Two More Ocean Front Mansions

Two more houses enter that the rare $30 million market or more in the last month. One is Corona del Mar and the other in Laguna Beach.
That brings the number to six in the Orange County area.

You could own one of these breathtaking, Water Front homes One at 3729 Ocean Blvd. Corona del Mar and has been completely remodeled, the home is 3 stories and is carved into the sea front bluff.

The other is at 31887 Circle Dr., Laugun Beach and has approximetly 80 feet of beach frontage. Remarkably the home has a 270 degree view of the ocean.

For the other listing in this rare luxury home mansions just look on the website.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

The Inventory Is Low In Orange County

There are fewer homes on the market than there were a year ago that is why the inventory is low in Orange County. Local experts typically note this time to have the market take off. The homeowners that took there homes off the market for the winter are considering re-listing them.



The problem locally is that there are more buyer than sellers at this time. This is especially true at the lower end of the market. The demand for homes has been very high for several months now. The real problem is too few homes are coming on the market.



Demand has jumped up over 28 percent in recent weeks. Highest since 2005 so hold on to your hats we could be in for a wild ride.



Too get out and start looking for property just give us a call.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Market Report for the Mission Viejo Area

This weeks market report for Mission Viejo and surrounding areas shows that Orange County Median Prices for the resale homes were up 16.7 percent, for new homes it is up 14.8 percent and for resale condos up 13.2 percent. The sales volume is up for resale homes 7.6 percent and up 3.3 percent on condos and up 48.0 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are up 12.7 percent and the sales volume is even 0.0 percent.
• Mission Viejo Zip Code 92692 sales prices are up 7.0 percent and the sales volume is up 61.5 percent.
• Aliso Viejo sales prices are down 7.9 percent and the sales volume is up 35.0 percent.
• Laguna Niguel sales prices are up 40.2 percent and the sales volume is up 49.0 percent.
• Rancho Santa Margarita sales prices are up 36.7 percent and the sales volume is up 4.8 percent.
• San Clemente Zip Code 92672 sales prices are up 12.7 percent and the sales volume is up 72.2 percent.
• San Clemente Zip Code 92673 sales prices are down 2.4 percent and the sales volume is up 7.1 percent

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Do I Ever Get My Credit Back

Do I ever get my credit back?  It has now been a few years since many people have had to sell with a short sale and have gone through a hard ship and don't know when they may get back into a home or how long it takes before the lenders will consider them again



When it comes to repairing credit and applying for a home loan the underwriting philosophy can be summed up in one phrase. "A period of financial difficulty in the past does not necessarily make the risk unacceptable if a good payment record has been maintained since". The key after going through financial hardships is to establish new credit and to maintain it. This can't be stressed enough.



Government agencies that underwrite and insure loans have timelines after a specific credit altering event before a potential homebuyer can be approved for a home loan. As an example, with foreclosures, died-in-lieu and short sales the time frame with FHA is 3 years. For bankruptcies the timeframe is 2 years. Conventional loans are 2 to 3 years longer in most cases. There are extenuating circumstances that would allow the borrower to be approved in a shorter time period but those approvals are very difficult to come by.



Sometimes borrowers do not have any credit which also can make getting a home loan challenging. The standard industry guidelines request everyone to have a minimum of 12 months of credit history on three traditional credit references. These would be auto and student loans along with credit cards. When a borrower does not meet the minimum standard then FHA allows lenders to establish a nontraditional credit history.



If the borrower does not have any revolving or installment debt on their credit report the lender is required to substantiate payments to other credit references. These may include: rental housing, gas company, electricity, water, landline home telephone service and cable TV. 12 months of cancelled checks are generally requested. In addition, insurance bills, furniture payments, medical bills and cell phone services may also be utilized.



Establishing and maintaining good credit has become more important than ever before when applying for a home loan.  If you would like to try and purchase call us and we will see what we can do.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Why Shouldn't I See If Prices Drop Further Before I Buy A Home?

I sure you have a few buyers sitting on the fence and thinking I can just sit until I am sure we get the lowest price for a home. They may ask, "Why Shouldn't I See If Prices Drop Further Before I Buy A Home?"

Some may not believe that housing prices have stabilized and have shown improvement in the most affordable price ranges. New home builders are beginning to slowly release new products to the market here in Orange County. As the economy stabilizes further gains of improvement will emerge for housing.

The Federal Reserve has already been making public statements on their policy for not letting inflation run up as the economy begins to improve. They control inflation by raising interest rates to tap the breaks on the economy, not letting it pick up too much speed. The Fed's purchasing of $1.25 Trillion in mortgage-backed securities campaign is about to end March 31, 2010. The result of the government program has been lower interest rates.

