Real Estate Information

A short sale: a sale in which the homeowner owes more on the loan than the property is worth.  In order to sell the home, the lien holder or holders, must approve the sale since the amount owed to the lien holder will be 'short' of what is currently owed by the borrower. 

Last month, a new California law was passed to help protect homeowners pursuing short sales.  The law bars first and secondary lien holders from going after sellers for money owed after the short sale closes.  The previously existing law offered homeowners this protection, but only applied to the primary lien holder; it did not apply to second lien holders.  This new law will be put into effect immediately, and now prohibits secondary lien holders from collecting deficiency funds after the short sale closes.  In turn, this will allow homeowners closure in the short sale process.  The homeowner will not be held responsible for additional payments on the property.  This is to be considered a victory for California homeowners.

As unemployment remains one of the top hurdles for our country, Obama has announced on Thursday a new plan to help struggling homeowners who are currently out of work.  As of August 1, 2011 the Obama administration is expected to help tens of thousands of borrowers across our country.  In this new reform, eligible unemployed homeowners could be allowed to miss mortgage payments for up to one year as long as they are job-seeking.  One of the changes requires loan servicers to extend their grace periods for qualified FHA borrowers from 4 months to 12 months.  The new reform will also require loan servicers to take part in the government's "Making Home Affordable Program," which is set to help prevent foreclosures.  These new changes follow the administration's "Hardest Hit Fund," which helped as many as 100,000 California residents.  Through this program, California received $2 billion dollars, and helped many households avoid foreclosure.  As the unemployment rate is still one of our country's top priorities, Obama is continuously looking for ways to keep families in their homes.

On July 1, 2011, a new California state law goes into effect that requires homeowners to install carbon monoxide detectors in their homes.   Properties affected by this are single-family homes that have an attached garage, a fireplace, or a fossil-burning heater.  People who own other types of properties, like condos, have until 2013 to comply.  Homeowners who do not install carbon monoxide detectors by July 1st  will receive a 30-day notice.  After that, if they still don’t install the detector, they face a maximum fine of $200 for each offense. 

You can get a carbon monoxide detector at most hardware stores, and they range in price from $20 to $90. 

Source: Homes need carbon monoxide detectors by July 1

Have you always wanted to live on the beach but couldn’t quite afford it?  This might be your chance!  In order to meet the state requirements for affordable-housing units, Solana Beach has to build between 140 and 145 affordable housing units over the next 10 years.  The city is looking to build a mixed-use complex, tentatively called “The Pearl,” on South Sierra Avenue, just north of Via de la Valle.  The complex would have three levels with a 1,300 square-foot market on the ground floor and 10 housing rental units above. Families of four who make between $27,500 and $48,700 per year would be eligible to apply to live there. 

While some residents of Solana Beach are resistant to the idea of having low-income housing in their community, this project could be very beneficial for them.  Councilman Dave Roberts says that Solana Beach has been sued in the past for not offering enough affordable housing.  A project like The Pearl would save taxpayers hundreds of thousands of dollars in avoided legal fees.  Building low-income housing would also give people like teachers and police officers the opportunity to live in Solana Beach.

Source: Solana Beach to build affordable housing on coast

CNN Money has listed San Diego as the #1 Real Estate Turnaround Town in America.  SD showed a 1.6% price increase in 2010.

It's a great time to buy a house, folks!

http://money.cnn.com/galleries/2011/real_estate/1104/gallery.10_turnaround_towns/index.html

On May 23^rd, the state Attorney General’s office announced that they have formed the California Attorney General's Mortgage Fraud Strike Force which will work to protect homeowners from scams related to foreclosure counseling and loan modifications; prosecute scammers; and target crimes connected to subprime mortgages.  Says Attorney General Kamala Harris, "We will work to safeguard the homeowner at every step of the process - from origination of a loan to its securitization, and we will prosecute to the fullest extent of the law those who take advantage of trusting California families.  We are setting a high bar for other states and we insist that homeowners be protected, respected, and informed."  California has been hit hard by the foreclosure crisis.  Last year, there were 546,669 foreclosure filings against homes in California, and it is projected that the number of homes in the foreclosure process between 2009 and 2012 will reach 2 million. 

