REO Sellers of Homes Required to Provide Written Disclosures to Buyers

 

REO buyers of homes in California should make sure that REO lender/sellers provide all disclosures that are required by law.

REO lender/sellers in California are in some situations exempt from property disclosures to buyers based upon theory that they are not familiar with the properties acquired through foreclosure. 

However, REO sellers of residential properties (one to 4 units) in California are required to provide some disclosures to buyers.

REO lender/sellers are not obligated by law to be aware of all property defects, such as foundation cracks, water leaks, plumbing problems, leaky roofs, need for repairs, and they usually don't provide disclosures to buyers of such unknown challenges.

REO property buyers should always hire their own professional property inspections, get complete reports, and be satisfied with information about condition of the property.

California Civil Code 2079 et. seq. generally provides guideline for seller disclosures of material facts required to be given to buyers of one to four residential units.

Lender/sellers in California are required to provide the following disclosures to buyers for REO properties for residential properties one to four units: 

• Agency disclosure statement - California Civil Code 2079.14 
• Agent's visual inspection disclosure - Civil Code 2079
• Combined hazards booklet - recommended but not required
• Carbon monoxide detection devices - disclosure recommended - devices are required at such properties
• Condominium or other planned unit development documents - Civil Code 1368(a) 
• Flood insurance or possible disaster relief assistance - 42 U.S. Code 5154(a)
• Lead based paint disclosure - 42 U.S. Code 4852(d)
• Material facts - required disclosure - seller form SPQ not required by law
• Megan's law disclosure - Civil Code 2079.10
• Mello-Roos assessments - recommended and not required
• Meth Lab cleanup - CA Health and Safety Code 25400.28 
• Natural Hazard Disclosure Statement - recommended but not required
• REO Advisory - recommended but not required
• Seller's affidavit of non-foreign status - recommended but not required
• Smoke detector statement of compliance - CA Health and Safety Code 13113.8(b)
• Water conserving fixtures - CA SB 407 - required for properties built prior to January 1, 1994
• Water heater bracing - CA Health and Safety Code 19211 

For detail of information on seller disclosures required for lender owned REO properties in California - see the California Associations of REALTORs seller disclosure chart.

 

3,229 Orange County CA properties have resold this year so far (January 1 to February 27, 2012) - with average sold price of $502,130.

563 of those resold Orange County properties (17.4 percent of market) were REO lender owned after foreclosure - average resold price of $358,439.

 

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Source of some information the California Association of REALTORs.  Other information is from CRMLS and includes homes resold in Orange County, not including that for new homes for sale or sold, not including those sold at trustee auctions after foreclosure, otherwise includes those listed and sold by all agents and brokers.  This is for information only and not the providing of legal services.   

Professional REALTOR® agent representation and help for property owner/sellers, private trust estate representatives, estate administrators and executors, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County CA real estate

Posted via email from Explore OC Homes

Newport Beach CA Real Estate Market Update With Some Improved Signs

Newport Beach CA real estate and home selling market update shows some positive change.

92 Newport Beach homes have sold so far this year (January 1 to February 26, 2012) - with average sold price of $1,286,477 - average market time of 117 days for sold homes.

82 Newport beach homes were sold last year during the same time (January 1 to February 26) - with average sold price of $1,235,448 - average market time of 137 days.

So the Newport Beach CA real estate market has improved this year so far with number of home sales up, average sold price up, and average time on market down.

Newport beach now has 415 homes listed for sale - with average asking price of $2,270,705. 

See NEWPORT HEIGHTS area homes now listed - click here for active link to MLS information.  

Newport Heights home - Aliso Avenue - $1,750,000 - Newport Beach - 5 bedrooms and 5 baths - MLS# P797192 - IDX link

 

 See CORONA DEL MAR village homes now listed - click here for active link to MLS information.

 Corona del Mar home - $2,900,000 - 5 bedrooms and 5 baths - MLS P808865 - IDX link   

 

See BALBOA ISLAND homes now listed - click here for free active link to information.

Balboa Island home - Diamond Ave - $2,650,000 - 5 bedrooms and 3 baths - MLS# U12000315 • IDX link

Our recommendation to Newport Beach home sellers - Be careful about your price selling expectations - Buyers are looking for value.

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Contact Us - at 949-854-7747 - about listing and sale of Newport Beach CA homes and real estate.

Source of some information is CRMLS and does not include that for new homes for sale or sold, those at trustee auctions after foreclosure, and otherwise includes those listed and sold by all agents and brokers. 

