We just came out of a session where we heard from the CEO of REMAX, Dave Liniger.  He presented a plethora of graphs, number and figures showing us what the real estate market has done in the past year.  He made sure to state that although real estate, when looking at the sales figures from across the country has done quite poorly in the past 2-3 years, it has maintained and sales volume has increased in local areas.  We will have some more recent figures out on our market as soon as we get back from this conference but if you want to see last month’s figures be sure to visit our news letter page.   

While in the session, Dave Liniger also mentioned that there are still many homeowners out there that may be defaulting on their homes very soon.  Consumer confidence is still low which means that the unemployment rate will still be low in the coming months, if not years.   If that is you, or if you are coming to a place where you are exhausting your savings in order to maintain payments on your home, remember that there is a smooth way to relieve yourself of that mounting debt.  Remember we are here to help families get out of the situation that they are in and our services are completely free to you.  Give us a call anytime…

AVAILABLE STANDARD SALE!!!

- Highley desirable area neighborhood in Downey. 
- Very well kept and maintained. 
- Move in condition!
- Large living room with fireplace, great for entertaining
- Central air
- Large laundry room with storage
- 4th bedroom can be used as a family room or office
- Upgraded kitchen
- Back yard with shaded patio area

AVAILABLE SHORT SALE!

- Fully remodeled from the gound up!
- Tankless water heater
- 3 car garage
- Gorgeous fireplace in living room
- Hardwood floors throughout
- Surround sound speaker system throughout entire house
- Recess lighting with advanced light controls
- Kitchen with granite counters, light wood cabinetry, tile back splash
- Crown molding throughout
- Vaulted family room, with recess lighting
- Central air and heat
- Huge laundry room, with sink and storage
- Master bedroom with his and her walk in closets
- Master bath with jacuzzi tub and "His and Her sinks"
- Family room, Boston speaker surround sound system already installed
- 3 zone ac system

WASHINGTON (Reuters) - The Congress on Wednesday approved a bill
extending the closing deadline for homebuyers trying to take advantage
of a popular tax credit.
 
Homebuyers with contracts signed by April 30 who failed to go to closing
by the June 30 deadline will now have until September 30 to complete
their purchases. The House of Representatives on Tuesday approved the
bill and it now goes to President Barack Obama for his signature.
 
The $8,000 tax credit for first time homebuyers and $6,500 credit for
others purchasing a new primary residence was a highly popular temporary
measure by the Obama administration to jump start home sales during the
economic recession.
 
Real estate agents said thousands of homebuyers would miss the June 30
deadline because banks and settlement offices were struggling to deal
with the volume of people rushing to close on their deals.
 
"In addition to helping thousands of families experience the American
dream, this successful and popular program provides a much needed boost
to Nevada's housing market and economy," Senate Majority Leader Harry
Reid said in a statement.
 
Reid, a Democrat, faces a tough re-election fight in Nevada, where the
U.S. foreclosure crisis is most pronounced.
 
The Senate acted separately on the tax credit extension after another
bill that included both the homebuyers measure and an extension of
jobless benefits for the long-term unemployed was blocked by
Republicans.
 
The jobless aid bill fell one vote short of the 60 needed to overcome
procedural hurdles in the 100-member Senate. Republicans objected to the
$34 billion cost of the bill.
 
The Democratic-backed bill would have extended the federal jobless aid
program through November. Senate Republican Leader Mitch McConnell
offered a two month extension that was paid for by using unspent money
from last year's economic stimulus program and Democrats objected.
 
Reid said he would try again to pass the jobless aid bill after the
Senate returns from the July 4 holiday recess.
 
(Reporting by Donna Smith; editing by Anthony Boadle)

AVAILABLE!  SHORT SALE!

- This town home has been highly upgraded!!!
- Gorgeous dark wood flooring throughout entire house
- Ocean views from almost every area of the home.
- Open floor plan perfect for entertaining
- Island kitchen with granite counters, white cabinetry, window shutters, wine cooler, recess lighting
- Crown molding throughout entire house, including bathrooms, and hallways
- Dining area with ocean views
- Walk in closet in master bedroom
- This is a must see!

A visusal perspective of 2008-2010

BACK UP OFFERS ONLY!!!  STANDARD SALE!!!

- This home is located in one of the most desirable areas of Downey.
- Easy access to the 5 FWY
- HUGE 11,125 SqFt. lot with a pool perfect for those hot days and entertaining guests.
- Property is orientated for maximum privacy
- 2nd story deck overlooking pool and entire back yard
- Living room flows into a large den
- Attic has been modified to be used as a loft, office or extra storage.

