You clung to your Laguna Beach home like glue. No way were you leaving the place you so dearly cherished. But the stack of delinquent mortgage payments got too heavy. Pushed you straight through a trap door. Now you’re in the pit. The mortgage pit. Debt collectors are hissing like snakes. Foreclosure fiends are clawing at you. How will you get out of this trap?

Luckily, there’s an escape route. It’s called short sale – a program that lets you sell your home for less than the total amount owed. Protects you from the hissing debt collectors and foreclosure fiends. Frees you from the pit. Get ready!

Launching Your Escape

Remember, a short sale isn’t a magic amulet. Plan on digging in your heels and expending much personal energy. You’ll begin with three documents, all of which should be signed and dated.

• A financial worksheet listing all of your monthly expenses. The more, the merrier.
• A hardship letter explaining why you got behind. You’re making your case here, so let the details flow.
• A letter authorizing your Realtor to access certain account information. The letter should include the last 4 digits of the borrower’s social security number, the complete account number, and property address.

What Else You Should Know

• The clock is ticking, so dawdle at your own risk. If the short sale doesn’t close within 30 days, chances are you’ll need to start the approval process over. Now wouldn’t that be a hoot.
• Send all inquiries, (and if necessary, bribes), to the assigned negotiator. The identity of this individual will be revealed during the introduction call.
• A short sale is never an inside job. This means, the property may not be purchased by anyone with close ties to the seller. This includes but is not limited to family members, friends, neighbors, personal trainers, and bookies.
• In certain cases, investors and mortgage insurance companies require lenders to sign an unsecured note for part or all of the difference between sale proceeds and the total amount due. This information is specified as part of any response to a short sale offer.

Well there it is. You see? There is an escape from the mortgage pit. And if you’re considering a short sale for your Laguna Beach home, I want to make sure you’re good and prepared for the journey.  I’ll make certain you get started on the right track. And stay on the right track. As an experienced professional well-acquainted with this prime beachfront community, I can answer all of your questions and help you discover the numerous opportunities the Laguna Beach Real Estate market has to offer.

Feel free to contact me at 949.922.8490 or hillary@thecoastalpropertyexperts.com.

Until next time, keep it classy, Laguna.

You made that mortgage payment again! Took that hard-earned greenery from your bank account and whisked it to your friendly lending institution. Another mortgage payment for your beautiful Laguna Beach home is successfully in the books! Congratulations! You’ve purchased one more month of home ownership.

Then about a week or so later you get the call. It is from your friendly bank rep. “Where’s our money,” probes Mr. or Ms. Rep, ever so politely. “What are you talking about? I sent it about a week ago.” You tell them where it was sent. “Uh…That’s not our address,” corrects the rep. “It’s not even us.”

“But I got this letter. It told me to forward my mortgage payments to this new company. Said my loan was sold to them.”  Sympathetically, the rep tells you the letter was bogus. The loan was not sold. Realization crashes down on you. Sorry, Charlie. You’re the victim of the latest mortgage scam.

Incredibly, scenarios just like this are taking place not only in Laguna Beach or Orange County, but nationwide. And it is happening more and more often.  Basically, a con artist fires off an ‘official’-looking letter to an unwitting homeowner. The letter instructs the wide-eyed recipient to start sending their mortgage payments to a new company. Supposedly, this second lender has taken over the management of your loan. Just one problem — the new company is 100% fictitious; a fraud.

Borrowers who fall for this scam typically relinquish a few unintended donations before they realize a big clump of wool has been yanked over their eyes. By then, they’re one or more payments in arrears. And the real lender is stepping up the phone calls.

These skillful con artists are banking on a single fact — most borrowers have no idea what to expect when a loan is sold legitimately to another institution. But, of course, you won’t be one of the people in the dark. Why? Because we’re offering you, free of charge – Scam Prevention 101. Pay attention, or pay the price.

Legally, you must receive two letters when there’s a management transfer. The first from the original loan administrator such as Bank of America or Wells Fargo. This tells you about the transfer, as well as where and when to re-direct your mortgage payments. About a week later, you’ll receive a second letter. The sender is none other than the new management company. They’re giving you a big welcome, as well as all the loan details you ever could want to know. They might even generously pack in a few payment coupons and company envelopes, just so you don’t get stuck paying for these items. Remember, one letter doesn’t count. If you don’t get a pair, become Sherlock Holmes and investigate.

