Nationwide more than 2,330,483 foreclosure fillings were recorded in 2008.  In the same period of time 523,624 foreclosure fillings were recorded against California home owners.  In Ventura County 8,422 properties were foreclosed upon in 2008.  (source: Realtytrac.com)

It is unfortunate and distressing that the number of foreclosures are likely to increase as our economy has taken a plunge and more job loses were announced at the beginning of 2009.  As more Ventura County home owners struggle to pay their mortgage, Ventura County’s real estate will report an increase in the number of short sales and consequently bank owned homes/REO homes.

Bank owned homes are usually priced below the local market value.  In order to liquidate their real estate assets, lenders try to price their homes aggressively.  The competitive pricing of bank owned homes forces other home sellers to price their homes equal to or less than the already available Ventura County real estate inventory.

Bank owned homes in Ventura County combined with other economic factors dominated home values in 2008.  An increase in the number of bank owned homes in 2009 will further reduce the current Ventura County home values.

Another note worthy factor is the American Recovery and Reinvestment Plan of 2009 which offers first time home buyers in Ventura County a tax credit of up to $8000.  The federal government’s incentive to Ventura County’s first time home buyer is expected to increase the number of homes sold in 2009.

California Association of Realtors (CAR) Vice President and Chief Economist Leslie Appleton-Young predicts that home sales in California will increase by 12.5% in 2009 as the median home prices in California will see a decline.

“We’re projecting that the median price will show a 6 percent decline from $381,00 in 2008 to
$358,000 in 2009.”

Source: car.org

On the other hand, towards the end of 2008, Ventura County home owners were re-introduced to the loan modification phenomenon.  Loan modifications help home owners through a favorable change to their loan’s terms with their lender.  Many lenders would prefer to reduce their near-term or overall return on the loan rather than foreclosing and eventually owning their client’s property.

In 2009 more loan modifications are expected to be granted to Ventura County home owners by their lender.  With President Obama’s Homeowners Affordability and Stability plan incentives are given to lenders who participate in modifying their troubled borrowers’ loans.

An increase in loan modification will reduce the number of defaulted mortgages and therefore Ventura County real estate will have less short sales and consequently less bank owned homes.

JPMorgan Chase & Co., Citigroup and Bank of America Corp., recipients of more than
$115 billion in government bailout funds, have committed to modifying at least
$230 billion of mortgages. JPMorgan and Citigroup said today they will suspend
foreclosures until mid-March to give the Obama Administration time to complete
details of its loan modification program.

Source: Bloomberg.com

“The Obama administration’s housing recovery plan will accelerate loan modifications for distressed homeowners and will reform the bankruptcy system for foreclosures” said Housing Secretary Shaun Donovan.

Source: latimes.com

However, if more Ventura County residents lose their jobs, it is unlikely that loan modifications alone are going to be helpful.

The outlook for 2009 is challenging to say the least, therefore, stay informed about local and national programs and rigorously examine all of your alternatives before making any real estate decisions.

If you need any help with buying or selling a Ventura County home or if you have any questions regarding loan modification please don’t hesitate to call me, Mana Tulberg: 805-443-8898.

On Wednesday, February 18, 2009, President Obama’s $75 billion plan which is set to ease and reduce the foreclosure crises in the country was unveiled to the nation.  The President’s three part plan, The Homeowners Affordability and Stability Plan, is said to help up to 9 million homeowners refinance or adjust their mortgages to avoid foreclosure.

How will the president’s new plan help Ventura County Homeowners avoid foreclosure on their homes?

The Homeowners Affordability and Stability plan offers some hope to Ventura County homeowners who are current on their mortgage and to those Ventura County homeowners who have defaulted on their loan.

The three components of the Homeowners Affordability and Stability plan are as follow:

• Refinancing for homeowners who are current on their mortgage:

This portion of the plan is directed towards homeowners with conforming loans who are current on their loan but are unable to refinance their home because they have less than 20% equity in their home or owe more than their home is worth.  These homeowners are now given the opportunity to refinance their loan into a 15 or 30 year fixed rate loan.  Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

Which Ventura County Homeowners Qualify for the Refinancing Plan?

• Ventura County homeowners who are current on their loan
• Ventura County homeowners whose loan is issued by Freddie Mac or Fannie Mae
• Ventura County homeowners who owe more than 5% more than their home is worth
• The property has to be your primary residence

When Can Ventura County Homeowners apply for the Refinancing Plan?

As early as March of 2009, Ventura County Homeowners are encouraged to contact their current lender for a refinancing package.

• Homeowner Stability Initiative:

This section of the Homeowners Affordability and Stability plan offers help to Ventura County homeowners who are behind on their mortgage payment or who have a hard time paying their monthly mortgage payments.  Under the Stability Initiative the lenders are encouraged to lower homeowners’ payment to 31% of the homeowners’ income.  The Stability Initiative provides mortgage lenders a financial incentive to modify existing first mortgages.

“Servicers (companies that collects mortgage payments) will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive “pay for success” fees — awarded monthly as long as the borrower stays current on the loan — of up to $1,000 each year for three years.”

“To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.”

