Santa Clarita Valley CA Real Estate Update

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Darlene@DarleneAlonzo.com

Mortgage Delinquencies Rise!

2011-09-30T08:09:00.000-07:00

Mortgage Delinquencies Rise as Home

Retention Actions Drop: Report 09/29/2011

By: Carrie Bay

Data released Thursday by a federal banking regulator provides a snapshot of mortgage performance over the second quarter of this year - both early stage and serious delinquencies increased slightly compared to the previous three-month period while new modification actions fell nearly 20 percent.

According to information compiled by the Office of the Comptroller of the Currency (OCC), 88 percent of the nearly 33 million first-lien mortgages in the subject portfolio were current and performing at the end of the second quarter, down from 88.6 percent at the end of the first quarter, but up from 87.3 percent a year earlier.

The decline in portfolio quality is mainly attributable to an increase in early stage delinquencies. Mortgages 30-to-59 days delinquent increased 0.4 percent from the previous quarter to represent 3 percent of the servicing portfolio.

The OCC says the increase in early stage delinquencies reflects seasonal effects as well as a sluggish economy and elevated unemployment.

The percentage of mortgages that were 60 or more days past due and delinquent mortgages to bankrupt borrowers increased slightly to 4.9 percent of the portfolio from 4.8 percent in the first quarter of 2011, after decreasing during each of the previous five quarters.

Completed foreclosures increased for the second consecutive quarter to 121,202 - up 1.2 percent from the

previous quarter and over 27 percent from the fourth quarter of 2010 following the lifting of foreclosure moratoria.

The OCC says this stat is expected to increase in future quarters as stalled foreclosures work their way through the system.

Newly initiated foreclosures, however, have declined for three straight quarters. Foreclosure starts decreased by 8 percent to 287,145 over the April-to-June timeframe and are down nearly 2 percent from a year earlier.

The regulator's data show that there were 1,319,902 mortgages in the process of foreclosure at the end of the second quarter - 4.0 percent of the subject portfolio.

The OCC stressed that mortgage servicers continue to seek alternatives to foreclosure for delinquent borrowers.

A total of 56,403 new short sales were reported during the second quarter period, up more than 12 percent from the previous quarter. New deed-in-lieu actions nearly doubled to 2,546.

Over the same period, servicers implemented 456,397 home retention actions, including loan modifications, trial-period plans, and payment plans.

Although modifications under the Home Affordable Modification Program (HAMP) increased by 31.6 percent during the quarter, other home retention actions declined, causing an overall decrease of 18.1 percent in new modification actions from the previous quarter.

On average, modifications during the second quarter reduced borrowers' monthly payments by $393, or 25.1 percent. HAMP modifications reduced payments by an average of $577, or 35.9 percent.

Perhaps the most troubling result in the report is post-modification performance. Of loans modified since the beginning of 2008, nearly half - 48.7 percent - have since gone delinquent.

The OCC's mortgage performance report covers about 63 percent of all first-lien mortgages in the United States, worth $5.7 trillion in outstanding balances.

Provided by Derrick Leblanc – Stewart Title

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

NEW LISTINGS IN Santa Clarita FOOTHILLS

2011-09-01T08:27:00.000-07:00

Beautifully Remodeled 4 bedroom, 2 bath home! 17063 Canvas St. Canyon Country, 91387 This is a standard sale.

Take a look at my video tour below and give me a call to view!

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

* View Unsold Inventory by price point.

Darlene@DarleneAlonzo.com

July 2011 Home sales Report

2011-08-16T16:03:00.000-07:00

CAR July Sales and Price Report

LOS ANGELES (Aug. 15) - California home sales fell in July but were up from the previous year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

Closed escrow sales of existing, single-family detached homes in California dropped 4.1 percent to a seasonally adjusted 458,440 units in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. July home sales were up 4.5 percent from the 438,850 units sold in July 2010. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

"Although July sales improved over last year, they were somewhat weaker than expected, given current prices and mortgage rates," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Economic uncertainty and recent developments in financial markets have caused hesitation among buyers, the effects of which we may see in the coming months. We must see sustained job and income gains along with an increase in consumer confidence before we can expect to see consistent improvement in the housing market," Appleton-Young added.

The statewide median price of an existing, single-family detached home sold in California dipped 0.3 percent in July to $294,230 from a revised $295,210 in June. July's median price was down 7.6 percent from the $318,550 recorded in July 2010.

"Despite the uncertain outlook, interest rates are at near-record lows, and home prices are favorable," said C.A.R. President Beth L. Peerce. "Well-qualified, motivated buyers who expect to own their home for more than a few years should carefully study their options now."

Other aspects of C.A.R.'s resale housing report for July 2011 include:

* The Unsold Inventory Index for existing, single-family detached homes was 5.5 months in July, up from 5.0 months in June, but essentially unchanged from July 2010's 5.6-month supply. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

* Thirty-year fixed-mortgage interest rates averaged 4.55 percent during July 2011, virtually unchanged from 4.56 percent in July 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.97 percent in July 2011, compared with 3.73 percent in July 2010.

* The median number of days it took to sell a single-family home was 52.1 days in July 2011, compared with 42.4 days for the same period a year ago.

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. Due to the low sales volume in some areas, median price changes in June may exhibit unusual fluctuation.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Information provided by SRAR. For more information about the market in your area contact Darlene Alonzo directly.

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

http://www.realestateshows.com/576157

Darlene@DarleneAlonzo.com

May Pending Home Sales Index

2011-06-24T19:16:00.000-07:00

May Pending Home Sales Index

find the article at:

"http://www.car.org/newsstand/newsreleases/2011newsreleases/maypendingsalesindex/"

For release:
June 21, 2011

California pending home sales rise in May on monthly and annual basis, C.A.R. reports

LOS ANGELES (June 21) – California pending home sales rose in May, posting the first year-over-year increase in 18 months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

Pending home sales:

Pending home sales in California rose in May, according to C.A.R.’s Pending Home Sales Index (PHSI)*. The index was 118.3 in May, up 1.6 percent from April’s revised index of 116.4, based on contracts signed in May. The index also was up 12 percent from May 2010. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

“May marked the first year-over-year increase in pending sales since November 2009 and the largest annual increase since August 2009,” said C.A.R. President Beth L. Peerce. “May’s increase in pending sales is consistent with our expectation that home sales in the second half of 2011 should be higher compared with the second half of 2010, and as a result, annual sales for all of 2011 should match or exceed last year’s annual pace.”

Distressed housing market data:

· The total share of all distressed property types sold statewide was unchanged in May from April’s 48 percent, but up from 46 percent in May 2010.

· Non-distressed sales made up the remaining share at 52 percent in May, unchanged from April but down from 54 percent in May 2010.

· Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 28 percent in May, unchanged from April, but up from 26 percent in May 2010.

· At 19 percent, the statewide share of short sales also was unchanged in May, but down from 20 percent in May 2010.

Multimedia:

· View a video of C.A.R. Deputy Chief Economist Robert Kleinhenz discussing highlights of the May existing home sales and price report, which was released June 15.

· View a chart of pending sales compared with closed sales.

# # #

Share of Distressed Sales to Total Sales
(Single-family)

Type of Sale	May 2011	April 2011	May 2010
REOs	28%	28%	26%
Short Sales	19%	19%	20%
Total Distressed Sales	48%	48%	54%

Single-family Distressed Home Sales by Select Counties
(Percent of total sales)

County/Region	May 2011	April 2011	May 2010
Madera	90%	56%	69%
Lake	80%	79%	64%
Solano	71%	73%	NA
San Bernardino	69%	70%	70%
Riverside	65%	66%	68%
Sacramento	65%	67%	62%
Amador	63%	65%	49%
Tehama	62%	69%	NA
Merced	57%	61%	50%
Mendocino	51%	56%	NA
Sonoma	48%	54%	NA
Los Angeles	45%	47%	45%
Butte	44%	50%	30%
Napa	43%	51%	NA
San Luis Obispo	40%	43%	33%
Orange	36%	37%	33%
San Diego	29%	27%	26%
Marin	28%	28%	NA
Humboldt	17%	34%	13%
Kern	NA	68%	61%

N/A = data not available

*Note: C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually becomes closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.

