foreclosure (107)

Janesville, WI Foreclosure Listings

WI Market Update

Here is today's market update for Active foreclosure and bank owned home MLS listings located in Janesville Wisconsin. This information was pulled from the South Central Wisconsin MLS on 2/14/2012 at 2:50 P.M.

  • 26 total Foreclosure|REO|Bank-Owned home listings in Janesville, WI
  • Low listing price: $45,500
  • High listing price: $679,900
  • Average listing price: $118,167
  • Median listing price: $84,000
  • Average days on the market: 82

There are some fantastic deals available right now! Of the 26 foreclosure listings in Janesville, 19 of them are listed for under $100,000. These numbers change on a daily basis, so to obtain the most up to date information, please contact us directly at 877-774-7625 or email us at Info@RockRealtyWI.com. If you are looking to buy a discounted home in Janesville Wisconsin, we would be happy to customize the search further for you to find the home that is just right for you.

As an extra benefit to Rock Realty home buyers, we offer a 1% broker commission rebate after closing. This could mean $2,000 back on a home purchase of $200,000. We love to hear how these rebates help our clients. Some use them for home improvements, while others simply put it in savings for future needs. It is a great option that we are happy to offer. Contact us for further details and limitations.

Original Post - Foreclosure Listings - Janesville, WI

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Cupertino Distressed Property Watch 2011

It's the beginning of the year so time for the round-up of last year's distressed property sales in Cupertino. So here's what happened:

 

Single family and condo townhomes :

Total sales:  453

Short Sales: 21

REO:            11

Distressed sales as a percentage of total sales: 6.8%

Compare to 2010

Total sales:   844

Short Sales:   31

REO:            33

Distressed sales as a percentage of total sales:  7.6%

 

My conclusion:

The percentage of distressed properties in Cupertino is virtually the same  between 2011 and 2010. Also a 6-7% distressed property sale percentage is not large enough to affect values. What is interesting is the number of total sales in Cupertino is significantly lower in 2012 than 2011.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

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Please share some tips on how to become approved with asset management. I can share some tips from my personal experience. I have just basically attended every netowrking event out there. Join REO networking groups, talk to other agents who have already established relationships with AM's. Also, becoming an area expert an learning the local tenants laws and how they apply to your potential assets. If you have more to share, please do. Thank you!

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It's the beginning of the year so time for the round-up of last year's distressed property sales in Sunnyvale. So here's what happened:

 

Single family and condo townhomes :

Total sales:  835

Short Sales: 111

REO:            73

Distressed sales as a percentage of total sales: 22%

Compare to 2010

Total sales:   849

Short Sales:   106

REO:            89

Distressed sales as a percentage of total sales:  23%

 

My conclusion:

The percentage of distressed properties in Sunnyvale is virtually the same in Sunnyvale between 2011 and 2010. This percentage is starting to have an effect on prices, east of El Camino. However in the 94087 zip code there were 11 short sales and 3 REOs in 2011 compared with 4 short sales and 2 REOs in 2010 out of 295 sales in 2011 and 307 sales in 2010. While short sales almost trippled in 2011 the percentages are still very low compared to the other zip codes in Sunnyvale. 

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales

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Using a FHA 203k Loan to Purchase Foreclosures

This is an excerpt from a book I am writing called "Buyers Guide to Foreclosures"  (generic title but to the point).

Financing can be a major hurdle for some buyers wanting to purchase a foreclosure because of the condition of the home, which may keep it from qualifying for conventional or traditional FHA loans. The 203k is a great option. I encourage all agents to familiarize themselves with this loan program.

There are two types of FHA 203k loans. There is the Streamline and the Standard.
The Streamlined is used for homes that need minor repairs such as replacing a roof or flooring, interior and exterior painting and HVAC system replacement or upgrades (doesn’t really sound like minor repairs). This loan has a maximum rehab limit of $35000 with no minimum. Therefore, you can make repairs that cost as much as $35000 or $5 - but you really wouldn’t need the loan if you only plan to make $5 worth of repairs. The rehab funds are placed in an escrow account with half dispersed to the contractor up front and the remaining funds released after the repairs are completed and inspected.
The Standard 203k is for homes that need major repairs such as structural and/or foundation repairs, adding a room to the home and major landscaping improvements. With this loan, the total rehab cost must be greater than $35000. There is a $5000 minimum of eligible repairs or improvements required, such as structural repairs, termite damage, etc. After the initial $5000 is met, the remainder can be used for cosmetic repairs and upgrades. Again, rehab funds are placed in escrow and are released as repairs are completed and inspected. The Standard also allows up to six months of your mortgage payments to be included in the rehab costs if the Housing and Urban Development (HUD) consultant determines that you must be displaced during the repairs.
The 203k loans can be used to purchase a 1 to 4 unit residence. To qualify the borrower must occupy the home as their primary residence. Maximum loan limits are based on property type and location. Also, luxury items such as installation of a swimming pool, hot tub or barbecue pit are not eligible.
 
