by Vincent Bindi on October 10, 2008
Loan modifications are only truly relevant in the real estate world when property values have dramatically declined, similar to what has happened recently in Orange County, CA. Since the Orange County real estate economy has been rising since 1997, most people here have had no need to learn about loan modifications. Therefore, when a homeowners mortgage needs to be addressed for any reason, refinance is the initial thought. Refinancing is advisable in a stable or increasing market. It gives homeowners the ability to take cash out when needed, lower their interest rate, fix their interest rate, as well as other options.
In today’s declining market in Orange County, refinancing is available to only a select few. Getting approved for a traditional refinance is extremely difficult. This is due to Wall Street is no longer purchasing loans from originating banks, lenders have cut programs to less qualified borrowers, and loan to value ratios have substantially increased in Orange County and elsewhere. If the government is not guaranteeing buying loans then most brokers and lenders will not release their funds. Fannie Mae, Freddie Mac and FHA are the Government Sponsored Enterprises (GSE’s) who are supposed to come to the rescue but are unable to do so in the recent financial crisis that hit Orange County and the rest of California.
Potential Orange County homeowners or current homeowners looking to get financing must now have superb credit , lots of equity in the home (or larger down payments), provable job security, disposable income after the bills are paid and proof of the ability to repay a large mortgage. If any of these conditions these conditions are not met, getting a refinance (or new) loan is almost impossible. When considering refinancing in a market where equity has evaporated, causing loan balances to exceed property value, there is not option to refinance. That is when Loan Modification comes into play.
A Loan Modification is a negotiation with your current mortgage lender(s), in an effort to possibly reduce the loan payments, interest rate, or even the loan balance. A loan modification should be employed if the equity in the home is less then 5%, and the homeowner has had a recent financial difficulty, which in today’s market applies to about 70% of the populace due to the recent word financial crisis.
In today’s declining market, refinancing is available to only a select few, while a Loan Modification is more readily available to the masses of homeowners. For more information about Loan Modifications, please visit our Attorney based Loan Modification affiliate at: www.CaLoanModLawyer.com … or drop them an email at: Info@CaLoanModLawyer.com
by Vincent Bindi on October 6, 2008
Unfortunately, real estate values have declined substantially in Orange County, CA. in the past 2 years. Home prices have dropped by as much as 35% in some areas, to market values that existed in 2004’. A small consolation to homeowners who purchased in the years 2005’ and 2006’, is that it may be possible to reduce your Property Taxes. As specified in Proposition 13 (Prop 13), your property taxes are based upon the price you purchased the home for times approximately 1.15%. For example, if you purchased a in 2006 for $700,000, your property taxes are approximately $8,050 per year. If your Orange County home is now worth $500,000 today, then you could possible save about $2,300 per year!
So far this year (2008’), the Orange County tax assessor has estimated that there are 125,000 properties that have a Market Value that is lower then the Prop 13 Tax Value. And the Tax Assessor has already sent thousands of tax reduction notifications to many Orange County homeowners. The problem is that the Tax Assessors automatic property reduction is typically substantially less then what you can accomplish by disputing your tax bill.
So lets begin to estimate if a reduction in your property taxes is possible. First, you can go to the follow Orange County Tax Assessor website: http://tax.ocgov.com/tcweb/search_page.asp and enter in your APN number and obtain a quote of your current Tax Bill. Next, lets get a quick and free rough estimate of he value of your home. Go to www.Zillow.com and type in your address, and this software will give you an estimate of the current value of your home. A word of caution, Zillow can sometimes give inaccurate results, either high or low by Tens of Thousands of dollars. A much more accurate estimate can be obtained by a local experienced Realtor. I only recommend Zillow because it is instantaneous and easy. With this current market value, multiply by 1.15%, and compare this Tax amount to the Tax Bill found on the Assessors website above. If it is lower by about $400 or more, then I suggest you pursue a property tax dispute.
