Witz Real Estate

Documents You Should Expect To Provide Your Lender For A Short-Sale

2012-03-13T11:35:00.000-07:00

If you are still unsure about what to do with the home that is strangling you and your family financially, a Short-Sale may be your best option to keep a Foreclosure off your credit reports. Yes, a SS (Short-Sale) will cause a ding and show up as well, but less of a ding, and less time will it be on the infamous FICO scorekeepers books.

If you haven't already figured out what it may take, I will give you just a sneak peak about the kinds of documents you most likely will be required to present to your Realtor who will subsequently present them to your mortgage holder on your behalf. You can go to my website KeepYourWitz.Com, and look for more information at the top with the Robo-Signing Settlement tab (to see if you qualify for that help), or the bottom with a YouTube video which also describes a SS.

This is not what every lender will ask for, but this will give you a sample of what you may need to be prepared to turn over.

1) Two most recent pay-stubs, for each borrower on the note
2) Verification of length of employment for each borrower on the note
3) Most recent bank statements, all accounts. Including 401, etc.
4) Most recent Tax Returns
5) Hardship Letter
6) Proof of medical disability or hardship to support your change in earning capacity
7) If self employed, current income statement, balance sheet and statement of owners equity
8) Documentation of any additional income
9) Completion of Financial Worksheet showing all income and expenses

The better prepared you are before you call your Realtor, the smoother the SS transaction will go. Don't kid yourself though. As a Certified Distressed Property Expert here in the Santa Clarita Valley, I've done my share of SS's.....it's a challenging process to say the least. As long as everyone is working towards the common goal, it is more likely to find completion.

For any information about Real Estate in Valencia, Saugus, Stevenson Ranch, Canyon Country, Newhall, Castaic, or any other areas of the Santa Clarita Valley, feel free to contact me. I will help you and your family in any way I can.

Record High Levels of Home Buyer Affordability Continue

2012-03-09T08:25:00.000-08:00

According to Freddie Mac, due to the rates being at an all time 60 year low, the levels of Home Buyer Affordability is continuing to increase.

This is good news. The article I read this morning states that 'The typical family had more than double the income needed to purchase a median price home in January."

The market is definitely starting to turn. We have great, unbelievable rates, lending is loosening (just a tad), we are working through the Short-Sales, the Robo-Signing Settlement is underway, HARP has expanded, all things that are helping to work through this.

The number of homes here in the Santa Clarita Valley for sale is very low. Multiple offers are happening. Short-Sales are getting approved. Buyers are buying homes. When we start to see a few more homes available for sale, I believe more people will come out to buy as well.

We know that a lot of people were waiting for the infamous bottom to appear....it's here people.....that's what we are hearing...it's here....ya think?

Santa Clarita Valley 30 Day MLS Stats

2012-03-06T09:27:00.000-08:00

The amount of Active listings in Santa Clarita Valley has shrunken since I last noted the stats here for you. But, the number of properties under contract has increased. And, yes that is due to the number of Short-Sale listings showing up as 'Back-up' position.

The joke had kind of been that what showed as active really wasn't. I believe more agents are following the MLS rules and noting them as in back-up position vs. leaving them showing as active when they truly were under contract.

At any rate, below are the stats of today:

ACTIVE:
Total ~ 894
of that,
405 are Short-Sales
142 are REO's

PENDING/BACK-UP:
Total ~ 953
of that,
609 are Short-Sales
155 are REO's

And, Closed Sales in the last 30 days:
total ~ 241
of those,
86 were Short-Sales
and
74 were REO's

Still hanging tough with about the same number of closings per month. And, still about 60% distressed properties.

Certified Distressed Property Expert ~ that's what I am.

Contact me for any of your Distressed Property questions.

What's Going On With The Robo Settlement?

2012-03-03T09:00:00.000-08:00

It happened a couple of weeks ago. Settlement for the Robo-Signing debacle. 25 Billion dollars to assist in the housing/finance mess. Well, hmmm, that's a little short for the 750 Billion dollar mess we are in.

Regardless, this post is to help explain it a bit to the people that read my blog. That count on me for some help in understanding what is happening in their Real Estate world of Santa Clarita Valley.

First, it's a 3 year plan. Nothing going to happen overnight. And, if you are backed by Fannie, Freddie, or have and FHA loan, this doesn't apply to you.

5 billion will be paid out in 2k increments to the people that were 'Robo-Signed' into foreclosure. Okay, so, there were several Linda Greens signing. Those people still were in default....just sayin'.

10 billion is to assist people that are delinquent via load modifications and possible principle reductions.

3 billion to help underwater homeowners that are still current on their mortgage.

7 billion to help distressed homeowners via forbearance, relocation assistance (think HAFA), and Short-Sales.

There is a website called National Mortgage Settlement you can find via my website : My Personal Website ~ KeepYourWitz.com Click on Robo-Signing Settlement on the toolbar near the top. It has a lot of information, more than I can provide here. Will help determine if you are a candidate and more options for you.

Wells Fargo has is the first one I have read that has laid out how it is supposed to work. Wells Fargo Explains How It's Going To Work It's a great little piece. And, I'm sure we will see more.

Great, we've got a little bit of money going around. Now, that they have had their hand slapped, there are more guidelines to follow.

I do think that there will be more incentive to expedite short-sales. We know that it costs more to the bank to foreclose than approve a short-sale too. Whatever the banks earn the most credits on, i.e. whatever they lose the least amount of money by doing....is what is going to happen.

As a Certified Distressed Property Expert, it's my job to keep informed about any of the latest developments that involve underwater homeowners. Short-Sale may be your only option to avoid a foreclosure on your financial history. As always, don't wait for someone to come knocking on your door, be proactive. Ask for help....now....instead of when it's too late.

Fannie Mae to Sell About 2500 Homes to Investors in Bulk Offering

2012-02-28T13:00:00.000-08:00

Heard some buzz about this already, started last year, but it's really here. Fannie Mae is going to unload about 2500 REO homes to investors that will turn them into rentals.

Yes, they have to be pre-qualified and experienced at doing this type of thing. Not just someone like you or me can get in on this. Well you can try I suppose. Click here to see if it's possible for you: Federal Housing Finance Agency.

What I found most interesting was the fact that only about 400 of them are vacant properties. I did happen to see a listing in the MLS this week for an REO with a tenant in it. I have seen many short-sales like that, but I just saw a tenant occupied REO listing for the first time....

So, Fannie Mae is spinning this as a built-in tenant....I'm thinking quite possibly a built-in squatter! But, I am happy about anything that gets more REO's out of the pipeline and either people renting them or people buying them.....the sooner the better!

Increase Traffic on Housing Websites, Does it Mean New Hope for Housing?

2012-02-26T08:22:00.000-08:00

As I sit sipping my Coffee with the Coconut Creme flavor steaming through, I read my daily dose of Realtor news.

Same old stuff, really it is. Just a few things that I felt were worth mentioning.

First, the post title. Zillow reported a huge increase in traffic on their site. I've actually seen it on my personal sight too (www.KeepYourWitz.com). Does that mean anything? Maybe, or maybe just more people curious about the market. Quite possibly they are just cozily searching for fun while bundled in blankets in the morning. I am more of an optimist....so I will take it as people are more interested in buying a home now. Or at least, gaining interest.

The home builders are ramping up their business. More building permits, more preparation to build new homes, and more hammers nailing wood. Well, maybe they are a little premature. But at least they are generating more jobs. Increase in any employment is good!

Now, not to sound, or end with, a negative...but in the beautiful Santa Clarita Valley our inventory is extremely low. Today it sits at just a total of 924 units available for sale. And, that is all of our little valley. Valencia, Acton, Agua Dulce, Castaic, Newhall, Saugus, Stevenson Ranch, and Canyon Country. Only 924 available for sale. I won't even mention that many of those probably aren't truly active. Another post there...

I do think that in the shadows, no pun on the shadow inventory intended, that we are preparing for a rebound. Or recovery, whatever you wish to call it. I believe that the stepping stones are being laid. I believe that it is going to be a very long path still to follow, and a little blurry as to the end point, but, we are walking in the right direction.

Home Affordable Modification Program ~ Updates

2012-02-22T14:12:00.000-08:00

As a Santa Clarita Valley Realtor you'd think my only concern was about selling homes. Working with buyers to buy and sellers to sell. Not completely so. Of course, that's my main focus....but as a Certified Distressed Property Expert I've been trained on how to help people avoid foreclosure and have learned that with lots of patience and perseverance a homeowner can sometimes stay in their home.

The HAMP program was introduced a couple of years ago and there hasn't been a huge amount of success. There has been a lot, but it's minuscule compared to the number of homes going to foreclosure.

Recently there have been some changes and a time extension for the program.
1) The deadline has been extended to 12/31/2013
2) Debt Ratio Eligibility has been increased
3) Rental Property may now be eligible
4) Balance Reduction
5) Fannie and Freddie guaranteed loans are now eligible

You can find out more details by going to their website:
Making Home Affordable Modification.Gov

And, there is a video up on YouTube that talks about the program as well:
YouTube HAMP Video

Really, the basics that make me write about this again? Don't wait, don't wonder. Contact your lender before you get behind. There are many options, and you must be an advocate for yourself and your family.

Start by calling your lender

Do I Still Need To Prep My House For Sale?

2012-02-19T14:53:00.000-08:00

Do you still need to? Of course you do! Anytime you want to sell your home and earn the most possible from the sale, you absolutely need to prepare your home by putting your best foot forward and listening to your Realtor. He/She sells many more homes, on a regular basis, than you ever have. A Realtor shows homes to real buyers, not HDTV buyers....but those ones are pretty good too!

So what do you have to do? What steps should you take? Walk through your home with your Realtor, let them guide you. Below are some simple suggestions, but each home may have a separate obstacle that your Realtor will teach you how to overcome.

We don't want just one person that likes your home enough to write an offer, we want several...

1) Clutter ~ may seem like an easy one. But, you may not see the clutter that someone else does. That toaster you use once a week? Put it away. That knife block? Can you put in inside the cabinet instead? Have a couple things on the counters, but not so many that you can't see. Furniture too. You may have a couple of really cozy pieces that you can hardly walk around. Move something out. NO, don't worry that your garage will be filled. Buyers would rather see a nicely laid out home with a crowded garage than not be able to see the floors or counters.

2) Highlight the good ~ People like center islands in the kitchen. They like fireplaces in the family room. And, some really like built-ins in their home too. Again, show off the center island. Can it be another eating place? Set a 'table' on it with pretty plates and place mats. If not quite big enough, place a potted plant or vase with fresh flowers. Fireplace? Make sure it's not just looking like an ugly old square box. It will be the focal point when you are arranging furniture, is sure better be, so make it nice too. Paint a wall near by. Add some candlesticks of different heights. Maybe a piece of art that draws the eye. If it still has the dated bronze screen, spend the money and put a more modern one in it's place. The built-ins that all your family keepsakes are in? Make sure it isn't overwhelming with...you got it clutter..... and make sure the colors go with the rest of the home. There should always be a similar flow of color through the house. Does any painting need to be touched up?

3) Clean ~ and keep it clean! Plan to do a spring cleaning, including the windows and their sills, and plan on keeping up on that level of cleanliness. Nothing worse that a buyer looking at a bathroom with toothpaste stuck in the sink, or the morning bacon frying pan still on the stove. Remember, you'll have less clutter, so it will be much easier to keep it sparkling. Animal care needs to be top notch. Litter boxes need to be hidden and super clean. Dog piles in the back yard need to be non-existent.

4) Landscaping/Exterior ~ Keep your gardener, even if it's you, on his toes! Make sure no dead spots on lawn. Trim all bushes. Keep fresh little lovely flowers in the beds. Make sure all exterior is swept and washed down. Any obvious peeling paint should be repaired prior to putting your home on the market.

5) Model home decorator touches ~ We all know how beautiful those model homes are. And, I'm here to remind you that buyers swoon over that kind of appearance. Anything, and I mean anything, that you can do to make your home look and feel more model perfect? Do it! Color coordinated bath towels. Candles, music and lights ~ all an absolute must.

There will be items we, as Realtors, suggest that pertain to your individual home. I strongly recommend you accomplish them......father maybe knows best, but Realtors know better....when it comes to the sale of your home.

New Landlord - Tenant Relationships ~ You Need To Know These

2012-02-16T09:23:00.000-08:00

A lot of people are buying up homes to become investors. Where they couldn't compete with Mr. Trump before, they now are stepping into the race. And, you all know I believe that Valencia, and it's surrounding neighborhoods, has some great investment opportunities at this time.

But, you must keep current on tenant-landlord relationships. As I too am a landlord, I read up on that portion of Real Estate to share with my blog peeps.

This tid-bit I had read and planned on writing a post about, but when a portion of it dropped into my lap while looking for investment property it jumped up in the priority list of notifying my clients, past and present.

Changes for 2012 include:

"SB 332, which allows landlords to ban the smoking of cigarettes and other tobacco products anywhere on the property, even inside the tenant's apartment unit. For new tenants in 2012, the landlord must indicate on the rental agreement the areas where smoking is prohibited. For existing tenants before 2012, a new smoking ban is a change to the terms of tenancy that requires adequate notice, depending on whether the tenancy is a month-to-month or fixed term agreement.

Another win for landlords pertains to their rights in relation to HOA's (C.A.R. sponsored SB 150). Starting January 1st, any new HOA prohibition against renting or leasing a unit in a common interest development does not affect an owner who acquired title before the rental prohibition. That owner's right to rent persists for certain subsequent transfers, such as probate sales, spousal transfers, parent to child transfers, and other transfers exempt from property tax reassessment. This law does not apply to rental prohibitions in effect before 2012.

Tenant victories this year include the right to display election and other political signs under SB 337, but the landlord can make reasonable restrictions. For a single family dwelling, a political sign can be displayed from the yard, window, door, balcony, or outside wall. For a multifamily dwelling, the sign can be on the door or window of leased premises. The landlord may also limit the size of a political sign to six square feet, and restrict posting of a sign to 90 days before an election or vote and removal within 15 days thereafter.

And, one more tenant victory was SB 341. Beginning July 1, 2012, a multifamily building of five or more units must arrange for recycling services if reasonably available from a local service provider. The landlord may, however, require tenants to source separate their recyclable materials to help comply with this law.

Gotta A Tax Lien and Want To Short-Sale?

2012-02-12T13:55:00.000-08:00

Just a quick note to remind people that think they can't complete a short-sale if they own income tax money to the Franchise Tax Board ~

The California FTB is accepting requests from taxpayers who have short sold their home and do not have enough funds in escrow accounts to pay the recorded state tax lien in full.

