6340 Smith Avenue, Mira Loma - The Newest Mira Loma Investor Special!

Let's put the entire town to work!  Hope you have a great network of friends & family so you can utilize your friends & family discounts!!  Looking for your next Mira Loma investment flip property?  This lovely little gem is now available!

Do you own a water heater company?  Good, you'll be able to utilize your employee discount!

How about a garage door company?  Good, the single-car garage doesn't seem to be there anymore, does it?

Are you the owner of a roofing company?  Good for you too, as there's definitely room for you to show off your handy work.

Do you own a cabinet making business?  Good, sign yourself up for a new set of cabinets as this kitchen is missing most of them!

Is plumbing your trade?  Good, you have a chance too as we don't have all the fixtures in this bathroom!

Is painting your trade?  Yup, you have a chance too as the prior owners 'forgot' to paint their add-on.

Do you know flooring?  Good as this property has 'no good' flooring waiting for your creative flair.

Did I miss your favorite trade or discount?!?  Don't be shy - speak up - I might be able to help you utilize more discounts.  Heck, at this pace we're bound to single-handedly turn-around the Mira Loma labor economy!

At $140,000 this is actually a pretty good deal as we have almost a full acre of flat usable land that conveys with this property.  The property will convey without warranty, expressed or implied, and buyers are advised to get full inspections.  This property is being sold subject to 24 CFR 206.125 which is essentially a reverse mortage product and as such no repairs, home warranties or seller assistance contributions will be entertained.

For more information on this or other Mira Loma properties, please contact Michael J. O'Connor at 951-898-8912 (office) or 951-847-4883 (cell) or by email to RealtorOConnor@aol.com.

I took a personal challenge to reduce my footprint on the planet in 2008 when I realized that I was spending thousands of dollars on printing costs for my small Eastvale based real-estate brokerage.  Along the way, I've implemented electronic faxes, electronic signatures, GPS techology for mileage tracking, online transaction management & storage to eliminate paper files and receipt scanning to tame the chore of expense reporting.  I was even featured in a short blurb on REALTOR magazine in spring 2010 about becoming paperless which was a thrill for me.  But alas, the link no longer works and I didn't keep a HARDCOPY of the article (!!) but read my blog about it as I summarized the main points of what was in the article so all is not lost!  :-)

There are huge financial payoffs in the quest to go paperless.  In addition to reaching a more zen-like stake in my office without having huge piles of paper, I am seeing an improvement on the bottom line to boot.  In 2008 I spent more than $5,000 on 'printing supplies' which improved to just over $3,000 in 2009.  I'm just about finished with my year-end accounting for 2010 and I'm finding that the total is now less than $1,500.  While it's true that I was sidelined for a little while late in 2010, I still doubled my commissions from 2008 to 2009 and was flat in 2010 so I was still pretty busy so my cost reduction is not related to sales volume reduction but rather better business practise.

In looking at my desk-office space currently, there's still room to reduce clutter as well as improve the bottom line.  The biggest problem I'm having is client management and quite frankly, this has been a problem for a while.  In addition, I have a ton of business cards from people I've met both as potential clients and as business connections.  To solve this I'm going to be working on the following technology tools to improve my organization and provide better customer service:

1. Top Producer - It's time.  I am getting too many good leads and too many contacts to try to manage it all within Outlook.  I have a stack of little notes on random pieces of paper like litter at the bottom of my computer screen.  They must go into a management system, period.

2. Business Card Scanner - I've used Neat Receipts for years for receipt management and it's a FANTASTIC product.  It's time to enter the business cards into the business card module - and very important here so pay attention - BACK THEM UP.  I had already tamed business cards in the past but lost the whole thing.....

3. Online Listing Presentations - I'm thinking that a 3x5 index card is the goal for my leave-behinds for listing presentations.  This year is the year in which I'm going to really work on getting my listing presentation online and customized for the client.  All I'll need to do is leave them a 3x5 with the url to their presentation.

I'm not 100% paperless (nor do I ever expect to be) but I'm probably closer than most of my peers.  But even I can improve and reduce even more!

 This post is written as a submission to the ActiveRain & Kodak Paper-less Challenge contest.  I have the chance to win the high speed KODAK SCANMATE i1120 Scanner, great for helping real estate professionals reduce their stacks of paper by scanning contracts, photos and business cards in seconds.

