Explore The OC

California Home Sales Continue an Upward Swing

Tue, 08 Dec 2009 10:36:18 -0600

Positive business news comes from California Association of REALTORS, which reported that October 2009 Home Sales Increased as compared with the same period during 2008.

C.A.R. Report highlights:

Closed escrow sales of existing, single-family detached homes in California totaled 562,400 in October at a seasonally adjusted annualized rate.

Information collected from more than 90 local REALTOR associations statewide.

CA home resale activity increased 1% from the revised 557,050 sales pace recorded in October 2008. Sales in October 2009 increased 5.9% compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the October pace throughout the year.

The median price of an existing, single-family detached home in California during October 2009 was $297,500, a 3.2% decrease from revised $307,210 median for October 2008.

Opinion by CAR Vice-President and Economist Leslie Appleton Young:

California's median price rose for the eighth consecutive month in October and sales continued to show strength, signs that California has hit and passed the bottom of this real estate cycle.
The number of distressed sales as share of total sales has shown considerable improvement since the beginning of 2009.
This improvement a result of loan modifications and other efforts to prevent troubled mortgages from going into foreclosure.
This has led to decline in inventory levels since the start of 2009.

Other California Assoc. of REALTORS report highlights:

For the first-time since July 2007, sales of homes priced $1 million or more rose in year-to-year comparisons.
C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in October 2009 was 4 months, compared with 6.1 months (revised) for the same period a year ago.

This index shows number of months needed to deplete supply of California homes now for sale on the market at the current sales rate.

The median number of days it took to sell a CA single-family home was 34.1 days in October 2009, compared with 45.5 days (revised) for the same time in 2008.

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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com.

Source: California Association of REALTORS. CAR report October home sales Increased (click here to see article).

Anaheim ~ Home to the "Happiest Place on Earth" and Busy Local Housing Market

Tue, 24 Nov 2009 11:23:52 -0600

As home to the "Happiest Place on Earth" ...

and the third largest city in Orange County, Anaheim also has a busy local housing market. With 344 pending homes sales at range of under $500k, and only 189 homes for sale in that range, Anaheim needs more equity listings (not short sales).

Anaheim 92806 is very popular as an area for homebuyers. Most detached homes in this area were built in the 1960s and 1970s, many ranch style with single level.

92806 has three times as many pending sales of detached homes at under $500k as compared with those now for sale on the market, which shows strong buyer activity.

Realtors and agents and their clients at 92806 need more equity listings (not short sales).

Anaheim 92806 is located less than 2 miles from the Big A where the Angels play baseball ... and 3 miles from Disneyland.

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So if you want to know more about Anaheim homes and properties, those for sale and how to sell your home at the best price in the shortest possible time, contact your local REALTOR.

If you are interested in homes and properties at Anaheim and surrounding Orange County, CA, communities, please let us know. Thanks.

Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com.

If you want a Headache, read FHA New Letters re Home Loan & Mortgage Approvals at Condo Associations

Sun, 22 Nov 2009 17:06:20 -0600

This will make it easy for you to get a headache when reading ...

The Federal Housing Administration issued new letters regarding mortgage approvals for units at condominium associations.

See Letter 2009-46A and Letter 2009-46B, which talk about ~

PreSales of New Homes
Owner occupancy ratios
Concentration requirements
Delinquent HOA dues
Transfer of Control to HOAs
Attorney certification
Reserve Study
Owner Invested Units
Right of First Refusal
Legal Phasing
Hazard Insurance
Condo conversions
Ten year warranty
Recertifcation of project approvals
Transition Strategy
Site Condos
False certifications

These are complicated government regs, and I expect will give you a headache while studying it.

The Western Regional HUD office (US Housing and Urban Development) is said to be backing off its prior 60% reserve funding requirement for approval of mortgages at condo associations and will be following the national guidelines described in these letters.

More changes are expected.

U.S. Approvals, a company that provides HUD/FHA and VA project review services published a summary of the FHA condo approvals for mortgage requirements (click here to see article).

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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com.

Orange County, CA, Local Housing Market Community Updates

Mon, 16 Nov 2009 18:14:58 -0600

Local Housing Market Updates for Orange County Communities

Irvine, California

Costa Mesa

Tustin

and Newport Beach, Mission Viejo and Laguna Beach.

These local homes for sale markets are now more dominated by short listings, and bank owned REOs have been bought up and are a very small share.

See my blog article with lots more detail ~ Irvine, Costa Mesa, Tustin, Newport Beach, Mission Viejo and Laguna Beach ~ Housing Market Updates (click here for article).

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If you are interested in homes and properties at Orange County, CA, communities, please let us know. Thanks.

Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com.

To My Heroes ~ Thanks to the Men & Women Who Have Served in our US Military ~ Veterans Day Celebration

Wed, 11 Nov 2009 20:45:31 -0600

Thank you and tribute to the men and women who are now serving ... and who have served ... in our US military.

"Here's to the Heroes" ..... sung by the '10 Tenors' ... (click here to see YouTube.com video and listen for great music).

Colonel William Barber, US Marine Corps, US Medal of Honor, WWII, from Orange County, CA.

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General Dwight Eisenhower, US Army, WWII, later President of the United States.

