Tag Archives: Real Estate

What is SB 458 And How Does It Affect Me?

Earlier this year, the state legislature passed a bill, SB 458, that states that a lender cannot “require” the seller/debtor to make any contribution towards a second mortgage in order to do a short sale.  The reason behind this legislation was to protect the consumer from the lender.  Unfortunately, one of the possible ramifications of this legislation is that many of the second mortgage holders may not settle for what the first mortgage holder is providing from the proceeds of the sale and the second mortgage holder may stop the short sale from happening.

What is the short sell homeowner to do if they are faced with this problem?  Nothing says that the seller cannot “volunteer” a contribution to satisfy the second mortgate holder so that they can get the deal done.  For example, if the first mortgage holder says that the second mortgage holder will only receive $5,000, and the second mortgage holder responding to a short sale offer with a requirement that they receive $X more.  They don’t say where this money is to come from because they cannot require the seller to pay it.

In fact, this money may come from anyone, including the seller.

Just keep in mind that what ever is done, it must be fully disclosed to all parties and must be reflected on the HUD statement.

For more great information on legal issues, check out Steve Beede’s blog at sjbeede@bpelaw.com 

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

How Long Do I Have To Wait To Buy A Home After Short Sale, Foreclosure or Bankruptcy?

Almost every agent has been asked the question:  How Long Do I Have To Wait To Buy A Home After Short Sale, Foreclosure or Bankruptcy?

The answer is…”It Depends”.

That’s because it varies with the type of loan you are trying to obtain, the factors leading up to the short sale, foreclosure or bankruptcy, and what has happened since the big event.  And, if that is not complicated enough as it is, the rules change all the time as lenders review and update their criteria, so talk with your favorite lender or one of my favorite lenders noted below.

Currently, you can expect the following time tables for obtaining an FHA loan:

Chapter 7 Bankruptcy 

  • At least 2 years from discharge date.

Foreclosure. 

  • At least 3 years from completion date.

Short Sale 

  • There are no time restrictions if the borrower was current at the time of the short sale and all mortgage  and installment payments were made within month due for the previous 12 month period prior to application date, and the proceeds from the short sale serve as payment in full.
  • 3 years from completion date if in default at time of short sale. Keep this in mind if your lender is telling you to stop paying so that you may qualify to get a loan modification.  You probably won’t get the loan modification after all the hassle and now you will have to wait 3 years to qualify to buy a house.

I always suggest that you should talk with your lender at least a year or so before you are thinking about buying so that you have time to work on re-establishing your credit as well as working on improving your credit score so that you will qualify for the loan.  Additionally, you should start saving for the down payment and closing costs.  Plan on saving up about $5,000 plus a minimum of 3.5% of the purchase price of the home you want to buy.  That should be enough to get you into an FHA loan.

If you don’t already have a preferred lender, I suggest that you talk to at least two lenders to get a feel for which one you are comfortable working with.  Here are three suggestions to consider:

Frank Monaco at Guaranteed Rate Affinity. 916-478-9586 Frank.Monaco@Grarate.com
Laura Churchill at Guaranteed Rate.  916-549-6776  laura.churchill@@Grarate.com
Steve Germoles at Comstock Mortgage.  916-977-1232  sgermoles@comstockmortgage.com
Chris Opfer at EstaRMortgage.  916-709-3257 Chris.Opfer@EstaRM.info

Here are some things that you should know and consider:

1.  In bankruptcy, the timelines start from “discharge” date NOT filing date.  Short Sale and Foreclosure timelines start from the completion date.

2.  Buyers should start the process of re-establishing credit and make sure their credit lines after the bankruptcy are current and any credit lines do not exceed 50% of the available credit being used.  You may want to talk with  Blue Water Credit for help with re-establishing your credit.

3.  Buyers should also consider practicing being homebuyers.  Work with your REALTOR and your lender and estimate what your monthly expenses will be with the purchase of a home.  Next, place the difference between your current rent payment and the anticipated monthly cost of your home payment, taxes and insurance into a saving account.  Do this  for the year that you are already saving up for your down payment.  If you pass this test, then you are truly ready to buy your next home.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!

Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to share this article with your friends on Facebook by clicking on the word “Share” at the top of the article.

More Info On Carbon Monoxide Detectors

CARBON MONOXIDE DETECTORS

Prepared by:  The California Association of Realtors

Q 1.  What is carbon monoxide?

A  Carbon monoxide is a gas produced whenever any fuel, such as gas, oil, kerosene, wood, or charcoal, is burned.  A person cannot see or smell carbon monoxide.  However, at high levels carbon monoxide can kill a person in minutes.

In addition, there are well-documented chronic health effects of acute carbon monoxide poisoning from exposure to carbon monoxide, such as lethargy, headaches, concentration problems, amnesia, psychosis, Parkinson’s disease, memory impairment, and personality alterations.

(Cal. Health & Safety Code § 13261.)

Q 2.  Is there a new California law dealing with the issue of carbon monoxide poisoning?

A  Yes.  The Carbon Monoxide Poisoning Prevention Act of 2010 (Cal. Health & Safety Code §§ 13260 et seq.) was signed into law this year.  It requires carbon monoxide detectors to be installed in every “dwelling unit intended for human occupancy.”   The California legislature also modified both the TDS (for residential one-to-four unit real property) and MHTDS (for manufactured homes and mobilehomes) to include a reference to carbon monoxide detector devices.  See below for more details.

Q 3.  What is a carbon monoxide detector?

A  It is a relatively inexpensive device similar to a smoke detector that signals detection of carbon monoxide in the air.  Under the law, a carbon monoxide device is “designed to detect carbon monoxide and produce a distinct audible alarm.”  It can be battery powered, a plug-in device with battery backup, or a device installed as recommended by Standard 720 of the National Fire Protection Association that is either wired into the alternating current power line of the dwelling unit with a secondary battery backup or connected to a system via a panel.

If the carbon monoxide device is combined with a smoke detector, it must emit an alarm or voice warning in a manner that clearly differentiates between a carbon monoxide alarm warning and a smoke detector warning.
The carbon monoxide device must have been tested and certified pursuant to the requirements of the American National standards Institute (ANSI) and Underwriters Laboratories Inc. (UL) as set forth in either ANSI/UL 2034 or ANSI/UL 2075, or successor standards, by a nationally recognized testing laboratory listed in the directory of approved testing laboratories established by the Building Materials Listing Program of the Fire Engineering Division of the Office of the State Fire Marshal of the Department of Forestry and Fire Protection.

(Cal. Health & Safety Code § 13262.)

Q 4.  How does a homeowner comply with this law?

A  Every owner of a “dwelling unit intended for human occupancy” must install an approved carbon monoxide device in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage.

The applicable time periods are as follows:

(1) For all existing single-family dwelling units on or before July 1, 2011.

(2) For all other existing dwelling units on or before Jan. 1, 2013.

(Cal. Health & Safety Code § 17926(a).)

Q 5.  How many devices and where do I place them in the home?

A  This new law requires the owner “to install the devices in a manner consistent with building standards applicable to new construction for the relevant type of occupancy or with the manufacturer’s instructions, if it is technically feasible to do so” (Cal. Health & Safety Code § 17926(b)).

The following language comes packaged with carbon monoxide (CO) detectors:

For minimum security, a CO Alarm should be centrally located outside of each separate sleeping area in the immediate vicinity of the bedrooms.  The Alarm should be located at least 6 inches (152mm) from all exterior walls and at least 3 feet (0.9 meters) from supply or return vents.

