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Torrance, CA

SO you want to Buy a house in 2009-Weekly Updates

Mary Thomas PV,RB,MB,Torrance,Pas, Arc,SM REALTOR®*: Real Estate Agent in Rancho Palos Verdes, CA

Real Estate Tips of the Week

If you are looking to buy a home in the south bay in 2009 there are several things you should know.

1. Lenders are changing the requirements constantly.

2. Pitfalls with FHA-You can go FHA with a small down payment 3-5% as of today that could change tomorrow.So if you have a small down payment or are going FHA it will weaken your chances of being accepted in multiple offers.Many 20-50% down buyers are now bidding against you. Which can be discouraging but it is a fact that first time buyers need to know so they won't be disappointed when in multiple offers.

3.Best Homes to buy in this market-Trust or Probate Homes are the best homes. Most homes that are priced well and are in good condition and location will have multiple offers on them even in this market. I sold one probate that was below market and great condition, Trust even put on a new roof and it was not leaking but the catch-We had 13 offers against us and only 4 were picked for the counter offer. All 4 had at least 30% down and my client was picked with 40% down over a higher offer of $20,000.00 more because we had better terms.
So in this market , price is not always the object if handled by Courts and money is going to a charity etc...

4. Short Sales are not short. Lenders are not motivated for making quick decisions. If you are the first offer on a short sale that has not been sent to the bank for bank approval plan on waiting at least 2 months. Which normally causing the buyer to get cold feet and they no longer want the property by the time the bank gets back to them.Just like my bank teller asked today- "Have you ever really seen a short sale that was short"

This short sale joke could be the new line of the short sales in 2009.

5. If you are the 2nd offer on a short sale the bank will normally get back to you within a week and you have a good chance of making it work.

Stay tuned for next week when I will have 5 more real estate tips for this market...including lenders that are still making loans to self employed business owners,and lenders that are still qualifying with stated income..and what they need you to do to qualify....

sold

Torrance CA Real Estate Market Update - May 2009

Krystyna Baty, REALTOR®, M.S. Torrance Redondo Beach & Greater South Bay CA: Real Estate Agent in Torrance, CA

The Torrance average sales price decreased 10.1 percent in May 2009 compared to May 2008, bringing the average price to $514,395. The number of sales increased to 96 closed sales a 23% increase in volume! Meanwhile, the average market time decreased from 69 days a year ago to 68 days last month..

Torrance Sold
Listings
Average
Sales Price
Average
DOM
May 2009 96 $514,395 68
May 2008 78 $566,442 69

*All stats are compiled from the Multi Regional Multiple Listing Service. Information is deemed reliable but not guaranteed.

Increased sales in Torrance reflect a stabilization of the South Bay real estate market as home buyers respond to increased affordability and more moderate prices.

Although avg April '09 - $458,037, May '09 - $514,395 price in May was lower than a year ago, it is higher than last month by 12.3%. April average price was at $458,037. It's difficult to say if this is a trend because overall prices in Torrance and in the Greater South Bay area are skewed downward. This is due to the fact that the number of lower priced bank owned properties dominate high end properties. High end inventories are very low and so are sales in prime, high priced areas.

For more information on Torrance, beach cities and greater South Bay real estate, please visit http://www.ISellSouthBay.com or http://www.TorranceRealEstateOnline.com

Wordless Wednesdays - Combination Burrito

Lisa Marie Flenoury: Real Estate Agent in Torrance, CA

Yummie Combination Burrito, Westfield Shopping Center SoCal Mall Food Court. MMMmmmmmmmm

What a great treat after a day of prospecting

Lisa Marie Flenoury, Broker Associate Century 21 Union Realty Co., Inc. 23900 Hawthorne Boulevard, Suite 100, Torrance, California 90503 (310) 766-0964

Serving Southern California South Bay and Beach Citie Residential, Commercial, and Property Management

Walteria Real Estate Market Update - May '09 vs. May '07

Krystyna Baty, REALTOR®, M.S. Torrance Redondo Beach & Greater South Bay CA: Real Estate Agent in Torrance, CA

Median sold price in Walteria in May '09 was down by 25% compared with May 2007.

The number of sold properties in Walteria was up 33% while the average month supply is drastically down by 32%. Inventory peaked in January 2008 and it is very low at this time. This is mainlyt a result of increased sales in the last few months - for details see report posted on http://www.WalteriaProperties.com

For more up-to-date information on Torrance-Walteria & Greater South Bay real estate please call me at 310.918-5027 or visit http://www.WalteriaProperties.com

NEW FEDERAL LAW AFFECTING DISTRESSED PROPERTIES

Mary Thomas PV,RB,MB,Torrance,Pas, Arc,SM REALTOR®*: Real Estate Agent in Rancho Palos Verdes, CA

New law the Helping Families Save Their Homes Act of 2009 to help homeowners and lenders avoid foreclosure, as per a article I recieved from the California Association of Realtors the New Laws were not really helping since only one family qualifed for this program.

Now with an inducement to the short pay lender to share a portion of the equity,the government thinks this may work...All so the Government is offering monetary incducement to participating servicers of the existing loans and originators of the FHA refinance.

New Law also allows with a 90day notice the month to month has to vacate in 90 days but if a lease holder has a 90 day extension they can stay until the end of their lease term.

There is also $500 million to be granted to federal agencies to chase down the fraud perpetrators, which will provide more goverment jobs potentially.

With all this money being thrown into the package, let's see how this will help California Distressed Homeowners..

Here is the article I received from Calif. Association of Realtors:

The Helping Families Save Their Homes Act of 2009 contains various new laws to address the national foreclosure crisis. Major provisions that may affect California REALTORS® and your clients include the following:

  • HOPE FOR HOMEOWNERS (H4H) REVAMPED: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans. Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program's first seven months, it only helped one family stay in its home. The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value. If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner's equity. Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance. Millionaire borrowers (with net worth over $1 million) are now excluded from the program. HUD will establish the requirements and standards to implement the H4H program as revised.

  • LONGER STAY FOR TENANTS OF FORECLOSED HOMES: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.

  • NOTIFICATION OF TRANSFER OF MORTGAGE LOANS: The Truth in Lending Act now requires a lender to whom a mortgage loan is sold or otherwise transferred to notify the borrower in writing of such transfer within 30 days. The notice must include the new lender's identity, address, telephone number, authorized representative's contact information, and other relevant information. This measure should help alleviate the problem borrowers often face in determining who owns their mortgage loans.

Other provisions of the Helping Families Save Their Homes Act include a 4-year extension of the $250,000 FDIC deposit insurance to December 31, 2013, protection for loan servicers who establish qualified loss mitigation plans from liability for an alleged breach of duty to maximize mortgage values for their investors, $130 million for foreclosure prevention counseling and education, and $2.2 billion to strengthen homeless programs.

President Obama has also signed into law the Fraud Enforcement and Recovery Act (FERA) which authorizes the Department of Justice to prosecute mortgage fraud crimes against private mortgage brokers and companies that previously were not regulated by the federal government. FERA also earmarks almost $500 million for federal enforcement agencies to investigate and prosecute mortgage fraud and other fraud crimes

Do you think this will work?

What is your opinion? foreclosure?