It is possible for you to conduct the dispute with the Tax Assessor yourself. The property tax dispute form is free, and not too terribly complicated. But if you make a mistake and it is rejected by the Orange County Tax Assessor, then you have to wait for one year, before you can attempt another dispute…potentially costing you hundreds if not thousands in savings. According to the Orange County tax assessor, the number one reason for declined property tax disputes are not due to the form being incorrect, but the current market valuation that is required to be submitted with the form. Comparing your home other like kind homes that have recently sold, and making the appraiser like adjustments, up or down, is not as easy as it looks. Therefore, we recommend that you hire the services of a licensed appraiser or a property Tax reduction firm. I could list some here, but you can easily find numerous service providers by searching in Google using “Reduce Orange County CA property taxes”.
If you have any questions regarding your Orange County property taxes, or real estate in general, please feel free to call us at: 949-388-3396, or email us at: Info@SearchOCHomes.com
by Vincent Bindi on September 23, 2008
The general perception of many homeowners in Orange County is that the ‘bank is trying to take my home’. That is not true. No bank wants to foreclosure on a property in a declining market such as the current situation in Orange County. The bank lent the borrower the money so they could collect the principal and interest payments and keep the note securitized. If you are paying on time and values are holding or increasing. your mortgage note gets sold and resold for huge profits. Banks make fortunes off borrowers who make every payment on time through the life of a loan.
In 2008’s real estate market, banks stand to lose $0.35 to $0.60 on the dollar for any foreclosed property. This is a gigantic loss, and the banks today would rather collect a lower payment than none at all and own a vacant home. Declining property values combined with constricting lender guidelines and adjusting interest rates have resulted in the modification boom. Basically, when you owe much more on your home that it is worth, you are in deep trouble. No one is going to buy a home for 15% – 30% above market value and no lender is going to refinance that property.
Your mortgage is the collateral for the note that a bank lends a borrower. Realistically speaking, no bank would originate a note lending at over 100% of the value of the property. Even lending at 100% is unreasonable. Millions of Americans have taken out high LTV loans out in markets like Orange county, that were at the time appreciating but now have rapidly depreciated. Then, when the borrowers ARM adjusts and he can no longer make the payment a bank will try to refinance, only to discover there is little chance.
Most believe their only option is to foreclose. Since they cannot make the payments, sell, or refinance, what other options are there ? The first option that a bank gives are a short sale, deed in lieu of foreclosure, or forbearance agreement. With so many Orange County homeowners wanting to keep their home and a vast supply of empty homes, the banks are forced to re-examine their strategy. In today’s economy, banks are willing to modify loans to keep people in their homes. They can reach many more homeowners by doing so and continue receiving monthly mortgage payments.
For more information about Loan Modifications in Orange County, CA., please give our Attorney based Loan Modification affiliate a call at: (888) 530-1212, or drop them an email at: Info@CaLoanModAttorney.com
by Vincent Bindi on September 21, 2008
Currently there are 94 detached home currently list for sale. Of these, 35 are pre-foreclosure Short Sales and 1 is a bank owned REO. That is a total of 38% of the total inventory is a property in financial distress. The Median price for the Short Sale and Bank Owned REO listings is $559,000. The Median price for the none Short Sale/Bank Owned REO detached home listings is $745,900.
In the past 90 days, there were 55 detached homes that sold and closed that were not Short Sale/Bank Owned, and the Median price of these 55 homes was $565,000. In this same period of time, there were 32 detached homes that sold and closed, which represents 37% of the total sold. The Median price of these 32 detached homes was $529,400.
Today, there are 134 Condos listed for sale in Aliso Viejo, CA. Of these, 67 of the active listings are Short Sales (50%), and 12 are Bank Owned REO condos (9%). The Median priced Condo for the 79 Short Sales/Bank Owned condos is $309,400, and the median price for the none short Sales/Bank Owned condos is $394,900.
In the past 90 days, there were a total of 70 Condos that sold and closed escrow that were not Short Sales/Bank REO’s. The median price of these 70 condos was $375,000. In addition, there we 75 condos that sold and closed in Aliso Viejo that were Short Sales or Bank Owned REO’s. The median price for these 75 condos was $295,000. Of these 75 sold condos, 38 were Short Sales and 37 were Bank Owned REO’s.
