soldonsd

Are you Inflation Ready?

2009-07-21T14:51:00.000-07:00

Its no doubt that the best way to beat inflation is with real estate and gold.
Real estate is positively is correlated with inflation, as both rent and value then to go up along with rising price. Gold is positively correlated with inflation, and also acts as a currency substitute that would rise in the face of a falling dollar. It may not happen in the next few months but it will soon, higher inflation then we have experience in the last few decades is coming and now is the time to take steps to beat it. Contact me today to find out how my investor clients are making this market another way to increase their net worth and keep their dollar from deteriorating. Its easier then you think!

“The government is spending trillions of dollars using a broad swathe of initiatives to fight deflation, which is the opposite of inflation. And therein lies the rub. Should the government's efforts succeed, and there are some signs that they may, the huge new debt issuance that's supporting them could lead to a spike in inflation that we have not experienced since the 1970s. The government will err on the side of letting inflation run a while, rather than risk a double-dip recession.”
---Cliff Gladson, Senior Vice President, Fixed Income Investments

Top 10 Myths About Credit Scores Debunked

2009-05-07T15:51:00.000-07:00

Top 10 Myths About Credit Scores Debunked
RISMEDIA, May 7, 2009-With many Americans considering a home purchase or refinance, seeking a new job, purchasing a new car, or striving to pay off credit card debt, 2009 might be the year of the credit score, said Bills.com president Ethan Ewing.
“Many Americans hold mistaken beliefs about credit scores,” cautioned Ewing, who heads the free online consumer portal at Bills.com. “Misinformation on television and in hearsay from friends and neighbors only compounds the problem.”
Here are the top 10 commonly held myths surrounding credit scores:
Myth #1: A credit score is a credit report. The credit report is a detailed listing of all debts and payments, going back throughout an individual’s entire payment history, Ewing explained. For each entry, it shows the creditor’s name, amount owed, the highest balance owed, the available credit, whether the account is open or closed (and who closed it), the number of late payments and whether the account is in default. A credit score is a number between 300 and 850 that is based on complex formulas incorporating all the data in the credit report.
Myth #2: Those who are not in default do not need to check their credit report. Everyone should check his or her credit report at least once a year (quarterly is not a bad idea in today’s market) to be sure the report contains no erroneous information. Visit www.annualcreditreport.com for a free, no-obligation copy of the report.
Myth #3: Checking a credit report damages credit. Reviewing your own credit information has no effect on a credit score, Ewing said. Neither does a credit report review by a prospective landlord or employer.
Myth #4: Everyone has one credit score. Credit score calculations are compiled using data from three different credit scoring agencies (Equifax, Experian and TransUnion). The resulting scores might vary slightly among the three agencies if they have slightly different information, but they will be similar.
Myth #5: Married couples share a credit score. If all of a couple’s accounts are joint, their scores will likely be similar, but each individual maintains a unique credit record and credit score. On the flip side, after a divorce, ex-spouses need to follow protocol to have creditors remove either party from a joint account.
Myth #6: Shopping for a loan destroys credit. It is true that “hard inquiries” - examinations of a credit score in preparation for extending credit can have a small negative impact on credit. However, credit bureaus take into account that consumers might inquire about a loan from multiple mortgage companies or auto lenders. “If multiple inquiries are received from the same type of lender within a 14-day period, the credit scoring companies do not count each inquiry against the borrower,” Ewing explained. But credit card account inquiries to open new accounts are counted individually.
Myth #7: To improve a score, close unused accounts. An important component of a credit score is available credit, or the unused credit that has been offered (on a credit card, for instance) but not used. Closing unused cards removes those available balances from the equation and can actually lower a credit score. Today, some banks are automatically lowering limits or closing accounts to reduce their own credit exposure. Individuals whose debt load is manageable should not experience an extreme effect on their scores.
Myth #8: To boost credit quickly, just pay off bills. Credit scores reflect performance over time. Scores will not change overnight.
Myth #9: For a fee, vendors can fix a bad score. Again, credit scores show historic behavior. Be cautious about companies that claim to “fix” or “repair” credit. “You yourself can remove inaccurate information,” Ewing said. “Beyond that, be aware that some companies send credit scorers a deluge of letters asking that they verify - and in the process, remove all past negative information. If and when truthful information is verified, however, it will quickly return to the credit report.”
Myth #10: Never get help - it is too hard on credit. It is true that credit counseling, debt settlement and bankruptcy all can cause significant black marks on a credit report. “If you are in real trouble, however, you can and should seek help,” Ewing urged. “Which option you choose will depend on the severity of your situation. Credit counseling can help to manage bills, and lower interest rates and monthly payments to creditors. Debt settlement firms can negotiate to lower the principal amount of your debts, typically providing a faster path to debt freedom than credit counseling. Bankruptcy, an even more serious alternative, should be discussed with a bankruptcy attorney.”
“Credit is important, but knowing the truth about credit might be even more important,” Ewing concluded. “Before taking action that might hurt or help your score, check your facts to be sure your actions will help your financial picture.”

