West LA Vs Los Angeles

While Los Angeles has dropped as a whole in recent years, West Los Angeles is still holding it's value. Call me for any of your investment questions on what is a great investment for your situation!

West Los Angeles Recently Sold Homes

Changes could be on the horizon for Playa Del Rey

Playa del Rey trying to make it back to the glory days

Once a destination spot with killer surf, the beach-side community has lost some of its appeal. Developers have plans for residential and retail space, but residents wonder if they'll go too far.

By Martha Groves

March 20, 2009

Time was when Playa del Rey lived up to its name: King's Beach. The hamlet's Toes Beach had a majestic break that lured the likes of singing surfer Dennis Wilson of Beach Boys fame.

Wave riders could grab a burger at one of many hangouts, while more sophisticated diners -- airline pilots, aerospace engineers, professors -- had their pick of white-tablecloth restaurants.

It was a destination surfing town with a casual vibe but plenty of bustle.

The casual vibe remains, but Playa del Rey is no longer much of a destination.

An off-shore breakwater, installed in 1965 in part to calm the wave action afflicting the nascent Marina del Rey development, wiped out the enclave's big surf -- and with it, much of its coastal cachet.

Over the years, many fine dining establishments have disappeared, and now the tired commercial strip features bars but no bank, hardware store, pharmacy or major grocery store.

Meanwhile, South Bay commuters have turned Culver Boulevard, which curves through town, into what locals semi-jokingly call the Manhattan Beach Freeway.

"It's an area that people pass through," said David J. Dukesherer, a local historian and longtime resident of the area. "They don't stop. They don't trade."

But developers see opportunity in the quirky hamlet, and lately, townspeople have engaged in an often testy debate over whether to embrace or resist efforts to enliven the scene with new housing and shops. The conversation has pitted residents who like everything the way it is, faded storefronts and all, against those who believe that the town could benefit from some spiffing up and new amenities.

"I'm fond of the pig, obviously, but I think it needs a little lipstick," Dukesherer said.

The problem is that developers have suggested more than a little lipstick for this relatively prosperous community of about 11,000.

To resounding shouts of disapproval, developer David Schwartzman of DS Ventures has proposed building 13 rental units on a privately held parcel sandwiched between Ballona Creek and the beloved Del Rey Lagoon.

The lagoon is a vastly reduced remnant of the shallow lake that once stretched all the way to Venice, but was filled in with dredged materials in the 1930s when the U.S. Army Corps of Engineers straightened out the creek.

Over the years, residents have urged the city of Los Angeles to buy the 2.4-acre parcel or swap it for another property. The land, nicknamed Egret Park, provides what some wetlands advocates contend is a crucial ecological link with the creek and nearby wetlands.

A citizens group, the Committee to Complete the Park, has been working with the developer to reach a compromise.

Schwartzman recently proposed a swap package worth $7.3 million in cash and land to the Neighborhood Council of Westchester/Playa del Rey.

The council supported a resolution to have park supporters try to secure funds for the deal.

Los Angeles City Councilman Bill Rosendahl, who represents Playa del Rey, said he opposes any development at the site. "I think it should be part of a national conservancy," he said.

Meanwhile, developer Edward M. Czuker, who has proposed a large, mixed-use project in Marina del Rey called the Waterfront, has plans for a trio of properties in Playa del Rey, although he has yet to submit formal applications.

The sites include the Toes Beach sand dunes. An affiliate of Czuker's EMC Development LLC bought the dunes area in 2007 from investors whose proposed town-home development met with stiff resistance years ago from residents fearing a loss of their ocean views.

Czuker is considering building 28 single-family, multistory dwellings, to be constructed in pairs with 10-foot "viewing corridors" in between and a main view line that would align with Convoy Street.

The company also plans to develop the property where the Outlaws Bar & Grill restaurant and a parking lot now stand, next to the Tanner's Coffee building at 200 Culver Blvd.

On Thursday, the city's Cultural Heritage Commission voted to designate the Tanner's building, erected in the 1920s, as a historic-cultural monument. If the Los Angeles City Council agrees to the designation, the developer would be able to apply for tax benefits under the state Mills Act.

The stucco building served initially as the headquarters for Dickinson & Gillespie, the real estate company that developed Playa del Rey.

The most noteworthy owner was the late Robert Miles Runyan, a graphic designer known for creating the "Stars in Motion" logo for the 1984 Olympics in Los Angeles. Runyan created the design in the building, according to the monument application.

