California Realtors Offer Mortgage Assistance for Unemployed


The California Association Of Realtors recently launched a new program that allows home sellers to purchase mortgage protection coverage and offer it as an additional incentive to home buyers who purchase their home.


• The “Home Payment Protection Program” (HPPP) is available through California realtors who offer it to sellers at the time the property is listed.  HPPP is optional, is paid for by the seller, and costs either $200 or $275, depending on the amount of coverage the seller elects to purchase.
• The program covers both first-time and repeat buyers for 12 months from escrow closing. If the home buyer loses his or her job as a result of a layoff during the qualified time period, HPPP will pay the buyer up to six monthly payments of up to either $1,000 or $1,500, depending upon the level of coverage the seller chose at the time of the listing.  
• The payment for HPPP is made at the time of closing, per the seller’s escrow instructions.  HPPP remains on the property for as long as it is listed with the REALTOR® under the original listing contract.  The buyer cannot renew, extend, or enhance the coverage under the HPPP, nor purchase it independently.  
• Sellers who would like to offer the Home Payment Protection Program should ask for an application from their realtor who can find information about the program and an application at www.cynosurefinancial.com/car.

Let’s take a look at a few Christmas presents you can buy yourselves from the extreme to the affordable. . .

1218 PORTOLA ROAD, Pebble Beach MLS #: 81056618 $3,750,000 Beds: 4 Baths: 5 (3/2) 
Gorgeous estate with outstanding OCEAN VIEWS overlooking Cypress Point Golf Course. Completed in 2008, home exemplifies the best of classical features w/ modern conveniences. Open floor plan, cathedral ceilings, Brazilian Cherry floors, radiant heat, slate roof, custom fireplaces, gourmet kitchen, 3 car garage, 2 fully fenced acres, short distance from the Lodge, perfect blend of privacy & convenience.  SqFt: 6,000 Lot Size: 91,955 Sqft

1410 MANOR ROAD, Monterey MLS #: 81056834 $1,525,000 Beds: 3 Baths: 4 (3/1) 
Walking into this primarily single story home, you notice the luxurious amenities throughout. The incredible gourmet kitchen opens to the dining & family room surrounded by huge picture windows that show a big, private backyard w/outdoor kitchen. The master suite boasts private patio, 2 large walk-in closets & spa-like bath. Upstairs is a full apartment w/KIT & separate entrance. 5 car garage is great perk!  SqFt: 3,255 Lot Size: 77,305 Sqft

501 TOYON DRIVE, Monterey MLS #: 81057556 $530,000 Beds: 3 Baths: 2 (2/0) 
Attractive Toyon Heights home. Large deck in back overlooks the canyon. Freshly painted & carpeted--just move in. Hardwood floors under carpeting.  SqFt: 1,250 Lot Size: 17,226 Sqft

46 LOS ENCINOS DRIVE, Del Rey Oaks MLS #: 81056342: $449,000 Beds: 3 Baths: 2 (2/0) 
Beautiful home with hardwood floors throughout main areas and custom tile in kitchen. Large "eat in" kitchen, inside utility room, newer double pane windows except kitchen.  French door, newer roof, newer furnace and dishwasher, lots of skylights, and a huge rear yard. Beautiful views from living room. Fireplace. Home is in lovely condition!  "tree house" in rear yard.  SqFt: 1,241 Lot Size: 14,500 Sqft

300 GLENWOOD CIRCLE,#302, Monterey MLS #: 81056346 $200,000 Beds: 1 Baths: 1 (1/0) 
Top of the line one bedroom condo.  Granite counters, hardwood floors, stainless steel appliances. Largest one bedroom floorplan.  SqFt: 760

© Patty Ross, KRXA Radio Show #187  December  17, 2010

Sellers Not Liable to First Lien Holders After a Short Sale

We all know that a short sale is when the bank forgives the difference between what the seller owes and what they sell the house for.  A new law, SB 931 which goes into effect January 1, 2011, provides that lenders who approve a short sale on a residential (1-4 unit) property where they are the primary lien holder, have no right to pursue the borrower/seller for any deficiency or loss as a result of consenting to and accepting the short payoff.

This is huge, as up to now there has been the unanswered question, can the bank come after us for the difference between what we owed and what they made from the sale.

Some details:

1.  The consent of the first deed of trust holder to a short payoff obligates that holder to accept the short sale proceeds as full payment, and to fully discharge the remaining amount of the indebtedness on the note secured by at deed of trust. 

2.  This new law applies to ALL first deed of trust holders, whether purchase money, refinance, investor, etc.
3. The law does not apply if the borrower/seller is a corporation or political subdivision of the state.

4.  This law does not apply to any junior lien holders; e.g., second or third lien holders.

Effective Date:
While the law itself goes into effect on January 1, 2011, it does not specify what happens as of that date.  Is it new contracts ratified after that date?  Is it contracts that close after that date?   etc.
While not clear, it is LIKELY, but not a certainty, that this law applies to written consents received by short sellers from lenders after that date.  However, in every case you MUST consult your own attorney on this point. 

We’re going to take a look at all short sales today, all good values, so listen up…

91 CORONA ROAD, Carmel Highlands MLS #: 81006931 $1,400,000 Beds: 3 Baths: 3 (3/0)
$400,000 price reduction!  Park-like setting and early California Architecture,  this  Highlands home has it all.  High end kitchen, lush mature gardens, plenty of privacy and recent complete remodel.  Turn key potential.  SqFt: 2,900 Lot Size: 40,510 Sqft    check out photos on site www.pattyrosscarmel.com   |  short sale

24309 SAN PEDRO LANE, Carmel MLS #: 81029730 $775,000 Beds: 2 Baths: 2 (2/0)
Comfortable Carmel Cottage in Carmel woods. Upgraded master bedroom suite, plus separate entrance home office.  Large lot next to Pescadero Canyon greenbelt for added privacy.  Granite kitchen counter tops.  Located on top of Carmel Woods surrounded by decks and nature.  SqFt: 1,600 Lot Size: 7,000 Sqft    |  short sale

779 ALICE STREET, Monterey MLS #: 81051072 $479,000 Beds: 3 Baths: 2 (2/0)
Top-of-the-hill New Monterey home; spacious reverse floor plan w/vaulted ceilings & lots of light upstairs w/open family room-kitchen w/balcony for bbq; master upstairs, 2 beds, 1 bath & laundry on first floor; level lot is ideal for low-maintenance gardening w/private deck in back yard; quiet street is perfect walk to DLI; quick trip to downtown PG, Cannery Row, Monterey Bay and Aquarium!  SqFt: 1,438 Lot Size: 2,500 Sqft  |    short sale

1663 LAGUNA STREET, Seaside #: 81055524 $400,000 Beds: 4 Baths: 2 (2/0)
Bank has extended time to submit offers until 1/2011 & receive bank approval for short sale of $400K Unbelievable views, ocean, mountain & city lights!  Spacious & open floor plan, great for entertaining around the fireplace in living room under the soaring ceilings or step out on to the deck & enjoy the views!  Reports available for your review.  SqFt: 2,147 Lot Size: 3,750 Sqft  |   short sale


© Patty Ross, KRXA Radio Show #186, December 10, 2010

The Real "Price" of a “No-Cost” Loan

Just a quick mention about my previous post about the show...Last week we talked about the “Keep Your Home California” program.  One of the logistical complications that has caused the delay is the fact that Fannie Mae and Freddie Mac last week instructed their loan servicers to participate in the program, dramatically increasing the number of potentially eligible homeowners.  Will keep you posted on that. . .

This week, we look at the real costs associated with a "no-cost" loan

Some homebuyers who may be concerned about paying high closing costs might be tempted by a “zero-cost” or “no-cost” loan option, which requires no cash outlay, but typically adds a half percentage point to the rate. 

However, some financial consultants say these loans tend to be most beneficial to buyers planning to have the loan for less than five years.

Making sense of the story
    •    One of the primary differences between a no-cost loan and similar loans is that no-cost loans do not tack on closing costs to the balance, but instead increase the rate.

    •    With no-cost loans, third-party fees including the appraisal, credit report, title insurance, recording, and the use of a mortgage broker are paid by the lender.  The fees, including the amount the broker is being paid, are disclosed on the closing statement.

    •    Home buyers who bypass a broker and work directly with a lender may encounter less transparency, as loan officers are not required to disclose the amount the bank is making on the loan.

    •    Borrowers weighing their loan options are advised to use a mortgage amortization calculator to compare the costs for a conventional loan compared with a no-cost loan.  The Federal Reserve provides an amortization calculator on its Web site at www.federalreserve.gov.

574 WATSON STREET, Monterey MLS #: 81015217 $1,995,000 Beds: 5 Baths: 4 (3/1) 
One of the most unique & beautiful homes in Monterey. This Craftsman Cape Cod style home has been completely remodeled.  Spectacular views of Monterey Bay, mountains, and city lights from the master bedroom and viewing room. The home's luxurious interior is spacious and the workmanship is something to marvel at.  SqFt: 4,900 Lot Size: 34,557 Sqft

384 CORRAL DE TIERRA , Salinas Monterey Highway #: 80828203 $1,530,000 Beds: 1 Baths: 1 (1/0) 
Seller Financing or partial Property Trade for navigable waterfront property!  16 yr old guest house on gated 10acre parcel. Can be purchased separately or with adjoining three 10 acre parcels for a fabulous 40 retreat/estate!!  SqFt: 1,488 Lot Size: 10 Acres

4041 EL BOSQUE DRIVE, Pebble Beach MLS #: 80941855 $1,495,000 Beds: 3 Baths: 3 (3/0) 
This single story, unfinished Mediterranean Style home, offers an open & spacious floor plan high ceilings  & beautiful , custom windows. Extra wide front entrance Door.  Living room, casual dining rooms & family room with fireplace,  a spectacular gourmet kitchen.  Plan has radiant floor heating with tiles/granite.  Great value in PB, owner will complete the home at this price  SqFt: 3,300 Lot Size: 12,870 Sqft

0 SW CORNER OF MONTE VERDE AND 12Th STREET, Carmel MLS#: 81050665 $1,150,000 Beds: 2 Baths2 (2/0) 
Here's the perfect Carmel getaway.  All freshly painted and updated and all new granite kitchen. Located on a corner lot in the Golden Rectangle.  SqFt: 1,342 Lot Size: 4,000 Sqft  Come see me this weekend Sat  2-4 & Sun 1-4.