Typical Escrow Settlement Costs in Riverside County

I'm often asked by home sellers "How Much Are the Closing Costs?"  Here are some of the typical costs that I have seen that are paid by home sellers in Riverside County.

Mortgage Payoff:  Usually this is the largest expense to be paid from escrow proceeds.  The amount of money to be paid is determined by the existing lender.  In addition to the principal balance (the overall amount owed), the bank will charge for outstanding interest and possibly ‘demand fees' and other similar fees.  Usually these fees are relatively small (under $100).  Many sellers will underestimate their mortgage payoff because mortgage payments of interest are made ‘in arrears' or after they've been incurred.  So a payment made on April 1^st is actually paying for the interest expense on the loan from March 1^st through the end of March.  If the sale is scheduled to close on April 10^th, the bank will likely ask for about 44 days of interest (31 days in March, 10 days of April plus 3 days to allow for money to arrive from escrow).  If the funds arrive early, the bank will make a refund of overpayment back to the seller sometime after the sale.

Prepayment Penalty:  This is an item included in the mortgage payoff but worthy of special notation as the penalty can add significantly to the cost of the sale.  The amount is usually a percentage of the outstanding mortgage balance and may be in effect for quite a few years after the mortgage is put in place.  Make sure you understand your penalty dates and amounts if you have a mortgage that includes early payment penalties!

Broker Commissions:  The commission that is paid to the brokers will typically be the largest expense (after mortgage payoff) related to the sale.  This is often a percentage of the total sales price.  When you list your home you will be paying the listing brokerage and you will authorize a portion to be paid to any other brokers who may ‘participate' and represent a buyer in the sale.  This is referred to as the commission split.  Real estate commissions are fully negotiable and must be in writing to be enforced.

Buyer Closing Costs:  Often an offer to purchase a property will include a request for the seller to pay either a fixed amount or a percentage of the sales price to be credited to the buyer for the buyer's closing costs.  This is especially common in transactions involving 1^st time homebuyers who are often working with limited funds.

Property Tax Pro-Rations:  Property taxes are only paid ‘current' on two dates, June 30 and December 31^st.  Sales on any other dates will involve either a credit or debit from or to the seller.  If you have already made the property tax payment due in the current ½ year (ie. Selling between July and December and you've made the payment due in December OR selling from January to June and you've made the payment due in April) then you will receive a credit from the buyer through escrow.  If you have NOT made payment yet, then you will be responsible for a pro-rated portion of the taxes due through the date of closing.  And of course if you are in tax default, all old outstanding bills will need to be brought current including penalties, interest and a reinstatement fee.

HOA Fees:  Most purchase contracts will ask the seller to pay for HOA documentary costs and HOA transfer fees.  These costs are usually relatively small but it's important to remember that the HOA will be charging for all those HOA docs as well as setting up the new owner account.  It's not unusual to see these costs in the hundreds of dollars.

Pest Control: Most purchase offers will include a request to sell the home free-and-clear of termites and similar infestations.  Many termite inspection companies will perform complimentary inspections and some will charge a nominal fee ($75-$85) with credit for the inspection applied against any work that may be needed.  You do not need to be in a sale situation to have a termite report completed so if you are worried about the cost of repairs you can do an inspection prior to listing the home for sale.  Remember though that termite reports are public records that are filed by the termite company with the State.  The report will be on file for a two-year period.

Home Warranty: A home warranty policy allows the buyer of a home to have repairs made for a fixed fee (typically $55 to $65) and will cover many of the major components of the home.  These policies cost anywhere from $350 to $700 depending on options selected and most sale contracts will ask that the seller pay these expenses.

Septic Certification:  If you're not on a sewer line, the buyer is almost guaranteed to request a septic certification.  They don't want your leftovers left at the property.  Clean-outs and certifications can run in the $700 to $1000 range.

Natural Hazards Report:  As the home seller, you are obligated to disclose hazards of a general nature related to a property.  There are several companies in the marketplace which will provide this service and the cost is usually around $90 and is paid by the seller.

