Short Sale Advice from Nic Petrossi, Orange County Realtor

There are 5 things you can do when you realize you can no longer make your mortgage payments:

1. Nothing
2. Deed in Lieu (Hand the Title, and keys, back to bank)
3. Short Sale
4. Bankruptcy
5. Loan Modification

All of these options will adversely affect your credit.  However, some options ARE better than others.

For example, the on the severity scale of how bad your credit will take a hit, on a scale of 1 to 10, an outright foreclosure or bankruptcy is like an 11.  The Deed in Lieu is probably the dumbest thing to do because the bank will let you stay in the home rent free for a while anyhow while you work this all out.

A Loan Modification is the best route to take, but you have to know what you’re doing.  There are only a handful of legitimate Loan Modification companies out there that know how to handle this for you (for a fee) but are well worth the money.  Making your monthly payment smaller could allow you to keep your home and sometimes the bank will reduce the AMOUNT owed (principal balance). 

A short sale is the best route to take, usually, if you…A) Can’t get a loan modification, B) The loan modification doesn’t help anyhow because you can’t afford even the new amount, C) The home you’re living in is your principal residence (i.e. it’s not an investment property), and D) you can work out discharge of indebtedness with the IRS.

We get the term “short sale” from the fact that the bank is taking less from the proceeds from the sale of your home than the current loan amount owed.  Ergo, the bank comes up “short.”  In other words, the bank takes the hit in the pocket and you take the hit to your credit.  When you short sale, the amount “forgiven” you by then bank for the difference owed and the final purchase price is actually considered a “gift” by the government, and the government will tax your income accordingly. 

Example:   You bought your home in 2006 for $750,000.  The home is now worth $600,000 and you’ve lost your job.  Your wife (or husband) can’t handle the payments with their income alone.  You try to call the bank and work out a loan modification but the bank says “no” even though the person on the phone is not authorized to tell you “no.”  So you call an expert who can negotiate with the bank for you.  THAT doesn’t even work so now you must short sale your home.  You find a real estate agent who lists the home you once bought at $750,000 for $575,000.  The agent tells you that you need to get together a “packet.”  The packet consists of two years taxes, 2 months bank statements, a hardship letter to the bank explaining why you can’t make your payments, and any other documentation of income.  The agent gets several offers and eventually (after several weeks) submits the highest and best offer (we’ll say $600,000 for the sake of this discussion) to the bank with the “packet.”  The packet with the offer reaches the bank’s loss mitigation department where it sits on a desk with several other offers and packets on several different properties.  If there are 2 or more lenders on your home, the packet and offer have to be sent to those banks as well.  When there is a Second on the property, it gets sticky because the First Lien Holder always wants to screw the Second Lien Holder and the Second wants to get something out of the deal.  The negotiations between the 1st, 2nd (and sometimes) 3rd Lien Holders will often delay this process even longer.  Let’s say the bank settles on the $600,000…and you owe $700,000 since you originally put down $50,000 when you bought the place.  Now, you are taxed on that $100,000 as if you made that money since it is considered a gift by the IRS.

The good news is that there was a bill passed by Congress to relieve you of that “gift” taxation as long as you live in the property as primary residence and can prove insolvency (that your bills are more than your income).  You would then apply for this using IRS form 982 called “Reduction of Tax Attributes Due to Discharge of Indebtedness.”  You apply when you file your income taxes.  The word on the streets is that the IRS is so back-logged that they are not going after people for the difference on their home’s short sale, but I wouldn’t trust in that information but consult a CPA or lawyer to see how you’ll be affected.

Need help selling or buying a home in Orange County? 

Contact me, Nic Petrossi with Prudential at (714) 272-3646 or email me at npetrossi@yahoo.com

Click here to check out my website —–>    CLICK HERE

NIC PETROSSI (714) 272-3646 Brea Realtor Placentia Realtor Fullerton Realtor Yorba Linda Realtor

Ladies and Gentlemen,

The Market is changing.  Dramatically.

