Some banks are aggressively creating programs to help keep homeowners in their homes. Ckick on this link to see which banks are modifying loans with specific programs:

Chart of Programs

Lately I’ve been handling bank-owned properties (REOs) for Freddie Mac. Over one-third are the result of failed short sales!

Often the former listing agent tells me there were multiple offers on the property and they were just waiting for bank approval. When I tell an agent that the bank foreclosed, they are usually shocked.

“How can that be?” they ask me. “I’ve been working with the bank for months.”

Here are some relevant facts:

1. Bank/lender employees don’t have to tell you when they foreclose. If the property has been in default over 121 days, the bank can foreclose at their discretion.

2. Just because you or your agent are talking with the bank, it doesn’t mean that automatically the Trustee Sale date has been postponed. You have to petition the bank for an extension.

3. Not all bank/lender employees tell the whole truth. I’ve talked to many homeowners and agents who thought they were in negotiation with a Loss Mitigator. A short sale packet and reasonable offer had been submitted to the bank–and the bank foreclosed anyway.

If you, a friend or relative are considering selling your home as a short sale, be sure to hire an agent or broker who is an experienced, local professional with a proven track record. Your decision can make the difference between starting over in 2 years or less with minimal damage to your credit OR having your credit reports smacked with a FORECLOSURE that will make it challenging to get a mortgage for the next 5 years (at least).

Feel free to call us at 800-895-5112 with your short sale questions. We have a proven track record (with testimonials) and we actually LOVE helping homeowners avoid foreclosure.

with blessings,
Claudia

You might be feeling down and depressed if you watch the news on television or read the newspaper. Is there any good news in this time of challenge and change?

A couple of week ago, I attended a webinar presented by California Association of Realtors. Their economists DID have some good news. Here are highlights:

* While U.S. sales are flat, real estate sales in California are up. 2008 sales are up 12% so far over 2007, which will be the trough for California.
* California experienced a steeper decline than the nation as a whole, and we are ahead of the curve as we head towards recovery.
* From July 2007 to July 2008, California prices declined 40.3%. Some areas continue to decline even while sales volume increases. Good news? Homes under $500,000 are experiencing the sharpest decline. Homes over $500,000 are experiencing more stable pricing.
* The price peak for Riverside/San Bernardino area was July 2007. Our area is now 42.6% decline from the peak. Good news? Housing affordability in California has DOUBLED. In one year it has gone from 24% to 48%. Since first-time homebuyers drive the housing market, this is positive news.
* The peak of adjustable mortgages resetting was late 2007 and early 2008. Therefore, we are less likely to see foreclosures and short sales throughout 2008 and into 2009.
* C.A.R. economists project price stability in the second quarter of 2009. Sales bottomed out in 2007. We had a quick decline and are likely to experience a quick recovery.

Good news might be scarce, yet it ALWAYS exists in every market. If you are concerned about holding onto your home, give us a call at 800-895-5112. We’ll be happy to discuss your options and help you make the best decision for you and your family.

with blessings,
Claudia

Courtesy of the California Association of Realtors:

“Senate approves revised version of Emergency Economic Stabilization Act of 2008
The Senate on Wednesday evening approved a revised version of the Emergency Economic Stabilization Act of 2008 in a 74 to 25 vote, clearing the way for full consideration by the U.S. House of Representatives. The House voted down an earlier version of the plan on Monday and is expected to consider the revised version by Friday[today].

MAKING SENSE OF THE STORY FOR CONSUMERS

· The revised plan, which is designed to shore up the nation’s financial markets, includes a temporary one-year increase in Federal Deposit Insurance Corp. (FDIC) caps for bank and credit union accounts. The cap increases are critical because they increase the funding backstop the public relies upon should their banks fail. The plan also includes extensions on several business tax breaks and adjustments to the alternative minimum tax (AMT) for individual taxpayers. These, as well as the FDIC cap changes, are amendments lawmakers believe will help bolster approval by the House.

· If approved, the financial rescue plan would allow the government to buy residential and commercial mortgage-related assets, including mortgage-backed securities and loans, in an effort to ease current credit constrictions impacting businesses across all sectors, including the housing market. Also included in the revised plan are provisions to help struggling homeowners avoid foreclosure; increased oversight of the plan; and a limit on compensation for executives of the troubled financial firms that receive assistance.

· Some analysts believe that the economy will worsen if lawmakers fail to pass the bill, which will directly impact the housing market. As obtaining credit becomes more difficult for many businesses, unemployment rates, currently standing at 7.7 percent in California in August 2008, could rise, hindering consumer spending and the demand for housing.”

Check out this VIDEO for information on what the bailout means to you.

with blessings,
Claudia

An article in the Sacramento Bee was made available by the CALIFORNIA ASSOCIATION OF REALTORS®:

“With more homes going into default, and more homeowners unable to qualify for loan modifications, short sales are becoming a viable alternative for many. However, these transactions can be complicated and often require more paperwork and time than a more traditional sale.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Short sales are designed to offer homeowners and banks an alternative to foreclosure. Generally this tactic is employed during real estate downturns, when it becomes more difficult for a homeowner to sell the property for an amount equal to or greater than the amount owed on the original loan. Short sales can be a win-win because they allow sellers to avoid foreclosure and can be less damaging to the seller’s credit score than a foreclosure. With a short sale, buyers have an opportunity to purchase a home at a more affordable price.

