Summer in the Winter - Santa Cruz, Calif.

Yes, we know why we live here and it gets better all the time. 
While the East coast is suffering with their typical abysmal snow, wind, slush, and horizontal rain, the Midwest is terminally digging out, we in The Monterey Bay are enjoying Summer 70's with clear blue sky's.
While sipping champagne and munching on crabcakes at Chaminade today, gazing out at the crystal clear blue bay dotted with sail boats, I realized how blessed I am. 
When YOU decide you want your piece of heaven, call me.  I'm always happy to share the beauty of the bay and my expertise in guiding you to find your treasured spot to call home.

Marlene Henderson, Broker/Realtor
MoeBEST-Henderson Properties and
Property Management

831-429-9091  Anytime

First Time Home Buyer Program W/Housing Authority - Santa Cruz, Calif.

MCC First Time Home Buyer Program now available!


Great news! The Housing Authority of Santa Cruz County just released the MCC (Mortgage Credit Certificate) allocation for 2010. But there are only 7 available!!!

What does this mean for a new home buyer?

A first time home buyer may qualify for this tax credit of 20%. For example, on a $400,000 mortgage the buyer will recieve about $4,000 a year from the government! That's over $300 per month.This program is by far the best first time buyer program, and not only puts money back in the pocket of the home owners, but also helps them qualify for the new mortgage.

Call me for the details on income and sales price limits

Marlene Henderson, Realtor, Owner/Broker - Ca/Nv
MoeBEST-Henderson Properties and
Property Management
Calif Lic. 00599374
831-429-9091 Office
831-419-9091 Air Phone

www.BestSantaCruzProperties.com

Santa Cruz Ca. Real Estate is Strong and here's the proof!

We all have been waiting to hear "Where is the Market Bottom". Do you see signs of recovery? How long before it's over?
The first thing you need to understand is, All markets are 'Local'. When you start paying attention to 'National Statistics' you are 'globalizing' when you need to be 'localizing'
With that said, let's dive in.
What's been feeding the supply and dragging the prices down? What caused the bubble? The pain and the crushing of peoples plans for their retirements?
There are so many factors and this had taken place over several decades of regulation and law changes by our Government, the Greed factor, dishonesty by many in several areas in our business sector to create the perfect storm of collapse.
In the past several years, the steady price decline has been punishing and only those that have had to sell, 70% being the 'distressed seller' (see past posts), the other 30% seeing signs in their portfolios of unease and deciding to make a move before they have too!!
Well, I can't say it is over and from what I hear at conferences and seminars all by noted professionals in my industry, we are about to see a new wave of properties coming on the market by the 'Banks' holding back REO's.
The bright side is that with this pent-up demand by those wanting to make a change, many renting to see which way the wind is blowing, Buyers are striking in a fevered pitch those REO's, short sales and many of the lower priced homes with multiple offers. The market is primarily focused on the $700,000. and below range and one can get a pretty nice property for that. If you check out the following published info you will get a feel for what is happening. The underlying facts to come away with, are that Santa Cruz is very desirable! No matter what the climate in the markets are, our little hidden gem, is still in demand.
To the 'Outsider' it offers World Class access to natural surroundings that enchant, enthral and effect one in a mystical way. The ability to fit in and grow into what you want to be anywhere in the county makes Santa Cruz such an attractive and receptive home.
To the 'Locals' the traditions, secret spots, natural beauty that is just normal to us, activities that are ingrained, the perfect weather and the varience of riches that keep many of us calling it home.

There is an ambiance to Santa Cruz. It has a draw that is world class and scenery that is UNBEATABLE! I have walked, hiked, run, swam, kayaked, biked, etc. many a spot, Santa Cruz is a destination place, that can satisfy so many pleasures. This demand will not go away any more than the sun will stop shinning.


http://www.santacruzsentinel.com/localnews/ci_15156003

The Next Wave of Foreclosed Properties - Here they come!

