Great Buy in Studio City Hills – Fixer but with lots of potential!


Great opportunity to own in the Dona’s. This 3 Bedroom / 2.5 Bath home has  wonderful appeal. The living room features beautiful floors, brick fireplace and recessed lighting. The formal dining room leads into the kitchen eat in kitchen with granite counters and access to the back patio and green yard. Upstairs are 3 Bedrooms and 2 baths. The front bedrooms have Juliette balconies with treetop views.

Located just minutes from trendy shopping, dining and nightlife. Info herein is not verified by agent. Buyer to verify all info & rely on their findings.  This property is a foreclosure.

3 bedrooms/2.5 bathrooms 1,900 sq. ft. ASKING PRICE: $895,000

Please contact me at (310)402-8181 or for questions/showings.

Dona2 Dona3 Dona4 Dona5 Dona6

Shadow Inventory: It’s Not as Scary as It Looks

The housing market is improving because there are more buyers chasing fewer homes. Skeptics of a housing bottom, however, often point to a scary set of numbers: the “shadow inventory” of potential foreclosures—the millions of mortgages that are either in foreclosure or in seriously default.

It’s true that home prices are unlikely to see brisk gains once they do hit bottom because it will take years to absorb this glut. But will this phantom inventory derail the incipient housing bottom?  Maybe not, say a number of housing analysts.

There are several reasons why the shadow inventory isn’t as scary as it sounds: It’s concentrated in a handful of markets—it isn’t inherently a national phenomenon. It is being offset by improved demand, particularly from investors. And the housing vacancy rate is low, a product of very little new home construction over the past few years that could counterbalance continued high inventories of foreclosed homes.

We’ll address each of those in subsequent posts. But first, let’s examine the actual size of the shadow inventory. While the shadow is very large, one often-overlooked fact is that the shadow isn’t nearly as large as it was two years ago.

There are a wide range of estimates of shadow inventory. A common measure are loans that are either in the foreclosure process or that are three months or more delinquent. These are mortgages that are among the most likely to ultimately become bank-owned properties.

Barclays Capital estimates that at the end of May there were around 1.8 million mortgages in the foreclosure process and another 1.45 million where borrowers have missed at least three payments. That puts the total number of properties that could be repossessed and resold by banks at around 3.25 million mortgages.


‘The concept of a huge shadow inventory is preposterous,’ says one economist.

If those homes hit the market all at once, housing would be in deep trouble. Last year, for example, there were 4.4 million sales of previously owned homes. The figure is still higher than any time before June 2009.

But it is down from a peak of 4.25 million in February 2010. And unless mortgage delinquencies begin to accelerate sharply, the shadow inventory won’t be growing. Barclays estimates that at the current rate, this figure could fall to around 2.4 million loans.

“The concept of a huge shadow inventory is preposterous,” says Christopher Thornberg, a housing economist with Beacon Economics in Los Angeles. “The number of mortgages in distress is way down from one year ago. It’s clear there are fewer distressed properties out there.”

Housing analyst Ivy Zelman has a slightly larger estimate of shadow inventory—around 6.3 million homes at the end of last year—that includes more newly delinquent mortgages and potential re-defaults. She says that in a normal market, there’s a comparable shadow inventory of 2.9 million homes. So the key figure—the excess level above the historical trend—is around 3.4 million homes.

Ms. Zelman published an in-depth research note earlier with the title: “Shining a bright light on the shadow: Why what’s lurking doesn’t concern us.” In it, she explains how it’s more important to focus on the pace at which foreclosures are being liquidated, and not the absolute number.

“Just like the Wizard of Oz, shadow inventory is not very intimidating once you pull back the curtain,” the report said. That isn’t to dismiss the magnitude of the problem and headwind it will continue to pose for any housing recovery, she wrote. “The bathtub is almost full, but the water has stopped rising, and we are most concerned with how fast it drains.”

Certainly, there are many other  risks to housing. There are at least 11 million homeowners that are underwater, owing more than their homes are worth. There are even more than that who don’t have enough equity to make a 10% down payment on their next home, plus pay a real-estate broker’s sales commission, in order to trade up to a bigger home or downsize to a smaller one.  And it’s still very difficult to get a mortgage.

But the shadow inventory is often the big trump card used to quiet any housing-happy talk. Tomorrow, we’ll offer a deeper look at how demand factors into this equation, and how the shadow is being disposed.


Source: LA TIMES

Hot Deal of the Week! Sunset Strip Property!

Hot Deal in an incredible Hollywood Hills Location: 8530 Franklin Ave. Los Angeles, CA 90069

Foreclosure Property

Asking Price $920,000

3 Bedroom/ 3 Bathroom

2,183 Sq. Ft. – Interior

6,810 Sq. Ft. – Lot Size

Perched high above the Sunset Strip you will find this bright and airy home in the trees. Upon entering you have views through the living room out toward the city. The open living / dining / kitchen area has hardwood floors, beamed ceiling and a brick wall with a fireplace. Also on the first floor you will find a family room with fireplace and deck access as well as a bedroom suite with large bath. Upstairs are more bedrooms and a beautifully done bathroom with classic touches. Located minutes from famous shopping, dining and entertainment.


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Listing Courtest of: Joyce Essex Harvey DRE 00935813

Five Things You Need to Know About Foreclosure Properties

Buying a foreclosed house—that’s a house repossessed by the bank because the owner defaulted on the mortgage payments—is not for the faint of heart. The fact is that the buying process is more complex and generally takes longer than the usual house-for-sale deal. But with some pre-planning, you can have it all: a good house and a good deal.