Make sure both letters include your loan number. If this crucial info isn’t supplied, or if there’s a mismatch, call your original servicer for an explanation.

Even if everything checks out, contact the original servicer anyway. You just never know.

Congratulations! You’ve passed Scam Protection 101!

But we’re still available for questions, so feel free to reach out to us. After all, we want to make sure you’re good and prepared when you buy your Laguna Beach home. Naturally, we’ll be delighted to help you get started. As experienced professionals well-acquainted with this prime beachfront community, we can answer all of your questions and help you discover the numerous opportunities the Laguna Beach real estate market has to offer.

Until next time, keep it classy, Laguna.

Feel free to contact us at Prudential California Realty 1.949.922.8490 or email: hillary@thecoastalpropertyexperts.com.

Regards,
Hillary Caston & Associates – The Coastal Property Experts

Is there a way we can adjust to an economy that’s only now yawning awake with modest growth in both jobs and productivity?  CG Barbeau, an Orange County mortgage bank officer, offers these tips on how all of us can deal with what she calls ‘the new normal’.

1. Remain on your job, even if the grass starts looking greener on the other side. Staying put is a great way to maintain stability in your life. And we could all use more of that right now.
2. Borrow money from a credit union if at possible. Credit card fees are expected to jump very soon.  Money from a credit union will be costing you about 20% less than it will from credit cards.
3. Avoid overdrafts. These fees soon will be taking a bigger bite out of your wallet as well.
4. Never borrow more than 69% of your max credit line. 70% or more will hammer down your FICO score.
5. If the interest rate on you loan rises, don’t take this assault on your finances sitting down.  Call up the lender and argue your head off. You’ve got nothing to lose but some percentage points.
6. When you need a credit report, go to a reputable bank. The last thing you need is inaccuracies tarnishing your financial picture.
7. Save, save, save. OK, interest rates aren’t exactly scraping the sky. But a penny saved is still a penny earned. You never know when you’ll need all those pennies for a rainy day. Unless you have a few rich uncles who can provide bail out cash, better to have your own greenbacks neatly tucked away.

These are just some of the common sense steps you can take to fortify your finances in our evolving economy. If you’d like to learn more about prudent financial planning, CG would be more than happy to help.  You can connect with her at 949.637.8190 or caroline.barbeau@cox.net .

For this week’s edition, my search for the best of the best has uncovered several phenomenal deals among Orange County Short Sale homes.

$1,349,000    515 Alta Vista Way   LAGUNA BEACH

Thrill to unobstructed views of the majestic blue Pacific, picturesque Catalina Island, and golden sunsets gleaming on a glassy ocean! This roomy 3600 sq.ft. beachside beauty speaks elegantly with cathedral ceilings, high windows, and a cozy fireplace. Sip your favorite drink and sooth away cares in a private sauna nestled in the exquisite master suite. This masterpiece also features 4 bedrooms, 2.5 baths, a separate bonus game/recreation room, a separate guest unit with private entrance, and a spacious view deck ideal for entertaining guests or taking in spectacular ocean sunsets. Priced at an amazing $1,349,000.

$1,275,000   1674 Del Mar Ave    LAGUNA BEACH

This beautifully remodeled home is a true inspiration, offering breathtaking ocean views and a spacious, vaulted-ceiling living room. The kitchen is impressively highlighted by travertine floors, granite counters, a separate breakfast area, and a formal dining area. Outside, a pool, spa, and built-in BBQ help create the ideal setting for entertaining family and friends. Scenic journeys along nearby hiking trails add a touch of exhilaration to this oceanfront treasure. A tasty slice of Laguna Beach life offered for only $1,275,000.

$974,000  328 E Balboa Blvd  NEWPORT BEACH

A golden opportunity to live the good life of beautiful Newport Beach.  Located on Balboa Island, this stunning corner lot duplex is only a block away from pristine sandy beaches and hundreds of popular Newport Beach destinations and activities. An ocean-sized deal at $974,000.

$799,000     1566 Glenneyre St   LAGUNA BEACH

A Laguna Village triplex in a prime location, just a block from the beach! All three units are completely renovated and feature 2 bedrooms and 1 bath. Two units offer fireplaces, a balcony, and spacious patio deck for beach style entertaining and breathtaking ocean views. Residents also will appreciate the on-site laundry room, 4 covered carports, and a private access driveway.  A beachfront bargain at $799,000.

