Stans Blog

A 47-year-old Simi Valley bicyclist was hospitalized this week with a collapsed left lung after being hit by a pickup truck at Erringer Road and Royal Avenue.

Yvonne Wilber said her husband, Tom, was riding home on Erringer about 5:30 p.m. Wednesday when he was struck by a truck turning right on to Royal. The pickup left the scene without stopping, she said. Wilber said her husband was able to get a partial description of the truck, which he described as a dark-colored Dodge.

Simi Valley Sgt. John Adamczyk said police are investigating the incident as a hit-and-run collision based on what Yvonne Wilber told them.

She said her husband also broke a rib in the crash. He was taken to Simi Valley Hospital.

Saturday, December 8, 2007

From the Ventura Star

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Price Drops Are Sobering, But The Big Picture Is Still Rosy
Washington Post Writers Group
By Kenneth R. Harney
Saturday, November 17, 2007

With the daily bad news about the state of the housing market, it’s easy to lose sight of some larger economic realities: Despite declining prices in many markets, homeowners still control near-record equity holdings, just under $11 trillion.

In its latest quarterly “flow of funds” statistical report, the Federal Reserve calculated that U.S. homeowners’ equity accounts totaled $10.9 trillion in mid-2007. That was the difference between total home mortgage debt ($10.1 trillion) and the total market value of home real estate (about $21 trillion).

The second-quarter equity number was down about $6 billion from the first quarter of the year but was $48 billion more than it was at the end of 2006. In other words, there’s no question that equity holdings have declined recently and may well be lower when the Fed issues its next quarterly report, in mid-December. But in an $11 trillion marketplace, a $6 billion giveback in a cyclical correction is not a cause for panic.

A similar, localized reality affects dozens of metropolitan markets that saw double-digit appreciation rates during the boom years. Prices are off — 4.4 percent on average among 20 major markets covered by the latest Standard & Poor’s/Case-Shiller home price index. But where prices more than doubled, as they did in 33 metropolitan markets between 2001 and 2006, according to federal estimates, even 10 percent and larger average price drops in once-booming areas of California and Florida have left owners with most of their paper gains intact.

This month in the Fort Myers area of southwest Florida, where average home prices rose 130 percent from 2001 to 2006, a taxi driver told me that he bought a house for $234,000 four years ago and turned down an offer for $439,000 in early 2006. Now he figures he can’t get more than $379,000 for it — a $60,000 drop in value in a year and a half. But he figures he’s still ahead by $145,000 and has more than $150,000 in equity.

His estimates of gain may be optimistic — he didn’t factor in his costs of ownership, such as mortgage payments, taxes, insurance, improvements and the like. But his basic conclusion is probably correct. Even with the price declines that have racked the area, he’s well ahead.

Personal stories such as the taxi driver’s are common in many parts of the country, with two large exceptions: People who bought close to the peak of the boom — and thus haven’t been in the house long enough to reap advantages from double-digit appreciation — may now be in negative-equity territory. Add to that homeowners in unemployment-ravaged communities, especially in the industrial Midwest, where foreclosures are pulling entire neighborhoods’ house values down and destroying equity built up over years.

Many of these stories fill the news pages and cast a pall on consumers’ perspectives. But sad as they are, they are not the predominant reality in real estate across the country.

For the vast majority of owners, even in the formerly highest-flying areas, the giveback has been a modest fraction of the price gains of the previous five years.

Citing Case-Shiller index data, Brian Catalde, president of the National Association of Home Builders, said home prices in Los Angeles fell 5.7 percent in the past 12 months but are up a net 88.9 percent since 2002. In Chicago, prices were down 1.3 percent from August 2006 to August 2007. But they were up a net 34.2 percent in the past five years.

Phoenix prices were down by 8 percent in 12 months, according to the Case-Shiller index, but were up by a net 80.2 percent since 2002. And of course there are dozens of metropolitan home markets that never were touched by the boom’s excesses and have not seen price drops at all.

