Foreclosure or Short Sale? 6 Reasons Why a Short Sale May Be Your Best Way Out

This will begin a 6 part series of the advantages of a short sale over a foreclosure. Here we go:

Reason 1
A home owner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.

A home owner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years. This means that you may be eligible to purchase a home again in 2 years!

An investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.

An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

So who is this Fannie Mae anyway, and how come she wields so much power?

Well…The Federal National Mortgage Association (FNMA) (NYSE: FNM), commonly known as Fannie Mae, is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.[2]
As of 2008[update], Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac) owned or guaranteed about half of the U.S.'s $12 trillion mortgage market. (wikipedia).
So, these entities control about half of the mortgage market.

Next up… How do Short Sales or Foreclosures impact you ability to get a future loan with a Mortgage Company?

new busineses coming to Folsom

New Businesses Coming to Folsom Soon
(Updated September 2008)

Confirmed Interest in Coming To Folsom & Status:
*Anticipated Opening

Barnes and Noble
Bookstore
Palladio (Iron Point Road & E. Bidwell Street)
Plans in for Building Plan Review
Mid-2009

Cinema West
16 Screen
Movie Complex
Palladio (Iron Point Road & E. Bidwell Street)
Plans in for Building Plan Review
Mid-2009

Circuit City
Electronics
Serpa Ct., Iron Point Rd., & US 50
East of Costco
Here!

Endwave
Telecommunications
Technology
105 Lake Forest Way
Application submitted for Tenant Improvements
Dec. 2008

Fresh and Easy
Grocery
25000 Blue Ravine Road, Suite 101
Application Pending

Fresh and Easy
Grocery
9522 Greenback Lane
Plans in for Building Plan Review

Hampton Inn
Motel
Iron Point Rd., E. Bidwell St., & Placerville Rd.
Building Plans submitted and under review
2008/2009

In and Out Burger (Yahoo!)
Restaurant
Iron Point Rd., E. Bidwell St., & Placerville Rd.
West of Costco
Plans in for Building Plan Review
2008/2009

Kaiser Permanente Hospital
Medical offices, surgery center, 50 acre medical campus
Iron Point Rd. and Broadstone Pkwy.
Next to Palladio Site
Ambulatory Center under construction
Fall 2008

Mercury Insurance Group
104 Woodmere Road
Application to be submitted
Early 2009

Stay Bridge Suites
122 Units, 4 Story Hotel
Cavitt Drive
(Opposite Costco)
Building Plans submitted and under review
2009

Wal-Mart
Glenn Dr./Riley St.
Application for remodeling & expansion pending
Late 2009/2010

Whole Foods
Grocery
Palladio (Iron Point Road & E. Bidwell Street)
Plans in for Building Plan Review
Mid-2009
* Opening dates are estimates. Contact the business directly to confirm actual opening dates.

Folsom Roads Closed Sunday Sept 14

Cosed for the big bike race. See here:
http://www.folsom.ca.us/news/displaynews.asp?NewsID=306&targetid=1

Bets are on no mortgage rate hike this week.

Economists rejoice! here is some background data on possible interest rate movement this week - courtesy of Steve McGirr at Verdeo Funding....

Mortgage Bonds are trading lower, but improved from their worst levels, in response to hot consumer inflation readings, delivered this morning via the Personal Consumption Expenditure (PCE) data. The headline PCE number is on fire, showing overall inflation climbing 0.8% for June - the highest jump in 27 years - and left the year-over-year headline reading at a beefy 4.1%. The Core PCE, which excludes food and energy, jumped 0.3% in June, which left the year-over-year Core PCE at a heated 2.3%. This is up from last month's reading of 2.1% and above the Fed's comfort zone of 1 - 2%. Other components of the report, Personal Income and Spending, were reported near expectations and garnered little attention, especially in light of the hot inflation readings. These stubbornly high consumer inflation readings continue to apply pressure on the Fed, which must weigh future monetary policy decisions amidst a sluggish economy and weak labor market.
Speaking of the Fed and monetary policy, the Fed is meeting as we speak, and tomorrow at 2:15pm ET will announce their interest rate decision and policy statement. We expect the Fed to keep the Fed Funds Rate rate at 2.0% for now, although we expect dissention amongst the voting members - inflation hawks like Philadelphia Fed President Charlie Plosser will likely call for a rate hike to fight inflation. Currently, the Fed Fund Futures suggest a 93% probability there will be no change in rates, and a 7% probability of a 25bp rate hike.
Fundamentally, inflation is pressuring Mortgage Bonds lower, and technically, a heavy layer of resistance is also keeping a lid on any advance. For now, we can try and be patient and see if Bonds can further recover from their earlier losses, especially since we have a cushion via some positive changes from 10am.

For detailed real estate market information for the Sacramento region please visit www.HotFolsomHomes.com

Financial Title Closing Doors

The word on the street this morning is the Financial Title Company, part of the Mercury Companies is closing it's doors in northern California today. Financial Title's sister company Alliance Title closed their doors in late 2007.

Folsom Energy Saving Homes are Here

Going Green is sweeping the country, and here in Folsom SMUD is leading the way by participating in building what is being dubbed "The Greenest House in the Country"

To drive up to the three- bedroom, two-bath bungalow being assembled in a historic residential neighborhood near downtown Folsom, you'd never suspect it's anything monumental.
But in the 600 block of Mormon Street, Folsom builder Robert Walter and the Sacramento Municipal Utility District are building what both call one of the most energy-efficient homes being constructed in the country.

The ambition is lofty. But a more practical award awaits the eventual buyer: a combined $24 or so a month for gas and electricity bills.

For the full story visit http://http//www.sacbee.com/103/story/992967.html

For more information on Green Building Standards contact us at: mailto:jWerolin@GoLyon.com

Graph: Tri County Inventory for homes under $200,000

Press Release from Lyon Real Estate, ranked as the best real estate company in the Sacramento region...

“For those relying on closed sales figures from the County Recorders Office, standing inventory for homes $750,000+ is ranging from 2 years in Sacramento and up to 5 years in El Dorado County; dismal by anyone’s definition,” said Michael Lyon, CEO of Lyon Real Estate. “Yet pended sales have cut those inventories in half, most likely a result of sellers dropping their prices as much as 30%.
For homes below $200,000 it’s a different story (See the graph above). We are seeing high inventory levels not seen since the mid 90’s: 24% of homes pending sale in the Four County region are under $200,000. Prices have dropped to an average of $125 per square foot (psf), with some homes selling for under $100 psf. In this price range, you will find yourself competing with 5 or more bona-fide offers within days of the home coming on the market. FHA loan limits are up to $580,000 with a 3% down payment - no maximum income levels and no credit scores required equates to a modern day gold rush of investors and first time home buyers. It has become evident that the bottom of the market for homes under $200,000 is near but for homes over $750,000, it’s still far off. Exceptions still remain homes close to the major job centers.”