California Dual Tracking Ban

California’s “Homeowners’ Bill of Rights”, which became effective January 1, 2013, prohibits banks and mortgage servicers from “dual tracking” when a homeowner is pursuing an alternative to foreclosure.  However, the dual tracking prohibitions are quite different, depending on whether the homeowner is seeking a loan modification or if he is attempting a short sale.

Dual tracking is the practice by lenders of continuing the foreclosure process while at the same time negotiating with the borrower over a foreclosure alternative.  Regrettably, the real estate lore of recent years is replete with horror stories of foreclosures taking place within just a few days (or less) of the borrower being told that he has been approved for whatever foreclosure alternative he had been seeking.

So it is a good thing that the California legislature adopted bills that, among other significant measures, prohibited the practice of dual tracking.  But it is not so good that they treat loan modifications and short sales so differently.  In the case of the latter, the dual tracking prohibition is of considerably lesser value.

In the case of a loan modification, the servicer cannot record a notice of default or notice of sale, or conduct a trustee sale, if the borrower’s completed application for a loan modification is pending a decision.  To be sure, seasoned agents will notice that the application must be complete, and they will wonder how or when that will be determined.  There are also too many stories about various applications (both for loan modifications and for short sales) that were never complete because this or that document was missing.  Even though it had been sent numerous times.  At least, under the California legislation, there is now a procedural requirement that the receipt of documents be acknowledged. And there are other procedural rules that should help.

So, let us say that a loan modification application is complete.  At that point, the foreclosure process stops.  Moreover, if the application is denied – and it must be done so in writing – there is then a thirty-day period during which the borrower may appeal the decision.  No foreclosure activity may occur during that period either.

In short, a person who applies for a loan modification may, after a complete application is submitted, has a period of about sixty days during which no further foreclosure activity may take place.

What about the borrower who is attempting to accomplish a short sale?  The provisions are considerably different.

Unlike applying for a loan modification, when a borrower applies for a short sale the stop on foreclosure activity does not begin when the application is complete.  It doesn’t begin until the application has been approved, plus other requirements.

Not only must there be written approval from all lien holders (e.g. 1^st, 2^nd, and mortgage insurer, as applicable), but also “proof of funds or financing has been provided to the servicer.”

Now, in a good short sale, you might have 1^st and 2^nd lien holder approval within 45 – 60 days.  Of course it could be triple that.  Then, and only then, would the buyer be likely to engage in the actual process of applying for loan approval.  These days, that could be another 30 – 45 days.  So, not until both of those things had happened (roughly 75 – 105 days) would the stop provisions apply to foreclosure activity.  All of which is to say, a foreclosure could easily occur during the attempt to bring about a short sale.

California short sale sellers who are counting on the Homeowners’ Bill of Rights to give them a break from dual tracking should be aware of this.  So should their agents.

5 Tips for Sellers From Buyers

It is a rare occurrence these days to have a home’s buyer and seller sit down around the kitchen table to make a deal. In some areas, they do still sit around the attorney’s boardroom table to close the deal, but by that time, the deal is done and the ship has already sailed on any avoidable mistakes.

So in the vast majority of home sales, buyer and seller never connect in person, never talk, and never exchange insights or information except in the most formal, written formats - despite being effective business colleagues in one of the single most important transactions of their lives. And here’s the rub: buyers sit on a wealth of knowledge that sellers crave to know, most of which could be filed under how to attract buyers and make them want to buy a home (or at least, not turn them off).  So, since buyers and sellers can’t get together, allow me to reveal a handful of helpful insider insights that the buyers I’ve worked with and connected with over the years would reveal to sellers, if they could.

1.    You should see what your home looks like online.  No, really.  If you did your due diligence before listing your home for sale, met with agents and reviewed their marketing plan they use for their listings, chances are good that you chose an agent who takes online marketing very seriously and said as much during your listing interview. But somehow, there are still hundreds of listings in every major city that receive a failing grade on their online presence, once the home has actually been listed.  

Every day, online listings are activated on Trulia and all across the real estate web with:

• only one or two pictures
• no pictures at all
• multiple photos that represent the home very poorly or show it in its worst light, in terms of the shots selected and included in the listing (e.g., photos focusing on the dumpster in front of the house, or the messy breakfast dishes on the table), or
• listing descriptions that bemuse us buyers, but would befuddle and even anger the homeowner, like the homes whose descriptions start off with the attention grabbing: “This place is a mess!”

