains far more affordable than owning in traditionally pricer markets such as New York. In Manhattan, the gap is more than $4,000. Renters will save $1,000 or more a month in metro areas such as Los Angeles, Seattle, San Diego, San Francisco, and San Jose, Calif.

But even in some of these markets, longtime renters are testing the market.

Whitney Morris and fiance David Welsch bided their time as home prices dropped before agreeing to buy a two-bedroom, condo in San Francisco listed at $739,000.

"A couple of years ago, if we had purchased a place, we would have been living in a shoe box that needed a lot of renovations," said Morris, 29, who had saved up more than $100,000 to make a 20 percent down payment. "And now we can afford a place that feels really good, that we know we can grow into."

The couple's monthly payment, around $3,000, will cost about $800 more than the rent they now pay for a one-bedroom apartment. But some of that will be offset because they'll be eligible for a homeownership tax deduction. In addition, as first-time buyers, they can qualify for a federal tax credit of up to $8,000 and up to another $10,000 in California state tax credits.

There are also significant tax benefits, including capital gains deductions for property taxes and loan interest. A home appreciates in the long run and acts as a hedge against inflation. It helps diversify your assets, builds equity and provides a means of forced savings as you slowly pay down the principal.

Real estate also is a leveraged investment, unlike most others. If you put 10 percent or $20,000 down on a $200,000 house and it appreciates to $300,000, that translates to a 500 percent return.

On the flip-side, homeownership often comes with hefty and unexpected repair bills. And values don't always go up. Nearly a quarter of all homeowners with a mortgage owed more on their loans than their homes are worth in the last three months of 2009, according to First American CoreLogic.

In some areas, renters must be willing to move elsewhere to become homeowners.

Fred Archambault and his wife, Amy, rented an apartment in West Hollywood, Calif., for 10 years.

"We loved the neighborhood, but when it came down to it, the main factor is we couldn't afford to buy anything in the neighborhood," said Archambault, 32. "We didn't want a duplex or a condo. We wanted a single-family house with a yard and some space."

In February, the couple found that house 30 miles north in Santa Clarita. The property has four bedrooms, two baths and a pool. It cost $385,000, less than half the median price of a single-family house in West Hollywood.

"Our mortgage is only a few hundred dollars more than our rent; why not own?" said Archambault, a record producer.

Of course, this won't last forever.

Home prices are expected to start rising before rents, Nadji said. This is especially true in coastal markets such as Los Angeles, San Francisco and New York.

"You're actually going to see affordability decline in those very traditionally expensive housing markets," Nadji said. "It will be more attractive to rent than to buy."

No More State Tax on Forgiven Debt // Short Sale, Foreclosure, Loan Modification

Stephanie & Larry Watson — Wed, 14 Apr 2010 03:13:00 GMT

Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law yesterday, Senate Bill 401 generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a "qualified principal residence," borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.

"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board's Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service's Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

Fed leaves key rate unchanged 3/16/2010

Stephanie & Larry Watson — Fri, 19 Mar 2010 16:14:00 GMT

Information received since the Federal Open Market Committee met in January suggests that economic activity has continued to strengthen and that the labor market is stabilizing. Household spending is expanding at a moderate rate but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly. However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls. While bank lending continues to contract, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability.

With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve has been purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt; those purchases are nearing completion, and the remaining transactions will be executed by the end of this month. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.

In light of improved functioning of financial markets, the Federal Reserve has been closing the special liquidity facilities that it created to support markets during the crisis. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities and on March 31 for loans backed by all other types of collateral.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action was Thomas M. Hoenig, who believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted because it could lead to the buildup of financial imbalances and increase risks to longer-run macroeconomic and financial stability.

Top home buying mistakes revealed

Stephanie & Larry Watson — Thu, 11 Mar 2010 02:31:00 GMT

The first rule of inspecting a home you want to buy is to stay intimately involved in the process, and to leave no stone unturned. If you're busy or traveling during the time period, you have to complete your due diligence investigations by enlisting the aid of a friend you trust to stand in on your behalf -- someone who will keep you well informed as inspections proceed.

Buyers want to be sure they get a good deal on the home they buy. This is especially so if they're buying in a soft market. Whether a property is a good deal depends on its condition, its location and the price paid.

