South Bay Real Estate Resource

Last Week In The News

2009-03-09T06:26:00.000-07:00

On Monday, March 2, the Commerce Department reported that consumer spending rose more than expected in January after declining for a record six consecutive months. Consumer spending rose 0.6%, better than the 0.4% gain that economists expected. Consumer spending fell 1% in December 2008, after a 0.8% decline in November 2008.

Also on Monday, the Commerce Department reported total construction spending fell 3.3% in January, more than the 1.5% decline economists had expected. It was the fourth consecutive monthly decrease. Construction spending fell 1.4% in December.

On Tuesday, the National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 7.7% to 80.4 in January.

The Institute for Supply Management reported the monthly index of manufacturing activity rose in February to 35.8 from January’s 35.6. Economists had expected a reading of 33.8. Figures below 50 indicate contraction, making February the 13th straight monthly decline in manufacturing.

On Thursday, the Labor Department said that productivity fell at an annual rate of 0.4% in the fourth quarter of 2008. That’s down from the 1.3% increase in the third quarter and 3.6% growth rate in the second quarter.

The Commerce Department reported factory orders declined by 1.9% in January. It was a record sixth straight drop but much less steep than the revised upward 4.9% in December and the revised upward 6.5% in November.

The personal savings rate rose to 5% in January, a 14-year high. But that was bad news for U.S. auto makers. At Ford sales fell 48.2% in February. Chrysler saw a 44% drop in sales in the month of February. And GM reported vehicle sales decreased 52.9% in February.
Upcoming on the economic calendar are reports on wholesale trade on March 10 and retail sales on March 12.

Click here to visit my website and apply on line: www.dstolz.myprospectmortgage.com

What is happening to Fannie and Freddie?

2008-09-11T08:22:00.000-07:00

Major Points
Fannie and Freddie have been placed in conservatorship. (Federal government has taken 79.9 percent of common stock and all dividends in return for buying $1 billion of preferred shares.)

Treasury Department says both are open for business with no major changes in operations.

Top Fannie/Freddie executives have been replaced.

Fannie/Freddie can grow their guaranteed mortgage book with no limits and grow their retained portfolios with limits. Ultimately, the government plans to shrink their portfolios (10% per year starting in 2010).

The federal government will provide capital to keep Fannie/Freddie’s net worth positive (up to $100 billion). In return, the Treasury will receive new senior preferred stock and warrants on the GSEs’ common stock.

The federal government will begin buying Fannie/Freddie mortgage-backed securities (MBS) on the open market.

Treasury Department will create a Secured Lending Credit Facility, a liquidity backstop for GSEs.

Initial Reactions

Rates drop half a point!

World markets respond positively to news: stocks up on Monday, September 8, 2008.

Federal Reserve Chairman Ben Bernanke: “These necessary steps will help to strengthen the U.S. housing market and promote stability in our financial markets.”

Investor Warren Buffett: “Secretary Paulson has made exactly the right decision for the country. He is minimizing the problem of moral hazard and maximizing the benefits for the housing market and for the smooth functioning of financial markets.”

Anticipated Results

Increased confidence in financial markets.

Rates to possibly stabilize, due to reassurance given by government intervention.
Loan term changes possible (FICO, LTV).

More loan workouts possible due to increased government pressure on lenders to create solutions that prevent foreclosures.

If you have any questions about the Fannie Mae and Freddie Mac takeover, please call or email me at Darryl.Stolz@prospectmtg.com!

Click here to visit my website and apply online!

Contributor: Darryl Stolz - Prospect Mortgage

You Have A Choice

2008-08-19T10:05:00.000-07:00

Do you have an escrow in process with a bank owned property that your buyers did not have the choice of the title and escrow company?

I have conversations everyday with agents that are in that position. Problems such as lack of communication, delays in title reports, demands not ordered for homeowners associations and overall lack of service are common issues. The volume these offices are dealing with is overwhelming and it shows. I have even had a few agents tell me the escrow officers are sending the signing package directly to them to coordinate the signing. I'm sure you as an agent want to avoid these problems when representing a buyer.

Did you know your buyer has the choice no matter who pays for the title and escrow fees?

Here's the exact verbiage from the Department of Insurance:

"The choice of which title insurer to use belongs to you. Federal law, the Real Estate Settlement Procedures Act (RESPA) of 1974 (Public Law 93-533), prohibits the seller from requiring you to purchase title insurance from any particular company."

The next time you write an offer on a bank owned property be assertive with your right to select the title and escrow company. In the best interest of your buyers choose Old Republic Title, Glendale where you will receive top service, competitive rates and a competent closing.

I understand it is difficult to change the industry practices so if you do have an escrow on a bank owned property here's a few tips:

* Make sure your buyer is receiving the enhanced CLTA title policy for extra coverage.

* Check the demands on utilities and homeowners associations to insure proper perorations.

* Have Old Republic Title, Glendale act as the signing service to insure your buyers understand what they are signing. Mobile notaries can only notarize the documents not answer the question your buyers may have.

California Home Sale Price Medians By City For June 2008

2008-07-29T13:04:00.000-07:00

Here is the latest and greatest on home sale activity for the entire state of California including comparisons from June of 2007. This is a great snapshot of how things are holding price wise and the amount of inventory that's actually moving.

Click Here To Get The Report

It Pays To Use A Reputable National Title Company

2008-07-18T11:52:00.000-07:00

New Crew Acquires Historic Queen Mary Cruise Ship

The Los Angeles County office of Old Republic Title Company closed the $43,000,000 sale of the historic Queen Mary cruise ship to a real estate development group known as Save the Queen, LLC. The Queen Mary is moored in Southern California's famous Long Beach Harbor and is owned by the City of Long Beach, along with certain contiguous properties totaling approximately 75 acres. The Queen Mary is subject to a long-term leasehold and had been under the jurisdiction of the United States Bankruptcy Court, pursuant to a Chapter 11 proceeding for more than a year. By virtue of the bankruptcy court's competitive bidding process and its court order, Save the Queen, LLC became the successful bidder. Thus, the course was set for The Queen Mary to "sail away" with its new owners when the escrow was closed by the very capable commercial team at Old Republic.

The nature of such a monumental transaction involved a complex set of circumstances, sophisticated financing and unexpected delays along the way. Not only did Old Republic perform the escrow and traditional title services, it also issued UCC policies as part of the closing. The recipe for success: a cooperative professional team effort by all involved, positive attitudes in the face of seemingly impossible demands, and several 36 hour days. The positive "we can do this" environment was the essential hallmark of this multi-tiered transaction closing within the strict mandates of the Bankruptcy Court.

Save the Queen, LLC will give The Queen Mary a $6 million face lift to bring her back to her former glory and begin a new chapter to the Los Angeles Old Republic Commercial Team for a job well done!

Housing Market Key Indicator Alert

2008-07-17T07:47:00.000-07:00

www.brokeragentpro.com

Fannie & Freddie on Rocks
Fears of a meltdown in the financial system have sent shockwaves across the markets in the past several days. Financials are still reeling from the effects of the meltdown in the mortgage markets. These issues have now brought into question the stability of the two large government-sponsored enterprises, Fannie Mae and Freddie Mac, which back or own nearly half of all outstanding national residential mortgage debt. The collapse of the two would be near catastrophic but is also highly unlikely. The real issue is if they have enough capital to ride out the current storm or will the Federal Reserve need to intervene in order to keep the two afloat.

While the Fed played a key role in the JPM acquisition of Bear Stearns, the question is whether they should OR can continue to bail out these faltering financial institutions. In the case of Fannie and Freddie, it’s reasonable to assume the federal government will not allow them to fail, but the ramifications in terms of regulation and fiscal burden for taxpayers could be significant.

Pending existing home sales figures released by the National Association of Realtors continued to show weaker conditions in the housing market. With the current distress in the financial markets, heightened inflationary pressures and the weakening economy, we can expect to see more downward pressure on housing in the near-term. After plunging over $9/barrel over a two-day period earlier in the week, crude prices rebounded on Friday to trade at new all-time intraday highs of over $147/barrel due to geopolitical concerns in Brazil and Iran. The markets seemed poised for a rough second half of the year as rising food and energy costs, stumbling housing and financial markets, and geopolitical concerns surround the upcoming Presidential election.

