2 Brokers Opens for Tomorrow 12/28/10

La City Short Sales will be holding a brokers open tomorrow 12/28/10, from 11am-2pm for the following properties:

7307 W 90TH ST

LOS ANGELES, CA

LP: $639,000

BR: 3.00
BA: 1.00
SF: 1683

Beautifully renovated west of Lincoln, Westchester home. This home has been tastefully redone throughout with hardwood floors, recessed lighting, plantation shutters, 2 woodburning fireplaces and many custom touches. Designer kitchen with custom maple cabinets, granite counters, ss appliances and separate laundry room. The expansive lushly landscaped rear yard with a hot tub and water fountains is like a private retreat. Great house, great price, huge lot, bring your discriminating clients. This is a Short Sale. Listing Agents are distress property specialist. Agents see private remarks for further details and showing instructions.
http://www.facebook.com/album.php?aid=348310&id=337134778760

4646 DON LORENZO DR #A, Los Angeles, CA 90008

LP: $199,000

BR: 2.00
BA: 2.00
SF: 1,705

Fantastic Deal and Great Location! You will fall in love with this well kept and upgraded condo featuring formal dinning and, living room. Upgrades include granite counter tops, stainless steel appliances, and pergo floors. This 2 bed/2 bath gem also has a spacious family room perfect for entertaining. The master suite has a walk-in closet, and a cozy fireplace. Direct 2-car garage, inside laundry, central air/heating, recessed lighting and a private balcony. Great parks in walking distance! This is a Short Sale. Listing Agents are distressed property specialist's. Agents see private remarks for further details and showing instructions.
http://www.facebook.com/album.php?aid=348085&id=337134778760

Thank you we hope to see you there!

In today's challenging Los Angeles real estate market, selecting the right real estate agent is crucial. It can make all the difference in the world. Whether you're planning on buying, selling, or you just have a question, feel free to call Toni Patillo. We service the Greater Los Angeles, the Westside, Beverly Hills, and more.

Toni Patillo & Associates
Broker Of Record l DRE#0313287
Keller Williams Realty Santa Monica
2701 Ocean Park Blvd., Ste. 140 • Santa Monica, CA 90405
Office (310) 482-2035 • Fax(424) 744-4148

Mortgage Rates Predicted to Stay Below 5% in 2011

With 30-year fixed mortgage rates hitting their lowest level since the 1950s in November 2010 at 4.17 percent, rates had nowhere to go but up. And up they did, with marked of nearly a half percent in a matter of weeks. However, for the last week in December, rates are again declining. So where does that leave us for 2011?

According to Freddie Mac’s Chief Economist Frank Nothaft, these long-term mortgage interest rates will stay below 5 percent throughout 2011.

“While some rise in fixed-rates is expected, 30-year fixed-rate loans are likely to remain below 5 percent throughout the year, and initial rates on 5/1 hybrid ARMs [adjustable-rate mortgages] will likely remain below 4 percent in 2011,” predicted Nothaft.

The Freddie Mac economist said home value weakness would continue in 2011, thanks largely to high inventory levels of for-sale homes and REO properties. Northaft predicts U.S. price indexes are very close to bottoming out and will finish doing so in the first half of 2011. From there, a gradual yet sustained recovery will take hold. This will make buyer affordability the best its been in decades and Northaft expects more first-time buyers will enter the market in 2011, resulting in more home sales for 2011 than happened in 2010.

Source: Short Sale Daily News

With buyer affordability the best it has been in several years, now is the time to buy! Lets work together to find you the home of your dreams!

In today's challenging Los Angeles real estate market, selecting the right real estate agent is crucial. It can make all the difference in the world. Whether you're planning on buying, selling, or you just have a question, feel free to call Toni Patillo. We service the Greater Los Angeles, the Westside, Beverly Hills, and more.