Derek Jones, an attorney and vice president of EMC, said Outlaws would move into the Tanner's building, with frontage on Vista del Mar, and maintain an outdoor patio at the back. EMC is looking to build as many as 60 residential units atop about 6,000 square feet of retail space.

The company also plans as many as 60 units, along with about 10,000 square feet of retail, for an area known as the Triangle, bordered by Vista del Mar, Culver and Trolley Way. The site is known locally as Jake's, after a defunct restaurant.

Jones said many residents have voiced a desire for an "improved array of services" within walking distance -- a bike shop, say, or a pharmacy or grocery store. These days, parents in need of cold medicine for a feverish child at midnight must drive to Westchester or elsewhere. "You may go in your pajamas, but you have to get in a car and drive," the attorney said.

Susan Shehab, a longtime resident and apartment building owner, said she thinks the town, now served by the small Gordon's Market, is ready for something high-end, maybe "a mini-Bristol Farms." But she fears that a trickle of development could become a flood -- or that a little bit of lipstick could lead to full-blown plastic surgery.

The beach community is already feeling hemmed in -- by the huge Playa Vista development to the east, high-rise-dotted Marina del Rey to the north and the commercial zone around Los Angeles International Airport to the south.

Jones, in many community meetings, has sought to put minds at ease. "Our goal, honest to goodness, is to improve the quality of life in Playa del Rey without changing the character," he said.

The prospect of as many as 120 new housing units in the community's tiny core alarms Bob Hughes, president of the West Beach Property Owners Homeowners Assn. His densely packed beach-side neighborhood is affectionately known as the Jungle.

"The storefronts on Culver are past their life, and we need to gussy them up," said Hughes, a builder. "But we don't want high density, that's for sure. We have enough traffic and pollution."

Still, Hughes said he was a realist who recognized that private property owners should be entitled to do something with their land.

"We're not going to be able to stay the way we are," he said. "There's going to be some change in Playa."

Looking for ready willing and able buyer for Short Sale in Westwood -->Just Reduced to $450,000

1617 S. Beverly Glen Blvd # 105. Short Sale Recently reduced to

$450,000 in Westwood/Century City area. 2 bedroom 1.75 bathroom over 1400 sq ft. HOA's ($385) include water and earthquake insurance. In unit laundry, 2 parking spaces. For more information on this deal or other opportunities on the market today contact:

Michael Cohen

Keller Williams Realty Santa Monica

310-622-0512

mike@westsidebymike.com

DRE # 01522253

Top 5 renovations to sell that home

By Tamara E. Holmes

How can you help your homes stand out in the crowd

Top 5 midrange renovations by return on investment Project Job cost Resale value Cost recouped Deck addition (wood) $10,601 $8,676 81.8% Siding replacement (vinyl) $10,256 $8,274 80.7% Minor kitchen remodel $21,246 $16,881 79.5% Window replacement (wood) $11,512 $8,946 77.7% Window replacement (vinyl) $10,537 $8,132 77.2% Source: Remodeling magazine's Cost vs. Value Report 2008-09 Upgrades and renovations can make all the difference to a potential buyer who has many homes to choose from, experts say. With the recession keeping many people from spending on home improvements, now might be the perfect time to find a great deal. "A lot of the big remodeling jobs have gone away because people are not sure about the economy, so they're just waiting," says David Lupberger, home improvement expert at ServiceMagic.com, a company that connects homeowners with home service professionals. As a result, "a lot of good contractors are available." Contractors are ready and willing to do the job, and many can be hired at a discount right now, Lupberger says. "It's a matter of supply and demand. These guys have been used to doing one or two $300,000 projects. Those projects aren't around, so now they're doing the $25,000 projects, the $50,000 projects, and pricing them very competitively." While deals will probably be best in areas of the country hit hard by the real estate downturn and a worsening economy, it doesn't hurt to get quotes from several contractors no matter where you live, Lupberger says. Also, be open to different types of offers. For example, one contractor could charge $5,000 less for one particular job, while another might tack on an extra project for free if you spend a certain amount of money with his company. Getting buyers to buy For those planning to sell a home in the near future, getting a deal on costly renovations can pay off yet again when they sell the house. Some remodeling projects not only add to the home's value, but they give prospective buyers more incentives to buy in the first place, particularly in a competitive market such as this one. "Many buyers judge a house by its exterior," says Walter Molony, a spokesman for the National Association of Realtors. So it's little surprise that among the home improvement projects most appreciated by buyers are midrange wood deck additions and siding replacements, according to Remodeling magazine's 2008-2009 Cost vs. Value Report, which looks at the return of investment for various remodeling projects. Owners who put decks on their homes recouped 81.8 percent of their money, and siding replacement projects gave homeowners 80.7 percent of a return on investment. Another type of project that paid off for homeowners: "Midrange kitchen remodels, which are often valuable projects in terms of resale," Molony says. According to the report, minor kitchen remodeling netted a 79.5 percent return on investment. The projects that added the least value were those appreciated only by select groups of people, according to the report. Home-office remodels and sunroom additions scored noticeably lower because such features don't appeal to all buyers, as a remodeled kitchen or bathroom would. Homeowners who remodeled a home office recouped only 54.6 percent of their investment; those who added a sunroom saw a return on investment of 56.7 percent. Another project that scored low, recouping only 57.2 percent of its value, was adding a backup power generator, a feature many homebuyers likely will find appealing, but not worth tacking money onto the sales price. While certain upgrades and renovations always make a difference with buyers, the real estate downturn has negatively affected the value buyers place on many projects. In fact, most projects pay off less today than in 2007, the report shows, with the exception of a few, such as an upscale bathroom remodel. However, according to Sal Alfano, editorial director of Remodeling magazine, the rate at which the value of remodeling projects declined slowed this year compared with the last report in 2007, suggesting that the remodeling industry might have hit its bottom. A tax payoff When considering renovations that pay off, the money you can make when selling the house is only part of the story. When you make certain improvements that increase your home's energy efficiency, you could be eligible for a tax credit as well. For example, you can get a tax credit of 30 percent of the cost, up to $1,500, for buying certain windows, doors, insulation and roofs through the year 2010. Likewise, you could be eligible to get tax credits for 30 percent of the cost of major upgrades such as solar panels, solar water heaters and geothermal heat pumps. These improvements will also pay off in energy savings, and any home that has energy-saving features is bound to be a hit with cost-conscious buyers, Lupberger says. Even if a remodeling job you'd like to do isn't popular with buyers or if you don't plan to sell soon, you can take advantage of the market to make home improvements for your own enjoyment. You could also benefit from waiting to sell your upgraded home in a better real estate market for sellers. "There are two ways to look at it," says Lupberger. "One is the return on my investment. That's a financial calculation. The second calculation is what you enjoy. Ideally, a good addition accomplishes both. There is something you enjoy and at the same time, you get a return on your investment by making your home more saleable." Of course, other factors also come into play when a buyer decides to buy a house, Molony says. "The home's overall condition, availability and condition of surrounding properties, location and regional economic climate are all factors that influence value in real estate." The bottom line is buyers pay for what they like. By making renovations that will appeal to the broadest range of people -- yourself included -- you can make the most of your home while positioning it as the one buyers want to have no matter what the market is doing.

Sales of Existing U.S. Homes Probably Increased in April

May 27 (Bloomberg) -- Home resales in the U.S. probably rose in April as foreclosure auctions and improved affordability spurred bargain hunters, economists said before a report today.

Purchases of existing homes rose 2 percent to a 4.66 million annual pace from 4.57 million a month earlier, according to the median forecast in a Bloomberg News survey. Houses have sold at an average 4.6 million pace since November, raising speculation the market may be stabilizing after declining 38 percent from its peak in 2005.

Record-low mortgage rates, tax credits and falling prices may keep boosting demand and trim the glut of unsold homes. In turn, a pickup in sales will help stem the slump in property values, which is key to shoring up household finances and construction as the economy begins to emerge from the recession.

“Home sales and construction activity are probably at the bottom,” Celia Chen, an economist at Moody’s Economy.com in West Chester, Pennsylvania, said in an interview on Bloomberg Television yesterday. “Home sales are being boosted by foreclosure sales and that’s helping to keep activity stable.”

The report from the National Association of Realtors is due at 10 a.m. in Washington. The median forecast was based on 72 estimates that ranged from a 4.47 million rate to 4.8 million.

Foreclosure filings in the U.S. rose to a record in April for the second consecutive month, Realtytrac Inc., a seller of foreclosure data, said May 13, as the jobless rate climbed to its highest in more than a quarter century. Foreclosure filings jumped 32 percent from a year earlier, the group said.

Foreclosure Sales

Purchases of foreclosed properties accounted for about 50 percent of home resales in March as the drop in prices brought first-time buyers into the market, the NAR said last month. Home values are down by almost a third from their peaks in mid-2006, according to data from S&P/Case Shiller.

In addition, the Obama administration’s stimulus plan provided an $8,000 tax credit for first-time home buyers for purchases completed before Dec. 1.

