Living In Santa Clarita

Tidbits on Santa Clarita

Archive for the tag “REO”

Housing Market is on fire!

The housing market has been on fire for the last 9 months actually! We have seen houses sold in hours for asking or above asking price. Sometimes for 50K over with all contingencies removed. Why would you do that you ask? Because the prices are going up and you will get equity or appreciation in your new home in months not years right now.

Most areas around the Los Angeles area are going up at least 1-2 % per month.

If you hare interested in buying in an area, contact me today and I will send you the information on how that area is doing right now.

Housing Market is on fire!  – click on the article to the left here and read more…

Michael

Is renting possible after a foreclosure?

With the short sale or foreclosure of homes being so prominent everywhere one has to wonder where do those people go. Most will move into a rental and then save to buy another place again down the road when time permits or because of hardship end up in a rental for a very long time.

The question I get most often about rentals is, “will an owner want or let us rent due to our credit from the foreclosure?”

The quick answer is in our current economic times there are a lot of people in this exact situation and most landlords are quite aware of that.

I handle rentals in Santa Clarita and the first thing we ask a prospective tenant when they apply is,  “Are you coming from a foreclosure?” If so why? nobody is perfect. There are bankruptcies every day as well.

Some folks are coming from a foreclosure on a  much larger mortgage payment then what the new rent is and need to downsize. As long as you show you can afford the payment, have a job, and show you are trustworthy, most landlords/tenants will rent to you.

So all in all there are landlords or owners out there renting to people who have foreclosed. Are they all, no. It will take longer to find a place to rent but you should find a place. Sometimes paying for 3-6 months in advance is a good way to show your sincerity in being a good tenant.


How much should I bid on an REO home?

In today’s market when I show homes to buyers more than 50% of the time there are short sales or REO’s (bank owned homes). The question that arises about 99 % of the time is “How much should I bid on an REO home?

There are a few variables to consider before I actually answer that question.

  • The first response I give and so should any agent in the business is “let’s check the comparables (comps) for that area.  This way we can see what others of like value have sold for. Key word here is “sold” for. Your bank is only going to lend you the money to buy a home based on the value or going rate at the time.
  • Besides the  average price of the “solds” another very important factor to look at is the average of what the house sold for vs what the list price was at. That way we can see how hot that pocket of homes is selling for right now vs another area 5 miles away in another part of Santa Clarita that might not be as hot. To me this is very important. If homes are selling for 95% of list price to sold price then we shouldn’t go in at 80% and not even get a counter offer. We stand a better chance at 92% .
  • Length of time on the market – a rule of thumb is, the longer it sits on the market the more flexibility there should be in the price. On the flip side,  a brand new listing should have less flexibility.
  • On a regular or standard sale you can go in with a punch list and a letter of why you are offering the lower price in hopes the seller will understand and be flexible with the price. With a bank owned sale the bank doesn’t care about that. Most banks if not all will give you very little or nothing in the way of concessions. They are looking solely on the comps.
With those few variables I can give an answer and then the buyer will decide what they want to do. If they really want the house, I mean they “want” this house vs just throwing out an offer and seeing what happens, then they will make an offer close to asking price.

Free Fast Easy Home Search Tool

This is my companies new Free Fast Easy Home Search Tool! I am so excited about this! Better then realtor.com ? In my opinion it is because it is “live” whereas realtor.com is delayed in their information.

This search tool has a great map search and then local area information.

No you don’t have to register, give me all your info, be locked to me forever – you can do it all privately if you want.  I don’t want to harass you…I want you to come to me as a client because you want to.

Give it a try today!

Click here!

Tenants be where about foreclosures

Michael Feicco – Dilbeck Real Living

As a tenant you need to be on the lookout about the home you are currently renting becoming a foreclosure, short sale or bank owned (REO).

You might not be able to identify this very easily. But if you happen to see letters to the landlord showing up at your home and they are from a bank or financial institution then I would a bit concerned.

You are obligated to pay rent if you have a contract still in place. What your obligations are as a renter really depends on  the contract you have with your landlord.  If a landlord had put into the contract that they have permission to sell the house while you live there then they can do so. Although the sale should not interfere with your lease agreement.

Most landlords will give you 30-60 days to move out. I’m not a lawyer and don’t play one on tv so I  can’t give legal advice on this issue, only help to the best of my knowledge.

I do suggest anyone with questions either contact legal advise and/or go on line to the state of CA  department of consumer affairs and print a copy of the renter landlord rules.

Click here for a direct link to the site!

I do have a copy at my office and refer to that quite often.

I hope this helps…

If you have any questions please feel free to contact me

Michael Feicco – Dilbeck Real Living

existing home sales jump 12%

Existing home sales jump 12%

Do you think the economy is getting better? I do. Slowly but surely. Just very very slowly…Read the above article for a better idea.

Now these are nationwide results and it is known that each region or area is different. I am also the first to say that when these nationwide results come out as being negative it doesn’t necessarily mean Santa Clarita. In most cases it’s not. IN this case however I think they both have the same results. Positive.

I have seen an increase in sales and should back that up with a statistic on my next post on real estate.

mortgage insurance premium deduction

Hear is some great information about the tax benefits using your mortgage insurance premium. This video comes to us courtesy of John Yang a mortgage planner here in Santa Clarita.

Short sale on my second mortgage?

With the short sale market being so popular right now I get questions from people all day long. I thought it would be a great idea to share those questions and the answers.

The question for this post is, “what happens to my second mortgage in this whole mess of a short sale?”

In order to be able to sell the house, all the liens against the property must be taken care of. Some people believe the second mortgage doesn’t have to be paid at all and that is not true.  The second are most likely to be the most difficult  in getting the short sale approved, and they have the ability to stop the short sale from happening altogether.

In most cases the second mortgage is assuming the largest loss in the short sale. While the first will end up with the biggest chunk of money, the second will usually end up with pennies, thus likely to make the short sale more difficult  The first mortgage is usually willing to pay the second mortgage what they demand in order to release their lien.

For example: Let’s say you have a first mortgage for $150,000 and a second mortgage for $50,000 and the home is now being sold at market value of $100,000. The first mortgage agrees to the short sale for $100,000 and agrees to pay the second $3,000 out of the $100,000 to release their lien. However, the second mortgage disagrees. They will not release their lien for a penny less than $5,000.  As you can see, this presents a shortage. This obstacle must be overcome in order to get to closing.

In an instance like this one, an experienced short sale negotiator will be able to work with your lien holders in order to get them to agree to a mutual payoff amount or to minimize the shortage by as much as possible to make it easier for the parties to absorb. However, it is very possible that the shortage cannot be completely eliminated and the buyer or seller will have to come up with extra funds to satisfy the demands of the second in order to get the closing. Sometimes a promissory note from the seller may suffice.

Liens beyond a second mortgage will follow a similar process.

When entering into a short sale with multiple lien holders, a situation like the one described above should be anticipated. Your best defense as a seller is to have an experienced, successful short sale agent working on your behalf.  This is no time for cousin Vinny who happens to have a real estate license to take a stab at trying out short sales. Choosing the right Realtor here is critical.”

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