Tni's Blog

Buying REOs - You May Not Get Your Keys Until the Day AFTER it closes!

Mint Properties — Fri, 31 Jul 2009 07:51:45 -0500

Of all the delays that REO buyers must endure, this tends to be the most difficult to swallow. After you've crossed the finish line, the loan funded, and you've waited the additional day for the transaction to record, NO KEYS! I've had this happen about 3 times, but it is beginning to be a trend on REO purchases that buyers cannot get the keys to their new home until the day AFTER the transaction closes. Banks centralize their escrow and title work on foreclosures, so you are almost always dealing with an out-of-town escrow company that is overburdened with work and often doesn't care about your individual transaction. The usual practice is for the escrow company to record the transaction, and then confirm the recordation. In a "normal" sale, using a local escrow company, the new deed is recorded and confirmed on the same day many times before 10am. However, as with anything else on an REO purchase, this now takes longer.

I was actually getting used to the fact that on most REOs, confirmation is generally not available until the very end of the day. However it appears that, rather than hire a few more people, escrow companies handling REOs are contracting out recording documents and also confirmation of recording to third party companies. So, now buyers are being told that their transaction cannot be confirmed, and keys cannot be handed out until the following day. And it seems to me that the time these escrow companies spend fending off irate buyer's agents, could easily be spent making phone calls to confirm recording. When discussing the lack of customer service at these escrow companies, one of my buyers asked me recently "am I really paying for people to treat me this way?" My answer could only be - "unfortunately you are."

My first two experiences with this happened on the same Friday when buyers were rightfully expecting keys. I called one of the escrow companies right before close of business expecting confirmation, and they claimed that confirmation was generally not available in Santa Barbara County until the following day. Needless to say, no one appreciates being lied to, but especially not on Friday at 5pm. What is unusual is that the local offices of these same escrow companies function in a completely different way. Unfortunately, it is impossible to direct the transaction to a local office. There is some controversy surrounding this point, as I am told the law in California requires that buyers have choice about their escrow company - and REO buyers effectively have none. Like almost all of the other terms of the REO contract, if buyers do not agree, they are passed over for another buyer.

I do believe that this issue of late confirmation will ultimately be resolved either by a statement from a regulating agency, or by litigation. It is beginning to get out of hand. It is not hard to imagine that a buyer would incur damages from this, and my past experience as an attorney tells me that with damages comes litigation. Many times, boxes are packed, moving trucks are in motion, and painters are scheduled. Not to mention the simple fact that the buyer is paying for a property they can't access. Because of this and other possible delays, I try not to schedule REO closings for Fridays; however, many times the REO seller chooses the closing date in their addendum. Also, I advise buyers that REOs often close late due to seller and escrow delays. This is just another delay to watch out for when buying an REO.

I specialize in helping people navigate the process of purchasing foreclosed properties here on the Central Coast. If you would like a list of bank owned properties (REOs) in the Santa Maria, Lompoc, or surrounding areas, send an email request to me at tni@mintprop.com. Or give me a buzz at (805) 878-9879 and I will set up a personalized tour of homes for you.

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

*Based on the information from the Central Coast Regional MLS. The Association, the Multiple Listing Service, nor 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. Buyers are advised to consult with their own attorney for legal advice - this blog does not offer legal advice.

« Where Have all the Houses Gone in Santa Maria - Orcutt?

Mint Properties Offers New Central Coast Foreclosure Property Search

Mint Properties — Wed, 27 May 2009 23:01:17 -0500

I would like to announce a new foreclosure property search on my website: www.BuyCentralCoastForeclosures.com. Potential buyers can search for pre-foreclosure, auction, and bank owned properties. So, you can find information on properties throughout California once they have a Notice of Default (the first step in foreclosure) filed. Some of these properties are already listed as short sales on the local MLS. In some of the cases, the owners are still trying to work out terms for a deed in lieu of foreclosure, catch up on payments, or get a loan modification from the lender. And, if they are successful in working out a loan modification those properties will not hit the retail market for homes. Those that complete the foreclosure process at auction (trustee's sale) will come back as bank owned properties.

I specialize in helping people buy short sales and foreclosed properties. If you would like a list of foreclosure properties currently offered for sale, or are interested in listing your home as a short sale, send me an email at tni@mintprop.com, 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.iLovetheCentralCoast.com
www.SellMyCentralCoastHome.com
www.BuyCentralCoastForeclosures.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.

Another Twist to REO Contracts in the Santa Maria CA Market

Mint Properties — Thu, 21 May 2009 09:02:51 -0500

I just received a counter offer back on a Bank of America property (formerly Countrywide) with a new twist that I haven't seen before in REO contracts. Countrywide officially became Bank of America Home Loans about two weeks ago. I've sold quite a few Countrywide REOs and was used to how they did things. However, it appears that the switch over to Bank of America has changed some things.

This counter offer indicated that an "over list price offer shall not be contingent upon property appraising at purchase price." So, if you bid over the purchase price, you must be able to and willing to pay that price regardless of what the property appraises for. On the one hand, this may discourage buyers from overbidding properties and then hoping that the appraiser will save them from their own bad judgment. Also, some buyers bid way over what is reasonable as a strategy and then use the appraisal to end up paying a price that other bidders most certainly would have been willing to pay. A clause like this may cut down on that type of behavior.

