North OC Housing News

Get our exclusive home finance guide today!

Irvine Renter — Mon, 26 Nov 2012 03:56:34 +0000

Are you considering buying a house, but you don’t understand the lending process or what documents are required?

I can assure you that you are not alone. We assembled this guide to help. It contains everything you need to know to prepare yourself for the journey to home ownership.

Realistically, you can’t start shopping for your new home until you get per-qualified for lender financing. Sellers won’t consider your offer seriously until you are per-qualified because they fear you won’t be able to get a loan and close the deal. If sellers won’t take your offers seriously, you are wasting your time. Get per-qualified and begin your journey.

So how do you get per-qualified? What else do you need to know about home loans? Which loan programs are right for you, and which will cause you to lose your home in a foreclosure?

Start your home search in the right direction. Get this FREE guide today!

GDE Error: Unable to load profile settings

It’s totally FREE, and you can print this guide out to read at your leisure. Sign up below!

Mortgage Basics – 4
What’s a mortgage? – 4
What’s included in my monthly payment? – 4
What is an escrow account? – 5
Mortgage Process – 5
Step 1: Determine your budget – 5
Step 2: Find a Lender – 5
Step 3: Get Pre-Approved – 6
Step 4: Go Find Your Next Home – 7
Conservative House Financing – 7
Mortgage Interest Rates – 8
Types of Borrowers – 10
Types of Loans – 11
Conventional 30-Year Amortizing Mortgage – 12
The Interest-Only, Adjustable-Rate Mortgage – 12
Negative Amortization Mortgages – 14
Stated Income Loans – 18
Down payments – 20
Equity Components – 21
Initial Equity – 22
Financing Equity – 22
Inflation Equity – 24
Speculative Equity – 24
Mortgage Equity Withdrawal – 26
The Fallacy of Financial Innovation – 29
Summary – 32
FHA Loan Requirements – 32
FHA Mortgage Insurance – 33
FHA Loan Limits – 34
Loan Checklist – 35
Closing Costs – 35
FHA Debt Ratios – 36
Mortgage Payment Expense to Effective Income – 36
Total Fixed Payment to Effective Income – 37
FHA Credit Issues – 38
No Credit History – 38
Chapter 13 Bankruptcy – 38
Chapter 7 Bankruptcy – 38
Late Payments – 39
Foreclosure – 39
Collections, Judgments And Federal Debts – 39
FHA Financing and Loan Assumption – 39
Utilize fixed-rate assumable financing – 39
Maximize your down payment (within reason) – 40
Expect no home-price appreciation – 40
Assumption of Mortgage – 41
Lenders despise mortgage assumptions (and they should) – 41
Understanding by example – 42
Sell faster or sell for more – 43
How to use owner financing to obtain equity from assumable loans – 44
Seller financed second mortgages – 44
Wrap-around mortgages – 45
Facts about loan assumptions – 46
Be Wary the High Cost of FHA Insurance – 47
Accelerated Mortgage Payoff – 47
Pay more when you can – 48
Refinancing for accelerated amortization – 48
Time to Payoff – 49
How Not to Manage Your Debt – 50
What is a Ponzi Scheme? – 50
Ponzi Schemes of debt – 51
Going Ponzi – 51
The Ponzi limit – 53
The Fate of Ponzis – 54

What you will learn

Mortgage basics for the absolute beginner
The types of lenders operating today
Conservative house financing
The difference between a fixed-rate and an adjustable-rate mortgage
Why you should avoid interest-only and negative amortization mortgages
How mortgage interest rates are determined
The components of home equity
The difference between financing equity and appreciation equity
The difference between inflation equity and speculative equity
The perils of mortgage equity withdrawal
Why financial innovation fails
Current requirements for an FHA loan
The nature of mortgage insurance
A checklist of items you will need to obtain a loan
A list of closing costs you will pay to execute the loan
Allowable debt-to-income ratios
FHA financing and loan assumption
The advantage of paying down a mortgage early
How not to manage your mortgage debt
And much more!

Get started on your journey to home ownership buy getting this guide to home financing. It’s an essential first step.

To rent or to own: that is the question. Our decision guide will help you find the answer

Irvine Renter — Mon, 26 Nov 2012 03:25:59 +0000

To rent or to own: that is the question.

Whether ’tis nobler in the mind to suffer The slings and arrows of outrageous fortune with real estate ownership, Or to take arms against a sea of troubles and rent instead.

Are you perplexed about what to do? Is owning always the best choice? We have developed a guide to help you answer this question critical to your financial and emotional well being.

Renting versus owning is both an intellectual, financial decision and an emotional one. The financial decision is first and foremost an analysis of the comparative cost of renting versus owning. Some people spend a great deal of effort evaluating the costs of ownership to determine if is a correct decision, but many people do not. Some people make the decision to purchase the most expensive asset they will ever own with no analysis at all. The decision to buy a house is primarily an emotional one. Even those who go through all the analysis generally only do so to provide rationalizations for their emotional decision.

Don’t make the same mistakes as many others who made a foolish emotional decision, paid too much, then lost their homes in a foreclosure.

Get this guide today!

GDE Error: Unable to load profile settings

It’s totally FREE, and you can print it out to read at your leisure. Sign up below!