The Economy
The economy continued to shed jobs in June as non-farm payrolls have no declined in all six months so far this year. There was a seasonally-adjusted 62,000 jobs lost in June while payrolls have dropped by 438,000 since the beginning of the year. Non-seasonally adjusted total non-farm employment in June was 167,000 lower than in June 2007. Currently, non-seasonally adjusted total non-farm employment shows a figure of 138,624,000, a loss of 0.12% from over June 2007. The unemployment rate remained unchanged from the previous month at 5.5%.

Final estimates for first quarter gross domestic product were revised slightly higher to 1.0% from the preliminary figure of 0.9%.

First quarter growth was revised higher with each estimate during the first three months of the year. Many had expected the economy to contract during the first quarter due to the credit crunch and the continued troubles in the financial and housing markets. Slight positive revisions to both consumer and government spending along with increased exports helped to improve economic expansion during the quarter.

Housing Market
National average mortgage rates increased slightly to 6.37% in the latest Primary Mortgage Market Survey released weekly by Freddie Mac on July 10th. Rates have now posted weekly increases in six out of the past seven weeks. In the week ending July 4th, the MBA’s seasonally-adjusted Purchase Index increased to 365.8 from 342.8 in the previous week. This is the second straight week that purchase applications have increased while reaching their highest levels in a month. The latest figure reflects a 6.71 percent increase from last week but a 19.41 percent drop from the same period last year.

New and existing home sales moved in opposite directions again in May but it was the existing home market that showed improvement while new home sales faltered. New home sales declined in May after posting its first monthly gain since October 2007 last month. Sales fell 2.5% in May to a seasonally-adjusted 512,000 homes, down from a revised April figure of 525,000. At the current sales pace, there are 10.9 months of new homes supply on the market. New home inventory declined to 450,000 which is the lowest it has been since May 2005. In May, median new home prices fell back to their lowest levels since March to $231,000 after posting a strong rebound in the previous month. Lower prices helped to increase the new home affordability ratio to 48.8% in May.

Annualized sales of total existing homes in May increased for the first time since February, rising 2.0% from April levels to 4,990,000 units. Sales of existing homes are still down 15.9% from the 5.93 million units in May 2007. Median existing home prices in May increased for the third straight month to $208,600 from a revised $201,200 in April. This is the highest median existing home prices have been since November 2007. The number of existing homes for sale declined 1.4% to 4.485 million units in May. At the current sales pace, there are 10.8 months of existing homes supply on the market. Existing home affordability declined for the third straight month due to increases in both mortgage rates and existing home prices in May.

Credit 101

2008-07-17T07:09:00.001-07:00

The subject of credit and what is included on a consumer’s credit report can be a source of much debate, confusion and sometimes frustration. Outlined below are some of the more important facts relating to credit to gain better insight into a person’s credit report and history.

What is included in a credit report?

First and foremost the credit report will contain specific account information that is associated with the consumer, meaning an account that the individual has opened, cosigned, authorized or filed jointly with a spouse or relative. This information, commonly know as trade-lines, includes the date opened, original account balance, current balance, credit limit, monthly payment, and payment history. Additional things that may be included within a trade-line are account numbers (often times incomplete or scrambled for security) and contact information for the creditors.
In addition to creditor trade-lines, a report can include:

• Public records – Tax liens (state or county court records), judgments,
federal district bankruptcies

• Identification information – Current name, Social Security number, full
name, address, and possibly date of birth and employers past and present.

In addition, the report will show variations of name, social and address
based upon individual bureau’s creditor reporting and inquiries

• Inquiries – Individuals or companies that have “inquired” into an
individual’s credit history and obtained a copy of a credit report

• Statements -- Text that describes disputed information or possible
reported fraud. Statements are listed following a no-resolution dispute
between a borrower and creditor

• Additional Information – Many reports will also include fraud
statements from fraud detection products and/or OFAC (Office of Foreign
Assets Control) which searches a national terrorist data base
Active and “good standing” credit may last on a consumer’s credit report for an indefinite amount of time while the majority of derogatory or negative information remains for seven years. Following is a basic guideline for how long a trade-line will remain on the credit report:

• Late payment accounts/delinquencies – 7 years from the initial date of
missed payment

• Charge-Offs – 7 years from the initial date of missed payment regardless
of whether or not the account has since been paid. “Paid charge-off” will
be reflected if paid

• Collections – 7 years from the initial date of missed payment regardless of
whether or not the account has since been paid. “Paid collection” will be
reflected if paid

• Closed accounts – Accounts in good standing will remain for 10 years
while derogatory accounts will be removed after 7 years from the date of
closure. This applies to accounts that were closed by either the consumer
or creditor

• Bankruptcies – Chapter 13 remains for 7 years from the filing date.
Chapters 7, 11, and 12 remain for 10 years from the filing date. Accounts
included in bankruptcy will remain for 7 years from the date reported in
bankruptcy

• Tax liens – 15 years from the date of filing. If lien is paid it will remain
for 7 years from the date of payment

• Judgments – 7 years from date of filing regardless of payment status

• Child support judgments – 7 years from date of filing regardless of
payment status

• Lost credit card – 2 years from date reported lost as long as there are no
delinquencies. In the case of delinquent accounts, 7 years from the date of
delinquency

• Inquiries – The majority of inquiries will remain and be factored into the
overall credit history for 2 years, even though many credit reporting
companies will only display 3-6 months worth of inquiries

An individual is responsible for any account opened in his or her name, accounts that
have been cosigned by the individual, any joint accounts, and potentially any account that has been guaranteed by the individual, even if it is a business account. In the case of a divorce, a divorce decree does not impact any account that was contracted during the marriage. BOTH individuals are responsible for the account even if one person has been deemed responsible by decree. Only the creditor can change the status of an account. It is recommended that following a divorce, creditors be contacted immediately to change account status.

FOR THE REST OF THE ARTICLE IN PDF FORMAT CLICK HERE

9 Guidelines on Setting the Price and Attracting Buyers

2008-07-07T13:31:00.000-07:00

What is your home worth? Here are 9 guidelines to go by when setting your price:

Don't base your price on what your neighbor is selling their home for or what you originally paid for your home.
Make sure to examine all the home prices in your neighborhood that are currently for sale, along with all sales comps that have sold in the past six months.
When interviewing agents make sure you don't pick an agent just because they said they will list it at a higher price than the others.
If you're going to remodel don't go overboard. These costs are rarely recaptured. Keep it simple and cosmetic.
Make sure your home is in better shape than it's competition and shows better.
Don't get caught up in emotional memories or attachments when setting a price.
Make sure your agent keeps an eye on the competition and rechecks the competitions prices every few weeks or sooner.
Make sure you aren't being stubborn if your home isn't receiving any offers. If weeks go by without any offers than the price of the home isn't in line with it's perceived value and it's time to talk about a price reduction.
In this market it's necessary to be more patient. Buyers are having a tougher time now trying to extract their money due to the tougher standards that lenders have now.

South Bay Real Estate: Resale Trend Report For May 2008

2008-06-27T10:26:00.000-07:00

May Grey is finally behind us and we're only a few days away from ditching June Gloom.

May's Resale Trend Report reflects pretty much what everyone expected...property price declines in the Greater South Bay from May of 2007 to May of 2008.

Only South Redondo and Rancho Palos Verdes showed increases of 5.30% and 3.80% in sale prices respectively.

The decreases ranged anywhere from -2.90% in Manhattan Beach to -27.40% San Pedro.

We'll be watching closely to see when things begin to level out. With the influx of distressed properties on the market and the number of Bank Owned Real Estate, decline in prices might continue throughout the year. When these inventories begin to diminish is when we should begin to see some leveling out.

The good news is we're seeing a lot of investors who've been sitting on the side lines begin to pull some triggers on buying up properties. Many banks are finding more creative ways to lend money and it's begun to stimulate an increase in opened escrows. We live in a resilient area and should bounce back quicker than most parts of the nation.

