Fremont Real Estate and Beyond

From time to time the CAR lawyers receive questions about the possibility of voiding or "stripping" a lien in a bankruptcy proceeding when the value of the property has fallen below the amount of the lien. Usually this would only apply to a second lien when the value of the property has fallen below the value of the first mortgage; the second lien is now "unsecured" and can be stripped or voided. This process is allowed in a Chapter 13 reorganization but the lien is stripped only if the debtor completes the bankruptcy plan.   However, in most of the country, a debtor could not use the lien stripping process in a Chapter 7 liquidation.  Only the 11th Circuit (Alabama, Florida, Georgia) allowed this if the lien was totally unsecured, holding they were bound by 11th Circuit precedent. The 11th Circuit had found a distinction in a 1992 Supreme Court case, Dewsnup v. Timm , 502 U.S. 410 (1992), where the Supreme Court held that a Chapter 7 lien th

A divided U.S. Supreme Court (5 to 4) found that the Fair Housing Act (42 U.S.C. § 3601 et seq.) prohibits what might otherwise be viewed as a neutral practice but which has a disparate impact on minorities even though there might be no intentional discrimination.  Texas Dept. of Housing and Community Affairs v. Inclusive Communities Project, Inc., No. 13-1371. Using a long-standing legal argument, but one which had never been addressed directly by the Supreme Court, Inclusive Communities Project, Inc., claimed that, notwithstanding that there was no direct intent to discriminate against minorities, the Texas Department of Housing and Community Affairs allocation of tax credits to developers had a disparate impact on minorities and was thus prohibited under the FHA. In this case the plaintiffs were allowed to use statistics to show that the Department's policy had a negative impact on black residents. Justice Kennedy's majority opinion found that congress h

A really interesting article came out in Fortune about research from Wharton economists Fernando Ferreira and Joseph Gyourko.  Their paper looks at foreclosure data from 1997 through 2012 and finds that while foreclosure activity started first in the subprime market, the foreclosure activity in the prime market quickly outnumbered the number of subprime foreclosures. The article can be found here-- http://fortune.com/2015/06/17/subprime-mortgage-recession/

Strong words from the CEO of the Mortgage Bankers Association via Linkedin.  https://www.linkedin.com/pulse/new-housing-crisis-david-h-stevens The New Housing Crisis? We are currently in the middle of a housing crisis.  That's right...I said it.  Industry experts, economists and even consumer groups have predicted one would emerge, albeit this is not what they expected and it is certainly sooner than anticipated. Yes, the word crisis is harsh and alarmist, but it accurately reflects the complete void of focus on housing as an opportunity by Washington policy makers, including the actions of the regulators and enforcement officials that are narrowing the credit box.  Fact - there is a shortage of affordable housing (both rental and owned) and the homeownership rate today is at its lowest point in over two decades.  Today's environment is not encouraging credit expansion. It's forcing lenders to be overly conservative - ultimately failing entry-level homeow

The National Association of Realtors just released their data for the month of May. More info here-- http://www.realtor.org/news-releases/2015/06/existing-home-sales-bounce-back-strongly-in-may-as-first-time-buyers-return

A really interesting case just came out from California’s state Supreme Court which ruled that cities have broad authority to require builders to include a percentage of affordable housing in new projects. The court case stemmed from a 2010 San Jose law that requires some new residential developments to set aside 15 percent of their units for sale at below-market rates. Due to the ruling, affordable housing requirements will be kept intact in cities across the state. Builders in the case argued that the cost of affordable units was being transferred from the public to homebuilders by these requirements. More info can be found here-- http://losangeles.cbslocal.com/2015/06/15/court-california-cities-can-require-developers-to-build-affordable-housing/#.VX8tIyqlSX8.twitter

The California Association of Realtors just released their data for the month of May for the entire state. California home sales soften in May but spring home-buying season continues momentum • Existing, single-family home sales totaled 423,360 in May on a seasonally adjusted annualized rate, down 1.1 percent from April but up 8.9 percent from May 2014. • Statewide sales were above 400,000 mark for second straight month. • May statewide median home price was $485,830, up 0.8 percent from April and 4.4 percent from May 2014. • California median price was the highest since November 2007. • Available housing supply remains constrained with 3.5 months of inventory. LOS ANGELES (June 15) – California home sales softened in May, but the housing market momentum continued to be solid as the spring home-buying season marked higher year-over-year home sales and prices for the fourth straight month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. Home sales rose

Mark your calendars for June 30! The 3rd community workshop for a bike trail connecting Niles to Sunol will be held at the Fremont Veteran's Memorial Building at 6:30pm.  I think it's great that Sunol will be connected to Niles and hopefully the rest of Fremont via the Alameda Creek Regional Trail to make this town more bike friendly.  

First Tuesday just released a study on home prices vs. buyer purchasing power.  They predict increasing home prices in the coming years. More info here-- http://journal.firsttuesday.us/the-source-of-home-price-movement-buyer-purchasing-power/27418/

Xome, a subsidiary of NationStar Mortgage just launched a few days ago and is ready to compete with the likes of Redfin for online presence, real estate data, and user search interface.  They key difference is that Xome doesn't have Realtor's on their payroll (they are affiliated with agents in the area), so they can expand more quickly and have more in-house data to provide the consumer. One good thing about Redfin is that it has an amazing back end software system that make transactions for both the buyer and seller quite smooth and it keeps the Realtor on top of the clients they are servicing.  There are competitors like Amitree, which has some kinks, so Xome is a welcome competitor. I'll let you know how Xome's software compares with their competitors! More info about Xome-- http://www.stockhouse.com/news/press-releases/2015/06/09/xomesm-launches-new-platform-to-transform-consumer-real-estate

CAR Just released the April interactive market statistics.  Choose a county to see the latest statistics.

A story in the Press-Enterprise highlights some of the difficulties real estate agents and consumers are having when it comes time to refinance or sell a home with a HERO or PACE loan. The Property Assessed Clean Energy, or PACE, program upgrades include HERO loans. The HERO program allows a homeowner to install “green” improvements at a low out-of-pocket costs, but with a payment program attached to a homeowner’s property-tax bill. Real estate professionals say well-meaning green energy loan and lease programs crafted to put idled contractors to work and pump up home values need to be scrutinized carefully. The new, energy-efficient products to lower utility payments and increase the value of a home are written into property tax bills as an added assessment, and payments can stretch out for up to 20 years. The cost, plus an administrative fee, and interest, is tax-deductible. But it also takes a first-lien position. The first-position is so important the Federal Hou