Archive for the 'Real Estate News' Category
To Sign or Not To Sign: Short sale agreement with lender when they reserve the right to pursue deficiency?
February 14th, 2011 Categories: Foreclosure News, Real Estate News, Sacramento Real Estate Trends, Short Sales
Deficiency Judgments on First Mortgages in California- Not any more?
Sacramento Certified Short Sale Specialist explains the brand new California anti-recourse Short Sale law:
Do you sign a short sale approval letter that reserves the right to pursue a deficiency.
As a Sacramento Short Sale Specialist and Certified Short Sale Expert I get questions all the time from other agents. Other short sale agents here in my office, other Sacramento area short sale agents, and even (sometimes most frequently) agents from other California Short Sale Markets who find my Sacramento Short Sale Center websites and contact me with their short sale questions.
One of the most frequently asked questions I hear is “I have successfully negotiated this short sale file but, what do I do; the short sale agreement letter from the lender contains language where the investor/servicer is reserving the right to pursue a deficiency judgment on the balance …do I have my clients sign it?”
First of all, I am a short sale Realtor. Although I have taken hundreds of hours of training and I’m Certified many times over, I know the ins-and-outs of successfully negotiating a short sale, but I am not an attorney and I make sure everyone I talk to knows that-
But I do know there are new California laws that stop banks from pursuing deficiency judgments on first mortgages. There have always been (since the 30′s) laws stopping deficiency on purchase money loans on homeowner occupied units, but there was danger for income properties and refinanced loans where there was money taken out… before 580e; as I understand, there was valid law giving the lenders power to file for a deficiency judgment for the amount the lender wrote off in a short sale.
Here’s what I know about California SB931 and California Civil Code Section 580e:
Read More on California Short Sale Anti Deficiency Law SB931.
Questions on your particular situation? Is your second mortgage non-recourse too? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
If you area homeowner faced with the decision of whether or not to sign the lender consent agreement in a Short Sale or lender short sale approval letter, be sure to get competent legal advice first from a real estate attorney. No matter what. even if you feel like you are getting great information from your lender, from the internet, from other sources- definitely spend the couple hundred dollars and talk to a real estate attorney!
You can also read the full law here: California SB931 and Civil Code 580e
New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?
Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
In closing, always obtain legal and tax advice before making a decision between a short sale or a foreclosure.
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Step Right Up! $18,000 In Tax Credits! First Time Buyers Can Double Dip!
March 31st, 2010 Categories: Real Estate News
Claim Your $18,000!
Federal And State Tax Credits Combine For $18,000 Bonanza
For A Limited Time Only! $18,000 Bonanza to California First Time Home Buyers
For two months, from May 1 to June 30, 2010, First Time Homebuyers in California will be able to qualify for both the federal and state income tax credits that add up to a whopping $18,000 in credits.
There is a very tight time frame in order to take advantage of both credits, to be able to get both tax credits, a first-time homebuyer has to be in contract ( in escrow) for a principal residence before May 1, 2010, and that contract must close between May 1, 2010 and June 30, 2010.
Here is ne real quick article I found from The Wall Sreet Journal that also explains the timelines.
Tuesday, we told you that the (financially troubled) state of California is poised to offer home buyers up to $10,000 to get off the fence and to the dotted line. The $200 million program, split between first-time buyers of existing homes and new units, should keep the Golden State’s sales moving along post spring-selling season.
But, it might not get off to a peaceful start on May 1: Get ready for a stampede early on as some buyers rush to overlap with the federal tax credit that’s dangling as much as $8,000 to buyers. (Yes, that’s up to $18,000 for buying a house.)
For the federal incentive, contracts must be inked by April 30, while closings have to happen by June 30. The California credit covers closings on existing or new homes on or after May 1, leaving a short window for double dipping. “We already anticipated increased contract activity in March and April due to the federal tax credit with scheduled closings in May and June,” writes Credit Suisse builder analyst Dan Oppenheim. “These buyers will now be eligible for both the federal and state credit and will likely consume a significant piece of the state credit given the first-come, first-serve allocation.”
He estimates the tax credit will benefit about 14,000 new-home buyers, lasting as long as five months. KB Home and Lennar could benefit the most given “their outsized exposure to California at 44% and 25% of ’09 revenues, respectively, vs. the 20% group average.”
