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Everybody Loves Raymond: The Transformation of the Georgian Revival Raymond Theatre in Old Pasadena

After 23 years of pushing to get the project through, the Georgian Revival Raymond Theatre in Old Pasadena will be converted into The Raymond Renaissance. A $45 million project consisting of 28 condominiums, 10 lofts, and retail geared to pull traffic away from the main Colorado Blvd. strip. Although quite a bit of opposition was met, this conversion is another point in the ongoing revitalization of Old Pasadena, which began years ago (Treasure Transformed, Pasadena Star News). With major retailers lining the streets, and high end restaurants on every corner, the Raymond Renaissance will further perpetuate the lifestyle Pasadenians have grown to love. Many new constructions and conversions are popping up around Old Pasadena, a testament to the solid real estate market that insulates Pasadena. If you are interested in purchasing one of these lofts or condos, you better get moving, many are already reserved, and this is going to be and is a hot property. Search for lofts, condos and home for free on the MLS, or sign up for a HotList to get them sent straight to your email.

Countrywide Saved by The BofA

It's been in the news quite a bit, the purchase of Countrywide by Bank of America, which should be finalized by the start of July. Even though it has been hard to see in Pasadena and the San Gabriel Valley, Countrywide is credited for helping spur the housing downturn, with shaky loans to risky borrowers (BofA to complete Countrywide buy by July, Reuters). Bank of America is doing exactly what many buyers should be doing right now. Taking advantage of an opportunity. During economic downturns you see mergers and acquisitions climb, because the strong companies with the assets to purchase, begin making their moves. Just like someone purchasing a home in Pasadena at a lower price point, investing in a commodity that will appreciate in the long run.

So with the beautiful warm weather, blue skies, and a little aggressive motivation, if you can purchase a home, get out there and look for your opportunity. A good start for you might be searching this weeks Open House listings, or beginning by Searching the MLS (all for free of course).

etcList
Housing market weakness long-term (Reuters)
States take a whack at foreclosures (CNNmoney.com)

theMarket
Stocks drop as credit woes continue, oil rises (AP)
Dow -1.83% ][ Nasdaq -2.27% ][ S&P 500 = -1.85% ][ 10YrBond -1.48%

35 Years of Pepperoni and Cheese in San Marino

Now this story hits close to home. Having grown up in the beautiful city of San Marino, I know one thing: when you want pizza, you get Tony's. This quaint little pizza shop has been kicking for a strong 35 years nestled amidst the lovely homes and right near San Marino High School, with all those hungry teenagers keeping it going strong. It's a staple of the community, and one I will personally continue to enjoy for years to come. So if you haven't been by there yet, I recommend you take a break and have yourself a piece-of-pie (Tony’s Pizza – Serving San Marino for Over 35 Years, San Marino Tribune).

etcList
Walk the Rose Bowl Pasadena Brochure
Rates on 30-year mortgages jump to 6.42 percent (AP)
BofA to complete Countrywide buy by July: source (Reuters)
Top 10 Worst Foreclosure States For May, 2008 (Real Estate Bloggers)

theMarket
Stocks end higher as oil falls sharply (AP)
Dow +.28% ][ Nasdaq +1.33% ][ S&P 500 = +.38% ][ 10YrBond +1.08%

Gas Prices Moving, Keeping Everyone Still, Just Long Enough to Hear Some Music

Just like the rising temperatures, gas prices are slowing us down (Temperatures heating up, Pasadena Star News). Preventing people who work in Los Angeles, and that live quite far away, from being able to afford their commute. It's an unfortunate reality, but one that raises an interesting thought. The argument for living further away was affordability, home prices are lower (per sqft.) in places that are (for example) further east of Pasadena. Now that oil prices may be offsetting the affordability of living further distances away from work, which may have an impact on home sales in places like Pasadena. Closer to work and with higher valued homes, it may effectively be just as affordable as living further and further away. Just another factor that may be helping Pasadena sustain itself in this shifting market (Gas prices latest worry for real estate market, Los Angeles Times).