Taxpayers in this situation may apply for a Partial Release of Lien, which releases a specific piece of property from a recorded state tax lien. However, it does not release the lien in its entirety. The lien remains in effect against the taxpayer and continues to encumber other property the taxpayer owns or acquires in the future.

Your agent should know, way before the escrow is about to close, if there are any tax liens against the property. But, it is possible to have it taken off the home, complete the short-sale and move on....but, with the lien still on just you.

Billions of Relief Money

2012-02-10T09:05:00.000-08:00

It's all over the news this morning. The robo-signing mess has created a huge amount of money to help the housing mess.

I've read it a few different places, so will you.This link, I think, is the best one:

Mortgage Deal Could Bring Billions In Relief

I could repeat everything, but really it's worth reading the article. People that were foreclosed upon erroneously may get up to $2000.00 in damages.

People that are underwater may get help with refinancing or principal reduction.

What I like best? That your loan doesn't have to be backed by The two F's....Fannie or Freddie. They have been doing a bit of refinancing even if you are underwater. I've checked for many clients....and, unfortunately, they were not F or F backed. So this I see, as a really good thing. The 2k isn't spectacular, a drop in the bucket. But, if we can get the rest of the people that have been continuing to pay their mortgages instead of walking away, to get a principal reduction or refinance sooner than later? We'll keep more people in their homes. We all want that, don't we?

By the way? California is getting the most!

Santa Clarita Valley MLS Stats

2012-02-07T09:44:00.000-08:00

Valencia and the surrounding communities have a couple hundred less homes available for sale right now....kind of typical for beginning of the year. But, sharing the stats for you.

ACTIVE: 993
Short-Sales ~ 449
REO's ~ 147

PENDING or TAKING BACK-UP OFFERS: 769
Short-Sales ~ 483
REO's ~ 135

CLOSED SALES IN LAST 30 DAYS : 244
Short-Sales ~ 97
REO's ~ 73

And, the number of cancelled, withdrawn and/or expired listings in the last 30 days ~ 150

Military Buyers ~ $5,000 Grant

2012-02-06T08:49:00.000-08:00

Just a quickie ~ I know we have quite a few people in Valencia/Santa Clarita Valley that this could help!

Active duty personnel, veterans, retired members of the military, and employees of the U.S. Department of Defense and the Department of Homeland Security are eligible to apply for up to $5,000 in down payment and closing costs in the purchase of a first home. The national non-profit Pentagon Federal Credit Union Foundation is offering the assistance through its Dream Makers program and says the grants can be applied to a mortgage from any financial institution.

More info is at: www.PentagonFoundation.org ~ Dream Makers

Sounds good to me!

Rental Values Expected To Double In 14 - 20 Years!

2012-02-03T08:27:00.000-08:00

I have a rental in Valencia, over in the Westridge community. My tenants, knock on wood, are marvelous! I definitely think now is a great time for people to invest anywhere in Santa Clarita Valley and hold it as income property. When you can purchase a little 2 + 2 for 125k that is freeway close and has a 2 car garage? And, the rent can cover the expenses? Now, that's a great rental!

Lawrence Yun is chief economist of the National Association of Realtors. He always has a 1/2 page blurb in our Realtor magazine. Last night I cut out one that was right on target for would-be investors....to get them off the fence.

Whether you are investing in stocks/bonds/mutual funds, or Real Estate....it's for the long term, right?

Now everything will go up, yes. Well, except a fixed mortgage!

From my N.A.R. economist pal: "Rents rose at a better than 3 percent annualized rate in the third quarter of 2011, government data shows, and private data sources imply even faster rent growth. And, there is no reason to believe this rent growth will cool, given the favorable demographics of a rising number of young adults over the next 20 years, a high number of owners of foreclosed homes who can't buy in the near term, and the low construction rate of apartments. If annual rent gains stay near 3.5%, rents will double in 20 years. If they reach 5 %, rent doubling would occur in 14 years."

I do feel that when the families whom have been displaced by foreclosure are able to start buying again, we will see some income properties make an adjustment in their monthly rents charged.....but, I do believe that Yun is pretty right on about the doubling of the rent values in my lifetime! And, a fixed mortgage is just that, FIXED.

We've Been Taking It For Granted !

2012-01-28T10:02:00.000-08:00

The debt forgiveness act is due to expire at the end of 2012...that's really important to remember. We've been able to help many homeowners with short-sales and there hasn't been the problem with paying capital gains taxes on the shorted amount.

Lest you forget, if you owe 500, short-sell your house for 400, there is a 'capital gain' in the tax-mans' eyes of 100k. As of now, the income tax on that gain has been waived. Unless that law is extended, we would have to pay the taxes on that 100k gain.

I'm not trying to scare someone into putting their home on the market, but it is definitely something to consider. Whether your home is foreclosed upon or sold in a short pay-off scenario....no capital gains taxes are due....as of this moment.

Read the full article if you wish here:

Tax Relief On Mortgage Debt Forgiveness Due To Expire

This is scheduled to change at the New Years Bell Dropping of 2013!

They Hold About 60 - 70% of Mortgages

2012-01-26T08:41:00.000-08:00

Freddie Mac and Fannie Mae either hold or cover about 60 - 70 % of all mortgages. Not mine, but a lot! They have a forbearance program for those who are unemployed....for a period of time.

Here's the article if you want to read the whole thing: Fannie and Freddie Forbearance

The basics of it are that you can suspend your monthly mortgage payment, or reduce it, if you have a job loss. Obviously you still owe it and when you are working again a re-payment plan is worked out. But, if you or your spouse are jobless for a few months, this could help a lot. Rather than feeling like you may lose your home, you know that there is a possibility that you can just skip a payment or reduce a payment and not get trapped in the foreclosure system.

The most important thing is if you are in a jobless position that you speak with your lender right away. Don't wait til you are behind. Talk to them about this program. If your loan is backed by one of the big dogs, it just may keep you in your home instead of scouring the ads for rentals.

Just A Reminder About Scams

2012-01-23T10:54:00.000-08:00

First article read this morning makes me post this little tid-bit. I've touched on this before, but I would like to remind everyone that there are certainly ambulance chasers out there in the loan modification world!

Make sure you verify, if you decide to try and work with a company that states they can help you, that they are not just interested in a quick buck but do have a proven track record.

C.A.R. has this great link which leads you to more help in the verification process:

Tips For Avoiding Mortgage Mod Scams

Although it is time consuming, I have been told by successful loan-moders that YOU can do exactly what these companies are offering to do.

Just my 'Mother Hen' attitude kicking in......

Housing Is "Poised For Better Days"

2012-01-16T10:24:00.000-08:00

Nice, well part of it at least, article in L.A.Times today. Talking about foreclosures, housing recovery, employment ~ oh, wait, that's what they are always talking about!

But I like this thought from Celia Chen, a housing economist at Moody's Analytics : She believes housing is "poised for better days" after the backlog of foreclosures is cleared away. She said housing is now undervalued, with prices compared to incomes well below the average over the last 20 to 30 years.

The next statement: California home prices probably will track the national trend and hit bottom during the middle of this year, she said. However, prices will probably recover at a slower pace than much of the country because housing and unemployment problems run so deep in the Golden State.

And this, I agree with this as well: However, analysts also said they expect housing in California to stabilize more quickly than in many states. The reason: a speedy foreclosure process that normally takes place without court action and is one of the most streamlined in the nation.

Thanks goodness we are a non-judicial foreclosure state! And, if we can get some more employment (of which I read another article that 2 of the 10 cities with best increased employment were in this Golden State) we are on the right road to those better days!

January 12, 2012 Santa Clarita Market Stats

2012-01-12T13:45:00.000-08:00

Finished working the phones so wanted to pop these numbers out there for my buyers and sellers knowledge.

ACTIVE : 1024 Total
Of that number:
Short-Sales - 464
REO's - 160

PENDING/BACK-UP : 708 Total
Of that number:
Short-Sales - 473
REO's 123

CLOSED ESCROWS LAST 30 DAYS : 286
Of that number:
Short-Sales - 100
REO's - 81

Still holding. A little lower numbers most probably due to the holidays!

One Person's Idea of REO's in 2012

2012-01-11T11:34:00.000-08:00

~ I received the below article in an e-mail from one of my associates that does a lot of REO listings ~ The comment in Italics is what I've been saying alllllll along!

----------------------------------------------

Where is REO Market Heading in 2012?

In the rollercoaster world of bank owned properties, now might be the time when the ride starts to take a drastic turn. Many analysts projected 2011 as the year when the backlog of foreclosure cases would hit the market, but this did not occur, leading to a lot of speculation about the future of these properties heading into 2012.

Ivan Choi, senior vice president of Austin, Texas-based Matt Martin Real Estate Management, said the REO industry will continue to struggle in 2012 similarly to last year because lawsuits, legal actions by state attorney generals and the aftereffects of the robo-signing scandal are still hitting lender-servicers.

“We may have a repeat of 2011 where we're in a little bit of a standstill where REO inventory that's actually offered for sale on the market is going to be relatively low compared to the overall number of foreclosure cases,” Choi told MREO. “This could be the year that the backlog of foreclosures comes into the market in the form of REO or short sales, but I don't believe there will be an influx of REO into the market in 2012.”

Choi noted that the foreclosure process is much more stringent now than it was last year or even five years ago, making it harder for a bank to issue a foreclosure against a distressed borrower. He said banks and servicers are “deliberately” moving slowly through the foreclosure process because they don't want to be blamed for any errors that might occur.

One way to possibly move the process along more quickly is for banks and servicers to mark down, from an accounting standpoint, the value of assets that they have in default, Choi said.

“There is no hammer in driving them to take a loss and put the property through the foreclosure process. Instead, they have leeway to hold it on the books because then they don't have to realize the actual value of that asset which would affect their accounting,” Choi told this publication.

Choi said a stabilized economy, and not mortgage servicers, would be the key to any improvement in the housing market. “The way to get out of this crisis is for unemployment to go down and the overall economy start to recover,” Choi said. “As long as the economy is healthy and people have jobs, which allows them to acquire mortgages and real estate in the first place, that will dramatically decrease the foreclosure problems we have today.”

---------------

I tend to agree.....thoughts?

Important Loan Cost Information Upcoming!

2012-01-10T11:14:00.000-08:00

Mitchell MilatLoan Officer
Augusta Financial Mortgage
Phone: 661-810-3362
Fax: 661-260-2252
License: nmls#253456 dre# 00979304
mitch@mitchforloans.com
www.MitchforLoans.com

Mortgage Rates and Fees likely to Rise Soon Due to Government Action :(

As part of the End of Year Budget Negotiations, the President, Senate, and Congress agreed to assess and increase fees charged by Fannie Mae and Freddie Mac to help raise funds to fund the Government. You might remember that there was a fierce battle over increasing taxes on Millionaires or on those earning over $250k per yr, which did not pass.

The Government elected to raise funding instead by assessing new fees on mortgages backed by Fannie Mae and Freddie Mac which makes up over 90% of the Conventional Market. Unfortunately, homebuyers and homeowners are going to pay extra very soon. Please see below release from Wells Fargo, and consider moving up the timing of your transaction to avoid the incremental additional cost of up to 80 basis points, which would equal $200k loan x .80% = $1,600 fee increase (Points, etc):

Conforming and Non-conforming prices will change based on recent Congressional action, worsening pricing

Conforming and Non-conforming prices will change based on recent Congressional action.

Specifically:

Freddie Mac and Fannie Mae are increasing their Guarantee Fee (GFee) effective with April “settlements,” which will worsen pricing.
In order for a loan to meet the April settlements, it must close by Feb. 29, 2012.
The GFee increase will worsen prices by up to 80 bps depending on note rate.
Wells Fargo Wholesale Lending is staggering the impacts of that increase by Rate Lock Period in an effort to offer lower rates to consumers in the market for as long as possible.

Below are the effective dates of the staggered plan:

January 11 – GFee increase will impact 45- and 60-day pricing. You must begin calling Priceline for Rate Lock Extensions rather than extending online for Conventional Conforming loans (extensions will not be available online for Conventional Conforming loans).
January 31 – GFee increase will impact 30-day pricing.
February 13 – GFee increase will impact 15-day pricing.

Thoughts For Early 2012

2012-01-05T08:59:00.000-08:00

I've spent a good portion of today reading through other peoples thoughts, predictions, and data for what may go on in 2012.

I am glad that what I read is confirming what I believe as well.

"I tell people we're five years through a 10-year adjustment," he said. "Not until year 10 will we return to the traditional rate of housing starts." ~ from a Fannie Mae economist.

We are going to continue to see sales that are challenging, REO properties, Short-sales and fewer traditional sellers than the bank-involved ones. We should start to see a decrease in the shadow inventory as we continue to work on getting distressed properties sold via short-sales and we, as a whole community, work towards keeping people actually in their homes via some type of financial assistance.

Interest rates look as if they will continue to be the lowest I've ever seen since I started buying houses almost 30 years ago.

What does this mean for you? If you think you want to buy? Keep looking, the right home will come and it's a great time to find a home. If you want to sell and you have zero equity, Short-Sales are easier to navigate than just at the beginning of 2011. If you aren't quite sure what you want to do? Call me, I'm more than happy to chat with you about your personal situation and maybe give you some sound advice.

My favorite response from a call I made this week? To someone that I actually convinced to stay in their home versus making a commission? "Lauren, I am forever grateful for your advice."

Happy to oblige. I've been working pretty hard to get sales to pay bills. Just like your job! I do believe that we are seeing improvement. Most definitely. Not just in housing. Maybe I still have my rose colored glasses on, but again, as you know, I'd much rather see the good than the bad. Better for my health!

So, may you have the infamous Health, Wealth and Happiness in this year of 2012!

CareerBuilders Report Says More Jobs

2011-12-28T09:44:00.000-08:00

I know I harped on this before and posted a link to this blog on Facebook, but here again, it would appear that there will be improvement on the job front. Particularly in the western part of the US.

2012 Survey ~ More Jobs, More Money

That's the article I read on Housing Wire this morning. Simple information, big results. Let's face it, the more people making more money the more our economy can work towards a recovery. And, as I'm a Realtor, that means more people can keep their homes, hopefully, or buy new ones.

It's a good thing people, see the positive, don't waste your energy on the negative.

We're getting through this block wall and moving toward something that will make life head back to normalcy.

Want To Buy A Foreclosure At Auction You Say??

2011-12-21T15:00:00.000-08:00

I've had several clients attempt to buy a house at auction. It's a scary thing I hear. You have to have lots of cash. You're bidding against other people who have done this many times. You can't inspect the properties. You may have a cloud on Title when it closes.

Sounds like many scary things to me!

