INFO ON MORTGAGE WORKOUT PROGRAMS AVAILABLE

INFO ON MORTGAGE WORKOUT PROGRAMS AVAILABLE
C.A.R. has created consumer information sheets detailing the various mortgage modification programs available through the larger lenders and government entities. C.A.R. also has created an easy-to-use reference chart about available programs.

The consumer sheets contain information such as eligibility requirements, who to contact to apply, costs associated with the program, and other vital data. The sheets also are formatted in Microsoft® Word, enabling REALTORS® to print and e-mail this valuable information to their clients.

REALTORS® who wish to assist their clients in seeking loan modifications should ensure they are in compliance with California law. For further information, please visit the California DRE Web site at http://www.dre.ca.gov/mlb_adv_fees.html. REALTORS® also may direct clients to work with a U.S. Dept. of Housing and Urban Development (HUD)-approved counselor. For a list of HUD-approved counselors in California, visit the HUD Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA.

Source: CAR

Housing market may have turned a pivotal corner

With home prices in many areas declining to the point where owning a home is a more affordable option than renting, especially in the West, many potential home buyers appear to be getting off the fence and starting to purchase.  Add affordable prices to record-low interest rates and the demand for housing has reached a pivotal turning point.

New Guidelines Issued from Fannie Mae

Hi Everyone,

 

Attached are the new guidelines issued from Fannie Mae - The new policy allows for a borrower to have up to 10 financed properties,  however here are a couple of key points to pay attention to:

 

Loan-to-Value:

Purchases on 2nd homes and investment properties are limited to 75% LTV

Limited Cash-Out Refinances on 2nd homes and investment properties are limited to 70% LTV

2-4 Units are limited to 70% LTV

 

Credit:

Low FICO score cannot drop below 720

Bankruptcy and/or foreclosure must have 7 years seasoning

No mortgage lates over the last 12 months

 

Income:

Regardless of DU findings rental income must be verified with 2 years tax returns

 

Cash Reserves:

6 months reserves (PITI) on subject and all financed properties. In addition for investor purchases for borrowers who own 1-4 financed properties cash reserves have been increased from 2 to 6 months.

BUY A HOME FOR ONLY 3% DOWN!

Fannie Mae’s New HomePath REO Loan

Fannie Mae, the agency sponsored by the U.S. government to help make housing more affordable to all Americans, now offers HomePath, a special new home loan to finance the sale of its current real estate owned (REO) properties across the country. Prospect Mortgage is among a select group of mortgage lenders nationwide who can offer the HomePath loan to get you into one of these homes! Here are the key benefits of a HomePath Mortgage Loan:   • Only 3% down required on a primary residence property   • No mortgage insurance required   • No property appraisal required   • Only 10% down on 1-2 unit investment properties   • Get up to 6% in seller concessions on primary residence properties In addition to being one of the few lenders approved to offer the HomePath loan, we’re experts with REO transactions. I have been specially trained to handle the specific requirements of an REO transaction. I’ll keep the process smooth and stress-free. Search for Fannie Mae REO properties eligible for HomePath financing at: http://reosearch.fanniemae.com/reosearch/ Contact me today to learn more about the HomePath program!

INVESTORS.....

As of March 1^st Fannie Mae will allow  investors to have 10 financed properties.  Must put 25% down, 720 FICO and 6 months reserves for each property. 

The details are just coming in.  I will know more next week!

DEC. HOME SALES INCREASED 84.9 PERCENT; MEDIAN PRICE FELL 41.5 PERCENT

DEC. HOME SALES INCREASED 84.9 PERCENT; MEDIAN PRICE FELL 41.5 PERCENT 
Home sales increased 84.9 percent in December in California compared with the same period a year ago, while the median price of an existing home fell 41.5 percent, C.A.R. reported yesterday. "Sales continue to be strong, exceeding 500,000 units for the fourth consecutive month, and year-to-date sales are nearly 27 percent above last year," said C.A.R. President James Liptak. "California home buyers benefited during the last half of 2008 from the high-cost loan limit of $729,750, which fell to $625,500 as of Jan. 1. The restoration of the high cost loan limit to the previous level would not only help a housing market still struggling to turn around, but also make financing more affordable for home buyers."

