How to get a great deal in the BANK OWNED BONANZA!!!

If you have considered buying a home in the Southern California area and you feel that you are ready to do so then you can be a part of this MASSIVE Bank Owned BONANZA that is going on right now!!

This bank owned market is a lot like an entire street having a garage sale... Here is scenario...
Let's say you went down a street that was having a garage sale at EVERY HOUSE...
***you now have options
And every seller is competing with eachother to sell more of their CRAP
***you have reduced prices and chances for negotiations
When one seller gets selling more than the others the others scramble to catch up
***you get a frenzy of low prices all at once
You see something you like at one house.. but as you are looking at it deciding if you want to buy it someone yells out 'I'LL TAKE IT' and its sold right from under you...
***there is a LOT of competition for this merchandise on the street
You finally find something that you absolutely LOVE... and you put it down to bring over a friend to show them what you are going to buy... and oops 'its sold now'...
***you get disappointment that you missed out on the one you LOVED...
You now turn to a new house with a more rapid pace and vigor to NOT MISS OUT AGAIN....You find something you like.... you take a quick look... do some research QUICKLY to ensure its a good price and works well for you and then yell
'I WILL TAKE IT'...
***Now you understand the process of purchasing a bank owned home...

That might sound like it wouldn't happen to you and these homes will stay on the market for a long time so you don't need to hurry .... but trust me.... and ask ANYONE that has been in THIS bank owned market recently .... and they'll tell you that this is the way it is...

The GOOD ONES GOOD QUICK... and they sell for list price or above... Its nice that the list price is usually 30% or more below the peak of sales prices in 2006...
Its a tough game but in the end if... you know what you want... you know what price you can afford... and you have a solid agent helping navigate you through the hectic maze of bank owned homes... in the end you will end up with a home that you LOVE... a home that you can make your own.... a home that will appreciate in value greatly in the coming decade... a home that will end up costing you thousands and thousands less since interest rates are at historic lows... an investment that you can be secure in...

That is why this BANK OWNED BONANZA is something that you should not miss out on....

Even if you feel that prices might go down a bit further you can rest assured that you got yourself into a home that you truly can afford, in perhaps a better area to live and hopefully with more rooms than you had before... Of course it is not the best time for every single person to be buying. I am not writing this for absolutely everyone yet for those on the fence wondering if this IS the time for them... I am here to help you find out if this is your time to buy...

If you have ANY questions... ANY concerns... ANY thoughts that I am steering you the wrong way please let me know....

Nathan Kramer
Century 21 Professionals
(888) 865 - 2525
http://www.IwantaBIGGERhouse.com

Remodeled Bank Owned...NOT EVEN ON THE MARKET YET...

This is a remodeled, upgraded and STUNNING bank owned home in Southwest San Clemente...
That is NOT EVEN ON THE MARKET YET...

This home does not have a price set by the bank yet... but...
When it does get the price it will be a very, very good one...
THIS IS YOUR CHANCE to actually get one of these AMAZING DEALS!!
This home is a 3 bed...3 bath home with over 2,100 sq.ft.
OCEAN VIEW...Granite, new cabinets... THE WORKS!!
The backyard needs work and new carpet but hey it IS a bank owned...
They don't know the price yet but when they do.... I DO...

















Do you want a shot at this place too?
Call me today so we can talk about you possibly getting this home...

This house is a wonderful deal that I want to help someone get...
So if you afford in the $800,000-$900,000's this could be your DREAM HOME!! It ... is ... STUNNING!!
***This may or may not be my listing***

http://theprimerealestate.blogspot.com/

Mortgage rates plummet

The $800 billion infusion of federal funds into credit markets has an immediate impact on mortgage rates.

