Homes For Sale in Irvine CA|Buying a House in Irvine CA|Foreclosures in Irvine CA|Short Sales in Irvine CA

Inside Real Estate
Build Your Wealth
(949) 929-6343
Follow My Blog
Di
Diane Gross, DRE Lic. #01217299
Realtor/Interior Designer
    Years of Experience: 18

    Re/Max Hall of Fame Award Recipient

Direct: (949) 929-6343



Company Info

Keller Williams Realty
Newport Estates. 2 San Joaquin Plaza Ste 150
Newport Beach, CA


Real Estate Tools

Schoolsschools

Communitiescommunities

Calculatorscalculators

Property Investment

Attn: Buyers and Sellers in Orange County, CA

Wednesday, January 18th, 2012

Is it too soon to evaluate the 2012 housing market?  How about the economy?  Signs are pointing to … up.  WAIT!  Don’t stop reading just because you don’t agree!  Did I mention?  After the holidays, keyword after, the movie lines were all the way across the parking lot.  The wait to be seated at CPK for dinner was 20 minutes and that was before 6 pm!

I believe there is a willingness for people to go back out and spend again.  They got a taste of it during the holidays and it didn’t stop afterward.  Yes, some businesses are laying off … many are hiring.  And, several are hiring in large numbers.  Don’t get me wrong.  It’s definitely still a mixed bag – 2 steps forward 1 step back. but that’s better than the other way around.

What does this have to do with the housing market?  Lots.  Unfortunately, for the consumer, what is one’s politics determines how one feels about the economy.  Also, it determines one’s outlook on life.

I’ve said it before and I’m sure I’ll say it again – you must be in the middle of it to know exactly what is going on.  This is the time of year in the normal ebbs and flows where real estate begins to pick up.  If my readers/clients insist on reading other people’s projections, make certain who you are listening to and that they are not just saying what you want to hear because they’re matching your own belief system.  In other words — know your source!  Is the writer really in the field and literally out there working with Buyer’s and Seller’s all over Orange County, California?   The fact is, what I’m saying won’t be the case everywhere; and this is why you need your Realtor; but, here goes:

This is what I’m already seeing this year:

  • Inventory is down.  Check!
  • Buyers are out there.  Check!
  • Interest rates are low.  Check!
  • Pricing is down.  Check!
  • Multiple offers abound.  Check!
  • People are tired of waiting.  Check!

Sounds to me like a comeback…

If you agree; and you’re ready to begin working toward either a sale or a purchase of Real Estate, visit my website by clicking here!

As always, I’d love your feedback; and, to receive notice of my future postings, sign up below.

 

Orange County, CA Housing Market

Tuesday, November 29th, 2011

I Want to Give You Helpful Information…

Why don’t you take me up on it?

I’ve just reviewed my Google Analytics Report to see what type of information I provide is reaching the majority of my readers.  There were two articles I wrote that received the most attention from you:

1)  SB458 Didn’t work the way it was intended, and

2) You can still buy a condo with only 5% down.

As a Realtor, I perceived all of my other topics to be extremely helpful information to both buyers and sellers alike; and, according to the comments received, they were found to be well written and good information.  However, for whatever reason, they are not causing you to spend a lot of time on my site when compared to those two topics above.  Does this indicate that the majority of the information I provide is not useful to you?

Next month, I complete 20 years of working as a Realtor.  Having been in the industry all that time, I should have the ability to communicate to you just about anything you would want to know about Real Estate.  And, what I don’t know, I can find out for you.  The time I spend writing my Blog is significant and it should count for something.  I’d certainly like to have an open dialogue about my topics, and want to hear from you about what information you would be most interested.

So that you can track how successful this request is in receiving my reader’s suggestions, or to get an answer to your own burning question(s), sign up below to receive an automatic notice of new Blog entries.

 

If you’re interested in allowing me to assist you with your Real Estate needs, don’t hesitate to contact me at 949-929-6343 or, click here to see how I work.