New Year, New You. www.livefitandhappy.com
 
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Mountain View Distressed Property Watch 2011

It's the end of the year so time for the round-up of distressed property sales in Mountain View. So here's what happened:

 

Single family and condo townhomes :

Total sales:  563

Short Sales: 62

REO:           34

Distressed sales as a percentage of total sales: 17%

Compare to 2010

Total sales:   572

Short Sales:   50

REO:            34

Distressed sales as a percentage of total sales:  15.5%

 

My conclusion:

The percentage of distressed properties in Mountain View is a higher in 2011, 17% as compared to 2010, 15.5% but the majority of these distressed properties are in the lower price range of Mountain View sales so are being purchased by investors and first time home buyers. West of El Camino is not seeing much distressed property activity.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales

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San Carlos Distressed Property Watch 2011

It's the end of the year so time for the round-up of distressed property sales in San Carlos. So here's what happened:

 

Single family and condo townhomes :

Total sales:  357

Short Sales: 24

REO:           18

Distressed sales as a percentage of total sales: 11.7%

Compare to 2010

Total sales:   312

Short Sales:   17

REO:            10

Distressed sales as a percentage of total sales:  8.6%

 

My conclusion:

The percentage of distressed properties in San Carlos is a higher in 2011, 11.7% as compared to 2010, 8.6%. However, at this point the percentage is still ow enough not to have a major effect on property values.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

 

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales

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There are approx 2,169  Las Vegas Foreclosures for sale in the Las Vegas area per the local MLS.

This is for homes without contracts on them.

Foreclosure sales pending and homes with contracts on them are at .... 2,594

401 Foreclosure sales have sold so far this month.

This year approx. 15,400 foreclosures have sold in the Las Vegas area.

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Some direction for your short sales

Today I got a call from an agent about a short sale I have listed. In talking I mentioned the current owner is not in default to which he countered "but he must be." I am here to tell you from experience, from closings, from approvals in my hand your client does not have to be in default to obtain an approval for a short sale. If the mortgage co tells you they must be ask them to show you in writing where this is their policy so you can show your client 9 out of 10 can't and this will get you past this hurrdle..
Myth #2, I get all the time, "once I short sale I can't get a mortgage to buy for some time." INCORRECT!! In July of 2011 I executed and closed a short sale on my listing and the same client was approved to purchase a new home and closed 3 weeks later. There is no rule that says you can't, if you keep your current mortgage current and the person negotiating your short sale gets an approval that say lender is going to except short sale as mortgage paid in full. We supplied the payoff (actually both it was a first and second) and credit showed always paid on time client upgraded to bigger and better house for same payment and maintained good credit.
This point brings me to myth #3 "it doesn't save me any to short sale I should let my house go and save my money."  NO NO NO! See above scenario if you bide your time and pay payments till your agent can negotiate a short sale for you, you can save your credit by paying your payments and getting that payoff showing paid zero balance! Just because a bank didn't go after your friend for his foreclosed home doesn't mean they won't come after you and garnish your wages, freeze your bank accounts, or harass you till you can't stand it any more. Problems don't just go away a short sale is a proactive solution to an economy induced problem.
Myth#4 I make to much money I will not get granted a short sale....you can make 500k a year and still be granted a short sale on your house and here is why. You bought 123 Apple St for 700k 4 years ago now it's worth 200k as it stands with you in it, looking nice and clean and put together. HOWEVER if 123 Apple street is foreclosed and then has chance to be stripped down or vandalized the bank knows it will then only be worth 100k so they are better off letting you short sale then risking another foreclosure on their books which will be supported when appraiser goes out and does BPO. This also disproves myth#5 that "I owe way to much compared to what home will sell for bank will never do it." I closed a home that had a $750k loan on it but appraised only for $295 so bank allowed the short sale after they did their bpo and we sent copy of FHA appraisal.
Myth 6 my agent is a "short sale expert" I'm here to say I have been doing short sales since 2006, I was taught by a bank how to structure and execute them and still I am not an expert and I'll tell you why. You can not be an expert at something that changes with every file, every day. You can be very good, you can be excellent but not an expert. There is no such animal for short sales.. I give the example that a short sale is like a snow flake, every single one is different! I have closed one in two weeks YES TWO WEEKS but in the same token I have had one take eight months. The eight monther was a first and second for a divorced couple with a husband that claimed bk on the second but none the less it took eight months to get to closing. I am great at them and many others are too but be wary of the self proclaimed expert as often they over promise and underperform.
These are all just my experiences as stated earlier there are many others out there and every file differs but I think education is important as many agents are telling people they can't when in fact they just don't know yet that they can! :-)