3 – Renting Versus Owning
5 – Reasons to buy a house
5 – Have a place to raise a family
5 – Be a part of a neighborhood and community
6 – Following parent’s advice
6 – Build equity and hedge inflation
7 – Acquire an asset to pass on
7 – Gain a tax deduction
7 – Reasons not to buy and rent instead
7 – Flexibility to move
8 – No money spent on upkeep
8 – Monthly payments exceed comparable rental
9 – Take on too much debt
9 – Ties up too much savings
10 – Mistakes and fallacies about renting or owning
10 – Buying for rapid appreciation
11 – Renting is throwing away money
12 – Owners are better people than renters
13 – What is Ownership?
13 – A Conceptual History of Real Estate Ownership
15 – Money Rentership (Loan Ownership)
16 – What is Rental Parity?
16 – Rents Capture Premiums
17 – Moving Beyond Rental Parity
17 – Uniqueness and Quality
18 – Reservoir of Value
19 – How Much a House Really Costs
19 – Mortgage Payment
20 – Property Taxes
21 – Homeowners Insurance
21 – Private Mortgage Insurance
22 – Special Taxes and Levies
22 – Homeowner Association Dues and Fees
23 – Maintenance and Replacement Reserves
23 – Tax Savings
24 – Hidden Savings
24 – Lost Down Payment Interest
25 – Ownership Cost Math
27 – Cost of Ownership Detailed Analysis
27 – Four Major Variables that Determine Market Price
28 – Borrower Income and Wage Inflation
28 – Prices should mirror incomes
29 – Allowable Debt-to-Income Ratios
30 – Interest Rates
31 – Interest Rates Impact Mortgage Balances
32 – What happens when interest rates rise?
35 – Down payment requirements
36 – Savers gain advantage bidding on real estate
37 – PITI
37 – Property Taxes
38 – Mello Roos Taxes
39 – Determining Mello Roos
40 – Homeowners Insurance
40 – Homeowner Association Dues and Fees

What you will learn:

The main reasons people chose to buy a house
The main reasons chose to rent instead
The false beliefs people rely on that often gets them in trouble
Is buying a house really a good investment?
Is the tax deduction worth the price?
The downsides to home ownership
The negatives of renting
The “bundle of rights” people actual own — it’s not what most people think
How to compare renting to owning
The features that add value to residential real estate
The detailed cost of ownership of any house
Will you need private mortgage insurance?
How much the tax deduction will really save you
The opportunity cost of buying a home
The four variables that determine the purchase price of any property
How wage inflation impacts house prices
How debt-to-income ratios impact house prices
How interest rates impact house prices
What happens when mortgage interest rates rise
How much you should expect to put down
What PITI means, and why it’s important.
What Mello Roos taxes are
And much more!

Get this guide, and you will make the right choice for your family. Guaranteed!

OC Housing News FREE Guides!

Wouldn’t you be embarrassed to overpay by $100,000? Our report saves you money.

Irvine Renter — Mon, 26 Nov 2012 03:22:13 +0000

OC Housing News monthly market report and newsletter

OC Housing News monthly market report and newsletter provides a clear picture of the health of the housing market. Both buyers and sellers find the information timely and relevant to their decision to buy or sell a home. The collapse of the housing bubble clearly showed valuation matters, and real estate does not always go up. The OC Housing News report answers the two most important questions to buyers and sellers: (1) Are current prices over or under valued, and (2) what direction are prices headed, up or down. Armed with better information, people make better decisions.

Too much information

There is too much information about housing floating around the Internet, and most of it is bad. It is easy to take data and create pretty charts and graphs that don’t provide any useful information someone might use to make a good decision. The OC Housing News has eliminated the useless information and distilled the market down to three key pieces of information: (1) value relative to rental parity, (2) yearly change in resale prices, and (3) yearly changes in rental rates.

The importance of rental parity

Rental parity because it represents the threshold of affordability. When prices are above rental parity, it costs more to own than to rent, so owning is often not a wise financial decision. Owning may still be right for people, and many are willing to pay the premium to own to obtain the emotional benefits of ownership; however, on a purely financial basis, paying more than rental parity is generally not wise because prices will inevitably return to this price level in time.

When prices are below rental parity, it costs less to own than to rent, so owning under these circumstances is generally a wise choice. Since a buyer who pays less than rental parity for a house is saving money, there is a clear financial benefit obtained irrespective of fluctuations in resale price.

When the cost of ownership is less than rental parity, an owner is far less likely to be forced to sell at a loss. The property can always be rented to cover costs rather than sell for a loss. Further, this ability to rent and at least break even provides the owner with flexibility to move if necessary. Mobility to take a new job or buy a different house is denied to those who overpaid and who are stuck paying more in the cost of ownership than they can obtain in rent.

With these advantages, buying at a price below rental parity using fixed-rate financing is critical. Every buyer should consider rental parity in their buying decision.

How rental parity is calculated

Each month I calculate rental parity using aggregate data from the MLS. It requires two data points to make the calculation:

Average rental rate
Current mortgage interest rate on 30-year fixed-rate loans.

I also make some key assumptions.

First, as mentioned previously, I assume a 30-year fixed-rate mortgage. It’s the only mortgage product which provides sufficient payment stability to ensure the property will always be affordable.

Second, only a percentage of the rent can be put toward a mortgage payment. It’s not as simple as assuming the rent equals the payment.

The payment is generally smaller than the actual cost of ownership. The cost of ownership usually includes other costs like HOA dues, Mello Roos, maintenance expenses, and insurance. These costs erode the buying power of the rental payment. There are offsets with tax breaks and loan amortization, but generally, the cost of ownership is bigger than the payment.

Conventional financing

There are two assumptions which change depending on the type of financing used. A buyer using conventional financing does not pay private mortgage insurance or FHA insurance premiums. This means the cost of ownership is much closer to the actual payment. Or looked at another way, the rent which would be applied to the payment would be higher. When I make these calculations, I assume 90% of the rent could go toward making a loan payment. In areas with no HOAs or Mello Roos (like today’s featured property) that assumption is too low, but in areas where the HOA and Mello Roos is high, the assumption is too high.

I take 90% of the aggregate rent as a potential loan payment. I calculate the mortgage balance such a payment would service at today’s interest rate. The result is the loan component of rental parity. To the loan balance, I add an appropriate down payment. For conventional buyers, the down payment applied is 20%.

