August 6th, 2008 -- Posted in Home Ideas and Tips, Lending Info, Local LA Real Estate News |
What is loan modification?
Changes in your loan by the lender to help you avoid foreclosure
You basically refinance without paying high costs of refinancing…..
Banks do not want to own your home or prospering from your misfortune
I. Introduction to Loss Mitigation/Loan Modification
We all know that life is unpredictable, and that circumstances often arise that can prevent you from making your mortgage payments. Even hard-working people can encounter unforeseen situations which may affect their ability to pay their mortgage in a timely manner. Many issues can be contributing factors such as interest rate adjusting, illness, loss of job, reduced income, failed business, job relocation, death of spouse, divorce, marital separation, or even high medical bills. Just one of these situations can have a direct bearing on making home mortgage payments.
What is a Loan Modification? Loan Modification- This term has been getting a lot of attention lately and rightfully so. With millions of homeowners stuck in toxic adjustable rate mortgages and no ways to refinance out of them, loan modifications may be the only way to assist struggling borrowers. This term is used when your lender modifies your current mortgage (same loan you have, only changes are made to the note) in order to work with you and make your mortgage more affordable. A modification to your rate, balance of loan, delinquent fees owed, term of loan etc. can be made by the Lender. In the past this was only used when a borrower was delinquent but now we will see it being used before someone is delinquent. This will be the hottest term and the best way to help people avoid foreclosure.
Why, you might ask, would any bank be willing to change or even negotiate your loan terms? The reason is because banks already own over $50 billion in foreclosed properties and the last thing they want is more homes for their portfolio. It is in the banks best interest to negotiate the terms of your loan as an alternative to having to pay the high costs associated with the process of foreclosure. A loan modification is the banks best way to ensure they are paid back any money owed for the mortgage plus interest. This is a win/win scenario with the bank avoiding owning another property and potentially suffering huge losses, and more importantly ensuring your family can not only keep your home, but also maintain a mortgage payment you will have the financial capability to afford.
One of the best parts about this service is that you can potentially attain all of the benefits of refinancing without having to pay all the high costs of a refinance. Refinancing can often cost in excess of $10,000 when you take into consideration the appraisal, title, escrow, and loan origination fees. We realize that “value” in business is hard to come by, and the last thing we want to do is put our clients in a bind that could potentially lead to more financial difficulties down the road, which is why we only charge $2,000 for this service. Compare that with the costs of your last refi! Similar companies are charging anywhere from $4,000-$10,000 for this very same service!
June 30th, 2008 -- Posted in Home Ideas and Tips, La Times |
Fresh paint, small upgrades and a little bling can help attract buyers’ attention.
By Marni Jameson
Special to The Times
June 22, 2008
BACK WHEN the real estate market was hot, sellers barely had to make their beds and do the dishes for their houses to attract buyers. Any extra effort often elicited multiple offers for over the asking price.
In today’s cool market, however, those same extras can mean the difference between getting one offer or none at all, says Lisa LaPorta, cohost of HGTV’s “Designed to Sell.”
Sellers frustrated with the stagnant market should consider turning their anxiety into action. As inventory grows, a few inexpensive moves can make your house stand apart.
Here are 12 cheap tricks real estate experts recommend sellers consider to speed sales:
1. Get the right mindset. Once you list your home, detach yourself. Treat the house as a commodity, which means making changes that will broaden its appeal but that may erase some of your personal style. “I tell sellers in our first meeting that I may say things that offend them, but if I do it’s because I feel it’s for the benefit of the sale,” says Dan Verbin, general manager of Re/Max Marquee Partners, which oversees 14 offices in the South Bay and throughout Greater Los Angeles.
2. Start at the curb. Look at what people see when they pull up, says Sandy Fish, broker owner of Re/Max Ranch and Beach in San Diego, where she’s been selling real estate for 20 years. Trim hedges, prune trees, mow the lawn and plant oodles of colorful flowers. If the mailbox is tired and the address numbers are falling off, replace them. Walk around the house. Get all debris — old patio furniture, rusty barbecues — off the property. Everything outside should look perfect.
3. Paint — it’s money in a can. Outside, if a good power wash isn’t enough, a coat of paint is one of the best facelifts you can give a house for a relatively low price. If you don’t want to paint the whole house, do the trim. Inside, paint walls a soft neutral such as warm beige, sage or gold. Paint not only says new start, but it also masks odors.
