What exactly is a “Short Sale”?

Redding, CA Short SaleI just wanted to take a moment to discuss a SHORT SALE as many people that we encounter in the Redding area have no clue what it actually means. 

A “short sale” is when someone who owns a home (financed by a bank) is allowed to sell the home for less than the current amount owed on the property.  The bank needs to approve the amount of payoff that is “short” of the amount that is owed to them and this is where the name “short sale” comes from. 

The misconception is that ANYONE can do a short sale just because the home is worth less than they paid for it.  This is very untrue and Realtors should be discussing this with potential homeowners looking to do a short sale on their home.  Banks now are reviewing possible short sale homes to determine if the seller actually qualifies to sell the home short. 

So how can a home and the seller “qualify” for a short sale?  Each bank varies.  This being said, the general rule is that the seller needs to show a “hardship” through a letter in which they disclose their situation that has led them to HAVE to sell the home now instead of waiting out the market.  Some hardships include loss of job or medical problems and the seller should present actual proof of the hardship with the Short Sale package.   In addition to a hardship, some banks are reviewing the original loan package from when the buyer purchased the home to ensure they didn’t exaggerate their income/decrease expenses when they originally purchased (which is actually lender fraud and some areas considered “grand theft”).  You should also be prepared to provide past tax documents and statements of current income/expenses to support your need to sell now. 

For more information on Short Sales contact Clint & Mindy Cronic, The Cronic Group of Real Estate Professionals GMAC at 530.227.0345 or via email at contactus@sellingredding.com.

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Redding Home Update as of February 28, 2009

Residential Listings: There are currently 1543 active listings (up from 1525 1 month ago and 1538 earlier this week) and another 303 listings that are pending escrow (exactly the same as 1 month ago and down from 318 earlier this week). So far this year there have been 229 sold listings in the MLS database.

Historical Data for Closed (Sold) MLS Listings in Shasta County:

Overall statistic for the year 2007: there were 2,140 listings that sold (closed escrow) and were recorded in the MLS database.

Overall statistic for the year 2008: there were 1,942 listings that sold (closed escrow) and were recorded in the MLS datbase.

Click Here to search the entire Shasta MLS!

Are you thinking of selling your home? Before selecting your agent make sure that they know where the market is going, where it has been and how they can help you to SELL your home, not just LIST it!

If you are buying a home we’d love to help you find the home of your dreams. Whether you are buying in 2 days or 2 years we can help you from relocation information, school data or neighborhood demographics to loan prequalification, previewing homes or sending virtual tours!

Contact Clint and Mindy Cronic at Real Estate Professionals, GMAC today at 530.227.0345 for more information on how our agressive marketing strategy can SELL your home or visit our website, www.sellingredding.com to search the entire MLS database for your next new home!

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The REAL secrets behind Home Staging!

Home StagingNearly everyone these days has been watching the TV shows on HGTV…”Design on a Dime”, “Buy Me”, “Color Splash”…or even the latest “The Stagers”.  We’ve learned how to make our homes look like a million bucks for next to nothing for actually living in them but is this the best advice for a future home seller?

No.  Staging is not the same as creating a usable space that you will enjoy.  Instead, staging is the art of making your home appealing to the masses (or as many people as possible) instead of for you.  True home staging doesn’t address the issues of comfort and usability…instead, it address the best way to make the rooms look the largest by increasing the open floor space. 

Whether it is elimination of extra furniture (ie side tables, floor pillows, large bulky furniture and replacing them with smaller furniture and larger art work, mirrors (to enlarge rooms) and wall decor.  By picking items up off the floor and making the walls tell the story the rooms visually are larger and more open. 

Creating an atmosphere viod of overly-dramatic details (deep colored walls, etc.) can help more people imagine themselves living in the space and helps them to avoid the feeling that there is much work (painting, repairs) that would have to be done before they move in.  These changes equal $$$$ and that decreases potential offer prices should an offer be made.

