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With F.H.A. Help, Easy Loans in Expensive Areas

Nov 20, 2009 | No Comments | Sean Mills

SAN FRANCISCO — In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston.

Policy changes in insurance, while introduced on a temporary basis, are becoming so popular that they could prove difficult to undo.

Back to Business
Risky IncentivesThis series examines the battles taking place to reshape [...]

SAN FRANCISCO — In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston.

Policy changes in insurance, while introduced on a temporary basis, are becoming so popular that they could prove difficult to undo.

Back to Business

Risky IncentivesThis series examines the battles taking place to reshape the financial industry.

Read More » »

The new faces of day labor

Nov 10, 2009 | No Comments | Sean Mills

The new faces of day labor
U.S. citizens are joining immigrants in store parking lots

It sounds like a George Lopez joke.
“Times are so bad that I saw an Anglo day laborer standing outside Home Depot the other day.”
Except it’s true.
In the latest sign of the Las Vegas Valley’s economic free fall, U.S. citizens are starting to show up [...]

The new faces of day labor

U.S. citizens are joining immigrants in store parking lots

Image

It sounds like a George Lopez joke.

“Times are so bad that I saw an Anglo day laborer standing outside Home Depot the other day.”

Except it’s true.

In the latest sign of the Las Vegas Valley’s economic free fall, U.S. citizens are starting to show up in the early mornings outside home improvement stores and plant nurseries across the Las Vegas Valley, jostling with illegal immigrants for a shot at a few hours of work.

Experts say the slow-starting but seemingly inexorable trend is occurring nationwide.

“It’s the equivalent of selling apples in the Great Depression,” said Harley Shaiken, chairman of the Center for Latin American studies at the University of California, Berkeley.

But it is not only a sign of the times, they add. If the numbers of citizens among the day laborers in cities across the country continue to grow, it’s likely to increase the ire of followers of TV host Lou Dobbs and others who will see illegal immigrants as stealing food off the tables of the nation’s native-born or naturalized poor.

Or, it may flip certain canards upside down in the immigration debate, easing tensions in some communities.

In the Las Vegas Valley, where the most recent unemployment rate was 13.9 percent, one face of this phenomenon is Ken Buchanan. The 50-year-old describes himself as a “food and beverage” guy, most recently working for four years at Renata’s Sunset Lanes casino and, before that, 30 years in a string of restaurants, hotels and casinos here and in his birthplace, Chicago.

But in 2006 Renata’s closed for remodeling. When the casino reopened as Wildfire, the management did not rehire Buchanan, he said.

In the months that followed, Buchanan discovered the difficulty of seeking work in his fifth decade, eventually winding up at Green Valley Car Wash, where he stayed for about two years, he said.

The banks foreclosed on the house he was renting. In the attempt to grab his things two steps ahead of the constable, he wound up missing work. He lost his job. He became homeless.

A Hispanic man Buchanan met in Renata’s sports book told him he had picked up work standing outside the Home Depot on Pecos Road at Patrick Lane. One July day, Buchanan gave it a try. At first, he got nothing but sunburn. But then he started to get work. Now he’s at the Home Depot six days most weeks.

Pablo Alvarado, executive director of the Los Angeles-based National Day Laborer Organizing Network, said he has been seeing the same thing elsewhere. “It’s happening, though still not in massive numbers,” Alvarado said. In the past six months or so, he has heard of “americanos” on the street corners and parking lots of Silver Spring, Md., Long Island, N.Y., and Southern California locations.

“It’s just beginning,” he said. “But I think it’s only going to increase.”

A recent morning’s swing through the valley produced reports of the same phenomenon. At Star Nursery on Cheyenne Road west of Tenaya Way, Nicolas stood shivering under a hooded sweatshirt, hoping a car or pickup would stop. The Mexican immigrant said he had seen a couple of “white guys” showing up recently, though not on the blustery cold days last week.

