By Ed Fletcherefletcher@sacbee.com
The Squeeze Inn, one of Sacramento's best-known hamburger dives, has gone uptown by opening a third location this week, in Roseville.
The majority of Roseville's recent restaurant openings have been national chains. The Squeeze Inn, at 106 N. Sunrise Ave., adds diner fare to the mix.
The new location is owned by two longtime Squeeze with Cheese aficionados who are trying to make the shift from patron to proprietor.
To prepare for this week's opening, co-owners Charles Rogers and Keith Lenheart stole time away from their jobs at Skatetown in Roseville to pull shifts at the south Sacramento location.
"It was nice to be on the other side of the counter making it instead of eating it," Rogers said.
On Wednesday, Rogers was the problem solver as his team of a dozen cranked out burgers for a hungry mix of first-timers and longtime fans.
Lenheart was on the griddle dropping cheese by the handful to form the "cheese skirts" that earned its mention on the Food Network show "Diners, Drive-ins and Dives."
By noon, the line to order was 12 deep and growing fast.
Joe Fassler of Fair Oaks brought his buddies, both first-timers.
"It's not health food," said Brian Buhl of North Highlands.
Having made the trek to the south area for a Squeeze Inn burger before, Fassler and his two friends arrived early. Despite getting in the door by 11:45 a.m., they didn't eat until 12:30 p.m.
Compared to the original location with only 12 stools indoors, that might be called progress. The new franchisee location is a converted Round Table in a strip mall on the corner of Sunrise Avenue and Douglas Boulevard. It's squeezed in among an orthodontist's office, a paper supply company and a place selling hearing aides.
Rogers said he wasn't surprised at the early turnout. "Squeeze Inn has a big following," Rogers said.
Early marketing was all through social networking and word of mouth.
"I've been a follower on Facebook for a few months now, waiting for them to open in Roseville," Fassler said.
In February, the south Sacramento location moved from 7916 Fruitridge Road to 5301 Power Inn Road after co-owner Travis Hausauer chose to find a new site rather than face a disability lawsuit. The restaurant also has a Galt location.
Monday, May 31, 2010
Friday, May 28, 2010
Dave & Buster's to open restaurant in Roseville
By Ed Fletcherefletcher@sacbee.com
Roseville will welcome another signature eatery to its lineup of restaurants when Dave & Buster's opens its first Sacramento-area establishment.
For the uninitiated, Dave & Buster's is like a Chuck E. Cheese for adults – except that kids are allowed.
So it's like a Chuck E. Cheese with a full bar and menu.
The restaurant officially opens at 11:30 a.m. Monday at the Fountains shopping center, 1174 Roseville Parkway. At 17,000 square feet, it is one of the smallest of the Dallas-based chain's 57 restaurants.
Chris Merino, who got a sneak peek at the restaurant Thursday, would have preferred one closer to the mammoth, 65,000-square-foot establishment in San Jose, but he was plenty happy nonetheless.
"I've been waiting for years for them to open one here," said Merino, who tried out some of the 300 video and parlor-type games at the eatery.
Kids are welcome when accompanied by adults, but it's kids like Merino, 38, who are the target audience.
"I'm still a kid; I love playing this hoops game," he said. "I was a video game kid … Pac-Man and Asteroids."
Dave & Buster's video games emphasize action, from shooting, to racing, to Whac-A-Mole, to dancing games.
Parlor games reward players with tickets that can be redeemed for prizes.
If televised action is what you want, General Manager Brandon Ball said they have you covered.
"We're flooded with TVs throughout, so it's a great place to watch the game," Ball said.
Thursday, dozens of the restaurant's 165 employees were put though their paces with the grand opening just days away.
With the down economy, Ball said there were plenty of qualified people among the 3,000 who applied for jobs. He even had a lawyer and real estate agent apply, Ball said.
Dave & Buster's moving to Roseville is a case of the rich getting richer.
A recent survey of 18 local governments, including Sacramento, Yolo, El Dorado and Placer counties, and 14 cities found that Roseville trails only Placerville in sales tax collections per resident.
At $278 per person, Roseville takes in more than double the city of Sacramento's per capita take of $126.
The Fountains at Roseville also boasts a McCormick & Schmick's, a California Pizza Kitchen and Tres Agaves restaurants, among others.
Roseville will welcome another signature eatery to its lineup of restaurants when Dave & Buster's opens its first Sacramento-area establishment.
For the uninitiated, Dave & Buster's is like a Chuck E. Cheese for adults – except that kids are allowed.
So it's like a Chuck E. Cheese with a full bar and menu.
The restaurant officially opens at 11:30 a.m. Monday at the Fountains shopping center, 1174 Roseville Parkway. At 17,000 square feet, it is one of the smallest of the Dallas-based chain's 57 restaurants.
Chris Merino, who got a sneak peek at the restaurant Thursday, would have preferred one closer to the mammoth, 65,000-square-foot establishment in San Jose, but he was plenty happy nonetheless.
"I've been waiting for years for them to open one here," said Merino, who tried out some of the 300 video and parlor-type games at the eatery.
Kids are welcome when accompanied by adults, but it's kids like Merino, 38, who are the target audience.
"I'm still a kid; I love playing this hoops game," he said. "I was a video game kid … Pac-Man and Asteroids."
Dave & Buster's video games emphasize action, from shooting, to racing, to Whac-A-Mole, to dancing games.
