My Blog

Confidence (high or low) is one of the largest factors that impact our
ability to achieve. No matter your vocation or discipline, it has been long
held that “your attitude determines your altitude.”

For years, I have been fortunate to work with some of the greatest achievers
in our industry; people who seem to always persevere when others seem to be
mired in quicksand. It’s not that these great achievers never have a
misstep nor make a mistake – but it’s always impressive to watch how they
ultimately ‘pull it together’ and come out ahead.

As I continuously watch, listen, and learn myself, the one common
characteristic that underscores each of their various leadership or
management styles is Confidence. Confidence born from the application of
good information with the lessons learned from their past
successes/challenges they or their trusted advisors experienced. And these
achievers remain in the forefront (and thus remain confident) because they
themselves continue the non-stop gathering and digestion of good information
surrounding their consumers changing needs, market dynamics, and sales
associates (and other trusted resources) inputs.

So, if the gathering and application of good information acts as the
catalyst for confidence, how do we know “good information” from “bad
information”? Well – I welcome any thoughts you may have on answering this
question.

However, what I will say is as we enter this time of year of considering
2010 and finalizing plans for 2011, there are some points that I know to be
good information for you and your team to aid with confidence:

* While unemployment statistics remain unfavorable, through the end of
the third quarter the nation has created 1.17 million jobs, compared to a
loss of 4.58 million jobs during the same period in 2009.
* The economy grew 2.5% (annualized rate) through the end of the third
quarter.
* Fannie Mae has re-forecasted growth upward for 2011 to 3.4%.
* Consumer confidence is on the rise, evident by real consumer
spending rose 2.8% (adjusted for inflation) at an annual rate at the end of
the third quarter.
* Demand for consumer credit is rising (even without the refinance
mortgage bubble), evident by increase of non-revolving credit largely due to
auto loans – which is another indicator of growing consumer confidence
since these are folks that are taking the ‘risk’ associated with longer term
loan obligations.
* Equity prices are on the rise. The rise (which is, of course,
speculative in nature) is a result of institutional investors becoming more
confident with our near term future.

These and other local measures that you have at your disposal give me the
confidence to say that 2011 will grow into being a solid year for our
customers, sales associates, and our franchisees.

Thank you for all that you do..and have a wonderful New Year!

Steve Belluomini
DRE# 01095848
Better Homes and Gardens Real Estate
Manager, Broker Associate
San Mateo Office
650-227-8869
650-207-5253-cell
steve.belluomini@bhghome.com

http://www.stevebelluomini.com

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http://inside-real-estate.com/north-san-mateo-ca/

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PLEASANTON, Calif., (September 29, 2010) – Mason-McDuffie Real Estate announced today that it has joined Better Homes and Gardens^® Real Estate LLC as part of its national franchise network. Mason-McDuffie signed a long-term, strategic franchise agreement and will now operate as Better Homes and Gardens Mason-McDuffie Real Estate, serving the Northern California and western Nevada markets. Originally founded in 1887, the company has done business as Prudential California Realty and Prudential Nevada Realty for the last 13 years. It will remain independently owned and operated.

With a sales volume of $2.8 billion in 2009, Mason-McDuffie ranked among the Top 20 real estate brokerages nationally according to REAL Trends, and also handled over 7,600 real estate transaction sides last year, which ranked among the Top 50 nationally.

Mason-McDuffie’s Chairman of the Board Ed Krafchow and Co-CEO Frank Richards will bring 1,900 real estate sales professionals and 36 offices to the Better Homes and Gardens Real Estate network. Known in the industry as a leading innovator, Mason-McDuffie will be able to capitalize on the next-generation broker tools and digital strategies provided by Better Homes and Gardens Real Estate.

“For 123 years, Mason-McDuffie has succeeded through the cycles of growth and challenge in the real estate market with an extraordinary team of agents and managers that support the changing needs of consumers. The market of today is based on a collaborative relationship between agents and clients – Better Homes and Gardens Real Estate is providing the best model in the business for us to thrive in this market as we experience vast growth in California, Nevada and beyond,” said Ed Krafchow.

“Better Homes and Gardens Real Estate understands how to engage consumers in a way that is smart and intuitive. They have a fresh approach to the business that is redefining how we connect with clients, and ultimately how people buy and sell homes,” said Frank Richards.  “We are committed to continuing our company’s legacy of growth and innovation, and to integrating Web 3.0 tools that will help our agents support today’s buyers and sellers,” he added.

