San Diego & Riverside Counties| Real Estate Blog

List my home Short Sale and Buy Home Program

Short Sell your existing home,
and then Buy your next home concurrently!

Get a nicer House, for Less Money, and not have to move into a Rental or Apartment !

Get a FREE No Obligation Short Sale Pre-Qualification Your Information will be held in our strictest confidence. See our PRIVACY POLICY for details

Click here for Short Sale and Buy Program

YES WE CAN offer you the ability to Short Sale your existing upside down home, and then simultaneously buy a similar home at today's super low values.  The Short Sales ASAP group has teamed up with one of San Diego's leading mortgage lenders to offer southern California homeowners this exciting Short Sale and Buy program, utilizing the Federal Housing Authority (FHA) 4155 loan program.

According to 1st American Core Logic, in Los Angeles County there are over 650,000 homeowners who have negative equity (upside down) in their home, and in San Diego & Riverside Counties, the estimates are over 300,000 property owners have no equity. For homeowners who are upside down, the are several options to choose from as follows:

1. Do Nothing: Keep Paying current mortgage for the next 8 to 12 years until break even.
2. Loan Modification: Maybe lower payments, but with the same high mortgage loan balance.  reposts show that only 25% of Loan Mod applications are granted.
3. Foreclosure: Stop making payments, eviction from home, ruined credit and loan worthiness, and become a renter for the next 5 to 7 years.
4. Short Sale and Buy Plan:  Short Sale existing home and thus eliminate all negative debt, and then simultaneously buy a similar replacement home at today's low property values. 

Short Sale	and	Buy.
$650,000 Purchase in 2005'. Valued at $350,000 Today.		$375,000 Purchase in 2009' with 3.5% Down Payment.

Click here for Short Sale and Buy Program

Below is a list of some of the more common qualifying Guidelines for the Short Sale and Buy plan utilizing the FHA 4155 loan program (terms and conditions are subject to change):

• Purchase Loan Limits are $729,750 for San Diego & Riverside Counties.
• Down Payment as low as 3.5% of the new Purchase Price, and Gifts are OK.
• No Income Limits.
• Competitive FHA lending interest rates.
• Purchase price of replacement home must be less then original Loan Balance's of house being Short Sold.

Short Sale and Buy Questions and Answers. 

What is a Short Sale ? Simply put, a Short Sale occurs when a homes market value is less then the outstanding mortgage debt plus sales costs (sometimes called an upside down Mortgage. In order for a Short Sale to actually close, the mortgage bank's must agree to write-off a portion of the outstanding loan debt.

How does a Typical Short Sale and Buy transaction Work? For example, let's look at a typical home that has $500,000 in mortgage debt, but is now worth only $375,000 in today's market.  We market and sell this home for $365,000, and we also negotiate with the Bank's to reduce their loan balances to a value a little less than that, in order to pay closing costs, back taxes and other costs.  This is called a Short Sale.  Simultaneously, the property Seller works with the Mortgage Lender to qualify for the Short Sale and Buy Program.  Once approved, we help the property owner find and purchase a similar replacement home at today's bargain values.  The replacement property must be priced less then the $500,000 that is currently owned on this example short sale property. Once everything is approved and processed, we close escrow on the short sale home, and simultaneously close on the replacement home the very next day.  The past mortgage debts are eliminated and now your are living in a home that you own with positive equity. 

Click here for Short Sale and Buy Program

Why Would a Mortgage Bank Consider a Short Sale ? Lenders often entertain such an option for in the long run, they will usually receive a higher percentage of their principal back as compared to forcing the property into Foreclosure. In a Foreclosure, the Mortgage Bank runs the risk of property neglect or damage, and additional delays and costs, and other market losses.

Today, most California lenders won't commit to a Short Sale until their is a valid and firm purchase offer in hand from a qualified new buyer, and a knowledgeable broker/agent who can negotiate the deal. It's imperative to work with an experienced real estate broker for they will need to prepare a professional and complete Short Sale package.

