South Bay Homes and Real Estate

How can I make this go away with the least amount of work, expense and disruption to my life?

a. Well, no surprise here, the simplest solution is to Pay-up. Often that means everything – arrears, penalties. fees. If that simply isn’t in the cards, here are the various solutions ordered from least to most dramatic: 1. Loan Modification. 2. Short Sale. 3 Bankruptcy 4.Walk away.
b. To learn more about the pros and cons of each solution, contact me today for a free consult.

How can I get a true overview of my situation – not just the solution put forth by someone who stands to benefit from selling that solution?

a. That’s a tough one, for sure. Here is the solution I’ve come up with to overcome this problem: 1. Contact me for a free 20-minute consult (in person or on the phone) – No obligation. 2. Buy an in-home 90 minute educational workshop from me. I present every single option, explain them thoroughly and leave you with a list of referrals and recommendations. The cost is just $149. This appeals to folks who know the value of expert advice but don’t want to take advantage of an expert’s time without fair compensation. There is no further obligation and I don’t sell any services.

How much time do I have before a default becomes public record? …before my house can be sold at auction?

a. As soon as you are 90-days late your default becomes public record and is available to anyone at the County Registrar’s office. Actually that’s probably how you and I got in touch! Unfortunately, it’s also how hundreds of scammers and loan sharks will also probably get your name and attempt to take advantage of you.
b. Once the NOD is filed you have 90-days before your home can be scheduled for auction. Please, move quickly as your options dramatically diminish as the deadline approaches.

What exactly is a Notice of Default and a Notice of Trustee sale?

a. Both are fancy names for very simple documents. The Notice of Default or NOD is just a public notice you are at least 90-days late on your mortgage and officially you are now in foreclosure.
b. The Notice of Trustee Sale or NTS is simply a public notification that your home has been scheduled for sale. It can be filed no sooner than 90 days after a Notice of Default or NOD.

Who knows about my situation and how do they know? Do my neighbors know? Are my relatives notified?

a. Anyone that tracks public records is alerted when an NOD is filed against your home. Unfortunately, other than myself, almost everyone that tracks these records does so because they hope to take advantage of you. That is why I am so committed to contacting you and providing a trustworthy source of info to homeowners who live near my office. As for your neighbors, relatives and friends – they probably do not know yet. However, take action soon or your neighbors will soon be contacted by scammers trying to get information about you and your situation.

Who are these people sending me letters and knocking on my door? Can I trust them?

a. 99% of the mail solicitations, doorknockers and phone callers are from ‘professional investors.’ These folks have all kinds of agendas that range from downright bizarre to flat-out illegal. They are not trying to help you. The other 1% are Realtors and Bankruptcy attorneys and so on. Unfortunately, the folks who can actually help are the rarest and the least aggressive in efforts to contact you.

Can I do this on my own? Should I hire a realtor, a loan modification firm, an attorney?

a. Sorry to be opaque, but the answer is, ‘it depends.’ You can get through this yourself but not without some very sophisticated knowledge. It’s your choice if you educate yourself or leverage the knowledge and experience of an expert. In response, I’ve developed a multi-pronged approach – with books, audio and video available for the Do-it-Yourselfers and a full service branch designed for executives who prefer to pay for the tsunami of experience and expertise that only a professional can deliver.

I have received a Notice of Default. What happens now?

a. Now you are in foreclosure. Foreclosure is a process, not an event (as it is mostly commonly misunderstood). Now your mortgage default is public record. Additionally, a 90-day countdown has begun at the end of which your home will be scheduled for auction. Unless you can send the bank a lump sum of all the money you owe …you now need a professional to stall the foreclosure because no option available to you can normally be completed before the auction date.

What will happen if I simply do nothing and ignore the problem?

a. 90-days from now you will receive a Notice of Trustee Sale…21 days after that your home will be sold at auction. Soon after, the sheriff will be dispatched to escort you off the property. The locks will be changed. Doing nothing needlessly and seriously damages your credit scores as you will get an “F” on your record (Foreclosure) that stays there for 7 years. Even if you do not care about that right now…believe me, in the future you will regret it – especially because there are better options available for you now.
How much does a loan modification cost? How long does it take? How does it work?

a. The only price of a Loan modifications is the time and energy required to get the modification. With preparation you can apply in as little as 60-minutes. But count on 30-90 days before you can expect to get a response. A loan modification is basically a mutual agreement between you and the lender to change the original terms of your mortgage.

How much does Bankruptcy cost? How long does it take? Will it stop foreclosure?

a. Costs vary greatly – it seems to me that most folks pay $3000-$4500. It definitely stops the foreclosure … but only temporarily. It is not a permanent solution in and of itself. Courts are increasingly sensitive to abuse of the BK system as a simply foreclosure stalling tactic.

