11. November 2008 by Ana Connell.

Studio City Monthly Activity Report: 10-2008

Property Type: Residential

Studio City YTD Activity Report: 1/1/2008 through 10/31/2008

Property Type: Residential

Average days on market are down 22% from September and average sold price is up 19%!!!  Overall this is suggesting that we’ve tested the bottom and may have found it.  About the same number of properties sold suggesting that we had more activity in the higher price points.

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9. November 2008 by Ana Connell.

Prices for real estate in both the Burbank and the San Fernando Valley areas are starting to stabilize as we are testing the bottom, especially in the lower ranges. Average days on market in Burbank came down quite a bit from September’s 74 day average.

We’ll see what the coming wave of mortgage resets brings, but banks are saying they will be working to prevent foreclosures. If they do it will further stabilize pricing and help with the rebound that will eventually come.  This is a great time to buy.  If you need a competent, knowledgeable real estate agent, call me at 818-795-8474.

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23. October 2008 by Ana Connell.

1. Paint the exterior and/or paint or stain the front and garage doors, especially if they show any weathering. These are the first visuals where a potential buyer focuses. Are your doors metal and if so are they dented?  They may need to be replaced.  A fresh coat of paint can give even a relatively new home a much needed facelift. Select a neutral tone and make sure to look at eaves, gutters and drains that may also need painting.

2. Complete all needed repairs - To maximize a home’s worth, it should be in good condition both inside and out. Don’t wait until there is an offer on the home. Hire an inspector now, and fix any and all problems, such as roof deficiencies, leaky plumbing and electrical concerns.

3. Purchase a home warranty - A buyer, especially a first time buyer, may feel more comfortable if they know there is a home warranty policy.  A transferrable home warranty protection plan can provide added security to the home owner - and buyer - in this regard.

4. Stage your home - Furnishing a home in order to appeal to buyers can go a long way to getting your home sold. I fully advise using a professional stager, but if this option is not within your budget, think about creating an uncluttered space.  You may want to put much of your current furniture in storage and just work with a few pieces in order to create a spacious feel.  Take pictures and look at each room from a buyer’s perspective. 

5. Front yard landscaping - Curb appeal plays a significant role in the eyes of buyers in that first impressions go a long way. - All landscaping beds should be cleaned out and updated for the time of year it is in your region. Place new bedding material down.  Make sure your trees and bushes are trimmed.

6. Create a quick kitchen makeover – If you want the best return on your remodeling dollars, the kitchen is the place to start. Countertops and appliances are the quickest fix, as are faucets, fixtures, door knobs and other easily changed items that can have a large impact on the space.

7. Master bath retreat – This is one area of a home that can add major value.  Upgrade faucets, lighting, mirror, décor etc.  The master bath should be treated as a spa or relaxing space.  You can dress it up with plants, candles and other inexpensive, high impact décor.

8. Replace dated window treatments and light fixtures - There’s nothing more boring than a plain window or old curtains. Dated lighting fixtures can also detract from a home’s attributes.  This is an easy and inexpensive way to give your home a design impact.  If you have the money, look to a professional to ensure the best outcome.

9. Steam clean your carpet….or is it time to replace it?  Rather than steam cleaning old carpet, replace it with neutral-toned carpet with an upgraded pad to make it feel luxurious. Spending the extra money on new carpet will really make your home stand out from the crowd, in sight, feel and even smell.

10. Look at your closets – Organize and declutter your closet.  This will not only enhance the look but will make it appear more spacious.  There are great closet organization systems that will help you organize and add value to your home.

Remember, when looking at homes for sale, most home buyers cannot visualize even simple changes and clean-ups in a house, and the ones who can, will be looking for a reduced price. 

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20. October 2008 by Ana Connell.

If you are behind on your mortgage payments, you do have options.   The best advice I can give you is don’t delay and get in touch with your lender as quickly as possible.  The more you procrastinate the more likely that you will make your situation worse.

When you call your lender they may try to send you to their collections department, be firm that you need to talk to someone in the loan modification or loan work-out department.  Be persistent and keep calling until you get someone who is willing to talk to you.

Don’t wait until the lender initiates the foreclosure process by sending a Notice of Default.  Loan workouts often take months to complete, so it is important to contact the lender before you miss the first payment, having said this I do know of lenders that will ask you to call back after you have missed a payment, don’t give up.

