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.