Below is an excerpt recent from an email I recently received from the California Association of Realtors:

No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide. 

While this situation is changing daily, I want to tell you what we currently know to answer any questions you may have.

• In late September and early October some lenders and servicers began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes.
   
• So far, only Bank of America has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order.  Foreclosures in the other 23 states are processed through the court system.
   
• Non-judicial foreclosures in California, however, do have legal requirements that lenders must follow.  For example, California law requires that lenders for certain mortgage loans made between Jan. 1, 2003, and Dec. 31, 2007, attempt to make contact with borrowers to discuss options for avoiding foreclosure at least 30 days before filing a notice of default.  Lenders also must sign a declaration in the notice of default stating that they tried to contact the borrower, made contact with the borrower, or fall within an exception (such as a bankruptcy filing).
   
• The lenders and servicers that have placed their foreclosure moratorium on properties in the 23 states where courts are involved in the foreclosure process include:  Goldman Sachs Group Inc’s Litton Loan Servicing, Ally Financial Inc.’s GMAC Mortgage unit, JPMorgan Chase, and PNC Financial.
   
• These lenders/servicers have only temporarily halted their foreclosures while they review their foreclosure process.  This is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.
   
• This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government.
   
• Some members have begun to report the immediate impact of this moratorium on transactions that involve foreclosed properties.  Delays in escrow and the removal of listed foreclosures are temporary results of this moratorium.
   
• The immediate impact on the market will be the slowing of home sales, which could put upward pressure on home prices in the short term.  The long-term effect on the market is uncertain at this point as it depends how long the moratorium remains in place.
   
• Assuming the moratorium is lifted in the next month, the flow of REOs to the market should resume, but the uncertainty created by the moratorium may cause hesitation on the part of buyers.
   
• Federal agencies, including the Office of the Comptroller of the Currency, the Federal Housing Administration, and the conservator of Fannie Mae and Freddie Mac, have asked lenders and servicers to review their foreclosure processes.  This review would apply to all states including those like California where the vast majority of foreclosures are non-judicial.
   
• The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete.
• Please contact me or visit joelwolk.com for additional information about foreclosures, short sales or standard sales in Westlake Village, Thousand Oaks, Agoura, Calabasas, Simi Valley, Moorpark, Newbury Park, Camarillo and surrounding areas in western Los Angeles county or eastern Ventura County.

A Residential property is broadly defined to include all dwellings. The amount a landlord may charge for a security deposit is highly regulated.  Residential landlords are limited to a maximum security deposit equal to two month’s rent for unfurnished units and three month’s for furnished units (Cal. Civ. Code § 1950.5(c)).  These limits cannot be waived by the tenant.  While the landlord may describe some of the security deposit as “last month’s rent,” “cleaning deposit” or “pet fee,” the landlord may not collect or demand any additional amounts for these categories.  (Cal. Civ. Code § 1950.5(c).)  

However, a landlord is permitted to increase the deposit by one-half of one month’s rent when a landlord is accepting a tenant with a waterbed.  In that situation, the landlord is also permitted to charge a reasonable fee for administrative costs.  (Cal. Civ. Code § 1940.5(g).)  

In addition to the security deposit, a landlord may collect the first month’s rent in advance.  Other than the first month’s rent, advance rent payment may be required only if the amount pre-paid is six months or more rent.  (Cal. Civ. Code § 1950.5(c).)  

Furthermore, landlords may also charge a nonrefundable application screening fee.  This permissible fee was limited to $30 (in 1996) but may be increased annually commensurate with an increase in the Consumer Price Index after January 1, 1998. The application screening fee may not exceed the “actual out-of-pocket costs of gathering information concerning the applicant.” (Cal. Civ. Code § 1950.6(a).)  

For example, for an unfurnished residential property at $1000 per month, the maximum amount that the landlord can collect up front is $3,000 or $1000 rent for the first month, plus $2,000 as a security deposit.  

To reiterate, a landlord cannot try to collect more than the allowable security deposit by labeling the funds for something else, such as a move-in fee, pet fee, cleaning fee, or last month’s rent. Therefore, if the landlord wants to label part of the deposit as, for example, a pet deposit the lease could be written $1500 Security Deposit and $500 Pet Deposit totaling 2 months rent, but under no circumstances can the “pet deposit” be added onto the $2000 which would more than 2 months rent (3 months for furnished). 