Most buyers don't take the inspection process far enough. They hire a home inspector to do a general home inspection to make sure that all systems are in working order and that there aren't any serious defects that might affect their decision to buy or not.

For some buyers, this constitutes their due diligence inspection of the property. But, in many cases, simply having a home inspection done is not enough to ensure that you don't end up regretting you bought the property.

Most home inspectors recommend further inspections. Some buyers take these admonitions seriously and some don't. A recommendation that is often overlooked is to research the permit history.

If you don't check the permit history, you could find out later, when you want to take out a permit for a renovation, that there are expired permits for work that never received a final approval from the city inspector. You might be required to reinstate the expired permits and finish the job to the building department's satisfaction before you can take out a permit for a new project. This could be expensive, take time, and at the least, be a hassle.

Another item buyers ignore is the cost of routine home maintenance. Some homes cost more to maintain than others. Well-maintained homes will be easier to maintain because you'll have little deferred maintenance to repair.

Ask the sellers for information about how much they pay per year for tree trimming, painting, and servicing house systems such as the roof, furnace and drainage systems. Also ask how much the utility bills run in an average winter and summer month. All of this will factor into the cost of owning the home. Buyers usually focus on the price they'll pay upfront for a house. How much it will cost them over time should also be factored into the total cost of home ownership.

HOUSE HUNTING TIP: Buyers tend to pay more attention to the condition of the home they're buying than they do to finding out all they need to know about the area in which they'll be living. The home you buy is not a good value if you find out a year later that the neighborhood is declining. Make sure you find out if homeowners are moving in or out of the area. If you see a lot of remodeling going on in a neighborhood, this is a good sign that the homeowners plan to stay put. Another good sign is if there are few listings and the ones that come on the market sell quickly. This indicates a high demand for the neighborhood.

You'll also want to find out about crime in the neighborhood, and whether or not there is development planned in the area that might have a positive or negative impact on the neighborhood. And check into the general state of the local economy.

Third annual Southern California Home Buyer’s Fair

Stephanie & Larry Watson — Sun, 31 Jan 2010 18:07:00 GMT

Don’t miss the third annual Southern California Home Buyer’s Fair
Thousands of potential home buyers are expected to converge the weekend of March 13 and March 14 at the
Los Angeles Convention Center for the FREE third annual Southern California Home Buyer’s Fair. The event
is sponsored by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the Los Angeles Times.
The Southern California Home Buyer’s Fair, open 10 a.m. to 5 p.m., Saturday, March 13, and 11 a.m. to 4
p.m., Sunday, March 14, features more than 50 educational “how-to” seminars designed to help home buyers
navigate today’s real estate market with confidence and peace of mind. Seminar topics range from
understanding home prices and monitoring and fixing credit to applying for a mortgage and the importance of
the home inspection. Several of the sessions also will be offered in Spanish.
The event is free to the public. In addition, the first 200 attendees each day will receive a free movie ticket (one
ticket per person).
C.A.R. also has created a consumer fact sheet about the event. Please visit http://www.homebuyersfair.com/
for more information.

Gov. proposal to expand the $10,000 homebuyer tax credit

Stephanie & Larry Watson — Thu, 07 Jan 2010 18:50:00 GMT

Gov. proposes extension, expansion of home buyer tax credits
During his State of the State address, Governor Schwarzenegger today announced his 2010 proposals for California. Included in the proposals is a recommendation to set aside $200 million for a new round of $10,000 state tax credits for first-time home buyers. The proposal expands upon the initial $10,000 state tax credit by including both new and existing homes. Last year’s tax credit applied only to new homes.

The tax credit could be combined with the recently extended and expanded federal tax credit for home buyers.

For more info go to:

http://gov.ca.gov/press-release/14124/

Tips to boost "Curb Appeal"

Stephanie & Larry Watson — Tue, 22 Dec 2009 23:20:00 GMT

You've no doubt heard the term "curb appeal," which is the first impression that your home makes when a visitor arrives. Whether you have your home up for sale or just want things to look a little nicer when you or someone else pulls up out in front, the best place to start is by giving the front of your home a critical examination.