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Walter Ehlers, US Army, WWII, Medal of Honor Winner, Still Living and raising money for charities at Orange County, CA.

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George H.W. Bush, US Navy, WWII, later 41st President of the United States.

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Harrison K. Long, US Army Air Corps, B-17 Pilot, WWII (my father)

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"Here's to the Heroes" ..... sung by the '10 Tenors' ~ (click here to see fantastic YouTube.com video and great music).

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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com.

Tricky Mortgage Loan Enforcement Issues in California

Tue, 10 Nov 2009 12:17:33 -0600

Experience with real estate and lending investor clients reminds about the California one action rule and that mortgage loan contract enforcement can be tricky in this state.

When a lender wants to enforce terms of a loan secured by California real property, certain issues must be considered.

California one-action and antideficiency rules - complex laws that are reviewed at other articles and blogs

Letters of credit - not generally but sometimes subject to the anti-deficiency issues

Multi-state collateral - Borrowers facing foreclosure of loans secured by property in other states sometimes seek antideficiency and one-action protections in California.

Indian land - Some local markets have financing at casino developments on Indian lands (lands held by Bureau of Indian Affairs in trust for certain Native American tribes, which is covered by US law).

Coastal land/Tidelands trust lands - more regulations here and extra time needed to enforce loans.

Lenders' using casualty insurance and condemnation awards to pay down loan - Some California laws limit a lender's use of insurance and condemnation awards to pay down principal balance.

Limitations on late fees - California courts can limit right of lender to impose prepayment penalties, late charges and default rate of interest for defaults by borrower.

Qualification to do business in California - a non-California based lender (other than a national bank) needs to qualify to do business in California.

Attorney fee provisions in contract - In any action on a contract where it provides that attorneys' fees and costs incurred to enforce provisions of such contract shall be awarded to one of the parties, California law at Civil Code 1717 et. seq. says that prevailing party, whether that party specified in contract or not, shall be entitled to reasonable attorneys' fees in addition to costs and necessary disbursements. This can provide leverage for borrowers.

So lenders must consult with qualified real estate attorneys and carefully plan enforcement of terms of their mortgage loan contracts in California.

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Source: "Weird California loan enforcement issues" (click here for link to article by Maura O'Connor, November 5, 2009).

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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com.

Fannie Mae Is Now My Landlord?

Mon, 09 Nov 2009 17:04:40 -0600

I like this thoughtful post by Ted Canto, mortgage consultant at Mesa, Arizona, about Fannie Mae getting into the landlord business.

That Fannie is determined to own and manage its properties for US taxpayers shows from its hiring a national property management service company.

Via TED CANTO, - Loan Officer (Academy Mortgage):

Fannie Mae Is Now My Landlord?

Well when you think they have thought of everything, Fannie is now in the Landlord business!! I am not sure how I feel about this and whether or not it will realistically make a difference in the process of filtering the problems out of the market. However, it does help the struggling homeowners from becoming homeless which is a good thing (Just in case, if you haven't heard, homeslessness is on the rise and it partly does have a relationship to the foreclosure problem).

So what does this all mean? I suggest busting out the glasses and get reading.

Fannie Mae announced Thursday that it will allow troubled homeowners lease their homes versus losing them through foreclosure and eviction. The new program is directed at providing greater home security to distressed borrowers who can't afford their mortgage payments and do not qualify for a loan modification, however who can able to afford the rent.

The program is designed so that borrowers transfer their property deed to Fannie, this is also known as a deed-in-lieu of foreclosure. A deed-in-lieu will adversely affect a borrower's credit score, but it isn't as damaging as a straight-up foreclosure, even though the end result is the same which is that "Fannie gets back the property".

In the new "Deed for Lease" program, borrowers will need to:

Qualify for a deed-in-lieu under Fannie's current guidelines

Demonstrate that they have enough income to pay a market rent, they'll be required to sign a lease for up to 12 months.

Here's a few question and answers about the program:

How do I know if Fannie owns or guarantees my loan?

Fannie Mae has a loan look-up Web site that lets borrowers see whether their loan is held or backed by Fannie, and therefore eligible for the program. Mortgages backed by the FHA and other government agencies don't qualify.

Can homeowners qualify for the program if they're current on the mortgage?

No. The program is open only to borrowers who have missed a payment and who therefore can show that they can't afford their current mortgage payments. A borrower's mortgage servicer must also show that the borrower isn't eligible for a loan modification. Potential tenants have to demonstrate that market rent wouldn't exceed 31% of their monthly gross income, and borrowers who are 12 or more payments past due on their mortgage aren't eligible.

Could borrowers-turned-tenants buy their home back when the lease expires?

Unlikely. Fannie says that at the end of the initial lease term, they may choose to extend the lease or "offer for sale to any qualified home buyer." Most borrowers who have recently missed mortgage payments and executed a deed-in-lieu probably won't have strong enough credit or enough cash to be able to buy a home.

Can borrowers intentionally default in order to be eligible for the lease program? A

gain, it's unlikely. Fannie says that "borrowers would not qualify for a deed-in-lieu, and therefore not qualify for a deed for lease, if it is determined that they can afford their current mortgage payments."

Are there any other restrictions?

