The current situation is the result of several converging factors.

First, when the bubble burst, homeowners who purchased when the market was rising or had reach its peak, lost value. That might not have mattered if two other factors hadn’t come into play at the same time:

• Adjustable rate mortgages reset, making mortgage payments double or triple
• The economy tanked and people lost jobs

If you find yourself unable to keep up with monthly payments on your house because of these factors, you do have some choices. If you don’t mind moving, the short sale is a good choice, but what if you’d like to keep your house? Refinance: Some programs will allow you to refinance up to 125% of your home’s current value – and lower your payments via lower interest rates. The FHA Short Refinance program will reduce your first mortgage to 97.75% of current value. If you are fortunate enough to have a loan that belongs to Fannie Mae and meets the timing criteria, you may be able to refinance without having an appraisal at all!

Reinstatement: If you’re in pre-foreclosure and have come into some extra money, you can reinstate your loan by paying the defaulted balance plus interest and late fees.

Loan Modification: Depending upon who owns your loan, you could be eligible for HARP, HAMP, FHA-HAMP, or the USDA’s Special Loan Servicing.  If you are having trouble making making payments but are employed and can still qualify for a loan, it’s possible that your current lender will work with you to lower your rate, lower the principle owed or even both. It can’t hurt for you to call the number on your mortgage statement and ask.

Forbearance: Again depending upon who owns your loan, if you are unemployed you may be eligible for 12 months of forbearance. During this time, you’ll be required to pay from zero up to 31% of your income toward the payments, but the bank will not add late fees or penalties and cannot start foreclosure. The unpaid amounts will be added to your loan balance for later payment.

Here in California, you may also be eligible for assistance from “Keep Your Home California.” For details, call 888.954.KEEP.

Bankruptcy: In some cases, judges allow homeowners to keep their homes – sometimes even reducing the principal balance. Do consult a qualified real estate attorney before considering this option. Alot will depend on the type of bankruptcy. Sometimes you can forestall a foreclosure but not be able to keep your home indefinitely. In such a situation, a short sale could be your best course of action.

More Help May be on the Way…

Expanded HAMP programs will be go into effect June 1, 2012. So even if your lender has deemed you ineligible for assistance in the past, it would be wise to check back after the new guidelines are in place.

To learn who owns your mortgage loan, visit Making Home Affordable.

If you own a home in Silver Lake, Los Feliz, Hollywood Hills, Eagle Rock, Pasadena, or surrounding areas and you’ve decided that a short sale is the best option, or if you just need to discuss your options with a real estate professional, get in touch.

I’ll be glad to go over the specifics of your situation with you and help you determine your best course of action.

You can call me directly at 213-215-4758 – but hurry. Don’t wait until the bank makes the decision for you. 

Jenny Durling
Broker Associate
LA Property Solutions
213-215-4758

Copyright © 2012 By Jenny Durling * What are the Alternatives to a Los Angeles Short Sale? *

Also located on the park grounds is the Los Angeles Municipal Art Gallery. The art gallery’s mission is to “promote, interpret, and present the art of emerging, mid career and established artists from culturally diverse South California”. What that means?  The 10,000 gallery is a great place to see a variety of art from area artists ranging from sculpture, photography, painting etc. as well as performance art and installation works.

Amazing as it may seem, admission to the gallery is actually free. The gallery is open Thursday–Sunday from noon to 5 pm and on first Fridays from noon to 9 pm. Of course, behind any such endeavor you’ll find a group of volunteers working to provide funding and keep the operation open.

The Los Angeles Municipal Art Gallery Associates

The Los Angeles Municipal Art Gallery Associates (LAMAGA) is a private non-profit corporation that was founded in 1951, with the goal of promoting the museum and serving as advocates. LAMAGA helps support the Los Angeles Municipal Art Gallery with grant writing, special exhibits, public relations, and of course, fundraising.

Saturday, May 12 at 7:00PM, LAGMA and the Barnsdall Art Park Foundation invite you to their biannual benefit in Barnsdall Art Park:  Eat.Drink.Art. This event is a celebration of art where guests can dance, drink and mingle with artists, gallery supporters, curators, civic and cultural leaders and of course, friends!  Admission is $25 and includes a 4 drink flight.  There will be DJ’d music, food trucks, wine and beer tasting and performances, installations and demonstrations by multi-talented artists. Come out for a great evening and support the Los Angele Municipal Art Gallery at the same time. Tickets to Eat.Drink Art are available online. Please note that this is and adults-only affair, so no one under the age of 21 will be admitted. Tickets will also be available at the door.

