The April 30 deadline created a surge of home sales in April. Let’s take a look at the Los Angeles real estate market for June.

Caution: In all of these Los Angeles neighborhoods, housing quality and size, as well as lot size, vary greatly. Therefore, the highest and lowest sold prices often reflect which particular houses sold and are not generally indicative of an increase or decrease in overall value. So I caution against reading too much into the following statistics:

Beverly Hills Real Estate Sales Statistics - Single Family Homes

Beverly Hills Post Office Real Estate Sales Statistics - Single Family Homes

Bel Air Real Estate Sales Statistics - Single Family Homes

Hollywood Hills East Real Estate Sales Statistics - Single Family Homes

Hollywood Hills West Real Estate Sales Statistics - Single Family Homes

West Hollywood Real Estate Sales Statistics - Single Family Homes

Learn more about Los Angeles real estate by visiting EileenWalshRealtor.com.

WOW! One of only a few homes on Upper Franklin Canyon Drive with dead-on open canyon views! Rare opportunity to own adjacent to Franklin Canyon park, providing unobstructed views and unparalleled privacy. Enjoy magnificent vistas from every room in this casually sophisticated home. The entry level features a spacious open floor plan perfect for entertaining. Relax outside on those warm summer evenings on the large upper level deck with the serenity of the park below you. Two spacious + light-filled bedroom suites are on the lower level, each with their own bath, large closet and access to the lower level deck. A third bedroom + bath on the entry level is perfect for a guest bedroom or office. Stroll to the lake and hiking/biking trails in the park or to Tree People or Wilacre Park across Mulholland. Enjoy peacefulness and calm in the midst of L.A. yet minutes to the Valley and Beverly Hills. Why not have it all?

• decrease the amount of their monthly mortgage payments

• reduce the duration of their current loan, or

• provide money for home improvements or other expenses. Interested? Read on…

Know Your Numbers

Before you rush into refinancing your Los Angeles real estate, be aware of two key strategies that will benefit you. The first is KNOWLEDGE. Carefully investigate the pros and cons of different refinancing features such as interest rate, closing costs and fees, and the term of the loan. Determine the purpose of your refinancing and the amount of savings and/or money you hope to gain from it. Examine your personal financial situation--now and in the future--to identify the best option for you.

Since refinancing is all about numbers, you will want to see figures in black and white before beginning the refinancing process. Online sources allow you to input your information re: the amount of the mortgage, the interest rate, the term of the loan, and fees to calculate your monthly expenditures and savings.

Research the advantages and disadvantages of a fixed rate and an adjustable rate mortgage (ARM).  A fixed rate is usually for a term of 15 or 30 years, and the interest rate remains the same for the term of the loan. An ARM means that after 3 or 5 years your interest rate can change (usually going higher). If you are planning to stay in your Los Angeles real estate for only a short time, an ARM may be beneficial for you.

If you currently have an ARM which has a relatively low rate of interest, but you are concerned about future increases, you might consider converting your current loan into a 15 or 30 year fixed rate mortgage. Or, since the difference between a fixed 15 year and a fixed 30 year interest rate is significant, you could save thousands of dollars by shortening the life of your present loan, often with only a slight increase in the amount of your monthly payment.

Compare Options

The second most important strategy is COMPARISON SHOPPING. It is imperative that you compare the rates and terms of several mortgage lenders. Again, online sources such as can provide you with multiple loan quotes. Beware of high refinancing fees or borrowing more than you need. Ideally, you should thoroughly investigate the rates, terms, and features of at least three lenders.

The key to finding the best refinancing situation for you is to obtain and understand your current mortgage information, assess your present and future financial status and needs, and comparison shop. You will most likely find that marketing conditions have made this a perfect time to refinance your Los Angeles real estate, thus allowing you to escape high mortgage payments and/or make financially sound decisions for the future.

The primary focus of feng shui is the positive flow of energy, which contributes to the creation of harmony in life. Integral components of the philosophy are the five elements of fire, earth, water, metal, and wood, and each of these is enhanced by color selection and use in your Los Angeles home as follows:

• FIRE - Passion and high energy. These strong colors include red, orange, purple, pink, and bright yellow.

• EARTH - Nourishment and Stability. Beige and various earthy sand colors.

• WATER - Ease, freshness, and abundance. Blue and Black

• METAL - Clarity and preciseness. Grey and white.

• WOOD - Health and Vitality. Brown and Green

Other feng shui principles to follow include:

1. The clearing of unnecessary furnishings and objects:

In feng shui, less is more. Believing that clutter impedes the flow of energy, feng shui proponents suggest avoiding big pieces of furniture and removing most plants, photographs, and personalize items. Most homes will benefit from the absence of about 1/3 of their current furnishings.

2. Abundance of light:

Ample lighting is conducive to good energy and should be generously provided in your Los Angeles home to provide a sense of spaciousness. Natural light is best, but warm, soft artificial lighting is acceptable. A dimmer switch is strongly suggested for your lights.

3. Outside appearance:

A solid, strong front door is essential, as is an attractive and clutter-free entranceway. Your landscaping should be well-maintained, and your house numbers clean and easily visible. A well-lit entrance is also a must! 

4. The feng shui “trinity”:

The bathroom, kitchen, and bedroom are of vital importance since there is a powerful connection among the three areas which promote health and well-being.

• In the bathroom you should try to create a spa-like, relaxing atmosphere through the use of lighting and mirrors, which give the room a sense of space/

• In the kitchen unadorned countertops in colors harmonious with the cabinets and walls are a necessity. Use fire and wood tones, and avoid those associated with water. Lighting under the cabinets invites a good chi, as does a basket of fresh fruit or flowers.

• In the bedroom, the bed should have a solid headboard, be approachable from both sides, and be flanked by two end tables. It is best if the bed does not face the door to the room. The walls should be in earth colors, and televisions, computers, and exercise equipment should not be present.

