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Many discounts for homeowners:                                                                                                                  

Package discounts available save as much as 25% off homeowners insurance and 15% off auto insurance when both are insured with Fidelity.

• Newly purchased home
• Home and Auto Package Discount
• Married
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• Accredited Builder Discount
• Gated Community
• Senior Credit
• Alarm Credit

Easy for you!

• Same day quote and issue
• Fast response for escrow closes
• Very competitive prices
• No money down for escrow closes, can bill to escrow.

Comprehensive Insurance Protection:

• A competitive homeowners policy covers more types of losses than the standard industry coverage*

* Based on HO5 policy vs. typical HO3 policy

Call Jay Ristic at (916) 549-6563

or e-mail ristic@risticinsurance.com

www.risticinsurance.com

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Hello Fellow Real Estate Professionals,

Yvonne here from Fidelity National Home Warranty and I wanted to pass to all of you  news of a national recall of specific modelMaytag refrigerator’s.

Please review and pass to your own clients as a great information piece that is affecting 1.6 million consumers.

Some of your clients will be very glad you did.

As always, I want you to remember me not only as your Fidelity National Home Warranty representative, but as your true partner in the Real Estate industry. Count on me to always take care of your clients and all of their home warranty needs (always insist on a Fidelity National Home Warranty to protect your clients and their new property), but also count on me to provide valuable Real Estate industry information.

Thank You,

Yvonne Nelson  

Fidelity National Home Warranty

yvonne.nelson@fnf.com

800-308-1424 ext 3518

*******************************************         

Maytag Recalls 1.6 Million Fire-Prone Refrigerators
Massive recall includes Maytag, Jenn-Air, Amana, Admiral, Magic Chef, Performa by Maytag and Crosley brands
By Truman Lewis
ConsumerAffairs.com
March 10, 2009
Maytag has announced a massive recall of 1.6 million fire-prone refrigerators. The recall includes Maytag, Jenn-Air, Amana, Admiral, Magic Chef, Performa by Maytag and Crosley brand refrigerators.

The company said that an electrical failure in the relay, the component that turns on the refrigerator’s compressor, can cause overheating and pose a serious fire hazard. Maytag has received 41 reports of refrigerator relay ignition, including 16 reports of property damage ranging from smoke damage to extensive kitchen damage.

The recall includes certain Maytag, Jenn-Air, Amana, Admiral, Magic Chef, Performa by Maytag and Crosley brand side by side and top freezer refrigerators .

The recall follows complaints by consumers like Christopher of Castaic, Calif.”I was awakened this evening to the smell of electrical smoke. I traced it to the motor of my fridge,” he told ConsumerAffairs.com last month.

Kim of Sandy, Utah, had a similar experience. “Our Maytag side by side refrigerator model no. MSD2756AE started to smoke out of the control panel in the door for the ice and water dispenser. I took the control panel so I could unplug it to stop the smoking,” Kim said in a December 2008 complaint. “The solenoid was so hot it melted all the surrounding plastic to a point it was dripping. We were very lucky to be home when this started so it did not start a fire or cause more damage.”

“I contacted our local Maytag repair shop and the technicain said there were no recalls and this sort of thing happens all the time with refrigerators,” Kim said.

The problem is hardly a new one. Consumers have been complaining about it for years. In November 2008, Phyllis of Wendell, Mass., reported her Maytag refrigerator had caught fire. “Thick yellow/brown smoke (was) billowing from refrigerator. After getting it outside and cooled down, saw that controls in back top of refrigerator unit had totally melted,” she said.

Model numbers
The affected refrigerators were manufactured in black, bisque, white and stainless steel. They have model and serial numbers printed on a label located on the top middle or left upper side of the refrigerator liner and have the following model and serial number combinations:

        Serial Numbers ENDING with      AND Model Numbers BEGINNING with       
Side by Side
Refrigerators   AA, AC, AE, AG, AJ, AL, AN, AP, AR,
AT, AV, AX, CA, CC, CE, CG, CJ, CL,
ZB, ZD, ZF, ZH, ZK, ZM, ZQ, ZS, ZU,
ZW, ZY, ZZ      ARS, CS, JC, JS, MS, MZ, PS    
Top Freezer
Refrigerators   AA, AC, AE, AG, AJ, AL, AN, AP, AR,
AT, AV, AX, ZK, ZM, ZQ, ZS, ZU, ZW,
ZY, ZZ  AT, CT, MT, PT 

Refrigerators with freezers on the bottom are not included in this recall.
The refrigerators were sold at department and appliance stores and by homebuilders nationwide from January 2001 through January 2004 for between about $350 and $1600. They were made in the United States.

