Homes of the future

The annual Consumer Electronics Show (CES) recently wrapped up in Las Vegas, and one idea creating a big buzz was “The Connected Home.” This isn’t a particularly new idea, and it has been talked about for years at CES, but it appears as if the technology is finally catching up with the idea, and having your very own connected home is not so very far away.

These new technologies, which include such devices as voice-controlled thermostats, toothbrushes that can tell you whether or not you’re doing a good job on your teeth, and refrigerators that play music are part of a new world of web-connected devices dubbed “The Internet of Things.”

According to the Gartner research firm, by 2020, the Internet of Things will include 26 billion devices, with a market worth of $1.9 trillion.

What can the Internet of Things do for your home? Will these new devices enable your bed to make itself and leave a chocolate on your pillow? Not quite, but some of the new features are pretty handy. Here’s a roundup of some of the new and upcoming products featured at CES, to give you a better idea of what a home of the future will look like. 

Connected Appliances
A Bluetooth-enable refrigerator that allows you to listen to music in your kitchen? A washer/dryer that can be commanded to clean from afar? These are two of the new “connected home” products featured at CES.

Whirlpool® debuted a line of Smart Appliances that give you the option of checking to see that everything is running smoothly at home, even when you’re far away. There is a washer/dryer pair called the “Duet.” You can monitor energy usage and access certain settings when you’re out, but you can’t get it to suck the laundry from the floor and wash it while you’re gone. Each one runs you approximately $1,700.

The refrigerator keeps you up-to-date on temperature settings, and power outages and allows you to manage other features such as your drinking water. This retails for about $2,000.

The $949 smart dishwasher, allows you to monitor energy use and lets you know when certain parts need replacing. 

Samsung is another player in the smart home arena. The company’s platform, called "Samsung Smart Home," debuted at CES and the roll-out along with pricing is planned during the first half of the year.

The initial platform consists of three main services: Device Control, Home View, and Smart Customer Service. With Device Control you can access customized settings for all of your devices from your smartphone—while you’re out of the house—or on your Smart TV when you’re at home. You have the ability to control multiple devices at once, no matter how far you travel. The service will also allow you to use voice commands with your Galaxy Gear or Smart TV remote. You can tell your device that you're "going out," for example, and your connected lights and appliances of choice will turn off as you leave. Smart!

Robotic Vacuums
Robotic vacuums are nothing new, but now they are getting more affordable. Neato Robotics already has a robotic vacuum, but this year they’re launching one that’s more affordable to the masses. In March, you’ll be able to pick up the Neato XV Essential for $379 at Walmart.com

The iRobot Roomba has a new version out as well. It boasts 60 percent more storage space and greater cleaning capacity than the former version and retails for $699.

The company also makes a robotic pool cleaner!

A Smart Crockpot?
It doesn’t get much better than this. A slow cooker that you can control from your smart phone, so your pork ribs are falling perfectly off the bone by the time you arrive home. This is a product from Belkin that launches sometime this spring and is set to retail for $99.99.

Control Your Climate & Beyond
Trane, Herman Miller, and Nest are a sampling of companies who want to help you control the climate of your home from afar. These devices not only adjust your temperature, but look better on your wall than their old counterparts. 

Nest also made the recent leap to the connected smoke detector. The sleek, round-edged square has a pale blue light glowing at its center which acts as a motion detector night light, to help guide your way through a dark hallway. This smart smoke alarm will also alert you to any smoke or fire problems at home when you’re not there. 

A Smart Toothbrush?
The perfect gift for your kids. Now you can see if they actually brushed their teeth and if they did a thorough job! The Kolibree toothbrush claims to be the first “connected toothbrush” that improves your brushing habits. Not only does it track how often your brush your teeth (or not), it claims to know what parts of your mouth you missed or didn’t pay enough attention to.

Wifi Lightbulbs
Controlling your lights while away is another feature of the connected home. Forgot to turn on lights to scare away the burglars? Not a problem. Do it with your smartphone. 

An Intelligent Lock
Another connected home feature of note at CES was the Goji Smartlock. The lock takes a picture of visitors at your front door and can be accessed via your smartphone.