On June 21, between the hours of 10am and 10pm, Pasadena will be one big Music Festival. Celebrating the beginning of summer, with music blanketing the streets in places such as the City Hall and Gamble House. Keep an ear out, and sing along (City celebrates "Make Music Pasadena" Saturday, Pasadena Star News)

etcList
Mortgage industry blasts Senate bill (AP)
Senate presses ahead on housing (Reuters)
Housing rescue group steps up efforts (CNNmoney.com)
New Effort to Modify at-Risk Home Loans (CSMonitor.com)

theMarket
Official: Charges loom for 2 Bear Stearns execs (AP)
Dow -1.08% ][ Nasdaq -1.14% ][ S&P 500 = -.97% ][ 10YrBond 0%

Smoking Regulations & Automotive Activity in Pasadena

After quite a thorough study of the affect of smoking outdoors on the public health, the City of Pasadena plans to enforce the following new regulations (PROPOSED NO-SMOKING POLICIESIN CERTAIN OUTDOOR PLACES).

1. Prohibit smoking in outdoor malls, shopping areas/centers.
2. Prohibit smoking in outdoor dining areas.
3. Prohibit smoking within 20-feet of main business entrances.
4. Prohibit smoking in public service waiting lines (e.g. movie theatre lines, ATM lines, bus stops).
5. Prohibit smoking in public outdoor gathering events/special events/parades/fairs (not on parkland).

If you want to get your opinion heard, give them a little shout at the Pasadena Public Health Comment Form.

In somewhat related news, Pasadena is a bike friendly city, and more and more people are beginning to take advantage of that coupled with the beautiful year round weather. The city is also planning on making some improvements to these infrastuctures further promoting healthy and environmentally friendly living (Getting Around Without a Car)(Pain at the pump, PasadenaStarNews). Here's a brochure on Pasadena and it's committment to being a green community Pasadena Green City Report 2007).

etcList
Lenders to vow quick mortgage aid response (AP)
AIG replaces CEO Sullivan amid subprime woes (Reuters)

theMarket
Oil hits new record, then reverses on worries (AP)
Dow -.37% ][ Nasdaq +.83% ][ S&P 500 = +.01% ][ 10YrBond -.38%

Foreclosures.

What? Where? How much? Any headline with this word automatically draws attention. So, the news keeps pumping it out. Articles and articles about foreclosures, what they are, how to avoid them, where to buy them, and so on, and so forth. 'Bargains', 'deals', 'discounts', are some other stop words, that get readers to do just that, stop. So amidst all this foreclosure frenzy, I thought I would take a moment to say, stop. Step back. Analyze, and take each news clipping and sound bite with a grain of salt, because although it's happening, there's more to the market than just those few and tired words

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US foreclosure filings surge 48 percent in May (AP) [I figured it would only be appropriate to top the list with a foreclosure headline]
Wachovia shares fall to lowest since 1992 (Reuters)
Property-flipping rule suspended (CNNmoney.com)
6 real estate bargains (Fortune)

theMarket
Wall Street ends turbulent week with sharp gains (AP)
Dow +1.37% ][ Nasdaq +2.09% ][ S&P 500 = +1.5% ][ 10YrBond +1.33%

How to Sell in a Buyer's Market

Buyers are out there looking for deals. Left and right, buyers approach me with these words pouring out of their mouths. It's their time, so they want to take advantage. This tends to discourage sellers or would be sellers from doing what is necessary to correctly sell their home. Granted there may not be a correct way, but from what I have seen in Pasadena (and surrounding areas), is that the homes that get multiple offers, the ones that get picked off the market within the first month (or even first week), have a few things in common. Actually, one thing, price. They are well priced. Now this may mean something different from location to location, but whether the house needs work or is shiny and new, pricing under market value (typically around 10% below) gets the blood rushing in buyers. When they see this, they jump, and if enough jump, the possibility of selling it for the actual market value increases substantially. This is contrary to what most sellers think. Their automatic reaction is to price a property above market value, because they expect buyers will throw low ball offers (which they are, but it depends on which property). This rather does the opposite, deterring buyers from even putting offers, letting the property sit and lose momentum, and eventually just chip away slowly at the price until someone bites. I pass these words on to you, from the halls of my office. "you can never under price a property, but you can overprice it." The rest is up to you (Coldwell Banker Official Says Pricing Strategy Getting Homes Off Market, TBO.com)

etcList
PCC makeover moving along (Pasadena Star News)
AIG shareholders demand board changes (Reuters)
Banks giving short-term help to mortgagors (Reuters)
How HUD Mortgage Policy Fed The Crisis (Washington Post)

theMarket

Stocks tumble as oil prices surge; Dow falls 205 (AP)
Dow -1.68% ][ Nasdaq -2.24% ][ S&P 500 = -1.69% ][ 10YrBond -.63%

