Deeds-in-lieu is a foreclosure alternative that is gaining popularity with the lenders reports the Los Angeles Times on June 27, 2010.  The key seems to be that “not only is it cheaper for lenders to do deeds-in-lieu to gain control of those properties, but with the current mortgage rates below 5%, they’re likely  to be able to resell the properties faster and on potentially more favorable terms in the summer and fall.”

A deed-in-lieu takes place when the mortgagor transfers all interest in the real property to satisfy the loan instrument and avoid the foreclosure proceeding.

The homeowner sees this as “’a very expeditious way to move on’ for underwater borrowers who are facing potential foreclosure.” They are tired of dealing with low ball offers, the stress of working on a short sale and the real estate agents and embarrassment of facing their neighbors of the current situation.

A downside of the limitations of a deed-in-lieu is it does not work for all – “if you have equity in the property, you’ll probably want to pursue a loan modification first, rather than hand over your equity stake to the lender.”

The article also notes that “deeds-in-lieu usually don’t work when there are multiple mortgages from different creditors encumbering the property. Also though deeds-in-lieu do less damage to borrower’s credit histories than foreclosures or bankruptcies, they definitely leave a mark. Fair Isaacs, developer of the widely used FICO credit score, says on its MyFico website that deeds-in-lieu and short sales are both treated as ‘not paid as agreed’ accounts, and are treated the same by the FICO scoring model.”

If you are interested in leasing,  purchasing a property or selling a property in Malibu, Pacific Palisades, Calabasas or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582

Be the first to join the discussion»

It is a buyer’s market when it comes to real estate in California– from Malibu, Pacific Palisades, Calabasas, Agoura, Santa Monica, Venice, Marina Del Rey and other nearby areas. It is not the best time to be a seller, but to be a buyer the conditions could not be better. Low interest rates, home values and inventory all point to buy, buy, buy. The only thing standing in the way is money, but if people can get money and they are in the right place at the right time, buying real estate is a great idea – especially in these highly desirable locations.

If the real estate market were a car the first time home buyer would be in the driver’s seat. Not only to first time home buyers get to take advantage of low mortgage rates, low home values, and a decent inventory of homes for sale, but they also don’t have to sell a home before they buy a home.

There may not be a better time to be a home buyer, especially a first time home buyer, for a long time. The first part of 2010 displays ideal conditions to get out there and start looking.   Buyers who are pre-approved and have at least 20%-25% downpayment available can take advantage of this current opportunity.  Even CNBC reports on April 1, 2010 that the “high end boom is a trifecta of lower interest rates, bank lending and consumer confidence.”

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582

Be the first to join the discussion»

Sourced from: Kinetic Content Library

Great news from the Malibu Times, Malibu City Council has made an appointment to the planning commission of a new Commissioner and there is further discussion on the proposed plan of the multi-million dollar renovation of the new city hall.

Malibu resident Roohi Stack is the new commissioner, Stack is involved in many local groups including the Point Dume Marine Science School PTA and the Junior League of Los Angeles.

Stack says that “the role of the Malibu Planning Commission is to provide informed decisions on residential and commercial building projects that are good for Malibu environmentally, socially and economically…Malibu is a unique and wonderful community.”

On the subject of development, with the remodel plan of the new city hall estimated to cost $5 million, the council will continue discussion and possibly vote on whether to finance the project through the obtainment of certificates of participation not to exceed $7 million. Certificates could be sold as early as March 8th.

An exciting time is ahead for Malibu!

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582

Tax, Tax and more tax! Not the most exciting topic we know…but all is not lost! – We all know that details on the $8000 first time homebuyer tax credit were readily available. But information on the $6,500 was always hard to come by.

However, now the IRS has issued official guidance – several months after President Obama signed the legislation creating the program.

The IRS posted its revised Form 5405 on its website on Jan. 15, six weeks after the agency warned taxpayers not to file claims for the $6,500 credit without using the revised form and new instructions. Homeowners who have occupied the same property as a principal residence for any five consecutive years during the previous eight years may now be able to claim a tax credit on a purchase of another home they intend to use as a principal residence.

