Hello-hello, People.
Just some advice when you're out with your realtor (are you seeing someone else?) and you find a house you like. Write an offer. I know, it goes against everything we've been taught. Patience, self-control, "fools rush in", look both ways before you cross the street. All sound advice in every other situation, but not when buying a home (at least homes under $500,000) in Southern California right now. Why?
The housing inventory in So-Cal is ridiculously low. If a home is priced at market value (again, this usually applies to homes under $500K but I've see it happen on more expensive homes) then it will gather several offers to purchase within a week of being on the market. There's just not that many houses on the market for sale. But the economy?
Economy, schemonomy. There are tons of 1st time buyers and investors who are out there going toe to toe over low priced houses that they can buy with low interest rates. The 1st time buyers get the $8k tax credit and the investor gets a nice rental to house all of the people who lost their home. Pandemonium.
So, to reiterate, if you're digging on a house, pull the trigger and write the offer. It's not a car. You have contingency periods that can get you out of the contract with an untampered with deposit.
Let me know if I can help.
God Bless.
Tuesday, February 16, 2010
Monday, February 15, 2010
Loan Mods Ain't Gonna Help
Hi People.
It looks like we're in for another record year of foreclosures, short sales & deeds in lieu. Looks like the only thing we will most likely not see is the ever elusive loan modification.
The Loan Mod. One of the country's hope in slowing down the depreciative home values. Seen prominently in it's early "trial" stages but rarely seen after that. Now, everyone knows someone who knows some one's friend who just did a loan mod and that person's mortgage is now $10 a month plus a Bologna sandwich. A little bit of an exaggeration (not much), there are a few people who have completed their Mods.
The problem is that, according to The Wall Street Journal, " Some borrowers are catching up on payments after having their loan terms modified, but S&P says current trends suggest that 70% of such borrowers eventually will redefault". At that rate it doesn't matter who's getting a loan mod done. That's just a stay of execution.
How will we keep afloat? There is a ton of action out there from 1st time home buyers and investors (thank goodness) that are bailing water in the sinking boat. How long can they keep it up? For a good while if the economy continues to recover and interest rates don't fly through the roof. If not.....?
Click on the title for The Wall Street Journal article and tell me I'm full of it.
God Bless.
It looks like we're in for another record year of foreclosures, short sales & deeds in lieu. Looks like the only thing we will most likely not see is the ever elusive loan modification.
The Loan Mod. One of the country's hope in slowing down the depreciative home values. Seen prominently in it's early "trial" stages but rarely seen after that. Now, everyone knows someone who knows some one's friend who just did a loan mod and that person's mortgage is now $10 a month plus a Bologna sandwich. A little bit of an exaggeration (not much), there are a few people who have completed their Mods.
The problem is that, according to The Wall Street Journal, " Some borrowers are catching up on payments after having their loan terms modified, but S&P says current trends suggest that 70% of such borrowers eventually will redefault". At that rate it doesn't matter who's getting a loan mod done. That's just a stay of execution.
How will we keep afloat? There is a ton of action out there from 1st time home buyers and investors (thank goodness) that are bailing water in the sinking boat. How long can they keep it up? For a good while if the economy continues to recover and interest rates don't fly through the roof. If not.....?
Click on the title for The Wall Street Journal article and tell me I'm full of it.
God Bless.
Friday, February 12, 2010
Realtor Pa-Lease!
People, you are excused. This is a message for Realtors.
Realtor, pa-lease! When you put a house on the market there are certain things that should be put in place in order for us to all have a good and efficient home selling/ home buying time. Certain etiquette to be adhered to. There are plenty of right ways to do things and not too manys ways to mess them up. You kind of have to try to screw someone over in order to do it. Most of the time.
Case in point. A client of mine wanted to see a particular condo at 7:30 just last night. I, a realtor who has some learnin', looked it up on the MLS to see what the proper showing instructions were. "Temporary Resident. Show with 2 hour notice. Thank you for Showing! Lockbox Y (meaning it has a lockbox)" is what the realtor wrote. That's all it said. It did not say I needed an appointment (it is customary that if an appointment is needed it is stated plainly). I called the # given around 2pm and left a message that I would bring my client at 7:30 that evening. No one called me back to say "NO", so I (as anyone else would) felt is was good to go. Easy, right?
We get to the 7:30 appointment at 7:28, I figure it's not too early and so I ring the door bell. Nothing. I ring it again and again. Still nothing. I knock on it. I see a light go on. No one comes to the door. I knock like a cop. Nothing, but I hear movement inside. I figure I've done my part and now it's time to use the lockbox key. I go to the lockbox and get the key.