There are dozens of Brea real estate agents, Yorba Linda real estate agents, Placentia real estate agents, Fullerton real estate agents, Anaheim Hills real estate agents from large firms (e.g. Prudential, C-21, Seven Gables, REMAX) who are saying it is EXTREMELY difficult to get their buyers into a property.

What does this suggest???

The market is shifting right in front of our eyes.  I’m coming out now to say — WE’VE HIT THE BOTTOM…at least in the under $500K price range for homes in excellent condition. When it comes to the $300K price range in Northeast Orange County, fuggetaboutit.  What would you say if I told you there are properties with 10, 20, 30 offers on them going for $100K over asking price?  That’s right, if it sounds too good to be true, it is.  A fellow agent in my office made an offer with a client on a home listed at $289,000.  His client’s offer?  $320,00.  He went up to $331,000.  The assistant for the listing agent of this Bank Owned property in Anaheim called to tell him the bad news:

   “Aaron, we have an offer for $370,000.”

             Fuggetaboutit

It’s time to stop listening to what your friends and family are saying or what you’re hearing on TV or reading in the paper…if you want a nice home for a nice price this year, you need to get your “ducks in a row.”  You need to get pre-qualified, you (and your real estate agent) need to be constantly watching for the properties to pop on the market.  This is beginning to look a lot like 2002 again except the banks aren’t going to let it get away from them again and have it crash down on their heads.  The safeguard will be VERIFY, VERIFY, VERIFY.  Verify income, verify downpayment, verify DTI.

Call Nic Petrossi, Prudential for any questions, dialogue, to start the process of finding that right home for you.  Need to sell your home?  I do that too.   (714) 272-3646  cell  (714) 257-3606 office 

npetrossi@yahoo.com

Click here for website:       CLICK HERE!

Fullerton Short Sale Realtors & Agents – What are my options???

There are 5 things you can do when you realize you can no longer make your mortgage payments:

1. Nothing
2. Deed in Lieu (Hand the Title, and keys, back to bank)
3. Short Sale
4. Bankruptcy
5. Loan Modification

All of these options will adversely affect your credit.  However, some options ARE better than others.

For example, the on the severity scale of how bad your credit will take a hit, on a scale of 1 to 10, an outright foreclosure or bankruptcy is like an 11.  The Deed in Lieu is probably the dumbest thing to do because the bank will let you stay in the home rent free for a while anyhow while you work this all out.

A Loan Modification is the best route to take, but you have to know what you’re doing.  There are only a handful of legitimate Loan Modification companies out there that know how to handle this for you (for a fee) but are well worth the money.  Making your monthly payment smaller could allow you to keep your home and sometimes the bank will reduce the AMOUNT owed (principal balance). 

A short sale is the best route to take, usually, if you…A) Can’t get a loan modification, B) The loan modification doesn’t help anyhow because you can’t afford even the new amount, C) The home you’re living in is your principal residence (i.e. it’s not an investment property), and D) you can work out discharge of indebtedness with the IRS.

We get the term “short sale” from the fact that the bank is taking less from the proceeds from the sale of your home than the current loan amount owed.  Ergo, the bank comes up “short.”  In other words, the bank takes the hit in the pocket and you take the hit to your credit.  When you short sale, the amount “forgiven” you by then bank for the difference owed and the final purchase price is actually considered a “gift” by the government, and the government will tax your income accordingly. 

Example:   You bought your home in 2006 for $750,000.  The home is now worth $600,000 and you’ve lost your job.  Your wife (or husband) can’t handle the payments with their income alone.  You try to call the bank and work out a loan modification but the bank says “no” even though the person on the phone is not authorized to tell you “no.”  So you call an expert who can negotiate with the bank for you.  THAT doesn’t even work so now you must short sale your home.  You find a real estate agent who lists the home you once bought at $750,000 for $575,000.  The agent tells you that you need to get together a “packet.”  The packet consists of two years taxes, 2 months bank statements, a hardship letter to the bank explaining why you can’t make your payments, and any other documentation of income.  The agent gets several offers and eventually (after several weeks) submits the highest and best offer (we’ll say $600,000 for the sake of this discussion) to the bank with the “packet.”  The packet with the offer reaches the bank’s loss mitigation department where it sits on a desk with several other offers and packets on several different properties.  If there are 2 or more lenders on your home, the packet and offer have to be sent to those banks as well.  When there is a Second on the property, it gets sticky because the First Lien Holder sometimes doesn’t care about the Second Lien Holder and the Second wants to get something out of the deal.  The negotiations between the 1st, 2nd (and sometimes) 3rd Lien Holders will often delay this process even longer.  Let’s say the bank settles on the $600,000…and you owe $700,000 since you originally put down $50,000 when you bought the place.  Now, you are taxed on that $100,000 as if you made that money since it is considered a gift by the IRS.