461 DELA VINA AVENUE,#205, Monterey MLS #: 81052880 $189,000 Beds: 2 Baths: 1 (1/0) 
Conveniently located in Monterey, close to shopping and restaurants, this condo has so much to offer! Large closets, sky lights to let in natural light, in-unit laundry, surplus of storage and covered parking. The large patio is a great place to enjoy the peace and quiet this complex offers & the kitchen/dining/family/great room is large, inviting and oh so cozy!  SqFt: 970 Lot Size: 921 Sqft 

©  Patty Ross, KRXA Radio Show #184  November 12, 2010

Keeping Your Home in Challenging Times

The U.S. Treasury Department has approved CalHFA's plan to use nearly $700 million in federal funding to help California families struggling to pay their mortgages.

Keepyourhomecalifornia.com 

The Keep Your Home programs are focused on assisting low and moderate income families stay in their homes, when possible, and leveraging additional contributions from lenders and mortgage servicers.
Primary objectives for the Keep Your Home Programs include:

• Preserving homeownership for low and moderate income homeowners in California by reducing the number of delinquencies and preventing avoidable foreclosures
• Assisting in the stabilization of California communities

Each of the Keep Your Home programs is designed to address one or more aspects of the current housing crisis by doing the following:

• Helping low and moderate income homeowners retain their homes if they either have suffered a financial hardship such as unemployment, have experienced a change in household circumstance such as death, illness or disability, or are subject to a recent or upcoming increase in their monthly mortgage payment and are at risk of default because of this economic hardship when coupled with a severe decline in their home's value.
• Creating a simple, effective way to get federal funds to assist low and moderate income homeowners who meet one or all of the objective criteria described above. Speed of delivery will be balanced with fulfillment of the specific program's mission and purpose.
• Creating programs that have an immediate, direct economic and social impact on low and moderate income homeowners and their neighborhoods.

The program was due to begin Nov. 1^st but has been delayed several weeks due to logistical issues – more on that next week..

MY TOP PICKS FOR THE MONTEREY PENINSULA REAL ESTATE MARKET:

4 YANKEE POINT DRIVE, Carmel Highlands MLS #: 81051778 $949,000 Beds: 3 Baths: 2 (2/0)
Yankee Point Home under $1.0M! Views of the ocean, key to beach, many fresh details, best of appliances, Fruit trees large side yard, very private nestled among the trees. Decks with plenty of outdoor area to entertain. Home shows pride of ownership in all respects. Everything is in wonderful move-in condition. Regular sale. Estate sale everyone is motivated.  SqFt: 1,808 Lot Size: 19,084 Sqft

4235 CANADA LANE, Carmel 93923 MLS #: 81021878 $629,000 Beds: 3 Baths: 3 (2/1)
MOVE-IN READY SPACIOUS HOME ON A QUIET CUL-DE-SAC IN AWARD-WINNING CARMEL SCHOOL DISTRICT. NEW CARPETING & INTERIOR PAINT THROUGHOUT, NEW STAINLESS STEEL APPLIANCES, VAULTED CEILINGS, LIGHT, BRIGHT & SPACIOUS 3 BEDROOMS, MASTER BATH HAS SEP TUB & SHOWER, DUAL SINKS, ALL BEDROOMS OPEN ONTO DECKS TO TAKE IN THE FORESTED VIEWS. LARGE 2 CAR GARAGE + CIRCULAR DRIVE.  SqFt: 1,880 Lot Size: 17,859 Sqft

38350 LAUREL SPRINGS ROAD, Carmel Valley MLS #: 81027147 $595,000 Beds: 1 Baths: 1 (1/0)
The Magic Kingdom - 40 acres of complete privacy, mature oaks & madrones, open meadows. Wonderful mountain views, well-built cabin in like-new condition. Energy self-sufficient property. Gently rolling meadow - ideal for construction of new home, horse barn, and paddocks. Locked security gate, video camera system on property. Located about 50 minutes' drive from Carmel. Live close to nature.  SqFt: 840 Lot Size: 1,743,358 Sqft

1077 AMADOR AVENUE, Seaside MLS #: 81028692 $198,888 Beds: 2 Baths: 1 (1/0)
Bay views from front yard. Sale to be "As Is"--major fixer upper subject to short sale approval.  SqFt: 864 Lot Size: 5,000 Sqft

© Patty Ross KRXA Radio Show #183  November 5, 2010

Breathe Easier: 5 Tips to Banish Mold from the Home

I hesitated talking about this issue (not uplifting) until I found actual mold under the floor in the bathroom of my very own house this week! I live in a 1932 cottage in Carmel. Living on a peninsula opens us up to a bit more of this issue than in dryer areas. Often, our first encounter with mold at home occurs in that infamous spot between the shower curtain and tub. It’s pretty disgusting, but it’s easy to wipe up. Unfortunately, in most homes, this isn’t the extent of the mold—the more problematic mold is the insidious kind, hiding behind walls and in floorboards, and potentially contributing to a range of allergies and other illnesses.

What causes mold? Surprisingly, advanced building materials are one of the main culprits. An aging home is at even greater risk, as normal occurrences like window and roof leaks bring in even more moisture—and moisture is a direct cause of mold. Limited ventilation or sunlight only makes the problem worse.

How do you find the mold in your home? Sometimes it’s easy—it may be right in front of you, or you’ll find it by its distinctly musty smell. Though it’s harder to find hidden mold, you can do so by looking behind and beneath fixed materials and appliances: refrigerators, dishwashers, sink cabinets, washer/dryers, carpets, vinyl flooring—anywhere near where water flows or where air doesn’t penetrate readily. Also, look for signs of discoloration on walls and ceilings; this can denote a moisture buildup behind which mold may lurk.

Once you find the mold, remove it with a store-bought anti-fungal solution, or get rid of it with a weak bleach solution—1 cup bleach in 1 gallon of water. But even more important than removing it is eliminating as many of its causes and sources as possible.

Follow these 5 tips to drastically reduce the mold in your home:

1. Call in a home inspection professional to assess water-damaged areas.

2. Keep humidity low. Humidity levels should be under 40% in order for mold to stop its forward march.

3. Replace any carpets and furniture that have ever been significantly damaged even if they look OK on the outside.

4. Carpet in the bathroom or basement? Don’t even think about it. And if you have it, get rid of it.

5. Provide adequate ventilation in hot areas. The kitchen and bath are two of the highest-risk rooms for mold. Install exhaust fans in both.

There are at least 5 more tips so call me for the long list 831-236-4513..

And for this week's top picks in the Monterey Peninsula real estate market:
0 SW CORNER OF MONTE VERDE AND 12Th STREET, Carmel MLS #: 81050665 $1,150,000 Beds: 2 Baths: 2 (2/0)

Here's the perfect Carmel getaway. All freshly painted and updated with 2 bedrooms, 2 baths and all new granite kitchen. Located on a corner lot in the Golden Rectangle. SqFt: 1,342 Lot Size: 4,000Sqft open this Sat 1-4 & Sun 2-4 Come see me

16091 BALFOUR LANE, Salinas Monterey Highway MLS #: 81051596 $549,000 Beds: 3 Baths: 3 (2/1)

Single story Serra Village home at a great price! This lovely home is filled with light and set on a large, corner lot. The 3 bedrooms are all good sized with updated bathrooms. The living room/dining room combo has a large & beautiful brick fireplace with French doors leading to a large backyard with patio & lush lawn. Lovely front yard & patio. Great home, Great price & truly turn key! SqFt: 1,667 Lot Size: 10,365 Sqft

1255 MESCAL STREET, Seaside MLS #: 81051436 $430,000 Beds: 3 Baths: 2 (2/0)

Short sale opportunity. Very nice single-story home in upper Seaside. Enjoy the city light and airport views from the back and rolling hills from the front. Sales price subject to lender approval. Home is in move-in condition. SqFt: 1,719 Lot Size: 7,800 Sqft

1925 BRADBURY STREET, North Salinas MLS #: 81050619: $225,000 Beds: 3 Baths: 3 (2/1)

Beautiful 3 bed 2 1/2 bath home in the Cottages at Miramonte. Very well cared for and maintained and in great condition. High Ceilings, fireplace, nice tile counters, and a large back patio. Short sale subject to lender approval. SqFt: 1,397 Lot Size: 2,580 Sqft

© Patty Ross, KRXA Radio Show #182 October 29, 2010

A Real Estate Story: A Brief History of the Home Mortgage Interest Deduction

How did the home interest deduction come about?

The First Income Tax - In 1894 Congress passed the first income tax, which was challenged and later struck down by the Supreme Court. So, government got into gear and in 1913 the Sixteenth Amendment was ratified granting Congress the power "to lay and collect taxes on incomes, from whatever source derived."

