8th Annual Eagle Rock Music Festival

The Eagle Rock Music Festival is brought to you by the Center For the Arts, Eagle Rock.

It is a free event. If you would like to contribute a donation, all proceeds support the Center’s free after-school programs for middle and high school students.

See attached flyer for more details

Pasadena Market Stats 9/01 - 09/26

Market activity of single family homes in Pasadena, CA for September 1st through September 26, as reported in I-Tech MLS (The Pasadena MLS)

Active Listings (available for sale)

Sale Pending (September)

Sold (September)

Wiggle Waggle Dog Walk for Pasadena Humane Society.

Please join us and many others for this wonderful opportunity to raise funds for the Pasadena Humane Society and SPCA.

The Wiggle Waggle Walk for the Animals is our shelter's largest fundraiser. In 2006, more than 1,200 people from around Southern California attended this event and helped raise a record $155,000 for the lost, injured and abandoned animals in our care. You don't have to have a dog to participate, just a desire to animals in need!

To register as an individual for the walk* and begin fundraising, click here.* We ask that all walkers register whether or not they will be fundraising!
To register as a team member for the walk* and begin fundraising, click here.
To donate to an individual, click here.
To donate to a team, click here.

Everyone is welcome to walk and registration is FREE. But we encourage you to donate or help raise money for our furry friends at the shelter by asking your friends, family, co-workers, and anyone else you may know to sponsor you in the walk.

When: Sunday September 30 at 8 am.

Where: Pasadena's world-famous Rose Bowl

Hope to see you there!

Watching for signs of a market turnaround

By Lew Sichelman, United Media Feature September 23, 2007

WASHINGTON -- There are plenty of homes for sale, a record number nationally and perhaps an all-time high in your neighborhood as well. But apart from those folks who must move for one reason or another, there just aren't many buyers. Even the looky-loos are staying away.

The reason is that people are afraid to dive in at a time when they think housing prices may be dropping. That's why most would-be buyers have taken themselves out of the game until prices hit bottom, which could be a mistake for those who plan to stay in their new homes for quite a while.


The common wisdom is that if the house of your dreams comes along, go for it. After all, it may not be available six months from now. As long as you remain in the house, any further drop in prices will be offset by rising prices down the road.

"In all likelihood, you'll make money in the long run," said Bernie Markstein, a senior economist with the National Assn. of Home Builders. "So your best deal could be right now.

"That scenario notwithstanding, for most people, today's situation raises the question: How do you know when prices have bottomed out?

It's tough to know the precise moment when prices stop falling and start rising once again. It's not even easy to spot a trend reversal. "If it was so easy to find the bottom," Markstein said, "we'd all be millionaires.

"But there are telltale signs that smart buyers can look for, evidence that the housing market has finally firmed and is about to rebound. Every economist has his or her favorite indicators.

For Lawrence Yun, senior economist at the National Assn. of Realtors, it's jobs and rents. Job growth creates pent-up demand, and demand equals sales, Yun said. When apartment rents are rising, tenants are likely to become fed up and start looking to buy.

For Markstein, a key indicator is the incentives that builders are throwing at potential buyers. Once the giveaways start to dry up, he said, it's a sure sign the market is beginning to turn.

Robert Campbell, publisher of the "Campbell Real Estate Timing Letter," has five indicators on his list. He said the signals are accurate for the San Diego real estate market, where he is based and has tested his theories for 24 years. The indicators, he added, "should work" in just about any locale.

Campbell's five "vital" signs:

* Existing home sales are perhaps his "most predictive" indicator. But it takes some legwork, because the number of homes sold in a given month is just a number. What you really want is a moving average, from month to month.
"You need to slow everything down by creating a 12-month moving average," he says.
"This takes the seasonality out of the equation."

Add up the last 12 months' sales -- that's local sales -- and divide by 12. Do the same thing month by month and you'll get an accurate reading of whether sales are slowing or increasing. When the pace begins to quicken, it means sellers are likely to start holding firm on their asking prices -- or at least won't be willing to come down as much.

Don't confuse this signal with the average number of days on the market, Campbell warned. Although time on the market is "helpful," it's a stat that is too easily manipulated. After all, when a seller takes his house off the market for a while or switches agents, the clock resets at zero when it comes back on the market.

