South Bay Homes and Real Estate

As the California housing market continues to crumble in the majority of its cities, property owners here in Torrance are anxious about what could happen to their investments and families.

For South Bay homeowners there are some guidelines that can be followed to keep you ahead of the curve in regards to the weak market.

To begin with, contact Torrance City Hall tax office to analyze your current tax situation (for Torrance property). This will allow you to learn what your local government officially believes to be the value of your Torrance property. Compare this figure to the current market value of your home by looking at nearby homes that sold in Torrance. It is fairly common, especially in some locations for homeowners to find that they are paying excess property tax, based on their present home value.

In certain states, taxes are up to 40% higher than the owner should actually by paying. If your true home value is hard to determine, feel free to contact an expert in Torrance real estate sales. Alternatively it may be wise to invest in an appraisal to answer the question with finality. These steps will give you a realistic perspective of your Torrance home value and ensure that excess taxes are not an issue.

If you are struggling with an adjustable mortgage, refinancing to a fixed mortgage may be your best option. Before the refinance occurs, you should make sure several things are in order.

• Become familiar with your mortgage rules and restrictions and find whether or not restrictions exist for an early repayment of the loan. Though you will have a new mortgage, the refinancing process takes care of the old loan. However, be wary of penalties and fines. I would estimate that 70% of the loans taken out by Torrance home buyer in the last 2 years do indeed carry a pre-pay penalty.
• In certain situations, homeowners here in Torrance and elsewhere may need to repay more on your loan than the actual value of your property. This a common issue for buyers who received nonstandard loans during the market boom, when lenders almost freely gave away mortgages.
• Many homeowners are faced with the reality of a huge mortgage payment, on a property that has lost significant value. Though the market is expected to rebound in 2009, the best option may be to exit the bad financial situation and start over.
• You must think about the length of time you will be staying in in your Torrance home and whether or not the time will compare to the closing costs necessary for a refinancing. While many companies offer ‘no cost’ refinances, these deals always feature tight restrictions and guidelines. The cost of refinancing is typically added into the actual loan under this agreement. Instead of an upfront payment, you will pay interest on a larger loan, which results in more money, long-term. Investigate any perspective mortgage companies to find their reputation and consumer reviews.

We are here to help you determine if buying or selling Torrance real estate is the right decision for you. Please call me immediately at 310-809-0203 for a free consultation. I look forward to meeting you!

Additional Reading:

Torrance BPO for Dummies: Understanding the home foreclosure process
Foreclosure & Fixer Homes for Sale in Redondo Beach, Torrance and San Pedro
Shocking Report Shows Litton Mortgage May Not Be Satan’s Beast Predicted in Book of Revelations (But chances are still good, it actually is).