San Diego & Riverside Counties| Real Estate Blog

How to buy a foreclosure

Many buyers, especially first-timers, hope to purchase a foreclosed property at a bargain price.  While purchasing a foreclosed home can be a wise choice for some buyers, it is important that buyers understand the differences in buying at different stages of foreclosure and be prepared to take on the challenges typically associated with each.

 

MAKING SENSE OF THE STORY FOR CONSUMERS

• There are three basic stages of foreclosure in California: Pre-foreclosure, trustee’s sale, and repossession, often called an REO or real estate owned by the bank.
• Pre-foreclosure homes are in the foreclosure process, but have not yet been auctioned.  Owners of pre-foreclosed homes often try to sell the properties because they are “underwater,” meaning they owe more on the mortgage than the home currently is worth.  Many homeowners attempt to sell via short sale, where the lender must agree to accept less than the amount owed on the mortgage.  Buying at this stage of foreclosure often is a complicated and slow process. However, buyers of pre-foreclosed properties often are given the opportunity to inspect the home prior to purchasing, whereas this is not always the case when buying at other stages of foreclosures.
• The second basic stage of foreclosure is the public auction at a trustee’s or foreclosure sale.  Homes in this stage often are well priced, but also come with challenges to buy.  These homes may not be available for inspection and buyers may later discover the property needs numerous repairs.  As a result, many of the homes at auction are purchased by investors and contractors who have experience working with homes needing numerous repairs, or taken back as REO by the foreclosing lenders.
• If a home does not sell to a third party at the trustee’s auction, the bank takes the property--the final stage of the foreclosure process. Although homes in this stage typically do not offer buyers the best prices, buyers generally can perform a thorough inspection of the property prior to closing.

 

 

County Properties, 23 years of brokerage experience, trust and a Member of the local Better Business Bureau! We offer free counseling in real estate regarding; 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 at www.countyproperties.net/. 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 and close escrow in 45-60 days or less. Learn more about mortgage relief options and how to take advantage of our FREE REALTOR (R)  CONSULTATION & ATTORNEY SEVICE.  or go to www.ShortSaleRealtors4U.com

Please feel free to contact me today for free counseling at (619) 301-0200 or Toll free (866) 825-8124 visit our website, click http://www.shortsalerealtors4u.com/  or www.CountyProperties.net

 

County Properties video from “San Diego Living.” TV Foreclosure alternative support for homeowners

http://www.sandiego6.com/content/sdl/content/detail/County-Properties/KBK9MlefCE-HlgrhgiZpZw.cspx

Please enjoy our viewing on San Diego Living, on 4/21/10, Channel 6 The CW.

This interview on San Diego Living,  talks about  the Real Estate market, including short sales, and how we can help guide you thru the many options associated with Foreclosure alternatives. Hear how our company, County Properties, is uniquely ran,  so we can fully focus on serving your needs and empowering you as a educated home owner or buyer. Our dedicated Foreclosure alternative website will inform you about Wachovia’s fast track short sale program and possible financial incentives the banks are offering, between $1,000-$5,000.

http://www.shortsalerealtors4u.com/

Thank you for watching!

From County Properties

 

XETV l Bay City Television

County Properties will be on TV Wednesday, April 21st “San Diego Living.”

County Properties is going air. Please enjoy our viewing on TV Wednesday, April 21st “San Diego Living.”  Channel 6 CW TV live some time between 9AM and 10AM.

Ou discussion will cover the new revised government guideline related to loan modifications and short sale HAFA programs.

The new interview video will be posted on website for debt relief for homeowners www.ShortSaleRealtors4U.com, WachoviaFastShortSale.com our blog and our home website  www.CountyProperties.net, soon after the air date.

Thank you for watching!
Thank you “San Diego Living.”  Channel 6 CW TV  XETV l Bay City Television

From County Properties

 

XETV l Bay City Television

Price reduction! 4 units for sale El Cajon California

Price reduction! 4 units for sale El Cajon California

$595,000-$675,000 variable price range-seller will entertain offers.