Owner Occupied  FHA
3.5% down  Purchase, Condo, SFR, up to 4 Units,

620 Minimum Fico

Owner Occupied  VA
0% down Purchase, Condo, SFR, up to 4 Units,

620 Minimum Fico

Owner Occupied  Conventional with MI 

5% down  Purchase only SFR

Up to $417,000

680 Minimum Fico

Owner Occupied  Conventional NO MI  

1 – 2 units 20% down 

3- 4 units 25% down

620 Minimum Fico

2nd Homes

10% down Purchase SFR - No Condos or Attached Housing

Up to $417,000
680 Minimum Fico
Property Must Be Located In Resort or Vacation Area

Agency Jumbos Up to $729,750  
10% down Owner Occupied, Purchase, Condo, SFR,
740 Minimum Fico

Investment Property Conventional

1 unit  20% down

2 to 4 units 25% down

SFR ,Condos, up to 4 Units

620 Minimum Fico

Give us a call if you would like to get pre-approved!

Beautiful adobe style 3 Bed 1 Bath home Over 1,520 Sq Ft. of living space Over 5.895 SqFt. Lot Brand new windows with new blinds Central Air Conditioner Large family room great for entertaining. Owner has invested over $90,000 in upgrades New tile throughout kitchen and family room Open floor plan with large living room, fireplace, and newly refinished hard-wood floors. Low maintenance backyard Detached 2 car garage Much more!!!  

AVAILABLE SHORT SALE!

- This is the best first time buyer opportunity out there.
- Family neighborhood.
- Quick access to Whittier Blvd, stores, & restaurants
- Easy access to 605 fwy.
- Walking distance to Palm Park which offers tennis courts, swimming pools, childrens after school programs and many other community based programs. 

AVAILABLE STANDARD SALE!!!

- 3 Bed 2 Bath - Buyer to verify permits
- Permitted game room currently being used as a work out room
- Beautiful Dark Hard wood floors throughout
- Upgraded Bathrooms
- Great family oriented neighborhood
- Recess lighting, newer paint throughout, gorgeous crown molding and baseboads

- Perfect condo for someone wanting to get started in home ownership. 
- OC living at it's finest!
- Easy access to 5 fwy and close to Irvine Spectrum
- Kitchen with lots of counter space
- Earth tones throughout
- Beautiful laminate flooring throughout
- Gorgeous community
- Walking  distance to Rimgate Park

It is a program that will help a lot of family's and two of the great benefits of this program is that, 1. It helps families with money for relocating if you are short selling your home, and 2.  Once you sell your home utilizing the HAFA program, the lending bank may NOT pursue the seller with a deficiency judgement.

READ ON...

What is HAFA?
HAFA directs lenders to assist eligible homeowners in quickly and effectively implementing short sales or deeds-in-lieu by providing financial incentives to lenders that carry out foreclosure alternatives through the program's guidelines.  The program was introduced in part with the intent to remove the stigma from short sales and help keep communities from being destroyed through massive foreclosures. HAFA in its current state is only applicable to conventional-type, non-Governmental Serviced Enterprises (non-GSE) mortgages and therefore does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac.4 These organizations may have plans to release their own versions of HAFA.

Who is eligable for HAFA?
Most homeowners facing financial hardship are eligible. As a rule, if a homeowner is eligible for HAMP but cannot pay the mortgage, then he or she is eligible for an assisted short sale through HAFA. However, loans owned or guaranteed by Fannie Mae or Freddie Mac do not qualify. Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days if the borrower has met one or more of the following criteria1:

• Does not qualify for a HAMP Trial Period Plan
• Does not successfully complete a HAMP Trial Period Plan
• Is delinquent on a HAMP modification by missing at least two consecutive payments
• Requests a short sale or deed-in-lieu2

For a loan to qualify, it must meet the following criteria:

• The property is the borrower's principal residence
• The mortgage loan is a first lien mortgage originated on or before January 1, 2009
• The mortgage is delinquent or default is reasonably foreseeable
• The current unpaid principal balance is equal to or less than $729,750
• The borrower's total monthly mortgage payment exceeds 31 percent of the borrower's gross income (as defined in HAMP Supplemental Directive 09-013)
• The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac

Details of HAFA
HAFA was introduced to simplify and streamline the short sale process. HAFA accomplishes this in the following ways:

• Compliments HAMP by providing viable alternatives for borrowers who are HAMP-eligible
• Uses standard processes, documents and timeframes
• Provides financial incentives to borrowers, servicers and investors
• Requires that borrowers be fully released from future liability for the debt
• Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis
• Allows the borrower to receive pre-approved short sale terms prior to the property listing
• Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement1

HAFA provides financial incentives as follows:

