Tim 4 OC Real Estate

I’m not in the loan business, so I will admit I don’t have “expertise” on this topic.  However, as a real estate agent, and homeowner for over 30 years, some advice that is being given today just doesn’t make sense to me, and it might really hurt you if you buy into it.

It works like this.  A homeowner discovers their property is no longer worth what they paid for it based on resale information they receive for similar homes.  They get frustrated, and feel they are wasting their money.  Maybe they had a rate adjustment, and a higher payment, and they are frustrated.  So what should they do ?

They start following up on some of the emails and ads they see for loan modifications.  They are told to stop making their payments, and the lender will be forced to lower the interest rate and the loan balance.  So, they do this, and happily spend the money on luxuries they just don’t need.

This advice just doesn’t make sense to me.  First, it would appear that the person giving the advice gets paid up front, so they have no reward for helping you to succeed with a better financing plan.  Secondly, I don’t see why this is an incentive for a lender to suddenly cut you a deal.  In fact, you risk a rather quick foreclosure, and possibly a default judgement for the difference between what you owe and what the bank receives when selling the property.  In addition, you risk a destroyed credit rating for 10 years.  You could be out of the market for purchasing a new home, and have difficulty with renting.  You will pay higher interest for any loans you might get to pay for cars and other large purchases, and if you are job seeking, you may have problems with a bad credit rating.

Certainly having a loan modified is important.  Banks may well adjust interest rates, especially if you have an adjustable mortgage.  It is less likely they can adjust how much you owe on a loan because they actually paid that money to someone else when you signed the contract.  It is not as likely they can make you a gift of their investor’s funds.

If you need to make changes on your loan, your best results will come when you work with the bank.  Making your payments shows your good faith.  Emails, and even phone calls, just don’t get a timely response.  If you have a local branch of the bank that handled the loan, pay them a visit.  Ask for help from the manager or loan officer.  Be open about your difficulty, and present a cooperative, but passionate, plea for help.  Be sure to follow up quickly to get a progress report. 

If you just don’t get anywhere, stick with it.  The federal government has a new program, and more will be coming.  Also, talk to the person who originated the loan.  Remember, if they are now “selling” loan modifications, be very, very cautious.

For more information, here are some helpful links:

   Orange County Home Ownership Preservation Collaborative

   CA Consumer Home Mortgage Information

   CA Department of Real Estate Consumer Alert

This article will hopefully get you to think about your options.  More information will be coming in future posts.  Share what you think below.

We’ve got to admit, when summer vacation arrives, Rancho Santa Margarita has a lot of fun activities.  Be sure to check out some of these in the upcoming weeks:

Taste of Rancho - June 6, 4 - 9 PM Held in Central Park, behind City Hall, local restaurants will provide samples of there menus at reasonable prices.  You may also visit the beer and wine tasting garden.

Summer Concerts  In Central Park 6-8 PM

July 12  Rock to the tribute band for Bruce Springsteen. 

July 19  Hello Cleveland: A rock and dance band with a wide range of music offerings

July 26  Stone Soul: performing classic 60’s soul and Motown music

August 2  Hot August Night - a tribute to Neil Diamond with his classics

August 9  Swing Shift - performing great dance and romance tunes

August 16 Neon Nation - focused on the 80’s experience

Starr Ranch Summer Junior Biologists

Multiple sessions are offered in June and July will acquaint kids with the scientific study of wild animals and their habitats.  For information call 949 858-0309.

Summer Camps at the Community Center

There is no need for your kids to sit home in front of the TV.  Let them stretch their experiences with summer camps in town center.  Camps include Engineering with Legos, Dnace and Cheer, Sewing, Claymation Magic, Survivor, Mad Scientists Workshop, Shakespear,

and a lot more.  Stop by Town Hall to get more information or call 949 216-9700. 

Church Programs

Looking for a faith based experience for your kids this summer ?  Most houses of worship in the Rancho offer summer programs for kids on a weekly, full week, or evening basis.  Call your preferred house of worship and ask for details on programs they may be offering.

We’ve got to admit, when summer vacation arrives, Rancho Santa Margarita has a lot of fun activities.  Be sure to check out some of these in the upcoming weeks:

Taste of Rancho - June 6, 4 - 9 PM Held in Central Park, behind City Hall, local restaurants will provide samples of there menus at reasonable prices.  You may also visit the beer and wine tasting garden.

Summer Concerts  In Central Park 6-8 PM

July 12  Rock to the tribute band for Bruce Springsteen. 