105% Financing, Lenders are Having Trouble Learning Their Lesson

Most of the lenders we deal with have typically said the same thing, "you'll be hard pressed to find anything under 90% financing (10% down)." Aside from FHA loans, which we have been seeing (making it possible to achieve near 100% financing, if you qualify). Granted these Freddie Mac and Fannie Mae loans have some strict pre-qualification standards, but whatever happened to the good old 20% down. Here in Pasadena, home prices are higher than the national average, and the cost of living is quite high as well, so people have trouble saving up for that down payment. That is understandable, but buyers need to take some of the responsibility here, and do their home work, make sure they can afford the property, and not over extend themselves. So yes, the 105% financing by these wonderful lending entities can be quite seductive, don't jump the gun, you might end up finding yourself where you never thought you would be, in default (Mortgages With No Money Down Still Available, Washington Post).

etcList
More financial land mines ahead (CNNmoney.com)
Housing crunch, 90210 (CNNmoney.com)


theMarket
Wall Street ends mostly lower on economic worries (AP)
Dow +.08% ][ Nasdaq -.43% ][ S&P 500 = -.24% ][ 10YrBond +2.68%

Is it Negotiable?

It was another beautiful weekend here in Pasadena, perfect for taking a nice drive around and visiting some open houses. Which many people did, and are doing. Of the questions I get asked throughout my day (predominantly in open houses), one of the most recurring is, "do you know of any good foreclosure?" The actual foreclosure part isn't what is good, rather the expected discounted price, which is not necessarily the case every time. It tends to be more of a sensationalist tactic from the media, but still one grounded in truth. And although there are many more foreclosure properties (both short sale and bank owned), they are less prevalent in Pasadena and surrounding areas (depending on your where you are). So ultimately, I encourage clients to look through all listings, and to not only focus on foreclosures. There are many other things that can help you negotiate a better price when writing an offer (days on market, conditions, etc). But, if you do want to search for bank owned, here is a great place to do it: search BankOwned

Part of all this is also an increasing willingness of buyers to do work on a property. This can help bring the overall price down significantly, by getting a home that needs some care at a nice discount then putting in the time to get the work done themselves (Not to worry those of you who fear the DIY. You don't have to use a hammer, you can get a contractor). Here is a little story of how a couple created a lovely kitchen with a little hard work and some determination, all for $6,000 (We redid our kitchen for $6,000, This Old House Magazine).

etcList
Pending home sales up 6.3%; prices seen falling (CNNmoney.com)
FHA chief warns on Congress housing rescue bill (Reuters)
LandSource files for bankruptcy (CNNmoney.com)

theMarket
Stocks finish widely mixed after Friday's sell-off (AP)
Dow +.58% ][ Nasdaq -.61% ][ S&P 500 = +.08% ][ 10YrBond +1.37%

Slash and Probe

Lenders are beginning to get the hang of this foreclosure situation, and are now willing to cut prices over and over until someone bites (well, most of them). Some are even starting to undercut the market, by throwing the foreclosed properties on at $100,000 or more discounts, in attempts to get multiple offers and spur a bidding war. Over here, I've seen it work. But in the long run, it seems no matter what they do, the lenders are selling their inventory at significant discounts (Lenders slash prices on foreclosed houses as numbers surge, AP).

That takes care of slashing. Now the probing. AIG is being probed for misrepresenting values of subprime mortgages. The news worried investors, dropping the stock nearly 5% today (AIG faces probe on mortgage contracts: report, Reuters).

etcList
Clinton, Obama hold secret meeting (AP)
Leisure Living: Reverse mortgages more popular (AP)
Freddie Mac CEO tries to reassure battered shareholders (AP)
Despite Interest Rate Cuts, Foreclosures Hit Record High (Washington Post)

This Game is Fixed

The markets resurged today after some good sales and employment news, despite the increasing cost of oil and the gradual weakening of the US dollar. All in all, we'll call it a good day, it's nice to have those every once in a while (Stocks rise following jobs report, retailer data, AP).

Market Run Down
Dow +1.73% ][ Nasdaq +1.87% ][ S&P 500 = +1.95% ][ 10YrBond +2.16%

Speaking of games, lenders have a tendency of not disclosing their intentions. Although it is in their best interest to avoid foreclosures, it is still nice to see that they are willing to work things out with defaulting borrows every so often. The idea is to work out payment plans, or rework loans, so that people who could not previously afford their mortgages, can begin the process of bringing their loans back up to speed. The lender gets money, the borrow gets to keep the house, and neighborhood value don't get affected. I'd say that's a good day's work. Two good days, in one post, there is good news out there after all (The trick to getting a mortgage fixed, CNNmoney.com)

Let's Shake Things Up

Southern California will be collectively preparing for what is predicted to be one big earthquake. How will we prepare? With one great big simultaneous earthquake drill. The expected 7.8 magnitude, 3 minute long quake, is expected to cause a great deal of damage (Plans for massive earthquake drill unveiled, Pasadena Star News). It is good to hear that we are beginning to take precautions before, rather than after, the damage has been done.