NEW YORK (CNNMoney.com) -- Mortgage rates fell sharply yesterday after the administration announced that it will pump another $800 billion into credit markets to free up frozen consumer and mortgage lending.
That number dwarfed previous government actions aimed at bolstering the mortgage lending market.
"The feds agreed to spend a half a trillion dollars to buy up mortgage backed securities and another $100 billion to fund lending for Fannie and Freddie; we're not talking chump change anymore," said Keith Gumbinger of HSH Associates, a publisher of mortgage information.
Rates averaged 5.77% for the day on a 30-year, fixed rate loan, down from 6.06% Monday, according to Gumbinger. They fell as far as 0.75 percentage points during the day, according to Orawin Velz, Associate Vice President for Economic Forecasting at the Mortgage Bankers Association.
That could save a typical homebuyer more than $90 a month on a $200,000 mortgage.
"The government action was geared to bringing mortgage rates down," said Velz, "and it did."
The drop was the largest since early September, when the administration announced that it was taking control of mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), and stemmed from similar market sentiment.
Both actions sought to give confidence to the investment community. Most mortgages are sold to investors in so-called secondary markets but with foreclosure rates so high and expensive write downs of mortgage-backed securities so common over the past several months, investors had fled the mortgage market.
Instead of buying mortgage bonds, they've been snapping up Treasurys, a virtually risk-free investment. That showed up in the falling yields of Treasury bonds and the greater difference between Treasury yields and mortgage interest rates.
Normally, interest rates on 30-year fixed rate mortgages are only slightly higher than yields on 10-year Treasury bonds, about 1.5 percentage points. That difference compensates mortgage investors for taking on extra risk.
Lately, however, because investors have perceived, quite reasonably, that risks of mortgage-backed securities were far greater than previously supposed, they demanded greater reward for investing in them.
That sent the difference, or spread, between mortgage interest rates and Treasury yields to 2 percentage points or so over the past year. That had widened even more recently, to about 3 percentage points, before the government took action yesterday. Even after the big drop in rates, the spread is still more than 2.5 points.
Whether the government action will lead to lower mortgage rates over the long term remains to be seen. "In theory, it should stimulate investor demand but there are a lot of unforeseen things that can occur," said Velz.
She initially thought the Fannie-Freddie takeover would have much the same long-term impact because it meant that the government was guaranteeing all the loans the two were backing.
"But the government started backstopping almost everything," she said, "so demand for mortgages declined and the spread increased again."
This time might be different, according to Mike Larson, a real estate analyst with Weiss Research, but he's far from certain.
"There's been some short-term bang for the buck," he said. "We have to see if it sticks."
Helping it stick could be the downward pressure from deflation concerns and the still unusually wide spread with Treasurys.
"Even if the spread just got a little tighter you'd get some added horsepower," said Larson. "We could see rates in the low fives pretty soon."

***I got this article from CNN Money.com it is an article that those interested in buying a home REALLY, REALLY need to read. You will continue to hear the 'doom & gloom' stories and make sure that you read the good articles like this one. There will always be reasons to be excited about the real estate market ... and there will always be people who want you to be as depressed as they are.... its your choice to decide which ones you listen to... I will choose to listen to those who are working to make a difference in these tough times... what will you do?

Rent ... versus ... Buy... which is the way to go?

I have heard a lot of people in the media stating that they would recommend that people 'rent for the next few years' and that amazed me. Looking at what is happening with the real estate market in terms of the ability to buy versus the past few years it seems strange to recommend people 'stay on the sidelines'. True there is a lot of indecision of what will happen in the coming year's economy yet it is hard to say that its a 'bad time to buy a home' in Orange County.

You can say whatever you like about buying now or buying later yet i wanted to just point out the fact that if you are looking which is better for you and your family BUY OR RENT there are some figures you should definitely realize. I took the city of Lake Forest as an example of what someone could get as a rental for a certain amount, $2,200 a month. Then I went to see what that amount would get them in a normal mortgage. I used the figures to show that you can actually get in terms of owning your own home. Here is the scenario that I think you should see.

3 bedroom condo in Lake Forest...2 stories...over 1,300 sq.ft.
Great Location! Close to the 241 toll road, 5/405 freeway, and the Irvine Spectrum.
Attached 2 car garage... Rent for $2,200 a month...
________________________________________________________________________
This place is great...but why rent when you can buy?
Wanna know how much home you can BUYING for that $2,200 a month?
Here's a comparison of BUY vs. RENT for $2,200 a month...

$275,000 home or condo @ 5.75% 30 year fixed... will cost $2,200 a month...
Which includes taxes, insurance and HOA dues...**not for all cases**
...versus...
Renting for $2,200 a month...EVERY MONTH…

In 5 years ...