Toni Patillo & Associates
Broker Of Record l DRE#0313287
Keller Williams Realty Santa Monica
2701 Ocean Park Blvd., Ste. 140 • Santa Monica, CA 90405
Office (310) 482-2035 • Fax(424) 744-4148

5 Things You Need to Know When Short-Selling an Investment Property

As the market continues to drag on and owners are realizing their need to rent for a couple of years until the market comes back, it is affecting them in many ways. Most of these types of owners can’t afford the repairs and maintenance, the vacancy costs, and some are upside down every month if the rent is less than the monthly mortgage note. So, we are finding more and more owners who have been renting their homes are finally giving up and turning to us to help sell the property via short sale. The challenge with this is that most of the properties are tenant-occupied.

Here are five things you need to know in order to short-sell an investment property:

1. If you have a tenant in the property, you need to read the lease to determine if you can show the property. The tenant has the right to quiet enjoyment under landlord tenant law. This means the landlord can’t just put the property on the market and expect that the tenant will be OK with showing the property.

2. Most leases have a period of the last 60 days of the lease to show the property, so if you aren’t in that time period, you can terminate the lease and provide 60 days notice. This will provide you with the right to show the property to perspective tenants while still receiving income. Make sure you understand what is owed to the tenant for breaking your lease contract and factor that into the financial equation.

3. If you are using a professional property management firm, ask them for the total fees for breaking the management contract. Sometimes, if you use the management company to assist you with the transaction, they will lower your termination fees, but make sure you get an exact amount from them in writing.

4. The bank doesn’t like that the owner has been receiving rent on the property and not paying the note. You can expect that the bank will make you come to closing with some type of funds. What we have seen is typically two months rent as the expectation that the bank will want. However, be aware that it may be more.

5. If you are thinking about short-selling the property to an investor, you will need to handle the transaction with care. In this case, the new owner will want the tenant to stay in place. So, you have to make sure that the tenant feels comfortable with the transition. This is a lot easier said than done.

Source: http://shortsaledailynews.com/5-things-to-consider-when-short-selling-an-investment-property/

In today's challenging Los Angeles real estate market, selecting the right real estate agent is crucial. It can make all the difference in the world. Whether you're planning on buying, selling, or you just have a question, feel free to call Toni Patillo. We service the Greater Los Angeles, the Westside, Beverly Hills, and more.

Toni Patillo & Associates
Broker Of Record l DRE#0313287
Keller Williams Realty Santa Monica
2701 Ocean Park Blvd., Ste. 140 • Santa Monica, CA 90405
Office (310) 482-2035 • Fax(424) 744-4148

Showing Sunday 12/19 from 2-4 PM

La City Short Sales will have an open showing of 100 S. Doheny Dr. this Sunday 12/19 from 2-4 PM.

LP: $321,000

1 Bed

1.5 Bath

SPACIOUS 1-BED-1.5bath + Den floor plan with hardwood floors and smooth ceilings. Unit is located on the quite side of the building and overlooks lush grassy area and tennis court. This highly desirable full service building is located adjacent to Beverly Hills and The Beverly Center, Cedars Sinai and The Four Seasons. Building also features lushly landscaped pool & spa areas, tennis court, gym and 24 hour security guards. This is one of the few 1 bedroom units that come with 2 parking spaces. This is a Short Sale, Excellent Value – Agents see private remarks for more details. Listing Agents are Certified Pre-foreclosure Specialists.


In today's challenging Los Angeles real estate market, selecting the right real estate agent is crucial. It can make all the difference in the world. Whether you're planning on buying, selling, or you just have a question, feel free to call Toni Patillo. We service the Greater Los Angeles, the Westside, Beverly Hills, and more.

Toni Patillo & Associates
Broker Of Record l DRE#0313287
Keller Williams Realty Santa Monica
2701 Ocean Park Blvd., Ste. 140 • Santa Monica, CA 90405
Office (310) 482-2035 • Fax(424) 744-4148

Up to 23,000 condo projects could lose FHA eligibility in 2011

According to the National Association of Realtors, 23,000 condo projects are on the verge of losing their eligibility for FHA-guaranteed sales and refinancing after 2,200 projects have already lost eligibility.

