• Do you owe as much or more than your home is worth?
• Are you behind in payments or facing foreclosure?

These are common questions that we are asked EVERY day. Our Short sale team of experts are here to handle all of the interactions with your lender(s) so that you may lower your stress and start planning for the future.

 **Here are some benefits of our short sale program**

 -Your property is sold “AS IS” condition which means you make no repairs!

 - No Equity is required for us to negotiate a short sale on your behalf

 -We will put together your hardship package to submit to your Lender(s)

 -You will be working with a team of specialists who are compassionate to your   situation and understand what your are going through

 Our team of expert staff knows the foreclosure process, timelines and options so that you can be confident that you are making the right choice.

All this is at NO CHARGE to you as the homeowner! To discuss the short sale process and your options, please contact our office to set up a FREE no obligation consultation. We are here to provide you with options! Feel free to contact our office at (714)743-9778 or simply login to www.ADshortsales.com

Thank you,

Ashlie DuCros

Ashlie DuCros

Pre-foreclosure specialist

Dre # 01451478

Direct 714-743-9778

Email: AshlieDuCros@mailpcr.com

Website: www.AshlieDucros.com

City

# of Active Homes on Market

# of Homes in Escrow

Yorba Linda

255

175

Brea

70

68

Fullerton

275

288

Anaheim Hills

141

91

Newport Coast

143

41

Irvine

503

495

Placentia

108

80

Orange

306

264

Tustin

164

188

Corona Del Mar

161

40

Villa Park

47

9

North Tustin

63

27

Source: money.cnn.com

The difference between rates on a 30-year fixed mortgage and

NEW YORK (CNNMoney.com) -- Even though signs of a housing recovery are uneven at best, the Federal Reserve is about to take off the training wheels it has had in place for more than a year to help the battered market.

The Fed has been buying mortgage-backed securities, the bundling of home loans that are used to fund mortgage lending, since late 2008. But next month it plans to complete its purchase of $1.25 trillion in mortgages

That could be bad news. There is wide agreement that the removal of this support will mean higher mortgage rates, which could hit housing prices and sales hard. Some even worry that this could cause the broader economic recovery to stall.

The program was the largest single injection of cash into the economy by the Fed during the financial crisis, and it will be the longest-lasting source of funds as well. Even though the Fed intends to stop buying mortgages, few expect the central bank will start selling them to private investors any time in the next few years.

Higher rates on the way. But even if the Fed holds onto the mortgages it has already purchased, the act of no longer buying additional mortgages is likely to raise mortgage rates in the coming weeks. Experts say a jump of at least a quarter to a half percentage point is likely.

San Francisco Federal Reserve President Janet Yellen warned of higher rates in a speech Monday. Fed Chairman Ben Bernanke is likely to take questions about the Fed's mortgage program when he testifies about economic conditions on Capitol Hill Wednesday and Thursday.

The spread between the interest on 30-year fixed rate mortgages and the benchmark 10-year Treasury note now stands at about 1.2 percentage points. Before the financial crisis, this spread was typically closer to 1.5 percentage points.

The worry is that high foreclosure rates and a still struggling economy will make investors demand a bigger spread than "normal", since mortgages carry far greater risk in the current market.

Before the Fed started buying mortgages, the spread had climbed to about 2.5 percentage points. A return to that spread is unlikely, but there is uncertainty about how high it could go.

Paul Kasriel, director of economic research at Northern Trust, said he "wouldn't be surprised" if the spread widened by half a percentage point from current levels.

That can have a significant impact on prices by limiting what a buyer can pay for a home. Take the $178,000 median home price of existing homes sold in January. A buyer with a 20% down payment will pay just over $750 a month in mortgage payments for a 30-year fixed loan at today's rate.

Raise that rate by a half point, and the same buyer will only be able to afford a home worth $170,000 to keep payments near the $750 a month level.

The other concern is that even if the spread doesn't increase that much, mortgage rates could still shoot up simply if Treasury yields start to rise. That's possible if the debt problems in Greece and other weaker European countries is resolved in the new few months and investors who moved to U.S. government debt in a flight to quality move out of Treasurys.

