The Real Folsom Blog

It's Ridiculous and Getting Worse

One of the things I love about guest blogger, Barbara Van Duyn, is she always tells it like it is. See for yourself below. Barbara is a certified mortgage planner with First Priority Financial, If you have any mortgage questions, you can reach Barbara through her Web site, www.BarbaraVanDuyn.com.

In order to provide relevant and trustworthy advice to those who ask for it, I set aside time each day to study the latest bulletin from financial institutions outlining a new credit requirement, notice of another loan program ending, or the slow drip of details coming from the government’s latest rescue plan. I’ve come to learn it doesn’t matter how long someone has been in my profession because the experience from years past no longer apply to today’s rules. Even with time devoted to staying current, the endless stream of changes involved in financing real estate has reach the point of ridiculous!

The biggest offender is the government whose hands are in everything we touch (because it’s for our own good). Here’s an example: Effective January 1, 2009, we began the implementation of lower conforming loan limits in high-cost areas throughout the country. Then a month later with the signing of the American Recovery and Reinvestment Act, we heard those limits will revert back to 2008’s higher levels. Mortgage banks can’t move that quickly so we are still waiting for official word when these changes will show up on our rate sheets. We had another example of back and forth last summer when FHA announced risk-based pricing rules for about six weeks and then did away with them when another stimulus plan became law.

The bottom line … no one knows it all but some of us are trying our best to keep you informed. Until next time, take care. Barbara

Recent Folsom Home Sales Feb 8-14 '09

Home sales slowed the second week of February with just seven sales recorded by MetroList, our local multiple listing service.  The properties were listed and sold by various multiple listing service brokers. If you'd like to know about a recent sale in your neighborhood, just drop me a line at annerhea@kw.comand I'll look it up for you.

* 72 Dean Way, 2 bed/1 bath, 880 sq ft, sold 2/13/09 for $112,000 (94 percent of list price) on the day it was listed for $127 per sq ft.
* 1151 Harter Way, 3 bed/2 bath, 1457 sq ft, sold 2/9/09 for $325,000 (97 percent of list) after 79 days on the market for $223 per sq ft.
* 121 Taunton Way, 3-4 bed/3 bath, 2125 sq ft, sold 2/13/09 for $450,000 (97 percent of list) after 110 cumulative days on the market for $212 per sq ft.
* 103 Heart Butte Court, 5 bed/3 bath, 3198 sq ft, sold 2/13/09 for $450,000 (100 percent of list) after 90 DOM for $141 per sq ft.
* 112 Beneto Court, 4 bed/3 bath, 2396 sq ft, sold 2/11/09 for $455,000 (95 percent of list) after 54 DOM for $190 per sq ft.
* 1308 Humbug Creek Drive, 4-5 bed/3 bath, 2925 sq ft, sold 2/10/09  for $480,000 (96 percent of list) after 151 cumulative DOM for $164 per sq ft.
* 676 Misty Ridge Circle, 3-4 bed/3.5 bath, 3433 sq ft, sold 2/9/09 for $749,000 (100 percent of list) after 11 DOM for $218 per sq ft.

Green Living: Talk About Cutting Out the Middleman

I hear the U.S. Post Office is unveiling a new recycling program that will make it possible for its customers to recycle used envelopes or mail they don't want without leaving the post office. Here is how it will work: you pick up your mail from your post office mail box, open your mail, pull out the mail you want to keep, and put the rest in a recycling bin located in the post office lobby. The bins will be locked with just a magazine sized opening to allow you to insert trash for recycling but secure so no one can get to the mail you threw out. Now that's a good idea!

Folsom Considering Changes to Water Conservation Ordinance

Just doesn't seem right. We're in the midst of what seems like the wettest February ever and the city of Folsom is considering making some changes to its Water Conservation ordinance to give it some teeth to pursue non-compliers. That shows the sad reality of where we are water-wise. Even with all this rain, we are in the middle of a drought. So Folsom is actively looking at how to ensure residents comply with water use reduction goals. If you remember, we have been in a Stage 2 water alert since last August (that calls for a voluntary 20 percent reduction in water use) and last month our city manager warned we might soon be in a Stage 3 alert (a possibility still hanging over our heads). Here is what the penalties will look like: 1st violation--you receive a personal or written notification; 2nd violation (within 3 months of 1st violation)--you receive a written notification and a notice of correct; 3rd violation (within six months of the 1st)--penalties up to $100 and some other "corrective" measures. Under the revised ordinance, we would have the following five stages:

• Stage 1--Basic stage
• Stage 2 water alert--Mandatory water use reduction up to 12%
• Stage 3 water warning--Mandatory water use reduction up to 20%
• Stage 4 water crisis--Mandatory water use reduction up to 35%
• Stage 5 water emergency--Mandatory water use reduction up to 50%

Not a pretty picture of where we are. But it's good the city is being proactive.