Orange County California Real Estate

Monday, November 21st, 2011

Are you as confused about the current housing market in Orange County, California as I am?  You should be because I’m confused and I should know more about what’s going on than you do!

Here’s a bit about why I’m confused.  I’m fairly up about what seems to be happening, or about to happen, but I’m always a bit more optimistic than most.  I come by this naturally because even though I’ve been in Real Estate since 1992, this is the first down market I’ve been involved in as a Realtor.  Because I know this about myself, I’m always checking myself by asking servers in restaurants I frequent how their business has been.  They’re still disappointed but I’m seeing the bars at say, Islands full instead of being the only one there.  I’m also aware that openings for employment positions are on the rise.  I try not to listen to national news because it’s usually not pertinent to our market and it’s always a downer, whether accurate or not.  I keep track of the inventory as reported in our weekly office meetings and I see inventory dropping; and, I listen to how other Realtors are conversing, and I make a determination by how busy they are and I am.  I’m hearing and seeing that loans are getting a bit easier to come by.  There are again a lot more options than just the 20% down slam dunk loan.  So, even the Banks are becoming a bit more aggresive.

Believe it or not, since May, I’ve averaged twice as many transactions per month as typical, but my income matches years’ passed.  That’s the cunundrum!  Business is up, interest is down, sales are up but prices are still dropping and interest remains among the lowest in history.  Typically, when this happens in our area, prices begin to jump up and they’re still falling … even with multiple offers.

I’ve also attempted to evaluate the type of buyers that are out there.  There are beginning to be a lot more first time buyers; but it’s difficult for them to compete with the investor/cash buyers, and it’s this type of buyer that is waiting to jump until the prices become low enough for them to see a property as an investment.  Also, we’ve gotten far enough removed from when many first started short-selling for those previous owners to be back in the market.  An even more interesting factor is I have more listings than usual demonstrating that Sellers are again willing to test the market.

At this point, given all of the above, I’ve got to say that the market in Orange County, CA is coming back…  What do you think?  Be sure to send your comments.  I’d love to hear from you. 

To contact me or to learn more about how I work, visit my website by clicking here.

To be notified of my next Blog entry, sign up below:

 

Were We Duped? !

Friday, September 30th, 2011

Hello All,

You probably noticed I haven’t written in a while.  That’s because my mind is in turmoil about the market and how the government used all of us.  There’s a reason that none of us can figure out the housing market… that being whether it’s getting better or not?

All of you need to watch an HBO movie special:  Too Big To Fail.  Besides being an excellent movie with wonderful actors, it’s very informative.  You may think you know all there is to know about what we’ve just lived through; but, trust me, you don’t.  After watching this movie, you’ll most certainly be better informed.

In the movie, Paulson (William Hurt) states that he has a torpedo in his pocket and he, and I think it was Bernanke (Paul Giamatte) or Geithner (Billy Crudup), said he was going to have to use it.  I believe that the torpedo was the period of time when the government was giving the buyers’ incentives of up to $8,000 when purchasing a new home.  You might remember that during that time, it appeared that the market was back!  The extra incentive stimulated the market, but as soon as the money ran out, so did the market; and, it hasn’t really come back since then.  I’m certain that Buyers were thinking the extra money would magically reappear once the government recognized that it was still needed and because it seemingly worked so well… but to no avail.

So, over an $8,000 gimme, the Buyers all went back into hibernation… hoping that the government would see the market die down again, and come back to the rescue.  Instead, the money went to the banks, litterally in hopes that the banks would lend that money to buyers supposedly making it easier to get loans, since, at the time; and still today, it was meant to loosen up the bank’s hold on their dollars.  But, unfortunately, also to no avail, as the government had not put the stipulation in writing that in order for the banks to get the money, they had to agree to lend it.

