Real Estate in the Hermosa Beach and Redondo Beach Areas

The pricier areas will likely have more short sales show up soon. Keep several things in mind…LENDERS- Investors are bidding up the lower income properties and this may be harder for the lenders who have to get people qualified for the conforming and Jumbo loans.

Redondo Beach may have some affordable properties show up in the short sale arena.

 NEW INFORMATION:

Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days. Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities.

This is a very HOT topic. Stay tuned to know how this can help you buy or sell a home. As a CDPE specialist- (Certified Distressed Property Expert) expect to keep up on the latest breaking news.

Tis the season to be Jolly. But Fa La La- not this year. Recent “Gift Card” scam hitting the public couldn’t have come at a more powerful time. The news suggests that somehow people are able to swipe the credit card of its gift before the present is even delivered. There are dire predictions of the widespread scam and no leads at present (disclaimer here, no pun intended)  Credit gift cards are now under attack from a computer predator of some sort. Beware and avoid gift cards for the present time- the holiday season.
The safe way is just regift this year. We all have too much stuff & little cash anyway.

Good credit card fraud department:
Only this year I got a call from my credit card company and the fraud department. They knew my card was likely stolen before I did. My card was in my wallet. Someone in San Diego had made 2 cash withdrawals of 500 each in different places. I was shocked that someone could use my card when I still had it. I was also surprised they  figured it out! You may think that you are only a number to the world but by golly they knew this was Not my buying habit.Wow. The predator was someone in our nearby Arco station that put some kind of device on the atm that stole the number and the pin. This Redondo Beach Arco station bilked so much money out of our local people that the station is now closed. Within 10 days the money was returned to my account by the Bank. They never caught the criminals but they stopped that location for scam.

Gas station issue number 2

I was at a Chevron station and it said to see attendant when I put in my zip code. I started walking  toward the attendant and decided to just get gas later. I flipped around and got in my car and drove off.  Only later in the day did I realize my wallet was missing. Did I lose it? Was it stolen? I started calling the credit card companies and sure enough my wallet was taken and a credit card used. In a split second the wallet was taken and not my purse! Are we aware how close we are to people as we pump gas? I am now and was not then. The security cameras were not working either. Had I xeroxed all my credit cards in my purse front and back? Not then but when I got all the new ones I did. It will make it easier for me if it ever happens again. The good part is that I prayed for my wallet to be returned. It was a week later. The wallet and credit cards were tossed out in a parking lot of a local restaurant. A kind caller scooped them up and called me- My business card was inside. The drivers license, small amount of money and gift cards to the movies were gone but I got back all the other things I needed, like my NAR real estate card and Vons and Barnes and Noble card. I learned a valuable lesson and a nice person returned most of my wallet.
This takes me to credit ( another no pun intended) a writer for 2 amazing articles on credit cards.

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com. The November 9th article is on archive about Credit cards are not  our friend and he blames borrowers and credit card companies for the current state of disrepair- jacking up fees at will. This one basically explains the overall history in a nutshell.

Does ¢â‚¬Å“Unfair Isaac¢â‚¬Â Give Credit Where It¢â‚¬â„¢s Due?

by Nilus Mattive   06-30-09

In the Dividend Superstars issue that just went to press, I talked about FICO credit scores ¢â‚¬â€ the three-digit numbers that greatly determine how much money we can borrow, what interest rates we pay, and even how employers and landlords view us.

And I think this information is so critical to your financial life that I want to go over some of the details again here in Money and Markets today. Plus, I want to tell you why I think the system as it stands today is treating many responsible savers and borrowers unfairly in these credit-crunched times. That¢â‚¬â„¢s something I didn¢â‚¬â„¢t have room for in the latest Dividend Superstars newsletter.

So let¢â‚¬â„¢s get into it ¢â‚¬Â¦

The Basics of Credit Scores

If you¢â‚¬â„¢ve been reading my columns and issues, you know I firmly believe you should pull your credit reports from the three major reporting agencies ¢â‚¬â€ Equifax, Experian, and Transunion ¢â‚¬â€ once a year. Doing so is now completely free because of the Fair Credit Reporting Act.

You can choose to pull all three reports at one time, or space them out throughout the year so you get a frequent look into your records.

Whatever way you choose to do it, look for errors, incorrect addresses, or any suspicious activity. If you have questions or corrections, don¢â‚¬â„¢t hesitate to contact the agency. After all, your credit score affects the interest rates you pay on all kinds of loans.

