San Diego Real Estate - Foreclosure News

San Diego Short Sale Market -- What You Need to Know

2010-01-08T14:36:00.000-08:00

The state of the short sale homes in San Diego has been changing over the past few months. A short sale is a sale in which the homeowner owes more on the home than the homes is worth in the current market. The bank agrees to take a loss on the loan (‘short’ the amount owed) and allows the owner to attempt a sale. This is normally an alternative or precursor to a foreclosure. In this situation, when an offer is made on a property, both the homeowner and the bank need to approve the submitted offer. Many times, a homeowner will accept the offer, but the bank may take several months to respond. In this situation, the property enters into a Contingent status. It is no longer available since it has an accepted offer, but not yet in escrow since the offer is contingent upon the bank’s approval. The bank does not always approve the offer that the homeowner may have accepted. The bank may not approve any offer submitted.

The approval rate of short sales has been fluctuating greatly offer the past year. Over the past 6 months, approximately 30% of short sales were successful (the bank and homeowner both accepted the offer and the property closed escrow). Those approval rates appear to be trending even higher, as well. Units sold appear to be rising at about 10% per month (probably the same number of listings taken but since a higher number get approved the unit sold count is rising).

In conducting this study, two major areas were evaluated: South Bay and the “Metro” Areas which include central areas such as Mission Valley, North Park, Hillcrest, Mission Hills, City Heights, Logan Heights, Linda Vista, Clairemont, Downtown, etc. This evaluation is only of single family residences. No condos or townhouses were evaluated in this study.

Over the last 3 months, the South Bay is now selling 96 properties per month. There are 942 active, contingent and pending listings in the South Bay with a burnrate (number of units sold per month) of about 100 per month (and rising). Of these 942 properties, only 186 are Active status and available to receive offers. The entire MLS has 1009 short sales homes and 4177 Non-Short Sales. Roughly 25% of the single family homes for sale in San Diego are short sales.

Of the homes that are currently active and available in the San Diego Market, there are 1500 houses priced over $1M ($1,000,000). The burnrate is only 100 per month – over 15 months inventory. (Still pretty high) Many sellers will likely take their home off the market during the winter. There are 3104 houses priced over $500 (inclusive of the $1M). The burnrate is 586 per month – 5.3 months inventory. Surprisingly low, actually.

There are 576 Actives priced over $350 that are short sales. The burnrate is 178 per month – only 3.3 months inventory. VERY VERY tight market. In the same time frame, non-short sales outpaced the short sales at a rate of over 4-1 (The burnrate in the same period for non-short sales was 898 per month!).

The market for bank owned properties is more difficult to track than short sales, however the numbers look something like this: there are currently approximately 441 Active REOs (bank owned properties), 746 Contingent and Pending REO properties, and 3265 Sold REO properties over the last 6 months (544 Solds per month burnrate) – Less than 1 month inventory of bank owned. No wonder buyers and their agents always feel like there’s nothing to buy. Only 252 of the 441 Actives are under $350 (available to the typical buyer in the market). Of the 252 only 81 are offering financing for FHA and/or VA – less than 1-in-3.

If you are shopping for a home in 2010, keep these numbers in mind and don’t be afraid to be aggressive. The market is tight, but the incentives for buyers, including tax credits and low interest rates, make it well worth it!

San Diego House Hunting
www.sdhousehunting.com
619-497-1834

Things are getting worse less quickly than before. And because of this, things are getting better.

2009-08-19T15:09:00.000-07:00

Things are Getting Worse Less Quickly than Before; and Because of this, things are getting better.

Here’s some good news: “Things are getting worse less quickly than before. And because of this, things are getting better.” What an economic outlook!!??

http://news.yahoo.com/s/ap/20090817/ap_on_bi_ge/transunion_mortgage_deliquencies_1

Foreclosures and mortgage defaults are worse than ever. The rate of mortgage defaults is higher this month than last month. The rate of change between this month and last is not as bad as prior months. That’s reason to celebrate that the market has bottomed? This defies common sense.

Let’s say you go to Las Vegas and you bet $1000 and lose it. Then you bet $500 and lost that. Then you turn to your friend and say, “You know, since I just lost $500, that’s reason to be cautiously optimistic – I’m not losing as fast as I used to”.

Expect higher interest rates, more foreclosures, and more loss mitigation loan modifications (which only delay the inevitability of a foreclosure because they don’t reduce principal) through the end of this year and well into next year.

Jeremy Katz, Broker
San Diego House Hunting &
San Diego Commercial REO
http://www.SDHouseHunting.com
Member, NRBA (National REO Brokers Association)
619-497-1834 Office
7840 Mission Center Court #201
San Diego, CA 92108

Use a Craigslist Clone to Find Homes in San Diego

2009-08-07T11:03:00.000-07:00

We're pleased to announce the availability of a new tool to search, and more importantly FIND, homes for sale in San Diego.

Try it here: http://www.sdhousehunting.com/tools/search/search.php

Do you use Craigslist to research available homes in San Diego? If you do, you'll really love our new tool. The main features of the new tool:
- Search for homes countywide without registration or email confirmation
- ALL Homes allowed to be published appear - doesn't rely on any agent to input the advertisement!
- Search all keywords contained in agent's comments
- No advertising. Just houses. No Spam or other annoying miscategorized advertisements.
- Automatically remove Short Sales from your search results.
- Search by zipcode, streetname or other key characteristics in a single search box (EASY!)
- Properties organized by regional areas - just like Craigslist ads!
- One click to find homes similar to the one you are reviewing quickly and easily.
- Easy access to lists of homes that meet your criteria.

We hope you'll give it a try and use it to find your dream home or next investment!

Your Questions Answered: Timelines? Cancellations?

2009-06-24T11:43:00.000-07:00

Buyer's Questions Answered:
What would the time line be for a purchase, possibly with a downpayment that is a gift, and what is involved with moving forward and canceling if we discover something less than favorable?

The process is to get pre-approved, interview agents, and then hire the one you like best (good service, ethical, etc). From there, you go out and find the best one for you and make an offer. Takes a few days to get a response. It costs you nothing to use our services – our commission is paid by the seller. You really have to hire someone though because without that you won’t get a strong commitment of service like we offer. Hiring them means a simple one page agreement to use them as your agent for the homes that they introduce for you.