End of tax credit to add to problems. The worries about the Fed pulling back support for housing are compounded by the end of up to $8,000 in tax credits for home buyers. To qualify, buyers face an April 30 deadline to sign a sales contract.

Dean Baker, co-director of the Center for Economic and Policy Research, argues that the Fed's program and tax credit for home buyers "ended the free fall in home prices."

But he thinks that the removal of this support could mean that home prices could start to drop by as much as 1% a month again. He also thinks mortgage rates could climb by as much as a percentage point in the coming months.

Jay Brinkman, chief economist for the Mortgage Bankers Association, said even if there isn't a big impact on home sales and prices, higher rates will lead to a plunge in mortgage refinancings.

The MBA now forecasts refinancings will fall to a range of $500 billion to $600 billion this year from $1.4 trillion last year. That will mean even less cash available for homeowners to spend on other goods or to reduce debt.

But Brinkman said the Fed is right to do what it is doing, even if the housing market is still in tenuous condition.

"It's kind of like a pain killer. If you stay on it too long, the withdrawal pains may be worse than the pain you were trying to deal with," he said.

But David Wyss, chief economist with Standard & Poor's, said he isn't sure that the Fed will even follow through and stop buying mortgages. If home sales and prices start to tumble sharply once again, the central bank could be back buying mortgages fairly quickly.

"It's like the parent who is teaching a child to ride a bike who carefully lets go while running along side," he said. "The Fed thinks the child is able to balance by himself at this point, but it's still going to be running alongside the bike, just in case." 

For More information please visit: www.AshlieDuCros.com or AshlieDucros@mailpcr.com

Here is an interesting article I found in LA times regarding high end market sellers...

LA Times- By Lauren Beale

The housing slump is finally bringing down prices in the luxury property market.

Billionaire tax cheat Leona Helmsley loved a good bargain. So, were she still around, the late hotelier might appreciate recent happenings at her Greenwich, Conn., estate known as Dunnellen Hall.

FOR THE RECORD:
Luxury-home prices: An article in Business on Saturday about a slump in the high-end housing market referred to Osterville, Maine. Osterville is in Massachusetts. —

The 14-bedroom, 13 1/2 -bathroom mansion, which came on the market priced at $125 million two years ago, has been reduced to $60 million. That's a 52% price chop for the 21,897-square-foot Jacobean manor on 40 rolling acres. The home comes with a 52-foot indoor swimming pool, a walled courtyard featuring a 70-foot reflecting pool and a roof terrace with views of the Long Island Sound.

The Southern California real estate landscape, likewise, has been littered with its share of high-profile price drops.

Nicolas Cage's 11,817-square-foot English Tudor in Bel-Air has been reduced 50% to $17.5 million from $35 million when it first hit the market in 2006.

Les Baux de Palm Springs, home of Suzanne Somers and Alan Hamel, started at $35 million more than two years ago and was eventually slashed to a reported $12.9 million -- a 63% reduction. The 65-acre property remains on the market with the price "available upon request."

When the housing bubble popped, the most dramatic declines hit the mid-priced and low-end markets, where home sellers had to compete with cheap foreclosures. Now, even the wealthy are facing the new reality as some luxury homes' prices have dropped -- and dropped again -- over the last few years and agents are begging sellers to be realistic in setting an asking price.

"The $10-million-plus market is best priced close to the bone," said Michael Eisenberg of Keller Williams Realty, Beverly Hills.

At the peak, Eisenberg said, he had clients who were flipping every two or three years and making so much money they almost didn't need to work anymore. These days he's happy to take a languishing listing.

"It doesn't hurt that the state of the market has helped sellers get a better perception as to what their property is currently worth," he said.

Eisenberg has the listing of a home that tops 14,000 square feet with a 3,500-square-foot detached guesthouse nestled on more than an acre of land -- and an asking price that has been reduced by about half to $10.8 million. Its rooftop tennis court has city-to-ocean views, and the ballroom can hold 200 people.

"I listed it for this seller a few years ago in a different market," said Eisenberg, who has been selling real estate for 15 years. "Quite simply, there was a time that Sunset Strip showplaces were garnering close to $2,000 a foot."

That figure has dropped to probably $800 today, he said.

