Cost of borrowing still well below historic norms

Mortgage rates surveyed by Freddie Mac bounced back from historic lows this week, but aren't expected to soar in the New Year.

This is an article I saw Inman News yesterday & wanted to share it with you :)

Rates on 30-year fixed-rate mortgages averaged 3.95 percent with an average 0.7 point for the week ending Dec. 29. That's up from 3.91 percent last week -- an all-time low in records dating to 1971 -- but still well below the 2011 high of 5.05 percent seen in February.

The 30-year fixed-rate loan has averaged at or below 4 percent for the past nine consecutive weeks, Freddie Mac noted in releasing the results of its Primary Mortgage Market Survey.

Rates for 15-year fixed-rate mortgages averaged 3.24 percent with an average 0.8 point. That's up from 3.21 percent last week, an all-time low in records dating to 1991, but down from the 2011 high of 4.29 percent registered in February.

For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.88 percent with an average 0.6 point. That's up from 2.85 percent last week, an all-time low in records dating to 2005, but down more than 1 percentage point from the 2011 high of 3.92 percent seen in February.

Rates on 1-year Treasury-indexed ARM loans averaged 2.78 percent with an average 0.6 point. That's up from 2.77 percent last week, an all-time low in records dating to 1984, but down from a 2011 high of 3.4 percent in February.

Freddie Mac's rate survey is based on loans offered to borrowers with good credit scores who will be making down payments of at least 20 percent. Borrowers with damaged credit or making smaller down payments can expect to pay higher rates.

Mortgage rates are largely determined by demand for mortgage-backed securities (MBS),
bonds that fund the vast majority of home loans.

The Federal Reserve helped push mortgage rates down in 2009 and 2010 by buying $1.25 trillion in MBS. Since then, the European debt crisis has helped keep mortgage rates down, as investors seek the relative safety of government-backed mortgage bonds, whose payments are guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.

In a Dec. 20 forecast, economists at Fannie Mae project that rates for fixed-rate mortgages will average 4.0 percent in 2012 and 4.3 percent in 2013, down from 4.5 percent this year and 5 percent in 2009.

The Mortgage Bankers Association predicts rates on 30-year fixed-rate loans will average 4.2 percent in 2012 before rising to 4.7 percent in 2013. The National Association of Realtors projects rates on 30-year fixed-rate loans will hold steady at 4.5 percent in 2012.

What SOLD in November, and what's FOR SALE right now, in Woodbridge, Irvine

The prices of Woodbridge homes for sale right now, range from $169,900 for a 1 bedroom attached REO condo on Echo Run, to
$1,050,000 for a 4 bedroom 2,900 square foot SFR on Whistling Isle in the Summerfield tract, listed by my office!

Presently there are only 84 Woodbridge homes currently listed for sale!

Only two homes are offered for sale in "The Landings", and these are 8 Rainstar in Landing I, and 30 Foxboro in Landing II.

Usually when one is offered for sale, it is snapped up pretty fast!

30 Foxboro is a model "C" 4 bedroom house, with over 1,000 square feet of travertine, new granite counters, new maple kitchen Cabinets, new appliances, built-in fridge, new toilets and tankless water heater.

It has a 3 car garage. Nice!

Landings homes 11 Woodflower & 25 Whispering Wind are in escrow.

16 Woodbridge home sold in November 2011, at prices from $167,500, (a 1 bedroom attached REO in the Park Vista tract), to $910,000 for 4 bedroom standard sale Single Family home on Buckthorn in the Gables.

The PRICE Is the Same, But the COST Is Less

Let's put things into perspective. When you are comparing today's real estate market to the environment in 2004 you can make dramatic headlines. When you really get down to the purchase price and making that decision on whether it's a good time to buy our friends at Keeping Current Matters have laid it out well...The PRICE Is the Same, But the COST Is Less.

There is more and more research coming out showing that it makes great financial sense to purchase a home today . Whether it be rent vs. buy ratios, income-to-price ratios or income-to-mortgage payment ratios, purchasing a home right now is a bargain compared to historic norms. Now we want to look at the COST of a home today compared to pre-peak prices.

According to the most recent S&P Case Shiller price index, residential real estate values have returned to 2003 1Q PRICEs. That, in itself, says something. However, when you factor in mortgage rates, the case for buying a home today becomes even more compelling.

In 2003, 30 year mortgage rates stood at 5.88%. Today, they are 4%. How does that impact the actual COST of a home? On a home purchased for $250,000, here is the difference in monthly cost:

That means you save $285.30 a month, $3,423.60 a year and $102,708 over the life of a 30 year mortgage! You buy the home for the same PRICE but the COST is over $100,000 less.

Bottom Line
This is why so many financial advisors are saying that this may be one of the greatest times in history to purchase a home.

What are you doing on Friday & Saturday? Swing by the Irvine Holiday Faire!

Swing by the 29th annual Holiday Faire, hosted by the Irvine Fine Arts Center.
It's on Friday, November 4, from 5-9 p.m, and also on Saturday, November 5, from 9 a.m.-4 p.m.

Over 150 talented artisans will showcase a variety of unique holiday arts and decorations. Yes, they're for sale!

Join us for family fun, and see hand-blown glass, ceramics, jewelry, folk crafts, porcelain, dolls, clothing, holiday decorations and much more!