4. Focus on the entry. Put some energy into the front door, because it makes a strong first impression. A few years ago, LaPorta fixed up a Pasadena home for her show. The home had a traditional old-fashioned front door, which looked like all the other doors on the street. She bought a stock door from a lumber supplier, painted it glossy burgundy, put a pediment over it, thick molding around it and flanked it with two large potted topiaries. The whole upgrade cost $2,000. The result? After the listing agent saw the improvements, she raised the original asking price by $40,000 to $739,000. The owners received multiple offers and sold in the high $700,000s, LaPorta said, “because we made an ordinary entry look stately and elegant.”
5. Catch up on maintenance. Get around to the repairs you should have been doing all along. “Fix the little stuff,” Re/Max Marquee Partner’s Verbin says. “Repair the cracked tile in the bathroom and torn screens. Replace broken light-switch covers and burned-out lightbulbs. Tape up or pin wires from audio systems and computers.”
These easy fixes show potential buyers that you pay attention to detail, which signals that you must care about the big stuff too.
6. Look for alternatives to expensive or messy upgrades. “Don’t take on a big remodel when you’re thinking of selling,” says Reva Kussmaul, a remodel coach and owner of Eye for Detail, in Pasadena. “Keep improvements small and manageable. A major project creates more mess and can take up time you could be on the market.”
However, do investigate small ways to get big results. If your tile is 1950s pink or 1970s brown, look into companies that can spray tile to make it a new color, she says. Miracle Method, for example, gives a clean, fresh look without the demo, dust or fat price tag.
If dated cabinets still work well, consider painting or staining rather than replacing them. Today’s house hunter prefers either dark wood cabinets in shades of espresso or ebony, or painted cabinets. Mid-toned browns and grainy golds are out. A dark stain over light, coarse-grained wood will quiet busy grain and make wood a color more people prefer, as will painting. Put on some new knobs, and for a couple thousand dollars, your kitchen will look as though it had a $20,000 makeover.
7. Consider new appliances. In LaPorta’s experience, sellers typically get every dollar back that they spend on new appliances. “When people see new kitchen appliances, they often see a new kitchen,” LaPorta says. “That rates high on people’s radar, especially men’s.”
8. Add some house bling. Make anything metal in your home look new and shiny. “People see shiny new metal and say ‘Oooh,’ and it’s not that expensive,” LaPorta says. You can pick up a new dining room light fixture for $200 and one for the porch for $40; people will notice. Change the front-door handle, faucets and curtain rods if they’re worn and dull. These should all look fresh.
If you have an ’80s shiny polished brass fixture, try painting it with an updated metallic that looks like oil-rubbed bronze, brushed nickel or iron. If you have metal grills on your stove, spray them their original color, using paint meant to withstand high heat.
9. Start packing. “The average home would show much better if it had 50% less stuff,” real estate broker Fish says. Since you’re already going to move, give yourself a head start by packing away all the clothes, books and dishes you won’t need for the next few months. Thinning out bookcases and closets lets buyers actually see and appreciate the space and gives the illusion that the house offers more-than-adequate storage.
Take out extra furniture, especially if it’s blocking the flow of foot traffic. “It’s better to have just a corner of a room decorated nicely with a little vignette than an overcrowded space, or a room where the furniture is of mixed styles or not to scale,” LaPorta says. If you can get all the stuff off-site in a moving pod or in storage, do so. If not, stack neat, labeled boxes in the garage.
10. Remove the “you” factor. Sorry but home buyers don’t care about your trophies, your hobbies, your taste in art or your photos. Pack all that away. Depersonalizing a home lets buyers imagine themselves in the house. “You want people looking at your house, not your wedding photos,” Fish says. “Those are just a distraction.”
Once personal art is off the walls, patch and paint over holes. While you’re at it, clear countertops. In kitchens, leave out just one appliance and, on your desk, just a phone and a lamp. Think nice hotel.
11. Clean house. “Clean is a relative term,” says LaPorta, “but we often don’t notice our own dirt. Look hard, starting with the switch plate by the front door. Wipe it down along with all light switches, doors and baseboards. If you’re not the best housekeeper, hire a service. . . . Every surface should sparkle.”
12. Banish smells. When people first walk in, they should either smell nothing or a nice scent, like cinnamon or citrus. Set out potpourri, fresh-cut flowers or subtle air fresheners. Have carpets — if not replaced — professionally cleaned and deodorized.