With proprietary elements like “social media boot camp” and PinPoint, a direct marketing platform with a database of more than 85 million consumer contacts, Better Homes and Gardens Mason-McDuffie Real Estate’s agents will connect with clients in the ways they prefer to communicate – increasingly via mobile, video and online.

“This affiliation marks the largest franchisee ever to join the Better Homes and Gardens Real Estate brand, as well as the largest in Realogy history,” said Sherry Chris, President and CEO of Better Homes and Gardens Real Estate. Realogy Corporation, a global leader in real estate and relocation services, is the parent company of Better Homes and Gardens Real Estate LLC. “There is a true synergy between Mason-McDuffie’s commitment to innovation and our brand’s reputation for developing next-generation tools and resources. We are pleased to welcome the entire team to our Better Homes and Gardens Real Estate network.”

In conjunction with this announcement, Better Homes and Gardens Mason-McDuffie Real Estate was appointed a co-principal of the Cartus Broker Network, the nation’s leading real estate referral network. A subsidiary of Realogy, Cartus is the premier provider of global employee relocation solutions serving the corporate, government and affinity markets.

In Northern California, Better Homes and Gardens Mason-McDuffie Real Estate serves the following counties: Alameda, Contra Costa, Solano, Napa, Lake, Sonoma, San Francisco, San Mateo, Santa Clara, Sacramento, El Dorado, and Placer. In Nevada, the company serves Washoe, Carson City, Storey, Lyon, Churchill, and Douglas counties.

About Better Homes and Gardens Mason-McDuffie Real Estate

Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. In 2009, the company was named the 19^th largest real estate services firm in the nation, and Number One in the San Francisco East Bay. The company provides comprehensive solutions to home buyers and sellers, and handled more than 7,600 transactions in 2009, generating $2.8 billion in sales. Better Homes and Gardens Mason-McDuffie Real Estate is independently owned and operated and includes joint ventures with partners J F Finnegan Realtors, Highland Partners in Piedmont, Sonoma-Gold in Healdsburg and Tri-Valley Realty in Pleasanton-Hopyard and Ruby Hill. The organization comprised more than 1,900 sales professionals in 36 offices. (Effective September 30^th, the company will operate the website URL of www.bhghome.com).

About Better Homes and Gardens Real Estate LLC

Better Homes and Gardens Real Estate LLC is a dynamic real estate brand that offers a full range of services to brokers, sales associates and home buyers and sellers. Using innovative technology, sophisticated business systems and the broad appeal of a lifestyle brand, Better Homes and Gardens Real Estate LLC embodies the future of the real estate industry while remaining grounded in the tradition of home. Better Homes and Gardens Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. The growing Better Homes and Gardens Real Estate network includes approximately [175] offices and more than [7,000] sales associates serving home buyers and sellers in 20 states: California, Florida, Georgia, Illinois, Indiana, Pennsylvania, Maine, Massachusetts, New Hampshire, New Jersey, New York, Nevada, North Carolina, Ohio, Oregon, Texas, Tennessee, Vermont, Virginia and Washington. For more information, please visit www.BHGRealEstate.com. Better Homes and Gardens Real Estate LLC is a subsidiary of Realogy Corporation, a global leader in real estate and relocation services.

Better Homes and Gardens® is a registered trademark of Meredith Corporation licensed to Better Homes and Gardens Real Estate LLC.

Equal Opportunity Company. Equal Housing Opportunity. Each Better Homes and Gardens® Real Estate Franchise is Independently Owned and Operated.

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here’s a more official definition:

• A homeowner is ‘short’ when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

• Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. Call me to explore your options.

News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time home buyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.

“The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site,” Lemar Wooley, a HUD spokesperson, told REALTOR® magazine Wednesday afternoon.

Under the guidance that’s under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households’ federal tax credit.

The loans were announced on the opening day of NAR’s 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.

When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.

By Robert Freedman for REALTOR® Magazine

Detailed guidance on the federal government’s plan to provide short-term loans to borrowers using the First-Time Homebuyer Tax Credit is expected to be out shortly, but a spokesperson from the U.S. Department of Housing and Urban Development, which is writing the guidance, couldn’t give a firm release date.

HUD policy staff are “still working out the details on it,” HUD spokesperson Lamar Wooley told REALTOR® Magazine today. “So we expect it to be published shortly.”