The Second Income Tax - Congress quickly imposed an income tax starting at 1% and rising to 7% on incomes over $500,000. This resulted with less than 1% of the US population paying any income taxes. This was the beginning of the modern graduated income tax.

Enter The Tax Deduction - The tax was offset with a deduction of any interest paid. Rental income was offset by the interest paid to finance the rental property and interest became a tax deduction.
Prior to WWI, home owners typically owned their homes outright. With the exception of financed or leased farm land, homes were purchased with cash. So at first, the mortgage interest deduction did not benefit homeownership.

Soon, local Thrift & Loans (Savings & Loans) were created to provide access to home financing.

Subsequently, programs through the FHA, VA, and later Fannie May and Freddie Mac facilitated broader homeownership. Finally, the creation of the conventional loan and the mortgage back security market brought financing to the masses. Along with homeownership came the mortgage interest deduction.

Of course home ownership today still makes sense in terms of deductions so let’s take a look at some good options here on the peninsula.'

25850 PASEO DE LOS ROBLES , Salinas Monterey Highway   MLS #: 81050150 $2,175,000 Beds: 4 Baths: 3.5
This gated, single story estate in Pattee Ranch has  1st class quality of craftsmanship & attention to detail. Follow the flowing floor plan to the enormous master suite w/ office, fireplace, his & hers walk-in closets, private patio & views of Castle Rock. The gourmet kitchen was completed in summer of 2010 w/granite, stainless steel & wine fridge.  Backyard boasts a stone fireplace, bocci court, pergola, putting green & incredible views!  SqFt: 4,708 Lot Size: 2.76 Acres  Check out photos on site www.pattyrosscarmel.com

109 17TH STREET, Pacific Grove   MLS #: 81050655: $899,000 Beds: 2 Baths: 2 (2/0)
Newer home, move-in ready & just steps to Lover's Point and Monterey Bay Coastal Trail in the heart of PG. Eric Miller designed, contemporary Mediterranean retreat w/ground level master suite w/private patio. Elevator takes you to the great room w/fireplace, kitchen w/ample granite countertops, Maple hardwood floors.  Cathedral ceiling & windows fill rooms with light. Peeks of Bay, 2 car garage.  SqFt: 1,593 Lot Size: 2,100 Sqft

129 WHITE OAKS LANE, Carmel Valley   MLS #: 81050838 $660,000 Beds: 2 Baths: 3 (2/1)
Completely remodeled condo in 1999. New roof 2 years old. This beautiful light & bright unit has the most desirable floor plan and view location. Spacious south facing deck surrounded by private landscaping.  SqFt: 2,090 Lot Size: 3,570 Sqft

779 ALICE STREET, Monterey   MLS #: 81051072 $549,000 Beds: 3 Baths: 2 (2/0)
Shining top-of-the-hill  New Monterey home; spacious reverse floor plan with vaulted ceilings and lots of light upstairs with an open/inviting family room-kitchen with balcony for the barbeque; master upstairs, two beds/bath and laundry on first floor; perfect spot to get to DLI on a quiet street;   size level lot with room for gardening/plants off of back deck; ready for new owners now!  SqFt: 1,438 Lot Size: 2,500 Sqft

© Patty Ross - KRXA Radio Show #181  October 22, 2010

4 Reasons Why Vacation Property Owners Should Put Their Rental Fears to Rest

Many vacation property owners would like to rent their home out when they’re not using it themselves. Problem is, they let their worry about the “what-ifs” override the benefits of collecting all that glorious rental income. Let’s take a look at some of the most common objections as to why vacation property owners don’t rent out their homes.

Objection #1: I am uncomfortable with strangers staying at my house.

Perhaps you’re worried about renters trashing your property or stealing from you. This almost never happens.  Even in the unlikely event that it did happen, that’s why you have insurance and ask for a security deposit upfront. And if you rent by owner, you really decrease the likelihood that something bad will happen.

Objection #2: I want flexibility for personal use.

You have complete control over when you rent your home out and when you don’t. You can rent it out during peak season and enjoy it yourself in the off-season. You can live in it during the winter and rent it out in the summer. You can reserve a few weeks out of the year for your own use and rent it out the rest of the time. You can even rent it out for two weeks without having to claim that income on your taxes (IRS Publication 527).  Except in Carmel of course where we have a 30 day minimum.

Objection #3: Financially, I don’t need to rent.
Think about it this way, if you have stocks and they are paying dividends, do you say no thanks to Microsoft? Of course not. So why would you leave real estate investment dividends on the table?

Objection #4: No one would want to rent my vacation home, anyway. 
If you just bought a far-from-luxurious suburban house for $150,000, you might assume that few people would want to rent it. Think again. Look on HomeAway.com and you’ll see listings for homes that range from rustic cabins to majestic castles.


Here are my latest picks for great buys:
3538 GREENFIELD PLACE, Carmel 93923 High Meadows $1,750,000 Beds: 4 Baths: 4 (3/1) 
Dramatic Ocean/white water views, Point Lobos, Monastery Bay, Santa Lucia Mountains, to Carmel Valley!! Surrounded by windows, the living/dining room and the master bedroom have "knockout" white water views(on a sunny day)!  Beautifully updated with superior materials. Wood floors throughout, skylights, loads of windows, guest quarters or 4th bedroom and bath, meandering paths, front patio.  SqFt: 2,700 Lot Size: 9,583 Sqft

19652 WOODCREST DRIVE, Salinas Monterey Highway MLS#81048705 $1,075,000 Beds: 5 Baths: 4 
Gorgeous, spacious home behind the gates of Prominence in Las Palmas II. 2 story & upgraded thru out. Gourmet chef's kitchen w/SS appliances, granite, breakfast bar & large pantry.  Lovely master suite w/balcony, fireplace, huge walk in closet & spa-like bath plus 4 large bedrooms. Downstairs bedroom & bathroom for guests.  Backyard has sprawling lawn & fireplace perfect for entertaining or staying in!  SqFt: 4,307 Lot Size: 49,222 Sqft

4970 PENINSULA POINT DRIVE, Seaside MLS #: 81048624: $550,000 Beds: 3 Baths: 2 (2/0) 
A beautifully upgraded & desirable Avocet Model with custom Travertine stone floors, tray ceiling in main bedroom with French doors to lovely paver-patio garden. Don't miss the gigantic walk-in closet in main bedroom. Spacious kitchen with Corian counter tops & molded sink. Stainless steel appliances too. Huge corner lot with "no-work" front & side yards maintained by HOA.  Across from greenbelt.  SqFt: 2,115 Lot Size: 6,037 Sqft

208 CARMEL AVENUE, South Salinas 93901 Maple Park MLS #: 81049400 $399,000 Beds: 3 Baths: 2 
Charming remodeled, spacious home in desirable Maple Park neighborhood. This beauty offers refinished hardwood floors, a quaint dining room with built-in china cabinets, sunny kitchen offering new appliances & granite counter tops, new bathrooms, 2 attics for storage and a well maintained yard with fruit trees. This home won't last long--it's a regular sale.  SqFt: 1,729 Lot Size: 5,500 Sqft

© Patty Ross, KRXA Radio Show #178  October 15, 2010

5 Reasons Why Now is a Good Time to Invest in the Housing Market

Foreclosures spiked in August 2010, with banks seizing 95,364 homes, according to RealtyTrac, a housing research firm. They were up 25% from August 2009 and at their highest level since the company started tracking this data in 2005.This is frightening news for homeowners, home sellers and home builders who may feel like they are barely hanging on, because it signifies continuing weakness in the housing market. But all of the news isn’t bad, since this may signify that the worst is over.

Here are some reasons why now is a good time to invest in the housing market:

The trend may reverse. Actual foreclosures lag defaults and foreclosure notices, and both of these latter categories are going down. Default notices peaked in April 2009 at 30% below their year-ago level.

The government programs have disappointed. Lots of foreclosures are coming now, because it took some time for folks trying to modify their mortgages under the government’s Making Home Affordable program to wash out. Some homeowners didn’t qualify, others did qualify but then fell behind on their modified mortgages. The Obama Administration mortgage relief program is now estimated to be able to help only 1/6th of the three million homeowners it had intended to aid.

Homeowners who are current may have options. Last week, the Obama Administration launched its latest effort, which would help homeowners who are underwater (they owe more than the house is worth) with their mortgages but are making timely payments by reducing the amount owed. That’s good for folks who want to refinance but haven’t been able to, but there are ramifications. One, it will lower their credit score. And any secondary debt, such as a home equity line of credit, will greatly complicate any modifications, or make them impossible.

It’s all regional, remember? Some housing markets are doing just fine. The biggest trouble spots in August probably sound familiar: Nevada, Florida, Arizona, and California. If you think you want to retire to one of those previously popular locales, it’s a good time to go shopping for your next home; you’ll get an excellent price.

Bargain hunters have plenty of time to catch the auctions. There’s going to be a lot of inventory for a long time. Foreclosed homes actually put up for auction reached 147,003 properties in August, and that number can be expected to go up before it goes down. There is already more than year’s supply of existing homes on the market now.