 

Professional REALTOR® agent representation and help for property owner/sellers, private trust estate representatives, estate administrators and executors, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County CA real estate

Posted via email from Explore OC Homes

Water-Conserving Plumbing Fixtures Must be Disclosed by California Home Sellers

 

California government has favored consumers for years and has a number of laws on seller disclosures to protect home buyers.

New CA law - CA Senate Bill 837 - says that home sellers must disclose to buyers whether there are water-conserving plumbing fixtures.

The TRANSFER DISCLOSURE STATEMENT (form provided by California Association of REALTORs) has been revised to include checkbox in Section IIA for a seller to disclose whether the property has water-conserving plumbing fixtures (low-flow toilets, shower heads, and faucets).

 

This revised transfer disclosure statement (TDS) also clarifies in Section IIB that, by January 1, 2017, a single family residence built on or before January 1, 1994 must generally be equipped with water-conserving plumbing fixtures.

In other words - starting as of January 1, 2017 - any California home built before January 1, 1994, will require water-conserving plumbing fixtures as a point of sale mandate.

If, however, the single-family residence is altered or improved on or after January 1, 2014, the water-conserving plumbing fixtures must be a condition of final permit approval. 

CA Senate Bill 837 was chaptered as state law and codified as Cal. Civil Code § 1102.6 - became effective on January 1, 2012.  

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Source of information is California Association of REALTORs - and chaptered bill - CA Senate Bill 837 

 

Professional REALTOR® agent representation and help for property owner/sellers, private trust estate representatives, estate administrators and executors, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County CA real estate

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Buyer Demand for Housing is Up at Orange County CA Real Estate

 

REALTORs® and real estate professionals and their customers are looking for local market trends.

How is the real estate market?  We have something new to talk about when people at Orange County CA ask. 

Buyer demand for Orange County CA homes and properties during first 6 weeks of this year 2012 is at highest level as compared with that time each year since 2005.

 

Steven Thomas at ReportsOnHousing.com measures buyer demand by the number of new pending sales over the prior month, and those pending sales numbers are up.

 

Buyer demand for Orange County property priced below $500,000 is up 32% as compared with same time last year 2011.

Average market time to sell homes in that range of below $500k is short at 1.6 months and favors the sellers.

For homes priced above $500,000, buyer demand is also up 2%.  This is especially positive news considering inventory of Orange County property listed for sale is down 26% from last year.

This real estate news at Orange County CA is good for property owner/sellers.  Owners now on the sidelines need to get organized, get their properties cleaned and painted, and listed for sale with an experienced REALTOR® as soon as possible.

We hope for Orange County CA real estate trends that are positive and sustainable - will wait and see whether this news from the first six weeks of 2012 marks a real trend - whether it is supported by escrow closings, and other sales during the next 3 months - with possible window to the housing market recovery. 

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Source of information is Steven Thomas, Orange County CA real estate broker - www.ReportsOnHousing - February 18, 2012  

 

Professional REALTOR® agent representation and help for property owner/sellers, private trust estate representatives, estate administrators and executors, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA 

Posted via email from Explore OC Homes

East Costa Mesa Real Estate Update - February 2012 - Orange County CA

 

East Costa Mesa is a most popular area at Orange County CA - with old-fashioned neighborhoods where people and kids walk and bike to visit each other, attend good schools, enjoy public parks, nice churches, shop at local markets - at gentrified commercial and restaurant areas on 17th Street.

See link to all East Costa Mesa SFR detached homes now listed - click here. 

East Costa Mesa is located next to and inland from Newport Beach CA and within two miles of its Newport Harbor and the ocean.  

East Costa Mesa home listed - $710,000 - 3 bedrooms and 2 baths - 1400 sf interior - MLS# U12000366 - IDX link

      

East Costa Mesa now has 35 detached single family homes now listed - with average listing price of $832,960.

 

 

East Costa Mesa home listed for sale - $895,000 3 bedrooms and 2 baths - 2196 sf interior - MLS# L38123 - IDX link       

 

East Costa Mesa home listed for sale - $1,050,000 - 4 bedrooms and 3 baths - MLS# U11004733 - IDX link

 

 

177 East Costa Mesa homes (SFR and condos, all shapes and sizes) have sold during this past one year - with average sold price of $603,419

 

 

CONTACT US - at 949-854-7747 - about listing and sale of East Costa Mesa CA homes and real estate.

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Source of some information is CRMLS and does not include that for new homes for sale or sold, those at trustee auctions after foreclosure, and otherwise includes those listed and sold by all agents and brokers. 