Driveway: A driveway, by necessity, tends to be a fairly dominant feature, and it is often one of the first things that a person sees when they arrive at your home. If you have a concrete driveway that is oil-stained, check with your local home center for cleaners that can spruce it up. While you're there, get a crack repair compound and take care of smaller cracks before they become larger. For asphalt driveways, a seal-coat can often make a big difference in appearance and help prolong the asphalt as well.

For concrete or asphalt that is badly damaged, it's time to be thinking about replacement. You can replace the driveway with the same material as before, or consider an updated look by using paving stones instead -- they hold up well in all types of weather, and can even be a very satisfying do-it-yourself project.

Walkways: When someone arrives, is there a clear and safe path to your front door? You may not mind walking across your front lawn, but guests and prospective buyers would definitely prefer a walkway. There are lots of options for creating a new front walkway or replacing an existing one, so check out your home center or some landscaping magazines for ideas.

Landscaping: Speaking of landscaping, do you actually have any? Is it well maintained? Few things look worse out front than an overgrown or neglected yard, and you can often remedy things with a little hard work and some minimal expense. Cut back or remove trees and bushes that have gotten out of control. Feed the lawn to get it to green up again, or consider removing all or part of it and replacing it with low-maintenance materials.

If you have planter beds, be sure they're weeded and have fresh bark in them. Plan your landscaping to create a visual appeal by not having all the same type of plant. Intersperse some plants that provide spots of color at different times of the year, and mix plants for different heights as well.

Shade Trees: Consider adding a couple of new shade trees in front. Trees are good for the environment in general; they help a home look more established and appealing; and they can help lower your summer cooling costs as well. Trees look best planted in odd numbers -- a grouping of three or five, for example -- and the folks at your local nursery can help you with proper spacing.

Exterior Paint: There is probably nothing that will help or hurt the outside of your home as much as how your paint job looks. A fresh coat of paint in up-to-date colors works wonders, while old, peeling paint in a color scheme that went out of style when Eisenhower was president can really ruin a first impression.

If the paint is in generally good condition and just has a few bad spots, spend a couple of hours with a paint scraper and a can of exterior primer to get things ready for touch up, then have your local paint store match you up a gallon of paint and touch up the primed areas so they blend in. You might also want to consider repainting the eaves or window trim in a fresh new color to liven things up a little.

A New Entrance: Your front door is one spot that every visitor has to pass though, and it can make a lasting impression. A fresh coat of paint or stain can sometimes do the trick, but if your door is badly beat up you should consider replacing it. Check with a local company that specializes in doors (not a home center) and see about having a new door matched to your existing frame. The door company will cut the door, mortise the hinges, and drill for the locks using your old door as a pattern, so you can slip the new door right into place without expensive frame alterations or extensive carpentry.

Whether you're getting a new door or working with your old one, make sure that there are no squeaks or groans when it opens, and that it fits well in the frame without binding. Check the operation of the door handle and deadbolt; check the condition of the weatherstripping; and don't forget the operation of any screen and storm doors.

Cleaning: Last but far from least, clean things up a little. Pick up any trash that's accumulated, including dead leaves, cigarette butts and other small debris. Wash the siding to remove dirt, dust and cobwebs, and wash the windows. Hose off the walkways periodically, and make sure that all exterior lighting is operational. Finally, clean off the front porch -- including porch furniture and knick-knacks -- so that that area is clean and inviting as well.

Fed leaves key rate unchanged

Stephanie & Larry Watson — Wed, 16 Dec 2009 23:52:00 GMT

Information received since the Federal Open Market Committee met in November suggests that economic activity has continued to pick up and that the deterioration in the labor market is abating. The housing sector has shown some signs of improvement over recent months. Household spending appears to be expanding at a moderate rate, though it remains constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixed investment, though at a slower pace, and remain reluctant to add to payrolls; they continue to make progress in bringing inventory stocks into better alignment with sales. Financial market conditions have become more supportive of economic growth. Although economic activity is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability.

With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Committee expects that inflation will remain subdued for some time.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt. In order to promote a smooth transition in markets, the Committee is gradually slowing the pace of these purchases, and it anticipates that these transactions will be executed by the end of the first quarter of 2010. The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets.