The properties we’re going to look at today are all bank owned and ready to go:

91 CORONA ROAD, Carmel Highlands MLS #: 81006931 $1,400,000 Beds: 3 Baths: 3 (3/0)
Park-like setting and early California Architecture. This Highlands home has it all. High end kitchen, lush mature gardens, plenty of privacy and recent complete remodel design, turn key potential. SqFt: 2,900 Lot Size: 40,510 Sqft Check out photos on site www.pattyrossacarmel.com

409 OSO D'ORO COURT, Salinas Monterey Highway MLS #: 80909546 Beds: 4 Baths: 3 (2/1) $1,009,000 Open floor plan & gorgeous views at this private home at the end of the cul-de-sac. Sunny & warm. Spacious patios take advantage of lovely golf & valley views. Gourmet kitchen (with upgraded appliances & materials) & family room combo make this home not only cozy for quiet nights in but also great for entertaining. Great deal! SqFt: 3,455 Lot Size: 37,055 Sqft Call me for private showing 831-236-4513

24438 SAN MATEO AVENUE, Carmel Active MLS #: 81042589 Beds: 3 Baths: 2 (2/0) $769,000
Hardwood floors in LR and sep DR. 2 fireplaces. 2nd story master suite w/ large tub, separate shower, closets. French doors to private deck. Downstairs 2 bed and bath, entry, charming study/den w/ FP, Saltillo tiles & doors that lead to patio and garden. 2 car garage. This property needs short sale approval. Large lot! SqFt: 2,050 Lot Size: 8,500 Sqft

3020 VERA LANE, Marina MLS #: 81040592 Beds: 3 Baths: 3 (2/1) $349,000
Newer home in good condition on a corner lot. Everyone can live in a single story. Nice size yard. SqFt: 2,035 Lot Size: 8,398 Sqft

(c) Patty Ross, KRXA Radio Show #179, October 2010

Popular online real estate appraisal sites are not as accurate as you may think

The do-it-yourself systems online make it very tempting for buyers to try to research homes without consulting a realtor first. This has always confused me as it’s the seller who pays the commission and with all the liability involved with a home purchase it’s rather penny wise and pound foolish to make that mistake.
Over the last five years, one of the newest developments in real estate is the ability for home buyers and sellers to search online for a home’s value. Popular Web sites such a Zillow.com, Cyberhomes.com, and Eppraisal.com offer free home estimates, but some consumers and real estate industry professionals say the values calculated often are inaccurate and misleading.

As a matter of fact to prove that point, there’s an estimate right now on Zillow for a lot in Carmel that shows a house on it and there is no house and never has been a house yet they are calling it a 3 bed 2 bath.. and estimating the value at $1.2, in reality it was just appraised by a licensed appraiser for $130,000.
The thing is, online home appraisal Web sites assign home values without knowing the features or upgrades of a home or the neighborhood in which it is located. Some Web sites offer a price range of $20,000-$40,000 more or less than the actual value of the home.

Since housing markets are local and not every home of a certain size is the same value, consumers can be misled into believing a home is worth more or less than the actual value. Working with a local realtor can help minimize inaccuracies in home values. Realtors can provide local housing market data and show homeowners and buyers recent sales of comparable homes in the area, to help determine an accurate list or offer price.

While some agents report that Web estimates can educate clients and provide a reasonable assessment of market conditions and the home-buying process, working with a local realtor is the best option.

Let’s take a look at some newly researched homes especially for you…

24936 VALLEY WAY, Carmel MLS#: 81020038 $1,899,000 Beds: 4 Baths: 3 (2/1) Bank owned a Saroyan home meticulously restored to perfection. Hand hewned pecan/walnut floor, custom sinks, top of the line appliances, three fireplaces situated on a totally fenced and gated lot. Bonus guest studio, electric gates, professionally landscaped, stone patios, outdoor entertainment area and more. SqFt: 2,600 Lot Size: 10,400 Sqft

25390 TIERRA GRANDE DRIVE, Carmel Valley MLS #: 81046903 $849,000 Beds: 3 Baths: 3 (2/1) Beautiful Carmel Valley Views from this very well maintained home one sunny lot. Vaulted, beamed ceiling in living room with fireplace, expanded dining room, family room, updated kitchen and large utility room. Enjoy all that Carmel Valley has to offer from the sunny, south facing deck, the large outdoor patio or the sunny screened-in porch. SqFt: 2,308 Lot Size: 38,588 Sqft

810 SPRUCE AVENUE, Pacific Grove MLS #: 81046315 $533,000 Beds: 3 Baths: 2 (2/0) Shows like a model home. Close to town on a corner lot w/fenced yard. Totally remodeled under City Senior Program. Cute as a doll house and ready to move in. if you are searching for the perfect starter home or vacation home, this is it. 2 of the Bedrooms & 1 Bath have separate entrance. SqFt: 915 Lot Size: 2,700 Sqft

0 4th STREET, Salinas Monterey Highway MLS #: 81045817 $425,000 Beds: 2 Baths: 1 (1/0) Cute as a button Spreckels home. Great curb appeal and great location. Very clean and cute inside & out, nice quiet street location. Remodeled in 2008, great working kitchen with all new appliances. Large backyard with tons of potential! New roof & hardwood floors in 2008 & new exterior paint in 2010. Move in ready! SqFt: 586 Lot Size: 6,127 Sqft

(c) Patty Ross, KRXA Radio Show #176 September 24, 2010

Signs point to a US real estate market stabilization

Positive news appears to be on the horizon...According to Bloomberg.com in a September 18th. 2010, "Home sales probably increased in August, a sign the U.S. real estate market is stabilizing after the expiration of a tax credit caused demand to plunge, economists said before reports this week." Read more...

Housing Remains Highly Affordable for Sixth Consecutive Quarter

Bolstered by favorable interest rates and low house prices, housing affordability remained near its highest level nationwide for the sixth consecutive month since the series was first compiled nearly two decades ago, according to the National Association of Home Builders.

The HOI (housing opportunity index) indicated that 72.3% of all new and existing homes sold in the second quarter of 2010 were affordable to families earning the national median income of $64,400.

Homeownership is within reach of more households than it has been for almost a generation, Interest rates continue to hover at historic low levels, the economy is beginning to rebound and with house prices starting to stabilize, conditions are beginning to draw home buyers back into the market, which is a positive step on the path to recovery.

Syracuse, N.Y., was the most affordable major housing market in the country.
Among smaller housing markets, the most affordable was Springfield, Ohio, where 96.6% of homes sold during the second quarter of 2010 were affordable to families earning a median-income of $56,800.

New York-White Plains-Wayne, N.Y.-N.J., continued to lead the nation as its least affordable major housing market during the second quarter of 2010.

You’ll be interested to know that the other major metro areas near the bottom of the affordability scale included San Francisco-San Mateo-Redwood City; Santa Ana-Anaheim-Irvine, Los Angeles-Long Beach-Glendale, Calif.; and Honolulu, all metro areas that have lingered among the bottom rankings for several quarters.

San Luis Obispo-Paso Robles, Calif., was the least affordable of the smaller metro housing markets in the country during the second quarter. Others near the bottom included our very own Santa Cruz-Watsonville, Calif.; Ocean City, N.J; Santa Barbara-Santa Maria-Goleta, Calif.; and Napa, Calif.

So let’s take a look at some affordable homes in this neck of the woods.. .

55 LA RANCHERIA ROAD, Carmel Valley MLS #: 81017814 $995,000 Beds: 4 Baths: 3 (2/1) 
Price reduction...MOTIVATED SELLER...Newly constructed home conveniently located off Los Laureles Grade. Enjoy easy access to both Monterey Peninsula or Carmel Valley. Shopping, golf and schools are all nearby. Spacious home with natural light and breathtaking views of the Valley and a peak of the ocean. SqFt: 3,358 Lot Size: 21,836 Sqft (almost 1/2 acre)

489 TOYON DRIVE, Monterey MLS #: 81028892 $649,000 Beds: 4 Baths: 3 (3/0) 
Very spacious Toyon Heights home with separate living unit and 3 car garage. Features include new windows, hardwood floors, paver driveway, updated kitchen & baths, bonus workshop and/or office space. Very well maintained. Downstairs guest unit. SqFt: 2,275 Lot Size: 16,800 Sqft
1339 DAVID AVENUE, Pacific Grove MLS# 81031499 $569,000: Beds: 3 Baths: 3 (2/1) 
Spacious, sunny & bright newer home overlooking PB forested area, large master suite, new carpeting and paint throughout. All new appliances, newly tiled bathrooms. Located at the end of a quiet CUL-DE-SAC, very private setting, low maintenance yard. Large garage + offstreet parking, patio area. All conveniently located close to shopping and schools. SqFt: 1,859 Lot Size: 6,500 Sqft
36 CASTRO ROAD, Monterey MLS #: 80922987 $2,995,000 Beds: 5 Baths: 6 (4/2) 
One of the most unique & beautiful homes on the Monterey Peninsula! This Spanish Colonial embraces The Old Del Monte Golf Course as it has for 60 years. Superior craftsmanship, terraced landscape, pool, Jacuzzi, wine cellar, office, radiant heat, BBQ entertaining area and 3-car garage barely describe this opportunity for resort living at its finest in Monterey. SqFt: 4,400 Lot Size: 39,208 Sqft (just short of 1 acre)
I’ll be there Sunday 2-4. Come by after the jazz festival, mention the show, and there’ll be a treat in store for you!

(c) Patty Ross, KRXA Radio Show #174 (September 17, 2010)

How to Budget for Home Maintenance

New homeowners oftentimes stretch themselves financially when having to pay the initial costs that come with purchasing a home. While it is important to focus on these preliminary expenses, homeowners must be aware of the financial requirements that come with maintaining the home.

Enthusiastic new home buyers hopefully have the funds to cover a home’s initial deposit, closing costs and any cosmetic touchups.

However, buyers frequently focus only on those first costs, overlooking the financial requirements of maintaining the home over time.

According to industry standards, homeowners should have 1% of the purchase price of their home in savings for improvements and surprise expenses. While this minimum will help ease through maintenance costs, a 2-3% cushion is even better.

