Fountain of Youth Slows to a Trickle

The fallout from the housing crisis is still being felt today. One major casualty is the rate of homeownership in the country, which has fallen substantially. The picture is especially bleak for younger households, who comprise the bulk of first-time home buyers. According to U.S. Census Bureau data, the biggest declines in homeownership were among households headed by those under 35 years of age. Rates for this demographic plummeted from a peak 43.6 percent in the summer of 2004 to 36.3 percent at the end of September 2012.

Meanwhile, households aged 35 to 44 experienced a decline in homeownership from 70.1 percent at the start of 2005 to 61.8 percent as of last year's third quarter.

There are two major reasons for the decline in homeownership among younger people. First, tight lending requirements and weak labor markets made homeownership unattainable for many in the younger age brackets. Second, foreclosures caused some of these homeowners to become renters or cease to be households entirely and move in with friends or family.

Also of concern is the fact that declining homeownership rates for younger households have broad ripple effects ranging from delays in marriage and having children to reduced wealth accumulation.

Source: "In the Wake of the Housing Bust, Fewer Young Homeowners," U.S. News & World Report (01/22/13) © Copyright 2013 Information, Inc.

Buying a home is not like buying a car! Have someone who can help guide you through the curves, ups, downs and joys! Contact me today! Laura Key, Real Estate Agent Laura.A.Key@gmail.com www.KeyCaliforniaHomes.com

8 Kitchen Trends to Watch in 2013

Kitchens are a popular spot that home shoppers judge in a home. So what are the trends in the kitchen for 2013?HomeThangs.com, a home improvement superstore, offers up some of the following kitchen design predictions for the New Year: 1. Modern style: Kitchens are getting more modern in style, boasting simplified lines and offering up big, open spaces perfect for entertaining.

2. Tucked-away appliances: Appliances designed to blend in with the rest of the kitchen, like with the same wood of the cabinets, are becoming more popular. Also, some appliances, like undercounter or mini refrigerators or trash compactors, are being tucked away into a kitchen island.

3. Lots of lights: Great lighting in the kitchen is becoming more important, with lighting being layered with a mixture of task lighting and ambient lighting. Under-cabinet LED lights are becoming more commonplace.

4. Supersized kitchen islands: “2013 kitchen design trends are moving away from dining rooms and toward eating, drinking, and interacting in the kitchen itself, and a large kitchen island complete with bar stools is the perfect way to make this happen,” according to HomeThangs.com. this helps to create “a nice open-air feeling – especially if one can be used to bridge kitchen and living areas, another major 2013 kitchen design trend.”

5. Neutral color schemes: The use of neutral colors in the kitchen is on the rise, particularly in shades of grays and greens and a variety of wood tones. Bright colors are being reserved for only small accents in the kitchen.

6. Fancy appliances: Professional gas ranges and induction cooktops are popular kitchen appliances for making a more gourmet kitchen.

7. Decorative range hoods: Trends are moving away from a conventional stainless steel trapezoid-shaped hood to more decorative range hoods. These hoods may have built-in LED lights and are even serving almost like a decorative chandelier for a kitchen island.

8. Glass backsplashes: High gloss is “in” for cabinets, appliances, and backsplashes. A single-sheet, back-painted glass blacksplash is growing in popularity, which are also known for being easy to clean. These glass backsplashes are also reflective, adding a polished decorative touch to kitchens. Glass mosaic tile sheets are also increasing in popularity.

Source: Melissa Dittmann Tracey, REALTOR(R) Magazine

Photo Credit: HomeThangs.com

Interesting in buying or selling? You need someone experienced to help make your journey easier!  Laura Key, Real Estate Agent (DRE: 01908085) Laura.A.Key@gmail.com www.KeyCaliforniaHomes.com

Short Sale Process Cut in Half or More, Freddie Mac Says

Short sales are getting much shorter, Freddie Mac says. The mortgage giant launched a Freddie Mac Standard Short Sale program on Nov. 1 that sought to speed up the short sale process and make it easier and more transparent. "We estimate that the time to complete a short sale will decrease by approximately 50 percent to 75 percent," as a result of the changes, writes Tracy Mooney, Freddie Mac’s EVP in a recent blog post.

Among the changes that took effect Nov. 1, 2012:

• Mortgage servicers have 30 days to make a decision on a short sale once they receive an application. If they need to negotiate with a third party, they have 30 additional days. A final decision on the short sale must be made within 60 days.
• Mortgage servicers are required to acknowledge they received the short sale application within three days of submission. Servicers must provide weekly status updates if they end up needing more time to review the application past the initial 30-day period.
• Mortgage servicers have authority now to approve short sales when qualifying financial hardships for home owners who are past due or current on their mortgage payments.
• Mortgage servicers are also now able to approve short sales without seeking a separate review by the mortgage insurance company.
• Following a short sale, home owners may be able to qualify for up to $3,000 in relocation assistance.

Source: “The Shorter Short Sale: Long on Borrower Benefits,” Freddie Mac Executive Perspectives Blog (Jan. 22, 2013)

First-time Home Buyers Face Greater Competition

First-time home buyers are playing a larger role in the housing market, but they’re finding big changes. Thirty-nine percent of home sales nationwide were from first-time home buyers during the 12-month period ending June 2012, according to the National Association of REALTORS®. That's up from 37 percent a year earlier.

But while first-time home buyers once had a huge inventory of homes to choose from, now they’re finding tightened supplies and steeper competition for what’s left.

Housing inventories are hovering at record lows in many markets, limiting supply. First-time home buyers face increased competition from investors, who are often trying to snatch up the same bargain-priced housing deals. Investors often make all-cash offers, too, which makes it difficult for buyers requiring financing to compete against them. Also, banks have tightened up their underwriting standards, creating more hoops in just qualifying for financing.

It’s not easy to be a first-time home buyer, some say. But first-time home buyers are critical to a healthy housing market. They allow existing home owners to sell and trade up into larger homes.

To respond to the changing housing market, first-time home buyers may need to broaden their search and be more “flexible and compromise,” says Chip Rowand, a Broward County, Fla., real estate professional.

