DataQuick Information Systems, a company that monitors trends and data in real estate, identified Riverside County as one of three counties in the state with the most at-risk mortgages vulnerable for foreclosure.
During fourth quarter of 2006, 4,528 default notices were sent to property owners in Riverside County, which is an astounding 182 percent increase over the same period a year earlier. The number of default notices sent out statewide numbered 32,273, which is the highest recorded number since the third quarter of 1998.
Interestingly, inland-area property values have continued to inch upwards in the last year, according the California Association of Realtors. The November median price of a home in the Riverside-San Bernardino area was $401,460 – 4 percent more than in November 2005, CAR reported. However, home and condo sales plunged 46 percent over the same 12-month span.
A major factor contributing to the increase in foreclosure activity is the prevelance of borrowers who got into short-term ARMs in which they (or their loan) officers overstated their income enabling them to qualify for more home than they could really afford.
Likewise, the increasing number of complex and/or misleading loans is also to blame. For example, many banks offer 5-year negative amortization Option ARMs with a 1% start rate amortized over not 30, but 40 years. The borrower believes they have a fixed minimum payment for 5 years, when in fact their loan will "re-set" in just 2 to 3 years.
One wonders how the banks can offer such loans? Most banks state in the fine print that the loan will reset at 5 years OR if the loan reaches 110% of the original principle. Often times the actual interest rate is so high much higher than the minimum payment that borrowers can accumulate $20,000+ in deferred interest per year. Not all Option ARMs are at risk. There are other lenders who allow the loan to reach 125% or 10 years before the loan resets. A borrower in a loan with these terms is in a fairly safe position.
These recent trends underscore the importance of working with a reputable mortgage broker that is qualified to accurately assess your situation and put you in the most appropriate loan. There are loan programs available that offer both low mortgage payments and long-term stability.
If you feel you may be at risk and you'd like a free analysis of your situation, give me a call at (800) 975-8130 or email me at loanguru@altruityfunding.com.
- Jeremy Kossen
Monday, January 29, 2007
Winter Home Selling Tips
Does selling your home during the winter seem like a daunting task? It doesn’t have to be. If you follow a few simple rules, it can be a lot easier than you expect. In fact, winter can actually be a great time to sell. First off, there’s a lot less competition than the spring and summer months. Secondly, buyers who are looking for a home during the winter tend to be serious and motivated.
Here are a few tips to keep in mind:
1) Staging: Consider hiring a professional “stager” to stage your home. A good home stager can make your home feel more inviting and set it apart from your competition. A good stager can usually work with your existing furniture to create a welcoming environment.
2) Optimize Lighting: Dark is depressing, so optimize the lighting in your house to give it the appearance of being light and airy. Just think about it: if it’s gloomy outside, a bright home is sure to give prospective buyers a positive impression of your house. To ensure there’s lots of light in your house, use high wattage bulbs, make sure all the lights are already on, and make sure you only show your home during the high-daylight hours. If you have dark rooms, you can enhance light by placing spotlights on the floor behind your furniture.
3) Create a Mood: Consider putting on some very soft background music. Make sure there are pleasant smells throughout your home, but do not use anything too strong that could be off-putting to some buyers. Avoid deodorizers ard perfumes which are often overwhelming and some people may also be allergic to the strong scents they emit. Your best bet is to bake some bread or cookies, which will create a really homey and inviting atmosphere. Just make there’s some tasty snacks available so your buyers aren’t disappointed or leave hungry.
4) Remove Shoes Before Entering Home: Have your prospective buyers either remove their shoes before they enter your house or provide paper booties they can wear: Not only will this keep your carpet and floors clean, it will reassure your buyers that you take excellent care of your home.
5) Don’t Overlook the Details: Wash all the windows. Grimy windows are a sign of a poorly cared for home. Clean any cobwebs. Remove unneeded items from your garage and storage spaces. Put these items in public storage. Your house will appear bigger as will your storage spaces. Clean your refrigerator out, vacuum daily, wash and wax your floors, polish chrome fixtures and clean your mirrors. It may seem like a lot of work, but it will be worth it!
These are just a few tips to make the home selling process easier during winter. It’s not a bad idea check out the model homes in new developments. You’ll often pick up some ideas.
Don’t forget to call me for a free market analysis.
Good luck, or as they say in Italy: buona fortuna!
Here are a few tips to keep in mind:
1) Staging: Consider hiring a professional “stager” to stage your home. A good home stager can make your home feel more inviting and set it apart from your competition. A good stager can usually work with your existing furniture to create a welcoming environment.
2) Optimize Lighting: Dark is depressing, so optimize the lighting in your house to give it the appearance of being light and airy. Just think about it: if it’s gloomy outside, a bright home is sure to give prospective buyers a positive impression of your house. To ensure there’s lots of light in your house, use high wattage bulbs, make sure all the lights are already on, and make sure you only show your home during the high-daylight hours. If you have dark rooms, you can enhance light by placing spotlights on the floor behind your furniture.
3) Create a Mood: Consider putting on some very soft background music. Make sure there are pleasant smells throughout your home, but do not use anything too strong that could be off-putting to some buyers. Avoid deodorizers ard perfumes which are often overwhelming and some people may also be allergic to the strong scents they emit. Your best bet is to bake some bread or cookies, which will create a really homey and inviting atmosphere. Just make there’s some tasty snacks available so your buyers aren’t disappointed or leave hungry.
4) Remove Shoes Before Entering Home: Have your prospective buyers either remove their shoes before they enter your house or provide paper booties they can wear: Not only will this keep your carpet and floors clean, it will reassure your buyers that you take excellent care of your home.
5) Don’t Overlook the Details: Wash all the windows. Grimy windows are a sign of a poorly cared for home. Clean any cobwebs. Remove unneeded items from your garage and storage spaces. Put these items in public storage. Your house will appear bigger as will your storage spaces. Clean your refrigerator out, vacuum daily, wash and wax your floors, polish chrome fixtures and clean your mirrors. It may seem like a lot of work, but it will be worth it!
These are just a few tips to make the home selling process easier during winter. It’s not a bad idea check out the model homes in new developments. You’ll often pick up some ideas.
Don’t forget to call me for a free market analysis.
Good luck, or as they say in Italy: buona fortuna!
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