Sometimes, there’s just a glitch along the production chain that it takes to get a property marketed; other times, there’s an actual error in judgment that took place. But it’s free for you, seller, to hop online and just do a quick audit of the way your home is represented in the same listings, virtual tours, and property websites that buyers will see.  And it’s often the only way these glitches will get caught, brought to the agent’s attention and rectified.  So you should.

2.    If your home is seriously overpriced, I’ll wait for the price to come down before I even come see it.  You might be thinking the best plan of action is to list your home high, planning on the fact that prospective buyers will want to bargain the price down. And, in fact, this might be true for your area - your agent can brief you on what the standard negotiation practices in your neck of the woods are, and you two can then work together to factor them into your pricing strategy.  

That said, even in an area where homes generally go for below-asking, buyers are willing to do some basic negotiation. They are not, generally, interested in correcting a seller’s belief system about their home and its value that are clearly not based in the realm of reality.  That seems daunting and like too much work to do - as well, there are so many properties to see, and buyers have to invest so much time, energy and emotion in making an offer, they don’t like to do that in cases where the seller’s list price is so bizarrely above-market that the chances of coming to a meeting of the minds about price are slim.

If your home is dramatically overpriced, compared to the others in the area or compared to it’s market price range, most serious home buyers in the market for a home like yours will either (a) never come see it, because it doesn’t show up in the price range they are searching online, or (b) not come see it unless and until you drop the price, because it simply isn’t worth their time and energy until you correct your pricing into the realm of the realistic.

3.    There are a whole lot of fish in the sea - I only have to find one.  Agents and mortgage brokers talk to buyers a whole lot about compromising, and what they can expect on the market as a whole, and such. But my reality is this: home buyers are not in the business of market analysis.  They are in the business of finding a home.  Only. One. Home. 

Yes, ultimately, every buyer has to make some compromises. No home is perfect, and every person who buys a home eventually gets that. But even in a heating market like the one we’re in right now, there are lots of homes coming onto the market every single day. Any given buyer only has to find one that works for them. To buy your house - any house - that buyer really does need to feel inspired by it enough to feel like it could work for their family, their needs and their life as their home.  

If you take shortcuts when it comes to primping and prepping your home for the market, it becomes super obvious to buyers when they scrutinize it, even if it’s really priced well.  On the other hand, the homes that were well cared for, prepared and priced shine above the others, at every price point.

4.    If I nitpick your house, that probably means I like it.  Every buyer’s broker has a horrific moment, at some point in their career, where they realize their buyer has been trash talking a home - its nasty wallpaper, vomitrocious carpet, silly stylistic choices, etc. and so forth - and the home’s seller has managed to overhear this diatribe.  The pool boy who was at the property turns out to be the seller’s son, the sellers turn out to have been next door or in the basement through the entire showing, or the teddy bear-cum-Nanny Cam has advanced audio capabilities.

Here’s why this horrifies buyer’s agents: the buyer that goes to all that trouble to dissect precisely what they would do differently if a given house belonged to them is a buyer who is thinking about making an offer on that very house.

The more questions, critiques, nitpicks, “What I would do’s” and such a buyer rattles off about a home, the more likely they are to make an offer on it.  Of course, the occasional curmudgeonly amateur designer likes to just rip other’s decor choices apart for the fun of it, but many otherwise lovely individuals do this when they get serious about a home as part of the exercise of visualizing the property as theirs, and envisioning themselves, their families and their stuff in it.  This is how buyers take a place that might not be perfectly move-in ready for them, and figure out how they might be able to make it work.

So if you happen to overhear a nitpicky buyer dissecting your home and verbally tearing down walls or ripping up carpet, don’t despair.  They might simply be mentally “trying on” your home as their home.

5.    When it comes to staging, the bar is high. Really high.  HGTV. Houzz. Architectural Digest. All these outlets which constantly publish beautifully designed and decorated homes have influenced what the average American expects their home to look like - and yours, for that matter.  Additionally, all the do-it-yourself publications and shows along with the advent of home improvement stores which double as DIY design emporiums have given everyday people of modest means the power to live in beautiful and functional homes, without breaking the bank.  