At Home Depot on Decatur Boulevard north of Tropicana Avenue, Jose said the same thing, adding that “it’s never more than three or four, but they’re coming out.”

Farther south, in front of Moon Valley Nursery on Eastern Avenue, Israel said a couple of “americanos” — white and black, he added — have come out for work in recent months. “But they tend to stay only a few days.”

As a salesman at Moon Valley, Mike Fugitt’s job includes making sure the laborers don’t come into the nursery’s parking lot, because their presence draws complaints from some customers. In the past three months or so, he said, more of those laborers have been telling him, “But I’m an American.” That includes some Hispanics, he added. “But I treat them all the same; they can’t be trespassing,” he said.

Workers at all the sites said the presence of the americanos hasn’t made work scarcer or produced any conflict. Some suggested that people hiring day laborers prefer Hispanics anyway, because of their reputation as hard workers.

Shaiken said shaking up the mix at day labor sites may eventually produce conflict in the greater society. “It essentially shreds the argument that Americans don’t want certain jobs,” he said.

In the current economy, he added, “we’re almost sure to see die-hard opponents of illegal immigrants seize on the fact that we have legal workers in day labor markets,” heating an already-inflamed debate.

In the longer term, it may also lead to a more rigorous analysis of future labor markets, including revised estimates of how many immigrants would be needed under a guest worker program, as proposed in recent congressional bills.

At the same time, Shaiken said, the issue won’t become central to the debate before Congress over what is known as comprehensive reform, including a pathway for legalizing millions of workers. “The point is, do we really want a labor market with day labor work as a career path? It’s more a commentary on the economy right now,” he said.

Although Alvarado allowed that the change in day labor sites was an undeniable sign of the withering economy, he also sees a “beautiful irony” in U.S. citizens seeking work as day laborers.

That’s because his organization has defended the free-speech rights of day laborers in at least 10 court cases over more than a decade. Up to now, courts have ruled in favor of the laborers.

“We always knew (these cases) would be useful not only for immigrants, but also for U.S. citizens,” Alvarado said. “We knew there would be a time when the economy would reach this point, and they also would be looking for work this way.”

Buchanan likes to wear a Cubs or White Sox cap as a sign of his Chicago heritage when he stands with one or two Hispanic laborers about 20 yards south of a larger crowd. He said he has gone through an education of sorts in the past four months. He has always worked around Hispanics in restaurants, hotels and casinos, but now he understands the issue of immigration from up close.

Read More » »

Homes: About to get much cheaper

Oct 21, 2009 | No Comments | Sean Mills

(Yahoo) 
If you thought home prices were bottoming out, you may be wrong. They’re expected to head a lot lower.
Home values are predicted to drop in 342 out of 381 markets during the next year, according to a new forecast of real estate prices.
Overall, the national median home price is predicted to drop 11.3% by June [...]

(Yahoo) 

If you thought home prices were bottoming out, you may be wrong. They’re expected to head a lot lower.

Home values are predicted to drop in 342 out of 381 markets during the next year, according to a new forecast of real estate prices.

Overall, the national median home price is predicted to drop 11.3% by June 30, 2010, according to Fiserv, a financial information and analysis firm. For the following year, the firm anticipates some stabilization with prices rising 3.6%.

In the past, Fiserv anticipated the rapid decline in home-sale prices over the past few years — though it underestimated the scope.

Mark Zandi, chief economist with Moody’s Economy.com, agreed with Fiserv’s current assessments. “I think more price declines are coming because the foreclosure crisis is not over,” he said.

In fact, those areas with high concentrations of foreclosure sales will experience the steepest drops, according to Fiserv. Miami, for example, is expected to be the biggest loser. Prices are forecast to plunge 29.9% by next June — after having already fallen a whopping 48% during the past three years.

