Bank Owned Listing Update - 2 Closed Sales

Here's a little status update on our Bank Owned Listings:

2834 W Bridgeport Ave, Anaheim - In Escrow, accepting backup offers

215 Knox Street B, Costa Mesa -

• Price reduced $50,000 - offers have been received, so there's no time to waste if you're interested in this one

11 Villa Valtelena, Lake Elsinore - Sold for all cash, 15% above asking price

21331 Bristlecone, Mission Viejo - Sold for full price



If you'd like more info on any of these, or any of our other listings, just contact me or Leslie directly!

Watch Out for Loan Mod Sharks

We all know there are lots of people struggling to keep their homes today. Unemployment, layoffs, bailouts, foreclosures, and loan modifications are probably some of the most common words in the news, and have been for a while.

Shouldn't You Get Professional Help?

For some people who have certain types of loans a loan modification is a real option, but large numbers of people in distress tends to bring out the scammers. Who can you trust to help in your loan modification negotiation? Normally, the safest answer would be to consult with an attorney.

Pros Gone Bad

That's what makes today's announcement by the State Bar of California so disturbing. They've publicly identified 16 attorneys who are under investigation for misconduct related to loan modifications. The charges against them include taking a fee for services and then failing to perform those services - or even further communicate with the client!

The Office of Chief Trial Counsel experienced a 58% increase in active investigations compared to 2008, and 25% of them involve loan modification.

What to Watch Out For

If you or someone you know is having trouble making mortgage payments loan modificaiton might be a good option - but just be sure you are working with someone you know you can trust. Get references, and check them! In addition, the State Bar has identified a list of "red flag" circumstances that could be a sign something isn't right:

• Advertisements of the office do not expressly identify by name the attorney who is responsible for the business.
• Office staff will not readily identify by name the attorney responsible for oversight of the business.
• The attorney in charge of the office is too busy or not willing to meet personally with prospective clients.
• The firm advises a consumer to stop paying the existing mortgage.
• The business, through its advertisements or claims of its representatives, makes claims that sound too good to be true, such as claims of a 90 or 100 percent rate of success in obtaining loan modifications, or claims that a reduction in the mortgage principal is likely to be achieved.
• The business demands payment of a large fee, even before obtaining a prospective client’s basic income and expense information, and information about the existing mortgage and present home value.
• The attorney responsible for the business is not licensed to practice law in the state where the consumer resides.

Are There Other Options?

One thing to keep in mind is that a loan mod may not even solve the matter for a home owner in distress. Check out this list of all the various options, as well as a FAQ on Short Sales, and remember to work with someone you know has a track record of success!

Bank Owned Home Update

Here's a little status update on our Bank Owned Listings:

New Pre-Listing Flash!

2834 W Bridgeport Ave, Anaheim

215 Knox Street B, Costa Mesa - Open House this Saturday 11-4

11 Villa Valtelena, Lake Elsinore - Multiple offers received, pending investor approval

21331 Bristlecone, Mission Viejo - In Escrow, accepting Backup Offers

If you'd like more info on any of these, or any of our other listings, just contact me or Leslie directly!



Late breaking update: we now have fully ratified contracts on 11 Villa Valtelena and will open escrow tomorrow.

Insider Info on Bank Owned Homes

Interested in finding out about Bank Owned properties before they hit the market?

Once a home goes through the foreclosure process it takes a little time for the bank to get the property ready for market. Wouldn't it be nice to be in the loop and have a jump on other potential buyers and investors?

Check these out:

• Newport Heights area of Costa Mesa

• Single Family Home in Mission Viejo

• Single Family Home with Views of Canyon Lake

Check back regularly - we'll provide updates as these and other properties are prepared for the day they hit the MLS.

Want to be sure to always have the inside scoop on these kinds of deals? Check out Leslie's new video - she'll make you her Top Priority!

Bank Owned Home - Pre-Market Scoop

Interested in info on Bank Owned properties before they hit the market? I've created a new blog to keep you up to date on one of Leslie's newest assignments from IndyMac / One West Bank.

Here's some video of my first walk through the property - stay tuned for more!

Where Have All the REOs Gone?