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Short-Sale

You've read about Mc Farland, Wisconsin short sales online or maybe you have heard about them on TV. Now you are wondering if this could be a good option for your Wisconsin house. In simple terms, a short sale is a process in which your bank agrees to accept a sale amount on your home that is lower than what you currently owe. There are many reasons why you might consider an option like this.

  • Your home is 'underwater'. You currently owe more on your home than what you could sell your home for on the market.
  • You have recently experienced a financial hardship. These hardships can include losing a job, under-employment, recent medical expenses, divorce, or a death in the family.
  • You are falling behind on your mortgage payments or may soon have to. Your monthly expenses exceed the amount of money you are bringing home.

Whatever the reason you may have to be considering a short sale on your Wisconsin home, we would be happy to help you evaluate your particular situation. Rock Realty has helped many Wisconsin homeowners work with their bank to come up with a resolution. Feel free to fill out our no obligation online form for further assistance.

Short Sale Home Evaluation

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East Palo Alto short sale

 

There is another conflict brewing between investors and first time home-buyers, and this time the home buyers may win. In the more affordable areas of the Silicon Valley distressed properties, ie short sales and reos have been popular with investors and first time buyers. Many would be owner occupiers lose out on great opportunities to investors who have all cash.  Since condos are the least expensive properties, have the fewest maintenance issue,  and tend to bring in more rent per dollar spent they are popular with investors. Coupled with the more restrictive lending practices on condos, many bay area developments are now in a position where the number of owner occupied units has fallen to a critical level. Owners of these properties are having trouble refinancing and buyers trying to get loans are being rejected by the lenders.  As a result, many complexes are starting to pass new HOA regulations limiting the number of rentals allowed in the condo development.

These restrictions can be a double edged sword.  If they occur in a building where the delinquency rate on the HOA dues is too high then a buyer will not be able to get a loan anyway and it will effectively cut off all sales.  In the future when the market has settled down the rental restriction could put a damper on future sales.  However, if they are not instituted it may become impossible for anyone but investors to purchase in some condo complexes, which in itself will lower values not to mention make things harder for the first time home buyer. It will also make it impossible for current homeowners to ever refinance in some of these buildings.

I do not have the answer here as to what is right or wrong here. I can only give some advise on what to do if you want to purchase or sell a condo and want to get the information about potential rental restrictions.

1. Ask your agent to find out if the HOA docs are available yet.  If it is an reo they most likely will not be and a

short sale very likely not

2. If the docs are not available before you make an offer ask your agent to ask the listing agent for the number of the HOA management company

3. Call the management company and ask about any current or contemplated rental restrictions

It is not that hard to find out and can save a lot of time and possibly money.

If you have any questions about short sales in San Mateo or Santa Clara Counties please feel free to contact me.

 

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

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Michael Collins has just returned from Madison, WI where he completed a highly specialized course in Short Sales and Foreclosures conducted by the Council of Residential Specialists of the NATIONAL ASSOCIATION OF REALTORS®.
FOR IMMEDIATE RELEASE


PRLog (Press Release)May 06, 2011 – Michael Collins - Broker (608)921-8536
Mike@RockRealtyWI.com
www.RockRealtyWI.com
MICHAEL COLLINS COMPLETES SHORT SALES & FORECLOSURES COURSE

(Janesville, WI) --- (6/10/2010) --- Michael Collins has just returned from Madison, WI where he completed a highly specialized course in Short Sales and Foreclosures conducted by the Council of Residential Specialists of the NATIONAL ASSOCIATION OF REALTORS®.

SFR-Short Sale Foreclosure Resource

This course is one in a series of professional education sequences required to qualify for the coveted Short Sale & Foreclosure Resource (SFR) designation. The Short Sale and Foreclosure process was presented from the standpoint of the real estate professional working with Buyers and Sellers. The one-day course addressed the challenges of working with Short Sales, introduced essential tools to assist Sellers through the Short Sale process and provided counseling strategies for working with Buyers and Sellers of distressed properties - all intended to ensure the professionalism of residential sales associates in handling these types of sales.

