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The State of South Placer County Real Estate
2011 – Year In Review
Like Sacramento County, South Placer County real estate lost some value in 2011. Unlike Sacramento County, it wasn’t as stable a year for values in South Placer County. The reason for this could be that, with values being much higher in South Placer, South Placer County real estate had/has further to fall.
While the value losses weren’t much, you see a lot of bouncing around from city to city with a few exceptions. Where there is a lot of bouncing around, a clear direction of value is difficult to ascertain.
We’re seeing that properties aren’t selling for what they are appraising for unless they are highly desirable. Most every closing I’ve had has been this way. Properties listed at the appraised value aren’t selling for that price nor are they drawing offers at that price, generally speaking. (there are always exceptions)
Foreclosures
The total amount of foreclosure filings has been relatively consistent throughout the year with a high of 459 Notices of Default filed in August and low of 223 in December with a median monthly foreclosure filing of 322 homes. Filings of the Notice of Trustee’s Sale has been steadily increasing since September. The average time to the foreclosure sale once a Notice of Default has been filed in 2011 was 283 days trending down from October to a low in December of 211 days, over double the number of days provided for by California state law.
I expect the time from the Notice of Default to the trustees’ sale to decrease as we progress further into 2012.
Granite Bay Real Estate
Values going down in Granite Bay isn’t really a surprise to me. Like Folsom, Granite Bay home values have been relatively resilient since the downturn began but as we near the bottom of the market, it appears that the overall trend for home values in Granite Bay real estate is downward.
Since July, values have dropped 11% and that’s with an substantial uptick in values in December. As of December, the total number of homes for sale is 2.7 months are the current pace of sales.
Lincoln Real Estate
The home values in Lincoln bounced up and down all of 2011 but did trend down. The high sales price was in $284K in January and a low sales price in October of $216K, an almost 24% decrease in values.
At the current pace of sales in Lincoln real estate, there is about 1.9 months of inventory available for sale and believe it or not, that isn’t the low! In September, there was about 1.3 months of available homes for sale yet prices are continuing to trend downward. Historically, this makes no sense but it is what it is.
Loomis Real Estate
Loomis real estate values have bounced around quite a bit but in a good way. The bouncing around in Loomis can be attributed to one or two higher end properties selling in any given month. You have a high peak in January then a leveling off for 5 months then a high peak in July and a leveling off for 4 months to a peak again in December. Aside from those peaks, values were very steady all year long.
Unlike the rest of the region, the current inventory of homes for sale at the current pace of sale is about 7.5 months. (!) That’s the highest level I’ve seen anywhere in the region.
Rocklin Real Estate
Home values in Rocklin real estate were steady in 2011. Aside from a bit of jumping around with a low of $265K in March, values have been in a very narrow range from $321K to $279K with an average sales price of $292,580.
The total number of homes available for sale is 1.9 months at the current pace of sales. This is consistent with most other areas of the Sacramento region.
Roseville Real Estate
Roseville real estate has also been very steady aside from a dip in December of $257K. Other than that, values were between $291K to $263K with an average of $276,580 for 2011. This graph includes all zip codes in Roseville.
Just like Rocklin, Roseville has just 1.9 months of available homes for sale at the current pace of sales.
Summary
South Placer County, just like the rest of the region, has had a steady year of sales and a steady year of values. While, the overall trend is downward it is nominal in comparison to the 2007 through 2009 time frame.
Most economists are saying that this could be the year for home values to stabilize aka the bottom of the market. We’ll see how things fare. In my opinion, if the bottom of the market is this year it will be either in the first quarter of the year or the 4th quarter of the year. My impression is if the bottom of the market is this year, it will be in the first quarter but that’s just my feel of it.
If you’re looking for a home to purchase or sell, please call, text, email or simply fill out the form below and I’ll get back to you promptly.
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The State of Sacramento Real Estate
2011 Year In Review – Sacramento County
I thought it would be a worthwhile exercise to pull up some statistical information and see how values as well as sales fared in 2011. Generally speaking, we see a lot of national news on values but that is a composite number of all regions and doesn’t apply anywhere specifically.
