Bonny Doon Denied Its Own Fire District-Santa Cruz Sentinel Article

Bonny Doon denied its own fire district
By Shanna McCord - Sentinel staff writer

Article Launched: 09/23/2008 10:49:59 AM PDT

SANTA CRUZ - Bonny Doon will have to stick with County Fire and give up any hope of breaking away to establish its own fire district. Aspirations of many in the small Santa Cruz Mountains community were dashed Monday night when the Local Agency Formation Commission voted 4-3 to deny a proposal from some Bonny Doon residents to disconnect from County Fire and create an independent fire district financed with property taxes.
Commissioners Cliff Barrett, Bob Begun and Jim Anderson voted to support the Bonny Doon proposal while Jim Rapoza, Roger Anderson, Tony Campos and Ellen Pirie said such a move would be harmful to the entire county.
About 500 people showed up at LAFCO's public hearing, which ran until 10:30 p.m., at First Congregational Church on High Street to make their cases - 75 speakers nearly split between supporting the proposal and wanting it shot down.
In the end, commissioners sided with a LAFCO staff report that said a new fire department for Bonny Doon would jeopardize fire protection in other parts of unincorporated Santa Cruz County, causing an estimated $365,000 annual loss to the County Fire budget.
"The problem is it will come at the expense of Davenport, Corralitos or the Summit area," Pirie said. "We can't pretend that it's not the case and that it won't matter because it will matter. It will matter a lot. I just can't do it."
Bonny Doon resident and retired fire Chief Tom Scully disputed the facts presented in the LAFCO report, saying there was no basis for the $365,000 figure presented by LAFCO Executive Director Pat McCormick.
Scully, who has been working for Bonny Doon's fire fighting independence since 2006, said the area suffers from slow response times, lack of training for volunteer firefighters and poor equipment.
In addition, he said the community was hurt by Cal Fire's failure to dispatch Bonny Doon volunteer firefighters during the Martin Fire.
"This is about the small fire that could become big. It's about the child who suffers an asthma attack or the person who has a stroke," he said. "Each situation demands a life-saving emergency response, and we're willing to take the responsibility on ourselves."
Several Davenport residents said they feared their fire coverage would take a hit if the Cal Fire station on Swanton Road were forced to close in the aftermath of Bonny Doon creating its own.
"It's unconscionable any area be shorted on service," Ken Fein of Davenport said. "Someone will get service at the expense of someone else not getting service, that's not fair."
Kay Todd, a Swanton Road resident, agreed.
"A separate district is not the solution," she said. "It's wrong that we're being pitted against each other. We should find a better way."
There is no avenue to appeal LAFCO's decision.
However, Scully said he would welcome any effort by county supervisors, especially Neal Coonerty, Ellen Pirie and Tony Campos, to help Bonny Doon residents come up with an alternative solution.
"The county never offered any options for our proposal," Scully said.
"They like to ignore the issue and hope it goes away."

Contact Shanna McCord at 429-2401 or smccord@santacruzsentinel.com.

More on the Fannie Mae, Freddie Mac Takeover

Curious about what happened during the days leading up to the dramatic seizure of mortgage giants Fannie Mae and Freddie Mac by the U.S. government?

Click here for a blow by blow of the final weeks before the takeover.

Courtesy of the New York Times

Breaking News: U.S. Gov't Takes Over Mortgage Giants

Yesterday, in a dramatic turn of events, the United States government seized control of the Fannie Mae and Freddie Mac companies in an effort to truncate the mortgage giants' negative influence on global markets as the housing market flails.

This new plan puts the companies under a government conservatorship and replaces their management. In addition, "The plan also commits the government to provide as much as $100 billion to each company to backstop any shortfalls in capital. It enables the Treasury to ultimately buy the companies outright at little cost. It bans them from lobbying the government...." Both companies are also required to shrink their portfolios in the future, and the government intends to "buy significant amounts of their mortgage-backed securities on the open market, beginning with the purchase of $5 billion worth this month."

Stephen LaBaton and Edmund Andrews of the New York Times comment that, "[The takeover] could become one of the most expensive financial bailouts in American history, though it will not involve any immediate taxpayer loans or investments."

Click here to read the article in its entirety, including further details of the rescue plan and commentaries from presidential candidates and top investors.

Tax Credit for New Homebuyers!

As part of the Housing and Economic Recovery Act of 2008 (H.R. 3221), the federal government is offering tax credits of up to $7,500 to new buyers between April 9, 2008 and June 30, 2009.

That's right. If you have not owned a house within the last three years and close escrow on a house before June 30th of next year--and that's any house--the IRS will cut either this or next year's tax bill by up to $7,500! The credit is intended to "jump-start housing sales and clear out unsold real estate inventories," according to Kenneth Harney at the Washington Post.

Keep in mind, however, that this particular tax credit does require that beneficiaries pay back the credit "starting in the second tax year after purchase and continuing for up to 15 years." In this way it is, in essence, an interest free loan.

For more details on the stipulations of this new credit and to find out if you are eligible, click here.

Email me to talk about purchasing a new home, or click here to see my current listings.

Foreclosure Relief Bill Becomes Law

This week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California.

The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default.

It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply.

These requirements will remain in effect until January 1, 2013.

The full text of Senate Bill 1137 (Perata) is available at www.leginfo.ca.gov

Highlights of the new law are as follows:

• Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender's declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a similar declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.


• Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.


• 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant's right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.

New California Cell Phone Laws

Today is July 1st, which means today is also the day that California's new Cell Phone Laws go into effect.

As of today, it is illegal to use a handheld wireless telephone while operating a motor vehicle. Motorists who are 18 and older may use a "hands-free device"--a Bluetooth or other earpiece--but those motorists who are younger than 18 may not use a handheld phone or a hands-free device at all.

For more detailed information about the new law and answers to Frequently Asked Questions, click here.

FIRE PROTECTION: What You Need to Know

It has been a busy start to the fire season in California. In many of the fires where we have seen homes destroyed, there has been a lack of defensible space around the homes. This is the area within the perimeter of a parcel where brush clearance, emergency access, and other wildfire prevention measures must be maintained.


Recent changes in state law require that homeowners in certain high fire risk areas maintain defensible space clearance out to 100 feet from their home, expanded from the 30-foot firebreak that was already required.Even if you are not in a high fire risk area, it’s a good idea to create enough defensible space around your property to decrease the risk of fire.

Here is a link to the brochure of the CDF's guidelines for creating defensible space: http://fire.ca.gov/cdfbofdb/PDFS/4291finalguidelines2_23_06.pdf

For more information, the CDF website is http://www.fire.ca.gov/

Dump the Junk: Another Tip on Stopping Junk Mail

Did you know that the average household receives 1.5 trees' worth of junk mail annually?

If you've ever wondered, as you tossed the unsolicited catalogs and direct mail materials directly into the recycling bin, if there is a way to stop this waste of paper, fuel, printing, etc., there is!