Parlor games reward players with tickets that can be redeemed for prizes.
If televised action is what you want, General Manager Brandon Ball said they have you covered.
"We're flooded with TVs throughout, so it's a great place to watch the game," Ball said.
Thursday, dozens of the restaurant's 165 employees were put though their paces with the grand opening just days away.
With the down economy, Ball said there were plenty of qualified people among the 3,000 who applied for jobs. He even had a lawyer and real estate agent apply, Ball said.
Dave & Buster's moving to Roseville is a case of the rich getting richer.
A recent survey of 18 local governments, including Sacramento, Yolo, El Dorado and Placer counties, and 14 cities found that Roseville trails only Placerville in sales tax collections per resident.
At $278 per person, Roseville takes in more than double the city of Sacramento's per capita take of $126.
The Fountains at Roseville also boasts a McCormick & Schmick's, a California Pizza Kitchen and Tres Agaves restaurants, among others.
Monday, May 24, 2010
Lincoln welcomes highway bypass but worries about downtown
Downtown Lincoln's historic main street boasts picturesque brick buildings, quaint shops and one gnarly traffic jam.
Thousands of commuters and truckers rumble through each day on old Highway 65, kicking up dust and noise and generally making G Street – as it's known in town – a place locals don't care to go.
Soon, though, this traffic stream will be diverted.
Caltrans is well into building an 11-mile highway to the west that will bypass downtown Lincoln. Opening day is slated for sometime in 2012, and could knock G Street traffic from 31,000 vehicles a day down to 18,000.
City officials and G Street merchants can't wait. Almost none of the pass-through traffic stops to spend money in town, they say.
But when the cars leave, a question remains: Will Lincoln residents and other visitors return, or will the downtown struggle even more as fewer people pass by?
Bypass roads have weakened downtowns across America. Lincoln leaders need only look to Sutter Creek to know they face a challenge. The state recently built a Highway 49 bypass. Sutter Creek Mayor Gary Wooten calls the results a mixed bag.
"Downtown is more peaceful," he said. People can cross the street without worrying about getting hit by a truck. But we've lost business."
Sutter Creek officials have put up signs at the turnoff encouraging drivers to come visit.
Lincoln leaders say they're convinced their bypass will be a blessing, but only if the city takes action now to bolster downtown. The city has hired consulting firm Gruen Gruen & Associates of San Francisco to write an action plan. The company will offer the city preliminary ideas next month.
When the bypass opens, the state will decommission the old highway and turn ownership of G Street over to Lincoln.
Mayor Tom Cosgrove said the city needs to mold a distinct personality for its historic core, which got its start in 1859 as the terminus for a rail line into Sacramento. City incorporation came in 1890.
"We want it to be a place, for lack of a better word," Cosgrove said. "I'm hoping, anytime of day or evening, we can see people on the streets."
The city's seven-block downtown contains attractive brick buildings that have been restored – some with significant city loans. But there are also vacant storefronts and restaurants.
Some are casualties of the recession, which has hit this once high-flying city hard. But the economy isn't the only force at work.
G Street also is suffering because of competition from newer, bigger stores, such as Target and Home Depot, in shopping centers on the south side of town, and in Roseville and Rocklin.
The city population boomed in the last decade from 10,000 to 41,000. Yet downtown's share of the city sales pie fell in that time from 93 percent to 20 percent, and total sales in downtown are down.
Competition won't lessen in the future. The city plans regional shopping centers hugging the bypass to the west in coming decades, as well as smaller retail outlets mixed with new residential villages. A Walgreens is planned for later this year on the south side of the city.
Lincoln's task, when the new road opens, is to woo its own residents back downtown by offering something they can't find in the big box stores and shopping centers along Highway 65, consultant Aaron Gruen says. That may be difficult, since most are newcomers who never had a connection to downtown in the first place.
"They didn't grow up there," Gruen said. "They don't have memories of going to the shoe store downtown with Mom and Dad."
But Lincoln's downtown has positives to build on, Gruen said. It has personality and history. It's compact and walkable. It feels safe. Rents are low, and it will remain centrally located as the city grows.
It could be a place, Gruen said, for professonals to rent small offices. It could be a center of nightlife, dining and art.
"The downtown should almost be the anti-mall," he said.
While the city lacks money for a major redo, Gruen said it could do some small things right away to make G Street feel more friendly, like washing traffic grime off the sidewalks, putting in streetlights and adding diagonal parking.
Downtown business owners talk about farmers markets, festivals and parades.
Fashion Fo Paws shop owner Crystal Pierson pictures a dog-friendly event on G Street.
"We need to have a pet parade," she said. "We have to be open-minded about things like that. It'll bring people in from everywhere."
One idea: Give downtown distinct entrance points, possibly using terra cotta art inspired by the town's stalwart manufacturer, Gladding, McBean, which set up shop on G Street 135 years ago.
Standing at the corner of 5th and G streets last week, with logging trucks blocking the view across the street, Mayor Cosgrove said he has pushed for the traffic rerouting project for more than a decade, knowing it is the right thing for downtown Lincoln.
"This traffic took control out of our hands," he said. "The bypass gives us the opportunity to plan our future."
Thousands of commuters and truckers rumble through each day on old Highway 65, kicking up dust and noise and generally making G Street – as it's known in town – a place locals don't care to go.
Soon, though, this traffic stream will be diverted.
