The Kleen Realty Group Temecula, Murrieta, CA Short Sales

Janet Kleen Nominated in the North County Times "Reader's Choice - Top Agent Award"

North County Times has issued a "Reader's Choice - Top Agent Award" and the Kleen Realty Group's very own Janet Kleen has been nominated.

If you receive the North County Times, you may have seen Janet and other's nominated in Sunday's (December 4th) Paper in the Home section on page F6.

Please log on to North County Times here to Vote for Janet Kleen and learn more about the award and voting rules.

The voting period begins today, December 5, 2011 and ends on December 18, 2011. Each Voter can issue a vote one time per day, every day during the voting period.

If you have worked with Janet Kleen, here is your opportunity to give her the recognition she deserves by voting her into this prestigous award. We hope you will take the time to give appeciation and recognition and support Janet with your votes!

The Kleen Realty Group's team of professionals bring you the highest level of real estate knowledge, expertise, marketing and experience in the Temecula Valley, including Temecula, Murrieta, Menifee, Wildomar and Winchester. When you're ready to work with a team of professionals, or if you have any general questions about buying or selling real estate in California, we would be more than willing to help. Visit us at www.TheKleenRealtyGroup.com, email us or call us at 951-265-4305 today!

Please visit our website to search for Temecula Valley homes just like a Realtor® does!

Should you rent or buy in Murrieta?

Due to the pounding home prices have taken and the increase in demand for rental units, it is now much cheaper to buy a home than rent a comprable one in many U.S cities, including here in Murrieta in many cases.

The buy-rent calculation that we discussed in our previous blog "Rent vs. Buy a home in the Temecula Valley" is just one part of the decision-making process. Here are some other questions you should ask yourself when deciding whether to rent or buy in Murrieta:

• How long do you plan to live in Murrieta? If you're not keeping the home for several years, transactional costs of buying and selling (e.g; commissions, closing costs) can wipe out any buying edge.
• Do you have cash for closing? It's not easy to find banks willing to lend more than 80% of the cost of a home. That means buyers have to come up with 20% down, plus closing costs. On a $200,000 home, that's $40,000. One of our preferred lender, Greg Cook, can help you understand the requirements.
• Can you cover all the homeownership costs? It's not only the mortgage: There are property taxes, insurance, heat, utilities and regular maintenance.
• Can you can claim the tax advantages of homeownership? Mortgage interest is deductible and can shave a lot off tax bills but this benefit accrues mostly to high income earners with substantial mortgage payments. Many borrowers claim the standard deduction on their taxes and so derive no savings from the deduction.

Just as we did in our previous blog, let's put the rent ratio formula to test on two similar Murrieta properties. The property for sale is one of our listings:

• The first home is for rent. It is a 5 bedroom, 4.5 bath single family home with 3,235 sqft on Albacete Avenue in Murrieta, CA. It is listed for rent at $1,895/mo.

• The second home is for sale. It is a 5 bedroom, 4.5 bath single family home with 3,235 sqft at 34087 San Sebastian Avenue in Murrieta, CA. It is listed for sale by Janet Kleen of The Kleen Realty Group at $240,000. You can buy this home with estimated monthly payments of just $1,411/mo!

The annual rent for the first home is $22,740. So the rent ratio of these two spacious Murrieta properties is $240,000/$22,740 = 10.55. Remember, from the previous blog, a rent ratio of anything less than 10-14 is clearly a buying sign.

But let's play devil's advocate for a moment. Let's suppose it was cheaper to rent in Murrieta, or in any other Temecula Valley city... You still might not come out ahead of the game. As disciplined as we all try to be with our hard earned income, it's easy to justify certain expenses over savings. A mortgage essentially forces us to save. Every time you make a mortgage payment, you lower the balance owed and increase the value of your property holdings. Unlike your readily available bank account, the investment in your home mortgage is much more difficult to access.

Homeowners have to go through a lengthy and costly process to access this investment by taking out a home equity loan or a cash-out refinance. These are actions one usually doesn't take unless there's a specific need. Depending on where the location, renters may save on monthly expenses. However, contrary to the forced savings of mortgage payments, renters ultimately end up with nothing to show for their monthly payments in the way of savings.

Ultimately, however, the decision whether to buy or rent in Murrieta (or in any part of the Temecula Valley) depends on your situation and your plans for the future. If you would like to sit down and discuss your options and your specific needs, our Buyer's Specialist, Janet Hoesing, would be happy to meet with you. Feel free to contact Janet H. by email or at 951-837-6242 to schedule an appointment.

Rent vs. Buy a home in the Temecula Valley

We all understand the benefits of homeownership. But in today's market, particularly here in the Temecula Valley, where we have seen and felt so much depreciation in home values, many have chosen to rent vs. buy.

Well how about this? Rent may be costing you more each month than owning! Buying a home fell below renting costs in 74% of the country’s 50 largest cities over July, with 12% of cities seeing higher price tags for apartments than for houses, according to real estate website Trulia. Trulia uses the rent ratio formula. Not sure what the rent ratio formula is? Think about it this way... If you find two similar houses, one for sale and the other for rent and divide the sale price by the annual rent, you can call the result the Rent Ratio.

