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Price: $698,000
Style: Bungalow, Salt Box
Bed: 2 Bath: 2
Stories: Three or more levels
Year built 1963
View of Catalina Island, City Lights, Coastline, Ocean, Panoramic vista
ASqFt 1,020
ALotSize 2,500
Parking: Concrete Driveway, Single Door Attached Garage
For more information on this property, click here.
Contact Nick Roshdieh today if you are interested in this property!
-Nick Roshdieh
eVantage Real Estate
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Price: $425,000
Style: Carriage House, Condominium
Bed: 2 Bath: 3
Stories: Three or more levels
Year built: 2004
View: Park or Greenbelt view, Peek-A-Boo View
ASqFt 1,600
Parking: Attached Garage, Direct Access, Guest Parking
For more information on this property, click here.
Contact Nick Roshdieh today if you are interested in this property!
-Nick Roshdieh
eVantage Real Estate
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Price: $529,000
Style: Single Family Residence, Ranch, Traditional
Bed: 5 Bath: 3
Stories: Two Levels
Year built: 1996
View: Tree top view
ASqFt: 2,100
ALot Size: 3,814
Parking: Direct Access Garage, Driveway, Attached Garage
For more information on this property, click here.
Contact Nick Roshdieh today if you are interested in this property!
-Nick Roshdieh
eVantage Real Estate
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The new Obama administration has committed $50billion of Federal tax dollars towards the Home Affordable Modification Program (HAMP). As of December of 2009′, over 650,000 homeowners nationwide have applied for and been placed in trail modifications. And of these 650,000 applicants, only 2,000 homeowners have been granted permanent Loan Modifications. That is a success rate of less than 1% !
In December, the Obama Administration issued a warning to the major banks to increase the rate of processing and approvals of loan modifications. But some recent studies have shown that high rate of denied loan modifications may not be the solely the fault of the major banks. There were three basic reasons found. One, many homeowners are unable to make the payments offered during the 3 month trial period, for high unemployment continues to erode the economy. Two, some homeowners realize that even with a loan modification, they are still going to owe much more than their home is worth. In Orange County, reports have shown that 1 in 5 homeowners are upside down on their mortgage loan. When offered the 3 month trial loan modification, many borrowers still decide that the home is still too much of a financial burden on their family. The 3rd reason was that many Banks have reported that in some areas of the country, the have received less than 25% of the required paperwork from borrowers in order to make a financial loan modification analysis.
Hopefully, the pressure being placed on the major banks will help to improve the acceptance rate of HAMP loan modifications. Probably in an effort to hedge its bet though, the federal government has recently rolled out its new and improved HAFA program, late last year. This HAFA program was created to provide incentives to banks to accept short sales or a deed-in-lieu of foreclosure. A homeowner must be declined for a HAMP loan modification, before they can be considered in the HAFA program short sale or deed-in-lieu. For Orange County homeowners desiring more information, click on one of the links regarding Loan Modification or Short Sales.
The real estate market has been severely affected by the 3 effects of the national mortgage crisis, local recession and the California real estate correction. Prices in Santa Ana, on average have dropped about 40% since the peak in pricing in the Spring of 2006′.
Many Santa Ana homeowners who bought their home from 2004′ until 2007′, using leveraged loan financing, now find themselves with mortgage debts more then the home is worth (ie: upside house). Mortgage Banks today do not want to foreclose, and would much rather conduct a short sale instead. Some lenders are now offering cash for cooperation to homeowners as an incentive to cooperate with short sale, versus letting the home go to foreclosure.
This major market correction can be seen in the large number of Short Sale listings. Here are some of the statistics. Currently, there are 161 attached condos that are Active Short Sales listed for sale, ranging in price from $57,000 on up to $599,000. There are 117 Short Sale condos that are Pending in escrow. In the past 90 days, there have been 46 Short Sale condominiums that have sold and closed escrow. As comparison, one year ago at this time, there were only 21 Short Sale condos that closed escrow during the same 3 month period. One more interesting statistic, is that for the 46 condo units that closed in the past 90 days, there were 84 failed Short Sale closings during the same period of time in Santa Ana. This represents a failure rate of 65% on average. As a comparison, our team of experts (ShortSalesASAP Group) closed more then 94% of our Short Sale listings.