Caltrans is well into building an 11-mile highway to the west that will bypass downtown Lincoln. Opening day is slated for sometime in 2012, and could knock G Street traffic from 31,000 vehicles a day down to 18,000.
City officials and G Street merchants can't wait. Almost none of the pass-through traffic stops to spend money in town, they say.
But when the cars leave, a question remains: Will Lincoln residents and other visitors return, or will the downtown struggle even more as fewer people pass by?
Bypass roads have weakened downtowns across America. Lincoln leaders need only look to Sutter Creek to know they face a challenge. The state recently built a Highway 49 bypass. Sutter Creek Mayor Gary Wooten calls the results a mixed bag.
"Downtown is more peaceful," he said. People can cross the street without worrying about getting hit by a truck. But we've lost business."
Sutter Creek officials have put up signs at the turnoff encouraging drivers to come visit.
Lincoln leaders say they're convinced their bypass will be a blessing, but only if the city takes action now to bolster downtown. The city has hired consulting firm Gruen Gruen & Associates of San Francisco to write an action plan. The company will offer the city preliminary ideas next month.
When the bypass opens, the state will decommission the old highway and turn ownership of G Street over to Lincoln.
Mayor Tom Cosgrove said the city needs to mold a distinct personality for its historic core, which got its start in 1859 as the terminus for a rail line into Sacramento. City incorporation came in 1890.
"We want it to be a place, for lack of a better word," Cosgrove said. "I'm hoping, anytime of day or evening, we can see people on the streets."
The city's seven-block downtown contains attractive brick buildings that have been restored – some with significant city loans. But there are also vacant storefronts and restaurants.
Some are casualties of the recession, which has hit this once high-flying city hard. But the economy isn't the only force at work.
G Street also is suffering because of competition from newer, bigger stores, such as Target and Home Depot, in shopping centers on the south side of town, and in Roseville and Rocklin.
The city population boomed in the last decade from 10,000 to 41,000. Yet downtown's share of the city sales pie fell in that time from 93 percent to 20 percent, and total sales in downtown are down.
Competition won't lessen in the future. The city plans regional shopping centers hugging the bypass to the west in coming decades, as well as smaller retail outlets mixed with new residential villages. A Walgreens is planned for later this year on the south side of the city.
Lincoln's task, when the new road opens, is to woo its own residents back downtown by offering something they can't find in the big box stores and shopping centers along Highway 65, consultant Aaron Gruen says. That may be difficult, since most are newcomers who never had a connection to downtown in the first place.
"They didn't grow up there," Gruen said. "They don't have memories of going to the shoe store downtown with Mom and Dad."
But Lincoln's downtown has positives to build on, Gruen said. It has personality and history. It's compact and walkable. It feels safe. Rents are low, and it will remain centrally located as the city grows.
It could be a place, Gruen said, for professonals to rent small offices. It could be a center of nightlife, dining and art.
"The downtown should almost be the anti-mall," he said.
While the city lacks money for a major redo, Gruen said it could do some small things right away to make G Street feel more friendly, like washing traffic grime off the sidewalks, putting in streetlights and adding diagonal parking.
Downtown business owners talk about farmers markets, festivals and parades.
Fashion Fo Paws shop owner Crystal Pierson pictures a dog-friendly event on G Street.
"We need to have a pet parade," she said. "We have to be open-minded about things like that. It'll bring people in from everywhere."
One idea: Give downtown distinct entrance points, possibly using terra cotta art inspired by the town's stalwart manufacturer, Gladding, McBean, which set up shop on G Street 135 years ago.
Standing at the corner of 5th and G streets last week, with logging trucks blocking the view across the street, Mayor Cosgrove said he has pushed for the traffic rerouting project for more than a decade, knowing it is the right thing for downtown Lincoln.
"This traffic took control out of our hands," he said. "The bypass gives us the opportunity to plan our future."
Friday, May 21, 2010
Sacramento April home sales prices increase from year earlier
More people bought pricier houses in April, signaling the end of Sacramento's bargain basement-only sales scene.
Buyers picked up the pace from last year in Granite Bay, El Dorado Hills and older neighborhoods near downtown Sacramento, researcher MDA DataQuick reported Thursday. Simultaneously, buyers dwindled in Oak Park, North Highlands and other repo zones of the past two years.
What gives?
There are fewer available repos after a long blowout sale, market trackers say. There's also a sense at the higher end that this market is as good as it's going to get for a while.
"Sellers are becoming more realistic (about) what they can get," said Tim Collom, a Sacramento real estate agent who specializes in east Sacramento, Land Park and Curtis Park. "The gap between buyers and sellers is a lot more narrow than last year."
He said he sold three houses this week valued between $350,000 and $800,000.
The shifting sales mix tugged Sacramento County's median sales price for resale houses nearly 10 percent higher than the same time last year, DataQuick reported. The median, where half cost more and half less, was $175,000.
Resale home prices also beat April 2009 levels in Placer, Sutter, Yolo and Yuba counties.
Less than half of Sacramento County's April sales were cheap bank repos – compared with two-thirds a year earlier. With fewer repos this year, sales in the $200,000 to $400,000 range grabbed a larger market share.
"We've had 70 people coming through open houses in the $300,000 to $400,000 range," said Bob Bronswick, president of Coldwell Banker Residential Brokerage in Sacramento and Lake Tahoe.
"That's the trend across the state," said DataQuick analyst Andrew LePage. He said sellers are cutting prices and buyers are still getting low interest rates to make deals work.
