Monday, December 21, 2009
Friday, December 11, 2009
Saturday, October 24, 2009
Buying a home is getting tougher, but what can you do?
n September 2007 every news channel was reporting The Bubble has officially burst and home prices were on a steep decline. As a matter of fact that was the news until mid 2008. In mid 2008 the news had caught up with the time to find that this is it… Get out there and buy. Headlines, Were: It time to take Advantage of the seriously good deals.
From January of 2008 till about October 2008 Los Angeles County had over 15,000 bank owned properties & Orange County was tipping the scales with about 9,500 bank owned properties on the open market. During this time Buyers came out in droves to get a “Steal of a Deal”. Especially once they announced the first time buyers tax credit for $7,500 then changing it to $8,000. It was as if any buyer during the housing boom that got pushed out of the market due to pricing all came out with a vengeance. And really who could blame them? The banks & servicing companies were slamming the real estate market with inventory levels that most realtors thought we’d never sell them all. At one point Los Angeles County & Orange County alone had a surplus of 18 months of homes to sell. That simply meant if no other homes were to come onto the market it would take us 18 months to sell them all. However, that wasn’t the case. As of this morning Los Angels County has 1,294 bank owned properties & Orange County has 315. So with that little tid bit of information you can see why you’re seeing multiple offers on homes you’re trying to buy.
Buying a home in Southern California has gotten a lot tougher and a lot of people simply keep asking why & what can I do? As a matter of fact I would venture to say we are seeing this across the country.
Let’s start with a little history, so to speak . In September of 2008 the government imposed a moratorium stopping all foreclosures. This was one of those double edged swords. On one side we have millions of home owners with predatory loans that were or were just about to adjust to levels that they could no longer afford the home & some simply had a job lose which again created a financial hardship. I personally cannot speculate what financial hardship each and every home owner has been going through and why, but rest assure that was what the powers to be were wondering too. Hence why the banks & bank servicers’ were instructed to go back to each of these home owners and try to work something out. On the other side of the sword this has created the lack of inventory levels that home buyers are now faced with now.
So, what’s a buyer to do? Well, first please understand that had they not taken this action of imposing the moratorium and had they not kept extending these time lines for the banks and servicing companies to get to all the home owners… Simply put our news channels would be talking about the millions and millions of homeless families that were on our street because of this which wouldn’t do anyone any good. Personally that would have devastated me as I think there is a way to solve the homeless population and mark my words someday it will come to pass that I will have had something to do with correcting that, but that’s a whole other story.
Secondly, know that the banks are foreclosing again, but also know they have to make sure that no one is living in the homes, that they are safe, they must be cleaned out, and priced which is taking a little time. Also know that the banks are not going to flood the market again with homes. We have plenty coming there is no doubt, but we are not going to see the flood we had in 2008 as this would only create more of the same.
Thirdly, be pre-active. Make sure you’re keeping your loan approval up to date. What do I mean by this? Well, every time you get paid call your lender and fax him/her a copy of your check stub. The same goes for any type of bank statement you get. Also watch the date on your pre-approval letter if it’s reaching 60 days old and you have supplied your lender with current information make sure he/she gives you a newer pre-approval letter. This would also be a good time to start contacting other banks for pre-approval letters as a lot of the banks are requiring pre-approval letters from other banks. If you’re wondering which banks to talk to first and foremost I would talk to your Realtor, but consider the big ones first… ie, Chase, Bank of America, Wells Fargo, Wachovia, Prospect Mortgage, Pacific Mercantile Bank, Citibank, and HSBC. Again, talk to your Realtor he/she can tell you what banks to contact for your area, but for Southern California those are the big 8 banks we have needed approvals for our clients.
In addition, now would also be the time to start aligning yourself with the right Realtor if you haven’t done so already. Make sure he/she knows whats going on in your market place. Interview a few so that not only do you find someone who really knows what they are doing, but also someone you feel comfortable with. Remember this; don’t pick someone because you know them pick someone who’s going to get you the right house, at the right price & terms, and at the right time. Be very upfront with this person and expect the same in return. When hiring a realtor he/she might ask you to sign a buyer/broker agreement are they bad, no. What they are is a commitment between you and that agent/broker that he/she is going to work hard for you and in return you agree to submit offers through them only. The best example I can give you is a short-term marriage.