I'm curious to see if South Redondo and Rancho Palos Verdes will hold strong in June. Stay tuned and we'll let you know next month!

PDF Version Here

Home Buyers and Sellers Guide

2008-05-31T05:44:00.000-07:00

I ran across this Home Buyers Guide the other day when I was in our corporate offices at Old Republic Title in Glendale. I've worked for more Title companies than I care to mention and I haven't seen a more comprehensive Buyers Guide than this one. I put it in PDF format for those of you who are looking to buy or sell property so you can read it at your leisure and educate yourself on the buying process before talking to a Real Estate Agent. Let me know if you need help finding a great agent in the South Bay area. We're always here to help!

Home Buyers and Sellers Guide

South Bay Real Estate.....What A Ride!

2008-04-15T07:14:00.000-07:00

Ah...yes! This video was sent to me by my father and it completely reminded me of how I've sometimes felt the past seven months. I truly believe we've hit very close to bottom here in Southern California with regards to Real Estate. When you can reach up and touch bottom you know there's only one way to go and that's up.

Sellers should keep in mind there's a lot of smart money waiting on the sidelines ready to step into Real Estate right now. Summer months are ahead and for buyers the interest rates are still at 40 year lows and there are great buys to be had.

Real Estate Professionals should stay positive because there are really no more reasons to be negative. If your listing agent hasn't recreated their business and adapted to the market dump them NOW! Check back here frequently for the latest tips and if you need some help give us a call at (866) 469-8485!

This is a six minute video and by the end your stomach will be close to flying out of your mouth and your nerves will be a bit tight. What a ride we've experienced and will continue to experience through 2008. Enjoy life for what it is and remember you're exactly where you're suppose to be right here and now. Learn, grow and achieve!

Happy Hunting to all.

Good Times At The Redondo Beach Marina

2008-04-05T07:14:00.000-07:00

Growing up here in the South Bay has been a blast. There are so many great people that live here and a whole host of activities to do and places to visit. One of my favorite places to have a little fun at is the Redondo Beach Marina. On the weekend the fish market is busting with great food and conversation. During the spring and summer months it's always a blast to take the bikes down to one of the local restaurants or pubs to have a bite to east and swig of your favorite drink. Afterwards we'll roll on over to Naja's on the lower level of the pier and listen to the Land Sharks or another great local band. By the way...if you're a beer drinking they have 777 types of beer at Naja's.

If you are looking for a great place to kick back and relax while watching the sunset hit Old Tony's on the pier upstairs in the crow's nest. You'll get a 360 degree view of the Pacific and Marina area. Today's Saturday...so maybe after checking out some local inventory here in the South Bay I'll see down and one of our favorite haunts. Have a wonderful weekend!

Interest Rate Projections

2008-03-21T06:54:00.000-07:00

Here's a snapshot of this week's activity and where interest rates are currently at:

Why Fed Rate Cuts Do Not Equal Lower Mortgage Rates

2008-03-18T16:10:00.000-07:00

Team Fed slashed the its key lending rate(Fed Funds Rate).75% today. Bringing the prime rate down to 5.25% the lowest it has been since December of 2004. You might have been on the fence waiting for this well publicised rate cut before you pulled the trigger on refinancing, only to find out tonight when call your Loan Officer that mortgage rates actually got worse today. Hopefully that Loan Officer can explain to you why this keeps happening time and time again after the Fed cuts rates. If your loan officer does not have the right answer you may want to look into finding a Mortgage Specialist who understands what moves the mortgage rate markets and how preparation can save you thousands of dollars. Click play on "Fed Rate Cuts Do Not Equal Lower Mortgage Rates" in the side bar to the left or below this text.

Top 10 Foreclosure Avoidance Tips

2008-03-11T11:12:00.000-07:00

Foreclosures and Short Sales seem to be the buzz words for 2008. Today's segment covers 10 Foreclosure Tips for homeowners and how to possibly avoid one. I can't stress to anyone thinking about this to act immediately. Think of Cancer...the longer you wait the worse it's going to get. If you catch is quick enough you might be able to save yourself from a painful process. Please feel free to contact us if you think you might need help in finding the right professional to help you out. We are happy to refer you to one of the many respectable professionals we know.

Appraisal: For What It's Worth

2008-03-05T09:16:00.000-08:00

If you've just purchased your first home, you probably have a pile of paperwork on your house. Within it you might see a large packet entitled "Appraisal." What in the world is that? An appraisal is an estimate of your new home's value. Conducted by an appraiser, it ensures that the lender is not loaning more than what the home is worth and that you, the buyer, are not paying more than what you should.

When conducting an appraisal, the appraiser will inspect the size, condition, quality and amenities of a home and compare them to those of other homes in the area. They will then create a report of those features and determine the home's value. The value will generally reflect what other properties in the neighborhood are selling for. However, there may be some variations. Homes with four bedrooms, for example, will generally be valued higher than homes with three bedrooms, while homes that have recently been updated will generally be valued higher than those that haven't.

Sometimes an appraiser may determine the value of the house to be less than the asking price. If this occurs, the seller will either have to lower the price or the buyer will have to increase their down payment to make up the difference. Of course, as with anything else, mistakes can be made, so if the appraisal comes in too low, double-check that the appraiser did not make any miscalculations.

Remember, an appraisal is an estimate of value. It is not, and should never be, a replacement for a whole-house inspection. If you are purchasing a home, you will be required by the lender to have an appraisal and you should arrange to have a whole-house inspection. The inspection may uncover problems that the appraiser did not notice.

An appraisal generally costs between $200 and $500, but the price is worth it just for the protection it provides for both the lender and the buyer. For just a few hundred dollars, you can save thousands of dollars later.

Top New Tax Breaks You Should Know About (TNT Issue 1)

2008-02-21T12:08:00.000-08:00

If you're starting to prepare your 2007 taxes then you'll need to make sure that you look at every possible tax break available to you. The more money you save for yourself and don't give to the government (legally of course) the better. Today I'm going to go over a few new tax breaks for 2007 and a couple that aren't used very often. Take a few minutes to get an overall view of these three tax tips and make sure you haven't overlooked anything.

Private Mortgage Insurance Deduction

If you bought a new residence and paid under 20% of its value as a down payment, your lender probably required that you purchase PMI or Private Mortgage Insurance. If you acquired a loan in 2007 and were required to purchase PMI you could be eligible for a tax deduction based on your PMI payments. Of course there are a few things you'll need to check:

- PMI is insurance taken out on the balance of your mortgage and doesn't cover hazards for your house. Make sure you don't mistake PMI as normal home insurance, they are two different things.

- Typically the PMI deduction is only available to those with incomes less than $100,000 and $50,000 as married and filing separately. This break is only good for your primary residence, so don't get excited and think yippee...I get a break on my vacation home in Big Bear.

- If PMI was taken out on a home equity line, then the deduction is only good for the portion of the loan you're using to improve your home.

Deduction On The Home Office

If you are a small business owner and run your business out of a spare bedroom in your home that's used exclusively for business you might be eligible for a home office deduction. With a home office deduction you can write off that portion of your home used for business purposes AND the percentage of your mortgage payments and utility bills that represent that portion of your home.

You'll need to determine the percentage of the square footage used for business when calculating the eligible amount. For example, if your home is 3000 square feet and your home office is 300 square feet you can write 10% of your mortgage payment, utilities, etc, as a business expense.

If your home office is eligible for this deduction you can reduce your tax bill drastically. Remember to only use space actually used for business purposes.

Debt Forgiveness On Your Home Mortgage

Over the past six months the home mortgage crisis has been in the news almost everyday. Foreclosures and loan defaults are increasing at amazing rates. Because of this the banks are more willing to work with financially distressed home owners that have borrowed money by restructuring the terms of their existing loan or writing off a portion of the principal. That being said, keep in mind that the amount forgiven by the bank might be an amount that you're liable to pay taxes on.