How much does a short sale cost? How long does it take? What is it?

a. The good news is that a short sale is free to the homeowner. It’s kind of ridiculous but currently lenders require full payment of arrears for a loan modification but they will cancel the outstanding debt and the arrears if you sell your home. Talk about a broken system, huh? If you have no equity (or negative equity) in your home selling your home short is by far the best solution. The bank even pays us to actually sell the home for you. You don’t bring a dime to the closing table. It is incredible. Short sales do take time. Count on at least 90-days. The good news is most people stop paying their mortgage when they decide to sell short. So most people get to live 3-4 months w/no mortgage payments.

What is involved in simply ‘walking away’ from the property?

a. Letting the house go to foreclosure – letting the bank take the property – can be the best course of action, depending on the situation. But should always be a last resort. The biggest downside is that you incur a foreclosure on your credit report – probably the worst mark of all…I call it the credit report “F” word. Also, in some cases lien-holders retain the right to pursue deficiency judgments against you. In other words, even after the house is gone it might not be over.

14. Can I somehow stall the foreclosure process?
a. Yes. There are several legal administrative ways to delay the foreclosure process. In this housing meltdown the banks are so swamped with “loss mitigation” activities that they are willing to delay the process for many good reasons. This is an area where an expert’s knowledge can literally save you from losing your home.
15. What is the least public (least embarrassing) solution?

a. Pay-up catch-up. Immediately. Next, a loan modification. Next, a short sale. Next, foreclosure auction and or bankruptcy.
16. Can I refinance?
a. I can almost say with near certainty the answer is, ‘no.’ These days no lenders will refinance more to more than 80% of your homes current market value…and trust me, your home’s current market value will probably shock and anger you. Also, in the past year have you been late in your mortgage? If Yes than forget refinancing. It’s not an option.

17. Does the Notice of Default hurt my credit score? What are the credit score implications of the various solutions?

a. The NOD does not, in itself hurt your score. In fact, it is not reported to the credit bureaus. Your credit is marred when you miss payments or pay late.
b. A loan modification usually requires at least a 60-day late and takes 1-3 months…so count on at least a 100 point credit hit.
c. A short sale can actually be completed without being late on one’s mortgage…theoretically it’s possible to complete a short sale without hurting your credit. But that depends on how the bank reports your cancelled debt.
d. A bankruptcy is a credit score nuclear bomb – depending on real estate involved, assets and liabilities.

Will the bank reduce the principal on my home?

a. No. Sorry but please don’t hate the messenger. Commercials, advertisements and solicitations that promise to negotiate a principal reduction are misleading at best and bold-faced lies at worst.

I am embarrassed. Am I the only one around here going through this?

a. Over 1 Million Notices of Default have been mailed in the last 90-days…so, no, you are not the only one. And yes, that includes thousands of people right here in Palos Verdes and the South Bay.
b. The housing meltdown has set us back to pre-2002 prices – and that is being conservative.
c. I recommend you take those strong emotions…embarrassment…and use them to motivate you to take action to get through this tough time and not fall victim to it. Taking action will not only make you feel more in control, it will also open-up workout solutions for you that passive, complacent homeowners will not have.

Should I worry about the bank garnishing my wages?

a. Yes. You should worry about that…it is humiliating. However, it’s probably a long way down the road from where you are now. By taking action now you can reach a workout solution with your lender WAY before it gets to that. Garnishment of your accounts / wages is legal only after the lender has actually gone to court to get a judgment against you and you have appeared to clarify your income and assets to the court AND has given you formal notice of their intent to apply the garnishment order.

Can the bank take my other assets? Boat, Car, 2nd home, 401K, etc?

a. That depends largely on where you live! Here in Southern California (and 33 other states) we live in what’s called a non-judicial foreclosure state. Among other things, this means the lender on your home loan does not have recourse to assets other than the home itself. Now, there is an important caveat to that. Home Equity loans or HELOCS are considered lines of credit – basically a credit card. They do have the ability to seek recourse – even after the house is long gone.

I have heard that banks do not want to own my house? Why won’t the bank agree to just give me 6-months w/no payments or let me pay just a couple hundred or a couple thousand dollars per month?

a. In effect, that is what they are doing with loan a modification.
b. Much has been made of banks not wanting to own property. While this is true it’s not the whole story. While banks may not prefer to own property, believe me – they don’t mind it a whole lot either. For them it’s just another day at the office. Banks have long had entire departments dedicated to disposing of REOs – basically real estate the bank owns. While imperfect, REO departments are well oiled machines that dispose of properties predictably.

