Rental Homes in Menifee - Where's the Best?

Menifee resident Kristi is having to short-sell her home and find a place to rent. She wants to stay in Menifee, but wants to ask readers if they advise a good community to rent in...

Ok so I visit your site everyday and love it. I have gotten so much information that I otherwise would not know. Now my question is- We are in the process of short selling our house and now have the fun task of finding a rental. I would like to ask residents where they recommend. Is Tierra Shores really as bad as I have read and not a place to raise a family? And what about Heritage Lakes, would anyone recommend it? I have three children that I would like to raise in a safe family oriented neighborhood. I need peoples experiences and input. I am ultimately looking for a place with a private pool or a community pool. Can you please get this out there somehow so I can get some help. I have lived in Menifee for 5 years and love it here. Just wondering if the private communities are all that. We could never afford the association dues but now being forced to rent it is do able. Please help! Thanks Kristi Sheehan-Pizillo

Any folks have recommendations for her?

My house is in Foreclosure! What happens next?

So, the time has now come for me to swallow my pride, and use my own misfortune to help many of you out there.

On August 18th, my home is going back to the bank; because on that day, a small group of people will be gathered on the courthouse steps at the Riverside County courthouse, be given the opportunity to buy my house for $483,000 ... and there will be no takers. Why? Because 2 weeks ago a house just like mine sold for $284,000.

Being an REO LISTING AGENT (fortunately), a LEASING AGENT (fortunately), and CURRENTLY LOSING MY OWN HOME (unfortunately), makes me kind of an expert in this area. And, oh... the stories I've heard! Many of which just blow me away, and I am amazed at how many real estate agents, attorneys and friends, trying to be helpful, are misinforming WAY too many of you.

So with my newly acquired expertise, I hope to offer understanding, some insight, and more importantly, solid information, to those of you going through the foreclosure process.

As local Leasing Agents, my team receives several calls a week from people looking for rentals because they are losing their homes to foreclosure, or, they are renting a house that is in foreclosure. Many times they are in major PANIC mode as they don't know how much time is left before the bank takes their home. Fortunately, as Real Estate Agents, we are able to look up tax records to verify Notice of Default and Trustee's Sale dates. Knowing these dates will help you to know when you should start looking for a Rental Home.

The following will help you understand the foreclosure timeline a little better.

California Foreclosure Timeline

After 1-3 missed payments
Lender considers property to be in Default

Day 1
Record Notice of Default

Within 10 Days
Notice of Default Mailed to Trustor (Borrower) and Special Requests for Notice

Within 1 Month
Notice of Default mailed to parties pursuant to California Civil Code 2924(c)

After 90 Days
End of 90 Days redemption period. Trustee’s sale date can be set.

25 Days Prior to Sale Date
Notice to the IRS must be given if required

At Least 20 Days Prior to Sale Date
Publish Notice of Sale, Post Notice of Sale on Door of House, Mail Notice of Sale to Owners

Within 10 Days From First Publication of Notice of Sale
Send beneficiary request for property directions.

14 Days Prior to Sale
Record Notice of Trustee’s Sale

5 Business Days Before Sale Date
Right to reinstate expires

Sale Date
Property Sold to highest bidder (or if no bids, goes back to Lender)


AND THEN... it is my personal experience that:

2-10+ Days after Sale Date
The Lender REO Listing Agent sends letter, or, comes knocking on door, to negotiate CASH FOR KEYS or RELOCATION ASSISTANCE PROGRAM. They will usually offer between $500 to $2500 and will require you to set a Move-out date to occur within 2-3 weeks. (Note: Some Lenders will also require you to show PROOF that all utilities have been paid up-to-date on Move-out date.)

NOTE: If you do not accept the Cash For Keys negotiation, or, if you ignore the REO Agent and the letters from the Lender's eviction attorney, EVICTION PROCEEDINGS WILL BE STARTED. You DO NOT want this to happen as this will GREATLY HAMPER your ability to RENT A HOUSE.