FREDDIE MAC EXTENDS SUSPENSION OF SINGLE FAMILY FORECLOSURE SALES, EVICTIONS UNTIL JANUARY 31, 2009

2009-01-11T23:24:00.001-08:00

http://www.freddiemac.com/news/archives/servicing/2009/20090108_suspension-extension.html

"If You Wait for the Robins Spring Will be Over"

2008-10-18T14:45:00.000-07:00

Warren Buffett, the “Oracle of Omaha,” has often been quoted for his investment philosophy, “Be fearful when others are greedy, and be greedy when others are fearful.” Buffett repeated that philosophy today in a New York Times opinion piece, where he said he’s buying U.S. stocks for his personal portfolio to the extent that they will soon comprise 100 percent of his account.

In his Times piece, Buffett agreed that the current economic situation has plenty of negatives, including rising unemployment and slowing business activity due to the credit crunch. Stocks, however, will likely begin to rise before the economy and consumer sentiment show signs of recovery. “So if you wait for the robins, spring will be over,” he wrote.

This is also true for real estate, if you wait to buy till everyone else is felling confident in the market, then values will already be on the rise. You cant time the market perfectly, we never know the bottom till hind-site. With multiple offers on almost every bank owned foreclosure, the bottom of the bottom is near if not already here.

You can read the complete Buffett opinion piece on the New York Times website by clicking here.

http://www.nytimes.com/2008/10/17/opinion/17buffett.html?_r=2&em&oref=slogin&oref=slogin

U.S. pulls the trigger

2008-10-15T22:31:00.001-07:00

http://money.cnn.com/2008/10/14/news/economy/bank_bailout/index.htm?cnn=yes

Forclosures Decreased Statewide in September

2008-10-15T22:29:00.001-07:00

Foreclosures decreased statewide by 12.4 percent and notices of default decreased 61.8 percent in September, which some attribute to the state law that went into effect last monthrequiring lenders to work with borrowers who are struggling with mortgage payments.

GREAT NEWS!

2008-09-08T12:13:00.000-07:00

Great news on Interest Rates, Mortgage Bonds are soaring higher on this weekend’s announcement that Fannie Mae and Freddie Mac will come under control of the government. Meaning rates will be moving down and have already moved below 6%.
The government’s move to create a line of $200 billion to back all Fannie Mae and Freddie Mac loans at all costs is great news for homeowners. First, it ensures the continued liquidity of conforming loans nationwide and, second, it ensures that buyers of this type of Bond have a safe investment going forward. There’s no doubt that this will help the US housing market move through the current crunch that we’re in.

http://news.yahoo.com/s/afp/20080908/ts_alt_afp/useconomypropertyfinancecompany_080908144037;_ylt=Al3XGMxTUxwUcVgPvSfw6rOz1g4B

Just Listed/ Great Buy!

2008-08-20T15:07:00.000-07:00

Just listed: 2747 Tiburon

This is one of the best homes for the value on the market in Carlsbad... I am very excited to market this home, one of its greatest features is the PANORAMIC Ocean and Mountain Views. The owners have made this property shine with stunning hardwood floors.

