Archive for August, 2007
What’s in Your…… Homeowners Insurance Policy?
August 30th, 2007 categories: Buying San Diego Real Estate, San Diego Real Estate
Have you reviewed your insurance policy of late? Probably not. After closing on the purchase of your home, (how many years has it been now), you put the policy away feeling all nice and secure that you have it and go on about your life. Do you think you are fully covered against most of the even more common perils that might befall you and your home?
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What Makes A Winning Marketing Plan and Who is in Control of it?
August 29th, 2007 categories: San Diego Real Estate, Selling San Diego Real Estate
It is time to sell the old place and you are interviewing local REALTORS hoping to hear that your home will fetch a “pie in the sky” price.
Doubtful that will happen but let’s take a look at why you might have that expectation.
The agent wants the listing and most will tell you the market today is more normal ( level pricing with lower appreciation) and prices have adjusted downward from the lofty exaggerated prices of a couple years ago. The agent will tell you they have a great marketing plan and as you can see they will be doing a lot of advertising and will ultimately accept that too high of price you forced on them. So the process begins.
1st weeks open house, ads in the newspaper, brochure box on the sign post, nice property brochure and the end of the first week results, no offers. The agent said it will take a while, so patience is to be accepted.
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Are We About To See A New Definition of ” Redlining ” ?
August 28th, 2007 categories: Buying San Diego Real Estate, San Diego Real Estate
Will the current credit crunch lead to creating a new or quasi type of redlining by the major lenders and those that invest in the loans?
Is it possible that whole categories of borrowers, loan types and credit profiles are going to suddenly be shunned or priced so high that they will soon be out of reach?
If that happens, how will 2nd home purchasers, non-owner occupieds, high rise condos and people with minimal cash available fare in the seeking and obtaining of affordable mortgages?
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California Advocacy Groups Call for Moratorium on Foreclosures
August 22nd, 2007 categories: San Diego Real Estate Legal
Consumer advocates meeting the with the California Senate Banking committee this week are asking for a moratorium on all home foreclosures in the state. They warned that California is facing a tidal wave of foreclosures over the next year and that California is ground zero for problem nationwide.
They reiterated that more than 46,00 home were in foreclosure and that there were 76,732 more mortgages that are currently delinquent.
Witnesses warned the banking committee that the numbers would be rising as the loan adjustments take place on the adjustable loans. They advised that Homeowners appeared paralyzed and dont understand that they may have some options. They are not contacting their lenders and some of the lenders are saying that they cant reach the consumers to even discuss the explosive issue.
There is an anticipated jump widely forecasted in the 4th quarter of this year that will continue through the fall of 2008.
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Even Losing your home in forclosure may not be the end of the nightmare.
August 21st, 2007 categories: Local San Diego News You Can Use, San Diego Real Estate, San Diego Real Estate News
We are all pretty much now used to the 1099 shortfall , whereby the lender gives the seller of the short sale a 1099 reflecting the amount of the debt relief, which may be taxable as ordinary income.
Had you ever heard that the lender can do the same for foreclosed property owner if the value of the foreclosed property is deemed less than the market value?
In 2005 and 2006, the Sub-Prime loans that were made to weak borrowers are and will be putting many households in jeopardy of either a potential short sale necessity or facing foreclosure. Because there was so little down payment required, the value of many of these homes may be worth less than the amount owed.
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Drop In Home Sales of America’s Finest City Lowest of Its 6 Neighboring Counties
August 17th, 2007 categories: Buying San Diego Real Estate, Local San Diego News You Can Use, San Diego Real Estate, San Diego Relocation, Selling San Diego Real Estate
San Diego is doing better than all of its neighboring counties. July Sales figures for San Diego County had only a 13.3 % drop from the same time in 2006. Notably it is the smallest in the 6 neighboring counties.
The best news for San Diego county property owners is that the median price dropped only 2.2% and then numbers show just a small drop of the 2006 median price of $500,000 to $489,000.
Considering all the hysterical news of foreclosures and the ensuing potential for short sales this is some really positive news.
Data Quick analyst John Karevoll, attributes at least part of the market slowdown we are experiencing to the financial markets. Some well known lenders have all but stopped processing loan applications. Hopefully, the market will resolve those issues and the inconvenience to homeowners and home buyers will be short lived.
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Will Ben Bernanke Come Charging In On His White Horse And Save the Day…….and Our Market
August 12th, 2007 categories: Buying San Diego Real Estate, Local San Diego News You Can Use, San Diego Real Estate News, Selling San Diego Real Estate
Facing his 1st big crisis since he took over the reins 18 months ago, Federal Reserve Chairman Bernanke has a huge decision to make.
To keep pumping money or lower the short term interest rates.