However, where buyers bid up a property $5,000 or $10,000 over current values in an effort to win a bid in this competitive market, their fate may rest on that particular appraiser's viewpoint of whether our market has stabilized or is still declining. For buyers who are not cash heavy, and cannot make up the difference, this can place yet another obstacle in front of them.

REO contracts are notoriously one sided in favor of the bank, but I had not seen this particular term in another REO contract until now. Ideas in the REO world tend to spread like wildfire; once the bank's in house counsel learns that another bank is writing in a particular term they many times want to toss it into their standard agreement as well - after all why not? So, if this catches on, we may unfortunately see more and more of it. I hope it is not a sign of more to come.

I specialize in helping people buy foreclosed properties here on the Central Coast. If you would like a list of bank owned properties (REOs) in the Santa Maria, Lompoc, or surrounding areas, send an email request to me at tni@mintprop.com. Or give me a buzz at (805) 878-9879 and I will set up a personalized tour of homes for you.

*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. Buyers and sellers are advised to consult with their own attorney for legal advice - this blog does not offer legal advice.

The Santa Maria CA Market is Tough on Buyers

Mint Properties — Sun, 17 May 2009 11:00:17 -0500

Currently, there is intense competition among buyers in the Santa Maria market. If this is a buyer's market, it sure doesn't feel like it anymore. Indeed, with the banks calling almost all the shots in the under $300,000 market (short sales and foreclosures), it certainly feels like a sellers market.

There are 442 active or contingent listings in Santa Maria and Orcutt. However, over half of those listings (248) are contingent short sales, and only 35 are active REO listings. The contingent short sales are in the waiting stage, i.e., waiting on bank approval of their terms. The REO (bank owned) listing inventory appears to have shrunk in the last couple of months, with buyers waiting on the sidelines to pounce on the next bank owned listing.

It is not unusual to find that a foreclosure listing has received 15 offers. As a result, buyers are also heavily concentrating on short sale inventory. Multiple offers on the first day are also quite common for short sales. 271 units are pending, 49 of those are short sales, and 128 of them are REOs. In the past 30 days, 128 single family residences were sold in the Santa Maria - Orcutt market; 68 of them were REOs, and 31 were short sales.

In this fast moving market, emailed property listing alerts are a must. If you would like email alerts or a list of available homes in the Santa Maria or Orcutt area, send an email to me at tni@MintProp.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Tni LeBlanc, JD, M.A., 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.

What not to do when selling your Santa Maria CA home

Mint Properties — Wed, 01 Apr 2009 07:53:28 -0500

Home sellers often ask what they can do to make their home sell quickly for the price they want. I believe that this is a great market for realistic sellers. Realistic meaning sellers who do not expect to get housing boom era pricing for their homes. There is actually a shortage of easy to buy homes on the market in the Santa Maria, Orcutt, and Lompoc markets. The market is clogged with short sales that often sit stagnant waiting on bank approval. Homes and condos that are priced right are receiving multiple offers. That being said, time and time again I see sellers make critical mistakes when trying to sell their home.

1) Don't make your home difficult to be shown. Some home buyers give their agents a lot of notice about viewing homes. But I've found that many if not most give very little notice. Or, by the time they arrive in a real estate agent's office they may have completely changed their mind about what type of house they want to buy. As a consequence, homes that are easy to show with very little notice get shown more often and receive offers quicker than the home that can only be shown with 24 hours notice, with the listing agent present, on Saturdays between 1pm and 1:30pm. If you have to make some showing restrictions, try to make your home available when most buyers want to see homes, on weekends and after work.

2) Don't stick around and make conversation with potential buyers. You are not a salesperson, that's why you hired an agent! Most buyers will feel obliged to listen and follow you around the home, but leave feeling that they didin't get a chance to truly experience the home. They want an opportunity to envision themselves in the home. The seller's presence weighs heavily on the mind of the buyer and most are distracted by it. I've found that often buyers will ask to see the home again, hoping that the next time the seller will not be present. If you have to be home, try to stay out of the way and let the agent do the showing, and only answer questions that are directed to you.

3) Don't price your home too high and risk riding the market down. Pricing your home too high in this market is a dangerous bet. If there haven't been any foreclosures in your neighborhood, or there are none currently listed, you may feel that you can try out a higher price. However, the moment a foreclosure hits the market in a comparable neighborhood, it will likely determine what you can ask for your home. It is better to begin with a reasonable price than to be hammered by a foreclosure that pops up. Timing is very critical in this market, if you price your home at $400,000 when it should be priced at $350,000 and wait, a comparable foreclosure may pop up at $320,000, and now $350,000 isn't even so appealing to a buyer. This happens often as foreclosures are deliberately priced below market in order to sell fast.

If you would like a market analysis of your Santa Maria or Orcutt home, send an inquiry to me at www.SellMySantaMariaHome.com. If you owe more on your mortgage than your home is worth, you may be able to short sale your home, if you would like to set up a short sale consultation, please contact me at (805) 878-9879.

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

Central Coast Investor Tip — 20% Down Payment Required

Mint Properties — Mon, 30 Mar 2009 00:04:27 -0500

For those looking to buy your first rental property, or pick up an extra one now that prices make sense again, be aware that lenders have rolled back the down payment requirements for investment property. Most lenders I polled recently say that a 20% down payment is required for an investment property. Many of us remember when lenders required a 30% down payment for investment property, and I wonder how long it will be until we are back to those days. Lenders slowly but surely decreased the down payment requirement for investors during the housing boom and have slowly but surely increased that obstacle again. So, many would be investors who were waiting for prices to drop are now locked out of the market by down payment requirements. It is an interesting phenomena as prices drop lower and borrowed money becomes harder and harder to obtain.

