2011 Foreclosure Property Statistics for San Luis Obispo and Santa Barbara Counties

By admin | Published April 17, 2012

Guest blog by Christie Tjong

Foreclosure Market on the Rise

In San Luis Obispo and Santa Barbara County; the foreclosure market is steadily rising and the increase in numbers doesn’t appear to be dissipating anytime soon.  To give you an idea of the foreclosure inventory, here are some statistics on the foreclosure market and housing inventory in California.

  • There is an average of 2.6 months of REO Inventory
  • There is an average of 5.9 months of Equity Sale Inventory
  • There is an average of 7.9 months of Short Sale Inventory

Now for San Luis Obispo and Santa Barbara Counties:

  • 25% of closed sales in San Luis Obispo County are REO (foreclosures) and 16% are short sale. (We are in good shape compared to Solano County which has a percentage of closed sales coming in at 42% REO and 31% Short Sale.)

At this time of this writing, in San Luis Obispo City, there are currently:

  • 50 homes are in Pre Foreclosure meaning they have received a Notice of Default
  • 34 homes are set for Auction meaning they have received a Notice of Trustee’s Sale
  • 13 are Bank Owned, Real Estate Owned

Compare San Luis Obispo statistics  to Sacramento, which is experiencing 2667 home in Pre Foreclosure, 1776 going to auction and 1281 are bank owned!

Actual Sales of Foreclosed Homes in San Luis Obispo Coounty in 2011

When a foreclosed home is sold and ownership transferred to the new buyer, it is recorded as a Trustee’s Deed.  Below are numbers of Trustee’s Deeds recorded in SLO County for 2010.

January: 413
February: 820
March: 483
April: 365
May: 451
June: 433
July: 413
August: 298
September: 532
October: 256
November: 264
December: 320

The spike in Trustee’s Deeds in February can be attributed to a rise in Notice of Defaults recorded in the latter part of 2010.  This is true because once a Notice of Default is recorded; the bank has to wait at least 111 days to post a Notice of Trustee’s Sale.

Amy Hoak, a real estate columnist for MarketWatch, summarized foreclosures statistics provided by RealtyTrac:  “Sales of foreclosures accounted for 20% of all U.S home sales in the third quarter of last year. The average sales price: $165,322, 34% lower than the average sales price of homes not in foreclosure.”

Forecast

As for San Luis Obispo, I don’t foresee the foreclosure market going away anytime soon. In a conversation with a local Foreclosure Service Company; I asked them what the percentage of homes were bought at auction on the Courthouse steps compared to the number of homes that go back to the bank as an REO sale. The owner of the local Foreclosure Company stated less than 5 % of homes are purchased all cash at time of sale.   He also said that number had been rising over the last few months due to more out of town investors coming to the area and more investor groups who pooled cash to invest in the foreclosure market.

From a title company point of view, this is the market we live in today and foreclosures and short sales are part of real estate.  It is necessary to understand and educate our community about the foreclosure market. There can be investment potential in the foreclosure market which will in the end result in a more active real estate economy.

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Christie Tjong is a Sales Manager for Fidelity Title on the Central Coast.  You can reach her at (805) 782-9600.

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Understanding Home Owners’ Association Before you Purchase

By admin | Published April 10, 2012

Guest blog post by Larry Chandler

Buying a home in a Planned Unit Development usually involves participating in a Home Owners’ Association (HOA).  The association has some perks and benefits offered to the owners in exchange for a fee.  Before buying a home that is governed by an HOA it is important to understand the association’s impact on you.

Get the Rules Up Front

Before buying a home that is subject to a HOA ask for a copy of the rules, CC&Rs, recent budget and minutes from the yearly meetings.

The Covenants, Conditions and Restrictions (CC&Rs) are legally binding limits, rules and obligations that homeowners must follow once the home is purchased.  Each HOA will have its specifics, but most of the rules will pertain to items such as property maintenance, allowable changes in architecture, pets, storage of vehicles and other similar items.  Most HOA will request that a super majority of all the homeowners agree to any rules therefore the rules are fairly set once in place.