FHA loan down payments to 5%

2011-05-28T07:35:00.001-07:00

Draft bill would hike FHA loan down payments to 5%, slash loan limits

Legislation will likely draw fire from industry groups, Senate Democrats

By Ken Harney, Monday, May 23, 2011.

Inman News™

Republicans on the House Financial Services Committee have drafted legislation that would raise the minimum down payment for FHA mortgages to 5 percent, cut FHA loan limits in most markets, and move the Agriculture Department's rural housing program to FHA's parent agency, HUD. Though the draft bill has not been introduced, titled or assigned a number, it is expected to be the main subject of a hearing Wednesday before the Subcommittee on Insurance, Housing and Community Opportunity, chaired by Rep. Judy Biggert, R-Ill. After that, the bill is likely to be formally introduced and sped through subcommittee and committee votes and head for action by the full House. The text of the draft bill appears to be a partial answer from House Republicans to the Obama administration's call earlier this year for a smaller federal government footprint in housing. By lowering maximum FHA loan limits in large numbers of local areas -- well below even the limits that are already scheduled to kick in Oct. 1 -- the bill would squeeze down FHA loan volume across the country, cutting a resource for some home purchasers who can't obtain a conventional mortgage.

Beautifully Updated Sylmar CA Home - 13384 Foothill Blvd, Sylar CA 91342

2011-05-26T20:11:00.000-07:00

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

Darlene@DarleneAlonzo.com

May 16th - July 31 Fredde Mac Foreclosure Promotion

2011-05-18T15:20:00.001-07:00

Freddie Mac launches promotion to sell its foreclosed homes

PE Business

on May 18, 2011 8:00 AM
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In an effort to reduce its inventory of foreclosed homes this summer, HomeSteps, the real estate sales unit of Freddie Mac, this week launched a nationwide promotion to lure potential buyers.

The HomeSteps Summer Sales Promotion is offering to cover up to 3.5 percent of a buyer's closing costs and a $1,200 bonus to selling agents for initial offers received between May 16, 2011 and July 31 and when escrows close on or before September 30. This offer is good only for homes sold to buyers who plan to live in them.

Also a two-year limited home warranty that covers electrical, plumbing, air conditioning, heating and other major systems and appliances is available for some of Freddie Mac's foreclosed homes. Buyers of Freddie Mac homes also in certain instances can obtain discounts of up to 30 percent on the purchase of appliances. For more information contact :

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

Darlene@DarleneAlonzo.com

Positive Forecast for Existing-Home Market 05/13/2011

2011-05-16T11:59:00.001-07:00

Analysts Hold Guarded, but Positive Forecast for Existing-Home Market 05/13/2011

Sales of previously owned homes - which in recent months have been buoyed by a growing share of distressed REO and short sales - are expected to remain on an upward,

albeit uneven, track through this year and next, according to economists at the National Association of Realtors (NAR) midyear meeting in Washington this week.

Lawrence Yun, NAR's chief economist, characterized existing-home sales as "underperforming" by historical standards, but he sees gradual improvement ahead.

"If we just hold at the first-quarter sales pace of 5.1 million, sales this year would rise 4 percent," Yun said, but he was quick to add that the remainder of the year looks

better than the results seen in the first three months of 2011.

"We expect 5.3 million existing-home sales this year, up from 4.9 million in 2010, with additional gains in 2012 to about 5.6 million - that's a sustainable level given the size of our

population," Yun explained. Data released by NAR earlier in the week showed that bank-owned homes and pre-foreclosure short sales made up 39 percent of the first quarter's

existing-home sales. According to the trade group's study, these distressed properties are selling for discounts in the 20 percent range and attracting investors looking for a bargain.

"A huge volume of cash sales, supported by the recovery in the stock market, show that smart money is chasing real estate," Yun said.

He notes that this buyer makeup implies there could be a sizeable pent-up demand from traditional buyers who would need to take out mortgages.

"The problem isn't with interest rates, but with the continuation of unnecessarily tight credit standards that are keeping many creditworthy buyers from getting a loan despite extraordinarily

low default rates over the past two years," Yun said. According to NAR's chief market analyst, if credit requirements returned to normal, safe standards, home sales would be 15 to 20 percent higher.

Courtesy of Derrick LeBlanc – Stewart Title

For more information about our local market statistics contact Darlene Alonzo Directly 661-713-4341 or email Darlene@DarleneAlonzo.com

Valencia Gourmet Food Truck Fest and Classic Car Show May 15th

2011-05-12T20:36:00.000-07:00

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

Darlene@DarleneAlonzo.com

Foreclosure activity in the U.S. has fallen to its lowest level in 40 months

2011-05-12T08:14:00.000-07:00

Foreclosure activity in the U.S. has fallen to its lowest level in 40 months, according to RealtyTrac.

The company’s foreclosure market report for April shows that filings – including default notices, scheduled auctions, and bank repossessions — were reported on 219,258 properties last month.

That figure represents a 9 percent decline compared to March and is down 34 percent from a year earlier.

It marks the seventh straight month that RealtyTrac has recorded a decline in foreclosures, but the company says it doesn’t necessarily mean we’ve turned the corner.

“This slowdown continues to be largely the result of massive delays in processing foreclosures rather than the result of a housing recovery,” said James Saccacio, RealtyTrac’s CEO.

“The first delay occurs between delinquency and foreclosure, when lenders and services are no longer automatically pushing loans that are more than 90 days delinquent into foreclosure but are waiting longer to allow for loan modifications, short sales, and possibly other disposition alternatives,” Saccacio explained.

He says data from the Mortgage Bankers Association shows that about 3.7 million properties are in this limbo stage of between serious delinquency and foreclosure.

“The second delay,” Saccacio continued, “occurs after foreclosure has started, when lenders are taking much

longer than they were just a few years ago to complete the foreclosure process.”

As evidence of this extended timeline, RealtyTrac’s study found that nationwide, completed foreclosures in the first quarter of 2011 took an average of 400 days from the initial default notice to REO. That’s up from 340 days in the first quarter of 2010 and more than double the average 151 days it took to foreclose in the first quarter of 2007.

The foreclosure process is taking much longer in some states. The average timeframe from initial default notice to REO in New Jersey and New York was over 900 days in the first quarter of 2011, more than three times the average timeline in the first quarter of 2007 for both states.

The full foreclosure process in Florida took an average of 619 days in the first quarter, up from 470 days in the first quarter of 2010 and nearly four times the average of 169 days it took in the first quarter of 2007.

In California, the foreclosure timeline extended to 330 days in the first quarter. It was 262 days a year earlier and just 134 days in the first quarter of 2007.

Even with processing delays, the curb in activity last month wasn’t entirely widespread. RealtyTrac says REOs hit a new record high in Nevada, while defaults spiked in Massachusetts and New Jersey.

Ten states accounted for 70 percent of U.S. foreclosure activity in April, led by California with 55,869 properties receiving a filing during the month.

A total of 19,649 Florida properties received a foreclosure filing in April, the second highest state total despite a 59 percent decrease from April 2010.

Arizona tallied the third highest state total with 13,419 properties receiving foreclosure filings in April, followed by Michigan with 12,996, and Nevada with 11,761.

Other states with foreclosure activity totals among the nation’s 10 highest last month were Illinois (10,055), Texas (8,793), Georgia (8,479), Ohio (7,962), and Colorado (4,379).

For more information about our local activity contact Darlene Alonzo – 661-713-4341 or to view foreclosure visit my website: www.DarleneAlonzo.com

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

Darlene@DarleneAlonzo.com

HUD's Inventory of REOs More Than Double a Year Ago!

2011-05-09T11:47:00.001-07:00

HUD's Inventory of REOs More Than Double a Year Ago

HUD has released a report detailing recent business activity at the Federal Housing Administration (FHA). It shows that the federal agency's inventory of REO homes has ballooned as sales from this portfolio fell sharply during the final months of 2010 and early part of this year.