The short-term loan program, which would effectively monetize the first-time homebuyer tax credit by permitting eligible lenders to make bridge loans collateralized by the borrower’s expected tax credit, was announced by HUD Secretary Shaun Donovan at the Real Estate Summit NAR hosted on the opening day of its 2009 Midyear Legislative Meetings in Washington last week.

At the summit, Donovan said the loans would enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash could be used as a downpayment.

“FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to ‘monetize’ the tax credit through short-term bridge loans,” Donovan said. “We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly.”

It’s unclear at this point what shape the guidance will take and whether authorization for the loans will be available across the board or only in states in which the state housing finance agency already has a tax credit bridge-loan program in place.

There are 10 states today that have such a loan program, according to the National Council of State Housing Agencies: Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, and Tennessee.

You can access details of these loan programs on the NCSHA’s Web site, “First-Time Homebuyer Tax Credit Loan Programs.”

When it’s released, the guidance is expected to be issued as a HUD Mortgagee Letter and will likely discuss which federal, state, and local governmental agencies and nonprofit organizations will be permitted to make the loans, and whether lenders such as FHA-approved mortgagees will be permitted to make the loans.

The guidance could also cover how loan amounts will be limited, what happens if repayment problems occur, and what repayment terms would look like.

REALTOR® Magazine will be checking with HUD regularly on the status of the guidance and will report its availability as soon as it’s issued.

C.A.R. Mortgage Update

This week’s C.A.R. Mortgage Update contains information about mortgage rules for condo owners, foreclosure filings, new foreclosure-prevention projects, and current mortgage rates.

Tougher mortgage rules often leave condo sellers in a bind
The condominium segment of the market accounts for a large number of foreclosures because of its popularity among investors and first-time home buyers. Due to the rising number of foreclosures in these communities, many lenders are looking more closely at the makeup of the entire condo complex prior to extending loans to prospective buyers or to owners wanting to refinance.

New lending guidelines often require higher fees and larger down payments of condominium buyers. Because of the challenges associated with financing condos, some condo owners are finding it difficult to sell their units.

To read the full story, please click here:
http://www.latimes.com

To view additional articles about mortgages, please visit the following:

Foreclosure filings in record jump
To read the full story, please click here:
http://money.cnn.com

Foundation backs foreclosures project
To view the full story, please click here:
http://online.wsj.com

Mortgage rates rise, shy of record low
To view the full story, please click here:
http://www.msnbc.msn.com

Los Angeles Times

House hunting? It’s not a buyer’s market everywhere
Some potential home buyers, especially first-time buyers, may be misinformed about today’s market, believing that all sellers are desperate and will accept any offer. However, in many desirable, middle-class neighborhoods, bidding wars are prominent and buyers often have to make offers slightly above the asking price.

KEEP THIS IN MIND

• Although California’s median home price – the price point where half of the homes sold for higher and half for lower — was 39 percent lower in March than a year ago, many of the sales taking place are in areas, such as the Central Valley and the Inland Empire (Riverside and San Bernardino counties), which have higher foreclosure rates. These regions offer home buyers better opportunities to purchase homes at extremely low prices.

• The housing market is often characterized as having three pricing segments: under $500,000, $500,000 to $1 million, and more than $1 million. Homes in the under-$500,000 segment have accounted for the majority of the state’s price declines thus far.

• As real estate is local, a home in one neighborhood with the same square footage and amenities may not sell for the same price as a comparable home in a neighborhood one mile away. By working with a REALTOR® familiar with a specific area, home buyers should be able to submit reasonable offers that are more likely to receive seller approval.

To read the full story, please click here:
http://www.latimes.com

The Wall Street Journal

A short sale may not mean you’re home free
Some homeowners who sell their homes through short sales are finding their mortgage companies still try to collect some or all of the difference between the bank-approved short-sale price and the outstanding mortgage balance. Some mortgage companies also are taking legal action to recover unpaid amounts after a foreclosure is completed.

KEEP THIS IN MIND

• A lender tactic gaining popularity is for the holders of mortgages or home-equity loans to require borrowers in short sales to sign a promissory note — a written promise to pay back a loan or debt.

• HSBC Finance has implemented a one-year moratorium on the collection of deficiency balances for short sales and foreclosures that occur after April 1, due to the “current economic environment,” according to an official with the company.

