Your Guide to San Fernando Real Estate

I just finished crunching some numbers and thought it was interesting what I found.

During the month of January, there were 52 single family homes that closed escrow in Sylmar. On average these are 1,513 sq. ft. homes that were listed for $299,000 and sold for $303,000. The homes were on the market for about 44 days before going into escrow. Of the 52 homes, 22 were standard sales, 11 were short sales, and 18 were REOs. In terms of buyer financing, 20 buyers used conventional (20% down) financing while 17 obtained FHA loans. There were 7 cash purchases and 4 Veteran's loans.

It is very encouraging to see that 42% of the sales were standard sales and that prices are selling close to their list prices.

Condos and townhouses are still a different story.  There were 20 condos or townhomes that closed escrow during the month of January. On average these were 1, 320 sq. ft. homes that were listed for $197,500 and sold for $189,500. The homes were on the market for over 135 days before going into escrow. Of the 20 condos and townhomes that sold only 4 were standard sales -- 5 were short sales and 11 were Bank owned. In terms of buyer financing, 4 buyers paid cash, 9 used conventional financing, and 6 were able to obtain FHA financing.

There still appears to be some work that needs to be done regarding the condos and townhomes in Sylmar and hopefully we will see the prices stabilize a bit more.

If you are considering buying, selling, or leasing your home, please contact me. I will work hard to make sure that you are satisfied! I can be reached at (818)599-1589.

If you are interested in having this data for your specific area, please let me know -- I'd be happy to put it together.

I had a busy Sunday and have several new listings coming to the market...

Mountain Glen - Fantastic family home
4 bedroom, 3 bath with city lights view
Short Sale - $365,000 + $125/mo HOA

Sylmar Manor - Senior Mobilehome Park
Beautiful 1980 Goldenwest in excellent condition
2 bedroom, 2 bath with newer roof, appliances, paint, tile flooring
$60,000 + $600/mo space rent

Santiago Estates
#460 - Lovely home with bright, spacious living areas, fireplace, sunny white kitchen, 3 comfortable bedrooms, 2 bathrooms, lots of storage. Courtyard patio has spa. Private backyard is wonderful for relaxing. Garage has been converted into bedroom. $130,000 + $1000/mo land lease

#563 - Beautifully upgraded 3 bedroom home with cherry laminate flooring, granite counters, newer appliances. Comfortable sized rooms and a 2 car garage. Short sale - $95,000 + $1,000/mo land lease

Contact me if you are interested in any of these properties!

If my business is any indication of what is going on in the real estate market, it appears that we will at the very least have more inventory available in the near future.

Since the beginning of the year, I have listed a manufactured home and put another into escrow. I have also helped one of my buyer clients to put a bank-owned condo into escrow. Still struggling to get a short sale moving with Bank of America.  They have had the offer since April and are now ordering a second BPO on the property. Hopefully this time they will review the offer and move forward. Another home that I have listed is in escrow and we are waiting for the appraisal results. Keep your fingers crossed that appraisers have heard the news that we need to help the struggling housing industry!

In the next few days it appears that I will be putting one, two, or three manufactured homes on the market. Two would be short sales and one would be a standard sale.

There is also the possibility of another home in the Mountain Glen neighborhood that could become available -- it will also be a short sale.

Don't let short sales frighten you -- they can be done...

Short Sale Myths

A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.

Myth #1 – The Bank Would Rather Foreclose than Bother with a Short Sale

This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.

The qualifications for a short sale include:

1. Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
2. Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
3. Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Myth #2 – You Must Be Behind on Your Mortgage to Negotiate a Short Sale

While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.

If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.

Myth #3 – There is Not Enough Time to Negotiate a Short Sale Before My Foreclosure

This is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes.

The foreclosing party—in most cases a lender—can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.

Myth #4 – Listing My Home as a Short Sale is an Embarrassment

It is understandable to have reservations about letting the world know that you owe more on your home than it is worth. However, according to recent estimates, more than one out of eight homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution.

With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone.

Myth #5 – Short Sales are Impossible and Never Get Approved

This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not.

For example, agents with the Certified Distressed Property Expert® (CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, more and more short sales are being approved regularly. This is far from an impossible process.

Myth #6 – Banks are Waiting on a Bailout and Not Accepting Short Sales

You may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses.

Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale.”

Myth #7 – Buyers are Not Interested in Short Sale Properties

This is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales.

For buyers, short sales and foreclosures have become synonymous with “good deals.” More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.

In conclusion, Agents with the CDPE Designation have been trained in all aspects of the short sale process, and know how to deal with the parties involved in foreclosures. Finding a CDPE can explain what options you have, and get you on the path to recovery.

During his State of the State address, Governor Schwarzenegger today announced his 2010 proposals for California. Included in the proposals is a recommendation to set aside $200 million for a new round of $10,000 state tax credits for first-time home buyers. The proposal expands upon the initial $10,000 state tax credit by including both new and existing homes. Last year’s tax credit applied only to new homes.

The tax credit could be combined with the recently extended and expanded federal tax credit for home buyers.

Tax Credits Open to First-Time and Repeat Buyers
 
BY ANA MARIA COLON, PRESIDENT, AND DAVID WALKER, SRAR MEDIA CONSULTANT

 
Tax credit of $6,500 may not be large enough to seal the purchase of a home in high-priced Southern California, yet for many move-up — or trade-down — buyers it could well make buying now much more enticing.