General Views

Finally the hysteria is mainly behind us, mainly, but not altogether. Our new President has the reins and is taking charge. Already the order to close Guantanamo has been signed, but no idea what to do with the people there who will kill us given the opportunity. Assurances of absolutely no lobbyist positions in this administration and already a Raytheon boy is headed for number two position at the Pentagon, and the Treasury will inherit a tax cheat as Secretary to oversee, among other things, the IRS he cheated. Barney Frank has funneled some bail-out money to a bank in his district, possibly to help pay for the Porsche they use for a company car. B of A has found it necessary to request more bail-out funds to pay for the mistake of acquiring Merrill, and has fired Thain, the former head of Merrill, who among other transgressions, spent over a million dollars rehabbing his office. Patterson has finally ended the circus of selecting a replacement for Clinton for the New York Senate seat. Shouldn't have been that tough to replace her. Her only claim to fame was an inability to find law office records when requested, an inability to come up with a workable health care program, no public office experience other than apologizing for her adulterous husband. Now as Secretary of State she can monitor the contributions of the Arab money flowing into her husband's "library fund". Citigroup which had a capitalization of 119 Billion,has received two infusions of our money, one for 20 billion, another for 25 billion, and now has a capitalization of just 19 billion. As an investment strategy this government bail-out doesn't seem to be working out. Now of course the next 825 billion will be easier to dispose of now that the pattern is clear. And we haven't even talked about Illinois. "Whom the Gods would destroy, they first make mad".
My email and fax machine are busy daily promising great wealth if I will only refer people for loan modification and short sale negotiations. The one tonight offers $15,987.00 per month with almost NO WORK Almost too good to be true. One of our local Brokers is soliciting other agents for the same thing, and Craigs List, which we use heavily, is always full of ads directed both to agents and to consumers. An unbelievable amount of slime is concealed under the rocks, anxious for any opportunity to prey on the helpless and the gullible. We keep saying, and will keep saying, if you need help in negotiating with your lender, consult a local attorney. If you don't know one, call us. We don't accept money for a referral, nor will a legitimate office offer one.
Month to date the Chico area closed sales are 1/3 Foreclosed properties or short sales. Not a good thing, and heading for worse most likely. If you're interested in buying and want to look at foreclosed properties, please call us. We'll get you a list of the available properties in the price range and area of interest, show them to you, negotiate for you,(remember it's a lender on the other side of this transaction), and when the price is right, we'll get you a loan. This is what our license and experience qualifies us for. We'd love to help you, and you can go to the bank with the knowledge, if we can't help you we surely won't hurt you.
As usual,
Thanks for visiting

A Look At Our Local Market

As real estate agents a large part of our responsibility is guiding clients with a realistic evaluation of property value, and the appropriate process is identical to that used by appraisers, looking at the sales of comparable properties. (For the record, appraisers have a more rigid framework since their estimate can only be based on history and is entirely designed to protect the investing lender. Real estate agents have a modest amount of latitude in that we can inject some forward looking subjective elements). Be that as it may, the job of evaluating always assumes the sales are between informed buyers and informed sellers, and in this market, that is clearly not the case. Of the only 7 homes closed since Jan 1 in the greater Chico market, one was an REO (foreclosure sale), one was a "short sale" (negotiated mortgage with seller's lender). In Glenn County of 8 sales since Jan 1, one was a short sale, four were REO's. December 2008, Chico 58 sales, 5 short sales, 16 REO's. Glenn County, 24 sales, no short sales, but 19 REO's. Of the homes currently listed in Chico, 370, 79 are either short sales or REO's, 21% Glenn listings, 170, 75 either short sale or REO's, 44%. It's fair to say that many of these sales reflect distress circumstances and have not been representative negotiations between informed parties. Worse, in the case of the foreclosed properties it may well be the case that the lender collected a substantial payment from mortgage insurance and can afford to drop the price and still mitigate their loss. The sales stand as comparables even though the lender may have priced for their reasons and not been driven to hold for the top dollar. The government can not leave anything alone, and with their promises of help with modification schemes, bail-out money to banks, the promise of help for borrowers, and the economic fact of a very weak economy, now and for a considerable time into the future, the real estate market is chaotic. What all this boils down to is that we are not very confident about valuations, and it takes a lot more work than usual to come up with what we hope are realistic numbers. Some things are true. There is money available at some of the best rates in decades, there are some really nice homes for sale. If a person is looking for a home to buy to live in for some period of time, this is a pretty good time to be looking. If a person is looking for a shorter term investment opportunity, residential real estate in not the place for it in California. Home values have declined considerably, but unless you must sell for some reason it doesn't matter much. The loss is nothing compared to what has happened to your GM or Ford stock, should you have some in your portfolio.
Our mission is to be as helpful as possible to people in matters of real estate and real estate finance, reducing costs and eliminating anxiety. Saving money is just smart business. If we can't help you we'll try to get you pointed in the right direction.
As usual,
Thanks for visiting

Greed And Arrogance

If it were not so terribly expensive, and potentially dangerous, watching the antics of our elected and appointed officials would be amusing verging on hilarious. The Illinois governor, about to be under indictment and hanging by a thread manages to pull on the string of the Senate leader Harry Reid whose posturing is childish and whose position is insupportable. Feinstein, aghast at the Obama choice for head of the CIA, within three days discovers he is the answer to every problem known to man with management skills of exceptional quality. Pelosi and Reid, with a little help from Dodd, Frank and some others are going to deny any Republican amendment suggestions to the pending trillion plus package for resuscitation of our economy. This is a heart warming view of cooperative spirit in the interests of the people. And then we have Mr. Madoff whose self interest defies description, performing in the private sector. We have banks, recipients of enormous largess from public funds, unable or unwilling to reveal what the money is being used for, or even where it went. We have the government encouraging the revision of mortgage contracts, a distinctly illegal action by any other than bankruptcy courts. It's easy to believe that the world is now experiencing a new level of ineptitude and greed, but Hark!, as they say in the dime novels. Remember Richard Daley the first? Boss Tweed and Tammany Hall? Teapot Dome and oil? The original Ponzi? Anyone for the Holland Tulip extravaganza?
The only thing new is improved communication and the increasing ingenuity of the thieves and power seekers. Human nature is unchanged. The good guys still far outnumber the bad guys, but the bad guys have more effectively grasped the reins of power. It's probably not too late to change that, but indifference to, and tolerance for, selfish behaviour must be changed.
At a personal level we're witnessing a large number of opportunists sliding out from under the rocks attempting to take advantage of those suffering in these economic times. Offers to help in loan modification, for a fee of course, and offering real estate and mortgage people a split of these fees for referrals. There are offers of help in arranging short sales, or advice on the advisability of foreclosure as an option. I have some advice, and it's free. If you feel you need to talk to someone about either of these matters, see your CPA and/or your attorney. If you don't have one, get a referral to one. Real estate agents or mortgage agents are not qualified nor authorized to offer short sale or foreclosure advice. We are qualified to provide a property valuation, to sell your home, to finance or refinance your home, or to help you buy a home. Short sales and foreclosures have both legal and financial consequences. They require professional guidance. In all things be sure the person you're talking to has your best interests at heart. Speaking of best interests and hearts. Remember the Redding surgeons performing unecessary by-pass surgery? Money and power.
As usual,
thanks for visiting