Source: United States Department of Treasury

The Stability Initiative will also create a loan modification guideline for all lending institutes to follow.

If you need any help or assistance with modifying your current mortgage please don’t hesitate to contact me, Mana Tulberg: (805) 443-8898.

• Supporting low mortgage rates by Strengthening Confidence in Fannie Mae and Freddie Mac:

In order to promote liquidity in the market, the Treasury Department is planning on doubling their Preferred Stock Purchase Agreement with both Fannie Mae and Freddie Mac from $100 billion to $200 billion.  The Treasury will also continue purchasing Fannie Mae and Freddie Mac mortgage-Back securities to support and promote liquidity in the marketplace.

The question now is will the Homeowners Affordability and Stability plan work? If homeowners continue to lose their jobs, and consequently their source of income, no government plan, interest rate reductions, or loan modifications will help these homeowners.

After several days of negotiations between the White House, Senate, and the House of Representatives the American Recovery and Reinvestment Act of 2009 was finally passed; the final version setting the stimulus bill at $787.2 billion.  The Recovery Act will be signed into law on Tuesday, February 17, 2009 by President Obama.

Although there are a few reservations regarding the governments involvement in, and future consequences of a $787.2 billion stimulus package, many agree that action needs to be taken to create some relief from our current fiscal crisis.  The 2009 Recovery Act will contribute to: our transportation system, energy investments, state budgets, local government budgets, broadband Internet expansion, tax breaks, and initiatives for job creation.

For Ventura County home buyers and home owners the 2009 Stimulus package offers some promising incentives such as:

For Ventura County Home Buyers:

• In 2008 the conforming loan limits were increased to $729,750.  The American Recovery and Reinvestment Act of 2009 reinstates the $729,750 conforming loan limits until December 31, 2009.

• The 2009 bill will offer the first time Ventura County home buyers a tax credit in the amount of $8000 providing you purchase a home in Ventura County between January 1, 2009 to December 31, 2009.  The credit does NOT have to be paid back to the government unless the buyers sell their home within 3 years after the date of close of escrow on their Ventura County home.

For Ventura County Home Owners:

• The American Recovery and Reinvestment Act of 2009 offers incentives to existing Ventura County home owners for going Green.  A tax credit of up to $1500 is given to Ventura County home owners who make some “Green” home improvements.  These Green home improvements include, but not limited to, energy efficient windows, doors, and furnaces.

Source: Realtor.org

Not all the money allocated to the 2009 stimulus package will be spent right away.  However, the credit given to first time home buyers is something that most Ventura County home buyers should consider as a great aid to start the American Dream of Homeownership.

If you need any help with purchasing a home anywhere in Ventura County please don’t hesitate to call me, Mana Tulberg: (805) 443-8898.

Today I received a very valid question through an email from an Oxnard home owner.  The Ventura County home owner who contacted me has not missed a payment on his mortgage.  However, due to some financial changes his family won’t be able to continue making their mortgage payments much longer.

“I am interested in finding out more about the short sale process. In particular how does a short sale affect my credit rating?”

This is a great concern for many Ventura County home owners who may not be able to keep up with their mortgage but wish to keep a decent credit score.

Short sale is a process in which your lender agrees to the sale of your home for a price which is less than the balance you owe your lender.  There are conditions and stipulations that the home owner needs to meet in order for their lender to consent to a short sale.

How Does A Short Sale Effect My Credit Score?

Effect Of Short Sale On Your Credit Score If You Have NOT Missed A Mortgage Payment:

If you are not behind on your mortgage payment the first thing you need to present to your lender is a hardship letter where you explain why you feel eligible for a short sale.  Financial hardships are situations that prevent the home owner from making their mortgage payments such as a loss of job, divorce, death, or illness.

You can list your home for sale while waiting to hear whether your lender agrees to short sale your Ventura County home or not.   Once you list your home for sale, your property is placed on the Ventura County MLS for sale as a short sale by your Realtor.  It is very important that you hire a Realtor who has extensive knowledge on how short sales work.  After submitting a Borrower’s Authorization form to your lender your Realtor can then communicate and negotiate on your behalf the terms of the short sale.

If you wish to not have a significant drop in your credit, you should continue making your mortgage payment While your home is being marketed for sale.  There could be a slight negative effect on your credit score when you short sell your home in this manner.  However, if your lender decides to show the mortgage as “paid in full” then your credit remains untouched.  There are ways to negotiate with your lender for the least impact on your credit score.  If you need any help on short sales in Ventura County, please don’t hesitate to give me, Mana Tulberg, a call: (805) 443-8898.

Effect Of Short Sale On Your Credit Score If You Have Missed A Mortgage Payment:

Missing a payment on your mortgage has a definite negative effect on your credit score.  The way your credit score is calculated is based on your payment history, amount of your debt, length of your credit history, new credits, and types of credits you use.   The more days you fall behind on your mortgage, the harder the effect on your credit score.

Ventura County home owners who have missed payments on their home still have to get their lender to agree on a short sale.   After 3 months of missed payments your lender will issue a Notice Of Default (NOD) and the foreclosure procedures will start from this point on.  However, you can still negotiate a short sale with your lender.

