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Torrance, CA

NEW FEDERAL LAW AFFECTING DISTRESSED PROPERTIES

Mary Thomas PV,RB,MB,Torrance,Pas, Arc,SM REALTOR®*: Real Estate Agent in Rancho Palos Verdes, CA

New law the Helping Families Save Their Homes Act of 2009 to help homeowners and lenders avoid foreclosure, as per a article I recieved from the California Association of Realtors the New Laws were not really helping since only one family qualifed for this program.

Now with an inducement to the short pay lender to share a portion of the equity,the government thinks this may work...All so the Government is offering monetary incducement to participating servicers of the existing loans and originators of the FHA refinance.

New Law also allows with a 90day notice the month to month has to vacate in 90 days but if a lease holder has a 90 day extension they can stay until the end of their lease term.

There is also $500 million to be granted to federal agencies to chase down the fraud perpetrators, which will provide more goverment jobs potentially.

With all this money being thrown into the package, let's see how this will help California Distressed Homeowners..

Here is the article I received from Calif. Association of Realtors:

The Helping Families Save Their Homes Act of 2009 contains various new laws to address the national foreclosure crisis. Major provisions that may affect California REALTORS® and your clients include the following:

  • HOPE FOR HOMEOWNERS (H4H) REVAMPED: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans. Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program's first seven months, it only helped one family stay in its home. The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value. If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner's equity. Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance. Millionaire borrowers (with net worth over $1 million) are now excluded from the program. HUD will establish the requirements and standards to implement the H4H program as revised.

  • LONGER STAY FOR TENANTS OF FORECLOSED HOMES: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.

  • NOTIFICATION OF TRANSFER OF MORTGAGE LOANS: The Truth in Lending Act now requires a lender to whom a mortgage loan is sold or otherwise transferred to notify the borrower in writing of such transfer within 30 days. The notice must include the new lender's identity, address, telephone number, authorized representative's contact information, and other relevant information. This measure should help alleviate the problem borrowers often face in determining who owns their mortgage loans.

Other provisions of the Helping Families Save Their Homes Act include a 4-year extension of the $250,000 FDIC deposit insurance to December 31, 2013, protection for loan servicers who establish qualified loss mitigation plans from liability for an alleged breach of duty to maximize mortgage values for their investors, $130 million for foreclosure prevention counseling and education, and $2.2 billion to strengthen homeless programs.

President Obama has also signed into law the Fraud Enforcement and Recovery Act (FERA) which authorizes the Department of Justice to prosecute mortgage fraud crimes against private mortgage brokers and companies that previously were not regulated by the federal government. FERA also earmarks almost $500 million for federal enforcement agencies to investigate and prosecute mortgage fraud and other fraud crimes

Do you think this will work?

What is your opinion? foreclosure?

Torrance CA Real Estate Market Update - April 2009

Krystyna Baty, REALTOR®, M.S. Torrance Redondo Beach & Greater South Bay CA: Real Estate Agent in Torrance, CA

The Torrance average sales price decreased 24 percent in April 2009 compared to April 2008, bringing the average price to $458,037. The number of sales increased to 91 closed sales a 20% increase in volume! Meanwhile, the average market time increased from 76 days a year ago to 91 days last month..

Torrance Sold
Listings
Average
Sales Price
Average
DOM
April 2009 91 $458,037 71
April 2008 76 $601,600 65

*All stats are compiled from the Multi Regional Multiple Listing Service. Information is deemed reliable but not guaranteed.

Increased sales in Torrance reflect a stabilization of the South Bay real estate market as home buyers respond to increased affordability and more moderate prices. Average home price in Torrance continued to slide till January and rose in February and March as follows: November 2008 - $790,493, December 2008 - $478,307, January 2009 - $451,563, February 2009 - $477,944, March 2009 - $519,707, April '09 - $458,037.
If you want to learn more about South Bay and Los Angeles County real estate, please contact me at 310-918-5027 To begin searching for Los Angeles county homes, please use our Los Angeles County MLS search

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Foreclosure Market- I found the best buys in this Market

Mary Thomas PV,RB,MB,Torrance,Pas, Arc,SM REALTOR®*: Real Estate Agent in Rancho Palos Verdes, CA

Banks are still store housing more foreclosures because they do not want to flood the market and lower the prices in one big drop.The lending institutions are trying to control the real estate market drop.

We are still seeing a slow response to our short sale offers with banks taking as long as 3 months to respond, if you are looking for the best buys in the market in the South Bay especially Palos Verdes Market and last month my Lomita market. Here is what it is- It is Probate and Trust Sales.

