It's Easy When You Know How!

Cherry Creek Exclusive - Lowest Price EVER!!

2011-11-08T16:23:00.000-08:00

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

Short Sale Package Checklist

2011-11-08T08:48:00.000-08:00

Unfortunately the time has come. The bank refuses to modify your loan and your forced to try to short sell your home before it is foreclosed on. Here is a checklist of items most banks will want in the initial package;

Homeowner should provide the following:

Authorization Letter - gives your Realtor permission to represent you and talk about your account
Hardship Letter - Explain exactly why you can no longer afford to pay your Mortgage. State clearly your hardship. It doesn't need to be super long, just a paragraph or two is okay.
Tax Returns - Last 2 Years
Last 3 Bank Statements - all pages
Last 4 Paystubs - If you have been working, or are on Unemployment
Monthly Expense Sheet - Detail Expenses and Bills
Proof of Assets - Savings, IRA, Life Insurance, Stocks Bonds, Trust Funds, Home equity Lines, etc...
Pictures & Estimates of Repairs
Copies of any Liens or Litigation
Credit Report - If it shows negatively that your no longer paying other bills, homes, etc...

Your agent will work on gathering the following:

From the Buyer:
- Purchase Offer,
- Earnest Money Deposit Check Copy,
- Proof of funds,
- Pre Approval Letter from buyers lender
Estimated HUD-1 - from Attorney/Escrow
Comparable Sales/CMA
Listing Agreement

Submitting all of the items at one time is recommend. Be prepared to fax the information multiple times to multiple fax numbers from the lender. It is very common for the lender to be "unable to find" your short sale package or request.

Agent Tip: Keep a log of the fax number, time & date of each fax sent. Many lenders have digital fax logs and can "Magically" find your fax when you ask them to check their log. Give them the number, time and date of the fax.

HOPE THIS HELPS..... GOOD LUCK ON YOUR SHORT SALE :)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

All a Buyer Needs is Vision

2011-09-19T14:54:00.000-07:00

Almost every home purchase can be financed with the versatile FHA 203K Renovation Loan.

Even if a property needs to be torn down or demolished, as long as even a part of the foundation remains a new home can be built using funds from a 203K.

In addition to repair and renovation costs, the actual price of demolition can be factored into the loan.

Contact me today for more details.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111 Lic. #01742839
Source: Corinthian Title Co.

LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED

2011-07-22T17:31:00.000-07:00

In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

This law is fully set forth as Senate Bill 458 (Corbett) at www.leginfo.ca.gov.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111 Lic. #01742839

Source: C.A.R. News

Find a REALTOR®

2011-04-04T10:22:00.000-07:00

Find a REALTOR®

For most of us, a home is the single biggest purchase in our lives. The enormity of the financial transaction aside, finding the right home to fit our particular needs and wants is no easy undertaking. Just as you wouldn't buy a car, computer or camcorder without doing some research into various models and prices, you shouldn't consider purchasing a home without some expert advice and guidance. Though some people may think of using the services of a REALTOR® only when selling their homes, a REALTOR® can be invaluable when buying one as well.

For instance, a REALTOR® can help you determine how much home you can afford based on your financial situation, help you get prequalified for a loan, and even inform you about available financing options. A REALTOR® also is an expert on the neighborhood, and can provide detailed information about schools, transportation, local taxes and community characteristics. Using a REALTOR® is also one way of gaining access to homes listed on the Multiple Listing Service (MLS), an important marketing tool used by REALTORS® to inform other REALTORS® about available properties. That means a REALTOR® can give you information about a wide range of available homes from which to choose. When it comes to finding out ifyou're paying too much, a REALTOR® can provide you with market analyses comparing asking and selling prices of homes in the neighborhood. Finally, a REALTOR® can serve as the liaison between you and the seller, bringing to the table negotiating expertise and knowledge about required disclosures and the housing market.

So, where do you find a REALTOR®?

Like finding any good professional, the best way to find a REALTOR® is through recommendation from friends or those who have bought or sold homes recently. Ask for references and check each thoroughly. Also, interview several REALTORS® before you decide on one.

It's important to find a professional who is a REALTOR®. Why? A REALTOR® is someone who, as a member of the local, state and national trade associations, adheres to a strict code of ethics. Recently, the NATIONAL ASSOCIATION OF REALTORS® commissioned a nationwide survey to determine whether REALTORS® were doing their job professionally. The results were impressive: 97 percent of respondents indicated they received "excellent" or "very good" service from their REALTOR®.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

Source: C.A.R.

FHA Annual Mortgage Insurance Premium to Increase

2011-03-22T09:42:00.000-07:00

If you are still on the fence about buying a home, you should know that the Federal Housing Administration (FHA) is increasing mortgage insurance premiums on FHA home loans as of April 18, 2011. This deadline applies to the FHA case assignment date.

This increase could cost you (buyers) more money each month for your total monthly mortgage payment. If you are close to contract, BUY NOW before the new mortgage insurance premium takes effect. You MUST have an active loan application for the subject property prior to April 18, 2011.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111 Lic. #01742839

Source: Prospect Mortgage, Felisa Schlosser-Loan Officer

Short Sale Lender Satisfaction Survey....Not much satisfaction to speak of!

2011-03-09T14:31:00.000-08:00

For release:

March 8, 2011

LOS ANGELES (March 8) – Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures, according to a Short Sale Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The survey gauges REALTORS®’ experience in working with short sale transactions – transactions in which the lender or lenders agree to accept less than the mortgage amount owed by the current homeowner.

“It’s disappointing that less than three in five short sales close, despite every effort by the REALTOR®, home seller and potential home buyer,” said C.A.R. President Beth L. Peerce. “Many underwater homeowners who have been hit by the recent economic crisis can no longer afford to stay in their home and just need to sell their home as expeditiously as possible are unable to largely because of the complex and cumbersome short sale process,” she said.

Of the REALTORS® surveyed, 94 percent participated in a short sale transaction during 2010, demonstrating the surplus of short sale listings in today’s real estate environment.

The most frequent problems REALTORS® cited in working with lenders and servicers during the short sale process include unresponsiveness, onerous procedures, and long processing delays.

Nearly three-fourths (70 percent) of REALTORS® said that closing their most recent short sale transaction with a lender or servicer was “difficult” or “extremely difficult,” while only 10 percent said it was “easy” or “extremely easy.”

“The lack of standardization, long approval process, and lack of lender approvals are hampering what should be a 45-day short sale process,” said Peerce. “Instead we’re hearing the typical response time for lenders is at least 60 days, and in many instances, their response time exceeds 6 months.”

More than half (63 percent) of REALTORS® said that lenders took more than 60 days to return a written response of the approval or disapproval of the short sale agreement submitted. Only 4 percent said they received a written response in less than 14 days.

Additionally, 44 percent of REALTORS® said that lenders took more than five business days to return any form of communication to REALTORS®. Only 14 percent said lenders responded “within one business day.”

“The survey results show that the short sale system is clearly flawed and must be standardized and streamlined to reduce the inventory of foreclosures,” said Peerce. “Increasing the number of successful short sale transactions is one important way we can help California families avoid foreclosure and move our economy closer to recovery,” she added.

Further illustrating faulty communication problems, 64 percent of REALTORS® were “not satisfied” or “not at all satisfied” with the timeliness of lenders’ response to their inquiries, while only 22 percent said they were “satisfied” or “extremely satisfied.”

Moreover, nearly three-fourths (74 percent) of REALTORS® were “not satisfied” or “not at all satisfied” with the amount of time it took to hear whether a transaction was approved or disapproved, while 16 percent said they were “satisfied” or “extremely satisfied.”

In overall satisfaction with the lender they worked with, 67 percent of REALTORS® were “not satisfied” or “not at all satisfied,” while 19 percent were “satisfied” or “extremely satisfied.”

C.A.R.’s Short Sale Lender Satisfaction Survey was conducted during the last two weeks of December 2010 to gauge REALTORS®’ experience in working with lenders or servicers of short sales, bank-owned properties (REOs), and foreclosures. The survey was delivered to 20,000 REALTORS®, with 2,150 responding to the survey.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

Source: C.A.R.

Made in the U.S.A. - Buy a Home, Create Jobs!

2011-03-01T11:28:00.000-08:00

When you purchase a home of your own, you empower yourself and so many others.

You're investing in one of the last handmade American products.

You are creating jobs for Furniture Movers, Moving Van Companies, Realtors, Their Assistants, The Escrow Company Employees, Title Company Employees, Your Loan Officer, The Mortgage Company Employees, Your Personal Bankers, Your Mail Carrier, Termite Companies, Home Inspectors, Misc. Building Contractors, The Appraiser, Possibly a Gardener or Pool Service, City Utility Workers-like Water and Electricity, Home Owner Association Employees, Trash Service... the list goes on....

Most of the above started out as small businesses or from people who work from home.

There is a trickle down effect that creates jobs for many people. So take pride in your purchase!! And, remember to fill your home with appliances, furniture, clothing, CARS and toys... MADE IN AMERICA!

"Making HOMEOWNERSHIP Simple!"

Barbara Ann Paul Wibe, e-PRO REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

FIRST TIME BUYERS: What is a SHORT SALE? How is it different from a FORECLOSURE?

2011-01-22T15:04:00.000-08:00

As a First Time Home Buyer Specialist, I often have to start educating my clients early-on about what a "short sale" is, and how it is different than a "foreclosure." We talk about "regular, more traditional" sales and how each offer needs to be tailored to each property, depending on the type of sale.

-Traditional Sales-

*Referred to as Regular or Non-Distress sales.

*ALL terms are negotiable, unless otherwise directed

*These homes are usually being lived in by the Owner or a Tenant

*Super easy to work with. Can usually close within 30 days.

*Caution: Seller may need to buy new home before closing on existing home. You will know right away if this is the case via counter offer, MLS Info or the agent.

-Bank Owned Property-

*Often called REO or Foreclosure property

*The Lender owns the property and they are required to transfer clear title (NO LIENS)

*Once the property has reverted back to the bank, the price is at it's lowest!

*Banks will not counter offer, They accept the highest and best offer submitted (there can be up to 20 or 50)

*Banks are easy to work with and usually respond to your offer within 24-72 hours. The longest response time I have seen was a week. (not the case when dealing with a short sale.)

*Banks can close in 30-45 days (not usually the case when dealing with a short sale.)

*Banks will usually give the buyer closing cost assistance and usually always perform all termite damage repairs.

*Always Vacant

-Short Sale-

*Also called a Pre-Foreclosure or Short Pay

*The Owner of the property is trying to sell the property for less than what the owner owe's the bank on the existing mortgage(s)

*Often there are 2 lenders who need to agree to the short sale. (95% of short sale's that don't go through are because the 1st lender will only allow the 2nd lender to get $1,000 - and usually the second lender doesn't agree to these terms.) TRY to make offers on homes with 1 lender - you will have a better shot at a successful short sale.

*Seller may not be transferring Clear Title, due to the fact that they are in distress and often months behind on payments, Sometimes Liens appear on the title month after sale from debt that the original owner may have had with someone else. The paperwork takes time to process and sometimes liens pop up later that you may need to take to court and deal with.

*Often times (since the seller is in a distressed situation or facing a hardship like job loss, medical bills, or divorce etc.) the buyer has to bring additional funds into escrow to close the property. I have seen a short sale get down to the last few days in escrow, and the appraisal comes back high-right before closing, and so the price of the house has to be raised to meet the appraisal value. Since the sellers have no money, the buyer was asked to come up with an additional $6,000 within the week. Needless to say the deal was cancelled. I have seen this happen with Past Due H.O.A. Fee's as well.

*If in fact a short sale does work out you can get a really good deal, (but if the same house foreclosed you will get the best deal)

*Although the seller of a short sale has accepted your offer, they have to submit it to the bank and you may have to wait 1,2,3 or even 9 months for a response from the bank about whether or not they will accept a short sale on the property.

*Once escrow is opened you will need 45-90 days to close it. Short sales are never guaranteed to close (- So what happens if you have given your landlord your 30 day notice??)

*Short Sales have NO Closing costs credited to the buyer

*Short Sales have NO repairs done to satisfy Buyer regardless of what the Inspector says about the condition of the property.

*A common problem with short sales is the buyer losing out on money paying an inspector up to $450 to inspect a property that they will never own.

* Often times the homeowner is living in the property, or is renting it out. What kind of condition do you think they will leave it in??

If You or someone you know would like to talk about buying you first home, Give me a call and I will help you through each step. Call 619-850-4174 and ask for Barbara.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

Franchise Tax Board to Cease First-Time Buyer Tax Credit Program August 15, 2010

2010-08-09T20:38:00.000-07:00

The Franchise Tax Board (FTB) announced that it will stop accepting applications for the First-Time Buyer Credit at midnight Sunday, August 15, 2010.

As of August 4, FTB has received 31,460 applications. Because some of the applications are invalid or duplicates, FTB will continue to accept them through August 15, to ensure that enough valid applications are received to properly allocate the full $100 million of tax credit. FTB estimates that it can award approximately 17,500-20,000 credit certificates to unique and valid applicants. However, once the funds are exhausted, any remaining applications will be denied.

The State is providing $100 million in tax credits to first-time home buyers. The credit will be allocated on a first-come, first-served basis using the date and time stamp on the fax submission, until the money is exhausted. The tax credit is available to those who purchased a qualified principal residence and did not own one during the last three years. This credit is five percent of the purchase price or $10,000, whichever is less. Taxpayers must claim the credit on their tax return in equal amounts over the following three tax years.