Second lien mortgages aren't eligible, and any subordinate liens secured against the borrower must be released. Borrowers can't be involved in an active bankruptcy proceeding and aren't parties to any litigation on the property or the loan. Properties also couldn't be rented if rented homes would violate zoning or homeowners' association rules.

Who will manage the properties?

Fannie Mae has contracted with a national property management company to handle maintenance and property management. Here's a full list of rules and regulations, Fannie's FAQ, and a page that includes borrower instructions for the program.

Direct lender and licensed in most states across the U.S.

Ted Canto

Sr. Mortgage Consultant

Direct: 480.650.8602

Visit www.tedcanto.com

Ted's Blog: www.thecantoteam.com

Home of the 10 Day Close! www.tendayclose.com

Company site: www.academymortgage.com/tedcanto

More Good News for Buyers - Homebuyer Tax Credit Extended and Expanded - Explained in Short Video

Mon, 09 Nov 2009 02:21:09 -0600

Good News for Homebuyers

US Homebuyer Income Tax Credit Extended and Expanded - as explained by Christi Long in this short video (click here to see video).

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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com.

US House Today Approved Homebuyer Tax Credit Extension and Expansion

Thu, 05 Nov 2009 16:32:20 -0600

U.S. House of Representatives today voted by overwhelming positive vote of 403-12 to approve the Unemployment Compensation Extension Act (H.R. 3548) that included, as an amendment, the extension and expansion of the Homebuyer Tax Credit.

This bill with bipartisan support already passed in the U.S. Senate so now will advance from Congress to the White House for President Obama's signature.

The Administration already has signaled its support of the Homebuyer Tax Credit amendment and the President's intention to sign the bill into law.

So extension and expansion of the US Homebuyer Tax Credit will soon be a reality.

Voices by REALTORS and National Association of Realtors and industry leaders were heard at our Nation's capital.

Government is taking action to help our industry and the economy. This extended and expanded Homebuyer Tax Credit will be available to qualified home buyers in the first half of 2010 and will benefit our business and U.S. economy.

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My prior article on this subject had some interesting commentators - Will Expected Extension of Homebuyer Tax Credit Help Our Real Estate Clients?

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For other information about this expected extension and expansion of the homebuyer tax credit, contact your local REALTOR now and as soon as possible to buy a home and tax advantage of this tax credit.

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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com.

Time Magazine vs The Realtor Party.

Tue, 03 Nov 2009 19:48:23 -0600

Gene Wunderlich, Realtor at Temecula, Riverside County, CA, member of CAR board of directors, is a writer, a funny guy, and has an idea or two about government relations.

I reblog his post Time Magazine vs The Realtor Party. - his reminder to the columnist at Time Magazine that REALTORS and National Association of Realtors are proud to be a powerful voice at our nation's capital. Keep it going Gene.

Via Gene Wunderlich - Realtor®, Government Affairs Director (Southwest Riverside County Association of Realtors):

A recent issue of Time Magazine carried an article by The Curious Capitalist / Justin Fox entitled 'Get Homes Off Welfare" . I'm not sure if Fox really is a capitalist at heart, or if he's just curious about the concept. Either way he makes a semi-literate case against the housing industry in general and the governments support of same. He bemoans the fact that homeowners are 'at the receiving end of a truly staggering array of subsidies and tax breaks', hard to put a price tag on but 'clearly in the hundreds of billions of dollars a year.'

He claims that even with all this aid homeowners aren't doing so well and then trots out the old canards about real estate values falling by $4 trillion the past couple years and the millions of foreclosures and people 'booted from their homes'. Like that's somehow 'housings' fault. He bemoans the fact that 80% of mortgage loans this year are backed by the government and their minions Fannie, Freddie & Ginnie at lower interest rates than private market mortgages. He lumps in the Federal Reserve for good measure blaming them for artificially lowering interest rates by buying up Freddie, Fannie & Ginnie securities. All of this, according to Fox, puts taxpayers on the hook when things go disastrously wrong, as they so spectacularly have the past couple years.

He goes on to slam the $8,000 first-time homebuyer tax credit and then progresses to the mortgage interest deduction, property tax deductions and capital gains tax breaks , which he believes cost the government at least $100 Billion this year and every year. With nary a nod to the economic benefit and the hundreds of billions in revenue & jobs provided by housing, building and ancillary industries, he goes on to complain that the bulk of tax benefits flow to the upper end of the income spectrum and to the coasts.

Let me get this straight - Justin thinks homeowners aren't taxed enough and that too many breaks go to the wealthy and the coastal elitists. Hmmmm, I may have just figured out his position on capitalism after all. That's curious.

Then he posits that subsidies have a side effect that 'push us to buy rather than rent'. These dastardly subsidies not only push us to buy, but force us to buy more home than we can afford & drive prices up and that subsequently our homeownership becomes a 'ball and chain' if workers want to move where jobs are more plentiful. He says that subsidizing housing resulting in appreciating home values is good for sellers but not renters or first time buyers. Maybe he should peddle that claptrap to the 350,000 first-time homebuyers who have recently become homeowners thanks to this subsidy.

