100_2885Carlsbad, CA–Over the past decade, there has been a flurry of home remodeling in San Diego County–particularly in coastal areas, where building activity first blossomed. During the last ten years, tile and formica surfaces in kitchens and baths have been replaced with natural stone products, while stainless steel appliances dominate kitchens. Popcorn has been scraped from ceilings and energy efficient dual-paned windows are replacing their single-paned predecessors.

Now, the staircases in 1970’s and 1980’s homes are being replaced.Being torn down are enclosed staircases, along with those stem walls withold staircasewrought iron toppers and 2×6 handrails (see photo at right). Some are being replaced because of safety issues that could result in a child’s head could get stuck between the stair rails–or a disastrous fall .

We had the opportunity to interview San Diego’s original staircase replacement expert, Gregg Kuzara, who happened to spend a few days in our home performing his wood and metal magic. He explains that because of the advancement in tools, technology and trade that what might have cost $30,000 (or much, much more) just 15 years ago can now be had for perhaps $10,000.

Where once wrought iron staircase pickets had to be handcrafted, they can now be largely manufactured offshore. Cordless tools, computer drafting and other construction advances have made staircase replacement far more efficient–and far more affordable, than we had imagined. Count on teardown and reconstruction taking at least a week–and probably longer.

The results, though, might add an entirely different dimension to your home. As we show homes throughout North San Diego County, it is easy to see the difference newer wrought iron, railings and woods can make to older barriers. And finally, this article has nothing to do with what we are paying for our staircase replacement. Consider this a heartfelt and unpaid endorsement.

Would we recommend Gregg Kuzara and his San Diego staircase replacement services? We would–in a heartbeat!

Click to search all listed homes for sale in San Diego

 

 

Smiling San DIego ClownsCarlsbad, CA–This past year has been tough for both San Diego real estate sellers–and buyers–and both sides of the fence have had to wonder if they are being tricked or treated by market conditions.

On one hand, home sellers hear that we are in the toughest market for San Diego home sales in years. Prices have dropped off the cliff and these home sellers have heard of neighbors who finally took their home off the market after trying to sell for a year or more.

On the other hand, we have buyers who have made multiple offers on multiple properties (usually San Diego’s fabled short sales and foreclosures), and have given up hopes of ever being able to buy a home in San Diego County. Their exhausted real estate agents are also about to throw in the collective towel.

So what is really selling in San Diego–and who are the succesful home buyers?

Click to continue reading....

 

Click to search all listed homes for sale in San Diego

 

 

 

 

We are seeing an increasing number of lender-generated loan modification attempts here in San Diego County, but some borrowers have just thrown in the towel.

These bloody charts say much:

 

Via Jeff Geoghan MBA - Lancaster PA Real Estate Expert (The Jeff Geoghan Realty Group, Coldwell Banker Lancaster PA):

This is one of those posts where I wish I didn't have to write it, but felt it was so important to my readers that I would be remiss not to at least talk about it.

Everyone out there probably knows somebody who is behind on their mortgage payments, looking for alternatives and likely also just finding out that their home's value has dipped below what their loan amount is.  I know some within my own personal circles.  It's a tough situation for me to advise them as a professional because it's such a personal challenge to their pride and self-worth, not to mention their plans an dreams for the family. The question we're asking is "when is this going to stop and where are we heading?"

I'm going to put up a few graphs that show the trends nationally with regards to mortgage delinquincies:

Lancaster PA foreclosures, Lancaster County Mortgage, Delinquencies

This chart is by quarter - Single-family mortgages set a new record delinquency rate in the second quarter of 2009, according to a quarterly survey by the Mortgage Bankers Association. Those of us in the real estate business see the foreclosure process (just visit the local Sheriff Sale docket to see the current numbers) but the looming delinqency-to-foreclosure issue is far, far larger.

The Wall Street Journal on 8/3/09 reported the following quote: “While subprime mortgages sparked the first round of housing problems two years ago, now "troubles are lurking further up the food chain," says Joshua Shapiro, chief U.S. economist at MFR Inc. White-collar job losses have accelerated while more adjustable-rate loans to prime borrowers are resetting to higher payments.  ‘You put all that together, it leads me to believe that the next leg down on home prices is going to come from the top,’ he says.”