There are, however, five exceptions to the rules limiting the amount of a security deposit: 

1.  Application screening fees for actual, out-of-pocket costs for obtaining information about a rental application, such as credit reports and reference checks. However, the screening fee cannot exceed $30 per applicant, plus annual CPI-adjustments after January 1, 1998.

2. Advance payments of not less than six months of rent for residential leases with a term of six months or more.

3. Separate fee agreements between the landlord and tenant for structural, decorative, furnishing, or other similar alterations, but not for cleaning or repairs.

4. For waterbeds, an additional one-half of one month’s rent as a security deposit, plus a reasonable administrative fee.

For additional information on rentals in the Conejo Valley including Thousand Oaks, Westlake Village, Calabasas, Agoura, Oak Park,  or Simi Valley, Moorpark and Camarillo, please contact me.

Southern California Equestrian Directory

One of the reasons I relocated to Southern California is for the wonderful equestrian opportunities available. As a teen, I exercised horses and guided riding groups and have owned horses over the last 40 years.  The wonderful weather combined with a large amount of beautiful open space allows for wonderful riding opportunities in Conejo Valley, Simi Valley and surrounding areas.

There are developments that feature central equestrian centers, as well as those that allow horses on your own property. Lot sizes vary from around half an acre, to ranches with 40 acres or more! Some communities have bridle paths running throughout the community. There are also boarding stables for those that may not want to live in an equestrian community, but would like easy access to their equine friends.

A recent MLS search revealed over 300 properties available from under $300,000 to almost $50 million, so you can be sure I can help you find just the right property for you and your horses. Some of the cities served are Agoura/Agoura Hills, Bell Canyon, Calabasas, Camarillo, Hidden Hills, Malibu, Moorpark, Newbury Park, Simi Valley, Somis and Thousand Oaks.

Please contact me for a current list of properties that would meet your criteria.

You may want to visit the Southern California Equestrian Directory for more information: www.socalequine.com

Not long ago you could buy a home, keep it a while then sell for a nice profit and do it all over again.

Well as everyone knows, things have changed. Buyers are more discriminating and some houses never sell. Some sellers don’t properly prepare their the home for how buyers view them. Some price their homes too high. Some sellers sell too hard during showings. Some sellers just don’t thoroughly analyze why they are selling and fail to define their objectives.

The reasons behind your decision to sell affect everything from setting a price to deciding how much time and money to invest in getting your home ready for sale. Is it more important to get the highest price or sell quickly, or both? Different answers will dictate different strategies, but regardless of your reasons, a prudent seller won’t reveal reasons at the negotiating table. Simply responding that your housing needs have changed, can be the best way to respond.

Deciding on the market price requires research. A Realtor can be a great help as Realtors have easy access to current listings which will compete with yours, homes under contract, sold properties and expired listings (those that didn’t sell). Buyers will generally only pay what they can buy as similar home for, so it’s important to review the above classifications and interpret where your property fits in. Again, a professional Realtor can be a tremendous help as they make these comparisons on a daily basis and have all the resources at their disposal.  Once you’ve set the price, you’ve told the buyers the maximum they’ll need to pay, but remember that over pricing is just as dangerous as underpricing…sometimes even more so. Rember, buyers will be looking at many homes, and if yours doesn’t compare favorably, neither buyers nor agents will take you seriously. Your home may sit on the market for an extended period of time and then new buyers will think there must be something wrong with the property.

Just as large companies invest millions in product and packaging designs, a smart seller knows how to “package” their home. Make sure the home is thoroughly clean. Pick up, de-clutter, scrub and dust. Loud paint colors should be made neutral. Remove excess furniture that makes rooms look smaller. Clear countertops and remove all magnets from the refrigerator.  If possible replace soiled or damaged carpets. Fix leaky faucets or toilets. Consult professionals to remove pet or smoke odors. Plant some colorful flowers and make sure the grass is green to capitalize on curb appeal. The decision to buy is very much emotional. Buyers want to fall in love with a home and see themselves in it, so allow the buyers room to imagine themselves living in the home and remove any items that may prevent them from doing so.

Try and know your buyer. Attempt to find out their motivation, how quickly they need to move, are they pre-approved for a mortgage? Knowing the answers may help you decide whether lowering the price or a quicker closing is more likely to seal the deal. It will help you determine how far you can push the buyers without chasing them away.

