To avoid losing homes to foreclosure due to long response times for short sale transactions, three senators introduced legislation to speed up the short sale process.

Senators Lisa Murkowski (R-Arkansas), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed the bill addressing the issue of short sales timelines on February 17. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.

“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”

The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.

The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicerwill be limited to one extension of no more than 21 days.

Respondents from a Fannie Mae National Housing Survey for January 2012 expressed expectations for home prices to increase by 1 percent over the next 12 months, and most Americans continue to expect no change in mortgage rates.

This marks the fourth month in a row consumer expectation was positive.

“The Federal Reserve’s pledge to keep interest rates low beyond 2014, extending their prior time frame of mid-2013 announced in the summer, appears to have been reflected in the rising share of consumers expecting the rate to remain near record low levels for another year,” said Doug Duncan, VP and chief economist for Fannie Mae.

“At the same time, consumers expect home prices to rise over the next year, extending the streak of rising home price expectations to four months. If the employment market continues to strengthen, it is unlikely that the Fed will be able to keep its low interest pledge for long, and a more meaningful housing recovery may not be far behind if consumers are faced with the prospect of rising mortgage rates and home prices amid increased job security,” said Duncan…

Steve Thomas of ReportsOnHousing.com’s latest study of the Orange County housing market shows the early 2012 home shopping season is a curious mix of rising buyer activity as the number of owners willing to test the market shrinks.

Snippets of the latest Thomas report, based on trends found in brokers’ MLS listings system, as of Feb. 16 …

• Demand grew in two weeks by 435 homes to 3,569. Last year, it wasn’t until March 31 that dealmaking hit this level.
• Thomas mixes his demand and supply math to create a “market time” measure that shows how long it would take to sell all homes on the market at the current pace of new escrows. This time, expected market time for Orange County is 2.1 months — lowest level since August 2005, or 78 months ago. It was 3.65 months a year ago.
• For homes priced below $500,000, demand is up 32% vs. last year with just a “blistering” — as Thomas called it — market time of 1.6 months.
• Active listing inventory actually fell 226 homes in the past two weeks to 7,597 — lowest at this time of year since 2005. “A drop in inventory during this time of year is completely unprecedented,” Thomas said. The number of homes for sale has fallen 29 percent in a year.

Thomas concludes: “For Orange County housing, the beginning of 2012 has proven to be remarkably robust. Demand, the number of new pending sales over the prior month, has been steadily growing, but the last two weeks have been extraordinary. … This is more than just an encouraging start to 2012, it is a real sign of a much different housing market.”

Open house | Saturday , February 18th | 1pm-4pm

Completely remodeled 3-bedroom, 3.5-bath oceanfront home located on a prime lot on the Balboa Peninsula, with panoramic views of the bay, city lights and ocean. Its custom, open floor plan is ideal for comfortable living and entertaining, with a large beachside patio and rooftop deck. House is wired for security and surround sound entertainment systems. Designer window treatments, vaulted ceilings, and built-in cabinets throughout. Gourmet kitchen has stainless steel appliances. All baths have granite counters and designer stone-tiled showers. This home is in turn-key condition.

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Property is listed by Renee West, of Prudential California Realty.  DRE #01181153

Accomplishments — even little ones — go a long way toward a sunny outlook. Fortunately, there are plenty of easy, quick home repair chores you can do when you’re mired in the thick of winter. For max efficiency, make a to-do list ahead of time and shop for all the tools and supplies in one trip. On your work days, put the basics in a caddy and carry it from room to room, checking off completed tasks as you speed through them.

The housing industry has taken a beating these past few years, but a glimmer of hope is on the horizon. Housing starts are expected to increase 10% in 2012, according to a survey by the National Association of Business Economics.

Not surprisingly, though, the Great Recession curtailed many of the extravagances that buyers desired before things went south. Homebuyers want different things from their homes today. The watchword is flexibility — things such as rooms that serve multiple purposes and homes that can accommodate either “boomerang” children or aging parents.

We talked to homebuilders and industry watchers to find out what will be behind the front doors of homes built in 2012. How do these features compare to your wish list?

Easy access

• Single-story homes
• Grab bars in the bathroom
• Fewer stairs and more ramps

A bigger garage — for more than just cars

• To accommodate storage and avoid clutter
• “Man caves” — additional family area

The ‘resource center’

• Fewer rooms dedicated to one purpose
• Nooks for household work or homework areas

Homes within homes

• About one-third of American adults are living in the same household with another generation
• Increase in dual master suites / apartments

Really ‘green’ homes

• Greater energy efficiency
• Solar panels to power the house

Home plans that fit today

• Direct access to laundry areas/rooms
• Large pantries off the garage for bulk items from warehouses
• Drop zones for keys, mail, cell phones

The house that flows

• Open floor plan — increases the perceived size
• Great rooms opening to the outdoor areas

Infill is in

• “Infill” homes within existing towns
• Emphasizes affordability, public transportation access, job centers

All of this information is from MSN Real Esate’s article. Read more of this article by Christopher Solomon, of MSN Real Estate here: “8 New-Home Trends for 2012.”

Some homeowners have been waiting for years for a better housing market and a good time to sell. Is it better to wait a few more years and see if you can realize a higher sale price, or sell now and move on with your life?

The motivation for selling is a key factor. Are you commuting to work several hours a day and the commute is killing you? Are your children grown and your home is now too big, in addition to being a burden to maintain? Is your home too small? Have you taken a job out of the area? Can you no longer afford to own your home? Or do you no longer want to pay the price it costs to own your home?

These are all good reasons for considering making a move. Not only do current market conditions enter into the equation, but making a move like this is usually more complicated than it was the first time you bought a home.

HOUSE HUNTING TIP: First, you need to find out the probable sale price of your home and access the state of the current home-sale market in your area. You also need to know what you can do to maximize the salability of your home. Then you should consider where you’ll live next and how much that will cost.

If you don’t already have one, find an experienced real estate agent who specializes in your area. Friends whose opinion you trust are the best source of agent referrals. Meet with your agent at your home and ask for a comparative market analysis. This will give you information about what homes like yours have been selling for in the current market.

You’ll also want to know how long you can expect it to take to sell your home. How many homes like yours have sold recently? Are homes like yours in high demand? Or, is it located in a less desirable area that could mean a longer marketing time and, perhaps, a lower price than you were expecting?…

…Deciding where to move — and when — can be difficult. Some buyers can afford to buy a new home before selling, and prefer to make the move that way. Most repeat buyers can’t afford to buy first. Others who can won’t buy first due to market uncertainty and the stress of owning two homes at once.

The most prudent approach to making a move from one home to another is to sell first and rent if necessary until you find the right home to buy. By selling first, you will know exactly how much money you have to apply to a new home. Today’s housing market is volatile. A dip in the market could shave tens of thousands of dollars, or more, off your selling price…

Dian Hymer, a real estate broker with more than 30 years’ experience, is a nationally syndicated real estate columnist and author of “House Hunting: The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide.”

Read the rest of Dian Hymer’s article here at Inman: “6 Tips for Selling in Today’s Market.”