Professional REALTOR® agent representation and help for property owner/sellers, private trust estate representatives, estate administrators and executors, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County CA real estate

 

Posted via email from Explore OC Homes

Amazingly Good Purchase Money Home Loan Rates Continue at Orange County CA Real Estate

Purchase money home loan and mortgage rates quoted this week by First Capital Mortgage, Newport Beach, CA, continue to be amazingly low.  

 

Tim Sibley Direct 949.721.5018 Fax 949.640.7091 tsibley@firstcapitalmtg.com Sam Isaac Direct 949.574.3556 Fax 949.640.7091 sisaac@firstcapitalmtg.com Downloads   Loan Application Payment Schedule Disclosure Forms Loan Calculator       Special Niches Loans to $10,000,000   Saturday, February 18, 2012 My Real Estate News Conforming Loan Limits / Expanded Conforming Limits 1 Unit: $417,000 $625,500 2 Units: $533,850 $800,775 3 Units: $645,300 $967,950 4 Units: $801,950 $1,202,925 Conforming Loans $0 - $417,000 Loan Program Interest Rate Payment per $1000Points 30 Year Fixed 3.625% 4.560 1 15 Year Fixed 2.875% 6.846 1 10 Year Fixed 3.125% 4.284 1 7 Year Fixed 2.875% 4.149 1 5 Year Fixed 2.750% 4.082 1 Expanded Conforming Loans $417,001 - $625,500 Loan Program Interest Rate Payment per $1000Points 30 Year Fixed 3.875% 4.702 1 15 Year Fixed 3.125% 6.966 1 Jumbo Loans $625,500 - $2,000,000 Loan Program Interest Rate Points 30 Year Fixed 4.250% 1 15 Year Fixed 3.500% 1 10 Year Fixed 3.500% 1 7 Year Fixed 3.000% 1 5 Year Fixed 2.750% 1 Money Rates Index Rate 10 Yr Treasury 2.03% Prime 3.250% 6 Month Libor .751% 1 Year Libor 1.066% 12 MAT .208% COFI 1.221%

First Capital MTG. License # 4130713 California Please call for pricing between $1,000,0001 - $10,000,000 • Rates are intended for Real Estate Professionals only For APR information about any specific loan product, call Tim Sibley at 949-718-1511.

 

This is excellent real estate news - good for owners, buyers, sellers and investors.  Such excellent mortgage rates at Orange County CA real estate are a big reason that properties priced under $500k are selling quickly - with average market time of less then 2 months - favoring the sellers.

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If you want to buy a home at Orange County, CA, are financially qualified, have twenty percent down payment, good credit history, can qualify financially for a conforming loan of $417,000 with one point - your monthly payment on that loan would be $1,901,52.  This is for information only and not the providing of real estate or mortgage services.  You must consult with an experienced mortgage broker to determine whether you qualify and if that would be the best loan for you.

Professional REALTOR® agent representation and help for Orange County CA property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.

 

Posted via email from Explore OC Homes

Options in California Real Estate Contract Transactions

 

People ask us about possible lease option agreements to sell and buy properties at Orange County, CA.

California real estate contracts sometimes have OPTIONS granted to lessees and proposed buyers.

A rent-to-own or "LEASE OPTION contract" usually contains an OPTION TO PURCHASE clause. 

Sometimes developers get separate OPTIONS TO PURCHASE on bare land so they can buy and develop at some time in the future.  Adjacent property owners sometimes get a PURCHASE OPTION contract to secure future of neighboring property.

Question is whether any such OPTION TO PURCHASE might be something else - such as a "RIGHT OF FIRST REFUSAL" - where the buyer/optionee gets a right to buy at unknown price to be offered by another party at some time in the future.  

A purchase offer to sell property on certain terms can usually be revoked by the owner/offeror any time before it is accepted.  

 

However, if the offeror/seller and offeree/buyer enter an agreement with "independent consideration" delivered to seller, that requires the offer to remain open and irrevocable for a period of time - that's an OPTION TO PURCHASE.

An optionor/seller cannot revoke such OPTION TO PURCHASE if it was granted to optionee/buyer with "independent consideration".  

"Independent consideration" means that there must be actual payment or delivery of consideration of some kind (money, motor vehicle, jewelry, etc.) - which needs to be separate and distinct from the payment for the purchase of the property if the option was exercised.

If the option is contained in a lease - LEASE OPTION TO BUY - written and agreed upon provisions of the lease, including the rent to be paid, can be sufficient consideration for the option.

 

If there is no separate CONSIDERATION actually received by the optionor/seller, that option would remain revocable by seller/optionor.  However, if the option is exercised by buyer before it is revoked, the seller/optionor becomes bound under the contract even if there was no consideration.