In fairness, every point Justin raises is valid. But as with so many in the media today, he appears to be in touch with only 1/2 the picture, the half that supports his agenda. Or maybe he was just on deadline and didn't have time to do an objective article, or he just thought this would be clever or something. Who knows.

He closes his article by stating the obvious - that rising prices are always good news for real estate agents, mortgage lenders and homebuilders. (Jeez, Justin, what might you conclude about our fortunes during the past 3 years of plummeting prices?)

This part I love. "These groups are powers in Washington. The National Association of Realtors gave more money than any other group to candidates in the last election ($4 million). Its 1.1 million members can do a lot of lobbying." Justin, you got that 100% correct right there.

Finally he refers to Dwight Eisenhower's caution against the 'military-industrial complex' by issuing a call-out to the 'real-estate industrial complex'. I love that. Sure maybe it's just little old Justin Fox, the Curious Capitalist, who has recognized that fact, but it's a start.

I don't know about you but when it comes to advocating on behalf of homeowners, or standing up for private property rights and supporting the industry that drives our economy, I'm damn proud to be part of the real-estate industrial complex. Except, Justin, for future reference, we call ourselves 'The Realtor Party'. Try to get it right if they give you any column inches in the future. Of course that's just my opinion... I could be wrong.

Will Expected Extension of Homebuyer Tax Credit Help Our Real Estate Clients?

Sun, 01 Nov 2009 01:03:46 -0600

Will the Expected Extension of the US Homebuyer Tax Credit help business in our state, be a boost for our clients, the housing market and be good for our US and local economies?

Good question, and we will all see what develops, whether the measure can be worked out between Senate and Congress, and if it passes whether Obama will sign it into law. Then we'll see how buyers and consumers react between December 1 and April 30 of next year.

WE NEED ENCOURAGEMENT FOR HOME SELLERS HERE AT ORANGE COUNTY. Too many are nervous and waiting to sell their homes. Our local markets need more homes for sale at under $800k.

This new measure could possibly encourage more owners to be sellers, to have positive expectations and get their homes cleaned up and ready for market and sale.

The government's first-time home buyer $8,000 tax credit has inspired a lot of sales this year, estimated as many as 400,000 by the time the program ends on November 30.

US Senate negotiators have agreed on a tentative deal on extending and slightly expanding the tax credit.

$8,000 tax credit extension would cover first-time home buyers who sign a contract for a home by the end of April 2010 and close by the end of June 2010.
Creates a $6,500 tax credit for those who buy a home, but have owned a home for at least five consecutive years out of the past eight years.
Under the $8,000 tax credit extension, income limit would be raised to $125,000 a year for individuals and $225,000 for married couples.

Like most REALTORS and real estate professionals, we are concerned about business and our economy, employment in California, and are in favor of this homebuyer tax credit extension. We believe it can help improve our US and local economies, put buyer consumer money back into the markets, and assist to create jobs in this important real estate industry.

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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. Irvine Realtor. CA DRE #01410855. ExploreProperties@gmail.com.

Improvement Seen at September 2009 CA Homes Sales ~ California Association of Realtors

Thu, 29 Oct 2009 11:54:26 -0500

The California Association of Realtors has issued its September 2009 homes sales report, which has some good news.

Home sold units at CA increased 2.1 percent in September as compared with the same period a year ago, while the median price of an existing home declined 7.3 percent.

"The market's momentum continued in September, as many home buyers took advantage of the federal tax credit for first-time home buyers," said C.A.R. President James Liptak.

"The success of the federal tax credit is clear. Nearly 70 percent of first-time home buyers report that the tax credit was ‘the most important' or a ‘very important' factor in their decision to buy a home.

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Closed escrow sales of existing, single-family detached homes in California totaled 530,520 in September at a seasonally adjusted annualized rate.

This is according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide.

Statewide home resale activity increased 2.1 percent from the revised 519,530 sales pace recorded in September 2008. Sales in September 2009 increased 0.6 percent compared with the previous month.

So they anticipate more than 519,000 homes will be sold in California this year.

C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in September 2009 was 4.2 months (short market time) as compared with 6.5 months (revised) for the same period a year ago.

This shows number of months needed to deplete the supply of homes on the California market at the current sales rate.

California median Home sold prices were down 7.3 percent in September 2009, which is as expected.

The California Assoc. of Realtors report relied on stats from DataQuick Information Systems for home sold prices, and DataQuick uses county records data rather than MLS information. See DataQuick statistics on home sold prices by county and city.

California Association of Realtor September 2009 Home Sales Report (click here to see the article).

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Harrison K. Long, Realtor and Broker, Coldwell Banker Previews, Irvine, CA. DRE 01410855. Email - ExploreProperties@gmail.com.

Job Growth at Orange County Expected During 2010 ~ Cal State Fullerton Economy Forecast

Tue, 27 Oct 2009 10:30:48 -0500

Job growth and employment figures aren't very sexy as topic for a blog article, but it's good to hear expert economist Anil Puri at Cal State University Fullerton make some positive predictions about Orange County. He sees job growth in 2010.

Cal State Fullerton's 2009 economic forecast now released with comment by Anil Puri, dean of the Mihaylo College of Business and Economics. This expert had predicted in April 2009 that the economy rebound but not quickly.

