Talking Real Estate

In what marks the largest bail-out of a financial sector, the Federal Government has taken over the mortgage giants Fannie Mae and Freddie Mac, who hold over half of the $12 trillion dollar mortgage market for the USA. A collapse of these two government sponsored enterprises would have had a devastating impact of the US economy. The big question here is this really a cure and the answer to turn the struggling economy around? Well it did so momentarily, giving stocks a nice surge and brought mortgage interest rates down about 0.5%.

My thought is the with all the govenrment take over and supplement of the mortgage and credit crisis we have, we are not going to be happy with the end result. It is amazing to think that our government who can’t even balance their own budget, has the ability and knowledge to balance out the economy and bring it back. Oh, they can do it but at what cost to the tax payers? They will just pour in all the money needed to make it work as they do with everything else they run.

So far, the only ones I have seen benefit from all the laws and changes and stimulus packages are the lenders and their investors. Granted they have lost billions of dollars and are the backbone of our economy, but read carefully when they talk about homeowner assistance programs and help. Most of these have very specific qualifications, which a large majority of people can not meet. One of the big ones is the issuance of 1099 by the banks to homeowners. I think you are going to see a lot of law suites and a more depressed economy next spring when all these people who have already lost their home are then getting huge tax bills or deficiency judgements against them for the difference. That will be a discussion for next time.

For more information on the Fannie Mae, Freddie Mac bailout go to click here.

With all the news about foreclosures sweeping the nation, does anyone kow where to turn? Many of the real estate agents that sold people their homes are no longer there to help them now they are in a bind. Lenders are not willing to workout a deal and refinance the mortgages. And homeowners don’t know where to turn, besides out the door and off to somewhere else.
After seeing all that has been taking place with the foreclosures, I decided someone needed to help these people. So I took it upon myself to study and learn from some of the top short sale experts in the country. I now have the knowledge and skills to help people deal with their situation by providing them solutions. The key to obtaining the best solution is in the timing of when someone contacts me. It is crucial that to provide the most number of options and best for the owner, we need to start before they get behind on payments or are being late. Once the bank has filed a Notice Of Default (NOD)or Notice Of Trustees Sale (NTS), their option become more limited as the clock is ticking.

Here is a list of options I provide every homeowner:

1- List their home and try to sell it
This is a good option to start with for homeowners who are behind on payments or know they will not be able to keep up with them. The problem we face is that the value of the home is usually less than what is owed. If that is the case, once we obtain an offer we will negotiate with the bank to accept less than what is owed on the home, known as a short sale.

2- A Loan Modification
This is best approached before a NOD is filed. Some people are having success and with the new bills being passed by the government, even more people should be able to use this option. I do caution people who exercise the option to use the new HOPE Program to refinance their home, as it is basically an Equity Agreement with the government. When you use thier program, they will require that should you sell your home in the future, they will receive at least 50% of the equity in your home. If you think investors are shady, now you have the government taking an investment stand and obtaining an interest in millions of dollars of private property, at the exense of the tax payers and homeowners. I also have a group of attorneys who assist homeowners who may have been taken advantage of or had illegal loans done. They deal directly witht the banks legal department, often saving homeowners thousands of dollars on payments and interest.

3-Forbearance Agreement
This works when you can afford the payment, but fell behind on payments due to short term interuption or financial problem. Basically you work out a repayment plan with the lender, which will temporarily increase your payments over a period of time to catch you back up.

4-Subject to
This works when an investor is willing to make up the back payments and take over the home “subject to” existing financing. They may do an equity agreement with the owner or the owner may move on knowing they can’t afford the home and the investor resales or leases out the home. 2-5 years later the investor refinances out the home and the homeowner moves on with their share of equity if that was the agreement.

5-Chapter 13 Bankruptcy
Not being an attorney doesn’t allow me to provide legal guidance or advice, but I do inform them that this is an option and they should speak with their attorney for more information about the process.

6-Deed-in-Lieu
This is the worst of all options in my opinion. You maight as well just let the home go to foreclosure as this just simplifies the process for the bank and you end up with nothing in the end any way, besides a possible 1099 or deficiency judgement.

7-Short Sale
If we are unable to help a home owner get a loan modification or find another way to keep their home, this is the next best option. I work this from a different angle than many agents. I actually will make an offer on the home myself as an investor. I then do all the negotiations with the banks to take less than what is owed on the home. This is not a simple task and takes good negotiation skills and specilaized knowledge, which I have obtained through months of training and coaching. Once I get the banks approval, I find another buyer to buy the home from me. At times, I may find a buyer who will lease it back to the current owner for a period of time, making it a win-win-win for everyone. The homeowner avoids a foreclosure and I always negotiate out the deficiency judgement. The bank wins by not having the home sit on their books for months and loosing money. They are in the business to lend money, not own real estate. And I win by making a little cash on the deal, as a fee for my service.

These are all the simplifed versions. When I meet with a distressed homeowner, I go through each of them in much more detail. I always advise them to speak with their attorney and tax accountant to obtain any legal advice or ask their questions. I provide them all the forms I use so they can review over them as well.

Well I hope you never have to be faced with chosing one of these solutions, but should you or anyone you know be in a situation and needing help, please contact me. I specilize in helping people in distressed situations and I am here to help. Call 805-616-5398 or visit my site at www.ForeclosureSolutions4You.com

I’ve just sold a Resale - condo-townhouse property at 1675 21st St #12 in Oceano. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

It is amazing to watch the way people think and make decisions. Maybe it was the way they are educated or what they learned from their parents, that has most of them functioning backwards. I think FEAR is what causes most people to make the decisions they do when they do.

