All posts by jd

Real estate broker, civil engineer and general contractor.
Hiking

South Yuba River Independence Trail in Nevada County

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independence-trail-bench-tr

One of the many nice trails located in Nevada County is the South Yuba River Independence Trail. I have walked this trail many times and it is truly a unique natural and historic jewel. The trail is fairly level, with wheelchair accessibility on both on the west and the east trail.

The main entrance to the Trail is on Highway 49, 5.5 miles from Nevada City, heading towards Downieville, near the South Yuba River bridge. Parking is available beside the road, with several marked disabled spaces. Highlighting the West Trail is a waterfall one mile from the entrance. People and wheelchairs travel a switchback ramp from Flume 28 (520 feet long) to the swirling waters of Rush Creek. Also featured on the west side is an overlook of the Yuba River, surrounded by canyon flora. The East Trail features cliff-hanging flumes, more views of the river and foothill landscapes, with a total of two and a half miles of maintained trail. There are picnic areas, outhouses, and scenic vistas all around. The Independence Trail is for all people, with its gradual, level walkway – from young mothers with stroller kids, to serious hikers and joggers, to seniors with limited mobility, to those in wheelchairs. Bathrooms are available along the way.

The origin of the Independence Trail was an old, abandoned miner’s ditch, previously known as the Excelsior Canal. It was built to carry water from the South Yuba river to hydraulic mining sites in Smartsville, 25 miles downstream. When California outlawed hydraulic mining in 1884, the ditch was used for irrigation until 1967, when it was abandoned. In 1975, a docent of the Oakland Museum, John Olmsted, re-discovered the whole water system consisting of the ditch, the berm, where the ditch-tender walked, and the wooden flumes which bridged the ravines. He had the vision to recognize that this could be the answer to a friend’s lifelong dream: “Please find me a level wilderness trail where I can reach out and touch the wildflowers from my wheel chair.”

Hiking distance: 2.5 miles downstream (west) or upstream (east) The west trail offers a 4.3 mile loop along a swimming trail to Jones Bar Road and then goes back to Excelsior Canal and back to the start.
To start Go 5.5 miles from Nevada City towards Downieville just short of the South Yuba River. There is parking along Hwy 49 including handicapped spaces.

Caution:
Winter and Spring weather conditions can cause the trail to become muddy and impassable for wheelchairs.

Call the South Yuba River State Park for trail condition information before you go.

More Information South Yuba Indendence Trail


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Hiking

Nevada County Community Celebration of Trails to be Held June 6, 2009

Independence Trail off Hwy 49, Outside Nevada City, Towards Downieville
Independence Trail off Hwy 49, Outside Nevada City, Towards Downieville

By: YubaNet.com
And Nevada County Land Trust

Grass Valley, CA May 15, 2009 – On Saturday, June 6 community members will enjoy the second annual Nevada County Celebration of Trails. Events will include a series of hosted trail rides, walks, and other activities throughout the day, between 10:00 am and noon. At 12:30 pm, everyone is invited to a community event held in the parking area of Twin Cities Church in Grass Valley to share trails information and hear exciting announcements of new trails to be dedicated.

Nevada County Land Trust, along with our western Nevada County community partners will sponsor this event to observe National Trails Day. Partners include a number of organizations interested in building, promoting, and maintaining local trail systems including: the City of Nevada City, Gold Country Trails Council, Bicyclists of Nevada County, Friends of Deer Creek, County of Nevada Planning Department, Rattlesnake Neighborhood Association and Sierra Outdoors with John Skinner and Greg Archbald.

National Trails Day is a celebration of trails that evolved from the report of President Ronald Reagan’s President’s Commission on Americans Outdoors. In 1987, the report recommended that all Americans be able to go out their front doors and within fifteen minutes, be on trails that wind through their cities or towns and bring them back without retracing steps. The recommendation, dubbed Trails for All Americans, became the impetus behind several public and private parties joining American Hiking Society in launching National Trails Day in 1993.

Trails activities: 10 am to noon

The public can choose events that suit their interests. Most events are free of charge.