As mentioned in a previous post, the foreclosures, REO's, short sales or just plain ol' properties in distress will be making a robust appearance in June 2010 as advised by CAR ( Calif. Assoc. Of Real Estate).
With my re-certification or basically updating of information from all the new regulations that have been cascading out to REALTORS with this steady supply of distressed properties I have a current understanding of the latest criteria available to buyers for these properties. This is not my chosen source for buyers but now that Banks own them, there is no alligence an agent feels to this "seller". Some spectacular prices now on many of these properties - typically 50% off prices of 2005!! The qualifying criteria is very stringent but if this is to be your HOME and you are setting down roots, what a great opportunity!
Check out these several links to see some of the gems in Tahoe and Santa Cruz that are truly bargins.

REO Buyer Financial Updates May 2010

Just got my current Residential REO Buyer Specialist Certification, put it to your BEST advantage!!

This is the latest info on REO Foreclosed homes that has come down the pipe through CAR (Calif. Assoc. of Realtors)

With a new supply of foreclosed home coming on the market expected in June according to Credit Suisse, CAR and many national banks are stepping up to the plate and 'training' agents/brokers on what each individual bank wants to see from a BUYER. The guide lines are similar but in this new day of personal responsibility the qualifying perameters are pretty --- well, REAL! And thats a good thing!!
Most of this is what used to be in the good ol' days.
Buyers/users are being required to have a minimum of a 660 credit score, this is down from a 720 recently.
Two years fully documented income and last quarter investment accounts.
If self employed
Two year tax returns
Rental income, corporation or partnership schedules, social security or other retirement income schedules for the past two year.

Qualifying Debt Ratios

The 'front' ratio for a conforming loan is 28%, 33 for a non-conforming loan, and 31% for FHA. There is NO ratio used in VA loans.

The 'Back' ratio or the total monthly debt of the buyer for a conforming loan is 36%, 40 for a non-conforming and FHA is 43%. VA in computed by a different manor and the ratio is 41%.
Mortgage Insurance come into play here also when a buyer puts down less than 20%.

Fixer-upper - REO's plenty of room in loans to rehad these and well, there are many other details and loan packages that have been devised to get these ones moving.

Just give a call, I give you the low down!

The Lending Institutions - The rest of the Story!

Part Five of a Five part series
Lending Institutions
(NON- living, breathing entities)

A quote that should be etched over the entrance of every lending institution and Congress!

During Times of Universal Deceit,
Telling The Truth is a Revolutionary Act - George Orwell.

Things to do before you read:
Here’s a little homework before you get too far along.

1. Research Glass-Steagall Act 1933
2. Repeal of Glass-Steagall Act 1999
3. Look up Resolution Trust Corporation (RTC) 1989
4. www.sfweekly.com/2010-09-01/news/why-obama-s-mortgage-relief-program-failed/


Now that you have a better understanding of the regulations that have been created, played with and lessons learned that are being ignored - we will proceed.

Money, ahhhh money! It can be a source of security, used to purchased ones basic needs, benefit those in need, provide items of satisfaction to the ego, but All to often it spawns GREED!
Think, Madoff, Rothstein, Ponzi anyone??!


BANKS --- These are the places we have traditionally come to for financing large purchases and to a certain extent we still can. BUT the game plan has changed.

We have gone from the mid ‘90’s and mid 2000’s basically with Lending institutions giving money away to anyone with a pulse, by pressure from Fannie Mae/Freddie Mac run by politicians that wanted not only the economy to seem bountiful but to catapult the populous mindset from a “Chicken in every pot” to “A home OWNER under every roof”!!
This ideology, lacking reality, creating an environment of Corruption, set in motion the inevitable “Bubble to BURST“.
Now, currently highly qualified people, applying for loans, having to disclose/explain why a payment three years ago incurred a late fee because you forgot to put a stamp on the envelope - and still being run through the ringer!!

The Banks are holding on to money- typically taxpayer bailout money - tighter and longer for many reasons.

The most prominent is the state of flux the world is in and the BANKERS don‘t want to be caught short. There are so many variables in play these days and I will only go into the Real Estate side.

With the quantity of Bank Owned homes and the unknown of how long they have to be kept on books , while maintaining them, paying taxes, clean-up/repair, etc. etc., when more will be stockpiled and for how long is a major factor in why banks are not letting loose of the cash. The short sales and what the loses will be, weigh on the picture and then certain gov’t regulations on modifications that are just starting to trickle out.
The second shoe should just begin starting to drop shortly too, with the commercial RE market.
Locally, we have been seeing businesses shutting their doors and having to walk away from their leases. The trickle-down effect is devastating on property owners that don’t have deep pockets. So, we go into phase two of the RE tailspin that will additionally be affecting lenders. They need to satisfy share holders/stock portfolios and all that keep the engin of our country running. With the current economic downturn, lack of business start-ups and jobs, that is the basis of the pyramid that is not being attended to.

