There is so much information flying in every direction and at times it seems that it’s all fluff.  If you are getting discouraged with what’s taking place with the value of your home, and you are thinking about throwing in the towel and just getting rid of your home because you owe more than double the amount of what it’s worth in today’s market there is hope for you.  The government released a program that will help many of you who aren’t necessarily struggling financially, but are looking to get out of a home you are paying what too much in payments on. 

The program is called the HARP program and it’s a program that helps home owners who are still current on their home loan refinance with today’s amazingly low interest rates.  It’s not a new program.  It has been around for a little more than a year now but it has been dramatically enhanced.  In the past a homeowner would only be able to refinance if they had a total Loan to Value of 125%.  In other words, if they owed more than 125% of what the home was really worth, they automatically were declined for the HARP program.  Now the Federal Housing Finance Agency has changed the program so that it doesn’t matter how much you owe on the property compared to its current value.  Even if you owe more than double what the house is currently valued at you can still potentially qualify for a refinance. 

We have connections to this type of refinance so please give us a call if you are interested in learning more about it.  Our contact info is at the top of the screen.   

This month was “Community Helpers Month” at Kids Zone pre-school in Santa Fe Springs, CA and today I had the wonderful opportunity to speak about real estate to a group of 3 year old pre-school children.  Believe it or not, I was extremely nervous!  I’ve given real estate presentations to groups of over 50 adults, some of which were top ranking real estate experts from various parts of the U.S. But for some reason giving a presentation to a group of 3 year olds made me sweat.   I can’t say that it wasn’t worth it…The experience brought a HUGE smile to my face and the kids were extremely responsive.  With every question asked to them, came a beautiful smile and lively answer.   

We created a coloring book page out of one our property flyers and changed it up a little so that it said “HOME” really big on the front.  The Crayola website that we used converted the Downey home that we have listed into the perfect coloring page (Shown Above).  We love serving our community any way we can and I hope that I get the opportunity to share about how we help people make big decisions with their most valuable asset in the future! 

With fall fast upon us, the weather is changing. The air is getting cooler and sun rays are being replaced with rain clouds! This change in pace can leave you wondering, "What are we going to do?" Lucky for you Downey offers many options that'll keep you entertained, warm, and dry!

Bang! Zoom! Straight to the moon! Columbia Memorial Space Center can take you out of this world for a low adult ticket price of $5! Offering educational and hands on activities based in robotics, flight and space! www.columbiaspacescience.org

For some good time fun that never gets old, check out Del Rio Lanes.  Del Rio Lanes offers everything from snacks to music.  Thursday nights you can go in and see a live band play, show up on a Friday or Saturday night you can participate in Cosmic Bowling. There are activities here for all ages to enjoy! www.delriolanes.com

Dining, shopping, activities! Oh my!  Stonewood Center can be a great spot to get out of the cold and maybe purchase a few sweaters! Boasting over 150 retailers and restraunts, you can stay occupied for hours. Stonewood Center also has an extensive event calendar, be sure to check it and see what special events are going on! www.shopstonewoodcenter.com

You may be trading swimsuits for scarves, but good times can stay with you all year around.  Living in a thriving city allows you to flourish and have fun. The activities are out there for you to participate in, just find them and enjoy!

A community is only what the people of the neighborhood make it. By taking an active role in what our community has to offer and by just getting out of the house and meeting our neighbors, we can build safer neighborhoods and create a real sense of extended family.

Downey is a great city to live in because they offer so many events, classes, and opportunities for it's residents! There is literally an activity everyday of the week!

Every Saturday, right in the heart of downtown Downey from 9am to 1pm, you can visit the Farmers Market.  The Farmers Market is not just a place to purchase produce, you may pick up such delights as gourmet breads and cheeses, specialty oils and fresh flowers.

The second Thursday of every month at the Downey City Library, you can join the Book Lovers Club: Booked For Lunch.  Bring a sack lunch and join other adults in light refreshments and some exciting discussions about the book of the month.

 From September 29- October 16 the Downey Civic Center will be presenting, Singin' In The Rain. The performance is offered by Downey Civic Light Opera Association, and is part of the annual series of Broadway musicals.

This is just a small preview of what the city has to offer. A great resource to you in finding events is www.downeyca.org, they list everything from classes to mixers, to clubs, to big events! You chose to move to your particular city for a reason, now it's important to maintain that relationship.  If no one participated, there would be no community!