Hidden Pines Santa Maria, CA Gated Community

Mint Properties — Thu, 26 Mar 2009 23:32:35 -0500

Hidden Pines is a lovely little gated community located in northwest Santa Maria. It boasts a private park and streets, and borders the Santa Maria Riverbed walking trail. The homes were built approximately 15 years ago and feature tile roofs and 2 car garages. The development is surrounded by other popular developments, Cherry Blossom Ranch, Essex at Willow Creek, and the gated community of Regency Estates. Hidden Pines offers convenient access to Highway 101 and is walking distance to Presiker Park. The association fee is about $65 - $75 per month. The last resale I found for the development was a bank owned 3 bedroom, 2 bath, 1400 square foot home which sold for $200,000 on January 30, 2009.

Hidden Pines

If you would like information or a list of available homes in the Hidden Pines development or in the Santa Maria or Orcutt area, send an email to me at tni@MintProp.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

The Santa Maria Real Estate Market is Hot!

Mint Properties — Mon, 23 Mar 2009 22:24:43 -0500

I know the media is saying that the real estate market is in the dumps. And I guess if you were hoping to get housing boom era prices for your home, it is. But if you are a Santa Maria or Orcutt home owner who needs to sell your home, you should know that the Santa Maria real estate market is hot! Why do I say that? Because homes that are priced in line with today's market that are not short sales, sell in less than a week. I feel as if this is a hidden secret in today's market place. Everyone believes that it is hard to sell your home right now, but even short sales that are well priced are receiving multiple offers. What does this mean if you need to sell your home? Don't despair, even if you owe more than it is worth. Current inventory is not meeting demand. I have plenty of buyers who are waiting for the right home to be listed.

If you would like information or a list of available homes in the Santa Maria or Orcutt area, send an email to me at tni@MintProp.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Buyer Tip — Use a Local Lender when Buying Central Coast Property

Mint Properties — Sun, 22 Mar 2009 17:54:16 -0500

In the past couple of weeks, I have had two clients shop for mortgages online after securing a contract on a home. Both came back with inaccurate information. My advice to both was to use a local lender. It is good practice and natural to shop your loan rate and terms, and online shopping is very appealing because you can do it at your convenience. But, I highly advise my clients to shop their loan with local lenders for several reasons inspired by experience:

1) Responsiveness. Local lenders tend to respond quickly. Even if you are considering using a national company, I find you get a quicker response by approaching a local agent of that company rather than filling out a form on a website and waiting for a call back. Recently, a client of mine wanted to use a lender that he had a long established relationship with who was out of Tennessee, but due to time zone differences and a total inability to reach them on weekends, he could never get what he needed when he needed it. He ended up switching to a local lender.

2) Accuracy of information . In my example noted at the start of this post, both my clients were given bad information. One was told by an online lender that they could offer a 5% conventional loan in our market. However, I cautioned my client about this and advised further inquiry. When he pressed the issue with the lender, they did the research and acknowledged that the product was not available in our market - something that a local loan officer would have know right off the bat. The other client was told he could avoid the FHA upfront mortgage premium if he put 5% down. This information turned out to be totally off the mark and probably the result of an inexperienced loan agent answering the company's toll free number.

3) Transaction delays. Most of my clients are buying bank owned properties right now. In these transactions you are dealing with delays because the seller and sometimes the listing agent are not local. In addition, bank sellers almost always demand that an out of town escrow company be used as well. This inevitably adds to delays in a transaction. Adding an out of town lender to the mix can make an already difficult process more complicated with regard to timelines.

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

What is a “contingent” listing on the Central Coast market?

Mint Properties — Sat, 21 Mar 2009 14:22:16 -0500

Approximately 25% of the 500 active single family listings in the Santa Maria California market are "contingent." Buyers run up against this time and time again, and often wonder, "what exactly is a contingent listing?" Before the housing bust, "contingent" was primarily used when a seller accepted a contract that was contingent upon another home selling. For example, if I offered to buy your home but I needed to sell my own home to make that happen, I could make an offer contingent upon my home sale. The seller could then accept that offer and continue to offer their home as available, and if they received a better, or non-contingent offer before I removed that contingency, they could serve notice upon me (the first buyer) to either remove that contingency or walk away from the deal.

Now that the foreclosure driven markets are dominated by short sales (almost half of the Santa Maria and Orcutt market is short saled), contingent usually means contingent upon bank approval, i.e., the seller has received at least one offer that they have accepted and presented to the bank for approval. It does make sense to shop contingent listings because buyers are playing quite a musical chairs game right now. Since there is not much available that can be bought easily, buyers shop short sales and REOs at the same time. Many times when an approval comes in the original buyer is no longer interested. Also sometimes a short sale listing that is marked active really is contingent but the broker has instructed the seller not to sign any offers until they have bank approval - so they continue to market they property as active even though they have at least one offer on it.

If you would like a list of Central Coast short sale properties, send me an email at tni@MintProp.com. Also, keep in mind that contingent listings from the Central Coast Regional MLS do not show up on Realtor.com, but they are displayed on my website CentralCoastRealEstateSearch.com. If you would like to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

*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. Not intended to solicit listings currently under contract with another broker.

