The Ideal New Year's Resolution: A Living Trust

As most of you know, I was married in August. One of the first things Steve and I did is to update our joint Living Trust document, Wills, Powers of Attorney and Advanced Medical Directives, and update the vesting of our real estate.

I am passionate about utilizing Living Trusts, especially here in California…for anyone who owns a home or has children. Here are some of the things to consider:

1. Appoint short-term and long-term guardians for any minor children.

2. Review the title of your home to make sure it is vested properly; Either in your Trust, OR in Community Property with Rights of Survivorship, if you are married and don't have a trust.

3. Make sure you know where all important documents are located; whether your life insurance policy is up-to-date and has proper beneficiary designations, and whether any joint tenant property (bank/investment accounts) or other "transfer on death" type of assets are up-to-date.

4. Leave medical instructions, written down, for your family, on what to do if you are incapacitated.

5. Appoint someone to make both medical and financial decisions on your behalf, if you were to be incapacitated. (Medical Directive and Power of Attorney)

6. And last, but certainly not least, have legal instruments on how to properly distribute both personal and real property, and who will be charged with making those decisions. (Trustee if held in Trust, or Executor of your Estate if you are using only a Will)

An experienced Estate Planning attorney will be able to discuss the above items and help you to make the decision that is best for both you and your family. I would be happy to refer you to an attorney to assist you in this endeavor and provide you with peace of mind in the coming year. I promise you that is is far less costly to create a trust vs. using just a Will, or dying intestate. (without a will) Probate is costly and takes a long time, and a judge has to approve everything that is dispersed.

Happy New Year to all, and please make this a priority!

Karen

My Holiday Event Picks - All Around SoCal

BOAT PARADES:

Dana Point Harbor Boat Parade of Lights, December 11th, 12th, 18th and 19th – 7:30 p.m.

Huntington Harbor Boat Parade and Philharmonic Cruise of Lights, December 12th and 13th, 5:15 p.m.

Marina del Rey Holiday Boat Parade, Saturday December 12th - 5:55 fireworks and Parade is 6:00 to 8:00 p.m.

Channel Islands Harbor Parade of Lights, Saturday December 12th – 7:00 p.m.

Newport Beach Christmas Boat Parade and Ring of Lights, December 16th – 20th 6:30 p.m.

Ventura Harbor Holiday Parade of Lights & fireworks, Friday December 18th and Saturday the 19th – 6:30 p.m.

King Harbor Holiday Boat Parade, December 12th 3:00 p.m. Concert and 5:45 boat parade

Oceanside Harbor Parade of Lights, December 12th

Mission Bay Christmas Boat Parade of lights, December 12th

Port of San Diego Bay Parade of Lights, December 13th and 20th, 5:30 p.m.

CULTURAL EVENTS:

Westlake Village Symphony Christmas Concert, Friday December 4th - 8:00 p.m.

The Nutcracker, Dolby Theatre in Hollywood, December 12th and 13th

A Christmas Carol, South Coast Repertory Theater, through December 27th

Handel’s Messiah, Segerstrom Concert Hall, December 6th

A Child’s Christmas in Wales, Camino Real Playhouse, through December 20th

The Nutcracker, ABT at the Orange County Performing Arts Center, December 10th – 20th

A Swingin’ Christmas: The Count Basie Orchestra, Disney Concert Hall December 21st – 8:00 p.m.

Tis the Season, Pacific Chorale at OCPAC, December 20th and 21st

OTHER FUN FAMILY STUFF!

Palm Springs Festival of Lights Parade, December 5th – 5:45 p.m.

Corona Del Mar Christmas Walk, December 6th – 11:00 a.m. to 4:00 pm.

Santa Barbara Zoo -- Open on December 25th –!

Pershing Square Ice Rink with DJ’s, December through January 18th

Chanuka Festival, Ventura Harbor Village, Sunday December 13th – 2:00 p.m.

Janss Marketplace Holiday lights and Music Spectacular, December 11th to 24th – 6:00 to 8:00 p.m.

Venice Canals Holiday Lights Tour, December 15th to January 4th – 2:00 to 5:30 p.m.

LA Zoo Lights, including reindeer, at the LA Zoo, December through January 3rd, 6:00 to 10:00 p.m.

