LENDERS TO HALT FORECLOSURE EVICTIONS OVER THE HOLIDAYS

Fannie Mae and Freddie Mac will suspend foreclosure evictions from December 19, 2009 through January 3, 2010.  To help struggling families over the holidays, both owner-occupants and tenants living in properties foreclosed upon by Fannie Mae will not be evicted.  Freddie Mac's suspension of evictions will be limited to properties up to four units.

In a similar move, Citigroup Inc. will suspend foreclosure sales and evictions for 30 days through January 17, 2010 for loans it owns.  Citigroup's foreclosure moratorium, however, does not extend to loans it services on behalf of other investors.  Given these developments, other lenders may follow suit, so check with the lender if appropriate.

Are you tired of competing for homes and being frustrated by multiple offers and homes selling in one to 10 days? The 203k loan program may be you answer. Many Stockton homes for sale in the 1st time buyer’s price range are short sales and foreclosures in need of repair before the bank will loan. The 203k an FHA loan enables home buyers to buy and rehab homes for sale wrapped in one loan. This is a hybrid loan created in 1978 by the federal housing administration it’s intended for home owners that intend to live in their home. This unique and innovative program provides for funds to purchase a home and make repairs and improvements.

There are numerous homes for sale in the Stockton Real Estate Market that are in need of repair and this brings opportunities for the 1st time home buyers and those where conventional mortgages are out of reach. Many buyers in search of homes in Stockton don't have the 20 to 25% put down on a home and often have less than perfect credit scores. The good news is that with less than perfect credit and as little as 3.5% down payment you can qualify for an FHA loan.

The process for the 203k loan is a little more complicated than financing a home in good shape. You must get estimates from a licensed contractor and put together a package to submit to a lender to secure an FHA mortgage approval. This provides a lot of opportunities for the buyer and it helps revitalize our community. The process requires that you put an experienced Realtor and Lender on your team. The Hugh Lilly Real Estate Group at PMZ Real Estate can walk you through the process and direct you to the right lender and contractor. Call Hugh at 209-479-922 or e-mail him at hlilly@pmz.com .

Good news for those home owners underwater in their mortgages. For many buyers and home owner short sales have been frustrating; with their long wait times for approval. Loan modifications have been equally frustrating.  Short sales can have the effect of preserving the home owners’ credit rating. Lenders still suffer large losses but with short sales they usually have a better outcome for the community, lender and home owner. When a home goes into foreclosure it usually stays vacant for a long period of time and the home suffers from maintenance issues and is a magnet for vandalism and squatting.

The US treasury has issued new guide lines to mortgage companies to improve approval times and to reduce foreclosures.

The new requirements include the following guidelines:

1. Transaction must fully release the borrower from the debt
2. Mortgage servicers have 10 days to approve a short sale
3. 2nd lien holders or lenders to be capped at $3,000

The treasury is just not issuing requirements they are also offering incentives. They have expanded their HAMP program to short sales. The home owner would receive $1,500 in relocation expenses, $1,000 to mortgage servicers, $1,000 to investors who agree on payments to junior lien holders.

In terms of best practices and common sense these new requirements and incentives should help the home owner, buyers and the community and clear the deck to close many more short sales and help return the market to normality.

The Hugh Lilly Real Estate Group at PMZ Real Estate is short sale certified and has successfully negotiated a number of short sales. We’re committed to delivering helping the home owners in the communities of Stockton, Lodi, Lathrop, Tracy and Manteca. Call Hugh at 209-479-9222 for your private consultation or email us at hlilly@pmz.com.

Mortgage interest rates are at some of the lowest rates in years. It's important to keep an eye on mortgage rates. Rates are subject to volatility as the economy expands and contracts and with the latest economic news. The best interest rates are the picture we have now. A rise in rates can add thousands of dollars over a 30 year mortgage and it is often good to lock in your rates when you apply for you mortgage.

Current Interest Rates 

• Conventional     30 Year Fixed     20%   Down   5.0%
• Conventional     30 Year Fixed     10%   Down   4.87%
• Investment        30 Year Fixed     25%   Down   5,25%
• FHA                 30 Year Fixed    3.5%   Down   5.25%
• VA                   30 Year Fixed       0%   Down   5.25%

Things You Should Not Do While Buying or Refinancing Your Home 

• Don't change your job or change industries
• Don't miss paying your bills on time
• Don't transfer large sums of money between you bank accounts
• Don't buy a new car
• Don't open new credit lines or credit card

 If you don't have a lender or need to be pre-qualified call Hugh Lilly for a referral to a lender, call Hugh Lilly at 209-479-9222. Don't forget to ask about the 1st Time Buyer’s Tax Credit. Visit www.hughlilly.com for more information.

