This Month In Real Estate: September

How to Restore Your Credit Score Quickly

Buying a home is the American dream and you have decided that it is time to start looking into buying a home of your own. That's great! However, you probably know that there are things you should be doing before you begin your search - but where do you start? The first thing you need to get in order, before you do anything else, is to get a copy of your credit reports. That's plural - credit reports.

You need to get a copy of your credit reports from all three credit reporting agencies - Trans Union, Equifax and Experian. If you are thinking about buying a house, you may not realize the importance your credit reports hold in getting an approval for your new home.

 The mortgage companies are more concerned about your recent buying and repayment history than what may have happened years ago. If you have too many recent late payments or collections, there may not be anything you can do to get approved in the immediate future.

 However, there are some things you can do to clean up your report. So in six months to a year or maybe even two years, depending on how bad your credit is and how long it takes you to clean it up, you can apply for a home mortgage and get your approval.

 Here are a few things you can do to restore your credit and credit score quickly:

 1. Check your credit reports for errors. Again , that is plural so check all three of your credit reports for errors. If there are mistakes on your credit reports, you will need to start an investigation with the company or the source of the derogatory information. Contact them in writing and make sure you include all supporting documentation proving the information is in fact an error.

 2. Set up a timely repayment schedule. If you have any accounts that you have been late in paying, you will need to begin paying all of them on time. Paying your bills on time for a minimum of six months will go a long way in improving your credit rating.

 3. Collections. Try to avoid having your accounts turned in to collections. A collection is the most damaging of all credit issues. So work out a re-payment plan before your account turns into a collection. A credit improvement agency may be able to help you get your collections erased; but only if the creditor did not abide by all of the laws of the Fair Credit Reporting Act. However, this is generally not the case because most creditors know the laws and how to follow them. So don't count on this as a quick fix . Most collection accounts will stay on your credit report for a minimum of seven years.

 4. Keep a low balance on all of your revolving credit accounts. Try to keep your balances below 50% of your limit. The lesser the balance the better it looks to potential creditors.

5. Do some soul searching. Try to determine what caused your credit status to get out of control in the first place. Then do whatever you have to to amend your bad habits - if any.

 6. Get a secured credit card. Secured credit cards can be very helpful in improving your credit. There are many things you can do to get your credit report back on track quickly. So talk to your real estate agent for more information about how you should go about doing this.

 In the meantime, your Realtor will be able to get you started on your path to home ownership while you are working out your credit issues. Your agent has the experience and the know how to help you get into your new home as quickly as possible. So take advantage of all they have to offer you.

High-End Home Sales Soar throughout California

By RE Insider

While home sales throughout much of California have remained flat throughout this spring and early summer, a new study has indicated that multimillion dollar homes are selling in record numbers, offering hope that the market is still improving and prompting many to wonder what’s holding the rest of the market back.

According to a recent study performed by San Diego-based DataQuick, $1 million-plus sales grew at a 9.1% clip statewide compared with last year, while sales overall fell 7.4%. Additionally, California in the second quarter set all-time records for the number of homes sold for more than $2 million, more than $3 million, more than $4 million and more than $5 million.

What’s driving these high-end home sales? According to market-watchers, there are several factors.

One is the hot technology sector in the Bay Area and some affluent parts of Southern California, which is minting new millionaires who can afford seven-figure homes. Another is the 11.6% price growth in California over the last year, which means a house worth $925,000 last summer may be worth $1.03 million today. And there’s the influx of international buyers, which is pushing up prices at the high end.

“It’s always fascinating to watch this part of the real estate market. It behaves differently, responds to its own set of criteria,” said DataQuick analyst Andrew LePage. “These buyers, especially those in the multi-million-dollar market, are less likely to agonize over credit scores, income and job security, down payments and mortgage interest rates.”

With this in mind, do you think this the market is improving as a whole? And considering that mortgage rates remain historically low, what do you believe is holding other buyers back?

http://re-insider.com/2014/08/18/high-end-home-sales-soar-throughout-california/

Keller Williams LA Harbor Market Share: March Update

Why Wait To Buy Your First Home Till You Are Married

In my parents generation it was easy, you dated, got engaged, got married, then bought the house. Lots of little check marks on the list and very few deviated from the norm.

In my generation it was a bit more difficult. You still did the dating part, but we typically added the living together part before the marriage or even the engagement. It was practical, and a bit controversial, but we did it.

Now our children are facing another change in the equation. Young couples are buying homes together before they get married.

Coldwell Banker has come out with a new survey that shows 24 percent of millennial couples are buying the house before they get married. Now part of this is because these couples are waiting much longer to tie to the knot, but for those in the real estate industry it is a trend to watch.

Especially as we see the housing industry start to recover. If these numbers were growing in the recent housing recession I think they will explode as the market takes off.

So remember when you want to go back into your personal history to predict future events in real estate, odds are you will be mistaken. The world is changing, fast, and the smart and successful agents are watching these trends and using them to their advantage.

Survey Trends: Love, Marriage and Homebuying

New Homes for Newlyweds: More than one in three married homeowners (35 percent) purchased their first home together by their second wedding anniversary.
Cold Feet? Not These Couples: 17 percent of all married couples surveyed purchased a home together before their wedding day.
Millennials are Less Likely to Wait Until Marriage: 24 percent of married homeowners ages 18 to 34 bought a home together before they were married, compared to 14 percent of those ages 45 and older.
Southerners Take Their Time: 72 percent of married Americans in the South waited until after they were married to purchase a home, compared to 60 percent of Americans in the Northeast.
To Have and to Hold … and to Own: Only 16 percent of married U.S. adults have not purchased a home together with their current spouse.

Impact of Homebuying on a Marriage

• 93 percent of homeowners who purchased their first home while married always planned on owning a home after marrying.
  
• 80 percent said purchasing a home with their spouse did more to strengthen their relationship as a couple and family than any other purchase they have made together.
  
• Over one-third of married homeowners (35 percent) wish they had taken the plunge (into homeownership) sooner than they actually did.

How to Find the Perfect Apartment for Rent – 10-Step Process

By Jacqueline Curtis | Money Crashers

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

Tips to Find a New Home to Rent

1. Determine Affordability

The U.S. Census Bureau suggests that your monthly rent should not exceed 20% of your monthly income – 30% at the most. For instance, if you bring home $4,000 each month, you should cap your search at around $1,200. Taking the time to update and polish your personal budget before you start looking for apartments can not only help you figure out your price range, it can also help you identify areas in your personal finances where you can cut back if you want to spend more on a pricier apartment. After scrutinizing the numbers, you may decide to drop that costly TV subscription to allow you more wiggle room in your budget for the right place.

Create your budget with a simple spreadsheet or an online service like Mint or PearBudget. Detail your income and expenses down to the penny, from fixed obligations such as phone bills, student loans, and car payments, to variable month-to-month costs such as groceries, entertainment, and clothing. You can lower your food bills by clipping coupons, and save money on your cable, smartphone, and Internet by bundling all three services under one provider. These small moves can really add up, giving you the funds you need for your future housing.

2. Lower Rental Costs

There are several things you can do to find a lower monthly rent:

• Look Outside an Urban Area. While living in the city center may seem like a priority, it doesn’t mean much if you can’t afford the rent. Instead, check out apartments in the suburbs within a conveniently commutable distance to work.
• Consider Transportation Costs. Urban areas generally require a smaller transportation budget, since you can likely take public buses or subways to get around. However, you still need to take transportation costs into consideration, whether it’s a bus pass or gas money, if you choose to live away from the city center.
• Get a Roommate. You can slash the price of any apartment in half simply by sharing it with someone. You need a landlord’s approval before doing so, but having a roommate can significantly reduce the financial pressures of renting. Just make sure you have a written agreement with your roommate laying out all obligations.
• Check for Subsidies. The U.S. Department of Housing and Urban Development (HUD) routinely offers subsidies for those with lower-income jobs who may not be able to afford rent. Search the HUD website to find affordable housing or see if you qualify for subsidies.
• Think Small. Square footage comes at a premium in an apartment, particularly in the number of rooms. Going for a studio or one-bedroom may mean missing out on some space, but you make up for it with big month-to-month savings. Assess how much space you really need based on your lifestyle, visitors, pets, and storage. You may find that you’re happier paying less for a smaller place.
• Negotiate. Unless you’re apartment hunting in a popular area with little renter turnaround, many landlords are amenable to negotiating. Check out the rates for comparable apartments with similar amenities in the area and bring your research with you to strike a better deal. You can also offer to pay rent for a longer chunk at a time (a landlord may lower the rate if you pay three or six months at a time) or choose to sign a longer lease to score a better deal overall.

3. Add Renters Insurance

For some, renters insurance is a choice, but for the vast majority, it’s required by a landlord. In either case, you should add it to your budget. It covers losses in case you suffer a break-in, and it also helps cover your landlord if you do damage to the property. A landlord insures the building, but renters insurance covers what’s actually inside it.

Luckily, it’s pretty affordable. Rates depend on geographical location, amount of coverage, and amount of rent paid, but, on average, you can expect to pay around $500 per year on $25,000 worth of coverage – about $12 to $15 per month.

4. Run a Credit Check

Many landlords run credit checks to see if there are any glaring issues with potential tenants, such as unpaid bills or bankruptcy. You can also expect a background check. Although landlords run these checks prior to approving you, it’s actually a good idea to request your own free credit reporton your own. That way, you can comb through to check for any potential roadblocks and contest any errors you may find.

All three credit reporting agencies (Equifax, TransUnion, and Experian) are required by the FTC to offer one free credit report each year. It’s no cost to you and won’t affect your score if you request it, but you do need around three weeks to actually receive the report.

5. Start Hunting

Don’t leave apartment hunting for the last minute. In a perfect world, it should start around three months before your “must move” date. Many current tenants have to let their landlords know of vacancies in advance – the majority of areas require renters to give at least 30 days’ notice, but plenty give more.

While the features you want in an apartment are specific to you and your lifestyle, there are a several basic things you need to look for:

• Price. Avoid looking at apartments outside of your budget. Landlords are unlikely to discount the rent, and you could end up either overspending or being disappointed when you can’t afford the apartment of your dreams. Instead, set a firm number and only look for places that fall within your budget.
• Transportation. If you’re currently without a car, check every potential apartment’s proximity to public transportation. An apartment may be well-priced and in a great neighborhood, but if you have to spend most of your time walking or calling taxis, it might not be so attractive. What’s more, you need to factor the cost of transportation into your budget for a realistic picture of how much an apartment really costs.
• Convenience. Choosing an apartment that is conveniently located can make your life a lot easier. Look for a place that’s close to work, shopping, transportation, and amenities such as laundry.
• Safety. Not only should an apartment be in a safe neighborhood, landlords should make an effort to ensure their tenants feel safe inside. Proper locks on each door, private entrances, and security should all make you feel better about renting.

6. Gather Your Down Payment

Many landlords require a down payment, which usually includes the first and last month’s rent, along with a security deposit equal to one month’s rent. Therefore, if you’re forking over $800 per month for a new place, you need $2,400 ready to go when you actually sign your lease. Your first and last month’s rent is obviously retained by the landlord, but your security deposit is generally returned if you leave the property in the condition you found it. Otherwise, it can be applied to maintenance, repairs, and cleaning.

While you won’t need to give a landlord a security deposit until you sign the lease, it’s always a good idea to have the amount saved up in your bank account. That way, you won’t lose out on a potentially perfect apartment to a better-prepared renter simply because you didn’t have the money.

7. Prepare Documentation

Landlords take a substantial financial risk if they don’t thoroughly check out each applicant, so in addition to credit and background checks, some may require extra documentation. Gather the following papers and keep them on file in advance of your search:

• Letter of Employment. A landlord needs to know you’re gainfully employed and able to make monthly payments based on your salary. This letter should be printed on company letterhead and include an affirmation that you work there, the duration of your employment to date, and your monthly or yearly salary. It should be signed by a supervisor.
• Pay Stubs. These corroborate the information in the letter of employment.
• Tax Returns. If you’re self-employed, tax returns from the last couple of years should suffice in place of pay stubs. You may need to offer extra explanation as to what you do for work and the amount you make annually.
• Reference Letters. A landlord wants to know that you’re a great tenant. If you’ve rented before, ask for reference letters from past landlords explaining that you paid your rent on time and cared for the property. If you’ve never rented before, ask for letters from previous employers or acquaintances who can confirm that you’re responsible and honest. Just make sure they’re from people not related to you – glowing recommendations from your mom won’t do the trick.

8. Talk to Tenants

While you want to make a good impression on the landlord, you also need the landlord to make a good impression on you. The best way to find out if you really want to live in a certain property is to talk to past and current tenants. In general, you want a landlord who is courteous and safe, and who takes care of maintenance issues promptly. Ask about tenant turnover, infrastructure issues, and response times to complaints.

This is also the ideal time to ask about living expenses in the area, especially if you’re moving to a new neighborhood. Current tenants can give you a rundown of what they spend on transportation,utilities, and entertainment, as well as information about the neighborhood, such as where to eat, the location of specific school districts, and the best local amenities.

9. Do a Walk-Through

Don’t sign that lease just yet. After everything checks out and you’re happy with the apartment, location, and landlord, you should do a final walk-through before signing on the dotted line. Because previous tenants may have caused damage or maintenance issues, you need to be sure that you won’t be responsible for any issues that weren’t your fault.

Come prepared and check for the following:

1. Turn on lights and faucets, and flush toilets throughout the apartment to make sure they all function properly.
2. Check for rodent or insect infestation, particularly in cupboards and storage spaces. Chew marks or droppings are a major red flag.
3. Bring along a cell phone charger and plug it into the outlets to make sure they all work.
4. Check smoke alarms and look for fire safety equipment, such as an extinguisher in the kitchen.
5. Open and close and lock and unlock doors and windows.
6. Turn on all included appliances to make sure they’re working.
7. Examine floors and walls for any type of damage. Carpet, hardwood, linoleum, drywall, and tiles should all be inspected.
8. Take pictures of any problem areas with a digital camera and show them to the landlord. Save the file so if there are any discrepancies with maintenance or problems getting your security deposit back when you move, you have evidence to prove you didn’t cause the damage.

10. Read Over and Sign the Lease

Lease agreements vary depending on time frame and contract terms.

• Periodic Leases Work Best for Shorter Durations. With a periodic lease, the landlord acknowledges that your situation could change from month to month, allowing you to pay and renew your lease monthly. However, these leases can be more expensive, and because you have to renew each month, the landlord reserves the right to raise the rent at any time. You need to give your landlord 30 days notice before vacating the apartment, so this arrangement is best only if you truly need short-term living space.
• A Fixed-Term Lease Is Most Common. Contract with your landlord to stay in the apartment for a specific period of time – three months, six months, a year, even two years. In many cases, if you choose to move out, you’re still responsible to pay for the time left on your lease, whether you live in the apartment or not. This can mean locking in a lower rate, though, which is ideal for longer-term living situations. Occasionally, landlords let renters out of their lease if a penalty is paid, so be sure to discuss contingencies before you sign.
• Subleases Are Three-Party Lease Agreements. They often occur when a renter needs to vacate an apartment, but is still in a lease with the landlord and responsible for the rent. With a sublease, the original renter finds another resident to take over lease payments until the term is up. The renter then pays the landlord for the duration of the contract. Subleases must be approved by the landlord, so if someone offers you a great deal on the down-low, it could be suspect.

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

Biggest Home Seller Mistakes

1. Overpriced Home

Nothing shocking here. This was far and away the most common mistake sellers make that prevent them from selling their home. 

If you overprice your home there is a pretty good chance no one is going to want to buy it. Real estate agents do not set the real estate market. A great real estate agent will suggest a price at which to list your home based on comparable homes that have already sold in the market. Overpricing a home to 'see if you can get someone to bite' is not a strategy employed by someone really serious about selling. Overpricing a home will lead to missed opportunities with buyers that are serious about buying in the range at which your home should be listed.

The first week during which a home is listed will generally be the time that the most eyeballs are on the home and the largest potential pool of buyers will be exposed to the listing. Setting a price that reflects the market is essential to selling! This is exacerbated in a downward trending market. Many a seller has lost thousands, even tens of thousands of dollars chasing a market down after setting a listing price that was outside what the market was willing to bear.

Margaret Goss, a Broker with Baird & Warner on the North Side of Chicago gives you a few reasons that an agent will take your overpriced listing and then shares the repercussions of making the decision to price your home too high.

2. Showing Availability - It's Difficult to Set a Showing

The chances your home will sell when buyers can't get in to physically inspect the property are minuscule. Sellers need to understand that listing a home for sale is going to lead to some inconveniences in your normal routine. Many serious buyers may want to physically inspect a property during times which may not be convenient for the seller. Knowing this, motivated sellers need to understand that flexibility in when you allow the home to be sold could have a direct impact on the sale of your home.

It's not uncommon for sellers to see 8, 10, even 20 homes during a showing tour with their agent. If your house isn't on that list because you only do showings on Saturday and Sunday from 10am to 4pm, you will miss out on ready, willing and able buyers. 

As a seller, realize that the more people that can see the home in person, the more chance you have to find the buyer that wants your home. Eric Kodner, a broker with Madeline Island Realty in La Pointe Wisconsin shares a real life example of an unavailable seller costing herself a sale and a lot of money.

3. Cluttered Space - Unwilling to Depersonalize or Remove Clutter

Sellers are sometimes unwilling to either make the effort, or unwilling to compromise how they live in their home during the time the home is on the market for showings. Serious sellers realize that by depersonalizing the home and removing unwarranted clutter, it allows potential buyers to more easily visualize their own things in the house.

When you live in your home day in and day out, you become comfortable with your own 'things'. In many cases, however, your 'stuff' can make a room feel smaller than it actually is and in some more extreme cases, your 'stuff' can completely distract someone from visualizing the potential of a room. We know you are proud of your kids as the shrine in the living room displays all of their ribbons, trophies and diplomas from the last 20 years. But for a buyer, this is only a distraction. 

Many agents will make recommendations about ways to remove clutter or depersonalize your home. Some will even suggest that a professional homestager be brought it to completely maximize the space and create a setting maximizes the buyers ability to visualize their own things. The key thing to remember here is these suggestions are not personal and you may have to be a little uncomfortable so that your house puts it's best foot forward.

Ralph Gorgoglione, a real estate agent with the John Aaroe Group in Los Angeles reminds us that "as a seller, the most important thing to realize is that, yes, your crapola means a lot to you. But it means nothing to anyone else." Especially a buyer trying to visualize their own stuff in your house.
 

4. Unpleasant Odors in the House

"Mr and Mrs. Seller, your house stinks!"

Most agents aren't going to be this blunt. But in some cases they wish they could be. They'll take a more tactical approach and say something like.....'during the time your house is on the market, it might be a good idea to smoke outside'.

But what they know is that nothing will stop a potential buyer in their tracks faster than a strong odor of any sort. In some cases this could just be the left over smell from last nights dinner. In more extreme cases, agents tell horror stories of entering homes that have a bad smell of pet urine or smoking. 

The main concern for the buyer is, of course, "is the house going to smell like this once we move in?" Real Estate agents confirm that many a buyer has passed on a home after coming to their own conclusion on that answer. 

Your agent isn't suggesting a fresh coat of paint and new carpet because they don't like how things look. They are making this suggestion because they realize that the smoke odor in your home is going to be a major turn off for anyone thinking about buying your home.

Real estate broker Dick Greenburg with Elevations Real Estate, LLC in Fort Collins Colorado even goes so far as to suggest "homes with bad odors don't sell because buyers are having intense and complex negative reactions that are beyond working around."

5. Seller Unwilling to Make Repairs Prior to Listing

No seller wants to spend a few thousand dollars making repairs to a house you are about to sell. Agents understand that. But they also understand that few buyers want to move in to a house that needs a bunch of work done immediately upon moving in. 

One of your objectives to selling your home is to make it as appealing as possible to as wide of an audience as possible. If the seller is unwilling to make repairs, and a buyer doesn't want a bunch of work upon moving in, you've shrunk the pool of potential buyers for your property.

Some sellers may want to offer the buyer a credit at closing for certain repairs. Real estate broker Chris Ann Cleland, with Long and Foster in Gainesville, VA shares with us why that strategy isn't better thanmaking the repairs yourself before putting the home on the market.
 

6. Sellers Unwilling to Negotiate with Buyers

Setting a market price on a home is not an exact science. Many real estate agents will give the seller a range in which they predict the home will sell. As a seller, you should always want the most money the market will bear. That being said, the unwillingness to negotiate with buyers can turn away even the most serious buyers.

Price is not the only condition which is open to negotiation. Buyers and sellers can negotiate on dates, fixtures that might stay with the home, repairs and a host of other sticking points. Sellers that refuse to negotiate and are set on digging in their heels are much less likely to find a willing and able buyer.

Don't be insulted by low offers. Buyers want to get the home for the best price and on the best terms they can. Just like a sellers wants to sell for the best price on the best terms. It's rare that either party walks away from a negotiation with everything they want. Motivated sellers understand this and are willing to negotiate.

Debbie Reynolds, a broker with Prudential PenFed Realty in Clarksville Tennessee, cautions sellers against being unwilling to negotiate as well as second guessing your original listing price.

7. Bad Photos in the MLS

This one will most likely fall on your real estate agent. But knowing that bad photos in the MLS can be an impediment to the sale of your home, as a seller it's imperative that you demand great photography from your agent.

Studies show that greater than 85% of people are going online as a part of their research for buying a home. Most buyers will probably first be introduced to your home online. Poor photos could be cause for them to disregard your home before they ever set foot in it. 

The photos used to market your home are generally the first impression any buyer will have of your home. When picking an agent to list your home, ask to see examples of photos from previous listings. Do their photos make you want to take a look at the home?

Never let your home go on the market without photos! If it means waiting a day or two before listing, wait. A large number of potential buyers in your market will be exposed to your home the first day it goes on the market. Having great photos the first day the home hits the market is a must.

Tammie White, a REALTOR® with Benchmark Realty LLC in Franklin Tennessee tells us why "it is crucial to have professional photographs to show off your home."

8. The Home is Just Plain Messy

You were late for work this morning so you ran out of the house without picking up from last night's dinner. Not a big deal.....unless you have potential buyers that will be stopping by. 

Some people may be able to look past the dishes stacked up in the sink, but enough buyers won't be able to look past the mess. Remember, buyers want to envision their things in your house. The more obstacles you put in the way, the harder time they have connecting with the home emotionally.

Take the time every day to make sure everything is cleaned up and the home is in showing condition. 

Woody Edwards, a REALTOR® with First Choice Realty in Chesterfield Virginia is reminded of an old saying his grandmother used to have, "never leave home until the home is in dying condition". This couldn't be more true than when selling your home.

9. Sellers Who Like to Play Tour Guide During Showings

Almost every real estate agent who participated agreed that sellers should leave the house during showings. Some sellers want to stick around and make sure buyers see all the important features of a home. The problem with that.........as a seller you don't know what's important to a buyer. 

Sellers that hover around during a showing will make the buyer nervous. They won't feel comfortable discussing things they like or dislike about the house with their agent. In addition, most buyers like to explore a little bit. Interested buyers tend to do things like open cabinets and check in closets to get a better sense for the entire home. A hovering seller can make this very uncomfortable for some buyers.

Bottom line......leave the house when it's being shown. Your presence there will only make things worse. Karen Feltman, a real estate agent with Skogman Realty in Cedar Rapids Iowa gives you a couple ofspecific ways that a seller's meddling during showings can hurt or kill a deal.

10. Picking the Wrong Agent

You decided to list with your aunt or with your friend that just got in the business. You paid no attention to their experience or what they do to market a home. Maybe not the best idea. 

Real Estate agents will often suggest interviewing more than one agent. You'll never know if your aunt is going to do a good job of marketing your home for sale if you have nothing to which to compare her. 

Don't be scared to ask a real estate agent questions about why they are a better choice than anyone else you may be considering. Just like with any profession, there are good real estate agents and there are bad real estate agents. Anita Clark, a REALTOR® with Coldwell Banker in Warner Robins Georgia shares a great list of potential questions you will definitely want to ask before you pick an agent. 

Real Estate Hidden Gems

Mortgage servicer to pay $268 million to Californians

It's part of a $2.1-billion national settlement with Ocwen Financial, which is accused of breaking state law by denying loan modifications and charging unauthorized fees.

http://www.latimes.com/business/la-fi-ocwen-foreclosures-20140318,0,1317760.story#ixzz2wRSnOS7m

By E. Scott Reckard | LA TIMES

 

California victims of alleged foreclosure abuses will get $268 million in relief from a $2.1-billion national settlement with Ocwen Financial Corp., the nation's largest non-bank provider of mortgage customer service.

Ocwen broke state law by improperly denying loan modifications, failing to honor modifications granted by prior servicers and charging unauthorized fees, according to the California Department of Business Oversight.

"Californians should not lose their homes because of deceptive and poorly executed mortgage servicing practices," Commissioner of Business Oversight Jan Lynn Owen said Monday in a news release.

The announcement provided new details on how alleged victims would benefit from the settlement, finalized last month between 49 states, the U.S. Consumer Financial Protection Bureau and Ocwen. It also spotlights a growing controversy as major lenders outsource their mortgage servicing operations to Ocwen and other firms that specialize in collecting payments, pressuring delinquent borrowers and foreclosing on defaulted mortgages.

The banks are seeking to limit the hassle and cost imposed by tougher regulation of loan servicing in the aftermath of the mortgage meltdown. That's bringing a rush of new business to firms including Ocwen and Nationstar Mortgage Holdings Inc., which traditionally have specialized in handling subprime borrowers.

But as they have mushroomed in size, the specialists have become targets for foreclosure abuse complaints similar to those that have plagued the nation's largest banks since the housing crash.

Ocwen, an Atlanta company with a mortgage servicing arm based in Florida, began managing home loans in 1988. Thanks to an acquisition spree, the number of residential loans it services has grown from about 350,000 to 2.9 million over the last four years. The unpaid balance on these loans totaled $464.7 billion as of Dec. 31.

Mark Buchignani is among those accusing Ocwen of improperly threatening to foreclose on his home. He took a second mortgage of $39,500 when he bought a home in Phoenix in 2006. The original servicer, since replaced by Ocwen, was GMAC Mortgage, a spinoff from General Motors Corp. that had been a major player in home loans during the housing boom.

Buchignani said he never missed a payment until July, when automatic transfers from his bank account stopped going through for four months without his knowledge. He said he continued to receive emails saying the payments had been made. Since he discovered the problem, his offers to bring the account current have been met only with penalties, he said, and a recent threat to foreclose on the home.

"No amount of communication, calls or emails or faxes or letters, complaints or explanations has deflected them from piling on fees and interest and penalties and credit damage," said Buchignani, a video-game designer who recently moved to Southern California and is renting out his house in Arizona.

"They continue to forward my communications to 'Research,' who then issues letters saying they will respond within 20 days," Buchignani said. "But, of course, they don't."

Ocwen did not respond to requests for comment Monday.

In its recent annual report, Ocwen described itself as a leader "in foreclosure prevention and loss mitigation that helps families stay in their home and improves financial outcomes for investors."

But advocacy groups and state regulators have questioned whether it and other big independent servicers have been able to handle the influx of mortgages.

Ocwen said last month that it had indefinitely postponed a planned purchase of servicing rights on about 184,000 severely delinquent Wells Fargo home loans with a principal balance of $39 billion. The move came in response to pressure from the New York Department of Financial Services. Ocwen said it would work with the New York regulator "to resolve its concerns about Ocwen's servicing portfolio growth."

Many of the servicing rights Ocwen acquired came from such household names as Bank of America and Chase. The biggest deal of all was with Residential Capital, which owned the GMAC servicing rights, and while in bankruptcy proceedings sold Ocwen the servicing rights to more than 1.7 million loans in February 2013.

ResCap, as it is known, was among five lenders that signed the national settlement requiring them to provide $25 billion in relief to distressed borrowers; the others were BofA, Chase, Wells and Citigroup Inc. As a result, Joseph Smith, the former North Carolina banking commissioner overseeing the lenders' compliance with the settlement, has now been given authority as well over Ocwen.

In an interview Monday, Smith said he hadn't yet had time to test and report on Ocwen's compliance with stricter servicing rules contained in the settlement. "They're still new to the party," he said.

"My colleagues and I are going to be working on these kinds of issues with Ocwen for the next three years," Smith said, a reference to when his authority expires.

Copyright © 2014, Los Angeles Times

http://www.latimes.com/business/la-fi-ocwen-foreclosures-20140318,0,1317760.story#ixzz2wRSsXfpZ

Helping Your Appraiser do the Best Job

By Lew Sichelman | LA TIMES

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http://www.latimes.com/business/realestate/la-fi-lew-20140316,0,186251.story#ixzz2wRDrk5eY

Your home is on the market. You found buyers, a nice young couple just starting out, and they're sold on the home. But wait — there's one more person you have to sell: the appraiser.

You can no longer try to influence the professional who's responsible for placing a value on the house — a value that the lender must feel comfortable with if, for some reason, your buyers don't pay back their loan and the bank has to foreclose.

No, the days of MAI — which stands for Member of the Appraisal Institute but was euphemistically known in the trade as "Made as Instructed" — are long gone. But there is still plenty you can do to improve the chance that you will obtain the value you are looking for.

According to builders and realty agents, many a deal has been scuttled when lenders assigned appraisers who lived hundreds of miles away or were not familiar with the area. So after the appraiser calls to set up an appointment, check his or her bona fides.

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FOR THE RECORD:
Appraisal tips: A Housing Scene column in the March 16 Business section on how to get the best appraisal for your house incorrectly identified John Brenan as director of appraisal issues at the Appraisal Institute. Brenan is director of appraisal issues at the Appraisal Foundation. The column also was incorrect in stating that the Appraisal Institute was created byCongress to set appraisal standards and appraiser qualifications. That description applies to the Appraisal Foundation. The Appraisal Institute is a professional organization based in Chicago. —

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"The best way for owners to combat potential problems is to ensure the appraiser is qualified and competent," says Ken Wilson, president of the Appraisal Institute, a trade association based in Chicago. The organization was created by Congress to set appraisal standards and appraiser qualifications. "Consumers have every right to demand the use of someone with field experience in their market and knowledge to handle the assignment properly."

Ask your lender about the appraiser's professional designations. How long has he practiced? What level of experience does she have with your market and your type of property? Is he familiar with the neighborhood?

Of course, you spruced up the house when you put it on the market. You painted, perhaps, and you certainly fixed that broken window in the master bath. And you put away all that clutter in the kitchen.

Now make sure the house is just as dandy when the appraiser finally arrives. Tidy up. Get the dishes out of the sink and into the dishwasher. Clean off the counters. Pick up the dirty clothes from the bathroom floor. Change the furnace filters.

Also, send the kids off to the neighbors' or out to the movies, and lock up your animals.

None of this will add or subtract from the valuation. But human nature being what it is, it will convey the notion that the house is well-maintained, says John Brenan, director of appraisal issues at the Appraisal Institute.

Although you cannot try to directly influence the appraiser — offering a free dinner at his favorite restaurant, maybe, or a little cash under the table — you can speak with him. It's a myth that you can't.

"Conversation is not only allowed, but it is vital," Brenan says. "The appraiser needs to be able to discuss pertinent items about the house or contract."

When the appraiser arrives, present him with a list of everything in and about the house that you believe adds value — new windows, perhaps, or an addition above the garage. You are not trying to influence the deal, per se. Rather, you are "simply documenting," Brenan says. "You are not saying you need an extra $5,000 because you put on a new roof last year. You're just saying that you put on a new roof."

Your list should include a detailed description of any improvements or replacements, the dates they were made, who did the work (backed up by invoices to show they were done by a professional as opposed to a weekend do-it-yourselfer), a brochure to show the quality of the materials and building permits.

Also list any ways your house differs from others on your block: different finishes used, your better view, your larger lot size. "The list goes on and on," Brenan says. "You can't provide enough information about the house, the neighborhood, the schools. It will help give the appraiser a better understanding about the market."

Also give the appraiser a list of comparables, or "comps," which are similar properties in your neighborhood that sold recently. The appraiser may well already have the exact same houses, so at the worst, your list may be redundant. But then again, he may have only one or two.

Either way, Brenan says, "as long as you don't make any demands, a good, competent appraiser should appreciate" the help.

Some appraisers still balk at accepting such information. One recently told Jill Sackler, an agent with Charles Rutenberg Realty in Merrick, N.Y., that he was no longer allowed to do so. But Barbara-Jo Roberts Berberi, a Rutenberg agent in Crystal Beach, Fla., had the opposite experience recently.....

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http://www.latimes.com/business/realestate/la-fi-lew-20140316,0,186251.story#ixzz2wRE25z1c

Distributed by Universal Uclick for United Feature Syndicate.

Copyright © 2014, Los Angeles Times

March Real Estate

Über Rich...and Getting Richer

"For Rich, ’13 Was Good for Making, and Spending, Money" - an  article in Yesterday'sNew York Times, highlights the fact that the wealth of the über-rich continues to grow.  

A few of the highlights:

• The world’s club of ultrawealthy individuals, or those with $30 million or more in net assets, added about 5,000 new members last year
• Over the last decade, the ranks of the über-rich have swelled by 59 percent, and the register of billionaires climbed 80 percent, to 1,682
• The world’s 0.1 percenters had a pretty good year; three-quarters said their assets had increased. Only 4 percent said they wound up worth less
• By 2023, China is expected to have 322 billionaires, more than Britain, Russia, France and Switzerland combined
• Looking for someplace to park their wealth, the world’s rich still prefer property

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Millennials: How to Sell to Today’s Youngest Homebuyers

Posted by RE-Insider  • Categorized as Industry News

As with any generation, the Millennials have their own unique likes and dislikes – ranging anywhere from music to food – and one trend which seems to be significantly different from any of their predecessors is their preference in real estate.

In 2013, Generation Y accounted for roughly one third of all home sale, a number which will only rise as time goes on. While this can be a great thing for younger agents and brokers who can relate to these new homebuyers, this transition may not be the easiest for many of the seasoned veterans working in today’s market. The truth is that the median age of realtors today is 57 years old, a substantial difference from the median age of first-time buyers which is currently 31.

So to help adapt to this changing market, here are a few tips to use when finding the right property for the youngest of homebuyers:

1. The best things come in small packages
Keeping up with the Joneses – a race to prove cultural and socio-economic superiority through the purchase of material goods – was a common theme in the lives of many baby boomers, and as a result many of them have sought after a big home with a big price tag. While this behavior may not be a problem for some, it has caused numerous problems for Generation Y. Over 50% of Gen Y kids come from divorced homes. Why? Communication between family members and money problems are the most cited reasons, and many believe these problems stemmed directly from having a big house. As a result, the Millennials want smaller houses on smaller lots. This puts less financial strain on those with tighter budgets and also promotes more interaction between family members.

2. Diversity is key, so jump into the melting pot
Many members of Generation Y have been exposed to more culturally diverse areas, and as a result they look for similar diversity. Urban centers offer a buzz and culture which cannot be found in many suburbs – people from all over the world as well as the music, food and arts they bring with them – and the Millennials actively seek out these differences.

3. Look for a greener living
It has been reported 57% of all members of Generation Y prefer products that are environmentally friendly, and this number is expected to keep going up. Builders are responding to this trend by providing homes with energy-saving appliances, as well as insulation made from soy or other natural products, so keep these “bonuses” in mind when trying to sell a home.

4. A short walk can go a long way
One trend which has surfaced lately in the Millennial community is their interest in walkability. Many members of Generation Y would prefer to walk or ride a bike as opposed to driving to work, so keep in mind the different businesses, restaurants, bars, parks, or anything else that is in walking distance when trying to sell a home. Not only does walking or riding a bike encourage a healthier lifestyle, but it further supports the Millennials’ interest in an eco-sensitive living.

Have you noticed these changing trends in buyers today? What are your thoughts?

Chinese Real Estate Investors Predicted to Flood U.S.

China and US ‘to top cross-border property investment’

 Asia, Investment, Lifestyle & Leisure Properties, Market Trends, News, News By Region, News By Topic, North America,Shows and events, World News1 Comment

 By Adrian Bishop, Editor, OPP Connect

By 2016, Chinese cross-border real estate funds flowing in to the United States will be the highest in the world, beating the current US$1.3 billion from Singapore to the UK, say private equity experts

Within the next two years, the world’s leading cross-border property market will be between China and the United States, experts predict.

As interest from Chinese investors continues to build, the US property market is set to become the world’s top recipient of cross-border real estate funds from a single country, private equity investors believe.

According to 70% of investors polled on at the annual Private Equity Real Estate conference, PERE Summit: Asia 2014, held in Hong Kong, which ended yesterday (Thursday) the United States will become the world leading recipient of real estate funds from China sometime before 2016, the Wall Steet Journal blog has reported.

In the last two years, the biggest cross-border property investment has been from Singapore, which put US$1.3billion into the UK market. Chinese investment into the US is currently in fifth place, but PERE Summit delegates  say it is set to rise to the top.

Hing Yin Lee, Senior Executive Director of the real estate investment department at Ping An Trust, says, “Liquidity is really abundant in China, there’s a lot of hidden liquidity in institutions that they need to deploy capital. Cap rates have been compressed to very low levels they need to look for yield and opportunity.”

Among leading targets for High Net Worth Investors, commercial investors and developers are the gateway cities of New York, Los Angeles and San Francisco, say sector experts.

Chinese investment in overseas property is set to at least double in 2014, according to the Asia Forecast 2014, published by Colliers International.

“Given that Asia is currently in a very different property cycle than the US and Europe, its investors will become more active in outbound investment, focusing on key gateway cities, such as London, New York and Chicago.

“Chinese investors, in particular, are expected to look for overseas real estate opportunities with better yields and the strategic benefits of portfolio diversification.”

Other countries are also desperate to pick up Chinese foreign property investment and are forming new partnerships.

RE/MAX Australia New Zealand says it wants to make sure its properties are effectively marketed to the Chinese and it has just signed a deal with leading Chinese-language overseas property portal, Juwai.com.

Michael Davoren, managing director of RE/MAX Australia and New Zealand says, “Our agents have asked for this. Our vendors have asked for this. Everyone wants to make sure their properties are marketed in China.”

According to Juwai.com data, Australia and New Zealand are favourite destinations for Chinese homebuyers, thanks to their relative proximity to China, good education opportunities, protected natural environment and stable real estate markets and economy.

While Chinese buyers favour Auckland as the top destination in New Zealand, places like Kerikeri, Dunedin, Taupo and Northland are also popular hot spots.

*OPP has just appointed Sophia Liu, who has extensive business development, sales and marketing experience, as its new Commercial Director in China. She aims to expand the OPP business in the region, including developing OPPLive China and OPP China magazine (see http://www.opp-connect.com/28/02/2014/opp-appoints-new-commercial-director-in-china/).

OPP has also recently opened an office in Singapore, headed by Managing Director, Harlow Russell and Commercial Director, Cedric De Souza.

For the full WSJ blog story, go to: http://on.wsj.com/1jFMcUF

By Adrian Bishop, Editor, OPP Connect

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http://www.opp-connect.com/28/02/2014/china-and-us-to-top-cross-border-property-investment/

4 Ways You Can Get More Services From Your Real Estate Agent

4 Ways You Can Get More Services From Your Real Estate Agent

By Heather Levin | MoneyCrashers

Even with rock-bottom interest rates and a glut of bargain-priced homes on the market, qualified buyers are still in short supply. This is primarily because it’s hard to getapproved for a mortgage loan unless you have stellar credit and a hefty down payment. But even when buyers do qualify, they often feel skittish about investing in a home. After all, the economy hasn’t yet fully recovered, and the prospect of losing a job while responsible for a mortgage is enough to scare many people away.

One effect is that real estate agents are feeling the pinch, and therefore are willing to jump through hoops for buyers and sellers alike. In other words, a variety of extra services are to be had often at no charge and simply by asking.

How to Get More Out of Your Real Estate Agent

1. Home Staging
Home staging is the preparation of a home to make it appear as visually and aesthetically appealing as possible, therefore setting it up to be sold more quickly and for a higher amount. Done properly, home staging can transform a property into a welcoming, attractive place that makes the prospective buyer yearn to own it.

Back in the real estate market’s hey-day, home staging was typically an extra service that sellers had to pay for. However, some real estate agents now offer free home staging simply if you list with them. Sometimes, they do the home staging themselves, or they outsource it to a professional stager with whom they work regularly. In fact, last time I listed my home, my real estate agent offered this service for free, which saved me several hundred dollars.

If your real estate agent doesn’t currently offer this service, ask if they’d be willing to provide it free of charge – many will in order to keep your business.

2. Professional Virtual Tours
A virtual tour of your home is the new standard among real estate companies – at least, it should be. Instead of simply displaying static photos of your home online, a virtual tour utilizes new digital technology to take viewers through your home and property using videos, 360-degree panoramic images, and seamlessly stitched photographs, often also incorporating sound effects, music, narration, and text.

Unfortunately, many real estate agents, especially those in rural areas, still don’t offer this service to sellers. When you’re shopping around for an agent, look for one that offers this service as it alone can attract potential buyers who would rather take a “tour” than simply look at pictures. Ideally, your home should be photographed by a professional photographer and then submitted to major sites, such as YouTube, Trulia, and Zillow. If your current real estate agent doesn’t offer this service, request it anyway. If they still can’t provide it, you may want to consider going with an agent who can.

3. Neighborhood Analysis
If you’re shopping for homes in an unfamiliar area, you might feel overwhelmed by the number of neighborhoods. After all, neighborhoods are just like people; they can have very different characteristics, even within a few blocks. Some might be quiet and reserved, others might be funky and artistic, and yet others may be a mecca for young families.

Finding the right neighborhood can be vital to making sure you’re happy long-term, so create a list of priorities, and search accordingly. What is most important to you – proximity to work or proximity to stores? Do you prefer to live in an area with lots of parks, trails, and bike paths, or do you prefer a more urban environment? If you have children, it is especially important to consider the local schools and the crime rate. Remember, it’s much easier to update or remodel a house than it is to change an entire neighborhood.

While most real estate agents can give you an overview of each neighborhood you’re considering, few will provide an in-depth neighborhood analysis that includes detailed information about local schools, area parks, and crime rates. Other factors that may be included in a neighborhood analysis include land uses, such as whether the neighborhood is primarily residential or mixed use (residential and commercial), and property types, such as single-family homes, apartment complexes, and condominiums. However, agents are prohibited from providing specific demographic information – but they can give you an overview of the kinds of families they’ve seen living in and moving into an area. This insightful information can be invaluable for buyers looking for the best fit.

4. Relevant Discounts
In order to market themselves more effectively, many real estate agents establish relationships with other home-related businesses that can benefit their clients. For example, they may coordinate with the local hardware store to offer discounts to clients, or even with contracting professionals, such as roofers, plumbers, electricians, and painters, to provide services at a discounted rate. Other agents may even offer free services from an interior designer or landscaping company if you buy or sell through them.

When you’re shopping for a real estate agent, look for those who can offer discounts on other professional services. They’ll probably tout these discounts on their marketing materials, so it’s usually a perk you don’t have to request.

Additionally, you may be able to take the opposite approach and ask if your agent is willing to accept a smaller commission for fewer services. With the housing market still struggling, agents are more willing to compromise in order to get your business....

CONTINUE READING HERE...

http://www.moneycrashers.com/more-services-real-estate-agent/