"The market moved, and so with it did the price," Eisenberg said. "The seller is a smart businessman and a reasonable guy -- he gets it -- and the best part is that he is under no real pressure to sell as the property is owned free and clear of any debt."

Therein lies one reason for more overpricing in the luxury home market, said Gary Painter, director of research at the USC Lusk Center for Real Estate.

"What's different about the high end, compared to the general population, is that people who have substantial resources are able to wait longer" to sell, Painter said. "In the bottom of the market you see negative-equity situations, loans going up, people must sell. Outside forces force them to price to sell. Those sorts of outside forces aren't as present [at the upper end]."

Because luxury homes are often one-of-a-kind and there are fewer sales in such a narrow marketplace, groups that track statistics pick varying points as the cutoff for this market. Homes priced at $2 million and above -- the dividing line at Trulia.com, a San Francisco-based website that tracks the market using Multiple Listing Service feeds -- account for most price drops nationwide. Such homes represent less than 2% of Trulia listings but are responsible for 24% of the dollar volume in asking-price reductions.

The act of repeatedly lowering the asking price until a buyer is found is known as "chasing the market," said Michael Gardner, an agent with Prudential Malibu Realty who shares his observations on the beach city market at www.themaliburealestateblog.com. It can be a time-consuming way to sell a house.

But sellers' thinking has been slow to adjust to the sea change in pricing since the bubble burst. When determining an asking price, a good agent starts by evaluating the prices of comparable recent sales in the area rather than looking at the prices of active listings, Gardner said. "They then take the numbers to the client, where they may have to battle the client's ego."

A frequent refrain of the seller, he said, is "My house is better than that one."

Some agents, fearing they won't get the listing, will go with the higher price the client wants, Gardner said. In this case, he recommends the agent include a caveat: "I'll list it at your price, but if we don't have any offers in 30 days I'll be asking for a price reduction."

These types of sellers, he said, "want to test the water."

But this is a trickier proposition in a market in which values are falling, said Darryl Davis, a real estate agent in Wading River, N.Y., who trains agents across the nation. "You need to price ahead of the market instead of lowering the price every 30 days," he said.

It's one thing for an agent to take an overpriced listing when prices are rising. "It's possible the market will catch up with the price eventually," Davis said. "But the reverse is happening. To take an overpriced listing now is pointless for the agent and the homeowner."

Jack Cotton Jr., who specializes in the Cape Cod luxury market at Sotheby's International Realty in Osterville, Maine, says no to sellers who won't price realistically. He turned down the listing of an 11-acre property overlooking the water that the seller wanted to price at $4 million.

"Now it's bank-owned and it's still not selling," Cotton said. The current asking price is $1.8 million.

This is not to say that homes with stratospheric asking prices don't eventually sell after they've had time to come down to earth. A newly built home on more than two acres in Malibu's Paradise Cove area sold last year for $17.5 million -- 56% off its original $39.5-million asking price less than a year earlier. Terra Bella, an Italianate home of nearly 14,000 square feet on three oceanfront acres in Santa Barbara's Hope Ranch, sold in the fall after first coming on the market at $39.5 million in May 2007. Based on transfer tax information from the Santa Barbara county clerk's office, the property sold in October for $12.8 million, more than 67% off the original asking price.

Last year there were 332 sales of homes for $5 million or more statewide, according to MDA DataQuick, a dramatic drop from 608 such sales in 2008 and 565 in 2007.

More so perhaps than in other parts of the nation, Southland sellers have another reason for overpricing at the onset: the magical belief that a star will happen upon their place and be willing to pay any price.

"The story of celebrities knocking on doors and overpaying for a house they 'have to have' still floats around," Malibu agent Gardner said.

Reinforcing the popular myth, Cotton said, is that "every once in a while the real estate god looks down and someone will buy a place that's overpriced."

For more information visit www.AshlieDucros.com or AshlieDuCros@mailpcr.com

We've seen plenty of distressed sales in the Kerrigan Ranch community... However, there seems to be slight change in today's market place. There are total of 7 Active homes available in the Kerrigan Ranch community which are all normal sales. This means  no bank owned or short sales homes on the market at this time.  However, out of the total 3 homes in escrow, only one is short sale home.  For the month of Jan. 2010, 3 homes closed in Kerrigan Ranch. Two homes were short sales.  Looks like we're seeing a new trend in the real estate market... What do you think?