A home inspection will help buyers better understand the condition of the house. They will estimate the age of major structural components and systems, providing the buyer an indication of each item’s anticipated lifespan. Understanding the current age of any particular system will allow buyers to calculate approximately when they’ll be due for major repairs or replacement.

LivingWithMyHome.com offers a list of approximate life expectancies of home components as well as cost estimates, useful as a tool for financial planning of homeownership.

Home buyers should plan for big-ticket costs across a five-year timeline, budgeting for major expenses, such as roof repairs, new air conditioners or plumbing upgrades. The best plan is to sock away those funds, rather than relying on borrowing from banks. As the credit crunch has deepened, banks have nearly stopped offering home equity lines of credit, so counting on a loan for needed repairs is a risky strategy.

Many people, particularly former renters, are accustomed to paying rent and likely utilities, phone, Internet service and cable.

As a homeowner, however, there will be other utility costs such as water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and possible homeowner’s association dues.

(c) Patty Ross, KRXA Radio Show #173 September 10, 2010

Three Lessons from Three Years of Recession

If there’s one thing that time consistently does, it’s move forward. So, as this Great Recession continues to wear us down, it may be time to cast our eyes towards the horizon as well as take stock in what we’ve learned so far, three years into this latest economic slump.
Here are three lessons we have learned within the last three years, with a glimpse to what the future holds for the new real estate.

1. A house is a home, not a piggy bank
The great agents always knew this, but it has become—and will continue to be—a truism that will linger with us for a long time to come: a house is a home, not a short term investment.

Too many Americans have lost too much to think of their homes as a siding-clad ATM. Instead, the best agents will be apt at matching houses with clients to find a perfect fit. A home, after all, is more than just crown moldings, copper wiring, and bay windows—it’s a sense of place, of community and of comfort. It matches who you are and fits seamlessly within your daily life.

2. The old way is not going to cut it I’m sorry to say but, like your car phone, your fax machine is obsolete. It’s amazing how quickly our world has changed within the last three years. Just think, back in 2007, Twitter was still in its infancy, Facebook was just a trend, and the first iPhone had just come out, with the app craze still months away.

As this Great Recession has taught us, however, we agents can no longer afford to simply leave a message after the beep.

3. It really is all about people. As with any great crisis, the Great Recession has reminded us of that one ideal that real estate was always about, but somehow got buried underneath the deluge of offers and listings: it all comes down to people.

Real estate is one of the last industries that cannot be automated. No matter how many websites, laptops, or smart phones are out there, no computer program can tell you that you can get the best lunch at the little cafe on Ocean or that the old man at the house next door will always be willing to lend you his ladder. A home, neighborhood and community can never be quantified into ones and zeros. It’s our job as agents to be the expert of your area, and to make sure that we’re putting the people we’re serving ahead of everything else.

It’s only natural to want to get rid of this Great Recession, to tear away from this downturn and go back to “normal.” But the new normal will not be like the old normal. Three years from now, we most likely will be recovered, but we’ll also be changed—for the better.

My latest picks:
131 LAS BRISAS DRIVE, Salinas Monterey Highway 93940 MLS #: 81043273 DOM: 1 Beds: 4 Baths: 3.5
$1,400,000
Exceptional Golf Villa with rare corner lot within the gated and private Pasadera! Wonderful opportunity to own the perfect Golf Villa! Featuring a Gourmet Kitchen and luxury living with beautiful details and amenities along with many upgrades. Separate Guest Casita and outdoor entertaining patio with fireplace and views. SqFt: 3,305 Lot Size: 7,700 Sqft
24438 SAN MATEO AVENUE, Carmel 93923 MLS #: 81042589 Beds: 3 Baths: 2 (2/0)
$799,000
Would-be treasure in Carmel Woods. Hardwood floors in LR and separate dining room. 2 fireplaces. 2nd story master suite w/ large tub, separate shower. French doors to private deck. Downstairs 2 bed and bath, entry, charming study/den w/ Fireplace, Saltillo tiles & doors that lead to patio and yard w/ garden possibilities. 2 car garage. A great project-restore this special house to the beauty it once was. SqFt: 2,050 Lot Size: 8,500 Sqft
28082 BARN WAY, Carmel Valley 93923 MLS #: 81040897 Beds: 2 Baths: 3.5
$750,000
Gorgeous remodel at the Ranch in sunny Carmel Valley. End unit townhome with mountain views, new kitchen and baths. Tile floors throughout, gourmet kitchen with all new appliances, large sunny deck, two master suites, one with an adjoining study that could be made into a third bedroom. SqFt: 2,412 Lot Size: 2,792 Sqft
2442 NORTH MAIN STREET,#F, North Salinas 93906 MLS #: 81042536 DOM: 3 Beds: 2 Baths: 2 (2/0)
$99,000
Attractive condo overlooking the adult pool in gated complex with many upgrades including newer kitchen appliances, newer tile and laminate floors, ceiling fan in family room, newer paint, full size indoor laundry room, newer light fixtures and newer replaced hardware in bathrooms and kitchen. SqFt: 1,150
(C) Patty Ross KRXA Radio Show September 3, 2010

Patty Responds to A Caller About Her Commercial

In response to a caller:

I’ve been doing this show now for about 5 years (amazing). In that time I’ve received a few calls, mostly about the properties I highlight, some just wanting to chat about real estate, some who have problems or issues they want answers to.

This week I received my first “hate” call.

This guy was clearly angry and although he didn’t leave his name I did capture his number on my voicemail and did attempt to call him back, hoping for an opportunity talk and get at the root of his apparent anger.

Haven’t heard from him yet.

He was absolutely livid about my commercial. Said all kinds of very uncomplimentary things the least of which was that I was stupid and the reason for our current down real estate market. Of course this points to the fact that he doesn’t listen to this show or he would realize that not only is this not a ‘down’ market but a very opportunistic market for people who never dreamed they could own a home here on the Peninsula. My recent buyers include teachers, nurses, policemen and women, a fireman and single mothers.

But that aside, he was particularly angry about the part in the commercial that refers to wealth building through real estate. He indicated that I suggested that people cash out and invest all their money in a home.

I have listened to the commercial very carefully and never at any point do I suggest that, but simply that historically real estate investments have been the #1 reason for wealth in this country. With the decrease in prices now, it continues to be a good time to invest, providing you have excellent credit, a good job and a substantial down payment.

Yes, we (and I mean primarily the lending industry) were largely responsible for eliminating that criteria for too many years and that resulted in a long overdue crash and I’m sure that a few realtors were in cahoots with some of those lenders and made lots of money at the expense of their buyers but I was not one of them. As a matter of fact, I got in to the business just as things started to spiral downward (figures).

Anyway, I’m hoping that Mr. Caller hears this show and now has a clearer picture of my commercial intent. And if he is listening, I would like to invite him to lunch to continue to discuss. OK I feel much better now.

This week's top picks:
85 MOUNT DEVON ROAD, Carmel Highlands 93923   Beds: 3 Baths: 4 (3/1)
 $3,495,000 
Property is located at what is known as "The top of the world". Very private setting, gated and dramatic ocean views!! All of Pt. Lobos, PB and Carmel. Turn key setting. SqFt: 3,376 Lot Size: 87,120 Sqft

25565 PASEO DE CUMBRE , Salinas Monterey Highway 93940  Beds: 5 Baths: 5 (4/1) 
$1,475,000 
Welcome home to expansive panoramic bay views from Pacific Grove to Santa Cruz from all the main rooms of this gorgeous estate located in gated Bay Ridge. Enjoy the warm sunbelt location from the sparkling pool, Jacuzzi, fire pit & built in BBQ. Built with the finest materials & craftsmanship on 1.5 acres, this estate is what dreams are made of! SqFt: 4,400 Lot Size: 65,775 Sqft

820 CASANOVA AVENUE,#53, Monterey 93940   Beds: 2 List Price: Baths: 1 (1/0) 
$269,000 
Condo with upgrades - granite counters, stainless steel appliances, washer & dryer, new tile and carpet. Located near shopping, restaurants and access to Hwy 1. This charming ground floor condo is priced right and ready for you to move in. SqFt: 820

1835 LONDON WAY, North Salinas 93906   Beds: 3 Baths: 2 (2/0) 
$260,000 
House sits on a large lot. Single level. Many upgrades. Walking distance to schools. Must see to appreciate. SqFt: 1,748 Lot Size: 6,113 Sqft

(c) Patty Ross KRXA Radio Show_171 August 27, 2010

The Top 5 Most Common Reverse Mortgage Myths

Because so many Americans over the age of 62 are facing significant financial stress due to dropping retirement and savings account balances, as well as higher healthcare costs, many groups are targeting seniors under the guise of helping them. HECM (home equity conversion mortgage) reverse mortgages are Federal Housing Administration-insured products and are heavily scrutinized by regulators and legislators looking to protect seniors’ best interests.

As a result, more than 600,000 American seniors have obtained reverse mortgages that have enriched their lives by allowing them to stay in their homes and pay off their bills.

Myth: If I take out a reverse mortgage the lender will own my home.
Fact: False. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the house is maintained and property taxes and homeowners insurance are paid, the loan cannot be called due.

Myth: My children will be responsible for the repayment of the loan.
Fact: False. Reverse mortgages are non-recourse loans. That means, if the property is sold to pay-off the loan when the homeowner passes away or decides to leave the home for other reasons, there will be no mortgage debt for the family and heirs to repay. The maximum amount owed is the current market value of the house. If the homeowner’s heirs want to keep the home, they would pay the balance in-full to the reverse mortgage lender.