Some carpet-cleaning companies will also clean hardwood, tile or stone floors and grout and buff countertops. “For a 3,000-square-foot house, expect to pay under $1,000,” says Fish, adding that it’s money well spent.
Besides making suggestions as to what buyers can or should do to get a “sold” sign out front, real estate experts also suggested a few things not to do:
* Don’t avoid an upgrade with the idea that you’ll give the new owner a carpet or paint credit.
Most buyers are tapped out and don’t want to spend a lot the minute they move in. Plus, that’s one more hassle for them. They want clean surfaces when they move in. And many people lack the imagination needed to picture how much better the place will look with new carpet. Your job is to make buyers say, “I could move in tomorrow.”
* Don’t ignore the competition. Fish helps clients get realistic about their homes by showing them what else is on the market in the same price range.
“When they see what they’re up against, including new homes, that often motivates them to get real about their price and what they should fix up,” Fish says.
* Finally, don’t get so carried away making improvements that you forget the original goal: Be a bargain.
“The best way to sell your house quickly in a down market,” real estate agent Verbin says, “is to be the best deal out there.”
Marni Jameson is a syndicated home columnist, and author of “The House Always Wins.” She may be contacted through her website, marnijameson.com.
May 12th, 2008 -- Posted in Home Ideas and Tips, Local LA Real Estate News |
“Beauty is in the eye of the beholder” is never more true than when purchasing a home.
No one needs to remind sellers that today’s market is a challenging one. In fact, there are on average more than 11 months of inventory on the market at any given time.
So it is vitally important that you make sure all of your listings stand out above the others that are competing for the buyer’s attention.
Here are some very basic pointers you can print out and share with home sellers to help get them headed in the right direction:
1. De-Clutter: This one is simple. De-clutter everywhere; inside and outside. If it’s taking up space it is a potential candidate to be thrown out. The sellers need to make that all important mental conversion from “home to live in” to “house for sale.” Personal things are a big distraction as you want the buyers to be able to visualize their own belonging in the house.
2. Repair: Buyers want everything working so don’t disappoint them - dripping faucets, broken windows, leaking roofs, damaged walls and doors, etc, beg the question in the buyer’s mind…What else is broken or doesn’t work?
3. Lots of Light: The last thing home buyers want to see is a dark home with all of the doors and windows covered. Let the light in and open some windows to let in some fresh air. Room deodorizers leave the impression of covering something up as does a window that has the blinds drawn.
4. Clean Windows: Buyers want to know and see the view they will have from every room - don’t make them look through dirty windows. If they do, the impression of a having great view is literally going “out the window.”
5. Kitchen and Bathrooms: Two of the most important rooms in the house. They must be spotless and first class. Just cleaning up isn’t going to be good enough - you need to “deep clean” all counters, floors, cabinets and all the fixtures in the bathrooms. In the bathrooms consider new fixtures or countertops and perhaps redoing the shower and tub enclosures. If new fixtures are not in the budget you may want to consider having them refinished. Think about having all the tile steam cleaned and make sure all grout is free from grease and dirt.
6. Odors: Absolute deal killers are cigarette or pet odors. If this is a problem - have the drapes, carpets and furniture professionally cleaned and please…”no smoking” in the house. Also, cooking odors are not a good thing. The best bet is to always for plan fresh air. Often a little lemon oil mixed with water in a spray bottle used lightly used will add just a bit of freshness without overpowering the house.
7. Paint: A fresh coat of paint on the outside or inside is an excellent way of freshening up your home. Be sure to use neutral colors and avoid accent painting. Don’t try and guess what a potential buyer will like. In most cases they should use a professional painter because it’s always a bigger job than most people think.
8. Yard Work: Deal with overgrown bushes, shrubs and trees. Everything in the yard needs to be trimmed, watered, manicured and “living.” Remove everything lying around the yard including sports equipment, boats, trailers, toys, etc. You may also add some color by placing some annuals in planters in the back as well as in the front. Curb appeal makes that all important “first impression.”
9. Furniture: The bottom line… less is best. If it’s old, worn or dated, you should put it in storage. Remember that you are setting a stage and the actor needs to be the house - not their furniture.
10. Hardwood Floors: Hardwood floors can be a huge plus for buyers unless they look like a 20 year old basketball court. It may be a great investment to have them all refinished - but keep in mind that it’s not a simple weekend project.
Changing “lived in homes” into “houses for sale” is what it’s all about.
