Fullerton Housing Looks Promising

Fullerton Realtor Diego Loya

Home Living Report – Fullerton, CA Real Estate News by Diego Loya

The Fullerton Real Estate market in 2013 had some big gains. Homes increased to it’s highest levels since 2007. The same trend will continue into 2014. As long as the hunger from buyers to buy up homes stays strong, home sellers will reap the benefits of a strong market and growing real estate prices.

It’s tempting to confuse market normalization with a possible slowdown. But those equipped with high-quality MLS data know better. As mortgage delinquencies fade, banks are listing bargain-priced product less often. That
means investor activity – which accounts for a substantial market share – is moderating. That’s not to say that rates and prices aren’t still attractive to owner occupant buyers. They most certainly are. Some short-term volatility is expected as part of a normal market readjustment.

  • New Listings were down 13 percent for single family homes and 25 percent for condos and townhome properties.
  • Pending Sales decreased 16.9 percent for single family homes and up 31.8 percent for townhouse-condo properties.
  • The Median Sales Price was up 21.4 percent to $563,500 for single family homes and down 12.3 percent to $315,000 for condos and townhome properties.
  • Months Supply of  Inventory was a positive up 4.5 percent for single-family homes but down 22.2 percent for townhouse-condo units.

The economy has more or less shuffled along, despite some climate-induced surprises to job growth and new construction. There is no denying the fact that we’ve now seen 47 straight months of private job growth, creating 8.5 million new payrolls. There’s still work to be done. Thankfully, with such low inventory levels, many builders are bullish on new construction. The spring market is budding, and it should be an interesting one.

Want to Sell Your Home?

Contact me now and you’ll receive a private consultation at your home. No obligation. 714.989.6040  diego@ehomeliving.com .  [gravityform id=”2″ name=”Send us Your Questions and Comments” title=”false” description=”false”]

*Data from PWR and includes Orange County and some surrounding areas.

Current Fullerton Homes For Sale

(Contact us a specific type of property you are looking for)

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Foreclosures Fall In Brea and Orange County

Short Sale Questions AnsweredRealtyTrac recently listed those cities with the most foreclosures anticipated for 2013. Not one California location made the list, even those counties which had been amongst the foreclosure leaders in years past such as Riverside and San Bernardino counties. Compared to states like Florida, which had eight listings on the report, this is a landmark achievement and is another strong signal that the California real estate mark is about to experience a serious resurgence. It prompted the vice president of the reporting company, Daren Blomquist, to say, “What’s happening is California has been at the forefront of the crisis for years, but now, it’s also leading the way out.”

The locales that made the list had experienced at least a 20% increase in the volume of foreclosures. A number of factors has contributed to California’s improvement, such as increased short sales, a blossoming job market and an overall increase in demand. The short sales are a particular boon to the inventory issue as it allows distressed owners to sell properties at less than what is owed on the mortgage. And despite the decrease in number of distressed properties, the fact that demand is still increasing is most likely the most positive sign of all. It means that buyers are not just looking for bargain priced properties but are targeting cities such as Brea and Fullerton as sound long-term property investments.

Of course, this comes as no surprise to those of us who call Orange County and cities like Brea home. It is an ideal location not just for speculative property purchases but for relocation to raise a family and pursue new career opportunities. Brea is a city of perpetual opportunity and renewal. It is the reason why I have spent so many years helping so many families purchase a home in Brea and nearby communities such as Fullerton.

If these features and positive forecasts sound like appealing aspects of a community you would like to join, just drop me a line so we can start you on your search for the perfect Brea home.

City of Brea Real Estate

Personalize your search and have access to all homes for sale in the City of Brea within the Multiple Listing Service  HERE

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Know Your Options – Fannie Mae

Fannie Mae Foreclosure HelpThese days you have to know your options. If your buying a home you have to know your options. If your selling your home, you need to know your options. If you are trying to loan mod or short sale, well you know the answer. Know your options!