Rules and Regulations usually cover items not specifically addressed in the CC&Rs.  It can also offer further explanations for broad items. Examples of items covered by the rules are guidelines for pets, rules for the pool, restrictions on parking and fines for people that do not comply.

Budgets and Minutes

It is important to review the budget to get a snapshot of the HOA’s financial well-being.  Certain items are expected to be paid via the HOA.  If the money is mismanaged then it could be a red flag to stay away from the community.

The minutes can provide you with a chance to see if there are any current conflicts going on between homeowners or the board and the residents.  Possible projects, or current projects, can be reviewed from the minutes to ascertain estimated finish dates.

Problem Areas

Here are some basic things you need to keep in mind when reading through the various rules and restrictions.

Your attitude – Do you normally like to follow along with the crowd and abide by the rules, or are you a rebel?  The opportunity to customize the features of a home is greatly restricted by most HOA’s.

Pets – If you have any pets you need to make sure to review the rules regarding animals.  Most lawsuits favor the HOA vs. the owner based on the restrictions placed in the CC&R’s.  Failing to understand this can result in trouble.

Parking – If you have multiple vehicles but your home has only a single car garage, where can you park the other items?  If you have friends or relatives that frequently visit, is there room for them to park?  Parking on the street may be allowed in some areas and it may be a direct violation in other places.

Costs – Find out exactly what the annual fees are.  In addition, ask about any annual increases and their limits.  Some HOA’s can increase the fees by as much as 20% without any vote from the homeowners.

 

The bottom line is that you should thoroughly do your homework prior to buying a home included in an HOA.  Go over the rules and make sure you can be happy abiding by a list of restrictions.

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Larry Chandler is a freelance writer for Ulster County Real Estate located in southern New York.

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How Does A Short Sale Affect Your Ability to Buy A Home in the Future?

By admin | Published March 14, 2012

Guest blog post by Cyndi Nunez

The tremendous drop in real estate values since 2008 has left many homeowners facing the question of what to do with their home.  Some are still considering either foreclosure or short sale.  In this article, I will answer some of the most frequently asked questions I hear related to Short Sales in 2012.

What is a Short Sale?

Short sale is a sale of real estate in which 1) the proceeds from selling the property will fall short of the balance of debts secured by liens against it and 2) the property owner cannot afford to repay the liens’ full amounts.

When this occurs, the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency balance. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower; however both will often result in a negative credit report against the property owner.

How does a short sale affect your ability to purchase another home in the future?

One of the biggest concern you may have when considering a short sale is how it will impact your ability to buy in the future.  As you may know there are several loan types: Conventional (FNMA/FHLMC), FHA, VA and USDA. Each has their own set of guidelines with respect to a short sale.

VA Loans

If you are purchasing using a VA loan, the Veterans Administration views your short sales the same as a Foreclosure or Bankruptcy. The waiting period is two full years from the date that your short sale closed.

FHA

FHA has two sets of guidelines. If you were delinquent in the 12 months preceding the short sale, the time period must be 3 years from the sale date.
If the property sold in the short sale was your primary residence and you had no delinquencies in the 12 months preceding the sale, you are eligible with no waiting period!

Conventional Fannie Mae

On a Conventional loan, FNMA has different waiting periods according to down payment. The following guidelines apply:

  • 2 year waiting period with 20% down payment
  • 4 year waiting period with 10% down payment (primary residence only)
  • 7 years to obtain maximum financing.
Conventional Freddie Mac

With Freddie Mac, you are eligible after 2 years with a 10% down payment.

USDA

This rural housing program requires a 3 year waiting period after the short sale

What are the tax consequences of doing a short sale?

Currently through 2012, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation is in effect. This act generally allows taxpayers to exclude income from the discharge of debt on your primary residence.E xtensive information can be found in the following document: IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments. Click here to see it online.

 

Coming Soon:  Ten Facts for Mortgage Debt Forgiveness

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Cyndi Nunez is the Branch Manager and Mortgage Loan Officer with Guild Mortgage Company in Santa Maria, CA    http://www.guildmortgage.net/cyndinunez

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My Central Coast Real Estate Predictions for 2012

By admin | Published January 11, 2012

Never have we been in such a state in real estate. At least not in my near 24 years in real estate sales. Who do you believe when making buying and selling decisions for 2012?  There are lots of opinions and “experts” out there. I don’t have a crystal ball, but I do have an opinion on what is in store for 2012.