The number of repossessed single-family properties held at the end of February 2011 was 68,801, according to the HUD report. That figure represents an increase of more than 50 percent from a year earlier, when the tally of these government-owned homes stood at 44,605.

HUD manages the disposition of homes with FHA loans that have been repossessed.

After hitting a high-water mark of 8,893 last June, sales of the agency's REOs began to slide, but with moderate

month-to-month declines typically in the range of 200 to 300 fewer property sales - that is until November.

During that month, the number of REOs sold from the government portfolio plunged 20 percent, from 7,289 in October to 5,817 in November.

The next month, the agency's already-depressed sales were cut in half. Just 2,749 HUD homes were sold in December.

The number of REO sales slipped by another 117 in January to 2,632, but then bumped up to 4,221 during the month of February.

The steep drop in REO sales over the prior four-month period, though, has left the federal agency holding a bloated inventory of properties.

The HUD report also noted that the number of FHA insurance claims on single-family homes filed as a result of foreclosures, short sales, and deeds-in-lieu totaled 8,619 in February, up from just over 6,000 the month before.

It's the first time in five months that the federal insurer has seen an increase in single-family default claims. February's claims amounted to $1.08 billion.

The number of loss mitigation claims paid during February was 15,031, with more than two-thirds resulting from loan modifications.

The cumulative number of defaults reported on FHA-insured loans for the 2011 fiscal year, which for the federal agency began last October, stood at 619,712 as of the end of February.

Article by: Carrie Bay 05/06/2011

For more information about the Santa Clarita Valley contact Darlene Alonzo at 661-713-4341.

Major Economic Reports That Will Hit The Market The This Week- 4/18/2011 - 4/21/2011

2011-04-18T15:43:00.001-07:00

What Happened to Rates Last Week:

Mortgage backed securities (MBS) gained +90BPS last week which pushed 30 year fixed rates downward. We had a very volatile week where we saw rates increase as well as decrease. Most of our gains occurred on Friday on the weaker than expected Consumer Price Index (CPI) data. CPI is a measure of inflation and mortgage rates react very closely to inflationary news. However, the longer term trend is still pointing towards higher mortgage rates as the very closely watched 100 day moving moving average continues its march towards higher pricing.

What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises:

Date	ET	Release	For
18-Apr	10:00	NAHB Housing Market Index	Apr
19-Apr	8:30	Housing Starts	Mar
19-Apr	8:30	Building Permits	Mar
20-Apr	7:00	MBA Mortgage Purchase Index	15-Apr
20-Apr	10:00	Existing Home Sales	Mar
20-Apr	10:30	Crude Inventories	16-Apr
21-Apr	8:30	Initial Claims	16-Apr
21-Apr	8:30	Continuing Claims	16-Apr
21-Apr	10:00	Philadelphia Fed	Apr
21-Apr	10:00	Leading Indicators	Mar
21-Apr	10:00	FHFA Housing Price Index	Feb

It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. By Brian Woolley, Prospect MTG

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

Darlene@DarleneAlonzo.com

Foreclosures Filings Hit 3-Year Low

2011-04-18T15:38:00.001-07:00

Foreclosures Filings Hit 3-Year Low:

U.S. foreclosure filings fell in the first quarter to the lowest level since early 2008 amid an ongoing backlog following last year's halt in activity, according to a RealtyTrac report on Thursday.

Default notices, scheduled auctions and bank repossessions were reported on 681,153 properties, down 14.8 percent from the previous quarter and a drop of 26.9 percent from the first quarter of 2010.

It was the lowest level of foreclosures since the first quarter of 2008.

Nevada maintained the highest U.S. state foreclosure rate as one in every 35 homes had a foreclosure filing. California alone accounted for nearly a quarter of overall foreclosure activity.

Foreclosures add supply to a housing market that already has too much inventory available which helps to keep home prices down. But with very strong home sales over the past quarter and reduced foreclosures, the table is set for home prices to stabilize.

Provided by Brian Woolley, Prospect Mtg

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

See all interest rates content

Darlene@DarleneAlonzo.com

Mortgage Rates April 12, 2011

2011-04-12T17:29:00.001-07:00

Interest Rate Roundup for April 7, 2011

By Gregg Fields • Bankrate.com

Interest Rate Roundup

· Mortgages

· CDs

Find the best mortgage rates in your area.

Mortgages

· 5.08% (30-year fixed)

· 0.41 (average points)

Here's a look at the state of mortgage rates from Bankrate.com's weekly national survey of large banks and thrifts conducted April 6, 2011.

As applications for home purchase loans saw a weekly surge, mortgage rates rose in Bankrate's latest weekly survey. The average rate on

the benchmark 30-year fixed-rate mortgage climbed by 7 basis points to 5.08 percent. A basis point is one-hundredth of 1 percentage point.

The 15-year fixed-rate mortgage rose slightly to an average of 4.27 percent, up 2 basis points from last week. Jumbo fixed mortgages, or generally those for more than $417,000, averaged

5.57 percent, up by 2 basis points from last week. Rates on adjustable mortgages were down, however. The 5/1 ARM averaged 3.87 percent, a decline of 2 basis points from the week before.

With a 5/1 ARM, the interest rate is fixed for five years and adjusted annually thereafter. Although U.S. home prices remain weak, according to the latest Mortgage Bankers Association release,

applications for home purchase loans rose 6.7 percent. Nevertheless, activity "remains relatively low by historical standards, at levels last seen in 1997," said Michael Fratantoni, MBA's vice

president of research and economics. Fratantoni said the increase largely resulted from a 10.3 percent increase in government-backed loans. Borrowers were likely motivated to apply before a

scheduled increase in Federal Housing Administration insurance premiums this month, he said. The higher demand for purchase mortgages was offset by a 6.2 percent decline in refinancing

applications, Fratantoni said in the release. With refinancing, the problem is "the pool of borrowers who have both the incentive and the ability to qualify for a refinance continues to shrink," he said.

With purchase loans and refinancing requests combined, there was 2 percent drop in mortgage applications on the week, the MBA survey found.

Find out what your monthly mortgage payment could be using Bankrate's mortgage calculator.

By -- Gregg Fields

For more information about lenders in the Santa Clarita and San Fernando Vallies Contact Darlene Alonzo: 661-713-4341 or email Darlene@darlenealonzo.com

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

http://www.frontdoor.com/Home-Finance/Top-10-Home-Remodeling-Projects/pictures/PG51

Darlene@DarleneAlonzo.com

How to Help with Japan Relief

2011-04-12T16:30:00.000-07:00

SRAR News

How to Help with Japan Relief

We continue to monitor the events unfolding in Japan since March 11, 2011, when a 9.0-magnitude earthquake struck off the shore of northeast Japan, triggering a tsunami. To assist in the rebuilding effort, the Asian American Real Estate Association has set up a relief fund. You can make a tax-deductible donation to AREAA Foundation Earthquake Relief Fund. Checks may be mailed to:

AREAA
5963 La Place Court, Suite 312
Carlsbad, CA 92008-8823

NAR has also identified four funds that we believe are well equipped to provide disaster-relief services. The star-ratings (four stars being the highest) and descriptions of the funds were pulled word-for-word from the Web site CharityNavigator.org.

Caution: Some members have reported receiving scam e-mails from organizations, some calling themselves real estate associations, purporting to collect money for Japanese tsunami relief. Here are helpful giving tips that Charity Navigator has provided for those who want to make sure their donations reach those in need.

1. AmeriCares
Overall Rating: Four Stars

AmeriCares is a nonprofit global health and disaster relief organization whose passion to help is matched by its ability to deliver. In times of epic disaster, daily struggle or civil conflict, AmeriCares restores health and saves lives by delivering donated medicines, medical supplies and humanitarian aid to people in need around the world and across the United States. Since its founding in 1982, AmeriCares has delivered more than $9 billion in aid to 147 countries. AmeriCares is able to maximize the impact of each donation due to its gift-in-kind model and the contributions received from pharmaceutical and medical supply manufacturers, as well as our partnerships with local health care providers around the world. Historically, for every $100 donated, AmeriCares is able to deliver more than $3,500 in humanitarian relief to people in need, including medicines, medical supplies, nutritional supplements and other vital aid. Donate to AmeriCares' Japan relief.