Myth: I can’t get a reverse mortgage if I have an existing mortgage.
Fact: False. With enough equity, you may be able to pay off your existing mortgage or other debt with the reverse mortgage. The reverse mortgage must be in a first lien position, so any existing mortgage must be paid off. Seniors who take out reverse mortgages are free to do anything they want with their reverse mortgage proceeds. Paying off an existing mortgage is the number one reason most seniors take out a reverse mortgage.

Myth: Only low-income seniors get reverse mortgages.
Fact: False. Although some seniors may have a greater need than others for the monthly proceeds or lump sum funds reverse mortgages offer, most simply prefer to be free of monthly mortgage payments. Without monthly mortgage payments, many homeowners find they can maintain their existing quality of life and build their savings to help with future expenses. A growing number of people who have no immediate need are taking out these loans so that they have a financial cushion for future expenses.

Myth: If I outlive my life expectancy, the lender will evict me.
Fact: False. Reverse mortgage lenders put no time limit on how long seniors can stay in their homes. Since homeowners still own the property, lenders cannot evict them, provided they follow the program guidelines.

Patty's Top Picks:
51410 PARTINGTON RIDGE ROAD, Big Sur MLS: 81039421 DOM: 7 Beds:3 Baths:3 $2,950,000
A dream home on the Big Sur coast. Huge ocean & south coast views. New kitchen appliances, Miele dishwasher, Jenn Air range, 2 fireplaces, outdoor hot tub. Mature redwoods, oaks & madrones. Plans for pool & guest house addition. SqFt: 1,650 Lot Size: 5-7 acres

301 PASADERA COURT, Salinas Monterey Highway MLS #: 81040083 $2,948,000 DOM: 4 Beds: 4 Baths: 5 (4/1)
Stunning single story custom home at Pasadera Country Club. Located on the 2nd green, this home boasts 4 large bedrooms all with walk in closets and en-suite bathrooms, a library w/ beautiful built-ins, a gourmet kitchen that will leave you breathless and views that are beyond compare. Every detail has been thought of and every amenity included. SqFt: 4,484 Lot Size: 43,560

9 ANTELOPE LANE, Monterey MLS #: 81039457
$945,000 DOM: 7: Beds: 4 Baths: 3 (3/0)
Truly beautiful home with hardwood floors, updated kitchen with granite, stainless, maple cabinets. Separate family room with fireplace. Very large flat rear yard with patio, deck, lots of grass and it backs onto greenbelt. Complete window replacement and new roof within the last several years. Big master with updated bath. SqFt: 2,461 Lot Size: 9,147

3020 VERA LANE, Marina/ MLS #: 81040592
$349,000 DOM: 0 Beds: 3 Baths: 3 (2/1)
Newer home in good condition on a corner lot. Nice size yard. SqFt: 2,035 Lot Size: 8,398 Sqft

(c) KRXA Radio Show, Patty Ross, 8-20-10
831-236-4513
pattyross@kw.com
www.pattyrosscarmel.com

6 Reasons to Buy a Vacation Home Now

As the real estate market continues its bumpy road toward recovery, the vacation home market is heating up, causing homeowners around the country to seriously consider buying the vacation home they’ve been eyeing.

Whether you’re looking for a charming beach bungalow or a high rise condo with spectacular views, a host of market conditions have come together to make buying a vacation home a smart move. The drop in home prices, incredibly low interest rates and the increase in demand for vacation rentals make it an optimal time to explore a second home purchase.

1. Prices down 20-50%. Whether you’re looking for a weekender in Seaside or a second home in Carmel or Pebble Beach, now is the time to take advantage of the reduced prices.

2. Interest rates. Rates, of course, are at historic lows. Lock in a good rate, buy a vacation home in a desirable location, and watch your asset appreciate over the long-term.

3. A relatively safe investment. Real estate has proven itself to be a safe place to park your money for the long-term. (Long-term is key). Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold.

4. Make a profit. Or, better yet, make your vacation home pay for itself. Only planning on using your vacation home a few months out of the year? Rent it out short-term to vacationers looking for a great place to stay. Many homeowners make a killing listing their homes on VRBO.com. (Vacation Rental By Owner). When your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Take this week for example with The Concours De Elegance in town.

5. Vacation rental demand is heating up. Overall, vacation rentals are less expensive than hotel rooms, especially for longer visits and for families. Savvy travelers know this. In addition, the weaker dollar makes U.S. destinations attractive to travelers from countries with stronger currencies.

6. The pressure of bidding wars is off. Sure, you may not get bargain basement prices on a beachfront cottage—but you might if you’re willing to buy a few blocks away. Houses aren’t exactly flying off the shelves these days, but buyers now have less pressure to make a hasty decision. Buyers looking for deals on vacation homes can really do their homework.

And now...here are some of the area's best buys:


3538 GREENFIELD PLACE, Carmel 93923 MLS #: 81035536 Beds: 4 Baths: 4
$1,750,000
Dramatic Ocean/white water views, Point Lobos, Monastery Bay, Santa Lucia Mts, to Carmel Valley. Surrounded by windows, the living/dining room and the master bedroom have "knockout" white water views. Beautifully updated with superior materials. Wood floors throughout, skylights, loads of windows, guest quarters or 4th bedroom and bath, meandering paths. 2 car garage SqFt: 2,700 Lot: 9,583 Sqft

25850 NORTH MESA DRIVE, Carmel 93923 MLS #: 81021334 4 Baths: 5 (4/1)
$1,650,000
If you are looking for unique, if you are looking for large, if you are looking for a great location, a great school district, a master bedroom to "live in", then look no further. The house is surrounded by lush landscaping, Satillo tile floors, separate downstairs guest quarters, peeks of ocean. 2 car garage. Definitely not a drive by. Come and experience. SqFt: 4,160 Lot: almost an acre

15 OCEAN PINES LANE, Pebble Beach 93953 MLS #: 81036881 Beds: 2 Baths,2
$500,000
Views abound from this cute condo in Ocean Pines. New carpet, paint, wet bar. Patio off living room and master bed with crashing waves below. SqFt: 1,272

702 REDWOOD LANE, Pacific Grove 93950 MLS #: 81036484 Beds: 2 Baths: 2
$459,500
Fresh, lovely and open, yet private. New carpet, vinyl, and just-painted walls. It has a very private patio and there is a large 2 car garage. All you need to do is just move in and enjoy this conveniently located home in its beautiful and tranquil oak and pine studded setting. SqFt: 1,156 Lot: 1,582 Sqft

831-236-4513
pattyross@kw.com
www.pattyrosscarmel.com

(C) Patty Ross - KRXA Radio Show August 13,2010

4 Important Tips to Keep in Mind when Seeking Senior Housing

People are living longer today due to dramatic advances in medical science and health lifestyles. Currently, 13% of the U.S. population is 65 and older, up from 4% in 1900.

As Baby Boomers turn 65 in high and higher annual numbers, it is estimated that one in five Americans will be over age 65 and about 5% over 85.

The senior housing industry has been growing dramatically over the last 15 years as many adult children, especially daughters who have usually been the main caregiver for aging parents, are now in the workforce and unable to provide the attention to their parents’ needs, whether physical or social.

There are a number of things to be considered when choosing lifestyle alternatives:

-Location. Keeping your parents close to home should not be the number one consideration. Although it is important that the community be convenient for family and friends to visit, being close to amenities they need and trust will make their senior living experience rewarding and more fulfilling.

-Type of community. Visiting to make sure the current residents have similar interests, backgrounds and values will allow for a more enriching life in the golden years. Many communities invite prospective residents to tour their community and enjoy lunch with the community which is a wonderful way to know if the culture is a fit. Some even offer a weekend stay to experience more fully what the community has to offer.

-Staff. Is the staff appropriately dressed, personable and outgoing? Do the staff members treat each other in a professional manner? Does the staff call residents by name and interact warmly? The answers to these questions will determine quite a bit toward whether the community is right for your loved one.

-Medical needs. Does the community have on site medical supervision? If not, is there an agency that is associated with the community that can help when needed?

Let’s take a look at some various local properties that may work for retirees who can still fend for themselves.
12 MAL PASO ROAD, Carmel Highlands 93923 MLS #: 81037205 DOM: 6 Beds: 3 Baths: 4 (4/0) $2,495,000
Highlands at its best! Perfectly functional home w/beautiful form. Nestled onto site w/mesmerizing ocean/canyon views from every room. Exquisitely landscaped gardens, multi-level decks complete outdoor living areas. Separate dining/family rooms, spacious LR w/lots of windows, French doors & wood-burning stove. Kitchen is warm, inviting & fully-equipped. 2 garages hold 6+ cars. 3098 sf 49,450 lot

10600 SADDLE ROAD, Salinas Monterey Highway 93940 MLS #: 81038104 DOM: 2 Beds: 3 Baths: 3 $1,195,000
Remarkable unobstructed bay and valley views. A beautiful, open, rather traditional interior all wrapped up in a geodesic dome exterior. Very high ceilings, French doors leading to a wrap-around deck, hardwood floors throughout the main level and a really great contemporary kitchen with all the upgrades you will want! 3rd bedroom on lower level is perfect for separate guest quarters. 2995 sf 87,120 lot

1169 PROSPECT STREET, Seaside 93955 MLS #: 81038153 DOM: 0 Beds: 2: Baths: 1 (1/0) $299,000
Amazing house. Fully landscaped with decking, natural vegetation. End of cul de sac. 1028 sf 11,000 lot check out photos on my site www.pattyrosscarmel.com

86 DEL MESA CARMEL, Carmel Valley 93923 MLS #: 81033965 DOM: 27 1 Bed: 1 Bath
$390,000
55+ development. Light & bright, spacious, condo. Easy walk to Club House with no steps. Great views of canyon & forest from sunny deck. Extensive remodel--kitchen with custom cabinets, granite, stainless steel appliances, vanity, bathroom, wall-to-wall/bamboo/tile floors and inside washer/dryer. Retirement living at its finest! 953 sf

236-4513 | pattyross@kw.com | www.pattyrosscarmel.com
(c) Patty Ross - KRXA Radio show, Friday, August 6, 2010

The Green Home Market – “Cash For Caulkers”

Once home construction rebounds you will find a significant increase in certified green homes or those with green features. This increase will come as more local governments incentivize green homes or, in some cases, mandate them.