"Sellers are not thinking about 2005," said Collom of Windermere Dunnigan Realtors. "They're thinking: 'We might have to take it back to 2003 or 2002 prices and sell it at that.'"
This doesn't mean expensive is back. LePage said homes priced above $400,000 are only a tiny percentage of Sacramento-area sales.
But the shift is part of restoring balance to a market where repos accounted for a majority of sales for much of 2008 and 2009. Banks have cut repossessed homes on the market.
"The way banks are managing it now will probably keep prices from falling much further," said Rick Sharga of Orange County foreclosure analyst RealtyTrac.
Overall, 3,255 homes changed hands during April in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties, DataQuick reported. That was down slightly from March – and fewer than April 2009.
Analysts attributed the slight drop to fewer repo listings for first-time buyers and people delaying escrow closings until May. The state began offering homebuyer tax credits of up to $10,000 May 1.
New homes accounted for 5 percent of sales in the region.
Buyers picked up the pace from last year in Granite Bay, El Dorado Hills and older neighborhoods near downtown Sacramento, researcher MDA DataQuick reported Thursday. Simultaneously, buyers dwindled in Oak Park, North Highlands and other repo zones of the past two years.
What gives?
There are fewer available repos after a long blowout sale, market trackers say. There's also a sense at the higher end that this market is as good as it's going to get for a while.
"Sellers are becoming more realistic (about) what they can get," said Tim Collom, a Sacramento real estate agent who specializes in east Sacramento, Land Park and Curtis Park. "The gap between buyers and sellers is a lot more narrow than last year."
He said he sold three houses this week valued between $350,000 and $800,000.
The shifting sales mix tugged Sacramento County's median sales price for resale houses nearly 10 percent higher than the same time last year, DataQuick reported. The median, where half cost more and half less, was $175,000.
Resale home prices also beat April 2009 levels in Placer, Sutter, Yolo and Yuba counties.
Less than half of Sacramento County's April sales were cheap bank repos – compared with two-thirds a year earlier. With fewer repos this year, sales in the $200,000 to $400,000 range grabbed a larger market share.
"We've had 70 people coming through open houses in the $300,000 to $400,000 range," said Bob Bronswick, president of Coldwell Banker Residential Brokerage in Sacramento and Lake Tahoe.
"That's the trend across the state," said DataQuick analyst Andrew LePage. He said sellers are cutting prices and buyers are still getting low interest rates to make deals work.
"Sellers are not thinking about 2005," said Collom of Windermere Dunnigan Realtors. "They're thinking: 'We might have to take it back to 2003 or 2002 prices and sell it at that.'"
This doesn't mean expensive is back. LePage said homes priced above $400,000 are only a tiny percentage of Sacramento-area sales.
But the shift is part of restoring balance to a market where repos accounted for a majority of sales for much of 2008 and 2009. Banks have cut repossessed homes on the market.
"The way banks are managing it now will probably keep prices from falling much further," said Rick Sharga of Orange County foreclosure analyst RealtyTrac.
Overall, 3,255 homes changed hands during April in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties, DataQuick reported. That was down slightly from March – and fewer than April 2009.
Analysts attributed the slight drop to fewer repo listings for first-time buyers and people delaying escrow closings until May. The state began offering homebuyer tax credits of up to $10,000 May 1.
New homes accounted for 5 percent of sales in the region.
Wednesday, May 19, 2010
Homebuyers rush to claim state tax credits
High numbers of pending home sales suggest California's new $10,000 tax credit for first-time homebuyers will run out as soon as next month, officials said Monday.
Nearly 2,500 buyers have already staked claims to $13.3 million in tax credits since the program's start May 1, according to estimates by the state Franchise Tax Board. That includes 2,040 applications last week. The previous week an estimated 430 buyers applied for shares of a $100 million statewide allocation.
"People respond to financial incentives," said Leslie Appleton-Young, chief economist for the California Association of Realtors, on Monday. "Absolutely, it's going fast."
The pace suggests that initial estimates of the credit lasting just "six to eight weeks," according to tax board spokeswoman Brenda Voet, are accurate. Pending sales of existing homes – those between an accepted offer and close of escrow statewide – are running 20 percent ahead of last year at this time, said Appleton-Young. If last year's history holds true, nearly half are first-time buyers sure to apply for tax credits within days of closing escrow.
The FTB couldn't provide application totals received to date from the capital region.
Voet said a second $100 million allocation for buyers of new unoccupied homes will last longer. But even that "could take as little as six months" to allocate, she said Monday. The FTB had no estimates for those applications.
Late last week, the tax agency began warning first-time buyers that it could take up to an hour to connect to its fax machines due to "the high volume of faxes we are receiving."
The state's popular new housing stimulus follows a similar $100 million allocation last year for buyers of new, unoccupied homes. Nearly 11,000 buyers claimed those state credits within four months, trimming a massive glut of vacant new houses.
Some first-time buyers delayed scheduled April escrow closings until May to qualify.
"We had Realtors in the field say that was happening," said Appleton-Young.
That might be a small, partial explanation for a fall in closed escrows from March to April, said Bob Bronswick, president and chief operating officer of Coldwell Banker Residential Brokerage in Sacramento and Lake Tahoe. He said some buyers managed to snag both the state credit and an $8,000 first-time federal credit that expired April 30.
The FTB said on its website that estimates of applications are tentative and may be overstated given last year's history of duplicate or invalid applications.
