Or is it!  Will it become the latest Urban Myth!

My last post on this subject  http://activerain.com/blogsview/1159459/where-s-the-reo-listing-didn't really get much comments.  Maybe people don't understand what I am talking about, or maybe you just don't care.  For those who care and don't know what the heck is "shadow inventory" here is a blog about how it's used: http://www.huffingtonpost.com/jonathan-miller/manhattan-real-estate-mor_b_229361.html.  Jonathan Miller is a co-founder and President/CEO of Miller Samuel,  in his blog: http://www.huffingtonpost.com/jonathan-miller/manhattan-real-estate-mor_b_229361.html.  He gives a good definition of "shadow inventory!"

"A developer [owner] does not usually offer up all available units for sale as a marketing technique to create urgency.  This inventory type is comprised of units [properties] ready to be listed for sale but are withheld because of weak market conditions."

If the banks are using "shadow inventory as a marketing technique, does anyone think that this might backfire on them?  How long can they keep this "shadow inventory" off the market?  Or does this "shadow inventory really exists?

What are your thoughts on this or do you even care?

Here are some other blogs that fellow active rain associates have written about this topic.  I guess it might not be real since I only found 10 blogs and one of them was my previous one!

The first one that comes up is: 

This one doesn't really dive in to ‘shadow inventory but it's interesting! 

 This one talks about the California' mess:

  This one is good, how true it is-who knows:

Anyway, if you want to read more blogs about this subject-you know what to do! (Hope the links work--I'm a little rusty, been away for awhile.)

What are your thought about this or do you even care or know what I am talking about.

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To search the MLS for free visit my website at: http://www.reolicensedspecialist.com.  Send me an email at PintoRealty@yahoo.comand I can email you a free list of Bank owned properties (REO's) or Short-sales, distressed/pre-foreclosure homes currently listed on the MLS.

 

 I just got an email from this Bank, and it looked so official. Please be advise that if you get an email from them, it might be a scam or it might be legit, proceed with caution.  The email I got was a total scam-I called them and they told me. 

As you know I started a group called:  Real Estate Fraud, Scams and Ponzi schemes REPORT THEM HERE http://activerain.com/groups/FraudAlert

And, that was way before I even heard of Bernie Madeoff!  Go Figure!   Anyway, because my area has been inundate with such schemes, and scams, I wanted to help uncover and get rid of these Scoundrels.  I love my profession and I would like to help clean it up!  

The more you are informed the less these types of scams will be successful.  We should all do our part-let's help each other out.

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To search the MLS for free visit my website at: http://www.reolicensedspecialist.com.  Send me an email at PintoRealty@yahoo.comand I can email you a free list of Bank owned properties (REO's) or Short-sales, distressed/pre-foreclosure homes currently listed on the MLS.

Disclaimer: This is just for informational purposes, and it is not intended to provide tax or legal advise.  I am a real estate professional and broker for over 20 years and this is just my opinion. I am not an attorney nor a tax accountant. 

For more information about how the sale or purchase of a home affects your tax situation or for assistance for your particular matter, please consult with a appropriate professional.  If you are not currently working with another broker, please call me to see how I can help you with all your real estate needs.

 

 

The Good, Bad and the Ugly!  I found this pretty good blog, only it's for a Bed and Breakfast transaction but you could pretty much get the gist of what seller financing is: http://www.bbteam.com/Article128.html 

Here's a summary: The Good

Probably the biggest benefit of seller financing is that it can be simple [the operative word here is: "can be" not that it is].  The buyer makes a down payment and the seller provides the first mortgage to the buyer.  Seller financing can be flexible [well at least more than your typical bank]. The repayment terms can be negotiated between the buyer and seller in order to make the transaction work.  Seller financing also broadens the pool of potential buyers. Seller financing may enable a sale to be completed where the buyer is able to get a traditional mortgage but there is a gap between the sale price, what the buyer has for a down payment and what the lender will lend.  [There's more to this, so I suggest you read the entire blog: http://www.bbteam.com/Article128.html ]

The Bad

The primary disadvantage of seller financing, especially if the seller provides the whole mortgage, is that the seller only gets a minimum amount of cash at closing - the buyer's down payment. The majority of the sellers' money is still tied up in the property, even though they are now receiving mortgage payments from the buyer. By financing the mortgage, the seller no longer has to worry about the 24/7 life of the rental property, yet they are not completely free of the property until the buyer pays off the mortgage. In addition to getting less cash at closing, the seller still retains some of the risks of owning the property.  [Again go to: http://www.bbteam.com/Article128.html for more information.]

