Foreclosure Rescue Scams

With the recent increase in foreclosures, scams through “foreclosure rescue companies” have also appeared on the scene. They claim that they will help you, but really they are intending to make a profit at your expense. If your property is in foreclosure, be cautious.

This is most likely the first time you have been in this situation. This is a time in which the homeowner is very vulnerable. Con artists love to take advantage of you in these uncharted waters.

There are a few points to be aware of when dealing with a “foreclosure rescue company.” Watch out for:

*Asking for mortgage payments to be paid directly to his/her company or bank account, rather than your lender.
Reality: They pocket the money, and you STILL lose your home.

*They claim “We’ll save your credit!” You pay them a fee and transfer your property deed or title to theirs to avoid foreclosure on your record.
Reality: The foreclosure will be reported against the borrowers on the note, not anyone else.

*They say they’ll give you money, if you just sign the house over to them so they cure the default.
Reality: There is nothing wrong with this, as long as the party taking over really does pay the loan current, but you are still ultimately responsible for the loan. BE CAREFUL!

*They say they’ll buy the property, lease it to you, and you’ll have the option to buy it back.

*They ask for money up front before providing any service.

*They instruct you not to contact your lender, lawyer, housing counselor, family, friends, or others.

*They require payment only in the form of cash, cashier’s check, or wire transfer(Moneygram).
Every encounter I have had with this particular point included the request that the money be sent somewhere in Africa, usually Nigeria. They make it seem safe and legitimate. They claim they are out of the country with a church group, and play the part of the devout religious person, ending their communications with “God Bless You.”

Take home message is, if you’re in foreclosure or about to go through foreclosure, DO NOT let yourself become trapped in a scam with a “foreclosure rescue company.” The best thing to do is to contact your lender and a REALTOR. Both can help you through this trying time. Keep your head up. You will get through this.

California School Recognition Program

Every year in California, schools are recognized for their academic achievement, and closing the “achievement gap” among groups. High quality education should be the right of every student in California. The school districts, county offices of education, and the California Department of Education are responsible for making sure that every student, regardless of race, religion, or social status, receive this right. Closing this “achievement gap” between groups has become a top priority for State Superintendent of Public Instruction Jack O’Connell. He believes that all students having access to quality education is important for a strong education system in a strong California.
The 2009 California School Recognition Program (CSRP) honors schools that have shown educational excellence for all students. Schools must meet various eligibility criteria based on No Child Left Behind (NCLB), Adequate Yearly Progress (AYP), and Academic Performance Index (API) requirements. The criteria for selection of schools is based on turning in an application including the school’s signature practices that are directly related to the success of their students, a review of the application, and a site visit to confirm the submitted practices.
Applications are reviewed for completeness by teams of educators chosen by the CDE. Complete applications move forward as a state nominee. Each state nominee receives a site visit to confirm the submitted practices.
Selected schools are recognized at an awards ceremony where Jack O’Connell presents each school with a 2009 California Distinguished School plaque and flag. The event is funded by donations and corporate sponsors, such as the Disneyland Resort.
Schools recognized are leaders in academic achievement and leaders in helping all students succeed. Each school is personally called by Jack O’Connell. O’Connell states “Each principal I spoke to was excited and overjoyed at their recognition for this prestigious award. All of our Distinguished Schools awardees are incredible schools with dedicated teachers, hard-working principals, and successful students.”
The selected schools represent about 10.9 percent of California’s 2,400 middle and high schools. Of those schools, only 341 schools have met the criteria based on student achievement from 170 school districts in 46 counties.
The 2009 Distinguished Schools awards will be held Friday, May 29, 2009 at the Disneyland Hotel in Anaheim. Among schools honored are Sacramento County schools: Elk Grove High School, Delta High School, CK McClatchy High School, John F. Kennedy High School, Bella Vista High School, Casa Roble Fundamental High School, Louis Pasteur Fundamental Middle School, and Westside Prepatory Charter Middle School.
For more information about the CSRP, including a list of schools eligible and sponsors, please visit www.cde.ca.gov/ta/sr/cs/.

