More California Homeowners Rights pass state legislation

I recently reported on bills AB278 & SB900, which focused on dual-track foreclosure restrictions. The state legislature is continuing to stay busy with additional "California Homeowner Bill of Rights." The new laws are:

SB1474: Grants CA Attorney General the ability to convene statewide grand juries to investigate and indict perpetrators of financial crimes involving victims in several counties.

AB1950: Extends the statute of limitations for mortgage-related crimes from one to three years.

AB2314: Gives local governments and receivers various tools to fight neighborhood blight caused by foreclosed homes.

Tiny homes on the market in Echo Park

We've been seeing a trend in these tiny, tiny homes being listed in the Echo Park area. While some of potential homebuyers in the need for lots of space might be turned off, there's also a lot of charm and great potential in the classic designs that are largely part of Echo Park's past.

1633 Landa Street, Echo Park

1633 Landa St

This 1929 cottage is only 484 square feet, but sits on a sizable 5,334 square foot lot. You can see city lights as well as hills and treetops, and the original Douglas Fir floors gives it that rustic charm. At $375,000 it's also an affordable price for Echo Park, especially since it has some modern upgrades. Contact me if you're interested in setting up a showing.

2232 Lake Shore, Echo Park

2232-lakshore

Lake Shore Avenue is a great street to own a property in Echo Park - we've actually had quite a few sold listings throughout the years. This one is a 1923, one-bedroom, 432 square foot cottage sitting up above the street. Because it's nice and high up, you've got city views and Elysian Park treetops for your views. The listing also boasts french windows, mahogany doors, antique details, and a private deck. The asking price is also affordable for Echo Park homeowners, they are asking $299,000. Contact me if you're interested in setting up a showing.

1942 Bungalow, Echo Park

1940s-bungalow

This 1942 Bungalow in Echo Park was actually listed as a rental on Craigslist in August. The stainless steel appliances, washer/dryer unit, storage, sliding glass doors, deck, fountains, and garden were the attractive elements that made this house sound just perfect for any Echo Park renter. But at 540 square feet, the $2,491 per month rental price tag felt a bit steep.

Urban Hillsides / Northeast LA Market review for July/August

The diverse communities of Northeast LA have a wide range of prices from the mid $100,000 price range to $1.5 million. This report covers the zip codes of Atwater Village, Echo Park, Eagle Rock, Glassell Park, Highland Park, Lincoln Heights, Los Feliz, Mt. Washington, and Silver Lake. Single Family: July / August

• Properties sold: 126 / 121
• Average days on market: 74 / 68
• Median price: $503,202 / $505,298
• Average cost per square foot: $320 / $349
• Avg. selling price to listing price: 80% / 75%

Residential Income (2-4 units):  July / August

• Properties sold: 33 / 21
• Median price: $454,348 / $418,952

Condo:  July / August

• Properties sold: 10 / 18
• Median Price: $295,250 / $262,217

Source: The MLS

Lenders improve the short sale process

short-sale

On November 1, 2012, Fannie Mae and Freddie Mac’s new self-imposed short sale guidelines will go into effect, rules which will make the short sale process easier and quicker for qualified borrowers.

The guidelines are a commitment to “enhancing and streamlining the process to avoid foreclosure and stabilize communities,” said FHFA director Edward DeMarco. Additionally, DeMarco also stated that the new short sale program will provide relief for underwater borrowers who need to relocate more than 50 miles for work.

Borrowers who are more than 90 days delinquent and who have a credit score lower than 620 will no longer be required to provide documentation of hardship. Government-Sponsored Enterprises (GSEs) will also waive the right to pursue deficiency judgments. Borrowers who are not yet in default will still qualify for a short sale if they are facing certain hardships, including death of co-borrower, divorce or legal separation, illness or disability, or distant employment transfer.

Housing inventory drop poses threat to housing recovery

With all the good news coming out about the current real estate market - improving home prices, fewer foreclosures, low mortgage rates - there is one ominous threat to this year's recovery: Inventory. RE/MAX released numbers for July and August 2012 that indicate the inventory levels are falling. July saw a 5.4 percent fall from June, and 26.8 percent from July 2011.

“Inventory is now becoming a serious challenge to this recovering market," said Margaret Kelly, RE/MAX CEO. "Home sales could be much greater if more inventory was available, especially in the lower price range, where most sales are now occurring.”

Home sales were up 10.3% from July 2011, while the average days a home was on market sold in July was 82 (a drop from previous months).

In Echo Park, 25 properties are listed currently at a median price of $569,440, a 21% increase in prices year over year. In comparison, Highland Park has about the same number of homes on the market, but a much lower median price at $440,276.

A strengthening market: Home prices rose 4.8%

According to Freddie Mac's newly released U.S. Economic and Housing Market Outlook, home prices for the country rose 4.8% in the second quarter of this year. This and other numbers indicate a strengthening market, especially as 34 states (the largest number in years) posted gains in home prices from June 2011 to June 2012.

There are many who are convinced that there’s a huge number of shadow inventory that will threaten these HPI (Home Price Index) gains. CoreLogic says shadow inventory has fallen by 28% since January 2012, but others say there are still millions of underwater homes and foreclosures that were backlogged when the foreclosure investigations started.

But Freddie Mac isn’t concerned: “While the shadow inventory persists, there is an important difference in today’s market compared with those of recent years, and that’s the substantially reduced amount of excess vacant housing,” said Frank Nothaft, VP and chief economist for Freddie Mac.

Additionally, foreclosure filings have decreased 10% over the past year, and just in July had declined 3% from June.

August Economic Outlook

Bankruptcy Auction in Ladera Heights

8-22-12 Court Date

6 bed / 4.5 bath & 4436 sq.ft.

[thethe-image-slider name="Corning"]

Spacious family home with pool and great floor plan. Property has excellent curb appeal and is located in the desirable Ladera Heights neighborhood. 6 bedrooms with 4-1/2 bathrooms, formal dining room, family room, living room, very large upstairs media room and office. Three bedrooms downstairs including master suite and three bedrooms upstairs. Gated entry to property and attached two car garage with direct access. Large covered outdoor deck off formal dining room. This is a true entertainer's house. Call for detailed court information.

• Pool
• Formal dinning room
• Gated entry
• Two story
• North of Slauson
• Very large family room
• Six bedroom plus den
• Hardwood

Property details:

• MLS: 12-594839
• Sq Ft: 4436
• Yr Built: 1954
• Bdrms: 6
• Baths: 4.5
• Pool: Yes - Private
• Parking: 2 Car Garage
• Asking: $750,000
• Address: 5519 Corning Ave., Ladera Heights, CA 90056

Contact us with questions or for more information.