Good feng shui means positive energy, sure to help with the sale of your Los Angeles home. Who doesn’t want the hope of good health, happiness, and prosperity?

        1. Shop around for the best value. Check online for quotes from at least three reputable agencies. Be aware that some companies offer a discount of 30% to 40% if you buy online. Other possible discounts can result from insuring both the home and the contents or by insuring your home and your car with the same firm.

        Also know the replacement value of your home, taking into consideration any unique features that will be expensive to replace. Keep in mind probable inflation increases at renewal time. Does your insurer automatically adjust your coverage or do you have to request the change?

        2. Make periodic updates to your Los Angeles home or property. Ways to reduce insurance costs include the following:

A) replacing the existing heating system to one which is safer and more cost-efficient.

B) keep plumbing in good working order and protect it from freezing

C) replace fuses. Inspectors are looking for circuit breakers and a safe wiring system

D) install fire detectors or even a central alarm system. Be sure to keep a record of all repairs/replacements and inform your insurance company of each one.

        3. Maintain the building and grounds. Regular repainting or installing siding is essential to protecting your Los Angeles home from moisture damage. Hire professionals to clean any chimneys and check for termites. Repair unsafe sidewalks and remove dangerous tree roots. Again, keep your insurance company current on your efforts to eliminate hazards.

        4. Consider tenant-based liabilities. The type of dog you allow on your property influences your insurance rate, as does permitting smoking on the premises. You may also want to specify acceptable locations for outdoor grill use and make renters aware of their responsibility to cover damages caused by them and the need for renters’ insurance.

By following these tips and consulting with your insurance representative, you should be able to lower your premium, avoid cancellation, and stay off the industry’s “bad list.” Also think about raising your deductible amount and avoid making too many small claims to keep your premium costs down.

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Basic terminology;

•     Fixed rate--The interest rates do not change during the life of the loan, thus allowing you to know the amount of your payments.

•     Adjustable rate (ARM)--the interest rate is tied to certain indexes plus a margin and can fluctuate up or down, thus affecting each payment,

•     Step--the interest rate and monthly payment remain the same for a specified period of time. After that the interest will change to the prevailing rate and will remain there for the duration of the loan.

•     Balloon--a loan payment that expands after a certain amount of time. Basically it functions similarly to a fixed rate mortgage in the earlier months/years with a delayed steep increase at the end,

The following information, courtesy of Mortgages.Interest.com, outlines the type of mortgage, the loan characteristics, and the situations most appropriate for each one. If, for instance, you plan to live in your Los Angeles home more than 10 years and desire stability in payment amounts, then a fixed rate mortgage is for you. If, however, your finances are currently strained, but you know that in 5 to 10 years your monetary situation will improve or that you will most likely move within 10 years, then an ARM or balloon mortgage may be better for you. Being familiar with these options allows you to discuss them intelligently with your real estate agent and/or lender and then select the type which best fits your circumstances.

 Fixed rate mortgage (30, 20, 15, 10 years)

• Interest rate & monthly payment remain the same for the entire term of the loan
• plan to live in property more than 10 years
• like total payment stability

0/1 year adjustable rate mortgage

• Interest rate & monthly payment remain the same for 10 year
• Starting the 11th year, interest rate adjusted every year, so payment is subject to change every year for remainder of loan
• plan to live in property more than 10 years
• like initial payment stability, can accept later changes OR
• plan to move within 10 years
• want loan to remain in force in case plans change

7/23 (2-Step) or '30 due in 7' mortgage

Interest rate & monthly payment remain the same for 7 years

• Conversion option: On the 8th year, interest rate adjusted to reflect prevailing interest rates, resulting payment will remain the same for remainder of loan
• plan to live in property more than 10 years
• can tolerate one payment adjustment OR
• plan to move within 7 years
• want to remain in force in case plans change

7/1 year adjustable rate mortgage

• Interest rate & monthly payment remain the same for 7 years
• Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan
• plan to live in property more than 7 years
• like initial payment stability, can accept later changes OR
• plan to move within 7 years
• want loan to remain in force in case plans change

7 year balloon mortgage

• Interest rate & monthly payment remain the same for 7 years
• At the end of 7 years, loan is due in full. Borrower must refinance into new loan at prevailing interest rates
• plan to live in property more than 7 years
• are willing to refinance at prevailing market rates OR
• plan to move within 7 years
• like payment stability

In addition, there are variations of the ARM, step, and balloon mortgages which differ primarily in the duration of the loan and of the planned residency.

FHA Loans

Another good source of information for first-time Los Angeles home buyers is the Department of Housing and Urban Development (HUD), an agency which oversees FHA loans. This type of loan is particularly useful if you have little money for a down payment, less than great credit, or large monthly bills. An FHA loan requires as little as 3% down (and it can be a gift from a relative or friend). In terms of your credit rating, the FHA is primarily concerned that for the past two years you have paid bills in a timely manner and have been steadily employed. With FHA you have to wait only two years after declaring bankruptcy, and your debit-to-credit ratio can be higher than for a conventional loan. You can qualify for an FHA loan if your monthly payments are no more than 43% of your income, and, as with conventional loans, you can choose from many types.

Of course, there are some negatives to consider before taking on an FHA loan. Interest rates generally run about 1/8 of a percentage point higher than conventional rates, but the real disadvantage of an FHA loan is that the borrower must pay an up-front insurance premium of 1.75% of the mortgage if the down payment is less than 20%. This cost can, however, be added to your total loan amount.

So there you have it--an easy-to-understand guide to mortgage types. As always, you should feel free to contact me anytime with questions. I am glad to recommend a number of outstanding mortgage lenders if you are interested in talking with one.