The first objection someone may have would be to say "yes, but historically those who are delinqent usually get their act together and come current on the mortgage after a while".  That WAS true, but not anymore!  We call that the "Cure Rate", that is the rate of delinquencies that go back to current.  The Wall Street Journal reported on 8/24/09 about a Fitch analysis that found that the Cure Rate from 2000-2006 was 45% (which means about half of people fix their delinquency).  However, as of July 2009 the rate had dropped to just 6.6%!  That means that over 90% of delinquent customers are going to foreclosure.  Take a look again at the above chart...

The next thing someone will say is "well, that's the 'sand states' and not my area".  Here's the chart for all 50 states showing the same breakdown of delinquencies and foreclosures.  Guess what - most states have a significant problem, especially compared to historical figures.

Lancaster PA foreclosures, Lancaster County Mortgage, Delinquencies

Now the next thing someone may say is "aren't those loans going to get 'fixed' by a loan modification?"  I know several people right now who are applying for a Lancaster County loan modification but are waiting and waiting.  I hope it works out for them...

In reality, loan modifications are hardly making a dent.  To me, that's a burning question.  Why arent banks being more aggressive in giving customers the option to extend their loan and/or reset to a lower rate?  Why are they being SO difficult? The people I know don't want to be foreclosed.  They CAN make payments.  They just need the terms redrawn to allow them to catch & keep up.  Loan modifications are not helping us get this crisis under control.

Lancaster PA foreclosures, Lancaster County Mortgage, Delinquencies

What are the causes of all these delinquencies?  Here's a chart that is enlightening:

We hear a lot about adjustable rate mortgages being the culprit, but the reality is that it's the loss of jobs and the tanking real estate market that's the perfect storm.  See my previous post on unemployment in the nation, the state and Lancaster County.

Keep in mind, this post is not intended to give us "good news".  You may be experiencing good things in your market and that's great.  My intent is to get us thinking about the challenges that aren't going away and how we're going to address them as homeowners, agents and professionals.  I'd love to hear your ideas!

 

 

 

 

San Diego ForeclsouresThis is a program that makes a world of sense for real estate foreclosures.

Freddie Mac, even after foreclosing on a home, now offers the former homeowner the chance to either lease the home–or  buy it back as long as the occupant is employed and not engaged in a bankruptcy.

This keeps the home occupied by someone vested in the property, helps preserve neighborhood values and will likely eliminate natonal foreclosure problems much more quickly. And it’s also pretty cool that some homeowners get to stay in their homes without the disruptions that go with moving.

Freddie Mac gets it.

Freddie Mac hires representatives to contact owners of foreclosed homes to see if they would like to remain–and possibly refinance into something more affordable.

And this is done before the foreclosure deed is recorded. There is now a window of opportunity for homeowners to remain in their homes without the embarrassment of tacky foreclosure signs in the yard–=and the pain of moving. We’ve known about their leaseback offer:

Finally, in those cases where foreclosure proves unavoidable, Freddie Mac still works to keep families in their homes. We have suspended evictions triggered by foreclosures, offering qualified former owner-occupants and tenants leases so they can rent the properties on a month-to-month basis after foreclosure.

We now hear from good sources that Freddie Mac is also offering some homeowners the opportunity to refinance their homes after the foreclosure– before the foreclosure deed is recorded.

Kudos to Freddie Mac!

 

So many hands are trying to reach their way into the real estate transaction. I was not aware of Cartus' tactics until readilng this.

Via Northern Virginia Homes - FRANKLY REAL ESTATE Inc:

Cartus relocation company is a CROC! (that is an opinion, for more opinions Google Cartus sucks).

Actually many "relocation" companies that are supposed to help the employee are just fronts for making profit. And they have such a compelling pitch! How could an eligible buyer actually decide to bypass them? EASILY!

I'll explain exactly why you might want to bypass your relocation company AND how you can use PART of their system to your benefit and ditch the other part.

Why am I picking on Cartus? Cuz I was robbed. I got this email the other day:

Hi, I'm moving to Virginia with my job in a month and my fiance and I are a big Frank fan! {Name Omitted} recommended you to us. We love the website and reading/listening to your blog. And, we'd like to go with your realty firm when we purchase a place in Northern Arlington this summer. Fortunately for us, my company (XYZ) is willing to pay Realtor's fees and closing costs but I need to approve you as a realtor/realty before they will allow us to get started.