The state projects that 17,500 first-time homebuyers will receive tax breaks averaging about $5,700 apiece over three years. An additional 14,000 buyers of new homes will get three-year tax breaks totaling about $7,000 each.
State lawmakers and Gov. Arnold Schwarzenegger approved the tax credits in March to boost home sales and help stimulate a lagging construction economy. Homebuilders have expressed hopes it will revive an industry that's seen construction fall to post-World War II lows. Read more:
Nearly 2,500 buyers have already staked claims to $13.3 million in tax credits since the program's start May 1, according to estimates by the state Franchise Tax Board. That includes 2,040 applications last week. The previous week an estimated 430 buyers applied for shares of a $100 million statewide allocation.
"People respond to financial incentives," said Leslie Appleton-Young, chief economist for the California Association of Realtors, on Monday. "Absolutely, it's going fast."
The pace suggests that initial estimates of the credit lasting just "six to eight weeks," according to tax board spokeswoman Brenda Voet, are accurate. Pending sales of existing homes – those between an accepted offer and close of escrow statewide – are running 20 percent ahead of last year at this time, said Appleton-Young. If last year's history holds true, nearly half are first-time buyers sure to apply for tax credits within days of closing escrow.
The FTB couldn't provide application totals received to date from the capital region.
Voet said a second $100 million allocation for buyers of new unoccupied homes will last longer. But even that "could take as little as six months" to allocate, she said Monday. The FTB had no estimates for those applications.
Late last week, the tax agency began warning first-time buyers that it could take up to an hour to connect to its fax machines due to "the high volume of faxes we are receiving."
The state's popular new housing stimulus follows a similar $100 million allocation last year for buyers of new, unoccupied homes. Nearly 11,000 buyers claimed those state credits within four months, trimming a massive glut of vacant new houses.
Some first-time buyers delayed scheduled April escrow closings until May to qualify.
"We had Realtors in the field say that was happening," said Appleton-Young.
That might be a small, partial explanation for a fall in closed escrows from March to April, said Bob Bronswick, president and chief operating officer of Coldwell Banker Residential Brokerage in Sacramento and Lake Tahoe. He said some buyers managed to snag both the state credit and an $8,000 first-time federal credit that expired April 30.
The FTB said on its website that estimates of applications are tentative and may be overstated given last year's history of duplicate or invalid applications.
The state projects that 17,500 first-time homebuyers will receive tax breaks averaging about $5,700 apiece over three years. An additional 14,000 buyers of new homes will get three-year tax breaks totaling about $7,000 each.
State lawmakers and Gov. Arnold Schwarzenegger approved the tax credits in March to boost home sales and help stimulate a lagging construction economy. Homebuilders have expressed hopes it will revive an industry that's seen construction fall to post-World War II lows. Read more:
Monday, May 17, 2010
Permanent Loan Modification rising slowly in Sacramento
Slightly more than 5,000 struggling borrowers in El Dorado, Placer, Sacramento and Yolo counties have received permanent mortgage modifications, reports the newest look at April loan modification data from the U.S. Treasury Department. Another 380 borrowers in Yuba and Sutter counties have gotten the permanent modifications.The data suggest that ever more people are getting their loans permanently modified through interest rate cuts, longer payback periods and temporary suspension of payments. But the number of people in trial modification payments - the pipeline leading to permanent modifications - is apparently falling. Some fear this may mean fewer people will get help in the longer run.Here is five months of data showing how permanent modifications are rising: Sacramento MSA Yuba City MSADec. 2009 1,156 90Jan. 2010 2,078 159 Feb. 2,921 213March 3,882 296April 5,019 380(Sacramento MSA: El Dorado, Placer, Yolo, Sacramento counties)(Yuba City MSA: Yuba and Sutter counties)Here now is the number of active trial modifications in place by month. As you can see these numbers are falling locally. Home Front hasn't been able to analyze this fully yet, but it would seem to suggest that fewer people are getting into the modification process period. That seems to follow some of the criticism implied in articles that the government loan's modification program is running out of steam. Is this how you're reading it? Here's the number of loans in trial modification programs in recent months (usually for three to six months, a test period for possible permanent modifications). Sacramento MSA Yuba City MSADec. 2009 11,848 908Jan. 2010 12,346 941 Feb. 12,450 956March 11,653 884April 9,624 727According to the report most of these permanent modifications are reducing monthly payments by an average of $500. They include lowered interest rates, longer periods to pay off the loan and temporary suspension of payments.
Friday, May 14, 2010
Selling Short Sale can be scary
As attempted short sales proliferate across the capital region, many people are worried about bad things that might happen to them – even if they succeed in selling.
Foremost among worries are nasty state tax bills for forgiven debt. With short sales, banks take less than they are owed to avoid the high costs of foreclosing. And governments typically have taxed that kind of forgiven debt as extra income.
Home Front checked this week into the status of legislation that would get people off that hook. As many know, the federal government already has ordered the IRS not to tax forgiven mortgage debt through the end of 2012.
The state of California did the same last year with Senate Bill 1055. It told the Franchise Tax Board not to tax forgiven mortgage debt through the end of 2008. So what about 2009 and beyond? Two bills to extend the protection through the end of 2012 – Assembly Bill 111 and SB 97 – are parked in Assembly and Senate revenue and tax committees.
