Help for Struggling Homeowners!

The latest government rescue plan for homeowners are two new programs Home Affordable Modification Program (HAMP) and the Home Affordable Foreclosure Alternatives (HAFA) program. If HAMP won't work, which it hasn't for 93% of struggling homeowners then HAFA is the follow-up option.

These programs are designed to assist:

1. Owner-occupied properties which are currently delinquent on mortgage payments or in default.
2. Mortgage balance is less than $729,750 purchased prior to January 1, 2009

If a borrower qualifies, HAMP can reduce interest rates down to 2%, extend a mortgage to 40 years and even waive interest on deferred payments.

HAFA steps in to assist borrowers who are unable to complete HAMP or go into default and miss payments while in HAMP. HAFA was designed to streamline and simplify the short sale process including accepting a Deed in Lieu (handing over the keys to the bank) or signing a short sale agreement with the bank.

If you are a seller struggling to keep your home there are numerous options for you. None of them are easy or a quick fix, but help is out there to keep you in your home.

If you have any questions please do not hesitate to call or email me- I'm here to help!

(619) 224-7249 or ashley.degen@gmail.com

Happy Real Estate Summer!

The real estate market has continued to improve over the past year, but now that the Federal first-time buyer tax credit is OVER where will we go from here? With only about 1/2 of the California State "first time buyer" tax credit left will our market dip again?

May was an off-the-charts month for my business, personally, our escrow office was swamped and my office had the highest number of closings in the past 2 years. Of course, many of these transactions were taking advantage of the federal AND state tax credits, a lucky select few have been able to take advantage of BOTH credits, saving up to $18k. We will know by July 1st how the market will react post-federal tax credit (credit expires June 30th) and by that time the state money will be running low as well.

A big positive I have seen is far more "regular" sales in condos in Point Loma, Ocean Beach and nearby. I recently took a client out to look at 6 condos and EVERY SINGLE ONE was a REGULAR SALE... this was unheard of last year.

If you have any questions or are looking to buy or sell please call or email me 619-224-7249 or adegen@coldwellbanker.com

I'm Your Short Sale & Foreclosure Resource Specialist!

Short sales and foreclosures can be a headache but I am committed to making these transactions as smooth as possible. I have just received my Short-Sale & Foreclosure Resource Specialist (SFR) designation after taking specialized certification classes in these transactions.

Looking to buy or sell? Need to do a short sale? I'm your agent! Call or email me with any questions (619) 224-7249 or adegen@coldwellbanker.com

Positive Real Estate News

The real estate market has continued its upward turn month over month and now the median price has continued its rise as well. San Diego saw a 13% gain from November '09 to December '09 which is one of the largest gains since 1988.

Rumors continue to spread that the worst is still yet to come when the banks release their "shadow" inventory and a wave of foreclosures hit the market, but insiders say this is not the case. Bank foreclosures representitives say they will continue to disburse a "trickle" of foreclosures similar to what we have seen for the past several months.

One new change is with FHA loan guidelines which will make FHA condo complexes jump through hoops to gain approval.

First Time Buyer Tax Credit Extension-- Extended and Expanded!

The $8,000 first-time homebuyer tax credit has been extended until Spring (under contract by April 30th close escrow by June).

Not only has it been extended until the spring it has also been expanded to include buyers who have owned their current residence for at least 5 years looking to purchase a new primary residence for a credit of $6,500.

The income limits have also been raised to $125,000 for individuals and $225,000 for married couples.

The maximum purchase price must be $800,000 or less.

Has the Real Estate Market Turned?

After a positive summer and a successful-to-date fall it looks like the lower priced condos and house are on their way back up.

Summer typically is the best season for real estate in San Diego but summer ended 2 months ago and sales are still being made. The most prevalent change has been in the lower price-range of homes [houses under $350k and condos under $250k]. A year ago you could find tons of houses around San Diego for under $350k--but not anymore. The days of finding a structurally-sound, finance-able house in a safe neighborhood appear to be gone. Houses under $350k, whether bank-owned, short sale or traditional, are in bidding wars often with over 10 offers.
In the past months investors have bought many of the un-financeable properties around town, "flipped" them to suit VA/FHA financing requirements and are reselling them, attracting a desperate buyer pool frantic to qualify for the 1st time buyer tax credit and/or purchase a detached house before houses are no longer a financial option. This is great for our market; formerly trashed houses are being fixed up, more houses are becoming loan-able, owner-occupied buyers are now able to purchase these houses and investors are still making money with a short turn over.
Plans to extend the first time buyer tax credit into Spring are circulating around congress-- what will this mean for the market this Winter? Hopefully good things. We should know in the coming days or weeks all the details of this extension.

If you have any questions please do not hesitate to email me -- adegen@coldwellbanker.com

San Diego Real Estate Market-- It's getting "better"!

Good news for the San Diego real estate market is causing frustration for buyers-- Summer has shown a positive change in the housing market and prices are turning. On par with the season, with beach congestion, tourism has brought more buyers to our city which is great for our economy and real estate but it is causing buyers to frequently be "outbid" on purchases. Almost all [detached] houses priced under $300k are being sold with many offers for over asking price.

Buyers whom 3 years ago could barely afford San Diego's condo market have recently become able to purchase a detached house and a year ago could still "negotiate" the offer and price. Yes, the bulk of these sales were/are foreclosures and short sales but in the past few months low-ball offers have become a thing of the past. Sellers are under-pricing listings, allowing the buyer pool to bid up the price and determine the actual value in the property.

Conservative loans and government loans (FHA) are also restricting owner-occupied buyers from purchasing homes that need a little TLC. Cash buyers and large-down conventional purchasers are scooping up all the small fixer houses because strict loan requirements make a house with excessive peeling paint [etc.] un-loanable.

It is still a great time to buy but buyers need to be confident in their purchase, know the comps and write their offer aggressively.