Real Estate: Palos Verdes - South Bay Beach Cities and the Greater Los Angeles area

Home sales, July 2010 for the Palos Verdes Peninsula and the South Bay Beach cities

2010-08-10T18:04:00.000-07:00

Hermosa Beach 90254, Manhattan Beach 90266,

S. Redondo Beach 90277 and the

Palos Verdes Peninsula 90274 and 90275.

Inventory is up, sales are flat while sales pending (in escrow) are up. Again, if you've read my other posts, you know I believe that low interest rates coupled with some great buying opportunities are still driving current sales.

If you're looking for more specific information on the Palos Verdes Peninsula, South Bay Beach cities or other areas please contact me with the details. Also be sure to become a fan of

Palos Verdes - South Bay Real Estate on Facebook!

Source: Trendgraphix, Inc.

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

Silver Lake, CA area Home Sales, July 2010

2010-08-09T18:34:00.000-07:00

Inventory continues to climb; sales are down by 258 units over June. As you will see in the graph below however, the number of properties "pending" (e.g. in escrow) is relatively flat. This is, no doubt mostly due to continued drops in interest rates. There are some fantastic buys out there right now and with historically low interest rates available on home loans, the savings (over 15 to 30 years) are significant!

If you're looking for more specific information on Silver Lake or other areas please contact me with the details. Also be sure to become a fan of Silver Lake Real Estate and Echo Park Real Estate on Facebook!

Source: Trendgraphix, Inc.

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

North Redondo Beach, CA - Home Sales July 2010

2010-08-09T18:03:00.000-07:00

As mentioned in an earlier post, SOCAL Sales Up 08 to 09, while Prices Level or Fall Off - July 31, 2010 inventory is up, sales are down. As you will see in the graph below however, the number of properties "pending" (e.g. in escrow) has continuted to climb. This is, no doubt mostly due to continued drops in interest rates. There are some fantastic buys out there right now and with historically low interest the savings, over 15 to 30 years are significant!

Source: Trendgraphix, Inc.

Buy or Lease in Historic Angelino Heights!

2010-08-06T19:52:00.000-07:00

Live in Historic Angelino Heights!

Angelino Heights is one of LA’s 1st suburbs est. in the late 1800’s. Although known for Queen Anne & Eastlake Victorian landmarks (50+), other architecture includes: Mission Revival, Craftsman/California bungalow, Brownstone & Streamline Moderne. Many of these historic properties have been restored; many more are waiting for that special buyer!

Become a fan of Angelino Heights Real Estate on Facebook

FREE Property List with Photos

Including Short Sales and Bank Foreclosures

Visit

AngelinoHeightsMLS.com

List generated by Robert Dixon, RE/MAX Palos Verdes Realty DRE License #01828273

SOCAL Sales Up 08 to 09, while Prices Level or Fall Off

2010-07-31T12:38:00.000-07:00

With the Federal Tax Credit deadline passing, April 30th there has been a very noticeable slow down. For example combined South Bay properties pending (reported start of Escrow April vs. May) were down to 799 in May compared to 1009 in April. Inventory, however has continued to climb from 2674 listed in April, 2845 in May and 3084 reported listed in June. Average price per square foot for South Bay, as a whole is at the lowest level since February however that covers a wide range of prices and demographics. As I continue to say, interest rates (whether buying or refinancing) are the highlight. Falling or level pricing and increased inventory is another.

Please contact me for numbers and prices on specific areas, if you’re considering buying, selling or leasing and especially if you believe you’re upside-down on your loan and fear you may lose your home as there are alternatives to foreclosure.

Southland home sales edge up, prices level off

July 13, 2010

Southern California’s housing market continued its slow crawl toward normalcy in June as sales volume rose and the median price slipped back a notch from May, but remained 13 percent higher than a year ago. Red-hot, fire-sale deals continued to give way to mere bargains in the lower- cost inland markets where first-time buyers and investors have competed fiercely, a real estate information service reported.

A total of 23,871 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 7.2 percent from 22,270 in May, and up 2.6 percent from 23,262 for June 2009, according to MDA DataQuick of San Diego.

The sales count was the highest since July last year when 24,104 homes were sold. It was the strongest month of June since 2006 when 31,602 homes sold. The average June since 1988 has had 28,086 sales.

“The market was wildly out of kilter a year ago, now it’s just somewhat out of kilter. We’re still seeing lots of bargain hunting, and we’re not seeing much discretionary buying. The single-biggest issue is still mortgage financing. Rates may be at record lows, but that doesn’t mean much if the lender won’t qualify you,” said John Walsh, MDA DataQuick president.

“Still, more money was spent last month buying homes in Southern California than in the past two years, and more money was loaned. The tax credits had something to do with that, though it’s not clear exactly how much. With the impact of the credits fading fast, the next few months will tell us a lot.”

The median price paid for a Southland home was $300,000 last month. That was down 1.6 percent from $305,000 in May, and up 13.2 percent from $265,000 for June 2009. The low point of the current cycle was $247,000 in April 2009, the high point was $505,000 in mid 2007. The median’s peak-to-trough drop was due to a decline in home values as well as a shift in sales toward low-cost homes, especially foreclosures.

Foreclosure resales accounted for 33.0 percent of the resale market last month, down from 33.9 percent in May, and down from 45.3 percent a year ago. The all-time high was February 2009 at 56.7 percent, DataQuick reported.

Government-insured FHA loans, a popular choice among first-time buyers, accounted for 39.0 percent of all mortgages used to purchase homes in June.

Last month 20.8 percent of all sales were for $500,000 or more, compared with 22.2 percent in May and 19.3 percent a year ago. Zip codes in the top one-third of the Southland housing market, based on historical prices, accounted for 29.6 percent of existing single-family house sales last month, down from 31.0 percent in May but up from 27.8 percent a year ago. Over the last decade those high-end areas have contributed a monthly average of 33.3 percent of regional sales. Their contribution to overall sales hit a low of 21.0 percent in January 2009.

High-end sales would be stronger, and the overall market recovery more robust, if adjustable-rate mortgages (ARMs) and “jumbo” loans were more available. Both have become much more difficult to obtain since the August 2007 credit crisis.

While 43.9 percent of all Southland purchase mortgages since 2000 have been ARMs, it was 6.6 percent last month, up from 6.5 percent in May and up from 2.7 percent in June last year.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 17.3 percent of last month’s purchase lending, up from 17.2 percent in May and from 14.9 percent in June 2009. Before the credit crisis, jumbos accounted for 40 percent of the market.

Absentee buyers – mostly investors and some second-home purchasers – bought 19.7 percent of the homes sold in June, paying a median of $220,000. Buyers who appeared to have paid all cash – meaning there was no indication that a corresponding purchase loan was recorded – accounted for 23.5 percent of June sales, paying a median $213,000. In February this year cash sales peaked at 30.1 percent. The 22-year monthly average for Southland homes purchased with cash is 14.1 percent.

The “flipping” of homes has also trended higher over the past year. Last month the percentage of Southland homes flipped – bought and re-sold – within a six-month period was 3.4 percent, while a year ago it was 1.9 percent. Last month it varied from as little as 3.0 percent in Orange and San Diego counties to as much as 3.8 percent in Los Angeles County.

MDA DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $1,251 last month, down from $1,293 for May, and up from $1,193 for June a year ago. Adjusted for inflation, current payments are 44.3 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They were 54.4 percent below the current cycle’s peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but is lower than peak levels reached over the last two years. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above- average, MDA DataQuick reported.

Source: DataQuick

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

SOLD June, Palos Verdes - South Bay Beach Cities

2010-07-02T21:06:00.000-07:00

SOLD during the month of JUNE 2010

61 The number of residential properties sold on the Palos Verdes Peninsula, 90274 and 90275.

120 The number of residential properties sold in the South Bay Beach Cities, El Segundo, Manhattan Beach, Hermosa Beach, Redondo and Torrance Beach.

Residential properties SOLD during the month of MAY 2010

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

Good Schools equal Property Value and Stability

2010-06-25T09:25:00.000-07:00

Palos Verdes Peninsula Unified and our excellent South Bay Beach Cities school districts failed to get a shout-out in this article, but we all know the significance of good schools and their correlation to property value and stability...

Good Schools, Bad Real Estate
Despite the housing slump, house hunting in good school districts frustrates parents who often have to settle for less house.

The Wall Street Journal
June 25, 2010 by Sarah Max

Oh, the sacrifices parents make.

Kiely and John Adams began their house hunt this spring with grand plans to upgrade from their small home in Cary, N.C., to a larger, four-bedroom house—preferably with an office and a bonus room—about 25 miles away in Chapel Hill, where Kiely plans on starting a Ph.D. program next fall.

They could have gotten all that and more for their $415,000 budget if they kept their search on the outskirts of Chapel Hill. But, determined to stay within the boundaries of Chapel Hill's highly-regarded school district, the parents of 5-year-old twins, Megan and Bevin, and 4-year-old Sean trudged ahead in what they dubbed "an exercise in compromise." Even when they did find a house that showed promise, it was usually snapped up before they could take a closer look. "Most houses seemed to come and go, come and go," Mr. Adams says.

It's supposed to be a buyer's market. Yet, for parents determined to buy in areas associated with top schools, those bargains may be harder to come by. When housing markets go south, "areas with exceptional schools tend to hold their value better than the market overall," says Michael Sklarz, president of Collateral Analytics, a Honolulu-based firm that specializes in real estate data analysis.

In Chapel Hill, where the Adams family was looking, the average single-family home price, based on price per square foot, has declined about 4.8% since the market peaked in 2007, according to Collateral Analytics, but houses there still command about a 48% premium, per square foot, to homes in the Raleigh-Cary metro area.

In other parts the country, home prices have dropped in areas with good schools, but the declines are typically nowhere near the levels in their surrounding metro areas. In Irvine, Calif., a city that regularly gets national attention for its quality schools, average price per square foot has fallen 18% since its 2006 peak, but prices in the greater metro area surrounding Irvine fell 33%. The same goes for Edina, Minn., where prices per square foot are down about 14% since their peak, versus 27% for the greater Minneapolis area. And in the brainy town of Andover, Mass., prices are down just 4%, versus more than 16% for the Boston metro division.

There are several factors at play, says Mr. Sklarz. Areas with good schools tend to be more affluent and were less susceptible to the sub-prime mortgage debacle so saw fewer foreclosures. What's more, homes associated with great schools generally sell faster, in good markets and bad.

All of this comes as no surprise to the real estate agents who work with education-obsessed parents. "Schools have a huge impact on home values," says Kathy Beacham, a real estate broker in Raleigh. When schools in her own well-to-do neighborhood were redistricted three years ago, the value of her million-dollar home dropped more than $150,000. "A good education has always been important but I don't remember looking at the numbers like parents do today," she says.

Then again, the numbers have never been so widely available. State assessments, independent ratings from websites like GreatSchools and Education.com and annual magazine rankings of America's top high schools have not only made it easy for parents to factor school test scores and parent-teacher ratios into their buying decisions, they've cemented the relationship between home prices and school quality.

When Florida rolled out its statewide grading system in 1999, the real estate market took note. According to research by David Figlio, who is now a professor of education, social policy and economics at Northwestern University, an A-rated school in Gainesville added about $10,000 to the value of a home there versus a B school.

Once a school is graded, the gap often grows. Strong ratings lead to better community support, which in turn leads to better schools. Today, the difference between an A school and B school might easily be $50,000 on a $300,000 house, he says.

That phenomenon isn't lost on residents of Bellevue, Wash., a Seattle suburb that is home to some of the best schools in the state. "I don't think there's ever been a school levy on the ballot here that's been turned down," says broker Michael Orbino. Even residents who don't have school-age children tend to stand behind the schools. It's not altruism; it's economics. All things being equal, homes in the Bellevue school district fetch as much as a 15% premium to those just outside of it, he says.

"But there's more to it than that," says Mr. Orbino. "Because the land is worth so much more in Bellevue, builders tend to build more expensive homes here," making the school district that much more expensive to begin with. By Mr. Orbino's estimate, the prices for single-family homes are down about 10% since the market peak. "But it isn't a catch-all," he says. Prices for ultra-luxury homes and condos, which generally aren't influenced by schools, are down 30% to 40%, he says. So while prices per square foot in Bellevue have fallen slightly more than the Seattle market overall, prices for more family-friendly abodes haven't necessarily seen the same declines.

The stabilizing effect of good schools is welcome news for those who already own property in school boundaries, but it makes it tough for parents to trade up to better homes. John and Kiely Adams considered themselves lucky to have found a three-bedroom home in a Chapel Hill neighborhood they liked and at a price in their budget. But, alas, they were forced to back out of the deal when their current home came up short in the appraisal. With their daughters' first day of kindergarten fast approaching, the couple will stay put for now and start the process over again next spring. "We don't want them to start kindergarten only to yank them out two months later," says Mr. Adams.

Left with few other options, some parents get creative. Bellevue school administrators have seen all kinds of tactics for skirting the district's policy that students spend at least four nights a week within boundary lines. Common ploys include using a family member's address or taking over a resident's utility bill, one of the documents used as proof of residency. The school district has uncovered 35 cases of enrollment fraud this year alone. Other families jump school boundaries by spending four nights a week in a small apartment and going home to a bigger house in another town for the weekends.

Two years ago, Daniel and Dee Shin used an inheritance from Mr. Shin's father to pay $410,000 for the "cheapest house they could afford" in Bellevue for the sole purpose of securing a spot in the school district for their then 11-year-old daughter, Kayla. The 900-square-foot circa-1955 rambler is "beat up and not insulated very well," says Mr. Shin, adding that he assumed that paying property taxes on the house would be enough to satisfy the school district's residency requirements even if the family actually resided in a 2,326-square-foot, four-bedroom home in the nearby town of Renton. Their new neighbors in Bellevue, evidently, didn't see it that way. They reported the Shins to the school district, and the district gave them an ultimatum: move into the Bellevue district by the time Kayla registers for high school in February, or start the following school year in another district.

The decision was clear for the Shins. They plan to spend the summer insulating the Bellevue home and doing their best to make it livable. Come January, they'll move into that house, and their extended family will move into the house in Renton.

The Shins considered just sending Kayla to a private school, but Mr. Shins says that suggestion triggered "on demand tears" from Kayla, who doesn't relish the idea of going to a different high school than her middle-school pals. After all the trouble the couple went through to get Kayla into Bellevue schools, they're determined to see her graduate from Newport High School, which, Mr. Shin is quick to point out, is consistently ranked among the best in the country.

As the father of three children ages 11, 14 and 16, Northwestern's Mr. Figlio understands the dilemma parents face. When he and his family relocated from Gainesville, Fla., to Evanston, Ill., in 2008, Mr. Figlio vetted the middle schools before making a decision about where exactly he and his family would live. For parents struggling with how to get their kids into the "best" schools at a price they can afford, he recommends considering test scores, state ratings and the like—but not getting too hung up on enrolling your child in an A+ school at all costs when a B+ school might actually be a better fit, academically and financially.

Source: The Wall Street Journal, view online at Good Schools, Bad Real Estate

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

Rate on 5-year ARM falls to record low

2010-06-20T17:05:00.000-07:00

Interest rates continue to be the best single reason to be in the housing market. Whether you're buying or need to sell, historically low financing is a huge benefit...

Rate on 5-year ARM falls to record low
But mortgage rates' weekly move proves minimal: Freddie Mac
MarketWatch June 18, 2010
By Amy Hoak , Real Estate writer

Mortgage rates changed little this week, but the 5-year adjustable-rate mortgage managed to slide enough to break its record low, according to Freddie Mac's weekly survey of conforming mortgage rates, released on Thursday.

Five-year Treasury-indexed hybrid ARMs averaged 3.89% for the week ended June 17, down from 3.92% last week and 4.97% a year ago. It's the lowest the ARM has been since Freddie Mac started tracking it in January 2005.

One-year Treasury-indexed ARMs also fell, averaging 3.82%, down from 3.91% last week and 4.95% a year ago. It's the lowest that the ARM has been since the week ended May 6, 2004, when it averaged 3.76%.

But fixed-rate mortgages inched up this week, with the 30-year fixed-rate mortgage averaging 4.75%, up from 4.72% last week; it averaged 5.38% a year ago. And the 15-year fixed-rate mortgage averaged 4.20%, up from 4.17% last week; it averaged 4.89% a year ago.

To obtain the rates, the fixed-rate mortgages and the 5-year ARM required payment of an average 0.7 point, while the 1-year ARM required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

"Mortgage rates were little changed this week amid preliminary signs that the expiration of the home-buyer tax credit in April may have led to a slowdown in new construction," said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release.

"Starts on single-family homes fell 17% to an annualized pace of 468,000 units in May from April's 20-month high. In addition, permits on one-unit homes fell to the slowest pace since May 2009," he noted. Read story about housing starts.

"Finally, builders became more pessimistic in their near-term outlook in June, according to the National Association of Home Builders/Wells Fargo Housing," he said. Read about builder pessimism.

But Nothaft added that household balance sheets have been improving over the last year: "In aggregate, households gained $6.3 trillion in net worth in the first quarter from a year ago, according to the Federal Reserve.

"In addition, homeowners have regained $1.1 trillion in home equity over the same time period," he said

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

More on the Home Buyer Tax Credit Deadline Extension

2010-06-20T15:22:00.000-07:00

More details of the extended tax credit for first-time and move-up home buyers deadline that the Senate voted to extend to SEPTEMBER 30, 2010.

As part of its plan to stimulate the U.S. housing market, Congress last fall approved the Extended Home Buyer Tax Credit. This extended the deadline for the First-Time Home Buyer Tax Credit from Nov. 30, 2009, to April 30, 2010, and NOW potentially until SEPTEMBER 30, 2010. It was also expanded it to include repeat buyers.

Home buyers may get more time to claim tax credit
MarketWatch June 18, 2010
By Amy Hoak , Real Estate writer

For some people angling to claim the home-buyer tax credit, hiccups in getting to the closing table are threatening to disqualify them from getting the incentive. But a Senate amendment to the American Jobs and Closing Tax Loopholes Act of 2010 would give them more time to finalize the sale.

To qualify for the credit, buyers had to be under contract for a purchase by April 30. But under current law they have until June 30 to close on the sale.

Under the amendment, they would get an extra three months to close -- useful for those who are experiencing delays in getting their mortgages approved or are somehow being affected by the many other issues that can arise and prevent a closing from occurring on time. The amendment would apply solely to buyers who entered a purchase contract by April 30.

"Because of this program's popularity and the time it takes to complete transactions such as short sales, I led the effort today to extend the closing deadline for this tax credit through September of this year -- allowing lenders more time to clear a backlog of 180,000 potential home buyers nationwide," said Senate Majority Leader Harry Reid, in a news release after the amendment passed in the Senate this week.

Still, the measure is only one part of a wide-ranging jobs and tax bill that still needs to be voted on by both chambers of Congress before it would become law.

Many in the industry are concerned that some buyers won't make the current deadline, especially due to the extra time it takes to get a final mortgage approval these days, combined with the high volume of loan applications in process for purchase and refinance mortgages, due to low interest rates.

According to the National Association of Realtors, as many as one-third of qualified home buyers have been told by their lenders their mortgages won't close before June 30 because of the volume of applications being processed.

"These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a work-flow jam with the lenders or other delays and might not be able to complete the purchase of their homes," said Vicki Cox Golder, NAR's president, in a news release. "Since these applications were already in the pipeline and figured into the program's cost, the extension of the closing deadline should not incur any further government costs."

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

Homebuyer Tax Credits Extended to Sept. 30th

2010-06-16T15:37:00.000-07:00

The Senate on Wednesday approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.

Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation's highest foreclosure rate, and Reid is facing a tough re-election campaign.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.

"If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts," the Realtors said a a letter to lawmakers.

First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.