The FHA set standards last year that require condominium projects that are FHA approved before 2007 to renew their approvals by December 7, 2010 and NAR projects roughly 25,000 have missed the cutoff date.

Given the staggering number of projects that did not renew, FHA extended the deadlines out to 2011 but the 2,200 projects with the oldest approvals became ineligible this month.

With so many projects being stripped of FHA eligibility, the condo market could look a little different in the coming year having taken this hit. It will be interesting to see at the end of next year how the number compares to the current 2,200 ineligible projects.

From AgentsGenius.com

In today's challenging Los Angeles real estate market, selecting the right real estate agent is crucial. It can make all the difference in the world. Whether you're planning on buying, selling, or you just have a question, feel free to call Toni Patillo. We service the Greater Los Angeles, the Westside, Beverly Hills, and more.

Toni Patillo & Associates
Broker Of Record l DRE#0313287
Keller Williams Realty Santa Monica
2701 Ocean Park Blvd., Ste. 140 • Santa Monica, CA 90405
Office (310) 482-2035 • Fax(424) 744-4148

1101 West Sepulveda Street, San Pedro 90731 ($299,000)

2 Bed/1 Bath

SF: 828

SPIT & POLISH WILL SPARKLE THIS VINTAGE COTTAGE & BIG YARD on a block which boasts some of the eras most charming homes. Upgrades: Kitchen w/ custom cabinetry, GRANITE countertops & separate food prep area. FULL Bathroom is bright & cheerful with upgrades & white tile. Current owner installed a new r...oof on house.Original Bungalow cabinetry & windows remain in the livingroom with HARDWOOD FLOORS.Each owner since 1918 has left their unique enhancement to this cozy home on a spacious LARGE LOT! How about a Brick Fired Outdoor Pizza Oven w/ spacious Outdoor Kitchen? Sit fireside 'round the outdoor firepit and need to use the John? yes, there's a gentlemen's private commode discreetly in the backyard, (go find it, no kidding!)Walk-in Basement has it's original swing open doors & glass window. Think Workspace & Storage!The Original 1918 garage was converted to a workroom,laundry, storage & space for a small car. Plenty of room to park cars on side long driveway & behind gate.

In today's challenging Los Angeles real estate market, selecting the right real estate agent is crucial. It can make all the difference in the world. Whether you're planning on buying, selling, or you just have a question, feel free to call Toni Patillo. We service the Greater Los Angeles, the Westside, Beverly Hills, and more.

Toni Patillo & Associates
Broker Of Record l DRE#0313287
Keller Williams Realty Santa Monica
2701 Ocean Park Blvd., Ste. 140 • Santa Monica, CA 90405
Office (310) 482-2035 • Fax(424) 744-4148

2011 Real Estate Market Outlook

Fannie Sees Positive Real Estate and Lending Market in 2011

The slowly recovering economy has led Fannie Mae to project an improved outlook for the real estate market next year.

According to the report, while the mortgage giant expects that home prices will finish 2010 down approximately 0.6 percent compared with last year, they should bounce back slightly in 2011 before rising more than 4 percent in 2012.

Low mortgage rates should also continue to bring appealing conditions for those interested in buying a home. Fannie Mae's forecast shows that the company predicts that the average interest rate for a 30-year fixed-rate mortgage will be 4.3 percent in 2011 and rise incrementally to 4.6 percent the following year.

"The pace of recovery will largely be determined by labor conditions. If hiring improves at a faster pace than expected, home sales will likely see a stronger gain in 2011 and vice versa," said Fannie Mae chief economist Doug Duncan.

The labor markets continue to be unsteady. While private employers added 151,000 jobs in October, the unemployment rate has remained steady at 9.6 percent.