Neutral color palattes are the rage for home sellers…browns, beiges, light colors that reflect light and enlarge spaces as well as spaced furniture that maximizes window views, fireplaces…any focal point.  So what should you do to start?  Focus on the overall look of your room.  Eliminate those “trinkets” with sentimental value (often they don’t add to the appeal but detract from it)…remove the items that are bulky and serve a specific purpose for you but aren’t needed in the room to show it (ie CD storage, small tables, computer desk, etc.  Paint the room a light and airy color and pull blinds up for showings to add light to the room. 

Remember, if all else fails, call a neutral third party to suggest changes that you wouldn’t have thought of yourself!  It is best to not be a friend/family member as they can foster feelings about certain objects. If you are in the Shasta/Tehama County areas, we’d be glad to help you!  Just call us at 530.227.0345! 

HAPPY STAGING!

Clint & Mindy Cronic are Realtors with Real Estate Professionals, GMAC in Redding, California.  If you are thinking of listing or buying a home contact us today for our aggressive marketing package or comprehensive buyer services VIP program!  530.227.0345 or contactus@sellingredding.com

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Shasta County Home Sales Update

redding home salesWell most people reading the local newspaper, The Record Searchlight, couldn’t miss the front page article yesterday about the local housing market in contrast to the economy crisis nationwide. 

According to DataQuick Information Systems the median sales price in Shasta County was $212,750 for new and resale homes which is down from $225,000 in August and $253,000 in September 2007.  This data puts median home prices in Shasta County  29% below our highest peak in 2006 at $300,000.  The numbers that we are seeing now are more indicitive of 2004 sales prices (as the median sales price was $190,000 in April 2004).  Althouh meidan prices are down, DataQuick also reported that 168 homes were sold in Shasta County in September, a 7.7 percent increase from a year ago. For more information on our local real estate market visit our Real Estate Blog.

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Redding Real Estate Statistics 10/13/08

Image of houseResidential Listings:  There are currently 1746 active listings and another 384 listings that are pending (in escrow).  Two weeks ago there were 1877 active listings with another 368 in escrow which was up from 1,702 active listings 4 months ago! 

     Historical Data for Closed (Sold) MLS Listings in Shasta County

  • 163 closed escrows in April 2008
  • 182 closed escrows in May 2008
  • 151 closed escrows in June 2008
  • 169 closed escrows in July 2008
  • 186 closed escrows in August 2008
  • 177 closed escrows in September 2008
  • So far there have been 41 closed escrows in October 2008 

Overall statistic for the year 2007: there were 2,140 listings that sold (closed escrow) and were recorded in the MLS database.  So far in 2008 we have had 1476 listings that have closed escrow. 

Click Here to search the entire Shasta MLS!

Are you thinking of selling your home?  Before selecting your agent make sure that they know where the market is going, where it has been and how they can help you to SELL your home, not just LIST it! 

If you are buying a home we’d love to help you find the home of your dreams.  Whether you are buying in 2 days or 2 years we can help you from relocation information, school data or neighborhood demographics to loan prequalification, previewing homes or sending virtual tours! 

Contact Clint and Mindy Cronic at Real Estate Professionals, GMAC today at 530.227.0345 for more information on how our agressive marketing strategy can SELL your home!

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$250 Million in Loss From 1031 Exchanges

In recent years, according to the Treasury, there have been 23 instances of major fraud involving $250 million in estimated losses with properties undergoing a “1031 exchange”. Unfortunately the land owners have been unaware of the fraud which sometimes forces exchangers to get hit with large tax bills from the IRS. 

Those responsible for 1031 exchange fraud are generally the intermediaries that the landowner hires to hold their money until they are ready to reinvest it into a like property.  Instead of holding the money and merely earning interest or some other form of payment on the money these intermediaries will “borrow” the money and not be able to pay it back or outright steal it and leave town. 

If you are thinking of hiring an intermediary to hold your money from a 1031 exchange check to ensure they are a reputable company.  One well-known intermediary is Orexco, a subsidiary of Old Republic. 

Thinking about doing a 1031 exchange or wondering what the benefits are?  Click here for more information!

