In the central Valley of California including San Joaquin and Stanislaus and Merced counties I have found an interesting trend amoung the expired and withdrawn listings I am calling. What is it, you ask? Probably one third of those I spoke with have decided to rent their underwater properties.
That concerns me for a couple of reason:
1. They owe more than the property is worth....for how long? 10-15 years?! A little scarry..a lot scarry!!
2. The rent may or may not make all of the payment now. What about vacancy?
3.And here's the most important:
a. the HOMEOWNER RECOVERY ACT which protects sellers freom a tax problem under certain circumstances on the personal residence runs out Oct of 2012. While sellers may still be considered owner occupants by the IRS after a year of being out of the home...what happens if the seller is forced to short sale AFTER Oct 2012...no protection.
b. Also, SB581 in California cureently says no deficiency on any loan doing a short sale right now. What if that law and the protection under it changes during the next few years?
I am not trying to be a doomssayer, but I do want to be sure people understand what ramifications could be if they wait too long to take care of their situations.
Please do not assume anything right now. Find out what your real options are and what your real issues could be. I will be happy to give a free consult to anyone so we can look at it all together. The financial health of your family and your future could be at stake. Do the right thing. Do your homework.
Be well.
Tuesday, November 1, 2011
Friday, October 28, 2011
HARP Can it work for you?
I must have received a zillion calls and emails around the HARP announcement made by President OBama in Las Vegas this past week. We'll be talking about it on my radio show tomorrow on KFIV 1360 AM, Modesto Ca. Listen in at 10 AM.
As you all know, most of Stockton, Ca and Merced, Ca,well, literally 90% of our beloved Central Valley is underwater on value. Wouldn't it be wonderful if this HARP program made it possible for most of our neighbors and family to keep their homes? Absolutely!!
I don't have all of the info yet, but here are the criteria:
1. cannot have missed a payment in 6 months and must be current now
2. your loan must be Fannie Mae or Freddie Mac
3.there is no ceiling on how upside down you are
4. limited qualification to be accepted but no criteria yet on what that means
5. no principle reductions
6.reduces interest rates to new low
WHAT WE DON'T KNOW YET:
1. will it help if you have multiple loans on the property
2. do you have to be employed
3. is there a limit on price or value or can it help everyone
4. will all Fannie and Freddie lenders participate
Stay turned and posted for further info.
As you all know, most of Stockton, Ca and Merced, Ca,well, literally 90% of our beloved Central Valley is underwater on value. Wouldn't it be wonderful if this HARP program made it possible for most of our neighbors and family to keep their homes? Absolutely!!
I don't have all of the info yet, but here are the criteria:
1. cannot have missed a payment in 6 months and must be current now
2. your loan must be Fannie Mae or Freddie Mac
3.there is no ceiling on how upside down you are
4. limited qualification to be accepted but no criteria yet on what that means
5. no principle reductions
6.reduces interest rates to new low
WHAT WE DON'T KNOW YET:
1. will it help if you have multiple loans on the property
2. do you have to be employed
3. is there a limit on price or value or can it help everyone
4. will all Fannie and Freddie lenders participate
Stay turned and posted for further info.
Friday, August 12, 2011
The 10 Housing Markets That Will Collapse This Year
Can you believe it?! The 10 housing markets that will collapse this year and Stockton didnt make the list!
The 10 Housing Markets That Will Collapse This Year
by Michael B. Sauter, Douglas A. McIntyre
Friday, August 12, 2011
Friday, August 12, 2011
provided by
The real estate market is already in the deepest depression in modern U.S. history. If you think it can't get any worse, think again. In several cities, the real estate market is about to drop even more. Home values in many of those cities, such as Las Vegas, have already collapsed as unemployment has shot higher. And with no hope of quick recovery, housing prices are expected to continue to fall. 24/7 Wall St. identified ten housing markets that are expected to drop by at least another 10% by 2012.
Methodology: We used data from the Fiserv Case-Shiller Indexes, which track real estate activity in 380 cities. We selected those that are forecast to have the largest percent price drop between the first quarter of this year and the first quarter of next. We added several other pieces of information to our city-by-city information, including June unemployment levels, median household income, and when home prices are expected to reach their troughs in each market.