Lower mortgage costs are also helping to make buying more affordable. Rates on 30-year fixed loans fell to 4.78 percent in April, the lowest level since Freddie Mac began keeping records in 1972. Federal Reserve purchases of mortgage securities have contributed to bringing down rates, economists said.

“The housing market is beginning to stabilize,” Fed Chairman Ben S. Bernanke said in congressional testimony on May 5. “We continue to expect economic activity to bottom out, then to turn up later this year.”

Some housing-related businesses are reporting an improved outlook. Lowe’s Cos., the second-largest U.S. home-improvement retailer, posted first-quarter earnings that fell less than analysts estimated.

“There have been some encouraging signs in recent weeks that suggest perhaps the worst is behind us,” Lowe’s Chief Executive Officer Robert Niblock said on a conference call May 18. “Consumer confidence has ticked up. Housing turnover, especially in certain markets, is showing signs of a bottom.”

This article is a must read! Major changes to be coming to help the Short Sale Process become feasible!

By LESLIE BERKMAN
The Press-Enterprise

Lenders, including Bank of America and Wells Fargo, say they are making it easier for delinquent borrowers to avoid foreclosure by selling their homes for less than they owe on them.

Their efforts dovetail with a strategy unveiled last week by the Obama administration to promote such short sales.

Demand for short sales has burgeoned because falling home prices have made it impossible for many homeowners to get high enough prices to repay their lenders if they run into financial trouble, such as a job loss.

A short sale has an advantage over foreclosure for the homeowner because it is less embarrassing and does less damage to his or her credit. And for the lender, it is less costly than having to repossess, market and maintain a vacant property.

Also, keeping a house occupied can help preserve a neighborhood.

However, because of the complexity of such transactions -- including the need for approval of a sales price by lenders, investors and mortgage insurers -- the sales often fall apart. Real estate agents complain that by the time they get an answer from the bank on an offer, the potential buyer has lost interest.

At Bank of America, the nation's largest mortgage servicer, more than 60 percent of approved short sales do not close, which is why the bank wants to streamline the process, said BofA Senior Vice President David Sunlin by telephone Thursday.

Sunlin, who manages short sales for the bank, said the bank's first goal still is to negotiate a mortgage modification that will let a borrower keep his home. But he said during those negotiations the bank can simultaneously obtain the documentation needed to qualify the borrower for a short sale if the modification doesn't work.

In the past, Sunlin said, the bank did not begin the lengthy process of qualifying a borrower for a short sale until it had received a purchase offer.

To expedite short sales, Bank of America has enlarged and updated staff training and set up a phone line dedicated to short sales that borrowers and their agents can use.

Also, Sunlin said, in 60 to 90 days the bank will roll out a Web program it will use to find and track the short sales of houses with mortgages that it services. He said the Web portal also will accept qualifying documentation from clients wishing to do short sales.

Sunlin said it typically takes 45 to 60 days for the bank to tell a client if a short sale offer can be accepted, and up to 90 days if an investor must approve it. The goal, he said, is to shorten the wait to a week.

"By doing this, we should see more private sales instead of more sales of bank-owned (houses)," he said.

Sunlin said short sales will also benefit from an amendment to President Barack Obama's Making Home Affordable program announced last week that will standardize short sale application and acceptance forms. It also provides monetary incentives to servicers and helps cover relocation expense for homeowners.

David Knight, senior vice president at Wells Fargo Home Mortgage, said in an interview that his bank has been working many months to reduce delays in the short sale process. He said the bank is working closely with borrowers' agents to increase the likelihood that the listing prices on a short sale will be accepted.

The lending and real estate industries have been on a crash course to learn about short sales since the housing market bust, Knight said. "The big challenge is none of us really understood the process," he said.

'09 First Quarter Housing Market Report

By Oscar Wei, Senior Research Analyst

Encouraged by record low levels in interest rates and continued decline in home prices, motivated home buyers helped the statewide sales improved for the fifth consecutive quarter since bottoming out in the fourth quarter of 2007. Sales of existing single-family homes surged to 590,390 in the first quarter of 2009, an increase of 9.7 percent from the fourth quarter of 2008, and a jump of 82.7 percent from the first quarter of last year. The sales level was the highest since the third quarter of 2005 when sales reached a near-record of 634,090.

Meanwhile, the median price for California continued to decline as deeply-discounted distressed sales remained at high levels in many parts of the state. The median home price for existing single-family detached homes dropped 40.1 percent from a year ago to $250,640 in the first quarter of 2009, reaching a level not seen since early 2001.

