Finally! For those of you who read my blog recall my recent blog post on buying a foreclosure and not receiving your keys until the day after it closes, it appears that the California legislature has taken a stab at the heart of the problem, which was the fact that buyers were not allowed to pick their own escrow companies in these transactions. Banks would hire title and escrow companies to complete their foreclosure proceedings and when they turned around to sell the property as an REO, they would compel the buyer to use that same title/escrow company to complete the purchase.

Often, those companies would offer the banks a discount for the repeat business, but some of the fees charges to buyers were excessive. The problems were due mainly to the fact that these title companies were no longer accountable to both sides in the transaction. In addition, their workload was very high while even the local offices of the same companies sat around with little or no work. Commmon courtesy, reasonable fees, and familiarity with local county recorder's customs went out the door as escrows were outsourced to Lancaster, San Diego and Pasadena, to name a few.

Effective immediately, the new law requires that if a buyer chooses to use the seller's escrow company in a foreclosure purchase, that they be given written notice of their right to choose another company and that their choice will not affect whether or not they can buy the property. Bravo! This will certainly make a difference, as I can advise my clients as to the worst of the worst of these companies and they can choose to avoid them, and also because it now gives all those companies an incentive to return to customer service - so maybe they will return to basics and begin answering the telephone again and doing their job! Only time will tell if this law has enough teeth, but I am happy to see this step in the right direction. I just got my first escrow choice disclosure for a new REO deal today!

(December 1, 2009)  Lake Marie Estates is a secluded enclave of executive and luxury homes in Orcutt, California, located east of Highway 101, off the Clark Avenue exit. When exiting 101 on Clark, instead of heading west toward downtown and Old Town Orcutt, head east toward the vineyards and wineries. Lake Marie offers a truly rural setting that is just minutes away from shopping and other conveniences. For those who wish to commute to Vandenberg Air Force Base, Lake Marie is about a 20 minute drive to the main gate. Due to the development's elevated position, homes in Lake Marie offer exceptional views of the Santa Maria Valley and residents claim they enjoy a microclimate that is even more pleaseant than the rest of the remarkably pleasant Central Coast. Homes in Lake Marie sit on quarter acre to three quarter acre lots and the homes are as massive as 5000 square feet in size. Smaller homes in Lake Marie begin over 2000 square feet.

Looking back six months, there have only been three sales reported in Lake Marie Estates on the MLS. The recent sales range from $510,000 - $865,000. The most recent sale was a 4000 sq. ft. custom home, built in 2006, which sat on over two thirds of an acre and sold for $865,000. In August, a 2300 sq. ft. home built in 1965 with 4 bedrooms and 3 baths sold for $520,000. Currently listed homes range from $677,000 - $817,717, and include a 3100 sq.ft. home on a quarter acre lot with an asking price of $699,999. If you are in the market for a luxury or executive home in Santa Maria or Orcutt, the Lake Marie Estates development should definitely be explored.

Click and search here for currently listed homes in the Lake Marie Estates area. If you would like a list of homes available in Lake Marie, or in Orcutt generally, send an email to me at tni@mintprop.com, give me a call at (805) 878-9879, or feel free to search for homes on my website: www.iLoveOrcutt.com.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveOrcutt.com
www.SellMyOrcuttHome.com
www.BuySantaMariaForeclosures.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

 
Foxenwood Garden Villa Townhomes in Orcutt, CA

(November 30, 2009) The upscale Foxenwood neighborhood is popular with buyers due to its location, which is directly adjacent to Old Orcutt, and its proximity to Vandenberg AFB (15 minute drive to the main gate). The location of the development is off the beaten path, yet close enough to enjoy the amenities of downtown Orcutt. And, the Foxenwood neighborhood is bordered by other prestige areas such as Lorraine Estates, Deerfield Estates, and the new "Old Mill" development. It is not unusual for home sellers in Foxenwood to throw in a complimentary membership to the Foxenwood Swim & Tennis Club with the purchase of their home.