Barnsdall Park – 4800 Hollywood Boulevard  (323)-644-6269

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I hope to see you there!

Jenny Durling
Broker Associate
LA Property Solutions
213-215-4758

When payments are overdue it can be tempting to simply wait it out and live payment-free for a few months until the bank gets around to foreclosing. However, that’s a poor idea in terms of your financial future.

Three very good reasons to avoid foreclosure and take steps toward a short sale today:

1. Credit, and your ability to purchase another home

A foreclosure will stay on your credit report for ten long years. And even if everything else on your report is good, and you’re able to raise your credit scores, you won’t be eligible for a new mortgage loan for 5 to 7 years.

After a short sale, you’ll be able to purchase another home in as little as 2 or 3 years.

2. Your financial liability for a deficiency after a foreclosure

If you happen to have a second mortgage or a home equity line of credit, the second lien holder can and probably will sue you for a deficiency* after a foreclosure.

You may have read that when California passed SB 458 banks would no longer be allowed to sue for a deficiency on second liens. That’s true, but it only applies to short sales – not to foreclosures. Thus, if you had a $50,000 home equity line of credit and the bank was not paid off after foreclosure; they’ll sue and obtain a legal judgment against you and your assets for that $50,000.

Since homeowners in Silver Lake, Echo Park, Los Feliz, and surrounding areas saw their home values drop by as much as $100,000, it’s unlikely that your second mortgage holder will be paid from the proceeds of a foreclosure.

Expiration of the Federal Income Tax safety net.

Right now, under the terms of the Mortgage Tax Debt Relief Act, you’re protected from tax liability on “forgiven” mortgage debt. This Act, which George Bush signed into law in January 2008, created a tax safety net for homeowners who lost their homes through foreclosure or sold in a short sale.

It appears that Congress thought the mortgage crisis would be over by now, because the Act expires on December 31.

That means that whether you allow a foreclosure or opt for a short sale, if it happens on January 1, 2013 or later, you’ll owe income tax on every dollar the banks don’t collect.

It’s not your fault that Los Angeles area home prices tumbled, but if you wait, you’ll pay the penalty.

Time is of the essence

If you believe you could possibly lose your house to foreclosure, don’t wait to see what happens. The dollars you’ll save by being “payment-free” for a few months are insignificant when compared to the liability you’ll face if you have a second mortgage, or if your debt is “forgiven” after December 31.

For the safety of your financial future, list your home in in Silver Lake, Echo Park, Los Feliz, or the surrounding areas right now, so it can be sold and closed prior to the deadline.

*A deficiency is the difference between what you owed at the time of the foreclosure and the amount the bank was able to collect after selling your house and deducting all the expenses of sale. In Los Angeles, this can amount to many thousands of dollars.

Do start now – don’t risk the real possibility of owing Federal income tax on the thousands of dollars your Los Angeles home lost in value due to the mortgage crisis.

Jenny Durling
Broker Associate
L.A. Property Solutions
213-215-4758
info@LApropertySolutions.com
LApropertySolutions.com

Copyright © 2011 By Jenny Durling * If Your Los Angeles Mortgage Payments are Overdue…*

DISCLAIMER: This article is intended for informational purposes only. None of the information contained in this article should be taken as legal advice. Readers are advised to seek legal and or tax counsel regarding any information provided herein as they relate to specific personal situations a reader may face. Further the information herein pertains to California only. Deficiency laws will differ in each state.

This act removed the tax consequences of having mortgage debt “forgiven” either through foreclosure or a short sale. Until then, any debt that a mortgage holder wrote off was subject to Federal Tax as “1099 Income.” The act provided a tremendous relief to home sellers in Los Angeles when their home values took such a dramatic tumble.

Without it, underwater homeowners in  Silver Lake, Echo Park, Los Feliz, and surrounding areas  would have been paying income tax on thousands of dollars of unpaid debt when they sold short or lost their homes to foreclosure.

