Candy Spelling Reportedly Sells Holmby Hills Estate!

The widow of legendary TV producer Aaron Spelling put the 4.7-acre residence up for sale more than two years ago at $150 million. Petra Ecclestone, the daughter of British billionaire and Formula One Chief Executive Bernie Ecclestone, is in escrow to buy the property, a report says.

Candy Spelling’s sprawling estate in Holmby Hills, which has bragging rights as the most expensive residential listing in the U.S., reportedly has been sold to a 22-year-old British heiress.

Spelling, widow of legendary TV producer Aaron Spelling, put the 4.7-acre residence up for sale more than two years ago at $150 million, and she held firm to that price despite one of the worst real estate downturns in generations.

Now, Petra Ecclestone, the daughter of British billionaire and Formula One Chief Executive Bernie Ecclestone, is in escrow to buy the property, according to the Wall Street Journal.

The newspaper did not identify anyone confirming the sale, and did not say how much Ecclestone, a sometime fashion designer, is slated to pay for the property.

Spelling and her representatives either declined comment or did not return calls from The Times.

Known as “The Manor,” the home is the largest in Los Angeles County at 56,500 square feet, or slightly larger than the White House.

Spelling, the mother of actress Tori Spelling, once described it to The Times as the “greatest entertainment house ever” with a “kitchen where you can cook for two or 800.”

The home was completed in 1991 and was built to the Spellings’ specifications. Candy Spelling supervised the construction. The mammoth home boasts a bowling alley, a flower-cutting room, a wine cellar/tasting room, a barbershop and a silver storage room with humidity control, among other spaces.

Outside is a tennis court, a koi pond, gardens, a citrus orchard and a swimming pool with a pool house. The motor court can accommodate 100 vehicles and there are 16 carports. A service wing houses the staff in five maids’ bedrooms and two butlers’ suites. The house is believed to have more than 100 rooms.

Spelling will be moving into a 16,500-square-foot penthouse condo in Century City. She agreed to pay $47 million for the top two floors of a 41-story building in 2008 but subsequently got a price break, closing the deal last year for $35 million.

Are we facing the end of the 30-year fixed-rate mortgage?

Will the move to dismantle Fannie Mae and Freddie Mac mean the end of the 30-year fixed-rate mortgage as we have come to know it?

Many housing proponents say that it will. Without the government’s backing, they contend that the 30-year mortgage will become a relic of a bygone era when mortgage money was cheap and easy to come by. But others say America’s most popular home loan will still be available — if you can afford it.

Before digging deeper into the debate, a short primer: Although the long-term fixed-rate mortgage was born with the Federal Housing Administration — the government agency established in 1934 to help stabilize the then-shaky housing market — it was taken to its greatest heights by Fannie and Freddie, the two government-chartered institutions that were created years later to keep the money flowing for home loans.

These government-sponsored enterprises (GSEs) live and work in the secondary mortgage market, where they keep primary lenders flush with cash by buying their loans and packaging them into securities for sale to investors worldwide.

With their implicit government guarantee and their corresponding ability to attract cash even though they were offering a lower return than investors could earn elsewhere, the GSEs were, in effect, able to subsidize the 30-year mortgage, making it less expensive than it would have been otherwise.

That such government-backed loans are cheaper is evidenced by the difference in rates charged in the so-called jumbo sector, where mortgages in amounts above the legislated ceiling are off-limits to Fannie Mae and Freddie Mac. (The limit is as high as $729,750 in some markets. It is due to fall back to $625,500 on Oct. 1.) (LA Times)

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Bankruptcy Filings Fall 6% !

The number of Americans filing for bankruptcy dropped 6% in the first quarter of 2011 compared to the previous year, two industry groups said Monday.

The number of filings in the first three months of 2011 dropped to 340,012, down from 363,215 filings recorded in the first quarter of 2010, according to data from the American Bankruptcy Institute and the National Bankruptcy Research Center.

