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For last two years, a major portion of my business came from selling REO Bank Owned properties in Orange County CA. The toughest part of the whole assignment is to go to someone’s home and tell them that they no longer own their home and need to move out.
People react differently each time, from helplessness, hopelessness expression to outrageous rage. Regardless of how they got there, whose fault it was, uprooting is not an easy situation to deal with. Although, it is like any other job that someone has to, and here it has to be an REO agent, I could never forget one incidence where we did the Cash for Keys; previous homeowner turned back, walked in to the house, she looked around at the walls and walked away with tearful eyes and a sigh of grief. That moment engraved in my mind and I still remember it.
Since then, I been thinking of how in the world, I could help, even if it is only for few people, each saved home makes a difference in someone’s life and builds that trust in humanity. Finally, that wish is coming true. I belong to a group, REO Masters Network. We are hosting a Fund raising party on Sept 21st at five star conference in Fort Worth, Texas, inviting Asset Managers, REO Realtors and lender community. We expect to have between 1000-1500 attendees. All the proceeds from this event will go to Foreclosure Angel Foundation. I am very impressed with Marilyn Mock’s work, she started this Foundation in 2008, helping her neighbor who was about loose her house.
Since then, this foundation has helped people to save them from this devastating situation. For anyone out there who ever had this thought of helping people in this situation, lets help Foreclosure Angel Foundation, one person, for one home, one neighborhood, one town at a time, we can all make a difference for our country.
If you would like to attend this fund raising event, go to https://lifepower.infusionsoft.com/go/charity/namneet/
Thank you so much for supporting this cause.
Namneet Dhaliwal- REO Specialist Orange County CA
http://www.namneet.com
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Jan 2009 - July 2009
Many people wonder about the current conditions of Real Estate Market in Orange County CA. Here is the synopsis of last seven months Real Estate Activity. On the average, there has been a rise in the price particularly in median to lower price range home where there is a bigger pool of first time buyers and investors. Even though average number of days on the market is still high but its real number s obscured by short sales that stay on the market due to the lengthy approval of this process. Most of the right priced REO properties or standard sales are selling within days, over the list price with multiple offers and, causing problems with the appraisals. Pricing is controlled by the appraisals at this point, which is good for a healthy recovery to avoiding a false increase in the values.
The biggest skepticism about the following rosy pictures is that how long would it stay like this, with all the shadow inventory of already foreclosed homes, that been held off the market since beginning of moratoriums and ongoing defaults and the job losses.
Month | New | Avg LP | Under Contract | Avg LP | Sold | Avg SP | %SP/LP | %SP/OLP | Avg DOM |
| | | | | | | | | |
Jul-09 | 9,319 | $549,844 | 4,096 | $456,841 | 6,364 | $443,456 | 98.26% | 92.10% | 79 |
Jun-09 | 9,105 | $609,447 | 4,385 | $440,333 | 6,081 | $437,722 | 97.86% | 90.66% | 79 |
May-09 | 8,836 | $646,921 | 4,133 | $394,064 | 5,853 | $422,417 | 96.86% | 89.50% | 79 |
Apr-09 | 8,890 | $586,367 | 4,363 | $462,898 | 5,445 | $396,834 | 96.27% | 87.83% | 77 |
Mar-09 | 9,797 | $595,456 | 4,245 | $369,541 | 5,271 | $397,003 | 95.93% | 88.01% | 77 |
Feb-09 | 8,854 | $558,251 | 3,464 | $382,709 | 4,093 | $391,877 | 96.70% | 88.70% | 74 |
Jan-09 | 10,051 | $578,832 | 3,364 | $432,568 | 4,140 | $414,342 | 96.67% | 89.27% | 77 |
Orange County CA Housing Market Jan 2009-July 2009
By Namneet Dhaliwal –REO specialist Orange County CA
Source: SoCal MLS August 19, 2009
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There is a significant decrease in number of available homes for sale and increase in pending home sales in Orange County California. When comparing to the number of May 24th 2007, there were 16,238 active listings and only 3,001 properties in pending status, today’s figures are reversed, half actives and almost doubled pending sales. As of August 5th 2009, there are 8,750 active listings in Orange County and 6461 properties in pending status according to SoCal Tempo MLS.
