Sellers waiting for prices to rise

The title above links to an article from Wall Street Journal.  It discusses "side-lined" sellers, who want to sell but want to wait for home prices to rise even though they may already have equity.  At this point, since our inventory continues to grow here in the San Fernando Valley, I don't think price rises are likely -- at least not until the beginning of 2011, if then.  Thanks, Kendyl; your "tweet" that alerted me to this article.

Burbank low flow toilet and water saving devices -- new rules from Burbank city council

This week, Burbank city council passed new water saving retrofit requirements.  Burbank will now require low-flow toilets and other water-saving devices in every home, just like the city of L.A..  These will need to be installed when a residence sells or otherwise changes hands.  Here's the article from the Burbank Leader.  On behalf of our clients, we Realtors have opposed this due to the cost, hassle and dubious actual water savings, but see the 2009 video above -- Dave Golonski, for one, did not care what Realtors think.

Short sales in Burbank, Studio City and the east San Fernando Valley: new HAFA program details

I've just posted details about the new Home Affordable Foreclosure Alternative (HAFA) program on my website's short sale page. Here's a slightly edited version:


The new HAFA program revamps the short sale market.  In 2009, the Treasury Department introduced the HAFA program to provide a viable short sale option for homeowners who are unable to keep their homes through loan modification -- the Home Affordable Modification Program (HAMP). The goal is to reduce the number of foreclosures by incentivizing banks to pursue short sales instead of foreclosures. And yes, the devil will be in the details.

Here are some of the differences between HAFA and the way short sales have been previously handled by lenders and borrowers.

• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.  A borrower will no longer have to submit a second package if they have already submitted a complete first package.
• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).  This is huge for both the borrower and the real estate agent as we’ll now know the minimum the bank will accept.
• 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 standardized documents, processes and timeframes/deadlines.  There should be no difference now between the way, say, BofA handles a short sale as versus Wells Fargo.
• Mortgage servicers are required to make a preliminary decision regarding allowing the short sale within 15 days of receiving a borrower’s completed package!  We’ll see if the lenders institute enough internal procedures to guarantee that this holds up.
• 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.  In other words, the Treasury will match one dollar to each two dollars the first mortgagor gives the second mortgagor, up to $6,000.  However, 2^nd mortgages are still “the elephant in the room.”
• Requires loan servicers participating in HAMP (the loan modification program) to implement HAFA in accordance with their own policy and investor guidelines. (Remember, the lender’s main concern is not the borrower.  It is the lender’s investor.) What constitutes investor guidelines? It includes factors like total potential loss, local market conditions, timing of foreclosure actions, etc.

Here are a couple of links that you may find useful:

www.makinghomeaffordable.com/contact_servicer.html.
Home Affordable Foreclosures Alternatives Program: Guidelines and Forms 

Tired of links to outside sites in responses to my posts? Me too.

Ray and Al, this doesn't apply to you.  Lately, I've noticed that I'm getting a lot of responses that just have links to products, services and vendors and don't have anything to do with the post.  Rather than set this blog up to approve all posts beforehand, I'm just going to delete some of the worst offender posts, such as the "Shooting in Burbank" post.  You guys have already read it anyway, right?

My Toluca Lake short sale closed!

If you're a regular reader of this blog, you may have been following my "how my short sale is going" posts for 10862 Bloomfield #103 in Toluca Lake.  IT CLOSED! 

Last Monday, Chase, the lender, finally sent the approval letter to me.  It had been a little over 4 and 1/2 months since the short sale package plus offer was submitted to Chase.  While we had verbal approval at the end of May, it just took forever to get Chase's letter -- and you can't close a short sale transaction without having an okay from the lender in writing.  Since the buyer was paying cash, we -- meaning, mostly, the escrow officer -- was able to slam this shut on Friday. (Paying cash is a much faster transaction than getting a loan.)  We had worked in advance with both buyer and seller and had all disclosures and other contractual items reviewed and signed off in June.

A couple of details.  Yes, there were two loans.  Both, however, were with Chase, so Chase just wrote the 2nd off.  The seller/borrower was still current on her HOA payments and mostly current on her taxes, and there were no other outstanding liens against the property.  The seller could definitely prove her hardship, as she was denied a loan modification in 2009 and was laid off this year.  Since I represented both the buyer and seller, the commission was cut in half.  Bah.  But it's closed now and everybody is happy.

