October 15th, 2010
Just when we were starting to think that it was safe out there in the real estate world, and that the foreclosures were moving through the system, we are jolted awake by the news that the banks may not have been on the up-and-up with some of the paper work. GEEZ! What next?
Apparently the signs have been there all along and are based on the fact that some banks have not been able to produce documents showing ownership of the mortgage. Here’s how I understand what happened. Whenever a mortgage changes hands, the new owners are supposed to receive and assignment of the mortgage note from the buyer. During the peak of the real estate frenzy, mortgage notes were sold to investors, assignments were never executed, and the notes were never delivered. The banks, even without proof of ownership went ahead and foreclosed. All was well and good until the foreclosed homeowners began contesting the foreclosures. It appears that there is also evidence that there have been false notarizations and forged documentation. And possibly the bigger issue is that no one really knows how prevalent the missing document problem is at the banks.
Most servicers believe that their internal review process will take up to 30 days to complete. It also does not mean that they are halting the process for homes in varying stages of foreclosure.
It remains a little foggy as to how this will impact our Central Coast housing market. The speculation is that buyers will hesitate to bid on foreclosed properties until they are certain that the foreclosure is legitimate. Banks may pull back lending farther than they have already which will cause a double dip in the credit crunch. Hopefully it will entice banks to move more quickly on short sales. One thing for certain is that it has created more fear and uncertainty in an already ailing market struggling to right itself.
Fortunately for our coastal communities of Morro Bay, Cayucos, and Los Osos, we have experienced fewer foreclosures than some of our surrounding areas.
Tags: Cayucos, Los Osos, Morro Bay
Posted in Central Coast Communities | No Comments »
October 8th, 2010
It’s nice to know that our California legislature has been busy; well, at least in regards to real estate laws the budget is a totally different matter. A number of new laws were passed during the last session which directly impact our Central Coast homes. So that you are in the know, here is a brief recap:
If you are thinking about doing a short sale, you may want to wait until after the first of the year. Effective January 1st, 2011, you can no longer be held responsible for the difference in the short sale and what you owe on a first trust deed. The lender must accept the sale proceeds as paid-in-full and write off the the shortage versus trying to collect or sending you a 1099. The lender can still seek damage for fraud, property destruction or waste caused by the borrow. (Senate Bill 931). Please note, this does not apply to refinance loans….
Thanks to Assembly Bill 1684, it has just gotten tougher for someone to take your property based on possession. (Adverse possession is the occupation or possession of land by a person not legally entitled to it. If continued unopposed for a period specifed by law, such occupation extinguishes the title of the rightful owner). Previously, all they had to do was prove that they had paid taxes for the previous five-year period. Now, they have to jump through more hooops by providing certified county tax collector records showing that all state, county, or municipal taxes have been paid on time for the five-year period along with other documents.
New laws were put in place to protect consumers from real estate fraud. They are pretty extensive and complex (least to me) so rather than try to explain them here, just know they exist and go read the law if you want more details. It is Assembly Bill 1800.
There’s a bunch more including a few on tenant rights. If you want to view them all in their glory, go to www.leginfo.ca.gov.
Tags: Central Coast homes, real estate laws
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September 24th, 2010
I’m going to let you in on one of my little secrets…. Not too many people even know about this but those that do usually keep pretty quiet about it. Sure, they’ll tell you if you ask but typically no one ever asks…
Here’s the secret - this truck sells THE BEST oranges you have ever eaten in your whole life. That’s right. They sell their oranges from the back of a truck. But mark my word, this is no joke - these are the best oranges EVER. Sweet, juicy, perfect! The truck is only there a few hours a week - usually on Friday, Saturday and Sunday. It is about 2 miles east of Morro Bay on the right side of Highway 41. If the truck is there, it is open. If the truck isn’t there, it is not open.
We discovered it quite by accident a few years ago after a long hot day at the beach. We were headed home over the 41. Everyone in the car was hot and just a touch cranky as only a full day in the sun and sand can do. We had run out of water. Atascadero was about 20 minutes away so I was driving like a maniac - ready to be home. When all of a sudden I saw the truck and thought how delicious a good juicy orange would taste. We pulled off to the side and bought a bag. By the time we got home, most of the 10 pound bag was gone.
They do sell a few other fruits, vegetables and nuts but to be quite honest, I couldn’t tell you what. Next time you are in that area, buy some of the oranges. I’ll be happy to split a bag with you anytime!!