To get those reports, visit www.annualcreditreport.com or call 1-877-322-8228. You can also request them by mail at: Annual Credit Report Service, P.O. Box 105281, Atlanta, GA 30348-5281.

Of course, when you pull those reports you WILL NOT see your actual credit score, which is derived from your reports.

The most commonly cited credit score number is known as your ¢â‚¬Å“FICO score,¢â‚¬Â named after the firm that created it, Fair Isaac Co. The three-digit number falls between 300 and 850, with most people falling into the 600s or 700s.

Landlords and employers use credit scores as a way to get a sense of who you are, and as I noted, a FICO score greatly affects your borrowing ability. Fair Isaac says a borrower with a 580 might pay three percentage points more for a loan than someone with a 720!

The importance of your FICO is only getting more dramatic with the ongoing credit crunch. Some mortgage lenders have even been creating additional tiers above the 740-750 level, which has typically represented the general cutoff point for their ¢â‚¬Å“best¢â‚¬Â customers.

How a FICO Score Is Calculated,
Along With Recent Important Changes ¢â‚¬Â¦

Fair Isaac¢â‚¬â„¢s website gives the following general guidelines:

• Your payment history counts for 35%. Being late on credit card balances, declaring bankruptcy, and other factors fall into this category.
• Your debt counts for another 30%. This includes your overall debt vs. credit available, the balances on individual cards, and similar factors.
• The length of credit history makes up 15%. In simple terms, the longer your credit history, the better your score will be.
• Applications for new credit contribute 10%. Whenever you go shopping for a mortgage or open a new credit card, your score can potentially suffer.

The rest of your score comes from a mix of other factors. And note that the exact algorithm behind the FICO score is a closely guarded secret that is continually being tweaked.

For example, in February of 2009 Fair Isaac made a number of important changes to the formula:

1. Only spouses and children are able to piggyback onto your cards to boost their scores.
2. Debts of less than $100 that go into collections do less damage to your score.
3. Having less available credit hurts a score more.
4. A healthy smattering of loans (i.e. student, mortgage, credit card, etc.) helps a score.
5. Closing accounts hurts a score.
6. Single negative events may have less of an effect.

So How Can You Help Your Score
(Or At Least Not Hurt It)?

Here are some of the basic steps you can take:

First, you should keep a few credit cards open for as long as possible, and with high available lines of credit even if you aren¢â‚¬â„¢t really using them all that often.

It can make sense to close a couple newer cards, especially if they levy annual fees, but be careful that you¢â‚¬â„¢ll still have a healthy amount of available credit and a long continuous history.

Cancelling credit cards might actually hurt your credit score!

And don¢â‚¬â„¢t let your few cards sit completely idle because lenders may unexpectedly close them, reduce your available credit, or stop reporting the activity to the credit agencies.

Second, you should not go around opening new cards just to get those initial 10 percent-off discounts or shopping for a home equity loan just to see what rate you can get. FICO tries to account for similar credit inquiry activity all falling within a small window (roughly 45 days) such as when you go mortgage shopping, but it still makes sense to limit your activity in this area.

Third, high balances are to be avoided. And if possible, you should spread out your activity among a few cards.

Fourth, don¢â‚¬â„¢t forget about the simple steps like consistently paying bills on time and correcting errors on your credit reports, either.

Yet All This Begs One Last Question:
Is the FICO System Even Fair in Today¢â‚¬â„¢s Environment?

Think about some of the steps I just outlined: Keep cards open that you aren¢â‚¬â„¢t really using ¢â‚¬Â¦ have a ¢â‚¬Å“healthy mix of debt¢â‚¬Â ¢â‚¬Â¦ and don¢â‚¬â„¢t shop around for loans very often.

Do those make sense to you? Do those sound like steps a conservative consumer should take?

No way!

And yet these are apparently some of the best ways to get ¢â‚¬â€ and keep ¢â‚¬â€ a top credit score.

Consider this case: A hypothetical borrower has paid cash for his house and cars. He uses just one rewards card for all his purchases and pays off the balance in full every month, though he sometimes changes what card he uses based on the best rewards program at the time. And he frequently rolls his savings into CDs with whatever bank pays the highest rates.

Now, that sounds like someone I would loan money to! I mean, the guy has no debt and makes sound financial decisions.

