National Stabilization Program(NSP) Round 2

Santa Clara County has quietly become an example of a initiative to revitalize it’s housing market by injecting a twenty five million dollar grant into its neighborhoods. NSP2 dollars have been awarded by the Department of Housing and Urban Development (HUD) under the American Recovery and Reinvestment Act (ARRA) to targeted cities in an effort to fight blight in specific neighborhoods that could stall the housing recovery.

The second round follows on the heels of a first round that was rewarded last year and has since expired. The management of the funds is handled by the Housing Trust of Santa Clara County.

How NSP2 will be used in Santa Clara County

NSP2 will be used to provide up to 100 Purchase Assistance Loans to low and moderate income households buying foreclosed and abandoned properties within the designated area. Acquire and rehabilitate up to 105 bank- owned homes for resale to low and moderate income households. Twenty-five percent of the grant total ($6,250,000) will be reserved to assist households at or below 50 percent of area median income.

Target Areas in Santa Clara County

NSP2 dollars must be used in targeted census areas.

Download area map to see if you are buying in a neighborhood that is benefiting from NSP2.

Census Tracts-Council Districts

What are the requirements?

Click Player to see video

Sales activity lighter than 2009

Santana Row area neighborhoods continue to show lower activity after the homebuyer tax credit expired in April. Buyers continue to pay list price on homes sold in these neighborhoods but the activity has been half of 2009 levels. In 2009 there were 114 sales compared to 54 in May – July 2010.

Conventional is king

Conventional sales were the predominant financing method used to purchase homes following the same pattern of 2009. FHA continues to be in the least used or accepted financing method by sellers when reviewing offers. Buyers should consider conventional loan products to increase their chances of getting an accepted offer.

Median rises in 2010

2010 median sales prices was $610,000 compared to $533,500 in 2010. Buyers also had more negotiating power in 2009 to 97% of original list. 2010 buyers are having to pay slightly more to 102% of original list making it 5% more expensive to buy a home in these neighborhoods.

This blog post is meant to be more of a confession instead of  your usual market update. It’s meant to be my re-commitment to providing news, views, and market information after a two month hiatus.

What did I do and where was I?

Good question, the best way to describe it is that we all go through our own valleys and mine was mostly focused on the business at hand and accomplishing some personal and physical goals. Blogging has been a joy but it does come with it’s challenges. To meet those challenges I spent time climbing Half Dome, reading, and praying.

Written Values

Perhaps the most challenging for me is consistency. Consistency comes from committing to my values. I know what my values are and I live my values every day. Until now the one thing I didn’t have was a list of written values and here is a compressed version of  my list. (Still is and will always be a work in progress)

Why am I sharing this?

Ben Franklin had a written list of values from an early age and look at his impact on this country. You see I love my career in the real estate industry but it will mean nothing to me if I can’t look back and know that I made a difference in someones life.

We live in a “i” society and as such I choose to forgo doing the popular things and instead doing the things that are right.  It was during my recent trip into the Yosemite back country that I really felt I was going down the right path spiritually, emotionally, physically, as a father, and in my business.

The higher you climb in life and push through those challenges the more you are rewarded.

Book Recommendation: The 10 Natural Laws of Successful Time and Life Management – Proven Strategies for Increased Inner Peace – Hyrum W. Smith

January 2010 sales data for Santa Clara County.

10 day approval? Yes that’s what I said and for those homeowners lucky enough to have a Wachovia loan( aka World Savings) a short sale approval is possible within a few weeks time. Wachovia is able to do this mainly because they own the loans vs having to service them for investors.

What makes this more incredible is that each county has a short sale negotiator who is proactive in the approval process.  Wachovia makes its decisions on a case by case hardship a homeowner is facing. The goal is to offer a fast track process to the homeowner once it has been determined that all other options have been exhausted including the possibility of a loan modification.

Requirements for a Wachovia Short Sale Approval

1. Homeowner must have a true hardship (loss of income, job loss, medical, family, etc….). Provide required documentation to support your hardship. Taxes, bank statements, and pay stubs must be submitted to the negotiator.
2. Communication  is key! Most homeowners in this situation are embarrassed at the possibility of facing foreclosure that they stop answering the phone or opening mail. You must be willing to communicate with the lender to help yourself with this situation.
3. Work with a REALTOR who knows how the Wachovia process works. This will help the homeowner reach a timely agreement with Wachovia and help facilitate an open channel of communication with the short sale negotiator.

Wachovia’s short sale fast track is incredibly fast in comparison to the other banks and servicers who can take up to 90 days to approve a short sale. Talk to a Loss Mitigation Representative  to find out more and to explore your options.

(866) 642-8608

8:00 am-5:30 pm Monday-Thursday 8:30 am-4:00 pm Friday.

Real Estate Relationships are Key in a Hot Market

Buyers experiencing a HOT market in our area continue to deal with one frustration after another as they wage a bidding war on the low inventory we are currently experiencing.

Within all of this chaos I have developed a relationship building approach both as a listing agent and with other listing agents. I have to know that the other REALTOR is willing to work as hard as I am prior to reviewing or submitting an offer.

For example; say you want to make an offer and there are multiple offers involved. The strategy I tend to take is to make sure I package the offer in such a way that the listing agent can see that I understand the way a Bank Asset manager or a Short Sale Negotiator prefers to see an offer.

The key is to understand the inner workings of the submission process to a Bank and as such covey to the decision maker that I am well versed in this process. Its not surprising to have a listing agent pass on a offer because of the way it was presented.

I have had more success by focusing on how I have package an offer and communicated with the other agent.

San Jose's Premere Jazz Festival this weekend

Its been a yearly tradition and the Jazz Festival arrives this weekend. For those of you who have not attended its well worth the trip out to one of San Jose’s Iconic events. I have personally experienced the joy of the many stages of this grand festival my favorite being the Latin Jazz stage. Among the most popular stages you will find are the main stage in Cesar Chavez Park and the HOT HOT HOT Salsa stage. The festival begins tomorrow Friday August 7th -9th. Weekend passes are available. Hope to see you out there.

San Jose Jazz Fest Website: Click Here

NAR May 2009 Existing Homes Sales Data

NAR report credits interest rates, $8,000 tax credit, affordability, and distressed properties for the increased sales but the fuel for this fire is coming more from the lack of affordable homes causing a flurry of multiple offer activity on the sparse inventory in our area.

Read NAR report: REPORT