Great news for the Stockton Real Estate Market. Pending home sales have for the last 9 months risen. For October 2009 pending home sales increased 3.7% to an index value of 114.1 from 110 in September 2009 and is 31.8% above October of last year when the index value was 86.6 according to the National Association of Realtors. This is the biggest annual jump since March 2006.

This is good news, but what does it mean for the home buyer? Because of the low inventory approximately 2.7 months of inventory in the Stockton and San Joaquin County the competition for homes for sale is extreme; homes are selling in 1 to ten days with multiple offers. Many buyers are experiencing frustration and especially 1st time home buyers. There are a lot of factors favoring the 1st time home buyer: low interest rates, great purchase prices and the $8,000 1st Time Buyer's Tax Credit.

What is the best way to go about purchasing real estate for the first time home buyer?

1. Find an experienced Real Estate agent and learn about the home buying process
2. Become pre-qualified for a mortgage, your Realtor can help you with a referral to a loan officer
3. Make a list of what you want in a home
4. Don't procrastinate

I can't stress enough how much an experienced agent can mean in finding and purchasing a home. Communication and attention to detail is one of the most important attributes of a Realtor. The real work starts after the sale pulling all the pieces together and completing the sale and achieving you goals.

Hugh Lilly at The Hugh Lilly Real Estate Group at PMZ Real Estate has been helping buyers and sellers for over 28 years. Call Hugh at 209-479-9222. Good luck and good hunting for the perfect home. WWW.hughlilly.com .

The 1st Time Buyer's Tax Credit has been given a reprieve but don't let the deadline sneak up on you. Buyers must have their new home in contract by April 30, 2010 and the sale must close by June 30, 2009. 1st time buyers are defined as those not having owned a home in the last three years. The tax credit is 10% of the home price up to $8,000. To be eligible the tax credit phases out for single individuals earning $125,000 and for people filing joint returns $245,000. The extension of the Tax Credit is also extended to other buyer's as well. For move up buyers the credit is up to $6,500. It is very likely that this credit won't be extended again.

The tax credit has already stimulated the real estate market nationwide but more importantly in Stockton and San Joaquin County one of the hardest hit area in foreclosures and a decline real estate values. The market in Stockton has surged and is estimated to have resulted in a 10% increase in home sales. That is a reason for buyer's not to procrastinate; our inventory of available homes is approximately 2.7 months and that is extremely low. More often than not buyers are competing for homes. Existing homes are selling in one to ten days with multiple offers. The biggest myth is that this is a slow market and it is not for buyers. It's not great for sellers because of the decline in the values of their homes

If you are serious about taking advantage of the tax credit we urge you to take the following steps:

• Start you house hunt early by becoming pre-qualified for a loan. Most sellers won't look at an offer without a prequalification letter.
• Interview and create a relationship with an experienced Realtor.
• Make a list of what you want in a home.
• Be ready to look at houses at a moment’s notice, the competition is fierce. Homes are not staying on the market very long.
• If you see that house that grabs you when you walk in the door make an offer or another buyer will.

The Lilly Real Estate Group at PMZ Real Estate is ready to assist you in the purchase of a new home. Hugh Lilly has over 28 years of experience and knows real estate. Call him at 209-479-9222 or e-mail Hugh at hlilly@pmz.com. 

Successful buyers in today's real estate market are informed buyers. There has not been a better time to buy than today. Interest rates are low, purchase prices for homes in Stockton, Lodi and San Joaquin are at an all time low and with the addition of the 1st time home buyer’s tax credit up to $8,000 and $6,500 for move up buyers the timing could not be better. The mortgage market has several options with low down payments. FHA loans have down payments as low as 3.5% and in some cases close to zero down payment, VA loans qualify for a zero down payment.

Interest rates have remained stable as of November interest rates are averaging:

• FHA                   3.5% down       30 year      5,.250%
• VA                      0%   down       30 year      5.250%
• Conventional     10%  down         30 year      5.375%
• Conventional     20%  down         30 year      5.000 %

The best interest rates go to those with the best credit scores. Having a lower credit score can not only deny you credit but cost you severely financially. Protecting your credit is paramount to the loan process. Bad credit can be repaired. The following steps can help you improve your credit score:

• Pay all past due accounts
• Get rid of late payments talk with your creditor
• Request your creditor to increase credit limits every 6 months only if they do not need to run a credit check each time
• Do not close old credit accounts, keep them active

It is important to actively use you credit but wisely. Be disciplined when you borrow and pay accounts off immediately. Keep your credit balances to less than 30% of your credit limits. Increasing you credit score by as little as 20 points can save you substantial amounts over a thirty year mortgage.

At the Hugh Lilly Real Estate Group at PMZ Real Estate we can walk you through the process of obtaining a mortgage and help you find that home that fits your needs. Call Hugh today at 209-472-9222 or visit his web site at www.hughlilly.com .

