Giving irst Time Home Buyers a Chance

November 30, 2009

According to an article in the Wall Street Journal on November 25, Fannie Mae has announced a program aims at helping ordinary home buyers compete with investors on foreclosed homes.

Buyers have been very frustrated in their attempts to purchase bank-owned properties. It is quite common for their to be multiple offers and the ordinary buyer who will be purchasing with a loan has a difficult time competing with the investors who will be paying all cash.

Called "First Look", Fannie plans to consider offers only from potential owner-occupants and certain public-housing entities during the first 15 days in which a foreclosed property is on the market.

It will be interesting to see if this program actually results in properties being sold to these so-called ordinary buyers who are just wanting a home in which to live. Fannie says that nationwide it had 72,275 single family homes on its books. Investors have had a clear edge since they can close quickly and no appraisal is required. Ordinary home buyers who purchase using a loan need the appraisal to come in at the selling price. When there is a bidding situation, often the bank is wary about the potential of an appraisal coming in under the selling price, thus an investor-buyer is often more attractive to a seller. Can the "First Look" program overcome this issue?

Fannie Mae has also said that offers might be able to be renegotiated after the appraisal and that in stead of requiring a 30 day closing, buyers would now be given 45 days.

Hopefully the buyers wanting to purchase a home now because of the favorable interest rates, the attractive prices and the possibility of a tax credit will only have to compete with each other during the first 15 days of a bank-owned listing.

The Holiday Season Is Upon Us

November 27, 2009

Finish up this Thanksgiving weekend at the sixth annual Apple Butter Festival at Riley's at Los Rios Rancho on Oak Glen Road. Turning aging apples into apple butter has historically been the way to preserve apples for the winter. Admission to the ranch is free but there are fees for some activities. Saturday evening there will be an old fashioned hoedown with music by Riley's Mountaineer Band.

Winterfest is a family event that held at Arlington Park in Riverside on Saturday. Families who bring a canned good will receive a free ticket for a raffle drawing. The usual fun attractions will include pony rides, a petting zoo, a train and jumpers. There will also be a coloring corner where participants will receive a bear prize when they color a sheet. The hours are 3-8 p.m. Saturday. The park is located at 3860 Van Buren Blvd. in Riverside.

And, of course, today begins the 17th annual Festival of Lights on Main Street in Riverside. At 6:15 p. m. this evening, the lights will be turned on. Downtown Riverside will be illuminated with more than three and a half million lights and fireworks. There will be an outdoor skating on a rink located on Main Street between University and Mission Avenues. Hours this weekend are Friday, 4-11 p.m.; Saturday, noon until 11 p.m. and Sunday, noon until 10 p.m. One hour of skating is $10 and skate rental is $3. Downtown Riverside and the Mission Inn become a holiday wonderland.

And for car buffs, there are car shows everywhere. Start your Saturday morning with Taco Joe's Highland Breakfast Cruise and Toy Drive, 9 a.m. until noon. Taco Joe's Mexican Restaurant is located at 26659 Highland Avenue in Highland. For details call 909-874-0846 or 909-841-0717.

The Weather Outside is Lovely

November 26, 2009


It is a beautiful day for gathering family and friends to pause and count our blessings. While 2009 has been a challenging year for many of us, these challenges have offered opportunities for reassessment of what is important. The anonymous Thanksgiving observation that I posted yesterday will be the grace I shall use as family and friends sit down to share the Thanksgiving turkey. I hope that we can all find the positives in our lives and focus on them.


The weather outside is lovely; our mountains are stunning; and the economy is beginning to show green sprouts.


Let's give thanks.

"Count Your Blessings..."

November 25, 2009

I found this Thanksgiving Observance on the Internet attributed to an unknown author. It seemed appropriate for the year 2009. I am happy to share it with you.

"Count your blessings instead of your crosses;

Count your gains instead of your losses.

Count your joys instead of your woes; Count your friends instead of your foes.

Count your smiles instead of your tears;

Count your courage instead of your fears.

Count your full years instead of your lean;

Count your kind deeds instead of your mean.

Count your health instead of your wealth;

Count on God instead of yourself."

Rent Versus Buy ?

November 24, 2009

The large headline and the colored map of the United States filled approximately one quarter of the front page of the Wall Street Journal this morning. Perhaps the amount of space allocated to this news story was commensurate with the headline "1 in 4 Borrowers Under Water". Since the mid to late 1980s when the last major downturn in property values occurred, technology and data analysis have created computer programs that come up with this type of statistical data. I do not remember every hearing numbers of folks who were "under water" in 1989. I did personally know that folks were because my son had purchased a home with an FHA loan in 1983 and he owed more than the home was then worth. At that time I counseled him to just hang tight, make his payments and as long as he could afford the payments it would work out. Fortunately it did and even though the home is off its peak value, it is still worth double what he paid in 1983.

What does all this have to do with "rent versus buy"? Those homeowners who now owe more than their homes are worth are, in my humble opinion, "renters" - at least for the time being.

They are "renting" from their lenders and depending on the type of loan that they have, they may or may not be contributing to the reduction in the amount of the loan. Again, as long as they can afford the payments, they have a place to live that presumably was desirable when they made the purchase.

