REALTOR® Magazine-Daily News-6 Reasons Why Some Homes Sell

REALTOR® Magazine-Daily News-6 Reasons Why Some Homes Sell: "* Lousy pictures on the Web.
* Priced too high for the neighborhood.
* Blah interior; ho-hum landscaping.
* Little online marketing and hard-to-find MLS listings.
* Low commissions. Practitioners make sure their customers see properties that offer a payoff.
* Miserable maintenance, including ceiling stains, leaky faucets, and ancient furnaces."

orange county short sale info

Selling short can be scary - Sacramento Business, Housing Market News | Sacramento Bee

Home Front: Selling short can be scary - Sacramento Business, Housing Market News | Sacramento Bee: "A second concern

People trying to do short sales also are worrying about reports that some lenders are selling second mortgages – typically the down payment loan – to collection agencies. They fear that in three or four years those agencies will be on the phone seeking payment.

Hainsworth confirmed it's happening. Elk Grove bankruptcy attorney Jonathan Stein said the owner of a 'second' has up to four years after the default date to collect. He said it's critical that your real estate agent negotiates a solution to the second.

Stein fears some people will rebuild credit scores after the hit of a short sale only to file bankruptcy when confronted later by a collection agency."

For more info about proper short sale negotiation

Foreclosure and short sale issues - posted on another thread

Real Estate Blog - Stall Your Foreclosure........Guaranteed!!!

sorry to burst the bubble of those who somehow (I'm sure none of you active agents sold anyone a home that has gone down in value) don't seem to want to take ANY responsibility for this downturn, but

FIRST...those of you who keep saying you are dealing with a bank...duh...what banks...these are loan pool servicers who have licensed the names of banks and shot off into partnerships which, as a REMIC, these servicer/lenders ARE NOT allowed to own the loans that they are telling you to submit short sale/loan mod documents...part of the issue is that the world has changed and most real estate professionals have no idea what a cusip is, a bloomberg loan pool number is, or even that there is something known as the trust indenture act of 1939...time to get into the 21st century and understand that just because it said the word MORTGAGE loan on it does not mean that it was or remained that way...

SECOND...to make ugly profits and deprive borrowers of the real low interest rates being passed thru on these financing instruments(start using the right terms), the depositers/sponsers would use the splitting up process available in a REMIC loan pool tranche, to synthsize the pass thru elements, and earn 30 - 250% on the upper non AAA rated tranches...how did they do that with a loan paying only 5% ??? Because by getting a ratings agency(s&P or moody's) to rate the majority of the paper in the pool structure AAA(70-80% of the loans), then they would resell the pass thru instruments to YOUR money market accounts...and how much have money market accounts been paying in the last 5 years ??? Pretty darn low rates...they would keep and repackage the rest of the finacial stream...for those of you who actual know how to use an HP-12c, make sure you are sitting down when you do the math...

THIRD...that was not enough profits...they then turned around and sold derivatives on the different parts of the tranches...the best way to describe what a derivative is(for those who can think beyond the first day of real estate agent school)it's like an option to purchase a home...but what if someone sold multiple options on the same home ??(for those who say you can't, as long as it is disclosed and the price point of the other options are built in and disclosed it can be done)...but what if that was not enough greed on the loan pool investor side...what if you then realized that no one was watching and you started trading naked option positions, justifying it by saying you can always buy them back later...THAT is why the system froze up on August 7, 2007, when BNP Paribas REFUSED to pay out on derivative positions it had taken fees on to insure some positions tied to American Home Mortgage which had folded the day before...and if you want to get a better understanding of what I just said and why it matters google this [delphi +derivatives +bankruptcy ] and it will bring you to some reports that described that in the delphi bankruptcy(which is still not over), there were about 2 billion in actual bonds outstanding but there were over 30 BILLION in derivative contracts with each party thinking they had bought the prime position...