For detached homes, there are currently 166 Short Sales Active for sale in Santa Ana. There are 173 detached homes that are pending in escrow that are Short Sales. And in the past 3 months, there have been 77 single family homes that have sold and closed as a Short Sale. Unfortunately, there were also 161 homes that failed to close the Short Sale, which represents a success rate of just 32%. Conversely, our Team of specialists has a Short Sale success rate of over 94%.
If you are a home owner whose mortgage debts are more than your home is worth, or if you are having difficulty keeping up with your mortgage payments, feel free to contact one of our experts to learn about the advantages and disadvantages of a Short Sale. We can be reached at: (949) 388-3396, or email us at: Info@ShortSalesASAP.com
Mello-Roos is a special tax that is imposed on Aliso Viejo real estate within a designated community. These Mello-Roos districts are created to raise public financing through the sale of bonds, for the purpose of paying for public improvements and services for that community. The services may include water lines, sewer treatment, drainage, streets, schools, electricity, parks, etc. The Mello Roos tax is used to pay for the bonds used to pay for these improvements.
The passage in 1978 of Proposition 13 restricted local governments ability to pay for capital facilities and services by increasing property taxes. In 1982, Senator Henry Mello and Assemblyman Mike Roos enacted the Community Facilities District (now called Mello-Roos) to provide local governments with an additional way to raise needed funds. Below are common questions and answers regarding Mello-Roos…
How much is Mello-Roos for Aliso Viejo Real Estate? It can vary from about $400 per year on up to about $2,500 per year dependent upon the community and the lot. A few home communities in Aliso Viejo have no Mello-Roos at all.
How do I estimate the Mello-Roos when buying a Home? During the Escrow process, the Seller will deliver a disclosure which will state in writing the exact amount of the Mello-Roos fee. You can also estimate the Mello-Roos prior to making an offer on a home. You take the quoted Tax Assessor yearly Tax amount, and subtract the Prop 13 portion of the tax from this amount. The Prop 13 Tax can be estimated by multiplying 1.15% times the previous sale price stated in the tax rolls. The remainder is a reasonable estimate of your yearly Mello-Roos payment.
How is the Mello-Roos Tax paid? The Mello-Roos is included in your normal tax bill which is billed to you twice per year.
Does the Mello-Roos tax go up when I sell my Home? No, unlike the Prop 13 portion of your property tax, the Mello-Roos portion of your property tax does not change when you sell your Aliso Viejo home. The MelloRoos tax can increase dependent upon the community facilities agreement by about 1% to 2% per year, but it does not have anything to do with the sale price of your home.
Can I deduct Mello-Roos payments from my Income Tax? Most Tax accountants are of the opinion that the Mello-Roos tax is not legitimate income tax deduction. Please consult with your Tax Advisor for final determination.
How long does the Mello-Roos tax stay in effect on my Home? Typically, the Mello-Roos assessment is written for about 15 to 25 years dependent on the community facilities district. Although, many of the districts have the right to renew the Mello-Roos tax if needed.
How do I compare the value of a Home with Mello-Roos against a Home without? Prior to making a decision to buy a home, here is a simple way to compare the total monthly cost of the home with Mello-Roos versus a home with no Mello-Roos. Say you are considering buying either a home in Aliso Viejo with yearly Mello-Roos payment of about $1,200, or possibly buying a home in say Mission Viejo with no Mello-Roos. To compare the prices of these homes, I take that $1,200 yearly Mell-Roos payment, divide by 12 for the monthly payment of $100. A $100 per month payment is approximately equal to a $20,000 mortgage in today’s interest rates. Therefore the home in Aliso Viejo is actually costing you about $20,000 more as compared to the home you’re considering in Mission Viejo. If the home in Aliso Viejo is still a bit more desirable at a comparative price $20,000 higher than the home in Mission Viejo, then buy it, if not, buy the home in Mission Viejo.