The $140 million cost of the measure would be financed by denying businesses the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments.

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

South Bay Home Sales/Prices April 2009 to 2010

2010-06-14T10:43:00.000-07:00

No doubt it is difficult to be too serious about the percentage of loss/gain when looking at such a limited number of sales (per city), as one high or low number can dramatically influence the overall. The devil, as they say is in the details…

Below are numbers (from DataQuick) on April 2010 home sales as compared to April 2009. Data includes homes sold and the percentage of change based on median price 2009 vs 2010. Unfortunately there were no numbers in the report for Palos Verdes Estates, Rolling Hills or Rolling Hills Estates.

Entire report at DQNews - California Home Sale Price Medians by County and City, Home Sales Recorded in April 2010

Los Angeles County 6,334 +9.00%

El Segundo 15 +12.46%
Gardena  31 +10.29%
Harbor City 18  +21.20%
Hawthorne 37  +15.24%
Hermosa Bch  18  -26.54%
Lomita  11  -3.87%
Manhattan Bch  40  +11.72%
Rancho PV  39 +4.38%
Redondo Bch  77 +1.98%
Torrance  106 +18.41%

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed.

New location: RE/MAX Palos Verdes (Silver Spur)

2010-06-10T17:15:00.000-07:00

I’ve recently moved from our Redondo Beach office in the Hollywood Riviera to the office on Silver Spur Road across from the Promenade on the Peninsula in Rolling Hill Estates. Due to the recent acquisition by RE/MAX Palos Verdes & Execs of six new RE/MAX offices (Manhattan Beach, El Segundo, Marina Del Rey/Venice, Santa Monica, West LA and Beverly Hills) there been a lot agents moving within our organization and for me this is a far more convenient location.

Updated contact info:

450 Silver Spur Road
Rolling Hills Estates, CA 90274
Direct (310) 703-1848
Cell (310) 750-5751
info@robertdixon.net

Palos Verdes - South Bay: Distressed Sales verses Standard Sales

2010-06-07T10:42:00.000-07:00

156 / 824 - The number Distressed Sales verses Standard Sales closed since January 1, 2010

86 / 715 - The number Distressed Sales verses Standard Sales currently listed (Active) on the MLS

Areas covered: El Segundo, Manhattan Beach, Hermosa Beach, North and South Redondo Beach, Walteria, Hollywood Riviera, West and South Torrance, Southwood and the Palos Verdes Peninsula.

Source: Multiple Listing Service (MLS). Distressed Property defined as properties: In Foreclosure, Notice of Default (NOD), Real Estate Owned (REO), Short Sale or Short Pay or Auction

Palos Verdes Landmarks: The Palos Verdes Beach & Athletic Club

2010-06-06T19:05:00.000-07:00

The Palos Verdes Beach Club

The Palos Verdes Bathhouse and Beach Club opened in June 1930 as part of the Palos Verdes Project. Noted architect, Kirtland Cutter, designed this beautiful landmark on the beach in Malaga Cove. In 1939, the newly incorporated City of Palos Verdes Estates assumed ownership from the Palos Verdes Homes Association.

In 1946, the structure experienced a fire that destroyed the upper levels of the facility. The damage was left un-repaired and ultimately became a serious safety hazard. In 1965, the Palos Verdes Bathhouse and Beach Club was re-named in memory of the City’s first mayor, H.F.B. Roessler, who at the time of his death, was serving his twenty-sixth year in office. In 1988, the City of Palos Verdes Estates was faced with a critical decision - demolition or renovation of the historic facility. Fortunately, a plan was formulated to save the facility. Under the auspices of the City, Palos Verdes Beach and Athletic Club Foundation, nonprofit organization, was formed. The Club was renovated and dedicated in July 1993.

Source: PalosVedres.com

Interest rate lower still...

2010-06-06T11:07:00.000-07:00

Among the list of reasons for buying a home now verses later are historically low interest rates. Even if the market remains somewhat flat or depreciates again, rising interest rates would help to equalize any loss/gain.

How low can they go? 15-year fixed rates set new record

LA Times May 27, 2010

By E. Scott Reckard

Anyone out there still have the old-fashioned notion to retire their mortgage sooner rather than later?

Homeowners able to refinance were finding lenders offering 15-year fixed-rate mortgages at an average of 4.21% this week, according to Freddie Mac -- the lowest rate since the mortgage company started tracking the 15-year loan in 1991.

Heavy demand for 10-year U.S. Treasury bonds has pushed their yield to the lowest level of the year. That's the typical benchmark for fixed mortgages -- and boy have rates followed, with Freddie Mac reporting the average for a 30-year fixed home loan falling to 4.78%.

That's down from 4.84% a week earlier and not far from the record low of 4.71% set back in December.

Since the Freddie Mac survey reflects what lenders are offering, not actual contracts for loans, the rates obtained by well-qualified borrowers are often slightly lower, experts say.

Freddie Mac gathers information about rates available to well-qualified borrowers who make a down payment of at least 20% or have equivalent equity in their homes if they are refinancing. The borrowers in this week's survey would have paid 0.7% of the loan balance to the lenders in upfront fees and discount points, Freddie Mac said.

Last year, the experts expected residential mortgage rates would be rising by now, as federal housing and home-loan support programs expired, home prices stabilized and inflation became more of a concern.

Then the latest default scare reared its head -- this time involving not U.S. home loans but the debt loads carried by Greece and other weaker European economies. And just like that, the flood of money began to the safe haven of debt issued by Uncle Sam.

"Just when we thought we were finally experiencing [the anticipated rate increase] we got the PIGS," said Stew Larsen, head of mortgage banking operations for Bank of the West, referring to an acronym for the nations Portugal, Italy, Greece and Spain.

For those hungry for lower rates, is this the last big chance to head to the trough?

SOLD in May, Palos Verdes - South Bay Beach Cities

2010-06-05T10:42:00.000-07:00

During the month of May 2010

76 The number of residential properties sold on the Palos Verdes Peninsula, 90274 and 90275.

156 The number of residential properties sold in the South Bay Beach Cities, El Segundo, Manhattan Beach, Hermosa Beach, Redondo and Torrance Beach.

South Bay area Real Estate Sales for 2010

2010-05-29T16:12:00.000-07:00

As reported May 18, 2010 on DQNews.com (DataQuick) in Southern California as a whole, homes sales volume dipped slightly last month (see first 3 paragraphs and link to entire report below).

Here in the South Bay sales held steady, significantly ahead of March and April 2009 (see chart below) and the number of pending sales is higher than at any point in the past 18 months. Days on market are down and properties are holding, on average about 95% of their list price (based on 2674 sales in April).

Low interest rates, tax breaks and perceived bargains on homes are still the leading reasons for a percentage of buyers, low interest being the most compelling. Contrary to what many people (not in the market) believe, there are transactions happening. Banks are lending and buyers are closing deals and here locally the majority of properties purchased are not REOs or Short Sales. Of the 416 Single Family Residences, Condominium or Townhomes sold since January 1, 2010 (sample area: Walteria, the Hollywood Riviera, Southwood, West Torrance, North and South Redondo Beach) only 57 were classified as In Foreclosure, Notice of Default, Real Estate Owned or Short Pay.

Southern California home sales dip, median price rises from ’09

Southern California’s housing market leveled off last month as sales activity migrated ever-so-slightly from inland bargain areas toward entry- and mid-market neighborhoods closer to the coast. The overall median price was unchanged from the month before, but it jumped compared with April 2009’s low point, a real estate information service reported.

Sales of new and resale homes totaled 20,299 in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 0.9 percent from 20,476 in March, and down 1.0 percent from 20,514 for April 2009, according to MDA DataQuick of San Diego.

It’s possible that a significant number of sales that would otherwise have closed escrow in April were delayed until May as buyers tried to take advantage of new state tax credits effective May 1. In addition, those who rushed to sign a sales contract last month before the April 30 deadline for a federal home buyer tax credit would likely close escrow in May or June.

This report covers the entire Greater South Bay area. If you are interested in similar information on a more specific segment or multiple areas, please contact me with you needs.

The full report includes charts and data on: the Number of Homes For Sale vs. Sold vs. Pended, Average Price per SQFT, Average Days On Market and Sale Price/Original List Price Percentage, Average Price of For Sale and Sold.

Big Banks want MORE!!!

2010-05-18T10:19:00.000-07:00

Big Banks and Financial Companies, the same institutions that set the stage for our current downturn, got billions in tax-payer bail-outs and are already becoming profitable (while many American’s continue to struggle or worry) would like yet another pound of flesh from those caught in the cross-fire.

It’s important to note that most of the recent and pending foreclosure activity IS NOT subprime, but prime loans and mortgages. These are A-paper borrowers succumbing to extreme economic challenges.

The piece below, from the CALIFORNIA ASSOCIATION OF REALTORS® provides information and background.

When is Enough, Enough?
The Big Banks are Opposing C.A.R.'s Bill to Protect Borrowers

C.A.R. is sponsoring SB 1178 (Corbett) to extend anti-deficiency protections to homeowners who have refinanced "purchase money" loans and are now facing foreclosure. Most homeowners didn't even know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender. SB 1178 will be voted on soon by the entire Senate.

One can't help but think, "when is enough, enough?" Banks have already foreclosed upon a family's home and now lenders can continue to hound them for additional payment. How much more money can today's families afford to pay when they've already lost their homes and most likely their jobs? Are they never to have the opportunity to begin again?

Action Item
Call Senator Rod Wright Today at 1-800-672-3135
Urge him to vote "Yes" on SB 1178.
Non-C.A.R. members enter PIN number -- 182003468

Background

California has protected borrowers from so called "deficiency" liability on their home mortgages since the 1930s, but the evolution of mortgage finance requires the statute to be updated.

Current law says that if a homeowner defaults on a mortgage used to purchase his or her home, the homeowner's liability on the mortgage is limited to the property itself. The law has worked well since the 1930s to protect borrowers, ensure the quality of loan underwriting and allow borrowers who are brought down by financial crisis to get back on their feet.

Unfortunately, the 1930s law does not extend the protection for purchase money mortgages to loans that re-finance the original purchase debt -- even if the re-finance was only to gain a lower interest rate. Recent years of low interest rates have induced tens of thousands of homeowners to re-finance their mortgages, yet almost no one realized that by re-financing their mortgages to obtain a lower rate, they were forfeiting their protections. These borrowers became personally liable for the balance of the loan.

C.A.R. is Sponsoring SB 1178 Because:

SB 1178 is fair. Home buyers, and lenders, entered into the purchase with the idea that the mortgage would be non-recourse debt, and that the lender would look to the security (the house) itself to make good on the debt if the borrower cannot. It meets the legitimate expectation of the borrowers, who have no idea that they are losing this protection by a re-finance. Homeowners didn't know that their re-finance exposed them to personal liability, and new tax liability, on the note. It would be unfair to allow a lender, or someone that has purchased a note from a lender, to pursue the borrower beyond the value of the agreed upon security.

SB 1178 is consistent with the intent of the orginal law and simply updates it for modern times. Current law was intended to ensure that if someone lost their home to foreclosure, they wouldn't be liable for additional payment. Since the law was passed over 70 years ago, homeowners re-financing from the original loan to lower their interest rate has become commonplace. The 1930s legislature didn't anticipate how mortgages would change over time.

Lenders could pursue families to collect this "deficiency" debt years down the road. Under current law, lenders have up ten years to collect on the additional debt after a judgment has been entered on the foreclosure. Years after a family has lost their home, they could find themselves in even more financial trouble. Lenders could even sell these accounts to aggressive collection agencies or even bundle them into securities. The end result would be banks who didn't lend responsibly in the first place coming after families for even more money that they don't have.

SB 1178 does NOT apply to "cash-out" re-finances, unless the money was used to improve the home and it doesn't apply to HELOCs.

California Foreclosure Activity Declines in Q1 2010

2010-04-22T17:16:00.000-07:00

California Foreclosure Activity Declines Again
April 20, 2010

Lending institutions started formal foreclosure proceedings on fewer California homes last quarter. It is unclear how much of the drop can be attributed to shifts in market conditions, and how much is because of changing policies, a real estate information service reported.

A total of 81,054 Notices of Default ("NODs") were recorded at county recorder offices during the January-to-March period. That was down 4.2 percent from 84,568 for the prior quarter, and down 40.2 percent from 135,431 in first-quarter 2009, according to San Diego-based MDA DataQuick.

The year-ago number is the highest in DataQuick's statistics, which go back to 1992 for NODs. The quarterly average is 44,041, while the low of recent years was 12,417 in third-quarter 2004, when housing market annual appreciation rates were around 20 percent.

"Several factors are at play here and it's hard to know how they play into each other right now. A year-and-a-half ago the subprime loan mess was the black hole. Now, playing catch-up, is the financial distress households are experiencing because of the recession. Add to the mix shifting policy decisions, both by lending institutions and in public policy," said John Walsh, DataQuick president.

"We are seeing signs that the worst may be over in the hard-hit entry-level markets, while problems are slowly spreading to more expensive neighborhoods. We're also seeing some lenders become more accommodating to work-outs or short sales, while others appear to be getting stricter about delinquencies. It's very noisy out there," Walsh said.

The state's most affordable sub-markets, which represent 25 percent of the state's housing stock, accounted for 47.5 percent of all default activity a year ago. In first-quarter 2010 that fell to 40.9 percent.

California's mid- to high-end housing markets were more likely to have seen a rise in mortgage defaults last quarter, though the concentration of default activity - measured by defaults per 1,000 homes - remained relatively low in those areas.

For example, zip codes statewide with median home sale prices of $500,000-plus saw mortgage defaults buck the overall trend and rise 1.5 percent last quarter compared with the prior quarter, while year-over-year the decline was 19 percent (versus a 40.2 percent marketwide annual decrease). Collectively, these zips saw 4.5 default notices filed for every 1,000 homes in the community, compared with the overall market's rate of 9.3 NODs for every 1,000 homes statewide.

In zip codes with medians below $500,000, mortgage default filings fell 5.8 percent from the prior quarter and declined nearly 43 percent from a year earlier. However, collectively these zips saw 10.5 NODs filed for every 1,000 homes - more than double the default rate for the zips with $500,000-plus medians.

On primary mortgages, California homeowners were a median five months behind on their payments when the lender filed the NOD. The borrowers owed a median $14,066 in back payments on a median $330,147 mortgage.

On home equity loans and lines of credit in default, borrowers owed a median $3,897 on a median $64,422 credit line. However the amount of the credit line that was actually in use cannot be determined from public records.

While many of the loans that went into default during first-quarter 2010 were originated in early 2007, the median origination month for last quarter's defaulted loans was July 2006, the same month as during the prior four quarters.

San Diego-based MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Notices of Default are recorded at county recorders offices and mark the first step of the formal foreclosure process.

Although 81,054 default notices were filed last quarter, they involved 79,457 homes because some borrowers were in default on multiple loans (e.g. a primary mortgage and a line of credit). Multiple default recordings on the same home are trending down, DataQuick reported.

Following a historical pattern, mortgages were least likely to go into default in Marin, San Francisco and San Mateo counties. The probability was highest in Merced, Stanislaus and San Joaquin counties.

The number of Trustees Deeds (TDs) recorded, which reflect the number of houses or condo units lost to the foreclosure process, totaled 42,857 during the first quarter. That was down 16.1 percent from 51,060 for the prior quarter, and down 1.7 percent from 43,620 for first-quarter 2009. The all-time peak was 79,511 in third-quarter 2008.

In the last real estate cycle, Trustees Deeds peaked at 15,418 in third-quarter 1996. The state's all-time low was 637 in the second quarter of 2005, MDA DataQuick reported.

There are 8.5 million houses and condos in California.

On average, homes foreclosed on last quarter spent 7.5 months winding their way through the formal foreclosure process, beginning with an NOD. A year ago it was 6.8 months. The increase could reflect, among other things, lender backlogs and extra time needed to pursue possible loan modifications and short sales.

Foreclosure resales accounted for 42.6 percent of all California resale activity last quarter. It was up from a revised 40.6 percent the prior quarter, and down from 57.8 percent a year ago, the peak. Foreclosure resales varied significantly by county last quarter, from 13.8 percent in San Francisco to 67.7 percent in Merced.

At formal foreclosure auctions last quarter, an estimated 24.6 percent of foreclosed properties went to investors and others who do not appear to be lender or government entities. That's up from an estimated 17.6 percent a year ago.

The lenders that originated the most loans that went into default last quarter were Countrywide (7,282), World Savings (6,459), Washington Mutual (6,371), Wells Fargo (5,204) and Bank of America (3,851). These were also the most active lenders in the second half of 2006, and their default rates were well below 10 percent.

Smaller subprime lenders had far higher default rates for that period: ResMAE Mortgage, Ownit Mortgage, Master Financial, First NLC Financial Services and Fieldstone Mortgage all had default rates of more than 65 percent of the loans they originated in the second half of 2006. These and most other subprime lenders are long gone.

Most of the loans made in 2006 are owned or serviced by institutions other than those that made the loans. The servicers pursuing the highest number of defaults last quarter were ReconTrust Co., Cal-Western Reconveyance and NDEx West, MDA DataQuick reported.

Notices of Default (first step in foreclosure process)
houses and condos

Trustees Deeds Recorded (signal homes were lost to foreclosure)
houses and condos

Source: DQNews.com (DataQuick Information Systems)

Southern California Home Sales for March 2010

2010-04-22T08:17:00.000-07:00

More Incremental Gains for Southland Real Estate Market

April 13, 2010

Home sales and prices continued their steady but pokey climb up from the bottom in Southern California last month as buyers scrambled to take advantage of low prices and low mortgage interest rates. The market is still tilted toward low-cost distress sales, but not by as much as previously, a real estate information service reported.

A total of 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 33.3 percent from 15,359 in February, and up 5.0 percent from 19,506 in March 2009, according to MDA DataQuick of San Diego.

Sales always go up from February to March. Last month was the 21st in a row with a year-over-year sales increase. The March sales average is 24,936 going back to 1988, when DataQuick’s statistics begin.

“It’s a reflection of just how grim things got, that we’ve now had almost two years of sales gains and we’re still 18 percent below the sales average. The market won’t rebalance until mortgage lending patterns normalize, and that’s just not happening yet. Some of the best deals out there right now are happening when the buyer comes in with cash,” said John Walsh, MDA DataQuick president.

The median price paid for a Southland home was $285,000 last month, up 3.6 percent from $275,000 in February, and up 14.0 percent from $250,000 for March 2009.

The median peaked at $505,000 in mid 2007 and appears, so far, to have bottomed out at $247,000 in April last year. The peak-to-trough drop in the median was due to a decline in home values as well as a shift in sales toward low-cost homes, especially foreclosures.

Foreclosure resales accounted for 38.4 percent of the resale market last month, down from 42.3 percent in February, and down from 54.8 percent a year ago. The all-time high was in February 2009 at 56.7 percent.

As sales of lower-cost foreclosure properties have waned over the past year, activity has picked up from very low levels in many high-end areas. Last month sales of homes priced at $500,000 or more made up 19.4 percent of all Southland transactions, compared with 18.5 percent in February and 14.9 percent in March 2009. Over the past five years, $500,000-plus deals averaged 35 percent of monthly sales, while over the past 10 years they averaged 26 percent of all transactions.

Higher-end sales are still hampered by the troubled jumbo loan market, which has improved only modestly over the past year. Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 15.7 percent of last month’s purchase lending, up from 14.8 percent in February and from 10.5 percent in March 2009. However, before the credit crisis in the fall of 2007, jumbos accounted for 40 percent of the market.

Adjustable-rate mortgages (ARMs) haven’t come close to recovering from the credit crunch, either. While 44.6 percent of all Southland purchase mortgages since 2000 have been ARMs, last month they represented just 4.8 percent, up from 4.0 percent in February and 2.1 percent in March last year.

