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Sonoma County info

Sep 03
0

USDA, Clint Eastwood and first time home buyers

By | Buyers, Financial news, Sonoma County info, Windsor | No Comments

When you see the acronym USDA you might think of meat, or farmers. USDA stands for United States Department of Agriculture. This organization is to support and improve the economy and quality of life in rural America. One way is through the USDA home loan program: a great mortgage for first time home buyers with limited income and very little down payment. It is a great alternative for the more expensive FHA loan programs: less down payment, no mortgage insurance.

When I think of rural areas, I think of the old western movies with Clint Eastwood, not necessary Sonoma County. And yet there are a lot of areas in Sonoma County eligible for the loan product. Because it is a low income program, only the ‘cheaper’ properties will qualify. Last year I was able to help a young couple buy their first home on Wall Street in Windsor. They love where they live and their monthly payment is much lower than when they would be renting.

Per October 1, 2012 this program is changing. In Sonoma County: Windsor, Healdsburg and Sonoma will no longer be eligible. The program will also become somewhat more expensive. Currently USDA loans don’t require mortgage insurance, only an upfront guarantee fee of 3.5%, this fee is added to the total loan balance and financed into the loan. Per Oct 1, the upfront fee will lower to 2% but there will be a new annual fee of 0.3% of the balance of the loan. This annual fee will be added to the monthly programs.

It’s still a great alternative for low income buyers in rural areas. It’s always best to talk to your lender about this program, for more information, please feel free to contact Seliga Financial :  707-577-8737

Mirjam

 

 

Aug 25
0

Time to Evacuate!

By | Around the house, Buyers, Disclosures, Sonoma County info | No Comments

Last week we stayed at a vacation house close to Lassen Volcanic National Park, the home was in a beautiful area surrounded by forest. At one of the last days of our vacation there was a thunderstorm at night which sparked a wild fire about 11 miles south of us. The fire spread fast and we had to evacuate the house that evening.

This is called a natural hazard and part of the disclosures when someone buys a home. Sonoma County also has high fire hazard areas. Besides having this covered by the home owners insurance, there is also a lot a home owner can do to defend his/her home against fire. The California Department of Forestry and Fire Protection has a great website with lots of information.

Landscaping is important. One of the first things to do is to create a defensible space around the house, this is the buffer you create between your home and the grass, trees, shrubs or wild land area. This space is needed to slow or stop the spread of wildfire and it protects the home from catching fire. Also realize that firefighters are reluctant to go into a situation that will put themselves in danger and pick the homes that are easiest to protect first, depending on the situation.

While creating that defensible space, it is also important to use fire resistant plants for landscaping. While there are no ‘fire-proof’ plants, plants with high moisture and have low sap or resin content take longer to ignite. Hardwood trees like maple, poplar and cherry trees are less flammable than pine and fir. Check with your local nursery about fire resistant plants that are suited for your area.

And don’t forget to check with your insurance agent yearly to make sure you have enough coverage in case your home burns down. As mentioned before, a great local agent I can highly recommend is Erin Temple with Vantreo Insurance, she makes sure you have the correct insurance, whether or not you live in a high risk area.

Mirjam

Jun 03
0

Move to a Larger Home in 2012?

By | Economy, RE by the numbers, Sellers, Sonoma County info | No Comments

I have noticed that many homeowners would like to move but somehow don’t feel right now is the right time. This slideshow is a presentation showing that now is a great time to move to a larger home. It shows a comparison what it would mean financial if you would have move to a larger home in 2006 vs 2012. Since home prices have come down so much.  it might not feel moving up is a smart move. The numbers show differently. This is a test and I am looking forward to see whether you can follow the numbers without explanation. It is a Youtube movie. Don’t respond via comments but respond via email plse.

Mirjam

May 27
0

Location, Location, Location: Historic neighborhoods

By | Buyers, Disclosures, Dutch stuff, Sellers, Sonoma County info | No Comments

Living in the Netherlands, it is not unusual to live in a home built in 1700’s, thus about 500 years old. Think about Leiden, Zwolle and even for instance Zwartsluis. World wide you will find many historic neighborhoods, great places to live. As to Santa Rosa I am talking about the older part generally quite often referred to as the JC area.

Before buying a home in an older, historic neighborhood, it’s good to know how this affects the home owner. For the Netherlands, there is an organization for historic monuments, ‘Monumenten Zorg’. The goal is to preserve these properties that have historic value. Take the city of Leiden. Should you buy one of these homes, it’s not unusual to have your remodeling project limited on the outside as well as the inside. A new kitchen? Need a permit. Change of color on the outside and even sometimes the inside? Need a permit. Sidenote: this is extreme, even for Netherlands: it usually affects only the outside, then it’s called a “beschermd Stadsgezicht” -> Protected City Image (that’s the best I can come up with as to translation)

This is not the same for every neighborhood, take for instance the JC area in Santa Rosa, only the outside of a home is considered. The Cultural Heritage Board reviews proposed alterations for historic homes. A good resource is the Processing Review Procedures for Owners of Historic Properties.  Currently there are 8 designated Preservation Districts in Santa Rosa: Burbank Gardens, Cherry Street, McDonald, Olive Park, Railroad Square, Ridgeway, St. Rose and West End.

Bottomline… it’s prudent to do your homework before buying a home. Your local realtor is a great source of information.

Mirjam

 

May 22
0

Loan Modification: are you sure?

By | Foreclosure, Making Home Affordable, Mortgage, Short Sale, Sonoma County info | No Comments

I had a meeting with a homeowner who accepted a perfect loan modification last week. Some thoughts to share:

A Loan Modification is what a lot of homeowners in distress are wishing for. However they can be quite stressful and very difficult to obtain. Percentage wise, only a few are working out. The Pro Publica website has some interesting numbers.

The most successful loan modifications are the ones where the loan has adjusted to a high interest rate and the only thing that makes the payment affordable again is a rate adjustment. These are quite often successful. However, according to CoreLogic in the last quarter of 2011 about 22% of all residential properties with a mortgage are ‘Upside down’ or owe more on their house than it would currently sell for.

What I see more and more happening is that a bank will recast the borrowers loan amount down to the current market value of the house and the deferred amount will be due when the borrower sells the house… That is a great option yes???? Or maybe not????

If you are planning to stay in your house and have no intention of moving, this is a good solution. It will take a very long time to regain some equity in your property but then again, you have to live somewhere…

But what in case you need to sell? Maybe next year? And the house is still not worth what you owe on it? Then you should still a short sale… This is a good option, however, keep in mind that any forgiveness of debt is a taxable event. So if the bank agrees with the short sale, you still owe taxes on the amount forgiven. Right now, under the Mortgage Debt Relief act a lot of home owners do not have to pay taxes on the forgiven amount. For now the Mortgage Debt Relief act ends December 2012. This means that as of right now, if you end up selling your house next year, you’ll end up paying taxes on the amount forgiven: Say the bank takes a $100,000 loss, that is considered regular income…

Something else to keep in mind: for a bank to accept a short sale, you need to have a hard ship. The fact that your house is to small/large due to a change in family situation is NOT a hardship. Side note: the average home owner in USA moves about every 6-8 years.

Bottomline, I see more and more that a loan modification is not the best solution for many home owners. It totally depends on your situation. Weigh your options carefully before accepting the loan modification.

Mirjam