Easter is just days away, and there are lots of fun things to do in North San Diego for the entire family! Here are a few of the highlights:

Carlsbad EGGstravaganza: On Saturday, April 7, this annual celebration will be held at Poinsettia Park from 10:00-1:00. There will be a fun zone with lots of games, food, music and activities, a summer day camp expo, and of course, an egg hunt. It’s great fun for the whole family. For more information click the city website, or call 760-434-2843. Tickets and Fun Zone wristbands are available at Calavera Hills, Harding and Stagecoach Community Centers.

GIA Egg-stravaganza: The Gemological Institute of America in Carlsbad is hosting an Egg-stravaganza of a different, shiny sort. Stop by on Thursday, April 5th all day to see their rare collection of eggs, made from minerals and gems, a collection that has never been on display and has been in collection for 40 years. The exhibit runs through the end of the year. For more information and for directions click  here.

San Diego Botanic Garden Spring Party. Come on over on Saturday, April 7 from 10:00-11:30, or 11:30-1:00 and enjoy the Spring garden party at our amazing Botanic Garden. There is a limit of 50 children per party, and tickets are $12-15 per child, so make sure to check the website to see if there is still room for your child.

Birch Aquarium Eggs-travaganza: Stop by the beautiful Birch Aquarium in La Jolla April 4-7 from 11:00-3:00 to see ocean creatures at this special time of year when they are hatched/born. There are lots of hands-on activities for participants. Visit the website  for more information.

Encinitas Easter Egg Hunt: Come join in the fun in this other favorite egg hunt, which takes place Saturday, April 5th from 10:00-1:00 at Ecke Sports Park. For more information and directions call 760-633-2740.

More Egg Hunts Across North County on Saturday, April 7:

Del Mar

Oceanside

San Marcos & San Elijo Hills

Cardiff by the Sea: Call 760-633-2740 for information

Solana Beach Call 858-720-2453

Carmel Valley: Call 858-552-1616

One of the biggest frustrations in my work is dealing with short sale lenders. With all the recent claims that these lenders are going to embrace short sales and make them quicker, the reality is that is not happening. Why is this so? Your guess is as good as mine, but let’s look at some simple ways the banks could improve on short sale response times, saving everyone aggravation and getting more homes sold, which of course helps the real estate market.

Time frames/mandatory check in times with agents on files. We need to make the short sale process more streamlined. There should be time frames established for each task, including response times. The negotiator for the bank should have daily updates for the agents on status, and be made to comply with the time frames. In a dream world every lender would have to follow the same protocol, which would make short sales easier to understand and close.

Assign one negotiator/closer to each file. One negotiator should be assigned by the bank to the file from the start, regardless of whether the bank uses an electronic system like Equator. The negotiator can then at least be familiar with the file to some extent, from reading his/her notes. Once a task is completed and the file needs to move up the chain of command for signatures, the assigned negotiator should be in contact with the higher-up, and remain actively involved with the file – that way we know the status and do not have to track down who actually has the file. Again, deadlines must be adhered to. I am tired of it taking 3-4 weeks to get a signature – if everything has been approved why does it take so long to sign off? This is ridiculous.

Make electronic systems more flexible. Some systems, like Equator, are great for keeping track of documents and progress. But these systems need to be maintained. When your file is full, oftentimes you are unable to leave further messages for the negotiator, and of course this is the only way you are supposed to contact them. These systems need to be maintained daily, and if they get to a full status they need to be archived so more messages can be input to the file.

Strict time frames for investor-lender communication. One of the most difficult aspects of short sale approval is that while the lender may actually be quick to respond, the investor (the one who actually holds the note, as opposed to the bank/servicer) often takes a long time to approve (and this is required for escrow to be opened). This problem has caused many short sales to fall apart after months of waiting and negotiating, even after the servicing bank says the sale looks good. Investor banks need to establish communication guidelines with the servicers, and stick to them.

Sadly, until these lenders decide to actively do something to  make these sales more streamlined, there is nothing we agents can do. I would love for the bank executives in charge of the loss mitigation programs to have a big press conference, where real estate agents could attend and ask questions…there are so many I can think of. But it would be fascinating to hear the answers. The unfortunate thing is, I don’t believe they even understand why they can’t get these sales closed faster, and they probably have no idea what goes on in reality. Well, at least we can always hope.

Home prices are rising and have been doing so for the last three months.  According to Standard and Poor’s newest Case-Shiller index report, prices have actually showed a decline, but that fact has been disputed by other reports. In North San Diego, I agree that prices seem to be rising and market times, not including short sales, are decreasing.

The discrepancy between the Case-Shiller report and other reports that have studied markets across the country is that the other reports focus on when contracts are signed – it uses the prices agreed upon at that time, even though it could be months until the properties close escrow.  Case-Shiller uses the prices reflected at the close of escrow, so there is quite a bit of lag time, up to several months, which skews the results.

Market Trends: The general consensus is that if you focus on what is trending, rather than waiting until close of escrow down the road, you get a clearer picture of price increase. Of course, there is the possibility that some of these sales may not close escrow, or may not appraise at the agreed price, but there is still a valid argument that focusing on what people are WILLING to pay and do get into contract for is a more accurate measure of hyper-local market analyses.

North San Diego: From a personal standpoint, I agree that prices seem to be increasing in the North San Diego market. We are seeing a lot of multiple offer situations, especially in the lower price ranges (under $400,000) across the county. Also apparent is that that the days on market time seems to be decreasing. In Carlsbad alone the average market time (for all four zip codes combined) for detached homes is 76 days, but if you scroll through all the pending listings you will notice many that sold in under a week. For attached homes in all four Carlsbad zip codes the average market time is 84 days, but again, you will notice a handful of properties that went into pending status quickly.

Sales Time Trends and Short Sales: Another trend I am seeing is that short sales contracts are being presented and accepted faster, especially in the under-$400,000 price range, with both attached and detached homes. These sales go into contingent status (meaning an offer has been signed and accepted by the seller pending approval by the short sale lender(s)) much quicker these days, but the market times are longer because the parties await short sale lender approval. The wait time, which can take months, throws off the market time numbers and makes them longer, so that has to be considered when looking at the sale times.

All in all the news is positive that the market here in San Diego is improving,which is great news for homeowners and buyers alike. According to Altos Research, the statistics indicate that the tables have turned slightly in the condo market, making it a seller’s market for the first time in a long time; the detached home market is still a buyer’s market. Hopefully the road ahead will continue to bring us closer to a more “normal” market.

Please feel free to contact me if you would like any detailed market reports and statistics sent to you, and I will be happy to do so. Send your request to Rachel@LaMarRealEstate.org.

With the onslaught of social media and the digital age many people, myself included, lament the loss of humanization – that personal touch, face-to-face contact, handwritten notes and handshakes or hugs. In the interest of doing things faster and getting more accomplished in a shorter time, we tend to overlook the most important part of relationships, the things that make us stand out, seem more “real,” helpful and caring.

Humans need to feel appreciated, and if you are appreciated in your business you will be successful. Those who are appreciated are those who go beyond the norm – making sure their clients are satisfied, being available, moving around schedules to accommodate, and most importantly, listening and saying “thank you.”

We need to show people we appreciate them, whether it is our dry cleaner, the driver who let’s you in front of them, your client or anyone else. Saying “thank you” goes a long way.

One of the best books I read on the topic was The Thank You Economy, by Gary Vaynerchuk. Gary talks about how we can use technology and social media, and still thank our customers and colleagues with a personal touch. If you have not read it and you are in any kind of business, I highly recommend it. He truly understands that business requires a human element, and he shows how you can use technology to your advantage and the advantage of your clients.

So next time someone needs something from you, take a moment to help them, and do it with a smile on your face no matter how busy you are. Most importantly, thank them when you are finished. Thank them for choosing to call you, for asking for your help, for working with you. Remember, there are others out there they could have chosen, but they contacted you. If you are thankful, not only will it pay off in the long run, but it will make you feel amazing.

Lastly, please teach this important lesson to your children. They need to understand the power of gratitude (sadly, many do not). Thank you for reading my blog!

“A thankful heart is not only the greatest virtue, but the parent of all other virtues.”
Cicero

“You simply will not be the same person two months from now after consciously giving thanks each day for the abundance that exists in your life. And you will have set in motion an ancient spiritual law: the more you have and are grateful for, the more will be given you.”
Sarah Ban Breathnach

There has been a great deal of real estate news making headlines lately, so if you want the latest scoop here you go:

1.  Bank of America is about to launch deed for lease program. After much controversy over this type of program, it seems B of A is going to jump into the deed for lease program arena. The program will target underwater homeowners, who are in danger of foreclosure, and will provide an alternative that allows them to stay in their homes: the homeowner turns over the deed to the property, and in turn gets to rent the property back as a tenant, at current market rates. The former homeowners would be given one year leases with options to renew. There are many questions as to whether this program will work, and whether it is good for the housing market. We will just have to wait and see. Stay tuned for more on this topic.

2.  Bank of America is offering principal reductions up to $100,000. Sound too good to be true? It may well be – the requirements are very specific and do not apply to Fannie and Freddie loans. Your loan has to have originated with Countrywide AND you have to have been 60 days delinquent as of January 31, 2012. For more information click here.

3.  New study finds buying is cheaper than renting in 98/100 major U.S. cities. According to a study by Trulia, it is more cost-effective to buy rather than rent in many places. This is due mostly in part to the rising rental rates and the flat housing prices – combine that with the extremely low interest rates which make now a great time to buy. Buying rather than renting can also avoid other potential headaches, such as finding properties to rent (a big problem in my area), or the surprise of a landlord facing foreclosure. For more details on the report click here.

4.  Best February for home sales in 5 years. Yes, last month was the best February for resale homes of the last 5, according to the National Association of Realtors. Combined with a nice sale number in January, the year seems to be off to the best start since 2007. Hopefully this good news will continue.

5. Assets of 5 California mortgage companies are frozen by federal court. This came after investigations were opened against five California mortgage companies for fraud in scamming homeowners facing foreclosure. All the companies were owned by Sameer Lakhany, who apparently charged customers up to $10,000 for legal advice and forensic audits, encouraging them to join lawsuits against their lenders for fraud.

6.  The blame game – are you surprised? The FHFA (Federal Housing Finance Agency) is claiming that the lengthy foreclosure timelines are the fault of state laws. These laws have been enacted by different states in order to protect homeowners, but the FHFA claims they are instead delaying foreclosures, which hurts neighborhoods and the homeowners in the long run. What do you think?

Thank you to Roxanne Kelemen, with Advantage Title for the above information!

There is a lot going on in the short sale and foreclosure arenas, and much of it may effect buyers, sellers and underwater borrowers. Here is the latest news:

Short Sales: Will They Soon be Shorter? There has been talk about making short sales shorter – not a new topic of course but this time the talk comes down from the Feds. The latest is that they want to make short sales more reliable as far as timing. The guidelines will only apply to Fannie Mae and Freddie Mac loans, and the full plan will be announced September 30.

Here are some of the highlights, according to the California Association of Realtors (CAR):

• Second liens: The plan entails better standardized rules between Fannie and Freddie regarding second liens and how they are to be dealt with (of course, there is no elaboration here). There is also a plan to set fixed amounts so that banks will know in advance how much they can expect to collect in a short sale. If there is no guessing and haggling with the first lender and/or the buyers and sellers to come up with an agreeable number, the second lender will be more likely to acquiesce to the short sale.

• Mortgage Insurers: The idea here is to prevent mortgage insurers from dragging out short sales. Rules will be introduced that prevent their ability to do so (via timelines), which is one of the causes of breakdowns in short sale negotiations.

• Mandatory Timelines: While there has been no information on what these might be or how they will be enforced, this is the crux of the short sale approval problem – if we can establish timelines in which a lender must respond, short sales definitely will become shorter.

• Valuation Problems: Another big problem in getting short sales accepted is valuation – there is a push to get lenders to take steps to get better property valuations, and to disclose the lowest price they will accept on a short sale property. I for one feel that lenders should eliminate agent BPOs and rely on local appraisers to come up with these numbers – I have had bad BPOs and bad appraisals almost ruin transactions.

Changes in Settlement Structure for First and Secondary Lien Holders: Second lien holders tend to get the short end of the stick when negotiating short sales, and usually walk away with very little money toward the debt that was owed. First lien holders, on the other hand, have more power in negotiations with the seller and tend to far far better, thus creating problems where subsequent lien holders refuse to settle, which of course can cause short sale approval to take a very long time or not happen at all. A new plan proposes the first and second lien holders share equally in the losses through the short sale settlement.

Banks are Overvaluing Homes, Making Foreclosures Worse: A recent article in the Huffington Post last week stated that banks are not making proper valuations on distressed properties, which in turn makes it less likely homeowners can get loan modifications, sending more properties to foreclosure. Using proper valuation methods to come up with correct numbers could prevent more foreclosures, allow more short sales and auction sales to third parties, and also allow for the possibility of more loan modifications.

Foreclosures are Down from a Year Ago, but on the Rise: Foreclosures are down from the same time last year, but are up from the previous month. Typically foreclosures slow down during the holiday season, and combined with the robo-signing settlement this could be why their numbers went down at the end of the year and into 2012. However, some say the declining numbers show progress in the mortgage industry…hmmm, what do you think? For statistics on specific states and more information on foreclosure numbers you can read this article from DSNews.

We don’t see too many probate sales out there, but they do exist. Oftentimes buyers, and many agents as well, do not understand their nature. The sales and paperwork process are different from traditional sales, and there are other caveats, but if you do your research buying a home via probate could be a great investment. Let’s look at the probate sale:

Defined: A probate sale occurs when a homeowner dies without a will, meaning they have not bequeathed their property to another. The state thus has to sell the property through the court, and wants the best possible price.

Court Confirmation: Most probate sales have to be approved by the court after being accepted by the parties (much like short sales have to be approved by the short sale lenders). In California, if the estate representative is given full power to sell the property under the Independent Administration of Estates Act (IAEA), it could bypass the need for court approval of the sale. If the representative has only limited powers, then a court confirmation is required.

Offer process: The offer process on a probate sale property is very different than any you have likely encountered. Once the buyer makes an offer and it is accepted by the estate representative, a petition is filed with the court for review (assuming it needs to be approved by the court). Note that the buyer must remove all contingencies before the petition is filed. Usually there is a hearing within 20-40 days from the petition date. Here is where it gets tricky.

During this time, the following events will occur:

• The buyer must deposit 10% of the purchase price before or on the date of the court hearing

• The court will advertise the accepted price for a certain period of time in a local paper, encouraging other bids. There are restrictions on overbid amounts (in California, the standard is to raise the offer from the accepted price by 5% plus $500), and the court will decide on the final increments on overbids.

Court Hearing: All parties who are interested in purchasing the property must come to the court hearing, which is conducted like an auction. Other interested parties must be able to present an unconditional offer (one with no loan or inspection contingencies) and present a check to the court for 10% of the purchase price. If the court accepts a higher offer the original buyer gets her/his 10% deposit back. If the original buyer’s offer is accepted the 10% deposit is applied to the purchase price and becomes nonrefundable.

The accepted purchase price must be no less than 90% of the appraised value of the property.

Caveats: Obviously, a probate sale may not be right for every buyer, due to the fact that the “accepted” offer is not a guaranteed sale, and because there is a long waiting period. If the buyer defaults after the offer is accepted s/he risks losing the deposit. Most importantly, the buyer should fork out money at the get-go for a home inspection, BEFORE writing an offer. This is obviously risky, because they may not end up as the purchaser, but it is definitely important to know any defects with the property since no seller disclosures will be provided.

If you do your homework, don’t have to move in a hurry, and have a good agent on your side a probate sale could be right for you.

If you have ever considered a short sale, or would like to learn more about how they work, I have the seminar for you…and it’s free! Shortsaleopedia and I have collaborated to hold monthly seminars to help homeowners in San Diego, and the next one is this Wednesday, March 14, from 6:00-8:00 p.m. at the Carlsbad Dove Library.

I have put together a phenomenal panel of experts – from real estate and credit attorneys to a CPA, short sale bank negotiator, mortgage professional, escrow and title professionals, who specialize and are trained in short sales. We will teach you all about the intricacies and ramifications (legal, credit and tax) of short sales, programs that may be available to help you, and how current and upcoming laws could make your sale easier or more challenging.

Please join me and my wonderful expert panel this Wednesday. Come learn, ask questions and get informed. You can sign up here:  http://shortsaleopedia.com/events/event-san-diego-shortsaleopedia-seminar/ The Carlsbad Dove (main) library is located at 1775 Dove Lane, Carlsbad, just off El Camino Real North of Aviara Parkway.  If you are investigating options for distressed property, this event will be valuable.