Always make sure to disclose everything. Once a buyer knows about a problem, it makes it much more difficult to come to come back with a lawsuit later on. Make sure the contract is complete and  all terms, costs and responsibilites are spelled out. Allowing a buyer to move in prior to closing is not normally recommended.

Moving out before selling can cost thousands as vacant homes look less appealing. You’are also telling buyers that you have a new home and are probably highly motivated to sell quickly; giving them an advantage at the negotiating table.

Whether you’re interest in buying or selling real estate in Westlake Village, Thousand Oaks, Calabasas, Agoura or Simi Valley and whether you are looking for a short sale, foreclosure, or non-distress sale, please feel free to contact me with any questions.

Although short sale is a term used often in today’s real estate market, not all home buyers and sellers are familiar with what’s involved.

Short sales occur when a homeowner has some financial hardship and owes more on the mortgage than the home is worth. The seller enters into a contract with a buyer and the contract is contingent on the bank’s approval. The bank is asked to accept less than what is owed on the mortgage. Hence the name short sale or short pay.

Although all banks are different, most won’t look at a file unless the homeowner is behind on payment from 1 to 3 months. A comprehensive file must be submitted which would normally include a hardship letter from the seller, social security numbers, loan numbers and complete financial records including recent bank statements, w-2′s, tax returns and payroll stubs. If sellers are using a real estate agent, there must also be a letter of authoriztion permitting the bank to communicate with the agent. The bank will also want a premlinary HUD statement showing all closing costs and the net to the bank. There are companies that assist with short sales that will collect fees only if a short sale is completed.

Along with above information, banks will require a comparative market analysis showing recent sales of comparable homes in an effort to establish the true market value of the property. They will often solicit BPO’s (Broker’s Price Opinions) or actual appraisals. Once the value is established, they will submit the information to the investors who will look at the market value and mortgage amount and determine how much they are willing to accept.

The process can take several months as the banks are so back-logged. It can also be frustrating for all parties as the bank “negotiators” are often difficult to reach and usually prefer to communicate via email. Too much contact irritates the negotiators and too little allows too much time to pass, so an experienced agent is essential in following up with just the right amount of contact and knowing when to push and when to back off.

It is important that the property be priced correctly. Too high and no offers will be received. Too low and the bank will likely reject the offer. As buyers will compare the property to others on the market, curb appeal, interior appearance and effective marketing and promotion are at least as important as with non short sale properties.

Banks may make counter-offers. If an offer is accepted, most banks will expect to close within 30 days. If the bank accepts less than owed, it is possible that they will want the right to pursue the deficiency between the amount owed on the mortgage and the amount accepted in the sale. There is also the possibility of tax consequences where the government may see the difference between the money owed on the mortgage and the money paid as income. As I licensed Realtor, I am not allowed to give legal or financial advice. Please contact your attorney and account for their advice.

If you’re considering a short sale of your property, I would be happy to represent you and effectively market the property, communicate with the bank and negotiate the sale. If you’re considering a purchase, I can provide a list of short sales, foreclosures or standard homes that meet your criteria from Calabasas to Camarillo and Simi Valley to Malibu. Feel free to contact me with questions or comments.

Welcome to my new blog. On a regular basis, I will be posting information of interest to home buyers and sellers in Westlake Village and the surrounding areas.

Westlake Village is located in Ventura County in the Conejo Valley, which is also home to Thousand Oaks, Newbury Park, Oak Park and Agoura Hills.

We are surrounded by Calabasas to the east, Malibu to the south, Simi Valley and Moorpark to the north and Camarillo and Oxnard to the West.

This is a beautiful area with thousands of acres of open space and greenbelts, quality housing, good schools, less traffic, low crime and wonderful shopping and cultural events and beautiful weather!

I’m happy to serve buyers and sellers in any of the areas listed above. Buyers, please contact me for an up to date  list of homes that match your criteria, including short sales and foreclosures.  Sellers, contact me for a confidential market analysis of your home’s value and to find out why I would be your best choice to represent you in the sale of your home.

Please stop by and visit my blog often, as you will find lots of useful information that could save you thousand of dollars when buying or selling a home.

In the meantime, feel free to ask any questions you may have.

Joel