Short Sales Defined - The Rise of Silver Lake Foreclosures

The rise of Silverlake foreclosures have saturated the local market. It seems that almost every neighborhood has at least one home that is in the process of foreclosure. If you don’t know what the term “SHORT SALE” means, it it defined as the following:A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes.

From the California Association of Realtors, “Homeowners faced with stalled appreciation, little or no equity, and subprime adjustable-rate mortgages (ARMs) that are resetting to higher rates are combining into something of a perfect storm. * Many subprime borrowers are barely treading water and others have precipitated a wave of foreclosures that is unlikely to ebb anytime soon. * The statistics are daunting. In April, DataQuick reported that the number of default notices (NoDs) sent to California homeowners last quarter increased to its highest level in almost 10 years. Between January and March, NoDs were up by 23.
For Buyers:
This is a great time to buy Silverlake foreclosure homes. The banks have finally awakened and are ready to negotiate with qualified buyers. Most banks minimum requirements for accepting offers has been 10% down, strong fico scores, and being able to provide proof of income. If you meet these basic requirements, then you can buy many great Silverlake Foreclosure opportunities.

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Reasons why condos are a great second home!

If you make a Hollywood Hills Condo or Hollywood Hills Townhome your second home chances are you will be very happy with your choice.

More than seven in 10 condo and townhome owners say they are satisfied with their purchase, according to a recent survey conducted by Zogby International for the Foundation for Community Association Research. The foundation conducts surveys periodically to keep track of the perceptions of owners who live in condos and townhomes and also to identify trends in the condo market.

There are a number of reasons why satisfaction is such a big trend in regards to communities governed by homeowners associations. Compared to single‑family homes, condos are generally less expensive. Cheaper prices make condos cheaper to operate as a vacation home, because property taxes, homeowners insurance and utility bills cost less. Townhomes and condos are also easy on your back!

Landscaping chores are not managed by you but by the association. Given the average condo has a smaller sq. footage than the average single family home keeping the interior clean and up to date is much easier. If this property is a vacation home then this means much less time and money spent on upkeep.

What's more, the homeowners association, as the community's on‑site governing body, is there to serve the best interests of the community. The association protects your home's value, provides security for the community and uses a professional management company to keep on top of operations.

Furthermore, the association is there to serve the best interests of the community. They protect your homes valuem, provides security and uses professional management companies to keep on track of operations.

All and all, with a single‑family home, not only could you spend more, but you are also pretty much on your own keeping things in working order. And lets face it who wants to being doing that when you could be enjoying your investment and entertaining guests!!

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Using Scent makes sense when selling your home!

Small actions may make big differences in getting your Hollywood Hills home sold!

"When buyers walk into a house before they actually see anything in that house, because they breathe, they are smelling. So they are actually getting an impression, whether it's conscious or subconscious, of your home ‑‑ just by the way it smells," says Rick Ruffolo, senior vice president of brand, marketing, and innovation for Yankee Candle Company.

Choosing to proactively make a statement in the way your home smells is just another step in helping to sell your home faster.Ruffolo says curb appeal gets buyers in the door but then they see and smell your house and begin to decide if this is the property for them.

So, right now take a deep breath, what kind of smells are coming from your house?

"If it's a vacant home it can be musty. But if it's an active home it also could have odors of whatever activities that are going on in that house," says Ruffolo.


Are home buyers going to smell the dirty dog that has been running all over your home after a long walk? Are they going to smell your gym bag filled with dirty and soiled socks that have been buried in the hamper for the last few weeks? Or how about the cat litter box that needs to be cleaned? While we all have different preferences for scents most would agree that none of the above are welcoming aromas.

Creating pleasant aromas in your newly‑listed house can help the buyer to experience an emotional connection with the home. Ruffolo says when it comes to bathrooms, great rooms, or even basements it's a good idea to try different fragrances. "You may want to think of what we refer to as clean or fresh fragrances and those could be based in various fruits, so the citrus family is a really good one," says Ruffolo. He also mentions that any fragrances that are over powering are good to avoid.

Ruffolo encourages home sellers to use fragrance that appeal to many such as vanilla, kitchen spices, citrus or freshly cleaned laundry. There are many things that can help the scent of your home. From candles to oil diffusers they are both decorative and powerful. Ruffolo says with all the tips out there about selling a home, the scent factor is often the most forgotten.

"If you don't have a scent that you want in there, buyers are going to smell whatever is going on in that room. So if it's been closed up or doesn't have a lot of air flow there will be more of a musty, damp, or a less desirable scent," explains Ruffolo.

All and all it just makes sense to have scent as a part of selling your Hollywood Hills home.

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West Hollywood’s Foxtail is open for business!

West Hollywood's Foxtail with its art deco, art nouveau decor has opened! But it’s not just another pretty face; it’s SBE’s Sam Nazarian and Brent Bolthouse’s new gorgeous supper club.

