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OC Real Estate News, Trends & What To Do This Weekend

Hi All & Happy Friday!
Lots of information for you today 🙂

My goal is to be your go-to real estate market professional whether you’re planning on buying, selling or staying in your home for 20 years!

I will be adding a remodel section to my emails so you can see the latest trends!

Buyers & Sellers ~ Sorry but I’m lumping you together this week with one message ~ Don’t be afraid of the Holidays 🙂

Plus side for buyers?  It will thin out your competition a bit!
Plus side for sellers?  You’ll be dealing with serious buyers!

Investors ~ This information is more pertinent for the flippers who buy, rehab & sell.  We’ve had a 90 day ‘flipping rule’ in effect for some time.  But due to the economy, the FHA has waived that rule this year.  We don’t know if they will waive it in 2013.

If you’re buying, rehabbing & selling within 90 days, be aware that buyer’s lenders will look at the profit percentage that you’re making and may require a 2nd appraisal. If your percentages are under 20% you’ll come under the waiver, if you’re over, there may be more hurdles to jump, especially with an FHA buyer.  Please call me for details.

Remodeling ~ Each email, I’ll focus on one area of your home for remodeling trends.  Today is your Kitchen.  This article touches on concealment of appliances, cabinets, countertops (including marble & butcher block inserts -which I LOVE) & lighting….here’s the link 🙂
http://www.kitchenremodelideas.org/kitchen-remodeling-trends-for-2012.html

Real Estate News!
There is a lot of talk about ‘Shadow Inventory’ which is the foreclosures that haven’t hit the market yet!
There doesn’t appear to be a reason to worry, as many writers speculated in the past months.  Here’s the link!
http://lansner.ocregister.com/2012/10/05/experts-say-shadow-homes-wont-crush-housing/166855/#more-166855

The Housing Market is Improvi ng!  And the recovery trend is solidifying!  Heres your link!
http://housingwire.com/content/nahbfirst-american-improving-market-index-sets-record-high

Finally ~ Things to do this weekend 🙂
You’ve got the Anaheim Auto Show at the Convention Center
Lita Ford at the Coach House in San Juan Cap
Tustin Tiller Days at Columbus Tustin Park
Christian Titus at the Brea Improv

I hope you all have a fantastic weekend!
And if I can answer ANY real estate que stions, I hope you call or email me!
Patti Gregory
714-398-1998
pattig503@yahoo.com
TNG Real Estate Consultants
DRE #01182154
And thank you for taking a moment to read my Real Estate Emails, it’s very much appreciated

Orange County Real Estate Info 9.29.12

There’s some exciting Real Estate news this week for Buyers and Sellers!

SELLERS ~ Right now is an opportune time to list your home!  With the Holidays just around the corner, only serious buyers will be home shopping.  Other than distressed (foreclosures & short sales) properties, buyers will have very limited choices which will make your home stand out!

If you’re looking to move up, homes are expected to appreciate 15% between now and 2016.  This is a great time to buy the dream home on your wish list.  Interest rates are expected to stay low well into 2014.  If you wait to move into a higher priced home it will end up costing you more in do wn payment and your mortgage.

If you choose to list with me, and I hope you do, I assure you, I can get your home sold quickly with little interruption to your privacy and lifestyle.

BUYERS ~ As of Sept, there were 13,205 homes purchased daily across the country.  31% were first time buyers, 18% were investors & 27% were cash buyers.  Personally, I’m very glad to see the first time buyer numbers so high!  I work with a lot of FT Buyers and I have a great lender that has First Time Buyer grants & programs available to help with the down payment and closing costs.

Think about if you’re willing to get your hands dirty and purchase a distressed home or if you prefer a home that’s move in ready.  Get your wish list together but remember to be flexible, you’re likely to get 80% of your wish list!  Then talk to a lender (I can provide recommendations or use someone you k now or a friend/family member has used and suggests) and get your price point working with your budget.  Then call me and we’ll get out there and find you a home!

MARKET UPDATES ~ According to CNN Money on Sept 26th, housing sales are steady but prices rose sharply.
“Even though this report did not show a significant headline increase, the persistent low levels of inventories and increasing prices are encouraging signs and in line with our view of a broader housing recovery,” said Cooper Howes, an economist with Barclays Research.”
“NEW YORK (CNNMoney) — In another sign of a turnaround in the long-battered real estate market, average home prices rebounded in July to the same level as they were nine years ago.”

This is great news for anyone in the market to buy or sell a home!

If I can help with any of your real estate needs, please call or email me!  I’m ready when you are.
Hope you have a great weekend!
Patti
714-398-1998
pattig503@yahoo.com
TNG Real Estate Consultants
DRE #01182154

 

 

Thinking of a Vacation or Retirement Home? Buy It Now

When the economy was exploding in the early 2000s, many of us began to dream about purchasing that vacation home on the lake or securing a home in a more appropriate location for our retirement years. However, with the booming

via Thinking of a Vacation or Retirement Home? Buy It Now.