New York sets rating agency fee reforms (Reuters) - "The three top credit rating agencies struck a pact with New York's attorney general on Thursday to change the way they charge fees for reviewing mortgage-backed securities, the latest development in a probe into the U.S. home loan industry." As the government probes further and further into every nook and deep dark hidden filing cabinet, fingers continue to get pointed left and right. Restructuring the way credit companies charge doesn't appear to be the most effective use of their time. Hopefully it will have some positive affect on the market.

etcList
Altadena family shows off 50-year restoration (Pasadena Star News)
Homes in foreclosure top 1 million (CNNmoney.com)

Foreclosures and Recessions and Foreclosures, oh my.

Did you hear about the recent surge of foreclosed properties? Ok, of course you have, but an interesting little note, the rich and famous aren't so immune of the unfortunate circumstances of the current market conditions (Ed McMahon fights foreclosure on Beverly Hills home, Reuters). KB Homes, builder extraordinaire, has also been affected by the turn of events in the last year or so, and posted two-thirds their expected earnings, leading them to revert to their older more humbler ways (Downsizing the American home, FORTUNE).

It appears that many companies are looking into buying their competitors out. Verizon in Talks to Buy Alltel for $27 Billion (CNBC) & Smucker to buy P&G's Folgers in $3 bln stock deal (Reuters). Hopefully Verizon can put an end to the wizard commercials Alltell bombards us with.

Mixed financial market for the day - Stocks wobble as financials weigh on sentiment (AP Business)
Dow -.10% ][ Nasdaq +.91% ][ S&P 500 -.03% ][ 10YrBond +1.08%

etcList
Subprime debacle may spark 2-year credit recession (Reuters) Mortgage brokers face industry upheaval (Reuters)

Shampoo Marketing Tactics for Luxury Home Buying

Buy one, get one free. No, you're not in aisle 6 of the local supermarket. You are shopping the lanes of San Diego, for a new home. These Developers go back to the basics in marketing their properties, we'll see how much this catches on (Slow home sales? Buy one, get one free in San Diego, Reuters).

If you were curious as to the market's current conditions, home prices continue declining throughout the nation. Don't forget, these are averages, of large areas. There are still pockets that haven't been hit quite as hard as others, and if you are sitting here near us in Pasadena, it's likely you're in one of these more insulated areas (Home prices continue sharp descent, CNNMoney.com)

The market takes a bit of a dip today: Stocks slide on more concerns about financials (AP)
Dow -.81% ][ Nasdaq -.44% ][ S&P 500 -.58% ][ 10 YrBond -1.84%

etcList
Be wary of contractors who lack the proper credentials, LaTimes
Inflation moves up on Bernanke's list of worries, AP

The Domino Effect of the Foreclosed

It is interesting to see that many of the foreclosures that currently are hitting the market aren't the owner's only property (Lose Homes, Pay More Tax, NY Times). In fact, they may have a nice portfolio of homes, and had just over extended themselves. So as they try to hide their properties from the lenders or protect themselves by declaring bankruptcy, other homes in the surrounding areas begin to suffer. Those abandoned homes that sit, withering away in stature, adversely affect the value of the entire neighborhood (Lenders foot the bill for abandoned homes, CNNMoney.com). Meanwhile mortgage relief seems to be growing in popularity, which helps readjust the payments for struggling homeowners, in hopes that everyone can avoid the dreaded foreclosure process (Housing rescue on the rise; so are foreclosures, CNNMoney.com), which contrary to popular belief, "...benefits no one: the borrower, community, lender and investor all lose [when homes go into foreclosure.]"

My sympathies to Wachovia's ex-CEO Thompson, as he packs up his desk due to an unfortunate decision regarding the purchase of a mortgage lender (Wachovia ousts CEO Thompson after losses mount, Reuters). May he find new employment without much difficulty.