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There is, however, a painless way to lessen the angst and allow you to cope well (maybe even enjoy) the relocation process--and that is organization. While you may be proficient at researching and hiring a moving company and finding a reliable Realtor to sell your current residence and help you find the perfect Los Angeles home, there are numerous “small” steps you can take to eliminate unpleasant surprises later on and to make the process go more smoothly.

FINANCES: To alleviate any concerns you may have about the financial ramifications of living in a new city, you can compare the cost of living in two places by visiting HomeFair.com. This site will help you calculate how far your salary will go in your new location.

SCHOOLS: HomeFair.com also provides pertinent information about school systems throughout the U.S. Here you can discover student/teacher ratio, instructional costs per pupil, special programs, number of students going on to higher education, etc. You can also Google the board of education in your new city for information.

AMENITIES: The Chamber of Commerce can help you learn about religious facilities, cultural opportunities, parks and outdoor activities, hospitals and health care availability, and a myriad of other questions you may have--perhaps adult education

LOCAL REGULATIONS: You should investigate in advance property taxes and/or local assessments. Learn about average utility charges, trash/recycling rules and facilities, and parking restrictions in the area of your Los Angeles home.

TRANSPORTATION: Do you require public transportation? Does the new location offer mass transit? Is traffic congestion a problem? Best to be forewarned in this area. Go online to contact the municipal/governmental offices or the Department of Transportation in the new location.

MISCELLANEOUS: Make arrangements in advance to get legal documents and school and medical records before you leave your present location. Also, if your current bank does not have a branch in the new city, look into setting up a new bank account before you actually move. Begin now to fill out change of address cards to send to magazines, credit card companies, etc. It’s so much easier to do this before moving!

While your move to your new Los Angeles home may necessarily be an exciting adventure, by eliminating worries of the unknown and becoming familiar with your new surroundings in advance, you can anticipate and actually look forward to beginning a new phase of your life.

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Be patient. You’re getting close to the finish line and will soon be the owner of your first Los Angeles home. Just a few more steps to go…

1. Homeowner’s insurance policy

Adequate homeowner’s insurance is a requirement of all lenders, and it is certainly in your best interests to protect the investment you’ll be making in your Los Angeles home. To find the policy that is right for you, you should shop around for the best value. Eileen can refer you to some insurers. You can also check online for quotes from reputable agencies. Be aware that some companies offer a discount of 30%-40% if you buy online. Other possible discounts can result from insuring both your home and the contents or by insuring your home and your car with the same company. Your insurer can also advise you if you need additional coverage, such as flood or fire coverage, as many properties in Los Angeles do. Know the replacement value of your home, taking into consideration any unique features. Think about probable inflation increases at renewal time. Will your insurance agency automatically adjust your coverage, or will you have to request a change?

2. Preparations before closing

As the closing date approaches, Eileen will check with your lender to make certain all necessary documents are in order and are being prepared. You will want to contact utility services such as gas, electric, water, cable, and telephone to set up services in your name for after the date of the close. 

3. The walk-through

You are entitled to a walk-through inspection of the property in the final three days before the close. This is your final chance to make sure that all conveyed items are present, there is no new damage, agreed-to repairs have been completed, and the home is in good working order. Items to be checked out are numerous and include the exterior of the home (grading, roof and gutters, garage, siding, paint, concrete, brickwork, doorbell, e.g.) as well as the interior (lighting and fans, appliances, toilets, heating and cooling systems, faucets, electrical outlets, thermostat, fireplace, etc.). The house should be empty, except for conveyed items, and “broom swept“ clean. If any problems are discovered, Eileen Walsh will notify the seller and request repairs or monetary compensation for these items. Eileen will be present at the walk through and you are entitled to be there as well. The seller's agent will also be present.

4. And finally…the closing!

You should have recently received a settlement statement listing all the costs you’ll be required to pay at the close, such as an escrow deposit for taxes and insurance. In most cases you’ll be required to bring a certified check and a photo ID with you to the escrow office. The escrow officer will walk you through all the paperwork you'll need to sign. After all the paperwork is signed, you wait a day or two for the funds to transfer and your ownership to record at the county registrar's office. Once the recording is completed, escrow will call Eileen to announce the recordation. Eileen will then deliver to you the keys to your NEW HOME!

 Congratulations! You are now a first time home owner!

"Congress late Wednesday night extended the deadline by three months for a popular home-buyer tax credit that has helped fuel the real estate market in recent months.

The extension is only for those buyers who signed a purchase contract by April 30 and need extra time to close their deals. The deadline to close was Wednesday and the extension will push that deadline to Sept. 30. The incentive offers up to $8,000 for certain buyers.

Real estate brokerage offices and mortgage lenders have been backlogged with the number of people trying to close their deals by the Wednesday deadline, according to the National Association of Realtors, a group that lobbied heavily for the extension. The group estimated that the extra time would assist some 180,000 people nationally and 17,700 Californians who qualify for the credit but did not appear as if they would meet the Wednesday deadline to close their deals.

Syd Leibovitch, president of Rodeo Realty in Bel-Air, said the extension would help people in Southern California who qualify for the incentive but whose deals have been delayed from closing through no fault of their own.

“It’s fair, because you have people in short-sales transaction where the escrows take a lot longer than you would think,” he said. “Most of the delays are because of lenders taking a little longer to get loans, or getting approval from short sales.”

The federal tax credit was created in 2008 by the Bush administration as a $7,500 incentive for first-time purchasers, who were required to repay the money in a series of installments. Congress increased the amount to $8,000 in February 2009 when it passed the economic stimulus package and waived the repayment requirement. As an initial deadline for the credit loomed last November, Congress extended and expanded it to include as much as $6,500 for some current homeowners.