Consumers should immediately contact Maytag to determine if their refrigerator is included in the recall and to schedule a free in-home repair. Consumers should not return the refrigerator to the retailer where it was purchased.

For more information, contact Maytag toll-free at (866) 533-9817 anytime, or visit the firm’s Web site at www.repair.maytag.com

The recall is being conducted in cooperation with the U.S. Consumer Product Safety Commission (CPSC

For the week of March 16, 2009
 
Welcome to the Market Matters Advisory, your weekly guide to responding to the market.
 
No Job?  Can’t Refinance?  How to Talk to Your Bank
As unemployment rises in many states, more homeowners are finding it difficult to pay their mortgage each month.  Although most unemployed homeowners do not qualify for refinancing, as they do not meet the minimum qualifying requirements such as proof of income, there are steps they can take to improve their chances of a successful refinance.

MAKING SENSE OF THE STORY FOR CONSUMERS
 
·      The first, and probably most important step in the refinance process, is to find out which company services the loan.  The loan servicer may or not may not be the company where the mortgage payment is sent each month.  This step is crucial, because the loan servicer is generally the one that can modify the loan.  If the loan servicer is not able to provide assistance, the owner of the mortgage may be able to help.
 
·      Once a homeowner realizes he or she may no longer be able to pay the mortgage, the homeowner should contact the “loss mitigation department” of the lender.  The “loss mitigation department” is where the refinance and/or loan modification process begins.
 
·      After discussing options with the loss mitigation department, homeowners should write a forbearance letter, also known as a postponement of payment letter.  This letter is sent to the servicer or lender and details the homeowner’s current financial situation and hardship.
 
·      Many government agencies and nonprofit organizations provide free services to homeowners and will serve as an intermediary between the lender/servicer and the homeowner.  Some companies charge fees for the same services.  Housing analysts caution homeowners to conduct research and due diligence prior to paying a company for loan modification and/or refinance assistance.

Real Estate Market Update:
Have home prices bottomed out?

The latest housing data indicate home prices may be stabilizing, although butterflies over the economy could keep many potential homebuyers on the sidelines.

Home prices are closer to stabilizing today than at any time in the past nine years.
Based on the latest data, median selling prices for new and existing homes combined now equal 2.9 times median household incomes, nationwide. This is exactly the ratio that prevailed during the halcyon days of the 1980s, when sales and construction of housing were booming.
 
Three years ago, just before the housing bubble burst, this ratio was 4.5 times incomes.
Add in the fact that interest rates are much lower today than they were two decades ago and housing is even more affordable.

 
State housing agencies get caught in credit crunch
State housing-finance agencies operated by state governments that cater to first-time home buyers are curtailing their programs, while others such as the California Housing Finance Agency (CalHFA) have suspended their mortgage programs altogether.

MAKING SENSE OF THE STORY FOR CONSUMERS
 
·      Each state has a housing-finance agency, which either originates mortgage loans to state residents or guarantees loans made by lenders.  As a result of the credit crunch and other economic factors, many housing finance agencies have lost funding.
 
·      State housing finance agencies cater to moderate- and low-income borrowers; however, the borrower must have good credit and stable income to qualify for most state housing finance agency mortgages.  Default rates and foreclosures on housing finance agency loans are low compared with loans originated by traditional financial institutions.
 
·      To provide low cost loans with favorable interest rates to first-time home buyers, most state housing finance agencies sell a mix of tax-exempt and taxable bonds to investors.  The proceeds from the sales are then used to fund mortgages.  Typically, state housing finance agencies offer mortgage rates between 0.5 percent and 1 percent less than commercial lenders.
 
·      President Obama has pledged to work with Fannie Mae and Freddie Mac to support the state housing finance agencies, but has not provided any further details.
 