Smoke Detector Installation:  If you home is older, you may not have smoke detectors installed on the property.  You will be required to have smoke detectors in place prior to the sale of the property.  These can run anywhere from $8 and up depending on brand and whether they are hard-wired or battery.  You are not required to provide hard-wired so if you don't already have them in place, just provide the inexpensive battery operated detectors.  There should be one inside each bedroom and ideally at least one outside the bedrooms within 10 feet of the bedroom door.

Water Heater Strapping:  All water heaters need to be strapped to prevent tipping over in the event of earthquake.  The straps are relatively inexpensive and a handyman can install for a relatively modest cost (probably $100 or less).

Carbon Monoxide Detector Installation:  California codes are changing and CO detectors are required effective January 1, 2011.  They are similar to smoke detectors in appearance but run closer to $40 in cost and only one unit will be required.

Escrow Fees:  The escrow office is the coordinator of the paperwork for both sides of the sale.  The costs of escrow are usually split 50/50 between buyer and seller.  Some escrow companies charge a flat fee, others have a minimum fee and then charge a fee per $1000 of sale price.  The costs can vary quite a bit and often the listing agent is the person making the recommendation for who will handle escrow.  Make sure to understand if there is a related party relationship between the listing broker and the escrow company (i.e. both companies are owned by the same company or individuals) as this may lead to higher (or sometimes lower) costs.  Reasonable escrow fees on a sale of $300,000 would be something less than $1000.

Title Insurance -Owner's Policy:  The seller of property is generally asked to pay for an owner's title policy which insures the buyer that the seller is the true owner.  The title company will be responsible for any ownership claims that may be filed after the sale and title will be responsible to ‘make-it-right' if there were any problems with the ownership transfer.  Often title company costs are proportionate to the sale price.  Reasonable title fees on a sale of $300,000 would be something near $1000.

County Transfer Tax:  The county charges a transfer tax on all property sales.  The amount is $1.10 per $1,000 of transfer value.  So home selling for $300,000 will have $330 of county transfer tax.  If your property is in the City of Riverside, the transfer tax is $2.20 per $1,000 of transfer value.

Private Transfer Tax:  In some areas, there are private transfer taxes which are similar to the county transfer tax but paid to private entities.  These situations are rare.

Notary Fee on Grant Deed:  As the seller, you typically have only one document to notarize and the fee should be about $10.

Messenger & Similar Fees:  Escrow often will need to send documents back and forth to you and to your agent.  Escrow will probably charge a flat fee of about $50 to cover their costs.

Escrowed Impound Refund:  If you pay impounded property taxes and insurance (payments with your mortgage payment) you are likely to have a refund of the balance in this account after you close escrow.

Insurance Refund:  Regardless of whether you impound your insurance payments, make sure to contact your insurance company as they should return a pro-ration of the annual insurance premiums that you've made.

Water Company Bill:  If your property includes stock in a water company, you may have transfer fees and water pro-rations to attend to as part of the sale.

Document Fees:  Other miscellaneous (sometimes called 'junk' fees) may apply to the sale such as grant deed preparation, etc. and generally should run $100 or less.

So "How Much Are the Closing Costs?" is a difficult question to answer precisely.  Much will depend on your individual situation but most sellers will pay somewhere between 7% and 8% of the sale price towards closing costs and easily upwards of 10% if there are special situations at play such as buyer closing costs, prepayment penalties or significant termite damage.

If you are a Riverside County homeowner and you are thinking of selling your home, please contact me for a free evaluation of your home value as well as an analysis of your potential sale proceeds.  I can be reached at DiamondRidgeReal@aol.com or by phone at 951-898-8912 (office).

How Soon Before the Bank Takes My House?

I'm often asked this question by homeowners who are facing difficulty making mortgage payments.  Of course, there is no 'one' answer that fits all situations however these are the major milestones if you are having trouble making your payments on your Inland Empire home.  My area of expertise is as a real estate professional, not a legal or tax expert, and my comments should not be construed as legal or tax advise.  I encourage all homeowners facing a mortgage payment problem to seek legal and tax advise from qualified individuals.

1. Payment Default Date - The first day after a mortgage payment is due but not paid, you are technically in payment default.  Usually your payment is due on the first of each month and the payment includes the interest accrued on the mortgage during the past month as well as a principal payment and possibly an escrow amount to pay for property taxes and insurance.  Many mortgages provide for a 15-day grace period so that you may still make payment during this time window and not be reported as late.  It is not uncommon for the bank to start calling you during this time frame to start asking about the overdue payment.

