Strategic Default/Foreclosure VS. Short Sale

Strategic Default/Foreclosure VS. Short Sale

What are the Homeowner Consequences in each?

Most persons losing their homes to foreclosures
do not realize there are better options available to them today.

Do you know anyone that could benefit from this information?
Please have them call me or visit my
Short Sale and Foreclosure Avoidance Web Site at

http://hafashortsaleconsultant.com/
for more information & free reports.
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Future Fannie Mae or Freddie Mac Loan - Primary Residence

Foreclosure
A homeowner who loses a home to Foreclosure will not be eligible for a Fannie Mae, Freddie Mac, VA or Conventional Mortgage for a period of 5 years.

Successful Short Sale
A homeowner who successfully negotiates and then closes a short sale WITHOUT BEING LATE on any obligation may be eligible for a Fannie Mae backed mortgage after only 2 years and a conventional or FHA loan immediatly. Several conditions apply.

VA loans whether late or not, and FHA loans with late payments are a 3 year wait.

Conventional loans are a 2 year wait if there are late payments.
______________________________________________________

Future Fannie Mae Loan – Non-Primary Residence/Investor

Foreclosure
An Investor who allows a property to go to Foreclosure will not be eligible for a Fannie Mae backed investment mortgage for a period of 7 years.

Successful Short Sale
An investor who successful negotiates and closes a short sale may be eligible for a Fannie Mae backed investment mortgage after only 2 years.

Conventional investor loans will take 5 to 7 years depending on late payments.

_____________________________________________________

Future loan with any Mortgage Company

Foreclosure
On any future 1003 application, a prospective borrower will always have to answer YES to question C in Section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title deed in lieu thereof in the last 7 years?" this will affect your future interest rates.

Successful Short Sale
Does not apply on a short sale.

________________________________________________________

Credit Score - FICO Score

Foreclosure
May be lowered anywhere from 250 to 300 points or more.
Typically this will affect the credit score for over 3 years.

Successful Short Sale

Only the late payments on loan will show and after the sale. The loan will be reported as paid as agreed or negotiated or settled. This will lower the credit score as little as 50 points provided all other payments are being made on time. A short sale's affect on credit can be as brief as 12 to 18 months.

_________________________________________________

Credit History

Foreclosure
Foreclosure will remain as a public record on a person's credit history for at least 10 years.

Successful Short Sale
Short sale is not reported on your credit history. There is no specific reporting item for 'short sale'. The loan is typically reported “paid in full, settled” or as “paid as negotiated”.

__________________________________________________

Security Clearances

Foreclosure
Foreclosure is the most challenging issue against your security clearance outside of a conviction of a serious misdemeanor or felony. If a person has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other job that requires a security clearance,  the clearance will be revoked and position will be terminated, in almost all cases

Successful Short Sale
A Short Sale by itself, does not challenge most security clearances.

_______________________________________________________

Current Employment

Foreclosure
Employers have the right to, and are actively checking, the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases can be grounds for termination or immediate reassignment.

Successful Short Sale
A short sale is not reported on the credit report and therefore is not a challenge to employment.

_____________________________________________________

Future Employment

Foreclosure
Many employers are requiring credit checks on job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will be a challenge to employment.

Successful Short Sale
A short sale is not reported on a credit report and is therefore is not a challenge to employment.

__________________________________________________
Deficiency Judgment

Foreclosure
In California, there is no deficiency judgment for purchase money loans for 1-4 units.

For non-purchase money loans,  the lender has the right to pursuit a deficiency judgment against the homeowner in some cases.
Successful Short Sale
In some successful short sales, it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner. If you are approved under HAFA, there can be no deficiency judgment.
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Strategic Default/Foreclosure or Short Sale. 
Which one is better for you?

See my Short Sale and Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/
for more information and free reports.

This article was revised 5/3/2010, after the new HAFA guidelines came out.

As always, this article is for informational purposes only and is not legal or tax advise.  You should contact the appropriate professional to see how a Strategic Default/Foreclosure or a Short Sale will affect you.





Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert

Donna "Sunshine" Smith, SFR, Realtor® DRE# 01249837
Short Sale, Foreclosure Resource Certified

RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm
 
You can view all available San Diego area homes for sale at
http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego Count

San Diego Real Estate Newsletter - Prices & Sales up sharply

San Diego Real Estate Newsletter -
Prices and Sales up sharply in San Diego County

See the full newsletter here
http://tinyurl.com/4-9-RE-Newsletter

As of 4/09/2010
House and Condo Sales by the Month with Average Price:


Mar 2010 were 2793 at $423,372 at $246.45/sqft  
Feb 2010 were 2113 at  $397,932 at $234.06/sqft
Jan 2010 were 2040 at   $391,775 at $230.39/sqft
Feb 2009 were 2197 at  $341,818 at $209.39/sqft

WOW!!! Prices Up 7% from last month
Sales up 32% over last month
Cost per SqFt is also up.
Active listings: 9535, up over 5% from February, only a 3.6 month supply
Of those, only 773 (up from 667 in Feb) are Bank Owned Foreclosures, a 32 day supply.
2217 (2120 in Feb) are short sales (almost 25%)
There are also another 6170 Short Sales that are Contingent or Pending!!!

Five to six months inventory is a balanced buyer/seller market.
In the lower price ranges, we are in a strong sellers market,
in the higher prices, we are in a buyers market.

Pending Listings: 4528, down from 5785 in Feb.
1025 of these pending sales are Bank Owned.
1981 are Short Sales and 1585 are regular sales (down from 2744 in Feb).

21 days left for the $8000/$6500 Tax Credit

That's only 3 weeks till the Tax Reduction/Credit is scheduled to expire!

We now have a new State buyers tax credit for $10,000.
That takes over where the Federal Credit stops…Close after May 1st,
and you need to be under contract by 12/31/2010.
Limited funding so may not last long. Some say in 2-3 weeks!!!

YES, you can double dip if you are in escrow by 4/30 and closed by 6/30/2010.

Check out the important details and BIG differences at:
http://sandiegohomes4ucom.blogspot.com/2010/03/new-ca-homebuyer-tax-credit-up-to-10000.html

5 Reasons why you should be Under Contract by 4/30/2010…or not.
1 Federal Tax Credit Expires 4/30/2010 for 1st timer

2 Double Dip on the State Tax Credit for 1st timer or new construction

3 Free Mortgage Protection Program ends 6/30/2010 for 1st timer

4 Entry Level price homes Rising

5 Interest Rates are Rising
Why you do not need to be under contract by 4/30/10
If you are not ready – timing, finances, home to sell,  job uncertainty/relocation or ?


Call me ASAP if you want to be in escrow by the deadline so you can Double Dip!
Or just get a home.





Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert

Donna "Sunshine" Smith, SFR, Realtor® DRE# 01249837
Short Sale, Foreclosure Resource Certified

RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

See my Short Sale & Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm
You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

Short Sale & Foreclosure Avoidance Program

Short Sale and Foreclosure Avoidance program that works

I just completed a seminar on the new HAFA Short Sale program.  This is the best government program yet to help those people who are underwater on their homes, to avoid foreclosure.


See my site to learn if you, or a friend, qualifies for HAMP, HAFA, Short sale or Loan Modification instead of foreclosure.  Click on "Government Programs Eligibility" in the upper right corner.

Answer most of your questions on how to avoid foreclosure.
http://HAFAShortSaleConsultant.com/

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert

Donna "Sunshine" Smith, SFR, Realtor® DRE# 01249837
Short Sale, Foreclosure Resource Certified

RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.

dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

See my Short Sale & Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at
http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

New CA Homebuyer Tax Credit up to $10,000. AB 183

New CA Homebuyer Tax Credit up to $10,000. AB 183
Assembly Bill No. 183 passed the Assembly and Senate on 3/22/2010
The governor signed it the next day.

AB 183 picks up when the $8000 Federal Tax Credit leaves off - May 1, 2010.
If you are under contract by 4/30/2010 and close by 6/30/2010, you could get $18,000.

1. The purchase of a qualified principal residence on or after May 1, 2010 and before August 1, 2011, pursuant to a contract executed on or before December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, until the $200,000,000 is gone.
Some say in 2-3 weeks!!!
(Under contract on or after 5/1/2010 and by 12/31/2010, and closed before 7/1/2010)

2. The amount of the tax credit is the lesser of 5% of the purchase price or $10,000, which means any home over $200,000 in price will be limited to the $10,000 credit.

3. The total allocation of $200,000,000 in tax credits is divided between first time home buyers and purchasers of homes that have never been lived in (new homes), $100,000,000 being allocated to each type of purchaser.

4. Only one credit will be issued to a first time homebuyer that buys a new home.

5. A “qualified principal residence” is an attached or detached home that will be used as the principal residence of the purchaser, and has either never been occupied, or is purchased by a first time home buyer.