"There are many approaches for assisting clients through the difficult and emotional
transition of the Short Sale and Foreclosure process,” said Collins, "and I have
already begun to apply the strategies covered during this course in my work at Rock Realty.

The Council of Residential Specialists Courses are presented throughout the U.S. in
affiliation with the NATIONAL ASSOCIATION OF REALTORS®, as part of its on-going
program of promoting the professionalism of the residential sales associate.

# # #
Rock Realty is a brokerage that specializes in short sale and foreclosure properties. Our broker, Michael Collins is SFR (Short Sale & Foreclosure Resource) certified. We would be happy to help you buy or sell a home in Southern Wisconsin!
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Case Shiller: Thoughts From Around The Web

Optimists

AP

A wave of foreclosures is forcing down home prices in most major U.S. cities. But economists and real estate agents are noticing what they call a key first step for any housing recovery: a drop in the glut of homes for sale in markets hit hardest by foreclosures.

If we were to see several consecutive months of supply getting smaller, it would point to an improving housing market, said Celia Chen, senior director at Moodys Analytics. Even if it is investors buying them, they are renting them out in hopes that prices in the next several years will rise.

NAR

According to the latest Realtors Confidence Index, the gap between the indices of Prospective Home Buyer Traffic and Prospective Home Seller Traffic has narrowed, with an increase in Prospective Buyer Traffic. A continuation of the narrowing of the gap between buyer and seller interest would be favorable to the strengthening of real estate markets nationwide.

In many cases, and in recent years, market prices have already declined substantially. The size of the shadow inventory, mortgages, 30 days overdue or in foreclosure, suggests that problems may not be resolved for two or three years. However, the shadow inventory is declining in size and we may be near the end of continued price declines in many markets. Chart

Pessimists

Standard and Poors

There is very little, if any, good news about housing. Prices continue to weaken, trends in sales and construction are disappointing. says David M. Blitzer, Chairman of the Index Committee at S&P Indices. Ten of the 11 MSAs that recorded index lows in January fell further in February.

Wall Street Journal

The enormous supply overhang of existing homes (particularly factoring in all those in foreclosure or soon to be) promises to keep pressure on prices for some time, said Joshua Shapiro, chief U.S. economist at MFR Inc. From a longer-term perspective, it is important to keep in mind that in the seven years leading up to the peak in July 2006, the nonseasonally adjusted national 20 city home price index jumped by 155% (126 index points)… So far, this index has dropped by 32% (66 index points) in the 55 months since the peak.

I could fill the page with pessimists, hardly a positive thought out there today. I think the most positive take away is that at least this is an orderly retreat, rather than the kind of screeching declines we have seen.

 

Thanks For Reading

www.yourpropertypath.com

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Reconveyance Deed & why it might be important to make sure it happened!!!woman standing there pointing to a deed


I should explain what a reconveyance deed is to help make some more sense of this.  Anytime there is a loan on a property (at least in California), there is a deed recorded on the property.  Then when a loan is paid off against a property, another deed gets filed (reconveyance deed).  That type of deed shows that that lender no longer has interest in the property.
 
In my real estate world, I normally don't watch for that type of activity.  It's a behind the scenes thing that gets done after we close escrow, which makes sense because I am making sure my seller gets their home sold or that my buyer gets in the property they purchased. 

The loan against a property is what the title company handles, they send money (full payoff or agreed short payoff in a short sale) to those lenders & then either that lender will file a reconveyance deed with their own "prefered" title connection (which will then end up at the county) or they will send that reconveyance deed to the title company that closed the escrow & have them file it thru the county.  Either way, I don't follow up with these lenders to make sure they did their reconveyance deed. 

It seems like realtors might want to start doing that or maybe at least following up with the title company to make sure it's done.  It sure can cause a lot of issues down the road if it wasn't done properly.
 
I recently had a buyer (15 months ago) purchase a short sale in Tracy CA & the bank forgot to do their "reconveyance deed".  Not sure how you forget, but I guess there are humans at Chase Bank that didn't get it done.  About 6 months ago, my buyers started getting foreclosure notices addressed to the prior owner.  Of course she didn't live there & my client kept sending the mail back as "return to sender". 