If you would like more information on homes or condos for sale in Aliso Viejo, feel free to visit our website at: Search OC Homes for Sale. If you would like an email list of all Short Sales or Bank Owned REO homes for sale, visit: www.OCBargainHomes.com
by Vincent Bindi on September 19, 2008
A Loan Modification (sometimes called a Loan Mod), is the altering of one or more of the characteristics of a loan and/or its terms.. Loan Mods are usually the result of the borrowers inability to make payments in the agreed upon time-frame or because the property is worth less than the borrower owes. This means that a Orange County homeowner has taken out a loan to purchase a property, or refinanced a cash out loan,$ and in not able to repay it in accordance to the pre-set schedule designed when the loan was taken out. They then fall behind on their payments and are faced with a few tough choices…. foreclosure, deed in lieu of title, short sale or loan modification. The only option of this list that does not force the Orange County homeowner to lose their home is the Loan Modification.
For homeowners who can document the ability to repay the loan in a reasonable and sustained capacity, the bank will allow certain changes to be made in the loan. These loan modification changes include temporary interest rate reduction, permanent interest rate reduction, adding an interest only option, stretching of amortization, principal balance reduction, a forbearance agreement or a combination of changes.
A loan mod is a negotiation between the homeowner and the bank. The goal of a loan modification is to change the amount of payment to a level where the borrower can consistently make their mortgage payment as well as pay other bills. Banks do not want a mortgage to consume an entire monthly budget. They will take the homeowners entire budget into consideration ie; car payments, cell phone, utilities, credit cards payments, etc. Keep in mind that bank’s loss mitigation department will take into account all necessary expenses to live a normal while still maintaining a reasonable mortgage payment.
Our professional real estate company specializes in loan modifications for Orange County homeowners. We have association with an Attorney who has worked the some of the Nations largest banks. For questions or consultation regarding a potential loan modification, call our Attorney based Loan Modification affiliate: 949-388-3396 or email us at: Info@CaLoanModLawyer.com
by Vincent Bindi on August 18, 2008
The definition of a luxury home varies considerably in the eyes of the beholder, especially in a city such as Laguna Beach we offers many beachfront and ocean view properties. One persons luxury home may be a small home with a spectacular Ocean view, but the same property may be considered a small cottage to another person. Therefore, we define a luxury home in Laguna Beach to be any single family home priced higher then $2 Million. This may seem like an arbitrary definition, but price usually encompasses all of the desirable (and undesirable) features of a property.
Currently there are 174 detached homes priced less then $2Million in Laguna Beach, and there are 180 homes priced higher then $2 Million. Of these 180 luxury homes for sale in Laguna Beach, the Median priced home is $3,250,000, and comprises of 3 bedrooms, 4 baths, and comprises of 2,690 square feet and boasts of Ocean and Catalina Island views. The Average priced home is $5,437,854 with an average size of 2,814 square feet, resulting in average price per square foot of $1,346/SqFt. The most expensive luxury home currently for sale in Laguna Beach is a 3 bedroom, 3 bath oceanfront estate on Circle Dr, that boasts of panoramic ocean views.
To view all luxury homes currently listed for sale, click on the link above. This display will show all details of these fine estates currently listed for sale, including multiple photos, asking price, bedrooms, baths, detailed property descriptions, maps, arial views and more. To view any of these fine estates for sale, feel free to call us at: 949-388-3396 or email us at: Info@OCRealtyGroup.com
by Vincent Bindi on July 22, 2008
Balboa Peninsula is a narrow piece of real estate with white sand beaches and perfect waves on one side, and the yacht-filled, picturesque Newport Harbor on the other side of the peninsula. The peninsula acts as a jetty enclosing the Newport Harbor and its islands. About three miles long, the Peninsula consists of all the contiguous land east of 45th Street in Newport Beach.
The Balboa Peninsula is a subsection of the city of Newport Beach, California, and is comprised predominately or residential detached homes and estates, with some attached condominiums and commercial real estate. Most of the business is concentrated along Balboa Boulevard where it meets Pacific Coast Highway, McFadden Place, and Main Street.