  1. Start with the money. Get pre-approved for a mortgage before house hunting begins. Good deals can go so quickly you won‘t have time to arrange for a loan. Also, money is power. Knowing you can get a mortgage as well as how much you will have gives you an edge during negotiations.  Having your pre-approval, proof of funds, and credit information ready is crucial in scoring a great deal.  Chances are if it’s a great property, someone else is also interested!
  2. Find a real estate agent who understands foreclosures. Their insight into the process, including time frames and bank requirements (which are frequently and frustratingly revealed one at a time) along with professional contacts such as house inspectors and contractors, is invaluable. Plus, it’s nice to have someone hold your hand during negotiations.
  3. Do your research. During the house search, check out neighborhoods and going sale prices as well as the usual due diligence legwork (school systems, recreational activities, etc.) before making an offer. This will be your home for many years and these are things you probably won’t be able to change, unlike wallpaper or bad carpeting.
  4. Know your budget.  Many foreclosures are not sold in turn key condition.  It’s important to plan how much money you have in order to make the necessary improvements in order to move in so that you don’t get in over your head.  Most of these properties are sold “AS IS”, meaning the seller, in this the bank, will not be making repairs.  A lot of the time the best deals are the ones that need a little TLC, so don’t shy away from easy repairs such as paint, flooring, and cosmetic updates that can be taken care of over time, but will bring value to the property, as well.
  5. Finally, don’t settle.  If you don’t want a fixer-upper (remember to consider those costs when making an offer) but do want or need a four-bedroom two-bath house, look until you find one in an area where you want to live and at price you can afford. It’s out there, but no house is perfect.  I would suggest making a list of things you would like in a home and another list of non-negotiables, so that when you have to make a quick decision, you will know what you can and cannot sacrifice.

Please visit or contact me at for more information.

Foreclosures expected to rise, pushing home prices lower

Banks are getting more aggressive with the 3.5 million U.S. homes with seriously delinquent mortgages, setting the stage for a big wave of foreclosure action this year.

Great Los Angeles Times Article:

California and other states are likely to see an enormous wave of long-delayed foreclosure action in the coming year as banks deal more aggressively with 3.5 million seriously delinquent mortgages.

And experts said that dealing with the foreclosure process, from issuing notices of default to selling repossessed homes, is likely to push housing prices lower this year before the real estate market has a chance to recover.

A report from RealtyTrac, an Irvine data firm, said about 1.9 million U.S. homes were hit with default notices, foreclosures and other actions last year. That is down from 2.9 million in 2010. Seriously delinquent loans are defined as being four months in arrears.

“There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets,” said Brandon Moore, chief executive of RealtyTrac. “We expect that trend to continue this year.”

The real estate market was in “full delay mode” last year on foreclosures as banks worked to correct legal problems with procedures in many states, Moore said.

In California, 3.2% of homes logged at least one foreclosure filing last year, down from 4.1% a year earlier. But regional differences continued: 2.7% received notices in Los Angeles County and 2.5% in Orange County, compared with nearly 5% in San Bernardino County and 5.3% in Riverside County.

California saw a second-half surge in initial notices of default — the first warnings that a bank is preparing to seize properties with delinquent mortgages, said RealtyTrac spokesman Daren Blomquist.

Though many more foreclosures are expected this year, the number still will be below the peak of 2010, Blomquist said.

Connie Der Torossian, co-president of the Orange County Home Ownership Preservation Cooperative, a nonprofit housing counseling agency, said the distressed homeowners she helps are getting loan modifications or sales dates from banks far faster than in the past. The days of troubled borrowers spending two years in foreclosure limbo are at an end, she said.

“We’re not seeing people have to wait six or seven months to get an answer,” she said. “It’s more like six or seven weeks.”

Worried that the foreclosure flood could further undermine the housing markets, the Federal Reserve urged Congress recently to do more for troubled homeowners.

Some Fed officials have been advocating reducing the loan principal more often for underwater borrowers, those whose homes are worth less than their mortgages. The central bank also has been urging mortgage giants Fannie Mae and Freddie Mac, kept alive by three years of taxpayer bailouts, to unload their backlogs of foreclosed properties in bulk discount sales to investors who would then rent out the properties.

That process, which Fannie and Freddie officials said is under study, could help stabilize the housing markets. However, in the short term it would increase taxpayers’ tab for propping up the government-sponsored housing finance firms, which already has reached about $150 billion.

Central bankers have tried to resuscitate the economy by keeping interest rates at record low levels. Celia Chen, a housing economist at Moody’s Analytics, said the Fed is now taking additional steps because the economy remains fragile and could tip back into recession.

However, Chen believes housing is “poised for better days” after the backlog of foreclosures is cleared away. She said housing is now undervalued, with prices compared to incomes well below the average over the last 20 to 30 years.

RealtyTrac reported a dip in foreclosure filings in December, but Chen said that appeared to be only a holiday hiatus by banks. She projected that home prices will trend slightly lower as the distress sales take place but will bottom out this year in California and the rest of the nation.

After that, Chen said, the improving economy could put the housing recovery in “full swing,” driving prices up nationally more than 5% in 2013 and 7% in 2014.

California home prices probably will track the national trend and hit bottom during the middle of this year, she said. However, prices will probably recover at a slower pace than much of the country because housing and unemployment problems run so deep in the Golden State.

The state’s difficulties were reflected in RealtyTrac’s report, which showed California with the third-highest incidence of foreclosure filings in 2011, behind only Nevada and Arizona.

However, analysts also said they expect housing in California to stabilize more quickly than in many states. The reason: a speedy foreclosure process that normally takes place without court action and is one of the most streamlined in the nation.

RealtyTrac said the average foreclosure took 352 days last year in California, down from a peak of 363 in 2010. By contrast, the foreclosure timeline was 806 days in Florida and 1,019 days in New York, both of which require extensive court review of foreclosures.