Realty World – Viking Realty

1. As the housing market continues to struggle for stabilization, many homeowners are turning to strategic default.  Almost 11 million homes are now underwater, according to Corelogic.  Around 3.5 million homeowners are behind in their payments and another 1.5 million homes are already in the foreclosure process, according to RealtyTrac.
 2. Aside from the moral quandary of whether strategic default is the right decision, there also are other factors to consider.
3. borrowers’ credit scores will take a hit. According to FICO, someone with a 680 credit score would see their score decline anywhere between 85-100 points after a strategic default, and someone with a 780 credit score could lose 140-160 points.
4. Borrowers who are considering strategically defaulting on a house should look at it as a last resort, not a first option.  Financial troubles could be eliminated by refinancing, especially if the Obama administration’s program is implemented.
5. Each state has its own rules and regulations regarding foreclosures, which affect both the length of the process and what the borrower could be liable for in the end.

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WASHINGTON — The Federal Reserve signaled Wednesday that a full economic recovery could take nearly three more years, and it went further than ever to assure consumers and businesses that they will be able to borrow cheaply well into the future.
The central bank said it would probably not increase its benchmark interest rate until late 2014 at the earliest — a year and a half later than it had previously said.
The new timetable showed the Fed is concerned that the recovery remains stubbornly slow. But it also thinks inflation will stay tame enough for rates to remain at record lows without igniting price increases.
Chairman Ben Bernanke cautioned that late 2014 is merely its “best guess.” The Fed can shift that plan if the economic picture changes. But he cast doubt on whether that would be necessary.
“Unless there is a substantial strengthening of the economy in the near term, it’s a pretty good guess we will be keeping rates low for some time,” he said.
The Fed has kept its key rate at a record low near zero for about three years. Its new time frame suggests the rate will stay there for roughly an additional three years.
The bank’s tepid outlook also suggests it’s prepared to do more to help the economy. One possibility is a third bond-buying program that would seek to further drive down rates on mortgages and other loans to embolden consumers and businesses to borrow and spend more.
Information obtained from the Calif. Asso. of Realtors with permission.
Article printed in the Mercury News and A.P.  Jan. 25,  2012.
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The leading expert in color, Pantone, Inc., has made it stated that Turquoise was the “it” color for 2010.  But before you deck the house from top to bottom in the gemstone hue, consider the other latest trends.
Behr paint company says neutral is still in–think light colors such as grays, camels and off-whites.  Experts suggest buying bigger furniture such as sofas and armchairs in these safe colors, which never truly go out of style.  Complement neutrals with aqua and gold tones, but stay away from the darker browns, which are becoming passé.
While monochromatic schemes are still versatile and dependable, HGTV says the real winners in the color game right now are bold jewel colors such as ruby red or emerald green and the brighter the better–especially if it’s a purple hue.  Experts advise pairing these daring tones with a smoky charcoal or a softer black to give a room a vintage feel.
Going green and getting back to nature is a major trend, too.  Earthier tones, such as sand or yellow-greens, are perfect for living rooms or kitchens.  But going back to your roots doesn’t just mean dipping into Mother Earth’s favorite colors.  Decorators say Asian-inspired or tribal patterns are adorning decorative elements consumers look to get the most bang for their buck.  Think pillows, area rugs or murals as key items this season.

Before you put your home on the market,take the time to do a little “snooping” on your neighbors by comparing your home to others on the market and visiting open houses.  Visiting a few open houses can give you a better idea of what your home is worth and can highlight needed improvements.
If two or three houses that you visit, for example, have recently redone their roofs or windows, you probably should put those repairs toward the top of your to-do list, so your home doesn’t suffer from comparison once you start marketing it.
Visiting open houses also give you the chance to see how to “stage” your home to show its best features.  Take notice of what appeals to you as you walk through the house and what little things jump out at you that you may have overlooked in your own home.