“Though bankruptcy filings are still elevated, consumers continue to take steps to reduce debt levels and shore up their finances,” said ABI Executive Director Samuel Gerdano said in a statement.

Bottom line: the sharp increase in bankruptcy levels in recent years might be starting to level off, and maybe even decrease.

Personal bankruptcy filings had been climbing steadily since 2007, when the U.S. fell into a deep recession that has left millions of Americans unemployed.

“[W]e now expect that consumer bankruptcy filings will dip below the 1.5 million filings recorded last year,” Gerdano said.

In 2005 Congress amended the Bankruptcy Code, making it harder for Americans to file and sparking a rush to file by October of 2005, when the amendments kicked in. In 2005, bankruptcy filings totaled more than 2 million. (CNN Money)

Is Earthquake Insurance Worth The Cost?

Earthquake insurance is expensive and limited, but standard California coverage would pay for a no-frills shelter should a temblor damage your home.

Japan’s massive earthquake has created a surge of interest in quake insurance in a place more than 5,000 miles away — California.

“Earthquakes are clearly on the top of people’s minds,” said Glenn Pomeroy, chief executive of the California Earthquake Authority, a nonprofit group designed to make quake coverage available to any Californian who wants it.

“The images coming out of Japan are surreal, and the news just keeps getting worse and worse. This has riveted people’s attention like no event I can remember.”

Only about 12% of Californians with home insurance have quake coverage. And the percentage of people who buy quake insurance in other states — including those with active faults — is far lower.

Should you buy quake coverage?

There’s no clear answer. The problem is that quake coverage is costly and limited. Experts say that it takes careful analysis to decide whether the expense is worth the potential benefits.

Although coverage varies state by state — and sometimes from one insurer to the next — it’s important to look at what the coverage costs, covers and excludes. Let’s take a close look at California’s standard earthquake policies to see how dramatically this coverage differs from standard home insurance.

Cost
The only thing you can say for sure about earthquake coverage is that it’s expensive.

But the price can vary depending on a number of factors. Quake coverage is generally priced at the higher end for older homes, homes made of masonry or brick, homes that have multiple stories, and homes that sit on sandy alluvial soil that’s less stable than clay or rock.

Consider the costs for a policy overseen by the California Earthquake Authority. A $500,000 policy for a one-story home in Beverly Hills would cost $648 if the home had been recently constructed of wood. But the same policy would cost more than three times as much — $1,962 — if the home was constructed of masonry or brick.

There’s an online calculator on the California Earthquake Authority site (www.earthquakeauthority.com) that can be used to help estimate the cost of a policy, depending on various factors.

Deductibles
A fire or home insurance policy usually sets the deductible at a dollar amount. But the deductible on a quake policy is usually by percentage — typically 10% or 15% of the structure’s replacement cost. So, if you buy a $500,000 policy, it would not begin paying until your covered losses exceeded $50,000 for a 10% deductible policy or $75,000 on a 15% deductible.

Coverage

The purpose of most earthquake coverage is to get a roof over your head, Pomeroy said. It isn’t aimed at getting your home back to the same shape it was in before the disaster.

Although the structure of a home and attached garage would generally be covered, after deductible, the walkways, driveways, decks and patios would be covered only to the extent that they provide safe passage into or out of your home. Swimming pools and landscaping would not be covered.

Decorative brick and masonry would not be covered. The policy would pay to button up the structure with stucco or wood to keep out the cold, but you would be on your own if you wanted to replace the decorative stonework that made your home more elegant.

Likewise, the policy would pay to replace a stained-glass window in the bathroom or foyer door, but only with an ordinary window.

If your home is made of plaster, the policy would repair the plaster on the outside, but it would pay only for drywall for the inside walls. The policy also excludes coverage for detached structures, such as guesthouses and pool houses. If your chimney falls down, the policy would pay $5,000 to repair it. If it costs more, the additional cost is yours alone.

