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I want to buy a Santa Cruz Home in the next 60 days

Sunday, August 26, 2007
by Patti Lyles

Q: I want to buy a Santa Cruz Home in the next 60 days. You asked me what my FICO scores are.  I just found out that the score was below what you would have liked.  My FICO scores are a little low, is there a way I can improve my scores very quickly?

A: The first rule of maintaining and keeping a healthy FICO score of 720 or higher is NEVER BE LATE!  Primarily any MORTGAGE PAYMENTS. I can't emphasize the point of how important it is to never be late on your mortgage payments.

But it is not the sole deciding factor of your FICO score, the three major credit bureaus involved with FICO scoring are Experian, Equifax, and TransUnion. All three of these companies use algorithmic equations taking in a multitude of factors in determining your FICO score. The FICO score range is between 300 and 850 and to get the best rates from lenders today, a mid-score of 720 is needed.

For example, if you have the following three scores, 680, 730, 745, you are in a position to get the most competitive rates because your mid-score of 730 is over the 720 benchmark score. So what happens if your mid-score falls under 720? There are a few things you can do to get a rapid turnaround in 30 days.

The first and most immediate impact is to look at your credit cards. If you have any credit cards at or over 50% of the maximum credit limit, pay those credit cards to under 50% of the credit limit immediately. For example, if you have a bank credit card and the credit limit is $5,000 and you have a standing balance of $3,500, pay that down immediately to 50% of the credit limit, which means sending a payment of at least $1,000 to bring the balance under $2,500. One of the biggest detriments to your FICO score is having what is classified as a revolving debt (a credit card) maxed out or over 50% of the balance. Once the revolving debt is paid down to under 50% of the credit limit, the impact on your FICO score can be significant.

What happens if you don't have the cash to pay down your credit card debts to 50% of the balance?. If you do not have the $1,000 to pay down the balance, you can ask for a credit limit increase. With the above example in mind, requesting the bank to increase your credit limit to $7,000 will reduce your debt to 50% of the credit limit and can give you a boost in your scores. But this is only for the most disciplined of people because most people are in the habit of just spending and putting more on a credit card once they are granted a credit limit increase.

There are other things you can do to improve your scores to buy that Santa Cruz Home which include limiting credit inquires to no more than 12 a year, do not cancel credit cards you may have had for a long period of time, and there are a list of others which we can go into with the lender you choose to work with on any Santa Cruz Real Estate transaction.

Vacation Home Sharing and Ownership

Tuesday, August 21, 2007
by Patti Lyles
Vacation Home Sharing is a way to have a piece of a Santa Cruz Home
Many people who wish to own vacation property cannot afford or justify bearing the full cost, maintenance and management burden when they expect to use the home only occasionally Santa Cruz Vacation home sharing creates a situation where the cost and management burdens of the vacation home are more closely related to actual usage. It is an excellent alternative to vacation rentals.

In vacation home sharing in Santa Cruz and surrounding areas, a group of families and/or individuals buy and share a vacation property for their own use and, sometimes, for rental to others when no owners are using it. A typical vacation home sharing agreement includes rules governing how often each owner can use the home, how usage is reserved and managed, how expenses and other responsibilities are shared, and when and how each owner can leave the group by selling his/her share, being bought out by other owners, or forcing a sale of the entire property.

Emaill me Patti@pattilyles.com for more articles that provides a comprehensive discussion of the issues associated with vacation home co-ownership.

Fraud reports rampant in real estate (poem)

Thursday, July 05, 2007
by Patti Lyles

Fraud reports rampant in real estate

As the real estate boom waves pull back from the shore
All the hidden cheats and liars exposed on the ocean floor
Where once the loud distraction of the ocean waters
Now a quieter afternoon opens the sky for government lawyers.

Investors scream foul as their dollars disappear
The schemes, the scams, inflated dreams fog the mirrors.
"But you promised big returns," they want to say in the ringmaster's ear.
But alas, the ringmaster is gone and their cries fall on deaf ears.

