Coachella Valley Real Estate By Kimberley, SFR, HAFA, GREEN
Residential, Equestrian, Land
I Do Real Estate The Same Way I Played Polo – To Win!
Coachella Valley Properties By Kimberley, SFR, HAFA, GREEN
Residential, Equestrian, Land
I Do Real Estate The Same Way I Played Polo – To Win!

Archive for January 2012

La Quinta Activities for Sunday, Jan. 29

La Quinta Activities for Sunday, Jan. 29

I don’t normally post on what to do in La Quinta, but the weather is unbelievable, Buyers are here in droves, and the day AND night life is jumping today!

  • Southwest Art Festival:  This is an annual art festival and truly supurb.  Located at the Empire Polo Club off of Monroe in Indio, the fields are covered in tents and artists display their “Southwest art works.”  There will be approx. 250 artists displaying in categories such as Clay, drawing, glass, jewelry, metal works, painting, photography, printmaking and sculpture.  www.southwestartsfest.com
  • Hot Rod & Custom Car Show:  The 6th annual car show will be held today between 11 a.m. and 4 p.m. at the community Park Center at 77-865 Avenida Montezuma in La Quinta.  More than 1000 cars and motorcyles will be ondisplay.  Music, raffle, food and a beer garden..what could be more fun?  And did I mention that it’s FREE?  760-564-3199 for info.
  • HITS Horse Show:  In Thermal.  Classes are beginning, competition will be fierce, lots of booths for food, photography and horsey gifts and equipment.  A good time over in Thermal and all the way through March.
  • Cantina Party:  Tonight.  Free and a live band will be there.  Casual fun.  No Polo due to Quarantine, so everyone will be ready to par-tay!  Eldorado Polo Club off of Madison in Indio, CA.

So..don’t say you don’t have anything to do.  You can always just enjoy the gorgeous weather with a hike, bird-watching, golf, biking or heading over to Old Town for a cup of coffee and one of those deliscious Muffins!

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Palm Springs Valley real estate prices are rising..

Palm Springs Valley real estate prices are rising..

Since about the middle of 2011, I have been seeing a small but steady uptick in local prices.  The bottom price point of $250,000 and under is saturated with Buyers.  Investors and also first time home buyers.  The numbers of foreclosures and Short Sales have dropped significantly.  This trend will most like go through 2012 with the price/sf increasing a small amount.

Then there is the $500-$800,000 market.  Again..I’m seeing lots of buyers.  Sellers have priced their homes much more aggressively and they are moving.  There is still room to negotiate here, but less inventory than a year ago.

Luxury hoemes are the hot market.  The price/sf has dropped over 30% and in some developments as much as 50% from the peak market of 2006.  Investors in this price point have increased and I expect this market to continue to see investors and home buyer numbers continue to rise through 2012.

Palm Springs Valley Real Estate Economic Summit Update:

This is great news for those of us that live here year round.  It is also an indicator that it might be time for those of you looking to invest or own in our beautiful winter, resort valley to make that offer!

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Short Sales and Deficiencies in California; Round-up.

Short Sales and Deficiencies in California; Round-up.

This is not news, but it IS critical for any Seller thinking about listing their home as a Short Sale in California in 2012. Remember the MOST critical thing..the Debt Forgiveness Act expires on 12/31/2012. Will it be extended? Most likely. However..do you want to take that chance? Read on for a recap of our anti-deficiency law, 580e. It’s a fantastic protection for Short Sale Sellers in California!

One of the first things my Short Sale Clients ask me is, “How does the Deficiency work?” What they mean as a Short Sale Seller is, “Am I going to be sued for the deficiency by my Lender?

In a word, “no!”

The year of 2011 saw a very spescific change to the anti-deficiency law for the state of California. Section 580e of the California Code of Civil Procedure came into effect on Jan. 1. This law generally prohibited a FIRST TRUST DEED LENDER from obtaining a deficiency judgment. This law applied to 1-4 residential units.

Then on July 15, 2011 a bill was introduced that greatly broadened the powers of section 580e.