BUYING... pay $2,200 a month (home has increased in value)
RENTING... NOW paying $2,750 a month (5% rent increase yearly...)

It's time to own your own home...it's time to build LONG TERM WEALTH...

Email me today to find out how YOU can become a HOMEOWNER...

Still skeptical? Think that there is nothing out there for that price?
Well at least 'nothing that I would like'? Right?

How about a 3 bedroom...3 bath...1,300sq.ft... BANK OWNED in Lake Forest in good shape...
with an attached 2 car garage...for under $275,000...

WHY ARE YOU RENTING WHEN YOU CAN OWN THAT??
Nathan
Century 21 Professionals
(888)865-2525

***The Rent vs. Own comparison above is presented as an estimate of the financial difference between home renting and owning. This is not a loan commitment, nor is it a guarantee of any financial benefit.***editdelete

Buy that bigger home NOW... or you might be out of luck in 2009!

If you have been searching for the best time to buy yourself a larger home and deciding 'when is best?'... you might have come to end of that timeframe. For most buyers in today's market you aren't going to buy a home with 20% down (which on an $750,000 house is $150,000!!)... most people buying today are using a government loan that allows you to buy a home with only 3% down.... it's called an FHA loan. (On an $750,000 house that would be $22,500... not too bad!) It is a great loan and if you need to learn why look at one of my past blogs called '10 reasons the FHA is a great loan'...

Well... let's get to the point.... WHY is the window for buying a larger home closing for most people? It's simple... the FHA loan limit used to be $417,000 which for Orange County will barely get you a condo in a decent area. The loan limit was raised for 2008 to try and spur people on to buying homes in the higher markets. The limit was raised to $729,750 and the limits were set to run out as of December 31st, 2008... and the new limit would be decided upon later. Well they have decided upon the new limit and the new limit will be $625,000 as of January 1st, 2009. So, if you and your family are looking to buy a larger home and would be getting a loan for the home you should have a 'heart to heart' and decide if that buying a home above $650,000 is what you want to do... because IF IT IS then you don't have much time to get a great deal on the loan!

I spoke with my lender, who has been in the business for the last 18 years and asked him about the loan limits... this is what he said..."In regard to the FHA limit; It is almost certain that the new FHA loan limit will be $625,000, however, since it's the government that we are talking about there are steps. #1, the base FHA loan limit for 2008 is still $362,790, but we can go to $729,750 through the rest of the year. The government wants to see all FHA Jumbo (Gumbo) loans close by December 10 to allow the time to sell on the secondary market for GNMA pools. As of January 1, the base loan limit will probably go up to $417,000, but can stay at $362,790, with a new Gumbo limit of $625,000. The rates and prices for both will remain different, like they are today, where the base FHA is less expensive than the Gumbo. If you have a buyer for something over $625,000, and they want to go FHA, then they better act fast or else they will either pay a much higher price to close at the end of the year or not be able to get a loan bigger than $625,000 after Janaury 1.

In regard to another FHA change on January 1; the minimum down payment will increase next year to 3.5% rather than 3% across the board. That's been published and will happen for sure.
The bottom line with the government is that, until it is published in the Federal Register, it is not happening. They can agree to it, but lenders cannot act on it until they say so and have it published.

One thing for certain, the $729,750 will not be here in 2009."

So if you are interested in GETTING A BIGGER HOUSE call me today ...Let's see if you NEED TO BE BUYING NOW before this loan passes you by...

BUY BEFORE IT'S TOO LATE

I know you think that as a real estate agent I would ALWAYS be saying that 'it's a great time to buy' yet in this instance I am not going to tell you that.... I am actually going to tell you that IF you are wanting to buy your first home, buy a bigger home or buy your first investment property... now is a good time... AND ... when you look back at this market in the next few years you might come to the conclusion that 2008 WAS the best time to buy. Rather than me simply telling you things that you already know I thought I would delve in deeper to see if I can find some correlations between today's market and some real estate/stock markets of the past. The good thing about relating today's market to a previous market is that there is no ambiguity. They are strictly numbers and statistics so there is no personal thoughts interjected.

