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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As a self-employed real estate broker, I hadn’t thought of another significant reason to avoid foreclosure. A recent article pointed out that many employers are now running a credit check on potential employees. A foreclosure or bankruptcy can be viewed as a lapse of judgment or a Red Flag with regard to character.

This is another reason to consider a Short Sale if you are facing a foreclosure. A potential employer might have strong opinions about people who allow their home to be foreclosed. And these opinions might have nothing to do with your circumstances, such as illness, job loss, etc. Yet, you might not have an opportunity to explain the situation if you are eliminated early in the job interview process.

If you want more information about Short Sales and if this is a good option for you, give us a call at 800-895-5112, send us an email or check out our website www.ShortSalesTemecula.net.

with blessings,
Claudia

Here’s an article excerpt from Yahoo News courtesy of the California Association of Realtors:

Primarily a result of lower gas prices, consumer confidence increased in August, with The Conference Board’s consumer conference index rising to 56.9, up from the revised 51.9 reading in July. Following a six-month decline, August was the second consecutive month that the index increased. A reading of 100 is considered the highest rating possible. In a separate report, new home sales posted an unexpected increase in July, while the Standard & Poor’s/Case-Shiller U.S. National Home Price Index showed prices declined at a slower rate in the second quarter, indicating that some areas may have reached the trough in home price declines.

MAKING SENSE OF THE STORY FOR CONSUMERS

· The Conference Board’s consumer conference index measures how consumers perceive the current conditions and future expectations of the US economy. The index is based on a survey of 5,000 U.S. households.

· The monthly survey details consumer attitudes and buying intentions. Increased consumer confidence generally indicates that consumers are more willing to make purchases. Decreased confidence indicates that consumers are likely to slow their spending.

· Although The Conference Board’s Present Situation Index declined to 63.2 in August, compared with 65.8 in July, consumers expect the economy to improve over the next six months, as indicated by The Conference Board’s Expectations Index. The Expectations Index increased by 10 points, the largest increase since November 2005.

with blessings,
Claudia

Al, “The Loan Guy” Rivera, Senior Loan Officer at GMAC Mortgage in Corona, sends me good info about the mortagage industry. Here’s the latest:

“The Term “Buy Now” is making more sense than ever with a $7,500 credit. Declining home prices and historically low interest rates have created a favorable buyers market! Recent headlines have been touting that many real estate markets have turned to the point that homeowners would be paying less per month for their home owning it rather than renting it. On top of this, the Housing and Economic Reform Act of 2008 does actually have some provisions that could make a difference in our housing markets.

$7,500 FROM THE GOVERNMENT?

“One really interesting piece that was included in this legislation is that for first-time homebuyers (Definition of a First Time Buyer: Someone who has not owned a property in the last 3 years.), they have a window to qualify for up to a $7,500 tax credit. The tax credit will be 10% of the purchase price of a home, up to a maximum of the full $7500 credit. Basically, if the house is over $75,000 they would get the $7,500 maximum. The tax credit will have to be paid back over a period of 15 years which is interest free. It breaks down to about $500 per year. Washington just provided first time homebuyers a 15-year interest free loan to motivate them to buy a home!

“Another factor to consider is that mortgage guidelines will probably tighten more over the next year and mortgage prices will likely rise due to increased delivery fees. Therefore, now is the Time!

TIME TO GET OFF THE FENCE!

“Any potential buyers out there need to get off the fence and act now while all these positive factors are in place at the same time because it won’t last forever. For parents or grandparents that would consider helping their kids buy a new home this is also a perfect time to jump on board and help out.

“It should also be noted that most of the news stories have gone way overboard on new lending guidelines by portraying a market where there is almost no way to get a mortgage. THIS IS NOT TRUE! We can still do loans with as little as 3% down and close them with no problem in 30 days or less. Debt to Income ratios of 55% are still being approved. Fixed rates, interest only and adjustable rate products are all still available.”

You can reach AL “the Loan Guy” on his cell phone: 562-587-5284.

with blessings,
Claudia

This is an excerpt of an article from USA Today provided by the California Association of Realtors:

Although home prices decreased 15.4 percent during the second quarter compared with the same period a year ago, in month-over-month comparisons, home sales are increasing, according to the Standard & Poor’s/Case-Shiller U.S. National Home Price Index. According to the Office of Federal Housing Enterprise Oversight’s home price index, states with the largest annual declines include California at 16 percent; Florida at 12 percent; Arizona at 9 percent; and Rhode Island at 5 percent. Existing home sales increased in July and exceeded many economists’ expectations, while new home sales also increased 2.4 percent for the same time period.

MAKING SENSE OF THE STORY FOR CONSUMERS

· Although home prices are decreasing, existing home sales are increasing nationwide and in California. In California, single-family, existing home sales increased 43.4 percent in July compared with the same period a year ago. Sales in July remained above the 400,000 level for the third consecutive month, with deeply-discounted, distressed sales continuing to drive volume in many regions of the state.

· The state’s Unsold Inventory Index (UII) for existing, single-family detached homes decreased to 6.7 months in July 2008, compared with 10 months (revised) for the same period a year ago. The UII indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

with blessings,
Claudia

This morning I read a news item in the Press-Enterprise. Though the words “SHORT SALE” were never mentioned, it appears that Ed McMahon will save his Los Angeles hilltop home from foreclosure with a short sale.

He tried for many months to sell the home, to no avail. He received a Notice of Default (as I understand from news reports) and was at a loss as to what to do.

Comedian Phyllis Diller publicized his plight and asked the entertainment community to bail out the TV icon.

Then Donald Trump offered to buy the McMahon home and rent it back to Ed and his wife. Now I read today that a buyer came forward and the McMahon’s will move out of their home in the gated community at the close of escrow.

This is a Short Sale! There could be many reasons why The Donald’s offer didn’t go through. 1. The defaulting lender must approve any arrangement for the homeowner to remain in possession of the home. 2. If Ed McMahon is financially strapped, it is doubtful that he could pay rent that would come close to covering Trump’s PITI (mortgage, interest, taxes, and insurance payments). If Trump bailed McMahon out with all-cash, it would really be a bad investment for Trump and not one he could write-off.

So…SHORT SALES can happen to the best of us. If you are unsure how to proceed, give us a call or send us an email and we’ll help you make the best decision for you and your family.

with blessings,
Claudia