Live, Work and Play in Monterey

Looking for a good reason to make the move to Monterey County? Here's a few...

Morgan Winery, Bernardus Windery and Pierce Ranch Vineyards were recently recognized for their award-winning wines. Morgan Winery received a prestigious accolade for their 2009 Metallico Chardonnay in Wine Spectator's "Top 100 of 2011." SF Gate named 2010’s Bernardus Griva Vineyard Arroyo Seco Sauvignon Blanc and 2009’s Leojami Pierce Ranch Vineyard San Antonio Valley Grenache on their "Top 100 Wines of 2011."

Condé Nast Traveler readers gave high marks to Monterey County in the 2011 Readers' Choice Awards. Our beautiful city of Carmel once again took honors as one of the top ten cities in the United States.

L'Auberge Carmel

Big Sur and Carmel Valley also received recognition, appearing on the United States Top Hotel List with entries for Ventana Inn and Bernardus Lodge, while the Post Ranch Inn, L'Auberge Carmel, Hyatt Carmel Highlands and the Green Gables Inn all made the cut for the Top Small Hotels in the US. Carmel's own Mission Ranch was ranked as a favorite among the nation's Small Resorts and The Inn at Spanish Bay was ranked as one of the country's Top Resorts. And last, but not least, The Lodge at Pebble Beach was honored as one of the top 100 properties in the world!

The communities of Monterey County are a great place to visit...and an even better place to call home!

Housing Affordable for More Californians

According to a recent report from the California Association of Realtors® the combination of lower home prices and lower interest rates has resulted in an increase in home affordability for the third quarter of 2011.

The percentage of California households that could afford to purchase a median priced home of $292,120 rose to 52% in the 3^rd quart up from 51% in the 2^nd.

Regionally, housing affordability rose in most counties in the Bay area, but was lower in Los Angeles and Fresno counties. Most affordable was San Bernardino County in Southern California and the least affordable was San Mateo County in Northern California.

5 Tips for Efficient Downsizing

There is a lot of downsizing going on in the real estate market today.  Baby boomers realizing they don’t need the big house anymore and are trading down to that little Carmel cottage by the Sea.  And with that comes getting rid of lots of stuff to accommodate the smaller space.  Get a fresh start before the New Year begins by lightening your load! 

The organizational benefits of downsizing can be very rewarding. You can save time, restore order, relieve stress, free up space, and perhaps most importantly, save money. It’s important when you’re organizing and downsizing to try to keep your emotions out of the process. The process may seem overwhelming, but you can do it, and here are some tips that will help you accomplish the task:

1.) Try not to focus on the entire house at once. Break things down room by room. Take on one project at a time and don’t allow yourself to get overwhelmed. If the room itself seems to be too much to take on, just focus on one area at a time, like a closet. Accomplish something before moving on to another area. Small steps yield big rewards. Set realistic goals about the amount of time you need, and create a timeline that works for you. Kind of schedule it, like a doctor appointment!

2.) Evaluate what you have. Everyone has extra stuff. Ask yourself: Do I use this? Need it? Love it? Is it in good condition? If you haven’t used or thought about something in over a year, it’s probably safe to get rid of it. Sell valuable items that you no longer need. E-bay and Craigslist are both great online tools that will help you cash in on things that you don’t need anymore. Or donate. There’s no shortage of organizations that take in the things you don’t use and distribute them to people in need. What a great feeling that is!  I’ll plug CASA of Monterey County here, a great organization to help kids who have been abused or neglected.  Call me for that number.  At 236-4513

3.) Properly store irreplaceable items. Meaningful items such as old photos, yearbooks, wedding dresses, and christening gowns should be properly stored in sealed containers in order to protect them from the elements. You may even want to go one step further with old photos and convert them to a digital format to ensure that they will always be safe. If your children have grown and moved out, as hard as it may be, remind yourself that you are not responsible for providing storage for your adult children.  Someone please tell that to my children…

4.) Stay positive. Getting rid of items that remind you of your past can be an emotional process. At first it might seem difficult to part with those masterpieces that your children created when they were small, but there’s no reason to keep every scrap of paper your child has ever brought home. Instead, concentrate on what’s important you, and visualize what your home will look like when you have de-cluttered and re-imagined your space. I have found that after de-cluttering, most people wish they had done it sooner.

5.) Hire a REALTOR ® who specializes in working with downsizers. This type of move is a specialty and requires a unique set of skills and a great deal of planning and patience. You will need someone who works well with you. You might find yourself needing the services of others, such as stagers, de-clutterers, and junk removers, as well as a storage plan for the things you can’t bear to part with or want to keep safe. With the right connections, you’ll be able to find someone who is not only familiar with your situation, but who has existing relationships and can assure that the process moves smoothly from beginning to end. 