What are the tax implications of the various solutions?

a. For a loan mod and bankruptcy there are no significant tax implications.
b. In the past, short sales have resulted in large amounts of taxable ‘forgiven’ debt. However, new laws and several important exclusions now have reversed that for most of our clients. It is very much possible to sell your home short and incur no negative tax consequences. But this isn’t legal advice and you MUST consult a licensed CPA.

Yes, buying a new home is stressful. Buying a new home in an unpredictable market can bring a whole new meaning to the word.  Albeit, you’ve heard about the opportunities in foreclosed properties, but not sure if this is the right path for you. Here are some hints on how to invest in Rancho Palos Verdes foreclosures.

1. Ask your real estate agent about the Rancho Palos Verdes foreclosures and of any they know about. Some people will try to tell you that a real estate agent isn’t the best source for foreclosure information, but they usually have the best insider tips!

2. Research the history of the Rancho Palos Verdes foreclosure property to make sure that it can be bought without fear of the owner’s buying it back within a pre-determined window. The last thing you want is to buy a house and then have to move again two months later!

3. Always buy Rancho Palos Verdes foreclosures from the bank itself and not from the seller. Sellers are usually able to regain ownership of the property, but if the bank has possession, it has passed the window stated above.  

4. Be prepared to place an offer or purchase a home before seeing it in person. Most foreclosures are not open for inspection by potential buyers. While purchasing a foreclosure property can absolutely save you money, you run the risk of purchasing a home in serious disrepair!

If your thinking of exploring your options with any foreclosed home, talk to a real estate expert first. An agent can inform you on the neighborhood your potential home is in and about the home’s ownership history. Also, real estate agents are likely to have insider tips to help you get the best deal possible!  

For more information on Rancho Palos Verdes foreclosure or any foreclosed home, contact the real estate experts at Rocky Rockwood! Dial 310-809-0203 or e-mail ryanrockwood@kw.com to set up your appointment today!

By now, you’ve probably heard all about flipping real estate for a profit, but have you considered other ways of using real estate investing to make money?  Here are five South Bay real estate investment methods that can also make you quite a bit of money.

#1:  Buy a large piece of not yet developed South Bay Real Estate, split it into lots and sell it.

This method will earn you an extremely large return on your original investment.  The downside is that it can take quite a bit of time to sell off each of the lots.  This means your capital can get tied up for quite a bit of time.

#2:  Turn a larger house into a into a boarding house.

Boarding houses can earn you quite a bit of money because you are renting out individual rooms instead of renting the whole property to a single person or company.  The downside is that you might end up losing money during down time when the boarding house isn’t full.

#3:  Invest in Torrance Commercial real estate.

The longer term triple net leases mean that you won’t have to do a lot of site management and will provide you with a larger return on your original investment.  The problem is that commercial real estate can be a tough market to get started in, and you can lose quite a bit of money while you wait for someone to lease your storefront.

#4:  Purchase a Torrance home, live in it and then sell it.

The biggest advantage to this is that when you actually live in the home before you sell it, you won’t have to pay as many taxes on your profits.  The downside to this South Bay real estate investing method is that you will have to move quite a bit and that can be rough on you and your family.

#5:  Purchase an outer lying piece of South Bay real estate and then sit on it.

Eventually the property values on the land you have purchased will go up and you can make quite a large return on your original investment.  The problem is that the market isn’t predictable and you could end up sitting on a vacant lot for quite a long time before you can make a profit. 

Flipping houses is one of the best way to make a profit in Torrance real estate. The Rocky Rockwood team has experience in real estate investing and is happy help you decide which method is best suited to your financial situation. For a free and complete financial consultation, call 310-809-0203 or e-mail ryanrockwood@kw.com to set up your appointment.

The Importance of Lawyers in Real Estates for Your South Bay Real Estate Transactions

The growth of the South Bay real estate market has accelerated over the last couple of years, causing
the skyrocketing of related real estate prices. Therefore, if you’re one of those who still haven’t secured your dream property in the South Bay area — that sprawling home in the Palos Verdes Peninsula (Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills and Rolling Hills Estates) or top-of-the-line condominium in the Beach Cities (Manhattan Beach, Hermosa Beach and Redondo Beach), then you must hurry. Investing in real estate is an excellent opportunity to gain profits from reselling as prices continue to soar in the South Bay. After some years, you can resell the same South Bay property at a higher price.

Read Also: Important components of your South Bay Real Estate Closing

Regardless of the role you play – buyer or seller — in the South Bay real estate process, each transaction requires having to deal with a variety of legal requirements. The federal government and the state have regulations and laws that guide the conduct of the real estate market. Knowledge of the law, clearly, is an advantage in real estate transactions.

