Los Feliz Mid-Century Triplex

Stop by my open house on Sunday, April 18th, from 2 to 5 pm.

Los Feliz Triplex
$1,249,000
3 bed, 2 bath
2 bed, 2 bath
2 bed, 2 bath
3765 Arbolada Los Angles, CA 90027



Beautiful Mid-Century triplex in sought-after Los Feliz. Potential rental income of $7700/month. The spacious 3+2 owner's unit has amazing indoor/outdoor flow from the living/dining rooms. Updated eat-in kitchen. Custom bathrooms, include a new master w/ soaring ceiling & skylight which is bathed in natural light. The owner's unit will be delivered vacant. Lower 2+2 unit is tenant occupied & currently rented for $2200/month. Upper 2+2 unit delivered vacant. Other features include tankless water heater, hardwood flooring throughout, & fantastic private outdoor space.

What Happens During a Short Sale?

As an agent with experience in short sale transactions, I've decided to prepare a detailed explanation, although not thorough, of the process. Please keep in mind that each transaction is different.

Short Sale – The sale of a property in which the lender consents to receiving a loan payoff of less than what is still owed by the Seller on the note secured by the property.

In the transaction, sufficient funds are generated to cover all of the Seller’s closing costs (commission, title charges, escrow fees, etc.) and the payoff of any existing loans and/or liens of record without the Seller having to deposit funds to make up the shortage.

Lenders typically agree to short sales because they can avoid the following:

• spending time and money to foreclose, evict borrowers, and resell properties

• adding a bad loan and REO to their portfolio

• paying property taxes, insurance, maintenance, foreclosure fees, holding costs, and repairs for REO properties

• risking theft and vandalism to the property, either by the borrower before they vacate the premises or by others when the REO property is vacant

Not all Sellers qualify for the short payoff assistance. Lenders will require

the Seller to provide them with proof of hardship.

Here is the way this type of transaction usually goes:

The listing agent takes the listing and completes an estimated net sheet for the Seller to determine how short he/she will be at close of escrow. The listing agent then contacts the Loss Mitigation Department which handles the short pay for the lender(s) who hold(s) the existing lien(s) on the property and requests a copy of their criteria to submit in order for the lender(s) to consider granting the short sale.

Lender(s) usually ask for:

• a current appraisal on the property
• a hardship letter from the Seller explaining exactly why he needs to do this
• current credit report on the Seller, financial statement, employment verification
• copy of payoff statements for any subordinate liens on the property
• current statement of account from the property management company, if applicable
• Preliminary Report

The listing agent submits these items to the lender and then waits for their approval or disapproval while marketing the property with the contingency that this approval would be required prior to close of escrow.

When the Buyer makes an offer that is accepted by the Seller, then escrow is opened. The selling agent should be sure that the C.A.R. Form SSA is used as an addendum to the purchase agreement. If not, then the escrow instructions must reflect the contingency for the short sale.

Escrow will then order a Demand Statement for the lender(s) and include estimated seller closing statement (showing everything except for the payoff of their loan) and a certified copy of the escrow instructions and a copy of the C.A.R. contract and preliminary title report. The lender will want to review all terms of the transaction before even considering whether or not to participate in the short payoff.

Upon receipt of the written approval from the lender directly to escrow stating that they will accept the short payoff and still issue a full reconveyance for their trust deed, then the process really begins. Escrow will need to thoroughly read the Lender’s Instructions and proceed to comply with them.

The lender may request the following from escrow:

• delete the credit from the Seller to Buyer for closing costs
• disallow the Seller charge for the home warranty policy
• require the commission to be reduced from 6% to whatever the lender feels is reasonable
• require that termite work be paid by someone other than the seller

The lender wants to reduce the amount of their loss as much as possible.

Escrow will forward a copy of the lender’s letter to both agents and ask them to re-negotiate their transaction and get back to escrow so that an amendment can be prepared to be signed by all parties, and a new estimated closing statement prepared reflecting any changes required by the lender. It is not unusual for agents and/or buyers in these types of transactions to pay some of the costs that the Seller will not be allowed to pay. Buyers need to know that repairs of the property, requested from the Seller, probably will not be approved.

Final approval must be given by the lender at this point, for escrow to proceed to close. The timeframe to close after the final approval will be determined by the lender, so agents, buyers and sellers must be made aware of this fact. The new lender will also need to be aware of this fact and must be able to perform. If escrow does not close in the timeframe permitted, the approval process will need to be started all over again by sending the lender a new estimated closing statement and a request for an extension. Written instructions must then, again, be received by escrow in order to proceed with the close.

In a transaction where there is only one lender to be paid, that lender will usually take the entire amount of the proceeds remaining after payment of the selling costs they have previously approved. Agents and escrow must be especially careful here to be sure estimates are accurate.

In the case when there is more than one lender, the listing agent will need to negotiate with each of them. There are cases when the junior lien holders will have to accept a flat amount, or in some rare cases, no money at all.

No matter how many demand statements exist, the Seller must sign approval of each and every one. The Seller will also need to approve the written lender instructions from the lenders agreeing to the short payoff.

Short Sale Approval (or “Demand Statement”) – Generally, a 1 to 2-page letter given by the 1^st and 2^nd Trust Deeds approving the sale of the property, which will result in a short payoff of the mortgage. It lists the criteria that need to be met.

