New Real Estate Blog For San Fernando Valley Real Estate News

If you own San Fernando Valley Real Estate or of thinking of buying in the Valley you should check out this new blog. Loads of information. You can get a Free CMA, search the MLS and read helpful tips. San Fernando Valley Real Estate News

California Senate Leadership seeks to punish homeowners and REALTORS® for opposing $75 recording tax

LOS ANGELES (May 23) – This morning the Senate Appropriations Committee approved Senate Bill 30 (R. Calderon), which would extend existing provisions of state law protecting homeowners from having to pay income tax on a "short sale."  SB 30 is sponsored by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
However, in a surprise amendment, SB 30 was linked by the committee to another bill that REALTORS®, as well the county recorders, assessors and title industry, oppose.  That measure, Senate Bill 391 (DeSaulnier), would establish a $75 per document recording tax to fund an affordable housing trust fund.  C.A.R. is opposing SB 391 because it unfairly adds to the cost of recording real estate documents.  The amendment holds SB 30 hostage to the passage of SB 391.
"Families that are forced to make the difficult decision to sell their home as a short sale are already in financial trouble.  And, that financial trouble may be due to a serious illness and/or loss of employment.  They simply can’t afford to pay an additional tax on money they’ve never actually received," stated C.A.R. President Don Faught.  "I'm outraged -- as should the voters of California -- that the Senate leadership would approve linking the fate of SB 30 to that of SB 391, effectively holding California property owners hostage."
Short sales have become an increasingly important alternative to foreclosure for homeowners "underwater" on their mortgage.  Without special protection, federal and state law would view the debt forgiven by a lender in a short sale as income and, as a result, that “income” would be taxed.  In recent years, state and federal law has been amended to keep this “phantom” income from being taxed, but California protections have not been extended.  Consequently, C.A.R. is sponsoring SB 30.
While SB 391 does not apply to sale transactions, the measure applies anytime a home/property owner records a document (e.g., refinancing, transferring into or out of a trust, liens, quit claim deeds, etc.).  C.A.R. is an aggressive advocate for affordable housing, but believes it is bad policy to fund affordable housing at the expense of home/property owners who need to record real estate documents.  The amendment to SB 30 attempts to extort support for the new tax on homeowners in SB 391.

Top Ten Buyer Mistakes

Fewer Borrowers Are Falling Behind!

In March, for the first time since 2008, the number of U.S. mortgages that were behind on their payments or in foreclosure  fell below the 5 million mark , according to a report released Tuesday.

The number of loans in the foreclosure process fell to just below 1.69 million in March, the lowest level in nearly four years, according to Lender Processing Services. That was down by almost 20% from one year ago. Overall, around 3.4% of all U.S. mortgages were in foreclosure at the end of March, down from 4.2% a year ago.
Foreclosures have been falling because fewer borrowers are falling behind on their payments and because banks have been more aggressive about modifying loans or approving short sales, where properties are sold before the bank completes foreclosure.
Another almost 3.31 million loans were behind on their payments in March, with around 1.47 million of those that had missed at least three payments. The level of delinquent loans was down by 3% from a year ago, with around 6.6% of all borrowers in some stage of delinquency, excluding those in foreclosure.
Delinquencies tend to fall in March because homeowners use year-end bonuses and tax refunds to help catch up on their mortgages.
Before the housing crisis, around 5% of borrowers were delinquent on their mortgages and another 1% of loans were in foreclosure. The latest data show that while delinquencies and foreclosures are moving in the right direction, it’s probably going to take a few more years before delinquencies and foreclosures get back to pre-crisis levels.

By Nick Timiraos

Follow Nick @NickTimiraos

Realtors Help Keep Your Property Taxes Down.

Coalition of Los Angeles REALTOR^® Associations Keeps Transfer Tax Increase Off the Ballot — February 2013
Last spring, when the City of Los Angeles proposed solving its $230 million fiscal year budget deficit by doubling the documentary transfer tax rate to $9 per $1,000 of assessed value, REALTORS® took action – fast. Eleven REALTOR associations covering the Los Angeles metropolitan area put together a coalition – 25,000 REALTORS® in all – to mount a successful campaign against the proposed transfer tax increase. And, by the way, they offered a viable alternative for raising the needed government funds. Using their own resources, along with funding from the California Association and NAR’s Issues Mobilization program, the coalition conducted polls, drafted alternative policy language and distributed effective mailers, which helped to get the transfer tax proposal off the March ballot.