Good news for workers ~

Orange County payrolls should start showing job growth in second half of 2010.
OC employers will add about 9,900 net new jobs next year (which is off the average annual pace of 17,400 since 1990).

Puri said about Orange County ~

Expect to see a peak in unemployment in the first quarter of 2010.
Unemployment peak should be somewhere between five to six months after the official end of the recession. (Orange County unemployment is now at high of 9.4 percent in September 2009).

He said he believes in a faster economic rebound in terms of gross domestic product and predicts GDP will grow at 3.3 percent during 2010 after declining during the recession.

This report points to strong recent economy performance by some foreign countries, that lower U.S. dollar will help U.S. exports, and that the housing market appears to have already hit bottom.

We have seen a turn in Orange County residential real estate, which is on upswing for market under $1 million.

The biggest part of the US economy stimulus of $787 billion is expected to hit during last quarter 2009 and first at 2010. We will see how, if at all, this effects the Orange County economy.

So even though possible job growth and employment figures at Orange County aren't a sexy topic, it is indeed good to hear an expert economist make some positive predictions.

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For information about Orange County homes and real estate, please contact us. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. DRE 01410855. ExplorePropertie@gmail.com.

Scary Hot Housing Market & Challenging Times ~ Orange County, CA

Thu, 22 Oct 2009 00:09:04 -0500

Scary Hot Housing Market at Orange County is just about right, especially for homes under $500k. We see homes in this range come onto the market and get multiple offers within 24 hours, with many of these homes going for over asking and for all cash.

To Sellers Advantage. They can wait for the best offers where buyers pay more than asking, some with all cash, waiving contingencies and some appraisals.

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Christi wrote this article about our local OC housing market ~ "As Good As Gold ~ Homes Under $1M at the Orange County, CA, Housing Market" (click here for link to article).

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Factors add up to trend favoring sellers at OC home selling market in this range.

Buyers and investors have gotten more involved.

Continued buying with decreased inventory causes demand to bump.

Add that to not enough bank owned REOs to sell, and the formula is in place to favor sellers.

Homes at Orange County are flying on and off the market in average of less than 60 days when priced at $500k and below.

So our local Orange County Housing Market is scary hot during these interesting times.

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Writing local, real estate and business related articles is part of my own education, is interesting and can be fun. Providing value and content is part of what we do to help our friends, other REALTORS, and clients with information about the business of homes sales and real estate.

Harrison K. Long, Realtor and broker, Explore Group, Coldwell Banker Previews, Irvine, CA. CA DRE 01410855. - email - ExploreProperties@gmail.com.

Governor Schwarzenegger Signs New CA Law Today With Focus to Curb Irresponsible Subprime Lending Practices

Mon, 12 Oct 2009 20:26:23 -0500

New California law with focus to Limit Predatory Lending Practices was signed today, October 12, 2009, by our Governator (Assembly Bill 260 - Lieu).

This new law covers CA state-regulated independent mortgage brokers.

The policy stated and purpose of this law was to restrict California mortgage brokers by requiring them to act in a borrower's best interest. This law would prohibit them from steering borrowers to loans worse than those they qualify for and limits subprime prepayment penalties (fees for paying off or refinancing a loan early).

This new law (AB 260) grants power to state agencies, the Attorney General, and injured borrowers to enforce violations of the law and pursue relief. What this new law could possibly do:

Limit prepayment penalties and prohibit broker compensation for arranging a higher priced loan with prepayment penalties.
Confirm by law that mortgage broker owes a fiduciary duty to a borrower and requires mortgage broker to place economic interests of the borrower ahead of his own.
Make a licensed person who violates any of provisions liable to borrower in amount of borrower's damages, and would authorize court to award court costs and attorney fees to a prevailing plaintiff.
Prohibit CA licensed mortgage broker from making false, deceptive, or misleading statements or representations in connection with higher-priced mortgage loans.
Limit mortgage broker from steering borrower to accept a loan at a higher cost than that for which the borrower could qualify.

Other stated policy consideration by the author of this Assembly Bill 260: Some subprime lending has helped millions of people achieve the American Dream. It is irresponsible subprime lending that needs to be eliminated. AB 260, with its strong focus on preventing misconduct by brokers and lenders-seeks to eliminate irresponsible subprime lending, while preserving access to homeownership.

Click here for link to text of this new California lending law. California law with focus to Limit Predatory Lending Practices was signed today, October 12, 2009, by our Governator (Assembly Bill 260 - Lieu).

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Harrison K. Long, Realtor and broker, Explore Group, Coldwell Banker Previews, Irvine, CA. CA DRE 01410855. ExploreProperties@gmail.com.

Expect Monday After Thanksgiving Weekend To Be a Busy Real Estate Day ~ November 30, 2009

Sat, 10 Oct 2009 11:39:54 -0500

Monday after this year's Thanksgiving Weekend, November 30, 2009, will be a very busy day in real estate, with home purchases to satisfy First Time Homebuyer Tax Credit - Act Now Before It's Too Late ~ Take Advantage of Your First Time Homebuyer Tax Credit.

New FED "TRUTH IN LENDING" requirements for lenders went into effect on October 1. FED Adopted New Rules for Lenders and Home Mortgage Loan Brokers ~ Effective on October 1, 2009.

