Chico Buyers

Chico Home Buyers Get Off The Fence and Into the Real Estate Market

June 27th, 2008 categories: Chico Buyers, Chico CA Real Estate Market Stats, Chico CA Real Estate News

by Mike Wiegert

On a national level, existing home sales increased in May as buyers are reacting to lower home prices according to the National Association of Realtors (NAR). May figures indicate 4.99 million existing home units sold, up two percent from April’s sales of 4.89 million sold units. This number is still a far cry from May 2007 sales at 5.93 million units. The reason for the latest increase in national home sales was summed up by NAR President Richard F. Gaylor, “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he said. “Today’s buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth.”

NAR Chief economist, Lawrence Yun, indicated last week that there is a significant inventory of homes. “The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down,” he said. “Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets. Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.”

So what do the statistics mean to homebuyers in the Butte County area? At 472 active residential listings in the Chico area market, our local inventory is significantly lower than the national average per capita.

With an urban area population of 106,000 residents, the number of available homes compared to the number of residents is substantially less than most cities across the nation. In a nutshell, although the Chico real estate market is a “buyer’s market”, a less than generous selection of listings in our area diminishes the possibility of buyers coercing sellers into accepting cut-rate offers.

Local homeowners have indisputably seen their home prices drop over the past year. With a median sales price of $308,750 in June 2007 compared to $272,000 in June of 2008, year over year statistics appear to indicate almost a 12 percent decrease in median home prices sold for our area. And with the subsequent losses of equities following these price drops, many sellers are not in the position to accept bargain prices on homes that they owe more on than these proposed offers. I can’t really count the numbers of sellers who have expressed an unwillingness to go out of pocket to sell their homes. Instead, they are bunkering down and waiting for the market and prices to stabilize. Is this a good or bad strategy? You’ve heard it before, “real estate is a long term investment.” For many, it might be prudent to wait out bad times. For others that need to sell to relocate, hopefully many redeeming real estate opportunities exist in their new location.

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Authored by Sandi Bauman | Discussion: 1 Comment »

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FHA Announces Changes to Lending Guidelines Effective July 14, 2008!!

June 16th, 2008 categories: Chico Buyers, Chico CA Real Estate News, Chico Financing

by Ken Phillips

For the first time in history, FHA will begin using borrowers credit scores to determine risk based pricing and mortgage insurance premiums.

Up until now credit scores were not really a factor used in FHA risked based pricing. With FHA relaxing some of their strict requirements recently it was easier to qualify buyers with credit scores low enough to prevent them from qualifying for “conventional” financing. As a matter of fact, with 100% financing a thing of the past basically, FHA financing has become very popular among lenders looking for high loan-to-value loans as FHA financing, which can cover up to 97.75% of the purchase price if a buyer is paying their own closing costs on a purchase, still carries low interest rates compared to high loan-to value conventional financing. FHA is a great loan for first time Chico home buyers with little money to put down and/or with low credit scores that prevent them from qualifying for a conventional loan. On July 14, 2008 FHA will begin implementing these changes and it will affect qualifying for many of borrowers.

Here’s a look at the ten major changes to the FHA guidelines:

1. Borrowers with either no score or at least a 500 score may get an LTV >90%.
2. Borrowers with a score less than 500 get a maximum LTV of 90%.
3. Borrowers without scores will require manual underwriting. What this means is no automated underwriting is available i.e. DU, LP, or DO and will require more time to give the realtors/agents a TRUE pre-approval letter.
4. Upfront Mortgage Insurance Premiums will range from 1.25% to 2.25%, depending on score. These upfront MI premiums will still be allowed to financed into the loan.
5. The Monthly Mortgage Insurance will range from .50% to .55% depending on the borrower’s credit score.
6. The premium is based on the borrower with the lowest score.
7. If one of the borrowers has no score, then the Non-Traditional credit grade is used. Non traditional credit is having trade or credit lines added to the borrowers credit report and obtaining a credit rating. These non-traditional trade/credit lines can be utility bills such as water, cable, electric, gas, phone, etc., cellular phone service, and rental history to name a few.
8. Credit rescoring is allowed to improve a borrower’s credit score. There are fees associated with credit rescoring and each bureau charges fees for each tradeline disputed.
9. All FHA Secure refinances >95% LTV with delinquencies have a 2.25% UFMIP and .55% MMI.
10. Along with purchases, these changes will apply to cash-out, rate & term, and non-delinquent FHA Secure refinances.

Feel free to call Ken 865-769-6420 if you have any questions regarding FHA financing or any of Countrywide’s many loan programs. Or, fill out an application online so that Ken can suggest a loan program tailored for your needs!