To apply, the buyer must complete and fax an FTB Form 3549-A, Application for New Home / First-Time Buyer Credit, along with the final settlement statement. It must be faxed to FTB within two weeks (14 calendar days) after the close of escrow. The fax number is 916.855.5577.

Taxpayers must receive a certificate of allocation from FTB to claim the tax credit on their California personal income tax return. FTB expects to send the allocation certificates over the next few months starting in August.

California homebuyers still have time to qualify for the state’s other $100 million home tax credit for the purchase of a new home. The New Home Credit is available for taxpayers who purchase (close escrow) a new home on or after May 1, 2010, and before August 1, 2011, as long as they enter into an enforceable contract executed before January 1, 2011. The seller must certify that the home has never been previously occupied.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

Source: Corinthian Title Co. Mon, Aug 9, 2010 at 6:05 PM

Buyers Rush to Meet Tax-Credit Deadline

2010-05-03T12:26:00.000-07:00

As the federal tax credits come to an end, home buyers everywhere are hurrying to get in under the wire. But in California the rush has turned into something of a stampede as some would-be buyers try to qualify for both the federal credit and a $10,000 state credit that kicks in Saturday. As one home shopper tells the Los Angeles Times, "I am looking at properties almost constantly, and it is just kind of a feeding frenzy right now.” "The stimulus has worked," says Rick Hoffman, president of Coldwell Banker Residential Brokerage in San Diego and Temecula Valley. "Buyers are confident that we have seen the bottom of the real estate market and that we are on the way back up." Source: Los Angeles Times, Alejandro Lazo (04/30/2010)

FIRST TIME BUYERS WELCOME! Call Me! 619-850-4174

Barbara Ann Wibe, e-PRO, REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

Most Mortgage Rates Drift Lower

2010-05-03T12:21:00.000-07:00

Freddie Mac reports a slight drop in the 30-year fixed mortgage rate to 5.06 percent during the week ended April 29 from 5.07 percent the prior week. A year ago, rates were just under 5 percent. The 15-year fixed mortgage rate held steady at 4.39 percent, while the five-year adjustable mortgage rate dipped to 4 percent from 4.03 percent. The one-year ARM rate rose slightly to 4.25 percent from 4.22 percent. Source: Wall Street Journal, Nathan Becker (04/30/10)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

5 Costly Mistakes First-Time Buyers Make

2010-04-27T16:26:00.000-07:00

Buying a first home can be a daunting experience. Here are five common and costly mistakes that novice home buyers make:

1. Ignoring the costs of having a low credit score. Lower-score borrowers pay thousands of dollars in increased interest rates over the life of the loan.

2. Muddying the waters by shopping for other things before closing. Lenders continue to check credit scores right up until the time of closing. Too much shopping could cause the lender to take back the loan.

3. Scrimping on an inspection. Being surprised by the need for expensive repairs can be financially devastating.

4. Buying without contingencies. Buyers should give themselves an out if the inspection turns up problems or the bank raises the interest rates.

5. No money for insurance. Insurance can be surprisingly pricey. Buyers who don’t budget for it can face a nasty surprise. Source: CNNMoney.com, Les Christie (04/19/2010):

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218

San Diego Ca 92111 Lic. #01742839

More People Are Sharing Homes

2010-03-19T10:51:00.001-07:00

About one in every six Americans lives in a multi-generational household, up 30 percent since 2000, according to U.S. Census figures and a study released Thursday by the Pew Research Center. The study found that the economy is a primary driver of the trend, but there are other factors as well. Aging Americans are opting for home health care over nursing homes, and Hispanic and Asian immigrants come from cultures where multi-generational living is the norm. The Pew study and an examination of census data by AARP concluded: • The most likely multi-generational scenario is a parent who owns a home and shares it with an adult child and a grandchild. • Older women are more likely than older men to live in a multi-generational household. • The number of adults older than 65 who live alone is decreasing from 28.8 percent in 1990 to 27.4 percent in 2008. Source: Associated Press, Hope Yen (03/18/2010)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Builders Say Business Is on the Upswing

2010-03-19T10:46:00.001-07:00

The spring selling season is already keeping builders busy, says Ticonderoga Securities Analyst Stephen East, who surveyed builders in North Carolina, Virginia, Florida, Texas, and California’s Inland Empire. East found that many builders reported increasing interest among move-up buyers. Builders also said that traffic was not only busy on the weekends, but was also increasing mid-week. “While the market is benefiting from the tax credit, it is also showing distinct signs of normalizing,” East wrote in a client note. Source: The Wall Street Journal, Dawn Wotapka (03/12/2010)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Home Equity Loans Available Again

2010-03-12T11:01:00.000-08:00

Banks are again offering home equity loans.

Lenders are expected to make about $36 billion in new home equity loans over the next year, according to Moody’s Economy.com. That’s actually more than the $34 billion in home equity loans made in 2008.

The difference will be the way the money is spent, says Frank Nothaft, chief economist at Freddie Mac. Most of it will go for necessary home improvements. “Consumers are better at managing their own personal balance sheet as a result of the difficult recession we went through,” Nothaft says.

Source: Bloomberg, Kathleen M. Howley, Prashant Gopal, John Gittelsohn (03/11/2010)

IRS issues new guidelines on obtaining home buyer tax credits

2010-03-08T10:30:00.000-08:00

The Internal Revenue Service (IRS) recently issued new guidelines and clarified documentation that taxpayers must submit to successfully obtain the federal tax credit for home buyers.

MAKING SENSE OF THE STORY FOR CONSUMERS

The federal tax credit for home buyers was extended and expanded late last year. Qualified first-time buyers may be eligible to receive a tax credit of up to $8,000 on homes purchased before April 30, 2010. Repeat buyers may be eligible for a tax credit of up to $6,500. Click here for more information about the federal tax credit for home buyers, including eligibility requirements.

To receive the tax credit, home buyers must comply with the IRS’s documentation requirements, including a fully executed IRS Form 5405. On the form, which is available on the IRS’s Web site, taxpayers provide information supporting their claim of eligibility, such as income and home purchase date.

The IRS also requires home buyers to submit a copy of the closing or settlement statement that proves the transaction took place. The IRS previously said that the statement should show “all parties’ names and signatures, property address, sales price, and date of purchase.” However, since closing or settlement statements vary by state, and in some cases the form does not include both the seller’s and buyer’s signatures, the IRS has revised this requirement. As long as the closing or settlement statement conforms to prevailing local practices, the IRS will accept it.

One stipulation for repeat buyers is they must provide documentation they lived in their former property for a consecutive five years out of the previous eight years. Accepted documentation may include property tax records, hazard insurance records, or copies of annual mortgage interest statements filed with their federal taxes.

Source: 2/25/10 C.A.R./LA Times

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Shopping for a loan? A good faith estimate will protect you

2010-03-08T10:22:00.000-08:00

Beginning Jan. 1, the Dept. of Housing and Urban Development (HUD) required lenders to issue Good Faith Estimates to protect consumers applying for mortgage loans. Some loan officers, however, sidestep the new requirement by giving their initial quotes on informal worksheets that carry no federal consumer protections. It is important that consumers understand the differences between the federally mandated good faith estimate form and a lender’s informal worksheet.

MAKING SENSE OF THE STORY FOR CONSUMERS

Last month, HUD told lenders and loan officers that under no circumstances can worksheet quotes be issued to a mortgage applicant in lieu of a good-faith-estimate form.
Under the new law, once a mortgage applicant supplies the essential application information, including Social Security number, property address, and estimated value, among other data, lenders must issue a binding-cost good-faith estimate. Once this information is provided, lenders are required to issue the good faith estimate within three days of the application.
Loan officers cannot refuse to provide a good faith estimate to an applicant who requests one, nor can they tell applicants that they must commit to moving forward with their mortgage company to obtain a mortgage prior to receiving a good faith estimate.
Once an applicant has received a good faith estimate, they can take the form with them to comparison shop. The new form includes itemized boxes allowing mortgage applicants to compare quotes from up to four lenders, such as interest rates, loan fees, prepayment penalties, and total settlement expenses.
The good faith estimate also ties upfront estimates to later charges at closing, and encourages borrowers to check line by line for any discrepancies. The form explains which fees come with zero tolerance for changes between upfront estimates and closing—generally the lender’s own fees and local transfer taxes—and which fees allow a 10 percent fluctuation for changes higher than the estimate, such as certain title and closing-related services.
Some worksheets resemble good-faith estimates, but have titles such as “estimated settlement costs” at the top of the page. Others indicate on the bottom of the form that the worksheet is not a good faith estimate, so consumers should carefully review documents before making any decisions.

Source: 3/4/10 CAR News/LA Times

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Banks Seek Payback from Walkaways

2010-02-03T13:48:00.000-08:00

Increasingly aggressive mortgage lenders are seeking to collect deficiencies from former home owners who walked away from their properties or sold them in short sales.

Many states, including Florida, give mortgage holders as long as five years to seek a deficiency judgment. If granted, the bank gets up to 20 years to collect and the option to renew for another 20 years if the debt isn’t paid.

About one-third of U.S. states, including California and Arizona, prohibit collection efforts after foreclosure, but home owners usually waive that protection in a refinance.

Most states allow collection on unpaid home-equity loans.

Banks are most likely to try to collect from people who walk away from a property in which they are still making payments.

“The bank is going to pull your credit report, and if you’re current on your other bills they are going to come after you and potentially ruin you,” says Larry Tolchinsky, a Florida real estate attorney.

Source: C.A.R., Bloomberg, Kathleen M. Howley (01/28/2010)

FHA Relaxes Anti-Flipping Rule

2010-02-03T13:43:00.000-08:00

Beginning Feb. 1, the Federal Housing Administration will provide mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.

The agency is changing what is known as the “anti-flipping rule” to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, says FHA Commissioner David H. Stevens.

Waiving the 90-day rule will encourage private investors to buy vacant properties, fix them up, and quickly sell them to buyers who will be eligible to buy them using FHA financing.

FHA's change "is going to be absolutely terrific" for first-time home buyers hoping to take advantage of the tax credit, says Bobby Taylor, an associate with Coldwell Banker Mountain West Real Estate in Salem, Ore.

Source: Washington Post (01/30/2010): C.A.R.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

California’s home inventory shrinks to 5-year low

2010-01-28T19:09:00.000-08:00

California’s Unsold Inventory Index (UII), a closely watched index indicating the number of months needed to deplete the supply of homes on the market at the current sales rate, declined to 3.8 months in December, the lowest level in five years, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). By comparison, the UII for existing, single-family homes stood at 5.6 months in December 2008.

MAKING SENSE OF THE STORY FOR CONSUMERS

Some economists believe that California’s housing inventory is artificially low because many discretionary sellers—homeowners who do not have to sell their homes—are waiting on the sidelines until home prices rise. Others believe there are more foreclosures to come, as unemployment in the state continues to rise. However, C.A.R. predicts that foreclosures will remain flat in 2010 compared with 2009, as lenders are listing properties for sale at a more metered pace.
California’s housing market has shown signs of stabilization since early last year. Sales of existing, single-family homes bottomed out in August 2007, and the median home price reached its trough in February 2009.
In December, the median price of an existing, single-family home rose to $306,820, an 8.4 percent rise year-over-year, the second consecutive year-over-year increase, and the 10th straight month-over-month increase, according to C.A.R.’s December sales and price report.
With affordability near-historic highs, low interest rates, and home buyer tax credits, many properties in California are receiving multiple offers and sparking bidding wars. Home buyers who find themselves in bidding wars should work closely with their REALTOR® to ensure they are crafting realistic offers that are more likely to be accepted by the seller.

Source: The Wall Street Journal, CAR News.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

FHA 90-day anti-flipping rule waived

2010-01-27T19:07:00.000-08:00

The Dept. of Housing and Urban Development (HUD) announced Friday it will eliminate for one year the Federal Housing Administration (FHA) 90-day anti-flipping rule.

FHA’s anti-flipping rule generally prohibits insuring a mortgage on a home owned by the seller for less than 90 days. That rule already has been waived for certain transactions, including REOs. Beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors. This one-year waiver will give FHA buyers access to a broader array of recently foreclosed properties.

Under the temporary waiver, all transactions must be made at arm’s-length and may require additional documentation of improvements and justification of certain price increases. Additional documentation may include a second appraisal and a property inspection ordered by the lender.

C.A.R. recently submitted a letter to FHA Commissioner David Stevens detailing the challenges facing many FHA home buyers, such as the lack of housing inventory available to them, and the need to revise this rule to reflect current market conditions. The reexamination of the 90-day anti-flipping rule was passed as an action item during C.A.R.'s board of directors meetings in October. (Source: CAR Newsline)

New rules for FHA borrowers

2010-01-27T19:04:00.000-08:00

The Federal Housing Administration (FHA) today outlined future changes to the FHA home loan program. The changes first were proposed last month by Secretary of Housing and Urban Development (HUD) Shaun Donovan.

Rising defaults on FHA loans have led to the FHA’s cash reserves falling below federally mandated levels. FHA officials hope that policy changes will ensure borrowers have a stronger equity position and are less likely to default.

Policy changes include:

Raising the up-front mortgage insurance premium: The premium will rise to 2.25 percent from its current 1.75 percent. HUD is expected to release a Mortgagee Letter on Jan. 21 making the premium increase effective in the spring.
Raising the minimum credit score requirements: New borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10 percent. FHA expects this to take effect in early summer after it goes through the normal regulatory process.
Reduce allowable seller concessions: The agency is lowering the maximum permissible level to 3 percent from its current 6 percent limit. FHA expects this to take effect in early summer after it goes through the normal regulatory process.