2. Habitat for Humanity International
Overall Rating: Four Stars

Founded in 1976, Habitat for Humanity International (HFHI) is an ecumenical Christian housing ministry. HFHI seeks to eliminate poverty housing and homelessness from the world, and to make decent shelter a matter of conscience and action. Habitat invites people of all backgrounds, races and religions to build houses together in partnership with families in need. Habitat has built more than 300,000 houses around the world, providing more than 1.5 million people in more than 3,000 communities with safe, decent, affordable shelter. Habitat is founded on the conviction that every man, woman and child should have a simple, decent, affordable place to live in dignity and safety. Donate to HHI's Japan relief.

3. UNICEF-USA
Overall Rating: Four Stars

The United States Fund for UNICEF was founded in 1947 to support the work of the United Nations Children's Fund (UNICEF) by raising funds for its programs and increasing awareness of the challenges facing the world's children. The oldest of 37 national committees for UNICEF worldwide, we are part of a global effort to save, protect and improve children's lives. Every moment of every day, UNICEF is on the ground providing lifesaving help for children in need. We provide families with clean water and sanitation, we vaccinate against childhood illness, and we help protect children against malaria. We provide nourishment to fight malnutrition, and we care for children affected by AIDS. We protect children from abuse, and we give them an education. We are here to make sure that all children lead a healthy, humane, and dignified life. Donate to UNICEF's Japan relief.

4. WorldVision
Overall Rating: Four Stars

World Vision is a Christian humanitarian organization dedicated to working with children, families and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice. Motivated by our faith in Jesus Christ, World Vision serves alongside the poor and oppressed as a demonstration of God's unconditional love for all people. World Vision serves all people, regardless of religion, race, ethnicity, or gender. Donate to WorldVision's Japan relief. Information provided by Southland Regional Association of Realtors.

Top 10 Home Remodeling Projects

2011-04-01T08:47:00.001-07:00

According to the 2010-2011 Remodeling magazine Cost vs. Value Report, these updates bring the best return based on their cost and the value they add to your home.

Click on the link below

Darlene Alonzo

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Keller Williams VIP Properties

License # 01791044

661-713-4341

http://www.frontdoor.com/Home-Finance/Top-10-Home-Remodeling-Projects/pictures/PG51

Darlene@DarleneAlonzo.com

From: Darlene Alonzo [mailto:dmalonzo@sbcglobal.net]
Sent: Friday, April 01, 2011 8:38 AM
To: dmalonzo@sbcglobal.net
Subject:

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

jim.puzzanghera@latimes.com

Darlene@DarleneAlonzo.com

Proposed settlement would force banks to allow short sales for delinquent homeowners

2011-03-31T09:32:00.001-07:00

The proposed deal among banks and government officials is aimed at stabilizing the real estate market and helping underwater borrowers who are months behind on mortgage payments avoid foreclosure.

By Jim Puzzanghera and Alejandro Lazo, Los Angeles Times

March 30, 2011

Reporting from Washington and Los Angeles—

Major banks may be forced to let severely delinquent homeowners sell their houses for less than the loan amounts owed as part of a broad settlement of federal and state investigations into botched foreclosure paperwork, according to government officials involved in the negotiations.

The requirement to allow so-called short sales would be in addition to forcing mortgage servicers to reduce the amount some homeowners owe on their loans, said two officials, who spoke on the condition of anonymity because negotiations are ongoing.

The goal of short sales would be twofold: provide a quicker and more economical way for banks to dispose of distressed real estate and to help stabilize the real estate market by clearing out a backlog of defaulted mortgages that are poised for foreclosure.

They would be used in situations in which borrowers were so underwater that the more costly and time-consuming process of foreclosure would seem to be the only option.

"Short sales just command a better premium than foreclosures," said Glenn Kelman, chief executive for online brokerage Redfin. "It's like day-old bagels. They never sell for the same price. If they sit there for a while, nobody wants them because houses just break down when they are left alone."

Foreclosures continue to drive down housing values, with prices in 20 major U.S. cities down an average of 3.1% in January compared with the same month a year ago, according to new data from a Standard & Poor's/Case-Shiller index. Prices in Los Angeles were down 1.8%.

The latest proposal is among those to be discussed when executives from the top five mortgage servicers meet Wednesday in Washington with state and federal officials working on a settlement that could range from $5 billion to $25 billion.

Those servicers are Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc.

It will be the first face-to-face meeting since attorneys general from all 50 states, along with federal officials from the Justice Department and other agencies, presented the banks with 27 pages of demands calling for sweeping changes to mortgage servicing, including how homeowners are treated when they try to modify their loans.

The banks have given officials a counterproposal on some of the mortgage servicing requirements that includes a single point of contact for distressed homeowners, timelines for considering modifications, an online system for checking the status of applications and a third-party review of rejections, one of the officials said.

Short sales would help accelerate the turnover of homes from borrowers who are months behind on their mortgage payments, Kelman said.

Some sellers are not eager to complete a short sale because it would force them out of their home. And lenders can withhold approval of a short sale if they don't like the price.

Banks often resist such sales because they are difficult to execute, particularly when multiple creditors and other parties are involved. In addition, short sales lock in losses for the lender that might be reduced if the sale is delayed until the market improves.

Requiring banks to allow short sales could fuel further opposition from some Republican attorneys general and members of Congress who already have criticized the broad scope of the proposed settlement.

Some House Republicans have derided possible payments of $20,000 to encourage distressed homeowners — dubbed by some as "cash for keys" — as a bailout for irresponsible behavior.

Seven Republican attorneys general recently wrote to Iowa Atty. Gen. Tom Miller, a Democrat who is leading the negotiations for the states, saying the proposals go beyond resolving damages from foreclosure paperwork problems. Those problems include robo-signing, the practice of bank employees' signing sworn documents without reading or understanding them.

"I think it's morphed into something that's bigger and different than what we talked about in the beginning," said Oklahoma Atty. Gen. E. Scott Pruitt, a Republican who organized the signing of one of the letters.

Pruitt said he might not join the settlement if it is too broad. And with 24 Republican attorneys general nationwide, opposition could limit the size of a settlement and how many people it covers.

Miller has been in contact with some of the attorneys general who have raised concerns, said spokesman Geoff Greenwood.

"We'll do the best we can to reach a comprehensive agreement that is in everyone's best interest," Greenwood said. "At the end of the day, an attorney general must decide for himself or herself whether to sign on to this, assuming we get a settlement."

In Southern California, short sales made up an estimated 19.8% of the market for previously owned homes last month. That was up from an estimated 18.4% in February 2010 and 12% in February 2009, according to DataQuick Information Services of San Diego.

Combined with foreclosures, these so-called distressed sales made up more than half of homes sold in the Southland last month.

Though struggling homeowners escape weighty mortgage debts quickly under a short sale, they don't get away unscathed.

Their credit scores are damaged enough to limit their borrowing capability for years, though the damage is perhaps less severe than in foreclosure. Money for down payments and renovations would be lost, and there may be tax consequences.

The California Assn. of Realtors has been pushing for short sales to be made simpler. Earlier this month, in an open letter in the Los Angeles Times and six other California newspapers, the group called on banks to approve more short sales and for regulators to streamline the process.

The real estate agents argued that short sales are better for consumers and banks.

alejandro.lazo@latimes.com

Times staff writer E. Scott Reckard contributed to this report.

If you or someone you know may be considering selling their home or facing foreclosure, give me a call

for a private, no obligation, consultation to determine the best solution for your situation.

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

http://www.bankrate.com/finance/real-estate/5-dirt-cheap-home-staging-ideas-1.aspx

Darlene@DarleneAlonzo.com

5 dirt-cheap home staging ideas

2011-03-28T08:49:00.000-07:00

5 dirt-cheap home staging ideas

By Melissa Neiman • Bankrate.com

Use these DIY tips to boost your home's sales appeal at little or no cost.