Also, first-timers shouldn’t automatically settle for a Federal Housing Administration mortgage due to the low down payment requirements (usually 3.5 percent of the purchase price). The FHA can have several restrictions that makes some sellers prefer buyers who offer cash or who are using conventional loans, says Stephen B. McWilliam, president of Greater Fort Lauderdale (Fla.) REALTORS®. Some conventional loans require just 5 percent down and so may serve as an option for first-timers.

First-timers also need to be able to act fast and be able to have their financing processed quickly if they are going to stay competitive. Some banks won’t sign off on mortgages for eight to 12 weeks. But some sellers won’t wait that long. Some housing experts suggest first-timers look into working with a community bank or local mortgage banker, which often don’t have as long a wait.

Source: “First-time Home Buyers May Have to Compromise,” Sun Sentinel (Jan. 10, 2013)

Looking for a free 1st Time Home Buyer Class? Contact Laura Key at Laura.A.Key@gmail.com An educated buyer is a smart buyer!!!!

Competition to Buy Remains High in California

Are you ready to buy your new home? Contact Laura Key for top-notch service! Home Education, Home Buying, Selling a Home, Short Sales, Luxury Homes!  She has you covered! www.KeyCaliforniaHomes.com

Laura.A.Key@gmail.com

Homeowners Benefit from Tax Credit for Green Remodeling Projects

While uncertainty regarding the fiscal cliff may have had consumers concerned about the overall economy and how taxes would be affected, those who have purchased homes for sale in Los Angeles County and made eco friendly renovations could benefit from a tax credit that has been extended. The American Taxpayer Relief Act pushed the $500 tax credit through the new year, so projects done in 2012 and in 2013 are eligible. The tax break itself , the non-business energy property tax credit, gives homeowners $500 off their taxes for making approved energy-efficient improvements. Some renovations include the installation of a new front door or other Energy Star labeled appliances and products.

Breaking down the credit, 10 percent of the cost of building materials, not including labor for insulation, windows and doors, greener roods, heat pumps, furnaces and corn-fueled stoves. In addition to savings when filing taxes, homeowners can expect to see reduced utility bills with these changes.

(Source: Today's MLS Real Estate)

7 Home Improvement Projects for $1,000 (or Less)

By: Lisa Kaplan Gordon Published: November 1, 2011

Americans still think buying a home is one of the best decisions they’ve ever made. Here are some ways to increase your home’s value and comfort for less than $1,000.

We knew reports of the death of American home ownership were greatly exaggerated (nod to Mark Twain), and now we’ve got the numbers to prove it.

A just-released survey by the Meredith Corp., which publishes Better Homes and Gardens magazine, says the vast majority of people polled believe owning a home is a smart financial move and a source of pride.

Here are some results of the 2,500 people surveyed online:

• 86% of home owners still feel owning a home is a good investment.

• 85% feel "owning a home is one of their proudest accomplishments."

• 69% of Americans who don’t currently own a home agree with the statement, "No matter what happens in the U.S. housing market, owning a home is still an important goal in my life."

• 68% of Americans plan to spend money on their homes in the next six months, with roughly half (49%) expecting to pay up to $1,000.

A thousand bucks may not seem like a lot, but it goes long way toward improving the value and comfort of your home. Here are some projects we recommend:

1. Add a new entry door. Spruce up your curb appeal and save energy by upgrading your exterior door. Steel doors, which can mimic many types of wood, typically run for $400 at big-box stores and offer the strongest barrier against intruders.

2. Get organized. Decluttering and maximizing storage space are inexpensive ways to transform a home. Add space to kids’ rooms by installing platform or bunk beds ($400-$600); neaten piles of shoes with shoe organizers ($20), which can do double duty as catch-all organizers in family room closets and kitchen pantries; extend bookshelves to the ceiling, creating storage in otherwise dead space.

3. Save with a programmable thermostat. Switching from a manual to a programmable thermostat (less than $500) can save you up to $180 a year in energy costs. The latest models offer remote programming via the Internet.

4. Replace cabinet hardware. If you’ve got traditional knobs and pulls, try contemporary; change from staid to whimsical. Big-box retailers often have huge selections for budget prices. (10-pack for $20).

5. Update bathroom flooring. Give bathrooms a quick facelift by replacing old tile with vinyl flooring or ceramic tile, which can cost as little as $3 per square foot for material and installation.

6. Create luxury with a shower panel. Turn you bathroom into a spa with a programmable shower panel with adjustable spray jets, fog-free mirror, and multifunctional shower head. Most systems easily attach to existing plumbing. Panels typically sell for $360.

7. Turn a mudroom into a garden room. Bring nature inside by recasting your drab mudroom into a flower-filled garden room. (If you already have a utility sink, you’re halfway there. If not, it will cost you $200 to $350 to tap into existing, nearby plumbing, and $80 for a plastic tub.) Repurpose an old wood table into a potting bench. And hang your basket collection from J-hooks attached to a forged iron curtain rod ($100).

www.KeyCaliforniaHomes.com

Need a Real Estate Expert! Call Laura Key today! Caring and professional! 

Foreclosed Home Owners Become New Crop of Buyers

Foreclosed Home Owners Become New Crop of Buyers

DAILY REAL ESTATE NEWS | WEDNESDAY, JANUARY 16, 2013

Home owners who faced foreclosure a few years ago are back, and they increasingly want to buy a home again, mortgage brokers report.

The Federal Housing Administration allows people who have lost their home to foreclosure to purchase a home again three years following a foreclosure.

"It's an interesting phenomenon because, three or four years ago, these people were losing their homes. Now they're out shopping for a new home,” says Chris Apodaca, a California mortgage broker. “It wasn't swift and sweeping legislation that did it, simply a matter of perseverance. These folks waited three years and now they can buy again.”

About 1 million families enter foreclosure every year, according to the Mortgage Bankers Association of America.

Source: Broadview Mortgage

www.KeyCalifonriaHomes.com

Levitated Mass Moves to LACMA

Love it or Hate it  the "ROCK" is here!  After a long and slow 105 mile journey the new attraction has arrived at its destination!  The 340 ton boulder from a riverside quarry will be the star attraction for the "Levitated Mass." attraction!

