President Sign Housing Bill to Help Struggling Homeowners

President Bush Signed an enormous housing bill intended to provide mortgage relief for struggling homeowners. The measure includes $15 billion in tax cuts and a credit of up to $7,500 for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009.

The Housing bill lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes. This is an important legislation that can reduce mortgage defaults and help boast the housing market.

Bush Signs Housing Bill to Provide Mortgage Relief

By JENNIFER LOVEN, Associated Press Writer

WASHINGTON – President Bush on Wednesday signed a massive housing bill intended to provide mortgage relief for 400,000 struggling homeowners and stabilize financial markets.

Bush signed the bill without any fanfare or signing ceremony, affixing his signature to the measure he once threatened to veto, in the Oval Office in the early morning hours. He was surrounded by top administration officials, including Treasury Secretary Henry Paulson and Housing Secretary Steve Preston.

“We look forward to put in place new authorities to improve confidence and stability in markets,” White House spokesman Tony Fratto said. He said that the Federal Housing Administration would begin right away to implement new policies “intended to keep more deserving American families in their homes.”

The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.

It offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses.

The House passed the bill a week ago; the Senate voted Saturday to send it to the president.

Bush didn’t like the version emerging from Congress, and initially said he would veto it, particularly over a provision containing $3.9 billion in neighborhood grants. He contended the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.

But he withdrew that threat early last week, saying hurting homeowners could not wait — and even blaming the Democratic Congress’ delays in action for forcing an imperfect solution.

Meanwhile, many Republicans, particularly those from areas hit hardest by housing woes, were eager to get behind a housing rescue as they looked ahead to tough re-election contests. Paulson’s request for the emergency power to rescue Fannie Mae and Freddie Mac helped push through the measure. So did the creation of a regulator with stronger reins on the government-sponsored companies, as Republicans long have sought.

Democrats won cherished priorities in the bargain: the aid for homeowners, a permanent affordable housing fund financed by Fannie Mae and Freddie Mac, and the neighborhood grants.

The bill takes several approaches to curing the ailing housing market.

It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.

The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.

The plan also is designed to relieve a broader credit crunch that has taken hold because of rising defaults and falling home values. To free up safer and more affordable mortgage credit, the bill permanently would increase to $625,000 the size of home loans that Fannie Mae and Freddie Mac can buy and the FHA can insure. They also could buy and back mortgages 15 percent higher than the median home price in certain areas.

It goes far beyond addressing the current crisis, however.

The legislation overhauls the Depression-era FHA. It requires lenders to show how high a borrower’s payment could get under the terms of his mortgage. It provides $180 million in pre-foreclosure counseling for struggling homeowners.

The Treasury Department gains unlimited power, until the end of 2009, to lend money to Fannie Mae and Freddie Mac or buy their stock should they need it. The Federal Reserve takes on a new “consultative” role overseeing the companies.

The measure includes $15 billion in tax cuts, including a significant expansion of the low-income housing tax credit and a credit of up to $7,500 for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009.

Democratic leaders, recognizing that the measure could be one of the last items to become law during what’s left of their abbreviated election-year schedule, tacked on an $800 billion increase, to $10.6 trillion, in the statutory limit on the national debt.

Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter.

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979
www.CarolPerdew.com

Financing the American Dream of Home Ownership

Take a look at this information about homes loans from Yahoo finance. The first step to homeownership is talking to a lender and taking the steps to qualify for a home loan.  Talk to your lender to determine what you can afford and understand your mortgage options. Work with your lender to obtain loan approval to take advantage of the opportunities in our real estate market. Now is a GREAT TIME TO BUY!

Mortgage Basics

Adjustable or floating rate, 15-year or 30? How much mortgage can you afford? These are just a few of the many questions home buyers will find information on in this report.

Before You Start

• Take a fresh look at your household budget to determine how much you can spend on a mortgage each month.
• Request free copies of your credit report. (You’re entitled to receive a free one annually from each of the nation’s main credit reporting agencies.)
• Familiarize yourself with all of the variables generally associated with financing a home, such as interest rate policies, terms, points, fees, etc.