Examples include Dallas, where homes gained by an average of just 17.8 percent in value during the boom years of 2001 to 2006, according to the Office of Federal Housing Enterprise Oversight’s home price index. But from mid-2006 through mid-2007, Dallas house prices gained 5 percent. Add entire swaths of the country: the Pacific Northwest, parts of North Carolina, Tennessee, Utah and the Rocky Mountain states, where house prices continue to gain moderately, and you begin to see the bigger national picture.

The housing-price correction cycle continues in many — not all — parts of the country. It is sobering or painful for just about everybody except buyers. But in the absence of a recession or major capital-market crisis, the fact is that most homeowners’ equity stakes are intact, or even growing.

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Fannie, Freddie, FHA would provide funding

Thursday, October 11, 2007

The House of Representatives approved legislation Wednesday that would siphon off up to $1 billion a year from Fannie Mae, Freddie Mac and the Federal Housing Administration to build affordable rental housing and provide down-payment assistance for first-time home buyers.

Supporters of HR 2895, the National Affordable Housing Trust Fund Act of 2007, say it would be the largest expansion in federal housing programs in decades — providing $800 million to $1 billion a year to build, rehabilitate or preserve 1.5 million units of rental housing over the next decade.

“It has been 17 years since the federal government last enacted a major affordable-housing production program,” said Rep. Maxine Waters, D-Calif., in a statement. Waters said HR 2895 would “tackle the full range of housing crises, providing relief to overburdened renters and homeowners while targeting funds where the need is greatest.”

House lawmakers approved the bill in a 264 to 148 vote, but it relies on other legislation for funding and is opposed by the Bush administration.

The Bush administration’s opposition to the bill stems from its reliance on projected surpluses from FHA loan-guarantee programs, and a proposed affordable-housing fund that would be fed by revenue from government-sponsored mortgage repurchasers Fannie Mae and Freddie Mac.

HR 1427, a bill approved by the House in May to strengthen regulatory oversight of Fannie and Freddie, would require the government-sponsored entities (GSEs) to contribute an amount equal to 1.2 basis points of their outstanding mortgages to the affordable-housing fund.

Another bill, HR 1852, is intended to modernize FHA loan programs by allowing risk-based premiums, zero-down loans and increased loan limits in high-cost areas.

FHA has estimated that the modernization bill, approved by the House on Sept. 18, could generate an extra $342 million in revenue in 2008 — as opposed to a $143 million taxpayer subsidy without changes to its loan-guarantee programs. The National Affordable Housing Trust Fund would use some of that revenue for affordable housing.

HUD Assistant Secretary Brian Montgomery told members of the House Financial Services Committee this summer that diverting revenue from FHA programs would be like “robbing Peter to pay Paul,” and could pressure FHA administrators to hit revenue targets.

The Bush administration also objects to tapping Fannie and Freddie for an affordable-housing fund, saying that could create pressure for unrestrained growth of the GSEs’ loan portfolios. Democrats have called on the administration to raise the $1.4 trillion cap on the GSEs’ loan portfolios.

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Sponsored by: NATIONAL ASSOCIATION OF REALTORS®

Now that you have decided to sell your home, what’s next? Certainly, making home improvements to help you sell is at the top of the list. When you’ve done that, you’ll want to stage your home for an open house. To give you some great open house tips, we have partnered with the NATIONAL ASSOCIATION OF REALTORS® to prepare this Open House Checklist.

1. Take a Tour of Your Home. Pretend that you’ve never seen the house before, and give it a critical look. Examine the exterior, walk through the interior, and smell for odors. You may ask a trusted friend to join you on your walk-through, helping you see things that you’ve learned to ignore. As you tour your home, make note of home improvements to help you sell and create a list of open house ideas.