The negative effect of a short sale on your credit score is far less than if your home was foreclosed upon.  Foreclosure remain on your credit score much longer than short sales.  A short sale can drop your credit score up to 100 points.   After a short sale if you take care of your credit it is possible to purchase a new home in less than 2 years.  The record of a short sale might remain on your report for more than 2 years.  Nevertheless, you should be able to apply for a loan with no problem in less than 2 years after your home has sold in a short sale (assuming you have maintained your good credit).

After you have successfully sold your home in a short sale, it is very important that you know how your lender will report the remaining balance of your loan to credit reporting agencies.

If you have any questions regarding short sales in Ventura County please don’t hesitate to contact me, Mana Tulberg, (805) 443-8898.

Currently there are 58 homes for sale in the city of Fillmore.  Of these 58 homes for sale in Fillmore, 20 homes are listed as short sale and 10 are bank owned or REO homes.

Below is a real estate market report for Fillmore for the month of January 2009.

Fillmore Real Estate Market-January 2009

Single Family Homes in Fillmore:

• Homes listed for sale in January:4
• Homes sold in January: 13
• Average home sale price: $256,858
• Median home sale price: $262,000
• Average days on market: 45
• Average selling price % of list price: 95.68%

Condos and Townhouses in Fillmore:

• Condos/Townhouses listed for sale in January: 0
• Condos/Townhouses sold in January: 0
• Average Condos/Townhouses sale price: N/A
• Median Condo/Townhouse sale price: N/A
• Average days on market: 0
• Average selling price % of list price: N/A

Source: Ventura County Regional Data Share

If you wish to receive updated information on Fillmore Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.

Currently there are 75 homes for sale in the city of Santa Paula.  Of these 75 homes for sale in Santa Paula, 28 homes are listed as short sale and 14 are bank owned or REO homes.

Below is a real estate market report for Santa Paula for the month of January 2009.

Santa Paula Real Estate Market-January 2009

Single Family Homes in Santa Paula:

• Homes listed for sale in January: 18
• Homes sold in January: 13
• Average home sale price: $328,985
• Median home sale price: $310,000
• Average days on market: 46
• Average selling price % of list price: 97.46%

Condos and Townhouses in Santa Paula:

• Condos/Townhouses listed for sale in January:1
• Condos/Townhouses sold in January:9
• Average Condos/Townhouses sale price: $187,867
• Median Condo/Townhouse sale price: $179,900
• Average days on market: 102
• Average selling price % of list price: 97.73%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Santa Paula Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.

There are currently 197 homes for sale in Port Hueneme.  Of these 197 homes for sale in Port Hueneme, 27 are short sale homes and 11 are bank owned or REO homes.

Below is a real estate market report for Port Hueneme for the month of January 2009.

Port Hueneme/Oxnard Beaches Real Estate Market-January 2009

Single Family Homes in Port Hueneme:

• Homes listed for sale in January: 24
• Homes sold in January: 8
• Average home sale price: $843,063
• Median home sale price: $771,000
• Average days on market: 33
• Average selling price % of list price: 93.41%

Condos and Townhouses in Port Hueneme:

• Condos/Townhouses listed for sale in January: 18
• Condos/Townhouses sold in January:5
• Average Condos/Townhouses sale price: $587,200
• Median Condo/Townhouse sale price: $350,000
• Average days on market:32
• Average selling price % of list price: 92.39%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Port Hueneme/Oxnard Beaches Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.

Currently there are 551 homes for sale in the city of Oxnard.  From the 551 homes for sale in Oxnard, 284 homes are short sale homes and 164 homes are bank owned or REO homes.

Below is a real estate market report for the city of Oxnard for the month of January 2009.

Oxnard Real Estate Market-January 2009

Single Family Homes in Oxnard:

• Homes listed for sale in January: 88
• Homes sold in January: 136
• Average home sale price: $284,945
• Median home sale price: $267,500
• Average days on market: 63
• Average selling price % of list price: 98.38%

Condos and Townhouses in Oxnard:

• Condos/Townhouses listed for sale in January: 55
• Condos/Townhouses sold in January: 25
• Average Condos/Townhouses sale price: $193,448
• Median Condo/Townhouse sale price: $190,000
• Average days on market: 40
• Average selling price % of list price: 98.98%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Oxnard Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.

There are currently 257 homes for sale in the city of Ventura.  Of these 257 homes for sale in Ventura, 64 homes are short sale homes and 39 are bank owned or REO homes.

Below is a real estate market report for the city of Ventura for the month of January 2009.

Ventura Real Estate Market-January 2009

Single Family Homes in Ventura:

• Homes listed for sale in January: 56
• Homes sold in January: 54
• Average home sale price: $456,074
• Median home sale price: $398,800
• Average days on market: 51
• Average selling price % of list price: 96.41%

Condos and Townhouses in Ventura:

• Condos/Townhouses listed for sale in November: 20
• Condos/Townhouses sold in January: 18
• Average Condos/Townhouses sale price: $247,956
• Median Condo/Townhouse sale price: $240,950
• Average days on market: 46
• Average selling price % of list price: 95.60%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Ventura Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.