Yulin Lee, Financial Planner & Author to Hold Lecture Series @ Intero Santana Row for Women

Yulin Lee, a local financial planner, is hosting a 4 part series titled: The Life of Francesca at the Intero Real Estate office at Santana Row starting this Saturday morning. Please email me at mario@interorealestate.com to RSVP.

Mixed Use New Construction Cupertino Home

Brand new mixed use construction, single family home plus separate address professional office suite available for sale in Monta Vista area of Cupertino. Gorgeous property of approximately 1,270 square feet single family home, plus a 500 square foot basement and a 400 square foot separate address office suite. Perfect situation for someone who wants great schools and a highly-professional office space. Offered at $899,900.

Apartment or Condo Land for Sale San Jose

Outstanding land for apartment or condo development in San Jose. 18,775 square foot lot with an existing house of over 1,800 square feet - asking $799,995. Very good Santana Row proximity, amidst other apartment buildings and some newer condo developments. House is currently rented for $3,200 per month. This makes a very good investment hold until the for sale condo market returns. $42 per foot for land is very well priced plus the additional house and income in place. Don't wait on this!

Wells Fargo Wachovia Short Sales San Jose & Beyond

Everybody's favorite and most innovative short sale bank has been Wachovia - now under ownership of Wells Fargo. Wachovia realized that they had a large amount of bad loans in their portfolio and they decided to be proactive about heading off the financial crisis within their bank. While most banks were begrudgingly processing short sales - some as long as 4-6 months - Wachovia put into place a single decision maker per region - Sandra Villalpando is our representative in Silicon Valley - to make decisions within 5-7 business days! The real estate industry loves this - it makes the sale of a Wachovia short sale almost as easy as a "normal" sale. Wachovia short sales then started selling at a very rapid pace. The leaders of Wells Fargo now are adopting the Wachovia model and will roll out their quick short sale approval process - and actually using the Wachovia teams to handle the larger workload. Good job Wells Fargo and brilliant job Wachovia!

FHA & Conventional Loan Rates San Jose

Here is the weekly update from Tony Guaraldi of The Loan Source on FHA and conventional rates in the San Jose marketplace:

Mortgage rates for today are about the same as last Friday. We had some improvements though out the week and then getting slightly worse this morning. Things are still looking amazing historically! With the Fed ending the mortgage security purchase program at the end of the this month this would be a great time to capture a refinance or get into contract to buy a home.

The Jobs Report numbers are in, and the headline numbers were not as bad as expected. The media is spinning this as a good number, Stocks are moving higher and Mortgage Bonds are moving lower. The Jobs Report showed 36,000 jobs lost in February, better than the 68,000 loss that was estimated. The Unemployment Rate remained at 9.7%, as the number of people unemployed remained unchanged at 14.9 Million – this was better than expectations of a rise to 9.8%. Adding to the positive tone of the report were upward revisions to the prior two month's reports showing 35,000 fewer jobs lost. These headline numbers were not so great, but exceeded the low expectations, and avoided a potential disaster that some had feared. Helping the numbers were 15,000 temporary census worker hiring. Without this, actual job losses would have exceeded 50,000 for February.

And a deeper look beyond the headlines of the report showed what many consider to be the Real Unemployment Rate to be at 16.8%, a rise from last month’s 16.5%. This rate of unemployment, which the government calls U6, includes both discouraged workers and those who are working part-time that would rather have full time employment. In fact, a large portion of those accepting part time work are doing so out of necessity, to earn whatever they can. And just last month, another nearly 500,000 people accepted part time work, citing economic reasons for doing so. Overall, the report indicates that the labor market continues to struggle, but has shown improvement from its worst levels.

FHA is still available up to a $729,750 loan amount with 3.5% down payment. There is some talk that the down payment requirements and MI costs may increase in the future, so again it would be wise to jump on FHA with today’s guidelines and pricing. You can still buy a condo with FHA but the whole complex must be FHA approved. Townhomes do not need FHA approval. Below a link to look up local FHA approved condo complexes. I suggest filtering the search by State and then by City. If you have a buyer who must use FHA and they are looking at condos, don’t even bother showing them properties unless they are on this list.

https://entp.hud.gov/idapp/html/condlook.cfm

That’s the update for this week! Have a great weekend!
Tony Guaraldi
Mortgage Consultant
The Loan Source

San Jose Bank Owned Homes

I just did a search of future San Jose Bank Owned Homes based on a 5 mile radius scan of Notice of Trustee Sales. The parameters were, 5 mile radius of my office at Intero Santana Row and NTS within a 60 day period. The return was 775 homes scheduled for trustee sale in the next two months. Of course, many of these will be postponed due to short sale offers, bankruptcy filings and mutual agreements with lender & borrower to work through loan modification, etc. This is a very large number given the comparison to the approx 3,500 homes on the market in Santa Clara County. An additional 20% REO or short sale inventory will have a significant impact on pricing. Banks are being cautious not to flood the market. Although, some banks may decide to sell their inventory first at perhaps higher prices than waiting it out.