The Realtors group in Washington estimates that a total of 4.4 million people have received the credit since it was made nonrefundable last year. That includes 2.9 million first-time buyers and 1.5 million repeat buyers, the group said."

PART III

Okay, you’ve made your lists of "must have” and “would be nice” features, and you’ve identified desirable neighborhoods with the schools and amenities that meet your needs. Now it’s time to seriously shop for your first-time Los Angeles home.

Before you even step outside to begin the search, Eileen Walsh will e mail you listings which meet your criteria, and you can “visit” many of them online via a virtual tour. You can also go to the local MLS via this website so you can identify homes on your own. Once you have narrowed down your choices, Eileen Walsh will arrange for you to look at--in person-- your selected properties. A few bits of advice here:

1. Take notes on each home you tour. Too often individual details blur after you’ve seen four or more houses in a day.
2. Look past the owner’s furnishings and décor. Concentrate on the features you have identified as important and try to picture yourself actually living in the space.
3. If you have decided that you don’t need a “move-in ready” residence, look at the potential of the property. Would simple cosmetic changes make a considerable difference?
4. Listen to both your head and your heart. Sometimes a property really does “speak” to you, and you know you have found your new home.

Making An Offer

Now it’s time to make an offer! Eileen will provide you with comparable prices (comps) of similar homes which have recently sold in the neighborhood to help you decide how much you are willing to offer. She will prepare a contract which will include price; amount of down payment and deposit (earnest money); your financing arrangements; inspection rights; conveyance of any appliances, window treatments, furnishings, etc.; the close of escrow date; and any contingencies you might want to add.

Once Eileen presents your offer to the seller, negotiations may begin. The seller may accept your offer or may counter your offered price or any other part of the contract, and you may, in turn, counter such requests. The goal is to reach an agreement that makes both you and the seller happy. No one wants to feel that they "gave in" more than the other party. Keep in mind that every time you counter instead of accepting, the deal is now out of your hands and in the hands of the seller alone, because when you counter you are now "making an offer" that the seller can simply walk away from. So take your counters very seriously.

Home Inspection

More often than not, however, an agreement is concluded and you will quickly proceed to having a home inspection. Eileen can arrange for the inspection and can advise you as to any other inspections which are standard in your area. She will also advise you on how to handle any negative issues which arise as a result of the inspection process, like finding a faulty roof or plumbing. You'll have to decide if you will ask the seller to fix any problems or issue you a credit with respect to the problem. This is a very touchy part of the negotiation process and Eileen will help you with this.

What‘s next? Preparation for your closing, a walk-through of the property, and then the close of escrow! Watch this blog for the final installment of this series.

Los Angeles had 88,688 foreclosure homes with 14,203 new foreclosure homes in May 2010. The average price of a Los Angeles home was $472,227 and the average sales price of a foreclosed home was $307,819, according to RealtyTrac.com. A $164,409 savings.

Los Angeles Foreclosure Activity and Home Price Index

There were 14,203 foreclosures in May while price appreciation was 0.00%.

Los Angeles County foreclosure activity is based on the total number of properties that receive foreclosure filings - default notice, foreclosure auction notice or repossession notice - each month. Home price appreciation is based on month-over-month percentage change of the Home Price Index. The Home Price Index is calculated from home sales records.  

Los Angeles Foreclosure Geographical Comparison

Los Angeles foreclosures were 0.17% above national statistics and 0.12% below California numbers.

Los Angeles Foreclosure Activity by Month

The number of bank-owned properties increased from 2,857 to 2,652 in May. Pre-foreclosure acitivity dropped from 5,721 properties to5,021. The number of auctions also increased from 5,900 to 6,530.

Are you or someone you know behind on your mortgage payments and facing a foreclosure? You do have options. A short sale may be the answer to saving you, your family and your home. I am a Certified Distressed Property Expert (CDPE). Give me a call for a private consultation. 

Have questions about Los Angeles real estate? Ask Eileen!

Basic Steps for First-time Los Angeles Home Buyers, Part II

Part 1 of this four-part series dealt with analyzing your financial situation, getting prior loan approval, and determining your real needs anddesires in a first home. All that having been accomplished, you will now want to look for a mortgage and decide which is the most advantageous for you.

As with any major purchase, you will want to shop around for the best deal. Contact several lenders. Eileen can refer you to a number of qualified lenders. You should also familiarize yourself with mortgage types, terminology, and options. I can help you with this mission, but it would be wise to also check the internet. Keying in "First-time home buyer" or "mortgage assistance" will result in innumerable informative sites, a wealth of information for you to consider, and, most likely, a list of questions for you to ask Eileen and your potential lender.

Mortgages

For help in determining which type of mortgage is best for you, check the chart found at http://mortgages.interest.com/content/first. In an easy-to-read format, the characteristics and suitability of many types of loans (fixed rate, step, balloon, adjusted rate --ARM) are simply and clearly explained. If, for instance, you plan to live in a Los Angeles home more than 10 years and desire stability in payment amounts, then a fixed rate mortgage is for you. If, however, your finances are currently strained, but you know that in 5 to 10 years your monetary situation will improve or that you will most likely move within 10 years, then an ARM or balloon mortgage may be better for you. Being familiar with these options allows you to discuss them intelligently with your lender so you will be able to select the type which best fits your circumstances.

First-time Home Buyers

Another good source of information for first-time home buyers is the Department of Housing and Urban Development (HUD), an agency which oversees FHA loans. This type of loan is particularly useful if you have little money for a down payment, less than great credit, or large monthly bills. An FHA loan requires as little as 3.5% down (and that can be a gift from a relative or friend). In terms of your credit rating, the FHA is primarily concerned that for the past two years you have paid bills in a timely manner and have been steadily employed. With FHA you have to wait only two years after declaring bankruptcy, and your debit-to-credit ratio can be higher than for a conventional loan. You can qualify for an FHA loan if your monthly payments are no more than 43% of your income, and, as with conventional loans, you can choose from many types.