Meanwhile, Uncle Sam continues to prop up lending for many low-to mid-priced homes. Government-insured FHA loans, a popular choice among first-time buyers, accounted for 38.6 percent of all mortgages used to purchase Southland homes in March.

Absentee buyers – mostly investors and some second-home purchasers – bought 21.3 percent of the homes sold in March.

Buyers who appeared to have paid all cash – meaning there was no indication that a corresponding purchase loan was recorded – accounted for 27.1 percent of March sales. In February it was a revised 30.0 percent – an all-time high. The 22-year monthly average for Southland homes purchased with cash is 13.8 percent.

The “flipping” of homes has also trended higher the past year, though it eased a bit in March. Last month the percentage of Southland homes flipped – bought and re-sold – within a three-week to six-month period was 3.2 percent of total sales, down from 3.5 percent in February but up from 1.6 percent a year ago. Last month flipping varied from as little as 2.6 percent of total sales in Riverside County to as much as 3.9 percent in Los Angeles County.

MDA DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $1,220 last month, up from $1,180 for February, and up from $1,074 for March a year ago. Adjusted for inflation, current payments are 45.2 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They were 55.1 percent below the current cycle’s peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but is lower than peak levels reached over the last two years. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above-average, MDA DataQuick reported.

Source: DQNews.com (DataQuick Information Systems)

Gov. Arnold Schwarzenegger waives state taxes on mortgage debt forgiven in a foreclosure or short sale

2010-04-21T19:34:00.000-07:00

There’s good news for thousands of California taxpayers who sell homes at a loss, a practice known as a short sale. A measure (SB 401) signed last week by Gov. Arnold Schwarzenegger waives state taxes on mortgage debt forgiven in a foreclosure or short sale.

The federal liability waiver for mortgage debt relief is still in place, but the state waiver was set to expire at the end of 2008. The new state provision applies to mortgage debt forgiven by lenders during tax years 2007 to 2012.

Without the tax shelter, the difference between the mortgage debt and sale price on a short sale becomes taxable income. So a state earner making $65,000 who sold a home at a $100,000 loss would be responsible for taxable income of $165,000.

On April 5, the Obama administration expanded the existing Home Affordable Modification Program to include new federal guidelines and incentives for lenders and qualified borrowers. The new Home Affordable Foreclosure Alternatives program helps eligible homeowners avoid foreclosure by providing options for short sales or deeds-in-lieu of foreclosure.

Borrowers are required to be owner-occupants of the principal residence, show financial hardship and have a first lien mortgage originated on or before Jan. 1, 2009 with a principal balance that does not exceed $729,750. In addition, the borrower’s total monthly mortgage payment must be greater than 31% of his or her monthly gross income.

Under the new HAFA program, borrowers can get up to $3,000 in relocation assistance. Service providers can get $1,500 for administrative and processing costs. Forgiven debt that does not exceed the debt used for acquisition, construction or rehabilitation of a principal residence is not taxed as income. (Make sure that you check these guidelines with a tax advisor or the IRS.)

If the home remains unsold despite a good-faith effort by the owner, the lender may accept a title transfer and release the borrower from the debt and further claims through a deed-in-lieu of foreclosure. For more information about HAMP programs, visit Making Home Affordable.gov or call (888) 995-4673.

Source: LA Times, Money & Company, On the Market: Short sales

Citi Reports Profit of $4.4 Billion

2010-04-19T07:58:00.000-07:00

"After 2 Years of Losses, Citi Reports Profit of $4.4 Billion. Losses in Citigroup’s domestic mortgages and credit units however continued to mount — Citigroup Holding, which contains the bulk of most-troubled mortgage and credit card assets along with businesses marked for sale, lost $876 million."

The piece goes on to say that the government may soon be selling it's ownership in the company, some 7.7 billion shares...

After 2 Years of Losses, Citi Reports Profit of $4.4 Billion
New York Times by ERIC DASH
April 19, 2010

After nearly two years of being drenched in red ink, Citigroup provided the strongest signs yet that the troubled bank is beginning to recover as it reported a $4.4 billion profit in the first quarter.

The earnings, which handily beat analyst expectations and were the bank’s best since the financial crisis began, were the result of the resurgence in the bond market and improvements in the economy, particularly overseas. Both play to Citigroup’s strengths as a major player in fixed income and emerging markets, and come as some of its rivals benefited from similar trends. JPMorgan Chase and Bank of America both reported big first-quarter earnings from hefty trading profits and from adding less money to their loan loss reserves.

Full article at NYTimes.com

PVUSD sues Palos Verdes Homes Association & City of PVE

2010-04-16T20:55:00.000-07:00

The Palos Verdes Peninsula Unified School District has filed a lawsuit against the Palos Verdes Homes Association, as well as the city of Palos Verdes Estates, regarding deed restrictions to an undeveloped property at Palos Verdes Drive West and Via Pacheco in PVE. The deed restriction, made in 1938, prevents the sell and development of the lots if they are not used for school purposes.

Today I received an email (below the PV News piece) through Edline, a communication conduit used between teaches, students and parents which favors the district position, names names and I fear seeks to rabble rouse...

Maybe I'm not supposed to express an opinion about such things, but this is flat out nuts!

Regardless of whether the District should or should not have the right to sell, is this really the time to be spending money to litigate? If PVUSD were my client, expressing interest in selling undeveloped land I'd probably say "do you really need to?" This is not a good time to sell and the school district shouldn't be wasting resources on a win/lose scenario. In the end they’d need to dramatically wholesale the property for a developer to even consider coming to the table.

School District sues over rights to property
By Mary Scott, Peninsula News
April 8, 2010

A dispute about two undeveloped properties, known as Lots C and D, between the Palos Verdes Peninsula Unified School District and the Palos Verdes Homes Association has prompted the School District to file a lawsuit against the association, as well as the city of Palos Verdes Estates, in the Los Angeles Superior Court.

The lots, located in a residential neighborhood between Palos Verdes Drive West and Via Pacheco in PVE, was given to the district’s predecessors by the city and the Homes Association in 1938, according to Superintendent Walker Williams.

The property was handed over, but with restrictions. The deed restriction prevents the sell and development of the lots if they are not used for school purposes.

When the News contacted the Homes Association regarding the lawsuit, the newspaper was told the group had been advised by legal counsel not to comment on the case at this time.

“It’s been a dispute about how this property can or cannot be used for many years,” Williams said. “And we haven’t been able to work it out where we get together and say, ‘OK, do we all agree?’

“We’re hoping that a judge can look at both sides, both arguments and make a determination,” he continued. “Either we’re right or we’re not.”

Williams said the School District owns the lots, although the district never has used them.

“It’s one of the few district properties that we own that is not being used for something right now,” he said.

The School District would like to the explore the possibility of selling the lots, which would be one source of revenue to finish its construction and modernization projects, such as playground renovations, physical education facilities, and the replacement of deteriorated fences and asphalt and concrete surfaces.

However, the properties cannot be sold until the deed restrictions are lifted and the properties are “appropriately rezoned,” Williams said.

The lots currently are zoned as Class F, he added, meaning they can be used for schools, playgrounds, parks, public art galleries, museums or a single-family dwelling.

The superintendent said the district has made attempts to resolve the issue with the association since 2008. But the topic has been ongoing at Board of Education meetings, both in closed and open sessions, as far back as 2005.

“There are [records of] meetings in 2005 with a different Board of Education, directing then-Superintendent Dr. Ira Toibin to try to find out how to sell this property … They were directing Ira to try to sell this property,” Williams said.

As to whether the district agreed upon a lawsuit under “a cloak of secrecy,” as stated in the Concerned Citizens for Peninsula Conservation’s ad in last Thursday’s issue of the News, Williams responded that the vote did take place in a closed session.

“Decisions related to litigation or existing litigation can be decided in a closed session agenda, and so that’s where it took place. It’s not illegal,” he said.

The decision to move forward with the lawsuit, which was voted on at the Jan. 28 board meeting and later reported to the public in open session, is an attempt to resolve the deed restrictions only. The district and the board have not made a decision to sell the property.

“We’ve tried to reach resolution on it, we tried mediation and nothing has worked,” Williams said. “This is where we’re at, at this time.

“Even if a judge rules in our favor, no decision to sell the property has been made,” he continued. “That would be another decision later on.”

There is a process with the state that the district would have to go through before it could do so.

“Really, once and for all, make a decision about what our rights are to the property. We believe we have rights to them; others disagree with us,” Williams said.

From: PV Schools
To: Undisclosed Recipients
Sent: Fri, April 16, 2010 3:35:28 PM
Subject: Update on District Owned Vacant Lots in City of PVE

Palos Verdes Peninsula Unified School District
April 16, 2010

For many years, the School District has owned two dirt lots between Palos Verdes Drive West and Via Pacheco, known as Lots C & D. The unimproved lots are located in a residential neighborhood. This is a separate and distinct property from the district owned land where the Lunada Bay Little League field is located. Lots C & D are not “open space” property; they belong to the District, and until they are sold, the District is free to use them for any District purpose.

The discussion about whether or not the District should sell Lots C & D, or use it for other purposes, has been going on for many years. Prior school boards, along with the present one, have discussed the potential sale of lots C & D as a possible source of revenue to the District. In fact, as recently as 2005, the school board had the foresight to vote 5-0 to sell the lots. At that time the Board consisted of Gabriella Holt, who is now on the board of the PV Homes Association, Ellen Perkins, who is now on the PVE City Council, Barbara Lucky, Dora de la Rosa, and Dave Tomblin.

District leaders promised during the campaigns for Measures K, R, & S (construction bonds) that they would not place the entire burden of paying for the projects listed in the Facilities Master Plan on the taxpayers. In fact, District leaders promised that they would evaluate ALL other possible sources of revenue in order complete projects that would benefit students throughout the community. If Lots C & D were sold in the future, the proceeds would go towards completing projects on the Facilities Master Plan or other identified construction, modernization, and/or safety needs.

The Homes Association’s CC&R’s applicable to the Property currently allow the property to be used for construction of single family residences. It is the antiquated deed restrictions that are the issue between the Association and the District, not the CC&R’s.

The legal dispute centers on the right of the District to sell the property if it wishes. Realistically, the property cannot be sold unless the deed restrictions are removed and the property is appropriately rezoned. For many years, the District has attempted to persuade the Association to remove the deed restrictions. The District believes that the deed restrictions on the property are no longer enforceable. In an effort to resolve these issues, the District initiated mediation in order to avoid litigation. In fact, mediation was begun between the school district and the homes association in November 2008 in an attempt to amicably resolve the dispute and avoid legal action. No agreement could be reached between the parties. While the representatives of the Homes Association were sympathetic to the District’s financial plight, they were unwilling to voluntarily waive the deed restrictions. At this point, the District and Homes Association invited the City to join the mediation, but the city declined to participate.

When mediation failed, and faced with no other options, the District initiated legal action. The Court has been asked to determine if the deed restrictions are, as the District contends, unenforceable. If the District prevails, the court will remove the deed restrictions. The District will then have clear title to the property.

The property will also need to be rezoned and subdivided into four lots. Although the City has zoning and subdivision control over the property, the District contends that California law requires the City, upon the District’s request, to rezone the property to allow single family residences and to allow the two lots to be separated into four lots, the same size as the neighboring residential lots. Although the City has been added to the lawsuit, the District continues to discuss land use issues with the City and hopes to be able to resolve these issues without a trial.

The District believes its legal position is strong and that the lots can ultimately be sold for between $2-4 million. The school board believes that investing in a legal determination once and for all in order to generate maximum revenue for the benefit of its students is fiscally prudent and the only responsible thing to do.

Realty Check: Televison Hit Show 'Extreme Makeover' Downsizes

2010-04-16T09:32:00.000-07:00

Interesting, mostly due to the television aspect... In my mind dealing with smaller homes should have broader appeal.

Realty Check: 'Extreme Makeover' Downsizes Its Dream Homes
Producers of Hit TV Show See Bad Loans, Dashed Dreams, Default
The Wall Street Journal
April 6, 2010

The house at 10512 Baldy Mountain Rd. in Sandpoint, Idaho, looks like just another vacant foreclosed home. Some appliances, a bathroom mirror and even the hot tub are missing. The dining room of the three-bedroom house has water damage.

But this isn't your run-of-the-mill problem house. Call it an Extreme Foreclosure. The 3,678-square-foot McMansion is a product of the popular "Extreme Makeover: Home Edition" reality television show. It isn't the only "Extreme" home to fall on hard times.

Each week, an average 9.4 million viewers tune in to ABC-TV for what, over seven seasons, has become a classic formula: Find a struggling family with a heart-tugging story and send them on vacation as an army of volunteers work frantically to replace an existing home with a much nicer and bigger one in just 106 hours. Each episode ends with a dramatic tear-filled tour of the new home, packed with donated furnishings, and outsize extras like a carousel or bowling lanes.

But after the cameras have gone, another trend has been developing: Homeowners struggle to keep up with their expensive new digs. In many cases, the bigger, more lavish homes have come with bigger, more lavish utility bills. And bigger tax assessments. Some homeowners have tapped the equity of their super-sized homes only to fall behind on the higher mortgage payments.

The show's producers say they are aware of the problem and are making changes appropriate to current economic reality: downsizing.

Back in the boom, the makeovers got a little out of hand because of competition among home builders aware of the free publicity that came with the show and who tried to outdo previous projects. These days, the show is backing away from the boom-era showpieces. We "scaled back," says Conrad Ricketts, an executive producer for the show created and produced by Endemol USA.

The average size of current makeovers is 2,800 to 3,000 square feet. A 2005 episode featured a house in Lake City, Ga., that became a 5,300-square-foot English castle boasting five bedrooms, seven bathrooms, five fireplaces and an outdoor kitchen. These days, the houses appear more subdued, eschewing over-the-top amenities.

A swimming pool is no longer a must, unless it could be used for therapy. When pools are built, the show explores a well system to help reduce water usage and costs. Lavish landscaping is out, working with the local environment is in. "We're not going to New Mexico, the desert, and trying to put sod down," Mr. Ricketts says.

Tracy Hutson, an interior designer who has been with "Extreme Makeover" since the beginning, says homes are receiving more earth-friendly products, such as low water-flow toilets and solar panels, curbing the giant electricity bills that caused a hardship for some families. "I think our hearts were in the right place, but we just got carried way," says Ms. Hutson. "It can be extreme without being the biggest house you've ever seen."

Back in 2003, the 59-year-old Mr. Ricketts, who has worked in movies and TV for nearly three decades, was looking to develop a home-remodeling series. As he traveled down a "nice street" in Santa Clarita, Calif., he came upon a broken-down house that didn't seem to fit in. He learned the family had a child battling leukemia, leaving little money for maintenance. "I knew at that moment it was the soul of the TV show," Mr. Ricketts recalls.

The California family's home was remodeled for the first episode airing later that year. But soon, remodeling gave way to razing and rebuilding houses, making for more dramatic television during the housing boom. As the show became more popular, donations flowed and builders got more and more ambitious.

It has since become part of pop culture, and, while plenty of makeover shows have come and gone, it remains the most ambitious, well-known and generous of the genre.

It's also important to ABC when it comes to ratings and selling ads: Among broadcast networks, the show ranks second in the key female demographics and tops with children ages 2 to 11.

Huber Engineered Woods LLC has donated its premium floor, wall and roof products for 25 houses. While TV viewers don't always see the brand, "connecting with builders and framers on job sites" has led to increased awareness and additional sales, says Matt O'Brien, vice president of commercial operations.

For many families featured on the program, the Extreme Makeover experience has been a dream come true. But for some, the experience has been financially stressful.

Several owners have sought loan modifications to reduce their payments in order to stay in their homes, lenders say. Some families seek a quick-fix by trying to sell. But because Extreme Makeovers tend to be big, fancy residences plopped into working-class or rural communities, the houses can be a hard sell.

The house in Sandpoint, which was owned by Eric Hebert, appears to be the first Extreme Makeover home to actually fall into foreclosure, in October. Mr. Hebert did not answer requests for comment. But he told a local television station last year that "the biggest mistake I think that I made was I took too much money out on the house thinking that I was going to have a job, you know, in the future."

Source: WSJ.com

CALIFORNIA'S TAX CREDIT MONIES MAY GO FAST

2010-04-15T16:43:00.000-07:00

The $100 million allocated for California's first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.'s Economics team. California's Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied. However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis.

C.A.R.'s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters. It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit. If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above.

Applications for the California tax credit must be faxed to the FTB after escrow closes. The FTB will update its website when the 2010 application form and other information become availablee.
REALTORS® are reminded not to give their clients any tax or legal advice, such as the availability of funds under the California tax credit program. Agents should encourage their clients to seek specific advice from an accountant, attorney, or other professional as they deem appropriate.

For more information, please refer to C.A.R.'s Homebuyer Tax Credit Chart 2010.

Foreclosure activity for Q1 in 2010

2010-04-15T08:35:00.000-07:00

"Foreclosure activity in California fell 6.4 percent from the same time last year, but rose 4.7 percent from the fourth quarter, giving the state the fourth-highest foreclosure rate. One in every 62 units got a filing."

I realize that this is not what a lot of you what to see... however I post these reports for several reasons not the least of which is that there are those who choose to fan the flames stating this is a recovery. Isn’t that the approach that got us into this mess? I tend to want to paint a clearer picture. I want my clients, whether buying or selling to be thoroughly aware of the environment in which they venture. Yes, there’s been a spike in activity and this activity can potentially continue, providing that financing remains available. It’s predicted, however that roughly 50% of the real estate sales volume in 2010 will involve distressed property and the numbers indicate that there will be plenty of inventory available.

An estimated 3.2% of all loans are in foreclosure with an additional 10% being more than 60 days late. With the more recent activity involving prime loan (as opposed to the wave of sub-prime failures last year) this is not just a matter of irresponsible buyers and lenders.

Where the topic of California’s part is concerned, it’s common to hear that we’re not really touched in the South Bay. A quick search of Redondo Beach, Hermosa Beach, Manhattan Beach and the Palos Verdes Peninsula produces 603 properties in some stage of foreclosure.

For many homeowners foreclosure is not the only option. Losing a home is a devastating reality; however a loan modification or short sale, when possible is far better than allowing a home to go back to the bank and new government guidelines through HAFA (part of HAMP) seek to streamline the process. If you are a homeowner with a legitimate hardship you need to understand your options and act immediately.

If you or someone you know is concerned about whether they will be able to keep their home or have already received a notice of default do not wait.

Call for additional information and guidance at (310) 750-5751

Foreclosure activity escalates in Q1
Utah's foreclosure rate soars
By Inman News, Thursday, April 15, 2010.

Properties receiving foreclosure filings jumped 16 percent in the first quarter compared to the same period last year, according to a quarterly report by foreclosure data site RealtyTrac.

Filings -- default notices, scheduled auctions and bank repossessions -- went to 932,234 properties, a 7 percent surge from the fourth quarter. That means 1 in every 138 housing units in the country received a foreclosure filing, the report said.

March saw the biggest monthly total since RealtyTrac's first U.S. Foreclosure Market Report in January 2005: 367,056 properties posted filings in March -- 39.4 percent of total for the first quarter.

"Foreclosure activity in the first quarter of 2010 followed a very similar pattern to what we saw in the first quarter of 2009: a shallow trough in January and February followed by a substantial spike in March," said James J. Saccacio, RealtyTrac's CEO.

"One difference, however, is that the increases were more tilted toward the final stage of foreclosure, with REOs increasing 9 percent on a quarterly basis in the first quarter of 2010 compared to a 13 percent quarterly decrease in REOs in the first quarter of 2009."

With a total of 257,944 properties repossessed by the lender during the quarter, REOs hit a record-high total, the report said, and REOs soared 35 percent compared to the same period last year.