Read More » »

Median price of homes sold in Peoria drops 27.3%

Oct 19, 2009 | No Comments | Sean Mills

This article is for Jarrett and Tom although I am sure you have seen this information already.-Sean
Source Article
Peoria saw a 27.3 percent drop in the median price of homes sold in the first eight months of 2009 compared with 2008.
The median price on new and

This article is for Jarrett and Tom although I am sure you have seen this information already.-Sean

Source Article

Peoria saw a 27.3 percent drop in the median price of homes sold in the first eight months of 2009 compared with 2008.

The median price on new and online drugs no prescription TEXT-DECORATION: underline !important” onclick=”adlinkMouseClick(event,this,0);” onmouseover=”adlinkMouseOver(event,this,0);” onmouseout=”adlinkMouseOut(event,this,0);” href=”#” target=”_top”>resale homes sold was $172,950, according to The Arizona Republic’s analysis of Valley home values between Jan. 1 and Aug. 31.

At the peak of the Valley housing bubble in 2006, the median price of homes sold in Peoria was $330,789.

Peoria this year escaped the more dramatic downturns seen in neighboring cities: El Mirage had a 42 percent decline in the median price of homes sold and Glendale saw a 40.6 percent dip.

But pockets of Peoria have fared better than others, largely driven by the high number of bank-owned homes

Southern Peoria’s 85345 ZIP code saw a 38.7 percent decline in median resale price. About 73 percent of all sales in the area involved foreclosures.

The median price on foreclosed homes in the area was $85,000 compared with nearly $92,000 for traditional resales.

Comparatively, northern Peoria fared better.

In the 85383 ZIP code, just less than half of 816 resales involved foreclosed homes.

Home buyers paid a median price of $235,000, a 22.3 percent decline from the median price of last year’s resales.

Although 2009 has been another year of double-digit declines in home values, area Realtors say they are heartened to see more properties moving faster, particularly in the $100,000 price range. In that lower range, they are seeing first-time home buyers lured into the market by lower prices and the $8,000 tax credit, as well as investors returning to buy up cheap properties.

“There was pent-up demand from people who wanted to buy two years ago, but couldn’t afford it,” said ReMax Realtor Nate Martinez.

The result has been multiple offers for many of the homes in this price range, which is slowly inching values up again.

Some would say 2009 saw the bottom of the housing market.

Foreclosures were down in the past two months, and home sales are 50 percent ahead of last year’s pace.

“There’s hope. I don’t think last year they had any hope,” Martinez said.

But others caution that recovery will be slow, and the number of foreclosures still to come will largely shape the recovery.

“We’re not done with foreclosures. But how much and how deep will be the question,” said Linda Booker with Realty Executives.

Lunacy in Las Vegas Housing

Oct 14, 2009 | No Comments | Sean Mills

Just when you think you’ve heard it all in today’s housing market, along comes a story that takes all those statistics and all those monthly foreclosure reports and all that testimony to Congress and just drop kicks them all out the window.
I’m going to tell you about a nice young woman named Katie. Last week [...]

Just when you think you’ve heard it all in today’s housing market, along comes a story that takes all those statistics and all those monthly foreclosure reports and all that testimony to Congress and just drop kicks them all out the window.

I’m going to tell you about a nice young woman named Katie. Last week Katie tried to buy a house in Las Vegas, and got a lesson in real estate reality that she will never forget.

Let’s back up a bit for some background. Katie and her husband live in Maryland and are about to have their first child. Both work, but Katie’s husband, who has a very solid government job, is being transferred to Vegas. And please note, the government is paying all his moving expenses, Buy Xenical Online including Realtor and closing costs. Both he and Katie have credit scores right around 800.

So off the two went to Vegas, thinking they were in the right place at the right time.

The foreclosure capital of America, Vegas home prices are down more than 50 percent from their peak in 2006. The median price of a home there is $138,000, but, interestingly, the inventory is down to a less than 3-month supply. Compare that to the national inventory, now at an 8.5 month supply. Despite the low supply, prices are not recovering quickly because the sales are all by banks, looking to unload properties quickly.

But back to Katie. Her Realtor, who is also an old friend, emailed Katie the following warnings before her arrival on the Vegas strip:

- This market is crazy and many things are just not going to make any sense.