Of course, there are some negatives to consider before taking on an FHA loan. Interest rates generally run about 1/8 of a percentage point higher than conventional rates, but the real disadvantage of an FHA loan is that the borrower must pay an up-front insurance premium of 1.75% of the mortgage if the down payment is less than 20%. This cost can, however, be added to your total loan amount.

When you have done all of your homework and are ready to actually apply for a mortgage, be sure that you have all the figures and paperwork required by the lender--and send all that to the lender. You’ll most likely need the social security number of each borrower; copies of bank account statements for the past 6 months; evidence of any other assets; a recent paycheck stub showing your earnings; credit card account numbers and the amount due on each; account numbers and balances due on outstanding loans; copies of income tax filings for the past two years; and a contact who can verify your employment. It‘s quite an extensive list and will take some time to put together. Be sure to check with the lender to see if anything else will be required.

As always, to avoid stress, financial strain, and even real estate lending scams, such as bait and switch, while purchasing your Los Angeles home, be armed with accurate information and heed the sound advice of your trusted real estate agent, Eileen Walsh.

Coming next!! Part III--finding your perfect first home, making an offer, and preparing for the closing.

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PART 1

Congratulations! So you’ve made the decision to stop renting and purchase a place of your own. The home buying process may initially appear complicated and a bit daunting, but by using the skills of a buyer’s real estate agent, searching the internet, and familiarizing yourself with each of the steps involved, your experience can be a smooth and rewarding one.

1. Analyzing your financial situation.

The first thing to do is to learn how much you can afford to pay for your Los Angeles home. Generally speaking, mortgage costs, or PITI (principal, interest, taxes, and insurance), should not exceed 26-28% of your gross monthly income. Many internet web sites furnish free tools for calculating these expenses for you. You can search under “calculating mortgage costs” or visit www.mortgagefit.com, www.bankrate.com, or www.bcsalliance.com, to name just a few. Remember that in addition to income, your credit rating, on-going monthly expenses, amount of the down payment, and the current interest rate must be factored into your financial analysis. Also take into consideration any HOA(homeowners’ association) dues, maintenance costs, and utilities you’ll have to pay on a monthly basis. You would be wise to investigate state and federal government programs which help qualifying first-time buyers with down payments and closing costs. Visit U.S. Department of Housing and Urban Development website for specific information which could be quite beneficial to you.

2. Getting prior loan approval.

The next step, before you ever begin actually looking a home, is to secure pre-approval for a loan. In order to do this, you will need to provide a potential lender with all necessary information about your finances. As a realtor, Eileen Walsh can help you do this.

After performing a thorough and positive analysis of your financial situation, the lender will issue you a letter of approval which states the amount for which you qualify. This letter assures sellers that you are guaranteed a sufficient loan and that the purchase can go through without their worrying about your ability to pay for the property.

3. Determining your needs and desires.

Now it's time to familiarize yourself with the Los Angeles area--in person or via the net. Think about the type of community you’d feel most comfortable in. Older and established? Brand new and shiny? Consider age, style, and size of home you’d prefer. Would a fixer-upper be a good match for you? Is proximity to good schools important? What about the distance to your workplace? Traffic patterns and noise? Ample (and reserved?) parking? Do the community amenities suit your lifestyle?

Make lists for yourself. What are your “must haves”? Where do you want laundry facilities? Is an updated kitchen essential? Do you prefer an open floor plan? Can you maintain a large yard? Prioritize your wants and needs and revise the list when necessary.

As a first-time Los Angeles home buyer, you’ll learn that you’ll have to make some compromises and that the whole process can be time-consuming, but also exciting! Rely on Eileen Walsh to advise you about the advantages and disadvantages of specific locations and house styles and to help you through the loan approval steps. Because of her access to the Multiple Listing Service (MLS) and knowledge of Los Angeles, she can search, with your wish list in hand, through thousands of listings to find the ideal Los Angeles home for you. You can also go to the MLS through this website and search for homes on your own to send to Eileen so she can set up viewing appointments for you.

Now watch this space for future "first time home buyer" postings...

NEW YORK (CNNMoney.com) -- Unemployed? Owe more on your mortgage than your home is worth? Your state might one day pay your mortgage.

Giving people free money to cover their home loans is just one of the radical ways that four states -- Florida, Michigan, California and Arizona -- plan to use $1.4 billion the Obama administration is sending their way to help the unemployed and underwater avoid foreclosure.

Many consumer advocates have said the government should help cover the payments of these troubled homeowners, lest the mortgage crisis continue spinning out of control and dragging down everyone's property values. But other housing experts warn that paying off loans creates a moral hazard and could actually dissuade people from looking for work.

Innovative programs, however, are exactly what the administration was hoping for when it unveiled the Hardest Hit Fund initiative in February. Officials are looking to help the unemployed and underwater, who are now at the heart of the crisis. Despite the administration's best efforts to stabilize the market, home prices are still sliding and foreclosure filings are at record highs.

The federal government is doling out a total of $2.1 billion to 10 states, which also include Nevada, North Carolina, South Carolina, Rhode Island, Ohio and Oregon. The others have not yet submitted their plans to Treasury for approval or have not made them public.

To be sure, the proposals will only a touch a small percentage of the unemployed and underwater homeowners who need help. But it will provide assistance to some of those who presently don't qualify for traditional loan modifications.

Administration officials will spend the next few weeks reviewing the proposals, but Assistant Treasury Secretary Michael Barr told CNNMoney.com that they contained some good ideas.

The recently unveiled initiatives are not identical, but they have two common themes: Helping the unemployed by subsidizing part or all of their monthly mortgage payments for up to two years and paying down underwater homeowners' loan balances.