Another thing you could do in the meantime is start checking out areas. Find out where it is you really want to live. If you have small children and schools are important now would be the time to do your homework. Do not depend on someone else to know the schools inside and out. Get the information first hand so you make the right choice. So many times I have seen home buyers wait until they find a home and then find they have make a bad choice. Also please make sure you’re know the price point for these areas. After all, no area is a good area if you can’t afford it.
Last, but certainly not least keep in contact with your realtor. Talk to him/her about what you’ve been seeing online or what you have been seeing while driving around certain areas so he/she can guide you in the right direction. Be patient and try to enjoy the journey of buying a home. Your home is out there it just hasn’t made it to the market yet.
We certainly hope this information helps you. If you have any questions, comments, or concerns please contact us… We’d be happy to help you any way we can.
Melissa Bayles, GRI-RE Masters, Realtor
www.TheRealEstateGeeks.Net
Info@TheRealEstateGeeks.Net
Tuesday, September 29, 2009
Wednesday, August 5, 2009
Monday, August 3, 2009
A Note from our loan department
The employment report will be the most important release this week. With so many data releases expect the market to be very volatile.
LOOKING AHEAD
Economic
Indicator
Release
Date & Time
Consensus
Estimate
Analysis
Construction Spending
Monday, Aug. 3,
10:00 am, et
Down 0.6%
Low importance. An indication of economic strength. A significant decrease may lead to lower rates.
ISM Index
Monday, Aug. 3,
10:00 am, et
46.5
Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.
Personal Income and Outlays
Tuesday, Aug. 4,
8:30 am, et
Down 1.0%,
Up 0.3%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
ADP Employment
Wednesday, Aug. 5,
8:30 am, et
Down 340k
Important. An indication of employment. A larger decrease in payrolls may bring lower rates.
Factory Orders
Wednesday, Aug. 5,
10:00 am, et
Up 0.5% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Employment
Friday, Aug. 7,
8:30 am, et
9.6%,
Down 333k
Very important. An increase in unemployment or a large decrease in payrolls may bring lower rates.
Consumer Credit
Friday, Aug. 7,
2:00 pm, et
Down $4.1 billion Low importance. A significantly larger than expected increase may lead to lower mortgage interest rates.
Personal Income & Outlays
The personal income and outlays release is a monthly report issued by the Bureau of Economic Analysis (BEA). The data is important because it is thought to provide a solid indication of future consumer demand. The personal income component is primarily a measure of wages and salaries. The outlays component is primarily a measure of spending on goods and services. Together the figures provide analysts valuable insight into consumer economic standing and consumption.
The prior release showed wages and salaries decreased $12.4 billion. Future decreases may adversely affect consumer spending and the entire US economy. Decreased wages coupled with tighter borrowing restrictions make it difficult for consumers to spend money.
It is important to note that no single economic indicator can consistently predict the future of the economy. However, the personal income and outlays report is a closely watched release. The consumer remains a vital component of the US economy.
Now is a good time to take advantage of mortgage interest rates at their current levels to avoid exposure to future market volatility.'
Thursday, July 30, 2009
Sunday, July 26, 2009
Southern California Home Buyers & Investors
With Southern California seeing it's lowest inventory in 3 years...
What kind of market do you think it is?
What do you think is going to happen to the inventory levels in the next 3 months?
What do you think is going to happen to the prices in the next 3 months?
What do you think is going to happen to the interest rates?
Will the $8000 tax credit for first time buyers disappear on December 1st 2009?
I look forward to reading your thoughts!
Melissa Bayles
The Real Estate Geeks
www.TheRealEstateGeeks.Net
info@TheRealEstateGeeks.Net
Friday, July 24, 2009
Wednesday, June 17, 2009
California Foreclosure Prevention Act Goes Into Effect
Frequently Asked Questions for Commercial and Industrial Banks, Savings Associations and Credit Unions
- What is the California Foreclosure Prevention Act (CFPA)?
- Where are the legal provisions of the CFPA found?
- What is the effective date of the CFPA?
- Who is subject to the CFPA?
- Which agency do I submit my application for an exemption to?