- I can guarantee you 99.99% of the listings emailed to you will no longer be available by the time you get here.

- Properties are selling in the blink of an eye.

- Properties are getting multiple offers within a few days of being on the market, the most offers I’ve heard a house had recently was 44 offers (I know, crazy).

- This market is crazy and many things are just not going to make any sense.

- 40% of all transactions are cash purchases, which makes it harder for the buyers who are financing to get their offers accepted.

- We have 1/2 the inventory we had a year ago and 4 times as many buyers as we did a year ago.

- Chances are we will have to submit several offers to have the chance of getting 1 accepted.

- This market is crazy and many things are just not going to make any sense.

- You will probably leave not knowing if you have a house or not because banks take 2 to 3 weeks to respond, because this market is crazy… you know the rest.

I’m guessing you noted the crazy part. Katie is looking in the $150-200,000 price range. Despite the warnings, Katie was completely unprepared for what she found. In seven days, she saw 50 homes. All but one were foreclosures.

On the first day, Katie and her husband saw 13 homes.

Only three were anywhere close to move-in condition, despite the fact that all of the homes were built in 2005 or later. All were foreclosed properties. “People find out a year before they’re ever kicked out, so what do they do for that year?” says Katie. “Completely destroy their homes.”

I know we’ve already heard about this, as had Katie, but the destruction was even beyond her expectations. “There’s no cleaning that would help.” There was dirt rubbed on the walls, graffiti, holes in the walls and garbage deposited inside the holes. The smell? “I couldn’t get past it.” Obviously there was no hardware on the doors and no appliances, kitchen cabinets, stovetops…whatever could go went. 75 percent of the homes she went into were an instant no.

But here’s the crazy part:

“We went to a home that had been on the market for one day, and the key was stolen out of the lock box. Our Realtor said immediately, ‘You want this home.’ She told us another Realtor had stolen the key because they wanted their client to get it. So what did my Realtor do? She broke in. And sure enough this was the home we fell in love with. It was on for $132,000 so we decided to be really aggressive and offered $160,000, plus we had government backing on our loan. Well our Realtor called that night and said, ‘You’re not going to get the home. They got 30 offers and half are cash offers, so the bank is not even going to look at you.’ The banks just want the cash to unload these places.”

Finally, on day 7 of looking, and after having 7 offers ignored by the banks (who owned all the homes), the Realtor called Katie with “a gold mine.” Yes, an owner-occupied, regular home. A rare non-foreclosure. They went immediately and put in an offer. The owner claims to like them, but she ended up with 10 offers and is still mulling.

Ironically, in a market still flooding with new foreclosed properties every day, at the end of their week Katie and her husband met with a local builder. “We know our money will not get us as much, but they’re giving away the granite and hardwoods for free.” It’s not in their ideal location, and they wouldn’t be able to move in until March, the month their first baby is due. But at least they don’t have to deal with the banks, the filth and the competition.

Oh, and by the way, a fun factoid on Katie’s Realtor: She bought her brand new home in 2005 for $240,000. According to the comps she runs daily, she says it’s now worth between $90-110,000. So in January she decided to stop paying her mortgage. No financial hardship, she just figured she was throwing money away. The bank hasn’t gotten to her yet, so she’s just been living there for free. At some point, she knows, her bank will foreclose, but she’s fine with that. She says she’ll do far better financially renting for a while.

Source Article

Tenants and Foreclosure

Oct 13, 2009 | No Comments | Sean Mills

Look alive all you people as we have new tenant/foreclosure laws thanks to our governor, Arnold.-Sean

New Legislation Signed
This information is for California tenants only. Governor Schwarzenegger signed two pieces (yes, two!) pieces of legislation benefiting California tenants. The first, SB 290 (sponsored by Mark Leno) makes the 60-days’ notice requirement for tenant evictions permanent. This [...]