The states want the loan servicers and investors to match their largess, hoping to woo them by paying down as much as $50,000 of underwater homeowners' loan balances.

But until now, financial institutions have been reluctant to reduce principal.

These proposals may irk Americans who are keeping up with their mortgage payments or don't want tax dollars used to help their neighbors. But Alan White, a law professor at Valparaiso University, said all homeowners will suffer if neighboring properties fall into foreclosure.

"There are benefits for all of us for stopping foreclosures any way we can," White said.

Plus, he added, many of the people who would be helped are those capable of paying their mortgages again once they find work. By example, he pointed to a longstanding Pennsylvania program that provides loans to the unemployed, which gives them assistance while they look for new jobs.

Also, covering homeowners' mortgages is a better use of government funds than giving incentives to the servicers and relying on them to assist borrowers, said Paul Willen, senior economist at the Federal Reserve Bank of Boston. This way, he said, states have more control over who benefits from the initiatives.

"Every dollar spent will go to families who need it," he said.

But delinquent homeowners aren't the only ones who would benefit from these subsidies. In fact, the banks would come away with a huge win, said Mark Calabria, director of financial regulation studies at The Cato Institute. Not only would they have government money securely in hand, but they'd avoid the time and expense of the foreclosure process.

"This is a lot more than they would have collected otherwise," Calabria said. "The lenders should bear the losses for this. They are the one who made the loans."

Another concern is that these proposals will dissuade the unemployed from finding work or from relocating to an area with better job prospects, said Casey Mulligan, an economics professor at the University of Chicago. Such programs incent people to maintain their financial hardships.

"Why should anybody work if you are going to be in your house either way?" he said.

    1. Selecting a property. First decide on a location and the type of property you are interested in. Los Angeles real estate offers a wide variety of desirable locations sought after by renters. You might also consider proximity to good schools, public services, shopping centers, highways, etc.

Another decision will deal with the type of property you want to own--a single family residence, a multi-family unit, or a vacation rental home. Discuss with you realtor and tax advisor the pros and cons of each to decide which will be most advantageous for you.

    2. Examining your finances. In addition to a monthly mortgage payment, investment property expenses can also include taxes, property management fees, utilities, insurance for fire and floods, repair and maintenance costs, condo fees, and periods of vacancy. Be prepared to have cash on hand for a 20% to 30% down payment (or investigate other options). There are many helpful tools to assist you in calculating costs and probable financial outcomes.

Also keep in mind that long term (5 to 10 years) ownership is usually best for the average investment. The shorter the length of time you hold the property, the greater the risk.

    3. Repairing and updating. Some investment properties require initial repairs/renovation ranging from cosmetic to structural. Unless you have the time and expertise needed to make such repairs, look for skilled professional to do the work for you. Keep in mind that most renters are looking for a good location and a home that is clean and in good working order; granite counter tops and top of the line appliances are usually neither necessary nor cost effective.

    4. Acting as a landlord. Being a successful absentee owner of Los Angeles real estate will require diligence and responsibility. Carefully screen all potential tenants. Run a credit check and find out from prior landlords if they were good tenants who paid the rent on time, treated the property with care, and were considerate neighbors. The more selective you are, the more successful your lessor/lessee relations will be.

As a landlord you have both rights and responsibilities, and you need to be mindful of each. The California Residential Landlord and Tenant Act covers rental agreements, remedy provisions, application fees, security deposits, and a wealth of other information and laws relating to the rights and responsibilities of both the landlord and the tenant.

Search all Los Angeles real estate and homes for sale.

To a home loan shopper, there may seem to be an endless--and confusing--array of mortgage types. Of course you want to choose the option that is best suited to your current and future financial situation, but understanding the terminology, types, and monetary ramifications is not always easy. Mortgages generally fall into four categories (fixed rate, adjustable rate, step, and balloon) according to the interest rate and duration of the loan.

Basic terminology;

• Fixed rate--The interest rates do not change during the life of the loan, thus allowing you to know the amount of your payments.
• Adjustable rate (ARM)--the interest rate is tied to certain indexes plus a margin and can fluctuate up or down, thus affecting each payment,
• Step--the interest rate and monthly payment remain the same for a specified period of time. After that the interest will change to the prevailing rate and will remain there for the duration of the loan
• Balloon--a loan payment that expands after a certain amount of time. Basically it functions similarly to a fixed rate mortgage in the earlier months/years with a delayed steep increase at the end,

The following information, courtesy of Mortgages.Interest.com, outlines the type of mortgage, the loan characteristics, and the situations most appropriate for each one. If, for instance, you plan to live in your Los Angeles real estate more than 10 years and desire stability in payment amounts, then a fixed rate mortgage is for you. If, however, your finances are currently strained, but you know that in 5 to 10 years your monetary situation will improve or that you will most likely move within 10 years, then an ARM or balloon mortgage may be better for you. Being familiar with these options allows you to discuss them intelligently with your real estate agent and/or lender and then select the type which best fits your circumstances.

Fixed rate mortgage (30, 20, 15, 10 years)

• Interest rate & monthly payment remain the same for the entire term of the loan
• plan to live in property more than 10 years
• ike total payment stability

0/1 year adjustable rate mortgage

• Interest rate & monthly payment remain the same for 10 years
• Starting the 11th year, interest rate adjusted every year, so payment is subject to change every year for remainder of loan 
• plan to live in property more than 10 years 
• like initial payment stability, can accept later changes OR 
• plan to move within 10 years
• want loan to remain in force in case plans change

7/23 (2-Step) or '30 due in 7' mortgage

Interest rate & monthly payment remain the same for 7 years

• Conversion option: On the 8th year, interest rate adjusted to reflect prevailing interest rates, resulting payment will remain the same for remainder of loan
• plan to live in property more than 10 years
• can tolerate one payment adjustment OR 
• plan to move within 7 years 
• want to remain in force in case plans change

7/1 year adjustable rate mortgage

• Interest rate & monthly payment remain the same for 7 years
• Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan 
• plan to live in property more than 7 years
• like initial payment stability, can accept later changes OR 
• plan to move within 7 years
• want loan to remain in force in case plans change

7 year balloon mortgage

• Interest rate & monthly payment remain the same for 7 years
• At the end of 7 years, loan is due in full. Borrower must refinance into new loan at prevailing interest rates 
• plan to live in property more than 7 years
• are willing to refinance at prevailing market rates OR
• plan to move within 7 years
• like payment stability

In addition, there are variations of the ARM, step, and balloon mortgages which differ primarily in the duration of the loan and of the planned residency.