Building standards applicable to new construction are as follows (overview summary only):

• Section R315 et seq. of the 2010 edition California Residential Code (CRC) [effective Jan. 1, 2011] (applicable to new one-to-two family dwellings and townhouses not more than 3 stories and also where work requiring a permit for alterations, repairs or additions exceeding one thousand dollars in existing dwellings units):

Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

• Section 420 et seq of the 2010 edition California Building Code (CBC) [effective Jan. 1, 2011] (applicable to other new dwelling units and also where a permit is required for alterations, repairs or additions exceeding $1,000 in existing dwelling units):

Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

Q 6.  Are there any penalties for noncompliance with this law regarding installation of carbon monoxide detector devices?

A  Yes. A violation is an infraction punishable by a maximum fine of $200 for each offense. However, a property owner must receive a 30-day notice to correct first.  If an owner who receives such a notice fails to correct the problem within the 30-day period, then the owner may be assessed the fine. (Cal. Health & Safety Code § 17926(c).)

Q 7.  Can a buyer of a “dwelling unit intended for human occupancy” rescind the sale if the dwelling doesn’t have the necessary carbon monoxide detectors?

A  No.  However, the buyer may be entitled to an award of actual damages not to exceed $100 plus court costs and attorney’s fees.  (Cal. Health & Safety Code § 17926(d).)

Note the following language in the TDS and MHTDS:

Installation of a listed appliance, device, or amenity is not a precondition of sale or transfer of the dwelling. The carbon monoxide device, garage door opener, or child-resistant pool barrier may not be in compliance with the safety standards relating to, respectively, carbon monoxide device standards of Chapter 8 (commencing with Section 13260) of Part 2 of Division 12 of, automatic reversing device standards of Chapter 12.5 (commencing with Section 19890) of Part 3 of Division 13 of, or the pool safety standards of Article 2.5 (commencing with Section 115920) of Chapter 5 of Part 10 of Division 104 of, the Health and Safety Code. Window security bars may not have quick-release mechanisms in compliance with the 1995 edition of the California Building Standards Code.

Q 8.  Does a seller have any special carbon monoxide disclosure obligations?

A  No.  The only disclosure obligations are satisfied when providing a buyer with the TDS or the MHTDS.  If the seller is exempt from giving a TDS, the law doesn’t require any specific disclosures regarding carbon monoxide detector devices.  (See Cal. Civ. Code §§ 1102.6, 1102.6d.)

The Homeowners’ Guide to Environmental Hazards also will include information regarding carbon monoxide.

Q 9.  May local municipalities require more stringent standards for carbon monoxide detectors?

A  Yes (Cal. Health & Safety Code § 17926(e)).

Q 10.  Do landlords have any special obligations regarding carbon monoxide detectors?

A  Yes.  All landlords of dwelling units must install carbon monoxide detectors as indicated in Question 4.  The law gives a landlord authority to enter the dwelling unit for the purpose of installing, repairing, testing, and maintaining carbon monoxide devices “pursuant to the authority and requirements of Section 1954 of the Civil Code [entry by landlord].”

The carbon monoxide device must be operable at the time that a tenant takes possession.  However, the tenant has the responsibility of notifying the owner or owner’s agent if the tenant becomes aware of an inoperable or deficient carbon monoxide device.  The landlord is not in violation of the law for a deficient or inoperable carbon monoxide device if he or she has not received notice of the problem from the tenant.

(Cal. Health & Safety Code § 17926.1.)

Q 11.  If the California Building Standards Commission adopts or updates building standards relating to carbon monoxide devices in the future, is the owner required to install the newer device?

A  It depends.  Yes, when the owner makes an application for a permit for alterations, repairs, or additions to that dwelling unit with the cost exceeding $1,000.  (Cal. Health & Safety Code § 17926.2(b).)

Q 12.  Where can I obtain additional information?

A This legal article is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.’s legal products and services, please visit car.org.

