news (11)

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We have all heard by now of Deep Vein Thrombosis, a debilitating condition caused by sitting still in one position for hours on end, often in a plane on a long-haul flight and in a tight and cramped position. But just like air passengers, who are often cruelly crammed in to tight spaces by airlines getting as many of us travellers as possible into one plane (to maximize its own profits), long haul drivers are suffering similar fates. These include truck drivers, salesmen and real estate agents.

Real estate agents are often forced to drive from the office to the home that is up for sale (to show potential clients around) and back again several times a day. And the practice is playing havoc to those who suffer from DVT (Deep Vein Thrombosis).

The news that drivers face the same medical issues as airline passengers has alarmed those working in the real estate industry. In fact, doctors have confirmed that it doesn’t matter where you are sitting – be it on a train, on a plane or in a car – a blood clot could occur if the person has been stuck in the same position for hours on end.

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One French cardiologist has termed the condition as “economy class syndrome” in reference to the confined space in which passengers are forced to endure long haul flights. But think about your long car journey and you will soon realize that long term driving is punishing your legs in much the same way as a cramped passenger aboard an economy airline.

DVT may occur when the legs are restricted in one tight position for long periods of time. The blood clots in the part of the leg below the knee. Some hours later, after the clots have formed, they will journey around the body after fragmentation. It gets worse as these fragments are liable to form in the lungs, head or even the brain – sometimes with fatal results.

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A recent study of 160 patients who had suffered from DVT showed that 39 of them had acquired the condition after travelling for a period of more than four hours. 28 of the 39 had actually travelled by car. ..Thats almost 70%.

Doctors have advised that if you have a long-haul journey to make, it may be better to fly rather than drive, as this would involve less time sitting in one cramped position.

Also, don’t overlook the importance and success of compression socks. They certainly aren’t the most attractive accessory but definitely the most important if you fit the description of a potential DVT candidate.

Be sure to speak to your doctor for more information on the potential of DVT.

PamsVAS - Real Estate REO and BPO Virtual Assistant Services

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New Fannie Mae Appraisal Program - Jan 26th

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Is the new Fannie Mae Appraisal Program helping or hurting? What are the basics of the program? Well, the real estate giant is planning to offer mortgage lenders access to proprietary home valuation databases, so that they can use it to assess the “accuracy and risks posed by the reports submitted by appraisers.”

So this system will look closely at the work performed by the appraiser and flag any possible errors. This means the lender can ask for an appraisal to be looked at again, which could in turn lead the lender into reconsidering whether or not to go ahead with the loan.

This new step – to be added from January 26 – will mean the price a home is sold or bought at being determined more thoroughly and will undoubtedly add more time to the closing process and may ramp up the cost of the appraisal fees for doing all that extra work.

So why is this happening now? Well, Fannie Mae wants lenders to make more informed decisions when approving a loan to a home buyer for the mortgage. At present, a buyer will scour the internet and real estate listings and look for their dream home in the area of their choice. Then a buyer finds a home, makes an offer, agrees on a final price and then starts the home buying process.

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The price is at the very high end of their budget but that doesn’t matter because this home is in the area they have always wanted to move into, It has a number of A-listed schools nearby, great shopping malls and restaurants at their doorstep and a place where the crime rates are very low – so it’s got to be well worth it! Right?

But from January 26, the lender will submit the appraisal report to the new Fannie Mae Program and they will come back with “lower risks comps” that could value the home at a higher rate. The lender could then ask the appraisal team to look at the loan again and reconsider, adding time and money to the buying process.

The fear of many real estate agents is that if appraisers become concerned they are constantly being told its assessments are inaccurate, they will automatically be more conservative in their assessments, resulting in lower house prices and stalling the housing market growth considerably.

Only time will show the affects of the New Fannie Mae Appraisal Program. Let us know if you see any drastic changes in your transactions and listings.

PamsVAS - Real Estate Virtual Assistant REO and BPO Services

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The Right Way to Investigate Your New Neighborhood

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The house looks perfect and it has all the features you need.  The location is convenient for your needs and there really is nothing standing in the way of buying this particular property.  STOP.  Don’t buy the house until you do one thing; investigate your new potential neighbors.  Here are some tips for finding out the not so obvious facts.

