Client Testimonials

“Ben is the definition of someone you can trust. Not only with your business/ real estate needs, but also for any personal matter. Ben has been a strong presence in the community two fold. He has helped so many families through tough financial times in and out of the court room. Secondly, he has provided an incomparable value helping me and others with their real estate investments both on the buy and sale side. His skills negotiating with sellers agents and buyers agents is unparalleled. I highly recommend his services for any real estate, or legal matter. His strongest suit is his undying work ethic, which consequently, always gets the deal done. If there was one person who I could go to, and know hands down that the deal will get done, It is Ben Engelby I know I can trust.” -- C. Price

"Thank you Ben and Rochelle for all of your help - from finding the right house, getting the offer accepted and navigating the wild world of lending - you were there for us from start to finish!" -- The Turner Family

"Rochelle did an excellent job helping me find a place in San Diego. She is warm, professional, and personal at the same time. She knows the market and helps you make the best decision in buying a home." -- K. Helf

“Ben saved me thousands of dollars in finding my dream vacation property only blocks from the beach in San Diego! He scrutinized all the available properties, and when he found the perfect place in foreclosure, he notified me immediately. He managed the details of the transaction, and I trusted his judgment and integrity. Although I was hundreds of miles away in another state, he made finding my 'paradise' smooth and easy. Thank you, Ben! I recommend you to anyone looking for property in the San Diego area.” -- D. Scott

“Rochelle is the broker 'extraordinaire' who went above and beyond to assist with all aspects of my recent real estate closing.” -- L. Feldman

“The team at Engelby Real Estate is the most competent and effective group of real estate professionals that we have ever worked with. Ben and Rochelle are well-informed about the San Diego real estate market and have proven to be an experts in their field. Within only a few days of listing our property, we were presented with two offers that were both above list price. They successfully sold our home for more money than expected, and in record time! We intend to retain Engelby Real Estate for all our California real estate needs, and highly recommend them to others.” -- The Torng Family

"Rochelle was an enormous help in successfully selling our condo San Diego. We worked with her from across the country and were very happy with her fast communication and the ease with which we were able to work from so far away. Our condo sold using the military HAP program and Rochelle assisted us with all of the program details. We would definitely use Rochelle again if we were to buy another house in the area!" -- The Wright Family

Time to be a Down Market Purchaser

5 reasons why it pays to buy a property in a down market:

5) More selection – Even when it’s a “buyer’s market,” that doesn’t stop people from selling houses. Deaths, divorces, job transfers and foreclosures don’t slow down just because it’s a buyer’s market. There will inevitably be a glut of houses on the market, and it only benefits prospective buyers.

4) More room to negotiate – A slower pace to the market means more time to walk away and make them sweat. Buyers have the upper hand, not only because there will be fewer prospective buyers to compete with, but also because there will be high inventory.

3) Greater room for appreciation – Even small home improvement projects can mean big returns during selling season. Profits are maximized when you keep overhead costs low by doing the projects yourself and when you score a great deal on your home in the first place by buying when the market is down.

2) Down payment – The money you saved toward a down payment goes further if costs are reduced due to a down market. Instead of a 20-percent down payment, you may find yourself with a 25- or 30-percent down payment.

1) Taxes – Simply put, there is never a bad time to own a home. The buyer’s market is obviously the best time to buy, but regardless of that, the lure tax benefits and credit record improvement should make you want to own a home yesterday.

Does it make more sense to rent or to buy in San Diego?

In its most recent Rent vs. Buy Index, real-estate data provider Trulia performed a quarterly comparison of renting and buying a two-bedroom home in the country's 50 largest cities.

The report claims that it's currently cheaper to buy than to rent in nearly three-quarters of the 50 largest cities in the country, with Miami, Las Vegas and Arlington, Texas, leading the list. New York, Seattle and Kansas City, Mo., topped the list of cities where renting makes more sense.

So where did San Diego land?

A little past the middle, at number 32. Trulia's assessment of America's Finest City: "Renting is less expensive, but buying might be better." Trulia estimated the median rent for a two-bedroom apartment in San Diego ranges from $1,500 to $2,200 whereas the median home price is $330,000.

San Diego's ratio was 15, right at the cut-off point at which owning is cheaper than renting.

Overview of Results:

• Price-to-Rent Ratio of 1-15: Owning a home is much less expensive than renting in this city.
• Price-to-Rent Ratio of 16-20: The total costs of homeownership in this city are greater than the costs of renting, but it might still make financial sense to buy depending on the situation.
• Price-to-Rent Ratio of 21+: Renting in this city is much less expensive than owning a home.

First-time Home Buyer Checklist

First-time buyers planning to make the shift from renter to homeowner this year should begin preparations as early as possible.

Prior to starting the home-buying process, potential buyers should make sure they are ready to buy a home where they will live for three to five years or longer, since it can take that long to build equity in a home and recoup investment costs.

The first step a home buyer should take in the home-buying process is to check their credit score. Lenders base mortgage qualification on a variety of factors, including income and assets, the borrower’s debt-to-income ratio, pattern of savings, and job stability. However, the most important factor is the credit score. Lenders tie the interest rate the borrower pays to the credit score, so borrowers with a credit score of 720 and sometimes 740 and above are the only ones who will pay the lowest mortgage rates. Borrowers with a credit score below 620 may not qualify for a mortgage at all until they can improve their score.

