Facing Foreclosure? A New California Law AB2424 Could Give You More Time to Sell Your Home...

During the years of the Great Recession, the vast majority of my Sacramento area listings between 2007 - 2012 were with home sellers in some sort of distress or default. And, often I would receive panicked calls from homeowners toward the end of the foreclosure process -- days before the foreclosure was to take place -- asking to list and sell their home asap. And that scenario was extremely difficult to work though, because many mortgage companies would not delay a foreclosure to allow the homeowner to sell. I fought tooth and nail -- sometimes with success and we were allowed to delay the foreclosure and given time to list/sell the home, and other times the home was foreclosed out from underneath the homeowner. 

I am sure you can imagine how devastating that would be.

Well -- thanks to a new law passed in 2024, if you are a homeowner who is facing imminent foreclosure of your home, AB2424 may give you some extra time to sell your home before it is foreclosed out from under you. 

I so wish this had been the law back in the day! Better now than never...Here’s what you need to know in simple terms and how the new rules from AB2424 may be able to help you:

First and foremost -- under the new law, homeowners facing foreclosure should be provided 45 days to sell their home. Of course there is a process to follow, and if followed correctly, you should have ample time to sell your home before foreclosure. If you are staring down the barrel of a foreclosure (also known in California as a "Trustee Sale"), and decide to list your home for sale with a licensed real estate agent, you can request a delay in the foreclosure. If you sign a listing agreement with a real estate agent at least 5 business days before the foreclosure sale date, the foreclosure may be postponed for 45 days. This will provide time to market your home, find a buyer, and close the sale...so you may be able to pay off your delinquent mortgage, sell your home, take your net proceeds (or complete a "short sale" if you have no equity), and avoid foreclosure of your home. 

Have an accepted offer on your home? If you find a buyer for your home and sign a purchase agreement (an accepted offer), you can ask for another delay. As long as your real estate agent follows the correct process, submits the signed purchase agreement 5 business days before the new sale date, the foreclosure may be pushed back for yet another 45 days. This means that as long as you’re actively working to sell your home, the AB2424 gives you a couple different opportunities to delay foreclosure and potentially walk away with your home equity as cash in your bank account.

Peeps, this is a huge deal. I can't even tell you how many more homeowners I could have helped to avoid during the recession if this had been the law back then!

If you are a Sacramento homeowner facing foreclosure and want to list your home for sale -- do not hesitate to reach out to me. I welcome your call at 916-342-1372 or email me at erin@erinstumpf.com.

Home sellers, pro tip: turn the heat on...

I showed a few homes to some buyer clients earlier this week, and two of the three homes we visited were frigid inside. Let me tell you, we were in and out of those two chilly homes quickly! 

As a home seller, it's important to recognize that turning on the heat during these cold months can make a big difference in how potential buyers experience your home. While I am sure you are not excited to spend the money on utility bills heating a home you don't currently live in, I promise you it is worth the small investment.

Imagine stepping into a house that's colder inside than it is outside. It feels unwelcoming, uncomfortable, and uninviting—a stark contrast to a warm, cozy atmosphere that instantly makes you feel at home and want to stay. Buyers are likely to notice this right away, and it can leave a lasting negative impression. In fact, I think that the feeling of warmth and comfort plays a huge role in helping buyers envision themselves living in the space.

A heated and temperate home feels way more inviting and offers a much more pleasant experience for anyone touring the property. It helps buyers connect emotionally with the space, linger during the showing and appreciate the qualities of the home, and an emotionally connected buyer is much more likely to make an offer. Additionally, heating your home can ensure that important features, like plumbing and appliances, stay in good working condition throughout the cold months, avoiding any surprises during inspections. 

I'm not talking about heating your home to the point of hot yoga...keep the thermostat temperature around 68 or 70.

While the cost of heating a vacant home might seem like an extra expense, the return on investment can be significant. A welcoming, comfortable environment could be the difference between a potential buyer walking out of the showing quickly eager to leave, or lingering, falling in love, and making an offer. Don’t let the winter chill keep your home from showing its best side—turn on the furnace and create a space that buyers will want to call their own.