2. De-Clutter in Every Room. To make rooms feel more spacious, remove excess and oversized furniture. You may also consider rearranging your remaining furniture to visually expand certain rooms. If your shelves are filled, remove some of the books, movies, and knickknacks to visually “open up” these areas. For the money, getting rid of clutter is one of the best home improvements to help you sell. Why? Because it’s free! Throw out stacks of newspapers or magazines. Pack away most of your small decorative items and out-of-season clothing in storage containers. Clean out and organize your closets, garage, cabinets, and pantry to make your home feel more accommodating.

3. De-Personalize Your Home. Unique things that make your place more “you” may actually distract potential buyers from envisioning their own personal touches. Remove or hide away items like family photographs, personal mementos and knicknacks, refrigerator magnets, and personal care items (like toothbrushes and medications) so potential buyers can imagine your space as their new home.

4. Let in (or Plug in) More Light. The lighter and brighter your home is when you hold your open house, the larger and more inviting it will seem to potential buyers. Here are some open house ideas for introducing more light: Wash your windows and screens to let more light into your home’s interior. Put higher wattage incandescent bulbs in all your light sockets to make rooms seem brighter, especially in basements and other dark rooms. Be sure that all lights are turned on and all curtains are pulled open when you hold your open house.

5. Get Rid of Odors. To get rid of any offensive odors, you should steam clean your carpeting and drapes. This will go a long way towards eliminating cooking odors, smoke residue, and pet smells. After you’ve steam cleaned, keep your home smelling great by changing your bed linens and towels regularly, asking smokers to smoke outside, keeping pets outside as much as possible, sifting the kitty litter box daily, and keeping your windows open as much as possible. On the day of your open house, a scented candle is a nice touch.

A note about pets: On the day of your open house, ideally, you’ll be able to relocate your pets. Not only will pets under foot quickly put a damper on an otherwise positive showing, but your pets will be safer—and probably less stressed—if they aren’t in the home during the open house. If you can’t take your pets to a friend’s house or kennel, at least put them outside for the day.

6. Keep Everything Extra Clean. Take the time to clean every square inch of your house before holding your open house. “Clean, clean, clean” is one of the best showing tips for selling a home. Don’t forget to look in places you might otherwise ignore: Fingerprints on light switch plates, dust on baseboards, film on shower doors, mildew on bathtub caulk, smudges or smears on kitchen cabinets, dryer lint residue on the washer and dryer. A house that is extra clean makes a powerful first impression and convinces buyers that the owners have taken good care of the home.

7. Expose Desirable Features. If you have beautiful hardwood floors, remove area rugs and show them off. If you have custom or oversized windows, replace heavy drapes with lighter ones that highlight this feature. If you have a pleasing view out a certain window, pull back the drapes to showcase the landscape. If you have a large walk-in attic, put a sign on the door letting potential buyers know to peek inside. If your deck is perfect for entertaining, help buyers envision family and friends enjoying the back yard together by “staging” the deck with potted plants, furniture, and a patio umbrella.

8. Give Extra Attention to Kitchen and Baths. Kitchens and baths are two of the most important rooms in the minds of potential buyers. You want to do all you can to make these rooms appealing for your open house. Here are some open house tips: Clear the countertops, leaving only a decorative item or plant. Make sure cabinets, appliances, and fixtures are sparkling clean. Expect that potential buyers will open cupboards, cabinets, and drawers, so clean and organize these areas. Mop and wax/polish the floors for a fresh, clean appearance.

9. Neutralize the Colors in Your Home. You may like bold, vivid colors but they could be offputting to potential buyers. As you change the colors in your home, remember that this is a home improvement intended to help you sell—not to please your own aesthetic sensibilities. Go with neutral colors—like linen, cream, or beige—in common rooms and bedrooms. You can safely add a splash of color in bathrooms with pale blues and cooling greens for a calming, spa-like effect.