"This subtle shift in the numbers ... may be further evidence that lenders are starting to make a dent in the backlog of distressed inventory that has built up over the last year as foreclosure prevention programs and processing delays slowed down the normal foreclosure timeline," Saccacio said.

At 369,491, scheduled auctions during the first quarter also hit a record high, rising 21 percent quarter-over-quarter and 12 percent from the fourth quarter.

The number of properties receiving default notices was mostly flat, rising 1 percent to 304,799 quarter-over-quarter and falling 1 percent from the previous quarter. They peaked in the third quarter of last year at more than 342,000, the report said.

More than 70 percent of the nation's first-quarter foreclosure activity was concentrated 10 states, the report said. California had the nation's highest total of properties receiving foreclosure filings: 216,263, or 23 percent of all activity.

Next came Florida, with 153,540 properties receiving a filing, followed by Arizona (55,686), Illinois (45,780), Michigan (45,732), Georgia (39,911), Texas (37,354), Nevada (34,557), Ohio (33,221) and Colorado (16,023), the report said.

The number of properties in Nevada receiving a foreclosure filing fell 16 percent from 2009's first quarter, but rose 15 percent from the fourth quarter.

According to RealtyTrac, Nevada has been contending with the nation's highest foreclosure rate for the past 13 quarters. A staggering 1 in 33 housing units received a foreclosure filing in the first quarter, four times the national average, the report said.

For the third straight quarter, Arizona posted the nation's second-highest rate with one in every 49 properties receiving a foreclosure filing, the report said. The state's foreclosure rate rose 13.8 percent quarter-over-quarter and 22.4 percent from the previous quarter.

Florida registered the third-highest foreclosure rate in the nation for the second straight month. One in every 57 properties got a filing, increasing 28.8 percent quarter-over-quarter and 7 percent from the previous quarter.

Foreclosure activity in California fell 6.4 percent from the same time last year, but rose 4.7 percent from the fourth quarter, giving the state the fourth-highest foreclosure rate. One in every 62 units got a filing.

Utah had the fifth-highest rate -- 1 in every 88 housing units had a foreclosure filing. There, foreclosure activity skyrocketed a whopping 75.1 percent from the same quarter last year and 21.2 percent from the fourth quarter.

Michigan, Georgia, Idaho, Illinois and Colorado rounded out the states with the top 10 foreclosure rates.

RealtyTrac bases its foreclosure reports on foreclosure filing data from 2,200 counties across the country, accounting for more than 90 percent of the American population.

Source: Inman News

Mortgage Market Review, April 2, 2010

2010-04-02T10:08:00.000-07:00

Market Comment

Mortgage bond prices fell again last week pushing mortgage interest rates higher. The Fed ended the mortgage backed securities purchase program last Wednesday. There was no coincidence that rates spiked higher Thursday morning with the Fed no longer there to buffer negative movements and keep rates in check. Stock strength also pressured bonds as the Dow approached the 11,000 mark. Escalating oil prices also caused rates to spike higher as inflation fears begin to increase. Fortunately the PCE Price Index data came in as expected. Rates rose about 3/4 of a discount point for the week.

The Treasury auctions will once again take center stage this week. If foreign demand is lackluster like the last few auctions we could see that carry over to the mortgage bond market causing rates to spike. The Fed minutes and weekly jobless claims may also move the market this week.

April 6

3-year Treasury Note Auction: (important) $40 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.

Fed Minutes: (important) Details of last Fed meeting. Volatility may surround the release.

April 7

Consumer Credit: consensus estimate up $1.6 billion (low importance) A significantly larger than expected increase may lead to lower mortgage interest rates.

10-year Treasury Note Auction: (important) $21 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.

April 8

Weekly Jobless Claims: consensus estimate at 430k (moderately important) An indication unemployment. Higher claims may lead to lower rates.

30-year Treasury Bond Auction: (important) $13 billion of bonds will be auctioned. Strong demand may lead to lower mortgage rates.

Treasuries

The 10 and 30-year Treasury bond yields are often viewed as "benchmarks", reflecting the overall state of interest rates in the US economy. Many people concerned about mortgage interest rates track these bonds as a barometer for mortgage interest rates. However, in reality the Treasury and mortgage markets trade independently.

The supply and demand characteristics of Treasury bonds and mortgage-backed securities (MBSs) differ. Treasury securities represent money needed to fund the operations of the US government. MBSs, on the other hand, represent borrowing by homeowners. Demand for mortgage credit is seasonal and is also affected by the state of the overall economy. In terms of demand, Treasury securities are regarded as "risk free" investments, and often benefit from a "flight to quality" in times of financial crisis. Treasury bill, note, and bond prices are dictated by yield requirements and inflationary concerns. Because homeowners can sell or refinance their homes, investors in 30-year mortgage-backed securities usually see principal repayment in significantly shorter periods of time.

In the absence of information directly related to the mortgage interest rate markets, Treasury information can be useful. However, mortgage interest rates can vary significantly. In fact, many times the Treasuries will trade wildly while MBSs only see minor price changes and vice versa.

Source:

Andrew Martz
Mortgage Loan Consultant
The Shintani Group
27 Malaga Cove Plaza, Ste A
Palos Verdes Estates, CA 90274
License # 01418195
andrew@shintanigroup.com
http://www.shintanigroup.com/
(310) 378-8212

Copyright 2010. All Rights Reserved. Mortgage Market Information Services, Inc. http://www.ratelink.com/ The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

SHORT SALES: Home Affordable Foreclosure Alternatives Program (HAFA)

2010-04-01T14:50:00.000-07:00

Distressed Properties are expected to comprise 50% of the U.S. market transactions this year

New government guidelines designed to streamline the Short Sale process go into effect April 5th. All HAMP lenders and real estate agents working in the rapidly expanding Short Sales market MUST be familiar with these new guidelines. The new program is called HAFA: The Home Affordable Foreclosure Alternative program

According to the National Association of REALTORS®, Short Sales and Foreclosures (REO's) are the new traditional transaction and as part of my standard real estate business I specialize in helping distressed homeowners’ determine their options. To this end, I am certified by the NAR through their SFR (Short Sale and Foreclosure Resource Certification) program.

Home Affordable Foreclosure Alternatives Program (HAFA)

In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program takes effect on April 5, 2010—although some servicers may implement it sooner, if they meet certain requirement--and sunsets on December 31, 2012.

Home Affordable Foreclosures Alternatives Program: Guidelines and Forms

HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA.

A list of servicers participating in HAMP (including HAFA) is available at: Making Home Affordable

HAFA Provisions

•• Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.

•• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.

•• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).

•• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).

•• Uses standard processes, documents, and timeframes/deadlines.

•• Provides the following financial incentives:

•• $3,000 for borrower relocation assistance;

•• $1,500 for servicers to cover administrative and processing costs;

•• Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.

•• Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

Source: National Association of REALTORS®

$18,000 in Combined Homebuyer Tax Credits

2010-03-31T14:29:00.001-07:00

CALIFORNIA COMBINED HOMEBUYER TAX CREDITS

Available for a Limited Time

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.

Governor signs home tax credit bill

2010-03-25T18:29:00.000-07:00

Governor Schwarzenegger today signed AB 183 providing $200 million for home buyer tax credits. The bill allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

Eligible taxpayers who close escrow on qualified principal residences between May 1, 2010 and December, 31, 2010, or who close escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.

This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under the bill, purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state). Buyers also must be at least 18 years old and be unrelated to the seller. First-time buyers are defined as those who have not owned a home in the past three years.

See AB 183 here

Must-do Home Cleaning & Maintenance

2010-03-18T10:41:00.000-07:00

Spring is upon us, or so it would seem and with the fairer weather comes the urge to clean-up, air out and organize... Following is a list of Must-Do items to add to your regimen.

Whereas you may be comfortable doing some work yourself, other items require the expertise of a licensed professional (e.g. general contractor, plumber, electrician or HVAC contractor etc.). One great way to stay on top of home maintenance is to have regular inspections (minimum twice annually) by a licensed general contractor who offers home maintenance or handyman services. He or she will either be knowledgeable enough to address your issues or recommend that a specialist be brought in to evaluate the problem. Always be sure that every contractor is licensed and insured before any work begins.

If you need a good general contractor/handyman, I recommend South Bay Home Services. Jim Scira is clean, meticulous and conscientious.

Also, for more general room-by-room cleaning/spring cleaning pointers visit Spring Cleaning: A Complete Checklist (A Spring Cleaning Extravaganza) by Sarah Aguirre at About.com Guide

Maintenance & Cleaning Tips for Your Home

Index

Replace your furnace filter
Clean the kitchen exhaust hood and air filter
Check your electrical system
Always have a multi-purpose fire extinguisher accessible.
Check light bulbs in all fixtures for correct wattage
Review your fire escape plan with your family
Consider installing a lightning protection system on your home
Protect electrical appliances from power surges & lightning
Have an HVAC contractor inspect & maintain your system
Check for damage to your roof
Run through a severe-weather drill with your family
Repair all cracked, broken or uneven driveways and walks
Protect your home from sewer or drain back-up losses
Check all the fascia and trim for deterioration
Check your water heater
Check shutoff valve at each plumbing fixture
Clean clothes dryer exhaust duct, damper & under dryer
Replace extension cords that are brittle, worn or damaged
Inspect & clean smoke & carbon monoxide alarms

Replace or clean your furnace filter

It should be checked once a month and replaced or cleaned as needed. Some filters are reusable and are supposed to be taken out, washed with a hose and re-inserted. A dirty filter can lower the efficiency of the heating/cooling system, increase heating costs and cause fires.

Clean the kitchen exhaust hood and air filter

Keeping this clean of cooking grease will help keep a stovetop fire from spreading.

Check your electrical system

Look for burn marks at the main electrical panel; they can be a sign of arcing inside the panel, which can easily lead to a fire. Loose connections or damaged insulation can cause the arcing. Note: Only a qualified electrician should remove the front panel cover.

Trip and reset the circuit breakers regularly.

Remove any combustible materials such as paper boxes or flammable liquids from the area near the main electrical panel. Sparks caused by arcing inside the panel can ignite material stored nearby.

Check all electrical outlets for loose-fitting plugs they are an indication of a worn out receptacle. Worn receptacles should be replaced as they cause overheating and fires. Also check electrical outlets and switches to be sure they work properly. If any switches, outlets or receptacles do not work, have a qualified electrician determine the problem and fix it to avoid fires inside the walls of your home.

Install safety covers to help protect children from electrical shock. Any appliance or tool that gives even the slightest shock should be unplugged and checked by an electrician or repair shop.

Always have a multi-purpose fire extinguisher accessible

Make sure it is Underwriters Laboratories (UL) listed or Factory Mutual (FM) approved. Check the gauges to make sure they are charged and ready to use.

Make sure the light bulbs in all your fixtures are the correct wattage

The light fixture manufacturer recommends the correct wattage. If too high a wattage bulb is used in a light fixture, heat produced inside the fixture can lead to fire inside the fixture, ceiling or wall.

Consider installing a lightning protection system on your home

Read more at Lightning protection systems.

Protect all your electrical appliances from power surges and lightning

Read more at How to choose surge protection for your home.

Have a professional air conditioning contractor (HVAC) inspect and maintain your system as recommended by the manufacturer

Maintenance should include:

- Cleaning the evaporator coil
- Lubricating fans and motors
- Tightening or changing the belts
- Checking electrical safeties
- Checking the drain pan for leaks
- Testing the capacitors
- Check the condensate drain
- Test the crankcase heater
- Calibrating the thermostat
- Visually checking the wiring for potential short circuits

These steps can help decrease the chance of fire, save money by making the system run more efficiently and help prevent breakdowns.

Things you can maintain:

- Check the condensate hose to be sure it is not blocked with algae.
- Clean the outside condensing unit screen of leaves.
- Listen for unusual noises.

Check for damage to your roof

Signs include missing, curling, cupping, broken or cracked shingles. Pooling or ponds of water that fail to drain from flat roofs may indicate low areas and inadequate drainage.

Repair all cracked, broken or uneven driveways and walks to help provide a level walking surface

This will help prevent guests and family members from slipping, tripping or falling.

Protect your home from sewer or drain back-up losses

Read more at Wet Basements.

Check all the fascia and trim for deterioration

These areas can become weathered and worn and may lead to potential water damage.

Check your water heater

If you have a gas-fired water heater, check to make sure it is venting properly. Light a match next to the vent and wave it out (don't blow it out). See if the smoke is pulled up into the vent. If it isn't, have a professional inspect and repair it. Otherwise, carbon monoxide and other combustibles can build up in the home.

Check around the base of your water heater for evidence of leaks. If your water heater is over 5 years old, it should be checked monthly for any leakage or rusting at the bottom. If water leakage or rust is found, the water heater should be replaced.

Check the shutoff valve at each plumbing fixture to make sure they function

Know the location of all valves and what equipment and water lines they serve. Teach all family members.

Clean the clothes dryer exhaust duct, damper and space under the dryer

Poor maintenance allows lint to build up in the exhaust duct and cause fire.

Replace all extension cords that have become brittle, worn or damaged

Exposed wires may cause arcing, which will produce heat and can start a fire. Care should also be taken to keep appliances and their power cords away from water or a heat source because this will damage the cord's insulation.

Inspect and clean dust from the covers of your smoke and carbon monoxide alarms

Read more at Smoke alarms save lives.

Living Rent-Free in the wake of the Real Estate Finance Crisis

2010-03-12T16:10:00.000-08:00

This piece from the LA Times (February 27, 2010) is an interesting read and I believe gives an accurate analysis of the situation within our financial institutions. Frankly, they’re hammered. One observation however is there was no mention of short sales and that too is part of what could explain why banks are extending the foreclosure process.

It’s said that where a lender can foreclose and at least break even, there is no chance of an approval on a short-pay. I’d imagine that processing these properties is a priority. Everything else (the majority) is depreciated to the point that modification, short sale or foreclosure is the only option. As less than 30% of distressed properties owner seek alternatives (e.g. modification and short sale) lenders have a massive amount inventory to organize, foreclose and sell.

Many borrowers in default stay put as lenders delay evictions

Despite being months behind, many strapped residents are hanging on to their homes, essentially living rent-free. Pressure on banks to modify loans and a glut of inventory are driving the trend.

It's been 16 months since Eugene and Patricia Harrison last paid the mortgage on their Perris home. Eleven months since the notice got slapped on their front door, warning that it would be sold at auction.

A terse letter from a lawyer came eight months ago, telling them that their lender now owned the house. Three months later, the bank told them to pay up or get out by the end of the week.

Still, they remain in the yellow ranch-style home they bought seven years ago for $128,000, with its views of the San Jacinto Mountains. They're not planning on going anywhere.

"We're kind of on pins and needles, but who'd want to leave when you put this kind of energy into a house?" said Eugene Harrison, 70, gesturing toward a bucolic mural of mountains, stream and flowers the couple painted on the living room wall.

Throughout the country, people continue to default on their home loans -- but lenders have backed off on forced evictions, allowing many to remain in their homes, essentially rent-free.

Several factors are driving the trend, industry experts say, including government pressure on banks to modify loans and keep people in their homes.

And with a glut of inventory in places like Southern California's Inland Empire, Nevada and Arizona, lenders are loath to depress housing prices further by dumping more properties into a weak market.

Finally, allowing borrowers to stay in their homes helps protect the bank's investment as it negotiates with the homeowners, said Gary Kirshner, a spokesman for Chase bank, a major lender.

"If the person's in the property, there's less chance for vandalism, and they're probably maintaining the house," he said.

Economists say the situation won't last forever, but in the meantime the "amnesty" may allow at least some homeowners to regain their financial footing and avoid eviction.

In the Inland Empire, an estimated 100,000 homeowners are living rent-free, according to economist John Husing, who based that number on the difference between loan delinquencies and foreclosures. Industry experts say it's difficult to say how many families are in that situation nationally because only banks know for sure how many customers have stopped paying entirely.
But Rick Sharga of Irvine data tracker RealtyTrac notes that the number of loans in which the borrower hasn't made a payment in 90 days or more but is not in foreclosure is at 5.1% nationally, a record high. And yet the number of foreclosures last year was 2.9 million, below the 3.2 million that RealtyTrac economists predicted.

More evidence is provided by another firm, ForeclosureRadar, which says it now takes an average of 229 days for a bank to foreclose on a home in California after sending a notice of default, up from 146 days in August 2008.

"For some reason, banks are being more lenient with homeowners who are behind on their loans," Sharga said. "Whether it's a strategy to try and slow down the volume of foreclosures or simply a matter of the banks being able to keep up with volume is something that banks only know for sure."

Lenders say the trend reflects their efforts to work with borrowers to modify loans to avoid foreclosure. Bank of America "continues to exhaust every possible option to qualify customers for modification or other solutions," spokeswoman Jumana Bauwens said.

Some lenders are making it a policy to partner with delinquent borrowers. Citibank said this month that it would let borrowers on the brink of foreclosure stay at their homes for six months, whether or not they make payments, if they turn over their property deed.

Such policies may partly reflect the fact that lenders can't keep up with all the foreclosures, some say.

"The mortgage lenders are so backlogged that some people are able to slip through the cracks," said Kathryn Davis, a real estate agent at America's Real Estate Advocates in Corona.

That was apparently the case for the Harrisons, who were told at various times that their house had been sold, that it belonged to someone else and that it was empty.

"It's been frustrating, a real major pain in the buttocks," said Eugene Harrison, a nondenominational minister with a clipped mustache and a sudden laugh.

The Harrisons missed their first payment in October 2008, shortly after Patricia Harrison, 57, lost her job as a healthcare aide and her husband's part-time towing work dried up. They said they applied for a loan modification with Countrywide Financial (since acquired by Bank of America) but were told that they couldn't receive one until they were three months behind on their payments. So they stopped paying.

In April 2009, they received a notice warning them that their property "may be sold at a public sale," and in July, they were told their house was a bank-owned property.

The bank sent a notice by FedEx in October demanding $3,000, and when the Harrisons called to discuss this notice, they were told they had four days to vacate the house.

Panicked, they arranged to stay with family in New Mexico and started packing their things, filling their garage with boxes of books, camping equipment and art. But no one came to kick them out.

"We were afraid to leave the house, afraid the sheriff was going to come," said Patricia Harrison, an amateur painter.

After contacting consumer advocates about their situation, the Harrisons decided to stay put. Soon after, two men in a white pickup truck showed up at the house and peeped in the windows, telling the Harrisons that they thought the house was abandoned.

The Harrisons suspected they were planning to move in themselves and chased them away.

The couple don't want to leave but are in the midst of a running dispute with Bank of America about the terms of their loan modification. The bank says it mailed them documents this month.

As they wade through the red tape, the Harrisons can't imagine abandoning a house where they've left their mark in the goldenrod and potpourri rose walls, the new fixtures and stenciling in the bathrooms, the fruit trees planted in the yard.

Although the Harrisons' future is uncertain, industry observers agree that the rent-free life can't last forever. As home values climb, banks will find it financially advantageous to foreclose on delinquent borrowers and sell their properties.

"In many cases, particularly in California, people owe a boatload of payments, and no bank is going to forgive that," said Guy Cecala, editor of Inside Mortgage Finance, a trade publication.

In Diamond Bar, the Fraguere family is finally moving on after living rent-free for 18 months. Job loss and other setbacks prevented them from paying their mortgage, but they say they didn't hear anything from the bank, First Franklin, until a real estate agent showed up at their door last month saying she was going to sell their house.

Sandy Fraguere wasn't surprised that it had taken the bank so long to ask them to move.

"I don't think they really knew what was going on or who was there," she said.

Next stop for the Fragueres is a hotel, where they plan to stay for two weeks until their apartment in Chino Hills is ready for them to move in. Their dogs are being boarded and their belongings stored until they can retrieve them someday. Their children, ages 8 and 9, are being steeled for more instability.

The Fragueres have started saying goodbye to their neighbors, adding yet another empty house to a block that has already seen two other families forced to pack up and leave.

