Your Property Connection

Big company Vs. Small Company

2012-01-31T12:53:00.000-08:00

Big company Vs. Small Company

If you are looking to buy or sell a home and trying to decide on what Real Estate Company to go with you might base your opinion on whether the company is the biggest or smallest real estate company.

Here are some objections:

· “We don’t want to work with a small company because large companies have more resources”
· “We don’t want to work with a large company because we may just be another number”.

Honestly, it doesn’t matter big or small we all have the same recourses to look up properties for you to buy or to advertise the properties. What you want to look for is the individual agent, ignore the company.

· Is the agent Honest
· Is the agent helpful to my situation
· Does the agent have experience
· Does the agent have any testimonials or references
· How are their follow up skills
· How often will they update me with information

Those are all the questions you should be asking. Because it is not the company that will take care of you, it is the “AGENT” that is going to take care of you.

I hope you found this information helpful.

If you are considering buying or selling, I’d like to have the opportunity to meet with you.

CONSUMER ALERT FRAUD WARNING REGARDING LAWSUIT MARKETERS

2011-12-27T08:32:00.000-08:00

California Department of Real Estate

THE SHORT VERSION: There have been laws put in place about advance fee collection from Real Estate professionals and ATTORNEYs. At least read the beginning of the article, this will give you some great information.
CONSUMER ALERT **

1. FRAUD WARNING REGARDING LAWSUIT MARKETERS REQUESTING UPFRONT

FEES FOR SO-CALLED “MASS JOINDER” OR CLASS LITIGATION PROMISING
EXTRAORDINARY HOME MORTGAGE RELIEF

By Wayne S. Bell

Chief Counsel, California Department of Real Estate

I. HOME MORTGAGE RELIEF THROUGH LITIGATION (and “Too Good to Be True”
Claims Regarding Its Use to Avoid and/or Stop Foreclosure, Obtain Loan Principal
Reduction, and to Let You Have Your Home “Free and Clear” of Any Mortgage).

This alert is written to warn consumers about marketing companies, unlicensed entities,

lawyers, and so-called attorney-backed, attorney-affiliated, and lawyer referral entities

that offer and sell false hope and request the payment of upfront fees for so-called “mass

joinder” or class litigation that will supposedly result in extraordinary home mortgage

relief.

The California Department of Real Estate (“DRE” or “Department”) previously issued a

consumer alert and fraud warning on loan modification and foreclosure rescue scams in

California. That alert was followed by warnings and alerts regarding forensic loan audit

fraud, scams in connection with short sale transactions, false and misleading

designations and claims of special expertise, certifications and credentials in connection

with home loan relief services, and other real estate and home loan relief scams.

The Department continues to administratively prosecute those who engage in such fraud

and to work in collaboration with the California State Bar, the Federal Trade

Commission, and federal, State and local criminal law enforcement authorities to bring

such frauds to justice.

On October 11, 2009, Senate Bill 94 was signed into law in California, and it became

effective that day. It prohibited any person, including real estate licensees and attorneys,

from charging, claiming, demanding, collecting or receiving an upfront fee from a

homeowner borrower in connection with a promise to modify the borrower’s residential

loan or some other form of mortgage loan forbearance.

Senate Bill 94’s prohibitions seem to have significantly impacted the rampant fraud that

was occurring and escalating with respect to the payment of upfront fees for loan

modification work.

Also, forensic loan auditors must now register with the California Department of Justice

and cannot accept payments in advance for their services under California law once a

Notice of Default has been recorded. There are certain exceptions for lawyers and real

estate brokers.

2 On January 31, 2011, an important and broad advance fee ban issued by the Federal

Trade Commission became effective and outlaws providers of mortgage assistance relief

services from requesting or collecting advance fees from a homeowner.

Discussions about Senate Bill 94, the Federal advance fee ban, and the Consumer

Alerts of the DRE, are available on the DRE’s website at www.dre.ca.gov.

Lawyer Exemption from the Federal Advance Fee Ban

The advance fee ban issued by the Federal Trade Commission includes a narrow and

conditional carve out for attorneys.

If lawyers meet the following four conditions, they are generally exempt from the rule:

1. They are engaged in the practice of law, and mortgage assistance relief is part of

their practice.

2. They are licensed in the State where the consumer or the dwelling is located.

3. They are complying with State laws and regulations governing the “same type of

conduct the [FTC] rule requires”.

4. They place any advance fees they collect in a client trust account and comply with

State laws and regulations covering such accounts. This requires that client funds

be kept separate from the lawyers' personal and/or business funds until such time

as the funds have been earned.

It is important to note that the exemption for lawyers discussed above does

not allow

lawyers to collect money upfront for loan modifications or loan forbearance services,

which advance fees are banned by the more restrictive California Senate Bill 94.

But those who continue to prey on and victimize vulnerable homeowners have not given

up. They just change their tactics and modify their sales pitches to keep taking

advantage of those who are desperate to save their homes

. And some of the frauds

seeking to rip off desperate homeowners are trying to use the lawyer exemption above to collect

advance fees for mortgage assistance relief litigation.

This alert and warning is issued to call to your attention the often overblown and

exaggerated “sales pitch(es)” regarding the supposed value of questionable

“Mass Joinder” or Class Action Litigation.

Whether they call themselves Foreclosure Defense Experts, Mortgage Loan Litigators,

Living Free and Clear experts, or some other official, important or impressive sounding

title(s), individuals and companies are marketing their services in the State of California

and on the Internet.

