22. June 2009 by Burbank Real Estate.

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Of note this week is the FOMC (Federal Open Market Committee) rate policy meeting.

While it’s widely expected that the fed funds rate will remain unchanged, at zero to .25%,  the focus will be on the statements from this meeting regarding the state of the economy and the Fed’s long term policy goals.

Existing Home Sales are out tomorrow, which are expected to show an increase and New Home Sales are due out Wednesday and also expected to show an increase over the previous month.

On Thursday we’ll get jobless claims and GDP (Gross Domestic Product) for the first quarter of 2009, which is expected to post a decline.

Friday will bring Personal Income and Outlays and Consumer Sentiment.

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16. June 2009 by Burbank Real Estate.

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Housing starts showed better than expected strength in May, posting a 17.2% increase!

The rebound was led mainly by multifamily dwellings as they accounted for a 61.7% increase.  None the less, single family homes did post an increase of 7.5%.  The West and South regions posted the most significant gains.

The good news here is that we are starting to see signs of life in the housing market.  Opinions differ, especially by geographical areas, but more analysts are starting to predict better times ahead for the housing market in the next couple of years.

In other news, Industrial Production numbers came out today, posting a drop of 1.1%, which was widely expected.

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13. June 2009 by Burbank Real Estate.

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Valley Village Real Estate Report: 5-2009 

Property Type: Residential

                                             Information is Believed To Be Accurate But Not Guaranteed

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12. June 2009 by Burbank Real Estate.

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Studio City Real Estate Report: 5-2009

Property Type: Residential

                           Information is Believed To Be Accurate But Not Guaranteed

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10. June 2009 by Burbank Real Estate.

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Good news from Washington, D.C., today. The Obama administration announced new details under its Foreclosure Alternatives Program (FAP) enabling servicers and borrowers to pursue short sales and deeds-in-lieu (DIL) of foreclosure in cases where the borrower is generally eligible for a Making Home Affordable modification but does not qualify or is unable to successfully complete the three month trial period. The program, effective through 2012, requires that prior to proceeding with a foreclosure, servicers must determine if a short sale is appropriate.

We’re gratified that the administration has recognized the need to streamline the short sale and deeds-in-lieu processes, and has provided viable options to homeowners who have fallen behind on their mortgages but owe more than their homes would sell for in today’s challenging market. We also appreciate the efforts of our colleagues at NAR for keeping this issue front and center in our nation’s capital.

Incentives in the FAP program include $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000 toward the cost of paying junior lien holders to release their liens ($1 from the government for every $2 paid by the investors to the second lien holders).

The FAP includes streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter to minimize complexity and increase use of the short sale option. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements, based on an appraisal or one or more broker price opinions, issued no more than 120 days before the date of the short sale agreement.
 

In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. The property also must be listed with a licensed real estate professional with experience in the neighborhood, and no foreclosure may take place during the marketing period, of at least 90 days, as specified in the Short Sale Agreement.
  

The Short Sale Agreement also must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.  Servicers may not charge fees to borrowers/homeowners for participating in the program. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement, plus any extensions.

Additional details will be forthcoming. Please check C.A.R.’s Market Response Center for updated information as it becomes available.

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

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