The contents of your home are covered to the limits of your policy, but again, there are numerous exclusions — such as china and crystal and many other items that are likely to break.

“What we try to do is make sure that people will have shelter,” Pomeroy said, “but the policy is not the Cadillac of all Cadillacs.” (Los Angeles Times)

I figure it is always better to have insurance than not. You never know when you will need it. For more real estate info visit www.larealestate411.com or follow me on twitter @larealestate411

California housing market slump persists through February

California’s housing market extended its slump in February with mixed prices and weak sales despite strong investor interest in Southern California and the Bay Area.

The Golden State’s median home price was $244,000, up 2.1% from the prior month but down 2.0% from February 2010, according to DataQuick Information Systems. The state’s median price — the point at which half of the homes sold for more and half for less — has fallen on a year-over-year basis for five consecutive months after 11 months of gains.

February sales tallied 27,320, a drop of 1.4% from January and 2.8% from February 2010. Nearly 60% of the resale market last month consisted of distressed sales — foreclosures and so-called short sales, in which a bank allows a troubled borrower to sell a home for less than the outstanding mortgage debt.

Foreclosures made up 40.1% of the market, down from 40.4% in January and 44.3% in February 2010. Short sales made up 18.9% of the market last month, up from 18.7% in January and 17.6% a year earlier.

In Southern California, February’s median home price increased 1.9% from January to $275,000. That was unchanged from the same month a year earlier. Sales fell 0.6% from January and 6.4% from February 2010.

The Bay Area’s median home price in February was $337,250, down 0.2% from the month before and 4.7% lower from February 2010. Sales were up 0.5% from January but down 0.9% from February 2010. (LA Times)

(My Opinion: Will the market ever come back to what is was before the crash? Maybe in 10 years. Now is the time to buy because interest rates are so low. We may have not hit “rock” bottom on the Westside but prices have dropped enough that you are sure to make a profit in the coming years. Rumors are circulating that the banks are holding the foreclosures. I think this is 100% true and they will be released to the open market in a years time. I am praying that it is gradual and not all at once, which could create another dip in prices. However, inventory would go up which we are lacking now and sales would rise. Seems it is a catch 22. PS You can not find a home on the Westside for $275,000 if you could I would be buying up properties left and right!)

Follow me on twitter @larealestate411, visit my website www.larealestate411.com or email me lizcappola@gmail.com for property information in your area.

Foreclosure Activity Drops Sharply Nationwide

Filings fell 14% from January and 27% from a year earlier, according to RealtyTrac. The decline is attributed to a major overhaul of the process and court challenges by homeowners.

Big banks put the brakes on foreclosure activity last month as the American foreclosure system faced a major overhaul and homeowners challenged their lenders in court.

The decline in foreclosure actions — from default notices to bank repossessions — dropped the most in states where a court order is required to take back a home; such so-called judicial states do not include California.

Nationally, foreclosure activity fell 14% from January and 27% from February 2010, according to RealtyTrac. That is the largest year-over-year decline since the Irvine data firm began keeping statistics in 2005.

Evidence of a foreclosure slowdown comes as state attorneys general and federal regulators push the banks to revise the way they service loans, consider troubled borrowers for potential mortgage relief and conduct their foreclosure proceedings. Officials last week sent the nation’s biggest mortgage servicers a 27-page list of terms outlining these demands.

“The foreclosure process is stalled, and the seemingly impending settlement is delaying foreclosures,” said Mark Zandi, chief economist for Moody’s Economy.com. “The whole process is slowing down because of these issues.”

Negotiations involve the five largest providers of home loans. They include the arms of four national banks: Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. Also part of the talks is Ally Financial Inc., the former GMAC, which services loans through its GMAC Mortgage unit.

The wrangling began last year after revelations that some of the nation’s largest financial institutions relied on “robo-signers,” people who signed key court documents used in thousands of foreclosure cases across the country without reading or understanding them. The revelations led several banks to issue foreclosure moratoriums and lawmakers to question the integrity of the entire foreclosure system.