• Not all borrowers who sell their homes through a short sale or lose their homes to foreclosure will receive a deficiency claim. Often, mortgage companies don’t try to collect unpaid amounts either because state laws prohibit or limit such actions or the cost outweighs the potential return. California has anti-deficiency rules that prohibit lenders from pursuing borrowers after foreclosure, but California does not have anti-deficiency rules for a short sale.

• The borrower’s situation often is the determining factor in whether the lender tries to collect the unpaid debt or not. The borrower’s employment status, assets, whether the home was purchased as an investment, and the amount of debt owed are taken into consideration.

• It is important that sellers are informed of the lenders requirements, read the fine print, and ask questions when selling their home via a short sale. According to one real estate attorney who represents financially troubled homeowners, every short sale she has worked with has had a promissory note or terms giving the lender the right to collect a deficiency. Often, the terms are buried in the sale contract, according to the attorney.

To read the full story, please click here:
http://online.wsj.com

The New York Times

Where home prices crashed early, signs of a rebound
Hard-hit areas, such as Sacramento, Las Vegas, parts of Florida and California’s Inland Empire, appear to be among the first cities in the nation to reach the early stages of recovery, as investors and first-time buyers compete for bargain-priced foreclosures.

KEEP THIS IN MIND

• By some indications, the market could be close to a bottom. Pending home sales – homes that are under contract, but have not yet closed – and construction spending rose in March.

• When a market reaches bottom, foreclosures usually stop piling up and banks become more willing to issue loans, confident that the collateral backing them will not continue to decrease in value.

• The first-time home buyer tax credits from the federal and state governments, coupled with favorable home prices and near record-low interest rates, led to an increase in home sales in March. Sales of existing, single-family homes rose 63.8 percent in March compared with the prior year. Monterey County reported a sales increase of 248.7 percent and the High Desert region saw sales increase 172.7 percent compared with last year, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

• The median price for the state also increased in March, rising 2.2 percent in month-to-month comparisons. March marked the first monthly increase since August 2007, while the statewide median price has remained in the $250,000 range for the past three months.

To read the full story, please click here:
http://www.nytimes.com

In Other News…

CNN

Optimism about economy grows – poll

To read the full story, please click here:
http://money.cnn.com

Los Angeles Times

Credit unions are a good alternative to banks

To read the full story, please click here:
http://www.latimes.com

CNN

Surprise rise in construction spending

To read the full story, please click here:
http://money.cnn.com

San Francisco Chronicle

Pending home sales up 3.2 percent in March

To read the full story, please click here:
http://www.sfgate.com

The Wall Street Journal

Tax hits on property short sales

To read the full story, please click here:
http://online.wsj.com

San Francisco Chronicle

Home buyers can get early access to tax credit

To read the full story, please click here:
http://www.sfgate.com

The Wall Street Journal

First housing markets to heal? Analyst bets on Sacramento, Washington

To read the full story, please click here:
http://blogs.wsj.com

Los Angeles Times

Bernanke: Economy should grow again later in 2009

To read the full story, please click here:
http://www.latimes.com

What you should know about the market…

• Many municipalities now offer access to public records databases, enabling homeowners to obtain a copy of a deed quickly and without visiting a local public records office. Users can search for deeds and print out non certified copies at home. The document may provide helpful information for estate planning and tax issues, including the purchase price or the nature of the owners’ title. Certified copies of deeds can be ordered via mail from most public records offices for a nominal fee, or obtained in person.

• Many homeowners who purchased homes as short-term investments during the height of the market are underwater and/or in foreclosure. According to Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley, consumers should purchase homes as places to live, rather than view a home purchase as a short-term investment opportunity.

For a market overview of single-family detached home sales in the first quarter, click to view the following PDF document: q1-09_san-mateo

For the third consecutive quarter, investors and first-time buyers seeking bargain-priced homes found them in the form of pre-foreclosure, short sales, and bank-owned REOs located in the more affordable northern and southern cities of San Mateo County, according to a report by the research division of Prudential California Realty based on an analysis of MLS data.