Will lenders be able to close transactions on a timely basis, or could this TRUTH IN LENDING regulations gum up the works with anticipated and planned closings for November 30, 2009, when the US first time homebuyer tax credit expires?

The TRUTH IN LENDING rules require a lender to compare the first annual percentage rate (APR) as quoted to borrower with what the rate is at time of closing (HUD1 statement). If the APR is off by more than one-eighth of 1 percent, the closing must be delayed at least three days for the purchaser to decide whether he wants to continue the closing of the home.

These rules will make it challenging when a buyer has made plans and is counting on buying the home with benefit of tax credit and closing on November 30.

So we real estate business people expect Monday after Thanksgiving Weekend to be a very busy day in real estate, with home purchases to satisfy First Time Homebuyer Tax Credit, with escrow closings no later than November 30, 2009.

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Please contact us for information about the first time homebuyer tax credit and Orange County homes and properties. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.

Buyer Demand Wiping Out REOs at Irvine Housing and Local Real Estate Market

Mon, 05 Oct 2009 15:26:00 -0500

Buyer Demand is Wiping Out REOs at the Irvine Housing and Local Real Estate Market. Trend for local market shows huge buyer demand for REO homes and that the market doesn't have enough listings to support.

Homes sold at Irvine, CA, last thirty days (ending September 29, 2009) - 170 homes
Regular equity sales last thirty days - 131
REO homes sold last thirty days - 16
Short listings sold last thirty days - 23
More than half of homes sold were between $500k to $1 million

Irvine homes now listed for sale at SoCal MLS ~ 506 homes for sale (not enough). 345 of those for sale are equity sales (not enough). Only 14 homes listed are REOs (not enough).

Buyers and Investors wants REO homes, and Orange County REOs are selling like hot cakes and for more than asking price during this time.

What this means ~

Irvine doesn't have enough REO listings now to support buyer and investor demand.
Buyer Demand is Wiping Out REOs at the Irvine Housing and Local Real Estate Market.
Trend for local market shows huge buyer demand for REO homes and that the market doesn't have enough listings to support.

NOTE TO BANK OWNERS AT IRVINE ~ If you are holding back bank owned homes for Irvine, get organized and on the market now and as soon as possible.

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Please contact us if you want information about Irvine homes and real estate. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. - email - ExploreProperties@gmail.com.

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Visit is again at Explore The OC Blog for future posts on TRENDS at IRVINE HOUSING and local REAL ESTATE MARKET.

Congress Support Getting Active and Behind Proposed Extension of US Homebuyer Income Tax Credit

Sat, 03 Oct 2009 11:08:40 -0500

Congress getting active with support of Proposed Extension on First Time Homebuyer US Income Tax Credit.

Press Release September 29, 2009 on a Number of News Sites

Legislation will promote growth, stability in housing market

September 29, 2009 - (RealEstateRama) - Reps. Frank Kratovil (D-MD) and Travis Childers (D-MS) have introduced important legislation to help families buy and sell homes and spur growth and stability in the American housing market. The Tax Credit Extension for Homebuyers with a Loss Deduction Incentive Act (H.R. 3640) will extend for one year the $8,000 home-buyer tax credit, expand the credit to all homebuyers purchasing a principal residence, and provide relief for individuals or families who are forced to sell their home at a loss.

"Realtors and home buyers alike are reporting that the first time home buyer tax credit is working to revitalize the housing industry. In this economy it would be foolish to allow something that is working to simply expire," said Rep. Frank Kratovil (D-MD). "Instead we need to extend this tax credit so that more first time buyers have an opportunity to enter the market, but also expand the credit so that all American's are able to buy a home and give the entire economy a shot in the arm."

"As a veteran realtor for over 30 years, I have seen firsthand the ups and downs associated with the housing market. Recent signs of recovery in the market are certainly encouraging, but we must follow through and sustain the progress linked to the initial benefits of the homebuyer tax credit," said Congressman Childers. "H.R. 3640 will allow more American families to take advantage of this tax credit, provide an incentive for people to sell homes that are inflating an already flooded marketplace, and help further stabilize the housing industry. I am proud to join with Rep. Kratovil to introduce this important and timely legislation."

"This bill adds to the growing groundswell of support in the U.S. House of Representatives for extending and enhancing the Homebuyer Tax Credit," said National Association of Realtors President Charles McMillan. "The National Association of Realtors estimates that 350,000 additional home sales will take place as a result of the current tax credit. Stability in the housing market will help the nation's economic recovery. We applaud the efforts of Reps. Frank Kratovil and Travis Childers for showing leadership on this important issue."

The loss deduction provided by H.R. 3640 will be carried over a three year period and is worth up to $4,000 on an annual basis ($12,000 over a three year period). This provision is directly correlated to what is offered on capital assets to Americans who suffer a loss within a given year.

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It's not too late for you to take advantage of your First Time Homebuyer Income Tax Credit, which expires November 30, 2009.

Please contact us with your questions and interest about Orange County, CA, homes and properties. Thanks. Harrison K. Long, Explore Group, Coldwell Banker previews. - ExploreProperties@gmail.com.