You know, in my last life I was a retailer and part of our services was closet re-organization which I’m still really good at and include it as part of my listing services so call me on that…

© Patty Ross, KRXA Radio Show #220 

Dispelling the 20% Down Payment Myth

In the past,  I have received questions regarding my comment about down payments not necessarily having to be 20%. There is a government proposal that could have significant impact on the future of the housing industry: the QRM, or Qualified Residential Mortgage, as part of the Dodd-Frank Act. According to the proposed QRM definition, lenders must hold 5% of the risk of any given residential loan unless it is considered a QRM, which is a loan that has a 20% down payment and meets other debt-to-income and borrower credit history requirements.

While QRM would not automatically preclude loans from being originated with less than a 20% down payment, these loans will cost significantly more, as the lender will be required to hold a percentage of the risk.

So it seems the speculation and debate surrounding QRM is causing some low-down payment home buyers to believe they will not be able to obtain financing. These prospective home buyers are hearing that lenders will no longer approve them for a mortgage unless they have at least a 20% down payment. It appears this belief stems from misinformation from recent media stories and even some loan officers and real estate agents.

This is simply not true. Mortgages are available for low down payment buyers, both through the FHA and through conventional loans backed by private mortgage insurance.  I’m working with a buyer right now who’s getting a conventional 3% down loan!

While news stories continue to emphasize nothing but “doom and gloom” scenarios, the reality is that market conditions have changed for the better in recent months. While the housing crisis has led to an increase in underwriting risk considerations, a more “normal” lending environment has resumed in a majority of U.S. cities and mortgage rates are some of the lowest in years. (3.87-4.87% today) These low rates, combined with good deals on home prices, equal a time of unprecedented opportunity for potential home buyers.

But potential home buyers need credible, reliable housing finance information and they can find this information through partnerships that we have established with mortgage loan professionals who are up-to-date on the best possible options for buyers. As real estate agents, we are one of the most powerful influencers in the home-buying process, with the ability to provide clarity on misconceptions surrounding the current market and to encourage potential home buyers who may have put their home purchase plans on hold to resume house hunting at full speed.

Otherwise, qualified buyers with low down payments may turn away from the market based on a misconception, which is a lost opportunity for them to purchase a home at a time of high affordability. This is the last thing anyone wants at a time when new buyers are needed to help the market recover.

© Patty Ross, KRXA Radio Show #218 November 4, 2011  

Refinancing sees modest boom thanks to falling mortgage rates

In the November 4th edition of The Monterey Herald, reports out of Washington show the average rate on a 30-year fixed mortgage has fallen to 4 percent this week. This drop nearly matches the all-time low hit one month ago.

According to the  article, "Freddie Mac said Thursday the rate on the 30-year loan dropped from 4.10 percent last week. Four weeks ago, it dropped to 3.94 percent — the lowest rate ever, according to the National Bureau of Economic Research. 
The average rate on the 15-year fixed mortgage fell to 3.31 percent from 3.38 percent. Four weeks ago, it too hit a record low of 3.26 percent."

(Source: Monterey

Playing and Surviving the Interest Rate and Appraisal Game

5 Ways to Get A Lower Interest Rate and The Appraisal Game

Interest rates right now are at an all-time historic low- below 4%, even for a jumbo loan.  So many folks out there are wondering how to go about taking advantage of this situation.

1. Research your home’s value. Looking at your home’s tax value, checking online estimates, or asking a real estate agent for a price opinion can help you determine how much your home might be worth. The only way to know for sure if a refinance is in the cards is to order up a $400 appraisal.  Call me for referrals for your specific area. 831-236-4513
2. Check your FICO credit score. It’s the most widely used score in the mortgage industry. If you are concerned about your credit, buy your FICO score from one of two credit bureaus for $19.95 ($39.95 for both) at www.myfico.com.   You can also estimate your score at the site, or at www.creditkarma.com .
3. Call your current mortgage holder to see if they can offer a better deal without an appraisal and major paperwork. Compare any offer with at least one bank and credit union before ordering an appraisal. It may also pay to work with a mortgage banker who has access to multiple lenders.  Of course I have great referrals for those as well.  Email me at pattyross@kw.com.  
4. Consider the term. Many families are switching from 30-year mortgages to shorter terms. Some are even throwing cash into the mortgage at the closing table. But, since only 24 % of Americans have at least six months of emergency savings, paying the mortgage faster may not be the best choice for many. I really like the idea of starting a housing fund in a savings account that could be used for a down payment when it’s time to move, a remodel, or just a cash cushion.
5. Create a plan for the money freed up by a lower monthly payment. Will you take the savings and throw that money back into the mortgage to reduce principal faster? Will you start saving for college or retirement or finally pay off that credit card debt? Come up with a plan. Otherwise, you risk whittling that money away with nothing to show for it.

5 Ways to Fight a Low Appraisal:

What do you do when the appraisal on the dream home you want to buy comes in below the price in the offer the seller has accepted—even as much as 10 to 20 %  below?
Chances are that raising the cash for your down payment and closing cost has tapped you out. Finding thousands more to make up the difference between the appraised value and the contracted amount is out of the question. However, you don’t have to walk away.  You can fight back. You have options, and chances are you can find a way to make the deal work without increasing your down payment.