As I write, I am looking outside our 29th story window at the massive attraction and have a few mixed feelings.  I love art, it's pretty cool to see it hanging from the truck it was pulled in on however what true purpose does it serve the community.  I guess I have "limbo thoughts" just as it hangs in limbo from the massive chains awaiting its final placement.  

I do love being in the middle of it all!  If you love being in the thick of the action, there are many homes available in this area for you to pick from.  Please call me with any questions you may have.  As always, I am "Making Miracles Happen from the Miracle Mile"

Underwater Sellers, what are your Options? Cash to Short Sell? Cash for Keys? Foreclosure?

We get these questions and would like to share our thoughts about this dilemma.  Some home owners who are underwater may not know their alternatives. The “Cash for Keys” is a program that banks do for some home owners. The “new twist” you’ll be hearing more about is “Cash to Short Sale”. Lenders are figuring out that if there is anything they can do to make a deal happen, they need to do it. This apparently is what is starting to take place with people that are trying to “short sale” their homes. Instead of “Cash for Keys” to homeowners that lose their homes to foreclosure. This was not offered to home owners who were trying to short sale their home. Often the banks would basically give them a certain time to complete the short sale until they foreclosed.

Now because of tight lending practices, new buyers would take so long to qualify, it is often “too little, too late” to close escrow before foreclosure.  When that happens it seems everybody loses. The lenders lost a willing & able buyer and the seller because, now, not only did they lose their home to a foreclosure, but also because a foreclosure was now on their credit report instead of a short sale. (It may be better to have a short sale than a foreclosure on a credit report?) Plus, the buyer may or may not wait until the home came back on the market at a later date.

Source:  http://realtyworld-sierraproperties.com by Douglas Zeller

The U.S. Foreclosure Crisis, Beverly Hills-Style

The dynamics of the residential real estate collapse are very different in elite neighborhoods

The careworn house not far from Santa Monica Boulevard resembles millions of other homes that have been foreclosed on since the calamitous U.S. housing crash four years ago.

Garbage spews from trash bags behind the property. A smashed television leans against broken furniture. A filthy toy dog lies on its side, an ear draped across its face. The garden is overgrown. The house needs a paint job.

Yet the property on North Rexford Drive, Beverly Hills, California, is no ordinary foreclosure.

A sprawling, Spanish-style estate, fringed by majestic pine trees and located near the boutiques of Santa Monica Boulevard, its former owners were served with a default notice in 2010; they were $205,000 behind in their payments on mortgages totaling $6.9 million.

Welcome to foreclosure Beverly Hills-style.

Some 180 houses in Beverly Hills, the storied Los Angeles enclave rich with Hollywood stars and music moguls, have been foreclosed on by lenders, scheduled for auction, or served with a default notice, the highest level since the 2008 financial crash, according to a Reuters analysis of figures compiled by RealtyTrac, which tracks foreclosures nationwide.

As in the default-ravaged suburban subdivisions of Phoenix, Arizona, and Tampa, Florida, plunging realestate prices are the root of the problem in Beverly Hills.

But the dynamics of the residential real estate collapse are very different in elite neighborhoods such as this. The majority of delinquent homeowners here owe more than $1 million. Many are walking away not because they can't pay, but because they judge it would be foolish to keep doing so.

"It's a business decision, not an emotional one which it is for normal people," said Deborah Bremner, owner of the Bremner Group at Coldwell Banker, which specializes in high-end properties in the Los Angeles area. "I go to cocktail parties and all people are talking about is whether it is time to walk away, although they will never be quoted in the real world."

She said she had seen in Beverly Hills a big increase in "strategic defaults," in which owners who can still afford to make their monthly mortgage payment choose not to because the property is now worth so much less than the giant loan used to buy it during the housing bubble.

Strategic default is an especially appealing option in California, one of only a handful of U.S. states where primary mortgages made by banks are "non-recourse" loans. That means the loan is secured solely by the property, and banks cannot go after a delinquent owner's wages or other assets if they default.

Bremner said she helped a client buy a Beverly Hills mansion last year that the prior owner had bought for over $4 million. He decided to stop paying his $3 million mortgage - even though he could easily afford it - when the value of the property had dropped to $2.5 million.

"They were able to comfortably cover the loan," Bremner said. "They were just no longer willing to see the value of the property drop."

A huge "shadow inventory" is building of elite homes that are in default but have not been put on the market. Of the 180 distressed properties in Beverly Hills, only 12 are up for sale.

The backlog reflects the pent-up flood of foreclosed properties of all price ranges that are expected to hit the U.S. market this year, especially after five major banks reached a $25 billion settlement last week with the U.S. over fraudulent foreclosure practices.

'Jumbo' loans Across the United States, the largest increase in foreclosures and delinquencies, compared with 2008 levels, is with "jumbo" mortgages - loans too large to be insured by Fannie Mae and Freddie Mac, the government controlled mortgage finance providers. Foreclosures on jumbo loans are up 579 percent since 2008, greater than any other form of loan, according to a report last month by Lender Processing Services, Inc.

Strategic defaults are now more likely among jumbo loan-holders than any other type of borrower, according to a report issued late last year by JPMorgan Chase & Co. Nearly 40 percent of delinquencies among non-governmental mortgages, which are mostly jumbo loans, are strategic defaults, the report said.

"Now that these homeowners with jumbo loans are finding out you can do this, more and more are doing strategic foreclosures," said Jon Maddux the CEO of YouWalkAway.com, which advises homeowners who are "underwater," the term for those whose loans exceed the value of their home.

Nathaniel J. Friedman, a Beverly Hills lawyer, insists he is not a strategic defaulter - that he never missed a mortgage payment in his life. But he stopped making payments on his five-bedroom, six-bathroom Beverly Hills house on Schuyler Road three years ago.

Friedman, who had mortgages totaling $3 million with the now-defunct Countrywide Home Loans, returned home one evening in January 2009 to find a letter from Countrywide freezing his $150,000 line of credit, which was linked to his second $900,000 loan. His primary loan was $2.1 million. The property is worth about $2 million today.

Friedman says he decided to stop paying out of a sense of vengeance from the moment he received that letter. He has been in negotiations for months with Bank of America, which took over Countrywide after its collapse, to modify the loan.

"I thought to hell with it," he told Reuters. "Why should I keep feeding a dead horse if the bank has no confidence in me?"

