> Approximately 1 in 6 mortgages in the United States are upside down in a negative equity position, which means that, in order to sell their homes in the future, they will have to bring a check to the closing table or negotiate a short sale with their lender.

>A short sale is a ZERO NET seller transaction. Yes, the seller walks away from the sale without any proceeds, but is out from under a crushing debt, and onto the first steps to financial recovery.

>A short sale is not as severe an impact on your credit as a foreclosure.  If you are facing foreclosure, you have nothing to lose by attempting to  negotiate a short sale.  The lender doesn’t really want your home and the economic  climate makes a short sale a much more palatable event for the homeowner and the lender.

>It is not necessary to be behind in  payments to effect a short sale, but if you are behind in your payments,  a Notice of Default may be imminent with foreclosure on its heels.  A valid hardship must be present and some qualifying exists to negotiate a short sale.  Work with a competent REALTOR on this one to get it right.

FIRST FINANCIAL ADVANTAGE is a Certified Distressed Property Counseling service.  We are here to guide homeowners through the rough financial times and help you see the options available to you.  Call Bob or Konnie Warburton at 530-913-1799   Consultation is FREE

World renowned American cyclists Lance Armstrong, Levi Leipheimer and Chris Horner were in the field Sunday (June 21) for the 49th Annual Nevada City Bicycle Classic, the most exciting one-day cycling competition in the nation. Armstrong, one of the world’s best known athletes, is a seven time winner of international cycling’s biggest event, the Tour de France. We were about 30,000 strong in Nevada City along the 1.1 mile long course…cheering on some of the best cyclists in the world.

The buzz on the street was all about Lance and how he would compete here…. was this a warm-up for him to prepare for the Tour de France; was he here to give an assist to other team riders in their securing a spot in the Tour de France???  I have to say that all the questions were put seriously to rest when, with about 6 laps to go to the finish, Lance seemed to swuitch on those after burners and left everyone behind.  His power, speed and control is amazing…especially on this short and very tight course.  As Lance crossed that finish line, arms up in victory, we all felt the adrelin he felt and the energy of watching such an incredible athlete!

Lance we all, in Nevada County, wish you speed, strength, endurance and success in France…. we are all right there with you!!

Konnie

Watch for upcoming events sponsored by the local chapter. And, visit www.slowfoodusa.org or www.slowfood.com for more information about Slow Food.

Loans that sounded too good to be true … No document, no income qualification, easy approval, and a low low “teaser” interest rate.  Many of the homeowners couldn’t afford the loans they were offered. When the  adjustable rates soared after two or three years. the threat of foreclosure skyrocketed. 

But the State of Massachusetts Attorney General said “no way”. After winning a series of lower court decisions the State Supreme Court found that many of  these loans packed  such a combination of unfair and deceptive terms that homeowners could be protected from foreclosure because the actions of the lender involved in the suit was unfair and illegal.

What does this mean to you?  If you are having trouble  repaying an adjustable-rate mortgage, contact the attorney general’s office in your state.  Several other states already have lawsuits pending against subprime lenders.

Every home buyer and home seller has the same question:  Has California real estate markets hit bottom?? If you are looking at the number of annual home sales the answer is “yes” and the answer is “not yet” if you are looking at median home prices, according to the California Association of REALTORS 2009 economic forecast.

California has recovered from two significant downturns since 1970.  Between 1978 and 1982, double-digit interest rates put mortgages out of reach for most home buyers creating a 61% plunge is sales prices.  The second, between 1988-1994, was fueled by a national recession in 1990-91 with subsequent job losses in defense, aerospace, and financial sectors.

Current market conditions began to surface in the last part of 2006, beginning of 2007 with the meltdown of the so called sub-prime mortgage market. This was followed later in 2007 by the credit crunch, which grew into a full scale financial freeze by fall of 2008.  Each of these damaged the housing market, with the last two undoubtedly weakening the economy as a whole. Only in recent months — three years into the current housing downturn — has the market faced the new challenge in the form of an economic recession.  A recession will very likely delay a turnaround in the housing market.  Even so, statewide trends will vary and what counts is the trend in the local market.  A REALTOR will look at present inventory vs. homes sold each month to determine duration of inventory.  Inventory duration of 8 months or longer indicates a longer road to a turnaround.

