Wednesday, November 09, 2005

Smoke Dedectors Are Mandatory On Every Home Sale In Los Angeles County

Fire preparedness Is More Than Making Sure The Detector Beeps

It is that time of year again when days grow shorter, nights longer and, most of the US clocks "fell back" an hour last month. This time changes serves as an excellent reminder to replace smoke detector batteries. Through valuable changing the battery in an smoke detector is only one step in ensuring that this life saving device does its job.

A smoke detector should be installed in each bedroom and on every level of your home, if you have them make sure they are in good working order. They should be tested once a month, they are equipped with a test button that, when pressed and held down for a few seconds will activate the alarm.

Use a safe contained source of smoke such as incense or "synthetic smoke" in an aerosol can to test the detector. IF the smoke detector are more than 10 years old, consider replacing them. They work 24 hours a day, seven days a week, that's more than 87,000 hours over 10 year period.

With smoke detectors, cleanliness is important. A dusty or lind-laden unit can't do its job properly. It should be vacuum with an upholstery attachment periodically to remove the dust buildup.

A recent released report by the Consumer Product Safety Commission on the audibility of smoke alarms found that linking or interconnecting smoke alarms could provide an earlier warning to fire and smoke. The study also found that wireless technology could be sa solution to better protecting American homes.

With an interconnected device, when one alarm detects smoke, it triggers all other alarms to sound. The immediate reaction provides more warning in more places. There is, on average, only three minutes to escape a house fire after the first smoke alarm goes off.

Families should create and frequently practice a fire-escape plan. Make sure everyone, including children know what the smoke alarm sounds like. Practice the escape plan during the day and at night when family members are asleep to see if everyone responds. If an older child or adult doesn't wake up, assign an adult to wake and assist that individual in the even of a fire. Always assist younger children.

Alberto Pacheco
818 481 9211
Realtor Calbre 01200694
Keller Williams Porter Ranch

Monday, November 07, 2005

Beware of Fast Cash Home Sales

Beware Of Fast-Cash Home Sale Huckster

The signs are everywhere on big, blaring billboards and pieces of cardboard tacked onto telephone poles: " We Buy Ugly Homes." or sometimes "We Buy Houses."

But if you decided to deal with the "rapid resellers," don't expect to get top dollar. And exactly how much you'll get doesn't depend on the condition of your property, either. If you are willing to take your money over time, for example, you may be able to cut a better deal than if you want all your money immediately.

Ken Channa, HomeVestors director of training, says his people look to earn anywhere from 10% to 18% of the value of the house after it is fixed up and sold. That translates into offer to owners typically in the 55% to 65% range of fixed-up market value.

HomeVestors look for 3 kind of sellers:

- People who have owned adn lived in their homes for at least a decade but have not maintained their properties.

- Heirs who recently have inherited houses from a deceased loved one, houses thay may have been vacant or not well maintained for a long time, or houses that may be difficult to part with.

- Investors who are tired of being landlords and have not kept their places inf good repair.

Financially strapped owners who have not been able to make their house payments and are facing foreclosure are "not a big part" of HomeVestors' customer base says Channal. There are numerous honest investors engaged in short-term residential resales.

So, if you want or need to sell quickly, don't want to lift a finger to make your place more attractive to a wider pool of buyers, or perhaps just don't like the idea of putting a for-sale sign in your frontyard or having strangers tramping through your castle, selling to an investor may be the easiest way out.

Be forewarned, though, that choosing the right one takes as much effort as picking a good real estate agent. Start by checking them out with with your local Better Business Bureau, county consumer affairs agency or state attorney general's office.

Another tip: Look for an identifiable name and place of business with a phone number that answers during regular business hours.

Be sure your buyer has the ability to close quickly, certainly as quickly as original promised. Beware of hidden charges too. No one should charge a fee to view your property or make you an offer and there should be no sales commission, either.

Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant  Real Estate News, Mortgages, Trends

Thursday, November 03, 2005

Invest in Income Properties Like Duplexes Triplexes or Fourplexes

Enter To Hot Market Could Be A Duplex

Tired of being priced out of the market? Perhaps the answer is to buy an income producing property that you can live in, such as a duplex or triplex. The rental income could help pay your mortgage and enable you to qualify to buy a more expensive property.

Ideally, your wealth building strategy might go something like this: You move into the property and own it long enough to accumulate equity through appreciation. Then you sell. You use the proceeds earned from the portion of the building that you occupied as a down payment on a single family home.

