It’s Still a Good Time to Buy a Home

Altadena Home, Woodlands Neighborhood

If owning a home is right for your family, you have the down payment, and ability to qualify for a mortgage, then there is no doubt, it’s a good time to buy.

For those cautious buyers who are analytical in their approach to buying, the biggest question today is whether to buy now, or wait until the housing prices drop lower or  hit “bottom”.

An important issue to consider is:  What is the cost tradeoff of waiting to buy a home at a lower price, but at a higher interest rates?  Information indicates that interest rates are going up and will continue to do so.

Interest rates are currently around 4.75% for a 30-year fixed mortgage.    A few short months ago, the rates were at 3.75% (4th quarter of 2010).   That 1% interest increase represents a $263.00 per month increase in mortgage payments on a $450,000.00 mortgage.

If we also assume that the house price dropped 1% thereby resulting in a lower mortgage of  $445,500 (instead of $450k), and the interest rate still went up 1% to  4.75% , your monthly payments would still be $237.0  more than if you had bought at a higher price (1% higher) and lower interest rate (1% lower).    By buying now you can not only save a significant amount of money on your monthly mortgage payments, but you can pay yourself for significantly increasing your standard of living.

Economist Emily Trinks believes waiting to buy at cheaper home prices can result in costing you more due to the higher interest rates.   To help home buyers to visualize the trade-offs between lower purchase prices and higher mortgage interest rates,  Ms. Tinks provides a chart based on the current  4.7% rate.   The chart shows percentage by which your monthly mortgage payment will change as a result of movements in both home prices and mortgage rates.

For more information about this trade-off, ask you Realtor.  If you don’t have one, call, text or e-mail me to learn more about this trade-off as well as the many other cost-saving programs we offer our Buyer

New Law: No Deficiency Judgments on 1st Mortgages Allowed in Short Sales

Altadena Home

Effective January 1, 2011, the short sale of a dwelling (4 units of less) prohibits a deficiency judgment on a note secured by a first trust deed.  C.C.P.   580e , (Senate Bill 931). *

Although this new law will be helpful in facilitating short sales,  the law does not go far enough, according to the California of Association of Realtors (CAR).

CAR had urged legislators to go further and prohibit the junior lien holders from seeking a deficiency judgments as well.   It is often junior lien holder(s) who interfere with a short sale by refusing to release the right to pursue  a deficiency judgment.

This deficiency judgment prohibition on first deeds of trust applies to a broad category of  dwellings.   The new law, codified at California Code of Civil Procedure section 580e applies to:

• 1 to 4 Residential Units
• Cash-Out Refinanced loans
• Non-Owner Occupied Homes
• Second Homes
• Vacation Homes

*C.C.P. section 580e has been amended to include all lienholders, senior and junior lienholders, pursuant to SB 458 sponsored by the California Association of Realtors and which became effective on 7-15-11.

 

Mary K. Lenahan, JD, Realtor
Beautiful-California-Homes-For-Sale.com
626) 798.9050 / Cell*Text: 626.226.6056
MKLenahan@yahoo.com
Dilbeck Real Estate Real Living
Short Sales & Probate Real EstateTransactions

DRE 01867737

History and Family Fun: 22nd Annual Bungalow Heaven Tour April 10, 2011

Bungalow Heaven Home, Pasadena CA

 

Bungalow Heaven is a charming historical neighborhood in Pasadena, California.    Sunset Magazine called  it  “The Best in the West.”

Among Bungalow Heaven’s 800 homes built from the 1900s to the 1930s  are some of the best examples of the historic American Craftsman Movement.   Bungalow Heaven was entered in the list of National Register of Historic Places in 2008.

On April 10, 2011 from 10 a.m. to 4 p.m. Bungalow Heaven’s Neighborhood Association invites you to their neighborhood for a taste of history, good food, and music.Enjoy a walking tour of selected homes in the neighborhood as well a close up view of life during the early days of Bungalow Heaven at the Living History Home featuring costumed actors.

At the birth of this neighborhood, when climate, opportunity, and trolley lines brought a population boom to Pasadena, a Craftsman bungalow could be bought for around $2,500, or built from a kit for even less. The late-19th century, post-Victorian American Craftsman Movement represented a radically different architectural, design and lifestyle philosophy following the industrial revolution, rejecting that era’s Victorian ornateness and “scientific” opulence.

The movement prized simplicity and integrity of design and utility, while focusing on the value of natural harmony and materials in the finished construction.Tickets are $18.00 in advance or $20.00 the day of. For more information see:  http://www.bungalowheaven.org/

For a  free list of homes for sale in Bungalow Heaven as well information on the many cost-saving programs such as  our exciting Buyer Programs, contact the Lenahan Realty Group.

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Mary K. Lenahan, JD, Realtor
Beautiful-California-Homes-For-Sale.com
SEARCH THE MLS HERE
(626) 798.9050
Mary.Lenahan@Dilbeck.com
Cell/Text: 626.226.6056
Your Business & Referrals Are Appreciated!
DRE 01867737

New CA Foreclosure Law: Minor Tweak in Time allowed to file Notice of Sale

Under the prior law governing trustee sales, the Notice of Sale could not be filed until at least 3 months after the filing of the Notice of Default (NOD).