Financing the American Dream

Buying a home is the biggest financial investment most of us will ever make. As with any large project or goal, it requires dealing with a variety of complex issues. The best approach is to divide the process into manageable tasks. The following deals with the first steps of gathering your records, determining what you can afford, and understanding mortgage options.

Put Your Own Financial House in Order

Before you go looking for a home, you should determine how much home you can afford. Most lenders will prequalify you to borrow up to a certain amount. Prequalification allows you to focus in on a realistic price range and makes you a more attractive buyer. Whether or not you want to prequalify, eventually you’ll need to complete a loan application and it may take some time to gather and assemble the required information.

It’s also a good idea to review your credit report. Contact local lenders to determine which credit bureaus they use. Then contact the credit bureaus and request a copy of your credit report (in most states, credit bureaus are required to provide individuals with a free copy of their report). Review your report to ensure that all information is correct. If you have past credit problems, don’t lose hope. Be prepared to present a rationale for each slipup, and demonstrate an improvement in your ability to pay bills on time.

How Much Mortgage Can You Afford?

The Federal National Mortgage Association (Fannie Mae) is a government-sponsored organization that purchases mortgages from lenders and sells them to investors. Two income-to-debt ratios established by Fannie Mae are standard requirements for conventional mortgages. The first requirement is that monthly mortgage principal and interest payments (P&I), plus insurance and property taxes, cannot exceed 28% of the buyer’s gross monthly income (some exceptions may apply to increase this limit to 33%). The second requirement limits total monthly debt payments (housing, credit cards, car payments, etc.) to 36% of gross monthly income. In addition to these requirements, you may have to pay 10% to 20% down on the total purchase price to qualify for a conventional mortgage.

Mortgage Rates and Minimum Incomes Needed to Qualify
Interest Rate	Monthly Payment	Minimum Annual Income
4%	$454	$21,770
5%	$510	$24,479
6%	$570	$27,340
7%	$632	$30,338
8%	$697	$33,460
9%	$764	$36,691
10%	$834	$40,017
11%	$905	$43,426
12%	$977	$46,905
Mortgage companies use ratios to analyze your mortgage payment. The above example shows the monthly payments of principal and interest, and income needed to qualify for a $95,000 mortgage at various interest rates, amortized on a 30-year schedule, assuming a payment ratio of 25%. Source: National Association of Home Builders, Economics Division.

Types of Mortgages

How much house you can buy also depends on your mortgage’s term and interest rate. The term is the length of time (usually 15 or 30 years) over which payments will be paid. The rate can be fixed (meaning it doesn’t change over the loan’s term) or adjustable (it fluctuates with market conditions). Thirty-year fixed-rate mortgages remain the most popular. The longer term lowers the monthly payment, while the fixed rate provides stability over the life of the loan. Given relatively low interest rates, these mortgages are attractive to buyers planning to stay at least six or seven years in their new home. The drawbacks are low principal payments in the early years, and the risk that market rates will decline over the term. However, if your credit history is sound and you have sufficient income, you can usually refinance your mortgage when rates decline.

A 15-year term lowers the interest rate, reduces total interest payments, and increases principal payments. But it also increases monthly payments. If you can’t afford the higher payments now, you might opt for a 30-year mortgage. If there are no prepayment penalties, you can make additional principal payments as your income increases. Making just one extra monthly payment a year will pay off a 30-year mortgage in less than 22 years and can save tens of thousands of dollars in interest costs. If you plan to stay in a home no more than three years, you might want an adjustable-rate mortgage (ARM). ARMs offer initial rates that are lower than fixed mortgages. At some point, usually after the first year, rates are tied to market conditions and are subject to potential rate increases. Most ARMs include a cap on rate increases in any given year, as well as over the life of the loan. Some ARMs offer initial rates at least 2% below fixed rates and limit increases to 1% annually and 5% to 6% over the life of the loan. Many home buyers are attracted by the affordability of an ARM during the initial period. However, you should be confident that your future income will be sufficient if both interest rates and your monthly payments increase.

