http://www.mingtree.com Real Estate Blog en-us Wed, 08 Sep 2010 10:09:52 GMT Thu, 19 Aug 2010 16:09:50 GMT CF Adaptive Real Estate Services mingtree@mingtree.com mingtree@mingtree.com http://www.mingtree.com/real-estate-blog-article-Thursday-19-August-2010_502.html Have a low interest rate on your mortgage? Make sure you crunch the numbers before you pay down the principal.Would the money used to pay down the mortgage make more than 3.25% (the effective rate of interest on a 5% mortgage after tax savings on interest and deductions) elsewhere? With interest rates going up as the Fed stops buying mortgage-backed bonds and we turn from the financial crisis to fighting a recession-based recovery, it stands to reason that money would be better invested in higher-yield investments than paying down a 5% mortgage to buildup wealth in home equity. This is especially true when the subsidized benefits of a tax deduction for mortgage interest payments in the early years of amortization are factored into the rate.Paying down mortgage debt is emotionally satisfying, but puts a higher portion of the family’s wealth in an illiquid asset; that is, you can’t get to the money when you need it, as quickly as you can with a liquid savings account or bonds. The liquidity of savings and bonds provide more of a financial buffer than the illiquid equity in a home does against financial shocks such as unemployment, illness or loss of a primary breadwinner. This is especially the case since all decline in a home’s value is first absorbed by the homeowner, not the lender.To offset the risks of homeownership, the homeowner is best served by keeping his reserves liquid and his 30-year, fixed rate mortgage intact — at least for the first 10 to 15 years of payments.Copyright © 2010 by first tuesday Realty Publications, Inc. Mortgage & Finance Thu, 19 Aug 2010 16:09:50 GMT http://www.mingtree.com/real-estate-blog-article-Thursday-19-August-2010_502.html http://www.mingtree.com/real-estate-blog-article-Thursday-19-August-2010_501.html As mortgage delinquencies remain somewhat out of control, those looking to capitalize on California’s 2,500,000 struggling underwater homeowners are emerging from the woodworks. They hold in their hands a promise many have been waiting for: to prevent home foreclosure. However, behind their sweet-tasting words is a serpent’s tongue casting about for financially wounded homeowners’ money.Be wary of anybody who promises to be an “expert” in foreclosure prevention – or short sales for that matter. This is not to say in any way that all claiming to be experts have ill intentions, but rather a call to keep your eyes open for the obvious warning signs:■Request for upfront fees:■Guarantees to prevent your foreclosure:■Instructions to stop paying your mortgage, and instead pay them for their services:Those individuals advertising as short sale experts are occasionally using this front as a guise for attracting desperate homeowners, then pulling a bait-and-switch routine and taking on the role of a foreclosure prevention specialist.Loan modifications should be pursued only by the homeowner. The United States Department of Housing and Urban Development (HUD) has free advisors that actually give advice on what your options are. [For a list of nonprofit housing counseling agencies approved by HUD, visit HUD’s counseling agency page at (http://portal.hud.gov/portal/page/portal/HUD/i_want_to/talk_to_a_housing_counselor) or call (800) 569-4287.]Any scammers who demand money upfront are obviously not confident in their “guarantee” or else they wouldn’t mind being paid upon delivering a desirable result.Insisting you stop paying your mortgage may be sound advice, however, if a homeowner decides to take that route they need to pocket that money themselves, saving it for a future down payment instead of giving it to someone else.Copyright © 2010 by first tuesday Realty Publications, Inc. Mortgage & Finance Thu, 19 Aug 2010 16:05:25 GMT http://www.mingtree.com/real-estate-blog-article-Thursday-19-August-2010_501.html http://www.mingtree.com/real-estate-blog-article-Thursday-19-August-2010_500.html In preparation for the deluge of foreclosures expected to wash over California and the country by the end of 2010, Bank of America (B of A) has announced a new program: a $3 billion principal reduction program for homeowner’s with loan-to-value (LTV) ratios exceeding 120% of the home’s current market value. B of A will reduce a homeowner’s LTV ratio to as low as 100%.This program is limited to homeowners who have either an option-ARM or a two-year rollover ARM.Participants of this program will have their loan balance bifurcated. The amount available for possible write-off will be separated as non-interest bearing principal, while the amount a borrower is still expected to pay will continue as interest bearing principal.As soon as the bifurcation occurs, B of A’s loan reduction program resets the payment on the interest-bearing principal to amortize over the remaining term of the 30-year loan. This means higher monthly payments for most of those have already defaulted – a requisite to qualify for this program.One fifth of the non-interest bearing principal will be available for write off annually for the first three years.The reduction for the fourth and fifth years is dependent on the price inflation and appreciation of the home. If the property’s value rises, the remaining two-fifths of the non-interest bearing principal gets dumped back onto the interest-bearing principal, with payments reset to fully amortize the increased principal, resulting in even higher monthly payments.If B of A truly wishes to do society a favor, they will permanently reduce the principal on these ARM loans to LTV levels of 94% in order to make the homeowner solvent and capable of selling or building an equity, as well as turn these explosive short-term ARMs into true real estate loans – long-term, fixed-rate mortgages.Copyright © 2010 by first tuesday Realty Publications, Inc. Market Conditions Thu, 19 Aug 2010 16:02:53 GMT http://www.mingtree.com/real-estate-blog-article-Thursday-19-August-2010_500.html