For example, if an area or zip code has an aggregate rent of $2,500, I will assume $2,250 is available to make a mortgage payment. At 4% interest, a $2,250 payment would service an astounding $471,288. If $471,288 were the loan balance, the down payment would be $117,822. The sum of those two is $589,110 which represents the rental parity equivalent of a $2,250 payment applied to a 4% fixed-rate mortgage using conventional terms.

(see an example from Irvine in 2012 below)

This report has value. Sign me up!

Do you find these market reports helpful? Sign up for our monthly market newsletter.

Name	*
Email	*
Phone	*

Year-over-year percentage change

Real estate market exhibit strong seasonal patterns and a strong tendency to trend for long periods. The only way to gain an accurate understanding of what’s happening in the market is to ignore the month-to-month fluctuations and focus on year-over-year changes. Have you ever read the OC Register’s real estate reporting from DataQuick? They often show the monthly changes which fluctuate wildly. This information is often useless or outright misleading as to the real direction of prices. These fluctuations make for interesting headlines, but they don’t provide any meaningful information to help buyers or sellers make an informed decision.

Per-Square-Foot Basis

Further, I prefer to look at data on a per-square-foot basis. The median is too susceptible to fluctuations based on the change of mix to be reliable. Looking at per-square-foot costs provides a more accurate picture of what buyers are obtaining for their money. When prices are volatile, the mix of sales may change causing wild swings in the median sales price which is not representative of the prices of individual properties in the market. Looking at per-square-foot data eliminates much of the data distortion caused by a change in sales mix.

Sales prices on a per-square-foot basis

Sales prices on a per-square-foot basis reveal much about what people are actually obtaining for their money. If buyers in a market are able to pay $500,000 for properties, the median may stay at $500,000, but if high-end properties are competing for buyers, they may be lowering their prices to attract buyers. When these buyers purchase, they still spend $500,000, but they get a better home for the money. Median sales prices reveal what people are spending, but only price per-square-foot reveals the value buyers are getting for their money.

(see an example from Irvine in 2012 below)

Rents on a per-square-foot basis

Rental parity is a comparison of the cost of ownership to the cost of rent. Therefore, the direction of rental rates is important to the health of the housing market. Rising rents will eventually put pressure on prices as people will chose to buy to save money. Falling rents will have the opposite effect. If prices are rising and rents are falling, a bubble is forming. If rents are rising and prices are falling, a bottom is forming.

(see an example from Irvine in 2012 below)

If you know the value relative to rental parity, the yearly resale price momentum, and the yearly change in rents, you can evaluate the risk of short-term and long-term price declines. This is valuable information for making an informed decision regarding buying or selling real estate.

I want to have this great report. Sign me up!

Do you find these market reports helpful? Sign up for our monthly market newsletter.

Name	*
Email	*
Phone	*

Rating scale of 1 to 10

When I first contemplated a rating system, I considered an A to F grading system like the HELOC abuse grading system. As I worked this this system, I found the nuances were lost with only five potential grades. The next most logical choice was a rating scale from 1 to 10. It’s intuitively easy to understand, and it provides enough gradation to capture the subtle differences between markets under varying market conditions.

System Criteria

When considering the financial implications of buying a home, the non-kool-aid intoxicated want to know if now is a good time and if the location they are considering is a good buy. The rating system provides an accurate and unbiased method of evaluating the market. It is purely mechanical and ignores the narrative spun by market pundits. At times this narrative is important, such as in 2009 and 2010 when the artificial market props delivered a false buy signal, but much of the time the narrative is better off ignored because it is polluted by the manipulations of realtors.

I wanted the system to produce results consistent with my view of the housing market. It should have said not to buy during the bubble, but it should have given positive signals beforehand. A permanently bearish system is as useless as the realtor’s permanently bullish ones. The system should produce relatively consistent results from month to month with few abrupt changes. Housing markets don’t change quickly, so the results should not be so volatile as to suggest buying one month and catastrophe the next.

The system also needed to respond to the relative importance of changes in the market. The system uses the three key variables I tract: valuation, resale price change, and rental price change. By far the most important of these variables is valuation. It is also the least understood and most widely ignored fundamental by most homebuyers.

Valuation rating

Valuation is the least understood, yet most important, aspect of a housing market. Economists look at various ratios including price-to-income, price-to-rent, and other aggregate measures to attempt to establish valuation metrics. Each of these has strengths and weaknesses, but each of them fails because they don’t directly connect the actions of an individual buyer to the activity in the broader market. For this reason, I strongly favor rental parity as the best measure of valuation. Rental parity ties together income, rent, interest rates, and financing terms in a way that matches the activities of individual buyers to the overall price activity in the market.

When considering valuation, I use rental parity as a basis. People can obtain the beneficial use of real estate through either renting or buying, and rental parity represents the point of financial indifference where it costs the same to make either choice. Since a buyer who pays less than rental parity for a house is saving money, there is a clear financial benefit obtained irrespective of fluctuations in resale price. When the cost of ownership is less than rental parity, an owner is far less likely to be forced to sell at a loss. The property can always be rented to cover costs rather than sell for a loss. Further, this ability to rent and at least break even provides the owner with flexibility to move if necessary.

Rental parity does not capture the complete picture. Some neighborhoods are very desirable, so move-up buyers take the profits from previous sales and bid up prices; therefore, the most desirable neighborhoods often carry a premium to rental parity. The inverse is also true. Some neighborhoods are not as desirable, or may contain high concentrations of condos and other first-time homebuyer products. These neighborhoods generally trade at a discount to rental parity. I have the median loan and median resale figures for most of the coverage area. I calculate the average down payment during the 1993-2002 period (the last period of stable prices) to measure the neighborhood premiums and discounts. I adjust the rental parity valuations accordingly to establish the baseline valuation for each neighborhood. When my report shows a neighborhood is overvalued or undervalued, it is not simply measuring against rental parity, it is adjusting for historical differences in down payments those markets typically experience.

