Shortsalenurse's HAFA Blog

December 23, 2009

The Good the Bad and the Ugly

When I saw this movie the first time,  I was a kid seated in a hospital theater on Camp Pendleton.  I was  just mesmerized by Clint Eastwood and the music of Hugo Montenegro. I did not know that the movie title would become a cliche for business news related to mortgages some 43 years later,  but it has. 

Today in an AP news article Yahoo announced that home sales were up and the recession was recovering, that was good news.  But then the L.A. Times went and ruined the positive news with word that  12.5 percent of mortgages were not paying  and the currently defaulting loans are prime loans not subprime.  That was not only  bad but  ugly news no one wants to hear.

I got word from a client that Bank of America had set up information on their web site about doing a “Short Sale” .  This reminded me at the end of the movie.  The “Good” came out on top.   And we are going to come out on top of this situation also.  These are rough times for all of us, but we will survive by working together because that is what communities do.   We help our neighbors and we care.  If you looking to do a “Short Sale” instead of being foreclosed upon please call us we can aid you determine your best path.

If your looking for a good lender,  one of my favorites is Sally Soto also from Bank of America in the La Mesa Mortgage Center.   She is not only very knowledgeable she is a prior Real Estate agent,  fluent in Spanish.  If you have any question about loans or need a contact at Bank of America she is always happy to help. 619-337-3409  – sally.soto@bankofamerica.com

This article was written by George Kenner, Broker Associate Lic. 01229951

All marketing done with the Assistance of Kalabash Marketing

“Good Night Mrs. Kalabash where ever you are.”

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December 20, 2009

Enter the Bermuda Triangle a Foreclosure and Exit as a Short Sale

Looking at the “Matrix of Numbers” is very important when your trying to solve any problem, so lets address two numbers.   At the time this is being written (Dec 19, 2000)  there are 19,495  properties in San Diego County that are in the formal process of foreclosure.  (this number can be verified at www.ForeClosureRadar.c0m)  This number is twice what is available in the Multiple Listing Service. The main stream media has labeled this  as the shadow inventory.  In this broker’s opinion  the  shadow inventory  being twice as large as the MLS,   is like a rouge elephant who is walking towards the housing market.

Foreclosure  is a rough process that no one enjoys , the banks hate it because they end up with destroyed properties,  the Sheriff hates it when he arrives to remove the people, the people hate it because losing ones home is very emotional. The Local Government of course would have difficult times dealing with homeless people.   The Foreclosure Process  is truly the Bermuda Triangle of home ownership and the responsibilities that come along with it for everyone involved.

So now our economy has established the problem lets evaluate the solution that the Government and banks have presented.   In early 2009 the Treasury introduced a Program called the Foreclosure Alternate Program.   This established that it would be better for the Banks to leave people in their homes while a “Short Sale” could be arranged for.  Implementation of the program has been slow but as unemployment has risen and property values have fallen making that shadow even larger.     I will compare this to being bounced around in the Bermuda Triangle but the exit is about to arrive.   The Treasury has set a date (Apri 2010)  and guidelines  for  the Banks to follow established Short Sale Protocols.

The  April 2010 date  seems to coincide with the the actions of the major banks and Fannie Mae who have suspended foreclosures during the holiday season.   Of course this reprieve for family’s over the holidays will come an go as the clock ticks.

I can only speculate but I believe  that shortly after the holidays the Government will be discussing the Foreclosure Alternative Program in the Media with a much greater frequency.  Trade organizations  like the California Association of Realtors are now sharing what they know with their members about the program.  They have  posted the broad programs as they have been presented to them on the internet.

This article was written by George Kenner, Broker Associate at Keller Williams Realty in La Mesa.   He like  all the other Realtors at Short Sale Nurse specialize in this market area.   Their experience and professional contacts can aid anyone though what feels like the Bermuda Triangle, call them today for a free consultation.

All marketing is done with the Assistance of Kalabash Marketing

“Good Night Mrs. Kalabash where ever you are.”

Lic. 01229951

December 17, 2009

Citi banks Slows Foreclosures, Treasury Announces Improvements to Short Sale Process

Today Citi Bank announced that they were going to slow the Foreclosure Process for all of their clients for 30 days, to cover the holiday season.  This does not apply to all the Citi serviced loans but does cover what is supposed to be the majority.   The news from Citi is however  not the Big news of “The Week”.

The Treasury Department has announced changes to a program that could aid thousands of Americans.  (this change will start in April 2010) The basic change is that they are getting more forceful with the lenders or so at least that is the impression that is desired.   To describe the changes that are the most important I will just cut and paste what the California Association of Realtors said

“The HAFA program will permit pre-approved short sale terms before a property is listed; prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval; release borrowers from future liability for the debt; and provide financial incentives to borrowers, servicers, and investors.”  Here is a link to the program for the complete details   This is provided by the California Association of Realtors.   They are working on the final details of the Plan with the Government and expect this to be a positive move forward for all.  If you have any questions and would like to know how this program could assist you, please contact any of the Agents on the Shorts Sale Team.  We follow this infomation as closely as possible to aid our community.

