Sand Creek Plaza

You’re paying your bills on time, but your landlord isn’t. Now you are the one holding the eviction notice. So what next?

This scenario is becoming all-too-familiar for thousands of renters nationwide. Unintended victims of foreclosures are dealing with problems first hand due to the failing economy. Banks are booting good tenants into the streets with little to no notice. Some banks are even seizing property from a delinquent owners, ignoring tenant leases. In some cases, families are forced into shelters for temporary housing because they have little or no savings to cover moving costs such as a first month’s rent, and a security deposit. Some landlords are not even coughing up the security deposit left by the tenants. If you, or someone you know is faced with a similar situation, there is a solution.

Thankfully Fannie Mae has pledged to change that with its new renter policy starting this month. The plan will allow renters living in foreclosed properties to sign new leases with Fannie while the property is up for sale, or give the tenants money to move. Fannie has yet to establish the length of the leases, and the amount of move-out assistance will vary by state and property.

Freddie Mac has also jumped on board and said it would unveil a similar program in the next few weeks. But how does a renter know if his landlord has a mortgage held by Fannie Mae or Freddie Mac?

Fannie Mae plans to reach out to tenants, spokesman Brian Faith said.

Since most tenants don’t normally know the details of their landlord’s mortgage arrangements, Fannie Mae will be contacting the tenants in foreclosed properties they own to make them aware of the option to stay in their home through a lease with Fannie Mae.

Fannie estimates about 4,000 tenants live in the company’s foreclosed properties and would be eligible for the plan.

Unfortunately, that’s just a fraction of renters facing the consequences of a landlord’s foreclosure. About 40% of all renters, live in single-family homes, many of which are owned by mom-and-pop investor landlords. This is where the risk lies.

What should you do if you receive a foreclosure or eviction notice?

1. Call the sheriff’s department first. Find out how long the foreclosure process takes. Is it 60 days or 90 days? Knowing your timeline to work with will help you prepare for the worst-case scenario.

2. Find out the rental laws in your state. Some states, including California, have recently passed legislation giving renters a grace period, ranging from 30 days and up, to stay in a property after it has been sold in foreclosure. Other states are considering similar legislation.

3. The lender’s name or its lawyer will be on the eviction notice. Contact either one to let them know you are in the property. Find out what your options are. Will the lender let you sign a new lease? Or is the bank offering some cash assistance for moving out? Don’t let the lender bully you into moving out sooner than stated by law.

4. If you are nervous about negotiating with the lender on your own, contact a local nonprofit housing counseling agency for help. HUD’s website lists agencies by state, or you can call (800) 569-4287.

5. The U.S. Department of Housing and Urban Development outlines tenant rights by state on its website at www.hud.gov

The numbers are in, and they’re exactly what we expected. With banks unloading a record number of foreclosures, bay area home sales soared, while the median price plummeted. This is according to a real estate report released Thursday 11-20-08.

Most of the action, and the big bargains, were in areas where bank repossessions have become a fact of life. Almost half of all existing homes sold were foreclosures. Their bargain-basement prices sent the median price tumbling 45 percent during the past year to $375,000. This is all according to research firm MDA DataQuick of San Diego.

Despite an economic crisis and a stock market plunge, the fire-sale prices pulled more buyers into the market. A total of 5,624 resale homes changed hands in the nine-county Bay Area in October, up 66.2 percent from a year ago.

The Bay Area median price hasn’t been this low since October 2001, when it was $370,000. However, the median’s tumble reflects more the swing to lower-priced homes in lower-priced areas where foreclosures are commonplace, rather than an across-the-board depreciation. This doesn’t mean every Bay Area house has gone back to 2001 levels, but it does tell an interesting story about where people are buying, and where they are not.

During the boom years, prices in lower-cost areas appreciated as subprime buyers rushed in. With the bay area in a buying frenzy it’s time for you to secure a cost effective location that will outlast these economic hard times. Sand Creek Plaza specializes in finding you great deals in this crazy real estate market. Our knowledgeable staff is a phone call away.

The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD’s Federal Housing Administration (FHA). The program begins October 1, 2008 and ends September 30, 2011.

The housing rescue legislation that was signed into law recently is called the Hope for Homeowners Act of 2008. Sound hopeful? Maybe! Oversimplified, the act offers government guarantees to lenders who are willing to work with you to keep you out of foreclosure. But, you have to be “qualified” for the program.

Here are some key points about the program and its qualifications:
* The program goes into effect October 1, 2008. Until then, look for other options.
* Your lender has to be willing to write down your loan to 90% of your home’s value. In other words, your existing mortgage lender has to be willing to reduce the balance of the mortgage so that there’s a 10% equity cushion in the property.
* Your existing mortgage must have originated before January 1, 2008.
* The program is available for your primary residence only.
* You must be devoting more than 31% of your income to your mortgage payments.
* Income must be verified to qualify for the new loan, and you have to be able to afford the payments on the new loan.
* If you sell your home in the five years following this refinancing, you have to share the profit with the government.  The government’s share is calculated on a sliding scale for the first five years; after that, you’ll split the profit 50/50.

Every report I’ve read about this legislation says that the bill will save 400,000 homes from foreclosure. It is estimated that the funding limits for those federal loan guarantees will make it possible to help that many families. Lenders take the write down, but avoid the expense and risk of foreclosure, and benefit from rebounding property values if foreclosures slow and excess housing inventory is eliminated. And, if they don’t take advantage of this program, there is a good chance that an irate Congress will increase regulation of the mortgage industry.

It remains to be seen whether the Hope for Homeowners Act of 2008 offers real hope, or becomes another infamous bail out that helps only the wealthy. It appears to me that the program will offer the most benefit to those who are struggling, but are current enough on their payments to look like a good risk. If you’re looking for more articles about HOPE act you can read the press release here.

http://www.hud.gov/news/release.cfm?content=pr08-150.cfm

While foreclosures are on the rise many business owners renting their location have found themselves in bad situation. The building owner has not paid the note, and the bank is foreclosing, leaving them scattering for a new location. With moving costs and down time, some businesses are closing their doors completely. If you know of someone who is underwater and struggling to keep up with their higher payments, or is being forced out of their building, tell them you know a business park who can help.

It’s important in this economy for agents to educate consumers about both of our roles in a real estate transaction.  The Internet has more than enough information to help buyers identify neighborhoods they’re interested in exploring further, so I explain to clients that they don’t need an agent to begin the first part of their property search.  From that point on, however, an experienced, professional agent is must have. An agent without knowledge of the property he is showing is very noticeable. At Sand Creek Plaza we pride ourselves with keeping our tenants knowledgeable and aware of the property details & amenities that we offer. For those of you who are looking for a new facility to relocate your business be sure to read over what SCP offers.

* Highly Traveled Sand Creek Road
* Signalized High Visibility
* Occupancy Immediate
* Major Brentwood Thoroughfare
* 30 Foot Store Front
* Covered Outdoor Patio Area for Food Use
* Adjacent to exising Sand Creek Business Center — 145,000 sq. ft. of office, 90% leased
* Adjacent to 120 Existing Occupied Townhomes
* Divisible
* Old Republic Title in Suites A & B
* Across the Street From Los Medanos College
* 140,000 square feet of planned additional office south of Brentwood Self Storage