Median household income in these cities tended to be near the U.S. median, and in some cases well below. We expected to find high unemployment in these cities. This turned out to be the case. In all but one of the cities we examined, unemployment was well above the national average. The rate was over 18% in two of the cities. This link between unemployment and expected future drop in home prices shows again how insidious the housing price problem is.
Home prices fell from all-time highs in 2006. Home equity tapped by second mortgages had been a tremendous source of income then for families who used it for retirement saving, education, and simple consumer purchases. Three years later, many of those homes were worth less than their mortgages. A large population of homeowners still owed a second mortgage. The burden of those two home loans happened to come at a time when national unemployment rose from 4% in the mid-2000s to 10%. The mix of unemployment and high mortgage payments ripped the home market apart.
The ten markets on the 24/7 Wall St. list of "Housing Markets That Will Collapse This Year," and several others like them, may not see a full recovery in home prices for years. Inventories in these markets tend to be large. Demand tends to be low as the unemployed cannot be buyers. Finally, fear of further price drops all exacerbate the problem. No person or organization, including the federal government, has been able to help support the housing market, although the Administration has tried. Not a single plan has built even a thin net under home values, despite the best efforts of the best economic minds in the world.
1. Naples, Florida
Expected price drop: -16.6%
Median family income: $62,800 (137th highest)
Unemployment rate: 10.5%
Median home price: $225,000 (40th highest)
Projected to hit lowest level: Q4 2012
Like much of southwest Florida, Naples was one of the fastest-growing communities in the country as it prepared for the millions of baby boomers on the cusp of retirement. When the housing bubble burst, however, the thousands of construction projects for condominiums and retirement communities were halted or lost money, and home values plummeted. From peak home value in 2006, prices dropped by 55%. They are expected to keep falling through next year more than any major city in the country. By Q1 2012, home values will drop an additional 16.6%, or nearly $40,000.
2. Riverside-San Bernardino, California
Expected price drop: -15.6%
Median family income: $59,700 (190th highest)
Unemployment rate: 13.7%
Median home price: $181,000 (70th highest)
Projected to hit lowest level: Q1 2012
Like so many industrial cities in California, Riverside-San Bernadino is being affected by the recession and housing crisis more than most other parts of the U.S. Unemployment has hit 13.7%, home vacancy and rental vacancy rates are high, and home values are plummeting. Median home prices are down more than 55% from their peak in 2006. By the beginning of next year, prices are expected to drop an additional 15.6%, or nearly $30,000.
3. Las Vegas, Nevada
Expected price drop: -13.9%
Median family income: $58,900 (196th lowest)
Unemployment rate: 12.4%
Median home price: $140,000 (90th lowest)
Projected to hit lowest level: Q4 2012
Las Vegas was one of the center points of the meteoric growth in the first half of the 2000s, only to be followed by a catastrophic fall in the second half. Between 2008 and 2011, home prices in the city dropped by 42.3%, the second greatest decline in the country. Although home values in the city are already more than 58% off their peak, they are projected by Case-Shiller to drop an additional 13.9% by Q1 2012, and then 6.3% more by Q1 2013.
4. Detroit, Michigan
Expected price drop: -13.4%
Median family income: $49,000 (47th lowest)
Unemployment rate: 12.7%
Median home price: $42,000 (the lowest median home price)
Projected to hit lowest level: Q2 2012
Since the recession began, Detroit has been the horror story for plummeting home values, foreclosures, vacancies, and unemployment. To date, Detroit's median home price of $42,000 is the lowest among all 385 major metropolitan areas. While the Motor City has been languishing for some time before the recession, the drop in home value has been more steady, as opposed to the rapid drop-offs seen in cities in Florida, Nevada, and California. Detroit's already record-low values are expected to drop an additional 13.4% by the first quarter of 2012.
5. Merced, California
Expected price drop: -13.2%
Median family income: $42,900 (8th lowest)
Unemployment rate: 18.6%
Median home price: $112,000 (38th lowest)
Projected to hit lowest level: Q2 2012
Merced, California, has a median family income of just $42,900, placing it among the ten poorest major cities in the country. In 2008, the city's property lost 46.1% of its value. This was the second-greatest depreciation in home value for a city since at least 1980. The city's median home prices are expected to drop an additional 13.2% by the beginning of next year.
