South Bay Homes and Real Estate

…Another in a real-time series of correspondence regarding all aspects of interesting real estate tidbits. If you would like to be considered for this or similar deals be sure you are on my email list. Better yet, give me a phone call at 310-809-0203:

Need to dump a South Bay home w/a Short Sale?

By Ryan Rockwood: Today another short sale listed and ’sold’ through our professional network of clients and investors. For us the work has just begun. But for the homeowner, there is literally no hassle with showings and bother whatsoever. Just a little peace of mind in order to graciously move to the next stage of their life. Contact me if you know someone who might benefit from our services.

…Another in a real-time series of correspondence regarding all aspects of interesting real estate tidbits. If you would like to be considered for this or similar deals be sure you are on my email list. Better yet, give me a phone call at 310-809-0203:

Via email:

Dear *** ;

If you are interested in going outside the S. Bay (I know it’s not your first choice) I’ve got a possibility for you – Beaumont!

I have a client who wants to dump **** **** **, Beaumont, CA. I don’t have pics but I’m sending some comps from the same street. It’s 4/3 1970 sqft / 6900 sqft, 2002 built.

It is a short sale. (Offer now…go see the home and decide whether to commit in a couple months if I can negotiate a deal with the bank).

You could get it for $150,000 – $200,000. It would probably be immediately cashflow neutral/positive. Good property to hold forever as a monthly income machine. Property Mgt is 50% of 1st month and 20% thereafter. Rent approx $2,000/mo. Figure 1/mo yrly vacancy and 5% repairs yrly. Not a bad hands-free investment for 20% down.

Have a great day, Ryan

Visit www.RockysMLS.com for interesting real estate info and every home listing in the South Bay.

How can I make this go away with the least amount of work, expense and disruption to my life?

a. Well, no surprise here, the simplest solution is to Pay-up. Often that means everything – arrears, penalties. fees. If that simply isn’t in the cards, here are the various solutions ordered from least to most dramatic: 1. Loan Modification. 2. Short Sale. 3 Bankruptcy 4.Walk away.
b. To learn more about the pros and cons of each solution, contact me today for a free consult.

How can I get a true overview of my situation – not just the solution put forth by someone who stands to benefit from selling that solution?

a. That’s a tough one, for sure. Here is the solution I’ve come up with to overcome this problem: 1. Contact me for a free 20-minute consult (in person or on the phone) – No obligation. 2. Buy an in-home 90 minute educational workshop from me. I present every single option, explain them thoroughly and leave you with a list of referrals and recommendations. The cost is just $149. This appeals to folks who know the value of expert advice but don’t want to take advantage of an expert’s time without fair compensation. There is no further obligation and I don’t sell any services.

How much time do I have before a default becomes public record? …before my house can be sold at auction?

a. As soon as you are 90-days late your default becomes public record and is available to anyone at the County Registrar’s office. Actually that’s probably how you and I got in touch! Unfortunately, it’s also how hundreds of scammers and loan sharks will also probably get your name and attempt to take advantage of you.
b. Once the NOD is filed you have 90-days before your home can be scheduled for auction. Please, move quickly as your options dramatically diminish as the deadline approaches.

What exactly is a Notice of Default and a Notice of Trustee sale?

a. Both are fancy names for very simple documents. The Notice of Default or NOD is just a public notice you are at least 90-days late on your mortgage and officially you are now in foreclosure.
b. The Notice of Trustee Sale or NTS is simply a public notification that your home has been scheduled for sale. It can be filed no sooner than 90 days after a Notice of Default or NOD.

Who knows about my situation and how do they know? Do my neighbors know? Are my relatives notified?

a. Anyone that tracks public records is alerted when an NOD is filed against your home. Unfortunately, other than myself, almost everyone that tracks these records does so because they hope to take advantage of you. That is why I am so committed to contacting you and providing a trustworthy source of info to homeowners who live near my office. As for your neighbors, relatives and friends – they probably do not know yet. However, take action soon or your neighbors will soon be contacted by scammers trying to get information about you and your situation.

Who are these people sending me letters and knocking on my door? Can I trust them?

a. 99% of the mail solicitations, doorknockers and phone callers are from ‘professional investors.’ These folks have all kinds of agendas that range from downright bizarre to flat-out illegal. They are not trying to help you. The other 1% are Realtors and Bankruptcy attorneys and so on. Unfortunately, the folks who can actually help are the rarest and the least aggressive in efforts to contact you.