The Faire also features live music and a selection of food and dessert, including the ever-popular handmade ceramic collector bowls filled with piping hot chili or baked potatoes with all the fixings. Hmmmm, yummy.



The Irvine Fine Arts Center is located at 14321 Yale Avenue (in Heritage Park).

Admission is a whopping $2 (OMG), and kids aged 12 and under are free.
Parking is free.

Proceeds from the Faire are put back into the arts community.

Are you over 50? See you tomorrow at S.H.A.R.E.

Are you over 50? Well come to the Senior Health and Resource Expo tomorrow, (Saturday, Oct. 22nd), from 9 a.m. to noon!

Information on a variety of services will be offered, including alternative medicine, financial management, assisted living options, mobility products, safety and personal protection, employment and volunteer opportunities, medical screenings, and more.

There'll be a lot of exhibitors including:
Greater Newport Physicians
Hoag Hospital
City of Irvine
Costco, and many more. See a list of exhibitors at THIS LINK.

There'll also be:
Hearing tests
Massage and Foot Screening
Blood Pressure tests
BMI tests
Cholesterol tests
Muscle scans, and
Balance tests.

Hoag will be providing free flu shots for participants age 50 and older. Appointments and walkup registration is available too. ............. I hope to see you there.

The Lakeview Senior Center is at 20 Lake Rd, Woodbridge, Irvine, CA 92604.

Wall Street Journal & Forbes: It’s Time to Buy A Home

Today I bring you some nudging by financial institutions that have for years, been on the forefront of industry trends. As always, thanks to my friends at Keeping Current Matters for bringing this information to us.

I believe very strongly that now is the time to buy a home. Some will say I'm just saying this to create real estate transactions and commissions. Because of that, today I'll quote what those outside the real estate profession are saying to the people who look to them for financial advice.

The Wall Street Journal

Last week, in an article entitled It’sTime to Buy That House, the WSJ told their subscribers:

“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.” In an article two weeks ago, MarketWatch.com (the on-line blog for WSJ) told their readers: “Now could be the best time in history to buy a home.”

Forbes.com

In a report to their subscribers, Capital Economics reported that:

“The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”

Why is this important? Last week, Forbes explained to their readers:

“If rents simply kept up with inflation at a 3.2% annual increase, a $1,500 rent payment would cost that renter nearly $900,000 over the next 30 years. The same $1,500 payment made to their mortgage would be only $540,000 (because the payments don’t increase with inflation).”

They went on to explain the advantages of homeownership during retirement:

“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement…

At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference not to mention the impact of NOT having to pay a mortgage. How much less would you have to save for retirement if you didn’t pay the mortgage?”

Bottom Line

When the iconic financial newspaper and the iconic financial magazine say that it now makes financial sense to purchase a house, perhaps it’s time to buy a home.

City of Irvine's 40th Anniversary Bike Ride

If you're a cyclist, you're invited to enjoy an hour-long mountain bike ride along a portion of the City's more than 40 miles of bike trails.

The free 40th Anniversary Bike Ride, put on by the City of Irvine, starts at 9 a.m. on Saturday, October 15 at the Quail Hill Trail Head, located at 34 Shady Canyon Drive, Irvine.

This is a 5 mile ride.

The route will take riders along the Shady Canyon Trail to Bommer Canyon and
back. This moderate, (with hills), bike ride will provide community members with a sense of the bike trail system as well as the City’s diverse open space.

Helmets are required and geared bikes are preferred.

No children under the age of 9, and all minors must be accompanied by an adult.

The event will be cancelled if it rains.

To register, just click here.

10th Annual Irvine Global Village Festival

The City of Irvine's Global Village Festival takes place on Saturday, October 1, from 10 a.m - 6 p.m at Bill Barber Park.


Now celebrating its 10th year, this multicultural festival features international cuisine, live entertainment, a Kids Village with crafts and activities, cultural and religious exhibits and an international marketplace.

Festival admission, parking and shuttles are free.

For more information, visit irvinefestival.org

See you there!

What Happened to Modifications?

There seems to still be a great deal of confusion to where the marketplace is headed with regard to Loan Modifications, Short Sales and Foreclosures.

Our friends at Keeping Current Matters have waded through the details and brings us the latest on...What Happened to Modifications?

There are many questions as to whether modifications would have a major impact on preventing an increase in future foreclosures. Though modifications are still being done, the onus by the government and the banks has currently shifted to two other initiatives to help the housing recovery:

1. Preventing future delinquencies (people falling behind on their payments)

2. Clearing the backlog of foreclosures already owned by the banks (REOs).

As proof of this, we just need to look at the speech by Edward J. DeMarco, the Acting Director of the Federal Housing Finance Agency (FHFA), to the American Mortgage Conference. The text of the speech was released last week.

Mr. DeMarco explains: “At the end of the Bush Administration and in the early days of the Obama Administration, attention focused on loan modifications as a way of stabilizing troubled borrowers’ monthly payments and aiding them in avoiding foreclosure. These efforts resulted in the Home Affordable Modification Program, or HAMP. For much of 2009, the key priority was developing and then implementing HAMP; in late 2009 and into 2010, the challenge became making HAMP more operationally effective and converting borrowers from trial modifications
to permanent modifications.”

DeMarco then talks about what initiatives the agency is now concentrating on:

“Current priorities are focused on issues at the two ends of the foreclosure process – at one end, we are enhancing efforts to keep current borrowers from going delinquent in the first place and at the other end, we are now focusing on the challenges of disposing of the real estate owned that is left after a foreclosure.”