Rental parity is measured using formulas described above. I compare rental parity to the down payment-adjusted historical values to measure the degree of over or undervaluation — and yes, many OC markets have become undervalued using this measure over the last year of falling prices, falling interest rates, and increasing rents.

House prices typically rise about 3.5% per year to match wage inflation. If someone pays 10% more than rental parity, they must wait 3 years for appreciation to catch up with their purchase price. Overpaying may not cost them nominal dollars, but it may cost them time, which is costly when considering inflation-adjusted dollars. Underpaying is also a significant advantage. For example, I am attracted to Las Vegas’s market because I am paying the mid-90s prices for homes. In my opinion, this creates an opportunity for rebound appreciation back to rental parity levels. Valuation is critical in identifying the best opportunities for financial gain.

The rating system ignores any market within 6% up or down from its historic norms. The concept is simple: negotiation skills and motivations of the parties involved introduces at least 6% potential variability in resale pricing, so a market within 6% up or down of rental parity is within the margin of typical variability. For each increment of 6%, the rating is either increased or decreased by one. For example, a market that is between 30% and 36% undervalued would score 5 valuation points. And markets overvalued by 30% to 36% would lose 5 valuation points.

This point system based on 6% increments makes the system very sensitive to changes in valuation, and it does reflect the real-world. People who bought at inflated prices even as early as 2003 when prices were about 12% overvalued are living in properties currently trading at what they paid nine years later. Overpaying, even by small amounts, is nearly always a bad financial decision. From early 2002 to late 2010, the market was always overvalued, and most buyers during this period will come to regret it — if they don’t already.

I want to have this great report. Sign me up!

Do you find these market reports helpful? Sign up for our monthly market newsletter.

Name	*
Email	*
Phone	*

Resale momentum rating

Most homebuyers look at short-term changes in house price and extrapolate those gains forever. Resale price change is exactly the wrong reason to buy a house. In my rating system, resale price momentum is given the least weight of the three factors, and I only look at year-over-year changes rather than the monthly noise subject to seasonal variations.

When rating the rate of price change, I have four categories:

(1) greater than 7% = 2,
(2) between 2% and 7% = 3,
(3) between 2% and -5% = 1, and
(4) less than -5% = 0.

A stable rate of appreciation is between 2% and 7%, and markets in this range get three rating points. This provides some room for minor fluctuations and recognizes that slow, sustained price increases are a normal function of healthy real estate markets.

Prices rising more than 7% per year are not sustainable. Rather than being considered a good thing, this receives two rating points rather than three. Most people see 7% per year appreciation and get excited. Most often, this means they are buying into a frenzy and overpaying.

Prices that are either rising slowly or falling slowly (between 2% and -5%) represent a weak market and receive one rating point. Some might argue that falling prices should not receive any points, but markets with gently falling prices often have more motivated sellers and better bargains on individual properties. Such markets should not be shunned just because prices are falling. Bargains can be found. However, the same is not true of markets where prices are falling more steeply.

Real estate markets typically display strong price momentum, a market falling in price by more than 5% per year is likely to continue to fall for the foreseeable future. Such markets may present good opportunities today, but the opportunities will be even better tomorrow. For that reason, these markets score no rating points.

Rental momentum rating

Next to valuation, momentum in rents is the most important determinant of good timing in a real estate market. Shevy recently closed a sale with a client employed by a major bond trading company in Orange County. When asked why he was buying now, he stated that with rising rents, locking in a stable cost of ownership with fixed-rate financing was going to provide him a return on his investment irrespective of any changes in resale price. This was not a man looking to sell for a profit on appreciation, although he did believe appreciation was due to follow in time. He recognized the importance of avoiding the rising cost of housing by locking in his housing costs. This is a valid reason to buy a home — assuming the buyer doesn’t overpay and negate the savings.

Rents are the basis of all value. Falling rents are a huge detriment to a housing market. In a market with falling rents, it makes little sense to buy and lock in a fixed cost of ownership unless the discount is very attractive. For example, if a tenant is paying $2,000 per month in rent, but he thinks he could negotiate a $200 price reduction, why would this person be motivated to lock in a $2,000 cost of ownership to buy a house? There is money to be saved by renting, and in all likelihood, resale prices of houses will fall to match the new level of rents.

When rating the year-over-year rate of rental rate change, I have five categories:

(1) greater than 7% = 3,
(2) between 2% and 7% = 4,
(3) between 2% and 0% = 2,
(4) between 0% and -2% = 1,
(4) less than -2% = 0.

Note that all rental ratings are generally higher than resale price momentum ratings. This recognizes their greater relative importance.

Similar to resale price momentum, rental rates increasing between 2% and 7% are normal and sustainable yielding a rating of four. This provides room for minor fluctuations. Rents increasing more than 7% per year are not sustainable and the rating drops to a three. Rising rents are always better than falling rents, so increases between 0% and 2% are given two ratings points. Slowly falling rents, ranging from 0% to -2%, are given one point, and rents falling more than 2% per year are given no points.

What would a typical market look like?

I write often about what a typical or healthy market would look like. Based on this rating system, such a market would score 7 out of 10 points. It would have resale prices and rents rising between 2% and 7% scoring three points and four points respectively. Since it would be trading at rental parity, it would receive no valuation points. For a market to get a boost from valuation points, it needs to be trading at a discount of more than 6% from its historic norms. To get points subtracted, it needs to be selling at valuations more than 6% higher. At the peak in Irvine, the market was 65% overvalued in August of 2006. During much of the bubble rally, the rating system gave five to seven points for increases in resale prices and rents, then routinely subtracted those points and then some for excessive valuations — which is what a good market rating system should have done during this period. In the bear rally of 2009-2010, the degree of market inflation was less, but declining rents and declining prices resulted in no points scored. The system would have largely avoided the bear rally. Only over the last six months or so with falling prices, falling interest rates and rising rents has the system begun to give markets favorable ratings.