So while the balance of not letting too many foreclosed homes drench the market while mostly investors soak up this supply, we the tax paying - Bailout supporting public, wait to see what next is in store on the horizon with the BANKS and all that controls the money supply

The Sellers (part two of a 5 part series)

There are the two basic categories -

Non-distressed and DISTRESSED

It makes a BIG difference which one you are in.

If you are clinging on by your fingernails to put food on the table and keep a roof over your head, there are those that can sniff you out and go for the jugular. Usually when that Notice of Default is filed, this is a clear sign.
I have seen how quickly word gets out when someone is down and the sharks begin to circle. By the way - this is a DISTRESSED SELLER.

For you just regular, keeping it together, sellers take heed.
This is the real world and unless you have a ‘Golden Goose’ in the backyard, you should act quickly, price your home competitively and pray! It is a wild ride right now in what determines which property sells and which one sits. Be smart, stage it, and mentally
move out!

There are factors out of your control and with more and more foreclosed homes due to come on the market, the banks making it very hard for the qualified borrower to get that loan, you will have to have a mountain of patience and a Real Estate Broker that is experienced and connected to many excellent resources. Hmmm … who could that be?
I don’t mean to make light of this situation BUT … until the tide turns having a concise plan of action laid out is the all important first step.
To get there, a pointed consultation with an Experience Real Estate Profession will make all the difference!!
(to be continued ….)

How's the Real Estate Market??

The Real Estate World --- Is a multi-headed Serpent
Five part series

The question “How’s the Real Estate Market?”
has no simple way of describing all the factors that contribute to the volatility for this segment of our economy. From Banking, its regulations and lack thereof, politics, lobbyists, developers, local planning dept’s., and on and on. Only addressing the areas that are directly related, I will give it a go though!

We will start with the . . .
Investors/buyers.
This ranges from the single individual with mega cash to invest hence no credit score issues, to the two income couple with three children struggling to get into their first home on a hope and a prayer.

Where you are in this spectrum, determines the ease in accomplishing your goal and which directions you can take.

If you are in the “Cash Flush” Investor category, you can literally track foreclosures, show up on the courthouse steps and plunk down the cash on all kinds of bargains, I have watched, it is - stunning! The great deals are out there and are being snapped up. This is how the bulk of the sales of existing homes is happening now and with the ‘flipping regulation’ just having been removed, it is an investors game right now.

But if you are like the rest of us, the all important credit score dictates the next steps - which I will go into as we proceed. Hence many twists and turns.

The most important thing to learn is ‘Cash is King’. Even though you prove to the banks you are an excellent candidate for a loan, right now the purse strings are very tight even though they have been loaned ‘our money’! We could go around all day about the why’s of this but my sincere opinion is further trouble ahead with what is be designed in Washington and the ‘Banks’ don’t want to be the ones at the table that can’t find a chair when the music stops.

The BEST thing you can do is work with an experienced reputable Real Estate Broker and Mortgage Broker! Ones that have been through many of the historic cycles and are up-to-speed on the “latest” with what entities are offering the BEST package and the latest regulations being issues by the Administration. This is changing at a rapid pace and keeps those not professionals in the business, ‘off balance’
and causes unnecessary complications for professionals -
is this the ‘Change’ we were Hoping for??
(to be continued)

Charmed for Lunch in Capitola

http://www.bloomsburytearoom.com/

The Bloomsbury Tea Room

Well worth the investigation! Great food,service and ambiance!
After a couple attempts to try this little gem we succeeded. Even though a couple of trees were down and we sauntered through our rare rain storms.

The charming decor, the charming wait staff and owner and the food was delicate, delicious and perfect for an afternoon of dallying around.
I have always loved Capitola, lived here, worked here and now relish finds like this that keep it on my constant path.
This is locally owned, staffed and all components are fresh made.
You won't be disappointed - You Will Be Charmed!