Asking prices for homes in Foxenwood currently range from about $400,000 to $700,000, with the median at around $500,000 for a 2400 sq. ft. home. Resale townhomes in Foxenwood sell for about $300,000. In the past six months, 11 home sales have been reported in the Foxenwood area, ranging from $400,000 - $555,000, and averaging about $481,000. Just this month on 11/13/09, a 2700 sq. ft. home on Burlington sold for $495,000 after 95 days on market, and on 11/18/09, a 1961 sq.ft. bank owned home on Quail Ridge Drive sold for $415,000 after only 15 days on the market. Smaller homes and distress sales (short sales and REOs) are predictably ranging lower around $400,000 - $450,000, and "regular" sales, where homes tend to be better maintained and upgraded are selling between $450,000 - $550,000.

Click and search here If you would like a list of homes available in the Foxenwoods neighborhood, or in Orcutt generally, send an email to me at tni@mintprop.com, give me a call at (805) 878-9879, or feel free to search for homes on my website: www.iLoveOrcutt.com for currently listed homes in the Foxenwoods area.

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Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveOrcutt.com
www.SellMyOrcuttHome.com
www.BuySantaMariaForeclosures.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Prospective home buyers should always check with the local school boards for updates to school boundaries.

Foxenwood Garden Villa Townhomes in Orcutt, CA

There were 16 home and condo sales in Los Alamos, CA in 2009. Sales are down from the 20 homes that were sold in 2008. Overall, average prices are also down from 2008, when the average sale price was $417,000. In 2009, the average sales price was $353,000 with 117 days on market at $208 per square foot. Days on market are up as the 2008 average days on market was 95. Price per square foot was about the same as 2008, when it was $209, so only $1 less per foot in 2009. The least expensive sale was a 3 bedroom, 2 bath home built in 1974 on a .23 acre lot (a short sale) which sold for $237,500 in April 2009. The most expensive sale was a REO property (foreclosure), a 4 bedroom, 2 bath, 2100 sq. ft. home on Foxen Lane built in 2007 which sold for $500,000 in June 2009.

Looking at the foreclosure market in 2008, 70% or 14 of the 20 sales were bank owned properties or short sale - 12 REOs and 2 short sales. In 2009, that figure is about the same with 11 out of 16 sales being foreclosures or pre-foreclosures. However, there was a slight decrease in REOs (only 4) and increase in short sales (7 total). In 2009, average price of foreclosed homes in Los Alamos was $375,000 with 43 days on market at $207 per square foot. And, the average price of short sales in Los Alamos was slightly lower at $340,000 with 193 days on market and $196 per square foot.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.MintProp.com
www.iLovetheCentralCoast.com
www.SellMyCentralCoastHome.com
www.CentralCoastRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

If I had to say three things Santa Maria California was known for it would be strawberries, tri-tip barbeque, and now its wine country:

 • Strawberries are honored at the yearly Strawberry Festival. And although the number of strawberry stands has decreased over the years, you can still get some of the best strawberries in the country from Santa Maria fields.

• As for barbeque, well, it took awhile for me to realize that barbeque was a big deal here. My mom is from Texas, and for me barbeque ain't barbeque unless there is sauce on it. Santa Maria barbeque is a different kind of animal. No sauce, red oak, salt and pepper. That's Santa Maria style. Just take a run down Broadway on Saturday or Sunday and follow the smoke and you'll find some. Barbeque lunches and dinners are a fundraising favorite for almost every type of organization in Santa Maria and Orcutt.

• "Wine Country" is a relatively new moniker for the Santa Maria Valley, although the wineries have been here for years. However, after the movie Sideways, our region really began to be known for its grape juice. Now you can't go anywhere in town without hearing about a new wine tasting room or vineyard popping up.

2009 may go down in history as the year of the loan modification - that's all anyone is talking about these days. And every week I speak to local homeowners who are frustrated with the process of obtaining a loan modification. I know there are a lot of people out there that claim they can guarantee results, etc. However, I am doubtful of those claims. And in my experience, whether you will get a loan modification depends mainly on who your lender is (servicer) and who the investors are behind the loan. Since you already have the loan and are in a bind (i.e. can't refinance), you can't do anything about who your lender is now; who you have is who you have. Some lenders are reaching out to their borrowers and have modifications wrapped up in a week or less. However, I have spoken to homeowners who have spent 18 months working through their lender's system only to be rejected for the second or third time.

