On July 22, 2011, Gov. Jerry Brown signed Senate Bill 458 (Corbett) into law.  The new law, which contained an urgency clause and became effective upon signing, protects homeowners pursuing short sales by barring first and secondary lien holders from going after sellers for money owed after the short sales close. This has helped many of my clients decide to go this route in lieu of a foreclosure on their credit report. This is favorable legislation  for owner occupants who may be eligible to purchase another home in as little as 3 years from the date of the short sale. According to Foreclosure Radar, as of this writing, there are currently close to 7,000 homes in the pre-foreclosure (more than 90 days late on mortgage payments) stage in San Bernardino County  alone.  Also, in addition to loan forgiveness,homeowners may be eligible for up to $3,000 through the HAFA (Home Affordability Foreclosure Alternative of 2009).  HAFA provides incentives in connection with a short sale and provides up to $3,000 for borrower relocation assistance.  Unfortunately, The HAFA program will expire on December 31, 2012. Close this chapter of your life on your terms. Call to speak to one of our experienced Real Estate consultants.

Some good news for Redlands, CA. According to Foreclosure Radar,  foreclosure filings are down by 42.4% over this time last year. However, the market still remains bearish. On a positive note for potential home sellers, the current inventory is marginal at best and standard sales can command a premium over short sales and REO’s.

Andy Rooney said on his last regular cantankerous appearance on 60 Minutes that “there are so many things going on in today’s world that it would be impossible not to write a weekly column!”  That’s exactly how I feel about Real Estate.  There are so many things going on in today’s real estate market that it’s not very hard to write about.  Everyone has an opinion on today’s real estate market.  Today, I heard from an economist with Freddie Mac, Frank Nothaft, at a conference that I attended in Rancho Cucamonga. He spoke about our current economy for both Riverside and San Bernardino County. He stated what we all know, that the Inland Empire has the worst unemployment in the nation and that homes fell drastically in value compared to the nation.  When he was asked by an audience member about his long term prognosis for the home values in the Inland Empire; he said that it would be a very long time before they reached the peak levels of 2006. I totally agree with him except that I believe it won’t be reached for another 25 years.   The book entitled, “How to Protect Your Life Savings from Hyperinflation and Depression” by John T. Reed, makes mention that home values didn’t rebound for a whole generation during the Great Depression. The future of the Real Estate market for the Inland Empire won’t see a rise in value for a very long time.  I don’t want to sound pessimistic to my fellow investors and future home buyers but there has been a paradigm shift. No longer are we seeing homes as an investment vehicle for immediate price appreciation. Properties are now being looked at for income potential similar to a bond that pays out monthly dividends through rental income.  Also, from a first time home buyer’s perspective, a home is being looked at not so much as an “investment” that will appreciate but truly as a home where they will raise their families and are looking at extrinsic factors like the type of schools that are nearby and local amenities.  In addition, first time home buyers are realizing that they can now purchase a home and find that their mortgage payment will be less than their rent payment.  Especially with today’s all time historically low interest rates in the 4’s and home prices plummeting in values.  That is, if they meet the 4 C’s which are Capacity, Capital, Credit and Collateral.

Click below for our current listings!

http://www.vflyer.com/home/Listing.jsp?acctId=1314293

As of this writing, the City of Redlands has 40 Single Family Residential Active homes for sale. I did not include commercial or income producing properties in this tally and pulled the data from our local MLS which only include active listings (not pending sales).

Click the link for the list!