Federal Stimulus Update

On Wednesday the U.S. Senate unanimously adopted an amendment to the tax portion of the stimulus package that would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit, for all purchasers, not just first-time homebuyers, in 2009 for a primary residence. Taxpayers would claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

The House-passed version of the bill continues the current $7,500 credit for first-time homebuyers and eliminates the repayment feature of the credit, but only for purchases that occur between January 1, 2009 and June 30, 2009.

The Senate legislation so far does not include the loan limit increase for FHA and GSEs, but NAR is urging its inclusion. The House-passed bill reinstates and makes permanent last year's temporary FHA and conforming loan limits of $729,750, as sought by NAR. Limits currently are $625,500.

Market Conditions

In Gilroy there are pleanty of houses for sale - still. BUT, there are a lot of properties going into contract! The other but is that the escrows are taking an extraordinary long time because lenders are scrutinizing new loans and borrowers at an unprecedented degree.

There's an odd thing going on, too. Homes owned by banks and other financial institutions are going on the market at really reasonable prices. Once on the market they are receiving multiple offers, and are ultimately going into contract at over list price. We had one buyer offer competing with 22 other offers last week. The winner went in with an over-list-price offer, and raised it even more on counter.

News on the national level includes the National Association of Realtors reporting this week that there have been pending home sale gains in the South and Midwest. The other regions saw slight declines. Here's the complete article.

Back to Gilroy - take a look around. Is there something out there for you? Call Team Patereau to talk about your wants and needs.

Groundhog Day Info

We get confused about seeing shadow and not seeing shadow and what it means. Here's the real scoop:

In traditional weather lore, if a groundhog emerges from its burrow on this day and fails to see its shadow because the weather is cloudy, winter will soon end. If the groundhog sees its
shadow because the weather is bright and clear, it will be frightened and run back into its hole, and the winter will continue for six more weeks.

You can get more info than you want to know here.

Resolve to Get in the Black in 2009

For many Americans, the only area where they may have lost weight over the holidays is their wallet. And as their credit card statements begin to arrive with the reminder—and obligation—of their holiday spending, consumers should resolve now to lower their debt in the New Year.
“Losing weight and losing debt are among the top New Year’s resolutions every year,” says Joseph Montanaro, certified financial planner with USAA, a leading financial services organization serving military members and their families. “But, unfortunately, the resolve of consumers to stick to their plans typically thaws along with the weather when spring rolls around.” His suggestions include:

• Start with a specific goal. Start small, and add incremental goals along the way. Set new goals with each milestone you reach.


• Put the plan on paper. Establish a realistic budget, and stick to it with each paycheck.


• Track progress. Continually tracking progress over time will help keep the overall goal front and center, and allow for budget adjustments as more money is freed up over time.


• Splurge…in moderation. While keeping a focus on reducing debt undoubtedly will require some sacrifice, it’s OK to splurge on a reward for a job well done from time to time.


• Save like there is a tomorrow. Spend less than is earned so there will be money left over to save. With that extra money, consider increasing contributions to a 401(k) or IRA, and start saving more for everyday expenses and emergencies by setting up a monthly automatic transfer into a savings account.

Q & A on New Law

One of our condo clients asked: I’m on the board of my Homeowner’s Association and heard there’s a new law about notifying the HOA of a foreclosure sale on a unit. Is that true?

Yes – it is true. Here’s what CAR (California Association of Realtors) has to say:

Senate Bill 1511, which amended Civil Code Section 2924b, effective January 1, 2009, permits HOAs to record a request that a trustee, or any person authorized to record a notice of default regarding any of the separate interests governed by the HOA, mail to the HOA a copy of a trustee’s deed (on any unit) within 15 business days after recordation of the trustee’s deed.

The request by the HOA must include the legal description or the assessor’s parcel number of the separate interest as well as the name and address of the association and a statement that it is an HOA. The request must be recorded before the filing of a notice of default. Note that failure of the mortgagee/lender/trustee to mail a copy of the trustee’s deed to the HOA does not affect title to the real property.

Starting Over: Real Opportunities in 2009

2008 was one of the toughest, most volatile years our financial systems have ever experienced – but we don't have to tell you that. In some way or another, everyone has felt the effects of this global financial crisis. So, let's skip the painful details. Let's avoid as well the impossible task of trying to predict the end of it, and let's try something different. Let's spend the first month of 2009 looking at solutions to the mortgage and real estate markets – actual viable solutions that you can use right now to help turn things around. If you're a homeowner or looking to be one in 2009, click this link to read the rest of the article. You'll be glad that you did.

By the way, the link leads to a newsletter provided by a great lender, and our niece, Janette Whitlock. She does business in Norfolk, Virginia. If you're in that area and need mortgage assistance, please contact her.

Foreclosure Scam

The San Jose Mercury News reported yesterday about a scam in San Diego having to do with homeowners having financial problems, and to avoid foreclosure they gave money to the scammers to buy "land patents" that would make their homes sovereign nations. The scammers led the distressed homeowners to believe that once their property was not part of the United States, authorities, including agents from their financing companies, could not legally enter their property to foreclose.

Turns out it’s not true. These poor distressed homeowners found cash money to give to the scammers, but it in no way positively affected their condition.

How does this happen?

You tell us.

January is National Soup Month

Butternut/Winter Squash Soup
This delicious, warm soup is low in calories and good for you!

Ingredients
2 1/4 lbs butternut squash
1 cup chopped onions
1 tbs grated fresh ginger
1 tbs butter
4 cups vegetable or chicken broth

Directions
Preheat oven to 450. Cut squash in half lengthwise. Scoop out seeds and place cut side down on a baking sheet. Roast the squash for 40-45 minutes or until it is very tender. Allow squash to cool. While the squash is roasting, sauté the onion and ginger in the butter over medium heat until the onion is translucent and soft. Add the broth, cover and simmer for 10 minutes. Scoop the cooled squash from the skin. Place half the squash and half the broth in a blender. Puree until smooth. Repeat with the other half of the squash and broth. If needed, add water to achieve the desired consistency. Return the soup to the sauce pan and reheat. Salt and pepper to taste. If desired, garnish each serving with a spoonful of sour cream.
Makes 4 servings.

Amount Per Serving: 195 Calories,
Total Fat 4.6g, Total Carbohydrates
34.6g, Dietary Fiber 5.6g, Protein 7.8g

January is a good time to Plant Bulbs

Live for today, but plan for a showy spring. Get outdoors and plant bulbs! It’s an easy and low cost way to add color to your yard this spring. Below is a general list of bulbs which can be planted now; to be sure, check out the links.

Agapanthus
Alstromeria (Peruvian Lily)
Calla
Canna
Eucharis Lily
Eucomis (Pineapple flower)
Gloriosa (Climbing Lily)
Hemerocallis (Day Lily)
Lilium
Lily of the Valley
Nerine (Spider Lily)

Once you have done the work, make a note on your calendar for Spring to take a picture of your garden and send it to us.

Three Ways to Save Energy on Hot Water

1. Heater Jackets: These insulation “jackets” are especially made to fit a hot water heater and are secured with special ties.



2. Pipe Insulation: By wrapping hot water pipes with pipe insulation made for this purpose, you can keep hot water hot longer, and, therefore, save fuel. A big advantage is that hot water will flow at the faucet faster—so there also is some savings on water. There are several styles of pipe insulation available.



3. Lower Thermostats: Keep the water thermostat between 110 to 140 degrees. If you run out of hot water often, the problem isn’t temperature but the small capacity of the heater. You may want to replace it with a larger model.