My experience shows that the vast majority of loan mods do not work, and I urge people who are upside down with their mortgages to have a back-up plan.

Preventing New Delinquencies

Trying to prevent more American families from falling delinquent on their mortgage payments is a great first step to a recovery in the housing sector. DeMarco claims:

“FHFA is carefully reviewing the mechanics of the Home Affordable Refinance Program (HARP) program to identify possible enhancements that would reduce barriers for borrowers already otherwise eligible to refinance using HARP. If there are frictions associated with the origination of HARP loans that can be eased while still achieving the program’s intent of assisting borrowers …we will seek to do so.”

Clearing Existing Foreclosures

We must also clear the inventories of foreclosures currently held by the banks. This is seen by FHFA as a crucial component to any plan to help the real estate market recover.

“The second area I would like to briefly discuss is the disposition of Real Estate Owned or REO. In August, FHFA, Treasury, and HUD issued a Request for Information (RFI) on ways to dispose of REO properties. While the Enterprises have considered various approaches to disposing of REO over time, the RFI represents an opportunity to consider new approaches, including possible approaches that include both the Enterprises and the Federal Housing
Administration (FHA). By taking this collaborative approach, the three agencies seek ways to improve returns to taxpayers and bring greater stability to local housing markets. We have received nearly 4,000 submissions in response to the RFI. We are encouraged by the strong response and interest in this effort. Obviously it will take a little time to review so many responses but we are already hard at work doing so. To be clear, this effort is not intended to
develop a single, national program for REO disposition. Rather, we are most interested in proposals tailored to the needs and economic conditions of local communities.”

Bottom Line

To help the market, the two major initiatives FHFA is pursuing are preventing new delinquencies and selling off the backlog of foreclosures that currently exists. Modifications, at best, now appear to be on the back burner.

Read about innovative short sales here.

Why live anywhere but in Woodbridge, Irvine?

I was taking the dog for a walk around South Lake in Woodbridge last night, and the view of the lake was quite stunning.

Here's a short video I took with my iPhone.



I really love working and living in Woodbridge, and it's not only because of all the activities in and around the two lakes, or the 31 parks, the 24 pools, the 4 tennis court complexes, the 8 basketball courts, the barbeques and tot lots.

Perhaps it's the shopping & restaurants, or the great schools?

(My youngest kid loves Woodbridge High where she is a Junior, and also Springbrook Elementary & South Lake Middle, where she was enrolled prior. There
are four Elementary schools, two Middle schools & one High School, in Woodbridge.)
Perhaps it's the great people I've met, and continue to meet, that appeals to me about Woodbridge, but after thinking about it, there probably isn't just one reason, but an accumulation of all of the above reasons!

If you know anyone who'd like some information about Woodbridge, please let me
know. I'll be happy to send them a package, and if they're interested, I can show them some Woodbridge properties that are for sale or for lease. My contact info is at the bottom of this page.

102 Woodbridge homes are currently "for sale", and the prices range from $209,900 for a 2 bedroom attached short sale condo in the Village Green tract, to $1,159,900 for a 3 bedroom 2,366 square foot SFR on Lakeview in Arborlake.

Two new Woodbridge rentals in "Seasons"

I just listed two properties for lease in the Seasons tract in Woodbridge. This tract, with its charming white picket fences, is in high demand, and if these are still available next week, I'll eat my hat!

One is a 3 bedroom listed at $2,500 per month, and the other a 2 bedroom, list price $2,000.

39 Wintermist may be perfect for you if you're looking for a 3 bedroom Woodbridge home with a 2-car attached garage. It is the LARGEST FLOOR PLAN in Seasons. New wooden floors, new carpet, and a to-die-for GOURMET KITCHEN with new cabinets, beautiful stone back splash, stainless steel deep sink & top of the line STAINLESS STEEL APPLIANCES. Light and bright, with an open floor plan. The home has a great front yard and wrap-around back yard. The master bedroom has a HUGE ORGANIZED WALK IN CLOSET. The second & third bedrooms both have mirrored closet doors & organized closets. All bedrooms have ceiling fans, and of course the home is air-conditioned. FRIDGE, WASHER & DRYER are included.

57 Wintermist is a darling ONE-LEVEL townhome.
Great driveway to the 2 car garage, with direct access to the 2 bedroom house. Wood flooring and PLANTATION SHUTTERS. Freshly painted. Open-plan living and dining. Cozy fireplace in living room, with large windows that let in loads of light to the vaulted ceilings in the living room. Master bedroom has glass sliding-door to yard. Both bedrooms have mirrored closet doors. The condo has one of the largest yards in the tract.

California Pending Home Sales Rise for Second Straight Month

Pending home sales in California increased 4.4% in June from one year ago and were up 1.9% from the previous month, the second-straight gain for one of the hardest hit states since the housing downturn, (as reported by JON PRIOR from HousingWire.com), according to the California Association of Realtors.

The distressed property share of the market remained unchanged from the previous month, totaling 47% of all sales. Of these 19% were short sales, dipping from 20% in May. REO made up 27% of all sales in the state, relatively unchanged from the month before.

"Pending home sales have improved in the last couple of months and the next few months should bring continued gains," said CAR President Beth Peerce.

Foreclosure activity is on the decline in the state as well. According to real estate data provider DataQuick, default notice filings dropped 19.2% in the second quarter from last year. The 56,633 filings was a four-year low.