For more information regarding homes in the Kerrigan Ranch community in Yorba Linda, please contact us, or login to www.AshlieDuCros.com

California's Home Inventory Shrinks to 5-Year Low

By JIM CARLTON

SAN FRANCISCO—California's inventory of unsold, previously owned homes shrank to a five-year low in December, in another sign that the state may be coming out of its worst housing slump in decades.

The supply of unsold single-family homes dropped to 3.8 months from 5.6 months a year ago and 16.6 months in January 2008, when inventories were at a peak, according to estimates released Friday by the California Association of Realtors. The inventory levels are now at their lowest level since 2005, resulting in frenzied sales with multiple offers in some cities.

In Northern California's Santa Clara County, where inventory has dropped to 50 days from 243 a year ago, Amanda Garcia said she and her 62-year-old father Luis Garcia finally gave up a nine-month search for a home last month, after they kept losing out on homes priced in the highly competitive sub-$500,000 market.

"It's more like an auction nowadays," said Ms. Garcia, 26, a medical coordinator from Milpitas, Calif. "They shouldn't call it a house sale."

California's housing market is closely watched because it is the nation's biggest and helps fuel both the state's economy and the national building industry. With California still weighed down by economic problems, including a 12.4% unemployment rate, higher than the 10% rate nationwide, economists are looking at bellwethers like housing to determine when California will rebound.

Of course, any long-term revival in housing will depend on California's ability to shake off its high unemployment and the continuing threat of more foreclosures. Some housing experts cautioned that inventories may be artificially low because many would-be sellers are waiting for the economy to improve before putting their homes on the market.

"I'm convinced that once the general public believes prices have bottomed out and are coming up, more people will put their homes on the market," said Andrew LePage, an analyst at MDA DataQuick, a housing-data provider in La Jolla, Calif. "And that will probably coincide with the economy and job market improving."

Although most home prices remain well below their pre-bust highs of three years ago, California's overall housing market has shown signs of stabilizing since early last year. The median price of an existing, single-family home rose 8.4% from a year ago to $306,820, marking the second consecutive year-over-year increase and the 10th straight month-over-month jump, according to estimates by the state Realtors' association.

Sales rose at a slower year-over-year rate of 1.7%, compared with double-digit gains in recent months. Sales have been powered, in part, by a federal tax credit of $8,000 for first-time buyers, which Congress extended until the end of April.

Some brokers attributed the sales slowdown to lean inventories. "Right now, we need more listings," said Lianne Pinkston, a Coldwell Banker broker in Morgan Hill, Calif., south of San Jose. "I have an all-cash investor, and they've wanted to buy a duplex or four-plex, and they've been making all-cash offers for over the asking price, and they're still not getting anything."

The current inventory rate is running well under California's historical average since the 1980s of about an eight-month supply of existing homes on the market. That's partly because a once huge supply of foreclosures in the state has dwindled. In November, foreclosed properties accounted for 40% of all single-family sales, new and used, in California, compared with 58% in January, according to the most recent estimates by Zillow.com, a market tracker.

In general, California's coastal markets performed better than inland markets. In Orange County, for example, Zillow estimates foreclosures dropped by more than one half to 20.6% of all single-family sales in November from 43.5% in January. In inland Merced County, foreclosures were also down, but to 69.9% of sales from 83.4% in January, according to Zillow.

The return to the kind of bidding wars that marked the state's boom years in some coastal cities hasn't been welcomed by home buyers. In Orange County, graphics designer Scott Butler put in one of 37 offers on a three-bedroom, two-bath home listed for $350,000 in early September. Mr. Butler bid full price for the home in Mission Viejo, Calif., and offered to put 20% down, but the winning bid went over $430,000, said his agent, Michael Caruso.

Mr. Butler, 39, who has since given up his search, said he was outbid on more than 20 other homes since early 2009. "It's very discouraging," he said.

For more information please contact Ashlie Ducros 714-743-9778 or AshlieDucros@mailpcr.com

Check out Orange County Stats for Febuary 2010!

