Specializing in Hillside & Canyon homes of Mt Washington, Highland Park, Eagle Rock and surrounding communities

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Last Week in the News


The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending January 13 rose 23.1%. Refinancing applications increased 26.4%. Purchase volume rose 10.3%.

The producer price index, which tracks wholesale price inflation, fell 0.1% in December after increasing 0.3% in November. For the year, wholesale prices are up 4.8%. Core prices — which exclude food and fuel — rose 0.3% in December.

The National Association of Home Builders/Wells Fargo monthly housing market index rose four points in January to 25 from a reading of 21 in December. It was the highest level since June 2007. An index reading below 50 indicates negative sentiment about the housing market.

The combined construction of new single-family homes and apartments in December fell 4.1% to a seasonally adjusted annual rate of 657,000 units. Single-family starts increased 4.4%. Multifamily starts fell 20.4%. Applications for new building permits, seen as an indicator of future activity, fell 0.1% to an annual rate of 679,000 units. Housing starts for the year are up 24.9%.

Existing home sales rose 5% in December to a seasonally adjusted annual rate of 4.61 million units from a downwardly revised 4.39 million units in November. The inventory of unsold homes on the market decreased to 2.38 million, a 6.2-month supply at the current sales pace, down from a 7.2-month supply in November.

Initial claims for unemployment benefits fell by 50,000 to 352,000 for the week ending January 14. It was the lowest level since April 2008. Continuing claims for the week ending January 7 fell by 215,000 to 3.432 million.

Upcoming on the economic calendar are reports on pending home sales on January 25 and new home sales on January 26.


Inman News Announces the People's Choice Most Influential
Real Estate Leader in 2011




The readers of Inman News™, the leader in real estate and technology news, have selected RE/MAX founder Dave Liniger as the People's Choice Most Influential Real Estate Leader in 2011.

Liniger's selection, based on a popular vote by readers, was announced today during the Inman News Real Estate Connect® conference in New York City, which runs through Jan. 13 at the Marriott Marquis hotel in Times Square.

Liniger, 66, who co-founded RE/MAX with wife Gail in 1973, serves as chairman of the board for the global franchisor. Liniger oversaw the expansion of RE/MAX global franchise operations to eight additional countries in 2011 – there is now a brand presence in nearly every country in Central America and South America, and the franchisor has almost 90,000 affiliated real estate sales professionals in more than 80 countries.

"Our knowledgeable Inman News readers cast their votes for a true visionary of our industry," says Tim G. Smith, CEO of Inman News. "We are honored to include Dave Liniger among our list of influential past winners."

Liniger was also selected to the annual Inman 100 list of Most Influential Real Estate Leaders for 2011 — that list is separate and distinct from the individual People’s Choice recognition, and is based on a reader nomination process and an in-house review and selection process by Inman News.

-The Inman News Team

© 2012 Inman News™
1100 Marina Village Parkway, Suite 102, Alameda, CA 94501
Customer Service: customerservice@inman.com or 1.800.775.4662
Buying a Home in a Short Sale or Foreclosure Not Always a Bargain

Process fraught with lengthy bank approvals and uncertainty over the condition of homes for sale.

With more short-sale and foreclosed homes coming on the market in Sherman Oaks, buyers might be tempted to buy what may seem at first glance a real bargain.

After all, the price has already been adjusted downward on these properties at a time when the supply of homes for sale Valley wide is scarce, around 3,000, about half the number that's typically for sale.

But realtors caution that short sales can be an arduous and frustrating process.

“There’s no guarantee when you’re in a short sale that you’re going to end up with the house,” said Jim Wagner (jimwagner.net), associate manager at Rodeo Reality in Sherman Oaks.

Waiting for bank approval can take anywhere from a couple of months to four months to sometimes as long as a year, realtors say. Meanwhile, “you’re waiting for the bank to say yes or no, so you’re not out shopping for a home,” added residential realtor, Mary Baldwin (marybaldwin.com) of the John Aaroe Group in Sherman Oaks.

