A quote from a comment to the article cited in my previous post about San Diego Real Estate.
By MJB on 08/19/2007
Bankers are getting quite cranky,
forced to give up their loan hanky-panky.
"Let's foreclose on the fools
who followed our rules,
and blame the whole mess on Bernanke!"
Tuesday, August 21, 2007
SignOnSanDiego.com > News > Business > Dean Calbreath -- S.D. housing market may only be in eye of storm
SignOnSanDiego.com > News > Business > Dean Calbreath -- S.D. housing market may only be in eye of storm: "This trend will worsen next month, which is the two-year anniversary of the nationwide peak in the housing boom. By October, more than $50 billion worth of adjustable-rate mortgages will require higher monthly payments, and that number is projected to grow by more than $30 billion each month through September 2008, according to the Credit Suisse banking firm. Because many of the borrowers could scarcely afford to make their payments at the teaser rates, they are going to be in a bigger bind when the rates adjust upward. Even if the Federal Reserve moves to push interest rates lower, many borrowers will be forced to sell their homes at a loss or go into foreclosure. Already, the number of"
Sunday, August 19, 2007
Loss Mitigator: The Ins and Outs of Short Sales & Understanding Credit Reports/ Q&A
Real Estate Blog - Loss Mitigator: The Ins and Outs of Short Sales & Understanding Credit Reports/ Q&A
The author of the article gives us his notes after going to a lecture from a "Loss Mitigator".
Please be aware the information regarding deficiency and tax liability does not apply to many California real estate owners. California has a complex web of consumer protection statutes which protect many California homeowners from deficiency judgments. (Tax liability is another complex area of law. It should only be tackled by a lawyer with the tax regulations in front of him (or her), and understanding of the anti-deficiency statutes and case law.) Finally, it is my opinion a short sale is rarely the best option for a California homeowner. In fact from my perspective the Lender is the party who should be suggesting the short sale and making the concessions if the homeowner negotiates properly.
Here is my condensed version of the "notes" for the lecture.
Credit Reports
A credit history which shows a history of making mortgage payments is important. Lenders may forgive missed payments if the applicant had a very good reason for the missed payments.
The above information about credit may not apply during our current credit squeeze. (I think there is a strong chance this will hold true in the future.)
Short Sale Negotiation
The negotiator should convey the following:
- We want to work with with you (the lender) to minimize your loss.
- We have determined reason for delinquency. (What factor did the lenders miss during underwriting which should have tipped the bank off to the increased risk.
- Ask the bank if it is willing to give up some of the fees and penalties to get a sale done.
- Also ask the bank if they are willing to reduce the principle.
- At the time of the lecture the loss mitigator stated the banks did not want to believe their appraiser would have let the borrower pay too much for the real estate. (Banks no longer suffer from this illusion.)
- It is helpful to have the listing aged and to show the property has zero interest at a higher price.
- The loss mitigator does not make the decision, he packages it up for a supervisor or officer at the bank.
- And now perhaps for my favorite piece of advice which I have suggested before. Attorneys have options which bring the loss mitigators or the foreclosure departments to the negotiating table. If your home is in danger of becoming upside down, you should work with a San Diego attorney who understand this area of the law. Your short sale team should have a licensed California attorney and a licensed California real estate agent.
"Again, banks do not want to believe they made a mistake by approving your homeowner. However, they want to minimize losses. They also want to avoid a bankruptcy filed by the homeowner at the very last minute right before the forced sale. If you can document your homeowners desire to file bankruptcy (via attorney letterhead) then you may have a better chance at getting the short sale done according to your terms."
The author of the article gives us his notes after going to a lecture from a "Loss Mitigator".
Please be aware the information regarding deficiency and tax liability does not apply to many California real estate owners. California has a complex web of consumer protection statutes which protect many California homeowners from deficiency judgments. (Tax liability is another complex area of law. It should only be tackled by a lawyer with the tax regulations in front of him (or her), and understanding of the anti-deficiency statutes and case law.) Finally, it is my opinion a short sale is rarely the best option for a California homeowner. In fact from my perspective the Lender is the party who should be suggesting the short sale and making the concessions if the homeowner negotiates properly.
Here is my condensed version of the "notes" for the lecture.
Credit Reports
A credit history which shows a history of making mortgage payments is important. Lenders may forgive missed payments if the applicant had a very good reason for the missed payments.
The above information about credit may not apply during our current credit squeeze. (I think there is a strong chance this will hold true in the future.)
Short Sale Negotiation
The negotiator should convey the following:
- We want to work with with you (the lender) to minimize your loss.
- We have determined reason for delinquency. (What factor did the lenders miss during underwriting which should have tipped the bank off to the increased risk.
- Ask the bank if it is willing to give up some of the fees and penalties to get a sale done.
- Also ask the bank if they are willing to reduce the principle.
- At the time of the lecture the loss mitigator stated the banks did not want to believe their appraiser would have let the borrower pay too much for the real estate. (Banks no longer suffer from this illusion.)
- It is helpful to have the listing aged and to show the property has zero interest at a higher price.