There's some good news though! The Mortgage Debt Forgiveness Act of 2007 is a law for homeowners that received debt forgiveness on their primary residence. Under this new law homeowners won't owe taxes on the forgiven amount if they meet certain requirements:

- The amount forgiven does not exceed $2,000,000 or $1,000,000 if married and filing separately.

- The amount forgiven was discharged in 2007.

You might save an enormous amount of money if you qualify for the Debt Forgiveness Act of 2007, so make sure you check it out if you think you might fall into this category.

In Closing

Make sure you check with your tax professional before filing and do your best to keep your tax bill as low as possible by investigating deductions like the ones we mentioned today.

Clear Cut Aggressive Fed Action

2008-01-30T14:53:00.000-08:00

The FMOC added to last week's surprise 75 basis point cut with an extra 50 basis point cut decision in their normally scheduled meeting today. The target for the federal funds rate currently sits at 3.00%. The Fed also slashed the discount rate by a half-point to 3.50%. They also eased the monetary policy by 1 1/4 points in just over a week to keep a recession at bay or for sure shorten it. The policy statement resembled last week's 75 basis point rate cut. In it they noted market stress and tighter credit conditions. They also showed and increasing slowdown in the housing market which could be affecting softer labor market conditions. They will continue to watch inflation but expect it to be moderate this year. The policy makers hope that the actions taken will help generate growth over time, but will remain watchful should action be needed again.

Federal Open Market Committee Policy Statement

For immediate release

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 3 percent.

Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.

The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

Today’s policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity. However, downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh. Voting against was Richard W. Fisher, who preferred no change in the target for the federal funds rate at this meeting.

In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 3-1/2 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Atlanta, Chicago, St. Louis, Kansas City, and San Francisco.

Tips To Selling Property Quickly – With Or Without An Agent

2008-01-24T14:45:00.000-08:00

by Lou Castillo

Amenities are equally important. The type of flooring, countertops, lighting fixtures, etc that you are offering are all considered amenities. You want to look and see how what you are offering compare to other houses in your area. In fact, you should have done this before you purchased the property to make sure there was enough money allocated in your budget to cover these amenities.

Everyone wants to see a brand new listing so you need to put your best foot forward on day 1. I have seen so many times where a rehabber lists a house and the agents take potential buyers to the house, but the house isn’t quite finished. There are a few odds and ends that still have to be taken care of. Agents rush to new listings the first two weeks to see if they want to bring any of their buyers to that house.

When they come out there and they see a dirty house or one that is not complete, they are not overly impressed by it and are less likely to bring buyers back. You are losing that critical time period by not having the house done. Always have your best foot forward day one. Whether you are listing with an agent or selling yourself, make sure that each and every person that comes by is going to see a beautiful home. Here are some things you can do to ensure a quick sale:

1. Curb appeal. This is one of the most important aspects of the house. The exterior is the first thing people see. If potential buyers drive up to your house and do not like the outside, chances are they will not even get out of their car and see the inside. The inside of the house could be gorgeous but they will never see it.

2. Staging. Staging is those added touches that give a house that lived in look. I am not talking about doing a model home where you bring in furniture and window treatments. What I am talking about is little odds and ends things that give it that home feeling. For instance, in the kitchen adding a rug on the floor. Putting hand towels that are full of color. Putting a cookbook on the counter. Even opening up some spices. By opening up the spices what you are also creating a smell in the air. You want to start changing their senses from smelling paints to smelling home type things. Another trick is to get fresh ground coffee beans and open them up in a bowl. They are pretty to look at but also they give off that aroma that will start filling the house. In your bathrooms, you can do flowers and soaps and towels and curtains around your showers. Do all these things that give it that nice lived in look. Staging will sell your house. I don’t believe that those white on white and those absolutely neutral colors like off white and ivory are a good choice. Yes, anybody can come in and match their stuff to it, but the first thing you are going to hear from all the buyers is that they have to paint the house. That means that they are not falling in love. If you want you buyers to fall in love with your house what you have to do is give them color, contemporary colors not old colors from back in the 70s. You want to give them contemporary colors that give the house a designer feel. When you go to see a model home they are never painted white. They have a lot of color in the house because that is what makes it feel like a home. You can’t do a model home because you only have that one house. So make that one look great.

3. Cleanliness. You need to go beyond having the house cleaned up. It needs to shine. The windows should sparkle. There shouldn’t be a speck of dust on the fixtures or counters. The floors should be spotless. Everything should look great.

4. Sun shine. Open the blinds and remove the curtains. Clean the windows. Take out the screens and store them. Let plenty of light come in to create a bright and cheery environment. You do not want the house to appear dark and dismal.

5. Light bulbs. Make sure that all of your light fixtures and bulbs are working. Buyers should be able to turn lights on when they come in the house.

6. Temperature. Keep the house at a comfortable temperature where people will stay in it and have time to walk around and fall in love. I have walked into homes where it is either so hot in the summer time or so cold in the winter time that the only thing you can focus on is how soon can you leave. That is not what you want your buyers thinking about.

7. Access. If you are not going to list the house and have a realtor lock box, then you need to figure out how to have easy access. You need to have an easy way for buyers to get into the house when they are there looking at it. If they have to call you and make an appointment to come back two days later, chances are slim you will ever see those buyers again.

8. Information. Be sure to have flyers with information about the house right there on site. Don’t have empty information folders. Make sure that either you or your agent is responsible for keeping that filled.

9. Signage. Make sure there is good signage that let’s people know that the house is for sale and even some special features about it. Make sure there is also special signage from the main roads so that people know that the house is back there.

10. Other Agents. If you are offering the house for sale by yourself and you are not using an agent, then you should put up a sign that says “agents protected”. This means that even though you are not going to list the property, if an agent brings a buyer you would still pay them the normal half commission.

11. Pictures. If you have the house listed online check what pictures are being used. Make sure they are good, clear pictures that show the features of the house.

12. Description. Whether you are marketing online or in print, make sure you offer a great description of the house. Talk about the features that will sell it. For example, you might say “This is a beautiful home with 10 foot ceilings and heart of pine floors. It’s got an oversized master bedroom with sitting area and large bath. You won’t be cramped for space with this over 3,000 square foot home.”

13. Mortgage Broker. Make sure that you have a good mortgage broker available that offers a wide variety of plans for people with different types of credit, especially if you are listing the house as a FSBO. Many of your buyers are not going to have financing.

14. Incentives. Buyers are usually in need of cash so rather than drop the price, offer to pay things on their behalf. They won’t have to bring as much cash to closing. You could offer to pay the closing costs or give them some sort of allowance toward decorating. That will often attract them more than just the discount price of the house. Let’s say that the price was discounted $10,000 off the original price. This is a big deal to you, but to a buyer, this is only a $10 per month difference.

15. Commission Rates. Offer higher than normal commissions to the selling agent. If the house down the street is offering 3% but you are offering 4%, they are more likely to show the buyers your house.

If you do all of these things, your houses will sell quickly. Just always remember to look at it from a buyer’s prospective and make sure you are offering a great deal.

Lou Castillo has been successfully investing in real estate since the early ‘90’s. Castillo was on his way up the corporate ladder until he recognized that real estate offered a greater opportunity for financial freedom, and for the lifestyle he desired. Lou has a knack for developing powerful & proven systems that work in real estate and has authored more than 7 books and courses on the subject.

For more information or to sign up for Lou’s Powerful real estate Investing Tips go to: http://www.FreeRealEstateStrategies.com

This PR has been submitted by TrafficMagicians.com

Lou has been successfully investing in real estate since the early ‘90’s. This informative website is dedicated to his favorite subject – how to create massive wealth through real estate – and how to do it more quickly and more easily.Lou has Master Degree in Business and Marketing, and for 12 years he worked managing a $50 million business for American Express.

