New Carbon Monoxide Law Takes Effect July 1

Carbon Monoxide

A new bill was passed in the State of California where, by July 1, 2011, homeowners are required to install carbon monoxide devices in their homes. The authors of the bill entitled SB 183, the Carbon Monoxide Poisoning Act of 2010, hope to prevent accidental sickness and deaths relating to carbon monoxide poisoning through detection and education by increasing public awareness.

Who This Requirement Applies To:

• Existing Single Family Residences
• Where appliances burn fossil fuels (e.g. coal, kerosene, oil, wood, fuel gases, and other
• petroleum or hydrocarbon products).
• Where the home has a fireplace or an attached garage

Penalties:

• Notice to Comply within 30 days
• $200.00 fine

For further information related to SB 183 and Carbon Monoxide requirements, please visit these websites:
1. http://www.nfpa.org/assets/files//PDF/Public%20Education/COSafety.pdf
2. www.carbonmonoxidekills.com
3. http://www.homesafetycouncil.org

Information provided by West Coast Escrow.

How Long Is the Wait to Buy After Foreclosure?

A sluggish housing market has caused millions of home owners to lose their home to foreclosure, short sale, or deed in lieu of foreclosure. But once these former home owners get a better handle on their credit, how long do they have to sit on the sidelines until they can secure future financing to buy a home again?

As an article in The New York Times notes “there are plenty of asterisks and conditions” when it comes to how long a borrower must wait after a “significant derogatory event,” like a foreclosure or short sale.

In general, however, The New York Times notes that the longest wait to buy again will come if there is a foreclosure in the former home owner’s past.

Fannie Mae and Freddie Mac have a three-year waiting period following a foreclosure, and a two-year wait following a short sale, deed in lieu, or discharge or dismissal of bankruptcy. However, if borrowers can justify that the circumstance for the foreclosure or bankruptcy occurred because of an illness or job loss — or other “extenuating circumstance” — that may help reduce their wait. But with no such extenuating circumstances, these former home owners may have to wait longer, even up to seven years following a foreclosure or four years after bankruptcy, the article notes.

For loans insured by the Federal Housing Administration, borrowers with perfect credit afterwards also will, in general, have to wait three years after a foreclosure and two years after a bankruptcy is discharged, The New York Times notes.

Following a short sale, borrowers will have to wait three years to secure another FHA loan — however, there are plenty of exceptions. Borrowers will have to wait three years if they were in default at the time of the short sale and had no extenuating circumstances. However, if the borrowers were on time with all their payments a year prior to the short sale, they may have no wait at all and might even qualify for an FHA loan immediately.

“The key is to avoid the foreclosure,” Andrew Wilson, a spokesman for Fannie Mae, told The New York Times. “That is what will help you be eligible for the shorter period.”

Source: “The Post-Foreclosure Wait,” The New York Times (June 23, 2011)

Inspirational Thought

“We are not affected by people, conditions, and things – but we ARE affected by how we think about them.”

-- William Walter

New Listing: Traditional, Charming Home in the Palisades

First showings Tues, June 21st, 11am-2pm. Set perfectly on a sweeping corner, this impeccable Traditional is charming, light and bright. Inviting walkway, wrap-around porch and entry with dutch-door. Large, open living and dining room with wood windows and wood blinds. Recently updated kitchen (with all new stainless appliances), leads to cozy sunroom. Family room opens to private yard with patio areas and historic Melaleuca tree. Ocean peeks from some rooms. Hardwood and tile floors throughout. Absolutely move-in condition.

16539 Chattanooga Place, Pacific Palisades, CA 90272
Offered at $1,150,000

For pictures and information of this and other wonderful properties please go to Michael Edlen's Featured Homes web page.

Fixed Mortgage Rates Continue to Fall

Freddy Mac released today the results of its Primary Mortgage Market Survey, which showed fixed-rate mortgages declining for the seventh consecutive week to new lows amid continuing weak economic and housing data. The 30-year fixed averaged 4.55 percent and the 15-year averaged 3.74 percent.