Readers who require specific advice should consult an attorney. C.A.R. members requiring legal assistance may contact C.A.R.’s Member Legal Hotline at (213) 739-8282, Monday through Friday, 9 a.m. to 6 p.m, and Saturday, 10 a.m. to 2 p.m. C.A.R. members who are broker-owners, office managers or Designated REALTORS may contact the Member Legal Hotline at (213) 739-8350 to receive expedited service. Members may also fax or e-mail inquiries to the Member Legal Hotline at (213) 480-7724 or legal_hotline@car.org.  Written correspondence should be addressed to:

California  Association of REALTORS®
Member Legal Services
525 South Virgil Ave.
Los Angeles, CA  90020

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

Coldwell Banker Helps Sellers

Coldwell Banker has been helping Buyers and Sellers for years to have smooth transactions.  Now we’ve added a huge benefit to Sellers listing with Coldwell Banker Agents.

Coldwell Banker realizes that there are times when Sellers have needs that are outside the scope of real estate agents’ expertise.  Sometimes a little legal help is needed, especially when you have so many people facing short sales and needing assistance with reading the confusing term letters from their lenders.  That’s why Coldwell Banker is now offering one hour of complimentary, professional legal advice with regard to any contract or escrow issues.  (Any fees in excess of one-hour are the sole responsibility of the seller).

We have partnered with an outside legal firm to provide this assistance.  This is one of the many ways that Coldwell Banker helps their agents stand out!

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

Realty Check — Hey, Case-Shiller, It's Not The End Of The Real Estate World!

SkyNotFalling
So many of us giggled nervously as we thankfully avoided the end of the world a couple of weeks ago. But judging by the continued “end of the world” type coverage the Case-Schiller housing study got this week, maybe we are nearing the end.

Yes. I am joking, but I am amazed at the attention this report gets. It covers 20 markets, yes only 20, and that is just one of its many flaws. Yet many consider it “the be-all-and-end-all” economic indicator that defines our entire national housing picture. As we know, all real estate is local, and it is unfortunate that the reporting on a 20-city “national” index can have such a jarring impact on otherwise rational people.

Look at some of the headlines the other day:

“Home prices at lowest point since 2006 bust”

“Home values continue downward churn”

“No relief in sight’ for falling home prices”

And even in paradise – Maui- the front page headline in the paper screamed “Crash Spreads.” And Maui isn’t one of the 20 markets. In fact the nearest market covered is San Diego, a mere 2500 miles away!

Shawn Daly, an agent with Coldwell Banker Residential Brokerage in Evanston, Illinois, had to calm down two skittish buyers this week.

One, who is currently working in Iraq, had initially placed on offer of $450,000 on a lakefront Chicago condo. The sellers countered with a price of $525,000. But after seeing Case-Schiller inspired headlines on the web, Shawn’s client emailed him to ask that he lower his offering price by $50,000. Shawn explained that the sellers did not agree with his first offer so if he went lower he wouldn’t get the home. The buyer calmed down and agreed.

Shawn correctly pointed that the Case-Schiller Home Price Indices are meaningless to individual buyers who are looking at specific houses, on specific streets, in specific neighborhoods.

Then yesterday, Shawn met another client for a tour of potential homes. They hardly said hello without telling Shawn they were more nervous than ever after seeing the report on the news.

You have a right to be nervous, but I can’t say this enough. Now is the smartest time in my 36 years in real estate to buy a home if you have the lifestyle reason, financial stability and viability to do so.

And it’s all about “Triple I…P”. Inventory, Interest rates, Incentives and Pricing. Start with inventory, because most communities have seen a rise in the amount of homes on the market, you have more choices. Interest rates for mortgages remain at near-historic lows and have actually trended down over the last 7 weeks, with Freddie Mac reporting 30-year fixed rates now averaging 4.55%. Incentives are the tax advantages to home ownership. And of course, there are prices. Prices are down from mid-decade highs, but in many, many markets are showing stability, slight declines or even increases. Home affordability remains near record levels and the price-to-value proposition in most markets is extremely compelling.

If you are interested in buying a home, you owe it to yourself to contact a real estate agent in the community you are interested in. Look at homes, do a rent vs. buy analysis, explore what is available in your price range.

Don’t just take my word for it. Do your homework.

You might just be surprised that the end of the world isn’t here yet … at least until next month’s report.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.