Realty World Tri-Shasta

Recently the Shasta County District Attorney’s Office sent out a press release regarding their Real Estate Fraud Unit. This press replease discussed the annual report, the fees collected, the number of complaints received, its

District Attorney Jerry Benito

 public relations, and the most common scams.

The Real Estate Fraud unit was formed last summer and upon The Board of Supervisors approving the new program, they also approved for it to be funded through the fees collected through certain real estate documents that were recorded through the assessor’s office.

The total amount of fees that were collected over the fiscal year totaled more then $80,000. Ten percent of that amount went to the Assessor’s-Recorder’s office to reimburse them for incured expenses, the remaining $80,000 was given to the investigation postition at the District Attorney’s Office.

Since the beginning, even a little bit before, the creation of this department, right around 66 calls of complaints have been received. Some cases have lead to criminal prosecution, some have been referred to other jurisdictions (where the case joined to other cases against the same suspect who was already under investigation within that jurisdiction or had already been prosecuted within that juridiction), some have been referred to the California Department of Real Estate based on the unethical behavior of realtors, and some in some other cases the investigator intervened on behalf of local citizens and was able to recover money that was paid to loan modification companies.

The public outreach programs that the Real Estate Fraud Unit have been involved in are: Press releases, radio appearances, and presentations to groups. The District Attorney Jerry Benito has also met with U.S. Attorney Benjamin Wagner to coordinate efforts related to mortgage fraud here in the Shasta County area.

There are two scams that have been the most common – Nigerian Rent Scams and Loan Modification Scams.

The Nigerian Rent Scam is where criminals in Nigeria surf the Internet for homes that are for sale. They then take the information regarding that listing and create a rental ad for that same property. The Nigerian claims that they

District Attorney Investigator Bob Angulo

are out of the area for work, offers to rent the property, and requests a deposit. After the interested party sends them the deposit, they then learn that the property is not for rent – not even owned by the person they were dealing with.

The Loan Modification Scam is where a company offers to assist troubled homeowners to modify their home loan. These companies will often request an upfront fee to perform their services – many of these companies are out-of-state. After sending of the fee the homeowner may see delays, little work, never see a modification, and they will not see their money paid upfront. Under California law, loan modification companies are not allowed to charge an upfront fee. It is also important to know that even while working with a loan modification company, your home is still at risk for foreclosure. Remain in close contact with your lender during the loan modification.

• Forebearance – lender may allow the borrower to skip a payment or make a partial payment if the borrower can suggest a reasonable plan to catch up on the amount in arrears.
• Reinstatement – borrower agrees to make a lump sum payment in the future to bring the mortgage current.
• Repayment Plan – lender may allow the borrower to catch up on what is owed by increasing the monthly payments until the missed payments are brought current.
• Loan Modification Plan – Modify a mortgage – converting it to a fixed rate mortgage at a lower interest rate and extending the years of the mortgage to reduce monthly payments. Giving more years to pay off – adding the missed payments to the balance of the mortgage.
• Forgiving Part of the Loan – makes payments affordable.
• Deed in Lieu of Foreclosure – it is a friendly foreclosure, the loan amount must be lower than the anticipated sales price.
• Cash for Keys – the lender and the homeowner agree to exchange cash from the lender for the keys to the property.
• Sell the Home – set a price that will attract many qualified buyers. Upside down property – the financial institution may be willing to forgive some of the mortgage to make a sale possibly in order to avoid foreclosure – Short Sale.

• Credit card debt is out of control.
• Paying for necessities with credit cards.
• Cannot meet monthly financial obligations.
• Borrowing from friends and family.
• Loss of employment or reduction in hours or wages.
• Major illness which can cause loss of work and increase in health expenses.
• Divorce, separation or other traumatic family or personal situations.
• Death of a spouse or significant other.
• Cannot pay the new Adjusted Payment on the ARM mortgage loan.
• Major unbudgeted maintenance expense.
• Excessive debt is the number one cause of financial collapse and foreclosure.

Distressed properties are foreclosed homes or homes in a Short Sale situation. We have both available in the Shasta County real estate market. Here are some tips to help buyers who are looking to purchase a distressed property.

1. Have the money before you shop.
2. Be mentally prepared for delays, aggravations, and red tape.
3. No contingencies.
4. Flexibility as to the condition of the property.
5. Be prepared to make an offer.
6. Motivation rules the day.
7. Buy at the bottom of the market.
8. Quick settlement.
9. Inspections.
10. Examination of title.

Southern Shasta County and Northern Tehama County Real Estate

Sorry I have not blogged withing the past few weeks. I found out I was pregnant, which was some great news, and everything got a little hectic after that. I just wanted to let all of my readers know that I was think of you and felt guilty that I had not posted any new material to read. I will try my best from now on to continue to post new articles at least once a week. Now, shall we continue with this weeks market analysis?

Anderson (Including Happy Valley)

There is currently 113 active listings in the Anderson area. The average days on the market is currently sitting at 134 days. The low price is $69,900; the high price is $2,400,000; the average price is $322,602; and the median price is $209,900.

There is currently four listings available for under $100,000; there are 49 listings between $100,000 and $200,000; there are 24 between $200,000 and $300,000; 18 between $300,000 and $400,000; five between $400,000 and $500,000; three between $500,000 and $600,000; three between $600,000 and $700,000; one between $700,000 and $800,000, none between $800,000 and $900,000; one between $900,000 and $1,000,000; and five above $1,000,000.

There were 20 new listings within the past week, list prices ranging from $79,000 to $479,000. There is currently 54 listings in escrow, list prices ranging from $28,000 to $649,000.  There was four closings within the past week, list prices ranging from $ 143,900 to $199,900 and sales prices ranging from $138,000 to $206,000.