6. A “first time home buyer” is and individual, or individual's spouse, who has no present ownership interest in a principal residence now or over the three previous year period, ending on the date of purchase.

7. The tax credit is non-refundable, meaning it is a use it or lose it credit. NOTE...You would need to have $3,333 of state tax liability each of the next three years to utilize the maximum amount of the credit available. It will be allocated over three years, beginning with the year the escrow closes on the new home.

8. You must apply for the credit within 2 weeks of closing or lose it.

9. Buyer must live in the home for 2 years or return the money.

If you are under contract by 4/30/2010 with a qualifying home, and close by 6/30/2010,
you should be able to double dip!!!  You can get both the State and the Federal Tax credits but you must hurry.  competition is high and inventory under $500K is low, therefore we are getting multiple offers on most properties under $500K.

AB 183  is the New CA Homebuyer Tax Credit for up to $10,000.




Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.

dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

See my Short Sale and Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm
You can view all available San Diego area homes for sale at
http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

The Owl Box streaming video - WOW

No time to get hooked on Nature?
Do not go to this site or you are done.

The Owl Box cam at http://www.ustream.tv/theowlbox
 
My friend and past mentor/broker, Carlos Royal, is live streaming 24/7.
 
Color during the day, b/w infared at night.
 
Momma barn owl is on 4 eggs & 1 chick. Dad brings food.
 
Warning, it can be addicting.

Are you REALLY ready to buy a home?

Are you REALLY ready to buy a home?

Scenario...
We are out looking at homes and we see a for sale sign being installed. We call and the agent says it will be in the MLS tomorrow. The agent states that you MUST Pre-qualify with THEIR preferred lender. We have the chance to beat everybody to the property.

Are you ready to supply the following information to their preferred lender?

Is it all packaged in one place where it can be sent within the next 5 minutes?

1 - Last 2 to 3 years of Tax Returns
2 - Recent pay stubs proving year to date earnings
3 - A photocopy of the driver's license
4 - Copy of all recent bank statements
5 - Copy of all investment accounts
6 - Front page of your Credit Report with FICO score (may require their own)
7 - Copy of a completed loan application (may require their own but now easy to complete)
This is the basic for most lenders but they may have other requirements.
These will be needed for each person on the loan.

If you are not ready to provide this info ASAP, you may end up in the middle of a competitive bidding situation instead of the first offer.

Which is your choice? Are you REALLY ready to buy a home?
PS, bring your checkbook for a good faith deposit.

Of course, all this assumes that I have already received your Pre-Approval from a Direct Lender. If not, that is your first step. I can provide you with a referral to a top lender here or almost anywhere in the US or Canada.

If you are buying with ALL cash, you will need:
Recent copies of bank statements (dated within 30 days, including your name, institution & the account numbers with enough money for the purchase & closing costs. Some banks will not allow stock accounts.)


Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Agent

RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm 

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm 

You can view all available San Diego area homes for sale at
http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

Buying but concerned about job stability

Thinking about buying a home but concerned about your job stability?

If that is a concern, the C.A.R. H.A.F. Mortgage Protection Program may help.

If you lose your job, you can get up to $1500 a month and a co-borrower can get up to $700 if they lose their job.  You could get that money for up to 6 months. Some conditions apply.
There is no cost to the buyer!

TO QUALIFY FOR THE C.A.R. H.A.F. Mortgage Protection Program APPLICANTS MUST:
· Be a first-time home buyer – someone who has not owned property in the last three years. (includes co-buyer).
· Close on or before June 30, 2010 (or till funds run out)
· Use a California REALTOR® in the transaction (me, hopefully)
· Be a W-2 employee (cannot be self-employed)
· Purchase the property in California
 
Please call me for more details on the C.A.R. H.A.F. Mortgage Protection Program or any other questions on buying or selling Real Esate.

 

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert

RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!

http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at
http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

HANDBOOK for 2010

HANDBOOK for 2010


Health:

1. Drink plenty of water. (If you can't dump soda, drink lemon selzer water)
2. Eat breakfast like a king, lunch like a prince and dinner like a beggar.
3. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants..
4. Live with the 3 E's -- Energy, Enthusiasm and Empathy
5. Make time to pray.
6. Play more games
7. Read more books than you did in 2009
8. Sit in silence for at least 10 minutes each day
9. Sleep for 7 hours.
10. Take a 10-30 minutes walk daily. And while you walk, smile.