Technically, if they don't pass, people who do short sales in 2009 will owe taxes on that forgiven debt on April 15, 2010. But don't fret yet; SB 97, at least, by Sen. Ron Calderon, D-Montebello, provides an out.
Even if passed after April 15, "the bill says there are no penalties or interest imposed for failure to pay," said Eileen Newhall, consultant to the Senate Banking, Finance and Insurance Committee. In other words, if the bill passes after the tax filing deadline there are no tax problems for those who do short sales in 2009. (Again, this is only for people who own and occupy their homes, not for investors.)
There's another out, which also applies to investors, said Linda Hainsworth of Sacramento. She conducts classes on short sale complexities for other real estate agents.
"There's an exemption if you're insolvent," she said. The definition of insolvency is tricky, she added, so advice is best taken from a tax attorney.
A second concern
People trying to do short sales also are worrying about reports that some lenders are selling second mortgages – typically the down payment loan – to collection agencies. They fear that in three or four years those agencies will be on the phone seeking payment.
Hainsworth confirmed it's happening. Elk Grove bankruptcy attorney Jonathan Stein said the owner of a "second" has up to four years after the default date to collect. He said it's critical that your real estate agent negotiates a solution to the second.
Stein fears some people will rebuild credit scores after the hit of a short sale only to file bankruptcy when confronted later by a collection agency.
Both offer the same counsel: get good advice about that short sale.
Credit extension in limbo
So, what's the newest on extending $10,000 state tax credits to more buyers of new unoccupied homes in California? The short answer: nothing.
As you'll remember, the Franchise Tax Board stopped taking applications July 3, while home builders and lawmakers tried to work out a deal to extend the tax credit to thousands more buyers. But lawmakers left for summer vacation without a deal.
None of three bills dealing with extending the credit – AB 765, SB 49 and SB X3 38 – shows signs of changes to make it happen. Staffers say to check back after Aug. 17. Meanwhile, the Franchise Tax Board has awarded certificates worth $70.9 million so far to 7,567 new homebuyers.
Getting back to good
One new housing project at a time, the capital region is restabilizing. One project that's finally gone all the way is North End Lofts at 14th and C streets in the Mansion Flats district of downtown Sacramento. It's an 11-unit loft project that started in 2006 with sales prices in the $400,000s. As the housing bust settled in, the developer lost the project to the bank, which recently slashed prices to the low $300,000s.
Thursday, property managers Frank Sherman and Cory Smith were finishing the interior of the last unit sold. The project is an anchor now in a neighborhood that needs it.
New occupants include Lynn Mayo, who moved to Sacramento from Portland.
"They're really nice," she said of the three-story lofts. "Hopefully, this will be an up-and-coming neighborhood."
Also just arrived are Sacramento artist John Krempel and architect Phil Harvey. They sold their house in Land Park and moved downtown.
"We've been looking for something like this for a long time," Krempel said.
Wednesday, May 12, 2010
California Tax Law unsettled on Home sellers Short Sales
Sacramento-area accountants say rising numbers of taxpayers who did short sales or received loan modifications in 2009 now fear they'll be walloped anew by a cash-starved state government intent on taxing their forgiven debt.
It's impossible to ease the fears or specifically answer many questions, these accountants say.
"We've had quite a few clients fall into that category," said Roman',Times,serif; FONT-SIZE: 15px; CURSOR: pointer; FONT-WEIGHT: 400" class=" lingo_link lingo_link_hidden" href="http://topics.sacbee.com/Jennifer+Neronde/" rel=nofollow>Jennifer Neronde, office manager at Rocklin-based Cramer and Associates CPA.
Uncertainty reigns with less than six weeks before the April 15 filing deadline because the forgiven debt question has gotten caught up in a larger tussle over business taxes between the Legislature and Gov. Arnold Schwarzenegger.
It's headed for a Capitol showdown next week.
Monday, the Assembly is scheduled to vote on SB32 X8, a bill by Sen. Lois Wolk, D-Davis, that would ban the state from taxing mortgage debt forgiven in 2009.
But Schwarzenegger is threatening to veto the bill over an obscure clause opposed by business groups. That clause establishes new tax penalties on firms that file unfounded claims for refunds. Business associations believe it will unfairly punish them for tax withholding decisions they claim are difficult to calculate. The clause, along with forgiven mortgage debt, is among dozens in the bill to align Roman',Times,serif; FONT-SIZE: 15px; CURSOR: pointer; FONT-WEIGHT: 400" class=" lingo_link lingo_link_hidden" href="http://topics.sacbee.com/California/" rel=nofollow>California's tax codes with federal codes.
The governor wants the business penalty provisions stripped from the bill, said his spokesman Mike Naple.
"The governor would prefer that the provision be taken out of the bill and addressed in separate legislation," Naple said.
The state gave homeowners who occupied their homes a pass on forgiven mortgage debt in 2007 and 2008. The federal government, meanwhile, has backed off on taxing forgiven mortgage debt through the end of 2012. In the past, both branches of government treated forgiven debt as taxable income.
In a short sale, for instance, a lender might accept a sales price of $200,000 on a home where it's owed $325,000. The $125,000 left unpaid is classified as forgiven debt, which used to qualify as new taxable income. The Bush administration, backed by the real estate industry, blocked the IRS from taxing forgiven debt in 2007. It's a temporary measure to encourage borrowers to call lenders and negotiate alternatives to foreclosure.