If you've already been through the paces and haven't been able to work out a loan modification, you may want to consider a short sale if you are behind in your payments and facing foreclosure. A short sale may be more advantageous for your credit than foreclosure. Specifically, you may be eligible to obtain an FHA backed mortgage 3 years after a short sale. And importantly, even if you don't qualify for a loan modification with your lender, you may still be able to qualify for a short sale. If your lender has already rejected your loan modification request, you should consider a short sale before accepting a foreclosure. Call me at (805) 878-9879 today for a short sale consultation.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveLompoc.com
www.iLoveSantaMaria.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

* This blog does not offer legal or tax advice; buyers and sellers should consult with their own attorneys and tax advisors before entering into a short sale.

There is intense competition for homes in the Santa Maria and Lompoc markets, especially for homes priced under $300,000. There simply aren't enough homes for interested buyers. It is not unusual when competing for a home to go up against 12 - 15 other buyers. And, some are pulling no punches when it comes to asking price. Recently, a buyer bid $50,000 over my client's offer on a bank owned (REO) home. The bid was clearly outside of what the home was worth and it would not have appraised at that price. However, the buyer and their agent were counting on the home not appraising for the price they offered. They probably wanted to win the bid and then use the appraisal to get the seller to adjust the price.

This is a risky strategy on REOs as some banks have taken to countering buyers with a clause making them acknowledge that they will not adjust a purchase price downward because of an appraisal. Overbidding can also be a time waster on short sales because any adjustment to the purchase price has to be cleared with the bank which could start the entire clock over again waiting for the bank to approve the new appraised value. But, most importantly, it is risky because you don't know what the appraised value will be. This particular buyer was taking a big risk because there were still new homes selling close to this home, and an appraiser could have justified a price about $30,000 over my client's offer by using new home comps. But, then that buyer would have been paying the price of a new home for a foreclosed one, which doesn't make much sense. The home still needed some work to bring it back to its full potential. Luckily, in that case, the listing broker suspected foul play and asked that buyer for proof of funds on their overblown offer, and they could not provide it - so my client ultimately got the bid.

There are other better methods to employ to have success in today's bidding wars, rather than counting on an appraisal to save you from an unrealistic bid. The first is to work with an experienced agent. Please call me today for a list of the latest foreclosed properties in Santa Maria, Orcutt, Lompoc & Vandenberg Village. I can be reached by phone at (805) 878-9879, and by email at tni@mintprop.com. You can also search for properties on my website: www.BuyCentralCoastForeclosures.com.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLovetheCentralCoast.com
www.SellMyCentralCoastHome.com
www.BuyCentralCoastForeclosures.com
www.CentralCoastRealEstateSearch.com

Private Park at Edgewood

The Edgewood Homes in Orcutt are a delightful collection of one and two story homes just west of Bradley Road and north of Union Valley Parkway, adjacent to the Oak Knoll neighborhood and St. Joseph High School. These homes are located in the Orcutt school district and are a 20 minute drive to Vandenberg AFB. They were built in the mid to late 1980's and range in size from 1300 sq. ft. to 1800 sq. ft. The development includes a private park that is gated and for the use of residents only. Homeowners association dues are approximately $100 per quarter and ensure that the park and common areas are maintained. In the past six months, 4 homes were reported sold in the Edgewood development. Selling prices ranged from $275,000 to $305,000. The two most recent sales occured within the last week. On November 13th, a two story 1579 sq. ft. home on Bridgeport Rd. sold for $305,000. And on, November 10th, a 1300 sq. ft., short sale listing on Breezy Glen Drive closed for $275,000.

 If you would like a list of homes available in the Edgewood development, or in Orcutt generally, send an email to me at tni@mintprop.com, give me a call at (805) 878-9879, or feel free to search for homes on my website: www.iLoveOrcutt.com.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveOrcutt.com
www.SellMyOrcuttHome.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Prospective home buyers should always check with the local school boards for updates to school boundaries.

