Changes

After being with Coldwell Banker in Palo Alto for five years, I am now at my new office with Keller Williams in Cupertino. The commute won’t be as long anymore and I am very pleased with the culture and working environment at Keller Williams!

Hello, Again!

I know, I haven’t posted anything on my Blog in ages! 

Not many things have changed for the best, but if anything, they’ve gotten worse in the Real Estate Market. Fortunately for Palo Alto, while it is true that property price reductions are abundant throughout, its market continues to hold itself pretty well in spite of all the negative reports in the media.

Based on my own experience and that of fellow Realtors in my office, Open Houses are very well attended. It seems that there’s plenty of money stored somewhere out there in coffers, mattrasses or what have you, ready to make a move. The question looming in the air is “What’s going to happen?” The answer to that question is, of course, answered with a barrage of speculations resulting from the complexity of the situation.

With greed as the driving force, poor and irresponsible decisions were made on the part of many. Others made them due to ignorance or due to language barriers that prevented them to clearly understand what they were getting into, or were misled by dishonest lenders.  Easy and inexpensive money was used in ways that now seem unthinkable allowing anybody to place bids on sales over asking price that resulted in inflated property values throughout the nation. Then the defaults began…!  Now somebody has to pay for the mess.  That somebody is you, the taxpayer.  The “Rescue Plan” signed by President Bush is a mixed blessing and the problems we are facingn may have to continue until confidence on and among those in the lending business is restored and the Rescue Plan benefits begin to be implemented.

In the mean time, the opportunities for buyers with good credit and money are abundant. They haven’t had a better market than this as interest rates are low and sellers are willing to negotiate anything in order to move on. Those who intend to take advantage of the $729,500 Conforming Loan Limits must close their transactions before December 31, 2008, which means they must be in contract by November 30, 2008 if they opt for a 30 day close.

Yesterday evening I attended a Foreclosure Prevention Workshop hosted by “EPA CAN DO” and Community Legal Services in East Palo Alto.  “EPA CAN DO” stands for East Palo Alto Community Alliance Neighborhood Development Organization and is a membership-based Community Development Corporation.

The workshop took place at the Fair Oaks Community Center in Redwood City. It was sponsored by Wells Fargo Bank, Citybank, San Mateo County, City of Redwood City, IndyMac Bank, Washington Mutual-Chase, Meriwest Credit Union and the Fair Oaks Community Center Redwood City.

Several topics in relation to Foreclosure were discussed by Attorneys, Real Estate Professionals and Lenders. Among the most salient where the importance of seeking legal and financial advice as soon as possible when at risk of Foreclosure, the pressing need to develop a Family Budget as a tool to work with the lenders in negotiating a loan modification and options available to those at risk.

According to Greg Meyers, Community Relations Manager at Meriwest Credit Union, there are “Six Warning Signs of Financial Troubles”:

1- More than 20% of your income is going to pay your credit cards

2- You’re borrowing money to make payments on loans that you already have

3- You’re frequently at, near, or over your credit card limit

4- You’re paying your bills late or putting off bills to the doctor

5- You’re paying your bills late or putting off bills to the doctor because you don’t think you have enough money

6- You’re working overtime or second job to cover food, housing or other living expenses

If you or anyone you know is at risk of your home due to foreclosure because you have received a Notice of Default from your lender, contact EPA CAN DO As soon as possible.  Don’t lose your home due to inaction! 

They offer assistance FREE OF CHARGE!  Here is their contact information:

 EPA CAN DO

2369 Universtity Avenue – East Palo Alto, CA 94303

Phone: (650) 473-9838

Web:    www.epacando.org

“Hope Now”

What do you do if you bought one of those Adjustable Rate Loans to purchase your home, you are strapped for cash, can barely make the monthly mortgage payment and your rate is about to re-set?

As we all have learned through the news media, many people have lost their homes or are at risk of doing so because of their inability to pay the mortgage on their homes.

Because of the impact this situation on our economy, President Bush issued an initiative called Hope Now around Mid-December as an effort to help alleviate the problem.