Why Do Mortgage Banks allow a Short Seller to Buy a Replacement Home ?  The Federal Government has injected Billions of dollars of capital in the financial markets via TARP and other programs.  A larger portion of these funds are earmarked for mortgage banking and real estate.  A significant portion of these funds are being supplied to FHA programs such as the FHA 4155.  Recent studies have shown that many Loan Modification programs are not working for many homeowners, and Banks and the Feds are pulling out the stops to curb the level of Foreclosures.  Hence, the reason and motivation for the new Short Sell and Buy Program.

How is a Short Sale Negotiated with a Mortgage Bank? Short Sales are one of the most difficult and complicated residential transactions. Compared to a normal sale, these transactions require additional paperwork, intricate negotiations with the mortgage banker's, and careful preparation of the process and purchase offer. A Short Sale package typically includes: a purchase offer contract, buyers loan qualifications, a realistic and detailed analysis of the fair market value of the home, current local real estate market conditions, seller financial information, seller hardship letter and more.

Basically, the Short Sale real estate professional must demonstrate to the mortgage bank's that the home is upside down, the purchase offer is fair and just, and the homeowner has a financial hardship worthy of a short sale. This financial hardship can be due to job layoffs, illnesses, divorce, or even the unexpected large increase in mortgage payments due to interest rate resets.

What is the Reason for the large number Short Sales in the SoCal Real Estate Market ? Today, the upside down Mortgages in California are due mostly to the risky, highly leveraged loans that were extensively used over the past 7 years to purchase homes with little or nothing down. Worse yet, many of these loans were adjustable rate loans, or negative amortization loans in which the loan balance gets higher every month.

In addition, southern California home prices have decreased by as much as 35% to 45% in some areas. These factors are causing many home owners to consider a Short Sale to solve their financial crisis. The result is, there are 1,000's upon 1,000's of southern California homeowners who are upside down on their mortgage loan by then of thousands of dollars, and can no longer afford their mortgage payment.

Do I need a Real Estate Professional to Conduct my Short Sale ? Although, it is theoretically possible to conduct your own Short Sale (ie: Do-It-Yourself), we strongly recommend that you do not. Here is why: 1.) Our Services effectively cost you nothing... Need I say more ?... but I will. We Negotiate our fee's with the Mortgage Banks, and we do not charge any type of up front fee's (be very wary of anyone who wants to charge an upfront fee by the way).

Why should I work with County Properties? We are glad you are thinking about this question... The Association of Realtors recently conducted a statewide survey which reported that only 10% of all Short Sales actually closed escrow !!! That's terrible.. the Great News is our Short Sale closing Rate is better then 90%. How you may ask ?... Experience - Education - Tough Bank Negotiations - Dogged Persistence. Our team consists of Bank Negotiators, a Real Estate & Internet Marketing expert, Listing and Sales experts, and Transaction Coordinators. Our team experience goes back to the mid 1990's when southern California experienced it's last major real estate down turn.

Please give is a call TODAY, so we can begin to help you TOMORROW. Call us at: (619) 301-0200 or Toll free (866) 825-8124 we are easy to talk too.

We'll keep the conversation and your situation in our strict confidence. If you prefer, please feel free to contact me by clicking here Short Sale and Buy Program

We'll keep the conversation and you’re pending Foreclosure in strict confidence.

Renting Versus Buying a home in southern CA

Yes, buying real estate is a big commitment but many times not buying real estate is a bigger mistake. Let’s compare the costs of renting a property in today’s market versus buying the same property today.

First to establish an example. My figures will work with any example, but let’s use a home that would rent for $2,000 a month or would sell for $400,000 at 3% down.

What would your cost per year be to buy when compared to the $24,000 you would pay in rent?

Let’s use very oversimplified figures:

    Interest: 5% on $388,000 =     $19,400

    Property Taxes = $  4,000

    Insurance =   $  1,000

    $24,400

There are other factors to consider. For example, IRS tax relief for the deductible items above. Let’s use a 25% IRS tax rate and an 8% California tax rate. Interest and property tax payments are deductible so 33% of the $23,400 would result in a tax savings of $7,722. That brings the outlay each year to $16,678. That is less than renting. 

