Walking away from a mortgage you can still afford to pay has consequences; everyone knows that. Your credit score is shot and it can be impossible to get credit.

Some homeowners, no doubt, believe that the credit score hit is worth getting out from a deeply underwater mortgage. They may owe, say, $500,000 when their house value is only valued at $350,000. And, they figure, there’s no way it will ever be worth what they owe so it’s better to get out from underneath the burden.

After default, they reason, they can raise their FICO scores by paying all their bills on time and eventually finance another home purchase.

Don’t count on it.

While homeowners who default due to economic hardship, such as a job loss or divorce, normally must wait two to five years before buying a home again, walkaways may face double that time.

“It could be well over seven or eight years before [walkaways] are able to obtain a mortgage to buy a home again,” said Jay Brinkmann, chief economist for the Mortgage Bankers Association.

Read more @ http://money.cnn.com/2010/05/28/real_estate/homebuying_after_foreclosure/index.htm

Lodi was first called Mokelumne.  It was founded in August 1869 when the Central Pacific Railroad chose the site for a station on its new route.  The town consisted of a store/post office building, a hotel and the station.  In the spring of 1870, people from neighboring towns moved to Mokelumne until, by October, there were 56 houses.  In 1874, the name of the town was changed to Lodi.  It is uncertain why “Lodi” was chosen.  Some people said it was the name of a local racehorse, others claimed that it came from the famous bridge in Italy.  A third explanation is that some of Lodi’s  citizens came from Lodi, Illinois. Whatever the source of its name, Lodi continued to grow.  The first school in town was built in 1872.  The first newspaper, the Valley Review, began publishing in 1878.  Lodi kept progressing even though a fire in 1887 destroyed the downtown area along Sacramento Street.  In 1891, water and gas service was provided and electric service came ten years later.  By 1895, Lodi had a volunteer fire department but law enforcement was supplied by the county and the township until 1906.  A library was finally established in 1901.  The Central California Traction Company began electric trolley service through Lodi in 1907.  That was also the year of the Tokay Carnival which was held to promote Lodi’s most famous product, the Flame Tokay grape…. To read more of the history of Lodi, visit http://www.lodi.gov/city-council/HistoryLodi.html

Today, the  Lodi  area enjoys mild winters and long, relatively rain-free summers, tempered by a ‘Delta breeze’ which comes in from the west, along the waterways, bringing welcome coolness from the Pacific Ocean. As a result, local residents and visitors enjoy a wide variety of outdoor activities in which to participate, from fishing and boating to skydiving, birdwatching, softball or soccer. So don’t forget to visit Lodi  in your home buying search!

2704 Sapphire, Modesto, CA

Join us for an open house! 12p.m. – 4p.m. Saturday June 12th 2010

Come take a look at this beautiful home in Modesto!

$184,900

• Fresh Paint

• Brand New A/C unit

• Located in a great neighborhood!

  

  

Realty World Powerhouse Broker
3421 Tully Road Suite H
Modesto, CA 95350
Office: 209-571-1122

The central valley is hot in the summer. Did you know that each year there are usually between

15 – 20 days that are 100 degrees or hotter? Special cooling centers are only opened during specific heat emergencies, but there are many ideas on how to stay cool on hot summer days.

• Visit friends or family with air conditioning. This is especially important for the very young and the elderly!
• Visit a mall! Modesto, Stockton, & Tracy have very large malls. Spend hours browsing the shops and having a bite to eat!
• Visit any of the local libraries. Most have scheduled reading activities for children. So if your children are young this might be the perfect way to beat the heat with them!
• Visit your local community center. Most center’s have swimming pools that are open to the community. Most have posted life guards and at scheduled times may even offer swim lessons!

If you have any other ideas on how to beat the heat, let us know! Post them in our comments section!

The history of the community of Patterson began with the measuring out of the Rancho Del Puerto and the subsequent grant of the land to the brothers Mariano and Pedro Hernandez on January 20, 1844 , by Manuel Micheltoreno, Governor of the Californias .  This original Mexican Land Grant was for acreage stretching east of the present Highway 33 to the San Joaquin River .  The northern boundary was Del Puerto Creek and the southern boundary was just south of Marshall Road .

Samuel G. Reed and Ruben S. Wade made claim to the land on January 7, 1855 .  A patent encompassing the land grant was signed by President Abraham Lincoln.  Reed and Wade received title to 13,340 acres on August 15, 1864 .  They sold the grant to J.O. Eldredge on June 18, 1866 , for $5,000.  He held the title two months before selling it to John D. Patterson on August 14, 1866 for $5,400.

John D. Patterson purchased additional land.  At his death on March 7,1902 , a total of 18,462 acres was willed to nephews Thomas W. and William W. Patterson, executors of his estate, and other heirs.  Two of the heirs, Thomas W. and John D. Patterson bought out the other heirs for the sum of $540,000 cash gold coin and incorporated the Patterson Ranch Company on May 16, 1908 .