Hope Now is in essence an accord into which all those individuals and corporations involved in the business of making money by lending it may choose to enter to help other individuals who are facing a possible default of their mortgage obligations. Many lenders, loan servicers and investors have found that being flexible is in their best interest and are willing to work out plans of debt repayment.

The Hope Now initiative helps those individuals at risk buy time through a freezing of interest rates which in turn allows them to find a lower-rate loan and attain a more manageable loan payment.

If you or someone you know is in a financial situation that may lead to a default on a mortgage, you can call the national counseling hotline at:

(888) 995-4673 or, easier to remember: (888) 995-HOPE.

They also have a website:

www.HopeNow.com

A counselor (HUD-approved) will provide assistance in finding the best options based on each individual’s financial situation and recommend a course of action.

Be aware that this rate-freeze may not be available to all and you must find out if you are qualified for it based on your particular financial situation. If you do not qualify, one of their counselors will provide you advice on what your options are.

Home owners who are at high risk of default after a rate reset may qualify for this rate-freeze if they are ineligible for re-financing, occupy the home as their primary residence and have a low credit score (under 660) that has not increased since the loan was issued to them. Although this rate freeze may be available to some borrowers, they still need to make changes to their financial situation.

Those borrowers who have defaulted already may pursue venues such as a short sale, or deed in lieu of foreclosure. They do however, need to call as soon as possible as they may not avoid foreclosure due to the short time they are allotted to act following the notice of default.

Be prepared when you call, have all your loan documents (and all related paperwork) with you at the time of your call and expect to spend some time on the phone. These counselors are busy people due to the high volume of calls they handle and it is in your best interest to optimize the time you spend with them.

Yes, It Is A Buyer’s Market..!

It has been weeks already since we started getting the news that home sales and prices have been dropping at the national and state levels. However, in the San Francisco Mid-Peninsula home sales are steady and continue to see multiple offers. It is true that there are some pockets here and thee where some price reductions have been noted, but overall, we have an excellent market for those who want to buy or sell property.

Interest rates continue to be relatively low by historical standards. Money’s accessibility certainly has changed due to the sub-prime lending mess, but it certainly has not become scarce. Good credit is still a main predictor of its price and how readily it is obtained.

With the exception of highly desirable areas like Palo Alto and Menlo Park among others, housing inventories have increased throughout the peninsula giving buyers an increased pool of properties to select from and this gets even better as a buying proposition when we consider the many price reductions reported in all areas.

Serious buyers are out there, willing and ready to purchase when they find the property that meets their needs, their taste and their price.

Those sellers that price their offerings strategically in consideration to the current market situation are the winners. Those sellers who remain in the mindset of the market boom of days past and thus overprice their offerings will continue to see their property listings age in the market.

This is unquestionably a buyer’s market.

Sellers must set an asking price that is attractive to buyers for their property to sell fast.  It is the buyer after all who sets the real price by virtue of the dollar value they put onto their offer to purchase.

Buyers, now it’s your turn!

Everything that goes up eventually has to come down and the Real Estate Market is no exception. Or rather, I should say… the Money Lending Market!

Unfortunatelly, the lending market’s problems spill over onto the Real Estate Market and the results are a slow down in the activity.

It was too good to be true!

Money was cheap and easy to get for a long while!

If you got in at the right time, now you’re enjoying the benefits of a decision well made.

Many people unfortunately are now suffering the consequences of money loans acquired without the proper understanding of what was involved in the specific deal they got from their lenders. Many of them are losing their homes.

But looking at the positive side of the situation, the opportunities are beginning to abound for the savvy buyers out there. Prices are going down all accross the board as reflected by the myriad of price reductions in homes being offered for sale in most parts of not only the San Francisco Mid-Peninsula, but other parts of the state and the country.

Buyers…now it’s your turn!

Introducing My First Blog…!

Hello Friends, Family and Guests!

I am pleased to present to you my very first blog!  

The purpose of this space is to discuss San Francisco Mid-Peninsula Real Estate matters from my perspective as a Realtor. I do intend to post as well my perspectives on the community at large, services, events, the world, current issues and other things.

I will be honored to have you as a guest and hopefully enjoy the privilege of hosting your thoughts, ideas and perspectives on my discussions. Therefore, please feel free add your word to my postings.

 Pablo.