As an experienced Real Estate Professional, I want to advise you to tread carefully when it comes to foreclosures—they might not be quite the bargain you expect. Here are some important facts you need to know before venturing out into the foreclosure market:

- Fountain Valley Homeowners faced with foreclosure are understandably stressed and resentful, which can often lead to neglecting routine maintenance on a home. Sometimes, even deliberate damage is done. Assessing the home’s condition, therefore, is a must.

- Foreclosure properties have often been vacant for an extended period of time. Look for problems caused by damp conditions, such as mold.

- Get a thorough home inspection before bidding on the property. Once the damage/disrepair of the home is assessed, factor this in when bidding on the home.

- Contact us, we are well steeped in the local communities of Fountain Valley and can provide information about pre-foreclosure properties, that is, homes that have been scheduled for foreclosure but have not yet gone to auction or been sold off. These homes need to be sold quickly as owners are trying to avoid foreclosure and its impact on their credit.

While buying a foreclosure property takes patience and research, the results can be well worth your time and effort. For more information, please e-mail me, and please pass this on to anyone you know who might be interested in exploring a foreclosure purchase.

Condominium homes have always been, and will likely always be, an efficient and economical route to becoming a first-time homeowner. They can offer the comfort, prestige, and even luxury appointments that apartment living may lack, often at a cost that is not much different than rent.

However, not all condominiums are the same, however, so make sure you ask your Real Estate Agent the following four questions before you buy:

What will you own? Read the bylaws and be sure you understand what you will be responsible for and what belongs to the condo association. Will you own the boat dock at the back of your unit? Can you elect to build a spa on your patio? Generally, unit owners own and are responsible for the interior of their condos, while costs for outside maintenance including common areas and sewer lines are the association’s responsibility.

Who lives there? Are the majority of residents, owners or renters? Owners generally take more interest in proper maintenance and are more willing than renters to serve on the association board and enforce complex rules and regulations–including the regular collection of homeowner dues.

How effective is the homeowner’s association? Do they have legal counsel, reasonable funds and a capable, caring volunteer board? One way to judge is to check with residents about restrictions, oversight and timeliness of repairs and upgrades. Another is to take a hard look at the grounds and be wary of signs of neglect.

What about special assessments? The association should have the power to special assess for needed, one-time large expenditures. Otherwise, things that need to be done may never get done at all, leaving the complex vulnerable to disrepair and lowered property values.

Don’t miss this great opportunity to become a homeowner or to downsize by buying a condo. Please e-mail me for more tips on buying a condo and feel free to forward this information to any family and friends who may be in the market as well.

While many great deals exist in today’s real estate market, securing the optimal mortgage is a critical part of your home purchase decision.

I have worked with many home buyers over the years and am well versed on the factors in every mortgage loan package that will determine whether or not you can afford the house you want to buy. The most important things to take into consideration are: interest rate, points, mortgage type, closing costs and fees, and down payment and mortgage insurance. Here’s a closer look at each:

1. Interest Rate: The interest rate determines the amount of your monthly payment. Keep in mind that different lenders offer different interest rates, so it is important to shop around. Generally, a short-term or adjustable-rate loan will offer a lower interest rate because you agree to repay the lender more quickly or to pay fluctuating rates.
2. Points: Points are fees charged by the lender to originate your loan. A point equals one percent of the total mortgage amount. Lenders will charge different numbers of points for different loans, so it is important to understand how many points a lender will be charging. For example, in some cases, lenders may advertise very low interest rates, but build a high point charge into the cost of issuing the loan, making the deal less valuable than a loan at a higher interest rate.
3. Types of Mortgage Options:
   • Fixed Rate. On a fixed-rate mortgage, the interest rate does not change for the entire life of the loan.
   • Adjustable Rate. Adjustable rates, on the other hand, are interest rates that fluctuate based on market conditions. Since no one knows how the market will behave, they are riskier than fixed-rate loans. Over the life of the mortgage, you could end up paying more or less than you would have with a fixed-rate loan.
   • Balloon. The next common type of mortgage is a balloon payment loan. A balloon payment loan allows you to make relatively small monthly payments for an initial period, but requires a lump-sum payment toward the end of the term. These are risky to consider unless you are confident that you can either refinance the loan or sell the home at the end of the initial loan period.
4. Closing Costs: Closing costs and fees are additional amounts that the buyer and seller must cover during the course of the mortgage loan transaction. They include items like credit report fees, appraisal fees, title search fees and title insurance.
5. Down Payment and Mortgage Insurance: When searching for the right type of mortgage for you, the amount of your down payment, the need for private mortgage insurance (PMI) and other factors, such as whether you are a first-time home buyer, a teacher or a peace officer, will also affect your monthly mortgage payment.

A professional real estate agent or a trusted mortgage broker can help you decide what makes the best financial sense for you. Please e-mail me for more information and be sure to pass this on to others who might be in the market for a mortgage.