Another popular mortgage involves a balloon payment. A balloon is a lump-sum payment that pays off the loan in full after a fixed period of time. Generally the rates on balloon mortgages are 1/4% to 3/4% less than on 30-year fixed mortgages, but during an initial period of between 3 and 15 years, payments are similar. After this period, the remaining outstanding principal balance is either due in full or subject to refinancing. This is a good option for home buyers who plan to sell before the final payment is due. But because property values fluctuate, you may not be able to sell when you want. You may also face higher payments if you are forced to refinance at a higher rate, and there is also a risk that you may not be in a position to refinance when the balloon becomes due.

Three Steps to Finding the Right Mortgage

Estimate how long you expect to live in the house. If the answer is less than three to five years, consider an Adjustable Rate Mortgage (ARM), which typically starts out with a lower rate. If you plan to live in your new home longer than five years, a fixed-rate mortgage offers protection against rising interest rates. Shop around for mortgage rates. Banks, credit unions, and mortgage companies all offer mortgages. Compare at least six lenders in your area. Add up all the costs for each lender. Include fees, points, closing costs, etc., to arrive at the total mortgage cost for each lender.

Interest Rate Points

Points are interest paid in advance to reduce the rate on a loan. One point is equal to 1% of the mortgage amount. The general rule is that 1 point is worth 1/8 of 1% off the loan rate. The decision to pay points for a lower rate is based on how much the seller is willing to contribute to points, how long you plan to stay in the house, and how important lower payments are compared to higher closing costs. You will need to calculate the long-term value of points based on these factors, keeping in mind that points are generally tax deductible in the year paid.

Other Alternatives

If you cannot afford a conventional mortgage, there are a variety of alternatives. An anxious seller will sometimes offer owner financing. Federal Housing Administration (FHA) loans offer down payments as low as 3%, but may require the buyer to purchase mortgage insurance. (The FHA is a government agency responsible for insuring affordable housing mortgages.) The Veterans Administration (VA) offers no-money-down mortgages to qualified veterans of the U.S. military. Finally, there are local affordable housing advocates that offer low-cost, low down-payment loan alternatives. For further information, contact the FHA, VA, Fannie Mae, or your local mortgage lender or real estate broker.

Summary

• The first step in acquiring a home mortgage is to gather the information you’ll need to include in a mortgage application.
• Review your credit report by ordering a copy from the credit bureaus used by local mortgage lenders.
• Prequalifying for a mortgage lets you know how much you can afford and makes you a more attractive buyer.
• Conventional mortgages limit housing costs to 28% of gross income and total debt payments to 36% of gross income.
• Mortgage terms are usually 15 or 30 years. The longer the term, the lower your monthly payment, but the higher your overall interest costs.
• Thirty-year loans often permit additional principal payments. One additional monthly payment per year will reduce a 30-year loan to 22 years.
• Interest rates are fixed or variable over the term of the loan. Variable rates may be best for buyers who plan to sell within three years.
• Generally speaking, one point is worth 1/8 of 1% off the loan rate.
• A balloon payment is a lump sum payable at the end of a specified term.
• Points and interest on mortgages or home equity debt are usually tax deductible.

  Search for Bank Owned Homes at www.CentralValleyHomes.com

Tips for House Hunting

House Hunting

Presented by Freddie Mac Home Buying Guide

Once you know how much money you can borrow and have an estimate of your closing costs, you’ll know the price range you can afford. You might already have your “dream home” in mind. Perhaps you want to settle down in a particular neighborhood, or maybe you just need more space for your growing family.

Even if you know exactly what you’re looking for, the house hunting process can be overwhelming. It takes time.

The First Step – A Reality Check:

It’s fun to look at houses. And this part of the process is very exciting, but don’t let your excitement rule the house-hunting process.

• Stick within your budget – don’t look at homes above what you can afford – even if it’s “just a little” more.
• Don’t let your heart rule over your head. You may fall in love with a property, but if it is beyond your means, it is not the right house for you.
• Be flexible. Don’t be disappointed if the houses in your price range differ from your dream. Buy the home you can afford rather than the home that “has it all.”
• Compare what you’d like to have with what you really need.