Immaculate 4 bedroom 2.5 bathroom home. Featuring Panoramic Ocean & Mountain Views from large flat usable back yard. Newer hardwood floors throughout the 1st level, designer paint, molding, and window coverings. Large tile kitchen with island & breakfast nook, formal dining room, family room and living room create the perfect living space. Enjoy the endless views from almost every room in the house. Spanish style architecture, and professional landscape. Very private and quiet, yet close to all. Come enjoy the best Carlsbad has to offer. Call today to schedule your own private tour of this amazing home. Priced to sell!

For Anyone Who Purchased a home during the 2004-2006 boom this is a must read...

2008-08-18T10:54:00.000-07:00

Article Published by the LA Times Sunday August 17th

"Loving your house again
Forget the doom and gloom about a tanking market. You made a smart investment."

http://www.latimes.com/news/opinion/sunday/commentary/la-oe-ayres17-2008aug17,0,1698378.story

Tax Credit for 1st Time Home Buyers

2008-08-11T11:42:00.000-07:00

New benefit for 1st time home buyers...see link below for more info

http://www.federalhousingtaxcredit.com/faq.php#1

If it seems to good to be true look a little closer....

2008-07-17T09:00:00.000-07:00

It’s understandable that most people look for a bargain in today’s economy, and they will certainly find just that in the real estate market. If you type in foreclosure on your Internet search and you will get so many results it can make your head spin. If your just jumping into the REO market then there are some things you should be aware of, and if a deal sounds too good to be true, you need to look a little closer. Several website are posing only the amount of loan in default as a pre-foreclosure sale. This means that the owner is late on their payments by the amount posted; it does not mean that the home is actually for sale or that the owner will not be bringing the balance current and in addition to that if it were for sale, there would still be the entire balance of the loan due, not just the defaulted payments... See the story for more insight.
http://www.inman.com/news/2008/07/17/is-preforeclosure-really-sale

Lowball Offers on Bank-Owned Properties Wont Seal The Deal

2008-07-08T13:05:00.000-07:00

By NED RANDOLPH
San Diego Business Journal Staff
Bank-owned homes recycling back into the market after foreclosure are being priced well below market value in order to solicit multiple bids, which in some cases exceed their original asking price, agents and analysts say.
Brian Yui, chief executive officer of HouseRebate.com, which tracks listings of bank-owned properties — known as real estate owned, or REO, properties — says banks are underpricing properties and selling them much quicker than traditional home sales.
“The banks appear to be getting fair market value for their homes,” he said. “For buyers thinking to lowball REO listings, they must think again as there are other buyers out there willing to pay (fair market value).”
Foreclosures are skyrocketing as borrowers default on mortgages in record numbers — in many cases walking away from homes because their mortgages cost more than the homes are now worth.
Of all the home sales in San Diego County in May, 36 percent were bank-owned properties — homes that had been foreclosed by lenders in the prior 12 months and then resold, according to DataQuick Information Systems of San Diego.
Many of them sold above asking price, says Yui, adding that he noticed the trend while looking up comparable prices in Escondido of a bank-owned house he was considering buying for himself.

Real Estate Rebound by 2011? 2005’s Imperfect Crystal Ball

2008-06-30T06:55:00.000-07:00

In a not so simple economic sag, can we rely on the simple law of supply and demand to correct this housing market? With new construction starts at an all time low the inventory of resale homes will thin out over the next 3 years, making this 2011 prediction plausible. See the article for the full theory...
http://rismedia.com/wp/2008-06-25/looking-back-to-look-ahead-2005s-imperfect-crystal-ball/

Some Bad News and Some Good News

2008-06-28T09:49:00.001-07:00

There is no question that the housing market is in a price correction, but there is hope that with such a rapid decrease in values over the past two and a half years, we will reach stability quicker then in previous price corrections which lasted over six or more years due to a slower pace of decline... see the full article by Inman News below.
http://www.inman.com/news/2008/06/27/speed-price-correction-almost-unprecedented

PROPERTY TAXES DUE

2008-04-09T15:28:00.001-07:00

SECOND INSTALMENT OF PROPERTY TAXES MUST BE POSTMARKED BY TOMORROW TO AVOID A LATE PENALTY.