* Building permits are "an excellent leading indicator," Campbell said. "No one reads a local market more accurately than builders. They have their fingers on the pulse of the market and adjust their businesses according to demand.

"When builders pull more permits in a month than they did the month before, then pull even more the next month, they think the market is improving and they want to be ready.

* Public information on mortgage defaults can be gathered from the local recorder's office. If defaults are rising, it means lenders are still being loaded up with foreclosed properties, which have to be put on the market to compete with other sellers. And when there's too much supply, prices tend to fall.

If the number of foreclosure filings is rising, it is a sure signal of prices headed down, Campbell said.

* Foreclosure sales are another indicator. The actual number of foreclosures is the number of filings minus the number of owners who have been able to bring their loans current, at least for the time being. Campbell calls it "a confirming number."

"Lenders tend to dump foreclosures on the market at 10% to 20% below the rest of the market" so they can get rid of it quickly, he said.

* Mortgage rates aren't so much a predictor as an "accelerator," Campbell said. This signal doesn't hold up very well right now because of the sub-prime mortgage-market meltdown. But normally, rising rates slow the housing market, and falling rates propel it.

The housing market will eventually turn around. It may be months or even years in a given locale, but it will turn. The trick is to know when it does before others do. Anyone following these five vital signs on a regular basis, Campbell said, "can nail the bottom pretty closely."

Source: latimes.com

Camera shy . . . for now

By Ruth Ryon, Los Angeles Times Staff Writer September 23, 2007

British rocker Ozzy Osbourne has been uncharacteristically quiet about the late-summer sale of his Beverly Hills house to pop star Christina Aguilera for close to $11.9 million.

The rock star has been equally low key about the Hidden Hills home he purchased shortly thereafter for nearly $12.5 million. He moved in two days after escrow closed.

In the past, Ozzy didn't seem to mind publicity about where he was living, and life in his former Beverly Hills home was anything but private. It's where MTV filmed the antics of the 58-year-old and his family.

Fans were known to show up by the tour-busload, eager to snap pictures of the Osbourne children.Ozzy and his manager-wife, Sharon, 54, now empty nesters, sold the two-story Mediterranean for the peace and quiet of Hidden Hills, a West Valley gated enclave known for its seclusion and pastoral setting.

Their new home is a Hamptons-style house in about 10,500 square feet, built in 2001 on 2-plus acres. The house has six bedrooms and 10 bathrooms plus a pool.The equestrian community may be short on sidewalks and traffic lights, but it does have its own school and police department.

At last count, there were about 2,000 residents in 648 houses.The Osbournes, who went on tour this summer with their music festival Ozzfest, are just part of a parade of celebrities who bought homes during the past few months in the area.

She finds a home she can bond withActress Denise Richards, Charlie Sheen's ex-wife, backed out of buying one Hidden Hills home but then purchased another, which had been on the market for about $4.6 million.

The house, built in 1991, has five bedrooms and five bathrooms in 5,600 square feet. The air-conditioned home is on close to 1.2 acres with a pool.Richards, 36, made her breakthrough in the film "Starship Troopers" (1997).

She followed with "Drop Dead Gorgeous" (1999), then was tapped to be the next Bond girl in "The World Is Not Enough" (1999).Practicing her sharps in 'the flats'Melissa Etheridge already lived in Hidden Hills, but she wanted a larger home in what is known as "the flats" area of the 2-square-mile community.

The singer, 45, bought a house that had not been on the market. She paid $5.1 million.The house, built in 1995, has five bedrooms and seven bathrooms in 6,500 square feet.

It sits on 1.4 acres and has views of the western foothills of the San Fernando Valley.$8-million sale is music to his earsOf course, not everyone stays inside Hidden Hills' gates forever. Graeme Revell, the award-winning film-music composer, just sold his home there for about $8 million.William Woodward, managing director and founder of Anthem Venture Partners in Santa Monica, bought the home.

The 12,000-square-foot European manor is on slightly more than 4 acres, adjacent to riding trails. The home has five bedroom suites, a library, a music room, an indoor racquetball court, a 1,500-bottle wine cellar and a guesthouse/recording studio.

Revell has written scores for such films as "The Crow," "Sin City" and "The Negotiator." The 51-year-old has a beach house where he plans to live.Terrie Greenup of Pritchett-Rapf & Associates in Malibu represented the buyer. Lisa Gutman of Re/Max in Calabasas and Drew Mandile and Brooke Knapp, both of Sotheby's International Realty in Beverly Hills, shared the listing.