Staging your home for a faster sale, and higher price!

Fran Freedman took down the family photos and most of her artwork. She had the fence in the front yard ripped out, and she got rid of half the clothes in her closet. And that was just for starters. She wasn't redecorating. Rather, she was "staging" her house for a potential home buyer.

With 3.75 million homes on the market — a 7.3-month supply — sellers must work harder these days to attract buyers. Yet oddly enough, the trick to making your home stand out is often to make both the interior and exterior look generic, almost bland. And that's where home staging comes in.

"The philosophy is the buyer must be able to picture themselves living in your home," says Freedman, 65, a lawyer in Philadelphia. "They don't want to see your family photos and your artwork. The décor should be understated so they can say, 'This would be the perfect place for my...' "

Does it work? When Coldwell Banker Residential Brokerage in Los Altos, Calif., looked at nearly 2,800 properties in eight U.S. cities in 2004, they found that the staged homes, on average, sold in half the time that the non-staged homes did. The sellers with staged homes ended up with 6.3% more than their asking price, on average, while sellers with non-staged homes sold for 1.6% more than the asking price.

The cost of hiring a company to stage your home tends to range from $1,800 to $3,800 but can go much higher, depending on the size of the house and the amount of work involved.

Freedman says Tailored Transitions, the company she used, "had a hard time convincing me and my husband to spend the money. People don't spend money on this kind of thing. I'd never heard of staging."

In the end, they spent $2,500 for the interior, $4,000 for the exterior, $500 to rent "props" like less eye-catching artwork and decorative pillows and $500 to move their excess furniture and boxes into storage. In hindsight, she says, it was worth every dime.

They listed their home this month for $949,000, and Freedman says, "I don't know if we would have priced it that high when it wasn't so attractive."

Judee von Seldeneck put her staged home in Philadelphia on the market this month; it sold in one day, for $700,000.

From moving shrubs to planting flowers, to replacing the knobs on kitchen cabinets and ripping up the carpet on the stairs, every change was made to accentuate the house's best features. There were even pumpkins on the porch to lend a homey, inviting look.

Inside, the stagers "put furniture that looked comfortable but not too heavy, not cluttered," says von Seldeneck, CEO of an executive search firm, who's "in my 60s." The books on shelves, colors of the rug, the furniture — all were "geared more toward younger people."

She spent $8,000 on the job and says, "It was the best money I ever spent."

Short of hiring a company to do the work, there are some simple steps any seller can take to stage a home:

•Cleaning. The house should be Q-tip clean. Every surface should sparkle; every groove should be dirt-free. And above all, wash the windows.

•Clutter. Pack up family photos, stacks of paper, medicines on the bathroom counter, the books overflowing the bookcase. Hide trash cans, ashtrays, the laundry hamper, the kitchen sponge, the cat's litter box and food dishes.

"Clutter eats equity," says Barb Schwarz, the self-proclaimed inventor of home staging and author of Home Staging: The Winning Way to Sell Your House for More Money.

•Color. Dark walls make the house look smaller. Walls should be off-white, or have earthy tones if the room has lots of light. Ideally, the carpet would be "real estate beige." Open or take down the curtains, so the rooms will have as much light as possible. Leave on the lights in darker areas.

•Focal point. To think like a professional stager, stand at the doorway of each room. What features do you want to accentuate? Where's the focal point? (A room should have only one.) So if you have a fireplace and a big-screen TV, take out the TV. Arrange the furniture so the eye is drawn to the focal point.

•Furniture. Most rooms have too much furniture, which makes rooms look smaller. Reduce the number of pillows on the couch to zero, or have an odd number like three. Remove afghans and blankets. Reduce the number of paintings on the walls.

•Dining room. Take out the leaves from your dining table and put no more than four chairs around it. Set the table as if for a meal, and put an appealing centerpiece in the middle. Reduce the number of dishes in the china cabinet, leaving only a few.