If you would like to view all homes listed for sale in the Aliso Viejo MLS, please visit our website: Aliso Viejo Real Estate
This is another case study of a successful short sale closing in Yorba Linda, CA. Recent studies have reported that only about 20% of all short sales in California actually sell and close escrow. The average closing rate for Orange County is around 30%. Our team of short sale experts closes over 94% of our short sale listings. This article will outline some of the reasons why.
This Yorba Linda home was purchased by an investor back in 2005′ for $550,0oo, and was a smaller detached home. They owner put down 20% and had a small negative cash flow, but was experiencing attractive appreciation for the years of 2005′ and 2006′. In 2006′, they had a new appraisal completed and acquired a HELOC loan, and used the cash to purchase another rental property with better cash flow.
Investments were doing well until about the 2nd quarter of 2007′, when the income of the property owner declined. Then several rental properties went vacant for several months, and the owner fell behind on this Yorda Linda rental home. They attempted to re-finance but the property would no longer appraise in order to obtain the needed Loan to Value (LTV). The owners contacted out team in late 2007′ and inquired about a short sale.
We worked with the property owner in gathering the needed documents and hardship letter. Our negotiations team then package the short sale documents and sent them to the loss mitigation of the 1st and 2nd banks. After 4 weeks of document tracking, expediting and negotiations, we obtained preliminary approval to conduct the short sale. Our listing coordinator then placed the property on the market for sale, and listed in the Orange County MLS.
Within2 weeks, we received an offer to purchase from a qualified buyer and the final negotiated price was within $3,000 of the approved short sale price. We then packed this offer, and re-submitted the short sale package to the loss mitigation management department. Upper level bank management reviewed the new offer for 3 weeks, and gave us final short sale approval. During the course of the final negotiations, we were able to obtained sufficient funds to pay to the HELOC loan in order for them to grant the Yorba Linda property owner a completer release of the unpaid loan balance.
Our high rate of success partially hinges on our knowledge of how bank management looks at short sale proposals. This gives us an advantage in how to package and structure the offers to purchase. We also have upper management contacts within most of the major mortgage banks.
We are a licensed broker with the California Department of Real Estate. Our services are free to out clients, for we negotiate our fee and are paid by the short sale banks. If you have any questions about short sales, please feel free to call us at 949-388-3396. Or to watch our YouTube video, visit our website at www.FREEShortSalePlan.com
Yes, you read that correctly, in the price ranges of $650,000 and below, most of Orange County is now in a Hot Sellers Market. In the price range of $450,000 and below, the Months of Inventory is a hot 1.1 Months for south Orange County… 2 to 4 months is considered to be a Sellers market, and below that is a hot Sellers market. In contrast, the Months of Inventory for this price range was at 19 months in October of 2007′. The number of homes now in escrow is at 916 properties in the price range of Below $450,000… this Pending Homes total has not been this high since August of 2003′ . Below is a graph of the Months of Inventory for all of the price ranges we track, since July of 2002′.
In the price range of $450,000 to $650,000, the Months of Inventory is at 1.8 months, which is also a hot sellers market. Albeit, about 60% of these sales are either bank owned REO properties or short sales, but these are real sales with real buyers none-the-less. This is resulting in multiple purchase offers within days of listing properties on the market for sale for well priced Bank Owned REO’s and Short Sales.
