Seller Refusing To Close Escrow

I spotted a brief mention of this in our California Association of Realtors feed on Instagram. Enough of it to make me realize that it should be shared.

What if the Seller does refuse to Close Escrow?

I've yet to have it happen to any of my buyers, 

but as a Realtor, it's out of my hands when it does.

As your agent, I can send a Demand to Close Escrow to the Seller on your behalf. It must be sent out before a buyer can cancel based on the seller refusing to close escrow. There are time periods that we must adhere to of course.

The buyer may wish to send a a letter which outlines the legal liability for the Sellers breach of contract. Yes, the purchase agreement is truly a contract. So often ignored as such though. 

However, the buyer may hire a lawyer,  file a suit, record a lis pendens, ask for specific performance or damages, and claim attorney fees and costs.

Reminder, your agent is out at this point. We are not attorneys, and cannot assist with any legal issues between Buyer & Seller.

If the Demand to Close Escrow is not adhered to by the Seller, again, we are out of it and the Buyer has to decide if they want to pursue legal guidance.

Summer is Here, Don't Over-Enjoy Your Yard to The Dismay of your Neighbors!

Great reminder article in Houzz this week. Talking about the different scenarios that would allow you to really enjoy your backyard. But, things to think about to keep the peace between neighbors.

AKA ... Common Courtesy

"Many of us move outside during the summer. We host parties in the yard, grill and eat meals on the patio, relax by the pool and work in the garden. However, most of us share our outdoor spaces with uninvited and sometimes reluctant guests: our neighbors. And our outdoor pleasures can be their pain points. Or maybe we’re the ones who suffer from a neighbor’s unwelcome noise or cooking smells.

Because it’s more pleasant to get along with neighbors than not, here are 10 guidelines for considerate outdoor practices and design — no matter which side of the fence you’re on."

1. Keep Lighting on the Down Low - I sure don't want to have someones backyard lights blazing into my dimly lit home.

2. Thank You for Not Smoking - I have a friend that her neighbor constantly smokes in his yard. Another client passed on purchasing a home that people were constantly smoking in the neighbors backyard.

3. Watch the Volume on Outdoor TVs and Music Speakers - I don't think we could put a TV in our yard. I'm always asking hubby to turn it down...INSIDE the house! 

4. Keep a Lid on Pool Noise - Know before you buy that pools can be noisy when in use. And, speak to your neighbor if they are playing Marco Polo in the late hours.

5. Be Mindful of Which Way the Wind Is Blowing - This is actually about wind chimes! Check in with your neighbors before you place your chimes. 

6. Show You’re a Team Player - Kids, they are talking about kids playing in the backyard. Be mindful of where you put the childrens' play space.

7. Don’t Forget Your ‘Petiquette’ - Barking and Pooping. Please courteous to your neighbors. This is one of the biggies.

8. Be Considerate About Composting - I don't want to smell your compost pile. Nuff said.

9. Place Structures Thoughtfully and Be a Good Host - With all the ADU's being added, PLEASE be one of those neighbors that considers your next door pals when considering placement of one. And, if you're going to have guests coming and going....tell them as well.

10. Extend an Invitation — or an Olive Branch - Of course the best way to create peace and harmony with your neighbors is by getting to know them so you can maintain good communication. Let them know if you’re having a big event. Bring them some flowers or veggies from your garden to soften the blow. If you’re having a neighborhood get-together, be sure to invite them. And if you’re on the receiving end of a neighbor’s complaint, ask what you can do to improve the situation, and make a good-faith effort to follow through on the answer.

I sure hope this helps you, and your neighbors, to enjoy your Summer outdoors!

SCV Sales Info & The ONE Percent Down Home Loan

The quick info is about Santa Clarita, and our local surrounding communities, home sales info.

We currently have 228 homes available for sale. 

Condos, Townhouses, & Detached homes.

In our Coming Soon category we have 19. In escrow we have 313. Total number of properties that closed escrow in the last 30 days? 267. Coming soon is up from last month. Active is down. In escrow is down. And, sold in the last 30 days....is up. Keep an eye on my blog so we can see what happens next month!