- Who should file an application with the Department of Financial Institutions?
- How do I obtain an exemption from the provisions of Civil Code Section 2923.52(a)?
- Where do I get the form for the Application for Exemption?
- How do I file the application?
- How long does it take after an application is filed to obtain an exemption?
1. What is the California Foreclosure Prevention Act (CFPA)?
The CFPA modifies the foreclosure process to provide additional time for borrowers to work out loan modifications. Civil Code Section 2923.52(a) requires an additional 90 day period beyond the period already provided before a Notice of Sale can be given in order to allow all parties time to pursue a loan modification to prevent foreclosure of loans meeting certain criteria identified in that section. An exemption from the additional 90 days is available for mortgage loan servicers that have implemented a comprehensive loan modification program.
A mortgage loan servicer who has implemented a comprehensive loan modification program may file an application for exemption from the provisions of Civil Code Section 2923.52(a). A mortgage loan servicer is not required to apply for the exemption; however, beginning June 15, 2009 all mortgage loan servicers who have not applied for an exemption are required to wait an additional 90 days before filing the Notice of Sale when foreclosing on a residential mortgage loan meeting the criteria established in Civil Code Section 2923.52(a).
2. Where are the legal provisions of the CFPA found?
On February 20, 2009, the Governor, signed ABX2 7 and SBX2 7, which established the California Foreclosure Prevention Act in the Civil Code. On June 1, 2009, Subchapter 4, Chapter 1 was added to the California Code of Regulations (CCR). These emergency regulations clarify the application of Sections 2923.52 and 2923.53 of the Civil Code.
The law and rules are available on our website www.dfi.ca.gov/cfpa or can be found at www.leginfo.ca.gov or www.oal.ca.gov.
3. What is the effective date of the CFPA?
Beginning June 15, 2009 all mortgage loan servicers who have not applied for any exemption are required to wait an additional 90 day period before filing the Notice of Sale when foreclosing on a residential mortgage loan meeting the criteria established in Civil Code Section 2923.52(a).
4. Who is subject to the CFPA?
All entities that service residential mortgage loans on properties located in California are subject to the CFPA. This includes companies licensed by the Department of Corporations, Department of Financial Institutions, the Department of Real Estate and any other entity that services loans on properties located in California, such as national banks.
5. Which agency do I submit my application for an exemption to?
Department of Financial Institutions
Foreclosure Exemptions
1810 13th Street
Sacramento, CA 95811-7118
Electronic mail to foreclosures@dfi.ca.gov
6. Who should file an application with the Department of Financial Institutions?
Commercial and industrial banks, savings associations and credit unions who wish to obtain an exemption from the additional 90 days required under Civil Code Section 2923.52(a) should file an application with the Department of Financial Institutions.
In addition, any other entities servicing residential mortgage loans on properties located in California that wish to obtain the exemption, and are not required to file with the Department of Financial Institutions, Department of Corporations or Department of Real Estate as indicated in Section 2031.7 of the California Code of Regulations should file an application with the Department of Corporations. This would include entities such as national banks that are not licensed by the Department of Financial Institutions, and are not headquartered in this state.
Organized in this state servicing mortgage loans (for purposes of this regulation, the phrase "organized in this state" means institutions headquartered in this state)
An application will not be rejected by a department based upon an applicant’s inadvertent failure to file with the designated department.
7. How do I obtain an exemption from the provisions of Civil Code Section 2923.52(a)?
The licensee must submit the Application for Exemption from the Section 2031.7 of Subchapter 4, Chapter 1 of the California Code of Regulations (CCR).
8. Where do I get the form for the Application for Exemption?
The form is available for download on the Department’s website www.dfi.ca.gov/cfpa.
9. How do I file the application?
The application must be downloaded, completed and mailed to the following address:
Department of Financial Institutions
Foreclosure Exemptions
1810 13th Street
Sacramento, CA 95811-7118
Electronic mail to foreclosures@dfi.ca.gov
10. How long does it take after an application is filed to obtain an exemption?
A temporary order exempting the applicant will be issued effective the same day the Department receives an application that is substantially complete. After review of the application, once it is determined that the company has a comprehensive loan modification program, a final order exempting the applicant will be issued.