Buyers are going to do well!

Take the incredibly low interest rates, add an overwhelmingly  long list of available homes for sale, adjust for being at bottom or near bottom prices, and you end up with an amazing opportunity in front of you. I will post this and look back in December 2012 and see how close I am to being correct. I believe 2012 is the year to buy, if you are considering it.  Cash will continue to be “king”, those that have it will have the best buying power. Those who need loans will still benefit. Historically, the rates are extremely low, which buys more house for your money. Lower rates also means more qualify and if the banks loosen up more money to the consumer,  we have the perfect combination of factors.

In order to position yourself to purchase with a loan, the best advice I can offer is talk to your lender of choice and get pre-approved for a loan amount.  It’s the best way to start your real estate search, it helps your real estate agent do a better job negotiating on your behalf, and ultimately you’ll have a better chance at getting your offer accepted when you competing against other buyers and/or get you a better “deal” on your home purchase.

There are a lot of “deals” to be had, but some of the best ones are foreclosure properties.  You can request to a free listing of Central Coast foreclosures here.

Eddie Stanfield

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Home For Sale With Land in Nipomo

By admin | Published December 20, 2011

How would you like to own a property that would allow so many different enjoyable features and activities such as:
1. Riding horses
2. Fishing for bass, bluegill, and catfish in an amazing one-acre pond
3. Enjoying a 1,000 sq. ft. shop for hobbyists
4. Living in a five-bedroom home with a downstairs area fitted with two rooms for guest quarters and another room to build a separate detached home!

House on top of a hill

What I just described would be an incredible haven on the popular coastal town of Nipomo California. This much-coveted, multi-feature property on the Central Coast of California is now available at an unbelievable low price under $900,000.

The residents of this retreat home can rise in the morning to pick and eat some fresh fruits from the lavish orchard of grapefruit (the best around), apples, and oranges. When lunchtime comes, they can also opt to walk down to the lake to catch some fish to grill up along with fresh avocados from the avocados orchard. From the gourmet kitchen windows, gaze at the over a dozen of mature coastal oak trees that surround the 10-acre valley or get your daily exercise through a horse ride right on site.

The Gourmet Kitchen

I haven’t seen a property with all of these incredible features in a long time. It is completely fenced and gated for your security and peace of mind. You will be impressed.

A safe, gated haven on Central Coast

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Self-Storage in Paso Robles, Templeton and Atascadero

By admin | Published November 28, 2011

Many of my clients are downsizing these days.  Having done that myself, I can honestly say -  it is nice to be able to donate or sell items I haven’t used in a long time.

But if you own a boat or a recreational vehicle, sometimes moving to a small home can create a challenge.  And some clients are moving to temporary situations and need affordable, safe and convenient self-storage.

So I want to let you know about the new self-storage in north county.  It has a very convenient location for those who live in Paso Robles, Templeton or Atascadero  and only about 25 miles from San Luis Obispo.  The rates are very competitive.

So if you need to store an RV, boat or looking for affordable self-storage units, check out the Self Storage Park in Templeton.

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Fabulous Horse Property For Sale in Nipomo

By admin | Published November 22, 2011

Already zoned and laid out to build your own equestrian center, these 10 acres may be the best buy on the market today. Santa Barbara county regulations state that up to 14 horses are allowed. Currently, the property features so many incredible features and has great water capabilities if you want to expand. Level acres right next to the one acre pond lend well for stables. There is also an arena with over a dozen gorgeous coastal oak trees that provide shade on the grounds.

A two-story home on top of a hill

A two-story home sits on top of a hill of the property, giving over 4,200 square feet of comfortable living space. The property showcases stunning views of the valley from almost every windows. This home offers a lot of advantages with its size. The entire downstairs can be guest quarters. A detached shop measures over 1,000 square feet and includes a ½ bathroom.

Safe, gated, affordable and situated in a great location, this is truly a one-of-a-kind property!