Luckily Fannie Mae has created a web site that answers a lot of questions if you have a Fannie Mae loan. They will explain options to stay in your home or options to leave your home. They also offer in person or telephone support to answer your questions.

So your probably thinking, “Do I have a Fannie Mae loan?” Well here’s how you can find out. Go to Fannie Mae Lookup: www.fanniemae.com/loanlookup and see if your mortgage is owned by Fannie Mae. All you do is input your address and answer a couple of questions and it will tell you on the spot if you have a Fannie Mae loan.

Next thing you want to do is is visit Know Your Options: www.knowyouroptions.com by Fannie Mae and read all the valuable information on how they can help you resolve your issue.

If you have questions, contact us. We’re here to help.

 

Loan Modifications Continue

Loan Modifications Surpass One Million Mark for 2010

09/01/2010 By: Carrie Bay

The industry has completed 1.13 million permanent loan modifications for at-risk homeowners so far in 2010, according to data released Wednesday by HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit housing counselors.

For the month of July alone, servicers completed more than 120,000 proprietary loan modifications for homeowners. It was the second straight month that proprietary mods topped the 120K mark. As reported by Treasury Department, mortgage servicers also completed 36,695 permanent mods through the government’s Home Affordable Modification Program (HAMP) in July.

If a borrower does not qualify for HAMP, mortgage servicers determine eligibility for a proprietary loan modification that may help the homeowner stay in their home. HOPE NOW reports that 86 percent of proprietary modifications completed in July reduced the monthly payment for homeowners in order to make them more sustainable.

The industry group also reports that since January of this year, mortgage delinquencies of 60 days or more past due have dropped 20 percent, as of July 2010. HOPE NOW’s data show that 60-plus-days delinquencies decreased from 3,487,783 in June to 3,298,236 in July, a drop of 5 percent over the one-month period.

A number of analysts have suggested that recent drops in delinquency stats are simply the byproduct of an increase in foreclosures by servicers as they work through the huge backlog of defaulted mortgages and push cases through the pipeline.

HOPE NOW’s data seems to support this assumption. Along with the slight month-to-month drop in delinquencies, the organization also reported that foreclosure starts jumped 22 percent in July and completed foreclosure sales rose 12 percent. July’s foreclosure starts outpaced loan mods during the month by nearly 90 percent.

Foreclosures were initiated on 226,664 homes during the month of July, up from 186,395 in June, according to HOPE NOW. Sales were finalized on 97,951 foreclosed homes in July, compared to 87,842 the month prior.

Faith Schwartz, senior advisor for HOPE NOW, said, “As noted, we did see an increase in foreclosure starts and sales, despite the unprecedented efforts of the industry, along with its government and non-profit partners to offer many alternatives to foreclosure. We believe this is a function of borrowers moving through the pipeline of all eligible program offerings (government and private industry) to exhaust all alternatives.”

Schwartz added, “The increase in foreclosures is also a reflection of the continued challenges facing the economy, particularly the level of unemployment nationwide. We remain hopeful that as jobs start to come back the housing market will stabilize.”

Since HOPE NOW initiated survey data reporting in July 2007, the organization says more than 3.5 million homeowners have saved their homes through permanent loan modifications. This total reflects the combination of proprietary loan modifications plus those completed under HAMP.

Combined with other mortgage options, such as repayment plans and forbearance, the mortgage industry has assisted almost 10.4 million homeowners since HOPE NOW was formed in 2007.

Courtesy of DS News

What are Your Foreclosure Options?

When a person falls behind on their mortgage, there are options available to the borrower.

Options include Loan Modifications, Reorganization of debt through Bankruptcy
Protection, Short-Sales, Deed-in-Lieu of Foreclosure, or an outright sale of your property.
Naturally more options are available to the person who seeks immediate legal advice.