When this bill was passed, members of Congress must have thought the mortgage crisis would be over by the end of 2012. But as we all know, it isn’t over. And now the Mortgage Tax Debt Relief Act is set to expire in less than 9 months.

What that means to you: If you are  underwater and need to sell your Los Angeles area home, it would be wise to list now and get your transaction closed before the year ends. Even though the banks say they’re doing more to streamline short sales, they still take much longer to close than other real estate sales. If you wait and do nothing and your property is foreclosed upon, you WILL be responsible for the tax on the amount ’forgiven’ if the current laws remain as-is.

Could Congress extend the Mortgage Tax Debt Relief Act? Yes, but so far we’ve heard no news indicating that they will.

List now to avoid making an entry on this line

If you are in a tight position and aren’t sure if you should try to hang on to your home or list as a short sale, I’d be happy to help you explore your options. Just fill out the online contact form, or better still, give me call today at 213-215-4758.

Do start now – don’t risk the real possibility of owing Federal income tax on the thousands of dollars your Los Angeles home lost in value due to the mortgage crisis.

Jenny Durling
Broker Associate
L.A. Property Solutions
213-215-4758
info@LApropertySolutions.com
LApropertySolutions.com

Copyright © 2011 By Jenny Durling * Underwater Homeowners’ Tax Safety Net to Vanish in 2013*

Often, buyers approach the home search without a clear idea of what they’re looking for. They think “they’ll know it when they see it” so spend a lot of time viewing homes that just won’t do. Others have a long list of “wants” and become frustrated because no one home offers all of them.
Budget constraints also play a part. If the sky is the limit, you may be able to find a home that offers every feature you could dream of. If you have a budget, you’ll need to set priorities.

Make two lists:

Save yourself time and streamline your home search by making two lists. The first is for those features and benefits that your new home absolutely must offer.

For instance, you might work from home and require an office or an extra bedroom to turn into an office. Put that on the list. You might be a gourmet cook and would be miserable without extensive counter and storage space in the kitchen. Put that on the list.
You might be a musician and own a grand piano – your list needs to note that you need a room large enough to accommodate that piano.
Once your list is made, share it with me. Using it, I can narrow our search to homes that meet your most important requirements.
Next, make list of the features you want.  These are the “extras” that appeal to you but aren’t absolutely vital. For instance, a bay window, a huge pantry, an over sized garage, or walk-in closets. For some, even the number of bedrooms and baths fall under the “want” rather than the “need” category.

Using your first list, I’ll locate homes that offer the features you absolutely must have.  After we’ve eliminated the choices that won’t work, we’ll have a list of possibilities that match your “must have” list – and can focus on viewing homes that include the items on your “nice to have” list.

Once we begin viewing homes together, we can further refine the search by paying attention to how you feel about the details in each home. Sometimes home buyers change their minds about features they wanted or didn’t want after viewing homes with those features. In addition, you might notice features that you hadn’t thought of before and want to add them to your list.

Paying attention, sorting through the listings, and saving you time in your home search are some of my functions as a buyer’s agent. Your lists will help that process go smoothly.

For information on buying or selling property in  Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Jenny Durling
Broker Associate
L.A. Property Solutions
213-215-4758
info@LApropertySolutions.com
LApropertySolutions.com

Copyright © 2011 By Jenny Durling * Home Buying: The Features You Want vs. the Features You Need*

Friends of Atwater Elementary is a non-profit group run by parents and neighbors in Atwater Village who are committed to helping the school, and its students through targeted fundraising.Coming up on Saturday, March 24, 2012, the Friends of Atwater Elementary present “Electric Blue”, a celebrity auction and charity fundraising event to raise funds for Atwater Avenue Elementary School’s new technology program. The school’s new computer lab gets kids up to speed with technology and is currently being used successfully with language arts and mathematics programs.

This historic restaurant and tavern in Atwater Village has become a bit of a Los Angeles Icon.  Near the early movie studios of the area, the restaurant was frequented by many stars including Fatty Arbuckle, Mary Pickford and John Wayne. Walt Disney and his staff were such regulars there that the Tam was coined “The Disney Studio Commissary”! The Disney connection is obvious by a look around the restaurant interior where you’ll find sketches of Mickey Mouse and framed drawings autographed by Walt himself. The lobby is a bit of a Los Angeles history museum!

