House (tale of woe) of the week and news you can use

The house pictured above is a foreclosure in Burbank's Rancho district.  My clients, who are well qualified and have been looking for a home for over a year, made a very smart, clean offer on this cutie. The dollar amount offered was in line with comparable neighborhood sales.  Alas, we learned that another higher offer came in at the same time.  We countered, but ...sigh.  Stay tuned for the outcome.

Now on to the really good news: mortgage interest rates are hovering around 4%, with points, for a conforming loan.  Jumbo loans have rates at low as 4.75%! Nobody is predicting an interest rate rise any time soon, either.

And here are a few tidbits for condo owners.  California has passed a law permitting solar panels to be installed on any condo.  An HOA can issue restrictions, but those restrictions can't be prohibitive.  Also, all condo projects and HOAs must now allow pets! Yes, once again, an HOA can issue restrictions (like a weight restriction, for example) but the restrictions can't be prohibitive.

Own a condo in Burbank or the San Fernando Valley? You may wind up paying your neighbor's bills

Here's a story from today's L.A. Times (yes, again) regarding condo associations and how finances are handled, especially when several home owners association members are in foreclosure.  Yes, the remaining members have to take up the financial slack.

What the article doesn't say is that it can be very difficult to sell a condo, even if you're not in arrears in your dues, if the HOA finances aren't healthy.  That's because banks don't want to make loans on these projects -- they believe, rightfully so, that the value may decline due to lack of reserves, inability to pay for maintenance, inability to pay insurance, etc.  Just this year I've experienced this for condo projects in the north San Fernando Valley, Burbank, Toluca Lake or Studio City.  If you are interested in purchasing a townhouse or condo in any of these areas, please contact me and we'll find out about the Association's financial health before you make an offer.