Coachella Valley Voice

The Smart Way To Go From Renting To Owning

2011-08-31T15:49:00.000-07:00

If you've watched any news media over the past few years, you know that the housing market is sluggish. From a seller's viewpoint, that makes life a lot harder. But for a buyer, it can mean a wider world of options and opportunities. For those want to become owners rather than renters, it's important to make smart decisions.

Many factors contribute to the real estate market's current sluggishness, and one of them is the fact that lenders are reluctant to give loans to homebuyers. After the housing market crisis, it's not surprising that they would be more demanding in their lending practices, but for those eager to buy, it means that you need to present an immaculate financial profile.

There's no limit to the amount of real estate browsing you can do - either online or in your ideal neighborhood - but before you get serious about purchasing a home, take these tips into consideration.

* Pay down your debt. Before you even apply for a mortgage, it's important that you reduce your debt load. The smaller it is, the better for your debt-to-income ratio, which lenders use to determine how much they'll allow you to borrow. Items like car loans, child support and alimony, credit card bills and student loans are all factors that the lender will consider. Paying down debt can have the added benefit of improving your credit, as well.

* Check up on your credit. Having good credit is another essential element in smart home buying - it can affect how lenders view you, and the terms of your mortgage. The better shape your credit is in, the better your potential to get the mortgage of your dreams. Every year, you're entitled to a free credit report from one of the three major reporting agencies, like Equifax. Use it as a starting point that will give you an idea of your overall credit picture. Look for areas that can be improved upon and track your progress by checking your credit again after you've put in some work to bring it up.

* Make the biggest down payment possible. The era of zero-down is over, and for good reason. A down payment - and a sizeable one - can help ease the strain of a mortgage in coming years. A minimum of 20 percent down is a good idea, and if you can do more than that, so much the better. If you don't think you can afford a down payment of 20 percent or more on a house you're considering, it might be time to shop around for a less expensive home that is more budget friendly.

* Be an informed buyer. There is a seemingly endless list of things to know about buying a home, and the faster you want to buy, the faster you'll need to learn it all. Be sure you know the ins and outs of items like closing costs, adjustable rate versus fixed rate mortgages, how your credit report affects mortgage rates and the documentation you'll need to get a mortgage. The more you know, the better equipped you'll be to make smart decisions that will make you a happy homeowner for years to come.

Adapted from ARAContent

Beware of Foreclosure Rescue Scams

2011-08-17T09:16:00.000-07:00

With the large number of homeowners looking for guidance during the foreclosure process, foreclosure related scams have erupted onto the real estate scene. These "foreclosure rescue companies" claim they will help save your home, but actually they are only out to make a profit - at your expense.

If you are facing a foreclosure, here are some "Red Flags" to watch out for:

- Asks for money upfront before providing any service.
- Instructs you not to contact your lender, lawyer, housing counselor, family, friends or others.
- Asks for mortgage payments to be made directly to his/her company or a bank account set up by his/her company, rather than your lender.
- Requires payment only in the form of cash, cashier's check or wire transfer.
- Promises to stop the foreclosure process, no matter the circumstances.
- Advises you to transfer your property deed or title to his/her company.
- Offers to fill out paperwork for you.
- Asks for something to be done immediately and without delay. This includes pressuring you to sign paperwork that you have not had the chance to read thoroughly or do not fully understand.
- Encourages you to lease your house and buy it back over time.
- Offers to buy your house for a fixed price that is not set by the housing market at the time of sale.
- Asks for you to give a power of attorney.
- Asks for signatures on a grant deed or deed of trust.
- Asks for signatures on a document that is incomplete or has lines left blank.
- Fails to provide copies of signed documents.
- Refuses or fails to put an oral promise in writing.

If you have been a victim of a foreclosure-related scam or approached by a company asking for the items above, you may report the company to the following organizations:

California Attorney General: http://ag.ca.gov
California Dept. of Real Estate: www.dre.ca.gov
Dept. of Housing & Urban Development: www.hud.gov
Your local Better Business Bureau: www.bbb.org

Source: California Association of Realtors

3 Loan Servicers Penalized for Mortgage Modifications

2011-07-06T06:35:00.000-07:00

Three servicers have had their federal incentives withheld for not making the grade in a federal program that modifies mortgages to help families keep their homes, says President Obama's monthly "housing scorecard."

Wells Fargo Bank, Bank of America and J.P. Morgan Chase Bank are "in need of substantial improvement" in the Making Home Affordable Program, which to date has permanently modified more than 600,000 mortgages. Issues ranged from errors in calculating homeowners' incomes to ineffective reporting to the program, which is voluntary.

It's possible the Treasury may permanently reduce incentives if the issues aren't addressed "within a reasonable time," the report states.

Many critics say the program is not meeting expectations. The government, which continues to defend the Making Home Affordable Program, initially expected the program would help an estimated 3 to 4 million people.

Don't Miss Palm Springs Restaurant Week

2011-05-23T12:38:00.000-07:00

Palm Springs Restaurant Week is a 10-day culinary celebration featuring almost 100 restaurants in the Coachella Valley from Palm Springs to Indio! It is the perfect time to visit your favorite restaurant or try something new, as chefs prepare unique three-course, prix fixe menus priced at either $24 or $36 depending on the restaurant, which will include appetizer, main course and dessert (beverages, tax and gratuity are additional).

Participating restaurants and attractions in 2011 include Arnold Palmers Restaurant, Cello’s, Citron, Copley’s on Palm Canyon, Hog’s Breath Inn, Johnny Costa’s Ristorante, Las Casuelas Nuevas, Palm Springs Aerial Tramway, Peaks Restaurant Top of the Tram, Tommy Bahamas Restaurant & Bar, Vicky’s of Sante Fe and Wang’s in the Desert, just to name a few.

