The Year of the Short Sale

The Orange County Register recently reported some staggering statistics regarding the state of the real estate market here in southern California. Short sale transactions have increased by 74 percent this year (Orange, Riverside, San Bernadino, and Los Angeles counties).

Increased short sales may be a blessing in disguise for an area like southern California that witnessed property values skyrocket to unsustainable values in recent years. Short sales have several benefits:

• Removes housing inventory from the market. This is critical for housing market recovery.
• Allows struggling home owners to absolve debt on houses which will take years to return to values seen a few years ago.
• The decrease in prices finally allows those who were priced out of the market in the mid-2000s the chance to buy a home.

There have been nearly 13,000 short sales in southern California in the first half of 2010. The newly implemented Home Affordable Foreclosure Alternatives (HAFA) program is a government program designed to encourage short sales. As HAFA kicks into gear, the result will likely be an increase in the number of short sales across the country.

As the number of short sales increase, the question remains whether it makes more sense for a bank to accept less money than is owed on a home loan through a short sale, or to negotiate a principle write-down or loan modification with existing homeowners who can no longer meet their payments. One way or another, the bank is going to take a hit.

A fellow ActiveRain Real Estate Agent recently published the following blog post on short sales that I thought was a well-written and thorough guide of questions and considerations....

Via Bill Gassett Metrowest Massachusetts Real Estate (RE/MAX Executive Realty):

Understanding Short Sale Transactions | A Guide to Short Sale Facts & Myths

A short sale unfortunately has become a common buzz word in the Real Estate industry. For those that have been hearing the term "short sale" and don't quite understand what it means, a short sale is a legal lender approved solution designed to assist a home owners who is financially strapped to get out from under their mortgage debt.

A short sale is negotiated through the mortgage holder of an owners home where by the mortgage holder agrees to take less than what home owner owes on the property.

A quick example of a short sale would be if a home owner owes $400,000 on their current mortgage and their home is only worth $350,000. The lender in this example would agree to take a short fall of $50,000 at closing.

In some cases the mortgage holder may completely wipe out the debt and the home owner does not have to repay the 50,000. Many lenders may require a seller to sign a note and repay the debt over a certain amount of time. Typically the debt will be reduced and the owner may receive favorable repayment terms of the short fall.

There is quite a bit to know about short sales from both a buyer's and seller's perspective. Successfully completing a short sale is about understanding the process.

Many consumers make extremely poor choices by working with Real Estate agents that don’t have a lick of experience with getting short sales approved. Picking a good short sale Realtor is critical to your success.

The following is a number of specific topics about short sale transactions that you would want to be aware of if you are planning to either buy or sell one of these types of distressed properties.

Stop making mortgage payments during a short sale? ~ Whether or not a home owner should continue to make mortgage payments is a common question that many sellers want to know when considering a short sale. The most common answer to this question is YES, however it really depends on the lender! Click the link to understand all the considerations.

Picking the right short sale Realtor ~ Picking a Realtor to work with in a short sale is very different than a traditional transaction. You want to work with an agent that has experience successfully closing this type of transaction. Remember as a seller you could potentially be facing a foreclosure. There are many mistakes that are made by agents handling short sales. Don't get caught with your pants down!

Questions to ask a short sale listing agent ~ If you are thinking about buying a short sale there are some specific questions you can ask the listing agent to determine the probability that the short sale will be approved or not. These short sale questions will also help determine if the Realtor handling the short sale knows what they are doing!

Acceptable hardships for a short sale ~ On many occasions when doing a short sale the lender is going to require some kind of hardship on the part of the seller. Short sale hardships however, have become less rigid recently and some lenders are becoming more concerned strictkly on whether the short sale would benefit them more than a foreclosure sale.

Short sale tax consequences ~ Understanding the tax consequences in a short sale is one of the most important considerations for a home seller. Whether the short sale home was a primary residence or an investment property can have different tax implications.

Getting short sale debt released ~ Getting the debt released on a short sale is obviously a very big deal. Many Realtors that are working with short sales don't have any knowledge of how to get the debt released. A seller needs to pay particular attention to this detail as you can expect to be hearing from a collection agency without it!

When to do a short sale home inspection ~ This topic is important to understand from both a buyer's and seller's perspective. A home inspection should be done before short sale approval and NOT after. Read the article to understand why it benefits both the buyer and seller to do so.