In many cases, borrowers try short sales after they fail to get loan modifications, say real estate agents like Larry Henderson, of Prudential Norcal Realty in Carmichael. He said he gets frequent questions about the complicated tax implications of short sales.
"I make it clear to my clients they should talk with a lawyer or a CPA," he said.
It's impossible to ease the fears or specifically answer many questions, these accountants say.
"We've had quite a few clients fall into that category," said Roman',Times,serif; FONT-SIZE: 15px; CURSOR: pointer; FONT-WEIGHT: 400" class=" lingo_link lingo_link_hidden" href="http://topics.sacbee.com/Jennifer+Neronde/" rel=nofollow>Jennifer Neronde, office manager at Rocklin-based Cramer and Associates CPA.
Uncertainty reigns with less than six weeks before the April 15 filing deadline because the forgiven debt question has gotten caught up in a larger tussle over business taxes between the Legislature and Gov. Arnold Schwarzenegger.
It's headed for a Capitol showdown next week.
Monday, the Assembly is scheduled to vote on SB32 X8, a bill by Sen. Lois Wolk, D-Davis, that would ban the state from taxing mortgage debt forgiven in 2009.
But Schwarzenegger is threatening to veto the bill over an obscure clause opposed by business groups. That clause establishes new tax penalties on firms that file unfounded claims for refunds. Business associations believe it will unfairly punish them for tax withholding decisions they claim are difficult to calculate. The clause, along with forgiven mortgage debt, is among dozens in the bill to align Roman',Times,serif; FONT-SIZE: 15px; CURSOR: pointer; FONT-WEIGHT: 400" class=" lingo_link lingo_link_hidden" href="http://topics.sacbee.com/California/" rel=nofollow>California's tax codes with federal codes.
The governor wants the business penalty provisions stripped from the bill, said his spokesman Mike Naple.
"The governor would prefer that the provision be taken out of the bill and addressed in separate legislation," Naple said.
The state gave homeowners who occupied their homes a pass on forgiven mortgage debt in 2007 and 2008. The federal government, meanwhile, has backed off on taxing forgiven mortgage debt through the end of 2012. In the past, both branches of government treated forgiven debt as taxable income.
In a short sale, for instance, a lender might accept a sales price of $200,000 on a home where it's owed $325,000. The $125,000 left unpaid is classified as forgiven debt, which used to qualify as new taxable income. The Bush administration, backed by the real estate industry, blocked the IRS from taxing forgiven debt in 2007. It's a temporary measure to encourage borrowers to call lenders and negotiate alternatives to foreclosure.
In many cases, borrowers try short sales after they fail to get loan modifications, say real estate agents like Larry Henderson, of Prudential Norcal Realty in Carmichael. He said he gets frequent questions about the complicated tax implications of short sales.
"I make it clear to my clients they should talk with a lawyer or a CPA," he said.
Monday, May 10, 2010
Most Homes to begin building Positive Equity by late 2015
The typical U.S. homeowner in a negative equity position will begin to build positive home equity by late 2015 or early 2016, according to a forecast by First American CoreLogic. In some depressed markets, typical borrowers with negative equity may not experience positive equity until 2020 or later, according to the report. Research conducted by First American CoreLogic indicates more than 11.3 million, or 24 percent, of all residential properties with mortgages, had negative equity at the end of the fourth quarter of 2009.
Although house price appreciation will, over time, offset negative equity, in most cases, amortization will be a more significant remedy to negative equity. According to the report, over the next 10 years, the average loan balance will decrease by an annual rate of 3.3 percent, while home price are expected to increase at a three-percent annual rate over the next decade.
More info.
Although house price appreciation will, over time, offset negative equity, in most cases, amortization will be a more significant remedy to negative equity. According to the report, over the next 10 years, the average loan balance will decrease by an annual rate of 3.3 percent, while home price are expected to increase at a three-percent annual rate over the next decade.
More info.
Thursday, May 6, 2010
California REALTOR Showcase
June 10, 2010, Thurs., 8:30 a.m. - 5 p.m.Sacramento Convention CenterC.A.R. will present the California REALTOR® Showcase during the June business meetings in Sacramento. Taking place at the Sacramento Convention Center, the Showcase will feature FREE seminars to help REALTORS® stay informed. The Showcase also features a 2010 Mid-year Update Luncheon featuring C.A.R. Executive Vice President Joel Singer. LEGISLATIVE DAYLegislative Day takes place one day before Showcase; be sure to maximize your trip to Sacramento and attend both events.For more information, please visit our Legislative Day page.
LUNCH TICKET SALES2010 Midyear Update Luncheon: Looking Back to Look ForwardPresented by C.A.R. Executive Vice President Joel Singer $55Thursday, June 10, 2010 ~ 11:30 a.m.-1 p.m.Click here to purchase luncheon tickets.
SEMINARSRegistration not required to attend the FREE seminars below. Limited seating on a first-come, first-served basis.