But, a few things to help you if you consider this route courtesy of House Logic:

Solutions to 6 common foreclosure auction challenges

1. Challenge: Getting reliable information about foreclosure sales. Many companies charge fees to send you lists of foreclosures that may not be current, or sell expensive foreclosure-buying “systems” that promise to teach you how to make millions in real estate.

Solution: Most foreclosure sales are still announced in local newspapers. And you can get accurate information about buying foreclosures from reliable book publishers:

2. Challenge: You can’t get inside the property before the auction to inspect it for structural problems and repairs. Many foreclosure auction properties are in bad shape because the owners couldn’t afford the upkeep. And sometimes angry home owners purposely damage the property to punish the foreclosing lender.

Solution: Walk around the home to check its exterior condition. If it’s vacant, look through the windows. Ask the neighbors what they know about the property. If it was a rental, check the inspection records on file with the local government.

You can safely assume there’s something wrong with any house sold at a foreclosure auction, so cover yourself by bidding no more than 70% of the home’s market value.

3. Challenge: You need to figure out the market value of the house to prepare your bid. Some foreclosure auction announcements include information about the size of the original mortgage. That’s not how much the house is worth or even what the owners owe now. If the current owners bought at the top of the market, their mortgage may be more than the home is worth in today’s market and they could owe even more if there’s a second mortgage on the house.

Solution: Commission your real estate agent to do a broker’s price opinion (BPO) on the home you want to bid on. The BPO will show you comparable sales, telling you what similar, nearby homes that weren’t foreclosure sales have recently sold for.

Bid well below those comparable sales to leave yourself room to pay for repairs and unexpected problems. Ask the agency that runs the auction how to find winning bid amounts from recent auctions. Use that information to guide your current bid, too. A look at local tax and assessment records will tell you more about previous and current auction properties, like square footage and lot size.

4. Challenge: You don’t know if there are liens on the home. Some auctions don’t give you clean title to the property, meaning liens from the federal government or other entities may not be removed during the foreclosure auction process. You’d have to pay off those liens if you won the property.

Solution: Focus your efforts on two or three homes in desirable locations. To find out about any liens, pay a real estate attorney to run a title search on each property and issue a commitment to insure the title after purchase. Ask how the policy treats liens filed between the time of the search and the time you close.

A less-expensive option: Hire an independent title search professional called an abstracter or an online company. Both search options should be under $200, title insurance costs vary by state.

5. Challenge: You have to pay cash and pay it quickly. Most auctions require bidders to come up with the full purchase price in cash within 30 days.

Solution: Don’t count on getting a mortgage that fast. Look for other sources of cash that make financial sense for you.

Take out a home equity line of credit or do a cash-out refinance.

Tap retirement accounts, provided it makes sense for you from a tax perspective.

Work with other investors to fund a partnership to invest in foreclosed homes.

6. Challenge: You’re in love with a house that you’re aware is headed to foreclosure, but you’re afraid to bid on it at the foreclosure auction because you know nothing about the process.

Solution #1: Contact the owners and offer to purchase the home as a short sale. That’s where the bank agrees to let the owners sell for less than what they owe on the mortgage.

Solution #2: You may be able to buy the house after the foreclosure sale. Foreclosure sales are run by a government agency (often the sheriff), which collects the money from the highest bidder and gives it to the bank to pay off the mortgage.

~ Mortgage Rate Information ~

2011-12-19T09:50:00.001-08:00

Record Low Rates Continue BUT!! Govt Looking to Increase Fannie/Freddie Fees! Apply Now

Mortgage Rates start the week nice and low!

*Congress/Senate Budget Deal includes Fannie Mae fee hike! :)

*These fee hikes are expected to cost average borrower $17 per month.

Equal Housing Lender. Licensed by California Dept. of Real Estate.

Mortgage Interest Rates*

Rates as of Monday, 19th December, 2011:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	3.875%	4.19%	$4.70	4.25%	4.44%	$4.92
15-Yr. fixed	180	3.25%	3.59%	$7.03	3.75%	4.02%	$7.27
7-Yr. fixed ARM	360	3.25%	3.51%	$4.35	3.875%	3.61%	$4.70
5-Yr. fixed ARM	360	2.875%	3.59%	$4.15	3.25%	3.66%	$4.35
VA 30 Fixed	360	4.0%	4.31%	$4.77	4.5%	4.79%	$5.07
FHA 30 Fixed	360	4.0%	5.19%	$4.77	4.5%	5.47%	$5.07
20 yr fixed rate 417,000	240	3.75%	4.21%	$5.93	4.625%	4.98%	$6.39
10 yr fixed rate 417,000	120	3.25%	3.61%	$9.77	4%	4.54%	$10.12

Poop or Get off the Pot ~ AKA, Do You Really Want To Buy A Home?

2011-12-17T15:59:00.000-08:00

Not to often I get a buyer in my car, write an offer, get it accepted, and the buyer changes his mind. Some I would say are due to buyers remorse. Jumping in too quickly. Something better comes up the next day. Things like that.

Then you get a buyer that you wonder if their motivation is really there. Are they happy renting, lining the landlords pockets? Or, are they really desiring home ownership?

I make sure they are qualified. I make sure they see everything possible in their price range. I make sure I educate them on the HOA fees, Mello-Roos taxes. Everything that may tack on their monthly housing expense. I ASK them to make their list of wants/needs/wishes.....sometimes I get it too late, or it needs major adjusting.

I can't control their dreams though. That's the hardest part. And, softly popping the dream bubble is the hardest thing I have to do. But, we gotta do it now and again.

That beautiful 3 + 2 priced at 175 when it should be 245? Really, don't count on it. That lovely house that should be 650 and is listed at 580? Standard Sale....hmmm.....too good to be true, maybe? Or, as another article I read today reminds me....the one that seems right on, pictures look great....but we can't get in to view? Don't hold your breath.

Keep moving forward. Some clients have tight parameters and I value them. They understand that we can find something that fits and is in their price range, just we have to be patient. But, the ones that think they should get champagne home on light beer budget? Not gonna happen.

So, it is, unfortunately, my job to burst that champagne bubble and pour the best light beer I can find.....that they can afford. Or, I have to ~ and quickly ~ determine if they really, truly, want to buy a home or keep getting the renters credit on their tax return.

2012 and 2013 Just May Bring More REO Inventory

2011-12-09T12:42:00.000-08:00

So, we're happy that Hope Now has been able to get a million loan mods done. We're happy that the jobless rate is decreasing. We're happy that the interest rates are still ridiculously low....

BUT, MY, OH MY, WE SHOULD BE ECSTATIC THAT NEWS I'M READING NOW SAYS THAT REO'S WILL BE A COMING IN 2012 AND 2013!!

"There is also a potential risk that banks tighten lending standards even further if the European debt crisis deepens," JPMorgan Securities analysts said. "While housing inventory dipped further, there is evidence that this temporary downward trend is about to change direction. Liquidations are expected to pick-up next year and peak in 2013."

I take the bad with the good, but I focus on the good! And, I've been saying for quite some time that until we get through all the REO's (bank owned properties) we won't start to see any appreciation in home values. So, if the Chase analyst is anywhere near correct, that could really help get some values moving in an upward trend.

I'm thinking we are close to the bottom people.

Are We Recovering? Not Quite Yet ~ But I Read The Signs!

2011-12-07T16:37:00.000-08:00

Two articles read this afternoon state that jobless rates are improving, mortgage delinquencies are reducing, and that although we may not be in a recovery, not yet, that we are certainly ending the 'recession'.

I've been working on keeping my glass 1/2 full, rather than 1/2 empty for the last few years. These economic woes have affected everyone. And, my clients and family have been more positive than negative for certain. You'd almost have to be, right? At least make a valiant effort!

"California may finally have turned the corner into recovery, with the job market slated for slow but steady growth over the next two years, according to a report released today by UCLA's Anderson Forecast."

"Mortgage delinquency rates — the ratio of borrowers 60 or more days behind on their payments — will likely tick up to about 6 percent through the first three months of 2012, TransUnion said in its annual delinquency forecast issued Wednesday.~ But by the end of next year, it could drop to 5 percent, TransUnion said. That's well off the peak of 6.89 percent seen in the fourth quarter of 2009."

These are good notes from the two reads of today. Baby steps. Considering houses are still selling, many people still have jobs, and goodness, our health? Consider, it could be a lot worse....and we aren't standing in bread lines.

Current Mortgage Rates

2011-12-05T08:34:00.001-08:00

Mortgage Interest Rates*

Rates as of Monday, 5th December, 2011:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	4.125%	4.35%	$4.85	4.375%	4.59%	$4.99
15-Yr. fixed	180	3.5%	3.79%	$7.15	3.875%	4.19%	$7.33
7-Yr. fixed ARM	360	3.25%	3.51%	$4.35	3.875%	3.61%	$4.70
5-Yr. fixed ARM	360	2.875%	3.59%	$4.15	3.25%	3.66%	$4.35
VA 30 Fixed	360	4.25%	4.51%	$4.92	4.5%	4.79%	$5.07
FHA 30 Fixed	360	4.25%	5.19%	$4.92	4.5%	5.47%	$5.07
20 yr fixed rate 417,000	240	3.75%	4.21%	$5.93	4.625%	4.98%	$6.39
10 yr fixed rate 417,000	120	3.25%	3.61%	$9.77	4%	4.54%	$10.12

Investors Buying More Than Owner Occupied

2011-12-03T08:06:00.000-08:00

Not sure exactly how I feel about it, but it's not a surprise that investors are increasing in the number of homes purchased over people that buy to live in them.

I feel that too many people are still mildly afraid about buying a home right now. Afraid of values, volatility, security. All good things. But, when the investor is picking up the majority of homes, that should certainly be telling the skittish 'would-be owner-occupied' buyers that they should go ahead and buy too!

The article that prompted it says one really good thing, well what I thought was important.

"Nonprofits and trade groups are stressing the importance of documenting any partnership with an investor to make sure these neighborhoods are maintained and begin recovery after the REO is sold. Most want documentation to ensure investors with poor management histories do not have access to bulk transactions."

REO Investors Squeezing Out Owner Occupants

So, if investors are buying, and we're trying to make sure they care about neighborhoods, I suppose that is better than just letting properties sit vacant. But, I'd certainly rather see home owners buying and enjoying the rewards of home ownership instead.

I Keep Telling Everyone ~ Now Is The Time To Buy!

2011-11-28T11:19:00.000-08:00

Okay, maybe I'm harping on you all. Maybe you still think the market is going to drop...maybe it will.

BUT, LOOKIE HERE, NOW IS THE TIME TO BUY!

And, I'm not the only one saying so...it's an article with a video link too!

Good Time To Buy?

If you want to go back and find my mathematical example, have at it. The interest rates are low, prices are low, what more do you want?

When Someone Dies, Wonder What Happens To Their Home Loan?

2011-11-25T08:29:00.000-08:00

I just closed a Short-Sale for a newly widowed seller. It was an obvious situation. The spouse passes away, the survivor can't pay the mortgage. Instead of having a foreclosure on record, we maneuvered a settlement via Short-Sale.

But, what happens if your elderly father dies? And, you're supposed to get the home? And, what if there is a loan against the property?

"Under federal law, the mortgage must be allowed to remain in effect without changes when it passes from one person to another because of a death. This negates any due-on-sale clause in the mortgage."

Now, that's good to know, right? Yes. But, if you can't pay, or there are other people involved? There could be many considerations about what to do. It's good to know that the mortgage stays the same. However, you may need to consider foreclosure, Short-Sale, paying off heirs, etc.

This link shares the whole article that prompted my little post this morning:

Inheriting A Home ~ And, A Home Loan

I would definitely like to remind my readers that if you have an elderly parent, it is wise to make sure there is some idea ahead of time about what would happen should that parent die with a loan outstanding. And, advise you to consider it could happen at any time....sooner than you'd expect.

Pre-Turkey Day Stats for Santa Clarita Valley

2011-11-23T16:47:00.000-08:00

Same old news posting around so I decided to share the latest stats just before the Thanksgiving holiday....I suppose it's to remind everyone that we do have some things to be thankful for.

ACTIVE LISTINGS ~1143
REO's ~ 160
SHORT-SALES ~ 510
Everything Else ~ 473

IN ESCROW ~ 787
(I include Pending and Taking Back-Up Offers here)
REO's ~ 160 (weird, huh)
SHORT-SALES ~ 497
Everything Else, again ~ 130

CLOSED IN LAST 30 DAYS ~ 295
REO's ~ 83
SHORT-SALES ~ 102
And, one more time...Everything Else ~ 110

So, I am again thankful that homes are still selling. I did finally have a buyer denied a loan in this market. Not my buyer, of course!

HAPPY THANKSGIVING, Enjoy what you have!

How To Figure Out Your Homes' Value Using The Internet?

2011-11-17T19:00:00.000-08:00

Hubby is out working, I just finished a delicious dinner salad. Opened a new escrow today, still waiting to hear back on another offer out. Closing a listing escrow Tuesday. So, obviously, settling in for the evening. Thought I'd peek around and see what's interesting in the news, etc.

Came across an article that is so right on. "How To Figure The Fuzzy Math Of Internet Home Values". There are several websites that give Zuestimates on a home value. Some sellers like to start here before they talk with a Realtor about possibly selling their home. I say, right on, again! I want my clients to have as much information as possible about what they think their home is worth before I even walk in the door!

But, I want them to get it from a reliable source.....(yes, that would be me).....before they make a firm decision.

Zillow, Realtor.com, Trulia...and several more will certainly assist a seller in determining an approximate value, but they have self-admittedly found numerous errors in their calculations. I'm glad they admit them.

Now, they have gotten much better, trust me. I used to hate going into a home that the seller met me with "Zillow says my house is worth xyz!" When xyz was significantly higher, or lower, than my knowledge presented.

And, Realtor.com, they were weeks behind. They are better too!

All of them are getting better....but, they are not perfect. And, neither is any Realtor that says they are. We can show our stats of list price ratios to sale price. We can show the market as it stands now, and 3 months ago. We can suggest, based upon our experience, where we think the market is going to be in 3 months. We can tell you what our marketing plan is. And, because we are the ones that are pounding the streets, seeing the inventory, working the escrows....we know significantly more than a computer algorithm.

Enjoy the full article:

How To Figure The Fuzzy Math Of Internet Home Values

When the House-Hunt is Taking too Long

2011-11-14T11:35:00.000-08:00

I'm one of the most patient Real Estate agents I know. I work hard to try and keep my buyers patient about the home buying process as well.

Sometimes there just doesn't appear to be a home out there for them. Sometimes they think they should write an offer on something that really doesn't suit their needs.

A great article for those of you that think it's taking just waaay tooo long:

Five Ways To Course Correct When The House Hunt Takes Too Long

These 5 items noted are good, appropriate and justified.

But, sometimes, the right house just doesn't come along at the right time ~ therein lies the need for patience.