Measure A Tax Reduction for Senior Citizens

Good news for those 65 and older! Between April 15th and June 30th of this year, senior citizens and disable citizens within the Elk Grove Unified School District can apply for a 70% reduction in their Measure A assessment. Measure A, approved first in 1987, is a local property tax that funds improvement in schools. The lower rates also apply to apartments and mobile homes. Even if you’re renting, your landlord must pass on the savings to you!
The 1987 Measure A helped to improve every school in the district, including building new structures, funding programs, and buying new playground equipment. It accounted for 7% of the cost of building new schools. The Measure A approved in 1998, contributes around 19% to the cost of new schools. The rest is funded with state funds and developer fees. This measure also helps to modernize schools over 25 years old.
If you or someone you know qualifies for the Measure A tax reduction, you must apply directly with the school district. You must reapply every year by phone, mail, or in person.
To receive an application, contact Marcia Grambusch at 9510 Elk Grove-Florin Rd, Room 206, Elk Grove, CA 95624, call (916)686-7562, or email schooltax@egusd.net.

NAR Internet Rental Scam

We previously alerted renters to the Nigerian internet (Craigslist) scam. Well, they have a new one. The name of the National Association of Realtors (NAR) is being used as a part of the new scam.
Prospective renters are led to believe that NAR is functioning as an intermediary to receive rental deposits.
Be wary if any landlord wants you to send the deposit out of the country via Western Union. In this case, they requested deposits be sent to the NAR in the United Kingdom, and stated that NAR would deliver keys to the property.
The National Association of Realtors does not have an escrow service, nor do they function as an intermediary to receive rental deposits.
Consumers beware! The internet is very convenient, but if the offer sounds too good to be true, it most likely is.

Should you make repairs to your home before selling it?

This housing market is very competitive. Some cleaning, elbow grease, and a little paint can help your house sell faster. A few years ago, houses were selling like crazy with no improvements needed. Now, supply of homes is higher than demand for them, allowing buyers to be choosy and selective in what they want. Now, I’m not saying to install granite countertops and custom cabinetry. Some repairs are unnecessary, but others will help your home sell faster with less out of your own pocket.
First of all, clean up. Just cleaning your house gives a better impression to your potential buyers. Clean light fixtures, and replace any burnt out or broken bulbs. Clean your windows, Swiffer the floors, replace broken outlet covers. CLEAN, CLEAN, CLEAN! Fix any squeaks or creaks. Do any of your doors stick? Grab some WD-40 and a screw driver and fix it! Doors that don’t open, stick, or squeak can be quite annoying to some potential buyers. While it may not seem too difficult to fix, buyers will view it as a problem.
You should also touch up your walls. Grab a little paint and a little paintbrush and start touching up little scuff marks on the walls. Any holes? Slap on some putty and touch up the paint. If your walls require full interior paint, stick to neutral colors. There’s no bigger deterrent to a buyer than bright blue or neon pink walls. On the same note, keep décor tasteful. Some décor may be offensive or distasteful to the potential buyer. As much as you may love your hunting trophies, keep the deer heads off of the wall for showings.
Have you been thinking of replacing those shriveling shrubs in your yard? There is no better time. Your yard is the first thing potential buyers will see, and you want it make a good impression. Trim overgrown shrubs or trees, plant some flowers, keep your lawn cut and trimmed, and make sure your yard is projecting the impression you want.
After your yard, the next thing they will see is your front door. Cracked and peeling paint on front door may give a negative impression. So, pick up some paint and paint your front door.
Keep your home free of clutter. Buyers have high expectations, and expect the home to show like a model. So, start packing. Clean out your closets, and clear out the clutter. Give them what they want.
In addition to cleaning the rest of your house, make your bathroom sparkle. Clean the mirrors, scrub the toilets, scrub the tub, and mop the floor. Re-caulk around the baths and toilets to prevent leaks.
These few things could easily increase the value of your home in this competitive market. Should you have any other questions about how to increase the value of your home, talk to a REALTOR.

Just In From My Real Estate Expert...