Upcoming So Cal freeway upgrades!


Upcoming Freeway Projects:
OC ~ widening of the 405 from the 73…3-6 yrs out but u can get info at octa.net/i-405/ipo.aspx

LA ~ is converting existing carpool lanes into Metro Express Lanes on the I-10 E of downtown LA & the i-100 Harbor Freeway to the South Bay

South County ~ Extending the 241 Toll Rd 5 miles – see thetollroads.com/whatshappening/tesoro_extension.php

Riverside ~ The are going to widen the 91 (finally) by adding 2 express lanes & a regular lane from OC thru Corona…s/b open by 2017

New Anti-Deficiency Protection for Refinance Loans Made After January 1, 2013

New Anti-Deficiency Protection for Refinance Loans Made After January 1, 2013

Starting January 1, 2013, a new California law will protect homeowners who default on their refinance loans from personal liability for any deficiency following foreclosure. Existing anti-deficiency law protects a borrower from personal liability for the difference between the principal balance and what the lender receives at foreclosure if the loan is a purchase money loan secured by an owner-occupied property with one-to-four residential units. The new law, Senate Bill 1069, extends that anti-deficiency protection to include any loan used to refinance the purchase money loan, plus any loan fees, costs, and related expenses for the refinance. The anti-deficiency protection, however, does not extend to any “cash out” in a refinance, which is when the lender advances new principal not applied to any obligation owed under the purchase money loan. This new law does not affect the other anti-deficiency protections for non-judicial foreclosures (or trustee’s sales) and seller financing.

This new law only applies to refinance loans or other credit transactions used to refinance a purchase money loan, or subsequent refinances of a purchase money loan, that are executed on or after January 1, 2013. For purposes of this law, any payment of principal shall be deemed to be applied first to the principal balance of the purchase money loan, and then to the principal balance of any new advance and interest payments shall be applied to any interest due and owing.

C.A.R. supported Senate Bill 1069 in the legislative process as many homeowners do not realize that, by refinancing, they lose their anti-deficiency protection for a purchase money loan. Senate Bill 1069 is similar to Senate Bill 1178 sponsored by C.A.R. in 2010, but vetoed by Governor Schwarzenegger. The full text of the law is available at www.leginfo.ca.gov.

New Anti-Deficiency Protection for Refinance Loans Made After January 1, 2013

New Anti-Deficiency Protection for Refinance Loans Made After January 1, 2013

Starting January 1, 2013, a new California law will protect homeowners who default on their refinance loans from personal liability for any deficiency following foreclosure. Existing anti-deficiency law protects a borrower from personal liability for the difference between the principal balance and what the lender receives at foreclosure if the loan is a purchase money loan secured by an owner-occupied property with one-to-four residential units. The new law, Senate Bill 1069, extends that anti-deficiency protection to include any loan used to refinance the purchase money loan, plus any loan fees, costs, and related expenses for the refinance. The anti-deficiency protection, however, does not extend to any “cash out” in a refinance, which is when the lender advances new principal not applied to any obligation owed under the purchase money loan. This new law does not affect the other anti-deficiency protections for non-judicial foreclosures (or trustee’s sales) and seller financing.

This new law only applies to refinance loans or other credit transactions used to refinance a purchase money loan, or subsequent refinances of a purchase money loan, that are executed on or after January 1, 2013. For purposes of this law, any payment of principal shall be deemed to be applied first to the principal balance of the purchase money loan, and then to the principal balance of any new advance and interest payments shall be applied to any interest due and owing.

C.A.R. supported Senate Bill 1069 in the legislative process as many homeowners do not realize that, by refinancing, they lose their anti-deficiency protection for a purchase money loan. Senate Bill 1069 is similar to Senate Bill 1178 sponsored by C.A.R. in 2010, but vetoed by Governor Schwarzenegger. The full text of the law is available at www.leginfo.ca.gov.

All About Credit Scores

All About Credit Scores
Important Information You Need to Know
By Steve White, President and CEO of American Credit

All About Credit Scores - Important Information You Need to Know - By Steve White, President and CEO of American Credit

 

“Big brother is watching you.” Even if you haven’t read George Orwell’s classic novel 1984, you’ve probably heard that famous line from the book. If Orwell was alive today and working on a sequel, perhaps he would write: “Big brother is watching your credit score.”

The Importance of Credit Scores
Credit scores have assumed immense importance in our financial lives and many – perhaps the majority of consumers – don’t even realize it. Never before have our financial transactions been so closely monitored by the credit bureaus and used to determine our credit risk based on the credit score that is calculated.

A credit score affects how much interest we pay on mortgages, consumer loans, credit cards and more – to the extent that the difference between a good score and a bad one can be tens or even hundreds of thousands of dollars over our adult lives.

That’s pretty staggering. But it doesn’t stop there.