The option agreement must contain essential material terms of the purchase and sale - identities of the buyer and seller, identity of the property, and the purchase price.

How such OPTION TO PURCHASE is exercised in California

"EXERCISE" of the option is usually by the buyer/optionee - and that would be optionee/buyer's acceptance of the offer to sell the property.

The option agreement can specify how the option is to be exercised - examples are "NOTICE OF EXERCISED OPTION" delivered by hand to the owner/optionor, or by fax, or by confirmed receipt email, or by messenger.  If the method is specified in the original option agreement, that must be followed exactly.  If no method is specified, the option can be exercised in any reasonable way that gives the seller/optionor notice that the buyer/optionee is accepting the offer and ready to perform.

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This is for information only and not the providing of legal or tax services.  Be very careful with options in California real estate purchase or lease contract.  If you are a buyer or seller of real estate and getting an agreement with an option, you should consult with an attorney in your state and area and make sure you get that right according to law. 

Professional REALTOR® agent representation and help for Orange County CA property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.

Posted via email from Explore OC Homes

Investors Set Records Buying More Orange County CA Homes and Real Estate During January 2012

 

Investor buyers got busy last month during January 2012 at Orange County CA real estate.

The Orange County Register has reported  that Orange County CA home sold prices were below $400,000 in January 2012 for the first time in 33 months. 

Orange County’s median home price - price at the midpoint of all sales - was $392,000 - down $23,000 or 5.5% from January 2011 -  while sold prices were down during January at many of the OC zip code market areas.

Orange County CA home sales were at 1,872 units during January 2012 - which is down 3 percent from January 2011 last year - and 26 percent below the January average since 1988.

Investor buyers like this Orange County home resale market -  28.6 percent of Orange County homes sold during January 2012 were to investors and second home buyers.

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Source of information is OCRegister.com. 

 

Professional REALTOR® agent representation and help for Orange County CA property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.

Posted via email from Explore OC Homes

Shortened Time Frame From Default to Foreclosure at Orange County CA Real Estate

 10,898 Orange County CA properties are in the foreclosure pipeline as of today - February 15, 2012 - after filing of notice of default and prior to trustee auction sale at end of foreclosure.

A recent trend at Orange County Ca real estate is that time from default to foreclosure (average number of days) has been significantly reduced since last year.

California is a non-judicial foreclosure state.  Time to foreclose is the average number of days between the filing of the Notice of Default and the final sale at trustee auction after foreclosure during any specified month.

 

 

 

During January last year 2011, it took average of 338 days for lender/lienholders to complete foreclosures at Orange County - that time frame was reduced to 284 days last month January 2012.

 

 

At Irvine CA real estate the time frame from default to foreclosure was 416 days last year during January 2011 - that average time was reduced to 223 days this year during January 2012.

If you are interested to see a list of properties in default at any Orange County CA city and now scheduled for trustee sale auctions after foreclosure, contact us here and let us know your name, email address, and city of your interest for this information.  

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Source of information is ForeClosureRadar.com.   

Professional REALTOR® agent representation and help for Orange County CA property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, conservators, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.

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New California Smoke Free Housing Law 2012

  

California New Smoke Free Housing Law for 2012

The  California Smokefree Housing Law (SB 332) went into effect on January 1, 2012 - added Section 1947.5 to the California Civil Code- and gives multifamily property owners and managers the power to prohibit smoking in rental units.

 

This authorizes a landlord of a residential dwelling to prohibit the smoking of tobacco products on the property, in a dwelling unit, in another interior or exterior area, or on the premises on which the dwelling unit is located.

This new law makes requirements on notices and leases that a landlord who prohibits smoking pursuant to this authority is subject to federal, state, and local requirements governing changes to the terms of a lease or rental agreement for tenants.

California owner/landlords had prior legal authority to prohibit smoking - this new law gives them platform for new programs to enforce smoking bans in multifamily housing communities.  

See Public Health Law and Policy (PHLP) website - with information for property owners and managers who are considering adoption of smoke free policies.

City of Pasadena is even more strict with its smoke free housing law for multi-family units 2012.

The City of Pasadena is leading the California trend and has banned smoking in all multi-family units including condominiums and townhouses, and prohibits smoking in all common areas and inside units.  See the Pasadena city ordinance at "Reduction of Drifting Tobacco Smoke in Multi-Unit Housing."   

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Source of some information is Davis-Stirling.com newsletter, is for information only and is not the providing of legal services. 

Posted via email from Explore OC Homes