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David J. White's Blog

By David J. White | Agent in 90266
  • Types of Distress Sales

    Posted Under: Home Buying in Manhattan Beach, Home Selling in Manhattan Beach, Foreclosure in Manhattan Beach  |  July 24, 2014 4:59 PM  |  29 views  |  No comments


    In the current strong market for real estate, distress sales have dropped to a minimal level in the South Bay and most areas.  Investors snap them up when prices are right. Nonetheless, now and then I'm asked what the principal types of distress sale terms mean.  Here's a refresher:

    First, a link to an article from my real estate blog back in 2011 that gives an overview of the different types of distress sales: 
    http://www.beachcitydigs.com/2011/12/post-recession-real-estate-terms-great.html

    In a short sale, the owner offers a home that's underwater (its value is less than the outstanding mortgage loans plus sales costs) for sale through a Realtor and the bank, if they approve an offer, accepts less than they are owed, forgiving the rest of the debt.

    In pre-foreclosure, the bank has given the owner a Notice of Default, saying in effect “pay up or we will sell your home in a foreclosure sale.  Some owners list their homes after receiving a Notice of Default, but they are typically in denial and won’t actually sell their home, but if they do it’s typically for cash or a very fast loan.  [expansion on this topic:  Here's the thing about pre-foreclosures:  It's just a term meaning the homeowner has been served a Notice of Default (that's a 90-day waiting period notice in California).  If the homeowner, considering this fact, decides to sell their home, then it comes out on the MLS as a Notice of Default sale.  All the rest (those who don't list their homes) are just that:  owners very late on their mortgages who have NOT decided to sell.  So the fact that eager websites like to tell us how much trouble these people are in doesn't translate into those homes actually being for sale, and the lender has no standing to sell them.]

    Foreclosure is when the Notice of Default has matured and the bank has scheduled a foreclosure sale (the ones you hear about on the “courthouse steps”).  At this point, you have an angry seller who is still probably in denial but might sell for cash (there’s no time for buyer to get a loan).

    Foreclosed or Real Estate Owned (REO) properties have been foreclosed by the lender and taken into their ownership.  The foreclosure is over, now the bank just owns the home.

    And thank God most of these are over! -David

    As always, I'm never too busy for your referrals or inquiries!
  • A Good Listen on Personal Financial Responsibility

    Posted Under: Home Buying in Manhattan Beach, Financing in Manhattan Beach, Home Ownership in Manhattan Beach  |  May 22, 2014 6:47 PM  |  183 views  |  No comments


    A good listen and really excellent commentary on personal financial responsibility and steps that are within our control. By Steven Spierer, who also happens to be my go-to real estate attorney:
    Steven Spierer, 5/17/14 « Talk Radio One
  • Top Producer at South Bay Brokers

    Posted Under: Home Buying in Manhattan Beach, Home Selling in Manhattan Beach, In My Neighborhood in Manhattan Beach  |  February 11, 2014 3:52 PM  |  275 views  |  No comments

    Proud to be among this group of service-oriented, top-producing real estate professionals at South Bay Brokers


  • Map of the 2010 US Census

    Posted Under: General Area in Manhattan Beach, Market Conditions in Manhattan Beach, Home Buying in Manhattan Beach  |  March 23, 2012 4:04 PM  |  1,330 views  |  No comments

    Google has finished an amazing project of Mapping the 2010 U.S. Census, published in the New York Times.  Click on the link for a fascinating graphic showing what's happening across the US! - David
  • More on Keynesian Economics: Next Topic for Today's Big Fail?

    Posted Under: Market Conditions in Manhattan Beach, Home Buying in Manhattan Beach, Financing in Manhattan Beach  |  November 1, 2011 11:29 AM  |  2,409 views  |  No comments

    TodaysBigFail is a website and Facebook page devoted to videos of things going horribly wrong.  I'm nominating the fatal flaws of Keynesian Economics as its next topic!


    So here's more on the demonstrated bust of Keynesian (stimulus) economics, touched on in this morning's post. This from none other than the nonpartisan think tank RAND Corporation: Where Keynes Went Wrong.

    The failure of the US government's massive stimulus actions is as plain as day to all with an open mind. We'll be paying for those colossal mistakes for years to come, and that's doing nothing but damage to the real estate and jobs markets.

    That the Keynesian theory upon which they were based is fatally flawed is a lesson for all to remember, most notably economics professors, textbook authors, politicians, and voters.  These diseconomic theories equating government spending and taxation with the merits of business investment and consumer spending have been taught, practiced, and sold like snake oil for far too long.  Just sayin.'

    -David

    P.S.  Don't let the politicians talk you into jumping over anything on a BMX bike either!

  • It's Not Easy Managing Green (the Money Supply, Interest Rates, Inflation...)

    Posted Under: Market Conditions in Manhattan Beach, Home Buying in Manhattan Beach, Financing in Manhattan Beach  |  November 1, 2011 11:25 AM  |  2,348 views  |  No comments


    As mentioned in this article from New York Times (a source seldom quoted by this blogger), Ben Bernanke's Fed Panel Is Divided on Direction.  Seems "too little too late" is the new "too much too soon" when it comes to his attempts to "manage" interest rates and inflation.

    Granted, it's a thankless job.  But monetary theory, the antithesis to Keynesian economics (whose theories the current administration has conclusively disproved), tells us that these economic factors are the results of supply and demand.  These may be positively influenced by communicating clear policies and sticking to them.  Ultimately, however, they are set by the market, meaning that attempts to manage them require market intervention, which tends to be costly and short lived. - David

  • Peaceful Living with your Mother-in-Law

    Posted Under: Home Buying in Manhattan Beach, Remodel & Renovate in Manhattan Beach, In My Neighborhood in Manhattan Beach  |  September 26, 2011 11:08 PM  |  2,861 views  |  No comments

    This Forbes.com article highlights a new book by Michael Litchfield, entitled in-laws, outlaws and granny flats. Our aging population is resulting in a number of shifts in homebuyer preferences, including elevators, main floor bedrooms, and mother-in-law quarters.

    In the Beach Cities, that can mean a guest house (yes, a few properties have them) or even "bootleg" quarters crafted from a re-purposed basement or suite.

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