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The Importance of a Home Inspector

If you are thinking of buying a home you should be familiar with what a home inspector is and why you would hire one.  First, a home inspector does just that-inspects the home.  Generally a licensed home inspector will help you to determine the major problem areas (if any) and help guide you to get further inspections if necessary.  In our area home inspections generally cost under $350 and provide a level of comfort to the buyer (who generally pays for the inspection if they so desire). 

The five areas that you want to ensure your home inspector inspects are: roof, electrical, foundation, plumbing and inspect the attic.  The inspector will review the electrical panel and outlets to ensure they are grounded, crawl under home if possible to check foundation, run dishwasher, sinks and toilets for leaks, look in the attic for insulation and/or pests.  Not all home inspectors are created equal so ensure you are hiring a reputable inspector and that they are licensed!  Also, a good home inspector will refer you to other inspectors (ie a roof inspector) as needed.

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Proper planning for a home purchase


Proper Planning for a Home Purchase Can Eliminate ALL of the Stress
By: Jonathan Hansen

Planning everything properly before striking the final deal on your new home purchase can make the transaction virtually stress free!

There is nothing more stressful than buying a new home. So, whenever you are determined to buy a new home, you need to plan properly. Evaluate various factors such as your financial status, size of the mortgage, the interest rate, community, and other important issues. You can simplify the complex steps of buying a new house by breaking the process into various steps.

Your budget is the most important thing that you will need to consider in buying a new home. As the price of the home is very expensive these days, you may need to research your finances very carefully before taking a mortgage. If your financial status is sound, then making that initial down payment shouldn't be difficult.

Once you decide to buy a new home, you will need to begin the search. It is always advisable to get pre-approved for a mortgage. Searching for the right home can also be very complicated without the help of a real estate agent who possesses good knowledge of your chosen community. They can determine the type of house you may like, educate you about the community, and other important aspects of home buying. Don't stop hunting for your new house soon after talking with just one agent. It is recommended that you contact several agents that may help you find your dream home.

When you've found that dream home after a long hunt, it's time to find a loan so that you may finalize the deal. The size of your mortgage will depend upon the cost price of your home and your current financial status. Please check out and compare the policies, rules and interest rates of various lenders before you sign and find a loan that best suits your income and financial needs.

Don't stop negotiating the price of the home. The more you can negotiate, the better, creating a lesser burden for you in future. Before making the final deal, carefully evaluate the new home, insuring that it contains all you want in your dream home.

When things strike the right note, it's time for you to make a final deal. Your long stressful hunting is over now. The time has come for relaxation and the start of a new life in your dream home.

Author Resource:-> Jonathan Hansen is an expert in the field personal finance, mortgage, refinance, and debt consolidation. You can call 1-800-772-7027 for a rate quote or visit his company site to learn more about obtaining a Home Mortgage online.

Article From US Real Estate Articles

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3,300sqft Log Home in Cottonwood, CA $399,999

Here’s a link to our newest listing, a 3300 square foot home on 10 acres in West Cottonwood between Redding and Red Bluff, California. This log home has a great in-law setup as well as an additional recreation room plus 3 other bedrooms and an office! Plenty of room for everyone! Call us at 530.227.0345 for more information on this home or to schedule a private viewing.

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Fannie Mae and Freddie Mac Rescued

Fannie Mae & Freddie Mac RescuedOn Sunday, Federal officials unveiled the elaborate plans to takeover Fannie Mae and Freddie Mac, the two giants in mortgage lending backers in the United States.  Fannie Mae and Freddie Mac currently back over $5 trillion in home loans, not directly lending the money but backing the money that is lent by mortgage lenders. 

The Federal Housing Finance Agency is planning on taking the 2 companies under a federal goverment conservatorship and overseeing their actions until the companies and our national housing market are back on solid ground. 

Fannie Mae and Freddie Mac, which are both Fortune 500 companies were originally created by the federal government to back the loans of traditional lenders.  Over the last year the two companies have lost nearly $12 billion due to the decline in home prices coupled with the high increase in foreclosures and the inability of buyers to pay their monthly home mortgages.