Beyond all this, professional home staging has taken off in recent years, as data has repeatedly shown that staged homes sell faster, for more, and more certainly than homes that are not staged, nor well-prepared by their owners.  So not only is your home competing with the homes buyers are seeing on TV and in the magazines, it is also competing with professionally staged homes for sale right in your own neighborhood - homes that the very buyers who will come to see your home will also have seen, possibly right before or after they view yours!

So, if you want to and can afford to have your home staged, do.  If you can’t, you should still take the preparation of your home very seriously, and include your agent or a stager you hire for an hour of advice in the process, taking their input on things like:

• what furniture to get rid of
• which improvements will get you the most bang for your buck with local buyers
• and what paint, flooring and other finish materials will appeal to the broadest buyer segment in your area.  

These pros often also have contacts with local handypeople, painters, landscapers and other vendors who can get your home ready for market in a time and cost-efficient manner.

Low Supply Points to Price Increases of 5-10% In 2013

The low supply of housing stock recently reported is giving Capital Economics reason to believe home price forecasts under 5 percent are actually conservative estimates.

Realtors in December expected prices to rise by about 3.5 percent over the next year, while consumer estimates were more modest at 2.5 percent for the same time period, the analytics firm noted in its monthly housing report. The estimates show a growing optimism among those groups.

For example, in March 2012, Realtors expected prices to rise by about 2.5 percent and consumers projected a 1 percent increase, according to a chart in the report.

But, with the low supply of inventory, Capital Economics anticipates much bigger gains. Recently, the National Association of Realtors reported existing home sales in December fell to a 4.4 month supply, the lowest level since May 2005, while the new home sales report from the Census Bureau/HUD says there is a 4.9 month supply of homes for sale.

“At face value, the 4.9 the months’ supply of unsold stock currently on the market in December points to house prices rising by as much as 10% y/y. For now, our forecast is for a 5% rise during 2013,” wrote Paul Diggle in the report.

The tightening in supply is not expected to continue, however. Capital Economics says it expects to see a rebound in housing starts and for the number of willing sellers to rise, which means inventory will hit a bottom soon.

The firm also noted the three major house prices indices— Case-Shiller, FHFA, and CoreLogic —posted yearly price gains at around 5 percent and as high as 7.4 percent in November.

Winter Season Slows Home Price Gains

National home prices continued to post strong yearly gains in January as lower-priced homes drove activity in the housing market, according to a report from Clear Capital. At the same time, prices showed signs of weakening on a quarterly basis.

On a national level, January home prices increased 5.4 percent from a year ago, but inched up by just 0.9 percent on a quarterly basis, the data provider reported.

Out of the four regions, the West maintained its lead with yearly gains and quarterly gains of 12.9 percent and 2.1 percent, respectively. As prices rise and REO saturation decreases (the portion of REO sales relative to total sales), Clear Capital expects price trends to moderate. Over the years, REO saturation has fallen in the West from the peak of 52.5 percent in March 2009 to 17.2 percent.

The remaining regions all saw yearly gains, with the South experiencing a 4.5 percent improvement in prices, followed by 2.7 percent in the Midwest and 2.4 percent in the Northeast. However, prices were flat on a quarterly basis in the three regions: South (+0.7 percent), Northeast (+0.6 percent), and Midwest (+0.2 percent).

Dr. Alex Villacorta, director of research and analytics at Clear Capital, explained the softened quarterly gains suggest “the budding recovery is not immune to the slower winter season.”

“What remains to be seen is if home prices will continue to rise, or remain stable through the winter. Regardless of what trends play out in the near term, we expect home prices to continue on a positive trajectory long term,” he added.

Clear Capital pointed to the low tier priced segment as the “main driving force in markets across the U.S.,” more specifically, homes that sell for $102,000 and less. According to the report, many of these lower-priced homes are REOs, which are attractive to both investors and buyers.

“REO sales continue to make an impact on the overall health and recovery of the housing market,” the data provided stated.

On a national level, the REO saturation rate has fallen from the March 2009 peak of 41 percent to 18.4 percent in January.

After measuring price trends in metro areas, Clear Capital noted one surprising occurrence-no Florida metros made the top 15 list for price growth.

“On a more micro level, Florida metros, namely Miami, Orlando, Tampa, and Jacksonville, were all missing from the top 15 performing market list. Since September 2011, at least one of these markets made the list,” said Villacorta. “While this isn’t confirmation that the recovery is finished in the sunshine state, it’s certainly something to keep an eye on.”