Source: latimes.com

Groundbreaking Green Home Tax Breaks

Matt Woolsey 03.07.07, 12:01 AM ET

Leveraging real estate ownership into deductions has long been an effective strategy for fending off the Internal Revenue Service. Now, if you're willing to make green improvements, your home can lighten your tax burden even more.

In an effort to reduce energy consumption and pollution, loads of tax credits are available for homeowners looking to limit waste and emissions--consider it a stick and tofu approach. They're the result of the 2005 Energy Policy Act, which became effective for the 2006 tax year.
The biggest projects carry the largest credits. A solar power system for creating electricity carries with it a 30% of cost tax credit up to $2,000. The same credit goes for solar-powered water heaters, so long as they're used for residential purposes. Trying to write off a pool or Jacuzzi system will get you in hot water.

"Solar water heaters in the right kind of climate are the most accepted technology," says Warren Karlenzig, chief strategy officer of SustainLane, a best practices consulting firm for state and local governments. "But they're not as effective if you live in a place which doesn't get a lot of sun."

For the ambitious green-thumbed builder, any energy cell system that has an efficiency rating of 30% and a capacity of at least .5 kilowatts receives a 30% cost credit, as well as an additional $1,000 for every kilowatt of power the system can produce.

But new tax credits for home efficiency improvements aren't limited to large-scale enterprises. In fact, available credits exist for low-key projects that, in recent Aprils, have been out of bounds for tax breaks.

Substantial undertakings like building a driveway or adding a pool have been deductible for a long time, but in years past you couldn't save money for window, floor or roof improvements. Now, if the materials are Energy Star-certified and fall under the scope of the Energy Policy Act, you can recoup some costs.

The effect is twofold, according to the Environmental Protection Agency (EPA), which estimates that efficient materials can reduce energy costs by 30%. It may have been a mild winter in many parts of the country, but the average American still spent $1,900 on energy bills last year.
Throwing yourself headfirst into green improvement by going after tax incentives will help your tax return, but it may not be the best place to start for maximizing your home's energy efficiency.

"Before you start thinking about using solar energy or any of the other high-tech options available," says Karlenzig, "the first thing is to do an inventory."

Most local utilities will perform one free. It highlights your home's trouble spots where the most energy is being wasted. For a couple hundred dollars, private companies improve the service through the use of thermal imaging to graphically map out on a micro level the points at which energy loss occurs.

The biggest perpetrators are almost always windows and doorways, improvements that in the past haven't been tax deductible but now carry credits if they improve energy efficiency.
Exterior windows and doors, including skylights, that meet Energy Star requirements have a 10% tax credit up to $200. This also goes for storm windows and doors. Roofing and insulation or sealing that meets efficiency requirements earns a 10% credit up to $500.

The green building movement has legs in the high-end luxury market. Pharmaceuticals mogul Stewart Rahr has a geothermal cooling system in his $45 million home in the Hamptons, and former CIA Director R. James Woolsey has an expansive solar-powered energy system installed on the roof of his Maryland home.

But while the tax abatements are nice, the money saved in the long term and the ethical motivation to emit less are the primary motivations for green home improvement.

"It's all connected--you save money, you save energy," says Karen Schneider, an environmental protection specialist at the EPA. She points out that the average American home emitted 22,000 pounds of carbon last year. "Credits are paid for 2006 and 2007, but the payoff will be for the life of the product."

If you're looking for the most consistent long-term green solution, the answer lies at your local nursery--trees.

Summer heat flows through the east and west of a North American house, and the EPA estimates that mature trees planed on eastern and western exposures can reduce temperature by almost 10 degrees in summer months. In some cities, like Sacramento, Calif., the local government gives trees away in order to reduce strain on the grid.

Now that's a green solution everyone can wrap arms around.

Sunbelt states push August foreclosure filings up 36%

Filings up 77% in Florida, 48% in California

Nationwide foreclosure filings jumped 36 percent from July to August, data provider RealtyTrac reported today, led by sharp increases in Sunbelt states where inflated home prices rather than economic problems like job losses are thought to be the driving factor.

"The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable-rate loans are beginning to reset now," James Saccacio, chief executive officer of RealtyTrac, said in a statement accompanying the release of the report.

