July Sold Graphs Added
The graphs for July Solds were added to the www.SloWatch.com site home page. You’ll see that SLO County isn’t setting the world on fire with the amount of sales but look at Santa Maria’s sales. Foreclosures and the lower prices of homes in that area have resulted in a lot of activity this year!
Majority Fail Broker and Real Estate Agent Tests
According to the California Department of Real Estate, 60% of people the took a brokers license test and 53% who took a sales agent test in the first half of 2008 FAILED! What’s scary are the ones that failed can take the test again and again until they pass. The courses you need to take are all theory and no practical education like how to write a purchase contract, how to negotiate the best deal for a client, or how to best market a listing. You either need to already have those skills or try to find someplace where you can learn them quick. I’d hate to be the unlucky Buyer or Seller that had one of these agents as their first client (or first thirty clients!).
What’s unique about the Keith Byrd Team is that agents on my team are ones that I pick to be on it. Once you are in the industry, you know who is good and who isn’t…and I’ve got some of the BEST in the area!
Real Estate Chaos Hits Appraisal Industry
The following is from the San Franciso Chronical but it’s happening here too. Because some lenders are declining appraisals, some mortgage brokers recommend that buyers leave their financing contingencies in place until the lender has signed off on the appraisal. Or, get an appraisal before you list your property so 1) you’ll price it right out of the chute, and 2) reduce the chances of the property falling out of escrow because of the appraisal.
“As a result of the current market and a return to proper underwriting guidelines, appraisers are finding it increasingly difficult to get lenders to accept appraisals. Some lenders even are declining low appraisals and scrutinizing loan applications more carefully than in previous real estate cycles. Whereas most lenders used to evaluate a home appraisal’s credibility based on comparisons generated from their desk, now some banks are requesting that appraisals be verified by on-site visits to the property, as well as the nearby homes listed as comparables.”
Another Print Publication Bites the Dust
Home magazine will cease publication after its October issue. The parent company, Hachette Filipacchi Meida U.S., said that advertising revenue declined 47% in the second quarter alone. The company’s online site will continue to operate.
California Foreclosure Activity Increases; Default Notices Decline
California led the nation with 72,285 foreclosure filings in July, a 5 percent increase from June and an 85 percent increase from July 2007, according to a recent report by RealtyTrac®. Bank repossessions, auction notices, and default notices all increased in year-over-year comparisons. Default notices however, which are the first phase in foreclosure proceedings, declined 4 percent from June, according to the report. Read the press release here
More Bad News for the Tribune
McClatchy Co, the company that owns the Telegram Tribune, today announced that print ad revenue in July fell a whopping 26 percent in California and 29 percent in Florida. They also reported that online advertising rose 13 percent. Full article here
Emergency Siren Test This Saturday – Noon and 12:30
It’s that time of year when tourists (and locals) get that certain look on their faces when they hear the emergency sirens go off. Why is it that I’ve seen the notification about TV channels converting to digital hundreds of times so far but I seem to only stumble upon the notification about the siren test?
Here’s info about the test from the San Luis Obispo Office of Emergency Services:
On Saturday, August 23, 2008, the County Early Warning System sirens will sound in a full scale test.The Early Warning System sirens will be activated twice during this test. The first activation will take place at 12:00 noon. The sirens will sound again at 12:30 pm. All 131 sirens will sound at the same time during both tests. The sirens will sound for approximately three to five minutes. The Early Warning System sirens were installed as one of the nuclear power plant emergency preparedness requirements for the Diablo Canyon Power Plant. The siren system can be used for other major emergencies where there is a need to alert large numbers of people to tune to a local radio or television station to get information and instructions related to the emergency. The Early Warning System sirens cover an area extending from Cayucos to Willow Road on the northern Nipomo Mesa. The siren coverage area includes the northern Nipomo Mesa, the Five Cities Area, Avila Bay, See Canyon and Squire Canyon areas, Price Canyon area, Baywood Park/Los Osos, City of San Luis Obispo, Morro Bay and Cayucos areas. Residents and visitors in these areas may hear the sirens sound two times during the Saturday test.
The Early Warning System sirens are intended to alert the public to go indoors and monitor a local radio or television station for emergency information. Should the sirens sound during a time other than a test, the public should tune in to a local radio or television station for information.
During the test no action is needed on the part of the public. Please do not call 9-1-1 unless it is to report a serious or life threatening emergency that requires police, fire or medical response.
Ryan Baker’s Mortgage Blog
Today’s blog contains some useful information for those looking into a Home Equity Conversion Mortgage (HECM), also known as a Reverse Mortgage. When someone wants one of these mortgage they are “required to receive consumer education and counseling by a HUD(US Department of Housing & Urban Development)-approved HECM counselor.” The problem is many non-HUD approved mortgage brokers have been providing “advisory” services in connection with HECM loans and charging very inflated fees.
According to HUD, a non-approved mortgage broker may only be compensated for providing purely educational or consultation services to the borrower. All other activities, i.e., essentially the entire loan origination process, must be performed by an approved loan correspondent (FHA approved mortgage broker). These educational activities must constitute meaningful counseling, and cannot constitute steering.
You should know that even if an “advisor” is involved, the borrower still must receive actual counseling from an approved counseling agency, i.e., someone other than the non-approved broker. HUD recently concluded that a reasonable HECM counseling fee by an approved counseling agency was $125 per session. Amounts that are considerably higher ($300 +) can be investigated by HUD and the broker can face criminal charges for over-charging, especially if they are non-approved. There are reports that some agencies charge an excess of $1,000 for these services…please report these people.
On a non-related topic, how amazing are the Olympics? Congrats to Michael Phelps! My actual highlight has been watching Usain Bolt run for Jamiacia. I know he’s not from the
If you have any mortgage questions, I can be reached at 805-540-0866 or RBaker@PeregrineLending.com
School Start Dates
In case you’re wondering when school begins again, here are the start dates:
Atascadero School District – August 27
Lucia Mar (South County) – August 25
San Luis Obispo – August 26
Cayucos – August 25
Coast Union (North Coast) – August 25
Templeton – August 27
Paso Robles – August 25
Santa Maria – August 18
Cuesta College – August 18
Hancock College – August 25
Cal Poly – September 22