Once you find the one that’s right for you, you start an escrow and begin to review all the background and documentation on a home. In escrow you can back out if you find out something really bad about a place or discover through an inspection that something’s really not for you (whatever that may be). You only make an offer if you’re really excited about a place and can envision living and enjoying it. You get your deposit back (1% of the purchase price) if you have to back out. You may have already spent some money “trying” to buy the house however (for example the costs of the inspection and appraisal are non-refundable). You want to find out during escrow if your neighbor is an aspiring rockstar drummer!

Bank owned properties are a bit slow to process the purchase contract (compared to a normal or what we like to call “natural” seller) but you’re usually going to get a great bargain, so you have to bear that in mind. They will tell you if you “won” the negotiations but then it can take about 10 days to get the contract from them so your loan officer can begin to process your loan application. Your timeline starts when the seller signs the contract. Your agent should manage the timeline properly keeping you aware of rights, duties and obligations the entire time. Where you have options, your agent should explain them thoroughly. In cases where there aren’t choices to be made, your agent should still keep you informed of how the transaction is proceeding. We buy and sell homes every day so you don’t need to know every excruciating detail if you don’t want or care to know. The more you do want to know, however, you need to have an agent that can advise you properly and insure that you feel comfortable and confident about your purchase.

Don’t give notice on your apartment until well into the escrow. You may have a bit of “overlap” of paying for both, but you need that to make sure everything goes right and that you’re not homeless. You can use any extra time to make sure the new place is ready for move-in and that the old is properly cleaned out and ready to get your deposit back. Also remember that when you own a property you “live first and then pay” versus in a rental situation you “pay rent first and then you live” – meaning you actually pay your mortgage in arrears. As such, you “skip” a payment when switching from renting to owning!

Hope this was helpful and feel free to email info@sdhousehunting.com if you have any questions of your own!

Jeremy Katz, Broker
San Diego House Hunting &
San Diego Commercial REO
http://www.SDHouseHunting.com
Member, NRBA (National REO Brokers Association)
619-497-1834 Office

Secrets Lenders Don't Want you to Know Part 3

2009-06-23T12:26:00.000-07:00

And now for the Conclusion of our three part series on the most importance things that lenders don't want you to know. . . Follow these key steps to be in the know when you buy your home.

8. Don’t Wait for the Bottom of the Market- The odds of your hitting the bottom of your market are about like the odds of you hitting your state lotto! You will almost never hit the bottom of a market. And trying to time it exactly right is often costly. You’re better off simply negotiating the best rate and terms you can at the time you find a property. If interest rates go down, you can refinance. This is a much better approach because you won’t miss out on the property you’ve spent so much time locating.

9. Be Honest With Your Lender- Your lender wants to help you with your loan. The only time they get paid is when you get approved. The more information (good or bad) you provide your lender, the easier it will be for them to get an approval. It helps them present the loan in the best light. This in turn helps the loan get the highest approval rating.

10. Become Completely Educated- Pick your lender’s brain. Lenders will teach you all about your various options, even if you haven’t found the right property yet. They will be very patient with you while you are looking, especially if you have aligned yourself with the right agent. They understand all the up-front work will pay off in future business. Your agent will then continue to refer people to the courteous and service-minded lender on down the line.

11. Get Pre-qualified- Lenders will provide you with a certificate of pre-qualification. By getting pre-qualified, you know exactly what financial parameters to stay within. Your agent and lender will consult with you and help you get qualified for the loan that best fits your needs. Many times, they are able to get you a larger loan than you may have thought possible.

I hope you found the ideas valuable and if there is ever any way I can be of service to you or anyone you care about, please contact us.

Thank you!

San Diego House Hunting SEARCH THE MLS LIKE A
619-497-1834 REALTOR®!

Secrets Lenders Don’t Want You to Know! Part 2

2009-06-22T15:24:00.000-07:00

Continued . .

4. Demand Service- While there may not be a difference between a bank, savings and loan, or a mortgage broker when it comes to the competitiveness of their loan rates, the difference will lie in the service they provide. It is their job to serve you! You want to get the loan approved and move into your new home as quickly as possible, but don’t overlook the fact that you are the one spending the money and they are the ones who should cater to your needs. Don’t let the process become so intimidating that you lose that understanding.

5. Stay in Complete Touch- You should receive a written report from your lender concerning every step. This will ensure that no details are overlooked and there will be no surprises.

6. Negotiate a Flexible Loan- Don’t just accept the terms they lay down in front of you. Lenders are in the business of loaning money and they want your business. Make sure you examine every option available to you. Make sure that you understand each options benefits and possible drawbacks.

Be completely honest with your lender. Remember they get paid only if you get approved, and complete honesty helps them present the loan in the best light.

7. Don’t Give Up on the First No- Initial decisions are not always final decisions. Going to a higher authority can sometimes get you the loan, but do so with the assistance and compliance of your lender and agent. Many times, special circumstances, when explained properly to the person in charge, will win you the loan.

Coming soon . . the conclusion on our three part series on the Secrets that Lenders Don't Want You to Know!

Secrets Lenders Don’t Want You to Know! Part 1

2009-06-19T15:13:00.000-07:00

Secrets Lenders Don’t Want You to Know!Read This 11-Point Report Before You Sign Anything!

The right decisions when signing your home mortgage can mean thousands of dollars difference in interest paid. There are very important considerations to evaluate before you commit to a 15 or 30 year note. Before making a commitment, doesn’t it make sense to know as much as possible about the financing of our home? Take the time to thoroughly investigate all of your options!

Negotiate a flexible loan. Some lenders will let you go from a variable to a fixed loan if rates start to go up.

Unbelievably many of us sign the first mortgage placed in front of us. Typically the excitement of the new home purchase reduces the mortgage to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars. Your real estate professional has established relationships with the top lenders in your area. By aligning yourself with a professional agent you ensure all the financial steps are taken care of properly and economically.