Yes, there are other variables such as the interest deduction in later years will drop plus property taxes and insurance will increase, but rents will also rise. There will be expenses such as repairs to be paid by the owner but this could be offset by appreciation as real estate markets return to normal.

The major point of this posting is that the tax benefits of ownership are important when budgeting for yearly housing costs, as are future appreciation plus your pride of ownership so consider buying now not later. Any questions? Call your friendly and capable real estate agent at County Properties. 

 

If you would like to get loan information from recommended banks, or get started and view all homes, condos, investment properties, pre-foreclosures, bank owned foreclosures (REO's) or thinking of selling your property, please visit our website at: County Properties San Diego or County Properties Riverside

By the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I’ll be happy to follow up and take great care of them.

 

New Fed rules beginning Oct. 1, 2009

New Fed rules. Beginning Oct. 1, 2009 new rules adopted by the Federal Reserve will go into effect, requiring greater diligence on the part of mortgage lenders and brokers who issue high-cost loans for borrowers with less than favorable credit.  The interest rates on these loans are at least 1.5 percentage points greater than the average prime mortgage rate. The regulations, which were finalized in July 2008, prohibit lenders from making a high-cost mortgage without verifying that a borrower could repay the loan in the conventional way, and not through a foreclosure sale.

During the height of the market, subprime lenders often would offer loans without requiring borrowers to provide proof that they could make the monthly payments.  In some cases, borrowers used stated income loans, which allowed some borrowers to fabricate annual income figures and buy homes without down payments.

 

Although many believe the Federal Reserve’s new rules represent one of the more substantial efforts on the part of the federal government to combat such lending practices, some consumer advocates are concerned.  According to a policy associate at the Center for Responsible Lending, the new regulations do not cover option ARMs, which enable borrowers to choose from several monthly payment options during the loan’s early years.

 

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County Properties 23 years of brokerage experience and trust! We offer free counseling in real estate re; home values and information on options of selling vs Foreclosure.  If you have equity in your home, we will sell your home and get top dollar in this challenging market. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also. Please feel free to contact me today for free counseling at our website, click. County Properties San Diego or County Properties Riverside

San Diego-Riverside real estate market flipped from buyer's market to seller's

San Diego-Riverside real estate market flipped from buyer's market to a sellers market.  A buyers market is when the inventory is high and demand from buyer's is low. A sellers market is the opposite, inventory is low and buyer demand is high. This is an unusual event in the middle of a national foreclosure market. Both San Diego, CA and Riverside, CA counties have had a high inventory of homes on the market for both counties, until now. 

For the past 3 years the high inventory of real estate sat in a buyers market, while prices has consistently been dropping until now. Just this past week our office at County Properties servicing  County Properties San Diego & County Properties Riverside, has been receiving an average of 10-20 offers on bank owned REO properties as they hit the market. Our agents have been experiencing the increase in demand throughout both CA counties.

To give an example the last few years the average amount of active listings for sale in San Diego MLS was 20,000 attached and detached homes on the market and average 65 days on the market. Now the San Diego county has 9200 attached and detached homes on the market and average 43 days on the market. The exception is bank owned properties (REO'S) they range 2 days to 31 days on the market.

The Riverside county market is similar to the San Diego county market that inventory also dropped 50% and are is now a buyers market. The properties that still taking longer to close escrow are short sales, where the home is worth less than the loan's on the property and the seller with cooperation from the bank agree to short the loan and the property can sell at market value.

This is a good time if you are thinking of selling while we are in this temporary flipped market, the shortage of inventory is due to the temporary moratorium on foreclosure sales that the banks are following. When the moratorium trigger wave hits in 3-4 months the market may go to a balanced market. Now it  takes 6 months from the notice of default date. It usually is 3 months plus 3 weeks before it goes to trust deed sale and if it does not sell at the court house steps for a cashier check (CASH) at what is owed to the bank then it goes to the bank and is called "bank owned" or "Real Estate Owned" (REO). It takes a good a realtor (R) to work through these challenging times make sure you pick one that can get the job done.

