EYE ON INTEREST RATES

Mortgage rates continued to rise and are predicted to behave like gasoline has recently..so don't be surprised if mortgage rates are over 7% before the end of the year, if not sooner. The 30 year fixed-rate mortgage averaged 6.735% this week, up from 6.67% last week. This time last year rates were nearly 1 point lower, at 5.738% What does that mean to your checkbook? Assuming you borrowed $400,000 your payment based on 5.738% would be $2,331 compared to $2,590 with a mortgage at 6.735% Need help getting pre-approved for a loan?  Just call (310)306-6525 x166 or email me dan@danmayrealestate.com

NOTICE OF DEFAULTS INCREASE 23% WHAT IS AN "NOD" AND HOW CAN I PROFIT??

According to an Associated Press article dated May 3, 2006, the number of California homeowners who received mortgage default notices (NODor notice of default occurs after 3 consecutive months unpaid) increased in the first quarter to the highest level in more than two years.

Lenders sent 18,668 default notices to homeowners from January to March — a 23.4% increase from the fourth quarter of 2005 and a 28.7% rise from the year-earlier period. The rate of change in the six-county Southern California region was higher, DataQuick said. The number of defaults rose 33% year over year to 11,102 from 8,330. San Diego and Riverside counties saw the biggest jumps in defaults, more than 50%.

NOD's or Notice of Default serves as an early indicator of possible foreclosures and signals a shift in the housing market.  Owners who are in default are often very motivated to sell and represent an opportunity to obtain a property at a relatively good, sometimes great, value.  I personally receive a weekly NOD list so please contact me if you are interested in pursuing this avenue for a property.

The hike in first-quarter default notices coincided with a slowing in the state's annual rate of home-price appreciation. The rate of price growth was 12.4% in the period, off the peak of 23% reached in mid-2004 when default warnings were at their lowest.

With slower appreciation, some distressed homeowners may find it harder to sell their homes for more than they owe their mortgage lenders, DataQuick said.

Still, the first-quarter increase is far below the record set in 1996, when 59,897 default warnings were delivered, according to DataQuick, which has been keeping track since 1992.

Typically, about 5% of homeowners who receive default notices end up losing their homes to foreclosure. More than 20 million Californians are homeowners. In 2005, 600,000 new and existing homes were sold statewide.

***** Investors Corner*****

1. St. Louis, MO  4 plex 2 story brick building built in 1901 and recently renovated with central air, updated electrical and new roof. Walking distance to park, botantical gardens and shopping.  Asking $279,000 Gross income is $28,680 100% occupied, less than 10 GRM.See Above Photo. Call (310)306-6525 x166 for more details.

2. Baton Rouge, LA 4 plex  fully renovated 2 story townhomes close to L.S.U. new tile, carpet, paint, roof, appliances, ceiling fans, possible condo conversion. Asking $140,000 Call (310)306-6525 x166 for more details.

3. West Los Angeles, CA 90034 Duplex Just Listed will be delivered vacant! 1 bed plus office or 2 bed home with 2 car parking and 2 bed 1 bath rental unit above. Great for owner/user. Castle Heights Elementary school, asking $639,999 Call (310)306-6525 x166 for more details.

"Links of the Month” See below for the (3) real estate related websites you should visit:

1. Test your 1031 and TIC (Tenant In Common) Knowledge

2. What is a Living Trust and Do I Need One?

3. Architecture Glossary

New Orleans Photos Taken by Dan May on May 1, 2006 Lower 9th Ward and Chalmette area  Hint: double click on the images to enlarge