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The chairman of Habitat for Humanity San Fernando/Santa Clarita Valleys recently presented Woodland Hills agent Todd Bernstein with a proclamation from the City of Los Angeles. The proclamation recognizes Bernstein’s work for the non-profit organization that provides homes for families in need.

Since the economy tanked, it’s no secret banks have tightened their lending standards. Borrowers need to at least have good credit, down payment and a stable job to buy a home -a far cry from the easy money days of the real estate bubble. And that’s still no guarantee they’ll get financing.

So if a borrower has all of the above, what else could go wrong to prevent lenders from forking over the money for a home? I recently sat down with Arin Crews of L.A. Mortgage to discuss the issue. She brought up a few key red flags that she’s seeing slow down or kill deals altogether.

1. Buyers and Sellers are rushing deals. In this day and age of short sales and foreclosure sales, some buyers and real estate agents aren’t taking the time to learn about home’s major maintenance issues. And the fact is sellers aren’t always willing to pay for such repairs when push comes to shove.

Even though a buyer and seller have agreed on a sales price, lenders may back out of the deal at the last minute if issues like termites, foundation work, and others have not been addressed. Crews encourages agents and buyers to slow down and do as much homework as possible before getting too far into the deal.

2. Appraisals are coming in low. It’s still hard to tell if the residential real estate market has hit bottom in many locations. So appraisers are covering their bases, and those of lenders, by giving very conservative prices for homes. And the fact is lenders are not going to provide financing for more than the appraised price. Real estate agents should also familiarize themselves with the Home Valuation Code of Conduct.

3. Self-employed borrowers are having to prove long-term revenue. Some self-employed folks took a significant financial hit when the economy soured. Fortunately some of those same folks have rebounded and are in the market for a home.

But lenders generally look at finances over a couple year period of time. So somebody who is self employed may be making money hand over fist today and still get declined for a loan if his/her 2009 or 2008 revenues were down.

Crews said some lenders may be more lenient than others if an accountant can help show that the borrower’s other finances are in line.

4. Condominium HOAs need to be in the clear. Many lenders will not finance condo purchases in developments where the homeowners association has pending litigation.

Some of Rodeo Realty’s agents found a  niche last year selling only new construction condos. Sales were strong because builders have been liquidating condos, the HOAs are clean with no defaults, and the new developments are FHA approved.

This will be the last blog entry for 2010. So it seemed fitting to ask a handful of our real estate agents about the past year and what they envision for 2011.

Kittean Little – Beverly Hills

“2011 will be a far superior year than 2010. Consumer confidence is likely to grow and trickle into the real estate market.”

Bud Mauro – Northridge
“In 2010, as in 2008 & 2009, I think most REALTORS®, were expecting the market to make a come-back; to rebound, even just a little. Something to build up some confidence in the minds of the novice Buyers. It just didn’t happen.

Of course, the seasoned veteran Buyers didn’t have that problem. The “veterans” were buying Short Sales and REO’s with 50% cash down, and in many cases, all cash. Veterans “know a deal” when they see it. The novice Buyer, not understanding the current market and fearful of market stability always seems to want to “low-ball” the Listed Price. By the time they get the message that home has gone to a veteran Buyer.

The Sellers in the 2010 market had adjusted to the current market values. They had a need to sell and respected their REALTORS® opinion of market value. The novice Buyer was not comfortable with values, whatever the price. All in all, the real estate value of average priced homes stayed quite level in 2010. Some showing a slight increase (maybe around 2%), while the higher end properties showed significant price reductions.

The market was haunted all year long by the threat of the foreclosures still to come (Shadow Inventory). That hasn’t happened. Inventory is still low. NOD filings have lessened for the time being. The threat of an over abundance of foreclosed properties is still in the mix. When they will “hit” the market is a mystery.

The nation’s housing market may be headed towards a “double dip” slump, according to a press release from Standard & Poors. The good news is home prices in Los Angeles seem to be faring better than many other major cities in the U.S.

The S&P/Case-Shiller Home Price Indices showed home prices fell in 20 major cities in October 2010 compared to September 2010. The overall decline for the 20-City Composite was 1.3 percent. It was 1.2 percent for the 10-City Composite. Los Angeles posted a -0.7 percent drop, the fourth smallest drop of the 20 cities.

