The Orange County foreclosure process was made more complex, due to a new state law requiring lenders to provide more information to potential loan defaulters. On July 8th, 2008, California Governor Arnold Schwarzenegger enacted California Foreclosure Law SB 1137 - with additional foreclosure notification requirements activated sixty days later. This law required lenders to educate homeowners on more of their rights during foreclosure.

Traditionally, the Notice of Default (NOD), is the first phase of foreclosure, usually filed after borrowers miss three monthly payments. The new law requires lenders to make contact with homeowners to assess their financial conditions and consider options to avoid foreclosure, before issuing a NOD. Once contact has been made, the financial institution can issue a NOD thirty days later.

Furthermore, borrowers must be informed of their rights to request another meeting - which would occur within 14 days of the request. This law places more responsibility on lenders to assist homeowners in keeping their homes.

Due to increased paperwork and time investment by the financial institution, the number of NODs has declined from 162 NODs on one day, before the law was enacted; to only 18 NODs, after the NOD became law.

Some believe the law's effect on the number of foreclosures may be minimal over time - simply lengthening the foreclosure process. Lawmakers hope that increased education will lead to fewer foreclosures.

Certainly, as Orange County unemployment increases, the continued underlying economic problems suggest that the O.C. real estate market will remain stagnant even after the new law's passage.

Adam Brett
RE/MAX NOC
Fullerton, CA

www.RealtorAdam.com
800.977.ADAM

Come Join us for the 21st Annual Police K-9 Benefit Show.

On October 11, 2008. The show starts at 6:00pm.

Held at Glover Stadium - 1151 N. Anaheim B;vd. - Anaheim, CA 92801.

For Tickets or advertising please visit: www.ocpca.org or call 714.227.8886.

Adam Brett
RE/MAX NOC
Fullerton, CA 92835
714.496.8116
www.RealtorAdam.com

Some of Orange County's biggest apartment complexes' rent is looking to drop 3.1% this year. The last drop came in 2001 after the terrorist attacks of 9/11 when they dropped 2.7% as predicted by Axiometrics Inc. Although rents from the second quarter of 2007 are up 1.5% from the year before, rents have drop the last 2 quarters sequentially at 0.7% and 0.8%.

"You'd really need a big turnaround in the third quarter for it not to go down for the year," says Jay Denton at the Dallas-based apartment analytics firm. Denton believes that a quick turnaround in rent growth is unlikely as a result of Orange County losing jobs. 19,700 jobs over 12 months have been lost as of May.

Axiometrics predicts the vacancy rate of the second quarter to be 5.9%, 6% by the end of the year. Denton says, "but that puts us in interesting territory," rising vacancies will put pressure on large apartment complex rents. Orange County has hit a new high for total vacancies in the 12 that Axiometrics Inc. has been collecting data.

The study surveyed 248 complexes that average 281 units. The final numbers for the second quarter are expected in mid-July.

The Orange County Assessor's Office announced that property taxes will go down next year for about 100,000 homes and condos and about 16,000 timeshares due to declining home value. Roughly 570,000 homeowners in orange county will not receive a tax cut, even with a 20% drop in home value over the last year.

Prop. 13 was approved in the 70's as a tax-fighting measure and is now the cause to our housing slump. Assessor Webster Guillory had this to say about it, "A lot of people think that because the market value is going down, they should have their taxes lowered, They don't understand how Prop. 13 works. You're not taxed on your market value unless your market value is less than your taxable value."

Guillory assures that 150,000 homes sold between 2004 and 2007 are in the process of evaluation of home values, which would probably qualify for a tax break. People who purchased their home in or before 2003 are ineligible for a reduction because their current home value has exceeded the purchased home value. People may qualify for tax reductions if their home had been purchased in 2004 or later because their property has dropped in value.

Tax assessment notices will be mailed out, informing homeowners of the taxable value assigned to their homes as of January 1st. Taxes paid next November and February will be based of of these assessments. If property owners think the assessments are too high, they can file appeals between July 2 and Sept. 15.

OC's Best High Schools

Orange County's best schools owe their prowess to a combination of magnet programs, motivated students, strong arts and athletics, according to the first-ever Orange County Register ranking of public, comprehensive high schools.

Read about the schools, search our interactive databases and join the discussions about what makes a great high school.

Read about the schools:

1. OXFORD

2. TROY

3. UNIVERSITY

4. MIDDLE COLLEGE

5. IRVINE

6. OCHSA

7. LA QUINTA

8. CYPRESS

9. NORTHWOOD

10. WOODBRIDGE