Can I do this on my own? Should I hire a realtor, a loan modification firm, an attorney?

a. Sorry to be opaque, but the answer is, ‘it depends.’ You can get through this yourself but not without some very sophisticated knowledge. It’s your choice if you educate yourself or leverage the knowledge and experience of an expert. In response, I’ve developed a multi-pronged approach – with books, audio and video available for the Do-it-Yourselfers and a full service branch designed for executives who prefer to pay for the tsunami of experience and expertise that only a professional can deliver.

I have received a Notice of Default. What happens now?

a. Now you are in foreclosure. Foreclosure is a process, not an event (as it is mostly commonly misunderstood). Now your mortgage default is public record. Additionally, a 90-day countdown has begun at the end of which your home will be scheduled for auction. Unless you can send the bank a lump sum of all the money you owe …you now need a professional to stall the foreclosure because no option available to you can normally be completed before the auction date.

What will happen if I simply do nothing and ignore the problem?

a. 90-days from now you will receive a Notice of Trustee Sale…21 days after that your home will be sold at auction. Soon after, the sheriff will be dispatched to escort you off the property. The locks will be changed. Doing nothing needlessly and seriously damages your credit scores as you will get an “F” on your record (Foreclosure) that stays there for 7 years. Even if you do not care about that right now…believe me, in the future you will regret it – especially because there are better options available for you now.
How much does a loan modification cost? How long does it take? How does it work?

a. The only price of a Loan modifications is the time and energy required to get the modification. With preparation you can apply in as little as 60-minutes. But count on 30-90 days before you can expect to get a response. A loan modification is basically a mutual agreement between you and the lender to change the original terms of your mortgage.

How much does Bankruptcy cost? How long does it take? Will it stop foreclosure?

a. Costs vary greatly – it seems to me that most folks pay $3000-$4500. It definitely stops the foreclosure … but only temporarily. It is not a permanent solution in and of itself. Courts are increasingly sensitive to abuse of the BK system as a simply foreclosure stalling tactic.

How much does a short sale cost? How long does it take? What is it?

a. The good news is that a short sale is free to the homeowner. It’s kind of ridiculous but currently lenders require full payment of arrears for a loan modification but they will cancel the outstanding debt and the arrears if you sell your home. Talk about a broken system, huh? If you have no equity (or negative equity) in your home selling your home short is by far the best solution. The bank even pays us to actually sell the home for you. You don’t bring a dime to the closing table. It is incredible. Short sales do take time. Count on at least 90-days. The good news is most people stop paying their mortgage when they decide to sell short. So most people get to live 3-4 months w/no mortgage payments.

What is involved in simply ‘walking away’ from the property?

a. Letting the house go to foreclosure – letting the bank take the property – can be the best course of action, depending on the situation. But should always be a last resort. The biggest downside is that you incur a foreclosure on your credit report – probably the worst mark of all…I call it the credit report “F” word. Also, in some cases lien-holders retain the right to pursue deficiency judgments against you. In other words, even after the house is gone it might not be over.

14. Can I somehow stall the foreclosure process?
a. Yes. There are several legal administrative ways to delay the foreclosure process. In this housing meltdown the banks are so swamped with “loss mitigation” activities that they are willing to delay the process for many good reasons. This is an area where an expert’s knowledge can literally save you from losing your home.
15. What is the least public (least embarrassing) solution?

a. Pay-up catch-up. Immediately. Next, a loan modification. Next, a short sale. Next, foreclosure auction and or bankruptcy.
16. Can I refinance?
a. I can almost say with near certainty the answer is, ‘no.’ These days no lenders will refinance more to more than 80% of your homes current market value…and trust me, your home’s current market value will probably shock and anger you. Also, in the past year have you been late in your mortgage? If Yes than forget refinancing. It’s not an option.

17. Does the Notice of Default hurt my credit score? What are the credit score implications of the various solutions?

a. The NOD does not, in itself hurt your score. In fact, it is not reported to the credit bureaus. Your credit is marred when you miss payments or pay late.
b. A loan modification usually requires at least a 60-day late and takes 1-3 months…so count on at least a 100 point credit hit.
c. A short sale can actually be completed without being late on one’s mortgage…theoretically it’s possible to complete a short sale without hurting your credit. But that depends on how the bank reports your cancelled debt.
d. A bankruptcy is a credit score nuclear bomb – depending on real estate involved, assets and liabilities.

Will the bank reduce the principal on my home?

a. No. Sorry but please don’t hate the messenger. Commercials, advertisements and solicitations that promise to negotiate a principal reduction are misleading at best and bold-faced lies at worst.

