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Gary Ricco Pre Foreclosure Specialist PSC & CDPE

Santa Clarita Realtors Helping Frustrated Home Buyers, Jennifer & Gary Ricco PSC & CDPE Keller Williams VIP Properties 661-290-3837

I have been through 8 homes, either outbid or short sales going under review for "modification". It is extremely frustrating. Seems to be a shortage of homes that fit our criteria, should I hang in there and relax, or put it off until next year? Will the $8K be there next year or is it over in 2009?

Frustrated over the housing market in Santa Clarita. We finally decided to stop renting and jump into this market. I went to a direct lending institution and we were pre-approved for a decent amount for the income that I make. Armed with a pre-approval letter, proof of funds, Fico scores and a 3% earnest money deposit we found a Realtor to work with who has patience beyond measure but we keep running into the same problem every single time. We find a place that suites all of our needs, is in a decent location and we would be able to see ourselves living there for a few years. We put offers in on 4 places thus far, every single time we have had to wait 4-5 days and get STOMPED on by someone with a better offer, granted they would never really ever tell us the amount of the other offers. This situation has been ridiculous, we have been almost $20,000.00 over the asking price in some cases and we would still lose the bid. Its become so frustrating, what are we to do in this market to position ourselves to get our offer accepted?

These are some of the stories we have heard from frustrated home buyers and I'm sure, if your trying to purchase a home right now you have a story similar to these. The competition is fierce in Santa Clarita as it is in all of California as well. Its important to understand we are experiencing historically low levels of inventory to sell here in Santa Clarita and all across California.

We can all speculate how this market is being manipulated by the government & the banks. In reality, the market it is what it is and takes highly trained professionals driven by ethics, not commissions to get the job done. As Realtors, Jennifer and I have sought the best training our industry has to offer. We have both received our Pre Foreclosure Specialists certifications www.partnerfirst.org and the Certified Distressed Property Expert designation www.cdpenow.com. This training ensures sellers & buyers are working with two highly trained professionals who are staying on top of this changing real estate market. Our knowledge and professionalism helps alleviate the frustrations home buyers are experiencing in this market.

This is how Jennifer and I position home buyers to win bidding wars with their offers.

First; As a Realtor we have to understand your purchasing power, which will paint a clear picture of the areas/properties in Santa Clarita you can afford. Closing cost credits, HOA dues & Mello-Roos expenses are major factors that need to be addressed.

Second; Jennifer and I study the comps in each particular neighborhood. Looking within a 1/2 mile radius first, then 1 mile out should their be no current comps and compare per-square-foot costs. We examine the median prices of the pending against the median prices of the solds. We use only the comps of homes that match as closely as possible to the home you want to buy.

Prior to showing the property we always talk with the listing agent in a effort to determine a price to offer, see if the listing agent has a ton of offers and if the property is still available. These facts will often help determine if you have to offer more than the list price. Jennifer and I will then suggest you offer a price within that range, knowing it will not appraise, at which point your the only offer to renegotiate with.

Finally; Put down at least a 3% earnest money deposit, of the asking price. You're going to put the money into escrow anyway, so do it upfront. Jennifer and I always write a letter to the seller, explaining why you want to buy that home and submit it with your offer.

Here is a link to our FREE MLS search engine. Its very user friendly. If your looking to make a purchase in this market please call us for a consultation, we'd be happy to help you understand our local market conditions. http://www.santaclaritavalleyhomesonline.com/buyers.htm

If your struggling with your mortgage payments call us for a free consultation, we're here to educate you on the options you qualify for whether its keeping you in your home or selling it through a short sale.

Pre Foreclosure Specialists Bank Owned & Short Sale Listings Powered By GOOGLE Maps Direct access to SoCal Multiple Listing Service.

Searching for bank owned & short sale properties? Our FREE search IDX is powered by Google Maps. If your searching for bank owned or short sale properties go to www.santaclaritapreforeclosurespecialists.com When this page opens click on the middle icon below the photos, titled "short sales/REO's"

Once the Pre Foreclosure/Foreclosure page opens, you will see the Google map to the right. This tool is very interactive. By clicking on the green dots you will see all the pre foreclosure & foreclosure listings in that area. Just above the list of properties to the left you will see 2 tabs titled search & results. By clicking on the search tab you can change your search criteria. The results tab will show you the properties matching your search. Clicking on the property photos will provide details & information about the property.

You can also drag the Google Map around to the area you want to search in. For example, lets say you want to find bank owned and short sales in Thousand Oaks. Click on the minus sign on the zoom tool until you can see Thousand Oaks. Then click on the green dot in Thousand Oaks and all the listings will show up. Repeat the process for any city you want to search in.

This system also gives you the ability to create an account so you can track your favorite properties. The system will automatically notify you of price reductions and send you emails when new properties come on the market that meet your search criteria. If you have questions about any of the properties, you can email those questions and get answers hassle free.

Foreclosure & Default Numbers Continue to Rise 2nd Quarter 2009

Here are the National foreclosure & default numbers according to the Mortgage Bankers Association for the 2nd quarter of 2009.

These numbers were provided by the Mortgage Bankers Association,which they distribute quarterly. They are based on 45,000,000 mortgages and are seasonally adjusted.

