West Hollywood, California (June 2, 2008) - In a report to be formally presented to West Hollywood’s City Council tonight, the Rent Stabilization Department reports that the rate of foreclosures in WeHo stands at half that of Los Angeles County’s. 
Photo by Ryan Gierach. |
By taking a ten week sampling of reports, something akin to taking samples from a river as it passes, and comparing that sampling to surrounding area’s reports, staff said they could approximate the severity of the nation’s housing crisis on the city’s residents.
No study focusing on the situation exists for previous years, limiting the ability of staff to make a direct comparison with historic foreclosure rates inside the city.
Fewer than three dozen homes went into foreclosure for certain, according to the study, conducted in early April and based on data available from an Internet foreclosure data provider.
The City gathered data over the ten week period preceding April 8 using RealtyTrac, the only major online foreclosure data provider; they said that the number of foreclosed properties ranged from 32 to 55.
“Of the 32 properties in foreclosure on the study date of April 8, 2008, 5 were single family dwellings and 27 were condominiums,” the report requested by Council in January says.
“Of the 32 properties in foreclosure, 31 owner addresses were the same as the property address, suggesting that nearly all of homes or condominiums in foreclosure are owner-occupied.”
Photo by Ryan Gierach. |
The report noted that most of the properties in “pre-foreclosure” during the study period “progress[ed] into further stages of bank-owned or auction status.”
Eric Scott of WeHo’s Prudential California Realty told WeHoNews, “West Hollywood is a micro-market that isn’t so easily affected by nationwide trends.”
He did say that now could be the best time in decades to buy property.
“If you can get financing or can come up with the down payment,” Mr. Scott said, “it’s your time to buy; prices will only go up from here as financing loosens up.”
Supporting Mr. Scott’s urgings, the staff report says that homes in the state now sell for approximately the same price as they did April 2004, with the median price 20% below last year’s market peak of $505,000.
Furthermore, they say citing the LA Times, county-wide median asking prices have declined while the county’s inventory of unsold houses increased this year.
Photo by Ryan Gierach. |
The foreclosed properties in West Hollywood carry[ied] an average market asking price of $650,000 for condos and $900,000 for single family homes.
No tenant-occupied buildings went into foreclosure, and “very few tenants have contacted the Rent Stabilization and Housing with concerns about possible foreclosure of their dwelling units,” the report says.
The Rent Stabilization Department cautioned anyone from reading too much into the report, however, noting the short sample period and small size of the data set.
As directed in January, the department brought forward the programs the city has already implemented, designed to assist those affected by foreclosure.
The reports states: “Despite the seemingly lower impact of foreclosures in West Hollywood, it is serious for those who are in this situation. They may need access to helpful information and resources.
Photo by Ryan Gierach. |
“The City offers two programs - one to help tenants who may be in foreclosed properties and the other to assist those property owners struggling with a foreclosure.
Outreach to Protect Tenants
Staff is pro-actively identifying properties in foreclosure as early as possible and taking the following steps:
1. Review foreclosure websites and look for situations where there might be tenants.
2. "Letters to lenders" program - if a property is bank-owned, staff mails a letter to the lender informing it that foreclosure is not a cause for eviction for rent stabilized units and that the utilities must be kept connected.
3. In the case of non-rent stabilized rental units and condos, City staff mails a letter to the lender and outlines that, if there is any intention to evict, there must be a 60 day notice and that utilities must be kept connected.
Photo by Ryan Gierach. |
The City of West Hollywood also provides help for tenants through the Rent Stabilization Coordinators at city hall or via telephone at (323) 848-6450.
If a tenant is having an issue about utilities being disconnected, staff will contact the lender (who is the current property owner) to make certain that the lender is aware to keep the utilities on and not to evict the tenants.
Tenants occupying units in multi-family buildings may not be evicted for foreclosure.
Tenants living on single unit properties or in condominiums that have been purchased in foreclosure sales may be relocated.
They are, however, entitled to a 60-day notice and relocation fees ranging from $5,100 to $1 7,000, depending on the household socio-economic status
Photo by Ryan Gierach. |
. The landlord must commence the eviction process within 30 days after perfecting title under the foreclosure sale and the tenancy had to have commenced after the foreclosed-upon mortgage was recorded.
Outreach to Property Owners in Foreclosure
There is a link on the city's website www.weho.org/foreclosure to obtain help for those worried about foreclosure.
Also, the reports says, "HOPE NOW," a public/private partnership among mortgage counselors, servicers, investors, and lenders, maximizes outreach efforts and provides professional counseling to struggling homeowners and to help homeowners refinance into a new mortgage or receive a modification.
Printer-friendly
E-mail to friend