Closed escrow sales of existing, single-family detached homes in California totaled 544,580 in December at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 84.9 percent from the revised 294,520 sales pace recorded in December 2007. Sales in December 2008 increased 5.9 percent compared with the previous month.

The median price of an existing, single-family detached home in California during December 2008 was $281,100, a 41.5 percent decrease from the revised $480,820 median for December 2007, C.A.R. reported. The December 2008 median price fell 2 percent compared with November's revised $286,850 median price.

Fixed-mortgage rates fall below 5%

Fixed-mortgage rates fall below 5%
The average interest rate on 30-year, fixed-rate mortgages for the week ending Jan. 9, decreased to 4.89 percent from 5.07 percent, according to the most-recent survey from the Mortgage Bankers Association.

Credit restrictions, negative or minimal amounts of home equity, and high levels of outstanding debt have resulted in the denial of nearly 70 percent of borrowers’ applications to refinance.

To read the full story, please click here:
http://www.chicagotribune.com/business/chi-biz-mortgage-rates-below-5-percent-jan15,0,7714045.story

Source: CAR.org 1/15/09

Scamming Again!

ATTENTION COLDWELL BANKER REAL ESTATE PROFESSIONALS: It has come to our attention that various Internet solicitations have appeared with increased frequency on such posting boards as Craigslist.com encouraging consumers to deposit escrow funds to secure an apartment via payment through Western Union payable to www.coldwellbanker.com.  Please  be advised that Coldwell Banker Real Estate LLC and coldwellbanker.com are not in any connected to this solicitation which is in fact fraudulent.  Craigslist, Western Union and law enforcement are being advised.  We encourage you to share this notice with your customers to minimize confusion and loss of funds. Thanks in advance for your cooperation. William J. Groble General Counsel Coldwell Banker Real Estate LLC (p) 973-407-7155 William.groble@realogy.com

Get ready to buy in 2009

Get ready to buy in 2009
2008 marked a year of rising home sales, falling home prices, a record number of foreclosures, the conservatorship of Fannie Mae and Freddie Mac, rising unemployment, and the official declaration of a recession that began in December 2007.  Unfortunately higher rates of unemployment mean more foreclosures, which could continue to drive down home prices, making 2009 a great time to purchase a home.

MAKING SENSE OF THE STORY FOR CONSUMERS

 

·       Consumers considering the purchase of a home should first get their credit and finances in order.  Reducing spending, limiting credit card balances to no more than 25 percent of the available balance, and monitoring credit reports are highly recommended by most financial experts.  Even borrowers with less than ideal credit scores and credit histories still may qualify for a home loan.  Some lenders will be more forgiving if the borrower has started meeting monthly debt obligations in the last six to 12 months.  Consumers can view their credit reports from Experian, Equifax and Transunion by visitingwww.annualcreditreport.com.  The free credit reports will provide a borrower’s credit history, but not the credit score.  The credit score can be purchased for approximately $10 from Equifax.

·      Good credit doesn’t mean simply paying bills on time; it also can mean job stability.  Most lenders require borrowers to have worked for the same employer for at least one year, possibly longer before they will approve the home loan application.  For self-employed individuals, most lenders will want at least two years of tax returns before approving a conventional loan.

·      It’s very important that borrowers know early on in the homebuying process how much house they can afford, and there are various ways to determine this. Borrowers can visit a local lender to get prequalified or preapproved for a loan; or go online.  Lenders will review the borrower’s income, debt, assets and liabilities to determine the maximum mortgage payment the borrower can afford.  Web sites, such as www.bankrate.com, also can help determine this. 

·      The services of a REALTOR® should be used in every real estate transaction. REALTORS® can provide an overview of current market conditions, coordinate home tours, and assist with making offers and counteroffers, as well as help with the myriad of details involved in every real estate transaction.

·      Reviewing the purchase contract and loan documents also is extremely important, especially if purchasing a property through a short sale or foreclosure.  If the property is owned by the bank, the home-buying process could take much longer than a traditional transaction.  It is recommended that borrowers ask their attorney, or broker to explain anything in the contract and/or loan documents that the borrower doesn’t understand.  