Horse Property in Nipomo

 

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San Luis Obispo, California

By admin | Published July 20, 2011

The Happiest Place in America

With a population of approximately 45,000 the City of San Luis Obispo lies between Los Angeles and San Francisco, just minutes away from Central California’s world-famous Pacific Ocean views.  While still considered a small town, it has become ever-increasingly popular due to its natural beauty and quaint, family-oriented reputation. In 2010, it was named the “Happiest City in America” and featured on the Oprah Winfrey show.

Known as “SLO” to those who live here, one of San Luis Obispo’s most desirable traits is its relaxed lifestyle and rural feel.  With the city surrounded by a series of volcanic mountains, its beauty is unsurpassed and its climate is considered ideal. The weather, mild most of the year, offers an added incentive for those who enjoy an abundance of sunshine, fresh air and the great outdoors. The annual temperature average is around 70 degrees and there’s a casual friendliness that permeates this town.

Historic museum in San Luis Obispo

There are many features that support those who are committed to a healthy lifestyle.  The city was the first in the county to institute a ‘no smoking’ policy.  There are miles of biking and hiking trails.  San Luis Obispo hosts two fabulous Farmer’s Markets, one on Thursday evening in its downtown area and one on Saturday morning in the parking lot of the shopping center off of Madonna Road.  And there is an abundance of recreational activities, small, workout facilities and restaurants that offer seafood and vegetarian options.

Some larger chain stores, such as Target, Costco and Kohls are slowly moving to the area along with those who choose to move from larger, more populated areas.  People who work from home often land here as do retirees, who sometimes venturing into a second career in areas such as the wine industry.

San  Luis Obispo Real Estate

Within its 10.5 square mile area, a plethora of neighborhoods and housing options are available and there are numerous San Luis Obispo homes for sale in and around the city.  With a mixture of new and historic areas, upscale housing is on the rise as well as affordable housing units.  The city hosts 43% of San Luis Obispo County’s jobs and 17% of its housing.  The median home age is 32 years old.  Most neighborhoods are close to a number of larger retail areas, schools and parks.  Madonna Plaza, Laguna Plaza, Marigold Plaza and Foothill Plaza are just a few of the more popular shopping areas found in and around these mixed residential neighborhoods.
Parks are plentiful (Meadow, Mitchell, Sinsheimer and Laguna Lake) and people actively visit them for multi-purpose activities.  With the warm temperatures year-round, people thrive on the outdoors and community gardens as well as outdoor sports are popular.

There are some new housing developments although affordable housing has previously been of concern in the area.  The rise of foreclosures has present some fabulous opportunities but the competition is stiff.  With an annual population growth of 2.6% and a median age of 30, it is considered desirable place to begin and raise a family.  The largest category of San Luis Obispo homes for sale is currently single-family dwellings with an estimated 20,300 residential units overall.

There are also numerous unincorporated areas that lie on the outskirts of San Luis Obispo.  An example of this is the Country Club Estates, a gated neighborhood with approximately 60 townhouses, 185 single family homes, greenbelt areas and a private country club.

Hillside of San Luis ObispoWhile San Luis Obispo County has sustained enormous growth over the past two decades, the city of San Luis Obispo has not because of a slow growth policy.  Combined with the need for student housing and a climate that attracts new residents from around the world, these factors have lead to a sometimes challenging market.  Presently, Cal Poly State University is in the process of increasing its on-site housing for students and faculty while the city continues to carefully monitor the needs for more affordable housing through entities including the Housing Authority of the City of San Luis Obispo.

Since it is a college town, it is quite common for affluent parents to buy a house for their child while attending college, and sell it after graduation.  Close to 58% of the population is under 29 years old and numerous San Luis Obispo homes for sale fall in this category each year.

So who else resides in the city besides students and affluent retirees?  What is the population made up of and who raises a family here?  How do working families afford to live here?   Cal Poly State University and the San Luis Obispo County Government Center, along with nearby Diablo Power Plant are among the areas largest employers.  The wine industry is thriving along with other tourism-oriented services, additional forms of agriculture and industry.