•Kitchen. The exterior of the refrigerator should be bare. Store any appliances you don't use daily out of sight. Hide the trash can, and put the sponge and soap under the sink. You can spruce up an outdated kitchen simply by changing the knobs and hinges.

•Master bedroom. Buy a new bedspread, if necessary. Clear off bedside tables and chests of drawers. Hide the alarm clock. For the closets, pack up any clothing you're not using this season. It'll make the space look larger.

•Bathroom. Replace bar soap with liquid. Coordinate all towels using one or two colors. Fold them in thirds and hang them neatly. Clear everything out of the shower except for one bottle of liquid soap and one bottle of shampoo. Clean or replace the shower curtain. Make sure all grout is clean and in good condition. Remove all cloth toilet lid covers, and keep the lid down. Hide the trash can.

•Outside. Keep the lawn mowed and the edges neat. Trim shrubs, especially around windows. Put flowering plants near the front door. Does the house need painting? Consider painting or staining the front door; it's one of the least expensive ways to spruce up the entry. If there's furniture on the porch, make sure it isn't plastic but rather good wicker or wrought iron. Power-wash or stain the deck. Remove or hide old cans and bottles, auto parts, boats and RVs.

"When you start staging your house, emotionally, you need to say goodbye to your house," says Starr Osborne, CEO of Tailored Transitions in Philadelphia, the staging firm Freedman hired. "It's like hotel living. It's not a comfortable experience, but your home will sell more quickly and for better money."

The de-cluttering process is "one of the biggest challenges we find," she says. "Sellers feel it's an indictment of the way they live. You have to remember what you're selling. You're not selling your taste; you're selling tastes the buyer wants to see."

Freedman recalls it was "kind of traumatic" when all her family photos were packed away. Another tough moment was when she stood in front of her closet, wondering what she could throw out.

But in the end, Freedman says, the process was "cathartic." "It made us realize we had too much," she says. "When we move, we won't use it all."

Decorating for the senses

When starting a new decorating project, the big decisions are mostly about how the results will look. And the visuals of a room or house are important. But another big part of how a space feels to us is how we perceive it with our other senses. Think of how a luxuriously soft throw tossed across a worn leather chair makes a reading spot seem extra appealing or how the background scent of eucalyptus makes a spa seem clean and calming. Keeping all the senses in mind when making decorating choices will create spaces that feel more inviting and are a pleasure to inhabit. Here are some ideas:

Taste
Decorating for the sense of taste is all about implication—creating a space where food is enjoyed and celebrated. Make sure your house facilitates easy, communal eating by assessing your dining spaces. Is your table large enough for extra guests and durable enough to handle inevitable food and drink spills? Do sitting areas have handy spots for people to set drinks upon? Do you have room for an outdoor dining space? Other ideas: create a window sill garden with herbs, tiny hot peppers or tomatoes or a lettuce mix for cutting fresh mesclun. Plant a fruit tree that's visible from the kitchen or living room window. Set a warm pot of fragrant herbal tea on a guest's night table at bedtime. And don't forget the time-tested standby—a bowl full of seasonal fresh fruit.

Smell
When appealing to the sense of smell, subtlety is key. Try incorporating the outdoors by using the fresh scents of nature. Hang a eucalyptus cutting on a shower head to release a fresh, clean scent with every steamy shower. Plant a fragrant bush like honeysuckle, rose, or gardenia under a bedroom window to wake up the scent of flowers wafting in. Put a lavender plant in a bedroom or bathroom. Plant a rosemary shrub by the front door—whenever someone brushes by it, it will release its piney scent. Go seasonal with outdoor scents, bringing pine boughs in during December or fresh flowers in spring. Cedar blocks or shelves in a closet smell pleasantly old-fashioned and keep moths away too. Toss scented pine cones into the fire on wintry nights. Or just open a window and let a fresh breeze drift in.

Sight
Whether your taste is classic, mid-century modern or eclectic, there are certain visual rules that apply for all styles: Create a focal point in each space. Use harmonious colors for calm and high contrast for excitement. Group like things together and display objects in odd numbers. Allow for plenty of clear spaces on table tops and other surfaces for the eye to rest. Use a variety of light sources, including natural lighting and task lighting, and incorporate candlelight and light from a fireplace. For a cost-free makeover, walk through the room looking at everything as though seeing it for the first time. Purge art and objects that no longer suit you and rearrange furniture to engage with the space in a fresh way.