"I was able to maneuver things my way because of the inertia of the banking sector," Friedman said. He believes the bank will blink first, and eventually modify his loan.

Source:   Thomson Reuters, www.msnbc.msn.com/id/46411361/ns/business-real_estate/#.Tz1aT8VSSKY

Mortgage-Audit Firm -- Surprise! -- Finds Lots of Errors in Foreclosures

A study of California foreclosures released late yesterday found that 99% of the files examined had some sort of irregularity and 84% of them had “one or more clear violations of law.” The study provides fresh evidence, to some, that the $26 billion foreclosure settlement withBank of America and other big lenders was just a down payment on their ultimate liability for “robosigning” and other illegal acts.

But let’s look at the report, and who wrote it. It’s byAequitas Compliance Solutions, a Newport Beach, Calif. firm that says it specializes in “complex litigation, investigation and internal audit issues” for regulators, investors and homeowners. In other words, Aequitas earns its keep by finding errors in mortgage paperwork for lawyers and regulators. It also has a unit that does court- or regulat0r-appointed compliance monitoring of lending institutions — a growing business as regulators crack down on mortgage servicers and get them to sign settlements that require continuing oversight by outside entities. Under the national foreclosure settlement, banks agreed to hire North Carolina’s former banking commissioner, Joseph Smith, as an independent monitor .

There’s nothing wrong with this, and I’m not suggesting Aequitas was biased or found irregularities that weren’t there. But readers should always consider the source. And once again, while the report found extensive errors, they were almost entirely upstream of the homeowners who were failing to make their payments on time. The closest thing to an error that directly affected a borrower was the failure to properly give notice of default “in person or by telephone.” In 6% of the foreclosures, Aequitas found no affidavit attesting to compliance with this requirement under California law. Does that mean that notice wasn’t given, or that the affidavit was missing? And does it mean that any of the 6% were not in default, and only found out they were going to be foreclosed when a sheriff walked up their driveway? The report doesn’t say, but I doubt it.

What Aequitas did find was a laundry list of technical violations in how the paperwork accompanying a foreclosure was processed. Seventy-five percent of the foreclosures had an error in the assignment of the deed of trust, meaning the handoff between one lender and another was botched in some way. This would be of concern to investors who own the underlying notes — but has there been a single case of an investor suing because the collateral ended up in the wrong hands? Aequitas found that in 27% of the foreclosures a trustee or servicer signed an assignment of the deed of trust, instead of the original owner of the note, for example. That couldmean that somebody snuck into the courthouse and stole a deed of trust that actually belonged to somebody else. Has it happened? Does it affect in any way the rights of the homeowner who isn’t paying his mortgage? The only way I can think of is if the homeowner wants to delay the foreclosure by asserting legal errors in the process.

The firm also found a number of foreclosure sales that occurred less than 20 days after the Notice of Trustees sale, casting doubt on the legitimacy of the title transfer to the new owner. That would be a problem for whoever buys the house from the bank. And there’s a thing called title insurance to cover that, I believe. (Though in Massachusetts, it could be a problem.) But no matter, it is a problem, and the banks could be liable for the damage it causes.

Aequitas also found widespread problems relating to MERS, the nationwide database for mortgages that lenders use to streamline foreclosures. In 58% of the sales, the beneficiary listed in the Trustees Deed Upon Sale conflicted with the investor information in the MERS database, the firm found. The report doesn’t explain how the discrepancy could cause a homeowner to be illegally sold out of his house.

Aequitas notes in the introduction that bankers complain “inadvertent violations should not provide windfall benefits to reckless borrowers.” That ignores the important role of California law as a last line of protection for borrowers against abusive practices by lenders, Aequitas notes. California, like many other states, allows banks to include clauses in mortgages allowing for non-judicial foreclosures with less court oversight. That comes at a cost, Aequitas notes — as would requiring every mortgage to allow only judicial foreclosure. Foreclosures in New York City have virtually ground to a halt as judges question the paperwork and require lawyers to personally attest to its accuracy.

Conservatives typically are accused of elevating legal process above substance, of looking only at whether the courts followed the rules and not whether the outcome was just. In this case, the roles are reversed. As the Aequitas report shows, the foreclosure process was “utterly broken,” with missed handoffs and improper documentation nearly every step of the way. Homeowner advocates want to use those errors to slow down foreclosures, distribute $1,500 checks to people who already lost their homes, and impose tougher regulations on lenders. As Aequitas puts it:

What’s at stake here is more than merely fairness and minimal due process. Foreclosures impact not only homeowners, but also entire communities and housing markets. The integrity of California’s record title system is also at stake because the validity of title for subsequent purchasers is dependent on those that precede it.

It’s the conservatives who are saying wait: Despite the errors who was actually hurt? The law makes for ironic role reversals.

Source: Daniel Fisher, Forbes Staff www.forbes.com

A List of My Favorite LA Things ... AND ... Not So Favorite

It's been six months now since my move to Los Angeles.  Every day brings a new adventure and new things that take may take me a little time to get use to.  I know every city has pro's and con's but I thought as a new resident I would share some of my list with you.

First let's discuss just a few of the PRO's.

1. LA has some of the most amazing sunsets! I work on the 29th floor and every evening when I am not out with clients I get to see the sky light up in the most amazing sky show ever.  I once read a bumper sticker that read "God Does Good Lighting".  I must agree.
2. LA has warm winters!  I tend to be on the "chilly side" of life but all in all, we do not have snow and the most we need is a light coat to get through December and January.  It's now February and it's 74°F!  Gotta love that you need sunscreen all year!
3. You never sit and twiddle your thumbs and ask yourself "What is there to do today?" you sit and throw a dart at a list of things and say "THAT ONE".  There is NEVER a lack of activity going on in Los Angeles.  Shopping, shows, beach walks, walking in the sun, basketball games, Dodgers games, etc, etc, etc.  The list never ends!
4. Diversity in culture!  I am a people watcher and sometime just sitting in the park and watching people can be the best afternoon entertainment.  Red and Yellow, Black and White, it's so precious to see this sight!  The languages intrigue me and I love it.
5. FOOD - GOD HELP ME....The food is endless!  Thai town, Korea Town, China Town, Sunset Strip, Melrose, Santa Monica.  You can't take two steps without finding a new place to temp your taste buds! I have yet to try the famous Roscoe’s Waffle and Chicken but that’s next on my list. Which leads me to the perfect realization that I will need a GYM soon and there seems to be one on every corner as well!
6. As I have posted earlier in my blogs…the La Brea Tar Pits.  It’s a childhood dream of mine and now I walk through the park almost daily.  Ah, the fresh smell of tar in the morning.  Nuf said!