For a complete list of participating restaurants and menus, as well as special hotel packages and other offers, visit www.palmspringsrestaurantweek.com

City of La Quinta Picnic & Birthday Bash

2011-04-28T12:49:00.000-07:00

The City of La Quinta is celebrating their 29th Birthday on Saturday, April 30th beginning at 10:00 a.m. at Fritz Burns Park.

The Birthday Party, City Picnic, and Youth Festival will be a high energy day of food, games, and entertainment. Activities will include kids carnival games with prizes, interactive booths & games from several local businesses, bounce houses, a Velcro wall, a Tiki Island wall climb, water attractions (including a dunk tank and Water Wars balloon game), giveaways, live dance and musical performances, food, drinks and much more! It will be a fun day for the whole family.

The Fritz Burns Pool will be open for free swimming, for the duration of the City celebration, with no entry fee!

Fritz Burns Park is located at the corner of Avenida Bermudas & Avenue 52, in La Quinta. This FREE event invites all ages to celebrate with the City of La Quinta.

Notice of Right to Cancel - Explanation for Borrowers

2011-03-29T13:41:00.000-07:00

One of the common documents a borrower may encounter in the loan document package during escrow is the “Notice of Right to Cancel.” This document is also referred to as the “rescission document” or the “3-day Notice of Cancellation.” The document states that the borrower can cancel or rescind their loan transaction within three business days after signing the loan documents. Many borrowers are confused as to when the right to cancel applies and exactly what day the borrower can rescind their approval of the loan transaction.

The right to cancel applies to refinances or “home equity lines of credit” extended on a borrower’s “primary residence.” The right to cancel does not apply to borrowers who are purchasing a home, borrowers who are refinancing their second home, or on investment or rental properties.

There are two important dates on the document. The first is the date of signing. The second is the rescission date, or final date to cancel. In some cases, the dates are already printed on the Notice of Right to Cancel. However, many lenders prefer to leave the dates blank on the document because the exact date of signing may not be known. In this case, the lender typically includes instructions on the document for determining the correct dates or they may be a separate instruciton sheet included with loan package.

The borrower has the right to cancel until midnight on the third day after signing. To determine the correct rescission date after signing, the borrower or his qualified escrow and loan document-signing agent (Notary Public) will count three days beginning with the first day following the signing date (the transaction date is not counted). Sundays and legal federal holidays are not counted, and are therefore skipped. Saturdays are counted because banks conduct lending business on this day. To help with the determination of the correct rescission date, free “rescission calendars” are available and can be found via the Internet.

Homeownership Still Smart Financial Decision

2011-02-01T11:14:00.001-08:00

According to a recent study conducted by Harris Interactive for the National Association of Realtors (NAR) homeownership still ranks high among the list of smart financial decisions.

Ninety-five percent of owners and 72 percent of renters believe that it makes more sense to own a home than not. Seventy-seven percent of homeowners believe that homeownership will help them meet their long-term financial goals.

Also, renters rank their quality of life lower than homeowners. Just 33 percent of renters report that they are "very" or "extremely" satisfied with their family life while more than half of home owners do so.

The majority of homeowners also agree that owning a home means a stable atmosphere for raising a family.

Are the Holidays a Good Time to Sell a Home?

2010-12-13T13:50:00.000-08:00

You may find yourself overloaded with seasonal obligations during the month of December (decorating the house, shopping, entertaining, charity work) and you may be tempted to take your home off the market during the holidays. Most top Realtors agree that taking your home off the market during the Christmas season is a mistake. The holidays are a wonderful selling period. Why? Here are a few reasons:

- Buyers who are actively looking during the holidays are much more serious about buying.

- Many buyers prefer to shop for a home after the busy spring and summer rush. They know it will be easier to look and that negotiations will be less stressful.

- Relocating families need to move during all seasons. These families are much more motivated to get their families settled either before the January semester of school begins or to arrange for the move during spring break in March.

- Cleaning and decorating your home for the holiday season will make it even more beautiful and inviting for buyers. Get the family to do a quick pick-up every morning to keep holiday messes to a minimum.

- If you do get a contract, you can arrange for a 30 to 60 day closing if moving during the holidays isn't an option you want to consider.

So You Bought a Foreclosed Home -- Now What?

2010-10-30T04:01:00.000-07:00

So...you bought a home in foreclosure at a fraction of the former price and maybe did a few home improvements with the money you saved. Now you find that thousands of foreclosures around the country may be invalid because of bank paperwork mishandling problems. Should you worry?

The first thing you should do is check to make sure you have title insurance, which protects you from any claim on the property that surfaces after the deal has closed. Those claims can arise from unpaid taxes or legal glitches in the ownership documents. Most people who take out mortgages are required by their lenders to buy a policy. For those paying cash, it's optional but highly advisable, especially now.

"If you're a bona fide purchaser with title insurance and no knowledge of any irregularities in the transaction, courts are going to be extremely loath to set aside the sale," said Diane Thompson, an attorney with the National Consumer Law Center.

A homeowner with title insurance shouldn't have to worry if the previous owner stakes a claim to the home. Experts say the the title company would most likely settle with the evicted homeowner -- not the new buyer.

What about buying right now?

Buyers who are making a foreclosure purchase from a bank shouldn't be concerned as long as you can get title insurance. If the title insurance company won't sell a policy on a property, you probably shouldn't buy it.