The maximum purchase price on homes eligible for the credit is $800,000. Buyers are not required to sell their previous home, but they must be able to demonstrate that the replacement home they buy is or will be their principal residence. The credit is for as much as 10% of the price of the replacement home, capped at $6,500. The purchase contract must be dated from Nov. 7, 2009, to April 30, 2010, and the closing must occur no later than June 30. Members of the armed forces and federal diplomatic and intelligence personnel stationed overseas get an extra year to claim the credit. Note that taxpayers who sell their homes within a 36-month period after purchase or use the property for rental or business have to repay the credit.

The new IRS guidance also spells out the revised income limits for home buyers claiming credits: Your modified adjusted gross income must be $125,000 or less if you are single, or $225,000 or less if you are married filing jointly. Above these limits, the allowable credit amount begins to phase down in increments, and it is eliminated once incomes reach $145,000 for singles and $245,000 for married joint filers.

So there you have it, you have 14 weeks to sign a contract and then 5 months to close! The time to buy that Malibu home is now!

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582

When it comes to home repairs, we all know that procrastination is the name of the game!

These days with foreclosures and short sales many repairs are not carried out, so by spending a little money on the smaller jobs can reap rewards in making your home stand out when it comes to selling!

Here in Malibu homeowners are well aware that looking after your home is common sense, however knowing what repairs and odd jobs to focus on if you are selling is not so obvious! Realty Times has published a great article explaining more!

Interestingly your air conditioning unit is an area to focus on! In particular with regards to air filters, experts say that 60% of service calls are caused due to dirty filter related issues – therefore, by changing your filters regularly ensures that you keep your unit maintenance costs under control! It can also save you money as when your unit is maintained properly it works at its maximum efficiency! With estimated savings of around $100 per year just by changing your air filters, its not chump change! – A great reminder to check your filters is when you get your bill!

Also leaking faucets and bad caulk are other areas which buyers focus on. As we have written before a leak can cause many more problems!

So, in short – It is all about appearances, if your home looks maintained then buyers will feel it is worth purchasing, if there are leaky faucets, broken or cracked tiles and caulking as well as a air conditioning unit that limps along then they may thing the home is in need of serious repairs!

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582

THIS IS DEFINITELY EXCITING NEWS!

According to the Los Angeles Times the housing market has strengthened!

December usually is a slow month for home sales, over the holidays the last thing on anyones mind is buying a home. However, not December 2009 for Southern California, where the median sale price rises 4% over the same period a year earlier, and sales jumped 12.1%! The best since 2006! (See our related post – Malibu Pending Home Sales Rise Again!)

The median price paid for a Southland home rose 4% to $289,000 last month from December 2008. Rebounding home prices could help the Southern California economy recover from its slump, as a stronger housing market could lead to hiring on construction sites and in real estate sales, title and escrow offices.

People are starting to realize that now is the time to move – rates are low and prices are right – if you are outgrowing your existing home or are downsizing, now is the time to make that move! For some, the spring homebuying season may have come early!

Naturally, one factor driving sales is the April 30 expiration of tax credits for home buyers. The role of the federal government in the housing market remains key.

Also excitingly for the luxury market that is Malibu, the percentage of Southern California homes that sold for more than $500,000 rose to 20.2% of all sales in December from 16.5% a year earlier. The market is starting to move significantly, in some cases with multiple offers on properties.

So if you are thinking about a move to Malibu – now is the chance to take advantage of the market and get going!

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582

Things are certainly heating up in Real Estate right now, which is very, very exciting!

The National Association of Realtors has the latest on Pending Home Sales, the news is again, fantastic! – The latest figures are the ninth consecutive month for a rise in the number of pending home sales in the pending home sales index for the nation! The first since 2001 when the index was created. For October 2009 the index increased 3.7% to 114.1 from 110.0 in September, and is 31.8% above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR’s Cheif Economist, says that he expects home sales to be 5.5 – 6 million this year. Here in the West the index is 21.9% above October 2008. 

Yun did warn that there may be a slight slow down in sales as the pend up demand released by the First Time Buyer Tax Credit eases. However, despite skepticism by some, it is clear that we have reached a turning point. Particularly with the recent news that there have been 97 home sales in Malibu during the past 12 months, with a median sales price of around $2 million.

Overall this increase in pending homesales again is fantastic news! Falling inventory as well as low mortgage rates offer a great opportunity for buyers. Also, as we mentioned before, home prices in the area are relatively stable!