There is so much more I can add to this list, but I will save those as we walk through this blog journey together.  So, how you liking the journey so far?

Let’s NOW discuss just a few things from my CON list.

1. The sidewalks are nasty and dirty and I hate to even walk in my own house after being outside.  I guess when you live in a place that has over 3,792,600 people (according to the US Census) it’s a little hard to keep a city sparking clean 24 hours a day.
2. I know this is not my home state of Kentucky, but I hate that people don’t really smile at you. I am use to looking people in the eyes and smiling and saying hello.  I don’t always get that back.  Oh well…that won’t stop me.
3. Traffic…OMG…I don’t think I need to say much more than that.  If you think a drive should take 20 minutes, you better count on an hour!  No logic for traffic at any time a day.  It could be midnight and you can sit in traffic! Being a Real Estate Agent this can be a “LOO LOO” for appointments.  It’s giving me the shivers as I type this.

So now you see at this point I have WAY more items on my PRO list than on my CON list.  All in all I’d say I am a happy California girl!

Follow me on Twitter, Facebook, Yelp, Google+ and Foursquare! Maybe we can share some laughs and smiles along the way.

Great West Hills Home 4 Bed 1.5 Bath

HUD HOME - WEST HILLS CALIFONRIA

$410,000

4 Bedrooms 1.5 Baths

Click Photo for Virtual Tour!

3 Ways Homebuyers Kill Their Own Real Estate Deals

Here are three ways homebuyers are defeating their own deals in today's market:

1. House hunting too long. As many as 60 percent of the homes for sale in some markets are short sales. Many other listings are bank-owned (also known as real estate owned or REO) properties, and those homes tend toward two extremes: terrible condition, or so nice at such a low price they receive multiple offers.

Even the nicer, nondistressed homes on the market can end up in and out of contract over and over again due to appraisal or other lending-related issues.

As a result, it is not at all bizarre to hear homebuyers today say they've been house hunting for a year, 18 months, even two or three years. When you house hunt that long, you become susceptible to house hunt fatigue, which causes irrationally extreme overbidding out of sheer exhaustion.

Alternatively, it can cause you to settle for whatever house you can get, even if it doesn't actually meet your needs -- then spend the next 10 years obsessively spending to upgrade, improve, repair and furnish the place to try to make it more like the home you actually wanted. 

Both of these outcomes negate and deactivate the bargain you stood to score. 

To avoid house hunting too long, it's uber-important to get and stay clear on the differences between what you want and what you need, and to work with a local real estate professional you trust.

Look to your agent to get and keep your expectations centered in reality, so you can make more strategic decisions throughout your entire house hunt, like house hunting in a price range where you're likely to both find homes that will work for your life and be successful in your efforts to obtain one.

2. Making lowball offers way too low. Overbidding seems like an obvious way to cancel out the bargain potential of your deal. But making excessively low offers -- offers sellers couldn't afford to take if they wanted to -- can have the very same result.

Buyers who think they can operate strictly on the basis of buyer's market dynamics -- without realizing that most sellers will need to make enough to pay off their mortgage or at least receive the fair market value for their home -- are cutting off their own noses to spite their faces, all in the name of trying to score an amazing deal. 

Note to "lowballers": If you don't actually secure the home, the superlow price you offered is no deal at all.

3. Freak-outs, stress, drama and mayhem. Once was, it was mostly the buyers uneducated about the homebuying process who tended to freak out and stress the most, especially at the top of the market. These were the folks who found themselves defeated at every turn by buyers who knew what they were up against and were prepared to make their best offer on their first offer.

Fast forward, and now the norm is for buyers to spend much more time reading up on what to expect, but the inundation of information can create brand new mindset management challenges.

Almost every buyer is stressed about whether they can qualify for a loan, and about buying into a down market. Some buyers try to apply national headlines about home prices being depressed to the superlocal dynamics of their neighborhood market.

This is unwise if you happen to be, for example, trying to buy a home in the boomtown real estate markets of Silicon Valley. Others go the opposite direction and deny that the basic truths about, say, buying a short-sale listing will actually apply to them (attention homebuyers: buying a short sale usually takes a long, long time). 

The emotional freak-outs that result from having your expectations shattered, sometimes brutally, in the course of buying a home often lead to panic-based and fear-based decisions, which can be costly in the short and long term. Additionally, the stress itself can take a toll on your ability to be productive at work, and can even impair your relationship with your mate, neither of which are worth any deal you think you stand to strike. 

Again, managing your expectations by working with a trusted broker or agent you feel comfortable relying on to understand the market in your neck of the woods and the type of transaction you want to pull off is essential to downgrading the role emotion plays in your real estate decision-making.

Call Laura Key today to schedule a one on one appointment to learn more!  310.866.8422 or email Laura.A.Key@gmail.com

Source: http://lowes.inman.com/newsletter/2012/02/02/news/175752 by Tara-Nicholle Nelson 

The Most Important Short Sale Facts!!!

Do educate yourself. This is THE most important thing you can do.  Short sales can be complicated. You need every bit of information you can get when you jump into the short sale process.

Don’t wait until it’s too late. If you drag your feet and hide from the fact that you’ve stopped making mortgage payments, it will cost your credit rating and it will put any chances of a short sale in risk.

Do be diligent. There have been very closable short sales that fail because the homeowners either stop responding to their agents, stop returning paperwork, stop returning phone calls, stop caring, etc. It can be a difficult process, but at the end of it you will be free of the mortgage, the upside-down house and your financial future will have a better foundation.

Don’t stop taking care of your home. Yes, you will be moving, but if you stop mowing the lawn or keeping the place tidy, that unkemptness will discourage any potential buyers.