Foreclosure filings climbed in 45 states from July to August, with Arkansas, Kansas, Massachusetts, Mississippi and New Mexico the only exceptions.

Looking back one year, foreclosure filings were up 115 percent, to 243,947, RealtyTrac reported, with only three states -- Illinois, Nebraska and Oklahoma -- recording a decline from August 2006 levels.

California and Florida climbed RealtyTrac's list of states with the highest rate of foreclosures in August, with Nevada keeping its hold on the top position.

Nevada recorded one foreclosure filling for every 165 homes -- more than three times the national average -- as foreclosure filings increased 21 percent from July to August, to 6,197.
California had the second-highest rate of foreclosures nationwide, one for every 224 households, thanks to a 48 percent increase in monthly foreclosure filings to 57,875.
Florida saw foreclosure filings jump 77 percent, to 33,932, for a rate of one per 243 households, the third highest in the nation.

Another Sunbelt state, Arizona, saw a 50 percent increase in foreclosure filings, giving the state the seventh-highest foreclosure filing rate -- one for every 289 households, RealtyTrac reported.

RealtyTrac's monthly reports track filings that are submitted as properties move through three phases of foreclosure. The filings may be generated as properties go into default, are put up for auction, or become "real estate-owned" properties for sale by lenders.

The company's reports have come under fire in the past, with some saying RealtyTrac's numbers overstate foreclosure rates by counting some properties more than once as they move through the foreclosure process. To address the issue, RealtyTrac now provides numbers by unique household four times a year (see Inman News story). But the overall trends suggested by the company's latest monthly report are consistent with second-quarter foreclosure statistics recently released by the Mortgage Bankers Association.

The MBA said four Sunbelt states -- California, Florida, Nevada and Arizona -- drove the rate of mortgage loans entering foreclosure nationwide to a new record high. The MBA reported that during the second quarter, loans entered the foreclosure process at a record rate of 0.65 percent, compared with 0.58 percent during the previous quarter and 0.43 percent during the second quarter of 2006.

"Were it not for the increases in foreclosure starts in those four states, we would have seen a nationwide drop in the rate of foreclosure filings," said MBA Chief Economist Doug Duncan when the statistics were released Sept. 6.

Foreclosure in states like Michigan, Ohio and Indiana are driven primarily by economic issues like unemployment, Duncan said. But during the boom, investors and speculators were particularly active in California, Florida, Nevada and Arizona, the MBA said.

One in three purchase loans 90 days past due or in foreclosure in Nevada during the second quarter was on investment properties or second homes, the MBA estimated, with similar numbers in Florida (one in four) and California (one in five). Nationwide, only 13 percent of past-due or foreclosed loans were on investment properties or second homes.

Although RealtyTrac also placed Michigan, Ohio and Indiana among the top 10 states with the highest rate of foreclosure, the Rustbelt states experienced less severe growth in foreclosure filings from July to August than the Sunbelt states. Foreclosure filings in Ohio were up 33.6 percent from the previous month, to 17,793; 11.3 percent in Michigan, to 15,565; and 11.9 percent in Indiana, to 5,008.

In terms of raw numbers, the Rustbelt states racked up 38,336 foreclosure filings in August, accounting for only 15.7 percent of the 243,947 foreclosure filings tallied by RealtyTrac nationwide. California, Florida, Nevada and Arizona, by comparison, saw 106,819 filings, or 43.8 percent of the total.

The Sunbelt was also home to eight of the 10 cities with the highest foreclosure rates, with six cities in California making the list.

Modesto, Calif., ranked first in the nation with one filing per 79 households, followed by Stockton (second), Merced (third), Vallejo-Fairfield (fifth), Riverside-San Bernardino (sixth) and Sacramento (seventh). Other cities on the top 10 metro list were Detroit (fourth, with one filing for every 87 households), Fort Lauderdale, Fla. (eighth), Las Vegas (ninth) and Cleveland, Ohio (10th).

Source: Inman

Published September 18, 2007

Press Release

Release Date: September 18, 2007

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4-3/4 percent.

Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.

Readings on core inflation have improved modestly this year. However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.

Developments in financial markets since the Committee’s last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; William Poole; Eric Rosengren; and Kevin M. Warsh.
In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 5-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Cleveland, St. Louis, Minneapolis, Kansas City, and San Francisco.