National numbers on all Mortgages

4.30% in foreclosure

8.86% in default (30+ days late)

13.16% Total in Default

National numbers on Prime Mortgages

3.00% in foreclosure

6.41% in default (30+ days late)

9.41% Total in default

National numbers of Subprime Mortgages

15.05% in foreclosure

25.35% in default (30+ days late)

40.40% Total in default

National numbers of FHA Mortgages

2.98% in foreclosure

14.42% in default (30+ days late)

17.40% Total in default

National numbers of VA Mortgages

2.07% in foreclosure

8.06% in default (30+ days late)

10.13% Total in default

All Mortgages - 2009

Total Distressed Properties: 9,550,000

Total Predicted Sales: 4,760,000

As you can see the numbers in default are much higher then those in foreclosure, reason being is the government put a moratorium on foreclosures which has slowed the foreclosure process. Also Freddie Mac and Fannie Mae have publicly stated they want to move distressed assets through short sales vs acquisition and REO. President Obama's efforts and programs have given the banks incentive to complete more loan modifications where homeowners qualify and to streamline the short sale process for those who don't qualify.

To complete a short sale and successfully negotiate its close in today's market conditions requires a Realtor who has received Certified training as a Pre Foreclosure Specialist. In many subdivisions as many as 86% or more of the properties active on the MLS are distressed (pre-foreclosure, short sale, bank owned). With 86% of an area's listings being distressed, we have seen as high as 80% or more of an area's closings come from distressed properties.

If your struggling to make your mortgage payment or have missed three or more mortgage payments, it's time to take action. Don't gamble with your financial future, As a Certified Pre Foreclosure Specialist with a Certified Distressed Property Expert designation, my wife and I have helped homeowners avoid foreclosure and get on with their lives. You owe it to yourself to learn what options are available to minimize your financial loss and limit the damage to your credit history. Our consultation is free, educational and confidential.

Whether your looking to buy or sell, it's critical to select a Realtor who understands this market, has your best interest in mind and the ability to get the job done. Please contact, Jennifer & Gary Ricco at Keller Williams VIP Properties, we're specialists in Santa Clarita's Pre Foreclosure Real Estate. 661.290.3837 Please visit us at www.SantaClaritaPreForeclosureSpecialists.com

Please visit www.PartnerFirst.org and www.CDPEnow.com to learn about the training we received and networks Jennifer and I are affiliated with.

Home Sales Warm Up, However The cold chill of Falling Home Prices Awaits Many Americans This Winter.

For the past 2 years I have been following the number of mortgage defaults and developing a business to help struggling homeowners. Here is a post I wrote back in April showing the foreclosure trends. http://activerain.com/blogsview/1013521/-national-foreclosure-default-numbers-continue-to-rise-fouth-quarter-2008 The folowing will show you we are not out of the woods yet.

Home sales jumped 7.2% between June and July, the largest increase in over a decade with the fastest pace in nearly two years. However, according to the National Association of Realtors(NAR). Prices are down 15% compared to last year.

The banks along with the government moratorium on foreclosures have fostered a sellers market to slow and stop the devaluation of home prices. A combination of distressed properties, seasonal trends, low interest rates, and tax credits for first-time buyers is working its magic. Several issues have me worried that instead of an end to this housing nightmare, we are about to be hit by another wave of foreclosure.

With a large percentage of sales focused on foreclosures, short-sales, or other forced transactions rooted in financial distress, our current buying trends are by no means normal. It's no wonder, with the Mortgage Bankers Association (MBA) reporting that more than one in eight mortgage holders are in some stage of delinquency or foreclosure. http://www.mortgagebankers.org/NewsandMedia/PressCenter/68008.htm

In July foreclosures jumped 7% compared to June. With subprime borrowers unable to refinance loans and prime borrowers unable to pay their bills because of job loss we will see default numbers continue to rise. According to the MBA survey, 58% of new foreclosure starts originated in the well-to-do prime loan category, up from 44% last year. Meanwhile, subprime borrowers were responsible for only 33% of foreclosures, down from 49% last year. As foreclosures affect a larger and larger swath of the population, it will only add to the number of properties on the market and prices will naturally gravitate lower.

The major problem were facing now is the wave of loan resets in 2010 and 2011. As you can see in the chart below, a large number of prime, Alt-A, and Option ARM borrowers will be facing a higher payment, due to a mortgage rate reset, just as the housing market digests the fallout from the subprime problem of 2007 and 2008. Notice the reset activity for 2009. Should the economy actually start recovering, the Federal Reserve will have no choice but to raise interest rates during this period.

We also have an inventory issue. Despite a spike in sales, the inventory of existing homes for sale actually increased 7.3% to 4.1 million last month nationally. Here in Santa Clarita, California our inventory is at historically low levels, however with the foreclosure moratorium being lifted and homeowners attempting to short sell we could see a wave of properties hit the market by late fall.

Whats alarming to me is what Zillow found in it's latest survey. Zillow found that a full 81% of homeowners believe their homes value wont fall in value over the next six months. Adding to the perception that people are losing touch with reality, only 60% believed the value of their home had fallen over the last year; when in reality 83% of all homes actually lost value during that time.

My wife Jennifer and I are here to help homeowners who are dealing with foreclosure. After serving in the Military and Law Enforcement we pride ourselves in doing the right thing for those in need. Now is not the time to gamble with your financial future, you need a Certified Pre Foreclosure Specialist who understands this market and has the experience to get the job done. Call for your free consultation. 661-290-3837 We offer & extend our expertise from Santa Clarita to Oxnard through Thousand Oaks and the San Fernando Valley.