Federals announced that both companies would be open Monday morning as usual but will have undergone a complete structural facelift over the weekend. 

So what about the stock and ownership of the companies?  Both the treasury and the FHFA will be purchasing large quantities of preferred stock in the companies to bolster support of the current shareholders and prevent them from mass-selling their stocks. 

Stay tuned for more posts on how this will affect current homeowners and potential home buyers as well as what the long-term effects will be with the US government.

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Redding Real Estate Market Update 9/3/08

Image of houseResidential Listings:  There are currently 1877 active listings and another 368 listings that are pending (in escrow).  Last week there were 1893 active listings with another 376 in escrow which was up from 1,702 active listings 3 months ago! 

     Historical Data for Closed (Sold) MLS Listings in Shasta County

  • 163 closed escrows in April 2008
  • 182 closed escrows in May 2008
  • 151 closed escrows in June 2008
  • 169 closed escrows in July 2008
  • 186 closed escrows in August 2008
  • So far in September 2008 there have been 2 closed escrows. 

Overall statistic for the year 2007: there were 2,140 listings that sold (closed escrow) and were recorded in the MLS database.  So far in 2008 we have had 1250 listings that have closed escrow. 

Click Here to search the entire Shasta MLS!

Are you thinking of selling your home?  Before selecting your agent make sure that they know where the market is going, where it has been and how they can help you to SELL your home, not just LIST it!  Contact Clint and Mindy Cronic at Real Estate Professionals, GMAC today at 530.227.0345 for more information on how our agressive marketing strategy can SELL your home!

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Goodbye Nehemiah…hello weekend!

This last week in real estate has been a lot of hard work!  With one of the most popular additions to FHA (the Nehemiah) going away and this really being the last opportunity to get clients into escrow under the program, we had much to do in a short amount of time.  Nothing like being the buyers (or agent) when you know you HAVE to put an offer in that week or you won’t be able to have a down payment to buy your first home.  For those that don’t know, the program basically allows a seller to do a 3% credit back to the buyer for closing costs and also “grant” another 3% to the Nehemiah Foundation who directly “grants” the money back to the buyer for their down payment.  Great way to “work the system” legally and give 6% to buyer for FHA loans.  There are similar programs out there now but those that were already planning and pre-qualified under this program want to use it and there is plenty of inventory out there at good prices…oh yes, interest rates are still comparatively low!

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Home Loans for Redding, CA

Sommer Mouser, Bank of America Mortgage in Redding, CA

 

My name is Sommer Mouser with Bank of America Mortgage in Redding. I’ll be sharing information on the most current mortgage trends- what products are currently working well, what new ones come along, where rates are, ideas to save you money now and in the long run. 

 

 

 

 

Here’s my contact information:
Sommer Mouser, Bank of America Mortgage
1661 East Street
Redding, Ca 96001
530-305-4241

To prequalify for a loan or learn more about buying a home visit my website

 

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Redding Real Estate Market Statistics

Residential Listings:  There are currently 1893 active listings and another 376 listings that are pending (in escrow).  Last week there were 1886 active listings with another 393 in escrow which was up from 1,702 active listings 3 months ago! 

Historical Data for Closed (Sold) MLS Listings in Shasta County

  • 163 closed escrows in April 2008
  • 182 closed escrows in May 2008
  • 151 closed escrows in June 2008
  • 169 closed escrows in July 2008
  • So far in August 2008 there have been 150 closed escrows. 

Overall statistic for the year 2007: there were 2,140 listings that sold (closed escrow) and were recorded in the MLS database.  So far in 2008 we have had 1212 listings that have closed escrow. 

Click Here to search the entire Shasta MLS!

Are you thinking of selling your home?  Before selecting your agent make sure that they know where the market is going, where it has been and how they can help you to SELL your home, not just LIST it!  Contact Clint and Mindy Cronic at Real Estate Professionals, GMAC today at 530.227.0345 for more information on how our agressive marketing strategy can SELL your home!

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