A credit score can affect your ability to get a job, a cell phone, rent an apartment, how much you pay for insurance or even opening a bank account. It’s been described as your financial DNA.

All of which is a strong argument for becoming an educated consumer on this subject. But for too many folks ignorance is bliss until reality hits home with the discovery that a huge barrier – in the form of a bad credit score – lies in front of buying a home or a car, or finding a job.

For most consumers, the credit scoring system is as much a mystery as a Sherlock Holmes novel. There’s so much confusing information out there – the bad mixed in with the good – that it’s hard sorting the wheat from the chaff.

So let’s help you.

Types of Credit Scores
FACT: All credit scores are not created equal.
FACT: The credit score you should pay attention to is the FICO® score.

There are all kinds of promotions on the internet offering free credit scores, credit monitoring and other such services. The key to remember is that the score used by major lenders and about 90 of the top 100 financial institutions in the U.S. is the FICO® score.

It’s the global standard for measuring credit risk, based on a formula developed by Fair Isaac Corporation. FICO® scores range from 300 to 850, the higher the better. Other companies are selling credit scores based on their own models with different scoring ranges.

The best place to get your FICO® score is straight from the company at myFICO.com or if you have applied for a loan ask your lender to give it to you. Under federal legislation, every credit bureau is required to give consumers one free credit report per year (visit annualcreditreport.com), but not a free credit score. Keep in the mind the major credit bureaus sell credit scores based on models that are different than FICO®. The closest to FICO® of the three is Equifax. TransUnion and Experian sell the Vantage Score, with a range of 501-980.

The Importance of Checking Your Credit Score
Lenders will obtain your FICO® score based on your credit reports from each of the big three bureaus and use these scores to determine your credit risk. Your credit reports may vary somewhat with each bureau as they may not have identical data and sometimes there are errors on your credit reports that can affect your credit score.

Unless you find these errors and take action to remove them from your credit reports, they will stay there.

That’s why checking your credit reports at least once a year is a wise move because you never know when you might have to borrow money and it’s best to be prepared. This is vital if you aim to buy a house in the near future.

If you discover your credit score is low, it can take months to raise it.

Buying a home is probably the most expensive purchase that you will make in your lifetime and securing the best interest rate will make a huge difference over the life of the mortgage. Here is a recent example that illustrates how credit score impacted the interest rate available on a 30-year fixed rate mortgage:

Credit Score
740+
720-739
700-719
680-699
660-679
640-659
620-639
<620
Interest Rate
3.750%
3.875%
3.990%
4.125%
4.250%
4.375%
4.500% (options are very limited for people with scores in this range)
4.750% (and likely not able to be done)

Other Ways Your Credit Score Can Impact You
Almost everyone uses credit cards today and you can pay through the nose with interest charges. To get the best terms, you need a high credit score.

What if you just need to get an apartment? A bad credit score can get you turned down or force you to pay more money up front to the landlord.

Looking for a job? Unless you are in one of only seven states that restrict the use of credit scores to screen job applicants, you could be out of luck. Competition for jobs in today’s economy has never been tougher, so gain any advantage you can by having a high credit score. The states that restrict this practice – they consider it discriminatory – are California, Hawaii, Oregon, Connecticut, Illinois, Maryland and Washington.

CoreLogic
In addition to credit card records, consumer loan and mortgage payments, and collections, charge-offs and bankruptcies are also tracked by the major credit bureaus. Many of our financial dealings that used to go under the radar are now being captured by a fourth credit bureau: CoreLogic.

CoreLogic is tracking evictions, child support payments, payday loan applications and property tax liens. It’s being offered to mortgage and home equity lenders as an additional tool to screen applicants for credit risk.

Maintaining a Good Credit Score
How do you maintain a good credit score? The single greatest factor is payment history, which makes up 35 percent of a credit score. So pay those bills on time.

Debt load is the next most important factor, making up 30 percent of a credit score. Try to keep credit balances at zero but if that’s not possible try to keep the balance owing at no more than 30 percent.

The other factors include length of credit history, which makes up15 percent of your credit score, types of credit (10 percent), and inquiries for new credit (also 10 percent).

A few pitfalls to avoid include:

  • Don’t close an inactive credit card account as it could raise your overall debt-to-credit ratio and lower your credit score.
  • Don’t co-sign a loan unless you are prepared to risk lowering your credit score should the other person default.
  • Don’t max out or exceed credit card limits.

The Bottom Line
Understanding your credit score can seem daunting, but it doesn’t have to be. If you have any questions about your personal situation, contact the professional who supplied you with this month’s issue of YOU Magazine.

Steve White is president and CEO of American Credit, a company that helps consumers optimize credit scores to qualify for mortgages, loans and credit cards at the best interest rates. American Credit uses a proprietary system based on federal law to ensure that clients’ rights are protected and enforced. A veteran of the first Gulf War, Steve founded the Santa Monica, California based company 9 years ago.