6. Miami, Florida
Expected price drop: -13%
Median family income: $47,800 (32nd lowest)
Unemployment rate: 13.4%
Median home price: $175,000 (76th highest)
Projected to hit lowest level: Q2 2013
At 13.4%, Miami has one of the highest unemployment rates of any major American city. Home values are above average, but are down by more than 50% since 2006. Partially as a result of the staggering unemployment rate, the value of the city's homes are projected to decrease by another 13% by the first quarter of 2013. What's more disturbing: Prices will then likely fall an additional 10.1%. If this second drop occurs, it will be by far the greatest depreciation of property values in the country in an area already decimated by current low prices.
7. El Centro, California
Expected price drop: -12.1%
Median family income: $43,300 (10th lowest)
Unemployment rate: 28.6%
Median home price: $130,000 (70th lowest)
Projected to hit lowest level: Q1 2012
El Centro, California, is located five miles from the Mexican border, and is one of the poorest cities in the country. Median income is just $43,300 per family, the tenth-lowest in the U.S. Unemployment is at a staggering 28.6%. Between 2006 and 2011, home prices decreased by more than 50%. According to a report in the Imperial Valley Press, one home was sold in the El Centro area before the recession for $390,000. In 2009, that home was listed at $200,000. Prices are expected to drop an additional 12.1% by the first quarter of 2012.
8. Salinas, California
Expected price drop: -11.8%
Median family income: $62,100 (145th highest)
Unemployment rate: 12.8%
Median home price: $240,000 (34th highest)
Projected to hit lowest level: Â Q2 2012
Salinas, California, is a small coastal city located 25 miles south of San Jose. Since 2006, the median value of the 125,000 houses there decreased in value by more than 61%. This is the fourth biggest decline from peak home value among all major American cities. More than 40% of this drop occurred in 2009, the year after the housing bubble burst. Unemployment in the city is at 12.8%, well above the national average of 9.2%. Several companies in the area, including food processing company Romco, expect to continue to lay off workers in the coming months, which should serve to further depress home values.
9. Bethesda, Maryland
Expected price drop: -11.5%
Median family income: $114,100 (the highest)
Unemployment rate: 5.1%
Median home price: $417,000 (5th highest)
Projected to hit lowest level: Q3 2012
Bethesda, the extremely wealthy D.C. suburb, has the highest median family income in the country — $114,100. It also has the fifth highest median home price, at $417,000. That position may change, however, as Case-Shiller projects home values will drop by more than $60,000 by next year.
10. Fort Lauderdale, Florida
Expected price drop: -11.1%
Median family income: $58,800 (194th highest)
Unemployment rate: 11.8%
Median home price: $196,000 (55th highest)
Projected to hit lowest level: Q2 2013
Since 2006, home prices in Fort Lauderdale have dropped by nearly 50%. A full 28% of that drop occurred in 2009 alone. As was the case throughout most of Florida, the collapse of the housing bubble decimated the construction-based economy. The unemployment rate of nearly 12% is evidence of the construction sector's disastrous decline. The value of the 686,000 homes in the Fort Lauderdale area is expected to get even worse through at least the second quarter of 2013. Between Q1 2011 and Q1 2012, the median home price is projected to decline an additional 11.1%. Between 2012 and 2013, that number will further decrease by 8.7%.
The real estate market is already in the deepest depression in modern U.S. history. If you think it can't get any worse, think again. In several cities, the real estate market is about to drop even more. Home values in many of those cities, such as Las Vegas, have already collapsed as unemployment has shot higher. And with no hope of quick recovery, housing prices are expected to continue to fall. 24/7 Wall St. identified ten housing markets that are expected to drop by at least another 10% by 2012.
Methodology: We used data from the Fiserv Case-Shiller Indexes, which track real estate activity in 380 cities. We selected those that are forecast to have the largest percent price drop between the first quarter of this year and the first quarter of next. We added several other pieces of information to our city-by-city information, including June unemployment levels, median household income, and when home prices are expected to reach their troughs in each market.