The number of transactions in which a home sells for less than the owner owes the bank is up 74% in the region this year, mainly due to a doubling of those so-called “short sales” in the Inland Empire, the Southern California Multiple Listing Service reported.

During the first five months of 2010, the four-county region had 12,906 short sales, up from 7,405 in the same period of 2009, SoCal MLS figures show.

Short sales are increasing as lenders become more amenable to approving deals rather than letting homes go through a costly foreclosure.

Here’s how those numbers break down in Orange, Los Angeles, Riverside and San Bernardino counties:

• Riverside County had 3,444 short sales this year, the second-highest number in the region. That’s up 116% from 2009, when the county had 1,593 short sales.
• San Bernardino County short sales increased 96.7%, to 2,089. During the first five months of 2009, the county had 1,062 short sales.
• Los Angeles County had the most short sales: 4,462, but that’s up just 55.5% from the same period in 2009, when there were 2,870 such sales.
• Orange County had the lowest percentage gain: up 54.8% to 2,911 short sales. The same time last year, O.C. had 1,880 such sales.
• Overall, the region has 29,242 distressed sales this year so far, down 24.4% from the first five months of 2009 due mainly to declining sales of bank-owned homes.
• Bank-owned home sales fell 46.1% to 17,233 this year.

Despite the doom and gloom the media portrays regarding today’s real estate market, several unique opportunities exist for home buyers, in particular, luxury home buyers.

While home prices across the country have dropped or stabilized to varying degrees, luxury home prices have been slashed, in many cases, as the market for such high-end properties has dwindled in challenging economic times. This presents a great opportunity, for those who have the financial resources, to purchase a luxury home that might have been completely out of their range six years ago.

Purchasing a luxury property, however, is unlike a standard home purchase. I advise all my luxury-home clients to consider the following before embarking on their search:

1. Weigh the finances carefully.
Even if you’re ready to pay cash for your luxury home, you still want to ensure you’re getting the best possible value and potential return on investment from your home purchase. Make sure you truly have the financial wherewithal to remain in the home as long as you’d like. Consider the stability and growth potential of your future income before moving forward.

2. Have your documentation in order.
Many luxury home buyers derive their net worth from a variety of sources and investments. Given the high-end purchase price of a luxury home, along with today’s unstable economic climate, prequalification is often necessary when it comes to luxury purchases.

3.Investigate alternative search methods.
The best luxury property deals might not be found through traditional real estate search engines but rather through word of mouth. Make sure you’re working with a professional real estate agent who is well connected and networked in the communities your are considering

4. Seeing is believing.
Expansive square footage, sprawling property, and a bevy of incredible views often make luxury homes difficult to completely capture in photos, videos or virtual tours. A visit in person is an absolute must to make sure you’re not missing any potential details and, conversely, to make sure the property lives up to its image.

5.Consider the future.
Your luxury home investment needs to be carefully considered for the future, in particular your expectations in terms of your return on investment. Most luxury home buyers are buying a lifestyle and don’t intend on flipping their home anytime soon. Given the volatility that still exists in today’s market, make sure you’re not headed into your luxury purchase with unrealistic thoughts of financial gain but rather to enjoy a spectacular home for many years to come.

I would be happy to share more insights and strategies for buying a luxury home. Please feel free to contact me for further information. I also encourage you to forward this email to any family and friends who might also be considering a luxury purchase.

Some are behind in their payments, or soon to be late.  Some have tried to work out a loan modification with their lender and were declined, and some homeowners simply want to get from under the property, but don’t want a foreclosure or possibly face bankruptcy.

Avoid a foreclosure on your record.  If you have received a notice of default, or your home is in foreclosure status, it is not too late to take the necessary steps that will help you in making the best decision out of a difficult situation.

Did you know that mortgage lenders encourage Short Sales? Homeowners have the need and the right to “recover” and move on.  A short sale allows you to do this, and to remain in control.  As the homeowner, you make the decision to sell.  You take charge of when you move, not the bank forcing it. You can sell your home and owe nothing to the bank.

As a Real Estate Agent and Certified Pre-Foreclosure Specialist, I focus on how I can help you and homeowners like yourself to make informative decisions based on the options available to you.

You deserve to know your options that have been made available to you prior to facing foreclosure. You can avoid having a foreclosure on your record, and look forward to a new beginning.

There are many questions you will want answers to.  If you would like more information on short sales and other resolutions, I would love to meet with you.  Please call or email to schedule a free confidential appointment.

If you are ready to move on, and start a new chapter in your life, please call or email.  There is no cost, no fee, and no obligation.  Call now for your free confidential consultation.

DeAnna Rehnert
Real Estate Agent and Certified Pre foreclosure Specialist
Star Real Estate
Lic: 01269974
(714) 815-6215
Email: deanna@deannarehnert.com
http://avoidforeclosure.deannarehnert.com

If you’re looking to sell or refinance your home, you know that a home appraisal is a necessary step in the process. While the value of your home may not be what it once was, it is important for homeowners to be realistic when it comes to getting their home appraised.

