Frederic A Din ~ Imperial Valley REALTOR

BREAKING NEWS! State of California offers first time buyers a tax credit incentive of up to $10,000 on homes purchased between May 1, 2010 and December 31, 2010 or after December 31, 2010 through August 31, 2011. See the article below for full details.

Everyday buyers contact me about homes on the market or they’ll find a listing online. Invariably just about every discussion turns to the question, hey Frederic “is the home a short sale?”. As your Imperial Valley Housing Specialist I am honored to help you make the important decision of becoming a home buyer and turning you into a home owner.

I usually reply with a question or two to better understand what the buyers are searching for, to help them find and identify the right home to meet their needs with regard to location, amenities and price (LAP).

STOP listening your your family, friends, and co-workers about buying short sales, they are great homes with great prices and are typically in better condition than their bank owned cousins.



STOP listening to mis-informed real estate agents who steer you away from looking at or placing offers on short sales “because they take too long” or some other lame excuse. If you get to the truth of the matter, the agents who avoid showing short sales to you are more than likely the same agents who do not understand how short sales work nor are they interested in anything having to do with them.

I could go on and on about mis-informed or unprofessional real estate agents, however I will keep this article on task and focused on how Short Sales Benefits Buyers. How?

Speaking of LAP, let me discuss the importance of each aspect before I answer the buyers question about the home being a short sale or not.

Location, location, location
You’ve heard of the real estate adage, Location, Location, Location, right? It’s true, location is a vitally important part of the home buying process and knowing where to buy can also pay huge dividends in the future when the buyer turns into a home seller.

Where do you work? Where do your children go to school? How close or far away, do you want to be from your family? There are dozens of questions that go along with this question, but the most important part is where do you want to live?

Amenities
Once location is narrowed down, then we can focus and concentrate on the next question, what amenities are most important to you? I may ask about their current living arrangements, what they like the best and the least of their home or apartment.

Every buyer is different and places higher priorities to certain amenities, such as a pool, fireplace, patio cover, garden tub or shower stall, etc. One story or two story, corner lot versus a cul-de-sac location or middle of the street. Upstairs laundry or downstairs, east west orientation versus north south. Across the street from a park, school, or commercial business can offer both pros and cons, however only a prospective homebuyer can make these decisions since they impact everyone differently and are a matter personal choice.



I am not discussing flooring or paint color, since they are not amenities and can be changed out easily and generally fairly inexpensive. Matter of fact, most homes will need a new interior paint job and replacing the carpet or tile is almost a must for many of the homes I see. While these items are important, they are not amenities and are not considered in my search for homes for buyers.

Price
Knowing your pre-approval sale price limit or range is a must into todays home buying arena, as any bank owned home, short sale, or market sale in Imperial Valley with require a pre-approval when submitting an offer to purchase a home. An offer presented without a pre-approval or prequal is typically considered incomplete and will be overlooked and rejected before getting presented to the seller.

Cash offers need to provide proof of funds to be used when buying the home. A copy of a current account bank statement, proof of funds letter, or investment statement showing the amount of the intended sales price plus any usual and customary closing cost expenses should be included.

Once the LAP items are identified, you, the home buyer will be able to make an informed purchase decision with confidence using the assistance of your realtor as they search for homes on the market or watch the market for those certain to meet your needs.

“But Frederic, short sales take too long, I want to buy a home now, I don’t want to wait.”

What are you going to buy when most of the homes listed for sale are short sales? The bank owned and REO properties in Imperial Valley are at a premium for home buyers, since most bank owned properties can close within 30-60 days after the bank accepts the offer.

I see bank owned homes turn into bidding war competition with as many as 10 buyers, all trying to get the same home. Keep in mind that only one party will end up with the selected bid, meaning the other nice people will be stuck waiting for the next bank owned property that meets their LAP needs.

Buyers will sometimes turn to desperation and expand their LAP needs and settle for something else than the items important to them so they can make an offer on anything and perhaps buy any home. The problem with that thinking is it often only benefits the seller of the property and not the buyer, as the seller can sense the desperation in the buyers request.

I agree, every home will have some items that a would be home buyer needs to overlook, or they may need to sacrifice some amenities, location, or price in order to buy a home, however do not let those aspects of the process alone cloud your judgement.

So yes Mr and Mrs home buyer, based on your home buying needs, location, amenities and price range, the home in question fits your needs all the way around. I’ll put together the offer of $xxx and can meet you to sign the offer, collect your deposit money and pre-approval letter, is Tuesday at 4pm or Wednesday at 6pm better for you to go over the offer details?