So here are the statistics...
When the stock market plummeted in 1998 due to the Tech Bubble 18.1% from July to September the following year (1999) the real estate sales increased 14.8%. In 1987 there was 'Black Friday' where the stock market dropped 33%... the following year 1988 real estate sales were up 20%. After Vietnam and the Nixon fiasco the stock market dropped a whopping 34.4%... the following 3 years were up in real estate sales. 1975 was up 13%, 1976 was up 23% and 1977 was up 19%. In 1970 when they stock market dropped 17.25% the next two years the real estate market exploded with 1971 up 35% in sales and 1972 up 18%.

Now let's look at today's numbers... for the last 12 months (October 2007 - October 2008) the stock market has dropped 35%... and from September 2008 until today it accounts for 20% of that 35% drop! When you look at today's falling stock market and see what has happened in the past with similar markets you can see why this might be the best time to be buying a home...

Furthermore, the housing prices had been on steep decline for the last 18 months yet even those have steadied out... with actually a small increase last month of 2.3%. With so much turmoil in our economy and the $800 Billion Bailout in the works the market is definitely NOT a sure thing yet if you look at the past to learn from it you can see that it might just be... THE BEST TIME TO BUY...

Just a little insights that might get you into the perfect home... at a great price...while rates are very low... and inventory is still good... (inventory has been dropping this year quite steadily as well... inventory is DOWN 28.2% from August 2007 - August 2008...

At least now you have some statistics to use rather than simply whatever you hear on the evening news... or at the water cooler...
If you know anyone that I can help get more information into if this is the best time for them to buy please let me know. I am happy to help find eager buyers a great home that they can truly call their own...

How to SELL FAST in a buyer's market...

Your boss has just given you the career opportunity of a lifetime, but the job is in another state. Soon you discover that moving your family to another city may be one of life’s hardest tasks. The thought of leaving behind old friends and schools for a strange town can be frightening. The biggest challenge of all, however, it to preserve the equity in your housing investment so you will be able to purchase a similar home in the new location.
Not to worry. Even in these uncertain times homeowners can sell at very satisfactory prices in a reasonable period of time. The secret? Pay attention to details, utilize marketing savvy and price the home to sell quickly.
The following tips can help you get that “sold” sign up fast.

SELECT A SAVVY REAL ESTATE AGENT…one with a successful track record in your neighborhood, backed by resources that extend into outside housing markets. Make sure the agent prepares an effective listing of your property –on that outlines all the features that make your home unique. Also, it’s smart to prepare a separate fact sheet that can be distributed freely to all interested buyers. In soft time, offering the agent a bonus if the house sells within 60 days can work to the homeowner’s advantage.
OFFER THE RIGHT PRICE. Start with a price that is reasonable for your neighborhood and the size of your home. Comparing the price of your home with similar nearby listings is an easy way to be sure you are offering the right price. Comparing the opinions of two independent appraisers will also help you avoid over-pricing.
PAY PART OF THE CLOSING COSTS…usually 3 to 5 percent of the loan amount. This will attract those first-time buyers who are short on cash for down-payment and closing costs. Offering to turn over personal property such as washing machines and dryers, refrigerators and flower boxes can also attract buyers looking for the best deal.
ACCEPT CONTINGENCY AGREEMENTS. Make your sale contingent upon the sale of the buyer’s home. This takes away buyers’ fears of juggling two properties and mortgages at the same time.
TAKE ADVANTAGE OF THE CORPORATE RELOCATION TRADE. Be sure that your broker is connected to a relocation network – one capable of brining in buyers from distant places. And, of course, try to get your employer to provide you with relocation assistance, too.
MAKE YOUR HOME STAND OUT. Fresh paint and flowers can go a long way in impressing buyers. Tend to such details as moving the lawn, fixing stubborn door knobs and sliding doors, and straightening up the basement. Remember, your home’s appearance on the day it’s shown can make or break a sale.
The bottom line is that sellers should take the time to make their home as attractive as possible. Compiling helpful tips for the buyer about school districts, utility bills and directions to the nearest shopping mall can go a long way in selling your house quickly.
With a little work and an active real estate agent, chances are good that your house will sell fast in today’s buyer’s market.

How does the 700 Billion Dollar Bailout affect you?

Are you “On The Fence” about buying a home?

How does the 700 Billion Dollar Bailout affect you?