Make Multiple Visits at Multiple Times

One of the best things you can do before buying the home is to visit the home are various times and various days.  The appearance of the neighborhood at 11:00 am on a Wednesday will likely be different from the appearance on a Thursday night.  Look for neighbors that are in the yard, on the street and how busy the roads are.  Are any of the neighbors engaged in any loud activities such as parties, electric tool use or other annoying sounds?  Take your time and make sure to visit the home on the weekend as well.

Chat Up Your Potential Neighbors

The people that will be your neighbors have the information you need.  However, it can be a challenge to get them to talk.  During your visits look for people out in the yard engaged in various activities.  Start a pleasant conversation and ask them about their opinion of the area and the neighborhood.  Ask a few open ended questions and give them a chance to talk.  Make sure to ask if there are any troublesome neighbors to look out for or any problems in the area such as sink-holes, poorly built homes or sewer issues.

Use the Internet

Various websites like Google and Bing offer maps and street views of nearly every known address.  Type in the address and look around.  It is likely that the pictures are at least a few months old if not a few years.  The home could look exactly like it does now or there could be some major changes.  Take time to look at the home you intend to buy as well as the adjoining properties.  You may discover something that raises a red flag and causes you to consider a different property.

Check Police Records

There are some websites and even smart phone apps that provide detailed police records for neighborhoods.  These sites will usually list things such as robberies, vehicle thefts, and violent crime. Some neighbors on one street may not be aware of crime that is frequently occurring one or two streets over.

See if anyone is Blogging

Sometimes there will be a blog or even a small community newspaper published for the area that you are considering.  If you can find the blog or recent paper take some time to review the information.  Local events, improvements in the neighborhoods and other items will likely give you enough detail to see if this is the right area for you.

Some of these steps may take a bit of time to complete and may seem awkward at first.  However, considering the large investment that comes with owning a home it really makes sense to spend some time researching your new neighborhood and ensure that it will be as nice as your new home.

Middleton, WI Homes for Sale
Waunakee, WI Homes for Sale
Beloit, WI Homes for Sale
Milton, WI Homes for Sale

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Are any of you watching what is happening to housing right now? As reported by Forbes.com’s Eric Carlyle Existing Home Sales Fall 5.1% In January 2014, To Lowest Level Since July 2012 and yet, our S&P still gains ground…..hhhmmm…..

As reported by Lucia Mutikani with Reuters, Housing Starts, Permits Tumble; Mortgage Applications Fall and yet, our S&P still gains ground….hhmm….

As reported by Greg Robb of MarketWatch.com, Philly Fed Manufacturing Weakens in February, index dropped sharply….to a negative 6.3 from a positive 9.4 in January and, yet our S&P still gains ground…hhmm…

As reported by Emily Fox at CNN Money, even consumers are holding back as her article headline reads, Wal-Mart Wars of Soft Start to Year and, yet our S&P still gains ground…hhmm…

Some anaylsis say the weather and cold temps are to blame however, sure, the cold weather may not have made things better but, if our country is so weak, it can’t even take a colder than “normal” (Whatever that is) winter…then I am left to ask, just where are we fiscally…really? Better yet, how is it the S&P can make modest gains in this atmosphere of negative reports?

Oh…I almost forgot, let’s not forget about the last two job reports…..can we say ouch! At some point, the market can’t sustain, especially now with the fed pulling back on Quantitative Easing this year. I am sounding the alarm once again and I really do believe I am correct, this is the year of the “double dip” recession. I say “double dip” in quotes because, I never believed we ever came out of a recession in the first place but, let’s go with the popular misconception we did, hence the quotations around the word, “double dip”.