Article Source: AticleRich.com

What's Hot And What's Not

2008-01-16T09:41:00.000-08:00

by: Senator John Seymour (Ret.) January 2008

NATIONAL ECONOMY: As we begin this new year of 2008, the greatest unknown continues to be, can our national economy avoid a recession? The second greatest unknown is, when will the housing market “hit bottom” and stabilize? The answers to these questions are far from clear; however, there are some early indicators that suggest we are about to find out. As to the recession question, we first look at Gross Domestic Product (GDP). A recession is defined economically as two consecutive calendar quarters of negative GDP growth. Most economists and financial analysts are predicting 1% to 1.5% GDP growth for December, 2007. January 2008 expectations are for GDP to rise to 1.5% to 2%, as well as for the first quarter of 2008. The housing industry, historically has made up 1% of the total GDP and, in a down cycle, has lead the national economy into a recession. So, what’s different this time? Because of the “cheap dollar“, foreign trade and exports are up 10% annually and are offsetting 75% of the negative slide in the housing industry. Additionally, U.S. corporations are flush with cash and are prepared to withstand a short term disruption in consumer spending. Having said that, where is the real risk of a recession? In my view, the risk lies in the hands of the consumer and their willingness to continue to spend. Consumer spending represents a whooping two-thirds of our GDP. If the consumer becomes fearful and curtails their spending habits, the dreaded “R” word becomes a reality. December’s new jobs was a paltry 18,000 and the unemployment rate rose to 5%. Despite the fact that U.S. workers enjoyed an average 4.5% increase in wages during 2007, the constant negative drumbeat of the media relative to the sub-prime mess, foreclosures, and falling house values, could eventually cause the consumer to cut back. President Franklin D. Roosevelt, in the depths of the great depression, said “We have nothing to fear but fear itself.” He was right and that much hasn’t changed. That brings us to the second question, when will the housing market hit bottom and stabilize? Although the answer is a little less clear, and I will give you more data in order to clarify later in this newsletter, the short answer is that the housing markets should bottom out and stabilize by the end of the second quarter of this year. Should that occur, the negative bombardment of the media will abate and the consumer should start to feel more confident about their economic well being and continue their spending. Right now, I think that there is a 50-50 chance that the optimistic scenario becomes a reality and we will dodge the bullet of a recession.

THE FED WATCH & MORTGAGE RATES: As expected, Fed Chairman Ben Bernanke and his boys lowered rates again at their most recent meeting last December 11th. Now at 4.25%, their most recent rate cut was their third reduction in as many months. Some had expected a 50 basis point cut; however, there was but one vote of the nine Federal Reserve Governors to support such a move. Ben and the boys next meet on January 30th, and I would expect yet another 25 basis points reduction, bringing the Fed Funds rate to an even 4%. Bernanke, now in his second year as Chairman of the Federal Reserve, is under tremendous political pressure from both the Senate and the House. Senator Chris Dodd (D) Delaware, Chairman of the Senate’s Banking Committee and Congressman Barney Frank (D) Massachusetts, Chairman of the House Banking Committee, have strongly threatened the Federal Reserve with a dilution of their monetary powers and blame them for allegedly causing the sub-prime lending crisis. In response, Bernanke has proposed new Federal rules that would restrict banks in their mortgage lending. The proposed changes would (1) Require lenders to assess sub-prime borrowers’ ability to repay loans from sources other than rising home values. (2) Bar lenders from making high-cost loans that rely on unverified income or assets. (3) Ban lenders from paying mortgage brokers bonuses beyond what consumers have agreed in advance the brokers would receive. Both Senator Dodd and Congressman Frank have condemned the changes as not going far enough and have promised legislation that will impose much tougher restrictions on the mortgage industry. In my opinion, both Dodd and Frank are using the Federal Reserve as a political scapegoat…surprise, surprise. Furthermore, they either don’t understand or don’t want to understand that the majority of mortgage lenders are not banks and do not come under the jurisdiction of the Federal Reserve. Sometimes, some politicians are worse than ambulance chasing trial lawyers.

FEDERAL LEGISLATION & MORTGAGES: With one to one and a half million American homeowners experiencing or facing foreclosure, Congress, the President, and all those who want to be elected or re-elected in 2008, feel compelled to do something to help those in need. The question becomes, what to do and who to do it to? Having spent a total of ten years as a State Senator and U.S. Senator, I confess to not only observing these political feeding frenzies but, on occasion, being a participant. The problem that many legislators face is their lack of real world experience or knowledge of how a particular industry works and how to get the bad guys without hurting the innocent good guys. In this situation, legislators need to know that 93% of America’s homeowner borrowers are having no trouble making their mortgage payments. They need to know that of all the sub-prime borrowers, only 13% of them are delinquent on their loan and or facing foreclosure. They need to know that most first-time homebuyers between 2004 and 2006 were and are sub-prime borrowers. They need to know that sub-prime loans were one of the major factors in increasing the homeownership rate in the U.S. to a record high of 69%. Yes, they need to know that an estimated 15% of all sub-prime loans were made to speculators and non-owner occupants, many of whom never made a payment on their sub-prime loan and have already been foreclosed. They need to know that a small percentage of some borrowers, some mortgage brokers, some mortgage lenders and some banks knowingly participated in making fraudulent sub-prime loans. Like a skilled surgeon, a good legislator knows how to help those in need without destroying a system and process that has been overwhelmingly successful in turning the American dream into reality. With that being said, take a look at some of the bills that have been introduced and are under consideration by Congress and the President. (1) Freeze the rates on all low income adjustable rate mortgages for a period of five years. (2) Restructure the Federal Housing Administration (FHA) to permit them to insure refinanced sub-prime loans and to increase their loan limits to somewhere between $417,000 and $729,750. (3) Forgive taxes on any loan reduction provided by the lender. (4) Grant judges the power to delay or dismiss certain foreclosures and to re-write the terms of mortgage loans. (5) Allow states to issue tax exempt bonds and use the proceeds to refinance sub-prime and adjustable rate loans. (6) Raise the FNMA and FHLMC loan limits, currently at $417,000. (7) Prohibit a lender from making any loan that the consumer lacks a reasonable ability to repay, does not provide a net tangible benefit, or has predatory characteristics. My opinion on those seven proposals are (1) freezing mortgage rates against a lender’s will is nothing more than grand larceny and theft. If you want to freeze a mortgage rate, have FHA refinance the loan and let the federal government pay for below market rate mortgages. (2) Restructuring FHA and increasing their loan limits is a good idea. (3) Forgiveness on taxes due from a lender willingly reducing a loan balance is a good idea. (4) Granting judges the power to re-write mortgage loans and/or delaying foreclosure is a bad idea that will only cause lenders to seek some other form of security to remedy non-payment of their loan or they will just stop making loans to less than “gold plated” borrowers. (5) Allowing states to issue more tax-exempt bonds and using the proceeds to refinance low to moderate income sub-prime borrowers is a good idea, particularly in California. (6) Raising FNMA & FHLMC loan limits is a good idea that should have been done years ago. (7) Requiring lenders to determine the suitability of a loan for a consumer is a trial lawyers dream come true. As these legislative proposals, and others yet to come, move forward, we will monitor them and report back to you.

NATIONAL REAL ESTATE: Existing home sales for November were “UP” 0.4% according to the National Association of Realtors (NAR). October’s sales were off 1.2%. Chief Economist for NAR, Lawrence Yun, said the market appears to be stabilizing. “Near term existing-home sales should continue to hover in a narrow range, just as they have since September, and that’s good news because it will be a further sign that the housing market is stabilizing.” November’s sales were down 20% from November of 2006. Unsold inventories of existing homes also eased off with a 3.6% reduction for November. That follows a 1.9% increase in October. Currently there is a 10.3 months supply of unsold inventory. The national median existing-home price for November was $210,200. That’s down 3.3% from November of 2006. Sales of new homes fell 9% in November, compared to the previous month, after showing small gains in the previous two months. Unsold inventories of new homes in November rose to a 9.3 months supply. That level has only been exceeded twice since 1981. New single-family housing starts fell 5.5% in November compared to October. That’s the lowest level of housing starts since April of 1991. On the foreclosure front, new filings of foreclosures for November dropped 10% compared to October. Filings had also dropped 8% in September compared to August. On the other hand, we can expect another rise in foreclosures as some two million adjustable rate loans are due to “reset” over the next seven months. The number of those loans that will end in foreclosure is very tough to predict as most major lenders are already trying to counsel and work with those borrowers in order to avoid foreclosure.