2008 Year End Tepusquet Canyon Market Update

Mint Properties — Fri, 20 Mar 2009 02:58:19 -0500

Looking for a home off the beaten path? The small rural communities of Sisquoc, Garey, and the Tespusquet Canyon area are nestled in what has become known as Santa Maria valley wine country. Last year, a total of 8 properties were reported sold on the MLS in those areas. The lowest resale was a 2 bedroom 1 bath bank owned cottage on a 6500 square foot lot in Sisquoc which sold for $115,000 in February 2008. Also in Sisquoc, a charming and well kept 2 bedroom 1 bath cottage on an acre of land on Foxen Canyon Road sold for $360,000 in November 2008. And in Garey, a 2 bedroom, 2 bath, 1000 square foot home sold for $272,500.

In Tespuquet, a 2000 square foot, 3 bedroom, 2 bath gated custom home on 2.5 acres sold for $480,000 in May 2008. Also, a 15 acre parcel with a 3 bedroom, 2 bath main house, and a separate guest home, 6 stall barn, and private well sold for $503,000 in October 2008. The most expenive re-sale reported was 160 acre plot with a small cabin on it which sold for just under a million at $995,000 in May 2008. If you are interested in buying a selling property in the Tepusquet, Sisquoc, or Garey areas, send me an email request at tni@mintprop.com, or give me a buzz at (805) 878-9879.

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

Buying Central Coast Foreclosures: Pre-Qualification Blues

Mint Properties — Mon, 16 Mar 2009 07:49:03 -0500

Home buyers focusing on central coast foreclosure properties are running up against lender pre-qualification requirements when bidding for bank owned properties. Many bank owned (REO) property listings require that potential buyers get pre-qualified with their company in order to place a bid on a property. Countrywide, Wells Fargo and Fannie Mae (Express Path) listings frequently have this requirement. Generally, buyers are not required to use that lender for the purchase; however lenders sometimes offer incentives to use them such as waiving appraisal and/or credit fees. Many buyers understandably object to getting an additional credit inquiry, or essentially opening their financial life to the party that they are negotiating with.

Where buyers have refused, and I have submitted offers without the requested pre-qualification, I received phone calls and emails from REO listing agents saying they will not even present the offer without the requested/required pre-qualification. This type of requirement adds to the current competitive buying environment. For example, if a buyer has a complicated credit picture and cleared their credit hurdles with one lender, they may be confronted with clearing those same hurdles in order to bid on a house they really want. That can take time, and time can mean their offer is not presented in time for consideration. Buyers should be aware that they may run up against this and other requirements when buying foreclosed properties on the central coast.

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

Village of Northpoint Condos, Orcutt CA Market Update

Mint Properties — Sat, 07 Mar 2009 07:35:38 -0600

Village of Northpoint Condos

The Village of Northpoint condominium community offers residents a tucked away feel in the heart of Orcutt. Located just off Foster Road and within walking distance of both Righetti and St. Joseph's High Schools, this development boasts a pool, clubhouse and tennis courts. Mature trees line the blacktopped streets dotted by clusters of townhomes with blue tinted tile roofs. There are 3 and 4 bedroom plans, each with the bedrooms upstairs and the main living space and half bath downstairs. Units have a patio, and a balcony off the master suite. Monthly association dues range from about $220 - $250 per month.

Entrance to Village of Northpoint

Looking at sales in the 3 month span from November 2008 - January 2009, there have been 4 sales in Northpoint, with an average selling price just under $200,000. All of the units were bank owned. Interestingly, all these sales took place in January. The highest re-sale was a 3 bedroom unit on Shady Lane which sold for $209,000. The only 4 bedroom unit sold was on Northpoint and went for $205,900. The least expensive unit sold was on Parkview and sold for $185,000.

Clubhouse & Pool at Northpoint

If you would like information or a list of available Orcutt condos, foreclosures, or short sales send an email to me at tni@mintprop.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Santa Barbara County Property Tax Informal Assessment Review Requests Due March 15, 2009

Mint Properties — Sat, 07 Mar 2009 01:44:54 -0600

For those who wish to request an informal property tax review from the Santa Barbara County Assessors office, the deadline to apply is March 15, 2009. It appears that the deadline for an informal review has moved up two months, as the previous year's form had May 15th as the deadline to apply for informal review. By applying, you can submit comparative sales to help the Assessor's office come up with a reasonable value for your property for tax assessment purposes. This is very important to home owners who purchased during the housing boom. If you then disagree with the Assessor's opinion of your home's value, you can subsequently appeal their decision. If you need help finding comparative sale info, send an email request to me along with a short description of your property and I'll be glad to send you sold property information. Or, better yet, just give me a buzz at (805) 878-9879.

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

Avila Beach MLS Home Search & 2008 Market Update

Mint Properties — Wed, 04 Mar 2009 06:47:05 -0600

There were 18 sales reported on the local MLS in Avila Beach in 2008. The lowest re-sale was a $300,000 manufactured home in Indian Hills, an age restricted park in San Luis Bay Estates. The monthly association dues on that 38 year old unit are about $285. The most expensive home sold during that time period was a 2 bedroom, 3 bath, 2800 square foot home in San Luis Bay Estates which sold for $2.3 million. The average price was $763,500, with an average days on market of about 4 months, and selling for abut 97.4% of list price, for about $407 per square foot. There were no short sales or foreclosures reported, so unlike the cities in southern San Luis Obispo County, the 2008 Avila Beach market remained untouched by foreclosure activity.