After all, it is a Virtue!

Don't Worry ~ You're Probably One of The Many!

2011-11-09T08:30:00.000-08:00

The Internal Revenue Service is still struggling with the tax credits that helped boost the housing market a few years ago. And, the article I read today made me giggle.

Why anyone, IRS included, would put together a program without considering all the T-crossing and I-dotting required is beyond me.

Now, they are asking people for money that don't owe it. And, not asking people for money that do. Had to hire an outside agency ~ more money wasted ~ to try to figure out if people still lived where they were supposed to, if they owe it or don't. Yikes!

More Problems Are Found With The Home Buyer Tax Credits

But far more commonplace, according to auditors, were shortcomings by the IRS in distinguishing between taxpayers who were supposed to repay their credits over a 15-year period — as required under the original $7,500 program in 2008 — and people for whom there was no such requirement under later versions of the program allowing credits up to $8,000.

So, you know who you are and you know what you owe. Don't fret if you get the wrong notice from the IRS, a lot more tax-payers are too!

Triggers of Lender Scrutiny ~ A Refresher Course

2011-11-04T13:53:00.000-07:00

I know I've touched on this before, but it bears repeating, repeating, dare I say it .... repeating.

I read this article in the NY times this morning. Feel free to read the whole thing via the link below:

Triggers Of Lender Scrutiny

At any rate, people are talking about how hard it is to get a loan these days. Only until this month did I have someone denied for a loan that I was working with. Not one of my buyers, one that was purchasing a listing of mine. Regardless, it happened. And, it happened because the paper trail that needed to be followed just got narrower and narrower. So minute, that the lender couldn't follow it any more. So, poof, he was gone. No worries, we got another buyer in 48 hours!

So, really, just stick to the basics. Don't do something fraudulent, or even attempt something round to fit in a square hole. It's not going to work these days.

Loans of today are far different than loans of years gone by. And, when it comes down to that last few days of escrow and the damn lender is asking for things you feel are redundant and downright stupid? Just do it, send them what they ask for.

You won't get your house if you don't!

Home Price Depends On Interest Rate, Yes?

2011-10-31T14:24:00.000-07:00

I just read another doom and gloom article. It, of course, depends on the hour, the day, the author, the locale, and more.....as to whether I read a doom and gloom or something more upbeat about Real Estate.

Earlier in the day I received an update about Interest Rates on mortgage loans.

So, I did a few calculations that I am going to jot down, share, and summarize.

For simplicity, let's use round numbers and a conforming conventional loan ~

Home price $350,000
Current rates 4.00%
20% down payment.
Monthly payment = $1336.70
Finance charges over the 30 year loan life = $201,235.49
Total cost of home = $551,235.49

Next example ~ let's say with a 10% drop in value that some say may still happen.....

Home price $315,000
Future interest rates 5.00% (that's a guess, as of course, we have no idea!)
20% down payment.
Monthly payment = $1352.79
Finance charges over the 30 year loan life = $235,004.67
Total cost of home = $550,004.67

And another example ~ with a total of 50k drop.....eeeck!

Home price $300,000
Again guestimating a future interest rate 6.00%
20% down payment.
Monthly payment = $1438.92
Finance charges over the 30 year loan life = $278,012.58
Total cost of home = $578,012.58

I don't think I have to summarize this that thoroughly ~ I believe it shows you how much you save on a home price can frequently be eaten up on the interest rate you are paying. I've been involved in Real Estate for over 30 years, as a Realtor for over 10....I've never seen rates where they are right now for a 30 year fixed mortgage...never. And, I do believe that will go up more likely than going down much further.

You can do the math, as they say....and do I even need to mention the tax benefits of home ownership?

Video of You? And, Maybe Win a $500 Lowe's Gift Card!

2011-10-28T11:13:00.000-07:00

I received this via e-mail this morning and wanted to share with my peeps!

~~~~~~~

October 28, 2011

Dear Lauren,

In August, we had the pleasure of announcing C.A.R.’s brand-new 2011 consumer advertising campaign, “California REALTORS^®. Champions of Home.” It’s been airing on cable, TV, radio, and online. Today, I’m thrilled to kick-off the campaign’s social media effort, C.A.R.’s first-ever Facebook contest, called “Stories of Home.” This contest features a new app built specifically for this campaign, one which enables consumers to automatically and easily record evidence of their testimony about “home,” and the value of home ownership and of working with their REALTOR^®.

Now through Nov. 30, 2011, California home buyers and sellers with a Facebook account can either submit a video to compete for a $500 Lowe’s gift card, or simply vote for their favorite videos. Building on the effectiveness of the commercials in which California home buyers and sellers talk about the invaluable qualities of using a REALTOR^®, the Facebook contest helps to extend this message into the social media realm and offers satisfied home buyers and sellers a place to sound off about their own positive experience.

To participate, consumers simply visit C.A.R.’s Facebook page and “like” the page. Selecting “Stories of Home” from the left menu provides prompts to either record a video on the spot or upload a previously recorded video. Additionally, visitors to the Stories of Home page may view other videos and vote for their favorites.

This is a terrific opportunity for you to tell your clients to be a part of this exciting contest and have a chance to win a $500 Lowe’s gift card.

For complete information about the 2011 consumer advertising campaign, please visit here. I hope you are as pleased with this campaign as we all are in bringing it to you.

Sincerely,

Beth

Beth L. Peerce
2011 President
CALIFORNIA ASSOCIATION OF REALTORS®

~~~~~~~~~~~~~~~

Isn't that nice???

Awesome News ! ~ HARP Refinance Program Expanded

2011-10-24T11:00:00.000-07:00

This is a really good thing. I just had a homeowner ask me about this over the weekend. It's giving us a better LTV ratio and helping with a few other things. Also extending til end of 2013!!

HARP Refinance Program Expanded

Borrowers who are current on their home loans may be able to refinance for lower interest rates, even if they are seriously upside down. The Federal Housing Finance Agency (FHFA) announced today that it will broaden the scope of the Home Affordable Refinance Program (HARP) by removing the current 125 percent loan-to-value cap for fixed-rate mortgages backed by Fannie Mae and Freddie Mac. Other program enhancements include, among other things, reducing certain fees, eliminating the need for a new property appraisal if the FHFA has a reliable automated valuation model (AVM) estimate, and extending HARP until the end of 2013. New federal guidelines for the HARP changes should be released to mortgage lenders and servicers by November 15.

The basic eligibility requirements for an enhanced HARP loan are as follows:

Existing mortgage loan must be owned or guaranteed by Fannie Mae or Freddie Mac. To check whether a borrower has a Fannie Mae or Freddie Mac loan, go tohttp://www.makinghomeaffordable.gov/get-assistance/loan-look-up/Pages/default.aspx.
Existing mortgage loan must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
Existing mortgage loan cannot have been refinanced under HARP previously (except for Fannie Mae loans refinanced between March and May 2009).
Current loan-to-value (LTV) ratio must be more than 80%.
Existing mortgage loan must be current, with no late payments in the past six months, and no more than one late payment in the past 12 months.

More information is available from FHFA athttp://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf.

If At First You Don't Succeed, Try, Try Again!

2011-10-21T14:58:00.000-07:00

I've had very few borrowers denied for a loan. Certainly not once I already have them in the car. But, now and again, a buyer will contact me and I always refer them to a couple of lenders to determine if they can, or can't buy a home. And, of course, how much they are able to spend and still be comfortable.

When someone is denied there is usually a pretty quick reason why. There are generally some things that, over time, can be corrected so that they will be able to buy a home in the near future. Once in a while, speaking with a different lender may make the difference too.

Some lending institutions have softer guidelines than others. Some can fit the square peg in the round hole. But, those instances are few and far between these days. Most lenders have pretty specific rules and regulations that they must adhere to.

There was an article in the NY times last week that may help answer some of your questions about what you can do if you are denied a loan. Sometimes I haven't even met the buyer before they are denied so I can't make these suggestions to them:

What To Do After Your Mortgage Application Is Rejected

All is not lost if you are denied, listen to the advice you are given by your trusted Realtor and financial advisers. Now may not be the time for you, or you may need to make some mini changes....or you just may need to find another lender.

Allowing ALL Homeowners the Opportunity To Refinance

2011-10-13T10:58:00.000-07:00

It was, and still is, a great idea to allow underwater homeowners to refinance to current low rates. People that are in adjustable loans, to fix their rates. People that bought with a 5% rate or above, could get 4 or below right now. On a 300k loan, that would save the borrower almost 200 per month.

But, is that enough to keep someone in their home? Hmmmmm....., lost your job, 200 isn't much. Cut back at work, 200 still isn't that much. Home upside down, is 200 a month worth it?

Or, for the many that can still afford their home, but are completely upside down....those ones that are seeing the defaults happening, the ones that are obviously the 'strategic defaults'? This group would probably be pleased with saving 200 per month. And pleasing some helps many. Pleasing even just a few helps avoid additional defaults and subsequent foreclosures.

It doesn't surprise me that one of our Californian senators is pushing to get these tweaks in the refinance program to work. And, really, whether the bank is earning 4 or 5 or 6%, wouldn't they rather earn something, than nothing? Well, yes, they get help when they have to foreclose. But, certainly the recovery would be faster if the foreclosure rate was reduced.

Full article that prompted my sharing of thoughts with you today:

Senators Call for Immediate Action

30 Day Stats and Spaghetti Tossing

2011-10-07T14:36:00.000-07:00

I had to go back and look so I could compare to what was last month-ish.....

I read my blog post twice:

ACTIVE ~ 1189 ~ exactly the same as last report
REO's ~ 173
Short Sales ~ 523
Standard Sales ~ 476

In Escrow
PENDING &/or BACK-UP ~ 822
REO's ~ 140
Short Sales ~ 516
Standard Sales ~ 163

And, drum roll please......
SOLD in last 30 days ~ 294
REO's ~ 78
Short Sales ~ 97
Standard Sales ~ 117

And, just in case you were wondering....183 listings either cancelled, expired, or withdrew from the MLS.

Short-Sales are the majority of active listings, but not the majority of closed escrows. We need more REO's and Standard Sales.

Don't hold out for a short-sale....keep looking, and definitely keep throwing the spaghetti to see what sticks!

Really....You Need To Buy NOW!!

2011-10-06T12:21:00.000-07:00

Mortgage Interest Rates*

Rates as of Thursday, 6th October, 2011:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	3.875%	4.19%	$4.70	4.25%	4.44%	$4.92
15-Yr. fixed	180	3.5%	3.79%	$7.15	3.75%	3.99%	$7.27
7-Yr. fixed ARM	360	3.25%	3.51%	$4.35	3.875%	3.61%	$4.70
5-Yr. fixed ARM	360	2.875%	3.59%	$4.15	3.25%	3.66%	$4.35
VA 30 Fixed	360	4.5%	4.81%	$5.07	4.875%	5.31%	$5.29
FHA 30 Fixed	360	4.0%	5.39%	$4.77	4.5%	6.02%	$5.07
20 yr fixed rate 417,000	240	3.75%	4.21%	$5.93	4.625%	4.98%	$6.39
10 yr fixed rate 417,000	120	3.25%	3.61%	$9.77	4%	4.54%	$10.12

Courtesy of Mitch Milat with Augusta Financial ~ (661) 810-3362

Yes, There Are Still Homeowners That Have Equity

2011-10-05T09:39:00.000-07:00

Rainy, reading day today. Have a few moments to catch up and the 4th article I read was just an uplifting report. So needless to say, I share with you.

While we have been engrossed in the news of how many homeowners are underwater, what we are doing to transition back to a normal market and how long it will take? We do need to remember that there are still many homeowners that do, in fact, have positive equity in their homes.

Most Homeowners Still Faring Well

Of course it depends on where you live and how long you've lived there. That's an obvious given fact. But there are still plenty of people that survived the housing 'bust' and still have equity.

I wish more of these people wanted to sell their homes. Yet, it is understandable that they want to recapture some of the equity they feel they have lost based upon prices 5 years ago....when they didn't sell.

Again I preach, that Real Estate is like stocks, bonds, mutual funds.....you need to be in for the long haul.

So, feel a tad good today....knowing there is still some equity out there. It may not be yours right now, but hang on.....it'll be in your house someday.....I promise.

Conforming Loan Limit Reduced

2011-09-30T12:44:00.000-07:00

We heard it was coming...now it's here. The conforming loan limit has dropped by $100,000.00! That means anyone borrowing more than that will pay a higher interest rate on a portion of their loan, as of October 1st.

Okay, so big deal you're thinking? It truly is. Anytime money becomes more expensive it bumps some people out of the buying market. And, we need as many people able to buy as possible now.

The interest rates are ridiculously low now, although they have been bouncing around the last week or so. The inventory is still out there. High enough to find something. And, yes, we still have a ton of short-sales, but they are moving along much quicker than a couple of years ago.

First time buyers are in their new place.....just about 4 months. A short-sale seller.......closing escrow in a little over 3 months from listing date.

As long as the agent is doing what they are supposed to be doing, it does move along. Under price? Problem. Can't get in? Problem. List it right, allow them to see it, follow the process, be diligent.

And, buyers, get pre-approved now. But, if you're looking for a larger loan.....better double check with your favorite lender to see if your rates are changing as of tomorrow.......

Should You Buy Investment Property?

2011-09-18T10:24:00.000-07:00

I'm reading on Sunday morning before it's time to head out to meet clients. This morning an article about investing caught my eye so, of course, I share some highlights and a link to the full article.

Six Mistakes Housing Investors Make

Most important is that someone who is considering becoming a landlord needs to be very aware of the expenses associated with rental property. It's not just a 'watch the money come in' scenario.

I was a landlord years ago, hated it. But, it did help with my income taxes, so for 8 years we tolerated it. But, the stress of owning something so far away was challenging so we let it go. Now, I wish I still had it.

Recently, I became a landlord again. Felt that for my retirement, Real Estate was a good investment. But, fortunately for me, I knew what kinds of pits I'd possibly fall into. What types of costs I may entail. How a tenant may react. So, I was ready.

The old adage that plan on having the unit rented 11 out of 12 months I believe still holds true. Also, if you are purchasing a new property to turn into rental income, you have to determine ALL costs associated with the purchase and what your continued costs will be to make certain that the investment will be, at least somewhat, profitable for you.

Renters like nice places too. Hi-end rentals should be expected to be kept very well maintained. And, there will be expenses associated with that maintenance. There will be tenants that seemed good, and turn into a horror. Move swiftly on your actions to remedy a bad tenant. Be certain to follow all the laws when writing your lease agreement. Keep money aside for repairs and move-out costs as well.