Not only are the homes in excellent condition, they have usually had a long history of maintaince and the heirs most likely need the cash or they would not be selling at this time but leasing instead, so you can get a fantastic price.

I have found my clients some excellent buys in trust sales and relocation properties compared to the foreclosures that are usually stripped down and in poor condition.

The best part is we know the history on the house and I have negotiated some wonderful bonuses for my buyers including a new roof allowance on a roof that was not leaking but tired. My clients on the probates are still getting the lowest prices in the neighborhood and some kind of insight into the past history of the home where as the foreclosures and short sales have no desire to share information due to the negative state of mind they are in having to lose their home.

Our next waive of foreclosures is suppose to hit the market next year when the adjustable rate mortgages come due which will lower our prices but as for my buyers they are getting the lower prices and great properties for the same prices of the foreclosure properties without dealing with an "as is" foreclosure that was left by a distraught Seller.

I don't see the foreclosure properties selling for less than the trust sales to make it worth my clients while to take on a lesser condition home that is in need of major repairs...The foreclosures are not the bargains in the South Bay market. Don't be fooled by the News Media.

Torrance Developement Halted on Palos Verdes Border-Economic Whiplash

Mary Thomas PV,RB,MB,Torrance,Pas, Arc,SM REALTOR®*: Real Estate Agent in Rancho Palos Verdes, CA

Interesting Daily Breeze article I ran across. Locally, I guess we have our own issues to worry about from the economy.

I heard yesterday on Glenn Beck, Fox Nation that some developers are bull dozing their projects in California and saying that the Land is worth more than the completed projects. According to this Wall Street Journal article, it looks like we have another whole set of problems to deal with from lack of bank financing.

According to the Daily Breeze article some residents near the closed Sunrise Project not only had the soil tested to find Silica, normal to rock quarries but a potential carcinogenic. Some residents reported chronic sinus infections and more.

Here is a clip from the article. You can read the whole article written by Charles Bennett / Daily Breeze picked up by the Wall Street Journal at the link at the end of the quote.

"After a cash-starved developer halted construction last November of an assisted-living center here, it left a hole in the hillside that neighbors say is loosing possibly contaminated dust on their homes. Local authorities say they haven't detected any pollution. But nearby residents, citing their own tests and some health problems, are calling for an independent investigation. Several trooped recently to City Hall, demanding action.

It's another facet of the real-estate bust: Across the country, local authorities are facing a rise in complaints about environmental and safety hazards from construction sites where work has been frozen.

No one tracks precisely how many construction projects nationally have been stopped by developers midstream. But an indication of the scale comes from New York-based Real Capital Analytics Inc., which estimates that there were 3,929 distressed commercial properties across the U.S. as of March 31 -- a 55% jump since Dec. 31, 2008. Roughly a quarter of the properties involve developments, unfinished, Real Capital said.

.the site is less than 200 feet from a landfill that they already worried was leaking contaminants into the soil and water. The state in March found that groundwater below the Palos Verdes Landfill, closed in 1980, was contaminated, but said it posed no public-health threat as the water was being treated and the site monitored. Some residents are challenging that finding.

The city of Torrance approved the $8.5 million Sunrise project in 2005, and last summer bulldozers began tearing open the side of a hill. Construction halted in January, and now the site sits deserted and uncovered. Neighbors in the Country Hills subdivision say wind blows dust from the site into their homes.

Besides the problems with dust itself, neighbors worry the soil carries contaminants from the nearby landfill, even though the state review found that substances from the landfill hadn't escaped into the air.

In addition, Joan Davidson, a high-school teacher who leads a community group seeking greater safeguards from the landfill, has had soil from the site tested and found it contained high levels of crystalline silica -- 40% of the sample was silica."

Torrance

Picture courtesy of the Daily Breeze

Click the whole article here to find out more:

http://online.wsj.com/article/SB124165649273494241.htm

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April 16th Brokers Open in Torrance

04-15-09
Hady Chahine
Hady Chahine: Real Estate Agent in Manhattan Beach, CA

5117 Beran Street in Torrance is a brand new listing just hitting the South Bay MLS. April 16th from 12pm-2pm we’ll be hosting a brokers open to showcase the house. 5117 Beran Street, Torrance, CALocated in the Southwood section of Torrance this well maintained home's highlights include recently upgraded bathrooms, double paned windows throughout, gleaming hardwood floors, canned lighting, forced air heating, copper plumbing and an upgraded electrical panel. To get more details or to schedule a private showing go to 5117 Beran St., Torrance.