Subprime Lenders Feel the Heat Especially in the Golden State
Subprime loans have been thrown into the media light recently in wake of the growing number of nationwide foreclosure. Stricter underwriting guidelines are being implemented by governmental agencies to protect both subprime lenders and borrowers from feeling the damaging effects of default and foreclosure.
But the damage has already been done for many mortgage origination companies that specialize in subprime lending throughout the country, especially in the Golden State.
“Bell Tolls For Subprime Lenders And Loans,” written January 5, 2007 by Broderick Perkins and published in Realty Times, provides an extensive list of the mortgage companies that are quickly realizing the dangerous risks involved with subprime lending.
“This week Middletown, CT-based subprime lender Mortgage Lenders Network USA (MLN) pulled the plug on its loan originating operations after growing from 7 to 1,800 employees in 10 years.”
Even more established companies are feeling the heat of the millions of dollars of defaulted loans within the past year or so and in fact, are melting.
“Considered the 11th largest subprime mortgage company, feeding some 12,000 brokers, Agoura Hills, CA-based Ownit Mortgage Solutions bought the farm in late 2006. It recently filed bankruptcy to stave off investors including Merrill Lynch & Co., JPMorgan, Chase & Co., Credit Suisse First Boston and other mortgage purchasers who were demanding Ownit own up and buy back more than $165 million in loans on which borrowers had missed payments.”
As subprime loan defaults increase, no mortgage company is safe. Perhaps, the most trouble fact about the damaging results of foreclosures and defaults is that this may only be the beginning.
Subprime loans grew in popularity during the great housing boom from 2000 to 2005 as many people who were not quite in good enough financial health to purchase property, did so via a subprime loan in fear that the boom would make property too unaffordable in the future.
The stipulations of these subprime loans were that they offered low monthly payments for either the first three or five years and would then reset to higher payments after the introductory period ended. This is when people began to default on payments. So, even though subprime loans have subsided a little more recently due to more knowledge and stricter underwriting, there will still be many more defaults over the next three years.
“Early last year, the nation’s largest subprime lender, Ameriquest Mortgage, agreed to a record $325 million predatory lending settlement and then proceeded to cut 3,800 jobs and shutter branches.”
Regardless of warnings and strict underwriting guidelines though, subprime loans will always create foreclose risks as long as they are in existence. The solution may be to wipe out the subprime option. Many California subprime companies are probably wishing they stuck to the more traditional market.
“Among more than 400 metropolitan areas tracked in the center’s study, the Top 14 metros with the greatest growth in subprime mortgage failures in 2006 were all in the Not-So-Golden State and included in the top five spots, No. 1, Santa Ana-Anaheim-Irvine; No. 2, Santa Barbara-Santa Maria; No. 3, San Diego-Carlsbad-San Marcos; No. 4, Santa Rosa-Petaluma; and No. 5, Napa.”
For more resources about real estate appraisers or even about California real estate and especially about San Diego real estate, please review these links.
Groshan Fabiola
http://www.articlesbase.com/business-articles/subprime-lenders-feel-the-heat-especially-in-the-golden-state-112800.html
Buying Real Estate Property : How to Buy a Foreclosed Property
Buying a foreclosed property is a very good deal. Discover how to buy foreclosed property with expert tips from a licensed real estate agent in this free video.
Expert: Richard Blake
Bio: Richard Blake is a licensed real estate agent that has closed more than 20 times the number of transactions per year than that of the average realtor for the last three years.
Filmmaker: Christopher Rokosz
Duration : 0:1:40
246 Portland Dr. Santa Maria, Ca.
Property for sale. 3 Bedroom 3 bath. Call now for more information.
Duration : 0:1:15
Real Estate Leads 101: it Takes Time!
Online lead generation companies are a huge source of real estate leads for Realtors and a great resource to help grow an agent’s business. However, many lead generation companies are constantly slammed by agents who have used the service and had little, if any success with the real estate leads provided. In my experience, this dissatisfaction often comes because the agent has unrealistic expectations of the service and little to no knowledge on how to develop a good follow up campaign with their real estate leads.
The first thing you need to realize as an agent is that lead generation services aren’t magic listing trees. Typically you shouldn’t expect to get listing after listing from a service. Most services work on the following basis: they provide online marketing in the agent’s specific area, the natural result of which is homeowners in need of information filling out lead contact forms. This contact form is sent to the agent in the area, and that is their “lead.”
So what does this mean exactly? W ell, it means the real estate leads provided will be people with different types of real estate needs and in different stages of the process. If an agent signs up for a service for a 3 month contract and expect a listing within the first month, they are likely to be disappointed. Immediate listings with real estate leads DO happen, but they aren’t the norm.