Personality:

11. Don't compare your life to others. You have no idea what their journey is all about.
12. Don't have negative thoughts or things you cannot control. Instead invest your energy in the positive present moment.
13. Don't over do. Keep your limits.
14. Don't take yourself so seriously. No one else does.
15. Don't waste your precious energy on gossip.
16. Dream more while you are awake
17. Envy is a waste of time. You already have all you need..
18. Forget issues of the past. Don't remind your partner with His/her mistakes of the past. That will ruin your present happiness.
19. Life is too short to waste time hating anyone. Don't hate others.
20. Make peace with your past so it won't spoil the present.
21. No one is in charge of your happiness except you.
22. Realize that life is a school and you are here to learn. Problems are simply part of the curriculum that appear and fade away like algebra class but the lessons you learn will last a lifetime.
23. Smile and laugh more.
24. You don't have to win every argument. Agree to disagree...

Society:

25. Call your family often.
26. Each day give something good to others.
27. Forgive everyone for everything.
28. Spend time w/ people over the age of 70 & under the age of 6.
29. Try to make at least three people smile each day.
30. What other people think of you is none of your business.
31. Your job won't take care of you when you are sick. Your friends will. Stay in touch with them.

Life:

32. Do the right thing!
33. Get rid of anything that isn't useful, beautiful or joyful.
34. GOD heals everything.
35. However good or bad a situation is, it will change..
36. No matter how you feel, get up, dress up and show up.
37. The best is yet to come..
38. When you awake alive in the morning, thank GOD for it.
39. Your Inner most is always happy. So, be happy.

What resonates for you???

One of my favorite sayings from William Johnson is:
If it it is to be, it is up to me.

My friend and client, George Seymour, sent this to me. It has been going around the internet recently but it is well worth re-posting.

What is “Value Range Marketing, VRM, price range marketing

What is “Value Range Marketing, VRM, price range marketing
I brought the first buyer that successfully closed a “price range” listing on 8/16/1995.

Range Pricing started in San Diego and San Diego has remained the stronghold. Some other MLS’s do not allow it.

I use price ranges for sellers when, and how, it makes sense. It works well in the right circumstance but it can be confusing for the inexperienced agent or the homebuyer.

Conventional thinking for many buyers is “Why would I offer more than the low end of the range?” That is a valid question. I always recommend that buyers use the range pricing as a search guideline only. Then place their offer according to the comparable prices I provide. Same thing with the bank owned properties. Some banks are pricing properties 10-20% below the comparable sold prices and letting the buyers bid them up to market value or above.

Bank owned listings almost never use a range (only 23 of 7078 in the last 6 months). Since much of the lower end inventory was bank owned, we did not see ranges as much. Now that prices are going up, and bank inventory is dropping significantly (only 696 active bank owned house or condo listings as of today in all of San Diego County out of 7456), we see more regular sellers entering the market, along with investors selling their flippers. Both groups are more likely to use price ranges.

The Value Range Marketing good: More buyers will see the listing.
If the property is worth at, or a little above, a big round number such as $300,000, the seller is in a quandary. If it is priced $10K above that round number, say $320K, most buyers who only want to spend $300K will not see it. If they price it lower, they are afraid they will not get offers over asking, to where the actual value is.

The Value Range Marketing bad: Not understanding how it works.
1 - Agents that have too big a range…20% or more on each side. $240K to $360K. Get real! Are you a professional or not?
2 – Too small a range. $10,000 spread on the range. $270K to $280K
3 - Range pricing top just under the big round number: $270K to $299K
4 - Weak agents that can not convince sellers of the real value of their property. The agent knows the home will sell for no more than $400K but the seller thinks it is worth (or seller needs to get) $500K. Therefore, $400K to $500K range.
5 - Ineffective pricing: having the bottom price range just above the big round number such as $305K to $330K. The low price probably should have been $299K.
6 – Agents who do not know how to properly explain how range pricing works.


Where you ultimately end up closing in relation to the high and low price with a range listing is dependant on what the range pricing is, compared to the market value of a home and how the range is used.

In the “hot” market, I would call the listing agent and ask, “Do we have to be over the high range?” Often the answer was yes because the market was moving up so fast.

From 2007 to Feb of 2009, as prices dropped, more offers were accepted under the low range price. That is changing now with the low amount of inventory under $500K

I just checked 100 range price listings of the 362 sales within the last quarter over $500K and they sold as follows: 27 under, 61 within & 14 at or above the high range.
The under $500K was similar: 14 under, 64 within and 23 at or above the high range.