– City of Nevada City and Sierra Club
What: A family friendly hike that will include natural, Maidu, mining, logging and modern history
Where: Hirschman’s Pond Trail – Trailhead located at 115 Cement Hill Rd.
When: 11:00am to 11:30am
Bring: Bug repellent and water. Sorry no strollers

– Nevada County Land Trust and Bicyclists of Nevada County
What: Kenny Ranch Trails, walk, run, mountain bike ride.
Where: Twin Cities Church parking area
When: 10 a.m. to Noon
Bring: Good walking shoes, water and/or your bike

– Friends of Deer Creek and American Rivers
What: National Trails Day Work Day. Volunteer to help work on a local trail.
Where: Champion Mine Rd at Old Downieville Hwy split – take Champion Mine Rd for a couple hundred yards and park in the pull-outs on the right – Trailhead is on the left.
When: 10 a.m. to 11:30 a.m.
Bring: Work clothes and water

– Gold Country Trails Council
What: Poker Ride at Skillman Horse Camp
Where: Tahoe National Forest
When: Sign up begins at 8:30 a.m. Ride out at 10 a.m.
For entry forms visit GCTC online at www.goldcountrytrailscouncil.org or contact Mary Johnson at 530.477.8501.

Celebration of Trails Event: 12:30 pm to 1:30 pm
Join us to celebrate and learn more about trails, hiking activities and outdoor recreation in our community.

– Trails Celebration hosted by Nevada County Land Trust
What: Trails celebration, award ceremony and gathering of outdoor organizations and enthusiasts.
Where: Twin Cities Church parking area, 11726 Rough and Ready Highway, Grass Valley
When: 12:30 to 1:30 p.m.

A full detail of events and activities can be found at Nevada County Land Trust-Trails Event

Real Estate

We’re Getting Back to a “Real” Home Market at Last

house-in-shopping-cart

Housing affordability among first-time Californian home buyers in Q109 improved more than 20 percentage points from the year-ago period, according to survey results released Thursday by the California Association of Realtors (CAR).  This is good news for us here in Nevada County. The more people who can afford to buy a home, the sooner home prices will stabilize.

Home prices became out of reach for over 86 percent of the people in California, when real estate was selling so fast and furious.  The only reason home sales kept going was the easy lending practices. Buyers who really couldn’t afford a home were able to get home loans, resulting in the large number of foreclosures that we have at the present time.   Now we are getting back to a “real” home market.

The data suggest the potential for a significant increase in first-time buyer presence on the market, although it’s unclear how many of these households will actually participate. The increased housing affordability indicates substantially lower home prices, likely affected by foreclosure sales in the state.

CAR found 69% of California households could afford to purchase an entry-level home in Q109, compared with only 46% in the same quarter last year.

The median entry-level price for a home in California was $213,040 in the first quarter, making the estimated monthly payment $1,270. A California household needs a minimum $38,090 yearly income to purchase under these circumstances, CAR said. These households typically purchase a home equal to 85% of the prevailing median price.

Californian households might enjoy some new affordability due to the state’s high foreclosure sales volumes. A monthly report released this week by ForeclosureRadar saw foreclosure notices ease by 18% in the state during April, while sales at auction rose 35% overall and a record number of properties sold at an average 28% below the estimated market value.

Areas like California with high volumes of so-called “distressed” sales — which traditionally fetch 20% less than non-foreclosures — also tend to show the first signs of recovery, National Association of Realtors economist Jed Smith tells HousingWire for the upcoming June magazine issue.

“We’ve seen some phenomenal strength in California, Arizona, Nevada and Florida recently, largely because prices in those markets got bid down to such a point that the first-time home buyer and probably many others have seen a real opportunity there…to come back into the market,” he says

 

Real Estate

New Financial Incentives and Uniform Process for Short Sales

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short-sale-house

The following is a press release which announces that the Obama Adminstration has setforth guidelines to make short sales a little easier and should help us in Nevada County in speeding up short sales.  For anyone with economic problems regarding their home, this is welcome news. Banks tend to prolong a short sale because of their bureaucracy . This proposal will give banks financial incentives to speed up the process. 

A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.

The NATIONAL ASSOCIATION OF REALTORS® (NAR) today announced that the Obama Administration has added new incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP), part of the administration’s Making Home Affordable plan.

Loan servicers may consider short sales or deeds-in-lieu of foreclosure for borrowers who do not qualify to have their loans modified on a permanent basis under the Making Home Affordable Loan Modification Program.

• Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program, but don’t qualify for a modification or do not successfully complete the three-month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.

• Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).

• The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.

• Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.

• In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.

• The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.

• Servicers may not charge fees to borrowers/homeowners for participating in the FAP.

• The program is in effect through 2012.

• Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).

Printed by Permisson of:
Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Business

Chrysler May Terminate Liberty Motors Chrysler-Dodge Dealership

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Liberty Motors
Liberty Motors

Wow, in continuing bad news for Grass Valley’s tax revenues and our local shopping, Chrysler has announced that they are trying to close 789 dealerships according to CNN today. One of the chosen one’s is our local Chrysler dealer, G.K. Alcombrack, Inc. known as Liberty Motors Dodge Chrysler off of Freeman Lane.