July 19  Hello Cleveland: A rock and dance band with a wide range of music offerings

July 26  Stone Soul: performing classic 60’s soul and Motown music

August 2  Hot August Night - a tribute to Neil Diamond with his classics

August 9  Swing Shift - performing great dance and romance tunes

August 16 Neon Nation - focused on the 80’s experience

Starr Ranch Summer Junior Biologists

Multiple sessions are offered in June and July will acquaint kids with the scientific study of wild animals and their habitats.  For information call 949 858-0309.

Summer Camps at the Community Center

There is no need for your kids to sit home in front of the TV.  Let them stretch their experiences with summer camps in town center.  Camps include Engineering with Legos, Dnace and Cheer, Sewing, Claymation Magic, Survivor, Mad Scientists Workshop, Shakespear,

and a lot more.  Stop by Town Hall to get more information or call 949 216-9700. 

Church Programs

Looking for a faith based experience for your kids this summer ?  Most houses of worship in the Rancho offer summer programs for kids on a weekly, full week, or evening basis.  Call your preferred house of worship and ask for details on programs they may be offering.

When I first came to the Saddleback Valley in 1973, I heard about this rustic restaurant hidden in Trabuco Canyon.  It was several years before I tried it, but in several return visits I’ve never been disappointed.

The Trabuco Oaks Steakhouse was started in 1968 by the Sherod family.  It was originally a snack bar serving the campers at O’Neill Regional Park.  Soon they decided to serve dinner, so they stayed with a traditional steak and potatoes offering.

Now this place is rustic.  You may share your table with a tree, and I wouldn’t be surprised to see some of the natural residents hanging out in the parking lot sometimes.  Your memory will be of the mesquite grilled steaks, which are always carefully selected, and cooked to perfection over natural coals. 

Don’t dress up for this dinner unless you plan to donate your tie ( which will be cut off at the entrance ) to the hundreds hanging from the ceiling.  You’ll also be able to do plenty of networking without your smartphone, twitter, or facebook accounts.  The walls are papered with thousands of business cards of visitors from all over the world.

For a great treat, you should pay the Trabuco Oaks Steakhouse a visit.  It is a unique experience.  Check ahead, though.  Call them at 949 586-0722 for reservations.  They may be out of the way, tucked behind the general store and across from Trabuco Canyon Elementary School, but they are definitely popular.  You can also check out more at their website, www.trabucooakssteakhouse.com.

I’m often asked by visitors to Open Houses if they should move, or expand their current home.  Of course, as a real estate agent, getting a commission for helping them find a new home, and one for selling their current residence, helps me support the economy.  However, that is not always the best piece of advice.

When someone asks if they should consider an addition, it is pretty clear they are attached to their home, and probably the neighborhood.  My first questions are about their current house, and their relationship with the neighbors.  If there is a strong bond, then expanding the house, within reason, is probably a more pleasing option.

Of course, you can overbuild for a neighborhood.  If you have homes that do not exceed 2000 square feet in size, and suddenly you expand to 4500 square feet, you may never recoup the expense.  Usually people only need one or two more rooms, or larger rooms, or an additional bathroom, and these are not excessive. 

Cost can be a big factor.  It is not just the price of the house that is important. Check the taxes.  In California, value is based on the purchase price of the property, and you may move into a newer area that has Mello Roos assessments.  So, you could have a current tax bill of $ 1500 / year and move to a slightly larger home and face a tax bill of $ 10,000 / year.  ( Always have your agent check the projected tax bill based on the sale price, not the current tax rate of the owner ).  You may also have association fees.  Your new purchase may have higher payments, plus there are the costs of getting the loan, the sale of your home, and fees associated with moving.

Your current home may be your castle, and it has been molded to your way of living.  A new home will require changes to accomodate your family.  Do you have the energy for the work ?

Of course, you may have postponed moving for a long time, and now you simply need a new home.  In that case, this is a good time to make that purchase.  Interest rates remain relatively low, prices are down, and deals are awaiting you. 

Finally, if you are concerned about the fact your home will net less now than two years ago, keep in mind your new home will cost less than two years ago.  The relative value should remain the same, but the lower prices do mean lower tax assessments.

If you have questions, please call me direct, toll free, at 800 504-6787.  I’d love to speak with you about your opportunities.

Welcome to Tim’s home tour of your house.  If you have decided to sell it, then you want it to appeal to everyone who drops in, even if it is beyond their price range.  Visitors have friends who might also be in the market, and you want them to remember your home.  Here is a quick tour guide for what you need to do so your home is ready to show.

