Existing-home sales fall 7.2% to 7-month low

Homes sales are on the decline. When will we get out of this slump. In an article written by Rex Nutting from Market Watch, we learn that the cheif economist of the real estate industry lobbing group, commented that ‘it’s not good news’. Where do we go from here? ~ Holly Leano

WASHINGTON (MarketWatch) – Resales of U.S. homes and condos fell 7.2% in January to a seasonally adjusted annual rate of 5.05 million, the lowest in seven months, the National Association of Realtors reported Friday. Sales of existing homes have fallen two consecutive months after rising steadily through the fall on the back of a federal subsidy for first-time home buyers. “It’s not good news,” said Lawrence Yun, chief economist for the real estate industry lobbying group. “There is rising concern about the strength of the housing recovery.” Inventories of unsold homes fell 0.5% to 3.265 million, or 7.8 months of supply at the current sales pace.

Pending home sales index plunges 16% – MarketWatch

WASHINGTON (MarketWatch) — Pending home sales plunged a seasonally adjusted 16% from October to November as a highly popular tax credit for first-time buyers was set to expire on Nov. 30, the National Association of Realtors reported Tuesday.

to read more – Pending home sales index plunges 16% – MarketWatch Posted using ShareThis

Holly Leano is #1 in Short Sales and REO

Short sales are on the rise as more homeowners struggle to decide between keeping their home and selling their home for less than what it is worth.

A seller opts for a short sale when they have established financial hardship. This means the seller is unable to keep up with the payments of the mortage even with a loan modification. As a result, they begin to fall behind on their payments.

In order for a short sale process to begin, the homeowner must be able to provide financial proof of hardship. All documentation must be submited to the mortgageor for review. Some of the documents include a hardship letter, 2 years of tax returns, financial worksheet, bank statements and paystubs.

While a short sale will affect the sellers credit, the impact is less than a foreclosure. The bank has to approve the short sale for a settlement that is less than what is owed. The benefit of selling a home through a short sale is the opportunity to obtain a new loan in a shorter period of time than with a traditional foreclosure.

If you are considering a short sale, I would like to invite you to call me for a free consultation. The process is very involved and requires a lot of time, patience and strong negotiation skills. Most importantly, the seller must be 100% committed to the process.

At Slavens Realty I pride myself on the quality of service I provide. My administration set up fee is a non-refundable $550. In the event the short sale is approved and you, the seller, do not agree to the terms offered by the bank, you do not have to accept the short sale and may opt to foreclose. If this happens, the only fee paid to me, the listing agent, is $550.

In the event you accept the banks offer and the house is sold by a short sale, commission to me and the buyer’s agent will be paid through the sale of the property.

While there are many Realtors who are willing to accept the short sale listing for free, I am confident that my fee of $550 will be the best money you spend for helping you resolve one of the biggest financial decisions in your life.

I am committed to service and to helping you find peace of mind through these difficult times.

Do call me, Holly Leano at 619-370-2417

Four-Year-Old Got Homebuyer Tax Credit, Treasury Says

You give people an inch they take a mile. This is ridiculous!! The $8K Home buyer tax credit was to help first time home buyers. Instead 74,000 UN-ETHICIAL AMERICAN’S have found another loophole to rape the U.S. Government of money. 8000 have been flagged with potential criminal fraud. We are barely getting out of a huge mortgage debaucle and now this!!!

The issue with ‘AS IS’ sales

Three years ago, when the home-sale market peaked, buyers frequently bought “as is” regarding deferred maintenance, like wood-destroying pest or “termite” work.

Home prices were rising in many areas, and buyers were flush with cash and could line up a mortgage even if they didn’t qualify. Today, prices are still declining with a few exceptions; many buyers are cash-strapped; and they need to put more cash down and go through a rigorous qualifying process to get a mortgage.

In the hot seller’s market of several years ago, many sellers invested money to make their homes look pretty in order to attract multiple buyers and drive the sale price up. But they usually didn’t spend much curing deferred maintenance, because buyers bidding in competition often bought “as is.” Sellers focused their fix-up-for-sale efforts on cosmetics — paint, staging, and replacing outdated light fixtures and flooring.

HOUSE HUNTING TIP: A home still needs to look good to sell in today’s market. However, a difference between this and the previous market is that a property that has a lot of deferred maintenance can be hard to sell unless the price is discounted significantly. And, even at a discounted price, it may be impossible to sell if there is a lot of inventory of similar homes on the market that don’t require as much work.

One issue from the buyers’ perspective is the hassle of getting the work done. A more restrictive concern is finding the cash to pay for the work.

The ideal way around this problem is to have defects that might impede the sale of your home corrected before you put your home on the market. This requires planning in advance and finding a way to pay for the work.