After the lender tells the borrower how much they can borrow, each potential homeowner should create a simple budget for themselves with income and spending to determine how much they are willing to spend on housing payments. Financial experts recommend that homeowners spend a maximum of about 30 percent of their gross monthly income on principal, interest, homeowners insurance, and taxes. Included in the budget should be approximately 1 percent of the home price for condo or homeowner association fees and maintenance costs.

Now that you have your financing lined up, a budget in mind, and an area that you want to live, you're ready to start shopping for a house!  Give us a call if you have any questions about the home-buying process and, of course, when you're ready to start viewing properties.

Massachusetts high court slaps Wells Fargo, U.S. Bank over improper foreclosures

The highest court in Massachussetts has invalidated foreclosures initiated by Wells Fargo Bank and U.S. Bank, saying the banks failed to prove in court that they they owned the mortgages and thus had legal standing to seize the homes.

The ruling in twin cases involved mortgages that were sold off and pooled with other loans in complex processes to create mortgage-backed securities, a type of bond widely traded by investors worldwide.

It's another setback for the home lending industry, which has been rocked by such disclosures as 'robosigning' - the practice at big banks of having employees certify in court to facts underlying foreclosures without taking the time to read the supporting paperwork.

New California Laws Impacting Real Estate

Senate Bill 931. No Short Sale Deficiencies - A seller's first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This applies to first trust deeds secured by one-to-four residential units, but it does not limit the lender from seeking damages for fraud or waste by the borrower.

Assembly Bill 1809 and California Civil Code section 2079.10. Energy Audit in Home Inspection Report - A home inspection and inspection report may, upon a client's request, include an audit of the energy efficiency of a home, according to the standards of the Home Energy Rating Systems (HERS). REALTORs® are encouraged to provide new HERS booklet to residential buyers, and delivery of this booklet will be adequate to inform the buyer about statewide HERS program.

Assembly Bill 1684. Restriction on Adverse Possession Claim - A claim for adverse possession requires, among other things, certified records of the county tax collector showing that all state, county, or municipal taxes have been timely paid for the five-year period the property has been occupied and claimed. Existing law merely requires proof that taxes have been paid for the five-year period, not certified proof of timely payments.

Senate Bill 1137. Enforcement of Mortgage Loan Originator Requirements - Anyone acting as a mortgage loan originator (MLO) without an MLO license endorsement will be guilty of a crime punishable by six months imprisonment plus a $20,000 fine. And a broker cannot employ or compensate a real estate licensee for MLO activities unless that licensee has a license endorsement. This law has also given the Department of Real Estate (DRE) the authority to deny or revoke a MLO license endorsement or take other action. This amends the MLO requirements for finance lenders and residential mortgage lenders under the Department of Corporation.

Senate Bill 1149. Post-Foreclosure Protection for Tenants - A notice to terminate a residential tenant who remains after a foreclosure sale must generally include a statutory notice of the tenant's rights. This requirement applies to an immediate successor-in-interest for one year after a foreclosure sale. The tenant's rights must be on a separate cover sheet or, for a 90-day termination, incorporated into the notice to terminate. Another provision of this bill protects a residential tenant's credit by generally prohibiting the court clerk from revealing unlawful detainer court records unless the plaintiff prevails at trial.

Senate Bill 782. Tenant Protection for Domestic Violence Victims - A residential landlord cannot terminate or fail to renew a tenancy based on domestic violence against the tenant or tenant's household members as specified. This law applies if the person restrained from contact with the tenant by court order or named in a police report is not also a tenant of the same dwelling unit. If the protected tenant subsequently allows the person restrained to visit the property, or the landlord reasonably believes the person restrained poses a physical threat to others or to quiet possession by other tenants, the landlord may serve a three-day notice to correct or quit.

Assembly Bill 2325. Expanding the foreclosure consultant law to include someone who performs a forensic audit of a residential mortgage loan.

Assembly Bill 1373. Requiring any mailed solicitation that offers to provide a copy of an owner's grant deed or other title records for a fee to include a prominent statutory disclosure that the copy service is not associated with any governmental agency and that the homeowner can obtain such records from the county recorder.

Assembly Bill 1800. Increasing the criminal punishment for renting out a residential dwelling without the owner's consent from six months imprisonment plus a $1,000 fine, to one year imprisonment, plus a $2,500 fine.

To view the official text and other new laws, please go to http://www.leginfo.ca.gov/.

Kiss 4 Percent Mortgage Rates Goodbye

The era of near 4 percent mortgage rates has ended after a quick rate rise since early November.

The average 30-year fixed mortgage rate has risen to 4.86 percent from 4.17 percent, according to Freddie Mac's weekly mortgage market survey.

Rates haven't been this high since May and forecasters now predict them to remain between 5 percent and 6 percent for all of 2011.

The increase from 4.25 percent to 5 percent will push payments higher for homebuyers and reduce purchasing power by almost 10 percent.