Now section 580e covers many types of mortgage loans for 1-4 residential units, including..
•Purchase Money
•Rate and term refinance
•Cash-out refinance,
•owner occupied
•rental
•second home or vacation home

(This Law has it’s exceptions! Other types of liens such as judgment liens, tax liens, or HOA liens are NOT exempt from deficiency pursuit by the note holders!)

WOW! Lots of encouragement from the Government to do a Short Sale instead of a Foreclosure.

So..you are protected from the second lien holder pursuit as well now. Your Lender may NOT..
•collect a deficiency
•have a borrower owe a deficiency
•request a deficiency judgment
•require a borrower to pay to get a short sale approved
•require a borrower to waive their rights

Tips:

Sellers: Although a Short Sale Lender cannot demand you contribute to get your short sale done, you may offer to pay something to get a deal to work.

Buyers: Carefully consider before you write your offer, HOW MUCH money a Lender is being asked to write off. Sometimes, if a Lender has to write off a huge deficiency, they COULD choose to not do a Short Sale and pursue their other options. Not a huge likelihood in California..but think about it.

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Canadian Investors Buying American Foreclosures..

Canadian Investors Buying American Foreclosures..

If the Banks won’t do it, private investors will!  Investors from Canada are coming to the desert in droves, picking up Short Sales or Foreclosures and leasing them..I have several Buyers from both Vancouver and also Calgary that are doing just that.  They are also buying homes to live in themselves in our desert paradise, but rentals are a great return on your money.  Especially when you buy them for much less than it would cost to replace them..as our housing market is right now.

This investment group is made up of Canadians mostly, but I suspect there are plenty of American Investors in it also..

The La Quinta and Palm Springs area real estate markets in general are on fire..not like the craziness of the 2004-2006 years.  This is a reasonable, controlled burn.  Houses are being purchased, leased, or lived in with the sane expectations that in 5-10 years, there will be resale profits.  Of course, there ARE contractors and groups purchasing “fixers” and re-selling them when done..that is very popular here.

If you don’t live here, probably not best to purchase “flippers”..pretty risky over-seeing your help.  Cosmetic fixers..sure.  Buy low, lease at a good return/month, and plan to sell at a comfortable profit down the road..

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Palm Springs Valley; 13% drop in Foreclosures

Palm Springs Valley; 13% drop in Foreclosures

Palm Springs Valley, saw an overall drop of 13% in the numbers of Foreclosures (month of December).  That’s good news, but may be due to several things which could change.

1.  There was a moratorium in place for the Holidays.  That will end.

2.  Loan Mods are being processed much more efficiently.  That should continue to keep numbers down.

3.  Short Sales are being processed and CLOSED much quicker.  Again..should help keep numbers down.

December Foreclosure numbers in our Valley by City: (Realty Inc. source)

La Quinta:  121 total  Drop of a huge 30%

Indian Wells:  11 total  Drop of 8%

Rancho Mirage:  66 total.  Drop of 3%

Palm Desert:  138 total  Drop of approx. 15%

Palm Springs:  Total of 180  Drop of approx. 23%

Thermal:  37 total  Increase of 37%

Coachella Valley Total:  984  Drop of 13% on average.

On the streets every day as I am (in real estate of course!), I am witnessing a ton of buyers.  I am being outbid on offers that would have flown through just a year ago.  The First time home buyers are now surpassing the Investors in what they will pay/sf and also because they have cash, and loans are available again.  Good news for La Quinta and the Palm Springs Valley!

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Do your Short Sale in 2012; Debt Forgiveness Act expires 12/2012!

Do your Short Sale in 2012; Debt Forgiveness Act expires 12/2012!

Critical that homeowners considering listing their home as a Short Sale do it in 2012..and in time to CLOSE by 12/31/2012.  Why???  The Debt Forgiveness Act expires then!  In California, although you will receive a 1099 for the debt that was forgiven, the debt is wiped out on primary and secondary residences..both first and second PMl’s.  This helps you so much if you are not insolvent.  Consult your CPA, then get that property listed and CLOSED in 2012.

Will the law be extended?  I sure hope so.  If not, Palm Springs and the La Quinta area will see more Foreclosures.  We are really stabilizing in La Quinta.  Prices are actually going up!  Investors are finding that First time Buyers are able to beat them out in their bids!