Existing-Home Sales Down, but Prices Rise

Existing-home sales fell as expected in December after first-time buyers rushed to complete deals during the months leading up to the original November deadline for the tax credit. However, prices rose from December 2008 and annual sales improved in 2009, according to the National Association of REALTORS^®.

Existing-home sales—including single-family, town homes, condominiums and co-ops—fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million units in December from 6.54 million in November, but remain 15 percent above the 4.74 million-unit level in December 2008.

There were approximately 5,156,000 existing-home sales in 2009, which was 4.9 percent higher than the 4,913,000 transactions recorded in 2008. It was the first annual sales gain since 2005.

Tax Credit Creates Swing in Market

Lawrence Yun, NAR chief economist, says there were no surprises in the data.

“It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,” he said. “We’ll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit. By early summer the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010."

However, Yun says, the job market remains a concern and could dampen the housing recovery. "Job creation is key to a continued recovery in the second half of the year,” he says.

An NAR practitioner survey shows first-time buyers purchased 43 percent of homes in December, down from 51 percent in November. Repeat buyers rose to 42 percent of transactions in December from 37 percent in November; the remaining sales were to investors.

The national median existing-home price for all housing types was $178,300 in December, which is 1.5 percent higher than December 2008.

“The median price rose because of an increased number of mid- to upper-priced homes in the sales mix,” Yun says. It was the first year-over-year gain in median price since August 2007.

Falling Inventories

NAR President Vicki Cox Golder said market conditions are challenging in some areas.

“There’s a shortage of lower-priced homes for sale in much of the country, resulting in multiple bids in some areas,” she says. “Raw unsold inventory has been trending down. As the market heats up again this spring, buyers may need to be prepared to move quickly on a particular home."

Total housing inventory at the end of December fell 6.6 percent to 3.29 million existing homes available for sale, which represents a 7.2-month supply at the current sales pace. That is an increase from a 6.5-month supply in November.

Raw unsold inventory is 11.1 percent below a year ago, is at the lowest level since March 2006, and is 28.2 percent below the record of 4.58 million in July 2008.

Distressed homes, which accounted for 32 percent of sales last month, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

For all of 2009, the median price was $173,500, down 12.4 percent from $198,100 in 2008. Distressed homes accounted for 36 percent of total sales last year.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.93 percent in December from 4.88 percent in November; the rate was 5.29 percent in December 2008.

Single-Family Home, Condo Sales Dip

Single-family home sales fell 16.8 percent to a seasonally adjusted annual rate of 4.79 million in December from a pace of 5.76 million in November. Sales are 12.7 percent above the 4.25 million level in December 2008. For all of 2009, single-family sales rose 5 percent to 4,566,000.

The median existing single-family home price was $177,500 in December, which is 1.4 percent above a year ago. For all last year, the median price for a single-family home was $173,200, down 11.9 percent from 2008.

Meanwhile, existing condominium and co-op sales fell 15.4 percent to a seasonally adjusted annual rate of 660,000 in December from 780,000 in November. Sales are 34.7 percent higher than the 490,000-unit pace a year ago. For all of 2009, condo sales rose 4.8 percent to 590,000 units.

The median existing condo price was $183,700 in December, up 1 percent from December 2008. For all of last year, the median condo price was $176,100, which is 16.1 percent below 2008.

Regional Breakdown

Here are existing-home sales figures by region:

• Northeast: sales dropped 19.5 percent to an annual level of 910,000 in December but are 21.3 percent above a year ago. Median price: $241,700, up 3.2 percent from December 2008.
• Midwest: sales fell 25.8 percent in December to a level of 1.15 million but are 8.5 percent higher than December 2008. Median price: $143,200, which is 1.8 percent above a year ago.
• South: sales dropped 16.3 percent to an annual pace of 2.01 million in December but are 15.5 percent above December 2008. Median price: $152,000, down 1 percent from a year ago.
• West: sales declined 4.8 percent to an annual rate of 1.38 million in December but are 15 percent higher than a year ago. Median price: $236,000, up 2.7 percent from December 2008.

— NAR

For more information on this article, please contact us at Ashlieducros@mailpcr.com, or let us know what you think on www.AshlieDuCros.com

           What’s ahead for home prices?

Sales are ticking up, but don’t expect prices to follow until the middle of the year.

California remains ahead of the nation in market recovery with many first-time home buyers entering the market due to affordable home prices, low mortgage rates, and first-time home buyer tax credits from the state and federal governments.  However, credit still is tight and unemployment remains high, which could hinder a full market recovery until 2011.

              MAKING SENSE OF THE STORY FOR CONSUMERS
Home sales in California hit bottom more than two years, and the median home price of an existing, single-family home reached its trough in February, according to data collected by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).  In November, the state’s median home price rose in year-to-year comparisons for the first time since August 2007.

C.A.R.’s closely watched "2010 California Housing Market Forecast,” projects that the median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 in 2009. 

Some economists are forecasting another surge of foreclosures in 2010.  However, C.A.R.’s economists expect that foreclosures will remain flat this year compared with 2009.  In 2008, many lenders flooded the market with foreclosures, and as a result, the state’s median price declined by historic levels.  By comparison, in 2009, lenders listed properties for sale at a more measured pace, which helped moderate another home price decline.
Government efforts to maintain a low interest rate environment have stabilized the market.  However, a mortgage analyst at a financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent.

By Pat Mertz Esswein of Kiplinger's

If you have questions regarding the real estate market, please contact me at 714-743-9778, or ashlieducros@mailpcr.com "your source of Orange County Real Estate."

In looking at Olinda Ranch community in Brea today,  you will find total of 6 homes Active in today's market.  They are combined types of sales with 2 short sales and 4 Retail sales. For the month of December, there were total of 10 homes went into escrow which 5 were short sales, and 5 retails.  The closed ration seems to be almost 50%. There were total of 5 closings in this month.  Two of the homes were short sales which is good news for people looking to short sale their homes. It seems like banks are being more cooperative in getting these deals approved.  There were also total of 3 Retail sales.  So depending on your time frame to buy, both short sales and retail sales exist in this community.  If your a homeowner, right now will be good time with low inventory in your neighborhood.  It seems that both short sales and retail sales are in demand.

 To find out what your home is worth, click on "Whats my property worth?" on www.AshlieDuCros.com   For more information of this community, please contact us.  The link below will show you the list of homes.

       Line Item Report  (Market Report December 2009)

Ashlie DuCros

714-743-9778

ashlie.ducros@mailpcr.com

www.AshlieDucros.com

Is it good time to sell in your neighborhood?

As of January 2010, the active homes on the market have decreased quite a bit since last year.  There are only total of 4 homes on the market right now, 5 are in escrow, and one home closed in the month of December. There were mixture of both short sales and retail sales in this neighborhood.  I do see that buyers are starting make purchases for both retail and short sale priced homes indicating a demand for this neighborhood. Please click on the link to see the market snap shot.  To find out what your home is worth, simply login to www.YorbaLindahomevalue.com, or click on search local listings to find your dream home! 

       Line Item Report  (Click here for report)

Great home located in East Lake Village! This recently upgraded home features 4 bedrooms plus huge game room/bonus den upstairs with fireplace. One bedroom is located downstairs for your guests or office space. This home has open floor plan with travertine entry way, and gorgous distressed hard wood floors thru out entire downstairs area, with large formal area to entertain your guests. Kitchen has granite counter tops with center island and pantry, opens to cozy family room with fireplace. The master suite has huge walk in closet, his/her sinks. Enjoy the private backyard with pool and spa surrounded with lush landscaping. Great location next to excellent schools! Enjoy all the ammenities including pools, club house, volley ball court, gym, and more! Or, enjoy walking around the lake! Welcome home! 

** Are you behind mortgage payments? Do you want to avoid foreclosure? For your options, simply login to www.ADshortsales.com****

 ACTIVE homes on the Market VS. Homes in ESCROW

If you have any questions or would like more information please contact Ashlie Ducros (714) 743-9778 or via email AshlieDucros@mailpcr.com

 ACTIVE homes on the Market VS. Homes in ESCROW

December 2009

If you have any questions or would like more information please contact Ashlie Ducros (714) 743-9778 or via email AshlieDucros@mailpcr.com

Guidelines Aim to Ease Short Sales

The Obama administration laid out final guidelines on Monday that should make it easier for some financially troubled borrowers to sell their homes.