1. Utilize a Lender With Established Ties to an Agent- Lenders are much more flexible with the real estate agents who have done business with them previously. Their relationship establishes them as a team member. The lender and agent work effectively together. That’s why a good agent can make substantial difference in setting up the most economical financing. And the right financing can, literally, save you tens of thousands of dollars over the life of your loan!

2. Don’t Attempt Paperwork Alone- All the paperwork required to complete the purchase of a home can be quite intimidating and frustrating for a home buyer. Make sure you have your lender help you with all the paperwork. Get help from your team, your lender and agent. Their expertise will help alleviate the stress and it will prove to be invaluable before you sign your mortgage.

3. Look at All Your Options- Make sure you see at least 3 loan programs for your mortgage. Lenders have at least 5-7 programs and should work with you and your agent on deciding what is best for your circumstances. Evaluate all your options. After all, it’s your money you’re spending - not theirs!

Coming Soon: Part 2 -Points 4-7 to Arm Yourself with Knowledge.

2 Most Common First Time Buyer Questions Answered

2009-06-17T14:20:00.000-07:00

How much does the amount for the down payment affect the loan percentage?

If the loan amount eceeds $417,000 then you’re looking at a higher rate (jumbo loan).

Rates are competitive regardless of FHA (3.5% down plus monthly mortgage insurance), VA (no money down), and convention (minimum 10%, better 20% down). Conventional is best when competing for a home right now – most homes are being sold with multiple offers perhaps 10%+ above asking price. There are fewer homes on the market now than anytime in the last 10 years! There are only 2300 homes on the market now priced below $300,000.

Use 5.75% as your estimate for now until you have your pre-approval in hand. Interest rates are tending to rise rather than stay the same or fall.

What do you need to tell me what I qualify for and how much the payment would be?

Qualifying is easy. We recommend Wells Fargo, Chase, and Prospect Mortgage. In addition to running credit, they will want a recent paystub. To get pre-approved you’ll need tax returns and verifiable assets (bank statements). Let me know and I will be glad to provide a referral. You can use whoever you want to finance the purchase of your home.

Assuming you know your credit is good and you can document your income properly, and you don’t have lots of other debt, estimate your monthly payment as 35% of your monthly gross pay without bonuses and overtime. To the extent that your recurring non-housing debts (student loans, car payment, credit cards, etc.) exceeds 10% of your income, that will begin to erode your buying power.

Your monthly payment is your loan payment (from an online calculator), plus taxes, insurance, and any HOA dues. Taxes are approximately $1 per month per $1000 of purchase price. Insurance ranges from $50 to $80 per month (depending on the size and type of home).

Attached find our service guarantee and a link to a video presentation on our quality program.

http://www.sdhousehunting.com/video/home_buyer/qsc_buyer.php

It’s critical that you get pre-approved for a loan, interview agents, and then hire one.

Thanks inquiring and let us know how we can assist you.

Jeremy Katz, Broker
San Diego House Hunting &
San Diego Commercial REO
http://www.SDHouseHunting.com
Member, NRBA (National REO Brokers Association)
619-497-1834 Office
7840 Mission Center Court #201
San Diego, CA 92108

619-227-5221 Cell

You Qualify to Buy the Home.Unfortunately, the Home Doesn't Qualify!

2009-05-29T11:56:00.000-07:00

You Qualify to Buy the Home.Unfortunately, the Home Doesn't Qualify!

Lenders are becoming strict when evaluating prospective homes as collateral for your loan. Banks are finding that the homes they are taking back in foreclosure are in much poorer condition than they had thought when they made an original loan or refinance. As a result, they are apprehensive to make a loan on a property that may have issues (unpermitted additions, code violations, or any variety of unsafe conditions). Especially stringent are FHA and VA loans. Bank sellers may not want to sell a home to a buyer using an FHA or VA loan because of the potential that the buyer's lender will require repairs to be made to the home prior to making the loan - banks want to sell homes "As is".

Why would you qualify but the home you want not qualify? In this market, more than ever before, getting pre-approved for a loan is a fundamental first step toward your successful purchase. Qualification is tougher than ever - the most daunting aspect of the process being that all documentation must be fully verified. Lenders have swung to the other end of spectrum in their qualification process: they expect all documentation to full, complete, with easily independently verified.

Additionally, most banks are requiring buyers to get pre-approved with them - regardless of how many other major and reputable banks you may have been pre-approved with. Their goal is to re-coup some of their losses by winning your business on a new mortgage.

It's very exciting to get pre-approved for a loan and establish your buying power! You'll know the price to stay below as well as receive a specific estimate of both the costs of purchase as well as your monthly expected payment. At this point, it's critical to interview and hire the right agent to support your goals. You can easily find candidate homes online - but does the home qualify for financing?If you're shopping for a townhouse or condo, or any property that has a homeowner's association, it's critical to insure that the project qualifies for financing. Work with an agent that knows how to quickly determine if the complex qualifies for FHA or VA financing. In these cases, the borrower, property and homeowner's association must all "qualify" for the loan. If the HOA is facing bankruptcy or may be in financial distress, the property may be disqualified for financing. Imagine how miserable it would be to find this out too far into the process with an agent that doesn't have the knowledge or experience to check this in advance.

In addition to our in-depth research and online tools, making the right phone calls and contacting the right people will save you time and effort in your homebuying process. We won't waste your time showing you homes that don't qualify for your financing.

Jeremy Katz, Broker
San Diego House Hunting
http://www.SDHouseHunting.com
619-497-1834 Office
7840 Mission Center Court #201
San Diego, CA 92108

619-227-5221 Cell

$8,000 Tax Credit has Incredible Potential!

2009-05-29T11:54:00.000-07:00

$8,000 Tax Credit has Incredible Potential

Although highly publicized, some critical elements of the First-time Homebuyer tax credit are just now beginning to come to light - there's still time for you to take advantage. Most buyers qualify for the tax credit. For more information and details click here.