·      In some neighborhoods, many homes on the same street may be listed for sale.  Sometimes home buyers become wary of purchasing a home in these neighborhoods, as they may think that something is wrong with the area.  Homeowners in this situation are advised to “sell the whole neighborhood” and not just their own house.  Including relevant information in a brochure, such as an active community social calendar, friendly neighbors, and details about the nearby school district, may help to alleviate home buyers’ concerns.
 
·      Staging a home can help a house stand out from others in the neighborhood.  This can include cleaning and decluttering a home, removing family photos, or stylizing a home with up-to-date designs.  Some homeowners also may benefit from hiring a professional staging company.  Fees for home stagers vary according to the level of service needed.  Initial consultations, which generally include recommendations, can cost between $100 and $400, or even FREE.
 
According to studies done in 2007 and 2008 and released last month by the Real Estate Staging Association, a trade group, staging in a down market has a significant effect on the speed of sales. In the 2008 study, which looked at 60 properties, occupied homes that sat on the market unstaged an average of 57 days were then taken off the market, gussied up and relisted. On average, six days later, they sold — the difference amounting to 89 percent less time on the market. Of the 100 analyzed properties in 2007, when real estate was still selling briskly, it took a staged home 44 days to sell, versus 106 days for an unstaged home — or 46.6 percent less time.
 

Mortgage News:

This week’s C.A.R. Mortgage Update contains information about the effect of a reduction in the mortgage interest deduction and refinancing.
 
Obama’s plan to limit write-offs provokes push-back
The Obama administration’s first budget proposal included a provision to reduce the mortgage interest and local property tax deductions for those earning more than $250,000.
 
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the National Association of REALTORS® (NAR) are strongly opposed to this provision and are working to convince lawmakers to oppose it as well.

Although the government predicts it could save billions of dollars by reducing the deductions, it also will negatively impact the California housing market; further erode opportunities for homeownership in the state; and will contribute to further price declines and diminished equity for homeowners. 
 
Additionally, the devaluation would extend to lower- and middle-income homeowners and home buyers, who likely will start “pricing in” the lower tax benefits – discounting what they are willing to pay for a house given lower future deductions,” according to the Mortgage Bankers Association and NAR.
 
A waiting game for refinancing
Many mortgage professionals are advising clients not to wait to refinance.  Stricter loan underwriting standards and declining property values could result in some homeowners becoming ineligible for the Obama administration’s “Making Home Affordable Refinance” program.  As a result, many mortgage professionals are advising clients not to wait to refinance.
 
Refinances also are taking longer to complete.  Whereas a refinance used to take three to four weeks to process, it now is taking as long as six weeks.

For the week of March 16, 2009
 
Welcome to the Market Matters Advisory, your weekly guide to responding to the market.
 
No Job?  Can’t Refinance?  How to Talk to Your Bank
As unemployment rises in many states, more homeowners are finding it difficult to pay their mortgage each month.  Although most unemployed homeowners do not qualify for refinancing, as they do not meet the minimum qualifying requirements such as proof of income, there are steps they can take to improve their chances of a successful refinance.

MAKING SENSE OF THE STORY FOR CONSUMERS
 
·      The first, and probably most important step in the refinance process, is to find out which company services the loan.  The loan servicer may or not may not be the company where the mortgage payment is sent each month.  This step is crucial, because the loan servicer is generally the one that can modify the loan.  If the loan servicer is not able to provide assistance, the owner of the mortgage may be able to help.
 
·      Once a homeowner realizes he or she may no longer be able to pay the mortgage, the homeowner should contact the “loss mitigation department” of the lender.  The “loss mitigation department” is where the refinance and/or loan modification process begins.
 
·      After discussing options with the loss mitigation department, homeowners should write a forbearance letter, also known as a postponement of payment letter.  This letter is sent to the servicer or lender and details the homeowner’s current financial situation and hardship.
 
·      Many government agencies and nonprofit organizations provide free services to homeowners and will serve as an intermediary between the lender/servicer and the homeowner.  Some companies charge fees for the same services.  Housing analysts caution homeowners to conduct research and due diligence prior to paying a company for loan modification and/or refinance assistance.
 