At the time that the torpedo was released, unbeknown to the general public and Realtors in particular, I, as well as many others, believed at the time that the market was already coming back.  SURPRISE!!  Finally, for me at least, last Thursday, (eight days ago) after Bernanke performed his latest trick, the housing market DID pick up for me.  The market actually felt like days gone by, and so far, it’s sticking.  Maybe that trick worked?  Or, maybe it’s just another torpedo ? !

Don’t forget to sign up below to be noticed by email when a new blog has been posted.

 

As always, I’m looking for your comments to this blog. To see more about how I work, be sure to look me up on my website by clicking here.

California’s SB458 Works Opposite of Intent

Thursday, July 28th, 2011

Ut Oh, California’s new SB458 bill that was passed a couple of weeks ago was intended to keep borrowers from having to repay their deficiencies on both their First and Second or Equity Line loans in the case of a short sale.  Unfortunately, it appears that it will work in the reverse.  Instead of protecting consumers from having to repay deficiencies after a short sale; it appears the banks will shut down negotiations for short sales altogether and opt for foreclosure instead.

The bill’s written perfectly for those that sold short already.  It’s no longer limited to purchase money loans; and it no longer excludes Second loans or Equity Lines of Credit.  SB458 specifies, in my interpretation (though you should discuss this with your attorney), for any lender on a property of 1-4 units whose loan is solely collateralized by the property is compensated by means of a short sale; they are no longer able to seek remedy for the deficiency afterward.

Just when some of the major banks like Bank of America; and now Wells Fargo, or any bank utilizing Equator as an organizational method, have finally hired (almost?) enough staff and stopped losing paperwork; and are actually accomplishing the completion of short sales in a more reasonable amount of time; this law unintentionally cut everyone off at the knees.

In Southern California, it’s customary for the First Loan to offer the Second an approximate $3,000 settlement for short sales; and, in most cases, it was accepted. I’m guessing this was because the Second/Equity Line of Credit holder could eventually pursue compensation through the courts with a deficiency judgment.

The author seemingly missed an unintended loophole.  A foreclosure still allows the lenders to seek a deficiency judgment.  What would be the incentive for either the First or the Second/Equity lender to choose a short sale any longer when they can still go ahead and foreclose and still have the right to pursue a deficiency judgement.  Unless this previously unnoticed omission in the Bill is quickly corrected to include protection for the consumer against a deficiency judgment in the case of a foreclosure, we may well have seen California’s last short sale.  The only way around this, to my knowledge, would be for these homeowners to take bankruptcy.  Then no one is the winner.  It leads to the consumer having ruined credit (worse than with a short sale); the Realtor’s are out of business unless you have an in with the banks to sell foreclosed properties (don’t even get me started on this); the banks expenses go up as a foreclosure is more expensive to close than a short sale; and my understanding is the banks are not allowed reimbursment of a deficiency judgment.

One can only imagine what this would do to the housing market, eh?  I’m working on a short sale right now.  After losing seven buyers all for different reasons, we finally have someone who will stay in the deal.  Unfortunately, the First and Second loans are not at the same bank.  Even though the First is offering $10,000 to the Second, the Second wants $27,000+.  I wonder where they think all that money’s coming from!  They already cut the Realtor’s commissions, they’re getting more from the First than usual and the Seller doesn’t have the money.  Unfortunately, these Seconds think the Buyers should pay it on top of the purchase price.  Does anyone out there think the home will appraise for those additional funds on top of the purchase price?  Even if the Second had incentive before the new law, they certainly don’t have any now.

Maybe all those folks that keep saying the banks have these stockpiles of foreclosed properties they’re waiting to release will be right after all…  YIKES!!

If you’d like to review SB458, click here.  To sign up to receive notice of future blogs, be sure to sign up below.

 

As always, I’d love to hear from you on how you feel about this topic and any other.  To see how I work or to hire me as your Realtor click here.