Debt Forgivenss Act explained 

If you are underwater on your mortgage and considering a Short Sale, get it listed NOW!  Your final closing HUD must be dated no later than 12/31/2012 to qualify for your debt forgiveness.  Consult your CPA, then get your property listed and CLOSED in 2012!  Don’t wait and take a chance!

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How Polo Changed a Life..

How Polo Changed a Life..

So many people think Polo is the “sport of Kings”..I know differently.  I played it professionally and did it by the skin of my teeth, and working constantly to figure out how I could play the game with the animals I love so much.  Watch this video to inspire you..it is so special!

http://espn.go.com/espn/e60/story/_/id/7093372/philadelphia-inner-city-students-follow-unusual-path-learn-play-polo-win-national-title

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Norman Estates; PGA West. JUST LISTED.

Norman Estates; PGA West. JUST LISTED.

Norman Estates at PGA West, in La Quinta.  $1,000,000.  There are only 58 semi-custom homes in the Norman Estates at PGA West.  The Architect, Frank Stoltz, hit a home run with this Tuscan themed neighborhood with homes set well back from the tree-shaded street.  Lots are generous..ranging from approx. 14,000 sf to approx. 20,000 sf., so neighbors are not on top of each other.

This home sits on one of the premier sites of almost 18,000 sf.  Elevated and pie-shaped with extensive, lush landscaping including 7 types of citrus trees and spectacular rose gardens.  Approx 3200 sf + an additional 200 sf because the golf cart garage has been converted into an office.  The main home is 2bd/2.5 baths.  The mast er bedroom has Southern light and views, and the 2nd bedroom has extensive built-ins.  The home was oriented so that the interior courtyard is North providing year round shade, and the pool/spa and outdoor cook station are at the back with Southwest Mountain and Fairway views..truly the best of all worlds!

The rear of the home at Norman Estates

Southwest Fairway and Mountain Views

Homes don’t come up in the Norman Estates very often and when they do..they get a ton of activity!  Truly special, this gated enclave stands out amongst golf course neighborhoods.

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Palm Springs’ First Bank..a touch of History..

Palm Springs, California is known for it’s history..mostly known for it’s Celebrity History to be more accurate. But there is much more. Nellie Coffman’s Inn was the catalyst for much of Palm Springs original business growth. People came to the desert for both rest and relaxation, and also to try to heal Tuberculosis. It was thought the dry air and warm temperatures would help cure it..and they did appear to help. Our many hot springs added to the healing process.

Back to Palm Springs first bank. None of the big banks wanted to touch Palm Springs due to our seasonal life here..who could make a profit on people that only lived her 6 months a year? Bank of America offered Palm Springs citizens a deal..and they took it!

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Bank of America Short Sale Buyer Substitution

The Sun is rising on B of A Buyer substitutions

Bank of America has been saying for months now that “if your Buyer walks in your Short Sale Transaction..don’t worry!  We’ll allow a new Buyer to substitute right on in within 48 hours!”  That was a joke.  Never happened.  Now it appears, they have changed that idea and now it looks like this…

This came to me via e-mail from Bank of America Short Sale Agent Update which is the same format they sent the last info in.  I LOVE the idea of substituting a Buyer right on in.  Eight days appears more reasonable to me since it seems to take forever for B of A Short Sale department people to learn any new rules.  I am hopeful!

8-Day Window to Submit Backup Offer

Based on agent feedback and to reduce overall cycle times, we are making a change to the short sale process. If it becomes necessary to submit a backup offer during a short sale, you now have a reduced window for making the submission. Instead of 14 days, backup offers must now be submitted within eight calendar days after the initial offer becomes invalid.

 

When a backup offer becomes necessary:

  • Contact your short sale specialist immediately.
  • Let the specialist know if you have a backup offer to submit.

Within eight calendar days, resubmit the listing data, submit the short sale offer, and upload the offer documents and supporting documents. Any backup offer will require analysis and investor approval, regardless how similar it may be to the previous offer.

 

If no backup offer is available:

  • The short sale will be closed in Equator by your short sale specialist.
  • You should return to marketing the property.
  • You may initiate a new short sale in Equator when you receive a new offer on the property.
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