2. Payment Default Period - Once you are officially 'late'. the bank is likely to start a series of letters, phone calls and sometimes even property visits in an attempt to establish communication with you to determine what steps you are taking to 'cure' or fix the payment problem.  It is likely that the bank will be open to a loan modification or a loan forebearance to get you back on track with the payments.  The requests are likely to be more and more 'forceful' as the delinquency gets further and further behind.  But know your rights and what they are allowed and not allowed to do when contacting you in an attempt to collect the debt.

3. Notice of Default - At some point, the bank will decide that they need to protect their legal rights and will file a Notice of Default (NOD) at the County Recorder's Office.  Technically the bank could file this notice as soon as one day after delinquency however most banks don't file an NOD until the payments are 90 (and often, many more) days past due.  A Notice of Default is a matter of public record and at this point you will really need to make some decisions about what to do if you haven't already.  There are generally five things to consider when facing a mortgage payment problem and you haven't consulted with legal and tax professionals, the NOD should be your wake-up call and reason to consult with these professionals.  If you receive an NOD while already working on a loan modification or a short-sale, you should not necessarily be alarmed by the filing as the bank is preserving their rights.  They are probably seriously considering the loan modification or short-sale.  But the clock doesn't 'stop' just because these avenues are being evaluated.

4. Notice of Trustee Sale - If you haven't been able to 'cure' the default by either making full payments on the overdue amounts or through other means such as a loan modification or short-sale, the next step the bank will take is to file a Notice of Trustee Sale (NTS).  In California this cannot be filed until more than three months have passed since the date the NOD was filed.  Like the NOD, the Notice of Trustee Sale is a public notice but before the bank can foreclose they need to publish the notice in a newspaper as well.  If you are working on a short-sale, you should immediately let your real estate broker know about the NTS filing so that communications can be opened in an attempt to postpone the sale to allow the short-sale to be completed.

5. Trustee Sale Date - The Notice of Trustee Sale will state the date that the bank will 'sell' the property at public auction if you haven't cured the default.  If you are working on a loan modification or a short-sale it is not uncommon for the trustee sale to be postponed to a future date.  The majority are postponed for 30 days but sometimes the bank will only postpone for 1 day, 3 days, 7 days, 10 day or 14 days.  Many though will end up postponing for 45 days or even 60 days.  Once the new date is scheduled, the bank has the option of postponing again and again.  It is not unheard of for the bank to postpone a trustee sale for as long as a year.

6. Trustee Sale Held - If the default isn't cured, the bank may end up holding the auction.  The published bid is the amount that the bank states is owed on the mortgage including outstanding interest and legal fees.  Some banks will discount the opening bid on the amount owed to entice a 3rd party to pay cash on-the-spot at the public auction.  In these cases, the 3rd party becomes the new owner of the property.  If there are no 3rd parties interested in the property, the foreclosing bank becomes the new owner.

How Soon Before the Bank Takes My House?  In Riverside County and the Inland Empire area of Southern California, it is a minimum of about 4 months from the time the first mortgage payment is missed (if the lender immediately files the NOD).  It is common for at least seven months from the first missed payment (if the lender files the NOD 90+ days from the first missed payment).  Many homeowners will remain in their homes for more than a year before the bank takes the house (with delays of NOD filings and postponements of the trustee sale).

As a real estate professional, I can help homeowners who are in financial difficulty and want to pursue a short-sale option.  As a Certified Distressed Property Expert (CDPE), I am in touch with other professionals throughout the country to stay on top of the most current practices and policies of the major banks. 

If you own a home in Riverside County or nearby Inland Empire areas of southern California and are in a financially distressed situation, please contact me at 951-898-8912 to discuss your situation.  No obligation, no cost, just an honest assessment of how I might be able to help!

Things To Consider When Facing Mortgage Difficulty

If you are a Riverside County homeowner in a distressed financial situation, you should review the five main options that are available to you to resolve your mortgage difficulty.  You should review these options with your tax and legal representatives as there are potentially serious consequences that may apply to your personal situation.  A real estate professional can only advise clients on real estate matters, not matters of taxation or law.