Here are a few options available to the Borrower who is struggling to make mortgage
payments:
1. Loan Modifications: If your interest rate is above six (6%) or if you are having
difficulty paying your loan, you should immediately call your lender and ask them about
their loan modification programs. There may be several loan modification programs
available to you. For some programs you do not have to be behind in your mortgage, and
the property does not have to be your primary residence. Many lenders are also
modifying investment properties.
2. Bankruptcy Protection. You can reorganize all of your debt including your
mortgage by filing for bankruptcy protection. Chapter 13 Protection allows a debtor to
reorganize their debt by giving them three to five years to satisfy their mortgage arrears
and other debt. Some debts may even be discharged altogether. The disadvantage is that
during this “repayment period” the debtor is now not only paying the regular monthly
mortgage payment, they are also making an additional payment each month towards the
reduction of their arrears. The advantage however is that during this period the bank
cannot continue to proceed with their foreclosure case. You can keep the house so long
as you keep current with your mortgage payments and the payment for the arrears. You
may also be able to avoid paying any second mortgage or line of credit completely
depending upon the lack of equity in the property.
If you are current on your loan, you may file for Chapter 7 Bankruptcy Protection and
still keep your house depending upon the amount of equity in the property. You can then
seek to have your unsecured debt (i.e. credit cards, utility bills, etc.) discharged. You
can also seek to have any second mortgages discharged again depending upon the
property’s equity.
3. Short-Sales: You can contact your lender to discuss a reduced balance to satisfy your
mortgage to enable you to sell your house. This option is known as a “Short-Sale”. In
essence if you believe that the balance on your mortgage exceeds the value of your house,
some banks will accept less than the actual balance to satisfy the mortgage. Usually
banks require that you send them a copy of a recent appraisal report showing the value of
the house and a fully executed Contract of Sale among other documents. (There may be
serious tax consequences for short-sales for investment properties which we will discuss
in the future.)
4. Sell House at Market Value. You can list your house with a realtor and sell the
house at market value. If you realize that the payments are simply too high, you can sell
your house thereby recouping any equity that you have in your house. The earlier you
make the decision to sell, the more control you have over the price, the time that you
need to move, and the amount of equity that you recoup.
3. All-Cash, As-Is Sales. You can have an investor purchase your property. The
advantage to selling to a REPUTABLE investor is that a closing of title could take place
within a few weeks. Also usually the purchase is done on an “all-cash” basis. You also
should not have to worry about making any repairs. You should demand that the investor
purchases the house completely “as-is”. Some investors will even purchase properties
with occupants. You, however, must negotiate a purchase price and any other terms that
make you comfortable. The disadvantage is that usually the purchase price is slightly
below market value due to time constraints and the nature of the sale.
4. Deed-in-Lieu-of-Foreclosure. When you fall behind on your mortgage, you can ask
your lender to accept title to your house instead of going through the foreclosure process.
Obviously you would only entertain this option when there is absolutely no equity in the
property. An advantage in this option is that the lender may accept the transfer of
ownership of the house in full satisfaction of the mortgage. A disadvantage is that most
times the lender has several conditions to the transfer (i.e., the house must be vacant).
Also there may be tax consequences resulting from this transfer which we will explore in
the future.
You must understand that simply because you are behind on your mortgage payments or
in foreclosure does not mean you cannot favorably resolve this situation. The key is to
seek advice immediately after missing a few mortgage payments in order to explore
your options. The earlier one seeks proper legal advice, the more options they have
available to them. Remember, you do have options in foreclosure.

California Approves Tax Forgiveness on Short Sales

Leading the Way…® in Real Estate Law

NO MORE STATE TAX ON FORGIVEN DEBT

“Qualified principal residence” indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence.  It includes both first and second trust deeds.  It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012.  Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions.  Most notably, taxpayers who are bankrupt are exempt from debt relief income tax.  Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board’s Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service’s Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage.  The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

Click Here for the Full Story

Short-Sale Incentives Start April 5th

Short-Sale Incentives Start April 5th

Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer.

That’s the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.

Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.

Source: The Wall Street Journal

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