Simply log on to https://www.directmail.com/directory/mail_preference/ and opt out of direct mail lists at no cost.

Upcoming Event: Bonny Doon Art & Wine Festival

This Saturday, June 7th, the Bonny Doon Community School Foundation is hosting the

6th Annual Bonny Doon Art & Wine Festival

from 1PM to 5PM

at the Bonny Doon Airport Gardens!

The Bonny Doon Community School Foundation (BDCSF) is hosting the 6th Annual Art and Wine Festival on Saturday, June 7th, from 1PM to 5PM. It will be held at the beautiful Bonny Doon Airport Gardens with over 20 wine tasting tables and over 40 auction items and demonstrations. A tasty array of gourmet treats and local musicians will also be adding to the fun festivities under the redwoods. Art works by featured artist Barbara Bailey-Porter and a beautiful collection of local artists' quality fine arts and crafts will be available for sale.

BDCSF holds this annual fundraiser to support programs at Bonny Doon Elementary such as music, art, assemblies, teacher training, developing a model science lab/classroom for the K-6 students, and growing the funds in our endowment.

Tickets are $25.00 in advance or $35.00 at the gate. Call for tickets and more information at 831-423-7728 or visit www.bonny-doon.info.

This year, the BDCSF has a goal of growing the endowment to $100,000. This is the largest event contributing to that goal, so mark your calendar!

One-Stop Web Surfing

Check out www.allmyfaves.com

Talk about convenience!

The State of the Market: Not as Bad as You'd Expect?

According to Market Watch,

"Top officials with the National Association of Realtors and Standard & Poor's, which issues the S&P/Case-Shiller Home Price Index, agreed this week their monthly reports are giving imprecise readings of price changes at all levels -- national, state and regional -- due to rare market conditions that are skewing survey results."

These "rare market conditions" include an anomalous trend in which sales of more expensive homes are dropping do to tighter lending restrictions and sales of less costly homes are spiking due to increased foreclosures. These phenomena combine to dramatically lower the national median home cost.

In addition, the S&P/Case-Shiller index tracks just 20 major markets in the country, making its data less than representative; and, the fact that the index has only been around since 2001 is good to keep in mind to keep some perspective when it issues reports using language such as "plunged by a record" and "fastest rate ever."

In the end, Chris Plummer reports that, according to the NAR's Chief Economist Lawrence Yun, "pockets of severe price declines in local markets are skewing figures. If homeowners want to determine their property's value, it's never been more critical to take the measure of recent sales by home-price level in their town or city neighborhood."

For a free report to determine the value of your home based on local market conditions, contact me directly at frank@frankmurphy.net or 831-457-5550.

To read the article in its entirety, click here.

Fed Rate Cut Predicted

The monetary policy meeting of the Federal Reserve is just two days away, and many predict that the institution is likely to cut the short-term interest rate once again, from 2.25%to 2%.

This would be the seventh time that the rate has been lowered since August, and would signal that a recession is still a strong possibility this year.

Although the stock market is doing relatively well at the moment, soaring prices for oil and food have fostered a growing fear of imminent recession.

In addition, as Steven Weisman of the New York Times reminds us, "A tricky aspect of the Fed’s decision is that the impact of whatever it does may not be felt for more than six months. Many economists say it takes at least that long for interest rate cuts to have an economic effect."

In the end, one major issue that the Fed will battle over is the need to take care of inflation versus the need to ward of a recession.

Click here to read Weisman's article in its entirety.

FYI: Request for Reappraisal in Santa Cruz County

Santa Cruz Association of REALTORS®
Email Ed
Week of April 7, 2008

REQUEST FOR REAPPRAISAL OF HOME IN SANTA CRUZ COUNTY


When the taxpayer in Santa Cruz County believes he/she is being over assessed this form may be submitted to the Assessor's Office so that the current assessed values may be reviewed. For more information see the County’s brochure entitled Prop 8 Reductions under Tax Cycle Information.

Note: If you are unable to open the link to the Request for Reappraisal form simply copy and paste the link below into your browser.

http://sccounty01.co.santa-cruz.ca.us/asr/forms/taxform10.pdf

The Secrets to Real Estate Success

The Santa Cruz Sentinel published an article today featuring the testimonies of Santa Cruz's most successful Realtors.

Frank's secret? "I love helping people."


by Jondi Gumz, Santa Cruz Sentinel

Homebuyers are scarce. Sales are down 50 percent compared to the peak of 2005.Yet some real estate agents closed a deal a month -- or more -- last year, the slowest year of the past decade. How did they do it?

About 90 people showed up Wednesday at a luncheon organized by the local chapter of the Women's Council of Realtors to hear six top agents share their secrets.

Quipped moderator Robert Bailey, president of Bailey Properties, "This could be the new cast of 'Survivor.' "

When Sally Bookman started in real estate in 1974, she made it a habit to write notes to the prospective buyers she met at open houses. She didn't procrastinate; she started writing notes before the open house ended. Now she has a huge referral business.

Bookman, originally from London, bought a house while studying at UC Berkeley. She filled the house with students, then bought the lot next door, and then another house.

"I never lost at Monopoly," she said.

She said she uses her doctorate in social anthropology to figure out what clients want."If you drive that car and the way you dress, I know what kind of house you want," she said.

Frank Murphy made only one deal in 1998, his first year in real estate. He had expected his new career would mean lots of free time, but he worked 70-80 hours a week.

He uses his 15 years of experience as a building contractor to help buyers solve problems.

"I love helping people," he said.

Audrey Tennant, who's been in the business for 20 years, stays in touch with clients. She uses seasonal marketing campaigns. Working in human resources and marketing for a food and wine company over the hill, she learned patience during union negotiations.

Real estate, she said, is "a give and take business not a push and shove business."

Michael O'Boy initially didn't want to follow in the footsteps of his dad, who was a broker. He became a therapist instead. Then he traded that profession for real estate in 1995 when he decided he wanted to become a homeowner. He found his background as a therapist helpful."You listen more and say less," he said.

Lela Willet taught kindergarten until she had a second child. Then she left the classroom to work with her husband, a builder. She sets aside time once a week to call every one of her clients. She does it away from the office, so she doesn't get interrupted.

Being with 5-year-olds, she learned patience and listening, valuable skills in real estate.Pat Simmons made connections in construction working as a masonry contractor with his father."I can recommend folks I would use," he said.

He also can advise clients how much to offer when they tell him the kitchen has to be updated. One lesson he learned from his father: Ask yourself: "Are you proud to put your name on your work?" Ask that question every day.

So what do they all have in common?

It's not high-tech gadgets.

In fact, only Murphy and O'Boy like technology. All of the others outsource computer tasks.Experience counts, certainly, but that's not enough by itself.

For each of these agents, the key is helping people. It's finding out what their clients need and helping them get what they need.

As Simmons put it, "It's about success for the client, not you and the commission."

Well said.