In this year, 2011, I believe the most important thing to note about becoming an investor/landlord, is that, right now, there are a mother-load of tenants out there. True, their credit isn't the best, by far, but there are a lot of prospective tenants out there. Now, fast-forward a few years when people are buying again that lost their homes.....hmmm.....there will be many vacant investment properties. Some will get sold, some will go vacant.....and many will have to reduce their rates to get those few tenants into their property.

Make sure you can afford it.

Just like stocks/bonds, Real Estate is an investment for the long-run. Yes, some do make money flipping houses, but that's not a regular scenario. Long term investment in stocks/bonds and Real Estate....that's the ticket.

Obama's Broad Refinancing

2011-09-12T09:51:00.000-07:00

I know, I know, there's a lot of Obama bashing that goes on, but he has a point with his Thursday pledge.

If every mortgage holder, every bank, every financial institution that doesn't want to process anymore short-sales, doesn't want to take back, via foreclosure, any more homes.....and really doesn't want to process any more loan modifications.....if they would just drop every home owner that is over 4.5 % in their interest, maybe just 1 point? And, people that are in an adjustable, if they fixed their rate to current rates.....or slowed the rate of increase to 1/2 % vs. 1 % per period....wouldn't that keep more people in their homes?

And, keeping more people in their homes....will help end this vicious cycle that we are in?

Just my thoughts. I'm not an economist. Don't know how this would effect the rest of the population, just seems to me it would be a quick, simple solution.

Why can't we just cut everyone a break? And, stop defaults of any kind. Quickie article link below:

Obama Pledges To Work On Broad Refinancing Program

Loan Modifications Should Be Getting Easier

2011-09-07T12:46:00.000-07:00

I read the below article just a bit ago. Two great sites to help home-owners obtain a modification on their loan.

Note, specifically, you do not need to pay someone to do the process for you and they may not be looking out for your best interests...only their paycheck.

Take a few minutes to read the article, I did. It's worth it.

------------------------------------

Helping Homeowners Get Lower Mortgage Payments

Wednesday, September 7, 2011

By Evan Nemeroff

With unemployment rates remaining at high levels and foreclosures continuing to be a prominent problem nationwide, real estate analysts have suggested that borrowers should consider a loan modification to prevent them from losing their property.

Tools have been created that help streamline the loan modification process to assist distressed homeowners receive quicker approval from a servicer regarding reducing their monthly mortgage payments.

Hope Now Alliance has developed a web-based tool called Hope Loanport that is used by HUD certified counselors and state housing financing agencies on behalf of homeowners to submit their application to a servicer.
Since Q1 2010 when the porthole had six servicers in nine metropolitan cities registered to use the product, there are currently 14 servicers using the solution nationwide. This number represents over 80% of all loans serviced throughout the country, said Larry Gilmore, president and CEO of Hope Loanport.

The mortgage servicers who are now utilizing Hope Loanport include JP Morgan Chase, Citi Mortgage, American Home Mortgage Servicing, SunTrust Mortgage, Wells Fargo Home Mortgage, Ocwen Loan Servicing, Saxon Mortgage Services, Bank of America, Bayview Loan Servicing, OneWest Bank, PNC Mortgage, GMAC, Nationstar and MetLife Home Loans.

In addition to these servicers, there are also 2,400 counselors from approximately 600 HUD certified organizations who can submit a loan modification case at any time through the web-based system. Financing agencies in Arizona, Maryland, North Carolina and Ohio also are authorized to transmit completed applications through the
system to mortgage companies on behalf of at-risk homeowners who are facing foreclosure.

“The options we have for a borrower is a huge benefit because one of the biggest challenges during the loan modification process is the ability to communicate with a servicer,” Gilmore said. “With our system, there is ongoing communication and status updates between the borrower and our counselors and state agencies to inform the borrower about what is happening with their case.”

Gilmore said out of the 25,000 applications currently in the modification porthole, approximately 16,000 are pushed to servicers for them to make a decision. He said by using this system, the full modification process takes about 33 to 34 days. He added that not one document has ever been lost through the web-based system since its inception.

“Hope Loanport is being used primarily as a secure medium to provide a borrower with a standardized application and push this to an entity, whether it is state housing financing agency or an actual servicer, ensuring that no documents are lost and used to make the overall process more efficient,” Gilmore told this publication.

All applications on the porthole system are date stamped to track when the claim was formed, when servicers received the application and any problems that occurred during the process. This time tracking mechanism provides “more transparency to the application process so there is no confusion as to what is exactly needed to provide the servicer an actionable file to determine if the borrower qualifies for assistance or can receive a modification,” Gilmore said.

There is no fee for a borrower to submit a loan modification application to a servicer through this third party agent. A borrower can find the closest counselor or state agency near their home by visiting the Hope Loanport website.
Another free web-based loan modification tool that was recently launched to assist distressed homeowners is Modassist.
This tool allows a borrower to fill out modification documents in less than an hour and then submit the application to a loan specialist who will review the paperwork to make sure it is accurate. The specialist will also attach additional information to ensure the banks look at a fully completed claim so it can go straight to an underwriter for approval.

“Modassist will open the lines of communication between a borrower and a bank because the application was submitted to them with completed paperwork,” said Maz Badie, the creator of Modassist who has 14 years in the real estate industry focusing on foreclosure prevention. “Most of the times a package sent by a homeowner to a bank has incomplete paperwork, but that will not happen if a borrower uses Modassist.”

With Modassist, the entire modification process from when an application is completed by the borrower all the way through the bank responding to the claim takes about 30 days, Badie said.

“We want to work with the bank by keeping people in their homes and prevent foreclosures,” Badie said. “The process moves relatively quickly once it starts.”

Badie said the most important aspect for any borrower is to make sure the paperwork is 100% accurate before submitting it to a Modassist loan specialist. Any mistakes made in this process can “delay the loan modification and reduce your chances of approval,” he said.

Modassist will notify a borrower through e-mail when a completed packet is received. It will also follow up to confirm that a loan specialist has verified the application and processed the paperwork with the borrower's lender. The borrower will then obtain the bank's contact information, the date the application was first submitted and a log to keep track of statuses throughout the modification process.

Badie said Modassist's loan specialists have helped thousands of homeowners through this process and they want to continue assisting homeowners who are currently facing economic hardships.

“The market was initially flooded with modification scams and now it has become so regulated that no professional wants to do them anymore. In several cases, the party working on modifying the loan only cared about modifying the loan to any rate and payment, as long as they get their compensation for doing the work; that is a big problem,” Badie said. “The calculations need to be correct so the struggling homeowner can get an affordable rate and payment, ensuring that they won't default again on their mortgage six months down the road.”

----------------------------------
Is YOUR bank on that list?

Sheesh, What A Mess! Move Forward Already!

2011-09-04T12:11:00.000-07:00

Everything I am reading today has a 'He-Said, She-Said' feel about it.

Government Bail-outs. What agency is suing what bank. What bank is being blamed for this or that mess. What people are complaining about regarding HAMP, Loan-Mods, HAFA, Short-Sales.

EEEEECCCCCCCKKKKKKK!!!!!

People, it is what it is! Move forward, the blame game isn't going to help. Take whatever steps we have to get through this. But, keep moving forward!!

Okay, I'm done......swear......

Santa Clarita Home Sales, Etc.

2011-09-01T08:26:00.000-07:00

I feel like I could just copy and paste my last post about SCV stats....but that would be cheating....even though it's practically the same. Same is good, right? Well, sorta.

Last 30 days activity:

ACTIVE:
1189
SS - 500
REO - 167

PENDING:
378
SS - 194
REO - 102

BACK-UP:
463
SS - 336
REO - 32

SOLD:
265
SS - 78
REO - 71

So, there you have it. Same ole', same ole'. No better, but no worse.

Onward and Forward!

It's Not Just The Lenders That Need To Help The Short Sale Process

2011-08-28T09:24:00.000-07:00

I haven't written a blog post in nine days. I've been busy. Part of that business has been chasing down a seller on a Short-Sale listing. (part of it.....I was camping at Big Bear Lake!).

California Association of Realtors is urging the large banks to make some additional changes to help expedite the short-sale process. Read the full article if you wish:

C.A.R. Sends Letters To Top Lenders

The letter has a list of issues that need working out. The best one, in my opinion? Pre-approve the short sale and price upon request, prior to the property being listed!

Regardless of the amount of things the lenders have been doing to help the process move along easier, we still have to have some issues with the home-seller themselves improving.

The homeowner needs to allow the property to be readily available for showing. The homeowner needs to have their documents ready for submission. The homeowner needs to respond to an offer in a timely manner. Just like in a standard sale.

However, the short-sale listing is always heavily weighted on emotions. Regardless of the reason for the short-sale decision, it is never a happy situation and working with that type of seller requires mountains of patience, compassion and perseverance.

As much as we keep telling the banks they need to improve the process, keep in mind, it's a team effort. Between the Realtors, buyers, sellers and banks. We have to work together.

It's About TIme Those Ambulance Chasers Got A Flat Tire or Two!!!

2011-08-19T12:13:00.000-07:00

I'm chomping on a salad for lunch and reading my RE news. And, it's a tasty tid-bit of salad and news, I'm satisfied all around!

California AG targets law firms in foreclosure rescue scheme!

Fantastic, California Attorney General finally went after those dang schemers that preyed on underwater homeowners. Promising them the moon and delivering nothing! And, costing the homeowner much needed money as well.

There are some isolated Real Estate agents that give Realtors a bad name....and then there are some Attorneys that make the rest of the legal practitioners look bad too!

If it sounds too good to be true? Remember, it probably is. I'm glad California AG went after the scoundrels!

Is Owning A Home Cheaper Than Renting These Days?

2011-08-17T15:20:00.000-07:00

According to Trulia it is, in 70% of Americas 50 biggest cities.

How could it not be right now? The home prices are fantastic, the interest rates are amazing, the deductions are still there.

Case in point is one of my listings. Cheaper to buy than rent! Amazing. Still challenging to close escrow on something....but if you've got the patience, why the heck rent?

Renting ---- earning equity for the landlord
Owning ---- earning equity for yourself....

Not a hard choice.

Trulia's Blurb.......

The Debt Downgrade For Mortgages

2011-08-11T07:46:00.000-07:00

So, we all went into a bit of a miserable mode when we learned that our country went from AAA to just AA+. Felt like we were failing in 4th grade. And, I wondered if we'd be able to find some good in this announcement.

But, of course, I am the 'Glass is 1/2 Full' Witzy, so I knew there would be something that would come of it that is good for people buying/selling homes.

Interest rates are even lower. But, they probably won't stay that way for a long time. Just like when you buy a home, if your credit isn't so great, your interest rate is higher than the next guy. So, with our rating drop, our rates, as a country will go up. And, we, as the people, will pay that somehow. And, most likely, consumer interest rates will go up to assist in that pay-off.

CNNMoney article here:

What The Debt Downgrade Means For Your Mortgage

Although many do still consider that home values haven't quite hit bottom, I do believe that with these low rates, it is time to buy. If you wait for bottom, you may have interest rates that are closer to the top than you can't afford to pay.

Another Bank Talks About Principle Reduction Program

2011-08-08T10:43:00.000-07:00

So, Ocwen Financial is now talking about principle reduction for underwater homeowners. Bank of America and Wells Fargo have been as well. Ocwen is taking an even more inventive approach. They want a share of the equity when the home value goes back up and the seller sells the home. Sounds fair to me.

Ocwen Financial Expanding Program For Underwater Borrowers

If we can get more people to stay in their homes, we can get through this sooner. People that can afford to pay though, still seem to have to pay. People that are not able to pay are getting the breaks. Don't get me started on that opinion....

At any rate, it seems like this is going to be full steam ahead with more and more banks.

If you are underwater, always call your mortgage company and see if they will be able to modify your loan. THEN, ask them if they are considering a principle reduction program.

Great Luck out there !

30 Day Stats in Awesome Town!

2011-08-02T15:34:00.000-07:00

When I look at the stats for Santa Clarita there will always be minor discrepancies. Generally input error, but I still keep up on the gist of what's happening even though truly I already know it as I'm out working with buyers and sellers daily.

Tuesday August 2, 2011 stats:

Active - 1182
Pending - 385
Back-Up - 489
Closed Escrow in last 30 days - 260

Still over 1/2 of each category is in distressed sales. Whether they are short-sales or bank-owned, that is what is carrying the majority of the inventory....still.

Not really news, is it? But, I like to keep you informed. Still status-quo. Still selling homes. Still lots to get through. But, we're still moving homes.

I Moved!

2011-08-01T16:54:00.000-07:00

Look for more blog posts coming this week.

Just letting you know I have moved to a different area in Awesometown !

Cash for Clunkers, Bulldozer's for Foreclosures

2011-07-27T21:10:00.000-07:00

Here late at night thought I'd catch up on some reading. Came across a very interesting way to get rid of some of the backlog of foreclosed upon homes.

Some banks, in many states, are actually donating some of the bank owned homes. Then paying to DEMOLISH them. Give the land to the community and, of course, get a tax write-off. They say it will barely make a dent in the inventory. But, it makes some good sense. If the home is that uninhabitable, and would cost an astounding amount of money to make it salable, the costs out-weigh the benefits, right? I'd say so. And, in the long run, every little bit of inventory that we can dispose of, whether by REO sale or bulldozer.....is again, a faster (by molasses standards) recovery.

Bank of America Demolishing Foreclosed homes!

Bank of America is the leader, with Wells Fargo, Citigroup and Chase considering going along this road as well. Not a ton of homes, a few thousand only.

I certainly don't think the values here in Southern California have dropped enough to warrant a bulldozer driving down Valencia Blvd, but I do know there are certain areas in our country where this 'Cash for Clunkers' type of demo would benefit very well.

Class Action Lawsuits For Auto Freeze of a HELOC?

2011-07-24T12:29:00.001-07:00

A couple of years ago the banks started freezing Home Equity Line of Credit (HELOC) loans. They saw the values going down and just either froze them or reduced how much the homeowner could then borrow. A great article in the LA Times, that I read this morning, suggests that it would be challenging for any homeowners in the midst of remodeling their home to lose what they thought they had, without a complete valuation by appraisal, to pay the contractors, suppliers, etc. And, therefor the lawyers are considering filing lawsuits....and, quite possibly, that there will be enough claimants for a class action suit.

Yes, I agree that would be a huge challenge if you were in the middle of a remodel. However, I also would suggest that many homeowners that had HELOC's were used as a 2nd when they purchased their home in the height. They may have paid down some of that HELOC already and the banks certainly wouldn't want them using any more of it since they are most definitely upside down. Freeze.

I also would think that many homeowners had opened a HELOC in the presumption of doing work on their house, paying for college, buying a new car. That type of thing. And, many of those homeowners that may not have contracted yet, chose to pull the money out....indicating they were going to use it for remodeling and putting equity back into the home.....when, as the market fell......they may have chosen just to keep that cash. Freeze them too.

