Shortsalenurse's HAFA Blog

February 11, 2011

The Administration Lays out the Program to Take Apart Fannie Mae and Freddie Mac, OBAMA the HOUSING SLAYER?

I can hear the arguments now.   It will go something like this, ” The Same Administration that can not make HAMP an HAFA work are planning to revolutionize the Housing Market.”    But then there will be those see this to be the silver bullet to the “vampires heart” that put us in this economic crisis.  Which will it be?  This marks day one , of the biggest political battle,   this Administration has embarked on.

The comments and questions are flying all over the Realtor Cell Phone Network.   Is this being done to save Health Care? That is just  one of the things I have already heard from another Politically active Realtor.   Thus far the response I have heard can be summarized into, you got to be kidding.

I got to admit on question made me wonder, will this be the loss where health care was considered the win?  One thing that is for sure,  “CHANGE” has arrived.  Now will “HOPE” drive this thought to reality.  Only time will tell.   Read the entire Treasury Proposal – program here!

I posted this article at about 8:30am today,   by 2:00pm the California Association of Realtors posted this response.    (read the Car Press Release here)

See all the HAFA rules at www.HAFA.us

All Marketing done with the Assistance of Kalabash Marketing!

Good Night Mrs. Kalabash were ever you are!

George Kenner, Broker Associate Keller Williams Realty – Ca. Lic 01229951

Let’s Change the  Secret Message for Mrs. Kalabash, Private No Looking!

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October 25, 2010

Notice of Default Search System, Will this help with HAFA?

Many of my clients were looking for an easy way to see if a Notice of Default had been filed on their property.  Considering the ROBO Signing Scandal and the “fast tricks” that the banks have been caught playing people are lots more suspicious of the process of Short Sales and Foreclosure.

This is a widget from www.ForeclosureRadar.com that will allow you to get a better look of what is happening in your area.  If you need more specific information please let me know, I will aid you get the public records that you need.  You can go straight to the widget at HAFA.us  by clinking  **HERE**

 

George Kenner, Broker Associate,  Keller Williams 619-723-5714

CA. Lic. 01229951  “good Night Mrs. Kalabash where ever you are.”

January 11, 2010

No, an HRC is not a new Car in the Toyota line up!

As the banks and the government continue their attempts to resolve the Housing Crisis every now and then they fall upon a great idea.  Home Retention Counselors are one of those great  ideas.

Many of the major banks have hired third party companies to contact homeowners in distress.  These companies have contracted  with trained real estate professionals to visit  clients homes in person.  The Banks want a pleasant human face to share the fact  they want to help.  The Banks believe their clients need to know the new  Treasury Department programs may help when other options have failed.

In some cases HRC’s  are there to offer help with getting documents together,  in other cases they are there to let the client know there may be an opportunity to Short Sell the home.  In some cases Major Banks are offering  as much as  one percent of the value of the home if someone “Short Sells” instead of forcing a Foreclosure.

Banks using  HRC’s in my opinion is  legitimate attempt by the banks, to an aid clients come to “Win Win” situations by using programs sponsored by the Government like the Foreclosure Alternative Program. That is one of the reasons that many of the Short Sale Nurse staff are trained Home Retention Counselors.

If an HRC has come to your door, again in my opinion they are not the enemy they are real estate professionals that want to direct you to some of the most up to date information about some of your options.   Because they are paid a stipend  by the Bank thought a third party HRC”s  are subject to Federal Fair Debt Collection Practices Act. They may report back to the bank what you want to do  and thus must disclose they are working for a “Bill Collector.

If you have any question about the role of an HRC  I am happy to answer your question or direct you to one of the third party companies that are aiding the banks.  More times than not the HRC will only request that you again open the lines of communication with the Bank to discuss the possibilities that exist based upon the Treasury Departments Foreclosure Alternative Program

As is customary in Real Estate the rule is disclose disclose,  disclose.  For that reason I will say I am not giving legal advise, it is always your right to consult and attorney as you feel it appropriate, no one should advise you not to contact and attorney.

If you want to learn more about the options that are going to be presented to you before your bank assigns a Home Retention Counselor  any of the Short Sale Nurse Staff members would be happy to visit you  and discuss the options.

All marketing done with the assistance of Kalabash Marketing

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

George Kenner is a Broker Associate at Keller Williams Realty in La Mesa, Ca.  Lic Number 01229951

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 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

June 18, 2009

Short Sales The Numbers Don’t Lie! But do they tell the whole story?

It is almost impossible to pick up a national newspaper and not real about the Real Estate Market.  The pace of foreclosures and the move to “Short Sales” seems to have changed the mantra of , “it started with Housing it will end with housing”.   If that comment had a truthful ring to it before,   it could be quite some time  before we really recover.

 

In many main stream media sources they are saying we are about 9 to 12 Percent of the mortgages in the United States are late in paying their bill and are prime to enter into foreclosure.  In the Wall Street Journal on Wednesday, June 17, 2009 they published some other numbers,  in what is  almost a full page article, they write about the attempts banks are making to keep up with this problem.  Some of these numbers are very interesting.

 

They say approximately 4 million loans were delinquent in the first quarter of 2009.  Then they say that Chase has 3500 employees working on just loan modifications.  This number may be a reason to give a little thought to the size of the problem in relation to the number of people working on it.    The files that are being addressed by the lenders is like a mountain and the workers trained to do the work is tiny in relationship to the problem.

 

The problem is greater than the number of mortgages being written and just a fraction of the people who had any mortgage experience are working on it.  I expect that the scope of the problem and the ability to respond to it by the banks will encourage them to continue to look harder and harder at short sales. 