More now than ever before, since 2007, if we stumble, we will take a much larger hit than any of us that didn’t live through the Great Depression will experience. Why do I say that well, it’s simple, our economy isn’t starting off from a place of strength, as I outlined above. Back in 2006, when the real estate bubble burst, our economy was booming so, the hit we took was bad, even worse than the Great Depression but, most Americans in the Middle and Upper class didn’t make many significant changes to their daily lives whereas the lower class was obliterated. This time around, our economy is not in a position to take another hit like that and if it does, you will see middle class America take the brunt and once again, the lower class will receive the equivalent to a economic nuke being dropped on their heads.

Now, let’s add in expected increases in health care cost due to our Presidents fundamental transformation of our country, increased taxes as we don’t have an in power opposition party to the liberal / progressive agenda being pushed in Washington DC and well, 2014 will be a year we won’t forget, that is for sure.

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Real Estate News 8-24-2012

Stewart Title Spokane Facebook Page

5 Ways to Spot a Home with Hidden Potential
Trulia | August 23, 2012
Remember metal detectors? When I was a kid, they were all the rage, holding the emotional rush of a game with the a potential real-life treasure chest at the end.

Half of Homeowners Under 40 Are Still Underwater
The New York Times | August 23, 2012
The less time you’ve been in your home, the more likely you’ve accumulated little equity and seen the value of your property fall since 2005.

Short Sales vs Foreclosures: The Banks’ Preference
The KCM Blog | August 23, 2012
For months now, we have been letting everyone know that banks were going to begin shifting their focus when liquidating distressed properties. They would start supporting short sales over foreclosures. There is no longer any doubt this is now the new normal.

New Home Sales Up 3.6% in July, Matching Two-year High
The Los Angeles Times | August 23, 2012
Sales of new single-family homes rose to a seasonally adjusted annual level of 372,000 units in July, matching a more than two-year high for total sales, the Census Bureau said.

US Home Prices Make Big Quarterly Jump
FOX Business | August 23, 2012
Home prices rose 1.8% in the April-June period compared with the first quarter of the year, the Federal Housing Finance Agency said Thursday.

Some States Rank High on ‘Housing Misery’ Index
REALTOR Mag | August 23, 2012
Are some housing markets still suffering from the blues? Trulia’s Housing Misery Index takes into account the percentage of change in home prices from a state’s peak during the last decade compared to today as well as the percentage of mortgages that are either severely delinquent or in foreclosure.

Household Income Drops Sharply
The Washington Post | August 23, 2012
Inflation-adjusted median family income fell to $50,964, below where it stood before the recession.

Lost Decade for Shrinking Middle Class
The Wall Street Journal | August 22, 2012
The middle class — defined as households with between two-thirds and double the nation’s median income — has shrunk considerably over the past few decades, a decline that has been greatly exacerbated by the recession and housing bust.

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One of my REOs makes local news

****BREAKING****

This just in, a REO listed by Jesse Gonzalez makes the local news.

 

So, as the headline says, yes...it's true, a pre-list REO of mine made it on the local news last night. The scary part, I had no clue till a friend of mine who happened to see it last night told me about it.

 

Now, while watching this vide (be sure to hit the "watch video" option) keep in the back of your mind, I knew nothing....nothing till almost 24 hours later.

 

http://m.fox17.com/news/Hazmat_Called_to_Residential_Street_-_Eric_Alvarez

NOTE: My sign isn't in the yard because I was waiting for the grass to be mowed before I put it out, thank GOD because could you imagine them showing my name, sign and calling me for comment on their story?

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UNDISCLOSED SHORT SALE PAYMENTS MAY BE ILLEGAL


Undisclosed payments in short sale transactions, especially those paid outside of escrow, may violate the law, including RESPA, laws against loan fraud, and licensing laws. Short sale agents have increasingly reported to C.A.R. about requests for agents and their clients to pay junior lienholders and others, oftentimes outside of escrow.