A recent ruling by FHA poses a new and unique opportunity: you can apply your tax credit as your downpayment! If you are working to purchase a home for $250,000 and you qualify for the credit, you can apply the entire credit as your downpayment. Doing so would leave only your closing costs to pay on your side! Naturally, you have to find a home you like that will take an FHA loan! The option to apply the credit as downpayment requires the buyer to be using an FHA loan.Interested in more information on the $8,000 Tax Credit? Click here...

(Disclaimer: Seek tax advice prior to making your decision) This tax credit also has a special provision in the case that your tax liability is zero (or even negative!). If you owe no tax and you have a portion of the tax credit remaining, you can receive this difference as a tax refund! That's right: if you owe less tax than $8,000 when you process your taxes in April 2010, then you not only don't need to pay any tax, you get the difference in the form of a refund! Remember, the rules ditacte that you not exceed certain income limits and that the amount of the tax credit is 10% of the purchase price, not to exceed $8,000.

Jeremy Katz, Broker
San Diego House Hunting
http://www.SDHouseHunting.com
619-497-1834 Office
7840 Mission Center Court #201
San Diego, CA 92108

619-227-5221 Cell

Real Estate Market Statistics for April 2009

2009-05-29T11:51:00.000-07:00

Real Estate Market Statistics for April 2009
Current Real Estate Market Conditions* For San Diego, CA

Bank Owned Market Statistics for April 2009
Number of NEW ACTIVE REOs (April) 631 down from 800
Number of ACTIVE REOs 1558 up from 1269
Average DOM of ACTIVES 61 Days
Number of PENDING REOs 1365
Number of SOLD REOs (April) 742 down from 767
Average DOM of SOLD REO’s (April) 52 down from 53
% Sales Price / List Price (April) SOLDs 102.1% up from 99.9 %

Six Month Bank Owned Averages
Number of SOLD REOs (Six Months) 702 down from 713
Average DOM of SOLD REOs (Six Months)52

% Sales Price / List Price (Six Months) SOLDs 100.3%

Broader Market Averages for April 2009
Broader Market New ACTIVE Properties 4491
Broader Market ACTIVE Properties (on 4/30/09) 13892
Broader Market DOM for ACTIVES 78
Broader Market SOLD Properties 2710
Broader Market DOM for SOLDs 76
Broader Market % Sales Price / List Price 98.9%
* All data is deemed reliable, but not guaranteed. Data from Sandicor MLS. Our MLS does not support specific identification of Bank Owned properties. May statistics will incorporate an enhancement to the MLS to specifically identify Bank Owned homes. Only homes that are disclosed as "Bank Owned" are included in these statistics.

Jeremy Katz, Broker
San Diego House Hunting
http://www.SDHouseHunting.com
619-497-1834 Office
7840 Mission Center Court #201
San Diego, CA 92108

619-227-5221 Cell

Market Analysis and Update

2009-05-29T11:48:00.000-07:00

There are under 11,000 homes available on the market in San Diego as compared to our typical volume of over 18,000 homes. As a result of these short supplies, home buyers are often making multiple offers on homes and frequently losing out more often than they are winning. An agent recently disclosed via the confidential remarks in the San Diego MLS that a certain bank owned home had already received 37 offers. She wrote, "Please, no more offers."

Furthermore only 2,300 homes are priced below $300,000. That means that affordable homes are in extremely short supply. The days on market (DOM) for homes has become extremely low (below 60) for the most desirable homes that can be financed (see article below on "Homes that don't Qualify").Interested in more market update information and analysis? Click Here...

Recently, the Sandicor MLS has adjusted the available property statuses to include a new status called "Contingent". Properties in contingent status are technically active, but are awaiting approval from the seller. This pertains to both short sale and bank owned homes. Short sales may be awaiting approval from the seller's lender to allow the home to be sold for a price below what is owed on the current mortgage. Bank owned homes may be contingent because the listing agent is awaiting signature from the bank to create a complete and legal contract. This waiting timeframe for bank owned seller's signature could be 5-10 business days while a short sale can take months to get approved!

If you are an investor buyer, we have available an in-depth analysis tool to assist us in introducing the most aggressively priced homes in the San Diego market. Our system calculates nightly the price per square foot for every property available in the entire MLS. From there, it develops an average price per square foot for each type of property, bedroom count and zipcode across the county. Within this matrix, each property is compared against similar homes in the same zipcode and the system provides us an easy reference for those homes that are priced 20% below average (when compared against comparables). This analysis approach is unique and powerful! Let us introduce some prospective investments for you!

Our unique combination of solid research, technical tools, industry relationships and aggressive negotiations are a winning combination you can count on. We look forward to assisting you!

Jeremy Katz, Broker
San Diego House Hunting
http://www.SDHouseHunting.com
619-497-1834 Office
7840 Mission Center Court #201
San Diego, CA 92108

619-227-5221 Cell

The Truth About the Foreclosure Moratoriums. . .

2009-04-20T11:09:00.000-07:00

Finally we are seeing real news about the affect of the Obama administration plan in combination with the moratorium that was put in place:

The exerpt below is from the Wall Street Journal: http://online.wsj.com/article_email/SB123975395670518941-lMyQjAxMDI5MzE5NDcxNTQzWj.html

The moratorium appears to have been “pure politics” – who knows how the new Housing Czar actually thought this would HELP? 10% of GMAC borrowers could be helped by the two new administration plans???!! Pitiful. Another part of the article mentions that foreclosures in CA are up 80% in March (month-over-month) – the California moratorium has workarounds.

Remains to be seen that if the new supply into San Diego of foreclosed homes will be outpaced by substantial demand. We’re seeing some crazy market conditions with foreclosures on the rise and prices rising – people want to buy but nothing lendable is for sale. People qualify and the homes do not (due to condition).