The February decline was probably related, in part, to banks resubmitting foreclosure filings that had been found to be faulty, said Rick Sharga, RealtyTrac senior vice president. About 70,000 foreclosure filings were resubmitted nationally last month, a number RealtyTrac did not include in its February estimates.

Courts have also delivered setbacks to some of the nation’s largest lenders in recent months, ruling on behalf of homeowners in key foreclosure cases. This increased scrutiny is probably leading banks to be more cautious with the way they conduct repossession proceedings, said Walter Hackett, an attorney who represents Inland Empire homeowners.

In seeking a global settlement, government agencies have proposed penalties against banks ranging from $5 billion to $20 billion. That money would be used to fund principal write-downs, officials have said.

But bank executives and Republicans this week began publicly pushing back. “We’ve got to be very careful that we don’t create an environment where we encourage people not to pay, and that’s the danger you have when you get into broad-based principal forgiveness,” Charlie Scharf, chief executive of retail financial services for J.P. Morgan Chase, said in a CNBC interview Wednesday.

Sen. Richard Shelby (R-Ala.) also on Wednesday blasted efforts by the state attorneys general and the Obama administration, calling them a “regulatory shakedown.”

House Republicans sent Treasury Secretary Timothy F. Geithner a letter asking him to explain the government’s legal justification for trying to impose sweeping changes on the way banks process problem loans, the Associated Press reported.

A total of 225,101 properties received a foreclosure filing last month, according to RealtyTrac, meaning 1 in every 577 homes was caught in some stage of the process. Big banks took back 64,643 properties, a 17% decline from January and an 18% drop from February 2010.

In California, 56,229 properties received filings, a 16% decline from January and an 18% decline from February 2010. Banks took back 12,734 properties, a 20% drop from January but a 1% increase from February 2010. (Los Angeles Times)

Follow me on twitter @larealestate411, visit my website www.larealestate411.com or email me lizcappola@gmail.com for property information in your area.

 

Celebrity Homes For Sale & Sold

Check out which celebs have their homes for sale and recently sold across LA!

Judy Garland’s Bel-Air Home sold For $5,200,000:

 

Childhood home of Oscar-winning actress and singer Judy Garland, who played Dorothy in the 1939 film “The Wizard of Oz,” has sold in Bel-Air for $5.2 million. The 1938 two-story house, with dormer windows and white columns set against a red-brick clad veranda, was designed by Wallace Neff. It went into escrow a week after coming on the market at $5.5 million and closed in two weeks. On more than 21/2 acres, the 5,500-square-foot house has five bedrooms and 61/2 bathrooms. A swimming pool, cabanas and a writer’s cottage sit in the backyard. (LA Times)

 

 

Got $42 Million? Interested in buying Jennifer Aniston’s home?

(The photo is from 2006 to see current photos visit: http://bit.ly/fT1xx7)

There were rumors, there was confirmation, now there’s a listing–Jennifer Aniston’s 1970 Hal Levitt in the Trousdale Estates is officially on the open market. Aniston bought the house in 2006 for $13.5 million, but pretty much gutted and rebuilt it with designer Stephen Shadley, according a 2010 Architectural Digest feature. Or as the listing puts it: “meticulously restored and redesigned under the direction of Hollywood’s leading lady Jennifer Aniston” (listing agent Jade Mills is rarely afraid to drop a celebrity pedigree). The property is just under an acre and comes with five bedrooms, seven and a half bathrooms, a gym, a pool, outdoor living room and kitchen, and a staff room (for the teachers’ lunch breaks?). Plus, says Aniston, it “vibrates with the love that created it.” All that’s gotta be worth $42 million, right? (Real Estalker Curbed)

If you are interested in buying a home in the LA area please contact me at: lizcappola@gmail.com