Also, a rough day at the market (Dow -1.06%, Nasdaq -1.23%, S&P 500 -1.05%) : Stocks down after tepid economic data, bank woes (AP)

There's Nothing Short about a Short Sale

In fact, it may be one of the longest most drawn out versions of any residential purchase. "In a short sale, a homeowner who cannot keep up with their loan asks the lender to take a dollar amount less than what is owed on a home's mortgage, and forgive the remainder of the unpaid debt." (Banks miss an easy housing fix, CNNmoney.com).

So why would anybody in their right mind want to spend 3 Months or more waiting for a bank to approve a purchase price? Typically because it translates to, what everyone so nonchalantly refers to as a, 'great deal.' Not just for the buyers, but for the banks too. Les Christie's article outlines some of the advantages to all sides of the transaction in a short sale, namely the bank saves money, the buyer gets a good deal, and the seller saves some face and hopefully salvages their credit.

In the meantime, as you wait for the approval, shop arround for a good loan. Rates are jumping up and down everyday, and this week, they're up. > Rates on 30-year mortgages jump to 11-week high, AP

The OPEN HOUSE List (4/19 & 4/20)

The Big Four. Four beautiful homes open on this hopefully beautiful weekend. Stop by say hello, possibly to your new home.

4209 Canyon Crest Rd. Altadena
Price: $729,900
Bedrooms: 3
Bathrooms: 2
Square Footage: 1,469
Lot Size: 7,200
Open: Sunday 2 - 4 pm

435 South San Gabriel Blvd. Pasadena
Price: $879,000
Bedrooms: 3
Bathrooms: 4
Square Footage: 1,694
Lot Size: 8,834
Open: Sunday 2 - 4 pm


232 S. Vinedo Ave, Pasadena
Price: $625,000
Bedrooms: 3
Bathrooms: 2
Square Footage: 1,207
Lot Size: 4500
Open: Saturday & Sunday 2 - 4 pm

1508 Sinaloa Avenue, Pasadena - PRICE REDUCTION!!

Price: $899,000

Bedrooms: 3
Bathrooms: 3
Square Footage: 2,196
Lot Size: 6,736
Open: Sunday 2 - 4 pm

The OPEN HOUSE List (4/13)

Come for a lovely Sunday afternoon of relaxation by the pool at this Beautifully Updated home.

435 South San Gabriel Blvd. Pasadena

Price: $879,000
Bedrooms: 3
Bathrooms: 4
Square Footage: 1,694
Lot Size: 8,834
Open: Sunday 2 - 4 pm

The OPEN HOUSE List (4/5 & 4/6)

Three lovely open houses to pick and choose from, although we recommend stopping by each one.

4209 Canyon Crest Rd. Altadena
Price: $729,900
Bedrooms: 3
Bathrooms: 2
Square Footage: 1,469
Lot Size: 7,200
Open: Sunday 2 - 4 pm




435 South San Gabriel Blvd. Pasadena
Price: $879,000
Bedrooms: 3
Bathrooms: 4
Square Footage: 1,694
Lot Size: 8,834
Open: Saturday & Sunday 2 - 4 pm




232 S. Vinedo Ave, Pasadena
Price: $649,500
Bedrooms: 3
Bathrooms: 2
Square Footage: 1,207
Lot Size: 4500
Open: Sun 1 - 4

The Senate has been Busy Killing & Fixing

Yes, they've been busy running around trying to, help us? Well, so it seems. All these stimulus packages, and incentives, and bills, and fixes, and billions upon billions of dollars, are meant to pick the economy back up, and get people back out there purchasing, whether it be a home or a tv, yet barely anything has taken effect yet. Some good news at least, is that the market has picked up since January. So here, as always, are some more attempts at help.

Senate takes up $15 Billion Housing Fix (click title for full article)
Senate begins debate on compromise measure aimed at averting foreclosures and helping those hurt in housing crisis.

Senate Kills Bankruptcy Revamp in Housing Bill (click title for full article)
The Senate on Thursday voted to reject a Democratic proposal to give bankruptcy judges the power to ease mortgage payment terms for some distressed borrowers as it began debating a housing market rescue plan.

The OPEN HOUSE List

These New Listings will be held OPEN this Sunday. Swing by and check them out.

435 South San Gabriel Blvd. Pasadena

Price: $879,000

Bedrooms: 3

Bathrooms: 4

Square Footage: 1,694

Lot Size: 8,834

Open: Sunday 2 - 4 pm

1508 Sinaloa Avenue, Pasadena

Price: $899,000

Bedrooms: 3

Bathrooms: 3

Square Footage: 2,196

Lot Size: 6,736

Open: Sunday 2 - 4 pm

What Exactly Do You Want to Hear?