One common scenario is when a short sale seller's senior lender authorizes a payment of $3,000, for example, to extinguish a junior lien, but the junior lender demands that the buyer pays an additional $9,000 outside of escrow. Not only would it be risky for a buyer to pay outside of escrow, but concealing this additional payment from a federally-insured senior lender may constitute loan fraud, which is a crime punishable by 30 years imprisonment plus a $1 million fine (18 U.S.C. section 1014). Furthermore, omitting from the HUD-1 Statement any charges paid at settlement by either a buyer or seller may violate the Real Estate Settlement Procedures Act (RESPA) (Appendix A to 24 C.F.R. Part 3500). Depending on the specific circumstances, carrying out these payment requests may also violate other laws and regulations, and an agent's participation in the scheme may be subject to license revocation by the Department of Real Estate or other disciplinary action.

Agents and their clients are encouraged to file any complaints regarding fraudulent activities to the proper authorities, including the following agencies:


Attorney General's Office

California Department of Justice

800-952-5225 Phone

http://ag.ca.gov/consumers/mailform.htm


Department of Housing and Urban Development (HUD)

HUD Office of Inspector General Hotline (GFI)

800-347-3735 Phone

http://www.hud.gov/offices/oig/hotline


Federal Bureau of Investigation (FBI)

202-324-3000 Phone

https://tips.fbi.gov


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FHA makes Policy Changes to Lower Risk

I just saw this article by Carrie Bay of DS News. Something we will all need to keep in mind as we qualify buyers.The Federal Housing Administration (FHA) said Wednesday that it is raising homebuyers’ up-front costs for mortgage insurance, tripling downpayment requirements for borrowers with low credit scores, and cutting seller concessions in half.The agency says the new policies for its government-insured mortgages will help FHA better manage loan risk and losses. According to FHA’s latest monthly activity report, nearly 9 percent of the single-family mortgages it insures against default are at least 90 days past due. The record-high delinquency rate has sent the number of claims FHA has been forced to pay out skyrocketing and left its capital reserve fund depleted – falling below what’s required by law for the first time since the agency was formed.The FHA currently backs about 30 percent of all new loans for home purchases and 20 percent of refinanced loans. The agency’s share of the mortgage financing market has increased nearly 1,000 percent (yes, that’s 1,000) since 2006, as private lenders pulled back and the credit crunch set in – it’s a position that FHA Commissioner David Stevens says can’t be carried on for the long-term. He insists it’s essential that the federal mortgage insurer’s portfolio eventually return to pre-crisis levels and back to its original credo of providing financing for homebuyers in underserved parts of the country.But for now, Stevens said, “Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important.”Stevens called the new policy changes “the most significant steps to address risk in the agency’s history.”As part of the plan, FHA is increasing up-front mortgage insurance premiums paid by borrowers from 1.75 percent to 2.25 percent. The change will go into effect “in the spring,” the agency said.Stevens has also requested legislative approval to raise the maximum annual premiums that FHA can charge. If this authority is granted by Congress, then the second step will be to shift some of the premium increase from up-front to the annual fees assessed. FHA says this shift will allow it to increase capital reserves with less impact to the consumer, because the annual premium is paid over the life of the loan instead of at the time of closing.New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5 percent downpayment program. Homebuyers with less than a 580 FICO score will be required to put down at least 10 percent. This change is expected to take effect early this summer.Changes are being made on the seller side of the equation, as well. Beginning this summer, the amount that sellers can kick in – typically in the form of closing costs – will drop from 6 percent to 3 percent of the home’s value. FHA says the current level exposes the agency to excess risk by creating incentives to inflate appraised value, and the reduction will bring its criteria in line with industry standards on seller concessions.In addition to the policy changes introduced, the mortgage insurer plans to beef up oversight of FHA lenders. Beginning February 1, lender performance rankings will be available to the public on HUD’s Web site.FHA is also planning to implement statutory authority to enforce indemnification provisions for lenders that delegate their insuring processes, and is pursuing legislative authority to increase enforcement on FHA lenders. The authority would include requiring all approved mortgagees to assume liability for all the loans they originate and underwrite, as well as the ability to withdraw FHA approval for a lender nationwide if the performance of one of its regional branches is faulted.Robert E. Story, Jr., chairman of the Mortgage Bankers Association (MBA), commented “MBA supports FHA’s efforts to root out those lenders who pose undue risk to the program. We will work with FHA to ensure those efforts include fair and thorough investigations and appropriate due process for lenders who could be impacted.”The agency expects these steps to tighten up its standards will help mitigate rising defaults and pay-out claims, and give a much needed lift to its capital reserves in order to avert what so many economists are proposing – that the federal agency itself will need a taxpayer bailout.
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Those of that know this company have all been waiting for this news and now it official!Titanium Launches New REO company Excellen REOFor another company to launch into the REO market indicates to me that the "shadow inventory" we have all been hearing about, is real and it is just a matter of time as to when it will hit the market and if it will be in drips or not. How and when this release of inventory comes to market is a heated topic I'm sure.I know here in Las Vegas we could use a some more under $300,000 homes to come on the market as I am working with several buyers now and the competition to win a bid can be difficult for some right now.Titanium Solutions- Titanium Holdings Enters the REO market with its Launch of Excellen REOIt is all over the news here is one place at the DSNEWS to read about itIt is on Housingwire.com too and/or just Google Excellen REO.Titanium Holdings, Inc., the parent company of loss mitigation specialist Titanium Solutions, Inc., is jumping into the property disposition arena with the official launch of a new business unit, Excellen REO.Excellen REO is headquartered in Fort Mills, South Carolina, along with its sister company Titanium Solutions and parent Titanium Holdings.Cary Sternberg is the president of Excellen REO a few of his former titles were, he was formerly with American Home Loan Servicing, VP of Loan services for Indy Mac and REO manager for Ocwen.
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eLoan Mods