The Ugly

How can seller financing be ugly?  Well for this you'll just have to read the entire blog: http://www.bbteam.com/Article128.html  

Seller financing can be a win-win situation for everyone involved, especially in a hard to finance property or in areas where financing has dried up.  But please proceed with caution-there are risk and you should understand them and ensure that your transaction is structured correctly.  Any transaction handled by someone who is less than knowledgeable in this matter can have disastrous results, but structured correctly, it can be, sometimes, your only solution.

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To search the MLS for free visit my website at: http://www.reolicensedspecialist.com.  Send me an email at PintoRealty@yahoo.com and I can email you a free list of Bank owned properties (REO's) or Short-sales, distressed/pre-foreclosure homes currently listed on the MLS.

Disclaimer: This is just for informational purposes, and it is not intended to provide tax or legal advise.  I am a real estate professional and broker for over 20 years and this is just my opinion. I am not an attorney nor a tax accountant. For more information about how the sale or purchase of a home affects your tax situation or for assistance for your particular matter, please consult with a appropriate professional.  If you are not currently working with another broker, please call me to see how I can help you with all your real estate needs.

 (I'm asking almost like that little-ol'-lady in that hamburger commercial "where's the beef!"     

 

How real is the shadow inventory?  I was reading a blog about this, and the writer said: "banks all across the nation are keeping foreclosed properties off the market. They're doing it on purpose, to fudge the statistics and make it seem like everything's alright."

The San Francisco Chronicle:

Lenders nationwide are sitting on hundreds of thousands of foreclosed homes that they have not resold or listed for sale, according to numerous data sources. And foreclosures, which banks unload at fire-sale prices, are a major factor driving home values down. "We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market," said Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures. "California probably represents 80,000 of those homes. It could be disastrous if the banks suddenly flooded the market with those distressed properties. You'd have further depreciation and carnage."

How accurate are all these reports?  Do you agree with these reports? What say you?

Now, I've been noticing that the "foreclosures" statistics don't reflect the MLS stats.  I've often wonder where are all those foreclosures: "Where's the REO Listing," because they're not listed on my MLS. 

Are banks really holding on to these REO's because the don't want to flood the market?

Are they selling in  "bulk sales?" 

Is there really a big shadow inventory out there somewhere?  I think there is!  What are your thoughts? I would love to hear from other agents who are frustrated with this "shadow inventory" conspiracy theories. 

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To search the MLS for free visit my website at: http://www.reolicensedspecialist.com.  Send me an email and I can email you a free list of Bank owned properties (REO's) or Short-sales, distressed/pre-foreclosure homes currently listed on the MLS.  Feel free to call me at (56) 916-3237 to discuss how I can help you find your next home.

 

¿Su casa no vale lo que le debe al banco? ¿Tiene preguntas sobre que hacer? ¿Es mejor hacer una venta corta (Short Sale) que embargo (foreclosure)? Depended de su situación. ¿Que es la diferencia entre un Venta Corta (Short Sale) y Foreclosure? ¿Como me afecta mi crédito? Hay una gran diference entre estas doce metotas, es importante que usted sepa come le va afectar su decisión. ¿Puedo hacer una modificaron de prestamos? ¡Quizás sí se pueda! ¿Puedo salvar me casa con una bancarrota? quizás! llame al Estas son preguntas que usted debe saber la respuesta antes de hace una decisión que le puede afectar negativamente. Educose sobre sus opciones. Llame a la Broker de bienes Raíces Aida Pinto. Ella tiene 22 años de experiencia ayudando a la communitada Hispania con todos los asuntes sobré Bienes Raíces. Si usted vive o tiene una propiedad en las ciudades de: Alhambra – Arcadia – Artesia – Azusa - Baldwin Park – Bell - Bell Gardens – Bellflower - Carson – Cerritos – Commerce – Compton – Covina – Cudahy - Culver City - Diamond Bar - Downey – Duarte - El Monte - El Segundo – Gardena – Glendale – Glendora - Hawaiian Gardens – Hawthorne - Huntington Park – Industry – Inglewood - La Mirada - La Puente - Lakewood – Lancaster – Lawndale - Long Beach - Los Angeles - Lynwood – Maywood - Monrovia – Montebello - Monterey Park – Norwalk – Palmdale – Paramount – Pasadena - Pico Rivera – Pomona – Rosemead - San Dimas - San Fernando - San Gabriel - Santa FE Springs - Sierra Madre - Signal Hill - South El Monte - South Gate - South Pasadena - Temple City – Torrance – Vernon - West Covina - West Hollywood - Whittier Llame a Aida Pinto—Real Estate Broker y Notary Public (562) 916-3237

