By Lisa Ficarra

If you listen to all the media hype about how bad the real estate  market is crashing and burning,  you might want to just bury your head in the sand or run for the hills, grab an ax and  build a cabin and say goodbye to civilization.

Let’s put things in perspective.  Yes, there has been a forclosure crisis. Yes there was a meltdown. Yes banks are much tighter in their lending because of all the shady mortgage lending that was going on before the meltown.

The good news is this. That is exactly why it is the time of the buyer, and, even for  you to sell your home if you want to upgrade to a bigger one because….. even if you are selling your home below what the market was before, the good news is, you are also,  in turn, buying an upgraded property below what it should be. So all is equal in market ups and downs.

 The home buying process now is what is called   “The Perfect Storm”  .   In real estate that means when both the interest rates AND the home prices are at their lowest TOGETHER!    This has not happened since the great depression and we most likely will not see it again in our life time.   Red flag there home buyers!!!  Alert alert!  The writing is all over the front and the back of the  wall.

 The reality is we are right now, at our perfect storm.  Those of you who are still waiting for it to bottom out even more probably won’t see that happen.  The finance rates have inched up slowly over the past couple months but are still incredibly at an all time low. 

 In addition , the 3% down on a home is going to be non-existent  at some point and 10% down will most likely  be the minimum required .  Also…. buy now before Fannie Mae and Freddie Mac decide to go away, a very real possibility.

 A fact worth noting when your watching your local news.  Usually, the media is behind when it comes to  the most current information about the real estate market.   Not  only that, but,  they also report on a national level and do not know or specify about local areas.   For example, Los Angeles is still in a very healthy market all considered, and has nothing to do with the market in say a smaller midwest or rural town, or, in another major city like Atlanta or Seattle.  Real Estate markets vary from state to state and  city to city.

Don’t buy into the fear.  The bottom line is buy now!

February 15, 2011
LOS ANGELES (Feb. 15) – California home sales rose in January, marking three consecutive monthly increases and posting their highest level since May 2010, while the statewide median price declined to its lowest level since June 2009, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

“With lower home prices and rates edging up from their historic lows of late last year, prospective home buyers should consider the opportunities in today’s market,” said C.A.R. President Beth L. Peerce.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 546,420 in January, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide, representing 90 percent of the market.  January’s sales were up 5.1 percent from December’s revised pace of 520,080 and up 2.5 percent from the 532,870 sales pace recorded in January 2010.  It was the first year-over-year sales increase since May 2010.  The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the January pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home sold in California was $278,900, down 8.6 percent from a revised $305,020 in December and was down 2.0 percent from the $284,600 median price recorded for January 2010.  The January 2011 median price was the lowest since June 2009, when it was $274,640.

“Although prices typically fall seasonally in January and February of each year, the decline in the median price can primarily be attributed to the aftereffects of last fall’s foreclosure moratoria,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “More distressed properties are coming on to the market, which led to an uptick in sales of distressed properties during January.  We expect this trend to continue as lenders expedite the disposition of these properties,” she said.

Here are other highlights of C.A.R.’s resale housing report for January 2011:

• The Unsold Inventory Index for existing, single-family detached homes was 6.7 months in January, up from 5.0 months in December 2010.  The index was 5.7 months in January 2010.  The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
• Thirty-year fixed-mortgage interest rates averaged 4.76 percent during January 2011, compared with 5.03 percent in January 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.25 percent in January 2011, compared with 4.33 percent in January 2010.
• The median number of days it took to sell a single-family home was 61.8 days in January 2011, compared with 32.9 days for the same period a year ago.
• View Unsold Inventory by price point.