Ultimately, every situation is different for the buyer and for the seller in what their goals and negotiation strategies are.

The MLS states “The seller will entertain offers between low price and high price”.
If you offer near or under the low price, the sellers says ”That is entertaining, now lets start negotiating”.

Call me so we can meet your Real Estate Goals for 2010.  The opportunities are there!





Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
RE/MAX By-the-Sea
Formerly with Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

San Diego Area Home Buyers Alert

San Diego Area Home Buyers Alert

The first quarter of 2010 is going to be a challenging time but worth the effort for the greater San Diego area home buyers,
especially for the under $500,000 houses and condos.
(This is good news for sellers.  Call me for the sellers plan.)

The available total inventory is down from the peak 14,709 on 2/6/09
    to 11,317 on 1/4/2010.
Only 3726 homes under $500,000 are available which is a 50 day supply.
1407 of the homes under $500,000 are Short Sales.
The number of bank owned properties is 70% lower than it was a year ago. There is only a 3 week supply (734 on 1/4/2010).
Each quarter we hear that the banks will start dumping homes on the market but not yet and probably not ever…see my Blog article at http://sandiegohomes4ucom.blogspot.com/2009/10/where-are-all-foreclosures-san-diego.html

Short Sales are still taking 3 to 9 months to close, despite a push from Obama. They keep telling us they will get quicker but that is what we have heard all last year.

You must be in escrow by April 30, 2010 to get your Tax Rebate.
A big time pressure for buyers...but many will procrastinate...DON'T.
For best results, START LOOKING NOW! Plan to buy in Jan. or Feb.
There is some talk or extending it but, can you take that chance?
Many will wait till Mar or April and will loose out.

The Senate Finance Committee and Capitol Hill in general, are not inclined to extend this program again. The National Association of Realtors, the lobbyist for this program, were cautioned that any discussion regarding a further extension of the program was not likely, and would certainly be met with opposition..
Lenders have tightened up on the requirements again.
Interest rates will go up, possibly to 6% which is a 16% increase, over the current 5%.
See  the Washington Post article at http://tinyurl.com/ylpk9ag about how the Fed will not buy MBS - Mortgage Backed Securities after March 31st and how it will cause interest rates to rise.

What can the serious buyer do to get a home?
1 – Be totally ready with your financing. That means a fully documented loan package submitted to the lender before you start looking for a home. Banks & FHA continue to tighten up their requirements. They want to see higher credit scores (640+ FICO), at least 3 active credit lines (suggestion: pay your utilities on line or buy a tank of gas a few times a year so every card shows activity), no late payments or new collections in the last year. Keep all credit cards below 40% of your limit at all times.

2 – Be prepared to make several offers before you get one accepted. There is a lot of competition as many buyers are fighting for a limited pool of homes and they also need to buy before the Tax Rebate deadline of 4/30/2010. There is no perfect home so do not fall in love with the home until it closes. Remember what your goals are for this home. It probably will not be your last home so think 3-5 years or 5-7 years…whatever your time frame is.

3 – Be prepared to pre-qualify with several lenders along the way. You may still use any lender you chose. Each bank owned property wants you to qualify with them for 2 reasons…they want to find out if you are really qualified, and they want to have a chance of getting your loan. Strategy: keep a copy of your loan application from your first lender along with your credit report & FICO score, copies of pay stubs, bank statements, 2 years of tax returns and more.

4 – Make your first offer, your “Highest and Best” offer. Most of the time the banks will come back to some or all of the buyers in a multiple offer situation and give everybody a second chance. However, some banks will take the first good offer, or the best looking offer without a counter. Wouldn’t it be great if it were your offer that was accepted.

5 – Prices are going up (they have for 10 months in a row). So reasonably higher offers are OK. Todays appraisers often come in on the low side of the property value. If your offer is way too high, the bank will see through that ploy. However if you offer a reasonable amount over the comparable sales, the appraisal may help you bring the price down. Since prices are going up, even if you think your offer is high, you will look back and say “Remember when we bought this house for $X.XX and now it is worth much more than that…we could not afford to buy our own house today”. 

This first quarter will be a challenging time but worth the effort for the greater San Diego area home buyers.  I do not expect to see these prices again.

In the San Diego Union Tribune on 1/3/2010, the caption to the housing chart was "Median price 48.4% higher than January 2000".  Real Estate will always be a good long term investment and sometimes a good short term investment.  Now is the time to buy near the bottom and ride the prices up while you live in, and enjoy your home.