This saying comes to mind this morning as I listen to the House of Representatives Financial Services Committee hearing on c-Span.

The Treasury Secretary Henry Paulson, Federal Deposit Insurance Corp Chairman Sheila Bair, and Federal Reserve Chairman Ben Bernanke all were there.  

Here is some of what was said:    Mr. Paulson said: "This financial crisis is unpredictable and difficult to counteract,".....we concluded it was only prudent to reserve our ... capacity, maintaining not only our flexibility, but that of the next administration.".......Some $290 billion of the first $350 billion authorized under the program already has been used or committed for use."  Mr. Paulson wants to reserve the balance of it for the incoming administration.  What's up with that!

Mr. Bernanke said: "........there were some signs of a return to more normal conditions in credit markets but conditions were still unsettled and many banks continued to restrict their lending throughout October."  I ask my self: What signs?

 

Ms. Bair, apparently is the only one that knows what she's doing!  Her programs are working, so they say!  

Why don't Mr. Paulson and Mr. Bernanke ask her for advice? 

My question is: What are signs of a return to more normal conditions?  Exactly how has the bailout help?  I can't seen how!  Can you?

I say it again,

Never have so many done so little for so few!

Are you hiring that agent because he/she is a "top producer?" 

 If you are........please read this first and think twice!

Does your agent play the "numbers game?" 

Hiring a so-called "Top Producer" won't get your home sold faster.  "Top Producers" are in the "numbers game!"  You know they......list hundreds of properties in hopes that half will sell!

So you should be asking:   "what is his/her "closing ratio?"

When you hire me........ you don't get hype, sound bites, or lines--you get the truth.  And if the truth is not what you want to hear--I will say it anyway!  And if you don't like what you are hearing, then I will kindly suggest you find another agent.  I have always considered myself a Real Estate advisor and counselor and not just a sales agent.  When a client hires me, he/she hires me to explore all the options available to them and guide them through the process of buying a home or selling their property.

I don't play the "numbers game"..........you know, take hundreds of listings and hope that half will sell.

When I list a property-I intended to do what you hired me to do.....that is to SELL IT!  When you hire me as your Buyer-Broker--I intend to do what you hired me to do--find you your next home!

Many real estate agents will try to open as many escrows as possible and if 50% close---well, that's good enough for them---but a 50% closing ratio is not good enough for me!  What about the other 50%--they deserve service.  I am proud to say that I have a 99% closing ratio.   I would have a 100% Closing Ratio but sometimes there are circumstance that no one can control:  like, the buyers getting fired from their jobs, unstable lending guidelines, and even natural disasters can cause a transaction not to close.   While there are many circumstance no one can control--they can be mitigated and sometimes, with a savvy real estate agent, can even be saved.

My motto is:  "I never open an escrow I can't Close!"  If you open an escrow with me--you bet it's going to close!  Many real estate professionals are very good at getting people to sign a contracts, which is only half the job, but very few have closing skills to take the transaction to final step....To Closing.

And ultimately, that is why you hired me--to close the transaction."  

How?  By lowering your property tax bill!  How? By getting your property re-evaluated by Tax Assessor!  You might be able to reduce your property taxes as much as 50% or even more! Did you know that you can do that?   In California we pay property taxes based on the purchase price, so if you purchased at the height of the market you can get your property re-assessed/re-evaluate.

If you purchased a home in California and your area is experiencing a decline in value, you can request for the Los Angeles County Assessors to re-evaluate your property to a lower assessed value.   Thanks to Proposition 8 which amended Proposition 13.