To view the full press release visit: http://www.standardandpoors.com/indices/sp-case-shiller-home-price-indices/en/us/?indexId=spusa-cashpidff–p-us—-

“The double-dip is almost here, as six cities set new lows for the period since the 2006 peaks. There is no good news in October’s report. Home prices across the country continue to fall,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s.

“The trends we have seen over the past few months have not changed,” he added. “The tax incentives are over and the national economy remained lackluster in October, the month covered by these data. Existing homes sales and housing starts have been reported for both October and November, and neither is giving any sense of optimism.”

Six markets, including Atlanta, Charlotte, Miami, Portland (OR), Seattle and Tampa, hit their lowest levels since home prices started to fall in 2006 and 2007. This means average home prices in those markets have fallen beyond the recent lows seen in most other markets in the spring of 2009.

The 10-City Composite posted a +0.2% annual growth rate in October, whereas the 20-City Composite  was in negative territory, down 0.8% in October.

Only four major metro areas showed year-over-year home price gains in October, including Los Angeles, San Diego, San Francisco and Washington D.C. Los Angeles and Washington D.C. posted the largest gains, 3.3 percent and 3.7 percent respectively.

There’s a lot of talk about how crummy the residential real estate market is and how agents had a rough go of it during 2010. There are fewer agents in the business compared to years prior and the ones who stayed are making a lot less money.

Carol Wolfe, a veteran agent in Encino, Calif., is on track to do more than $40 million in combined sales for the year. She has been in the business since the mid 1970s and said this is the second best year of her career. She sells homes from $140K condos to multi-million dollar estates.

The thing is she never stops the marketing machine, even in the good times. Name recognition, having an excellent reputation and providing a high level of customer service are key, she said.

She sends out approx. 5,000 postcards each month to her farm area, advertises on the Internet, advertises in local movie theaters, schools and car washes, and writes a weekly blog at: http://encino.patch.com/articles/keeping-the-slow-economic-recovery-in-perspective

Ken Marker and Corey Brown, agents based in Sherman Oaks, Calif., closed more than 120 deals in 2010. The team sells property in the San Fernando Valley area ranging from condos to high-end estates. These guys are consistently top producers for Rodeo Realty.

Congratulations to Ben Salem! The Southland Regional Association of REALTORS® (SRAR) chose him as Good Samaritan of the Month for December 2010. For the association’s announcement visit: http://www.srar.com/node/946

The SRAR Good Samaritan program is designed to feature REALTORS® that have made a difference in their community through charitable and/or volunteer endeavors, according to SRAR. Monthly recipients are featured in the REALTOR® Report and their name is added to the Good Samaritan plaque hanging in the front lobby of SRAR.

Salem has been a member of the association since 2003. The following is an exerpt from SRAR’s announcement.

Working under the umbrella of Rodeo Realty, Ben Salem Properties donates 2% of every closed transaction to various charities. His colleagues have recognized him for his work educating industry professionals in the area of REO evictions and best practices. Ben has donated his time on a variety of panels that have been focused on borrowers’ rights; the difference between personal property and debris; techniques for occupancy determination; and how to break the ice with occupants.

In addition to the education he provides to his client base and peer group, Ben has become very active in an organization called “No Paws Left Behind”. “No Paws” is an organization that helps to care for abandoned animals that are victims of the current surge in foreclosures. They also work directly with families in foreclosure, providing assistance with vet bills, food, and help in finding pet-friendly alternative housing and money to cover deposits.

Ben teamed up with “No Paws” founder, Cheryl Lang to help raise awareness and funds to care for these animals by providing shelter until they can be transitioned into new homes. Lang estimates that nearly one million pets including dogs, cats, birds, horses and other animals are at risk as the foreclosure crisis mounts.

In April of this year, Ben and his Elite REO Team helped organize a Casino Night in Palm Springs that raised roughly $25,000.00 for “No Paws”. Funds raised for this event will cover costs including the care of pets left behind, support of local animal shelters, adoption, spaying, neutering and vaccinations. In many cases families are forced into choosing between buying groceries and caring for their pet.