While that may sound obvious, many people hang their hat on these numbers when in reality they’re meaningless and at best irrelevant. Because real estate values tend to be hyper local, the only relevant information resides with local industry professionals.
All of the information below has been pulled directly from the Metrolist multiple listing service that serves the entire Sacramento region and covers single family homes only. (Thank you to Metrolist, Inc. for all of the fancy graphs)
Summary
Overall, most of the data shows that the bulk of the Sacramento region has lost anywhere from 2% to 8% of it’s value roughly speaking. While that may or may not be 100% correct, what I think is most striking is the “leveling” off of prices region wide with a few exceptions.
Depending on the month, values were up and down all year long. As the graphs will show, one month values were up and the next a little higher then a little down the month after that.
How the multiple listing service figures the percentage of decline or advance is by comparing the beginning month to the ending month in any report inquiry. If the month in the beginning of the report was an up and the month in the end was down, this will give an over estimation of a decline in value with little compensation to what happened in between these two points.
I don’t believe this to be an entirely accurate view of the market so I’ve included all the graphs for each area in this summary of 2011 home values.
Citrus Heights Home Sales – Both Zip Codes
The average sales price bounced around from a high of $169K in January of 2011 to a low of $147K in April and July. The yearly average was $156K. Not a lot of variance in prices here.
Fair Oaks Home Sales
Fair Oaks home values bounced around a little more than other communities in our region. The high for the year was in January at $303K and the low in September at $223K. There was a substantial dip in values started in May at $269K and gradually slid down to $223K in September. The average sales price last year as a whole was $253K.
Folsom Home Sales
The Folsom market has been very resilient throughout the region’s housing downturn. The trend in Folsom all year was consistently down but largely level. The high mark was in April at $409K and the low coming in August at $361K. The average sale price in Folsom was $388K.
North Natomas Home Sales
The North Natomas market is one that has bounced around a lot over the last 13 months. The high at $242K in January and the low in September at $203K. Like a lot of areas of the region, since September/October 2011, values have been on the rise. The average sales price in 2011 was $219K.
Orangevale Home Sales
The home values in Orangevale have also trended down with a precipitous fall from July to November of almost 20%. The average sales price in Orangevale for 2011 was $203K.
Sacramento Home Sales
Sacramento, was largely unchanged throughout 2011. Besides a blip July and August, values were very stable all year long. In fact, the average sales price in January 2011 was the same as the average sales price in January 2009. Not surprisingly, the average sales price over the entire year was $166K. Very level home values without much in declines.
Availability of Homes For Sale
All of 2011 was plagued by an ever dwindling amount of available homes for sale in the Sacramento real estate market. As the graph indicates, from January and February forward, the total amount of homes for sale decreased significantly. Sales have been consistent but not barn burning so it’s not that the pace of sales has increased beyond the point where the homes coming on the market can’t keep up.
Since the fall of 2008, there have been rumors that there will be a flood of foreclosures coming on the market at anytime..BE READY!! It’s all turned out to be horse hockey. Move up buyers are largely stuck cause they are underwater and can’t sell to move up. Those who do sell short have to wait until their credit clears up before than can make a move. These issues combined have greatly reduced the total number of homes for sale in the region.
Please keep in mind that every neighborhood is different within each zip code in the region. What might hold true for one area may not for the next. If you have questions about the value of your home in your neighborhood, please let me know. I’ll be happy to calculate the value of your home and present it to you in a report format.
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How To Get Your Foreclosure Sale Postponed
Don’t Wait Until It’s Too Late
So you’ve received a “Notice of Default” from the county court system. Other than the filing date and some legal ease, there isn’t much to it.
While it does mention that if your mortgage isn’t brought current, your home could be sold at a trustees’ sale. No sale date is included in the notice.
So many people have received these notices and because they are receiving an overwhelming amount of mail regarding their deficiency, it hasn’t had the impact that it should.