Some counties are heading toward a recovery faster than others. Distress sales made up 20% of the market in Humboldt County, in the far northwestern part of the state. That's compared to Riverside and San Bernardino counties in Southern California where roughly 69% of sales were distressed properties.

"So much depends on the direction of the economy, going forward," Peerce said. "As for the makeup of the market, distressed sales continue to be a significant part of the market with the split between short sales and REO sales varying greatly across the state."

Behind on your house payments? Even if a foreclosure sale date has already been scheduled . . . even if you're doing a loan mod. . . even if you think you're in the eleventh hour . . . I can help.

If your property is in Irvine, Tustin, Costa Mesa, Mission Viejo or anywhere in Orange County, speak to me before doing anything. You HAVE to have a back-up plan. Ask me what your options are!

New law gives added protection to short-sale hopefuls

On Friday, Gov. Jerry Brown signed Senate Bill 458 (Corbett) into law. The new law, which contained an urgency clause and became effective upon signing, protects homeowners pursuing short sales by barring first and secondary lien holders from going after sellers for money owed after the short sales close.

Making sense of the story.

A short sale – a transaction in which the homeowner sells the property for less than is owed on the mortgage – must be approved by the lien holder or lien holders, if there is more than one.

Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short-sale payment as full payment for the outstanding balance of the loan, but the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.

This is great news for people considering a short sale!

Fallen behind with your mortgage payments? If you're presently doing a loan mod, you MUST have a backup plan.

Ask me what your options are.

How to get a good FICO score

Sage advice from John Ulzheimer at Smart Credit on keeping your credit score high. He says he's a broken record on the subject, but I would contend that it is counsel that we need to revisit often...

You know who you are – you want to get the maximum FICO score of 850. You can’t be satisfied with an 849 or even 800. I hate to burst your bubble, but don’t waste your time on trying to reach the maximum score. You can get the lowest interest rates with a score of 760 and above. You don’t have to have the perfect score.

In your attempt to increase your score, you may actually decrease it instead so BE CAREFUL. Some actions you think may work can actually lower your scores, such as closing open accounts with no balance, paying off old charged off accounts, and applying for more credit card accounts.

Your score can change constantly because of the updates to your credit reports by the credit grantors. Even if you pay your bills in full each month, a balance will be reported to your credit reports unless you stop using them altogether.

Profile of consumer with 850 score:
A credit reporting agency and analytics company for communication industry, SubscriberWise, conducted research on their database of one million consumers to analyze those with a FICO score of 850. Of those that received a score, .002% had a score of 850. The average age was 61 years (ages ranged from 44 to 89); and average age of credit file was 30 years (ranged from 1958 to 1994). Keep in mind this was a small population and for a particular industry. That doesn’t mean that those younger can’t achieve the maximum score.

The ideal range is 760 to 810; you still get the best interest rates. Don’t try to game the system. You may lower your score instead. I am a broken record on the best way to keep your credit score high – pay your bills on time, don’t use more than 20% of your available credit, pay down your debt and don’t apply for new credit.

Another spectacular 4th of July in Woodbridge!

Plans are underway for another spectacular 4th of July in Woodbridge!

Join your friends and neighbors for a day filled with activities, laughter, and excitement.

Wristbands are required for the many activities offered at the South Lake Beach Club on the 4th (volleyball tournament, carnival, bingo, swimming at the South Lake Beach Club, and boat races), but are not required for the Ralph J. Redington 5k/10k and Kids Run, and Wheels on Parade.

The run forms and wristbands are now on sale and available for purchase through the Association Office at 31 Creek Road.

There will be 3,000 wristbands available for purchase at $8.00 each and are sold on a first-come, first-serve basis to adult WVA members with proper Facility Identification.
Residents may purchase as many wristbands as they wish!

For more information regarding the 4th of July activities you can visit the Association website at http://www.wva.org/, and if you have any questions, please contact me at (949) 232-5634 or through my website here.

Why They Are Saying to Buy A Home Now?

The Price of a home versus the Cost of the home is often a calculation over looked. Our friends at Keeping Current Matters touch on this and bring 4 articles that all talk to the point that this is the time to buy. Why They Are Saying to Buy A Home Now?...

Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out this month with the same advice: It Is Time to Buy a Home!

Here are the four articles and a breakdown as to why the advice makes sense.

The Wall Street Journal:
Why It’s time to Buy

CBS Money Watch:
Why the Time to Buy is Now

Forbes Magazine:
9 Reasons to Buy a House Now

National Public Radio:
For Many, It’s Still a Good Time to Buy a Home

With prices continuing to depreciate in most regions of the country, some may wonder why these four entities are suggesting to their readership that now is the time to buy.

Each organization realizes that PRICE is not as important as COST. The cost of a home can go up even if prices continue to fall. Unless you are an all cash buyer, you must take into consideration the expense of mortgaging when calculating the full cost of a home.

Here is some information to consider.

Interest Rates
Currently, interest rates sit at historic lows. However, Fannie Mae, Freddie Mac, PMI and the National Association of Realtors are all projecting approximately a 1% increase in mortgage rates over the next year. A one percent increase in rate negates a ten percent fall in prices.

Lending Standards
The government has proposed a tightening of lending standards called Quality Residential Mortgage (QRM). If accepted as proposed two things will happen:

The qualification process for loans will become more difficult.

