Orange, CA

Buying A House In A Down Market Orange California Tip 3

Look out for Motivated Sellers
Some homeowners may want to sell their homes in a hurry. This gives you additional bargaining power. In a situation like this it makes sense to ask if the seller will throw in the lawn mower, furniture or fixtures that you like. You can also ask the seller to cover closing costs in total or in part. Of course, the listing price is always negotiable as well.

Here are a couple of signs that the seller is motivated:

• The home may have been on the market for several months and has undergone several price reductions.
• At the showing the home is empty, which suggests the seller has moved and may be holding two mortgages.

It's very difficult to determine exactly how much leverage you have in any given situation - after all, there are many reasons why someone could be selling. However, your agent can give you a general idea of the seller's motivation. An agent has access to the Multiple Listing Service and can track down the original list price versus the selling price for similar homes in the area. The agent can also find out how long the house has been on the market and determine any price reductions that have occurred.

Many states make deed records and home-sale information available to the general public on the internet. This information will tell you what the seller paid for the home, which, in turn, tells you how much profit the seller stands to make if he or she gets the asking price.

For More information visit www.carlmorales.com

SHORT-SALE YOUR HOME AND SAVE YOUR GREATEST ASSET FROM IMMINENT DAMAGE - ORANGE COUNTY RE/MAX REAL ESTATE -CERTIFIED DISTRESS PROPERTY EXPERT

CALIFORNIA SHORT SALE CDPE® REALTOR®

List you home with Carlos "Carl" Morales at (714) 955-1932

Facing Foreclosure?

Have you missed or about to miss one or more house payments?

LACK OF EQUITY????

Whatever you do DON'T GIVE UP don't ruin your most valuable asset!!!

Are you upside down, having no equity! It does not matter! Save your pride!

We specialize in SHORT SALES where the bank will take a discounted settlement.

We ARE experienced, and this will put you in a much better situation all around.

FREE Consultation. We can only help you.

www.orangecountycashortsale.com

DO YOU HAVE MORE QUESTIONS BUT NOT READY TO CALL YET?
Please review our Short sale Q & A section at

www.orangecountycashortsale.com

We have a great success rate and we do not outsource any of our short sales. All processing is done by an experienced short sale specialist

Benefits include:

**** Your Credit will take lesser damage,

****You will be able to buy a house within 2 years instead of 7.
**** You maybe able to stay in the house longer,
**** Your lender will pay the commission and closings costs of the sale.
**** You sit back, relax and get a new fresh start.

Lic# 01706745

Orange and Orange Park Acres Real Estate Market Report-October 1st, 2009

Orange Active Listings= 255

Lowest priced listing in Orange= $124,900.00
Highest priced listing in Orange= $4,495,000.00

Active Listings Property Type:

• 212 Single Family Residences
• 42 Condos/Townhouses
• 1 Mobile Home
  

Active Listings Sale Type:

• 181 Standard Listings
  
• 13 REO* Listings
• 61 Short Pay** Listings
  

Active Listings Price Range:

• 157 priced at or above $500,000.00
• 98 priced below $500,000.00

Orange Properties in Pending & Back Up Status= 250

Pending & Back Up Status Listing Type:

• 100 Standard Listings
  
• 29 REO* Listings
  
• 121 Short Pay** Listings
  

Orange Properties Sold From 9/1/09-9/30/09= 81

September, 2009 Sales Type:

• 46 Standard Sales
• 20 REO* Sales
• 15 Short Pay** Sales

Lowest Sept '09 Sales Price= $118,000.00
Highest Sept '09 Sales Price= $1,900,000.00

What can you buy in Orange at these prices?:

$118,000.00=

• 1 bed/1 bath condo
  
• 600 s.f.
• Near the 22 fwy, bordering Santa Ana
  

$1,900,000.00=

• 5 bd/5 ba semi custom single family residence
• 5,000 s.f.
• 43,560 s.f. lot
• New construction
  
• Orange Park Acres area in the 92869 zip code
  

*REO= Real Estate Owned. Foreclosed properties currently owned by the lender.
** Short Sale= Properties that are still owned by the borrower. Borrower is attempting to sell the property for less than what is owed to the lender. Lender must approve the reduced pay off amount based on the current market value and borrowers inability to pay the full loan balance.

