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

According to the California Association of Realtors, despite recent indicators that the housing market is improving, a new report shows that one in four mortgage borrowers are underwater, meaning they owe more on their mortgage than their home currently is worth. According to First American CoreLogic, nearly 10.7 million households had negative equity in their homes in the third quarter, accounting for about 23 percent of all U.S. homeowners. Most homeowners, however, still have equity, and nearly 24 million owner-occupied homes do not have a mortgage, according to the U.S. Census Bureau. A study by credit-scoring company Experian shows that approximately 588,000 borrowers strategically defaulted on their mortgages last year, even though they could afford to pay—more than double the number in 2007. Homeowners with negative equity are more likely to strategically default if they live in a state where the bank cannot pursue their assets in court, according to a study by the Federal Reserve Bank of Richmond. California is an example of a state with anti-deficiency laws protecting homeowners from personal liability under certain circumstances. “Borrowers who are less than 20 percent underwater are likely to maintain their mortgage if their loan is modified and the payments reduced,” said an official with Citigroup’s mortgage unit. “Beyond 120 percent, the most effective modification is a complete loan restructuring, including a principal reduction.”

When does the California Subdivison Map Act(CSMA) apply.  When recorded subdivision maps create five or more “legal lots”, and recorded parcel maps create four or fewer “legal lots.” So, how do you know if there’s a violation of the CSMA?  A clue can be found in the legal description.

According to Linda A. Kirios, Esq., Counsel to the California Association of Realtors,  if your legal description reads,

” ‘Parcel 2 of Parcel Map 12345 on a particular recording date in Maps of Los Angeles County California,’ or ‘Track 11  of Tract Map 12345 recorded on a particular recording date in Maps of Los Angeles County California,’ ”  Kirios suggests chances are the lot is “legal.” 

On the other hand, if you see wording in the legal description such as “a portion of Lot…” or “the north 10 feet of Parcel…” , Kirios suggests  there might be a CSMA violation. 

Metes and bounds legal descriptions should also be further investigated. 

Certificates of Compliance (COC) may be necessary to verify that the parcel complies with the CSMA deeming that the lot legal at the time of creation.  Kirios indicates that “If one sells all of one’s property, then one may be safe.” 

If in doubt contact  a licensed Real Estate Broker who can request that the title company issue a subdivision map act endorsement to the title policy whereby ensuring no violation of the CSMA.  If the title company won’t issue the endorsement, a COC may be necessary. 

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According to the California Association of Realtors, a program by the U.S. Treasury Dept. aims to provide $29 billion to state and local housing finance agencies over the next year. Housing finance agencies provide loans to low- and moderate-income borrowers and have faced challenges in recent months as investors have been reluctant to purchase their debt. Under the program, the Treasury Dept., along with Fannie Mae and Freddie Mac, will buy bonds used by housing finance agencies to fund mortgages. California’s Housing Finance Agency (CalHFA) received the largest allocation of any housing finance agency–$1.6 billion of the $1.7 billion it sought. The Treasury hopes the program will help stabilize the housing sector, while providing another avenue for borrowers to secure affordable loans. According to the National Council of State Housing Agencies, local housing agencies generally assist 100,000 borrowers each year.

According to the California Association of Realtors, Fannie Mae last week announced a new Deed for Lease™ program. The new program allows borrowers to voluntarily transfer their property back to the lender and then lease back the house at market rate. The lease period is for up to 12 months, with month-to-month contract extensions after that period. The program is designed for borrowers who do not qualify for or have not been able to obtain other loan-workout solutions, such as loan modifications. To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance also may be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31 percent of their gross income. Homeowners thinking of participating in the Deed for Lease™ program should visit Fannie Mae’s loan lookup Web site at http://loanlookup.fanniemae.com/loanlookup/ to see whether their loan is owned or guaranteed by Fannie. Mortgages backed by the Federal Housing Administration and other government agencies are not eligible for the Deed for Lease ™ program. To read the full story, please click here: http://blogs.wsj.com/developments/2009/11/06/qa-how-to-rent-your-home-from-

Local Grocer wants to sell.  Just listed in MLS today, you’ll find a new business opportunity for sale.  Quoting from the Bay Area Real Estate Information Services(BARIES MLS), the business is described as such,

“Very long established country general and liquor store as this store has been in existence since 1867! It is a locally owned & operated with a unique location and old fashioned country charm. This 3000 square foot facility has a current rent of $1,700 per month. Lease term expires 5/2015, & there is one five year option to extend the lease. If you have ever dreamed of owning your own country general store, this is a once in a lifetime opportunity.”

To locals, it is the cornerstone and mainstay of Tomales and surrounding areas.  The bread and butter place and a whole lot more. 

Generations of kids have bought candy there, locals can run a credit tag, purchase  fishing licenses or hardware.  It is our community’s lifeblood being a distance away from urban life. 

It is for sale!  Whoaaa!.  This could mean more change than Tomales is ready for.  Either the nature of the business as we know it and have become accustomed to, or just the possibility of a new management style makes you put some thought to it.  It is an opportunity, a business opportunity.   

This will be an interesting development in the center of Tomales’s Historic District.  All eyes are watching now, ears are listening.  

It has prime commercial potential on Highway One located at the gateway to the Coast in West Marin.

According to the California Association of Realtors, the U.S. House of Representatives today voted 403 to 12 to extend and expand the home buyer tax credit. The bill passed the U.S. Senate late yesterday and now will go to President Obama for his signature, where it is expected to be signed this week. The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000. Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order. For weeks, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R and its members have urged Congress and the U.S. Senate to extend and expand this crucial piece of legislation. Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers. According to C.A.R. research, nearly 40 percent of first-time home buyers surveyed said they would not have purchased a home without the federal tax credit, and approximately 70 percent said the tax credit was “the most important” or a “very important” factor in their decision to buy a home.

Senate leaders announced they agreed to an extension of the $8,000 first-time home buyer tax credit through April 30 which was previously set to expire November 30th. 

This is great news for first time home buyers and our economy!