The market is picking back up? The market has settled? We have yet to see the sharp declines? Whatever it is, I'm sure you can find it somewhere out there. But nobody can tell you what will happen tomorrow, let alone a year from now. With the rise and fall of giant corporations, buyouts, and bailouts, all we can do is analyze and try to make intelligent decisions. So I present you with information to help kick start the process.

Mortgage Rates Mixed (click the title for full article)

Long-term mortgage rates were relatively unchanged as the economic indicators came in as expected.

Housing Agency Drafts Mortgage Bailout Plan (click the title for full article)

The leading U.S. housing agency has drafted a foreclosure prevention program that could work in tandem with plans created by leading Democratic lawmakers, but it still needs the blessing of the Bush administration, sources familiar with the plan said Thursday.

FED Sets Public Hearings of BofA/Countrywide Deal (click the title for full article)

The Federal Reserve Board on Thursday took the unusual step of scheduling public hearings in Chicago and Los Angeles next month to get comments on the pros and cons of Bank of America Corp's (BAC.N) planned $4 billion acquisition of mortgage giant Countrywide Financial Corp.

Nobody Minds a $200 Billion Pick Me Up

Up. Down. Up. Down. Up? Whatever the financial markets are doing, it's making me dizzy. Of course the cherry on top of the past week, the buyout of Bear Stearns for $2 a share. Meanwhile, the government continues to cut rates and help aid the markets. The following article runs through the government's relaxed requirements for Fannie Mae and Freddie Mac, in order to allow for more loans, and to help home buyers and to get things moving again. On a lighter note, I have included a piece on the importance of staging a home.

Government Eases Fannie, Freddie Restraints (click on the title for full article)

The government on Wednesday relaxed capital requirements at Fannie Mae and Freddie Mac as part of a plan to quickly inject an additional $200 billion of financing for home loans.

The initiative, which will require Fannie and Freddie to raise substantial funds, is part of a broader government strategy to ease a credit crisis that has made it difficult for consumers and businesses to borrow, and spread fear throughout global financial markets.

Benefits of Staging A Home (click on the title for full article)

On the most elementary level, staggers de-clutter, rearrange furniture and accessorize a house. To those more prone to hyperbole, they set an emotional tone for a home, one that suggests a lifestyle and perhaps "speaks" to potential buyers in a way that a kid's roller blades left in the middle of the living room just can't.

Back to It

After a bit of a hiatus, we have returned with more energy and excitement. Excitement you ask? How can that be with all the horrible news and cries of impending doom!? We're excited because this is an interesting market with tons of opportunities (which don't necessarily stick around for too long). Yes, there are homes sitting on the market, over priced maybe, and just waiting around, but there are also many homes (in this San Gabriel Valley area) selling in the first week with multiple offers above asking price. Buyers are out there watching, waiting and moving in on properties when they find the right one. So my word of advice looking down the 2008 pipeline, don't wait for prices to drop, get out there, search the properties, and find the home you want. Recession or not, we are in it, so let's take advantage of what is out there. On that note, a few articles to catch you up before the beginning of another (hopefully sunny) week in Southern California.

Bernanke, Buyers and Building

Bernanke Outlines Mortgage Help Plan (click the title for the full article)    

Fed chief says central bank 'strongly committed' to easing mortgage crisis.

White House Aims to Simplify Mortgage Process  (click the title for the full article)

Buyers would get easier-to-understand mortgage terms and save about $700 in closing costs under a new proposal.

Build Your Dream House Now (click the title for the full article)

It's the best time in years to take your blueprint off the drawing board and construct it for real.

I Have A Plan, Let's Just Talk About It Then Do Nothing

Everyone is scrambling to give the nation a sense that something is being done about the market conditions and to stimulate the economy. With the weather changing and the steady flow of hot air, it's hard to tell what exactly will be the result of all the hype in the media and government. The following article runs through some of the proposed fixes.

Housing rescue: What you need to know (click the title to read the full article): There are so many plans being floated to stem the subprime crisis and avert foreclosures, it's hard to keep track. A cheat sheet on the major proposals.

Of course we can always count on some moral support from our favorite Fed Chairman Bernanke.

Bernanke Calls for More Mortgage Relief (click the title to read the full article): Battling a dangerous wave of home foreclosures, Federal Reserve Chairman Ben Bernanke called Tuesday for additional relief and urged lenders to help distressed owners by lowering the amount of their loans.