Real Estate Market Update:
Have home prices bottomed out?

The latest housing data indicate home prices may be stabilizing, although butterflies over the economy could keep many potential homebuyers on the sidelines.

Home prices are closer to stabilizing today than at any time in the past nine years.
Based on the latest data, median selling prices for new and existing homes combined now equal 2.9 times median household incomes, nationwide. This is exactly the ratio that prevailed during the halcyon days of the 1980s, when sales and construction of housing were booming.
 
Three years ago, just before the housing bubble burst, this ratio was 4.5 times incomes.
Add in the fact that interest rates are much lower today than they were two decades ago and housing is even more affordable.

 
State housing agencies get caught in credit crunch
State housing-finance agencies operated by state governments that cater to first-time home buyers are curtailing their programs, while others such as the California Housing Finance Agency (CalHFA) have suspended their mortgage programs altogether.

MAKING SENSE OF THE STORY FOR CONSUMERS
 
·      Each state has a housing-finance agency, which either originates mortgage loans to state residents or guarantees loans made by lenders.  As a result of the credit crunch and other economic factors, many housing finance agencies have lost funding.
 
·      State housing finance agencies cater to moderate- and low-income borrowers; however, the borrower must have good credit and stable income to qualify for most state housing finance agency mortgages.  Default rates and foreclosures on housing finance agency loans are low compared with loans originated by traditional financial institutions.
 
·      To provide low cost loans with favorable interest rates to first-time home buyers, most state housing finance agencies sell a mix of tax-exempt and taxable bonds to investors.  The proceeds from the sales are then used to fund mortgages.  Typically, state housing finance agencies offer mortgage rates between 0.5 percent and 1 percent less than commercial lenders.
 
·      President Obama has pledged to work with Fannie Mae and Freddie Mac to support the state housing finance agencies, but has not provided any further details.
 
·      In some neighborhoods, many homes on the same street may be listed for sale.  Sometimes home buyers become wary of purchasing a home in these neighborhoods, as they may think that something is wrong with the area.  Homeowners in this situation are advised to “sell the whole neighborhood” and not just their own house.  Including relevant information in a brochure, such as an active community social calendar, friendly neighbors, and details about the nearby school district, may help to alleviate home buyers’ concerns.
 
·      Staging a home can help a house stand out from others in the neighborhood.  This can include cleaning and decluttering a home, removing family photos, or stylizing a home with up-to-date designs.  Some homeowners also may benefit from hiring a professional staging company.  Fees for home stagers vary according to the level of service needed.  Initial consultations, which generally include recommendations, can cost between $100 and $400, or even FREE.
 
According to studies done in 2007 and 2008 and released last month by the Real Estate Staging Association, a trade group, staging in a down market has a significant effect on the speed of sales. In the 2008 study, which looked at 60 properties, occupied homes that sat on the market unstaged an average of 57 days were then taken off the market, gussied up and relisted. On average, six days later, they sold — the difference amounting to 89 percent less time on the market. Of the 100 analyzed properties in 2007, when real estate was still selling briskly, it took a staged home 44 days to sell, versus 106 days for an unstaged home — or 46.6 percent less time.
 

Mortgage News:

This week’s C.A.R. Mortgage Update contains information about the effect of a reduction in the mortgage interest deduction and refinancing.
 
Obama’s plan to limit write-offs provokes push-back
The Obama administration’s first budget proposal included a provision to reduce the mortgage interest and local property tax deductions for those earning more than $250,000.
 
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the National Association of REALTORS® (NAR) are strongly opposed to this provision and are working to convince lawmakers to oppose it as well.

Although the government predicts it could save billions of dollars by reducing the deductions, it also will negatively impact the California housing market; further erode opportunities for homeownership in the state; and will contribute to further price declines and diminished equity for homeowners. 
 
Additionally, the devaluation would extend to lower- and middle-income homeowners and home buyers, who likely will start “pricing in” the lower tax benefits – discounting what they are willing to pay for a house given lower future deductions,” according to the Mortgage Bankers Association and NAR.
 