Source: CAR Newsline

What’s ahead for home prices?

2010-01-16T11:48:00.001-08:00

California remains ahead of the nation in market recovery with many first-time home buyers entering the market due to affordable home prices, low mortgage rates, and first-time home buyer tax credits from the state and federal governments. However, credit still is tight and unemployment remains high, which could hinder a full market recovery until 2011.

MAKING SENSE OF THE STORY FOR CONSUMERS

Home sales in California hit bottom more than two years ago, and the median home price of an existing, single-family home reached its trough in February, according to data collected by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). In November, the state’s median home price rose in year-to-year comparisons for the first time since August 2007.
C.A.R.’s closely watched "2010 California Housing Market Forecast,” projects that the median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 in 2009.
Some economists are forecasting another surge of foreclosures in 2010. However, C.A.R.’s economists expect that foreclosures will remain flat this year compared with 2009. In 2008, many lenders flooded the market with foreclosures, and as a result, the state’s median price declined by historic levels. By comparison, in 2009, lenders listed properties for sale at a more measured pace, which helped moderate another home price decline.
Government efforts to maintain a low interest rate environment have stabilized the market. However, a mortgage analyst at a financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent.

Source: MSN - http://realestate.msn.com/article.aspx?cp-documentid=23168167&GT1=35000

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Sellers Should List Homes Early

2010-01-11T11:36:00.000-08:00

Selling a home in the dead of winter might seem ill-advised, particularly considering the state of the economy, but some experts think that making the decision to wait until spring to list the property could be a mistake.

Government incentives will likely have a big impact in 2010, with many buyers determined to sign a contract before the April 30 tax credit deadline.

“This year, we're anticipating sales will peak earlier,” says Nicole Hall, editor in chief of Lendingtree.com, an online mortgage comparison service. “The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”

Traffic on real estate Web sites begins to rise right after the New Year, says Ken Shuman, spokesman for real estate Web site Trulia.com.

Source: Forbes.com, Francesca Levy (12/24/2009)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

A Decade of Dramatic Developments

2010-01-05T13:34:00.001-08:00

At the beginning of the 21st century, most home buyers had never viewed a home online; the three top home sale marketing methods were yard signs, newspaper ads, and open houses; and nearly nine out of 10 buyers financed their purchase with a fixed-rate, 30-year mortgage.

What a difference a decade makes.

“The real estate industry has seen tremendous change and evolution over the past decade,” said NATIONAL ASSOCIATION OF REALTORS® President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “As the first, best source for real estate information, REALTORS® have not only anticipated and adapted to the evolving needs of their clients and customers, but also have influenced industry trends and innovations that will carry us into the future.”

In 1999, buyers who went online in search for a home were in the minority – only 37 percent of buyers used the Internet in their home search, according to data from the NAR Profile of Home Buyers and Sellers. Today, 90 percent of buyers are searching online, and the real estate industry has responded. Sites like REALTOR.com, which attracts nearly 12 million total visits every month, have evolved to gives today’s buyers what they want – not just property listings, but multiple photos, online videos, mapping features, and comprehensive neighborhood information, as well.

Median home values over the past decade have increased more than 25 percent, from $137,600 in November 1999 to $172,600 in November 2009 (the most recent existing-home data available). Fewer people are buying detached, single family homes – 82 percent in 1999 compared to 78 percent in 2009 – but more people are buying homes in suburban neighborhoods – 46 percent in 1999 compared to 54 percent today.

Buyers themselves have also changed. A smaller proportion of married couples are buying homes these days; while married couples comprised 68 percent of all home purchases at the beginning of this century, they represent 60 percent of all buyers today. Single men and women have made up the difference – single men purchased 10 percent of all homes last year, compared to only 7 percent 10 years ago. Single women now represent more than one-fifth of all home buyers – 21 percent, up from 15 percent in 1999.

Other things haven’t changed. The median age for home buyers last year was 39, just as it was in 1999. Neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future.

“REALTORS® have been around for more than 100 years, but one constant during that time has been the persistence of homeownership as the American Dream,” said Golder. “As the first decade of this century comes to a close, NAR stands ready to meet the many challenges and opportunities that lie ahead by helping our REALTORS® members better serve their clients and communities and ensuring that those dreams of homeownership remain possible for all who want to achieve it.”

Source: NAR

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Inheriting Property Could Get Complicated

2010-01-05T13:31:00.000-08:00

(from 12-31-09)
If the U.S. Senate fails to pass an estate tax bill, the estate tax disappears Jan. 1. But it's not all good news. By law, the tax will reappear in 2011 with higher rates and lower exclusions.

Under the law that takes effect Jan. 1, taxpayers will face capital gains taxes on inherited property. The tax will be calculated on the original cost of the property to the person who has died. This could be extraordinarily complicated: “How much did grandpa pay for that piece of property 75 years ago?”

It is likely that the Senate will pass a one-year extension of the current law, with a retroactive date to Jan. 1, 2010, buying time to fix the situation. But that will almost certainly result in a rash of lawsuits that could make inheriting property in 2010 no less murky.

Source: Washington Post Writers Group, Kenneth R. Harney (12/28/2009)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

ZILLOW.com vs REALTOR.com

2009-12-16T10:25:00.001-08:00

I was helping one of my favorite clients this morning, when this topic came up. What is the difference between ZILLOW and other listing websites. Well here ya go...

There are 3 different ways to look up homes for sale. Most people start on a listing website like Zillow, Trulia or Realtor.com. (I know you will start at barbarainc.com though RIGHT!) They all start the same way; sign up, enter search criteria into the search box, and the search comes back with all of the listings that match the criteria. Zillow, Trulia and other real estate search engines all work the same way. In fact - your realtor will do the same exact thing - enter the search criteria into the local Multiple Listring Service (Aka: MLS.) But what is the difference??

Let me Take a moment to break it down for you as follows:

MLS - This is the tool that REALTORS subscribe too, to list homes for sale and invite other REALTORS to sell the listed homes to their clients. The MLS is updated in real time and has everything in the county listed; Mobile Homes, Manufactured Homes, Lot/Land, Condo's, Houses, Apartment Buildings and even Business Opporitunities and Commercial Office Leasing.

There is a Spot for apartment managers to list their apartments for rent too, but 95% of them do not want to pay the monthly fee's for the MLS, for a rental that will be taken in 3 weeks, and then have to pay a realtor a sevice fee for finding them a warm body to fill that apartment. For this reason, my renter friends, there are not very many rentals available on the MLS. I would try Craigslist!

The MLS is a powerful tool. The only thing I have found that it lacks in is the "For Sale By Owner" (Aka: FSBO - pronounced fizz-bo) Information, which there are very few of anyhow. If you are searching with a REALTOR and see a FSBO that you like - Let them know. Don't be afraid. Chances are they have seen it, but just in case they have missed the ad, let your agent know.

The coolest part of the MLS is that your agent can set up an automatic search to send you an e-mail anytime something new comes on the market. You may want to weed out all of the Short Sale's for example, or you may only want foreclosed homes in your list. Either way it is the fastes and most accurate way of staying up-to-date with your local market.

REALTOR.com - Probably the best site available to consumers to search property all over the Nation! This site is updated a few times per day with all of the MLS feeds from around the continental United States. It is the ONLY direct MLS feed site that I advise using. Thedownfall is that you cannot sort out thedifferent types of sales. Such as Short Sales, Foreclosure, or traditional sales. Bummer Dude!

ZILLOW.com, TRULIA.com, Etc. - These are by far some of the worst places to look for homes. They are fun, and pretty, and provide a little bit of insight... but not much. These sites are NOT... I repeat ARE NOT linked to ANY MLS FEEDS!!!!! Thses sites are only user updated, and the information can be WAY OFF! Especially if you are using it to find the value of your own home. It is misleading and most people have no idea how far mis-lead they are. For instance I had a client who exhausted the available inventory in Santee on REALTOR.com, and started looking on Zillow.com for more listing that might be available. Sounds Innocent enough. But the listings she broght back to me were SOLD anywhere from 5 months to 15 months earlier. The problem here, is that the agent who manually entered the information for the listing that they wanted to sell - forgot to (or decided not to, because they love the phone calls) - go back in and edit the listing as SOLD. The agent also forgot to tell us how much it sold for, which throws off the neighborhood values in that area, creating a domino effect.

Another awesome example of the accuracy of these websites is the listing that was on "Honey stop the car" street and another on "Spacious" in santee. They were mearley an ad that an agent put up to get calls about a listing that didn't even exist.

Needless to say, If you are looking for a house on Spacious St or Honey Stop The Car Ln in santee, I am now the Listing agent for those awesome homes on zillow.com. If this is your home, please call me ASAP! - I have put the Links below:

http://www.zillow.com/homedetails/Honey-Car-STOP-THE-Santee-CA-92071/2140043925_zpid/

http://www.zillow.com/homedetails/Spacious-Santee-CA-92071/2140043919_zpid/

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com
Barbarainc@gmail.com

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

New foreclosure alternatives program

2009-12-11T09:57:00.001-08:00

The U.S. Dept. of the Treasury last week announced the Home Affordable Foreclosure Alternatives Program (HAFA), which provides financial incentives to servicers, borrowers, and investors for a closed short sale or a deed-in-lieu (DIL).

The HAFA program simplifies and encourages short sale and DIL options by:

Allowing pre-approved short sale terms before a property is listed;
Preventing servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval; and
Releasing borrowers from future liability for the debt.

Borrowers not eligible for the Home Affordable Mortgage Program must be considered for HAFA within 30 calendar days of the date the borrower does not qualify for a HAMP Trial Period Plan; does not successfully complete a HAMP Trial Period Plan; is delinquent on a HAMP modification by missing at least two consecutive payments; or requests a short sale or DIL.

More info --> https://www.hmpadmin.com//portal/docs/news/hampupdate113009.pdf

30-Year Rates Hit Record Low

2009-12-07T07:33:00.000-08:00

The average interest rate for 30-year mortgages has fallen to the lowest level since Freddie Mac began compiling its weekly survey in 1971, declining to 4.71 percent this week from 4.78 percent a week ago.

Rates also were more attractive for 15-year fixed loans, which fell from 4.29 percent to 4.27 percent, but many consumers may not have qualified for them because they now face higher credit standards from lenders.

Still, the Mortgage Bankers Association's index of application demand, which rose 2.1 percent on a seasonally adjusted basis during Thanksgiving week from the previous week, shows that consumers were looking to take advantage of mortgage rates at a historic low.

Source: USA Today, Stephanie Armour (12/04/09)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Banks Start to Embrace Short Sales

2009-12-07T07:30:00.000-08:00

Even before the government put pressure on them to embrace short sales, more banks were starting to take their lumps, do the short-sale deals and move on.

Three years into the housing meltdown, short sales have tripled to 40,000 in the first six months of 2009, compared to the same time period a year ago, according to data from the Office of Thrift Supervision and the Office of the Comptroller of the Currency.

Wells Fargo, Bank of America Corp., and JPMorgan Chase & Co. this year have hired and trained more staff to handle short sales and also developed software for expediting them.

“It’s really finally dawning on banks that they’re better off with a short sale,” said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California in Los Angeles. “I think banks were in denial.”

Source: Bloomberg, John Gittelsohn and Margaret Collins (12/4/2009)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Option-ARM Borrowers Facing Resets

2009-12-03T07:31:00.000-08:00

About 93 percent of option-ARM buyers chose to pay a minimum amount less than the interest due, according to a report released last week by Standard & Poors. That means that nearly all of the 350,000 option-ARM borrowers now owe more than they owed when they first purchased their homes.

Many of these loans were written in 2004 and are close to their five-year reset when the loans convert to a standard amortization. Some more recent loans will reset early if the accumulated interest has pushed the loan-to-value ratio above 110 percent.

In one example outlined in the S&P report, the payment on a $400,000 mortgage goes from $1,287 to $2,593.

The authors of the report say that many ARM borrowers aren’t good candidates for refinancing or modification because their loan-to-value ratios are too high for the government’s Making Home Affordable program. Also, about 80 percent of option-ARM loans were stated-income loans and borrowers could be held legally liable for deliberate inaccuracies on their original applications.

Source: CNNMoney.com, Les Christie (11/26/2009)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Government Announces Short Sales Guidelines

2009-12-03T07:08:00.000-08:00

The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly.

To qualify under these new guidelines:

The property must be the home owner’s principal residence.
The home owner must be delinquent on the mortgage or close to defaulting.
The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.

Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

New $6,500 federal tax credit for “move-up” home buyers may benefit you

2009-12-01T08:49:00.000-08:00

The federal government recently extended and expanded the federal tax credit for home buyers. The tax credit now concludes June 30, 2010 instead of Nov. 30, 2009, and also includes existing homeowners who meet certain qualifications.

MAKING SENSE OF THE STORY FOR CONSUMERS

Current homeowners are eligible for a $6,500 federal tax credit if they have lived in their current home for a consecutive five out of the last eight years, and the adjusted household income does not exceed $125,000 for single files or $225,000 for join filers.
The expanded tax credit went into effect Nov. 6, the day President Obama signed the bill. Homes that close escrow between Nov. 6, 2009 and June 30, 2010 are eligible to apply for the tax credit.
The legislation does not require homeowners to sell their current residence; however, the new home must be the primary residence and the price of the home must not exceed the limit of $800,000. Homeowners who plan to retain their current home as a rental or second home are advised to move into the new home the day escrow closes so there is no question it was the principal residence at the time of the tax credit.
Almost all housing types are eligible, including new and existing single-family homes, condominiums, manufactured or mobile homes, and boats that serve as the owner’s principal residence. Second homes and investment properties are not eligible.
Home buyers in 2009—those who close after Nov. 6, but no later than Dec. 31, can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns. Similarly, eligible buyers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns. All home buyers should talk to a tax advisor regarding timing decisions.