Strategic default vs short sale ~ There are many home owners who are deciding just to walk away from their homes. Fannie Mae has started to crack down on this practice and is now penalizing borrowers from getting a mortgage for up to seven years! A perfect alternative to a strategic default is a short sale.

By the way, I sell Real Estate in Los Angeles, so don't hesitate to contact me for any questions regarding the market here in Urban L.A.!

Movin' On Up or All Dressed Up with No Place to Go?

The L.A. Times recently commented on the ultra-posh Century project in downtown Century City, noting that construction has finally been completed and that pricing has been reduced by as much as twenty-five percent on the building's 140 deluxe units. No surprise there.

However, as a huge proponent of urban stack development in L.A., I am continually baffled that developers still seem behind the eight ball when it comes to the basics. Designing full service buildings that feature aesthetic details that turn dwellings of this caliber into 'homes' instead of glorified Cracker Jack boxes, seems to elude even the savviest of real estate developers here in Los Angeles.

Case in point, the oblong architectural design of The Century translates into a noticeable curvature to the interior walls of the units, leading to a myriad of troubles for interior designers and their clients. Try sticking a King-size bed against a concave wall and see how much space is left in the room for side tables, dressers, and wall-mounted televisions.

The W Hollywood Residences are another classic example of wasted space and ill-fated design that fails to maximize the square footage of the units. Due to the nature of the concrete construction, the building abounds with dense pillars found smack-dab in the middle of living rooms and bedrooms, leaving even the most creative of urban nesters scratching their heads in search of design solutions.

At an area record of $2,700 per square foot at The Century, the units should be flawless; a shining example of perfectly flowing Feng Shui and a slam dunk case study for even the clumsiest student of interior design. The curved walls at The Century are an obvious challenge, but I've yet to see any new high-rise development in Los Angeles that is entirely on point. Oddly, the luxury developments seem to have some of the most fatal imperfections. There is always something missing, some consideration made after the fact, or some sheepishly camouflaged character flaw that somehow went unnoted while finer thought was being given to the particular hue of the velvet ropes to be found at the valet stand.

No matter what caliber of amenity or service offered in these buildings, if Los Angeles truly aspires to become the next Big Apple, developers have got to stop putting on their skirts before the pantyhose. If the underpinnings are missing or fail to adhere to the principle that form must follow function, anyone who desires a full service lifestyle and can afford $2,700 a square foot will simply move to a well-designed Bel Air estate with their butler in tow.



By the way, I sell Real Estate in Los Angeles, so don't hesitate to contact me for any questions regarding the market here in Urban L.A.!

Commandments of Communication in the 21st Century

I have a memory from years ago of getting caught in a sudden California thunder storm, no umbrella to be found, searching frantically for the the nearest source of shelter which turned out to be a musty, warm, and dry telephone booth, still lingering with the scent of its last caller. I don't think I've seen a phone booth in fifteen years and God knows what's become of our super heroes.

Aww, those were the days... simpler times, they were. I remember the comforting pulse of my rotary telephone that seemed to take an eternity to dial a number, jerry-rigged with multiple phone cords to extend to every corner of the house. Remember pagers?? hahahaha....we really thought we were something, didn't we?

Now, we are quite simply inundated with so many instantaneous modes of communication that there is no clear protocol or best practice for conveying our message. True understanding and clear, concise delivery of our thoughts is hard enough. Even with the advantage of face-to-face interaction- body language, facial expression, and vocal tone- misunderstandings still ensue. The telephone has it's obvious limitations, but at least we gain the benefit of hearing tone, inflection, pregnant pauses, and other auditory cues. Email has become the primary method for communication in business these days, and though it provides a convenience and ease of use that has revolutionized the way we get our work done, it still can be hazardous when words are misinterpreted with an assumption and perception of accompanying tone that may indicate an entirely different meaning for the reader than what was originally intended by the author.

Most recently, I had a misunderstanding with an agent I was working with on a deal, wherein the agent sent me a text message regarding the need to meet to exchange some disclosures. I did not understand the nature of the request and the agent was lax in being explicit. We entirely misunderstood one another, created a lot of inconvenience for both of us, and wasted a lot of time and energy when we could have easily chosen a better form of communication to solve what was a very benign predicament.

