Real Estate Information

Come down and join us for fun-filled days with your horse! The "Fun in the Sun" All Breeds Horse Show offers a variety of classes that include: Halter, English, Western, and Reigning events. This is a wonderful opportunity for horse lovers of all ages to come out and see many different breeds of horses competing for prizes. The event is open to the public and there is no charge to spectators. Registration will be taken at the McCoy Equestrian & Recreation Center in Chino Hills.

The McCoy Equestrian & Recreation Center is located at 14280 Peyton Avenue in Chino Hills. It starts at 9:00 am and goes to 3:00 pm. For more information email  jdale@chinohills.org.

/kh

As people go through the mortgage process today, I believe that they wonder if their lender has gone insane. Lenders ask for documentation repeatedly, constantly updating, asking for further clarification and explanation for everything. Income, credit, assets and appraisals are scrutinized at a level unseen in my 25+ years. It almost seems like they are trying to find reasons NOT to lend.

But, I assure you, that is not the case. The only way lenders can stay in business is to lend money. It is what funds the operation and pays for salaries, rent and paper clips. Lending is what creates the value of the company. No closings, no revenue, no company.

So why the perception of over-documentation and over analysis when we know the lenders have to make loans? This is the reality of a post-subprime world. Lenders got too liberal and under-documented files and forgot the primary role of underwriting (judging a borrower’s ABILITY and WILLINGNESS to repay the loan) as they approved files. And now, the pendulum has swung back to a very conservative stance. Common sense seems to have been replaced by a “Cover Your Butt Mentality”.

No one is immune. Appraisers error on the side of lower valuations and heightened criticism of a home’s condition.  Underwriters labor over pay stubs, tax returns, bank statements and credit information. Closing agents meticulously examine title and closing documents. Each of them has learned that their mistakes, miscalculations, or errors in judgment (no matter how minor) can result in a loss of their job, a bad loan, and/or monetary damages to their companies.

So, today I just wanted to counsel Chino Hills home buyers. Your lender WANTS to make your loan. However, understand that they have been burned by borrowers, burned by their bad judgment, burned by moronic industry trends of the past. Lenders are going to be a little gun shy. If you can prove that you are willing and able to repay the loan, lenders have lots of money available at incredible (once-in-a-lifetime) rates. When you think your lender is asking for too much, know it’s because they want to say “yes” AND know that their decision is both a good and defendable one.

Article from KCM Blog

/kh

Foreclosures and short sales are common these days due to the current real estate market.  However there are some misunderstandings and myths to short sales that are simply untrue.  Below are some of the top misconceptions about a short sale and the clarification.

• short sales can take up to a year to close. This is simply not true. It can take 7-10 days for the lender to acknowledge receipt of the complete short sale package, which consists of personal seller documents and related real estate items, including the buyer's short sale offer. Once a negotiator is assigned it can take an additional 30 to 45 days for a BPO or appraisal. After this has been completed usually another 2 to 3 weeks for management / investor review and short sale approval.
• If you purchase a Chino Hills short sale, you will end up paying too much.  Some listing agents may set a short sale below market value, this is a tactic used to attract multiple offers. Remember that a listed price on a short sale is fabricated, because you won't know how much a bank will accept until the offer is submitted. However, most banks will consider a price at a minimum of 90% of market value.
• Lenders of a short sale wont accept a discounted payoff. Many sellers are often surprised to learn that in markets where prices have fallen over a 5-year-period, a home might be worth 50% or less of its original value when the seller bought it. Lender know about these declining markets and will do their own research about value and typically come to the same conclusion. The value of the home is not based on the amount of the mortgage; it's based on recent comparable sales.
• Short Sale Sellers Must Be in Default Before the Bank Will Approve a Short Sale. The lender will approve a short sale based on the seller's hardship and the value of the home. Many sellers may struggle to make the monthly mortgage payment, but have not fallen behind in their payments. It is true that sellers in default receive immediate attention, but a seller can also pay a mortgage payment on time each and every month and still qualify for a short sale.

/kh

Selling your home can be a challenge with the housing market slow and the economy sluggish, as there is such a competition out there with the new home foreclosures and the falling prices.  However, there are a few things you can do that will help you to sell your home in a slow market, quickly and efficiently.  Here are some tips to help you to get your home sold!

