FOUST Team in the news lately!

A strong web presence continues to pay off as we've:

-Had quite a few of some of our clients homes go from active to sold this week plus

-Gained an opportunity to help some of the home buying public

First off, to follow up on a previous post we have had the LA Times publish one of our listings in a section of their paper call "On the Market". The writer, Lauren Beale, used a house we have listed at Morningside in Whittier as a showcase for what modern buyers can get for around $500,000. You can see this story here.

Second, A recent article that we have authored just appeared on Realty Times, Yahoo Real Estate, and quite a few places in the blog sphere. We don't want to directly link back to this article but it is easily found by doing a quick Google search with the keywords "Mello-Roos on Realty Times" Anybody looking to buy a home in South Orange County, or anywhere where there is a lot of construction newer than 1994, should definitely read this.

Lastly, Look for us again to appear in an upcoming section of the LA Times Career Builder Section where we will be answering some questions about first time home buying and the foreclosure market. It is scheduled to print Friday July 17th.

We're Looking For a Few Good Sellers

Believe it or not, even during this economy, we've got quite a few first time homebuyers who:

- have been personally qualified by us and our lender and
- who we can vouch for as being great people
- are frustrated with bank owned bidding wars
- and finally who are motivated and willing to pay market price for a home in the next 2 months

Here is what we are looking for:

Buyer #1 - FHA buyer approved for loan up to $300,000. Young couple willing to do major repairs looking for:

2-3 Bedroom Home in Fullerton, any condition, most neighborhoods, up to $315,000


Buyer #2 - 20% downpayment buyer approved for loan up to $380,000. Young couple willing to do some repairs looking for:

3-4 Bedroom Home in Fullerton, over 1200 sq feet, any condition, up to $380,000


Buyer #3

NOW A HOMEOWNER, CONGRATULATIONS ANDREA!!

Buyer #4 - 10% downpayment buyer approved for loan up to $300,000. Young couple looking for:

2-3 Bedroom Condo in NOC, over 900 sq feet, nicer community, up to $300,000 (10% down)

If you have a home that you are interested in possibly selling that might fit the above criteria, please let us know as soon as possible. This list is by no means the only buyers we have, it is merely representative of our 4 most active, motivated and qualified home buyers we are currently working with. You can rest assured that our buyers will not waste your time with unrealistic offers, inability to get a loan, or a lack of motivation. Thank you for your continued support.

If you have a home that doesn't fit the above description, you are considering selling it, and you'd like us to first check and see if we have a buyer for you, please feel free to call as well.

*To protect privacy, people pictured above are actors used for advertising purposes. The actual buyers do exist but prefer not to be pictured.

FOUST Team Listing Will Be Featured in LA Times

Just a quick heads up that one of our listings in the city of Whittier, CA will soon be featured in an upcoming article on real estate in the area. The listing is this 3 bedroom 2 bath 1800 square foot home in the popular Morningside community.





The author of the story should be Lauren Beale and we imagine the spotlight section should take place in the real estate section.



This is just another example of how a strong web presence pays big dividends in the current real estate market.

We'd like to thank the LA Times for featuring us and invite all interested parties to check out our Whittier real estate and Whittier homes for sale pages.

Sorrento Hills Neighborhood Review Now Up!

Here is the link to the Fullerton's Sorrento Hills Neighborhood Review and the Sorrento Hills Homes For Sale Pages.

And while we're at it, check out this great house for sale in Sorrento Hills -Fullerton, CA that we just had a price reduction on.

Let us know if you have any questions about this or any other piece of real estate.

If You Think You’re Facing Foreclosure, You Need To Understand the New California Law.

As a California real estate professional, my clients have been asking me quite a few questions about the new law that will take effect on May 21, 2009 involving extending foreclosure periods by 90 days.

Instead of explaining all of the legal mumbo-jumbo (and believe me there is a lot of it); let me take a few moments to explain the new law in easy-to-understand terms.

The first and most important thing to do if you’re facing a possible foreclosure situation is to check with your mortgage lender. The new law (extension of time) does not apply to lenders that currently offer a loan modification program.

The new law only applies to owner-occupied homes only where the first loan was recorded between January 1, 2003 and January 1, 2008. The new law will extend the time period before the filing of notice of sale by 90 days beyond the current three month period following the filing of the original notice of default.