Very remarkable.
GMAC's mortgage division, which had temporarily halted foreclosures while awaiting details of the Obama plan, is now reviewing loans to see which ones will qualify under the program. So far, about 10% of borrowers in some stage of foreclosure appear to be eligible for the federal program, a company spokeswoman says. Although GMAC may be able to work with investors who own these loans to come up with another solution, she says, many borrowers who don't qualify for help under the federal program are likely to wind up in foreclosure.
Mortgage companies are sorting through loan files to determine which borrowers are candidates for help. "At the time a moratorium expires, we have a team of folks who will pore through all of those loans where borrowers have not paid before we will take the next step in the process," says Jim Davis, executive vice president for American Home Mortgage Servicing Inc. "If there is any borrower contact, we will hold off on the foreclosure process until we've exhausted every effort to assist that borrower."
Still, some borrowers who are currently talking to their mortgage companies are also likely to wind up in foreclosure once their files are reviewed. "We are getting so many of these cases where people don't fit the new [Obama] program," says Michael Thompson, director of Iowa Mediation Service, which works with troubled borrowers. Many borrowers are unemployed or underemployed or have credit problems that go well beyond their mortgage troubles, he says.
Many have been "playing for time" while the moratoriums have been in place, he says. But the delays have only increased the amount of interest and fees they owe, making their loans "nonviable in the long run."
Many troubled loans will ultimately wind up in foreclosure because the borrower doesn't have sufficient income to make even a reduced mortgage payment, or doesn't respond to the mortgage company's requests for information. "Certainly half of the loans that would have wound up in foreclosure before the foreclosure moratoriums went in place" will ultimately wind up in foreclosure, says Michael Brauneis, director of regulatory risk consulting at Protiviti Inc., a consulting firm.

Jeremy Katz, Broker
San Diego House Hunting
619-497-1834 office
619-497-1836 fax
619-227-5221 cell

Market Conditions and Results in February 2009

2009-04-02T13:02:00.000-07:00

General overview of market conditions and results in February 2009 (March can be calculated with accuracy in about 10 days):

(Residential 1 Unit):
Current Listings 14530
Short Sales: 5677 (39%)
Obviously Bank Owned: 1006 (7%)
Remainder: 7847 (54%)

The lack of inventory is astounding. Especially considering that typical inventories are in the 19,000 – 21,000 range. Considering a significant number of the short sales can’t be sold or agents won’t cooperate with them, we’re looking at very few homes. Under 9000 properties for sale, countywide.

Remember we’re only calculating “Obviously” bank owned homes. A significant number of banks are now not allowing the homes to be advertised as “Bank Owned” – or otherwise obviously identify them as such.

In Encanto (92114) and Logan Heights (92113) totals:
Current Listings 311
Short Sales: 180 (58%)
Obviously Bank Owned: 45 (14.5%)
Remainder: 86 (28%)

In Eastlake (91913,91914,91915):
Current Listings 685
Short Sales: 526 (77%)
Obviously Bank Owned: 122 (19%)
Remainder: 37 (5%)

Turning our attention to SOLDS for February:

87 Solds in Eastlake during the month total
16 Solds in Eastlake during the month were approved short sales – only 18%
It’s about 8 months inventory.

In Encanto and Logan Heights:

60 Solds in Encanto and Logan during the month total
8 Solds in Encanto and Logan during the month were approved short sales – only 13%
It’s about 5 months inventory.

This basically indicates a “normal” market with 4-6 months inventory. It also shows that even good agents with experience in short sales are not likely to be closing their short sales with the regularity they are claiming – up to 90%, they claim. 72 properties were cancelled or withdrawn in February of which 56 were short sales. That would be a “failure rate” of 78% -- hardly a 90% success rate! In March it was 36 out of 52 – 69% failed short sales.

Countywide, we’re looking at 2188 SOLDS in February of which 458 were short sales – about 21%. So how does this work when 1 out of 3 homes for sale are short sales but only 1 out of 5 SOLDs are Shorts? Frankly, short sales are not “working”. There are over 11 months supply of short sales right now.

Finally, let’s consider the absorption rate for the county, discounting short sales. There would be 8853 “Non-Short” Sales available right now. There were 1730 successful SOLDs in February that are “Non-Short” sales. That rate is 19.5% or about 5 months inventory. That means the market is now “balanced and getting tighter”. Look for prices to rise and foreclosures to increase.

How can prices rise and foreclosures increase simultaneously?!?? I’ll discuss that, next time!

Jeremy Katz, Broker
San Diego House Hunting
619-497-1834 office

Attention For Sale By Owners! Part Two

2009-04-01T12:17:00.000-07:00

Before you decide to sell For Sale By Owner (FSBO), consider these questions and weigh the consequences of assumingthe responsibility versus employing a professional. A little time spent investigating now could pay off tenfold in the end.
Questions To Consider
Do I have the time, energy, know how, and ability to devote a full forced effort to sell my home?
One of the keys to selling your home effectively and profitably is complete accessibility. Many
homes sit on the market much longer than necessary because the owner isn.t available to show theproperty. Realize that a certain amount of time each day is necessary to sell your home.
Am I prepared to deal with an onslaught of buyers who perceive FSBOs as targets for low balling.?Another challenge of selling a home is screening unqualified prospects and dealing withlow-ballers.. It often goes unnoticed that much time, effort and expertise is required tospot these people quickly. Settling for a .low ball. bid is usually worse than payingbroker commissions.
Am I offering financing options to the buyer?
AmI prepared to answer questions about financing?
One of the keys to selling, whether it.s a home, a car... anything, is to have all the
necessary information the prospective buyer needs and to offer them options. Think
about the last time you purchased something of value, did you make a decision before
you had .all your ducks in a row.? By offering financing options, you give the home
buyer the ability to work on their terms. You.ll open up the possibility of selling your
home quicker and more profitably. A professional real estate agent will have a
complete team for you to profit from... lenders... title reps... inspection companies...
they'll be completely at your disposal.
Do I fully understand the legal ramifications and all the necessary steps required in selling a home?
Many home sales have been lost due to incomplete paperwork, lack of inspections or not
meeting your state’s disclosure laws. Are you completely informed of all the steps
necessary to sell real estate? If not, you may want to consider consulting with a
professional.
Am I capable of handling the legal contracts, agreements andany disputes with buyers before or after the offer is presented?
Ask yourself: .Am I well-versed in legalese? Am I prepared to handle disputes with
buyers?. To avoid any disputes, it is wise to put all negotiations and agreements in
writing. Many home sales have been lost due to misinterpretation of what was
negotiated.
Have I contacted the necessary professionals... title,inspector (home and pest), and escrow company?
Are you familiar with top inspectors and escrow companies? Don.t randomly select
inspectors, attorneys, and title reps. Like any profession, there are inadequate individuals
who will slow, delay and possibly even cost you the transaction. Be careful!