Newport Beach as well as Balboa Peninsula is home to some of California’s most luxurious real estate. In the 1st half of 2008′, there have been 21 properties sold and closed in Balboa Peninsula. Ranging in price from $950,000 for a 2 bedroom, 2 bath, 1,123 square foot condo on Oceanfront Ave boasting of an Ocean view. On up to $10,150,000 for a beachfront estate comprising of 5 bedroom, 5.5 bath, and 4,000 square foot estate, located on Oceanfront Dr., with sweeping Ocean views. The median price of the 21 properties sold is $1,460,000 and the average price is $2,736,761. The average price per square foot is $1,026 and the average days on market is 65 days. Below is a more detailed assessment of the current market values of various types of properties in Balboa Peninsula:
- Non-Ocean View and Non-bayfront detached homes range in price from $1.1 Million up to $5Million, and sell in the range of $830/SqFt up to $950/SqFt.
- Ocean view and/or Bayfront detached homes range in price from $3Million on up to $30 Million, and sell in the range of $1,300/SqFt to $2,500/SqFt.
- Attached Condominiums range in price from $700K to $3 Million, and have been selling in the range of $650/SqFt to $750/SqFt.
We are featuring a new listing of a fine home comprising of 4 bedrooms, 3 baths, 2,878 square feet of living area with many fine upgrades. The property is located on Plaza Del Sur and is priced to sell. For more details of this fine home, plus pricing, visit our website at: www.ViewBalboaHomes.com
The word “Balboa,” came from the famous Spanish explorer, Vasco N
by Vincent Bindi on July 10, 2008
The oceanfront estate lots being developed at the Strands are southern California’s last beachfront development. The gate guarded Strand development consists of 118 homesites and boasts of 1.5 miles of direct coastal frontage. This 121 Acre community includes 68 Acres of parks, open space and coastal trails. The subdivision fronts Strand Beach and will include a 9,000 SqFt. Beach Club and a 90 room hotel and Spa. The Beach Club is planned to have a state-of-the-art exercise room, swimming pol, , spa and beachside dinning. The Strands is located just north of Dana Point harbor and south of the Ritz Carlton.
The first phase of Lots were recently sold for an average of $5.9 Million. Lot owners will be free to build just about nay home of their dreams for there are no restrictions on the architectural style of the homes. There are a few construction restrictions though, such as the requirement of using high quality materials such as real wood and authentic brick. These ocean view lots average size is about 10,300 square feet. The remaining lots are expected to be sold by the end of 2008′. Home construction to be started soon and most all of the homes to be constructed by 2011.
The Strands is divided into two areas, the South and North Strand. The North Strand features oceanfront lots average around 9,000 to 10,000 SqFt, and allows for 2 story homes and an extra subterranean level. The South Strand, is built above the promontory and boasts of dramatic views, allows only single level homes on larger lots ranging in size from 12,000 to 14,000.
The Strands had a interesting history. The Strand property was originally owned by the Chandler family who were in the newspaper publishing industry. From the 1950’s through to 1988, the property was used as a Mobile Home Park. For many years the Chandler family tried to obtain City approval for a large 370 home subdivision, which was rejected by the City of Dana Point. Then in 1998, land developer Sanford Edward purchased the property and in 1999, the City of Dana Point agreed to the current development plans of 118 homes and 62 Acres of open space.
If you are interested in more information about Strand lots for sale in future phases, feel free to email us at: Info@OCRealtyGroup.com or call: 949-388-3396.
by Vincent Bindi on June 24, 2008
There are currently 37 Oceanfront and Bayfront detached homes for sale, and 7 Oceanfront/Bayfront Condos for sale in Newport Beach, CA. The lowest price detached home is a bay front property on Finley Ave currently listed for $1.575 Million (subject to change) and incorporates 2 bedrooms, 1 bath, and 1,030 square feet of living area, with a dock for 2 boats. The highest priced property is currently for sale $38,500,000, and this French neoclassic Bayfront estate located on Harbor Island Dr incorporates 10 bedrooms, 12 baths, 18,000 square feet of living area on a 1/2 Acre lot. The Median price waterfront home is $5 Million and the Average price water front home is $6.47 Million. The average price per square foot is $1,752/SqFt, although this indicator is of little use for the Land price is a large percentage of the value of the typical property.
Currently there are 2 waterfront properties under contract in Escrow in Newport Beach, Ca. One estate is located on Lido Island on Via Lido Nord. This bay front property consists of 3 bedroom, 2 baths, and includes a private dock, and the asking price was $4,299,000. The other estate is located on Balboa Peninsula on Oceanfront Ave. This Ocean Front property incorporates 5 bedroom, 5.5 baths, 4,000 square feet of living area and a private roof top deck with sweeping ocean views. The asking price of the property was $11,575,000.