In order for your lender to qualify for an exemption from this new law, your lender must offer a comprehensive loan modification program that includes the following features:

1. The program is intended to keep borrowers (you) in your home when the anticipated recovery period under a loan modification exceeds the recovery period through foreclosure on a net value present basis.

2. It targets a debt-to-income ratio of 38% or less.

3. It includes a combination of the following features:

· An interest rate reduction for at least five years
· An extension of loan term to no more than 40 years
· A deferral of some portion of the unpaid principal balance
· A reduction in principal
· Full compliance with a federally mandated loan modification program
· Seeks to achieve long-term sustainability for the borrower (you) when determining a loan modification solution.

Additionally it’s very important to understand that the following loans are exempted from the 90 day extension under the new law.

1. A loan made, purchased, serviced or used as collateral by a California State or local housing finance agency.

2. Loans where the borrower (you) has surrendered the property, contracted with an organization regarding how to extend the foreclosure process, or filed for bankruptcy and the case has not been closed or dismissed.

All of the provisions of this new law will be repealed on January 1st, 2011 unless the California Legislature extends them.

To learn more about the law or other real estate issues visit http://www.foustonline.com/
If you’re thinking of foreclosing or doing a short sale, please contact us. We will be glad to spend time answering all of your questions and helping you find the critical resources you will need during this challenging time.

Real Estate Market Update - Some Markets Red Hot Others Ice Cold

It's April 15th and the first thing we'd like to do is have you read no further and go pay your taxes if you have not already. Now then , let's get to the fun stuff. The real estate market across Los Angeles and Orange Counties seems to be a hot topic and nobody can seem to get a straight answer when it comes to its' condition. Here's what we can tell you from our "boots on the ground" experience.


Hot Markets

Entry level single family residences - Without a doubt the hottest selling market in the area is that for entry level homes. In particular, single family residences priced between $250,000 and $350,000. This is the same market that was the hottest selling during the boom days and the same that has been hit hardest by foreclosure. Most of the property in this price range is some sort of distress sale, whether it be bank owned or short sale. Homes priced well for their features are seeing multiple offers, overbids, and short market times. These homes are selling so well because of three factors:

1. The banks are pricing them ultra aggressively.
2. The monthly payments on these homes often makes more sense than renting so we're seeing a boom of first time buyers. With interest rates around 4.5-4.75% and the potential for $8,000 in tax credit, and homes selling for nearly half price, this is no surprise.
3. Investors (not to be confused with speculators) are reappearing in the market to snatch these homes up with cash-heavy offers and turn them into income-producing rental properties.

Any Lower Priced Neighborhood - From Santa Ana to Long Beach, Downey to Anaheim, the story remains the same. If the neighborhood is seen as "affordable", and had substantial sales activity due to sub prime mortgages, it is sure to again be a hot-selling neighborhood. Only now, the prices are nearly half of what they were previously selling at.

Luxury Real Estate - Guess it goes without saying that those who are able to afford estate property aren't terribly concerned with the absence of 100% financing. Low interest rates and realistic pricing on these homes have helped the luxury market to see an increase in sales activity. Again, it pales in comparison to the entry level market pace but its still a better market than many think.




Cold Markets

Mid-Range Housing - While it may not be seeing the largest amount of price drops, the coldest market has to be homes falling somewhere between upper-end and entry-level. There just is not a lot of action on these homes for a few reasons:

1. There are less foreclosures in this price range; therefore, less motivated sellers. Despite possibly being "upside down", owners are looking to hold on to their homes and ride out the market cycle. (Something many owners in the entry-level market are not able to do.)


2. This segment of the market relies on people in the entry-level market moving up to the mid-range in order to spur home sales. Without a large pool of owners in the entry-level market with equity AND the need to sell, the mid level just isn't seeing many of the step-up buyers.


3. Lateral moving buyers (or buyers moving from one house to a similar priced house, just in a different location) are the majority of the buyers in this market. The problem is that these people will face the same issues with sale; lower prices and slower sale times.

The bottom line for this market is motivation. If you are motivated to sell (and by this we mean ready to price very competitively) the job can get done. If you are looking to buy and sell in this market, the current market may not matter as much as evidenced by our 10% sales theory.

