By Don Dunning | November 13, 2009
Recently my buyers closed escrow on their home purchase with a 4.5% loan. Another couple to whom I just sold their first home are thrilled to have locked in a 4.625% mortgage. Meanwhile, if they had owned the home a few years and were looking for a Home Equity Line of Credit (HELOC), they would […]
Read MoreBy Don Dunning | October 25, 2009
A recent study has indicated that homeowners who are “upside down” in their mortgages are more likely to default in “non-recourse” states. This means the lender cannot go after the borrower’s personal assets if he stops making payments. California is one of these non-recourse states. Here, a loan to buy an owner-occupied property of one […]
Read MoreBy Don Dunning | October 18, 2009
In my October 11th blog post, I reported California Association of Realtors (C.A.R.) chief economist, Leslie Appleton-Young’s, comments and predictions about the real estate market. Here are a few more interesting items, with graphs from her presentation: Sellers have a variety of reasons for selling. According to C.A.R. surveys, in 2006 75% of buyers were […]
Read MoreBy Don Dunning | October 16, 2009
As of October 11th, there are seven new California laws relating to real estate mortgages. Among them: SB 36: Those who engage in mortgage loan origination will need to have a special license from either the CA Department of Corporations or the Department of Real Estate, after meeting specified requirements. Comment — Part of our […]
Read MoreBy Don Dunning | October 11, 2009
Got back yesterday from California Association of Realtors (C.A.R) meetings in San Jose. Highlight of our fall get-together is the presentation of C.A.R.’s chief economist, Leslie Appleton-Young. Here are some tidbits; Median home price in CA was $594,500 in May 2007. In February 2009, it was $245,200, down 59% Comparing August 2008 to August 2009, […]
Read MoreBy Don Dunning | September 26, 2009
According to a recent article, “Feds Plan to Tinker with Mortgage Interest Reporting,” the IRS needs more information to determine who is and is not cheating on their mortgage interest deduction. Currently, the IRS is having difficulty determining, for example, if the interest being deducted on a home-equity loan is correct. Under the present system, […]
Read MoreBy Don Dunning | September 20, 2009
Not long ago, an acquaintance approached me about the possibility of listing his property that was many months behind in payments and was worth, in my opinion, about $125,000 less than he paid not that many years ago. Understanding he had numerous choices, each with potential positive and negative financial and legal consequences, I suggested […]
Read MoreBy Don Dunning | August 21, 2009
Before you know it, I will be doing posts about how higher rates are our new reality and what buyers and sellers should do about it. The information is out there – rates are low now, but this cannot last. Read this article about Ben Bernake’s upcoming challenges, “Bernake’s Tough Task: Withdrawing Emergency Aid.” Go […]
Read MoreBy Don Dunning | August 13, 2009
Some stories make it appear that real estate, especially in the Bay Area, is rebounding. Others talk about what is going wrong. Where does that leave you as a buyer or seller needing to make important decisions? I just read “Silicon Valley Real Estate: the Bidding War is Back” in the San Jose Mercury News, […]
Read MoreBy Don Dunning | August 10, 2009
“We learn from history that we learn nothing from history.”
– George Bernard Shaw.
After 30 years in real estate, I have witnessed this wisdom, especially in how home buyers function.
Today’s market is a great opportunity for some to find tremendous values and to finance them with near-record low interest rates. It is also a time when others are repeating mistakes made by buyers in the not-so-long-ago seller’s market. Purchasers need to learn quickly or risk years of regret and potentially significant financial losses.
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