With the current state of affairs with both housing and the economy it's not realistic to think interest rates will rise quickly soon. However, it was a little over two years ago when rates were two-percent higher. Chances are over the next two years interest rates will increase and, as they do, the cost of the financing is added to the total cost of the home.

Most borrowers think of the higher monthly payment as rates rise but the long term cost of loan increases dramatically as well. Let's say for an example a borrower purchases a home for $500,000, puts twenty-percent down and gets a loan in the amount of $400,000. These two examples show what the additional costs would be financing interest rates two-percent higher.

• Interest Rate: 4.875% Monthly Payment: $2,117
• Interest Paid after 5 Years: $93,669 10 Years: $178,156 30 Years: $362,060
• Total Cost of Loan: $762,060

If 2 percent higher

• Interest Rate: 6.875% Monthly Payment: $2,626
• Interest Paid after 5 Years: $133,682 10 Years: $257,559 30 Years: $545,977
• Total Cost of Loan; $945,977

Difference of the monthly Payment: $511

Difference of Interest Paid:

• after 5 Years: $40,013
• after 10 Years: $79,403
• after 30 Years $183,917

Another way to understand how interest rates can affect a borrower's ability to purchase a home is to compare the payments to the purchase price. In order for the borrower to keep his payments the same if interest rates went up two-percent he would need to lower the sales price by twenty-percent, using the example above. The rule is for every one-percent higher in the interest rate the purchase price would need to be lower by ten-percent in order to keep the monthly payments the same.



Now is the best time to purchase a home here in South Orange County.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Mission Viejo Area Market Report

This weeks market report for Mission Viejo and surrounding areas shows that Orange County Median Prices for the resale homes were up 19.9 percent, for new homes it is up 31.6 percent and for resale condos up 13.5 percent. The sales volume is up for resale homes 8.0 percent and up 14.8 percent on condos and down 8.4 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are up 8.2 percent and the sales volume is up 23.9 percent.
• Mission Viejo Zip Code 92692 sales prices are up 6.4 percent and the sales volume is up 48.3 percent.
• Aliso Viejo sales prices are down 18.3 percent and the sales volume is up 34.3 percent.
• Laguna Niguel sales prices are up 18.0 percent and the sales volume is up 14.8 percent.
• Rancho Santa Margarita sales prices are up 20.8 percent and the sales volume is up 17.1 percent.
• San Clemente Zip Code 92672 sales prices are up 18.2 percent and the sales volume is up 70.0 percent.
• San Clemente Zip Code 92673 sales prices are down 2.3 percent and the sales volume is down 11.1 percent

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Citi Offers Alternative to Foreclosure

Citi offers new ideas to homeowners to on the verge of foreclosure that counter them leaving. Citigroup is asking the homeowner to give up the deed to the home and they can live there for six months.



Citi said Thursday that it is lauching the pilot program called "Foreclosure Alternatives", this week in Texas, Florida, Illinois, Michigan, New Jersey and Ohio. So far about 1,000 homeowners are expected to participate. Citi may expand the program nationwide.



The advantage of the program is the homeowner will not have a foreclosure on their credit report and they can live there for six months after the deed transfer. This will be less severe a ding on the credit report.



This is an attempt for Citi to try to handle the growing problem of perople going into default on their mortgages. Remember that one in every three U.S. homeowners owe more on their mortgages than the home is worth.



Under this program Citi will also give the homeowner $1,000 to relocate to a new place to live.



If you are thinking of Short Selling your home call us it will not have a cost to you.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Recount of Special Recall Election Of the Mayor of Mission Viejo

The recount on the recall election of the mayor of Mission was put to a halt by Lance MacLean late Tuesday.



The recount would have cost the Mayor Lance MacLean $600 per day and was due to start on Wednesday. Lance MacLean lost the special election on Feburary 2, 2009 by 19 votes. 7370 voted for the recall and 7351 voted against the recall.



In a letter Tuesday to supporters titled "A Final Message from Lance MacLean", he wrote that it was his "wish to nurture a much needed time of healing in our city by accepting the election results, as slim as they maybe".

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Bankruptcy filings up in Orange County

Bankruptcy fillings for residents and businesses of Orange County are up in the month of January. In fact, according to data from U. S. Bankruptcy Court Central District of California it number of filings hit a decade high.


January's filings (1,269) while the filings for January 2008 were 800. Now, this is truly a record because this is the highest number of filings in a single month since the changes in the federal bankruptcy laws. When the laws changed it made it more difficult to discharge all debts in bankruptcy court.



I see this as a continuation of the problems started with the housing bubble and the recession and loss of jobs. The local unemployment rate at 9.8 percent.



