Chun Liu blog

Hey California, learn about short sale!

2007-11-28T17:16:00.000-08:00

Hey California, learn about short sale!

The following is an email that I've sent back to my client explaining a little bit about short sale:

No, the agent doesn't represent the bank, the listing agent represents the owner of the property but will be asking the bank to reduce their payout for the lien held on the property in order to facilitate the sale. In another word, the property is worth less than what is owed on the property and is usually in distress or special circumstance. Banks can, if they wish, reduce the amount paid back so that instead of foreclosing on such property they get paid short of what they were owed, thus the term short sale. In the particular instance you are referring to, the property was bought for $337,000 in July of last year. They bought with 100% financing, of which $269,600 is the 1st trust deed and $67,400 is the 2nd trust deed. This means that there are 2 different banks that must approve of such sale, including the 2nd, which will get zero in return. I doubt that the banks will take anything close to the $175,000 list price they have put down. They most likely did it just to get a bunch of offers in so that they can submit it to the bank to get the process started. The bank usually takes somewhere between 1 to 2 months to respond to such offers and tactic. Most of the time it is within this time period. Some times it is longer, other times shorter, but usually not shorter. Once the bank is willing to negotiate, then it moves along usually quickly as they will tell the agent what they expect and will do, which is almost always sold in as-is condition with no warranties written or implied along with no closing costs and no termite repairs and no home warranties either. Sometimes it is different, which are kind of odd but does happen. This is pretty much a scenario that you get what you see and what you paid for.Short sales can be a good buy, but you must wait for it and hope that the bank is willing to negotiate or be willing to lose lots of money... that on top of their schedule for foreclosing on such properties prior to it being a completed sale, which makes this a complicated situation most of the time. When they do approve, they'll want you to close it as fast as possible, usually within 30 days or less, so that their calculations are within the numbers that they agreed to and they don't change their minds.Whew, that was a long one. Let me know if you want to know more. It might be easier to talk from here out for the details.Thanks and talk more soon! Best regards,

Chun Liu, Real Estate Consultant for life!
Please refer me to anyone you know regarding real estate!
Team WOWWHEE.com at Keller Williams Coastal Properties

HAPPY THANKSGIVING...

