I recently received this email from the California Association of Realtors:

“C.A.R. has agreed upon amendments to remove its opposition to SB 407, a bill that would require that ALL residential and commercial properties be retrofitted at point-of-sale with low-flow toilets, shower heads and faucets.  While C.A.R. appreciates the goal of conserving water, C.A.R. opposed SB 407 because its point-of-sale approach will not achieve the objective of significantly reducing water consumption, and because it will burden escrows and could further destabilize the already weak housing market. C.A.R. has reached a tentative agreement with the author and sponsors to remove all point-of-sale provisions from the bill, require all properties to be retrofitted by 2017, and to add a disclosure to the TDS  modeled after the disclosure that now applies to garage door openers. C.A.R. will not remove its opposition until the agreed upon amendments are in print. SB 407 was approved by the Assembly Judiciary Committee on June 30 and is pending in the  Assembly Housing and Community Development Committee.”

Most Los Angeles real estate agents receive weekly email updates from the California Association of Realtors, such as:



“Qualifying for a jumbo loan—those with loan amounts higher than the conventional conforming loan limit of $729,750 in high-cost areas—is more difficult than it was a few years ago.
 
While rates on jumbo mortgage historically have been higher than rates on conforming loans, jumbo loans still are available, but often come with stringent underwriting requirements.  Prior to the credit freeze, borrowers of jumbo mortgages could qualify for loans with a 5 percent down payment, credit scores of 620 and enough money in the bank to cover two months of payments.  Now, borrowers typically must have six months’ reserves, a 700 credit score, and a down payment of at least 20 percent.”

My advice: For those home buyers who can’t meet these requirements, there may be the FHA alternative.

I love technology!  If you have been curious about whether or not  George and/or I decided on the whirlwind trip, the answer is we went.  I have both laptop and cellular phone.  As of Sunday evening, I am on a boat in the Mediterranean and it is amazing. 

I will be keeping up my Los Angeles Real Estate blog from my laptop. Here’s my real estate update: 

Cordova:  Showings, talking, no new offers. Ads are in place.

Orange Grove: I spent all of Friday phoning the lender.  The new reality of this real estate market is that many lenders do not return phone calls; this particular lender will not return calls to escrow.  I am fortunate that I sometimes catch her answering the phone.  We continue to wait for the file to come out of underwriting.  Natalie will call again and again until the loan is approved.

Short Sale:  The clock is ticking and the buyer will lose his interest rate commitment next week.  Escrow and the lender can’t proceed because the short sale approval needs tweaking:  The first lien holder has approved that the 2nd lien holder receives a $3,000 payoff; the second lien holder has approved a $10,000 pay off.  The first will not allow the 2nd to be paid more than the $3,000 – we are stuck.  The listing agent, (the seller’s agent) is not returning my phone calls.  I have a phone with me (Natalie has my secret number, if you need it, she may give it to you) and will phone the agent from the Med.

If I am playing the waiting game, I can't think of a better place to play it from. We will be departing Olbia for Cosica this afternoon.  

After over two months we finally received “approval” of the short sale.  Of course the price the bank wants is more than we offered. And in addition, the second trust deed holder wants more money than the first trust deed holder agreed to. Will it sort it?  We’ll have to see.

The Spanish Colonial Revival on Cordova fell out of escrow, the buyer simply changed their mind.  Unfortunately, it sometimes happens when the home sells quickly  in multiple offers.  I have a copy of the inspection report, which appears to be as clean as they get.

My Orange Grove listing:   Still waiting on loan approval; sometimes a home buyer will make a second loan application (double ap) when the first lender is slow.  Fortunately this buyer did submit a second application to Wells Fargo.  According to Wells, the loan is in underwriting and we should have approval by the end of the week.

I have a last minute opportunity to take a quick trip to Europe departing on Saturday.  Will I go?  Will George go without me? So much to think about, I have family in town, will I leave them?  I have to get Cordova back in escrow, will I leave Natalie with this task?  No wonder I woke up at 4:00 in the morning!

I still can’t get a free lunch from the title company but shortly after yesterday's post it appears that I can once again receive foreclosure and loan information.  I had a client contact me last weekend about an abandoned home in their neighborhood and wasn’t even able to verify that it had in fact foreclosed. 

Yesterday afternoon, I was notified that the new rules loosened up a bit, and  I could once again receive this information from the title company. 