Looking for property in Avila Beach, CA? Search Avila Beach homes, condos and townhomes on my websites: www.CentralCoastRealEstateSearch.com, www.iLoveFiveCities.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible sale of your property, you can send an inquiry to me at www.SellMyCentralCoastHome.com, or give me a buzz at (805) 878-9879.

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

Santa Maria CA & Orcutt CA New Home Buyer Alert - $10,000 California Tax Credit

Mint Properties — Mon, 02 Mar 2009 02:57:11 -0600

The California Association of Realtors reports that the newly signed California budget provides for a tax credit of up to $10,000 for new home buyers. The credit will apply to purchases made between March 1, 2009 and March 1, 2010. Buyers are eligible for a credit equal to 5% of the purchase price of the home up to a maximum of $10,000. It does not apply to the purchase of existing homes; but it does apply to any buyer (not just first time buyers) as long as they are purchasing a primary residence. Also important to those sitting on the fence; it is limited to the first 10,000 new home purchases - although I have no idea how they will keep track of this! And if you are a first time home buyer, you can double up and use the new federal $8000 tax credit as well.

This can come in handy to those considering buying a new townhome in the gated community of Lavigna in southwest Santa Maria, or the master planned community of Rice Ranch in Orcutt. I would recommend taking a buyer's agent with you when looking at new homes. If you bring an agent with you on the first visit, most builders will pay your agent's commission. A buyer's agent can provide great advice during the process as the sales agents in the office usually exclusively work for the seller/builder. A buyer's agent can give you advice about which options will help you resell the unit, as well as current comparative sales information for similar new and re-sale units. In addition, I also attend contract signing and final walk through with my clients.

If you would like information or a list of new home developments, or available foreclosures, condos, or short sales in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

*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. Potential buyers are advised to consult with a tax professional.

River Oaks Market Update & Santa Maria CA MLS Home Listing Search

Mint Properties — Sat, 28 Feb 2009 06:29:57 -0600

River Oaks

River Oaks is a newer subdivision of homes located in northeast Santa Maria. Building began around 2001 and there are at least 5 different floor plans. The subdivision is home to Taylor Elementary School which lies at the center of the development, a man made lake, and direct access to riverbed adjacent biking and walking trails. There are two one story plans, both are smaller 3/2 homes at about 1400 sq.ft. and 1600 sq.ft.; the two story plans begin at about 1900 sq.ft. and go up to at least 2700 sq. ft., depending on the options the original owner selected. Some of the 2 story models have 3 car garages, one plan has a downstairs master bedroom, and at least one of the other plans has a downstairs guest bedroom option. Looking back at the 3 month period from November 2008 - January 2009, 17 homes sold in the River Oaks subdivision, with an average selling price of about $284,000, and an average list price of about $294,000.

Walking Trails at Riverbed

Sold listings were on the market an average of 77 days, were about 1900 sq.ft., and sold for about $155 per square foot. 12 of the 17 sold homes were REOs, 3 were closed short sales, and only two were regular sales. 88% of the sold activity in this neghborhood was forelcosure related; so, like many other developments that were built during the housing boom River Oaks is now overloaded with foreclosures during the housing bust. The smaller one story models sold for between $250,000 - $268,900; the larger two story models sold for between $284,000 - $338,000. Currently in River Oaks, there are 14 homes that are active, contingent or pending. 5 active listings, 1 contingent listing, and 8 pending listings. 7 are REOs (bank owned) and 7 are short sales - so all the current listings are either foreclosures or pre-foreclosures. Current listings have been on the market an average of 116 days, and have an average asking price of $293,000.

Lake at River Oaks

If you would like information or a list of available home foreclosures, condos, or short sales in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: iLoveSantaMaria.com, SantaMariaRealEstateSearch.com, & BuySantaMariaForeclosures.com (map based search), If you are considering selling and would like a list of nearby sold properties for comparison, send me a request at SellMySantaMariaHome.com. If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Buying Central Coast Foreclosed Properties at Auction

Mint Properties — Fri, 27 Feb 2009 08:11:16 -0600

I attended a foreclosed home property auction hosted by Hudson & Marshall in Ventura last evening (February 24, 2009). Fortunately, my client was successful in his bid so it was worth the trip down for both of us. He was also able to save about $80,000 off the list price of the property. It was an exciting event and we were both still on a high while we waited with the other winners to sign contracts. All the winning bids are subject to investor/bank approval which will take about 5-7 days to obtain, so we will know if the deal will stick in about a week. More banks are turning to auctions to sell slow moving REOs; it is a method which allows them to quickly clear inventory off their books.

Often I am asked by clients about buying properties at auction, but usually after hearing the details about how property auctions work, they decline to participate. Indeed, you have to be a serious buyer willing to accept a certain degree of risk to buy at auction. The terms of sale usually include no contingencies for inspections or financing. What does this mean? It usually means you have no opportunity to inspect the property. However, in some cases, the properties are listed on the local MLS, and you can view them prior to the auction. And, if the listing agent allows, you could have a home inspector check the property out prior to the auction date. But, you would be paying for an inspection without knowing if you were going to be the winning bidder. (Also keep in mind that I have experienced another auction company deliberately restricting access to a property immediately prior to auction).