Source: CAR

Where Buyers Are Picking Up Housing Bargains

Where Buyers Are Picking Up Housing Bargains 
Smart investors in all parts of the country are picking up fabulous housing bargains.

Bill Leon, president of Florida’s Broward (County) Real Estate Investors Association, has been buying and selling investment property for years, but he thinks today’s deals are unprecedented. “People are afraid not to sell because they don’t know where the bottom of the market is,” he says.

David Dweck, a hard-money lender, believes the best buys are in what he calls “workforce housing,” aging bungalows on small lots. They are selling for as little as 10 cents on the dollar compared to what they were going for in 2006, he says, then fixed up and resold or rented quickly. 

"People have been beaten down by fear, negativity, constant media bombardment," says Dweck. "There is a silver lining. The future looks bright."

Sheresa Pompay, an associate with Hunt Real Estate ERA in Chandler, Ariz., says bad publicity is good for real estate investors. "I love the people who read about all the gloom and doom, because they stay on the sidelines and go, 'It hasn't hit bottom.' Whatever. By the time everyone jumps back in, we'll be out and doing something else."

Fortune magazine predicts that these will be the 10 worst-performing real-estate markets – and the best places for finding bargains – in 2009:

Los Angeles, down -24.9 percent
Stockton, Calif., -24.7 percent
Riverside, Calif. -23.3 percent
Miami-Miami Beach, -22.8 percent
Sacramento, -22.2 percent
Santa Ana-Anaheim, Calif., -22 percent
Fresno, Calif., -21.6 percent
San Diego, Calif., 21.1 percent
Bakersfield, Calif., -20.9 percent
Washington, D.C., -19.9 percent

10 Cities to Look at If You're Looking for Work

10 Cities to Look at If You're Looking for Work 
If you’re looking for a job, try Madison, Wis. It tops the list of places where jobs are plentiful, according to a survey by Ajilon Professional Staffing.

Ajilon researchers relied on statistics from the U.S. Bureau of Labor to identify places with a low unemployment rate and a high number of new jobs created in the last six months. Then it compiled information from its own professionals to find the cities with the best job opportunities.

Madison has a wide range of industries, plus it is the seat of state and county government. 

Here are the top-10 cities where employers are hiring:

Madison, Wis.
Washington, D.C.
Boston, Mass.
Richmond, Va.
Milwaukee, Wis.
Pittsburgh, Pa.
Baltimore, Md.
Seattle, Wash.
Houston, Texas
Dallas, Texas

Source: Forbes, Tara Weiss (01/05/2009)

GREEN TIP OF THE WEEK: USE BEFORE RECYCLING

GREEN TIP OF THE WEEK: USE BEFORE RECYCLING
Collect 8.5- by 11-inch paper that's been printed on one side by your printers and fax machines, designate a paper drawer on each printer, or as many printers as practical, for this paper, and use it to print drafts

FHASecure Shut Down at Year-End

Despite pleas from consumer advocates and trade groups, HUD will end its FHASecure program on Dec. 31, explaining that continuing the program, which insured refinancings for delinquent borrowers, would hurt the FHA financially. 

FHASecure is a refinancing option that gives home owners with non-FHA mortgages the ability to refinance into a FHA-insured mortgage. With FHASecure, the lender will not automatically disqualify home owners because they are delinquent on their loan, and the lender may offer a second mortgage to make up the difference between the value of their property and what you owe. 

The cost of keeping the initiative in place "would have to be offset by either substantial across-the-board single-family program premium increases or the suspension of FHA's single-family insurance programs altogether," according to Federal Housing Commissioner Brian Montgomery. 

In a joint letter to HUD, consumer advocacy groups, along with the Center for Responsible Lending, insisted that the FHASecure program is more helpful than the Hope for Homeowners program because the absence of legislation governing the effort enables it to "adequately adapt to market evolutions." 

The groups had hoped to win FHASecure an extension at least through 2009. 

Source: American Banker (12/30/08) Marc Hochstein

GREEN TIP OF THE WEEK: TELECONFERENCE ONLINE AND SAVE

GREEN TIP OF THE WEEK: TELECONFERENCE ONLINE AND SAVE
Log in and save money, drive time, and gasoline when a face-to-face meeting is not necessary. There are many ways to conference online, including using Skype, which offers free calls and free conferencing. If visuals are required, try GoToMeeting , a provider of online meeting and collaboration software.