Los Angeles Homes Prices On The Rise

Zillow predicts that home prices in the Los Angeles area are set to rise moderately over the next year. A report released by the website Tuesday found that home prices have risen 2.7% over the last year in the Los Angeles metro area -- which consists of Los Angeles and Orange counties -- to hit $397,000 by the end of the third quarter.
The website called a bottom for the Los Angeles area in the first quarter of 2012 and expects home prices to increase 3.5% throughout the region over the next year, according to its report.   If you have been thinking of owning your own home now is the time to jump off the fence. Interest rates are still low but prices are going up.

Bank Of America Makes Short Sales A little Faster

Bank Of America recently announced it will begin to use additional methods to determine property values in an attempt to streamline the short sale process and reduce cycle time.  As of mid-October, different valuation methods that do not require access to the property will be implemented on some transactions.  This will reduce the time frame for the valuation stage from several weeks to a few days.

Think that selling short is the answer for you. Call me and let me help you through the process free! You don't pay me, the bank does.

Prices In Los Angeles Are On The Rise!

Zillow.com predicts that homes prices in  Los Angeles and San Fernando Valley area are on the rise.
Zillow reported that home prices have risen almost 3% in the past year and expects prices to increase 3.5% over the next year.

Freddie Mac says that  interest rates moved  lower this week with lenders offering 30-year fixed-rate home loans 3.39%.

Me thinks NOW might be the time to buy!!!!!

End Is Nigh For Certain Tax Exemptions

Currently, any debt forgiven by a lender in a short sale, loan modification, or foreclosure is
exempt from federal taxation. However, that exemption is scheduled to expire Jan. 1, 2013.    Borrowers will have to count mortgage relief from lenders as income on their federal tax returns, if the exemption is allowed to expire. That means, for example, a borrower
would have to pay taxes on a $100,000 reduction in principal owed on a loan, or a
$20,000 write-off in the amount owed after a short sale.

 An extension of the tax exemption – established under the Mortgage Forgiveness Debt
Relief Act of 2007 – is a strong possibility. But given that Congress will have to grapple
with serious fiscal issues after the November elections, there is no guarantee the
exemption will emerge from those negotiations intact.

 The Debt Relief Act exemption applies only to canceled mortgage debt used to buy,
build, or improve a primary residence, not a second home. The maximum exemption is
$2 million.

 Reinstating the tax would undercut the the effect of the National Mortgage Settlement
reached earlier this year in the federal government’s investigation into banks’
mishandling of foreclosure documents.

 Under the terms of the settlement, five of the biggest mortgage lenders must put some
$17 billion toward debt relief that enables borrowers to stay in their homes. Smaller
portions are reserved for short sales and refinancing.

For More Info Visit San Fernando Valley Short Sales & Foreclosures

Home prices signal recovery may be here

The S&P/Case-Shiller national home price index, which covers more than 80 percent of the housing market in the United States, climbed 6.9 percent in the three months ended June 30 compared to the first three months of 2012.

"Brace yourself real estate prices are going back up! House prices, after falling for more than five years, are rising again. All the major sales-price indexes show that there have been modest national increases in recent months, even after adjusting for seasonal patterns. "
Click Here To Read More

Reverse Mortgage

Thinking about taking a reverse mortgage out on your home? Make sure you understand the ins and outs before you sign on the dotted line. Reverse mortgages can be very complicated and their are lots of bad people out there waiting to take advantage of you. The Consumer Financial Protection Bureau has put together a report that is a must read if you think a reverse mortgage is the answer to your problems. To read the report CLICK HERE

There are more than 2,200 Short Sale Properties available in the San Fernando Valley Right Now. Some for as little as $60,000. With an experienced agent to guide you through the, sometimes mind numbing, proceedure and a loan broker to help you get the best financing available you could be in your new home before summer.

Click Here and see if any of these properties feel like home. If none of these work or you just dont want to deal with the head-aches that go along with a short sale, contact me, I will help you find that perfect place to call home.

The price of a “no-cost” loan......

The New York Times

Some home buyers who may be concerned about paying high closing costs might be tempted by a “zero-cost” or “no-cost” loan option, which requires no cash outlay, but typically adds a half percentage point to the rate. However, some financial consultants say these loans tend to be most beneficial to buyers planning to have the loan for less than five years.
KEEP THIS IN MIND
• One of the primary differences between a no-cost loan and similar loans is that no-cost loans do not tack on closing costs to the balance, but instead increase the rate.
• With no-cost loans, third-party fees including the appraisal, credit report, title insurance, recording, and the use of a mortgage broker are paid by the lender. The fees, including the amount the broker is being paid, are disclosed on the closing statement.
• Home buyers who bypass a broker and work directly with a lender may encounter less transparency, as loan officers are not required to disclose the amount the bank is making on the loan.
• Borrowers weighing their loan options are advised to use a mortgage amortization calculator to compare the costs for a conventional loan compared with a no-cost loan. The Federal Reserve provides an amortization calculator on its Web site at www.federalreserve.gov.
Read the full story:
http://www.nytimes.com/2010/10/24/realestate/24mort.html?ref=realestate
Oct.