Finally, although people are successful selling their home For Sale By Owner every day
here in San Diego, they must be willing to endure the challenges involved. Often, even
.successful. owners say they would have been better off with the right agent. Perhaps this
report reveals some of and may help you to avoid the pitfalls many FSBOs go through.
I hope you found the ideas valuable and if there is ever any way I can be of service to you
or anyone you care about, please contact us. It costs nothing to discuss with us the criteria
you should be using to hire the best agent possible. Even if you are unsure that FSBO is
right for you, give us a call . ultimately, you.ll be glad you did, either way.
Thank you!
San Diego House Hunting SEARCH THE MLS LIKE A REALTOR®!
619-497-1834 HTTP://WWW.SDHOUSEHUNTING.COM

Attention For Sale By Owners! Part One

2009-03-25T12:35:00.000-07:00

Many homeowners believe that to maximize their home sale they should sell it themselves. At first glance, they feel selling a home is simple. Why should they pay a broker fee for something they could do themselves? In fact, only about 5% of all the homes sold last year were sold For Sale By Owner (FSBO).

Among those, close to half of the FSBOs said that they would hire a professional next time they sold. Thirty percent said they were unhappy with the results they achieved by choosing FSBO. Why?

Many FSBOs told us the time, paperwork and everyday responsibilities involved were not worth the amount of money they saved in commissions. For others, the financial savings were even more disappointing. Properties being sold For Sale By Owner are perceived as being “On Sale”, rather than a premium, scarce resource. Buyers of FSBOs expect to get a big discount – after all, there are no broker’s fees involved.

***30% of For Sale By Owners were unhappy with the results they achieved by assuming the responsibility themselves.***

Selling a home requires an intimate understanding of the real estate market. If the property is priced too high, it will sit and develop a reputation for being a problem property. If the property is priced too low, you will cost yourself serious money. Some FSBOs discovered that they lost money as a result of poor marketing decisions. In the final outcome, this far outweighed the commission they would have paid. And even when the correct marketing decisions are made, buyer’s (especially when represented by solid, aggressive real estate agents!) will continue to negotiate and haggle to the bitter end – often costing the seller thousands more in repairs, requests, changes, litigation, errors, and headaches.

Before you decide to sell FSBO, consider these questions and weigh the consequences of assuming the responsibility versus employing a professional. A little time spent investigating now could pay off tenfold in the end. (Next in the series: Questions for FSBOs to Consider. . . )

Requesting the Note: Avoiding Foreclosure?

2009-02-24T12:16:00.000-08:00

FACING THE LOSS of their homes, some individuals are partnering with their attourneys and asking banks to produce the original mortgage note, thinking it can delay foreclosure.

This and many other similar tactics are employed by both savvy and unscrupulous attorneys to affect this and other delaying outcomes on a foreclosure. Some of these tactics are reputable and others are not.

The main disreputable thing attorneys are sometimes doing is implying that they can “Stop” foreclosures. Or they are implying that by “Avoiding” foreclosure that the bank will not (or cannot) foreclose. Just not true.

The measures introduced today by the Obama administration may positively effect homeowner’s goal to stay in their homes. The challenge can be likened to that of “triage” in a war zone battle: who can be saved and who is just “too far gone” to be helped? What criteria should be applied? Who should be “thrown a lifejacket” – and who should be allowed to drown?

Some possible criteria include: method of qualification (stated / full doc), can they prove they can make a reduced payment, did they buy with a downpayment or with “no money down”, are they employed? Some not so popular additional criteria may be applied (rightly or wrongly!) such as: are they party to a lawsuit, is it a condominium in which there will be special assessments, do they have unpaid taxes to the Federal or State, are they currently behind in child support or alimony payments, etc? Are there unpaid property taxes and if so, how will they be brought current?

If they could not qualify for a home in today’s market, even with a revised market value placed on their home, then perhaps they should not be “bailed out”. These are difficult and unpopular decisions. Regrettably, however, we cannot save everyone – nor would it be wise to do so. We await the criteria by which lenders will decide to lower interest rates, fix interest rates, reduce principal balances, and recover the real estate market.

How to Eliminate Risk in Real Estate Investment- Part 2

2009-01-28T11:36:00.000-08:00

In the second part of our three part sereies on Real Estate Investment, we discuss the need for research. Remember to be diligent! The more you know, the less the risk. The following are common mistakes that investors make when it comes to research. You need to protect yourself and find out everything you possibly can about your investment.

5. Failure to do a Thorough Inspection- Look under every rock! Hire a professional inspector. Ask the tenants about pest problems, structural damage or recurring problems. Don’t overlook anything! A value-driven real estate professional will help you find the right inspector and can help you avoid costly mistakes. When investing your hard-earned money, be sure and use sound business judgment!

6. Failing to Have Adequate Insurance- Investment property brings liability. Tenants, cars, parking lots, property liability - the list is quite extensive. Adequate insurance coverage is an absolute must! Be sure to consult with an insurance professional and protect your hard earned assets.

7. Inspect, Approve, and Confirm All Documents- The list of documents that need to be proofed can be overwhelming to the first time investor. Building permits, zoning laws, rental and lease applications, health licenses, laundry leases, underlying loan documents, by-laws, title policies, mineral leases, inspection reports, purchase contracts, insurance.. don’t attempt to do it alone. The right professional can remove most of the stress and bring the transaction to a conclusion smoothly.

8. Get a Bill of Sale for All Property Involved- Many types of personal property (appliances, furniture, fixtures, etc.) can be involved in an investment sale. Be very detailed... know who owns what!

How to Eliminate Risk in Real Estate

2009-01-27T14:52:00.000-08:00

Welcome to the first in our three part series on the 12 Common Mistakes Made by Novice Investors. You'll learn how to guarantee high rates of return!

Real estate investment has provided many investors with positive cash flow, tax benefits and the satisfaction of making an impact in others lives. However like any investment, real estate has intricate nuances and market trends that, when ignored, can cause an investor tremendous heartache.

