According to Wikipedia, a grassroots movement... is one driven by the constituents of a community.

Walking out to my car on a warm Saturday morning, I am thankful to my neighbor who had started a grassroots movement of his own... what I'm going to call the "No More Dead Grassroots Movement". For almost 6 months, my awesome neighbor, Frank Veloz, has mowed, watered, and tended to the garden and the front lawn of the house abandoned next to his.

Finally, just last week, the bank has taken possession, and thankfully, has turned the water on and started landscaping service. I say thankfully, because as you can clearly see driving through your neighborhood, sometimes the banks/realtors will go this extra mile, and sometimes they won't.

Unfortunately, things are going to get worse before they get better.

Recently, Joseph Ascenzi with TheBizPress.com reported

"One in every 38 houses in the Inland region received a foreclosure notice of some kind during the first quarter of this year, the second-highest foreclosure rate per household of any metro market nationwide during that time."

Mr. Ascenzi goes on to report, "In all, 37,239 foreclosure notices - default notices, auction sale notices or bank repossessions -- were issued on properties in Riverside and San Bernardino counties during the first three months of this year, a 230.8% increase compared with the first quarter of 2007, according to RealtyTrac in Irvine, which charts foreclosure rates throughout the United States. The activity represented a 39.1% jump in foreclosures compared with the fourth quarter of 2007, RealtyTrac found."

"Unfortunately, I think we're looking at the tip of the iceberg," said Steve Johnson, director with the Riverside office of Metrostudy, a housing information and consulting firm based in Houston. "Because of the jobs we've lost and the other economic problems we're having, I think we're going to see a lot of foreclosures for at least nine more months. I believe this has become an economic issue, not just a subprime issue."

The "tip of the iceberg"? 9 more months? And although the article is saying 1 in 38, I don't know about you, but the ratio is much higher in my neighborhood. Yikes!

To minimize the damage to the asthetics of our neighborhoods join me, and caring neighbors like Frank, in supporting a "No More Dead Grassroots Movement" here in Menifee. Here are some suggestions:

1. If you are losing your home, stay in it and take care of it until the house goes to bank sale. (The banks really do want you to stay until they take it. By doing so, the property has less chance of being vandalized, the landscape stays green, and you can take advantage of the bank's "Cash For Keys" program. If you don't know how long before the bank sale, your friendly neighborhood Realtor can usually get this info from the MLS Realist website.) Note: this also applies to Renters in foreclosure homes.

2. When you do move-out, keep the eletricity and the water on for at least a couple of weeks. That will give the Realtor time to switch over service.

3. If your neighbors move out unexpectedly, do what you can to help maintain the front yard of the property. Do not assume that the bank will immediately take over the maintenance of the property. Get together with your other neighbors and take turns mowing and watering.

Although we, as a community have no control over the number of foreclosures each neighborhood will see, we DO have control over the way our neighborhoods look.

I know there are other Frank Veloz' out there, and if you have one of these in your neighborhood, PLEASE show your appreciation to him or her and POST A COMMENT on this blog.

Just Say NO... to Dead Grass!

Labels: Menifee-Foreclosures

Happy Holidays to all the wonderful people of Menifee!

It has been a busy month for all of us and this is my first chance to post in a bit. While the Menifee real estate market has been tough, there are a lot of things to be grateful for. I am grateful for my two wonderful boys, my fantastic wife, and have been blessed with incredible clients over the years! So Merry Xmas if any of you happen to read this!

Whenever I do an update of any sort, I try to show a market trend via some actually meaniful "end result" real estate statistics and then cross check that with my personal level of business. Usually, my business level is more indictive of the market then the statistics since they follow the cycle.

Statistically, in Menifee real estate there have been the following closes in the 4th Quarter:

Oct. 2007 - 34
Nov. 2007 - 45
Dec. 2007 - 30 (so far through the 28th)

I imagine that we will end up closing 35-40+ homes in December since there are over 50 deals currently pending. There is a lot of pressure on Menifee bank owned homes to close by year end, although many will spill over into the new year.