Personally, I have had numerous misunderstandings with friends, based on ambiguous or vague text messaging, that has caused my overactive mind and slight paranoia to get the better of me. All of this ambiguity, I find, just creates a lot of wasted energy and brain damage. Consequently, I have come up with my Commandments of Communication, effective immediately, for clients, family, and friends. They are:

1. I am an interpersonal, kinesthetic communicator. Sometimes I am dense and slow. THE BEST WAY FOR ME TO TRULY UNDERSTAND YOUR NEEDS, QUESTIONS, CONCERNS, AND THOUGHTS IS TO HAVE A FACE-TO-FACE CONVERSATION WITH YOU. This is the best way for you to be heard, for me to understand, and for you to feel confident in knowing that I understand you. It is also the best way for me to get to know you and what makes you tick. This is my preferred method of communication, however, if this is not possible, please proceed to commandment #2.

2. The next best way for us to understand one another is for you to PICK UP THE TELEPHONE TO CONVEY YOUR MESSAGE. I may not get the benefit of reading your facial expressions and non-verbal cues, but at least we will have the advantage of experiencing one another's vocal tone and inflections. It only takes a moment to dial my number and if I don't pick up the phone, please leave a message that clearly states your intent. I will call you back when I am available, to clarify and confirm your message. If your message contains details that you wish to reiterate or commit to written form, please proceed to commandment #3.

3. EMAIL IS A GREAT WAY TO COMMUNICATE AND MEMORIALIZE FACTUAL INFORMATION ONLY, but don't expect me to interpret tonality. If you wish to express emotion in addition to facts, please refer to commandment #1 or commandment #2, in order of preference.

4. TEXT MESSAGING IS FOR LIMITED USE ONLY! Feel free to send me the 'joke of the day,' or a funny picture by text message, but do not ask me questions or otherwise send information that requires me to respond. I will not. Do not expect me to engage in back-and-forth banter, and do not send me elaborate direction or instruction via this form of communication. If we have already communicated by some other form, and either one of us has requested a phone number, address, or short and concise bit of information in the form of a text message, then by all means, send me one. Otherwise, please rely on methods of communication outlined in Commandments #1, 2, and 3.

Perhaps my newly coined Commandments are a bit rigid but, frankly, I have grown nostalgic for good old-fashioned person-to-person interaction with my clients, colleagues, and friends. Not only does this approach to communication reduce ambiguity and misunderstanding, but I believe it also helps to build an unspoken element of trust between parties in a way that no form of written communication can.

I am looking forward to experimenting with these new 'best practices' for communication and I am hopeful that by literally trying to 'see eye to eye,' keeping it simple, and striving to understand the person behind the message, that life will take on a truer and simpler form. Stay tuned!

By the way, I sell Real Estate in Los Angeles, so don't hesitate to contact me for any questions regarding the market here in Urban L.A.!

50th Anniversary of the Hollywood Walk of Fame

The Walk of Fame celebrates its 50th anniversary in 2010 and numerous events are scheduled to mark this important anniversary.
The celebration. coined “Walk the Walk,” takes place on Sunday, July 25 from 11:00 a.m. to 6:00 p.m. The day-long festival is Hollywood’s “open house” with tours of iconic Hollywood theatres and studios, as well as live music, performances, movie screenings and activities for the whole family. Events have been scheduled throughout Hollywood, and many are offered for free or at a deep discount for this one day only.
Four key locations – Hollywood & Highland Center including the TV Guide studio, Egyptian Theatre, Capitol Records and the Montalban Theatre – will showcase the five categories of stars: motion pictures, television, recording, radio and live theatre – and of course the Walk of Fame itself.
Many restaurants, retailers and attractions will also join in the celebration by offering discounts, special menu items and giveaways. Information stations will be located at the four locations with free programs outlining the schedule of events and participating businesses and attractions. Thousands are expected to join in and “Walk the Walk,” visiting the stars that transformed a Hollywood sidewalk into a historic, international icon.
The schedule of events is as follows:
Sunday, July 25
11:00 a.m. – 6:00 p.m.
11:30 a.m. – Special Walk of Fame Ceremony for the late Louis Prima in front of The Montalban Theatre, 1617 Vine Street.
LOCATIONS: Hollywood Walk of Fame – Hollywood Boulevard, Vine Street and beyond

Hollywood & Highland Center, 6801 Hollywood Blvd.
• Inside TV Guide studio; courtyard radio broadcasts
The Egyptian Theatre, 6712 Hollywood Blvd.
• Tour of historic theatre; live music in the courtyard; screenings of Forever Hollywood
Capitol Records, 1750 N. Vine Street
• Inside the famous Studio A; live music outside building
The Montalban, 1615 N. Vine Street
• Stage performances; rooftop soccer competitions
For more information, visit the Hollywood Chamber of Commerce.


