Dear Michael: Our house has a converted garage. It was a permitted conversion more than 30 years ago. We are thinking of converting it back into a garage and start parking cars in it. Are we better off cleaning it up and making it into some sort of recreation room or converting it so we can park our cars in it?
Answer: In most cases a permitted recreation room will add more value to a house then a garage. It is also easier to convert a recreation room to a garage then to reconvert a garage to a recreation room. Very few homes have this option and the permit you hold is a very good selling feature when you decide to list your home. A future buyer for your home will always have the option to choose and in most cases would find other means for parking.
Dear Michael: We are purchasing a short sale. Our agent told us that our offer was accepted by seller and chosen to be submitted to the bank. The home is now in foreclosure. Our negotiator said this is one of the most complex transactions she has worked. The short sale lender can accept our offer, reject, or counter it. Is there anything can we do to speed up the process and secure the house?
Answer: As I am sure you know by now, short sales can be a long, frustrating and complicated process. You are correct that the seller’s bank (the mortgagee) can either: accept, reject, or counter your offer. No matter what their ultimate response is, the average wait time to hear back is between one to four months. Unfortunately there is nothing more you can do in order to expedite the process. Though it is not as common as a few years ago, when on occasion, properties pending a short sale would end up in foreclosure. The Loss Mitigation department at a bank handles the short sale negotiation and a completely different department: the eviction unit, handle foreclosures. Often, they are not even in the same state, let alone the same building. These two departments typically don’t communicate with each other, so it can happen that the eviction team will complete a foreclosure on a property while the seller (or their representation) is actively negotiating a short sale with the Loss Mitigation department. This is unfortunate, but it can happen. Your best bet is to actively keep looking for a home. If you find something else you like and the period you have agreed for waiting on the short sale lenders approval is past due then you can put an offer on a different home and cancel your transaction with the first home. At some point you will need to decide if you are willing to wait or move on.
Dear Michael: Can the previous owner of a foreclosed home be held liable if he removes, say kitchen cabinets or any other permanent fixtures from the property? And, if so, who should be notified to report it?
Answer: If the home has already been foreclosed, then it is owned by a bank or holding company. In theory, the owner: the bank can do anything it wants. You ask who should be notified. If you mean that the house is going to be foreclosed, and the old owner (the one losing the house) is taking everything that isn’t nailed down, that is another story. Obviously, he isn’t supposed to do that—there is likely a clause in the paperwork he signed at closing when he originally purchased the home that indicates that he must maintain the condition and habitability of the home. However, the foreclosing bank may take a more practical approach: The fact is that the cost of getting him out is greater than the cost of going after him? Lenders/Banks/Servicers lose a great sum of money on foreclosures. It is an unfortunate situation. Homes being foreclosed are almost never in the condition they should be when they change hands. If there is a broker or real estate agent involved in listing and showing a home and the property is being vandalized, that agent would probably appreciate a call. The number should be posted on the door or on a sign out front. If you know the attorney office or auctioneer that is handling the foreclosure, call them. If it is an ongoing issue in your neighborhood with multiple houses, call local officials. Being a responsible and a good neighbor will actually helps sustain home value in your neighborhood.
Michael Kayem is a Realtor with Re/max /Execs serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com