Lenders are struggling with how to make modifications and one lender is quoted in the Wall Street Journal article as saying that they will not be able to do refinances or loan modifications until the appraisals are irrelevant.

If folks can find a place to rent at a much lower monthly payment, it is difficult to convince them to not walk away from their mortgage debt. If banks find a way to lower mortgage payments, perhaps more homeowners would choose to stay in their homes and make those payments and the tidal wave of foreclosure would subside.

Here is an interesting twist. I read of lenders foreclosing on a home and then renting it back to the resident homeowner. Why? Because the bank is betting that selling the property in the future will garner a larger return than taking a loss on a sale today. Homeowners might also consider that keeping their payments current and waiting will also allow them to regain much of their lost equity - not today, probably not for several years, but if the future resembles the past, the return of value will occur.

Thankfulness - a Daily Ritual

November 23, 2009

The official U.S. holiday of "Thanksgiving" serves as a reminder to all of us that we need to be thankful for all the blessings we receive. Hopefully we are continuously expressing our gratitude for family, friends, health and the nature that surrounds us. With all the hype about "turkey day" and "black Friday", the real meaning for having a "Thanksgiving Day" seems sometimes to be forgotten.

The early settlers who got together were celebrating their survival for a year in a strange environment amongst strangers who looked different and spoke a different language. For the first thanksgiving feast, all were included and all shared what they had.

The sharing is an important element in Century 21 Lois Lauer Realty's preparations for the holidays. Food for the Family Service Association has long been a tradition for our agents. We sponsor the collection of items for the troops for "Operation Gratitude". It is great that we have an official reminder of giving thanks, but perhaps each day we could find someone to thank.

The new motto for many organizations is "Give What You Can". We are thankful that we have something to give.

A Weekend With the Visual Arts

November 20, 2009

Every November, the San Bernardino County Museum Association sponsors the Wild Life Art Festival. It began as an event that featured the winners of the Federal Duck Stamp art competition and has grown to include many nationally recognized wildlife artist who set up booths to show and sell their art.

The Federal Duck Stamp art is totally amazing in the attention to detail that these artists incorporate in their works. There will also be winners of the Junior Duck Stamp art competition.

In past years, this event has required paid admission, but this year the SBC Museum Association has made the event open to public with no admission charge. They are trying the "Give What You Can" approach which they hope will allow many more persons to come and enjoy the event. The festival will be held on the San Bernardino Museum grounds at 2024 Orange Tree Lane. The hours are 9a.m. to 5 p.m. on Saturday and 9 a.m. to 4 p.m. on Sunday. The museum's education division with the help of its Youth Club will present a variety of hands-on art experiences for children. With help from the Ramona-Country Carvers, families can paint a duck or carve a bear out of soap.(You might bring your own bar of Ivory Soap). For more information you can call 909.307.2669 or on the Internet http://www.sbcountymuseum.org/

On Sunday, in downtown Redlands on State Street, the Redlands Art Association is presenting Art on State Street. The Association's gallery will also be open and there will be a reception at 2 p.m. for the opening of the Plein Air Artists show. The gallery is located at 215 E. State Street. For more information you can call 909.792.8435 or on the Internet http://www.redlands-art.org/

On Saturday evening at the Riverside Art Museum there will be an opening reception for the Edenistic Divergence Show. According to the ARTFACTS publication of RAM, "This exhibition is the culmination of the exploration and interpretation of the biblical and mythical "garden of Eden". The reception will be from 7 - 9 p.m.

The Riverside Art Museum is located at 3425 Mission Inn Avenue in Riverside. For more information you can call 951.684.7111 or go to the web site http://www.riversideartmuseum.org/

Is the Inland Empire a Scientific Research Hub?

November 19, 2009

Happily, I am on the weekly newsletter e-mail list of Chancellor Timothy P. White of the University of California, Riverside. His letter is informative and has made me conscious of the tremendous strides that have been taken by the UCR institution since I graduated in 1970.

A recent science symposium held in honor of Chancellor Emeritus Ray Orbach highlighted five distinguished faculty members speaking about prominent research centers that are part of the UCR campus. I will share with you the information that Chancellor White included in his newsletter.

The Center for Conservation Biology took an initial 5-year investment of $277 thousand and within 6 years had a nearly $6 million investment in direct and indirect research expenditures.

Center for Nanoscale Science and Engineering. The center invested in six faculty positions and built a state-of-the-art classroom, generated $60 million in research support and developed new technologies in the way science and engineering are practiced.

Institute for Genome Biology. Faculty grants rose from $10.5 million in 2001-2004 to $49.2 million in 2005-2007. The campus has anew Genome Building for cutting edge research that includes innovative laboratory design.

Center for Invasive Species Research which has allocated $10.4 million in funding for 103 research projects on exotic pests and diseases that threaten our agricultural, natural and urban environments.

Center for Environmental Research and Technology was started with one faculty member and now has 65 graduate and undergraduate students, 35 patents, specialized laboratories and more than $150 million in grants, contracts and gifts. In partnership with the City of Riverside, the Center has created the Southern California Research Initiative for Solar Energy.

These Centers are a bit of a well kept secret. We need to realize how much our area is developing in the arena of cutting edge research. These jobs create tremendous benefits to our economy and we are fortunate that they are an ever growing segment of our job market.