I am embarrassed. Am I the only one around here going through this?

a. Over 1 Million Notices of Default have been mailed in the last 90-days…so, no, you are not the only one. And yes, that includes thousands of people right here in Palos Verdes and the South Bay.
b. The housing meltdown has set us back to pre-2002 prices – and that is being conservative.
c. I recommend you take those strong emotions…embarrassment…and use them to motivate you to take action to get through this tough time and not fall victim to it. Taking action will not only make you feel more in control, it will also open-up workout solutions for you that passive, complacent homeowners will not have.

Should I worry about the bank garnishing my wages?

a. Yes. You should worry about that…it is humiliating. However, it’s probably a long way down the road from where you are now. By taking action now you can reach a workout solution with your lender WAY before it gets to that. Garnishment of your accounts / wages is legal only after the lender has actually gone to court to get a judgment against you and you have appeared to clarify your income and assets to the court AND has given you formal notice of their intent to apply the garnishment order.

Can the bank take my other assets? Boat, Car, 2nd home, 401K, etc?

a. That depends largely on where you live! Here in Southern California (and 33 other states) we live in what’s called a non-judicial foreclosure state. Among other things, this means the lender on your home loan does not have recourse to assets other than the home itself. Now, there is an important caveat to that. Home Equity loans or HELOCS are considered lines of credit – basically a credit card. They do have the ability to seek recourse – even after the house is long gone.

I have heard that banks do not want to own my house? Why won’t the bank agree to just give me 6-months w/no payments or let me pay just a couple hundred or a couple thousand dollars per month?

a. In effect, that is what they are doing with loan a modification.
b. Much has been made of banks not wanting to own property. While this is true it’s not the whole story. While banks may not prefer to own property, believe me – they don’t mind it a whole lot either. For them it’s just another day at the office. Banks have long had entire departments dedicated to disposing of REOs – basically real estate the bank owns. While imperfect, REO departments are well oiled machines that dispose of properties predictably.

What are the tax implications of the various solutions?

a. For a loan mod and bankruptcy there are no significant tax implications.
b. In the past, short sales have resulted in large amounts of taxable ‘forgiven’ debt. However, new laws and several important exclusions now have reversed that for most of our clients. It is very much possible to sell your home short and incur no negative tax consequences. But this isn’t legal advice and you MUST consult a licensed CPA.

Lomita Real Estate: Quiet and Charming

South Bay Real Estate had a meteoric rise and (recently) a spectacular crash but the City of Lomita remains surprisingly consistent in its home. A big reason for this is the community is deeply rooted to the area. The city some of the longest term residents in the area. Many Lomita residents live in the very homes where they grew up. Second and third generation townsfolk are not uncommon. 

It always surprises me how few Lomita homes are offerred for sale yearly. But maybe it shouldn’t – it’s a lovely town after all and few folks are eager to leave. 

Lomita is a city in Los Angeles County, California, United States. The population was 20,046 at the 2000 census. Lomita is Spanish for “little knoll”.

This page is undergoing major construction. But please bookmark this site right now as your main source of information on Lomita homes for sale. This page will soon offer the most comprehensive information available on the homes for sale in Lomita and Lomita real estate news. 

Interested in learning more about current events in the City of Lomita? Visit the local newspaper, Lomita Harbor Connection. Of course Wikipedia’s Lomita page is a great place for stats, maps and even info on famous Lomita residents!

Local newspaper columnist John Bogert’s article in today’s Daily Breeze touched me and my family. I learned about a group of kind folks based right here in the South Bay dedicated to helping children: 

“I am talking about the all-volunteer, no salaries, run-on-donations-and-kind-hearts Redondo Beach-based charity started more than two decades ago by the late, great Pam Edwards. Pam, thousands will attest, was a saint who – unable to have children of her own – dedicated her life to helping others with her homegrown, all-South Bay charity.” 

Cheer for Children sounds like an amazing organization. I include their contact information here and encourage everyone who is financially able give significantly to the poor this holiday season. 

These are strange economic times and everyday the forecast seems to get worse. Long gone are the days of cheap, easy financing and 30% yearly property inflation! My own industry has suffered terribly and I am under the impression that 30-50% of my colleagues are (for all intents and purposes) out of business. Add to that the thousands of South Bay residents who made their living in construction, remodelling, flooring, plumbing, painting, yard work and insurance.

I feel blessed that my father & I continue to make ends meet in our business. But speaking for myself, I have been forced to make changes. Last year my wife and I sold our home, a condo in Rancho Palos Verdes, because we could no longer make the payments – our financial safety net being long depleted. We found ourselves in an increasingly common situation, owing more on our home that it was worth. We had to ’short sale’ our home (pre-foreclosure) with the bank taking a $95,000 loss. Obviously, it was a very big deal for our family. 