1. Find an agent who is right for your market.  Your first plan of action should be to locate an agent with proven results with sales. Keep in mind you should also work with someone that you feel comfortable and confident with.at has a good track record with sales in your market range and neighborhood. Good sales stats in your price bracket demonstrate that the realtor knows what buyers are looking for and how to move property similar to yours. A great agent can help you move your home, even in a tough market.

2. Research and understand your market. Understanding the ‘comps’ in your area will help you reach a realistic asking price and get a better handle on the competition. Ask your realtor to provide this information and also take opportunities to visit open houses for homes that are comparable to yours. You can learn a lot about staging, pricing and what is appealing to buyers.

3. Keep up with repairs and maintenance. Don’t hesitate to make necessary repairs and maintenance to your home when you are ready to sell. You don’t have to undergo major remodeling or expense. Simple updates like fixing broken steps, touch up painting and keeping your lawn mowed and flower beds cleaned out will really go a long way in making your home look move-in ready.

4. Be flexible. From having your home ready to show at a moment’s notice to your willingness to negotiate, the key to selling your home in a slow market is flexibility and responsiveness. Going the extra mile for prospective buyers can really make a difference in getting more people through the door ready to make an offer.

5. Add value. Remember that you are competing with short sales and foreclosures, so any extra value you can add to your home can make it more attractive. Whether it’s an appliance, patio furniture or a simple cost concession, small items can add up to big pluses when prospects are evaluating the total value of your home.

Help prospective buyers see what a great value your property is by getting it noticed.  Keep looking for ways to help your home stand apart from all the others in the market!

 /kh

Foreclosures and short sales are very common with our current market where it’s at.  There are a few misconceptions and “facts” about short sales that are s

1.    short sales can take up to a year to close. This is simply not true. It can take 7-10 days for the lender to acknowledge receipt of the complete short sale package, which consists of personal seller documents and related real estate items, including the buyer's short sale offer. Once a negotiator is assigned it can take an additional 30 to 45 days for a BPO or appraisal. After this has been completed usually another 2 to 3 weeks for management / investor review and short sale approval.

2.    If you purchase a short sale, imply not facts.  Below are a few misconceptions about a short sale as well as the clarification about it! You will end up paying too much.  Some listing agents may set a short sale below market value, this is a tactic used to attract multiple offers. Remember that a listed price on a short sale is fabricated, because you won't know how much a bank will accept until the offer is submitted. However, most banks will consider a price at a minimum of 90% of market value.

3.    Lenders of a short sale will not accept a discounted payoff. Many sellers are often surprised to learn that in markets where prices have fallen over a 5-year-period, a home might be worth 50% or less of its original value when the seller bought it. Lender know about these declining markets and will do their own research about value and typically come to the same conclusion. The value of the home is not based on the amount of the mortgage; it's based on recent comparable sales.

4.    Short Sale Sellers Must Be in Default Before the Bank Will Approve a Short Sale. The lender will approve a short sale based on the seller's hardship and the value of the home. Many sellers may struggle to make the monthly mortgage payment, but have not fallen behind in their payments. It is true that sellers in default receive immediate attention, but a seller can also pay a mortgage payment on time each and every month and still qualify for a short sale.

/kh

When you sell your Chino Hills home for less than you owe on the property, that is considered a short sale.  They have become a popular way to go so that the lender can escape huge foreclosure fees and because short selling is thought to help the borrower save their credit score, to an extent.  short sales do not guarantee that the lenders will forgive the remaining balance due, but some lenders do choose to accept it as is.

A deed in lieu of foreclosure is a deed instrument that a distressed borrower offers to the lender, transferring all interest in the property to the lender in order to satisfy a delinquent loan and avoid foreclosure. An advantage of a deed in lieu is that it releases the borrower from all debt on the defaulted loan. Both parties must agree to the transaction voluntarily. As with short sales, a deed in lieu agreement is less costly to complete for the lender and does not hurt the borrower’s credit as much as a foreclosure.

The short sale process is complex and takes a long time to complete. Additionally, many short sales fail to close after months of paperwork and negotiations. A deed in lieu of foreclosure is a simpler process, and may be more attractive to lenders than a short sale. The bank or other lending institution is able to take control of the property and the sales process, including the ability to set the sale price.

If you feel that foreclosure is creeping up on you, it is very important that you do your homework and research all of your options with your lender.

/kh

One of the hottest topics in residential real estate is staging a home for sale. With the economy in the shape it is in, it is very challenging to sell your home for top dollar. Staging is showcasing your home in the absolute best light possible.  You need to draw the buyers’ attention to your home’s best features. And carefully divert their attention from the less than perfect features.