In the past 90 days, there have been 3 bayfront/oceanfront properties that have sold and closed escrow. Based upon the number of homes Pending in escrow, and 3 homes sold and the current inventory of 37 homes, the Months of Inventory is running at about 30 months for Newport Beach water front property currently. The basic details on the 3 waterfront properties that sold along with the sales prices are listed below:
- Lido Island – Via Lido Soud – 5 Bdrm, 3 Bath, 2,580 SqFt, Bayfront with dock – $3.9Mil
- Balboa Pen – Bay Ave. – 5 Bdrm, 3 Bath, 2,358 SqFt, Bayfront with dock – $4.9Mil
- West Newport – Oceanfront Ave – 5 Bdrm, 5.5 Bath, 2,744 SqFt, Oceanfront – $6.2Mil
Of the 7 bay front and ocean front condos currently listed for sale in Newport Beach, Ca., the lowest priced property is $1,095,000 for a 1 bedroom, 2 bath, 1,200 square foot condo on Lido Park Dr. in the Cannery Village high-rise. The highest price condominium is a beachfront 3 bedroom, 3 bath, 2,000 square foot with sweeping panoramic views of the beach and pacific ocean. The current asking price is $2,695,000 and is located on Balboa Peninsula on Balboa Blvd. The Average priced waterfront condo currently for sale is $2.05 Million, and the Average Price per square foot is $1,125/SqFt.
In the past 3 months, there were 2 waterfront condos that sold and closed escrow in Newport Beach. The lowest priced unit was a 3 bedroom, 2 bath, 1,561 square foot ground floor beach-front condo facing the back bay. The other sold unit is located in West Newport in Newport Marina Villas on Coast Hwy. This bayfront property incorporated 3 bedrooms, 3 baths, 1,849 square feet, and sold for $1.375,000.
For a private email list, with updates, of all oceanfront and bayfront properties listed for sale in Newport Beach, Ca. , visit our website at: www.OCJustListed.com, or give us a call for a private showing at: 949-388-3396 (NOTE: All prices stated in the article are subject to change at anytime.)
by Vincent Bindi on June 21, 2008
Currently there are 5 oceanfront single family homes for sale that are in Dana Point, CA. Three of the homes are beachfront properties located on the sand on Beach Rd in Capistrano Beach, and are detailed as follows:
3 Bdrms, 3 baths, 2,506 SqFt, YrBuilt 1954…. $3.3Million
3 Bdrms, 4 Baths, 4,400 SqFt, YrBuilt 1987…. $7.199Million
5 Bdrms, 6 Baths, 4,700 SqFt, YrBuilt 2008… $11.9 Million
The fourth home is a 4 bedroom, 7 bath, 6,378 square foot waterfront estate built in 1973. This beachfront is located in the Niguel Shores tract on Seaward Isle, and the asking price is $13.5 Million.
The 5th oceanfront estate for sale incorporates 5 bedrooms, 7 baths, 6,100 square feet which is nearing completion of construction. This fine estate is located in the new ultra-luxury community called Monarch Estates on Strand Beach Dr., and boasts of a panoramic ocean view.
There are also 2 attached waterfront Condos for sale in Dana Point, CA. One of the Condominiums for sale incorporates 3 bedrooms, 3 baths, and 1,830 sqft of living area. This oceanfront Condo is located on E. View Point Dr. in the Dana Bluffs tract, and the asking price is $1,075,000. The other waterfront condominium is a 3 bedroom, 3 bath, 2,637 square foot unit. The bayfront condominium has an asking price of $2,775,000 and is located on Green Lantern St.
At the time of this article, there is one single family oceanfront estate that is under contract in escrow in the Monarch Bay tract of Monarch Beach. This waterfront estate comprises of 5 bedrooms, 6 baths, 5,682 square feet with a spectacular ocean view. The asking price of this estate was $7.995 Million and is located Monarch Bay Dr.
For more information on beachfront – oceanfront real estate for sale in Dana Point, or Monarch Beach, feel free to contact us at 949-388-3396 or email us at: Info@OCRealtyGroup.com