............ "Proposition 8, passed in November 1978, amended Proposition 13 to reflect declines in value. As a result,..........requires the Assessor to annually enroll either a property's factored Proposition 13 base year value or its Market Value as of January 1 (lien date), taking into account any factors causing a decline in value, whichever is less....... reductions are temporary....... "When and if the market value of the previously reduced assessment (Proposition 8) increases above its Proposition 13 factored base year value, the Assessor will once again enroll its Proposition 13 factored base year value. Proposition 8 values can change from year to year as the market fluctuates up and down........"

For instance if you purchased a home for $600,000 your tax bases is 600,000 X .0125 which would make your yearly tax base amount $7,500.

If you get your property re-evaluate to, let say $300,000 X .0125 your property taxes would be cut in half to: $3,750.

Go to the Los Angeles County Assessor's website.  There you will find all the forms and instructions necessary to have your property reassessed/re-evaluated.

You must file the form:  "Decline-in-Value Reassessment Application (Prop. 8)" and provide comparable sales-there's a link where you can get comparable sales.

Tax Assessor's website: www.assessor.lacounty.gov.assessor.lacounty.gov.assessor.lacounty.gov

Please feel free to visit by my website

 

Buying a home at an Auction or making a Traditional Offer--which is better?

Are you interested in purchasing a home and thought that buying at an Auction would get you a better deal!

Well, maybe---maybe not!  You are taking a big step--you could say it might be one of the biggest steps in your life!

Why would you buy a home like you would a car     

 or a Tiffany Lampor even bottle of wine  

-does that make sense to you?

There's nothing wrong with buying a home at an auction--if you don't mind over paying and getting under represented! Remember that at an Auction--you are at the Seller's mercy, and you run the risk of getting over emotional and paying more than you should. And don't forget about the hidden fees these auction place charge.

Don't get me wrong, I love auctions but not to buy real estate.  I have attended many auctions and always see the same thing; people getting wrapped up in the euphoria and excitement that they throw out all logic.  These Auction places make it sound easy and exciting---but is it?  You are making the most important purchase of your life-unless you happen to be an investor and for you buying homes is like buying a pair of shoes! 

But if you are a first time buyer or move-up buyer-be cautious.  Think Twice!

Currently there are 1,615  Active listings in Long Beach, CA.

The SoCalMLS has 14 different categories called "special conditions"  which are Auction, Bankruptcy, HUD/Govt. Owned, In Foreclosure Process**, Notice of Default**, Probate, Red-Tagged**, Relocation Corporate Owned, Short-Sale/Subject to Lender Approval, Subj to REO Company Approval, Subject to Court Approval and NONE (which are regular sales).

This report focuses on the REO and short Sale listings, if you would like the statistics for the other "special conditions," please let me know.                                                                                     

Out of the 1,615 Active listings 957 listings were with no special condition, which means that 59% of the active listings are under the "regular sale" category.  Leaving 658 Active Listings under the "Special Condition" category. Meaning that 40.5% of Active listings fall under a "Special Condition."

Here is the breakdown of all Active Listings under each "Special Condition: 

Short Sales Active Listings:                         Total Number:  404

 25% of all Active listings in Long Beach, CA were under a Short-Sale "special condition" category. 

 REO/Lender Owned Active Listings:         Total Number: 218

13.5% of all active listings in Long Beach, CA were REO/Lender Owned.

If you have a portfolio of properties in a different city/area, and would like the statistics, I would gladly provide the information to you.  Please feel free to call me at 323-357-9300 or cell 562-884-6196. I hope this information has help you in analyzing the state of the Real Estate Market in Long Beach.

The NOD and In Foreclosure categories were not included in this report because what is listed on the MLS is not reflective of the actual foreclosure activity in Long Beach, CA.  The actual numbers of foreclosures and NOD's far exceed what is listed in the MLS-because there are a number of foreclosures that do not get listed on the MLS for various reasons.  If you would like the actually numbers of foreclosures, I can research the tax records, and would be more than happy to provide this information, upon your request.

Although this report was prepared with the utmost care and data obtained from the So cal MLS system is deed reliable it is not guaranteed.  This report is for general information and for more specific data or report for your area, please feel free to contact me.  To search the MLS, please feel free to go to my website:  ReoLicensedSpecialist.com.