Tags: Atascadero, Morro Bay, secret
Posted in Central Coast Communities | No Comments »
September 24th, 2010
Previously, FHA loans were not available on homes that had sold less than 90 days previously (flips). Which meant that it was difficult for investors to sell entry level homes to first time home buyers who wanted to only put 3.5% down. As a result, these buyers were forced out of the market since most of the homes in their price range do not qualify for FHA unless the owner (typically the banks) fix them up. It was never clear to me what the reasoning was for this policy as it didn’t seem to benefit anyone.
Fortunately, FHA has seen the errors or its ways and recently changed this ruling! It is now possible to get FHA financing on recently rehabbed homes. This is great news for the first time home buyers and the entry level home buyers - many whom have limited funds for down payments. They can now take advantage of the FHA 3.5% down loans and get into homes that are fixed up and ready to live in.
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July 4th, 2010
WOW! Today marks the 234th birthday of our great country! Imagine being around for that long. It is definitely a cause to celebrate! And that is just what happens in the darling little beach town of Cayucos. Starting this morning with their infamous parade, then community pancake breakfast, sand sculptures on the beach, and finishing up the day with amazing fireworks from the pier. You better get there early as town fills up and parking is hard to come by.
By the way, Morro Bay is also having a true fireworks show this year after their dismal lazer light show last year. I’ll try to make it so I can give you a review. I’m really glad to see that they are going more traditional with fireworks. There is also the art in the park with some very incredible, creative artists showing their wares. So come out and support them.
This 4th reminds me of what I love about living and working in Morro Bay and Cayucos on the California Central Coast. It is truly an amazing place to live. The people here are friendly and helpful. You can’t ask for a better mix of climates - from the hot north county to balmy SLO to cool beach towns - there is a climate for every mood. You can see just about any and every type of wildlife - whales, otters, deer, wild turkeys, opposums, eagles, red tail hawks, red tail foxes, even bears and mountain lions - the list in endless. Every community is unique which means you can find the perfect fit for your interests and desires.
Sure the overall state and national economy could be better. I’m ready and waiting for that to happen as I’m sure you are too. Eventually, things will turn around. They always do. As my father use to always tell me “Patience is a virtue”… (PS. He didn’t tell me that because I was a patience/calm person)… So I’m practicing my patience, grateful for the beauty surrounding me.
Come visit if you don’t live here and if you do, get out and breathe in our clean air and enjoy the beautiful place we live in!
See you soon!
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April 15th, 2010
Real Estate Investing is not a hobby, it’s a business. Unfortunately, too many people treat it as a sideline and don’t take it seriously. They jump into investing because either they have always wanted to own rental property or because someone told them it was a great time to buy to increase their networth. Seldom do they take the time to think about their strategy.
To be successful over the long term, seriously consider what you are doing and why you are doing it. Have a plan. Be prepared. There are hundreds of different types of properties, multiple ways to hold or unload them, plus thousands of ways to structure deals. The more specific you can be in your goals, especially in the beginning, the fewer mistakes you will make and the more profitable each property will be.
The basic questions to ask yourself BEFORE you start include:
- What type of property are you going to focus on (single family, 1 - 4 plex, multi-plex or apartments, commercial, condos, mobile home, etc)?
- What do you plan to do with the property (rent it, rehab it, wholesale it to another investor, live in it, etc)?
- What is your alternative plan - just in case your first plan doesn’t work (for example, what if you can’t find a long term renter, are you going to do vacation rental?)?
- How long do you plan to hold the property?
- What types of repairs are you willing to do (My general rule of thumb is that I don’t do foundations or roofs)?
- How much do you want to make off each property?
- How are you going to finance the property and any repairs?
- Who are you going to need on your team (title company, lawyer, accountant, contractor, etc)?
- What location/city/area are you going to target for investments?
When I first started investing, my plan was single family homes on the Central Coast that I could rehab and sale within 30 days and walk away with a minimum of $30,000 after expenses. I did not do roofs or foundations. Most of the work was done by myself and my son. I hired plumbers (for big plumbing jobs) and electricians and an experienced tile person. I worked directly with one particular title company. Because I was very specific in the types of properties I was looking for, I could quickly walk into a for sale property and tell if it met my criteria. As a result, I walked away from more properties that I made offers on.
The final thing to consider when investing is what kind of reputation you want to build. To that end, always try to create win-win situations, don’t be greedy, walk away from dishonest people and shady deals, remember the “Golden Rule” of treating people how you want to be treated, and pay your contractors quickly and accurately. Always remember that your reputation makes or breaks you!
Tags: -1, investor, real estate investing
Posted in Investors | No Comments »
March 21st, 2010
If you are looking for some amazing music, nice people, and great wine, check out the D’Anbino Tasting Room in Paso Robles. Located right next to the Paso train/bus depot.