Note:  The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS® and MLSs throughout the state, representing 90 percent of the market.  County sales data are not adjusted to account for seasonal factors that can influence home sales.  MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrows.  Movements in sales prices should not be interpreted as changes in the cost of a standard home.  Median prices can be influenced by changes in cost and in the characteristics and size of homes sold.  Due to low sales volume in some areas, median price changes may exhibit unusual fluctuation.  C.A.R.’s data has been standardized to reflect county-level statistics.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
# # #
January 2010 County Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted

January 2010 County Unsold Inventory and Time on Market*
Regional and Condo Sales Data Not Seasonally Adjusted

NOTE:  In California there are 500,000 licensed Real Estate agents , only 165,00 of them are Realtors!

The Differences Between REALTORS & Real Estate Agents

By Elizabeth Weintraub, About.com Guide

REALTORS® must subscribe to the Code of Ethics and non-member agents do not.

People use the terms REALTOR® and real estate agent interchangeably, but that is incorrect. There are differences between REALTORS® and real estate agents. They are not the same. Although both are licensed to sell real estate, the basic difference between a real estate agent and a REALTOR® is a REALTOR® is a member of the National Association of REALTORS®. As such, the main difference that you hear a lot about — but are likely confused about — is that a REALTOR® must subscribe to the REALTOR® Code of Ethics. But what does this mean to a consumer?

The Code of Ethics is strictly enforced. It contains 17 Articles and various underlying Standards of Practice. It’s not just a bunch of rules that agents swear to uphold and adhere to. The Standards are much more restrictive and confining as to conduct than those governing agents who simply hold a real estate license. While there is no evidence nor guarantee that all REALTORS® are morally and ethically better than unaffiliated real estate agents, it is an attempt by the industry to regulate and, as such, deserves recognition.

Here are 17 things that a REALTOR® promises to do that non-affiliates do not:

#1) Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly.

#2) Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.

#3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.

#4) Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.

#5) Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.

#6) Shall not collect any commissions without the seller’s knowledge nor accept fees from a third-party without the seller’s express consent.

#7) Shall refuse fees from more than one party without all parties’ informed consent.

#8) Shall not co-mingle client funds with their own.

#9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.

#10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.

#11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.

#12) Must engage in truth in advertising.

#13) Shall not practice law unless they are a lawyer.

#14) Shall cooperate if charges are brought against them and present all evidence requested.

#15) Agree not to bad mouth competition and agree not to file unfounded ethics complaints.

#16) Shall not solicit another REALTOR’S client nor interfere in a contractual relationship.

#17) Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.

California home sales, median price rise in December
California home sales rose in December, posting their highest level since May, according to data from C.A.R.  The statewide median price increased from November, but was down from a year ago.

“December’s sales increase reflects buyers taking advantage of rock bottom interest rates and improved affordability since the first half of the year, when prices were higher,” said C.A.R. President Beth L. Peerce.  “Most of December’s sales opened escrow in October and November.  Rates hit their absolute lowest in October but began edging higher in November, prompting buyers to get off the fence,” she said.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,680 in December.  December’s sales were up 5.9 percent from November’s revised pace of 491,590 but were down 6.8 percent from the revised 558,840 sales pace recorded in December 2009.

Following three consecutive monthly declines, the median price of an existing, single-family detached home sold in California increased 1.7 percent from a revised $296,690 in November but was down 1.6 percent from the revised $306,860 median price recorded for the same period a year ago.

Rainbow Bridge

Just this side of heaven is a place called Rainbow Bridge.

When an animal dies that has been especially close to someone here, that pet goes to Rainbow Bridge.
There are meadows and hills for all of our special friends so they can run and play together.
There is plenty of food, water and sunshine, and our friends are warm and comfortable.

All the animals who had been ill and old are restored to health and vigor; those who were hurt or maimed are made whole and strong again, just as we remember them in our dreams of days and times gone by.
The animals are happy and content, except for one small thing; they each miss someone very special to them, who had to be left behind.
They all run and play together, but the day comes when one suddenly stops and looks into the distance. His bright eyes are intent; His eager body quivers. Suddenly he begins to run from the group, flying over the green grass, his legs carrying him faster and faster.