1. Get the seller to lower the price. By far, this is the easiest solution, especially if your appraisal comes in less than 10 % of the contract price. So why would a seller go along? In July, 2011 the average home in America took about 88 days to sell, about right for the under $1M market here, 133 days for the over $1M market.  Demand is soft and time is money. Lowering the price might be a cheaper option for the seller in order to get the deal done on time. Sometimes a bird in the hand is best.
2. Ask the seller to offer to carry a second mortgage for the difference. This solution doesn’t cost the seller anything but the buyer incurs greater debt. If the buyer really wants the home but can’t come up with the difference in cash, making payments or a lump sum payment at a later date to the seller is an option.
3. Do your research and dispute the appraisal.  You have the right to get a copy of the appraisal from your lender and to find out who did it. If your appraisal was conducted by an out-of-town appraiser unfamiliar with your market, you have every right to demand a new appraisal.
4. Ask the lender for a new appraisal. Should you find that you have a good case that the appraisal wasn’t fair or accurate, ask your lender for a new appraisal. Depending on how convincing your argument is, your lender has the ability to override the appraisal estimate, which is unlikely, or to order a new appraisal, which is more likely.
5. Get your own, independent appraisal. If you order your own appraisal and your loan is an FHA loan, ask the lender for a list of approved appraisers. Usually the bank will review your appraisal and ask the previous appraiser if they agree or disagree with the newly submitted one.

If the first appraiser disputes your appraisal, the bank may request a third appraisal, or they may just reject your appraisal.  However, if the first appraiser agrees with the disputes you present, they may adjust their original appraisal and you may get a better price.

If these tactics fail and you can’t make up the shortfall in the appraised value, you may find yourself moving on. If so, be sure that you were protected by a contingency clause in the sales contract, stating that the transaction can be terminated if the home doesn’t appraise at, or above, the sales price.  And of course any good agent knows that.

© Patty Ross, KRXA Radio Show # 217

Monterey County Sees Average Home Sale Price on the Rise

Have we finally seen the bottom of the market in Carmel?

It's very possible, based on recent stats published in the Monterey Herald ("Average home sale price rises 10 percent," Lance Wallace, 9/24/11)

Monterey County real estate sales were up slightly from July to August, with the average sale price rising 10.4percent to $441,707.
There were 269 homes sold in the county in August, up 12 from July, the Association of Realtors reported. The August total was off five from a year ago.
Sales in Carmel, which have been strong all year, dipped from 16 in July to 11 in August, although the average sale jumped from $1.33 million to $1.65 million. 

Carmel Valley sales were down from 12 to eight, while the average sale price jumped from $607,000 to $775,000.

Sales in South County, which has the lowest prices in the county, rose from 43 to 55. Sales were up by two in East Salinas, which has the second-lowest prices.

In Pacific Grove, there were 13 sales in July and 18 in August. There was an average of 11.3 sales a month for the first half of the year.

So remember, while it's been said before, real estate really is all about location. So before you buy or sell, make sure you are working with the right information for your local market.

The Eternal Question...Which is a Better Investment -- Stock or Real Estate?

Writing in the Wall Street Journal, USC Economist, Robert Bridges tells us that “a dollar used to purchase a median-price, single-family California home in 1980 would have grown to $5.63 in 2007, and to $2.98 in 2010. The same dollar invested in the Dow Jones Industrial Index would have been worth $14.41 in 2007, and $11.49 in 2010.”

Timing
Bridges makes a carefully constructed comparison which includes 2007, the top of the real estate market. According to the Federal Housing Finance Agency, home prices this April were down 19.3 % from the 2007 peak.  

Surely the comparison would have been far more interesting if it looked at stock values and compared Oct. 12, 2007 with March 6, 2009. During this period the Dow went from 14,093.08 to 6,626.94. As this is written the Dow stands at 11,493.57.

So, if you pick particular times you can truthfully say the Dow fell more than 50 percent in a given period or that prices actually doubled, depending on what you want to prove.

Reality
Bridges offers an interesting comparison of economic results: “If a disciplined investor who might have considered purchasing that median-price house in 1980 had opted instead to invest the 20% down payment of $19,910 and the normal homeownership expenses (above the cost of renting) over the years in the Dow Jones Industrial Index, the value of his portfolio in 2010 would have been $1,800,016.”

The reality is very different. Few buyers purchase with 20 % down — that's why the marketplace is dominated by conventional loans backed with private mortgage insurance as well as FHA- and VA-insured financing. Moreover, even if investors buy stock they still have “normal homeownership expenses” assuming they prefer to live indoors.

Segmentation
No less important, Bridges does not look at national home prices, he looks with laser-like focus at California, one of the hardest-hit foreclosure centers.

But just as Bridges has picked one particular real estate market for his comparison, we could also pick a stock or two. For instance, we might pick GM, a long-time member of the 30 companies which made up the Dow Jones Industrial Average. Or, at least was a member of the Dow until 2009 when it was replaced by CISCO systems.