Five Mistakes Home Buyers Make

2010-09-15T13:06:00.000-07:00

Affordable home prices and historically low interest rates have created an ideal situation for qualified home buyers. However, some buyers may be overconfident. Here are five common mistakes made by home buyers. Every home buyer should take note to avoid an expensive mistake.

1. Many buyers think they can save money by forgoing the use of a Realtor. However, managing the nuances of offers, negotiations, financing, inspections, mounds of paperwork and other crucial steps when buying a home often causes confusion and anxiety for buyers. Working with a Realtor -- who is obligated to put the buyer's best interests first -- will help to alleviate buyer concerns and will make the whole process run smoother.

2. Many buyers mistakenly take a do-it-yourself approach to financing. They use online calculators to estimate how much house they can afford, but calculators should not be the sole source for mortgage-approval information. The costs of buying and owning a home go well beyond the sticker price, as maintenance costs, moving fees and association dues must be considered. Buyers are advised to meet with a mortgage broker or banker prior to beginning the home search to help determine the loan amount for which they are most likely to be approved.

3. Don't let charm cloud your judgment. You may find an older home with lots of appeal or find a house that is decorated just right but don't forget the things you're really looking for in a house. Try to think more in terms of size, floorplan and condition and remember that buying a home is a business deal. Additionally, expressing too much emotion to the home seller and revealing eagerness to purchase the home at all costs should also be avoided.

4. You can always fix up the house, but there's no easy remedy for annoying neighbors, oppressive homeowner association rules and lengthy commutes. Do your homework first and find the perks, quirks and hassles of living in a particular place.

5. Although there is a large selection of homes available for sale, home buyers should not assume they can make low offers or unreasonable demands. Even in hard-hit housing markets, homes in desirable neighborhoods are receiving multiple offers.

Our Investment Program May be of INTEREST to YOU!

2010-08-20T13:24:00.000-07:00

It's no secret that there are hundreds, if not thousands, of properties that are REO (Bank Owned) and SS (Short Sales) that make excellent if not incredible investment properties if properly managed.

Please note that CASH IS KING!! And, if desired, very reasonable investor loans are available with a substantial cash down payment along with seller financing!

Our Investor Program is designed to encourage a limited number of active, qualified investors that will really profit by our program. To obtain complete details of this program by email and determine if you are a qualified investor please click here and complete the attached form. There is no obligation and you and your financial advisors and consultants can determine if this makes sense to you -- YOU make the decisions!

Again, this is an exclusive limited program. Just click here to complete the attached form and we will email you all the details and answer all of your questions.

When Opportunity Knocks Answer the Door!

2010-07-26T11:58:00.000-07:00

People are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you're daring enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.

Attractive Pricing
If there’s a silver lining to the recession and the housing downturn, it’s that home prices more affordable. Prices in some areas have moderated significantly, especially in major markets where they increased the most during the housing boom that occurred in most
of the country.

Low Interest Rates
Like inventory and pricing, mortgage interest rates are still at very favorable levels, but rates are sensitive to market forces and can change quickly. There’s no indication that rates will suddenly surge upward, but even a slight rate increase can push monthly payments to the point that a buyer might miss out on their first choice for a new home.

Demand for Rental Properties
On 7/19/2010, Citigroup announced that their foreclosures are up 81% from a year ago. As you can see from the chart above, the next batch of foreclosures will leave many families hit with foreclosure unable to qualify for a mortgage to buy another home. In the upcoming decade, rental property will become the new standard; the only alternative to traditional home ownership.

Buying a home in this market is not the easiest of decisions. If you have a good credit score and money in the bank, buying a home now makes sense. It is important to research the market for buying opportunities and that’s where I can help. In addition to helping you find the right property I can also help you negotiate the best deal.

Many of the homes on the market are either Short Sales, Bank Owned (or REO) or Probate. A short sale is a new experience for most homebuyers, but knowledge is a key to success. Click here for some good tips to help ensure your short sale purchase will be a boom, rather than a bust.

My experience and expertise will get you the results you want! Call Fred Prescott today at (760) 398-3544 or toll free (866) 898-3544 and let me help you find the perfect home at the perfect price.

How to Make Money in this Current Real Estate Market

2010-07-20T08:50:00.000-07:00

There is no question that Coachella Valley Real Estate, primary residential or seasonal/investment homes, land (either rural or seasoned pre-development), multi-family (apartments), commercial sites (either fully developed or build to suit) or agricultural, is available at tremendous discounts. There is real money to be made now on distressed real estate, either short sales, bank owned (REOs) or probate. It's time to build your next egg and this market provides the perfect opportunity.

Please click on the link below to watch a video from CBS's 60 Minutes, "The Mortgage Meltdown – Where's the Bottom". This news story explains the who, what, when, where and how of the next wave of loans that are about to become the Tsunami of foreclosures. What is hard to believe is that this next batch of foreclosures is expected to be 25% larger than 2007 & 2008 combined!

Video link: http://www.youtube.com/watch?v=iUuROWEMjm0
or you can read a printed copy of the report by clicking here.

Cash is KING in the Real Estate Market

2010-06-30T18:30:00.000-07:00

Mortgage loan rates are at an all time low -- under 5 percent for qualified buyers. Renters are readily available for these selected investment/vacation/second home opportunities.

Fred Prescott's exclusive investor/second home program will open your eyes to the multiple properties and opportunities available. These investment quality homes are in full bloom here in the Coachella Valley.

Call Fred Prescott at 760-398-3544 or toll free 877-898-3544 for further information. NO OBLIGATION.

