Malibu, CA

The temporary property anti-flipping rule waiver has been extended through the end of 2012, by the Federal Housing Administration (FHA). The FHA rules prohibited insuring a mortgage on a home that the seller owned for less than ninety days. However, in 2010, the FHA waived this regulation and has extended it through the end of this year.

Buyers will be able to continue to use FHA-insured financing to purchase bank-owned properties and HUD-owned with this extension. This waiver will help stabilize prices a revitalize communities with high foreclosure activity.

According to the FHA’s Acting Commissioner, the waiver has strict guidelines and conditions which are implemented in order to prevent “predatory property flipping” in which properties are sold quickly at inflated prices.

Additionally, all transactions must be arms-length, where there is no link between the selling and buying parties. And when the sales price of the property is twenty percent or more than what the seller bought it for, the waiver will only apply if the lender meets specific conditions and justifies the increase in value.

The property flipping waiver does not apply to the Home Equity Conversion Mortgage program.

Research done by the agency found that in today’s market, it often takes less than ninety days to acquire, rehabilitate and resell foreclosed properties. As a result, FHA says prohibiting the use of its mortgage insurance for a subsequent resale within 90 days would adversely impact the willingness of sellers to consider offers from potential FHA buyers, mostly because they would be required to cover holding costs and the risk of vandalism that comes with allowing a property to sit vacant over a ninety day period of time.

You've heard it before. Someone you know bought a house without a home inspection and got a big surprise. Over 40 percent of the previously owned homes on the market have at least one serious defect.

Don't take over someone's problem. Most "used" homes need some type of attention. Be sure you are aware of any major problems in a house you are considering purchasing, and what it will take to correct or repair the situation.
 
Here are some of the more serious defects to watch out for:

1.Insect infestation -- termites, ants, etc.

2.Chimney settling or separation

3.Foundation cracks

4.Major house settlement

5.Cracked heater exchange

6.Failing air-conditioning

7.Hazards including lead paint, radon, water contamination, asbestos, and underground storage tanks

8.Moisture in the basement

9. Defective roofing and/or flashings

10. Mixed plumbing (example: copper mixed with steel)

11. Electrical system with undersized capacity

12. Aluminum wiring

Although most of these problems can be repaired, depending on the specific problem, the cost can be substantial. The cost could become a factor in whether you ultimately buy the house. If you enter negotiations to buy a particular house, your agent should advise you to provide a provision in your contract for renegotiating or backing out of the contract if a home inspector finds major problems.

Be careful before you involve your mortgage lender when in negotiations. Often, they will insist on certain repairs being done prior to you closing, no matter what. Anything that is an imminent health or safety issue is almost always required to be done prior to closing. Generally, mortgage lenders will not allow a seller credit back to the buyer for repairs. Here are a few ways to negotiate repair problems. Sometimes a combination is the best way to go.

1.Have the seller complete the suggested repairs prior to close.

2.Lower the purchase price by the cost of the repairs needed.

3.Have the seller pay for your "non-recurring" closing costs at the close. These includes points, origination fees, title fees, appraisal and more. They cannot include things that recur, such as homeowner's insurance, mortgage interest and property taxes. Again, the credit is the cost of the repairs or non-recurring costs, whichever is less.

4.If the repairs cannot be completed before the close of the purchase, ask the mortgage lender to consider a seller "withhold". That is money held in escrow equal to 1.5 times the cost of the repairs. This money is released when the repairs are completed, with the balance going back to the seller.

A home inspection usually costs between $250 and $400. Hire a qualified inspector. Your Realtor or lender should be the first people you ask for a referral. You can try to get referrals from people you know who have had a satisfactory experience with a home inspector. Look for affiliations with organizations like the American Society of Home Inspectors or the American Association of Home Inspectors. When you make an appointment with a home inspector, you should accompany them during the inspection.

The Malibu Association of REALTORS hosted an evening at Duke's Malibu last month to install its 2012 Board of Directors and acknowledge the accomplishments of members over the past year. 2011 President Dan Ross was awarded "Realtor of the Year" for his dedication and accomplishments over the past year, then passed the gavel to incoming President Bobby Lehmkuhl.

Lehmkuhl currently serves on the Board of Directors of the California Association of REALTORS and the Combined L.A. Westside Multiple Listing Service. In his acceptance speech, Lehmkuhl thanked his mentors, friends and supporters. He credited his drive and ambition to having spent his formative years as part of the Malibu community. Lehmkuhl's first job in real estate was with Realtor, mentor and friend Chris Cortazzo, who was awarded the "Community Service Award" for his generosity to so many compassionate causes.

Also installed were Officers: President-Elect Matt Ogden, Vice President Mark Gruskin, TreasurerSandro Dazzan, Secretary Jennifer Chrisman, Past President Ross and Directors: Jan Thompson,Bill Bowling, Meril May, Derinda Moses, Teresa Hames, Brian Merrick, Brant Didden, Damon Skelton and the newest member to join the board Rick Wallace.

"Affiliate of the Year" was awarded to Barbara Praino and Malibu Escrow for decades of dedicated service to the Realtor community and profession. A special "Community Star" commendation was awarded to Malibu Patch editor Jonathan Friedman for his exceptional work creating one of the most successful of the AOL Patch websites in the nation, and for serving and caring deeply about the Malibu community.

Realtor Lenny Goldsmith was master of ceremonies and also sang a few numbers with the band headed by lead singer and Realtor Carol Casey. Event Chair Derinda Moses hosted the event.

Our nearly 800 Realtor members comprise the largest professional association in Malibu, but they are also very proud residents who give generously of their time and support, to many very important local causes, including advocating for private property rights. It's wonderful to gather once each year to celebrate the Realtor accomplishments of the past year. We encourage businesses and professionals from the community to sponsor a class or seminar for the Realtors and to join our organization.

The best reading on pending homes sales since a federal home buying tax credit expired appeared to encourage traders on Wall Street. In November, the number of Americans who signed contracts to buy homes rose to the highest level in a year and a half. 

With the index of sales, a reading of 100 is considered to be healthy. The Realtors group said Thursday that its index of sales agreements jumped 7.3 percent last month to a reading of 100.1. The last time the index was that high was in April 2010, one month before the tax credit expired. 



There's generally a one- to two-month lag between a signed contract and a completed deal. 

Contract signings usually indicate where the housing market is headed. Homes are the most affordable they've been in decades. Prices in most metro areas have tumbled since late 2006 and long term mortgage rates are at historic lows.