Yet, as far as the FICO system is concerned, he doesn¢â‚¬â„¢t have much of a credit history nor a smattering of loans. And all that credit card and CD shopping will also cause a lot of credit report pulls.

Oh, and get this: From what I¢â‚¬â„¢ve heard, the FICO system doesn¢â‚¬â„¢t recognize patterns like regularly paying off large credit card balances. So in our hypothetical example, Mr. Conservative would also show a high debt-to-available credit balance.

Now, I¢â‚¬â„¢m sure this guy would still have a very decent score. And if he¢â‚¬â„¢s cash rich and debt free, he probably wouldn¢â‚¬â„¢t give a darn what Fair Isaac¢â‚¬â„¢s system thought of him, either.

But what if he did decide to go shopping for a second home mortgage? Would the system ¢â‚¬â€ or the lenders who blindly rely on it ¢â‚¬â€ actually see him for the low-risk borrower he is?

My general impression is that FICO is best applied to the masses ¢â‚¬â€ people who live with all kinds of loans and spend the rest of their days faithfully paying off little bits here and there. And I guess that¢â‚¬â„¢s exactly who lenders want to court, too.

Still, anyone who is responsible and doesn¢â‚¬â„¢t fit ¢â‚¬Å“the mold¢â‚¬Â might be left calling FICO¢â‚¬â„¢s creator ¢â‚¬Å“Unfair Isaac¢â‚¬Â when it¢â‚¬â„¢s time to shop for a loan.

Best wishes,

Nilus

Got to love Saturday night live, because we live in California we spend about 10 times more for a house and sometimes have jobs that allow us to pay that mortgage. The Government has not really figured out the State of California and NY and a few other places don’t fit the “one size fits all ” regime of thought.

The first time home buyer credit did help one of my buyers this year! Hooray.

It was almost a miracle. Getting the right home in escrow and closing in the timeframe.  Now with the new tax credit…it could help others.

However…see if it “Fits” your income.

“The first-time homebuyer tax credit may be restricted by the taxpayer¢â‚¬â„¢s income.  The tax credit starts to phase out for an individual taxpayer with a modified adjusted gross income from $75,001 to $95,000 (or $150,001 to $170,000 for joint filers).  The tax credit is eliminated entirely if an individual¢â‚¬â„¢s modified adjusted gross income is over $95,000 (or $170,000 for joint filers).  (26 U.S.C. § 36(b)(2″

Soon I will add a page from NAR that shows the way the formula could work if you fit the income formula. Your lender and tax people will have to get involved with you to actually work out all the facts. Your realtor can help get you all you need on the house, the time frame and keep the ball in the air till your people measure your exact profile to see if it works.

 With the old saying of the pearl from a grain of sand, cloud has a silver lining, the core idea is that within what SEEMS to be the problem….is the solution.

Housing opportunity could be the best solution for our recovery. This major article outlines so many good ideas that I want to share it with you. It uses cash for clunkers concept for homes. It says 9000. is stimulated into the economy with each home purchase.(I think that is conservative in the South Bay)

Instead of stimulus to the Banks alone..it stimulates every home owner and future homeowner. The ideas are so good I hope even some of them will be put to use.

http://rismedia.com/2009-09-21/jumpstarting-job-creation-let-housing-lead-the-way/


Please forward this article on to others if you found the value I did.

Custom Content for Your Site
Major Mortgage Rates
26-Aug-09		Last
30 Year FXD		4.94%
15 Year FXD		4.74%
3/1 ARM		4.36%
5/1 ARM		4.50%
7/1 ARM		4.73%

Points from the  National Consumer Law Center in Boston

The Bank closures in Texas take our country to 81 closed banks this year. There are more coming.  Realtors are staying in close contact with lenders daily. Lenders come to our RE/MAX office every week for the overall information that we need to help our clients. Realtors share experiences on successful resources. We are a service business. Chase, Bank of America, California Funding Group are lenders that I have spoken to personally this last week.

This article is written for realtors. Homeowners need to know this also. Will you see it in plain english in the press our local papers, the LA times, NO.  It is informative. Here is the added fact..really bad behavior is going on out there now. Scamming -its like a scam-lord. Some people are pretending to be the leasing agent and take a deposit on a property they have no right to. It is forclosed and they are faking ownership. I spoke to a savvy agent who said..this…if you get a NOD notice of default. Cancel your phone. Get another phone and let your lender know it. People will be calling the old number and going over to your home..Don’t let them in, don’t discuss it with whoever shows up. Get a qualified agent and get some information that way. Otherwise…you don’t know who you are dealing with.  

here is the article 

Senate OKs Foreclosure Bill Minus Cramdown
The U.S. Senate on Wednesday approved a version of the latest foreclosure-prevention plan.