Look alive all you people as we have new tenant/foreclosure laws thanks to our governor, Arnold.-Sean

New Legislation Signed

This information is for California tenants only. Governor Schwarzenegger signed two pieces (yes, two!) pieces of legislation benefiting California tenants. The first, SB 290 (sponsored by Mark Leno) makes the 60-days’ notice requirement for tenant evictions permanent. This means that any tenant in the state who has lived in her rental for one year or more cannot be evicted with less than 60-days’ get prescription drugs without prescription notice in “no cause” evictions. And it means that tenant groups don’t have to mobilize every couple of years to renew the legislation. However, this does not affect tenants protected by local “just cause” ordinances; those tenants cannot be evicted without cause.
Source Article

The second bill, SB 120, sponsored by Alan Lowenthal, protects tenants in foreclosed or soon-to-be-foreclosed properties against utility shutoffs when the landlord or lender fails to pay utility bills. In particular, tenants in single-family homes now have the same protection as tenants in multi-family units. Utility companies (gas, electric, water, heat) are now required to give tenants notice that the utility is to be cut off for nonpayment, and to provide a procedure for the tenant or tenants to establish a payment account without having to pay the former landlord’s arrearages. Tenants in single-family homes in outlying communities were often forced to pay the former landlord’s water bill to keep the water on. (Sacramento Suburban Water was notorious for this.) No longer.

It also allows tenants who pay the bills, when these costs have been included in the rent, to either deduct the cost from their rent payments or sue the landlord for the cost of establishing service or paying the bills. And it prohibits utility companies from requiring large deposits if the tenant can show that she pays her rent on time. (Utility companies were frequently requiring both payment of the arrearages and a large deposit to keep utility service.) Utility services are required to establish and publicize procedures for tenants to deal with these situations; notice of those procedures should be delivered along with any shutoff notice. We would hope that they also publicize them in their newsletters and on their websites as well.

A Case Study of Distress California Housing: Sacramento County.

Oct 13, 2009 | No Comments | Sean Mills

The Sacramento Association of Realtors provides excellent data on real estate market trends for Sacramento County.  It is unfortunate that we don’t have comprehensive data like this for the state of California housing.  Yet this data is helpful because it reflects similar outcomes of other California counties like Riverside or San Bernardino.  When we examine [...]

The Sacramento Association of Realtors provides excellent data on real estate market trends for Sacramento County.  It is unfortunate that we don’t have comprehensive data like this for the state of California housing.  Yet this data is helpful because it reflects similar outcomes of other California counties like Riverside or San Bernardino.  When we examine the data, what we find is a market dominated by distress sales and lower priced conventional sales:

sacramento home sales

This is excellent information.  The number of closed escrows fell in the last data order prescription drugs online report but not by much.  The big trend is with REO and Short Sale information.  Short sales in more mid to upper tier markets in California have been largely absent.  But in this data set they make up a good portion of sales.  However, the big market mover is the REO subset making up nearly 45 percent of sales.  Months of inventory is low at 3.2 months and the median price of sales is $183,000.  Last year at this point when prices were already depressed the median price was $194,950.

The mean is at $207,199 so the bulk of home sales are falling within this range and if we look at the mode, this is confirmed with the $200k to $249k range.  So what is happening is we have a market that does have brisk sales but only because of lower prices and a glut of REO inventory.  If we look at the overall sales count for the year, sales have increased:

year sales

Now compare this to last year:

last year sales

It is a simple equation.  Home sales have jumped up 12.2 percent while the median price has fallen 22.2 percent.  Cheaper homes move inventory.  If we dig into the financing data what we find is indicative of many distressed California markets:

financing details

The majority of sales are FHA insured loans and cash buyers.  That is, we have a large number of first time home buyers most likely lured by the $8,000 tax credit and many cash investors probably looking to buy cash flow properties.

It is great to have information like this because it really tells us a lot about a housing market.  It is unfortunate we don’t have data like this for the state of California.

Source Article.

