Zen's Laguna Niguel and Orange County Real Estate Blog

Zen Ziejewski

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FORECLOSURE Notices are DECLINING in Orange County

With hundreds of thousands of California homeowners in foreclosure a

stalemate continues as only a small percentage reach the end of the process through cancellation or sale and the time to foreclose increases. Once again the raw numbers fail to tell the story on foreclosure activity due to the difference in number of business days in January (19) vs. December (22). On a daily average basis foreclosure activity increased on all fronts.

“With delinquent payments rising, foreclosures slowing, and foreclosure alternatives failing,” says Sean O’Toole, Founder and CEO of ForeclosureRadar.com, “it appears the foreclosure crisis will be with us for many years to come”.

 

 

After significant declines in December, Foreclosure Filings were slightly lower overall in January. With only 19 days that notices could be recorded in January, compared to 22 in December, foreclosure notice filings actually increased on a daily average basis with Notice of Default filings increasing by 9.5 percent from December, and Notice of Trustee Sale filings increasing by 10.3 percent.

 In ORANGE COUNTY alone the amount of Notice Of Defaults' filed from JANUARY 2009 compared to JANUARY 2010 dropped approximately 25%.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

'ALL CASH' HOME PURCHASES ON THE RISE !

Cash deals accounted for 28.9% of all Southern California home sales in January; the highest level in the 22 years !

  • All-cash transactions accounted for an average of 13.9% of all home purchases since 1988, DataQuick reported.
  • Such transactions trended upward in recent months, however, due to the continued impact of the credit crisis and competition among homebuyers for lower-priced homes.
  • In addition, home sellers tend to prefer all-cash deals to avoid the risk that a lender’s appraisal will kill the sale by coming in lower than the purchase price.
  • DataQuick tracks the number of buyers who appear to be paying cash for a home by counting the number of transactions in which there are no records of a purchase loan.
  • DataQuick reported also that home flipping trended higher in January, when 3.5% of the homes sold had been through a prior transaction within the previous six months.
  • Regionwide, median home prices were $271,500, up 8.6% last month from the year before but down 6.1% from December.
  • Southern California recorded 15,361 home sales , up 0.9% from the year before but down 31.2% from the previous month.

HAPPY VALENTINE'S DAY TO ALL !

Wishing everyone a Happy and Blessed Valentine's Day this weekend !

Spend the day with that SOMEONE SPECIAL and be thankful you have them to LOVE !

Thank you to all my CLIENTS and FRIENDS for all your support ~

ZEN

www.zensellshomes.com

 

Orange County JANUARY Bankruptcies Highest of the Decade

reported by Jan Norman, small-business columnist, OC Register

Bankruptcy filings by Orange County individuals and businesses hit a decade high for January, according to new data from the U.S. Bankruptcy Court Central District of California.

Source: U.S. Bankruptcy Court

Source: U.S. Bankruptcy Court

The highest monthly number of filings ever in the Orange County court in Santa Ana was 4,214 in October 2005 just before federal bankruptcy laws changed making it more difficult to discharge all debts through the bankruptcy courts.

But January’s filings are a continuation of the troubles Orange County residents and small businesses have had since the housing bubble burst and the long and deep recession that pushed the local unemployment rate as high as 9.8%. In December it was 9.1%.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

Orange County Coast Cities Seeing INCREASED Distressed Sales

Most of our south Orange County Coast cities went against the grain and reflected the opposite of the countywide trend by seeing an increase in distressed properties for sale.

Two weeks ago, Dana Point’s percentage of short sales and foreclosures was 24.7%, which has risen just slightly to 24.8%.

Laguna Beach also saw a slight increase in distressed properties. The percentage of short sales and foreclosures rose from 9% two weeks ago to 9.3%.

CityListedDistressed%
Dana Point 234 58 24.8
Laguna Beach 300 28 9.3
San Clemente 343 107 31.2
Talega 61 35 57.4

San Clemente, however, saw a decrease in distressed properties for sale. The city’s stock of distressed properties for sale dropped from 32.8% to 31.2%.

Talega’s distressed properties increased too - two weeks ago the percentage of distressed homes in this large community was 52.4%, which has risen substantially to 57.4%.

Countywide, the percentage of short sales and foreclosures dropped from 34.8% to 33.7%.  That does not mean that there are fewer distressed homes coming on the market; rather, it means that the increased demand is eating up the active distressed inventories. Over the past month, the number of distressed and non-distressed homes to hit the market has been increasing, but many are going off the market as pending sales just as quickly as they are coming on.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

WOULD YOU WALK AWAY FROM YOUR MORTGAGE ? Let's discuss it....

As reported by Marilyn Kalfus with the OC Register, February 7, 2010

When a home’s value falls below 75% of the amount owed, a homeowner starts to think seriously about just walking away, even if he or she has the money to keep up payments, according to a recent story in the New York Times.

By the Fall of 2009, it states, about 4.5 million homeowners had reached that threshhold, with their home’s value dropping below 75% of the balance. By June, that number is expected to increase to 10% of all homeowners with mortgages.

A mortgage broker from Scottsdale, Ariz., tells the Times that he’s already advised some 60 people to walk away. An economist argues that people should be held accountable for the contracts they sign. And the story spells out the perils, including botched credit scores and how that could affect the view of, say, prospective employers. 

What do you think? Would you strategically default if you found yourself  underwater by that amount?

Please feel free to comment and I'd like to open up a discussion regarding this situation.....

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

ATTN: RENTERS.....It's Time To Buy !