So the level of production has been pretty consistent from that statistic. However, my business has been climbing aggressively over the last month. Many of the Menifee bank owned homes are dropping to all time lows, pricing them on the same level as rentals. If you can rent or buy, people tend to buy.

So, there is quite a bit of activity going on right now, believe it or not. There is also a hot zone in pricing. For instance, the $250k price point in Murrieta and Temecula real estate is interesting. When a property hits that level and is even remotely decent (1300+ square feet, 3 bed, 2 bath, etc) it goes in a matter of days, usually with multiple offers coming in.

The banks are behind many aspects of this Menifee real estate market. From failed loans to foreclosure properties to generating eligible buyers. Now that the banks have gotten more aggressive with house pricing, things are starting pick up.

However, in contrast to attractive pricing, the banks are making it harder and harder for Menifee real estate buyers to qualify. I just had a buyer ready to go, in escrow and the bank changed the program days before his close, ruining the deal and making us start all over.

In many respects the Menifee real estate market is in the hands of the banks. They control a majority of properties (and thus pricing) on the market in terms of Menifee foreclosures and short sales. So when they lower prices it redefines the market. And by restricting more and more buyers, they control both the supply and demand. The average homeowner is going to be a spectator for a while unless they are in a short sale or foreclosure situation.

Many of you have heard the Federal Reserve is working on different methods to get things improved. The main one is the lowering of interest rates which has helped. Another is them pouring more money into the system to give banks more to work with. However, until the banks are willing to loosen up it is simply a hose turned on full but kinked by the bank's foot shutting down the flow.

I think that things will be tighter in terms of lending for the next couple months and pricing will go a tad lower as the banks completely liquidate holdings. The new legistlation will help reduce future Menifee foreclosures and once the banks lighten up on Menifee real estate they can start relaxing a little more in lending. In many ways, they are continuing to shoot themselves in the foot and will figure that out sooner than later.

The Menifee real estate market will probably begin to see more properties moved as the price lowers enough that people can qualify for loans and buy instead of rent. Depending on the banks, we could start to see pricing holding water in the Spring.

So going into the new year, I believe we are nearing a bottom from what my own business is seeing. I deal with dozens of clients each month and there are certain patterns that seem to click. I think Menifee real estate has a little way to go but we are finally getting there. I don't like the price drops but I do like seeing a light at the end of the tunnel.

I hope this information is useful to you. If you know anyone that is considering buying, please have them speak with a broker knowledgible in the Menifee real estate market. There are some great opportunities right now. And please, if they are considering buying from a builder, they absolutely must talk with a experienced broker first! There are way too many mistakes being made on this front lately!

Happy Holidays and New Year - May 2008 bring you and your family the very best!

Sincerely,

Stefan West
Diversified Realty, Broker
951-894-6199

Labels: Menifee-Foreclosures, Menifee-Real-Estate-Market, Menifee-Shortsales

If you thought a foreclosure ended the financial miseries associated with your former home, think again. You soon could be hearing from the IRS about taxes due in connection with the residence you no longer own.

"You can walk away from the big house payment, but not from the potential tax implications," says John W. Roth, senior tax analyst at CCH in Riverwoods, Ill. "And if you couldn't afford the mortgage, you probably can't afford the taxes."

As the lending crisis continues to shake out, more homeowners, particularly those who used creative mortgages to buy their houses, could be in this predicament. Even longtime homeowners who refinanced their properties based on increased value when the real-estate market was hot could find themselves in tax trouble if they lose their properties to the bank.

Read more of this atricle at http://realestate.msn.com/selling/Article_bankrate.aspx?cp-documentid=5427263

HOLLY KAY
BROKER ASSOCIATE
SUNSET REAL ESTATE AND MORTGAGE
951-757-9632

Labels: Capital-Gains-Taxes, Menifee-Foreclosures