Southern California

Sales activity in Southern California followed the sales trend of the state closely with non seasonally-adjusted first-quarter sales increasing 95.8 percent on a year-to-year basis from the first quarter of 2008. All regions in the area experienced an increase in sales of over 50 percent from a year ago, with the Riverside/San Bernardino region growing the most at 141.7 percent. The median price for Southern California decreased 39.0 percent year-to-year to $259,000 in the first quarter of 2009, and had been declining in the range of 40 percent for three consecutive quarters. Home prices fell in all regions with year-to-year declines ranging from a drop of 51.6 percent in the Palm Springs/Lower Desert Region to a drop of 28.3 percent in Orange County.

Bay Area

More homes were sold in the San Francisco Bay Area, but the sales increase was not as strong as that of the state or Southern California. Home sales in the Bay Area increased 33.9 percent year-to-year in the first quarter of 2009, but were still far below the growth rate of the state. All counties except Marin and San Mateo registered sales increases when compared to the same quarter of last year. Solano and Sonoma counties, where home sales were comprised of mostly distressed properties, continued to show significant sales growth. Counties with higher home prices such as Marin, San Francisco, and San Mateo, however, continued to perform at or below last year’s sales levels, as the lack of funding for jumbo loans remained an issue to many home buyers in the area. The median price for the Bay Area dropped 42.7 percent year-to-year to $401,980 for the first quarter of 2009. Prior to the fourth quarter of 2008, the decline in home prices in the Bay Area was relatively mild compared to the state as a whole, but has caught up with the rest of the state since then. Contra-Costa, Marin, and San Francisco continued to show moderate price depreciations in the mid-20 percent range, as compared to the 40 percent shown at the state level.

Central Valley

The Central Valley region continued to have a high ratio of distressed sales to total sales, contributing to significant growth in sales and sharp decline in prices. After falling more dramatically than the other regions of the state in 2006 and 2007, sales started leveling off in the first quarter of 2008 and have been rising since then. Sales in the first quarter of 2009 increased 121.9 percent for Fresno, 119.5 percent for Kern, 168.5 percent for Merced, and 80.9 percent for Sacramento, from last year. The Central Valley region also experienced a longer period of price decline when compared to the state as a whole. Median prices for all of the above counties have been declining since they peaked in the mid 2006, a year earlier than when the statewide median price hit its record high. Counties in the region had year-to-year price decreases ranging from 49.8 percent for Merced to 34.5 percent for Sacramento in the first quarter of 2009.

HUD/FHA E-mail Announcement (May 15, 2009)

Federal Housing Commissioner Brian D. Montgomery has extended the temporary property flipping waiver to May 10, 2010. Under the waiver, homes that were foreclosed on and are being sold by the mortgagee or on its behalf may be purchased by FHA borrowers without regard to the 90-day seasoning period. The waiver does not apply to entities that purchase foreclosures either singly or in bulk for resale. Subsequent sales of such properties will continue to be subject to the standard regulatory requirements.

The waiver expires for all loans for which the sales agreements were signed by the seller and buyer on or before May 10, 2010.

Crafting the Right Contract

What would-be buyers need to know about condos and master-planned communities

By JUNE FLETCHER

With the economy still shaky, many potential home buyers are sitting on the fence, especially when it comes to so-called "common-interest" communities like master-planned communities, condominiums and mixed-use developments. Would-be buyers are worried that they won't be able to cancel a contract if prices of similar unsold units fall, or that they'll buy a home in a failing development.

We talked to Roger Winston, a real estate attorney at Ballard Spahr Andrews and Ingersoll who specializes in common-interest law, at his office in Bethesda, Md. Here are excerpts from the conversation:

The Wall Street Journal: Many people are walking away from deposits that they've made on new condos or homes, because prices fell while their place was being built. How much of that are you seeing?

Mr. Winston: I have been seeing a lot of contract defaults. People who put down $50,000 on a $750,000 unit see that they could buy the same place now for $600,000. The money that they could lose by going through with the deal is greater than the deposit, so they walk away. Morally, they shouldn't, but from an economic standpoint, they may be better off.

WSJ: Can contracts be re-negotiated?

Mr. Winston: People shouldn't enter into a contract unless they intend to buy. But they should also understand that in this economic environment, the builder wants you to complete the purchase; he doesn't want another unit to sell. … It's not just the builder making the decision, however; the [builder's] lender must also agree to release the unit at a lower price. If the builder is able to renegotiate with the lender, it's more likely he'll be able to renegotiate with the purchaser.

WSJ: What contingencies can buyers can put into contracts to protect themselves?