Lessons from survivors

Audrey Tennant
Firm: David Lyng Real Estate
'07 escrows: 14
Started in: 1987
Was in: Human resources/marketing
Relaxes by: Spending time with grandchildren.
Quote: Look for opportunities. Remember buyers turn into sellers.

Frank Murphy
Firm: Keller Williams Realty
'07 Escrows: 19
Started in: 1998
Was: Building contractor
Relaxes by: Traveling
Quote: Instead of trying to make a buck, I have an opportunity to help people solve a problem.

Mike O'Boy
Firm: Coldwell Banker
'07 Escrows: 25
Started in: 1995
Was: Therapist at Dominican Hospital
Relaxes by: Coaching
Quote: Don't take for granted where your business will come from. An open house three years ago could result in a client. Return every phone call.

Proposal to Increase Lending Limits: What Do You Think?

Designed to "jump-start the ailing U.S. housing market," the current federal economic stimulus plan includes a proposal to increase the size limit on loans from mortgage financiers such as Fannie Mae and Freddie Mac. At the moment, the limit is set at $417,000. With this proposal, the loan limit would go up to $729,750.

According to this post at TheTruthAboutMortgage.com, "the hope is that the easing of the loan limits will allow homeowners in more expensive housing markets to obtain more favorable financing, which in turn should promote sales and uphold home prices."

However, not everyone is quite so optimistic. This article by Al Yoon of Reuters gives a more cynical view than the opinion over at TheTruthAboutMortgage. Yoon fears that raising the loan limit might unintentionally raise mortgage rates, since "increasing the eligible loans to $729,750 from $417,000 would change the characteristics of mortgage-backed securities, leading traders to exact a premium for increased interest-rate risk." Higher mortgage rates would in turn, of course, "make it even harder to unload already high housing inventories and existing homes on the market, delaying any housing recovery and potentially extending the U.S. economic slowdown."

We're curious what you think about the economic stimulus proposal and its hope to increase loan limits . Go ahead and read both articles (click on the links provided) and let us know your prediction!

How the New Rate Cuts Might Affect Your Mortgage

As most of us know, last Wednesday marked another .5% rate cut for the Federal Reserve, placing the current interest rate at a flat 3%.

Alan Heavens of the Chicago Tribune has written an insightful article about the way that short-term interest rate cuts affect the public's perception of mortgage rate. Click here to read about the rush for refinancing in the wake of the most recent rate cuts.

The Santa Cruz County Housing Market in 2008

Will Santa Cruz County succeed in "bucking the statewide housing trend"?

According to Sentinel staff writer Jondi Gumz, some say it can:

"Santa Cruz County is expected to bypass the statewide housing trends in 2008.

Alan Nevin, economist for the California Building Industry Association, said his statewide prediction for smaller homes and lower prices might come true in San Luis Obispo but not in Santa Cruz.

'The problem in Santa Cruz is supply,' said Jeff Becker of DMB Associates in Hollister and association chairman. 'You're not going to see smaller homes there at lower prices. Builders can build larger and always have a buyer.'

The CBIA forecasts 2,200 housing starts in the Central Coast area, which runs from Santa Cruz to Santa Barbara counties. From 2002 to 2005, an average of 4,581 single-family homes got permits; the number dropped to 2,000 in 2007. Multifamily homes, often less than 1,000 units, are not a significant factor.

Between 2,000 and 3,000 new jobs are projected in 2008, a slight improvement over 2007, but down from 7,000 in 2005.

Here's what locals expect:

Jeff Talmadge, Aptos builder: 'I think pricing from trade contractors will be lower this year than last year. I have had some of them tell me they will be more aggressive about going after more types of work than in the past. There have been more instances of contractors who are based over the hill competing for jobs here in Santa Cruz than I have ever seen before. From an environmentalist's standpoint, I like to see homes heading toward being smaller.'

Dennis Norton, Capitola land-use planner: 'Nothing new is coming down the pike. I think it's going to be a slow year. The business in Santa Cruz is remodeling; compared to new homes, the ratio is 10 to 1 or 6 to 1. The only people building are on the high end, people who aren't affected by the economy. A third of my clients are like that. They're from over the hill. One paid $2.7 million for property in Pleasure Point, tore down the house and will probably spend $2 million to build. As for smaller houses, I don't see that. That may be true in the spec business but nobody is in the spec business now. Maybe the condos under construction on 41st Avenue. They just started framing on that project.'"

B of A Set to Buy Countrywide

Bank of America Corp officially announced today that it will buy mortgage lender Countrywide Financial Corp for $4 billion dollars.

According to Reuters, "Countrywide's market value has slid by about $22 billion in the last year." Caught in the subprime mess up until now, hopes are that the merger will "avert one of the biggest collapses in the U.S. housing crisis."

Bank of America and Countrywide will combine to create the nation's second-biggest mortgage lender.


Bank Of America to Buy Countrywide For $4 Billion, from Reuters via the New York Times

Press Release: Frank Murphy - Expertise in Luxury Home Market

Frank Murphy with Keller Williams Realty Luxury Homes Division of Santa Cruz recently completed a luxury home marketing training course offered by the Miami Board of Realtors.

The course - which covered such topics as demographics of the affluent, lifestyle segmentation, trends and amenities in today’s luxury home product, and creating a marketing plan for the multimillion dollar property – was taught by Laurie Moore-Moore, President of the Dallas-based Institute and author of the book, “Rich Buyer, Rich Seller! The Real Estate Agents’ Guide to Marketing Luxury Homes.”

“The course is a step towards earning the prestigious Certified Luxury Home Marketing Specialist designation which The Institute awards internationally to sales professionals who meet performance standards in the upper-tier residential market,” said Moore-Moore. Frank Murphy is an example of a sales associate who works to hone the special skills and competencies necessary to provide exceptional service in the fine homes and estates marketplace.”

Frank Murphy is an award-winning sales associate who has been in real estate since 1997 and specializes in the Santa Cruz County market. Frank is currently one of the 25 Top Producing Realtors in Santa Cruz County.

“The training provided new insight about the upper tier market, helped me polish my skills, and provided valuable networking contacts with other agents across the country who specialize in luxury properties,” said Murphy “In addition, I discovered new and creative tools for promoting expensive homes and estates and new resources for finding buyer prospects. Home buyers and sellers will benefit from my new knowledge.”

For current information on the upper tier market, contact Frank Murphy at Keller Williams Realty Luxury Homes Division of Santa Cruz at 831-457-5550 or email Frank@FrankMurphy.net

www.frankmurphy.net

TAX BREAK FOR MORTGAGE DEBT FORGIVENESS

President Bush signed into law today a new measure giving tax breaks to homeowners who have mortgage debt forgiven. Under preexisting law, the debt forgiven by a lender, such as for short sales and refinances, was generally taxable to the borrower as debt discharge income. With the passage of the Mortgage Forgiveness Debt Relief Act of 2007, a taxpayer does not have to pay federal income tax on debt forgiven for a loan secured by a qualified principal residence.

