How's the Real Estate Market??

The Real Estate World --- Is a multi-headed Serpent
Five part series

The question “How’s the Real Estate Market?”
has no simple way of describing all the factors that contribute to the volatility for this segment of our economy. From Banking, its regulations and lack thereof, politics, lobbyists, developers, local planning dept’s., and on and on. Only addressing the areas that are directly related, I will give it a go though!

We will start with the . . .
Investors/buyers.
This ranges from the single individual with mega cash to invest hence no credit score issues, to the two income couple with three children struggling to get into their first home on a hope and a prayer.

Where you are in this spectrum, determines the ease in accomplishing your goal and which directions you can take.

If you are in the “Cash Flush” Investor category, you can literally track foreclosures, show up on the courthouse steps and plunk down the cash on all kinds of bargains, I have watched, it is - stunning! The great deals are out there and are being snapped up. This is how the bulk of the sales of existing homes is happening now and with the ‘flipping regulation’ just having been removed, it is an investors game right now.

But if you are like the rest of us, the all important credit score dictates the next steps - which I will go into as we proceed. Hence many twists and turns.

The most important thing to learn is ‘Cash is King’. Even though you prove to the banks you are an excellent candidate for a loan, right now the purse strings are very tight even though they have been loaned ‘our money’! We could go around all day about the why’s of this but my sincere opinion is further trouble ahead with what is be designed in Washington and the ‘Banks’ don’t want to be the ones at the table that can’t find a chair when the music stops.

The BEST thing you can do is work with an experienced reputable Real Estate Broker and Mortgage Broker! Ones that have been through many of the historic cycles and are up-to-speed on the “latest” with what entities are offering the BEST package and the latest regulations being issues by the Administration. This is changing at a rapid pace and keeps those not professionals in the business, ‘off balance’
and causes unnecessary complications for professionals -
is this the ‘Change’ we were Hoping for??
(to be continued)

Home Ownership Help - Finally!

The following article will coincide with the previous post. Slowly but surely agencies are being formed to help homeowners.

http://tinyurl.com/yhn4mzf

Loan Modification Help, Check here!

Check out this website to assess if you can get your loans modified. The list of modifying agencies and specifics are all here. BEWARE OF ANY INSTITUTION ASKING FOR MONEY UPFRONT! This is usually a SCAM!!
http://www.hopenow.com/

Reality of Current Loan Modification Programs

This is a very good summation of the current state of the modification programs. This is a very difficult time for many homeowners since the scenerio has mutated since the initial programs were set up. Take a close look and realize, yes, things are a'changin!

http://tinyurl.com/yfm2hq5

Loan modifying attorneys under investigation.

Since the Loan Modification Program was announced and there was no set plan/program for these modifications to be implemented the following has been an all to common occurance.




The State Bar of California has recently launched numerous investigations against attorneys for misconduct related to loan modifications. In a rare move, the State Bar has released the names of 16 attorneys under investigation, by opting to waive investigation confidentiality in favor of public protection. These attorneys have allegedly taken fees for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes. Their non-attorney staff may also be under investigation for unlawfully practicing law.

Not all attorneys engaged in loan modifications are unscrupulous. However, this announcement from the State Bar serves as a good reminder for REALTORS® and their clients to be careful when dealing with attorneys and others for loan modifications. Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes. The list of attorneys currently under investigation is available at http://calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10144&n=96395.

Get Accurate Information

With all the different 'Stories' going on around, this is the straight scoop.
Too many people hear parts of the facts and run with it or just stop listening because they get overwhelmed.
If you are looking for mortgage advice, seek a reccommended professional. Don't have one, call me I've got some GREAT reccommendations!



NEW FEDERAL LAW AFFECTING DISTRESSED PROPERTIES
On May 20, 2009, President Barack Obama signed into law the Helping Families Save Their Homes Act of 2009 to help homeowners and lenders avoid foreclosure. Previously included in this bill was a measure to allow bankruptcy judges to modify mortgage loans for principal residences, but the U.S. Senate did not pass this "cram-down" legislation. The Helping Families Save Their Homes Act of 2009 contains various new laws to address the national foreclosure crisis. Major provisions that may affect California REALTORS® and your clients include the following:

Longer Stay for Tenants of Foreclosed Homes: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.

Notification of Transfer of Mortgage Loans: The Truth in Lending Act now requires a lender to whom a mortgage loan is sold or otherwise transferred to notify the borrower in writing of such transfer within 30 days. The notice must include the new lender's identity, address, telephone number, authorized representative's contact information, and other relevant information. This measure should help alleviate the problem borrowers may face in determining who owns their mortgage loans.

Hope for Homeowners (H4H) Revamped: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans. Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program's first seven months, it apparently only helped one family stay in its home. The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value. If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner's equity. Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance. Millionaire borrowers (with net worth over $1 million) are now excluded from the program. HUD will establish the requirements and standards to implement the H4H program as revised.
Other provisions of the Helping Families Save Their Homes Act include a 4-year extension of the $250,000 FDIC deposit insurance to December 31, 2013, protection for loan servicers who establish qualified loss mitigation plans from liability for an alleged breach of duty to maximize mortgage values for their investors, $130 million for foreclosure prevention counseling and education, and $2.2 billion to strengthen homeless programs.

Easing of Refi Guidelines by FED.

This is "Hot of The Press" according to Calif. Assoc. of Realtors and will effect many homeowners in this situation. So it is time to revisit your "qualified lender" and get the Ball Roll'in to modify your loan that is causing havoc in your life.


Reporting from Washington and Los Angeles -- The Obama administration eased eligibility rules Wednesday for its Home Affordable Refinance program, lifting the maximum loan-to-value ratio to 125% from 105%.

The shift, which regulators had hinted was coming, is aimed at making refinancing available to more people whose homes are worth less than their mortgages.


HARP is open to homeowners whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, the mortgage finance giants now under government control. It covers first mortgages only.

The refinance program, launched this year, has gotten off to a slow start, in part because the maximum 105% loan-to-value ratio was too low to include many homes that have fallen sharply in value.


The new 125% maximum means an eligible homeowner with a $375,000 mortgage can refinance if his or her house is worth at least $300,000. But the borrower still must be able to afford the new loan. Income requirements are an increasing problem as unemployment soars and many workers are dealt pay cuts.


Treasury Secretary Timothy F. Geithner said the move to raise the loan-to-value limit was "a crucial step in our broader efforts to get America's housing market and economy on the path to recovery."

But refinance activity in general remains vexed by the jump in mortgage rates from their generational lows in April. Refi applications to lenders have tumbled since mid-May as rates have surged, according to Mortgage Bankers Assn. data released Wednesday. Despite a down-tick in rates in the last two weeks, refi activity hasn't rebounded.