My point? Once a home buyer has truly identified their home buying needs using the LAP process, and once the home buyer understands the short sale process, they can move forward and look at all available homes on the market that fit their needs as opposed to only as few select homes in a wide range of prices.

As I mentioned earlier in the article, Governor Arnold Schwarzenegger signed AB183 into law last Thursday, you can more about the home buyer tax credit here NEW California Home Buyer Tax Credit”

Are you looking to buy home? Let me help you manage the home buying process regardless of the type of sale so you can take advantage of the tax credits the State of California are offering Imperial Valley real estate home buyers this year.

Three Month Foreclosure Forecast for Imperial Valley. By Frederic Din, REALTOR(r).

As a home buyer or investor, you will find the following information useful as you take advantage in snapping up some great real estate opportunities in the Imperial Valley real estate market.

During the last week, I have reviewed a variety of Imperial Valley real estate slated with some type of foreclosure activity attached, whether at the pre-foreclosure stage (ie. short sales) and such as the notice of default stage, the foreclosure auction stage, where homes are auctioned at the Imperial County court house steps, or at the REO bank owned property stage, properties that have been foreclosed on by the bank and are now owned by the bank.

Some of these properties may be listed for sale locally and on the Imperial Valley MLS, however there is a growing amount of inventory, some of it is shadow inventory while other properties remain in limbo.

I wrote a series of mini-articles regarding individual city forecasts previously and this article focuses on Imperial County as a whole, forecasting foreclosures for Imperial Valley over the next three months.

During the next three months foreclosures in the Imperial Valley are expected to continue at the pace of approximately ten to fifteen properties per day in all foreclosure related categories, including pre-foreclosures, trustee sales, and bank owned properties.

With current inventory down to some of the lowest levels in recent months, some areas in the Imperial Valley have a limited number of bank owned and regular market sale properties have been subject to overbidding as buyers are moving off the fence as they aggressively bid over asking price to beat out their competition in order to secure some of the best real estate deals Imperial Valley has experienced since the beginning of the year 2000.

According to preliminary information researched by Frederic Din, a local REALTOR(r) with Exit Stepping Stone Realty estimates approximately 1,218 properties over the next 90 days are expected to enter the Imperial Valley CA real estate market.

“About 25% of these properties are bank owned homes, which have already been taken back by the bank and are in some stage of being released into the market place through a real estate agent or perhaps they’re available through an online bidding process”, says Frederic. “The oldest of these recorded bank owned properties is early November 2009 and only a fraction of these homes are listed on the market at this time, meaning the percentage of bank owned properties could potentially increase dramatically”, continues Frederic.

The remaining 75% of foreclosures are at various stages of default and auction status, meaning there is a possibility of the homeowner saving their home by obtaining a loan modification or perhaps selling their home through a short sale. A small fraction of these properties may have their foreclosure status cancelled altogether should the homeowner be able to bring their past due payments current.

What does this information mean to home buyers? Excellent opportunities to buy real estate in Imperial Valley, CA at prices up to 50% less than they were at the peak of the real estate boom.



The Federal Government is also offering would be homebuyers a cash incentive in terms of a homeowner tax credit. The American Recovery and Reinvestment Act of 2009 increased the previous tax credit to $8,000.

The First Time Home Buyers Credit was extended last year through April 30, 2010 for first time home buyers up to $8,000. Current “long time resident” homeowners may be eligible for a tax credit up to $6,500.00. Both tax credit have income requirements to meet in order to qualify.

The tax credit ends for home buyers who are under contract by April 30, 2010 and who close the transaction no later than June 30, 2010, however homebuyers should not purchase a home simply because of the tax credit but they should realize that home prices are at some of their lowest levels in nearly 10 years (see article “Are We Back at Year 2000 Sales Prices” http://blog.imperialvalleyreo.com/?p=418.

If you’ve been thinking of about buying a home, now is the time to make sure your loan approval is in place to make sure you take advantage of low fixed interest rate financing for the long term.

Mortgage banking experts are predicting home loan rates to rise at least 1% by this same time next year, making it more important than ever to talk to the real estate professional who wrote this article or call Frederic to learn more. View homes for sale by going to http://imperialvalleyreo.com.

If you liked this article, please forward it to those you know or comment below. Thank you.

Are We Back at Year 2000 Housing Prices in the Imperial Valley?

Recently Frederic Din, REALTOR® and “Your Imperial Valley Housing Specialist” reviewed that average and median housing sale prices were down 25.7% in 2009 from 2008 housing sale prices for the areas of Brawley 92227, Calexico 92231, Calipatria 92233, El Centro 92243, Heber 92249, Holtville 92250, Imperial 92251, Seeley 92273, Westmorland 92281, and other surrounding areas. You can search homes for sale by clicking on the city links above for the areas you want to buy.