April 7th, 2008 -- Posted in Home Ideas and Tips, Lending Info, Local LA Real Estate News |
Information on Decline in Value Reassessments
It has been widely reported that the property values of single-family homes and condominiums throughout most of the State have been declining. While the declines in Los Angeles County have not been as dramatic as those in other parts of the State, property values have dropped in some areas of Los Angeles County.
How does this impact your property taxes? In 1978, California voters passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a “decline-in-value.” A decline-in-value occurs when the current market value of your property is less than the assessed value as of January 1.
Typically, an application is required to initiate a review of your property’s value by the Assessor. However, in 2008 the Los Angeles County Assessor’s Office will be proactive in reviewing those single-family homes and condominiums that were purchased between July 1, 2005 and June 30, 2007. We will look at sales of comparable properties that sold near the lien date, January 1, 2008. If the market value is less than the assessed value indicated on your 2007-08 tax bill, the assessed value will be reduced accordingly. An application will not be necessary.
We will complete this review by June 1, 2008 and will notify in writing those property owners who qualify for a reduction in the assessed value of their property. Applications will be accepted prior to June 1, 2008, but if you purchased your home between July 1, 2005 and June 30, 2007, we urge you to wait for notification from our office before filing. Should it be necessary, you will have until December 31, 2008 to file an application for review.
If the sale date of your property is not within the dates noted or is other than a single family home or condominium, it will not be included in the review. However, if you believe the assessed value of the property shown on the 2007-08 tax bill is more than the fair market value as of January 1, 2008, you may file an application at any time through December 31, 2008.
We are aware of at least one private company that did a mass mailing to property owners offering their services to pursue a reduction in their property taxes. Specifically, they are seeking to file an assessment appeal on the property owner’s behalf. While there is no initial fee charged for the filing of an appeal, if a reduction is granted, this particular company will receive 45% of the amount of the tax savings for the next two years. We expect other private companies to offer similar services for a fee or a percentage of any tax savings.
Solicitations of this type may not be illegal, but property owners should be aware that the Assessor’s Office provides a simple filing process for a reduction in their property taxes at no charge.
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Decline-in-Value Reassessments
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Proposition 8 – What is It?
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In 1978, California voters passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a “decline-in-value.” A decline-in-value occurs when the current market value of your property is less than the current assessed value as of January 1.1
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Eligibility Requirements
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- You must demonstrate that on January 1, the market value of your property was less than its current assessed value.
- You must file a claim form for a Decline-in-Value Reassessment Application (Prop.8) with the Assessor between January 1 and December 31 for the fiscal year beginning on July 1. If December 31 falls on a Saturday, Sunday, or a legal holiday, an application is valid if either filed or mailed and postmarked by the next business day.
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The Process
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- On your claim form, provide the Assessor with information that supports your opinion that the market value for your property is less than the assessed value. The best supporting documentation is information on sales of comparable properties. You should select two comparable sales that sold as close to January 1 as possible, but no later than March 31. You may query the Assessor’s database for sales in your neighborhood by clicking here. While the submission of comparable sales is helpful for the Assessor in determining the market value of your property, applications submitted without comparable sales will be accepted and processed.
- An appraiser will review your claim form and the information you provide. Other sales information available to the Assessor may also be considered. If the market value as of January 1 is less than the trended base value2, your assessed value will be lowered to the market value for the fiscal year beginning on July 1. The adjusted value will be reflected on your annual tax bill.
- If the current market value is higher than the trended base value, no change in assessed value will be made.If you disagree with the Assessor’s findings, you may file an appeal with the Assessment Appeals Board. You must file your appeal between July 2 and November 30 for your annual tax bill.
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Example
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A property was purchased for $500,000. During a three-year period, the real estate market declined and recovered. The property owner filed for a decline-in-value reassessment. The following table shows the trended base value of the property, the market value of the property, and the assessed value of the property. Assumimg a 2% Annual C.P.I.:
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Base Value Trended
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Market Value
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Assessed Value
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Year 1
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$500,000
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$500,000
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$500,000
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Year 2
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$510,000
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$480,000
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$480,000
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Year 3
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$520,200
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$510,000
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$510,000
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Year 4
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$530,604
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$550,000
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$530,604
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Frequently Asked Questions
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Do properties other than single family residences qualify?
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Yes. All real property qualifies.
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What is a comparable sale?
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A property sold with features that are similar to your property is a comparable sale. Comparable sales information helps you analyze the value of your home. For example, a property similar in location, zoning, size, number of bedrooms and bathrooms, age, quality and condition to yours that sold in the open market is a comparable sale.