The cost of a loan will increase.

Bottom Line
There is a reason more and more financial organizations are suggesting to their followers that now is the time to buy a home: because the cost of purchasing a home is about to increase (even if prices continue to fall).

Should You Rent or Buy in this Market?

More good info on the rent vs. buying a home front from my friends at Keeping Current Matters. Get the facts and make a decision. Remember, loan limits look to be changing this fall.

Families are trying to determine whether or not now is the time to buy a home.

Some are advising these families to sit out the current real estate market and instead rent for the next year or two. I don't agree with this advice.

Homeownership means a lot to a family. I also realize that the financial aspects of purchasing a home today can be a concern. The challenge is any advice given by someone in the real estate community is immediately dismissed as self-serving.

For this reason, I want to give you the advice of three entities not involved in real estate sales:


Citigroup

“When we examine the relationships between mortgage payments and income and mortgage payments and rent, we see that these relationships have also reverted back to or below equilibrium points. In some cases, particularly when mortgage payments are compared to the cost of renting, home prices actually appear cheap.”

JP Morgan

“JPMorgan analysts said ‘the continuation of falling rental vacancies and rising rental demand will make home buying increasingly attractive’, especially as rental prices increase.”

Business School professors Eli Beracha and Ken H. Johnson

“Fundamental drivers now appear to be in place that favor homeownership over renting in the near term future…

The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting…

Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Bottom Line

Is it better to rent or buy? According to those quoted above, it seems it may be becoming a no-brainer. Let's talk.

17th annual Studio Arts Festival

The Irvine Fine Arts Center will host the 17th annual Studio Arts Festival on Saturday, June 4 from 9 a.m.-5 p.m.

The Festival will showcase more than 100 local artists and more than 1,000 original works of art spanning across a variety of mediums including ceramics, sculpture, jewelry, painting, photography, textiles and glass. The Festival will also feature live music, food, art demonstrations, and the "crowd favorite" - ice cream sundaes sold in handmade ceramic collector bowls.

Admission and parking are free. Event proceeds benefit special projects and programs sponsored by the Irvine Fine Arts Center. The Irvine Fine Arts Center is located at 14321 Yale Avenue, Irvine. For more information, visit irvinefinearts.org or call 949-724-6880.

For other Irvine information, see http://tiny.ly/vCzJ

Appraisals: Why You Must Now Sell Your House Twice.

In today’s market the appraisal is more important than ever and in many cases it can be a deal breaker. It’s critically important that there is a plan in place to justify your selling price so that you can close your transaction smoothly. Our friends at Keeping Current Matters talk about the situation and how now with Appraisals: Why You Must Now Sell Your House Twice.

Banks have become very conservative when lending mortgage money today. With the current foreclosure challenges in the country, we can’t really blame them. The requirements now necessary to qualify for mortgages have gotten much more stringent and it seems will get even more stringent as we move forward. The banks want to make sure the prospective buyer has the ability to repay the loan.

However, this does not just involve the borrower buying the property.

The second way a bank can protect their investment in the mortgage is to make sure that the collateral backing that mortgage is secure. That is where the appraisal comes in. The bank wants to make sure that, should the buyer not be able to make their payments, the house they will be forced to take back will sell for an amount at least equal to the balance left on the mortgage. For that reason, the banks seem to be getting more conservative with appraisals also.

This past week, the National Association of Realtors (NAR) released their
Existing Homes Sales Report. In that report, they said:

“11 percent of Realtors® report a contract was cancelled in April from an appraisal coming in below the price negotiated between a buyer and seller, 10 percent had a contract delayed, and 14 percent said a contract was renegotiated to a lower sales price as a result of a low appraisal.”

One out of four real estate transactions was either cancelled (11%) or renegotiated to a lower sales price (14%) because of a low appraisal!!

Bottom Line

Every house now has to be sold twice: first, to a potential purchaser and then to the bank appraiser. And, it seems that the second sale may be the more difficult of the two. Sit with a local real estate professional and make sure you put together a plan for both sales.

He didn't look like an agent so I called the police!

OK, there I was at my Broker Preview, wiping down the granite countertop where someone had dropped a piece of California Roll, and he walked in.

As usual, I said "Welcome", and "Come on back for refreshments", but this was before I had turned around and had a look at my latest visitor.

The first thing I noticed, was that his fly was undone. If this was the only odd thing about him, I wouldn't have been at all concerned, but he was wearing a faded pair of denim jeans, and a worn canvas jacket - not the kind of attire that an agent previewing a home usually wears.

On the other hand, I thought to myself, this is Southern California, and it's not like he has a client with him. Perhaps he was working from home
today, and just wanted to preview the home, (and sample some of the seared tuna sashimi or crab roll I had carefully laid out).

Things got a little, weirder. He didn't say a word, as he strode into the kitchen. I handed him the Agent MLS printout of the home, and asked him to drop a business card in the bowl. Still... not a word.... and no card either.

I had sent Mike, (my hubby), for more ice, and by this time, I wished I hadn't.

Irvine is a diverse community, so I rationalized again. Perhaps he doesn't speak English.
(I know, I know. Even if you don't speak English, you know how to say "hi", right!)

So unless he had speech issues, he wasn't an agent - the California Real Estate exam has to be taken in English.

Then he faced the living room & stretched his arms out, as if mentally measuring the room, before heading towards the staircase leading to the upstairs.