Realty Times analyzed more than one million real estate leads captured and cultivated online and then compared them to public records of home sales from across the country. They found that only about 7.3% of consumers sold their home within 3 months of filling out a lead form, but the percentage grew to 22% after 12 months and to over 40% after 28 months. This means that purchasing real estate leads online is a LONG TERM investment, not an immediate source of money. Real estate leads generated online MUST be aggressively followed up with to convert them to clients!
Therefore, as a real estate agent, you must look at lead generation services in the same light as other marketing endeavors. When you implement direct mailing campaigns and send out information several times a year to 5,000 homes, do you expect to get 5,000 listings within the year? No. Direct mailings are more likely to result in accumulation of real estate leads over the next year or two which you then must nurture into clients looking to buy or sell.
There are typically four types of real estate leads received by online lead generation companies: buyers, sellers, refinancers and fakers. Buyers may be in different stages of the process, as may sellers, so you may have to follow up for 2 years before actually getting their business, or you may have a listing within 3 months. It depends on where the consumer themselves are at in the process. Obviously buyers have a great potential – you may be able to sell one of your listings to them and if they need someone to list their current home, you’ve got a double whammy of a lead. Same goes with a seller looking to list – maybe they’ll be interested in purchasing one of the homes you already have listed, and if not, perhaps they’ll still consider you for a buyer’s agent to represent them when they purchase a new home. Again, a double whammy of a lead.
Just because the seller isn’t going to sell for 2.5 years doesn’t mean you should drop them – on the contrary, you now have 2.5 years to get a leg up on the competition by working closely and sending the lead any information to make their real estate process easier. It all comes down to an agent’s sales ability – lead generation services can get your foot in the door, but it’s up to you to sell yourself to your real estate leads.
Often real estate agents complain the loudest about getting real estate leads of people looking to refinance or get a home equity loan. “These aren’t real estate leads, I’m not a broker, what am I supposed to do with this lead, it’s worthless,” they say. That is absolutely FALSE and the wrong way to look at these leads. First off, any real estate agent worth their salt should have a close working relationship with one or more mortgage brokers to refer these type of leads on to. In the spirit of reciprocation, the mortgage broker should be referring buyers and sellers back to you!
Even before you refer the refi lead to a broker, you need to do some work on your own. Talk to the lead, get to know them and their situation, educate them in anyway possible on refinancing as opposed to buying or selling. Sometimes these leads can be converted to listings, depending on what their situation is and what path makes more sense for them. Even if they do wind up going to your mortgage broker, that’s still one more homeowner out there that knows your name and how willing to help you were – they may wind up needing you a few years from now or referring their family and friends to you. You never really know what could come of your real estate leads unless you try.
Last but not least, we have the fake real estate leads – people who fill out information forms but give not ONE good piece of contact info. A lead that has a fake name, number, email and property address is admittedly, a bad lead. There’s no way to contact the person and find out who they are. However as long as even ONE piece of information is correct (name, phone number, property address) then a little detective work with public records can help you get to the bottom of the lead. Agents who consider a lead bad just because it has a fake name will wind up missing out on MANY commission checks.
The best way to have success with real estate leads generated online is to have a strong follow up campaign. Give the lead service a chance to work for you, but be realistic – not all leads turn to listings and not all listings happen overnight. Patience and persistent and consistent follow up is the true path to success with real estate leads and online generation companies. It just takes time.
Ashley Lichty
http://www.articlesbase.com/marketing-articles/real-estate-leads-101-it-takes-time-137328.html
Analyzing the Data for Buying and Selling a Home
Bill Raveis shares important information for buyers and sellers on how to evaluate facts and figures to assist with the home buying and selling process. He summarizes key data points for both buyers and sellers.
Duration : 0:5:2
Homes for Sale Santa Maria CA Erik Vasquez
Erik Vasquez
Phone: 805-692-2006
Email: erik.vasquez@cph-inc.com
Duration : 0:0:45
Your Real Estate Dreams with Santa Maria Real Estate Agents
Are you planning to buy or sell real estate in Santa Maria all by yourself? Good, but are you acquainted with all the nuances of transacting a commercial real estate? Let’s face it- selling or buying a commercial real estate is one of the most difficult jobs and most of us are not smart enough to handle all the details in the most economic manner. Selling your own land might save you the commission payable to real estate agents however; you will spend double the amount through other channels in the transaction process. It is always advisable to get an experienced Santa Maria real estate agent to help you with your transaction or to deal with established real estate buyers while selling your property. Choosing an expert Santa Maria real estate agent can make a big difference as they are most informed about all real estate investment opportunity and can ensure that you get the maximum return out of your real estate transaction. At the same time, these Santa Maria real estate agents would manage all the legal issues reducing your burden.