Orange Ca, First Time Home Buyer Tips- Part 4: All About Sellers

So you are a First Time Home Buyer looking to buy a home In Orange California. You are a unique individual and your search will vary in most respects from others who are looking to buy. There is always one constant though: you will be buying your home from a seller. Although all sellers vary just like buyers vary, there are 4 main types of seller. Knowing the difference between these sellers can help make your search more productive.

First Time Home Buyer Tips- Seller #1- The Short Sale: A seller who has listed their home as a short sale is usually a seller who does not necessarily want to sell but they have no other choice. They have run into hard times. Perhaps there was a divorce, a job loss, or family illness. Whatever their hardship may be, they can no longer afford their mortgage. On top of this, they are underwater with their mortgage/s. This means they owe more on their home than it is worth. Here are some First Time Home Buyer Tips you should know when working with a short sale.

First Time Home Buyer Tip 1: Patience is a virtue. Because the homeowner's lender/s must approve the sale, you will have to be patient and wait for your home during the process. This process can take anywhere from 1-5 months depending on the lender. As a rule of thumb smaller lenders such as Wachovia or SPS are usually quickest at approving the sale. Bigger lenders such as Bank Of America and Indymac usually take the longest. If the home owner has more than one lender, this can also complicate things and cause delays.

First Time Home Buyer Tip 2: Don't let short sales scare you off if you have the time. Most of the time short sales are the best deals. This is not to say that you are going to get the house at a deep discount, but a lot of lenders will usually approve the sale as long as the offer is within 10 % of the value of the home. On top of this, because of the delays, short sales attract less buyers than other types of sales so you will be less likely to get caught up in bidding wars against other buyers.

First Time Home Buyer Tip3: If you are going to make an offer on a short sale, make sure that both agents know what they are doing. Not every Realtor is educated enough to represent a seller or buyer in a short sale transaction. The seller's agent needs to know how to qualify the seller as not every seller will qualify for a short sale. They also must negotiate with the seller's lender to get a good result. Your agent needs to understand short sales so they can ask the listing agent the right questions so she can ensure you are not wasting time on an unqualified short sale.

First Time Home Buyer Tips- Seller #2- The Bank Owned or REO: A bank owned home is another form of distressed sale. This home gets put on the market after a home goes to foreclosure and it is now owned by a bank. Because homeowners who are losing their home often begin to neglect the home, these homes often need some work sometimes just cosmetic and other times they are complete fiver uppers. Here are some First Time Home Buyer Tips to keep in mind when looking at bank owned homes.

First Time Home Buyer Tip 4: Bank owned are very popular. Because every buyer wants a home at a great price, REO homes often gets several if not dozens of offers within a few days. The nicest and best price homes usually get the most offers. Because of bidding wars between buyers, many REO homes end up selling for thousands more than the list price.

First Time Home Buyer Tip5: Bank Owned Homes are usually sold "as is." What you see is what you get. Bank owned also come without seller disclosures which means you, the buyer, will not be given a history of the home and its defects. Remember, the seller, the bank, has never lived in the home so they cannot properly disclose much information on the home. Once you get your offer accepted, a thorough property inspection by a licensed inspector is essential.

First Time Home Buyer Tip 6: You might have to put in a few offers before getting one excepted. Because REO homes get so much attention, you may have to put in some offers before you become a home owner. Be patient and make sure to make your offers according to the most you would be willing to pay for that home in order to have a better chance. Banks are looking for the best offers according to price and term. They favor buyers with the most generous offers, largest down payments, and fastest closes.

First Time Home Buyer Tip7; You will likely have to sign a bank addendum to buy a REO home. When your offer gets chosen, the listing agent will likely provide your agent with a bank addendum for you to agree to. Until you and the bank have agreed to this addendum, the bank usually reserves the right to accept other offers. Make sure you go over the addendum carefully with your agent.

First Time Home Bueyr Tip8: Not all REO homes will qualify for financing. If there are broken windows , a drained pool, or if the home is not in livable condition, than the home might not qualify for financing especially FHA financing. Since REOs are usually sold "as is" you may have to fix these items before you can close your loan.

First Time Home Buyer Tips- Seller #3- The Corporate Owned or Flip Home:These homes usually start off as fixer upper bank owned or short sale homes. These homes are bought by investors or investment groups who then come in and fix up the home to resell. These homes often have granite counter tops, new flooring, and recessed lighting. They are made to be in turn key condition so that you, the buyer, can move in without having to do any work.

