Buyers:

 

1st time buyers: you have until 04/30/2010 to enter into a contract to qualify for the Federal Tax Stimulus package. The offer must be accepted and escrow opened, but you get until 06/30/2010 to close the transaction.

 

CURRENT OWNERS: If you own a home, there is a clause for owners who have owned a home for the last 5 years. You would qualify for a tax package of $6,500 as long as the new home is equal or greater size than the current one and you move into the new home.

 

California: has enacted their own homebuyer tax credit (bill AB183 read more about it click here). It gives you $10,000 or 5% of the purchase price (which ever is lower) in a tax credit paid over 3 years in equal payments. The state has dedicated $100 million dollars for first time buyers and $100 million for all new construction. It is on first come first get basis and you must live in the home for 2 years or you will have to pay the credit back. It goes into effect May 1st thru December 1st, or as long as the money is available.

 

Overall: the market in Los Angeles, San Fernando Valley, and Palmdale/Lancaster area are experiencing low inventory levels. Interest rates are still low and very attractive;

                                               Mortgage Rates
                                          30 Year Fixed: 4.99%
                                          15 Year Fixed: 4.34%
                                               1 Year Adj: 4.20%
                                                                                                 (U.S. Weekly Averages)

 

Companies like Bank of America, Chase, Wells Fargo, and many others are moving to make short sales easier to purchase and are looking to dump some of the so-called shadow inventory (Theory that banks have held onto foreclosed property in order to limit flooding the market place with foreclosure. This helps prevent another market crash). This market is being describe as a buyer's market, however, for many it feels like the seller has the upper hand.

 

Strategies: right now 20% down and cash offers are king. Try to make offers with as much down payment as possible. Work with your lender to lower contingency periods to become more attractive. Try paying closing costs out of your own pocket, especially when you have an FHA loan. While these strategize are not a guarantee of an accepted offer, they will make you look a lot better on paper vs. any of the other offers.

 

THE HOUSING ECONOMIC RECOVERY OWNERSHIP PROGRAMS
The HERO/HERO STATE Programs are first-time homebuyer programs funded under the Federal stimulus bill, the Housing and Economic Recovery Act of 2008, which are targeted to benefit low – moderate – middle income persons and to eliminate slum and blighted conditions.  Our HERO Program was designed to launch in March 2009, to offer financial assistance to first-time homebuyers in purchasing a vacant, abandoned and foreclosed home located in U. S. Department of Housing and Urban Development (HUD) designated census tracts. Both the HERO and HERO STATE Programs have the same requirements with exception of the HERO STATE offering assistance in fifteen cities which include:  Alhambra, Artesia, Burbank, Cerritos, Gardena, Glendale, Glendora, Montebello, Monterey Park, Pasadena, Pico Rivera, Rosemead, Torrance, West Covina, and Whittier (incorporated area only).

 

Sellers:

Great time to sell, due to low inventories, low interest rates, stimulus tax plan, and the forthcoming summer have triggered a frenzy in the market place. Take advantage of the uptick in the market.

 

Mortgage analyst are predicting 5.75% - 6% interest rates by years end. The increase in rates may cause the market to stall and lower prices a bit. While there are many words buzzing about the market place (double dipp recession, high interest rate, unemployment, and others), summer has always been a strong time to sell homes.

 

Be wise, develop a sales plan and plan to work your plan. This market is not like the ones before, people give value where value should be given. Remove and reduce clutter, let the brightness into the home, use paint with appealing earth tones, keep up with your landscapping, clear the gutters, dust the home, and for more tips call me to help you plan in advance.  

 

Loan Modifications:

Many people are still being scammed by conartists promising to lower pricipal amounts and interest rates.

 

You need to know; State of California passed a law preventing companies collecting monies upfront for fees, paperwork, filings, or any other charge for loan modifications. Most banks no longer recognize loan modification companies. You can use attorneys, but most banks are setting up special programs to handle loan modifications on their own.

 

Here are 2 free locations to do you own loan modification if your bank is not helping; www.naca.com (non-profit group, you must be at least 3 months behind on your mortgage) and www.makinghomeaffordable.gov (Obama's federal program to stop foreclosure).

 

If you are not being helped, please feel free to contact me at anytime. There are other ways to stop the sale of the home.

 

 

In closing:

Do not be affraid of this real estate market. There are a lot of opportunities out there. The best word to use in this market is "PATIENCE". Please do your homework and make sure your agent is market educated and communicates well with you.

 

 

I want to thank Roger Tafolla, Veronica Duenas, Eric Danby, Caroline Salazar, and Maritza Sanchez for your referrals. Thank you to those who have sent referrals my way during the year. It truly is an honor to be your trusted Realtor.