2007-11-21T12:27:00.001-08:00

Hello there!Hope this finds you well and having lots of fun with food this Thanksgiving. I know I'll be sitting around gorging on wonderful food and having family around. I absolutely look forward to that and hope you get to as well!Thanks for being a part of Team WOWWHEE.com. I really appreciate you. Please let me know what I can do for you or your friends and family for real estate! Meanwhile, here are some interesting news about real estate including what the Governor of California has done for loans. Take care and be happy!
Best regards,
Chun Liu, Real Estate Consultant for life!Team WOWWHEE.com at Keller Williams Coastal Properties(562)961-1409 realtoromy@aol.com www.WOWWHEE.com**********************Down night for real estate rates --------------------------------------------------------------------------------30-year fixed rate at 5.9%; 10-year Treasury yield at 4.07% Tuesday, November 20, 2007
Inman News
Long-term mortgage interest rates moved lower Monday, and the benchmark 10-year Treasury bond yield dropped to 4.07 percent.
The 30-year fixed-rate average dipped to 5.9 percent, and the 15-year fixed rate slipped to 5.46 percent. The 1-year adjustable, however, rose to 5.48 percent.
The 30-year Treasury bond yield was down at 4.48 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average tumbled 218.35 points, or 1.66 percent, finishing at 12,958.44. The Nasdaq lost 43.86 points, or 1.66 percent, closing at 2,593.38.
Stock figures are current as of 7:30 p.m. Eastern Standard Time.**********************Home prices rise in 33 states since Sept. 2006 --------------------------------------------------------------------------------FALP study: 19 of 31 top metro areas saw price declines Monday, November 19, 2007
Inman News
Home prices fell in 17 states during the last year, but most states "continue to have stable home values," and a half dozen others even showed moderate price growth, according to a new analysis of repeat sales by First American LoanPerformance.
Home prices in five states -- Wyoming, Utah, North Carolina, Alabama and Maine -- grew at between 5 percent and 10 percent between September 2006 and September 2007, LoanPerformance reported, and at more than 10 percent in Hawaii.
Although most states --33 in total -- saw at least modest price appreciation in past year, the trend has already reversed in some states. Prices have been falling for two months in New York, for example. But the state still makes LoanPerformance's list of 27 states where prices are up between 5 percent and 10 percent, because all of the gains made in the last year haven't been erased.
The findings were included in an announcement of the release of First American's September 2007 LoanPerformance Home Price Index (HPI).
A recent First American CoreLogic report estimated that home prices were falling or not keeping pace with inflation in 247 of 381 metropolitan areas tracked. Prices were falling in 88 markets, and appreciating at less than 3 percent in 159 others, according to First American CoreLogic's fourth-quarter Risk Monitor report. With inflation averaging around 3 percent, homeowners whose properties appreciate at a slower rate experience a decline in value in real terms.
PMI Mortgage Insurance Co., in a recent report gauging the risk of price declines in major markets, estimated that housing affordability -- which improves when income growth outpaces home-price appreciation -- showed gains in 297 of 381 metropolitan statistical areas (MSAs) during the second quarter, or 78 percent of those studied.
First American LoanPerformance's analysis of the top 31 "core based statistical areas" showed prices fell in 19 metro areas, or 61 percent of those studied.
Communities in California and Florida held six of the top 10 spots on the list of areas experiencing the greatest price declines. In Florida, Cape Coral-Fort Myers (-11.49 percent), Miami-Ft. Lauderdale (-8.37 percent), Orlando-Kissimmee (-7.66 percent) and Tampa-St. Petersburg (-7.65 percent) topped the list. In California, Riverside-San Bernardino-Ontario (-13.59 percent) and L.A.-Long Beach-Santa Ana (-8.14 percent) made the top 10.
Many of the top 30 metro areas LoanPerformance says experienced price declines during the past year also show a higher-than-average number of foreclosure filings, according to the most recent numbers from data aggregator RealtyTrac Inc.
Riverside-San Bernardino, for example, had the third-highest rate of foreclosure filings per household in the nation -- one filing per 43 homes -- according to RealtyTrac. The rate of foreclosure filings per household exceeded the national average of one filing per 196 homes in Phoenix, Miami, L.A., Orlando, Tampa, Cleveland, Washington, D.C., Detroit, Miami and Atlanta.
Metro areas where prices fell in the last year but the rate of third-quarter foreclosure filings was below the national average included Boston, St. Louis, Minneapolis and Philadelphia.
Foreclosure filings include default notices, notices of auction sales and bank repossessions, and the number of filings may exceed the number of homes in foreclosure because some properties are subjected to more than one filing.
One-year price changes, top 31 metro areas:
Metro area Percent changeRiverside-San Bernardino-Ontario, CA -13.59Cape Coral-Fort Myers, FL -11.49Las Vegas-Paradise, NV -9.80Phoenix-Mesa-Scottsdale, AZ -8.49Miami-Fort Lauderdale-Miami Beach, FL -8.37Los Angeles-Long Beach-Santa Ana, CA -8.14Orlando-Kissimmee, FL -7.66Tampa-St. Petersburg-Clearwater, FL -7.65Cleveland-Elyria-Mentor, OH -7.39Washington-Arlington-Alexandria, DC-VA-MD-WV -6.65Boston-Quincy, MA -4.97New York-Northern New Jersey-Long Island, NY-NJ-PA -3.78Detroit-Warren-Livonia, MI -3.46St. Louis, MO-IL -2.10Miami-Miami Beach-Kendall, FL -1.59Minneapolis-St. Paul-Bloomington, MN-WI -1.55New York-White Plains-Wayne, NY-NJ -0.87Atlanta-Sandy Springs-Marietta, GA -0.40Philadelphia, PA -0.05Chicago-Naperville-Joliet, IL-IN-WI 0.06San Francisco-Oakland-Fremont, CA 0.68Dallas-Fort Worth-Arlington, TX 1.27Houston-Sugar Land-Baytown, TX 2.46Portland-Vancouver-Beaverton, OR-WA 2.83Charlotte-Gastonia-Concord, NC-SC 3.70Seattle-Tacoma-Bellevue, WA 4.25Austin-Round Rock, TX 4.83San Antonio, TX 4.85Raleigh-Cary, NC 5.55Salt Lake City, UT 6.06Honolulu, HI 14.79 Source: First American LoanPerformance****************Economist: Odds rise for economic recession --------------------------------------------------------------------------------Oil prices may determine whether 'hard landing' lies ahead Monday, November 19, 2007
By Glenn Roberts Jr.Inman News
SAN FRANCISCO -- There is a 45 percent chance that the U.S. economy will spiral toward recession in 2008, as real estate foreclosures and gasoline costs continue to escalate, economics professor Ken Rosen said in a presentation today.
Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at University of California, Berkeley, said that if gasoline prices exceed $4 a gallon and oil prices top $100 a barrel, "it's a pretty sure thing that a hard landing rather than a soft landing (will) happen."
He advised attendees of an annual Real Estate and Economic Symposium, organized by the center, to plan for the worst.
Home prices may already have fallen about 5 percent to 7 percent nationally, and those price declines may represent only about half of the declines still ahead. New-home prices may fall about 25 percent in some markets.
"It all goes back to the fact that we had a bubble in housing created by bad lending practices," he said.
While the volume of foreclosures is relatively small thus far, Rosen said that the foreclosure rate may not peak until 2009.
Barring a major intervention to restructure mortgages for those facing foreclosure, Rosen expects the foreclosure rate for subprime mortgages to rise from a current level of about 8 percent to as high as 20 percent to 25 percent, with lower-risk alt-A foreclosures peaking at about 15 percent and the foreclosure rate for prime mortgages reaching 3.5 percent to 4 percent.
The subprime market will be a bad investment for some time, Rosen said, as it had grown to an unsustainable level of about 22 percent of the overall mortgage market in 2005 and 2006.
"Do not go into that (subprime) business," Rosen said. "The market share in subprime should be about 5 percent. Do not catch that falling knife."
The credit crunch "is substantial in residential real estate and it's spreading to commercial real estate," Rosen said.
Credit losses related to the mortgage mess and rising foreclosures could top $400 billion, he said, with about $50 billion to $60 billion in losses already announced. "There's a lot more to come."
Rosen takes issue with those market analysts who say they didn't see any of this coming.
"For these people to say it's unanticipated ... it happens every decade. There's no surprise to this at all," Rosen said.
The securitized system for mortgage financing that the nation had relied upon for the past four or five years, if it doesn't reopen, could prolong the credit crunch "for a lot longer than we think," Rosen said.
The stock market has already been taking hits for the credit problems and anticipated rise in foreclosures, he said.
U.S. job creation and the resilience of the global economy are still sustaining the U.S. economy, though Rosen said that is subject to change.
The dollar has been dropping in value against other major currencies, leading some nations to diversify investments away from the U.S. dollar, and the United States has a huge trade imbalance, he noted.
Because of the rising value of the euro against the U.S. dollar, the nation is effectively "on sale" for Europe and some Asian markets, Rosen said.
The rising stock market in China has created a speculative bubble for that nation's economy, he said. "I really do think China is in a bubble stage. When it bursts, I don't know."
A market decline in China could spell more troubles for the U.S. and the global economy, he said.
Income distribution has become skewed in the United States, Rosen said, and he expects that individual and capital taxes will be rising -- no matter the rhetoric that candidates may offer in this election year. Also, inflation will likely rise, he said.
"Our industrial base has been decimated," Rosen said, noting that Michigan, once strong in manufacturing, is in a recession. "I worry that a lot of central cities in the Midwest are dying."
Southern California, too, is in a recession or at the edge of recession. The fall of the subprime market hit hard in Orange County, Calif., a base of operations for some subprime lenders, he said.
Miami and Las Vegas are among the markets reeling from speculative real estate investments and a subsequent rise in foreclosures.
While New York City has been strong economically, Rosen said he expects a lot of layoffs and cutbacks by financial firms hit hard by the credit crunch.
Rising oil prices highlight a need for the U.S. to reduce dependence on foreign oil, Rosen said. "We have to get away from our dependence on oil."
"We have become addicted to cheap oil. We've become addicted to cheap Chinese goods," he said, though the economy will dictate change. "We're going to have to have a lower relative standard of living compared to the rest of the world, a different quality of life for the next generation."*********************Four servicers agree to streamline California workouts --------------------------------------------------------------------------------Governor says plan based on FDIC chief's proposal Wednesday, November 21, 2007
Inman News
Four companies that service 25 percent of outstanding subprime loans in California have agreed to streamline the loan modification process to allow some borrowers with adjustable-rate mortgages to avoid interest rate resets.
California Gov. Arnold Schwarzenegger said a voluntary agreement with Countrywide Financial Corp., GMAC Mortgage, Litton Loan Servicing and HomeEq Servicing is modeled after a proposal put forward by Federal Deposit Insurance Corporation chief Sheila Bair.
Bair, citing a report by Moody's Investor Services that servicers were engaging in workouts on less than 1 percent of troubled subprime loans, last month urged them to embark on a program of wholesale conversions of adjustable-rate mortgages into fixed-rate loans when borrowers are in danger of default.
In an interview published in today's Wall Street Journal, U.S. Treasury Secretary Henry Paulson said he expects a “significantly bigger” number of mortgage defaults in 2008, and said he is encouraging servicers to develop criteria that would enable large numbers of borrowers to qualify for better terms.
"We're never going to be able to process the number of workouts and modifications that are going to be necessary doing it just sort of one-off," Paulson told the Journal.
Schwarzenegger, who said 500,000 Californians with subprime loans face interest rate resets in the next two years, said loan modifications "can save tens of thousands of people from being added to the foreclosure lists" but “does not involve a government subsidy or bailout."
California had the second-highest rate of foreclosure activity in the nation during the third quarter, second only to Nevada, according to data aggregator RealtyTrac Inc. Half of the 10 metropolitan areas with the highest rate of foreclosure activity during the third quarter were located in California, RealtyTrac said in another report.****************