In a recent post on Mortgage Servicing News the latest and greatest in the world of default servicing is electronic (on-line) loan modification. Ironically, I'm reading a book right now by Mark Zandi (Financial Shock - I recommend it to everyone in our REO network btw) and he talks about online lending. Albeit, they aren't the same, but I can only imagine some of the fraud and future complications that will be the result of consumers jumping online to apply for a loan modification which, in turn is automatically run through underwriting by a series of codes that do verification based on the honor system.Call my pessimistic, but I don't see this being the salvation to our situation. Don't get me wrong, I'm glad that there are solutions being recommended, however; when's the last time that we, the people (and more importantly the REO professionals) were consulted about potential realistic solutions?Read the article here....it's actually very informative. I don't mean to sound like the write-up is bad. It's not.
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Climb in U.S. House Prices Pauses in July

Integrated Asset Services®, LLC (IAS®) (www.iasreo.com), a leader in default management and residential collateral valuations, today released the latest IAS360™ House Price Index (HPI). Based on the timeliest and most granular data available in the industry, the index for national house prices was down 0.5% in July.The slight decline marked the first down month for the IAS360 since February. The leading U.S. housing benchmark remains ahead fractionally for the year but still well off (-16.2%) its high in June 2007.“We are seeing normal seasonality with a slight July pullback, but we are not out of the weeds yet as we will see waves of volatility while the markets correct themselves and settle down,” said Dave McCarthy, President and CEO of Integrated Asset Services. “Meanwhile, there’s an awful lot going on down at the neighborhood level that will take time to normalize at the top.”Conspicuous among the nation’s 10 major metropolitan statistical areas (MSAs) were the 3.8% declines in both Denver, which had been reliably stable since the first of the year, and San Francisco, which had jumped almost 8.0% from February. Notable, too, was a sizable 4.8% drop for the month in Las Vegas. While the region has fallen month over month since August of 2006, July’s plunge represents the largest percentage drop to date.“A lot of this volatility has to reflect Washington's near-term influence on price behavior through actions like the foreclosure moratorium,” says McCarthy. “We’re already seeing buying activity moving around in different price segments. The beauty of the IAS360 is that the index captures and reports on these changes in a way that reveals the reality of the market.”The IAS360 House Price Index is a comprehensive housing index tracking monthly change in the median sales price of detached single-family residences across the U.S. The index, based on all arms-length transactions, tracks data for 15,000 neighborhoods, that roll up to report on the changes in 360 counties, nine census divisions, four regions, and the nation overall. The IAS360 House Price Index is delivered on a monthly basis.
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