Category Archives: Finance

What is a mortgage and how does it work?

This post was published 3 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

Thanks to the Khan Academy. Great information for first time homebuyers! They don’t seem to teach this stuff in schools, despite how critically important this financial knowledge can be. In our line of work these concepts seem pretty basic. But we often run into people who want to buy a home, but have no idea of the mortgage process or implications. So this is a good video explanation, and we are curating it here at the blog.

Here’s a link to the Fixed Mortgage Spreadsheet used in the video.
Thanks Khan Academy, for all your good work!

Downpayment assistance in Shasta Lake City

This post was published 4 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

Shasta Lake City offers downpayment assistance to qualified buyers for homes up to $165,000. The assistance takes the form of a so-called “Silent Second” loan up to $80,000. This can be a very attractive way for first time buyers to get into a home of their own.
Information about Shasta Lake home buying

Looks like there are currently 15 homes available to purchase in Shasta Lake City under $165K. Note that not all these homes may be suitable. Shasta Lake City offers a terrific small town environment, and is close to lots of recreational opportunities. We love helping first time homebuyers! Let us know if we can help you find a home in Shasta Lake City.

Call or Text (530) 356 4500

New lower FHA lending limits will impact the Redding homes market in 2014

This post was published 4 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

The FHA has announced they are lowering the loan limits for homes in Shasta County and other northstate areas. This quote about the FHA limit drop is from redding.com’s David Benda:

“The Qualified Mortgage rules come on line about the time Federal Housing Administration lowers its loan limits on Jan. 1 in Shasta County from $423,750 to $273,700. Limits in Tehama and Siskiyou counties go down to $271,050.”

So, that’s quite a drop. I expect it will have some impact. This came to me from a lender yesterday:

“I am sure you are all aware of the coming change, but thought I would send something out in case you missed it… These loan limits are for SFR— quite a big difference from current limit… if you have a “high end” buyer for FHA, get them into contract before end of the year to get the higher loan amount!”

All Case numbers assigned on January 1st 2014 and after have a new loan limit:

Shasta County $273,700.00

Tehama County $271,050.00

Siskiyou County $271,050.00

Trinity County $271,050.00

Butte County $293,250.00

High end homes anyone? Better hurry.

HP11 650px

Why are Chinese buying California real estate?

This post was published 4 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

We haven’t seen all that much of it here in the greater Redding market, but Chinese buyers are having an impact on California real estate to the south of us. Check out this brief video from MSNBC, as brought to my attention by blogger Marc Beauchamp:

“As for where all that cash is coming from? Nobody really wanted to talk about it.”

Yeah. I dunno. I can’t recall seeing home buyers cover their faces from cameras before. It looks more like a perp walk from a newscast. Education? Climate? Feng Shui? Uh, maybe.

Gloom blog Zero Hedge has a different perspective on the new Chinese wealth, and the effect of that Chinese cash on our economy. Perhaps Jeb Allen should book a flight to the mainland for his Palomar sales reps. Meanwhile, we’ll be brushing up on our Feng Shui, and directing buyers to properties like this amazing 1.5 square mile foreclosure property just listed for a mere $2.95M USD.

Mortgage interest rate chart is alarming

This post was published 5 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

A breathtaking spike in rates. Chart right from Freddie Mac. If you’ve been thinking about selling, think quick. It just got costlier for buyers. Their new higher monthly payments may shut out some buyers. We’ve been seeing heated sales activity lately, but the new reality may change all that soon.
June 2013 Mortgage ratesWe’re offering a way to list your Redding area house in our MLS for a flat rate. Retaining all the quality you deserve, without the added costs you don’t. http://northstateflatrate.com

HSBC Bank accused of money laundering

This post was published 5 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

So what’s that have to do with homes in Redding California? HSBC Bank is Owner of Record of about a dozen homes around here:
HSBC bank holdings in Shasta county

“By Steve Slater and Matt Scuffham
LONDON | Mon Nov 5, 2012 7:12am EST
(Reuters) – A U.S. fine for anti-money laundering rule breaches could cost HSBC significantly more than $1.5 billion and is likely to lead to criminal charges, Europe’s biggest bank said on Monday.
HSBC said the U.S. investigation had damaged the bank’s reputation and forced it to set aside a further $800 million to cover a potential fine for breaches in anti-money laundering controls in Mexico, adding to $700 million put aside in July.”

Here’s a link to the Reuters article, of which the quote above was an excerpt.

