Los Angeles Times

Obama’s standardized short-sale plan could help troubled homeowners The U.S. Dept. of the Treasury recently announced the Home Affordable Foreclosure Alternatives Program (HAFA), which provides instructions for lenders and servicers participating in the Making Home Affordable Program and Home Affordable Modification Program (HAMP). The purpose of HAFA is to create an alternative to foreclosures for homeowners unable to successfully modify their troubled mortgage under HAMP, and to streamline the short-sale process. KEEP THIS IN MIND • A short sale is when the lender agrees to accept less than the amount owed on the mortgage instead of foreclosing. Many homeowners and REALTORS® have expressed their frustrations in the short-sale process, criticizing lenders for the amount of time it takes to process and approve a short sale. The CALIFORNIA ASSOCIATION OF REALTORS® listened to members’ concerns, worked with other industry groups, and responded by helping to create provisions to streamline the short-sale process. • The HAFA program simplifies and encourages short sales and deeds in lieu of foreclosure. It will permit pre-approved short sale terms before a property is listed; release borrowers from future liability for the debt; provide financial incentives to borrowers, servicers, and investors; and prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval. • Under terms of the program, the borrower and/or listing broker have three business days to submit an executed purchase offer and related documents to the servicer on a short sale, and the servicer has 10 business days to respond to an executed purchase offer. • The servicer also will determine the minimum net proceeds for a short sale. If an offer presented to the servicer by the borrower or listing broker meets the net proceeds requirement, then the servicer must accept it. • The program currently is available only for non-Fannie Mae- or Freddie Mac-owned loans up to $729,750 and is scheduled to take effect April 5, 2010. However, C.A.R. expects that many lenders will choose to implement it before the deadline. To read the full story, please click here: http://www.latimes.com/classified/realestate/news/la-fi-harney13-2009dec13,0,4531315.story

Los Angeles Times

As home values have declined, a recent Los Angeles Times article questioned the compensation a REALTOR® receives for his/her efforts. While REALTORS®’ compensation may be an important factor for sellers to consider, it should not be the deciding factor. KEEP THIS IN MIND • Rather than focusing on a REALTOR®’s compensation, consumers instead should focus on identifying and selecting a REALTOR® who best meets their needs and unique situation. The guidance and value a REALTOR® brings to the transaction cannot be determined by his or her commission rate alone. In this instance, the saying “you get what you pay for,” may ring true. Consumers should interview several REALTORS® to identify the best fit for them and their situation. • It’s critical to point out that although there are more than half a million licensed agents, not every real estate agent is a REALTOR® who voluntarily agrees to subscribe to a strict Code of Ethics. As members of their local, state, and national associations of REALTORS®, REALTORS® constantly receive updates on the latest housing legislation impacting them and their clients. Additionally, REALTORS® have access to the latest technologies for the real estate industry, including critical housing data, pricing trends, time on market, and historical sales activity in the neighborhood. These tools and resources enables REALTORS® to provide the highest level of service possible, including helping sellers determine the best price for their home in today’s market. • A REALTOR® also can assist with the critical negotiations included in every real estate transaction, and help both buyers and sellers finalize the many details that comprise a purchase agreement. For sellers, a REALTOR®’s role may include negotiating a sale price and other terms in this tough market. A REALTOR® also can help sellers determine what, if any, repairs may be the owner’s responsibility, and can help negotiate deadlines for their completion.

 To read the full story, please click here: http://www.latimes.com/business/la-fi-cover-homeselling6-2009dec06,0,2270963.story

When properties sell, when they can actually be categorized as sold, an escrow has closed.  Some property closings come with more anticipation than others because of the circumstances surrounding a sale, or the uniqueness of a property.  In West Marin, uniqueness is commonplace take for example Camp Tomales just South of Tomales which just closed escrow this week.  Or, take for example a bank owned – REO(real estate owned) property that just closed escrow this week in Dillon Beach.