The good news is that there was a bill passed by Congress to relieve you of that “gift” taxation as long as you live in the property as primary residence and can prove insolvency (that your bills are more than your income).  You would then apply for this using IRS form 982 called “Reduction of Tax Attributes Due to Discharge of Indebtedness.”  You apply when you file your income taxes.  The word on the streets is that the IRS is so back-logged that they are not going after people for the difference on their home’s short sale, but I wouldn’t trust in that information but consult a CPA or lawyer to see how you’ll be affected.

Need help selling or buying a home in Orange County? 

Contact me, Nic Petrossi with Prudential at (714) 272-3646 or email me at npetrossi@yahoo.com

Click here to check out my website —–>    CLICK HERE

Nic Petrossi, Fullerton Realtor – Complete List of Bank Owned | REO | Foreclosures as of Nov. 4, 2008

Below is a list of all Bank Owned Properties in Fullerton from the MLS.  This list is taken from MLS and is up-to-date and more reliable than any website you have been using to search for Fullerton Homes.

Contact me through my website —-> WEBSITE to set up a time to see any of these homes or to search for homes on the MLS, view my featured properties, etc.  If you are in the process of looking for a home, I can set up a search for you directly from the MLS.  If you are getting ready to sell your home, go with a company that is rated #1 by J.D. Powers & Associates in Customer Satisfaction for 2008, Prudential Realty.  Go with an agent who will work hard to sell your home and has a track record of communication and performance, Nic Petrossi.

 

