The Coming Change in FICO Scoring

Orange County Real Estate certainly has had its share of disruptions stemming from the current flood of distressed sales (i.e. short sales, foreclosures, bankruptcies, notices of default). Currently, there are 2 million distress sales on record nationwide, with another 2 million mortgages that are 90 days delinquent.

The primary reason for the trouble is that these black marks are the equivalent of dropping a bomb on your FICO score. A 750 can sink into the 500’s with startling speed. Lending institutions are plenty scared of all the credit-tarnished folks. Low score equals high risk. And the last thing a bank needs is another loan default in their swelling collections. If you’re one of the thousands of low score people, you’ll have an easier time climbing Mt. Everest in your bare feet than you will getting a home loan. For instance, if you’ve done a short sale, you’re facing a two year wait. A foreclosure will have you waiting it out for five to seven years. The upshot is that thousands and thousands of people are now disqualified from obtaining home loans.

Now here’s the dilemma. In order to pump up our economy, two essential things must happen:

1. People absolutely, positively need to have jobs.
2. People need to buy homes.

But how can a sufficient number of people buy homes if so many have been automatically disqualified by unsatisfactory FICO scores?

Dr. Hillary has a very simple prescription for relieving this major Real Estate body ache: overhaul the FICO scoring system so that many more people qualify for home loans. This entails doing one or both of the following:

1. Lowering the optimum FICO score to a more realistic level
2. Modifying the criteria used for determining a score.

I really believe the laws of economics will force this FICO adjustment. It’s inevitable. Banks don’t make money unless they make loans, right? Something has to give. And if economic pressures don’t shake things up, I’m fully prepared to persuade the lending institutions single-handedly.

In the meantime, many of you want an Orange County Home, and you want it now. So here are Hillary’s tips for protecting your credit score and boosting your chances of securing that all-important home loan.

• If you’re in escrow, don’t make a credit purchase for any one item costing $2,000 or more. Such a move could really smack your credit score down.
• Don’t open or close a new credit card prior to or during escrow. Again, a major credit score reducer.
• Never pay any bill late for any reason, especially during escrow.
• Never give your social security number to anyone while in escrow. The number could be used to facilitate a credit check, which in turn kicks your FICO score southward. This means, if you’re car hunting, keep your social security number privileged information. No social security number equals no credit check equals no lowering of score. Get the idea?

Ever been turned down for credit? Buy something you shouldn’t have? Have a credit experience you’re bursting at the seams to share? Hillary wants to hear all about it. Feel free to leave an illuminating comment on my blog. I’ll be happy to follow up with any help or insights that I can dig out of my creative reservoir.

You can also connect with me at 949.922.8490 begin_of_the_skype_highlighting 949.922.8490 end_of_the_skype_highlighting or hillary@thecoastalpropertyexperts.com.

Hillary’s Pick of the Week – 10/20/10

For this week’s edition, my search for the best of the best has uncovered a trio of jewels that definitely qualify as the three most expensive Orange County Homes on the market. Just feast your eyes on these beauties.

$24,000,000 22 Emerald Bay Laguna Beach HOM Real Estate Group Robert Giem

Designed by acclaimed architect Christ Light, a magnificent new home of nearly 5,000 square feet will be constructed on this sweeping oceanfront lot. Offers direct access to breathtaking Emerald Bay, a three car garage, and a pool just several feet from the sand. You and your guests will thrill to spectacular surf-line views and gorgeous golden sunsets year round. The lot stands out among Emerald Bay properties, offering a uniquely gentle slope to the beach and a more livable home with a lower vertical rise. A lot of wow for $24,000,000.