 

One interesting comment in the article is that the loan modification process is free.  They also speak of firms being criticized for cheating people who do not know they have a right to ask for the help for free.   This is a great feature of the President’s “Foreclosure Alternative Program” it is started with a look at a Loan Modification and then goes to Short Sale.   Learn about the Presidents Plan it could make a big difference in your future.

 

This article was written by George Kenner, a Ca. Broker with 19 years Real Estate Experience.  He will answer questions with a private response if written to him at http://www.shortsalenurse.com

June 14, 2009

How to treat our Clients

I was recently asked by a fellow agent how to approach a client who has had a “notice of default” file against their home as the first step of foreclosures. There was not a nano second that passed in my thought process until my one word answer was formulated, the word was respect. Approach your clients with respect.

Our unemployment rate in California is at or approaching 10 percent, in many communities . There are rumors and threats that even our State Employees are at risk of losing their jobs. Teachers, fire fighters and other public employees are worried. The point here is that good people who want to work and pay their bills on time, just can not do it in this economy. Think of those in the automotive business, that have been down sized or removed. These were hard working people that kept our communities moving.

My peers and I are exposed daily to just this type of situation. It is not unusual to hear a story where someone has not made their house payment for several months and then finally the “Notice of Default” arrives and they are informed of the legal rights and the terms in the “Trust Deed” that allow for foreclosure.

The good news is our demands to our Government are being listened to at least in some regards. They are trying to slow the process of a falling economy. There efforts coupled with industry will pull us out of this spiraling whirlpool into a depression.

The idea of short sales as presented by the Treasury I believe is a good idea. This Foreclosure Alternative Plan, allows for a smoother transition for families that can no longer meet the same level of financial obligation that they had previously. It treats people with more respect and understanding and in some cases my allow people another opportunity to catch up on their mortgage.

One or the reasons residential construction is down to the levels it is because it is less expensive to buy a home an existing home than it is to build new. As soon as the demand rises we will be back on the path to a more solid economy. Short Sales and Foreclosure will be a thing of the past. I will tell you this Real Estate Broker / Realtor is looking forward to the day that my clients more secure in their homes.

The answer to the question is still treat your clients with respect, aid them with their needs and point them in the direction that the best information points. Today without more changes in the law “Short Sale” looks like it could be the best direction.

Were is the Real Estate Market Going

We have all heard it said, “we never promised you a rose garden”.  Well who would have thought that real estate would fall in value in some areas by close to half its value.  The simple answer to that question is,  no one who was buying a home in the last 4 years.

 But the facts are the facts and values have fallen.  In some areas of the United States people are saying we are at the bottom of the market and prices are going up, as up is the only place price have  to go.  Others are losing their homes and looking a working on a “Short Sale” with their lender.

 The media announce with some frequency   stories of the shadow inventory of foreclosures that are sitting in the wings waiting to come to market.  What does this mean to all of us.  Well, I am hear to tell you that trying to predict the future is no easier now than it was for most home buyers  when they purchased at the peak of the market.

 I think the number one rule for all home buyers is to look at any purchase as their home not an investment.   A home is a place where you  are happy to lay your head on a pillow and go to sleep after a hard days work.  A home is a place where you take pride in bringing your friends and family. 

 It is true we have historically high foreclosure and default rates.   The Government has come up with plan after plan to try and slow this process.  I recently hear an economist  speak in San Diego to a large “Investment Club” and he said that these Government efforts to slow  foreclosures presents a difficult problem in tracking the problem from a historic standpoint.  The problem being this is all new and the plan may just be working.  There is however still no way to predict the outcome of the plans, just like it is impossible to read the future.

 President Obama’s Foreclosure Alternative Program may be some help as it attempts to save some homes in a loan modification program and still others may be aided by the Pre Approved Short Sales.   This Program may aid the bank avoid the properties being destroyed by angry homeowners that are losing their homes.

 In my opinion no one more than experienced Realtors would like to see the market stabilize.  We see the sadness in people’s eyes as they lose part of the “America Dream”.   But we are Americans,  we will come out of this and we will help our fellow man as we can.  Soon the anger will subside and we will be back at work, because we are Americans and we have seen worse things and overcome.  It is not part of our character to give up on anything.   Our homes are part of our dreams and we do not give up on our dreams.

June 13, 2009

The President’s New Short Sale Program

Not only are homeowners scrambling to figure out how to fix their financial position so is the Treasury and the FDIC. President Obama has announced a new program to help people in mortgage distress, it is called the “Foreclosure Alternative Program”. The entire details can be seen at the United States Treasury web site.

My summation of the program is that the President would like to see lenders attempt loan modifications and if that process fails to aid the homeowner short sell their home. To do this the lender or homeowner will select a local area short sale Realtor to assist in the process. It is my understanding some lenders will have preferred or approved Realtors who are experienced in the short sale process.

If this process “short sale process” fails the lender will take possession of the property under terms less forceful that a full foreclosure called a “deed in lieu”. In some case it even appears that the lender may provide funds to the homeowner to make arrangements to leave the property provided it is still in good condition.

This program on its face appears to be a good move in the right direction. It is relatively new and even some of the Real Estate community is not yet aware of it. Like all Government Programs it has the details to be worked out.

This will not change the advise that I give to my clients. That advise being consult with an attorney and a tax professional to see how a short sale could effect your own situation. This is the same advise the California Association of Realtors provides in their Short Sale form.

As a team we at shortsalenurse.com and Prudential California Realty work hard to stay on the cutting edge of how our San Diego County clients are effected by changes in the law. In the coming days as the Foreclosure Alternative Plan develops we will continue posting on this blog.

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