New law gives San Diego homeowners some relief when they short sale their home.

July 25, 2011 By Leave a Comment
Senate Bill 458
Senate Bill 458 Signed into Law which gives San Diego homeowners some relief when they short sale their home.

All California and San Diego homeowners who are considering a short sale and wondering about the consequences of this decision can rest easier effective immediately.

Governor Jerry Brown just signed Senate Bill 458 into law. Senate Bill 458 expands upon previous short sale anti-deficiency laws.  The previous law (Senate Bill 931) allowed homeowners to sell their homes at a value less than their existing first mortgage value and the mortgage holder would accept the short sale as full payment of the obligation. That is, the first lien holder was required to waive the right to pursue a deficiency judgment against the seller.

The new law, Senate Bill 458, applies the same treatment to any secondary, or junior loans involved in the transaction. In other words, upon accepting the terms of the short sale, junior lien holders now agree to waive their right to pursue the deficiency judgment. The borrower cannot be required to owe or pay for a deficiency in a short sale.

Here’s what the California Association of Realtors® has to say on this late-breaking news:

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale.  A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

This is a huge coup for the California short sale world. Not only will it make the decision to participate in a short sale a little easier for some California short sale sellers to stomach, it will definitely also impact the balance of power when considering which is better… short sale or foreclosure.

This article courtesy of Melissa Zavala of Short Sale Expeditor www.shortsaleexpeditor.com  Your source for complete, professional Short Sale negotiation services.

Filed Under: Avalar San Diego's Recommendations, San Diego Real Estate Tips, sell real estate in san diego, Uncategorized Tagged With: , , ,

Carbon Monoxide Detectors are required to be installed July 1, 2011

July 5, 2011 By 4 Comments

Effective July 1, 2011 Carbon Monoxide Detector(s) will be required in most homes as a result of the Carbon Monoxide Poisoning Prevention Act that was passed earlier this year for California. This new law requires that carbon monoxide detectors to be installed in every “dwelling unit intended for human occupancy.”

Potential Carbon Monoxide Sources in the Home

Potential Carbon Monoxide Sources in the Homee

Every owner of a “dwelling unit intended for human occupancy” must install an approved carbon monoxide device in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage.

The applicable time periods are as follows:

  1. For all existing single-family dwelling units on or before July 1, 2011.
  2. For all other existing dwelling units on or before Jan. 1, 2013.

(Cal. Health & Safety Code § 17926(a).)

Sample Carbon Monoxide Detector

Carbon Monoxide Detectors must be installed by July 2, 2011

 

Common Questions & Answers

What is carbon monoxide?

Carbon monoxide is a gas produced whenever any fuel, such as gas, oil, kerosene, wood, or charcoal, is burned.  A person cannot see or smell carbon monoxide.  However, at high levels carbon monoxide can kill a person in minutes.

In addition, there are well-documented chronic health effects of acute carbon monoxide poisoning from exposure to carbon monoxide, such as lethargy, headaches, concentration problems, amnesia, psychosis, Parkinson’s disease, memory impairment, and personality alterations.  (Cal. Health & Safety Code § 13261.)

What is a carbon monoxide detector?

It is a relatively inexpensive device similar to a smoke detector that signals detection of carbon monoxide in the air.  Under the law, a carbon monoxide device is “designed to detect carbon monoxide and produce a distinct audible alarm.”  It can be battery powered, a plug-in device with battery backup, or a device installed as recommended by Standard 720 of the National Fire Protection Association that is either wired into the alternating current power line of the dwelling unit with a secondary battery backup or connected to a system via a panel.

If the carbon monoxide device is combined with a smoke detector, it must emit an alarm or voice warning in a manner that clearly differentiates between a carbon monoxide alarm warning and a smoke detector warning.

The carbon monoxide device must have been tested and certified pursuant to the requirements of the American National standards Institute (ANSI) and Underwriters Laboratories Inc. (UL) as set forth in either ANSI/UL 2034 or ANSI/UL 2075, or successor standards, by a nationally recognized testing laboratory listed in the directory of approved testing laboratories established by the Building Materials Listing Program of the Fire Engineering Division of the Office of the State Fire Marshal of the Department of Forestry and Fire Protection.  (Cal. Health & Safety Code § 13262.)

How many devices and where do I place them in the home?

This new law requires the owner “to install the devices in a manner consistent with building standards applicable to new construction for the relevant type of occupancy or with the manufacturer’s instructions, if it is technically feasible to do so” (Cal. Health & Safety Code § 17926(b)).

The following language comes packaged with carbon monoxide (CO) detectors:

For minimum security, a CO Alarm should be centrally located outside of each separate sleeping area in the immediate vicinity of the bedrooms.  The Alarm should be located at least 6 inches (152mm) from all exterior walls and at least 3 feet (0.9 meters) from supply or return vents.