Do keep paying your HOA dues! Any unpaid HOA dues will need to be settled either before or at the close of a short sale escrow. Sometimes the buyer or the first lien mortgage bank will contribute to these outstanding bills, but not every time. And Home Owner Associations will send your defaulted HOA bill to a collection lawyer who will slap you and your property with their own outrageous charges.

Don’t rent your home out. In these economic times there are unsavory renters, many of them lost their own homes, that don’t mind giving you the first month’s rent and a security deposit, only to never pay you another payment. You lose the house to foreclosure, but they live rent free for the foreseeable future.

Do your homework when choosing a real estate agent or broker when you go to list your house for a short sale. The wrong short sale agent can ruin your chances of avoiding foreclosure.  Short sales require diligence, confidence and an unmatched work ethic. Find that short sale REALTOR that knows her stuff, knows how to work and knows exactly what the banks want to approve your short sale.

Don’t think that you need a real estate agent that knows your neighborhood to short sale your home. In a short sale transaction, it’s about the short sale negotiation and working relationship with your lender(s), not that your home’s location is special compared to the listing around the corner. Out-of-area agents easily price properties using a Comparative Market Analysis (CMA). In fact, banks regularly pay agents and real estate brokers a minimal fee, usually $50 or $75, to price out-of-area properties for them. Your local neighborhood real estate agent may not be the right person. You need a tough and knowledgeable short sale specialist.

Do expect to move soon, or not for months. When your home receives an offer that is just the start for your short sale transaction. But the bank could decide to approve your short sale right away, which means you may only have 30 to 45 days to relocate. But, the approval process could take up to three to six months!

Don’t move prematurely. It makes no sense to pay rent while your home sits empty. Communicate with your agent and keep updated on where the short sale process is.

Don’t stop paying your water bills, sewer bills or trash bills! Any unpaid bills may slow down or stop the short sale process.

Do consult your tax man or even a tax attorney when considering a short sale. Even the best short sale agents are not legally allowed to advise on tax implications of your particular situation, and the best short sale real estate agents don’t. A tax accountant CPA or real estate attorney has a better understanding and the legal right to advise you on such matters.

Don’t think that you must have a real estate attorney to execute your short sale. Most times these lawyers don’t understand real estate or the short sale process as well as an experienced short sale agent does. In fact, many if not most of these lawyers offering short sales require an upfront fee to process your short sale.  real estate agents and brokers only collect commissions from the proceeds of the sale, which comes out of the bank’s pocket, not yours.

Do let your real estate agent put a yard sign in the yard. Yard signs tell buyers trolling streets looking at neighborhoods and houses that yours is a possible candidate.

Don’t make viewing appointments unavailable and hard on buyers and their agents. The more potential buyers that see your home the better chance of short selling it and avoiding foreclosure. Make that home as available to buyers as possible!

Do yourself a favor and remember that millions of Americans are going though their own short sale, or unfortunate foreclosure. This economy is dreadful, and many are experiencing financial hardships and your particular situation is nothing to be ashamed of.

Don’t apply for a home equity line of credit or any other type of credit. If you own other properties that have equity, refrain from pulling money out of any of them during a short sale approval. Your bank and any of your bank’s back-end investors will dig deep into your credit history and find this activity. This kind of action says you are just out for your own financial bottom line, and yes, they will take offense to that.

Do a quick pick up of toys, laundry and any other items lying around when a buyer’s showing appointment is scheduled. Buyers will criticize your messiness like your mother-in-law, and worse, it could affect their offer which in turn could affect your short sale!

Don’t make the mistake of thinking a foreclosure is not much worse than a short sale. It is. A foreclosure will decimate your credit; it will keep you from owning another home for years and it will be a part of your financial incompetence far more than you hope it won’t.

Do keep your hardship letter short and sweet. Explain your situation as-matter-of-factly as possible. Then your bank will look at your finances, tax filings and other documents to verify and support your story. But DO NOT include in your hardship that you bought your home for more than it’s worth. The bank does not care your home is underwater. The bank is losing money too.

Don’t strip the house of its fixtures or other potentially valuable assets. Taking the pool system, or the ceiling fans or the beloved touch-action faucets will degrade your home’s marketability, and for what? A few hundred bucks will not make the financial blow of foreclosure any softer.

Do all your paperwork and return to your real estate agent in a timely matter.  Short sales can die if the proper paperwork is not supplied. It’s a silly way to screw your short sale, but it happens all the time.

Don’t use a short sale negotiating company. They will charge you large upfront fees that they don’t have to return to you even if they do not complete the short sale. And these companies aren’t held up to the same Department of Real Estate code of ethics that real estate agents and REALTORs are. In fact, some banks will not work with them!

Do call and communicate with your bank(s) and let them know you are attempting a short sale. They have thousands of mortgages defaulting, and if they don’t know you are pursuing a short sale, your property may automatically be classified as a pre-foreclosure. Not keeping your mortgage holder informed of the status of your short sale can help expedite your house to foreclosure which will not help your short sale.

Don’t violate the bank’s At Arm’s Length requirement for the short sale. The Arm’s length agreement required from the short sale lender prevents you from “renting the house back”. To avoid any fraud or risk that can result in the bank coming back at you for the balance of your loan. Do it by the book and follow the rules. The risk is not worth it.

Do know that credit card companies may decide to pull your credit due to foreclosure. When a foreclosure shows up on your credit, it says that you are in financial distress and your credit risk increases dramatically.

Don’t think you can’t short sale if you own other properties. This is a common mistake many multiple property owners make. A bank will more than consider a short sale even if you own two or more homes.

Do clean the home and property when you move out. Remove any trash, debris and take or dispose of any of your personal property. The condition of the property before transfer can have a negative effect on the buyer and their desire to own the home, and give them a reason to back out. Cleanliness is next to Godliness, and Sold Short Sales!

Don’t assume the information about short sales you read on the internet is always correct. There are many real estate professionals, and many not-so-professional individuals, giving advice regarding short sales. Some do not have a clue how to handle a short sale, let alone give advice on the subject. Your best bet is to call and talk to any prospective short sale experts. Get a feel of their knowledge base and real estate confidence, and above all else only hire a real estate short sale agent with experience.