Curb Appeal  The first thing a potential buyer will see is the front of your property.  They might also look through the gates, because the yard means a lot.  If you have a lawn, cut it and trim the edges.  Flower beds ?  Clear out the weeds, prune the bushes, and scrape the soil.  Put some fertilizer down, water it in, and then put down mulch or colored bark.  If there is dirt on the house, or trim, wash it off.  Pressure washers do a much better job then a jet nozzle on your hose.  If the paint is peeling, sand and touch up.  If the first impression is bad, the potential buyer may never look inside.

Prepare a bright outlook  Dirty windows give the impression of a dirty house.  Make sure the windows are all washed, and the views are stunning.  This means you need to cut back any tree limbs or bushes blocking the windows.  Your backyard should have great appeal.  Use the same principles as the front yard.

Clean your countertops  It is so easy to wash down your sinks and counter tops.  If the grout is badly stained, try a special clear to make it shine.  Even if the counters are outdated, clean they look much better.  Also, put away the clutter.  Don’t leave out the dirty or drying dishes.  Wash them and get them back where they belong.  Put food away in the pantry.

Clean your cabinets  If you have a buildup of grundge, people may wrongly assume your cabinets need to be replaced.  For natural wood cabinets, clean them with products designed for the task, and then use an orange or lemon oil to make them shine.  For white cabinets, clean them with a very mild soapy solution.  Your cabinets make a very important impression.

Make the Beds  Your bedrooms will look great with the beds made.  If people see covers on the floor, they wonder what other maintenance has been left undone.

Less is more  Its your home, and you have all your memories and collectibles on display.  However visitors see all your stuff and visually it shrinks the room size.  Look at some magazines on home makeovers, or visit some model homes, and see just how simple they keep the presentation.  Go home and do the same.

Use gentle air freshners  Having a pleasant, natural, smell in your house is great.  However, if the deodorizer is too powerful, people will wonder what bad smells you are trying to cover up.

Don’t hide the defects  You want to fix the errors.  An inspector will find any problems and the buyer will want the repairs made before they take possession.  If you have a defect, get in a qualified person to repair it.  If you are waiting for repairs, put a little sign on the area saying “Our booboo will be fixed next Tuesday by a professional”.  People will appreciate full disclosure.  So will you when there are no surprises after the sale.

Do something to get them to stay a few extra minutes  Put out some cookies and lemonade, or have a special event on the TV.  Anything you do that attracts a buyer’s attention will make them more likely to take a second look.

Light up the dark spaces  You can’t like what you can’t see.  Make sure your curtains are pulled back to allow ample natural lighting.  If that is not available, turn on the lights.  People often keep laundry rooms dark, but they are very important to buyers.  Don’t make them seek the switch … leave it on.

If you would like a personal analysis of your home, and how it can best be displayed for appeal, give Tim a call.  Its toll free, and there is no obligation … but of course he would love to be your agent when you are ready to sell your home.  Call toll free 800 504-6787

Housing prices have fallen and sales are up.  Yes, there are loans available for those with good credit, there are affordable homes, and buyers are not only looking, but they are making committments.

The first step in the process is to secure a loan commitment.  In the past, people called a "finance person" who said "no problem, you’re qualified."  Don’t waste your time with a quick approval because you might find the house you love, and then hear the frustrating words "Oh, we can’t actually finance that deal."  Sit down with a loan agent who will take the time to review your full profile, and then show you what is available.  Once you know what you can actually afford, its time to go shopping.

In the foothill communities of Ladera Ranch, Rancho Santa Margarita, Trabuco Canyon, Coto de Caza, Mission Viejo, and Lake Forest, there are many great opportunities. Currently, there are 124 properties owned by the bank, 24 more in the foreclosure process, 83 more that have received a notice of default, and 583 listed as short sales.  All of these properties are selling for prices significantly below their peak value just two short years ago.

Often people hear about "distressed properties" ( those in financial difficulty ) and think they are run down, with lots of needed costly repairs.  Sure that occurs with some homes, but the vast majority of homes in this community are relatively new, often with beautiful upgrades, lush landscaping, in fantastic neighborhoods.  The only problem is that the owner had a change in their financial circumstances and could no longer afford the house.  Often these are properties that were dearly loved, and reflect a true pride of ownership.

Would you like to know more specifics ?  Give me a call and lets check it out to see if there is a property available that is the right fit for you.  There is no charge, no obligation, but I’d love to be your agent of choice as you move forward in your home search.  Call me toll free at 800 504-6787.

Tim