BUYERS ARE BACK and the MARKET IS MOVING!!!

2008-03-30T10:39:00.000-07:00

The media may not know it yet but those of us who are "knee deep" in real estate activities are seeing a HUGE upward swing in buyer activity. Whether it be the seasonal change, the stimulus, package, or simple the fact that homes are now affordable with a 30 year amortized fixed loan once again - HOMES ARE SELLING like we have not seen in 3 years, with MULTIPLE OFFERS ON HOMES PRICED COMPETITIVELY.

Friday, March 28th, I sat out in front of a home that reduced price the day prior, in the 15 minutes I was there preparing for my clients to arrive I had 3 car fulls of families I did not know show up and ask to see the home. Saturday March 29th, I had 10 homes lined up to show from 9:30am on, and at nearly each home we had a caravan of buyers and agents in the home already or waiting at the door for us to finish looking. 6 out of the 10 homes already had multiple offers on them. AGENTS ARE POSTING REMARKS ON THEIR LISTINGS "ALL OFFERS DUE BY ________, NO EXCEPTIONS", because they are so swamped with offers.

This is just a taste of the last 2 days, the upswing began about 3 weeks ago in which I have written over 10 offers for a mix of clients on properties that all had multiple offers and sold over asking price.

Homes that are priced competitively are selling with anywhere from 5-15 offers and going over the asking price. Condos are a little slower moving.

No one can say that the real estate slump is over, but for now there seems to be a lot of buyers with a new found confidence in the market.

San Diego Home Stats

2008-03-26T15:59:00.000-07:00

In October 2007 there were over 21,000 ACTIVE homes on the market with only 1,900 PENDING.
That’s 9% of all active listings.

TODAY (March 26, 2008)…there are 18,810 ACTIVE homes on the market, with 4,516 PENDING.
That is an increase to 24%, of all active listings, are PENDING!!!

Options for Buyers with no money down

2008-02-28T21:22:00.000-08:00

Seller Assisted home buying
Sellers helping home buyers cover down payment and closing costs
Potential home buyers who can make a house payment with no difficulty sometimes can't buy a house because they don't have the funds required for a downpayment and closing costs. One solution to the problem--use a downpayment gift assistance program, sometimes called a downpayment grant program.
How Downpayment Gift Assistance Programs Work
A little bit of background first. Home sellers can help buyers pay closing costs by giving a portion of their proceeds back to the buyer at closing. The amount of seller assistance that's allowed depends on the type of loan the buyer is getting.
Sellers are not allowed to give home buyers downpayment funds. That's where gift assistance programs step in, providing a "work around" of those laws.

The seller enrolls their house in a suitable program and contributes an amount equal to the assistance their buyer will receive at closing--plus a fee. (Most Web sites that disclosed the fee stated that it's 0.75% of the home's sales price.)
When the transaction closes, the downpayment funds are wired from the gift assistance program to the closing agent. The seller has no part in the transfer of funds.
Does HUD Approve Gift Assistance Companies?
Yes and no. Here's what HUD says about the programs:

"HUD does not approve gift programs administered by charitable organizations and, thus, will not offer a formal approval of your program. Mortgage lenders are responsible for assuring that the gift to the homebuyer from the charitable organization meets the instructions described in HUD Handbook 4155.1 REV-4, CHG-1 Paragraph 2-10(C) (e.g., no repayment implied, etc.). Those charitable organizations that comply with existing regulations and policy guidelines are permitted to give cash gifts to eligible homebuyers and do not need prior FHA approval to do so."
So HUD does not issue formal approvals for gift programs--it puts the burden of working with a legitimate program on the lender. The major programs all appear to comply with HUD's requirements. Your lender can verify that the program you choose is one that is acceptable.
FAQ About Downpayment Gift Assistance Programs Program guidelines may differ slightly, but they all offer the same basic services.

Home buyers must qualify for a loan that allows gift funds.

There are no minimum or maximum income requirements for buyers, but there may be top limits set on the sales price of homes.