1. A Loan Modification is often a homeowner's best option, especially if the reason for the distressed financial situation was due to a temporary income loss or if the loan payments have reset due to expiration of a trial interest rate period.  Homeowners should explore options directly with their lender - many are much more willing to help than they were in the past.  Be prepared to provide a significant amount of paperwork including paycheck stubs, bank statements and a hardship letter.  Loan modification companies are available to help but be aware that there are many scams out there.  If you need assistance in getting things done, often a non-profit organization such as NACA may be a good alternative.

2. A Deed in Lieu of Foreclosure is basically an agreement to hand-over the property to the bank without the bank needing to go through the entire foreclosure process.  In our current mortgage crisis, this option has not been pursued often as it does not protect the mortgage holder from any other liens that may be on the property.  It may be a practical option if the home value and the amount owed are almost the same or if the value of the home is slightly greater than the amount owed.

3. A Bankruptcy will almost certainly result in a homeowner being able to stay in the home for an additional period of time and may be the best option if there are other significant debts.  However unless there are fundamental changes to the mortgage brought about in the bankruptcy such as a stripping away of a junior lien, the homeowner may find the bankruptcy to only be of temporary relief. 

4. A Short-Sale is a sale process where the homeowner will attempt to sell their home and negotiate a 'short-payment' of the existing mortgage on the property.  Often a homeowner's best option, after exploring a loan modification, is to pursue a short-sale. 

5. A Foreclosure may in some situations be the homeowner's best option, especially if there are protections against a deficiency judgement.  Sometimes homeowners don't seriously consider this option until after working on a short-sale and then finding out that the mortgage holder or a mortgage insurance company wants a promissory note or cash-payment as part of the short-sale process.  A foreclosure will generally hurt a homeowner's credit score harder and for a longer period of time than other options.

As a real estate professional, I can help homeowners who are in financial difficulty and want to pursue a short-sale option.  As a Certified Distressed Property Expert (CDPE), I am in touch with other professionals throughout the country to stay on top of the most current practices and policies of the major banks. 

If you own a home in Riverside County or nearby areas of southern California and are in a financially distressed situation, please contact me at 951-898-8912 to discuss your situation.  No obligation, no cost, just an honest assessment of how I might be able to help!

I am pleased to announce the pre-marketing phase of this exquisite Chino Hills Executive Home which will be available for sale on July 12, 2010. 

This four bedroom, three bath home features upgrades throughout on a premium end-of-cul-de-sac location.   With dramatic soaring cathedral ceilings, the formal living and dining rooms greet your guests.  Glide over the travertine walkway to the gleaming wet bar at the foot of the staircase.  A warm inviting family room with fireplace and built-in entertainment center make for a wonderful destination after a long day away.  The open and bright kitchen features granite counters and built-in stainless steel and black appliances.  Enjoy the view of the rolling hills and city lights from the kitchen's dining nook or move outside to the adjoining patio for al fresco dining.  A lower level bedroom makes a great den or a wonderful guest room with direct access to the full bath.

At the top of the staircase, the romantic master bedroom features a fireplace and window seat overlooking the rear of the property as well as dual walk-in closets.  Pamper yourself in the granite & travertine tiled master bath featuring a soaking tub, and a glass-blocked grand shower.  The two additional upper-level bedrooms are generously sized and convenient to the central hall bath.

Enjoy the city lights from the comfort of the backyard spa or have fun playing on the ample lawns throughout the backyard. But be sure to hurry as this impeccable Chino Hills Executive Home is sure to be snatched up quickly!

Intrigued and want to see more?  Please enjoy this virtual tour of this fine Chino Hills home:

To schedule a showing for July 12, 2010 (or later), please contact Diamond Ridge Realty at 951-898-8912 or by email to DiamondRidgeReal@aol.com

Thinking of selling your home in Chino Hills or surrounding cities?  

There are hundreds of brokers that service the Inland Empire and the Chino Hills, CA area. There are, however, vast differences in the skill level, services offered, and marketing efforts of the REALTORS that service cities in the Inland Empire and Chino Hills, CA. 

Make sure that you are getting the top-of-the-line service that you deserve!  Be sure to contact Diamond Ridge Realty, your REALTOR of choice, a diamond cut above the rest!