Shopping Center Note for Sale Silicon Valley

There are some very good investments available outside of the obvious REO deals. In fact, most of the commercial REO investment properties sell at close to fair market value - some even exceed that price point. We are working closely with some banks to bring the better investments to the table. For various reasons (cash reserve issues, publicity, flooding the market, etc) banks are hesitant to foreclose on their bad commercial loans. The solution is a sale of the note/deed of trust to an investor at a discount. This then allows the investor to foreclose or deed in lieu the real property. One deal that we are reviewing is fully occupied and almost a 10 cap rate for an excellent building. We are also looking for investors to pair with these offerings.

Santana Row Villas For Sale

There are a couple Villas for sale in Santana Row. These are very special units - only 21 of them were built. Located in the building directly across from Hotel Valencia. Most of the 21 are approximately 2,300 square foot, 3 story, 3 bedroom, 3.5 bath homes. The most recent sale in the complex was just over $1,500,000 for a home facing away from Santana Row. The better located homes and the ones with more balconies will sell for significantly higher prices. We've seen 1 or 2 homes sell per year in this building, mostly using private marketing efforts. Call for our list of homes that may be available.

Wonderful Home for Sale near Santana Row

Open House Saturday and Sunday, Feb. 27 & 28th, 1-4pm

Downtown San Diego Condos for under $300k?

My San Diego Intero partner just took a great Bank Owned listing in a newer high-rise in downtown San Diego. 2 bedrooms, 2 baths, with spectacular views for $299,000! These same units were selling for over $800,000 just 3 years ago. Let me know if you would consider a great pied-a-terre just a short Southwest flight away!

Bank Owned Commercial Condo at the gates of Silver Creek Valley Country Club

Purchase Defaulting Bank Notes & Concurrent Short Sale

One very effective strategy for commercial property distress purchases is the purchase of a defaulting note at a discount paired with a concurrent short sale approval. Instead of approaching the property seller for a short sale purchase, then presenting to the bank for a short sale approval. A concurrent workout is best. If the seller wants out and the bank would consider an offer on it's distressed note, then an offer to the bank and seller will wrap up everything concisely. This is better than just buying the note and then being in limbo for the borrower to either completely default, cure or for you to start foreclosure procedures. At close of escrow, you now own the property outright.

Bank Owned Strength in Santana Row Condo

Just closed Friday, January 22, 2010 - a bank owned listing in the Margo building of Santana Row. This unit faces Santana Row, approximately across from Burberry. It was listed at $435,000 and closed with multiple offers at $470,000. This was the smallest of three models with one bedroom, den and 1.5 baths at 1,099 square feet. This sale affirms prices are stabilizing on Santana Row. Other units in the same floor plan have closed far lower in the $400s this year. There is one more bank owned unit available for sale in the DeForest building as well as some short sales that are in progress.

90 Day Flip Rule for FHA financing eased

The FHA regulation restricting FHA financing on homes that were "flipped" within the last 90 days has been mostly eliminated. Please read the FHA statement effective January 15, 2010. This will allow investors to buy homes through foreclosure, fix them up and sell them within as soon as possible - typically this process takes less than 90 days. There are still restrictions in place if the subsequent sales price is 20% higher than the acquisition price. That then requires additional lender review, a property inspection and market data justification of the new value. This seems fair - although still a bit "big brotherish".

Gilroy Short Sale Single Family Home $335,000!

4 year old, almost 1,500 square foot single family home, 3 bedrooms, 2.5 baths, large space dedicated to the master bedroom (including walk in closet, separate shower and soaking tub, double sinks), bright throughout the home - all in a wonderful complex with community pool, park and kid's play area. This home just went on the market and will sell quickly. Perfect newer home opportunity in Gilroy.

First Time Home Buyer Workshop January 21, 2010

Our next Intero First Time Home Buyer Workshop is on Thursday, January 21, 2010 from 6:00-7:30pm. Located at Intero, 10275 N De Anza Blvd, Cupertino.

Home Purchase Process Step by Step
Pros and Cons of Bank Owned and Short Sale Properties
New Tax Credits from Federal Government
Credit Scoring Explained
Mortgage Options Currently Available
* Jumbo loans to $2,000,000
* Conforming loans with 5% down
* FHA with 3.5% down
* Min Credit Score 620
Title and Escrow
Tax Benefits of Owning a Home

Please RSVP as soon as possible - this workshop fills up.

Mario Pinedo
415-269-6249
mario@interorealestate.com

Santana Row Short Sale and Bank Owned Listings

The DeForest building has two, almost side by side homes for sale that are excellent values. Facing west, are two units both 1099 square feet, 1 bedroom plus den, 1.5 bath units. The bank REO is listed for $439,000 - there are already two offers on this home after less than a week on the market. The short sale two doors down, is listed for $399,000 and is also generating good activity. These units were selling for over $700,000 just a few years ago. Great time to get a home on one of the most coveted streets in the valley.

Cupertino New Construction Single Home & Professional Office

City Heights Downtown San Jose View Condo Short Sale DEAL

Must find buyer for this great deal in a very nice building in downtown San Jose. $365,000 (or less) for a large 2 bedroom, 2 bath, view condo. Rents are strong in the area if you want this for an investment. Another short sale in the same building sold with multiple offers last week. Call me to review the numbers and the possibilities. Perfect for a owner-occupant too.

Santana Row Bank REO Loft Condo $435,000

1099 square foot two story loft in DeForest Building now bank owned. These units sold for over $700,000 less than two years ago. Excellent quiet location on the rear top floors facing West. Just came on the market. Make a move to Santana Row while the few short sale and REO properties are available.