I decided to knock one more time like a Gestapo agent in 40s Germany. Nothing. I take the key and open the door and immediately see an elderly lady in a room right off of the entry on a laptop. "Hi, I'm sorry..." is what I said to the ignoring lady. "Mam? Excuse me. Mam? Hello. Mam?" is what I was blathering for a full minute before I notice some sign language charts on the wall. "She's deaf" is what my investigative intuition told me. So, being as smart as I am, I decided to yell louder "Mam"? Mam? Hello. Excuse me.". Nothing.
I decided I needed to get her attention by waving my hand and bending down to her eye level so she could see me. I put my business card in my hand so I would look extra official, bent over at the waist, screaming at the top of my lungs and waving my official card around. All of this was a solid, unexaggerated 2+ minutes of brilliance.
I finally catch her eye and she screams at the top of her lungs. I scream "I'm a realtor". She screams (in a very muted tone) "Phone?". I scream "I called". She screamed "Liar!". I tried to calm the situation by showing her the # that I called (that should be proof). She screamed "I'm deaf". I said "What was I supposed to do?". She screamed "I'm sorry" and pointed to the door.
I looked at the door and my client was already outside and laughing at me (can't blame her).
So, Realtors, the moral of all of this is a little EXTRA info when the circumstances are EXTRAordinary is proper etiquette.
God Bless
Realtor, pa-lease! When you put a house on the market there are certain things that should be put in place in order for us to all have a good and efficient home selling/ home buying time. Certain etiquette to be adhered to. There are plenty of right ways to do things and not too manys ways to mess them up. You kind of have to try to screw someone over in order to do it. Most of the time.
Case in point. A client of mine wanted to see a particular condo at 7:30 just last night. I, a realtor who has some learnin', looked it up on the MLS to see what the proper showing instructions were. "Temporary Resident. Show with 2 hour notice. Thank you for Showing! Lockbox Y (meaning it has a lockbox)" is what the realtor wrote. That's all it said. It did not say I needed an appointment (it is customary that if an appointment is needed it is stated plainly). I called the # given around 2pm and left a message that I would bring my client at 7:30 that evening. No one called me back to say "NO", so I (as anyone else would) felt is was good to go. Easy, right?
We get to the 7:30 appointment at 7:28, I figure it's not too early and so I ring the door bell. Nothing. I ring it again and again. Still nothing. I knock on it. I see a light go on. No one comes to the door. I knock like a cop. Nothing, but I hear movement inside. I figure I've done my part and now it's time to use the lockbox key. I go to the lockbox and get the key.
I decided to knock one more time like a Gestapo agent in 40s Germany. Nothing. I take the key and open the door and immediately see an elderly lady in a room right off of the entry on a laptop. "Hi, I'm sorry..." is what I said to the ignoring lady. "Mam? Excuse me. Mam? Hello. Mam?" is what I was blathering for a full minute before I notice some sign language charts on the wall. "She's deaf" is what my investigative intuition told me. So, being as smart as I am, I decided to yell louder "Mam"? Mam? Hello. Excuse me.". Nothing.
I decided I needed to get her attention by waving my hand and bending down to her eye level so she could see me. I put my business card in my hand so I would look extra official, bent over at the waist, screaming at the top of my lungs and waving my official card around. All of this was a solid, unexaggerated 2+ minutes of brilliance.
I finally catch her eye and she screams at the top of her lungs. I scream "I'm a realtor". She screams (in a very muted tone) "Phone?". I scream "I called". She screamed "Liar!". I tried to calm the situation by showing her the # that I called (that should be proof). She screamed "I'm deaf". I said "What was I supposed to do?". She screamed "I'm sorry" and pointed to the door.
I looked at the door and my client was already outside and laughing at me (can't blame her).
So, Realtors, the moral of all of this is a little EXTRA info when the circumstances are EXTRAordinary is proper etiquette.
God Bless
Thursday, February 11, 2010
If 60% Of The People On A Boat Drowned, Is That Good?
People. Howdy.
"Median Home Prices Show Signs Of Stability" was the title of an article written in USA Today, today.
"Home prices rose in 40% of U.S. cities in the fourth quarter of last year" was in the 1st paragraph. Looks good, but are we done with home prices dropping faster then grandpa's dentures? Let's see. 40% of the cities went up, so the other 60% went down or remained the same. Still not bad. let's dig deeper.
"The national median price was $172,900, or 4.1% below the fourth quarter last year. That was the smallest year-over-year price decline in more than two years" is what the article said later. Well, not plummeting like we were, but not as zippidy-do-da as the title suggests. Further still.
January foreclosures were still up 15% from a year ago, more people will be upside down on their mortgage (eliminating them to sell their home and buy another place, regardless of prices) & we are about to have another record year in foreclosures. It will be much worse if there's not an extension for the Federal tax credit for home buyers.