The reasons for the long waits are varied, Wagner said. One reason is that the bank wants to make sure it’s not being defrauded by the owner. Owners can stop paying their mortgage, negotiate a short sale with the bank and then have relatives “buy” the property, now with a downsized mortgage and “rent” it back to the previous owners.

“This happens more frequently that you would like to think and why the short sale process takes so long,” Wagner said. “The bank wants to make sure they’re not giving the house back to the folks who couldn’t make the payments.”

Sellers who want to do a short sale have to prove hardship and justify why they can’t afford to continue paying the mortgage. Their situation needs to be investigated by the bank which includes examination of tax returns, employment, marital status and other personal information. Then the property itself needs to be compared against other homes in the area to determine actual worth. Any offer to buy is also equally thoroughly examined.

A second reason why short sales take so long is that homes may have a number of liens on them and the other debt holders also have to agree on the sale price and what portion they will receive, Wagner said.

Previously, if a home sold in a short sale, those same debt holders could still pursue the homeowner to collect the money owned via a deficit judgment.  But recent consumer legislation banned the use of such judgments with the result that debt holders are more insistent on getting paid at the time of the short sale, slowing the entire process.

In fact, the short sale process may take so long or fail to find buyers that property owners finally are foreclosed upon. The bank may then take back the home, evict the owner or renters and go through what is basically a minimal, cosmetic rehabilitation to sell the house as is.

“Unlike an owner, the bank doesn’t know the true condition of the home,” Wagner said, adding that, for buyers, home inspections are extremely important to discover problems before the sale. Even then,  the buyer could end up correcting those problems, reducing the "bargain price"  they thought they had found.

“You’re going to end up paying for things the seller would pay for in a normal sale—the transfer tax, termites, repairs, “ Baldwin said. “Those will come out of your bank account.

“So bargain REOs (real estate owned properties) are not the slam dunk everyone thinks they are,” she said.                   
          
                                                                                By Vicki Torres

Conforming Loan Limit to Remain at $625,500 / FHA Loan Limit increased to $729,750

On Tuesday, November 15th a deal was reached regarding increasing loan limits. If you've been following the debate, you saw that Fannie Mae and Freddie Mac have become the scapegoat for the mortgage crisis and financial collapse that occurred in 2007 and 2008. Many in Washington believe that it was not Wall Street, but Fannie Mae and Freddie Mac that caused the housing crisis. This is a ridiculous assumption, however, in an election year with a full assault on Fannie Mae and Freddie Mac increasing the conforming loan limit could not pass in Congress and will remain $625,500.

FHA on the other hand has not been a political target and Congress was able to get a compromise deal worked out in which the FHA loan limit would be temporarily increased to $729,750 until December 31, 2013. This will become law on Thursday, November 17, 2011.

On a positive note, although not everything we had hoped for, a $750,000 house will be able to be purchased for about $26,250 plus closing costs instead of $150,000 plus closing costs! It's also an extension with a two year commitment. That should be a huge stimulus for the Real Estate Market which will speed up a recovery to higher prices. In my view it's a "homerun" for Real Estate Professionals!


 
 The 12 Days of Mount Washington "Thanksmas"
The author proposes making Christmas the holiday of thanks and composes the second half of a "Thanksmas" list of gratitude.

By Kim Axelrod Ohanneson
December 30, 2011


We’re still smack-dab in the middle of the holiday season and I, for one, am feeling very thankful for family, friends, health and joy.

I’m thankful for–but a little afraid of--the tomatoes still popping up on my balcony as January approaches. The vine appears dead; are the tomatoes bewitched?

I’m grateful for the Hill’s stairways, streets, and trails as I pass them in my car; I know they’re there if I ever again have time to walk.

I’m grateful for anyone willing to navigate Mount Washington’s confounding streets to my house. There are just enough of the latter foolhardy souls to keep me from hermitude.

