It is an absolute misfortune and heartache when Ventura County homeowners are faced with very few options to save their home from foreclosure.  One of the most common options to avoid foreclosure on your home is to short sale your property.  However, some homeowners who are in distress hesitate to short sale their home due to the dreaded cost associated with a sale of a home. What most homeowners are unaware of is that short selling their home will most likely cost them NOTHING.

In a majority of cases, once the lender approves the short sale, the lender will also agree to pay for the cost associated with the sale of your home.  As a part of your short sale approval your lender will agree to pay for your Realtor fees, escrow fees, and title fees.

Nevertheless it is very important to realize that in real estate and especially in short sale situations all transactions are unique and the final outcome depends on the situation of the home seller.

For those home sellers who have a second mortgage, unpaid homeowners associations, or mortgage insurance, their lender may ask for the home seller or even the home buyer to contribute towards paying off these debts.

No matter what the outcome of short selling your home may be, it is important for you to know that you will not be collecting any proceeds from the sale of your home through a short sale.

If you have any further questions about short selling your Ventura County home or if you need assistance with short selling your Ventura County home please feel free to contact me, Mana Tulberg: 805-443-8898.

As a home seller in Ventura County it is critical to be informed about and to be conscious of your closing costs. Understanding your closing cost helps determine many factors in the final sale price of your Ventura County home.  Closing costs directly impact the biggest factor of all:  the absolute lowest price you are willing to sell your home in order to obtain your goal.  Both parties in a home sale transaction (home seller and home buyer) incur some costs.  These costs are all negotiable and are governed by the local laws and local real estate regulations.

Closing costs for home sellers are the expenses associated with the sale of their home.  At the end of escrow the closing cost amount is subtracted from the final sale price of your home.  As a home seller you may even arrange in the purchase contract to pay for the buyer’s closing costs.  No matter what you decide to do, it is important to know all closing costs and keep in mind that the delegation of your closing expenses are negotiable.

Below is a list of some of the typical expenses associated with the sale of your home in Ventura County:

• Paying off the remaining balance of your loan and any fees or penalties associated with your loan payoff.  During escrow the escrow officer will contact your lender to get the exact amount of your loan.

• Title insurance to insure a clear title on your property.  The amount of your title insurance depends on the sale price of your home.

• Brokers’ commission. It is typical for home seller to pay for both brokers, your broker and the home buyers’ broker.

• Transfer taxes which are governed by local laws.

• Escrow fees. Some home buyers may negotiate for you to pay for a portion or all of their escrow fees.

• Prorated property taxes, depends on when you sell your home in the tax year.

• Pest control inspection and the cost of any work that may need to be done.

• City or county transfer fees.  Some cities in Ventura County do not require a transfer fee.

• Home warranty plan. Some home sellers purchase a one year home warranty or home protection plan for the home buyer.

• Homeowner association transfer fees and documentation fees (if applicable).

• Notary fees, messenger fees, and other miscellaneous fees.

It is important to realize that many of the fees mentioned above are negotiable and can all be outlined in the purchase agreement between the home seller and the home buyer.

If you have any questions with regards to your closing costs please feel free to contact me, Mana Tulberg: 805-443-8898.

At the 2009 Realtors’ Expo I was invited to participate in Realtor.com’s Ask a Realtor event. I was asked the question “What do I need to know if I buy and sell a home at the same time?” Below is yours truly and my answer to the question above:

Community Action of Ventura County (CAVC) is a non-profit organization providing assistance to Ventura County low-income residents.  Since 1965 CAVC has offered support in many areas such as lease assistance, home weatherization, and home energy assistance programs, to name a few.

Lease Assistance

Low-income families in Ventura County who are facing eviction or homeless families who need some help with their moving cost, can request some support from CAVC.  Of course, CAVC needs to verify that you are eligible for their Lease Assistance program.   The list of documents for application can be found on CAVC’s Lease Assistance page.

Home Weatherization

This department of Community Action of Ventura County helps make homes more energy efficient for Ventura County homeowners and renters.  CAVC provides eligible families assistance with minor home repairs, water heater and furnace repairs or even replacement of unrepairable appliances.  To farther help reduce utility bills CAVC will even help with the replacement of your old light bulbs with new energy-efficient bulbs.  For more information on CAVC’s Home Weatherization program please click here.

Home Energy Assistance Program

Eligible households in Ventura County can also benefit from the Community Action’s home energy assistance program.  This program assists low-income families with their electric or gas bill at least once a year.  Once more, the home energy assistance program does require that families meet a certain guidelines and requirements.  To learn more about these requirements please click here.

You may also contact the Community Action of Ventura County directly: 805-436-4000

During this tough economy any help and assistance can add up and hopefully be appreciated.

When selling or buying a home in Ventura County it is important to have an awareness of the market conditions and how they will impact your home buying or selling objectives.  The Absorption Rate is a fairly uncomplicated metric that can be used to monitor market conditions.  Because it is a simple calculation it also lends itself well to price and geographic segmentation.  Absorption Rate  is the rate at which homes are able to sell in a given period of time.  The calculated absorption rate also determines whether the real estate market is a buyer’s or a seller’s market.