Median household income in these cities tended to be near the U.S. median, and in some cases well below. We expected to find high unemployment in these cities. This turned out to be the case. In all but one of the cities we examined, unemployment was well above the national average. The rate was over 18% in two of the cities. This link between unemployment and expected future drop in home prices shows again how insidious the housing price problem is.
Home prices fell from all-time highs in 2006. Home equity tapped by second mortgages had been a tremendous source of income then for families who used it for retirement saving, education, and simple consumer purchases. Three years later, many of those homes were worth less than their mortgages. A large population of homeowners still owed a second mortgage. The burden of those two home loans happened to come at a time when national unemployment rose from 4% in the mid-2000s to 10%. The mix of unemployment and high mortgage payments ripped the home market apart.
The ten markets on the 24/7 Wall St. list of "Housing Markets That Will Collapse This Year," and several others like them, may not see a full recovery in home prices for years. Inventories in these markets tend to be large. Demand tends to be low as the unemployed cannot be buyers. Finally, fear of further price drops all exacerbate the problem. No person or organization, including the federal government, has been able to help support the housing market, although the Administration has tried. Not a single plan has built even a thin net under home values, despite the best efforts of the best economic minds in the world.
1. Naples, Florida
Expected price drop: -16.6%
Median family income: $62,800 (137th highest)
Unemployment rate: 10.5%
Median home price: $225,000 (40th highest)
Projected to hit lowest level: Q4 2012
Like much of southwest Florida, Naples was one of the fastest-growing communities in the country as it prepared for the millions of baby boomers on the cusp of retirement. When the housing bubble burst, however, the thousands of construction projects for condominiums and retirement communities were halted or lost money, and home values plummeted. From peak home value in 2006, prices dropped by 55%. They are expected to keep falling through next year more than any major city in the country. By Q1 2012, home values will drop an additional 16.6%, or nearly $40,000.
2. Riverside-San Bernardino, California
Expected price drop: -15.6%
Median family income: $59,700 (190th highest)
Unemployment rate: 13.7%
Median home price: $181,000 (70th highest)
Projected to hit lowest level: Q1 2012
Like so many industrial cities in California, Riverside-San Bernadino is being affected by the recession and housing crisis more than most other parts of the U.S. Unemployment has hit 13.7%, home vacancy and rental vacancy rates are high, and home values are plummeting. Median home prices are down more than 55% from their peak in 2006. By the beginning of next year, prices are expected to drop an additional 15.6%, or nearly $30,000.
3. Las Vegas, Nevada
Expected price drop: -13.9%
Median family income: $58,900 (196th lowest)
Unemployment rate: 12.4%
Median home price: $140,000 (90th lowest)
Projected to hit lowest level: Q4 2012
Las Vegas was one of the center points of the meteoric growth in the first half of the 2000s, only to be followed by a catastrophic fall in the second half. Between 2008 and 2011, home prices in the city dropped by 42.3%, the second greatest decline in the country. Although home values in the city are already more than 58% off their peak, they are projected by Case-Shiller to drop an additional 13.9% by Q1 2012, and then 6.3% more by Q1 2013.
4. Detroit, Michigan
Expected price drop: -13.4%
Median family income: $49,000 (47th lowest)
Unemployment rate: 12.7%
Median home price: $42,000 (the lowest median home price)
Projected to hit lowest level: Q2 2012
Since the recession began, Detroit has been the horror story for plummeting home values, foreclosures, vacancies, and unemployment. To date, Detroit's median home price of $42,000 is the lowest among all 385 major metropolitan areas. While the Motor City has been languishing for some time before the recession, the drop in home value has been more steady, as opposed to the rapid drop-offs seen in cities in Florida, Nevada, and California. Detroit's already record-low values are expected to drop an additional 13.4% by the first quarter of 2012.
5. Merced, California
Expected price drop: -13.2%
Median family income: $42,900 (8th lowest)
Unemployment rate: 18.6%
Median home price: $112,000 (38th lowest)
Projected to hit lowest level: Q2 2012
Merced, California, has a median family income of just $42,900, placing it among the ten poorest major cities in the country. In 2008, the city's property lost 46.1% of its value. This was the second-greatest depreciation in home value for a city since at least 1980. The city's median home prices are expected to drop an additional 13.2% by the beginning of next year.