This is not a good piece of information and my show that locally we are not coming out of the recession.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

California Costal Commission Approves Dana Point Harbor Revitalization

The California Costal Commission Approves Dana Point Harbor Changes and the City Cuncil accepts changes to the revitalization plan.



The City Council unanimously gave initial approval to the Coastal Commission's suggested modifications and capped a process started more than a decade ago.



In October, Orange County got the green light to move forward with the proposed $140 million revitalization plan for the land side of Dana Point harvbor.



The biggest changes to the proposal involve the number of boat slips parking and shipyard size.



These changes have been on the County's list of things to do for more than 10 years. The harbor is a 276.8 acre area that the County has spent $15.4 million on the preparation of the revitalization.



If you were thinking of moving to Dana Point give us a call.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

You Can Get Loans on Estate or Luxury Homes

Today we heard that you can get loans for the estate or luxury homes. That is definetly good news for the whole market



Sales of California homes at all price levels increased 16.9% last year, to 460,166 from 393,703 in 2008. However, sales of California homes priced at $1 million or more tumbled for a fourth consecutive year in 2009. The number of million-plus homes sold dropped 23.8% to 18,621 in 2009 from 24,436 in 2008.



Many buyers are under the impression that Jumbo financing is not available because of these statistics. That is about to change. We just heard today that Bank of America, working in conjunction with their financial services division leader, Merrill Lynch, has recently increased their standard loan program guidelines from $3 Million to $5 Million. In conjunction with their wealth management division leader, U.S. Trust, are offering loans to $10 Million for high net worth clients.



These changes are a welcomed relief for the housing industry where it seems more lenders are pulling back rather than expanding. The loan-to-value guidelines under the standard program are as follows:

80% to $2,000,000

70% to $3,000,000

65% to $5,000,000

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Mission Viejo Area Market Report for 2009

This last years market report for Mission Viejo and surrounding areas shows that Orange County Median Prices for the resale homes were down 7.4 percent, for new homes it is dowm 0.9 percent and for resale condos up 13.7 percent. The sales volume is up for resale homes 14.3 percent and up 28.5 percent on condos and down 30.3 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are domn 9.1 percent and the sales volume is up 4.2 percent.
• Mission Viejo Zip Code 92692 sales prices are down 9.1 percent and the sales volume is up 18.4 percent.
• Aliso Viejo sales prices are down 9.7 percent and the sales volume is up 6.5 percent.
• Laguna Niguel sales prices are down 9.6 percent and the sales volume is up 27.4 percent.
• Rancho Santa Margarita sales prices are down 13.1 percent and the sales volume is up 43.5 percent.
• San Clemente Zip Code 92672 sales prices are down 18.3 percent and the sales volume is up 43.5 percent.
• San Clemente Zip Code 92673 sales prices are down 15.3 percent and the sales volume is up 7.1 percent.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Mission Viejo Area Market Report

This weeks market report for Mission Viejo and surrounding areas shows that Orange County Median Prices for the resale homes were up 17.6 percent, for new homes it is up 27.4 percent and for resale condos up 13.7 percent. The sales volume is up for resale homes 8.0 percent and up 14.3 percent on condos and down 3.2 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are up 5.4 percent and the sales volume is up 24.4 percent.
• Mission Viejo Zip Code 92692 sales prices are even 0.0 percent and the sales volume is up 13.5 percent.
• Aliso Viejo sales prices are down 11.7 percent and the sales volume is up 44.8 percent.
• Laguna Niguel sales prices are up 12.7 percent and the sales volume is up 25.5 percent.
• Rancho Santa Margarita sales prices are up 18.7 percent and the sales volume is down 20.5 percent.
• San Clemente Zip Code 92672 sales prices are up 4.1 percent and the sales volume is up 47.6 percent.
• San Clemente Zip Code 92673 sales prices are down 2.3 percent and the sales volume is up 25.8 percent

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Irvine Company Speeds Up Home Building

Did you see where the Irvine Company speeds up home building due to the demand 
Irvine Company bet that there was an appetite for new homes and it has paid off and they are now their program speeds up the home building. They bet that new homes would have an appeal in this market and 70 new homes were sold before Saturday's grand opening of two new comunities in Woodbury and Woodbury East neighborhoods. They believe that with just 10 days they could hit 100 new homes sold.



In the whole of Orange County the DataQuick reported an average of 124 new home sales a month. The Irvine Company got off to a very quick start last Saturday. The response was so good that they were forced to speed up the new home building.



The Irvine Company is funding the construction of the homes with the builders concentrating on building and selling the homes.



If you wanted to know more or want to go see these and other homes the Irvine Company and their builders are creating contact me.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Lake Forest Got the Biggest Rent decrease in Orange County

The tenznts in Lake Forest got the biggest rent decrease in Orange County on average. The tenants in the Lake Forest got an average of $173 a month off their rent during the fourth quarter of 2009. That is an average rent cut of 11.4 percent according to apartment tracker RealFacts.