Touch
Engage the sense of touch with contrasts. Contrast crisp sheets with a soft warm comforter and big puffy pillows. Set off the smooth tiles of a bathroom with oversized fluffy towel or drape a luxe silky throw over a modernist chair. Add things that can be touched and look fun to touch, like a worn handmade wooden table, a curvy piece of sculpture, or a nubby throw pillow. Think about what flooring would feel best under your feet—the cool minimalist feel of tile or polished cement or the cushy warmth of carpet with thick padding underneath? When putting in new fixtures like door knobs, faucet handles and light switches, consider their feel. Do they move smoothly? Do they have a nice weight to them and feel good in your hand? Consider investing in luxurious items like heated towel racks, a premium showerhead, heated floors, or a quiet ceiling fan to bring in a cool breeze.

Sound
Appealing to the sense of sound is not only about emphasizing pleasant sounds but de-emphasizing or eliminating unpleasant sounds. The most obvious way to bring sound into a space is with music, but other ways include adding water feature, bamboo wind chimes or even just opening a window to bring in the sounds of the outdoors. Run a fan or white noise machine at night to create a peaceful sleeping space and install double-paned windows to mask traffic noises. Soften the sound of large open rooms with textiles and cork flooring. And don't forget ambient noise: oil squeaky doors, fix rattling appliances, knocking pipes, and creaky stairs.

Ways to Invest in Real Estate

If you’re looking to diversify your investments, real estate can be a lucrative venture. There are several ways you can dip your toes into real estate investment waters. Take a look at the categories below to see if one of them is right for you.

Real Estate Investment Groups

If you want to invest in rental properties but don’t want to deal with the day-to-day obligations of being a landlord, real estate investment groups are a great option. A company buys or builds apartments and allows investors to hold the lease on one or more units, while they handle the basics. The company receives a portion of each month’s rent in exchange for its services. Lease holders also typically contribute a percentage of rent to a pool that covers vacancies, providing payment even if the unit stands empty for a month or two.

Be sure to thoroughly research the groups you’re considering. Investment groups are usually safe, but it all depends on who you’re doing business with.

Standard Rentals

Rental properties can cover mortgage payments when tenants are in residence, which then turns to profit once the debt is paid off. Unless you hire a property manager, you’ll be responsible for any maintenance. Figure on spending around 50 percent of your monthly income to keep the property in top shape. 

Property can appreciate between the time of purchase and the final mortgage payment, netting you a tidy profit if the market is right. Work with an area realtor to determine the best time and location to buy and sell.

Real Estate Investment Trusts

REITs are a step further removed from first-hand ownership than investment groups. Around 200 are publicly traded, and their financial records can be easily researched as a result. Trusts or corporations purchase rental properties with investor funds and are required to pay out 90 percent of the taxable profits in dividends. REIT investments provide regular income and are easily liquidated, but you’ll need to do your homework to ensure your investment is sound.

Real Estate Trading

Real estate trading is property investment on steroids. Similar to stock market day trading, it can be both risky and rewarding. Investors hold properties for a 3-4 month period, and then ideally sell for a profit. Real estate traders gamble on undervalued properties and hot commodities to “flip” the investments they’ve made.

If a trader makes the right picks, there’s a lot of money to be made, but one wrong move can send it all crashing down. Because the properties are not held for long periods, most investors don’t keep cash on hand to pay mortgages for extended periods of time, and may have cash tied up in multiple properties.

There’s a less risky way to flip properties, but it is more labor intensive. These investors live in a home while they improve it, and then sell it for a higher price once the renovations are made. Although only one property at a time is typically flipped, there is significantly less risk of failure.

Several methods of real estate investment exist, all with varying levels of risk, reward and involvement. Research your chosen method and the companies involved to make the decision that’s right for your portfolio.