CALIFORNIA ECONOMY & STATE GOVERNMENT: The Golden State only created 900 new jobs in November; however the unemployment rate remained steady at 5.6%. Clearly, the loss of jobs in the real estate, financial, and construction industries have taken their toll on our economy. Combined, they lost 13,000 jobs in November. However, I continue to believe that California will dodge the recession bullet and even if the national economy does go into a recession, California will be spared any serious economic dislocation. The reasons for my optimism are the very healthy high tech industries in the Bay Area and in Orange County and the continuing strong and growing export trade business enriching the ports of Los Angeles and San Diego. Additionally, both our tourism and agriculture industries are expected to have a stronger 2008. Our state government is once again in fiscal turmoil. Faced with a $14 billion dollar deficit, Governor Schwarzenegger has called the State Legislature into an emergency special session in order to try to balance the state budget for 2008. When Schwarzenegger was first elected in 2003, he faced a similar situation and was able to bring the state back from the brink of bankruptcy. This time it will be even more challenging and unless he is willing to call the bluff of the free spending legislature, we can expect some tax increases. On the home mortgage bailout front, Senate President Pro Tem Don Perata (D), from the Bay Area does not want to be outdone by the liberals in Congress and, so he has introduced legislation requiring lenders to “freeze” rates on adjustable mortgage loans. This is just one more instance of “ political grandstanding” and adds another example of just how anti-business our state legislature has become. Expect his bill to fail without republican support and should it pass, expect the Governor to veto another piece of legislative garbage. If the legislature really wanted to help those truly deserving California families faced with imminent foreclosure, they would pass legislation authorizing the California Housing Finance Agency to sell a new set of tax exempt bonds, backed by home mortgages, and using the proceeds to refinance and insure new loans to those in need.

CALIFORNIA REAL ESTATE: According to the California Association of Realtors (CAR), existing single-family home sales were “UP” 8.5% in November compared to the previous month of October. Condo resales were down 5.2% for the same time period. Compared to November of 2006, home sales were down 36.2%. CAR’s Unsold Inventory Index rose to a 15.3 months supply at the current sales pace. Historically, a “stable” housing market has a six months supply of unsold inventory. New home builders continue to work off unsold inventory with continuing price reductions and aggressive buying incentive. Projections for 2008 new housing starts are 113,500. That’s indicative of the fact that some areas of Southern California are experiencing much softer and weaker housing markets than others. Following are the comparative regional sales and median price numbers for November:

So, when do we see the bottom and stability in the Southern California housing market? Obviously, stability will be achieved at different times, just as the above figures reflect the market differences. However, barring a severe recession, I would expect a bottom by the end of the second quarter for Los Angeles, Orange, Coachella Valley and San Diego County areas. The Inland Empire should see the bottom by the end of this year. From those points forward, we should see prices stable to slowly recovering through 2009. Rents on residential property continue to rise an average of 4.6% annually in Southern California and the average occupancy rate continues at 95%. Rising rents and declining unsold inventories for sale will hasten the housing recovery.

This monthly newsletter has been published for the last fourteen years by Orange Coast Title for the benefit of their customers and affiliated companies. It is distributed by their title representatives for your reading and business purposes. Our title representatives work hard to continue to earn your title business by providing the very best in title insurance services. Give your next title order to one of our title representatives. You’ll be glad you did!

SOURCES: LA Times, Wall Street Journal, Desert Sun. DQNews, OC Register, San Diego Tribune, Inland Valley Bulletin, Barrons, Kipplinger California Letter, CAR, NAR, BIA, and MBA

South Bay Real Estate Forecast...Opinion or Fact?

2008-01-02T04:05:00.000-08:00

In my mind 2008 is officially here. A few minutes ago I was laying in bed going over all the things I had to do and wondering how in the world I was going to get them all done in time. Then I asked myself...In time for what? Will our industry survive the doom and gloom that everyone is preaching out there? After eleven years of working in this wonderful industry and area, will I be one of the ones still standing in 2009? Of course!

It's so easy to get caught up in all the negative clatter around us. We enjoy a wonderful and beautiful area here in the South Bay and for that reason (as well as location) we should bounce quickly from the short pause we experienced in the last quarter of 2007. When will the bottom arrive you ask? I ask you in return...why do you care? You can take a look at any ten year span here in the South Bay and see that every single time property values increase. That's any ten year span. So, for example, if you looked at 1990 to 2000 or 1956 to 1966, your property value would have increased.

The days of turning and burning are going to be gone for a bit, however for future homeowners, move up buyers and the like it's a great time to buy or sell. Why? Interest rates are still at historical lows and we've shifted into a buyers market. I believe the South Bay will enjoy a great real estate market this year. Not only for the reasons listed above, but also because of location. People are always moving west and unless you have gills, we live as far west as you can go. That's a huge factor in this type of market when you're looking at it from a 10,000 foot perspective nationally.

So, whether you're a real estate professional like myself or a consumer looking to buy or sell. Get ready for 2008 and brush off all the negative chatter around you. As my father always told me growing up..."Don't worry about what others are saying or doing, just pull your little red wagon down the road and do your own thing!" Cheers to you and yours and whatever side of the fence you're on...Happy Hunting out there!

Press Release: Text My MLS Goes National

2007-12-13T05:27:00.000-08:00

Normally I don't run across marketing ideas that I think make a considerable difference in selling a home in today's Seller vs. Seller market, but recently I ran across a tool that generates warm buyer leads right into your agent's lap! Text My MLS is a call capturing tool that is going to be a must addition to any For Sale sign and Print Ad used in the marketing of your home. This product is one more way that Realtors will be able to tap into the ever growing market of Buyers in the X and Y Generations. They have money, are waiting longer to get married, aren't afraid of buying property on their own and are texting fanatics! Remember though...no amount of marketing will get a home sold if it's not priced properly. If you've been sitting on your listing for a long time it's definitely time to take a hard look at the price you have it offered at. Read on for the Press Release:

TextMyMLS Keeps Home Buyers and Real-Estate Agents Connected!
TextMyMLS Mobile Marketing, the premier provider of self-service mobile marketing solutions for Realtors, announces several new state exclusive strategic partners. Adding an exciting extension of their real-estate and mortgage division these companies are sure to have great success by offering TextMyMLS home marketing texting services to their state Realtors.

Content Market = "68.7 million text users and Real-estate have never been so competitive" said Larry Cottingham, Kentucky TextMyMLS partner. "And this fact separates the industry leaders from the part-timers. Homeowners want their selling agents using every tool available to market and sell their home. Falling short of $10 a month this service is a win-win situation. Winning listing appointments and generating leads is most important to me to succeed" continued Cottingham.

Using TextMyMLS is simple. The agents simply hang sign riders from the signs of their listings, informing home buyers of the availability of instant information and photos. Prospective home buyers see these signs and text message a short, custom code to a special TextMyMLS phone number. Within seconds, all of the essential property information including price, square footage and amenities are immediately sent back to the buyer's phone, along with photos. With every inquiry, the real estate agent is immediately notified of the lead via email.

Text Messaging Background
SMS (Text Messaging) is a breakthrough communication medium as evidenced by growth year after year. Over 18.5 billion text messages are sent every month – and that number has grown by 250% each year for the last two years. To validate the future growth within the channel, over the next 2 years, Verizon Wireless anticipates the number of text messages sent by their users on their network to grow nearly 5x from 400mm per month (in July 2005) to over 2 billion per month.

TextMyMLS works on over 96% of all cell phones in the United States today. Photos are currently supported on Cingular, AT&T, Sprint, T-Mobile and Verizon phones. SMS is also the only universal mobile platform for the masses. It does not require special equipment as it is already available on over 98% of all cell phones.

More information on home text marketing can be found at http://www.textmymls.com/.

Life Of A Short Sale

2007-12-11T07:12:00.000-08:00

If you're a seller in a short sale situation you should always seek legal council before starting a short sale, NEVER let anyone advise you to stop making payments!