In short, staging is creating visual “eye candy” that emphasizes your home’s positive features. It’s part art, part science--and all marketing. It can involve everything from fresh paint to clever carpentry, new lighting to new window treatments. And don’t forget the borrowed (or rented) furniture to define and enhance each room!

A big question in staging is should you do it yourself or hire someone to do it professionally.  Here are two staging tips that every home seller can do themselves:

• Clear it out. You have stuff--lots of stuff. And your house is overloaded with all that stuff. Go through each room and get rid of the clutter everywhere you see it. Your rooms will look bigger, more restful, and more inviting. And all you did was pick up!

• Clean it up. Make sure everything shines inside and out, from windows, floors and countertops inside to the deck, garage and yard outside. Pay particular attention to the kitchen and bath. A little well-applied elbow grease will go a long way in selling your home. And it’s free!

Do these two simple things, and you’re already ahead in the staging game.

But should you keep going and stage other aspects of your own home? That depends on whether you have the eye, the skill--and the objectivity. Can you put yourself in the buyer’s shoes and see your home as the buyer will see it--positive points and negative points? Are you prepared to tackle those negatives? Do you have the “designer’s eye” for color and other design elements? Do you have the technical skills to complete improvements?

When done correctly, staging can help you sell your Chino Hills home quickly and for top dollar.  Ask your real estate agent for more tips and they can also recommend you a professional if needed!

/kh

Many times home owners have the option of either doing a short sale or going through foreclosure. Here are a few benefits to the homeowner in the event they choose a short sale:

• On the credit report, only late payments on the mortgage show up. After the sale of the home, the mortgage will be reported as paid or negotiated. This could lower the homeowner’s credit score by as little as 50 points if all other payments have been made on time. The effect of a short sale can be as brief as a year to eighteen months.
• A short sale is not reported on a credit history. There is no specific reporting item for short sale. Typically the loan is reported as ‘paid in full, settled’.
• A short sale on its own does not affect most security clearances, whereas a foreclosure does.
• A short sale doesn’t pose a challenge in the employment field, as it is not reported on a credit report.
• In some successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner, (i.e., payment of the shortfall or the difference between what was owed and what the bank received.)
• Under the Mortgage Forgiveness Debt Relief Act of 2007, if a deficiency is forgiven or cancelled, and the home is a principle residence, it is worth less than $2 million, the tax on the deficiency will be forgiven. This benefit applies to homes that have either been short saled or foreclosed.

/kh

Make plans this weekend March 5th or 6th to take your children to Barnes & Noble at 1:00pm for Story Time!

There will be a much loved special guest, Peter Rabbit, for story time in the Hundred Acre Woods. Head over to 3625 Grand Avenue in Chino Hills with your kids for a fun filled afternoon.

/kh

With the current financial state, tighter credit-card restrictions, and anxious lenders, having strong credit is more important than ever. If you are planning to purchase a home in the near future a strong credit score is necessary in order to secure a good mortgage. Experts recommend that a credit score of around 700 is the minimum you need in order to get a loan with decent rates.

Even if you have had a bumpy credit past you can start right now with steps to help improve your credit and get you on the right road so you can purchase that dream home!

1. The first step is to know where you stand.  If you haven't already seen your credit report, it is vital that you obtain it now. You can get a free copy from annualcreditreport.comfrom each of the three credit bureaus -- Equifax, Experian and TransUnion.

2. If you do find mistakes on your credit report it is vital that you dispute them immediately. The process in which you dispute these errors is not a quick one, it can take up to 45 days for claims to be investigated. Disputing the errors may be time consuming but if you have incorrect information on your report if could be costing you important points on your credit score.

3. Work to lower your debts. While this may be easier said then done, if you lower the ratio of your outstanding debt to your credit limit it will help tremendously. If you're a long-standing customer with a good history, ask your current credit-card issuers to raise your limits. A good rule of thumb is to keep your balance below 30% of your limit on each card.

4. Don't apply for additional credit unless absolutely necessary. When you apply for new credit, an inquiry is made on your credit report. Lenders look to see how many inquires have been made to your credit, too many requests are unfavorable.

5. It's best if you can pay your bill in full each month but if not be sure you at least pay the minimum on time. Late payments will lower your credit score, and typically opens up the possibility that your lender will charge you a higher rate. Lenders look at your payment history and if it shows that you are consistently late they may choose to deny you new or additional credit.