* Please note, the sender's e-mail address has not been verified.

Housing Will Add to the Economy's Growth This Year

2011-03-21T10:40:00.001-07:00

It’s another small sign that the economy is improving: Flickers of life in the housing industry. True, it’s nowhere near the usual pattern, in which housing soars as a recession ends. But look for the industry to make a small contribution to GDP growth this year instead of subtracting from it, as it has in 17 of the past 20 quarters.

The industry will also add jobs this year -- a small gain of about 125,000, after shedding 1.44 million since 2006. Housing starts are slowly inching up, getting a big boost from apartment construction in January (although this volatile segment did take a dive in February). Still, with mortgages tougher to get and with would-be buyers spooked by a three-year decline in home prices, rental demand is strong. That’s shown by the homeownership rate, which is down to 66.5% from a peak of 68% and on its way back to its historical norm of 64%. Each percentage point equals about 1 million households.

Starts of single-family houses will be up a smidge this year, climbing to about 650,000 from about 590,000 last year. That’s about one-third of the total racked up each year from 2004 to 2006. They remain in the dumps after the two lowest years on record in 2009 and 2010. As an executive with a major builder says, “It feels as if we’re not falling as fast as we were. But it’ll be a long claw back.”

There’s also a lift from remodeling -- some from buyers of empty, foreclosed homes and some from owners opting to stay put and spruce up their houses rather than trying to trade up and go through the hassle of selling and buying.

New-home sales will linger near historical lows, around 350,000 this year. Traffic at model homes is on the rise, but sales will take a while to materialize. Thomas Lawler, a Virginia housing consultant, says it’s good that construction remains so low, adding that “as demand increases and supply remains subdued, prices will level off.”

Sales of existing homes will creep higher, to just over 5 million this year from just under that mark last year. Mortgage rates remain attractive, with the 30-year fixed rate loan near 5%, about where it was one year ago. The rate is likely to creep toward 5.5% this year, but any dampening effect will be offset by the positive impact of additional jobs in a growing economy. A bigger impediment to sales is that tight lending standards -- more money down, a higher cutoff in credit scores -- limit potential buyers.

Another good sign: Fresh loan delinquencies are waning. These track the job market -- specifically, the filing of initial claims for unemployment benefits. But foreclosures won’t show a letup. The probe into shoddy paperwork by banks on mortgages delayed the process, so we expect foreclosures to climb from 1.8 million last year to 2 million in 2011. One in four mortgages remain underwater, but fewer of these homeowners will go into default as layoffs continue to ease and hiring shows modest gains.

Prices will continue to slide lower through midyear or so -- an additional 4% on average, a bit more in once-hot markets, including Tampa, Las Vegas and Phoenix. Prices will be stable in many cities that dodged the boom-bust cycle -- for instance the wide area between the Mississippi River and the Great Smoky Mountains.

Signs of improvement, then, indicate that the depression in housing is nearly over. But major gains remain in the distance. Supply and demand are still out of whack, and balance will come only with substantial job creation and a renewed appetite among consumers.

By Jerome Idaszak, Associate Editor, The Kiplinger Letter

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

The Most-Overlooked Tax Deductions

2011-03-21T10:35:00.000-07:00

The Most-Overlooked Tax Deductions

December 2010

Every year, the IRS dutifully reports the most common blunders that taxpayers make on their returns. And every year, at or near the top of the “oops” list is forgetting to enter their Social Security number at the top of the tax form -- or making a mistake when entering those nine digits.

No doubt about it: The opportunity to make mistakes is almost unlimited, and missed deductions can be the most costly. About 48 million of us itemize on our 1040s -- claiming more than $1 trillion worth of deductions. That’s right: $1,000,000,000,000, a number rarely spoken out loud until Congress started debating economic-stimulus plans to combat the Great Recession.

Another 92 million taxpayers claim about $700 billion worth using standard deductions—and some of you who take the easy way out probably shortchange yourselves. (If you turned 65 in 2010, remember that you now deserve a bigger standard deduction than the younger folks.)

Yes, friends, tax time is a dangerous time. It’s all too easy to miss a trick and pay too much. Years ago, the fellow who ran the IRS at the time told Kiplinger's Personal Finance magazine that he figured millions of taxpayers overpaid their taxes every year by overlooking just one of the money-savers listed below:

1. State sales taxes. Although all taxpayers have a shot at this write-off, which has recently been extended through 2011, it makes sense primarily for those who live in states that do not impose an income tax. You must choose between deducting state and local income taxes or state and local sales taxes. For most citizens of income-tax states, the income tax is a bigger burden than the sales tax, so the income-tax deduction is a better deal.

The IRS has tables that show how much residents of various states can deduct. But the tables aren’t the last word. If you purchased a vehicle, boat or airplane, you get to add the state sales tax you paid to the amount shown in the IRS tables for your state, to the extent that the sales-tax rate you paid doesn’t exceed the state’s general sales-tax rate.

The same goes for any homebuilding materials you purchased. These add-on items are easy to overlook, but they could make the sales-tax deduction a better deal even if you live in a state with an income tax. The IRS even has a calculator on its Web site to help you figure the deduction, which varies depending on the state where you live and your income level.

2. Reinvested dividends. This isn't really a tax deduction, but it is an important subtraction that can save you a bundle. And this is the break that former IRS commissioner Fred Goldberg told Kiplinger's a lot of taxpayers miss.

If, like most investors, your mutual fund dividends are automatically used to buy extra shares, remember that each reinvestment increases your tax basis in the fund. That, in turn, reduces the taxable capital gain (or increases the tax-saving loss) when you redeem shares. Forgetting to include the reinvested dividends in your basis results in double taxation of the dividends -- once when you receive them and later when they’re included in the proceeds of the sale. Don’t make that costly mistake. If you’re not sure what your basis is, ask the fund for help.

3. Out-of-pocket charitable contributions. It’s hard to overlook the big charitable gifts you made during the year, by check or payroll deduction (check your December pay stub). But the little things add up, too, and you can write off out-of-pocket costs incurred while doing good works. For example, ingredients for casseroles you prepare for a nonprofit organization’s soup kitchen and stamps you buy for your school’s fundraising mailing count as a charitable contribution. Keep your receipts and if your contribution totals more than $250, you’ll need an acknowledgement from the charity documenting the services you provided. If you drove your car for charity in 2010, remember to deduct 14 cents per mile.

4. Student-loan interest paid by Mom and Dad. Generally, you can only deduct mortgage or student-loan interest if you are legally required to repay the debt. But if parents pay back a child’s student loans, the IRS treats the money as if it was given to the child, who then paid the debt. So, a child who’s not claimed as a dependent can qualify to deduct up to $2,500 of student-loan interest paid by Mom and Dad. And he or she doesn’t have to itemize to use this money-saver. Mom and Dad also don’t get the interest deduction since they were not liable on the debt.

5. Job-hunting costs. If you’re among the millions of unemployed Americans who were looking for a job in 2010, keep track of your job-search expenses. If you’re looking for a position in the same line of work, you can deduct job-hunting costs as miscellaneous expenses if you itemize, but only to the extent that the total of your total miscellaneous itemized deductions exceed 2% of your adjusted gross income. Job-hunting expenses incurred while looking for your first job don’t qualify. Deductible job-search costs include, but aren’t limited to --
• Food, lodging and transportation if your search takes you away from home overnight
• Cab fares
• Employment agency fees
• Costs of printing resumes, business cards, postage, and advertising

6. Moving expenses to take your first job. As we just mentioned, job-hunting expenses incurred while looking for your first job are not deductible. But, moving expenses to get to that position are. And you get this write-off even if you don't itemize.

To qualify for the deduction, your first job must be at least 50 miles away from your old home. If you qualify, you can deduct the cost of getting yourself and your household goods to the new area, including 16 ½ cents per mile for driving your own vehicle for a 2010 move, plus parking fees and tolls.