Another Plan To Rescue the Housing Market

Here we go again... another housing market rescue plan. Our guest blogger, Barbara Van Duyn, a certified mortgage planner with First Priority Financial, puts this latest plan in perspective. If you have any mortgage questions, you can reach Barbara through her Web site, www.BarbaraVanDuyn.com.

So who owns your mortgage? Fannie Mae, Freddie Mac, your local bank, or some unknown investment portfolio? The company you send your mortgage payments to is likely a servicer and not the owner of the mortgage. The reason for the question is because our government announced yet another housing rescue plan yesterday. This time it’s $75 billion dollars and focuses on mortgages owned by Fannie and Freddie or other banks who took TARP (Trouble Assets Relief Program) money. That’s estimated to be 9 million households. We watched Washington roll out several housing rescue plans in the past six months and were told they would help struggling homeowners. Remember Hope For Homeowners? It bombed. None have proven to stop this slippery slope of foreclosures.

The problem with all of these plans is the government cannot force any investor to modify a homeowner’s mortgage. The language associated with these plans is “urge” and “encourage” investors to stop foreclosing and modify. And the latest housing recovery plan offers financial incentives to investors for doing so. Think about this… if the stabilization and recovery of the housing market is KEY to our economic recovery, why have we spent billions saving Walls Street firms, billions to others, and now another $787 billion on mostly non housing stimulus. New home buyers entering the market are getting great deals but it’s not enough to turn the housing market around by itself. A lot is riding on the latest round of taxpayer money and all we can do is wait and see if it works.

Until next time, take care. Barbara

Recent Folsom Home Sales Feb 1-7 '09

Folsom home sales continued at a good pace the first week of February, as you will see below. This information comes from MetroList, our local multiple listing service.  The properties were listed and sold by various multiple listing service brokers. If you'd like to know about a recent sale in your neighborhood, just drop me a line at annerhea@kw.comand I'll look it up for you.

