Pets Are Innocent Victims

Sad news from the Central Valley. An unexpected repercussion from the mortgage crisis and increasing foreclosures are the unprecedented numbers of abandoned dogs, cats and other pets that are being left behind when homes are foreclosed upon. A shocking number of homeowners are just walking away, leaving dogs tied up in the yard, cats in the garage and rabbits, turtles and lizards in children's bedrooms.
Stockton and Modesto have some of the country's highest foreclosure rates, and shelter operators are finding it impossible to save most of these animals. Pet adoptions are more rare in difficult financial times, and even those families able to stay in their homes aren't bringing home puppies and kittens.
I recently saw a PBS special called "Life After People," and one of the most touching segments was the initial condition of house pets who were left alone and unable to survive without the humans who had made them dependent on their love and care.

Don't Sue the Realtor

A lawsuit taking place in the San Diego area reminds me of the old saying, "Don't shoot the messenger." Just as stockholders tried to sue investment companies when their portfolios lost value during the dot-com bust, a homeowner is suing her Realtor in a declining real estate market. She claims that the five year old luxury home she bought wasn't the "good buy" that they were told it was. Much emphasis is being placed on the appraisal, As I learned in my college appraisal classes, appraisal is an imperfect science, often subjective in nature.
The lender decides who will do the appraisal, and the real estate agent sometimes assists the appraiser in providing documentation that will make sure the number comes in at the right point for the deal to close.
In the sub-prime scandals, some lenders pressured appraisers to come up with the "magic" number that would get the deal closed. They even threatened to withhold business if the appraiser didn't conclude that the property was worth what the buyer was willing to pay.
But this lawsuit seems to be more a case of "sour grapes"...buyers who purchased a home at the top of the market and need a scapegoat as they watch property values decline.

The Time to Refinance May Be Coming Soon

All those phone calls that you've been getting from "hungry" mortgage brokers may be worth listening to pretty soon. The proposed yearlong increase in conforming loan limits will be coming as soon as the federal economic stimulus package is approved.
As of this morning, the new limits expected for California will probably be $625,000, up from $417,000. Because interest rates for these Conforming loans is much lower than so-called Jumbo loans, (and may move even lower when the Fed lowers the prime rate again at the end of this month) you can expect a rush of new refinancing when the bill is passed.
Sue-Baker Dirickson, our in-house lender, advises homeowners with loan amounts in the $425,000-$625,000 range to start their paperwork now, so that they can be first in line to take advantage of these new lower rates...not a bad idea!

I Voted Today

I sent my absentee ballot in this morning, and it made me think about what will face the candidate who wins next fall. Certainly, the economy will not magically turn around by January of 2009. Even though the last two recessions were short-lived, it will take a while for any turnaround to take place. The budget deficit will see to that.
Daniel Gross, in a recent article in Newsweek Magazine, reminds us that the slowing economy brings its own set of problems...higher spending on unemployment benefits, and greater demand for social services, coupled with lower tax revenue. A worse fiscal picture will make it hard for the new president to keep his or her campaign promises, whatever they are.
Gross goes on to say that "the current crises in housing and credit aren't nearly as bad as the situation that Ronald Reagan inherited in 1981, when mortgage rates were nearly 15 percent."

California's Economy...Slowdown or Recession?

Steven Levy, director of the Center for Continuing Study of the California Economy says that the state is about to begin what should be a short and mild recession. More importantly, he expects housing to hit bottom sometime in 2008. He thinks that the half million new residents expected in California every year will use up existing inventory pretty quickly.
Employment in the state may be down somewhat...The unemployment rate increased from 4.8 percent a year ago to 6.1 percent last month....but analysts are not expecting a deep recession like those of the early '90's and 2000/2001. These were caused by industry-related losses. In the nineties, it was aerospace, and at the turn of the century, the end of the dot-com boom was the villain. Levy says, "None of our lead industries in terms of our economic base are threatened."
It's nice to read some hopeful news, even if it's not a magic solution to the economy's problems.

Gutter Clog Prevention

Sitting at the computer and watching the heavy rain come down, I can't help but realize how timely a recent email from Mr. Handyman is.
Since clogged gutters cause water to pool in the gutters, roof shingles often dip into the gutters. If the gutter fills with water, the water will wick up the shingle, getting between shingle and and the roof sheathing, and then wood rot can start.
At the very least, clean your gutters every fall before it starts raining.
The next level of protection are anti-clog devices you install in your gutters on the downspouts. They don't prevent the gutters from clogging per se, but do prevent the downspouts from getting clogged. Cleaning clogged gutters is easier than cleaning clogged downspouts. One type of these anti-clog devices is the Wedge downspout screen, but the ultimate in anti-clog devices is the RainTube gutter protection system. This mechanism is Green as it's made from recycled milk jugs. You install it in your gutters once, and your gutters never clog again. Even better, you avoid the possibility of water wicking under your roofing shingles...a very good thing.

It's Not Easy Being Green

What takes priority...trees or solar panels? Well, it seems that in Sunnyvale California, despite its stringent tree ordinance, solar panels win. At least that's the decision of the Santa Clara County Superior Court.
The original law was signed by former Governor Jerry Brown, and would normally affect only those trees planted after a neighbor's solar panels are installed, but in the case now being appealed, it can also apply to trees and shrubs that later grow big enough to shade the next door neighbor's solar panels.
Two big, beautiful redwoods are the trees named in this controversy, and the sad part of the situation is that both neighbors are sincere environmentalists. One owns a Prius and the other an electric car. The Libertarians might say, "Your rights end where mine begin," but in this case both parties seem to have right on their side.