Where is all of the demand coming from you may ask? Well, it is a combination of investors and first time homebuyers who have been sitting on the fence for the past 4 to 5 years. Investors with cash are buying for they can now get a decent yield with a down payment of 30%. Many investors feel that most, if not all, of the downside risk in the local real estate market is behind us. And many are leery of the stock market, and CD yields are now very low… First time home buyers are also now buying. Fixed interest rates are now at all time historic low, and there is pent up demand from the low rate of sales in the past 2 years. My hats off to their discipline and timing…
The Months of Inventory is a leading indicator, which has been dropping to today’s lows for many months now. Another one of the proprietary indicators that we gather are moving averages of the Price per Square foot for both Condos and Detached homes. This is a lagging indicator, although much more accurate then the Average or Median prices that are quoted in the press. This Price per Square foot indicator has been holding steady now for the past 5 weeks, which is another indication that we have approached the bottom.
The Million Dollar Question is . . . is this the bottom of the Orange County real estate market ? My sense is, if this is not the bottom, then we are very close to the bottom… but, I believe it will be a long drawn out bottom, with no noticeable price appreciation for several years… The reason being - I believe over heated inflation will return in a year or so, due to the recent government policies of flooding the US economy with billions of dollars cash. When this happens, the Feds will raise interest rates to curb inflation, which will put a damper on real estate price appreciation.
Costa Mesa, CA – Seller Short Sale Success Story: This article is a case study for a short sale that our team conducted on a detached home located in Costa Mesa, California. Certain details about this property will not be revealed to protect the privacy of the previous home owner. This single story detached home was 3 bedroom, 2 bath, 1640 square foot home, with 2 car garage, and was built about 60 years.
This ranch style home was bought many years ago, but was refinanced in the Summer of 2004′ for a loan amount of $680,000. Then a 2nd mortgage HELOC loan was also obtained in the Winter of 2005″ for an amount of $140,000. At the peak of the market in mid 2006′, this home had appraised for, and was worth about $875,000. In the past 3 years though, prices have dropped about 35% in Orange county in in most of Costa Mesa.
The homeowner had a severe medical problem and was not able to work full time. They inquired about a loan Modification, but their Debt to Income ratio was to high to qualify for a Lona Mod, given the decrease in income. Also, due to this financial hardship the home owner was having difficulty keeping up with their mortgage payments. They went on the Internet and found us and contacted us inquiring about a Short Sale. The Short Sale process is broken down into 3 Phases as follows:
PHASE A: The Costa Mesa property was first put in our Short Sale Preparation Phase. To start, our team obtains all of the required documents from the homeowner and contact the banks to present our short sale case. Then, our negotiations personnel begins the process of negotiating the preliminary terms, price and conditions of the short sale. Our expert team was able to obtain preliminary approval for the Short Sale from both the 1st and 2nd mortgage banks. This Preparation Phase took about 6 weeks to complete. During that time the home owner lived in the property as usual, and was not bothered by any collection firms, other agents or prospective home buyers. And, due to their hardship, were forced to stop making their mortgage payments and lived rent free.
PHASE B: At this stage, we started the Short Sale Marketing and Sales Phase. Our team markets the property for sale in the Multiple Listing Service (MLS) for a price of at a price of $715,000. After a period of about 3 weeks, we did not receive much interest, so we dropped the price to $675,000. Within 2 weeks later, we received an offer a solid buyer for $620,000. After several days of back and forth negotiations, headed up by our short sale Realtor Nick Roshdieh, we obtained a purchase price of $645,000.
PHASE C: This final Phase of this Short Sale process is primarily the escrow closing and final bank negotiations stage. Here we first gather the signed offer from the Buyer, and package the purchase offer, along with required Short Sale disclosures and Buyers loan qualification paperwork. We submit this updated package to the 1st and 2nd mortgage banks, to conduct the final short sale adjustments of the terms, conditions and costs. After some difficult negotiations utilizing our associate attorney, we got Mortgage Banks to agree to this modified short sale offer. Once we received the bank short sale approval letters, we moved forward with the buyers closing through escrow. The last Phase took about 43 days to complete.
