I just got another scam in the mail. This one is for people who currently live in and are paying their property taxes on their primary residence.  These people are offering to make sure you are getting the $7,000 deduction on your property taxes for a $59 fee. Please do not be fooled. These forms are available online on the off chance that you are not already receiving the deduction. However, it is highly likely that if you are living in your primary residence that you already have this deduction.

This job is responsible to coordinate, implement and manage sports and fitness activity programming
at the Pinole Sports and Fitness Center which is a joint use facility with the school district. This is a
relatively new program and offers exciting possibilities for an enterprising and innovative person. Current
programs include fitness classes; teen and adult drop in sports; Tiny Tots and youth sports classes;
summer sports camps; and family fitness days. The program is open weekdays after 6pm, weekends
and school holidays.

Responsibilities include developing and coordinating sports and fitness programs; managing part-time
contract staff; communicating and collaborating with the public, community and school district; marketing;
volunteer management; safety procedures; fee collection; and budget management.

Must have a minimum of 2 years in coordination experience, preferably with an emphasis on sports
and fitness and staff management experience preferred. 15 – 20 hours per week. Flexible hours
and will include weekday evenings and weekends. Part-time, hourly contract position. Pay starts at
$20/hour.

To Apply: Send a cover letter and resume to:
Pinole Recreation Department, 635 Tennent Ave., Pinole, CA 94564.

For additional information, contact Recreation Director Amy Wooldridge at (510) 724-9062
or awooldridge@ci.pinole.ca.us.

Amy Wooldridge
Recreation Director, City of Pinole
(510) 724-9062 office
(510) 390-0776 cell
635 Tennent Avenue, Pinole CA 94564
awooldridge@ci.pinole.ca.us

Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.

1. Sell low and buy low. Because all property values are down, the sellers’ loss on a property is really only a paper loss because the next property they buy also will be a bargain. If they buy smartly, when prices come back up in a few years, they’ll be in better shape.

2. Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.

3. Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.

4. Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.

Source: McClatchy Tribune, Kate Forgach (02/07/2010)

Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the NATIONAL ASSOCIATION of REALTORS®.

Sales increased from the third quarter in 48 states and the District of Columbia; 32 states even saw double-digit gains.

Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.

Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008.

Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.

The Tax Credit Affect

Lawrence Yun, NAR chief economist, said the first-time home buyer tax credit was the dominant factor.

Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties being sold by Fannie Mae that are closed within this period may receive up to 3.5% of the final sales price. Please contact me for more details.

1. REO/ Foreclosure

REO stands for Real Estate Owned and is a foreclosed property that goes back to the mortgage company after an unsuccessful foreclosure auction.

 2. Short Sale

A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.

 3. BPO (Broker Price Opinion)

A BPO is like a Comparable Market Analysis (CMA). Banks pay local Agents to give their ‘opinion’ on how much a house would sell for, using comparable Sold, Pending, and Active listings.

 4. PMI

Private mortgage insurance is required by the mortgage company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.

 5. LTV

Loan-to-value is the percentage relationship between the amount of the loan and the appraised value or sales price (whichever is lower). For example: you purchase a home for $100,000 and you get a mortgage for $90,000. Your loan-to-value is 90%, therefore, the mortgage company would require PMI. 

7. ARM

Adjustable Rate Mortgage is a mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes. There is usually a cap (ceiling) on the amount to which the interest rate can increase.

 6. Negative Amortization

Some adjustable rate mortgages allow the interest rate to fluctuate independently of a required minimum payment. If a borrower makes the minimum payment, it may not cover all of the interest that would normally be due at the current interest rate. In essence, the borrower is deferring the interest payment. The deferred interest is added to the balance of the loan and the loan balance grows larger instead of smaller, which is called negative amortization.

•  Beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors. 

•  Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent.

• The upfront mortgage insurance premium (UFMIP) will increase to 2.25 percent up from 1.75 percent.

• Seller concessions will be reduced to 3 percent from 6 percent.