On average, metros on the top 15 list registered yearly gains of 13.4 percent, well above the national average, but reported quarterly gains under 5 percent. Six of the top 15 metros were in California.

Top Five Markets
(Based on quarterly gains)

1. Atlanta (+3.2 percent)
2. Phoenix (+3.0 percent)
3. San Jose (3.0 percent)
4. Las Vegas (2.9 percent)
5. Birmingham (+2.7 percent)

Peaks and Valleys of House Hunting Online

In general, the most popular times of year for online home searches are at the start of the year and in the summer, according to the Trulia Real Estate Search Report released Wednesday.

However, Trulia reveals some fluctuation across the country with a major tendency for online searches to peak when the weather is warm and dry.

“Local weather patterns have a big impact on when people search for homes online,” said Jed Kolko, chief economist for Trulia.

“Search activity in warm-winter states, like Florida and Hawaii, peaks in January and February. But for most of the country, search traffic is highest in March or April, especially in regions where summer brings rain,” Kolko explained.

Nationally, online real estate searches pick up at the start of the year, peak in March or April, and then reach a lull in May.

Searches peak again in June and July and then taper off toward the end of the year.

Overall, December is the slowest state for online searches, according to Trulia’s data.

To zero in on statewide trends across the country, Trulia reviewed search patterns from 2007 to 2012, removing the upward trend to observe whether search activity in a particular month is above or below the annual average for each state.

In January, search activity in Hawaii and Florida is 10 percent higher than the annual average for each state.

Several states reach their search peaks in either March or April—32 states between the two months.

Southern states generally experience their busiest search months in the July. Mississippi is the only state to peak in June.

Montana and Oregon have the latest search peak months—August for both.

No states peak between September and December. In fact, according to Trulia, all states are at least 10 percent below their annual search average in the month of December.

Understanding these statewide trends can benefit both buyers and sellers, according to Kolko.

“Buyers and sellers can use these ups and downs to their advantage,” Kolko said. “Sellers looking for the most buyers should list when real estate search traffic peaks.”

On the other hand, “[b]uyers, however, should think about searching off-season, when there is less competition from other searches,” Kolko said.

Remodeling Projects That Yield the Greatest ROI

A lot of homes can use a facelift, especially properties in distress, but some projects may not be worth the sweat and dollars when considering the return on investment (ROI).

Based on results from the 2013 Remodeling Cost vs. Value Report, the National Association of Realtors (NAR) revealed exterior projects will typically yield the highest ROI.

“Projects such as siding, window and door replacements can recoup more than 70 percent of their cost at resale. Realtors know what home features are important to buyers in your area and can provide helpful insights when considering remodeling projects,” said NAR president Gary Thomas, broker-owner of Evergreen Realty in Villa Park, California.

The report found replacing a door with a steel entry door anticipates the most return, with an estimated 85.6 percent of costs recovered upon resale. On average, the report found a steel entry door replacement is costs about 1,137 on average.

However, an article from House Logic, NAR’s consumer website, warned the lifespan of a steel door is generally shorter than fiberglass or wood doors.

The project that would reap the next highest return is a wooden deck addition. The project is estimated to recoup 77.3 percent of costs upon sale, but project expenses should average $9,327.

Replacing a garage door ranked third, with 75.7 percent of costs expected to be recouped and a lower average cost of $1,496. While most of the high-ranked projects were exterior, a minor kitchen remodel is expected to yield the fourth highest return of 75.4 percent. The average cost for this project is $18,527.

Wood replacement windows were No. 5, with 73.3 percent of expenses expected to be recouped, along with an average cost of $10,708.

Other projects expected to yield at least a 70 percent return were attic bedroom (72.9 percent), vinyl siding replacement (72.9 percent), vinyl window replacement (71.2 percent), and basement remodel (70.3 percent).

In general, projects involving additions, with the exception of decks, were expected to cost the most, while the returns were not as high. Among the additions, a two-story addition ranked the highest, but costs an average of $152,470 and yields a return of 65.4 percent.

Home office remodel (43.6 percent) and sunroom addition (46.5 percent) are expected to recoup the smallest return.

However, before tackling a project based on the report, Thomas advised consulting a Realtor to decide what improvement projects will provide the most upon resale in a homeowner’s specific market.