6. Miami, Florida
Expected price drop: -13%
Median family income: $47,800 (32nd lowest)
Unemployment rate: 13.4%
Median home price: $175,000 (76th highest)
Projected to hit lowest level: Q2 2013
At 13.4%, Miami has one of the highest unemployment rates of any major American city. Home values are above average, but are down by more than 50% since 2006. Partially as a result of the staggering unemployment rate, the value of the city's homes are projected to decrease by another 13% by the first quarter of 2013. What's more disturbing: Prices will then likely fall an additional 10.1%. If this second drop occurs, it will be by far the greatest depreciation of property values in the country in an area already decimated by current low prices.
7. El Centro, California
Expected price drop: -12.1%
Median family income: $43,300 (10th lowest)
Unemployment rate: 28.6%
Median home price: $130,000 (70th lowest)
Projected to hit lowest level: Q1 2012
El Centro, California, is located five miles from the Mexican border, and is one of the poorest cities in the country. Median income is just $43,300 per family, the tenth-lowest in the U.S. Unemployment is at a staggering 28.6%. Between 2006 and 2011, home prices decreased by more than 50%. According to a report in the Imperial Valley Press, one home was sold in the El Centro area before the recession for $390,000. In 2009, that home was listed at $200,000. Prices are expected to drop an additional 12.1% by the first quarter of 2012.
8. Salinas, California
Expected price drop: -11.8%
Median family income: $62,100 (145th highest)
Unemployment rate: 12.8%
Median home price: $240,000 (34th highest)
Projected to hit lowest level: Â Q2 2012
Salinas, California, is a small coastal city located 25 miles south of San Jose. Since 2006, the median value of the 125,000 houses there decreased in value by more than 61%. This is the fourth biggest decline from peak home value among all major American cities. More than 40% of this drop occurred in 2009, the year after the housing bubble burst. Unemployment in the city is at 12.8%, well above the national average of 9.2%. Several companies in the area, including food processing company Romco, expect to continue to lay off workers in the coming months, which should serve to further depress home values.
9. Bethesda, Maryland
Expected price drop: -11.5%
Median family income: $114,100 (the highest)
Unemployment rate: 5.1%
Median home price: $417,000 (5th highest)
Projected to hit lowest level: Q3 2012
Bethesda, the extremely wealthy D.C. suburb, has the highest median family income in the country — $114,100. It also has the fifth highest median home price, at $417,000. That position may change, however, as Case-Shiller projects home values will drop by more than $60,000 by next year.
10. Fort Lauderdale, Florida
Expected price drop: -11.1%
Median family income: $58,800 (194th highest)
Unemployment rate: 11.8%
Median home price: $196,000 (55th highest)
Projected to hit lowest level: Q2 2013
Since 2006, home prices in Fort Lauderdale have dropped by nearly 50%. A full 28% of that drop occurred in 2009 alone. As was the case throughout most of Florida, the collapse of the housing bubble decimated the construction-based economy. The unemployment rate of nearly 12% is evidence of the construction sector's disastrous decline. The value of the 686,000 homes in the Fort Lauderdale area is expected to get even worse through at least the second quarter of 2013. Between Q1 2011 and Q1 2012, the median home price is projected to decline an additional 11.1%. Between 2012 and 2013, that number will further decrease by 8.7%.
Thursday, August 4, 2011
Home owners receiving loan mods are being viewed as short sellers by Fannie Mae!
Hey everybody,
I haven't verified this for sure as of yet, but this is some important information regarding loan modifications and their potential impact on your ability to purchase a home down the road. Check it out and let me know your thoughts!
I haven't verified this for sure as of yet, but this is some important information regarding loan modifications and their potential impact on your ability to purchase a home down the road. Check it out and let me know your thoughts!
Begin article-----------
Just when it seems sanity is returning to the lending industry….this gets dropped on us.
Homeowners receiving loan modifications for their primary residence (and noted on their credit report); are now being treated as short sellers by Fannie Mae…even if the homeowner was never late on their mortgage.