• Short sales often are more time intensive than a traditional transaction and often require additional paperwork. Because some banks are overwhelmed with short sale offers, it is important that the seller working closely with their REALTOR® to provide all of the necessary paperwork to ensure that the bank can accurately assess the situation and make a decision that benefits all parties. Sellers who opt for a short sale may best be served by a REALTOR® who has experience working with short sales and is familiar with the required paperwork.”

I totally agree! Short Sales are not for the faint of heart. If you are considering listing your house as a Short Sale in the hopes of avoiding foreclosure, make sure you are using an agent who knows what they are doing.

Give us a call at 800-895-5112. You’ll find out that we are local, we know what we are doing, and we can help. We’re happy to answer your questions and guide you through the process.

with blessings,
Claudia
Certified Short Sale Specialist

I recently got a call from a woman who found my website, www.ShortSalesTemecula.net . She was calling from Idaho about her Temecula rental property that is facing foreclosure.

She told me the house is listed and she has 3 offers. At this point in the conversation, I didn’t know why she was contacting me.

“I can’t get in touch with my agent,” she told me. “I call and call and never hear back from her. Yesterday I called the bank. They said they don’t have a short sale packet or any offers. And the sale date is already set. What can I do? I’m afraid my credit is going to be wiped out if the house goes into foreclosure.”

Honestly, there’s not much of anything I can do. I suggested that the homeowner continue to attempt to contact the agent, who is also a broker. If the agent worked for a broker, the homeowner could seek help from the broker. I also gave the woman the number for Department of Real Estate consumer hotline to ask for their assistance.

I asked how this particular agent was chosen. The homeowner said the young woman helped her lease the house. Leasing is her specialty. The agent told the homeowner she could also handle a short sale.

WORD OF WARNING– If you received a Notice of Default or you are getting behind on payments or will soon be unable to make your mortgage payments, speak to a specialist about your options.

Short Sales require specialized knowledge and expertise to complete with success. The agent must know how to properly market the market, how to compile the short sale packet, how to negotiate with the bank, how to handle multiple offers, and how to work with a seasoned escrow officer who knows what it takes to close escrow on a Short Sale.

All these steps require a high level of competence and excellent communication skills. Make sure your agent knows what they are doing! Once you sign a contract with an agent, it can be binding and you might owe them a commission even if you cancel the contract.

Feel free to contact me at 800-895-5112. I can help you discover your options and make the best choice for you and your family.

with blessings,
Claudia

Here’s another informative article courtesy of the California Association of Realtors:

“Fannie Mae and Freddie Mac, government sponsored enterprises (GSEs), were placed into a conservatorship Sunday by the U.S. Dept. of the Treasury. The Federal Housing Finance Agency (FHFA) will serve as the conservator, and the CEOs of each company were relieved of their duties. Replacing them are Herbert Allison, former Merrill Lynch vice chairman, and David Moffett, former U.S. Bancorp CFO, who will now lead Fannie Mae and Freddie Mac, respectively.

MAKING SENSE OF THE STORY FOR CONSUMERS

· Under the conservatorship, the FHFA has the authority to take up to an 80 percent stake in the companies, and will review both GSEs’ financial condition quarterly. The federal government also may inject capital into Fannie Mae and Freddie Mac, if needed. Both GSEs will be allowed to increase their mortgage funding over the next year and a half, and their stock will continue to trade, with stockholders retaining all rights in the stock’s financial worth. However, the plan does call for a 10 percent reduction per year to GSEs’ portfolios, beginning in 2010, until they have been reduced to $250 billion.

· Although the conservatorship has resulted in lower interest rates for consumers, and restored investor confidence, C.A.R. is concerned that the Treasury and the new CEOs will change the mission and role of GSEs. Without GSEs, mortgage capital eventually will be less predictable and more expensive. This may result in adjustable-rate mortgages becoming the standard loan for home buyers, as well as higher down payment requirements, and the possible disappearance of the 30-year fixed-rate mortgage.

· C.A.R. supports a structure that maintains GSEs in their current countercyclical roles and is urging lawmakers to support continued government involvement in supporting the institutional secondary market. As a result of these concerns, C.A.R. will be asking Congress to enact legislation to ensure GSEs continue to fulfill their congressional mission of supplying an affordable and stable flow of capital for home loans.”

A new video was just released by the California Association of Realtors:

“In response to numerous misleading and unbalanced news reports about Fannie Mae and Freddie Mac, C.A.R. created a new video to educate consumers about the importance of Fannie Mae and Freddie Mac, and how the Government Sponsored Enterprises operate in the market. The video, which features C.A.R.’s Executive Vice President Joel Singer, explains the crucial countercyclical role the GSEs serve, and the likely consequences should they be nationalized or eliminated.”

The video is available by clicking HERE.

with blessings,
Claudia

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