Source: CAR Market Matters newsletter

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Market Snapshot for November

2009-11-20T09:53:00.000-08:00

The median price of an entry-level home in California was $247,150 in the third quarter of 2009, making the estimated monthly payment including taxes and insurance $1,450, according to C.A.R.’s affordability index.
The minimum household income needed to purchase an entry-level home in California in the third quarter of 2009 was $43,500.
First-time buyers typically purchase a home equal to 85 percent of the prevailing median price.
Affordability in California during the third quarter of 2009 stood at 64 percent, meaning 64 percent of the state’s households could afford to purchase an entry-level home in California, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ First-time Buyer Housing Affordability Index.

Source: CAR Market Matters News

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

N.A.R. Convention Photo

2009-11-19T21:05:00.000-08:00

My Husband and I at the National Associaltion of Realtor's Convention in Downtown San Diego 2009. He started to talk right when the camera clicked so excuse the expression.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Condo vs Townhome: What does it all mean?

2009-11-14T10:10:00.000-08:00

If you own real estate or are considering buying real estate, then you’ve probably run across terms such as single-family home, townhouse, townhome, row house, condo and condominium. What do these terms mean and is it better to own one type of property over another?

Let’s begin by clarifying these terms. The confusion surrounding these terms has to do with the distinction of how people legally own property vs. the type of property owned. While there are many ways to legally own property, the two most common methods are Fee Simple (sometimes called Fee Simple Absolute) and Condominium.

A brief definition of Fee Simple is having an unqualified ownership interest in a property or other real estate. In most cases, people who own a home in Fee Simple not only own the home’s interior and exterior, but they also own the land beneath, and in front and back of the property, as well as having some rights to the air space above the property. In contrast, people who own property as a Condominium, only own the inside of the unit itself. The land below the property, the air space above the property, the front and back yards (if any), the exterior of the unit, the stairs and grass areas outside of the unit (if any), are all owned collectively by all the unit owners within the condominium development.

So now that we’ve discussed how property is typically owned, let’s review briefly the various property types. The most common type of property in the United States is a single-family home (SFH). SFH's are usually detached structures that have one or two levels, a front and back yard, and are designed to meet the needs of a single family. SFH's are typically sold as Fee Simple, although you will run across SFH's that are sold as condominiums.

A condominium, condo for short, is a single unit that is usually attached to other units within a larger complex. Condo owners only own the inside of an individual unit. Collectively, all unit owners within a development own all the structures and land outside of the individual units. Condos usually share common walls with the units above, below, and to either side, and all owners share the costs of maintaining the structures and land external to the units. You might be interested to know that many buildings that look like apartment complexes are actually individually-owned condos. However, not all condominiums are attached units. In fact, more and more detached homes are now being sold as condominium ownership.

The terms townhome, row house, and townhouse are often used interchangeably. These terms describe a consecutive series of similar residential units that may or may not share common walls with the adjacent units. These properties usually have two or more levels, may or may not sit on individual lots, and may or may not have front or backyards. These types of properties could be sold Fee Simple, Condominium, or some other type of ownership method, so it’s important to know what you’re getting.

The confusion then lies in what term is being used in what way. A townhouse, townhome, row, single-family home could be either Fee Simple, Condominium, or something else. If a property is advertised as a condo, then the method of ownership is readily obvious--condominium ownership.

Each of the ownership methods and property types above have advantages and disadvantages. If you’re considering buying real estate, be sure to talk to your Real Estate Agent, legal advisor, and/or financial advisor about the pros and cons of various ownership methods and different property types before making any purchase decision. Source: sdhomedatabase.com

Derogitory Credit Mark? FHA Loans - Looser than Conventional

2009-11-09T13:48:00.000-08:00

Guidelines for Credit Report Review (05/10/09)

Introduction

This topic contains information on the credit report items for lenders to review, including

• the hierarchy of credit review

• the review of previous rental or mortgage payment history

• recent and/or undisclosed debts and inquiries

• collections and judgments

• paying off collections and judgments

• previous mortgage foreclosure

• Chapter 7 bankruptcy

• Chapter 13 bankruptcy

• consumer credit counseling payment plans

• use of truncated SSNs on credit reports, and

• a reference for information on evaluating non-traditional/insufficient credit.

Change Date

May 10, 2009

4155.1 4.C.2.a Hierarchy of Credit Review

The basic hierarchy for evaluating credit involves reviewing how payments were made on the

following:

• previous housing expenses, including utilities, then

• payment history on installment debts, then

• payment history on revolving accounts.

Generally, a borrower is considered to have an acceptable credit history if he/she does not have

late housing or installment debt payments, unless there is major derogatory credit on his/her

revolving accounts.

4155.1 4.C.2.b Reviewing Previous Rental or Mortgage Payment History

The borrower's housing obligation payment history holds significant importance when evaluating credit. The lender must determine the borrower's housing obligation payment history through the:

• credit report

• verification of rent directly from the landlord (for landlords with no identity-of-interest with

the borrower)

• verification of the mortgage directly from the mortgage servicer, or

• the review of canceled checks that cover the most recent 12-month period.

4155.1 4.C.2.c Recent and/ or Undisclosed Debts and Inquiries

Lenders must determine the purpose of any recent debts as the indebtedness may have been

incurred to obtain the required cash investment.

A borrower must provide a satisfactory explanation for any significant debt that is shown on the

credit report, but not listed on the loan application.

Written explanation is required for all inquiries shown on the credit report for the last 90 days.

Total Scorecard Accept Recommendation

• verify the actual monthly payment amount

• include the monthly payment amount and resubmit the loan if the liability is greater than

$100 per month (Note: Direct verification is not required), and

• determine that any funds borrowed were

Reference: For more information on the TOTAL Scorecard recommendation, see Page 17 of the

TOTAL Scorecard User's Guide.

4155.1 4.C.2.d Collections and Judgments

Collections and judgments indicate a borrower's regard for credit obligations, and must be

considered in the creditworthiness analysis.

The lender must document reasons for approving a mortgage when the borrower has collection

accounts or judgments. The borrower must explain, in writing, all collections and judgments.

Total Scorecard Accept Recommendation

Collection accounts trigger neither an explanation requirement nor a hypothetical monthly

payment to be used in qualifying borrowers. The presence of collection accounts in the

borrower's credit history already result in lowering the credit bureau scores used in TOTAL and, thus, no further information need be provided by the borrower.

Reference: For information on paying off collections and judgments, see HUD 4155.1 4.C.2.e.

4155.1 4.C.2.e Paying off Collections and Judgments

FHA does not require that collection accounts be paid off as a condition of mortgage approval.

However, court-ordered judgments must be paid off before the mortgage loan is eligible for FHA

insurance endorsement.

Exception: An exception on a court-ordered judgment may be made if the borrower:

• has an agreement with the creditor to make regular and timely payments, and

• has provided documentation indicating that payments have been made according to the

agreement.

Total Scorecard Accept/Refer Recommendation

TOTAL Scorecard Accept and Refer recommendations require that the lender obtain evidence of payoff for any outstanding judgments shown on the credit report.

Reference: For more information on the TOTAL Scorecard recommendation, see Page 18 of the

TOTAL Scorecard User's Guide.

4155.1 4.C.2.f Previous Mortgage Foreclosure

A borrower is generally not eligible for a new FHA-insured mortgage when, during the previous

three years:

• his/her previous principal residence or other real property was foreclosed, or

• he/she has given a deed-in-lieu of foreclosure.

Exception: The lender may grant an exception to the three-year requirement if the foreclosure

was the result of documented extenuating circumstances that were beyond the control of the

borrower, such as a serious illness or death of a wage earner, and the borrower has reestablished good credit since the foreclosure. Divorce is not considered an extenuating

circumstance. However, the situation in which a borrower whose loan was current at the time of

a divorce in which the ex-spouse received the property and the loan was later foreclosed

qualifies as an exception.

Note: The inability to sell the property due to a job transfer or relocation to another area does

not qualify as an extenuating circumstance.

4155.1 4.C.2.g Chapter 7 Bankruptcy

A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHAinsured mortgage, if at least two years have elapsed since the date of the discharge of the

bankruptcy. During this time, the borrower must:

• have reestablished good credit, or

• chosen not to incur new credit obligations.

An elapsed period of less than two years, but not less than 12 months may be acceptable for an

FHA-insured mortgage, if the borrower:

• can show that the bankruptcy was caused by extenuating circumstances beyond his/her

control, and

• has since exhibited a documented ability to manage his/her financial affairs in a

responsible manner.

Note: The lender must document that the borrower's current situation indicates that the events

that led to the bankruptcy are not likely to recur.

4155.1 4.C.2.h Chapter 13 Bankruptcy

A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured

mortgage, provided that the lender documents that:

• one year of the payout period under the bankruptcy has elapsed, and

• the borrower's payment performance has been satisfactory and all required payments have

been made on time.

The borrower must receive written permission from the court to enter into the mortgage

transaction.

Total Scorecard Accept Recommendation

Lender documentation must show two years from the discharge date of a Chapter 13

bankruptcy or the loan must be referred to an underwriter.

Reference: For more information on the TOTAL Scorecard recommendation, see the TOTAL

Mortgage Scorecard User's Guide.

4155.1 4.C.2.i Consumer Credit Counseling Payment Plans

Participating in a consumer credit counseling program does not disqualify a borrower from

obtaining an FHA mortgage, provided the lender documents that:

• one year of the pay-out period has elapsed under the plan, and

• the borrower's payment performance has been satisfactory and all required payments have

been made on time.

The borrower must receive written permission from the counseling agency to enter into the

mortgage transaction.

Total Scorecard Accept Recommendation

The borrower's decision to participate in consumer credit counseling does not trigger a

requirement for additional documentation since the credit scores already reflect the degradation

in credit history. The borrower's credit history, not voluntary participation in consumer credit

counseling, is the important variable in scoring the mortgage and, thus, no explanation or other

documentation is needed.

4155.1 4.C.2.j Use of Truncated SSNs on Credit Reports

In an effort to reduce the risk of identity theft and other forms of financial fraud, some providers

of consumer credit reports have begun using a truncated version of an individual's Social

Security Number (SSN) on the credit report product that is offered.

A truncated SSN, that contains as few as the last four digits of a borrower's full number, is

acceptable for FHA mortgage insurance purposes provided that:

• the loan application captures the full 9-digit SSN, and

• the borrower's name, SSN and date of birth are validated through the FHA Connection or

its functional equivalent.

4155.1 4.C.2.k Evaluating Nontraditional/ Insufficient Credit Reference

For guidelines for evaluating borrowers with nontraditional or insufficient credit histories, see

HUD 4155.1 4.C.3.

Source: Felisa Schlosser - Prospect Mtg - 858-550-2528 - felisa.schlosser@prospectmtg.com

Fannie Mae: Credit After Foreclosure, Bankruptcy, or Short Sale

2009-11-07T11:17:00.000-08:00

One of the concerns a consumer has after experiencing a bankruptcy, foreclosure, or short sale (referred to as a "preforeclosure sale" by Fannie Mae) is the ability to obtain credit to purchase another home. Fannie Mae has updated its credit guidelines. This legal article summarizes those guidelines in Part I. In addition, since lenders use FICO scores in order to determine the creditworthiness of a borrower, this article covers the impact of a bankruptcy, foreclosure or short sale on FICO scores in Part II.

I. Fannie Mae Credit Guidelines

Q 1. How long is the time period after a foreclosure before a consumer can be eligible to obtain credit to purchase a home?

A Five years from the date the foreclosure sale was completed.

Additional requirements that apply after 5 years and up to 7 years following the completion date are as follows:

^. The purchase of a principal residence is permitted with a minimum 10 percent down payment and minimum representative credit score of 680.
^. Purchase of a second home or investment property is not permitted.
^. Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
^. Cash-out refinances are not permitted for any occupancy type.

(Source: FNMA Announcement 08-16, 6-25-08 )

Q 2. Why do the additional requirements for foreclosures in Question 1 only apply from 5 to 7 years following the foreclosure completion date?

A According to Fannie Mae policy in Part X, Section 103 of the Selling Guide, Fannie Mae requires only a 7-year history to be reviewed for all credit and public record information. The 7-year timeframe also aligns with the information provided by the borrower on the loan application relative to disclosure of a past foreclosure action. (Source: FNMA Selling Guide, 4-1-09. )

Q 3. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the foreclosure?

A Yes. Three years from the date the foreclosure sale was completed. The same additional requirements apply as listed in Question 1 except the minimum credit score of 680 is not required. (Source: FNMA Announcement 08-16, 6-25-08. )

Q 4. What are"extenuating circumstances" ?