Good News for Homebuyers and Better Mortgage Rates Quoted Today

Fri, 02 Oct 2009 11:31:45 -0500

Great news for Homebuyers and borrowers is that better mortgage rates were quoted today by Caliornia lenders and mortgage brokers.

Conforming

30 Year to $417k 4.750%

30 Year to $729,750 5.000%

15 Year 4.250%

5 Year 3.750%

Jumbo

30 Year to 2M 6.125%

30 Year to 5M 6.500%

FHA

30 Year 4.875%

30 Year Jumbo 5.125%

Rates were stated with 1 point. Borrowers must contact their local mortgage brokers and lenders to confirm information about rates for their area and individual situations.

Great news for Homebuyers and borrowers is that better mortgage rates were quoted today by California lenders and mortgage brokers.

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For information about Orange County and Southern California homes and properties, please contact us. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA. - ExploreProperties@gmail.com.

Trending Housing & Real Estate Market at Irvine, California

Thu, 24 Sep 2009 18:17:52 -0500

Irvine, California, homes and real estate market update. __________________________________________

As of September 21, 2009, there were 531 active homes listed for sale.

There were 458 pending sales listed at SOCAL MLS.

That's a huge number of pendings, which again are close to number of active for sale.

30 Irvine homes were sold during the past thirty days.

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Of the 531 Irvine homes for sale ....

... 389 were regular equity sale listings

(this is too low for our market).

126 of those for sale were short listings (this is too high).

16 of those listed for ale were bank owned REOs.

Irvine Homes with asking under $500k remain very hot, and market time is close to one month. Homes below about $700k at Irvine were in a seller's market, and expected market time is about two months or less. Sellers at $700k and under are getting multiple offers on nice homes, and buyers have had lots of competition from each other and investors.

That's your Irvine, California, homes and real estate market update, September 21, 2009.

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Please contact us if you have questions about Irvine and Orange County homes and real estate. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.

FED Adopted New Rules for Lenders and Home Mortgage Loan Brokers ~ Effective on October 1, 2009

Thu, 24 Sep 2009 00:12:18 -0500

The Federal Reserve has adopted its new (and complicated) rule for Regulation Z, US Truth in Lendng Act, regarding prohibitions and requirements for lenders and home mortgage loan brokers, which is effective starting October 1, 2009.

I copied the following from the California Association of Realtors web site:

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12 C.F.R. Part 226, Final Rule Under Reg Z - effective October 1, 2009

This Regulation Z final rule establishes a new category of "higher-priced mortgages" that includes virtually all closed-end subprime loans secured by a consumer's principal dwelling. Which loans qualify as "higher-priced" will be determined by a new index that will be published by the Federal Reserve Board. The rule's definition of "higher-priced mortgage loans" will capture virtually all loans in the subprime market, but generally exclude loans in the prime market.

The rule for these higher-priced loans:

^. Prohibits a lender from making a loan without regard to borrowers' ability to repay the loan from income and assets other than the home's value. A lender complies, in part, by assessing repayment ability based on the highest scheduled payment in the first seven years of the loan. To show that a lender violated this prohibition, a borrower does not need to demonstrate that it is part of a "pattern or practice."
^. Prohibits a lender from relying on income or assets that it does not verify to determine repayment ability.
^. Bans any prepayment penalty if the payment can change during the initial four years. For other higher-priced loans, a prepayment penalty period cannot last for more than two years.
^. Requires that the lender establish an escrow account for the payment of property taxes and homeowners' insurance for first-lien loans. The lender may offer the borrower the opportunity to cancel the escrow account after one year.

The rule for all closed-end mortgages secured by a consumer's principal dwelling:

^. Prohibits certain servicing practices: failing to credit a payment to a consumer's account as of the date the payment is received, failing to provide a payoff statement within a reasonable period of time, and "pyramiding" late fees.
^. Prohibits a creditor or broker from coercing or encouraging an appraiser to misrepresent the value of a home.
^. Creditors must provide a good faith estimate of the loan costs, including a schedule of payments, within three days after a consumer applies for any mortgage loan secured by a consumer's principal dwelling, such as a home improvement loan or a loan to refinance an existing loan.

The rule for all mortgages:

Requires advertising to contain additional information about rates, monthly payments, and other loan features. The rule also bans seven deceptive or misleading advertising practices, including representing that a rate or payment is "fixed" when it can change.

Compliance with the new rules, other than the escrow requirement, is mandatory for all applications received on or after October 1, 2009. The escrow requirement has an effective date of April 1, 2010 for site-built homes, and October 1, 2010 for manufactured homes.

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My Source of this information: California Association of Realtors.

Interesting Coincidence: Orange County Home Sold Prices Rose Almost $8K During August 2009 v. July

Thu, 17 Sep 2009 19:19:28 -0500

The Orange County median home sold price was up almost $8,000 in August from July 2009.

Coincidence is and on lots of minds these days that the $8,000 US First Time Homebuyer Tax Credit expires November 30, 2009.

My prior article ~ Act Now Before It's Too Late ~ Take Advantage of Your First Time Homebuyer Tax Credit.