For properties below the median price range, buyers are struggling to get in the market and are willing to pay over the list price. Appraisers are having hard time to appraise to those values. In many cases, buyers end up paying the difference between the appraised value and the sales price. In multiple offer scenarios, buyers are asked to remove the appraisal contingency and show the proof of extra funds. All this leaves genuine families out and people with the cash power get the property. But, this is not the case for properties in higher price range, those are still in declining mode and sit on the market for a longer period.
All this appears to be a result of multiple moratoriums and is not a stable trend, but what could be better time than this to start bringing in the shadow REO inventory in to the market, and let the right candidates buy? Although lending is tough, today’s buyer is more stable than Real Estate Boom time, which could lead to healthy slow but steady recovery in the future.
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Sept. 2007 Unusual Month or Moment of Relief For Foreclosure Turmoil
It is the first time in last twelve months, that foreclosure curve for Orange County CA Real Estate had turned its direction. Although, it is premature to say if it is just an isolated monthly statistic or an early sign of stability but for sure it is reassuring
There are buyers looking for the good deals, including REO and Short Sales.
Homeowners who are late or unable to make their payments, they should be talking to their banks to make a different payment arrangement. At the same time they can market their property for short sale, so if numbers do not work with the bank, they have another avenue to avoid foreclosure on there record. Although there are, tax consequences but short sale may reduce lenders losses and hence tax amount for the seller. "Do it your self," technique in this matter could be costly, a professional opinion should be preferred
Data Source: County Records Research
Created By Nameet Dhaliwal
Orange County CA Real Estate
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Still a Slippery Slope
By Nameet Dhaiwal Realtor
Orange County CA
September 15, 2007
Almost a year ago, default notices and trustee sales notices started to rise. Home sales were slower in 2006 as effects of decreased affordability caused by a sudden increase in home prices due to an ample availability of money. Towards the end of the year, there were too many expired listings. Sales continued to decrease, and then the market got hit by a sudden strictness in the credit score guidelines in March 2007, many fell short of refinance or selling their house, ending up with a default notice. July 2007 got a surprise from the Wall Street when investors suddenly realized the risk and stopped buying 100% financed loans, the nations banking system caught it as a surprise causing many banks to file bankruptcy and close their doors to the employees.
Big giants, such as Countrywide, are still facing challenges and many of the institutions, such as Chase Mortgage and Washington Mutual etc., increased their overnight lending rate for jumbo loans, as now they cannot sell, instead would have to portfolio these loans. There has been a big pendulum swing from one being able to get any loan a year ago, to handicapping the today's homebuyers with best credit and good down payment. Effects of Wall Street's panic in last few months will show its effects in coming months.
This whole turmoil is leading to more defaults and trustee sales and more of these properties going back to the lender, becoming REO (real estate owned) are causing a further burden on these institutions. Although Fed admits about being aware of the situation at this time and promising to take needed steps but for may people its day late and dollar short.
Here are the numbers for last one-year foreclosure activity for Orange County CA Real Estate, starting Sept 2006 to August 2007 according to date collected from County Records Research. Every month it is slipping further and causing uncertainty in the market.
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By Namneet Dhaliwal, Realtor
August 1, 2007
July 2007 marks as the worst month for notices of default and trustee sales in past 12 months. There were total of 1800 homes owners who got these notices. Although a small margin of error is possible due to some duplication.
Majority of these homeowners may not end up loosing their homes. However relatively speaking when numbers jump form 592 in July of 2006 to 1800 for July of 2007, there will be more people loosing their properties. There is a surge of short sale and REO listings in the area.
It does not appear to get better any time soon due to sluggish home sales, increasing inventory and tightening lending guidelines.
Date source:
County Records Research
So Cal MLS
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By Namneet Dhaliwal Realtor, Orange County CA
July 12, 2007
The numbers are conflicting with the actual market value of homes.