Some good house-hunting tips:

• Take pictures inside and outside the home.
• Bring a spouse, family member, or friend.
• Make sure the house fits into your budget.
• Ask about utility and maintenance costs.
• Think of commuting time and costs.
• Consider your monthly budget – can you afford the renovations and maintenance that you’ll need to do?
• Don’t make a “spur-of-the-moment” decision.

Additional tips to make the house-hunting process easier

• Concentrate on a few neighborhoods. Decide what’s most important to you about
   the neighborhood you want. This can greatly narrow down your search.
• Find a real estate agent. They’ll have many more listings than you can find
  on your own.

Compare homes. Make sure you know what you would get and what you would miss
 in each house before you make a decision.

Search for homes at www.PerdewHomes.com

400 ATTEND LOCAL MOVIE IN THE PARK

Music and movies in park is a success.  More than 400 people came out  to enjoy free Movies in the Park event at Woodward Park. This Saturday, the music starts at 7 p.m., cartoons at 8:30 p.m. and the featured film – the PG-rated “August Rush” at 9:15 p.m. 

Saturday in the Park
More than 400 enjoy free music & movie

Dennis Wyatt
Managing Editor
Manteca Bulletin

Music and movies.

It was a winning combination Saturday evening at Woodward Park as more than 400 people attended the inaugural free Movies in the Park event at Woodward Park.

“It was great,” said Fred White who not only conceived of the event but also is essentially footing the bill unless he gets enough sponsors to cover the tab.

Deputy Parks & Recreation Director Bruce Mulder couldn’t agree more.

“It accomplishes just what our department motto says – creating community with people, parks and projects,” Mulder said.

The first week of movies got off with just some minor glitches as families flocked to Woodward Park bringing blankets, chairs, picnic baskets, and pillows. Many also partook of various offerings of vendors for the outdoor movie theatre that included a nearby playground.

The bands were as popular as the movie. This Saturday, the music starts at 7 p.m., cartoons at 8:30 p.m. and the featured film – the PG-rated “August Rush” – at 9:15 p.m.

In keeping with the film’s theme, Agape Villages will be the special guest.

The non-profit organization places foster children. They will have information about their services and will be conducting a raffle as well as accepting donations.

DeCristo Productions in conjunction with the Manteca Parks & Recreation Department is conducting the free Movies in the Park for five weeks ending Aug.9.

White, who owns DeCristo Productions, said parents were particularly appreciative of the inexpensive way to have a family outing on a Saturday evening.

The 20-foot wide screen is near the playground area.

All of the production is in high definition. Admission is free and people are encouraged to bring blankets and their own snacks. The Manteca Christian School, though, will have concessions available. Those wanting a vendor booth for the evening can secure them for $100.

It takes the movies in the park conducted in previous years by the Manteca Convention & Visitors Bureau at Library Park to the next level. By being on a Saturday night instead of Tuesday, White hopes to encourage more families to attend. His production company also has cutting edge audio-visual equipment that will enhance the experience of watching high definition big screen features while lounging on the grass under the stars.

Among the other sponsors so far are Sigma Home Loans, Yosemite Nursery, Best RV Center, Manteca Baseball and Softball Academy, Agape Villages and Carpenters Steam Cleaning.

For more information, contact White at (916) 760-7363.

 

Thanks,
Carol Perdew
www.CentralValleyHomes.com 

 

New Bass Pro Shop Hiring 370 Employees

Bass Pro Shop is opening in the first in October in Manteca. The Bass Pro Shop is hiring 270 employees. The Bass Pro Shop management team will be on hand on hand to discuss employment opportunities. The job fair is scheduled for Monday, July 21 through Wednesday, July 23, at the Manteca Boys & Girls club at 545 W. Alameda.

Bass Pro Hiring 270 Employees

Dennis Wyatt
Managing Editor

Manteca Bulletin

The management team for the Manteca store will be on hand to discuss employment opportunities each day from 8 a.m. to 7 p.m.Bass Pro Shops is filling both full-time and part-time positions. Retail experience is a plus.

