Picfair Village/Faircrest Heights Home Sales Update - October 2010

Hi All-

Here is the full list of homes sold and new on market for Oct-Nov 2010 in Picfair Village/Faircrest Heights:

New Listings
1963 S. Crescent Heights Blvd - 3BR/2BA $729,000
1839 S. Crescent Heights Blvd - 3BR/2BA $599,000
5995 Saturn St - 2BR/1BA - $799,000
6101 Pickford Place - 2BR/1BA - $425,000
1806 S. Orange Grove - 4BR/3BA - $979,000

In Escrow
1917 Chariton St - 3BR/1.5BA - $499,000
1501 Stearns Drive - 3BR/2BA - $800,000

SOLD
1521 S. Curson Ave - 2BR/1BA - $419,000
5984 Saturn St - 3BR/2BA - $727,000
1451 S. Burnside Ave - 2BR/1BA - $565,000


For further details about any of these properties or for a free market evaluation of your own home, feel free to call me anytime on my cell at 310-228-8856.

-Jerry

Despite Freezes, US Still Racking Up Foreclosures

"Foreclosures decline, but more probably are out there"

11:42 PM PDT on Wednesday, October 13, 2010

By JACK KATZANEK
The Press-Enterprise

Foreclosure-related activity in Inland Southern California is still declining from where it was a year ago, a report released Wednesday found, but analysts say more distressed housing will probably hit the market in the coming months.

There were 7,454 homes in some phase of the foreclosure process in Riverside County in September and 6,244 in San Bernardino County, according to a report from RealtyTrac, an Irvine-based online marketer of foreclosure properties.

That's 16.37 percent fewer than September 2009.

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Foreclosure actions did increase 6.6 percent from August of this year, RealtyTrac reported. One in every 103 homes was somewhere in the foreclosure process in Riverside County, and one in every 110 in San Bernardino County.

Actions that include notices of default, trustee sales and repossessions were down slightly in the two Inland counties -- less than 1 percent -- in the third quarter of the year from the second but down more than 25 percent from the third quarter of 2009.

September was the ninth straight month Inland Southern California has seen fewer foreclosure-related actions than the same month in 2009 and the 10th consecutive month statewide, said RealtyTrac analyst Daren Blomquist.

Part of that is because lenders are more inclined to work with homeowners to devise some sort of workout program, including short sales, which allow borrowers to sell the house for a price that's greater than what they owe, Blomquist said.

Also, many of the banks holding mortgages of homeowners in trouble are not rushing to put foreclosed homes up for sale, meaning many more distressed properties could eventually hit the market. This leads Blomquist to call the decline "deceptive."

"It is good these numbers are going down, but California and the Inland Empire are not out of the woods yet," Blomquist said.

"There are still a lot of distressed properties out there to deal with."

Government officials are currently sorting out whether banks followed the proper procedures when foreclosing on hundreds of thousands of properties across the country, and that might slow foreclosure processes in the fourth quarter.

Blomquist said a fresh flood could happen next year.

Rich Simonin, owner of Westco Realtors in Riverside, agreed that there are a lot more properties that might be foreclosed on and hit the Inland sales market. But he said the banks are hesitant to put these properties on the market, and he said he's not sure that's the best strategy.

"The banks will release those homes in drips, and not in a flood," Simonin said. "I think that just extends the foreclosure issue in our market. It would be better for us if we can sell these homes. Then we can move on."

Inland homeowners received more than 15,000 default notices -- the first phase of the foreclosure process -- in the third quarter.

These notices are usually sent when a person is 60 or 90 days late with a payment.

In the second quarter there were fewer than 13,000 default notices, and Chapman University economist Esmael Adibi said that suggests more homeowners are having trouble making ends meet.

Adibi said that a true recovery in the housing market happens when prices hit bottom, and the distortion caused by an investigation of paperwork issues could delay that.

But he said he agrees with the banks' strategy of holding back on foreclosures.

"They don't want to flood the market," Adibi said.

"That would be bad for all the other homeowners."