News Facts

• 30-year fixed-rate mortgage (FRM) averaged 4.55 percent with an average 0.6 point for the week ending June 2, 2011, down from last week when it averaged 4.60 percent. Last year at this time, the 30-year FRM averaged 4.79 percent.
  

• 15-year FRM this week averaged 3.74 percent with an average 0.7 point, down from last week when it averaged 3.78 percent. A year ago at this time, the 15-year FRM averaged 4.20 percent.
  

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.41 percent this week, with an average 0.6 point, the same from last week when it averaged 3.41 percent. A year ago, the 5-year ARM averaged 3.94 percent.

• 1-year Treasury-indexed ARM averaged 3.13 percent this week with an average 0.6 point, up from last week when it averaged 3.11 percent. At this time last year, the 1-year ARM averaged 3.95 percent.

Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

• "Fixed mortgage rates followed U.S. Treasury yields lower this week amid financial market concerns that the current lull in the economy is continuing. First quarter growth in consumer spending was revised downward by half of a percentage point to 2.2 percent, according to the Bureau of Economic Activity, consumer confidence in May was weaker than the market consensus forecast, and the manufacturing industry slowed for the third straight month in May.

• "The housing market is showing strain as well. The S&P/Case-Shiller® National Home Price Index fell 5.1 percent between the first quarters of 2010 and 2011, representing the largest annual decline since the third quarter of 2009. In addition, the index of pending existing home sales dropped 11.6 percent from March to April, led by the Midwest and South regions where the tornados and flooding occurred."

SOURCE Freddie Mac

Inspirational Thought

"You can either take action, or you can hang back and hope for a miracle...Miracles are great, but they are so unpredictable."

- Peter Drucker

Thinking of Moving This Summer? Here Are Some Helpful Tips

Each year, about 15 million American households move, with the majority changing households between Memorial Day and Labor Day. Unfortunately, this same time period also is peak season for moving company scams.

• To avoid falling victim to common scams, experts in the moving industry recommend consumers do the following:
• Go with a company that has a well-known and recognized name
• Get a referral from friends, family, neighbors, and colleagues
• Ask for an in-home estimate, to ensure accuracy of the estimate
• Don’t always go with the lowest price
• Do not pay up-front fees
• Conduct research on the government website protectyourmove.gov to find out if a mover is licensed for interstate moves by the Federal Motor Carrier Safety Association.
• Get all details of the transaction in writing
• Request a copy of “Your Rights and Responsibilities When You Move,” a brochure created by the Federal Highway Administration that outlines consumers’ rights. Federal law requires movers to give this to customers prior to an interstate move.

Inspirational Thought

"Most people never run far enough on their first wind to find out they've got a second... Give your dreams all you've got and you'll be amazed at the energy that comes out of you."

- William James

Loan Shop Before Home Shop

Prospective home buyers typically begin their search for a home many months before they anticipate actually making a purchase. Their quest most often begins by using various online sites and occasionally going out on Sundays to stop by open houses. During this preliminary phase, many buyers prefer to not work with any particular real estate agent, and they begin educating themselves about the market in various areas of interest to them.

After several months, many of these searchers have become familiar with the housing market and may have agreed to work with an agent to help them in the process. The next step frequently involves seeing several homes by appointments with that agent and, by that time, they will usually have been advised to meet with a lender to get pre-approved for financing. Often the buyers are quite confident that financing will not be difficult at all, knowing their credit scores are high and that they have 20 percent of a down payment already in their bank and/or brokerage accounts.

Many agents accept this confident and unconcerned response from their clients about financing, and may be hesitant to do more than suggest a meeting with loan brokers. As a result, before any lender has actually been involved in pre-approving a loan, a purchase offer may be written for the home the client feels is an ideal match. Loan brokers can write a letter stating that the prospective buyer has been pre-approved for a loan. However, this pre-approval may amount to little more than what is more accurately termed a loan pre-qualification, based on what the buyers have stated to the lender about their income levels, monthly fixed costs, and on their credit scores.