What would be a perfect world?

So what market conditions would give ratings of eight, nine, or ten? It takes some combination of low valuations, rising rents and rising prices. Right now, three Orange County markets earn a nine: Laguna Hills, Ladera Ranch, and Tustin. Two more markets earn eights: Aliso Viejo and Placentia. With prices still falling, these markets rated so high because relative valuations are so low. In other words, it is so inexpensive relative to historic norms, the price discount negates the effect of falling prices. In my opinion, that’s how it should be. That’s how a bottom forms. Value buyers purchase and reverse the downward price momentum.

This system is not perfect. I will undoubtedly revise it over time. Further, it is not without its own drawbacks. Right now rental parity is relatively high because interest rates are so low. Will rising interest rates cause house prices to crash? I don’t know, but it is certainly a possibility. And what about the plethora of REOs on the way? Won’t that impact market pricing? Probably. That’s part of the narrative worth paying attention to.

No strictly mechanical system can capture the unusual circumstances surrounding any financial market. Right now, the math says it’s a good time to buy in many cities around Orange County, and many buyers are active. Will those buyers come to regret their decision? If they are locking in a cost of ownership less than rents, and if they have a long holding time, I don’t think they will.

I want to have this great report. Sign me up!

Do you find these market reports helpful? Sign up for our monthly market newsletter.

Get a FREE copy of The Great Housing Bubble

Irvine Renter — Mon, 26 Nov 2012 03:21:47 +0000

GDE Error: Unable to load profile settings

The Great Housing Bubble

Get the PDF eBook – FREE

Sell your home without a realtor! Let our guide show you how

Irvine Renter — Mon, 26 Nov 2012 03:20:41 +0000

You want to sell your house for the most money with the least work and least stress, don’t you?

Want to know the secret to selling your house on your own for top dollar? Get this FREE guide, Sell Your Home Without a realtor right now!

Give me 45 minutes and I’ll make sure you’re armed with insider tips, tricks, and tactics for selling your home fast for the best price possible!

Thinking about selling your house without a realtor? It can be done and the truth is, many people do it very successfully. But there’s a trick to it that most fail to grasp. What’s the secret? Just like in anything else: knowledge is power! Soldiers don’t go to combat without orders, plans, maps and guns. Entrepreneurs don’t create profitable businesses without knowledge of the market. Surgeons don’t go into the operating room without knowledge of their patient. And now – you’ll be able to sell your house armed with the knowledge of a pro. This exclusive OC Housing News Guide provides a detailed analysis of your options as a seller. Plus it gives you over one hundred tips to help sell your house fast! It’s time to cash out with…

GDE Error: Unable to load profile settings

IT’S TOTALLY FREE! SIGN UP NOW!

Who else wants to sell their own home quickly, cheaply, at the best price possible without making any of the common rookie mistakes?

If you’re like most people, your house represents your life’s work! Your life-savings! But the market is hot and you’ve decided to cash in. Good decision! Thousands are literally becoming rich off of the sell of their homes.

And you know what? A lot of them are doing it on their own. Without a realtor, and at their own pace. You may be skeptical, but remember…

Thousands who never thought they could sell their home on their own said “NO” to realtors!

So don’t worry! Selling your house all by yourself is easy if you follow the right information from the start. If you’re even THINKING about selling your house on your own. Make sure to keep reading to find out how you can start the process armed with the tips, tricks, and tactics of the pros.

Within this guide I’ll teach you how best to present your home to buyers, how to think inside their shoes, and leave the negotiating table with the best deal possible for both parties!

Armed with this insider knowledge, you’ll sell your home for maximum profit. And you can start learning this heavily guarded information in just minutes from now (my report downloads straight to your computer.) Just take a look…

…here is just SOME of the information you will find inside:

The very first thing you should do when planning to sell your home.
Who you should be listening to for advice.
The perils of overpricing your house and how to think realistically.
The secret “deal-clinchers” some homeowners forget to advertise.
What information homebuyers are likely to want to know about transportation in your area.
The secret ingredient in your cities water that may help sell your house. Does your area have it?
How to add romance to your advertisements – work’s great on newlyweds!
Why your yard matters, and what to do about it.
The list you should carry around with you when showing your house.
One simple change to a house that instantly transformed it into the cutest house.
4 reasons NOT to sell your house (if deep down you really don’t want to).
How to prepare yourself mentally for selling your house.
When to bring a professional in to inspect your house for hidden problems.
The test you should have performed on your house to impress potential buyers.
How to bring up recent repairs to prospective buyers in a positive way.
How to put yourself in the buyers shoes.
3 things the law requires you to fix.
How simply changing these two things in a room can liven up living areas.
How making repairs can actually decrease your profits.
How to find out what questions prospective buyers are likely to ask – before they do!
How to use word-of-mouth in ways more powerful than you thought possible.
The secret to using your company to help you find a buyer.
The 5 ingredients to selling a house according to Barb Schwarz, a highly successful realtor.
The secret to being successful with honesty.
6 tips to placing an ad (including how to write one).
The truth about Internet ads versus classifieds.
How the perfect ad should look.
4 simple words that can double the response to your ad or better.
Find out which day is best to run your ad on (to have the best success).
4 tips for preparing and taking phone calls from prospective buyers.
3 simple tips for preparing your home before people start showing up.
The little known trick successful sellers use to answer commonly asked questions effectively.
How to be firm in negotiations when buyers try to talk you down (by insulting your house).
How to legally transfer ownership of your house to the buyer (without making any critical mistakes).
7 items every contract should cover.
The power of the “down payment” in protecting you as the seller.
4 reasons why deals sometimes fall through.