• Homeowners qualify for $3,000 (updated March 26, 2010; was previously $1,500) in Borrower Relocation Assistance after a short sale or deed-in-lieu has been completed (may classify as taxable income in some cases2)
• Financial incentives for servicers participating in the program include up to $1,500 (updated March 26, 2010; was previously $1,000) servicing bonus upon completion of a short sale or deed-in-lieu
• Financial incentives for investors include up to $2,000 (updated March 26, 2010; was previously $1,000) for those who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders. This reimbursement will be earned on a one-for-three matching basis3
• Lenders pay all servicing fees — homeowners have no out-of-pocket expenses4

How to apply for HAFA?
Homeowners interested in utilizing foreclosure alternatives under HAFA are instructed to contact their lender if they meet the eligibility requirements and inform them of their desire to participate. Homeowners unsure of whether or not they meet eligibility requirements should contact us directly at 562-883-1003

From DSNEWS.com by Brittany Dunn

On Thursday, California Gov. Arnold Schwarzenegger signed AB 183, which will provide a tax credit of up to $10,000 to Californians who are buying their first home or purchasing a newly-built home.

“I have been up and down the state pushing this important housing bill that will get people off the fence and into homes while creating jobs and stimulating our economy – and today I am proud to take action and put it into law,” Gov. Schwarzenegger said.

The bill, authored by assembly member Anna Caballero (D-Salinas) and Sen. Roy Ashbum (R-Bakersfield), gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers—$100 million for first-time buyers of existing homes and another $100 million for buyers of new, unoccupied homes.

In the second quarter of 2010, we will have 3 major factors working against the housing market at the same time.  They are; climbing interest rates, expiring tax credits and worsening lending guidelines.  What I’m going to outline for you now is how this will impact us and why it is so urgent for your sellers and prospective seller to act NOW.

1.)    Rates: Interest rates have been at their historic low point (5%-5.5%) for so long now, most people have forgotten that the average 30 year rate is somewhere between 7% and 7.5%.  On March 30^th the Federal Reserve will cease buying all the low rate mortgage bonds.  This means buyer will qualify for less house since interest rates will likely be around 6%-6.5% by June and probably in the 6.5%-7% range by the end of the year.  This is the optimistic forecast.  If inflation shows up we’ll see rates spike sooner.

2.)    Tax credits expire: Buyers will no longer be provided incentives by the government to purchase houses.  You probably have some decent statistics about what % of sales over 100K are 1^st time or move up homebuyers.  This will put a significant dent in demand

3.)    Worsening lending guidelines: Buyers will qualify for less house because lending guidelines continue to become more restrictive.  The pendulum is not done swinging.  We can currently qualify buyers at 50% of their gross income.  This will fall to 41%-45% by mid year and we are unlikely to see any improvement until we’ve had a few years where loans stop defaulting.  Also, the minimum credit score required to purchase FHA is about to move from 620 to 640.

Looking at those three factors we can see less demand, tougher qualifying through higher rates, and tougher qualifying through lower debt standards.  These three combined will put another layer of significant pricing pressure on housing over and above some of the REO pressure that exists already.

Here is a tangible example of what we’re talking about:

Today Sally Seller sells her 200K home to Billy Buyer.  Billy gets a 200K loan at 5.5% and qualifies for the $1135 payment…everyone is happy.  Months from now Sally Seller tries to sell her home to Billy Buyer for 200K but the market is at 6.5%.  Billy can't qualify for the extra $130 per month.  For Billy to qualify for that $1135 payment when rates are 6.5%, Sally has to sell her 200K house for 180K.

This is JUST due to interest rate pressure, we’re not even considering Billy’s debt ratio or the fact that because the tax incentives are long gone, there will be fewer of Billy.

Sellers must understand the consequences of waiting in this market.  Many sellers believe waiting means give it a year and the REO market will be out of the way and we'll be fine.  The reality is as interest rates climb on a 200K house they will lose 20K in sales price for every 1% increase to rates.  We're at 5%-5.25% now and we're headed into the 7%-7.5% range.  You can do the math quickly.

Sellers must take advantage of this opportunity to sell NOW.  Some people will feel they don’t want to "give away" their house but the reality is they can cash out for significantly more value in the first half of this year, especially in the first quarter, than they will in the next 2-3 years.  

As always, if there is anything you need we are here to serve you. 

The person who was to become St. Patrick, the patron saint of Ireland, was born in Wales about AD 385. His given name was Maewyn, and he almost didn't get the job of bishop of Ireland because he lacked the required scholarship.

Far from being a saint, until he was 16, he considered himself a pagan. At that age, he was sold into slavery by a group of Irish marauders that raided his village. During his captivity, he became closer to God.

He escaped from slavery after six years and went to Gaul where he studied in the monastery under St. Germain, bishop of Auxerre for a period of twelve years. During his training he became aware that his calling was to convert the pagans to Christianity.