Move-out Date
Lender's Agent inspects property, verifies no appliances are missing, and that property has been left in broom-swept condition (including garage and yard). Owners give keys to Agent, Agent gives bank Check to Owners.


In simpler terms:

90 days* missed payments + 90 days redemption period + 21 days until Trustee's Sale + 7 days until REO Agent contact + 14 days to Move-out = 7.5 months approximately.


AND NOW... A LITTLE PERSONAL ADVICE

1. Save as much money as you can during these months of non-payment because you may be required to pay and ADDITIONAL deposit on a rental home. (First month + deposit equal to one month's rent + pet deposit (if applicable) + ADDITIONAL deposit equal to one month's rent = your move-in costs)

Do not count on the Cash for Keys to be part of your move-in costs, as if you do receive this, it will not be until AFTER you are fully moved out of your house.

Visit local websites and review Pennysaver ads to get a general idea of the rental homes and prices in our area. Start actively looking for a rental as soon as you get the Notice of Trustee Sale date.

Try to keep the rest of your credit under control. Most property management companies and landlords accept the current foreclosure situation of potential renters.

Start saving your paycheck stubs as landlords want to see documented income - usually at 3 times the amount of the rent.

Keep your bank account under control. Many times Landlords want to see your last two month's of bank statements.

SAVE SAVE SAVE... no one will understand a family coming out of foreclosure, having paid no house payment for over 6 months, not having enough funds to move into a new house. Once you find a rental, you need to be ready to give a full month's rent as a deposit for it to be held for you until move-in.

I hope this information helps many of you. Please feel free to call me anytime if you have more questions. I am always happy to be of help.

I know how sad it is to have to walk away from your home. I truly am so sorry for those of you going through this, the same as me. After being a homeowner for over 18 years, having dropped $80,000 on the home of my dreams 4 years ago, and now watching my American Dream go "POOF" right before my eyes... this is a pain I don't wish on anyone.

BUT... we must remember... this too shall pass. It is what it is, so get up, dust yourself off and get on with getting on.

There is tomorrow, and the hope that it brings, that we will again, one day, achieve that "American Dream".


DISCLAIMER: I am not an attorney, nor do I give legal advice. The above information is based on information from outside sources and my own personal experience. All Lenders move at different paces, individual time frames will vary. This simple time frame above is what I see to be the norm here in our area.

*The California Foreclosure timeline is applicable for California Non-Judicial Foreclosures under Deed of Trust. Foreclosures begin with the Trustor (borrower) not making the monthly payment to the Beneficiary (Lender). The first missed payment is technical default, but in practical terms, most Beneficiaries do not begin the process until the third payment is missed. If the Beneficiary cannot resolve the defaulted payment amount with the Trustor through Forbearance or other Loss Mitigation measures, the Beneficiary will instruct the Trustee to begin Foreclosure proceedings. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.

Menifee Home Sales for June 2008

Here is some real estate sales data I found published on Housing-Kaboom, for June 2008. These numbers were calculated by DataQuick...

Community	Homes Sold	June 2008	June 2007	% Change
Hemet	161	$177,000	$288.750	-38.70%
Homeland	2	$167,750	$435,000	-61.44%
Lake Elsinore	119	$245,000	$385,000	-36.36%
Menifee	109	$268,000	$392,000	-31.63%
Murrieta	296	$289,000	$440,000	-34.32%
Nuevo	9	$238,500	$547,000	-56.40%
Perris	134	215,000	$370,000	-41.89%
Sun City	88	252,500	$328,250	-23.08%
Temecula	239	$319,000	$450,000	-29.11%
Wildomar	45	$294,000	$440,000	-33.18%
Winchester	84	$305,000	$423,250	-27.94%

Probably most notable is Perris, taking a drop of nearly 42% on 134 sales. Ouch!