For example, the California Building Standards Commission unanimously adopted the first mandatory Green Building Standards Code (CALGreen), requiring that all new buildings in the state be more energy efficient and environmentally responsible. The new code will take effect January 1, 2011 and includes all new residential structures.

In terms of the existing home market, there is proposed federal legislation called HOME STAR, also known as ‘Cash for Caulkers’ that will incentivize homeowners to make their homes more efficient and durable.

This 6 billion dollar program would stimulate construction jobs and provide direct rebates to homeowners who invest in qualifying home energy improvements. Rebate amounts can be deducted from overall job costs and paid directly to the contractor or product retailer after the retrofit work has been completed (for more information visit www.efficiencyfirst.org).

If this legislation passes, homeowners are certain to take advantage and when they go to sell they need to call me!

This week's picks:

22400 MONTERA COURT, Salinas Monterey Highway 93908
$800,000 4 Beds 2 Baths DOM 0 MLS #:81037243
Toro Park house located in a cul-de-sac next to park. Single story home with upgraded kitchen. Pretty flower gardens in front yard and nice lawn in back yard with fruit trees galore. Located in the sunbelt of the Monterey Peninsula with great hiking and biking close by. 1928 sf 15,127 lot

5062 SUNSET VISTA DR, Seaside/Former Fort Ord/Sand City 93955 (Seaside/Former Fort Ord/Sand City)
$715,888 Beds: 5 beds Baths: 2|1 baths DOM: 221 MLS: 80956406
Wonderful Sanderling model sitting high on the hill in Seaside Highlands, Granite counter tops, hardwood floors, tile floors, and some carpeting, some views of ocean, great opportunity to own one of the largest homes in Seaside Highlands. Front yard maintained by Home owners association. 3639 sf 8616 lot Short Sale

4530 PENINSULA POINT DR, Seaside/Former Fort Ord/Sand City 93955 (Seaside/Former Fort Ord/Sand City)
$649,888 Beds: 3 beds Baths: 2|1 baths DOM: 88 MLS: 81019577
Upgraded Sand Dollar model with granite countertops, stainless steel appliances, mini-bar area between living room/kitchen, kitchen dining bar, dining nook + formal dining area, fireplace in family room, low maintenance back yard, coved ceiling in master bedroom, deck off master bedroom w/french door access, laundry inside, dual pane windows, near greenbelt, tot play area, close to beach/golf. 2952 sf 4595 lot Short Sale

4792 PARADISE COVE CT, Seaside/Former Fort Ord/Sand City 93955 (Seaside/Former Fort Ord/Sand City)
$611,888 Beds: 3 beds Baths: 2|1 baths DOM: 46 MLS: 81026940
Bay Views from Master Bedroom, wonderful upgraded Anemone Model with coved ceiling in Master Bedroom, light & bright interior, custom fireplace mantel, landscaped backyard with lots of usable space for your enjoyment, convenient location to golf, beaches and all that Monterey Bay has to offer, perfect opportunity for investor or new buyer. 2337 sf 5793 lot

For more information contact Patty Ross
236-4513 | pattyross@kw.com | www.pattyrosscarmel.com
(c)Copyright Patty Ross, KRXA Radio Show 167, July 30th, 2010

5 Tips to Save Money for First-Time Home Buyers

Those who missed taking advantage of the first-time buyer tax credit but who are still planning the purchase of their first home, continue to have a wealth of opportunities in today’s marketplace. A few smart steps can save first-time buyers thousands of dollars. Here’s a look at some of the ways how:

1. Don’t buy if you don’t plan to stay.

If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market. When prices are falling, it’s an even worse proposition.

2. Start by shoring up your credit
.
Since you probably will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Choose carefully between points and rate
.
When picking a mortgage, you usually have the option of paying additional points- a portion of the interest that you pay at closing- in exchange for a lower interest rate. If you stay in the house for a long time- say three to five years or more- it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

4. Hire a home inspector
.
A home inspector can let you know if you’re about to buy a lemon of a house or warn you about potential problems. At best, you can move into the house confident that it’s in good shape; at worst, the inspector’s report can let you back out of the deal if the house has major, unexpected problems. Most typically, the home inspection can allow you to negotiate the home price to account for necessary repairs.

5. Get professional help
.
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

If you have questions about real estate, call me for the answer, or visit my website to see just a few of the great deals out there right now!

831-236-4513

pattyross@kw.com

www.pattyrosscarmel.com

Copyright KRXA Radio Show, Patty Ross, July 16, 2010

Good News: Stated Income Loans to Return in 2010

There's good news in the lending arena. House and Senate Leaders have introduced an amendment to the newly passed 
Financial Reform Legislation to bring back stated income loans for residential lending with the following conditions:

1) The loans will only be used for foreclosed properties
2) They will first be offered to liquidate Fannie Mae and Freddie Mac inventory 

3) They will be available with 30% down payment

4) The borrower must have a minimum credit score of 740

5) The property must be an owner occupied residence 

6) The borrower must be self-employed and in their field for five years 

7) Personal bank statements for the most recent 6 months will be used to cash flow income

So it seems the data shows that when it comes to stated income loans, the baby was thrown out with the bathwater in 2008. Many of the stated income loans were terribly designed loan programs during the Sub-Prime heyday but didn't start that way. After looking at the historical data they found that when the down payments were kept high as in the early years of these stated income programs, along with higher credit scores, stated income loans were very well performing loans.

In the early 2000's these well performing stated income programs were undermined when many Sub-prime lenders entered the market. These Sub-Prime mortgage companies lowered the down payment requirements to zero and lowered the credit score requirement into the mid to high 500's. At this point, many mortgage analysts knew it was only a matter of time before the market would implode due to its own greed.

Once the implosion occurred, the bank regulators, Congress and various state entities rushed in with draconian efforts to do away with all stated income programs -- good or bad. And with a series of unwise measures, 35% of the home buyers in the nation -- self-employed borrowers, were pushed or locked out of the housing market at a time when the market needed them most.

So there you have it, another indication that the real estate market is slowly shifting back to “normal."

This week's Best Picks by Patty:

26225 ATHERTON PL, Carmel 93923 (Carmel)
$1,300,000 Beds: 4 beds Baths: 4|0 baths DOM: 7   MLS: 81029734
Large Lot, almost one acre, distant pt lobos views, located on great street private and Cul-du-sac, lots of water credits too, 2 wood burning fireplaces, Almost 2700 sq ft of living spaceplus bonus private rental unit, great investment potential in more ways than one. 3010 sf .92 acre

1 DEER STALKER PH, Monterey 93940 (Monterey)
$935,000 Beds: 5 beds Baths: 3|0 baths DOM: 4   MLS: 81030469
Beautiful home in Deer Flats Park, a solarium, full attic with pull-down stairs as bonus area plus full attic storage over 3-car garage. 2 fireplaces, large wet bar, separate family room, dining room, and breakfast room. Downstairs 5th bedroom or office/den. Hardwood floors in entry, kitchen, breakfast area. 3150sf 9710 lot

21 CUESTA VISTA DR, Monterey 93940 (Monterey)
$950,000 Beds: 3 beds Baths: 1|0 baths DOM: 6   MLS: 81029954
The view is "drop-dead" gorgeous--the whole curvature of the bay & downtown Monterey. The house could use some updating. Very private setting. 1244 sf 11,800 lot

307 DEL ROBLES AV, Monterey 93940 (Monterey)
$550,000 Beds: 3 beds Baths: 2|0 baths DOM: 5   MLS: 81030226
 Newly redone home near Del Monte Beach & NPS. Carmel stone on exterior, updated kitchen with granite counters, distressed hardwood floors throughout. Travertine stone in bathrooms. Low maintenance yard. Conveniently located to beach, rec trails and shopping. 1320 sf 4200 lot short sale

Patty Ross
236-4513

pattyross@kw.com

www.pattyrosscarmel.com
KRXA Radio Show June 25, 2010

The Not-So-Clear Crystal Ball...When will the Maket "Come Back?"

Probably the most asked question I get is, "When will the market “come back”?"

First of all, I’m not sure we want it to come back as it was, as it was so fraught with fraud and problems which led to the crash. And I’ve mentioned many times before that real estate is a local issue and needs to be evaluated based on local stats and considerations. We’re already seeing prices ease back up in Seaside, Salinas Monterey Highway, and Monterey.

But to give you an idea of what the experts are saying. According to the consensus of 92 economists and other housing prognosticators recently surveyed by MacroMarkets LLC, home prices will rise about 12% in the five years ending December 31, 2014. At the end of 2009 the index was down nearly 28% from its peak.

The predictions among the 92 participants swung the full spectrum of economic opinion. Joseph LaVorgan of Deutsche Bank projects home prices rising 37% by the end of 2014 while others including Anthony Sanders of George Mason University and Gary Shilling of A. Gary Shilling & Co., see declines of nearly 18%. That is a 55 point spread!