Full article here:

Litigation Regarding Freezing of HELOC's

Now, mind you, I've got clients that are attorneys and I do believe they should fight for people that have been wronged. The good ones do. But, I do feel, all too often, we see legal situations where one party was really protecting themselves and another thinks there is a way to make a quick big buck. And, those attorneys? Me no likey.

If you think your value was high enough to keep your HELOC at the level it was, then fight for it, of course. If you are just going along with the 'bandwagon'? Think again. We've got enough troubles with the financial institutions now, don't we?

Zillow's Gone Public - Makes Big Bucks!

2011-07-21T07:35:00.000-07:00

Most buyers start looking on the web when they are considering a home purchase. There are so many websites available that it makes the house hunt a little bit more cozy in the beginning.

Zillow, not one of my favorites, has just released itself public. Just been sold public. Just had it's IPO, Initial Public Offering. And, it kicked butt! Article link below:

First Big Day Of Trading For Zillow

Zillow has been around for a while. Picks it's data from public sites and compiles it for generating a lead on a sale or a price value for an existing home. It's got everything you would want....but, it's not always accurate. Realtor.com wasn't always super accurate either, but it's better now. Zillow will get better as well.

So, great that something related to housing has made some nice big cash. Maybe they will be able to hire some more people and cut the jobless rate at bit?????

Does Your Agent Know The Neighborhood?

2011-07-17T09:26:00.000-07:00

I write about current happenings in the news, updated laws, sales stats. That kind of info. To keep my friends, family, clients, etc. informed.

The other day I heard a story about a home buyer that didn't find out until signing loan docs in escrow that there was a Mello-Roos on the home he was purchasing. I was shocked and asked who his agent was? They should have known was my comment. I think they should have known, I did as soon as he told me what track they were buying in.

I know the agent, they are a 'once in a while' agent. Which won't know about the areas that have and don't have and may have.....an extra property tax. And, that can be a killer.

I really thought the buyer just hadn't read his paperwork, his disclosures. Then I was told it was an REO, well they are exempt from certain disclosures. But, even if an NHD report wasn't ordered....I'd have warned my client before we decided to look at the property.

One of my peeps is peeking at properties on a free web-site that I have them set up on. Listingbook. She sends me notes, I send her notes. One she asks if we can see......I say "You know there is a Mello-Roos there of about 4000/year?" She says, uh oh, let's skip that one. Another client, really wants that neighborhood, mello-roos or not, so we adjust the price point we can go to accordingly.

You may want to do business with a friend, or a relative of a friend. Keep in mind, the home buying process is one of the biggest purchases of your life time. Do you want a Realtor that knows what they are doing? Or do you want to do a favor for a friend.

Just sayin'.....

LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED

2011-07-16T08:35:00.000-07:00

Another major win for homeowners attempting to complete Short-Sales was just put into law! This popped up in my e-mails this morning. Amid all the junk e-mail was terrific news from the California Association of Realtors....again!!!

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 lien holder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lien holders 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.

YAHOOOOOOO!!!!!

Bank Of America Equator Program Now Willing To Accept The Buyer in Back-Up Position

2011-07-13T20:41:00.000-07:00

Thanks to the California Association of Realtors (C.A.R.) for continuing to help agents and banks work the market as effectively as possible!

We get a C.A.R. Newsline on a regular basis and it helps to keep us current on Real Estate. This evening I had the glorious opportunity to read the quickie below:

----------------------------------------------------------------------

Short Sale Soundoff: BofA to accept back-up offers on short sale listings

Bank of America announced this week it will accept back-up offers on short sales and will allow the back-up offer to take over if the first buyer does not complete the transaction, without requiring the process to start again.

Under this new guidance, agents will no longer have to initiate a new short sale in Equator if the original buyer walks away from the transaction. Instead, the agent can continue with the original transaction in Equator and work with the same short sale specialist. The file will remain open and the paperwork that has been submitted will remain active. However, the buyer’s qualification and the offer price will need to be reviewed again if a back-up offer is used.

This new process applies only if there’s an available back-up offer when the original buyer does not follow through with the transaction. If a back-up offer is not ready to be submitted, the short sale will be declined. In that case, agents should return to marketing the property and initiate a new short sale in Equator once another offer is received.

In December, C.A.R. leadership met with representatives of Bank of America and asked the lender to accept back-up offers without starting the process over again. C.A.R. also has raised this issue with Fannie Mae, Freddie Mac, and Wells Fargo, and hopes they will follow Bank of America’s lead with this process.

------------------------------------------------------------------------

Oh, this is good. Not having to start the process from scratch will help move Short-Sales through the system much more quickly!

Keep Paying Your Mortgage That Has PMI and You May Get A Principle Reduction!

2011-07-11T10:50:00.000-07:00

'Wow oh wow' is all I can say!

So the PMI, Private Mortgage Insurer, is trying another way to keep underwater homeowners in their homes and give them some principle reduction as a reward. We heard a bit about the big banks considering that a while back but I've yet to see any actually start doing it.

The entire Housing Wire article is here:

PMI To Pay Underwater Homeowners To Stay Put

The homeowner will have to stay current for a 3 to 5 year period to start seeing the forgiveness but the Responsible Homeowner Reward program will work for some that can keep paying yet are considering defaulting since the value has declined so significantly.

Avoiding foreclosure, name of the game. The less we have in foreclosure, the more homeowners we can keep in their homes, the better for our housing recovery.

Makes me almost with I had PMI on my loan.....

Cash Buyers Can Borrow Against Their Home After COE!

2011-07-06T11:13:00.000-07:00

This is great news from Fannie Mae! We see plenty of people buying homes for all cash, now they can re-finance, looks like up to 70% LTV to pull money back out of the property and continue to purchase more properties (as in an investor). Or have their safety net back in place (owner occupied)!

It was a wise decision to allow this. Investors that have cash for one, can re-fi and buy another....and so on and so on.

Great news for the inventory. Great news to the banks that are holding 'shadow' inventory too! As long as there are ways to plow through this inventory of foreclosed homes, we can push them through the pipeline faster and recover faster.

Read the whole article:

Fannie Mae's Summer Surprise For All Cash Buyers/Investors!

Let's face it, we keep saying 'Cash is King!'. If you have cash and it's a competitive market, you'll generally beat out the other buyers. Everyone wants as fast a close as possible and cash can allow that. But, once you spent your cash...it's gone! Now, you can pull money out again and have gotten the property and have cash back in the bank!

I Get A Birthday Card, Not A Kick-Back!

2011-07-03T08:23:00.000-07:00

It's Sunday, getting ready for the gym. Trying to avoid the heat today by getting out of Valencia. Before I forget, Happy Independence Day tomorrow!

Today I picked up an article about RESPA. Someone is filing a class action lawsuit as they believe Realtors have been taking kick-backs from Home Warranty companies. Sheesh. Maybe, probably, hope not though!

Home Warrant Company Settles Suit Regarding Kickbacks To Realtors

Back in the day we'd have parties, get movie tickets, free drinks.

But those days have changed. I enjoyed the parties and occasional free movie but certainly didn't refer an affiliate because of that.

I actually had a loan broker say he'd let me sell his house if I gave him referrals. I told him, and this was probably 6 years ago, that I'd sell his house but only refer to him if I was confident he would do a stellar job!

I refer to a particular Home Warranty company because the rep has proven herself again and again. She has gone above and beyond for my clients on many occasions. I recommend a title company because the rep has been able to get things done when she is supposed to. Clear things that need to be cleared. Investigate as required. I prefer one escrow officer as she definitely asks 'How High?' when I need her to jump. Always, without question. My favorite mortgage broker? I can call him/e-mail/text any time and he responds pretty quickly....usually! LOL. But, never has he let me down, and really, I mean never.

And all of these affiliates are on the 'Witz' team because they perform to my expectations and beyond. They provide the exemplary service that I demand and expect for my clients.

I'm a bit OCD and so therefore I have to surround myself with a really good group.

And, what do I get from them for the constant referrals? A birthday card, maybe a little Halloween candy (that they give everybody!) and the knowledge that my clients are being well cared for.

Corrections Are Being Made In Mortgage Delinquencies

2011-06-29T11:18:00.000-07:00

If the delinquencies continue to drop, either early in the game or late, then we are seeing some recovery. In my optimistic eyes, we are.

Reading on HousingWire this morning an article about the lower percentages of early stage delinquencies. Lowest since 2008. Great! Still a lot in the inventory already being taken back by the bank. Or so late in the process that the homeowners just are waiting to lose the possession of their home.

But, the amount of home mortgages that are current, is at 88.6%. Phew, that's a really good thing.

Read The Full 'Housing Wire' Article Here

I think we are getting a handle on it. I believe we are still going to see a very lengthy recovery period. But, I think these are good signs that we are finally working in a right direction. That everyone, sellers, banks, Realtors and buyers, are understanding the process and helping, as best they can, to work through this market.

We all just have to...don't we now?!?!?

What's Selling In the SCV?

2011-06-26T08:11:00.000-07:00

Everything! There is so much hoop-lah about doubtful buyers, hard to get loans, challenging sales. But, people are still buying, sellers are still selling....and, yes.....60% of our market is still distressed sales.

Activity right now in Santa Clarita, per our local MLS:

ACTIVE : 1204
Standard Sales : 527
REO's : 152
Short-Sales : 499

UNDER CONTRACT (i.e.in pending or back-up) : 872
Standard Sales : 195
REO's : 147
Short Sales : 530

SOLD IN LAST 30 DAYS : 300
Standard Sales : 119
REO's : 84
Short-Sales : 97

Please continue to pay special attention to the number of active and under contract short-sales compared to the number of sold short-sales. They still remain a challenge! But, the number of closed escrows has bumped up a bit in the last couple of months. That's in our local news. By about 10%. That's great. The inventory has shrunken a bit, but here's to hoping we get more inventory soon!

Nice Mortgage Rates Again Today!

2011-06-22T09:37:00.001-07:00

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Wednesday, 22nd June, 2011:

	Term	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Yr. fixed	360	4.5%	4.49%	$5.07	4.5%	4.59%	$5.07
15-Yr. fixed	180	3.75%	3.99%	$7.27	3.75%	3.99%	$7.27
7-Yr. fixed ARM	360	3.5%	3.51%	$4.49	3.875%	3.61%	$4.70
5-Yr. fixed ARM	360	3.0%	3.59%	$4.22	3.25%	3.66%	$4.35
VA 30 Fixed	360	4.75%	5.11%	$5.22	5%	5.46%	$5.37
FHA 30 Fixed	360	4.75%	5.99%	$5.22	5%	6.02%	$5.37
FHA 5 yr fixed-arm	360	3.5%	3.62%	$4.49	3.75%	3.72%	$4.63
20 yr fixed rate 417,000	240	4.25%	4.71%	$6.19	4.625%	4.98%	$6.39

Valencia And Surrounding Areas

2011-06-21T14:35:00.000-07:00

As I read an article a few days ago, it suggested that we would not rebound til 2025. Yes, 2025. I spoke with some trusted associates about that statement and we all have to agree, it is still based upon locale.

Quite possibly the entire country will not be at the 2006 values until 2025. But, our lovely state of California posted a 12% increase in home sales. People still want to live here.

And, in Santa Clarita, they really want the amenities and community that we offer. And, 209 more buyers showed that just in the last 30 days.

We will rebound, ultimately. It will take Valencia some time, but we will rebound sooner than the entire country. We go up quickly and we go down quickly......Santa Clarita will go up quicker than most.

Good Karma !!

2011-06-17T14:12:00.000-07:00

I'm a firm believe in what goes around comes around. I try very hard to always do the right thing. Not to lie, cheat or steal.

And, I always have had a pretty charmed life. Not to say there hasn't been crap in my life as well. Death, Divorce...what's the other D thing? Don't know!

At any rate, I work hard, play a little, and make sure my peeps are taken care of. Clients know this, lenders know this, and associate agents know this also.

So, is it a wonder, that when there were 6 offers in total....my little first-time buyers were selected???

I'm so happy for them. But, I do warn them it's just the beginning. And, if this doesn't pan out for whatever reason....it wasn't meant to be.

Rock On Escrow!!!

New Loan that helps with what would normally be FHA buyers!

2011-06-14T15:29:00.000-07:00

I'm so excited!!! Thanks again to one of my favorite lenders I've got ways to help buyers even more! The FHA condo certification system is allowing many condo complexes to expire their FHA approval.

What does that mean? Means that if my buyer wants to buy in one complex and is doing an FHA loan, it may not fly. Also that my seller will have less buyers to choose from.

So, now we have a loan that is pretty dang close to FHA. Have to put down 5% instead of 3 1/2%, but heck, if you can buy what you want....I'm all over it.

Further questions? Shoot me an e-mail : Lauren@keepyourwitz.com

Online: Free HAMP Calculator

2011-06-13T16:39:00.000-07:00

As part of the family of Certified Distressed Property Experts I have access to additional tools that other Realtors may not.

The information below is one of the most recent bits I grabbed to share with my friends, family and clients!

-----------------------------------------

The Treasury Department is offering a free online calculator that helps borrowers estimate whether or not they qualify for the Home Affordable Modification Program ( HAMP).

The calculator is available at checkmynpv.com.

In the two years since its launch, HAMP has helped more than 270,000 borrowers receive permanent loan modification, thus lowering their monthly mortgage payments. That number falls far short, however, of the millions of homeowners at risk of foreclosure — which is bad for homeowners and bad for the housing market. The current glut of foreclosures — stalled by paperwork delays — poised to hit the market is already far more than can absorbed by first-time home buyers, according to the research firm Campbell Surveys.

That is why HAMP is so important. Every homeowner who modifies a loan and stays in a distressed property adds one less property to an already flooded market.

-------------------

We have enough inventory stuck up in the pipeline. It needs to be flushed through.

I hope at least one person reads this and is successful at a modification.

The Bank Wanted Money All Right

2011-06-08T09:02:00.000-07:00

I read through all my news again this morning. Same old, same old. We are struggling, but we are still hanging tough. Company opened doors to actually help people complete strategic defaults. Homeowners with HELOC's (Home Equity Line loans) are more likely to be in default. Nevada has lower rate of foreclosures, etc. etc. etc.

And, here I have that ready, willing and able buyer that we wrote an offer for last week? Remember, the one that was an REO, sitting for quite a while, we wrote @ 90%? Bank came back as a no-go, stand-firm, cough up or shut up kind of attitude. So, we walked away. The house just isn't worth what the bank wants for it.

And, we found a better one! A Standard Sale too! So, now we are waiting to hear back on that one.