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The Fremont Planning Commission held a work session on Thursday, Nov 17 to discuss the proposed Climate Action Plan (CAP).  Among the implementing measures is a Residential Energy Conservation Ordinance (RECO) that would require energy retrofits be completed when a home is sold. This could cost a home seller hundreds of dollars.
 Realtor members have testified at several meetings and met with Fremont officials in an attempt to remove these proposals from the CAP.  The Planning Commission appears to understand the negative impacts such requirements would have on the real estate market. However, City staff are still set on including the RECO, and it’s point-of-sale requirements, in the final CAP.
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Most homeowners believe a home inspection provides valuable information that helps them avoid home maintenance problems and save money, according to a recent survey by Harris Interactive and the American Society of Home Inspectors.  Seven out of ten homeowners surveyed say the home inspection on their current home helped them avoid potential problems with their home, and almost two-thirds (64%) say they saved money in the long run because the inspection uncovered minor issues that could be easily remedied.  The survey also finds that nearly 90% of homeowners believe home inspections are a necessity, not a luxury.
While many homeowners who had an inspection understand the value it provides, many still incorrectly believe that certain components are included in a standard home inspection.  For example, electrical wiring and plumbing behind drywall, and swimming pools are commonly mistaken as items that are included in an inspection, but they typically are not.  Also 70% of homeowners surveyed assume all home inspectors are required to be certified and licensed, which is not necessarily the case.
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Despite the ups and downs of the housing market and the decline in home values, most homeowners, including those who are underwater on their mortgages, don’t regret owning a home.  In a recent survey by the National Assoication of Home Builders, three out of four Americans believe that owning a home is the best long-term investment and is worth the risk of a sometimes-volatile housing market.  Approximately 95 percent say they are happy with the decision to own a home.
The sentiment is also strong among homeowners who are underwater on their mortgages.  Nearly two-thirds believe owning a home is worth the risk, and 83% say they are happy with their decision to own a home.
Four out of five  (80%) say they would advise a friend or family member to buy a home, while slightly fewer underwater (78%) would do the same.  Only 19% of homeowners who are underwater believe homeownership is too risky.
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When you buy a new home,you’ll eagerly await the day you can move in.  But how is that date determined?  The date of possession is one of several details that must be negotiated between you and the seller.
In most cases, possession will be transferred after you have signed your mortgage loan and a clear title has been transferred.  Then, when you and the seller agree on a date, it will be incorporated into the written contract.  Once this is done, the date cannot be changed without written agreement.
In rare cases, a seller may request to stay in the house for a short while after closing.  If the buyer agrees, a post-sale occupancy agreement must be put into writing and included as part of the contract.  The seller may be asked to pay a rental fee, which is agreed upon by both parties.
The buyer may also request permission to take occupancy before the purchase transaction is completed.  This, too, must be agreed in writing and the rental stipulations will be included in the purchase agreement.
Many aspects of the possession date are negotiable, but special provisions should be thoroughly spelled out and mutually agreed upon in writing.
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Total number of units are delinquent (past 30 days late) on their assessments.
Pending litigation exists AGAINST the association.
One entity (individual, investment group, partnership or corporation) owns more than certain % of the total number of units.
Commercial space makes up more than certain % of the total ownership (not total number of units) of the association.
No more than certain % of the total number of units can be rentals.

MBA President and CEO David Stevens urges Congress to reinstate the increased conforming loan limits that expired at the end of September; upon expiration, conforming loan limits in many high-cost areas fell from $729,750 to $625,000, which MBA said hampers the ability of many borrowers to obtain FHA- and government-sponsored enterprise-backed mortgages.
“The reduction of the FHA and GSE loan limits formula from 125 percent to 115 percent of median area home price will impact approximately 593 counties in 42 states,” Stevens noted. “Additionally, the reduction of the limits in high-cost areas will affect approximately 75 counties in 13 states. The MBA urges the Senate to act quickly on this extension to prevent further damage to our nation’s housing market.”
The letter went to Senate Majority Leader Harry Reid, D-Nev.; Minority Leader Mitch McConnell, R-Ky.; Senate Appropriations Committee Chairman Daniel Inouye, D-Hawaii; and Committee Ranking Member Thad Cochran, R-Miss.
The Senate is expected to consider the appropriations bill later this week.