County Properties 23 years of brokerage experience and trust! We offer free counseling in real estate re; home values and information on options of selling vs Foreclosure.  If you have equity in your home, we will sell your home and get top dollar in this challenging market. Click Seller: Free Home Evaluation. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also. Click Seller: Stop Foreclosure Now  Please feel free to contact me today for free counseling at our website,   County Properties San Diegoor County Properties Riverside.

San Diego County multifamily stats show market change

Real-estate analysts, economists and housing industry leaders agree the market is down, as evidenced by slowing transaction volume and declining average sales prices in all segments of the housing market: single-family homes, apartment properties and condo conversions. The softening trends in San Diego County have been brought about by buyer hesitation and sellers reflecting general concern in the marketplace about future interest rates, job and wage growth, population migration and widely projected downturn in the national housing market.

 

In 2006, sales of apartment properties, including those intended for condo conversion as well as for production of rental income, reflected the general softening in the real-estate market, in terms of the number of transactions and prices paid. Based on sales reported in CoStar Comps in 2006, there were 139 sales of apartments with 10 or more units intended for rental income production, a 28 percent drop from the 194 such sales in 2005. In 2006, the average price per unit was $132,000, a 7 percent decrease from the 2005 average of $142,000. During the year, the average price fell 25 percent from a high of $158,000 in the first quarter to a low of $119,000 in the fourth quarter 2006. This was the lowest quarterly average price per unit on properties intended for rental income production since the first quarter of 2004, when the average was $110,000.

 

The decline in sales of 10 or more units intended for condo conversion was even more precipitous: 26 sales in 2006, a 75 percent decrease from the 102 sales in 2005 intended for condo conversion. In the second half of 2006, there were only four reported sales of apartment properties (10 or more units) intended for condo conversion, compared with 47 sales in the second half of 2005. The average price paid per condo-conversion unit peaked in the first quarter 2006 at $210,000, and plummeted 37 percent during the rest of the year down to $133,000 in the fourth quarter.

 

The fall in the volume and prices for condo-conversion properties reflects the slow sales absorption that all conversion projects have been experiencing in the past year. There is so much stagnant converted inventory already that the premium for condo-mapped apartments is gone unless they are exceptionally desirable from a retail-marketing standpoint. Condo converters are now seeking help to work out financing issues on their nonperforming properties. The combination of a market flooded with converted units, slightly elevated interest rates and sluggish consumer confidence has stalled the conversion market; developers who entered the fray late in the season prepared to reap their share of profits are now scrambling to stay afloat.

 

However, there is a silver lining for savvy investors now that prices are becoming more realistic. Cap rates (the property's net operating income divided by the purchase price) on conventional multifamily product are returning to levels supported by old-fashioned real-estate fundamentals.

For properties without a condo map, the average cap rate on 2006 fourth-quarter sales was 5.67 percent, up from a low of 5.17 percent in the fourth quarter 2004. Investors are likely to require cap rates in the 5.5 percent to 6.5 percent range, depending on location, so that a target return can be generated from rising rents without fuel from condo-conversion mania. The desirability of Southern California is always going to be reflected in lower cap rates compared with other regions. The most recent rental survey published by MarketPointe shows strong rental rates and historically low vacancy of under 2 percent. More realistic cap rate expectations, on the part of both buyers and sellers, should result in a more active and sustainable market.

 

If buyers trade in real estate for the short-term, they will probably want to play in a different market for a couple of years. But if buyers invest with a longer view, they can't own a more desirable asset than San Diego real estate, especially with a housing shortage that's not going away.

 

If you would like to get loan information from recommended bank's, or get started and view all homes, condos, investment properties, pre-foreclosures or bank owned foreclosures (REO's), please visit our website at: County Properties San Diego or County Properties Riverside