Griffith Park Holiday Light Festival Train Ride, Month of December, 5:00 to 9:00

San Diego Botanic Garden of Lights, December 26th – 30th, 5:00 to 9:00

Sawdust Festival Winter Fantasy, Laguna Beach, weekends through December 20th, 10:00 a.m. through 6:00 p.m.

Irvine Park Railroad Christmas Train with Santa, through December 23rd, www.irvineparkrailroad.com

Great Dry Land Yacht Parade, Villa Park, December 13th 5:00 to 7:00 p.m.

This is a photo in downtown Dallas at the Klyde Warren Park, with Museum Tower in the background, from last December.

I am wishing you all a fabulous holiday season filled with fun and family!

Will You Need an ARK this Rainy Season?

Protect your home in case of flooding. If you don't already have flood insurance, you don't live in a Federal Flood Zone per the FEMA maps. But, you can still purchase flood insurance...and for much less than if you DID live in a Flood Zone.

Flood insurance protects you from ground water that enters and/or damages your home. And this winter may be the year you need it, if we do receive torrential rain as the El Nino prognosticators are predicting.

I purchased a flood policy for my rental property in Orange since it has flooded twice in the past during heavy rains. And, I am purchasing a policy for my home in Dana Point as well, just in case. I feel the extra cost is well worth it in case of damage to either of the structures and their contents.

If you need an agent I highly recommend Jon Firey of Firey and Associates, located in Laguna Hills. Jon has handled my insurance for years as well as many of my clients, who all speak highly of him. His website is www.Fireyinsurance.com and his phone is 949-542-7222.

Keep safe and dry and don't delay, since flood insurance does not take effect for 30 days after putting a policy in place.

New Mortgage Guidelines Take Effect; Football Season in the Heat of Summer!

RATES:

Interest rates have been fairly stable this year with some ups and downs but we still see very attractive rates in the low to mid-4’s with no points. The Fed keeps telling us they are going to raise rates by Year-End. We’ll see. That was the party line last year. It has been a great year for homeowners in terms of rising property values, especially in most parts of California. This has made it easier for many to refinance.
The purchase market was a bit slow this summer, likely due to the high temperatures in SoCal. We expect a brisk fall once things cool down.

TRID: (TILA-RESPA Integrated Disclosure)

Effective October 3rd new regulations went into effect which will cause some temporary waves in the closing process--meaning borrowers are going to have to be even more patient with the process and its extended time frame. The Good Faith Estimate and Truth-in-lending forms, along with the HUD closing statement have been eliminated. The new initial loan disclosure form is the Loan Estimate and will include all costs associated with the transaction. The new closing form called the Closing Disclosure will include all closing costs and must be received by the buyer/borrower three business days prior to closing. And nothing can change on it, or a new 3-day waiting period begins again. Know I'm here to help you through this new loan process which can be frustrating. It should be fun!

FAMILY NEWS:

Our Christmas was especially fun with a house full of (adult) children, lots of music and games. We think it was our best ever! This coming holiday season will be more quiet with many of the family alternating to other family locales. Sigh!

We welcomed my second grandchild, Miss Poppy Lou Card , into the world on January 2nd. She is growing fast and looks to be prepping to outgrow her big brother Theo, who will turn three in December. Watch out! I’ve had a grand time babysitting Theo for a couple of overnights this year, but I will say I am exhausted afterwards! This is why children are born to the young. 

Steve and I married (finally!) on August 8th in Lake Tahoe. Just prior to our big day, we took the entire family up to Rock Creek in the Eastern High Sierra for four days, where we were joined by my sister Katie to say goodbye to my mother and spread her ashes with those of my father.

We did lots of hiking and fishing, and had great card games at night...all 16 of us in four rental cabins. www.rockcreeklakesresort.com Then we set off for Lake Tahoe where we stayed four nights in a huge historic home on the North Shore, on Speedboat Beach. There we hosted a small party to witness our vows and celebrate with us. It was a great evening full of fun and dancing-- of course.

My youngest son Kenny started a PhD program at UCLA in September, in Urban Planning. He is living in Hollywood with his partner Moselle. We are thrilled to have him back in Southern California. Only one more to go!