As a member of the Top 5 in Real Estate Network®, I know how vital it is to list your home at the right price. Price is, after all, only a part of marketing…but it is crucial, and having an appraisal done is the first step toward making the right pricing decision.

Here are 11 ways to prepare for a home appraisal:

1. The appraiser will need approximately 30 minutes to one hour to complete the inspection phase of the appraisal process, which includes: exterior photos of the front and rear of the home and a photo of the street in front of the property; measurements of the exterior of the home, garage and any outbuildings; a walk-through inspection of all rooms and levels of the interior of the home, including the basement.
2. Get organized. Put together a checklist that will help you get ready for your appraisal.
3. Be flexible when scheduling the appointment.
4. Have a copy of your home’s blueprint to help verify measurements and lot size.
5. Provide a list of improvements made to the property since the purchase. Improvements that should be noted include adding a pool, patio, updating your kitchen or bathroom, and any room additions, etc.
6. Allow your appraiser access to the entire property, including access to any crawl space or attic areas.
7. Keep in mind that a clean home makes a good impression. Be sure to trim the lawn, clean the pool and garage, repair cracked windows or torn screens, check for leaky faucets and secure gutters and down spouts before your appraisal.
8. Point out any amenities that may not be obvious to the appraiser: sprinkler systems, patios, pools, security systems, built-in pool vacuum, etc.
9. Provide a copy of last year’s tax assessment information.
10. Know what year the house was built and when improvements were made.
11. The first thing appraisers look for is comparables, so be prepared and have a list of recent sales of similar properties in the immediate neighborhood.

Following these steps will go a long way toward making the home appraisal process a bit easier.

For more information on home appraisals and preparing your home for sale, please e-mail me at deannarehnert@aol.com —and please feel free to forward these tips to any family and friends with a home sale in their future.

What You Need to Know Before Starting Your Home Search

With historically low interest rates persevering and prices starting to creep back up, more and more renters are grappling with the question of whether to buy now or keep renting.

Based on the countless clients I have helped buy their first home, I can confidently tell you, yes! Now is a very opportune time to purchase your first home.

According to my colleagues in the Top 5 in Real Estate Network®, a national network of leading real estate agents, first-time home buyers across the country have taken advantage of today’s market conditions to go from renter to homeowner. That said, the ability to move into homeownership is very dependent upon the overall health of your finances. Buying a home not only takes having the necessary cash on hand for the deposit and closing costs, but also the financial wherewithal to convince a bank to lend you 80% or more of the purchase price in the form of a long-term mortgage.

Here are some other important points to be aware of before embarking on a home purchase:

1. Having good credit is all important, so put out the bucks to Fair Isaacs’ myFICO.com to get your current scores (about $16 each for reports from Equifax and TransUnion, another $15 at Experian.com). Don’t be surprised if the scores differ somewhat, and check them carefully for errors. Remember that errors must be reported to and corrected by the agencies themselves, which could take weeks or months.

2. Know what you can afford. Aim for a home that costs about two-and-a-half times your gross income – less if you have significant financial debt. In all, your monthly home payments should not exceed 36% of your gross monthly income. Getting pre-approved by a lender should be your signal to start home shopping.

3. Check your cash situation. Whether you are aiming to amass 20% of the home’s price for a conventional loan, or 3% or more for a loan from Fannie Mae, Freddie Mac, FHA or the Department of Veteran’s Affairs, you will also need to cover fees and closing costs, which can run up to 5% of the mortgage amount. First-time buyers may augment their cash by borrowing from an IRA or getting a cash gift from parents, but check with a financial advisor for amounts and tax consequences.

4. And speaking of tax consequences, remember that homeowners, unlike renters, must pay property taxes each year – and pay for any needed repairs or upgrades. Be sure to leave yourself a little financial wiggle room in order to meet these expected – and sometimes unexpected – expenses.

If you would like more information about preparing to buy a home, please e-mail me. I also invite you to forward this email to anyone else who might soon be joining the ranks of homeowner!

Top 5: First-Time Home Buyers

16827 Tin Mountain Circle, Fountain Valley, CA 92708 (MLS # S624167)

This house is fantastic! Located on a cul-de-sac street, this one story home has 2,400 sq. ft! Beautiful open floor plan with a formal living & dining room. Separate eating area with vaulted ceiling adjacent to kitchen. Remodeled kitchen with maple cabinets,custom stainless cook top and range hood, very light and bright with an extra window and pass-thru to the family room. 2 fireplaces..1 located in living room and 1 in family room. Master bedroom is large and features 2 closets, 1 is a walk-in closet and both are organized. Gorgeous remodeled master bath that features dual sinks, tub with jets, separate custom tile shower and more! Other features include some Anderson dual glaze windows,recessed lighting, inside laundry, plantation shutters, a whole house fan. Too many features to list!

Property Type(s): Single Family, Residential

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with Timothy Olivadoti (w/ DeAnna Rehnert), Star Real Estate

(view all details for MLS # S624167)

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