That’s what happened to a client in Lincoln. They had received a “Notice of Default” but didn’t understand what it was and what it meant.
The lender had been barraging them with paper, people had come by to check on the home and occupancy but as far as they knew, they were working on a loan modification. As far as they knew, like their friends who had gone through the same thing, they still had another year left before they needed to be concerned about moving if the loan modification failed.
They thought..
“…In 3 Weeks, Your Home Will Be Sold At A Trustees’ Sale…”
I got a call in early October while on vacation with my family at Disneyland. The person on the other end of the phone was upset, that much was clear. She had just received a “Notice of Trustees’ Sale” taped to her front door.
This notice said that in 3 weeks, her home would be sold to the highest bidder at a trustees’ sale on the courthouse steps in Roseville. She was shocked to receive this notice. To her knowledge, she hadn’t been notified that her home would be auctioned off. She thought she would get more notice.
Not to mention that 3 weeks wasn’t enough time to find a home and move. She was beyond upset and looking for any help. Her lender could care less stating that she had an opportunity to make her mortgage current, hadn’t and now it was time for the bank to recoup what they could by forcing the sale of the home through the courts.
I told her that getting a trustees’ sale postponed with 3 weeks left was very difficult and only had a small probability of success. It’s possible but we’ve got to move fast to have the best chance.
I called my short sale negotiator, she got over to her home and got it listed. Fortunately, the seller already had all the paperwork together. All we needed to do was to get it listed and get an offer.
List Your Home In A Short Sale
The result?? After the hurry up, we managed to get the trustees’ sale postponed with only a few days left. We were very fortunate that the lender, OneWest formally known as IndyMac, was easy to work with.
With other lenders, it’s not easy to get a trustees’ sale postponed that quickly especially going into the slower winter sales months. We were able to get it done and extend the time this homeowner was able to stay in her house by over 2 months.
Generally, short sale approvals take longer but in this case it came in just 30 days. The seller now knows exactly when she needs to move and will have plenty of time to do it and will benefit financially from not going through foreclosure when it could have and was avoided.
Have You Received A Notice Of Default?
If you’ve received a “Notice of Default” and are facing foreclosure, your time is limited. Acting sooner than later will help us to get your sale date postponed and extend your time in your home by selling it in a short sale. It’s better for your future financial position giving you a myriad of options whereas going through the foreclosure process does not.
Short sales are being approved at a higher rate than ever before because it’s the best option for the seller and the lender. Give us a call, text, email or simply fill out the form below and we’ll call you promptly.
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Rocklin Home Sales Report – November 2011
Home Sales Steady
Homes sales in Rocklin real estate have been steady all year long. Seems that prices being relatively stable, so to speak, have maintained buyer interest which has resulted in homes sales keeping pace with month after month.
Rocklin real estate sales in the 95765 zip code have yet to dip under 40 home sales per month with only two months below 50 homes sold all year whereas the last 3 months of 2010, as indicated in the graph, were all below 40 sales per month. That’s encouraging.
Average Sales Price? It’s Like A Teeter Totter
If you look at the table, it reads that the average sales price dipped 4.3% over the last year but I don’t think that is entirely accurate. I don’t know how you can tell what prices are doing when they have been bouncing along all year long. Up then down then back up again. Seems like every 2 months it shoots up then comes back down the next month.
Over the last year, the average sales price has been a high of $339,000 and a low of $296,000 but both of those numbers are surrounded by lower values on the high end and higher values on the low end. To say prices have dropped 4.3% just doesn’t mean much when values are bouncing around like that. It can be safely said that home values may be declining slightly but how much is tough to estimate. This is a good thing.
Sales Are Good But Where Are The Homes To Sell?
The total number of homes for sale has been declining all year long. That’s my rendition of the proverbial broken record as I’ve been saying that constantly.
These numbers are a little easier to explain. There are several reasons why there are fewer homes available to sell.