TRAVEL:

I’ve visited Dallas a number of times with Steve; Museum Tower continues to impress and sales are moving briskly. Steve and I visited my daughter Katie and her husband Paul in Ann Arbor during the summer and rented a pontoon boat, hiked in National parks and listened to great music at their outdoor music festival.

In May Steve and I flew down to Cabo San Lucas for a trip with our dear friends Cynthia and Bill. We stayed in San Jose del Cabo for two nights, to attend their Art Walk, and thoroughly enjoyed ourselves. Friday evening we had dinner at Flora Farms. Outstanding. Steve wants them to open a restaurant closer to us. Please! www.flora-farms.com

Next we drove to the village of Cabo Pulmo for a week, where we dove daily on their reef system. This park offers an abundance of fish and wildlife. Great diving! www.cabopulmo.com We stayed in a beachfront home with fabulous views where Steve would paint in the afternoon.

It was a very quiet and relaxing trip…except for the rather large cockroaches, and the scorpion I stepped on. We were living wild! The boys went fishing one day and brought home some great fresh fish we feasted on for days. They have great snorkeling on the reef close to shore, although it was a bit windy when we were there.

Finally, we just returned from a weekend in Lompoc for a wedding. We stayed in a rented home with our sons Drew and Kenny, Drew’s wife MaryGrace, and my grandchildren Theo and Poppy. We had an absolute blast. Lots of hamburgers and laughs! The wedding was held at the Jalama Canon Ranch and was a stunning setting under old oak trees.

The drive out to Jalama Beach is long and windy, but well worth it to see. Go to www.sbparks.org/reservations for camping or cabin reservations. The Jalama Beach Store and Grill is famous for its hamburgers. Hence all the burgers we had on this trip.

YACHT CLUB

We have spent a lot of time this year dining and playing at the Dana Point Yacht Club. www.dpyc.org Our new friends are all adventurous and interesting. It is a great place with fabulous food, views and parties. Great fun for all!

IN MEMORIAM

I lost my dear friend Susan Green on Labor Day. We did lots of traveling together over the years, shared all kinds of adventures, and worked together as well. It is still a fresh loss to me. Lucky for me, she attended our wedding but fell ill after she returned home. I have plenty of marvelous and funny memories of her. And I know she will always be with me.

We also lost our beloved cat Bagheera who was age 17. He is still missed.

Happy Fall to all! Remember to live life to its fullest every day! And, Go Trojans! Find a new coach quick!

Karen

FALL MORTGAGE UPDATES AND TRAVEL NEWS

RATES: We started out 2014 with the highest rates we’ve seen in years, and then hit the lows of the year at the end of May. Since then mortgage rates have continued to exhibit some volatility but within a fairly narrow range. We are still looking at rates in the low to mid-4’s --and no points-- for most loans. Shorter term loans and ARMs are still in the 3’s…of course rental properties and higher loan-to-values loans still command higher rates.
Home values seem to have leveled off and even dropped in some locations. That makes this is a great time to buy! Market activity slows anyway this time of year, so better than ever for buyers to take advantage of the softening home prices and still comparatively low rates.

JUMBOS: Some very interesting developments in the last few months have included LOWER rates for jumbo sized loans over $625,500 (the conforming jumbo loan limit) and announcements about new jumbo reverse loans for homes valued over $700,000 with loan amounts up to $2,000,000. This is big news because we know that the majority of Americans have most of their savings in their home. In California with higher home values the FHA reverse products are limited to a max of $625,500 and oftentimes aren’t enough to pay off a current lien. These new jumbo reverse loans are ”proprietary,” meaning they are private and not government loans. So , no mortgage insurance and, they offer fixed rates!

REVERSES:
I am a big believer in reverse mortgages for some seniors. I had placed one on my mother’s home, and it was instrumental in enabling her to remain in her home with caregiver assistance, until she passed away. We paid off the reverse loan, and now hold the home as an investment property. So, the heirs have many options to pay off the reverse, or sell the property and retain the equity.