Another good source of information for first-time Los Angeles home buyers is the Department of Housing and Urban Development (HUD), an agency which oversees FHA loans. This type of loan is particularly useful if you have little money for a down payment, less than great credit, or large monthly bills. An FHA loan requires as little as 3% down (and it can be a gift from a relative or friend). In terms of your credit rating, the FHA is primarily concerned that for the past two years you have paid bills in a timely manner and have been steadily employed. With FHA you have to wait only two years after declaring bankruptcy, and your debit-to-credit ratio can be higher than for a conventional loan. You can qualify for an FHA loan if your monthly payments are no more than 43% of your income, and, as with conventional loans, you can choose from many types.

Of course, there are some negatives to consider before taking on an FHA loan. Interest rates generally run about 1/8 of a percentage point higher than conventional rates, but the real disadvantage of an FHA loan is that the borrower must pay an up-front insurance premium of 1.75% of the mortgage if the down payment is less than 20%. This cost can, however, be added to your total loan amount.

So there you have it--an easy-to-understand guide to mortgage types. As always, you should feel free to contact me anytime with questions. I am glad to recommend a number of outstanding mortgage lenders if you are interested in talking with one.

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A trio of California cities bucked a nationwide home price decline in February while most of the other metro areas posted losses or flattened out, underscoring the resurgence of the Golden State's coastal markets, data released Tuesday showed.

The Standard & Poor's/Case-Shiller index of 20 metropolitan areas was down 0.1% from January on a seasonally adjusted basis, marking the closely watched measure's first decline since home prices began to recover last June.

But in a positive sign for housing, the index posted a 0.6% increase from February 2009, its first year-over-year increase in more than three years.

The mixed readings come as the expiration of a federal tax credit for buyers looms at the end of this week. Many analysts expect home prices to decline once the incentive runs out — but not nearly as steeply as when values entered a nearly three-year free-fall in the summer of 2006 that helped drag the U.S. into one of the most brutal recessions since the Great Depression.

"Generally, I don't see an upbeat picture, I see the trend as faltering," said David Blitzer, chairman of Standard & Poor's Index Committee. "One of the few spots that seems surprisingly strong is California."

California cities saw home prices in February gain 0.8% in San Diego, 0.4% in San Francisco and 0.2% in Los Angeles.

Mark Zandi, chief economist with Moody's Economy.com, said the strong showing in California reflected the reduction in foreclosures on the market over the last year. Foreclosures made up 44.3% of the resale market in February, down from an all-time high of 58.8% in February 2009, according to San Diego research firm MDA DataQuick.

"California is perhaps the most efficient state in respect to resolving its foreclosure issue and so a lot of properties were pushed through the process," Zandi said. "There are now fewer in the pipeline."

Although foreclosures may increase in California in coming months, leading to a period of flat prices and perhaps even some declines, the state was "much further along in getting its house in order than most parts of the country," he said.

Not reflected in the Case-Shiller numbers are regions in the state farther from the coast where overbuilding was more prevalent and the unemployment rate remains above average, said Richard Green, director of USC's Lusk Center for Real Estate.

"We are doing a little better than the rest of the country, and that is not particularly surprising because California, in general, didn't overbuild the way Arizona and Las Vegas and Florida did," Green said. "In the places we did, prices collapsed so much it's hard for them to fall much further."

In the next two months, some California shoppers have a shot at as much as $18,000 worth of tax credits if they get their timing right.

The federal tax-credit program, set to expire Friday, provides up to $8,000 for first-time purchasers and as much as $6,500 for some current homeowners. To qualify for that credit a buyer must sign a contract on a home by April 30 and close the deal by June 30.

Adding to that incentive is a statewide credit, which was approved by lawmakers last month and kicks in May 1, for as much as $10,000 for first-time buyers and those purchasing newly built homes.

The Case-Shiller index covers three months of data beginning in December, when sales began a three-month slump after what was to have been the federal tax credit's Nov. 30 expiration; Congress in November extended the credit. February's sales data capture that plunge and the traditionally slow winter months. Home sales picked up again in March, and many expect that trend to continue at least through April.

Along with the California cities, Las Vegas eked out a 0.1% gain. Fourteen cities posted declines in February over January, with the biggest losses in Portland, down 1.9%; Dallas, falling 1.4%, and Chicago, down 1%. Two cities were flat for the month.

What's your Los Angeles home worth?

HAFA provides incentives to families to take advantage of selling their Los Angeles home by means of a short sale (the home is sold for less than the value of the loan), or a deed-in-lieu of foreclosure (the home owner voluntarily gives the deed to the lender.

HAFA helps families quickly sell their Los Angeles homes by giving them pre-approved short sales terms before listing the property. They are fully released from future liability for the first mortgage debt, and can receive $1,500 for borrower relocation assistance. HAFA also allows investors and servicers to receive financial assistance for administrative costs, processing fees, etc. The program sounds simple, but is actually quite complex with many guidelines and rules. HAFA officially began on Monday, April 5, 2010 and will end on Monday, December 31, 2012.