1) Many mortgages in Rocklin real estate are dramatically underwater. This means, if you haven’t heard by now, that more is owed on them then they are worth. Why this is relevant is because people who live in them can’t move and if they do move, they are selling their homes in a short sale or the home is going to foreclosure.
If they sell short or go to foreclosure, they have to rent for at least 2 to 3 years before they can buy again. In either case, they aren’t moving up and putting their homes on the market.
2) Banks aren’t foreclosing in a timely manner and when they do, only a small portion of those homes are coming on the market. I spoke to a friend of mine today who has been living in his home without paying the mortgage for a year and a half. The bank hasn’t filed a notice of default on the home and he has gotten no calls from his lender about this issue.
Lenders are delaying the foreclosure process and metering homes out over a longer period of time so those distressed homes aren’t coming on the market either.
Being down to a month and a half of available homes to sell in Rocklin real estate is a very low.
Looking for a home in the Rocklin real estate market? Have a home to sell and are underwater on your mortgage? We here to help if you need a Realtor you can count on. Please call, text, email or simply fill out the form below and I’ll get back to you promptly.
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$25,000 Reasons To Sell Short
Your Lender Would Rather You Sell Short versus Letting Them Foreclose
There are many benefits to a homeowner who has received a Notice of Default to consider a short sale but what I heard yesterday from one of my clients takes the cake.
Recently, lenders have begun offering incentives to homeowners who are facing foreclosure by paying them to sell they’re homes in a short sale. The HAFA program, for instance, pays a homeowner $3000 if they qualify for the program.
My client has a friend who lives in Crocker Ranch in Roseville. For various reasons, she found herself in a situation where she needed to sell her home. In her contact with her lender, she learned that they would pay her $25,000 to sell her home short rather than go through the foreclosure process. Her lender is Chase however I don’t know who the investor was on her loan.
My assumption is that Chase is offering incentives on the mortgages that they own and not on those they only service.
There have been reports in the media that lenders would be providing incentives for homeowners to sell short but this is the first instance I’ve heard of this much being given to a homeowner.
The fact is it costs a lot of money for a lender to foreclose on a homeowner. Clearly, if you take this as an example, it costs more than $25,000 for this lender to foreclose.
The Top 5 Reasons To Short Sale
Obviously, there are more reasons to sell your home short especially if you’re facing foreclosure. Going through the foreclosure process isn’t fun. You lose control and may have to move on short notice not to mention the embarrassment, stigma and possible humiliation of foreclosure.
Here’s my top 5 reasons to sell your home short if you’re facing foreclosure:
1) No Deficiency Judgment - California Civil Code of Procedure 580e passed in July say that when lenders approve your short sale, they give up the right to sue for a deficiency. Not so with if they foreclose.
With a foreclosure, a lender in second position can come after you for the deficiency. If they agree to accept what the first mortgage is offering them in a short sale then they can’t come after the deficiency.
2) Purchasing Another Home – When you sell your home short, you can purchase another home in 2 to 4 years versus 5 to 7 years with a foreclosure. 
Current Fannie Mae/Freddie Mac guidelines view a short sale and the homeowners attempt to do whatever they can to make their situation better more favorably than if they go through foreclosure. Therefore, they homeowners to purchase another home in a shorter time frame if they sell short.
With Fannie Mae and Freddie Mac originating 80% to 90% of all mortgages, it’s a good thing, if you plan on purchasing another home, to sell your current home in a short sale versus going through the foreclosure.
3) It Costs You Nothing - All fees for the short sale are paid out of the proceeds of sale. The homeowner pays nothing.
4) You Avoid The Humiliation of Foreclosure - The foreclosure process is rough and can be very humiliating. From posting notices on your door to having to answer questions asked by bank representatives to investors coming to your door asking questions about the condition of your home..none of this is fun.
5) Credit Is Less Affected - While the credit score declination is similar to that of foreclosure, borrowers have found that they’re credit rating improves faster for a short sale than for a foreclosure.
The quicker recovery of your credit score will help you in all aspects of your life.