Many homeowners who have attempted to do mondifications on their home have told us that when the bank notified them that their loan modification was rejected they were advised by the bank that they have 2 options.  We'll try to clarify those 2 options here. 

When your home enters default it can be a very confusing and scary time. The two options that banks are giving are:  A Deed in Lieu or a Short Sale. Knowing which decision to make can be a difficult one if you don't have the proper knowledge to move forward.

With a Deed in Leiu when you sign over the deed, the property now belongs to the bank, you will need to vacate as soon as possible.  If you do a Short Sale, you can stay in your home while the house is on the market and through out the escrow process.

A Deed in Leiu is basically a voluntary forclosure and unfortunately can reflect as a forclosure on your credit report. A Short Sale will show on your credit report that the debt with your bank has been satisfied, leaving you with the possibility of being able to buy again in as soon as 2 years!

If you have multiple mortgages or liens on your home, the Deed in Lieu may not even be offered as a viable option. With an experienced short sale negotiator, those banks and liens can be worked out and everyone can be taken care of with a Short Sale.

Dealing with these decisions can be a lot for a person or a family, that's why are family is here to assist you and answer any question you may have. It always pays to be informed and we are here to guide you and walk along side you on this journey.  Reach us at 877-883-1003 or 888-746-3811. 

Here is a clear reason why we cannot always assume that the information provided on your local news channel applies to you.  What your local or cable news network doesn't understand is that real estate performs differently depending on the area.  This morning I was watching my local news channel and they mentioned that real estate values in Los Angeles County dropped again for the month of July over 4%.  I wanted to verify this for myself but more specifically, I wanted to see if this was the case in my market area of Downey and the surrounding area. 

After doing my own research, looking at data from SoCal MLS reports I came to the conclusion that values did go down for the month of July when comparing home values from the previous month of June, however they did not go down anywhere near the amount that my local news station mentioned...

According to data directly from SoCal MLS reports, the average sales price in Downey and the surrounding area for the month of July was $306,701.  The average sales price of homes for the month of June was $308,768.  That is only a difference of about $2,000 which translates to a loss of approximately 0.67% if I round up.  That number is nowhere near the figure that I heard on the local news channel this morning.  

 All in all, we're not saying that the data they presented isn't accurate. What we are saying is that if you want to know how real estate values are doing in your area, you need to turn to your local real estate expert for answers.  So we are always here ready to serve you should you ever need assistance with buying or selling your home....

 

By Chris Gonzales

Oh how I miss San Diego!  I spent 4 years going to school at one of the most beautiful campuses known to man, well at least in my opinion, the University of California San Diego.  This month I was able to reminisce on the times I had enjoying the sunny skies, gorgeous temps, and not to mention studying to be a doctor, well maybe not the last one.  As always, we are big on continuing education so we attend the Star Power Systems Real Estate Conference every year to gain more knowledge on how to better serve our clients.   The beauty of this conference is that the classes are actually taught by top producing real estate agents from other market areas.  They freely share their marketing strategies, and systems that they have in place.  Ultimately everything that we learn is used to be able to deliver the best client experience that we can possibly offer. 

We’re going to be implementing a new marketing technique that will hopefully offer an enhanced service to all of our sellers.  Statistics show that when a new homeowner moves into an area, it’s a result of activity that has taken place in that same neighborhood.  That type of activity includes, open houses, a recommendation from a neighbor to a friend or family memeber, flyer distribution, etc.  We are going to implement a new campaign where we deliver 1,000 top quality flyers to promote the listing that we are trying to sell.  We believe this will spark a buzz in the community where our listing is located and that will in turn help us to sell our home faster and more effectively, making our sellers and clients happy.  Keep your eyes peeled for our flyers in your community.  The first area we are going to hit is the city of Downey.  So if you live in Downey I’m sure you will see our marketing pieces. 

There’s great news for real estate this month in Downey and the surrounding area!  To be honest we were getting a little nervous when we saw that for 2 months in a row (March & April, 2011) home values were at approximately $301,000, the lowest since we’ve been tracking home values.  We were unsure of the direction that home values were going to take this summer.  We didn’t know if values would continue to decline, going below $300,000 or not.  Home values actually went up slightly for the months of May and June.  According to MLS reports, May had an average sales price of $306,831, and June had an average sales price of $308,768.  The market is still holding strong as you can see by the graph.