TRAVEL AND SUMMER:

CATALINA-

I had a weekend girl’s trip to celebrate two birthdays (BIG ones!) in May. We hit the weather perfectly, enjoyed some great meals out, and had a great time at the Descanso Beach Club. The Club is located walking distance from town, and offers a bar/restaurant as well as private seating on lounges, and cabanas. They have expert masseuses on-site as well as other activities like the zip-line and climbing wall. Although the beach is rocky, swimming and snorkeling are a blast for all ages. We stayed at Hamilton Cove with Killer views of the coastline. Every time I stay here I feel as though I’m in a Mediterranean resort. We lunched at the Bluewater Avalon www.bluewatergrill.com on the harbor, and dined at Steve’s Steakhouse www.stevessteakhouse.com and the Avalon Grille. Of course we had a drink (or two) at Luau Larry’s while we were at it. Always a hoot, especially with the funny straw hats they hand out!

Our last afternoon we stopped at CC Gallagher www.ccgallagher.com on the way back to the ferry, and discovered a killer red wine called Troublemaker. We are still enjoying it, a lovely red blend with Syrah, Zin and another unpronounceable red grape.

Cozumel & Scuba Diving
Steve and I took a week off to dive in Cozumel at the end of June. I had been once, ten years ago, and before I was certified, but Steve hadn’t been there for something like 25 years… so it was all new to us. We stayed at a large “resort” with a couple of pools, restaurants, disco etc…and a lot of people along with some fascinating iguanas.

I wouldn’t recommend the resort, although the food was great and the bars served great drinks! It just didn’t feel authentic to us. And, the worst thing was that the disco didn’t get going until after 10:00 and when you dive, you just can’t stay up that late! YIKES! I guess I’m getting old! Anyway, the diving was pretty awful too. We realized we’ve been completely spoiled by small resorts catering to divers with nice boats (hmm like CocoView on Roatan, Bohio on Grand Turk and the Little Cayman resort). We won’t be going back soon, at least not to the Occidental. The diving was scary, since the currents were pretty crazy and STRONG, and one day we lost one of our divers on our boat. No kidding. But, we found him about 200 yards away.
During some of the dives, I felt a little like superman literally flying over the coral reefs. Not the usual way to view life under water! Conditions on the dive boats were less than acceptable. Well, I don’t need to belabor this. We did rest on this trip, and Steve painted some new fish. Over and out!

DALLAS

I am such a Dallasite, I can’t believe it. I actually look forward to visiting, and being wined and dined in the evenings. They have more restaurants per capita than any other metropolitan area in the US. I love to read at the pool at Museum Tower, visit the museums, and of course I get some work in too. Steve had to move condos since the one he occupied sold, so now we are in a new unit. My last visit in June we discovered a new restaurant by Stephan Pyles, www.sansalvaje.com with live music on the patio that we could hear from our place. So, we walked over, danced and thoroughly enjoyed ourselves. The same band, Latin Fire, is going to be playing at a party here this week…maybe a little salsa dancing will be involved!

CALI COAST and SANTA YNEZ WINE TASTING

Next, I met Katie and her friend Rebecca in San Jose after the USA Water Polo Jr. Olympics, where they were coaching their teams from Ann Arbor. First, we drove down the coast on highway one, through Big Sur and stayed two nights in Solvang for easy access to the Santa Ynez Valley. The girls wanted to do some wine tasting! We also made a stop at the Monterey Bay Aquarium which was a blast. Haven’t been there in years! Our favorite winery in Santa Ynez was Foxen Hill www.foxenvinyard.com where we had a picnic of wine and cheese. Just beautiful country! We also visited Zaca Mesa and had some fab wines with dinner at Succulent Café. www.succulentcafe.com The waiter photo-bombed us! He was too funny! Of course we had two bottles with dinner but luckily we walked home. The charcuterie plate was to die for. Our second night we ate at Root 246, www.root-246.com on their outdoor patio, but I have to say we preferred the Succulent Café.

SACRAMENTO
We visited my son Kenny and his girlfriend Moselle in September. He followed Moselle there, and he is working with a lobbying group for affordable housing in California. We had a great time, and some fabulous meals at Ella’s Dining Room www.elladiningroomandbar.com and a tapas restaurant , Aioli Bodega. www.aiolibodega.com Both highly recommended but pricey. We rented bikes on Saturday and toured the downtown area, all along the river and through the college campus and residential areas. I must say I have a new outlook on Sacramento. The downtown is filled with activity, day and night, for people of all ages. We stayed at The Citizen Hotel which is in a historic building a block from the Capitol. On Sunday we rented SUP’s at the college Aquatics center on the American River. What a blast! And, the weather cooperated and was very pleasant!