After work sip one of many signature cocktails such as Uva Bellas (green grapes with gin, St.-Germain, lemon juice and orange bitters) at the bar or on one of the long banquettes at geometric marble tables in the lounge.
Reserve a seat in the luxurious dining room which features custom-cast plaster wall friezes, dark wood accents and mirror tiled ceilings and order oysters and caviar or French bistro fare such as: onion soup gratine, seared tuna nicoise, lamb ragout,steak frites with fried egg and black truffle and to die for sweets such as lavender pot de creme.

Soon the upstairs area will open which will feature a swank dance floor as well as a cozy enclosed patio with a fireplace.

You will not want to miss this hot new venue!

Foxtail, 9077 Santa Monica Boulevard, between Doheny Drive and Nemo Street, West Hollywood

Selling a Hollywood Hills Home

In a down market, whether you're selling a multi-million dollar mansion or a condo, pricing it well affects how long it sits on the market. When it's a buyers' market, time is of the essence, and the longer a house sits, the less it will eventually sell for. Especially if you have a high-quality property, don't be afraid to sandbag the listing price to garner more interest. Chances are the money you lose here will be less than if you listed it higher and subsequently reduced the price.

Tip #1: Proper Pricing

Economists, brokers and home sellers agree a mispriced home sits on the market longer, and eventually sells for less than a similar, correctly priced home. The same theory holds for trophy properties. Slightly lowballing a price upfront often results in a higher sales price, because it generates greater interest and more offers. It is also less likely to languish; when this happens, buyers wait, hoping its price will go further south. In a down market, that's a good way to go for houses that, in an up market, would have multiple offers.

Tip # 2: Employ An Internet Savvy Hollywood Hills Realtor
More often that not, realtors add enough value to the sale of your home to make up the 6% of the sale price they will receive in commission. The National Association of Realtors (NAR) estimates that three-quarters of home buyers start their searches online. The most important thing is to choose a realtor with online presence and who is familiar with your neighborhood. Search online on sites such as Craigslist.com or type in Hollywood Hills Realtor in Google.com. Pick a realtor with heavy internet presence. In a down market, a realtor with internet marketing knowledge becomes critical, because he or she knows how to market to not only local buyers but also to potentially thousands of buyers searching for a Hollywood Hills Real Estate Listings on the internet.

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Diverging Jumbo Rates, should you take an ARM?

Jumbo Mortgage rates are highly sensitive to expectations for the U.S. economy.
When the economy is expected to sag, mortgage rates tend to fall
When the economy is expected to surge, mortgage rates tend to rise


Currently, the economy is expected to sag and surge in the later half of the year. I disagree but what we live with what the market gives us. This is why adjustable-rate jumbo loan mortgage rates are holding their ground as fixed-rate jumbo mortgage rates increase.

Fixed-rate and adjustable-rate mortgages are not as interchangeable as in the past and it's mostly because the Federal Reserve's routine has created expectations of runaway inflation later this year.
The "Fool in the Shower" bit goes like this:
A fool gets in the shower and it's freezing cold
To get warm, he flips the hot water on to full blast
Before long, the water goes way past warm and into hot. It burns him.
The fool turns the water back to cold and repeats the process in reverse.

The Federal Reserve is following the same pattern. The economy showed signs of weakness (i.e. being cold) last year so the Fed took steps to warm it up. Since September 2007, the Federal Reserve has shaved 2.25% from the Fed Funds Rate. With each successive cut, though, the Fed is turning the proverbial water farther towards "hot". This makes it more likely that the economy will go from "ice cold" to "scalding hot" sometime later this year.


Overheated means inflation comes back and now investors are taking notice and a quarter of all jumbo mortgage loans are owned by foreign investors and they don't like our falling dollar.
The growing likelihood of inflation is now priced into longer-term mortgage rates. Inflation erodes the value of mortgage bonds so it's causing long-term mortgage rates to rise.
Meanwhile, short-term rates are still reflecting the short-term economic weakness to which the Fed is responding. In the near-term, the absence of inflation is holding rates low for a host of products, including:
The 1-year ARM
The 3-year ARM
The 5-year ARM

And that's where it ends. There is a increase right at the 7-year marker. The 7-year ARM along with the 10-year ARM and the fixed products are all priced for the Fool in the Shower bit, jacked higher for inflation and the eroded dollar. Of every client is different, you should match your time frame for the home with your mortgage as best as possible. With all the consumer choice comes enormous responsibility.

Two months ago, the spread between a fixed-rate mortgage and a shorter-term adjustable-rate mortgage was .125%. Today, the gap is 0.625%. We are currently advising clients to consider the 5Y and the 10Y jumbo loan interest only. We often advise to go interest only and max out all retirement accounts with the funds otherwise allocated to the mortgage principal.

For a customized proposal from a banker contact us anytime. Having a solid financing plan locked in allows you to work with a premier Hollywood Hills real estate agent of the Rivas Group to find a home or estate that provides a lifetime of happiness.