When working with a Real Estate agent you must provide them with a written statement authorizing them to represent you in any negotiations with the lender and make sure to show the loan number on all contacts.
As a seller you MUST send a hardship letter to the lender advising them that you can no longer make payments on the loan. (This is most important!)

Here's an example:

Dear Sirs,

As a result of very poor health condition we are unable to continue to make any payments on our obligation to your company.
Since the real estate market will not support the amount of the loans on our home we are asking for you to reduce the amount of the loan so that we can sell the home.

Thanking you in advance,
Mr. and Mrs. Jones

or

Dear Sirs,

We are no longer able to make any more payments on our loan with your company. We have the home listed with a real estate company however every agent agrees that our home is over priced due to a change in the real estate market. We need to sell our home however we owe more than we can sell it for.
We are asking for your company to reduce the amount of the loan so that we can sell the home.

Thank you,
Mr. and Mrs. Smith

Once you have an agreement with an agent to take on your home as a listing make sure all loans and marketing costs including commissions, even if they are grossly overpriced, are shown with the remark "subject to lender approval." The agent's listing (copy) must be sent to the lender.

Next, a B.P.O. (Broker Price Opinion) letter must be sent to the lender showing all current homes for sale in the area of the subject property including comparable sales within six months. Pictures of the subject property and comparable sales are always helpful. At this time you realtor should ask for a commitment from the lender to allow you to reduce the sales price. Your realtor should contact their Title Representative to order a listing preliminary title report!

Remember the seller's net sheet showing all costs including commissions is very important because you are asking for a reduced loan amount. It's also very important to remember that as a seller you CANNOT receive any proceeds from a short sale.

If you're Real Estate agent finds you a buyer, make sure they get a loan approval letter from the buyer's lender before they submit the offer to your lender.

Several lenders might offer different options to the seller, the most common are:

A forbearance agreement
A reduced loan amount
Foreclosure or a deed in lieu

Ask your Real Estate agent more about these options when offered. If you're having trouble finding a great short sale agent contact us and we'll do our best to point you in the right direction.

Hermosa Beach Farmers' Market...Healthy and Fresh

2007-12-08T11:27:00.000-08:00

You'll find all kinds of fresh fruits, vegetables and flowers each and every Friday at the Hermosa Beach Farmer's Market. All the produce is hand picked and vine ripened then sold by certified farmers who bring their goods from local farms.

You'll find a variety of berries, sauash, carrots, beans, nuts and many other items to pick from. They even have great salad mixes. For the past 10 years the Hermosa Beach Farmer's Market has been open to the public every Friday from 12pm to 4pm between 8th and 10th Streets on Valley Drive. Perfect for a bright sunny day or a reason to get out of the house on a rainy Friday!

Santa Claus Is Coming To Town!

2007-12-05T17:21:00.001-08:00

We all love to run out to the streets and see Santa cruising along our block in his sleigh throwing candy canes and wishing everyone a Merry Christmas. It's also a great time to mix with neighbors and say hi to some that you never see. Below are the South Bay cities that Santa will be visiting and the time he'll be sleding down your street! Merry Christmas from our family here at South Bay Marketplace to yours!

Torrance

Here are the nightly boundaries:

• Saturday: Area bounded by Carson Street, Maricopa Avenue, Madrona Avenue and Crenshaw Boulevard.

• Sunday: Area bounded by Carson Street, Sepulveda Boulevard, Crenshaw Boulevard and Western Avenue.

• Monday: Area bounded by Del Amo Boulevard, Carson Street, Crenshaw Boulevard and Western Avenue.

• Tuesday: Area bounded by Sepulveda Boulevard, 239th Street, Crenshaw Boulevard and Arlington Avenue.

• Wednesday: Area bounded by Sepulveda Boulevard, 242nd Street, Arlington Avenue and Western Avenue.

• Thursday: Area bounded by Sepulveda, Lomita, Hawthorne and Crenshaw boulevards.

• Friday: Area bounded by Pacific Coast Highway to south city limits, Crenshaw Boulevard to east city limits, Windmill to south city limits, Rolling Hills Road to Singingwood Drive.

• Dec. 2: Area bounded by Sepulveda Boulevard and Pacific Coast Highway west of Anza Avenue/Calle Mayor.

• Dec. 3: Area bounded by Pacific Coast Highway, Winlock, Rolling Hills Way and Hawthorne Boulevard and residences west of DePortola Park.

• Dec. 4: Area bounded by Calle Mayor and south city limits southwest to Anza Avenue/Calle Mayor.

• Dec. 5: Area bounded by Pacific Coast Highway and city limits west of Calle Mayor.

• Dec. 6: Area bounded by Torrance Boulevard, Pacific Coast Highway, Hawthorne Boulevard and Anza Avenue/Calle Mayor.

• Dec. 7: Area bounded by Pacific Coast Highway, south city limits, Hawthorne Boulevard and Via Colusa and Calle de Ricardo.

• Dec. 8: Area bounded by Torrance and Sepulveda boulevards west of Anza Avenue.

• Dec. 9: Area bounded by Torrance Boulevard, 190th Street, Anza Avenue and Madrona Avenue.

• Dec. 10: Area bounded by Del Amo Boulevard and Torrance Boulevard west of Anza Avenue.

• Dec. 11: Area bounded by 190th Street and Del Amo Boulevard west of Anza Avenue.

• Dec. 12: Area bounded by Artesia Boulevard and 190th Street west of Prairie Avenue.

• Dec. 13: Area bounded by Artesia Boulevard, San Diego (405) Freeway, Prairie Avenue and Crenshaw Boulevard.

• Dec. 14: Area bounded by Redondo Beach, Artesia, Crenshaw and Hawthorne boulevards.

• Dec. 15: Area bounded by Redondo Beach, Artesia and Crenshaw boulevards and Western Avenue.

• Dec. 16: Area bounded by Artesia Boulevard, San Diego (405) Freeway and Western Avenue.

Redondo Beach

Monday 11/26: Start at Johnston and Beland, Go N/B and cover area Between Johnston and Dow, then Gibson and 159th, 160th to Beland and end.

Tuesday 11/27: Start at Vail and Timothy. May and Pinckard. Then triangle area south of Beland to Robinson. Barkley, Gibson, Perkins, Carlsbad…etc (see map).

Wednesday 11/28: Start at Plant and Vail, go W/B. to Green, then right to Perry and E/B on Perry to Rindge. Left and go to Ernest, go W/B to Aviation, then right and E/B on Farrell to Vail. Left turn and W/B on Bataan to Aviation, then right and E/B on Dufour to Vail. Left again, the W/B on Warfield to Aviation.

Thursday 11/29: Begin at Curtis and Aviation, E/B to Perkins, then left and W/B on Gates to Aviation. Right on Aviation to Graham, then E/B to Perkins. Make a left and W/B on Robinson to Aviation.

Friday 11/30: Aviation and Mathews, E/B to Perkins, then left and W/B on Nelson. Make a left at Aviation Wy, a right at Mathews to Aviation, then right on Aviation to Ruhland. E/B on Ruhland to Perkins, then W/B on Voorhees to Aviation.

Saturday 12/01: Start at Ruxton and Rockefeller and go W/B to Aviation Wy. Turn right and come E/B on Carnegie to Ruxton. Turn left and W/B on Vanderbilt to Aviation Wy. ….

Sunday 12/02: Start at Ripley and Marshallfield and go W/B to Harkness. Go right to Clark and E/B Clark to Ripley. Then W/B on Harriman to Harkness, and E/B on Huntington to Ripley.

Monday 12/03: Start at Flagler and Armour, go W/B to Harkness, RIGHT, then right to Spreckels and E/B to Ripley. Go left and come back W/B on Havemeyer. Turn left on Flagler and go to Spreckels then right to Harkness, right again to Morgan and go E/B to Blossom. Then left to Speyer and come back W/B on Speyer to Harkness. Make a right and go to Pullman. Go E/B on Pullman to Ripley, then right on Ripley to MacKay. Turn right on MacKay and turn left onto Belmont W/B Belmont to Harkness.