This tax break applies to debts discharged from January 1, 2007 to December 31, 2009. Qualified principal residence indebtedness is debt incurred in acquiring, constructing, or substantially improving the residence (up to $2 million for refinances).

For purposes of calculating capital gains, any debts discharged excluded from income under the new law must be subtracted from the basis of the taxpayer's principal residence (but not below zero). However, taxpayers may generally exclude from capital gains income up to $250,000 (or $500,000 for married couples filing jointly) for properties owned and used as their principal residence for at least two of the last five years.

For a copy of the Mortgage Forgiveness Debt Relief Act of 2007, go to http://www.govtrack.us/congress/bill.xpd?bill=h110-3648.

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

INFORMATION FOR TAXPAYERS IN FORECLOSURE

Provided courtesy of the Internal Revenue Service

The IRS has developed information and Web resources to assist taxpayers with the tax issues presented by foreclosure.

Key Points:

*The Internal Revenue Service unveiled a special new section on www.IRS.gov for people who have lost their homes due to foreclosure.

*The IRS also reassured homeowners that although mortgage workouts and foreclosures can have tax consequences, special relief provisions can often reduce or eliminate the tax bite for financially strapped borrowers who lose their homes.

Resources:

*IRS 2007-159 – The news release IR 2007-159 provides additional background. The
news release and FAQs can also be found at http://www.irs.gov/newsroom/article/0,,id=174022,00.html

The direct link to the FAQ’s is http://www.irs.gov/newsroom/article/0,,id=174034,00.html

Santa Cruz Ballet Theatre presents The Nutcracker!

2008 California Market Forecast & Statistics Galore!

That's right! On October 10, California Association of Realtor (CAR)'s Vice President and Chief Economist, Leslie Appleton-Young, released the 2008 Real Estate Market Forecast for all of California.

Click HERE to access regional and state-wide statistics, detailed charts and graphs, a 2008 forecast and 2008 market opportunities!

For more information on taking advantage of this forecast and more, be sure to call me at 831-457-5550 or shoot me an email at frank@frankmurphy.net!

Pin the Tail on the Bottom of the Market!

All of us Realtors have been working with would be home buyers here in Santa Cruz. It seems all of them feel that they should wait until the housing market is at the bottom before they buy a home. Let’s look at an interesting take on "the bottom of the market" and how it will effect your buying decision....









This is a graph that represents the Santa Cruz housing market. The left side of the V represents the market going down, the right side represents the market going up, and of course the bottom of the V represents the bottom of the housing market.





If I asked you to plot on this

graph where you thought the housing

market was right now ...












... would you pick this spot or something close?



So you think that the market is going towards the bottom. If the market isn't at the bottom yet, how will you know when it does hit the bottom?

How will you know when the housing market hits the bottom?

Experience tells us you won't know that the housing market has hit the bottom until prices start to go back up. It will be difficult to be sure that the market has hit bottom for a few months. It’s not a sudden shift, it’s a gradual shift. You'll be able to tell that the market has turned when prices reach this point (green arrow).




What is the difference in housing prices between the red arrow and the green arrow?

Not much... but there is another difference: a major difference.

If you buy a home on the left side of the graph, it is considered a buyers market. You would be more likely to get concessions from a seller including price reductions, repairs, upgrades, closing costs, maybe even personal property.

If you wait until the market turns and you buy on the upswing, you and every other buyer that has been waiting for the market to hit bottom will be bidding on the same house.

There really is no better time to buy a house than now, and here are some reasons why:

1. There is a wonderful selection of homes to choose from right now.
2. Sellers are very willing to negotiate on price, terms and perks.
3. Interest rates are still at a historical low.

I'm suggesting we take a good look at the above examples and decide what percentage the prices will have to drop before a buyer thinks housing prices have hit bottom, and then offer that price. For example, if you think that prices will go down another 5%, then submit an offer at 5% below the asking price. Sellers will either counter, accept or decline. Then look at a loan payment based on current low interest rates. On an $875,000 home with an accepted offer 5% below asking, you'd end up at $831,250. Putting 20% down ($166,250) your loan would be $665,000. At 6% payments would run $3,325. If interest rates were to go up only half a point to 6.5%, the same home with the same $166,250 down would have to sell for $797,000 to end up with a similar loan payment.

The message here is to take advantage of the market today! Opportunity is knocking now!

Fed Cuts Interest Rates by A Quarter Point

Interest rates have indeed been cut again, moving down from 4.75% to 4.5%.

While the cut was expected, it is now thought to be unlikely that rates will be cut again for quite sometime.

Fed Chairman Ben Bernanke was forced to make a decision in light of both a "faster-than-expected" growth in the economy and the threat of falling home prices and a falling dollar. And now, of course, the argument arises over whether Bernanke and the Fed are truly able to keep inflation under control.

To read about the Fed's decision in more detail and the controversy that surrounds it, go to the Wall Street Journal's article: Fed's Rate Cut Could Be Last For a While

24-Hour Hotline Available to Help Avoid Foreclosure

According to Sentinel Staff Writer Jondi Gumz, "A national survey released Monday by the AFL-CIO reports that 49 percent of homeowners with adjustable rate mortgages admit they do not know how their mortgage adjusts and 73 percent do not know how much their mortgage payment will be after the adjustment.

"'This survey shows that many homeowners simply are not prepared for the steep rise in mortgage payments that this market inflicts on ARM [adjustable-rate mortgage] holders,' said AFL-CIO President John Sweeney.

"To help union members, their parents and their children who are trying to avoid foreclosure, AFL-CIO officials have opened a 24-hour hotline staffed by Money Management International, a HUD-certified counseling agency."

The "Save My Home" hotline is at 1-866-490-5361

To read Jondi's article in its entirety, go to Union Homeowners Know Too Little About Their Mortgage Payment

Fall 2007 Horticulture Lecture Series at Cabrillo College

Don't miss this five lecture series on Water Use in the Landscape, hosted by the Cabrillo College Environmental Horticulture Center.

Water is a critical natural resource that must be protected and used wisely. We will follow water's flow into our environment and see how it is used. Who is using the water and what are they using it for? Can you garden with limited water? Can you harvest the water that naturally falls on your property and use it later? What are the tools we can use to reduce your water application? And can this be done and still have all the coolest plants in your yard?

The series of five lectures is $40 when purchased as a group; or $10 per lecture if attended individually.

For more information go to http://www.cabrillo.edu/academics/horticulture/lectureseries.html

WHY YOU SHOULD PRICE YOUR HOME REALISTICALLY

TIME Chances are that your home will sell at its fair market value. Pricing it realistically at the outset simply increases the likelihood of a timely sale with less inconvenience and greater monetary return.

COMPETITION Buyers educate themselves by viewing many homes. They know what is a fair price. If your home is not competitive in value with those they have already seen, it will not sell. Buyers typically look at homes within a $10,000 price range. If your home is not priced within the correct range, it very likely will not be exposed to its potential or targeted buyers.