 This new law permits the filing of a Notice of Sale up to 5 days before the expiration of  the 3-month period so long as the actual date of the sale is no earlier than 3 months and 20 days after the filing of the NOD.

Amends Sections 2924 and 2924c of the CA Civil Code

 

Mary K. Lenahan, JD, Realtor
Beautiful-California-Homes-For-Sale.com
SEARCH THE MLS HERE
(626) 798.9050
Mary.Lenahan@Dilbeck.com
Cell/Text: 626.226.6056
Your Business & Referrals Are Appreciated!
DRE 01867737

 

New Law: Energy Efficient Homes Encouraged: CA Home Energy Rating System (HERS)

Janes Village area home, Altadena CA

A new law authorizes a home inspection to include, if requested by the client, a Home Energy Rating System (HERS) Program energy audit.  A HERS inspection helps homeowners to determine the energy efficiency of their home and ways to improve it.

The California Association of Realtors (CAR) has a rebate program for buyers who perform HERS audits during the home inspection.  Information on CARs energy audit program with rebates up to $250.00

For more information about the California Energy Commission’s regulations, standards, and approved HERS provider, go the CA Energy Commission Web Site.

Realtors are encouraged to notify homebuyers of the opportunity for a HERS inspection and information of the program is included in CARS’s new combined Environmental Hazards Booklet.

Added Sections 7199.5 and 7199.7 to the CA Business and Professions Code.

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Mary K. Lenahan, JD, Realtor
Beautiful-California-Homes-For-Sale.com
(626) 798.9050
Mary.Lenahan@Dilbeck.com
Cell/Text: 626.226.6056
DRE 01867737

New CA Law: Expedited Jury Trial: 8 Jurors; 3 hours Per Side to Present Case

California State Capital

The California Expedited Jury Trial Act establishes procedures for expedited trials including a jury of 8 jurors or fewer and no alternates, a limit of 3 peremptory challenges for each side, and a limit of 3 hours for each side to present its case.

The parties in a civil action who agree to Expedited Jury Trial Act are subject the Act’s procedures, unless the parties agree otherwise, as permitted under C.C.P. section 630.03(e)(1)(E).

The Expedited Jury Trial Act provides that a vote of 6 of the 8 jurors is necessary for a verdict.   The verdict is binding.   The parties waive all rights to appeal subject to the verdict being adjusted pursuant to any high/low agreement.

The Act also provides that participants agree to waive any motions for directed verdicts, motions to set aside the verdict or any judgment rendered by the jury, or motions for a new trial on the basis of inadequate or excessive damages.

The court shall not set aside any verdict or any judgment, shall not direct that judgment be entered in favor of a party entitled to judgment as a matter of law, and shall not order a new trial, except on the grounds stated in Section 630.09.

Added by CA Code of Civil Procedure, Sections 630.01 through 630.12.

Assembly Bill 2284 

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Mary K. Lenahan, JD, Realtor
Beautiful-California-Homes-For-Sale.com
SEARCH THE MLS HERE
(626) 798.9050
Mary.Lenahan@Dilbeck.com
Cell/Text: 626.226.6056
Your Business & Referrals Are Appreciated!
DRE 01867737

New Law: Carbon Monoxide Detectors Required in Dwellings Effective 7-1-11

Caron Monoxide cannot be detected by sight or smell and is the leading cause of accidental death by poison.

Effective 7-1-11 carbon monoxide detectors must be installed in single family dwellings.   All other dwellings must have carbon monoxide detectors installed by January 1, 2013.

Owners of residential rental property must also comply with this law.  Tenants are responsible to notify the owner of an inoperable or deficient carbon monoxide device.

The penalty for violating the law is  a maximum fine of $200 for each offense.

The law is not a “point of sale” requirement.   In other words, the seller does not have to install a carbon monoxide detector in order to sell the home in contrast to, for example, smoke detectors and the water heater bracing.  The latter two items are both “point of sale” requirements, and thus a seller must install smoke detector(s) and brace of the water heater in order to sell the home.

Although a carbon monoxide detector is not a point of sale requirement, a seller must disclose the lack of a carbon monoxide detector to the buyer in a written disclosure contained on the recently amended California Association of Realtors (CAR’s) Transfer Disclosure Statement form (“TDS”).

CAR’s TDS disclosure form been amended to allow Sellers to check a box to indicate if a carbon monoxide detector is present in the home or not.  Another recent change to the CAR’s TDS form is that it  incorporates into it two previous separate disclosure forms: 1) Smoke Detectors and  2) Water Heater bracing.

Amends Sections 1102.6 and 1102.6d of the CA Civil Code and adds Sections 13260, 13261, 13262, 13263, 17926, 17926.1, and 17926.2 to the CA Health and Safety Code.

Mary K. Lenahan, JD, Realtor
Beautiful-California-Homes-For-Sale.com
626) 798.9050 / Cell*Text: 626.226.6056
MKLenahan@yahoo.com
Dilbeck Real Estate Real Living
Short Sales and Probate & Trust Real EstateTransactions

DRE 01867737