The letter:

• approves the purchase price and indentifies both the Buyer and Seller by name

• outlines the required minimum payoff amount

• specifies the exact date on which Close of Escrow should occur

• includes wiring instructions

Short Sale Addendum (C.A.R. Form SSA) - This form makes any short sale transaction subject to lender approval by a particular date. Thus, this form will create an express contingency, for the benefit of both parties to the transaction, whereby both sides agree that the entire agreement is contingent on the Seller’s receipt, by a particular date, of written consent from all existing secured lenders and lien holders to reduce their loan balances by an amount sufficient to permit the proceeds from the sale to pay the existing loan balances as well as other costs, (including commissions) without requiring the Seller to place any funds in escrow. On this form, the parties would also agree whether the time periods in the purchase agreement for inspections, contingencies etc. should begin as specified in the purchase agreement or on the day after Seller delivers to Buyer the written notices of the lenders’ consent to the short sale.

BPO (Broker’s Price Opinion) – A detailed report prepared by a real estate broker, indicating the fair market value of a property based on nearby comparables and the condition of the subject property. Typically a BPO is ordered by the 1^st Trust Deed once a short sale approval has been given.

Trustee’s Sale, or Foreclosure – A public auction wherein the lender of record causes the real property to be sold for nonperformance of a mortgage (foreclosure sale). The sale usually takes place outside the County Recorder’s Office or outside the Trustee’s office. The opening bid for this auction is generally the outstanding loan amount (unpaid principal balance), all accrued interest, late charges, advances (if any) and the foreclosure fees. Any one who attends with cash or certified funds sufficient to cover the bid amount may participate. The property is sold AS-IS, with no warranties except clear title.

REO (Real Estate Owned) – The term given to properties which revert back to the lender at the Trustee’s Sale. These properties become non-performing assets on the books of the lending institutions and are usually sold through either real estate brokers and/or asset management companies.

Los Feliz Open House on Sunday, 1/18

Location, privacy & peace inside enchanting and beautifully restored 3 bedroom, 3 bathroom Colonial Los Feliz home.

Come preview it during an open house this Sunday, January 18th, from 1 to 4 p.m.

The home features: 3 ensuite bedrooms, formal dining room, gourmet kitchen with Viking appliances, and a koi pond.

For additional information, or to schedule a private showing, please contact Jovelle Narcise of Prudential California Realty at (323) 671-1227.

Offered at $1,325,000.
3617 Shannon Road, Los Angeles, 90027

Why Choose a REALTOR® With a GRI Designation?

Buying or selling real estate in Los Angeles isn’t easy in today’s challenging and ever-changing market. New technology, laws, procedures, and the sophistication of buyers and sellers require real estate practitioners to perform at a higher level of professionalism. And, in areas like the Hollywood Hills, Silver Lake, Los Feliz, and Echo Park, real estate has arguably become a homeowner’s most prized asset in the last 5 years.

It has become essential for a buyer or seller to work with a REALTOR® who has a keen understanding of the real estate business. The GRI program has helped the best and the brightest in the industry achieve that level of understanding.

After completing an intensive 14 course series – totaling 95 hours of live lecture time – I’m pleased to join the ranks of REALTORS® who have earned the GRI (Graduate, REALTOR® Institute) designation from the California Association of REALTORS®.

When you’re ready to buy or sell a home, have an eye for the letters "GRI" after a real estate agent's name. Don't you deserve the best?

GRIs are:

• Nationally recognized as top performers in the real estate industry
• Professionally trained in marketing and negotiating skills
• Knowledgeable in new disclosures and legal aspects of real estate
• Dedicated to bringing you quality service

Who Else Wants to Live in Silver Lake?

I visited the Kor Group’s Sunset Silver Lake live/work project at 4111 Sunset Blvd. (between Manzanita and Myra) last week to witness the new architectural addition at Sunset Junction. Although for years I’ve admired the views looking northeast from Sunset Blvd. – lush treetop vistas of the mountains amidst Silver Lake homes – it was great to see what Kor created on the once-vacant lot. 4 free-standing buildings rise above a well-groomed, landscaped courtyard. Of 43 live/work spaces, only 18 remain, 2 of which have attached 2-car garages. I especially liked the roof terraces in select residences. Prices start from the $700,000s for your new, hip home in Silver Lake.

¡Viva L.A. LIVE!

Have you been to Downtown L.A. lately? Cranes abound in the South Park district and, amidst the buzz of the Nokia Theatre’s grand opening last week, I wanted to witness the organic growth of the area firsthand.

I was lucky enough to tour the sales office of the much celebrated Ritz-Carlton Residences at L.A. LIVE, anchored by AEG. Located at the Petroleum Building, the sales office was complete with architectural scale models, interactive videos, and sleek design – all evoking the feeling of what’s to come. Cheers to 2010 when the posh Ritz-Carlton comes online with 224 unmatched residences, half of which have already been reserved.

Taste of Los Feliz 2007 – Take A Bite Out of Hunger & Homelessness

Participate in Hope-Net’s 2^nd Annual Taste of Los Feliz event today, which features appetizing food and drink from local restaurants, including the Dresden, Vermont, Palermo, Alcove, Café Figaro, Home, Chi Dynasty, and House of Pies, to name a few.

Since 1988, Hope-Net has provided hot meals, emergency groceries, food pantries, and affordable housing to the economically poor. The advocacy group continues to reach low-income neighborhoods within the Wilshire Center, Rampart District, Koreatown, and beyond.

WHO: Hope-Net

WHAT: Charity Event | Food Festival | Raffle

WHEN: 5 – 8 p.m.

WHERE: Vermont Avenue in Los Feliz

WHY: Support a Local Charity | Fight Hunger & Homelessness

Admission: Adults, $35; Children under 12, $15; at the door, $40.

Stop by and show your support. I'll be volunteering during the event.