In other words: A responsible homeowner, who made their payments on time and received a loan mod for their primary residence will now have to wait three (at least) years before they can purchase their NEXT home (or refi their current residence).
The only exception to the rule: If a homeowner received a loan modification on an “investment property/second home” may receive financing on another property (primary residence only) on a case by case basis (underwriter’s discretion) within 2 years.
Here are the Fannie rules:
o Refinance transactions: On previously modified loans…refinancing is not permitted.
o New purchase transactions: When a borrower’s current residence (previous loan) was modified AND the property is being retained as a 2nd home/investment property…financing for another home…will NOT be permitted.
o New purchase transactions: ..When a borrower’s previous loan was modified AND the property is being sold…the borrowers loan application …should be treated with caution and reviewed for delinquencies and short payoffs.
o New purchases of 2nd home or investment properties: When a borrower’s current residence (owner occupied) has been granted a loan modification… financing for the next home will not be NOT permitted.
o Refinances where another property (not the subject property) has a loan modification should be reviewed with "caution" to ensure that there was no short refinance (treated as a short sale).
For more rules regarding the rules for short sale /foreclosure waiting periods please click here.
Daniel Dobbs
Sr. Mortgage Loan Officer
American Commerce Mortgage
Cell: 949 250-3981 Fax (714) 970-9777
Dandobbs6@gmail.com DRE # 00986886 …..NMLS# 307631
Sr. Mortgage Loan Officer
American Commerce Mortgage
Cell: 949 250-3981 Fax (714) 970-9777
Dandobbs6@gmail.com DRE # 00986886 …..NMLS# 307631
Wednesday, July 20, 2011
LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED
LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED
In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.
Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.
Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.
This law is fully set forth as Senate Bill 458 (Corbett) at www.leginfo.ca.gov.
FTC WILL NOT ENFORCE MARS AGAINST REALTORS®
As another major victory for REALTORS®, the Federal Trade Commission (FTC) announced today that it will generally not enforce the Mortgage Assistance Relief Services (MARS) Rule against real estate brokers and agents engaged in short sales. Real estate professionals must nevertheless comply with MARS prohibitions against misrepresentations and other laws prohibiting unfair and deceptive acts. Also, FTC’s forbearance of enforcement is limited to real estate licensees in good standing and acting in compliance with state laws, who assist consumers in negotiating, obtaining, or arranging short sales in the course of securing the sale of the consumer’s home.
In its announcement today, the FTC acknowledged “it is especially important that the Rule not inadvertently discourage real estate professionals from helping consumers” with short sales. The FTC will, however, continue to enforce the MARS Rule as to all other providers of mortgage assistance relief services, and also as against real estate professionals doing loan modifications or other types of mortgage assistance relief services.
Next week, on July 21, 2011, the FTC’s rulemaking authority for MARS will be transferred to the new Consumer Financial Protection Bureau (CFPB), but the FTC will continue to enforce the Rule. The CFPB will have the authority to determine whether to change the MARS Rule as it applies to real estate professionals conducting short sales.
The FTC’s News Release is available at http://www.ftc.gov/opa/2011/07/mars.shtm.
JJ - K&L Gates
In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.
Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.
Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.
This law is fully set forth as Senate Bill 458 (Corbett) at www.leginfo.ca.gov.
FTC WILL NOT ENFORCE MARS AGAINST REALTORS®
As another major victory for REALTORS®, the Federal Trade Commission (FTC) announced today that it will generally not enforce the Mortgage Assistance Relief Services (MARS) Rule against real estate brokers and agents engaged in short sales. Real estate professionals must nevertheless comply with MARS prohibitions against misrepresentations and other laws prohibiting unfair and deceptive acts. Also, FTC’s forbearance of enforcement is limited to real estate licensees in good standing and acting in compliance with state laws, who assist consumers in negotiating, obtaining, or arranging short sales in the course of securing the sale of the consumer’s home.
In its announcement today, the FTC acknowledged “it is especially important that the Rule not inadvertently discourage real estate professionals from helping consumers” with short sales. The FTC will, however, continue to enforce the MARS Rule as to all other providers of mortgage assistance relief services, and also as against real estate professionals doing loan modifications or other types of mortgage assistance relief services.
