Luba Muzichenko

San Francisco Realtor

Archives for November 2008

Can't Afford Your Mortgage? What to Do To Avoid Foreclosure

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San Francisco has weathered the foreclosure storm much better than most places in the country. 

But, I’d be flat out crazy if I believed that there aren’t at least some of you out there that got in above your head.  No down payment loans, negative amortization loans and loans whose rates reset within a short period of time have put many homeowners in uncomfortable situations. In some cases, those situations are just plain painful. 

Because there are those of you that need help, I thought I’d pass on some information provided by the California Association of Realtors.

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) has created consumer information sheets detailing the various mortgage modification programs available through the larger lenders and government entities, and also has created an easy-to-use reference chart about available programs.

· The consumer sheets contain information such as eligibility requirements; who to contact to apply; costs associated with the program; and other vital data. In general, the loan modification programs on the chart and consumer information sheets are intended for primary residences only.

· Mortgage loan modifications typically are handled on a case-by-case basis. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available: loan number; income information and documentation; most recent mortgage statement; bank statements; and a letter demonstrating financial hardship.

To download the mortgage modification sheets, please visit:
http://www.car.org/legal/mortgage-workout-programs/?view=Standard

What if you don’t qualify?

The majority of the mortgage modification programs from the larger lenders only are available to homeowners who either already are in default or are at risk of defaulting on their primary residences. However, some homeowners, in particular those who may default on a vacation home or an investment property, have some options available.

MAKING SENSE OF THE STORY FOR CONSUMERS

· Homeowners who are in default or at-risk of defaulting should contact a reputable credit counseling agency to discuss possible options other than foreclosure. When calling a credit counseling agency, the homeowner should have their loan number, most recent mortgage statement, bank statements and a letter demonstrating financial hardship. To find a credit counselor, visit the U.S. Dept. of Housing and Urban Development’s (HUD) Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA or the non-profit organization National Foundation for Credit Counseling at http://www.nfcc.org/.

· Homeowners should contact their loan servicer as soon as possible to try to work out potential solutions. According to the Federal Housing Finance Agency (FHFA), some borrowers who do not meet the requirements for an existing mortgage modification program may still be considered for a loan adjustment based on personal circumstances.

· If a mortgage modification is not possible, homeowners may want to consider a short sale — sell the home for less than the amount of the mortgage. Although a short sale enables a homeowner to avoid foreclosure and often causes less damage to the homeowner’s credit score than a foreclosure, the lender must agree to accept the loss and in some cases the homeowner may have to pay taxes on the difference. Also, many lenders are overwhelmed by the large number of short sales being submitted by homeowners, so it could take longer than usual to receive a short-sale acceptance from the lender.

· If a homeowner cannot qualify for a mortgage modification or a short sale, some lenders will consider a deed in lieu of foreclosure, where the homeowner transfers the title to the lender in exchange for debt forgiveness. Properties that have additional debt, such as home equity lines of credit or additional mortgages, may not qualify for a deed in lieu of foreclosure. Homeowners who have additional debt tied to the property must share this information with their lender for consideration when applying for a short sale.

To read the full story, please click here:
http://online.wsj.com/article/SB122643638528218301.html

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October 2008 San Francisco Home Sales Data is Here!

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The latest market report is here. (You can also view previous market updates by selecting the archives on the upper right portion of the screen).

As you know, things in the market have been a little topsy turvy.  Some areas of the City have depreciated but other areas like Noe Valley have actually seen some appreciation.  Some homes are sitting on the market and waiting for a new owner to come along and call them home while others are receiving multiple offers and flying off the MLS faster than you can update your loan approval.  Some loans are taking 45 or more days to close (if they close at all), while others are closing in just 15 days.  Some people are taking advantage of the reduced competition and buying homes at reasonable prices.  Others are just waiting on the sidelines and hoping that the market falls further before they step in and claim their home.  In a nutshell, there is no one story to tell.  Whether the market is good or bad really depends on YOUR personal real estate goals and whether the market is good or bad for YOU! 
 
As far as data goes, these numbers should give you something to chew on:
 
Sales of single-family, re-sale homes dropped 7.9% last month compared to last October. Year-to-date, home sales are down 5.4%.
Loft/condo sales rose 23.4% from September, but were off 22% compared to October 2007. Year-to-date, loft/condo sales are off 22.4%.
The median price for single-family, re-sale homes fell 2.8% from September, and it was down 14.1% year-over-year. The average price was off 10.2%, down 29.8% compared to last October.
The median price for loft/condos in San Francisco gained 4.1% from September, but was down 3.4% year-over-year. The average price for condos gained 0.6% from September.  The average price was down 8% year-over-year.
 
Click here for the full report.  And of course, email me if you want to discuss whether this market is good or bad for YOU!

Read on for full details.

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The State of SF Real Estate

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You’ve been reading the headlines.  Banks are failing.  Lenders aren’t lending.  Stocks are spiraling downward, then they’re recovering.   The Bailout is being worked out.  But wait.  Unemployment’s gone up.  Mortgage rates are fairly stable.  And gas, hell, gas seems to be cheaper than bottled water right now.  And hell, I’m seeing more commercials for “lay away” than I have in the last 20 years. 
 
In a nutshell, the economy is frickin CRAZY! 
 
But things in San Francisco seem to be mostly weathering the storm.  I mean, things have changed.  Some listings that would have sold in days are taking a few months to sell.  However, others are still moving and moving fast.  I just helped clients put in an offer on one home where the seller received 5 offers.  We were fourth highest.  I helped a different set of clients write an offer on a different property, and while we came in the highest in price out of a handful of other offers, our offer was beaten by one that was 100% non-contingent. 
 
So are we in a buyer’s market?  Not exactly.  Are we in a seller’s market?  Not exactly either.
 
The key is that properties that are priced well (ie. realistic by today’s standards, not last year’s) are selling and selling fast.  But – sellers need to price things correctly right out of the gate.  Price it wrong, and you’ll get stuck with months of carrying costs, and months of frustration.
 
And buyers, not every property out there is having a fire sale.  But better believe there are some SWEET homes out there that are selling for less than they would have in months and years prior.  If you’re looking for a home and you have realistic expectations, you’ll find something in your budget that might just surprise you.
 
If you want the latest details – check them out here.   If you want to see what your real estate goals and budget look like in comparison to today’s market realities, email me.  I’m always happy to talk “real estate.”
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Say Good-bye to $729,500

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Back in the beginning of the year, the conforming loan limit was temporarily increased from $417,000 to $729,500. 
 
We all knew that the fun just couldn’t last, and in September, the powers that be announced that the conforming limit would be permanently set to $625,500.  Now, it’s a BIG improvement from the previous permanent conforming loan amount of $417,000, but it’s over $100K less than the current level.
 
Now – this decrease from current levels was supposed to take place in January, but lenders are ready to throw in  the towel NOW!
 
If you’re looking at a loan between $625,500 and $729,500, get off your duff and buy something. 
 
All of these loans need to fund and close the before December 1st.  Lenders are starting to cut off this program since the temporary loan limit increase that was instituted as part of the economic stimulus package earlier this year ends on December 31st.  Lenders are wanting to get these off their portfolio before January 1st.
 
To make a long story short, if you’re in this “in between” category for loans, your purchase power will decrease by December 1st.  Now – I kid when I say “go out and buy something now,” but if there’s a property you’ve got your eye on, you might just want to strike while the iron’s hot.
 
And if you have questions about all of this, holler.  You know I love to talk real estate.
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SF Snapshots: San Francisco Living

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Prop 8 Protests: San Francisco, CA, November 15, 2008 by Pargon.

Prop 8 Protests: San Francisco, CA, November 15, 2008, originally uploaded on by Pargon

If you’re a regular reader, I’ve been gone for a little while.  Even though I love writing this blog, I needed a little break to find my mojo again.  And so during the time away from blogging I’ve been working extra hard.  Accepting offers, rejecting offers, writing offers (getting them both rejected and accepted) and more.  Of course, along with working extra hard, I’ve also been playing extra hard and found myself taking a few small vacations as well as a bigger and longer jaunt across the pond to Germany and Israel.  I went kayaking.  I went scuba diving in the Red Sea.  I rode a camel in the Negev and Sinai Deserts.  I shopped.  I relaxed.  I explored.  And most of all, I enjoyed coming hom to the City that I call “home!”

And now that I’m done playing, I’ll be focusing again on providing you loyal readers (and those of you that have just happened to stop by) with interesting and informative information.  And occasionally, a little fun as well. 

Don’t forget to check back again soon for more posts about San Francisco Real Estate.  And don’t forget to check back next week for another awesome San Francisco photo.

And if you’d like to throw your photos into the pool of candidates for my SF Photo Friday collection, tag your SF Photos from Flickr with LubaSF. 

Happy Friday!  See you soon!

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San Francisco Real Estate Sales Data – September 2008

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As I do every month, I ran the latest San Francisco real estate sales figures from the month of September for you.   (And yes, because of the blogging break – these stats are coming to you a little late, but better late than never, right?)

This month, volume is down from August.  Median price is also down, but days on market and list price vs. sale price – didn’t change very much in either direction. 

Most people will agree – the market has changed.  And frankly, no one know when it’ll really begin to change for the better, nor does anyone know if things will get much worse before they get better. 
 
The good news though, is that while many places in the country have lost up to 50% of the property value from when the housing bubble first popped, San Francisco still seems to be weathering the storm quite nicely.  Some places are taking longer to sell, lenders are adding more restrictions to fund loans, and more buyers have taken up the hobby of fence sitting.  But it seems that there are still plenty of active buyers out there and they’re ready, willing and able to purchase their SF home.  In fact, for those that are qualified, this is the best time in YEARS to buy a home. 

So here’s this month’s summary of home sales pulled directly from the MLS. Remember, these are all closed sales and not pending sales.

If you have any questions about these statistics, or the market in general, feel free to give me a holler! I’m always happy to talk “real estate!” ;-) <!– –>

Here’s a quick snapshot of the market from September 1, 2008 through September 30, 2008:

Single Family Homes

  • 168 Homes Sold
  • Median Sale Price was $782,250
  • Minimum Sale Price was 300,000
  • Maximum Sale Price was $6,150,000
  • Median Selling Price was 101% of asking price
  • Median Days on Market was 33
  • Median Selling Price for homes that sold within 30 days was 103% of asking price

Condominiums, Lofts & Co-ops

  • 122 Homes Sold
  • Median Sale Price was $738,750
  • Minimum Sale Price was $175,574
  • Maximum Sale Price was $4,795,000
  • Median Selling Price was 99% of asking price
  • Median Days on Market was 49
  • Median Selling Price for homes that sold within 30 days was 99.5% of asking price

TIC’s

  • 26 Homes Sold
  • Median Sale Price was $460,500
  • Minimum Sale Price was $188,000
  • Maximum Sale Price was $1,368,000
  • Median Selling Price was 103% of asking price
  • Median Days on Market was 68
  • Median Selling Price for homes that sold within 30 days was 103% of asking price

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