The front page article of The Desert Sun on June 30, 2010, announced fifty-six percent of all home sales in Riverside County in the first three months of the year involved foreclosure or bank owned properties. Click here to read the complete article. Cash is KING in this market. There are some incredible deals and opportunities for investors looking to plan for their future.

"Foreclosures create more demand for well-located quality rentals. Rental demand for well-located properties is still strong and a recipe for a future appreciation," says Greg Dawson of GoRenter.com.

When you are making your most important financial and lifestyle decisions, you want and need the experience of an accomplished and knowledgeable real estate professional. Fred Prescott can assist you whether you're a buyer or seller.

If you are one of the many homeowners behind on your payments and possibly facing foreclosure, you may have alternatives. Visit my website for extensive information or call or contact Fred for a FREE, NO OBLIGATION consultation.

The Coachella Valley Home Market May Be Trending Toward Recovery

2010-06-10T07:17:00.000-07:00

The median price for Coachella Valley home sales rose 31 percent in April compared to the same time last year, Palm Springs Regional Association of Realtors data show. It rose to $197,040 from the $150,140 median in April 2009. Overall, sales dropped 4.5 percent last month compared to last year.

President of the Palm Springs Regional Association of Realtors, Scott Newton, said the April numbers show a market that is moving out of high-season and that inventory is getting low. "That creates higher demand," Newton said. "Higher demand creates slightly higher prices."

Out of the valley's 5,179 active listings for homes and condos, Newton said the Multiple Listing Service showed 2,058 priced at or below $300,000.

"This is a market that is starting to change," Newton said. "It is trending toward recovery."

Top 5 Home Improvement Projects for Sellers

2010-04-05T14:45:00.000-07:00

What are the top DIY (do-it-yourself) home improvements that cost less than $400 and benefit sellers most when they sell their homes? According to a recent HomeGain.com national survey, the top five home improvements that Realtors recommend to home sellers, based on cost and return on investment (from highest to lowest ROI) are:

1. Cleaning and de-cluttering ($200 cost / $1,700 price increase / 872% ROI)
2. Home staging ($300 cost / $1,780 price increase / 586% ROI)
3. Lightening and brightening ($230 cost / $1,300 price increase / 572% ROI)
4. Landscaping ($320 cost / $1,500 price increase / 473% ROI)
5. Repairing plumbing ($385 cost / $1,250 price increase / 327% ROI)

Other inexpensive cosmetic DIY home improvements that pay big dividends include: replacing or shampooing carpets, painting interior walls, repairing damaged floors, painting the exterior and updating kitchens & bathrooms.

Sellers who make these basic home improvements can greatly enhance the value of their home and increase its salability. Of course, every home is unique and a professional evaluation from a qualified Realtor is always recommended.

When you understand the process of buying or selling a home, you will be able to make the best decisions. My goal is to provide you with that information. Call me today and I will assist you every step of the way.

Say Hello to Spring!

2010-03-22T13:40:00.000-07:00

It's time to shake off the winter blues and say hello to SPRING! If you are planning on selling or buying a home, please contact me. I promise to "spring" into action to make this your most successful real estate transaction ever!

Preventive maintenance is crucial to the value of your home. Keep your place in tip-top shape with regular check-ups to save you the headache and cost of emergency repairs. CLICK HERE for a Slackers' Guide to Spring Home Maintenance.

AGE BAROMETER: HOW MANY DO YOU REMEMBER?

2010-02-17T14:11:00.000-08:00

1. Blackjack chewing gum
2. Wax coke-shaped bottles of colored sugar water
3. Candy cigarettes
4. Soda pop machines, that dispensed bottles
5. Coffee shops with table-side jukeboxes
6. Party lines
7. Home milk delivery, in bottles with cardboard stoppers
8. News reels, before the feature film
9. P.F. flyers
10. Butch wax
11. Telephone numbers with word pre-fixes
12. Pea shooters
13. Howdy Doody
14. 45 RPM records
15. S&H green stamps
16. Hi-Fi’s
17. Metal ice trays with ejection levers
18. Mimeograph paper
19. Blue flashbulbs
20. Beanie & Cecil
21. Roller skate keys
22. Cork pop guns
23. Drive-ins
24. Studebakers
25. Wash tub wringers
26. Indelible pencils
27. Bon-Ami
28. Wire wiskers on your car
29. Brodie knob
30. Brill cream, a little dab will do it
31. LSMFT, Lucky Strike Means Fine Tobacco
32. Kilroy was here
33. Arthur Godfrey
34. Julius La Rosa
35. George Michelin
36. Minneapolis Lakers
37. “Old soldiers never die; they just fade away” – MacArthur
38. What the 1950 Ford looked like

How many did you remember?
0-5 Your still young
6-10 Your getting older
11-15 Don't tell your age!!
16+ You're older than dirt!!!

Conditions Bode Well for Real Estate Investors

2010-01-28T07:08:00.000-08:00

Savvy investors are always the first to take advantage of a profitable housing market and the results of a new survey indicates just that.

More than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, according to a recent Move.com Homeownership Survey.

"Affordable prices and ample inventories are restoring the appeal of real estate to investors while providing opportunities for first time home buyers to enter the market," said Move, Inc.'s chief revenue officer, Errol Samuelson.

Low interest rates combined with the home-buyer tax credit are helping some take the practical approach to investing by buying their own home first.

In some markets, especially resort and vacation rental markets, where rents are higher, conditions bode well for investors who want to enjoy positive cash flow as they wait for equity to build.