Tue, Nov 4, 2008 11:06 PM

RES	MLS #	Status	P	V	H	T	Q	Type	A/D	Address	City	Area	Zip	TGNO	Trct/M	Bd	B t/f	Sty	Gar	SqFt	Yr Blt	Price	DOM
1	P657555	A	12		H	T	Q	CONDO	A	400 N Acacia Ave D13	FUL	83	92831	739B6	OTHR/*	1	1/1	1	0	673	1965	$129,900	41	*
2	U8003750	A	2		H	T	Q	CONDO	A	1410 Peckham St E	FUL	83	92833	768C2	OTHR/%	2	1/1	1	1 D	884	1979	$139,000	77	*
3	R808325	A	9		H	T	Q	CONDO	A	400 N Acacia Ave D11	FUL	83	92831	739B6	OTHR/0	1	1/1	3	1	680	1965	$149,900	23
4	R807011	A	9		H	T	Q	CONDO	A	1610 S Pomona Ave C15	FUL	83	92832	768H2	OTHR/a	1	1/1	2	1 D	886	1963	$180,761	106	*
5	P655985	A	5		H	T	Q	CONDO	A	400 Acacia Ave B27	FUL	83	92831	739B6	OTHR/0	1	1/1	1	0	673	1965	$184,900	53	*
6	R808812	A	7		H	T	Q	CONDO	D	2252 Cheyenne Way 62	FUL	83	92833	738A3	FUCR/0	1	1/1	1	1	644	1983	$184,900	42	*
7	L27628	A	10		H	T	Q	CONDO	A	2245 Cheyenne Way 49	FUL	83	92833	738A3	OTHR/0	1	1/1	1	0	644	1983	$184,900	37	*
8	R809549	A	8		H	T	Q	CONDO	A	1601 S Pomona Ave D4	FUL	83	92832	768H2	OTHR/1	2	2/2	1	1	1,157	1963	$198,900	14
9	P646099	A	9		H	T	Q	CONDO	A	1500 S Pomona Ave B2	FUL	83	92832	768H2	OTHR/0	2	2/1	1	1 D	1,130	1963	$205,000	104	*
10	P655774	A	2		H	T	Q	CONDO	A	1620 S Pomona Ave C21	FUL	83	92832	768H2	OTHR/0	1	1/1	1	1	886	1963	$209,900	54
11	P636060	A	9		H	T	Q	CONDO	A	3151 Cochise Way 39	FUL	83	92833	738A3	OTHR/0	2	2/1	2	0	1,013	1984	$214,900	182	*
12	R805015	A	20		H	T	Q	CONDO	A	670 Bridgeport Cir 24	FUL	83	92833	738D6	FUCH/0	2	1/1	2	1	713	1984	$229,900	172	*
13	P638306	A	16		H	T	Q	CONDO	A	1737 N Brea Blvd 221	FUL	83	92835	738H4	OTHR/A	2	2/2	2	0	956	1974	$239,900	168	*
14	P655518	A	4		H	T	Q	CONDO	A	2006 Associated Rd 2	FUL	83	92831	739C4	OTHR/0	2	2/1	1	0	965	1968	$242,900	55	*
15	P662808	A	1		H	T	Q	CONDO	A	2959 Haddonfield Loop	FUL	83	92831	739D5	OTHR/O	2	2/1	S	2	1,055	1973	$244,900	5
16	P659506	A	7		H	T	Q	CONDO	A	4108 CAROL Dr A-2	FUL	83	92833	738A7	OTHR/0	3	2/1	1	2	1,066	1977	$252,000	28
17	P655439	A	1		H	T	Q	SFR	D	1907 W Carol Dr	FUL	83	92833	738C7	OTHR/*	3	2/1	1	0	1,219	1956	$259,900	48
18	S550056	A	1		H	T	Q	SFR	D	1113 WILLIAMSON Ave	FUL	83	92833	738F7	OTHR/0	2	1/1	1	1	819	1949	$260,000	29
19	F1779546	A	10		H	T	Q	SFR	D	112 W Ash Ave	FUL	83	92832	768H1	OTHR/1	2	1/1	1	1 D	943	1923	$265,000	68
20	M110190	A	1		H	T	Q	SFR	A	3221 Topaz Ln	FUL	83	92831	739E5	OTHR/0	2	2/2	1	2	1,369	1963	$269,900	15	*
21	P661668	A	2		H	T	Q	SFR	D	2340 Carol Dr	FUL	83	92833	738B7	OTHR/*	3	2/1	1	1 A	1,599	1951	$269,900	13
22	R808696	A	4		H	T	Q	SFR	D	400 Jensen Way	FUL	83	92833	768C1	OTHR/1	3	1/1	1	2	858	1953	$270,000	47
23	P648734	A	12		H	T	Q	CONDO	A	4109 Carol Dr C	FUL	83	92833	738A7	CUST/a	3	2/2	1	2 D	1,100	1991	$278,000	102	*
24	P662766	A	1		H	T	Q	SFR	D	1618 W Houston Ave	FUL	83	92833	768D2	OTHR/0	3	2/1	1	2 A	1,309	1955	$279,900	6
25	P657033	A	9		H	T	Q	SFR	D	2416 W Valencia Dr	FUL	83	92833	768B1	OTHR/0	3	2/1	1	2 D	1,094	1952	$285,000	12
26	S547308	A	7		H	T	Q	SFR	D	121 S Orchard Ave	FUL	83	92833	738E7	OTHR/0	3	2/1	1	0 D	1,002	1950	$289,900	53
27	P663308	A	1		H	T	Q	SFR	D	1714 W West Ave	FUL	83	92833	768D1	OTHR/O	3	2/2	1	2 A	1,489	1952	$289,900	1