Open Sunday 2:00 to 5:00: 4552 Morse Ave., Studio City

Beat the heat by checking out my lovely, airconditioned listing at 4552 Morse in Studio City.  We'll be open 2:00 to 5:00 pm.  This is a truly lovely home in a fabulous neighborhood.  More info can be found on my website at JudyGraff.com.

California real estate tax credits may still be available!

Check this out from Cyberhomes.com's blog: http://www.cyberhomes.com/content/blog/10-07-14/california-home-tax-credit.aspx.  If you've purchased a home in California this year, there may still be time to claim the credit.

New "HAFA" short sale conditions

"HAFA" stands for Home Affordability Foreclosure Alternatives and it's the latest set of short sale rules to come along.  These will be implemented by most loan servicers on August 1, 2010.  We Realtors have been strongly encouraged by our brokerage management to get up to speed on the new rules.  I'm currently on module six of an eight-module webinar.  So far, it certainly looks like the devil with be in the details, but here are two things I know now:

• Paperwork and timelines will be standardized;
• The short sale process will be shorter.

I'll have more info as I become more educated.  I'll also be updating my Short Sale and Foreclosure page on my website very soon.

How my Toluca Lake condo short sale is going, Chapter 4

If you're a regular reader of this blog, you may recall posts about my short sale with Chase bank.  I rep both the buyer and the seller on this Toluca Lake condo, and we had a complete package (all seller financials, all buyer financials, offer, etc.) submitted at the end of February.

Anyway, we finally had a negotiator assigned in May, he asked for a few more pieces, and verbally told me at the end of May that we were approved for the short sale purchase.  Yay!  Time for dancing in the streets!

Note the word "verbal." Even the negotiator has to kick things upstairs for a final sign-off and that department issues an approval letter.  Nothing can happen until the letter is received by seller.  The negotiator has expected the letter any minute -- for the last five weeks. 

One thing did happen.  After three weeks of waiting, "upstairs" kicked the approval out unless I agreed to halve my commission.  What's a Realtor to do?  Unhappily, I agreed of course.  And we got reapproved.  Verbally. 

Then, no letters could be issued at the end of June or the beginning of July because it is the end of the fiscal year and all Chase employees had other responsibilities.

So we're still waiting for the letter.  Seller, buyer and escrow are ready to close.  Jay, my Chase negotiator, and I talk every day re status.  I have his number memorized.  I know the names of his kids. 

To be continued.

Huge reduction on overpriced Glendale condos

The Excelsior at Americana has just reduced prices on all of its condos.  High time.  Prices used to run $842,000 to $1,124,000 for units from 1,338 sf to 1,529 sf.  Oh, yes, that's right -- they did have a view of the common area.  Was there really a market clamoring for condos at that price point in Glendale?  Are there really lots of buyers who wish to live over a shopping mall (actually, that might be fun) and pay a premium on Glendale real estate to do so?  Anyway, the prices are now $585,000 to $695,000 -- still high, but not out of line with prices on condos in the area. 

Models as real estate agents?

Somehow, I just don't think this will work quite as well here in the San Fernando Valley as it does in NYC.

Short sales, Fannie Mae and HAFA

Fannie Mae's New HAFA Program

As you may have heard, by August 1, 2010 Fannie Mae and Freddie Mac, the formerly Home Affordable Foreclosure Alternatives Program (HAFA) exempt mortgage giants, are set to implement their own HAFA programs. For borrowers who are eligible for the Home Affordable Modification Program (HAMP) but were unable to secure a Loan Modification on their Fannie or Freddie loan, this is potentially promising news.
Today we’ll examine Fannie’s recently released HAFA Program Summary. Their stated goal with joining the program is to provide financial incentives for and simplify the process of short sales and deed-in-lieu (DIL) options in the face of foreclosure. For the most part, the Fannie version is in line with the wider HAFA program which includes the following:

• Any borrower who wishes to utilize the new program must have already been evaluated for HAMP, which gives them more options in the event of an unsuccessful evaluation and also removes the need for further eligibility investigation as the HAFA program will use the HAMP documentation. In addition, the program standardizes the steps, documents, and timeframes of short sale or DIL approval;
• Before the property is even listed, the borrower will be able to get pre-approved short sale terms;
• The servicer cannot condition their approval of a short sale on a reduction of the real estate commission outlined in the listing agreement;
• Fannie will release those who are successful in a HAFA short sale from future liability for the debt, and;
• Servicer and borrower will be entitled to certain incentives:
• Servicers will receive a $2,200 fee for a short sale, or a $1,500 fee for DIL
• Borrowers will receive $3,000 to assist with relocation expenses

Fannie’s documents and a full Program outline can be found at their website. Given the amount of foreclosures Fannie has been aggressively pursuing across the country (even being known to refuse to postpone a trustee’s sale with a viable short sale offer before them), one might be forgiven for questioning the sincerity of their commitment to providing foreclosure alternatives.

What does all this mean? I will be obtaining a HAFA certification through California Association of Realtors soon and I'll let you know then.  Thanks, Activerain, for providing this blog post.

Celebrate the 4th of July

Eager to watch fireworks on the fourth? Here’s a list of east San Fernando Valley displays and celebrations.

Annual San Fernando Valley Independence Day Celebration
A holiday celebration in the San Fernando Valley featuring music and other live entertainment, food, and fireworks. Take a swim(eww! or, uh, maybe not) in the 1.5-acre swim lake available for use during the day.
When: July 4, 10 am – 10:00 pm
Where: Hansen Dam Recreation Area, 11770 Foothill Blvd., Lake View Terrace
Cost: Free
Info: 1-888-LA PARKS (527-2757), www.laparks.org

Studio City - This is a fun-filled (and relatively expensive) family festival featuring exhibits, music, food, fireworks, a children’s fun zone, and a business exposition is held on the back lot at CBS Studios.
When: July 4, 5:00 – 9:30 pm, gates open at 4:30 pm
Where: CBS Studio Center, 4024 Radford Ave., Studio City, Los Angeles
Cost: Adults $15 advance, $20 at the gate, Children 6-12 $8 advance, $10 at the gate, add $20 for rooftop viewing access or pay $100 for VIP tickets.
Parking: Free
Info: 818-655-5916, www.studiocitychamber.com

Burbank, CA -  Burbank’s annual firework display and Starlight Bowl concert is one of the city’s favorite traditions. This concert kicks off the Starlight Bowl Summer Concert Series. On July 4, gates open at 6:00 pm, entertainment runs from 6:30 - 9:00 pm, and the fireworks show follows at 9:00 pm (weather permitting). This year, the Burbank Philharmonic Orchestra will kick off the concert, which always features crowd favorite music and sing alongs. You can purchase your tickets online. Tickets cost between $10 - $20 each, with discounts available for seniors and students.

Just want fireworks? Do as we do – just pull up a piece of curb anywhere on the residential streets of the Burbank Benmar hills.  Best viewing is around Cambridge and Sunset Canyon.  Get wherever you’re going early, though – thousands of people do this every year and parking along the city streets gets quite tight.

Toluca Lake – Every year, the Lakeside Golf Club (4500 Lakeside, Burbank) has a terrific fireworks display that you can enjoy without being a country club member.  Just pull up a piece of curb on a residential street around the lake.  As in Burbank, this is quite popular, so get to the neighborhood early for best position and viewing.

845 N. Frederic, Burbank just closed

This adorable house is 845 N. Frederic in Magnolia Park and it was just bought by my clients, the Jordan family.  Their picture can be found on my website on the Our New Home page.   The sale closed Friday for $629,000.  The escrow went smoothly all the way through.  Bank of America even closed the loan right on time!  The sellers purchased an out-of-area short sale.

Uh-oh.

Although the sellers' short sale purchase has received  verbal approval from the lien-holders, it still does not have that all-important written approval.  So the sellers are renting back from the buyers for two weeks while they wait for the bank to get its act together.  We are all hoping that they don't have to rent back for longer.  Cross your fingers.