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Chico Buyers and Sellers: Is a Lease Option the Right Option?

April 11th, 2008 categories: Chico Buyers, Chico Sellers

by Mike Wiegert

“Mortgage Meltdown” or “current mortgage crisis” are terms we commonly hear these days to describe an astonishing lack of real estate financing options. 100 percent financing, stated income and loans for borrowers with marginal credit, once common two or three years ago are now a thing of the past. In fact, these frivolously used loan programs were largely responsible for the hyperinflation in real estate prices seen during the first five years of the new millennium and the now subsequent alarming rate of foreclosures and short sales. Due to a lack of “easy” financing programs, we’re starting to see some of the creative techniques of home selling once popular in similarly slow real estate markets creeping back into use. One of the most commonly used methods of acquiring real property in times of stringent financing requirements has been the Lease Option Purchase.

A lease option basically means you are leasing or renting a Chico property with an option to buy it at a future date. The future price of the property should be fixed at the time the lease-option is signed.

Usually there is an up-front payment of some amount to purchase the option. The amount can vary. Sometimes the monthly payment is larger than normal and the excess is used to purchase the option. In some cases, the option money can be applied toward the down payment for the later purchase of the home.

The problem with most lease option agreements is that although most buyers using this type of sales agreement actually do intend to purchase or execute the agreement within the stipulated period of time, they rarely end up buying the home. Buyers using the lease option agreement most often do so because they cannot qualify for a home loan. Although they expect their financial issues to change, most of the time they find that they still cannot qualify. The process of qualifying for a mortgage requires a gamut of components, ie., credit, documentable income and savings verification. A would be buyer using the lease option agreement means well, but frequently is unable to resolve adverse credit issues and subsequently is unable to complete the transaction and loses the option money consideration.

BUYER BEWARE: A buyer wishing to enter into a lease option agreement may do so with all good faith. A well written lease option agreement will include a provision whereby upon the onset of the agreement, a Preliminary Title Report is issued by a Chico Title Company disclosing all the known liens, encumbrances and legal claims that may be attached to the property. The best title report in the world isn’t going to reveal that the Seller may be in financial trouble and a foreclosure may be just around the corner. Although the lease option agreement will stipulate that the Seller is to continue to make the monthly payments and taxes and maintain the property insurance, it’s certainly conceivable that a less than honest Seller may elect to accept a buyer’s option money and discontinue paying on the property.

A few months down the road, an unsuspecting buyer may find that the home in Chico is now in foreclosure and after the title reverts to the bank or an auction buyer, they may be faced with an eviction notice.

Of course, the buyer will have legal recourse against the seller but may not have the financial means to proceed against the him. In most cases, the seller will have used the option money deposit to resolve other financial difficulties and not have the resources to remedy a judgement against him. A possible solution to this dilemma, is for the parties to agree to leave the option money in a neutral escrow, until such time that the option is either executed or the lease option agreement is terminated.

Whatever creative proposals are considered, as always, when engaging in a complicated real estate transaction, do so with a trusted real estate professional or attorney who can explain all the ramifications of the sale.

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Real Estate Owned (REO) Property in Chico, CA

April 2nd, 2008 categories: Chico Buyers, Chico CA Foreclosure Listings

Updated: 04/02/2008

Chico (and surrounding areas) Foreclosure Properties Coming Soon!

Want the inside scoop on foreclosure properties not yet listed? The following are scheduled for marketing within the next 30 days:

6705 CO RD 20, Orland

174 Artesia, Chico

852 Lindo Lane, Chico

475 Sacramento, Hamilton City

254 E 15th Street, Chico

2136 Rosedale, Oroville

762 1st Avenue, Chico

CHICO FORECLOSURES

1412 N CHERRY STREET Condos $114,900 2bed 1 bath, 864 sqft, built 1982 (Pending)

2200 NOTRE DAME BLVD Condos $119,900 2 bed 1 bath, 864 sqft, built 1981

269 W Rio Bonito, Biggs SFD $138,000 3 bed, 1.5 bath, 1222 sqft, built 1970

2197 FAIR ST SFD $139,900 1 bed 1 bath, 676 sqft built 1935

1271 E 9TH STREET SFD $160,500 2 bed 1 bath, 1296 sqft, built 1943

2159 SHOSHONEE AVE SFD $174,500 3 bed 2 bath, 1336 sqft, built 1988

2752 KEITH HOPKINS PL SFD, $179,900 3 bed 2 bath, 1221 sqft, built 1997

1527 B Street, Chico SFD $179,900 3 bed 2 bath, 1108 sqft, built 1989

569 WHITE AVE SFD $194,000 3 bed 1 bath, 989 sqft, built 1959

2099 HARTFORD DR SFD $199,900 3 bed 2 bath, 1382 sqft, built 2005

87 KEY WEST LOOP SFD $219,000 3 bed 2 bath, 1126 sqft, built 2006 (Pending)

709 POMONA AVE Duplex ($219,900) 2 bed 1 bath, 1436 sqft, built 1948

8 SUN CIRCLE CT SFD $219,900 3 bed 2 bath, 1160 sqft, built 1986

2701 REVERE LN SFD $225,000 4 bed 2.5 bath, 1516 sqft, built 1994

1276 CALLA LN SFD $227,424 4 bed 1.5 bath, 1746 sqft, built 1963 (Pending)

1081 REY CIR SFD $232,900 4 bed 1.75 bath, 1414 sqft, built 1972 (Pending)

15 GLENSHIRE LN SFD $235,900 4 bed, 1.5 bath, 1305 sqft, built in 1987

747 WATERFORD DR SFD $237,450 3 bed 2 bath, 1374 sqft, built 1980

23 GLENSHIRE LN SFD $239,000 4bed 1.5 bath, 1305 sqft, built 1987 (Pending)

1482 DAYTON RD SFD 2 bed 1 bath, 1001 sqft, built 1990 $249,500

713 WAYNE LN SFD $265,500 4 bed 2 bath, 1525 sqft, built 1956

3106 GRAPE WAY SFD $268,090 3 bed 2 bath, 1820 sqft, built 1935

4330 KEITH LN SFD $269,000 3 bed 1.5 bath, 1392 sqft, built 1976 (Pending)

2718 CEANOTHUS AVE $279,900 3 bed 3 bath, 2060 sqft, built 2006

100 BENSON TERR SFD $279,900 3 be, 2 1/2 bath, 1967 sqft, built 2004

1260 RAVENSHOE WAY SFD $287,000 4 bed 2.5 bath, 1532 sqft, built 1997 (Pending)

2 WINDMILL CT SFD $289,000 3 bed 2 bath, 1573 sqft, built 1980 (Pending)

2631 SAN JOSE ST SFD $289,900 4 bed 3 bath, 2135 sqft, built 1960

25 BUNKER CT SFD $299,900 3 bed 2 bath, 1801 sqft, built 2003 (Pending)

13200 HAMILTON NORD SFD $325,000 3 bed 2 bath, 1888 sqft, built 1976

1134 11TH AVENUE SFD $335,300 3 bed 2 bath, 1853 sqft, built in 2004

305 MESA VERDE COURT SFD $347,624 4 bed 3 bath, 2325 sqft, built 2005 (Pending)

832 JACOBS CT SFD $359,900 3 bed 2 bath, 1760 sqft, built 1999

3006 TOP HAND CT SFD $379,900 3 bed 2.5 bath, 2336 sqft, built 1980

2721 ESCALLONIA WY SFD $439,000 4 bed 3 bath, 2435 sqft, built 2001

454 BROOKSIDE DRIVE SFD $498,000 3 bed 3 bath, 2811 sqft, built 1993

3517 SHADOWTREE LN SFD $549,000 3 bed 3 bath, 3240 sqft, built 2004

10696 PLAYER LN SFD $649,900 3 bed 3 bath, 3342 sqft, built 2005 (Pending)

2766 ALAMO AVE SFD $695,000 4 bed 3 bath, 3600 sqft, built 1996

LOS MOLINOS FORECLOSURES

24890 KELLIE WAY SFD $199,900 3 bed 2 bath, 1252 sqft, built 1968

MAGALIA FORECLOSURES

13996 JARVIS CIR MFD $89,000 3 bed 2 bath, 1536 sqft, built 1976

13721 ENDICOT CIR MFD $129,500 2 beds 2 baths, 1616 sqft, built 1979