Median sold price of an OC home was $427,750 in August 2009 ~ per MDA DataQuick. August's median sold price is the highest that Orange County has seen in 10 months, but down about 3% from same time during 2008. And it's down more than 30% from all-time high in June 2007.

Home Prices Rise Nearly $8,000 in August, By MARK MUELLER, Orange County Business Journal. (see article)

The Orange County median home sold price was up almost $8,000 in August from July 2009, and it's a coincidence that the US first time homebuyer tax credit is $8k.

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Please contact us if you have questions about Orange County homes and real estate. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.

Dove Canyon ~ Rancho Santa Margarita's Premier Residential and Private Community

Thu, 17 Sep 2009 15:53:56 -0500

Dove Canyon - Rancho Santa Margarita, South Orange County ~ premier residential community designed and built around Dove Canyon golf club and its course.

With about 1,200 homes and 5,000 residents, Dove is located in the foothills of South Orange County on the south and east side facing toward Saddleback Mountain.

Inside the guard-gated entry is a Jack Nicklaus signature golf club, pool, tennis courts, child's park, play field, shopping center, and water reservoir. All homes in Dove are single-family residences.

A horse trail starts outside the community gate and continues to Sycamore Canyon, where hikers, horse riders, bikers, go into neighbor community, Coto de Caza.

Homes at Dove range from asking price of $599K to $1,150,000.

See Dove Canyon homes for sale (click here for free active link).

See and visit at Dove Canyon, beautiful and private Orange County residential community. Thank you.

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Contact us if you have questions about Dove Canyon and Orange County Real Estate Market. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.

First California Stand Alone Mortgage Fraud Bill Passed by Legislature ~ Now on Governor's Desk for Expected Signing Into Law

Thu, 17 Sep 2009 01:33:31 -0500

The California State Assembly approved the state's first stand alone Mortgage Fraud Legislation by a 76-0 vote during week of September 11, 2009.

This bill would establish California's first stand alone mortgage fraud law treating the crime as a felony.

The California State Senate had earlier approved the measure, SB 239, by a vote of 39-0.

If signed into law by Governor Terminator (We hope and expect that he will sign), this legislation will make it a felony for any person to knowingly make or use any deliberate misstatement or omission during the mortgage lending process, with the intention that it be relied on by a mortgage lender, borrower, or any other party to the lending process.

Upon conviction, such California law violators could be subject to a maximum penalty of three years in state prison and a fine of up to $10,000.

California's only current dedicated mortgage fraud law makes the crime a misdemeanor. Other states that have recently adopted dedicated felony mortgage fraud statutes with similar wording include Georgia, Arizona, Nevada, North Carolina and Florida.

This legislation (SB 239) also will help speed up investigation of mortgage fraud allegations by allowing investigators to obtain transaction related documents via court order.

The bill was created in response to explosion of mortgage fraud schemes that have contributed to major problems for our California economy.

See - State Assembly Approves Mortgage Fraud Legislation Written by Santa Clara County District Attorney's Office.

I have read and support California SB 239, agree with good PUBLIC POLICY behind this legislation, and believe it will be signed by the Governor with little or no fanfare and disagreement.

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Contact us if you have questions about the Orange County Real Estate Market. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.

Rebates for Residential Water Customers & Water Saving Devices at Irvine Ranch Water District

Wed, 16 Sep 2009 14:02:32 -0500

We are all concerned about water conservation here in Southern California and Orange County.

The Irvine California Ranch Water District Rebate Reservation System is now in effect.

Before purchasing a qualifying water saving device, your reservation number is required. The IRWD rebates require reservation numbers prior to purchase of the eligible devices and the new format electronic applications.

REBATE RESERVATION RESTRICTIONS:

During the weekend of September 18 through September 21, 2009, rebate reservations will not be available. Purchases made during this weekend, without a previously obtained and approved reservation, will be ineligible for rebates.

Future REBATE PROGRAM CHANGES:

Beginning September 21, 2009, at 9:00 a.m., rebates will be co-funded by Metropolitan Water District of Southern California (MWD) for IRWD residential water customers residing in single-family dwellings. As rebate funding levels change, they will be posted on this website. Therefore, it is important to check here before purchasing a qualifying fixture or device.

Also starting September 21, IRWD rebates for residential water customers residing in single-family dwellings will not require a reservation. However, rebate applications are required and will be available online at www.socalwatersmart.com and may also be available at retail stores.

To reserve a single-family home rebate (for customers living in detached homes, or attached homes of four units or less) click on the box below:

For more information visit http://www.socalwatersmart.com .

Customers who pre-qualify for multi-family rebates will be notified when they are eligible for a rebate reservation. Here's how to pre-qualify for a multi-family rebate:

Call 1-877-728-2282 and press 5. Be prepared to provide:

Your name, installation address, e-mail address, and telephone number
Name of your water provider (verify this by looking at your water bill)
Type of device that you will be purchasing and the quantity you intend to purchase
If you are planning to install a Weather-Based Irrigation Controller (WBIC), provide the name of the device, the the number of stations on each WBIC, and the total square footage of your irrigated landscape area.

We are all concerned about water conservation. Best wishes for your Irvine California Ranch Water District Rebate Reservation System information.

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Contact us if you have questions about the Orange County Real Estate Market. Thanks. Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.