Real Estate Comeback? Not So Fast - Malibu, CA Patch

Last week, the Wall Street Journal reported that the housing market finally passed a milestone.

The newspaper reported 44 of the surveyed economists believe the housing market has reached its bottom; only three do not. Though the Journal reports that the housing bust is over, they also report that plenty could still go wrong.

?The biggest threat is a large shadow inventory of unsold homes, homes which owners won't put on the market because they are underwater, homes that will be foreclosed eventually and homes owned by lenders," the article states.

Those homes are trickling onto the market, slowed by government efforts to delay foreclosures and a glut could reverse the recent upswing in prices.

Recently, California has taken action that plays right into the theory that the government is delaying foreclosures, which could eventually cause a flood in the future.

Governor Jerry Brown signed a Homeowners Bill of Rights this month. The law goes into effect on Jan. 1, 2013, and is designed to halt the abusive tactics of loan servicers and protect struggling homeowners who are trying in good faith, to renegotiate their mortgages.

It is designed to keep financially troubled borrowers in their homes, by simplifying dealings homeowners and their banks or loan servicers.

According to the California Association of Realtors (CAR) the Bill or Rights has four major components:

• The law will make California the first state to prohibit ?dual track? foreclosures that occur when a servicer continues foreclosure while also reviewing a homeowner?s application for a loan modification;
• Create a single point of contact for homeowners who are negotiating a loan modification;
• Expand notice requirements that must be provided to a borrower before taking action on a loan modification application or pursuing foreclosure; and
• Allow injunctions against foreclosure until violations are corrected and permitting civil penalties against servicers that file multiple, inaccurate mortgage documents or commit reckless or willful violations of law.

These new laws make California the first state in the nation to put provisions from the National Mortgage Settlement into law, which covers the nation?s five largest mortgage loan servicers.

Financially strained Malibu borrowers may be fortunate to take advantage of this bill as early as some provisions of this law are also in agreements reached last year between banks and federal regulators.

CAR opposed this well-intentioned legislation because they believe it will encourage the filing of lawsuits intended for delay and further discourage lending.

While CAR seemed disappointed in the final outcome, the good news is what passed is a much-improved version of the package of bills initially sponsored by the attorney general, which would have originally halted all foreclosures, drying up both real estate owned inventory and even short sales.

I believe CAR will continue to fight for the thoughtful, balanced reform of the foreclosure process. CAR has also worked cooperatively with the Attorney General on several of the bills in her ?bill of rights.?

Members of the Malibu Association of Realtors work with the state legislators in Malibu?s district to lobby for the bills that are sponsored by CAR.

Beverly Taki is a California-licensed real estate broker who has represented clients in Malibu for 22 years. She is a Malibu resident and president/broker of Seabreeze Estates Realty. Beverly has earned a certificate in dispute resolution from Pepperdine University, specializing in mediation. Taki can be reached at beverly@beverlytaki.com or 310-456-4843. Her website is beverlytaki.com.

Source: http://malibu.patch.com/articles/real-estate-market-eyes-a-comeback

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