The silver lining I found: 

1. We now rent a home in Torrance with a real yard for our 2-year old son! 
2. Our monthly payment is 30% less
3. I’m out of the housing market for now
4. I became a Short Sale / Foreclosure Specialist and have helped many many South Bay families move past complete financial devastation and sell their over-borrowed homes. 

Obviously we are heading into a challenging period as a region, a nation and possibly worldwide. My analysis of home sale prices, home inventory, unemployment trends and foreclosure notices indicate that the real estate market will continue to decline dramatically (possibly catastrophically) before it stabilizes. 

My strategy is to make changes in my own life rapidly as the situation changes. After all, no government bailout is on the way for ordinary folks. We have to fend for ourselves. But I believe there are new opportunities in every setback and blessings abound if we are brave enough to see and acknowledge them. 

But enough about me! 

What are your thoughts and experiences? How are you dealing with changes? Where do you think South Bay housevalues will wind up? Please use the COMMENT feature below to leave your thoughts and experiences.

And once again, please remember that many folks would love to have your financial problems (or mine!). And many families will go without what most of us would consider basic food stuffs this holiday. Please give to charity whatever you can. Here is the contact info: 

For more information, go to www.cheerforchildren.net. Send e-mail to cheerforchildren@mac.com. To speak to a human, call 310-540-2494. Or, if you like, send a tax-deductible donation to PMB 280, P.O. Box 7000, Redondo Beach, CA 90277.

Happy Thanksgiving!

Ryan “Rocky” Rockwood

Torrance Real Estate: Weather the Weather Here!

Description:  Most people don’t remember to think about the weather when they are purchasing Torrance Real Estate.  Here are a few things to keep in mind.

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When you buy your first piece of Torrance real estate you probably aren’t taking the weather into consideration.  Most people don’t.  Torrance is known for having mild weather conditions most of the time.  That does not mean, however, that you shouldn’t always keep potential disasters in mind.  Here are a few weather-centric questions to ask about the piece of Torrance real estate you are thinking about purchasing:

1.  Has the outside of the home been waterproofed?

2.  How well does the roof stand up against rain storms?  

3.  How recently has the roof been replaced?

4.  In the event of an earthquake, how stable is the ground surrounding the house’s foundation?

5.  Does this piece of Torrance real estate meet current earthquake codes?

6.  Is this piece of Torrance real estate well insulated against extreme heat and cold weather conditions?

7.  How much does it cost to insure this piece of Torrance real estate?

These are just seven questions to ask the current owner of the piece of Torrance real estate that you are thinking about buying.  To make sure that your future home can withstand most inclement weather conditions, make sure to have the home appraised.  An appraiser will tell you whether or not the house is up to code and what, if any, changes need to be made to make it weather-ready.

The Torrance real estate experts at Rocky Rockwood are South Bay residents and have been working with the Torrance real estate market for years.  For your weather related and home buying questions, call the Torrance real estate experts at Rocky Rockwood! Initial consultations are always free and new clients are given a free Starbucks coffee card!  Call 310-809-0203 or e-mail ryanrockwood@kw.com to set up your appointment!

Tenants granted foreclosure help.

The Los Angeles City Council approved a new law Wednesday that puts a one-year moratorium on banks evicting tenants when they foreclose apartment buildings and houses used as rental property.

The law, proposed by City Council President Eric Garcetti, came after Countrywide pressured tenants to leave their apartment units in violation of the city’s tenant protection rule.

After the banks complained that they did not understand that tenants protections applied to them, Garcetti’s office said, the councilman proposed the law to protect tenants.

The law could apply to thousands of families; the Inner City Law Center estimated that more than 3,800 rental units are in buildings that were foreclosed upon this year. 

Apartment owners had  the expressed concerns that the law represented an attempt to expand the city’s controversial rent-control laws, but city leaders said they were only trying to protect tenants during the foreclosure crisis.

Article found in The Los Angeles Times, December 18, 2008.  Writen by Jessica Garrison

If you have any questions regarding foreclosure, contact Rocky Rockwood, 310-809-0203 or at ryanrockwood@kw.com.  Rocky Rockwood can provide answers and solutions to your foreclosure problem. 

Buying a Rancho Palos Verdes condo can seem like the best deal-you’ll own a piece of Rancho Palos Verdes real estate and have a built in support system when you need to have maintenance and repairs performed. But what many condo buyers do not consider or maybe just don’t know is, underneath all the perks there is a little thing known as The Homeowners Association.

