Susan Gregory's Blog

Confused about the various government programs and wondering if any of them can help you with your underwater mortgage?  Recent changes to the Federal Making Home Affordable program have been implemented to reach even more distressed homeowners.  HAFA has been expanded to include rental properties as well as second homes, and you no longer have to be delinquent on your mortgage to qualify for a short sale.
Over 93% of all lenders have agreed to participate in HAFA, and they get paid incentives by the Treasury Department to help distressed borrowers avoid foreclosure.  Generally speaking, it is much cheaper for your lender to accept a short payoff than it is to foreclose and pay all the associated costs.
Why Lenders Accept Short Sales
California has 6,800,000 mortgaged homes, and of those 2,040,000 are underwater!  This lost equity may not be recovered for many, many years and so banks are seeking other methods to clear the 680,000 delinquent mortgages off their books.
Foreclosure hurts everyone-market values decline when a foreclosure hits a neighborhood.  Vacant homes increase vandalism and increase costs to cities, counties and state governments.  170,000 homes are currently in foreclosure, and the majority of those may be eligible for a HAFA short sale.  Unfortunately, over 75% of homes go to the auction block without the homeowner getting the help they could qualify for.
Currently 93,000 homes in California are bank owned-that is a sad and unfortunate statement that means those homeowners missed out on the opportunity to exit their home gracefully, and get some cash in their pocket to help with moving expenses-not to mention the far less damaging effect to their credit that a short sale offers.
Susan Gregory is a Certified HAFA Expert, a Certified Distressed Property Expert, Short Sale and Foreclosure Resource and a Certified Negotiation Expert.  She is also the author of the best seller resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  Visit SusanGregoryRealtor.com for more information.

The year 2012 is off to a bang-a substantial increase in activity is being fed by interest rates below the 4% mark.  Today's buyers are searching for a deal,but many fail to realize that the deal is right in front of their noses!  The median sales price for Orange County homes has dropped 37% since 2006, and interest rates have dropped 39%!  That is why it is so advantageous to be a buyer today-and why you shouldn't ignore the impact that low interest rates have on the overall cost of home ownership.
Here's an example of how important it is to consider all factors of the current housing market:
The median sales price for a single family detached home in the O C in January 2012 was $449,000.  Based on an average interest rate for that month of 3.9%, the monthly payment would have been $2,118.
In 2006, the median sales price was $713,160 and the interest rate was 6.4%, which equated to a monthly payment of $4,461-more than TWICE the January 2012 figure!
Buyers need to realize that interest rates will soon rise-no matter how long the Fed is poised to keep the discount rate at rock-bottom levels, it will eventually have to increase the rate.  The 2012 UCLA Forecast says that mortgage rates will rise to an average of 7.3% within the next couple of years.  At the current median sales price, the mortgage payment would increase by nearly $1000 per month-BUYERS NEED TO ACT NOW!
Susan Gregory is a Realtor, Trainer and Author of two publications for homeowners and agents, including the best selling The Complete Loan Modification Guide kit and Loan Mod Calculator.  She specializes in the South Orange County area of California.
(Stats from OCAR.org-Steven Thomas)

If you have been waiting for the perfect time to jump into the real estate market in San Juan Capistrano, the latest statistics may encourage you to stop waiting and get moving!  The market appears to be making a slow recovery, and gradually becoming less of a buyer's market and more of a seller's market.  Although there are amazing bargains to be had still, the tide seems to be moving towards housing recovery, so don't wait until you miss the boat!

SAN JUAN CAPISTRANO HOME SALES STATISTICS MARCH 2012

1. 1. MEDIAN PRICE-increased from $342,000 TO $399,500, which represents a 17% INCREASE from one year ago.  That is equity that you could have captured!
   2. LISTING PRICE-the average price seller's asked for their home increased by 23%, from $550,000 to $675,000.
   3. NUMBER OF HOMES SOLD- the actual closed sales decreased by 35%, and this can be generally attributed to the extemely low inventory of available homes
   4. NUMBER OF NEW LISTINGS-Again, a decrease of 28% from last year, with only 49 new listings compared with 68 one year ago in March
   5. DAYS ON MARKET-it took less time for the homes to sell, 104 days compared to last year's 118-a 12% decrease.  Bidding wars are common on the Hot Properties!
   6. SUPPLY- there is on a 2 1/2 month supply of homes - meaning that it would only take that amount of time to completely empty the inventory, that is a 35% decrease from this time last year.