Home Prices In Los Angeles Expected To Rise

After two years of gains, home sales in California are expected to fall 10 percent this year but prices should continue to rise.

The California Association of Realtors expects 492,000 sales this year, compared with 564,500 in 2009. C.A.R. predicts that sales activity will rise next year to 502,000 as the recovery regains momentum.

Sales increased by 27 percent in 2008 and 24 percent in 2009 after two sharp years of declines as the real-estate market collapsed.

"We have had weaker economic activity in the second half of this year as we have weaned ourselves from the federal government stimulus programs," Robert Kleinhenz, the association's deputy chief economist, said during a conference call.

The Los Angeles-based trade group expects next year's median to grow a modest 2 percent to $312,000.

The increase follows price decline of 38 percent in 2008 and 21 percent in 2009. Los Angeles County market should closely track the state, Kleinhenz said.

There were 60,000 home sales in the county last year and they should fall 24 percent this year, due in large part to the end of the federal tax credits. Modest gains should return next year, Kleinhenz said. The median price is on track to increase 5 percent this year and make a similar gain next year, Kleinhenz said. There was also word on Monday that the nation's residential housing market remains under pressure. The National Association of Realtors said that its index of sales agreements for previously occupied homes rose 4.3 percent to a reading of 82.3 in August. That's still more than 20 percent below the pace in the same month a year ago. "With underlying economic conditions still so weak, a robust housing recovery remains highly unlikely," Paul Dales, U.S. economist at Capital Economics, told the Associated Press.

$4,000 Grant !!!!!!

If you are a first-time home-buyer who is a police officer, sheriff’s deputy, firefighter, California Highway Patrol officer or emergency medical technician, the $4,000 grant program for public safety responders is still going and funds are still available. There are only a limited number of grants available, so don’t miss out! For more information call Heather at 818-388-2743

How Far Will They Go?

Lenders’ data mining goes deep. Mortgage makers are going beyond tax returns and bank statements to determine whether you’re a good risk. They’re checking such things as where you have pizza delivered and where you shop online.

Click Here To Read The Entire Los Angeles Times Article

Will You Have To Repair Your Broken Sidewalk Before You Can Sell Your Home?

A year ago I posted about the Mayors Big Plan Could Cost You $7,000! Mayor Villariago wants to take the burden of fixing 4,600 miles of dangerously broken city sidewalks from the city to property owners. The plan is to make it mandatory at the point of sale – Good idea Mr. Mayor, make it even harder and more expensive to sell your home - ever heard the expression "Timing is everything". Villariagosa has recommended in his 2009-2010 budget that the burden of repairing sidewalks land squarely on property owners whenever a home is sold. Click here for the details and information on how to stop this very expensive change. Well IT'S BACK!!!!

CONTACT YOUR COUNCIL MEMBER NOW!!!

The city of Los Angeles may soon stop fixing our broken sidewalks and put the cost squarely on the shoulders of the homeowner. Hmmmm...if the homeowner is responsible for fixing them are they also responsible if someone trips and falls because it wasn't fixed? Will it become another added expense when you want to sell your home?

Fast Facts From The California Association Of Realtors

California median home price - July 09: $285,480 (Source: California Association of Realtors.)
California highest median home price by California Association Of Realtors region July 09: Santa Barbara So. Coast $885,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 09: High Desert $110,650 (Source: C.A.R.)Calif. First-time Buyer Affordability Index - Second Quarter 2009: 67 percent (Source: C.A.R.)Mortgage rates - week ending 8/27/09 30-yr. fixed: 5.14% Fees/points: 0.7% 15-yr. fixed: 4.58% Fees/points: 0.7% 1-yr. adjustable: 4.69% Fees/points: 0.6% (Source: Freddie Mac)

Fast Facts From the Callifornia Association Od Realtors

Calif. median home price - May 09: $267,570 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 09: Santa Barbara So. Coast
$875,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 09: High Desert $106,210 (Source: C.A.R.)Calif.
First-time Buyer Affordability Index - First Quarter 2009: 69 percent (Source: C.A.R.)Mortgage rates - week ending 7/16/09
30-yr. fixed: 5.14% Fees/points: 0.7%
15-yr. fixed: 4.63% Fees/points: 0.7%
1-yr. adjustable: 4.76% Fees/points: 0.5% (Source: Freddie Mac)