14549 CARNEGIE RD SFD $159,000 3 beds 2 baths, 1486 sqft, built 1992

13695 ANDOVER DR SFD $168,900 3 bed 1 bath, 1564 sqft, built 1982

14569 ASHEVILLE DR SFD $169,900 2 bed 2.25 bath, 1738 sqft, built 1981 (Pending)

13980 CASCADE DR SFD $172,500 3 bed 1.75 bath, 1080 sqft, built 1980

6560 HURON CT SFD $209,900 2 bed 2 bath, 1260 sqft, built 1980

14560 CARNEGIE RD SFD $212,900 2 bed 2 bath, 1751 sqft, built 1979

14569 ASHEVILLE DR SFD $219,900 2 bed 2.25 bath, 1738 sqft, built 1981

15220 SKYWAY SFD $225,000 3 bed 2 bath, 1696 sqft, built 1979

14658 BRIDGEPORT CIR SFD $261,250 3 bed 2 bath, 1903 sqft, built 2005

ORLAND FORECLOSURES

801 PECAN ST SFD $145,000, 3 bed 1.5 bath, 1080 sqft, built 1986

1311 FAIRVIEW ST SFD $145,500 3 bed 1 bath, 1000 sqft, built 1993

802 DATE ST SFD $149,900 3 bed 2 bath, 1080 sqft, 1988

803 PECAN CIR SFD $152,900 3 bed 2 bath, 1080 sqft, built 1986

1309 FAIRVIEW ST SFD $169,000 3 bed 1.5 bath, 1080 sqft, built 1993

802 DATE ST SFD $169,900 3 bed 2 bath, 1080 sqft, built 1988

611 WOODWARD AVE SFD $190,000 3 bed 2 bath, 1402 sqft, built 1948 (Pending)

778 JACQUELYN DRIVE SFD $249,900 3 bed 2.5 bath, 1773 sqft, built 2006

120 THIRD STREET SFD $259,000 3 bed 2 bath, 2063 sqft, built 2005

6202 CO RD 15 SFD $299,900 3 bed 2.5 bath, 2300 sqft, built 1977 (Pending)

OROVILLE FORECLOSURES

2364 A STREET SFD $69,900 2 bed 1 bath, 864 sqft, built 1935 (Pending)

881 POMONA Ave SFD $78,900 2 bed 1 bath, 988 sqft, built 1921 (Pending)

2985 ELGIN ST SFD $78,500 1 bed 1 bath, 444 sqft, built 1964

2765 ORO BANGOR HWY SFD $84,900 3bed, 1bath, 1008 sqft, built in 1987

292 APACHE CIR SFD $91,080 2 bed 2 bath, 1440 sqft, built 1976

29 ROSITA WAY SFD $98,000 3 bed 1 bath, 960 sqft, built 1963 (Pending)

2151 OROVILLE BANGOR Duplex! $99,900 built 1954

1080 TEHAMA AVE SFD $104,900 1 bed 1 bath, 912 sqft, built 1949

118 NELSON AVE SFD $109,990 3 bed 2 bath, 1552 sqft, built1965

2126 GRAY ST SFD $120,900 3 bed 2 bath, 1080 sqft, built 1992

3451 ORO BANGOR HWY SFD $134,900 3 bed 1 bath, 1266 sqft, built 1950

1020 BUTTE AVE SFD $139,900 2 bed 1 bath, 1030 sqft, built 1959

1604 SWEEM ST SFD $149,000 4 bed 2 bath, 1597 sqft, built 1960

1687 LETA LN SFD $152,600 2 bed 2 bath, 1038 sqft, built 1978

220 CANYON DR SFD $149,900 4 bed 2 bath, 1894 sqft, built 1954

18 WESTWOOD WAY SFD $158,900 3 bed 2 bath, 1152 Sqft, built 1979

853 HARLAN AVE SFD $159,900 3 bed 1 bath, 1088 sqft, built 1951

3081 ORANGE AVE SFD $161,000 3 bed 2 bath, 1443 sqft, built in 1954

1445 7TH AVENUE SFD $173,000 2 bed 1 bath, 1228 sqft, built 1925

11 GLEN CIR SFD $178,900 3 bed 2 bath, 1936 sqft, built 1963

37 SELF LN SFD $184,000 2 bed 1 bath, 1240 sqft, built 1982 (Pending)

21 LA CRESENTA DR $189,900 3 bed 2 bath, 1338 sqft, built 1951

3131 TRES VIAS RD $199,900 3 bed 2 bath, 1787 sqft, built 1968

30 RIDGE LINE CT SFD $204,900 2 bed 2 bath, 1381 sqft, built 1990

105 ANTLER DRIVE $221,900 4 bed 2 bath, 1687 sqft, built 2005 (Pending)

17 LA FORET DR SFD $259,900 3bed 3 bath, 2344 sqft, built 1983

3615 HILDALE AVE SFD $277,200 3 bed 2 bath, 1778 sqft, built 1961

2680 HWY 70 SFD $339,900 2 bed 2 bath, 1836 sqft, built 1981