From realestate.com

In today's challenging Los Angeles real estate market, selecting the right real estate agent is crucial. It can make all the difference in the world. Whether you're planning on buying, selling, or you just have a question, feel free to call Toni Patillo. We service the Greater Los Angeles, the Westside, Beverly Hills, and more.

Toni Patillo & Associates
Broker Of Record l DRE#0313287
Keller Williams Realty Santa Monica
2701 Ocean Park Blvd., Ste. 140 • Santa Monica, CA 90405
Office (310) 482-2035 • Fax(424) 744-4148

Mortgage Balance Delinqeuncy on the Rise

During the third quarter of this year, 2.7 percent of current mortgage balances transitioned into delinquency, according to new data from the Federal Reserve Bank of New York. That’s up from 2.6 percent that became newly delinquent in the second quarter.

Fed officials called the quarterly increase “slight” but noted that the rise follows a full year of declines in new delinquencies.

The New York Fed said it observed a similar pattern in the third quarter of 2009, which might suggest this is simply a seasonal effect, but the federal bank says it plans to “closely monitor” the development.

According to the New York Fed’s report, about 457,000 individuals received home foreclosure notices on their credit reports between July 1 and September 30, 2010. Officials say this represents a 5.5 percent decrease from the second quarter and a 6.4 percent drop from a year earlier.

The Fed says consumers are continuing to trim their debt. It’s a trend that has been evident for the previous seven quarters, though the pace of decline has slowed recently. Since peaking in the third quarter of 2008, nearly $1 trillion has been shaved from outstanding consumer debts, the federal bank reports.

Excluding the effects of defaults and charge-offs, available data show that non-mortgage debt fell for the first time since at least 2000. Also, net mortgage debt paydowns, which began in 2008, reached nearly $140 billion by year-end 2009.

The Fed says “these unique findings suggest that consumers have been actively reducing their debts, and not just by defaulting.”

“Consumer debt is declining but only part of the reduction is attributable to defaults and charge-offs,” said Donghoon Lee, senior economist in the Research and Statistics Group at the New York Fed. “Americans are borrowing less and paying off more debt than in the recent past. This change, which we continue to study carefully, can be a result of both tightening credit standards and voluntary changes in saving behavior.”

The fact that consumers are reducing their debt with payments rather than non-payments would seem to be a good thing. But analysts say because outstanding debt balances are shrinking, it signals consumers aren’t spending – a bad sign for an economy to struggling to gain its footing.

With this report, for the first time, the New York Fed addressed the question of how the decline in overall consumer debt has been achieved. They correlated it to a “sharp reversal” in household cash flow from debt, indicating a decrease in available funds for consumption.

According to newly available data through year-end 2009, the payoff of debt by consumers reduced their cash flow by about $150 billion, whereas between 2000 and 2007, borrowing had contributed more than $300 billion annually to consumers’ cash flow, the Fed explained in its report.

Moratorium on Bank of America Foreclosures

Here is an article I read today on DSnews.com, Bank of America is now the fourth bank nationwide to place a moratorium on their foreclosures:


UPDATED to include PNC Financial’s reported foreclosure freeze and impending joint investigation of 40 states into servicers’ foreclosure procedures. The nation’s largest mortgage lender, Bank of America announced Friday that it is expanding its foreclosure moratorium from 23 states, as announced by the bank last week, to include all 50 states. The company explained in a statement, “Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed.” The company added, “Our ongoing assessment shows the basis for foreclosure decisions is accurate. We continue to serve the interests of our customers, investors, and communities. Providing solutions for distressed homeowners remains our primary focus.” BofA called for a halt on foreclosures in certain states when evidence surfaced that its internal staff may not have followed the letter of the law in reviewing and processing case paperwork. Such actions were spelled out in black and white when the Associated Press uncovered court documents with testimony from one of BofA’s top executives at a bankruptcy hearing in February. The exec admitted that she signed off on 7,000 to 8,000 foreclosure documents a month without even reading them or verifying their legitimacy. Incidences of so-called “robo-signers” that have been blindly rubber-stamping approvals of foreclosure actions because of the sheer volume of cases landing on their desks has led to foreclosure suspensions by now, three other big lenders – and some in the industry warn that the problem could be even more widespread. On September 20th, GMAC Mortgage was the first to halt foreclosures in 23 judicial states due to what it called an “internal procedural error.” JPMorgan Chase followed suit on September 30th. PNC Financial reportedly notified its industry partners that it is suspending foreclosures for 30 days in the judicial states while it reviews servicing procedures. Consumer advocacy groups, state attorneys general, and federal lawmakers are all calling for a nationwide foreclosure freeze until the banks can clear up the paperwork issues in question. Senate Majority Leader Harry Reid (D-Nevada) said he welcomed the decision announced by Bank of America to expand its foreclosure moratorium. “I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course,” Sen. Reid said in a statement. “It is only fair … to suspend foreclosures until a thorough review of foreclosure processes is completed and homeowners can be assured that their documents are being analyzed properly. I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states as well.” Members of Congress from both parties are petitioning for a federal investigation of mortgage servicers that have instituted foreclosure suspensions. An announcement is expected to come as early as Tuesday of a joint investigation by attorney general offices in as many as 40 states. Bloomberg reports that the coordinated effort will be led by Iowa Attorney General Tom Miller.

http://www.dsnews.com/articles/bank-of-america-halts-foreclosures-nationwide-2010-10-08

Today's Mortgage Rate... Lower Than Yesterday's

Here is an article I read on DSNews today. These new figures from Freddie Mac are stunning. With rates already at their lowest in over a half of a century, one has to wonder how low will they go? Here is the article:

How low can we go? When it comes to mortgage rates, the floor keeps dropping. Industry reports released Thursday show that interest rates for home loans – already at their lowest marks in more than a half-century – dropped again this week.

Market analysis conducted by Freddie Mac found that the 30-year fixed-rate mortgage (FRM) averaged 4.32 percent (0.8 point) for the week ending September 30, 2010. That’s down from 4.37 percent last week and tied with the all-time low in Freddie’s survey set four weeks ago.

The GSE reported that the 15-year FRM this week averaged a new record low of 3.75 percent (0.7 point). Last week, it came in at 3.82 percent.

The 5-year adjustable-rate mortgage (ARM) dropped to an average of 3.52 percent this week (0.6 point), according to Freddie Mac, also setting a new record low. The 1-year ARM rose slightly to 3.48 percent (0.7 point).

“Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week,” said Frank Nothaft, Freddie Mac’s VP and chief economist.



Weakening confidence in the economy’s trajectory was evident despite notable improvements in household balance sheets. Nothaft cited a Federal Reserve report, which shows that homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010, after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009.

A separate weekly study by Bankrate also put mortgage interest rates at record-lows. Bankrates survey is based on data gathered from the top 10 banks and thrifts in the top 10 U.S. markets.

The tracking company reported that rates for conforming 30-year fixed mortgages remained unchanged this week at their 4.5 percent low (0.36 point).

The average 15-year fixed mortgage retreated to 3.94 percent (0.31 point), down from 3.96 percent last week, while the larger jumbo 30-year fixed rate inched lower to 5.16 percent.

Bankrate says adjustable rate mortgages hit new lows also, with the average 5-year ARM decreasing to 3.68 percent and the average 7-year ARM falling to 3.91 percent.

According to Bankrate, mortgage rates remain at record lows, not as a result of poor economic data, but rather in expectation of additional efforts by the Federal Reserve to revive the economy.

“Specifically, investors are counting on the Fed to resume quantitative easing – purchases of government bonds in an effort to drive market interest rates even lower,” the company said in its report. “Investors have been front-running the Fed by buying government debt now, bringing bond yields to ultra-low levels. Mortgage bond investors are pricing for the risk that loans could be refinanced if the Fed’s efforts reduce mortgage rates further.”