These stark facts indicate further decline in median housing sales prices in 2010 even though real estate inventory seems to be dropping. There are concerns in the industry, both locally and nationally of shadow inventory (homes foreclosed but not yet on the market for sale), negative equity (owing more on your mortgage the value of your home), and the ability to move loan modifications forward will all have an impact on further housing sales price declines.

“The good news is for home buyers, whether you’re a first timer, wanting to trade-up, or an investor, current home prices in Imperial County are certainly attractive”, says Frederic.

What makes this year particularly more attractive than the possibility of year 2000 sales prices is low rate fixed term mortgage financing. Home loan rates are often seen in the upper 4% range, while average mortgages rates are hovering around 5.25% for a 30 year FHA mortgage with as little as ½% down.

Contrast these rates to the year 2000 where they were about 3% higher in the 8% range for those with excellent credit histories. FHA loans were available at the same rates however FHA loan limits were stuck just around $100,000, while median prices were slightly higher than that at the time.

“All this means is 2010 is going to be very attractive to buyers due to excellent deals with low home prices and low fixed rate mortgage financing, leading to a more stable and affordable housing market which is on the way to recovery here in the Imperial County”, says Frederic Din.

Another factor that makes 2010 a better home buying year than 2000 is the types of properties on the market that were simply not available 10 years ago. “Scores of homes were built during a period of years from 2003-2007 which were simply not around in the year 2000, these homes include some very nice entry level floor plans and some elegant luxury type housing products there weren’t around then”, says Frederic.

So just how more affordable are homes in today’s low fixed rate mortgage market? For example, in the year 2000 a home with a loan amount of $130,000 at 8% for 30 years with taxes and insurance would be about $1104.00 per month, while today a home with a loan amount of $130,000 at 5% for 30 years with taxes and insurance would be under $850.00 per month, a difference of $250.00 per month.

Let me put this in perspective, for the same monthly payment you were able buy a home in year 2000, in today’s low rate market, with the same monthly payment you could obtain a home loan of $170,000, meaning a newer home and larger home of your choice. Remember, these interest rates are examples and can vary depending on your situation, please consult with your loan officer or ask me for a recommendation to help you get started on making 2010 your year to be a homeowner.

Although high unemployment typically dominates the news regarding Imperial County, the El Centro, California MSA is the statistical area to watch, currently at 29.2%. Jobs which unemployment runs the highest is within the unskilled labor markets, are low wage and often times entry level positions. There is growth in the higher skilled and trained positions which provide higher paying jobs will continue to offer those moving to the Imperial Valley for industries such as renewal energy, geothermal, business, law enforcement, education and government positions just to name a few.

What do jobs and unemployment have to do with the housing market and home sales prices? Frederic Din says “Everything!” A vibrant jobs market bolsters, grows, and sustains the housing market and home value appreciation in a very big way”, Frederic continues. “Plainly put, a lack of jobs causes real estate values to become depressed and decline.”

While the Imperial Valley is far from a full economic recovery at this time, great strides are being made to promote the Valley, encourage investment, and move this great area forward faster. Green technologies, renewable energy here in the Imperial Valley are the forefront of being a highly desirable and sought after industry locally as new geothermal, solar energy farms, and wind farm projects are slated on city council meetings on a regular basis.

Growth in the renewable energy sector certainly looks promising and will bring a much needed economic and employment boost to the Imperial Valley jobs market as well the housing market will benefit greatly from these advancements, which ultimately has an effect on housing sales prices rising.

If you’re new to the Imperial County area or are considering moving here due to a job transfer or relocation to any city in the Valley such as Brawley, Calexico, Calipatria, El Centro, Heber, Holtville, Imperial, or surrounding areas, contact Frederic Din, Imperial Valley MLS Board of REALTOR® as Your Imperial Valley Housing Specialist to help you find the right home at the right price.

Feel free to call my cell phone 619-241-4415 or email me fred@ivforeclosures.com at any time to discuss your home buying needs. I look forward to meeting you and helping you buy your home in the Imperial Valley and call it home.

Flood of Foreclosures in the Forecast

Less than 1/4^th of recent bank owned or REO properties taken back by banks over the last 60 days have been integrated into the local housing market according to research conducted by REALTOR® Frederic Din.

"I researched over 150 newly acquired bank owned properties from October 1^st through December 4^th, 2009 and found only thirty-seven properties listed in the Imperial Valley Multiple Listing Service (MLS) out of properties researched throughout the county".