"OK", I said to myself, "Enough with giving this guy the benefit of all my doubts!". I headed him off at the bottom of the stairs and said "Sorry, the sellers asked that no-one go upstairs." Well, don't laugh - I was getting concerned by then. If I had a little more time I would thought of something else to say. Also, I wasn't about to let My Weird go upstairs on his own, and I didn't want to be upstairs alone with him either.

I was hoping like H E double-toothpicks that another agent would come in, and then he turned around and headed out the door.

Whew!

I followed him out to the street and saw that he had got on his BICYCLE and had ridden to the house next door. I watched as he opened the gate next door, and walked right into their back yard.



And THAT'S when I called the Irvine Police Department. "Was this an emergency?"
the operator asked. I told her that I didn't THINK so, but thought what if he surprised the neighbor's daughter sunbathing on their PRIVATE lawn, or what if a hundred other scenarios took place? I asked that she send a car over as soon as possible, and then described the man as best I could.

THEN my husband arrived with the extra ice I needed!

We watched the man cycle slowly away.

Two Irvine 5-0 officers arrived within minutes and started looking around. I don't think they ever found him.

I know some of you are thinking I was making a fuss about nothing, but we are talking about Irvine
here - voted by the FBI as the SAFEST CITY IN AMERICA. And not just Irvine. This happened in WOODBRIDGE. This kind of thing just does not happen in Woodbridge, (until now).

My advice to (especially female), agents, is NOT to be alone if possible. Yes, we all know that for Open Houses, that's old advice, but I was at a Broker Preview. I went online and ordered some Pepper Spray for NEXT TIME!

Some are Confused about Foreclosures:

The numerous foreclosure reports we read in the papers and online often contradict each other. One headline will say that foreclosures are increasing, and another discusses the decrease in the number of properties that are foreclosing.


Of course this causes a lot of confusion about
the foreclosure issue.


Let’s try to simplify the foreclosure process.


There are five individual stages in the foreclosure process:

(1) 90 Day (plus) Delinquencies
Most banks include homes where the homeowners are three months behind on their payments, in their foreclosure numbers, but some don't.

This is because less than 2% of those who fall that far behind ever catch up in their payments. The rest will end up as a short sale or foreclosure, and these homeowners hardly ever get a foreclosure notice right away. Sometimes a homeowner trying a short sale will miss a year
or more of mortgage payments, without having received a foreclosure notice.

(2) Homes Already in the Foreclosure Process
Owners of these homes have received a formal court notice which officially starts the foreclosure process.

(3) Homes Already Repossessed by the Bank
These homes have finished the foreclosure process and are now owned by the bank. These
homes are known as REOs (Real EstateOwned).

(4) REOs placed on the Market
This is when the banks hire someone like me to list their REO properties on the market for sale. Some have to be fixed up before being advertised for sale, (you have to see the condition some leave the homes in, even faucets and light bulbs are removed!), while others are put up on the
MLS right away.

(5) REOs Sold
Obviously, these are the REOs, (bank owned homes), that actually sell.

I know, it still sounds confusing….

To truly understand the distressed property situation in Irvine and what impact it may have on prices, contact me.

I’ll be able to simply and effectively explain, with the use of charts & graphs, what is happening in our area, and how it may impact you.

Irvine, Orange County Foreclosure Data, Listings & Trends

Here's an interesting chart from foreclosureradar.com showing the whole city of Irvine.

Thankfully there's not many in the Woodbridge zip codes.

The Foreclosure outcomes can be:
(1) The sale can be cancelled for reasons that include a successful loan modification or short sale, a filing error, or a legal requirement to re-file the notice after extended postponements.

(2) If the property is taken to sale, the bank will place the opening bid.

(3) If a 3rd party, typically an investor, bids more than the bank's opening bid, the property will be Sold to 3rd Party; if not, it will go Back to the Bank and become part of that bank's REO inventory.

Irvine,CA - Foreclosure Outcomes

Real Estate is PERSONAL

Every day we get are bombarded with data & statistics. Housing demand is up, then housing demand is down; more job losses, then unemployment is improving; foreclosures, short sales, housing inventory, interest rate movements and much more. It’s enough to make anyone’s head spin! There’s an old saying that claims: “All real estate is local”. I believe that means that we should looks at individual neighborhoods, (like Woodbridge for example), or even tracts within neighborhoods, (there are 40 tracts in Woodbridge), rather than look at the whole US market as reported on TV. How can the average or mean numbers in the whole country be even close to the numbers in one tract in one neighborhood? It’s very unlikely, don’t you agree? When prices are falling nationally, there are some places where prices are holding steady or rising. Look at the real estate section of today’s OC Register & see for yourself. I also believe that even that old saying is too broad. Buying a home isn’t a local phenomenon….it is a personal one. It’s the same as the economy. Even though the US of A has been going through a national downturn, a lot of peeps are having their best years ever. I agree that unemployment and foreclosure are tragic realities and things to be aware of, (let’s not stick our head in the sand like ostriches), but for those of us not in those situations, we need to make decisions that will best serve our personal goals. To that end, I am confident that is a great time to buy a home because: (1) Historic low interest rates make more house more affordable, (2) There’s a huge amount of available inventory, and (3) Finally home prices are back in line with income levels again. I believe that it’s also a terrific time to sell. Correctly priced homes are selling almost immediately. Sure you wish you had sold in January 2007, but remember that sellers become buyers. When you buy your next home, you’ll get the advantages that buyers are enjoying now, as well.