Mr. Winston: You could put in a contingency that if you lose your job or your wages are cut before settlement, you could get out ... or if you can't get financing … or if the home isn't completed by a certain date. Builders are now more willing to accept reasonable modifications on contracts. But one of their concerns is, that as soon as you open the door a little, there's a possibility of a hurricane coming in. In situations where someone is trying to get out of a contract, they'll use any technicality to do that.

WSJ: What should buyers consider before buying in a mixed-use development?

Mr. Winston: Buyers should realize that the retail component that they see when they buy may not be what they get when they move in, especially if the economy continues to decline. A high-end retailer may be replaced by a low-end one.

WSJ: What should buyers consider before purchasing a condo in a new development?

Mr. Winston: It's a good idea to ask how many units have been sold, because when the building is under construction, the builder pays the condo fees for the unsold units; when he leaves, the owners are responsible for 100% of the costs of maintaining the building. Read the homeowners' association documents in terms of use restrictions, the maximum number of people allowed in a unit, leasing restrictions, architectural controls and covenants.

Some associations charge fees each time a unit is rented out, under the assumption that this causes more wear and tear on the property's common areas … and some charge resale fees that are some percentage of the purchase price. You should check if there has been a reserve study done by a third party that will show if there is enough money in reserves to pay for maintenance and repairs … Also, talk to the people who live there. They smell things, they hear things, and can tell you how nit-picky the board is about whether you can put beach towels out on the balcony or where you can park your car. They'll tell you things that no lawyer can find out.

Housing-Rescue Plan Adds 'Short Sales'

By RUTH SIMON

The Obama administration on Thursday laid out additions to its housing-rescue plan that are designed in part to make it easier for financially troubled homeowners to sell houses that are worth less than their mortgages.

The newest initiative creates a standardized process and adds incentives for so-called short sales, in which a borrower -- with lender approval -- sells the home for less than the amount owed.

The government also said it would make it simpler for borrowers to voluntarily transfer ownership of properties to mortgage companies through a "deed in lieu" of foreclosure, helping the companies avoid a potentially costly and time-consuming foreclosure process.

Administration officials said the new initiatives could help hundreds of thousands of borrowers or more.

The guidelines come nearly three months after the administration laid out its $75 billion housing-rescue plan, which uses financial incentives to encourage mortgage companies and investors to modify troubled loans. The latest announcement is aimed in part at borrowers who can't be helped by a loan modification.

Efforts to implement the programs are just getting off the ground. Government officials said Thursday that mortgage-servicing companies have offered more than 55,000 trial modifications to financially troubled borrowers and that thousands of those borrowers have begun making loan payments under the program.

In addition, roughly 3,600 borrowers have lowered their loan payments under a program that allows borrowers who have little or no equity to refinance, provided that their loan is owned or backed by government-controlled mortgage giants Fannie Mae and Freddie Mac. Fannie has received more than 51,000 applications for the program.

But not all borrowers can be helped by such efforts, often because they have too much total debt or not enough income or because modifying the loan may not be economical for an investor or lender compared with foreclosure.

The government will pay mortgage-servicing companies up to $1,000 and borrowers up to $1,500 for successful short sales or "deeds in lieu" transactions. It will also spend up to $1,000 to help defray the cost of getting holders of second mortgages to release their liens so these transactions can be completed.

Short sales have accounted for 15% to 20% of sales of existing homes this year, according to the National Association of Realtors. A short sale can result in lower losses to investors compared with a foreclosure but needs lender approval and can take three to four months to complete, said Bill Etchegaray, a real-estate agent with Century 21 Superstars in Yorba Linda, Calif.

The incentive payments to mortgage-servicing companies and streamlined process could help clear the logjam of distressed home loans, said Thomas Lawer, an independent housing economist, adding that "it's crystal clear" that short sales are often preferable to a foreclosure. But "giving borrowers money to encourage them to sell their homes without having to repay their debt is a slap in the face to everyone else," he added.

Another part of the program provides additional payments to lenders, servicers and investors for loan modifications in areas where home prices have been dropping. Payments under this program could in some cases total thousands of dollars per loan, administration officials said, and are designed to offset concerns that investors will face additional losses if the modified loans redefault.

So far, 14 mortgage-servicing companies have signed up to participate in the loan-modification program, and 75% of loans are now covered by the plan. The firms include Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co. Other mortgage companies, including SunTrust Corp., PNC Corp. and American Home Mortgage Servicing Inc., said they are still evaluating the program. HSBC Mortgage Corp. said it has been implementing the Obama program for borrowers with Fannie or Freddie mortgages, but is still evaluating the program for loans it owns. PNC is applying the guidelines of the Obama plan to loans owned or guaranteed by Fannie and Freddie, but hasn't yet signed a contract with the government that would require it to apply those same guidelines to loans it owns or services for investors, a company spokesman said.