Just in from my real estate mortgage expert, Tammy Costas of Advent Mortgage…

Making Home Affordable

Homeowners were lent a hand this week by the Obama Administration's newest effort to help families remain in their homes. The 'Making Home Affordable' program was created to help as many as 9 million homeowners who want to stay in their homes, but are struggling with their finances.
As with most legislation of this type, some of the details are still pending and subject to further clarification – but I would invite you to call me so we can begin to discuss how they might benefit you.
There are two important elements of this program:
One part of the program will be available to 4 to 5 million homeowners who have a solid payment history on an existing home loan owned by Fannie Mae or Freddie Mac. Many of these homeowners have been unable to refi and take advantage of lower interest rates because their homes have lost value. This plan allows for rate and term refis up to a 105% loan-to-value, which will help many homeowners take advantage of today's lower rates or refinance an adjustable-rate home loan into a more stable product, such as a 30-year fixed rate loan.
To qualify, the home must be your primary residence and have a loan balance not exceeding $729,750. While there are still a few unknowns in the mix, this program will help a large number of homeowners cut their monthly expenses and benefit from the lower home loan rates available today.
The second part of the program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly home loan payments. This program lets home loan servicers modify eligible loans for those who have experienced financial hardship. The plan is designed to help these at-risk borrowers decrease the payment amount on their existing loan.
Help Is Here
The housing and job markets continue to be hard hit by the contraction in the economy. But combined with earlier measures, such as the $8,000 tax credit for first time home buyers, the Making Home Affordable program may actually have some legs to help the housing market and economy overall.
Regardless of which opportunity may be right for you – the best first move is to pick up the phone and let's start talking.

Tammy Costas
Broker / President
Advent Mortgage
972-529-2178
tcostas@adventamerica.com

Great Opportunity for Home Buyers...

The Federal Government just approved a First Time Home Buyer Tax Credit. This tax credit is available for homes purchased on or after January 1, 2009 through December 1, 2009. The tax credit is 10% of the home’s purchase price, up to a maximum of $8,000. You must be a first time home buyer, and your income must be below $75,000 for a single taxpayer, up to $150,000 for married couples. If the yearly income is higher, taxpayers still may be eligible for some assistance.

This tax credit does not need to be repaid, (unlike the 2008 tax credit, that needed to be repaid). The $8,000 tax credit is refundable. The homebuyer credit can be claimed even if the taxpayer has little or no federal income tax liability. The tax credit is dollar for dollar reduction in what the taxpayer owes. As an example, if the taxpayer owed $3000 in federal taxes before the tax credit, the taxpayer would get a check back for $5000 from the federal government.

If you are eligible for this tax credit, you do not have to wait until the end of the year to benefit from this program. Prospective home buyers can adjust their withholding up the amount of the credit. Increasing his/her take home pay.


California State Tax Credit for purchase of New Homes. This allows for a state tax credit up to $10,000. This credit applies to new California houses and condos bought as primary residences between March 1, 2009 and March 1, 2010. The credit is based on 5% of the purchase price or $10,000, whichever is lower. The owner must live in the home for a minimum of 2 years. The credit is taken in the year of the purchase, and the two following years (for max credit, it would be $3,333 off buyer’s state taxes each year). The state tax break is limited to $100 million, about $10,000 dwellings.

If you are a first time homebuyer, and purchasing a new home, these 2 credits can be combined for a total credit of $18,000.

With interest rates down around 5%, purchase prices low, and great tax benefits, how can you afford not to make that home purchase?