The OPEN HOUSE List

We will be holding these two properties open again today.

232 S. Vinedo Ave, Pasadena

Price: $649,500
Bedrooms: 3
Bathrooms: 2
Square Footage: 1,207
Lot Size: 4500

Open: Sun 1 - 4

317 Milton Dr, San Gabriel

Price: $759,000
Bedrooms: 4
Bathrooms: 2
Square Footage: 2252
Lot Size: 6900

Open: Sun 1 - 4

Articles for Thought

Here are a few articles of interest. The first one discusses ways to ensure your insurance will cover you in case of a disaster. Then we dive into the world of loans and securities, and how Fannie Mae and Freddie Mac will soon roam free as their limits may be lifted off. Finally, a discussion with President Bush, and why he won't support a bill that was supposedly geared at helping homeowners in foreclosure. Lets take a look shall we.

Insuring Your Home Against Disaster (click the title to view the full article)
If the worst happens, you can't be sure you'll collect enough to bring back the home you love. Here's what to do.

Federal Regulators to Ease Rules on Fannie Mae and Freddie Mac (click the title to view the full article)
Federal regulators for Fannie Mae and Freddie Mac, the biggest buyers of American home mortgages, will remove limits on the amount of loans and securities the companies can own, a step that could help bolster the weakening housing market.

Housing bill will 'bail out lenders' - Bush (click the title to view the full article)
President reiterates his objection to a proposed change to help homeowners in bankruptcy and the creation of a $4 billion fund to let agencies buy foreclosed homes.

White Noise

The constant barrage of sensationalist news stories that the media keeps manufacturing may ring of some truth, with the decline in prices and drastically increasing foreclosure rates. Yet, they are so excessive and repetitive that they have become white noise. The few and far between optimistic and thoughtful articles, that give us more than just scare tactics and thrill seeking headlines, seem to be much more beneficial. Instead of crying wolf, of the "impending" doom, some experts suggest taking advantage of the opportunities that are sitting right in front of us. I choose to sit on the side of optimism and action, especially when an opportunity presents itself. The following article candidly discusses doing just that. And just as a tool, this website helps you search for specifically Foreclosure properties (and more) although we recommend not necessarily restricting your search for a home or investment by these parameters.

Is This the Time to Buy or Stay Safely on the Sideline?
(click the title to view the full article)
Right now, there are several compelling reasons for anyone who needs a house or wants to upgrade his or her family's current living arrangements to venture forth.

Hello, My Name is Oscar

If you missed the oscars, here's a List of the Winners. Welcome back writers.

Much Ado About Buying

As I was sifting through the articles and news blurbs on real estate and the market, I came across a lovely little outline of "things to know" when purchasing a home. Considering the market conditions in favor of buyers, and the opportunities to invest your money in some great properties, I pass this informative section along to you. We also have a number of articles and sections on Buying a home, on our website.

Buying A Home: Things to Know (and more)
(click the title to view the full article)

1. Don't buy if you can't stay put.
2. Start by shoring up your credit.
3. Aim for a home you can really afford.
4. Don't worry if you can't put down the usual 20 percent.
5. Buy in a district with good schools.
6. Get professional help.
7. Choose carefully between points and rate.
8. Before house hunting, get pre-approved.
9. Do your homework before bidding.
10. Hire a home inspector.

The OPEN HOUSE List

We will be holding each of these properties open this weekend on Saturday & Sunday from 1:00 pm - 4:00 pm so stop by and say hello.

232 S. Vinedo Ave, Pasadena

Price: $649,500
Bedrooms: 3
Bathrooms: 2
Square Footage: 1,207
Lot Size: 4500

Open: Sat & Sun 1 - 4

317 Milton Dr, San Gabriel

Price: $759,000
Bedrooms: 4
Bathrooms: 2
Square Footage: 2252
Lot Size: 6900

Open: Sat & Sun 1 - 4

Give Me a Hand. Wait, No. Give Me the Whole ARM

"No job? No income? No money? Want a house?"
"Why yes, that would be lovely."
Lenders had a simple job in the recent past, to make dreams come true for relatively short periods of time (6 months, maybe a year). As a result of the excessive number of people defaulting on their mortgage payments (primarily due to ARMs), some overdue measures are being taken to guarantee the solidity of new loans. The first article discusses MGIC's new loan requirements/restrictions that will soon take effect. The second article sheds light on how loans were given out to buyers who turned out to be less qualified than they were deemed.