If you’d like to learn more about the priced-to-sell Orange County Short Sale homes currently available, I’ll be delighted to help. As somebody who is well-focused on this one-of-a-kind community, I can answer all of your questions and help you discover the numerous opportunities the Orange County Real Estate market has to offer.

Feel free to contact me at 949.922.8490 or hillary@thecoastalpropertyexperts.com.

It was the fabulous Laguna Beach home Beth wanted. No matter that it needed a few repairs and she was accepting the terms of the contract: “AS IS” “AS IS”.  It was still a gem among Laguna Beach properties, exuding charm to spare.  Plus it was an amazing buy. And the location: the best in Orange County!  The house sat comfortably in breathtakingly beautiful Laguna Beach Canyon.  Beth was bound and determined to make this her residence. And I was determined to help make her dream come true. I wanted to come through as a great realtor.  

But alas, a challenge loomed. Inspections revealed the air conditioning system failed to cool the upper story. The air up there was cooking at 89 degrees, even with the AC blasting. And there was water leakage in not one, but all 3 bathrooms dripping into the kitchen. Not good. Total repair estimate — $3,800. Ouch!

Beth wanted the house – badly. However, the $3,800 greenbacks would take a healthy chunk out of her wallet. She wanted the seller to foot the bill. Unfortunately, the contract said she was buying the house “AS IS”. What was she going to do? Help! “Hillary, I want this home, but I can’t spend any more money. This is a buyer’s market for goodness sake!” I pondered the matter. “ How can I save this deal and make both the buyer and the seller feel whole.  I’d have to do something quick before somebody walked away from this plumb of a deal.”  So what was my solution?

Find Out in Part 2 of Hillary’s Cliffhanger Case Studies.

And while you’re waiting, I’ll be happy to answer any of your questions or provide information pertaining to the bustling Laguna Beach Real Estate market.  Feel free to contact me at 949.922.8490 or hillary@thecoastalpropertyexperts.com.

The best time to buy a home is in the fourth quarter of the year. That is, in that stretch of holiday months covering October thru December.  There’s a very sound reason for this. Sellers are in a much greater hurry to rid themselves of properties this special time of year. Imagine you’re in a nightclub without that catch you were looking for at 1:45 am. You’re a bit more itchy to make things happen, right? Sellers during these months pretty much feel the same forces of nature. That’s because a large percentage of sellers want to close things out before the first of the year. It’s really a psychological thing. Selling in Quarter 4 gives people a comfortable sense of closure. Plus they want to close their books by December 31 to keep things in order for the Tax Man.  The upshot of all this end of year urgency is that prices often drop to bargain levels during this period.

Of course, you don’t need to wait for the last quarter to start looking.

If you’d like to learn more about the many priced-to-sell Laguna Beach homes that are available, I’ll be delighted to help. As somebody who is well-focused on this one-of-a-kind community, I can answer all of your questions and help you discover the numerous opportunities the Laguna Beach Real Estate market has to offer.

Feel free to contact me at 949.922.8490 or hillary@thecoastalpropertyexperts.com.

I’ll see you at the seashore!

Hit the Beach – Obviously. LB is made up of eight separate irresistible beaches, each with its own energy and character.  Swimming, surfing, boating, picnicking, scenic strolls, kayaking tours, and diving are some of the ways to splash up the kind of fun you won’t find in the big ciy. And when you’re ready to exercise your loafing privileges, there are miles of white sandy beaches suitable for sunbathing.

Get Up Close and Personal Some Extremely Large Mammals – Whale watching expeditions leave from nearby Dana Point. Bring a camera. But don’t expect autographs.

Escape to a Park – Four scenic ones to choose from, including Heisler Park Ecological Preserve.

Get Your Sport On – Golfing, Bike Riding, World Class Health Club, and Hiking are yours for the asking.

Indulge Your Artistic Side — Enjoy four acclaimed events: Pageant of the Masters, Festival of Arts, Sawdust Festival, and Art-A-Fair.

And , of course, the views. You could spend all year taking in the miles of breathtaking ocean vistas. What more could you want?

For folks lucky enough to live in this Pacific Coast paradise, life is a year-round vacation. Would you like to be one these incredibly lucky people? I can show you why it’s a fantastic time to take advantage of the Laguna Beach Real Estate market.  As somebody who is well-focused on this one-of-a-kind community, I can answer all of your questions and help you discover the numerous opportunities the Laguna Beach Real Estate market has to offer.