And there’s MUCH more – guaranteed!

“Will You Make These Mistakes When Selling Your Home?”

Do you know what the homebuyer is looking for these days? A buyer who has really done his or her homework can be a headache if you’re not ready for them.

But if you do the proper research ahead of time, not only will you impress prospective buyers, you’ll also attract many more who might have overlooked your house! Inside this guide, you’ll know exactly what inquiring buyers want to know about your house.

If you’ve never even THOUGHT about how you would try to market your house, you’ll be lost without the dozens of self-marketing tips in this guide. And best of all, IT’S FREE! Get it now!

Is a short sale preferable to a foreclosure? The answer might surprise you. Get our short sale guide!

Irvine Renter — Mon, 26 Nov 2012 03:18:02 +0000

Are you stressed out about mortgage payments? Do you think your only option is a foreclosure? Are you considering ‘walking away’? Struggling with a loan modification? Is a short sale right for you?

Millions and millions of homeowners are asking themselves the same questions. No one is safe. News stories from across the country tell the tales of both celebrities and the average American who are all considering selling their homes through a short sale. Selling your home through a short sale need not be a shameful, life-ruining experience. Sometimes short selling your mortgage simply makes smart economic sense, especially for homeowners who find themselves “upside down” — that is, they owe more on their mortgage than their house is worth.

There is expected to be a massive tsunami of homeowners who are simply making the decision to sell their homes through a short sale vs. staying in a home and hoping that one day it may be worth what they paid. They shouldn’t hold their breath. It may take years, even decades, before property values rise enough to give these underwater borrowers equity again.

From the homeowner’s perspective, why should they remain in homes that are depreciating? Often times it’s possible to rent the same style home in the same area for half (or less) than their current mortgage payment. Assuming it takes years for the market to recover, the homeowner who sells their home via a short sale now will be further ahead financially than the person who ‘stuck it out’.

If you’re considering a short sale, you need this comprehensive guide to help you make the right decision for you and your family. If you decide to proceed with a short sale, Akason Realty Consultants is here to help you through this difficult process. We provide peace-of-mind during troubling times.

Get this guide today!

GDE Error: Unable to load profile settings

It’s totally FREE, and you can print this guide out to read at your leisure. Sign up below!

Market your home with Akason Realty Consulting and OC Housing News – 3
You May Not Need to Short Sale – 4
The Foreclosure Epidemic is Here… Are You Ready? – 5
How Bad Is It? – 9
Ok, I Get It…A Short Sale May Be My Best Option…Tell Me More… – 12
What is Mortgage Foreclosure? – 15
You Have Been Warned. Foreclosure Scams on the Rise! – 17
What are the Options for Homeowners in Foreclosure? – 20
So You Want To Do A Short Sale…Top 10 Short Sale Questions Answered: – 28
But, I Thought Rates Were Falling…Won’t That Help Me? – 38
Life After Short Sale…When You Want To Buy A Home Again…It’s FHA To The Rescue! – 40
Something You Should Know. The Death Of The Heloc…. Millions Of Homeowners Shut Out – 42
HAFA (Home Affordable Foreclosure Alternatives) – 44
Lender/Servicer Loss Mitigation Phone Numbers & Contact Information: – 46
What’s the difference between Short Sale vs Short Payoff? – 51
The Complete State-by-State Guidebook on the most Common Foreclosure Procedures. – 53

What you will learn

If you decide to short sale, why Akason Realty Consulting is the best choice for an agent
Why you should check comparable values before you consider selling
Why so many may be short selling their homes
How bad the credit damage really is
Who is eligible to sell short and who is not
What happens in a foreclosure
What scams are out there to take advantage of distressed borrowers
What your options are for dealing with mortgage distress
Will you need to declare bankruptcy to wipe out the debt
Top 10 short sale questions
What to put in a hardship letter
What the lender will want to see to approve the short sale
How the FHA can help
The contact information for most major banks and services
And much more!

Get this guide, and you will make the right choice for your family. Guaranteed!

Who cares about foreclosures? Get our FREE foreclosure Guide!

Irvine Renter — Mon, 26 Nov 2012 01:59:02 +0000

Who Cares About Foreclosures?

Why should you read this guide?

If you are dealing with a burdensome mortgage, and you want to know what your alternatives are, this guide provides updated information on current government programs designed to help distressed borrowers avoid foreclosure.
If you are an investor looking to profit from the foreclosure crisis, this guide provides detailed information on the foreclosure process and what you will face if you consider bidding on properties at the public auctions.
If you are simply looking to expand your understanding of our property rights system to know why we are seeing millions of foreclosures nationwide, this guide will satisfy your curiosity.

Written by someone with experience buying more than 50 properties at public auction, it’s a detailed description from someone who has been in the trenches dealing with these issues on a daily basis. This guide has something for everyone interested in this topic which has impacted so many people over the last several years.

Get this guide right now!

GDE Error: Unable to load profile settings

It’s totally FREE, and you can print this guide out to read at your leisure. Sign up below.