Title Insurance companies used to provide Realtors with an abundance of information.  When I had a client interested in a home which had been on the market for more than several weeks, I would frequently contact a title company and find out how many loans were on the property and their original balance.  Often, that could provide an indication as to how flexible the seller could be.

Title Representatives are provided a commission on each title insurance order.  Although, a loan officer or escrow officer can take me to lunch, a title rep no longer is able to pay for a business lunch.  Although, a loan officer or escrow officer can take me to a sporting event, a title officer can not. Realtors renew their license every four years.  At the time of renewal we provide evidence of the required courses which we have passed.  Title companies can sponsor these educational courses but may no longer provide refreshments, not even a cup of coffee.



Although, home protection policies are typically paid for the by the seller, the insurance coverage benefits the buyer as it covers the working components of the home. There are about a half dozen established home protection companies in the Los Angeles area.  I know of two, which in the event of an E + O (error's and omissions insurance) claim will pay my $5,000 deductible if they are the policy holder.  How do they get away with that? Isn’t that more of an inducement to sway my business than a free lunch? 

Newly listed in the MLS is this Glendale, R.M. Schindler  4 + 4 residence. The Rodriguez House encompasses nearly 2400 square on 1/3 acre with pool.  Asking price is $2,475,000. The MLS marketing remarks read:

“In 1941, R.M. Schindler was hired to build a home for writer/composer Jose Rodriguez and his growing family on a spectacular double lot in Verdugo Woodlands. He envisioned a home in which the gardens would sweep up, around and through the house, ingeniously accomplished by a floating bedroom wing built to span the sun and shade gardens. The home served as a glittering backdrop for cocktail parties for Rodriguez family and friends Igor Stravinsky, Salvador Dali, and Ansel Adams. This masterpiece, one of the best preserved examples of Schindler's work, has been meticulously preserved & sensitively upgraded with the finest materials. The home's eight ceiling heights, clerestory windows, complex geometries, and two modernist fireplaces make it as eminently livable now as it was in 1941. The Rodriguez House is a Glendale City Landmark, as well as having a Mills Act status, with annual property taxes of approximately $3,500.? In 1941, R.M. Schindler was hired to build a home for writer/composer Jose Rodriguez and his growing family on a spectacular double lot in Verdugo Woodlands. He envisioned a home in which the gardens would sweep up, around and through the house, ingeniously accomplished by a floating bedroom wing built to span the sun and shade gardens. The home served as a glittering backdrop for cocktail parties for Rodriguez family and friends Igor Stravinsky, Salvador Dali, and Ansel Adams. This masterpiece, one of the best preserved examples of Schindler's work, has been meticulously preserved & sensitively upgraded with the finest materials. The home's eight ceiling heights, clerestory windows, complex geometries, and two modernist fireplaces make it as eminently livable now as it was in 1941. The Rodriguez House is a Glendale City Landmark, as well as having a Mills Act status, with annual property taxes of approximately $3,500.”

Glendale’s other architectural gem, Lautner’s Schaffer residence remains on the market (listed since 2/089) at $1,573,000. 

My routine is coffee in the morning, lots of coffee.  I typically wake without an alarm between 5:30 – 7:00 AM. I respond to emails, check the MLS for new listings both for my buyer clients and as competition for my listings.  After I blog, I walk the dogs at Hahamongna Park .

I used to spend 20 or more minutes with the Los Angeles Times.   Now, I mostly only look at it on the weekend.  I think since all of the layoffs, the paper has gone downhill. 

After the walk, there is more coffee, more emails and it is typically late enough to start with phone calls. You wouldn’t want me phoning you @ 7:30 in the morning would you?

Now for my real estate update:

The Good
My Pasadena Orange Grove condo:
It has been in escrow for over a month.  The very well qualified buyer has made a second loan application, as his first lender is slower than molasses.  Inspection contingency issues were resolved.

My Glendale Listing on Cordova:
Charis, the interior decorator/home stager went all out on this one.  She worked with the owner on a variety of details, knobs, colors, tiles, light fixtures, furniture placement, flower and plant selection and more a lot more. It sold within the first week with multiple offers and over asking price.

My La Crescenta listing on El Caminito:
Showings and Interest have picked up after a $100,000 price reduction.

My Burbank buyer:
Inspection issues long since resolved, we are closing next week

The Bad
My Pasadena condo buyer – the short sale:
Yes, we were offer #2, but we have been waiting since May for the second trust deed’s approval (to accept a $3,000 payoff on a $120,000). This is a fool’s game

The Ugly
Nothing ugly, although the short sale may be moving in this direction.