There’s also great news concerning interest rates.  According to bank rate.com interest rates for a 30 year fixed conventional loan are at 4.5% compared to 5.02% back in February.  We highly suggest that if you are interested in buying that you act now!  Don’t wait for interest rates to go up, and definitely don’t wait for prices to increase.       

We have some great information for those concerned about being able to buy a home after selling their home in a short sale.  There have been some sellers that give up hope and just decide to let the bank foreclose on their home.  Most of these sellers are simply misinformed or not informed at all.  We’re here to tell you that a short sale is definitely the way to go if you are in financial hard ship and are struggling to make the payments on your home.  WE ARE HERE TO HELP YOU!!!  Above you will see the good news.  We have obtained the information above from the Distressed Property Institute of which we are members and it displays how much time a person must wait in order to be able to qualify to purchase another home if they have sold their current home in a Short Sale.  Keep in mind that every situation is different therefore this is more of a general estimation rather then set in stone.  What we can say for certainty is that the wait to purchase a home if you sell your home in a short sale over a foreclosure is much shorter.  Another thing to note is that the figures above are assuming that the homeowner in distress has only been delinquent on their home loan and no other accounts, credit cards, or loans that they may have. 

One of the benefits of choosing Maria Palacios and Chris Gonzales with “The Mother and Son Team” is the benefit of service after you’ve completed a short sale.  When homeowners choose us to help them with their short sale, we help the homeowner reestablish their credit so that they can buy within the time limits stated above.  The benefits of home ownership are too great to pass up.  No one wants to go back to paying rent so we want to give all of our sellers in Downey and the surrounding area the ability to buy again as soon as they can.

We are so excited to introduce the new look of 2 of our billboards located in Norwalk and Downey!  We have had the previous design up now for over 2 years and we thought that this was the perfect time to create a new look.  What makes this billboard design particularly different is that we are introducing our new Mother & Son Team logo in the background, just to the left of our photo.  We are in this business day in and day out and we don't plan on going anywhere anytime soon, so we thought what better way to show our commitment to our community, our clients and our business than to brand ourselves with logo. 

Since we are a family run business we thought the best way to display our commitment was to create a type of family crest design that suits our business of selling homes.  For centuries, families have created Crests with different emblems and symbols that represent them, so we designed a logo that is a family crest with some features that represent the business that our family is in!  You can see both billboards on Firestone Blvd which has a tremendous amount of historical significance in Downey and surrounding areas.  One of the billboards is located at the Old River School Rd & Firestone Blvd intersection and the other is located at the intersection of Orr & Day Rd & Firestone Blvd just one block away from Imperial Hwy in Norwalk. 

We love this time of year because we love GREEK Food, and what better place to get your hands on some Greek Food than at the annual Downey Greek Festival.  This is the perfect event to enjoy a beautiful day learning about the Greek  Hellenic heritage, faith, culture and cuisine.  Walk around the Festival area on June 4th & 5^th and plan your gastronomical excursion into Greek Festival cuisine.  You can enjoy their Greek Dinner booth and order a plate of their highly praised lamb. The LAMB they serve is cooked slowly on spits over hot fire coals for up to six hours. Try a piece of their homemade PASTITSIO or MOUSAKA. While you're there tell them to add a couple of DOLMADAKIA to your plate (grape leaves stuffed with rice and ground beef). 

No Greek Festival would be complete without a mouth watering GYRO with garlic cucumber sauce onions and tomatoes. Move on and add some GREEK FRIES with FETA cheese and special Greek spices. They are delicious. You can top off the meal with a couple of sticks of SOUVLAKIA.  My mouth is watering as I write this blog post!  ;)

This is a must attend event and it’s only here once a year folks so don’t miss it!!!  Not only will they have food, but they’ll have entertainment and a designated Kid Zone for children to enjoy and be entertained. 

JUNE 4^th & 5^th, 2011
11am – 10 pm
10830 Downey Ave
Downey, Ca 90241

We had so much fun at this years Downey Street Fair.  We had the opportunity to meet a lot of people that were looking for some real estate advice and we were able to give a few tips to people that were currently undergoing loan modifications on their homes.  The Downey street fair was the perfect, relaxed environment to really build relationships not only with the attendees, but also the street vendors who were lots of fun.   We look forward to next year and we hope that you can come out and say hi. 