I had the fortunate opportunity to be invited to a No-Zin Dinner event at the winery. And I have to tell you - the food was delicious, the wine was very good but the highlight of the evening was meeting the D’Anbino family and listening to the family band play. They are UNBELIEVABLE! Unfortunately, they only play every so often. It’s worth joining their wine club just to have the opportunity to hear them or at least befriend a current wine club member…
The family band members have won all kinds of music awards, many of which are hung around the tasting room. And you definitely have to hear Sharon sing - she has an amazing sultry sound and her voice is so clear. WOW!!! You can check out their current event schedule here: http://www.danbino.com/events.html
If you want to enjoy a beautiful tasting room with some super nice and hospital people, you just have to check out this winery! Guaranteed it will be a highlight of your week!!
Tags: D'Anbino, Paso, Paso Robles, tasting room, winery
Posted in Central Coast Communities | No Comments »
March 18th, 2010
That IS the question. In the short sale arena, information is critical. When you are deciding if a short sale is right for you, the more information you have the better you will be in the long run.
Having the right information can impact you financially, your family’s future and your own piece of mind. So before you start the process, get the information you need to make the right decisions for your family.
To that end, there are four different people to talk to when you are faced with a foreclosure or shortsale option:
- A Real Estate Lawyer
- An Accountant
- Your Lender(s)
- An Experienced Realtor
Foreclosures and shortsales have different implications and you need to know how those are going to impact you today as well as tomorrow. Contrary to what you sometimes here in the media, short sales do impact your credit score in a similar manner as foreclosures. Some lenders are going after the sellers in shortsale situations in an attempt to collect the ’shorted’ monies. Some lenders don’t do shortsales if they are a 2nd or 3rd position. A good realtor can help you decide on a price, understand the market and understand the short sale process.
Once you gather as much information as you possibly can, you will be in a better situation to decide if a short sale or a foreclosure is the best option for you. Regardless of the stress, fear or frustration you are under, now is not the time to bury your head. Ask the questions, get the information and then move forward with the best decision you can make in a difficult situation.
Tags: foreclosure, lender, Short Sale
Posted in Short Sales & Foreclosure | 1 Comment »
March 18th, 2010
I stole that title from a friend because it completely epitomizes the short sale process. It’s it great! The only thing short about a short sale is the name. Unfortunately, short sales are definitely on the rise.
A short sale is when a homeowner sells their home for less than what they owe the lender. Because the lender gets to make the final decision as to the price and buyer, the process takes much longer than most people think it should.
Plus there can be lots of ‘gottchas’ along the way that can totally derail a sale. Probably first and foremost is the length of time it takes to get a short sale approved. You and your buyer need to be prepared to go the distance.
Shortsales are very complex with lots of issues that need to be addressed, reviewed, and handled. Your best bet is to use a real estate agent that is trained in short sales and has closed a few. You want someone who knows the ins and outs and will give you honest timely information. You also want someone that you can work closely with as you will be talking to them on a regular daily basis.
Short sales are not for the faint of heart. Be down right sure this is the best route for you to go AND that your lender is in agreement before you start down that road.
Tags: lender, Short Sale
Posted in Short Sales & Foreclosure | No Comments »
August 9th, 2009
Talk about FUN! Oh my gosh! We had the most wonderful time at the California Mid-State Fair Jazz Night.
This was my first time and I will guarantee you it won’t be the last. I’ll also guarantee you that if you haven’t gone and sat at a table, you seriously have to do it - but only if you want to have a great time with friends, food, music, and new acquaintences!
Here’s the funny part, I am not even a real JAZZ lover. I like it but for me it is one of those things that I can take or leave. The funnier part is, I’m pretty sure the music was awesome - I do like Peabo Bryson a lot but the evening was really more about interacting with your friends than the music - well at least for me. I remember stopping talking a time or two to listen to the music but that really was secondary.
So if you haven’t gone to the Mid-State Fair Jazz night in Paso Robles, here is how it works - there are 3 options - purchase a table, sit in the bleachers, or sit in the chairs up front. Do it right and get a table! With a table, you get to decorate it and bring your own food. Some tables are very elaborate, some are whimsical, some are plain, and some are very elegant (we went for the plain look). It’s a blast just walking around and looking at the creativity of all the people that come. Amazing what some of them come up with! I only wish I had some of that creativity!!
We are definitely doing it next year! Come join us!
Tags: Mid-State Fair, Paso Robles
Posted in Central Coast Communities | No Comments »
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