Given that the state’s existing sales dwarf new sales – 2009 saw an average of 42,500 closings per month – that allotment should be snapped up in about a month. Stampede, indeed.
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New And Improved California First-Time Homebuyers Tax Credit Signed
March 25th, 2010 Categories: First Time Buyers, Real Estate News, Sacramento Home Buyers
California Homebuyer Tax Credit Will Add $10,000
Californa’s Newest First Time Homebuyers Tax Credit is for Resale Existing Homes and New Construction!
The CA first time homebuyers tax credit has been revamped, and will now allow a credit for first time home buyers looking for existing (resale) homes, as well as new construction. The passage of this bill is due in large part to CAR’s non-stop continual push in Sacramento over the last few weeks.
Homebuyers can claim 5 percent of the purchase price against their California taxes, up to $10,000.
“I have been up and down the state pushing this important housing bill that will get people off the fence and into homes while creating jobs and stimulating our economy,” CA Gov. Schwarzenegger said in a statement.
The new tax credit will provide $200 million in tax credits for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes, and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. Again, the credit is equal to the lesser of 5 percent of the purchase price or $10,000, and willl be applied to your taxes in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).
You may or may not remember the last CA tax credit ran out of money and was abandoned well before it was supposed to end, so once again, it is urged that anyone thinking of purchasing a home moves forward as quickly as possible if they want to be assured of securing their $10,000.
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Sacramento Real Estate and California Sales for February
March 19th, 2010 Categories: Real Estate News, Sacramento Real Estate Trends
Sacramento County has seen a huge increase in homes that went pending in February but actually saw a decrease in the number of closed escrows both month over month and year over year.
Sacramento County Real Estate Report 03 19 10
Dataquick Roperts California Market Stats:
An estimated 28,111 new and resale houses and condos were sold statewide last month. That was up 0.9 percent from 27,858 in January, and down 3.8 percent from 29,225 for February 2009. California sales for the month of February have varied from a low of 20,513 in 2008 to a peak of 48,409 in 2004, while the average is 32,325. MDA DataQuick’s statistics go back to 1988.
The median price paid for a home last month was $249,000, up 0.8 percent from $247,000 in January, and up 11.2 percent from $224,000 for February a year ago. The year-over-year increase was the fourth in a row, following 27 months of year-over-year declines. The median peaked at $484,000 in early 2007 and hit a low of $221,000 last April.
Of the existing homes sold last month, 44.3 percent were properties that had been foreclosed on during the past year. That was up from a revised 43.8 percent in January and down from 58.8 percent in February a year ago, the all-time high.
The typical mortgage payment that home buyers committed themselves to paying last month was $1,068. That was up from $1,064 in January, and up from $976 for February a year ago. Adjusted for inflation, last month’s mortgage payment was 50.2 percent below the spring 1989 peak of the prior real estate cycle. It was 59.6 percent below the current cycle’s peak in June 2006.
MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.
Indicators of market distress continue to move in different directions. Foreclosure activity has declined somewhat but remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying is up, MDA DataQuick reported.
Copyright MDA DataQuick Information Systems. All rights reserved.
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CAR says 67 Percent of California Sellers Sold Becouse of Mortgage Woes
March 3rd, 2010 Categories: Real Estate News
California Association Of Realtors
C.A.R. releases “2009-2010 Survey of California Home Sellers”
Report finds 67 percent of California sellers sold their homes due to inability to meet mortgage obligation
LOS ANGELES (Feb. 25) –Changes in family and employment status as well as adjustments to monthly mortgage obligations played significant roles in California’s homeowners’ decisions to sell their homes in 2009, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2009-2010 Survey of California Home Sellers.” According to the report, 67 percent of all sellers in California did so as a result of difficulties related to meeting their mortgage obligation.
“Tighter underwriting standards and a decline in equity continued to impact the market in 2009,” said C.A.R. President Steve Goddard. “Many homeowners chose to sell last year because their adjustable-rate mortgage reset at the same time home prices were experiencing an unprecedented decline, leaving them with little equity and difficulty in qualifying for a refinance.”
“Sellers responded to the challenges of the housing market in 2009 by choosing to work with REALTORS® for guidance and assistance in navigating the complex market,” added Goddard.