Foreclosed home's strange surprise

Thursday, July 05, 2007
by Patti Lyles
Buyers furious after easements uncovered

Q: We bought a home in the county of Santa Cruz in Felton.   That was sold 'as is' by the lender. The house sits on a 6-acre parcel of land. The home had been foreclosed upon.

We understand that the "as is" referred to the structural parts of the house. We accepted the condition and had a plumber come in to check things out. After we closed, our new neighbor came over and informed us of two easements he had on the property.

One easement is for the driveway, which isn't a problem. The other easement is to share the water well that is on the property. Apparently, not only do we share the well, but the pump for the well and the pressurizer, which is in the basement. We basically supply water to our neighbor.

I've spoken with my real estate agent, who told me that she knew nothing of these easements. She said she did not see them listed on the title documents and must have "overlooked" them. Nothing was mentioned at the closing about these easements and now we are required to supply this neighbor with water.

Can I sue the agent and the title company for not disclosing these easements? If we had known about them, we would have either not bought the home or revised our purchase offer.

We simply don't want to either be dependent on our neighbors or have these people depend on us to pay our electric bill so that water continues to pump into their house.

A: Hire an agent like me next time or one that reads the title and has a great relationship with local title officers that watch my back for stuff like this  ! Please call my attorney  Ernest H. Fox 831-427-2114 to help you figure out what sort of easements are attached to your property, if any. The neighbor may claim to have an easement but may have to back up his claim with written documentation. That documentation might even have to be recorded with the local recorder of deeds office or clerk's office in order to be valid.

You may also have a title issue, but first ask the attorney to help you sort through the paperwork to determine what you are required to do for your neighbor. But in general, taking the property on an "as is" basis may also include any and all easements that are attached to the property, not just its physical condition.

However, your purchase contract would have had language relating to the condition of the title to the home and what exceptions to title you would have been required to accept. If you obtained title insurance when you bought the home, the title company would have itemized all matters that affected the title to your home as of the day of your closing.

If at your closing, the easements were disclosed on your title insurance policy, you closed on the purchase of the home with those easements "disclosed" to you. If you did not purchase a title insurance policy and the easements are valid, you purchased the home and will have to take the home subject to the terms of the easement.

Lastly, if you purchased title insurance and the title insurance commitment did not disclose the easements, you might have a claim against the title company for their failure to raise the easements. A good real estate attorney should be able to help you in this regard.

Assuming that these easements are valid and you don't have a claim against the title company, you have to decide how you want to handle them. If the easement requires you to supply water, but not pay for it, you may be able to bill your neighbor for the cost of providing him with water -- even if the neighbor had never before been given a bill for these services. If the terms of the easement are in writing, your rights and responsibilities might be spelled out in that document.

Faced with such a bill, you might propose that the neighbor dig a new well for himself, on his own property. You may even want to contribute to the cost of the new well, in exchange for the neighbor agreeing to cancel the easement.

Once again, a competent real estate attorney should be able to identify any legal options you have and whether you were not provided with the proper disclosures.

Of course, the time to hire an attorney was before you made your offer on this foreclosed property, so that you could be sure you knew exactly what you were getting into before you closed.

What Your Money Will Buy in Santa Cruz Real Estate

Tuesday, July 03, 2007
by Patti Lyles

What Your Money Will Buy in Santa Cruz Real Estate

How much house your money can buy, and where, is crucial information to know before you begin your house hunt. Let's face it, If your budget is $350,000 and you're trying to replace that 2,500 square foot, four bedroom house in Kansas, something has to give. That house costs closer to one million in Santa Cruz County.

Santa Cruz County West

Under $300,000

Absolutely nothing. Nada. Zippo

Try Watsonville.

$350,000 to $600,000

2 or 3 bedroom, 2 bathroom condo in either Mariners Cover or Shelter Lagoon.

2 bedroom, 2 bathroom home on a very small lot.

3 bedroom, 1 bath older home in the Lower Westside.

$600,00 to $800,000

Luxury town home, 3 bedrooms and 2 bathrooms in Village Circle near the University.

3 bedroom, 2 bathroom older charmer on the Lower Westside.