Such changes mean the Dow is not a consistent measure because the index evolves to include a changing cast of corporate characters. Imagine where the Dow would stand if it continued to include the results of such past index members as Standard Rope & Twine (1896), Federal Steel (1899), Studebaker (1916), Woolworth (1924).

The Dow components of 2007 and 2009 are different from the Dow components in 2011. If the same companies were kept in place then the index results would be different. This is the equivalent of looking at home values in 2007 and 2011, but excluding 2011 short sales and foreclosures — something not done by appraisers, lenders, investors or homebuyers.

Perspective
A segment of the population believes things are in such bad shape today that the only way to preserve economic value is to stockpile gold, tent pegs, and sandwich makings. In this view, nothing else has value, and it's entirely possible that values will fall further — including both stock and real estate values.

Given events in Iceland, Ireland, Greece and Portugal — and looking at U.S. job erosion and the budget debate — it's hard to dismiss those who believe our economy is contracting and with it much of our wealth, influence and social stability.

Yet, as dim and dark as things are for many Americans, there's also a case to be made that selected real estate remains an attractive investment option.

We have a massive internal market, an established infrastructure and much to do. We need to improve our roads and bridges, become energy independent and better educate our children, among many other needs. When we inevitably undertake such projects there will be a new round of job growth and economic development.

Moreover, our population is growing. We now have more than 311 million people inside our borders — that's about 10 million new people since 2007 and they all need housing.

Want more? Mortgage rates are below 5 %. Mortgage interest is deductible. Investment real estate is depreciable. Home prices are down. Home prices in major foreclosure centers — including areas with wonderful climates — are way down. Foreclosure prices are down most of all — distressed properties are selling with a 20 % discount nationwide according to the National Association of Realtors.

Options
And what about alternatives? Yes, the stock market is alluring but can you really compete against the computer programs which make most of today's trades in microseconds?

Or, how about a low-risk certificate of deposit?  A five-year CD will now yield about 2.15 %. That's great, except that the inflation rate reached 3.6% in May. Your CD will lose buying power each month the rate of inflation is higher than the interest rate.

Meanwhile, what about rents? While home prices have swooned rental rates are rising. According to REIS, Inc., apartment rents were up 2.4 % during the past year and vacancies were down.

Large numbers of people have been foreclosed but they still need shelter. While ownership may not be affordable and credit has been damaged, many such households can readily afford a good rental and that's important to investors.

Toward The FutureIn the end I'd say Mr. Bridges is half right: Individual stocks have sometimes been better investments than specific pieces of real estate and sometimes particular parcels of real estate have been a better option than selected stocks.  He does also say “Owner-occupied homes will always be the basis for healthy and stable neighborhoods”.

And let's just leave it at that, shall we?

© Patty Ross,  KRXA Radio Show 

Homeownership Matters - Now More than Ever!

According to Real Estate Magazine, we are a nation of homeowners—67% of American households are owner-occupied. And housing is a key driver of our economy, accounting for 15% of our Gross Domestic Product in general. The article goes on to say:  

"Research shows that for every home purchased, $60,000 is pumped into the economy for furniture, home improvements and related items. Plus homeowners pay 80-90% of individual federal income taxes, contributing to federal programs that benefit all Americans.

Despite media rumors to contrary, homeownership has a significant, positive impact on net worth, educational achievement, civic participation and overall quality of life. Owning a home is one of the best ways to build long-term wealth. In the past 12 years, a typical homeowner’s net worth has been 31-46 times that of a renter. Plus, most homeowners enjoy stable housing costs. In fact, studies show that fixed rate mortgage payments typically stay the same, while rent has increased at an average rate of approximately 3% per year in the last 10 years.

The National Association of Realtors contends that homeowners contribute more to their communities by voting and volunteering more. They do not move as frequently as renters, bringing stability to neighborhoods, which helps reduce crime and support upkeep.

And it has been shown that homeowners enjoy a better quality of life. They tend to be happier and healthier, and feel a greater sense of control over their lives. They are free to redecorate, renovate and modify their homes as they wish. And their children tend to do better in school and stay in school longer, according to a recent white paper by NAR titled “The Social Benefits of Home Ownership.”

So far this year, we have seen plenty of highs and lows in our local, national and global economy. So this informatin is good news, because right now, we need good long term investments now more than ever.

Remember...Spread the word...Homeownership DOES make a difference!

Ch-Ch-Ch-Changes in Loan Limits: What They Could Mean to Buyers and Sellers Like You

New research from NAHB (National Association of Home Builders) examines the scope of impact on housing markets from the scheduled October 1, 2011 decrease in the GSE (government sponsored enterprises) and FHA(federal housing administration) loan limits. 

These loan limits determine what types of mortgages may be securitized by the GSEs, Fannie Mae and Freddie Mac, or insured by the Federal Housing Administration. Loans that fall outside of these limits would be subject to tighter credit conditions, including higher interest rates and larger down payments.