The Homeowners Association can be a blessing and a curse when it comes to owning a condo.  Make sure you understand how your condo’s homeowners association operates before you agree to buy your condo. Here are some of the questions you need to ask:

1.  What are the Homeowner’s Association bylaws? These bylaws can govern anything and everything from what plumber to call or what colors your curtains can be. The bylaws are legally enforceable so you need to make sure you agree with them before you agree to purchase your Rancho Palos Verdes condo.

2.  What was the breakdown of the association’s last financial report?  You are allowed to view this report before you buy your condo.  Make sure you agree with how the association spends its money! 

3.  Ask how meetings are run.  There are minutes taken at every meeting of a homeowners association.  Ask to read the minutes from the last few meetings and find out if attendance at those meetings is mandatory.

4.  Make sure you can afford the monthly HOA dues.  The association has the right to foreclose if your dues become delinquent.

The real estate experts at Rocky Rockwood have plenty of experience selling Rancho Palos Verdes condos. For a free Rancho Palos Verdes or any South Bay Condo consultation, call 310-809-0203 or e-mail ryanrockwood@kw.com!

Here are the top ten reasons NOT to wait for the “4.5%” loan program.                                                     

                       1) This program may never happen.

                       2) What will be the terms if it does?

                       3) No idea how long it may be before we ever find out.

                       4) High demand on product if it becomes available.

                       5) Rush to use this product will drive home prices UP!

                       6) Higher price pressure reduces or eliminates Seller concessions.

                       7) You may lose first time buyer tax credit.

                       8) FHA down payment increases to 3.5% in 2009.

                       9) Loss of all ownership tax advantages between now and when you buy.

                       10) If the program does actually happen, you can always refinance!

Has waiting on the government to fix anything ever been a good idea?

Home prices are at great right now. Home buyers have the ability to ask for seller concessions and can really negotiate terms. A rush of home buyers will eliminate that and help push up prices!

Do the math! If a home rises in price just 10%, the resulting payments at 4.5% are higher than if you just closed today at 5%. Not to mention the higher closing costs on a higher sales price, along with a higher down payment requirement!

Don’t give up your ability to get the best deal possible! Buy that Rancho Palos Verdes home or any South Bay home today! If a new program does appear, you always have the ability to refinance. But what if it doesn’t? Can you risk waiting for the government?

Go out and negotiate the best possible deal on a house TODAY!

Great terms are available TODAY!

Tax benefits and low down payments are available TODAY!

Waiting for the government to fix anything has never been a great idea. But if the government should come up with a great program, you can always look to see if it makes sense for you then.

Why wait?  Call Rocky Rockwood today! Or if you have any question regarding this program, call 310-809-0203 or contact Rocky at ryanrockwood@kw.com.

Instead of purchasing a new home in a development, consider purchasing Rancho Palos Verdes real estate foreclosures. Here are a few reasons why foreclosures are good investments.

Many believe the only houses worth buying are houses that are being sold at market value.  While it is certainly true that the Rancho Palos Verdes real estate market does have quiet a few gems, there are just as many great investment opportunities with its real estate foreclosure market.  

Rancho Palos Verdes real estate foreclosures offer many real estate investors a fantastic opportunity to make quite a profit.  Foreclosures are houses that a bank or mortgage lender has seized from the current owners due to a defaulted on their loan.  Some foreclosures are being sold at a deep discount by the current owners in an attempt to avoid having a foreclosure put upon their credit history.  Often, these pieces of real estate can be purchased for however much the owners still currently owe on their mortgage. 

Often, Rancho Palos Verdes real estate foreclosures end up being put up for sale at an auction, but there will always be  properties that do not sell at auction and that bank or mortgage company is anxious to get rid of. This is where the true Rancho Palos Verdes real estate bargains are found. Houses held by the bank sell for a small fraction of their market value because the bank wants to get the house off of its books!  The owner is free to keep the house for himself or sell at a profit!

There are many who will say that real estate agents aren’t your best option for foreclosure information. This is simply untrue!  Who better to tell prospective buyers about potential bargains than someone with intimate knowledge of the Rancho Palos Verdes real estate market?

The real estate experts at Rocky Rockwood are familiar with all aspects of the Rancho Palos Verdes Real Estate market and have plenty of experience helping real estate investors find the bargains they are hunting for. For a 100% free initial foreclosure consultation, contact Rocky Rockwood! These agents can be reached by calling 310-809-0203 or e-mailing ryanrockwood@kw.com. Call or e-mail to set up your appointment today!