A Fannie Mae describes "extenuating circumstances" as follows:

Extenuating circumstances are nonrecurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.
If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower's claim. Examples of documentation that can be used to support extenuating circumstances include documents that confirm the event (such as a copy of a divorce decree, medical bills, notice of job layoff, job severance papers, etc.) and documents that illustrate factors that contributed to the borrower's inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, listing agreements, lease agreements, tax returns (e.g., covering the periods prior to, during, and after a loss of employment).
The lender must obtain a letter from the borrower explaining the relevance of the documentation. The letter must support the claims of extenuating circumstances, confirm the nature of the event that led to the bankruptcy or foreclosure-related action, and illustrate the borrower had no reasonable options other than to default on his or her financial obligations.
(Source: FNMA Selling Guide, 4-1-09 at 391. )

Q 5. How long is the time period after a deed-in-lieu of foreclosure before a consumer can be eligible to obtain credit to purchase a property?

A Four years from the date the deed-in-lieu was executed.

Additional requirements that apply after 4 years and up to 7 years following the completion date are as follows:

^. Borrower may purchase a property secured by a principal residence, second home, or investment property with the greater of 10 percent minimum down payment or the minimum down payment required for the transaction.
^. Limited-cash-out and cash-out refinance transactions secured by a principal residence, second home, or investment property are permitted pursuant to the eligibility requirements in effect at that time.

(Source: FNMA Announcement 08-16, 6-25-08. )

Q 6. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the deed-in-lieu of foreclosure?

A Yes. Two years from the date the deed-in-lieu was executed. The same additional requirements apply as listed in Question 4 after 2 years up to 7 years. (Source: FNMA Announcement 08-16, 6-25-08. )

See Question 4 for the definition of "extenuating circumstances."

Q 7. How long is the time period after a "preforeclosure sale" before a consumer can be eligible to obtain credit to purchase a property?

A Two years from the completion date. No exceptions are permitted to the 2-year period due to extenuating circumstances. (Source: FNMA Announcement 08-16, 6-25-08. )

Q 8. What is a "preforeclosure sale" mentioned in Question 6 and is that the same as a short sale?

A "A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satify the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer" (Source: FNMA Announcement 08-16, 6-25-08 ).

Although the terms preforeclosure sale and short sale have been used interchangeably, there is a significant difference for purposes of obtaining credit. For Fannie Mae purposes, a preforeclosure assumes that the borrower has been delinquent in paying his or her mortgage and the lender agrees to accept a lesser amount to avoid the time and expense of a foreclousre action. A short-sale, however, can also refer to situations in which the lender of the mortgage agrees to a payoff of a lesser amount than is actually owed, even on a current mortgage, to facilitate the sale of the property to a third party. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 9. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the preforeclosure (short) sale?

A No. There are no exceptions to the 2-year time period. (Source: FNMA Announcement 08-16, 6-25-08. )

Q 10. If a borrower sold his or her property as a short sale but was never delinquent on that mortgage and is now attempting to purchase a new primary residence, will Fannie Mae purchase the loan?

A The loan will be eligible for delivery to Fannie Mae provided that the borrower's previous mortgage history complies with Fannie Mae's excessive prior mortgage delinquency policy--that is the borrower does not have one or more 60-, 90-, 120-, or 150-day delinquencies reported within the 12 months prior to the credit report date--and the borrower has not entered into any agreement with the short sale lender to repay any amounts associated with the short sale, including a deficiency judgment. (Source: FNMA Announcement 08-16 Q&A, 8-13-08 ; FNMA Selling Guide, Part X, Chapter 3, Section 302.09. .)

Q 11. Are preforeclosure (short) sales and deed-in-lieu of foreclosure actions identified on a credit report?

A Preforeclosure sales may be reported as "paid in full" with a "settled for less than owed" remarks code, and the mortgage tradeline would indicate any recent delinquency. A deed-in-lieu may be reported by a remarks code indicating a deed-in-lieu. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 12. How long is the time period after a bankruptcy (all except Chapter 13) before a consumer can be eligible to obtain credit to purchase a property?

A Four years from the discharge or dismissal date of the bankruptcy action (Source: FNMA Announcement 08-16, 6-25-08 ).

Q 13. How long is the time period after a Chapter 13 bankruptcy before a consumer can be eligible to obtain credit to purchase a property?

A Two years from the discharge date and four years from the dismissal date (Source: FNMA Announcement 08-16, 6-25-08 ).

Q 14. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the bankruptcy (all actions)?

A Yes. Two years from the discharge or dismissal; however, no exceptions are permitted to the 2-year time period after a Chapter 13 discharge (Source: FNMA Announcement 08-16, 6-25-08 ).

See Question 4 for the definition of "extenuating circumstances."

Q 15. How long is the time period after multiple bankruptcy filings before a consumer can be eligible to obtain credit to purchase a property?

A Five years from the most recent dismissal or discharge date for borrowers with more than one bankruptcy filing within the past 7 years (Source: FNMA Announcement 08-16, 6-25-08 ).

Q 16. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the multiple bankruptcies?

A Yes. Three years from the most recent discharge or dismissal date. The most recent bankruptcy filing must have been the result of extenuating circumstances. (Source: FNMA Announcement 08-16, 6-25-08. )

See Question 4 for the definition of "extenuating circumstances."

Q 17. What is the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy?

A Chapter 13 permits a borrower with a regular income to propose a plan to repay some or all of his or her obligations over a period of up to five years. A borrower who files a Chapter 7 is permitted to retain exempt assets and receive a discharge of the borrower's debts. Chapter 7 is a relatively quick liquidation process that is generally completed within 120 days. Chapter 7 cases are rarely dismissed. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 18. What is the difference between a Chapter 13 dismissal and a Chapter 13 discharge?

A A borrower who files a Chapter 13 can dismiss the case at any time (voluntary dismissal) or the case may be dismissed by the court based on the borrower's failure to comply with the requirements of the Bankruptcy Code or to make the required payments. If the borrower who files a Chapter 13 case makes all of the payments required by the plan, the borrower receives a discharge at the end of the plan. A borrower who doesn't make all the payment required by the plan may still receive a discharge if the court finds, among other things, that the borrower made a certain amount of the payments and the borrower's failure to make all of the payments was due to circumstances beyond the borrower's control. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 19. What are the requirements to re-establish a credit history?

A After a bankruptcy or foreclosure-related action, a credit history must meet the following rquirements to be considered re-established:

^. It must meet the requirements for elapsed time (as discussed in this article).
^. It must reflect that all accounts are current as of the date of the mortgage application.
^. it must include a minimum of four credit references. At least one of the references must be a traditional credit reference, and one of the references must be housing-related.
(1) A housing-related reference must cover the period following the bankruptcy discharge or dismissal, foreclosure, or deed-in-lieu, and can be in the form of mortgage payments or rental payments.
(2) If rental payments wre not reported to the credit repositories, the lender must obtain copies of bank statements, money orders, or canceled checks for the most recent 12-month period as a supplement to the rent verification.
^. It must reflect three of the four credit references, including rental housing references, as active in the 24 months preceding the date of the mortgage application.
^. It must include no more than two installment or revolving debt payments 30 days past due in the last 24 months.
^. It must include no installment or revolving debt payments 60 or more days past due since the discharge or dismissal of the bankruptcy or the completion of the foreclosure-related action.
^. It must include no housing debt payments past due since the discharge or dismissal of the bankruptcy or the completion of the foreclosure-related action.
^. It must include no new public records since the discharge or dismissal of the bankruptcy or the completion of the foreclousre-related action. Public records include bankruptcies, foreclosures, deeds-in-lieu, preforeclosure sales, unpaid judgments or collections, garnishments, liens, etc.

(Source: FNMA Selling Guide, 4-1-09 at 392. )

II. Bankruptcy, Foreclosure, and Short Sale and the Impact on a FICO® Score

Q 20. What is a FICO® Score?

A A FICO® score is a number representing the creditworthiness of a person or the likelihood that person will pay his or her debts. The three credit reporting agencies, Equifax, Experian, and TransUnion, collect data about consumers in order to compile credit reports. The credit agencies use FICO® software to generate FICO® scores, which are then sold to lenders. Actually FICO® is just one of the several credit scoring systems available. The Fair Isaac Corporation (known as FICO®) created the first credit scoring system in 1958. Others are NextGen, VantageScore, and the CE Score. They all evaluate the creditworthiness of a borrower. However, FICO appears to be the most-used credit scoring system. A FICO® score is between 300 and 850. The higher the better the credit.

Each consumer has three credit scores at any given time for any given scoring model because the three credit agencies have their own databases, gather reports from different creditors, and receive information from creditors at different times.

Q 21. What factors go into determining a FICO® score?

A Credit scores are designed to measure the risk of default by taking into account various factors in a person's financial history. Although the exact formulas for calculating credit scores are closely-guarded secrets, FICO® has disclosed the following components and the approximate weighted contribution of each:

35% — Payment History – Late payments on bills, such as a mortgage, credit card or automobile loan, can cause a consumer’s FICO® score to drop. Paying bills as agreed over time will improve a consumer’s FICO® score.
30% — Credit Utilization - The ratio of current revolving debt (such as credit card balances) to the total available revolving credit (credit limits). Consumers can improve their FICO® scores by paying off debt and lowering their utilization ratio. The closing of existing revolving accounts will typically adversely affect this ratio and therefore have a negative impact on the FICO® score.
15% — Length of Credit History – As a consumer's credit history ages, assuming the consumer pays his or her bills, it can have a positive impact on the FICO® score.
10% — Types of Credit Used (installment, revolving, consumer finance) – Consumers can benefit by having a history of managing different types of credit.
10% — Recent search for credit and/or amount of credit obtained recently - Multiple credit inquiries for a consumer seeking to open new credit, such as credit cards, retail store accounts, and personal loans, can hurt an individual’s score. Applying for lots of new credit in a short period of time is also viewed as risky and can cause a drop in an individual’s score. However, individuals shopping for a mortgage or auto loan over a short period will likely not experience a decrease in their scores as a result of these types of inquiries.

(Source: http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx)

Q 22. How does a mortgage modification affect my FICO® score?

A FICO® credit scores are calculated from the information in consumer credit reports. Whether a loan modification affects the borrower's FICO® score depends on whether and how the lender chooses to report the event to the credit bureau, as well as on the person's overall credit profile. If a lender indicates to a credit bureau that the consumer has not made payments on a mortgage as originally agreed, that information on the consumer's credit report could cause the consumer's FICO® score to decrease or it could have little to no impact on the score.

(Source: http://www.myfico.com/crediteducation/questions/Mortgage_Modification.aspx)

Q 23. How does a bankruptcy affect my FICO® score?

A A bankruptcy is considered a very negative event regardless of the type. A bankruptcy is factored into your FICO® score until it is removed from your credit report. As long as the bankruptcy is listed on your credit report, it will be factored into your score. If you are considering bankruptcy as an alternative to foreclosure, keep in mind that it may have a greater impact on your FICO® score.

Typically, you can expect bankruptcies to remain on your credit report, from the date filed, as follows:

(1) Chapter 11 and Chapter 7 bankruptcies up to 10 years.

(2) Completed Chapter 13 bankruptcies up to 7 years.

These time periods refer to the public record item associated with filing for bankruptcy. All of the individual accounts included in the bankruptcy should be removed from your credit report after 7 years. (Source: http://www.myfico.com/crediteducation/Questions/Bankruptcy-Types.aspx)

If you plan to file a bankruptcy, here are some things you should do to make sure your creditors are accurately reporting the bankruptcy filing:

(1) Check your credit report to ensure that accounts that were not part of the bankruptcy filing are not being reported with a bankruptcy status.
(2) Make sure your bankruptcy is removed as soon as it is eligible to be "purged" from your credit report.

After a bankruptcy has been filed, the sooner you begin re-establishing credit in good standing, the sooner you can expect your FICO® score to rebound. A good practice is to obtain a secured credit card and continually make all of your payments on time. As time passes and the impact of the bankruptcy lessens, you might apply for a traditional credit card and also continually make all of your payments on time.

(Source: http://www.myfico.com/crediteducation/questions/Bankruptcy-Reach.aspx)

Q 24. How does a short sale, deed-in-lieu-of foreclosure. or a foreclosure affect my FICO®score?

A The alternatives to foreclosure, such as a deed-in-lieu of foreclosure or a short sale, aren’t any better as far as a FICO® score is concerned.

The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all "not paid as agreed" accounts, and considered the same by your FICO® score. This is not to say that these may not be better options for you from a financial or tax perspective, just that they will be considered no better or worse for your FICO® score.

If you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact on your FICO® score. While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has potential to have a greater negative impact on your FICO® score.

(Source: http://www.myfico.com/CreditEducation/Questions/foreclosure-alternatives-fico-score.aspx)

Q 25. What won't affect my FICO® score?

A The following information is not considered by the FICO® scoring formula:

^. Your race, color, religion, national origin, sex, or marital status

^. Your age

^. Your salary, occupation, title, employer, date employed, or employment history

^. Where you live

^. Any interest rate being charged on a particular credit card or other account

^. Certain types of inquiries (such as promotional, account review, insurance or employment-related inquiries)

^. Credit counseling

^. Any information not found in your credit report

^. Any information that is not proven to be predictive of future credit performance

(Source: http://myfico.custhelp.com/cgi-bin/myfico.cfg/php/enduser/std_adp.php?p_faqid=55)

Readers who require specific advice should consult an attorney.

Source:

CALIFORNIA ASSOCIATION OF REALTORS®
Member Legal Services
525 South VirgilAvenue
Los Angeles, California 90020

Member Legal Services
Tel 213.739.8200
Fax 213.480.7724
October 13, 2009 (revised)

Copyright© 2009, CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) Permission is granted to C.A.R. members only to reprint and use this material for non-commercial purposes provided credit is given to the C.A.R. Legal Department. Other reproduction or use is strictly prohibited withoutthe express written permission of the C.A.R. Legal Department. All rights reserved.

