I read an astonishing statistic today: Zillow reported that about 47% of homebuyers think they own a home once they have signed the purchase contract. Not only did this shock me, but it really made me upset. Someone – the agent – is not communicating. This is way too important to not discuss with buyers, and we have to have that conversation with them, every time!

After reading the statistic and tweeting about it, one of my colleagues responded that his clients changed the locks on their soon-to-be new house, before the close of escrow.

I decided to have a look at our residential purchase contract to find language that specifically states WHEN the buyer owns the home for which the contract was written. I could not find any, but there are numerous mentions of escrow and what happens during that period. I suppose those who drafted these contracts either assumed the buyers would figure it out that escrow must actually close before they become home owners, or assumed their agents would explain this.

While I think maybe the contract drafters may want to consider including a layman’s paragraph about actual ownership and and what point that is established, it is also extremely important for the agents to be sure to educate their buyers. Whether or not my buyers want to read it, I briefly explain what is on each page as they are signing, and always suggest they read it.

The lesson to be learned here is that if you are a real estate agent, you need to be candid with your clients. Explain everything, even if you think your clients already know it, or think it is silly you should do so. Buyers: if you do not understand something please ask your agent – that is their job, they have a fiduciary relationship with you and keeping you informed is of utmost importance.

The numbers are in! Below are the home sale statistics for San Diego in 2011. If you would like a .pdf copy of the entire chart, please email me at Rachel@LaMarRealEstate.org and I will be happy to send them to you. Thank you to title rep extraordinaire, Roxanne Kelemen with Advantage Title for this data.

If you don’t listen to the news and do not know about SOPA and PIPA, especially if you are in the real estate industry or are a buyer or seller, you need to understand what it is and how it might effect you.

SOPA, the Stop Online Piracy Act, and PIPA , Protect IP Act, threaten the entire internet, and will have a big impact on how we use it. The bills, backed by the entertainment and music industry, as well as other big companies, will allow for the control of content on the internet, in order to prevent piracy. If you have a website and you post copyrighted content on your site, your site could be SHUT DOWN! It could be something as simple as posting a family photo on Facebook, where there is something in the background that is copyrighted, or posting a video on YouTube, where a copyrighted song is playing in the background – Facebook and YouTube could be shut down.

For Realtors, who rely on content sharing daily through multiple listing services, as well as photos and videos, this could be bad news. It would effect the consumer’s ability to search for homes, see videos and photos, and visit real estate websites. I have no doubt that the majority of real estate blog sites would be shut down under this new legislation, as well as millions of other blog sites. I know that to go through the hundreds of blogs and photos on my own blog site would be an exhausting task, and that there is a chance I might miss something that is copyrighted. Could I afford to have my website and blogsites shut down? NO!! I would likely have to find a new career.

Many websites and blogsites went black today in protest.

SOPA and PIPA are scheduled to be voted on by Congress on January 24. I urge you to call, email and write your local Congresspeople to tell them you are against these bills. The entire internet is at risk.

I have had several clients recently ask how to purchase a foreclosure property, and it is a great question. Oftentimes buyers do not differentiate between the purchase of a foreclosure, a pre-foreclosure, and a post-foreclosure. Let’s take a look at the different ways to purchase property in various stages of foreclosure:

1. Auction (the one true way to “buy a foreclosure”). If you want to buy a foreclosure this is the typical way to do so. Auctions are definitely tricky and you need to understand the process and what you may be getting into. There are several things you really need to understand before going to auction – for explanation read this article. I usually do not recommend auctions to my clients, as there are some caveats (oftentimes you cannot inspect the property first, you do not receive any disclosures, you may be bidding against experienced auction-goers, etc.) If you do decide to go to an auction make sure you are well prepared.

2. Short sales (aka pre-foreclosures). A large percentage of foreclosure-related sales are sold via short sales or lender owned listings. Purchasing a short sale can be a good way to get a better price on a home, but the buyer has to have no aversion to waiting to close escrow – sometimes as long as 3-6 months. The good thing about a short sale is that you will get to inspect the property, and usually you will be provided with disclosures from the owner. For more information on short sales and how they work, you can visit the short sale information tab on my website. I have also written numerous blogs about short sales.

3. Lender-owned/REO (aka post-foreclosures). REO (real estate owned) properties are those that are owned by the lenders who hold the note. They have already gone through the foreclosure process and are now active in the market. Most often, these properties are priced below comparable sold homes, and often the price is reduced every so often if the property has not sold. Post foreclosure properties can also be owned by “flippers,” who purchased the property at auction, did some work, and are reselling it for profit.

The good news then is that many of these homes can be purchased at a savings. The not so good news is that buyers will not likely receive disclosures, as the bank obviously never lived in the property. However, the purchase process is like that of a normal sale – buyers are able to view the property, obtain inspections and reports, and exercise due diligence to their satisfaction with the property condition.

What about all those foreclosure websites? Foreclosure websites can be helpful, but honestly if you have an experienced agent s/he can do the research for you, saving you money in subscriptions. If you are focusing on a particular neighborhood, your agent can research the neighborhood via the public records, and find out who is delinquent, and which properties have notices of default or auction dates filed. If the property is not yet listed as a short sale your agent can see if the owner is open to doing so, allowing you to write an offer and have it presented to the bank. You can also find out auction dates (which often get postponed – the new dates do not necessarily list on the public records, but your agent can do further research). If you are a skilled auction attendee and purchase a lot of foreclosed properties this way, subscribing to one of these sites is a good idea.

There is no magic bullet that will get you a screaming deal on any of these properties. But if you do your homework you can likely acquire nice home at a savings. If you are not afraid of the challenge these can all be great ways to buy your next home. Make sure you have an experienced agent to help you if you are buying a short sale or REO property. If you have any questions about foreclosure please do not hesitate to post them in the comment section below, or email me at Rachel@LaMarRealEstate.org.

There is a lot of news out there in the real estate market, and much of it is very positive in pointing toward a market recovery. I am not putting a spin on things – this is what is going on now and the news looks good.

Mortgage Delinquencies Down. The number of mortgage delinquencies is lower than it was back in January of 2010 – 25% lower, according to LPS (Lender Processing Services). What does this mean? Many say this means the market is starting to recover, and they are predicting a decent year for housing. With less delinquencies there will be fewer foreclosures. The states with the highest percentage of non-current loans are Florida, Mississippi, Nevada, New Jersey and Illinois. Those with the lowest percentage of non-current loans are North Dakota, Arkansas, Wyoming, South Dakota and Montana. You can read the entire report here.

Mortgage Applications Rise 4.5%. Continuing on with the premise that the market is recovering, mortgage applications are on the rise, according the the Mortgage Bankers Association. Refinancing also rose, and with low interest rates continuing it could be a boom to the Spring home buying season. Click here to read the entire story posted by Housing Wire.

Lowest Reported Lender Owned Inventory Since 2007. Lender owned inventory, or REO properties, has dropped 34% since 2010, and is at the lowest rate since 2007, according to a year-end report by Realty Trac. 804,423 homes were repossessed by lenders in 2011.

Fannie Mae Extends Mortgage Forbearance Program for Unemployed Borrowers. Fannie Mae just released new guidelines to help unemployed borrowers. The servicer will reduce or suspend mortgage payments to those who qualify, for a specified period of up to 6 months if requirements are met. At the end of the period the servicer will evaluate to see if the borrower is eligible for up to another 6 month extension. No foreclosures will be filed during these forbearance periods. The program is slated to begin March 1, but servicers are being encouraged to begin helping borrowers right away.

And some California real estate news…

Keep Your Home California Program Adds More Lenders. Keep Your Home California, the program dedicated to helping borrowers avoid foreclosure, has added more lenders to the program roster, bringing the total to 55 servicers who have pledged to assist struggling homeowners. According to a Union Tribune article, the servicers are amongst the biggest names in the mortgage industry, holding 90% of all California home loans. For more information on the program you can visit the website.

Mello Roos Taxes No Longer Deductible. A new tax law will create more tax liability for homeowners with mello roos taxes. Until now, a homeowner was able to deduct his entire property tax bill, including mello roos assessments, from his state income tax. Starting with the 2012 tax bill, the Franchise Tax Board will require property tax bills to be divided into deductible and non-deductible portions. Mello roos taxes will be non-deductible. Since the 2012 taxes are not due for over a year there are groups that will be fighting this tax increase, citing a bad move on behalf of the state in difficult financial times. If the law sticks it could create problems in selling homes with mello roos taxes, leading to losses in property values. We will have to wait and see if the FTB reverses this one.

With a new year there are new laws, so here is my annual list of some of the new real estate laws you may want to be aware of going into this new year:

Landlord Right to Prohibit Smoking. California Senate Bill 332 gives landlords the right to prohibit smoking in their residential rental properties, including outside areas. The non-smoking areas of the property must be designated in the lease agreement. Existing tenants must be provided 30 days notice if a landlord wishes to impose these restrictions on current leases. Law effective January 1.

Foreclosure Postponement Notice Requirement. Senate Bill 4 requires specified notices of how to postpone a foreclosure sale be provided to owners who receive foreclosure notices. Lenders seeking foreclosure are required to make a good faith effort to provide such information to those who seek it. Law effective April 1, 2012.

Owners Right to Rent Condominium. Senate Bill 150 allows an owner of a unit in a common interest development to rent or lease out the property despite homeowner rules to the contrary, as long as the rules were not in effect before the owner took title. Law effective January 1.

HOA Restrictions Against Excessive Fees. Senate Bill 771 requires HOAs (home owner associations) to limit the costs of preparing and delivering HOA documents and disclosures. Once the HOA estimates a fee for doing so, and the fee is paid, it cannot tack on unreasonable fees beyond the estimate, nor can it threaten to withhold release of the information to sellers until extra fees are paid. Law effective Januart 1.

Restricting Actions of HOA Boards. Senate bill 563 requires HOA boards to provide at least 2 days notice to owners for HOA meetings, with the exception of emergency meetings. Boards are not permitted to take action on any business items outside of a meeting, with the exception of those that have been delegated to managing personnel or others. Law effective January 1.

School Residency Attendance Can Be Established Via Parent Workplace. Under Senate bill 381, residency requirements for specific school districts may now be established by parent workplace, if at least one parent/legal guardian of the pupil is “physically employed within the boundaries of that district at least 10 hours per school week.” This is determined by the district, and “may” be allowed should the district choose to do so. This law was already in place, but is now extended through July 1, 2017.

Small Claims Court Judgment Increase. Under Senate bill 221, small claims judgments are now increased from $7500 to $10,000 if the claim was brought by a natural person (if brought by a corporation the limit is still $5,000). Law effective January 1.

Real Estate Agent Licensing/Discipline Changes. There are numerous changes to discipline in regards to real estate agents, including those related to license suspension for failure to pay taxes, and the requirement to report any disciplinary actions and escrow activities to the DRE. Senate Bills 53, 706. Laws effective January 1.

For a complete list of all new 2012 laws go to www.leginfo.ca.gov for California laws or http://www.gpo.gov/fdsys/ for federal laws.

Could it be that lenders are starting to cooperate more with short sales? And if so, what does that mean to sellers and buyers? Might short sales get easier and speedier, thereby ridding many markets of distressed inventory and putting them on the road to recovery? This may sound too good to be true, but there are signs that it may in fact be happening.

According to HopeNow, short sales increased last year by 26,000 and foreclosures decreased by 255,000. Both had increased in 2010.

Some major lenders have adopted systems by which to better handle foreclosures, and others have indicated they will be doing the same.

Short sales have always been a mixed bag of emotions. They can be emotionally draining, dragging out the inevitable: loss of a home and all the memories that go with it. But on the flip side, distressed homeowners can avoid the ramifications and stigma of a foreclosure through a short sale. Short sales can usually save something for all parties involved – money, credit, and hopefully sanity.

Here are some benefits of short sales over foreclosures:

For the seller:

1. Less of an impact on credit

2. Can purchase a home again in several years, vs. 7-10 years with a foreclosure

Benefits for buyers:

1.  Prices are often lower

2.  Buyers usually get all the disclosures and can conduct property inspections (when buying foreclosure properties at auction, buyers often must do so without the ability to view the home and conduct inspections…not to mention all the competition from experienced auction buyers).

Benefits for lenders:

1. Short sales cost less

2. Short sales typically sell for higher prices than foreclosures (they lose money on the subsequent sale)

Benefits for neighborhoods:

1. Short sales tend to sell quicker and for prices more in line with comparable sold properties, protecting values more

2. Lower vacancy rates with short sales, thus less chance for vandalism and maintenance issues (which effect surrounding property values)

So, it appears that lenders, at least some of them, are making efforts to increase cooperation with short sales – we will see going forward if it becomes a reality. I sure hope so.

Once in a while a property comes along that is very special…that time has come. Welcome to 4029 Sunnyhill Drive in Carlsbad – a wonderful home on a large half-acre, unobstructed ocean view lot, just moments to the beach, shopping and dining.

Highlights:

• Ocean views! Expanded view potential with second story addition
• Updated kitchen with granite counters, stainless appliances
• Detached guest house and office, plus 3 greenhouses
• Outdoor kitchen with tandoori and pizza ovens, BBQ, kegerator
• Gated property
• Ranch style, single story home

• Large, private lot 23000 square foot lot
• 2565 square feet of living space (guest house and office not included in square footage)
• Resort-like pool and spa, recently resurfaced
• Basketball court, tennis backboard, large grassy area
• Mature landscaping with multiple fruit trees
• Moments to beach, shopping, dining, Carlsbad Village, schools
• No HOA or mello roos
• Carlsbad schools
• MLS number 120000115

To view this property or get more information please contact Rachel LaMar, Broker, at 760-310-9466 or Rachel@LaMarRealEstate.org. Visit property website for photos, information. CA DRE license 01399682. Property MLS number 120000115.

Welcome to 243 Azul Way! This new listing in the Pravada neighborhood of Oceanside offers a wonderful floorplan with almost 2400 square feet. With four bedrooms, a downstairs office and a sunny loft, this home has it all.

Features:

• 2392 square feet
• Light and bright
• Large living room/dining room combo with cathedral ceilings
• Downstairs office/den
• Upstairs laundry room
• Quaint backyard with stamped concrete
• 3 car garage
• Custom paint
• Fireplace in family room
• Kitchen/family room combo
• Large play area just steps away
• Upstairs loft
• Close to shopping centers
• MLS number 110068185

Located on a quiet cul-de-sac with a community play area, this home is waiting for you! For more details please visit the property website. Please contact Broker Rachel LaMar for more information at 760-310-9466, or Rachel@LaMarRealEstate.org. CA DRE license number 01399682

Happy New Year everyone! I can’t believe 2011 is coming to a close. I am excited for 2012 and hope that you all have a wonderful year, filled with good health, happiness, laughter and success. There is a lot going on in January in San Diego, so enjoy!

January 6-7, 2nd Annual Free E-Waste Recycling Event Need to get rid of the electronic waste just sitting around your home or office? This free E-waste recycling event is sponsored by Computer Circulation Center, Inc. and the Oceanside Chamber of Commerce. Time:  9:00 am – 5:00 pm Location:  2205 Vista Way, Oceanside For more information call 760-722-1534

January 6-8, Gem Faire The Gem Faire, established in 1989, has become a world-renowned marketplace for the finest gemstones, beads, jewelry, minerals, fossils, meteorites, lapidary equipment, metaphysical items and much more at the lowest prices in today’s market.  Workshops and classes are also offered. Time:  Fri.  Noon – 6:00 pm / Sat. 10:00 am – 6:00 pm / Sun.  10:00 am – 5:00 pm Location:  Del Mar Fairgrounds, Bing Crosby Hall For more information visit www.gemfaire.com

January 8, Annual San Diego Resolution Run 5K & 15K San Diego Resolution Run will take runners on a loop around Fiesta Island in scenic Mission Bay Park’s De Anza Cove while raising funds for charities that seek to keep the environment healthy. Time:  7:00 pm Location:  De Anza Cove, 3000 East Mission Bay Dr., Mission Bay For more information visit www.sandyfeetevents.com

January 15, Petco Foundation Walk, Run, Wag This is a do-not-miss event for San Diegans and their beloved four-legged family members!  Walk or run a  5K or 1 mile course with your dog, or without a dog, or with a team.  This event will also include an expo where dogs and their owners can shop together for sports products, pet products and more. Time:  Starts at 7:00 am Location:  2260 Jimmy Durante Blvd., Del Mar For more information visit http://walkrunwag.com/san-diego/athlete-information

January 15, 32nd Annual Martin Luther King Jr. Parade An annual event commemorating the legacy of Dr. Martin Luther King.  The Parade features marching bands and floats, drill teams, dance groups, and other community groups. Time:  2:00 pm Location:  Harbor Dr. – Embarcadero For more information visit www.alpha-zsl.org/mlkdayparade.html

January 15-20, San Diego Restaurant Week Extraordinary three-course menus from San Diego’s best restaurants.  Choose from 180 of the city’s best restaurants and enjoy a fixed price, three-course dinner for $20, $30 or $40 per person, depending on the restaurant.  There are no tickets or passes required.  For a complete list of participating restaurants visit the San Diego Restaurant Week website. Time:  Varies Location:  Refer to website for participating restaurants For more information visit www.sandiegorestaurantweek.com

January 20-22  San Diego Lunar New Year Tet Festival The Vietnamese community, in celebration of the Lunar New Year, is presenting a festival to promote homeland traditions.  There will be a mock structure of a Vietnam village where  you’ll experience ancestral rituals and entertaining performances; plus contests, rides, food, and merchandise. Time:  Fri. 5:00 pm – 10:00 pm / Sat. 11:00 am – 10:00 pm / Sun. 11:00 am – 5:00 pm Location:  Balboa Park – lawn area & parking lot at Park Blvd. & President’s Way For more information visit www.sdtet.com

January 20-22, Del Mar Antique Show More than 250 premier antique dealers from all over California and the western United States will be selling the finest antiques & collectibles.  Appraisal service is available for $5 per item.  Restoration services are also available. Time:  Fri. & Sat.  11:00 am – 7:00 pm / Sun. 11:00 am – 5:00 pm Location:  Del Mar Fairgrounds, O’Brien Hall For more information visit www.calendarshows.com

January 21, Whale Festival The free Whale Festival is a family community event offering a wide variety of interactive and hands-on displays to spark the interest and imagination of any child.  Activities includes a walk-through gray whale, live sea creatures, free face painting, a kids art mural coloring project, a festival train ride and a bounce house.  Live music on-stage. Time:  11:00 am – 3:00 pm Location:  Port Pavilion on the Broadway Pier, on the corner of Broadway and N. Harbor Dr., Downtown San Diego, on the Embarcadero For more information visit www.whaledays.com

January 22, Carlsbad Marathon & Half Marathon This marathon features a rolling course, including 14 miles along the Pacific Ocean.  Includes 26 fully staffed course support stations, continuous entertainment and unsurpassed volunteer support.  The marathon and half marathon start and finish at Westfield Plaza Camino Real. Time:  5:00 am – 2:00 pm Location:  Westfield Plaza Camino Real, 2525 El Camino Real, Carlsbad For more information visit www.carlsbadmarathon.com

January 23-29, PGA Tour Golf Tournament San Diego is the host for the “Farmer’s Insurance Open” at the exclusive Torrey Pines Golf Course. Time:  Opening round 26th: 7:30 am Location:  Torrey Pines Golf Course, 11480 North Torrey Pines Rd. For more information visit www.pgatour.com/tournaments/r004/

January 26-29, San Diego Sunroad Boatshow The San Diego Sunroad Boatshow is complete with both land and in-water locations, focusing on the latest boats and marine equipment.  This years show includes over 100 new & pre-cruised sailboats and motor yachts, dozen of marine vendors with the latest nautical products & services, delicious food and drink sponsored by local restaurants, and special boating events and boat rides for kids and adults.  Fun for the whole family. Time:  Thurs. & Fri. Noon – 6:00 pm / Sat. & Sun. 10:00 am – 6:00 pm Location:  Harbor Island, San Diego Bay, East end of Harbor Island For more information visit www.bigbayboatshow.com/

January 27-29, Home Decorating & Remodeling Show The show features home improvement products and services offered by local businesses.  This show will have a “green theme” and will highlight businesses that offer environmental products.  Free admission. Time:  Fri. & Sat. 10:00 am – 7:00 pm / Sun. 10:00 am – 5:00 pm Location:  Del Mar Fairgrounds, O’Brien Hall & Activity Center For more information visit www.delmarhomeshow.net

January 28, 2nd Annual Stephen Strasburg 5K Walk & Fun Run with Tony Gwynn A family-friendly event that will include games and fun for everyone.  By registering for this event you will receive an all-inclusive package featuring autographs, tickets, t-shirt and more.  After the walk/fun run there will be lots of activities for all ages.  Live music, food court, Kids Fun Zone and more. Time:  Start time @ 8:25 am Location:  Tony Gwynn Stadium, San Diego State University For more information visit www.strasburg5k.com

January 29, Bridal Bazaar At the January Bridal Bazaar there will be thousands of wedding ideas, fashions, products and services…all in one place.  You’ll meet more than 300 of San Diego’s most trusted wedding professionals offering everything you need to make your wedding extraordinary. Time:  10:00 am – 4:00 pm Location:  San Diego Convention Center, Halls E & F, 111 West Harbor Dr. For more information visit www.bridalbazaar.com