Previous Mortgage Foreclosure

A borrower whose previous residence or other real property was foreclosed on or has given a deed-in-lieu of foreclosure within the previous three years is generally not eligible for an insured mortgage.

However, if the foreclosure of the borrower’s principal residence was the result of extenuating circumstances beyond the borrower’s control and the borrower has since established good credit, an exception may be granted. Extenuating circumstances do not include the inability to sell a house when transferring from one area to another.

Bankruptcy

A bankruptcy (Chapter 7 liquidation) will not disqualify the borrower if :

·         At least two years have passed since the bankruptcy was discharged, and

·         The borrower has re-established good credit (or has chosen not to incur new credit obligations), and

·         The borrower has demonstrated an ability to manage financial affairs

A summary of the details:

The primary goal to help families remain in their homes. The programs, under the umbrella title of Keep Your Home California, are federally funded as part of the U.S. Treasury Dept.’s Hardest Hit fund, and are aimed at helping low and moderate income homeowners struggling to pay their mortgages amid the worst real estate crisis in decades.  California received a total of nearly $2 billion through the Hardest Hit fund. After consulting with community leaders throughout the state, four programs were created to assist California families.
Specifically, the Keep Your Home California programs provide:
1)  Mortgage assistance of up to $3,000 per month for unemployed homeowners who are in
imminent danger of defaulting on their home loans.

2) Funds to help homeowners who have fallen behind on their mortgage payments due to a
temporary change in a household circumstance. The program will provide up to $15,000
per household to reinstate mortgages to prevent foreclosures.

3) Money to reduce the principal owed on a mortgage (WOW!) for a home where the low or moderate income homeowner is facing a serious financial hardship and owes
significantly more than the home is worth. The program requires lenders to match any
assistance provided by the Keep Your Home California program.
To apply for the assistance, homeowners should contact the Keep Your Home California call center toll-free at (888) 954-KEEP(5337) or their mortgage servicer – the company to which the borrower sends monthly mortgage payments. Each of the mortgage assistance programs requires the participation of the mortgage servicer.
As of Feb. 9, the following servicers are participating in all four Keep Your Home California programs:
GMAC
Guild Mortgage
California Housing Finance Agency
California Department of Veterans Affairs
Other servicers, including Bank of America, JPMorgan Chase, CitiMortgage and Wells Fargo are currently participating in some, but not all programs at this time. The list of participating servicers is expected to expand in the coming weeks.

Awesome investment opportunity for an investor or anyone looking to purchase a steady income property:

1. 11.8% monthly return for cash buyers
2. Approximately $500 – $700 per month cash flow for credit buyer with 30% down

5 Bedrooms + 2 Optional, 3.5 Bath, and approx. 4,612 Square Feet

Large spacious executive style residence, custom marble flooring in the foyer, downstairs office, dining room with designer chandelier, dual staircase off entry and family room, bonus room with view balcony. Oversized gourmet kitchen: granite counters, stainless steel GE Monogram appliances, two sinks, dual ovens, and eat in bar. The large family room offers a built in entertainment center and custom stone fireplace and mantle. Master suite: separate retreat/study area, private balcony with ocean and golf course views. Master bath: Jacuzzi tub, marble enclosed shower, bronze fixtures, walk-in-closet and dual vanities. The inviting rear yard has mature landscape, covered patio, outdoor kitchen, and built in spa.

For pricing and more information contact The Lund Team:

REO@lundteam.com or call (760) 438-0800

About the community: Private gated community, separate residence club house,  junior sized Olympic pool, spa, and four tennis courts. From golf villas to turnkey custom homes, luxury and elegance carry the day at The Crosby. Inspired by the legendary Rancho Santa Fe architecture of Lillian Rice, residential designs at The Crosby embrace the casual elegance so long associated with the region.

17028 Blue Shadows Lane

2 Bedroom + 1 Optional Room, 3.5 Bath, and approx. 3,034 Sq. Ft.

Home site on golf course, Mediterranean / Santa Barbara style architecture, large rear yard, landscaped front and rear, spa, and interior courtyard.

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16908 Simple Melody Lane

4 Bedroom, 4 Bath, and approx. 3,121 Sq. Ft.

Detached villa, former model home, travertine and wood flooring , gourmet kitchen with upgraded appliances, executive style master suite, panoramic views, and much more.

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Contact the Lund Team for more information and pricing

REO@lundteam.com or call (760) 438-0800

And Zell followed in the interview to predict a turnaround in the broader real estate market : “I think the direction of the real estate market will change in the first part of next year (2009)”.  (video below)

His contrarian prediction has since proven true.   

