Los Angeles Foreclosures and Why home buyers should begin the lender prequalifcation process early
Prior to evaluating last week’s foreclosures and Notices of Default; I would like to remind potential home buyers the reason that your Realtor requests that you become prequalified PRIOR to searching for your dream home. The sub prime lending fiasco proves the fact that an abundance of home buyers were in a hurry and did not take the time to understand the type of loan they were obtaining. 
Potential home buyers, stop! Talk to a lender, now, today, before you find your dream home. Discuss loan options, monthly payments, down payment requirements, etc. Have a leisurely discussion. AND if you have been home shopping and haven’t talked to your lender in several months, phone them today. Find out what, if anything has changed with your prequalification. Underwriting criteria is constantly changing and down payment requirements are increasing (Other than FHA, which is a different story). FICO requirements are becoming higher, interest rates can change daily and blah, blah, blah, call your lender now!
If you are not buying a home today, but hope to in the near future, talk to a lender, obtain a copy of your credit report and learn what you can do to increase your FICO scores, in order to obtain the lowest interest rate. There are home buying opportunities out there, if you want to purchase a home BEFORE interest rates go up – prepare yourself.
Many of the following households, are in financial trouble (some financial ruin) because they didn’t pay attention to loan options and didn’t ask questions. Talk to more than one loan officer, compare rates and fees – you are applying for a 30 year loan, a slight interest rate difference makes a huge difference on an annual basis. Need a lender referral? Find one at HarbsList.com
Last Week’s Notice of Defaults for Montrose, La Crescenta, La Canada and Glendale: 1 in Montrose, 2 in La Crescenta, 1 in La Canada, 10 in Glendale
Foreclosures: (none in Montrose)
La Crescenta:
Fairesta condo: I have always liked these units as they offer a private garage, an excellent school district – and a cul-de-sac location.
Purchased 8/1/2005 $380,000
Listed 10/2005 $419,000; 59 days on market didn’t sell
Relisted again 10/2005 and at a higher price $449,000; 91 days on market didn't sell
AND neither relist indicates ANY improvements
Owed $420,000 (1st and 2nd) plus arrears
No one seemed happy at this La Crescenta (Upper Briggs Terrace) home:
Sold 2/2002 $435,000
Sold 7/2005 $865,000
Sold 6/2007 $855,000
Owed $767,000 (1st and 2nd) plus arrears
Glendale, Emerald Isle:
Purchased 8/2005 $955,000
Listed 9/2007 $898,000; 182 days
Relisted 3/2008 $849,000; 26 days
Relisted 4/2008 $830,000 81 days, reflects in MLS as “in escrow, accepting back up offers” And MLS Remarks tell the remainder of the story: “3 BEDROOM 3 BATH, REMODELED 2 STORY HOUSE IN EMERALD ISLE AREA OF GLENDALE. PROPERTY IS ON A FLAG LOT. SUBJECT TO LENDER'S APPROVAL FOR SHORT SALE”
Owed $1,054,000 (1st, 2nd AND a 3rd) plus arrears
Purchased 10/2004 $649,000
Listed 2/2008 $750,000 – another short sale that didn’t sell
Owed: $845,000 (1st and 2nd) plus arrears
Glendale, Financial District Condo:
Purchased 11/06 $360,000
Listed 7/07 $365,000
Owed $288,000 plus arrears
This is interesting because the owners apparently refinanced in January of 2008, perhaps just in time to pull out any remaining equity, it appears this was a first payment default.
Northwest Glendale Condo:
Purchased 7/2001 $174,000
Owed $369,000 (1st and 2nd) plus arrears
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