Burbank Green Alliance is launching Burbank’s First-Ever Eco-Conscious film series

The Burbank Green Alliance is hosting a monthly environmental film series.  The first free screening is of  "The End Of The Line" on July 14, 2010 at 7:00.  The film's synopsis is: "Learn how responsible choices will save our oceans and seafood industry." How timely, eh?  The screening will be at Woodbury University, 7500 N. Glenoaks Blvd. Reservations: $10 suggested donation (reservations/donations aren’t necessary but always welcome). For more information please visit http://www.burbankgreenalliance.org/.  Here's a tiny url for the flyer/invite: http://bit.ly/aBiLT8.

Mark your calendars for this Sunday open house

I'll be holding 4552 Morse, Studio City open this coming Sunday, June 27, from 2:00 pm to 5:00 pm.  More info and pictures can be found on my website, but this gorgeous 2+1 features a remodeled kitchen and bath, gorgeous hardwoods, a/c, a walled front patio, big back yard with two entertaining areas, and lots more.  List price is $659,000. 

Interest rates are terrific

If you're searching for Studio City homes for sale (and if you are, please check out 4552 Morse), or Burbank real estate, or Toluca Lake real estate, or any other real estate, here's a news flash.  Interest rates have gone down again!  For 30-year fixed mortgages, they are now at 4.5% + 1pt for conforming, 4.625%+1 pt for conforming high limit, 5.5%+1 pt for jumbo (over $729k) and 4.0% + 1 pt. for 15 year mortgages.  We all thought we'd see higher interest rates by this time this year.  What a nice surprise.

Another reason to love the Valley

...It's free of Laker championship violence.  We only riot when our teams lose.  I know what you're thinking, "But Judy, it takes a certain city je ne sais quoi to rampage through an area when your team wins." Fair enough, but that's one less call we need to make to our insurance companies the next day.

Just saw a really pretty house

I don't usually gush, but: 537 E. Fairmount, in Burbank, just came on the market at $779k.  Here are the stats: 3 beds, 3 baths, 1800+ sf, 10,000 sf. lot, updated kitchen and baths, a/c, great neighborhood.  And it's absolutely lovely -- it's one of the nicest houses I've seen lately.  Feels much bigger than 1800+.  You can find more pics by going to my website (JudyGraff.com) and clicking on "search the mls."  Nice listing, Laureen and Doyle!

LAT says home prices surge 22.5%

I was wondering when the stats would be out, so thanks, LA Times.  However, this week we're seeing a bit of a slow down in the areas where I work.  Hmm.

Southern California median home price surges 22.5%

The May increase to $305,000, compared with the year-earlier level, mostly reflects a rush by buyers to take advantage of federal and state tax incentives, MDA DataQuick reports. It's the first time in 20 months the figure has topped $300,000.


The Southland's housing market surged in May, with the median home price soaring 22.5% from its year-earlier level as federal and state tax incentives for buyers ignited sales, a real estate research firm reported Tuesday.

The median price hit $305,000, topping $300,000 for the first time in 20 months, according to MDA DataQuick of San Diego. That represented a 7% jump from April.

The increase in prices reflected less a jump in the actual valuation of homes than a continued shift in the region's sales mix, with fewer homes selling in the Inland Empire and an improvement in pricier markets in San Diego and Orange counties, DataQuick said.

The jump also reflected the steep decrease in the number of foreclosures, which tend to drag prices down because those homes often sell at a big discount.

A total of 22,270 homes sold in the Southland last month, a 7.2% jump from May 2009 and a 9.7% increase from April. Sales last month hit their highest level for a May since 2006.

MDA DataQuick reports its sales figures as contracts close, and the sales surge last month probably reflected a rush of buyers finalizing deals in anticipation of grabbing a federal tax credit for buyers.

The federal credit of up to $8,000 for first-time buyers and up to $6,500 for some current homeowners expired April 30, but those hoping to get the credit must close their deals by June 30. Experts worry that once the effects of the credits diminish, the sales pace will slow and prices could slump again, particularly if interest rates rise.

Also fueling the local market is a separate state tax credit for first-time buyers and those purchasing new homes. The California credit took effect May 1 and provides up to $10,000 over a three-year period for buyers who qualify.

alejandro.lazo@latimes.com

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