San Diego Home Buyer

30 Month Foreclosure backlog in the U.S.

March 30, 2011 By Avalar San Diego Leave a Comment

This Foreclosure information just came out to the public this week. The country is in for quite a ride in the next 2-3 years. Espicially note that the average time that a US loan is delinquent is 537 days and a full 30 % of loans in foreclosure have not made a payment in 2 years.

These facts are great news for buyers and investors because this places these homes at sale prices. Interest rates are still holding very low. There has not been a better time to invest in real estate but a word of caution about over encumbering oneself with very high mortgage payments. Be prudent and responsible when you invest and of course only use highly experienced and ethical professional to assist you.

JACKSONVILLE, Fla. – March 28, 2011 -The February Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE: LPS) shows that while delinquencies continue to decline, an enormous backlog of foreclosures still exists with overhang at every level. As of the end of February, foreclosure inventory levels stand at more than 30 times monthly foreclosure sales volume, indicating this backlog will continue for quite some time. Ultimately, these foreclosures will most likely reenter the market as REO properties, putting even more downward pressure on U.S. home values.

February’s data also showed a 23 percent increase in Option ARM foreclosures over the last six months, far more than any other product type. In terms of absolute numbers, Option ARM foreclosures stand at 18.8 percent, a higher level than Subprime foreclosures ever reached. In addition, deterioration continues in the Non-Agency Prime segment. Both Jumbo and Conforming Non-Agency Prime loans showed increases in foreclosures and were the only product areas with increases in delinquencies.

The data also showed that banks’ modification efforts have begun to pay off, as 22 percent of loans that were 90+ days delinquent 12 months ago are now current. Timelines continue to extend, with the average U.S. loan in foreclosure now having been delinquent for a record 537 days, and a full 30 percent of loans in foreclosure have not made a payment in over two years.

Filed Under: San Diego Home Buyer Tagged With: Foreclosures

Do you really need condo insurance/

January 9, 2011 By Avalar San Diego 2 Comments

Do you really need condo Insurance?

All Real Estate Agents, Brokers and Insurance agents will all response “of course you do”. Across the country there are many different kinds of Condominium Associations and some of them offer a master policy that might cover liability, fire, medical coverage and personal belongings in the unit.

Most Condominium associations here in San Diego California are responsible for insuring the common areas, the exterior of the building, common recreational areas and walkways. As the condo owner you are responsible for insuring everything inside the walls of your unit including liability, fire damage, personal property and medical coverage for quests. We always advise the prospective homeowner to look at the Condo Associations master policy and then review their personal needs with a competent Insurance broker.

Because you probably have a large investment in your personal property, you need enough coverage
to compensate you if you suffer a covered loss. One insurance study found that many
condominium association unit owners are under insured in terms of their
personal property. Whatever type of association you are going to live in, a good way to be
certain you have adequate coverage is to complete an inventory of your
possessions and their purchase date and price. Some insurance companies have inventory
forms available to assist you. Put your inventory listing in a safe place outside your home. Photographs and images saved outside your home will speed up any claim resolution after a claim is filed

Your Guest medical Protection:

If one of your guest gets injured while they are visiting your property then guest medical protection will provide reasonable payments to cover your guest medical expenses whether or not the accident in your condo was your fault

Liabi

lity protection:

This coverage is really important. It protects the Condo owner against the legal responsibility for property damage or injury that you or someone else insured under your policy either on or away from your property may have caused to another person. Defending yourself and covering the damage to the injured party could cost you tens of thousands of dollars including your defense cost. if you have any assets these could be at risk if there is a court award or litigation.

xtra coverage to investigate:

If you are running a small business out of your condo it is wise to check for coverage on your business equipment and records. Also check to see if you are covered for additional living expenses in case there is damage to your unit and you have to stay out of the property during repair. Also check for special assessment coverage that can partially cover your damages if an assessment is levied against your property by the home owners Association. If you have collections, jewelery, expensive art or electronics you may want to get additional coverage to cover any loss. Also check with your insurance broker regarding flood insurance.

Fred Gregory CRS, Broker Team Gregory Inc. San Diego’s High Tech Broker/

Filed Under: San Diego Home Buyer, San Diego Real Estate Tips Tagged With: condo insurance

The Housing Market …What is the Future Outlook?

August 3, 2010 By Avalar San Diego 1 Comment

The Housing Market Report:
Current snapshot and future outlook

Is now still a good time to buy? Is a home still a good long term investment? Is there an end in sight and will the housing sector ever fully recover?

For prospective and current home buyers, these questions surely remain at the forefront during one of the most challenging housing markets we’ve faced in recent years. Knowledge is your best diagnostic tool and a big picture of different segments in real estate can help your clients get a better grasp of the current state of the industry. Read on for a summary of recent mortgage, home sales and new construction data and what these trends might indicate for the future.

Mortgage Rates
Good news came in June for home buyers eager to enter the buying market in the form of record low long term interest rates. In the last week of June, the rate for 30-year fixed rate mortgages averaged 4.69 percent while 15-year fixed rate mortgages averaged 4.13 percent, according to RealEstateABC.com’s Mortgage Interest Rate report. In July, Freddie Mac reported the national average for 30-year fixed rate loans at 4.56 percent (lowest rate in nearly 40 years), compared to 5.2% in July 2009.