A list of temporary and permanent exemptions is posted on the DFI Web site www.dfi.ca.gov/cfpa.
This information was obtained directly off of the State of California DFI Website
Saturday, June 13, 2009
Sunday, May 10, 2009
Is consumer confidence back up in the Real Estate Market?
Interesting question… It is up to you the consumer to decide for yourself if the information you perceive is true and correct no matter what the source of information is and then act upon it accordingly. Think about this for a minute… Have you ever had a friend or a relative (you know the know it all of the group) tell you something that just blew your mind only to find out the story/information was a little off? Me too!
I decided to check the facts this morning and made this chart for you… This chart was based off of all sales found on the MLS separated by county. Dates used were Jan 1st 2008 to May 10th 2008 and did the same dates for 2009 and on average there is an increase of sold homes by about 65%.
# of Homes sold
Los Angeles 2008 15,101 vs. 2009 19,064
Orange 2008 6,265 vs. 2009 8,325
San Bernardino 2008 3,544 vs. 2009 8,141
Riverside 2008 6,493 vs. 2009 12,834
Overall there has been a 65% increase of sold homes...
What does this mean for a buyer? Is it time to buy? Does it mean now is the bottom of the market? Does it mean you have to align yourself with a Realtor who thinks outside of the box? I would.
What does it mean for you as a seller? Does this mean you can sell your home? What is the next step? Do you need a realtor the 5 Step Home Team would like a chance to earn your business.
If you’re ready for some real facts about buying, selling, or investing in this market... call the 5 Step Home Team… We are here to help you make an informed decision.
Melissa, Kendra, Chip, and Antoniette
714-720-2555
Tuesday, April 28, 2009
Some of you may be wondering why you continue to see the same listings showing up on your online search. Well, in September of 2008 the government imposed a "30 Day Moratorium". In simpler terms it means all banks were instructed to go back to current homeowners and see if they could work something out to keep people their homes. This was a great idea however, they were given 30 days to complete the assignment. As you can imagine 30 days is not enough time to call everyone in one city, let alone an entire country. As a result, many extensions were given between now and September 2008.
After months of effort Freddie Mac & Fannie Mae quietly lifted the moratorium on April 2nd, 2009. We are not going to see the listing appear overnight, but please know they are coming. Though our team doesn't expect you to find your dream home online please start checking your search a more frequently. In the coming weeks, new listings will slowing trickle into the market and then there should be plenty of homes for everyone in all price ranges.
What should you do in the meantime?
1. Start getting approved for a home loan.
Why?
First and foremost of importance you want to make sure your FICO Score is a 620 and also make sure everything that is on your credit report is in deed yours.
You also want to make sure you know how much home you can afford. There is nothing worse than finding your dream home and finding out it doesn't work for your budget or maybe worse yet you're looking at one dollar amount and not find anything at all when you could have afforded a little more. In either case make sure you know what your housing budget is so you can still afford a pizza once in awhile, so to speak.
We also have a check list of items you'll need to get approved for a loan (let us know if you need a list)
Please note I know some of you are all cash and that's great just make sure you have a copy of your bank statement handy when get together
If you're already pre-approved that's great too, but make sure you go back to your lender and update your file and get a current pre-approval letter so you're ready to go. And if you'd like to shop your loan to make sure you're getting the best deal let us know and our team will help you with that as well.
2. Keep checking your online home searching tool. If your not getting it please let us know so we can reset your search.
Things we will need to know
How many Bedrooms you have to have... example if you only need two you will get two or more bedrooms within your search
How many Bathrooms you have to have
Your Maximum price range that was set by you and your lender... In this case you will get everything up to that dollar amount
Cities you'd consider living in
Anything else that is important to you about your home...
By the way you can always adjust your online search as well, but one thing to note when adjusting your search don't check the boxes with garages as this feature doesn't seem to work correctly with the MLS.
3. Ask questions
We are here to help guide you in your journey into home ownership and we do not take it lightly so don't be shy... If you have questions please let know... We want you to feel comfortable with the entire process.
As a matter of fact the #1 Question every buyer has is... How much do you charge? The answer is ZERO. All Buyer Real Estate Services are FREE
We also have references so don't be shy to ask for them either! So don't wait call now 714-720-2555