Typical assistance seems to range from 1% to 7%.

Funds can be used for the downpayment and for closing costs.

Gift funds can be used for new or existing homes.

Unused funds must be returned to the gift program.

Assistance programs cannot be used to refinance a house or to make home improvements.

Sellers cannot use the gift as a charitable contribution, but it may be deductible as a selling expense. Talk to a tax professional.
Why Would a Seller Want to Participate
Home sellers usually price their homes to include some negotiation space. What matters to a seller is his bottom-line--how much money he takes away from the closing table. A buyer who has the funds to close may get a better deal on the house, while a buyer who needs help will pay closer to (or more than) the asking price, but in return can negotiate help from the seller.
One thing you must keep in mind is the home's appraisal value. The lender will not allow gift funds that result in a loan that exceeds the appraised value of the home. If you're working with a real estate agent, she can help you determine if the home is realistically priced and will appraise where it should.
Your lender can help you choose a downpayment assistance program and explain how your offer to purchase should be worded to ensure compliance with its underwriting guidelines.

Community Home Buyer Programs: ACORN

2008-02-28T21:19:00.000-08:00

Many homeowners are struggling to keep up with escalating payments on their mortgage loans, and feel as if they have fallen over the edge of a financial abyss.
I have written about this program before, but failed to stress it as a refinancing vehicle that might rescue many homeowners from financial ruin. At the same time, it might also help ease some of the strain on the financial markets.
Though loan limits vary from state to state, the basic guidelines for Acorn Loan program qualification remain much the same. In California, for example, maximum qualifying income is $92,000 and mortgage loan cannot exceed $500,000. To see what your state guidelines are, check with either Chase Mortgage or Bank of America Mortgage directly. It is my understanding they are the only two mortgage lenders funding these loans--and that they cannot be brokered.

The California qualifiers:
Applicant’s adjusted gross income less than $92,000 per year
Home loan must be less than $500,000
Applicant can only own one parcel of real estate.
An excellent tool for refinancing (out of riskier mortgages, perhaps?)
The California home can be purchased for more than $500,000, but the mortgage loan amount cannot exceed that amount.
Potential borrower(s) must attend a one day home ownership class, where a certificate of eligibility will be issued after having met with an Acorn counselor.
The benefits?
Below-market rate with no points.
No PMI (private mortgage insurance)
Very liberal debt-to-income ratios.
Very low down payment required (0-5%)
Underwriting will credit some “cash” income and alternative sources of credit.
Credit and FICO scores are not as important with the ACORN Loan as they might be with other financing.
No pre-payment penalties.
No loan points
100% financing available.
One program offers 10-year interest-only loan that automatically converts at same rate to fully amortized 30 year loan.

2008 is the should, would of, could of market that your grandparents told you about

2008-02-27T15:07:00.000-08:00

As an investor, have you ever thought to yourself: Gee, I wish I had bought that stock a couple of years ago, when it was so cheap? With fire-sale prices at auctions in southern California -- and banks begging buyers to take defaulted houses off their books -- is this one of the best times in 30 years to begin assembling a rental real estate portfolio?
Read the full story (below)

http://realtytimes.com/rtpages/20080222_investorreport.htm

Real Estate Outlook: Positives Taking Shape

2008-02-21T15:57:00.000-08:00

If you're looking at housing statistics over the past quarter or year, there's no question you're going to come up with a lot of negatives.

But if you look ahead -- there definitely are some positives taking shape.
No one is predicting any quick turnarounds or sudden bursts in sales, but think about these facts:

Thirty-year mortgage rates continue to be in the mid to upper 5 percent range -- among the lowest in half a century. If they stay low, most economists agree they will stimulate home sales.
Federal Reserve chairman Ben Bernanke told Congress last week that he is committed to lowering short-term rates even further to help stimulate the economy -- and hinted that the Fed could cut rates another half point in mid March.
The new, higher mortgage maximums for Fannie Mae, Freddie Mac and FHA will kick in by mid-March and should help thousands of first-time buyers in high-cost markets like California and the Northeast and ultimately help clear out some of the unsold inventory clogging those areas.
Combine low-cost money with sharply lower prices and at some point, you hit bottom -- flatten out -- and sales begin to pick up.
Downcycles aren't forever, nor are upcycles.