Fred Prescott Receives SFR Designation from NAR

2009-12-29T08:20:00.000-08:00

Fred Prescott has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of Realtors certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help Realtors stay current on national and state-specific information as the market for these distressed properties evolves.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. Realtors who have earned the SFR certification know how to help families on both sides of the transaction. They help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

A Great Outing in La Quinta

2009-11-30T15:29:00.000-08:00

Please let me wholeheartedly recommend that you go to:

The Homestead Restaurant

78045 Calle Cadiz – Old Town

La Quinta, CA 92253

For Breakfast, Lunch, Brunch or Dinner. It is a terrific atmosphere and big enough for a large reception or wedding. Additionally, on weekends John Stanley King, my musician friend, will be performing. He is a “Desert Legend” and his music and talent are timeless. There is a full bar, extensive wine list and extremely reasonably priced meals. (Their website www.chapellishomestead.com is coming soon!)

On Thanksgiving afternoon, we went to the Homestead for their Thanksgiving Feast for $20 per person. The feast included their delicious turkey, gravy, yams, stuffing, soup, salad and a glass of Chardonnay. Everything was excellent and our service waitress, “Tweet” was very attentive -- ask for her when you go.

As a special incentive, I will treat any serious customer/client at Close of Escrow, to a wonderful dinner along with a bottle of classic wine from my personal wine cellar and two after dinner drinks.

Regarding the NBA, it’s hard to beat LeBron, Shaq and crew in Cleveland. However, the Celtics with Garnett, Pierce and Allen and the Lakers with Kobe, Gasol, Bynum and Odom are contenders.

Regarding the NFL, Brett Farve is really exciting and performing like a 25 year old. But Eli and Peyton Manning are super. Brett will be a Hall of Famer shortly and has also entered the restaurant business with “Brett Farve’s Steakhouse” in Green Bay, WI. Not bad for a down home Louisiana native.

If you want to obtain the local Coachella Valley economic posture and access my real estate recommendations, advice, and guidance, then please just call me at 760-398-3544. You can also visit my website at www.fredsprescott.com.

La Quinta Blues & Brews

2009-11-12T12:04:00.000-08:00

La Quinta Arts Foundation hopes to create some memories at the third annual La Quinta Blues & Brews being held Saturday, November 21, 2009 from 11 a.m. to 6 p.m., at La Quinta Civic Center Campus. Three blues bands will be featured, more than 30 microbrew and craft beers will be offered as well as a variety of great food. Tickets are $15 in advance (www.lqaf.com) and $20 at the gate and include four 4-oz beer samples, a 16-oz. beer, a glass of wine or two bottles of water.

Barry Baughn Blues Band is scheduled at 11 a.m., Pamela G and Blues Addiction at 1:30 p.m and Gino Matteo & Family Phunk at 3:30 p.m.

Put it on your calendar -- You won't want to miss it!

Recovery by 2012? Hopefully!

2009-11-02T12:11:00.000-08:00

by Debra Gruszecki, The Desert Sun

INDIAN WELLS — When will there be true economic recovery in the Coachella Valley?

Try 2012.

And that's only if everything's done right.

That's the prediction from John Husing, an economist who has studied the Riverside and San Bernardino counties region for more than 40 years, and recently that of the Coachella Valley.
During his 2009 Coachella Valley economic report before about 650 business, government and local leaders gathered at the Renaissance Esmeralda Resort & Spa in Indian Wells on Friday, October 23, 2009, Husing used one word to express what the valley's been through:
"Arrggh!"

Fueling that frustration, Husing said, is the fact that the valley has suffered unprecedented job losses in the recession.

"We've lost 130,000 jobs" in this area and in two surrounding counties, he said. The unemployment rate has topped 14 percent, and is rising to levels close to those recorded in Detroit.

"That's not pretty,'' Husing said. "It's a rate that is somewhat comparable to what was going on in the middle years of the Great Depression."

The good news is the valley's median home prices likely hit the bottom in the third quarter, he said.

In a comprehensive assessment, Husing said the valley's economy in 2009 continues to be caught up in the difficulties unleashed by the excesses of Southern California's recent housing boom. This decline has led to difficulties:

Construction jobs and payroll have decreased, hurting a crucial employment sector.

Retail sales have fallen as local incomes have been reduced.

The recession has reduced discretionary incomes of consumers and profits of companies, lowering the number of travelers and conference attendees in the desert resort that's based much of its livelihood on the $1 billion tourism economy.
Assessed valuation has fallen sharply, given the home value decreases, a situation that has commensurately hurt discretionary funding for city governments.

Bank deposits are off, indicating the downturn is directly affecting household wealth and income.

Future is mixed

Looking ahead, Husing said a return to economic prosperity will require diversification of the economy and a housing market recovery.

"The last major shift in the California economy in this last cycle was housing,'' Husing said, citing some $10.6 billion in lost building permit activity, $8.3 billion of it being residential.

"If you take that out of the economy, it eliminates the money that would have moved through restaurants and retail stores."

To Husing, that's lopped $21.2 billion out of the region's $110 billion economy.

"That means one of the targets you have to worry about is how to get that (construction) sector back to work,'' he said.

Husing's 2009 report on the economy said he's seen pent-up demand for homes, mostly because of high affordability. The valley's affordability level, once at 10 percent, is up to 63 percent.

Sales volume is up, and the median prices are back to 2002 levels.

Still, Husing said one yet-to-be-resolved piece of the valley's economic puzzle is that a portion of the 35,498 homes that were sold in the valley are in danger of being worth less now than what is owed.

"How many homes are upside down" and in danger of default that have not yet shown up? Husing said. "That's a huge piece of the challenge."

So why is he saying the bottom may be behind us?