Read Also: Finding a Good Real Estate Lawyer for Your South Bay Real Estate Business

Each party signs a wealth of legal documents during real estate transactions. Often, these contracts and other agreements include complex clauses that may require the need for legal expertise for interpretation. Moreover, negotiations as regards the inherent benefits and responsibilities in the contract often occur. Lawyers may be necessary to successfully go through this negotiation process, as for many individuals, negotiations are not only difficult but also scary.

Read Also: Torrance Real Estate : Foreclosure Scams and How to Avoid Them

California Real estate lawyers, however, have had experience and training not only in interpreting legal clauses but also in negotiating agreements. They help you, whether you’re buying or selling property in South Bay, by facilitating the smooth progression of your transaction. Many have come to realize how real estate lawyers are to any real estate transaction. As such, real estate lawyers have been mainstays in many negotiations.

Things Lawyers in
Real Estates Can Do

Lawyers can do a variety of tasks to help facilitate the progression of the deal successfully.

• Lawyers can offer legal advice and representation in
  courts to their clients. Often, they can suggest an optimal plan regarding ways
  for you to ensure maximum profits from any real estate property you hold. These
  real estate lawyers are capable of handling both commercial and residential
  properties in the South Bay area, regardless of the nature of the concern:
  buying, selling, foreclosure, domain disputes, mortgage negotiations, leasing,
  zoning, and even the allocation of commercial property.
• Transferring property to another individual requires the
  creation of a representative illustration of the land for execution and
  delivery. Your lawyer may be able to tell you the limitations and freedoms you
  have regarding what to do with the property you own. He or she can clarify what
  rights you hold, so that you may be able to avoid errors or avoid being
  exploited in future disputes that may require you to appear in court. A real
  estate lawyer may also help you assess the South Bay property and give you a
  ballpark figure regarding costs associated with the transactions you intend to
  pursue.
• These real estate legal experts are equipped with the
  experience and education to apply the appropriate laws and resolve issues. This
  only proves the argument as to why real estate lawyers are an absolutely
  necessary service that you must hire should you pursue any real estate
  activities in the South Bay area.

Market Rebound – When is the big question!

A large number of homeowners here in Torrance are analyzing the current housing market and asking how much farther the market will fall before it rebounds.

Considering that the Torrance real estate market is worse than it has in recent memory, it is not hard to understand why so many people are worried. Interest rates rose steadily, with home values rapidly dropping. Torrance home ownership percentages were reduced as consumers looking to purchase their first home were essentially locked out of the market. Also, mortgage companies went bankrupt, and foreclosure rates rose to historically high rates.

You may be questioning how much worse this crash has the potential to be. Experts have recently said that home prices will probably fall more before consumers see any relief. A large reason for this is that credit continues to face problems, along with interest rates, which are sill high. Commercial real estate is a huge question mark in the next few months. Analysts predict that the commercial market will weaken more through all of 2008. Among the affected are offices, apartment buildings, and shopping areas. Reduced economic growth causes higher interest rates, contributing to a crumbling market.

The majority of people feel as though market relief will not come in the next several months. The availability of homes for sale here in Torrance has grown as of late, but the demand has not grown. This inventory requires adequate handling before the market can balance out. Statisticians have reported that there was a higher percentage of homes either for sale or vacant in 2007 than there had been since 1965. Of course, that’s nationwide. Torrance home stats are not so bad!

Predictions say that housing demand will stay reduced, keeping buyer prices low. Buyers, who provide a high risk to lenders and would have qualified for certain mortgages during the boom, have been shut out of the real estate market. Additionally, buyers who would qualify for the credit portion but cannot make a large down payment may find themselves getting turned down for loans. Obviously this is a problem for Torrance home buyers and sellers.

Though the whole country has been affected greatly by the crash, it seems as though Florida has gotten hit the hardest. A major reason for this is that a huge number of condominiums are supposed to be finished this year. Many deposits have been placed on these properties, but builders are worried that potential buyers will back out, concerned about the credit situation and falling property values. A large number of buyers deciding not to purchase the condos could cause major problems for construction companies, which would have trouble paying their loans.

California has also struggled, as investors who took risky loans during the peak of the market are finding that they cannot afford their mortgage payments. However, they are unable to sell their properties, due to the unavailability of loans and falling home values.

Though news of the market crash is generally negative, there is a small amount of positive information. It looks as though this could be the year the market finally hits the bottom, which would mark the beginning of its rebound.

Contact our office immediately at 310-809-0203 for a no cost consultation to determine if buying or selling Torrance real estate is right for you.

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