In light of ongoing improvements in the functioning of financial markets, the Committee and the Board of Governors anticipate that most of the Federal Reserve’s special liquidity facilities will expire on February 1, 2010, consistent with the Federal Reserve’s announcement of June 25, 2009. These facilities include the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, the Commercial Paper Funding Facility, the Primary Dealer Credit Facility, and the Term Securities Lending Facility. The Federal Reserve will also be working with its central bank counterparties to close its temporary liquidity swap arrangements by February 1. The Federal Reserve expects that amounts provided under the Term Auction Facility will continue to be scaled back in early 2010. The anticipated expiration dates for the Term Asset-Backed Securities Loan Facility remain set at June 30, 2010, for loans backed by new-issue commercial mortgage-backed securities and March 31, 2010, for loans backed by all other types of collateral. The Federal Reserve is prepared to modify these plans if necessary to support financial stability and economic growth.

BEWARE OF FORECLOSURE RESCUE SCAMS - HELP IS FREE!

Stephanie & Larry Watson — Fri, 11 Dec 2009 18:04:00 GMT

BEWARE OF FORECLOSURE RESCUE SCAMS - HELP IS FREE!

Foreclosure rescue and mortgage modification scams are a growing problem. Homeowners must protect themselves so they do not lose money—or their home.

Scammers make promises that they cannot keep, such as guarantees to “save” your home or lower your mortgage, oftentimes for a fee. Scammers may pretend that they have direct contact with your mortgage servicer when they do not.

The Federal government provides free resources to get you the help you need. Homeowners can call the Homeowner’s HOPE™ Hotline at 1-888-995-HOPE (4673) for information about the Making Home Affordable Program and to speak with a HUD-approved housing counselor. Assistance is available in English and Spanish, and other languages by appointment.

Tips to Avoid Scams

Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.
Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
Never make a mortgage payment to anyone other than your mortgage company without their approval.

What to Do if You Have Been the Victim of a Scam

If you believe you have been the victim of a scam, you should file a complaint with the Federal Trade Commission (FTC). Visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357) for assistance in English or Spanish.

More Tips to Avoid Scams

Federal Trade Commission
Watch the Foreclosure Rescue Scams Video on the FTC ’s YouTube Channel.

Office of the Comptroller of the Currency
The U.S. Department of the Treasury’s Office of the Comptroller of the Currency provides tips and materials to help homeowners avoid mortgage modification and foreclosure rescue scams. Find them here .

NeighborWorks America® Loan Modification Scam Campaign
Congress asked NeighborWorks America ® to launch a national public education campaign to empower homeowners to protect themselves against loan modification scams, find trusted help, and report illegal activity to authorities. The U.S. Department of the Treasury partners with NeighborWorks America® in this campaign effort. Learn more about the campaign here.

The Obama Administration has launched a coordinated effort across Federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times.Click here for more information

Holiday Safety in the Home

Stephanie & Larry Watson — Mon, 07 Dec 2009 22:57:00 GMT

We care about yoursafety during the holiday season. The following are a few tips that can keepyou and your family safe while enjoying this festive season.

Electrical Safety

Useonly Underwriters Laboratories (UL) approved lights on your tree.

Avoidoverloading the connections.

Donot leave Christmas tree lights on while unattended.

Checkall light sets prior to use. Do not use damaged light sets or extension cords.

Makesure you have a working smoke detector on every level of your home.

Christmas Tree Safety

Keepyour tree away from heat sources, sparks or flames.

Choosea freshly cut tree. LIVE TREES NEED WATER! Check and refill often.

Cut afew inches off the trunk before placing in water.

Whenyour tree becomes dry, discard it promptly.

Avoidaccidents by using wire or cord to secure your tree to the wall or ceiling (thiswill prevent it from toppling over by small children or pets).

Holiday Candle Safety

DoNot use candles near combustible materials such as curtains, drapes,bedding and or cabinets.

DoNot leave the house with candles burning.

DoNot leave children or pets unattended with a lit candle.

DoNot use candles on a Christmas tree.

Be sure that candles are in stable holders on aflat stable surface and create a 1-foot circle of safety surrounding them.

Pending Home Sales are on the Rise

Stephanie & Larry Watson — Thu, 03 Dec 2009 00:27:00 GMT

Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.

The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.

Yun cautioned that home sales could dip in the months ahead. “The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.

“Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Existing-home sales for November will be reported December 22 and the next Pending Home Sales Index will be on January 5; release times are 10 a.m. EST.