6 – Be on top of the listings and the market. Many of the San Diego area bank homes and regular homes are getting multiple offers and are going into escrow quickly, some in 1 or 2 days of being listed. If you know the market, you will see the value and be ready to make a decision right away without “sleeping on it”. A one day delay could be all it takes to loose the home.

7 - Keep looking, even after you have submitted an offer. If you do not get this one, you must be ready when the next one appears.

Buyers, we need to schedule an appointment to plot our strategy to get you into your San Diego area home. Call me to set an appointment to meet, review your needs and wants, then visit some homes. Call my cell at 760-212-8225 today!


Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido and San Diego County.

Fed to allow interest rates to rise in the first quarter 2010

Fed to allow interest rates to rise in the first quarter 2010

"ALL GOOD THINGS MUST COME TO AN END..." Last week, the Fed restated that, once again that their Mortgage Backed Security (MBS) purchase program (the program that has done much keep home loan rates low for most of the last year...will end on March 31, 2010.

This means there will be less money to borrow. Simple supply & demand...less money to borrow means interest rates to rise!

It is important that buyers get in line for the lower current interest rates early while the supply is high and the rate is low.

This will put double pressure on prices in the short term, especially from early Feb. through mid March. Higher interest rates on the horizon and the end to the tax credits, along with a shortage of inventory means prices will rise quickly in the first quarter, especially in the under $500K market.

Buy early and save 3 ways...Lower prices and lower interest rates now along with the tax credits.
Call me now to see how you can beat the rush, get a great home with low interest rates at a good price and use your $8000 or $6500 tax credit. 760-436-0087



Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in the North Coastal San Diego area including Del Mar, Solana Beach, Rancho Santa Fe, Cardiff by the Sea, Encinitas, Leucadia, Olivenhain, Carlsbad, La Costa, Aviara, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido & San Diego County.

Dennis Smith earns Certified Distressed Property Expert Designation

Dennis Smith earns Certified Distressed Property Expert Designation (CDPE) to help homeowners in danger of foreclosure.
PRESS RELEASE

Dennis Smith of Taylor Place Real Estate & Triad Properties has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.
Short sales allow the cash-strapped seller to pay off the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
In the San Diego area, more than 5500 homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
“This CDPE designation has been invaluable as I work with buyers, sellers and lenders on complicated short sales,” said Smith. “It is so rewarding to be able to help sellers save their homes from foreclosure.” Smith offers free counseling to people that are in distress with their Real Estate, whether it is Pre-Foreclosure, Short Sale, Loan Modifications, Late Payments or are just concerned about their future options. Call 760-436-0087.
Smith has been a Realtor in San Diego County since 1994. Smith says “Both Real Estate firms I have worked for have specialized in “distressed” properties. I have worked in the pre-foreclosure arena for 15 years and the CDPE designation enhances my ability to help homeowners who are in trouble, or may be in the future.”
"The CDPE education also helps me work with buyers who want to take advantage of deals in "distressed" property such as Short Sales and Bank Owned REO's and Foreclosures."
Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Dennis Smith with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.
Are you, or do you know someone, in a "distressed" situation with real estate? Do you need knowledge or assistance with Pre-Foreclosure, Foreclosure, Short Sales and Loan Modifications. We can help with free consulting. You can learn what your options are and you get to decide the course of action to take.
I have a large network of Real Estate experts in other areas of the US that can help people in distress (or just want to buy or sell Real Estate. Please call me for a referral.
The CDPE education also enhances my ability to work with buyers who want to take advantage of deals in "distressed" property such as Short Sales and Bank Owned REO's and Foreclosures.
For more information about Pre-Foreclosure, Foreclosure, Short Sales and Loan Modifications, please call Dennis Smith at 760-436-0087.
Dennis@SanDiegoHomes4u.com

See my Short Sale and Foreclosure Avoidance Web Site at
http://HAFAShortSaleConsultant.com/



Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor®  DRE# 00476662
Certified Distressed Property Expert
Donna "Sunshine" Smith, SFR, Realtor®  DRE# 01249837

Short Sale, Foreclosure Resource Certified
 
Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

My Market Trends Report with graphs and charts for North Coastal San Diego will give you the Sales Statistics for the month and compare it with last year, by city!
http://www.sandiegohomes4u.com/RealEstateTrends.htm

You can view all available San Diego area homes for sale at http://www.sandiegohomes4u.com/MLS_Search.htm
You can search by address, by MLS number or by general criteria.

Providing quality Real Estate services in San Diego County.