Mr & Mrs Buyer got concerned a month ago because Fed Ex packages started being dropped off on their door step in Tracy.  A process server came to their door & wanted to speak to the old owner.  Now that's when it got serious.  Thankfully my buyer went to the local Chase bank, title company, county recorder's office & started pokeing around to get to the bottom of it.  They received an "investigation" fax number to Chase to send their documentation to show they owned it & to leave them alone.  

It must have worked because a week after they faxed to this "investigation" number, a RECONVEYANCE DEED was miraculously filed with the county recorder's office & the phone calls have stopped.  Now I think I should probably follow up on all my closed escrows to make sure this happens to alleviate any of my future buyers dealing with this sort of shenanigans. 

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Screen-shot-2011-03-24-at-2.12.42-PM-380x196.png

Truly shocking news this week for our real estate industry.

Weakness across the US. Biggest weakness in all home prices other than ‘first time buyer’ (or investor) ranges. The much hoped for uptick in spring home sales won’t happen.

Bottom line: its going to get worse before it gets better. Be ready..

* Double Dip in home values is here. Home values are falling faster…by a larger percent NOW than anytime in the last 12 months. In other words, massive negative momentum.

* Newly built homes plunged 17%. 250,000 new homes sold in Feb..a new record low.

* New and existing home prices down. New homes down 9%. Spread is nearly $60,000 between a new home and a resell. Killing new construction.

* Mortgage apps are at record lows

* 33% of all buyers are cash.

* FHA loans are getting more expensive in April.

* More foreclosures coming in the next 30-60 days. Banks are speeding up the paperwork.

* Huge inventories. 5-6 year supply of homes for sale. Enough homes for sale NOW to supply the market for the next 5-6 YEARS. That is not taking into account the number of homes coming on the market..shadow inventory.

* Homes have depreciated more during THIS housing crash than even The Great Depression.

* The most striking numbers: vacant homes. The 1990 census found 10.3 million vacant, and 10.4 million in 2000; in 2010, 15 million were empty.

* Gary Shilling expects home values to fall…nationally…by ANOTHER 20%!

And now, to the Video..

New home sales fell to a historic all-time low and all signs seem to be pointing to a double dip in the housing market, reports CNBC’s Diana Olick. Brian Westbury, First Trust Advisors, and Gary Shilling, A. Gary Shilling & Co., discuss.

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Although there are many techniques and tricks for being a successful MortgageFieldrep, in our conversations with hundreds of MortgageFieldreps over the years,I have identified the following seven habits that help create lasting success.it1. Providing Quality Service: Most fledgling mortgagefieldreps focus on quantity instead quality because they feel that they will make a lot more money having a long list of clients. Although true, it is also important to consider that if you have a client with a large inventory, providing quality service would go a long way in separating yourself from your competiters. Your clients will also take notice and consider giving you additional coverage area to get more orders. Many successful Mortgagefieldreps find out from their clients what are some issues with the vendors that they can help resolve. Having the proper training is key for you, your staff and subs; and fieldservicetraining.com is the best place to start.2. Promote widely: Many successful MortgageFieldReps rely on a wide range of promotional methods (e-mail marketing, blogs,REO Pro, MortgageFieldRep.com, and pay-per-click advertising), since various promotional methods work well with particular demographics.3. Promote seasonally: Successful MortgageFieldReps tend to vary the services they promote based on the season. Clients tend to seek reps that can thoroughly complete numerous winterization orders in the winter season on there assets.4. Persevere through hardship: Many novice MFR's tend to assume they cannot be successful if their initial attempts to work with a new client don't go well. Nothing succeeds like perseverance. Stick to it and don't allow early disappointment to deter you. Many of our most successful MortgageFieldRep's have attained success after disappointing early results.5. Broaden your portfolio of services: In general, all services don't do well at the same time. When some services are doing well, other services are not. Promoting a variety of services will allow you to benefit by smoothing out the peaks and valleys in the lifecycle of each service.6. Proper Documentation: Since your commissions depend on the proof you can provide to your clients, it's very important for you and your subs have the tools you need to be successful. We strongly recommend you look into a great tech company to provide you with a streamlined system. With the ammount of photos,forms, and notes that have to be taken per day on each property, things can get chaotic quickly. We have a partnership with a variety of different service providers, so you can visit our site and have a look. If your client needs information on a particular property, you want be able to provide it with a few clicks of the mouse.7. Referral Source: In a business that continues to change, it's important to have access to a long list of clients. Its equally important to know where to look. Years ago we only had the phonebook to rely on to source our new clients. In recent years, it's safe to assume that the worldwide web is where you can do most of your research and networking. We have some partners that can cut the time you spend on this crtical activity in half. If you want to succeed and you're not networking online or at a conference, you're planning to fail. You can do a search on google or yahoo to find a few clients.Our top Mortgage Field Reps generates millions of dollars worth of business each year even in difficult economic times. By adopting these seven simple successful MFR marketer habits, perhaps now you can too!
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Several lenders, including Freddie Mac, report more than half of homeowners who lose their homes to foreclosure never answer their lenders' phone calls or letters. Instead, homeowners feel embarrassed about being in default, don't believe their lender can help, and erroneously assume that contacting their lender will cause them to lose their home more quickly.