7. Military reservists’ travel expenses. Members of the National Guard or military reserve may tap a deduction for travel expenses to drills or meetings. To qualify, you must travel more than 100 miles from home and be away from home overnight. If you qualify, you can deduct the cost of lodging and half the cost of your meals, plus 50 cents per mile for 2010 for driving your own car to get to and from drills. In any event, add parking fees and tolls. You get this deduction regardless of whether you itemize.

8. Health insurance deduction to reduce self-employment tax. Business owners have always been allowed to deduct health insurance premiums for themselves and their family in computing adjusted gross income on the front page of Form 1040. For 2010, they can also deduct the cost of those health insurance premiums in calculating self-employment tax on Schedule SE.

The IRS has hidden this write-off on line 3 of Schedule SE. On that line, you are told to add your self-employment income from lines 1 and 2, subtract the amount claimed on line 29 of Form 1040 (your health insurance premiums) and enter the net amount on line 3. Since the write-off is not on a separate line and is not clearly identified, it will be far too easy for many self-employed persons to miss unless you are fully aware of this tax break and are looking for it.

9. Child-care credit. A credit is so much better than a deduction; it reduces your tax bill dollar for dollar. So missing one is even more painful than missing a deduction that simply reduces the amount of income that’s subject to tax.

If you pay your child-care bills through a reimbursement account at work, it's easy to overlook the child-care credit. Although only $5,000 in expenses can be paid through a tax-favored reimbursement account, up to $6,000 (for the care of two or more children) can qualify for the credit. So, if you run the maximum through a plan at work but spend even more for work-related child care, you can claim the credit on as much as $1,000 of additional expenses. That would cut your tax bill by at least $200.

10. Estate tax on income in respect of a decedent. This sounds complicated, but it can save you a lot of money if you inherited an IRA from someone whose estate was big enough to be subject to the federal estate tax.

Basically, you get an income-tax deduction for the amount of estate tax paid on the IRA assets you received. Let’s say you inherited a $100,000 IRA, and the fact that the money was included in your benefactor's estate added $45,000 to the estate-tax bill. You get to deduct that $45,000 on your tax returns as you withdraw the money from the IRA. If you withdraw $50,000 in one year, for example, you get to claim a $22,500 itemized deduction on Schedule A. That would save you $6,300 in the 28% bracket.

11. State tax paid last spring. Did you owe tax when you filed your 2009 state income tax return in the spring of 2010? Then, for goodness’ sake, remember to include that amount in your state-tax deduction on your 2010 return, along with state income taxes withheld from your paychecks or paid via quarterly estimated payments.

12. Refinancing points. When you buy a house, you get to deduct in one fell swoop the points paid to get your mortgage. When you refinance a mortgage, though, you have to deduct the points over the life of the loan. That means you can deduct 1/30th of the points a year if it’s a 30-year mortgage. That’s $33 a year for each $1,000 of points you paid -- not much, maybe, but don’t throw it away.

Even more important, in the year you pay off the loan -- because you sell the house or refinance again -- you get to deduct in one fell swoop all of the as-yet-undeducted points. There’s one exception to this sweet rule: If you refinance a refinanced loan with the same lender, you add the points paid on the latest deal to the leftovers from the previous refinancing -- and deduct that amount gradually over the life of the new loan.

13. Jury pay turned over to your employer. Many employers continue to pay their employees’ full salary while the workers serve on jury duty, and some require employees to turn over their jury pay they receive from the court to the company coffers. The only problem is that the IRS demands that you report those jury fees as taxable income. To even things out, you get to deduct the amount you pay to your employer.

But how do you do it? There’s no line on the Form 1040 labeled jury fees. Instead the write-off goes on line 36, which purports to be for simply totaling up the deductions that get their own lines. Add your jury fees to the total of your other write-offs and write “jury pay” on the dotted line to the left.

14. American Opportunity Credit. This tax credit, which has been extended through 2012, is available for up to $2,500 of college tuition and related expenses paid during the year. The full credit is available to individuals whose modified adjusted gross income is $80,000 or less ($160,000 or less for married couples filing a joint return). The credit is phased out for taxpayers with incomes above those levels. This credit is juicier than the old Hope credit – it has higher income limits and bigger tax breaks, and it covers all four years of college. And if the credit exceeds your tax liability (regular and AMT), it is partially refundable.

15. Making Work Pay credit. You’ve probably been enjoying the fruits of this credit via reduced payroll tax withholding throughout the year. But to lock in your savings–by reducing your tax bill by $400 if you’re single or $800 if you’re married and file a joint return–you’ll need to actually claim the credit on your 2010 tax return—and you’ll use Schedule M to do so. The credit is equal to 6.2% of your earned income, capped at $400 or $800. For single filers, it starts phasing out at $75,000 of adjusted gross income and dries up at $95,000. The phase-out zone for couples is $150,000 to $190,000.

16. Credit for energy-saving home improvements. You can claim a tax credit equal to 30% of the cost of energy-saving home improvements up to a maximum of $1,500. This cap applies to both 2009 and 2010 combined, so if you claimed the maximum $1,500 in 2009, you don’t get another crack at it for 2010. The credit applies to biomass fuel stoves, qualifying skylights, windows and outside doors, and high-efficiency furnaces, water heaters and central air conditioners. For 2011, this credit goes back to pre-2009 limits (for example, $500 maximum credit for all years with no more than $200 for windows).

There’s also no dollar limit on the separate credit for homeowners who install qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. Your credit can be 30% of the total cost (including labor) of such systems installed through 2016.

By Kevin McCormally, Editorial Director, Kiplinger.com

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

Cookie Couture One of Oprah Winfrey's Favorite Things 2009 is Located in our very own Awesometown

2011-03-16T14:32:00.001-07:00

I look forward to visiting this yummy store!

The Cookie Couture

Almost everyone loves homemade cookies! But there’s one brand of cookie that even Oprah can’t resist – The Cookie Couture. Victoria Duvall’s Valencia based bakery is garnering national attention, and after 23 years of baking, it’s no wonder! What started as a hobby has now become a thriving business. The single mother of three infuses her cookies with different ingredients, experimenting with creative tastes from rich and sweet to exotic and fruity!

The business started in her kitchen where she generated a positive reputation amongst her Valencia neighbors. But in 2009 when a friend had Victoria send a batch of cookies to Winfrey’s Chicago office, the business really took off. Before she knew it, Victoria was shipping multiple orders of her cookie creations to Winfrey’s offices and she was soon contacted by a Winfrey representative who stated that her cookies would be featured as one of Oprah’s Favorite Things on the O List in O Magazine’s October 2009 issue . Shortly after the cookies were featured, Victoria began receiving orders in such great quantities she had to open her own bakery. The 2,000-square-ftoot bakery complete with a shipping department was opened on a leap of faith that the orders would continue, and they certainly did. In October 2010, Victoria branched out even further and opened a retail store in Valencia, where you can purchase the delectable cookies onsite.

The Charme Collection cookies are topped and filled with delicious ingredients. The cupcake-shaped cookies are dipped in chocolate and sold for $3.50 each.

The Cookie Couture is located at 24201 Newhall Ranch Road, six doors down from California Pizza Kitchen. To order, call (661) 313-4282 or visit www.thecookiecouture.com.

For more on Victoria and The Cookie Couture, LLC, check out Martha Garcia’s article in The Santa Clarita Valley Signal.

Foreclosure Happens, But There Are Solutions

2011-03-16T11:09:00.001-07:00

Foreclosure Happens, But There Are Solutions

The best mortgage advice has nothing to do with interest rates or loan-to-value ratios. The magic words are: don't ever miss a mortgage payment!

Sure, you took out your mortgage with every intention of being a responsible homeowner, making all payments on time, keeping your homeowner's insurance current and your taxes paid.

Still, stuff happens. People lose jobs, become temporarily disabled, incur unexpected medical expenses or have to make a choice between paying the mortgage or repairing the car that gets them to the job that pays that mortgage. Perhaps the classic decision is whether to keep the roof over one's head or repair the leak that threatens to bring it crashing down.