REPUTATION Overpricing causes most homes to remain on the market for too long. Buyers who are aware of a long exposure period are often hesitant to make an offer because they fear "something is wrong" with the house. It often happens that homes that are on the market for a long time eventually sell for less than their fair market value.

INCONVENIENCE If overpricing keeps your home from selling promptly, you can end up owning two homes - the one you've already purchased and the one you're trying to sell. This can prove costly and worrisome, as well as inconvenient.

EIGHTY PERCENT OF THE MARKETING OF YOUR HOME IS DONE THE NIGHT WE DECIDE AT WHAT PRICE WE WILL LIST YOUR HOME.

IF YOU ARE UNWILLING TO LIST YOUR HOME AT, OR JUST BELOW, THE

CURRENT MARKET VALUE YOU ARE BETTER SERVED NOT PUTTING IT ON

THE MARKET AT ALL.

FRANK MURPHY
831-457-5550

email Frank@FrankMurphy.net www.LiveInSantaCruz.com

Foreclosure Tax Relief Now Available to Many Through IRS Website!

Special Web Section Unveiled for Homeowners Who Lose Homes; Foreclosure Tax Relief Available to Many

IR-2007-159, Sept. 17, 2007

WASHINGTON — The Internal Revenue Service unveiled a special new section today on IRS.gov for people who have lost their homes due to foreclosure. The IRS also reassured homeowners that, although mortgage workouts and foreclosures can have tax consequences, special relief provisions can often reduce or eliminate the tax bite for financially strapped borrowers who lose their homes.

The new section of IRS.gov includes a variety of information, including a worksheet designed to help borrowers determine whether any of the foreclosure-related relief provisions apply to them. For those taxpayers who find they owe additional tax, it also includes a form they can use to request a payment agreement with the IRS. . In some cases, eligible taxpayers may qualify to settle their tax debt for less than the full amount due using an offer-in-compromise.

The IRS urges struggling homeowners to consider their options carefully before giving up their homes through foreclosure.

For more information visit the Internal Revenue Service website at www.irs.gov.

This article is courtesy of the Santa Cruz Association of Realtors.

7 FAST FIXES FOR YOUR CREDIT SCORE!

By Liz Pulliam Weston

So you've had a few problems getting the bills paid lately, and you're wondering what you can do to repair the damage.

You've got plenty of company. There are more than 30 million people in the United States with credit blemishes severe enough (and credit scores under 620) to make obtaining loans and credit cards with reasonable terms difficult.

Or maybe your credit is OK, but you'd like to make it better. After all, the better your credit, the lower the interest rates you can secure on mortgages, car loans and credit cards.
Know the score In order to improve your credit score, it's important to know where you stand currently. Despite all the media attention given to free credit reports, you still have to pay to find out your credit score, the three-digit number ranging from 300 to 850 that is the key to your borrowing costs. You can obtain your FICO credit scores, the ones lenders use, from MyFico.com. Or you can get Experian's "consumer education" version here.

Now you're ready to take the seven steps to speedy credit repair:

1) Pay down your credit cards. Paying off your installment loans (mortgage, auto, student, etc.) can help your score, but typically not as dramatically as paying down -- or paying off -- revolving accounts like credit cards. The credit-scoring formulas like to see a nice, big gap between the amount of credit you're using and your available credit limits. Getting your balances below 30% of the credit limit on each card can really help. While most debt gurus recommend paying off the highest-rate card first, a better strategy here is to pay down the cards that are closest to their limits.

2) Use your cards lightly. Racking up big balances can hurt your score, regardless of whether you pay your bill in full each month. What's typically reported to the credit bureaus, and thus calculated into your score, is the balance reported on your last statement. (That doesn't mean paying off your balances each month isn't financially smart -- it is -- just that the credit score doesn't care.) You typically can increase your score by limiting your charges to 30% or less of a card's limit. If you're having trouble keeping track, consider using a check register to track your spending, logging into your account frequently at the issuer's Web site, or using personal finance software like Microsoft Money or Quicken, which can download your transactions and balances automatically.

3) Check your limits. Your score might be artificially depressed if your lender is showing a lower limit than you've actually got. Most credit-card issuers will quickly update this information if you ask. If your issuer makes it a policy not to report consumers' limits, however -- as is the usual case with American Express cards and those issued by Capital One -- the bureaus typically use your highest balance as a proxy for your credit limit. You may see the problem here: If you consistently charge the same amount each month -- say $2,000 to $2,500 -- it may look to the credit-scoring formula like you're regularly maxing out that card.
You could go on a wild spending spree to raise the limit, but a more sober solution would simply be to pay your balance down or off before your statement period closes. Check your last statement to see which day of the month that typically is, then go to the issuer's Web site about a week in advance of closing and pay off what you owe. It won't raise your reported limit, but it will widen the gap between that limit and your closing balance, which should boost your score.

4) Dust off an old card. The older your credit history, the better. But if you stop using your oldest cards, the issuers may stop updating those accounts at the credit bureaus. The accounts will still appear, but they won't be given as much weight in the credit-scoring formula as your active accounts, said Craig Watts, an executive at Fair Isaac & Co., one of the leading credit scorers. That's why Ferguson often recommends to her clients that they use their oldest cards every few months to charge a small amount, paying it off in full when the statement arrives.

5) Get some goodwill. If you've been a good customer, a lender might agree to simply erase that one late payment from your credit history. You usually have to make the request in writing, and your chances for a "goodwill adjustment" improve the better your record with the company (and the better your credit in general). But it can't hurt to ask. A longer-term solution for more-troubled accounts is to ask that they be "re-aged." If the account is still open, the lender might erase previous delinquencies if you make a series of 12 or so on-time payments.

6) Dispute old negatives. Say that fight with your phone company over an unfair bill a few years ago resulted in a collections account. You can continue protesting that the charge was unjust, or you can try disputing the account with the credit bureaus as "not mine." The older and smaller a collection account, the more likely the collection agency won't bother to verify it when the credit bureau investigates your dispute. Some consumers also have had luck disputing old items with a lender that has merged with another company, which can leave lender records a real mess.

7) Blitz significant errors. Your credit score is calculated based on the information in your credit report, so certain errors there can really cost you. But not everything that's reported in your file matters to your score. Here's the stuff that's usually worth the effort of correcting with the bureaus:

-Late payments, charge-offs, collections or other negative items that aren't yours. -Credit limits reported as lower than they actually are
-Accounts listed as "settled," "paid derogatory," "paid charge-off" or anything other than "current" or "paid as agreed" if you paid on time and in full.
-Accounts that are still listed as unpaid that were included in a bankruptcy.
-Negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your report.

You actually have to be a bit careful with this last one, because sometimes scores actually go down when bad items fall off your report. It's a quirk in the FICO credit-scoring software, and the potential effect of eliminating old negative items is difficult to predict in advance.