You exchange the proceeds from the rental portion of the property into a larger rental that will have more upside potential thereby avoiding capital gains tax. This can be a 1031 Exchange.

Check the local landlord-tenant laws. Some communities like Santa Monica have rent control ordinances. In such municipalities you may not be able to raise rents to market rates. Base your projections on actual and allowable, not inflated rents.

Find out the strength of the local market. The rental market, like housing market, fluctuates over the time. The most successful rental properties are often located near shopping, transportation and good schools.

Finally, carefully consider whether you can handle being a landlord who will live close to the tenants

Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant  Real Estate News, Mortgages, Trends

Wednesday, November 02, 2005

Watts Home Vales Appreciation

WATTS Home Values Appreciated More Than 40 %

Watts was the once predominantly African American community, which gained international notoriety during 1965 riots, saw resale-homes values increase by more than 40% last year, according to Data Quick Information Systems, a real estate research firm. Countrywide median rose 24.8%.

Fueled by demand from latino home buyers, Watts is on target this year to fulfill analysts' predictions that the Southland entry level market still has room for hefty appreciation. A comparison sales in August for this year and last, the latest period for which figures are available, showed an increase of 41.3% in the price of single family resale homes to a median of $ 325,000.

The prices have made it a hot spot for property flippers. Nearly 10% of Watts buyers this year have resold within three months, compared with an average of 3% throughout Southern California during the last decade.

In today's Watts, latinos make up the majority. African Americans leaving Los Angeles for the Inland Empire, Palmdale, Lancaster and the Southern United States.

Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant  Real Estate News, Mortgages, Trends

Tuesday, November 01, 2005

Non Performing Mortgage Loans

Lenders Work Out Payment Deals For Borrowers In Jams

Many folks who get behind on their loans often trash unopened envelopes from their lenders because they figure it's just another dunning notice. But when they opened and get in touch with their lender then they discover the world of loss mitigation, a relatively new cosmos in which most mortgage investors bend over backward to keep financially troubled owners in their homes.

They help you if you have a legitimate reason for not being able to meet your obligation - illness, for example or some other major catastrophe, they want to help. Where is economically feasible, we do whatever we can to get "nonperforming loans reperforming again," said Bill Merrill director of nonperforming loans at Freddie Mac.

Most companies that administer Freddie Mac mortgages have what are variously known as work-out departments or portfolio retention sections. Their goal is to help those who want to remain in their homes and not because they are paid to do so. "Profit isn't the motive, at least is not intended to be," Merrill said.

Servicers want to keep things running smoothly because they don't earn any fees when things are not running smoothly. Loans in default are much more expensive to administer. Everybody loses not just the homeowner but the investor as well, when a loan goes into foreclosure.

Help doesn't come automatically however, you have to get in touch with your servicer, unfortunately studies show that most people don't. About 56% of all delinquent borrowers allow their homes to go all the way to foreclosing without ever taking to the lender accodring to merrill. When borrowers do call, though, four out of five go on to be happy homeowners. Early intervention is key, because you are not in arrears as much, Merrill said

Here are some of the options lenders can make available to delinquent borrowers.

forbearance: An agreement that temporarily allows borrowers to pay less than a full payment, or no payment at all, for a set period. Forbearance is an option when you can show that funds from bonus, tax refund or other source will let you bring the mortgage current at specific time in the future.

Reinstatement: Sometimes combined with a forbearance, this allows the borrowert to pay the amount they are behind in one lump sum by specific date.

Repayment Plan: An agreement that gives a fixed amount of time to repay what is owed by combining a portion of what is past due with the regular monthly payment.

Loan Modification: An agreement that permanently changes one or more terms of the original mortgage so the payment is more affordable. The borrower and lender may agree to add the missed payments to the loan balance.

A lender might be able to help homeowners who do not want or cannot keep their home. Indeed there are different ways to avoid foreclosing and reduce the impact on credit standing.

A buyer could be allowed to take over the mortgage debt, even if the loan is considered non-assumable. Or if the house can be sold for less than what is owed, the lender might agree to a "short payoff" in which the lender writes off the portion of the mortgage that exceed the proceeds from the sale. A third choice allows the transfer of the title of the home to the lender in exchange for canceling the debt.

Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant  Real Estate News, Mortgages, Trends