Sellers who don’t have cash readily available should look into using a home equity line of credit (HELOC). For instance, Charles Schwab offered a HELOC with an interest rate of 3.99 percent as of mid-May 2009. However, there must be sufficient equity in the property to qualify for a HELOC.

Marketing a listing with a clear “termite” report or a new roof can help sell your home. Buyers don’t have to worry about how they’ll pay for these necessary repairs because the work has already been done.

Sellers may object to paying to correct defects on a home they’re leaving. However, home maintenance is an integral part of homeownership. Sellers who keep their homes well maintained usually don’t have a large deferred-maintenance bill when they sell.

It’s wise to have presale wood-destroying pest and home inspections done months before you plan to sell. Ask the inspectors and your real estate agent to help you prioritize the work that needs to be done. Then, take the most cost-effective approach.

For example, if the roof is old, you could replace it. But, if it’s not leaking, and a roofer says the roof is serviceable, consider doing a roof maintenance that might include replacing cracked and missing shingles, sealing vent pipes and skylights, and replacing deteriorated gutters and downspouts.

If all the wood-pest work doesn’t need immediate attention, do the work that’s critical, like a deck that’s deteriorated to the point that it’s dangerous. At least the buyers won’t have to worry about how they’re going to find the cash to have the work done soon. They can save over time and budget for than less urgent items.

THE CLOSING: Another argument in favor of correcting glaring defects before you sell is that even if the buyers accept the property in its present condition, the appraiser might not. Then you’d have to try to get the work done before closing or lose the deal.

Written by Dian Hymer is a nationally syndicated real estate columnist and author.

Intrafamily refi forgoes costs, hassle … maybe none..

Can’t sell your house? Can’t modify your loan? Have you thought of asking a family member to help you out? Read this question from Craig -

DEAR BENNY: I am looking into refinancing my Texas home from a 5/1 adjustable-rate mortgage to a fixed-rate. During this process my mother stated that she would lend me the $150,000 to pay off my existing loan and I would pay her back at the current market rate for a 30-year fixed. This would provide her a stable investment, and I can forgo the closing costs, paperwork, appraisal, etc., associated with a refi.

What are the legal implications of this transaction? If I pay off my current loan do I assume title? What paperwork do I have to sign with my mom to validate the transaction and where do we file it? She would have to claim the income; can I still write off the interest as I would do with any other home loan? Is this transaction as simple as it sounds? –Craig

Read full article – http://www.clientdirect.net/news/default.asp?PUB=6694&AID=2596002

Obama Administration Announces Financial Incentives and Uniform Process for Short Sales

The NATIONAL ASSOCIATION OF REALTORS® (NAR) today announced that the Obama Administration has added new incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP), part of  the administration’s Making Home Affordable plan.

Loan servicers may consider short sales or deeds-in-lieu of foreclosure for borrowers who do not qualify to have their loans modified on a permanent basis under the Making Home Affordable Loan Modification Program.  

·      Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program, but don’t qualify for a modification or do not successfully complete the three-month trial period.  Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.

·      Incentives include:  $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).

·      The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter.  The goal is to minimize complexity and increase use of the short sale option.

·      Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements.  The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.

·      In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions.  Property must be listed with a licensed real estate professional with experience in the neighborhood.  No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement. 

·      The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.

·      Servicers may not charge fees to borrowers/homeowners for participating in the FAP.

·      The program is in effect through 2012.

·      Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).  

Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

C.A.R. launches mortgage protection plan for first-time home buyers

C.A.R. launches mortgage protection plan for first-time home buyers
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months.  Program benefits also include coverage for accidental disability and a $10,000 death benefit. 

C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.

To qualify for the Mortgage Protection Program, applicants must:

·          Be a first-time home buyer – someone who has not owned a home in three 

         or more years

·          Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009

·          Use a California REALTOR® in the transaction

         This is where I come in CALL HOLLY 619-370-2417<–

·          Purchase the property in California <– CALL HOLLY

·          Be a W-2 employee (cannot be self-employed)

To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

REALTOR and Sr Mortgage Consultant

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Foreclosure Timeline

When a real estate transaction involves a property in foreclosure, knowing the foreclosure timeline helps you as the real estate agent to assess whether you have enough time to close escrow before the foreclosure sale.  Starting September 8, 2008, California has a special foreclosure timeline for loans originated between 2003 and 2007, inclusive, which are secured by owner-occupied residences.  Indeed, loans involved in short sales are likely to be owner-occupied loans from the years 2003 to 2007, which was the heyday for subprime lending.  The special foreclosure timeline does not apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.  The special foreclosure timeline will remain in effect until January 1, 2013.  (Cal. Civ. Code § 2923.5.)

