Is it enough to really encourage the banks to be more cooperative in a short sale environment?  Probably not.  Will it encourage more homeowners to attempt to short sell their house versus a foreclosure – maybe. 

In a Carlsbad short sale, the homeowner normally can not afford to keep making the payments.  Maybe they have contacted the lender and asked for a modification and the lender couldn’t help them.   So, rather than walking away from the property and letting it go to foreclosure, they attempt to sell the property for less than is owed on it.  They normally live in the property (payment free) until the sale is completed.

This is beneficial to the lenders because vacant foreclosures are often ransacked – by angry property owners, or vandals, bringing down the price of the home even further.  It is beneficial to the homeowner because it reports more positively on their credit report. 

For More Information on Carlsbad Short Sales vs. Carlsbad Foreclosures…

Carlsbad, CA

In today’s real estate market, more and more people are looking foreclosure out of both necessity and financial strategy.  If you give back your house, they can’t still hold you accountable for the loan, can they? 

Although California is a non-recourse state that typically says no – more and more banks are finding themselves successful in recouping losses from borrowers who refinanced their homes and used the funds for things other than improving the home itself!

In addition to the more severe credit penalties, a debt on a house you don’t even own anymore is really making foreclosures less desirable.  If you can not afford to make the payment on your home, you really may want to talk to a real estate professional about the possibility of a short sale instead.  In a short sale, you actually sign documents with the lender, releasing yourself from the obligation of the loan.  If you have any questions at all about your possibilities of a foreclosure or short sale, please contact The Mewborn Team.  We would be happy to schedule a no obligation marketing consultation.

The Standard & Poor’s/Case-Shiller home price index released Tuesday inched up 0.2 percent to a seasonally adjusted reading of 145.49. The index was off 5.3 percent from November last year, nearly matching analyst’s estimates that it would fall by 5.1 percent.

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But in addition to some of the existing projects, there is a new development starting in northern Carlsbad called The Foothills.  DR Horton, William Lyon Homes, and Brookfield Homes are partnering up to build 404 new homes at the intersection of El Camino Real and Cannon Road in Carlsbad, CA. 

William Lyon will be building 110 single family homes.  Brookfield will be building 210 single family homes.  And DR Horton will be building 84 detached condominiums.  A grand opening is anticipated to be some time in the spring of 2010.  The homes will range in size from 1,778 to 3,287 square feet, with prices expected to start in the $500,000s. 

The neighborhood will also include a 2.67 acre recreation center that includes a picnic area, tennis courts, a swimming pool, children’s pool, and various parks and trails.   

If you have any questions about this neighborhood or any other Carlsbad real estate, please contact The Mewborn Team.  We specialize in Carlsbad and Coastal North County San Diego real estate.

The Mewborn Team just listed one of our neighbors’ homes this week. The La Costa Oaks home at 3534 Camino Cereza has too many amenities to list, but here are a few great features:

• 4 Bedroom, 4 Bath – 3534 square feet, with a bonus room
• 3 car garage
• Custom tile flooring
• Maple cabinets and upgraded Bosch and Thermador stainless appliances
• Dual air conditioning
• Upscale clubhouse with fitness center and Olympic pool
• Award winning San Dieguito School District
• Professional landscaping with flagstone walkways and stone walls

3534 Camino Cereza is listed at $799,000. Please contact The Mewborn Team to schedule a time to tour the home. You couldn’t pick a better place to build a life or raise a family!

Down 10 to 30 pts. 

Down 25 to 45 pts. 

Down 60 to 80 pts.

Down 90 to 110 pts. 

Down 45 to 65 pts. 

Down 105 to 125 pts. 

Down 85 to 105 pts.

Down 140 to 160 pts. 

Down 130 to 150 pts.

Down 220 to 240 pts. 

Carlsbad, CA - You may know your credit score – but do you have any idea how it is calculated?  In a formula that is so secretive that they could tell you – but then they’d have to kill you, we never know how our actions will affect that score. 

How will your credit score change if you close a credit card?  Should you go through the hassle of a short sale, or just allow your house to go into foreclosure?  What if things are tight, and you go over your credit card limit?

Your credit score is a three digit number normally between 300 and 850.  It is the number used to determine the risk of giving you a loan.Scores over about 715 are considered good scores, and typically will get you the best interest rates.  Scores over 600 and under 715 are moderate scores. 

And although you may get a loan, you may pay a premium interest rate to get it.  Scores under 600 are typically considered to be a high risk borrower.  These borrowers either may not get a loan, or may pay much higher interest rates on their loan.

Although the formula is still a mystery, Fico.com has at least provided a table showing some of the most common penalties to your credit score.

FICO’s information shows that bankruptcy does the most serious damage to a credit score (up to 240 points), followed by foreclosure (up to 160 points) while maxing out a credit card has the least numerical impact (as few as 10 points).

Those with good or excellent credit — so-called prime borrowers — put more points at risk with each mistake. For example, someone with an average credit score of 680 who pays a bill 30 days late will see a drop of 60 to 80 points. But for someone with an excellent credit score — 780 — that same delinquency can cost 90 to 100 points.

If considering whether or not to try to sell your house through a short sale vs. allowing a full foreclosure, please keep in mind that settling a debt (short sale) with a lender can save you 50 to 100 points (and the ability to get another loan in the future) or MORE!  If you have any questions about how this might impact you personally, or how to market your property for a short sale, please contact The Mewborn Team.  We are happy to sit down with you for a no obligation consultation about your best options.

Something else to note – in all price ranges – the high, low, and average – properties sold at over 95% of their listing price.
Although it may only be temporary, it seems that the average Carlsbad prices are trending up!

The foreclosure prevention plan, is meant to reduce eligible borrowers’ monthly payments to no more than 31% of their pre-tax income.  In order to qualify, a homeowner must make three on-time monthly payments before they can receive a permanent modification.

Unfortunately there is the typical he said/she said to each loan.  The mortgage companies are complaining that they need more information that the borrowers aren’t providing.  The borrowers are complaining that the mortgage companies keep losing their documents.  So months go by without permanent modifications.

The Obama administration is trying to make changes to their programs allowing mortgage companies to access tax records through the IRS, rather than waiting for borrowers, and approving and moving clients into permanent modifications without their signatures.  They are hoping that this will help streamline the process and help more US homeowners. 

If you are having problems making your mortgage payment.  Contact your mortgage company.  They may tell you that they can not help you until you have missed a payment.  You may want to ask for a forbearance plan.  Although this will still affect your credit, it will allow you to work with your lender to find a more permanent, acceptable solution.

Your home is often the biggest investment you will ever make.  Make the most informed solutions possible.  If you have any Carlsbad or North County Coastal real estate questions, please contact us.