It’s Fall, Y’All !
October 17, 2008 by Christe Roknich
One of my closest friends moved to Texas a few years back. And my sister, Rose, moved there some years ago with her family. So thanks to them, I’ve begun to speak with a drawl, y’all.
Okay, not so much! But fall, make that autumn, is upon us, and with it brings cooler temperatures, lots of holiday happenings and a national election.
The real estate market has just entered a new season as well. In the past few days, we have begun to hear anecdotal evidence of improvement in our local real estate market. First time buyers are beginning to take advantage of prices far lower than any time in recent years.
Are we at the bottom? Sorry, I broke my crystal ball when I began my real estate career. But we’re a lot closer to the bottom than the top. Now might be the right time for you. Give us a call, y’all!
Golf Tournament & Casino Night
Gasoline is pricey – why drive to Vegas when Casino Night is right here? JSerra Catholic High School, in San Juan Capistrano, is holding two fund-raisers to benefit its sports teams. The Golf Tournament is scheduled for November 7th at Arroyo Trabuco in Mission Viejo – a beautiful course. And the gift bags are incredible! The Casino Night is the following evening, November 8th, and dinner is included – tickets are only $50 each including gambling. Call me at (949) 240-5892 for info, or send us an email.
“Love where you live…live where you love!
It all begins at home!”
The Financial Capital of the World
October 10, 2008 by Christe Roknich
That title used to belong to New York City. But now it appears as though all eyes are on Washington, D.C.
Officials, elected and otherwise, of our Federal Reserve Bank, and of our Federal Government, are convening daily to devise strategies to bail out our ailing financial institutions.
It’s amazing to see the list of companies in trouble or shut down. Lehman Brothers, Merrill Lynch, AIG, Countrywide, and Washington Mutual are among the largest and best known companies that have ceased to exist in their previous form, thanks to the crushing effect of bank foreclosures nationwide, and to the high-risk financial shenanigans played by these “titans” of Wall Street.
How does all this affect your home? Your neighborhood has likely experienced a short sale or two recently. And no, No community is an island – prices have fallen everywhere from the peak of the market. And foreclosures are a large and growing factor everywhere across the country.
It’s a buyer’s market, for sure. But if you need to sell your home, or another property, call us at (949) 240-5892, or contact us via email. We’ve been through market cycles like this one before. We know how to maximize your equity through proven strategies designed for today’s challenging real estate market.
“Love where you live…live where you love!
It all begins at home!”
It’s All About the Banks
October 3, 2008 by Christe Roknich
So much has changed…and so quickly. Remember when banks were in the business of receiving deposits from savers and issuing loans to borrowers? It appears as though banks are engaged in an entirely different line of work these days.
Our banks have become home owners! As you know, our local Orange County real estate market is driven by bank foreclosures. But did you know that the other major factor driving down real estate prices right now is real estate “short sales?”
So what on earth is a short sale? A short sale, or “short payoff”, is a negotiated settlement between lender and borrower that allows a property to sell without the normal requirement for the mortgage loan(s) to be paid in full. If you are having trouble making your mortgage payments, a short sale may be a viable alternative to foreclosure.
Here’s a practical example: a buyer purchases a home somewhere in Orange County back in late 2005 for $1 million. The buyer also takes advantage of the lenient and generous loan terms available, and borrows $950,000 with only a $50,000 downpayment. Let’s now assume that the price of the home has corrected 25%, and that the home is now worth $750,000. But in order to sell this home, the owner must now contribute more than $200,000 in cash to bridge the difference between what the home is worth and what is owed to the bank.
Such a large out-of-pocket expense is not so easy a task for most people, especially in a slowing business environment. And unfortunately, many homeowners who can afford to pay off their loan choose not to do so, and let their properties go to foreclosure. That’s where the negotiated short payoff fits into the picture. Rather than foreclosure, the property is sold through conventional means subject to the lender accepting less than the full amount owed. Why would a lender cooperate? Based upon current market values, upon genuine hardship of the borrower, and the inevitability of foreclosure, the bank will often cooperate with a borrower and accept a short payoff. By doing so, the bank avoids becoming a home owner. We have always asserted that banks lose more money when they foreclose and resell a home, than when they accept a reasonable short sale. The seller avoids a foreclosure, the neighborhood avoids yet another “fire sale”, and perhaps, the market rebounds faster without so many bank foreclosures.
We have a great deal of experience with negotiation of short sales, dating back to the Orange County real estate market correction of the early ‘90’s. Call us, or contact us via email, for a confidential consultation to determine if a short sale is the best strategy for your individual situation.