Buying without an inspection contingency does mean that if you were to discover a problem with the property and wanted to cancel the sale, you would have to walk away from your deposit and you could be pursued for more if the seller showed additional damage by your default (up to 3% of the purchase price if a liquidated damges provision was included in the contract, or more if no liquidated damages provision was included). Also, buying without a financing contingency means that if your financing falls through, or the property doesn't appraise, and you then cannot perform, you cannot back out of the deal without losing your deposit. This particular auction required buyers to bring a $5000 cashier's check to the auction for the deposit.

If you decide that you want to buy at auction, a real estate agent can help you properly prepare for the event. Auctions typically pay the buyer's agents commission, so you wouldn't be adding to your expense by having representation. In addition to helping you view the property prior to auction, an agent can help you through the pre-approval process, obtain an advance copy of the auction company's purchase contract and a preliminary title report on the property. If you would like a list of Central Coast properties currrently on the MLS that are up for auction, send me an email at tni@mintprop.com. You can also search for properties on my websites: www.CentralCoastRealEstateSearch.com, & www.BuyCentralCoastForeclosures.com (map based search). If you have questions about a specific property, I can be reached at (805) 878-9879.

Bank Owned Bidding Wars in the Santa Maria - Orcutt CA Foreclosure Market

Mint Properties — Sun, 22 Feb 2009 21:06:48 -0600

Is it a great time to buy? Yes. Interest rates are at historic lows, Congress just passed an $8000 tax credit for first time buyers, and prices just keep getting better and better. There are plenty of folks who are taking advantage of this opportunity. As such, jumping into the current market for foreclosure properties in Santa Maria - Orcutt CA can be a rude awakening for potential buyers who must compete for homes in this "buyer's market." REOs comprise the majority of sold properties in the Santa Maria and Orcutt housing market. The market is clogged full of short sale listings which take a good deal of time to gain lender approval and in the meantime languish. Thus, seasoned buyers are focused on the bank owned homes and bidding wars are common for the most desirable listings.

What can cause a bidding war to erupt? Well given the condition of most foreclosures, something as simple as new carpet and a fresh coat of paint can cause buyers to line up. But usually a low asking price tips it off. Also, bidding wars tend to erupt over newer homes and/or homes in well-established, desirable neighborhoods. I recently bid on a newer home (where the paint and flooring were in excellent condition) that was priced about 10% below the last resale in the same development and by the time 4-5 days had elapsed there were 15 offers in total. In addition, if the asking price is very low, the chance that the listing will attract an all-cash buyer or a big down payment buyer increases.

When there are so many offers the bank does not counter to individual buyers, indeed, sometimes they merely pick out what they deem to be the best buyer and counter only to that offer. However, if they do counter, it is usually a "highest & best" counter offer. Buyers are then left in the precarious position of bidding in the dark, and if they already are the highest bidder they may be bidding against themselves. Sometimes, the banks are not looking for the highest offer, but for the best terms, and in that sense some buyers can't compete. How can you make your offer more competitive?
1) Use conventional financing rather than FHA or VA (however this typically requires at least 10% down in this market for financing); 2) increase your good faith deposit amount; 3) pay your own closing costs.

With these and other tips, I can help you write the most competitive offer to succeed in a bank owned bidding war. If you would like information or a list of available home foreclosures, condos, or short sales in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Santa Maria CA Short Sale Buyer Information

Mint Properties — Fri, 20 Feb 2009 15:06:10 -0600

With the majority of single family homes and condos being listed as "short sales" in the Santa Maria CA and Orcutt CA market, buyers are considering this type of listing more often. A "short sale" is a property listing where the owner owes more than the homes' current value, but still desires/needs to sell. Unfortunately, this is not an uncommon position for sellers in Santa Maria CA. Due to the wild swings in property values caused by the housing boom and bust, many homeowners find themselves in this position. While many attempt loan modification, for owners who must sell due to divorce, job loss, or job relocation, a short sale is often a better option than foreclosure or sometimes bankruptcy.

After listing as a short sale, the owner accepts offers subject to lender approval. The lender must then approve less than the loan balance as payoff and allow the transfer of ownership to the buyer. The trickiest part of the short sale is obtaining lender approval. Many times that process can take as long as 90 days. And even though you may have waited 90 days, the short sale still may still not be approved by the lender. There are many factors that could affect whether the bank accepts the short sale. And buyers should keep in mind that in this market, even the short sales are garnering multiple offers. Typically, the best time to step into a short sale is when it first hits the market, or right after another buyer walks away. Often, a short sale can look a lot like musical chairs with buyers getting tired of waiting and new buyers slipping into their seat.

Due to the stressful situations that many short sale sellers find themselves in, many buyers will discover that although the properties are listed as active or contingent, the seller is not motivated to show the property. This can happen because the process can take a long time, and sellers simply get worn out from all the showings; it can also happen because the seller has already presented an offer to their bank and has no motivation to keep presenting the property until the other buyer loses interest. Or, they may simply not be happy about essentially losing their home and are merely using the short sale process to forestall a foreclosure. Whatever the reason, buyers should be prepared for the fact that many short sellers are not overly enthusiastic about showing their homes, especially after it has been on the market for a long time.

Buyers should analyze likelihood of success before getting caught up in a short sale. They should get a preliminary title report on the property to determine if there are any additional liens on the property besides the mortgage loans, as this may complicate matters. They should be aware that if there is more than one loan on the property with different lenders, the short sale may also be difficult to accomplish. An experienced short sale agent can help guide you through this process.