 

This article was written by George Kenner, Broker Associate Lic. 012229951

 

December 12, 2009

Real Estate Planning and the FDIC

Thursday November 10, 2009    I attended the FDIC Vendor Conference in Los Angeles to listen to some of the most important Government vendors (professional services providers)  on the planet.  In the 1990s the FDIC had a staff of approximately 23,000 people to solve the last economic crisis but this time around they have changed the business model and are contracting with large accounting firms to aid in the closing of banks and liquidating assets.  Clearly this is a plan to avoid expanding government on a permanent basis by contracting companies  to handle the crisis.

The issue of concern and interest  to the approximately 250 invited  Residential Real Estate Brokers  from  the western states is how the FDIC will dispose of  the homes that become government-owned properties.    I will say that rumor on the floor among brokers was rampant  but a clear direction was not announced.  What was announced was that next year 2010 approximately 400 Banks will be closed ,so what I had heard as a Wall Street Journal and CNN  rumored reports became a real story for me, I saw it on the FDIC Power Point Presentation, with hundreds of other people.

The Brokers speculated on information provided by informed sources that more asset management companies will be hired by the  FDIC  to aid with disposing of homes.   Clearly the housing problems are apparent to the FDIC.  They do not have their heads in the sand.  They may feel like they are running in quick sand but they see the situation,  as do attorneys and accounting  professionals that are members of our communities and are being hired to help.  I strongly sensed they want to protect our country,  these are not people without faces and hearts.

I was able to have about a 20 minute discussion with the head accountant that closed one  San Diego Bank and he said he did all he could to make sure the transition to the new bank was as smooth as possible and fought to save jobs.  This was not hollow talk this was a man with great respect  and reverence for the situation, the people and the life savings that were involved.

I will say the professional accountants  did express a need for a  more unified approach by the different agencies.  Many of the Brokers asked which conflicting report to believe as it has  been reported  the Obama Administration has said “loosen up the money and start lending” and at the same time ,  yesterday before the  conference FHA announced they wanted to increase the down payment requirement for loans from 3.5% to 5% ,and just a few days earlier Realtors were notified that expense ratios for loans from Fannie Mae were going to get tighter, and thus loans were going to become harder to obtain.     To real estate professionals this is clearly a conflicting policy and thus illogical.

There was discussion about the ” Making Homes Affordable” and the Treasury “Foreclosure Alternative Program” but they were all unofficial.  It appears Short Sales are going to be the approach if at all possible even for the FDIC but that is far from being written policy I can find.    I encourage anyone that is currently in default to read these programs.  Everything is in flux, things are changing daily and I promise to do my best to keep the blog readers informed with the links to the Government Programs and Media articles that could affect us.  The entire Short Sale Nurse Staff is  always ready to consult with anyone facing a short sale or foreclosure situation free of charge.   There are solutions and everyday more options are presenting them self.  There is Hope NOW!.

This article was written by George Kenner, Keller Williams Realty Lic. 01229951.

All Marketing is done with the assistance of Kalabash Marketing

Good Night Mrs. Kalabash where ever you are.

December 2, 2009

Changes in the Short Sale Process , Obama Summons Bankers?

Based upon information in two articles the following facts have been established.  Assistant Treasury Secretary Michael Barr stated the Administration has summoned executives from the largest mortgage companies to Washington in the first week of December to explain the poor performance of Banks to do loan modifications.  This is of course not helping  families stay in their homes.  There seems to be a concern to how rising unemployment which is creating more foreclosures can be addressed.

There is some industry and Government discussion of how some loans are considered for principle reductions but others are not. This of course is creating a situation where clients do not feel they are being treated fairly according to the articles  being published in the news papers including the Wall Street Journal.

Also on Monday the Treasury Department laid out additional guidelines for the Foreclosure Alternative Program that established a short sale protocol.  This is very important as financial support to the banks and mortgage servicers is tied to this program.  The most important change is borrower must be FULLY RELEASED from future liability for the debt according to the guidelines.   This could soften the effect of losing your home and possible future legal demands for the debt that is short sold.   This could in fact be the very best  news to come out of Washington in the recent months for people who are behind on their mortgage.

Everyone at Short Sale Nurse stays as current on  changes in policies that can effect our clients.  Anyone can tell that our economy is still in a state of change,  and we highly agree with the position of the California Association of Realtors, that position is,  clients should consult an Attorneys and Tax Professionals before committing to a Short Sale, every situation is different.


Short Sale Nurse is a group of deticated Realtors serving the needs of clients in all of San Diego County and is capable of putting you in touch with Keller William Agents all over the United States to fill your Real Estate needs.  We are located at 4700 Spring Street La Mesa CA. 91942

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