There are several possible disadvantages of approaching the purchase process without actual pre-approval of a loan. If there are multiple offers on the identified property and one of them had already received full loan approval, they will be far more favorably viewed by the seller than will one that essentially has only gotten pre-qualified for a loan. Some sellers may feel uncomfortable taking their home off the market for a period of three to four weeks while waiting for the buyers to remove their loan contingency, and in today’s loan environment it can easily take that long for many lenders to complete the process.

Another drawback of not having a pre-approved loan before writing an offer is that there is often a sense of pressure as the loan contingency date gets closer during escrow. Perhaps the seller has by then accepted a backup offer from another party who already has financing arranged. The buyer may be put in the uncomfortable position of needing to risk losing the home if the loan has not been approved in time, or of taking a chance and removing the contingency before being fully assured that a loan is in place. Sometimes the process is unexpectedly delayed. Loan underwriters can ask for more details about some items on the potential borrower’s tax returns or other information in the loan application. In addition, many lenders will not schedule a property appraisal until after basic loan approval has been determined, and this in turn can easily delay the process by several days.

There is a huge negotiating benefit in having financing already approved before writing an offer. The buyer who can make an offer that has no loan contingency will obviously have much greater leverage. Most sellers will find it highly appealing to know that all contingencies might be removed in a couple of weeks, rather than perhaps taking up to nearly a month.

Thus, we highly recommend that any potential buyer take the time and make the necessary effort to get the loan process started well in advance. At the least, they can benefit by learning the various alternative types of loans currently available, with some understanding of the advantages some programs may have for them over others. They can be far better assured of succeeding in purchasing their ideal home when it is identified by doing this shopping well ahead of time. We are glad to provide several excellent and proven-reliable sources of loans to anyone who would like to get started in the process.

As Published in the Santa Monica Mirror

Pacific Palisades Market Update- June 2011

Special to the Palisadian Post

As of May 31^st, there were 126 single-family Palisades residences listed in the Multiple Listing Service (M.L.S.), which is nine percent lower than this time last year. So far this year 91 Palisades homes have sold (which is four percent lower than this time last year), and there are now 48 homes in escrow in the Palisades.

Median sale prices are currently $1,715,000, which is off 10% from the same period last year. The average sale price per square foot has dropped by seven percent as compared with the same period in 2010, and is now at $644 per square foot.

The lowest-priced available home is a 2-bedroom, 2-bath on Swarthmore at $859,000. The highest-priced property is on Evans Road. This 7-bedroom, 7-bath house is listed at $23,500,000.

The lowest sale price so far this year was a 2-bedroom, 2-bath on Livorno, which sold for $825,000, which was over the asking price of $750,000. The highest sale so far this year was a 3-bedroom, 5-bath on Alta Mura in the Riviera, which sold for $6,350,000.

There are 39 Palisades condominiums/townhouses on the market. They range from 1-bedroom, 1-bath in the Edgewater Towers on Sunset Blvd. offered at $374,900, to a 3-bedroom, 2.5-bath townhome on Haverford for $1,795,000. Seven condos are currently in escrow. There have been 16 condo sales so far this year, ranging from $410,000 for a 2-bedroom, 2-bath on Tramonto Drive, to $1,300,000 for a 3-bedroom, 3.5-bath on Palisades Drive. The median condo sales price is $700,000, which is up five percent over the same period last year.

There are currently 24 pieces of raw land available, ranging from a steep slope with 17,000 sq. ft. on PCH, being offered at $90,000 to $19,900,000 for over an acre of sloped land on Corona Del Mar in the Huntington.

There are currently 56 leases in the Palisades. They range from a 1-bedroom, 1-bath apartment on Sunset asking $2,000 per month, to a 7-bedroom, 9-bath home on Rivas Canyon asking $70,000 per month. So far this year, 99 Palisades homes have been leased. The highest lease was a 4-bedroom, 4-bath on Alta Mura for $16,500 per month, and the lowest was $2,595 per month for a 2-bedroom, 2-bath on Sunset.

Inspirational Thought

The gem cannot be polished without friction, nor man perfected without trials.

- Chinese Proverb