You can contact me at 949.922.8490 or hillary@thecoastalpropertyexperts.com.

See you at the seashore!

Every week, Hillary Caston and her team at The Coastal Property Experts look for homes for sale that are of interest. Take a look at the Picks for 7-29-10. To see the full MLS listing information on any of these properties, go to: http://www.thecoastalpropertyexperts.com/Market-Snapshot-Report.php

This week, we highlight 6 homes: 2 Homes for sale in Laguna Beach, 2 Homes for sale in Laguna Niguel, and 2 Homes for sale in Dana Point.

Registered Users of the website get the first look at these properties. To get on the list, be sure to register after clicking on the “Search MLS Listings” button.

33932 Barcelona Pl, Dana Point, CA

33932 Barcelona, Dana Point Homes for Sale

Priced at $1,849,000

$307.81/Sq.Ft.

The layout of this home is a little “unique”; however, the extras on this Dana Point home for sale are incredible: gameroom,

Guest/Maid quarters, Photo Lab/Dark Room/ Wine Cellar

Workshop, Media/Music Room/Game Room, Unfinished

Basement, Exercise Room, Au Pair Suite, Pool&Spa,

4-car garage (which can fit an RV)  and more!

The home is 6007 SqFt and sits on a 9500 SqFt Lot.

32512 Azores Rd, Dana Point, CA

32512 Azores, Dana Point Homes for Sale

Priced at $1,699,000

$536.47/Sq.Ft.

Single Level Custom home in Monarch Bay Terrace.

More than 1/3 acre lot size with a 3167 SqFt Home

715 Marlin, Laguna Beach, CA

715 Marlin, Laguna Beach Homes for Sale

Prices at $2,130,000

$495.35/Sq.Ft.

4300 Sq. Ft. on a 9000 Sq. Ft. Lot

Ocean Views and a Master with Fireplace

232 Chiquita St., Laguna Beach, CA

232 Chiquita, Laguna Beach Homes for Sale

Short Sale Priced at $1,200,000

$571.43/Sq.Ft.

Ocean view remodel with 3 Beds/4 Baths

2100 Sq. Ft. on an R2 lot that has a 1/1 rear unit that currently rents for $1400/mo

31941 E. Nine Drive, Laguna Niguel, CA

31914 E Nine, Laguna Niguel Homes for Sale

Priced at $1,050,000

$ 368.42/Sq.Ft.

Gated community of Links Pointe with views of El Niguel Country Club Golf Course

4Beds/3Baths/2850 Sq. Ft. on a 7560 Sq.Ft.Lot

14 Palisades, Laguna Niguel, CA

14 Palisades, Laguna Niguel Homes for Sale

Priced at $1,195,000

$ 497.92/Sq.Ft.

Ocean views on a single loaded cul-de-sac

4 Beds/3 Baths / 2400 Sq. Ft.

In their first U.S. Foreclosure Sales Report, RealtyTrac reported that 31% of all residential home sales in the first quarter of 2010 were in some phase of the foreclosure process. These include homes for sale in default, where an NOD had been filed by the lender, or those that were already taken back by the bank and labeled “REO” or Real Estate Owned.

In comparison, the percentage of homes sold in the first quarter of 2009 that were in the foreclosure process sat at 37%. More than 1.2 million U.S. properties that sold in 2009 were in some stage of the foreclosure process.

On average, buyers who purchased a home for sale in a foreclosed status paid 27% below the average sale price of properties that were not in a distressed status.

The report noted that “Discounts on REOs are larger than discounts on pre-foreclosures, although discounts on pre-foreclosures appear to be trending higher as short sales become more common.”

There are a couple of points to keep in mind as you look at these numbers:

• The statistics reflect a large area: the entire country or an entire state. They are not broken down by County or City.
• In California, for example, the number of distressed properties in the Inland Empire where there was a large amount of investment owned properties, was higher than in some of the coastal areas such as Laguna Beach.
• In areas where there was a high percentage of vacant, REO homes and those in foreclosure, the banks may have been more motivated to close the sale on the property so that their exposure in the area was lessened.
• It may have been more financially beneficial to use the government TARP money to make deals in these higher-risk areas.
• The number of REOs may decrease in future reports. Lenders have indicated that they are more inclined to work with a short-sale home for sale  situation than to take on all the added costs involved in an REO, such as attorney fees.
• Sellers of non-distressed properties are becoming more educated about their need to price their homes according to where the market is today, not what it was a couple of years ago. Many realize that they are competing with distressed properties for buyer’s money. So, keep your eyes on both “regular” and distressed properties. After all, a good price is a good price, no matter what the situation of the seller!