As always, if you or anyone that you know have any questions regarding your home we are hear to help.  We always make ourselves available to our loyal clientele. 

Come out with your friends and family to the Downey Street fair on Saturday May 7th.  It's going to be a lot of fun and the weather is going to be perfect!  There's going to be TON'S of food, drinks, music, and plenty to do.  We're going to have a booth there and we'll have a couple of raffles and give aways so please stop by our table and say hi!  The street fair goes from 9am - 5pm and is located right next to Downey High school on Brookshire Ave and Firestone Blvd.  Hope to see you there!!!

We are already through the 1^st quarter of 2011 and we have the official low down of what real estate has done thus far into the year.  Values have declined further and it will be interesting to see what takes place in the coming months.  As you can see from the graph below we have been tracking the average sales prices for almost 3 years now and by next month we will have a complete 3 years of data showing the average sales price for every month since April of 2008. 

The figures for March are now in showing the average sales price in Downey and the surrounding area to be $301,783.  That is a drop of approximately 3.5% from the previous month with an average price of $312,609, and we are now officially at the lowest point in home values since April of 2008.  Simple economics tells us that when there is a great supply of product the price/value of that product goes down because there is an overabundance.  This may certainly be the case and reason for values being lower over previous months.  There were 849 homes sold in March, 589 in February, and only 655 homes sold in January. 

Overall it is a great time to buy.  We are working with buyers that end up having an equal or lower payment on their mortgage then when they were renting.  Values are so low now that it so much more affordable than in the past.  Rates are still amazingly low with the average 30 year fixed rate at 4.79% in California…Give us a call or send us a message through our website.           

You may be asking, as so many have already asked us, “If I do a short sale on my home, when is the soonest that I can purchase a home again.”  Ninety percent of the sales that we are doing today have been short sales in the Downey and surrounding area and each of those home owners have asked us when they will be able to buy a home again.  Of course there are so many factors that come in to play when giving someone an answer to that question but we did a little research as far as lending guidelines are concerned and we’ll shed a little light on that. 

First off, we need to remember that when a homeowner is doing a short sale on their home, they’ve hired a real estate agent to begin the marketing process on their home, but the homeowner is in financial hardship and therefore may not be making the payment on their home.  If the homeowner is not making the payment on their home, it is affecting their credit.  The bank does not dismiss those missed payments.  This is why it is crucial to begin the short sale process if you know that you are in such a hardship that the bank will not allow you to remain with the property.  Some sellers that we speak with want to stay in the property so badly and unfortunately are so desperate that they are trying to remain in the property even though the bank has told them that they will not allow them a modification on their loan.  When a seller continues the waiting process, and they are still waiting to sell their home, their credit is getting worse and worse as the months pass. 

Now to answer the question of when you can buy a home if you do a short sale…  FHA guidelines state that a person cannot buy a home until 3 years from the date of the short sale of their home.  You may be asking, “Why should I consider a short sale if that’s the case?”  Well, you can buy much sooner if you do a short sale then if you have a foreclosure on your record.  The Foreclosure will stay on a person’s record for at least 7-10 years.  It’s going to be very difficult for a person to buy a home and get appealing interest rates and loan terms when a foreclosure is showing on their record. 

No matter which way you spin it, a short sale is the best option for a homeowner and the sooner a person realizes that they are unable to afford their home any longer, the better it is for them to begin the short sale process so that there is less damage to their credit, and their recovery is much sooner.

If you or anyone that you know is in financial hardship and you foresee a time coming where your savings is going to be drained maintaining the payments on your home, definitely give us a call so we can help and guide you through the best option for you and your family. 

We now have the first two months of data showing us how real estate has performed thus far in 2011.  As has been the case, at least for the past 2 years, property values decline in December and then rebound in the following months of January and February.  Overall home values are lower now than they have been for the majority of 2010 but if we look at the big picture, real estate has not taken a drastic turn for the worst as was the case in the later part of 2008. 

The average sales price for January was $311,775 and for February the average sales price was $312,609.  If you are in the market to buy right now, we urge you not to wait too much longer.  30 Yr Fixed interest rates are currently at 4.85% which is low compared to what rates were a few years ago.  In the last 3 months alone rates have already increased almost 14% higher than where they were in November of 2010.  There’s always talk of rates going up again and as you can already see from the graph above showing the past 6 months of interest rates across California, rates have definitely gone up.  So please don’t wait any longer.  Take advantage of this great buyers market.  Take a look at our listings here www.Mother-SonTeam.com/Properties...