With mortgages in mind, the National Association of Realtors has recently said how the Federal Housing Administration mortgage insurance program is a critical part of the American housing fabric and has never been more important than it is in today’s market. So far in 2009, nearly 80 percent of all FHA insured purchasers are first-time homebuyers. The First Time Homebuyer Tax Credit has of course helped boost home sales in the region, particularly as it is estimated that there are now 3 million renters nationwide who would qualify to purchase a new home – so what more can you say? Now is the time to get off the fence!

In Malibu in the luxury market homes are still selling with foreign buyers wanting that beautiful trophy home! In short – now is the time to act if you want a home in Malibu for the new year!

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582

Green Real Estate has always been Malibu’s thing – with the need for more efficient use of water to ensure a good water supply to the city  - it is something which has been extremely popular here in the west coast, which has been leading the way with the general trend – the California Association of Realtors even launched a green website!

Driving energy efficiency amongst the existing housing stock is one thing - even NAR encouraged people to become less wasteful by converting their HQ in Washington DC to be more “Green“. But supplying the market with greener new builds is something which is important and requires the whole industry to get involved. Malibu is a perfect flagship city for such projects due to its trendy image in the real estate world. Even local celebrities are going green with their real estate – look at Cindy Crawford!

 According to a new study from the U.S. Green Building Council and Booz Allen Hamilton, construction in the green-building industry will support 7.9 million jobs over the next four years while pumping into the American economy $554 billion. Currently, 2 million American jobs are supported by the same industry and more than $100 billion in gross domestic product and wages is generated. From 2000 to 2008, $178 billion in gross domestic product was contributed to the economy and 2.4 million direct/indirect and induced jobs were created or saved which generated $123 billion in wages.

That represents a huge number of jobs and a vast sum of money and, an opportunity to expand on!

With buildings in the United States being responsible for 39% of CO2 emissions, 40% of energy consumption, 13% water consumption and 15% of Gross Domestic Product per year, making green building a source of significant economic and environmental opportunity with the eventual goal of ALL building to be green.

In fact Malibu City Council even recently proposed a Green Building Ordinance! We wrote about some Environmentally Friendly homes in Pacific Palisades hitting the market a couple of years ago!

Also, going green and buying a green home may not just save you money in running costs, it can also bring rewards when it comes to the time to sell, with green homes commanding higher prices than regular real estate!  

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582

We have all heard the press shouting about how housing affordability has improved, well, here in California the news is great. The California Association of Realtors has exciting news to report. Their First-time Buyer Housing Affordability Index stood at 64 percent in the third quarter of 2009 compared with 55 percent (revised) in the third quarter of 2008.

The minimum household income needed to purchase an entry-level home at $247,150 in California in the third quarter of 2009 was $43,500, based on an adjustable interest rate of 4.79 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,450 for the third quarter of 2009. This is fantastic news!

The income level figures are even more interesting. At $43,500, the minimum qualifying income was 19 percent lower than a year earlier when households needed $53,700 to qualify for a loan on an entry-level home.

However, despite this great news, things really are on the turn: The First-time Buyer Housing Affordability Index declined 3 percentage points in the third quarter of this year compared with the second quarter of 2009, due to a 10.2 percent increase in the price of an entry-level home. (See our article about PRICES RISING IN THE AREA!)

This means that now really is the last chance to take advantage and snap up a great home at a bargain price in Southern California. Here in Malibu the market has not been this good for buyers in years!

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582

Fantastic news from NAR! The National Association of Realtors has released data showing that, nationally the number of pending home sales is up for the 8th month in a row – which is record breaking!

The Pending Home Sales Index, NAR’s forward-looking indicator based on contracts signed in September, rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.

NAR’s Chief Economist Lawrence Yun said what everyone was thinking – that the increase is due to first time homebuyers coming to the market – thanks to the tax credit and the market conditions. With 3 million renters estimated to be eligible for buying a home it is a great time to buy!

Here out west the increase was great! The index jumped 10.2 percent to 143.8 and is 23.7 percent above a year ago. Also as we recently reported there has been noise about price rises!

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Subscribe to our blog using our RSS feed. (Click here!)

Judy Kunisaki – CA DRE license 00963582