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According to the real estate report released Thursday November 20th, 2008. With banks unloading a record number of foreclosures, bay area home sales soared, while the median price plummeted. With the numbers in, our hypothesis is now a fact. I hate to say it, but this is exactly what we expected.

Despite an economic crisis and a stock market plunge, the fire-sale prices pulled more buyers into the market. A total of 5,624 resale homes changed hands in the nine-county Bay Area in October, up 66.2 percent from a year ago.

The Bay Area median price hasn't been this low since October 2001, when it was $370,000. However, the median's tumble reflects more the swing to lower-priced homes in lower-priced areas where foreclosures are commonplace, rather than an across-the-board depreciation. This doesn't mean every Bay Area house has gone back to 2001 levels, but it does tell an interesting story about where people are buying, and where they are not.

Most of the action, and the big bargains, were in areas where bank repossessions have become a fact of life. Almost half of all existing homes sold were foreclosures. Their bargain-basement prices sent the median price tumbling 45 percent during the past year to $375,000. This is all according to research firm MDA DataQuick of San Diego.

During the boom years, prices in lower-cost areas appreciated as subprime buyers rushed in. With the bay area in a buying frenzy it's time for you to secure a cost effective location that will outlast these economic hard times. The Brentwood Business Center specializes in finding you great deals in this crazy real estate market. Our knowledgeable staff is a phone call away.

If you haven't been following the news, Fannie Mae just made a huge announcement regarding its' policies and regulations regarding bankruptcies, foreclosures, conversion of principle residences to investment property or second homes, and representation and warranty requirements.

The most significant policy change is the incorporation of a "short sale" policy. Fannie Mae calls this a "pre-foreclosure sale". The difference between this and a normal sale, is the fact that the entire amount of the loan is not satisfied in the "short sale" process. In the past, Fannie Mae had not differentiated between short sales and foreclosures for consideration for future loans. The rule for both situations was that no loans would be accepted for people that had a foreclosure or short sale in the previous five years.

The new Fannie Mae policy states that foreclosures must be seasoned for five years. In addition, short sales must be seasoned for two years. FM is making a significant statement by acknowledging the short sale. In essence, they are encouraging home-owners to work with banks, and to entice them not to "walk away" from their mortgage troubles.

Fannie Mae also released updated underwriting guidelines for new mortgage loans that directly address individuals with various types of foreclosure history. Potential borrowers with a foreclosure on their credit record must wait 5 years to be considered for new funding, and are subject to additional credit and down payment requirements for 5 to 7 years. Deed-in-lieu-of-foreclosures warrant a 4 year wait with additional requirements for 4 to 7 years. Finally, short sales require only a two year wait with no additional requirements. These new guidelines make short sales a more attractive option for homeowners as well as provide realtors with a tremendous opportunity to assist distressed homeowners with a short sale and future home ownership. This information can be very valuable when meeting with short sale prospects.

Download the latest Fannie Mae guidelines here.
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

While foreclosures are on the rise many business owners renting their location have found themselves in bad situation. The building owner has not paid the note, and the bank is foreclosing, leaving them scattering for a new location. With moving costs and down time, so businesses are closing their doors completely. If you know of someone who is underwater and struggling to keep up with their higher payments, or is being forced out of their building, tell them you know a business park who can help.

It's important in this economy for agents to educate consumers about both of our roles in a real estate transaction.  The Internet has more than enough information to help buyers identify neighborhoods they're interested in exploring further, so I explain to clients that they don't need an agent to begin the first part of their property search.  From that point on, however, an experienced, professional agent is must have. An agent without knowledge of the property he is showing can be seen right off the bat. At the Bentwood Business Center we pride ourselves with keeping our tenants knowledgeable and aware of the property details & amenities that we offer. For those of you who are looking for a new facility to relocate your business be sure to read over what BBC offers.

*  Full Commission!
* 3 Months Free Rent!
* Brentwood's Auto and Industrial Hub
* Light industrial, warehouse and automotive
* Sizes from 1,200 to 16,500 SF
* Located on Valdry Court, one block south of Balfour Road and Highway 4 Intersection
* Spaces prepared for immediate occupancy
* Small offices, large warehouse and 10′ truck door in each unit
* On busiest commute artery in and out of Brentwood
* Parking : Available for each unit
* Adjacent to nearby restaurants, Holiday Inn Express, Ace Hardware and other retail services