Beach City Digs is THE ORIGINAL "DIGS" REAL ESTATE SITE in the South Bay, with cataloged posts dating from its inception in 2008. It is DAVID WHITE'S one-stop resource for reliable news & thought leadership on real estate in Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, & surrounding areas of Southern California's South Bay - - and the broader real estate economy. We present it as an intelligent source of factual, decision-worthy information for all who can benefit from it. Please feel free to share this - - it isn't "Confidential!"

Thursday, July 24, 2014

Types of Distressed Property Sales

In the current strong market for real estate, distress sales have dropped to a minimal level in the South Bay and most areas.  Investors snap them up when prices are right. Nonetheless, now and then I'm asked what the principal types of distress sale terms mean.  Here's a refresher:

First, a link to an article from my real estate blog back in 2011 that gives an overview of the different types of distress sales: 

In a short sale, the owner offers the home for sale through a Realtor and the bank, if they approve an offer, accepts less than they are owed, forgiving the rest of the debt.

In pre-foreclosure, the bank has given the owner a Notice of Default, saying in effect “pay up or we will sell your home in a foreclosure sale.  Some owners list their homes after receiving a Notice of Default, but they are typically in denial and won’t actually sell their home, but if they do it’s typically for cash or a very fast loan.  [expansion on this topic:  Here's the thing about pre-foreclosures:  It's just a term meaning the homeowner has been served a Notice of Default (that's a 90-day waiting period notice in California).  If the homeowner, considering this fact, decides to sell their home, then it comes out on the MLS as a Notice of Default sale.  All the rest (those who don't list their homes) are just that:  owners very late on their mortgages who have NOT decided to sell.  So the fact that eager websites like to tell us how much trouble these people are in doesn't translate into those homes actually being for sale, and the lender has no standing to sell them.]

Foreclosure is when the Notice of Default has matured and the bank has scheduled a foreclosure sale (the ones you hear about on the “courthouse steps”).  At this point, you have an angry seller who is still probably in denial but might sell for cash (there’s no time for buyer to get a loan).

Foreclosed or Real Estate Owned (REO) properties have been foreclosed by the lender and taken into their ownership.  The foreclosure is over, now the bank just owns the home.

And thank God most of these are over! -David

Wednesday, June 18, 2014

Beach Cities turn out for their local Kings during Stanley Cup parade

Fun times today with our Manhattan and Hermosa neighbors the Kings!

Beach cities turn out for their local Kings during Stanley Cup parade

GO KINGS GO!!!  -David

Top Staging Don'ts from HGTV

Here are home staging tips from HGTV to help buyers appreciate your home!

Top Staging Don'ts

Keep clicking past #7 and you'll see more good staging ideas. - David

Friday, May 23, 2014

The 2 Rooms That Really Sell Homes

According to Trulia as quoted in Forbes, These Are The 2 Rooms That Really Sell Homes.  I can't disagree, but would offer an additional point:  Before taking it upon yourself to select your home repair and fix-up projects in advance of a sale, contact a knowledgeable Realtor to find out what really matters to buyers in your specific market.

It's nearly impossible for a homeowner to be objective in selecting what to change about their own home to make it appeal to today's buyer. Thus it's easy to overspend, or spend on the wrong things, or delay your sale unnecessarily while making the wrong upgrades!  -David

Thursday, May 22, 2014

A Good Listen on Personal Financial Responsibility

A good listen and really excellent commentary on personal financial responsibility and steps that are within our control. By Steven Spierer, who also happens to be my go-to real estate attorney:
Steven Spierer, 5/17/14 « Talk Radio One