According to photographs, the town was laid out and construction including the Center Building and Del Puerto Hotel, were already under by April 1910.

Once the Patterson Colony map was filed with the Stanislaus County Recorder’s office on December 13, 1910 , sales of ranches and city lots began.  Thomas W. Patterson subdivided the land into ranches of various sizes, mostly 5, 10 to 20 acres.  For irrigation he had a plan developed which became known around the world as the first successful lift irrigation system.  It pumped water from the San Joaquin River into a series of canals which delivered water to the farm land. You can read more about this @ Patterson History

Today, Patterson is a growing and thriving town! A wonderful part of our central valley. There you will find the Annual Apricot festival, tons of great shopping locations, and an overall small town charm! Don’t forget  Patterson in your home buying search!

When it comes to the housing market for foreclosures, buyer beware.

“One mistake that we see all the time is buyers going in and assuming all the mechanicals are working,” said Brandon T. Johnson, president of GTJ Consulting in Roseville, Mich., which maintains foreclosed homes. “You have to be careful you don’t get burned that way.”

He recommends that buyers get private inspections on houses they want to buy to avoid surprises such as missing plumbing or water damage.

Here’s a list of 10 things to watch for in foreclosed or vacant homes, from Ross Kollenberg of On-Site Specialty Cleaning & Restoration in Troy, Mich.:

1. Air quality tells a lot about the home’s condition. Air and surface testing is a few hundred dollars well spent.

2. Black cobwebs, greasy gray residue on walls or a strong oily odor means soot damage points to a malfunctioning furnace and requires professional cleaning. It could be a tip-off that there was a fire.

3. Discolored subflooring, which can be checked from the basement by looking above for stains and small holes, indicates mold.

4. In an older home with extensive renovations, check with the city for permits, which will give remodeling details. Be sure disturbed asbestos or lead paint has been remediated by a certified specialist. If the home has four or five major changes, it may not be up to code.

5. Peeling, bubbling and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms); and a musty odor indicate water damage and possibly moisture and mold.

6. Missing sinks, toilets and other fixtures could mean the previous owner took them and didn’t shut off the pipes. If a pipe was cracked during the fixture removal, it could start a slow leak in the wall that is not easily seen.

7. Fungus growth inside cabinets, behind drawers and built-ins could mean water damage. Since water falls down, look for the source above the mold. One trick inspectors use to determine whether there could be hidden water damage is to pull out the kitchen drawers and look inside to see whether the back wall has been rebuilt. If it has, that could mean water damage has been covered up.

8. Excessive painting of every nook, cranny, door and floor may have been done to cover up mold. “When you go to a home that is ‘landlord white’ and the trim is flat, we tell people there is a reason the house was painted this way,” Kollenberg said. “When we see it is over everything, it is a tip-off that it is just covering something up.”

9. A heated house in winter months may show the home was winterized improperly. If that’s the case, pipes will burst and cause water damage.

10. Blocked drains or pipes will cause problems and may have created sewage backups. Check for a

Read more: http://www.modbee.com/2010/05/27/1184886/buyer-beware-understand-as-is.html#ixzz0qCcZj3Yh

Image via Wikipedia

Here in the central valley temperatures  sky rocket to double digits in the summer time! Everyone wants to cool off in the pool, but here are some simple rules to keep yourselves and others safe while in or around a pool!

1. Never leave children unattended. This is the most important of the precautions listed here. Accidents happens quickly and without warning. Even stepping inside to answer a phone call can be enough time for disaster to strike. Did you know that 77 percent of the children who drown had been seen 5 minutes or less before being missed and subsequently discovered in the pool?

2. Take swim lessons. Swimming is an important life skill, one that could save your child’s life. Most local communities offer swimming lessons, but if the cost is not in your budget, then be sure to take on this task yourself. There may never be a more important skill you’ll teach your child.

3. Learn CPR. Every teenager and adult should be CPR certified. Consider these stats from the American Heart Association:

If bystander CPR is not provided, a sudden cardiac arrest victim’s chances of survival fall 7 to 10 percent for every minute of delay until defibrillation.

Effective bystander CPR, provided immediately after cardiac arrest, can double a victim’s chance of survival.

4. If you have young children, then install a pool fence. Be sure it locks securely. This extra deterrent will keep curious kids from finding their way into the pool area.

5. Install a pool cover. As a second line of defense, install a pool cover, so that children are unable to accidentally slip into the water. But never swim with the pool partially covered. Children could become trapped under the cover.

6. Remove toys after use. Why? Children could return to the pool area after swimming to retrieve a toy, or see one floating and reach for it.

7. Use non-slip materials. Be sure to use these materials on the pool deck, diving board and ladders. This is as much for your safety as for your children’s.