* 364 Caples Drive, 2 bed/2 bath, 1012 sq ft, sold 2/05/09 for $240,000 (96 percent of list price) after 187 days on market for $237 per sq ft.
* 304 Picasso Way, 2-3 bed/2.5 bath, 1501 sq ft, sold 2/02/09 for $270,000 (96 percent of list) after 69 DOM for $180 per sq ft.
* 1515 Guzzetti Way, 3 bed/2.5 bath, 1678 sq ft, sold 2/06/09 for $295,000 (100 percent of list) after 445 cumulative DOM for $178 per sq ft.
* 2206 Shady Creek Road, 3 bed/2 bath, 1344 sq ft, sold 2/06/09 for $300,000 (100 percent of list) after 64 cumulative DOM for $223 per sq ft.
* 182 Winding Canyon Lane, 2 bed/2.5 bath, 2153 sq ft, sold 2/02/09 for $300,000 (100.03 percent of list) after 88 DOM for $139 per sq ft.
* 106 Cobble Ridge Drive, 3 bed/2.5 bath, 1938 sq ft, sold 2/04/09 for $322,000 (111 percent of list) after 31 DOM for $166 per sq ft.
* 1340 Walden Drive, 4 bed/3 bath, 1834 sq ft, sold 2/06/09 for $359,000 (99 percent of list) after 14 DOM for $196 per sq ft.
* 101 Tidepool Court, 3-4 bed/3 bath, 2125 sq ft, sold 2/05/09 for $378,000 (97 percent of list) after 57 DOM for $178 per sq ft.
* 431 S. Lexington Drive, 3 bed/2 bath, 1793 sq ft, sold 2/05/09 for $384,000 (102 percent of list) after 46 DOM for $214 per sq ft.
* 221 Barnhill Drive, 4 bed/2.5 bath, 1930 sq ft, sold 2/04/09 for $399,000 (118 percent of list) after 110 DOM for $207 per sq ft.
* 716 Hildebrand Circle, 4 bed/2 bath, 2024 sq ft, sold 2/02/09 for $406,000 (104 percent of list) after 11 DOM for $201 per sq ft.
* 132 Honey Cook Circle, 4-5 bed/3 bath, 2449 sq ft, sold 2/02/09 for $415,000 (94 percent of list) after 36 DOM for $169 per sq ft.
* 1210 Darling Way, 3 bed/2.5 bath, 2033 sq ft, sold 2/03/09 for $425,000 (97 percent of list) after 16 DOM for $209 per sq ft.
* 984 Glennfinnan Way, 4 bed/3 bath, 2563 sq ft, sold 2/05/09 for $440,000 (97 percent of list) after 267 cumulative DOM for $172 per sq ft.
* 109 Aldworth Way, 5 bed/2.5 bath, 2585 sq ft, sold 2/06/09 for $440,000 (94 percent of list) after 146 DOM for $170 per sq ft.
* 345 Prewett Drive, 4-5 bed/3 bath, 2918 sq ft, sold 2/03/09 for $465,000 (97 percent of list) after 92 DOM for $159 per sq ft.
* 1933 Tyndrum Lane, 5-6 bed/3 bath, 3112 sq ft, sold 2/04/09 for $493,000 (99 percent of list) after 88 DOM for $158 per sq ft.
* 2073 Owl Meadow Street, 5 bed/3.5 bath, 3160 sq ft, sold 2/05/09 for $543,563 (92 percent of list) after 53 DOM for $172 per sq ft.
* 607 Mormon Street, 3-5 bed/3.5 bath, 1921 sq ft, sold 2/06/09 for $599,0000 (96 percent of list) after 123 DOM for $312 per sq ft.
* 1617 Bowen Drive, 5 bed/4.5 bath, 3927 sq ft, sold 2/06/09 for $610,000 (100 percent of list) after 42 DOM for $155 per sq ft.

New Ecover Line Makes It Easier To Go Green When Washing Your Car

More than 25 years ago, the Belgian-based company Ecover began marketing phosphate-free washing powder. That was before most people realized that phosphates were an environmental hazard. Today, they have an extensive line of indoor cleaning products and a new plant- and mineral-based car wash and wax. The car wash product is plant-based, completely biodegradable, with a minimum impact on aquatic plant life, according to the Ecover Web site. And, the packaging is 100 percent recyclable. Now that's going green! You can find their products at Whole Foods or buy them online through the Ecover Web site.

Doing CMAs Are a Challenge in Current Real Estate Market

At the height of the market, it wasn't too difficult to do a Comparative Market Analysis with prices going up steadily and lots of sales for comparison. You could, with not too much work, figure out the current market value of a home. Getting a good CMA is a key element in selling or purchasing a home. If you're selling you don't want to price too high and not get offers or too low and wind up giving your home away. And for buyers, you don't want to offer a penny more than you have to. I'm finding, though, that it is getting more and more challenging to do a CMA. To do a CMA, you start by looking at three key elements: recent sales, pending sales, and homes currently on the market. The problem with any of those categories is that the numbers are all over the place. I recently did a CMA for a home in a community that has been hard hit with foreclosures and short sales. Looking closely at the listings to see the condition of the homes and the amenities, I found a range of about $70,000 dollars between the lowest and highest recent sales of comparable homes. When you make a decision of where to price your home, keep in mind factors like how quickly you want/need to sell and price accordingly. And, if you decide to price your house at the higher range, be ready to do price reductions sooner than later. Test the market if you want but don't stay in the higher range too long.

Buying a Bank Owned Home From Fannie Mae

Some good news today from our guest blogger, Barbara Van Duyn, a certified mortgage planner with First Priority Financial, who tells us about a new loan program from Fannie Mae. If you have any mortgage questions, you can reach Barbara through her Web site, www.BarbaraVanDuyn.com.