Many people look at the median sale price to gauge current real estate market trends. Median sales prices can be very deceptive as it only measures the middle point of properties sold above and below that price regardless of the size, age or location of the property. If one month more homes sold in a higher priced neighborhood of the city, it will bring up the median price. In this market with a low affordability index, increased home listings on the market and tighter lending guidelines, many people are having a hard time keeping up with mortgage payments. It has been difficult for an entry level buyer to buy at today’s price, and as these buyers get pushed out of the market the number of lower end home sales are going down hence resulting in a false increase in the median price. Here is an example of a few cities of Orange County CA Real Estate.
City | Avg Sales Price 06/07 | Avg Sales Price 05/07 | Avg Sales Price 04/07 | Avg Sales Price 03/07 | Avg Sales Price 02/07 | Avg Sales Price 01/07 |
Buena Park | $599,073 | $606,357 | $564,942 | $572,644 | $537,481 | $535,027 |
BREA | $753,476 | $626,460 | $641,905 | $646,825 | $676,585 | $594,220 |
Fullerton | $718,423 | $691,356 | $686,132 | $658,307 | $669,594 | $593,118 |
La Habra | $523,394 | $624,686 | $580,765 | $586,924 | $567,841 | $497,558 |
Placentia | $627,090 | $542,159 | $671,250 | $630,153 | $572,833 | $560,332 |
Yorba Linda | $904,730 | $893,445 | $793,375 | $800,960 | $834,579 | $828,742 |
Average | $687,697 | $664,077 | $656,394 | $649,302 | $643,152 | $601,499 |
Source SoCal MLS
The majority of these cities except Buena Park and La Habra CA for the month of June 2007 are showing increase in the average sales price. Contrary to this, the fact is that the majority of recently sold homes were actually sold below the last sale of a similar home in the area. In conclusion, the median price alone is not an accurate and true measure of the real estate market.
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Brea Chem, Brea - Announcing a price reduction on CA-1519 Zachary Ct. in Brea. A 2,100 sq. ft., 3 bath, 3 bdrm,2 car attached garage 2 story single family home built in 1996, Now 
MLS® #P565661 $675,000 - Just Reduced - Best Price - Best deal for the buyer. Last closed sale at $715,000. So $40,000 saving today, at this price it will not last.
Property information
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Great starter home
• 1,651 sq. ft., 2 bath, 4 bdrm single story "No steps inside the house" - MLS® #P582564 $550,000 - Motivated Seller
South West La Habra, La Habra - This 4 Bedrooms, 2 baths, 2-car garage - single family detached home on a large lot located in prestigious neighborhood of La Habra CA makes it a perfect starter home. New cement driveway, central air, open kitchen, individual laundry room, fireplace and very private backyard. Hardwood floors under the carpet, clean and well maintained home. Great location for working families of Orange County CA and Los Angeles County CA . Bring your best offer.
Property information
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Brea Chem, Brea - We invite everyone to visit our open house at CA-1519 Zachary Ct. on May 20 from 1:00 PM to 4:00 PM.
Property information
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Number of default properties in Orange County CA keeps on creeping up significantly every month, April 2007 being the highest when compared to last few years. April 2006 there were only 480 homes in default. We do not expect any decrease in these numbers any time soon as we have yet to see the effects of tightening lending practices that will dampens home sales further and will leave a number of financially strangled individuals out of the refinance options.
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Brea Chem, Brea - Announcing a price reduction on CA-1519 Zachary Ct., a 2,100 sq. ft., 3 bath, 3 bdrm 2 story "Flat level first and second floor". Now MLS® #P565661 $699,000 - Just Reduced - Best Price.
Property information
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Brea Chem, Brea - Announcing a price reduction on CA-1519 Zachary Ct., a 2,100 sq. ft., 3 bath, 3 bdrm 2 story "Flat level first and second floor". Now MLS® #P565661 $699,000 - Just Reduced - Best Price.