The bill shields mortgage servicers from lawsuits if they participate in federal loan modification programs, making it potentially easier for home owners with a second lien to refinance.

The bill also gives renters of foreclosed properties at least a 90-day grace period before they have to move. Plus, it modifies the Hope for Homeowners program to provide better incentives for lenders to adjust mortgages.

The bill also extends through 2013 an increase in deposit insurance by the FDIC from $100,000 to $250,000.

The Senate version of the bill didn¢â‚¬â„¢t include a provision allowing bankruptcy judges to modify primary mortgages. This cramdown legislation passed the House in March and is considered a key to the Obama administration¢â‚¬â„¢s foreclosure prevention plan. Lawmakers consider it dead in the water.

The Senate and House versions must now be reconciled before President Barack Obama can sign the bill into law.

Source: The Associated Press, Ann Flaherty (05/06/2009)

REO Bank Owned open houses attract buyers. People who stop by are doing it as First time home buyers, investments,  to help a family member or friend. March 2009 sales were 41% first time home buyers. Banks are lending. South Bay properties in Redondo Beach, Torrance, Palos Verdes, Manhattan Beach and Hermosa Beach actually have some REO listings and…they sell quickly. At my open  houses I post a list of the sold foreclosed properties in each area over the past year. I post all the REO active listings in the local cities. People want to be on the list to receive emails of every bank owned property and they also want to know what is comparable.

I was at a Tom Ferry Focus training event in Long Beach this week and we talked about the growing numbers of regular homes sold, selling and pending sales. One thousand agents all over the countryin the room were selling. Last year out of 50 Thousand California licenced real estate agents only 578 sold over 6 homes.  We talked about working harder and working smarter.  It means getting people qualified by a lender to buy. Most people stopping at the open houses have to get qualified. That is why this website has a wholesale mortgage page. Check it out. When buyers know what their price range is they are ready to shop.  Buyers they need to know they have competition too. Be ready to lose one or more if you see a good value and expect to pay less than asking. Local surrounding areas under 400K are getting multiple offers. Spring 2009 has people out there shopping. Buyers are informed and ready.

What is this? With the whole world looking for a good deal the mortgage industry created one too. Its the red tag sale, Presidents day, Mothers day, 4th of July all rolled into one consistant sale… WHOLESALE.

Too good to believe? Too good to be true?  Check it out. I have a whole page devoted to it. Look across the top of the list of pages and go see it for yourself.

 I now have 3 in escrow using this wholesale mortgage and it is working out to save so much in costs…closing costs. On a 600K home one lender fees tucked into the total  closing costs looked like 14K. The wholesale lender fees tucked into total closing costs for the buyer is 9K.  Thats the truth the only difference was in the fee of the loan, all the other closing costs numbers remained the same.

Feel free to talk to me about it. The lender is working on my South Bay purchases for buyers in Torrance and Gardena, as well as Los Angeles. One is a bank owned, the other 2 are short sales. It makes no difference even a normal sale will do. I haven’t seen too many normal sales…lately. Have you? I love your questions and comments.  Everyone deserves a pot of gold at the end of the rainbow. This is ours.

http://www.youtube.com/watch?v=JKEUIhWgIGY

My yoga teacher says its Alan Greenspan’s  fault. During the Clinton era he should have raised the interest rate as the economy grew. That would have stopped the bubble. He wanted things to look good and get re-elected.  Bush kept Greenspan also.

We all know economy is a combination of things. We can blame the Banks, the greed wherever it lives in politics, in the workplace, wherever.  What if it is true? What if it is not true?  Every person is trying to solve this puzzle.

I think the inventive talents in our world will lead us out of this one. What has history said about it? Build a better tomorrow. Transportation was the ticket to employment and growth. Energy ideas for transportation is the ticket yet to be played for real. Just watch the movie NETWORK. As soon as the big guys own the alternative resources we will get to have them.

We need a Hero. Actually we need the hero inside each of us to step out and lead with grace. We start with a better word than blame, and move on in this changing world.