WATERMAN’S www.watermansharborrestaurantdp.com
We are excited to have a brand new seafood restaurant in the Harbor in Dana Point. Waterman’s is owned by the same group that operates Sunset’s Bar and Grill in Capo Beach, and Stillwater’s in Dana Point. Located on the Harbor with open air patio dining on both floors, it offers great views but even better food. Fish tacos, ceviche, chowder, poke, everything is really tasty. And, they have an oyster bar…don’t miss it! It is adjacent to the Catalina Express pier.

Happy Fall! Go Team! I love football season, even when my team loses.

Milestones, Spring and Wedding Season!

There is so much to report, I don’t know where to begin! Let’s get business out of the way first:

MARKET UPDATE

Rates have been slowly creeping up, but still in an erratic fashion. International events, such as the recent actions of Russia in Ukraine, have had a positive effect on mortgage rates.

For now the overall outlook is positive in terms of Real Estate sales volume, steadily rising values, and mortgage rates still in the mid-4’s for most loans. Of course there are many variables that affect your rate! Some programs have loosened guidelines, and I have even seen hints of bank statements-only programs….but overall we are still working in a very conservative underwriting environment.

MILESTONES

Both Steve and I celebrated BIG birthdays (!) in grand style earlier this year. We had a lovely dinner party at our home for him in January, and hosted family and close friends.

In mid-February we took our entire family (14 in all, including my baby grandson and spouses/partners) to CocoView on Roatan in the Caribbean. www.cocoviewresort.com We had an absolutely marvelous and unforgettable time scuba diving, playing games, snorkeling and just generally relaxing. Our family flew in from Vermont (Ken) Michigan (Katie and Paul) Illinois (Courtney) Sacramento (Moselle) San Jose (David) and the rest of us all from LAX via Houston or Dallas.

You can imagine it was a logistical nightmare---but we all arrived eventually-- and we stayed in three rental homes right on the beach.

We held a ceremony one afternoon to celebrate my late mother Patricia’s life. I can honestly say this trip was the best vacation of my life. It doesn’t get any better!

DALLAS

My birthday was in March, and I had a quick trip to Dallas the week before which was filled with evenings out. I really enjoy the restaurants in Dallas! We had a birthday dinner at Al Biernat’s, an institution in Dallas. www.albiernats.com Our last evening we went to Nick and Sam’s where we were served with complimentary champagne and caviar, for my birthday. Wow! www.nick-sams.com I can’t wait to return in May…it will be nice and warm. The pool at Museum Tower is the absolute most beautiful pool in Downtown with views of the skyline.

FAMILY WEDDING!

My daughter Katie was married April 26th in Palm Springs. All in all, it was a lovely week from beginning to end, and involved non-stop parties and never-ending things to do. Her new husband Paul is from Wisconsin, so there was a large contingent of friends from Wisconsin and Michigan, where they live now, and plenty of locals from SoCal and NorCal. Katie’s bridal party were all athletes from Cal, Michigan and UCLA. Notable guests included Katie’s high school swim coach, her childhood babysitters from our old neighborhood, and lots of new and old friends and relatives who traveled a long distance to witness the event. www.vrbo.com/89766 The reception was held outdoors at the Historic Cree Estate which boasts the largest private pool in the desert (it actually has two pools and a Jacuzzi on-site).

The estate was occupied by most of the wedding party from Friday through Monday. A fun-filled time was had by all! I rented another home, the Sonny and Cher estate, with my sister and stayed there with her kids and Steve’s…we hosted a family event before the wedding. Nice digs! I love VRBO- www.vrbo.com

MUSIC

I attended a fabulous concert in Denver – Justin Timberlake or “JT”, for those of you in the know. I met my sister and daughter in Denver, where we were joined by my niece --who attends the University of Colorado, Boulder. We stayed at a “Hip” hotel walking distance to the concert. www.thecurtis.com Unfortunately when we left the venue after the concert, it was near blizzard conditions, so we couldn’t walk back, and had to fight over a car to get back. However my sister is very persistent, and convinced a cabbie he HAD to take us! We all lived to tell the tale!