Why We Celebrate Valentine's Day

It’s that time of year again, when everyone rushes to buy candy, flowers, and expensive jewelry to show their loved ones how loved they are. A Hallmark holiday. At one point in time, when the actual history was remembered, it was not so much what it is today. Why are they called “valentines?” Why do we buy candy, cards, and flowers? Let’s take a look at the reason why we celebrate February 14th.
In 270 AD in Rome, Roman Emperor Claudius II prohibited his soldiers from marrying due to the fact that married men had emotional ties to their families, and therefore would not make suitable soldiers. Noticing the injustice of the Emperor’s decree, Saint Valentine began marrying the forbidden couples in secret. He became known as the “friend of lovers.”
It did not take long for the emperor to discover the actions of the bishop, and Saint Valentine was arrested and thrown into prison. While in prison, the couples that had been married by the bishop visited and brought with them candy, cards, and flowers to show how grateful they were. While in prison, Saint Valentine fell in love with his jailor’s daughter. Emperor Claudius II sentenced Saint Valentine to execution, and the date was set.
On the day of his execution, Saint Valentine requested a paper and pen, and wrote a letter to his love. He signed the love letter “Your Valentine.” Saint Valentine was executed on February 14th in 270 AD. The use of the term “valentine” has carried on, and February 14th is a day to be thankful for the love in our lives. Every year, we honor Saint Valentine and all of his efforts to bring love into the world.
There is a beautiful love story behind the origin of Valentine’s Day, and that part of it should be what is celebrated. So let’s buy our candy, cards, and flowers, and gather with our “valentines” to celebrate another Valentine’s Day!

Homeowner's Tax Review

Did you receive one in the mail? The document states that this is the “2009 Property Tax Reduction Form.” For processing you need to return it by 02/11/09 with $95.00. I just received another one today, “Property Tax Reassessment.” They charge $179.00, and it increases to $209.00 after February 27th, 2009. Unfortunately, the filing period is not open until July 2nd 2009-November 30, 2009. You can file yourself for no charge.

During the filing period, property owners can file assessment appeals. For this, you will need to fill out an “application for changed assessment,” along with supporting information of current market value. I would be happy to supply homeowners with current market value information.

I suggest homeowners wait until May or June to put the application together and submit it themselves to the Sacramento Assessor’s Office. www.sccob.saccounty.net. Check out the links to assessment appeals and decline in market value(prop 8).

I will be blogging about this more when we get closer to the filing period. For now, save your money.

It's Time for Superbowl!

Superbowl XLIII is this Sunday, February 1, 2009 at 3 pm pacific time. This year’s matchup will feature the AFC champs, the Pittsburgh Steelers, against the NFC champs, the Arizona Cardinals. This should be an exciting matchup. The underdogs, the Arizona Cardinals, will be going to the Superbowl for the first time. The Pittsburgh Steelers are no strangers to Superbowl, and are going for their sixth Superbowl win. A sixth win would place them in sole possession of the record for most Superbowl wins.
If you’re not into football, do not despair. There are always great commercials to watch. Make sure you pickup your 3D glasses for the Monsters vs. Aliens spot. Sobe is sponsoring this, so they are available at your local supermarket. Just ask. So gather your friends, grab the hot wings and a beer, and settle in for an exciting matchup this Sunday. Are you ready for some football?!
Speaking of hot wings, here’s a great recipe for your Superbowl party, courtesy of Raley’s and Bel Air Markets.

Mudslinger Hot Wings

Ingredients
3 lbs. party wings
Lawrys Garlic Salt, chili powder, cayenne
pepper and black pepper
10 jalapeño peppers, stemmed,
seeded and quartered
6 serrano peppers, stemmed,
seeded and quartered
1 small red chili pepper, stemmed,
seeded and quartered
1 (14-oz.) can chicken broth
1 cup Worcestershire sauce
1 cup Sriracha Hot Pepper Sauce (in our Asian
foods section)
1/2 cup red wine vinegar
1/4 cup Franks Red Hot Sauce
1/4 cup cayenne pepper
1 tbsp. salt
1 tbsp. pepper
Vegetable oil for frying

Directions
Prep time: 30 minutes, Stand and marinate time: overnight Cook time: 8 to 10 minutes Rinse wings and pat dry; place in a single layer on a large baking sheet. Sprinkle lightly with garlic salt, chili powder, cayenne and black pepper; let stand for 30 minutes, then place in a large resealable plastic bag. Puree remaining ingredients except oil in a blender until smooth. Pour about 2/3 of the mixture over chicken; seal bag and marinate overnight in the refrigerator. Cover and refrigerate remaining sauce. Heat oil to 350°F. Remove wings from sauce and discard bag. Cook in hot oil for 8 to 10 minutes, turning once or twice. Remove with a slotted spoon and drain well on several layers of paper towels. Place reserved sauce in a small saucepan and cook until mixture just comes to a boil. Pour desired amount of sauce over wings and toss well to coat. Serve with blue cheese dip and celery sticks, or toss with crumbled blue cheese, if you like. Makes 12 to 16 servings. Note: Any extra sauce would be great over ribs, steaks or roasts.