You can view numbers for other communities throughout the Inland Empire on Housing-Kaboom...

http://housing-kaboom.blogspot.com/2008/07/june-sales-by-city.html

Menifee Real Estate is not a Buyer's Market or Seller's Market, it's a Banker's Market

Ah it is nice to be back in Menifee real estate blogland! I have been gone for the last couple months because the market has been all over the map. After diligent research, a complete lack of days off, and crazy marketing gyrations, I am back here to report to the citizens of Menifee, Temecula, Murrieta, and Wildomar on real estate.

To start off, my headline says it all. So..um...see you guys next update report!

Ok, I am feeling a little silly today but you really have to have a sense of humor for this market because there is a lot of misconceptions floating around with Menifee real estate buyers and sellers alike. The biggest one is that this is a buyer's market. It was as buyer's market at the early part of the year. There were homes that actually were available and went at or under asking price.

That has changed quite a bit. For instance, this weekend I wrote 6 offers for 3 different couples trying to buy Menifee or Murrieta real estate. Each couple has already been burned at least once on trying to buy a home. This is happening for several reasons:

1) Pricing is artificially low - Banks have changed from an incremental, "lower the price until it sells", to an immediate "price it cheap and get multiple offers" strategy. This is painful because it creates a false sense of the real value of properties on the market. How do I explain to a buyer that the incredible pool home at $350,000 already has 7 offers on it and is really going for around $400,000?

Often buyers refuse to believe that because they can look online and see more properties priced the same. However, those properties also have multiple offers but are left active which is very deceptive. Once they close, you will see that they go for much higher. The banks love it because they get to pick the best candidate (all cash or big down) over a 3% FHA buyer. Trust me it happens. One offer I wrote this weekend was refused for being a VA loan. And the end result is all this artificial pricing creates a trust gap between agents and buyers.

2) Competition is hit or miss - the only competition for the bank properties are other bank properties and short sales. While short sales are a lot more work than Murrieta REO (otherwise known as bank-owned) properties, they are still getting multiple offers. Five of the six offers I wrote this weekend were on short sales. These are more often than not the buyer's heartbreakers. Personally, we need to do something with how agents are marketing the properties. The downside is it is really the banks that are dictating agent marketing strategies.

But the major rub is that very few tradional Menifee sellers can actually compete at these prices. So by default finding an actual "real" seller is a rarity. So it definately isn't a seller's market.

3) Banks just don't care and really can't afford to - Now, I sometimes really don't like banks. But that is because my expectation is that they care at times-which is my own flaw. They don't care about buyer's at all, they care about the bottom-line. They want multiple offers so they can pick the best horse so to speak. The people working at the bank are employees who have never owned or seen that home. At the end of the day they go home and live their life while buyers bite their fingernails about getting the perfect Menifee home.

It isn't really the banks fault, it is the economy. However, if you have a market where the main sellers could care less about buyers, you really can't refer to that as a buyer's market. And honestly, the banks are just about 90% responsible for the current woes in the housing sectors no matter how you slice it.

To sum up, a true buyer's market is when sellers are baking cookies to make the house smell delicious for the one buyer they have viewing their Menifee property on a Saturday. Yes, that really did happen at one point.

Those three points are my way of presenting the Menifee real estate market as it appears to me. Buyers are often misinformed on price, real sellers can't compete on price, and 98% of the market is bank-owned or short sale properties. So if it walks like a duck, talks like a duck, it's a duck and we are definately in a banker's market right now.

This is all bad news Stefan, you are bringing me down! Not so, says I! There is plenty of opprotunity but you have to be able to see it and make it work for you....

The biggest battle in Menifee's real estate market today is both buyer and sellers need to understand the current market conditions and players and use that knowledge for their success.

If you don't know the game or the rules, it is very hard to play. But some smart investors, young couples, and large families have all played it well recently and will benefit significantly in the long run as interest rates start to climb.

I hope that this post was informative for you and I will try my utmost to give informative updates each month.