Unbelievably, many first-time investors are willing to part with their hard-earned cash without taking the time to study their investment. They rely on traditional trends and gut feelings. Before you risk your investment, take the time to learn all you can about your market. By aligning yourself with the right professional, you can avoid these 12 common mistakes and you’ll ensure an excellent return on your investment.

1. Failure to Determine Your Time Need- Cash flow, capital appreciation, tax benefits, loss of management, equity pay-down and pride of ownership are just some of the things that need to be addressed before you make that investment. A service-minded real estate professional can be a tremendous asset by taking the time to evaluate your needs and making sure you’ve got all your bases covered.

2. Not Checking out the Seller or Seller’s Agent’s Numbers- Claims of extremely high rates of return run rampant in real estate investment. Don’t get caught up in the excitement - check everything: rents, payment history, taxes, expenses, deposits, future modifications... everything! Make sure you have the right agent. It’s like having a good insurance policy against overlooking all the seemingly insignificant but very important details.

3. Forgetting You’re Buying a Business- Owning investment property carries great potential for creating wealth and... some potentially difficult decisions. Evictions, re-investment into the property and time management all need careful consideration. Remember this is not a “hands-off” business.

4. Avoid Negative Cash Flow- Property that eats cash every month can drain your working capital. This creates stress, frustration and can become quite painful. Predicting constant appreciation is extremely difficult if not impossible for the unseasoned investor. A strain on your cash flow may cause you to sell the investment before the benefits of ownership are ever realized.

Stayed tuned for the next in our 3 part series. . .

How to Buy Your First Home the Easy Way- Part 3

2009-01-15T10:48:00.001-08:00

Welcome to the final chapter in our series on common mistakes of first home buyers. The final steps outlined in this segment will leave first time homes buyers feeling confident and capable. Outlined below are more tips to know and things to avoid in order to have an postive home buying experience.

8. Plan For Flexibility- Closing dates are not written in stone. Allow for
contingencies and have a back-up plan. If you or the sellers need a little more time
to conclude the final arrangements, don.t let these delays upset or frustrate you.
These types of circumstances are not uncommon in a real estate transaction.

9. If It's Not In Writing, It Doesn't Exist- All promises and discussions are to be in writing.
Don.t make any assumptions or believe any assurances. Even the best intentions can be
misinterpreted. Have your real estate professional keep an ongoing log (in writing) of all discussions,and get the seller.s written approval for all agreements.

10. Loyalty Breeds Loyalty- Be open, honest and up-front with your team. Hard feelings and
disloyalty will cause headaches, delays or may even keep you from getting into the home you workedso hard to locate. Take the time to select the right team in the beginning and your first home purchasewill be a simple, easy and profitable experience you.ll have fond memories of... for years to come.

My hope with this report has been to educate you and help you avoid the pitfalls many home buyersgo through. I hope you found the ideas valuable and if there is ever any way I can be of service toyou or anyone you care about, please contact my office. Using a .Buyer.s Agent. is always free of charge. We.ll sit down for 15-20 minutes... no high-pressure, just plain, honest talk about what it.sgoing to take to achieve your personal goals. Let.s get started toward you owning your first home! We're looking forward to assisting you in the purchase of your first home. This is an exciting timeand although the challenges can sometimes seem daunting, we will assist you throughout. To takethe first step, all you need to do, is call us now at 619-497-1834.

Thank you!
San Diego House Hunting SEARCH THE MLS LIKE A REALTOR®!
619-497-1834 HTTP://WWW.SDHOUSEHUNTING.COM

How to Buy aYou First Home the Easy Way-- Part 2

2009-01-14T14:38:00.000-08:00

Welcome to the second part of our series on First Home Buying! As we pick up where we left off, we look at the most common mistakes that first time home buyers make. Following these simple steps will ensure your a savvy buyer.

4. View Only Homes that Meet Your Criteria- Work with an agent that is comfortable with
your .buying strategy.. Do your own research in advance of meeting with your Realtor. What
neighborhoods are acceptable? What trade-offs are you willing to make (size, location, bedrooms,price, etc.). When you trust your agent, focus actively on the properties they know are best for you.
If you agent consistently shows you property that does not make sense, find a new Realtor.
5. Utilize Your Team- By aligning yourself with the right real estate professional, you.ll have an
entire team working for you. Top real estate professionals have lenders, title reps, inspection teams - an entire group of trained professionals to make the whole buying experience simple and easy for you. Be Columbo .check out allexpenses.Taxes, utilities,owner dues...everything!
6. Be Columbo- Check out all your costs and expenses before you sign: utilities, taxes,
insurance, maintenance and homeowner dues, if applicable. Make sure all utilities are on (gas,
electricity, and water), so you can inspect everything in working order. Ask lots of questions and bevery detail conscious.
7. Do a Final Walk-Through- Visit the property after all the furnishings have been moved out
to be sure there are no surprises. Be absolutely positive the property was left exactly as you had
agreed upon in the contract. Many times things are unintentionally overlooked that could have beenspotted in a final walk-through.

Stay tuned for the conclusion of our series of the need to know for first time home buyers.

How to Buy Your First Home the Easy Way! Part 1

2008-12-19T11:54:00.000-08:00

How to Buy Your First Home the Easy Way! Avoid the Common, Potentially Devastating Mistakes First Time Home Buyers Make.

Buying a home can be a “hair-raising” experience. It can be a roller coaster of emotions... finding the right place... securing the loan... moving in. And if you’re like most of us, your home will be your largest investment. The emotions over such a large and personal purchase can often cloud good business judgment.

Many home buyers do very little research before “diving in” and investing their hard-earned money. Before doing that, doesn’t it make sense to be as informed as possible? That’s what this report is all about. It’s designed to help you avoid 10 common, critical mistakes many home buyers make. If you follow these 10 suggestions, with the help of the right real estate professional, you’ll make a good sound business decision that you’ll be happy and proud of for years to come.