The good news: Home prices are very affordable and interest rates are fantastic. People don't seem as desperate as before and unemployment actually improved recently (.3%, not much but better than a stick in the eye, unless your job is to take sticks in your eye).
Eventually, we'll be alright!
Check out the article (click on the title) and let me know how full of it I am.
God Bless.
"Median Home Prices Show Signs Of Stability" was the title of an article written in USA Today, today.
"Home prices rose in 40% of U.S. cities in the fourth quarter of last year" was in the 1st paragraph. Looks good, but are we done with home prices dropping faster then grandpa's dentures? Let's see. 40% of the cities went up, so the other 60% went down or remained the same. Still not bad. let's dig deeper.
"The national median price was $172,900, or 4.1% below the fourth quarter last year. That was the smallest year-over-year price decline in more than two years" is what the article said later. Well, not plummeting like we were, but not as zippidy-do-da as the title suggests. Further still.
January foreclosures were still up 15% from a year ago, more people will be upside down on their mortgage (eliminating them to sell their home and buy another place, regardless of prices) & we are about to have another record year in foreclosures. It will be much worse if there's not an extension for the Federal tax credit for home buyers.
The good news: Home prices are very affordable and interest rates are fantastic. People don't seem as desperate as before and unemployment actually improved recently (.3%, not much but better than a stick in the eye, unless your job is to take sticks in your eye).
Eventually, we'll be alright!
Check out the article (click on the title) and let me know how full of it I am.
God Bless.
Wednesday, February 10, 2010
One West Bank And The Dirty Word
Hello People.
This is how it went down and is going downer.....
Indymac was seized by the FDIC in July of 08 because it had a ton of bad loans out and there was a semi run on the bank. Anyway, the FDIC turned around and sold Indymac and all of it's bad loans to newly formed One West Bank. In order to get the sale done the FDIC had to sell it at 70 cents on the dollar amount of the loans. Doesn't sound too evil yet. Just hold on brother.
The side deal was that on any foreclosure or short sale loss taken by One West Bank the FDIC would reimburse One West Bank 80%. Not 80% of what One West bought it for (remember the 70 cents on the dollar?) but of the original loan amount. Did you hear me? I can't hear you screaming?
Some real disturbing #s, are you ready? It gets pretty ugly. You've been warned.
A short sale on a house is completed at a purchase price of $250,000. With fees and all of that junk, lets say that One West Bank nets $200,000. The original loan was $400,000. Leaves OWB with $200,000 and a loss of $200,000. The FDIC gives them (very nice people at FDIC) 80% of the loss, or $160,000. OWB has $360,000 in their pocket, net. Wait! They only paid $280,000 for the loan. Nice net of $80K without doing to much, eh?
Is it any wonder why loan modifications are as mythical as a unicorn or celibate NBA star?
Check out a video (click on the title) describing this and let me know if you're pissed off.
God Bless.
This is how it went down and is going downer.....
Indymac was seized by the FDIC in July of 08 because it had a ton of bad loans out and there was a semi run on the bank. Anyway, the FDIC turned around and sold Indymac and all of it's bad loans to newly formed One West Bank. In order to get the sale done the FDIC had to sell it at 70 cents on the dollar amount of the loans. Doesn't sound too evil yet. Just hold on brother.
The side deal was that on any foreclosure or short sale loss taken by One West Bank the FDIC would reimburse One West Bank 80%. Not 80% of what One West bought it for (remember the 70 cents on the dollar?) but of the original loan amount. Did you hear me? I can't hear you screaming?
Some real disturbing #s, are you ready? It gets pretty ugly. You've been warned.
A short sale on a house is completed at a purchase price of $250,000. With fees and all of that junk, lets say that One West Bank nets $200,000. The original loan was $400,000. Leaves OWB with $200,000 and a loss of $200,000. The FDIC gives them (very nice people at FDIC) 80% of the loss, or $160,000. OWB has $360,000 in their pocket, net. Wait! They only paid $280,000 for the loan. Nice net of $80K without doing to much, eh?
Is it any wonder why loan modifications are as mythical as a unicorn or celibate NBA star?
Check out a video (click on the title) describing this and let me know if you're pissed off.
God Bless.
Monday, February 8, 2010
Don't Tell Me What To Do!
Yo People.
There's a saying about how opinions are like a certain body part and how everyone has them and they all stink. A little cynical. I prefer a little more optimistic outlook on opinions. We all have them and they're all good as long as you don't bother me with yours (I said a little).
Anyway, opinions on what's a good deal in real estate vary vastly from Victor to Vivien (stupid). If you think something is a good deal you should go for it. Don't let other people tell you what a good home purchase or a good investment should look like. These are personal decisions and should be tailor made to fit you. You'll have to live with the outcome whether it be good or bad.