You have been spotted, and when you and your special friend finally meet, you cling together in joyous reunion, never to be parted again. The happy kisses rain upon your face; your hands again caress the beloved head, and you look once more into the trusting eyes of your pet, so long gone from your life but never absent from your heart.

Then you cross Rainbow Bridge together….

Author unknown…

Brought to you by C.A.R and CA insurance commissioner

California insurance commissioner urges earthquake preparedness
California Insurance Commissioner Dave Jones this week urged Californians to update their earthquake preparedness plans and evaluate the need for earthquake insurance.

“On this 17th anniversary of the Northridge earthquake, let us be reminded that we live in a region of the country that is constantly in flux,” said Commissioner Dave Jones. “While it was certainly a tragic event that impacted many Californians, we must be even more prepared for the next big earthquake that scientists say may come at any time.”

Earthquake preparedness includes the following:
• Review your insurance policies at least once each year with your agent or broker to ensure that they provide adequate coverage.
• Consider purchasing an earthquake policy if your home is in an earthquake-prone area, doesn’t meet current building standards, or is built upon unstable ground.
• Take measures to retrofit your home to increase your safety during an earthquake.
• Brace your water heater to minimize the risks of fire and water damage caused by water heaters that topple during earthquakes.
• Bolt your home’s wood frame to its foundation to prevent damage resulting from the structure sliding off its foundation. And for houses on raised foundations, brace of “cripple walls” to reduce damage from earthquakes.
• Mobile home owners should use earthquake-bracing systems to reduce the chance of damage from homes slipping off support jacks.
• Fasten cupboard doors with child-proof latches to prevent them from opening and spilling their contents.
• Fasten bookcases, mirrors, televisions, and other tall or heavy objects to wall studs.
• Gas appliances should have flexible attachments, and family members should be familiar with gas shut-off techniques.

Most homeowners’ and renters’ policies do not cover damage from earthquakes. The California Earthquake Authority was formed to provide earthquake insurance to residential property owners including homeowners, individual condominium unit owners, mobile homeowners, and renters. Under the CEA plan, the CEA member insurance company is required to offer earthquake coverage subject to the minimum dwelling and personal property. Dwellings must be covered according to CEA policy guidelines; however, other structures such as outbuildings, swimming pools, and masonry fences are specifically excluded, as is the case with the majority of earthquake policies. CEA has more recently offered broader coverage in response to growing claim reserves and positive reports of plan solvency.

Earthquake coverage can not be purchased directly from CEA. CEA does not offer stand-alone earthquake policies. Only licensed California insurers who are CEA-member companies can sell CEA policies.  A residential property policy must be in force or homeowners must purchase a new residential property policy from a CEA member insurer in order to be offered a CEA policy. The residential insurance companies participating in CEA currently underwrite more than 70 percent of the residential property insurance sold in California. A participating CEA company can only offer CEA policies.

Get important information about preparing for a disaster from the California Department of Insurance website at www.insurance.ca.gov. Or, call its consumer hotline at (800) 927-HELP.

Foreclosures down in Arizona, California, Nevada in 2010
Foreclosure starts and sales declined in Arizona, California, and Nevada in 2010 due in large part to a reduction in foreclosure sales amid last fall’s robo-signing scandal.

The decline in foreclosure starts in the three western states was the first annual decline since the foreclosure crisis began, according to ForeclosureRadar.  Foreclosure cancellations rose in the first half of 2010 as homeowners saw more short sales and loan modifications approved.  Investors quickly flipped foreclosure purchases for profits as buyers hurried to take advantage of tax credits.  But as the tax credits expired, the market began to slow.

Foreclosure cancellations also began to drop as the government push for loan modifications faded and short sales slowed with the rest of the housing market.  In the third quarter, foreclosure sales dramatically declined after the robo-signing scandal broke, leading Bank of America to completely halt foreclosure sales for nearly two months.

Who says Californians can’t make fun of themselves!!

Today’s blog is dedicated to my fellow Californians, and, especially to those of us  who  live in this wonderful, vibrant and exciting city we call  the “City of Angels”

You know your a Californian when…….