A waiting game for refinancing
Many mortgage professionals are advising clients not to wait to refinance.  Stricter loan underwriting standards and declining property values could result in some homeowners becoming ineligible for the Obama administration’s “Making Home Affordable Refinance” program.  As a result, many mortgage professionals are advising clients not to wait to refinance.
 
Refinances also are taking longer to complete.  Whereas a refinance used to take three to four weeks to process, it now is taking as long as six weeks.

Sales of existing detached homes hit bottom in the last quarter of 2007, and have since gradually climbed back. Following two years of steep declines exceeding 20 percent, annual sales in the California housing market are expected to increase 12 percent to 395,600 in sales in 2008, with a further 12.5 percent increase projected in 2009. The increase in sales is largely attributed to the growth in the absorption of distressed properties with huge mark-downs in prices.

Home prices have shown significant and unprecedented downward movement over the past year. The pile-up in foreclosures, real-estate owned properties (REOs), and short sales will continue to put downward pressure on home prices until mortgage problems begin to subside in the second half of 2009. The market will continue to experience large year-to-year decreases in the coming months, and the statewide median price is expected to decline 31.7 percent to $381,000 for 2008, the first decline since 1996.  The price will further decline by 6.0 percent in 2009 to $358,000.

This year’s State of the California Housing Market report examines the developments in the housing market and real estate finance over the past year, places recent events into a historical context, and looks ahead to 2009. The annual report also provides detailed statistics on consumer demographics, data on home buying and selling behaviors, analyses on current housing market conditions, and insights on the direction of the market.
 

Key Findings

·     The steep decline in price largely resulted from the increase in the share of distressed sales across the state. According to the annual survey results, one-third of all home sales were distressed sales, with a 2 to 1 ratio between REOs and short sales.

·     Many home sellers sold their properties at a loss, as the increase in repair costs/price adjustments cut into their equity gains. The number of sellers who sold their home with a loss almost doubled from 11.9 percent in 2007 to a record-setting 22.2 percent in 2008. This was well above 1.9 percent in 2006, and was almost triple the long-term average of 7.7 percent.

·     Home buyers took advantage of falling home prices and buying bigger houses at a lower price per square foot compared to previous year. The size of a typical home bought in 2008 was 1,700 square feet, compared to 1,600 square feet in 2007. Buyers paid $267 per square foot for a typical home in 2008, as compared to $336 in 2007. The median price per square foot declined for the second year in a row since peaking in 2006, and was the lowest since 2003.

·      FHA and VA loans have become widely used as a result of the changing environment in the financial market. FHA loans as a first mortgage accounted for just one percent of total mortgages for most of this decade. With higher loan limits in 2008, FHA loans jumped from 1.2 percent of all loans in 2007 to 18.8 percent. VA loans, meanwhile, increased from 0.3 percent in 2007 to 2.7 percent in 2008.

·     The share of home buyers who had a zero down payment declined abruptly from 17.7 percent in 2007 to 3.4 percent in 2008, the lowest level in at least the last ten years. The decline was more obvious for first-time buyers than for repeat buyers.

·     Consistent with the increasing trend of distressed sales, almost one of five (19.8 percent) sellers sold their property because the property was in foreclosure, short sales, or default, an increase of 6 percent from 2007. “Change in family status” was one of the most important reason to sell, increasing from 9.8 percent in 2007 to 19.1 percent in 2008. “Retirement or moving to a retirement community” followed with 11.5 percent, a decline from 15.3 percent in 2008. The desire for a better location, which was the number one reason to sell, dropped by more than half from 17.5 percent in 2007 to 8.1 percent.

·     Three of five (56.6 percent) first-time buyers bought their property primarily because they were tired of renting. Other important reasons for buying properties include

o        Desire for a larger house (9.2 percent)

o        Desire for a better location (9.2 percent)

o        Change in family status (7.9 percent)

o        Investment and tax considerations (7.0 percent)

·     The single most important reason to buy for repeat buyers was their “desire for a better/other location” (21.2 percent) and their “desire (for) a larger home” (19.5 percent).  Other important reasons for buying properties include

o        Investment and tax considerations (18.0 percent)

o        Changed jobs (8.0 percent)

o        Change in family status (7.3 percent)

o        Tired of renting (7.1 percent)