Source: FederalReserve

Staying out of the Fed's business

Alan Greenspan talks with Fortune's Andy Serwer about how he feels about the Fed now that he's no longer chairman. Watch Video

More from Greenspan.

Source: Fortune
Added On September 17, 2007

The Mortgage Market Guide

Provided to you Exclusively By James A. Kay

"THE BEST WAY TO MAKE MONEY IS TO AVOID LOSING IT." Yogi Berra Yep, it is hard to go broke taking profits off the table...and this is exactly what Bond Traders did last week, pressuring Bond prices lower and causing home loan rates to rise by about .125%, as money moved out of the Bond Market.

Remember that conforming home loan rates are tied to Bonds or "Mortgage Backed Securities" - so when Traders sell off Bonds, it causes the Bond price to go down, which in turn causes home loan rates to rise. And although most of last week's economic news was "Bond-friendly", and should have resulted in higher Bond prices and lower home loan rates, Bond Traders decided to sell some holdings and lock in their recent gains instead, ahead of what could be a volatile week of market action.

The Federal Reserve is meeting this coming week, and will release their highly anticipated Interest Rate Decision and Policy Statement on Tuesday at 2:15pm ET. So do you know what is expected from the Fed, and how their actions might save you money right away? Read on and learn, in the upcoming Forecast for the Week.

SPEAKING OF SAVING MONEY...DO YOU KNOW WHY MARCH IS THE BEST MONTH TO BUY A TELEVISION? DON'T MISS LEARNING THIS AND MORE IN THE MORTGAGE MARKET VIEW. YOU'LL GET THE SCOOP ON TIMING YOUR PURCHASES TO SAVE THE MOST, EVEN ON GAS, CLOTHING, AND FURNITURE.

Forecast for the Week

The economic calendar thickens up considerably this week, giving a read on manufacturing, inflation and housing...but many of these reports will take a back seat to the Fed's Policy Statement and Interest Rate Decision, to be released on Tuesday afternoon. Traders are forecasting a 100% chance of a Fed rate cut. About half the traders are expecting a cut of ¼%, and the others expecting a cut of ½%. Of perhaps greater importance is tone of their highly analyzed Policy Statement. Comforting words about inflation will help bonds and home loan rates.

Remember that a cut to the Fed Funds Rate would impact the Prime Rate, which affects Home Equity Lines of Credit, credit cards, business loans, car loans and the like - but does NOT have a direct correlation to home loan rates. For example, if the Fed should cut the Fed Funds Rate by .25%, you would likely see a change to your Home Equity Line of Credit by .25%, if it is tied to the Prime Rate as most are - but do not expect regular home loan rates to drop correspondingly, as the Fed's take on inflation will guide the way.

Stock prices have a history of doing well after the Fed begins to cut rates. Since 1985, there have been seven initial rate cuts by the Fed. During the year following the initial Fed rate cut, the S&P 500 has gained an average of +13.7%.

The Mortgage Market View...

TIMING IS EVERYTHING...ESPECIALLY WHEN IT COMES TO SAVING CASH!

Did you know that the fiscal year for Japanese companies ends in March? Do you care? You SHOULD...if you want the best deal on a new television for your home theater system.

That's because new models and products are scheduled for release at the beginning of the new fiscal year--which for Japanese electronics companies is April. And the release of the new models means...you guessed it...huge discounts on the previous year's models. So if you're shopping for a television, stereo or other electronics, your best bet is to watch for sales in spring.

Looking for Even More Savings?

You can save on just about every item you need...if you know what season or day of the week to purchase it. Below are some tips to help you save the most on your shopping list.

Airplane Tickets: Your best chance for saving is Wednesday morning. That's because airlines introduce their savings over the weekend and during the first few days of the week, subtle price wars begin. By early Wednesday, the savings have usually hit their peak...and there are still plenty of seats left for you to capitalize on.

Furniture: Unless you need to replace your sofa or dining room table right away, those "HUGE" weekend and holiday sales aren't the best time to buy. Instead, you should plan ahead and do your furniture shopping in October or April. That's when new lines of furniture are unveiled at industry trade shows...which means you can save big on the in-store stock that needs to be sold before the new inventory takes a seat on the showroom floor.

