The builders, who are working for a 5% fee, say that prices are at least 15%, if not 35% percent below where they were at the peak. Many of the homes, which vary from a low of $300,000 to a high of $1 million, are selling at about $300 a square foot. At one time, extremely successful high-end communities here sold for as much as $450 a square foot.

The Irvine Company has basically decided to take a huge chunk of land to re-ignite the local new home market and protect the value of the 798-square-miles that it owns here. The approach appears to be working. Several of the fee builders, their coffers now filling, are negotiating to purchase additional parcels at high dollar amounts from The Irvine Company that they can control.

A recent case study shows  80% of the buyers are Asian. Which became apparent over model tours. Also 1/3 off all sales are cash buyers. Most other buyers are putting enough money down to get below the $729,000 conforming loan limit.

Asian buyers are drawn by the public schools in Irvine, some of the best in Southern California. The Irvine Company made a conscious decision when it began selling land to home builders to emphasize education. The Irvine Unified School District, Davis says, “has played a major role” in the success of home sales on The Ranch. “Irvine is one of the best school districts in the city and state.”

The News With The Irvine Company – Fastest Selling Homes In The US – Sells Out Each Phase At Woodbury, Orange County Real Estate is a post from: braddhesi.com

THIS IS A GOOD QUESTION…

Today a new report found that of 111 housing market experts and economists surveyed, nearly half foresee a double-dip in home prices happening this year, “and not a single panelist expects national home prices to recover to the pre-bubble trend in the coming 5 years.” In December, only 15 percent projected a new post-crash low would materialize for home prices. We are now less than 1 percent away from that mark, according to the survey.

“Overall, the sentiment among our expert panel regarding the U.S. housing market outlook continues to deteriorate,” writes Shiller. “Now they are expecting only a weak recovery, and even that is not until 2013.”

This report comes on the same day that Fannie Mae’s chief economist put out a report claiming uncertainty in Japan and trouble in Libya will directly affect housing’s recovery, specifically citing rising gas prices.

We expect home sales to remain soft in the near term, given uninspiring leading indicators,” notes Doug Duncan. It’s really uninspired and fearful consumers, though, that will stunt the recovery.

“They’re looking at the weakness in the economy, now battered by our relationship with Japan and a rise in oil prices, and they’re asking, is this a good time to borrow $200,000 to buy a house? I don’t think so,”

You might think gas prices are a lame excuse for another dip in housing, but they’re not.

In the Spring market, historically, families are looking to move out and up to a larger home. Those homes are usually further from the city center. Transportation costs are most definitely a factor, especially for low to middle income buyers, who happen to make up the bulk of the market.

Yesterday I noted that stock market investors didn’t seem to care about the nearly 10 percent drop in existing home sales in February. Tomorrow morning we get numbers on the sales of new construction. As opposed to existing sales numbers, these numbers are based on contracts signed in February, not closings. That means the numbers should be somewhat better, given that’s the beginning of the real Spring market.

Is Housing Really in Recovery? Is Gas Prices Effecting The Recovery? is a post from: braddhesi.com

A borrower that becomes delinquent on their mortgage, completes a short sale, gives the property back using a deed-in-lieu, or is foreclosed upon, will have their credit negatively impacted.

• Negative impact on a credit report is generally limited to 7 years.
• Current guidelines allow qualification for Federal National Mortgage Association (Fannie Mae) insured loan 5 years after a foreclosure, 4 years after a deed-in-lieu, or 2 years after completion of a short sale.
• Declaring bankruptcy to delay a foreclosure, or to wipe away a deficiency judgement after foreclosure, will impact the borrowers credit report for 10 years.

Deficiency Judgments-

Depending on the state and loan type, the borrower may owe the difference between the amount owed and the amount recovered at foreclosure auction (the deficiency). The owner may be able to negotiate a release in full, if they are able to complete a short sale.

It is important to note that if there are multiple loans on the property, for example a 1st and a 2nd mortgage, and only one forecloses, the borrower will likely remain liable for the loan that did not foreclose, even though the borrower no longer has any ownership of the home. Many make the mistake of thinking the loan that did not foreclose must get a deficiency judgment in order to collect, but because they did not foreclose, their loan remains in full force and effect against the borrower—even if the lenders secured interest in the property was wiped out by the foreclosure.