10. Clean and Beautify the Exterior. To boost curb appeal, one open house tip is to give your home’s exterior some extra attention. Clean your gutters, power wash your home’s siding/windows, and make any necessary home improvements to help you sell. Give your home’s entrance a little facelift by sweeping the walkway, putting out a new doormat, and placing some pots of flowering annuals by the door. As for the yard, make sure you remove any dead brush and overgrown plants. Weed the flower beds, trim the shrubs, freshen up the mulch, mow the lawn, and edge the sidewalks. A touch of paint on the mailbox and porch handrails can also add a fresh touch.

By following these tips for selling your home and hosting a successful open house, your hard work is sure to be noticed. Remember, it pays to do the work for your buyers, helping them envision your home as their own. You may even increase the offers on your home by thousands of dollars and sell your home more quickly!

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1. Be picky, but don’t be unrealistic. There is no perfect home.

2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.

4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.

5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.

6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best.

8. Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.

9. Don’t be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.

10. Get help. Consider hiring a REALTOR® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.

Sponsored by:

Buying a home will likely be the biggest purchase of your life but it doesn’t have to be difficult. By asking some basic questions and working with a REALTOR® you will find home buying a positive, memorable experience.

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Of all the tips for selling your home, hiring a REALTOR® may be at the very top of the list. If you’re a homeowner saying “we want to sell our home fast,” you owe it to yourself to find out how a REALTOR® can make it happen!

If you’re not sure why you need a REALTOR®, think about how important it is to effectively market your home. Fact is, the more people that know your home is for sale, the quicker you’ll sell. In many U.S. markets, more than 50% of real estate sales are cooperative sales, meaning that a REALTOR® other than your own supplies the buyer. In order to “get the word out” to prospective buyers and their agents, your REALTOR® will disburse information about your home to other agents through tools like the Multiple Listing Service (MLS), cooperative marketing networks, and open houses for agents.

Another reason why you should have a REALTOR®: Consider the fact that real estate transactions are complicated and time consuming. Selling or buying a home is one of the biggest financial investments most people experience in their lifetime-don’t go it alone! A REALTOR® can help you sell more quickly by avoiding delays and costly mistakes. Your REALTOR® will guide you through all the paperwork and legal issues of selling, expediting the process every step of the way.

The articles listed below provide more tips for selling your home and more common-sense reasons why you need a REALTOR®.

*A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS®.

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Many people never buy the home of their dreams simply
because they don’t think they have enough money for the
down payment. They’ve been told through the years that
they need 10% or 20% of the purchase price in order
to buy a home. Well, this simply isn’t true.

So why have so many real estate companies told them
this?

Quite honestly, it’s because selling homes to people with
10% or 20% down is easier than selling homes to people
who have little or no money for a down payment. Most
real estate salespeople would rather go after the
“easy sale” than try to help people who have special needs.

As a BY REFERRAL ONLY Real Estate Consultant,
my mission is clear: To Help People. That’s why we’ve
created this special report and sent it to you with
no obligation.

This report is specially designed for people with good
credit and a good income, but who just don’t have much
money for a down payment.

Option 1: FHA Loans

Although this isn’t a “No Money Down” option, the FHA
loan is by far one of the best alternatives for people who
want to buy a home and don’t have much money to put
down. With an FHA loan, you could put down as little as
3%. Plus, FHA loans are easier to qualify for.

Now, 3% may seem like a lot to come up with, but many
people find that when they put their minds to it, 3% is
actually possible. While you can’t “borrow” the 3%, you
can get a “gift” from a family member or borrow from your
401k, for example.

FHA loans do have requirements and restrictions. Not all
townhomes and condos qualify, and there is a maximum
loan amount you can get. But if you’ve been dreaming of
a new home and think you might be able to “scrounge up”
3%, this is a great way to go.

Option 2: HDA Loans

Some Housing Development Authorities have a first-time
homebuyers` program that offers below-market, fixed-rate,
and 15- or 30-year loans. There are restrictions as to
maximum household income, as well as the price of the
home you are buying.

The only disadvantage with this loan is that if you sell the
house before the end of the loan term, you may have to
“pay back” a portion of the subsidy used to get the lower
interest rate. However, if you’re a first-time homebuyer,
this may be an option to consider.