Property information
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March 2007, Month of Highest Notices of Default
During last six months of Default Notices tracking March 2007 ranks the highest. There were 1241 homes into default a compared to 814 in Oct. of 2006. This is clearly a result of higher home prices and over spending by borrowers during last few years. Substantial drop in home sales in last quarter of 2006 and early 2007, made it difficult for many people to be able to turn around and sell their house and take care of their late payments.
Situation is worrisome for the Real Estate Industry, as we have not seen the effects of tightening underwriting guidelines yet. It is good for the long term but in a short term scenario it is going to make it difficult for many people to refinance their homes, which in turn can make above number to go beyond ones expectations.
We are keeping a close watch at our local Orange County Foreclosure numbers and we will offer updated information to our visitors at www.namneet.com
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Changing mortgage practices
Up until recently any one could buy a house, even with FICO score of 580, and recent bankruptcy as long as it has already been cleared. Stated income, no documents and no money in the bank - one could still get a kind of loan. Overlending by mortgage industry caused their own failure.
All above do not apply any more; lenders are changing their guidelines daily. We are heading back to traditional lending. For many banks, borrowers need to have decent FICO score, first time borrowers will need money down 5-10 percent even with a score of 700. Because it is difficult to borrow money, we can call this a tight money market, in this case caused by stricter underwriting guidelines. Many borrowers are sitting on the sidelines waiting for the market to stabilize.
As lending guidelines revert to the late 1990’s and early 2000’s, even with some downward slide in the pricing, it will be much harder to qualify for a loan. It was easier to have a 10 percent down payment of 200,000 in late1990’s vs. now, saving 10 percent of 600,000 to buy the same house. Yes, salaries have gone up since then but gas and electricity, including the cost of renting, has gone up as well.
Buyers who want to buy in the near future and do not have a high cash balance, should prepare themselves for this tight money market and should start taking the necessary steps to be able to qualify when they are ready to buy.
Buyers home work
Down payment
Start saving some money for the down payment, for 100% financing does not exist. Think of yourself as a homeowner starting right now, the money that you would have used to pay the mortgage could go straight into your savings account starting now.
Credit Score
Get a full three Beuro credit report as soon as possible, some places will give you a Free Credit Report. Look for any late payments, delinquents, or collection accounts, etc. Talk to an advisor to see how to resolve those issues, so when it comes time to buy a house you will have a much better credit score, saving you money in the long run in interest rates.
Establishing history
Establish at least five credit lines, if you already have these, keeping the length and history of these is very important. If you have five credit cards, two of which have bad credit and three of which have good credit, do not close all of them. By closing them you will be left with no credit history, or if you close credit cards with good history you are then left with a 100% bad credit history.
Employment
If employed with a company, work history in the same work line for two years is valuable. If self employed, your business should to be registered and your yearly taxes should be able to support your income.
Amount to borrow
Do not be house poor, buy with in your means. When buying your first house think long term. Although nothing is fool proof, a reasonable optimistic approach is a very valuable tool in life. If you are a new graduate and will be getting a decent raise and promotion in your career or will be adding spousal income, you can afford to overstretch your finances. On the other hand, if you have matured in your line of profession and have hit the salary ceiling, stay within your limits.
Getting a loan
There is so much advertisement on the radio, internet, billboards, etc. for cheap money and no closing cost. Many borrowers become confused and fall for one only to find out the truth later when signing the loan documents. Just remember one thing: a dollar costs a dollar, if some one is offering a dollar for 98 cents, they are going to make those two cents somewhere else in the loan. Ask your mortgage originator if you qualify for FHA program. Choose someone who is honest about all the fees and is knowledgeable and professional. You do not need to pay any upfront fees to anybody. Ask for a copy of GFE (Good Faith Estimate). Pre qualify in advance.
Its all about being responsible
If you want to be homeowner, be responsible, discipline your self, pay all your bills on time, and do not be late with payments. Keep a tab on your credit score; you may have to put off that dream vacation or a dream car for some time to save up money. In the end, it will be worth it just to be able to call somewhere your own ‘Home Sweet Home’.