10 Real Estate Predictions for 2009

10 Real Estate Predictions for 2009 
2009 is likely to be a year of continuing adjustment to a changing real estate marketplace. Prepare yourself and your business with these predictions from HGTV’s FrontDoor.com Web site. 

• Sellers will continue to face falling home values in the new year because they’ll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.

• The Obama administration will act on its plan to crack down on abusive lending practices.

• Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate's Joint Economic Committee has predicted two million foreclosures in 2009.

• Banks' restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.

• Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.

• The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages, and credit enabling better decision-making going forward.

• Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.

• Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.

• Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.

• The recession will end and buyers will regain confidence in the market.

Source: Frontdoor.com (12/03/08)

Emergency Economic Stabilization Act May Help Homeowners:

Emergency Economic Stabilization Act May Help Homeowners: Enacted on October 3, 2008, this historic federal legislation earmarks $700 billion for the Treasury Secretary to purchase troubled assets from financial institutions. The Secretary and other federal agencies are also charged with the task of mitigating foreclosures for mortgages and mortgage-back securities and encouraging loan modifications. Furthermore, this law strengthens the FHA-insured refinance loans for troubled mortgages under the HOPE for Homeowners program, including authority for the program's board of directors to increase the maximum loan amount above 90% of the appraised value. This bill also extends the tax exemption for debt forgiveness on home loans under the Mortgage Forgiveness Debt Relief Act of 2007 from December 31, 2009 to December 31, 2012. Source: H.R. 1424.

Debt Relief Income Exempt from State Income Tax:

Debt Relief Income Exempt from State Income Tax: Starting September 25, 2008, the federal income tax exemption for debt forgiven on a home loan now applies to state income taxes to a limited extent. Federal law provides a tax exemption for debt forgiveness on a loan incurred for acquiring, constructing, or substantially improving a principal residence up to $2 million if the debt is discharged from 2007 through 2012. Under the new California law, the maximum qualifying debt is only $800,000, not $2 million, and the maximum exclusion is $250,000. Moreover, the California law only applies to a debt discharged in 2007 or 2008. Senate Bill 1055.

GREEN TIP OF THE WEEK: CONFUSED ABOUT PLASTICS?

You're not alone. Experts have reached a consensus and recommend that you avoid these varieties -- identified by a triangle and number on the bottom of most containers -- for the following reasons:

#3 Polyvinyl Chloride (PVC) commonly contains di-2-ehtylhexyl phthalate (DEHP), an endocrine disruptor and probable human carcinogen, as a softener.

#6 Polystyrene (PS) may leach styrene, a possible endocrine disruptor and human carcinogen, into water and food.

#7 Polycarbonate contains the hormone disruptor bisphenol-A, which can leach out as bottles age, are heated, or exposed to acidic solutions. Unfortunately, #7 is used in most baby bottles and five-gallon water jugs and in many reusable sports bottles

GREEN TIP OF THE WEEK: TOILET DAMS

If water-saving or dual-flush toilets are not in your office or home improvement budget, then place one or two plastic containers filled with stones in your toilet's tank. This intermediary step will displace a significant amount of water use over the course of a year.

Barbara Wibe, e-PRO, REALTOR
"it's the little things that make a difference"

Cell: 619.850.4174
e-Fax: 619.512.5156

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

GREEN TIP OF THE WEEK: PLASTIC LININGS IN CANS

After years of public protest and mounting scientific evidence, the government of Canada made a precedent-setting announcement by banning a known toxic chemical from baby bottles. The chemical, bisphenol A (BPA), is commonly found in plastic baby bottles, hard plastic sippy cups, reusable water bottles, the lining of some food cans, and dental sealants. Bisphenol-A, is present in the majority of canned foods. The thin plastic lining found in canned goods contains traces of BPA that can migrate into food. One way to avoid BPA-lined cans is to purchase foods packaged in Tetra Paks, aseptic cartons made from layers of paper, aluminum, and polyethylene.