At a time when buyer-assisted loan programs are few, Fannie Mae has announced a new one that has some cool features. Like a bank, Fannie Mae owns mortgages and when homeowners default, they take the homes back as a result of foreclosure. Fannie Mae is offering these homes for sale with special financing that includes:

• 3 percent down for owner occupied
• 10 percent down for investors
• No appraisal required
• No mortgage insurance needed
• Easier credit guidelines

For more information, go to Fannie Mae’s website: www.HomePath.com and check out the homes currently available in your area. Your local bank is not offering this special financing so the best place to learn more about it is from a mortgage broker who represents several lenders and will likely have one who is approved. Until next time, take care. Barbara

Recent Folsom Home Sales Jan. 22-31 '09

Business has definitely picked up for the period of Jan. 22-31, judging by the number of recorded home sales according to our local multiple listing service.  The properties were listed and sold by various multiple listing service brokers. If you'd like to know about a recent sale in your neighborhood, just drop me a line at annerhea@kw.comand I'll look it up for you.

* 1601 Esplanade Circle #1601, 2 bed/2.5 bath, 1434 sq ft, sold 1/23/09 for $220,000 (96.11 percent of list price) after 56 days on the market for $153.42 per sq ft.
* 183 Price Way, 3 bed/1 bath, 1039 sq ft, sold 1/28/09 for $230,000 (83.64 percent of list) after 178 DOM for $221.37 per sq ft.
* 331 Marsalla Drive, 2 bed/2 bath, 1012 sq ft, sold 1/27/09 for $239,000 (95.64 percent of list) after 280 cumulative days on the market for $236.17 per sq ft.
* 2107 Esplanade Circle #2107, 2 bed/2.5 bath, 1355 sq ft, sold 1/27/09 for $247,000 (102.96 percent of list) after 75 DOM for $182.29.
* 651 Hillswick Circle, 3 bed/2 bath, 1458 sq ft, sold 1/29/09 for $275,000 (83.33 percent of list) after 38 DOM for $188.61 per sq ft.
* 672 Humbert Street, 4 bed/3 bath, 1998 sq ft, sold 1/28/09 for $287,900 (100 percent of list) after 9 DOM for $144.09 per sq ft.
* 2319 Clapton Way, 3 bed/2 bath, 1313 sq ft, sold 1/22/09 for $299,900 (103.45 percent of list) after 16 DOM for $228.41 per sq ft.
* 520 Given Street, 4 bed/3 bath, 2105 sq ft, sold 1/30/09 for $315,000 (96.92 percent of list) after 4 DOM for $149.64 per sq ft.
* 745 Ward Way, 4 bed/3 bath, 1998 sq ft, sold 1/30/09 for $319,000 (100 percent of list) after 101 DOM for $159.66 per sq ft.
* 124 Cobble Ridge Drive, 3 bed/2.5 bath, 1677 sq ft, sold 1/22/09 for $329,000 (101.86 percent of list) after 10 DOM for $196.18 per sq ft.
* 229 Buffet Court, 4 bed/2 bath, 1595 sq ft, sold 1/30/09 for $330,000 (100.03 percent of list) after 14 DOM for $206.90 per sq ft.
* 108 Van Elgort Court, 3 bed/2.5 bath, 2630 sq ft, sold 1/28/09 for $377,750 (88.88 percent of list) after 79 DOM for $143.63 per sq ft.
* 152 Big Valley Road, 4 bed/2.5 bath, 2173 sq ft, sold 1/23/09 for $395,000 (99.27 percent of list) after 31 DOM for $181.78 per sq ft.
* 1064 Orbison Court, 3 bed/2 bath, 1876 sq ft, sold 1/30/09 for $411,000 (99.04 percent of list) after 4 DOM for $219.08 per sq ft.
* 2148 Kavine Way, 3 bed/2 bath, 1919 sq ft, sold 1/26/09 for $415,000 (98.82 percent of list) after 156 DOM for $216.26 per sq ft.
* 100 Dixon Court, 4 bed/3 bath, 2902 sq ft, sold 1/28/09 for $429,000 (99.79 percent of list) after 21 DOM for $147.83 per sq ft.
* 1059 Ledgestone Drive, 5 bed/3 bath, 3234 sq ft, sold 1/29/09 for $479,000 (100 percent of list) after 150 DOM for $148.11 per sq ft.
* 1676 Gallinger Court, 4 bed/3 bath, 2780 sq ft, sold 1/28/09 for $485,000 (97.02 percent of list) after 72 DOM for $174.46 per sq ft.