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…

The second part of the list would be things you don’t necessarily need but want – a garage, an updated kitchen, or an extra room for an office. By setting the expectation that there probably is no such thing as the perfect house, you will recognize that house that gives you everything you need, and most of what you want, all within your budget.

If you have any questions, please contact The Mewborn Team.  We are always happy to help you refine your criteria or steer you in the right direction.

Use professional help

But your home purchase is so much more than getting online and finding your home.   Your agent has access to what is currently for sale, as well as what is currently under contract or recently sold.  Your agent will be able to take this information and schedule time to see the properties, determine pricing, and negotiate on your behalf.

Your home purchase will be one of the biggest investments you will ever make.  Your agent is someone who knows the contract, has experience negotiating, and will walk you through the entire process to ensure that your transaction closes, and you get the house you want!

Know how much you can afford
If the housing crisis proved anything, it’s that just because a lender says you can afford something, it doesn’t necessarily mean you can.  No one can be responsible for your finances but you. To avoid this mistake, create a budget, and try to stick to it.  A good rule of thumb is to devote no more than a third of your monthly household income to housing costs (which include mortgage principal, interest, taxes, and insurance).

In addition to your monthly budget, be sure to keep in mind that there are closing costs, appraisal fees, homeowner’s insurance, utilities, and repairs, and maintenance.  Keep in mind these expenses before you commit to more than you can afford.

Getting Preapproved
After you’ve cleaned up your credit as much as possible, it’s time to contact a lender and determine how much you can afford. You will have to provide your credit report, your W-2’s pay stubs, and bank, and investment statements. By getting preapproved, you will save yourself the time and disappointment by looking at homes you know you can afford, rather than getting your heart set on that “perfect” home that is our of your price range. Also, it will put you in a better position to negotiate when you find that right home.

If you have any questions, please contact us. We are always happy to answer your questions or point you to a professional who may be able to help you in your individual situation.

This week will be a series of five things you can do to be prepared to buy your first home.

Check your credit report and score
You’ve spent hours online looking for the perfect house.  You’re ready to get out and walk through an open house.  But before you set aside time to start touring homes, get your credit report – a full one that includes your score.  You can access your credit report once every 12 months at www.annualcreditreport.com.  But even if you have to pay for a credit report, that $10 could save you thousands of dollars over the course of your mortgage.  In 2010, you need a credit score of over 700 to qualify for the best mortgage rates.  By reviewing your credit report a few months ahead of time, you can correct any mistakes, increase your score, and reduce your mortgage payments!

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.

I was super excited yesterday to get an email from Lululemon Carlsbad saying that they have partnered with Garden of Eden Community Supported Agriculture to become a drop off of organic and locally grown produce.  In order to participate, you must go to the Garden of Eden website and choose your “pledge level.”  This is the amount of produce you will receive each week.  You can order a box big enough for one to a box big enough for a family of 4-5.  Then every Wednesday from 4 – 6 pm, your box is available for pick up from Lululemon Carlsbad Forum.  A box of produce for a family of 4-5 is only$164/mo (or $41/week)!  I EASILY spend that in a grocery store – without buying that much!

The produce is organically grown, ripe, and freshly picked - not picked before ripened from a huge farm 2000+ miles away and shipped to your local grocery store.  Garden of Eden also has an option for grain fed, organic beef and chicken. 

If you have been looking for a healthy, convenient way to increase nutrition, while decreasing your grocery bill

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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Whether you are looking to dine in Coronado at Peohe’s, 1500 Ocean at the Hotel Del, or Coronado Boathouse 1887, George’s at the Cove or the Marine Room in La Jolla, or maybe Jake’s or Pacifica in Del Mar, the Chart House in Solana Beach, or Blue Fire Grill in La Costa, there are options for everyone!

Now, in its fifth year, San Diego Restaurant Week is an absolute hit. This was started in 2004 to bring patrons to restaurants for a week after the summer boom, when kids are back in school, and business is typically down. Popular, exclusive restaurants started offering three course prix fixe menus consisting of an appetizer, a main course, and dessert for either $20, $30, or $40.

If you look at many of the restaurants’ menus, you will find that many of them are offering the entire three course meal for less than just the main course on a typical night. For those of you who know me and Mike, you know, we love to do nice things on a budget. I guess it is that financial advisor in me! So, we look forward to San Diego Restaurant Week each year. We always use it as an opportunity to visit some old favorites – or take a new culinary adventure!

This year, due to the lagging economy, the restaurants added a second San Diego Restaurant Week. According the San Diego Restaurant Week published reports, the January 2009 week was the most successful ever – with over 180 participating restaurants and a 22% increase in diners over the 2008 event!

At the San Diego Restaurant Week’s website, you will find a comprehensive list of participating restaurants that can be sorted by price, type of cuisine, or location.  Have fun and happy dining!

If you have anything you would like to see covered in our blog, please let us know.  We are always here to answer questions and meet your San Diego real estate needs.