Should you buy that condo?

2009-10-28T11:35:00.000-07:00

Purchasing a condo often is the first step in the homeownership process, and can be a good opportunity for first-time buyers. However, as more homeowners living in community developments with homeowner associations find themselves in trouble, many are not paying their dues. As a result, residents who do pay their HOA dues are seeing increases in their monthly bills or unexpected special assessments. This is especially true for communities that do not have enough funds in reserves to pay for property maintenance and repairs. Buyers considering the purchase of homes in community developments with HOAs are advised to closely monitor the homeowner association’s financial health.

MAKING SENSE OF THE STORY FOR CONSUMERS

· Buyers are advised to request all financial documents relating to the homeowners’ association during the home inspection period. In most cases, buyers receive these documents one to two days before closing, or find they are incomplete. Financial advisors recommend that buyers work with their REALTOR® to ensure the documents are received in a timely manner—preferably with at least three days to review.

· When reviewing the financial documents, buyers should note that two-thirds of the association’s budget should be operating expenses such as water, lights, elevator maintenance, and landscaping; the rest should be set aside in a reserve fund for long-term maintenance and repairs.

· If the expenses exceed revenues due to foreclosures, unpaid dues, or other reasons, buyers should ask the association’s manager or board of directors what its plans are to make up for the shortfall, and whether the association expects an assessment or higher dues. It also is important to note if the financial deficit will be made up with shorter pool hours, or a reduction in landscaping and other community amenities, as these could affect not only the comfort of the community, but also the future marketability of the property.

· While the financial health of a homeowners’ association is an important factor in the purchasing decision, it shouldn’t deter home buyers from purchasing condos. Many first-time buyers purchase condos to enable them to become homeowners. Typically, condos are more affordable than single-family homes, offer community amenities, and may allow a buyer to purchase a home in a highly desirable area where they otherwise could not afford.

· Although not required, it is becoming more common for associations to hire outside firms to look at all long-term anticipated repairs and replacements within communities over a period of 30 years, add up the costs, and create a payment and maintenance schedule. The monthly dues charged to each owner should reflect the amount of money needed to pay for the necessities.

· Associations ideally should save enough money over time to pay for every contingency, such as roof leaks, pipe bursts, sidewalk cracks, and the like. However, most associations often deplete reserve funds to pay for operating costs and other expenses. Although the percentage of funding necessary varies by the age and size of a community, in general, buyers should be concerned if funding is below 40 percent, as it could result in a special assessment in the future.

Source: CAR.org Market Matters News

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

For mortgages, 620 is the new magic number

2009-10-28T11:31:00.000-07:00

Near historic low mortgage rates, favorable home prices, and the federal tax credit for first-time home buyers have contributed to home purchases in the past year. However, the onset of the credit crisis, new regulations for home appraisals, and more stringent guidelines for purchases and refinances have resulted in confusion for some potential home buyers.

While using a mortgage broker to find the best loan may work for some buyers, it may not always be the best route. In the past, mortgage brokers could “shop” a loan to multiple lenders to help find the best deal. However, new practices and procedures under the Home Valuation Code of Conduct (HVCC) have hampered mortgage brokers’ abilities, namely that lenders may no longer accept home appraisals commissioned by brokers. As a result, consumers may have to pay for new appraisals with each lender, which costs time and money. However, consumers who are very busy or need guidance may find that working with a mortgage broker is the easiest solution.

Qualifying for a mortgage under current lender standards is more difficult nowadays than in years past. Beginning Nov. 1 or Dec. 12, depending on the type of loan, Fannie Mae is tightening its lending standards to the 620 credit score benchmark—including loans backed by the Federal Housing Administration and Veterans Affairs. Borrowers with credit scores of less than 620 will find it very difficult to qualify for a mortgage. However, to qualify for the best rates, consumers generally need credit scores of 720 and must have verifiable, steady income.

As for loan type, most real estate professionals agree that a fixed-rate mortgage is the best choice for buyers and refinancers

Source: CAR.org, Market Matters News

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

2010 California Real Estate Market Forecast

2009-10-21T10:40:00.000-07:00

I have included the link for the 2010 Forecast. While this presentation is geared towards educating Realtors, This PowerPoint presentation contains some very fascinating information on our economy and California's position it the market. Check out the link below!

October 7, 2009

Leslie Appleton-Young

C.A.R. Vice President and Chief Economist

California REALTOR® EXPO

http://www.car.org/media/pdf/econpdf/10-07-09Forecastexpo-FINAL.pdf

“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

As the expiration date for this successful program looms, it is imperative that all REALTORS® take action by contacting their congressional representative today, and urge them to extend this vital home-buying incentive. It’s easy to do. Call (800) 961-3302, enter your NRDS ID, and you’ll be directly connected to the office of your congressional representative. Ask your congressional representative to vote for extending the First-time Home Buyer Tax Credit through 2010 and to include all home buyers -- not just first-timers. Historically, housing has led the nation out of economic downturns, and can do so again. Clearly, the tax credit played a critical role in driving home sales this year and in making the dream of homeownership a reality for many. By contacting our congressional representatives, we can make a difference in Washington, and help ensure the successful passage of this critical legislation.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

My Office Has Moved!!!

2009-10-19T15:20:00.001-07:00

Just a quick not to tell you about our new address. We have moved from Santee to the Clairemont/Kearney Mesa area! Please take note of our new address: 7061 Clairemont Mesa Blvd. Suite 218 San Diego Ca 92111. Thanks again for all of your referrals and support!!

Problems For Homebuyers to Watch For

2009-10-12T12:05:00.000-07:00

“What defects and problems should I watch out for when I buy a home?”

Here’s a list of common things to look for in a home that a home inspector once told me to watch out for:

1. Aluminum Branch Wiring (single strand) - used 1965 to 1978 (esp. In Mobile/Manufactured Homes)

2. Polybutylene Water Lines - 1982 to 1995

3. Consolidated Furnaces (horizontal furnaces mostly in attics; they go by a variety of names in addition to Consolidated) - 1983 to 1994

Ideally the home has:

1. Three-wire electrical outlets - Required Throughout - Required 1964+

2. Garage door openers - Mandatory Pressure Reverse - 1982+

3. Garage door openers- Light Beam Reverse - 1993+

4. Anchor bolts - 1933+ (state law); early 1950’s+ (Uniform Building Code)

5. Chimney liners - approx. 1936. Not required if chimney walls 8" thick.

6. Anti-tip brackets for freestanding ranges - June 1991+

7. Smoke alarms in bedrooms - 1991+ Uniform Building Code

Be aware that the seller is NOT required to replace or install any of these items. Many are still very common, such as having 2-prong instead of 3-prong outlets in homes built before 1964.

FREE HOME BUYER WORKSHOP

2009-10-09T08:12:00.000-07:00

I am Cordially inviting you to attend a FREE HOME BUYER WORKSHOP!

Two Dates Scheduled…

Thursday, October 15, 2009

6:00 p.m. – 8:30 p.m. 6:00 p.m. – 8:30 p.m.

City Heights Recreation Center Otay Mesa -Nestor Library

Wednesday, October 21, 2009

4380 Landis St. 3003 Coronado Ave.

San Diego, CA 92105 San Diego, CA 92154

REGISTRATION IS REQUIRED – SEATING IS LIMITED

Please RSVP to barbarainc@gmail.com or call (619) 850 -4174

This workshop will:

• Educate future homebuyers on qualifying for a home loan,

• Provide analysis on the current market

• Discuss the importance of finding a REALTOR®

• Provide information about the various assistance programs available to San Diego, including the $8,000 tax credit.

This free home workshop is a community service program provided by the San Diego Association of REALTORS®, in collaboration with Council President Ben Hueso and Councilmember Todd Gloria.

Pursue the American Dream of Homeownership…

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com
Barbarainc@gmail.com

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

A Historic Time to Buy

2009-10-08T09:16:00.000-07:00

A Historic Time to Buy

Young people just starting to invest and buying their first homes are potentially the winners in this recession.

First-time homebuyers, most between the ages of 25 and 45, accounted for about 45 percent of home sales from January through July 2009, according to the National Association of REALTORS®

"This is a historic time," says George Jaramillo, a 35-year-old business analyst in Atlanta, who recently bought three homes, two of them foreclosures. "It's a great opportunity to make some great gains in the future."

A study by investment company T. Rowe Price points out that investing when prices are low can result in amazing gains. For instance, between 1970 and 1990, the annualized rate of return for the S&P 500 was 11.5 percent.

"We need to be shouting from the rooftops that this is not the time to get out of the market if you're young," says Christine Fahlund, a senior financial planner with T. Rowe Price. "This is the time to be in the market."

Source: REALTOR.org, The Associated Press, Chip Cutter (10/05/2009)

Work on Mission Gorge Road to Begins

2009-10-01T08:31:00.000-07:00

The work has been completed on N. Magnolia between Mast and El Nopal, and now it’s Mission Gorge’s turn for a face lift. Work will be starting this Sunday, September 27, and will continue until Thursday, October 15, between Fanita Drive and the Post Office. The same work will go on as was done on N. Magnolia, including patching, laying rubberized asphalt, and installation for traffic cameras. Because Mission Gorge is the main drag through Santee, construction will take place from 9:00 pm to 5:30 am from Sunday through Friday. One lane will be open for each direction during work.

Source: scoutingsantee.wordpress.com

Police Consider Baiting Houses

2009-09-23T07:39:00.000-07:00

Police in St. Louis are contemplating what they are calling “bait” houses – gussying up empty homes with steal-able stuff like flat-screen TVs and new computers in order to woo crooks to the scene.

The bait will all be wired, so when the thieves make off with it, the cops will be right behind. Hidden cameras will confirm that they got the bad guys.

The police say the program has other advantages as well. "I hope that for every person that we arrest out of a bait house, there's another 20 who don't decide to break into a house because they think it might be a bait house," police department spokesman Rick Eckhard says.

Source: REALTOR.org, The St. Louis Post-Dispatch (09/10/2009)

D.C. Dances Around Tax Credit Extension

2009-09-23T07:22:00.000-07:00

Washington is being forced to take a hard look at the expiring $8,000 first-time homebuyer tax credit.

Nearly a dozen bills have been proposed to extend the credit past the Nov. 30 deadline, but the top decision makers are just beginning to weigh in.

On Thursday, Senate Majority Leader Harry Reid endorsed a six-month extension. Treasury Secretary Timothy Geithner said Thursday that he hasn’t made a decision yet. And the White House economic team says it will make a recommendation to President Barack Obama by the end of Friday.

Extending the credit is a tough sell in some corners because so far the credit has cost an estimated $15 billion, twice what was projected last February.

Source: REALTOR.org, The Associated Press, Adrian Sainz (09/17/2009)

Home Buyer Tax Credit Countdown Begins

2009-09-10T19:45:00.000-07:00

Home Buyer Tax Credit Countdown Begins
The first-time home buyers tax credit ends Nov. 30. Is it possible to buy in the next two weeks and still close in time to collect it?

Some professionals say yes. “It still can be done in six weeks," says RE/MAX Town & Country associate Lynn Ayers in West Chester, Pa.

Economist Kevin Gillen of Econsult predicts a mad rush to close as the deadline nears.

Bruce Hahn, president of the American Homeowners Grassroots Alliance in Arlington, Va., is pushing for an extension and an expansion of the credit.

Legislation to do that is critical, he says, because the recovery has so far been mostly jobless and people need more time to get their feet on the ground in order to buy.

Source: REALTOR.org Philadelphia Inquirer, Alan J. Heavens (08/31/2009)

**This article summary was corrected on Sept. 4, 2009. The original summary contained the wrong time period for the first-time home buyer tax credit deadline as well as mistakenly identified a quoted source. We regret this error. You can view the original article by the Philadelphia Inquirer online.

http://www.philly.com/philly/classifieds/real_estate/20090830_Time_Running_Out.html?text=lg&c=y

First-Time Buyer Tax Credit Extension Possible

2009-08-31T14:47:00.000-07:00

First-Time Buyer Tax Credit Extension Possible
Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, "It's something we can get done."

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)
Source:REALTOR.org

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com
Barbarainc@gmail.com

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

ZILLOW.com vs Your REALTOR

2009-08-28T10:06:00.000-07:00

I was helping one of my favorite clients this morning, when this topic came up. What is the difference between ZILLOW and other listing websites. Well here ya go...

Let me Take a moment to break it down for you as follows:

REALTOR.com - Probably the best site available to consumers to search property all over the Nation! This site is updated a few times per day with all of the MLS feeds from around the continental United States. It is the ONLY direct MLS feed site that I advise using. The downfall is that you cannot sort out thedifferent types of sales. Such as Short Sales, Foreclosure, or traditional sales. Bummer Dude!

http://www.zillow.com/homedetails/Honey-Car-STOP-THE-Santee-CA-92071/2140043925_zpid/

http://www.zillow.com/homedetails/Spacious-Santee-CA-92071/2140043919_zpid/

Buyers--> Foreclosure vs Short Sale

2009-08-25T14:53:00.000-07:00

I was councilling a client today and wanted to post a blog to review the differences between the two WHEN YOU ARE THE BUYER:

-Bank Owned Property-

*Often called REO or Foreclosure property

*The Lender owns the property (duh =) and they are required to transfer clear title (NO LIENS)

*Once the property has reverted back to the bank, the price is at it's lowest!

*Banks will not counter offer, They accept the highest and best offer submitted.

