RealEstate680

Homes in Walnut Creek and the 680 corridor have been excluded from Federal and State grants for years.  The purchase price and loan amounts were always too high.  The federal stimulus package continues to assist people who have the income to support the monthly mortgage payments to live in Walnut Creek and central Contra Costa County.  And here’s how.

The Nehemiah Program has been around for decades it has helped over a quarter of a million Americans purchase homes. Unlike some down payment assistance programs, Nehemiah offers down payment help to anyone who qualifies for an approved FHA loan. There are no limits on income or assets, but buyers must have an FHA loan or be pre-approved for an FHA mortgage. 

Nehemiah will allow up to 6% of the final contract sales price for down payment and/or closing costs.  It’s available for first-time and repeat homebuyers.  You can use it  for new construction and resale homes, with no geographical restrictions.

 This means a FHA loan up to a $750,000 loan amount with a supporting Nehemiah grant to cover the down payment. I’m sure certain restrictions are attache to this product, but if you want to buy a Walnut Creek home with nothing down, this may be one fo the ways to do it.

Days on market is a good way to keep in touch with home sales.  Homes sales in Brentwood continue to fluctuate, but the overall signs are improving.

Walnut Creek home sales has always been the last to soften and the first to rebound when looking at the Contra Costa real estate trends.  There are amazing similarities to these graphs.

Brentwood continues to experience a lot of bank owned properties, but the trends are very promising. 

It’s a great time to buy residential real estate!

These statistics continue to grow.  As of today in Brentwood there are 531 homes for sale, 167 of them are REO, Bank owned or 30%.  In Antioch there are 1187 homes for sale, 447 of them are REO or 37%.  And in Oakley there are 359 homes for sale and 115 of them are Bank owned or 32%.

This is recipe for aggressive buyers to get fantastic deal on homes.

I had the pleasure of meeting Kenneth Session today in his office in Oakland, California.  Kenny has created an incredible portfolio of REO, that’s “real estate owned by banks,” to those outside the real estate business.  His portfolio is in Alameda and Contra Costa Counties.

http://www.reuters.com/article/pressRelease/idUS16943+11-Jan-2008+BW20080111

The link above is an article that includes Kenny Sessions with Mayor Ron Dellums of Oakland, California.  It’s be coming very clear that a hand full of real estate brokers control this part of the market.  Stay tuned for more information about bank owned properties in Contra Costa County.

Walnut Creek and the 680 corridor has its share of SHORT SALES.  A short sales is when a lender accepts a reduced amount on the mortgage to avoid foreclosure.  The real estate community in Contra Costa County is just learning the procedures of short sales.  If you are interested in learning more about short sales in Walnut Creek, Pleasant Hill and the 680 corridor, I can show your the listings; and we can create a game plan that meets the needs of the buyer, seller and lender.

Whether you are buying or selling, it’s very important to deal with a real estate professioanl that knows how the short sale process works and can guide you through.  Sellers have to disclose just like a normal sale and buyers have to do the inspections needed to show the condition of the home.  In many cases this is a great way for a buyer to buy a home at a discount and for a seller to avoid foreclosure and possible bankruptcy.

We live in a very diverse county.  On the positive side, we have always had good employment, measured growth and although people in east county will argue; good transportation.  BART put Contra Costa on the map.  In the 1980s corporations moved out of San Francisco to Oakland, San Ramon and Walnut Creek.  Cheaper rents, yes; but also a better and less expensive labor force.

The past 12 months in Conta Costa County has produced a large increase in mortgage defaults.  Buyers are still relectant to get into the market.  “LOOKING FOR THE BOTTOM OF THE REAL ESTATE MARKET.”

According to Data-Quick, a real estate reporting company; last week Walnut Creek did not add any foreclosures, neither did Alamo or Danville, Lafayette, nope and Orinda and Moraga–not a one.  The 680 and 24 corridor has a few homes owned buy banks and several homeowners trying to get out from underneath their debts.

Take the time to research the real estate markets that interest you.  Walnut Creek is a good example of a buyers market.  All prices ranges from first time hone buyers to multi million dollar homes.  The new FHA financing to a perfect tool for mortgages up to $725,000 in Walnut Creek, Concord, Pleasant Hill, etc.

It’s a great time to buy a homes!

Real Estate Owned is the full name for what we call REO.  These are properties that the Lender/Bank has actually taken back from the owner.  The homeowner has moved out and it’s the responsibility of the Bank to sell these properties.  The real estate community is seeing more and more of these as the short sales become REO.  Sometimes it’s a lot easier to deal with the bank than the homeowner trying to get out of the debt on their home through a short sale.

Here’s the rub.  Banks need to keep these properties up.  When a house is not occupied, itgets run down.  The first thing to go is the landscaping.  I’m not really talking about that.  I’m talking about water damage, critters making it their home.  Homeless people using the house to get out of the elements. That sort of thing.

Most of the time, the new buyer is look for a home that they can fix up, but not have to replace walls, framing and foundation.  The other thing is the new lender wants to make sure that they are lending on a home that is habitable.  Especially in this lending environment where lenders are making sure they fund investment quality loans.

If you are buying a REO make sure your lender is comfortable with the appraisal and the appraiser does not note that the house has major problems.  The lender may not lend on the property.  Since most of the Bank owned properties are purchased as-is, I ouwld also suggest a full home inspection as well as any other inspections that are needed. Be careful, you want to make sure you know what you are buying for you money.

Most of the bank owned properties in Contra Costa County are in East County.  However, there are a fair amount of them scatter all over the county.  It is a good idea to put these into the mix, however I think you’ll find that a motivated seller in this market will provide you with a good deal on a home too.

Great news for homeowners who face short sales on their primary residence.  The House of Representatives overwhelmingly approved legislation that would end the controversial practice of treating the balance of a home sold at a loss by a lender.  In other words, under current tax law; the homeowner has  the additional burden of having to pay income tax on the difference between what their foreclosed home sold for and what they paid for the house.

This practice has forced many families into Bankruptcy as part of losing their home.  Kind of a double whammy.  This will also help Banks and mortgage brokers get these homes on the market and sold.  This should speed up the process.  It also allow families to get on with their life and resolves some of the additional financial burden.  it’s all good.