Mortgage rates are at their best levels for 2011.   The increasing possibility of a double dip recession is the main impetus for this rally in the bond market.   Seeing the 30 year fixed rate conforming at 4.25% at 0 points and jumbo conforming at 4.375% at 0 points.   The fixed 5/1 ARM is at the 2.625% - 2.75%  If you haven't refinanced yet, you should strongly consider it. 

Below you will find the foreclosure timeline for the state of California.   Most foreclosures are taking much longer.    There are a number of reasons for the foreclosure process taking longer than the required minimum statutory requirements such as:   lenders are overwhelmed with the number of defaulting homeowners, homeowners fighting back through legal options available, and lender bias in favoring short sales vs. foreclosures. 

If a condominium is in litigation, it is tough for a homeowner to refinance or potential Buyer to obtain financing to purchase a unit.   I thought it was impossible to obtain financing with a HOA in litigation as most  lenders will decline a loan application for a condo in litigation.  

I have found one lender that specializes in financing condos with litigation.   The interest rates appear to be at least 1/2 percent higher in rate than conforming rates (FNMA and FHLMC backed mortgage rates).    This seems like a reasonable tradeoff given the increased risk.    30 year fixed rate terms are also available.
  
There are condo's for sale at substantial discounts due to HOA litigation.   For some Buyers, it might present a potential opportunity to purchase a home at a substantial discount where the values might rebound significantly after the litigation is resolved.    The risks are high and each condo litigation issue needs to be thoroughly analyzed to determine the litigation issues, severity, longevity of the litigation, cost to remedy, potential assessments, attorney fees, repairs and its impact on quality of living....

Financing is available for condos with litigation in California, Silicon Valley, Santa Clara County and within cities such as San Jose, Santa Clara, Campbell, Los Gatos, Cupertino, Sunnyvale, Mountain View, Los Altos, and Palo Alto.  

I'm seeing the conforming 30 year fixed rate hit 4.375% at 0 points for some borrowers.    Bond market rallying on news of a slowing economy (low job creations, possible double dip in the housing market, manufacturing down, some earnings are down for some large corporations....).  

Just made an offer this week on a Sunnyvale single family home.   The home was listed for less than a week and 7 offers were already submitted.   The home is no longer available and is now in pending status.   The home is expected to close above the listing price.

The home is located in a neighborhood with access to the better schools in Sunnyvale (Cherry Chase Elementary, Sunnyvale Middle and Homestead High School).  
Inventory levels are very low for homes connected to these schools.
 
We are entering the spring season where more inventory is expected to hit the market but it appears the attractive neighborhoods, such as Sunnyvale, Cupertino, Mountain View, Los Altos, Palo Alto, Saratoga, Los Gatos, Cambrian, Almaden with good schools will be a Sellers market.    If you are planning to compete in these neighborhoods, be prepared to be more aggressive in your offers.

The most recent national survey of mortgage rates show that 30 year fixed rates average is  5.00%+.    We are expecting mortgage rates to continue to rise as the economy improves, inflationary pressures and the ballooning of the our federal deficit.   See the most recent results here.

Rising rates will impact several areas:  reduced the number of refinances and lower the affordability of home purchases.   I expect home sales will be negatively impacted by marginal increases to interest rates but not as  much as some expect since the overall health of the economy, jobs and consumer confidence will have a greater impact.

You may have been hearing more about chromium in the water you drink.    What is Chronium 6?   What is Chronium 3?   You may recall Chronium 6 when it was brought to the forefront with the Erin Brockovish versus PG&E movie. 

Chromium 3 is naturally found in food and is an essential human nutrient.  However, Chronium 6 has been found to be a carcinogen.   Here is a fact sheet link on chromium (click here).

Hopefully California will soon set a standard for testing Chronium 6.   San Jose Water  tested for chromium several times over the past decade at some of their drinking sources.     They have reported a summary of their results online (click here).

The EPA and California have not established monitoring requirements for Chronium 6.   Both the EPA and California are studying the issue and hopefully effective monitoring standards are established sooner than later.

What can you do protect yourself from Chronium 6?  An effective water filtration system is the way to go.    One source suggested the more expensive reverse-osmosis filtration systems were more effective than inexpensive carbon filters or tap faucet filters.   See CBS article (click here).

Good news for the housing market.   Conforming and high balance conforming loan limits have been established for 2011.     Loan limits have not changed.    For Silicon Valley, conforming loan limit continues at $417,000 for 1 unit residences.    For high cost counties, the top tier,  1 unit residences will continue to be $729,750 till 9/30/2011.     See link here.

Obama signed legislation to extend the high cost jumbo conforming loan limits up to $729,750 for high cost counties.   The extension takes it to end of 2011.    This is great news for Silicon Valley and other high cost counties as we all work our way through the housing crisis in the U.S.