Now, that being said, you should get enough info to make sure your real estate purchase is exactly (or as close as exactly as possible) what you want. The price of a house is just the beginning. How much will it cost to do repairs (get estimates from licensed professionals, not from some in law you are trying to give a job to so they will get off your couch)? What type of loan do you qualify for (make sure you do the #s correctly)? What will your monthly payment be (I said do the #s correctly)? Will your spouse leave you for buying a home without a roof (she will)? These all have to be investigated in order for you to make that personal investment/ home purchase. Be very wary (stupider) of a price on a home that is too good to be true. It is.
The reason I'm bringing all of this up is because people want a deal when they buy real estate (duh) but sometimes they don't know what a deal is. If you can buy a home for $200K and it's worth $300K, sounds good. Even if you have to put in $50K for repairs it still sounds good, right? The answer: Maybe. If that $50K has to come out of your own pocket instead of being in your loan then maybe. A 20% down payment on $200K is $40K and on $300K is $60K. Do you want to come up with $90K cash and get a better purchase price, or come up with $60K cash and keep some money in your purse for college, emergencies, food? Sometimes, for some people, it's less painful to buy a house that doesn't need that much work and keep the money that would've went to repairs in their own pocket. Some people have a lot of cash laying around (call me) and would love to jump on a deal like that.
My point is everybody's different when it comes to buying a home or investment property. Some like to hold on and play/ pray for appreciation. Some want their money going into an investment that is going to make moo la right now. Some just want a place to raise their kids or to hide their mistress. It doesn't matter what you want it only matters that you know enough info to get exactly what you want.
Check out an article by CNN Money (that almost talks about the same thing) by clicking on the title.
Happy hunting and God Bless.
There's a saying about how opinions are like a certain body part and how everyone has them and they all stink. A little cynical. I prefer a little more optimistic outlook on opinions. We all have them and they're all good as long as you don't bother me with yours (I said a little).
Anyway, opinions on what's a good deal in real estate vary vastly from Victor to Vivien (stupid). If you think something is a good deal you should go for it. Don't let other people tell you what a good home purchase or a good investment should look like. These are personal decisions and should be tailor made to fit you. You'll have to live with the outcome whether it be good or bad.
Now, that being said, you should get enough info to make sure your real estate purchase is exactly (or as close as exactly as possible) what you want. The price of a house is just the beginning. How much will it cost to do repairs (get estimates from licensed professionals, not from some in law you are trying to give a job to so they will get off your couch)? What type of loan do you qualify for (make sure you do the #s correctly)? What will your monthly payment be (I said do the #s correctly)? Will your spouse leave you for buying a home without a roof (she will)? These all have to be investigated in order for you to make that personal investment/ home purchase. Be very wary (stupider) of a price on a home that is too good to be true. It is.
The reason I'm bringing all of this up is because people want a deal when they buy real estate (duh) but sometimes they don't know what a deal is. If you can buy a home for $200K and it's worth $300K, sounds good. Even if you have to put in $50K for repairs it still sounds good, right? The answer: Maybe. If that $50K has to come out of your own pocket instead of being in your loan then maybe. A 20% down payment on $200K is $40K and on $300K is $60K. Do you want to come up with $90K cash and get a better purchase price, or come up with $60K cash and keep some money in your purse for college, emergencies, food? Sometimes, for some people, it's less painful to buy a house that doesn't need that much work and keep the money that would've went to repairs in their own pocket. Some people have a lot of cash laying around (call me) and would love to jump on a deal like that.
My point is everybody's different when it comes to buying a home or investment property. Some like to hold on and play/ pray for appreciation. Some want their money going into an investment that is going to make moo la right now. Some just want a place to raise their kids or to hide their mistress. It doesn't matter what you want it only matters that you know enough info to get exactly what you want.
Check out an article by CNN Money (that almost talks about the same thing) by clicking on the title.
Happy hunting and God Bless.
Sunday, February 7, 2010
How I Rock The Mic
Hi People.
I've been the infrequent panelist on a radio show called The San Diego Money Makers (catchy).
I was on yesterday (Feb 6th) when we talked about V.A. loans and the difficulties they present, loan modifications and how they are the new "unicorn" in the real estate industry, appraisals and how that is the new "dirty" word in real estate and some other good stuff. So, give it it a listen and be kind, I'm very sensitive.
Click on the title to hear yesterday's podcast.
God Bless.
I've been the infrequent panelist on a radio show called The San Diego Money Makers (catchy).
I was on yesterday (Feb 6th) when we talked about V.A. loans and the difficulties they present, loan modifications and how they are the new "unicorn" in the real estate industry, appraisals and how that is the new "dirty" word in real estate and some other good stuff. So, give it it a listen and be kind, I'm very sensitive.
Click on the title to hear yesterday's podcast.
God Bless.
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