Super Bowl is Over! Congratulations Colts and Great Job Bears!

2007-02-05T16:51:00.000-08:00

Hey,
Just wanted to say that despite the bad weather condition and making the pigskin slippery, both teams played with heart and the referees didn't blow call after call like they did last year! Great job to the Bears and a big congratulations to the Colts. Both teams deserve to be there with a winning record that they had both last year and this year.

What an interesting halo-effect game that I saw on a big screen! Was glad that I wasn't one of the people that paid thousands of dollars to sit there soaking wet and wondering what is happening on the field. I'm sure it was a wonderful experience nonetheless.

Once again, great job go both teams. I'll miss you NFL season. Can't wait until next season and hope that my team does better than this year!

California Real Estate in Long Beach or Lakewood or Signal Hill or Bellflower and vicinity!

HAPPY NEW YEAR TO YOU!

2006-12-29T15:58:00.000-08:00

HAPPY NEW YEAR TO YOU!

California real estate affordability drops

2006-11-27T16:46:00.000-08:00

California real estate affordability drops

(Chun Liu real estate blog)

24% of first-time buyers can afford median-priced home

Inman News

Housing affordability in California dropped 4 percentage points in the third quarter compared to the same quarter last year, the California Association of Realtors trade group reported today.

The percentage of first-time buyers in California who can afford a median-priced home fell to 24 percent in the third quarter, according to the association's First-time Buyer Housing Affordability Index.

First-time buyers needed a minimum household income of $98,890 to buy a home priced at $478,710 in the third quarter, based on an adjustable interest rate of 6.58 percent and assuming a 10 percent down payment, according to the report.

For the full article on Inman News, please click here.

Thanks for stopping by!
Chun Liu

Please be sure to visit www.WOWWHEE.com

Chun Liu real estate
Long Beach real estate
Lakewood real estate
Signal Hill real estate

C.A.R. REPORTS HOME SALES DECREASED 31.7 PERCENT IN SEPTEMBER

2006-11-22T14:50:00.000-08:00

C.A.R. REPORTS HOME SALES DECREASED 31.7 PERCENT IN SEPTEMBER
(BUT PRICES INCREASED... and doesn't mean going up or down... cl)

CHUN LIU REAL ESTATE BLOG

The median price of an existing single-family home in California increased 1.8 percent in September and sales decreased 31.7 percent compared with the same period a year ago, C.A.R. reported today. "We expected a fairly steep decline in sales last month compared with a year ago, when sales were near their all-time record," said C.A.R. President Vince Malta. "Unsold inventory is holding steady, and is close to the long-term historic average typical of a more 'normal' market."According to the report, the median price of an existing, single-family detached home in California during September 2006 was $553,050, a 1.8 percent increase over the revised $543,510 median for September 2005. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 444,780 at a seasonally adjusted annualized rate, down 31.7 percent compared with the sales pace recorded one year earlier and up 0.6 percent from home resale activity in August."Overall, year-to-date sales were down 24 percent, in line with our 2006 projection. Regional trends in sales and prices were consistent with recent months," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Areas that experienced a lot of homebuilding in recent years or second home activity have experienced larger declines in sales and weaker prices than the state as a whole. These include Northern California, the Northern Wine Country, the Central Valley, San Diego County, and the Lower Desert in Southern California."

For More info and details.