If you would like information or a list of available home foreclosures, condos, or short sales in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: www.iLoveSantaMaria.com, www.SantaMariaRealEstateSearch.com, & www.BuySantaMariaForeclosures.com (map based search). If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

Santa Maria CA Foreclosure Buyer Alert - $8000 First Time Home Buyer Credit Approved

Mint Properties — Sat, 14 Feb 2009 07:44:58 -0600

If you are sitting on the fence about buying, Congress just gave you another reason to jump into the market for foreclosures in Santa Maria, CA. According to James Liptak, President of the California Association of Realtors, the recently passed stimulus bill modestly increases the first time home buyer credit from $7500 to $8000. But more importantly, buyers now do not have to pay the credit back as long as they stay in the home a minimum of 3 years. The bill also extended the time period for this credit through the end of the year. This is fantastic news for first time home buyers in the Santa Maria CA market, where they can benefit from significant price recessions in a foreclosure driven market, interest rates at historical lows, and now a substantial tax credit available through the end of 2009.

Buyers should take note that even though prices are declining and and it is a buyer's market; it is still incredibly competitive to buy Santa Maria CA foreclosures. Lots of people think it is a great time to buy. There are only 440 available homes and condos on the market in Santa Maria - Orcutt CA and only 85 are REOs (about 20%), while there are 239 properties in escrow and 166 of them are bank owned properties (about 66%). So, the bank owned foreclosures (REOs) are the hot item right now; they also tend to offer the best prices and garner multiple bids from buyers.

I would advise first time buyers to begin looking long before the Fall season if they want to be sure that they close escrow before the end of the year. Often it can take 2-3 months for a suitable bank owned property to become available, and since most first time buyer's use FHA or VA financing, it can then take 45-60 days to close escrow given the requirements of these loan programs coupled with the bureaucracy of dealing with a bank seller. So, buyer's should make sure they have enough lead time to meet the deadline.

If you would like a list of foreclosure properties in Santa Maria CA or Orcutt CA, please send me an email request at tni@mintprop.com, or call me directly at (805) 878-9879. You can also search for properties on my websites: www.iLoveOrcutt.com, www.iLoveSantaMaria.com, www.BuySantaMariaForeclosures.com (map based search), www.SantaMariaRealEstateSearch.com.

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

Mission Creek Village Condos vs. Oak Creek Villas (Santa Maria CA & Orcutt CA Condos)

Mint Properties — Wed, 11 Feb 2009 23:18:41 -0600

The Mission Creek Condos and Oak Creek Villas were built by local builder, Inland Pacific, who is also currently finishing up Pacific Crest in Westgate Ranch. Oak Creek and Mission Creek offer the same basic floor plans and amenities; however, there are subtle differences for buyers to consider. Oak Creek Villas condos are slightly older; they were built beginning around 2001. Mission Creek condos are slightly newer as building began around 2004. Both offer two floor plans: a 2 bedroom/2 bath unit and 3 bedroom/2 bath plan, each with room for a stackable washer dryer. The square footage of the 2 bedroom and 3 bedroom units are essentially the same, somewhere between 1100 - 1200. However, the 2 bedroom unit has a larger living space than the 3 bedroom plan. Downstairs units have patios, and upstairs units have balconies, each with an extra outside storage closet. Both condo developments offer a pool, and a community clubhouse. Oak Creek also features a tot lot.

Walkway at Oak Creek Villas

Mission Creek Village and Oak Creek Cillas are located on the south end of Santa Maria. However, for those who want to get out and walk to restaurants and shops, the Oak Creek condos, which sit on McCoy (directly across from Arborwalk), may be preferable. Another important distinction is that the Mission Creek condos previously sat on the dividing line of the Orcutt school district. (Buyers are advised to consult with the local school district offices to determine current boundary lines for school district attendance.) There is also a slight difference in the monthly dues of each development. Oak Creek charges about $180 per month, and Mission Creek's monthly dues are about $150. Asking prices currently range between $169,900 and $199,900 in these communities. Recent sales include a 3/2 unit in Oak Creek which sold for $168,000, and a 2/2 unit in Mission Creek which sold for $175,000.

Tot Lot at Oak Creek Villas

If you would like information or a list of available condos in the Santa Maria - Orcutt CA area, send an email to me at tni@mintprop.com. You can also search for properties on my websites: www.SantaMariaRealEstateSearch.com, www.iLoveOrcutt.com, & www.BuySantaMariaForeclosures.com (map based search), If you are considering selling and would like a list of nearby sold properties for comparison, send me a request at www.SellMySantaMariaHome.com. If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

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

Arroyo Grande CA 2008 Market Update & Free MLS Listing Search

Mint Properties — Tue, 10 Feb 2009 07:37:38 -0600

In 2008, a total of 276 homes and condos sold in Arroyo Grande, CA. 243 were single family homes, and 33 were condos or in planned unit developments. Average home price was approximately $648,000, $331 per sq ft., and sold after 130 days on market. 54 of the sales were bank owned properties (REOs), and 10 were closed short sales. So, a significant amount of sold listings (a little over 20%) were foreclosure related.

The lowest resale home price was a 2 bedroom, 2 bath, bank owned twin home in an age restricted community that was 1064 sq. ft. and sold for $190,000. $650,000 would have purchased a new 3 bedroom, 4 bath, 2330 sq. ft. lakeside home with granite countertops and a golf cart bay in the gated golf course community of Cypress Ridge.