Since Chrysler is in bankruptcy court, they are asking that the sales and service agreements between Chrysler Motors LLC and the 789 dealerships be terminated.

Chrysler has already sent letters to the dealerships and “Upon approval from the court, your agreement will be rejected on or about June 9, 2009”. This represents about 25% of their dealerships and represents about 14% of their sales.

So now we have lost Weaver GMAC, Ford has moved to Auburn and we may lose Chrysler. The only car sales remaining in Western Nevada County will be used car dealers. If we want to buy a new car, we’ll have to go out of town. Not a good thing, sorry to say. That means we have not only lost our dealerships, but when we want warranty work, that’s another trip out of town and more lost revenue.

I talked to Ernie Shewmaker today, salesman for Liberty Motors and he stated that they will continue to sell used cars at their present site. He claims they have not ordered any vehicles from Chrysler in months. However, their website still reflects that they are a Chrysler dealer.

To read the full story got to CNN Chrysler Closing 789 Dealerships

For a map of the 789 Dealerships to be closed go to New York Times Maps of Closings

Real Estate

Real Estate Listing Prices Increasing in California

sold-signs

There are further indications that we may have hit the bottom of the housing markets. Real estate sales continue to go up in Nevada County with pending sales in the 200’s range. At the beginning of the year, the pending sales were below the 150’s. Sacramento saw a decline in inventory for April which is unusual. According the Sacramento Bee, sine 1994, only four years, 1995, 2003, 2008 and 2009 have seen for sale inventory fall from March to April. It also appears to have happened nationally this year.

According to PR Web, listing prices are increasing in California:

“Listing prices rose at the fastest rate in the California markets with San Jose up 3.7%, Los Angeles up 3.2% and San Diego up 2.8% in April. Prices in 18 markets are now showing three months of sequential listing price increases. Asking prices fell at the fastest rate during April in Las Vegas followed by Salt Lake City – down 3.8% and 2.6% respectively.

“Broadly rising asking prices in this difficult economic environment demonstrate the powerful effect of seasonality in the housing industry,” said Stephen Bedikian, partner and research director for Real IQ. “We expect to see continued strength during the next few months of the spring selling season fueled by historically low mortgage rates. We won’t be able to call a bottoming of the market until we see stability continue into the seasonally weak fall and winter months.”

Inventory levels decreased in a majority of major markets with inventory falling in 15 of 26 markets. Across the 10-City Composite Index markets, inventory fell by 1.5% in April and was effectively unchanged during the most recent three-month period. Inventory grew by the largest amount in Boston up 6.3% followed by Austin up 4.9%. Inventory fell by the largest amount in Phoenix and San Francisco where it contracted by 11.0% and 7.1% respectively.”

So no one is predicting that we are at the bottom of the market.  All I know is that sales in Nevada County are going up, and prices are starting to rise.

Real Estate

Putting Mortgages into ‘Plain Language’

house-on-hands

Bank of America has created a new website called Bank of America Home Loans for borrowers that includes a calculator that determines not just what size loan people can qualify for, but how much they can spend without being stretched too thin. “We wanted to change the conversation to ‘How much house can I comfortably afford?’ rather than ‘What’s the maximum I can buy?’ ” said Aditya Bhasin, the product, pricing and strategy executive for Bank of America Home Loans.

The site is designed to be easy to read, spelling out a variety of contingencies, including the maximum payment that an adjustable rate mortgage could potentially cost.

The new site also offers what BofA calls Flat Fee Mortgage Plus, which has no application fee and a single closing fee that includes processing costs and fees for third-party services like appraisals.

Not included are other standard costs like property taxes, homeowners’ insurance and prepaid interest.

Craig Focardi, a senior research director at the Tower Group, a financial consulting firm, said the idea for the plan is nothing new – it’s been tried by others. But the prominence of the programs could persuade competitors to adopt the features.”

If you recall, Bank of America took over Countrywide Lending and renamed it Bank of America Home Loans. I’m not sure that their new website is not a rehash of Countrywide’s old website. But with B of A’s great customer service (tongue in cheek) they need some kind of P.R. to make them look helpful. Some related information on Countrywide Financial Corporation:

According to the LA Times 04/27/2009

“Linked more recently with high-risk loans, co-founder Angelo R. Mozilo’s huge paydays and FBI investigations, the Countrywide name became “too toxic to resuscitate,” as another expert puts it — and a liability for Bank of America Corp., which snatched it up last year as it neared collapse.

And so over the weekend, nearly 10 months after the Bank of America deal closed, Countrywide Home Loans signs came down and Bank of America Home Loans signs appeared at the lender’s 215 storefront offices in California. It was the start of a rebranding of nearly 1,300 Countrywide mortgage offices nationwide.”