DO CALL Laura Key at 310.866.8422!  I am a Short Sale Expert! HAFA, Making Home Affordable, and many more programs, just give me a call, I will  help you through this difficult time!

Follow me on twitter, facebook, yelp, google+ and foursquare! Maybe we can share some laughs and smiles along the way.

Source:  Garrigus Real Estate Blog

California State Senate Votes to Extend Mortgage Protections

California lawmakers voted Monday to extend a law passed during the peak of the mortgage crisis that provides added protections for property owners, renters and neighbors of foreclosed properties.

The law passed in 2008 says foreclosure proceedings can’t begin until the lender has tried for 30 days to work out alternatives with the delinquent homeowner.

Lenders also must notify renters that they are beginning foreclosure proceedings. And they must give renters 60 days’ notice before evicting them from a foreclosed property.

They also are required to maintain vacant foreclosed houses or risk fines up to $1,000 a day.

The law was set to expire after this year, but senators voted to extend it another five years, through 2017.

“Unfortunately, foreclosures remain a major problem throughout the state. This legislation continues important protections for homeowners and renters that have proved tremendously helpful in this trying time,” Sen. Ellen Corbett, D-San Leandro, said in a statement after her SB708 passed on a 32-1 vote.

Senators unanimously approved a second bill, this one designed to prevent the California Housing Finance Agency from foreclosing on certain borrowers who rent out their homes.

The prohibition is limited to homeowners who are current on their mortgage payments, but rent out their homes because they owe more than their house is worth. The bill’s author, Sen. Mark DeSaulnier, D-Concord, said it is designed to help property owners who find themselves in financial trouble because of circumstances like a lost job or growing family, and is not aimed at helping housing market speculators.

Housing agency officials previously said they believed they were required to foreclose if the property was no longer the borrower’s primary residence. The agency suspended those foreclosures in October at the urging of DeSaulnier and Senate President Pro Tem Darrell Steinberg, D-Sacramento.

The agency’s board is scheduled to consider the policy at its meeting in March. DeSaulnier said his SB447 would give the agency the statutory authority to change its policy.

There was no opposition and no debate on either bill. Both bills now go to the state Assembly.

Follow me on twitter, facebook, yelp, google+ and foursquare! Maybe we can share some laughs and smiles along the way.

By DON THOMPSON, Associated Press

The Miracle Mile is Back, Baby

In its latest issue, the Los Angeles Business Journal, which calls 5700 Wilshire home, highlights the frenzied activity the Miracle Mile’s seen in the past few years on the back of the office space boom in the area. The neighborhood had slowed down starting in the sixties, although it never fell on truly hard times. Still, thanks to giant mixed-use projects, like developer BRE’s derided asshat at 5600 Wilshire and Legacy Partners’s much better-liked 5550 Wilshire building(and in a few years, BRE’s giant Wilshire/La Brea project), the neighborhood is lately seeing a fresh influx of young residents and trendy burger places like The Counter (and Umami and Five Guys). Revamped offices spaces and comparatively low rents have attracted music and media companies (notably Oprah’s OWN) from Hollywood and Beverly Hills, while new hotels and luxury car dealerships are opening. Send a thank you note to Michael Govan, the director of LACMA, who’s helped double the museum’s attendance, extended the campus, helped attract a movie museum, and helped make the whole vicinity more desirable. Though some storefronts remain empty and certain retail is less than upscale (Ono Hawaiian BBQ, the Gold for Cash store, etc.), optimism is strong, especially since two subway stations, and maybe a trolley, are on their way.

Monday, January 23, 2012, by Neal Broverman www.LACurbed.com

Foreclosures fall to lowest level since 2007

Foreclosure filings and repossessions fell to their lowest level since 2007 last year.

Total filings, including default notices and bank repossessions were down 33% for the year to 2.7 million, according to RealtyTrac, the online marketer of foreclosed properties.

One in every 69 homes had at least one foreclosure filing during the year, while 804,000 homes were repossessed. That's a significant improvement from the peaks reached in 2010 -- when 1.05 million homes were repossessed -- and the lowest levels seen since 2007.

More than 4 million homes have been lost to foreclosure over the past five years.

While the declines seem like good news for the housing market, where a flood of foreclosed homes has depressed home prices, much of it is due to processing delays caused by fall-out from the "robo-signing" scandal that broke in late 2010.

During the year, banks spent more time making sure paperwork was legal and proper, creating a backlog in the foreclosure pipeline. As a result, the average time it took to process a foreclosure climbed to 348 days during the fourth quarter, up from 305 days a year earlier.

"Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year," said Brandon Moore, chief executive officer of RealtyTrac.

However, Moore said there were "strong signs" during the second half of the year that lenders are working through foreclosure backlogs in certain markets. He expects foreclosure activity to rise above 2011's level but remain below the peak hit in 2010.

Low rates offer some help for homeowners

Early in 2011, many forecasters were predicting a wave of foreclosures due to resetting adjustable-rate mortgages, but low mortgage rates helped many borrowers refinance into more affordable loans, said Moore.

The government helped as well, through efforts like the Home Affordable Refinance Program (HARP), which made refinancing easier for borrowers who owe more on their mortgage than their homes are worth.

Turning foreclosures into rentals

Government foreclosure prevention programs, including HARP and the Home Affordable Modification Program (HAMP), have started about 5.5 million mortgage modifications since April 2009, according to the U.S. Department of Housing and Urban Development.

"Programs like HAMP and HARP have definitely made a dent in the foreclosure problem," said Moore "However, they are certainly not living up to their billing of preventing several million foreclosures. In addition, many [HAMP] homeowners fall back into foreclosure later on."

Of course, there were still plenty of factors working against homeowners in 2011, including the continued erosion in home prices. Falling prices rob homeowners of home equity, which they can tap if they need emergency cash.

Foreclosure hot spots

Hot spots for foreclosures remain mostly in "bubble states," where speculative investors helped drive up home prices beyond their fundamental values during the mid-2000s housing boom.

Nevada, where one out of every 16 households received some kind of default notice during the year, was the worst hit of all, a distinction it has held for the fifth consecutive year.

Arizona had the second highest foreclosure rate and California came in third. Florida, which had been running neck-and-neck with the other "Sand States" in past years, fell to seventh, behind Georgia, Utah and Michigan.