And Zell’s larger macro-concept of restricted supply articulates clearly the current real estate market in Carlsbad.  A restricted supply of Carlsbad housing halted the downward trend in pricing in 2009.  In 2008, Carlsbad had 12+ months of sellable homes.  Buyers had a number of choices and were demanding steep discounts off already lower prices.  But as fewer homes came onto the market in 2009.  Sellable inventory shrank to 2.5 months of supply.  Buyers would search for months and find the same few “dog” or undesirable properties.  More desirable homes in the $800’s and under had multiple parties willing to bid near full asking price to be the winning bid.  In mid-2009, the ‘bid’ to ‘asking-price’ went from a 96% average in 2008 to 99%.       

The final three months of the 2009 Carlsbad real estate saw an increase in sales and lower market time when compared to the previous year.    Over 206 homes went under contract and/or sold from October to December.   A 36% increase in sales when compared to the same period in 2008.  The average time to sell a home decreased from near 90 days down close to 60 days.  And even as buying activity is comparatively stronger than the previous year, prices have stayed relatively flat.  Conservative appraisals are keeping housing appreciation low and steady.  Buyers should not feel pressured to buy because of low rates or tax credits.  Buyers should take their time and focus on the area they want to live and find a home that fits all of their needs.   

But if you are waiting for prices to decrease further, it could be a long wait.

Housing bears are hoping for a double dip in housing prices.  This is predicated on the sudden release of large amounts of “shadow inventory” from banks and a sharp increase in mortgage rates.  Banks have shown that, although they do have an unknown number of homes sitting vacant and unsold, their intent is not to flood the market with their own property and compete with themselves.  And mortgage rates will rise when federal stimulus ends and the government withdraws from the secondary mortgage market.  But as of January 15^th 2010, the Federal Reserve plans continued stimulus until the broader economy shows clear signs of sustainability and recovery.  And with recovery comes confidence and income.  And according to Zell, since inventory is expected to remain restricted, buyers will reluctantly pay the higher cost associated with increased mortgage rates.

3 bedroom, 2.5 bathroom and approx. 1,538 sq. ft. – Price likely in the low $400s.  We are excited to see!

Call today to join interest list and to schedule a private tour at reo@lundteam.com

Stunning Views To Pacific Ocean

Gourmet Kitchen

Front of 6426 Terraza Portico

The remaining 3% of the bank owned inventory goes to high-end homes in the most desirable areas of the county such as La Jolla and Rancho Santa Fe. The highest priced REO home at 18117 Aliso Canyon is located in Rancho Santa Fe and listed for $5,495,000. One property at 18787 Heritage Drive in Poway is currently on the market for $2,595,000. This same home was sold less than one year ago on 7/2/09 for $3,400,000, equaling a total savings of $805,000 or 23.7% from the July purchase price. In the Bay Collection (community in the Aviara area) of Carlsbad two properties have recently closed near the 1,000,000 mark. 7089 Marsh Wren Street (5 bedroom, 4.5 baths, 3484 square foot home) sold for $1,551,000 in 2005. The next time this property was sold on 6/26/09 as a bank owned foreclosure the price would be $976,000, a 37% savings. Also, in the Aviara area, 1372 Corvidae Street sold for $785,000, other like properties listed as regular sales are priced at $1,029,000 and $1,150,000. Buyers purchasing bank-owned properties can get amazing deals and it needs not to be forgotten that these same deals are also widely available in the luxury home market.

List at $169,900 – great rental or owner unit. Call us ASAP at 760.438.0800 or email reo@lundteam.com as this will not last long. Thanks.

The Villas at New Salem - REO

However, if you have been looking then you know finding and securing a property can be extremely frustrating. Not only is inventory low in North County, but many sellers are turning down higher FHA offers and accepting inferior all cash or conventional financing offers.

Also, FHA financing requires the property to be in good condition. This rules out foreclosures that have been stripped or properties with any missing appliances. Investors are also purchasing low priced homes in poor condition and then fixing them up and putting them back on the market. This is commonly known as “flipping” a property.

These properties are also not options for FHA buyers because FHA financing requires that the property not have transferred ownership within the last 90 days. This is known as the FHA anti-90 day flip rule. All these factors combined make for a frustrating first time home buyer market.

Buyers stick with it because there is light at the end of the tunnel if you have an experienced agent who is on top of the new inventory.

Above is a picture of my very happy clients. They spent 6 months looking for their perfect first home. They had made two previous offers on other properties, but lost out to competing all cash offers. In their search they learned a lot about the different areas they were interested in and decided that for a little bit more money a month they could get a lot more house. It was a learning process and in the end they secured a wonderful detached home in Shadowridge, Vista. They couldn’t be more excited with the end result and the night after escrow closed they got engaged in their new home!

So, if you are a first time home buyer experiencing some heart ache, don’t give up! As long as you have good representation and a little patience you too will find your home sweet home in time to take advantage of the tax credit and today’s great financing opportunities.