Cars: You probably already know that you can save on car purchases in early fall when new models are released and the current models go on sale. And you may also know that your best chance to negotiate a better price is at the end of a month when car dealers need to make their monthly quotas. But did you know you can drive home a great deal early in the week, especially during the morning? At that time, the dealerships aren't overflowing with shoppers like they are on the weekend, so you'll get more personalized attention. Plus, salespeople are more likely to negotiate when they don't have three or four other buyers waiting in the wings to pay full price.

Gas: We've all seen gas prices jump as travel weekends approach. It's a common occurrence...but it can be avoided. Whether you're planning to travel or not, the best time to top-off your tank is early Thursday morning. Then, watch the prices rise and calculate your savings!

Toys: The winter holiday season is a no-brainer for toy sales. But you can also save some serious dollars at the end of summer. Think about it...department stores only have so much room to store their merchandise. And by the end of the summer, they're starting to stock up for the big holiday push...which means they have to get rid of their current inventory of fun. So for savings of 60 percent off and more, try toy shopping as summer winds down in August.

Clothing: By the time the weekend rolls around, just about every dressing room is filled...and the best deals have been picked over already. Why? It's simple. With the large number of special promotions to be marked and shelves to be stocked, most clothing stores get started early. And savvy shoppers, like you, can get the best deals and the best selection by Thursday evenings. As an added bonus, the stores, dressing rooms, and checkout lines aren't nearly as crowded--so you save on stress too!

The moral of the story--plan ahead on your purchases and you'll be rewarded! And be sure to forward on this article to your family, friends, and coworkers too - they'll thank you for it!

James A. Kay Certified Mortgage Planning Specialist™ Grand Harbor Mortgage Office: 310-727-0650 Direct: 323-620-4567 E-Mail: james_kay@grandharbormortgage.com

How to do short sales

There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale." When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose. If you are considering buying a short sale, there could be drawbacks. For your protection, I suggest that all borrowers:

• Obtain legal advice from a competent real estate lawyer
  
  
• Call an accountant to discuss short sale tax ramifications
  

As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise on those consequences. Be aware the I.R.S. will consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.

Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.

• Call the Lender - You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You do not want to talk to the "real estate short sale" or "work out" department, you want the supervisor's name, the name of the individual capable of making a decision.


• Submit Letter of Authorization - Lenders typically do not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, title company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. The letter should include the following:
  -Property Address
  -Loan Reference Number
  -Your Name
  -The Date
  -Your Agent's Information


• Preliminary Net Sheet
  This is an estimated closing statement that shows the sales price you expect to receive and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your closing agent or lawyer should be able to prepare this for you if you do not know how to calculate any of these fees. If the bottom line shows cash to the seller, you will probably not need a short sale.


• Hardship Letter
  The sadder, the better. This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment. Lenders are not inhumane and can understand if you lost your job, were hospitalized or a truck ran over your entire family, but lenders are not particularly empathetic to situations involving dishonesty or criminal behavior.
  
• Proof of Income and Assets
  It is best to be truthful and honest about your financial situation and disclose assets. Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value. Lender are not in the charity business and often require assurance that the debtor cannot pay back any of the debt that it is forgiving.


• Copies of Bank Statements
  If your bank statements reflect unaccountable deposits, large cash withdrawals or an unusual number of checks, it's probably a good idea to explain each of those line items to the lender. In addition, the lender might want you to account for each and every deposit so it can determine whether deposits will continue.
  
• Comparative Market Analysis
  Sometimes markets decline and property values fall. If this is part of the reason that you cannot sell your home for enough to pay off the lender, this fact should be substantiated for the lender through a comparative market analysis (CMA). Your real estate agent can prepare a CMA for you, which will show prices of similar homes:
  -Active on the market
  -Pending sales
  -Solds from the past six months.


• Purchase Agreement & Listing Agreement
  When you reach an agreement to sell with a prospective purchaser, the lender will want a copy of the offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home protection plans or termite inspections.

Now if everything goes well, the lender will approve your short sale. As part of the negotiation, you might ask that the lender not report adverse credit to the credit reporting agencies, but realize that the lender is under no obligation to accommodate this request.

Please feel free to contact us for a non obligation short sale consultation to see how we can help
you. Toll free 1.800.941.2297

Source: http://www.about.com/

Jun-Sep, 07 Asking Price vs. Selling Price in Pasadena,CA

Source: RealMarketSnapshot.com

Fed Rate Cut May Spark Rally on Wall St.