28	P655287	A	3		H	T	Q	SFR	D	713 S Pine Dr	FUL	83	92833	768C1	OTHR/0	3	2/2	1	1 A	1,187	1951	$299,900	56	*
29	P656277	A	1		H	T	Q	SFR	D	1316 W Woodcrest Ave	FUL	83	92833	768E2	OTHR/0	4	2/1	1	2 A	1,290	1954	$299,900	23	*
30	S538086	A	3		H	T	Q	SFR	D	605 W Ash Ave	FUL	83	92832	768G1	OTHR/0	4	2/2	1	2	1,300	1955	$300,000	28
31	P663358	A	8		H	T	Q	SFR	D	424 W Houston Ave	FUL	83	92832	768G2	OTHR/A	3	2/1	1	2	1,523	1958	$309,000	1
32	U8004774	A	1		H	T	Q	SFR	D	2118 W Porter Ave	FUL	83	92833	768C1	OTHR/%	3	2/2	1	2 D	1,190	1954	$309,900	10
33	R808020	A	9		H	T	Q	CONDO	A	1347 Cameo Ln	FUL	83	92831	739E5	OTHR/0	4	3/2	2	2 A	1,774	1964	$319,900	71	*
34	P662032	A	4		H	T	Q	SFR	D	2024 W Hill Ave	FUL	83	92833	768C1	OTHR/0	3	2/2	1	2 A	1,575	1958	$319,900	11
35	R809383	A	14		H	T	Q	CONDO	A	2335 Coventry Cir 139	FUL	83	92833	738C3	OTHR/0	3	2/2	2	2	1,176	1980	$324,900	21
36	P651273	A	11		H	T	Q	SFR	D	731 W Houston Ave	FUL	83	92832	768F2	OTHR/0	3	2/1	1	2 A	1,246	1954	$335,000	66	*
37	U8001501	A	1		H	T	Q	SFR	D	743 W Rosslynn Ave	FUL	83	92832	768F1	OTHR/%	3	2/2	1	2 A	1,471	1956	$345,000	145
38	P655855	A	4		H	T	Q	SFR	D	2515 E Santa Fe Ave	FUL	83	92831	739C7	OTHR/0	3	2/2	1	2 A	1,252	1956	$364,000	53	*
39	P660829	A	4		H	T	Q	SFR	A	132 E Ash Ave	FUL	83	92832	768H1	OTHR/0	2	1/1	1	0	1,288	1930	$369,000	19
40	S541419	A	6		H	T	Q	SFR	D	1466 W Valencia Dr	FUL	83	92833	768D1	OTHR/z	4	2/1	1	2	1,400	1955	$369,900	42
41	R809796	A	1		H	T	Q	SFR	D	2032 E Santa Fe Ave	FUL	83	92831	739B7	OTHR/-	3	2/2	1	2 A	1,370	1958	$369,900	5
42	P663491	A	13		H	T	Q	SFR	D	1658 Gregory Ave	FUL	83	92833	738D7	OTHR/*	4	2/1	1	2 D	1,745	1948	$374,900	0
43	F1781434	A	2		H	T	Q	SFR	D	2514 Santa Clara Ave	FUL	83	92831	739C7	OTHR/1	3	2/2	1	2	1,273	1956	$375,000	63
44	P654385	A	8		H	T	Q	CONDO	A	1360 Mc Fadden Dr	FUL	83	92833	738c5	GALW/A	2	2/2	2	2	1,220	2003	$384,900	62	*
45	P639277	A	1		H	T	Q	CONDO	A	2762 Via Segovia 86	FUL	83	92835	739A3	OTHR/*	3	3/2	2	2 A	1,386	1973	$389,900	161	*
46	P662350	A	7		H	T	Q	SFR	A	2245 Chaffee St	FUL	83	92833	738C5	OTHR/0	3	3/3	2	2 A	1,600	2004	$399,900	8
47	P651760	A	1		H	T	Q	SFR	D	1347 W Maxzim Ave	FUL	83	92833	768E2	OTHR/1	3	2/2	1	2	1,549	1957	$400,000	82
48	P662961	A	14		H	T	Q	CONDO	A	1011 Loma Vista Pl	FUL	83	92833	738B6	OTHR/*	3	4/1	2	2 A	1,718	1979	$414,900	5
49	R809813	A	20		H	T	Q	CONDO	A	1295 Noutary Dr	FUL	83	92833	738C5	GALW/4	3	3/2	2	2 A	1,463	2003	$415,000	3
50	P662970	A	12		H	T	Q	CONDO	A	1252 McFadden Dr	FUL	83	92833	738C5	GALW/D	3	3/2	2	2	1,463	2003	$449,900	4
51	Y807074	A	20		H	T	Q	SFR	A	4086 Castaway Cv	FUL	83	92833	738A3	OTHR/0	4	3/2	2	2	2,003	1999	$499,900	7
52	M110222	A	6		H	T	Q	SFR	D	1331 El Mirador Dr	FUL	83	92835	739A2	OTHR/0	5	2/2	1	2	1,848	1963	$540,000	6
53	P661884	A	11		H	T	Q	CONDO	A	2107 Owens Dr	FUL	83	92833	738D6	RADC/0	3	3/2	3	2 A	1,650	2006	$544,900	12
54	P663000	A	1		H	T	Q	SFR	D	1531 Victoria Dr	FUL	83	92831	739A6	OTHR/0	5	2/2	1	1	2,167	1955	$577,900	4
55	P654114	A	5		H	T	Q	SFR	D	2277 El Rancho Vis	FUL	83	92833	738c4	OTHR/0	5	3/3	2	2	2,766	1964	$619,900	64	*
56	R807414	A	1		H	T	Q	SFR	D	1251 Coach House Ct	FUL	83	92831	739A3	3WOOD/-	4	3/2	S	2 A	2,200	2000	$669,900	93	*