While Frederic's research of "shadow inventory" in the Imperial Valley is ongoing, he states there are definite trends leading to a growing level of vacant bank owned properties, foreclosed upon by the bank and not listed on the market for sale which could lead to a flood of foreclosures in Imperial County.

"Some banks and servicing companies will sell their foreclosure inventory via websites utilizing a bidding process and ultimately sold to the highest bidder subject to terms and conditions".

"These properties may never be integrated into the MLS or counted as part of our local inventory through local real estate services; however bank owned homes definitely affect our housing market both in terms of property values within the neighborhood and their condition".

Other banks and servicing companies, such as Fannie Mae and Freddie Mac assign bank owned properties to real estate brokers and real estate agencies for disposition. These properties typicaly make it into the MLS service since they use local agents to list and sell their inventory. Services such as HomePath and HomeSteps allow buyers to review properties for sale and obtain lender financing directly through the investor as an additional incentive.

While most bank owned property sellers require a loan pre-approval letter along with an offer, properties owned by Wells Fargo or Bank of America / Countrywide require prospective buyers get pre-approved from their own institution in order for an offer to be considered, although the buyer is not obligated to use bank financing, however these banks often give free credit reports and appraisals as an incentive for keeping the financing transaction "in-house" so to speak.

Inventory levels have dropped in recent months to early decade levels causing fence sitting home buyers to hop off and make a decision to start looking at homes now, especially since the First Time Home Buyer Incentive will expire in mid-2010. To search homes already on the market click here http://ivforeclosures.com

"It's important for home buyers to review their credit history and mortgage approval options before shopping for homes, since all bank owned property sellers require a pre-approval to be submitted with the offer", says Frederic.

Bank owned property sellers want to make sure buyers are qualified to purchase the home in question, therefore the pre-approval is a precautionary measure taken by the seller to ensure the transaction will close and not waste time.

"Time and money are of the essence" says, Frederic, "these banks want these homes off their books in the least amount of time for the most money and having to bring a home back into the market diminishes both their time and money".

If you're interested in knowing which homes will be part of the foreclosures forecast, contact Frederic Din by calling 619-241-4415 or email your request to info@ivforeclosures.com and make sure you let him know you saw the article regarding the Flood of Foreclosures on this blog.

Do you have questions or comments, please make sure you let me know in the box below. Thank you.

Partial list of bank owned homes not listed for sale as of December 4, 2009

Imperial

• 2815 Powell Ct Imperial CA 92251
• 2733 Ironwood Rd Imperial CA 92251
• 1108 E 2^nd St Imperial CA 92251

El Centro

• 1318 Jacaranda Dr El Centro CA 92243
• 353 Jackrabbit Dr El Centro CA 92243
• 1842 Wake Ave El Centro CA 92243

Calexico

• 1281 Topaz Ct Calexico CA 92231
• 1173 Zapata St Calexico CA 92231
• 1201 Fiesta Ave Calexico CA 92231

Heber

• 59 W Black Horse Heber CA 92249
• 16 W Steer Ct Heber CA 92249
• 46 W 2^nd St Heber CA 92249

Brawley

• 734 Milano Ct Brawley CA 92227
• 824 Hickory Ct Brawley CA 92227
• 836 David St Brawley CA 92227

Data is deemed accurate but cannot be guaranteed

Flood of Foreclosures in the Forecast © 2009 Frederic Din, all rights reserved.

Find and Buy Foreclosure Bargains in Imperial Valley CA

First time home buyers, trade-up buyers, investors and bargain hunters are able to easily search and find Foreclosure bargainst to buy in Imperial Valley.

Home buyers can search properties in three foreclosure categories, PreForeclosure, Auction (Trustee Sale), and Bank Owned homes.

"I'm giving home buyers another choice when it comes to searching the internet for their dream home" says REALTOR(r) Frederic Din of EXIT Stepping Stone Realty, who is offering clients a value added search on his websites and blogs.

"It's simple, enter a city or zip code in the search bar below and select from one of three foreclosure categories to find and buy your foreclosure deal in Imperial Valley CA", says Frederic.

Search from areas within Imperial Valley such as Brawley 92227, El Centro 92243, Calipatria 92233, Westmorland 92281, Imperial 92251, Heber 92249, Holtville 92250 and other cities throughout the area.

If you find this search tool to be valuable in helping you find your dream home or bargain deal, contact Frederic and let him represent you as your buyers agent in the home purchase transaction.

Take a few moments to leave your comments on how you used the search to find your dream home.

Frederic Din, CA DRE License #01274420