The Tam O’Shanter looks like a Scottish country inn.  The inside is dark and inviting, warmed by a fireplace in the front lobby. Throughout the restaurant you’ll find framed pieces of tartan plaids labeled by clan and the wait staff dresses in Scottish-inspired attire.

As part of the Lawry’s chain of restaurants, The Tam is famous for its Prime Rib but you’ll still find hearty Scottish-inspired items on the menu like, braised beef short ribs and Toad in the Hole. Make sure to leave room for dessert – their chocolate soufflé with fresh whipped cream needs to be ordered with dinner so it’s ready when you are!

If you are a scotch drinker, you won’t be disappointed as their list of available scotches is impressive. Occasionally there will be scotch-tasting events in the restaurant’s bar.  As much as I love to sit down to a prime rib dinner, I’m actually quite fond of the Tam’s Ale & Sandwich Bar where a chef whips up hand-carved prime rib, roasted turkey, corned beef, and brisket sandwiches with your choice of sides. I highly recommend the cole slaw with peanuts! Sandwiches are available starting at 4pm and I’ve been known to pick up a few sandwich plates for outings at the Hollywood Bowl. Enjoy live music in the Tam’s Ale & Sandwich Bar Friday & Saturday Night starting at 8:00 PM, or stop by for Trivia on Tuesday nights at 7pm.

Though the Tam O’Shanter is a Scottish-themed restaurant, you’d think it was Irish based on their annual St Patrick’s Day affairs!  This year’s festivities take place on March 17 from 11am to midnight.  There will be traditional Irish dishes, music, dancing, Guinness pints, Jameson shots and green beer abounding. The restaurant erects a party tent and provides live music all day with no cover charge.  This year’s lineup includes: Slugger O’Toole, 29 Mules, Ploughboys  and the ever popular Bagpipers.

For those visiting Los Angeles, it should be on the map as a place to see when you are in town. If you are planning on dinner, reservations are highly recommended.

The Tam o’Shanter is located at 2980 Los Feliz Blvd, Atwater Village.

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For more information on things to do in Los Angeles and information on buying or selling property in , Atwater Village,  Silver Lake, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Jenny Durling
Broker Associate
L.A. Property Solutions
213-215-4758
Jenny@LApropertySolutions.com
LApropertySolutions.com

Copyright © 2012 By Jenny Durling * The Tam O’Shanter- One of Los Angeles’ Oldest Restaurants*

Since 2006, Kitten Rescue has operated the Casitas Hotel for Cats, a private, no-kill shelter and boarding facility in Atwater Village. Kitten Rescue purchased the facility in March 2006 and it houses approximately 150 cats at any given time.  Many are adoptable and waiting for good homes. Others may have chronic illnesses, or are elderly and less likely to be adopted. All of the animals at the shelter are safe, loved and taken care of by both staff and volunteers. Though the shelter enables Kitten Rescue to help many cats in need, the organization relies heavily on their network of volunteer foster homes. I adopted one of my kitties who had been living in a foster home for more than a year!  She was well cared for, spayed, had her shots and was even microchipped!  Kitten Rescue volunteers place nearly 1,000 cats and kittens into new homes annually. More than 10,000 cats have been rescued and placed in loving homes since the inception of Kitten Rescue.

Are you a cat-lover like me? How about adopting a cat or two? Or if you have the time and space at home, you can volunteer to be a foster parent and bring some cats or kittens into your home temporarily while they wait for permanent homes . If that’s not an option, you can volunteer to help out at the shelter – there’s always something to do. Socializing kittens is NOT a bad way to spend some time. Good for the cat and relaxing for you too.

You don’t have to sponsor or cat – you can simply go online and make a donation via Paypal in any amount you’d like. Donations to Kitten Rescue are tax-deductible and receipts are available upon request.  Even simpler than that, you can donate to Kitten rescue just by registering your store loyalty cards and credit cards! Participating merchants contribute each time you make a purchase using your free grocery loyalty or debit/credit cards that are registered with eScrip. Just enter your card numbers and you can help the shelter without doing anything other than your regular shopping!