Recognizing the value of working with a real estate professional, 99 percent of sellers chose to work with a REALTOR®, according to the survey. Of those, 72 percent cited the ability of an agent to sell the home at a higher price point as the primary reason. Other reasons included better marketing and exposure (38 percent), while 28 percent reported it was too difficult to sell the home independently.
On average, homes sold for $20,958 less than the original asking price in 2009. The median difference between the selling and listing price was $32,315; the list-to-sold-price ratio was significantly larger between first-time sellers ($30,000 below list price) and sellers who had previously sold a home ($8,000 below list price).
The percentage of first-time sellers grew to nearly half of all sellers (44 percent) in 2009, a 33 percent increase from 2008, and nearly three times the 2007 percentage of 15 percent.
Sellers in 2009 cited difficulty meeting the monthly mortgage obligations (30 percent); job loss (18 percent); and “mortgage payment increased” (15 percent) as primary motivation to sell. By comparison, in 2008, one in five sellers cited the ability to meet their mortgage payment obligation; while 11 percent sold due to financial difficulties.
Financing challenges also extended to home buyers and impacted sellers’ confidence in buyers’ ability to secure a home loan. Nearly three-fourths of sellers reported this as a concern, an increase from 54 percent in 2008.
Financial difficulties also impacted the ability of sales to close on time, with 63 percent of homes falling out of escrow prior to closing. Nearly 70 percent of sellers cited “buyer could not get an acceptable mortgage;” and more than 60 percent said “buyer backed out,” as the primary reasons the home fell out of escrow. Other reasons included: Buyer’s remorse (26 percent); “lender withdrew and did not fund” (24 percent); and “home prices continued to decline” (18 percent). Once the home did sell, 50 percent of sellers reported escrow did not close on time in 2009, compared with 36 percent in 2008.
C.A.R.’s “2009-2010 Survey of California Home Sellers” is available for purchase for $49.95 in electronic format at http://www.rebsonline.com/product/1311/2009-Survey-of-California-Home-Sellers-%28PDF-Electronic-Download%29. The survey no longer is available in hard-copy format. Journalists who would like a complimentary copy of the report should e-mail markg@car.org or call (213) 739-8363.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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38% of Sacramento County Homes Underwater- 20% Nationally
February 10th, 2010 Categories: Foreclosure News, Real Estate News
Sacramento Certified Short Sale And Pre-Foreclosure Specialist Report
Underwater Homeowners in Sacramento County
According to Real estate website Zillow.com one More than one in three Sacramento County Homes are underwater, Zillow also says one of every five U.S. home owners owed more on their mortgage than their home was worth in the fourth quarter. Nationally, The number of American single-family homes with negative equity rose to 21.4% in the fourth quarter from 21% in the third quarter, according to the Zillow Real Estate Market Reports. U.S. home values declined again in the fourth quarter, as the Zillow Home Value Index fell 5% year-over-year and down 0.5% quarter-over-quarter, to $186,200. It was the 12th consecutive quarter of year-over-year declines, the reports showed. “The prevalence of markets in or near a double-dip situation shows that we are not yet at the bottom, in terms of home values,” Stan Humphries, Zillow chief economist, said in an interview.
One in five, or 29 of the 143 markets tracked by Zillow, had at least five consecutive month-over-month increases in home values during 2009 before values began to flatten or fall again in the second part of the year. These markets included the Boston, Atlanta and San Diego metropolitan areas. Zillow said it defines a “double dip” as two periods of sustained declines in home values that are separated by a brief period of stabilization or recovery. Foreclosure resales remained high, making up 20.3% of all U.S. home sales in December. Foreclosure resales also made up the majority of sales in several metropolitan areas, including Merced, California, at 68.3%; Las Vegas, at 64 percent, and Modesto, California, at 62%. Additionally, 28.5 percent of home sales nationwide sold for less than what the seller originally paid. Home values increased year-over-year in 27 of 143 markets and remained flat in 15.
Click here For Sacramento Foreclosure Advice
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Sacramento Short Sale And Foreclosure News
January 26th, 2010 Categories: National Real Estate Trends, Real Estate News
Titanium Holdings Launches Excellen REO
Loss Mitigation Solutions Provider Expands Presence in to REO Space
Titanium Holdings, Inc., the parent company of Titanium Solutions, Inc., a provider of loss mitigation solutions, recently announced the launch of a new business unit, Excellen REO. Excellen REO is a full service REO asset management company that offers a complete suite of services designed to create a customized property liquidation process for each client.
