23. October 2008 by Burbank Real Estate.

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 Burbank Real Estate.

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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29. September 2008 by Burbank Real Estate.

Many homeowners of Burbank real estate or Toluca Lake real estate are now faced with very high mortgage payments they can’t afford.  If you are one of these homeowners and are looking to sell your home in a short sale transaction, before you go into foreclosure, there are a few things you should know.

Use a real estate agent who is familiar with the process and who knows what lenders are looking for in order to negotiate a successful short sale.   Also be prepared for the process to take months, the average short sale transaction seems to take an average of 3-4 months, sometimes much longer depending on the lender.  One of the things that helps speed the process along is knowing what information needs to be submitted to your lender.

What to submit:

• W-2 forms or 1099 forms for the last 2 years.
• Federal tax returns for the last 2 years.  (Possibly state tax returns as well).
• The 2 or 3 most recent pay stubs, if any, even if the seller is collecting unemployment or disability.
• Bank Statements for the last 90 days.
• Letter explaining the seller’s unemployment status if applicable.  The seller will have to demonstrate that their unemployment was involuntary on their part.
• Hardship (SAD) letter.  This can be combined with the letter of unemployment but the seller must elaborate on why they are in their current situation of being financially insolvent.  They must demonstrate to the lender that the circumstances which led to their situation were beyond their control.  Typically lenders prefer that this letter be hand-written in the seller’s own words.
• Broker Price Opinion (BPO) on the property.  

These are just some of the many details your agent should be familiar with…..for more information, please call me at 818-795-8474.

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3. August 2008 by Burbank Real Estate.

As you can see the downward trend is continuing, but certain communities are doing better than others. Burbank real estate sales of condos and single family residences were down 13.71% for the month of June, while sales in neighboring Studio City were only down 3.05%.

Real estate is local, which is why it pays to have a knowledgeable realtor on your side!

Home Sales For June 2008

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24. July 2008 by Burbank Real Estate.

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