- The loss mitigator does not make the decision, he packages it up for a supervisor or officer at the bank.
- And now perhaps for my favorite piece of advice which I have suggested before. Attorneys have options which bring the loss mitigators or the foreclosure departments to the negotiating table. If your home is in danger of becoming upside down, you should work with a San Diego attorney who understand this area of the law. Your short sale team should have a licensed California attorney and a licensed California real estate agent.
"Again, banks do not want to believe they made a mistake by approving your homeowner. However, they want to minimize losses. They also want to avoid a bankruptcy filed by the homeowner at the very last minute right before the forced sale. If you can document your homeowners desire to file bankruptcy (via attorney letterhead) then you may have a better chance at getting the short sale done according to your terms."
Saturday, August 18, 2007
North San Diego County Real Estate
A natural correction -- Psychology, shakeout of speculators slowing regional real estate market, not economy North County Times - North San Diego and Southwest Riverside County News
If you are looking for a reason to buy and hold San Diego real estate this is the article your need to read.
The most interesting point made is that San Diego keeps adding jobs. One third of a million jobs since 1993.
If you are looking for a reason to buy and hold San Diego real estate this is the article your need to read.
The most interesting point made is that San Diego keeps adding jobs. One third of a million jobs since 1993.
Top 10 Foreclosure Cities - Yahoo! Real Estate
Top 10 Foreclosure Cities - Yahoo! Real Estate
California has 4 cites on the to 10 foreclosure list
The top 10 rates of foreclosure are:
1. Stockton
2. Detroit
3. Las Vegas
4. Riverside/San Bernardino
5. Sacramento
6. Bakersfield
7. Denver
8. Miami
9. Memphis
10. Cleveland
California has 4 cites on the to 10 foreclosure list
The top 10 rates of foreclosure are:
1. Stockton
2. Detroit
3. Las Vegas
4. Riverside/San Bernardino
5. Sacramento
6. Bakersfield
7. Denver
8. Miami
9. Memphis
10. Cleveland
San Diego California Foreclosure Timeline
Foreclosure Timeline in San Diego and the rest of California.
Day 1 - Notice of Default (NOD) gets recorded
Within 10 Days - Notice of Default is mailed
30 Days - Notice of Default is mailed
3 months - Lender can have a sale date set by the Trustee
At least 20 days before sale - Publish, Post and mail notice sale.
25 Days before sale - Notification to IRS if necessary
10 Days after first notification - Send info to beneficiaries
The above is basic non judicial foreclosure timeline for California. Typically a lender waits for a few payments are missed, before commencing the foreclosure process, however there is no guarantee the lender will grant a homeowner extra time.
Day 1 - Notice of Default (NOD) gets recorded
Within 10 Days - Notice of Default is mailed
30 Days - Notice of Default is mailed
3 months - Lender can have a sale date set by the Trustee
At least 20 days before sale - Publish, Post and mail notice sale.
25 Days before sale - Notification to IRS if necessary
10 Days after first notification - Send info to beneficiaries
The above is basic non judicial foreclosure timeline for California. Typically a lender waits for a few payments are missed, before commencing the foreclosure process, however there is no guarantee the lender will grant a homeowner extra time.
Friday, August 17, 2007
Short sale addendum California Association of Realtors
The following is the addendendum mentioned in my article the law as applicable to Short Sale in San Diego.
C.A.R. RELEASES NEW SHORT SALE LISTING ADDENDUM
The CALIFORNIA ASSOCIATION OF REALTORS(r) (C.A.R.) released yesterday
a new standard-form Short Sale Listing Addendum (SSL). Listing agents
may attach this addendum to their listing agreements to advise sellers
of various aspects of short sale transactions. Key provisions of the
Short Sale Listing Addendum include the following:
- Advises that the seller may be required to bring in funds to close
escrow or to obtain lenders' agreement to accept less than what's
owed.
- Advises that alternatives to a short sale may be more appropriate,
such as refinancing, bankruptcy, or foreclosure, depending on the
seller's own circumstances.
- Authorizes the listing agent to advertise a property as a short sale.
- Authorizes the listing agent to contact lenders concerning their
approval of a short sale.
- Advises the seller that a short sale has possible tax, credit, and
other legal consequences. "
C.A.R. RELEASES NEW SHORT SALE LISTING ADDENDUM
The CALIFORNIA ASSOCIATION OF REALTORS(r) (C.A.R.) released yesterday
a new standard-form Short Sale Listing Addendum (SSL). Listing agents
may attach this addendum to their listing agreements to advise sellers
of various aspects of short sale transactions. Key provisions of the
Short Sale Listing Addendum include the following:
- Advises that the seller may be required to bring in funds to close
escrow or to obtain lenders' agreement to accept less than what's
owed.
- Advises that alternatives to a short sale may be more appropriate,
such as refinancing, bankruptcy, or foreclosure, depending on the
seller's own circumstances.
- Authorizes the listing agent to advertise a property as a short sale.
- Authorizes the listing agent to contact lenders concerning their
approval of a short sale.
- Advises the seller that a short sale has possible tax, credit, and
other legal consequences. "
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