Homebuyer Tax Credit Extended and Expanded!

Great news for the first time home buyer and our local economy. Last week, a new Homebuyers Tax Credit bill was signed into law. The bill extends the tax credit for first-time homebuyers, as well as opens it up to current homeowners who are looking to buy. And even if you aren't looking to purchase  please pass on this article to anyone you think might be in the market to do so. This is information that might benefit them greatly, and I'll be happy to be of service to them.

Here is a brief overview of the Homebuyers Tax Credit and its benefits based on the new bill.

Tax Credit for First-Time Homebuyers

First time home buyers may be eligible for the tax credit. The credit f is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Homeowners

The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.

What's So Great About a "Tax Credit"?

The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction", or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sales price of $800,000.

Remember, the new tax credit program includes a number of details and qualifications. Call or email today if you have questions or would like to see if you can benefit from the tax credit...and email this article along to anyone else you feel it might benefit as well! Call Hugh Lilly at 209-479-9222 or visit my web-site at www.hughlilly.com.

The perfect storm has been created favoring buying: low Stockton real estate prices, low mortgage interest rates and the $8,000 1st time home buyers tax credit. The big question is how do you start the process? Buying a home is an emotional process taking the right steps and preparing can take a lot of the stress out of the process. 

1. The first step is find a real estate professional that is experienced and is someone you can connect with. The ideal real estate agent will communicate, provide timely and valuable information to guide you through the process
2. The second step is to investigate a mortgage. Most sellers will not even look at an offer until you have been prequalified. Interest rates are important but service is the most important factor. Can you loan officer guide you through the loan process and make it possible for you to own? Experience counts, at The Hugh Lilly Real Estate Group at PMZ we can introduce you to several loan officers that are true professionals.
3. Consider where you want to live, what you housing needs are and you monthly housing budget.
4. Keep in mind that no house is going to be perfect, make a list of your top priorities. Location, schools and size are usually your most important considerations.

Navigating the real estate market in Stockton searching for that perfect home can be confusing and that’s where an experienced Realtor can help you achieve your goal of home ownership. There are literally 100’s of homes in Stockton for sale. I would be happy to set up a custom search for you that would focus on what you are looking for and meet your needs and update you daily as new homes come on the market.

Contact Hugh Lilly at 209-479-9222 or contact me at Hugh@hughlilly.com .

The inventory for homes in San Joaquin County has decreased from the same time last year by 70%. In September of 2008 there were 5,000 plus homes for sale a 1,500 pus homes for September 2009 according to Metrolist MLS. This is having a direct impact for buyers. Many listings are receiving multiple offers and being sold at above asking prices. Inventory of homes in Stockton has decreased from 2,700 plus to 744 homes for sale. Homes in Lodi for sale have decreased from 451 listing to 286 homes for sale.

There are three types of listing for sale REO (foreclosures), Short Sales, none-REO home sales. The current mix of MLS listings for sale in San Joaquin County is 23% for foreclosures, 34% for Short Sales and 43% for non-REO and Short Sales. The indications are that regular seller's are coming back into the real estate market. The measure of any real estate market is homes selling and closing escrow. The current mix of MLS listings sold in San Joaquin County is 62% for foreclosures, 15% for Short Sales and 23% for non-REO and Short Sales. The hottest market for homes for sale is properties less than $300,000.

Many of the real estate sales in Stockton and Lodi have been driven by the $8,000 first time home buyers tax credit. This tax credit is slated to expire on November 30th although congress is actively moving forward to extend the tax credit for another six months and perhaps making it available for all buyers.

Steps to take to meet the November 30th deadline:

• Finding a Realtor
• Shopping for a mortgage
• Searching for homes that meet your needs
• Making an offer
• Inspections and appraisal

First time home buyers in Stockton and San Joaquin County have never been in a better position to buy a home. The chief advantage is the low purchase prices and interest rates of around 5.875%, low down payments and the First-time Home Buyer's $8,000 Tax Credit. Home buyers are able to access a mortgage for as little as 3.5% down for FHA loans and zero down for VA loans. Just as we have helped others we can help you, we have some great neighborhoods in Stockton: Spanos Park, Weston Ranch, Brookside, Morada and many other fine addresses. Call us today at 209-479-9222 or visit us at www.hughlilly.com and we will put you into your 1st home.

The upward trend in home sales is national in scope but alive in Stockton. September was strong for existing home sales. This real estate market activity was largely driven by first-time home buyers. According to the National Association of Realtors September was the fifth month of gains. In the Western United State home sales surged 13% in September and 5.7% over last year.