20 Tips to Consider before you Invest in a Swimming Pool

1. Create a wish list.

You may have been dreaming of a swimming pool for years, and you may think you know exactly what you want. But it pays to read up on the latest technology and gather ideas. Once you’ve done a little homework, you’ll be ready to speak to your pool builder about what it is you want out of a swimming pool. He’ll be able to help you crystallize how you plan to use the swimming pool and can suggest styles, materials, designs, and blueprints to make your dream a reality.

2. Create a look book.

It’s often difficult to put your ideas into words. Pool builders and designers appreciate when customers come to them with pictures from magazines, our swimming pool photo galleries, or even scenic photos taken on vacation. They give your pool builder a good sense of what you’re interested in and how to incorporate your style preferences into the swimming pool design. It also ensures that you and your builder are on the same page.

3. Research the three types of inground pools.

Sure, that’s what this article is all about, but dig deeper. A swimming pool is an investment, just like a car or a home. You wouldn’t just buy any car on just any lot, would you? The same rules apply. There are many ways to build a swimming pool. Some are made of concrete, others are made of fiberglass, and still others are vinyl. And that’s just the first step. Coping, cleaning systems, filtering systems, artistic finishing touches. The list of variations goes on and on. Getting up to speed will allow you to speak your pool builder’s language and be more confident in the decision-making process.

4. Find a credible pool builder.

Once you’ve made the decision to dive into swimming pool ownership, the best way to ensure a smooth building process is to choose a seasoned swimming pool construction professional. Check with friends, your local and regional pool builders associations, even the Better Business Bureau. Interview several candidates, and ask about their building philosophies. A good pool builder will offer examples of his work, provide references (be sure to check them), and be able to answer relevant questions. You’ll be working with this person for many months, so choose someone you feel comfortable with.

5. Decide what kind of pool shape you want.

Swimming pool design is critical to both the overall aesthetic you’re trying to achieve and what you can actually do in the swimming pool. Rectangular designs are perfect for people wanting a classic, timeless look. They’re also great for games and swimming laps. Kidney and free-form swimming pools can blend with the surrounding vegetation and appear more natural. They also lend themselves to waterfalls and grottos. Choosing the wrong shape may mean you have a swimming pool that doesn’t really suit your lifestyle as well as it could.

6. Consider the weather in your area.

Depending on where you live, the weather can dictate certain pool building decisions. People in colder climates should consider enclosures to prolong the pool season. Those living in wetter climates also enjoy the benefits of enclosures. In temperate climates—places where it never gets overly warm—pool heaters are useful. Windy areas, heavily treed areas, or places cold enough to close swimming pools for the season make swimming pool covers a good idea to stem evaporation, keep leaves and debris at bay, or protect the swimming pool when not in use. Many of these options are just plain good ideas, but your local weather can make them necessities.

7. Know how you want to use your pool.

Stop and think about why you’re installing a swimming pool. Is it for your kids? For entertaining? Is it an investment? Do you want it to make a dramatic architectural statement? Or is a relaxing retreat for you and your spouse? Answering these questions will help tell you what kind of swimming pool you want. A swimming pool for kids might include a slide and a wading area. It probably doesn’t need high-end glass tile finishing or a vanishing edge. But if you want something that is as visually appealing as it is enjoyable to use, you might consider a built-in water feature, more expensive coping, and a negative edge. A client with a clear sense of purpose is a builder’s best friend.

8. Establish a budget.

You probably already know what you’re willing to spend on a new swimming pool, but it’s important to speak with your pool builder to gather more information and get a sense of what your project will cost. Your pool builder will be able to listen to what you want and give you an estimate on what it will cost to make it happen. You may have to adjust your plans, or you may find you have the resources to add to your initial concept. Either way, it’s important that both you and your builder know what your budget is from the start.

9. Consider long-term costs.

Owning a swimming pool is actually quite affordable. Upkeep, especially if you take a few energy-saving steps (more on that below), can literally cost pennies a day. But it’s best to have an idea of what those costs are. Factor in how much water it will take to keep your swimming pool full, cleaning and water maintenance costs, and any accessories (pool covers, filters, toys, etc.) you’ll need to purchase.