Another client story? Yep, a SS one. Agent said she had another offer, still showing as active. She received out offer and yet still, of course, 4 days later, neither buyer that submitted has heard back. So, nice as pie, I left a message this morning wanting to know if the seller really wanted to sell? Waiting for a call back, I'm thinking she'll e-mail me instead.....

Then there's the new client, wants to see a couple properties, both in back-up on our MLS. Of course, only one is noted as such. The other? Hmmm.....SS, out of the area agent, e-mails me that there is an offer at the bank, but of course, it still shows as active. And, lo & behold, the seller hasn't returned my call about showing yet either.

Then, there's the standard sale listing I just took. YIPPEE, you'd think. But, it's a first time buyer type of place to purchase. Condo.....and, unfortunately the complex is not FHA approved....which is the loan program so many are utilizing right now.

I could keep going, but you will get bored. Basically, all things are status quo. We're working through it. And, we will continue to do so!

Open House Conversation

2011-06-06T13:03:00.000-07:00

Been away from my blog for too long!

Sat an awesome Open House yesterday with my favorite mortgage broker. We shall do it again this coming Sunday if you want to come visit. Click the link for further info.

Open House Again On Sunday!

The topic is the amazing amount of people that are looking to buy in today's market. The news states that the consumer is wary of purchasing but the buyers that came in yesterday are very interested in taking advantage of the low prices and the low interest rates.

The house I sat yesterday was worth well over a 1.3 or 1.4 million in the recent height. Getting it for under a mill, on the lake? Awesome!

And, the guests thought so too. Many, as usual for open houses, were looking at a lesser price range but still were impressed with what could be had for the price of the home we held open.

My mortgage broker discussed loan options with people, I discussed housing scenarios. We were a great team.

But, our discussions when there were no guests were the best. We actually had some time to discuss where he thought we were going, where I thought we were going. Pretty close in idea, pretty close. But, we both felt that the 2012 election would have an impact. AND, that things needed to change for our economy to re-build itself. And, that those things were obtainable.

For now, buying is awesome. And, I say hold onto your homes for 5 years if you buy now. Investor? Yowza, awesome time to buy! First time buyer, fantabulous!

And...... if your a Standard Seller, super nice!!!

Let's See If The Bank Wants Some Money!

2011-06-01T07:30:00.000-07:00

Working with lots of buyers right now. Wrote an offer for one of them again last night.

It's an REO (Real Estate Owned), foreclosed on by the bank last April. Yes, 4/2010! Listed about a year later on our MLS. And now, it's been sitting on the market for almost a month already.

So, we wrote an offer for 90% of list price, asked for some buyer closing costs. AND, it's an FHA loan so there will possibly be some lender required repairs as well.

I checked with the listing agent, no offers on the property. The agent also says the buyer has a better shot at seller concessions if we use their lender. Some 'in cahoots' action going on there, I would presume. I don't rightly care as long as the terms of the loan are the same and we get it closed on time and my clients get closing cost assistance.

So, what cha' think? Will the bank take the offer? Will they be happy that someone wants to take it off their hands? Golly, you would think so. But, as we are all aware, the banks think in mysterious ways!

Cross your fingers for my peeps!

Accurate Count of Active MLS Listings

2011-05-27T12:10:00.000-07:00

I vented my frustration on Facebook the other day. About the number of wonderful buyers that I am working with and not able to get them closed on a property. HELP!!! I screeched in written format.

The post brought to head a funny little thing that many are presumably missing......

What shows as active in the MLS, isn't truly 'Active'!

How could that be you say? Hmmm.....well, an example here:

15 homes on my buyers favorites list. About 1/2 of them are showing as taking Back-up offers. Of those remaining ones that are supposed to be truly active they are (1) Appointment Only with Agent or Occupant .....and they never return your phone calls to show (2) Drive-By Only, Write offer subject to interior inspection...they always are. (3) So obscenely listed at a low price, to get any offer submitted to the bank, they get buyers unrealistic hopes up. (4) Or, they already have an offer at the bank and are closing escrow in 3 days the agent just neglected to change the status in the MLS.

So, when we see almost 1300 homes available for sale? Don't get excited....sorry. In a normal market, that would be a beautiful, healthy inventory. In this one? Hah!, maybe 700 - 800 are really available for sale......

I Still Want To Live In Santa Clarita

2011-05-24T16:15:00.000-07:00

As much as my personal residence has been hit by the housing bust, or whatever you want to call it today, I still prefer to live in Santa Clarita than other local to Los Angeles areas.

We have just about everything. I do think, and my mother would agree, that we are still a toddler when it comes to 'The Arts', but we are growing. I'm actually going to see another production at our local Canyon Theatre Guild in a couple of weeks. Not much in the way of museums, but we only live 30 miles from some great ones!

And, the article on my Yahoo home page lists all kinds of things that can increase your homes' value. And, guess what? We have all those things right here!

Local Features That Can Boost Your Home's Value

1) Schools - We have great schools!

2) Parks - Wonderful parks and we use them!

3) Golf Course - We have, I lost count....3?

4) Pond or Body of Water - Castaic Lake!

And, they didn't mention the people! Santa Claritans are some of the nicest people! Well, most of them! LOLOL

So, if you are thinking about moving away since your house has lost value? Remember, we still are one of the best cities to live in! And, if you have to move, at least know that people move here because we are a wonderful community and Yahoo just pointed it out for us!

Sell an REO, Get a Bonus Through Freddie Mac

2011-05-20T09:11:00.000-07:00

Okay, there has been some news around, not sure if it's been publicised much, but there are some Realtor bonus' to be had for selling a Freddie Mac REO. And, some buyer closing cost assistance from Fannie Mae REO's too!

REO Bonus' and Incentives

Well, that's just dandy. Realtors that are working with buyers have probably already seen quite a few MLS agent remarks that reflect these added incentives. And, while I think that's super, I'd be happier if we just had more inventory to show. More REO inventory, less Short-Sale inventory.

Really, more traditional inventory would make me tinkled pink!

But, don't think your agent will only show you REO's to get that selling agent bonus. There just aren't enough of them to go around. Do expect a better house-warming gift though!

It's Tough Out There!

2011-05-18T09:21:00.000-07:00

I get articles e-mailed to me by several different affiliates, agents, etc. Every day. And, I read them....every day. Along with those L.A.Times, etc. articles I read every day. Ignoring the Schwarzenegger saga and the Sheen mess though, what a waste.

At any rate, I received one this morning that I read, laughed out loud at, and decided to share one last line of the article with anyone reading my blog.

NAR said only 6% of its members claim real estate as their first career.

NAR is the National Association of Realtors. So, obviously it covers our entire country. The article was about how, obvious again here, Realtors incomes have dropped in the last few years. Really! Of course, and so have a lot of other careers. It's Tough Out There. Everyone is having a hard time.

But, it also stated median incomes of Realtors, who is working, who is complaining, what some agents think is the miracle cure to more home sales...and therefor a more income!

And, honestly it was the last line that struck me...copied and pasted in red a few lines above....that only 6% claim Real Estate as their first career. My company? We have a heck of a lot of agents working, truly working, as Realtors.

And, me? I claim Real Estate as my one and only career. I don't work at it part-time, once a month, or when the mood strikes me. I work a schedule that my Real Estate coach taught me. Prospect, appointments, listing and selling Real Estate.

Make sure that the Realtor you hire is prepared to work in a tough market. That they work in an 'easy' market. And, mostly? Make sure that Real Estate is claimed as their Full-Time career. Not a hobby.

Retiring? Buy a Home with Your Friends!

2011-05-17T07:53:00.000-07:00

When I was younger one of my bestest friends, and her family, came to live with mine. We loved it! The reason wasn't a good one, but it was so much fun. She would call me and ask what I wanted for dinner. Our husbands watched sports together, we took the kids to the park together.

And, we always joked that at some point in our lives we'd buy a 'Dallas' (the old TV show) type house and they would live in the East Wing, we the West. Or vice-versa...can't remember ;o).

Reading articles this morning. Found one about retirement. And, knowing how stretched people are these days it was very on target. When people are scrimping just to get by it's hard to keep putting money in for retirement.

So one of the solutions was for two couples to combine living expenses, live together. Whether one of them owned a home or not. They would share the cost of maintaining one residence. Maybe rent out the other.

In my decade career, I've sold one home to a combining family such as that. And, it truly works for them. And they aren't even retirement age yet!

So, read the article below....and stop fretting about having enough money for retirement. Start planning on who ya gonna live with when your 70!

How To Retire When You Have No Retirement Savings

Seller Financing For Buyers With Poor Credit

2011-05-16T09:49:00.000-07:00

In the next few years, we already have many, there will be people that want to buy a home that have a foreclosure on their financial history. Who is going to lend them money?

There have always been sellers that will consider holding a note for a prospective buyer. Generally when they are slightly desperate to sell and move on, with no traditional buyers interested in their home.

It's happening already. See the story below:

Home Sellers Are Financing Buyers With Poor Credit - San Francisco Chronicle

Sellers need to be extremely careful. Contracts need to be written with expertise. My thoughts are there will be viable options for seller backed financing in the next few years but the reason for the foreclosure really needs to be investigated. And, the most popular scenarios aren't really the types that I would want to hold paper on.

But, if we get an influx of the Shadow Inventory all of a sudden, there will be plenty of somewhat desperate traditional sellers that want to sell and they will be competing against huge numbers of available homes.

Better start thinking now about how holding paper on your home for a buyer will work for you. And, have a Realtor and lender in your back pocket to help you out with credit reports and contracts! And, an attorney?That is a really, really good idea too!

Where You Should Look For Homes

2011-05-12T12:07:00.000-07:00

I'm eating lunch and reading articles. Always have to keep current on what's going on, what the home consumer is looking at.

There has been some chat today about how many errors there are on websites that prospective buyers (and some sellers) are looking at and how it affects my business. If something is listed as active and it's already sold kind of scenario.

Been a beef of mine for a bit, but I certainly don't lose any sleep over it.

However the article I read a bit ago prompted me to remind my blog followers about my favorite web program for home shopping.

LISTINGBOOK. It's completely attached to our local MLS. Updates information every 30 minutes. My clients can let it send them e-mails and they can also search on their own, 24/7! My favorite part of the program is the 'Favorite' section...and the 'Reject' section. We can communicate with each other on individual homes. Map and view photographs. Set-up showings, etc.

I have a lot of people that like to use Realtor.com and Redfin.com. I just don't find them to be as accurate as Listingbook.

Keep in mind though, none are accurate at all if the information input isn't correct. If you want to take a peek, click on the link below.

My Choice - Listingbook !

It's best if I set up the first search parameters for ya though!

Why I Push Re-Sale When Working With ANY Buyer

2011-05-09T08:44:00.000-07:00

I've been told that normal home-owners move every eight years or so. I've got clients that last two, and others twenty. So, I'm not one to say if that's valid or not.

However long my client thinks they are going to stay in their home one thing I always, annoyingly, do? Remind them about Re-Sale values. I may have touched on this before but the article on Yahoo this morning prompted me to touch on it again.

While you may not have good hearing, that railroad track might be considered loud to others. The electrical towers? A big turn-off for most. How about the barking dog next door? That one could move the next day so if you're okay with it, go for it. And, on the flip side, the beautiful cat that yawns in the neighbors window? Could be replaced with two huge Doberman's the next month!

But, since there are several things that are a turn off for everyone, listen to your Realtor when they keep shoving RE-SALE down your throats. They want your next move to be a good one too!

Seven Neighbors That Can Hurt Your Home

Enjoy!

Holding Numbers

2011-05-05T07:32:00.000-07:00

I read through the news this morning. All seems to be saying we are moving in an upward fashion on the home sales front.

Okay, still a tough challenge to get something closed, let alone an offer accepted. But, we are helping people, and that's what it's all about.

Stats measured this morning shows that we are holding together fairly the same. About 4 1/2 months of inventory.

1252 Active in Santa Clarita. 809 in Pending (or taking back-up offers). And 290 closed sales in the last 30 days. Still looking at a lot of Short-Sales. But, the banks are continuing to improve on the way home-owners in default are being cared for.

If we can continue to weed through the SS and REO's and close sales, all the better for the housing market.

State Bills Didn't Pass....But Will Try Again!

2011-05-02T10:35:00.000-07:00

Read this today. While I'm glad the first one is going to get re-addressed very soon, the second I'm not so sure about. We'd end up paying it back somehow anyway.

Wanted to share this important information with you though!

--------------------------------------------------------------------------------------------------------------------------------------------------------------------

California Foreclosure Bills Fall Flat with Committees

04/29/2011By: Carrie Bay

Both failed to pass despite the fact that supporters of the proposed laws packed the hearing rooms at the state Capitol, but neither is completely dead. They have both been scheduled for new hearings.

The California Homeowner Protection Act (SB 729) would make it unlawful for a lender to move forward with foreclosure while evaluating the borrower for a loan modification – the common practice referred to as “dual tracking.” The bill states that borrowers must be given a decision on their loan mod application before the formal foreclosure process can begin.

With a 3-3 vote, the SB 729 did not pass the state’s Senate Banking and Financial Institutions Committee. The committee’s seventh member declined to vote.

The bill, sponsored by Sen. Mark Leno (D-San Francisco) and Senate President Pro Tem Darrell Steinberg (D-Sacramento), will be re-heard by the committee on Wednesday, May 4

Across the way in the other legislative chamber, the bill (AB 935) introduced by Assembly Member Bob Blumenfield (D-San Fernando Valley) would have levied a $20,000 processing fee on banks and servicers for every foreclosure initiated in California.

The money would go into a “Foreclosure Mitigation Fund” and be disbursed to local schools, fire departments, and other community (government) service agencies in order to make up for lost property taxes and other expenses that arise from foreclosures, including maintaining the properties. Blumenfield says the statewide levy could generate up to $16 billion over the next two years.

AB 935 was voted down by the Assembly Committee on Banking and Finance, with four members voting against it, four voting in favor, and four members failing to vote. It will be heard again on Monday, May 2.

In the wake of the robo-signing scandal last fall, both bills have garnered strong backing from constituents, consumer advocacy groups, and grassroots organizations.

A Little Tid-Bit of Sunlight !

2011-04-28T13:58:00.000-07:00

I finished my prospecting late today and am reading articles just now at almost 2 in the afternoon! But, it was worth catching it a little late as it will carry us to a happier spot for a smidgen!

It was on Housing Wire. A short little post. Teeny little segment that states delinquencies in the first quarter are improving. Just a slight improvement, but still, I'm taking it.

You can read it quickly yourself :

Delinquency Rates Improve Slightly in First Quarter

Interesting that they predict a slight increase in delinquencies for construction loans though. Well, why people would consider building new homes right now is beyond me anyways. But, I suppose if they could get it built in less time than it takes to consummate a short sale, then maybe it is a good idea.