When all was said and done, the entire debt on the home was removed from the back of the home owner. Due to their financial hardship, the home owner was able to live in their property during this short sale process and did not make any mortgage payments payments. They were also able to rent a comparable home for substantially less then what their payments used to be. In addition, the homeowners credit was not as badly damaged as it would have been if the banks had foreclosed. They are now working with our credit restoration affiliate and their credit rating should be repaired to a level where they should be able to buy a home again in the near future. Finally, we were able to convince the 2nd Mortgage HELOC loan to not come after the home owner for unpaid debt, and accept a complete satisfaction of debt for the $10,000 that we were able to negotiate for them. If the homeowner had let this home got to Foreclosure, then the HELOC would have had a legal right to try to come after the property owner for satisfaction of the unpaid debt.
ShortSaleASAP is licensed with the California Department of Real Estate, and we are a Member in Good Standing with the Orange County Board of Realtors. Our services are free to the homeowner, for we are paid by the mortgage bank(s). If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com
This is another successful Short Sale case study for a detached home located in Dana Point, Ca. The details of the homeowners name, address, and exact financial details will be masked to protect the privacy of the homeowner.
This property was sold and closed escrow in March of 2009, via a Short Sale by the OC Short Sale Team. This single family detached home was 4 bedroom, 3 bath, 2,600 square foot home, with 3 car garage.
This roomy house was purchased in August of 2005′, for $975,000 with a 20% down loan with Wells Fargo. 9 Months later the homeowner obtain a equity line of credit (HELOC) loan for $200,000 in 2nd position. The first mortgage was about $780,000 and the total loan debt after the HELOC loan was $980,000. The home went up in value about 5% from the time it was purchased until about springtime in 2006′ and then prices began to decline from there.
Since the peak in the local market in April of 2006′ prices have been dropping about 12% per year for the past 3 years. This drop applies to most of Orange County, but has not as severe in Dana Point. This featured short sale property has declined in value about 27% from the time it was purchased. The homeowner had a financial hardship and a medical sikness in the family, and they were not able to keep up with their mortgage payments.
The first step in our short sale process for this Dana Point property, was to gather all of the required documents from the homeowner. We then packaged these documents and sent them to the banks to present our short sale case. After some tough negotiations, our short sale specialists were able to obtain preliminary approval for the Short Sale. During this short sale preparation period, the homeowner was able to live in the property as normal, with no interruptions from other agents or prospective home buyers. Due to their financial hardship, the family was living in the home without making mortgage payments.
After the preliminary bank approval, the Short Sale marketing and sales effort began. We advertised the property for sale extensively on the Internet and in the Multiple Listing Service (MLS) for a price of at a price of $789,000. After about 3 weeks with no offer, we dropped the price to $749,000. Then again 3 weeks later we lowered the price to $729,000 and received an offer 6 days later. After two counter offers, we negotiated a price between the buyer and seller for $725,000.
This final step was to set up the short sale for escrow closing. After we obtained the signed offer from the Buyer, we packaged the purchase offer, along with required Short Sale disclosures and Buyers loan qualification paperwork. We rushed this information to the banks, and negotiated the final short sale adjustments of the terms, conditions and costs. After some tough discussions with our expert short sale Realtor team, we received the bank short sale approval letters. We then moved forward with the buyers closing through escrow. The last step was accomplished in about 32 days.
After the short sale was completed and the escrow closed, the entire mortgage debt was retired and the homeowner was forgiven from the debt of the HELOC loan. If the home had gone to foreclosure, the $200,00 HELOC loan would have not be retired, and they could have gone after the homeowner for collection. In addition, the homeowners credit was not as badly damaged as it would have been if the banks had foreclosed. They are planning on working with our associate premiere credit rehabilitation firm, so that they may buy another home within a year or less.
The OC Short Sale Team is licensed real esate Broker with the California Department of Real Estate, that specializes in short sales. Our services are free to the homeowner, for we are paid by the mortgage bank(s). If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com
Short Sale Information,