Jobs include cashiers, loss prevention, receiving, customer service, detailers, and riggers. Sales associates are needed in various departments including hunting, fishing, marine, camping, archery, visual, apparel, footwear, and boat sales among others.

You must apply in person.

Bass Pro Shops is opening in the first week of October.

The 119,000-quare-foot store will anchor the Promenade Shops at Orchard Valley now under construction on the southwest corner of Union Road and the Highway 120 Bypass.

Manteca is the firm’s 53rd store.

Bass Pro Shops stores are noted for its massive aquariums, signature restaurants, and displays reflecting the regional outdoor settings and species. In Manteca, the emphasis will be on Yosemite and the Delta. It creates a shopping experience that often finds customers spending 4.5 hours wandering through the facility taking in the displays and shopping.

Manteca Mayor Willie Weatherford fondly points out that a Bass Pro Shops store is akin to seeing an REI outdoors store on steroids with a distinctive twist that would make Walt Disney jealous.

None of the firm’s existing 48 stores that are already open attract a combined 85 million visitors annually are alike.

Thanks,
Carol Perdew
(209) 239-7979
Carol@PerdewHomes.com

www.CarolPerdew.com

 

Next Stage of Construction for a 3-story J.C. Penney

JC Penney is getting ready for the next stage of construction of the 3-story building in Manteca at the corner of the Highway 120 bypass at Union Road.  The JC Penney building will be a free standing, at 60 feet, making it the tallest building in Manteca.    The new JC Penney will be the anchor store in The Promenade Shops.

 

JC Penney plans for 3-story store’s interior at City Hall

Dennis Wyatt
Managing Editor
Manteca Bulletin

JC Penney is getting ready for the next stage of construction of its 103,000-square-foot Manteca store.

The national retailer has submitted to the City of Manteca plans for its three-story department store that is one of two anchors for The Promenade Shops at Orchard Valley lifestyle mall now under construction on the southeast corner of the Highway 120 Bypass and Union Road.

Hampton Inn has also submitted plans for a 125-room hotel that will be located between Bass Pro Shop and the 16-screen Kerasotes Theatre just off Atherton Drive near Veritas School.

The JC Penney store is being touted by the retailer “as a newer concept store.” It will be free-standing from any other mall structure. At 60 feet, it will be the tallest retail structure in Manteca.

The permit in review is for interior improvements. The shell of the building is already under construction. It is the structure closest to the Union Road and Highway 120 interchange.

The Hampton Inn may go as high as seven stories which is what the project was approved for last year. Details of the plans were not yet available.

Poag & McEwen also has started work on the Best Buy store as well as in-line shops and several restaurants.

Retailers like the demographics of the South County with its average household income in excess of $68,000 as well as the fact 70,000 vehicles a day travel the Highway 120 Bypass.

What impressed Bass Pro Shop is that within in a 100-mile circumference from Manteca are 17 million consumers with some of the most affluent communities in Northern California tucked around San Jose, Sacramento, and San Francisco. Bass Pro Shop is targeting an opening date in the first week of October.

There are only two other places in the United States at the epicenter of more consumers in a 100-mile radius – Manhattan and Los Angeles. Coming in No. 3 with 17 million consumers is Manteca.

The drawing power of a 60-mile radius with the Big League Dreams sports market analysis identified 2 million plus consumers.

The 746,740-square-foot lifestyle center is close to being 50 percent leased.

The JC Penney permit and the hotel will not show up in a building report in terms of its exact value until the permits are issued.

In the first six months of 2008, the city has issued building permits for construction valued at $77.1 million.