Forces that will influence the direction of housing prices include these economic considerations:

- The post-tax credit environment

- Working through the nearly 4.5 million distressed residences

- The Fed's budget deficit going forward.
The latter has international implications as the European Union rustles with the credit woes of Greece, Portugal, Ireland and others.
Who would have figured that Greece could affect the value of US homes? But, in this global economic environment you know that the US is being called upon to help bail out governments that haven’t disciplined their own economies. The more the US Treasury is called on, the more taxing it will be on the US economy and its taxpayers. The greater the economic drag, the greater its impact on housing.


My Picks for the Week...

23800 FAIRFIELD PL, Carmel 93923 (Carmel)
$1,325,000 Beds: 4 beds Baths: 2|1 baths DOM: 6   MLS: 81028105 
Views abound in this home above Monterey Bay. Peaks to the south and views of Monterey, Seaside, and across to Santa Cruz on clear days. Spacious master, separate living, family and dining. 3 separate decks all at the end of a quiet cul de sac. 3195 sf 1 acre check out photos on www.pattyrosscarmel.com

489 TOYON DR, Monterey 93940 (Monterey)
$689,000 Beds: 4 beds Baths: 3|0 baths DOM: 3   MLS: 81028892
 Very spacious Toyon Heights home with separate living unit and 3 car garage. Features include new windows, hardwood floors, paver driveway, updated kitchen & baths, bonus workshop and/or office space. Very well maintained. 2275 sf 16,800 lot call for private showing 236-4513

38350 LAUREL SPRINGS RD, Carmel Valley 93924 (Carmel Valley)
$645,000 Beds: 1 beds Baths: 1|0 baths DOM: 12   MLS: 81027147
 The Magic Kingdom - 40 acres of complete privacy, mature oaks & madrones, open meadows. Wonderful mountain views, well-built cabin in like-new condition. Energy self-sufficient property. Gently rolling meadow - ideal for construction of new home, horse barn, and paddocks. Locked security gate, video camera system on property. Located about 50 minutes' drive from Carmel. Live close to nature. 840 sf

1077 AMADOR AV, Seaside/Former Fort Ord/Sand City 93955 (Seaside/Former Fort Ord/Sand City)
$198,888 Beds: 2 beds Baths: 1|0 baths DOM: 4   MLS: 81028692
864 sf 5000 lot short sale

Source: Copyright Patty Ross, KRXA Radio Show 163 June 18, 2010

Celebrate National Homeownership Month -- Get the Information You Need to Become a Well-Informed HomeBuyer

June is National Homeownership Month and consumers need to get informed as they prepare to buy a home. Today, there are a growing number of obstacles for home buyers, including a higher credit score standard and more restrictions on credit. Despite current challenges in the secondary mortgage market, home loans are available to credit-worthy buyers and banks stand ready to help prospective home buyers.
It’s crucial that you have a thorough understanding of the changing market when shopping for a mortgage. Here are seven tips to help you do exactly that:
1. Learn about first-time home buyer programs. Consider taking a first-time home buyers course or visit with your local banker to find out about programs available to you.

2. Get pre-approved. Know the difference between “pre-qualified” and “pre-approved.” Getting pre-qualified is a casual process where the lender tells you how much you should be able to borrow based on how much money you make, how much debt you have and how much you have to put down on a house. Pre-approval occurs only after you actually apply for the loan and the lender gives you in writing the amount you can borrow. A buyer who is pre-approved is more attractive to sellers and their agents than one who is only pre-qualified. Once you find a mortgage that is best for you, get pre-approved before you start making offers on a home.

3. Be honest with the lender and yourself. You don’t want to borrow more than you can afford. Your bank can provide a calculator to determine if you can afford to borrow and if so, how much.

4. Look at the basics of the loan. Don’t get distracted by all the bells and whistles. Choose the type of loan that makes the most sense for you.

5. Know your credit situation. Obtain a copy of your credit report and FICO score or VantageScore at least six months before you apply for a mortgage. This should give you enough time to challenge and remove any errors on your credit report and take care of anything that’s hurting your credit score. To obtain a free copy of your credit report, visit www.annualcreditreport.com.

6. Consider all the costs. A lender will review costs like fees, closing costs, points, homeowner insurance, and taxes. But consumers should also consider repairs and maintenance costs. As a homeowner, you are responsible for those additional costs - there won’t be a landlord to call.

7. Organize your finances before you go to the bank. While each bank may require different documentation, at a minimum you will need:
- Pay stubs.
- Tax returns.
- Financial statements (one that is less than 60 days old).
- Copies of additional monthly payments such as car loans, credit cards, student loans, etc.
- Any additional information (such as proof of additional income) that you think will help your banker to positively evaluate your credit request.

Home ownership is still an integral part of the American Dream...get the information you need to unlock the door to your next home!

High-End Home Sellers Get Real

Billionaire tax cheat Leona Helmsley loved a good bargain. So, were she still around, the late hotelier might appreciate recent happenings at her Greenwich, Conn. estate.

The 14-bedroom, 13 1/2-bathroom mansion, which came on the market priced at $125 million two years ago, has been reduced to $60 million. That’s a 52% price chop for the 21,897-square-foot manor on 40 rolling acres.

The Southern California real estate landscape, likewise, has been littered with its share of high-profile price drops. Nicolas Cage’s 11,817-square-foot English Tudor in Bel-Air has been reduced 50% to $17.5 million from $35 million when it first hit the market in 2006. The home of Suzanne Somers and Alan Hamel, started at $35 million more than two years ago and was eventually slashed to a reported $12.9 million—a 63% reduction.

When the housing bubble popped, the most dramatic declines hit the mid-priced and low-end markets, where home sellers had to compete with cheap foreclosures. Now, even the wealthy are facing the new reality as some luxury homes’ prices have dropped—and dropped again—over the last few years and agents are begging sellers to be realistic in setting an asking price.

The high end market here on the peninsula has seen larger than 50% drops in prices over the past few years so now generally sellers are getting the big picture and pricing their homes closer to value which is lessening days on market and even causing some bidding wars in Carmel by the Sea.
KRXA Radio Show #160 April 30, 2010

Relief arrives for some distressed homeowners in California with the lifting of state income tax on debt forgiveness

Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification.  Enacted into law last week, Senate Bill 401 generally aligns California's tax treatment of mortgage debt relief income with federal law.  For debt forgiven on a loan secured by a "qualified principal residence," borrowers will now be exempt from both federal and state income tax consequences.  The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.

"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence.  It includes both first and second trust deeds.  It also includes a refinance loan to the extent the funds were used to pay off a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012.  Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.
 
Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions.  Most notably, taxpayers who are bankrupt are exempt from debt relief income tax.  Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.
Of course, always talk to your tax advisor.

(KRXA Radio Show #159 April 23, 2009)

Carbon Monoxide poisoning and your home - What you need to know

This is a topic I really never gave too much thought to until I had a houseguest last week who told me she almost died from it.

Carbon monoxide (CO) is an odorless, colorless, poisonous gas. You cannot see, taste or smell carbon monoxide which makes it almost impossible to detect. For this reason every home should have a carbon monoxide detector. When inhaled, carbon monoxide enters the lungs and bloodstream where it eventually replaces your body's oxygen, resulting in suffocation. Exposure to high levels of carbon monoxide can cause death within minutes. Symptoms of carbon monoxide poisoning include headache, dizziness, lightheadedness, nausea, weakness and shortness of breath.

Should your carbon monoxide detector go off, or you suspect the presence of carbon monoxide, get outside into fresh air immediately. If you cannot get outside be sure to open as many doors and windows as possible. Then go to the hospital emergency room or call 911 for medical attention. Carbon monoxide can be produced by both wood and gas fireplaces and can be caused by blocked chimneys, leaking chimney flues, cracked heat exchangers or improper venting.

On average, about 170 people in the United States die every year from CO produced by non-automotive consumer products. These products include malfunctioning fuel-burning appliances such as furnaces, ranges, water heaters and room heaters; engine-powered equipment such as portable generators; fireplaces; and charcoal that is burned in homes and other enclosed areas.

In 2005 alone, CPSC staff is aware of at least 94 generator-related CO poisoning deaths. Forty-seven of these deaths were known to have occurred during power outages due to severe weather, including Hurricane Katrina. Still others die from CO produced by non-consumer products, such as cars left running in attached garages.

The Centers for Disease Control and Prevention estimates that several thousand people go to hospital emergency rooms every year to be treated for CO poisoning. With power outages being so common here on the Monterey Peninsula, this should be a concern for all. PGE will come out for free and check your house so give them a call.

(KRXA 540AM Radio Show, April 16, 2010)

Rental Markets are back!

Real estate investors can buy foreclosures, of course, and they can also benefit from the displaced owners of the foreclosures. They now have "tenants" for their new purchases and their existing properties.

For the most part, from 2000 until early 2007, if you could fog a mirror you could qualify for a mortgage. This easy qualification process lead to two things:

1. The tenant base decreased causing higher vacancy rates and lower rental rates

2. It put so many people in a situation they couldn't afford

Many people had no savings and barely squeezed into a home with minimal down. Many people got put into the interest only adjustable rate mortgages. They qualified when it was interest only or a negative amortization loan, but when it adjusted, they found themselves way over their heads financially.

Also, now many renters are looking for a new place as the home they are living in is suddenly being pulled out from under them because the owner is in foreclosure. Many of them have little or no time to move. Some have only a few days notice, since they didn’t know the owner was even in foreclosure.

I ran into a lady at the carwash who told me she just bought a house in Soledad for $150,000 as an investment. With 20% down, her payments are $650.00 a month, rent is $1200. Nice profit.

So what does all this mean? It means that now is the time to invest in rental properties and we have some great ones, even for first time buyers to look at today.