Once you've 'Walked the Walk,' check out The Piano Bar on Selma Ave. in the heart of Hollyweird. It had been a while since I've visited this little spot but a recent drop in proved a pleasant surprise. Maybe it was the progressive jazz band with their effortless cool, or the laid back and easy going locals that made the place feel welcoming, comfortable, and worth a second cocktail. Whatever it was, the New Orleans- style vibe and the dimmed, shadowy lighting make this a happy hour spot worth revisiting.

Big feet?...Don't eat Meat.

Did you know that 37% of American women wear a size 9 or larger shoe? In 1987, only 11% were in that size range, according to a recent study by consumer market research company, NPD Group.

I have become enamored of my latest new idea. I want to design shoes. I know it sounds silly, but shoe hunting for my size 11 feet has become all but an obsession the last couple of years as I have finally resigned myself to the fact that I don't want to have bunions and hammer toes from squishing my feet into ill-fitting size 10's. The problem of finding shoes in my size has definitely improved since I was twelve (yes, I wore a size 11 even then) and had to special order the same old boring pair of Keds from Nordstrom at the beginning of each school year. At some point, I just started wearing the shoe boxes and water skiing required a lot less gear, but as an awkward adolescent, I always felt like a leper on my own island... the big-footed outcast.

Today, however, is a different story as many more people are just bigger than they were twenty five years ago. Why is this??

Here in the United States, a huge portion of our American diet is based on the consumption of poultry, beef, and dairy. It has only been in the past couple of years that I have begun to understand the true horror of the reality of our agricultural system and the ways that we manipulate the mass production of our food sources. There is a lot of controversy surrounding the pros and cons of meat consumption, and aside from the nutritional debate, the fact that our meat, poultry, and dairy are pumped full of growth hormones really gives cause for some serious thought.

Though theoretical at this point, there is reason to believe that the cause of children reaching puberty 5 years earlier than they did just 100 years ago and a major reason that obesity has gotten so out of control is because the animals that we eat are filled with growth hormones that unnaturally increase the rate and size at which they grow and reproduce. It would stand to reason, then, that humans would be similarly affected by these same hormones that remain present in the artificially enhanced animal products that we consume.

When choosing meat, opt for grass fed-over grain-fed beef. Studies have shown that meat from grain-fed animals raised in feedlots often contains more total fat, saturated fat, cholesterol, and calories than grass-fed beef does. Products from grain-fed animals also contain less vitamin E, beta-carotene, vitamin C, and omega-3 fatty acids. Cattle raised on low-fiber grain diets are also prone to a condition known as "subacute acidosis." These grain-fed animals are often given chemical additives along with a constant, low-level dose of antibiotics to keep the cattle from contracting any fatal diseases. When these antibiotics are overused in the feedlots, bacteria become resistant to them, and these bacteria are passed on to the consumer in the beef.

The bottom line is that we must question and scrutinize everything that we are fed in today's day and age, from food choices, to politics, and everything in between. Do your homework and always ask questions! Wishing you health, wealth, and wisdom!

By the way, I sell Real Estate in Los Angeles, so don't hesitate to contact me for any questions regarding the market here in Urban L.A.!

Hollywood 360

In the harsh light of recent economic conditions and an accelerating barrel wave of population growth, threats to our quality of life and the environment reveal that our current form of growth is just not working. Green space continues to vanish, air quality remains unacceptable, and our dependence on automobiles seems to have no end in sight. With half the world population now residing in urban, or densely populated areas (source: United Nations Population Fund, UNFPA.org), the future of development depends heavily on the integration of sustainable building practices, transit-oriented development, and thoughtfully planned urban design that lends itself to a variety of lifestyle preferences.

This shift to a new paradigm of growth is no longer an option, but a necessity.