Countywide, sales of existing single-family detached homes in the first quarter of 2009 fell a modest 4 percent from the same period in 2008. However, the median price of a home sold during the first quarter declined from $1,191,713 a year ago to $710,721, a 40 percent plunge foreshadowed by a dramatic slowdown in sales of higher-priced properties and the lack of mortgages available on homes priced above $750,000. Home sales in Half Moon Bay, for example, fell by 65 percent from last year, while Hillsborough and Woodside sales dropped 64 percent and Atherton fell 46 percent. In these markets, sales of homes priced above $2.3 million were a rarity in the first quarter, sending the median price sharply lower in Atherton (-68%), Portola Valley (-43%) and Woodside (-37%). The exception was Hillsborough, where the median sales price slipped by only 1 percent.

By contrast, the lower-priced segment of the market continued to be dominated by investors willing to purchase property with cash or make a hefty down payment on bargain-priced foreclosures and bank REOs in communities like East Palo Alto (sales up 257% from the first quarter of 2008), South San Francisco (up 65% from a year ago) and Daly City (up 26%). Other communities experiencing an uptick included Pacifica (+11%) and San Mateo (+7%). More recently, sellers in these communities have been receiving multiple offers on properties, an early sign the market may be improving.

Looking ahead, continued interest from cash-rich investors, extremely favorable interest rates and the new $8,000 federal income tax credit for first-time home buyers are likely to boost sales in the lower third of the market. However, barring significant improvement in the economy, sales in moderate and higher-priced neighborhoods will continue to be constrained for the foreseeable future.

Homeowners have questions all the time on what they should do if their mortgage is more then what the current market value is. Here are seven options to consider. Everyone’s situation is different. This report is only a guide. It should not be a substitute to talking with your CPA/attorney about your individual situation.

OPTION 1: Pay down/Sell
This is an option if you have money to spare. We can sell your home and you pay the difference between what your house sells for and what you owe your lender. The positive to this is you can keep your credit intact. The negative is that you need disposable dollars to do this.

OPTION 2: Short Sale
A short sale is where we will sell your home for less than what you owe. We need to negotiate with your lender(s) to accept less than what you owe. It will make a difference if your loan is a purchase money (non-recourse) or non-purchase money (recourse). Note: There can be tax ramifications depending on if you have a recourse or non-recourse loan. We can explain the difference if you give us a call. The positive is that you can pay off your loan(s) without any money out of your pocket. The negative depends on how many payments you missed. It can reduce your credit score 50-150 points. *

OPTION 3: Walk-away/Foreclosure
This is a situation where you just walk away from your house. You can still have negative tax consequences and it can affect your credit by approximately 250 points. In most cases, a short sale is a better option. *

OPTION 4: Bankruptcy
Sometimes you will be advised to file bankruptcy. In a lot of cases, people will suggest this because they do not know about other options as mentioned above. This should be a last resort. It can affect your credit by approximately 400 points and your credit for the long-term. *

OPTION 5: Deed in Lieu of
This is a situation where you basically hand the keys over to your lender. In most cases, the last thing your lender wants is the property back, and if they do, it is normally prior to foreclosure. At this point, your credit is probably already negatively affected. If you were current with your payments, why would your lender take the property back?

OPTION 6: Loan Modification with your Lender
This is a situation where you want to stay in your property, but can’t afford your current payment(s). The lender might renegotiate interest rates or reduce your payment and add it on to the back end of your loan.

OPTION 7: Rent
You can rent your property out until the market turns upwards. In most cases, there will be a negative between the rent and your loan payment(s). Most of the experts feel this market will take 2-4 years to turn-around. You should be prepared to rent out your property a couple of years.

*(Reductions to credit scores are estimates only. Individual situations will produce varying results).

Bankers Preferred is the quality provider of comprehensive and customized financing solutions for homeowners. We exceed the expectation of our clients and professional partners through superior knowledge and transactional excellence. Our extensive network of lenders allows us to match clients with programs and rates that meet their long and short term financial goals. Our commitment to our clients shows through our hard work, open communication and fiduciary diligence.

Since 1993 Bankers Preferred has been committed to helping individuals and families make the dream of home ownership a reality. Since its inception, Bankers Preferred has funded in excess of one billion dollars in home loans. Each year we help hundreds of families with our exceptional service and competitive programs.

· Enthusiasm working for you
Helping people make one of their most important decisions is a serious responsibility, but something that we enjoy doing. This enthusiasm and hard work will benefit you and help reduce the stress and anxiety often associated with real estate transactions.

· Established Credibility
We have many years of experience and knowledge working in this industry. We can say with confidence that we’ll get the job done right.

Call me today for more information