1. Inspect, Inspect and Inspect- Go over the inspection report with a fine tooth comb. Make sure the report was done by a professional organization. For condo purchases, go over the by-laws, and association fees. Don’t take anything for granted... inspect everything!

2. Imagine the Property Vacant- Your furnishings and decorations (positive or negative) will be the ones filling this new residence. Don’t be swayed by beautiful furniture ... it leaves with the owner.

3. Income Plus Lifestyle Equals Mortgage Payment- Sit down with a competent real estate professional and honestly discuss your income level and living expenses. Take into account future considerations like: children, add-ons, amenities or fix-ups. Your dream home is certainly worth stretching for, but not beyond being financially comfortable.

Stay tuned for the next installment of our three part series: How to Buy Your First Home the Easy Way!

Thank you!

San Diego House Hunting SEARCH THE MLS LIKE A REALTOR®!
619-497-1834 HTTP://WWW.SDHOUSEHUNTING.COM

San Diego REO Market Update September 2006

2006-11-08T09:14:00.000-08:00

Current REO Market Conditions* For San Diego, CA

REO Market Statistics for September 2006

Number of NEW ACTIVE REO/Short Sales (September) = 81
Number of ACTIVE REO/Short Sales = 282
Average DOM of ACTIVES = 82
Number of PENDING REO/Short Sales = 24
Number of SOLD REO/Short Sales (September) = 5
Average DOM of SOLD (September) = 67
% Sales Price / List Price (September) SOLDs = 96.6%

Six Month REO Averages

Number of SOLD REO/Short Sales (Six Months) = 29
Average DOM of SOLD (Six Months) = 73
% Sales Price / List Price (Six Months) SOLDs = 97.1%

Broader Market Averages for September 2006

Broader Market DOM for SOLDs = 70 - 80 days

* All data is deemed reliable, but not guaranteed. Data from Sandicor MLS.

Commentary:
The September market for REOs was substantially unchanged from the results in August. DOM has moved up considerably however from 71 to a new average of 82. Further slowing should be expected as we move further into the fall and winter. Banks continue to remain fairly strong in their negotiations allowing a less than 3% discount on asking price – that must be viewed in light of the number of unsold REOs, however. Esssentially, either the property is selling approximately after one price reduction at about 3% off asking price or the property is not selling at all. There are currently 62 homes that have over 100 DOM. Recommendation: Be aggressive with a price cut and get it SOLD – or plan to stick it out past December and into January/February.

We hope you find this information useful. We’ll keep you updated on a periodic and monthly basis. Please contact us if you have any specific requests for information, market statistics, or would like to learn more about our professional results when listing, marketing and selling assets.

If you agree to experiment by using us for your next REO in San Diego, we’ll commit to keeping you highly aware and informed of San Diego Market Conditions for REOs and for the market overall. We hope that this information is useful to you, and may serve to assist you when evaluating the Southern California market, and especially San Diego.

Thank you!

Jeremy Katz
San Diego House Hunting
http://www.SDHouseHunting.com/?s=sep06reoblog
619-497-1834 office
619-497-1836 fax
619-227-5221 cell

Last Chance to Lock in Profits?

2006-05-17T10:21:00.000-07:00

Shocking statistics were made available yesterday from the local San Diego MLS (Sandicor) at www.sandicor.com

Over 33% decrease year-over-year in listings sold in San Diego may indicate total market capitulation. This may be the sign that buyers have decided to "stay on the sidelines" until further notice. Typically, there is a trend upward in listings taken and listings sold in April as compared to March.

This April, however, is different!

Statistics 2005
Listings * Listings
Taken * Sold
March 7,062 * 3,564
April 7,300 * 3,956

Statistics 2006
Listings * Listings
Taken * Sold
March 7,705 * 3,006
April 7,484 * 2,626

Previous months this year, prior to April, showed a 15% decrease in listings sold when compared to the same month in the prior year (2005). This 33% decrease, is a break in the trend and may be the indicator of a significant slowdown.

These facts, when compared with recent prime rate increases (Prime now stands at 8.00%), and further anticipated tightening by The Fed (expecting perhaps an addition 0.50% before the end of the year) will make affordability, already extremely difficult, even that much more challenging in the months to come.

If you were contemplating leaving San Diego in the next 2 years, I would recommend locking in your profits now. It would be cheaper to rent for your remaining time here, than to lose money in the market that may be approaching.

If you are standing on the sidelines, I would recommend selecting properties carefully. Work with an agent that can uncover true DEALS and values for you. Find the seller that needs to sell. Use an agent that knows the market and has access to hidden properties. Sometimes, the best values are actually "hidden in plain view" -- you need to be able to find them among the approximately 20,000+ listings that are available.

As always, I look forward to hearing from you!

Opt Out of Credit Bureau Marketing

2006-05-12T10:58:00.000-07:00

Did you know that when you allow a company to run your credit that the mere fact that you are seeking to secure credit is information that the credit bureaus are now SELLING various marketing companies?

In other words, you go and apply for a loan and that triggers a bunch of loan solicitations. If you’re like me, you get a lot of offers (and even phone calls!) and it’s extremely annoying. Furthermore, it has come to my attention that in addition to this basic information, your FICO score, loan balances, and other key information is redistributed to the parties buying this information. To me, that was absolutely shocking. I suppose nowadays, we shouldn’t be so naïve.

So, even if you tell the mortgage broker or department store that “You don’t want your information re-sold”, that’s only a contract with them directly – not with the underlying credit bureaus! Incredible as it may seem, even if the person you are working with is honest about their intentions to use your information, the underlying gatekeeper is profiting from their position in the marketplace.

If you want this to stop, go to this website and Opt Out. This should help to reduce the junk mail, ridiculous offers, and perhaps even annoying phone calls:

https://www.optoutprescreen.com/opt_form.cgi

I “vote” to stop them just on the basis that I believe they make so many errors and are so difficult to work with that they should never be allowed to “sell me as a lead”.

In case you’re wondering if it’s legit, check the websites from the credit bureaus…they all refer to this site as the “authority” for processing these requests.

Most of you, by now have long since added yourself to the Federal level “Do NOT CALL” list. In case you haven’t go here:

https://www.donotcall.gov/default.aspx