Now, the 1% home loan. Yikes.

You Can Now Buy a Home With Just 1% Down,

but Should You Get One of These Bargain Mortgages?

I'm just sharing with you the worries/reasons that maybe putting so little down is not a good idea. This is from an article I just read on Realtor.com:

The risks of the 1% down mortgages

There are risks to taking out one of these loans.

Most first-time buyers don’t realize just how expensive homeownership can be. There are the big-ticket items that eventually need replacing, such as a roof or boiler or an appliance such as a stove or washing machine. Then there is the maintenance, such as having the gutters cleaned, the property landscaped, the HVAC system serviced. And there are also those unexpected expenses when something goes wrong without warning. Homes are called “money pits” for a reason.

Homeowners who don’t have much equity in their properties won’t have anything to tap into to pay these expenses. And if they opted for one of these loans because they didn’t have much in savings, they might not be able to cover these costs plus their mortgage.

“It’s potentially enabling homebuyers who should not be buying a house,” says mortgage lender Shayowitz. “The people who should be given mortgages with 1% down should be extremely highly qualified individuals with the income and the reserves to make their mortgage payments.”

Another concern is that, as the housing markets corrects and prices drop in many parts of the country, homebuyers who use small down payments could find themselves underwater on their loans.

But that’s not necessarily a problem in this era of accelerated housing cycles.

“They still have a place to live, [and] prices generally recover over time,” says Keith Gumbinger, a vice president at HSH.com, a mortgage information website.

But if they have to sell quickly, they could lose money if they owe more than the home is worth. They would have to absorb those losses.

Homeowners who don’t have much of their own money invested in their properties are also more likely to walk away from them if there are problems or their property value goes down. Foreclosure or short sales would severely damage someone’s credit.

“I don’t even think those are real concerns,” says Elezaj. He points out that borrowers still must have strong financial credentials to qualify for the loans. “These are good quality loans and good quality borrowers.”

The lender absorbs more of the risk than the borrower, says Gumbinger. If the borrower can’t pay the mortgage, then the lender doesn’t get paid until the home is ultimately sold.

Could 1% down mortgages trigger another housing crash?

While these loans might conjure up comparisons to the housing crash of the late 2000s, there are a few key differences that should prevent another crisis. These borrowers’ financials are carefully vetted versus the run-up to the recession when people were lying about how much they earned and still getting loans.

Their credit scores need to be high enough and their debt low enough, and they have to prove their income is sufficient to make the mortgage payments each month.

Plus, these loans don’t balloon in size over time or adjust as mortgage rates change. Both are 30-year, fixed-rate mortgages offering steady, monthly payments.

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Feel free to post your thoughts!

In Case You Haven't Heard About State Farm.....

No More New Policies In California!

I was actually just talking with a client this week about insurance problems in Santa Clarita, and then see this news flash that State Farm won't write any new homeowner policies in California due to fire issues. They say they will continue to insure people with existing policies though.

“State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market”. 

In Santa Clarita we've had issues with fires regularly. Always a big thing. I tell my buyers, talk to your insurance agent right away to make sure you can get a policy. Castaic & Stevenson Ranch seem to have the hardest time. 

Since the start of 2023, CAL FIRE and the US Forest Service have recorded 1,205 wildfires in the state, which have burned a total of 1,233 acres. On a year-to-date basis, over the past five years, the two organizations have recorded an average of 2,015 wildfires a year in California. It's no wonder, right?  

At any rate, I know from experience, any home buyer can get insurance on any property. Just matters how much you're willing to pay. Californians can still access FAIR Plan Association, which functions as the state’s insurer of last resort but it only provides fire-related coverage. Any additional coverage for theft, earthquake, flood will require wrap-around insurance.

So, keep this in mine when looking at homes. It is one of your contingencies as a buyer. But, look into your insurance needs ASAP so you're not left with a problem when it's too late.

And, always ask your lender if they have an insurance company recommendation. 

They are seeing way more than me what is working, and what isn't!