Yep, Countrywide and Bank of America, great combination.

Environment

Fun Tuesday-Slow Loris

Slow Loris are  primates 10 to 15 long and weigh about 610 to 1000 grams. Although very cute with their large eyes, they can give you a very painful bite, since their teeth are full of toxins. Because of their cuteness they are sold on the open markets as pets in Asia and with destruction of the rain forest, they may become an endangered species. They are really cute and maybe we can bring awareness to help save these beautiful animals.

After watching these videos, for more information go to Slow Loris Research 

httpv://www.youtube.com/watch?v=rLdQ3UhLoD4
Tickle me some more!

httpv://www.youtube.com/watch?v=nb12bAaKzvA
Time for lunch.

Real Estate

Lenny Dykstra’s $25 Million Home Faces Foreclosure

lenny-dykstra

It seems that Lenny Dykstra, former major baseball player for the New York Mets and Philadelphia Phillies, may be facing foreclosure on his 12,723 square foot Georgian estate, originally built for hockey legend Wayne Gretzky. Dykstra’s lender, Index Investors LLC, filed a default notice on March 11 at which time he was behind in his payments in the amount of $422,436. The private investment group gave Dykstra an $850,000 bridge loan in November of last year which was secured by the home.

Dykstra bought the home from hockey Wayne Gretzky for $18.5 million in 2007 and put it on the market last year for $24.95 million. The six-bedroom home didn’t sell and in February it showed a price reduction down to $16.5 million. All of a sudden, the list price has been pushed back up to $25 million. It is still however listed at the same rental price it was in February, $55,000 a month.
lenny-dykstra-fireplace2

Now, the NY Post is reporting that “Lenny Dykstra” is flat-out broke and facing foreclosure. According to the article, “The private-equity firm Index Investors filed foreclosure papers March 11 on Dykstra’s sprawling Thousand Oaks estate…” Also, Washington Mutual filed its own notice of default on his $12 million mortgage on March 18. To top it off, his jet has been impounded.

If that isn’t bad enough, his wife, Terrie Dykstra of Thousand Oaks filed for divorce in Ventura County Court on April 16, listing irreconcilable differences. Terri is requesting joint custody of the couple’s 13-year-old son, according to court documents. Two houses in Thousand Oaks owned by the couple are listed as community property.

The couple were married more than 23 years and were separated on April 3, court documents show.

Stories about Dykstra’s personal acquisitions after baseball, his financial woes and legal battles have aired on HBO, ESPN and been published in sports magazines.

In addition, lawsuits filed in Ventura County Superior Court claim he owes: $4,850 for pilots and maintenance fees for a two-day trip he took over Christmas; $12,000 for chartered aviation services in connection with his magazine, The Players Club (the complaint states Dykstra’s Visa card was declined); and more than $290,000 to Las Vegas printing company Creel Printing and Publishing Co. for printing services for The Players Club. The magazine folded in April 2008, shortly after it was launched.

Dealbreaker also says that Dykstra’s Gulfstream II was impounded on February 12. It’s a dramatic turn from a year ago when the New Yorker did a profile of Dykstra and his magazine, The Players Club which was going to show professional athletes how to keep their wealth and not join the ranks of players who earn millions and wind up in financial trouble just a few years later. Since then, Dykstra has been the subject of multiple lawsuits and creditors in relation to the magazine. As investments, magazines are like restaurants, glamorous, but highly profitable only for the lucky few.

Dykstra’s major league career spanned from 1985 to 1996 with the New York Mets and Philadelphia Phillies.

Real Estate

Lenders Chase Short Sale Sellers

This is a reverse view, your neighbors are there to watch out for you.
This is a reverse view, your neighbors are there to watch out for you.

This is Listing… with panoramic views in Seattle, Washington. But, on with the story.

An increasing number of lenders are going after borrowers who sell their homes for less than they owe – known as a short sale – in order to recover more of the difference between the amount owed and the sale price.Lenders say the factors that they consider when they decide to seek more money are: 

  • How large was the unpaid debt?
  • Was the property an investment or a personal residence?
  • How much money does the borrower make and what other assets does he have?
  • What is the policy of the mortgage insurer or the holder of the second lien? 

A PMI Group Inc. spokesman says the mortgage insurer “primarily target[s] borrowers who are not experiencing hardship – but those who simply elected to walk away from the property due to its decline in value

Source: The Wall Street Journal, Ruth Simon (04/30/2009)

In real estate, a short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, usually in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. 

In some cases as mentioned above, the banks are not willing to just let go of the mortgage without further compensation.  In many cases, this has led to foreclosure in lieu of a short sale.