PARADISE FORECLOSURES

6221 CLARK RD SFD $99,900 1 bed 1bath, 1182 sqft, built 1955 (Pending)

1835 DRENDEL CIR SFD $114,900 4 bed 1 bath (Pending)

6338 DIAMOND AVE SFD $129,900 2 bed 1 bath, 1147 sqft, built 1949 (Pending)

1537 SYLVAN WAY SFD $130,000 2 bed 1 bath, 1056 sqft, built 1954 (Pending)

5371 SAWMILL RD SFD $139,000 2bed 1 bath, 1014 sqft, built 1950 (Pending)

5757 HOLLY LN SFD $139,900 1bed 1 bath + den, 1080 sqft, built 1948

6340 TABERNACLE LN SFD $139,900 2 bed 2 bath, 1058 sqft, built 1949 (Pending)

5571 KEITH LN SFD $144,900 2 bed 1 bath, 904 sqft, built 1940

6399 LUCKY JOHN RD SFD $144,900 2 bed 1 bath, 1065 sqft, built 1948 (Pending)

463 VALLEY VIEW DR SFD $138,000 2 bed 2 bath, 1020 sqft, built 1947 (Pending)

1115 NUNNELEY SFD $150,900 3 bed 2 bath, 1626 sqft, built 1950

1462 ELLIOTT RD SFD $158,900 2 bed 1 bath, 1064 sqft, built 1954 (Pending)

1481 MAGGIES LN SFD $159,900 2 bed 1.5 bath, 996 sqft, built 1980

6893 LUNAR LN SFD $164,900 2 bed 1.5 bath, 988 sqft, built 1970

6104 OLIVER RD SFD $169,900 2 bed 1 bath, 1054 sqft, built 1950 (Pending)

1363 PEARSON RD SFD $177,900 3 bed 1 bath, 1056 sqft, built 1988 (Pending)

5575 SIERRA PARK DR SFD $190,000 3 bed 2 bath, 1420 sqft, built 1948

5811 PERRY MASON LN SFD $195,000 2 bed 1.5 bath, 1799 sqft, built 1956

490 WILLS LN SFD $199,900 3 bed 2 bath, 1505 sqft, built 1976 (Pending)

616 CIRCLEWOOD DR SFD $209,000 2 bed 2 bath, 1520 sqft, built 1979

5892 COPELAND RD SFD $225,000 3bed 2 bath, 1715 sqft, built 1966

1658 JARAMILLO SFD $239,000 2 bed 2 bath, 1530 sqft, built 2006

1752 WHITAKER RD SFD $239,900 3 bed 1.5 bath, 1435 sqft, built 1962 (Pending)

1635 ALEXIS LN SFD $262,000 6bed 3 bath, 2977 sqft, built 1981

6165 SAWMILL RD SFD $269,900 4 bed 2 1/2 bath, 1936 sqft, built 1979

1246 ELLIOTT RD SFD $345,000 4 bed 3 bath, 2236 sqft, built 1960

3366 HAMLIN CANYON CT SFD $ 384,900 4 bed 3 bath, 2548 sqft built 1992 (Pending)

3591 SUNVIEW RD SFD $389,900 3 bed 2.5 bath, 2107 sqft, built 2002

WILLOWS FORECLOSURES

319 N SHASTA STREET SFD $85,000 2 bed 1 bath, 703 sqft, built 1950 (Pending)

1052 ELM ST SFD $121,900 2 bed 1 bath, 958 sqft, built 1970 (Pending)

651 GLENNWOOD LN SFD $125,000 3 bed 2 bath, 1354 sqft, built 1979 (Pending)

430 W ASH ST SFD $145,000 3 bed 1 bath, 1535 sqft, built 1910

833 W SYCAMORE ST SFD $149,500 3 bed 1 bath, 1100 sqft, built 1915

695 E WOOD ST SFD $145,000 3 bed 2 bath, 1200 sqft, built 1940 (Pending)

1271 E 9TH STREET SFD $168,500 2 bed 1 bath, 1296 sqft, built in 1943

612 GLENNWOOD LN SFD $174,900 3 bed 2 bath, 1100 sqft, built 1972

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Do you need more information on any of these properties? Call your local Chico REO expert, Sandi Bauman. 530-864-5407.

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Chico Bank Owned Properties- Search Here!

April 1st, 2008 categories: Chico Buyers, Chico CA Foreclosure Listings

Chico CA Foreclosure Listings!

Welcome to the most comprehensive, up-to-date list of Chico CA foreclosure properties available for sale on the MLS.

Chico **(and surrounding areas) Foreclosure Properties Coming Soon!**