Your Guide to the New California Residential Purchase Agreement(Thursday, June 10, 2010 - 8:30 a.m. - 10 a.m.)Presented by Gov Hutchinson, assistant general counsel, C.A.R.This class will familiarize REALTORS® with the 2010 changes to the California Residential Purchase Agreement and Joint Escrow Instructions (Form RPA-CA). The RPA-CA form is the cornerstone of every successful real estate transaction in California, and there are several essential concepts, principles, and facts about this form that all REALTORS® should know. This 90-minute seminar will address the changes only and does not offer the 4-hour Continuing Education (CE) credit.Exploring Emerging Technologies and the Future of Consumer Engagement(Thursday, June 10, 2010 - 9:30 a.m. - 11:00 a.m.)Presented by Mark Flavin, director of information technology, Bay East Association of REALTORS®Location awareness technologies allow you to connect a physical location with a user's device and return information based on the user’s location. Learn how one association is integrating location awareness into its mobile open home search. Enjoy a glimpse of the technologies that are on the horizon and learn the strategies that brokers, business owners, agents, and association executives will need to effectively engage and capture consumer interest with these technologies.You will: • Learn how to identify several major technology trends already beginning to enter the real estate market. • Understand how to effectively leverage emerging media channels to communicate with consumers. • Walk away with examples and suggestions on how to engage with consumers in the areas discussed.Tools to Mitigate Your Risk in Today's Market(Thursday, June 10, 2010 - 1:30 p.m. - 3 p.m.)Presented by Jo Gaerlan, field sales development manager, American Home ShieldGiven today’s “clean offers” and the number of short sales, are brokers 100 percent confident that buyers, investors, and others are receiving the standard of care to which they’re entitled? Are brokers risking liability by not fully educating their agents about important transaction post-sale services? Are their agents’ actions well documented? This fast-paced, engaging discussion with attorneys and other experts will uncover the answer to these questions and more by providing current examples of real-life lessons.
You will learn: • To define who the new sellers and buyers are in today’s market environment • How the needs of the new sellers and buyers affect your real estate transactions • The risk they pose to your brokerageNavigating Through the Mortgage Process in a Changing Environment(Thursday, June 10, 2010 - 2 p.m. - 5 p.m.)Presented by George Lawrence, Commercial Real Estate Lending and ConsultingThis initiative is a collaborative effort sponsored by C.A.R., CitiMortgage and Freddie Mac designed to instruct C.A.R. members and real estate professionals throughout California on how to assist the homeowner under HAFA and effectively work with lenders and their potential home buyers.
HOUSINGFor information on housing, please visit Sacramento-area hotels.AIR TRANSPORTATIONFor airport and airline information, please click here.CONTACT USPlease call Betty Thomas at (213)-739-8236 or email bettyt@car.org
LUNCH TICKET SALES2010 Midyear Update Luncheon: Looking Back to Look ForwardPresented by C.A.R. Executive Vice President Joel Singer $55Thursday, June 10, 2010 ~ 11:30 a.m.-1 p.m.Click here to purchase luncheon tickets.
SEMINARSRegistration not required to attend the FREE seminars below. Limited seating on a first-come, first-served basis.
Your Guide to the New California Residential Purchase Agreement(Thursday, June 10, 2010 - 8:30 a.m. - 10 a.m.)Presented by Gov Hutchinson, assistant general counsel, C.A.R.This class will familiarize REALTORS® with the 2010 changes to the California Residential Purchase Agreement and Joint Escrow Instructions (Form RPA-CA). The RPA-CA form is the cornerstone of every successful real estate transaction in California, and there are several essential concepts, principles, and facts about this form that all REALTORS® should know. This 90-minute seminar will address the changes only and does not offer the 4-hour Continuing Education (CE) credit.Exploring Emerging Technologies and the Future of Consumer Engagement(Thursday, June 10, 2010 - 9:30 a.m. - 11:00 a.m.)Presented by Mark Flavin, director of information technology, Bay East Association of REALTORS®Location awareness technologies allow you to connect a physical location with a user's device and return information based on the user’s location. Learn how one association is integrating location awareness into its mobile open home search. Enjoy a glimpse of the technologies that are on the horizon and learn the strategies that brokers, business owners, agents, and association executives will need to effectively engage and capture consumer interest with these technologies.You will: • Learn how to identify several major technology trends already beginning to enter the real estate market. • Understand how to effectively leverage emerging media channels to communicate with consumers. • Walk away with examples and suggestions on how to engage with consumers in the areas discussed.Tools to Mitigate Your Risk in Today's Market(Thursday, June 10, 2010 - 1:30 p.m. - 3 p.m.)Presented by Jo Gaerlan, field sales development manager, American Home ShieldGiven today’s “clean offers” and the number of short sales, are brokers 100 percent confident that buyers, investors, and others are receiving the standard of care to which they’re entitled? Are brokers risking liability by not fully educating their agents about important transaction post-sale services? Are their agents’ actions well documented? This fast-paced, engaging discussion with attorneys and other experts will uncover the answer to these questions and more by providing current examples of real-life lessons.
You will learn: • To define who the new sellers and buyers are in today’s market environment • How the needs of the new sellers and buyers affect your real estate transactions • The risk they pose to your brokerageNavigating Through the Mortgage Process in a Changing Environment(Thursday, June 10, 2010 - 2 p.m. - 5 p.m.)Presented by George Lawrence, Commercial Real Estate Lending and ConsultingThis initiative is a collaborative effort sponsored by C.A.R., CitiMortgage and Freddie Mac designed to instruct C.A.R. members and real estate professionals throughout California on how to assist the homeowner under HAFA and effectively work with lenders and their potential home buyers.
HOUSINGFor information on housing, please visit Sacramento-area hotels.AIR TRANSPORTATIONFor airport and airline information, please click here.CONTACT USPlease call Betty Thomas at (213)-739-8236 or email bettyt@car.org
Subscribe to:
Posts (Atom)