Among metro areas, Las Vegas suffered from the highest foreclosure rate in 2011. California put seven cities in the top 10, led by Stockton in the second slot. Other cities in the top 10 included Phoenix, which finished sixth, and Reno, Nev. was eighth. 

By Les Christie @CNNMoney January 12, 2012: 8:18 AM ET

California House Dems Call for Recess Appointment at FHFA

Brian Beutler writes that President Obama will likely have to make more recess appointments if he wants to staff key positions, including the newly-created vacancy at the Office of Management and Budget, as Jack Lew has become White House Chief of Staff. The assumption here is that Republicans will react to recess appointments at the CFPB and the NLRB by refusing to confirm any other Presidential appointee, and that’s a reasonable assumption.

But the President won’t get pressure just from Republicans on naming recess appointments. House Democrats in the California delegation, the largest in the Congress, wrote a letter late yesterday to Obama asking him to recess-appoint a new director to the Federal Housing Finance Administration. That institution has been without a confirmed director for over two years, since David Lockhart left.

The President has never had his own nominee at FHFA. And Democrats believe that FHFA, which currently oversees Fannie Mae and Freddie Mac, is uniquely positioned to help the country out of the housing mess. They accuse acting director Ed DeMarco of obstructing efforts to aid the housing market and keep borrowers in their homes. Here’s an excerpt from the California Dems’ letter, which I’ll put in its entirety on the flip:

As part of the FHFA’s ability to promote policies that will prevent foreclosures, they have the authority to establish rules over residential mortgages that Fannie Mae, Freddie Mac and other government enterprises are able to underwrite. FHFA has consistently and erroneously interpreted its mandate far too narrowly and as such has failed to take adequate action to help homeowners and has brought an end to successful, local initiatives—such as the PACE (Property Assessed Clean Energy) program [...]

As the fiduciary of government-backed entities, there are steps that the FHFA can take to help prevent future foreclosures while also protecting taxpayers. Installing a permanent Director of the FHFA will allow the FHFA to move forward to make key decisions that will help keep families in their homes and improve our economy. We appreciate your recent appointment of Richard Cordray as the new Director of the United States Consumer Financial Protection Bureau over similar Republican opposition and we urge that you take the same action to put in place a permanent Director to the FHFA.

I’m of two minds on DeMarco. He has interpreted his mandate very narrowly. It’s a bad thing when he refuses to engage in principal reductions for troubled borrowers, even though that would make more money for Fannie and Freddie in the long run, because he doesn’t want to take the short-term financing hit. But it’s a good thing when he sues 17 banks over misrepresentations of the mortgages in the securities they sold to Fannie and Freddie, with the hope of forcing repurchases of those mortgage pools.

There have been signs that DeMarco is warming to a more activist stance. He agreed to the changes to HARP, which is more of a stimulus program than a program that will save homes, but which will allow expanded refinancing come March of this year on GSE-owned properties. Freddie Mac just initiated a program for a 12-month forbearance (where the borrower can skip payments) for unemployed borrowers, although Democrats maintain that not everyone eligible will receive that forbearance.

Most promisingly, DeMarco is considering a principal pay-down program put forward by a California Democrat, Zoe Lofgren, that would allow underwater homeowners with GSE loans to have their mortgage payments go entirely to equity for five years, waiving the interest payments. DeMarco said he would look into the idea back in October, and there have been leaks since then suggesting that principal pay-down would happen. However, there has been no final word, and officially FHFA “continues to evaluate” the Lofgren proposal, even though in a meeting with House Dems they promised an assessment within two weeks.

I don’t think some in the Administration would have any problem getting rid of DeMarco – they don’t particularly like his aggressive stance on bank repurchases. But that would not necessarily be the best news for the housing market or the rule of law. If anything, the California Dems’ action shows that the previous recess appointments have opened a Pandora’s box for the Administration, and now everyone wants a recess appointment tailored to their concerns.

The entire letter from the Congressional Dems in California is below the fold.

The President The White House Washington, DC 20500

Dear President Obama:

We urge you to act on behalf of the American people and immediately make an appointment for the Director of the Federal Housing Financial Agency (FHFA). For two and a half years, Senate Republicans have been blocking the appointment of this position, causing there to be no permanent Director. The FHFA regulates and oversees Fannie Mae and Freddie Mac, which together hold 70% of mortgages in the US. The current economic crisis began in the housing market and our economic recovery is dependent on the important work pending before the FHFA. It is time to move forward and put in place a permanent FHFA Director.

According to RealtyTrac, 224,394 U.S. properties had foreclosure filings in November, 2011. This means that 1 in every 579 housing units received a foreclosure filing nationwide. In California, 1 in every 211 housing units received a foreclosure filing. And there are fears that a new set of foreclosure waves may come in the next few months. According to RealtyTrac cofounder, James Saccacio, “November’s numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs or short sales sometime early next year…some bellwether states such as California, Arizona and Massachusetts actually posted year-over-year increases in foreclosure activity in November.”

It is clear that we must take immediate steps to prevent more foreclosures. As part of the FHFA’s ability to promote policies that will prevent foreclosures, they have the authority to establish rules over residential mortgages that Fannie Mae, Freddie Mac and other government enterprises are able to underwrite. FHFA has consistently and erroneously interpreted its mandate far too narrowly and as such has failed to take adequate action to help homeowners and has brought an end to successful, local initiatives—such as the PACE (Property Assessed Clean Energy) program. The PACE program allows property owners to finance energy efficiency measures and renewable energy projects for their homes and commercial buildings, thereby reducing their energy costs and making them better able to make mortgage payments. It has been successful in many of our districts, however, in July of 2009 FHFA issued a decision that essentially put an end to PACE programs across this country.

As the fiduciary of government-backed entities, there are steps that the FHFA can take to help prevent future foreclosures while also protecting taxpayers. Installing a permanent Director of the FHFA will allow the FHFA to move forward to make key decisions that will help keep families in their homes and improve our economy. We appreciate your recent appointment of Richard Cordray as the new Director of the United States Consumer Financial Protection Bureau over similar Republican opposition and we urge that you take the same action to put in place a permanent Director to the FHFA.

By: David Dayen Wednesday January 11, 2012 7:00 am