 

NIC PETROSSI, Orange County Homes Specialist — Where are We Headed?

According to the Orange County Register (who uses Data Quick for their home sales data), we are 56% better off than this time a year ago.  (If we didn’t count new home sales we’d be looking at more like 77%).  Here is how things will go down for the end of 2008 and the beginning of 2009:

End of 2008

   Typically the Holiday season is slow for real estate.  People are thinking of a head count for Thanksgiving and when to pull out the Christmas decorations from the boxes in the garage.  However, this year will be different.  There is a force in the real estate market called “pent up demand.”  This is when there are buyes who were “fence sitting” waiting for the market to hit bottom who are now coming out of the woodwork to buy a home.  This influx of buyers will mean increased demand and decreased supply.  Expect November and December of 2008 to be better than the November and December of 2006 or 2007. 

 

Beginning of 2009

   Although we will still see foreclosures and short sales popping up all over Orange County, we won’t see AS MANY as we have at the end of 2007 and beginning of 2008.  Orange County is faring much better than the Inland Empire (IE) where it seems like 2 out of 3 homes for sale are short sales or bank owned REO’s.  The balance between buyer and seller will be almost restored as we head into summer of 2009.  We won’t see as many “low ball” offers and the pendulum will swing back in favor of sellers.

 

Contact me through my website (phone # on website) if you’re looking to buy or sell a home in North Orange County ———->  NIC’S WEBSITE.

Boo!…Are You Scared Yet? Thoughts from a Placentia Realtor

Well here we are, it’s almost Halloween and it’s amazing how time flies!

We have seen so much happen in the last 4 years…the housing BUBBLE DEFLATION (the “bubble” is looking more like a deflated jumper on the lawn of a 7 year old birthday party).  We have seen banks scramble as they take back thousands of placentia homes, yorba linda homes and orange county homes back on their books.  We have seen BLACK MONDAY when the stock market plunged with almost unprecedented decreases.  (Scary, but felt almost the same way when I was watched the World Trade Center go down).  It has been a very volatile last few years.  Presently only home owners in North Orange County who bought homes 2003 or sooner have homes worth more than when they were purchased.  It has taken 3 years for homes to go back down to 2004 values.  Now, most buyers who have been sitting on the fence are eyeing the bank owned repos feeling that the best deals are in the foreclosure market.  We’re seeing bank owned foreclosures with attracting multiple offers and agents in our Prudential Brea office are complaining that in some areas they cannot win the bidding war to get their client a home! 