When prices rise, whether it be real estate or stocks or most anything for that matter, that is when most people buy- Caused by fear of missing out or not being able to afford to get in later. Then when prices fall, they sell- fear of loosing everything. This is very much a reality if you did not do your research to reduce your risk before buying in the first place.

I believe in buying low and selling high. That is why now is when people should be buying real estate. With all the foreclosures and prices dropping, there is no better time. There are some great deals, even in your own backyard. Some markets are just emerging making them great places to buy as well. They key is to buy just as markets are getting ready to start appreciating, then sell while the market is at its hottest point and still rising. This will ensure you get the best price without the chance of the market turning the oppisite direction.

So why are buyers waiting? FEAR of the unknown. Nobody knows where the bottom is, just as no one knew where the top was. A lot of people say they are waiting for the bottom of the market before buying. All I can say is if you can predict that, let me know when that will be. Truth is the market will likely turn around on the up as fast as it did on the down. There are always signs in the market, but you must ignore the media or your view will be blurred.

If you want a list of the best deals in San Luis Obispo County, email me at Kylie@KylieHatch.com or visit my website www.SLORealEstatePRO.com.

I am out there everyday and currently buying properties myself. I am currently working a few deals, and looking for buyers to take them over. If you would like to be added to my INSIDERS BUYERS LIST, email me. I don’t do a deal unless I can make money on it, which means you will too.

Come on- short sales might be a little work, but that’s your job.  I am finding that many agents do not want to be involved in short sales. They are not educated on how to handle them and therefore, avoid them like the plague.

As a real estate consultant, I am currently working on several short sales for my clients. I don’t know everything about them and am stumbling through myself, but at least I am willing to try to help. Many agents are not willing to go through the process, and therefore many people are being left to fend for themselves. As REALTORS, it is our job to help these people. This does not always mean selling the home, though that is the case most of the time, especially these days. We are the negotiators and should be serving all our clients, whether it be find a way to keep them in their home or help them sell it. We are the mediator and the professionals who should be assisting our clients through their hard times.

If you are a home owner who has received a Notice of Default, the clock is ticking. We need to meet and create a plan to help you through your situation. Please contact me ASAP 805.616.5398, I am here to help.

Major Construction for 

Week of 3/3/08

Orcutt Rd. – Laurel Lane to Fernwood Dr .

Lane control for new water line installation

Night work will be scheduled for one night to make a connection at Fernwood Dr .

Morro St.- Palm St. to Peach St .

Partial closures in Morro St for paving operations

Higuera St. at Bianchi Lane

Lane control in Higuera and Bianchi for water line installation and testing

Santa Barbara - Broad St. to High St .

Lane control, one lane in each direction for street widening operations

Possible road closure 10 PM to 5 AM for Gas Co. installation of a new high pressure main.

South St. - Broad St. to Bee Bee St .

Lane control for the installation of a new gas main.

Los Osos Valley Rd. – Hwy 101 to Madonna Rd

Lane control for installation of a new drainage inlet

Los Osos Valley Rd. – at the Golf Course

Lane control from 8:30 AM to 2 PM

Installation of a new reclaim water line into the golf course

Foothill Blvd at Santa Rosa St .

Lane control for paving in the bike lane

Grand Ave. – Slack St to Wilson St. , Starting Tuesday

Lane control will consist of one south bound lane and two north bound lanes open at all times.

Work hours will be restricted from 8:30 AM to 2:30 PM near the Cal Poly campus.

Week of 3/10/08

Orcutt Rd. – Laurel Lane to Fernwood Dr .

Lane control for new water line installation

Higuera St. at Bianchi Lane

Lane control in Higuera and Bianchi for water line trench paving

Santa Barbara - Broad St. to High St .

Lane control, one lane in each direction for street widening operations

South St. - Broad St. to Bee Bee St .

Lane control for the installation of a new gas main.

Los Osos Valley Rd. – at the Golf Course

Lane control from 8:30 AM to 2 PM

Installation of a new reclaim water line into the golf course

Grand Ave. – Slack St to Wilson St .

Lane control will consist of one south bound lane and two north bound lanes open at all times.

Work hours will be restricted from 8:30 AM to 2:30 PM near the Cal Poly campus.

Marsh St. at Santa Rosa

Lane control for the installation of a new traffic signal poles, conduits and controller.

If you are in the Central Coast andwould like to see one of the most beautiful Craftsman Style homes in the area, come by my open house today, Sunday from 11-2pm. Even if you are not looking to buy or sel, you really should come see this home. It is located at 2290 Santa Ynez Road in San Luis Obispo. Exit Grand from the 101N or Montarey from 101S and follow the signs.

Check out this new Single-family property that I just posted on my Web site. It is at 928 El Morro in Los Osos. This Single-family property has 2 bedrooms and 2 baths. A beautifully remodeled 2 bedroom, 2 bath Baywood cottage with loft. Large corner lot with room for possibilites. Amenities include concrete countertops, stainless steel appliances, new tile and travertine in bathrooms and slate fireplace. New dual pane windows, doors, and flooring throughout. Recessed lighting in living room, hallway and master bath. Loft located in the garage is a great area for extra space, storage, music or whatever! One block from Baywood elementary, and steps to the bay, restaurants and farmer’s market.
Listing Agent- Bob Davis, Keller Williams Realty.