 Thanks,
Carol Perdew
(209) 239-7979
wwwCentralValleyHomes.com

FIRST FORECLOSURE PREVENTION FORUM

Banks are Starting to work with struggling homeowners to avoid foreclosure. The non-profit “No Homeowner Left Behind “group has been working in various cities and lenders to help homeowners hopefully save their homes. This Manteca forum is being held at the Manteca Senior Center on Wednesday, July 16, from 6:30 – 8:30 p.m.  For a complimentary real estate consultation please contact Carol Perdew at (209) 239- 7979 or go to www.CentralValleyHomes.com.     Foreclosure Prevention Forum Manteca, Private Sector Stepping up to Help Dennis Wyatt Managing Editor Manteca  Bulletin  7/7/08 There are nearly 1,500 homes in Manteca in various phases of the foreclosure process. The banks that are preparing to sell them already own some. Others are at least at the first step of being a month delinquent in payments. That’s the bad news. The good news is that some banks are starting to work more aggressively with struggling homeowners to avoid foreclosure. Also, there is a coalition of private and public sector resources banding together in a bid to arm homeowners caught up in the foreclosure mess with essential information to help them take control of their future. “To be honest, a lot of people may not be able to save their house but they will have the information they need to proceed with dignity,” said Edward Parcaut, a mortgage planner out of Modesto who has been working with the non-profit No Homeowner Left Behind effort. But as Parcaut noted, the fact the group exists and has been working with various cities and lenders has helped improve the odds of homeowners to possibly save their homes or at least be able to move on with less fear and more certainty. The first Manteca forum is Wednesday, July 16, from 6:30 to 8:30 p.m. at the Manteca Senior Center, 295 Cherry Lane. It is a forum not only to have experts answer questions but to prepare distressed homeowners to talk to lenders at an upcoming larger gathering designed to see if there is a way that they can keep their homes. At such gatherings in the past, some homeowners have been successful with negotiating with bank representatives on the spot to secure 30-year fixed rate loans that have kept them in their homes, Parcaut cautioned that not all banks are working to that degree. He also warned that some people might simply not be in a position based on the determination of the bank to get a streamlined loan at a reduced rate. But, as he noted, the climate today has vastly improved compared to six months ago when banks were struggling to figure out what to do. “We can’t guarantee that your house will be saved,” added Anna Rocha of the Manteca Redevelopment Agency. She noted what the forum July 16 and the upcoming face-to-face with lenders that will take place after a second forum is completed in the upcoming weeks in Tracy can accomplish is helping people deal with the unknown of maneuvering through the foreclosure process. Rocha, along with Parcaut and Central Valley Association of Realtors President Bev Marlow, indicated the worst thing people can do is simply do nothing or ignore the foreclosure process. Similar efforts in Fresno have been credited with drastically reducing vandalism done to homes by frustrated homeowners who were losing them to foreclosure. “You’re seeing a lot less damage everywhere because people are being shown how they can deal with it with dignity,” Parcaut said. Rocha added that there is no longer a stigma attached to foreclosure since the odds are there is another neighbor who is going through the same problem. With 1,500 homes in various stages of foreclosure in Manteca that represents about 1 out of every 14 single-family homes in the city’s housing stock. “It isn’t to anyone’s advantage to see a home going into foreclosure,” noted Deputy City Manager John Nowak who cited the potential for blight, crime and deteriorating neighborhoods not to mention economic and property tax impacts. Staff is executing the City Council’s directive to take steps to do what can be done to ease the impact on the community and affected families. “Obviously, the redevelopment agency doesn’t have the resources to intervene on a (large) scale,” Nowak said. He added that the coalition to educate homeowners is the most effective way that the RDA money can be spent as it is showing results. Marlow noted that even though home sales have picked up to double of last year’s pace with nine out of every 10 of the 410 existing homes that have sold in Manteca since Jan. 1 being foreclosures, there is a serious concern about how many more people will be able to take advantage of the housing market to become homeowners. For now, more foreclosed homes are being sold than those that are being taken back by the banks. The biggest wave of foreclosures, though, has yet to hit. Parcaut said some lenders understand that concern which is why they are now willing to deal aggressively. But those who don’t get involved with the process may find themselves losing a home they could have saved. “The worst thing is to do nothing,” Marlow said. Past forums have helped people to understand that if they trash their home, it will become more difficult – if not impossible – to rent. While the foreclosure goes on credit reports, it doesn’t necessarily preclude families from renting. But what might are landlords who will drive to the home where a family who is in foreclosure stress had been buying to see what condition it is in. The forum could also benefit those who rent homes being foreclosed to make them aware of their rights and what they can do. The forum will feature Housing and Urban Development certified housing counselors and a panel of housing industry professionals from the No Homeowner Left Behind Central Valley collaborative to answer questions. All are volunteers. No solicitation for business will take place. Although this is not the gathering where you would need to have your loan documents and other information to meet face-to-face with bankers, it can be helpful to bring mortgage papers if you have questions that need to be explained regarding the specific document. For more information contact the Manteca Redevelopment Agency at 239-8427.