1. You say “like” and “for sure” and “right on” and “dude” and “totally” and “peace out” and “chill” and “tight” and “bro” and “hell of” and “hella” (Nor Cal only) and “faded” and “stoked” and “fo sho” and you say them often.
2 . You don’t get snow days off because there’s only snow in Mammoth, Tahoe, Shasta, and Big Bear.

3. In school earthquake drills happen more than fire drills

4. You can wear sandals all year long.

5. You know who the roller skating, guitar playing with a turbin on his head guy is down at Venice Beach.
6 . You go to the Beach – not “down to the shore.”

7. You can fix your Starbucks Mocha Latte while driving on the 405 freeway during rush hour
8 . You know 65 mph really means 100.

9. When it rains it usually floods since we really don’t have storm drains.

10. Our governor at any given time can be a movie star.
11 . You judge people based on what area code they live in, North or south of Sunset, The Hills or the Flats, west side or east side, or North or South side of Ventura Blvd.

12. You might get looked at funny by locals when you’re on vacation in their state, but when they find out you’re from California suddenly you turn into a Greek GOD.

13. Your vacation time is saved for plastic surgery
14 . We don’t stop at stop signs… we do a “california roll”
15 . You can get fresh and REAL Mexican food 24 hours a day.
16 . All the TV shows you watch are in “other” states which get filmed here.
17 . We’re the Golden State. Not the Cheese State. Not the Garden State…..GOLDEN!!!
18 .We have In-N-Out Burger (Arizona and Vegas are lucky we share that with them).
19. You’re sick of playing tour guide and taking visiting out of towners to Disneyland, Universal Studios Groehman’s Chinese Theater, Malibu beach etc, etc etc…..!
20 . We call it soda, not pop.
21 . Oh, and no one from California calls it Cali… that’s how we know you’re not from around here.
22 . The fastest part of your commute is down your driveway.
23 . Your sense of direction=Toward the ocean and away from the ocean.
24 . You eat an In-N-Out burger at least once a week!!!
25 . The primary bugs that you worry about are electronic.

26. Your time figured by your driving commute is not by miles but  in minutes it takes to get someplace.
27 .  Your monthly house payments exceed your annual income.
28 . You can’t find your other earring because your son/brother is wearing it.
29 . Your family tree contains “significant others.”
30. You see 25 lawyers chasing an ambulance.
31. More than clothes come out of the closets.
32 . More money is spent on face lifts than on diapers.
33 . Smoking in most places is not optional.
34 .You pack shorts and a T-shirt for skiing in the snow, and a sweater and a wetsuit for the beach.
35 . When you can’t schedule a meeting because you must “do lunch.”
36 . Your children learn to walk in Birkenstocks.
37 .You’ll reluctantly miss yoga class to wait for the hot tub repairman.
38 . It’s barely sprinkling rain and there’s a report on every news station: “STORM WATCH”
39 . You actually get these jokes and pass them on to other friends from California.
40 . Your coworker has 8 body piercings and none are visible.
41 . You make over $300,000 a year and still can’t afford a house.
42 . You have a very strong opinion about where your coffee beans are grown and can taste the difference between Sumatran and Ethiopian.
43 . You need a part time job to pay for the pruning of those beautiful palm trees on your property.

44. A really great parking space can totally move you to tears.
45 . A low speed police pursuit will interrupt ANY TV broadcast.
46 . Unlike back home, the guy at 8:30 am at Starbucks wearing the baseball cap and sunglasses who looks like George Clooney IS George Clooney.
47 . Gas costs $1.00 per gallon more than anywhere else in the U.S.
48 . Both you AND your dog AND your cat have therapists.
49 . You pass an elementary school playground and the children are all busy with their cell phones or I pods.

50. When asked if you miss having 4 changing seasons you say “We do have four seasons – Brush Fire season, Mud slide season , Santa Ana Winds season and all around earthquake season.