Los Angeles Times - February 27, 2010 by Alana Semuels

A HUD required good faith loan estimate will protect you

2010-03-08T13:39:00.000-08:00

Beginning Jan. 1, the Dept. of Housing and Urban Development (HUD) required lenders to issue Good Faith Estimates to protect consumers applying for mortgage loans. Some loan officers, however, sidestep the new requirement by giving their initial quotes on informal worksheets that carry no federal consumer protections. It is important that consumers understand the differences between the federally mandated good faith estimate form and a lender’s informal worksheet.

Last month, HUD told lenders and loan officers that under no circumstances can worksheet quotes be issued to a mortgage applicant in lieu of a good-faith-estimate form.

Under the new law, once a mortgage applicant supplies the essential application information, including Social Security number, property address, and estimated value, among other data, lenders must issue a binding-cost good-faith estimate. Once this information is provided, lenders are required to issue the good faith estimate within three days of the application.

Loan officers cannot refuse to provide a good faith estimate to an applicant who requests one, nor can they tell applicants that they must commit to moving forward with their mortgage company to obtain a mortgage prior to receiving a good faith estimate.

Once an applicant has received a good faith estimate, they can take the form with them to comparison shop. The new form includes itemized boxes allowing mortgage applicants to compare quotes from up to four lenders, such as interest rates, loan fees, prepayment penalties, and total settlement expenses.

The good faith estimate also ties upfront estimates to later charges at closing, and encourages borrowers to check line by line for any discrepancies. The form explains which fees come with zero tolerance for changes between upfront estimates and closing—generally the lender’s own fees and local transfer taxes—and which fees allow a 10 percent fluctuation for changes higher than the estimate, such as certain title and closing-related services.

Some worksheets resemble good-faith estimates, but have titles such as “estimated settlement costs” at the top of the page. Others indicate on the bottom of the form that the worksheet is not a good faith estimate, so consumers should carefully review documents before making any decisions.

Shopping for a loan? A good-faith estimate will protect you

LA Times.com
February 28, 2010
by Kenneth R. Harney

If you plan to take out a mortgage or refinance any time soon, you might want to hear this blunt message from federal officials: Don't fly blind. When you're shopping among competing lenders for the best loan terms and fees, make sure you know which quotes come with a guarantee and which do not.

Depending upon how loan officers provide their quotes upfront -- on an informal "work sheet" that carries no federal consumer protections or on a new, three-page "good-faith estimate" mortgage shopping tool that comes with rock-hard guarantees -- there could be a world of difference.

A loan officer might quote you fees that are low-balled by hundreds of dollars on an informal work sheet to get your business. But if the quotes are made on a good-faith estimate, they've got to be accurate because, under federal rules that took effect Jan. 1, any significant excesses must come out of the lender's own wallet at closing.

This month the Department of Housing and Urban Development brought together representatives of the highest-volume mortgage lenders in the country -- who originate a combined 80%-plus of all new home loans -- to review the agency's reformed good-faith-estimate and closing documents.

Among the issues discussed: the widespread use of informal work-sheet estimates to quote loan shoppers mortgage rates and closing fees. HUD does not object to lenders using work sheets to give casual shoppers a rough idea of what they'll pay. But the agency says it wants lenders and loan officers to make clear to customers that work sheets are not good-faith estimates, and they are not guaranteed.

At the meeting with major lenders, HUD Deputy Assistant Secretary Vicki Bott warned that under no circumstances can work-sheet quotes be issued to a mortgage applicant "in lieu of a GFE." Once a consumer supplies the essential application information -- Social Security number, property address and estimated value, among other data -- lenders must issue a binding-cost good-faith estimate.

Also, loan officers cannot refuse to provide a good-faith estimate to an applicant who requests one, nor can they tell applicants that they can receive a GFE only if they commit to moving forward with their company to obtain the mortgage.

"By no means can they say you are bound to me as your lender" following issuance of a cost-guaranteed good-faith estimate, Bott said. Why? Because the whole concept of the revised GFE is to enable home buyers and refinancers to shop intelligently, with confidence in lenders' estimates.

You can now get cost-guaranteed quotes on a good-faith estimate from one lender, then take them and compare them with GFE quotes from competitors. The new form contains itemized boxes allowing comparison of up to four lenders' quotes -- including interest rates, loan fees, prepayment penalties and total settlement expenses.

The good-faith estimate also ties upfront estimates to later charges at closing, and encourages borrowers to check line by line for any discrepancies. The form explains which fees come with zero tolerance for changes between upfront estimates and closing -- generally the lender's own loan fees and local transfer taxes -- and which fees allow a 10% tolerance for changes higher than the estimate, such as certain title and closing-related services.

Here is how to be a smart mortgage shopper using the new federal rules to your advantage. If you are seriously looking for the best deal and are prepared to supply basic application information, ask for a good-faith estimate by name. If you're merely shopping for generic rate quotes, work sheets are fine as long as you understand their limitations.

Beware of look-alike ploys and substitutes. Bott told lenders to make sure their work sheets do not "look like a GFE" and that they "be clear [to the consumer] that they are not GFEs."

Some work sheets that have been used by lenders since Jan. 1 resemble good-faith estimates but have titles such as "estimated settlement costs" at the top of the page. Others indicate on the bottom of the form that the work sheet "is not a GFE," but the typeface is so small it's barely legible.

Finally, be aware that federal law requires that a good-faith estimate be issued within three days of any application.

Jumbo loan delinquencies move higher

2010-02-10T11:43:00.000-08:00

This piece from the LA Times regarding jumbo loans is sobering and illustrates that everyone is affected. A “Jumbo” is defined as a loan amount over the conforming limit as set by Freddie Mac and Fannie Mae. In our region currently, that ceiling is a loan of over $729,750.00.

I get the same question constantly in regards to my real estate business, “How are things going, is it picking up?” The delivery is usually cautiously empathetic and concerned. “Is the worst over” is another common query and my standard answer to that is, if I could answer that question I’d be worth a billion dollars.

The truth is that no one knows and anyone who claims they do is selling something… There are so many factors that will determine how things go ultimately and frankly if our government would spend half the energy (focused on finding real solutions) that they devote to undermining each other, we’d be on a faster road to recovery.

Living in the “now”

Pursuant to the topic of the article, following are the local numbers. Properties sold for $750,000.00 or more in the combined South Bay market are up 103% for January 2010 compared to January 2009. Pending sales are also up 73% vs. Jan. 2009 even though inventory is down 32% as most non-distressed sellers are choosing to wait.

That said, ‘pre-foreclosure’ activity on the Palos Verdes Peninsula (90274 and 90275) in this price range is, I’m sure at record levels with 138 homes either showing as NOD (notice of default), scheduled for auction or REO (bank owned). The combined beach cities; Hollywood Riviera, Redondo, Hermosa and Manhattan Beach show 144 properties in these categories.

Prime jumbo loan delinquencies still rising, report shows
LA Times by Alejandro Lazo
February 8, 2010

People who hold jumbo loans on pricey U.S. properties continued to struggle in January as more Americans lose their jobs and property values have plummeted, according to a report released Monday.

Jumbo loans were popular -- and often necessary to afford homes in pricey areas like Southern California -- during the heady years of the boom.

Jumbo loans are generally defined as being above certain conforming limits set by mortgage titans Freddie Mac and Fannie Mae. (The conforming limit for single-family homes was $417,000 from 2006 to 2008 but was increased temporarily by federal lawmakers in early 2008 to $729,750 in certain high-cost areas, including Los Angeles County.)

Overall, delinquencies of 60 days or more on prime jumbo loans that were packaged into securities and sold to investors rose to 9.6% in January, up from 9.2% in December and 3.7% a year earlier, according to the report by the Fitch Ratings agency in New York.

California, which comprises 44% of the market, saw its delinquency rate rise to 11.3% in January from 10.8% in December and 4.1% a year earlier.

“The deterioration in performance is really the combination of two things going on: rising unemployment that took place throughout 2009 as well as our estimate that about a third of all jumbo loans that are current are underwater in terms of the value, so [borrowers] owe more on their properties than they are worth,” Fitch managing director Vincent Barberio said. “As more of these loans become delinquent, they ultimately will come into foreclosure.”

Prime jumbo loan delinquencies began to rise in the second quarter of 2007, but accelerated in 2009 and nearly tripled over the course of the year, Fitch said. The five states with the highest volume of prime jumbo loans outstanding are California, New York, Florida, Virginia and New Jersey.

Short Sales - Foreclosure: Tax implications

2010-02-09T13:52:00.000-08:00

An important piece of the Short Sales – Foreclosure scenario that often gets overlooked are the tax implications of reduced or cancelled debt. The information and especially the links to the IRS website are a must read for anyone contemplating a distressed sale or loan modification.

As always, be sure to contact an accountant or attorney to verify that you understand completely what liability, if any you will have upon successfully selling or modifying.

Home Foreclosure and Debt Cancellation
Information provided by the Law Office of Gregory T. Royston

Update Dec. 11, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

The amount excluded reduces the taxpayer’s cost basis in the home. More details

Further information, including detailed examples, can also be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments.

The questions and answers, below, are based on the law prior to the passage of the Mortgage Forgiveness Debt Relief Act of 2007.

1. What is Cancellation of Debt?

If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.

2. Is Cancellation of Debt income always taxable?

Not always. There are some exceptions. The most common situation where cancellation of debt is not taxable as income involve:

Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.

Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you.You are insolvent when your total debts are more than the fair market value of your total assets.Insolvency can be fairly complex to determine and the assistance of a tax professional is recommended if you believe you qualify for this exception.

Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.The rules applicable to farmers are complex and the assistance of a tax professional is recommended if you believe you qualify for this exception.

Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral.That is, the lender cannot pursue you personally in case of default.Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income.However, it may result in other tax consequences, as discussed in Question 3 below.

3. I lost my home through foreclosure. Are there tax consequences?

There are two possible consequences you must consider:

Taxable cancellation of debt income (Note: As stated above, cancellation of debt income is not taxable in the case of non-recourse loans).

A reportable gain from the disposition of the home, because foreclosures are treated like sales for tax purposes.(Note: Often some or all of the gain from the sale of a personal residence qualifies for exclusion from income).

4. I lost money on the foreclosure of my home. Can I claim a loss on my tax return?

No. Losses from the sale or foreclosure of personal property are not deductible.

5. Can you provide examples?

A borrower bought a home in August 2005 and lived in it until it was taken through foreclosure in September 2007. The original purchase price was $170,000, the home is worth $200,000 at foreclosure, and the mortgage debt canceled at foreclosure is $220,000. At the time of the foreclosure, the borrower is insolvent, with liabilities (mortgage, credit cards, car loans and other debts) totaling $250,000 and assets totaling $230,000.

6. I don’t agree with the information on the Form 1099-C. What should I do?

Contact the lender. The lender should issue a corrected form if the information is determined to be incorrect. Retain all records related to the purchase of your home and all related debt.

7. I received a notice from the IRS on this. What should I do?

The IRS urges borrowers with questions to call the phone number shown on the notice. The IRS also urges borrowers who wind up owing additional tax and are unable to pay it in full to use the installment agreement form, normally included with the notice, to request a payment agreement with the agency.

8. Where else can I go to get tax help?

If you are having difficulty resolving a tax problem (such as one involving an IRS bill, letter or notice) through normal IRS channels, the Taxpayer Advocate Service may be able to help. For more information, you can also call the TAS toll-free case intake line at 1-877-777-4778, TTY/TDD 1-800-829-4059.

In some cases, you may qualify for free or low-cost assistance from a Low Income Taxpayer Clinic (LITC). LITCs are independent organizations that represent low income taxpayers in tax disputes with the IRS. Find information on an LITCs in your area.

Related Items:

Publication 523: Selling Your Home
Publication 544: Sales and Other Dispositions of Assets
Publication 908: Bankruptcy Tax Guide
Form 1040: U.S. Individual Income Tax Return
Form 1040: Schedule D, Capital Gains and Losses
Form 1099-C: Cancellation of Debt
Form 9465: Installment Agreement Request

SHORT SALE vs. FORECLOSURE

2010-01-22T11:48:00.000-08:00

What is the difference? By now you may know that a “Short Sale” is a lender approved sale of real estate in which the sale price is less than (or short of) the mortgage balance. A foreclosure however is where the bank takes the property and either it is sold through auction or sold by the bank in the open market.

What about the homeowner? After the smoke clears where does the homeowner stand? Obviously if the bank is loosing money, the borrower will not be taking anything away from the transaction. In the best case scenario the homeowner walks away without any liability and minimal credit damage. This is not the case with foreclosure.

It’s important to note that Short Sales will not work if the property has sufficient equity for the lender to foreclose, sell as an REO and at least break even. The homeowner must be thoroughly "upside-down" in their loan and be able to prove a legitimate hardship for a lender to approve the transaction.

The average cost for a lender to foreclose is approximately $50,000 and there are reserves that lenders are required hold to back up non-performing loans. Lenders don’t like to tie up resources to back up these loans and are generally open to alternatives.

The outline below will help to establish some of the major differences (impact to the borrower) between Short Sales and Foreclosure.

CREDIT SCORE

Foreclosure: Credit scores can suffer a loss of approximately 250 to more than 300 points and generally this can affect credit for over 3 years.

Short Sale: Late payments on mortgage will show and after the property is sold the loan is normally reported as ‘paid as agreed’, ‘paid as negotiated’ or ‘settled’. This can lower a credit score by as little as 50 as long as other accounts are being maintained. A short sale can influence a credit rating for as little as 12 to 18 months.

CREDIT HISTORY

Foreclosure: A foreclosure remains as a public record permanently and as part of a personal credit history for 10 years or more.

Short Sale: a short sale is not reported in a credit history. There is no specific report for short sales and the loan is generally reported as ‘paid’ or ‘settled’.

DEFICIENCY JUDGMENT

Foreclosure: In the State of California a lender has the right to pursue a deficiency judgment through judicial foreclosure.

Short Sale: The deficiency can be a point of negotiation with the lender

DEFICIENCY JUDGMENT (amount)

Foreclosure: The home will need to go through the REO process if it fails to sell at auction. Generally this results in a lower sales price and can take longer to sell, especially in a declining market. Bank offer these propertied “as is” and that will scare off many potential buyers. All these delays can result in a higher deficiency.

Short Sale: With a properly managed short sale the property should sell at close to market price resulting in a lower deficiency.

FANNIE MAE (primary residence)

Foreclosure: A homeowner who looses a home to foreclosure is ineligible for Fannie Mae-backed loans for a period of 5 years.

Short Sale: After successfully negotiating and closing a short sale the homeowner is eligible for a Fannie Mae-backed loan in 2 years.

FANNIE MAE (non-primary)

Foreclosure: An investor who looses property to foreclosure is ineligible for Fannie Mae-backed loans for a period of 7 years.

Short Sale: After successfully negotiating and closing a short sale an investor is eligible for a Fannie Mae-backed loan in 2 years.

MORTGAGE COMPANIES

Foreclosure: On any future loan applications, a prospective borrower will be required to answer YES to question C in Section VIII of the standard 1003 form that asks “Have you ever had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” This will affect future interest rates.

Short Sale: There is no similar declaration or question regarding short sales.

SECURITY CLEARANCE

Foreclosure: As with a serious misdemeanor or felony conviction, foreclosure is a critical issue where a security clearance is concerned. In nearly all cases clearance will be revoked and the position will bet terminated.

Short Sale: On its own, a short sale does not challenge most security clearances.

CURRENT EMPLOYMENT

Foreclosure: Employers have the right and actively check the credit of all employees in sensitive positions. Foreclosure is frequently grounds for reassignment or termination.

Short Sale: A short sale is not report on a credit report and as such is not a challenge to employment.

FUTURE EMPLOYMENT

Foreclosure: Credit checks are required for applicants by many employers. A foreclose is among the most detrimental credit item an applicant can have and in many cases will challenge employment.

Short Sale: A short sale is not report on a credit report and as such is not a challenge to employment.

Robert Dixon Earns NAR Short Sales and Foreclosure Certification

2010-01-16T16:51:00.000-08:00

FOR IMMEDIATE RELEASE:

Contact:
RE/MAX Palos Verdes-Execs
(310) 378-7747

Robert Dixon Earns NAR Short Sales & Foreclosure Certification
Buyers & Sellers Benefit from REALTOR® Expertise in Distressed Sales

Redondo Beach, California, January 11, 2010 — Robert Dixon with RE/MAX Palos Verdes-Execs has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

“As leading advocates for homeownership, REALTORS® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR® who has earned the SFR certification for these kinds of purchases.”

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS® stay current on national and state-specific information as the market for these distressed properties evolves. For more information about the SFR certification, visit www.REALTORSFR.org or call 1-877-510-7855.

# # #

Affordably prepping your home for sale

2010-01-03T15:21:00.000-08:00

Happy New Year to all…

I could have picked a lot of topics for my first post of 2010 and ultimately chose to go with something not directly related to the financial goings-on in real estate current events.

Preparing your home to sell, affordably works for any market and the link to Barbara Ballinger’s ‘10 Affordable Home Redos’ on Realtor.org provides some interesting, budget-friendly ideas that could help encourage a quicker sale.

There are also additional links to related topics that are a must-read for anyone looking to market their home.

All good things...

2009-12-21T19:08:00.000-08:00

I received my Weekly Mortgage Market Update today from Victor Samaan, our Bank of America rep and as anticipated the threat of higher interest rates on home loans could be just around the corner. It's been my contention that one of the best reasons to buy now, even with the specter of further devaluation in coming months is interest rates. How much would a point add to your payment?

"ALL GOOD THINGS MUST COME TO AN END..."

Or so the popular saying goes. And last week, the Fed reiterated once again that their Mortgage Backed Security (MBS) purchase program...the program that has helped keep home loan rates low for much of the last year...will end on March 31, 2010 as previously stated. Here's the lowdown on what this means, and all the latest news impacting home loan rates and the markets.

Last Wednesday during their regularly scheduled meeting of the Federal Open Market Committee, the Federal Reserve kept the Fed Funds Rate unchanged. But history has shown that when the Fed has left rates too low for an extended period of time, there is a price to be paid, via higher inflation. Yet if the accommodation is removed too early, it can derail an already fragile recovery. The Fed continues to walk this tightrope, trying to get it "just right."

Along with this decision, the Fed emphasized and reminded that their MBS purchase program will still end on their already revised deadline date of March 31, 2010. Why is this significant? Let's look at the numbers from last week to get an idea. The Fed purchased $16B in MBS in the latest week bringing the year-to-date total to $1.087T. This means there is $163B left to purchase before March 31, which in turn means the Fed will purchase about $11.5B on average each week through the end of the buying program. This is less than half of what the Fed was buying regularly throughout 2009 and a 1/3 less than what the Fed has been buying in recent weeks.

So why does this point to higher rates around the corner? When there is lots of supply and diminishing demand, the price of that item will subsequently go down - it's Economics 101. So, when Bond prices start to decrease from the diminishing demand of the Fed's purchases, home loan rates will naturally be likely to increase.

Source: Victor Samaan at Bank of America

Home construction rebounds!?

2009-12-18T14:24:00.000-08:00

OK, I'll bite. Because in the end I want to believe that the formula exists to work through all this. You'll note, however that all this new construction "jumped" by only 1.9% here in the West verses 16.4% in the Northeast. So in our micro southern California market housing starts are nearly nonexistent.

And although I partly agree with the comment (love the comments) by Brian Javeline about getting some focus on revitalizing the 128 million existing homes in need, there will always be new construction and Yousuf points out at the end of the piece that Wall Street banks need to help the taxpayers who funded their bailouts with improved lending practices.