Ultimately it is all about timing.  Timing matters a lot less if you are buying a home you will be living in for 6-10 years.  Buyers who adopt a long term strategy may find the timing is now to buy when they find a home that meets their needs and is affordable.  That home may not be available six months from now.  With inventory plentiful and interest rates down, buyer indicators are strong and should remain so for some months.

We are near bottom and can see bottom, with more stable prices on the horizon by the second half of 2009 as the statewide median price continues to be influenced by the statewide foreclosure and short sale market.

2. PENT UP DEMAND
Buyers and Sellers have been telling their REALTORS that they are waiting for the Presidential election to be over and an economic stimulus package to be put into place.  The election is now behind us and the bailout is in motion.  People still are living their lives … getting married, having children, retiring, relocating.  Many of them waited to buy or sell real estate, waiting for the market conditions to improve.  Look for this pent up demand to start showing up in the market in 2009.

3. THE CREDIT CRUNCH
Credit is still tight.  We are back to qualifying buyers the way it was done in the 1980′s. However, there are great loans out there; and with the bailout funds as well as new guidelines for FHA, Fannie Mae and Freddie Mac more money will flow into the system.  Many credit unions are flush with cash and making excellent loans to highly qualified buyers. As the credit eases this year, buying and selling will become easier.

4. INVENTORY AND DAYS ON MARKET
The amount of inventory and days on market are the best measure of market changes.  Prices always lag behind these statistics.  Your REALTOR tracks these statistics and as inventory shrinks and days on market shorten, we begin to see prices stabilize and market begiin to shift up.  Look for this to happen in 2009.

5. DEMOGRAPHICS
In 2008, the size of Gen Y (born 1977 to 1994) surpassed the size of the Baby Boom generation.  Gen Y wants to and will own real estate. Gen Y is just now hitting its early 30′s and many are buying their first homes. On the other side, the Baby Boomers are most likely retiring.  They are selling larger homes to downsize into a retirement home, or buying second homes.  As new home building has really slowed down so there are fewer new homes being built, the  demand for existing homes will increase and inventory will shrink.

THE CONCLUSION:

The question is not whether there will be another real estate boom —- there will be.  The issue is how long it will be before it starts.  We, at REALTY EXECUTIVES, watch this local market intently and full time. The statistics that we follow and crunch every day allow us to advise what you real estate future holds ….  call us to consult and plan you real estate moves.

North of Nevada City, North San Juan has always been known as unique for its sense of community and self-sufficiency.

In 1853, gold was discovered here and North San Juan became a boomtown. North San Juan was named by a German miner who had served in the Mexican war and thought the area looked like a hill he saw with a prison built on it called San Juan de Ulloa.

The middle Yuba Canal provided water, making hydraulic mining possible in the area on a grand scale. And North San Juan became home to thousands. In 1884, hydraulic mining ended and North San Juan real estate ceased being about gold and became desirable for its fertile soil and away-from-it-all location.

Many of the town’s early structures were built of brick and equipped with the mandatory iron doors and shutters, and a few still remain in good repair today, even as impressive homes and organic farms replace the outdated makeshift homes settled by disillusioned hippies fleeing San Francisco after the Summer of Love.

North San Juan real estate is as diverse as its population. Its residents are as likely to be shopping at local market Mother Truckers for local organic produce as producing a Sufi dancing performance at historic North Columbia Schoolhouse, enjoying a community-wide Thanksgiving dinner, or traveling to hear Noth San Juan’s most famous resident (internationally acclaimed poet Gary Snyderr) read from his most recent book.

Each Western Nevada county neighborhood has its distinctive feeling and North San Juan, if not the most distinctive, has a history and an ambience unlike any other.

View all North San Juan properties in the MLS