For further information or to file a complaint online with the Attorney General's office, visit: http://oag.ca.gov/consumers.

Source: Attorney General Kamala D. Harris Announces Creation of Mortgage Fraud Strike Force to Protect Homeowners

Because of her commitment to the San Diego community and her involvement with Big Brothers Big Sisters of San Diego County, Kimberly was chosen as the May, 2011 Young Professional of the Month by the San Diego Young Professionals Committee.  To see the write-up, click on the link below.

Young Professional of the Month: Kimberly Schmidt of Allison James

It is not uncommon these days for people to never meet their neighbors.  The online developers at Home Elephant wanted to revive the days when we not only knew our neighbors, but also counted on them when we needed help or even just a cup of sugar.  Says Home Elephant co-founder Chandler Powell, "We've seen how social media can be about reaching a global community.  This is kind of the reverse of that.  What's the point of having 4,000 friends if you don't know the people around you?"  In order to accomplish this, Powell and his friends created this free app that will help you meet your neighbors and have a way to get in touch with them in case of a neighborhood emergency. 

 To use the app, visit www.homeelephant.com and sign in with your Facebook account.  Once you create your account, enter your address, and you’ll be given at least one neighborhood to join.  After joining a neighborhood, you can push out alerts to your online "neighbors" and see alerts others have posted. You can schedule neighborhood events, find out if someone has found your lost dog, or just see what’s going on in the neighborhood.  If you notice suspicious activity, you can push out an alert to your neighbors.

Home Elephant is still fairly new, and so far there are 3,898 neighborhoods online in more than 38 countries.  Here in San Diego, there are about 120 neighborhoods using the app. 

Source: How to Be More Neighborly With a New Web App

According to the California Association of Realtors (C.A.R.), the market conditions here in California indicate that you should purchase your home instead of rent it.  Home prices are still well below where they were two years ago, and mortgage rates are low right now, giving qualified buyers a great opportunity to purchase a home. 

For example, if you look at a median-priced home of $301,430, the monthly housing costs associated with owning it are $1,590.  Note that this assumes you are making a 20 percent down payment and financing with a 30-year fixed rate mortgage at 4.62 percent.   If you look at the median rent of a three-bedroom, two-bathroom apartment plus renter’s insurance, your monthly costs here in California are $1,810. When you compare the numbers, you can see that buying a home would save you $220 per month, coming to about $2,600 in savings over the course of a year.  In addition to this, tax laws allow homeowners to itemize and deduct their mortgage interest and property taxes from their taxable income, giving homeowners more savings.

Keep in mind that there are costs that go into purchasing a home, but if you take these into account and are still able to buy, now may be a great time to do so.

Source: Renting Versus Buying: 2011

Bank of America announced on March 10th that they will start programs for military members who have fallen behind on their mortgage payments. 

Bank of America will help military servicemen and women who are leaving active duty and who are underwater on their home loans in two ways.  First, the principle of the homeowner's loan will be reduced to as low as 100% of the current market value.  Second, as needed, the interest rate of the loan will be reduced, and the time to pay back the loan will be extended, both of which are intended to achieve more affordable mortgage payments.

On April 1^st, Bank of America will also begin offering active-duty military members who are under the Servicemembers Civil Relief Act (SCRA) protection a reduced 4% interest rate on their mortgages.  The 4% rate will be applicable for the duration of the service member’s active duty and for 12 months after his/her release.

This program will apply only to loans owned and serviced by Bank of America.

If you have questions about this program, Bank of America is encouraging military members to call the customer service number dedicated to military customers at 888-325-5357.

Source: Bank of America