Home construction rebounds from 6-month low

By Hibah Yousuf, staff reporter
December 17, 2009: 10:41 AM ET

NEW YORK (CNNMoney.com) -- Home building rebounded from a six-month low in November, with improvement in new home construction in all sections of the nation, according to a government report issued Wednesday.

Construction of new homes rose to an annual rate of 574,000 during the month, 8.9% above the revised October rate of 527,000. The rate was still 12.4% below the 655,000 rate during November 2008.

A consensus estimate of economists surveyed by Briefing.com expected 574,000 housing starts during the month.

New construction jumped the most in the Northeast, with a 16.4% rise from the previous month. Housing starts rose 12.3% in the South, 3% in the Midwest and 1.9% in the West.

The number of building permits issued during November rose to a seasonally adjusted annual rate of 584,000. That was 6% above the revised October rate of 551,000, and 7.3% below the November 2008 estimate of 630,000.

One reason for the October downturn was concern that an $8,000 homebuyer's tax credit -- part of the Obama administration's economic stimulus -- was going to expire on Dec. 1.

At the start of November, the credit was extended through the end of June and expanded to apply to more buyers. But David Crowe, chief economist at National Association of Homebuilders, said the bill hasn't had a chance to impact the housing market.

"This is a recovery from the prior month," said. "But we're still seeing a tapering off toward the end of the year. During the middle of this year, we saw a nice buildup through the late summer as a result of the homebuyer's tax credit."

Housing starts peaked this year in July with an annual rate of 593,000.

"We're in a bit of a lull, but the new (extended) credit will have an impact as we move into 2010 and consumers plan for that credit availability, and builders begin to answer expected demand in the spring," he said.

Crowe added that the tight credit market has also made it difficult for builders to borrow money to start building projects.

"Builders are ready to begin restocking their inventories to prepare for the selling season, but they can't get production credit from the banks," Crowe said. "Banks are effectively making carte blanche decisions without recognizing projects that are in decent markets with viable futures."

Crowe said he hopes President Obama's recent pressure on Wall Street banks to help taxpayers who funded their bailouts will improve lending practices.

Source: CNNMoney.com

Citigroup to suspend foreclosures/evictions for holiday season

2009-12-18T08:11:00.000-08:00

I’m not sure exactly how I want to position this… and as much as I want to be professional and not have an opinion, walk the fence (so-to-speak) I can’t help myself on this one.

OK so Citibank is saying “why don’t you folks take an additional 30 days because we’re not going to do anything with your home for the next 30 days anyway and really there are way too many functions on our schedule to sign all the docs until mid January.” The truth is that tens of THOUSANDS of REOs are sitting vacant and will be indefinitely. Much of this inventory is not even being marketed!

Citibank says it’s working on an alternative to foreclosure, so why not work on an alternative to evicting these owners, mid winter 30 days from now? In reality this is a drop in the bucket… The numbers of foreclosures reported in the third quarter were more than 900,000 and that is approximately 23% higher than a year ago. See map at Where Foreclosures Cluster.

Considering the magnitude of this crisis, for an organization the size of Citibank to do a press release about this weak concession is nothing but a publicity stunt to garner “good will” during the holidays. I’m embarrassed for them and ashamed that MSNBC posted it (seriously)… Can I get a WHOOP-DEE DOO!?

Citigroup to suspend foreclosures for 30 days
Bank is working on ‘long-term fundamental alternatives’ to foreclosure

WASHINGTON - Citigroup Inc. will suspend foreclosures and evictions for 30 days in a temporary break for about 4,000 borrowers during the holiday season.

The New York-based bank said Thursday the suspension will run from Friday through Jan. 17. It applies only to borrowers whose loans are owned by Citi. Borrowers who make payments to Citi but whose loans are owned by other investors are out of luck.

"We want our borrowers to have a much less stressful time, to spend their time with their families during the holidays as opposed to worrying about their homes," Sanjiv Das, head of the company's mortgage division, said in an interview.

The suspension means Citi will halt foreclosure sales and stop evicting homeowners from properties it has already seized. The company projects it will help 2,000 homeowners with scheduled foreclosure sales and another 2,000 that were due to receive foreclosure notices.

Das also said the company is working on "some long-term fundamental alternatives" to foreclosure, but declined to be specific. "We know that moratoriums are not permanent solutions," he said.

Most major lenders suspended foreclosures last winter while the Obama administration developed its $75 billion loan modification program. Foreclosures picked up again after those suspensions lifted. In recent months, they have fallen as banks evaluate whether borrowers qualify for the government program.

Citi has enrolled about 100,000 borrowers in the Obama program, but had made only about 270 of those modifications permanent as of the end of last month, according to a Treasury Department report. But Das said the low number resulted from a "reporting error" and said it will rise dramatically by year-end.

"I have put a lot of pressure on my team to make sure that there is almost nothing left in the pipeline," he said.

Short-Sale standards could help troubled homeowners

2009-12-17T19:10:00.000-08:00

Bravo! Standardizing the short sale process is a fantastic move…

What’s missing from this proposal is requiring that agents be qualified to work in the Short Sale arena. These transactions are much more problematic and time consuming then a standard sale and require an entirely new skill set.

There are agents, with short sale listing who probably shouldn’t have a real estate license and yet they are representing owners in dire straits, where time is of the essence and they (the agent) are all that stands between a successful short sale and foreclosure.

When one or the other is the only option, there’s a big difference. The credit score hit alone is at least a couple hundred points higher, foreclosure verses short sale and a foreclosure stays on your record for a minimum of 7 years verses just a couple with a short sale. There are other issues as well.

If you’ve followed the content I’ve posted recently, you’ll probably agree that we need to assure that more of this “pre-foreclosure” property is successfully marketed. Perhaps the holders of these second liens will need to decide between $3,000 guarantee and the prospect of pursuing more money, over time by legal means. We all know who end up with the lion share in that scenario.

In the end, if we can cut the number of foreclosures then it’s a win. The banks do not need more property and the short sale process needs to be less of a hassle with a higher rate of success. As someone focusing more and more on short sales, parameters and timeline are welcomed.

Obama's standardized short-sale plan could help troubled homeowners

The Los Angeles Times
By Kenneth R. Harney
December 13, 2009

Reporting from Washington - If you're in trouble on your mortgage and can't get a loan modification, check out the Obama administration's standardized short-sale plan that's scheduled to roll out in the next several months.

The program, outlined Dec. 1 by the Treasury Department, is an attempt to streamline what has traditionally been a contentious, time-consuming process by requiring lenders and others to use nationally uniform documents, timelines and financial incentives.

A short sale involves a lender or investor agreeing to collect less than the balance owed on a mortgage debt out of the proceeds of a negotiated sale of the property. Often a short sale is the last alternative to foreclosure available to distressed homeowners and banks. Say you've lost your job and fallen behind on mortgage payments. With little or no income, you can't qualify for a modification program.

In this situation -- grim as it is -- your best move may be to see whether your lender will accept a short sale. Though the idea sounds straightforward, in practice it is not. First, the bank needs to be convinced that a short sale would yield it more money at the bottom line than a foreclosure would.

This usually means you need to bring in a real estate agent who knows the ropes and can pull together the key information needed by the bank: recent comparables on closed sales, local market trends and the likely selling price of your house.

You'll also need a buyer for the house -- one who'll pay a price acceptable to the bank and has financing to close the deal. If you happen to have a second mortgage or home equity credit line on the property, you'll also need to negotiate how much that lender will receive from the sale proceeds.

That can be tricky. In depressed real estate markets, the second-lien lender may be holding a note that's worthless in a foreclosure because plummeting property values have wiped out the collateral. Yet that same bank is in a pivotal position: It has the legal power to block the short sale by refusing to sign on to the deal.

Equally troublesome in short sales is the fact that banks, mortgage servicers and bond investors often have conflicting requirements for documentation and financial yields that can complicate and drag out the haggling for months.

Enter the Obama administration's new streamlining plan. Besides requiring lenders and servicers to use uniform documentation, pre-approved short-sale terms and accelerated turnaround times, the plan provides financial incentives for key players:

* Homeowners who successfully complete a short sale under the program receive $1,500 to defray relocation costs.

* Mortgage servicers can receive $1,000 per case.

* Investors get $1,000.

* Second-lien holders receive up to $3,000 from the sale proceeds.

Even real estate agents get something: The rules prohibit banks from forcing them to cut their commissions from the listing agreement as part of the final deal.

Sounds like a formula for encouraging a lot more short sales, right? The jury will be out on that for months, and most major lenders are still studying the fine print of the Obama program. But early reactions from big banks appear to be positive.

Dave Sunlin, a senior vice president for Bank of America Corp., said: "We're very pleased. We welcome any effort to reach standardization for all parties" involved in short sales.

Faith Schwartz, executive director of Hope Now -- a Washington-based group representing the country's largest banks, mortgage servicers, bond investors and consumer counseling organizations -- said the plan should bring "uniformity and standards" to a process usually characterized by "mayhem" among the negotiating parties.

Scott Brinkley, a senior vice president for First American Corp., a firm that provides market data for banks, said, "You're going to see a lot of cooperation" by lenders and investors.

But there could be a major pothole: The Obama plan tilts to consumers by requiring second-lien holders to drop all financial claims against short-selling borrowers beyond the $3,000 they take out of the deal.

Travis Hamel Olsen, chief operating officer of Loan Resolution Corp., a Scottsdale, Ariz., consulting firm, says the $3,000 payment won't be enough for many second-mortgage lenders. Today they frequently obtain additional short-sale compensation from sellers as the price of their participation -- in cash or through promissory notes -- far beyond $3,000.

"I'm concerned that that could limit participation" by second-lien holders, Olsen said.

Bottom line for homeowners who might benefit: Don't have wild expectations, but definitely ask your servicer whether it plans to participate and whether the forthcoming standardized plan for short sales might work for you.

Source: Los Angeles Times

Short Sales: The 5 Stages of residential dispossession Pt. 1

2009-12-14T14:20:00.000-08:00

The 5 Stages of residential dispossession
Part 1: Short Sales

The process through which a home becomes Bank Owned or an REO (real estate owned) consists of approximately five stages.

1. Short Sale
2. NOD (notice of default)
3. Foreclosure
4. Auction
5. REO (real estate owned)

Over the next several weeks I will attempt to shed some light on this topic and hopefully provide some information or guidance that might help some homeowners avoid losing their home or at least minimize the impact of the inevitable.

Topic one (where a loan modification has failed) is the Short Sale and according to a recent article in the LA Times, the rate of foreclosure among outstanding mortgage loans in the Los Angeles metro area was 3.69% this October, compared with 1.75% in 2008. Those familiar with the real estate market in Q1 and Q2 of this year (2009) can appreciate what that could mean moving into the first part of next year... The national foreclosure average is 3% according to data released by First American CoreLogic, which tracks the mortgage market.

Delinquent loans 90 days or more past due constituted 10.9% of all mortgage loans in the Los Angeles area, up from 5.86% during the same month the year before. So it is likely that we’ll see a lot more short sales and foreclosures in 2010.

Please note that although I am a licensed real estate agent and member of the California Association of Realtors I am NOT and attorney, accountant or loan officer. If you need advice in any of these areas you should contact the appropriate professional. The information herein is meant to offer general information and although deemed to be accurate is not guaranteed.

The Short Sale

In the current real estate market, short sales and foreclosures represent a new traditional real estate transaction. It’s an unfortunate fact of life that over the past several years many homes were purchased for substantially more than their current value. In a recent Wall Street Journal piece “One in Four Borrowers Is Underwater “, writers’ Ruth Simon and James R. Hagerty state that nearly 10.7 million households , or about 23% of homeowners with mortgages had negative equity in the third quarter of 2009. It is estimated that more than 520,000 of these borrowers have received a notice of default.

A short sale is a lender approved sale of real estate in which the sale price is less than (or short of) the mortgage balance.

For agents, knowing how to maneuver the complexities of a short sale, on either side of the transaction is not merely a good skill to have in today’s market, it’s critical.

Distressed homeowners’ are in a race against the clock to avoid foreclosure and buyers need to identify sound real estate opportunities quickly to avoid wasting time and missing opportunity. In either case the agent must be able to evaluate all available options and identify or establish the components of an effective short-sale package.

Anatomy of a Successful Short Sale

Successful short sales require 3 elements:

1. Seller opportunity to get out of a bad situation with minimal credit damage.
2. Buyer gets a deal, purchases property below the true market value.
3. Lender nets more money than a foreclosure action would bring.

Sellers

It’s important to note that Short Sales will not work if the property has sufficient equity for the lender to foreclose, sell as an REO and at least break even. The homeowner must be "upside-down" in their loan for the lender to approve a short sale.

When a homeowner experiences a hardship and can no longer pay the mortgage the first and best option is a lender approved short sale to attempt to avoid foreclosure. Whereas there are still negative credit implications associated with a short sale, they are much less severe.

The first step is valuation, what is the current market value of the subject property? As stated above, if there is sufficient market value in a home a lender will not approve a short sale and perhaps a quick standard sale (even if it requires some money out of pocket) is the best solution.

Establishing the current market value of a home involves measuring the subject property against other properties in the neighborhood that have sold recently. An experienced agent, with working knowledge of an area can put together a Current Market Analysis or CMA or there are tools available online to get a rough idea of value. Understand the there are many factors from square footage, lot size and the age of a structure to amenities like pools, views and location in a given community etc. that can affect the value of one home as compared to another.

If it is determined that the current market value is significantly below the amount owed, then the second step is to contact the lender(s) for a short sale application and instructions specific to their policy. If the seller is working with an agent (and in most cases they should be) they need to execute the proper documentation to authorize the agent to deal directly with the lender and the initial call to the loss mitigation department or the person named in demand letters should be placed together. This is the best way to establish a working relationship, answer questions, verify information and get outline of what they want and how they will make a decision on a short sale.

Beyond these initial steps, any successful shot sale will require a properly prepared Short Sale Packet which can easily be in excess of 50 pages. Closing statements, purchase contracts, market statistics, financial documentation, disclosures and a plethora of other forms, agreements and miscellaneous information must be provided, however one of the more critical elements of the packet is the Hardship Letter.

The numbers are the only thing that a lender cares about, so the hardship letter should NOT be a sob story. It MUST be a factual description of a financial hardship that is leading to bankruptcy, foreclosure or both. The lender needs be convinced that the only other option is foreclosure, at which point they will analyze the situation and determine whether a short sale is a preferable direction.

It must be made evident that the borrower is headed for foreclosure or bankruptcy. The letter needs to give a clear picture of the financial condition and be backed up with documentation (pay stubs, medical bills, termination letters etc).

The average cost for a lender to foreclose is approximately $50,000 and there are the reserves that lenders are required hold to back up non-performing loans. Lenders don’t like to tie up resources to back up these loans and are generally open to alternatives.

Certainly there is more to consider. Pursuing a short sale is a complex process and in some cases, if caught in time it can be avoided. In others foreclosure is inevitable. If you are concerned about maintaining your mortgage or have questions about the process please call or email at your convenience

Buyers

A true Short Sale opportunity is where a homeowner owes more on their home than they will receive from a standard sale and a situation where the lender will approve a price that meets your budget.

Obviously for the buyers’ part, a purchase at the lowest possible price, that the lender will approve is the goal. Priorities for a buyer would be to establish that the homeowner is upside-down in their loan, that the target property is worth less than the total amount owed and that true hardship for the seller exists to convince the lender that a short sale is necessary. Also to be sure of clear title, that there are no prohibitive liens or other claims against the property that will stall the process or cause it to fail. If the loan is VA or FHA, the situation needs to meets their specific criteria for a short sale.

Buyers beware! All homes advertised as "Short Sale" are not necessarily short sales and potential buyers need to verify if and when the paperwork was filed with the lender(s) and whether that paperwork was properly completed. If not, you may end up wasting a lot of time and energy, the home will be foreclosed and you'll be back to square one. Considering that most short sales involve property that is already in default, time is of the essence. There must be enough time to complete the process before a foreclosure action is completed. This requires a willingness and cooperation from the seller and the lender as well as the motivation to work to avoid foreclosure.

Of course I'll suggest that you are best served by working with a licensed agent or Realtor who has short sale experience, however if you choose to go it alone, do your homework and remember that the sellers agent was retained by the seller, is working against the clock in an attempt to find a qualified buyer and to strike a deal with the lender. Many agents listing short sales are handling several at once. Your best interest may be best served by you being informed or using an experienced agent focused on you alone.

Los Angeles-area foreclosure rate up in October

2009-12-11T11:09:00.000-08:00

Along the lines of what I’ve been posting, we’re all just passengers on this one… see LA Times piece "Los Angeles-area foreclosure rate increases in October" below.

The bright side in South Bay, Palos Verdes Peninsula and the beach cities is that more-than-likely, as with the last round we will not experience the same degree of depreciation (if any) as areas inland or across the country.

Inventory: Active/Sold

On the Palos Verdes Peninsula 90274 and 90275, inventory is currently low with 253 properties (SFRs, condos and town houses) available for sale. Per the MLS, there have been 74 closed sales November 1st through today (16 since December 1).

In the beach cities (Manhattan Beach 90266, Hermosa Beach 90254, South Redondo Beach 90277 and the Hollywood Riviera) there are 364 active listings and 126 sales since the 1st of November (39 so far in December).

Torrance (not including the Hollywood Riviera) 91 listed currently, 76 sold November 1 to present (19 of those since December 1st).

If you’d like numbers on additional areas, please send a request via email.

The slow-down in December is expected, interest rates (see below) are still outstanding and although prices in general may drop further during 2010 (most likely during Q1/Q2) the best properties are still selling.

Rates as of Friday, December 11, 2009

Conforming 30 Year Fixed
Rate Disc. Points APR
4.625% 0.750% 4.813% Details

Conforming Jumbo 30 Yr Fixed
Rate Disc. Points APR
4.875% 0.750% 5.049% Details

FHA 30 Yr Fixed
Rate Disc. Points APR
4.750% 0.608% 5.077% Details

FHA Jumbo 30 Yr Fixed
Rate Disc. Points APR
4.875% 0.950% 5.216% Details

Rates complements of: Andre Hemmersbach
American/California Financial (310) 713-3100

Los Angeles-area foreclosure rate increases in October
December 10, 2009 2:40 pm

While home prices in the Los Angeles area have steadily increased in recent months, indicating strengthening in the housing market, more and more people are finding themselves falling behind on their mortgage payments, according to a report out today.

In the Los Angeles metro area, the rate of foreclosure among outstanding mortgage loans was 3.69% in October, compared with 1.75% for the same month a year earlier. That compares with a 3% national foreclosure rate, according to data released by First American CoreLogic, which tracks the mortgage market.

Delinquent loans 90 days or more past due constituted 10.9% of all mortgage loans in the Los Angeles area, up from 5.86% during the same month the year before.

Whether a new wave of foreclosures will hit the market next year remains a matter of debate among experts. Some believe a glut of properties could flood in, pushing down prices, while others argue that lenders and the federal government are both determined to keep such a situation from occurring.

Source: L.A. Times by Alejandro Lazo
Photo: Associated Press

Interest rates far from the only answer

2009-12-05T08:32:00.000-08:00

"The miserable have no other medicine but only hope” Measure for Measure by William Shakespeare (Act III, Scene I)

My intension is not to paint a picture of doom and gloom. I remain cautiously optimistic that with conscience and care, we can weather the storm. There are, however those who are quick to say we're in recovery, the worst has past and by this time next year our real estate troubles will be a distant memory. That’s a classic example of ignoring the elephant in the room...The posted article “Low interest rates are no panacea for region's housing” describes a dynamic that exists in hard-hit Inland Southern California. Although interest rates are low there's a lack of inventory creating fierce competition and many buyers are getting frustrated. Builders cannot justify building. Statistics nationally on NOD's and REO's indicate that there should be plenty of inventory, however the manner in which these properties are released on to the market is critical. Too much, too fast and we upset the apple cart, prices freefall again and buyers pull back. It’s been said again and again that low interest, tax breaks and lower home prices have created this surge in buying, but it's not on a solid foundation. As expressed by economist Esmael Adibi (below) until we put people back to work and stimulate other aspects of the economy we're still very much at risk. At this point what's most important is managing the over 7.5 million homeowners who are either at risk or in foreclosure and the banks will ultimately determine how this unfolds. Get it right and we get through the next several months and perhaps 2010 with positive momentum. One can only hope.