Next week, on July 21, 2011, the FTC’s rulemaking authority for MARS will be transferred to the new Consumer Financial Protection Bureau (CFPB), but the FTC will continue to enforce the Rule. The CFPB will have the authority to determine whether to change the MARS Rule as it applies to real estate professionals conducting short sales.
The FTC’s News Release is available at http://www.ftc.gov/opa/2011/07/mars.shtm.
Senate Bill 458, passed by California's legislature as an urgency statute with an immediate effective date, limits lenders' demands in connection with short sales. It effectively treats a short sale to which a lender consents as if it is a non-judicial foreclosure sale. This is significant because, under California law, a lender may not obtain a deficiency following a non-judicial foreclosure sale.
SB 458 follows Senate Bill 931, which was passed in 2010. SB 931 added Section 580e to California's Code of Civil Procedure. SB 931 provided that "[no] judgment shall be rendered for any deficiency under a note secured by a first deed of trust or first mortgage for a dwelling of not more than four units." SB 458 expands on SB 931 by prohibiting the holder of a residential mortgage loan from requiring the borrower to pay any additional compensation, aside from the proceeds of the sale, in exchange for the lender's written consent to the sale. In short, it appears a lender who agrees to a short sale may not require the borrower to either (a) pay additional sums beyond the proceeds of the short sale, or (b) sign a short sale note.
SB 458 also amends Section 580e to exclude many commercial transactions, such as where the trustor is a corporation, limited liability company or limited partnership.
JJ - K&L Gates
Tuesday, June 7, 2011
What a great time to purchase a home!!! Why, you ask?...what about the terrible economy?...what about job loss in the Valley?...what about fear for the market prices going down again???YIKES!!!
Well, prices are at such a low we can hardly believe it ourselves. When, in recent memory, have you been able to buy a newer 3000 square foot home for less than $200,000? And never have interest rates been this low...as in never!!! When amortized loans we're "invented" the interest rates were at 5%!
So, what's holding you back? Foreclosure or short sale in your recent past?
Did you know after 3 years following either of these events you can repurchase as a first time homebuyer on an FHA,VA, or USDA loan as long as you qualify with a minimum 620 FICO score and your rations are in line. That's amazing, isn't it? Those of you who lost homes or short sold in 2008 can buy this year! How lucky can you get???
Were you investors aware that there is a loan program that allows you to purchase investment properties with only 10% down? And, it's government insured and fixed rates. Those of you wishing you could purchase income properties now while prices and rates are so low..you can!!!!
I am holding a homebuyer's seminar this Saturday, June 18 at 1 PM in Manteca. There we will have Lisa Johnson, my favorite lender, Bill Ames, a credit repair guy ready to help you qualify soon to purchase with specific cures to bad or low credit scores, another Spanish speaking lender we have worked with for years, free credit reports, free consultations!
Well, prices are at such a low we can hardly believe it ourselves. When, in recent memory, have you been able to buy a newer 3000 square foot home for less than $200,000? And never have interest rates been this low...as in never!!! When amortized loans we're "invented" the interest rates were at 5%!
So, what's holding you back? Foreclosure or short sale in your recent past?
Did you know after 3 years following either of these events you can repurchase as a first time homebuyer on an FHA,VA, or USDA loan as long as you qualify with a minimum 620 FICO score and your rations are in line. That's amazing, isn't it? Those of you who lost homes or short sold in 2008 can buy this year! How lucky can you get???
Were you investors aware that there is a loan program that allows you to purchase investment properties with only 10% down? And, it's government insured and fixed rates. Those of you wishing you could purchase income properties now while prices and rates are so low..you can!!!!
I am holding a homebuyer's seminar this Saturday, June 18 at 1 PM in Manteca. There we will have Lisa Johnson, my favorite lender, Bill Ames, a credit repair guy ready to help you qualify soon to purchase with specific cures to bad or low credit scores, another Spanish speaking lender we have worked with for years, free credit reports, free consultations!
IT'S ALL FREE!!!
ARENT YOU SICK OF PEOPLE TELLING YOU NO?
WE PRIDE OURSELVES ON...YES~!~!
Call me now to register or go to the website. See you there!!