A Thank You and a Warning to Home Owners

Monday, July 11th, 2011

I cannot thank my readers enough for all the wonderful comments I’ve been receiving.  They do not go on deaf ears!  I’m thankful that I could be of help to you!!

To show my appreciation and just to simply inform:

Lately, I’ve been hearing from my clients that their loans that are recasting have not been done correctly.  If you have the type of loan that recasts, be sure to review your note, or have someone else that you trust review it, and make certain that your new payment has been calculated properly; and most importantly, that it is really time for your loan to recast!

One of my clients had a loan that was not to recast until year 10 or until they owed 125% of the original loan amount.  They currently owe about 107% of their loan amount and it is currently only the 5th year.  Imagine how surprised they were when their payment incurred a significant increase and they were lucky… they knew it wasn’t correct.  They still had to pay the new figure or it would have gone against their credit; and it took a LOT of effort talking to their Realtor, Financial Advisor, previous lender, and numerous calls to the bank to get it reversed.  They were finally successful; but it wasn’t pretty!

I simply DO NOT want some of you unsuspecting, wonderful people out there to have the same thing happen to you and have it go unnoticed.  You could be over paying on your loan by over a thousand dollars monthly.

As far as the current market is going in Irvine and Orange County, CA as a whole–it seems fairly status quo when compared to the last quarter of 2010.  I have noticed properties over a million dollars are creating more interest.  There have been lots of sales since March in the Northwood VI (Pointe) tract.  In general, for me, since May I’m having one of the busiest summers ever with both listings and buyers.

Again, in the Orange County, CA area; REO (foreclosed properties) listings are down.  The banks ARE becoming more cooperative on modification work outs and especially have become more streamlined when handling short sales.  I never thought you’d find me saying this; but, Thanks Bank of America and Wells Fargo for using Equator!

For those of you investors out there; take note!  What I’m noticing is the younger families/first time home buyers are leasing for shorter terms hoping to save enough to buy.  What’s better?  Do you take them because they have better FICO scores; or the sophisticated homeowner who’s FICO scores are destroyed, but will live in the home longer while repairing their credit?

I would love to hear from you as to what you’re seeing out there, how I can assist you with your current loan issues, or to discuss whether this is the right time for you to modify or sell your home or become landlords…

To sign up to receive notice of my next post be sure to fill out the form below:

 

Hopefully we can get a discussion going on what you believe the current housing market to be in Irvine and Orange County, CA.  To learn more about how I work click here.

Come On Buyers — Get Real

Friday, June 3rd, 2011

I’ve been giving a lot of thought about what is happening in Real Estate lately, both in Irvine, California and Orange County, California as a whole.  What I’ve seen is that the buyers are still out there … waiting.  Well, not really waiting; they’re looking, and then dropping out of the market.  I’m questioning why this is happening and I think I have the answer.

It’s both because of the media building false expectations; and, the Buyers’ expectations of what is available looking like a palace.  By this I mean the following:  The media has set up the Buyers to expect something greater than what there is.  Buyers are aware the prices have gone down, so they ‘think’ they can LOWER their purchase price and get something more than special.  When they get into the market and start looking they find out that this simply is not the case!  Even if you keep your expected purchase price at the same level it was before, you might be able to buy more square footage; but it doesn’t mean that the home will be perfect.  No home is perfect at any price.  This hasn’t changed with the downturn in the market.  It’s always been like this.

Many buyers think they can follow the pricing in the market down and get more.  I’m sorry to be the bearer of bad news; but this is illogical.

Buyers should, instead, be thrilled that they can get what they can for the price homes are priced at today!  Eventually, the cycle will begin again; and though we’ve lost money owning property today; tomorrow, by owning, we will gain it back.

Another mistake buyers make today is they believe the only time to buy is when the market is at its lowest.  You can read some of my earlier postings to see why this is simply not the case. 