Nutritional Information:
Nutrition per serving (201 g, based on 14): 480 calories, 26 g protein, 38 g total fat (7 g sat., 0 g trans), 10 g carbohydrate, 1 g fiber, 6 g sugar, 80 mg cholesterol, 1410 mg sodium, 13 points

Shopping List:
3 lbs. party wings, Lawrys Garlic Salt, chili powder, cayenne pepper, black pepper, 10 jalapeño peppers, 6 serrano peppers, 1 small red chili pepper, 1 (14- oz.) can chicken broth, 1 cup Worcestershire sauce, 1 cup Sriracha Hot Pepper Sauce, 1/2 cup red wine vinegar, 1/4 cup Franks Red Hot Sauce, 1/4 cup cayenne pepper, salt, pepper, Vegetable oil
http://raleys.com/www/apps/recipes/print.jsp?contentid=1081134&recipeid=1081134

Bank Owned Properties

The bank owned properties have finally brought the buyers back out. There are many good investments for the first time homebuyer, the move-up buyer, and the investors. With median home prices down to $177,000, home purchases make sense to all. Homebuyers that want the most house for their buck, need to look further than the perfect home they have envisioned.
The properties that are ready to move in are in the greatest demand, which means lots of competition. Multiple offers are common place, which pushes values above original asking price. These are still great values, but if you are willing to fix up cosmetic issues, you can realize even more equity in your home. Carpet, linoleum, appliances, paint, and landscaping can all be replaced very easily at minimal cost. A lot of these fix-ups can be done with a trip to your local home supply store. Look for a nice floor plan, solid structure, and in the neighborhood that meets your needs. The rest can be fixed to meet your own personal tastes.
The bank owned properties that sit on the market more than 30 days have other advantages. The seller is ready to negotiate. The buyer can request that the seller pay up to 3% of the purchase price towards the buyer’s closing costs(up to 2% if the buyer is an investor). The buyer can also request a credit towards pest repairs and cosmetic repairs(within lender guidelines).
The banks do not usually perform repairs to the property, this includes pest repairs. So a credit at close of escrow gives the buyer the money for fix-up at close of escrow. With values and interest rates at an all-time low, if you can buy now, do it!
There is talk that the real estate market may be recovering later this year. NOW is the time to buy!

Are Gas Prices Going Up?

Say it ain’t so! The fear of every automobile owner (except for those of you driving those Yarises and Priuses!) could be coming true. Just last year, gasoline prices peaked at around $4.70 a gallon for regular unleaded. Thankfully, they have decreased considerably, and the average is around $2.00 a gallon now. Contrary to what most believe, higher prices on everyday goods do not necessarily mean an increase in gas prices. Take for example, gas is $2.00 a gallon, yet Orowheat bread is still $4.89 a loaf! For this reason, we can assume that the prices of gas do not directly correlate with the state of the economy overall. Actually, one reason lies on the other side of the world. The conflict between Israel and Hamas in Gaza has the potential to disrupt supplies in the Middle East, keeping prices from falling further. So, we can thank this for gas prices beginning to creep back up. Since last year, crude oil prices have plummeted over 70 percent (NY Times). Consumers are not the only ones taking advantage of the low prices either. The Energy Department is planning to buy 12 million barrels to replenish the emergency supply in salt caverns near the Gulf of Mexico, that were depleted after Hurricane Katrina. The radio said today that gas prices are going to rise within the next two weeks, so we can assume that everyone rushed to the gas station right after hearing that and filled up. There is an upside to higher gas prices though: with less people driving, it’s good for the environment. We can’t necessarily disagree with something that is good for the environment, right? That’s right. There are plenty of other things good for the environment that don’t involve us riding down I-5 to work on a bicycle.