This increase in the cost of credit for such loans could mean weaker demand for homes in the affected price ranges, which could result in downward price pressure in many areas of the country, particularly high cost markets (like us). As home sales are inter-related (for example, starter homes are sold to first-time home buyers by move-up buyers), this pressure on prices could spill over on other homes in the affected areas.

Using reasonable assumptions concerning down payments and Census data of housing values, the new analysis finds that the scheduled declines in GSE loan limits will affect 204 counties, containing 1.38 million owner-occupied homes (5 % of homes in the U.S. in the affected price ranges.)

Adding this number to the number of homes that are currently outside the temporary mortgage loan limits produces an estimated total of 5 million homes (7 % of U.S. homes) that will not be eligible for GSE-backed funding if they were put on the for-sale market. The 204 counties affected contain 27 % of all homes in the nation.

The effects for the scheduled declines in the FHA limits are more expansive. These declines will affect 620 counties, adding 3.87 million homes (11% of all U.S. homes) to those outside the temporary loan limits, for a total of 12.2 million homes (16% of U.S. homes) ineligible for FHA-insured mortgages. The 620 counties affected contain 59 % of all homes in the United States.

Given the potential to weaken housing demand for homes that in October would fall outside of the present-law loan limits, plus spillover effects due to inter-related sales, the expiration of the present-law loan limits will be a negative factor weighing down housing in the Fall.

This analysis also suggests concern with respect to a recent proposal to eliminate the floor, or nation-wide minimum, for FHA loan limits nationwide. Under present law, and counting U.S. territories like Puerto Rico, 2,475 counties have FHA-loan limits at the floor ($271,050). As of October 1, 2011, this number will grow to 2,773 as the counties described earlier experience a drop in their applicable FHA loan limit. 


Under a proposal to eliminate the FHA floor, the vast majority of these counties, comprising about 85% of all counties, would experience a decline in the number of homes eligible for FHA-insured mortgages, increasing mortgage costs for a significant number of home purchases in the United States and adding to downward price pressure.  

After October 1^st here in Monterey County our new loan limit for GSE backed loans are going from $729,750 to $483,000. A recent article in the Monterey Herald, published on August 20th, noted "that number is determined by the median sale price for the county, even though there's a big difference between the Peninsula and Salinas. Many other areas, including Santa Cruz County, will see a $625,000 limit. The Monterey County Association of Realtors is seeking legislation that would put it in with the others at $625,000."

So what this all mean to us, or more particularly buyers and sellers, is that the time to get your house on the market or buy a house is before October 1^st.

© Patty Ross - KRXA Radio Show #212

Talks to Settle Foreclosure Probes Could Take Months

Talks to settle state and federal investigations into botched foreclosure paperwork will be going on for a long time, according to government officials after holding their first face-to-face meeting with top bank executives, in June of this year. They cautioned that they are looking at months, not weeks or days.

Representatives of the five largest mortgage servicers—Bank of America Corp., JP Morgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. have been meeting with government officials in Washington. 

But according to the Sunday Wall Street Journal, "Efforts to reach a settlement that would end the long-running probe of foreclosure practices are snagged over whether banks will get broad legal immunity from state officials for mortgage-related claims."

Previously, there was discussion of a settlement of investigations into problems in the foreclosure process, including bank employees signing documents without reading or understanding them, a practice called robo-signing.

Iowa Attorney General Tom Miller, who is leading the negotiations for the states, says that the session was a good first meeting but that no agreement was imminent. Attorneys general of all 50 states and representatives of seven federal agencies are investigating the foreclosure troubles.

The two sides have exchanged draft proposals covering new guidelines for foreclosures and mortgage servicing. Banks could be forced to pay as much as $25 billion in a settlement and might be required to allow homeowners to sell their houses for less than what is owed on their mortgages.

So, what does all this mean to us?  It means that as long as there are no or limited new foreclosures coming on the market, prices should be stable and not continue to decline, good news for sellers for a change!

Carmel Home Sales are on the Rise

The auction gavels have fallen silent, the roar of the engines has faded into the night, and there were definitely some big winners at this year's Pebble Beach Concours d' Elegance. Congratulations to all the winners and participants and a big thank you to the local communities for all their support. It was great to see the Concours on the Avenue return to downtown Carmel-by-the-Sea this year, too.

The Monterey Peninsula definitely made news this week, with highlights of the events and auctions being televised nationwide.  (This beautiful Bentley was definitely headline worthy!)

But cars aren't the only thing making news right now in our local market. Contrary to the gloom and doom real estate news on a national level, we here in Carmel are seeing a boom in sales. While home sales in other areas of Monterey County continue to lag behind last year's figures, Carmel is up by 35% with some buyers even paying "above asking price."

According to the most recent figures from the Monterey County Association of Realtors, there were 122 homes sold in Carmel through July 31 this year, up from 90 for the same period last year. The average sale price for a home in Carmel for the first half of 2011 was $1.34 million.

And that really is good news! To read the full text of the Monterey Herald article, click here.

Coming to town next...the Monterey Jazz Festival. . . Here's to real estate continuing to hit just the right notes!