So you’ve decided to buy a foreclosure, you’ve found one you like and you’ve submitted an offer and it has been accepted, now what? You probably signed an addendum stating the contract is “as is, where is.” Your real estate agent has told you that the bank is not required to submit certain disclosures. What does this mean for you and what should you expect to be told?

1.  Hazards – It makes sense that the banks would not be required to “disclose” information directly related to the property or it’s history because they don’t know anything about it. More than likely no one at the bank as ever actually seen the property. However, this fact does not mean that the bank is exempt from every disclosure. The bank is required to disclose information regarding potential hazards that may affect the property. One of the easiest reports to obtain is a natural hazard disclosure report which is completed by a third party disclosure company and can be purchased for about $100. Although the bank is exempt from the Natural Hazard Disclosure Statement, the bank is “not exempt from applicable statutory obligations to disclose earthquake fault zones, seismic hazard zones, state responsibility areas, very high fire hazard severity zones, special flood hazard areas and flood hazard zones.” The foreclosure seller is also not required to supply any information about special tax assessment districts. Therefore it makes the most sense to require the lender to supply a natural hazard report when you submit your contract. Make sure that the report you request has tax information for the county and city in which you are going to buy.

2. Disclosures – The foreclosure seller must give you any information they have that will materially effect the value and desirability of the property. For example, if a prior buyer conducted a pest inspection of the property and supplied a copy of the inspection to the seller, but decided not to purchase the property, the bank must provide a copy of this inspection to any buyer from that point on.

3. Smoke Detectors - The property must have operable smoke detectors in place and a written statement of compliance must be provided to the buyer. The cost of the compliance is negotiable.

4. Water Heater – The same applies to an operable water heater and a statement of compliance. The cost of the compliance is negotiable.

5. Lead Based Paint – Although a foreclosure seller probably has no idea about whether a property has lead based paint, the seller is required to attest to to their knowledge (or lack thereof) of any known hazards, provide the booklet, ” protect your family from lead in your home,” and give the buyer a 10 day opportunity to inspect for lead if the property was constructed before 1978.

6. Tax Withholding- Although the bank is exempt from the actual withholding laws upon the sale of the property, they are required to disclose the withholding requirement. Although this disclosure requirement is in place, it is a minor issue and does not typically effect the buyer directly.

7. Megan’s Law Database – Also known as the sex offender website, the existence of the website must be disclosed to a potential buyer although neither a seller nor a broker is required to check the website as this would be considered out of their area of expertise. The database is maintained by the Dept of Justice and can be search at www.meganslaw.ca.gov.

Buyers who are in search of a home and have 5% or less to put down toward the purchase of their home may choose to use and Federal Housing Administration loan so that they can keep more of their cash. Additionally, private mortgage insurance costs less under FHA. 

If you are a buyer who wants to purchase a house and you want to get an FHA loan, please be aware that many foreclosed home sellers (lenders) are unwilling to look at offers that are FHA approved. The reason is that FHA lenders are much pickier than conventional lenders and ding the home if it has maintenance issues that would be considered minor for conventional lenders, such as a cracked window or a broken interior door. Moreover, all contracts written for REO’s or short sales must be as-is as required by the seller. FHA may require an item to be repaired which is not allowed by the REO seller. FHA also may require more paperwork to be completed and may do additional inspections beyond the appraisal which can stall or cancel the deal. 

This experience is happening in particular in East Contra Costa County where prices have fallen and multiple offers are standard. If a seller gets two offers and the net price is the same but one buyer is offering 5% down and the other buyer is offering an FHA loan, the seller will choose the conventional offer. This situation will happen even if the FHA offer is higher.

 The key is to try to qualify the buyer with a conventional loan first, such as a 5% down loan. Then if you get the purchase contract and after the appraisal has been completed, request through an addendum to switch to an FHA loan with no added time. Your loan agent should have qualified FHA lenders that can close short of 30 days. Since the appraisal will have already been completed, you will know if the property will be able to qualify for an FHA loan.