His wishes were to return to Ireland, to convert the native pagans to Christianity. But his superiors instead appointed St. Palladius. But two years later, Palladius transferred to Scotland. Patrick, having adopted that Christian name earlier, was then appointed as second bishop to Ireland.

Patrick was quite successful at winning converts. And this fact upset the Celtic Druids. Patrick was arrested several times, but escaped each time. He traveled throughout Ireland, establishing monasteries across the country. He also set up schools and churches which would aid him in his conversion of the Irish country to Christianity.

His mission in Ireland lasted for thirty years. After that time, Patrick retired to County Down. He died on March 17 in AD 461. That day has been commemorated as St. Patrick's Day ever since.

Much Irish folklore surrounds St. Patrick's Day. Not much of it is actually substantiated.

Some of this lore includes the belief that Patrick raised people from the dead. He also is said to have given a sermon from a hilltop that drove all the snakes from Ireland. Of course, no snakes were ever native to Ireland, and some people think this is a metaphor for the conversion of the pagans. Though originally a Catholic holy day, St. Patrick's Day has evolved into more of a secular holiday.

One traditional icon of the day is the shamrock. And this stems from a more bona fide Irish tale that tells how Patrick used the three-leafed shamrock to explain the Trinity. He used it in his sermons to represent how the Father, the Son, and the Holy Spirit could all exist as separate elements of the same entity. His followers adopted the custom of wearing a shamrock on his feast day.

The St. Patrick's Day custom came to America in 1737. That was the first year St. Patrick's Day was publicly celebrated in this country, in Boston.

Today, people celebrate the day with parades, wearing of the green, and drinking beer. One reason St. Patrick's Day might have become so popular is that it takes place just a few days before the first day of spring. One might say it has become the first green of spring.

The days are long gone for the short, smooth real estate transaction that we used to so often have 5 years ago.  We are in a much different market today.  We thought that we'd talk a little about some of the challenges we are facing being that there are so many changes currently taking place with lending institutions. 

As you have probably heard all over the media, it is much more difficult to qualify to buy a home than it was a few years back.  Banks have made their guidelines much tighter not only when it comes to the financials of a potential buyer, but also when it comes to property condition.  In the past whenever there were issues with property condition, the obvious party to take care of it was the seller.  Why you ask?  Well, the seller had an abundance of equity.  Sellers would take home anywhere from $50,000 to $200,000 when they sold their homes.  Handling repairs on their home to satisfy the buyer was no problem and made every one’s life a lot easier.   The times have changed…

You may ask, ‘who is paying for all the repairs that are required by the borrower’s lender now that the seller has no equity and is having to short sale their home?’  For all you buyers out there reading this, I hate to tell you but unfortunately it is you that will need to be prepared to make repairs on the property should your lending bank require it, and should you want to move forward with the purchase. 

In our market area which includes the cities of Downey, Norwalk, Pico Rivera, Lakewood, Bellflower, and surrounding areas, most homes are at least 40 years old.  There is no question that certain things on the property need to be repaired or replaced.  We are finding that issues can always come up, and lending banks are not willing to move forward in lending money unless certain repairs are made.   For the most part the typical repairs needed in order for banks to lend money are cosmetic things such as exterior paint.  But everything in the home, especially the 50 year old floor heater that hasn’t been used in at least 20 years need to be in working condition before a bank will release money. 

Now the question is, where is the money going to come from to pay for that?  The seller, the majority of the time obviously cannot pay for it because they are financially unstable; hence they are “short selling” the property.  The real estate agent cannot afford to pay it because the commission they will be earning isn’t anywhere near what it once was.  Real estate agents are earning approximately 50% less in commissions then they were over 4 years ago and they still have to deal with the same expenses they had 4 years ago.  In addition, banks are not willing to pay the standard 6% commission that a real estate agent is used to earning.  That leaves only the buyer to pay for the repairs required.

Regardless of the fact that a buyer will be spending money to repair certain things the lender is requiring, homes are selling for 50% less (in some areas) than they were 3 years ago.  So all in all, it is still a HUGE benefit to buy in this market. 

Inventory is still low in the South East Los Angeles area.  Ninety percent of the homes that you see on real estate search engines available to the public have multiple offers on them already.  We will talk more about this is a future blog post but for now, if you know of anyone that needs help selling their home, or is interested in buying a home  please don’t wait to contact us. 

Back up offers only!

4 – Units!

-Great investment opportunity
-3 of the units are 2 Bed 1 Bath
-1 of the units is 3 Bed 1 Bath
-Over $6,500 of income between all 4 units
-New roof on 3 Bed 1 Bath unit.
-Located in a great area of Downey
-Just minutes from Stores, restaurants, and shopping at Downey Landing
-3 Units with 1 car garage