Tuesday 12/04: Start at Harper and Palm and go N/B. travel to Artesia. Then back and forth on Steinhart, Goodman, Stanford, Ford, Reed, Herrin, Carver, Wollacott and Axenty.

Wednesday 12/05: Start at 190th and Pruitt, go to Armour and travel E/B to Firmona. Make a left and come back W/B on Spreckels to Pruitt. Right to Fisk and E/B to 190th, then right and another right on Firmona. Go N/B to Alvord and stop for a few minutes, then go to Ralston and W/B to Pruitt. Make a left at Pruitt and come back E/B on 2500-2600 Alvord. Go left at Inglewood Av. Left again at Ralston, then right on Felton. At 185th St, turn left to Pruitt, then right to 184th, and E/B on 184th across Inglewood to Firmona. Go right to 185th and W/B on 185th back to Felton. Go N/B to 183rd, and E/B to Firmona, then W/B to Felton on 182nd Pl, and back E/B on 182nd St to Inglewood.

Thursday 12/06: Start at 190th and Green, go N/B to Ripley, then right and back S/B on Cluster. Make a left at 190th to Blossom, then N/B on Blossom to Havemeyer, E/B on Havemeyer to Rindge. Go right to service road at 190th, and make a left. Go to Earle and do each of the Courts. Then E/B on Ripley to Meyer. Right on Meyer. Left on 190th to Phelan, N/B on Phelan to Fisk, then W/B to High, right and back E/B on Alvord. Go right to Lilienthal. Make a U-turn at the park and come back N/B to Ralston. Go W/B on Ralston to Meyer, then right and back E/B on Hill to Lilienthal. W/B on Ives, and E/B on Hadley.

Friday 12/07: Start at Amethyst and Harkness, Turn left on 190th and go west to Goodman, turn right, then W/B on Lomax to Prospect. Turn right to Van Horne, then E/B Van Horne to Harkness. Make a left then W/B on Armour to Reynolds. Continue to do 1600-1700 blks to Speyer, then do Harper to Aviation, Steinhart back to Belmont, then N/B Goodman to Aviation. Come back on Stanford to Belmont and N/B Ford to Aviation.

Saturday: 12/08: Start at RBPD and go N/B on Broadway to Catalina, back S/B on Elena to Carnelian. Make a left and take PCH, then make a left on Beryl and do Francisca. North on Catalina. Then S/B on PCH to Diamond. Turn left on Diamond and go to N. Gertruda. Go N/B on Gertruda to Carnelian. Make a right, go to Guadalupe, then S/B tp Diamond. Make a left, to Irena, then N/B on Irena to Agate. Right turn to Juanita, then S/b on Juanita to Del Amo. Turn left and go to Lucia. N/B on Lucia to 190, turn right and come back S/B on Maria to Del Amo. Then N/B on Paulina to 190th. St.

Sunday: 12/09: Start at RBPD, go S/B on Broadway to Torrance Bl, then E/B Torrance to S. Francisca. Go N/B to Vincent Park, then right, come back S/B on Guadalupe, to Torrance, then left to Helberta and back N/B to Vincent, then right to Irena, S/B to Torrance, then left and back N/B on Juanita to Vincent. Come back S/B on S. Lucia to Torrance.

Monday: 12/10: Start at Broadway and Torrance go S/B to Knob Hill, then N/B on Elvira to Sapphire. Turn right and cross PCH on Sapphire to Knob Hill, turn right and come back to Gertruda. Go N/B to Pearl, then left to Francisca, left again to PCH. Then left onto Sapphire, this time go to Helberta and go left to S. Irena, come back S/B on S. Irena. Left on Serpentine, then left again on S. Juanita to Camino Real.

Tuesday: 12/11: Start at Camino Real and Juanita. Go north on Juanita to Rita and make a right. Rita to Lucia to Pearl. West on Pearl, right on Juanita to Torrance, right on Torrance then right on Juanita, south to Camino Real, right back to Juanita, north to Pearl, left to Camino Real, then N/B to Miramar, then right, then right on Sierra Vista, left on Camino Real, to Torrance east to Opal east. Right on Prospect to Barbara. Back N/B on Prospect to right on Ruby, right on Faye, then north on Susana, and W/B on Pearl.

Wednesday: 12/12: Start at Ave G / PV W/B to PCH, then E/B on Ave F to PV. W/B on Ave E, make a right on Ave D to S/B Gertruda, then back on Helberta to Ave D., S/B on S. Irena (Do Ave D as you are going back and forth on Gertruda, Helberta and Irena). Take PV to Prospect and do the 1000 blk Ave D, then W/B on Ave C back, including 1000 block, then E/B on Ave B(including 1000 block), then Ave A(1000 block) to PCH. Take Knob Hill to Camino Real.

Thursday: 12/13: Start at S. Irena and PV Bl, go east to 1400 blk, then back to W/B on Helberta to PV, then E/B on S. Gertruda go to Messina and Circle Drs. Then W/B on Ave E to Pv, and E/B on Ave F to Prospect. Then W/B Ave G to PV. Then S/B on PV to Catalina. Turn and immediately take the left to Camino de la Costa. Go W/B on Paseo de la Playa, come back E/B on Vista del Mar, then N/B along the 1700 Blk of Camino de la Costa to Ave I. Make a left and to go the Esplanade. Then N/B to Ave H. Do the 100-200 blks of the Avenues and finish at Knob Hill and PCH.

Should weather interrupt his visits, there will be three make-up days: December 14-17, 2007 if needed.

Friday 12/14: Make up day #1:

Saturday 12/15: Make up day #2:

Sunday12/16: Make up day #3:

Manhattan Beach

• Monday: Starts at Second Street and Peck Avenue. Second Street, Aviation Boulevard, Artesia Boulevard and Peck Avenue.

• Tuesday: Starts at Second Street and Meadows Avenue. Second Street, Rowell Avenue, Artesia Boulevard, Sepulveda Boulevard.

• Wednesday: Starts at Dianthus and 11th streets. Manhattan Beach Boulevard, Sepulveda Boulevard, southern city limits, Ardmore Avenue.

• Thursday: Starts at Sixth Street and Meadows Avenue. Sixth Street, Aviation Boulevard, Second Street and Sepulveda Boulevard.

• Friday: Starts at 11th Street and Sepulveda Boulevard, Aviation Boulevard, and Eighth Street.

• Dec. 11: Starts at Pacific Avenue and Valley Drive. Pacific Avenue, Rosecrans Avenue, Sepulveda Boulevard, and Ardmore Avenue. Santa also will be parked at the main pool at Manhattan Village from 7:30 to 9 p.m.

• Dec. 12: Starts at Manhattan Beach Boulevard and Meadows Avenue. Marine Avenue, Rowell Avenue, Manhattan Beach Boulevard, Sepulveda Boulevard.

• Dec. 13: Starts at 18th Street and Redondo Avenue. Marine Avenue, Redondo Avenue, Manhattan Beach Boulevard, Rowell Avenue.

• Dec. 14: Starts at Ingleside Drive and First Street. 45th Street, Crest Drive, Rosecrans Avenue, Bell Avenue, 25th Street, Ardmore Avenue, southern and western city limits.

El Segundo

The El Segundo Police Officers Association and the El Segundo Kiwanis Club are again assisting Santa Claus with his pre-Christmas visits to El Segundo this holiday season.

Santa is scheduled to visit El Segundo from December 12th through the 16th starting on the west side of the city. Santa will work his way east to Sepulveda each night. Police cars with lights, sirens, and music playing will signal Santa’s arrival on your block. He is expected to begin each night at 5:15 PM and go until 9:00 PM.

Please call Santa’s Elves at (310) 524-2262 if you have any questions. The street schedule is as follows:

Monday December 12th – West end of the city, east to Loma Vista Street.

Tuesday December 13th – Loma Vista Street east to Main Street.

Wednesday December 14th – Main Street east to Sheldon Street.

Thursday December 15th – Sheldon Street east to Center Street.

Friday December 16th – Center Street east to Sepulveda Street.

In case of a rain out, a make-up day is scheduled for Monday, December 19th.