By Joe Bel Bruno, AP Business Writer

Fed Cut to Interest Rates Could Bring Consumers Lower Borrowing Costs, Stock Rally

NEW YORK (AP) -- Wall Street players aren't the only ones with a lot riding on whether the Federal Reserve cuts interest rates on Tuesday -- Main Street could also see some pretty dramatic benefits.

Policy makers are widely expected to decrease short-term rates by up to one-half of one percentage point, a move big institutional investors have been clamoring for in recent months.

For the man on the street, a cut would lower credit card bills, make mortgages cheaper and perhaps inject enough confidence into the stock market to revive ailing 401(k) investments.

Economists will likely debate until the 11th hour what the Fed will do when it releases its decision Tuesday afternoon. Even those far removed from high finance are nervous about what could be the biggest decision the Fed has made in years.

"Customers have told me not to touch their loans until the Fed meets," said Darin Hardin, owner of San Clemente, Calif.-based Coastal Hills Mortgage Inc. "People have been assuming for the past six months that rates will be lowered, and nobody wants to make a move until some kind of event happens."

Hardin said his business has been slower in brokering mortgages in California's Orange County, one of the nation's hottest real estate markets. New calls for mortgages aren't coming in as frequently, and those looking to switch to fixed-rate financing from adjustable have been stalling.

A cut in interest rates would immediately make fixed-rate mortgages cheaper. Homeowners with lines of credit will pay less, and those "waiting on the fence to borrow" will have reason to pick up the phone, he said.

A whole host of other borrowings will also become cheaper as U.S. banks follow an interest rate cut by lowering their own prime rates. For those that qualify, loans spanning everything from automobiles to education will be affected -- as will the amount consumers are charged by credit cards issuers.

There's also the psychological impact a rate cut would have on the stock market, where the Dow Jones industrial average has plunged into volatility after hitting an all-time high in July. Traders have been cagey since then, sending the blue chip index bouncing around with triple-digit swings.

Wall Street pundits have pinned their hopes on a rate cut to stem the choppy market conditions, and send stocks higher. That would bring welcome relief in the short term to individual investors whose stock portfolios have fallen in the process.

"The whole thing with the stock market is perception," said Adam Hewison, president of ino.com, a financial Web site catering to individual investors. "We've had a five-year expansion in stock prices, and in the history of things, that's a long time before there's some kind of retrenchment. That has investors on edge."

While a rate cut would likely give the markets a short-term boost, whether its effects would be long lasting remains unclear. There are still a number of economic challenges facing individual investors, with some economists believing that the U.S. might be heading into a recession.

Though a cut might help boost mortgages, it might do little to help the slumping housing industry. Stocks might rally if the Fed delivers, but it won't help some of the underlying problems behind why corporate earnings are weakening.

"As far as rate cuts, when the Fed begins changing direction, there's a very short-run relief rally," said Tom Wilson, managing director of institutional investments at Brinker Capital. "But you have to keep in mind that they are cutting because there is something not right with the economy in one way or another."

Published September 15, 2007

It's the gated life for Paris Hilton

By Ruth Ryon, Los Angeles Times Staff Writer

Paris Hilton has a new home, and it's behind gates, not bars.

As the whole world knows, the hotel heiress, 26, wasn't keen on jail life after she was sentenced to 45 days for violating probation on an alcohol-related reckless driving conviction. She also learned that she valued her privacy.

So, soon after she returned to her home in the busy Sunset Strip area of the Hollywood Hills, she listed it for $4.25 million and purchased a home on a street less traveled for $5.9 million. The asking price was $6.25 million. Hilton bought in the Beverly Hills Post Office area and, as she desired, in a gated community.

Her new home was built in 1991 and has five bedrooms and six bathrooms plus separate guest quarters and an office in 7,400 square feet.

Hilton's former residence, built in 1926, has four bedrooms, although one was turned into a mega-closet. And no need to carry an iPod; there are speakers throughout the house, which sold quickly.

Judy Cycon of Prudential California Realty, Beverly Hills, represented the seller, and Mauricio Umansky of Hilton & Hyland, Beverly Hills, had the listing. Umansky is Hilton's uncle.

But how far is it from Moe's bar?After a thorough renovation, the Beverly Hills home of Al Jean, executive producer of "The Simpsons" on Fox TV and a writer-producer of "The Simpsons Movie," and his wife, television writer Stephanie Jean, has been listed at close to $3.3 million.