51. We call them sprinkles (not Jimmies) Submarine sandwiches (not Hoagies), and “Going to The Market” (not food shopping)

52. Being a vegetarian is not like telling someone your an alien.

53 When it comes to driving around Los Angeles, you know at least 4 or 5 different ways to get from point A to point B!

54. Pedestrian’s really DO have the right of way!

55. You don’t ask for autographs when you run into celebrities around town.

56. You remember the date , time and magnitude of the 1994 Northridge earthquake and, that in fact, this blog post is on the anniversary day 17 years ago.

57. It’s barely sprinkling rain and there’s a report on every news station: “STORM WATCH” and…..

58. If an inch of rain or more is predicted people are raiding the markets for bread and milk.

59. You know where “The Brady Bunch” house is.

60 Avocado’s are a staple in your house.

61. Not only do you eat at El Pollo Loco, you know what it means.

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HOMEOWNERS looking to lower their monthly mortgage payments and also save some on interest may be able to do so without all the hefty fees and daunting credit requirements of refinancing.

A little-known strategy, called “recasting,” or “re-amortization,” is available through some mortgage lenders and servicers.

It involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms. The lump sum reduces the principal, so your new monthly payments decrease slightly and you save on interest paid over the life of the loan.

Lenders typically charge an administrative fee of $150 or more for this service, though borrowers are not required to pay closing costs or submit to another credit check, because they are not asking for a new loan.

Recasting works well for those unable to qualify for refinancing amid the ever-toughening credit guidelines — perhaps because they are self-employed or have less-than-stellar credit — as well as for those with extra cash, like a year-end bonus.

“People don’t really know about it,” said Alan Rosenbaum, the founder and chief executive of the Guardhill Financial Corporation in New York, “but it’s become more common recently.”

Although the term “recasting” is often used by the mortgage industry to refer to interest-rate resets on adjustable-rate mortgages, here the interest rate and loan term stay the same.

Here’s how it might work. Let’s say that as of late December, you had just over $230,449 of principal left on a 30-year fixed-rate loan for $300,000 taken out at 7.93 percent in 1995. You have been paying just under $2,187 a month in principal and interest. But if you put in $20,000 toward that remaining principal and asked your lender to reamortize your payments over the remaining 15 years on the loan, your monthly payment would drop by $184, to around $2,002. Putting in $100,000 would save $945 a month and bring payments to $1,241.

Making extra payments toward the principal while not asking the bank to recast a loan keeps monthly payments the same and merely shortens the time it takes to pay off the loan.

There are a few caveats to recasting, however. The first is that you may need to have a large sum on hand. JPMorgan Chase, for example, charges a $150 fee and requires a minimum $5,000 payment toward the principal.

Another issue is having a lender, or loan servicer, that offers the service. And even those that do may impose restrictions. JPMorgan Chase and Bank of America exclude loans backed by the Federal Housing Administration and the Department of Veterans Affairs, and loans that were sold off and securitized may also need investor approval.

While few if any lenders advertise recasting, “they are trying to become more customer-service-oriented, and they will do it on a case-by-case basis,” Mr. Rosenbaum said. Homeowners should contact their lender’s customer service department.

Lenders, which would probably rather earn thousands of dollars in closing fees from refinancing your loan, are not obliged to recast mortgages. And certain types of mortgages, for example interest-only and adjustable-rate loans, usually aren’t eligible. The borrower will also need to have been current with all mortgage payments to qualify.

Edward Ades, the owner of Universal Mortgage in Brooklyn, says recasting can be especially useful to recent buyers, for whom it makes little financial sense to refinance but who expect to receive a tax refund or other substantial money after closing on their property, like proceeds from a relative’s sale of property, stocks or other assets.

If your interest rate is 5 percent or lower, Mr. Ades added, it may not make sense to recast a loan, because the extra cash could be put into an investment with a higher return. “At the end of the day,” he said, “I always tell people they have to do whatever makes them sleep better.”

This article has been revised to reflect the following correction: