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Hello Friends,

Earlier this month, the Department of Housing and Urban Development (HUD) issued guidance on how fair housing laws apply to those with criminal records. Specifically, the HUD stated that a landlord or property manager who imposes a blanket refusal to rent to any person with any criminal conviction record – no matter when the conviction occurred, what the underlying conduct entailed, or what the convicted person has done since then — may violate the Fair Housing Act. Thus, if you are a property manager or own rental property, it is urged that you to familiarize yourself with the guidelines.

It goes without saying that a landlord or property manager must treat everyone equally. Even if a screening policy involving criminal convictions is maintained, it can never be used as a pretext for unequal treatment. If a landlord or property manager refuses to rent to a person for certain convictions, then the landlord or property manager should not rent to anyone similarly convicted. View C.A.R.’s Realegal® on the HUD guidelines.

This was an announcement from Pat “Ziggy” Zicarelli who is the 2016 President of the California Association of Relators.

If you have any other questions, please feel free to contact us at katiebrealty at gmail . com. Thank you!

Sincerely,

Katie Bayliss, Esq.
Real Estate Broker/Agent and Real Estate Attorney
Specializing in real estate buying and selling issues and wills and trusts

As a real estate broker in California, I receive regular updates from the California Association of Realtors (CARS) about the housing market. This week I was shocked to see what was in my inbox. CARS has been fighting a battle with the Federal Housing Finance Administration (FHFA) and Fannie Mae about selling off their REO homes in bulk sales and to undisclosed investors at deep discounts. The issue is with the sale of about 500 Fannie Mae-owned foreclosed homes in the Los Angeles and Inland Empire to undisclosed institutional investors, it negatively affects the California’s state housing market and will burden taxpayers with Fannie Mae’s loss. (CARS Newsletter). Moreover, their actions are affecting markets that have actually seen the increase of sales of homes and price stabilization over the last three years. (CARS Newsletter).

If you have looked into purchasing a home lately, you will know that these areas in the southern California area are experiencing a strong housing/buyer demand with very little homes for people to purchase from. The low availability of actual homes to purchase with the high demand to buy keeps housing prices high (lower prices than we have seen in the past but keeping the prices high helps current home owners who have purchased in the past when housing prices were even higher). With the bulk REO sales, it is predicted that the prices of the houses will fall dramatically due to the increase supply of homes. Currently, Fannie Mae is slowly releasing their REOs and I believe they should continue to do so. Their bulk sale will change our already ever changing real estate market. It will likely be a benefit to anyone who would like to purchase a home within the next few years but it will affect so many who have purchased already. It will perhaps even affect those who just purchased recently.

As an economics major in undergrad and an attorney, I am still baffled at the fact that California congressional leaders cannot comprehend some of the basic supply and demand principles that are fully explained in detailed to them and the consequences of their actions. Perhaps the leaders have another insight that we just do not see. But as of now, even as an attorney, one can feel helpless.

Katie Bayliss, Esq.
Katie B Realty

The Federal Housing Finance Agency laid out new rules aimed at speeding up the short sale process, a move that could keep many homes from falling into foreclosure.

In a short sale, the bank that holds the mortgage must agree to accept a price for the home that is less than what is owed. Even though short sales are considered a better alternative to foreclosure, banks often take so long to review and approve short sales that the deal falls apart and homes get repossessed.

“Delays in approving short sale requests remain a significant challenge for realtors and consumers and often results in canceled contracts and the property going into foreclosure,” said Moe Veissi, president of the National Association of Realtors.

In California, which accounts for a disproportionate number of the nation’s short sales, 60% of short sale offers failed to result in a closed sale last year, according to a California Association of Realtors member survey

The organization attributed much of the closing problems to extended lender response times. Some agents said that lenders even foreclosed on the homes before a short sale could close.

To help avoid the trend from continuing, the Federal Housing Finance Agency, which oversees Fannie Mae (FNMA, Fortune 500) and Freddie Mac (FRE), laid out rules that will require lenders to review and respond to short sale requests within 30 days and make a final decision within 60 days. The lender is also required to provide weekly status updates to the borrower if the offer is still under review after 30 days.

The new guidelines, which go into effect on June 1, can prove to be beneficial for all of the parties involved.

For lenders, it could mean saving a distressed property from falling into foreclosure, saving them tens of thousands of dollars in lost property value and costs.