Building standards applicable to new construction are as follows (overview summary only):

  • Section R315 et seq. of the 2010 edition California Residential Code (CRC) [effective Jan. 1, 2011] (applicable to new one-to-two family dwellings and townhouses not more than 3 stories and also where work requiring a permit for alterations, repairs or additions exceeding one thousand dollars in existing dwellings units):

Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

  • Section 420 et seq of the 2010 edition California Building Code (CBC) [effective Jan. 1, 2011] (applicable to other new dwelling units and also where a permit is required for alterations, repairs or additions exceeding $1,000 in existing dwelling units):

Installed outside of each separate sleeping area in the immediate vicinity of the bedroom(s) in dwelling units and on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

Are there any penalties for noncompliance with this law regarding installation of carbon monoxide detector devices?

Yes. A violation is an infraction punishable by a maximum fine of $200 for each offense. However, a property owner must receive a 30-day notice to correct first.  If an owner who receives such a notice fails to correct the problem within the 30-day period, then the owner may be assessed the fine. (Cal. Health & Safety Code § 17926(c).)

Can a buyer of a “dwelling unit intended for human occupancy” rescind the sale if the dwelling doesn’t have the necessary carbon monoxide detectors?

No.  However, the buyer may be entitled to an award of actual damages not to exceed $100 plus court costs and attorney’s fees.  (Cal. Health & Safety Code § 17926(d).)

When selling a home, the following language has now been added to the mandatory Real Estate Transfer Disclosure Statement that both seller and buyer sign:

Installation of a listed appliance, device, or amenity is not a precondition of sale or transfer of the dwelling. The carbon monoxide device, garage door opener, or child-resistant pool barrier may not be in compliance with the safety standards relating to, respectively, carbon monoxide device standards of Chapter 8 (commencing with Section 13260) of Part 2 of Division 12 of, automatic reversing device standards of Chapter 12.5 (commencing with Section 19890) of Part 3 of Division 13 of, or the pool safety standards of Article 2.5 (commencing with Section 115920) of Chapter 5 of Part 10 of Division 104 of, the Health and Safety Code. Window security bars may not have quick-release mechanisms in compliance with the 1995 edition of the California Building Standards Code.

Do landlords have any special obligations regarding carbon monoxide detectors?

Yes.  All landlords of dwelling units must install carbon monoxide detectors as indicated in earlier.  The law gives a landlord authority to enter the dwelling unit for the purpose of installing, repairing, testing, and maintaining carbon monoxide devices “pursuant to the authority and requirements of Section 1954 of the Civil Code [entry by landlord].”

The carbon monoxide device must be operable at the time that a tenant takes possession.  However, the tenant has the responsibility of notifying the owner or owner’s agent if the tenant becomes aware of an inoperable or deficient carbon monoxide device.  The landlord is not in violation of the law for a deficient or inoperable carbon monoxide device if he or she has not received notice of the problem from the tenant.  (Cal. Health & Safety Code § 17926.1.)

What are the symptoms of carbon monoxide exposure?

Flu-like symptoms which can include:

  • Nausea
  • Fatigue
  • Headaches
  • Dizziness
  • Confusion

If you are experiencing breathing difficulty,

  • Call 911 immediately.
  • Evacuate the premises.
  • Do not re-enter the premises until the problem is corrected.

If you are not experiencing flu-like symptoms and have concerns:

  • Ventilate the premises
  • Turn off all fuel-burning appliances

This information provice by Avalar San Diego Real Estate and portions are from

 the California Association of Realtors Publication

Filed Under: San Diego Home Buyer, San Diego Real Estate Tips, sell real estate in san diego Tagged With: , , ,

A Raving Fan of Team Gregory’s Service

June 2, 2011 By Leave a Comment


Click the link above and try not to smile. This is truly a very happy, Raving Fan of Team Gregory’s Real Estate service. The real estate prices are down, interest rates are down, there is controversy in government and the weather is undependable but our spirits should always be this happy.

Filed Under: San Diego Home Buyer, sell real estate in san diego, TeamGregory's and Avalar San Diego Newsletter Tagged With: , ,

Selling your San Diego property in this 90 degree winter weather

December 13, 2010 By 2 Comments

Selling your San Diego property in this 90 degree winter weather

Holiday activities and parties are everywhere at this time of year. If you are selling your San Diego property or if you are planning on putting it on the market, your celebrations may feel constrained by the need to keep your home ready for a showing at a moment’s notice. Your family’s favorite holiday decorations may have been minimized or replaced this year with less traditional winter decorations. Fortunately, your efforts to reach out to potential buyers could definitely pay off in the long run!

During the time leading up to the winter holidays and the coming New Years, many people are taking well deserved vacation time, kids are out of school and many families are refocusing their priorities on their home and family. There is a feeling of wellbeing that is not always present throughout the year. The arrival of the New Year brings a sense of starting over and strightening up one’s living conditions. Consequently, most sellers and brokers who have sold a home during the holiday season remember the experience as a positive one even though it brings anxiety.