Woodbridge Market Update

The highest priced Woodbridge home right now is a 5 bedroom 3,860 square foot SFR on Coldbrook in the Gables. It is definitely worth a look! The prices of Woodbridge homes for sale right now, range from $245,000 for a 2 bedroom attached short sale condo on Rockwood, to $1,350,000 for the Gables home. There are 101 Woodbridge homes currently for sale, including the very spacious 400 E Yale Loop townhome, which is offered at $630,000. Priced to sell! See more at http://www.sagorin.com/ 26 Woodbridge home sold in March 2011, at prices from $245,000, (for a 1-bedroom Standard Sale in Park Vista), to $695,000 for a 4-bedroom home on Bitterwood.

I just listed a great Savannah model.

Let me know if anyone you know might be interested in this UPGRADED, turnkey, GROUND LEVEL, wheelchair-accessible 2 bedroom townhome! Light and bright throughout with NEW CARPET, decorator paint, wooden blinds, dual-pane windows, 9ft ceilings, recessed lighting. Convenient inside laundry. The gourmet kitchen has GRANITE COUNTERTOPS, stainless steel appliances & Mocha cabinets. The fridge, washer & dryer are all included. Check out the sparkling Association amenities, including pool & spa, (the three pools have free Wi-Fi access), clubhouse, parks, TOT-LOT & basketball.

What to do about this Craigslist scam?

I routinely post my listings onto Craigslist, (as well as a bunch of other sites of course!), but this is the first time I've seen this scam! I posted a lease listing on Craigslist this week. Here's the actual ad. Imagine my surprise when I received an email from another Orange County agent, advising me that her clients had spotted my $2,900 per month listing advertised on Craigslist for $700 per month! She suggested I take a look at the fake ad. They stole photos and some description from my ad, reduced the price by a couple of thousand, but it gets worse:

The contact email address they posted on Craigslist was fake, but they used the owner's name! They set up a Yahoo email account using my client's name, (email address hidden)! This means that they must be pretty savvy, to check the tax records & get the owner's name.

Interested to see the reply-email you get when you respond to the fake ad? See below.

I guess the next thing that would happen, after someone naively enters their information in the form below, would be for them to receive an email asking that a deposit is wired to their West African, (Nigerian), bank account. Here is the email response:

From: (email address hidden) Date: Tue, Mar 29, 2011 at 5:13 AM Subject: Re: $700 / 2br - Two bedrooms PLUS DEN! Fabulous tranquil end-unit location with two pr (Irvine, CA) Hi,

I can see you are interested in the ad I have posted, I am currently in West Africa with my family where we work as a volunteer with the Missionary, here is the site www.missionary-blogs.com for more details about why we are here in West Africa .We spent less time in the States so we could not get a hold on any Realtor to handle this rent issue, although it was when we knew how long we are going to stay in West Africa that we decided to rent out the house. However, the initial plan was to sell out the house. which we tried, but sometimes the agents inflates the price and it takes longer to sell we are telling you this in case you find the house on another website, that is the old advert So we need a tenant to take care of it but since we are out of the state now, we have received some proposals regarding the rent because it is located in a very good area of Irvine, but we still have to make sure it is rented out to someone who can take good care of it.The keys to the House are right here with me and i could send it to you after all necessary agreement has be accepted by my family,It includes facilities such as water and heat laundry facilities, air condition, internet and telephone access and a car park and other necessary facilities, also comes with trash collection, pets are allowed as well as long as they are not destructive,we also want you to let us have trust in you as we always stand on our word. So if you know you are capable of the task,It is available for a long lease.The monthly rental fee is $700 per month including the utilities and the security deposit is $500 which is refundable back to you at the end of your stay if nothing is damaged from my properties.It is not the money that is the main problem but we want you to keep it tidy all the time so that we will be glad to see it neat when we come for a check up.You will only be able to drive by the house for now but not have a look at the interior until we have sent the keys and documents of the house to you.So we wouldn't want any violation on our property if finally rented by you. Please if you are ready now to occupy the house kindly provide the information below for record purpose RENT QUESTIONNAIRE - PLEASE TELL US ABOUT YOURSELF

Full Name__________________________ ________________________

Home Phone ( ) ________________________

Date of Birth_________________________ ________

Other Phone ( ) ___________________

Current Address_______________________ ________Apt#________ City__________________ State______ Zip________

Reasons for Leaving_______________________ _____Rent $__________

Phone ( ) ____________________________

Are you married_______________________ _____

How many people will be living in the house_________________________ ___

Do you have a pet___________________________ _

Do you have a car___________________________ _

Occupation____________________ ________

Move In Date__________________________ __

How soon can you secure the property with the down payment_______________

How soon do you want to receive the keys and documents of my property______

House Address: 105 Lakeshore,Irvine, CA 92604

Looking forward to hear from you with all this details so that we can have it in my file in case of issuing the receipt and contacting you. Await your reply so we can discuss on how to get the document and the keys to you.Please Note that your rent only starts counting after you have finally moved into the house,so you need not to worry about making the deposit payment now and not moving in immediately,all you're doing is securing the house in your favor in order not to loose it to other interested applicants..

Hope to read from you soonest...

011-234-806-431-5450 or +234-806-431-5450 (call anytime)

Thanks so much

This Woodbridge townhouse is just steps from North Lake!