Hopefully you will never be confronted with the reality of defaulting on your home mortgage, but should it happen, a little knowledge can actually be a very good thing.

Mortgage notes usually carry a grace period, 15 days is typical but some are as short as 10 days. Many people "play the float" that is, delay through most of the grace period before making payment, and no one, including the lender thinks very much about it. On day 16, however, a late fee is assessed. At this point there are no ramifications beyond that late fee and maybe a "friendly reminder" call from the lender's customer service department. The late payment probably won't even show up on the borrower's credit report. On Day 30 that changes. At that point the borrower is in default and things quickly turn serious.

Laws regarding mortgage default and foreclosure differ from state to state and mortgage lenders and servicing companies vary in the way they approach delinquent borrowers. The big mortgage gatekeepers such as Freddie Mac, FHA and the VA have changed their approach to managing delinquencies in the last ten years, having finally realized that it is more cost effective to help a borrower to stay in his home than to pursue foreclosure and then confront the need to deal with owning, managing, and selling the resulting real estate. Consequently, there are probably a hundred different scenarios that can play out as a mortgage delinquency progresses and at least that many ways a borrower can deal with his default problems. All we can do is talk about some of the possibilities and some of the options.

Starting on day 16, additional debt is incurred in the form of the mortgage late fee - usually a percentage of the principal balance; three percent is typical which, on a $300,000 mortgage is plus or minus a $100 penalty and, if the next payment and the next are also missed, the cost of bringing the mortgage current grows pretty fast. Past day 30, some lenders will allow a borrower to make a partial payment of the past due amount; others will insist that everything be brought current; lenders may even return a check if it does not cover both the current and the past due payments and maybe the late charges as well.

By day 45 the phone calls from the mortgage collectors will be coming pretty regularly. Most states have rules regarding collection activities and telephone calls including their frequency, content (no threats are permitted), and timing (early morning and late night calls are generally off limits,) but the calls, within legal boundaries, will be unremitting and the tone can vary from "gee, we just want to help" to aggressively demanding.

About 60 to 90 days after the initial missed payment the lender will send a notice of default, usually by Certified Mail, giving the borrower a finite period in which to cure the situation by paying all past due amounts, and by now collection costs are probably being added to the late fees. Once that remedial period passes, the collection department will refer the loan to the lender's legal department which will, after another period of time, send the documents to a local attorney to begin foreclosure proceedings. By this time serious legal fees are accruing.

A foreclosure is a legal event and there are benchmarks that must be met. Once the case is turned over to attorneys, the impending foreclosure must be advertised, usually in both the local papers and in the largest and closest metropolitan daily. The entire process can take a very long time from initial default to the actual public auction of the property. If a member of the military is an owner of the property, there are additional safeguards required by federal and in some cases state laws From the beginning of the process, however, the meter is running. The longer the foreclosure takes, the greater the debt that accrues and the larger the liability the homeowner has, something that will become critical down the road.

The law in most states gives the homeowner every opportunity to stop the process leading to foreclosure, right up to the minute that the auctioneer's gavel comes down and sometimes even beyond. In some states there is a period after the foreclosure during which the homeowner can redeem the property (right of redemption.). It is important to know this because less than ethical lenders and servicing companies will tell borrowers that, once default has occurred, the acceleration clause of the mortgage is invoked and the entire mortgage balance is due and payable - in other words, if a borrower misses his $1,200 payment for several months and now owes $3,600 plus late fees and legal expenses, he must come up with the entire $150,000 mortgage balance in order to stop the foreclosure. This may be technically true but it is rarely invoked in practice.

Recent Article provided by Gene Bleecker

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

Median Price Posts a Record Low and Affordability Hits a Record High

2011-03-08T11:57:00.001-08:00

January 2011 (SCV)

Santa Clarita Valley Home Sales Slow Even as the Median Price Posts a Record Low and Affordability Hits a Record High

Despite record-high affordability for first-time homebuyers, sales of existing single-family homes and condominiums in the Santa Clarita Valley fell during January due to seasonal factors and ongoing consumer concerns regarding the economy, the Southland Regional Association of Realtors reported Monday, Feb. 21.

A total of 117 homes changed owners last month, down 14.6 percent from a year ago. It was the lowest total for a January since 2008 when a record low 99 escrows closed.

Condominium sales dropped 12.7 percent from a year ago, also the lowest tally since January 2008. Condo sales had been trending higher, but started to slacken after federal tax credits ended.

“Perception is critical,” said Sal Aranda, president of the Association’s Santa Clarita Valley Division. “Prospective buyers understand all the reasons why buying now makes sense — low interest rates, low prices, limited competition, a growing inventory — but if buyers think the economy is shaky, they sit on the fence, preferring to wait, even if it means missing an opportunity.”

Realtors expect short sales to be a major factor in the market for at least another year or two, making “it easy to see that properties are undervalued” and more affordable than at anytime in decades, Aranda said. Indeed, the California Association of Realtors recently reported that the percentage of first-time buyers who could afford to purchase an entry-level home in California rose to 69 percent in the fourth quarter of 2010, matching the record high set in the first quarter of 2009.

“Seeing sales dip in January is not unusual due to typical seasonal factors,” said Jim Link, the Association’s chief executive officer. “Activity should pick up in the coming months, but another reason why January sales fell may be because short sales simply take longer to complete than traditional transactions.”

The median price of the 117 homes sold in January was $345,000, down 13.5 percent from a year ago — a new record low for this cycle, dipping 10.1 percent below the prior low of $385,000 set in December 2008.

The condo median price of $254,000 was up 8.1 percent from a year ago. The median is 23.9 percent higher than the record low of $205,000, which came in January 2009.

“It will take time to find some measure of normalcy, yet I’m confident Santa Clarita — named one of the best places to live in California and blessed with incredible schools — will do just fine,” Aranda said. “Banks are starting to lend again and soon enough buyers will see that affordability will never be better and that they can get into a home for as little as 3.5 percent down.”

There were a total of 1,162 active listings throughout the Santa Clarita Valley at the end of January. That was 46.2 percent higher than a year ago.

At the current pace of sales, that represents a 7.0-month supply — above the 5- to 6-month supply that represents a balanced market. Only recently has the inventory started to move higher.

Pending sales — a measure of future resale activity — were off 6.6 percent from a year ago with 309 open escrows at the end of January compared to 331 a year ago.

For more information on particular areas or neighborhood contact Darlene Alonzo, Keller Williams VIP Properties 661-713-4341. License # 01791044

By The Southland Regional Association of Realtors® is a local trade association with more than 10,000 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.

Mortgage update

2011-02-28T12:30:00.001-08:00

February 28, 2011

The Housing Market Update

Prospect Mortgage

Brought to you by:

Brian Woolley
Sr. Loan Officer
Office: 661-964-1202
Cell: 661-645-3499
bwloans@ca.rr.com

25124 Springfield Ct

Valencia, CA 91355
www.bwloans.net

Housing Picture Continues to Brighten:

Existing Home Sales continued their upward climb in January. This is the fourth month in a row where we have seen month-over-month gains in the number of units sold. The National Association of Realtors reported that sales rose 2.7% from December. Also, the inventory levels decreased again:

The number one reason that the housing market tanked was due to over supply. So, with home sales increasing and inventory levels decreasing, this is certainly a trend with some momentum. All cash sales and distressed sales did increase last period. But any way that the excess inventory is gobbled up is good. It certainly shows that the demand is there and that investors are snapping up properties before prices rise. Maybe you should too?

What Happened to Rates Last Week:

Mortgage backed securities (MBS) gained +83 basis points last week which caused 30 year fixed rates to move lower. We had a series of stronger than expected economic reports such as Consumer Confidence, Existing Home Sales and Durable Goods Orders. Normally, this positive economic data would have moved mortgage rates higher. However, mortgage backed securities (and therefore mortgage rates) benefitted from continued concern over the stability of the Middle East. U.S. Treasuries and other bonds such as mortgage backed securities saw strong demand as a pure safety play.