Check out this chart:

	Jan 09	May 09	June 09	Active
All OC	1,681	2,409	603	9,357
Short Sales	306	428	223	2,610
Bank Owned	736	743	60	417

In January of this year, Bank Owned homes accounted for 44% of all the homes sold in Orange County. In May, that number had fallen to 31%, and the trend continues. Bank Owned properties currently make up only 4% of all homes on the market, and for the first week of June only account for 1 in 10 of the properties sold or placed in escrow for sale. RealtyTrac reports that foreclosures are still happening at a record pace, but they have not yet hit the market. The net impact has been a firming up of prices and intense competition for homes priced below $500,000.

Has the OC Housing Market Bottomed Out?

The Orange County Register reported that the median price of a home in OC climbed for the second consecutive month. The March median was $385,000, up from $375,000 in February and $370,000 in January. Another bullish sign is the continued climb in the number of homes sold. March was the ninth consecutive month of year-over-year sales increases, with 2,433 homes sold - a 46% jump from March of 2008.

There are still plenty of concerns in the market, with homes priced over $500,000 selling slowly, and short sales accounting for about 30% of the homes on the market. One interesting wrinkle is that bank owned homes have become a scarce commodity. Just a few months ago bank owned properties also made up about a third of the transactions, but today only represent 5% of the homes for sale. REOs, especially in the lower price ranges, are in huge demand because of the relative simplicity of the transaction compared to a short sale, and the market is hot. Most bank owned homes are selling within a few days or weeks, and often at full price or higher. The Wall Street Journal has even dared to use the term "bidding war"!

There has been talk for months about a so-called moratorium on foreclosures related to the Federal financial bailout, TARP, and consolidation of banks, with speculation that it would soon end. This, of course, could lead to a new round of foreclosures and another influx of REO inventory on the market. That might lead to more downward price pressure, but it also might signal the final phase of a long and painful process.

Home Sales Heating Up, Distressed Inventory Down

Read about it on Leslie's site.

Some Heat at the Lower End

The newspapers continue to be filled with doom and gloom, largely focused on the steady fall in the median price of homes sold in Orange County. As we all know, prices do continue to fall, but reduction in median price exacerbated by the dynamic of slow-moving expensive homes and fast moving homes at lower prices.

Let's take a look at Bank Owned homes under $500,000. Since January 1, 2009, just over 1,400 REO houses and condos have sold below that level. Of the 1,400, fully two-thirds were on the market as an REO for less than 60 days, and of those the average time on the market was less than 30 days! Not only did they sell quickly, but about 36%, more than 500 of the 1400, sold for over the final list price!

The message is clear - once a home under $500k is priced properly there are multiple buyers prepared to act quickly.

Homes priced below $500,000, combined with incredibly low interest rates, represent an opportunity for first-time buyers that hasn't been seen in years, but it is critical that once you've made the decision to buy you do all you can to be ready to act when the right deal appears. Get your lender approval letter, your source of funds for the down payment, and earnest money deposit check into your agent's hands. Then, when that perfect little house has a price reduction that catches your eye you'll be in the driver's seat and won't lose it to someone who was better prepared.

For a sampling of bank owned homes currently on the market, check out these links:

Coto de Caza
Ladera Ranch
Mission Viejo
Rancho Santa Margarita
All Orange County

CAR Housing Market Report not all gloom

The California Association of Realtors released a new Housing Market Report this week which highlights the huge impact of the global financial crisis, with the chief symptom being the continued and increasing number of short sales and bank owned home sales. Never the less, there are some signs of positive news in the numbers.

Sales generally improved over last year in all parts of the state, with significant price declines leading to sharp increases in the Central Valley and Southern California. Sales of existing detached homes hit bottom in the last quarter of 2007, and have since risen in year to year comparisons. Following two years of steep declines exceeding 20 percent, annual sales in the California housing market are expected to increase 12 percent to 395,600 in 2008, with a further 12.5 percent annual increase projected for 2009.

The real distressed segment of the market continues to be the lower price range, as shown by a comparison of the number of sellers selling their home at a loss:

Homes Sold at a Loss
Price Range	2007	2008
Under $500k	16%	28%
$500k - $1Million	9%	20%
Over $1Million	8%	5%

Another point which is often overlooked is that ground zero for most the distress in the real estate market is centered on those who purchased recently at the peak of the market. In 2008 a whopping 47% of sellers who had purchased within the last 3 years and a net cash loss, while only 97% of sellers who held there home more than 5 years did not experience a loss.

Interested in taking advantage of what may be a once-in-decades investment opportunity? Check out the bank owned deals available in Mission Viejo, Rancho Santa Margarita, Ladera Ranch, even Coto de Caza, or all of Orange County.