Demand For Single Family Rental Are High

 

Although real estate prices have fallen dramatically for the past 2 or 3 years, rents are rising. High demands for single family rentals are on the rise due to the volume of foreclosures and short sales. No matter what the reason for these families losing their homes they still need places to live. Consequently the demand for single family rentals is high.

For a lot of these families leaving their homes, they are not necessary wanting to leave their neighborhoods. They are looking to keep the kids in the same schools and keep their friends. For these new renters the rents are less than their old mortgage payments, they are relieved from maintenance work and they are happier to be out from under the massive payments.

In the past’s multi-family units, i.e. apartments, duplexes were easy to rent, but with so many more renters looking to live in SFR’s this is starting to change. We are starting to see the demand “good” single family property rentals in nice neighborhoods go up.

Investors will benefit from this information because they understand prices have been dropping on properties and the demand for good rentals has been going up. Investors are confident that they can rent for a good rate and have an easier sale when they are ready to sell after the prices rise.

San Pedro | Sinkhole Closes Paseo del Mar

Paseo del Mar Mark SpectorPaseo del Mar may be closed between Western Avenue and Weymouth for quite a while as city engineers try to find the cause of the sinkhole that started this summer.
From the Daily Breeze:
“We’ve been monitoring it since early July,” said Lawrence Cuaresma, district engineer with the Los Angeles Public Works Department.
On Monday, officials determined a sinkhole did exist.
Underneath the 2-by-3-foot, bowl-like depression in the street, Cuaresma said, a hole “expands outward” below the roadway. The area is just west of Weymouth Avenue near Fromhold Field.
Both sides of the street in the section generally between Weymouth and Western avenues will be closed pending further investigation and repairs.
“We’re in the investigating mode,” Cuaresma said.
The cause has not been determined, he said. But there could be multiple potential sources of the problem, as there are two storm drains, a sewer line and a water line that run beneath the road that takes traffic along the southern ocean cliffs between San Pedro and the Palos Verdes Peninsula.
The water line has been turned off, he said, with area water being routed through other lines.
Underground cameras and other equipment will be used to try to pinpoint the problem, he said.

New Home Owners Problems & Soluctions

So you got that dream home you have been trying to buy for years, you get all moved in and the boxes are unpacked, the kids have started their new schools and everything seem to be going fine. Of course you have a list of a few things you would like to change in your new home but money is tight and you start a list of “To Do’s” so as your savings accounts start to recover you will know right where to start.

But as you will find out as a home owner, something will breakdown and need repairing. This will always happen at the worst time, when you just don’t have time to deal with the problem or when your funds are still low and the last thing you need is a BIG repair bill. Well with any luck your Realtor made sure before you closed escrow a “Home Warranty” was bought for your first 12 months of ownership. This warranty will cover most of your standard systems in your home like Heating, Plumbing, Garbage Disposal, Oven/Range/Cook-top, Electrical Systems etc. Now I typically use Suzy Pelshaw with Fidelity National Home Warranty and with her company the home owner only pays a $55 service fee and they will come out and do the repair. But their are many companies out there.

Suzy and I have put together a nice booklet about some basic Problems And Solutions that will help homeowners with problems like the Refrigerator isn’t working – the Dishwasher will not turn on – the Garbage Disposal Drains Slowly – my Forced Air Heater will not turn on…

You can download the book for HERE

Is Going Green Just A Trend?

Going green has become more than just a trend, especially when it comes to home remodeling or improvements. Buyers are looking for homes
with energy efficient and costsaving features.

Before you begin any improvements, consider these five tips.

1. Demand for green housing has been growing—46% of buyers would like a green home, according to an August 2007 report by the National Association of Realtors (NAR) on home buyers’ preference.

2. Before purchasing any of these items for your home, check with your local gas and electric company for possible tax credits and rebates. Also check with federal, state, and local government agencies.

3. Estimate your potential savings by using one of the many online free energy audit calculators.

4. If you need to buy appliances consider ENERGY STAR® rated appliances. You can get more detailed information about the ENERGY STAR® program on their web site as well as a list of products that qualify for rebates.

5. Contact your local Real Estate Professional. Their experience and local knowledge can help you decide which home improvements will be best for you.

Home Maintenance Is The Best Way To Keep Your Home In Good Shape

Preventative maintenance is the best way to keep your house in great shape, reduce the risk of unexpected repairs and imprive the odds of selling your home at the best possible price when that time should come. In addition, regular maintenance of your home’s systems and appliances will increase their effciency and lower operating costs, as well as ensure longer equipment life.

New Law Requires Carbon Monoxide Detector in CA. Homes

As of July 1, 2011 the Carbon Monoxide Poisioning Provention Act (Senate Bill SB-183) requires all single-family homes with an attached garage or a fossil ruel source to install carbon monoxide alarms within the home by July 1, 2011. Owners of multi-family lease or rental dwellings, such as apartment buildings, have until January 1, 2013 to comply with the law. Get all the information below, just leave your first name and email and I will send it right out.

Underwater Home loan A Vexing Dilemma

mark spectorIf CoreLogic’s data are anything at all use about 11.1 million homes in america (23.1 per cent of all mortgaged properties) were underwater in the October-December quarter. This implies 10.8 million properties, up from 22.5 %, through the July-September quarter. Even though the amount of underwater mortgages had dropped in the last three quarters, it had been mainly due to much more number of home foreclosures. This has place numerous in a quandary, keeping them from offering their properties in an currently poor housing market.