Good News for 30 Year Mortgage Rates

30-year Mortgage Rates Drop

Pioneer Press
07/03/2008

WASHINGTON — Rates on 30-year mortgages, which had been rising for five straight weeks, posted a decline as signals from the Federal Reserve eased worries about imminent rate increases.

Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.35 percent this week. That was down from 6.45 percent last week, which had been the highest level since last September. The decline pushed the rate to its lowest level in three weeks but it remained above 6 percent, where it has been since the week of May 29.

Other types of mortgages showed decreases this week as well, according to the Freddie Mac survey.

Rates on 15-year fixed-rate mortgages dropped to 5.92 percent, down from 6.04 percent last week.

The five-year adjustable-rate mortgage fell to 5.78 percent, down from 5.99 percent last week. The rate on a one-year adjustable-rate mortgage declined to 5.17 percent, compared with 5.27 percent last week.

The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year, 15-year and one-year mortgages all averaged 0.6 point this week. The fee on five-year mortgages averaged 0.7 point.

—Associated Press   

View Current Mortgage Rates at www.CentralValleyHomes.com 

 

HABITAT HOME IN TRACY

A Housing Surprise

Glenn Moore / Tracy Press

A family being helped by Habitat for Humanity now lives in a rundown Fourth Street house co-owned by one of the charity’s volunteers. The Fourth Street house the Avalos family rents is in bad shape, residents and Habitat for Humanity workers say, but the co-owners, including a Habitat volunteer, said they had no idea the conditions were so bad.   Since late last year, Habitat for Humanity has worked to get a home for a Tracy family of five who live in what volunteers described as decrepit conditions in a rental on Fourth Street. Last Saturday was supposed to be the first day of work on a South Street Victorian home that Habitat had chosen to refurbish and sell to Jose and Lourdes Avalos. But volunteers found what might be toxic mold in the house they’d hoped to fix up, and they boarded up the home. That wasn’t the only surprise. Dale Cose, a local builder/developer who was helping to refurbish the South Street home for the charity, found out he’s a part-owner of the rental on Fourth Street where the Avalos family has lived for the last five years. Cose is an active member of Habitat for Humanity, but he doesn’t serve on the committee that interviews and chooses families to help. He said he had no idea the Avaloses lived in one of his many properties. And his partners from the Bay Area, who co-own and manage rentals, including the Fourth Street home, said they had no idea the family was living in such poor conditions. “They’ve never called about the heater or the roaches or rats,” Robert Heisler said Tuesday. “We only knew about the septic problems.” Heisler said they bought the home in 2006 with the intention of tearing it down for a housing project. He found out the Avaloses had been living there for a year and allowed them to stay, charging $1,100 in rent, because that’s what the Avaloses said the former owner had charged them. When the family applied for a Habitat for Humanity home, the volunteers visited them in their Fourth Street rental and were “floored,” Habitat volunteer Karen Jordan said Saturday. “It was colder inside than it was outside,” Jordan recalled. “(We) were beside ourselves.” Many applicants for Habitat homes are assessed based on financial need, which is an important qualifier, Jordan said. The Avaloses had that need and also were willing to commit to help fix up the house. And they could make the payments to buy the house. Jose Avalos is a swimming pool contractor, and Lourdes Avalos volunteers at her son’s school and cares for the family’s children, who are 2, 4 and 6 years old. But the main reason they were chosen above other families was the home they were living in — complete with cockroaches, rats, a bubbling-over septic tank and no heat or air conditioning. In a meeting Tuesday, Lourdes Avalos told the Heislers and Cose through an interpreter how the summer heat brings out cockroaches and rats out in the rental. Dead leaves choke the furnace, making it unusable. “If she turns it on, the dry leaves will catch fire and burn the house down,” Jordan translated for the Spanish-speaking tenant. News of a full-to-the-brim septic tank elicited no surprise from the Heislers, though. The landlord read a list of the number of times the septic tank in the Avalos home needed emptying in the past two years and the number of times it was drained. The list was long. “It’s because they have too many people living there,” Heisler said, adding that he turned a blind eye on the overcrowding in the home. “They keep that place clean.” He asked why the Avalos had never complained to his company about the problems. Alice DeLaurier-O’Neil, a Habitat volunteer, discussed the “fear factor” many immigrant families face. “They don’t want to rock the boat” with complaints about water heaters when it could mean they lose their home, she said. Heisler countered that he didn’t want to “rock the boat,” either, because the city could crack down on his rental and kick the tenants out anyway. He also asked why Habitat volunteers had kept mum to him about the conditions, if they were so bad, and volunteers said they’d simply wanted to get the Avalos family into a new home as quickly as possible. “We didn’t want them to be homeless,” Jordan said. Meanwhile, the mold in the would-be Habitat fixer-upper will force the nonprofit to demolish the 107-year-old Victorian on South Street. But all is not lost. Volunteers have their eyes on another old house in town that wouldn’t require much work. They looked at a four-bedroom house Monday night and hope to help the Avaloses buy it through the city’s low-interest down-payment loans.