“As the mortgage industry faces various challenges during this economic downturn, the success we have experienced with Titanium Solutions for more than a decade has uniquely positioned us to understand and respond to the changing needs of our clients,” Patrick Carey, CEO of Titanium Holdings, explained. “We have made a number of strategic decisions during the past year and the launch of Excellen REO is the latest result of that effort. Excellen REO will help us expand the client relationships that we have built over the years and establish new partnerships as we offer a comprehensive solution to all of their property liquidation needs.”
Cary Sternberg, president of the new company, leads Excellen REO. With almost 40 years of experience in asset preservation, management and liquidation, Sternberg is the former senior vice president of the REO department for American Home Loan Servicing, Inc. In this position Sternberg managed more than 200 employees and 33,000 assets. His previous titles also include first vice president of home loan servicing and REO of Indymac Bank FSB, national REO manager of Ocwen Federal Bank FSB, president of Virginia Commonwealth Realty and senior vice president of American Family Homes.
“We have assembled a staff that leverages decades of experience in REO management and key business partners across the country,” Sternberg said. “Titanium Holdings has created a formidable reputation in the industry and I look forward to garnering that same level of trust for Excellen REO.”
Excellen REO services include pre-marketing, valuations, marketing and sales negotiation, closing and funding and alternative sales methods. The company will leverage a nationwide network of real estate brokers and local eviction attorneys, as well as property preservation companies.
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Sacramento Foreclosures At Trustee Sale Still Slow
January 9th, 2010 Categories: Pre Foreclosures, Real Estate News
How long can this go on?
I hear through the grapevine that over 90% of the Sacramento County Trustee sales are still being postponed at courthouse steps.
But it looks as if they haven’t scheduled that many?
The entire Government, Industry and powers that be are pushing hard to get homeowners to contact their banks/servicers and get a loan modification started, yet only 4% of the trial loan modifications become permanent.
This must have a lot to do with the fact that most loan modificatrions are only for 5 years, they fix the payment problem (reductions in payment have been about $500 Ave) for a while, but there is typically no reduction in principle. The payment terms are typically changed to a 40 or 45 year loan, with 2 or 3% interest for five years and then reverting to todays rate. So, why do that? I see many homeowners are instead just throwing in the towel even if they can now afford the payment.
Can’t blame them.
The negative equity problem must be addressed.
Statewide, according to Default Research Inc.
California, the country’s most populous state, saw Notice of Default and Notice of Trustee Sale recordings drop by an average of 16.8 percent in 2009, and Los Angeles County, the country’s largest county, saw foreclosures decrease by 16.5 percent. The hardest hit cities with foreclosures in the state were Los Angeles (20,256), Sacramento (13,495) and San Diego (10,745).
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HAMP LOAN MODIFICATION SUCCESS RATE
January 2nd, 2010 Categories: Pre Foreclosures, Real Estate News
Loan Modification Report for December–
How many homeowners have found a long term solution through HAMP? The numbers show catastrophic failure!
At worst 4.5% at best 13%…
I have been keeping track of the two most important numbers in the Obama Administrations HAMP Progress report that comes out every month… The number of Trial modifications folks have entered into the program, and the number of permanent modifications, or folks that have been through the three month program and then qualified for and approved their final modification offer from the bank-
According to the charts: through November: (November’s numbers included)
Number of Active Trial Modifications
697,026
Number of Permanent Modifications
31,382
So only 4.5% of these loan modification starts have actually gone on th become a long term fix for families–
Now I’m sure this percentage will increase– Almost half of the 697,000 homeowners were added in September and October, so their numbers might start showing up as permanent modifications in January and February, but what about the 250,000 that were added before September, does this really mean that at best case only 13% of people will be able to find a long term solution through a loan modification?
Foreclosures and short sales will be the only solution for the other 87%?
I’ll keep you posted and revisit this on the 10th of January, when the December numbers come out…
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Some Short Sales are just ‘UNCLOSEABLE’…
December 23rd, 2009 Categories: Pre Foreclosures, Real Estate News, Shortsales
The Sacramento Short Sale “Mirage”
Many of my Sacramento short sale home buyers have waited 4 to 6 months to close on a short sale, sometimes longer.
What is a Short Sale?
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