Some of the stuff that you typically shouldn't worry about includes:
-Various misspellings of your name.
-Outdated or incorrect address information.
-An old employer listed as current.
-Most inquiries.
-If the misspelled name or incorrect address is because of identity theft or because your file has been mixed with someone else's, that should be obvious when you look at your accounts. You'll see delinquencies or accounts that aren't yours and should report that immediately. However, if it's just a goof by the credit bureau or one of the companies reporting to it, it's usually not much to sweat about.

Two more items you don't need to correct:
-Accounts you closed listed as being open.
-Accounts you closed that don't say "closed by consumer."

Closing accounts can't help your score, and may hurt it. If your goal is boosting your score, leave these alone. Once an account has been closed, though, it doesn't matter to the scoring formulas who did it -- you or the lender. If you messed up the account, it will be obvious from the late payments and other derogatory information included in the file.

4 other credit mistakes Other actions to beware when you're trying to improve your score:

-Asking a creditor to lower your credit limits. This will reduce that all-important gap between your balances and your available credit, which could hurt your score. If a lender asks you to close an account or get a limit lowered as a condition for getting a loan, you might have to do it -- but don't do so without being asked.
-Making a late payment. The irony here is that a late or missed payment will hurt a good score more than a bad one, dropping a 700-plus score by 100 points or more. If you've already got a string of negative items on your credit report, one more won't have a big impact, but it's still something you want to avoid if you're trying to improve your score.
-Consolidating your accounts. Applying for a new account can ding your score. So, too, can transferring balances from a high-limit card to a lower-limit one, or concentrating all or most of your credit-card balances onto a single card. In general, it's better to have smaller balances on a few cards than a big balance on one.
-Applying for new credit if you've already got plenty. On the other hand, applying for and getting an installment loan can help your score if you don't have any installment accounts, or you're trying to recover from a credit disaster like bankruptcy.

By the way, all these suggestions work best if you have poor or mediocre scores to begin with. Once you've hit the 700 mark, any tweaking you do will tend to have less of a positive impact.
And if your scores are in the "excellent" category, 760 or above, you'll probably be able to eke out only a few extra points despite your best efforts. There's really no point, anyway, since you're already qualified for the best rates and terms. Here's one area where it's really OK to rest on your laurels and worry about something else.

Liz Pulliam Weston's column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.

Prop 60 Tax Base Transfers

While Santa Cruz County allows Prop 60 transfers of a qualifying property tax basis from one Santa Cruz County property to another, it does not accept transfers from outside the county. For example, you can not transfer your basis from San Mateo County into Santa Cruz County. You can however transfer it within San Mateo County or into one of the other counties which accept inter-county transfers. Please contact me at frank@frankmurphy.net if you would like to receive the "Prop 60 Tax Base" brochure prepared by the Santa Cruz County Assessor's Office for a list of counties which accepted transfers when this brochure was prepared. You need to check the current status with any county you intend to transfer into to be sure they still accept transfers.

I hope this information proves helpful for you.

And remember, if you need any information about any real estate issues I will be glad to help provide resources for that info.

ON PREDICTING THE REAL ESTATE MARKET

Jeff Schoenfield, my colleague and fellow member of the invitation only Allen Hainge CyberStars, offers this opinion about predicting the real estate market. I couldn’t agree more!

"The real question (whether you are a potential buyer or seller) of course is when will the market turn? While I don't have a crystal ball you can be assured of one thing: The turn of the market will NOT be announced by headlines in USA Today and other national and local publications stating 'Real Estate Market Bottom Reached - Now Time to Invest!'. Rather, the news reported will still be mainly negative even as the market turns. We also do know that prices are the best they've been in some time and there are bargains available. By the time the market actually turns and everybody knows about it the best values will be behind us and buyers will have missed their opportunity to get a true bargain."

Jeff Schoenfield
Broker/Owner
RE/MAX All Pro, Realtors, Inc.
Gatlinburg, TN
Jeff@Gatlinburg-Homes.com

Show Your Support: Please Join Us in the FLY THE FLAG Campaign

On Tuesday, September 11th, 2007, an American flag should be displayed outside every home, apartment, office, and store in the United States.

Every individual should make it their duty to display an American flag on this sixth anniversary of our country's worst tragedy. We do this in honor of those who lost their lives on 9/11, their families, friends, and loved ones who continue to endure the pain, and those who today are fighting at home and abroad to preserve our cherished freedoms.

In the days, weeks and months following 9/11, our country was bathed in American flags as citizens mourned the incredible losses and stood shoulder-to-shoulder against terrorism. Sadly, those flags have all but disappeared. Our patriotism pulled us through some tough times and it shouldn't take another attack to galvanize us in solidarity. Our American flag is the fabric of our country and together we can prevail over terrorism of all kinds.

Thank you for your participation.

WEEKLY STATS FOR SANTA CRUZ COUNTY SINCE JANUARY 1, 2007

COUNTRYWIDE ACKNOWLEDGES HOUSING MARKET WOES

On July 24th Countrywide Financial acknowledged that the housing market "might not begin recovering until 2009 because of a decline in house prices," and that even borrowers with good credit are starting to fall behind on their loans. This announcement triggered a sell-off in the stock market, and signals a shift toward a more skeptical view of the future of the housing market than that to which many executives have previously held. According to Vikas Bajaj of the New York Times, Angelo Mozilo, Countrywide's chairman and chief executive, said that "because of a large number of homes on the market, the housing sector would continue to suffer until sometime in 2008 and not begin recovering until 2009."

As a result of the downturn, major lenders such as Countrywide, Wells Fargo, and others have stopped offering risky sub-prime mortgages. But it isn't just sub-prime borrowers who are struggling with payments. Even "credit-worthy" customers are showing the potential to default as home prices fall. "Countrywide said about 5.4 percent of the home equity loans to customers with good credit that it held an interest in were past due at the end of June, up from 2.2 percent at the end of June 2006."

To read the article in its entirety and see detailed statistics, go to Top Lender Sees Mortgage Woes for ‘Good’ Risks

SANTA CRUZ COUNTY HOME SALES STATS

Santa Cruz County's median home price $757,000 in June
By JONDI GUMZ, Sentinel staff writer

SANTA CRUZ — Despite a real estate slowdown nationwide and the growing numbers of county homeowners missing their mortgage payments, one segment of the Santa Cruz housing market is buoyant: high-end homes.
Six homes in Santa Cruz County sold for more than $2 million in June, matching the number of $2 million-plus sales in April.

View a map of the six homes sold for more than $2 million in June.

Case in point: a 4,250-square-foot home with an ocean view and a wine cellar in the gated community of Monte Fiore in Scotts Valley sold for the listed price: $2.25 million. "There were three interested parties and it was more of a race," said Mark Oliverez, a real estate agent with Alain Pinel who represented the seller and the buyer.

In fact, of the 164 sales in June, 40 were for $1 million or more, a higher percentage than in May. The high-end market phenomenon gained attention last week in The New York Times, which reported that sales of homes priced at more than $1 million are up in Boston, New York and Miami.