March 11- Kitten Rescue welcomes its volunteers, adopters and supporters to the Kitten Rescue Sanctuary for their “St. Catrick’s” open house. There will be food, fun, green beer and lots of cats! The festivities run from noon until 6pm. The Kitten Rescue Sanctuary is located in Atwater Village. They don’t publicize their address to prevent people from simply dumping cats on their doorstep but if you would like to attend this event, rsvp to openhouse@kittenrescue.org I attended the event last year and expect I’ll stop by again this time.

Check out the Kitten Rescue website for information on cat rescue, care, and adoption for animal lovers all over the world.

Jenny Durling
Broker Associate
L.A. Property Solutions
213-215-4758
info@LApropertySolutions.com
LApropertySolutions.com

There is a new listing in Beachwood Canyon and on the surface, it’s a steal!  In January of 2007, the house at 6216 Primrose Ave. sold for a cool $1,165,000. It was quite a lovely home in a nice location with 4 bedrooms and 2 baths. What you might expect for that price of a home in the Hollywood Hills. Apparently the most recent owners had their own idea of what the place should look like and attempted a completed overhaul. Most likely they ran out of money in the process as it is currently bank owned and back on the market. The original hardwood flooring has been replaced with dark, engineered wood floors throughout. The kitchen has taken on an odd shape and the downstairs is quite frankly a little creepy!  There are open walls and unfinished rooms but the house has potential. I counted 2 bedrooms, 2 baths – a possible 3^rd bedroom downstairs and a half-completed powder room on the main floor. I don’t know what happened to the 4^th bedroom!

So how much should a house in Beachwood Canyon around 2000 sf go for? This property is currently listed for $789,000. The seller operates through an online auction/offer submission service and the current high bid is all of $550,000. Like eBay, this auction does have a reserve, and the reserve is somewhere between that current bid price and the list price.

When this listing came on the market I was pretty excited. I looked at photos from the last time it sold. It looks lovely with original hardwood floors and 1920’s details. I decided to go check it out in person and was a bit dismayed by its current condition.  There’s nothing ‘wrong’ with the changes that were made and if the house was completed, I’m sure it could be very nice. The unfortunate thing is actually the next door neighbor!

This house is up in the Hollywood Hills and has a corner view of downtown and could have an even nicer view IF it were not for the house next door.  Above is a photo of how the prior owners ‘dealt’ with that, rather successfully.  Watch my video walk through of the property below and see what it looks like now. Would you buy this house? If you’d like to take a look at it or see other homes for sale in the area, give me a call at 213-215-4758 or email me: Jenny@LApropertySolutions.com

For information on  The Hollywood Hills, Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Jenny Durling
Broker Associate
L.A. Property Solutions
213-215-4758
info@LApropertySolutions.com
LApropertySolutions.com

Copyright © 2012 By Jenny Durling * A Great Deal On A House In Beachwood Canyon – or Not? You Decide!*

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Currently Available Homes in the Hollywood Hills

It is common for people who have received a notice of default to wait too long before doing anything about their situation and ending up with their Los Angeles home being foreclosed on. There is a tendency to go into denial as if the problem will go away on its own.  If the threat of foreclosure or a pending trustee’s sale date isn’t enough to motivate you, remember that the Mortgage Forgiveness Debt Relief Act of 2007 is set to expire on December 31 of this year.  Short sell your Los Angeles house before time runs out!

What is a Short Sale?

When you short sell your Los Angeles home, you are basically getting your lender or lenders to agree to accept less for the property than you currently owe. The difference between what you owe and what the bank takes as final payment is ‘cancelled debt’.  Prior to the enactment of the Mortgage Forgiveness Debt Relief Act of 2007, that cancelled debt would be taxed as income.  Owners of properties foreclosed on or sold AFTER the act expires, will once again be responsible for paying income tax on the forgiven amount.

Some people think it is in their best interest to stay in their homes as long as possible without paying their mortgage, hoping that the bank will take several months before they get around to foreclosing, allowing them to live ‘for free’.  Though many have been able to do this, we are getting to the point where it could put you in a precarious position if you simply leave the timing up to the bank.  Rather than wait, you should list your home as a short sale sooner rather than later. The short sale process can take several months so if you wait too long to list it and don’t get through the process before the end of the year, you could be faced with a hefty tax bill.