“Each neighborhood is different, and the desirability and resale value of a particular remodeling project varies depending on where you live. When making a home remodeling decision, resale value is just one factor that homeowners should take into consideration,” he added.

The report is completed in cooperation with NAR and compares construction costs with resale values for 35 midrange and upscale remodeling projects in 81 markets across the country.

Prices, Sales Improve in Largest Counties in December

Out of the 42 largest counties in the nation, all 42 exhibited price growth on a monthly, yearly, and quarterly basis in December, according to DataQuick’s monthly Property Intelligence Report (PIR).

DataQuick’s PIR assesses the housing market based on valuation trends, REO inventory trends, and sales trends.

In addition to positive price growth in all 42 counties, sales also showed substantial growth in December. Month-over-month, December sales increased in 32 out of 42 counties, up from just 13 counties in November.

Over the last year, sales were up in 38 counties in December compared to 25 in November. On a quarterly basis, sales improved in 12 counties, up from 7 counties in November.

While home prices and sales improved, VP of analytics for DataQuick Gordon Crawford, Ph.D., noted foreclosures worsened compared to November.

“Several fiscal uncertainty factors including debt limits, proposed tax increases and spending cuts may lead to further weakening the housing market,” he added.

In December, foreclosures increased month-over-month in 26 out of 42 counties, up from 18 in November. Over the last quarter, foreclosures were up in 27 counties compared to 22 in November. Over a one-year period, foreclosures rose in 21 counties in December compared to 13 in November.

“Although foreclosures continue to affect the market, a stabilizing labor market situation has contributed to strong home prices and sales growth over the last year,” Crawford said.

4 Ways to Hater-Proof Your Home, Before You List It

In my experience, there’s one fundamental truth about haters:  you can never fully escape them. The only way to live a 100% hater-free life is to never stick your neck out, and never do anything because, as the saying goes, you simply cannot please all of the people all of the time.

And this is particularly true with real estate and putting your home on the market - because homes, locations, aesthetics and such are so much a matter of personal preference, some people will find something to criticize about even the most perfectly staged, priciest properties on the market.  

As a home seller, your job is not to try to make your home be all things to all people.  That said, you don’t want to be the house that nearly every buyer and broker sees, rolls their eyes and utters the same few, predictable deal-killing criticisms. Fortunately, what is predictable is avoidable. Let’s explore the most common things buyers hate about listings they see. In the process, you’ll get equipped to sidestep those issues and, in large part, hater-proof your own home.

House Hater Complaint #1:  Odors. Some of you might think I’m beating a dead horse, here. But as long as house hunters keep emailing me to ask why, in the name of all that is sacred, they keep seeing homes that smell like all sorts of madness and mayhem, I’m going to keep repeating this message. 

Viewing a home sounds like it’s all about the visual of the experience. And visuals are critical - your home should be in its Sunday best, so to speak, when it’s being shown, in terms of being spruced, staged and clutter-free. But when a buyer comes to see your home, they don’t turn off the rest of their senses. And there is nothing that can turn a buyer off from a home, they’d otherwise like, quicker than a powerfully bad odor - in particular, cigarette and pet odors in a house that seems to have been well-cleaned create the concern that they might be permanent and that the buyer might not be able to get rid of them without dropping some serious cash on cleaning or even removing wall, window and floor coverings.

If you are a seller and you know that someone has been habitually smoking in your home or that you have had a “challenge,” let’s say, with pet accidents, do not ignore the problem. And do not think that because you had the carpet shampooed or the drapes cleaned, or because YOU can’t smell anything, that the problem is gone.  The fact is that the human sense of smell very quickly gets used to smells that it lives with or is surrounded with on a regular basis.  So it’s critical to get your agent, stager or even your friends and family members - who don’t live with you and love you enough to be honest! - to help you detect bad smells and odors, and make sure they are eradicated by any means necessary, before you place your home on the market.

House Hater Complaint #2:  Glaringly extreme overpricing. There’s the kind of overpricing that makes a buyer say, “Hmmm - seems a bit high. Let’s go see it, but we might have to offer a little less than the asking price if we like it.”  Then there’s the kind of overpricing that makes buyer say “I’ll wait until a price reduction” or worse, hold their sides from laughing. 