New Listing - 3771 North Edge Drive, Sacramento, CA 95821

Loved by the same family for over 50 years, this impeccably-maintained 2 bedroom, 1.5 bathroom, approximately 1,493sf Arden Arcade home is ready for a new owner, and is the perfect blank canvas for your personal touches. You will love the light and bright floorplan. Enter to find a cozy living room with brick fireplace. There is a separate spacious family room with a bay window. Large formal dining room is the perfect place to host an amazing dinner party! Cute kitchen has lots of storage space and an eat-in nook. Spacious bedrooms with ample closet space. Hallway bathroom has a tub/shower combo. Large utility room with indoor laundry room and pantry area, and an adjacent additional half bathroom. HUGE over one third acre backyard with large patio, two large storage sheds, and lots of sunny space to garden or play. Wide side yard could potentially accommodate room for your toys, or perhaps a future detached garage or accessory dwelling unit - there are numerous possibilities to explore! Location location location, with close proximity to award-winning K-12 schools, shopping, restaurants, parks, convenient freeway access, and more! Don't wait! Offered at $415,000. For more photos, a 3D Virtual Tour, and information please visit 3771 North Edge Drive, Sacramento, CA 95821.

New Listing - 16 Somer Ridge Drive, Roseville, CA 95661

Loved by one owner for over a decade, this 4 bedroom, 2 bathroom, 2,340sf hidden gem is tucked away in the gated community Somerset Hills and is ready for a new owner. You will love the spacious, light and bright layout with a freshly painted interior and new floors. Enter into the foyer. A formal living room overlooks the front yard. Spacious kitchen opens to the family room and has a large breakfast counter, stainless appliances, LOTS of cabinet and counterspace, and has a large sunny eat-in dining nook. The family room features a cozy fireplace and looks out to the backyard. Huge separate formal dining room. The primary suite has abundant light, dual closets and linen cabinet, and an ensuite bathroom with a separate tub and a stall shower. Down the hallway three more large bedrooms and another bathroom with a tub/shower. Large patio space is the perfect place to enjoy coffee and conversation, or for al fresco dining while entertaining guests on a crisp evening. Big 0.19ac lot backyard with lots of sunny space to garden or play. Enviable inside laundry/utility room features extra storage cabinets. Attached 3-car garage. Central heat & air. Cul-de-sac lot! Section 1 pest clearance. HOA dues are $85/mo. All this is located in close proximity to award-winning k-12 schools, public transit, parks, shopping, restaurants, freeway access, and more! Don't wait! Successor Trustee Sale. Offered at $760,000. For more photos and a 3D virtual tour, please visit 16 Somer Ridge Drive, Roseville, CA 95661.

Featured on ABC News 10 in a story about potential difficulties getting homeowners insurance during real estate transactions...

Yesterday I was interviewed for an ABC 10 news story about potential difficulties getting homeowners insurance during real estate transactions...you can watch the news story here. spoiler alert: yes you can usually get a new homeowners insurance policy with relative ease in most Sacramento neighborhoods. BUT where things start to get dicey depends on your location, potentially on your claims history, the condition of the home, and if your home is located near a wildland-urban interface. When I am meeting with home buyers and home sellers, there are a few things I ask, or remain on the look-out for:

• Are there recent insurance claims on the property? If the answer is YES, then that scenario may require extra due diligence...no matter how small or benign the claim may have been, this could pose an issue for the next home-buyer when they are shopping for an insurance. Was it a claim related to an electrical issue? Plumbing? The roof? If you are selling a home and you have had an insurance claim in the last 5ish years, please dig up as much documentation as possible as to how the issue was resolved. The buyer's insurance company will likely want to see this. AND you might want to take the proactive step of getting a new homeowners insurance policy quote up front for your buyer.
• Are there trees encroaching on the structures? If the answer is YES, it may be advisable to get these trimmed as soon as possible. If you are a seller, you may want to have foliage trimmed away from the structure before you list the home. If you are a buyer, you may want to ask the seller to trim foliage, or alternatively you may want to do this shortly after closing. While this may not prevent you from obtaining an insurance policy, it may result in a policy cancellation or a non-renewal.
• Do you have a wood shake roof, or a super old composition roof? If the answer is YES, it may be advisable to replace your roof. If you are a seller, you may want to perform roof maintenance or obtain roof replacement bids before you list the home. You can use these as disclosures, and then IF it becomes necessary to replace the roof as a condition of issuing an insurance policy, you will not have to scramble when you are under the pressure of timelines. If you are a buyer, you may want to get your own roof replacement bids for budgeting purposes, or alternatively you may want to plan to replace the roof shortly after closing. While this may not prevent you from obtaining an insurance policy, it may also result in a policy cancellation or a non-renewal. 
• Do you have a Zinsco main electrical panel? If the answer is YES, it may be advisable to replace your main panel. If you are a seller, you may want to have a licensed electrical contractor inspect your panel, or obtain main panel replacement bids before you list the home. You can use these as disclosures, and then IF it becomes necessary to replace the panel as a condition of issuing an insurance policy, you will not have to scramble when you are under the pressure of timelines -- though I will say that the timeline from obtaining a permit to actual replacement usually takes about 45 days as SMUD (or Roseville Electric, or PG&E, depending on where you are) has to visit the house to approve the configuration. If you are a buyer, you may want to get your own panel replacement bids for budgeting purposes, or alternatively you may want to plan to replace the panel sometime after closing. While this may not prevent you from obtaining an insurance policy, it may also result in a policy cancellation or a non-renewal. 
• Do you have old plumbing? If the answer is YES, I'm not sure I would suggest proactively doing anything, unless you have a burning desire to upgrade or replace all of the pipe and fixtures in your home!...however I've had multiple instances over the last year or so where the insurance company required installing a "Leak Detection Device" to the main water meter within a certain timeframe after closing in order to keep the insurance policy. The device itself ranges from $500 - $800, and installation expenses vary with the location of the water meter, if there is already a power source nearby, etc.
• Is your home super old? If the answer is YES, being old by itself is not necessarily an issue unless you have a brick foundation. Brick foundations may require retrofit before they can be insured. Or if your home is not bolted to its foundation...which may sound completely nuts -- why would a home not be bolted to its foundation? Folks, I have seen some things...you may be required to install a gas shut-off device. 
• Are you in a high fire hazard area? If the answer is YES, you probably have already had to deal with clearing defensible space around your home, or the threat of non-renewal or cancellation, or the California Fair Plan insurance program...your buyer will face the same challenges.

SO! Working with a trusted real estate agent to help you identify these issues and navigate them is key. If you are buying a home, start shopping for your homeowners insurance policy on day one. If you are selling a home, just be aware that these issues are becoming more common and it may be necessary to retrofit your home in order for your buyer to get a new insurance policy -- or better yet you could be proactive in doing some preventative maintenance or repairs to ensure your home is eligible for a policy with good and affordable coverage. I have some great tradespeople I can refer for all of these things if needed.

Got questions? I am here to help. Do not hesitate to reach out to me at 916-342-1372.

Proposition 33: VOTE NO

Let me clear up misperceptions about Proposition 33: VOTE NO. It is a deeply flawed rent control initiative that will hurt both California's renters and housing providers. Despite some confusion I’ve seen and heard about what this measure would do, let me be crystal clear: Prop 33 would dismantle key protections under the 1995 Costa-Hawkins Rental Housing Act (passed by the California Legislature) and lead to harmful consequences for the housing market. 

Here’s why you should vote NO: 

(1) Prop 33 would cripple development of new rental properties: Prop 33 would allow rent control on properties built after 1995. Right now, Costa-Hawkins prevents rent control on newer buildings, so that developers continue to invest in creating rental housing. If Prop 33 passes, rent control could be imposed on all properties, even new construction. Why would any developer build in California if their units could be immediately subject to rent control? This will absolutely bring development of new rental properties to a screeching halt, worsening the housing crisis. How would this be good for anyone? 

(2) Prop 33 would eliminate fair rent adjustments after a tenant moves out: Under Prop 33, housing providers would no longer be able to raise rents to market rates after a tenant moves out. Currently, Costa Hawkins allows "vacancy decontrol" which permits rents to be reset to a market-rate when a tenant vacates a unit. This ensures housing providers can cover costs like renovating the unit, maintenance, and the rising costs of property taxes and insurance. Without this, providers will absolutely struggle to keep up with the increasing costs of maintaining their properties and keep up with inflation, leading to financial strain and fewer rental options as these housing providers decide to go out of business. How does that help tenants? 

(3) Prop 33 would hurt “mom and pop” property owners: Prop 33 would even allow rent control to be applied to single-family homes, which are currently protected under Costa-Hawkins. This move would further discourage single-family homeowners from renting out their properties, shrinking the already limited rental market and reducing housing options for families. I’ve personally talked to several rental homeowners who are fearful of Prop 33 passing and would sell these homes immediately - which would take these rental homes off the rental market. How’s that good for tenants? 