Thanks for stopping by. Hope that you found things interesting. This is Chun saying have a great Thanksgiving! Team WOWWHEE.com

CHUN LIU REAL ESTATE BLOG

source: CAR newsletter

HOUSING STARTS DECLINE 17.9 PERCENT NATIONWIDE IN SEPTEMBER

2006-11-22T14:25:00.000-08:00

HOUSING STARTS DECLINE 17.9 PERCENT NATIONWIDE IN SEPTEMBER

This has been posted to my other sites as well. Source is CAR newsletter.... The seasonally adjusted annual rate for privately owned housing starts dropped for the sixth consecutive month in September, falling to a rate of 1.77 million units, according to a recent report from the U.S. Dept. of Commerce. The September construction pace was up 5.9 percent from August and down 17.9 percent from a year ago. Single-family housing starts decreased 20.3 percent from September 2005, to a rate of 1.43 million units, while starts for buildings with five or more units increased 1.3 percent to a rate of 314,000. The number of building permits issued, which can be an indicator of future building activity, declined 27.7 percent from one year earlier to a seasonally adjusted annual rate of 1.62 million permits.The construction pace for housing units decreased across the nation in September. The rate for privately owned housing starts declined 31.3 percent in both the Northeast and West regions, 28.4 percent in the Midwest, and 3.8 percent in the South. For more on this article, please go here. Thanks for stopping by and visiting Chun! Have a great Thanksgiving! Team WOWWHEE.com

The Wonders of MySpace profile!

2006-11-13T14:06:00.000-08:00

Hey there,
Ya, I've come to the 21st century and gave in and joined MySpace to try and promote the website www.WOWWHEE.com further and to meet and network with people around the country. What an interesting journey so far. There are millions of people and things on there and all sorts of videos and songs as well. Am eager to learn. Been on it a week so far and still hope to learn more.
Stop by and take a look and give me some comments!
Thanks and talk more soon!

http://www.myspace.com/realtorchunrealestate

Chun Liu, Realtor
www.WOWWHEE.com
Long Beach Real Estate
Lakewood Real Estate
Signal Hill Real Estate

Time change and Halloween and market condition sidebar...

2006-10-31T14:36:00.000-08:00

Hello there,

Hope this finds you well.

By now you should have already turned back an hour on the clock and heading into the wonderful candy day we call Halloween.

I know my kids are certainly excited and can't wait.

Something else is scary right now.

Yes, this market is topsy turvy and the experts keep contradicting each other. May thing is that there hasn't been a bubble bursting... even the media, who is screaming the most about the market, states that there isn't a bubble burst. To keep everyone interested, they say that it "may"

... hint hint...

so stay tuned for more news. lol

Majority of the experts are stating that if media just calms down and report that the economy is doing relatively good and that interest rate is doing decent, then people will think differently. However, that doesn't sell the newspapers and magazines and the pay per click on the Internet. So, we'll keep going along and somebody will figure it out.

Who will it be? Hmmm...

Talk more soon!

Best,

Chun Liu
Team WOWWHEE.com

Chun Liu needing your help...

2006-09-13T14:35:00.000-07:00

Hello there,
Chun Liu here with Team WOWWHEE.com. Realizing what is happening right now, need to make sure that friends and family as well as past clients and people that I've met know that I am in the real estate business. If there are any suggestions on how to make this easier or better, please let me know. Meanwhile, thanks for stopping by and let me know about real estate in Long Beach vicinity of California!

Oh, wrote something about the condition of pricing as predicted by Forbes Magazine on Team WOWWHEE.com blog. Please go and read!

Smile and stay happy!

Monday report from Chun Liu...

2006-07-17T19:42:00.000-07:00

Hello there,
It is Monday and quite hectic. A couple of meeting and really wishing that I can help more. Both has to do with real estate. That, I guess, is how things go... you take the ups with the downs and you keep going.
Lets go real estate! Where did everybody go? lol

Best,

Chun Liu, Team WOWWHEE.com

What is happening?

2006-07-14T18:24:00.000-07:00

Hello there,
Chun Liu here with Team WOWWHEE.com. Whew, just finished another blog regarding real estate. Sure is quite a bit of work doing so. I'm hoping that it helps my clients as well as others that are seeking answers to this topsy turvy thing we call real estate.

Thanks for stopping by! Leave me a comment or two if you have something. Something nice would be wonderful, but I'll take criticisms as well. Constructive ones, of course. Talk more soon!

Best,

Chun Liu, Real Estate Consultant for life!
(562)961-1409

Just a Quick Hello to you...

2006-07-07T16:40:00.000-07:00

Hello there,
Just wanted to start off a blog of me. I am Chun Liu and live in Long Beach. Will continue this really soon!
http://www.ChunLiu.com
http://www.WOWWHEE.com