Supply and demand is balancing out, he said.

"Housing prices are flat,'' affordability is up and, for now, the percentage of foreclosures in the valley is dropping.

Education is still a concern as well for the valley, he said.

The level of valley residents with bachelor's degrees is lower than the coastal areas of Los Angeles, Orange and San Diego counties. And many of the college grads here are retiring.

"It means, literally, the toughest job in your economic strategy is, 'How do you raise education?' That's not the job of educators, it's your job as a community."

New Loss Mitigation Links

2009-10-02T10:21:00.000-07:00

When I come across information I think will be beneficial to my clients I like to pass it along. This month, I'm featuring links to two websites I hope you find interesting. Christian Arbid is the President and CEO of Power Brokers International and is one of the most sought after Loss Mitagators in Southern California. In 2008, Los Angeles Magazine named Power Brokers International one of the Top 10 Most Dependable Firms in Southern California. I am fortunate to be a member of the Power Brokers International team.

Great loss mitigation website: www.ForeclosureFighters.info
Great loss mitigation blog: www.LenderLies.blogspot.com

Is the Crisis Over? Investors Return to the Coachella Valley to Hunt for Deals!

2009-09-29T10:09:00.000-07:00

Below are links to two excellent articles from The Public Record regarding the economy and the current Real Estate market in the Coachella Valley. There are real deals NOW in the Coachella Valley -- NO KIDDING!

There are several 3,000 - 4,000 sq. ft. homes in major developments, like new, with top of the line interior design and furnishings, pool, spa, etc. available NOW at a REAL STEAL (under $400,000)!

I am a Certified Professional Negotiation Specialist and will work for you if you have a real interest and are ready to buy now. Send me an email with your new home wish list and I'll start your home search today!

IS THE CRISIS OVER OR IS IT JUST ANOTHER MIRAGE? By Michael Braun

A depression has been avoided and the recession has come to an end as of summer 2009. Although everyone is encouraged by recent growth data, we need to be conscious that the turnaround is fragile and dependent on the various initiatives undertaken by the government and the Fed. A premature withdrawal of the stimulus could therefore damage this turnaround. The Fed is likely to give growth a chance and hold policy rates (currently at 0.25%) lower for longer than some people might expect. Click here for complete article.

LAND ACQUISITION HEATS UP IN THE COACHELLA VALLEY AS INVESTORS RETURN TO HUNT FOR DEALS! By Alex Altman

For the last several years, homebuilders and investors have had very little appetite for the Coachella Valley's land market. The recession has hammered consumer optimism and reduced purchasing power; financing challenges have grown as lending practices tightened; and the desert's inventory has been flooded by foreclosure properties being sold at deep discounts, often well below replacement cost. In such an environment, how does a homebuilder earn a profit? The answer is not in building new product, at least not yet. Rather, investors and builders alike are returning to the desert to purchase distressed projects at hugely reduced prices -- in many cases for a percentage of the value of improvements -- laying the foundation for the next wave of profitable new home construction in the years ahead. The result: a major uptick in the valley's land market, and a bidding frenzy in general as investors and developers compete to acquire the most desirable projects. Click here for complete article.

Home Sales Climb in July, Second Month of Double-Digit Gains in the Valley

2009-08-30T08:35:00.000-07:00

Home sales rose 17.4 percent as first-time buyers rushed to take advantage of a tax credit that expires this fall. The median price fell back to the $180,000 baseline, a far cry from the median price measured a year ago at $274,000. The median was last in the $180,000 range in 2001.

Leading to the median price not seen in nearly a decade have been the glut of foreclosure sales activity, joblessness and the credit crunch that has swept the nation and made borrowing a daunting task.

Real estate experts said those rock-bottom prices are spurring sales.

A total of 965 new and resale houses and condos closed escrow in the Coachella Valley in July, with the bulk representing resale single-family homes.

Greg Berkemer, executive vice president of the California Desert Association of Realtors, sees recovery in sight.

“I think we have passed the bottom in terms of sales,'' he said. “In terms of pricing, we may be rocking along the bottom for awhile. But I think we will, over time, see some more tick-ups in price.”

But it is premature to call a bottom, DataQuick president John Walsh said.

“While some data continues to hint at that, it remains an especially risky call to make given the magnitude of future job losses and foreclosures,” he said.

Uncertainty over how many more homes may tumble into foreclosure because of the risky pick-a-payment, adjustable-rate and stated income loans also makes it difficult to determine if the end is in sight.

“Even if this is the bottom, we could easily bounce along it for quite awhile. But we appear to be on course, right now, for recovery,” said Berkemer.

Hurry! Time is running out to get the $8,000 First Time Home Buyer Tax Credit

2009-08-17T15:54:00.000-07:00

We are quickly approaching the December 1 deadline. If you are a first-time buyer considering buying a home now is the time to get the ball rolling to ensure you find a home and can go to settlement prior to the deadline. Here's what you have to do to get your benefit:

1. Close on your home purchase by November 30, 2009,
2. Ensure that you are a qualified first-time buyer under IRS guidelines,
3. Decide which year to file under, 2008 or 2009,
4. File an amended 2008 return or choose to apply the credit to your 2009 tax return.

Deciding When to Apply the Credit

If you want the benefits of your credit as soon as possible:

You might choose to file under your 2008 tax year. Since April 15 has already passed, you would have to file an amendment to your return. However, if you've already filed for an extension of your 2008 return, then you can simply claim the credit when you submit your return.