Valley landlords face new reality

Oct 12, 2009 | No Comments | Sean Mills

Renting out homes has long been a profitable enterprise for many Valley landlords.
The business model was simple: Buy a home. Rent the home for at least the monthly mortgage payment. And when you decide to sell the home, enjoy the Valley’s reliable appreciation in home prices.
That model fell apart amid the housing-market crash. Landlords, like [...]

Renting out homes has long been a profitable enterprise for many Valley landlords.

The business model was simple: Buy a home. Rent the home for at least the monthly mortgage payment. And when you decide to sell the home, enjoy the Valley’s reliable appreciation in home prices.

That model fell apart amid the housing-market crash. Landlords, like everyone else, saw home values plunge. Rents fell. Many landlords who bought when prices were high now struggle to charge tenants enough to cover their mortgage payments. And this year, as foreclosures mounted, homes were snapped up by investors and turned into inexpensive rentals.

Suddenly, the landlord business has changed. Competition for tenants is increasing as more homes become rentals. Apartment owners are lowering rents, offering free utilities or a month’s free rent, eliminating security deposits and credit checks.

This is the third in a periodic Republic series on how different segments of the housing industry are reinventing themselves to work toward a recovery. The new reality for Valley landlords is still taking shape. Longtime landlords slammed by the housing crash find they have to settle for less income, take more risks on tenants’ reliability and try to keep their properties out of foreclosure. New landlords see opportunity in the low housing prices.

Read More » »

Tax assessors cry foul over property transfers

Oct 12, 2009 | No Comments | Sean Mills

This, unfortunately, I do is a good step for a property owner.  In the past I have seen the state and local municipalities step up and re-assess a building when a partner was bought out thereby raising our property tax basis, after all it is a transfer albeit to the remaining partners.  We were not [...]

This, unfortunately, I do is a good step for a property owner.  In the past I have seen the state and local municipalities step up and re-assess a building when a partner was bought out thereby raising our property tax basis, after all it is a transfer albeit to the remaining partners.  We were not happy as the remaining partners did not receive the benefit the state did.  Live by the sword die by the sword.  California take notice this is the wave of tactics we will see.-Sean

SACRAMENTO – County assessors are increasingly worried that the historic drop in property values in the Inland area and around the state will turn out to be more than just a temporary blow to government coffers.

Millions of properties statewide have been temporarily reassessed to reflect their lower market value. Under state law, property owners will pay reduced taxes until the market recovers and the property returns to its base value.

But assessors and other tax officials say there are signs that some property owners are going a step further: using back-and-forth ownership transfers to trigger a property reassessment and lock in a much lower level of property taxes.

Read More » »

Will California become America’s first failed state?

Oct 6, 2009 | No Comments | Sean Mills

It always is easier to look from the outside and see with such clarity, the old “your life my way.”  Were down but we are not out.  Even our friends in the UK are getting in on the debate.-Sean
Los Angeles, 2009: California may be the eighth largest economy in the world, but its state government [...]

It always is easier to look from the outside and see with such clarity, the old “your life my way.”  Were down but we are not out.  Even our friends in the UK are getting in on the debate.-Sean

Los Angeles, 2009: California may be the eighth largest economy in the world, but its state government is issuing IOUs, unemployment is at its highest in 70 years, and teachers are on hunger strike. So what has gone so catastrophically wrong?

Will California become America’s first failed state?

Los Angeles, 2009: California may be the eighth largest economy in the world, but its state government is issuing IOUs, unemployment is at its highest in 70 years, and teachers are on hunger strike. So what has gone so catastrophically wrong?

Patients without medical insurance wait for treatment in the Forum, a music arena in Inglewood, Los Angeles. The 1,500 free places were filled by 4am. Photograph: John Moore/Getty Images

California has a special place in the American psyche. It is the Golden State: a playground of the rich and famous with perfect weather. It symbolises a lifestyle of sunshine, swimming pools and the Hollywood dream factory.

Read More » »

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