When overpricing is glaring, many buyers and buyer’s brokers will comment on it or inquire about it. What they are less likely to do is actually come out and see the place - especially if they weed it out online after comparing its specs to all the other homes in the area and the price range.  Often, homes this severely overpriced simply don’t sell, or not until after they’ve had some serious price cuts or have been on the market so long buyers begin to feel confident about making lowball offers.

In fact, the goal is the opposite - you want your home to stand out as a property that is not dirt cheap, but does present a good value for the money - that’s what motivates buyers to get out of their chairs and into the property for a viewing.

Here’s how to hater-proof your home’s listing against this issue: fixate on the comps. Smart sellers deactivate their emotional attachment and very human tendency to overvalue their precious homes by poring over the sales prices (not list prices) of similar, nearby homes that have recently sold. Your agent will be happy to help you walk through this data and will almost certainly recommend a list price, but ultimately you make the decision about the price point to list your home at.

Also, consider using your broker’s first Open House as an additional hater-proof measure: if the agents overwhelmingly comment that they think the home is significantly overpriced, listen.

House Hater Complaint #3:  Dirt and messes. Possibly the single largest source of House Hater Complaints I’ve ever heard are the dirt, messes, piles and personal belongings that buyers find so distracting, when they walk into a home for a viewing or Open House. Obviously, homes that are filthy from floor to ceiling are fertile fodder for haters, but often those homes are bank-owned or otherwise distressed so that the sellers aren’t likely to do much.  What is underestimated is how often even savvy home buyers are distracted (and disgusted) by relatively clean homes that just have a few outstanding messes, like piles of dirty dishes in the sink, piles of dog poo in the yard or even piles of papers, mail, books or clothes lying out in plain view.  

Will one or two such items ruin the sale of your home? Perhaps not. But a few of them (or more) can certainly distract a buyer enough that they fixate on your messes and, in the process, fail to see what is so great about your property.  And as I see it, cleaning up, meticulously, before every single showing is free - so it makes no sense to even run the risk of turning off a prospective buyer by letting messes get in the way of their ability to visualize themselves and their families flourishing in your home.

  

House Hater Complaint #4:  Lots of little malfunctions.  All of us tend to think our homes are in fantastic condition.  After all, you have the furnace maintained regularly, you’ve got granite and dual paned windows - maybe you even had the floors refinished or the walls painted in preparation for putting your place on the market. 

That’s all fantastic - all the non-cosmetic work you’ve done to maintain and improve your home should be trumpeted in your marketing materials, and the cosmetic items will (or should) speak for themselves. But here’s the thing: buyers who visit your home won’t be running your dishwasher or testing the furnace (at least not until inspections).  What they will do - almost unconsciously - is:

    •    flick light and fan switches

    •    open or close window coverings, closet, room and entry doors, 

    •    open and close drawers, cupboards, gates and fences and

    •    hold the handrails as they walk up and down the stairs.  

They will hear leaky faucets and point out water spots from long-ago repaired leaks, and they will notice (or potentially trip on) uneven exterior tiles, paths and walkways. And even though these items might be vastly less expensive to fix than the roof or sewer line you had replaced, they are much more visible and noticeable to a buyer.  In fact, buyers don’t always even know that the little malfunctions and repairs that need doing are little or inexpensive. And when they notice a bunch of these sorts of things in a single property, they can jump to the conclusion that the whole place is rickety. 

Since these little fixes are inexpensive to make, have them completed before you list, if at all possible. You might even ask your agent to walk through the property with you and to give you a handyperson reference for someone they know works efficiently.

Finding the Perfect Neighborhood: As Important as Finding the Perfect Home

Children

Do you have children or are you planning to have them in the future? If children are a factor, be sure to learn about the schools in your neighborhood. Even if you don't have children, buying a home in a neighborhood with good schools and a child-friendly atmosphere will give your home price a boost. 
Location

The old real estate adage "location, location, location" is important for several reasons. 
Do you want to be able to walk or ride your bike to work? Or do you not mind commuting further to be able to live in an area where you can escape from the hustle and bustle? 
Do you want to be able to walk to restaurants and shops? Or do you not mind having to drive to go out or go shopping? 
Access to public transportation or freeways is important to consider when choosing a neighborhood that accommodates your lifestyle preferences. 
Type of Home