Why are these properties of interest to someone like you or me?   Lets first talk about 5 Park in Dillon Beach.  Generally West Marin has not seen many foreclosures but we have had a few in Dillon Beach.  Of particular interest, a sale that has been watched by many is 5 Park.  Why?  Because this property went to auction, had multiples bidders, and sold for $351,750 on August 31, 2009.  Since I have been in the business since 1994, this is the first property I am aware of that went to auction.  Just over four years ago, during a peak period in the market, 5 Park sold on August 16, 2005 for $600,000 according to MLS data.   That is a $248,250 drop in value over a period of four years.

5 Park is also the last bank owned property that has been on the market in Dillon Beach.  Getting bank owned properties out of the marketplace is a milestone and a corner turned to a healthier marketplace.  Bank owned properties are distress sales, and represents the highest and best the investor could salvage from their initial investment.  At auctions, even though they post a minimum bid, in this case it was approximately $119,000(that will get your attention even if you don’t show up at the auction), there usually is a reserve amount that the investor will not sell for anything less.  If the auction does not produce a ready, willing and able buyer at the reserve amount or higher, no deal. 

What is important about this sale, is that it did not go below the lowest recent sale in Dillon Beach which was $350,000.  I blogged earlier about Economic Optimism and the historic bottom.  I think we have hit bottom and this sale in my mind confirms it. 

Camp Tomales, what a fascinating property.  It was listed for sale for $795,000, and closed September 2, 2009 for $600,000, an all cash sale, according to MLS data.  This property is rich with history and intrigue, acreage, old house, former cabins, across a bridge, next to a creek, big majestic grand cypress trees and fruit bearing trees.  This was another multiple offer property. 

When properties close escrow, sales prices enter into the public domain.  These are two to take notice of.

You have heard the saying.  You can complete the sentence however you want…whoever or whatever  makes your  house  your home. 

For me, my home has not been complete without a dog.  For the past 24 years, two dogs.  I write this in memory of Cricket.

On August 4, our beloved Cricket passed away.  She was dearly loved, and oh the love she gave.  Every day. 

She came to our family through a friend as a puppy, who’s owner had to move and could not take her two beautiful golden retriever/lab mix puppies and her beloved pot bellied pig.  Our friend knew just the family to call. 

Twelve years ago, my son and I upon dispatch got in the car.  My husband said, “ you know what will happen if you go, you’ll come home with a puppy.”  Sure enough.  We found ourselves with our arms around a warm fuzzy puppy, full of life and love homeward bound.  What shall we name her?  Cricket, my son said, without hesitation.  There begins a wonderful journey in our family’s life. 

She woke up every morning like a puppy.  Happy, loving.  Ready for her walk.   She greeted you home with tail wagging.  A true friend. Her joy and love of her family were ever present and continues in our hearts and memory. 

I have said to others that she helped raise our children. This is true.  She also taught our Cattle Dog to love the water and swim. 

Well so long my trusted friend and love, Cricket.  You will always be remembered by your family and all your beach friends.

According to California Association of Realtors, the U.S. Dept. of Housing and Urban Development (HUD) recently announced that the Federal Housing Administration (FHA) has implemented changes to its loan modification program to ensure consistency with the Obama Administration’s Making Home Affordable Modification Program. By August 15, FHA borrowers will be able to reduce their monthly mortgage payments by seeking a loan modification through their current mortgage company or loan servicer under the new FHA-Home Affordable Modification Program (FHA-HAMP).

The program will allow HUD to bring a borrower’s payment down to an affordable level. Under the plan, mortgage servicers can reduce the amount of principal on which the borrower must make loan payments by as much as 30 percent to get monthly payments to affordable levels.  The borrower makes the reduced payments for the life of the loan, but is responsible for paying off the loan in full when the home is sold or the loan is refinanced.

FHA borrowers can receive a loan modification after they have missed one loan payment, rather than waiting until they are at least three payments behind, as in the past.  This differs from the Making Home Affordable Program in that borrowers who are current, but are at risk of default can qualify for assistance.

HUD does not have an estimate on the number of borrowers that will be assisted.  According to LPS Applied Analytics, 14.2 percent of FHA loans are at least 30 days past due and not yet in foreclosure.