Tuesday, September 30, 2008
Sunday, September 28, 2008
The owners/sellers were originally from the East coast. She was a stay-at-home mom, and he was a top executive at a prominent local institution. They didn't really like Burbank and were thinking of returning to the East coast. They had owned the home for about two years and had done some nice upgrades to it. I told them that I thought I could get about a maximum of $700,000 for the house. They were unhappy with that price and believed the house should sell for much more.
The house is now on the market with another Realtor, nine months later, for $499,000. It is a preforeclosure short sale. The neighbors tell me that it has been vacant for a couple of months.
It appears that these folks just walked away from their home and mortgage. Knowing what I know about the sellers, I don't believe there was significant financial hardship; they just didn't want the house anymore and couldn't sell it for what they paid for it. So, they're sticking the bank with the tab, and lowering their neighbors' value/equity in the process.
This price is significantly low for the excellent neighborhood. The house may draw multiple offers and go for over the $499k; I hope so for their neighbors' home value sake.
Friday, September 26, 2008
- Visit the home page of my site at http://www.judygraff.com/. Click on the "select page" box at the top right-hand corner for a drop-down menu.
- Scroll down to MLS Map Search and click. You'll be taken to a new page.
- Click on the link and have fun searching.
Of course, you can still conduct a standard property search from my site, as well. Just click on the "mls search" button at the left on the home page.
Thursday, September 25, 2008
Not anymore. Now, most borrower/buyers will not qualify for any loan if they own their current residence and it has not been sold yet. Why? Because their debt-to-income ratios are likely going to be too high for the banks' taste. So if you own a home and are thinking about moving up, or moving down, or whatever, put your current house on the market now and make any sale "subject to sellers finding home of choice and successful close of escrow of same."
Lending guidelines are changing by the day, so this may change as well.
Monday, September 22, 2008
I'm no economist, but hasn't this been tried many times before? Specifically, with the "negative amortization" loans that were so popular for so many years? Most folk with "neg" loans wound up owing more several years down the line than they did at the beginning of the mortgage. I guess I'd have to see one of these "continuous workout mortgages" in action before believing that this could work.
Thursday, September 18, 2008
Tuesday, September 16, 2008
Friday, September 12, 2008
However, there seem to be very few new listings during the past couple of weeks. Inventory is getting shorter, which is partly seasonal, but not a good sign for buyers.
Tuesday, September 09, 2008
Now, lenders are easing up. Yes, there are still lots of appraisal reviews, but that's happening as a final condition before loan funding, and usually don't involve an actual second appraisal. This is great news as it removes yet another stumbling block from the process. Oh, more great news: interest rates are back below 6%. I don't know how long they'll stay that way, though.
Monday, September 08, 2008
Burbank Public Works has just sent out a terrific, 8-page brochure on recycling and environmental sustainability projects in Burbank. The brochure includes a profile of the recycle center, info on what's recyclable in Burbank, tips for "greening up" summer parties, the last laws, refund values of bottles and cans, info on city green workshops (call the Burbank Recycle Center for details at 818-238-3900), info on the Sustainability Action Plan, ideas for natural landscaping and more. If you'd like a copy, please phone 818-238-3900. Way to go, Burbank!
Friday, September 05, 2008
Tuesday, September 02, 2008
Sorry that I haven't posted for a few days -- I've been wrapped up in our national political circus. Anyway, the L.A. Times reports here that the city of Lancaster is going to buy foreclosed homes, fix them up, and sell them to low income people. As we all know, Lancaster has pretty much been ground zero for L.A. County foreclosures. In the main, I think this is a very good thing. Philosophically, I think this is how a small municipality should be handling this problem.
Of course, the devil is in the details. The program has $4.1 million in funds and hopes to fix/resell up to 41 homes. So, that's about $100k per home, which includes the purchase price. If the purchase price is $80k to $100k, that's, uh, not a lot left over for more than a cosmetic fix. But this program is a step in the right direction. And many people will be happy that the money is coming strictly from the City, not from the state, county or federal government. Let's stay tuned and see how it goes.