Do you want a large house with a yard to accommodate guests and children? Or do you want a condo where most maintenance is taken care of for you (and you don't mind paying HOA fees)? Drive through the neighborhood and take note of the patterns in the layout of the homes, for example, bungalow, ranch, Tudor or Victorian. Does the type of home offer the amount of space and storage you will need? 
Do you like the character of old homes and neighborhoods, or do you want a brand new home? An old home can have more charm, but may also require more maintenance. In addition to the age of the home, investigating the demographics of the neighborhood may also offer insight about the average age of your neighbors. Your new community may end up better fitting your lifestyle if you know you'll be surrounded by families of similar ages to your own. 
Noise

Do you not mind noise or do you want peace and quiet? If you want a lower-key neighborhood, avoid living near a college or an area with a hopping nightlife. When visiting neighborhoods you are interested in, take note of the amount of traffic and how close it might be to a major thoroughfare; both factors would impact volume levels, even during non-peak traffic hours. 
Safety

In most cities, safety is also a factor. Evaluate whether a transitional neighborhood where you can get more bang for your buck is an option for you, or if a secure, established community is more your style. Local police departments will be able to provide you with information on recent crime rates in the area you are considering. 
Economy

Find out how long homes are on the market and if sellers are forced to reduce their price to find a buyer. Also look around to make sure the retail isn't struggling. If you see abandoned buildings and "for rent" signs, you may want to keep looking. On the other hand, if you think the neighborhood is about to turn around, you may be able to get a great deal. 
Hit the Pavement

Once you've identified several neighborhoods that are up to your standards, go investigate them. Hang out at the coffee shop or knock on some doors, and ask current residents why they love where they live. Walk around the neighborhood during the day to see what people are up to. Similarly, be sure to check out the neighborhood at night, and make sure you feel safe and secure about where you are. 
Finally, if there is a neighborhood association, check if there are any construction restrictions or other similar guidelines that could hinder future plans for your home.

California Dual-Tracking Ban Leads to Spike in Cancelled Foreclosures

A specific provision in California’s Homeowner Bill of Rights may have led to a surge in foreclosure cancellations, according to a report from ForeclosureRadar.

Foreclosure cancellations in California spiked 62.1 percent from September to October and 36.7 percent over a one-year period, data from ForeclosureRadar revealed.

The jump from September to October is the largest monthly increase since the data provider began tracking foreclosures in September 2006.

ForeclosureRadar observed the increase may be due to a particular provision in the Homeowner Bill of Rights that places a ban on dual-tracking. Dual-tracking occurs when a loan is being pushed through the foreclosure process while also being considered for a mortgage modification or short sale.

Even though the Homeowner Bill of Rights doesn’t take effect until the start of next year, ForeclosureRadar says it appears lenders have begun the process of canceling foreclosures that are being considered for short sales or modifications.

“The California Homeowner Bill of Rights that takes effect in January 2013 is beginning to impact foreclosure trends,” said Sean O’Toole, founder and CEO of Foreclosure Radar. “This is another example of where changes in foreclosure trends are driven by government intervention, and not necessarily economic recovery.”

The impact of dual-tracking is still uncertain, but O’Toole speculated, “the elimination of dual tracking may avoid some unnecessary foreclosures, but will lengthen the foreclosure process and delay ultimate recovery. Expect further impacts to foreclosure trends in the months ahead.”

In addition, the $25 billion mortgage settlement placed a ban on dual tracking, which took effect October 3, but the restrictions were for the five largest servicers involved—Bank of America, Citi, JP Morgan Chase, Wells Fargo, and Ally.

“Much of the California Homeowner Bill of Rights codifies for California what was in the National Mortgage Settlement, but it applies to all lenders,” Susan Sierota, chief marketing officer at ForeclosureRadar, added.

Fewer California properties also entered the foreclosure process last month. In October, foreclosure starts fell 8 percent month-over-month. Foreclosure sales increased monthly by 9.3 percent, but fell 38.9 percent from last year.

Two other states in the West saw monthly declines in foreclosure starts during the same time period. In Arizona and Washington, October foreclosure starts fell 15 percent and 4.1 percent, respectively.

Two other West coast states, Nevada and Oregon, saw foreclosure starts increase 32.2 percent and 58.5 percent, respectively.

Foreclosure sales in Nevada came close to matching starts, increasing 33.8 percent, while foreclosure sales in Oregon fell 55.3 percent.

In September, all five Western states saw monthly declines in foreclosures starts.