Los Angeles is taking note. Where once new development, transit systems, and public infrastructure were developed to fulfill an immediate need of the time in Los Angeles, the shift towards a systematic approach to growth that considers the future needs of the city’s urban communities has become a recent phenomenon. Now, there is movement towards new land use standards and business strategies that promote an efficient urban framework that emphasizes a pedestrian friendly city experience, environmentally thoughtful building practices, and expansion of public transit that links smaller communities to one another.

Most recently, Hollywood has become a shining example of this type of proactive planning. As the center of the motion picture industry, Hollywood has evolved from an outlying residential community into an increasingly dense urban center. In doing so, the importance of preserving its historical and iconic references, while establishing progressive development techniques that weave mass transit into the fabric of the community has become paramount.

Hollywood has taken its first wobbly steps towards marrying public and private interests that strive to achieve this type of new urbanism. The opening of the W Hollywood Hotel & Residences at the corner of Hollywood Boulevard and Vine Street provides evidence tha

t this type of high-quality, high-density development is exactly what Tinsel Town needs. As a critical component of the development, expansion of the Metro Red Line has encouraged pedestrian foot traffic and high flow patterns of mass transit users, while street fronting restaurants, retail, and neighborhood anchors, like Trader Joes, have moved in to serve an increased demand.

Though this first step at transit-oriented development in Hollywood has its many virtues, the community has an arduous journey ahead towards the development

of a true, sustainable urban core. It stands to reason, then, that in order not to repeat the mistakes of yesterday, we must clearly define our goals for tomorrow.

To that point, the Los Angeles Community Redevelopment Agency is defining a vision and set of principles that will provide clear direction to developers, landowners and city decision makers. The agency has enlisted the assistance of independent consultants in the development of two distinct plans that together address the changing geography of Hollywood. The plans provide guidance for the future development of the Sunset Boulevard Civic District and the Hollywood Boulevard/Franklin Avenue District, containing the major corridors and sub-neighborhoods of Hollywood.

In summary, the plans provide detailed and intricate development guidelines that strive to achieve the following goals:

1) Preservation of the Existing Setting- Hollywood’s built environment is largely shaped by landmarks from the 1920’s through the 1950’s. These landmarks and historic districts, in addition to the character of residential neighborhoods, shall be preserved as the area’s greatest physical design assets.

2) Development of a Pedestrian Environment- enhanced pedestrian pathways that provide a safe and comfortable environment for its users, while providing linkages between open space networks. Attention to massing, scale, and details of existing and new buildings that promote an interesting and vital sidewalk experience shall be emphasized.

3) Architectural Continuity Between New & Existing Patterns of Building Scale & Detail- An overarching design framework that conserves the existing historic setting and realizes new and creative building additions, while providing a transition in scale and intensity of development between higher density commercial areas and lower scale residential neighborhoods.

4) Realization of New Public & Private Open Spaces- Enhance the existing open space as usable open space for residents, while creating additional open space opportunities and amenities that serve a wide variety of populations and lifestyle preferences.

5) Formation & Protection of Skyline- Sensitivity to preservation of open view corridors for distant views to the Hollywood Hills while providing for a distinct urban form and skyline for Hollywood.

Though urban design guidelines provide a necessary framework for the systematic reinvention of the area, they are merely one segment of a very large puzzle that when pieced together will reveal the actualized vision of a modern, neo-Hollywood. Numerous and far-reaching considerations include:

· Mitigation of water scarcity and other resources

· Timely and essential integration of public transit

· Creation of ‘green’ capital that encourages developers to invest in natural materials as part of their up-front costs

· Development of cohesive partnerships and synergistic cooperation between various public and private entities

· Thoughtful management of neighborhood and stakeholder concern and opposition

· In-depth understanding of highest and best use practices based on the needs, desires, and lifestyles of the consuming community

· Development of ample parking solutions & concepts

· Adoption of complete street principles and right-of way standards for pedestrians, private, and public transit.

The journey towards an urbanite utopia will undoubtedly lead community innovators down a long and winding road. However, with intelligence, creativity, and tenacity, the community’s deeply committed urban pioneers will overcome these challenges to lead the city back into the limelight, with a promise that Hollywood will have its heyday once again.

For complete review of the CRA’s Draft Urban Design Standards & Guidelines for Hollywood, please visit cra.la.org