I added the emphasis.

1) Fortunately for us. Wow, the company is so gracious. They really care about their employees. Consider it a benefit like healthcare. They will pay Realtor fees and closing costs! (end sarcasm here)

Ok, first of all when you are buying, there are NO "Realtor fees" (sidenote: ha, I wonder if they pay for the bogus Realtor Admin fees which the Washington Post, link, just covered and cited my blog) per se because the Realtor fees are paid by the buyer. But it surely makes for a good BS pitch in the brochure. Why not also add: free keys! As for the "closing costs" I'll get to that shortly...

2) Approve you. Approve me for what? Make sure I'm good? Knowledgeable with people that are relocating? Maybe a quiz or a check for references? No. None of this happened.

I knew the "approve" the agent sounded fishy. I warned the buyer... I said "I bet they are up to something."

Finally Cartus contacts me. I get an email that effectively said: You are approved when you agree to give us 40% of your commission. (actually it said "registration entails a verbal agreement of a 40% referral fee.")

Are you F-ing kidding me? "Referral fee?" Did they refer business to me? Hell no. These buyers found me on their own. They were a personal reference from a friend that felt like they got great service. And Cartus demands 40% to be part of their program. What is this Robin Hood? Take from one to give a another? And keep a little for profit in the process?

So here are the details for their program, I am a fine print reader, so at the end I will try to parse this out for you.

CARTUS HOME PURCHASE CLOSING COSTS

There are numerous expenses associated with the purchase of your new home that vary by state and local custom. You will be reimbursed for buyer’s expenses customary in the new location; which should be discussed with your Cartus Relocation Consultant.

In all cases, only one set of lending fees and one-time closing fees will be reimbursed. Fees and charges most commonly recognized for reimbursement are:

Abstract or title search, Amortization fee, Application fee, Appraisal fee (1), Attorney fees (where required by state law), Certified copies, Credit report (1), Document preparation fee, Escrow fee, Guarantee fee, Inspections that are normal and customary for the area (termite, well/septic),

- Loan origination fee not to exceed 1% of the mortgage amount. If you do not contact Cartus prior to beginning the home purchase assistance program, you will not be eligible for the 1% loan origination fee.

Homeowners title policy for new construction only, Lender's Title Policy, Messenger service fees/express shipment fees, Notary fees, Recording fees, Settlement or closing fee, Survey, Tax service fee, Title examination, Underwriting fee

Isn't it fun making a really long list of fees that are paid? Even though many of them are next to nothing. I just pulled up a HUD1 for a buyer (note that fees can vary by closing company and frequently get renamed and shuffled around).

Here are a few of the next to nothing fees on the list that you get FREE!!: Notary Fee= $0, Messenger= $55, Tax service fee $0, Recording $65, Termite $35, Credit report $14, Title examination=$0.

The fees that have some real value: Survey= $265 Settlement fee=$195 Title Search=$175 Lender's title insurance=$1,800 (on a $650k VA home, reissue rate) NOT present in the list of closing costs: Owner's title insurance= $1350 (except for closing costs) Read more on Owner's Title

Conditional costs. Ie IF, a big IF, you use their "approved" Realtor. You get: Loan origination fee 1%. Lenders have a ton of names for these types of fees. Sometimes they are called "Rate buy down" points, or "Discount Fee." The short hand is just "points." Points aren't necessarily bad (make sure to subscribe to this blog for a full post on when to buy points). More often than not, if you put down 20% there are ZERO POINTS, ie $0 Loan Origination fees. So if you DO use the Cartus program, and an "approved" Realtor,  make sure you go out of your way to max out the full 1% point. (ie if the lender was going to charge you no points, they can make up the fee and buy down your rate, as in make your 5% rate 4.75% approximately)

But here is the fine print as I understand it...

BOTTOM LINE: You only have to use their approved Realtor IF you need that Loan origination fee. In other words, you can still pick your favorite Realtor and get all the other fees covered for free by Cartus. (I could be wrong, but that is how I understand their rules above).