When you have multiple offers, you’re usually near the bottom of a downward trend.  It has taken a long time, but sellers are finally becoming more realistic about the true worth of their home.  Those that are unrealistic or just “testing the waters” of the market are taking their homes off the market when they sit for months and months with no serious offers.  Less people put their homes on the market in September / October / November / December so what we’re seeing is a decrease in inventory for re-sale homes and an increase in the number of buyers entering the market who are hoping to time the “bottom” perfectly (like trying to buy when stocks are at their absolute lowest). 

So, when is a good time to sell?  Answer:  Whenever you HAVE TO.  I’m finding that sellers who HAVE to sell are selling their homes because they’re lowering their prices to attract offers.  Sellers who WANT to sell will not sell their homes unless they’re willing to compete with the HAVE TO sellers and join the elite group who are pricing their homes under market, ahead of the bell curve.  These are the sellers that will look back and be glad they did what they had to do.  Those that played around with trying to get top dollar will be looking back saying, “Gosh darn, I should have been more aggressive.”

October 12, 2008 Placentia Foreclosures, Brea Foreclosures, Yorba Linda Foreclosures, Anaheim Hills Foreclosures, Orange County Foreclosures — A Response to O.C. Register Article

An article came out today in the Orange County Register Front Page regarding Orange County Foreclosures. (Orange County, CA that is).  Writer Mathew Padilla quotes DataQuick Data company as his source saying there are more than 3,300 unsold foreclosures in Orange County as of early September 2008.  Though we all know that good news does not sell newspapers and that the O.C. Register is notorious for skewing data to achieve their ends (increased newspaper subscriptions), Mathew Padila did admit that homebuyers are snatching up foreclosures.  This is true.  As a Realtor, I have made offers with buyers on short sale properties and bank owned properties (foreclosures) and have found pretty stiff competition with multiple offers and buyers often out-bidding each other by anywhere from $5,000 over asking price to (I’ve seen) $100,000 over asking price when the home is priced so far under market value that home buyers and investors realize to get the home, they have to sometimes go WAY over asking price. 

Placentia Home Example:

  A home in my own neighborhood in Placentia (smaller unit) was selling as bank owned for $399,990.  I put an offer on this home at full asking price.  It turns out, there were already (1st day on market!!!) several offers already on the table, according to listing agent.  The home ended up selling for (get this) $455,000.  So, although it may be true that there several foreclosures on the market, the GOOD ONES are being bought up immediately and buyers are often paying MORE than asking price when they realize what a ridiculous deal it is. 

Furthermore, the article in the O.C. Register does not specify the number of foreclosurs per city / area.  What this means is that there the 3,300+ homes are mostly in areas where most of the bad loans (stated income negative amortization or adjustables) were issued.  The real numbers for local cities?

Placentia Foreclosures:  25 Bank Owned (REO) Properties out of 186 homes on the market as of TODAY, October 12, 2008.  That’s a whopping 13% baby!

Yorba Linda Foreclosures:  15 Bank Owned (REO) Properties out of 384 homes on the market as of TODAY, October 12, 2008.  Hold on to your hats and glasses for this stat — That’s a whole 4% !!!!! 

Brea Foreclosures:  7 Bank Owned out of 111 total properties (again as of today)…that’s 6% folks.

Is Supply really ahead of Demand as Mathew Padilla says?  Well, in some cities, but when you have only 15 foreclosures listed on the MLS in Yorba Linda out of 384 homes, I wouldn’t call that a majority.  In fact, I’d say that these 15 properties are either going to be bought and gone tomorrow or there is something seriously wrong with some of them.  Buyers are buying REOs like they’re going out of style, when they are priced right (which 90% they are) and they are in good areas.

Looking for a foreclosed / bank-owned property in a great area?  Let me do the research.  If you’re looking in the North Orange County area (Fullerton, Placentia, Brea, Placentia, Orange, Anaheim Hills) or even some of the perimiter cities, I’ll run the search for you and send the properties to your email.