In Santa Cruz County, affluent buyers are willing to pay higher prices for ocean-view homes.

June statistics

Single family homes
Sales: 164
Listings: 1,292
Unsold inventory index: 7.9 months
Median price: $757,000

Condos
Sales: 32
Listings: 289
Unsold inventory index: 9 months
Median price: $560,000

Source: Real Options Realty

The increasing number of high-end sales in Santa Cruz County is keeping the median home price high, at $757,000 in June, a barely perceptible dip from $760,000 in May. But the number of overall sales is down in comparison to the red-hot market of three years ago, when more than 250 homes sold in June. This year's June sales, 164, are the fewest since 2001, according to Gary Gangnes of Real Options Realty, who compiled the monthly statistics. The current housing inventory is at a 10-year high with 1,292 listings.

For those hoping more for-sale signs saying "reduced" would mean the median sales price would fall into the $600,000 range, it's just not happening. In many parts of the county, asking prices are high. The average listing price is more than $1 million in Aptos, Capitola, Davenport, Santa Cruz, Scotts Valley, Soquel, according to Gangnes, although he cautioned that listing prices do not reflect sales prices.

Sales of pricey homes rebound

April
Median sale price: $774,375
Number of sales: 128
Sales over $1 million: 35

May
Median sale price: $760,000
Number of sales: 147
Sales over $1 million: 27

June
Median sale price: $757,000
Number of sales: 164
Sales over $1 million: 40

Source: Real Options Realty

Ocean-view homes, and those within walking distance of the ocean are selling for more than $1 million, longtime agent Tony Aprile said. Patti Boe of American Dream Realty said she was too busy showing homes to have an extended conversation Friday. "I have seven escrows," said Boe, who was involved in two of the six $2 million-plus sales in June.

Kelley Trousdale, who sold a Rio del Mar home in June for $4.5 million, said high-end buyers tend to be people from the Central Valley with disposable income and a yen for a second home with a beachfront. Other agents said high-end buyers include local residents. The buyer of the Scotts Valley home was trading up from a property in Felton, but one of the other prospects was a New Yorker who had sold a business and wanted to move back to Santa Cruz.

Frank Murphy, who represented a buyer who paid $2.5 million for an ocean-view home on the Santa Cruz Westside on Refugio Road, said his clients lived in Santa Cruz but wanted acreage close to the city. Murphy also had a San Mateo prospect who has sold a business and was looking for the right location for a family compound. Two deals fell out of escrow when flaws in the property came to light, and the client ended up buying in Sebastopol.
That's typical for a high-end shopper.

"People can afford these homes and they don't want to settle or compromise," said Oliverez, using the word "cherry-picking" to describe the market. That's why Aprile went to the trouble of bringing in Erin Blackburn to "stage" the Refugio Road home, which was otherwise vacant.
"It's almost a requirement in this market," Aprile said. "When they see the furniture they tend to slow down"

Victoria Pendorf represented the Napa Valley buyer of 302 Cherry Ave. in Capitola, which sold for $3 million. She called the ocean view "amazing — you don't want to leave" The Napa Valley buyer is in the "pre-retirement" crowd, a demographic that could generate more high-end buyers.

The Silicon Valley tech rebound is another factor in the high-end market.
Oliverez mentioned a client who came from Arizona to work in high-tech and bought a $2.6 million home in Los Gatos. "You're not seeing layoffs, you're seeing hiring," he said. "Relocation buyers are out there"

Contact Jondi Gumz at jgumz@santacruzsentinel.com.
Copyright © Santa Cruz Sentinel. All rights reserved.

MEDIAN HOME PRICE FALLS BUT HIGH-END HOMES ARE STILL SELLING

While it may be good news to hear that the median home price for a single-family residence in Santa Cruz County dropped by 2% to $760,000 in May, the truth is that this price is still not affordable for most first-time buyers. Compounding the problem is the fact that an increase in foreclosures has led to no-income-verification, no-down payment mortgage options being "taken off the shelves."

Those who have the money "to pay cash or leverage their existing properties" are still in the game in Santa Cruz County, however. According to Gary Gangnes of Real Options Realty, 27 homes sold for more than $1 million in May and 6 of those sold for more than $2 million.

While the dip in median home price seems too little for those who need a mortgage, the news shines a ray of hope in unexpected places. According to Jondi Gumz of the Santa Cruz Sentinel, UCSC welcomes the price drop as it finds its junior faculty leaving town for more affordable housing. Faye Crosby, the chair of UCSC's academic senate, says the new median is great news for the university's recruiting efforts.

To read Jondi Gumz' article in its entirety and to see market statistics for Santa Cruz County for the month of May, go to Median Home Price Dips to $760,000.

SCAM WARNING: "DEED" MAILERS

District attorney: Discard deed mailers

By Jennifer Squires, Sentinel staff writer

The District Attorney's Office is advising homeowners that a rash of mailings to county residents this week offering deeds at a price is not a government-sanctioned solicitation.

The mailers, sent by the Washington, D.C.-based National Deed Service, offer homeowners a chance to buy copies of their property deeds for $59.50. The solicitation is not illegal, but could be deceptive, said Robin Gysin, the consumer affairs coordinator at the District Attorney's Office, adding the company is not affiliated with any governmental agency.

A property deed is the document that transfers ownership in a real estate transaction. Gysin suggests people who receive the mailer simply throw it away. "I'd probably rip it up or shred it," Gysin said.

Gysin said 15-20 people have contacted her this week reporting the mailing. None of them sent the company any money, she said. "I actually got one at home. They sent one to my house," Gysin said. The mailers have been reported across the country.

The company has collected property title information from the county Recorder's Office, which has all recorded documents on file. However, anyone can obtain copies of the documents at any time for about $12 at the county Recorder's Office and it's unnecessary to pay someone else for the information, according to the District Attorney's Office.

Gysin warned county residents to be wary of solicitations that arrive in the mail and asked they call her office at 454-2050 with questions.

Contact Jennifer Squires at mailto:jsquires@santacruzsentinel.com?subject=District.

HOPEFUL FED WON'T CUT RATES

The Dow Jones fell more than 80 points on June 5th after a widespread realization that there is "almost no chance" that the Fed will cut interest rates by the end of the year.

The Fed chairman, Ben Bernanke, said "that the Fed expected the economy to pull out of its current funk and weather the slowdown in the housing market."

While investors have recently been expecting a rate cut by the end of the year, leading economists are noting that the slowly strengthening economy gives the Fed little reason to buffer against "a worse-than-expected slowdown" for now.

To read Jeremy Peters' article in its entirety, go to Fed Dims Hopes For A Rate Cut

5th ANNUAL BONNY DOON ART & WINE FESTIVAL @ THE BONNY DOON AIRPORT, THIS SATURDAY!