Bottom line, I am overflowing with Thanksmas spirit as I continue to look back at the year that was.

The Twelve Months of Thanksmas –


On the 7th month of Thanksmas, Mount Washington gave to me: a school produce collective.

At Mount Washington Elementary School, kids aren’t just learning reading, writing and what used to be arithmetic, they’re making kale chips! And eating them!

Of course, there’s more. The collaborative partnership between principal Elizabeth Valentino, the dedicated teachers, committed volunteers, and dynamic parents like Natasha Stanton who helped spearhead the Mount Washington Produce Collective fundraiser. The little school on the Hill is raising dynamic and creative citizens of the world.

And they’ll all grow up eating their vegetables. Thanks, Mount Washington Elementary!

On the 8th month of Thanksmas, Mount Washington gave to me: teens that make a difference.

This isn’t the only community with a dedicated “It takes a village” approach to raising kids--and it actually wasn’t a village that raised these teens, but babysitting cooperatives. The teens and young adults who have grown up on the Hill, even if they’ve migrated elsewhere, are a pretty impressive bunch: serving our country, designing disaster relief shelters, performing in nationally acclaimed theatrical productions.

Youth certainly isn’t wasted on Mount Washington’s young. Thanks for making us proud, young adults!

On the 9th month of Thanksmas, Mount Washington gave to me: a river for a neighbor.

Here is a great thing about Mount Washington, its neighbor is the Los Angeles River. The river may have been mostly a concrete channel--and drag race film location--for decades, but thanks to the perseverance of Councilman Ed Reyes and other L.A. River advocates, Mount Washingtonians will hopefully, in future decades, have a front row seat for the nation’s most dynamic civic works project: the reclamation and greening of the Los Angeles River. Thanks, Ed Reyes and Los Angeles River lovers everywhere!

On the 10th month of Thanksmas, Mount Washington gave to me: a mural discussion.

The discussion about the mural to memorialize Jack Rohman was heated. And passionate, loud, long and not always pretty. The artists spoke. Community members spoke. Self-Realization Fellowship members spoke. Jack’s parents spoke. Even the Self-Realization Fellowship spoke through Lauren Landress, Assistant Director, Public Affairs.

It was public discussion and it was important to have. I’m thankful that it happened. I hope it continues.

On the 11th month of Thanksmas, Mount Washington gave to me: neighbors new and known.

Annoying neighbors are failsafe comic staples in sitcoms and big screen comedies. Alternatively, articles in women’s magazines feature neighbors who cook a week’s worth of meals together, throw block parties in the summer, and create collective beautification projects.

Neither group describes my block.

For the most part, we nod, we wave, we have brief, friendly chats. And yet, I realize I write about my neighbors with surprising frequency because a neighborhood isn’t, usually, about big projects, but about daily life: holiday burglaries, coyote sightings, new flowers in the front yard, a smashed guard rail on Mount Washington Drive, the loan of an out-of-print book.

And not one of my neighbors could be caricatured in a comedy. Here’s looking at you, neighbors!

On the 12th day of Thanksmas, Mount Washington gave to me: art everywhere.

There’s a long legacy of art, art salons, artists, writers and musicians in Mount Washington, but it's still astonishing that all that creativity remains woven into the fabric of the community. Whether it’s kids writing songs about chaos theory, murals on public stairways, authors writing about dancers, or pumpkins carved into masterpieces, art is as much a part of Mount Washington as nature.

And I am so grateful that it is.

The Twelve Months of Thanksmas Finale

Here’s what I realize when I look back on the last year: twelve days, twelve months, even twenty-five years of living on the Hill isn’t nearly long enough to express my gratitude for all things Mount Washington.

And I haven’t even tried the kale chips.

Happy Thanksmas, Mount Washington!  Here's to a great 2012!

Enjoy Eagle Rock Video!

Excellent time to buy now...


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RE/MAX TriCity
811 N. Central Ave. • Glendale, CA 91203
Kathleen Goldstein • Phone: (818)500-8010




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