The average price for condos and PUDs was about $320,000, $276 per square foot, with 91 days on market. The lowest priced resale was a 1 bedroom, 1 bath, REO (bank owned property) condo unit on Brisco which stayed on the market for 222 days and finally sold for $154,500. $330,000 would have purchase a 3 bedroom 2.5 bath townhome with 1589 sq.ft. and an attached 2 car garage; that listing sold after 56 days on market.

If you would like a list of golf course, REO (bank owned), condo, or short sale properties in the Arroyo Grande area, send an email request to me at tni@mintprop.com. Or search the MLS on my websites: www.iLoveFiveCities.com (map based search), or www.CentralCoastRealEstateSearch.com. If you are considering selling and would like a list of nearby sold properties for comparison, send me a request at www.SellMyArroyoGrandeHome.com. If you have questions about a specific property, or would like to set up an appointment to consult about a possible short sale of your property, I can be reached at (805) 878-9879.

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

Lompoc CA & Vandenberg Village CA 2008 Market Update & MLS Listing Search

Mint Properties — Thu, 05 Feb 2009 23:48:28 -0600

There were a total of 400 homes sold in the Lompoc and Vandenberg Village areas in 2008. 346 were detached dwellings, and 54 were attached residences. Of the 400 sold, 226 were REOs (bank owned) and 31 were short sales. So, a total of 257 out of 400, or 64% were foreclosure related sales. Thus, the Lompoc market is thoroughly dominated by foreclosure activity; it is the primary force moving the market.

On average homes sold for $278,000 with 78 days on market. Average price for REOs was about $234,000 with 48 days on market. Closed short sale average was about $286,000 with 112 days on market. So, short sales stay on the market over twice the amount of time as REOs, and this reflects the additional time needed to obtain lender consent to the sale.

Currently, there are 128 active listing with an average asking price of about $315,000 and 152 days on market, 64 of those listings are short sales, and 23 are REOs. In Vandenberg Village, there are 28 active listings with an average asking price of approximately $396,000.

If you would like a list of forelcosure properties in the Lompoc or Vandenberg Village area, just send me an email at tni@MintProp.com, or search the MLS on my sites: www.iLoveLompoc.com, www.VAFBRealEstateSearch.com, or a map based search at www.BuyCentralCoastForeclosures.com. If you are ready to jump into the market, give me a buzz at (805) 878-9879 and I'll set up a personalized tour of Lompoc CA and Vandenberg Village CA properties. Those interested in selling can send me a request at www.SellMyLompocHome.com.

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

Buying Bank Owned Homes (REOs) in the Santa Maria CA & Orcutt CA Market - Should I Use FHA/VA or Conventional Financing?

Mint Properties — Tue, 03 Feb 2009 03:04:34 -0600

Currently, the market for bank owned properties in Santa Maria CA and Orcutt CA is very competitive. In the last couple of weeks, I placed offers for well priced listings where there were at least 10 other offers. REO listings fly off the market with multiple bidders in just a few days when they are offered in good condition and at the right price. You will tend to see the most intense competition where the bank-seller chooses to fix up properties before they list them. Not many are doing this - but it is happening more and more. "Fixing up" can be as simple as recarpeting and repainting a home. And even though these finishing touches don't cost much they can set a cash strapped buyer's heart on fire as most foreclosure listings need paint and carpet at a minimum. Good asset managers know this, so they do cosmetic repairs to the property, price it at the low end and then sit back and cherry pick the best offer.

When the bidding gets competitive, buyers are often left to wonder how asset managers make their decisions about which offer to choose. If you have 15 offers how do you select one over the other? The obvious selection would be based on the net to the seller, but there are other factors. In particular, time and time again, I see FHA buyers passed over for buyers using conventional financing. That is not to say that FHA financing is not being used in this market- it is. However, when the situation turns competitive FHA and VA buyers have difficulty edging out conventional buyers even when they offer more money for the property.

Some asset managers view an offer with more down payment as more substantial, and most FHA buyers are putting down only the minimum of 3.5% down and VA buyers are usually putting nothing down. Another reason why FHA (or VA) offers are sometimes disfavored is because the FHA or VA appraiser may indicate repairs to meet their standards; those repairs must be made in order for the transaction to close. Bank-sellers usually want to sell foreclosed properties with as little expense as possible, so many asset managers do not want to take the risk that the buyer will demand that the seller make repairs to the property in order to close. Of course, FHA buyers could pay for these repairs, but most are first time buyers who have just scraped together enough for their down payment and some closing costs.

Unfortunately for buyers, conventional financing is more difficult to obtain in this market. Some lenders require 10% down for conventional financing, but at a minimum the lowest figure I've heard lately is 5% for a home (not a condo). Also, if you are putting less than 20% down on a conventional loan, the requirement for your credit score could be as a high as 720. This leaves FHA as the only option for many buyers, even if they have more money to put down than the 3.5% FHA minimum requirement.

If you have any questions about how to succeed in buying bank owned properties with FHA or VA financing in this market, please feel free to give me a call at (805) 878-9879, as I have a great deal of experience helping FHA/VA buyers into homes in this foreclosure driven market. Also, if you would like a list of foreclosed properties in the Santa Maria or Orcutt areas, send an email request to tni@MintProp.com, or search for properties on my websites: www.iLoveSantaMaria.com, www.iLoveOrcutt.com, www.BuySantaMariaForeclosures.com, www.SantaMariaRealEstateSearch.com.