For example Ventura County’s absorption rate for June 2009 is calculated as follows:

• Total number of single family homes currently listed for sale in Ventura County: 1423
• Total number of single family homes sold last month, June 2009, in Ventura County: 508
• The total number of listed single family homes, 1423, is divided by the total number of single family homes sold last month, 508, to calculate the number of months it would take to sell Ventura County’s inventory of homes:  1423/508 = 2.8 months

The number calculated above, 2.8, indicates that it would take roughly 3 months to sell all the current single family homes listed for sale in Ventura County.

How does the absorption rate determines if it is a seller’s or buyer’s market:

• Absorption rate of 5-7 months indicates a Normal Market.
• Absorption rate of 1-4 months indicates a Seller’s Market.
• Absorption rate of 7+ months indicates a Buyer’s Market.

Based upon the calculation and guidelines above, an absorption rate of approximately 3 months indicates that the current real estate market in Ventura County is a seller’s market.

Although absorption rate is an important ratio in determining a real estate condition of an area, there are other factors that Ventura County home sellers and home buyers need to take into consideration.

The above number, 2.8 months, is an overall number for all of Ventura County.  The city, neighborhood, condition of the home, and the price play a big factor in the period of time it takes to sell a home in Ventura County.

Home Sellers in Ventura County and the Real Estate Absorption Rate:

It is important for home sellers in Ventura County to look closely at the absorption rate in their area when it comes to pricing their home.  A thorough knowledge of your area’s real estate market can help you decide on the appropriate asking price in the time period you wish to sell your home.

Home Buyers in Ventura County and the Real Estate Absorption Rate:

Knowing the absorption rate of certain areas is a great tool for home buyers during the negotiation process.  Better still, understanding the absorption rate for various price ranges, such as shown in the Table below, can provide a means to set realistic expectations for your specific purchase.

While absorption rate is an arbitrary factor, it can be used by both home sellers and home buyers as a tool to better understand the real estate market in different areas of Ventura County and help make better home buying and selling decisions.

If you need any help determining the absorption rate in your area or if you need any help with selling or buying a home in Ventura County please feel free to contact me, Mana Tulberg: (805) 443-8898.

As a Realtor in Ventura County, California I have the opportunity to preview many homes with or without swimming pools.  Occasionally I come across an abandoned short sale home or a bank owned home/REO where the once beautiful swimming pool has become a breeding ground for mosquito larva. In general, mosquito proliferation is problematic, however, above and beyond the nuisance that mosquitoes create is the even greater worry that some of these mosquitoes may carry diseases such as the West Nile Virus.  These murky, abandoned pools may place the neighboring homeowners and occupants at greater risk of being bitten by mosquitoes caring the West Nile Virus.

According to the California Department of Public Health the mosquitoes that carry West Nile Virus are most active at dawn and dusk and into the early evening hours.  The public health department recommends that we use EPA-registered mosquito repellents with either DEET, Picaridin, Oil of lemon eucalyptus, or IR3535.

Although there are no records of any human cases with the West Nile Virus in Ventura County, in July of this year the county officials recovered a bird carrying the West Nile Virus.

Ventura County residents are urged to report any abandoned swimming pools that have turned into a mosquito breeding source to the County officials by calling: (805) 658-4310.

The neglected and dried up front lawn of some abandoned and foreclosed homes in Ventura County can bring down the appearance of a neighborhood.  However, if there is an abandoned swimming pool in the back yard it is more important that the neighbors worry about what can grow in the pool than the front yard’s looks.

So, if you know of such an abondoned or otherwise improperly maintained pool, call 805-658-4310, and do your part in keeping your community and Ventura County safer.

On June 15, 2009 the California Foreclosure Prevention Act went into effect in order to help many Ventura County and California homeowners who are at the risk of losing their homes.  The California Foreclosure Prevention Act adds 90 days to the existing foreclosure process to help homeowners work on a loan modification program with their lenders.  This means Ventura County homeowners have an extra 90 days from the time that they have defaulted on their mortgage to the time their home is sold in a foreclosure auction.  California now requires that lenders need to prove that they have worked with a homeowner on a mortgage modification before the homeowner’s property is put up for foreclosure.

“The goal is to compel banks to do systematic loan modifications across California to reduce our foreclosure rate, which is the highest in the nation,” said Assemblyman Ted Lieu, D-Torrance, who wrote the bill.

While there is no guarantee that a homeowner is eligible for a loan modification, the new law would like to see that the lenders have made an effort to help the distressed homeowner.  Some lenders may choose not to participate in this program, however, in order to do so, they must apply for and receive an exemption from these provisions of the new law.

Although it’s great to see the government helping distressed homeowners, it is very important to know that this new law will not help every distressed homeowner in Ventura County, California.  Those homeowners in Ventura County who can not qualify for a loan modification, will opt to short sale their home.

As Ventura County distressed home owners wait for a loan modification, our county should see a reduction in the number of bank owned/REO homes.  Help from the government will assist many home owners in Ventura County, however so long as jobs are lost, governmental assistance will protect only some people from losing their homes.

If you need any help or have any question with mortgage modification in Ventura County please feel free to contact me, Mana Tulberg: (805) 443-8898.

As a Realtor I have the opportunity to preview many homes for sale in Ventura County.  Also, as a Realtor I see many homes where the home sellers’ remodeling actually lessens the value of their home.

Below is a 2 minute video from the show “This Old House” which may help many of you Ventura County homeowners with your home remodeling.

If you are looking to sell or purchase a home in Ventura County please feel free to contact me, Mana Tulberg: (805) 443-8898.

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.

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.