Here you can watch ‘An Animated HAFA Story’, an informative video explaining HAFA…

I am a Certified Distressed Property Expert (CDPE), trained in helping families in distress avoid foreclosure. Are you or someone you know behind on mortgage payments? You do have options! A short sale may be what is needed to save your, your family and your credit. Please contact me anytime for a private consultation.

The California foreclosure crisis appears to be abating, new data show, as the federal government and big lenders step up efforts to keep troubled borrowers in their homes.

Mortgage default notices — the first step toward foreclosure — plunged 40.2% statewide in the first three months of the year compared with the same period in 2009, according to San Diego research firm MDA DataQuick.

Foreclosure sales dropped 1.7% from a year earlier and 16.1% from the last three months of 2009, DataQuick said Tuesday.

The numbers suggest that the housing market won't be flooded by a fresh wave of bank repossessions, which had been seen as a major threat to the market's recovery.

"It is surprisingly good news," said Gerd-Ulf Krueger, principal economist at Housingecon.com. "There is still a lot of supply lurking out there, but at this point, it looks like it is pretty much under control."

Stuart A. Gabriel, director of UCLA's Ziman Center for Real Estate, said the declining foreclosure numbers are "consistent with a broad range of indicators that are suggestive of not only a healing economy but the beginning of healing in the housing market."

Southern California home prices jumped 14% in March from the same month a year ago, to a median $285,000.

Even so, economists note that further gains statewide are jeopardized by continued high unemployment, particularly in the Inland Empire and the Central Valley.

Foreclosure activity remains concentrated in these inland areas, which suffer from above-average unemployment. DataQuick said mortgages were most likely to go into default in Merced, Stanislaus and San Joaquin counties. Conversely, defaults were least likely in the Bay Area counties of Marin, San Francisco and San Mateo.

"In coastal California, things are looking pretty decent," said Richard Green, director of the USC Lusk Center for Real Estate. "I still think if you get into the Inland Empire, Fresno, Bakersfield, Modesto, people are really struggling because the unemployment rate is so high — so that people just need help to get out from under."

California loan default notices peaked at 135,431 in the first quarter of 2009. Since then, the federal government has put increasing pressure on banks to work with homeowners behind on their payments. At the same time, experts say, banks have recognized that flooding the market with foreclosures weakens the value of the properties they have taken back and must resell.

Nestor Fabian, 44, and his wife, Ada, 41, are among those who are hoping for a break from their lender.

The couple bought a four-bedroom, three-bath home in Victorville in 2006 and said they owe Wells Fargo Bank about $305,000 on a property they believe is worth about $128,000. Ada lost her job at a Mervyn's store about two years ago and has since been jobless.

"I feel like a prisoner in my home," said Nestor Fabian, an audio technician who commutes to Pasadena. "Basically, I am asking for any peanuts they can give me."

Fabian is trying to arrange a lowered mortgage with Wells Fargo through the Obama administration's $75-billion effort to help troubled borrowers.

While the Fabians are hoping for relief, many others are still losing their homes. Paula Murray, 65, and her husband, Roger, 58, lost their Apple Valley home to a foreclosure sale in January. They are scrambling to find an apartment before they are evicted June 1.

But it isn't easy, Paula Murray noted, because both she and her husband are unemployed and the foreclosure has damaged their credit rating.

"It hurts me because the government gives all this money to these big rich guys to bail them out, bails out the banks, but the little guy can't get bailed out," Murray said.

In March, the Obama administration unveiled measures aimed at getting lenders to reduce principal balances on problem mortgages and refinance "underwater" borrowers, those who owe more on their home than it is worth. Another provision would allow many unemployed homeowners to get three to six months of reduced mortgage payments while they look for a job.

Kevin Stein, associate director at the California Reinvestment Coalition, said that although the program has added some uniformity to efforts to modify loans, it remains fundamentally flawed.

"Its main limitation is it continues to rely on voluntary participation and financial incentives for the banks to do what it is we all want them to do, which is work with families to avoid foreclosure," Stein said.

Foreclosures may also be slowing because banks are deliberately putting fewer homes on the market, experts said. It's now taking homes about 7.5 months on average to go from a default notice to a foreclosure sale. A year ago, it was 6.8 months, according to DataQuick.

"They may be a little bit reluctant to put homes on the market all at one time," said Celia Chen, a housing economist with Moody's Economy.com. "I also think the process is lengthy and there are many homes in the foreclosure process, and so the process may just be clogged up."

Across California, 81,054 borrowers received a notice of default in the first quarter of this year, down 4.2% from 84,568 in the fourth quarter of 2009. It was the fourth straight quarter in which default notices declined.

There were 42,857 foreclosure sales, a decrease of 16% from 51,060 in the fourth quarter of 2009 and 1.7% from 43,620 in the same period a year ago.

Now take a look at Los Angeles foreclosure statistics for March 2010.

Pending home sales rose sharply in February, potentially signaling a second surge of home sales in response to the home buyer tax credit, according to the National Association of Realtors®. Contracts signed in February, rose 8.2 percent above February 2009. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said the improvement is another hopeful sign. “The rise in pending sales may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten. We need a second surge to reduce inventory and stabilize home values.”

Let's take a look at March Sales statistics for Los Angeles to see how the recovery is progressing locally:

Beverly Hills Real Estate Sales Statistics - Single Family Homes

Beverly Hills Post Office Real Estate Sales Statistics - Single Family Homes

Bel Air Real Estate Sales Statistics - Single Family Homes

Hollywood Hills East Real Estate Sales Statistics - Single Family Homes

Hollywood Hills West Real Estate Sales Statistics - Single Family Homes

West Hollywood Real Estate Sales Statistics - Single Family Homes

For the latest Los Angeles real estate market conditions.