And experts suggest chances are good that interest rates may remain steady or drop even lower, to help stimulate more home sales. Excess inventory creates a lot of competition among sellers and drives a buyer’s market of surplus choices and affordable home prices.

Home Sales and Home Prices

Existing home sales (completed transactions for previously owned single family homes, townhomes, condos and co-ops) continued to dip in June, falling at a rate of 5.1 percent since May to a seasonally adjusted annual rate of 5.37 million, according to the National Association of REALTORs (NAR).

The NAR reports on monthly home sales represent the total number of housing units that would be sold annually if the current rate were to remain fixed. NAR also reported a continued sales decline from May to June in nearly every region nationwide, except for the Northeast, which showed a growth of nearly eight percent to an annual level of 960,000. Home prices also remained steady, with the median existing-home price topping out at $183,700 in June, about 1 percent higher than this time last year.

Total housing inventory at the end of June is also up by 2.5 percent to 3.99 million existing homes for sale, which represents an 8.9-month supply at the current sales pace. Experts attribute the slow in home sales due to the recently expired federal tax credits.

Despite the onset of market fluctuations, total annual home sales are still on track to be higher than 2009 and conditions are becoming more balanced in most markets across the country. However, experts caution that a projected housing rebound would still move at a conservative pace given current challenges including high unemployment, low consumer confidence and strict lending standards.

New Construction
Perhaps one of the hardest hit sectors, housing starts plummeted to the lowest levels since October this year, dropping five percent from May to June. Most of the decline was due to a 20 percent drop in condo and apartment construction, while construction of single family homes only dipped 0.7 percent. The Commerce Department projects new home construction to be on pace for a seasonally adjusted annual rate of 549,000.

Thankfully, there’s a silver lining. Building permits (a gauge of future activity) increased 2.1 percent from May to June at an annual rate of 586,000. Depressed sales and low consumer confidence mean fewer construction opportunities, which usually fuels economic resurgence. According to the National Association of Home Builders, each new home built creates the equivalent of an average of three jobs a year and generates $90,000 in paid local and federal taxes.

During April, slightly less than 675,000 new homes were being built. Reports show that this number is less than half of what is necessary in order to meet the demand for growth of the U.S. population in the long term.

Filed Under: San Diego Home Buyer, San Diego Real Estate Tips, sell real estate in san diego

Financial Regulatory Reform Bill Enacted- Implications for all

July 27, 2010 By Avalar San Diego 1 Comment

Financial Regulatory Reform Bill Enacted-Implications For All

By Steve Cook, With Permission

The financial regulatory reform bill signed into law this week could result in more accurate home valuations, higher appraisal costs, faster closings, more completed transactions and maybe even higher prices, according to critics of a controversial quasi-governmental regulation that the legislation eliminated.

Enacted a year ago last May, Fannie Mae and Freddie Mac enacted the Home Valuation Code of Conduct (HVCC), meant to reduce mortgage fraud and collusion. However, instead the HVCC generally caused chaos, increased costs and delays in the closing process.

The bill eliminated the HVCC and creates a new Bureau of Consumer Financial Protection that takes over from the HVCC and that is charged with carrying out the first modernization of real estate appraisal regulations in more than 20 years.

“This bill will mean good news for consumers because they should see more reliable home appraisals,” said Appraisal Institute President Leslie Sellers. “It will encourage the use of highly trained and competent real estate appraisers and will provide much-needed resources for oversight and enforcement.”

Critics of the HVCC said the regulation forced lenders to use appraisal management companies that charged less and lacked the manpower to provide timely appraisals, often using appraisers from outside the local marketplace who were unfamiliar with market conditions.

A study by the National Association of Realtors released a year ago found that more than three quarters of Realtors reported the time to get an appraisal increased after the HVCC took effect, ,most said the waiting tine increased more than eight days. More than a third said they lost sales as a result.

Eighty-five percent of appraisers and 55 percent of Realtors reported a decline in appraisal quality.

Many also have charged the HVCC with encouraging appraisers to issue valuations on the conservative side. ” The HVCC has distanced the appraiser from both the buyer, buyer’s agent, and loan originator, while at the same time reducing the amount of money an appraiser can expect to earn per appraisal by as much as 50%, and appraisers today are now more conservative than ever before,” said Phoenix Realtor Steve Belt last year.

In New York City, the Real Deal blog reports many New York brokers and appraisers say HVCC has wreaked havoc on the city’s residential real estate landscape because it’s resulted in a great number of lowball appraisals, often determined by appraisers with limited experience in the New York market.

Low appraisals aren’t necessarily good news for buyers. When appraisals come in under the purchase price, buyers must come up with the cash to make up the difference or lose the home. Today many buyers already are stretching to make down payments and closing costs, which must be paid out of pocket.

Ironically, during its short life, the HVCC did not reduce appraisal fraud. Incidents of mortgage fraud and misrepresentation increased by 7 percent from 2008 to 2009, according to the Mortgage Asset Research Institute.

Filed Under: San Diego Home Buyer, San Diego Real Estate Tips