Send your request to:  npetrossi@yahoo.com    or visit my website, click here —> Nic’s Website

For more foreclosure information, check out RealtyTimes, RealtyTrac.com or Yahoo! Real Estate.  (make sure you click the “foreclosures” bubble.  Your best bet is to send your request to my email since I can weed out the homes that are already in escrow or in neighborhoods that are right for you.

$700 Billion Bailout Plan — What does this mean for Placentia Homes, Yorba Linda Homes, Brea Homes and Orange County Home Values?

$700 Billion….what does this mean for values of Placentia homes, Yorba Linda homes, Brea homes, and Orange County homes in general?  Well, first of all, I want to address Senator John McCain’s response to the question asked in the debate on Tuesday, October 7, “What are you going to do to help our economy?”  The answer was something to this effect — (For the government to) Buy up all those bad loans in America.”  Why is this significant?  Though foreclosures in Orange County (and the rest of America for that matter) are still going to be commonplace in 2009-2010, the ability of people stuck in Negative Amortization or 3,5,7 year adjustable mortgages to refinance their home after the government has “bought” their old loan will enable them to lower their payments and remain in their homes.  This won’t be the cure completely, but will at least stop the bleeding of the downward spiral of home prices in Yorba Linda, Placentia, Brea, Fullerton, and Orange County as a whole.

   Foreclosures and short sales are killing home prices.  When a Realtor prices a home well below the comparables (comps), and the home sells for much much less (as in a short sale situation), the rest of the “regular” sale homes in the neighborhood suffer.  When a bank hires a Realtor to sell a placentia bank owned (Placentia REO) home and that Realtor does a BPO (Broker Price Opinion) and prices the home way below the comparables, AND it sells, all the homes in the neighborhood suffer. 

So, what hopefully, though someone can correct me if I am wrong (and I’m open to correction) part of this bail out plan encompasses is relieving a large percentage of home owners with loans that are about to “re-set” sometimes to double the monthly payment (as in an adjustable situation) from this burden and giving them a chance to remain in their homes, NOT have to give their home back to the bank, this helps to alleviate some of the downward pressure on homes in America.

This post is from a Placentia Realtor / Yorba Linda Realtor.  Comments and feedback are more than welcome.  There is much that remains to be seen and see where we are once the dust settles.

 

Placentia Schools & Yorba Linda Schools (Middle / High) API Scores for 2007

Although there are several important factors when deciding on a school for your children (location, demographics, calendar, etc.), the Academic Performance Index (API) standardized test is a measure of school performance and progress. Scores range from 200 to 1000.  A score above 800 is considered very good comparatively, and a score above 900 is considered extremely good or excellent in comparison to other schools statewide.

 

API ranks by school:

 

Bernardo Yorba Linda Middle  831

Travis Ranch Middle  No Accountability Report on Website

Yorba Linda Middle  841

Kraemer Middle  749

Valadez Middle  No Acountability Report

Tuffree Middle  822

 

El Dorado High  802

Esperanza High  837

Valencia High  758

 These scores are from each school’s Accountability Report posted on PYLUSD’s website…as a Placentia Realtor / Yorba Linda Realtor and Area Specialist, I make it my goal to be educated and informed on the boundary areas, schools and miscellaneous school info for my clients’ sakes.

For Boundary Maps of where you must live for your child to attend these schools go to my website à  http://www.nicpetrossi.com/  and click on the “School Boundary Maps” button.  You can also find information on Placentia homes, Yorba Linda homes, Brea homes, Fullerton homes, North O.C. city info and search MLS.

Example of YouTube Placentia Home for Sale Pitch (513 Dickinson Circle, Placentia)

Sorry about the quality…we’ll be enhancing this next go round.

http://www.youtube.com/watch?v=nJcw0XQWlVE

What a great way to advertise your listings in this digital age!!!

 To see example of video introduction for your real estate website, click here –> Placentia Realtor, Yorba Linda Realtor, Placentia Homes for Sale, Yorba Linda Homes for Sale