If you anticipate a drop in income next year:

You can wait to claim the credit as part of your 2009 filing. In some cases the value of the credit might be higher, particularly if in 2008 you qualify for only a partial credit because your income is over $75,000 (single) or $150,000 (joint).

Your Next Steps

Once you have determined which year to apply the tax credit, you will need to do two things to claim the credit:

1. Fill out Form 5405 to determine the amount of your available credit, and

2. File an amended return for your 2008 taxes, or wait and apply to credit when you file your 2009 tax return.

Determining Your Home Buyer Tax Credit Amount: Form 5405
Applying the Home Buyer Tax Credit to Your 2008 Tax Return
Applying the Home Buyer Tax Credit to Your 2009 Tax Return

Take Advantage of Undervalued Real Estate Properties

2009-08-06T08:12:00.000-07:00

There are rumblings that the “real estate market” is or has started to bottom out. The Desert Sun reported on Sunday, August 2, 2009, that the Coachella Valley had the strongest month in real estate in June in eight months, with a 23 percent hike in sales, and home prices appear to be stabilizing. This could be and will happen, as real estate is historically cyclical and conditions will improve. However, the unemployment rates are going up every month, consumer spending is flat and we are really in debt now with the wild spending by the Federal government in an effort to stimulate the economy.

Whether the market has hit the bottom or not, the fact is there are FABULOUS VALUES right now with loads of short sales and REO’s (lender owned properties) with very attractive prices at every price level, with financing available. All you need is a little innovation and creativity to obtain an undervalued property.

Fred Prescott wants to work with serious buyers who have cash or lender pre-approval to help and assist you to acquire your primary residence, second home/vacation home/condo or investment property.

Don’t sit on the sidelines and wait. It’s time to GET IN THE GAME! It’s easy to hit a home run if you’ve got the right realtor. Let Fred Prescott guide you in this process of making realistic, intelligent offers on very undervalued real estate properties.

There is NO OBLIGATION. If you qualify as a serious buyer contact Fred today to discuss your particular situation.

Thanks and best wishes.

2009-07-16T12:58:00.000-07:00

Southern California home sales may have finally hit bottom. That good news was relayed Wednesday when real estate tracking firm MDA DataQuick reported that the median price of a home in Southern California surged 6.4 percent in June from May to the highest level in 30 months.

Along with the 6.4% rise in prices from May, fewer than half of the sales were foreclosures -- the first time that has happened in nine months.

The median price in the six-county area climbed to $265,000 last month from $249,000 in May, accounting for a second consecutive month-to-month increase.

DataQuick attributes the jump to an increasing number of deals above $500,000, as more buyers responded to price cuts and found it easier to secure financing. Resales of such homes rose to 19.6 percent of all sales in June, up from a low of 13.4 percent in January.

Last month's median was the highest since last December's $278,000. But it was still 47.5 percent below the median price of $360,000 a year ago.

"I think we can now say with fair degree of confidence the pace of real home price declines has slowed dramatically," said Los Angeles economist Christopher Thornberg, who was an early predictor of the housing bubble.

But Thornberg and other analysts cautioned that the housing market remained wobbly and prices wouldn't rise substantially in many neighborhoods for months or even years. The median price of $265,000 is far below the 2007 peak of $505,000. What's more, California is struggling with one of the highest unemployment rates in the nation and mortgage defaults are continuing to rise. A surge in new foreclosures could squelch any potential recovery in the housing market.

Pending home sales up 4th straight month in May

2009-07-14T15:28:00.000-07:00

A private group says pending home sales rose in May for the fourth straight month, fresh evidence that the housing sector may be recovering.

The National Association of Realtors says that its seasonally adjusted index of pending sales increased by 0.1 percent to 90.7. Analysts expected no change, according to Thomson Reuters.

The NAR attributes the increase to lower home prices and the $8,000 first-time homebuyer tax credit that was included in the Obama administration's stimulus package.

The pending home sales index, which tracks signed contracts to purchase previously occupied homes, is now 6.7 percent higher than in May 2008, when it was 85.

Paying Too Much for Real Estate Taxes?

2009-06-30T15:18:00.000-07:00

Fred Prescott, Broker Associate, is currently assisting his past clients in obtaining a significant savings in their Riverside County Real Estate Taxes. There are real dollar(s) savings! If you bought your property within the past 2 1/2 years you have a perfect opportunity to lower your current real estate taxes and rate. IN ADDITION, you can obtain a REFUND of overpaid Riverside County Real Estate Taxes. You will enjoy all the tax savings, which can amount to over $4,500, depending on your property.

As a past client of Fred Prescott, there is NO CHARGE for this service, research and data production. To take advantage of this opportunity contact Fred at the number below.

If you are NOT a past client of Fred’s but would like to take advantage of this opportunity, the research and data production charge is very reasonable and well worth the future savings. A fee is collected only if positive results are achieved. No reduction in Real Estate Taxes = NO FEE!

Contact Fred and start saving money TODAY! 760-398-3544 or 866-898-3544

Click here to view the Real Estate Tax Reduction worksheet.

Opportunities Exist For Savvy Investors

2009-06-15T13:50:00.000-07:00

It has been stated that “there are difficulties in every opportunity” however, I believe “there are opportunities in every difficulty.”

