It Will be a Happy Year, Just Not a New Year

I'm looking at today's report of November home sales, a 12-year low, and can't help but think that 2008, compared to 2007, will be a happy year. Notice I didn't say Happy NEW Year. Because I don't see anything good happening while 2008 would be considered new. In fact, it may be Happy Old Year if anything. Perhaps we start seeing inventory move better in the third quarter and by this time next year, it will be a Happy New Year 2009? Hang in there folks. Optimism lives!!!

A Tenant's Due Diligence in Today's Market

The latest twist in the housing market downturn, at least in my mind, revolves around landlord/tenant relations. It's common practice for the landlord to do a credit check on a prospective tenant. With many tenants being evicted as a matter of process, following a bank's foreclosure, a common occurence nowadays, it's a matter of time before some tenants begin asking for a landlord's credit report as a condition of putting his or her living situation in the landlord's hands, so to speak. I was watching Fox 40 news last night, and a story about tenants' and their dilemna was presented. A quote from a tenant really caught my attention; she said something to the effect that, is this what it has come to, us tenants have to get the landlord's credit report?

I don't really believe it will come to us, but the irony is not lost. Even tenants can't be too careful anymore.

The Fluffy Mortgage Bailout

Fluff. That's all it really is. I'm not talking, of course, about the federal bailout agreement. You know, the one that applies to the drop-in-the-bucket of distressed homeowners out there. I didn't expect much from it, so I guess I'm not surprised that it turned out to be politics as usual. The best spin I have for this development is that it will have some kind of psychological effect on the market. I think the smart money will be on a continued slump until some real adjustment is allowed to take place, most likely without any real help from the feds.

Housing Discrimination and Sex Offenders: A Conflict Remains Unsolved

In February of this year, California Assemblyman Greg Aghazarian (R) introduced a bill which addressed the conflict in the law as it relates to sex offenders and housing discrimination. AB 1197, as written, would recite the legislature's intent that the Unruh Act, and housing discrimination protection, would be reflective of the laws protecting children from sex offenders (such as Megan's Law).

The bill died in committee but I hope that Assemblyman Aghazarian brings it back again. If he does, the safety of our children dictates that his fellow legislators support the law.

The protection of children is most important. But the law as it stands puts landlords in a bind. If the Dept. of Justice (D.O.J.)identifies a sex offender, shouldn't a property owner be permitted to recognize this in deciding who rents his or her property and lives next to other tenants? The ACLU and some special interest groups have opposed this bill, of course. Even the disability advocates oppose the bill because some sex offenders are disabled. But where do the rights of property owners come in? And, where does the safety of California's children come in?

I'll keep you posted if I hear more. Until then, you can call Assemblyman Aghazarian or your legislator and get this issue resolved before the problem is magnified....

One Thing Doesn't Change: Construction Defect Lawsuits

Stop the presses! Buyers are suing homebuilders! The latest in a line of reasons why builders earn every dime they make is evident in an MSN article about disgruntled homebuyers.

The article makes it sound as if the rush to courtroomsm has something to do with the credit/mortgage crisis. It doesn't. Nothing has changed in one respect: unhappy homebuyers are still using the courts to get their builder to pay up. Sometimes the builder deserves this. Often, they don't, nor do the agents, title companies, and everyone else drawn into the mess. Nevertheless, there will always be lawsuits directed at construction defects, credit crisis or not.

Happy Thanksgiving!

Happy Thanksgiving to everyone. This is one of the few days of the year where you can sit back and reflect on the market and where it's going to go. Watch some football, eat some turkey and pumpkin pie, and let your thoughts clear up a little. There are some great transactions lying ahead; we need to make sure we can spot them clearly.

Home Equity Law to Watch Out For

Wrote about the Mortgage Foreclosure Consultants Act earlier. A similar law is also in effect in California which regulates the transfer of real estate by "equity purchasers". This is distinguished by law from loan transactions. Main issue is whether the seller was unfairly coerced into transferring his/her property to a lender. Key point is that a five-day cancellation period is in effect, and not much can happen during that period. There's also an attorneys fees provision if a suit is brought, as well as a provision for possible criminal penalties. Every person who helps distressed homeowners should know this act. It doesn't say you can't help someone out, or do it for a profit. You just have to do it in a manner which the law allows.