Cottonwood (Including Lake California)

There is currently 149 active listings in the Cottonwood area. The average days on the market is currently sitting at 152 days. The low price is $44,275; the high price is $1,395,000; the average price is $252,359; and the median price is $214,000.

There is currently five listings available for under $100,000; there are 69 available between $100,000 and $200,000; 47 between $200,000 and $300,000; 13 between $300,000 and $400,000; seven between $400,000 and $500,000; two between $500,000 and $600,000; three between $600,000 and $700,000; one between $700,000 and $800,000; none between $800,000 and $900,000; none between $900,000 and $1,000,000; and two above $1,000,000.

There were 27 new listings within the past week, list prices from $44,275 to $469,900. There is currently 32 listings in escrow, list prices from $97,800 to $739,900. There were three closings within the past week, list prices from $160,000 to $206,900 and sales prices from $140,000 to $205,000.

• Be proactive about the problem when the first warning signs appear.
• Contact your lender when you become aware that you have a problem.
• Read the mail.
• Contact HUD approved housing counselor or call a real estate agent for advice.
• Prioritize your spending by paying for the necessities of life first.
• Look for ways to generate cash.
• Do not get scammed by a private “foreclosure prevention specialist.”
• Make an appointment with a real estate agent to discuss the problem and to get their advice.

Southern Shasta County and Northern Tehama County

Anderson (Including Happy Valley)

There is currently 117 active listings in the Anderson area. The average days on the market is currently standing at 126 days. The low price is $73,300, the high price is $2,799,000, the average price is $300,992, and the median price is $200,000.

There are currently three listings available for under $100,000; there are 55 between $100,000 and $200,000; 23 between $200,000 and $300,000; 19 between $300,000 and $400,000; five between $400,000 and $500,000; three between $500,000 and $600,000; three between $600,000 and $700,000; two between $700,000 and $800,000; none between $800,000 and $900,000; one between $900,000 and $1,000,000; and three for above $1,000,000.

There were 15 new listings on the market within the past week, list prices ranging from $115,000 to $321,950. There is currently 50 listings in escrow, list prices ranging from $28,000 to $649,000. There were three closings within the past seven days, list prices ranging from $165,000 to $198,900 and sale prices ranging from $166,000 to $198,900.

Cottonwood (Including Lake California)

There is currently 142 active listings on the market in the Cottonwood area. The average days on the market is currently standing at 159 days. The low price is $44,275, the high price is $1,395,000, the average price is $268,625, and the median price is $219,950.

There is currently two listings available for under $100,000; there are 60 between $100,000 and $200,000; 48 between $200,000 and $300,000; 13 between $300,000 and $400,000; nine between $400,000 and $500,000; four between $500,000 and $600,000; three between $600,000 and $700,000; one between $700,000 and $800,000; none between $800,000 and $900,000; none between $900,000 and $1,000,000; and two for above $1,000,000.

There were 20 new listings on the market within the past week; list prices ranging from $109,900 to $549,000. There is currently 40 listings in escrow, list prices ranging from $97,800 to $739,900. There were three closings within the past seven days, list prices ranging from $165,000 to $224,900 and sale prices ranging from $165,000 to $227,000.

1. If the Seller is current with their payments even though they may be upside down in their home.
2. When there is no real hardship that has caused the delinquency of payments.
3. If the property is a second home or an investment property. There have been some exceptions.
4. When the Seller has filed for bankruptcy protection under Chapter 7 or Chapter 13.
5. A recent cash-out refinancing of the home prior to the Seller deciding to sell the home or the Seller has recent Home Equity Line of Credit.
6. When the proceeds of the sale are not sufficient to satisfy the Lender in the first position and giving sufficient percentage to those junior liens after all closing costs are paid in full.
7. Clouds on the title due to outstanding liens.
8. The time frame for the sale process is not adequate to complete the sale.
9. The Seller has access to enough funds to be able to satisfy the outstanding debt from the proceeds of the sale of the home.
10. The Seller wants to receive monies from the sale of the home after the discounted payoff to the Lender and all closing costs.
11. Potential zoning or building code violations.
12. The Short Sale Submission Package is incomplete.

Here is some great news for those of you who are buying real estate here in Shasta County. The U.S. Senate, on Wednesday, approved the extension of the tax credit for homebuyers.

An amendment was added to the $140 billion tax bill that renews a series of tax credits – continues federal programs such as the jobless benefits and flood insurance program, boosts fiscal aid to states and averts reductions in payments to doctors who treat Medicare patients.

As is already known, this tax credit provided buyers up to $8,000 for first-time homebuyers and up to $6,500 for those who are looking for buy another home as their primary residence. Under this new amendment the purchase contract still had to have been entered into by April 30 to qualify but buyers now have till September 30 to close the transaction.

• It is estimated that the average cost of handling a foreclosure for the financial institutions is right around $50,000.
• REO properties sell for more than comparable Short Sale properties because of the cost incurred by the financial institution in acquiring the property.
• Disclaimers on REO properties are not available from the lender because they cannot represent the condition of the property or neighborhood information.
• The average REO listing is for 90-days, this is based on a national average not the Shasta County real estate market.
• Most REO properties are sold in “As Is” condition.
• REO purchases are less of a risk than buying at a foreclosure auction, but contain considerably more risk than a Short Sale.
• REO properties can usually be purchased faster with less problems than a Short Sale.
• REO properties are usually priced to sell. Making ridiculously low offers is a waste of time and may not elecit a counter offer.