Low interest rates are no panacea for region's housing

By LESLIE BERKMAN
The Press-Enterprise

Although the interest rate on a 30-year mortgage is the lowest it has been in almost four decades, it is not the medicine that will revive Inland Southern California's housing market, real estate experts said Thursday.

Mortgage rates for fixed 30-year loans in the U.S. dropped to a record low amid indications the housing market is showing signs of life. A 30-year fixed mortgage fell to 4.71 percent for the week ended Thursday, the lowest since mortgage buyer Freddie Mac began compiling the data in 1971.

The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. The goal of the program is to make home buying more affordable and prop up the housing market.

But Inland experts say a shortage of inventory is suppressing sales of existing homes. Also, the high cost of land that home builders acquired makes it impossible for most of them to construct houses that can sell cheaply enough to compete with the foreclosure-ridden resale market.

"The interest rates being as low as they are today are not promoting more sales because of the lack of homes for sale," said Wil Herring, owner of Mtg Experts in Moreno Valley.

While the rate of mortgage defaults remains high, fewer foreclosed houses are coming on the market, a trend that some experts say reflects an effort by lenders to modify mortgages for financially troubled homeowners and to control the number of foreclosed homes for sale to prop up prices.

Herring said there is "sheer frustration" among would-be first-time buyers who have to compete for the limited number of bank-owned homes, frequently having to make multiple offers and losing out to all-cash buyers.

Chapman University economist Esmael Adibi said the lower mortgage interest rate is a positive development because it makes homes more affordable and will be welcomed by someone who is currently house hunting. But he said it won't be enough to overcome the negative impact of a soft economy on home sales.

"The job outlook and overall economic condition trumps any improvement we will get on the mortgage front because if a person doesn't have a job or is not confident about his or her job, even with the improved affordability, that person will not commit to purchasing a house," Adibi said.

Alan Nevin, director of economic research for MarketPointe Realty Advisors in San Diego, a firm that advises home builders, said lower mortgage rates will do "virtually nothing for new home building because it is not sufficient to cause developers to risk breaking ground."

OVERPRICED LAND

The basic problem, Nevin said, is the cost that developers paid for land -- most likely purchased at the height of the housing boom in 2005 or 2006 -- is "almost higher than what they can sell the homes for."

Nevin said recently he studied the Hemet-San Jacinto area and discovered that most of the sales offices in housing developments were closed because the builders couldn't compete with the resale market. He said significant home building will not occur until the banks resell land in the failed projects at discounted prices to a new group of builders.

"I suspect over the course of 2010 you will begin to see new homes being built in small quantities but not by the guys who built them before," Nevin said.

Bloomberg News and The Associated Press contributed to this report.

Source: The Press-Enterprise Online

More Government pressure on the mortgage industry

2009-12-01T08:43:00.000-08:00

It is certainly unfortunate that some of those with the greatest need are failing to provide the necessary paperwork… Some homeowner’s do not understand the loan modification process, while other are actually opting for a short sale or foreclosure rather than wait out any potential recovery. A two percent mortgage for five years sounds pretty attractive to me!

With the Fed’s forcing the issue perhaps those still waiting for a decision (1/3 of applicants according to the article) will get an answer. In the end, it seems the only real leverage the government has is this dreaded “laggers’ list” that will be made public knowledge in an attempt to shame financial institutions into doing a better job. With 14% of homeowners behind or already in foreclosure it’s going to take a Herculean effort. RD

Homeowners who may be eligible for assistance can call 888-995-HOPE, or visit http://www.makinghomeaffordable.gov/.

Gov't increases pressure on mortgage industry

By ALAN ZIBEL, AP Real Estate Writer
Monday, November 30, 2009

WASHINGTON - Faced with sluggish progress in its foreclosure-prevention effort, the Obama administration will spend the coming weeks cracking down on mortgage companies that aren't doing enough to help borrowers at risk of losing their homes.

Treasury Department officials said Monday they will step up pressure on the 71 companies participating in the government's $75 billion effort to stem the foreclosure crisis. They will start this week by sending three person "SWAT teams" to monitor the eight largest companies' work and requesting twice-daily reports on their progress.

The mortgage companies, also known as loan servicers, have had a hard time getting borrowers to complete the needed paperwork for the administration's loan modification program. Nearly 60 percent of the 375,000 borrowers who qualify to have their loan modifications completed by year-end have either submitted incomplete paperwork or none at all.

"Borrowers must understand the urgency of getting their completed paperwork in so they do not miss out on the opportunity for more affordable mortgage payments," said Phyllis Caldwell, who recently was named to lead the Treasury Department's homeownership preservation office.

The program, announced by President Barack Obama in February, allows homeowners to have their mortgage interest rate reduced to as low as 2 percent for five years.

The administration is feeling intense pressure from lawmakers and consumer advocates to speed up progress. As of early September, only about 1,700 homeowners had finished all the paperwork and received a new permanent loan. About one-third of borrowers who have submitted complete applications are still waiting for a decision.

In an effort to shame the companies into doing a better job, Treasury will publish a list next week of the mortgage companies that are lagging. While big lenders like Citigroup and Wells Fargo have made double-digit gains in the percentage of eligible borrowers they have signed up for trial modifications, other companies like Ocwen Financial and American Home Mortgage Servicing have only increased their borrower participation by 6 percentage points or less since July.

Paul Koches, executive vice president of Ocwen, said his company had already saved 90,000 of its roughly 370,000 distressed homeowners from foreclosure before the government program began. As of October, Ocwen had started trial modifications for 11 percent of its borrowers, up from 5 percent in July.

At American Home, spokeswoman Christine Sullivan said the company has a "large, dedicated team" working on the Obama plan, but also noted that the company modified more than 60,000 loans outside the Obama plan over the past year.

"We are addressing the needs of distressed borrowers and are confident that we are doing all that we can reasonably do to avoid foreclosure," she said in an e-mail.

Some companies have barely made any inroads. HomEq Servicing, a division of Barclays Capital, only signed up in August. As of October, it had only started 91 trial modifications out of a pool of nearly 41,000 eligible homeowners.

"We have solicited thousands of borrowers for the financial information and documentation necessary ... and expect the number of trial modifications to increase substantially in the coming weeks," company spokesman Brandon Ashcraft said, noting that the company has modified 45,000 loans outside the government program over the past two years.

The participating mortgage companies signed contracts earlier this year that give the government the right to withhold incentive payments or end their contracts with Treasury. But mortgage companies don't receive those payments until they make a modification permanent, so there is little leverage over companies that aren't performing well.

That difficulty, consumer advocates say, highlights the program's key flaw: Since participation was voluntary, the government has little it can do besides shaming the industry into doing better.

"There's no meaningful accountability," said Diane Thompson, counsel at the National Consumer Law Center. "If you just aren't doing the loan mods, so what?"

And then there's lender limbo. About one-third of borrowers have submitted complete applications but haven't received a decision.

"In our judgment, servicers to date have not done a good enough job" of making the modifications permanent, said Michael Barr, an assistant Treasury secretary. Companies, he said, "that don't meet their obligations under the program are going to suffer consequences."

Industry executives acknowledge there have been problems.

"The documents were confusing. Borrowers did not understand the process wasn't closed until the documents came in," Sanjiv Das, chief executive of Citigroup's mortgage unit, said earlier this month. "Even when the documents came in, they were not always complete."

Mortgage finance company Freddie Mac has hired an outside company, Titanium Solutions Inc., to send real estate agents around the country to knock on borrowers' doors and help them complete the paperwork.

"It can be a little bit intimidating," said Patrick Carey, Titanium's chief executive. "They don't, in many cases, understand exactly what is being asked of them."

Analysts, meanwhile, say the foreclosure crisis is likely to persist well into next year as rising unemployment pushes more people out of their homes.

About 14 percent of homeowners with mortgages were either behind on payments or in foreclosure at the end of September, a record level for the ninth straight quarter, according to the Mortgage Bankers Association.

Homeowners who may be eligible for assistance can call 888-995-HOPE, or visit http://www.makinghomeaffordable.gov/.

Source: The San Francisco Chronicle

Ten Questions on the Volatile Housing Market

2009-11-25T22:29:00.000-08:00

Great article in today's WSJ. Recommended and MUST read for existing or prospective homeowners… RD

Have a Happy Thanksgiving!

Ten Questions on the Volatile Housing Market

-Lower Prices Have Spurred Home Sales, but Looming Foreclosures and High Unemployment Are Clouding the Outlook-

The U.S. housing market has been in a slump for the past four years. When will it ever end?

In recent years, real estate has proven as jittery and unreliable as any other market. The average U.S. home price nearly doubled between January 2000 and April 2006, according to the First American LoanPerformance index. Since then, the average has fallen about 30%. The drop has been 53% in the Las Vegas metropolitan area and 39% in Miami, where about a quarter of all households with mortgages are behind on their payments or in foreclosure. The value of your home might be determined more by whether the neighbors keep their jobs than whether the house has ample light and closet space.

Here is a guide to navigating a fractured and volatile market:

1. Is the housing market getting better?

It has shown some signs of healing this year, but the much-touted recovery is tentative and fragile.

Home sales have increased from the severely depressed levels of 2008. The inventory of unsold homes listed for sale also is down. Bidding wars are breaking out for foreclosed homes in the sorts of neighborhoods (near jobs and decent schools) that attract both first-time buyers and investors seeking rental properties.

But more than 6.7 million U.S. households with mortgages, or about 13%, are behind on their payments or are in the foreclosure process, according to the Mortgage Bankers Association. Eventually, many of them will lose those homes, sending more supply onto the market. Unemployment has continued to rise, and the housing market is unlikely to show a sustained recovery until job growth resumes.

While the supply of middle-class homes on the market has declined somewhat, it remains ample in most places. And there is a huge glut of high-end houses for sale in many areas. That means prices of high-end homes might still have a long way to fall.

2. When will housing bottom out?

There probably won't be any clear turning point. Monthly indicators, such as home sales and prices, tend to bounce erratically from month to month, making it hard to discern the underlying trend. And the housing bust will end at different times in different places. House prices already might have bottomed out in the coveted Virginia suburbs with short commutes into Washington, D.C., for instance. But it probably will be years before all of the unsold condos find buyers in parts of Florida.

Generalizations about states or metropolitan areas don't say much about what is happening in your neighborhood. In Summit, N.J., known for good schools and an easy, 45-minute train commute to Manhattan, the median home price in September was up 1.2% from a year earlier, according to Otteau Valuation Group, an appraisal company. In Atlantic City, N.J., which suffers from too much speculative building of condominiums and weak demand for vacation homes, the median price is down about 12% from a year ago.

3. What signals should I watch to determine whether my local market is improving?

One way to get a sense of supply is to ask a good local real estate agent for stats on how many homes are listed for sale in your town and how many months it would take at the current sales rate to absorb that supply. Anything over about six months generally is considered high, meaning that sellers might have to cut prices. Another way to get a sense of a neighborhood's health is to count the number of for-sale signs and vacant houses. If there are more than a couple vacant homes in a block, that might be a bad sign, particularly if no one is taking care of them.

The supply of homes listed for sale has fallen very sharply in some areas. But the supply is likely to balloon again in many areas with a renewed surge in foreclosures. Many local newspapers provide information on foreclosure filings.

Demand depends heavily on the job market. The U.S. Bureau of Labor Statistics provides unemployment rates by metropolitan area. In September, they ranged from 2.9% in Bismarck, N.D., to 30% in El Centro, Calif. State and local agencies provide job-market data, too. Celia Chen, a housing economist at Moody's Economy.com, says help-wanted signs can be a useful local indicator; if you start seeing more of them around your neighborhood, that is a sign that business in your area could be starting to recover.

4. How can I figure out the value of my home?

You never know for sure what a home will fetch until you put it on the market, and then it is partly a matter of luck. Will the eager buyer who shares your taste in home style and neighborhood show up on day one or day 200?

Some Web sites -- including Zillow.com, HomeGain.com and Cyberhomes.com -- provide estimates of individual home values. These estimates are largely based on recent sales of nearby homes, and in some cases they are wildly off the mark. But they often provide a ballpark idea of a home's value.

You might come closer to the real value by talking to a local agent and looking at recent prices for homes that you know are very similar to yours. If you want to be more scientific and don't mind paying a few hundred dollars, hire a professional appraiser.

5. Does it matter whether I'm "under water"?

At least you have plenty of company. About 20% of owners of single-family homes with mortgages owe more than the current estimated value of their homes, according to Zillow.com.

If you can afford your monthly payment and don't need to move soon, that might not be a big problem. But it is hard, and sometimes impossible, to refinance a mortgage if you are under water, and you will take a bath if you have to sell the home now. Some people who can afford to make their monthly mortgage payments are deciding it doesn't make sense to do so because they don't expect their home values ever to recover to past peaks, and they could rent similar houses for much lower monthly costs.

6. If I lose my home to foreclosure, how long will it take to repair my credit record?

It probably will be three to five years before you can qualify for a home mortgage insured by the government, depending on your circumstances, and that assumes you have re-established a record for paying your bills on time. The foreclosure will remain a blot on your credit record for seven years, likely raising your interest costs even if you do get another loan. If you pay bills on time, keep your credit-card balances low and don't apply for too many cards, you can make a "slow, gradual improvement" in your credit score, says Tom Quinn, a vice president at Fair Isaac Corp., which provides tools for analyzing credit records.

7. If I'm renting, is now a good time to buy a house?

It may well be. Prices in most areas are well below their peaks, even if they haven't hit bottom. Don't kid yourself that you can time the bottom of the market perfectly. But don't feel any pressure to buy in a hurry, because the supply of housing is likely to remain ample for years in many areas.

Generally, it doesn't make sense to buy unless you expect to remain in the house for at least four or five years, because the transaction costs -- including commissions for real estate agents and mortgage fees -- are heavy.

But now is clearly a good time to rent. Many landlords need tenants badly. The national apartment-vacancy rate in the third quarter was 7.8%, the highest in 23 years, according to Reis Inc., a New York research firm. So landlords are cutting rents and offering such sweeteners as free flat-screen televisions or several months of free rent to retain or attract tenants. Some owners of condos will "cut their throats to get some kind of rental income to cover part of their expenses," says Jack McCabe, a real estate consultant in Deerfield Beach, Fla.

8. Can I get a tax credit if I buy a home now?

Under an expanded and extended program approved by Congress earlier this month, tax credits are available to many people who buy or sign a contract to buy a principal residence by April 30 and complete the purchase by June 30. The tax credit is up to $8,000 for first-time home buyers and $6,500 for people who already have owned a home for at least five consecutive years during the previous eight years. The credit is available for individual taxpayers with annual incomes of up to $145,000 or joint filers with incomes up to $245,000.

9. Can I get a mortgage on attractive terms?

Only if you have a good credit record, a moderate amount of debt in relation to your income and the ability to fully document your income. That last requirement is fairly easy for people who work for a salary and have had the same employer for more than two years, but it can be tough for self-employed people with incomes that vary substantially from year to year.

A borrower with a strong credit score of 740 or higher (on the scale of 300 to 850) and the ability to make a down payment of at least 20% could get an interest rate of about 5% with no origination fees on a 30-year fixed-rate mortgage, says Lou Barnes, a mortgage banker in Boulder, Colo. But if your credit score is 680, the rate jumps to about 5.5%.

People who can't make a down payment of at least 20% generally are being funneled into loans insured by the Federal Housing Administration. That means paying extra fees for the FHA insurance.

Borrowing costs are steeper at the high end of the housing market. For so-called jumbo loans -- those above $729,750 in areas with the highest housing costs or $417,000 in places with the lowest costs -- interest rates on 30-year fixed-rate mortgages last week averaged 5.95%, according to HSH Associates, a financial publisher.

10. Should I invest in foreclosed homes?

Probably not. A lot of investors chase these properties, and only the most experienced know how to deal with all of the pitfalls. Homes auctioned at trustee or sheriff sales are sold on an as-is basis, and there is no provision for an inspection before you take ownership. If after buying you find out that termites have been treating the floor joists as an all-you-can-eat buffet, that is your problem. You must pay for the full price within a day or two, so you need a lot of cash or access to special short-term loans for investors that come with interest rates of around 18%. This is a pursuit best left to people with a lot of time, nerve, cash and knowledge of the local market.

Source: WSJ.com by JAMES R. HAGERTY

Home prices rise for 4th month in a row

2009-11-24T10:12:00.000-08:00

Although this is great news, it does not give a complete picture. Most current sellers need to sell or the property being marketed is bank owned (REO). For those in a position to buy, this is a great opportunity and there certainly will be no shortage of inventory (Short Sales and REOs) during the coming year… Plus the value of standard sales is influenced by the distressed market.

A piece today in the WSJ “One in Four Borrowers Is Underwater“ states that nearly 10.7 million households , or about 23% of homeowners with mortgages had negative equity in the third quarter. It is estimated that more than 520,000 of these borrowers have received a notice of default.

On the bright side, the article goes on to say “Most U.S. homeowners still have some equity, and nearly 24 million owner-occupied homes don't have any mortgage…” Some experts expect values to drop again in the coming year and it’s likely they will. We should definitely see values flat-line or drop over the next month and into Q-1 of 2010 due to the holidays and extension of tax credits to April 30th. My guidance is, if you’re buying a home and you plan to live there for 5 years or more, it’s hard to go wrong at 5% interest. If you don’t need to sell, don’t. Or consider leasing the property if you can. Speculators’ (flippers’) must understand that smart money is buying at a percentage of replacement cost and has the cash to carry if necessary. RD

PS - Also at WSJ.com, check out "Negative Equity by State" chart. California is actually slightly better off than Florida, Nevada and Arizona.

Home prices rise for 4th month in a row

WASHINGTON – The summer's trend of rising home prices is flattening as the traditional home shopping season ends, two reports Tuesday showed.

The Standard & Poor's/Case-Shiller home price index of 20 major cities rose 0.3 percent to 144.96 in September, the fourth monthly increase in a row. The seasonally adjusted index is now up more than 3 percent from its bottom in May, but still 30 percent below its peak in April 2006.

Another reading of home prices published by the Federal Housing Finance Agency held steady from August to September. Analysts expect prices to dip again this winter as foreclosures increase.

"As long as the unemployment rate stays elevated, you're going to see pressure on the pace of foreclosures, which are going to find their way back onto the market, depressing prices," said Dan Greenhaus, chief economic strategist with Miller Tabak & Co.

Home prices are a key ingredient to rebuilding the economy. Homeowners feel wealthier when their property appreciates in value and are more likely to spend money. Rising prices also help millions of homeowners who owe more to the bank than their homes are worth.

Currently, roughly one in four homeowners are in that situation, according to First American CoreLogic.

While prices nationally are likely to keep rising through November, "we are very worried about the potential for a huge wave of supply next year, both from private sellers and banks," wrote Ian Shepherdson, chief U.S. economist at High Frequency Economics. "Prices could easily reverse their recent gains."

Home prices rose in 11 major cities with the strongest gains in San Francisco and Minneapolis, according to the Case Shiller report. Prices fell by the most in Las Vegas and Cleveland.

Compared with a year earlier, the 20-city index was down 9.4 percent, the smallest year over year decline since January 2008.

"With housing remaining an albatross around the economy's neck, nothing would perk things up more than some increases in home prices," wrote Joel Naroff, chief economist at Naroff Economic Advisors. "That seems to be happening."