The average rent in the city is $1,347 a month compared with $1520 in the fourth quarter of 2008.



The $173 cut compares with an average decrease of $105 in the USA. The statistics show that all 23 cities have decreases in rents.



The other cities high on the list of rent reductions are Brea, Aliso Viejo, Orange, Placentia and Fullerton. However, Newport Beach had the most stable rents with only a $43 per month drop.



If you are tired of paying rent to someone, it is the perfect time to buy.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Signed Real Estate Contracts Inch Up In December

The number of people who have signed real estate contracts (pending sales) to purchase a home has increased or inched up in December which is an increase of 9 of the last 10 months. According to the National Association of Realtors seasonally adjusted index of sales agreements rose 1 percent form November to December.



This increase was a little bit lower than analysts expected.



The real estate industry is hoping the recovery will continue, If the trend is up now it sets the stage for the season opening in spring. The challenge is the high unemployment, raising foreclosures and tight lending standards.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Did You Know?

Did you know that Orange County has 4 Cities with home price gains?

Good news. Orange County has 4 of the top cities in the state for price gains for existing, detached single family home in California, according to the California Association of Realtors.

At the top of the list is Laguna Hills, with a 62.9 percent jump. San Juan Capistrano had a 37.2 percent gain while Tustin had 27.1 percent gain. The there was Costa Mesa folled with a 17.3 percent gain.

In Orange County:

The median price for Orange County went down in December up 12.1 percent when compared to Dec. 2008.

Sales were up 17.9 percent when compared to Dec. 2008.

Unsold inventory was at a 5.4 months.

Average time on the market is 33 days.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

(949)282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Bright Future Is Seen By Executives in Orange County

Executives in Orange County see bright future.  Four executives in Orange County representing banking, fast food, high tech and housing all see a bright future and expect a turn around this year and see it as a bright future. Paul Folino, executive chairman of Emulex Corp spoke at Cal state Fullerton's Mihaylo College of Business and Economics.



He stated we need to be prepared to win the game when the recession ends. Other pannelists were Dan Young, President of the Irvine Co.'s Irvine Community Development Company LLC. Glenn Gray, President of Sunwest Bank. and Bill Sanderson, president of fast food service company Golden State Service Industries.



Folino sees bright future for the entire tech sector. He thinks it will be tech that leads us out of the recession. Gray stated the banking industry had a total meltdown but he is optimistic. He stated that Orange County looked very health right now.



Sanderson sees the recession as an opportunity while competitors pared down they made strategic acquisitions.



Young stated it has been as bad as it gets, but they are going to step out in this market. The company is opening 21 model homes this weekend. It is the biggest rollout since 2005.



Here are some local big names moving out into the market. Bold moves to win the game.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Why Is His Loan Lower Than Mine????

Many people ask  why is my friend (his) loan  lower than mine.

When a borrower is shopping interest rates for a home loan the two most important factors will be the loan to value and the borrower's middle credit score. The lower the loan to value and the higher the credit score the better the interest rate will be. Obviously, this is because the risk factor is less to the lender when the borrower is putting down more and has excellent credit. If the borrower has a small down payment and lower credit scores then the interest rate will be higher.

When lenders close the loans and put them into mortgage-backed securities they sell them off usually to FNMA and FHLMC. These two agencies have pricing adjustors that are either added or subtracted to the price of the securities they are buying. The adjustors are to compensate investors who buy the securities for taking on additional risk.

The most common items adjusted for are: loan to value, credit score, occupancy type and type of property. The areas of low risk are large down payments, high credit scores, owner occupied properties and single family homes. Areas of high risk are small down payments, low credit scores, investor loans, condominiums and units. As an example the interest rates, with no points, for purchasing a single family home with 20% down, a loan amount of $417,000 and owner-occupied please note how the rates change for every 20 point change in the credit score:

640 = 5.500%, 660 = 5.375%, 680 = 5.250%, 700 = 5.125%, 720 = 5.00%, 740 = 4.875%

In this same example if the borrower put down an additional 5% the interest rate in most cases will improve by .125%.

When an investor (non-owner occupied) wants to buy a single family home with 20% down with a loan amount of $417,000, credit scores will also affect the interest rates.

740 = 5.500%, 680 = 5.875%

If the investor puts down an additional 5% the following applies:

740 = 5.25%, 680 = 5.500%

That is why when borrowers are shopping for a home loan they often say, "My friend just got a loan and the interest rate was lower than what the lender is quoting me. Why is that?" We have to explain the above not to mention the fact the interest rate market changes day to day.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!