Buyers… Even if you cannot buy exactly what you want today, it is worth getting into the market so you can buy what you really want later.  Get out there, look for property and be realistic.  As long as you hold onto your property beyond the downturn, you gain.  Plus, you get to be a homeowner.  Isn’t that what it’s really all about… having a roof over your head to call your own?  Why have we lost site of this?

I’d love to hear from you, your thoughts; and work with you when you’re ready to buy.  Find me by clicking here.

And, if you like the information I’ve provided be sure to sign up for email announcements of future blog entries below:

 

MANY SAY TO BUY NOW!

Friday, April 8th, 2011

I’ve received numerous publications from varying sources and ALL of them point to it being the time to buy now and they back up their opinions with facts I cannot dispute.  Let me post a few you might enjoy reading.  I’d love to have your feedback.

Check into the following:

Fortune Magazine:  http://public.remax.net/public-News/Pages/FortuneCoverStory.aspx

I’ve previously posted information from other lenders; and here’s some interesting information from yet another, John Farrell points out:

“FHA Announces April 18, 2011 Increases in Annual MIP

Supporting its publicly declared goal of accelerating the restoration of the required reserve levels of the Mutual Insurance Fund, the FHA announced yet another increase in the annual mortgage insurance premium.

In its Valentine’s Day mortgage letter (ML 11-10) FHA announced a 25 basis point (0.25%) increase in the annual mortgage insurance premium. The result for loans with case numbers assigned on or after April 14, 2011 and depending on the maturity and loan to value increases the annual premium to:

30 Year

•<= 95% LTV from 85bp to 110bp
•> 95% LTV from 90bp to 115bp

15 Year

•<= 90% LTV from ZERO to 25bp
•> 90% LTV 25bp to 50bp

To illustrate the change in payment in Mortgage insurance for your client:

Let’s take a purchase price of $700,000.00.
Your client finances 96.5% with 3.5% as down payment.
Loan amount would be $675,500.00.

Based upon the OLD MI of .90% the current MI payment per month would be $506.63.”

Now with the upcoming new MI factor of 1.10%, the new MI payment per month would be $619.21.  Which is a total increase per month of $116.00.

Here’s another Lender, Bruce Pham’s announcements on numerous new loan programs available:

“Below is a short summary of what we offer;

Conventional Full Docs, DU Refi Plus, HomePath by Fannie Mae, Jumbo, FHA, VA, VOE Only/Almost Stated, and Private Money.
 
Pre-Approve Your Clients with us, a direct lender.
 
VOE:    No Pay Check Stub, No W2, No Tax Returns, and N4506. Max LTV 80%. Minimum FICO 620. Okay for OO, NOO, 2nd Home, Purchase, Cash Out Refi, and  Flip.
 
FHA:    3.5% down payment with minimum FICO 640. Okay for BK discharged over 3 years, Repair Escrow Holdback, Self Employment, Non-Permanent Resident        Alien, Non-Occupant Co-Signer, Seller can Contribute Up To 6%, Subordination of Federal Tax Liens, and Streamline with our without Appraisal.
 
DU Refi Plus with or without Appraisal.
 
HomePath:   Low Down Payment 97% LTV on Full Doc, Flexible Mortgage Term, No Appraisal Required, No Mortgage Insurance. OK VOE Doc Type LTV up to 90%. Minimum FICO 660.”

I receive numerous of these types of emails daily and all offer something new.  The more loan options = more buyers making bids on the same homes you want = higher prices…

My opinion, it’s just around the corner, in fact, multiple offers are already rampant.  I know you don’t want to hear this, but it’s happening.  I have a client that made an offer on an REO in Huntington Beach, Orange County, CA that was not in good condition; another REO in the same tract had just entered escrow though it’s not yet closed, in excellent condition; and the listing agent of that home gave me an idea of where that one might close and that price seemed to be at the listing price of the REO my client was considering needing anywhere from $30-50,000 of repairs/improvements to bring it to the level of the one in escrow. Compared to that sell, my Buyer and I agreed on where he might make his offer.  The listing agent had just received another offer that he said was ‘a low offer,’ so I’m figuring probably somewhere around where we’re thinking to offer. By the time I reached the listing agent, they had countered back and forth a few times and they were close to a decision.  The listing agent gave me an idea where he wanted to be and it was only $5,000 under the list price and remember, that list price was just about at the sales price of the REO in escrow that was in excellent condition.  My Buyer was going to utilize the new 203 FHA home improvement loan, also opening the doors for many home buyers.