8. When using water slides, always go feet first. According to the U.S. Consumer Product Safety Commission (CPSP), “Many severe injuries result from falling on slippery walkways and decks and falling from diving boards and ladders. Diving and jumping into shallow water also are major causes of serious injuries.”

9. Keep electrical appliances away from water. There is a hazard of shock when any electrical device get wet. This includes radios!

10. Be sure baby-sitters have pool safety skills. All baby-sitters should be able to swim, have access to pool safety items such as floats and poles, know CPR, and have phone numbers ready in case of an emergency.

http://realtytimes.com/rtpages/20100531_poolsafety.htm

New York City attorney Edward A. Mermelstein’s “Home Buying Secrets for the Average Joe” are a timely example of his insight for buyers.

Study – Do your homework before you buy. Review the prices of comparable homes in the neighborhood, which can be found on websites such as Zillow.com, PropertyShark.com, StreetEasy.com, HouseValues.com, Trulia.com and others. Keep in mind these numbers sometimes trail the market by several months. A real estate agent can provide the latest sales data.

• Cure your credit – Today’s best mortgage rates require a credit score of more than 700. Learn how to boost your credit score before you apply for a mortgage. Not only will a low credit score cost you more in terms of the interest rate on your mortgage, it could also prevent you from obtaining a mortgage.

Go to AnnualCreditReport.com, the only federal government-sanctioned service for obtaining a truly free credit report from one or all three of the major credit bureaus. On AnnualCreditReport.com, select your state and hit the red “Request Report” button and follow the instructions. The report is free, but you will have to pay a nominal fee to get your credit score.

• Bid low – In many of today’s buyers’ markets you can offer 10 to 15 percent below the list price because prices are based on contracts signed three to four months ago. List prices don’t necessarily reflect the most current values, especially in markets still on the decline, according to Mermelstein.

• Consider a ‘Lucky 7′ loan – Take advantage of the lower interest rates available with a 7/1 adjustable rate mortgage (ARM), when compared to a fixed-rate 30 year mortgage. The interest rate on a 7/1 ARM is fixed for seven years. In the eighth year the loan resets as an ARM. Just be sure you know what the margin, life cap and periodic caps will be beginning in the eighth year to avoid surprises. Use those seven years to reduce debit and increase your income in preparation for what is likely to be a much higher rate than your starting rate.

Mermelstein also says to consider 30/15 year mortgages which are fixed for 15 years, amortized over 30 years and due in full in 15 years.

These and other mortgage options come with lower starting rates as a hedge against interest rates rising in the near future.

• Get pre-approved – Go beyond prequalifying for a mortgage, which only tells you what you can likely borrow. Get a pre-approved mortgage and you’ll know your home price shopping parameters. You’ll also present yourself to the seller as a serious buyer. Financing in hand will also help level the playing field with all-cash buyers and investors and it will help you negotiate a better purchase price.

• Consider a newly built home – The new home sector has been harder hit than resales. Concessions and reduced prices are the norm. The latest U.S. Census Bureau data reveal that sales of new homes fell for the fourth consecutive month in February, to a seasonally adjusted annual level of 308,000 sales – a year-over-year decline of 13 percent and the lowest level ever. Just be sure to check out the reputation of the builder.

• Inspect everything – Get a home inspection for a new home, a resale home, a nearly new home or a very old home. Always. Just because it’s new doesn’t mean it’s defect free. Hidden problems can torpedo the value of your home.

• Read the title report – Make sure that any new additions or construction to an existing home are fully permitted and recorded with the local municipality.

• Check the appraisal – Likewise check the appraisal report for any oversights, missed features or other errors that could cause the property to be undervalued.

• Negotiate – Don’t be afraid to dicker. It’s a buyers’ market. Concessions are available from both new home builders and existing home sellers. Ask for help with the closing costs, repairs, even furnishings and other perks. Motivated sellers have much to offer.

• Don’t skimp on the help – If you look for the least expensive attorney, real estate agent, inspector, etc., you will get what you pay for. Ask family, friends, co-workers, realty professionals and others you trust for referrals and then carefully vet them.

http://realtytimes.com/rtpages/20100513_secrets.htm

http://www.cityofwaterford.org/Around%20Town2.jpg No matter where you are located in the central valley you can always find something to do this summer!

Visit the city of Modesto’s Summer 2010 Activity guide. Activities range from Sports to Crafts! There’s something for everyone!

http://www.ci.modesto.ca.us/prnd/activityguide/

Turlock Recreation Services strengthens the community’s fabric, health and well being, economic base and security. Through the years, the Turlock community has valued neighborhoods, natural places where they can relax, walk, recreate and enjoy family time. Through quality programing and implementation, Recreation Services provides safe, supervised activities residents of all ages.

http://www.turlock.ca.us/citydepartments/municipalservices/recreation/

Activity guide for the city of waterford

http://www.cityofwaterford.org/Around%20Town2.jpg

There are lots more activities guides to choose from, visit your city’s website and find activities in your area!!