What Improvements Will You Get Back on Resale?

Home improvements that boost resale value
When deciding which home improvements to make, many homeowners consider the amount of resale value the improvement may or may not make and compare that against the cost of the renovation. Homeowners concerned with making home improvements that will pay off when it’s time to sell the property, should consider the following tips.

Making sense of the story

• The first improvement/repair homeowners should consider are those that impact the home’s basic structures and systems. Potential home buyers generally do not want to face expensive repairs, and if items such as the foundation, roof, air conditioning, water heater, or other basic structure need to be fixed, the property will be considered a fixer-upper and its market price will be discounted accordingly.
• Some minor replacements will produce big results for minimal cost. Replacing and coordinating bathroom and kitchen hardware and fixtures are generally inexpensive, but tend to make a big difference. The same can be said for getting rid of any dated finishes, such as old wallpaper and brass light fixtures.
• Homeowners who don’t know when or even if they will be able to sell their home are advised to choose home improvement projects carefully. Unless the home is located in an upscale neighborhood and the property already is immaculate, owners can skip expensive upgrades – such as remodeled bathrooms – and focus on the fundamentals.

Read the full story

My state association has great information for Realtors to pass on to the consumer. I have been a state director since 1993 which keeps me updated on current laws, contracts and also allows me to be part of decision making on many issues that arise on our committees. Below is information I received from the California Association of Realtors regarding the timeline for foreclosure on owner occupied 1-4 unit properties.

When a real estate transaction involves a property in foreclosure, knowing the foreclosure timeline helps you as the real estate agent to assess whether you have enough time to close escrow before the foreclosure sale. Starting September 8, 2008, California has a special foreclosure timeline for loans originated between 2003 and 2007, inclusive, which are secured by owner-occupied residences.

Indeed, loans involved in short sales are likely to be owner-occupied loans from the years 2003 to 2007, which was the heyday for subprime lending.

The special foreclosure timeline does not apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations. The special foreclosure timeline will remain in effect until January 1, 2013. (Cal. Civ. Code § 2923.5.)

FORECLOSURE TIMELINE FOR OWNER-OCCUPIED REAL PROPERTY LOANS (made from 2003 to 2007)

The approximate minimum time frames for the non-judicial foreclosure of owner‑occupied real property loans made from 2003 to 2007 are as set forth below. In California, most lenders elect to foreclose non-judicially by conducting trustees' sales, not by judicial foreclosure.

Pre-Foreclosure Period
A lender may initiate the foreclosure process when a borrower defaults on a loan, such as by missing a mortgage payment. However, a slight delay may not justify acceleration and foreclosure by the lender. Hence, in practice, lenders generally wait a few months after a missed payment before starting the foreclosure process.

Day 1: Lender Contacts Borrower
For owner-occupied loans from 2003 to 2007, a lender initiating the foreclosure process must generally contact the borrower by phone or in person to assess the borrower's financial situation and explore options for avoiding foreclosure. During the conversation, the lender must inform the borrower of the right to meet with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency.

Day 31: Filing of Notice of Default
For owner-occupied loans from 2003 to 2007, the lender may file a notice of default 30 days after contacting the borrower to explore options for avoiding foreclosure. The notice of default must be filed in the county where the property is located and a copy must be mailed within 10 business days after recordation to the borrower and all other persons who have requested such notice. The notice of default informs the borrower of the default. It must also include the lender's declaration that it has contacted the borrower to explore options for avoiding foreclosure, tried with due diligence to contact the borrower, or the borrower has surrendered the property.

Day 121: Filing of Notice of Trustee's Sale
Three months after the filing of the notice of default, the lender may record a notice of trustee's sale setting forth the date, time, and place of the upcoming trustee's sale. Because of the gravity of a notice of trustee's sale, it must be widely disseminated. The notice of trustee's sale must be recorded, posted, mailed to the borrower and others, as well as published once a week for three consecutive weeks in a newspaper of general circulation.

Day 145: Deadline to Cure Default
Up to five business days before the trustee's sale, the borrower may reinstate the loan by curing the default or paying the missed payments plus allowable costs. After the reinstatement period expires, the borrower still has the right to redeem the property by paying the entire debt, plus interest and costs (not just the arrearage), before the bidding begins at the trustee's sale.

Day 152: Trustee's Sale
Although California law allows a trustee's sale to take place 20 days after the posting of the notice of trustee's sale, lenders customarily wait at least 31 days instead to help protect against federal tax liens. At the trustee's sale, the property is sold through a public auction to the highest bidder. Title is transferred to the successful bidder by trustee's deed.

USING THIS FORECLOSURE TIMELINE
A foreclosure timeline helps you as a listing agent ascertain whether you have enough time to market and sell the property as a short sale. Depending on the stage of foreclosure the homeowner is in ("Foreclosure Stage"), the chart below gives you the total time frame you have, at a minimum, to sell a property as a short sale before the trustee's sale occurs ("Minimum Time Left to Sell").

Foreclosure Stage
Minimum Time Left to Sell
Homeowner just missed making mortgage payment for the first time.
About 6 to 8 months total

Homeowner has just been contacted by the lender to explore options for avoiding foreclosure.
About 5 months total

Notice of default has just been filed.
About 4 months total of trustee's sale has just been filed.

Date of trustee's sale is on notice of sale
As an example, if a notice of default has just been filed, you have a minimum of about four months to sell the property before the trustee's sale may occur. That's four months not only to find a buyer, but also to get the lender to approve the short sale and close escrow. The short sale lender may agree to postpone the trustee's sale in some situations (such as when there's an accepted offer), but be sure to get any agreement for a postponement in writing.

Consumers Do Value Realtors!

I have had the pleasure a couple of times to hear a presentation from Bob Hale, CEO of the Houston Association of Realtors HAR.com . He spoke about Houston's great website and how consumers have flocked to their website to get wonderful real estate information and also to find Realtors to represent them in a transactions. The Houston Association of Realtors is the most progressive group of Realtors that I have seen in my 24 years as a real estate broker. They have knocked down the fears that if we give the Public more information then we as Realtors will not be needed anymore. In fact, the opposite has happened in Houston with their great website.

The Boards of Directors of the Contra Costa and Bay East Associations of REALTORS® have signed Statements of Intent to participate in a statewide Multiple Listing Service (MLS) being created by the California Association of REALTORS®. Both organizations have been working with neighboring MLSs for over three years to expand access to property information for their members and believe this approach is the best long term solution.

A solution to the problem of having several MLSs serving a local region has been long sought by larger real estate brokerage companies. They typically must join several MLSs if their business serves more than just a small, local area. The real winner with this initiative, however, is the general public, who would have the ability to access statewide information through their real estate agent

"A statewide MLS would not only give real estate agents and brokers access to comprehensive property information, it would also give them a standard MLS database with a single set of rules, policies and data display requirements" according to the Bay East Association of REALTORS® president. "This is something the real estate community has been seeking for many years, and we encourage our neighboring REALTOR® associations and MLSs to participate in the statewide MLS initiative" .

It is anticipated that under the statewide MLS, the local Associations will be the point of contact for members to subscribe to and participate in the California MLS, and, in turn, enhance the level of MLS services to agents and brokers.

While a statewide MLS in my opinion is a step in the right direction, I truly hope that California Realtors can someday be as progressive as Houston and create a website that leads us to the future as Houston has done! California Realtors need to remove their fears and plunge into the future to give the consumers the service and information possible in order for them to make good decisions in purchasing or selling a home!

See for yourself HAR.com !!!