$19,950,000 31401 Mar Vista Laguna Beach Mark Whitehead Realty Mark Whitehead

Newly completed in 2010, this contemporary grand view estate rises over nearly12 beachfront acres of natural vegetation. Nestled within hundreds of acres of open land protected by no-building regulations, the property is a true architectural masterpiece ensuring the soothing comfort of complete privacy. You have the privilege of entering this sequestered domain via private bridge leading to a secluded motor court with 2 sets of garages and parking accommodations for up to 20 cars. Inviting atmosphere enhanced by colorful stones and plants blending seamlessly into the warm, cheery surroundings. Inside, you’ll discover extraordinarily large bedrooms, 7 bathrooms, formal and informal living and dining rooms, a grand kitchen, theater, and library. You and your guests also will delight in the infinity edge pool and spa, multiple deck gardens, private courtyards, entertaining areas, and a separate guest suite/games room. This jewel will shine for you for $19,950, 000.

$35,000,000 31887 Circle Dr. Laguna Beach Paul Realty J. Paul

Nestled in the serenity of a private drive, this turnkey pied a’ terre sits on Laguna’s premier promontory and looks out onto California’s stunning trophy beach. Offers a spectacular panorama of rugged outcroppings, geysering rock-splash, mysterious caves, sparkling tide pools etched into a rich abundance of diverse topographical highlights. This exquisite work of art features grandfathered forward position on promontory, walls of angled & reflective glass, and incomparable privacy woven into a spectacular views. Enjoy a greeting of morning sun as well as magnificent Catalina sunsets without direct heat or glare. Evening take on their own magic as you gaze out into a breathtaking panorama of twinkling lights. The home so close, & close enough to ‘touch’ waves without a cliffhanger feeling. Indulge your senses in one of the world’s most captivating oceanfronts for $35,000,000.

If you’d like to learn more about these or any other Laguna Beach homes, I’ll be delighted to help. As one of the area’s premier Coastal Property Experts, I can answer all of your questions and help you discover the numerous opportunities the Laguna Beach Real Estate market has to offer.

Feel free to contact me at 949.922.8490 begin_of_the_skype_highlighting 949.922.8490 end_of_the_skype_highlighting or hillary@thecoastalpropertyexperts.com.

Amazing Deals on Laguna Beach Cottage Homes

Hillary’s Pick of the Week – 10/7/10

Welcome to my latest pick of the week. Once again, my search for the best of the best has revealed a number of choice gems among the excellent selection of Laguna Beach properties.

$1,195,000 465 Osgood Ct Laguna Beach

Ease into a serene hideaway of cozy comfort highlighted by tasteful upgrades and glimpses of ocean vistas. This 1936 Woods Cove cottage truly is a dream-come-true featuring lustrous hardwood floors, striking granite counter tops, custom cabinetry, a Dutch door, recessed lighting, custom-mantle fireplace, a soothing sitting area, and a full 2 car garage with laundry and extra storage. Low maintenance charmer is now on the market for an amazing $1,195,000.

But Wait, There’s More: Other Laguna Beach Properties That Caught My Eye:

$1,250,000 441 Park Ave Laguna Beach

Two cottages on a single lot give this beach beauty a double dose of sparkle. The cottage at 441 is enhanced by 2 spacious bedrooms, 2 baths, and a 2 car garage. A newly-added bedroom/office opens to a private patio offering inspiring glimpses of the Pacific Ocean. The cottage at 431 features 2 bedrooms, 1 bath, and the blissful seclusion of a private patio. Step outside into the crisp ocean air, and in minutes you can reach the beach or bustling downtown Laguna. A unique opportunity to own a piece of the Laguna Beach experience for only $1,250,000.

$1,389,000 450 Shadow Ln Laguna Beach

Nestled in a secluded lane in the Heart of the Village, this Laguna Beach cottage is a scenic stroll away from miles of pristine beaches, dozens of world class restaurants, and one-of-a kind shopping. 3 bedrooms, 3 bathrooms, hardwood floors, a fireplace, and vibrant gardens help create a truly unique beachside experience. Breathtaking ocean vistas are yours to glimpse from a luxurious master suite. A treasure at $1,389, 000.