Natural History Museum on South McClelland Street in Santa Maria, CA

How many houses are for sale in Santa Maria right now? I get this question all the time. Many buyers feel as if there are no houses for sale in Santa Maria. When I surveyed the MLS this morning, there were 163 houses listed for sale in the Santa Maria and Orcutt CA area. Of those 163 homes, 29 were foreclosures (REOs) and 45 were short sales. It is interesting to note that the average list price of the these active listings was $377,000, which is much higher than the average price of homes sold in Santa Maria in 2009 ($218,000), and also higher than the average price of homes sold in Orcutt in 2009 ($333,000). So, it appears that most of the available houses for sale in Santa Maria and Orcutt are at the higher end of the market. So, that may explain why most buyers feel as if there aren't any homes on the market.

In addition to the 163 houses for sale in Santa Maria there were 162 contingent listings. Twenty were contingent REOs (foreclosures), and 138 were contingent short sales. A contingent REO is a foreclosure listing where the bank has verbally accepted an offer and they are waiting on the parties to complete the contract paperwork. A contingent short sale is a short sale listing where the owner has already accepted an offer and they are waiting on the bank to approve that offer so they can begin the escrow period.

If you are interested in buying a home in the Santa Maria or Orcutt area in the near future, please call me today at (805) 878-9879 to schedule a buyer consultation. Or, send me an email and request a list of available properties in the Santa Maria and Orcutt areas.

Tni LeBlanc, JD, MA, e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.iLoveSantaMaria.com
www.SellMySantaMariaHome.com
www.BuySantaMariaForeclosures.com
www.SantaMariaRealEstateSearch.com

*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.

First time buyers using FHA financing should be aware that the US Department of Housing and Urban Development (HUD) recently announced policy changes that will increase the cost of FHA financing. Soon, the Mortgage Insurance Premium that is required on low down payment FHA loans will increase from 1.75% to 2.25%. This fee is typically financed into the loan, and the higher fee amount will result in an increase in overall loan costs and, when financed, a slight increase in the monthly payment FHA borrowers will see. HUD is also increasing the down payment required if a borrower has less than a 580 credit score. Borrowers with a credit score of 580 or less will have to put down a minimum of 10% instead of the 3.5% allowed to borrowers with a higher score. Frankly, I don't think this new policy will have that much impact. In my experience, most lenders were requiring FHA borrowers to have a minimum credit score of about 600-620 anyway to qualify for a 3.5% downpayment, and this rule just reinforces that.

The amount of seller paid concessions is now being limited from 6% down to 3%. I don't understand why HUD is making this adjustment now, just as I didn't understand why they did away with down payment assistance programs just as the housing market was trying to crawl out of its darkest hour. I can understand that this type of change makes the quality of borrowers better. What I don't understand is the timing and also coupling this action with the push on the other end to give buyers an $8000 tax credit and very low interest rates in order to encourage home ownership. The government is not being consistent in its policies - go figure.

What does this mean for first time buyers? Well, first time buyers will have to save more money to be prepared to enter the housing market. The seller can "only" cover up to 3% of the purchase price in closing costs, and if your closing costs exceed that amount - which they easily can if your purchase price is under $200,000, you will have to pay the remaining costs. Ironically, this will probably impact buyers who are being conservative and spending less money on a home since it is expressed as a percentage cap. For example, if you are buying a home or condo at $150,000, your closing costs could easily be as much as $6000, but the maximum the seller could contribute under the new guidelines is $4500. So, the borrower would have to come up with the remaining $1500 in order to close on that loan. It is already a good idea to save your closing costs as well as your down payment when preparing to buy a home. This new policy simply makes being prepared even more important.

If you are interested in buying a home on the central coast, I strongly recommend using a local lender. If you would like a list of available properties, please send me an email, or give me a call at (805) 878-9879.

Tni LeBlanc, JD, M.A., e-PRO
Broker/Owner, Mint Properties
(805) 878-9879, tni@MintProp.com
www.MintProp.com
www.iLovetheCentralCoast.com
www.BuyCentralCoastForeclosures.com