Do you know why now is a good time to become a homeowner?

Top 5 Home Staging Trends to Help You Compete in Today’s Market

Posted By Paige On May 12, 2009 @ 3:19 pm

RISMEDIA, May 13, 2009-Staging your home before listing it on the market is a crucial step that many homeowners often overlook. While the competition continues to be fierce in today’s market, homeowners must take the necessary steps in order to make their home stand out from the others. The International Association of Home Staging Professionals (IAHSPR) offers 5 home staging tips to help you compete in today’s market:

1. Home staging is not just for houses for sale. Home staging continues to cross over into many service areas that have nothing to do with selling a house. Traditional home staging involves working with sellers to prepare houses for sale, but today’s successful Accredited Staging Professionals have a multi-faceted business that allows them to serve clients with staging to live, help organize offices with staging to work, and provide event staging for a myriad of events from parties to large corporate parties. Home stagers also provide staging to live services for those remaining in their homes to help them refresh their interiors with simple solutions. Since much of what a home stager provides is the vision and organizational skills and ability to carry out that vision to fruition, their talents are being demanded by many parallel industries.

2. Home staging helps foreclosure, REO and short sale properties sell. With the increase of foreclosure, REO, and short sale properties in many markets throughout the United States, the need for presentation of these properties as a product that can sell is imperative. As professional home stagers continue to develop relationships with banks and investors, the services they offer of being able to visually package and market a property will continue to gain value. Banks and Investors need to invest money up front to stage and sell a house versus letting it languish on the market and lose tens of thousands of dollars per property.

3. Home staging becomes greener. In The International Association of Home Staging Professionals we see a trend towards eco-friendly home staging continuing as a viable market niche. Home stagers have specific inventory they can provide that is “green” to help a seller, builder or investor that wants to put their “green” foot forward and achieve their goal of marketing a product that truly has the environment at heart. There are even inventory lines devoted to providing a truly eco-friendly product created from recycled materials that any individual, builder or organization that states they are truly ecologically conscious should be focused on including with any home staging services they receive.

4. Home staging captivates mainstream media. There are currently no less than eight shows on HGTV devoted to the process of preparing a house for sale, and this trend will continue as long as the public finds value in learning what to do both inside and outside their home when getting ready to put it on the market. The key is that although many of the shows provide entertainment quality, what they miss is the ability for a viewer to truly be objective in their own house. Home stagers that can independently assess a house’s strength’s and weaknesses, and provide a concise and effective plan of action, will continue to be in demand.

5. Education and professional associations will become more important for screening qualified home stagers. With the influx of many people providing home staging services, we see a need for qualification of skills and education in order to weed out those that have not set up their businesses with professional standards.

Please read this great article to hear what Jeffrey Mezger of KB Homes has to say about the market

Pending home sales climb, lifting recovery hopes
The National Assn. of Realtors' index shows purchases rose 3% in March from February and 1% from a year earlier.
By Peter Y. Hong

9:12 PM PDT, May 4, 2009

A reported bounce in U.S. home sales Monday boosted hopes that the housing downturn was nearing its end and that the broader economy was moving toward recovery.

The National Assn. of Realtors said its pending home sales index, which tracks signed contracts for home purchases nationwide, rose 3% in March over February's level, and was up 1% from the same month a year earlier.

The news helped to push stocks up: The Dow Jones industrial average rose 214.33 points, or 2.6%, to 8,426.74, while the Standard & Poor's 500 index rose 29.72 points, or 3.4%, to 907.24.

The pending sales index is a leading indicator of home sales totals, which are calculated after the lengthy home purchase process is completed.

"It's consistent with the other recent evidence of stabilization at the low end of the housing market," said UCLA finance professor Stuart Gabriel, who directs the university's Ziman Center for Real Estate.

The Realtor group attributed the gain to low home prices and a federal tax credit for home purchases.

"This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit," said Lawrence Yun, the group's chief economist. Yun said, however, that "we need several months of sustained growth to demonstrate a recovery in housing."

The rise in the index may indicate a return to normal seasonal housing market patterns. Home sales typically rise in March from February, but last year the pending sales index dropped 1% from February, and the index of contracts in March 2008 was down 20% from March 2007.

In Southern California, the median home sale price has held steady at $250,000 from January through March -- less than half the peak median price set in 2007, according to San Diego research firm MDA DataQuick.