First Time Home Buyer Tip8: Your agent should check to make sure the home has value. Lately a big problem has been real estate appraisals. If the home does not appraise for the amount you are buying it for, than your lender will not allow you to buy the home unless you come up with the difference in cash. Because the seller's intention is to profit, there are times that these homes are overpriced. Since these homes are usually the nicest, there is often competition amongst buyers as well which can cause overbidding. If your agent does her homework when making an offer, you can avoid appraisal problems down the road.

First Time Home Buyer Tip 9: FHA financing may not be available. If you are using FHA financing, these flip homes may not qualify due to the FHA flip rule. The seller must own the home for 90 days before FHA will allow financing. Many corporate owners specify in the MLS that they do not accept FHA for this reason. Your agent will be able to advice you on the possibilities of FHA financing for a home.

First Time Home Buyer Tips- Seller #4- The Equity Seller: This is a good old fashion sale. There are no lenders to negotiate with or REO addendum. If you make an offer on this type of home, you and your agent will be working directly with the sellers agent and the home owner. Sometimes repairs and termite work can even be negotiated.

First Time Home Buyer Tip 10: Because there is less red tape in these kinds of sale, they often draw quite a crowd of buyers especially if the home is priced aggressively. If you spot an equity sale that you would like to see, make sure to make an appointment to see it right away before it is sold to someone else.

First Time Home Buyer Tip 11: Beware an equity sale may be a short sale in disguise. Some homeowners are unrealistic and price their homes accordingly. If their agent does not ground them in reality than this "easy" sale can become quite complicated. Remember, the house must appraise for the price you are offering so make sure your agent looks into the houses value and make your offer accordingly.

As I set out to write this post, I didn't realize how long it would become. This does wrap it up for my First Time Home Buyer Tips series. I know buying a home can be overwhelming, but by selecting a good Realtor who specializes in working with First Time Home Buyers, you can rest assured that your agent will help guide you through the process. As you can probably see, there are many things to keep in mind when buying a home, but it is also a great time to buy. Prices are at a level we have not seen for years and rates are near historical lows. If you are a First Time Home Buyer who is looking to buy in Orange or its surrounding areas, please give me a call. I would be honored to help you with any questions you may have.

Click here to Read First Time Home Buyer Tips- Part 3: Buyer Do and Don't

Buying A House In A Down Market Orange California Tip 2

Tip No.2 - Get Prepared, Orginized and Planned.

Keep in mind, you are probably not the only bargain hunter looking to steal a good deal out there. You may have an edge on the sellers, but another buyer could snap up your great deal if you delay the buying process or if you try to knock down the seller's too much. To make sure that you're able to pounce on a deal at a moment's notice, it makes sense to get pre-approved for a mortgage and to have an attorney on retainer to handle the closing paperwork, in California it is very common to have Escrow companies to handle this costs and paperwork. (To learn more, see Pre-Qualifies Vs. Pre-Approved - What's The Difference? and The Benefits Of Using A Real Estate Attorney.)

It also makes sense to line up a home inspector and an insurance agent. These professionals provide valuable information and let a buyer know early on in the process, during the attorney/escrow review period, what items might need repair as well as what the home will cost to insure.

Do all this investigation with each pertinent party, do not rely only on your realtor, even though we have the duty to assist you and provide you with a full disclosure of the property conditions and neighborhood, you are the investor and if you have a particular concern about neighborhood, streets, house, etc. do hesitate to conact the pertinent entity, we can help you to get in contact once you let us know what you want to find out.

For more information I invite you to visit my website www.carlmorales.com or send me an email at cmorales@ochomes-estates.net you can always call me or text me at 714-955-1932

Thank you all have a great day and don't forget to comback tomorrow for the next tip.

Carlos

Orange, Ca First Time Home Buyer Tips: Part 2- How to Choose your Lender

When it comes to buying your first home, there are many choices you have to make. Making the right choice can mean the difference between a happy first time home buyer and disappointment. Chosing your lender and loan officer is a very important decision you do not want to go wrong on.