Who Cares About Foreclosures? – 4
Ownership Rights – 5
Who or what is an Owner? – 5
What does an Owner Own? – 6
Mortgage or Deed of Trust? – 7
Why Foreclosure Happens – 8
Negative Equity – 8
Five D’s of Foreclosure – 8
What about Subprime? – 9
A business transaction – 9
The big bluff – 11
Judicial or Non-Judicial Foreclosure – 12
Judicial Foreclosure – 12
Non-judicial Foreclosure – 13
Important Notes – 13
The step-by-step Non-Judicial Foreclosure process – 15
Black hole of payment default – 16
Visible inventory – 17
Loan modification recycling – 18
Trustee sale postponements – 18
Foreclosure Suffering Flow Chart – 19
Bad Credit is best result – 21
Borrower options – 21
Lenders Captain the Titanic – 22
Recourse sucks for borrowers – 22
California Foreclosure Rules – 24
The Purchase Money Rule – 24
The One Action Rule – 24
The Cancellation Of Debt Rule – 24
The Bankruptcy & Insolvency Exception – 25
The First Action Rule – 25
California Legal Code Pertaining to Foreclosure – 25
Why Trustee Sales? – 26
Trustee Sale Risks and Limitations – 26
Cash Only – 26
Selection – 27
No Inspection – 27
No Insurance – 27
No Remorse – 27
Unannounced Postponements and Late Cancellations – 27
High Opening Bids – 28
Competition – 28
Trustee Sale Research – 28
Preparing for Trustee Sale – 29
What happens at auction? – 30
Getting the Trustee’s Deed – 31
Taking Equitable Title (possession) – 31
Is it worth it? – 32
HUD.GOV – Avoiding Foreclosure – 33
Making Home Affordable – 33
Modify or Refinance Your Loan for Lower Payments – 33
“Underwater” Mortgages – 34
Assistance for Unemployed Homeowners – 35
Managed Exit for Borrowers – 35
FHA-Insured Mortgages – 36
CONTACT FHA – 36
Home Affordable Foreclosure Alternatives (HAFA) Program – 37
Eligibility – 37
Program Availability – 38
Steps to Apply for HAFA – 38
Home Affordable Refinance Program (HARP) – 39
Eligibility – 39
Program Availability – 39
Steps to HARP Refinance – 40
Home Affordable Modification Program – 41
Eligibility – 41
Program Availability – 42
Steps to apply for a HAMP Modification – 42
Principal Reduction Alternative (PRA) – 43
Eligibility – 43
Program Availability – 43
Second Lien Modification Program (2MP) – 44
Eligibility – 44
Program Availability – 44
For More Information – 45

What you will learn

What happens if you quit paying your mortgage
The statutory process for a foreclosure
What you can do to avoid a foreclosure
Guidelines, qualification standards, and application procedures for Home Affordable Foreclosure Alternatives (HAFA) Program
Guidelines, qualification standards, and application procedures for Home Affordable Refinance (HAFA) Program
Guidelines, qualification standards, and application procedures for Home Affordable Modification Program
Guidelines, qualification standards, and application procedures for Principal Reduction Alternative (PRA) Program
Guidelines, qualification standards, and application procedures for Second Lien Modification (2MP) Program
How you can buy a foreclosure at auction for yourself or for profit
The risks of buying a house at foreclosure
The laws pertaining to foreclosure and debt collection in California
The difference between a recourse and a non-recourse loan
The difference between judicial and non-judicial foreclosure
And so much more!

Give me an hour, and I will teach you everything you need to know about foreclosures.

Get this FREE guide today!

Free Money! Get up to a 1.5% cash rebate on new construction. Contact us today!

Irvine Renter — Sun, 25 Nov 2012 23:08:18 +0000

We are offering buyers a refund of anything over 1.5% back on new construction from our fee that is paid to us by the builder. From the beginning our goal has to been to provide value to our clients by recommending they rent versus buy during the bubble, discouraging investors from purchasing low cap-rate property, warning about short-term bubbles due to tax incentives, warning buyers of condos regarding HOA issues etc. We have found a new need in the market for those considering new construction.

Most buyers are at a disadvantage on new construction and are often not properly represented or educated in these types of purchases. Many buyers do not know that if they want representation they need to bring their representation the first time that they visit new construction. As a result buyers walk in and are given information from the builders reps only, make a decision, and never have access or are educated with information that may lead to a different decision — perhaps a better decision for the family.

In addition, many of the builders give their reps extensive training in high pressure sales techniques that that we find objectionable. Because many buyers do not have proper representation, many buyers do not realize that the new construction property they buy may not look much like the model without spending thousands on upgrades, the costs associated with landscaping, or the effect that Mello-Roos on their cost of ownership.

Furthermore, builders, particularly in Irvine, have done an excellent job of creating a false sense of urgency amongst buyers by not over building, with excellent multifaceted marketing approaches, the use of waiting lists, and other techniques. Ultimately, we have an extensive initial consultation with buyers. We have come to realize that many buyers that are interested in new construction don’t contact us. They walk-in to model homes without realizing they can have representation on their side. Furthermore, for those buyers that we are working with that convinced that new construction is the right choice for them; we’ve found that assisting buyers with new home transactions is less work than re-sales thus enabling use to offer the rebate.

We find that the builders are not highly negotiable because the builders have done a good job of keeping demand even or slightly higher than supply in Irvine for the most part so the fee refund that we can provide along with some upgrade incentives that are often offered are the limit the discount that they can achieve, without us they may get a few upgrades but little beyond that, and no rebates. Beyond our hefty rebate, we feel that there is value in the information that we can provide. We have already prepared new construction fundamental valuation reports for clients that compare new construction to nearby resales on a cost of ownership basis. We help buyers compare what they can buy new versus resales on a cost of ownership basis, provide advice on the loan process by helping buyers compare lender’s rates and fees, assist buyers negotiate for upgrades, and finally explain to buyers that occasionally deals fall out and that their most leverage will happen on standing inventory, which is relatively rare in Irvine. We believe many buyers make a better decisions with representation.

If readers are interested in new construction and they contact us before they have registered with the builder we will accompany them to the registration and refund them anything over 1.5% offered by the builder, pending we have not been working with them extensively to find a resale. We believe that many buyers may choose resale, however, many will buy new, but they will make a more educated choice and by working with us will save money that would otherwise go to the builder.

Don’t overpay for the wrong house! Know the neighborhood comps with this report!

