Tim Lorenz

This morning in The Orange County Register had and article on foreclosures in Orange County. The home foreclosures dropped dramatically and quite unexpectedly. They reported that some of the economists are speculation that most of the toxic home loans have worked their way through the market and the housing market may bottom at the end of the year. Yes!

However, we must remember that there is a high unemployment and could still climb. Which would still have a negative effect on the market.

Forclosures sank in 75 percent of the zip codes in Orange County in the three months ending in June as comparied to the same period a year ago.

Some statistics from The Orange County Register:

1. 1. Aliso Viejo sales volume increase 14.5%
   2. Dana Point sales volume increase 63.0%
   3. Foothill Ranch sales volume increase 33.3%
   4. Ladera Ranch sales volume increase 23.9%
   5. Laguna Beach sales volume increase 100.0%
   6. Laguna Hills sales volume increases 22.7%
   7. Laguna Niguel sales volume decreases 3.9%
   8. Lake Forest sales volume decreases 5.2%
   9. Mission Viejo in 92691 decreases 30.9%
   10. Mission Viejo in 92692 increases 54.5%
   11. Newport Coast no change 0.0
   12. Rancho Santa Margarita decreases 24.2%
   13. San Clemente 92672 increases 30.3%
   14. San Clemente 92673 increases 13.0%
   15. San Juan Capistrano increases 16.2%

   16. Trabuco/ Coto increases 20.0%

Sales volume is up while price are still declining. If you are a seller and you need assistance a short sale is very possible contact me for more information.

Cypress Point is a community that rest on Alicia just across from Mission Viejo Lake. It consists of eight different models to these attached homes they are know as Cherry Hills, Inverness, Killarney, Agusta, Wheaton, Pinehurst, and Torry Pines. The community consists of 101 total units in a secur gated community. The attached homes all have fireplaces and 2 car garages. The Pinehurst model has 2 fireplaces. The homes range in size from 2 to 3 bedroom homes with 2 to 3 baths. The smallest home is 1257 sf. and the largest is 2195 sf.

Some on the homes back to the Casta Del Sol golf course. This community is known for its views and for the serenity of the community. The community does have a pool and is family friendly.

Behind the same gates is the Lake Ridge community that shares the same pool and many of these homes back to the Costa Del Sol golf course. These 67 homes are different in that they are detached homes. There are 5 models known as Ashbum, Cypress, Berkshire, Edinburgh, and Deerfield. These homes are 3 and 4 bedroom 2.5 bath homes ranging in size from 2202 sf to 2704 sf. Each home has a fireplace and 2 car attached garages, the two largest homes come with 3 car garages.

In Cypress Point there are 7 properties on the market ranging in price from $290,000 to 545,000 the properties on the market are 1257 ft 2 bedroom 2 bath, 1462 sf 2 bedroom 2bath, two1800 sf 3 bedroom 2 bath, 1964 sf 3 bedroom 2 bath, and two 2041 sf homes.

In the Lake Ridge community has only one home currently on the market it is the 2704 sf home on Muirfield and the asking price for that home is $599,900.

If you would like to see any of these properties or you were wanting to know the value of your property in either Cypress Point or Lake Ridge contact Mark Paulson or Tim Lorenz. We would be happy to help you.

A big article appeared in The Orange County Register this morning on US Index showing signs of stabilizing It maybe true, I hope it is. The Case-Shiller 20 city index for May posted its first monthly increase since 2006.

However, the greater Los Angeles area includes Orange County and we showed a .1 percent decrease from previous mohth. We were hit harder than a lot of other areas of the country due to the risky loans that the buyers have and had. Those will still have to work their way thru the market so we may not recover as fast as other areas.

We will be watching and let you know as the market changes.

Which is Better, a Foreclosure or Short Sale to Buy Again?

The question always comes up, "Is it better to do a short sale than go through foreclosure?" The circumstances that lead up to the loss play a roll in the final answer along with the timing of how soon someone can purchase another home. These are the guidelines in place by FNMA and FHLMC.

Foreclosure: A legal procedure in which a mortgaged property is sold by the trustee to pay the outstanding debt following a default.

Short Sale: A workout program wherein the lender accepts an amount as payment in full that is actually less than the total payoff due.

In order to be able to purchase a home again after a foreclosure there are two timeframes that are determined by the circumstances that lead to the foreclosure. The two categories are Extenuating Circumstances and Financial Mismanagement.

Extenuating Circumstances: When a single occurrence or set of circumstances that prevented the borrower from meeting his financial obligations.

Financial Mismanagement: If unable to support the existence of extenuating circumstances.

The amount of time that needs to elapse after a foreclosure that was caused by extenuating circumstances is 36 months. The amount of time after a foreclosure that was caused by financial mismanagement is 60 months.

On a short sale circumstances are not he deciding factor like it is for a foreclosure. The loan to value on the next purchase is the deciding factor. If the borrower has 20% down payment on his next purchase the time needed to elapse is 24 months. If the borrower has less than 20% down payment on his next purchase the time needed to elapse is 48 months.

Summer is a great time of year here is South Orange County. Sunny warm cool evenings and nights. Have you ever thought how great a place this truly is. Others have to live with humidity, super hot temps. and hot at night as well. The weather alone is worth any other problems we may face.

The area is clean beautiful and does not have a high crime rate. No extreme danger here. I guess that is why I live here. If you need more info. on the area contact me.

Thanks

Tim