Option 3: Special Loan Programs

Special loan programs come and go quickly. There is one
available right now that will allow the seller to provide the
3% down payment required for a home loan. That means
no money out of your pocket if you know how to negotiate
with the seller! There is another program right now that
requires only 2% including closing costs! Wow! That’s
practically the same as “no money down”!

So, how do you find out what type of loan programs are
available for you right now? The best way is to work with
an experienced mortgage consultant who keeps up to speed on these
special programs. If you don’t know of one, we work with
at least three such mortgage professionals and we would
be happy to refer you to one of them, depending on your
particular needs.

Option 4: Owner Financing

Owner financing means exactly that: The owner (or seller)
finances a portion of your home purchase. For example,
you might borrow 80% of the value of a home from a
lending institution, and “borrow” the other 20% from the
owner. In this situation, the owner “carries back” a second
mortgage.

Owner financing can be advantageous, especially to
investors who buy up properties and then rent them out.
For the average homebuyer, however, owner financing is
difficult to find and requires some tricky negotiating. Even
after successfully negotiating a transaction, it requires
some detailed work by qualified attorneys in order to
protect the interests of all parties involved.

While you shouldn’t rule out owner financing, keep in mind
that by looking for someone who is willing to help finance
your purchase, you severely limit your choices. There are
a lot of houses for sale today, but not a lot where owner
financing is an option.

Option 5: Lease-To-Own

With a lease-to-own, you essentially lease a home, but
make larger payments in order to begin accumulating a
down payment. For example, if a house would normally
lease for $800, you might lease it for $1,000/month, with
$200/month going into a special account. At the end of a
specified period, you buy the home using the money in that
special account as your down payment. However, if you
decide somewhere along the line not to purchase the
home, all of the money in the special account then
goes to the seller.

Think of this option as renting with a forced savings
account. If you can find someone willing to do this, it’s
not a bad option. However, most people who are selling
their homes need their money out of it in order to buy
their next home, so finding someone who is willing to lease
to you may prove more difficult.

Where To Begin

Now that you have five good options for buying a home for
little or no money down, where is the best place to begin?

The first step is getting pre-qualified. And the best way to
get pre-qualified is to let us refer you to a Mortgage Consultant who is
dedicated to helping people like you get into the home of
your dreams.

We’ll do more than help you get financed!

Financing is only the first step in the home buying process.
We are dedicated to helping you through the entire process,
delivering world-class service all along the way.
We can help you find the right home, negotiate the right
terms, and then make sure that you actually get to the
closing table. It’s all part of our Preferred Buyer’s
Program, which you can join for FREE! That’s right, it
won’t cost you a dime!

If you’d like to know more about your financing options
and would like to be part of our Preferred Buyer’s Program,
be sure to call us today.

Stan Rector
Troop Real Estate
2790 Tapo Canyon Rd.
Simi Valley, CA 93063

805-577-7902
Stan@StanRector.com

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July 10, 2007

Notice to Property Owners/Business Owners/Residents

Subject: Tapo Canyon Road and Alamo Street Improvement Project

On or about July 16, 2007, Excel Paving Company, the City’s contractor, will begin the construction of a street improvement project along Tapo Canyon Road between Cochran Street & Avenida Simi & Alamo Street between Tapo Canyon Road & Lemon Drive.

The improvements along Tapo Canyon Road & Alamo Street will primarily consist of an asphalt overlay & base repair/reconstruction of right turns lanes into the Police Department & DMV/Courthouse driveways; & installation of a new traffic signal at the intersection of Alamo Street & Police Department driveway.  The project is scheduled for completion in January 2008.

To minimize inconvenience along Tapo Canyon Road between Cochran Street & Alamo Street, most of the work will be performed at night between the hours of 9:00 pm & 6:00 am.

We regret any inconvenience this work may cause during construction & thank you in advance for your cooperation & understanding in assisting us to improve your neighborhood in the most efficient way possible.