The listing agent gasped when I told him what the Buyer’s offer was and he said:  “Not in this market.”  Indicating a good market at this price point in Huntington Beach, Orange County, CA.  You, as the reader, might think this unusual; but it’s happening numerous times a day in many locations.  Last week, Irvine California homes SOLD jumped from a typical 28 to 50!  In one week!  All of this tells me it’s true, Buyer’s need to get their ducks in a row, and the sooner the better!!

I’d love to have your feedback on this article. To learn about how I work, go to my websites by clicking here and here. Please let me know which ones you enjoy more. You can also find me on Twitter. Don’t forget to sign up below for email notices of new blog entries.

 

Is this the End of Buying Homes as an Investment in Orange County, CA? – Part 1

Wednesday, December 29th, 2010

Was the Last Housing ‘bubble’ this Century’s ‘Gold Rush?’

(If you’ve read my previous blog entries, I’m sure you didn’t visit my blog today expecting a history lesson and I will try to tie it up as quickly as possible; but if you’ll read on, you’ll see why I’ve chosen this subject in an attempt to draw some conclusions to answer this question.) 

Having been born in the middle of the 20th century, I believe I have some perspective about major events that might resurface, but with slight adjustments, in the 21st century.  It might sound silly but with the assistance of history books and news reports, I believe I was just the right age to remember what resulted from significant events i.e., all the wars, The Great Depression and then the Gold Rush in the mid-19th century.  Though I obviously wasn’t there to experience these events personally, my parents, grandparents and great-grandparents were and I was fortunate enough to have enough years with my grandparents to hear a bit about their westerly migration.

Basically, since the beginning of the 21st century I have played mental games with events and tied them to similar events that occurred early in the 20th century.  I noticed that there are parallel events, but the time span of those events in this century appear to run their course faster.  So, whereas the gold rush lasted from 1848 to 1859 or 1864 depending on the source; Wiki Answers on Answers.com says:  “CA became a state on Sept. 9, 1850 and it was pretty well over by then. The rush only lasted a couple of years, but people kept coming.”  I find there’s as many reasons as to when and why the gold rush ended as there are reasons for the housing bubble bursting.

Rather than referring to the housing market as a ‘bubble bursting’ I prefer to refer to it as “trends” because it appears to happen over and over again.  In the past, Orange County’s housing trends appeared to last seven years up and seven years down; until this last one when the market trended upward 10 years; and if we are already done with the down-trend, it will be have been only four years; as before June, 2010, prices were already trending back upward.  Can we use our previous experience as a method to determine if the market will go down again (other than what’s typical for any one part of the year)?

Please return for Part 2 of “Is this the End of Buying Homes as an Investment in Orange County, CA?”

I’d love to have you review the rest of my blog and sign up to receive notification as to the publication of my answer to this burning question:  “Is this the end of Buying Homes as an Investment in Orange County, CA?” by signing up below.

 

I’d also love to have your feedback on this and other of my6 blog entries.  If you’re in the housing market, don’t hesitate to follow this link to see how I work and contact me.

- Copyright © 2010 Inside Real Estate, LLC

Inside Real Estate does not endorse the agents on this site, and does not guarantee the content submitted by the site's members. Blog and page entries, content, and other information contributed by agents that are members of the site are accountable to the particular agent. Inside Real Estate and Omnia Alliance LLC take no accountability for the content contributed by members to the site.