Will They or Won’t They

Rubio&Prowse

Your guess is as good as mine! The Mortgage Debt Relief Act will expire December 31,2012. Unless congress signs the paperwork required to extend the Act. The looming “Fiscal Cliff” is Washington’s Main focus so any resolution to other legislation like our little Act is secondary until the fiscal Cliff is addressed!

If you are considering a Short Sale the days of automatic debt and tax forgiveness may well be a thing of the past. But don’t despair, that does not mean a Short Sale is no longer an option! In fact a Short Sale is a much better option for your financial health then walking away and letting the bank foreclose or signing a Deed in Lieu. You need the expertise of a Realtor knowledgable in negotiating Short Sales like Rubio and Prowse!

Linda Rubio and Nikki Prowse can negotiate with the bank to release you from the responsibility to pay back the outstanding balance on your mortgage. We can get the bank to agree to the Short Sale and provide you with written proof your debt is Forgiven. This is not the case with a foreclosure! The bank can and will come after you for that money. It’s just a matter of time. The banks have the resources and teams in place reviewing each and every defaulted mortgage, please believe, they will find a way to collect eventually. Get informed and get help, a Short Sale is a great solution to ending a nightmare so that you can refocus on your American Dream.

Media Inflicted Prophecy? Or Where Have All The Buyers Gone?

Real estate fluctuations have been the norm since the concept of real estate but with all the claims that the economy is on the mend (all be it slow) we should be experiencing some stabilization in the real estate market. If in fact this were true we should have indicators. Granted we have indicators, but they point to a decline not a recovery or market stability.

Of course I am speaking of my experience mainly in Southwest Riverside County, but I hear the whispers of colleagues from other areas of California expressing the same concerns. “What happened to the buyers?” Early spring seemed to indicate that the market was picking up some steam in that we had a lot of buyers out looking and successfully closing escrow leading us to be somewhat hopeful for a busy summer. The spigot that was
pumping out buyers in the early spring has been “strangled” to a trickle.

So as a thinking human and Realtor, (those of you who don’t like Realtors might not associate thinking human with Realtor, but I digress) I ponder the sudden
decline of buyers, who would normally be looking to buy during the summer
months. All the pieces are in place for a booming summer real estate market; the prices are very low, the interest rates are also still very low, we have an abundance of inventory! So what is the deal? It’s obviously not just one issue or event causing this trend but a series of unfortunate events.

The horrific economy is at the top of the list along with fears of layoffs and pay cuts. The lack of people who actually have jobs and the means to pay a mortgage is another huge factor. Lending restrictions are so severe that keep people who have the means to pay a mortgage from qualifying for one. I would have to say that the very same media that has been insisting that the economy is improving (all be it slow), is also suggesting that
housing prices are declining and we may double dip. So of course this affects
buyer behavior, why buy now when you can get it cheaper in the future? Unfortunately this thought process may actually propel us into that double dip the media is predicting.

The Joy of Working a Short Sale

I have often written about the joyous experience I have every time I work a short sale.

Well today is no different. The challenge on our most recent short sale listing is to get the bank to actually consider a valid offer. I decided to share my most recent experience with HFC for no other else than to vent or share the frustration with my colleagues.

The wisdom and grace that these individuals’ possess is truly awe-inspiring! After being treated like an ignorant buffoon I was told to price the property for $50,000 over current neighborhood value. I tried to communicate this fact to the non aggressive and soft-spoken negotiator but was further degraded as ignorant because the bank (in its infinite wisdom) had preformed a BPO from an out of the area agent who by the way used comps from September of last year. But they think I’m the idiot.

After a heated discussion and being transferred to a supervisor we get down to what they really want. The bank is suggesting a Deed in Lieu.

This Oh So Knowledgeable Supervisor asked me why in the world my client would be opposed to a Deed in Lieu. I told him that she would actually like to keep her credit score from hitting zero and possibly buy again. Well this supervisor told me that a Deed in lieu would have absolutely no negative effects to her credit. Yea right like drinking poison has no negative effects on a body! I advised him that any creditor would view a Deed in Lieu of Foreclosure on a credit report negatively for at least 5 to 7 years. He asked me in his very condescending voice “where in the world did I get that idea?” Ummmm…let me see…where did I get that idea?  Maybe….I know how to read rate sheets and guidelines!!!

At that point I hung up because you can’t win an argument with an ignoramus!

I gave my client the information and asked her to please consult her CPA or an attorney to make absolutely sure the Deed in Lieu was not in her best interest. After a week she confirmed that she did not want anything to do with the Deed in Lieu of Foreclosure and I would like to add that everything I warned her about are the true consequences of signing the house over to the bank.

So I did price the home for the amount the bank insists it is worth and it has sat for 3 weeks without one agent calling for a showing. But now that I put the price back to where it should be will this bank consider any forthcoming offers? I guess you’ll just have to check back and see what happens…

What Does That Have To Do With Me?

                                                                                              

We have all heard about the protests in Egypt, Libya, Jordan, Saudi Arabia, the list seems to grow daily.  Somali pirates hijacking oil tankers and pleasure yachts. In China inflation spikes to just under 4% in January alone. The price for a barrel of oil rising to levels we may have never before experienced.  More and more banks forced to close their doors. Interest rates for home loans on a roller coaster and more and more short sales listed every day. Unemployment/ underemployment either way it’s bad news. Not to mention its tax season!

All of this has a direct effect on us right here in the Temecula/Murrieta Area. The amount coming in verses going out does and will affect purchasing, most especially when one is in the market for a home. Economic instability can make some very wealthy but unfortunately the majority of people do not know how to interpret the tea leaves and they lack the funds to invest. Some investments are worth the risk if you know what to put your hard-earned dollars behind. Real estate at the current values is almost always a sure thing.