So why is that important to Shasta County? The rampant methamphetamine scourge has affected everyone. Most of the supply now comes from Mexico. The biggest logistical problem facing meth producers and distributors is not production or smuggling. It’s money laundering. Where to put all that cash? Any institution that enables laundering, enables meth production.

So will the U.S. punish HSBC behavior with a pittance fine, and maybe throw a few sacrificial goats in jail? Phooey. That’s nothing to them. The money will disappear into the open maw of the federal government, serving nobody directly impacted by the bank’s actions.

Breaking Bad cash

Scene from AMC channel show Breaking Bad. One of the biggest problems facing meth producers is laundering cash.

What if instead, our government seized all their U.S. real estate holdings? Locally, they could then give these dozen holdings directly to the communities harmed. Shasta County could sell these properties and put the money to use for rehab, or to expand the jail. Whatever the localcommunity decides. Hey, D.A. Carlton. Can you not seize these properties under the RICO act? I think it’s a valid question. Where is justice for Shasta County?

872 Springer Redding 96002

HSBC is listed as owner of this foreclosed home in Quail Ridge, currently listed for sale at $164,900. Is this a candidate for asset forfeiture?

Congressional response to my client’s plea for help

This post was published 5 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

None, so far. Readers will recall I have clients who may require government intervention on their behalf to prevent a Freddie Mac foreclosed home they have offered to purchase from being sold to a private investor group. We went to our representative’s website, and sent him an email message, asking for help. So far we’ve been waiting for any kind of confirmation of receipt. Waiting this long:

[fergcorp_cdt_single date=”Fri, 26 Oct 2012 14:00:00″]

We weren’t sure what to expect, of course. So we’ll keep an open mind. Also, we saw in the news that Congressman Herger was busy at a ribbon cutting ceremony yesterday for a giant corporation. So he’s busy. And my clients aren’t giant corporations. They are just working people who want to buy a home in their community. Our community. A home foreclosed on by the government. And then offered for sale locally, only to be “pulled” for a bulk sale. Or so it is threatened. Let’s hope we get intervention soon.
Meanwhile, here’s a video from Freddie Mac, explaining the reason they exist. No mention is made of their seizure by the US Treasury in September 2008.

Where can you use a USDA loan?

This post was published 6 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

USDA loans are great for home buyers who have little or no money for a down payment. Generally, the areas around the City of Redding are the only places where the loan does not apply. However, that may change soon with Shasta Lake City becoming also ineligible. There is a map-based website that will tell you where the USDA loan is currently applicable. Click on the link or the map for the site.
USDA loan map for Redding CA

Good resource for mortgage modifications and more

This post was published 6 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

If you have a mortgage with Bank of America, Countrywide, Chase, Ally, GMAC, Citi, Wachovia, Washington Mutual, or Wells Fargo, here’s a webpage set up by the Office of Attorney General that can direct you to real help in obtaining a mortgage modification if you need it. All these lenders were forced into a restitution program in return for not having to undergo prosecution for robosigning and other frauds. Click on the image below, or go to http://www.oag.ca.gov/nationalmortgagesettlement
National Mortgage Settlement of California

No more USDA mortgage loans for Shasta Lake City?

This post was published 6 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

That’s the information I’m getting from the always informed Judy Lampton at Summit Funding. USDA loans are a good source of funds for buyers needing to buy with no money down. Here’s the info:

“As of October 1st Shasta Lake City will no longer be USDA eligible and they are raising their Annual Mortgage insurance fee from .30% to .40%.
On a 100,000 purchase that means the annual fee (charged monthly) will go from $300 to $400 or $8.33 a month. Not a huge increase in fee’s but the loss of SLC as an acceptable area is huge.

In the past USDA changes hinge on the date you get “commitment for funds” from USDA. This happens after all conditions have been met and right before loan docs go out.
USDA loans in Shasta Lake City coming to an end soon?
We have not seen an official bulletin regarding this change but we know that it is coming; so if you have someone looking in SLC you need to get them off the fence and into contract this month to make sure it closes by 9/28…just to be on the safe side.

I will send you more information when I have it.

Your Referrals are Very Appreciated.
Thank you,

Judy Lampton
Loan Consultant
Summit Funding, Inc.
3673 Eureka Way
Redding, CA 96001

Off – 530-722-9109 x107
cell – 530-953-9299
Fax – 530-722-0498

NMLS # 357395″