Saturday, June 2 1:00 PM to 4:30 PM

The Bonny Doon Community School Foundation invites you to the 5th Annual

Bonny Doon Art & Wine Festival

Proudly sponsored by:

State Farm Agent, Aleene Althouse;

Farmer's Insurance Agent Doug Banks;

Tristar Home Loan Services, Inc. Stacy Theilen

New location!!! Bonny Doon Airport Gardens

8647 Empire Grade

Plenty of free on-site parking

Enjoy wine tasting from dozens of our world class local wineries,

live entertainment, delicious appetizers and non-alcohol beverages,

live and silent auctions with amazing items!

Renowned Local Artist, Joao de Brito is featured this year and will be there to discuss his work

Other local artists whose work will be available at auction include:

Mattie Leeds * Therese Basinger * Janet Lever-Wood * Musi * Kate Nolan

Advance Tickets are $25 before May 28th, $35 at the gate

Includes souvenir wine glass. Ticketing is limited, so order tickets now.

School age childcare is available for a nominal fee at BD Elementary, but you need to sign up.

All proceeds benefit the Bonny Doon Community School Foundation which supports the Bonny Doon School through special program funding.

Send check with attendee name, phone and address to:

BDCSF, PO Box 8089, Santa Cruz, CA 95061

Or call 831-457-8098 for credit card purchase or more info.

Effective Real Estate Sales for Web 2.0

Reality Magazine recently published an article describing the benefits of a group to which I belong called the Allen F. Hainge CyberStars. CyberStars includes 201 Realtors, both here in the States and abroad, who are at the top of their market and interested in conversing about the very latest technology that will help sell homes for the most amount of money in the least amount of time.

In the midst of Web 2.0--"the Internet’s progression of social-networking and media-sharing sites"--staying web-savvy for a Realtor no longer means simply having a website. Allen Hainge and his group are committed to finding the latest "technology tools," including the incorporation of digital video, podcasts, blogs and MySpace pages.

Because my fellow CyberStar members are "market leaders—the higher-power group" who are necessarily willing "to share ideas on how technology increases profit, and how we can make our Web sites better to contact buyers and sellers," my clients are truly the ones who benefit from this association.

To read more about how CyberStars got started and hear what other members have to say about the group, go to Techie Supernovae Explode in Real Estate Market

To take a look at my own website, go to www.LiveInSantaCruz.com

MEDIAN SANTA CRUZ SALES PRICE FOR APRIL NEARS RECORD: HIGH-END HOMES ARE ALL THE RAGE

While some say that the real estate "bubble" has burst and the number of foreclosures in Santa Cruz County continue to be relatively high, multi-million dollar homes continue to sell. The median sales price for April was $774,375--that's just 2% off of the record $789,250 from November of 2005 according to Jondi Gumz of the Santa Cruz Sentinel.

Six different residential properties sold for more than $2 million in April, demonstrating that "the money is out there" (Margaret Julien of David Lyng Real Estate) and people are still very willing to pay.

Bernadine Brumfield, a Santa Cruz real estate agent, believes that these high-end homes that have been appreciating for many years will continue to sell easily as baby boomers move into retirement.

To read the article in its entirety and to see which homes sold for more than $2 million, go to Buyers Snap Up $2 Million Homes

FED REFUSES TO LOWER INTEREST RATES FOR NOW

Almost one year ago the Fed set the interest rate on overnight loans at 5.25% in response to rising inflation rates. Today, not much has changed.

As of May 9th, the Fed has decided to keep the same interest rate of 5.25%, saying that inflation is still a "predominant policy concern." While many note that lack of job creation and the "meltdowns" of the housing and auto markets signal slow economic growth, the Fed contends that overall the economy is growing at a rate that continues to create inflation pressures.

Because of these mixed signals, and due to a lack of long-term evidence, the Fed has made it clear that it wants to keep its options open and maintain flexibility.

To read the New York Times article in its entirety, go to Fed Gives No Signal of Rate Shift.

HOUSES IN UNUSUAL PLACES!

GOVERNMENT PROGRAM HELPS FAMILIES STAY IN THEIR HOMES

WASHINGTON - More than 36,500 families have been able to stay in their homes and avoid foreclosure this year thanks to the U.S. Department of Housing and Urban Development's Federal Housing Administration (FHA) comprehensive lending relief measures. The FHA's Loss Mitigation Program gives lenders who provide FHA-insured mortgages the authority and responsibility to assist homeowners who have fallen into financial difficulties with their home mortgages.

"Owning a home is the American Dream, and the last thing we want is for families to see their dream turned into a nightmare. FHA lending relief measures continues to help families around the nation work through difficult times, stay in their homes and avoid foreclosure," said HUD Secretary Alphonso Jackson.

Since last October, the FHA Loss Mitigation Program has helped 36,512 families, who are behind on their mortgage payments, keep their homes. In Fiscal Year 2006, this program helped 75,000 families with FHA-insured loans continue to enjoy the benefits of homeownership. In total, there are currently nearly 4 million homeowners in FHA homes.

The potential loss of a home, due to unexpected events such as unemployment or illness, can be financially and personally devastating. But it can be avoided by taking the right steps. Under the FHA Loss Mitigation Program, lenders have the ability to offer borrowers a number of HUD-approved options for avoiding foreclosure, including:

• Special Forbearance: This option can include a temporary reduction or suspension of a mortgage payment until the borrower can reestablish financial stability, or a permanent revision in the payment amount to reflect a borrower's new and reduced financial status.
• Modifications: The lender can rewrite the mortgage note in order to roll delinquent amounts into the principal or extend the term of the loan to reduce monthly payments.
• Partial Claim: FHA's insurance fund makes a one-time payment to bring the mortgage current, which becomes an interest-free subordinate mortgage due when the insurance is terminated.
• Pre-Foreclosure Sale: The borrower avoids foreclosure by selling the property for its appraised value even if the proceeds are not enough to pay off the mortgage.
• Deed-in-Lieu of Foreclosure: This option is a negotiated settlement where the borrower deeds the house back to the lender, saving the borrower all of the credit ramifications of a foreclosure while also saving the government some legal costs.
  

For more information on how families with FHA-insured mortgages can avoid foreclosure, visit www.hud.gov/foreclosure/ or call 1-800-CALL-FHA.

Article courtesy of the Santa Cruz Association of Realtors.

THE DRAWBACKS OF MULTITASKING REVEALED

Although checking email while listening to your iPod and trying to study or talking on you cellphone with a hands-free headset and driving at the same time might seem save you valuable minutes throughout the day, New York Times columnist Steve Lohr says that recent studies reveal the opposite effect.

Vanderbilt University published findings last December that show the brain's ultimate loss of efficiency when trying to handle two tasks at once. Though the delays may be only seconds long, the difference is crucial when considering response time while driving at high speeds.

Oxford University recently completed a study demonstrating that young people have equal difficulty to older adults when it comes to remaining efficient while multitasking.

While there is a point at which multitasking creates an optimum work efficiency, more intense multitasking--constantly checking emails, answering every phone call--will ultimately lead to a loss in productivity.

To read the article in its entirety, please go to Slow Down, Brave Multitasker.