Stockton Statistics for September 2009

• 6,691 homes in Stockton were sold during the last 12 month period, this average 558 homes per month compared to 350 homes per month in 2008.
• At the end of September there were 1,941 homes for sale in Stockton including 816 pending home for sale with a inventory of 1,125 for sale.
• This leaves an 2 month inventory after adjustments for pending home sale.
• There were 511 homes sold in Stockton for the month ending in September.
• The average price for existing homes sold was $138,000 or $80 per square foot.

Inventories are tight but there is the expectations that inventory will increase in the near future with regular sellers coming into the real estate market and a flood of foreclosures on the horizon.

If you’re considering selling your home The Hugh Lilly Real Estate Group at PMZ Real Estate is your best bet, we are the largest real estate company in the Central Valley San Joaquin County and Stockton. Our marketing plan is second to none bringing you the results you expect and deserve. Call Hugh Lilly at 209-479-9222 or visit www.hughlilly.com for a free home evaluation and custom marketing plan.

The Senate is considering extending the $8,000 1st Time Homebuyers Tax Credit said  Senator Chris Dodd Chairman of the Senate Banking Committee. The discussion centers on whether it will be extended to March or June of 2010. It looks like there is enough momentum to get this done in the near future. The tax credit has been a boon the real estate recovery. This is good news for buyers as well as the economy. This is one stimulus that directly benefits buyers and local economies instead of big banks.

The combination of low interest rates, the 1st time home buyer's tax credit and some of the lowest prices for homes in years have created the perfect conditions to purchase a home. The Stockton Real Estate Market has benefited tremendously from this surge in 1st time buyer activity. 1st time home buyers account for up to 30% of July home sales. For 1st time home buyers there probably has never been a better time to become a homeowner. The time to act is now. We can only see the picture we have now.

Good news for sellers, the annual rate for of decline in home prices is trending towards improvement and the decline has slowed. California has seen positive movement in the last few months. Some experts claim we are very close to the bottom.

Regular sellers are coming back into the real estate market that has been dominated by foreclosures and bank owned homes. While it has been a shock to many homeowners that the value of their homes has decreased, They are becoming more realistic about the value of their homes. The statistics from a national survey conducted by Home Gain indicated that 36% of home owners think that their homes should be listed 10 to 20% higher and this is down from 45% of seller's in the first quarter of 2009.

There are good reasons for seller's coming back into the market. Many home owners are experiencing life changes: retirement, relocation because of job changes, family changes and pent up demand. Many home owners are taking advantage of the lower purchase prices on their dream home. While the foreclosure rate is terrible we have to remember that over 97% of home owners are keeping their mortgages current and a great many own their homes out right. Another good reason to consider selling is interest rates are reasonable for you new purchase. Interest rates as of October 26th were 5.125% for conventional loans with 20% down and 5.25% for FHA loans with 3.5% down.

Homeowners considering selling need to do their homework and see how their particular situation is suited to selling. The first step is to evaluate the value of their home in today's real estate market and their equity and prequalify for a loan for a new purchase. The second step is to decide how they will market their home and research experienced real estate agents in their area. The third step is to make the decision to list their home for sale. Call Hugh Lilly at 209-479-9222 or visit www.hughlilly.com and request a free market analysis of you home and a customized marketing plan.

Home sales are rebounding in many of the real estate markets across the U.S.  Existing home sales jumped to a seasonally adjusted 9.4% in September and 15.4% in the West. This is the highest level in over 2 years. There are good reasons for this surge: the $8,000 first time buyer’s tax credit, low interest rates and a lack of inventory. Wells Fargo posted these interest rates on Friday the 23rd of October. One of the things I watch for regarding a possible housing bottom are daily mortgage rates. Below is list of Mortgage Rates from Wells Fargo.

It is difficult to predict a housing bottom?  It is important to monitor daily mortgage rates and lock in loan at an appropriate time after consulting with your Realtor and mortgage professional.

Loan Type              %Rate               APR

30 year fixed           5.0p%               5.191%

30 year FHA           5.50%               6.25%

Jumbo Loan Rates

30 year fixed           5.750%             5.895%

5 year arm              5.00%               4.176%

The Hugh Lilly Real Estate Group at PMZ Real Estate will keep you updated weekly on current interest

When I meet new Real Estate clients relocating to the Stockton and Lodi area I introduce them to our wine country.   Lodi has a lot to be proud of and one of them is their wine with over 60 wineries. It is rapidly becoming a destination point for wine lovers. Lodi is in the heart of wine country in San Joaquin Country and Northern California. Lodi offers world class Zinfandel our appellations will not disappoint the most sophisticated wine lover. Visiting Lodi wineries and tasting rooms hosted often by the wine maker will be a delightful experience. They are eager to introduce you to the region and its wines. The best way to begin your tour of our wineries is to visit the Lodi Wine and Visitor's Center a get a tour map, learn about our wine festivals and get an overview of our wine country and then head out for a unsurpassed tasting experience. Visit http://www.lodiwine.com/ for more information.