$2,200,000 2 N Encino Laguna Beach

Classic 1930’s styling gives this single level cottage a warm friendly character that whispers of simple pleasures. Completely remodeled in 1999, this turn key charmer redefines luxury and convenience with a number of striking touches such a gourmet kitchen, French doors, fireplace, bay windows, a surround sound system, vaulted beam ceilings, wood paneling, hardwood and tile flooring, window awnings, retractable deck awning with wind monitor, and galvanized rain gutters. Impressing your guests will be a breeze on the spacious entertainment deck, which features a roomy BBQ area, as well as spectacular Catalina sunset views. A stroll away from the seclusion of a private beach, tennis courts, clubhouse, and a park. A true standout at $2,200,000.

If you’d like to learn more about the many priced-to-sell Laguna Beach cottages that are available, I’ll be delighted to help. As somebody who is well-focused on this one-of-a-kind community, I can answer all of your questions and help you discover the numerous opportunities the Laguna Beach Real Estate market has to offer.

Feel free to contact me at 949.922.8490 or hillary@thecoastalpropertyexperts.com.

Laguna Beach Properties Under $999,000

Hi and welcome to my latest pick of the week post. Once again, my search for the best of the best has revealed some amazing deals among the excellent selection of Laguna Beach properties currently available.

20321 Sun Valley Dr, Laguna Beach MLS # L34199 $729,000

Brushed by gentle ocean breezes, this single level Laguna Canyon hideaway is nestled amidst the picturesque tranquility of a shimmering stream, acres of lush fruit trees, berry bushes, and cacti, and abundant wildlife of every description. Inside, you’ll immerse yourself in a cheerfully elegant environment graced by double doors, three large bedrooms, two baths, floor to ceiling windows, a raised hearth fireplace, built-in bookcases, and signature artwork. Brick patios and garden walkways enliven the charm of this one-of-a-kind residence. Minutes from the ocean, the home is conveniently close to the major roadways and world-renowned art festivals of Laguna Beach. Incredibly, this Laguna Beach home is offered at only $729,000.

But Wait, There’s More: Other Orange County Properties That Caught My Eye

20348 Sun Valley Dr, Laguna Beach MLS # L32814 $699,000

Gotta luv this one. Tucked away in the rustic privacy of a cull-de-sac, this single story home offers easy access to the breathtaking splendor of Laguna Coast Wilderness Park. Thrill to idyllic, park-like vistas from the cozy comfort of this single story retreat, which features three spacious bedrooms, two full baths, and an over-sized two car garage. Dining and entertaining will be an entirely new experience thanks to a recently-remodeled gourmet kitchen highlighted by a large island perfect for casual eating, granite countertops, and exquisite hardwood cabinetry. Accentuating the home’s spacious master suite is an upgraded bath. Although secluded in the natural serenity of Laguna Canyon, this Laguna Beach home is conveniently close to a rich offering of Laguna Beach amenities, as well as nearby toll roads and freeways. Offered at an irresistible $699,000.

255 Cypress Dr 14, Laguna Beach MLS # L33683 $710,000

No doubt about it. This Laguna Beach condo sparkles with seacoast charm. Once you settle into the classic ambience of this romantic, top-floor villa, you’ll experience an exhilarating synergy of comfort, style, and breathtaking views. Spacious enough for entertaining guests, the 1,050 square ft. unit also accommodates your favorite automobile with a single car garage boasting plenty of extra storage room. When the yen for a bit of seacoast sizzle strikes, you can stroll, strut, jog, or bike your way to the never-ending excitement of nearby Laguna Beach. At $710,000, this beautiful Laguna Beach home is one ocean of a deal.

If you’d like to learn more about the many priced-to-sell Laguna Beach homes that are available, I’ll be delighted to help. As somebody who is well-focused on this one-of-a-kind community, I can answer all of your questions and help you discover the numerous opportunities the Laguna Beach Real Estate market has to offer.

Feel free to contact me at 949.922.8490 begin_of_the_skype_highlighting 949.922.8490 end_of_the_skype_highlighting or hillary@thecoastalpropertyexperts.com.