Purchase Money Rule-

In states that offer it, the purchase money rule limits lenders that made purchase money loans to recovering their investment from the property alone, rather than the borrower. A purchase money loan is any loan made at the time of sale, and used towards the purchase of the property. The theory behind this rule is that the borrower could not have purchased the property without the lender, and therefore bears some responsibility as a party to the transaction.

Eviction- 

The prior owner or occupants will have to move after the sale, one way or another. Occupants refusing to move will only be faced with an unlawful detainer lawsuit, an eviction judgment, and forced removal by law enforcement. The new owner will likely also receive a judgment against the occupant, for market rents from the date of the auction sale to the eviction. Whether the prior owner, or a renter, it is usually best for the occupant to negotiate cash for keys with the new owner.

Cash for Keys-

A buyer or lender at the foreclosure sale may offer cash to the prior owner or renter, to move quickly and leave the property clean. Cash for keys arrangements give occupants the resources to find new housing and is a great way to avoid the time and processing of an eviction.

Income Tax-

A prior owner may receive a 1099 for the forgiven debt in the amount of the deficiency between the amount owed and the amount recovered at auction. Though recent law changes have eased the burden, this forgiven debt may be treated as income, resulting in state and federal income tax.

The owner may also be responsible for capital gains tax, though thanks to the substantial captial gains tax on a primary residence, this is unlikely to affect the majority of borrowers in foreclosure.

Tax implications are a critical consideration for homeowners in foreclosure, or those considering a short sale. Realtors® should urge clients to consult a qualified tax professional for advice on their particular situation.

Bankruptcy-

Many homeowners will find themselves facing bankruptcy after foreclosure. Perhaps because the lender received a deficiency judgment against the borrower, or because a 2nd loan remains outstanding against the borrower after the foreclosure of a senior loan (even though that lender lost its secured interest in the property). Borrowers should fully understand these risks prior to allowing a loan to foreclose on their property.

Lease or Rental Agreements-

Lease and rental agreements are generally treated as a lien against the property, and may be wiped out by the foreclosure of a senior lien. This typically leaves a renter in the position of becoming a holdover occupant after the foreclosure sale. While holdover occupants can typically not be locked out or forcibly removed, they typically retain no rights to continue on in the property and are subject to eviction. A number of laws have been enacted at the city, state, and federal levels that help renters by attempting to delay the eviction, typically through the requirement of an extended notice period prior to the new owner filing their unlawful detainer (eviction) lawsuit.

Effects on Homeowners & Renters – Orange County Real Estate is a post from: braddhesi.com

The 5-bedroom house at 56 Golden Eagle in Shady Canyon sits on one of the biggest lots in the Irvine community, at nearly an acre. The home was initially listed at $11,679 in 2008, and 3 real estate agents represented it at various times.

Ex-Angels pitcher’s mansion sells for $5.4 million – Irvine – Shady Canyon is a post from: braddhesi.com

It’s even worse for the new home industries. There are many consultants who make a living providing services to real estate developers and home builders. When homebuilding is off, a major component of our economy sits idle, and its workers are not buying homes. Many are squatting in houses they bought back when they had work in 2006.

 I believed the 3rd quarter of 2010 was the bottom of homebuilder activity. I thought the homebuilder stocks were finally ready to rally on a sustained basis. I thought the dawn was finally breaking from homebuilding’s long dark night. I was wrong. I know there is a seasonal component to new home sales numbers, December is always a difficult month to open escrow but there is a huge push to close escrows in process. The result is a beefy December and a thin January for homebuilders every year. That being said. These numbers are horrendous.

New Home Sales Down 80%, Down 18.6% From Last Year, Down 11.1% From Last Month…. Irvine Real Estate is a post from: braddhesi.com

Find Out Exactly What Asset Managers Are Looking For When Selling Bank-Owned Properties. Irvine Real Estate-Irvine Homes-Condos is a post from: braddhesi.com