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California Mortgage

William Alston

Foreclosures--What's the Deal?

At the height of the United States housing boom in 2005, the average California home values reached almost half a million dollars. More expensive houses in the desirable neighborhoods climbed even higher. Despite high prices, home buyers borrowed large amounts of money in order to purchase these homes.

Many home buyers accepted a difficult California mortgage rate in order to purchase these expensive houses. Many people borrowed large amounts of money which they initially paid very low interest on. They speculated that by the time they had to pay the full interest rates on their loan, the property value would increase and they could alter their interest rate so it was more affordable. These buyers believed that although the payments on their California mortgage loan were initially extremely high, the housing market would continue to improve and somehow they would be able to afford their large and expensive homes.

Unfortunately for many home buyers caught in difficult California mortgage loans, housing prices did not continue to rise as they had anticipated. Instead, during the later half of 2006, housing prices began to slowly drop. In addition, interest rates began to rise. Many borrowers who had counted on low interest rates were unable to afford their mortgage once interest rates began to climb.

By the end of 2006 and the beginning of 2007, housing prices had plummeted and continued to decline. The number of foreclosures continued to rise as more and more people sought relief from their punishing mortgage payments. With housing prices continuing to decline, many home buyers saw foreclosure as way to cut their losses and get out from under the weight of a huge debt.

The future began to look bleak for the housing market, but the effects extended far beyond Real Estate, into the financial industry and out into the global economy. Many people were fearful of the changes which seemingly occurred so rapidly and infiltrated almost every aspect of their lives.

By 2008, the Sacramento Association of Realtors reported that the number of sales that year had doubled since 2007. However, the average price of a home had been reduced by almost one third. So more houses were being sold, but at reduced prices.

Buy and Sell Using Short Sales

Northern California mortgage brokers have reported that many buyers have recently been interested in short sales. This type of sale occurs when the buyer agrees to sell for less than he owes on the property. This type of sale is popular with current home buyers because it allows them to find good deals on desirable properties. However, short sales are extremely competitive. With many buyers putting in offers, the process can often be long and characterized by a lot of waiting. Many describe short sales as a bidding war. With a lot of patience and your letter of approval from a lender, you can have success in the competitive short sale market. As housing sales continue to rebound, you could find a great deal on a desirable property with a short sale.

Every property that was ever foreclosed upon should have been a short sale. If home owners only knew how beneficial a short sale could be, they would not be harassed by banks and foreclosed upon. Getting approved for a short sale depends on the strength of your skilled negotiator. Never pay upfront of a loan modification or a short sale. Let the bank pay all the cost for you. Call (916) 454-5400 for free information on your rights and responsibilities. If you call WABroker, there is no charge for this service. We only get paid if the deal closes, and we get payed by the bank, not the seller. Our negotiators are some of the best. We can do short sales anywhere in the country, and the banks pays all the fees, so you pay nothing out of pocket. Keep the bank out of you life--call WABroker to get relief from the pressure of foreclosure.

California Mortgage Broker

There are two different paths to take in order to obtain your California mortgage broker license. Obtaining a license through the CDC allows you to do business only with lenders licensed under the California Finance Lenders Law. Obtaining a license through the DRE allows a broker to conduct business with banks, credit unions and savings and loans.

California Mortgage Company

There are many criminals who seek to prey on desperate homeowners. Don't get swindled out of your biggest asset. Make sure you know exactly who you are doing business with.