Generally, underwater home mortgages increase when ever home values drop. In December 2010, home values had been the lowest since the housing bust. In a regular market, about 5 per cent of householders could be underwater.

According to one estimate, about 2.4 million individuals have less than 5% equity in their properties, raising the threat perception should prices drop in their region. Nevada noted the worst case scenario, with a harmful property equity. Trailing strongly behind are Arizona, Florida, Michigan and California, with nearly half of property owners having mortgages underwater. Alternatively, Oklahoma had the smallest percentage of underwater mortgages through October-December quarter at 5.8 per cent. 

At present, home sales are dampened largely by underwater home mortgages. Householders who wish to sell their properties refuse to incur a loss, while banking institutions usually do not agree to a short sale. This means a mortgage company permits a borrower to sell the property for less than the specific amount of the mortgage.

Underwater mortgage is among the vexing troubles ailing the united states real estate markets. Regardless of the Home Affordable Modification Program (HAMP) created by the government in 2008, the situation continues to affect the country. Apparently, state attorney generals are making concerted efforts to solve the problems related to improper mortgage foreclosures with big mortgage companies.

What Is A Short Sale And When Do They Happen

Mark Spector RealtorA short sale {occurs} when a person’s property is sold for less than what a person presently owe on the property. If your price of the short sale is close to the market value it is feasible that your finance company may allow a short sale to occur.

Lenders may allow short sale offers or even requests for short sales whether or not a Notice of Default hasn’t been issued. Given the unparalleled and overwhelming quantity of losses which mortgage lenders have experienced mortgage failures that partly brought on the financial meltdown of 2007-2010, they are actually a lot more inclined to accept short sales than any other time. 

Lenders usually have loss mitigation departments which assess potential short sale transactions.  The vast majority of loan companies have pre-determined standards for such transactions, however they may be open to offers, and their willingness will varies.  A lender will generally figure out the amount of equity  (or lack of equity), by analyzing the most likely selling price through an  appraisal, Broker Price Opinion (BPO), or Broker Opinion of Value (BOV).

With regard to “under-water” individuals who owe more on their home loan than their house is worth and are having problems selling, the short sale provides an opportunity for them to avoid foreclosure as a result.

Individuals thinking about a short sale should know about this risk and ask every party involved in the process (Realtor, lender, third party) what can and will be done to protect against a deficiency judgment.  Seek advice from legal counsel within the state where the house is located to ascertain specific pitfalls.

CNBC  reported that a few lenders have been accused of participating in fraud during the short sale process.  The fraud entails lenders in second position demanding  kickbacks  in the form of cash payments from the home buyer or real estate professional, and that are not disclosed anywhere on closing paperwork or  HUD-1  statement.  This is in violation of  RESPA  rules, that require disclosure of such payments.

Home Loan Rates Jump Over 5%

Home loan rates jumped again recently, with the average rate on the standard conforming 30-year fixed home loan rate climbing to 5 percent, based on Bankrate.com’s weekly nationwide review. The typical 30-year fixed home loan has an average of 0.40 discount and origination points.

To determine home loan rates in your neighborhood, visit http://www.bankrate.com/funnel/mortgages/.

The standard 15-year fixed home loan raised to 4.37 percent, as well as the bigger jumbo 30-year fixed rate did as well, climbing to 5.58 percent. Variable rate home loans are also higher, with the typical 5-year ARM leaping to 3.95 percent as well as the standard 7-year ARM rising to 4.36 percent.

The typical 30-year fixed home loan rate hit 5 percent for the first time since May mainly because the latest run-up in home loan rates continued. On Nov. 3, home loan rates have been at a record low of 4.42 percent. This week, solid retail sales, a far more bullish economic outlook, and loads of government red ink had bond investors commanding higher yields. Home loan rates tend to be closely related to yields on long-term government bonds.

The last time home loan rates had been over 6 percent was Nov. 2008. During that time, the typical rate was 6.33 percent, meaning a $200,000 mortgage would have carried a payment per month of $1,241.86. With the typical rate now 5 percent, the monthly payment for the similar size loan would be $1,073.64, a cost savings of $168 per month for a homeowner mortgage refinancing now.

SURVEY RESULTS
30-year fixed: 5.00% — up from 4.89% last week (avg. points: 0.40)
15-year fixed: 4.37% — up from 4.26% last week (avg. points: 0.38)
5/1 ARM: 3.95% — up from 3.85% last week (avg. points: 0.45)

Bankrate’s national weekly home loan review is performed each Wednesday from data supplied by the top 10 financial institutions and thrifts within the top 10 markets.

For a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com.

Foreclosure | Search All Listed Foreclosed Properties

Your in control, this foreclosure search provides all available foreclosure listings that match your personal search criteria.
Track and save your favorites foreclosures. To busy to log on receive Quick Alert emails as new listing that match you personal search criteria come up for sale or track the sold foreclosures.
No unwanted sales calls or pressure to buy.

If you are thinking of buying or selling a home, condo or investment property call me Mark Spector 310-430-0633