The couple bought another house closer to a school that they want their children to attend.

The Spanish-style house, built in 1933, has four bedrooms, four full bathrooms, two half-bathrooms, a vaulted entry, a chef's kitchen and a master-bedroom suite with a fireplace and a bathroom so sumptuous it would make Homer drool. Bathers can watch TV, and there is a chandelier.

The grounds have a swimming pool, and the house has a bonus room.

The home once belonged to actress Carroll Baker, who was nominated for an Oscar in 1957 for her work in the Elia Kazan-directed film "Baby Doll," written by Tennessee Williams.

Leah Lail of the Brill Group, Coldwell Banker, Beverly Hills East, has the listing.

A property with operatic historyThe Beverly Hills site of a home designed by John Woolf for Lauritz Melchior, a renowned Wagnerian tenor, has been sold for $9 million. Other owners of the house after Melchior included actress Jane Wyman and her then-husband, actor Ronald Reagan, and novelist Judith Krantz.

The Woolf house was torn down, and a seven-bedroom, 11,000-square-foot residence was built in its place in 1988.

The newer home, which is situated in a prime spot one block north of Sunset Boulevard, has a tennis court, swimming pool and spa, as well as two family rooms.

Orah Dayan of John Bruce Nelson & Associates had the listing, and Fariba Bolour of Sotheby's International Realty, Sunset, represented the buyers.

Griffin was once king of this hillActivity is brewing on what might be called "Merv's Mountain," a hilltop site once owned by Merv Griffin, now that a group of developers is moving toward buying the 157-acre Beverly Hills property for more than $100 million, area real estate sources said. The plan is to resell the land in parcels of 2.5-acre lots. Each parcel would sell for at least $20 million.

Previous owners of the parcel expected to build one home -- or palace -- on the property. The late Princess Shams Pahlavi, sister of the last shah of Iran, was one of those owners. Entertainment mogul Griffin was another.

Griffin, who died in August, changed his mind about building on the tract after grading 14 acres.

He sold the land to Herbalife founder Mark Hughes, who died in 2000 before getting a construction go-ahead.

mailto:ruth.ryon@latimes.com

Published September 9,2007

Housing to be key congressional focus next week

Full story available at Marketwatch.com

by Robert Schroeder, Marketwatch

WASHINGTON (MarketWatch) -- U.S. housing woes are set for a return to the congressional spotlight next week, with hearings planned about mortgages and subprime lending and action possible on a reform package for the Federal Housing Administration.

With more than two million loans expected to "reset" to higher rates over the next two years, lawmakers and Bush administration officials have been scrambling to address the weakened home market.

As soon as next week, the House could pass a bill that would boost the limit on loans that the housing agency may insure. The reform bill would also lower downpayment requirements on loans. Goldman Sachs analysts see the bill as likely to clear the House next week, and get through the Senate Banking Committee later this month or in October.

House Financial Services Committee Chairman Barney Frank said Tuesday an amendment he plans to offer next week would raise the limit on the size of loans that could be insured by the agency, with a provision that would allow more growth based on market conditions.

Meanwhile, Sen. Charles Schumer, D-N.Y., is planning a hearing about subprime lending issues for Wednesday.

Frank's committee is also planning a hearing, with Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson to testify. Scheduled for Thursday morning, the hearing will examine how to head off foreclosures.

On Aug. 31, President Bush urged lawmakers to reform the FHA and allow homeowners with good credit histories who are otherwise unable to afford their mortgage payments to refinance into FHA-insured mortgages.

Meanwhile, on Friday, Treasury Secretary Henry Paulson announced $27.3 million in grants to organizations that serve economically distressed communities. Paulson said the grants are intended to reach borrowers "who are likely to have trouble" and to help them keep their homes.

Robert Schroeder is a reporter for MarketWatch in Washington.

MLS Market Snapshot

Get this week local market conditions www.RealMarketSnapshot.com

Find an Open House this weekend

Use this link to find an open house

The ALL NEW California MLS

That’s right, it’s not a typo, the Southern California MLSAlliance has expanded into the statewide California MLSAlliance! MLSs from Southern California have joined forces with MLSs from Northern California to create this new statewide data-sharing system.

Check out the the new MLS here or visit www.Cal-MLS.com