Are you looking for the perfect Orange County home ?.....You may want to step up and BUY soon....

According to the NAHB: (National Association of Home Builders)

  • Tight credit is hampering efforts to start new rental housing construction, which takes about two to three years to complete.
  • A large number of “Generation Y” professionals, or professionals born in the mid-1970s or later, are expected to enter the housing market soon, as are other types of newly formed households. Apartments and condos often are the most attractive form of housing for this group.
  • Industry experts expect the number of tenants to outstrip the supply of rental units by mid-2011, with increasing shortages through 2014.
  • This shortage likely will increase rents by as much as 8% to 10% per year in 2011 and 2012 and by 4% to 7% per year through 2015.

Apartment developers warned recently that a shortage of rental units could hit the nation as soon as mid-2011, driving rents up by as much as 10 percent a year.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

 

If CALAMARI....Come to Dana Point Harbor

If you like CALAMARI, grab a fishing rod and head down to Dana Point Harbor !

Ninety anglers on two boats from Dana Wharf Sportfishing out of Dana Point harbor Monday night hauled in 530 Humboldt squid, including the largest one – a 55-pounder.

"What was most shocking to me was the volume of squid," said Dana Wharf Capt. Jack VanDyke. "There is a tremendous amount of squid out there. I just had to go out to the canyon where the (water drops) from 100 to 600 feet. The squid are just hanging out there."

Dana Wharf's telephone lines have been jammed with anglers angling to get on boats and the business says it will put as many boats as needed to get the fishermen out for the daily squid runs at 5:30 p.m., as long as the Humboldt squids are in local waters.

The Register's Sciencedude Gary Robbins reported on his blog that the influx began Friday, which is also when the phones at local sportfishing outlets started ringing off the hook.

Chris Cunningham, manager of Davey's Locker Sportfishing in Newport Beach told Robbins that the catch could be a one day thing. Humboldt squid — which are also called jumbos — are a here today, gone tomorrow creature. (Read Robbins' full post about the catch for anglers in Newport Beach.)

Dana Wharf officials recommend taking only as many Humboldt squid that you can consume.

There is no limit on the number of squid a person or boat can catch, said spokeswoman Roxann Pope.

"Dana Wharf promotes taking only what you will eat which is generally 4-5 per person," she said. "Dana Wharf also only allows cleaned and prepared squid to be removed from the boat. We clean the squid on the boat so the carcass can be cast back into the ocean to feed the bottom dwellers. This helps to ensure people only take what they'll eat."

Another trip on Sunday took 39 anglers in Dana Point harbor, who also caught a full boat of the Humboldts.

And, 41 anglers, who went on a special squid run on Saturday with Dana Wharf, reeled in more than 200 Humboldt squid – all weighing 20 to 30 pounds each, according to a news release.

"We had our limits within two hours – the giant squid were everywhere," Dana Wharf Capt. Corey Lieser said.

The squid are fished for at night, when it's easier to lure them with lights, the news release said.

"The light causes the plankton (consisting of drifting organisms) the squid feed on to shine, which causes the squid to rise to the surface to feed, making them easier to catch," said Lieser in a statement.

The Humboldt squid have been showing up in our local waters since 1983, according to Dana Wharf Sportfishing.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

 

 

SELLERS: Thinking of Offering "Seller Carryback Financing?"

BEFORE YOU DO, you should know the definition:

An owner carry-back is when a seller takes a portion of their equity in the form of a second trust deed, deferring payment of that equity until a later date and collecting interest payments from the buyer. 

After speaking with various mortgage brokers in Orange County; it has been mentioned that there are INCREASING amounts of OWNER FINANCING/CARRYBACK loans on homes offered for sale.  Since the financial institutions have halted 2nd Trust Deeds for the most part; some SELLERS are stepping up to help sell their homes.

 

The guidelines for owner carry-backs are pretty simple. 
 
FHA
: First, they are not allowed on new FHA financing; however a seller with an existing FHA loan may sell to a buyer who assumes the existing FHA mortgage and the seller may carry back a portion of the remaining equity. 
 
Conventional: Fannie Mae and Freddie Mac allow seller carry-back financing as part of a purchase transaction.  The maximum combined loan to value can be up to 95% depending on FICO score, but many lenders put on an overlay reducing the maximum to 90%.  The maximum first trust deed, or primary mortgage, from the lender cannot exceed 80% loan to value.  So the typical transaction is 10% down, 10% seller carry-back and an 80% new primary mortgage.
 
The terms on the note to the seller must have a minimum monthly payment of interest only.  The interest rate must be “consistent with the market”, i.e. no zero interest notes.  The loan term must be for at least five years, if shorter the buyer must demonstrate ability to pay off the loan as part of the approval.  For example if a seller carries back a $50,000 for three years, the buyer must show they will have at least $50,000 in liquid assets after the close of escrow.  The note must be recorded through escrow as part of the transaction.
 
Benefits: To the buyer the benefit of an owner carry-back is the opportunity to avoid mortgage insurance without putting 20% down.  Or if the buyer is anticipating a large amount of cash in the near future, perhaps the closing of another property, settlement of an estate, annual bonus, the buyer can pay off the note early and have a smaller remaining primary loan.
 
To the seller the benefits are supplemental income from the interest payment and/or securing a buyer for their property in a difficult market. 
 
Risks: The biggest risk to the buyer is the balloon payment that is typical with seller carry-backs.  Will you have the funds or ability to pay off the note when due in 5 years? 

If you have any questions on this option, please call me: (949) 922-2200

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

 

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