I decided to put the rent ratio formula to the test on two very similar homes I found listed in Temecula:

• The first home is for rent. It is a 4 Bedroom, 3 bath, Single-Family Home with 2,068 sqft on Masters Drive in Temecula, CA listed for rent at $2,200/mo.

• The second home is for sale. It is a 4 Bedroom, 3.5 bath, Single-Family Home with 2,018 sqft on Shorewood Court in Temecula, CA listed for sale at $232,900. You could buy this home with estimated payments of just $1,369/mo!

The annual rent for the first home is $26,400. So the rent ratio of these two lovely Temecula properties is $232,900/$26,400 = 8.82. So what does that mean? Basically, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything below that starts to indicate that home ownership is more financially sound than renting. Anything less than 10-14 is clearly a buying sign. On this one specific example, we were at an 8.82.

Just like in the Temecula Valley, real estate markets across the country are experiencing a declining rent ratio. Which makes for excellent opportunities for first time home buyers. Prices of homes continue to decline here in the Temecula Valley while rents for single family homes are remaining constant (or increasing).

If you are a Temecula Valley resident who is currently on the fence over whether to rent vs. buy, we would be happy to sit down with you and discuss your specific needs. Contact Janet Hoesing, our Buyer's Specialist by email or at 951-837-6242 for more information. The Kleen Realty Group serves the entire Temecula Valley, including Temecula, Murrieta, Menifee, Wildomar, Winchester, and beyond.

Winchester, CA Short Sale Bank Approval in Just 3 Weeks!

You heard us right! The Kleen Realty Group got this 4 bedroom, 2 bathroom home home in Winchester short sale approved by the bank in just 3 weeks. What’s even more amazing, is that we overcame a scheduled foreclosure to do this! Now all we need is a buyer!

This lovely Winchester, CA single story home has 4 bedrooms plus a den. The den opens to formal living and dining room. There is a gas fireplace which separates the family room from the living room. The floor plan is perfect for family gatherings and entertaining! The large master suite has a separate tub/shower, dual sinks, and a large walk-in closet. Amenities include ceiling fans, custom paint, and french doors. This Winchester home is situated on a large lot in a cul-de-sac with no backyard neighbors. Low taxes, low HOA, and the terrific Temecula school district makes this home most appealing!

This bank approved short sale is offered at just $200,000. If you don't yet have a Realtor®, please contact our Buyer's Specialist, Janet Hoesing by email at janethoesing@gmail.com, or by phone at 951-837-6242.

The Kleen Realty Group is so happy to have gotten this Winchester, CA Short Sale Bank Approved in Just 3 Weeks. Whenever we research the latest foreclosure and distressed property statistics, the sheer number of Americans facing the stress of losing their homes amazes us. It is our goal to help as many homeowners here in Winchester, CA and the entire Temecula Valley as we can. Knowing that there are so many that need our help is a driving force for us to continue doing what we do. We're excited about acting as a resource for more homeowners who have questions about what they should do. As always, if you know homeowners in the Temecula Valley who may need our help, have them contact us immediately! Together, we can put them back on the path to financial stability.

Temecula California Short Sale News

On July 15th, 2011, California Governor Brown signed the short sale bill, SB 458 into law. SB 458 extends the "no deficiency" protection to junior liens. This new bill prevents second mortgage holders from pursuing a borrower for the remaining balance on a loan after the closing of a short sale. This is great news for Temecula residents who may be facing a short sale...

SB 458 is an extension of the current bill, SB 931, which applies to first mortgages in California. The new law also bars any short sale lender from demanding any additional payment from the seller. Previously lenders have had two methods to get sellers to share the deficiency:

• Recourse after the short sale
• Contribution at the short sale closing.

While SB 931 only stopped recourse for first lenders, SB 458 stops recourse for junior lenders as well. If a 2nd or 3rd lien holder agrees to a short sale, they are agreeing that the lien was paid in full and they cannot pursue a deficiency judgement against the former homeowner?

Good News, Right?

If those loans were written as non-recourse loans, then it is Good News for Temecula Homeowners dealing with a Short Sale. But what if, buried in the terms of the note recourse is allowed? Then the short sale could be over before it started! It's hard to tell how prevalent "recourse loans" might be, but a lot of the seconds and thirds were done to consolidate debt, purchase motor homes, pay for plastic surgery etc. so the lenders may or may not be banks you're used to dealing with.

So what does that mean to you?

If your 2nd or 3rd mortgage has recourse, a foreclosure could be more beneficial to those mortgage holders. The second and third mortgage holder does have the power to veto the short sale. But I believe that they will go through with the short sale under this new law when there is a financial benefit for such action.

This new law brings hope for Temecula homeowners as well as to anyone in the California who may be facing foreclosure. While SB 458 simplifies the short sale process, it brings new implications with it . We all know that the short sales can be complicated. What remains clear is that you need an expert on your side to negotiate your short sale in the Temecula, California area. Contact The Kleen Realty Group to discuss your options.