Many factors such as location, updates, and overall condition of the property are really helping to keep some neighborhoods and houses from being on the market for too long. We've had some very recent success in this market, something we attribute to our unique marketing plan and maybe more importantly, our clients willingness to trust our judgement and sincerely listen to our recommendations.

Who Is Buying?

Investors and first time buyers for the most part.


Who Is Selling?

Banks with their REO entry-level homes priced under market to induce a bidding war. Still, homes in all market segments are still selling with the right combination of price and marketing.


Loan Market

Wow! We're seeing loan rates hit the mid to high 4% range these days. FHA loans for first time buyers are also still available, requiring only 3-5% down payment, and following suit with interest rates under 5%. And yes, this is for a 30 year fixed rate. Buyers should expect to be asked for full documentation of income, credit, and proof of funds for down payment.

Even if your not in the market to buy a home, you may want to consider refinancing if you have some equity . If you haven't refinanced your house in the last 4 months, you need to call us for a recommendation to some loan officers who can save you some money with these types of rates.


New Laws and Trends

The Stimulus Package - Already taking affect as it relates to first time buyers. First time buyers will be receiving a tax credit, not just a deduction, for up to $8000 if they purchase a home this year. For more information please see our guide to understanding the stimulus package.

Foreclosure Time Frames Extended in CA - Assembly Bill 7 (ABX27) has extended foreclosure proceedings an extra 90 days from the original 3 months needed from the time a notice of default was filed until the time they could post a trustee sale. The idea is to let many homeowners who are in trouble have time to reinstate the loan or consummate a short sale. We are seeing this law pan out by limiting the amount of bank owned listing coming to market the last two months. We are unsure whether this will continue to slow the flow of REO listings and increase the amount of approved short pay sales, but do know that it will at least give troubled owners a chance to keep their house or avoid foreclosure.



FOUST Team News

We're excited to announce that we just had one of our articles published by not only Realty Times, a great real estate news publication, but also Yahoo Real Estate. If you'd like to check it out just do a quick Google search with keywords "Todd Foust on Yahoo Real Estate" and it should be your first organic result.

Thank you for reading our real estate update, if you found it useful feel free to bookmark it, send it to a friend, save it as a favorite, or subscribe to our blogs RSS feed for automated updates. If you have any questions feel free to contact us at info@FOUSTonline.com.

First-time Buyer's Guide to Understanding the Federal Income Tax Credit

Are you afraid to buy a home now worrying that you might not be able to afford it because of the crash in our economy? No need to worry! The IRS new stimulus plan might help. This policy, effective for purchases on or after January 1, 2009 and before December 1, 2009 has become a hot topic.

Let us make it simple for you...It is a great time to buy a home now! Not only are interest rates lower than 5%, there is also an offer of tax credits. $8,000 is the maximum amount a homeowner can get for credit, no matter how much the purchased home may be. We know that last summer, the refundable credit required a repayment. But the new stimulus plan promises nothing but a refund. There is no repayment by the homebuyer whatsoever. It is just pure heavenly income tax credit.

And who may be qualified for this income tax credit?

• Anyone who purchases a single-family residence, as long as it is the homebuyer's principal residence. This includes condominiums, townhouses, or a co-op.
• First-time homebuyers. Meaning, those who have not owned a home in the 3 years before purchasing an eligible property.
• A homebuyer who utilizes revenue bond financing.
• For a full refund in tax credits, the homebuyer may have a total annual taxable income of no more than $75,000 ($150,000 on a joint return).
• For a reduced tax credit, the homebuyer may have a total adjusted income up to $95,000 ($170,000 on a joint return) or those who qualify as a first-time homebuyer. Also for the first-time homebuyers, if the $8,000 is greater than the tax you owe, then you will get a refund check for the difference.
• A home buyer meeting the basic requirements who purchase before December 1, 2009
  

Obviously, there are many homebuyers who will benefit from these tax advantages when buying real estate in 2009. We advise prospective home buyers to talk with their tax professional first and then see us about finding a home before the deadline. In fact, this new home buying incentive may already be taking effect. According to the California Association of Realtors, buyers took advantage of a 41 percent decline in the median price of an existing home as California home sales doubled in January from a year earlier. We hope this guide will help those considering the purchase of a home in 2009. Please contact us with any further questions.