Irvine Renter — Sun, 25 Nov 2012 20:42:13 +0000

Are you ready to make an offer, but you are worried you will either (1) underbid and miss the property or (2) overbid and pay too much? Don’t make a mistake and miss your dream home, or worse yet, overpay for it! Get the advice of a seasoned professional. Contact us at info@ochousingnews.com today!

Are you thinking about selling, but you are worried you will either (1) overprice and fail to sell or (2) underprice and leave money at the negotiating table? We are the experts in real estate valuation. Work with us to set the right prices to sell your property quickly for the largest amount possible. Let us show you what your property is worth today!

An OC Housing News Comparative Market Analysis will calm your worries and give you peace-of-mind.

See for yourself right now!

Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at info@ochousingnews.com, and we will prepare the reports for you.

GDE Error: Unable to load profile settings

Ignorance is Pain

George Orwell in 1984 wrote, “Ignorance is Strength” to describe how power is maintained by the few through the ignorance of the many. Those who are responsible for helping people buy and sell homes have preyed on the ignorance of buyers for generations to maintain their strength. They see little reason to change.

Thomas Gray in “Ode on a Distant Prospect of Eton College” wrote the line, “Ignorance is Bliss” to illustrate that ignorance to a problem creates happiness—while the ignorance lasts. This bliss may be welcome at times when the problem is intractable, but ignorance that prevents people from taking appropriate action does not lead to bliss, it leads to pain.

Ignorance is Pain. Ignorance to the housing market can lead to foreclosure and bankruptcy. There is nothing noble or romantic about ignorance to the value of real estate. I have no need to exaggerate the importance of getting this decision right. Don’t be ignorant.

What does this home really cost to own each month? Find out with our exclusive cost of ownership report!

Irvine Renter — Sun, 25 Nov 2012 20:41:11 +0000

Are you ready to make an offer, but you are worried the cost of ownership is really more than you can afford? Don’t make a mistake that might cost you the family home, your life savings, and your good credit! Get the advice of a seasoned professional. Contact us at info@ochousingnews.com today!

We produce detailed reports showing the cost of ownership based on the most likely transaction price and current financing terms. You will know how much you will spend each month in out-of-pocket expenditures and the true monthly cost of ownership factoring in tax deductions, loan amortization, and opportunity costs on your down payment. In addition, we show you how this cost compares to a rental of equal quality to make sure buying is the right decision for your situation.

An OC Housing News Cost of Ownership Analysis will calm your worries and give you peace-of-mind.

See for yourself right now!

GDE Error: Unable to load profile settings

Don’t become a foreclosure statistic

Everyone wants to own their dream house, but if you underestimate the true cost of that dream house, it may become a nightmare instead. Imagine telling your daughter she can’t have dance lessons because you spend too much on the mortgage. Or worse yet, imagine telling the whole family you must move out of your dream house because you can’t make the payments and the bank is forcing you to leave. It’s already happened to millions of borrowers, and they all had one thing in common: they bought properties they couldn’t afford, largely because they didn’t know how much it was really going to cost.

Don’t you owe it to your family to accurately determine the cost of ownership to make sure you can keep the house?

North OC Housing News

Get our exclusive home finance guide today!

Are you considering buying a house, but you don’t understand the lending process or what documents are required?

Table of Contents

What you will learn

Get started on your journey to home ownership buy getting this guide to home financing. It’s an essential first step.

To rent or to own: that is the question. Our decision guide will help you find the answer

To rent or to own: that is the question.

Get this guide today!

Table of Contents

What you will learn:

Get this guide, and you will make the right choice for your family. Guaranteed!

OC Housing News FREE Guides!

Wouldn’t you be embarrassed to overpay by $100,000? Our report saves you money.

OC Housing News monthly market report and newsletter

Too much information

The importance of rental parity

How rental parity is calculated

Conventional financing

This report has value. Sign me up!

Year-over-year percentage change

Per-Square-Foot Basis

Sales prices on a per-square-foot basis

Rents on a per-square-foot basis

I want to have this great report. Sign me up!

Rating scale of 1 to 10

System Criteria

Valuation rating

I want to have this great report. Sign me up!

Resale momentum rating

Rental momentum rating

What would a typical market look like?

What would be a perfect world?

I want to have this great report. Sign me up!

Get a FREE copy of The Great Housing Bubble

The Great Housing Bubble

Get the PDF eBook – FREE

Sell your home without a realtor! Let our guide show you how

You want to sell your house for the most money with the least work and least stress, don’t you?

Give me 45 minutes and I’ll make sure you’re armed with insider tips, tricks, and tactics for selling your home fast for the best price possible!

IT’S TOTALLY FREE! SIGN UP NOW!

Who else wants to sell their own home quickly, cheaply, at the best price possible without making any of the common rookie mistakes?

Thousands who never thought they could sell their home on their own said “NO” to realtors!

…here is just SOME of the information you will find inside:

“Will You Make These Mistakes When Selling Your Home?”

Is a short sale preferable to a foreclosure? The answer might surprise you. Get our short sale guide!

Are you stressed out about mortgage payments? Do you think your only option is a foreclosure? Are you considering ‘walking away’? Struggling with a loan modification? Is a short sale right for you?

Get this guide today!

Table of Contents

What you will learn

Get this guide, and you will make the right choice for your family. Guaranteed!

Who cares about foreclosures? Get our FREE foreclosure Guide!

Who Cares About Foreclosures?

Get this guide right now!

Table of Contents

What you will learn

Give me an hour, and I will teach you everything you need to know about foreclosures.

Free Money! Get up to a 1.5% cash rebate on new construction. Contact us today!

Don’t overpay for the wrong house! Know the neighborhood comps with this report!

Ignorance is Pain

What does this home really cost to own each month? Find out with our exclusive cost of ownership report!

Don’t become a foreclosure statistic