These are all strong indicators that our market is finally beginning to recover, and NOW may be the best time to purchase a home in San Juan Capistrano.  The sooner you buy, the greater your chance of catching the new wave of appreciation that is expected to continue in the next year.

Susan Gregory is a Realtor, Trainer and Author, specializing in the San Juan Capistrano, CA area.  She is an active member of the community, and her office is located right across from the historic Mission, in downtown San Juan Capistrano.  SusanGregory1@cox.net

You've decided to put your home on the market-and of course you are hoping for top dollar and a fast sale-here are some simple tips that can help your home attract lots of attention.
Hot Trends That Buyers Love:

1. Mother Earth Inspired:  Nature is popular this year, colors that are found around us like the blues of the ocean, softer shades like sand, seashells look great with bright color accents, tangerine is the big color this year for accents.
2. Fabulous Faux:  Zebra throws, leopard print votives-used in small doses these can make a big statement.
3. Framed Fabrics:  Create an inexpensive piece of artwork by using textiles with fern or tree branch patterns for example.
4. Vintage is in:  Faded area rugs can be used in your color palette-add modern accessories for a pleasing eclectic effect
5. Contrasting Textures:  Silk with suede, shiny with vintage, leather with studs
6. Mirrors:  Reflective surfaces are a great way to add the feeling of space-and not just on the walls.  Use a mirrored tray in a dark corner.

It goes without saying the your home should be immaculate, especially the bathrooms and kitchen.  De-clutter every room, clear away table tops-the general rule is no more than 5 items per table.  Box up your collectibles and personal items-this will help buyers envision THEMSELVES living in the home-and create the emotional commitment you want in order to get the highest purchase offer.

Susan Gregory is a Realtor, Author and Trainer who specializes in the South Orange County area.  Visit SusanGregoryRealtor.com.

The federal Treasury Department's short sale program, HAFA, has been updated again and these new changes mean more homeowners will be eligible for help.  Part of Making Home Affordable, the federal short sale program offers many benefits for borrowers who can no longer afford to keep their home.  The government is determined to help lenders, servicers and borrowers move through this process more quickly and clear out the delinquent loans asap.
HAFA Short Sale Updates:

1. changes effective June 1, 2012, but lenders may implement them sooner
2. HAFA now open to investor properties as well as owner occupied homes
3. Second liens are now paid up to $8500-previously capped at $6000
4. Eligibility reviews completed within 30 days of submission
5. 31% payment critieria eliminated
6. Program extended through 2013
7. Standard credit reporting codes-less credit impact-can buy another home sooner

HAFA provides homeowners with a protection against future liability for the mortgage debt, and eliminates the lender asking for a promissory note or cash contribution from the seller.  Seller's also receive $3000 paid at closing to help with relocation expenses.

Short selling your home is a difficult decision, but getting a fresh start is a wise choice-especially when HAFA provides these important protections and benefits.

Susan Gregory is a Realtor who specializes in short sales and foreclosure prevention.  She is the author of two publications for homeowners and agents, she is HAFA Certified, a Certified Negotiation Expert and a Short Sale Foreclosure Resource Agent.  Visit SusanGregoryRealtor.com for more information.