A chief strategist for Charles Schwab said of the current situation,”Financial Crises, in the past when not accompanied with a recession have been good for the market but goes on to say that if this crisis deteriorates much more, we are going to suffer through a much more difficult market period”.
The greed from the Hedge Fund operators brought about the current nightmares found of the sub-prime market and if as it appears that Fannie And Freddie can’t help out, it is going to fall to Bernanke to lower the rates to try and re-stimulate the housing markets. Read the rest of this entry »
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In-Group Coming Our In Large Numbers…………….
August 11th, 2007 categories: Buying San Diego Real Estate, Local San Diego News You Can Use, San Diego Real Estate, San Diego Real Estate News, San Diego Relocation, Selling San Diego Real Estate
That’s right, the In-Group is pouring out of their other home styles for a new lifestyle home in a Downtown Hi-Rise. They are appearing at extravagant ultra Chic parties sponsored by Hi-Rise Developers to attract the rich and the not necessarily so famous ” life style” oriented Buyers for the Hi-Rise Lifestyle in Downtown San Diego.
Just last month, One Smart developer spend over $500 per guest on a Chic Night time party to lure their best potential buyers.
The developer in an interview recently said ” We are not dealing with the sub-prime borrowers. It allows us to to establish a buzz among the right people”. The ” right people” at this party included 90 buyers who had already closed escrow, scores of potential buyers and assorted VIP’s.
Invitations to this party were engraved on Lucite and when they arrived the guests were also given other tokens of the developers esteem.
From the extravagant food and specialized beverages, band selection and the entertainment, the environment was comparable to Chic Hollywood parties with all the bling and glamour.
How about seeing a few Cirque de Soliel style performers rappelling off the side of the building. Now that’s entertainment Grand style.
One invited guest said this was one of the most fabulous opening parties ever done in San Diego. A comment from a major PR firm representative also invited said that events like also serve to keep buyers from cancelling their sales contracts and convincing on the fence hesitant buyers to buy. It all demonstrates that there are many Buyers seeking the active life styles associated with living the Chic lifestyles. One thing for certain, with lots of competition and so much for Buyers to choose from, the Best Opening Party may be yet to come.
Whatever the reason, Buyers are demonstrating a zeal for the New Life-Style being afforded by the Downtown San Diego Developers. Whats not to like? All the comforts of Urban Styled Home Interiors with so many added benefits. The proximity to the Gaslamp Quarters Night life, Shopping, Convention Center,The Bay, Seaport Village, and the downtown locations, maybe soon to be considered a Destination for the In-Group, just seems to have it all.
The new Stylings are true Urban Chic.
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Your FICO Score May be Being Sabotaged……..Is it?
August 3rd, 2007 categories: Buying San Diego Real Estate, Local San Diego News You Can Use
Your FICO Score may be being sabotaged by your credit card company and your loan borrowing costs can be adversely affected by your reported credit card limit or lack of reported credit card limit.
If your credit card company does not report your credit card limit, it can definitely cause your FICO score to be lowered. Your FICO score in turn determines your loan borrowing costs.
You FICO score can be affected by as much as 80 points by your credit card company failing to report your credit limit.
Assume you can get an increase of of just 41 points on a lets say 659 FICO score and it can save you approximately $219 in monthly payments on a $300,000, 30 year fixed loan.
This example in detail would look like this: If you have a FICO score of 659 points and want a $300,000 loan, you would qualify for a 30 year fixed rate of approximately 7.68%. With that same loan at a 700 point ( 41 points higher ) FICO score, your 30 year fixed rate on a $300,000 loam amount would be 6.59%. That would net you a savings of $219.00 per month.
Fair Isaccs assigns a heavy weight of 30% of your entire score to utilization of available credit. See my post from July 2nd, 2007 Out with the Old FICO Score and In With The New. If for example you have a $5000 credit limit and you are carrying a $4500 balance, you have a 90% Utilization Rate. The FICO scoring system deducts points for high ratios.
If on the other hand, you owe $500, then your utilization rate of 10% and FICO rewards extra points for that. They rate that much higher for your moderate and responsible use of credit.
When a creditor ( credit card company) fails to report your limit, FICO can not compute the ratio. If the system doesnt ignore that credit line, then it automatically computes the highest balance as the credit limit and gives shows a 100% utilization and the FICO score is lowered.
Example: On a credit card where the creditor fails to report the credit limit and lets say you owe $1250. You would be utilizing 100% of your limit and points off your score would be deducted. You would look like a higher risk borrower and your credit score would drop significantly.
In deference to this revelation, Credit cards companies say they hide they hide their best customers from the prying eyes of competitors and will likely change their business practices as millions of its customers have been affected.
Note to Consumers: This post is about a practice and not about a specific company. If you have concerns, check out your individual credit reports to be sure that your credit card companies are properly reporting your credit card limit.
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