In cities like Temecula and Murrieta where the standard of living is high, our valley stands out. Judging from the amount of foreign investment dollars coming to this valley it seems that we are very attractive indeed! Wondering why? Well it is a very simple combination: they have the cash and we have very affordable properties that can potentially earn a big return as a rental then a flip in the future. No worries about a lack of renters because the schools alone in this area attract families from all over the state. Foreign investors have figured it out so now it’s time for enterprising local to start thinking out of the box.

I understand that raising capital in this economic environment can prove a bit of a challenge and for some getting a loan requires the rights to your first-born. So what other options could there possibly be? Well believe it or not there are some out there with equity in their homes who may be willing to work with buyers that can afford a monthly mortgage and a nice down payment but they cannot qualify for traditional financing. A lease with the option to purchase, having the owner carry the note is also an option but in my opinion the best option at the moment is a wrap.

A wrap is when a seller owns a home that still has a mortgage on it and would like to sell but maybe selling in the current market is not so attractive. Your are a buyer that wants and can afford a nice size down payment and you can afford the monthly payment but you’re not considered credit worthy in the traditional banking sense. Well people still need shelter and the majority would prefer to own verses rent.  For example a seller accepts an offer with a $70,000 cash deposit (the down payment) the monthly payments will cover the existing mortgage payment as well as an additional percentage each month for the seller and the escrow account that handles the monthly payments. This option may not work for everyone but if traditional financing remains rigid I think we will see more and more of these types of solutions. Those willing to take a calculated risk will rise above the economic malaise!

Harveston Homes In Temecula

Right in the heart of Temecula sits the beautifully planned urban development of Harveston.

Harveston is a lovely community of 9 neighborhoods all situated around a pristine lake in a 17 acre park. This community was established in 2003, and it boasts 9 neighborhoods with 1,587 single family residences and townhouses as well as 300 apartments units at the Cape May Apartments. The prestigious list of builders that were part of the Harveston development is: Lennar Homes, Christopher Homes, William Lyons Homes and Meritage Homes. Each builder designed the individual neighborhoods to complement each other but also to reflect its own character, resulting in very charming facades and architecture giving each home distinct curb appeal.

The amenities at Harveston are superb, not only are the lake and the surrounding park a huge focal point but the community boasts a Junior Olympic Pool with a spa, Splash Park, community center, 19.5 acre sports park. The community is also home to an excellent elementary school, Ysabel Barnett Elementary, ABC Daycare for preschoolers and a Senior Care facility. Did I mention that the community has tot lots and walks throughout the entire community and you can fish the lake as well as rent a little paddle boat?

The homes in Harveston are within walking distance to the Temecula Promenade Mall as well as a plethora of restaurants. The I-15 and I-215 are also just moments away too!

Anyone looking to own a home in Temecula should definitely consider Harveston!

First Time Homeowners Find an Opening in Hemet

It seems that the entire housing market world-wide has crashed, while some areas are starting to recover somewhat (certainly not to pre-crash levels) some continue to drop. One such area is Hemet, California. 

Hemet was mainly a retirement community in the past but the area is making a comeback for young families. The area has become very attractive because of its close proximity to Temecula. Several years ago investors developed the area heavily and built many lovely communities with beautiful homes and all the amenities to serve these new neighborhoods. During the height of the market these homes sold out  at peak prices and as we all know the values have declined but in Hemet they are below half of what they once were. So now is the time to take advantage of the market decline and buy for a lot less than it costs to build!

Many people who thought that they may never be able to buy a home because it is difficult for them to save the closing costs and the down payment but they can certainly manage the monthly payment will want to consider purchasing in Hemet. Some listings are as low as $50,000, seriously! Sure if one is purchasing a home for $50,000 there will be some fixing up involved but when one weigh’s the benefits of homeownership versus renting the scales tip dramatically towards homeownership.

So let’s break this down. If an offer is accepted for $50,000 under an FHA (for the first time home buyer) Loan at an interest rate of 5.25% for 30 years with 3.5% down and closing costs paid for by our new homeowner the monthly payments are a whopping $436.21! The buyer would need a little over $4,000 in order to close escrow. Sometimes the seller may be willing to help a buyer with closing costs or a portion of the down payment in which case the funds needed to close can be considerably less!

Where can you find rent that cheap? And get the tax breaks? An hour from OC and San Diego?

Horse Property for Sale in Temecula

Temecula is still a great place to find some incredible deals in real estate, especially when one starts to compare prices in the OC and SD. One type of property in particular seems to attract a lot of attention from people around the state and sometimes from other parts of the country…Horse Property. There are a few things to consider when searching for equestrian property in Temecula (Murrieta too).

First and foremost one needs to keep budget in mind (max approval amount). List price is sometimes just the tip of the iceberg.  Several areas in Temecula zoned for horses are in planned communities that have high homeowners association dues and or higher property taxes (special assessments, aka mello roos) bringing the monthly payments to an unpalatable amount. It can also be the difference between qualifying for the loan or not.

Another consideration is that many listings will state the property is zoned as horse property, admittedly they probably are, but 9 times out of 10 the land is not suitable for a corral or stables.  These horse properties in Temecula are usually listed well below properties that have flat usable acreage. Obviously the more horse friendly facilities included in the sale such as corrals, stables and the like will all add to the cost of the property. So if you come across a listing that appears to be perfect make sure you do your research first, or better yet hire a competent Realtor (who lives and works the area) to do it for you!