~ CNNMoney

For Purchase

Asking prices rose 1.4 percent nationally in March compared with the previous quarter, according to Trulia’s Price Monitor.  On a month-over-month comparison, asking prices increased 0.9 percent in March and 0.6 percent in February.

Throughout 2011, asking prices rose slightly in several months of the year, but never more than 0.2 percent in a month. Asking prices in March were 0.7 percent below their level one year earlier.

Rentals

Asking rents rose over the past year in almost all large metro areas included in the Trulia Rent Monitor. In the largest metros, rents rose 6.2 percent in New York and 6.1 percent in Chicago, but only 0.6 percent in Los Angeles. Rents rose strongly in Miami (12.1 percent) and Denver (9.9 percent), which also experienced large asking price increases. Meanwhile, rental affordability declined in places where rents rose while prices fell, most notably in San Francisco (rents up 11.1 percent), Seattle (9.7 percent), San Jose (9.4 percent), and Boston (9.2 percent).

~ Trulia

We have to say cheers to the great news! The real estate market is picking up and it’s a perfect time for the market to turn around! This means if you have been wanting to sell your home, do it soon since you can sell your house for more money! Let me know if you need my help. Contact me at katiebrealty at gmail.com! Thanks!

Consumer confidence rises this year! 2012 is a good time to buy!

Consumers May Prowl for Homes in 2012: Fannie Mae

A new Fannie Mae study suggests Americans are beginning to consider 2012 a good year to acquire a home.

The GSE released its March National Housing Survey of just over 1,000 Americans and found more citizens expect rents and home prices to increase in the coming months, making today a better time to purchase a residence. 

About 73% of those interviewed said buying a home today is a good idea, up from 70% in February. 

Thirty-seven percent of those interviewed believe prices will increase, which is up 5 percentage points since February and the highest point reached in more than a year.

About half of the respondents expect both home rentals and purchases will grow over the next 12 months. 

Consumers also are more confident about their own finances, with 44% believing their financial situations will get better in the near future.

“Conditions are coming together to encourage people to want to buy homes,” said Doug Duncan, vice president and chief economist of Fannie Mae. “Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”

Still, 58% of those surveyed believe the economy is still on the wrong track, with only 35% holding a more optimistic view of the nation’s economic situation. Twelve percent believe their financial situation will worsen, and 21% believe their income is now significantly higher than it was 12 months ago. 

 ~ HousingWire

This is a sweet deal that we love!!!!

Locking in peace of mind 

Mortgage rates are near historic lows, but they are rising, leading some borrowers to consider locking in their rate.  When borrowers lock in their interest rate, it freezes the terms of the loan while it is being processed, potentially saving borrowers thousands of dollars over the life of the mortgage.

Making sense of the story

• Locking in a rate may be especially important for those who are refinancing, where even a quarter of a percentage point could skew a borrower’s calculations and make a refinancing less financially desirable.

• Rate locks can provide buyers with some peace of mind, not to mention one less thing to think about in an otherwise onerous application process.

• Lenders typically will give loan rate guarantee agreements when a borrower has a purchase agreement, but a few will provide them to those who are preapproved for a mortgage.

• The cost of reserving an interest rate depends both on the duration of the lock and the amount of the loan.  The longer the lock, the more costly it is.  Most locks are for 30, 45, or 60 days, but some lenders will go as long as six months.

• Most lenders offer some version of a free lock, though it may be only for 30 days. Others charge points – or fractions thereof – based on the loan size, which could amount to several hundred dollars.  One point is equal to 1 percent of the loan amount.  Sometimes these charges are refundable at closing.

• Borrowers may want to skip a rate lock, or delay taking one, if they are unsure when their home purchase will close.

• Knowing how long to lock in a rate requires a clear picture of the mortgage process, and a good estimate from the lender on how long it will take to approve the loan and complete all the paperwork and other requirements. For some lenders handling refinancing, this can be 15 or 20 days; others take longer.

 ~ The New York Times

Did you know that…

In 2011 the Assessor’s office reviewed 305,000 properties and adjusted the value of 177,000 properties that were eligible for a tax value reduction. 

– Orange County Association of REALTORS®

So make sure you get your property reassessed this year so you can save money on your property taxes!

Katie Bayliss, Esq.
katiebrealty at gmail.com