It helps transform the mortgaged-back securities. This keeps access to capital for borrowers high and interest rates low.
Conforming/jumbo conforming rates should drop in the coming weeks by as much as a percentage point.
It improves confidence in the stock market allowing investors to once again realize profits, which they in turn can re-invest in mortgages.
Credit will flow again bringing new, qualified buyers into the market to take advantage of the investment opportunities currently available.
Modified mortgages will allow some homeowners to restructure their mortgages and avoid foreclosure.

If you're on the fence, now is an excellent opportunity to realize dramatic savings on a home purchase before the market shifts, and we begin the next 'Up' stage of the cycle.

Federal Mortgage Relief....what is it going to relieve?

The Federal Mortgage Relief Program has just came into effect yesterday. The idea between the plan is to help keep homeowners in their homes by allowing their lenders to 'swap' their currently deficient mortgage for a new one that would allow them to stay in the home with a lower monthly payment.... It is said to hopefully keep 400,000 homeowners IN their home and not become a new foreclosure... The government even put $300 BILLION aside for this 3 year plan... SOUNDS AMAZING DOESN'T IT?...

What does it take to have my lender modify MY loan? Well... you would need to be spending at least 31% of your income on your mortgage payment and your home's market value must be lower than what you owe on the home... okay... so that doesn't sound too bad!

Most people are in that category... so what's the catch? Is there a catch? Or does everyone simply get to have their loan adjusted so that they 1) pay less monthly and 2) owe less on their home? .... GET REAL.... that is NOT what this is going to do...

I forgot to mention the last piece to the puzzle... just a little one... the person responsible for deciding if the mortgage is modified isn't the borrower... it's the lender who decides if they want to participate in the program.... ahhh... so there's some more insights. So what would it take for the lender to allow you to modify the loan and stay in the home you ask?

What would the lender have to 'give up' or 'agree to' in order to make this work?....

"It can't be that bad or the government wouldn't even waste their time making the policy right?"

Well here is what the lender would have to agree to....

1) Write down the principal to 90% of the current market value...

That means that if you bought your home in 2006 for $1,000,000 to use easy numbers let's use the market value of today as being 30% of what is was in 2006. So... the market value today is $750,000 ($250,000 LESS than owed). NOW.... the bank needs to lower the principal to 90% of market value... which is $675,000. IF the bank will do this THEN the borrower is allowed to stay in the home and the bank will then modify the loan. Seems like the bank would JUMP at the idea of doing huh?

OWED $1,000,000 + INTEREST

Market Value $750,000

90% of Market Value $675,000

= $325,000 Difference

So... if the bank agrees to INSTANTLY LOSE $325,000 you can stay in your home!!

...DON'T HOLD YOUR BREATH...

The government is thinking in the right direction yet they are asking banks to completely write off all this debt for the borrower with no recourse for the borrower. If this plan had a way for the principal to be turned into a 2nd mortgage where it could be paid starting in 5-7 years depending on what the politicians decide PLUS the interest that it would accrue throughout the term then this plan MIGHT have a chance of actually helping people. That way the banks will simply have an outstanding debt that WILL be paid or the home can be sold since there is equity once the market turns. The borrower is fine with the 2nd mortgage because in 5-7 years they can either sell the home for a profit or simply start paying what they are forced to pay today. If you had this plan with that small tweak it would do 3 things....

1) The banks would be getting paid what they are owed in the long run... BANK IS HAPPY...

2) Borrowers stay in the home with a much lower payment... BORROWER IS HAPPY...

3) More people in their own homes with less foreclosures... Real Estate Market is HAPPY...

So in conclusion... when you hear your neighbor scream "Have you heard about the new law that just passed? I am gonna stay in my home and will only have to pay HALF what I pay now! .... AND my loan is going to be on $300,000 less than I owe.... this is AMAZING!!!"

Just look at them and say "wow that's great... have you talked to your lender about that yet? ... if you haven't... maybe you should talk to them BEFORE you get too excited."

This plan is flawed... the intention is great to help people stay in their homes yet when you don't think through it actually panning out in real life it helps no one.

If you are reading this and wishing that this could work for you then contact the holder of your mortgage and ask what they would consider... please don't take my word for it. I just wanted you to see how absolutely ridiculous this offer sounds to a lender...