I hadn’t been in Denver for years and the downtown is experiencing a resurgence of new restaurants, wine bars, galleries, etc. All in all, the 20/20 Experience concert was the best I can remember ever, and I love concerts! Do see it if you have the chance. The sheer variety of genres JT can handle is amazing, and his dancing had me trying the same moves on the way home (not a good idea in the snow!!!)

Life is great and I feel very lucky! Here I am with my two handsome sons. Next up: Cozumel in June...
Take Care!

HAPPY NEW YEAR

As I write this the end of 2013 is here. This year has brought about many changes and I’d like to update you on those affecting the Mortgage business, as well as my personal updates.

The State of Mortgage Lending

Rates fluctuated up and down within a fairly narrow range all year, but were steadily rising since May. We now see most mortgage rates in the mid-to high 4’s depending on loan term, loan amount, and property occupancy.
The biggest change coming up for 2014 is the new requirements vis-à-vis Frank Dodd for “Qualified Mortgages” which are loans with specific characteristics leading to a high probability of payback. Meaning, goodbye to most interest-only loans and hello to strict income qualifying ratios, and fully amortizing loans.

Purchase business continued to pick up this year in the face of rising home values and still relatively low interest rates. Next year should prove to show us more of the same, with rates steadily rising.

The Family

Steve and I bought a home in September, in Dana Point. We have a nice ocean view from the hills above Dana Point Harbor. We moved into the home in October after painting and installing new flooring (www.MacFlooringServices.com) but we still have a lot to do, to include Kitchen and bathroom upgrades. My friends tell me Rome wasn’t built in a day and it will just take time! We’ve had fun buying new (and some consignment) furniture. My favorite is our Restoration Hardware dining table of salvaged boatwood. It’s different!

Unfortunately we also lost my mother in October after a prolonged illness. At the age of 88, she had a long and full life and is dearly missed. She was my best friend, and best sounding board for many many years. Sort of encyclopedic, she was a great source of information. I’ve been receiving her New Yorker Magazine and now I know how she kept up on so much! She read voraciously and was in the middle of one of Proust’s novels.

Happier notes:

My son Kenny is working at his Alma Mater Marlboro College in Vermont as an Admissions Counselor and enjoying his work which allows him some travel (yes even here to the West Coast) on recruiting trips. We got to see him here in mid-October.

My daughter Katie and her Paul are planning their wedding in April in Palm Springs which will involve a mass exodus for many of his relatives (over 150) from Wisconsin. It should be a great party and beautiful wedding. She continues to coach water polo at a local high school and for her own club, and is now teaching Barre classes at the local Pure Barre.

Last but not least, my eldest son Drew had a great season of fishing this year on his sport fisher The Pacific Queen, www.pacific-queen.com and currently has his boat in dry dock in Ventura for winter repairs. He and Mary Grace are very busy with their my grandson Theo, who turned one on December 16th. What a charmer he is!

Thanksgiving was quiet since all our kids were celebrating elsewhere. We had a quiet evening at my favorite Wine Bistro. www.winebistrodp.com We were joined by Steve’s sister Kerry and her husband Chuck.

DALLAS

Steve and I were in Dallas over Halloween, and also had a fun trip to Dallas for his office Christmas party this month. I was prepared for the worst in terms of weather, but it was actually warm – in the 70’s – and lovely during my visit. I was able to complete my dreaded continuing education on mortgage fraud and regulations, so all in all it was a very successful trip. Dinners out included CBD Provisions, the new restaurant in The Joule www.thejouledallas.com where we enjoyed a pig’s head(!) Hmmm, not sure I’d recommend it for the faint of heart…or stomach! It was interesting…

We also enjoyed a great meal at Nick and Sam’s in Uptown. I had their foie gras, which is now illegal in California, but happily readily available in Texas. www.nick-sams.com This is a quintessential Uptown steakhouse with a great bar and chef. I bumped into some out of town visitors – well, they bumped into me, and I knew they weren’t from Dallas since they didn’t apologize. It’s true! Dallasites are extremely polite people! All in all a wonderful time. Here is the view from Steve’s condo:

I wish all of you a fabulous NEW YEAR!