Saturday June 18, 2011 1 pm, Manteca
Wednesday, May 18, 2011
6.38 Million late on their mortgage in April
Tuesday, May 17th, 2011, 5:42 taken from http://www.housingwire.com/2011/05/17/missed-payments-on-mortgages-jump-to-6-4-million-in-april
Mortgages 30 or more days delinquent or in foreclosure totaled 6.38 million in April, a 2.3% increase from the previous month, according to Lender Processing Services (LPS: 28.59 +0.42%).
The LPS "first look" monthly mortgage performance report showed a sudden increase in troubled loans in April after an 11% monthly drop in March. However, delinquencies are still 16.3% below levels seen one year ago. Overall, 7.97% of all loans in the LPS database are 30 or more days delinquent.
Of the 6.38 million properties in 30-day delinquency or worse, 4.2 million are not in foreclosure. There are also 1.9 million loans 90 days or more delinquent but not in foreclosure.
These mortgages are the exact ones making up the shadow inventory of foreclosures that are keeping downward pressure on home prices and stalling out a recovery. According to another data provider, CoreLogic (CLGX: 18.34 +0.22%), the shadow inventory has declined slightly over the past year.
CoreLogic defines the shadow inventory as mortgages in at least 90-day delinquency and currently transitioning from foreclosure to REO. This supply of properties currently not on MLS systems but winding through the foreclosure process fell to 1.8 million in January 2011, down from 2 million the year before.
But this inventory will continue to see incoming loans for some time.
"In addition to the current shadow supply, there are nearly 2 million nondelinquent or current negative equity loans that are more than 50% upside down that will likely become shadow supply in the near future," CoreLogic said. end article
My assessment:
You know, in America we don't have debtors prison as in the old days of Merrie Olde England, however, there are 6.3 million people being incarcerated in their homes per this article. Are you one of them? Do you know what your options may be?
According to NAR, out of the millions of foreclosures since 2005, over 50% were never listed for sale with a Realtor. People walked away not knowing their options or the consequences of their actions, which in many cases were dire. There is no reason to make uneducated decisions because of fear or embarrassment. Decisions that may have long term negative effects on your family, your credit and security and peace of mind. Information is at your fingertips. Numerous sources are waiting to help you. I am one of those. Let's talk. I can help!
Mortgages 30 or more days delinquent or in foreclosure totaled 6.38 million in April, a 2.3% increase from the previous month, according to Lender Processing Services (LPS: 28.59 +0.42%).
The LPS "first look" monthly mortgage performance report showed a sudden increase in troubled loans in April after an 11% monthly drop in March. However, delinquencies are still 16.3% below levels seen one year ago. Overall, 7.97% of all loans in the LPS database are 30 or more days delinquent.
Of the 6.38 million properties in 30-day delinquency or worse, 4.2 million are not in foreclosure. There are also 1.9 million loans 90 days or more delinquent but not in foreclosure.
These mortgages are the exact ones making up the shadow inventory of foreclosures that are keeping downward pressure on home prices and stalling out a recovery. According to another data provider, CoreLogic (CLGX: 18.34 +0.22%), the shadow inventory has declined slightly over the past year.
CoreLogic defines the shadow inventory as mortgages in at least 90-day delinquency and currently transitioning from foreclosure to REO. This supply of properties currently not on MLS systems but winding through the foreclosure process fell to 1.8 million in January 2011, down from 2 million the year before.
But this inventory will continue to see incoming loans for some time.
"In addition to the current shadow supply, there are nearly 2 million nondelinquent or current negative equity loans that are more than 50% upside down that will likely become shadow supply in the near future," CoreLogic said. end article
My assessment:
You know, in America we don't have debtors prison as in the old days of Merrie Olde England, however, there are 6.3 million people being incarcerated in their homes per this article. Are you one of them? Do you know what your options may be?
According to NAR, out of the millions of foreclosures since 2005, over 50% were never listed for sale with a Realtor. People walked away not knowing their options or the consequences of their actions, which in many cases were dire. There is no reason to make uneducated decisions because of fear or embarrassment. Decisions that may have long term negative effects on your family, your credit and security and peace of mind. Information is at your fingertips. Numerous sources are waiting to help you. I am one of those. Let's talk. I can help!
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