Why in God's world would you give up the ability to get a "free" 1% loan origination fee?

Well that is a separate and lengthy discussion on rebating and discounting. Heck, there are several companies that will give you a 1.5% cash rebate. Heck a 1.5% cash rebate is MUCH better than no cash reimbursement for a 1% fee you might not have purchased normally.

WAYS TO MILK CARTUS

1) Have them pay ALL your fees except the 1%, and find your own Realtor that will give you a rebate.

2) Or if you find a Realtor that is willing to be "approved" by Cartus, tell them "hey buddy, you are willing to give 40% to Cartus right? And Cartus will just turn around and refund 33% (1% or 1/3rd of the 3% offered to buyer's agents) of the 40% in the form of a 1% loan rebate, why not just give me the 40% directly?! Cut out Cartus and get 1.2% refunded on your HUD1 vs 1% lender fee repayment and Cartus pocketing the rest.

3) Get your own un-approved agent, skip the loan fee reimbursement, yet accept all the other fees. So why am I telling you the secret path to getting the most cash out of the relocation company and system? Well maybe, just maybe you will then believe me that #3 above might be the best solution for you in the end.

Stop and think about for a second. Cartus demands 40% from a Realtor that you pick or one that they pick. So for the ones that they pick, what kind of Realtors will accept that? Oftentimes desperate ones. Perhaps those that are kinda struggling. You know, economy is tough right now. Weekend warrior Realtors that have nothing better to do? One that will pressure you into a house and hope to get you off their slate as fast as possible so they can make the next 60% deal from Cartus. Perhaps they have to cut down half the time they spend on you, to make it worth it.

So signing with Cartus with an "Approved" Realtor, is not much different than Rebating. I have no problem with the rebating business model. (note: you won't find many other non-Rebating Realtors talk about it openly).

Why do I talk about it? Well as I like to say "I use to rebate, but then I got good." Yep Read: Realtor Rebates. Free Money or Expensive Savings? and more on rebating.

In the end, know you do have a choice. You can get the best of both worlds. You can get Cartus to pay a good amount of your closing costs, get a loan with NO loan origination fees, and get to pick an agent that is working for YOU, and not for Cartus.

Oh, and remember I'm not too busy for you, so email me. See I'm Not Too Busy For You video #1 and Video #2

Make sure to subscribe and comment and debate. Nobody likes a stale blog!

Written by Frank Borges LL0SA

Broker FranklyRealty.com

Owner FranklyMLS.com

Croc image DrBartje Fish image Phillip

ps. My experience was on the BUYING side. Can somebody comment on the SELLING side of relocating? Do they really buy the house at the appraised price and eat any subsequent loss? Now that seems to have some value in this market.

 

I'll be there and am encouraging our fun agents to attend as well:=)

Via America's #1 Mortgage Broker/858-777-9751:

What a great opportunity to relax and network among other San Diego Real Estate Professionals at the D Street Bar & Grill, in Encinitas, on June 23, 2009. There will be no educational agenda for this meetup; just good ol' fashioned fun and networking.

We're trying to "rebuild" the fun and educational times of two summers ago so please invite a friend or two

Location

485 S Coast Highway 101
Encinitas, CA 92024
Change Place

How to find us
"You can always call me at 858-777-9751"

 

 

Meet-ups with Brian Brady are always the greatest!

Via America's #1 Mortgage Broker/858-777-9751:

The San Diego Real Estate Agent Meetup is Back

bkueJoin in on the fun, business networking, free appetizers, and raffle prizes.  This month, we'll join up with Coastal Networking, one of San Diego's best networking groups. Meet great contacts for either business or pleasure. This month, we'll be at Venice Ristorante in UTC from 5:30 to 7:30ish.

4365 Executive Dr.

San Diego, CA 92121

858-597-1188

RSVP HERE

 

 

The world of short sales and REO's is not without its predators in Realtor's clothing.

Some of you, for example, may have had a short sale listing or sale blown out of the water because of an inflated BPO (Broker's Price Opinion) designed to negatively sway a lender's/negotiator's decision regarding offer(s) on the table. Often, these inflated BPO's are generated to gain an unethical financial or business advantage--generally to obtain a listing agreement from lenders and loan servicers.