In a normal market buyers are in short supply during this time of year, but some people have no choice but to purchase a home due to relocation or family changes. The incredible low interest rates have made a difference in this last half of 2010. The warm winter has followed some cold evenings so San Diego finally has some fall/winter colors on our trees. Owners who are selling their San Diego properties may need to be more flexible in their selling price and other areas of the negotiations. There are far fewer homes on the market during the winter holiday season. The net result of all these combined factors really depends on the home and the potential buyer. When your home offers the features and amenities that a potential buyer is looking for, you are more likely to sell it quickly in the winter than during the spring or summer buying season.

Your home may be looking its best this time of year. or blemishes might be hidden by your decorating and your front door is probably adorned with a festive wreath. You may have a beautiful tree adorning your front windows. Your home may smell festive with the scents of baking, pine, and other holiday aromas. There is no better time to show your home to potential buyers than when you already are paying careful attention to your home’s appearance. Think of it as doing half the work that you would need to do during the summer.

One trick for selling during the winter is to use incentives. If you can cover the buyer’s closing costs, or a portion thereof, you may attract potential buyers to your home by advertising this information. Some real estate agents advise their winter sellers to offer a “decorating allowance” (a.k.a., a cash bonus) for purchasing their home.

The best news for sellers who decide to place or leave their home on the market during the winter holiday season is that people rarely “browse” homes at this time of year. Those potential buyers who visit your home are serious about buying it and are often in a hurry to do so. Most buyers begin their home searches on the internet and they spend 2-3 weeks doing their research before beginnning their face to face contact with the properties. Buyers are more prepared than ever in history.

This simplifies your job as a seller. With serious buyers and an already festive décor, you are well on the road to selling your home!

Ask us for valuable insights about wintertime selling, as well as tips that can be useful for preparing your home for sale regardless of the season. We have experience with home sales throughout the year and we know what attracts buyers in your specific area.

Filed Under: San Diego Real Estate Tips, sell real estate in san diego Tagged With:

The Housing Market …What is the Future Outlook?

August 3, 2010 By 1 Comment

The Housing Market Report:
Current snapshot and future outlook

Is now still a good time to buy? Is a home still a good long term investment? Is there an end in sight and will the housing sector ever fully recover?

For prospective and current home buyers, these questions surely remain at the forefront during one of the most challenging housing markets we’ve faced in recent years. Knowledge is your best diagnostic tool and a big picture of different segments in real estate can help your clients get a better grasp of the current state of the industry. Read on for a summary of recent mortgage, home sales and new construction data and what these trends might indicate for the future.

Mortgage Rates
Good news came in June for home buyers eager to enter the buying market in the form of record low long term interest rates. In the last week of June, the rate for 30-year fixed rate mortgages averaged 4.69 percent while 15-year fixed rate mortgages averaged 4.13 percent, according to RealEstateABC.com’s Mortgage Interest Rate report. In July, Freddie Mac reported the national average for 30-year fixed rate loans at 4.56 percent (lowest rate in nearly 40 years), compared to 5.2% in July 2009.

And experts suggest chances are good that interest rates may remain steady or drop even lower, to help stimulate more home sales. Excess inventory creates a lot of competition among sellers and drives a buyer’s market of surplus choices and affordable home prices.

Home Sales and Home Prices

Existing home sales (completed transactions for previously owned single family homes, townhomes, condos and co-ops) continued to dip in June, falling at a rate of 5.1 percent since May to a seasonally adjusted annual rate of 5.37 million, according to the National Association of REALTORs (NAR).

The NAR reports on monthly home sales represent the total number of housing units that would be sold annually if the current rate were to remain fixed. NAR also reported a continued sales decline from May to June in nearly every region nationwide, except for the Northeast, which showed a growth of nearly eight percent to an annual level of 960,000. Home prices also remained steady, with the median existing-home price topping out at $183,700 in June, about 1 percent higher than this time last year.

Total housing inventory at the end of June is also up by 2.5 percent to 3.99 million existing homes for sale, which represents an 8.9-month supply at the current sales pace. Experts attribute the slow in home sales due to the recently expired federal tax credits.

Despite the onset of market fluctuations, total annual home sales are still on track to be higher than 2009 and conditions are becoming more balanced in most markets across the country. However, experts caution that a projected housing rebound would still move at a conservative pace given current challenges including high unemployment, low consumer confidence and strict lending standards.

New Construction
Perhaps one of the hardest hit sectors, housing starts plummeted to the lowest levels since October this year, dropping five percent from May to June. Most of the decline was due to a 20 percent drop in condo and apartment construction, while construction of single family homes only dipped 0.7 percent. The Commerce Department projects new home construction to be on pace for a seasonally adjusted annual rate of 549,000.

Thankfully, there’s a silver lining. Building permits (a gauge of future activity) increased 2.1 percent from May to June at an annual rate of 586,000. Depressed sales and low consumer confidence mean fewer construction opportunities, which usually fuels economic resurgence. According to the National Association of Home Builders, each new home built creates the equivalent of an average of three jobs a year and generates $90,000 in paid local and federal taxes.

During April, slightly less than 675,000 new homes were being built. Reports show that this number is less than half of what is necessary in order to meet the demand for growth of the U.S. population in the long term.

Filed Under: San Diego Home Buyer, San Diego Real Estate Tips, sell real estate in san diego
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