Marco Rufo

LOS ANGELES (July 15) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown on signing SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.

Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.

“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”

SB 458 contains an urgency clause making it effective upon signing.

Call Marco Rufo with questions 310.488.6914.

California Law Now Requires Carbon Monoxide Detectors

marcorufo — Sun, 10 Jul 2011 11:57:34 +0000

California Law Now Requires Carbon Monoxide Detectors

Owners of California dwelling units, especially rentals, that have (i) a fossil fuel-burning heater, appliance or fireplace (for example, a gas stove or water heater) or (ii) an attached garage, need to be aware of a new law passed in 2010 regarding carbon monoxide devices. Under newly-enacted sections 17926, 17926.1, and 17926.2 of the Health & Safety Code (part of Senate Bill No. 183), owners of all such properties (excepting properties that are, generally-speaking, owned by or leased to the government) must install carbon monoxide alarms by the following deadlines: (1) July 1, 2011, as to single-family dwellings, or (2) January 1, 2013, as to all other dwellings.

(The deadlines are subject to extension for up to 6 months if the State decides more time is necessary to make approved alarms available; if such postponement were made, the Department of Housing and Community Development must post a public notice on its website).

To satisfy the requirements of the new law, alarms must be approved by the State Fire Marshal. The State Fire Marshal’s web site maintains a listing of carbon monoxide alarms and detectors; it appears as though the alarms and devices on this listing meet the requirements of the new law, but this should be confirmed by owners. The new law imposes a $200 maximum fine on owners for each violation of the installation requirements, provided that a 30-day notice must be provided to cure the violation. Perhaps more important, however, would be the implication or presumption of negligence created by a violation of the new law in any case where persons or property are injured or damaged as a result of a carbon monoxide leak.

Health & Safety Code section 17926.1 covers requirements specific to rental units, including the owner’s (or owner’s agent’s) maintenance requirements. Also covered are permission-to-enter and device-failure notification requirements imposed on tenants. With the law now clear on the required presence and maintenance of carbon monoxide alarms in qualifying rentals, it is critical for any rental unit owner to meet all applicable requirements of this new law.

Palisades Is Second Most Expensive Housing Market in U.S., Report Says

marcorufo — Mon, 27 Jun 2011 21:31:03 +0000

What is a Pocket Listing and is Ethical?

marcorufo — Fri, 24 Jun 2011 18:47:54 +0000

A pocket listing is a property that doesn’t come onto the Realtor-funded multiple listing system until it’s already sold — a practice that’s rarely defendable. In fact, it’s looked down upon so much that your local MLS may have rules against it.

“pocket listings” do exist, but they are an unethical agent practice. A “pocket listing” is one which the agent keeps “in his pocket” and shows only to his best buyers. Since the agent has a fiduciary duty to get the highest price for the seller, he must publicize the fact that the house is for sale as widely as possible as fast as possible. If instead he only tells his favorite buyer to avoid another agent splitting the commission, he is acting against the interest of his client, violating his fiduciary duty to the seller. You should not deal with unethical agents who keep listings “in their pockets” either as a buyer or as a seller.

There’s no law against them, and even though most MLS rules require listings to be submitted within a certain time frame, those same rules usually permit the withholding of listings per a client’s written instructions. So pocket listings aren’t illegal, and even pass muster under MLS rules if authorized by sellers. If a seller wants a listing withheld from the MLS that’s his or her right.

The problem arises when listing agents don’t get informed seller consent to “pocket” a listing. Even in a hot market, the benefits of MLS exposure are hard to deny. A listing agent desiring a pocket listing should be upfront about this; some sellers will still be fine with pocket listings. But if your seller can’t see the value in keeping his or her property off the MLS, neither should you.

Short Sale Question & Answers

marcorufo — Fri, 24 Jun 2011 18:43:23 +0000

Short Sale Q & A

What is a real estate short sale?

A little-known alternative, once more commonly used in the real estate downturn of the early 1990’s is the “short sale,” which works like this: A homeowner falls behind on his or her mortgage payments, usually due to a job loss, rising debt payments, or both. Facing a situation in which the home value has fallen and cannot be sold for the amount of the mortgage owed. If the amount of the sale is for less than the amount owed on the mortgage, the lender gets the proceeds and discharges the remaining debt.

Also known as a real estate short pay-off or a pre-foreclosure workout, a short sale is an agreement with a lender to accept less than the amount owed by a borrower via a sale of the property to a third party.

What are the advantages of a short sale vs. a foreclosure?

While in both cases, short sale and foreclosure, the delinquent mortgage will negatively affect their credit rating, at least short sellers avoid having a “debt discharged due to foreclosure” on their credit reports. Mortgage and credit experts say that, after bankruptcy, having a foreclosure on your credit report is the worst result and will reduce your credit score by over 250 points. You could also have to wait up to several years to qualify for a mortgage at a reasonable rate.

Short sales show up on a credit report as a “pre-foreclosure in redemption” status and can result in a credit score reduction of 100 points or less or even complete being release all together. After the sale, the mortgage may show up as “discharged.” People who successfully complete a short sale may also qualify for a mortgage at a reasonable interest rate in as little as 18 months. So, if buying a home is a future goal, then a short sale is the better option for many families.

My mortgage payments are late and I may be facing foreclosure. Is the Short Sale option available to me?

We at Miramar understand as a homeowner unable to make your mortgage payment or dealing with the possibility of facing foreclosure can be a stressful experience and an emotionally painful time in your life. If you are currently behind on your mortgage payment – or predict that you will soon be unable to continue making your mortgage payments – you’re not alone: you do have an option.

We at Miramar will assist you to identify and implement the best possible short sale solution helping you to avoid foreclosure. After a thorough review of your situation by one of our Certified Short Sale Specialists, we will work your lender to come up with the appropriate solution. Miramar will diligently negotiate to secure a fair and equitable solution with your lender.

Will the Short Sale cost me anything?

There are no out of pocket upfront fees associated with the short sales. The borrower’s current lender usually pays for the real estate services provided.

What criteria must I meet to be considered in a “hardship” situation?

A hardship situation is one that is the result of some extenuating circumstance that forces the borrower into a position where they can no longer afford their mortgage payments. While every situation is different, some frequent examples of hardship include:

Decrease in the value of the home
Unemployment or loss of primary income source
Inability to work due to health crisis
Mounting medical expenses
Employment relocation
Failure of business
Bankruptcy
Death of spouse or significant other
Divorce or separation

What do I need to do to get started?

In addition to the homeowner proving hardship, lenders require a specific set of supporting financial documents to consider a short sale. Contact Miramar today and one of our Certified Short Sale Specialists will help you get started.

There are many more questions regrinding Short Sales; please give us a call at 310-488-6914 there is no obligation!