FORECLOSURE TIMELINE FOR OWNER-OCCUPIED REAL PROPERTY LOANS (made from 2003 to 2007)

The approximate minimum time frames for the non-judicial foreclosure of owner‑occupied real property loans made from 2003 to 2007 are as set forth below.  In California, most lenders elect to foreclose non-judicially by conducting trustees’ sales, not by judicial foreclosure. 

Pre-Foreclosure Period

A lender may initiate the foreclosure process when a borrower defaults on a loan, such as by missing a mortgage payment.  However, a slight delay may not justify acceleration and foreclosure by the lender.  Hence, in practice, lenders generally wait a few months after a missed payment before starting the foreclosure process.

Day 1: Lender Contacts Borrower

For owner-occupied loans from 2003 to 2007, a lender initiating the foreclosure process must generally contact the borrower by phone or in person to assess the borrower’s financial situation and explore options for avoiding foreclosure.  During the conversation, the lender must inform the borrower of the right to meet with the lender within 14 days.  The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency.

Day 31: Filing of Notice of Default

For owner-occupied loans from 2003 to 2007, the lender may file a notice of default 30 days after contacting the borrower to explore options for avoiding foreclosure.  The notice of default must be filed in the county where the property is located and a copy must be mailed within 10 business days after recordation to the borrower and all other persons who have requested such notice.  The notice of default informs the borrower of the default.  It must also include the lender’s declaration that it has contacted the borrower to explore options for avoiding foreclosure, tried with due diligence to contact the borrower, or the borrower has surrendered the property.

Day 121: Filing of Notice of Trustee’s Sale

Three months after the filing of the notice of default, the lender may record a notice of trustee’s sale setting forth the date, time, and place of the upcoming trustee’s sale.  Because of the gravity of a notice of trustee’s sale, it must be widely disseminated.  The notice of trustee’s sale must be recorded, posted, mailed to the borrower and others, as well as published once a week for three consecutive weeks in a newspaper of general circulation.

Day 145: Deadline to Cure Default

Up to five business days before the trustee’s sale, the borrower may reinstate the loan by curing the default or paying the missed payments plus allowable costs.  After the reinstatement period expires, the borrower still has the right to redeem the property by paying the entire debt, plus interest and costs (not just the arrearage), before the bidding begins at the trustee’s sale.

Day 152: Trustee’s Sale

Although California law allows a trustee’s sale to take place 20 days after the posting of the notice of trustee’s sale, lenders customarily wait at least 31 days instead to help protect against federal tax liens.  At the trustee’s sale, the property is sold through a public auction to the highest bidder.  Title is transferred to the successful bidder by trustee’s deed.

USING THIS FORECLOSURE TIMELINE

A foreclosure timeline helps you as a listing agent ascertain whether you have enough time to market and sell the property as a short sale.  Depending on the stage of foreclosure the homeowner is in (“Foreclosure Stage”), the chart below gives you the total time frame you have, at a minimum, to sell a property as a short sale before the trustee’s sale occurs (“Minimum Time Left to Sell”).

As an example, if a notice of default has just been filed, you have a minimum of about four months to sell the property before the trustee’s sale may occur.  That’s four months not only to find a buyer, but also to get the lender to approve the short sale and close escrow.  The short sale lender may agree to postpone the trustee’s sale in some situations (such as when there’s an accepted offer), but be sure to get any agreement for a postponement in writing.

FORECLOSURE TIMELINE FOR OTHER TYPES OF LOANS
For loans that are not secured by owner-occupied real property or not made from 2003 to 2007, lenders are not required to contact the borrowers to explore options for avoiding foreclosure.  For these loans, the total minimum time for the foreclosure process is roughly only 122 days, not 152 days.  If the lender is not required to contact the borrower, the foreclosure process takes a minimum of about 4 months from the filing of the notice of default to the day of the trustee’s sale.

Copyright© 2008, CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) Legal Department

REALTOR and Sr Mortgage Consultant

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Support the National Association of Realtor’s Four-Point Housing Stimulus Plan

Campaign Expiration Date:
November 30, 2008

Congress may soon consider a new economic stimulus bill. Housing has always lifted our economy out of past economic downturns so it is imperative that Congress focus on housing in the next stimulus package. This

We need ALL members to support NAR’s efforts to have the NAR Four-Point Housing Stimulus Plan included in any future stimulus bill.

Contact Congress today and ask them to include NAR’s Four-Points in the next stimulus package.

Make the $7500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit’s limited availability and repayment requirement severely limit the credit’s use and effectiveness.

*Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.

*Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.

*Permanently bar banks from engaging in real estate brokerage and management. The banks have proven they have enough to do to simply manage the loan process. Banks should not manage home sales and purchases.

Housing has always lifted our economy out of past economic downturns. It’s imperative now to foster a housing recovery, so that the economy can recover. Thank you for your hard work.

Written by Holly Leano – REALTOR and Sr Mortgage Consultant

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