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Where can I find comparable sales information?
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A good place to start is online. The Assessor’s website offers sales information for properties that have sold within the last two years. The same information is available from any Assessor District Office. Also, many websites offer sales information free of charge. A local real estate agent or title agent can also be a valuable source of information.
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Q.
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I filed my Proposition 8 Application by December 31. When and how will I know if my value will be reduced?
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You will receive notification by mail before July 1.
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Q.
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If my assessed value is reduced, how long will it last?
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Proposition 8 reassessments are not permanent, but last at least one year. The assessed value may decrease or increase depending on the market value of your property on January 1 of each subsequent year. Your assessed value will never increase more than the trended base value. It is important to remember, however, that base year values suspended by Proposition 8 reassessment values continue to increase by an annual inflation factor of no more than 2% per year.
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How Do I File for Proposition 8 Tax Relief?
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A claim form is available from several sources. Choose what is most convenient for you.
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Online: Forms are available at the Assessor’s website: assessor.lacounty.gov
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Email: Send us an email at helpdesk@assessor.lacounty.gov
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Phone: Call (213)974-3211
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Claim forms may also be requested by mail or in person at any of our offices listed in this brochure.
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What Form Do I Need?
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Decline-in-Value Reassessment Application (Proposition  (RP-87)
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1To read the law associated with Proposition 8, see Revenue and Taxation Code, Section 51. It is available online at www.boetaxes.ca.gov/property.
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2Property is assessed at the time of sale or transfer (base value) or new construction. That base value increases a maximum of 2% (trend) each year (i.e. trended base value).
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November 5th, 2007 -- Posted in Home Ideas and Tips |
An Eco Friendly Home.
Are you ready to go green? All kinds of people are trying to be more eco-friendly, and what better place to start than in your own home? Here are some tips for creating a greener home:
1. Recycling should be made as easy as possible so that it becomes second nature. Set aside a space for your own recycling center and make sure everone, down to the smallest tyke, uses it. Buy products with easily recycled packaging. Try to avoide containers that are made of combined material (cardboard and plastic for example).
2. Buy eco-friendly cleaning products. Better quality and less expensive than in the past, these products can be found right in your neighborhhood grocery store. Stay away from products that contain chemicals like petroleum, which take a hefty toll on the environment. You can even make your own, with safe ingredients like baking soda, vinegar and olive oil.
3. Compost! Keep a coffee can under the sink to toss vegetable peels, egg shells, coffee grounds (but no animal products!) Use the resultingmix for fertilizer in your garden.
4. Use flourescent light bulbs instead of incandescent bulbs. FLouresents last three to four times longer and have a lower impact on the environment.
5. Redecorating? Choose paints that contain low volatile organic compounds (VOC). These paints won’t off-gas or produce noxious smells.
6. Instead of vinyl flooring, consider using stone or other more durable materials that have a longer life cycle.
7. Clean your heating and cooling systems annually to make them more energy efficient.
8. Weatherproof windows and doors to keep out drafts and lower energy costs.
9. Keep your cat indoors. Domestic cats kill more than one billion small birds and animals every year ( one outdoor cat averages 40 kills per year). They upset natural predator/prey balances and eliminate ground nesting birds.
10. Lower your thermostat in the winter. Raise it in the summer. Save energy and reduce pollution in the process.
11. Dispose of old paint, chemicals and oil properly. Don’t put batteries, anti-freeze, paint, motor oil or chemicals in the trash. Use proper toxic disposal sites.
12. Plant a tree. They store carbon dioxide and “scrub” the air.
13. Wash dishes by hand in a basin and then use the dish water for outdoor gardens.
14. Plan to run all errands at one time to save gas and cut pollution.
15. Collect rainwater and use it to water your plants. Chlorine in tap water sometimes fades their green color, and fresh rain water will also make plants more pest resistant and healthier.
16. Use as much natural light as possible. Everything looks better and is in tune with the sun’s cycle. You can always close the blinds if you want to sleep late or take a nap. Try to bring in reflected light so direct sunlight doesn’t fade or degarde materials and furniture.
17. Maintain as many plants and trees as possible both inside and outside your home. They keep you in touch with nature and help take toxins out of the air.
18. Take a canvas bag or two with your to the grocery store to cut doen on wasted plastic and paper.
19. When buying clothing or fabrics, choose organically grown cotton or natural wool. Products made of these fabrics are healthier for you, your home and the overall environment.