You may think that you have found the "deal of the century" with that low priced short sale listing, but don't get too excited just yet.  Unlike a standard, equity sale, a listing price on a home being sold with a short payoff is very often not anywhere near what the lender will agree to accept. In fact the final approved short sale price may be substantially higher, making this "deal" not so attractive after all.
Why do listing agents often market a short sale listing with a low-ball asking price?  It's all about getting action-a LOT of action and multiple offers.  Many times the seller is facing a foreclosure and there is not time to wait around for the perfect buyer.  Offering an under-market sales price can start a bidding war, and this means that the price will inch up and up as competition for this great "bargain" heats up.
Here are few things to keep in mind when making an offer on a short sale property:

1. Home is sold AS IS-this means that the seller will not be fixing any issues that may be discovered during a home inspection.  In fact, many short sale lenders will only pay for a Termite Inspection, NOT any termite work that needs to be done.  The buyer will be responsible for any repairs needed, which should be considered when making your offer.
2. There may be other outstanding liens on the property that the buyer will be asked to pay or contribute to.  HOA deliquencies, second liens, etc can all cause a buyer to end up facing a much higher end-cost than they anticipated.
3. The short sale negotiation can take months-this is not a transaction for the buyer who needs to close escrow quickly. 
4. The final terms and conditions are all subject to the short sale lender-leaving very little leverage for the buyer.  Either you agree to final approval terms or you can cancel the transaction.  If the seller does not agree to the final lender terms and conditions, then the seller can cancel the transaction. 
5. Make sure that you have ALL the critical information needed to formulate a viable purchase offer before you decide on your actual purchase offer amount.  A good buyers agent will do a lot of research so that you know as much as possible about the liens, miscellaneous charges, payoffs, etc.  It is possible to get a great deal on a SHORT SALE, just be sure you know as much as possible ahead of time.
   

The last thing you want to do is waste months and months of your time on a short sale that ends up not being the great deal you thought.  You might have missed out on your perfect home in the meantime!  Always work with an experienced short sale agent-whether buying or selling, it is critical to really understand how this complicated process works and achieving the end result you want.

Susan Gregory is a Realtor, trainer and Author of two publications for homeowners, including the best selling kit, The Complete Loan Modification Guide kit and Loan Mod Calculator.  She is a Certified Negotiation Expert, a Short Sale Foreclosure Resource Agent, a Certified HAFA agent (federal short sale program).  She has helped thousands of  distressed homeowners.  Visit SusanGregoryRealtor.com for more information.

My heart aches for my clients faced with the decision to short sale their home-many times our first meeting is really just about the "if onlys" and "what ifs" and of course, "Why did this happen to us?"  Emotionally, one of the most difficult thigs to do is to let go of your home, the place where your family and friends gather and memories are made. 
Deciding to short sale your home is really a process, and often the decision is not made until the emotional mind allows the rational mind to take over.  This is easier for some people than for others, but once you are able to detach yourself and analyze just the financial aspects, often the right decision becomes crystal clear.
Being a homeowner is a point of pride, but for many folks it is also about having stability and a good investment where your hard earned money is working for you.  But if you step back and look at what has happened to this particular investment, you will realize that sinking more money into a declining asset simply does not make any sense.
Think about it as though your home were a stock that you were heavily invested in-each month the stock went down but you had to continue buying more of that same losing stock. It would not take you long to say "Enough of this-I am just throwing good money after bad!"  To add insult to injury, the threat of foreclosure and trying to deal with your lender just adds to this very stressful situation.
Financial experts say that over $750 Billion has been lost in home equity over the last few years, and that amount cannot be recovered anytime soon.  A normal market shows an appreciation of about 1% per year-and at that rate we will not see a return to equity in most homeowners lifetime.
So, the rational mind would decide to short sale, get the finances back on track, and then buy a new home in a couple years for MUCH less than the previous property- and have a performing investment at current market value.
Now, if only the emotional mind would get out of the way so that the rational mind would get down to what needs to be done!
Susan Gregory is a Realtor, trainer and Author of two publications, including the best selling resource, The Complete Loan Modification Guide kit and Loan Mod Calculator.  She is a Short Sale Foreclosure Resource Agent, a HAFA Certified Agent and A Certified Negotiation Expert who has helped hundreds of homeowners find solutions.