What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises:

Date	ET	Release	For
28-Feb	8:30	Personal Income	Jan
28-Feb	8:30	Personal Spending	Jan
28-Feb	8:30	PCE Prices - Core	Jan
28-Feb	9:45	Chicago PMI	Feb
28-Feb	10:00	Pending Home Sales	Dec
1-Mar	10:00	Construction Spending	Jan
1-Mar	10:00	ISM Index	Feb
1-Mar	15:00	Auto Sales	Mar
1-Mar	15:00	Truck Sales	Mar
2-Mar	7:00	MBA Mortgage Index	25-Feb
2-Mar	7:30	Challenger Job Cuts	Feb
2-Mar	8:15	ADP Employment Change	Feb
2-Mar	10:30	Crude Inventories	26-Feb
2-Mar	14:00	Fed's Beige Book	Mar
3-Mar	8:30	Initial Claims	26-Feb
3-Mar	8:30	Continuing Claims	19-Feb
3-Mar	8:30	Productivity-Rev.	Q4
3-Mar	8:30	Unit Labor Costs - Revised	Q4
3-Mar	10:00	ISM Services	Feb
4-Mar	8:30	Nonfarm Payrolls	Feb
4-Mar	8:30	Nonfarm Private Payrolls	Feb
4-Mar	8:30	Unemployment Rate	Feb
4-Mar	8:30	Average Workweek	Feb
4-Mar	8:30	Hourly Earnings	Feb
4-Mar	10:00	Factory Orders	Jan

Prospect Mortgage
25124 Springfield Ct, Valencia CA, 91355
Phone: 661-964-1202
To Unsubscribe, please click on the following email link: bwloans@ca.rr.com
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Courtesy of Brian Woolley Prospect Mtg

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

The inconsistent cramdown policy

2011-02-01T15:51:00.001-08:00

The inconsistent cramdown policy

By Kelli Galippo • Jan 25th, 2011 • Category: real estate newsflash

As lenders continue to resist mortgage principal reduction, homeowners are beginning to ask why they cannot be given the same debt forgiveness extended to big corporations such as General Motors (GM) and Chrysler. In an editorial citing the 2009 bankruptcy of the two companies, the New York Times delves into the inconsistent behavior of lenders when it comes to cramdowns.

Lenders’ willingness to compromise depends on exactly who is asking for a break. When GM and Chrysler filed for Chapter 11 bankruptcy, billions of dollars of debt and liabilities were wiped off their plates. Homeowners and individuals also have the option of claiming bankruptcy, but they will not be welcomed back into the open arms of lenders as quickly as those corporations.

So the question being asked is this: Why are banks so willing to forgive the debt of large corporations, but completely refuse to work on the compromise with homeowners? The New York Times suggests appointing officers to evaluate the specific circumstances surrounding each mortgage default and make a smart decision that helps everyone. Homeowners would get another opportunity for a refinance or cramdown, and lenders would benefit from another chance to get a new loan instead of another home to add to their shadow inventory.

first tuesday take: The reason why lenders refuse to cut homeowners a break, but willingly forgive billions of dollars of debt from big corporations is simple: politics. Unfortunately, lenders are doing what they do best by extending mercy to business giants, which ultimately protects them from the political cold-shoulder. In the long run, it is more lucrative to stay in the good graces of politicians and business executives, and that makes forgiving their debt an easy decision. However, agreeing to a cramdown for one homeowner means agreeing to a cramdown for all homeowners, and that is just too much lost profit. [For more information regarding cramdowns, see the January 2010 first tuesday article, Cramdowns, cramdowns, cramdowns!]

The government has emphasized the importance of homeownership as a moral issue for decades. Lenders have jumped on the bandwagon by excusing their unwillingness to forgive principal with the notion that homeowners are morally obligated to pay back what they owe. However, the grey area of a seemingly black and white issue becomes evident during economic peaks and valleys. If lenders knowingly originated thousands of subprime, Alt-A or adjustable rate mortgages (ARMs) during the Millennium Boom (2004 to 2007) — risky mortgages with high interest rates, balloon payments and great disregard for a homeowner’s risk of default — are they not then morally responsible for the thousands of resulting foreclosures? By originating those loans in the first place, lenders essentially catalyzed the foreclosure crisis themselves. Why, then, is all the blame directed at the homeowner?

Eventually, they will be stuck with no choice but to agree to loan modification and principal reduction, since roughly 250,000 foreclosures are started throughout the nation each month. Until then, it’s not difficult to figure out why lenders favor those with wealth and power.

Readers are encouraged to reproduce and/or distribute this article.

Copyright © 2010 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 20069, Riverside, CA 92516.

Housing Starts Expected to Climb in 2011

2011-01-20T08:29:00.001-08:00

Housing Starts Expected to Climb in 2011

New home construction is looking up this year!

During an economic update Wednesday at the International Builders' Show in Orlando David Crowe, chief economist of the National Association of Home Builders, projected single-family housing starts to rise by 21 percent in 2011, reaching 575,000 units.

The estimate is slightly more conservative than the Dec. 30 projection of 716,000 housing starts this year by Lawrence Yun, chief economist of the National Association of REALTORS®. Both estimates assume sustained job growth, increasing U.S. population, as well as continued low interest rates driving construction.

Yun expects about 2 million jobs to be added in 2011. However, as NAHB presenter Frank Nothaft, chief economist for Freddie Mac, pointed out, 2011 got off to a slow start with nonfarm payrolls rising only by 103,000 in December. He called the figure weaker than expected.

Credit is another factor. Lending remains tight, but if it opens up with safe underwriting standards for creditworthy buyers, Yun says there would be a bigger boost to the housing market with spillover benefits for the broader economy. The 30-year fixed-rate mortgage is forecast to rise gradually to 5.3 percent around the end of 2011; at the same time, unemployment should drop to 9.2 percent, according to NAR.

In addition, over the past 10 years the U.S. has added 27 million people. Continued population growth will also spur home construction and sales. “All the indicator trends are pointing to a gradual housing recovery,” Yun says.

An even more conservative projection of 492,000 housing starts in 2011 was released by the Portland Cement Association during the International Builders Show Wednesday. Edward Sullivan, PCA chief economist, does not expect significant increases until 2012 due to tight lending standards, a high home inventory count, and unstable housing prices. He also says that new home construction will vary considerably by region.

-- Erica Christoffer, REALTOR® Magazine

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341

Kindergarten Registration for West Creek Academy

2011-01-12T17:41:00.001-08:00

It’s that time of year again for Kindergarten Enrollment! If you have a child who will be entering West Creek Elementary school this year, below is the information you will need to register them.

Provided to you by West Creek Academy

WEST CREEK ACADEMY

GATEWAY TO THE WORLD

28767 N. WEST HILLS DRIVE

SANTA CLARITA, CA 91354

(661) 294-5385

Cory C. Pak, Principal

Kindergarten Round-Up

2/28/2011 Through 3/4/2011

Kindergarten registration packets are now available from the school office.

Packets must be completed and returned to the school during the week of

Kindergarten registration on February 28 through March 4, 2011. In order for a

child to enter kindergarten, he/she must be five years old on or before December 2,

2011. There are no exceptions to this California State requirement.

The time of registration is not an indicator of placement. Kindergarten

registrations taken throughout the week of Round-up will be treated equally.

Please contact West Creek Academy at 661 294-5385 if there is any uncertainty as

to the school of attendance. If you know of any parents with school age children,

please pass this information along.

The following is required to complete registration:

· Original birth certificate provided by the County Registrar/County Recorder

or passport.

· Two utility bills or lease/escrow papers for proof of address to attend West

Creek Academy.

· Verification of immunization against:

Diphtheria, Tetanus and Pertussis (DTP)

Polio (OPV or IPV)

Measles, Mumps and Rubella (MMR)

Hepatitis B

Varicella (chickenpox)

· Verification of the results of a Mantoux Tuberculosis Test

· Dental screening (forms will be available at time of registration)

As always….feel free to contact me with any of your real estate questions!

Darlene Alonzo

Realtor@

Keller Williams VIP Properties

License # 01791044

661-713-4341