10. Check your local building codes.

Yes, your pool builder can help you with this part immensely, but it’s a good idea to know the rules yourself. Some areas require perimeter fences of a certain height. Some require the fences to lock. Others require a fence around only the swimming pool itself. You’ll also want to inquire about building permits, building restrictions, noise policies, and property tax concerns.

11. Don’t forget about insurance.

When establishing a budget, don’t forget to think long term. Contact your insurance carrier and find out if owning a swimming pool affects your homeowner’s policy—no one likes to be surprised.

12. Don’t skimp on the features you really want.

Yes, we told you to stick to your budget (and that’s sound advice), but don’t settle if you can help it. Retrofitting a swimming pool is never as easy as the initial install. So, if you really want that slide or the cascading waterfall over the slab of granite, go for it. If it busts the budget, ask your pool builder where you might be able to save elsewhere. You never want the swimming pool that’s “almost perfect.”

13. Be energy efficient.

It’s easier than ever to save on a swimming pool’s energy costs. Enclosures, pool covers, and pump and lighting timers can all pay for themselves in energy savings in a short amount of time. In cool climates, it can sometimes pay to shut your swimming pool down for the winter, rather than heat it.

14. Be green and eco-friendly.

Some shy away from swimming pools for fear of their environmental impact, but the industry has worked hard in the last few years to make pool owner and steward of the environment not mutually exclusive terms. Today’s pool heaters can be heated almost entirely using solar energy. There are even swimming pools filtered using totally natural methods—an attached pond does all the work—and many chemical water treatments can now be replaced by less harsh natural alternatives. Swimming pool covers also reduce the amount of water lost (and then replaced) due to evaporation.

15. Don’t forget water features.

Elegant waterfalls, spouting sconces, bubbling fountains—people love water features almost as much as the swimming pools themselves. If you’re interested in adding a few jets to your swimming pool, though, it’s best to do it during the initial construction. Retrofitting can be tricky (and sometimes impossible, depending on your swimming pool and what you want done) without a major remodel. It also costs more than twice as much, typically, to install water features after the fact.

16. Plant with purpose.

This is especially important when thinking about your budget. You won’t want that swimming pool sitting in the yard by itself, so consider what you’d like to plant and where. Avoid planting messy trees (pecans, gums, sycamores) or trees with far-reaching, shallow root systems (some oaks, birches, cypress) near your swimming pool, for instance. Instead go with bushy perennials that don’t grow as tall and can be moved if necessary.

17. Keep safety in mind.

Beyond any required fencing your local codes require, consider what other safety measures you’ll want to have in place. Swimming pools can be equipped with alarms to alert you when someone or something enters the water. Child-proof locks on gates, and security alarms on windows to the backyard are also considerations.

18. Think about finishing touches.

Things like coping, decking, and borders can make a swimming pool stand out. The materials used for each vary—stone, concrete, ceramic and glass tile—and each has its own advantages and disadvantages. Discuss with you designer which options are right for you.

19. Put fun on the list.

As the swimming pool nears completion, it’s time to enjoy yourself by gathering all those extras that make pool ownership fun. Toys, games, floats, swimsuits, patio furniture, you name it. Accessorizing is half the fun.

20. Plan your first pool party!

Don’t forget to throw a big bash to celebrate your new swimming pool. Get the burgers on the grill, invite the kids’ friends (and a few of your own) over, and break in your swimming pool in style.

 

California Foreclosures Lowest Since 2005

The number of California homes entering the formal foreclosure process last quarter dropped to the lowest level since late 2005, the result of a stronger economy and higher home values, a real estate information service reported.

A total of 17,524 Notices of Default (NoDs) were recorded at county recorders offices during the April-through-June period. That was down 8.8 percent from 19,215 in the prior quarter, and down 31.9 percent from 25,747 in second-quarter 2013, according to DataQuick, which is owned by Irvine-based CoreLogic, a leading global property information, analytics and data-enabled services provider.