713, 715, 717 & 719 Chamberlain Ave
El Cajon, Ca 92020

4 units all 2 bedroom 1.5 bath 902 square feet all tenant occupied. Built in 1982

Great opportunity, 4-plex being sold. Each unit has already been mapped, having their own APN #'s. Giving the option to sell units individually. Seller will remap to one APN if necessary for finacing. All units have been fully refurbished and remodeled on the inside and outside, very modern and tastefully done. All new AC units, landscaping. There is a open parking plus carports. Upper units have their own balcony and lower units have patios. Floor plans are open with ample windows letting in a lot of light.

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 feel free to contact me today for free counseling at (619) 301-0200 or Toll free (866) 825-8124 visit our website, click CountyProperties.net

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.

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C.A.R. releases 2009-2010 “State of the California Housing Market”

Affordable home prices, tax credits for home buyers, historically low interest rates, and a large number of distressed properties prompted many first-time home buyers to enter the market in 2009, according to C.A.R.’s 2009-2010 “State of the California Housing Market” report released today.

California’s median home price hit bottom in February 2009 at $245,170.  Since then, the median home price has increased steadily in month-to-month comparisons, but remained below 2008 levels throughout 2009.  The annual median price is projected to increase to $280,000 in 2010 from $271,000 in 2009.

Homes priced $500,000 or less dominated the sales mix throughout 2008 and early 2009, but peaked at 85 percent in January 2009.  Meanwhile, the market share of homes sold for more than $500,000 increased from 15 percent in January 2009 to 25 percent in July 2009, holding steady around that figure for the remainder of last year. click to view 2009-State-CA-Housing report

 

Click here to get loan information before the rates go up. To get started on viewing homes, condos, investment properties, pre-foreclosures, bank owned foreclosures (REO's) or thinking of selling your property, please contact me today for free counseling at (619) 301-0200 or Toll free (866) 825-8124 visit our website, click www.CountyProperties.net

By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net  and I’ll be happy to follow up and take great care of them.

Fewer homeowners see home values falling

A recent report shows that one in five U.S. homeowners owed more on their mortgage than their home was worth in the fourth quarter; however, California’s housing market is bucking the national trend and is telling a different story.

• Although the report by Zillow.com claims that the percentage of American single-family homes with mortgages in negative equity rose in the fourth quarter, the report does not account for seasonal changes.  The traditional home-buying season is April through August.  Historically, this time period also is when median home prices rise.  In September, median home prices generally show a declining trend, and remain steady from November through February.   The change in the median home price noted by Zillow.com is a typical year-end seasonality adjustment in price.

• Unlike the national median home price, the month-over-month changes in California’s median home price for 2009 were stronger than the long-run average.  Low interest rates and tax incentives led to a rise in the demand for housing.  As a result, housing inventory was constrained and created upward pressure on home prices.  

• California’s housing market has shown signs of stabilization since early last year.  Sales of existing, single-family homes bottomed out in August 2007, and the median home price reached its trough in February 2009.   In December, California’s median home price was 25.1 percent above the low for the current cycle.

• In December, the median price of an existing, single-family home rose to $306,820, an 8.4 percent rise year-over-year, the second consecutive year-over-year increase, and the 10th consecutive month-over-month increase, according to C.A.R.’s December sales and price report.

• Although home buyers should not focus solely on future home price appreciation, homeowners who purchase a median-priced house, live in their home for at least five years, and sell it at the then current median price, have averaged an annual rate of return of more than 11 percent, according to data collected by C.A.R. over the last 40 years.

www.CountyProperties.net

FHA 90-day anti-flipping rule waived

The Dept. of Housing and Urban Development (HUD) announced Friday it will eliminate for one year the Federal Housing Administration (FHA) 90-day anti-flipping rule.  FHA’s anti-flipping rule generally prohibits insuring a mortgage on a home owned by the seller for less than 90 days.  That rule already has been waived for certain transactions, including REOs.  Beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors.  This one-year waiver will give FHA buyers access to a broader array of recently foreclosed properties. 

Under the temporary waiver, all transactions must be made at arm’s-length and may require additional documentation of improvements and justification of certain price increases.  Additional documentation may include a second appraisal and a property inspection ordered by the lender.

 

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 feel free to contact me today for free counseling at (619) 301-0200 or Toll free (866) 825-8124 visit our website, click CountyProperties.net

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.

 

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.