*Banks are easy to work with and usually respond to your offer within 24-72 hours. The longest response time I have seen was a week. (not the case when dealing with a short sale.)

*Banks can close in 30-45 days (not the case when dealing with a short sale.)

*Banks will usually give the buyer closing cost assistance and usually always perform all termite damage repairs.

-Short Sale-

*Also called a Pre-Foreclosure or Short Pay

*The Owner of the property is trying to sell the property for less than what the owner owe's the bank on the existing mortgage(s)

*If in fact a short sale does work out you can get a really good deal, (but if the same house foreclosed you will get the best deal)

*Although the seller of a short sale has accepted your offer, they have to submit it to the bank and you may have to wait 2-9 months for a response from the bank about whether or not they will accept a short sale on the property.

*Once escrow is opened you will need 45-90 days to close it. Short sales are never guaranteed to close (- So what happens if you have given your landlord your 30 day notice??)

*Short Sales have NO Closing costs credited to the buyer

*Short Sales have NO repairs done to satisfy Buyer regardless of what the Inspector says about the condition of the property.

*A common problem with short sales is the buyer losing out on money paying an inspector up to $450 to inspect a property that they will never own.

If you are searching for a home and would like a daily list of what is going on in your market excluding all the short sales, please send me an email at barbarainc@gmail.com

Stimulus Projects to Slow Down Traffic in Santee

2009-08-23T13:48:00.000-07:00

Federal stimulus money is making its way to Santee in the form of asphalt overlay projects along N. Magnolia Ave. and Mission Gorge Rd. Starting August 24, work will be going on along N. Magnolia Ave. between Mast Blvd. and El Nopal between 8:00 am and 5:00 pm. The work will include filling and patching cracks and potholes, putting in video detection cameras, and putting on a rubberized asphalt overlay. The project should be completed around September 4, but it will cause delays during that time – but access will continue during the work.

From about September 14 to October 9 similar work will go on along Mission Gorge Rd. from Fanita Dr. to the Post Office. Most of this work will be done during the night to avoid major traffic delays. If and when I get more specific details I will post them.

(Source: Scouting Santee Blog 8/20)

Buyers Rush to Beat Tax Credit Deadline

2009-08-23T13:11:00.001-07:00

Real estate professionals report that first-time home buyers are flooding the sale market, pressed to finalize a deal before the federal government's $8,000 tax credit offer expires on Nov. 30.

Because mortgage approvals, residential inspections, and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September.

The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.

Source: REALTOR.org & Chicago Tribune, Kathleen Lynn (08/14/09)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com
Barbarainc@gmail.com

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

JUST SOLD - LOS COCHES RD.

2009-08-19T08:13:00.001-07:00

Sonic vs In-N-Out – The Results Are In

2009-08-03T22:29:00.000-07:00

--> CLICK HERE TO READ THE FULL STORY... http://tiny.cc/BURGERS503

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com
Barbarainc@gmail.com

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

$280,000 LAKESIDE 4/3 +FIREPLACE, SM YARD

2009-08-03T21:17:00.001-07:00

$280,000 LAKESIDE 4/3 +FIREPLACE, SM YARD

CALL TO SEE TODAY

Foreclosure vs. Short Sale

2009-07-30T10:44:00.001-07:00

No equity? Struggling to make payments?

What’s better a short sale or foreclosure???

Here’s my objective opinion of the pro’s and con’s of a Short Sale vs. Foreclosure.

Your first step is to contact your lender and ask to talk with someone about a loan modification. In some cases, banks will actually modify (decrease) mortgage loan interest rates and payments to allow people to stay in their homes. I suggest you try it on your own at first… However, I’ve heard some people have gotten good results paying a consultant $500 to $3,000 for assistance. I would hire an attorney! If this route isn't working your next option is Short sale or Foreclosure.

Short Sale:
- Arguably a little better for your credit than a foreclosure. To be approved for a short sale, you typically need to be several months behind on your payments, which will hurt your credit.
- Better emotionally than losing your home to foreclosure
- Involves the hassle of having your home on the market and waiting a very long time to find out if the bank will approve your short sale. Many are not approved.

Foreclosure:

- Allows you to stay in the home longer (payment free)
- After the foreclosure, you’d likely receive “cash for keys” of a $1,000 to $3,000 to help you move

Experts Say Now is the Time to Buy

2009-07-22T22:28:00.001-07:00

Experts Say Now is the Time to Buy
Many investment experts advise it's time to buy. With prices falling, it is a once-in-a-generation chance to load up on property, they say.

How much of an investment portfolio should be devoted to real estate? David Swensen, who manages Yale University's endowment, says 20 percent is a smart number.

One possibility is real estate investment trusts (REITs), which, despite the fact that they are slashing dividends to conserve cash, are still paying average yields of 7.3 percent. That’s double the yield on Treasurys.

Should a home be part of the equation? Michael Kirby, founder of Green Street Advisors, says no.

"You should own a house to provide shelter," says Kirby. "In a way, it's not an investment, and it's not part of your investment portfolio. It's really just a living expense. By owning a house you are prepaying rent."

Source: Forbes (08/03/2009)

FHA Loans Set Record

2009-07-22T22:23:00.002-07:00

FHA Loans Set Record
The Federal Housing Administration guaranteed 186,000 mortgages in June, a record number in its 75-year history.

FHA loans are popular because they are one of the few sources of low-down-payment mortgages. In the last year, they have accounted for about 46 percent of all mortgage applications.

Along with increasing numbers of FHA activity comes a rising number of delinquent loans, with the level of FHA mortgages in some stage of foreclosure reaching 7.4 percent in May.

Source: The Wall Street Journal, Nick Timiraos (07/20/2009),Source:REALTOR.org

First-Time Buyers: Hurry for $8,000 Tax Credit

2009-07-22T22:22:00.001-07:00

First-Time Buyers: Hurry for $8,000 Tax Credit
It’s time to remind first-time home buyers that in order to qualify for the government’s $8,000 gift in the form of a tax credit, the deal must close by Dec. 1.

Buyers should have a purchase contract signed by early October, so they have 45 to 60 days to arrange financing and safely close the deal.

"There's not as much sand in the hourglass as we may think," said Jim Merrion, regional director at RE/MAX Northern Illinois.

Source: REALTOR.com, Chicago Tribune, Mary Ellen Podmolik (07/11/2009)

Downpayment, Closing Costs Biggest Obstacles

2009-07-22T22:20:00.001-07:00

Downpayment, Closing Costs Biggest Obstacles
Most Americans still consider having enough money for downpayment and closing costs to be the biggest obstacles to buying a home, according to the 2009 National Housing Pulse Survey, an annual survey released Thursday by the NATIONAL ASSOCIATION OF REALTORS®.

The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in seven years of sampling. Two-thirds of Americans think job layoffs and unemployment are a big problem; eight in 10 cite these issues as a barrier to homeownership.

“Homeownership is an investment in your future; however, saving for a downpayment and closing costs is still too great of an obstacle for 82 percent of house hunters looking to take advantage of the current market,” says NAR President Charles McMillan. “Monetizing the $8,000 first-time buyer tax credit for downpayment or closing costs on FHA-insured mortgages is a positive first step. Our hope is that the tax credit will be extended and expanded to all home buyers and will help bring stability to the housing market and enable more Americans to achieve the dream of homeownership."

Survey: Consumers Still Believe in Homeownership

Despite the challenges with the economy and housing market, 83 percent of Americans still believe buying a home is a good financial decision.

Three-fourths of those surveyed also believe now is a good time to buy a home, a number that has increased steadily the past two years. In fact, one-third of renters are thinking more about buying home than they were a year ago.

While Americans are seeing more stability in the real estate market, uncertainty persists. The number of those who feel buying and selling activity has stabilized or stayed nearly the same has grown significantly, from 18 percent last year to 26 percent this year. However the majority (58 percent) report that activity in their market has slowed.

Regarding home sales, nearly eight in 10 say it’s harder to sell a home in their area today than it was a year ago, despite the fact that nearly three-fourths of respondents say home prices are less expensive. Large home inventories could be to blame; 44 percent cite concerns about the high number of homes and condos for sale in their area.

While nearly three-fourths of Americans are concerned about the local drop in home values, respondents expect to see more stability in the near future. Nearly seven in 10 expect local home prices to remain about the same in the next three months; only 18 percent expect prices to further decrease. The drop in prices has improved affordability, and consequently, concerns about the lack of affordable housing are the lowest they’ve been in seven years of polling – 34 percent say it’s one of their biggest worries, down from 41 percent two years ago.

Foreclosures Among Top Concerns

Foreclosures remain a real concern among survey respondents. Slightly more than half (51 percent) say foreclosures are a big to moderate problem in their area. However, the rate of foreclosures is generally seen as stabilizing; 41 percent say the rate of foreclosures in their area is about the same as last year.

Ninety-two percent of respondents said neither they nor members of their immediate family have experienced a foreclosure in the past year, yet it is still a personal concern for many. One in five respondents said they are very or fairly worried that they will have difficulty making their mortgage payments over the next year. Thirty-two percent say it’s a big or moderate worry that they, or a member of their family, may have their home repossessed or foreclosed because they are unable to pay rising monthly mortgage payments.

In 2008, more than half of respondents (54 percent) were open to the federal government taking a more active role in overseeing mortgage and lending practices – the number dropped this year to 47 percent. This could be because 42 percent of Americans believe the country is back on the right track, more than double the number last year (16 percent).

Obtaining Financing Another Obstacle

Regarding financing, seven in 10 Americans cite a lack of confidence in their ability to be approved for a home loan as an obstacle to homeownership. The same number also say that banks are making it too hard to qualify for a loan (71 percent) and that fewer mortgage options offered by banks have made it harder for them to buy a home (71 percent). The perception of qualifying for a loan as a huge obstacle is especially high among minorities.

“Home buyers need protection from risky lending products but also need access to mortgages at a reasonable cost. While there has been some easing of credit in the mortgage market, the availability of credit continues to be an issue for many qualified home buyers,” says McMillan.

The 2009 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program. The telephone survey was among 1,250 adults living in the 25 most populous metropolitan statistical areas.

Source: NAR

Real Estate Improves in California

2009-07-01T07:59:00.001-07:00

Median prices for single-family homes in California have risen for the third straight month, reaching $267,570, up 4 percent from April, according to a report from the California Association of REALTORS®.

The inventory of homes continues to drop, falling a 4.2-month supply in May, compared to 8.7 month supply in May 2008.

California’s real estate market always has been seen as a leading indicator for the rest of the country. What is happening in California bodes well for the rest of the nation, observers say.

Source: The Wall Street Journal, Stu Woo (06/26/2009)

REALTOR® Magazine-Daily News-Real Estate Improves in California

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Best Places for Aging Entrepreneurs

2009-07-01T07:54:00.001-07:00

Entrepreneurs don’t retire, they just find a new project.

Over the past decade, baby boomers produced a high rate of entrepreneurial activity, and Dan Stangler, senior analyst at the Kauffman Foundation, says the number of baby boomers starting a business in their traditional retirement years is likely to increase.

In response to that analysis, U.S. News & World Report identified 10 places that it says are the best places for an entrepreneurial baby boomer to retire. It picked the areas because they have an affordable cost of living, proximity to healthcare, fun recreational amenities, and access to information, particularly colleges and university with technology-focused departments.

Here are their 10 best suggestions:

Arlington, Va.
Columbia, Md.
Fargo, N.D.
Fayetteville, Ark.
Fort Collins, Colo.
Knoxville, Tenn.
Lincoln, Neb.
Madison, Wis.
Round Rock, Tex.
West Des Moines, Iowa

Source: U.S. News & World Report, Emily Brandon (06/29/2009)

REALTOR® Magazine-Daily News-Best Places for Aging Entrepreneurs

Shared via AddThis

California Association Offers Mortgage Protection

2009-06-24T10:16:00.001-07:00

California Association Offers Mortgage Protection

To make home buyers less skittish about purchasing a home amid concerns about job security, the California Association of REALTORSÂ® has created a Housing Affordability Fund to provide mortgage protection.

The fund will pay buyers' mortgages for six months, up to $1,500 per month, if they become unemployed.

Eligible buyers are salaried employees who have not owned a home during the last three years, are buying properties in California between April 2 and the end of the year, and are working with a real estate pro on their transaction.

Funded by donations from REALTORSÂ® and REALTORÂ® associations statewide, the program also offers $750 per month for six months to eligible co-buyers, along with a $10,000 death benefit and accidental disability coverage.

Source: American Banker, Kate Berry (04/06/09)

REALTOR® Magazine-Daily News-California Association Offers Mortgage Protection

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Tread Carefully When Making a Low-Ball Offer

2009-06-24T10:11:00.001-07:00

Tread Carefully When Making a Low-Ball Offer
These days, itâ€™s easier to make a low-ball offer than it used to be, but still itâ€™s important to be smart. Here are some things that a real estate practitioner and would-be buyer should consider when contemplating such an offer:

— Use foreclosures as comps carefully. Look realistically at the prices foreclosures in the neighborhood brought. Foreclosures arenâ€™t good comps if the homes were stripped of appliances, pipes, HVAC, etc.
— Examine details of short sales critically. How many liens were there against low-selling short sales? If there were no secondary liens, the lender had considerable flexibility.
— Establish realistic time frames. Even in the best of circumstances, foreclosure takes a long time. Will the seller play the waiting game? How long have houses whose owners have equity stayed on the market? Is the buyer in a hurry?