If you’ve received a notice of default, you’re facing the sale of your home 90 days and 2 or 3 weeks. Your time is limited and the sooner you contact us the better chance we have of helping you to avoid foreclosure.
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Short Sale Frequently Asked Questions
Get Answers To Your Tough Questions
I get calls every week from people who have received a notice of default asking what the process of a short sale is and what it entails. Most of these folks don’t understand that there will be a trustee’s sale on their home in a specific timeframe established by law.
There has been and always will be misconceptions especially in this information age. I have read articles online from “experts” who are saying things that aren’t entirely true and while they may be well meaning, this market is very different from markets of the past.
There are constantly changes to the process and some of these changes, most in fact, benefit the homeowner. At least one lender is offering $25,000 to $40,000 to their borrowers to sell their home short versus going through the foreclosure process. Does that make sense on the surface? No it doesn’t make much sense to anyone but it does point to one thing:
Selling your home in a short sale is a less expensive option for you and your lender.
If this weren’t the case, would lenders be paying homeowners to sell short? No they wouldn’t. As far as homeowners go, everything works in their favor if their lender/s approves the short sale. Approvals in short sales has never been higher.
So with that, here are the most frequently asked questions I’ve received from people who have received a Notice of Default about the short sale process.
1) “Can my lender take my assets?” – Your home is a secured asset. When you signed your loan documents, they clearly say that if you don’t make your payments, your lender will foreclose and take title to your home. Foreclosure isn’t like a bankruptcy where a judge determines whether or not you pass a “means test” to continue with your filing. If a homeowner stops making their payments, the lender will take the house.
2) “Do I have to have a hardship to be approved for a short sale?” – Short sales are being approved at a higher rate than ever before for a variety of reasons. How a “hardship” is defined has changed as well. Negotiators I’ve spoken with have even gone so far as to say that being underwater is reason enough to be approved for a short sale.
I represented a client last year in Loomis who had a rental home and the income to afford the payment on their homes. Bank of America approved their short sale based on the fact that their income had dropped in this economic downturn but clearly their income was enough to afford the payment.
I represented another client in Citrus Heights this year in the same situation. They could afford their payment but because their home was worth 65% less 
than what they owed, they chose to stop making their payments. We approached their lender with a short sale and they accepted it.
These are just a couple of instances I can cite where no real hardship existed per se. No divorce, no bankruptcy or job loss. Yet in these cases and many others, the short sale was approved.
Some Realtors say that you must have a serious hardship to be approved for a short sale and this has been the case in the past. That’s not what we’re seeing now.*
3) “When can I purchase another home?” – Current conventional financing requirements say that after a short sale you can obtain a loan for another home between 2 to 7 years depending on your loan to value, how your credit has been maintained and the circumstances surrounding your short sale. With FHA financing, it’s 3 years from completion date.
After a foreclosure, current conventional financing requirements are 7 years after the completion date unless there were extenuating circumstances where there are several time frames listed. For FHA financing, the waiting period is 3 years after the completion of the foreclosure.
FHA financing is generally more expensive than conventional financing so choosing to save up a 20% down payment will go along way toward you being qualified to purchase another home.
Then the question is…will you be hurt by purchasing in 2 or 3 years from now? All indicators are pointing to the real estate market bumping along the bottom with little, inconsistent or barely noticeable appreciation for the next several years.
If you purchased your home in 2006 vs. 2011, you will pay $333,000 more over the life of your loan for the average home sold in Rocklin. By purchasing another home 3 years from now, most likely you’ll be in a better financial position housing wise than anyone who purchased prior to 2009 and decided to keep their home.
4) “What will a short sale do to my credit?” – If you’re reading this, more than likely you’ve received a mailing from me saying that a notice of default has been filed against you by your lender. If a notice of default has been filed against you, you’ve already missed many months of payments. At this point, your credit has been degraded significantly and selling your home in a short sale may not do much more damage.