The amount of hype we are currently receiving is really amazing. Let’s review a few recent facts and events:

1. Meltdown of Countrywide – taken over by Bank of America
2. Merrill Lynch/Bank of America forced to merge
3. Meltdown of Bear Sterns
4. Meltdown of Fannie Mae and Freddie Mac
5. Crash of Lehman Brothers
6. Bailout of AIG
7. Failure of Indy Mac Bank, First National Bank of Arizona
8. Explosive surge in oil price per barrel by the cartel
9. Insolvency of Citicorp
10. Sale of Wachovia to Wells Fargo
11. Sale of Washington Mutual to JPMorgan Chase
12. Merger of Smith Barney & Morgan Stanley
13. Bernie Madoff multi-billion dollar Ponzi scheme
14. Federal Reserve Interest Rates at 0-2%
15. GM Bankruptcy
16. Chrysler Bankruptcy/take over by Fiat
17. State of California impending financial disaster – highest sales tax and real estate tax of all 50 states.

I am told that the recession shows signs of bottoming out or recovery – that is a MYTH!! This is nothing more than a Bear Market Rally. It’s happened before and will repeat itself. Consult the S&P Case-Shiller Charts and follow the 10 year treasury bills and real unemployment figures. Unemployment is currently at 9.4% nationally and way over 10% in the Coachella Valley. For a great analysis and opinion, read Michael McDonald’s How to Tell a Great Economy From a Fake One?

Opportunities now exist for savvy investors and home buyers to purchase depressed, stressed properties at substantial discounts. Let me assist you with your search.

If you are a serious buyer/investor with cash or have been pre-approved for purchase by your lender, consider giving me a call to discuss your “wants and needs”. There is NO OBLIGATION! If you are just looking at this time, I hope that you continue to use my website as a resource and will call me when you are pre-approved and serious about purchasing a new home. Please call if you are a serious buyer.

You are also invited to call me toll free 866-898-3544 and I’ll spend some time with you on the phone to discuss your situation.

Regional Sales & Price Activity - April 2009

2009-06-10T16:22:00.000-07:00

Median price fell 36.5% and sales increased 49.2% compared to the same time a year ago for California statewide. Locally, median price fell 50.6% and sales rose by 47.4% from a year ago. The inventory declined from the prior month for the third straight month as year over year sales remain brisk. If the sales pace continues over the next few months we would expect for prices to stabilize and begin to increase.

"Favorable home prices in many parts of the state have led to an increase in affordability for first-time buyers. In the first quarter of 2009, affordability rose to 69%, enabling many to take advantage of first-time buyer programs and near record-low interest rates," said C.A.R. Chief Economist Leslie Appleton-Young. "The jumbo loan market, however, continues to be starved for financing, constraining sales for the high-end segment." However, high end sales are moving up here in the desert.

For more statistics CLICK HERE!

Why Buy Now?

2009-04-30T06:28:00.001-07:00

There are some great investment opportunities available in the real estate market right now. CLICK HERE FOR THE TOP 10 REASONS TO BUY NOW! I have assisted multiple buyers with solid financial and pertinent information/ideas that you can benefit from. I will analyze your situation with NO OBLIGATION! Don't wait -- call me today!

Rentals Wanted

2009-04-10T07:20:00.000-07:00

I need rental homes and condominiums for my growing number of clients just coming out of short sales, foreclosures, REO’s and failed loan modifications.

Many, if not most, of these clients just need to get back to basics and rent for 1-3 years, regroup, save their money, reestablish their credit and reinvest in another home sensibly with professional assistance.

If you, your friends and/or associates have properties they would like to lease on an annual basis please contact me at no obligation: Fred@FredSPrescott.com

My analysis of your rental property is a valuable asset for you to have so call me today! Phone: 760/398-3544 or toll free 866/898-3544.

I am a Certified Short Sale Listing and Sales Consultant which means you’ll have knowledgeable and reliable professional assistance in your transaction.

Valley sees 70% jump in home sales

2009-03-26T13:39:00.000-07:00

The Desert Sun, 3/26/09

Home sales jumped about 70 percent in the Coachella Valley in February over the same period a year ago, a continuation of a trend that one analyst says might indicate a market stabilization.

The high volume of sales -- while spurred by dismal economic conditions that caused prices to fall drastically -- indicates the market is repairing itself, said Greg Berkemer, executive director of the California Desert Association of Realtors.

“There are good values,'' he said. “Buyers are taking advantage of them in increasing numbers.”

The median price of homes sold was $156,000, down 53.4 percent from $334,900 in February 2008, according to the California Association of Realtors.

“We are now in the third consecutive month in the desert with year-over-year sales increases,'' Berkemer said. “While we still won't say the market is turned around, and is headed back, we see what could be the beginning of a legitimate trend.”

If the trend continues, Berkemer said the association might be able to say with assurance that the market has turned, and that price reductions have bottomed. More...

Home Affordability Highest Since Start of Decade

2009-03-18T12:26:00.000-07:00

Source: California Assn. of Realtors
By Sara Sutachan, Senior Research Analyst & Robert Kleinhenz, Ph.D. Deputy Chief Economist

Home prices in California have declined markedly since peaking in mid-2007. The fourth quarter of 2008 was no exception as the median price of an existing detached single-family home fell 41 percent from the same time a year earlier. The median price in the fourth quarter of 2008 was $291,800 compared to $492,490 for the fourth quarter of 2007.

The unprecedented price declines have dramatically improved affordability in the state. C.A.R.'s Housing Affordability Index for First-Time Buyers, which measures the share of all households that can afford the entry-level home, rose to 59 percent in the fourth quarter of 2008, meaning that nearly six in 10 households in California could afford the entry-level home (defined as 85 percent of the median home price) in the fourth quarter. Affordability has nearly doubled from a year earlier when the affordability index was at 33 percent and now stands at its highest level since the start of the decade. The index is based on an entry-level home price, a 10 percent downpayment, an ARM effective composite rate, and a 40 percent debt-qualifying ratio.