Remember the show MTV Cribs?  Well, we thought it would be fun if we made made our own "Cribs" style video of our listing on 8040 Cheyenne Ave in Downey. Chris Gonzales takes you through a fully upgraded Downey home in pure "Cribs" fashion. The home is only 2 Bed 1 Bath, but this video makes the home look like a mansion...It was a ton of fun to make!!!!

We actually already sold this home, but we plan on doing more videos like this because it really will help our listings stand out from among the competition.  Just another reason to sell your home with the Mother And Son Team when you are ready to sell.  Enoy!

As we all well know, there are many Military Veterans that are coming back from serving our great country, and we wanted to make sure that they are all aware of the great benefit that they have as far as financing when it comes to buying a home.  We have already helped many US Military Veterans buy their home using VA financing and we are convinced that if you are a Veteran, it is the absolute way to go!  We've completed VA transactions recently in Lakewood, Maywood, Bellflower, and Downey in the past 4 months and we know that every Veteran must take advantage of the VA program if they are looking to buy a home in the near future.  Currently the VA Loan is the only loan program that will allow a buyer to buy with 0% Down Payment!  Below is a list of Questions and Answers to see if the VA program is something that you qualify for.  Please give us a call if you are a Veteran and you are interested in buying a home.  We are well acquainted with the entire process and we can be of great assistance to you...

Eligibility Frequently Asked Questions:

Questions about who is eligible for a VA loan and reuse of eligibility for another VA loan.

Q: How do I apply for a VA guaranteed loan?

A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.

Q: How do I get a Certificate of Eligibility?

A: Complete a VA Form 26-1880,  Request for a Certificate of Eligibility: You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility For Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it's best to provide such evidence.

Q: Can my lender get my Certificate of Eligibility for me?

A: Yes, it's called Web LGY. Most lenders have access to the Web LGY system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY - only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate. 

Q: What is acceptable proof of military service?

A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and providesyour date of entry on your current active duty period and the duration of any time lost.

If you were discharged from regular active duty after January 1, 1950, a copy of DD Form 214, Certificate of Release or Discharge From Active Duty should be included with your VA Form 26-1880. If you were discharged after October 1, 1979, DD Form 214 copy 4 should be included. A PHOTOCOPY OF DD214 WILL SUFFICE.....DO NOT SUBMIT AN ORIGINAL DOCUMENT.

If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which shows your date of entry on your current active duty period and the duration of any time lost.

If you were discharged from the Selected Reserves or the National Guard, you must include copies of adequate documentation of at least 6 years of honorable service. If you were discharged from the Army or Air Force National Guard, you may submit NGB Form 22, Report of Separation and Record of Service, or NGB Form 23, Retirement Points Accounting, or it’s equivalent. If you were discharged from the Selected Reserve, you may submit a copy of your latest annual points statement and evidence of honorable service. Unfortunately, there is no single form used by the Reserves or National Guard similar to the DD Form 214. It is your responsibility to furnish adequate documentation of at least 6 years of honorable service.

If you are still serving in the Selected Reserves or the National Guard, you must include an original statement of service signed by, or by the direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing the length of time that you have been a member of the Selected Reserves. Again, at least 6 years of honorable service must be documented.

Q: How can I obtain proof of military service?

A: Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA. Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.

Q: I have already obtained one VA loan. Can I get another one?

A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send a completed VA Form 26-1880 to our Winston-Salem Eligibility Center. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.

Q: I sold the property I obtained with my prior VA loan on an assumption. Can I get my eligibility restored to use for a new loan?

A: In this case the veteran’s eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.

Q: My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the lender. VA said it wasn’t my fault and waived the debt. Now I need a new VA loan but I am told that my used eligibility can not be restored. Why?

Or,

Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?

A: In either case, although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.

Q: Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?

A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.

Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?

A: The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, contact our Winston-Salem Eligibility Center. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of death), may obtain a VA guaranteed interest rate reduction refinance loan. For more information, contact our Winston-Salem Eligibility Center.

[NOTE: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 16, 2003 that are received after December 15, 2004.]

Q: Are the children of a living or deceased veteran eligible for the home loan benefit?

A: No, the children of an eligible veteran are not eligible for the home loan benefit.