The Monterey Peninsula Revs Up for Classic Car Week

What's world famous and a draw for locals, tourists and celebrities alike? The answer... it's the annual Pebble Beach Concours d' Elegance, which has officially motored into town. And with it comes plenty of opportunities to see beautiful automobiles set against stunning backdrops at locations across the Peninsula -- from the Pacific Ocean to Carmel Valley.

Here's a quick look at what's coming up: 

Thursday 8/18

Pebble Beach Tour d'Elegance | 7am - 3pm | Cars on display on Ocean Ave in Carel from 12-2pm

Friday 8/19 - Sunday 8/21



The Quail, A MotorSports Gathering | 10am - 4pm | Quail Lodge, Carmel Valley

Rolex Monterey MotorSprts Reunion | Fri - Sun - 8:45am - 5:00pm | Mazda Raceway, Laguna Seca

Concourso Italiano | 9am - 5pm | Laguna Seca Golf Ranch, Monterey

Pacific Grove Concours Auto Rally | 1 - 5:30pm | Lighthouse Ave, Pacific Grove
Pebble Beach Retro Auto | Fri - Sun - 10am - 5pm | Pebble Beach

Saturday 8/20
Concours d' LeMons | 9:00am | Laguna Grande Park, Seaside

Sunday 8/21

Pebble Beach Concours d'Elgance | 9am - 5:30pm | 18th Fairway, The Lodge at Pebble Beach

And who knows, maybe while your touring the town, you'll see something that would look great with a sporty little number (like the one I posed for a photo with) parked in front!

Here are my top picks:

56 YANKEE POINT DRIVE | Carmel Highlands | Offered at $7,499,000

One of the newest homes on the Ocean front for the entire peninsula. 3 BR, 3.5 BA,  4,268 sq. ft. Whitewater views, professionally designed, meticulously maintained. Decks accompany the spectacular landscaping overlooking Yankee Point and private beach.

30560 AURORA DEL MAR | Carmel Highlands | Offered at $6,195,000
A rare opportunity to acquire ocean front property in the exclusive gated oceanfront enclave of 18 homes, Otter Cove. This 3 BR, 3 BA, 4,357 sq. ft. home is sited to take advantage of the dramatic white water views and close proximity of Otter Cove, the clean architectural lines of this private home on 1.1 acres sets the stage for the rocks, the white water and the ocean to be the centerpiece. A place to experience.

26230 DOLORES STREET | Carmel | Offered at $2,950,000

Gorgeous 3 BR, 2.5 BA, 2,500 sq ft house-outstanding white-water ocean view-3 levels w/ decks! Large lot w/ garden and outdoor FP. Steps to Mission Ranch/blocks to beach.Open floor plan, high ceilings/wood floors/fireplace. Fabulous kitchen w/ granite, Viking appliances & dining area. Beautiful stairway to 3rd floor loft w/ deck-view. Master suite w/ luxurious bath, plus room for gym/wine cellar/media. Great design.

2876 OAK KNOLL ROAD | Pebble Beach | Offered at $1,698,000 
Short Sale Opportunity. This 5-year-new custom built home boasts spectacular white water ocean views from nearly every room. Located one block from famous 17-mile drive and Spanish Bay. Enjoy the view of the surf as it crashes to shore from your master bedroom suite and view deck. Professionally landscaped grounds are perfect for entertaining. Pebble Beach at its finest.

Debunking Today's Common Foreclosure Myths

You shouldn't let emotions or misinformation stop you from keeping your home. People fear foreclosure almost as much as they fear death. But unlike death, foreclosure can be prevented.

Unfortunately, just as some people ignore an illness' symptoms in hopes that it will just go away, some troubled owners are afraid to confront their problems and take the necessary actions to save their homes. But with so much misinformation flying about, who can blame them?

Here are some common responses and misconceptions.

Dread: "If I tell the mortgage company I'm having a problem, it will speed up the foreclosure process."

Contacting your lender is an important first step, and the sooner, the better. It provides you with an opportunity to explain your situation and what steps you are taking to deal with it. Yes, your lender can be your adversary, but that's much later in the process. Right now, the lender can be your best ally. So call the lender early.

Fear: "If I miss just one payment, I'll lose my home."

The foreclosure process doesn't even begin until you are at least 90 days delinquent on your mortgage. But by that time, you are three months behind, and that's a deep hole from which to try to dig out.

It's much easier to get back on track after missing a single payment, so reach out to your lender and ask for help in making up your deficit. Even if you think you might miss a payment or two, let your lender know what's up. Lenders have a financial interest in keeping you in your home and may be willing to modify the terms of your loan or devise a repayment plan.

Regret: "I'll rob Peter to pay Paul until I can get back on my feet."


Many people try to ride out their financial difficulties by depleting their savings or even dipping into their retirement accounts. Although using your mattress money may be the right step, pilfering from your IRA or 401(k) plan should be the last thing you do, if you do it at all. Long before that drastic step, seek help. Otherwise, by the time you do seek help, you could be in even more desperate straits and your options will be fewer.