 Read the full report:

In another, related report, the top 50 cities were listed that had the greatest price reductions…Orange County Homes and Laguna Beach Real Estate were not on that list! On average the top 50 areas included saw average reductions from 7%-26%. The city with the most drastic reductions, which is really no surprise, was Detroit. No ocean view there!

One note to keep in mind as you look at price reductions. There are always 2 reasons for the price reductions. 1) Economically, the market has determined that the home is worth less than what seller has priced it at and 2) The seller decided to initially price the home at a higher rate than what the current market deemed appropriate – this is more a case of seller denial of current market conditions rather than an indication of overall market conditions.

It’s a very slight difference in perception, so just be sure that you don’t simply get caught up in the statistics and numbers. They can be used as a guide, but in the end, what you determine to be the perfect home and the perfect price is up to you.

As always, I invite you to allow me help you with any questions that you have. Those that have worked with me know that I’m a no B.S. straight shooter. If a home that you are interested in is overpriced – I will tell you. Similarly, if a great deal is out there I will enthusiastically share it with you!

Just Contact Me!

Until next time…

We have talked often about getting your financial ducks in order before hitting the pavement to find your Laguna Beach Dream Home for Sale. It’s always nice to look and dream about a life at the beach. But it’s even nicer to make that dream a reality.

I know that it’s hard to look past the forest of economic news that is in front of you and see the opportunities. But the fact remains that we are seeing prices of Laguna Beach Homes for Sale that were last seen in 2002! Plus, the interest rates remain at historically low levels.

Lenders are more cautious with some of their underwriting criteria for various reasons. Don’t let this keep you from doing what you can to position yourself to grab your dream home when the right opportunity and circumstances collide.

One of the entry level thresholds of obtaining a loan has always been your credit score. Understanding what is factored into this score will help you to create habits that will give you the best chance at the highest score available for you. Here are just a few tips:

• Bill payment history accounts for about 35% of your FICO Score. Paying your bills on time each month is important.
• Outstanding debt accounts for about 30% of your FICO Score. This is an interesting mix. The lenders want to see that you have other credit and you know how to use it wisely, but they don’t want you to use too much of it by maxing out your cards. Most experts advise to use less than 30% of the total credit limit. For example, if you have a credit card with a $5000 limit, then keep your balance at or below $1500. Unfortunately, if you have a card that you max out but pay off in full each month, it doesn’t always reflect in your favor on your report, even though paying the balance in full each month is a good practice. If you plan to apply for a loan in the near future, start getting your credit balances down to favorable levels.
• Credit history accounts for about 15% of your FICO Score. So if you are just starting out, you won’t get too many points here. However, it is a small percentage of the total score.
• The remaining 20%…well, that’s still a bit of a mystery!
• Don’t apply for too much credit in a short period of time since it may look as if you are desperate. If you are shopping for a loan, you get a little break since credit pulls from mortgage companies over a period of several days will count as a single credit inquiry.
• If you have been approved for a home loan, don’t make any major purchases, additional credit inquiries, or changes to your credit report. Lenders are pulling credit reports for approved borrowers right before they fund the loan (which could be after you have signed loan documents and think that it’s all over but the singing). Don’t get caught with your household belongings in the moving van and no place to go!

The good news is, wherever you are at right now in terms of your credit score, credit scores are salvageable. With the right information about what will give you the most bang for your buck, and a little determination, you can get your score to a level that the banks will approve.

Take action today with the following steps:

• Get a copy of your credit report. Call your lender and have them pull it for you or get a copy from the credit companies for free.
• Take the time to review the information to make sure that it is accurate.
• Correct any errors by writing to the credit bureaus and notifying them that there is an incorrect item on your report.
• Finally, make a list of steps that you will take to improve your score (i.e.…start paying bills on time, reduce the balances to less than 30% of the limit per company)
• Take action on the steps, little by little, consistently, each week.

Remember…nothing happens until something moves…so, get moving!

See you at the beach!

Until next time…