First Time Home Buyer tip 1: First things first, secure financing. Oh I know talking about finances is no where as much fun as going to look at homes but it needs to be the first thing you do. Sure you can start by choosing your agent as they can be a great resource in finding your lender, but before you start looking at homes you need to know what you qualify for.

First Time Home Buyer tip2: Chose your lender and loan officer wisely. I am guilty of this myself, but I quickly learned so learn from my mistakes and don't make these mistakes yourself. As a Realtor in today's market it goes without saying that a buyer should be approved for a loan before starting their home search. What I was doing is recommending that my buyer's walk into their local Bank of America, Wells Fargo, or Chase and get pre approved first. This way I know how much they qualify for and I would have an approval letter ready for when it was time to make offers. Sounds like I did all I had to do, right? Wrong. Lenders are handing out approval letters like candy. What they do not hand out like candy is loans. Remember, just because a loan officer works for a big bank doesn't mean they are qualified to do your loan. I learned that lesson the hard way.

First Time Home Buyer tip 3: Get referrals when it comes to choosing a loan officer: If you have already chosen your real estate agent, they can be a great source for a loan officer referral. After all besides yourself, your agent is the 2nd most dedicated to getting your home purchase closed. If you have not chosen an agent or if they do not have a referral for you, inquire with friends and family. If someone you know has purchased a home recently, inquire about their experience with their loan officer. If they were satisfied, give that loan officer a call and see if you would feel comfortable with them as well.

First Time Home Buyer tip 4: Do not rule out mortgage brokers. Because many direct lenders have systems in place, loan officers who work for these banks often have less control over their files than a mortgage broker has. It is sometimes a misconception that brokers charge more than a direct lender. Because a broker can shop rates, the extra cost to use a broker can often be absorbed by the lower rate they are able to secure for you.

First Time Home Buyer tip 5: Use a full time loan officer. Same as a Realtor, doing home loans is a full time job. You want your loan officer to be available for you and dedicated to getting your loan done in a timely manner.

First Time Home Buyer tip 6: Ask the right questions. When interviewing a loan officer for the job of securing you a home loan make sure to ask questions about their experience and qualifications. If you are doing an FHA loan for instance, ask if they can process these type of loans and how many FHA loans they have done. Ask them how long they have been in business. Do they do loans full time? What are their office hours? What is the average time it takes them to close a home loan? This last one is important as many sellers now charge fees for late closings and can even cancel the sale if you are not able to close in a timely manner.

First Time Home Buyer tip 7: Bring in a full package when being pre approved for a loan. This is probably the most important. Yes it is extra work but get it done. Bring in all pay stubs for the last month, last two month bank statements, last two years w2 and tax returns, a copy of drivers license and social security card, and get your credit ran. You want to make sure your loan officer examines everything upfront. If all your loan officer asks for is a recent pay stub and a credit report, run. The last thing you want is a preapproval letter that doesn't really mean you can get a home loan. Some loan officers are guilty of taking any prospect and seeing what sticks. You do not want a loan officer who practices this way. You want to be certain you qualify. Ask your loan officer if she sees any potential problems. If your loan officer spots potential problems that can be addressed, get these items fixed now rather than wait until you are in escrow on a home.

First Time Home Buyer tip8: Get payment and cost estimates. Interest rates fluctuate but this should not stop your loan officer from giving you an estimate based on today's rates. For one, you need to know how much money you will need to buy a home. Also, when you get pre approved your loan officer will let you know how much home you qualify to purchase but payment is also a factor. Let's say, for instance, you are pre qualified for $300,000 but you feel comfortable with a $2000 a month payment. Your loan officer can go over different scenarios with you so you have a better idea about roughly how much home you can buy and still stay within a payment you feel comfortable with. Now remember to give this information to your Realtor so she can adjust your home search accordingly.

Next time I will go over Orange, Ca, First Time Home Buyer Tips: Part 3 Do and Don't. Many times First Time Home Buyers are not properly informed on what they should and what they should not do as they search for their first home and during escrow after they find their home. A wrong decision can mean a failed transaction... next blog will go over everything you need to know on this topic...

If you are a first time home buyer and need help in finding a great loan officer or Realtor or if you just have questions, please feel free to email me or call.

Click here to read Orange, Ca First Time Home Buyer Tips Part 1: How to Choose your Realtor

Click here to read First Time Home Buyer Tips- Part 3: Buyers Do and Don't