Sincerely,

Stefan West
Diversified Realty
951-894-6199
Temecula, Murrieta, Menifee, and Wildomar Real Estate

MENIFEE/ SUN CITY UPDATE

Things are selling here in Menifee and Sun City. As of May 1, 2008 we have had 152 homes go into Escrow. In Menifee the low was 149,000 and the high was 570,000.

Holly Kay
Broker Associate
Prudential Canyon Lake Realty

"You Snooze... You Lose!" Deal of the Week

(yes that's a pool you see)

7601 Ethan Allen Way, Sun City

(cross-streets: McCall/Chatham)

5 bed 3 baths
2,209 sq. ft

Built in 2000

List price: $249,000
Sold price: $258,250
Days on the market: 2

Last sale price: $540,000 on 12/6/2005

Granite kitchen countertops, 3 car garage with epoxy flooring, RV Parking, Swimming Pool and Spa (and artificial turf - no water "run-off" tickets here!)

Can you say "SCORE!"

Do Short Sales Sell?

As 90% of the families that I talk to in Menifee, who are looking for rental homes, are going through foreclosure, I am frequently asked questions about the foreclosure process and asked to explain about Short Sales.

WHAT IS A SHORT SALE?

A Short Sale is the sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. In lieu of the house going into foreclosure, some lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments.

For a more in-depth clarification about Short Sales, this is a good article: http://homebuying.about.com/od/4closureshortsales/qt/112707_QualSS.htm


DO SHORT SALES SELL?

In my opinion, not as often as they should.

Today I reviewed 100 Menifee homes for sale on the MLS, price ranged $185,000-$244,000. Of these, 40 were Bank Owned, and 53 were Short Sales.

Next I reviewed the 51 MLS properties sold in Menifee from 5/1/2008 - 5/26/2008. Of these, 43 were bank owned (REOs), and 3 were Short Sales.


Based on the above, speaking speculatively, if 50 in 100 Menifee homes for sale are Short Sales, only 6 in 100 actually end up selling.


MY OWN SHORT SALE EXPERIENCE

Back in October I had a Short Sale listing, 2 bed/2 bath house, 1040 sq' in Rustlers Ranch. We had an offer in at $205,000. The owners owed less than $250k. It took the lender, Nationstar, almost 8 weeks to verbally counter back at $250,000. I sent the bank comps which strongly confirmed that $205k was a good offer, but Nationstar didn't listen. Well, of course the buyers backed out, the property went back to the bank in December, my clients negotiated a Cash for Keys, and the house came back on the market on 2/20/08 at $185,000.

Here is the kicker. 97 days later, this Nationstar property STILL has not sold, and is currently listed at $179,000.

Some lenders get it, some don't.


Here are three MENIFEE SHORT SALES THAT SOLD this month:

28535 Heather Green Way, Listed at $289,000, Sold at $287,000, 58 DOM
29322 Rock Vista Drive, Listed at $199,999, Sold at $258,950, 54 DOM
28700 Sunridge Court, Listed at $240,000, Sold at $292,000, 97 DOM

For more details on these Menifee Short Sales, go here:
http://www.teamdadanddaughters.com/default.asp_Q_f_E_cpg_A_pg_E_MenifeeShortSalesthatSold
For more details on Menifee homes sold this month, go here:
http://www.teamdadanddaughters.com/default.asp_Q_f_E_cpg_A_pg_E_MenifeeHomeSales-MonthlyReports

Short Sales do sell, and although the current numbers are low, I personally believe that the lenders and buyers will start responding better to these Short Sale listings. Not all properties and/or owners are good candidates for Short Sale. A Realtor, who is EXPERIENCED in Short Sales would be an excellent resource in determining this.

A big advantage in buying a short sale, is that you usually don't have to compete with multiple offers. I truly believe there are great buys to be had in the short sale market. If you want to buy a Short Sale, though, above all, you need PATIENCE. Patience, and hope, that good things come to those who wait.

Cynthia Aina
New Vista Realty
REO & Leasing Specialist
http://www.menifee4rent.com/