Source: The Press Enterprise

CNN MONEY: "The Best Moves for Home Buyers and Sellers"

Los Angeles Real Estate Advice: Plenty of forces, from overly cautious lenders to inaccurate appraisals, are wrecking real estate deals right now. But one of the biggest roadblocks to getting a house sold these days is the disconnect between buyers and sellers.

In general, sellers have gotten more realistic in pricing their homes than they were right after the housing bubble burst, but agents say that many still don’t grasp how much they must concede to close a deal. And buyers are still spraying lowball offers around in hopes that sellers will be desperate enough to bite.

Take such unreasonable expectations, multiply by two, and what do you get? “A standoff,” says Glenn Kelman, CEO of real estate brokerage Redfin.

With the busy summer home-sale season drawing to a close, there’s little time to waste. Whether you’re trying to unload your place or land a new one, follow these dos and don’ts to negotiate the best deal — fast.

If you’re buying

Don’t say: “I’ll pay 85% of your asking price and not a penny more.”

Instead: Look for homes that are fairly priced and make a reasonable offer. “Coming in about 10% below list is a good starting place for negotiations now,” says Denver real estate broker Jeff Fogler. Yes, you have the upper hand in most markets, but the average homebuyer is paying only 2.7% below list price (see the chart). Set your expectations accordingly. You can always ask if the seller is willing to bridge a price gap in other ways — for example, by picking up your closing costs (which can run $7,500 on a $300,000 house).

Don’t say: “I haven’t put my own place on the market yet.”

Instead: List your current home before you start shopping seriously for the next one. Because it takes almost three months to move a house these days, sellers are loath to write home-sales contingencies into purchase contracts. You’ll have far more leverage if you’ve gotten rid of your house before you start negotiating: Sellers know there’s less chance of the deal falling apart. (Prequalifying for a mortgage helps too.) What’s more, you’ll know exactly how much money you can put into your new digs.

Don’t say: “This is my dream house.”

Instead: Stop imagining the great parties you’ll throw there and gird yourself to walk away if the seller won’t make reasonable concessions. Your ability to abandon negotiations is your most powerful bargaining chip. Given that plenty of other homes are on the market now, finding another place to love shouldn’t be too hard. You might let the seller know that. Nicely.

If you’re selling

Don’t say: “You’re offering how much? Forget you!”

Instead: When bidders lob low-balls at you, thank them for their interest — and ask that they come back with earnest offers. “If you become offended, enraged, or unreasonable, you’ve blown any chance at negotiation,” says Warwick, R.I., real estate agent Ron Phipps. These days many buyers are just testing you to see how big a discount they can get. Point the bidder to comparable recent sales that support your list price. (Received several super-low offers? Check the comps to make sure your price isn’t too high.)

Don’t say: “I didn’t know the deck was rotting.”

Instead: Pay a few hundred dollars to get your house inspected before you put it on the market. Then arrange to make any necessary repairs yourself. (In most states the law requires you to disclose to potential buyers any defects of which you’re aware.) “Taking care of any inspection issues upfront helps sellers limit the points that buyers can negotiate on,” says Pat Lashinsky, CEO of the national brokerage ZipRealty.

Don’t say: “It might take us a while to move out.”

Instead: Make sure to tell buyers — especially those who might have children starting school this month — that you’re willing to scram pronto, if possible. That will help you stand out from any short sales in your area, which may have lower list prices but can take months to close. “If the buyers have a strict time limit, they’re going to pay more money to get into a house quickly,” says Ellen Klein, a realtor in Rockaway, N.J. More money plus more speed: That’s what it’s all about.

Source: CNNMoney.com

Bank-owned Inventory Shrinks in California

More borrowers negotiating loan mods, short sales

By Inman News, Thursday, August 12, 2010.

Inman News

Inventories of bank-owned properties in California registered double-digit declines in July compared to a year ago, according to the latest numbers from data aggregator ForeclosureRadar.

Lenders took back 11,934 homes in July, an 18 percent decline from a year ago. That left them with an estimated 81,536 homes in their "real estate owned," or REO, inventories in July -- 19 percent less than a year ago.