Last quarter's NoD tally was the lowest since fourth-quarter 2005, when 15,337 NoDs were recorded. NoD filings peaked in first-quarter 2009 at 135,431. DataQuick's NoD statistics go back to 1992.

"It looks like the mortgage servicers doing the foreclosure paperwork are systematically working through a backlog. While their pile is getting smaller, they're working at a steady pace. With one exception, the number of NoDs we've seen filed each quarter over the last year-and-a-half hasn't changed much, and probably just reflects staffing and workload logistics," said John Karevoll, DataQuick analyst.

In first quarter 2013 California saw 18,568 NoDs filed. In last year's second quarter the number was 25,747. In third quarter 2013 it was 20,314. Fourth quarter was 18,120. In first quarter 2014 the tally was 19,215, and last quarter it was 17,524.

"The relatively high NoD tally in second quarter last year reflected a one-time bump because of deferred activity and policy change. Otherwise the quarterly flow of NoDs since early last year has been remarkably flat, and probably doesn't reflect any meaningful changes in trends. The overall trend is that homeowner distress continues to decline because of a stronger economy and rising home prices," Karevoll said.

Most of the loans going into default are still from the 2005-2007 period. The median origination quarter for defaulted loans is still third-quarter 2006. That has been the case for more than five years, indicating that weak underwriting standards peaked then.

On primary mortgages, California homeowners were a median 12.0 months behind on their payments when the lender filed the Notice of Default. The borrowers owed a median $27,601 on a median $309,083 mortgage.

On home equity loans and lines of credit in default, borrowers owed a median $6,992 on a median $66,150 credit line. The amount of the credit line that was actually in use cannot be determined from public records.

The most active "beneficiaries" in the formal foreclosure process last quarter were Wells Fargo (2,195), Bank of America (1,763) and Nationstar (1,047).

The trustees who pursued the highest number of defaults last quarter were Quality Loan Service Corp (for Wells Fargo and others), MTC Financial (Bank of America, Greentree, JP Morgan Chase) and Sage Point Lender Services (Nationstar, Bank of New York, US Bank and OneWest Bank).

San Diego-based DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. CoreLogic acquired DataQuick in March. Notices of Default are recorded at county recorders offices and mark the first step of the formal foreclosure process.

Although 17,524 default notices were filed last quarter, they involved 17,105 homes because some borrowers were in default on multiple loans (e.g. a primary mortgage and a line of credit).

Among the state's larger counties, loans were least likely to go into default last quarter in San Francisco, Marin and San Mateo counties. The probability was highest in Madera, Tulare and Fresno counties.

Trustees Deeds recorded (TDs), or the final loss of a home to the foreclosure process, totaled 7,392 last quarter - the lowest level for any quarter since 6,078 TDs were filed in fourth-quarter 2006. The all-time peak was 79,511 foreclosures in third-quarter 2008. The state's all-time low was 637 in second-quarter 2005, DataQuick reported.

On average, homes foreclosed on last quarter took 8.7 months to wind their way through the formal foreclosure process, beginning with an NoD. That's down from an average of 9.5 months the prior quarter and down from 9.1 months a year earlier.

At formal foreclosure auctions held statewide last quarter, an estimated 41.0 percent of the foreclosed properties were bought by investors or others that don't appear to be lender or government entities. That was up from an estimated 39.4 percent the previous quarter and down from 54.1 percent a year earlier, DataQuick reported.

Foreclosure resales - properties foreclosed on in the prior 12 months - accounted for 6.1 percent of all California resale activity last quarter. That was down from a revised 7.6 percent the prior quarter and down from 11.5 percent a year ago. Foreclosure resales peaked at 57.8 percent in first-quarter 2009. Among the state's larger counties last quarter, foreclosure resales varied from 0.9 percent in San Francisco County to 16.3 percent in Madera County.

Short sales - transactions where the sale price fell short of what was owed on the property - made up an estimated 5.8 percent of the state's resale market last quarter. That was down from an estimated 7.5 percent the prior quarter and 13.7 percent a year earlier.

Young Optimism