http://realtytimes.com/rtpages/20080221_realestateoutlook.htm

The Real Risk Is in Waiting to Buy a Home

2008-02-20T15:02:00.000-08:00

Commentary by Sherman D. Harmer of the San Diego Business Journal
Remember not that long ago when home sellers were calling the shots — dictating prices and terms to multiple bidders who were knocking down their doors in many markets?
Well, today, with the slowdown and changes in San Diego’s real estate market, all the market fundamentals show that buyers are now in the driver’s seat.
Consider the facts: Prices are competitive, interest rates are very affordable, there are plenty of homes in all price ranges to choose from and sellers are ready to bargain.....(Read the full article here) http://www.sdbj.com/article.asp?aID=43025513.6689875.1583244.2056042.8754781.464&aID2=121779

CASH ON SALE!

2008-02-19T14:53:00.000-08:00

When you purchase real estate using a mortgage you are buying not only the home, but the money to buy the home as well.
When rates are down money is technically on SALE. Here is a quick example of what this means in terms of payments and purchasing power.

-Interest Rates at 6.5% on $400,000 equal a payment of $2,528
-When rates drop to 5.5% on that $400,000 loan your payment is now $2,271
-The difference in the rates is like getting a $41,000 price concession on the home, (your payment at 6.5% would be $2,271 on a $359,296 Purchase, a $41,000 effective savings)

More loan servicers agree to put foreclosures on hold

2008-02-19T14:45:00.000-08:00

Loan servicers and lenders who handle about nine out of 10 subprime loans have agreed to participate in an initiative to help delinquent borrowers by putting foreclosure proceedings on hold for up to 30 days to evaluate alternatives. Click on the link below for the full article
http://www.inman.com/hstory.aspx?ID=66147

President signs economic stimulus bill, which includes raising conforming loan limits

2008-02-13T13:14:00.000-08:00

President Bush today signed off on the $168 billion stimulus packaged approved by Congress last week, which, in addition to tax rebates for millions of working Americans and business owners, includes a vital, but temporary increase in the conforming loan limits up to $729,000 in higher cost areas (here link for more info) http://www.car.org/index.php?id=MzgyNTI=
This is very helpful to the market... loans over $417,000 were considered jumbo prior to this, automatically increasing the interest rate by roughly 1%. On a $600,000 loan that lowers a payment by $500+ per month! It may take a little while for the effects of it to be seen in the market but it’s a boost we really needed.
The stimulus package also will deliver tax rebates of $600 to $1,200 to taxpayers, and $300 checks to disabled veterans, the elderly, and other low-income people.

Best of Bay Park!

2008-02-11T13:55:00.000-08:00

Incredible Bay Park living with sprawling Bay views, situated on a quiet & desirable cul-de-sac location. Large home with over 2,000 square feet, 3 bedrooms plus large den/office, 2.5 baths. Upgraded throughout; Verde Marinachi granite kitchen with exceptionally designed cabinetry. Travertine baths, maple hardwood floors throughout, and newer dual pane windows. Open living space, large family room with fireplace and a wall of french doors opening up to the lower level terrace. Enjoy Sea World fireworks nightly from the over-sized master bedroom featuring panoramic bay views and the just recently built spacious sun deck. Newly painted exterior, professionally landscaped front and rear yard, spa, and quality built Lily pond with a tranquil waterfall surrounded by mature palm trees. Several recent upgrades. Very private location, yet close to all! Offered At $860,000 http://www.3642lloydterrace.com/

Property Tax Relief

2008-02-11T13:03:00.000-08:00

Property tax relief process offered by assessor’s office
Homeowners whose property’s market value has fallen below its assessed value can seek property tax relief, according to the San Diego County Assessor’s Office. This generally only affects those property owners who purchased their property at the height of the current real estate market. Owners should file an Application for Review of Assessment as soon as possible, but no later than May 30, 2008