Changes by Key Underwriter put a New Squeeze on Market
The oldest and largest private insurer of home loans -- the Mortgage Guaranty Insurance Corp. -- issued a bombshell warning Feb. 6 that, in large parts of the country, it would no longer provide coverage on popular cash-out refinancings, reduced-documentation loans, mortgages with down payments of less than 5%, loans for rental houses or other non-owner-occupied investor properties, and mortgages with negative-amorti- zation features, such as payment-option loans. The bans, which take effect March 3, cover four states in their entirety (California, Arizona, Florida and Nevada), plus the District of Columbia and 25 other major real estate markets including Denver, Baltimore, Boston, Chicago, Detroit, Minneapolis, the Long Island and New Jersey suburbs of New York, Portland, Ore., and Tacoma, Wash.

Subprime Loans Defaulting Even Before Resets
It turns out that massive interest rate spikes aren't the problem -- many borrowers couldn't afford these mortgages even at the low, introductory interest rates.

>mardellirealestate.com<

And Then They Got High

Relax, not that high. Rates may have climbed up a bit in the last week or so, but some expect them to drop again in the coming days, based on the activity of the 10 Yr Bond Yield. A simple and short post, enjoy the following article that outlines a few figures.

Fixed Mortgage Rates Rise, Adjustable Rates Fall
Long-term fixed mortgage rates return to January levels; average adjustable-rate mortgage rates slightly lower than earlier this year, says Freddie Mac.

If Only I Had Bought that Place I Wanted at that Great Price and Rate, Instead of Waiting for the Market to Drop 10%

A little tongue-in-cheek, but as harmless as a bad joke may be, nobody wants to be on the other end looking back, regretting any missed opportunities. It's just nice to have a little supportive press that reaffirms what I have said before, think twice, and look into buying property now. Rates creeped up again today, so beware, before you know it we are going to be on the other end looking back. After a nice ending today in the financial markets, hopefully people will feel invigorated and start investing at this opportune time. The following article discusses buying real estate and stocks in the current market conditions, and the article also charts a comparison of buying property now or waiting a year for the market to drop 10% (click the image to see the chart). I believe it deserves substantial consideration:

Ignore the Headlines

...let's say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It's time to get serious--before an inevitable rise in interest rates wipes out your advantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.
[click the image to see the TIME Article and Chart]

President's Day of Relaxation

Evidently our Commander in Chief needs an extra day of rest because of all the stress he's built up during the last year or so dealing with the sub-prime crisis. While he kicks up his feet and plays some video games, we will continue to persevere in this financially volatile market. As I had mentioned, the market is picking up a little steam around here, although many people are trying to time their purchases to coincide with the increase in the conforming loan limit. We've had ourselves some multiple offer situations, and needless to say, buyers are willing and ready when they find what they want.

Take note, rates are creeping up slightly. Yet, they are still fantastic and continue to incentivize buyers. Here is an article that was written on Valentine's day, Roses & Rates, what more could anyone ask for: Rates on 30-Year Mortgages Rise

Unfortunately, foreclosures are rampant, and people are even walking away from their properties. This may be the right decision in some instances, but if you can't make your payments, there are many options and solutions that you may not be aware of. Make sure you do some research and talk to us, we can provide all that information for you, and help you make the most financially sound decision. We have had experience with properties in all stages of the Foreclosure process, and it can be quite a difficult and drawn out one. To those buying properties from auctions, banks or sellers in foreclosure, be careful. You have to do your due diligence, and make sure there aren't any unexpected liens or other surprises on the property.

Things are Picking Up

It may be a little premature to really say, but things seem to be picking up in our area. There appears to be more activity surrounding the recent rate cuts and talk of the Stimulus Package. Buyers are activily looking for property and finding deals in REOs and Short Sales. The word on the street, which I am sure you have heard countless times, is "it's a great time to buy," and "it's a buyer's market." Well it's the truth, especially if you plan on holding onto the property for a minimum of 3 years. In fact, now that the Conforming Loan limit might be increasing to $729,750 for a Single Family Residence, the rates for higher priced homes will be more attractive. Considering that the median home price in Los Angeles was $589,900 in 2007 whereas the median for the US was sitting at $212,300, this will be a breath of fresh air for California home buyers.

Also of interest, is that banks are trying to help homeowners avoid foreclosure. But who are they really helping? Here's an article about the 30 Day hold they plan to place on foreclosures.
US, Banks Unveil Aid for Homeowners Facing Foreclosure