Sunday, September 26, 2010

Stop Paying that Second Mortgage

If you're upside down on your home and have fallen behind on your mortgage payments, it would be smart to stop paying all the loans on your home including the second mortgage.

Usually, it's the second mortgage who has taken a higher risk and in return, they have jacked-up the interest rate above 9%.  I've seen some home-owners paying over 11%.  They are the lender who is most likely to walk away with nothing if you foreclose and the same lender who will strong-arm everyone involved to get some of that money back if you decide to short sale (Usually 10% of loan amount).

Like most people, if you've tried to modify your home loan but have failed repeatedly, your alternative is to hire a local real estate agent to short sale your home.  If you continue to pay the second loan, you are actually making it harder for your agent to present a case that you can't afford the home.

It's usually the second mortgage holder who is usually doing the most threats.  I've heard them all.  Keep in mind you have rights in Los Angeles County and nobody can throw you out of your home without first going through the foreclosure process.  

Don't wait until it's too late to have a successful short sale.   You're still okay up to 4 months of non-payment but if you wait to long, then you run the risk of not being able to have a successful short sale.

If you're thinking of short selling your home in the San Fernando Valley, call Richard Johnston 818-730-4128.

Monday, September 20, 2010

Los Angeles Notary

It took over three months, but I'm now a Los Angeles certified notary.  Years ago when I applied for my notary license, it took about one month to get my certificate and then order the stamp.  Now, expect about 3-4 months delay. 

I really didn't expect it to take this long.  There was no mention about how long it would take to get our test results, commission number, etc..  Not even the Secretary of State website made a mention to the time frame.  I had to call and ask and most times the number was busy.  I was notified my email about three weeks after I took the notary exam that I had passed.  Expecting to get the documents in the mail within a few weeks, it took another few months.

With all the budget cuts, an alternative would be to raise the price or have those who need their notary license ASAP pay an additional amount.  This way, those notaries will not have to wait as long as the others who may do notary signing a few times a year.

Tuesday, September 14, 2010

Los Angeles River - Horibble Smell

If you've driven or walked over the Los Angeles River, you probably have smelled this horrible stench.  What in the world!!!  Is this really a river?  More like an outdoor sewer dumb disguised as a river. The stench is really bad and the smell isn't just when you're close to the river.  I can smell that river 200-300 feet away. 

I mean, I have to cover my mouth when I ride my bike anywhere close to that river.  What in the world can be in that water?  People need to stop dumbing!

If you don't know about the Los Angeles River, click this link: http://en.wikipedia.org/wiki/Los_Angeles_River

The river generally borders the 101 freeway and starts in the San Fernando Valley.  I wonder which got built first?  The concrete river or the 101 freeway.  Nonetheless, living next to the river or freeway can decrease the value of the home.

Because this is a real estate blog for homes in the San Fernando Valley, I must let you know that if you are thinking of buying a home near the Los Angeles River, you must know that the river has a stench which increases during certain months of the year.  Actually, the river smells bad all year long.  One way to get an idea of how much the river smells is to talk to people who live next to the river.

Generally speaking, homes close to the Los Angeles River are sold at a discount.  When buying a home in the San Fernando Valley, it's important to discuss what situations can lower the price of the home.  You may be buying in a strong seller's market and disregard some potential future issues.  These issues can have a financial effect if you decide to later sell in a buyer's market. 

Please consult with your local real estate agent for professional real estate advice.

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