http://www.mingtree.com/real-estate-blog-article-Friday-23-July-2010_498.html Fortuna California, Auto Rama this weekend. Come enjoy the pleasant coastal climate and see hundreds of cars on display, swap meet, social events in a fun small town atmosphere of Fortuna. Events Fri, 23 Jul 2010 13:40:27 GMT http://www.mingtree.com/real-estate-blog-article-Friday-23-July-2010_498.html http://www.mingtree.com/real-estate-blog-article-Wednesday-14-July-2010_497.html The 49th Annual Orick Rodeo was last weekend which is the second rodeo of the Humboldt County season. This week is the the Fortuna Rodeo, always the third week of July. Fortuna celebrates their long running tradition all week long, involving all ages and interests. These are the events that make Humboldt County a special place to live and celebrates the grit and determination of the pioneer spirit in Humboldt County. From the beach town rodeo in Orick, to the Fortuna rodeo in the friendly city, lots to do and enjoy!!! Events Thu, 15 Jul 2010 03:56:12 GMT http://www.mingtree.com/real-estate-blog-article-Wednesday-14-July-2010_497.html http://www.mingtree.com/real-estate-blog-article-Wednesday-23-June-2010_496.html The most popular question asked of us is what is the value of my home? You may have seen the popular cartoon that has circulated for years of the different perspectives of value of the same home such as a magnificent mansion from the eyes of the tax assessor to the crumbling shack from the eyes of a buyer. There is a lot of truth in that old cartoon. When you sell your home, the value is determined by the buyer. This is generally confirmed later by an appraisal on behalf of the buyer’s lender. Over the years the most successful sellers have priced their homes to sell in align with the market value. This allows for less carrying costs by the seller, a less stressful negotiations for the seller and buyer, and a higher probability of closing the sale. For more details on correctly pricing your home for sale, contact a Ming Tree Professional to advise you of all the market conditions and movement. Selling Property Wed, 23 Jun 2010 17:23:48 GMT http://www.mingtree.com/real-estate-blog-article-Wednesday-23-June-2010_496.html http://www.mingtree.com/real-estate-blog-article-Wednesday-2-June-2010_492.html The Motor Vessel MADAKET’s 100th Birthday is coming up this Sunday, June 6th. You’re invited in joining us for this centennial celebration. MADAKET’S 100th Birthday events can be viewed on the museums updated website. Take a look, and if you have visited recently, please refresh your browser when you arrive. Check it out now to learn more!The birthday celebration starts at 11:45 am with a boat parade that will escort MADAKET to the Foot of F Street dock on the Eureka boardwalk. Once she arrives at 12:45 pm, Eureka’s high school band will tribute her, Eureka Mayor Bass will honor her, Father Micheal Cloney will Bless her, and Donna Landry will sing to her! A human spelling of 100 will take place and birthday cake will be served for all! All this is for free, except for the Champagne Birthday Cocktail Cruises aboard MADAKET at 4:00, 5:30 and 7:00 pm. These cruises include a commemorative champagne flute, horsd’ouvres and plenty of champagne. The cost is $35.00 per person. Events Wed, 02 Jun 2010 14:52:57 GMT http://www.mingtree.com/real-estate-blog-article-Wednesday-2-June-2010_492.html http://www.mingtree.com/real-estate-blog-article-Monday-26-April-2010_491.html SACRAMENTO – The Contractors State License Board (CSLB) is reminding licensees that starting today, April 22, 2010, contractors could face fines of up to $37,500 for not complying with federal regulations aimed at protecting them and consumers from exposure to dust from lead-based paints. Contractors conducting renovation or demolition activities in buildings constructed in or before 1978 must receive training from a U.S. EPA-accredited training provider. Contractors or their employees with lead-safety certification from the California Department of Public Health (DPH) may take a four-hour U.S. EPA-accredited course to achieve federal compliance. At least one person in a firm must be trained and certified in renovation. That firm must then apply to U.S. EPA for firm certification. Certification forms and information on accredited training providers is available at www.epa.gov/lead, or call 1-800-424-LEAD (5323). The cost for certification is $300, and it is valid for five years. Training costs vary by provider. The requirements apply to all contractors who disturb lead-based paint in a six-square- foot area or greater indoors, and a 20-square-foot area outdoors. If a DPH-certified inspector or risk assessor determines that a home constructed before 1978 is lead-free, the federal certification is not required for anyone working on that particular building. CSLB has provided a link on its website (www.cslb.ca.gov) for consumers to verify whether a contractor has the required U.S. EPA lead certification when they check the license status of their contractor. News Mon, 26 Apr 2010 18:11:53 GMT http://www.mingtree.com/real-estate-blog-article-Monday-26-April-2010_491.html http://www.mingtree.com/real-estate-blog-article-Monday-15-February-2010_487.html Short sales and Foreclosures are all the rage, but are they a major component of the real estate market here in Humboldt County, CA? Currently in Humboldt County (2/11/10) there are …• 517 total homes on the market• 16 active REO (or bank-owned) homes on the market (3.1%)• 47 active short sale listings on the market (9.1%) In the past month (1/11/10 – 2/11/10) there have been…• 54 total homes sold• 9 REO properties sold (or 16.7%)• 2 short sale properties sold (3.7%) So together, short sales and REO’s account for about 12% of the active homes on the market, and about 20% of the sold homes. Other communities in California are reporting 50% of the homes sold as being REO’s, so while it’s certainly a significant part of our market here, it’s not the major component it is in other areas.Jeff Ragan Market Conditions Mon, 15 Feb 2010 21:32:42 GMT http://www.mingtree.com/real-estate-blog-article-Monday-15-February-2010_487.html