2 bedroom, 2 bathroom fixer historic Victorian with lots of history and a large lot.

$800,000 to a Million

Newer 3 bedroom, 2.5 baths, gated Mediterranean town house on Beach Bill with ocean views one block from beach.

3 bedroom, 2.5 bath home within a few blocks of Westcliff and the beach.

4 bedroom, 3 bath Upper Westside Thatcher and Thompson home with ocean view close to the University.

Million Plus

Larger 4 bedroom, 2.5 bath, completely remodeled Victorian near the beach.

Anything along Westcliff Drive looking out over the ocean towards Monterey.

Santa Cruz County East

Under $300,000

Nothing. Try condo market in Capitola Shores or head toward Watsonville.

$380,000 to $630,000

2 or 3 bedroom, 2 bath condo in Harbor Knolls overlooking the back of the Yacht Harbor.

2 bedroom, 1 bath in the Emiline area close to freeway and downtown.

2 bedroom, 1 bath cottage style bungalow close to the beach in middle Seabright area.

$630,00 to $800,000

2 bedroom, 2 bath home near De Lavega Park in Prospect Heights.

Historic 3 bedroom, 2 bath home on Berkeley Way in Branciforte area.

4 bedroom, 2 bath ranch style home in Prospect Heights.

$800,000 to a Million

Spectacular 3 bedroom, 2 bath Cape Cod condo in yacht Harbor Cove. Yacht Harber and Ocean views with all the amenities.

Custom 3 bedroom, 2 bath home in beautiful Seabright.

Immaculate 4 bedroom, 3 bath home in Carbonera Estates.

One Million to Two Million

Ocean view, 3 bedroom, 2 bath home on the bluff on Eastcliff Drive.

4 bedroom, 3.5 bath Glen Canyon horse property estate.

Two Million Plus

Anything: the beach, large estates, the opportunities are endless.

July Fourth parades, fireworks, events, traffic and more

Tuesday, July 03, 2007
by Patti Lyles

July Fourth parades, fireworks, events, traffic and more

 

Events

 

 

 

 

Scotts Valley Fourth of July parade, 2006.

 

 

FOURTH OF JULY IN SCOTTS VALLEY: With the second-annual parade and the 10th annual Fireworks Spectacular. The parade starts at 3 p.m. Wednesday and runs along Scotts Valley Drive. At 5 p.m. Wednesday, a variety of activities, including game booths, climbing walls, volleyball, bounce houses and bocce ball, along with barbecue- and picnic-style food, will be offered at Skypark. At 6 p.m., enjoy music by the Dig Beats. Fireworks cap off the celebration. Fireworks $5 advance/$7 door. Call 438-3251.

MAY 2007 SANTA CRUZ REAL ESTATE REPORT

Tuesday, July 03, 2007
by Patti Lyles
MAY 2007 SANTA CRUZ REAL ESTATE REPORT
Current Market Rating: 2

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Buyer's
Seller's

Current Price Trend: 2

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Falling
Rising

Santa Cruz Market Conditions for MAY 2007: (122) active listings. $934,147 avg. list price. (list price range from $529,000 - $2,495,000) (78) avg. days on the market.

(19) pending listings. $927,263 avg. list price. (35) avg. days on the market.

(31) closed transactions. $794,241 avg sale price. (99.6% of list price) (34) avg. days on the market.

ZIP Code: 95060

Location Characteristics: Santa Cruz County is located on California's Central Coast, 65 miles south of San Francisco and 35 miles north of Monterey. Situated on the northern side of Monterey Bay and hugged by redwood forested mountains, Santa Cruz County has 29 miles of beaches and include 6 state parks and 6 state beaches. The nearest airport is in San Jose, just 30 miles north of Santa Cruz.

Mild with summer temperatures in the mid 70s and winter temperatures in the mid 50's. The sun shines 300 days a year and the humidity is low for a coastal city. Average rainfall is 31 inches per year, with most of the rainfall occurring between November and April. With occasional fog due to the ever changing Pacific currents.

DRE #01385517