When it comes to having your house sell or not, it all comes down to marketing. If you don’t have any exposure, it gets really difficult to place your home in front of people who are looking to buy. These days one of the best ways to get some attention for your home is by using the Web, and a Santa Maria real estate agent who is already established with a web presence could be a real boon to get people to look at your house. You need to face reality that the Internet is the place to have a presence these days. Most of the people who are looking to buy a home will have visited the Internet long before they start talking to a Realtor and will have a pretty good idea of the homes in Santa Maria that they want to check out. For this reason, it is imperative for any Realtor or real estate agent to be a leader with their web presence.
These professional Santa Maria real estate agents also provide access to other information, which can make big difference in your decision about choosing the perfect real estate investment opportunity. They will provide you with information like market lease trends, popularity study and a comparative report on the changing trends in different real estate markets in different states. Addition to this, the Santa Maria Real Estate Agents also look after the economic trend that affects the real estate market in Santa Maria. This information can be used by the prospective client to study the current real estate market in Santa Maria and choose the ideal property that fits his purpose and pocket. They are capable of handling thousands of data and handling very large transactions that involves millions of dollars. In order to get the competitive edge, a client should get the latest information from the professional Santa Maria real estate agents.
A real estate transaction involves legal issues and complexities, which are very difficult to be single handedly taken care of by any layman. These professional Santa Maria real estate agents are trained to solve the complicated legal issues and thus save your valuable. Although the agents will take their share from the sale proceeds as commission, but it’s worth giving that amount rather than making an improper investment.
It is advisable not to venture into a real estate transaction in Santa Maria without the guidance and advice of an experienced Santa Maria real estate agent. They have the right training and equipment to give you proper advice and transaction services so that your money gets into the right channel and your real estate venture goes smoothly.
Rent To Own Buying Negotiating Techniques for Real Estate Investing!
http://www.Rent2OwnExposed.com Rent To Own, Lease Options Secrets of Buying & Selling houses in 30 Days or less. Get a free Real Estate Investing eBook!
Learn Negotiating Techniques in this video.
Duration : 0:8:48
Central Coast California Real Estate
Area Description
Truth to be said, Central Coast California Real Estate market is only a small fraction of the California real estate industry, but an important one. First of all, with roughly 3% of Golden State’s population and no major metropolitan area, the Central Coast is one of calmer and more serene areas in California. Then, the median real estate prices in the area are around 20% higher than the California’s average, but with the exception of Santa Barbara, it is not the area of $1,000,000+ houses. And last, but not least, located between the San Francisco Bay and Los Angeles areas, the Central Coast counties offer fabulous views and over 250-mile long coastline including the famous Santa Barbara beach. All of that, taken together, makes the Central Coast counties one of the areas of California most likely to be a destination of off-state real estate buyers.
Trends’ overview
Central coast California Real Estate market was hit by the general real estate industry slowdown just as bad as any other part of California. In 2005 and 2006, relatively high prices of properties and dwindling number of buyers caused a sharp drop in the number of sales. For now, central coast counties economy suffers from the same problems which haunt the rest of the California real estate market. Buyers feel that the property prices should go down, sellers still hope to sell their houses for premium prices. Both buyers and sellers are dug deep into their positions, waiting for the other side to make the first move.
However, there are some signs which may indicate that the recent problems are over, at least in the Central Coast California real estate market. It is too early to talk about any strong or long-term trends in the Central Coast California real estate market, but…
*while the median price of houses in California rose between April, 2006 and April, 2007 by 3.4% to $484,000, the median prices of properties in the three of four Central Coast counties (Montery County, San Benito County, and San Luis Obispo County), actually fell down by around 4%. Even in Santa Barbara County, where the median prices of properties rose, several towns noted slight real estate prices reduction (8.01% price reduction in Santa Maria is the most obvious example). While the slowdown in the California real estate industry is a fact, the Central Coast counties may be on the verge of overcoming its problems.
*while the number of sales is still falling down sharply statewide, some areas of the Central Coast report increase in existing home sales; *new home construction rate is rising. For example, in Santa Maria (the northern part of the Santa Barbara County), there are 20% more residential building permits issued in the first three months of 2007 than during the same period of 2006.
All of that may indicate that the Central Coast California Real Estate market may be among the first to recover from the real estate market problems. And, as the condition of the real estate market influences all other areas of local economy, the recovery is also likely to positively affect other local industries as well. This in turn will have a serious positive effect on all Central Coast communities, making the area even better to settle in.
Rob West is an expert for Real Estate in the United States. He has written several articles about the real estate market. If you want to know more about Central Coast California Real Estate just visit his webpage.
Article Source: http://EzineArticles.com/?expert=Rob_West
Holiday Inn Hotel & Suites Santa Maria Video Tour
Going on vacation or taking a business trip? Whether business or pleasure, learn more about the property with a video before you book. Holiday Inn Hotel & Suites Santa Maria, located at 2100 North Broadway, Santa Maria, California, 93454, USA. Contact the property directly at 1-805-928-6000 or visit http://www.sixcontinentshotels.com/h/d/hi/hd/smxca.
Duration : 0:2:24