The sharp plunge in Southern California home prices prompted Jeffrey Mezger, chief executive of builder KB Home, to call a market bottom Monday, an assertion he also made in late March.

"If you go to Southern Cal, for example, we're seeing a floor in pricing," Mezger said in an analysts' conference call Monday. "We don't see prices going down right now, which is a good thing, because then you can set a baseline."

KB Home constructs lower-priced homes in California and has found itself competing with previously owned homes that are in foreclosure. Various studies show higher-priced homes have not fallen as much in price in Southern California but are selling at a slower pace.

"We don't yet really see a significant rebound in sales in those marketplaces," UCLA's Gabriel said of higher-priced areas. He said financing for large mortgages remains difficult to obtain, and sellers often have the means to hang on to homes rather than sell them for less than they would like.

Also boosting the stock market was news that construction spending rose slightly in March from February. Construction spending in March totaled $969.7 billion, 0.3% above the February level, according to the Census Bureau. The March total was down 11.1% from the same month a year earlier.

The rise in construction spending was not, however, due to home building. Private residential construction was down 4.2% in March from February and was 34% lower compared with March 2008.

Public construction spending in March, which was up 1.1% from February and 2.6% from March 2008, drove the total up.

peter.hong@latimes.com

Bank of America helps to make the loan process easier to understand for customers.

Bank of America Introduces Tools that Clarify Mortgage Terms and Foster Informed Homeownership

RISMEDIA, April 28, 2009-Bank of America introduced its Bank of America Home Loans brand at locations nationwide and unveiled new tools through which homebuyers and homeowners will find greater clarity in the home finance process. The Clarity CommitmentTM, a single, one-page loan summary clearly presents to borrowers their interest rate, terms and other details of the loan in plain language. The Bank of America Home Loan Guide is an interactive website that arms customers with personalized information to prepare for homeownership and make informed home-buying and refinance decisions.

“We met with thousands of customers and created tools that reflect the transparency they want in the home buying process,” said Barbara Desoer, president, Bank of America Home Loans. “Doing the right thing for our customers is the foundation of our brand promise to always be a responsible lender and help create successful homeowners, and these tools exemplify that promise.”

In addition, the company introduced the Bank of America Home Loan Guide as part of the new Bank of America Home Loans website (bankofamerica.com/homeloans).

The unique interactive guide is designed to provide prospective homebuyers and existing homeowners looking to refinance with a personalized simulation of the home loan process. It helps consumers understand the criteria that drive lenders’ decisions, steps they can take to be more successful in the search for the appropriate home loan, and how a home loan fits into their budget and total financial picture.

By explaining key data inputs, highlighting “rules of thumb” and tips with each step, and providing context around the results, the easy-to-use guide gives consumers relevant, personalized information that helps them to understand their options and make informed decisions.

“Purchasing a home is one of the biggest decisions an individual makes, and we take seriously our responsibility to educate customers and arm them with the information they need to make smart decisions,” said Desoer. “Especially in this environment, it’s important that consumers understand the true, comprehensive costs of homeownership so they can buy a home and enjoy it with confidence.”

Bank of America Home Loans also introduced Flat Fee Mortgage Plus through the 6,100 Bank of America banking centers. A new mortgage product, Flat Fee Mortgage Plus has no application fee and one single closing fee that represents the lender and other fees required for third-party services. The product features a close-on-time guarantee and best value guarantee. The Flat Fee Mortgage Plus will be available through additional channels in the future.

The Bank of America Home Loans brand represents the combined operations of Bank of America’s mortgage and home equity business and Countrywide Home Loans, which Bank of America acquired on July 1, 2008. The Countrywide brand has been retired.

Countrywide customers already have access to Bank of America’s 6,100 banking centers, a coast-to-coast network of Bank of America Home Loans retail locations, and one of the nation’s largest ATM networks. As the new brand becomes more visible through rebranded locations, account statements, marketing materials and advertising, customers should continue to use current methods for managing their accounts and contacting customer service until the full systems conversion later this year.

The company originates and services one out of every five loans in the country, representing a servicing portfolio of almost 14 million loans. During Q1 2009, Bank of America funded $85 billion in first mortgages, helping more than 382,000 Americans purchase a home or refinance their existing mortgage. More than $16 billion of those mortgages were for 102,000 low- and moderate-income borrowers.

“Bank of America Home Loans has the scale, capacity and capability to respond to the significant customer demand we’ve seen recently,” Desoer added. “We are actively lending in this economic environment and continue to be open for business to new and existing customers.”