The price reports came a day after the National Association of Realtors said home resales surged by more than 10 percent in October as buyers took advantage of a special tax credit for first-time owners.

Source: Yahoo! News by ALAN ZIBEL, Associated Press Real Estate Writer

October home sales rise 10.1% from September

2009-11-23T09:04:00.000-08:00

Obviously this is based on National sales and South Bay in general; the beach cities, Palos Verdes Peninsula and surrounding communities are affected to varying degrees as well, however we are somewhat different when compared to the country as a whole. For instance median home value in Torrance alone is $492k, more than twice the national average. You can nearly double that again for Rancho Palos Verdes. There are currently 24 financially “distressed” properties (Short Sale, REO, NOD) listed on the MLS on the Palos Verdes Peninsula and 102 in the western extreme of the area from El Segundo south to the peninsula. RD

October home sales rise 10.1% from September

From the Associated Press
November 23, 2009 7:40 a.m.

WASHINGTON -- Home sales far exceeded expectations last month, surging to the highest level in 21/2 years as first-time buyers rushed to take advantage of an expiring tax credit.

The National Association of Realtors said today that home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September.

The tax credit of up to $8,000 for first-time owners was originally set to run out on Nov. 30, but Congress renewed it earlier this month and broadened its reach. People who have owned their current homes for at least five years can now claim a tax credit of up to $6,500 for a home purchase. To qualify, buyers must sign a purchase agreement by April 30.

The Realtors report on October home sales reflect offers made before buyers knew the tax credit would be extended. "There was a lot of rush and hurry to complete sales" before the deadline, said Lawrence Yun, the trade group's chief economist.

But sales are likely to drop over the winter as buyers hibernate for a few months without the looming tax credit deadline.

The new deadline means that "we're going to see some good activity coming out of the spring," said Pat Lashinsky, chief executive of online real estate brokerage ZipRealty Inc.

Sales, which were nearly 24 percent above last year's level, had been expected to rise to an annual pace of 5.65 million, according to economists surveyed by Thomson Reuters.

The median sales price was $173,100, down 7.1 percent from a year earlier and off 1.6 percent from September.

In addition to lower prices, mortgage rates have been hovering around 5 percent since the spring, largely because of government intervention. That has helped restore housing affordability in large swaths of the country.

The inventory of unsold homes on the market fell about 4 percent to 3.6 million. That's a 7 month supply at the current sales pace, and close to a healthy stock of about six months.

Nationwide sales are up nearly 37 percent from their bottom in January, but are still off about 16 percent from the peak in autumn 2005.

Over the summer, the housing market started to rebound from the worst downturn in decades, aided by aggressive federal intervention to lower mortgage rates and bring more buyers into the market.

But experts forecast that prices will fall again. Most say they will hit a new low next spring, perhaps falling another 5 to 10 percent, as more foreclosures get pushed onto the market.

A record-high 14 percent of homeowners with a mortgage were either behind on payments or in foreclosure at the end of September, the Mortgage Bankers Association said last week. The worst damage is still concentrated in the states hardest hit from the start: Florida, Nevada, California and Arizona. Together, they accounted for 43 percent of new foreclosures.

Source: The Los Angeles Times

Rates on 30-year mortgages remain below 5 percent

2009-11-20T09:30:00.000-08:00

As a point of reference, interest rates on 30-year fixed conventional mortgages went double digit in late 1978 and peaked at nearly 19% in late 1981. It wasn't until early 1986 that rates dipped (briefly) below 10% again and were not permanently in single numbers until late 1990… RD

Rates on 30-year mortgages remain below 5 percent

The Associated Press - Published: Thursday, Nov. 19, 2009 - 8:57 am

McLEAN, Va. -- Rates on 30-year mortgages stayed below 5 percent this week but remained above the record set earlier this year, Freddie Mac said Thursday.

The average rate for a 30-year fixed mortgage fell to 4.83 percent, down from 4.91 percent last week, the mortgage company said. Last year at this time, 30-year mortgages averaged 6.04 percent.

Rates hit a record low of 4.78 percent in the spring, and remain attractive for people looking to buy a home or refinance their existing mortgage. Still, credit standards remain tough, so the best rates usually are available only to borrowers with solid credit and a 20 percent down payment.
The Federal Reserve has pumped $1.25 trillion into mortgage-backed securities to try to lower rates on mortgages and loosen credit. Rates on 30-year mortgages traditionally track yields on long-term government debt.

Low fixed rates in the third quarter led to about $1.1 trillion in refinancing activity, saving borrowers about $10 billion in monthly payments over the first 12 months of their new loan, said Frank Nothaft, Freddie Mac's chief economist.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, frequently in line with long-term Treasury bonds.

The average rate on a 15-year fixed-rate mortgage fell to 4.32 percent from 4.36 percent last week, according to Freddie Mac.

Rates on five-year, adjustable-rate mortgages averaged 4.25 percent, down from last week's 4.29 percent. Rates on one-year, adjustable-rate mortgages declined to 4.35 percent from 4.46 percent.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30-year loans. The fee averaged 0.6 point for 15-year, five-year and one-year loans.

Source: The Sacramento Bee

New $6,500 federal tax credit for 'MOVE-UP' Home Buyers

2009-11-15T09:43:00.000-08:00

If you fit the criteria and are considering buying another house in the coming year, you might want to speed up the process and close by the June 30 expiration date.

Reporting from Washington - Take a close, hard look at the new $6,500 federal tax credit for so-called move-up home buyers that passed the Senate and House recently. Though it's been getting second billing to the original $8,000 credit for first-time purchasers -- now extended by Congress through June 30 -- the $6,500 credit for current homeowners just might have your name on it.

How does it work? When will it be available?

The new credit is available now. It took effect Nov. 6, the day President Obama signed the legislation that created it. This means that if you fit the key criteria -- you've owned and lived in your home for a consecutive five out of the last eight years, and your adjusted household income doesn't exceed $125,000 if you file taxes singly or $225,000 if you are married filing jointly -- you can claim the credit as soon as you close on a qualifying house.

That could be next week, next month or next spring. There is no "move-up" requirement in the new credit. In fact, homeowners who plan to downsize into a smaller dwelling may prove to be significant users of the credit, along with people who are moving because of employment changes.

If you fit the criteria and are considering buying another house sometime in the coming year, you might want to speed up the process and sign a contract by April 30 and close by the June 30 expiration date. Think of it this way: If the government is willing to give you $6,500 to act a little faster than you had planned, hey, why not?

Some other key features of the $6,500 credit you ought to know about:

* Whatever you intend to buy, the house cannot cost more than $800,000.

* The replacement house must become your main home. There is no requirement in the legislation that you sell your current home. You could rent it out, turn it into a second home or list it for sale later in 2010 when prices might be higher. If you plan to retain it, however, make sure that you move into the new house on the day you close so that there is no question it was your principal residence at that time.

* Like the first-time buyer credit, the $6,500 version permits a variety of dwelling types for your purchase. These include new or existing single-family homes, condominiums, manufactured or mobile homes, and boats that function as your principal residence. You cannot claim the credit if you are buying a second home or an investment property.

* The Internal Revenue Service is required by Congress to scrutinize claims for tax credits -- both for the $6,500 and the $8,000 credits -- far more closely in the coming months than it did earlier this year. This is because federal investigators have documented significant instances of fraud -- supposed home buyers who were as young as 4, and "sales" that were fabricated. Investigators also found numerous cases of technical violations, such as purchase transactions among immediate family members, which are prohibited.

The revised rules require taxpayers to submit copies of their settlement statements (HUD-1 forms), along with their requests for credits using IRS Form 5405. Congress' new rules also prohibit individuals under the age of 18 or who are counted as dependents on another taxpayer's filings from claiming the credit.

* Home buyers in 2009 -- those who go to closing after Nov. 6 but no later than Dec. 31 -- can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns. Similarly, eligible buyers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns. Talk to your tax advisor regarding timing decisions.

* If you aren't sure if you can make the deadlines established for the new credit -- a binding contract by April 30 and a settlement by June 30 -- do not assume that Congress will provide another extension. All the political and budgetary signs point the other way, and some of the primary authors of the credit insist that this is it -- no more extensions next year. Take them at their word.

One consumer resource that answers frequently asked questions about both the $6,500 and $8,000 extended credits is www.federalhousingtaxcredit.com, sponsored by the National Assn. of Home Builders.

Source: LA Times.com November 15, 2009 by Kenneth R. Harney

Fannie Mae to allow borrowers in foreclosure to lease back homes

2009-11-09T20:58:00.000-08:00

The mortgage giant's move is part of an attempt by lenders to keep a wave of foreclosed properties from slamming a housing market that has shown some signs of recovery.

Mortgage giant Fannie Mae said Thursday that it would throw a lifeline to some people losing their homes to foreclosure by allowing them to lease those properties back for up to a year at market rental rates.

The move is the latest in a series of steps by lenders trying to manage inventories of foreclosed homes on their books in an attempt to keep a wave of properties from slamming a housing market that has shown some signs of recovery.

The news came as Fannie Mae reported a net loss of $18.9 billion in the third quarter ended Sept. 30, compared with a $14.8-billion loss in the second quarter and a $29.4-billion loss in the third quarter last year.

The latest loss pushed Fannie Mae's government regulator Thursday to request $15 billion from the Treasury Department. It was the fourth time the Washington company had drawn on its federal financial lifeline since Fannie and its sister firm, Freddie Mac, were seized and placed under government stewardship.

By reducing the supply of cheap foreclosures on the market, Fannie Mae's Deed for Lease Program would add to other efforts by the federal government to aid the housing market, analysts said.

Jay Ryan, Fannie Mae's vice president of equity investments, said the program would help to stabilize neighborhoods. The firm said Thursday that the program would qualify only those borrowers who had exhausted other options, such as a loan modification.

"If you keep more people in their homes, it's better for the community, and hopefully fewer vacant homes on the market will help stabilize those communities," Ryan said. "If someone still wants to live in their home, be it for the kids wanting to stay in the school district or the family wanting to remain embedded in their community, this gives them another opportunity."

The program also would allow Fannie to produce some income from the properties -- many worth less than their mortgages, or "underwater" in industry terms -- as it waits for home prices to recover.

"This is a very wise business decision because these loans are underwater, and they are not going to get all of the money," said Richard Green, director of the USC Lusk Center for Real Estate. "Fannie has an incentive to keep the homes reasonably maintained because they are going to want to sell them one day."

Bruce Marks, a housing activist and critic of the lending industry, said the program was a distraction from efforts to push lenders to modify loans.

"Their mission is to provide homeownership and yet now they want to get into the landlord business. It is outrageous," said Marks, executive director of the housing nonprofit Neighborhood Assistance Corp. of America. "The issue has to be to force these banks to restructure mortgages, not let them off the hook."

Fannie didn't say how many homeowners it expected would qualify for the program. To participate, a borrower must agree to convey all interest in a property to the lender. The company recorded 1,996 people agreeing to such a transaction in the first nine months of the year, according to a filing Thursday with the Securities and Exchange Commission. In California, Fannie held $475 billion in loans at the end of the third quarter, of which 5% were "seriously" delinquent.

The home must be a borrower's primary place of residence. A borrower-turned-tenant would have to document that the new market rental rate is no more than 31% of his or her gross income and be released from any subordinate liens on the property.

The efforts mirror a program by Freddie Mac of McLean, Va., which offers month-to-month leases to people who have lost their homes to foreclosure. Tenants must agree to allow the home to be shown to potential buyers and allow the company to market it for sale.

Fannie's program isn't for everyone. Some borrowers would be better off pursuing loan modifications or other solutions.

Scott Hempel, 38, said he was underwater on a home he owns in Riverside but he has kept up his mortgage payments. Hempel, a production manager for Dow Jones&Co. in Dallas, said he was forced to relocate to his new job in October 2007. He tried to sell his Riverside home but the plunge in home values made it impossible. Hempel said he would like to conduct a short sale -- selling the home for less than the value of the mortgage -- but was told by Bank of America that Fannie guidelines required him to be in default.

"I could walk away and do what everybody else is doing, but I am trying to get out of the house without doing that," Hempel said.

To make matters worse, he said, he will lose his $90,000-a-year job as the plant he works at winds down its operations.

A Bank of America spokeswoman confirmed that Hempel was denied a short sale based on Fannie Mae's guidelines.

Complaints that lenders won't negotiate with borrowers unless they go delinquent on their mortgages have been common during the unfolding housing bust and economic meltdown. The loan modification plan sponsored by the Obama administration this year was designed to encourage lenders to reach out to borrowers heading for trouble before they actually defaulted.

Source: LA Times, November 6, 2009 by Alejandro Lazo

Federal Homebuyers Tax Credit EXTEDNDED!

2009-11-06T18:41:00.000-08:00

TAX CREDIT OVERVIEW

Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,

2. Right to obtain legal title upon full payment of the purchase price,

3. Right to construct improvements,

4. Obligation to pay property taxes,

5. Risk of loss,

6. Responsibility to insure the property, and

7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?

Yes. According to the IRS, if any of the following describe a homebuyer's situation, a credit would not be due:

• They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from "step-relatives.")

• They do not use the home as your principal residence.

• They sell their home before the end of the year.

• They are a nonresident alien.

• They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year.(This does not apply for a home purchased in 2009.)

• Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)

• They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

Source: Andre Hemmersbach, Mortgage Planner at American/California Financial Services, Inc. (310) 792-7539

Fannie, Freddie, & FHA conforming loan limit extension law signed

2009-11-04T19:19:00.000-08:00

President Obama late Friday signed a congressional resolution to extend through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California. The resolution was part of a broader piece of budgetary legislation that will prevent a government shutdown.

Both C.A.R. and NAR have long advocated making permanent higher conforming loan limits. As a result of C.A.R.'s and NAR's efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits. Last week's actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.

The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, and the Federal Housing Administration (FHA) can buy or "guarantee." Non-conforming or "jumbo loans" typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.

Source: NAR

Credit account dispute could stall mortgage application

2009-10-29T20:41:00.000-07:00

It sure seems as if there are a lot of tripwires and landmines out there when attempting navigate through the finance market these days.

Many of these measures are established with the best intentions however in the haste to implement safeguards, innocent people suffer and the process of tweaking them is excruciatingly slow... The best defense is to be informed.

Read the piece from the New York Times (below) and if you are working on a mortgage or refinance be sure to check your credit report prior to submitting your loan application. RD

Credit account dispute could stall mortgage application

Fannie Mae and Freddie Mac, seeking to prevent fraud, have been kicking such applications back to lenders for manual underwriting.

Reporting from Washington - Could a little-known and potentially controversial practice by mortgage giants Fannie Mae and Freddie Mac kill or stall your next loan application? Absolutely.
Picture this scenario: You've got outstanding credit scores close to 800 and solid equity in your home. All you want is to refinance your mortgage to take advantage of today's rock-bottom interest rates.

Your application should rocket through your lender's system and get you a great rate. But your bank says: Sorry, we can't do your loan. Fannie Mae's automated underwriting system won't accept any application where there is a notation in the credit report that a consumer has disputed an account or "tradeline."

You explain that the dispute -- over a medical bill or a credit card charge -- was valid. The account was closed. The creditor promised to remove the dispute notation but apparently didn't. Your loan officer won't budge. Policy is policy, he says. Your refi application is dead.

What's going on here? Under the Fair Credit Reporting Act, consumers are guaranteed the right to dispute erroneous information on any account in their credit files. Once a consumer challenges that information, a notation to this effect must be made on the file. As long as it remains, most credit-scoring systems generally will not factor the disputed account into the computation of the consumer's score.

Does Fannie Mae deny loans to consumers simply because they exercised their legal rights? In an e-mail response, communications director Amy Bonitatibus confirmed that the firm's automated underwriting system -- used by virtually all lenders doing business with Fannie Mae -- sends applications with "consumer disputed" items on credit reports back to the lender for what is known as "manual underwriting."

Bonitatibus said the company does "not prohibit delivery of a loan . . . where the borrower has disputed information" on his or her credit report. Through manual underwriting, she said, "our policy requires the lender to determine and document whether or not the disputed information is accurate and underwrite the borrower's credit accordingly."

What's the practical effect of bucking back applications to lenders for potentially lengthy discussions with applicants and their creditors? According to consumer postings on FiLife, a financial education website, the net result often is that the bank brushes you off and blames it on Fannie Mae.

Christopher Cruise, a Maryland mortgage originator and founding member of the National Assn. of Responsible Loan Officers, said, "There's no question -- when there are lots of other applications and business is good," applications requiring extra time and research "just aren't going to move."

Evan Hendricks, author of the book "Credit Scores and Credit Reports" and publisher of Privacy Times, a newsletter that outlined Fannie Mae's policy in a recent report, calls it "extremely unfair to honest consumers who are simply doing what they should -- challenging misinformation."

Freddie Mac's policy on disputed tradelines is broadly similar to Fannie Mae's, spokesman Brad German said.

Why are Fannie and Freddie so uptight about applications with disputed accounts? Mainly because credit repair companies have been gaming automated systems tied to credit scores by disputing accurate but negative items. When tradelines in a consumer's files contain a "disputed" notation, most scoring software ignores them for the purposes of computing the score.
A seriously delinquent account that could legitimately depress a FICO score might be taken out of the equation -- at least temporarily -- if a "consumer disputed" notation is in the file. Fannie and Freddie are trying to protect themselves from fraud.

For the time being, it's tough luck for all applicants with disputes in their credit files.
Fannie Mae, however, says it is reviewing its policy, so maybe there's a chance for a change.

Source: New York Times, October 25, 2009 by Kenneth R. Harney

Greater South Bay Real Estate: Third Quarter 2009

2009-10-24T08:25:00.000-07:00

The bar chart above represents 15 months of Real Estate activity in the Greater South Bay area from July 2008 through September 2009. This is a great representation (in our unique market) of our journey through the leading edge of the sub-prime fiasco, election 2008 and the challenging economy of the first three quarters of 2009.

Inventory is down nearly 57%, however sales and sales pending are up for the period. Granted this is the entire South Bay region and the micro views tell a more accurate tale for individual property owners. There are various factors that have contributed to the recent stabilization of the real estate market. The first-time buyers’ tax credit, low interest rates, depreciation in general and the frenzy to snap up short sales and REOs have fueled the increase in sales and price per square foot in some areas.

Well priced properties are attracting multiple offers while those sellers’ looking to set or guess the upper end of the market sit for months or until the price drops significantly or they retreat from the market. One of the tactics being employed on some sales (especially short sales and REOs) is to list a price well below the median market to encourage a bidding war and drive the upward. In a true eBay auction fashion, if enough buyers are attracted it works. Higher prices are achieved and in certain areas you can see where the price per square foot has inched up over the past few months.

In an effort to control the length of this post I only ran reports on a couple of neighborhoods (below). If you’d like a full report on these or other areas (a full report includes additional metrics not posted, average DOM, PPSF etc.) please contact me with your specific needs.

We are so fortunate to live in this region of the country... As I prepare this blog post, Saturday October 24th most of the country is into or moving rapidly toward cold weather. Here in Southern California the skies are clear, the temperate is predicted to be 80 degrees and so at 2:00 this afternoon I'll be in shorts and a t-shirt at my son's soccer game.

Although I'm a third generation Californian, I've had an opportunity to live in all four corners of the US. Although they all have charm and appeal of one sort or another, I always came back (and consequently wonder why I left). Married now, with two small children my traveling days are over and I now live a stones throw from my parents, who’ve lived in the same house for over 33 years and in the South Bay since JFK was in office.

Although this blog site is new, I’ve been posting elsewhere since early this year and the relative success of that site prompted me to pursue a more mainstream venue. As it does not seem possible to export that content click various posts and links to articles to view past postings. I may eventually re-post some of that content here…

Thanks for reading my blog. MLS Information used to generate charts is deemed to be reliable but not guaranteed.