FOURTH...just because SOMEONE shows up claiming you OWE SOMEONE money, does not mean the actual person who you owe money to is trying to collect...most FLORIDa foreclosures are being filed by and in the names of entities that do not show up as the owner of the debt in the county records and is not properly registered to do business in the State of Florida...and in some cases, are actually NOT passing thru the payments to the loan pool investors(billions of dollars in lawsuits currently on this issue)

SOOOOO.....stop thinking we are back in the days of George Bailey..those banking days are over...Since everyone wants to have 24 hour access to their money, every day is a bank run day...to insure there are no regular daily crashes, financial instruments were homogenized since the last S&L crisis, when REMIC's were created by the tax code in 1986...this was to allow financial institutions to trade in financial instruments to the central banking system to allow them to borrow funds overnight when more depositors yanked out money from their atm than was sitting on the cash side of the financials of the lender...what developed at the turn of the century was that by reducing the FEDERAL DEFICIT, Clinton actual hurt the banking system by removing US Treasuries from the pool of available capital...and THE ENTIRE WORLD needs US taxpayer backed FEDERAL DEFICIT CERTIFICATES commonly known as TREASURIES since there is not and has NEVER been enough GOLD to back up the worlds financial systems...AND then add in the crazy BASEL 2 rules designed to offset the lost decade of japanese banking but has turned into a mess that led overseas financial institutions to BEG WALL STREET to find some or create some AAA rated instruments so that they could keep growing...so what is some lonely wall street exec to do when someone is throwing money at them and insisting that SOMETHING be done....??? can you say NINJALOAN ???

Stumbling block to economic recovery: Rising jobless rate accelerating foreclosure crisis - San Jose Mercury News

Stumbling block to economic recovery: Rising jobless rate accelerating foreclosure crisis - San Jose Mercury News: "Stumbling block to economic recovery: Rising jobless rate accelerating foreclosure crisis

By Alan Zibel and Tammy Webber

Associated Press
Posted: 07/16/2009 01:00:46 PM PDT

WASHINGTON — Relentlessly rising unemployment is triggering more home foreclosures, threatening the Obama administration's efforts to end the housing crisis and diminishing hopes the economy will rebound with vigor.

In past recessions, the housing industry helped get the economy back on track. Home builders ramped up production, expecting buyers to take advantage of lower prices and jump into the market. But not this time."

No recovery in California until 2011, forecast says - Los Angeles Times

No recovery in California until 2011, forecast says - Los Angeles Times: "Unemployment in California and Los Angeles County will increase well into 2010, continuing to exceed the highest levels since at least the end of World War II, according to a local economist whose projections for the Southland economy are among the most negative to date.

Continued sluggishness in key industries such as construction, retail, international trade and hospitality will keep the state from a full recovery until 2011, said the report, released by the Kyser Center for Economic Research at the Los Angeles County Economic Development Corp."

Loan Modification programs may work for unemployed

REALTOR® Magazine-Daily News-Unemployed Might Get Anti-Foreclosure Help: "The Obama administration is reportedly considering a program that would give loan forbearance to the unemployed. The aim of the program is to provide help without distorting the housing market.

The program would augment the federal loan modification program, giving unemployed workers more time and financial leeway to qualify for a new loan.

So far the loan modification program hasn’t been very successful for a variety of reasons, including the declining equity many troubled borrowers have in their homes and rising unemployment figures that make lenders unwilling to participate."

I will believe this one when I see it. So far almost all these initiatives have been good for the lenders and not the borrowers. This one might be useful for the temporarily unemployed.

I suspect it will still have some sort of taxpayer payout to the lenders.

loan modification programs

State Bar Cracking Down on Loan Modification scam

News Releases from California state bar on loan modification scams

The State Bar will continue to take every step to see to it that any attorney who engages loan modification fraud will no longer be permitted to practice law, and will cooperate with prosecutors in their pursuit of such criminal conduct.

Please note the state bar went after a lawyer who formed a partnership with a non lawyer.


If you are working with an "attorney backed" loan modification firm you are probably working with a lawyer conducting business in an unethical manner or an outright scam. 

If you wish to work with an attorney make sure you hire a law firm. Speak with the attorney and ask if he is representing you.  If he says, make sure his retainer says so.  Don't hire a loan modification firm with attorneys on staff.  That is almost definitely a "bullshit" operation. 

 

Loan modification info