Ignorance: "What choice is there but to lose my home?"

There are plenty of choices, but most people don't know what they are. And they won't until they speak with a lender. Yet many delinquent borrowers think they can handle their problems on their own without help. Most can't.

Panic: "I'm receiving so many offers from people who say they are trying to help me save my home that they all must be scams."

Yes, there are a lot of dishonest people offering false promises. And if you take up with one, it could make your financial situation much worse. At the same time, lenders are hiring all sorts of companies to try to make contact with borrowers who won't answer their mail or pick up their phones. So how do you know the good guys from the bad?

Beware of cold callers who don't already have your loan number. If that's missing, the deal is probably bogus. According to Freddie Mac one of the country's largest mortgage investors, the companies it hires to deal with delinquent borrowers will know that number.

Other tip-offs include upfront fees and pressure to sign something immediately. You shouldn't have to pay anything in advance. Pay only for services rendered. And don't put your signature on anything, especially something that's incomplete, until you have a chance to run it by a financial advisor, your tax preparer, or someone you trust.

Terror: "My lender isn't responding to my inquiries."

Don't give up. Never give up. Again, this is a process, and it takes longer than you think. So be patient.

At the same time, keep detailed records of all your calls. Once contact is made, write down the name of the person with whom you spoke, his or her identification number, the date and time of your conversation and a summary of what was said. Also make copies of all your correspondence and other paperwork. Lenders tend to lose things.

Alarm: "To get my lender's attention, I should stop making my payments."

You don't need to be behind to get help. Millions of owners are in the same boat as you. Lenders are absolutely swamped. Even years into the housing crisis, they still don't have the staffing with the training and experience to handle the onslaught. So be patient — and keep trying and trying to reach your lender.

Keep making your payments, too — to your lender, no one else. If you stop, it will hurt your credit and increase the possibility that you will lose your home. And if someone wants you to mail the payments to him or her instead, you almost certainly will lose your home if you do.

Alert: "If I've been turned down for a loan modification, there is no point in seeking further help."

Just because you didn't qualify before doesn't mean you won't qualify now. Look at the federal loan-modification programs as well as your lender's. Besides, program parameters change all the time, so the rules might have been liberalized since you last sought help. Or your situation may have changed for the worse.

A housing counseling agency can help at any time, but it can be particularly helpful if you've been rejected. The Consumer Credit Counseling Service of Monterey County says many owners are refused because they did not provide proper documentation or failed to consider all their expenses.

Also, the lender may have made a processing error or not followed the rules. You won't be able to spot these miscues, but an experienced counselor will. You can find a government-approved counseling agency at http://www.hud.gov./

© KRXA Radio show #213, August 5, 2011

Understanding Buyers Closing Costs – Who pays what?

With home prices so low and as a consequence, so many 1^st time buyers, I thought this tutorial about closing costs might come in handy. 

What Are Closing Costs?

Closing costs are fees paid when completing the sale of a home. The closing is the process that finalizes all legal documentation and results in transferring property ownership to its new owner. Some costs are one-time fees and others are recurring fees that will be paid over the life of the home loan.

Who Pays for Which Fees?
The seller and buyer each pay a share. Some costs are negotiable and regional customs may determine who pays what. Lenders are required to provide a good faith estimate of what the total closing costs will be, but that is just an estimate. Closing costs generally total about 3 to 5 percent of the total sales price of the property.

The buyer pays one-time, or non-recurring, fees relating to the property and the loan. Property-related fees include the down payment, property appraisal, home inspection, natural hazard disclosures, deed recording and purchase of a home protection plan. Non-recurring charges relating to the loan usually include fees for the loan application, credit report, loan origination, points (also called loan discount fees), private mortgage insurance (PMI) premium, title insurance policy premiums, deed recording, transfer of city, county and state taxes, escrows for homeowner's insurance and property tax, and the buyer's share of pro-rated costs for utility bills and property taxes. The buyer also pays clerical fees for courier and notary services and general processing and document preparation fees.

Recurring costs are the monthly payments. PITI—principal, interest, taxes and insurance—are paid by the buyer each month. These costs are best paid in cash if possible, as rolling them into the loan will burden these fees with additional interest charges.

Points / Loan Discount Fees
A point (or loan discount fee) is a sum paid by the purchaser to buy down the interest rate of a loan. Another way to look at points is as pre-payment on the loan's interest. Each point equals 1% of the loan amount.

Important Documents
Both the buyer and the seller will have signed a thick collection of important documents by the end of the process. When the transaction is complete, the buyer should have the deed (proves ownership), the mortgage and note, insurance policies, affidavits (binding statements made by either party), contract riders (anything that alters agreements in the sales contract), the Truth in Lending statement, and the HUD-1 settlement statement. The settlement statement spells out precisely what closing cost fees are being paid.

It is important to store all property sales or purchase documents in a safe but accessible location, as these papers will come in handy for preparing taxes and for other purposes through the years.  I provide a CD now of the entire transaction to those who don’t want all that paper.