 

CAROL PERDEW
(209) 239-7979

www.CarolPerdew.com

South San Joaquin County New Economic Growth

Growing Economic Muscle
South County Boasts Household Income of $67,280

Dennis Wyatt
Managing Editor
Manteca Bulletin

The economic muscle of the South County – Manteca, Lathrop, Tracy, and Ripon – is second to none in the Northern San Joaquin Valley.

In 2006 based on the American Community survey it had:

• an annual $67,280 median household income.

• 207,892 residents.

• 71 percent of its housing is owner occupied.

• 12.3 percent of its population – the lowest in the area – is living below the poverty level.

The South County is the wealthiest area in the three counties of Merced, Stanislaus and San Joaquin and tops San Joaquin County’s other regions that include South Stockton, North Stockton and Lodi/Escalon in virtually every category.

Just fewer than one in every three of San Joaquin County’s 673,170 residents live in the South County. The next closest county region is Lodi/Escalon with 184,841. The City of Stockton was divided into two segments exclusively of the incorporated areas for the comparison conducted by the Ebhardt School of Business Forecasting Center. South Stockton had 120,287 residents and North Stockton 160,150.

The $67,280 median household income is way out in front with Lodi/Escalon coming in second at $50,255, North Stockton third at $49,576, and South Stockton last at $37,592.

Not surprisingly, South Stockton leads in poverty with 18 percent of its population classified as such. Both Stockton and Lodi/Escalon have 14 percent of their population living below the poverty line.

The strong economy is credited with the number of people who live in the South County and commute to higher paying job west of the Altamont Pass. Typically, they move here while holding Bay Area jobs in search of affordable housing and a better lifestyle for their families.

In fact, 44.2 percent of all immigrants whether from the Bay Area, other parts of California, other states or foreign that move into San Joaquin County settled in the South County.

The South County has the lowest percentage in terms of the overall population of non-U.S. citizens with 12.1 percent trailing in that category. It is 14.2 percent and 14.1 percent for North Stockton and Lodi/Escalon respectively. South Stockton has one out of every five residents who are not American citizens.

Population composition based on ethnic backgrounds is as follows by region:

• Tracy/Manteca: 46.7% white, 31.2% Hispanic, 22% other races.

• Lodi/Escalon: 51.2% white, 38.2% Hispanic, and 10.5% other races.

• South Stockton: 50.4% Hispanic, 29.7% other races, and 19.8 % white.

• North Stockton: 40.4% other races, 31.9% white, and 27.7% Hispanic.

Lodi/Escalon is behind Manteca/Tracy with its 71 percent level of owner occupied housing with 66.3%, Next is South Stockton at 56% and then North Stockton at 54.5%.

 

CAROL PERDEW
(209) 239-7979
www.CarolPerdew.com