 

In a press release announced earlier this week, The Short Sale Association of America (SSAA) shared results of a Freddie Mac survey that reported "6 in 10 homeowners in pre foreclosure aren't even aware of the  programs and services available to help them prevent foreclosure."


The release urges real estate professionals to reach out to distressed homeowners, knowing it is highly unlikely they will seek out assistance on their own. 

 

Note: lenders are still behind the times when it comes to investment properties. They claim to have loan modification and other options for investors, but typically that is not the case.

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Fannie Mae Raises Borrowers Costs

Costs Will Increase For Buyers Regardless Of Credit Worthiness


Beginning April 1, 2011 Fannie Mae will implement a higher interest rate to borrowers even if they have a perfect credit score for all loans term over 15 years. Freddie Mac will change its fee structure changes on of March 1st.

Loan Level Price Adjustment
Borrowers will be charged either a higher interest rate derived from the size of the down payment or how much equity is in their home for refis.

Banks Get Conservative
Risk vs. Reward

New home buyers shopping for mortgages will face these fee increases

  1. Someone buying a home with credit OVER 740 with 25% or lower down payment will now pay approx .125% more in rate.
  2. A borrower with a credit score over 740 refinancing to 80% of the value of their home and taking out additional cash can expect to pay an additional .25% higher in rate.
  3. Anyone buying or refinancing a condominium (excluding detached condos) with less than 25% down payment (or equity) can expect an increase in rate of almost .5%
  4. Borrowers without larger down payments will see slightly higher rates.
  5. Buyers with lower credit scores, they can expect much higher rates.


Fannie and Freddie have learned their lesson. The politics of housing has changed from a congressional mandate to make home ownership more accessable, even to the unquaalified, to a rational and more profitable system. They/we lost a bundle and they are looking at another bad year with foreclosures expected to rise again in 2011.

Related Articles
The Politics of Housing
FHA Reforms Shift The Game
A Recent Survey: Is It Time To Buy Rental Property

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Arms Length Transactions in Silicon Valley Short Sales Is It Too Onerous?

When a seller sells their home as a short sale, most lenders  will make everyone, the buyer, the seller, and the agents sign and notarize an Arms Length Transaction document. This states that the sellers and buyers do not know each other, are not related, and the seller will never again, EVER, live in the house , or ever make any profit off of the sale of the home. They can never rent the house or ever buy it back from the new owner.

The intention of this rule is obvious. The banks do not want to sell a home for less money than is owed on it and then have the seller get the benefit of being able to own the home for less money than they originally promised to pay for the home. I am not going to take sides here on whether the seller or the bank has the moral high ground on this. I am just going to say that the banks have made a decision that it is in their best interest not to reduce principal on most loans, but allow a short sale with new owners instead.

In addition to not being able to buy back the house for less money, or have a friend or relative buy the house for less money, the seller is also not allowed to rent the house, ever. This is where I start to have a problem. Some  banks have been allowing foreclosed owners to stay in the homes as renters which makes a lot of sense. The house does not get stripped or destroyed and the renter has a relationship with the house which will help preserve the home’s value.  So why can’t a seller rent from the new owner in a short sale? Many of these sellers do not have money to move and except for HAFA short sales or an occasional generous bank they are not given moving expenses.  It may be hard to find a place to rent after having some credit hits from missed mortgage payments or high credit card bills due to trying to keep up with the mortgage. It seems like an onerous rule to me, and one that does not directly benefit the bank anyway. Why should the bank care who the next owner rents to, especially if the original bank no longer owns or services the note?

And most importantly, what is wrong with a little humanity? Why can’t families stay in their familiar surroundings, keep their children in the same schools, have the same neighbors? Isn’t is enough punishment to lose your home, your equity, and your savings?

What do you think?

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

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