Regardless, a shimmer of light at the end of this week.

Let's relish it!

Rent Vs. Buy - Are People Really Changing Their Minds About The Value of Home Ownership?

2011-04-25T09:37:00.000-07:00

A lot of articles are saying that the American public is starting to shift away from the theory of owning a home being one of the best things ever. At least that's what many are saying.

Me? I still believe that true home ownership has incredible value. Not as an investment like stocks, bonds and gold though. Only play the housing market if you have a lot of cash to gamble with. Rewards of true home ownership come from the long-term. The love of your home, the tax write-offs, the credit health of keeping your mortgage current.

Those are all pluses. There are many more.

I was prompted on the subject of this post by an article I read this morning on Realtor.org. About strategic defaults. People that are current on all of their other financial obligations and are just deciding to default on their mortgage because it's not worth it anymore.

Not going to kid you....I despise this concept. Absolutely and completely. And, so do the lending institutions. They are going to try to determine, by a new technology tool, which people are more likely to default strategically than others.

Many Borrowers Have Strategy To Defaulting

While it won't help the current situation, it will help eliminate it in the future. We always learn from our mistakes.

Back to Rent Vs. Buy. My personal example here:

Sold back in 2006 my prior residence for 670,000. Now, those homes are selling for about 400,000. Bought my beautiful home, the first all by myself, for 610,000 right then and there. Now, it's worth about 375,000. Sheesh! Yes, I know, it stinks. But, many people are in this same boat.

Can I still pay my mortgage? Absolutely. Do I still love my home? You bet. What about the lost value? Shit happens!

But, in reality, do the math and it works out pretty equal in my eyes.

I would have paid about 36,000 year in rent, right? That's 180,000 over the last 5 years. Wow, that's a lot of money going into someone else's pocket. But, you say, that's still a huge loss in value on my current home. Well, take the 180 from the 610 and we have 430. So, I'm still 'upside' down by about 55k? Ah well, I've been writing off the interest and property taxes for the last 5 years too. And the Uncle Sam tax rate I pay is minuscule in part, large part, because of that. Truly teeny-weeny!

End of story. End of my story at least. I still believe that owning a home is far better than renting. I believe that what goes around comes around too. I borrowed money from someone, I can pay it back....I'm going to enjoy my home and pay back my debt. I'm soooo not hip on Strategic Defaulting. I'm still totally hip on Home Ownership!

Today's Real Estate Market: a 'Once-in-a-Generation Opportunity'

2011-04-22T14:15:00.000-07:00

“This economic crisis, while similar to the Great Depression, is also unique in the way that the housing market played a central role,” Rand said. “It is true that this is a once-in-a-generation crisis. It is also true that this is a once-in-a-generation opportunity. It’s time to focus on the other side of the coin.”

According to Rand, a little optimism can go a long way toward spurring real estate back to life.

“There is a very real economic force called irrational pessimism that is the cause of much economic hardship, not the effect,” he said.

“More people are unemployed because successful businesses are afraid to expand. More people are losing homes they can afford because they are underwater and believe their home will never appreciate again. People with job security are convinced they don’t have it and live in fear,” Rand explained.

He insists, “Irrational pessimism is one reason why today’s situation runs so parallel to the Great Depression.”

Rand contends there is no housing meltdown. Rather, there was a media and Wall Street meltdown centered on a predictable housing correction.

The real estate market changes hourly, he says, and investing in real estate is a matter of watching the trends.

“It comes down to the idea that no matter how the markets change, no matter which way the winds shift, people will always need a place to live,” Rand said. “That’s been true of America since the first log cabin.

“If you plug into that concept and leave fear in a box on the shelf, you can be ahead of the curve and ride the wave of the trends that matter,” according to Rand.

OwnAmerica is a Web-based resource for real estate investors and investment advisors headquartered in New York.

Rand is also on WABC Radio, a regular commentator on the Fox Business network, a columnist for Real Estate magazine, and author of the book “Crash-Boom” from Career Press.

Banks Making Money

2011-04-21T11:44:00.000-07:00

I've been reading, what else is new, the headlines again this week. Every day I've seen that one big bank after another has a profit in this first quarter. Of course, not in their mortgage department I would presume. But, some profit is better than none.

I'm guessing some if it is from the increase in credit rates to consumers. Not mortgage rates, they are still nice and low. But, most people have seen a huge jump in their credit card interest rates. They say that it has something to do with amounts being charged off. Written off losses. That kind of thing. So, is it a false gain?

I'm not sure really how I feel about this. Is it good that the banks are showing a profit? Is it bad that we're paying for their screw-ups? At this point, I'm happy that the financial industry isn't underwater completely like so many homeowners.But, I'm just uncomfortable that the big banks are showing profit and the little common people are seemingly barely scraping by.

But, I am glad, really glad, that the amount of 'good' loans are improving.

We always learn....sooner than later I wish. But, we always learn from our mistakes.

What do YOU want to know?

2011-04-20T16:40:00.000-07:00

I spend time researching and reading and writing. I spend time looking for listings for my buyers and buyers for my listings. I negotiate, educate and protect.

It's who I am and what I do.

Anyone that has read a blog post or two of mine can tell that I'm the genuine article. That I tell it like I see it and I don't hold back.

I believe that is the way it should be. I believe that honesty, to a fault sometimes, is the best. And, I believe that my client knows the absolute best for their family and that I am just a conduit to help them obtain their goal.

And....I like it like that.

But, I would like to know sometimes what they aren't telling me. I listen, I probe...but some people certainly are not as bold as I.

So, you who read this. You that know me. Or you that want to get to know me.

What do YOU want to know about me and what I do?

Commercial RE Rebounding

2011-04-18T11:11:00.000-07:00

Our Realtor magazine had a refreshing piece of good news about Commercial Real Estate today. Says it is coming back. People are buying buildings. California is not noted yet. But, loans are being paid.

Commercial Market Exceeds Forecasts

It will be nice when we see this rebound happening here in California, and in Santa Clarita for certain. Right now, and I'm sure you see it too, there are a lot of vacancies in our commercial sites.

But, if Commercial RE comes back, and people are moving money around, that is good news ultimately for Residential RE in my eyes too!

So, crossing my fingers for this continued rebound making it to our Awesome Town!

The Loan Mod and the Foreclosure Proceedings

2011-04-17T09:10:00.000-07:00

Many consumers are attempting a loan modification to keep their home. They are having the same challenges Realtors were having in working with the banks on Short-Sales (SS).

One hand not necessarily knowing what the other is doing.

We Realtors have dealt with this many times, so in the last few years we learned very quickly that we, not the SS bank, had to keep track of what the foreclosure department was doing while we were navigating a SS for our clients.

This morning in the LA Times Real Estate section was a very good article about homeowners struggles with loan mods. Thinking they had stalled the foreclosure only to find them foreclosed upon when they had submitted their package two or three times and were waiting for another contact from the bank telling them they were missing yet another document.

Banks Foreclose While Homeowners Wait For Loan Mod

If one person reads this article, then one more person I have helped to stay in their home. It's a good article. Not necessarily a life saver, but remember that when you are attempting your one and only loan modification to save your home, us working Realtors have dealt with this over and over again.

Keep track of what is happening in all departments of your lender. Make sure that the Loan Modification department is getting what they need, no matter how frustrating. Always call them, don't wait for them to call you, to verify receipt. And, ALWAYS, keep track of what is happening in the Foreclosure department.

Nothing could be worse than to get foreclosed on the same day you receive notice that you have been approved for the loan modification that saved your home.

What Kind of Law? Real Estate They Said

2011-04-13T16:25:00.000-07:00

I spent some time with one of my husbands new clients this week. He had done a really big job for them and the very next day they needed some additional help. When I take a few hours of free time, I also like to spend it with him. I know, we are still Newlyweds! I had heard that it was in an attorney's office. I go in there all quiet like and chat up the receptionist just because I like to chat, right? So, I ask 'What kind of law do you practice here?' I'm told, Real Estate law. Hmmm......what do you mean?

I proceed to find out they they are the lawyers that are helping people sue their banks. You know, those same people that committed fraud on their loan documents? THOSE PEOPLE!!!

Now, I did not jump to complete conclusion, trust me. I asked a few questions further. Suing banks you say? Yes, for people that can't get loan mods, or short-sales, or that didn't read the fine print on their loan application.

Now, I'm sure that there are definitely a lot of the public that do really need some legal assistance. But, these guys? Ambulance chasers. Needless to say, they are new in the business, just opened bigger offices. And, a few years from now....where will they be? Looking for some other type of Ambulance to chase.

Ugh! Okay, nuff said!

How Long Does It Take To Close A Short Sale You Ask?

2011-04-11T17:38:00.000-07:00

Finished up with clients and personal stuff for the day. Spent the last few minutes looking at the stats and thought is was time to share again.

As of this posting in our lovely Santa Clarita Valley we have 1222 active properties available for sale. Yes, that includes Single Family Dwellings, Condos and Townhouses. From Acton to Stevenson Ranch and Newhall in the south up to Castaic in the north.

Of those, and I make no guarantees regarding the listing agent input in our MLS, 539 are Short-Sales, or in some point of Pre-Foreclosure. 151 are REO's, Real Estate Owned by banks or investors. Presuming the remaining are standard sellers. Sounds pretty familiar doesn't it? Yes, about 60% is still bank involved.

We have 831 properties under contract, 831! Meaning a buyer and seller have come to negotiated terms of purchase. Of course....there are seller and buyer contingencies. Right now, the most common being the approval of terms by the Short-Sale lender. So, it makes sense that 491 of those are SS, and only 147 are of the REO type.

Wonder what the number of properties that sold in the month of March, 2011 was? 275. Yep, 275. That would mean we have about four and a half month inventory. That's nice. Of those 275, 77 were REO's and 94 were SS's. Hmmm.......what's that mean?

Well, this is the proof in the pudding. The DOM, Days On Market is important here. The average was 156 days on market. An average of just over 5 months to close a purchase on a SS. The longest was 557. Sheesh. I've avoided that but by the grace of god as they say!

So, while yet again, we would consider this to be a healthy inventory market. And, only 123 properties were taken off the market in that month of March. It still requires dedication and patience to make a house a home in 2011.

But, some of us are doing it And, with interest rates still low, it's best to keep that patience and hold onto that dedication. You will have a home......but I certainly can't say sooner than later at this point in history.

Don't Fall In Love

2011-04-10T08:17:00.000-07:00

I'm working with first time buyers. There are a lot of them out there right now due to the low interest rates and low home prices.

And, of course, I'm showing short-sales. I show them, I write on them, I keep showing them.

And, sometimes a client falls in love too quickly and is heartbroken. Just like our first boyfriend (or girlfriend).

We thought we just had to have Johnny as our prom date. That we just couldn't live without him. We made promises with the devil to get him......but he went out with Sue.....not us.

Takes a bit of time to get over that first lost love, doesn't it? But what keeps you moving forward...looking at Billy, Shane, Robert and more!

And, that Johnny guy? Doesn't it turn out that he really wasn't the right one for you anyways?

Don't fall in love with the first home you write an offer on. If you like it and can live in it, write an offer. But, don't let it break your heart if the short-sale doesn't go through. Your best home is yet to come!

And, Johnny turned out to have a bad heart anyways....just like bad plumbing in a home!

More Money For Californian's

2011-04-06T09:00:00.000-07:00

So here I am again, reading and reading some more. Just about every day I look around to see news related to Real Estate. And, there is always something.

Today this article I found on the Housingwire site:

Calhfa Expands Eligibility For 2 Billion Foreclosure Prevention Program

Can't say how well, or if it even will, help some of us in California that are struggling to stay in our homes. But, while a lot of us complain about what the government is doing, at least they are trying to do something!

If you read the article, you'll note that very few servicers are working with this program. I can only hope that more will come on board.

The monies that they are offering are plentiful. And, I think they could definitely help a handful of people keep their homes. A handful you say? I know, but I believe every little bit helps.

Kudos to Cal HFA!

More Homeowners Need to Use HAFA

2011-04-03T09:48:00.000-07:00

If you are facing foreclosure, or think you may be? Try a Short-Sale through the HAFA program first. Attempt a loan mod, if it doesn't work, try a HAFA short-sale.

The more homeowners that can utilize the HAFA program, the faster they move along, the better and quicker recovery the housing crisis will have. I am so sick of that 'housing crisis' phrase. But that's exactly what we have going on.

Although the treasury admits that the HAMP and HAFA numbers are dismal, they are better than nothing. I'm a 1/2 full, rather than 1/2 empty gal! Any way that we can get more people to not foreclose on their homes, the better. The less inventory that goes back to the banks, all the better.

I read a great article on Housingwire.com this morning. It truly mirrors my feelings:

Treasury Releases First HAFA and Second-Lien Modification Numbers.

WE can't move forward until we clean up our mess.

It won't be left behind.

Now, I'm certainly not saying that the HAFA program will expedite everyone's situation. But the more that try it, the faster we move on. The more homeowners that stop peeking from behind their curtains, that hope their problems will go away miraculously some how? If these homeowners would attempt to utilize some of their options...? We'd have less of that (another phrase I dislike) 'shadow inventory'.

I know there are plenty of people that have stopped paying their promised mortgage. Some can still definitely afford it and are considering a strategic default just because their property had dropped in value. And, others simply cannot make those payments. Many are just enjoying a free place to live until the bank comes to take it away. I hate that. Really bugs me. I'm upside down myself, but I love my home so I keep paying the bank back the money I borrowed from them.

At this point, it's a question of morals and ethics.

If you can't afford your home, call me. Let's try and do a HAFA Short-Sale to get you out of trouble. If you just don't want to pay the bank what you owe them? What goes around comes around....be careful going around that next corner in your life!

Banks Mortgage Servicing Plan

2011-03-30T10:05:00.000-07:00

This article I picked up today was about the banks actually having a better way for the consumer to keep track of their loan modification status'....and more!

They are self-admitting, it would appear, that they have been screwing things up. Good, admission is the first 'step' towards a healthier lifestyle. And, these banks certainly could benefit from squeezing the 12 Step program into just one.

Banks Offer Own Mortgage Servicing Plan

However , I'm pro-mortgage reduction plans by these institutions too. They are losing tons, costing them arms and legs, and taking all-together too much time in bringing our housing crisis out of this crappy status.

Let's say they just give all homeowners a certain amount, 25%, reduction in the mortgage balance. Would that eliminate the 50% loss by taking back a property? Maybe. Would it eliminate some of the strategic defaults? Maybe. Would it help people stay in their homes? Quite possibly.

THEY ARE MEETING TODAY!

Can't wait to hear the outcome.....