If your buyer makes a low-ball offer, the bank probably wonâ€™t be in any rush to take it. Theyâ€™ll likely just keep soliciting offers without coming back with a counter. Ultimately, the property is likely to sell for a higher price and, chances are, you and your buyer wonâ€™t know it until the deal is done.

Source: ThinkGlinck, Ilyce R. Glink (03/30/2009)

REALTOR® Magazine-Daily News-Tread Carefully When Making a Low-Ball Offer

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"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com

Barbarainc@gmail.com

Coldwell Banker Nautilus

9535 Mission Gorge Rd #E

Santee, Ca 92071

Lic. #01742839

Property Tax Info Is a Few Clicks Away

2009-06-24T09:56:00.001-07:00

The Lincoln Institute of Land Policy has put its property tax database online. The database is a comprehensive source of information about finance in every state and many municipalities.

Users can manipulate the database to compare property tax laws, rates, and assessment rules, and to identify property tax relief programs.

The institute, which is associated with The George Washington University in Washington, D.C., plans to shortly add a database of property values across the United States.

Source: Lincoln Institute of Land Policy (06/08/2009)

REALTOR® Magazine-Daily News-Property Tax Info Is a Few Clicks Away

Shared via AddThis

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com

Barbarainc@gmail.com

Coldwell Banker Nautilus

9535 Mission Gorge Rd #E

Santee, Ca 92071

Lic. #01742839

With Economy Improving, Rates Become Focus

2009-06-22T09:50:00.001-07:00

REALTOR® Magazine-Daily News-With Economy Improving, Rates Become Focus

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“Foreclosure Moratorium” explained

2009-06-18T15:20:00.000-07:00

Recent news headlines have caused confusion by mischaracterizing the new California Foreclosure Prevention Act as a “90-day moratorium” and incorrectly stating that the lender must modify delinquent loans before it begins foreclosure. In reality, the foreclosure process for certain owner-occupied residential first trust deeds has been extended by 90 days, effective June 15, but an exemption is available for lenders with comprehensive loan modification programs as defined by the Act.

Under pre-existing law, a lender must wait three months after filing a notice of default before it can file a notice of sale. The new California Foreclosure Prevention Act extending that time frame by another 90 days may not have much practical impact. For more information call 619-850-4174 to learn more about the Housing Stimulus Laws of 2009.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com
Barbarainc@gmail.com

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

Green Tip: What's your Water Footprint

2009-06-11T10:47:00.002-07:00

Green Tip of the Week: What’s your water footprint?
To learn how water-intensive your lifestyle is and how to lessen your
“water footprint,” visit Waterfootprint.org

"Making Real Estate Simple!"

Barbara Ann Paul Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com
Barbarainc@gmail.com

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

Industry Lobbies to Extend Buyer Tax Credit

2009-06-10T18:31:00.001-07:00

Industry Lobbies to Extend Buyer Tax Credit
Key organizations in the housing industry are urging Congress to increase the $8,000 home buyer credit to $15,000 and make it available to all home buyers instead of just those buying a first home.

"What is being billed as a recovery is not showing up in the cash register yet," says Richard A. Smith, CEO of Realogy Corp. and a member of the Business Roundtable, which is orchestrating the lobbying effort.

The Roundtable’s campaign is also pushing Congress to make permanent expanded limits for loans eligible for government purchase or backing. The limit is now $729,750 in high-cost housing markets.

Source: The Wall Street Journal, Nick Timiraos (06/10/2009)

April sales and price report

2009-06-02T08:31:00.001-07:00

For release:
Thursday, May 28, 2009

C.A.R. reports April home sales increased 49.2 percent, median home price declined 36.5 percent

Price Stabilization Is First Step to Recovery

2009-05-14T08:38:00.000-07:00

Price Stabilization Is First Step to Recovery
Home prices must stabilize before the broader economy can turn around, a panel of housing and economic experts said yesterday at a real estate summit hosted by the NATIONAL ASSOCIATION OF REALTORS® as part of its Midyear Legislative Meetings in Washington, D.C., this week.

Although there are encouraging signs in the housing market—including a pick-up of home sales in previously hard-hit markets, record affordability, and continuing low interest rates—prices have not yet hit bottom.

That’s keeping many households on the fence and making it hard for those who do jump in to get financing in the conventional market. What’s more, it’s making it harder for troubled homeowners to refinance, leading to more distressed sales, and thus further erosion in prices.

Tax Credit Bridge Loans on the Way

To put a floor under the market, the federal government must continue to intervene, panelists said, and expanding the first-time homebuyer tax credit is a good place to start. The credit should be expanded to all households, including those with higher incomes, increased significantly in value, perhaps to $15,000 to $16,000 instead of the current $8,000.

“Then it would start move real estate,” said Robert Sibcy, president of Sibcy Cline, REALTORS®, based in Ohio.

In a positive move, the U.S. Department of Housing and Urban Development is set to roll out guidelines permitting HUD-approved lenders, public housing finance agencies, and some nonprofit organizations to make bridge loans to home buyers. The loans would be collateralized by the $8,000 tax credit, giving buyers the upfront funds for a down payment.

The inability to use the credit for the down payment has been a major stumbling block for the tax credit. NAR has been calling for HUD to use its authority to allow the bridge loans.

During the summit, HUD Secretary Shaun Donovan announced that HUD has decided to allow bridge loans, sparking a loud cheer of appreciation from more than 1,000 REALTORS® attending the session.

“We want FHA consumers to access the credit to use as a down payment,” Donovan said. “I want to thank NAR for its partnership with FHA.” More details on the guidelines will be released in a few days, he said.

Donovan said the credit is expected to stimulate 100,000 first-time homebuyer purchases and 60,000 move-up purchases this year before it expires Dec. 1.

Further Government Actions Could Help

The credit alone isn’t enough to spur sales, many panelists said. Barry Bluestone, a professor of political economy at Northwestern University, called for the federal government to step in for a defined period of time, such as 18 months, to insure buyers’ home equity.

Providing protection against price drops would remove buyers’ reluctance to get into the market now, and since the program would be of limited duration, it could lead to a critical mass of households buying in the short-term and thereby shore up prices. Bluestone said he envisions the federal government insuring up to 85 percent of an owner’s home equity.

“This could stabilize prices over the next 18 months and cost the government practically nothing,” he said. “A small, temporary program can have a huge impact. It’s an idea whose time has come.”

Foreclosure Actions

The other way to stabilize prices is to finally get a handle on foreclosures, which exert heavy downward pressure on prices. Donovan said the administration is making gains in this effort with the voluntary cooperation of 14 of the country’s largest mortgage servicers, representing 75 percent of the market.

But several panelists said the voluntary effort hasn’t proven to be effective yet, and that a new wave of foreclosures is expected this summer.

“If modifications don’t work, we need to stop waiting for voluntary compliance,” said John Taylor, CEO of the National Community Reinvestment Coalition. “The government should buy [the loans] at fair market value, take them out of the market, modify them, and end the foreclosure crisis.”

The big worry about federal intervention among several panelists is the apparent lack of an exit strategy. It tends to be far easier for the government to get involved in the market, through interventions like the giant federal bank rescue plan, than it is to get back out.

“Right now the Federal Reserve is the mortgage-backed securities market,” said Jay Brinkmann, chief economist for the Mortgage Bankers Association. “I don’t know the exit strategy and how long this can continue. It’s scaring off other investors. If the Fed stops buying, [what happens?] How do we get out of it?”

Don't Skimp on Mortgage Modifications

Martin Feldstein, the noted deficit hawk who chaired the Council of Economic Advisors for President Ronald Reagan, said mortgage modifications are one area where the administration shouldn’t skimp, even at the cost of growing the federal deficit, so he was disappointed that the administration is balking at the cost of that.

Referring to comments made by HUD Secretary Donovan, he said, “I’m disappointed the HUD secretary said it’s too expensive for the government to deal with negative equity mortgages…. We still have not dealt with the overhang of underwater mortgages.”

Even without further federal intervention the housing market will turn around, the panelists agreed.

The unknowns are how long recovery will take, how much damage will be done to the economy, and how strong the recovery will be.

The Shape of Things to Come

When the recovery does take hold, the housing market will be very different from what it was before, panelists said. The boom years of 2002–2007 were fueled not by income growth but by debt. After what’s been learned from that debacle, any future growth will have to be based on income growth, said Sarah Rosen Wartell, executive vice president of the Center for American Progress. Such growth will likely be far more moderate, but also more sustainable.

Wartell said the Obama administration was right to focus both on short-term stimulus and investment in clean energy, education, and healthcare reform, because those are the kinds of investments that can lead to the long-term income growth.

—Robert Freedman, REALTOR® Magazine

Tax Credit Can Be Used for Down Payment

2009-05-12T13:54:00.001-07:00

Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

(Source: NAR)

Green Tip of the Week: Write stuff

2009-05-11T08:54:00.000-07:00

Green Tip of the Week: Write stuff
Disposable plastic pens aren’t recyclable or biodegradable. The greener choice is refillable pens, marker, and pencils. When choosing a printer, opt for an inkjet printer, which uses 20 watts of electricity versus 300 watts for a laser printer.

Obama Administration Announces New Details on Making Home Affordable Program

2009-05-04T09:26:00.000-07:00

Obama Administration Announces New Details
on Making Home Affordable Program....

Parallel Second Lien Program to Help Homeowners Achieve Greater Affordability

Integration of Hope for Homeowners to Help Underwater Borrowers
Regain Equity in their Homes

You can view the Fact Sheet and Case Examples here.

WASHINGTON – The Obama Administration today announced details of new efforts to help bring relief to responsible homeowners under the Making Home Affordable Program, including an effort to achieve greater affordability for homeowners by lowering payments on their second mortgages as well as a set of measures to help underwater borrowers stay in their homes.

"With these latest program details, we're offering even more opportunities for borrowers to make their homes more affordable under the Administration's housing plan," said Treasury Secretary Tim Geithner. "Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system overall. Every step we take forward is done with that imperative in mind."

"Today's announcements will make it easier for borrowers to modify or refinance their loans under FHA's Hope for Homeowners program," said HUD Secretary Shaun Donovan. "We encourage Congress to enact the necessary legislative changes to make the Hope for Homeowners program an integral part of the Making Home Affordable Program."

The Second Lien Program announced today will work in tandem with first lien modifications offered under the Home Affordable Modification Program to deliver a comprehensive affordability solution for struggling borrowers. Second mortgages can create significant challenges in helping borrowers avoid foreclosure, even when a first lien is modified. Up to 50 percent of at-risk mortgages have second liens, and many properties in foreclosure have more than one lien. Under the Second Lien Program, when a Home Affordable Modification is initiated on a first lien, servicers participating in the Second Lien Program will automatically reduce payments on the associated second lien according to a pre-set protocol. Alternatively, servicers will have the option to extinguish the second lien in return for a lump sum payment under a pre-set formula determined by Treasury, allowing servicers to target principal extinguishment to the borrowers where extinguishment is most appropriate.

Separately, the Administration has also announced steps to incorporate the Federal Housing Administration's (FHA) Hope for Homeowners into Making Home Affordable. Hope for Homeowners requires the holder of the mortgage to accept a payoff below the current market value of the home, allowing the borrower to refinance into a new FHA-guaranteed loan. Refinancing into a new loan below the home's market value takes a borrower from a position of being underwater to having equity in their home. By increasing a homeowner's equity in the home, Hope for Homeowners can produce a better outcome for borrowers who qualify.

Under the changes announced today and, when evaluating borrowers for a Home Affordable Modification, servicers will be required to determine eligibility for a Hope for Homeowners refinancing. Where Hope for Homeowners proves to be viable, the servicer must offer this option to the borrower. To ensure proper alignment of incentives, servicers and lenders will receive pay-for-success payments for Hope for Homeowners refinancings similar to those offered for Home Affordable Modifications. These additional supports are designed to work in tandem and take effect with the improved and expanded program under consideration by Congress. The Administration supports legislation to strengthen Hope for Homeowners so that it can function effectively as an integral part of the Making Home Affordable Program.

Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18. The three part program includes aggressive measures to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac; a Home Affordable Refinance Program, which will provide new access to refinancing for up to 4 to 5 million homeowners; and a Home Affordable Modification Program, which will reduce monthly payments on existing first lien mortgages for up to 3 to 4 million at-risk homeowners. Two weeks later, the Administration published detailed guidelines for the Home Affordable Modification Program and authorized servicers to begin modifications under the plan immediately. Twelve servicers, including the five largest, have now signed contracts and begun modifications under the program. Between loans covered by these servicers and loans owned or securitized by Fannie Mae or Freddie Mac, more than75 percent of all loans in the country are now covered by the Making Home Affordable Program.

Continuing to bolster its outreach around the program, the Administration also announced today a new effort to engage directly with homeowners via MakingHomeAffordable.gov. Starting today, homeowners will have the ability to submit individual questions through the website to the Administration's housing team. Members of the Treasury and HUD staffs will periodically select commonly asked questions and post responses on MakingHomeAffordable.gov. To submit a question, homeowners can visitwww.MakingHomeAffordable.gov/feedback.html. Selected questions from homeowners across the country and responses from the Administration will be available at www.MakingHomeAffordable.gov/asked-and-answered.html.

source - us treasury

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Tread Carefully When Making a Low-Ball Offer

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Green Tip: What's your Water Footprint

Industry Lobbies to Extend Buyer Tax Credit

April sales and price report

Price Stabilization Is First Step to Recovery

Tax Credit Can Be Used for Down Payment

Green Tip of the Week: Write stuff

Government Announces Short Sales Guidelines