San Luis Obispo had been recognized nationally as a wonderful place to live on several occasions.  In 1998, “Money” Magazine rated San Luis Obispo as one of the west’s best places to live and in 2004, Frommer’s “Cities Ranked and Rated” named San Luis Obispo one of top 3 places to live in North America.  It was National Geographic Magazine’s book “Thrive: Finding Happiness the Blue Zones Way,” which named San Luis Obispo the “Happiest City in America.”

For these reasons and more, San Luis Obispo homes for sale are desirable for a wide spectrum of potential buyers.

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New Homes for Sale in Santa Maria and Orcutt

By admin | Published April 21, 2011

new_home_communitesAre you considering buying a brand new house in one of the new home communities in the Santa Maria and Orcutt area?

If so, I’ve got some great news for you. There are several quality new housing construction projects available with some very nice product. The fact that these new houses are still available for sale is a statement of the strength of the builders and their ability to make it through some tough economic times.  It is likely that they will be around in the future to back their product.

Lately I have been spending quite a bit of time putting together a Guide to New Homes on the Central Coast.  I wasn’t able to find one source of information that compares the new construction projects, their amenities and prices, so I put one together myself . Now buyers who are considering a new home can start by seeing an overview of their options.  I have researched and become familiar with the new home builders and the new homes for sale and I am happy to share this information with clients.  There are several options throughout the Central Coast, and today I’d like to focus on the ones in Orcutt, outside of Santa Maria’s city limits.

Rice Ranch Community  -  In many ways, I see these homes as Orcutt’s future.  Their master plan is to have 755 homes in 5 different neighborhoods built out over 350 acres in the beautiful foothills of Orcutt.  Currently they are building two neighborhoods, the Oaks and Pine Creek, which have various floor plans available starting at $435,000 and up.  Western Pacific Land Group is the excellent builder on this project.

Old Mill – This project is located behind Foxenwoods Estates in Orcutt.  They offer a small community of only 54 homes, from 3 -5 bedroom homes starting in the mid $400,000.  I love the location which is within walking distance to charming, Old Town Orcutt.  Capital Pacific, another excellent builder, is behind the Old Mill project, which offers single and two story floor plans.

Enclave at Harp Springs – This is a 44 homes development with less than 10 homes left at the time of this writing.  They have an awesome setting overlooking an oak-studded valley.  There are beautiful views from every home and very nice floor plans.  Capital Pacific is the builder for this project too.  Home prices start in the low $500,000.

If you are just starting your search, you may be interested in learning more about my Rebate Program for New Home Buyers in addition to seeing my New Home Guide.  I am offering to share a percentage of my commission with new home buyers who allow me to represent them in the negotiation and purchase of their new home.  I have a great deal of experience in this area and may be able to help you get a better price and more upgrades.   Plus you’ll get a generous check as a rebate once you close escrow on the sale.  Some restrictions apply, so make sure you check out the New Home Rebate Program before you start visiting any of the projects.

-Eddie Stanfield

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Best Strategy to Get Your Offer Accepted for Bank Owned Real Estate

By admin | Published September 21, 2009

With the great deals on homes on the Central Coast comes a certain frustration level in trying to purchase one. Buyers are finding a lot of unwanted competition when making an offer on a home. It is not unlikely to have 10-20 offers submitted on the same property. This is due to the lack of inventory of homes for sale and the great bargains available through bank-owned properties (REOs and foreclosures.)

How can you increase your chances of having your offer accepted by the bank who owns the foreclosure you want?
1. If possible, pay cash. Cash buyers are considered “gold” to the lender and have the strongest chance of being accepted. Unfortunately, this makes it very difficult for first time buyers and buyers with little down payment. But don’t let that discourage you, because things could fall in your favor. We have been able to get offers accepted for our first-time buyers.
2. If you need a loan, get pre-qualified for it before you try to make an offer. It’s absolutely necessary.
3. Be willing to offer more than the listed price. With this much competition, foreclosures are often selling for more than the listed price. Be realistic with your offer. Don’t expect to get a “deal” on the “deal” when you’ve got this much competition.
4. Find an agent who knows how to negotiate, who has experience with bank-owned properties, knows how to advise you, and be loyal. Here’s why: Real estate agents are trying to make a living just like everyone else. It makes sense that they are going to work hardest for those who they know are loyal to them as it means they will be compensated for their efforts.

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