About three times that many homes are still working their way through the foreclosure process in California. But Sean O'Toole, ForeclosureRadar's founder and CEO, said he sees "no evidence of a foreclosure wave anytime soon."

Lenders and government intervention continue to delay foreclosures, O'Toole said. Although that doesn't provide a long-term solution for homeowners who owe more than their homes are worth, it does push back the day of reckoning.

"We continue to hear a lot of concern about a double dip for housing, combined with increasing concern that another wave of foreclosures is coming as well," O'Toole said. "While there is clearly a huge 'shadow inventory' of homes that are delinquent in their mortgage payments, those homes still have to go through the entire foreclosure process before hitting the market as REO listings."

In California, the foreclosure process takes a minimum of 120 days, and the average is currently about 226 days, up 20 percent from a year ago, O'Toole said. After repossessing a home, it takes lenders another 269 days on average to resell it, compared with 238 days a year ago, he said.

Foreclosure cancellations were up 75 percent in July from a year ago, to 18,942, as more borrowers were able to negotiate loan modifications or short sales. Lenders are also demonstrating an increasing willingness to sell properties on the courthouse steps instead of repossessing them.

While O'Toole said he's not ruling out a double dip for housing, "at least in California it certainly won't be caused by an excess supply of foreclosures anytime soon."

California and other "sand states" that experienced rapid price appreciation during the boom -- including Florida, Arizona and Nevada -- could lead a housing recovery, because they saw foreclosures surge before Rust Belt states like Michigan, Illinois and Ohio that are now being hit hard by both unemployment and foreclosures.

The latest national numbers from RealtyTrac, released today, showed bank repossessions at near record levels in July, even as the number of homes entering the foreclosure process declines.

ForeclosureRadar estimates that in California, 25,148 homes were subjected to a notice of default in July -- down 47 percent from a year ago.

That left the inventory of what O'Toole calls "preforeclosure homes" -- properties that have been hit with a notice of default filing, but not yet scheduled for auction -- at 125,223, down 29 percent from a year ago.

Auction notices were served on 28,310 homes, a 30 percent decline from a year ago. That brought the total number of homes scheduled for auction in California at the end of July to 125,559 -- roughly the same number as a year ago.

Even after a home has been scheduled for auction, the sale can still be canceled if the owner is able to negotiate a loan modification or short sale.

If a home does make it all the way to auction, the bank will place the opening bid. If a third party puts in a higher bid, the bank will sell them the house. If not, the house goes back to the bank and is added to its REO inventory.

Although banks were still taking back three out of four properties that went to auction in July, auction sales to third parties were up 29 percent from a year ago, to 3,483. Banks elected to repossess 11,934 homes, down 18 percent from a year ago.

When the bank took back properties, its opening bid was 26 percent less than the outstanding loan amount, on average, but 21 percent higher than estimated market value.

When properties were auctioned to third-party investors, the bid amount was typically 39 percent less than the loan amount, and 22 percent below market value.

Investors who plan to resell those properties will often have to deal with a home's current occupant, past-due property taxes, outstanding liens, repairs, and resale expenses including commissions to real estate brokers.

Competition between bidders was fiercest in Orange County, with discounts from market value of only 15 percent. The best deals were in California's Central Valley, where investors averaged discounts of 30 percent in Fresno County and 29 percent in Kern County.

But lenders repossessed eight out of 10 homes that went to auction in Fresno and Kern counties in July rather than sell them on the courthouse steps, completing only 190 third-party sales -- 95 in each county.

Sales to third parties were still up 116 percent in Fresno County compared to a year ago, while bank repossessions were essentially flat at 396 homes. In Kern County, third-party sales were up 36 percent while bank repossessions declined 4 percent, to 500 homes.

Other hot spots for auction sales in July included Los Angeles County, where 643 homes were sold to investors and other third parties, a 50 percent increase from a year ago. Bank repossessions were down 28 percent, to 1,847.

Riverside County also saw double-digit growth in July, with third-party sales up 28 percent from a year ago to 428 homes. As was the case in Riverside County, bank repossessions were down from a year ago, falling 27 percent to 1,434.

Source: Inman News