The short-sale program is the latest addition to the Obama administration's $75 billion foreclosure-prevention plan, which includes incentives for mortgage companies and investors to rework troubled loans. The government first said in May that it would include short sales in the program, but it has taken months to finalize the details.

Under the new guidelines, second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgages, meanwhile, can collect up to $1,000 from the government for allowing such payments.

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Printed in The Wall Street Journal, page A6

If you or anyone you know is having financial difficulties making their mortgage payment, please contact me to discuss if you can qualify for short sale at www.AshlieDuCros.com or ashlieducros@mailpcr.com

The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly.

To qualify under these new guidelines:

• The property must be the home owner’s principal residence.
• The home owner must be delinquent on the mortgage or close to defaulting.
• The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
• The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.

Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)

If you or anyone you know is having financial difficulties making their mortgage payment, please contact me to discuss if you can qualify for short sale at www.AshlieDuCros.com or ashlieducros@mailpcr.com
 

(Update: Short sale listings also on the rise.)

Some Realtors say the sale of a home for less than the owner owes on it has gotten smoother, while others say those underwater sales are as difficult as ever.

Whatever the case, Orange County’s year-long uptick in “short sales” increased another notch last month, rising to 21.3% of all existing home sales, according to figures from the Southern California Multiple Listing Service.

That’s up from 19.4% in September and the highest percentage this year.

Short sales also outpaced the sale of repossessed homes, or REO’s, for a second straight month, even though REO sales increased slightly, too.

Details from the latest SoCal MLS report include:

• Orange County home sellers completed 530 short sales in October, 80% more than took place at the start of the year.
• Short sales on average accounted for 18.6% of O.C. homes sold through the MLS during the first nine months of the year, falling as low as 16.7% in March.
• Repossessed homes resold by lenders accounted for 17.8% of sales in October, down from 44% at the start of the year.
• All distressed sales combined jumped to just over 1,000 in October.
• But distressed sales accounted for just 40.7% of all existing home sales last month, vs. 64.8% at the start of the year.

Posted in: Selling patterns • numbers • SoCal MLS posted by Jeff Collins

For More Information Please contact Ashlie DuCros (714)743-9778 

Check out my Blogs on Trulia.com or Follow me on Twitter @ Oc_Realty

Senate Approves Tax Credit Extension, Expansion
The Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers and add a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000.

The legislation was included in a bill to extend unemployment benefits and is expected to be passed by the House today or tomorrow. President Obama is expected to sign the legislation when it's sent to his desk.

Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.

Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.


Source: The Associated Press (11/5/2009)

Pending Home Sales Continue to Rise

Pending home sales rose again, marking eight consecutive monthly gains – the longest streak since measurement began in 2001, according to the National Association of REALTORS®.

The Pending Home Sales Index,^* a forward-looking indicator based on contracts signed in September, rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9.

The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.

Lawrence Yun, NAR chief economist, said the momentum is understandable.
“What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” he said. “Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery.”

NAR estimates approximately 3 million renters are now financially well-qualified to buy a median-priced home. “As long as buyers do not overstretch and stay well within their budget, a sizable pent-up demand can be tapped among financially qualified potential buyers,” Yun said. “Although the tax credit is greatly reviving the existing home market, new-home sales may continue to struggle as home builders hold back production to drive down inventory. In addition, there remains an ongoing credit crunch for construction loans.”

The Pending Home Sales Index in the Northeast slipped 2.0 percent to 83.6 in September but remains 16.9 percent above September 2008. In the Midwest the index rose 8.1 percent to 98.2 in September and is 17.8 percent higher than a year ago. In the South, pending home sales increased 4.9 percent to an index of 109.7 and is 22.8 percent above September 2008. In the West the index jumped 10.2 percent to 143.8 and is 23.7 percent above a year ago.

Yun added that strong near-term reports should not be overstated. “We’re clearly not out of the woods because an excess of homes remains on the market despite recent improvements,” he said. “Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline. An extended and expanded tax credit would help absorb this incoming inventory.”

Source: NAR -Realtor Magazine