(c) Patty Ross, KRXA Radio Show #209 - Aired June 3, 2011

Green Homeowner Tip: How to Dispose of Hazardous Waste Properly

We all have one—that shelf or cabinet with leftover paints, old bug killers and unwanted cleaners. You don’t want that toxic stuff near your kids or pets so you keep it out of reach.

It’s equally as important to keep those dangerous chemicals out of the environment. So when it’s time to get rid of hazardous household items, make sure you do your part and dispose of them the right way.

It’s estimated that every American home has an average of 100 pounds of hazardous household waste. This includes everything from paint and thinners to used motor oil, pesticides, bleach, cleaners and even batteries. Compact Fluorescent Light Bulbs (CFLs) are also considered hazardous waste due to the small amount of mercury they contain.


Let’s start with what not to do when getting rid of all this stuff. Pouring hazardous household waste down any drain sends the toxins directly into our water supply.
Drains include the ones inside your home and the storm drains outside. Pollution flowing into storm drains is called storm water pollution and it’s the leading cause of fresh water pollution in America.


You should also never put hazardous household waste in the trash. Whether it’s sending it to a landfill or burning it in a trash pile, both can release toxins directly into the air, land and water. Hazardous household waste needs to be disposed of properly. This means taking it to a qualified recycling center. You can also contact your county waste collection office for recycling information. Our is in Marina at the Monterey Regional Waste Management District.  Many communities hold hazardous household waste collection events throughout the year so be looking for those too.


Another way to reduce the amount of hazardous household waste in your home is to start buying less of it. Many times there are natural alternatives that work just as well. Eco-friendly cleaners and pesticides are more widely available on store shelves and while they may cost more to purchase, keep in mind the true cost of an item is always more than just the money you spend.


Just because the hazardous household waste may be out of sight in your home, it shouldn’t be out of mind. Identifying it, disposing of it and reducing the amount in your home are all easy ways to do your part for everyday green living.

(C) Patty Ross - KRXA Radio Show #208  - Aired May 27, 2011

Bankrupt homeowners shed second mortgages

Some struggling homeowners are using a little known, but increasingly popular, provision of the bankruptcy code to eliminate second mortgages and avoid foreclosure.

Bankruptcy laws prevent homeowners from eliminating the debt of a first mortgage if they plan to stay in their home.  But second mortgages are treated differently.  Second mortgages can be declared unsecured debt when there is no equity to cover them.

When that happens in a personal bankruptcy proceeding, the second mortgage is put on hold and no payments are required while the homeowner completes a repayment plan for other debts, which typically takes three to five years.  At that point, the second mortgage is eliminated.

While this strategy has gained in popularity among homeowners, mortgage bankers are not in favor of the practice, and have called it “a troubling phenomenon.”  However, there is little the mortgage industry can do, aside from seeking to change the law, which could be difficult given the current partisan lineup in Washington.

The law has been like this for years, bankruptcy lawyers say. It's just never been used as much because in the past there was usually enough equity in a home to cover the second mortgage.

Brette Evans, a San Jose bankruptcy lawyer says "We're having great results using the rule. In one recent case, a small-business owner was able to hang on to her home by setting aside a $240,000 second mortgage”, she said.

That put the borrower in "a safe zone" where she could work out a modification of her first mortgage.

(c) Patty Ross - KRXA Radio Show #207  - Aired May 20, 2011

Home buyers and mortgages – many flunked the test!

A new survey indicates that many home buyers are ill-prepared to take out a mortgage, answering basic questions about mortgage information incorrectly nearly half (46%) of the time, according to Zillow Mortgage Marketplace.

• More than 1,000 home buyers were asked to respond true or false to eight mortgage-related statements, including “The rates of 5/1 adjustable-rates mortgages always increase after years.”  Although the correct answer is false, because 5/1 ARMs do adjust after five years, but the rates could go up or down, 57% of people surveyed answered this question incorrectly.
• 45% of home buyers surveyed also incorrectly stated that home buyers should always buy mortgage discount points. The fact is the decision hinges on how long the borrower plans to own the property, and in some situations, buying mortgage discount points is not worthwhile.
• An additional 1/3 of respondents don’t understand that lender fees are negotiable and vary by lender, incorrectly thinking lenders are required by law to charge the same fees for credit reports and appraisals.
• Survey respondents also believe that pre-qualifying for a loan means they have secured financing.  With a pre-qualification, which is the earliest step in the mortgage process when a lender approximates the amount the borrower can afford, the lender does not run the borrower’s credit or request any documentation to verify the information provided by the borrower.
• Slightly less than 1/2 of the polled prospective home buyers also didn’t understand that Federal Housing Administration (FHA) loans are available to all buyers, but instead believe only first-time buyers qualify.  In reality, FHA loans can cost less for many buyers, including repeat buyers with low to average credit scores and with down payments of less than 20%. 

(c) 2011, Patty Ross -KRXA Radio Show #206  Aired May 13, 2011