When this practice occurs, it harms not only potential buyers, but also owners whose homes end up going to foreclosure, the buyers' and sellers' agents, and the lenders who entrust BPO's and property valuations to agents with ulterior motives.

It is an unethical practice that can have disastrous results for many.

But those who inflate BPO valuations in California could end up losing their real estate licenses.

 

Effective January 1, 2009, agents who inflate BPO's might have to forfeit or suspend their real estate licenses, courtesy of the California Department of Real Estate, "if the licensee generates an inaccurate opinion of value for a short sale of residential real property to manipulate the lender to reject the short sale or to acquire a financial or business advantage, such as obtaining a listing agreement," per SB 1737.

It's about time....

 

 

 

 

Until recently, we all heard about the demise of the Mom and Pop real estate agencies, and how all the independents would be swallowed by Coldwell Banker, Prudential and all the other red, white and blue real estate boxes. 

We were told that ultimately, there would only be a few big firms left standing in the world of real estate brokerage.

It was all solid research, or so we were told.

But:

Murphy's Law of Research
Enough research will tend to support whatever theory.

My theory, based on anecdotal evidence, tends to support another view; namely, that the prairie fire that has swept the real estate market the last couple of years has spawned a proliferation of small and independent real estate companies. I am amazed at the number of new and unknown companies in our San Diego real estate market--and find that in certain communities, they are outlisting and outselling their behemoth brethren

What gives? I wondered just a couple of weeks ago.

Now I understand.

It was just last week that I heard Sotheby's International Realty was closing operations in San Diego--and that Prudential would be offered the chance to pick up the pieces.

Humph. Never did consider myself to be a piece--or a piece of anything.

Our little group decided to join that growing group of agents and brokers who operate without franchise ropes--and the rugs that tend to get pulled out from under when least expected.

Yesterday, we made it official with our MLS and Board of Realtors.  The hardest decision, though, was what to call ourselves.

In the end, we unanimously decided to let the tail wag the dog--and named the company after our website that has been around for years:

San Diego Previews

Taglines to follow.

And what is that saying about grass growing greener after a prairie fire?

 

 

 

 

 

Sacramento Realtor Gena Riede has some outstanding suggestions for preserving neighborhoods from the visual and health ravages of foreclsoed homes.

Via Sacramento Real Estate and Luxury Homes, Assoc. Real Estate Broker,Gena Riede:

Are there foreclosures in your neighborhood? Sacramento, CA has certainly had its fair share of real estate foreclosures. Some neighborhoods worse off than others. The steps to be a pro-active neighbor are not just for Sacramento neighborhoods but can be applied all over the country.

Have homeowners moved out on your street? Are there vacant homes on your street? Have renters moved out and no one has moved in?

Have you seen the remnants of a Foreclosure in your neighborhood? Are you sick of seeing burned-up grass in neighborhoods?

I recently saw what could be a solution to help sell a house where the banks have decided to turn off the water and no one is taking care of the lawn.

 

Here are some solutions neighbors can do to help preserve their own neighborhoods:

  1. Form a Neighborhood Watch through your local Police Department
  2. Become familiar with your neighbors and know who is living in the houses on your street
  3. Be aware when neighbors move out (many times a house stays vacant for months before a bank is aware that the owner has even moved out.
  4. When a house is vacant, check for trash and put it out for pick-up. Remember, no one is there to do it and trash brings rats into your neighborhood
  5. Park one of your cars in the driveway and rotate them to keep pilfers at bay
  6. Pull weeds and mow the lawn...take turns in your neighborhood and keep up your street
  7. Report broken windows etc to your County officials
  8. Report any suspicious cars or people on the property

It's time that neighbors took back their neighborhood and become pro-active. Don't try to use the water or figure out a way to turn on what has been shut off at a vacant house. As this may cause major flooding inside a winterized house.  If water is needed, use your own water.

A proactive approach is always less stressful and will lend itself to being a "good neighbor," while helping yourself in the process.

 
 
Rainmaker_large

Roberta Murphy - Carlsbad Real Estate North County San Diego Realtor

San Diego, CA

More about me…

San Diego Previews * Previews Luxury Real Estate

Office Phone: (877) 818-8197

Cell Phone: (760) 402-9101

Email Me


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