Be persistent as lenders don’t have to wait until the borrower misses a loan payment.  Do keep in mind that they are swamped with workout requests and past-due borrowers are receiving priority.  If the employee at the bank isn’t helpful, call back and you will probably get someone else who may be more helpful.

Make sure you have your finances in order.  The bank’s loan-servicing agent will ask you to provide information about your income and expenses such as credit cards, utility and auto payments, and any other revolving debt.  You must prove financial hardship to get a loan workout.

Once you contact your lender, and are speaking to the appropriate person, what are your options?

TYPES OF LOAN WORKOUTS

1. Revised Repayment Plan:  Borrower is allowed to make up past-due payments over time by adding them on to future payments.

2. Forbearance: The lender re-apportions the payout by temporarily forgiving past-due payments to bring the borrower current and then extending the loan’s payoff schedule by the number of months in which the payments were missed.

3. Loan modification:  The lender reduces the borrower’s monthly payments by adjusting the terms of the loan, such as lowering the interest rate.  This is usually a temporary measure for a definite period of time.

4. Short Sale:  The lender agrees to let the borrower sell the property for less than the remaining loan balance.  Usually the short amount is forgiven but sometimes the lender may take the short amount and set it aside in a separate obligation such as an unsecured promissory note.

5. Short Refinance:  A special loan modification in which the lender agrees to refinance the loan at a lower rate and reduce the principal.  The federal housing bill approved in July proposes short refinancing to a fixed-rate FHA loan at no more than 90% of the original loan’s value.

6. Loan Assumption:  A new borrower assumes the original borrower’s loan debt in exchange for the property.  Be advised that while conventional adjustable loans are usually assumable, conventional fixed-rate loans are usually not.  FHA and VA loans are assumable.  Also, be advised that loan assumptions almost always require a “formal” assumption where the borrower must qualify to assume the loan.
7. Deed in Lieu of Foreclosure:  The borrower surrenders the property to the lender in exchange for forgiveness of the debt.  (Note: many lenders do not like this option) Often the lender will offer the borrower nominal funds and allow the borrower to live in the property and pay rent until they dispose of the property.  Sometimes investors will offer a lender the same option.  Both this type of transaction and Short Sales are “Pre-Foreclosure” sales.

Other options you have available include:

Talk to a HUD-approved foreclosure intervention specialist.  Their services are free and they understand how to work with lenders.  Another advantage is that they won’t let emotions get in the way.  You can call this toll-free number: (800) 569-4287.

Consult with the loan officer that originated the loan.  If he/she is still in the business and with the same lender, they may be able to provide assistance in getting the loan adjusted.

Ask an attorney to send a letter to the bank with the request for a loan workout.  Some lenders will pay more attention when the request is on an attorney’s stationery.  Another suggestion is to have it delivered by FedEx or DHL.  That will call attention to it.

This is not a good situation for anyone, the borrower or the bank, but being informed and making sure you are persistent will help you!

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19. October 2008 by Ana Connell.

Virtually every local market, Burbank, Studio City, Valley Village, Toluca Lake, Lake Balboa, Hollywood Hills, Glendale etc. has been hit pretty hard over the last couple of years.  So everyone is wondering when things will get better.  As you know there are many homes for sale in the Burbank/San Fernando Valley area.  I can also make the case for some very well priced homes in our current real estate inventory.

Obviously our current financial mess is making this situation far worse, but there is an interesting chart I was just recently looking at that paints a better picture.  The National Association of Realtors has an affordability ratio based on the data they collect.  They look at the monthly mortgage payment to income data.

The ratio for all of 2007 was at 38.3% for the Los Angeles area.  The ratio for Q2 of 2008 was at 26.5% and the historical average for Los Angeles is 29.8%…..this is all starting to look pretty good.  But, (please,there’s always a but), the affordability ratio went down to almost 20% in the late 1990’s before things started to pick up.

So in looking at current bank lending standards and the NAR’s affordability ratio for the Los Angeles area, we may be close, but I would say we probably have not hit bottom.

As with every market bottom, sales and prices will start to go up.  Here are some things you can do to prepare yourself for the rebound:

If preparing to sell your home, make sure you are decluttering and making necessary repairs.  Don’t forget to paint, where needed, and spruce up the front of your house as first impressions are important to buyers.

If you are preparing to purchase a home, get preapproved!  You need to know where you stand before you can choose what price home you can purchase.  Make sure your credit score is good and that you are saving your money for an adequate down payment.  With lending standards getting much stricter be prepared to put anywhere from 3.5%-10% down on the purchase price of your home.

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