Generally, it’s common for someone with a 700 credit score to lose 150 to 200 points after a foreclosure or a short sale. Based on what our clients are seeing, however, if someone who has gone through a short sale makes an effort to maintain their credit rating, their score will improve a bit faster than someone in the same situation who has gone through a foreclosure.
5) “Can my lender sue me for the deficiency between what I owe and the amount they make from the short sale?” – If your lender or lenders approve your short sale, California Civil Code of Procedure 580e passed in January and an amendment July of this year say that your lender must accept what they make as payment in full and cannot come after you with a deficiency judgment.
If you’ve received a notice of default and you don’t intend on making your loan current and keeping your home, selling your home in a short sale is a better option for you. Please call, text, email or simply fill out the form below and we’ll get back to you promptly.
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Before considering a short sale or going through foreclosure, you want to go in with all eyes wide open. Please consult with qualified experts in the law, finances and taxation.
*Lenders have various guidelines in approving short sales. Every lender is different.
Have You Received A Notice of Default?
What To Expect
Receiving an NOD (notice of default) can send chills down the back of any homeowner. The NOD is the first stage of the home foreclosure process and if action isn’t taken it will result in the home being sold at a trustee’s sale on the courthouse steps of the county where the home is located.
If you’ve received an NOD, you’re generally more than 90 days late on your mortgage and owe upwards of $10,000 or more in back payments and fees to your lender. Coming up with this money considering homes in our area are worth far less that what is owed makes this an even more difficult pill to swallow.
If you happen to be one of the 5% of people who succeed in getting a loan modification, these fees will be added to your mortgage which increases what you owe to pay your home off.
The fact is many homeowners are making the decision to go through the foreclosure process rather than bring their mortgage current. It surprises me how many people choose foreclosure over selling their home through a short sale when it’s better for your credit and completely free to the homeowner.
If you do decide to go through foreclosure, here is a short list of what to expect:
None of this is a hayride a Bishop’s Pumpkin Patch, believe me.
1) After you’ve missed 3 months of payments or more, your lender can file a “Notice of Default” with the county court. In most cases, it’s taking longer than that. Recently, the time to file an NOD has gotten a little shorter.
2) After the notice of default has been filed, representatives from your lender will start showing up at your door asking if you’re still living there and checking on the condition of the home. This may even happen when you’re late on your payments and before the NOD is filed with the county.
3) Investors and bank representatives will start driving by the home, slowly, taking pictures checking on the condition of your home. This can be very embarrassing as your neighbors are noticing “something is going on”.
4) About 90 days after the notice of default has been filed, a “Notice of Trustee Sale” will be posted on your front door notifying you that in 3 weeks or so your 
home will be sold to the highest bidder at a foreclosure auction on the courthouse steps. I had a homeowner who didn’t understand the meaning of the NOD and called in a panic about receiving the “Notice of Trustee Sale”. Talk about stress.
5) The lender will set the minimum bid at the foreclosure sale and, there is a 65% chance it will be sold to a third party investor. If it sells to an investor, you’ll most likely get a “Notice of Eviction” which states that if you’re not out of the home in 3 days, you’ll face legal action. This is common for third party buyers.
6) If the property doesn’t sell at to a third party at the trustee sale, the bank will take it back and a Realtor representing the bank will show up at your door telling you that you’ll need to vacate the home or face legal action. In some cases, a homeowner can get “cash for keys” and in some cases not. It depends on the lender and you won’t know until it happens.
Going through the process of losing your home isn’t any fun. You feel guilty, stressed and possibly ashamed for what you’ve had to go through without having any control over the process. Also, with the credit hit you’ll take, it could be 5 to 7 years before you can purchase another home.
If you sell your home in a short sale, in 2 to 4 years you can purchase another home and that’s just one of the benefits to selling your home in a short sale. I’ll cover that in a future article.
If you’ve received a “Notice of Default” and don’t know what to do, please give us a call. You may call, text, email or simply fill out the form below and we’ll get back to you promptly.
As we always do, we recommend that our clients call an attorney experienced in real estate about your options and a financial counselor about the ramifications of both foreclosure and short sale.
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