Prop 33 is literally a recipe for disaster. It will stifle new housing development, punish housing providers, and ultimately lead to fewer (not more) rental options for Californians. We are currently over 3 MILLION housing units short of what we need in California according to the California Department of Housing & Community Development. Let’s focus on fixing our severe housing shortage and on BUILDING MORE PLACES FOR PEOPLE TO LIVE. Please - vote NO on Prop 33.

Article I wrote for this month's Comstock's Magazine: The Changing Landscape of California Real Estate: What Home Buyers and Sellers Need to Know...

This month's edition of Comstock's Magazine includes an article I wrote about the National Association of REALTORS® Settlement and recent real estate practice changes, which became effective last month…and I underscore higher level of transparency and the continued importance of REALTORS as trusted experts in transactions.

Effective August 17, these key practice changes include mandatory buyer representation agreements, requiring buyers to formalize their relationship with agents before home tours, and the elimination of buyer-agent compensation offers in MLS listings. Buyers will need to negotiate agent fees upfront, enhancing transparency and shifting some of the dynamics of negotiating offers and terms with sellers. Sellers may adopt new marketing strategies to appeal to buyers navigating these changes, highlighting the importance of skilled real estate professionals during the process.

Read the article here.

Some strategies to sell your Sacramento home during the Autumn season...

Autumn in Sacramento brings a unique charm with its more crisp, temperate weather and red and golden-hued leaves (the leaves in the City of Trees can be off the hook!) -- and it offers an excellent backdrop for selling your home. Additionally, there tend to be fewer homes on the market in the fall, which can create an opportune time for sellers to sell with less competition from other homes. However, preparing your property for sale during this season requires a slightly different approach to highlight its best features and appeal to potential buyers. Here are a few ideas to optimize your home for a sale during the fall season.

1. Embrace the Season with Curb Appeal. Autumn in Sacramento can be stunning, with the changing foliage creating a lovely picturesque setting. Enhance your home’s curb appeal by keeping your yard clean and manicured. Power wash the exterior of your home and walkways for a crisp appearance. Clear your roof and gutters of debris, and consider trimming trees or other foliage that may be in contact with your home. Rake leaves regularly to avoid the appearance of clutter, and consider planting seasonal flowers or adding potted mums to brighten up the entrance. A welcoming front porch with cozy fall decor like pumpkins or a tasteful wreath can make a strong first impression. 
2. Optimize Indoor Comfort. As temperatures start to drop from our crazy hot summer days, ensuring your home feels inviting inside is crucial. Make sure your heating system is in good working order and consider scheduling a HVAC maintenance tune-up (and keep the documentation for disclosure!). Adding plush throw blankets and pillows can create a cozy atmosphere that buyers will find appealing. Clean or replace air filters to ensure good air quality and a comfortable indoor climate. 
3. Highlight Energy Efficiency. Autumn is a great time to showcase your home’s energy efficiency. Highlight features like double-pane windows, modern or extra insulation, or a programmable thermostat. Additionally, many homebuyers these days are often impressed by things like heat-pump HVAC systems that run on electricity instead of natural gas. If your home is exceptionally energy efficient, you might also considering gathering a year of utility bills to disclose to your buyer as well to highlight your low SMUD or PG&E expenses. These upgrades can attract buyers looking to reduce energy costs, especially as colder weather approaches. 
4. Focus on Natural Light. Sacramento’s autumn days are shorter, so it’s essential to maximize natural light indoors. Clean your windows to let in as much sunlight as possible and consider using light-colored, sheer window treatments to brighten up rooms instead of heavy curtains. Consider repainting dark walls and ceilings in light colors, such as whites or creams to help reflect natural light and make rooms feel brighter and more spacious. Choose decor items that reflect light, such as mirrors, metallic finishes, or glass vases. These can help bounce natural light around the room and enhance the overall brightness. Proper lighting can make spaces appear larger and more inviting. 
5. Address Seasonal Maintenance. Autumn is the perfect time to tackle seasonal maintenance tasks that might catch a buyer’s eye. Clean gutters to prevent potential water damage, check the roof for missing shingles, and ensure that exterior drains are clear. Addressing these issues proactively can prevent last-minute repairs and boost buyer confidence. And again, keep any documentation from maintenance to disclose to your next buyer.

By focusing on these autumn-specific strategies, you can make your Sacramento home stand out in the market. Embrace the season’s charm to create a welcoming environment that potential home buyers will be eager to call home.