If you have any questions about this project, please call:

General Contractor Excel Paving Co. at (562)599-5841 5:00 am to 6:00 pm
After hours:  Tom Meyer at (562)843-0544 or Kent Pleak at (562)843-0228

City Council Person:
Mansour Moradi, Senior Engineer
Department of Public Works
(805) 583-6891

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Nearly a full third of households are still renting…but if you are one of them, you could be paying a hefty price. Additionally, the children of the baby boomer generation are close to or at the home buying age, but these “echo boomers” could mistakenly decide to put off the purchase of a home because of all the noise about a “bubble” in home prices.
Is there a “bubble”? The simple answer is “no”. Even if interest rates move a bit higher, it won’t be enough to cause a nationwide slide in home prices. The key to a healthy housing market is the job market. If the payment on a new home might be slightly higher due to increased interest rates, it generally won’t stop someone from purchasing the home of their dreams…but if they feel their job is in jeopardy, it might be enough to stop them from making a move. So with the currently low levels of unemployment and the beefy gains in job creations, it looks like the housing market will remain vibrant. Although it will be difficult to sustain the double-digit gains that much of the country has seen, huge price declines are highly unlikely. Expect a more moderate rate of appreciation (starting in 2008), perhaps closer to the historical 6-7% range, which is still very good.
But this talk of a housing bubble has been going on for a few years now, and those who were unfortunately victimized by continuing to rent instead of purchasing a home are painfully mulling over their missed opportunity. But is it too late? Even with the more moderate levels of appreciation expected…procrastinating on that home purchase could cost you a bundle.
Let’s look at an example. If you are paying rent at $1,500 per month and your landlord increases your payment by a modest 5% each year, you would wind up paying just about $100,000 over a 5-year period! Worse yet, after forking over $100,000, you still would have nothing to show for it.
And speaking of having nothing to show for it - how about any improvements you might make to a rental property? It’s not uncommon for renters to freshen up the paint, install new light fixtures or plant some nice flowers outside. But guess what…all your efforts, labor and the benefit of that improvement belong to the landlord, not to you.

With the extensive variety of programs to help buyers obtain a mortgage with little to even zero down payment, the very same money could have been used towards home ownership. Even using a standard 30-year fixed program, a mortgage of $300,000 could be obtained with a total monthly mortgage payment - including property taxes and insurance - of around $2,200. Assuming a 25% tax bracket, this would be equivalent to the average amount spent on rent during the same period after your tax benefit.
And the benefits of home ownership are quite considerable. Because the mortgage is being paid down each month, equity is being built. After 5-years, the $300,000 mortgage would be reduced to $279,000, adding $21,000 to your net worth. Home appreciation can add an even bigger chunk. If your home appreciates at a modest 5% per year, the value of a $300,000 home would increase to $383,000 after 5-years. Subtract the remaining mortgage of $279,000 and you have a whopping $104,000 of additional net worth! Even if the appreciation level were at 3.5% or half the historical norm, the result would be $77,000 of additional net worth.
But if laying out the initial increase in monthly payment and having to wait for your tax benefit to show up next April is a tough nut to crack, the IRS wants to help. Instead of waiting to file for the tax benefits derived from your new home purchase, you can simply adjust the amount of your withholding. This allows you to have less tax withheld from each paycheck so you can handle the new mortgage payment more comfortably throughout the year. In essence, you are taking your tax refund as you go instead of letting Uncle Sam hold it all year, interest free.
Visit www.irs.gov and use the IRS withholding calculator. This very handy tool can quickly show you the effect a change in withholding will do to your net paycheck. Remember to balance this with the expected refund and it is always a good idea to check with your tax advisor.
Don’t be victimized by the bubble hype. Buying a home is a big step, but it is almost always one in the right direction.

Anonymous Writer

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If you would like an entry form send me an email with your name address and phone number and I will mail one out right away.

See the full flyer at www.StanRector.com Click here

Stan@StanRector.com

805-577-7902

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