I just listed this great Woodbridge townhouse for lease.

Know anyone who may be interested in 105 Lakeshore?

Two bedrooms PLUS DEN!

Fabulous tranquil end-unit location with two private outside areas. Steps to North Lake.

Spacious master suite with huge walk-in closet, retreat, private balcony and wonderful bathroom with dual vanities.

Second bedroom has mirrored closet doors. Formal dining room.

PLANTATION SHUTTERS throughout. Vaulted ceilings. Fireplace in living room. Stained-glass in front door.

VERSATILE DOWNSTAIRS DEN with sliding doors to enclosed yard, (great for overnight guests). Light and bright kitchen with lots of counter space.


Enjoy your morning coffee in the breakfast area, while looking out the Bay window to your front yard with the nicest lemon tree you will ever see. Unique fridge with beverage chiller is included, as well as washer/dryer.

A MUST-SEE.

Walk to lake, parks, pools and schools.
See more

First-Time Home Buyers Prepare for Best Buyer’s Market in Recent History

While affordable housing prices, ample inventories, and historically low interest rates signal ‘buyer’s market’ for investors or move-up buyers, inexperienced first-time buyers may not know if the time is right to make a move into real estate.

It’s not about timing the market, but rather about time in the market.

Once you know how long you expect to own a home, look at the historical value performance of properties in the neighborhood. Remember that the neighborhood is important because there can be huge differences in performance from area to area, (eg Woodbridge to Woodbury), and also from tract to tract, (eg Landings to Seasons).

Be confident about your own job security, down payment resources and tolerance for upkeep, as well as the lifestyle you want today and in the near term. While homeownership may not be for everyone, it is the right choice for hundreds of thousands of people.

Today’s housing market, especially for first-time buyers, makes it almost impossible not to think about the possibilities.

To help first-time buyers know if they’re ready to look for the home of their dreams as we head into this year’s home-buying season, the experts at Move have created a ‘reality checklist’ designed to help them decide if the time is right.

Get your financial house in order
Before you decide to buy a home, it’s essential to make sure your credit is in good shape and repair any damage previously done. Know your credit score: thirty-five percent (35%) of successful buyers recently reported they didn’t know their credit score when they went house shopping. Having enough money set aside for a down payment is a key component to making sure you are ready to purchase a home. Also, it’s important to not put all of your money in the down payment as other fees or unexpected expenses often arise after closing.

Don’t fall in love with a house you can’t buy
Find out how much you can afford: establishing your purchase power upfront, including how much money will be required for a down payment and closing costs, is a must for first-time buyers. Look for special loans available from FHA and government sponsored loans for first-time home buyers that reduce the amount of money required to get into a home. I can put you in touch with a few Orange County lenders who can help you.

If now isn’t the right time, prepare for your future purchase
If now isn’t the right time to buy a home, make a plan with a target date for when you expect to be ready. Improving your credit, paying down debt, stabilizing your work history and calculating exactly how much you can afford, are the best ways to prepare for your future home purchase. It’s also important to refrain from making any new large purchases or applying for new credit.

Including 400 E Yale Loop, there are 95 for sale now.

95 Woodbridge homes are currently "for sale" - that's including my latest listing at 400 E. Yale Loop.

Have a look at some photos on my website.


Right now, the prices of Woodbridge homes for sale range from $1,350,000 for a 5 bedroom, 4 bath, 3,860 square foot home in the Gables tract, down to $230,000 for a 1 bedroom, 1 bath, attached short sale condo in the Laurels.

19 Woodbridge home sold in February 2011, at prices from $295,000 (for a 2-bedroom REO home on Fallingstar in the Laurels), to $1,140,000 which was the sales price for 25 Sandpiper, a 5 bed, 3 bath, 3270 sq ft beauty.

One Woodbridge home has been languishing for 938 days

96 Woodbridge homes are for sale at this time, the lowest-priced one being a 1 bedroom 1 bath short sale condo in the Laurels.

One of these 96 homes is on Lakeview in the prestigious Arborlake tract and has been languishing on the market for a staggering 938 days!

There are actually four homes on Lakeview currently on the market, and one of them was just listed this week.

This one is one of two that actually HAS a lake view, is a standard sale, and is priced at $1,179,000, making it the highest priced Woodbridge home on the market for sale right now. It is a 3 bedroom detached condo, and certainly a gorgeous home.

Just over half of the Woodbridge homes for sale are standard sales, the rest being probate, bank owned or short sales.

23 distressed homes and 18 standard sale homes are in escrow, (41 in total).

Only 11 Woodbridge homes closed in January, and ALL were standard sales. Prices ranged from $313,000 to $1,138,000. Yes, the highest priced home was on Lakeview in the Arborlake tract!

Where's Waldo, (I mean Gabi & me)? At the Marine Corps base of course!

Yesterday was a fun day at the Marine Corps base in Camp Pendleton for my daughter Gabi and me.

About 700 of us helped out at our second annual Operation Valentine by making thank-you cards and packing gift boxes for the Marines in Iraq.

We're proud members of a charity organization called National Charity League, (Irvine Chapter), which is a mother-daughter volunteer group that supports local nonprofits while developing leadership skills for the young 'uns!

It took me a minute to find Waldo, (I mean Gabi & me!), in the photo below, which appeared in the Orange County Register last night.

Here's a link to the story.