They are making a wide variety of claims and sales pitches,

and offering impressive sounding legal and litigation services, with quite

extraordinary remedies promised, with the goal of taking and getting some of your

money.
3 While there are lawyers and law firms which are legitimate and qualified to handle

complex class action or joinder litigation, you must be cautious and BEWARE. And

certainly check out the lawyers on the State Bar website and via other means, as

discussed below in Section III.

II. QUESTIONABLE AND/OR FALSE CLAIMS OF THE SO-CALLED MORTGAGE LOAN

DEFENSE OR “MASS JOINDER” AND CLASS LITIGATORS.

A. What are the Claims/Sales Pitches?
They are many and varied, and include:

1. You can join in a mass joinder or class action lawsuit already filed against your

lender and stay in your home. You can stop paying your lender.

2. The mortgage loans can be stripped entirely from your home.

3. Your payment obligation and foreclosure against your home can be stopped when

the lawsuit is filed.

4. The litigation will take the power away from your lender.

5. A jury will side with you and against your lender.

6. The lawsuit will give you the leverage you need to stay in your home.

7. The lawsuit may give you the right to rescind your home loan, or to reduce your

principal.

8. The lawsuit will help you modify your home loan. It will give you a step up in the

loan modification process.

9. The litigation will be performed through “powerful” litigation attorney

representation.

10. Litigation attorneys are “turning the tables on lenders and getting cash settlements

for homeowners”.

In one Internet advertisement, the marketing materials say, “the damages sought in your

behalf are nothing less than a full lien strip or in otherwords [sic] a free and clear house if

the bank can’t produce the documents they own the note on your home. Or at the very

least, damages could be awarded that would reduce the principal balance of the note on

your home to 80% of market value, and give you a 2% interest rate for the life of the

loan”.

B. Discussion.

Please don’t be fooled by slick come-ons by scammers who just want your money. Some

of the claims above might be true in a particular case, based on the facts and evidence

presented before a Court or a jury, or have a ring or hint of truth, but you must carefully

examine and analyze each and every one of them to determine if filing a lawsuit against

your lender or joining a class or mass joinder lawsuit will have any value for you and your

situation. Be particularly skeptical of all such claims, since agreeing to participate in

such litigation may require you to pay for legal or other services, often before any legal

work is performed (

e.g., a significant upfront retainer fee is required).

The reality is that litigation is time-consuming (with formal discovery such as

depositions, interrogatories, requests for documents, requests for admissions,

motions, and the like), expensive, and usually vigorously defended. There can be

no guarantees or assurances with respect to the outcome of a lawsuit.

Even if a lender or loan owner defendant were to lose at trial, it can appeal, and the

entire process can take years. Also, there is no statistical or other competent data

that supports the claims that a mass joinder and class action lawsuit, even if

performed by a licensed, legitimate and trained lawyer(s), will provide the

remedies that the marketers promise.

There are two other important points to be made here:

First, even assuming that the lawyers can identify fraud or other legal violations

performed by your lender in the loan origination process, your loan may be owned by an

investor – that is, someone other than your lender. The investor will most assuredly

argue that your claims against your originating lender do not apply against the investor

(the purchaser of your loan). And even if your lender still owns the loan, they are not

legally required, absent a court judgment or order, to modify your loan or to halt the

foreclosure process if you are behind in your payments. If they happen to lose the

lawsuit, they can appeal, as noted above. Also, the violations discovered may be minor

or inconsequential, which will not provide for any helpful remedies.

Second, and very importantly, loan modifications and other types of foreclosure relief are

simply not possible for every homeowner, and the “success rate” is currently very low in

California. This is where the lawsuit marketing scammers come in and try to convince

you that they offer you “a leg up”. They falsely claim or suggest that they can guarantee

to stop a foreclosure in its tracks, leave you with a home “free and clear” of any

mortgage loan(s), make lofty sounding but hollow promises, exaggerate or make bold

statements regarding their litigation successes, charge you for a retainer, and leave you

with less money.

III. THE KEY HERE IS FOR YOU TO BE ON GUARD AND CHECK THE LAWYERS OUT

(Know Who You Are or May Be Dealing With) - Do Your Own Homework (Avoid

The Traps Set by the Litigation Marketing Frauds).

Before entering into an attorney-client relationship, or paying for “legal” or litigation

services, ascertain the name of the lawyer or lawyers who will be providing the services.

Then check them out on the State Bar's website, at www.calbar.ca.gov. Make certain

that they are licensed by the State Bar of California. If they are licensed, see if they have

been disciplined.

Check them out through the Better Business Bureau to see if the Bureau has received

any complaints about the lawyer, law firm or marketing firm offering the services (and

remember that only lawyers can provide legal services). And please understand that this

is just another resource for you to check, as the litigation services provider might be so

new that the Better Business Bureau may have little or nothing on them (or something

positive because of insufficient public input).

Check them out through a Google or related search on the Internet. You may be

amazed at what you can and will find out doing such a search. Often consumers

who have been scammed will post their experiences, insights, and warnings long

before any criminal, civil or administrative action has been brought against the

Scammers.

Also, ask them lots of specific, detailed questions about their litigation experience, clients

and successful results. For example, you should ask them how many mortgage-related

joinder or class lawsuits they have filed and handled through settlement or trial. Ask

them for pleadings they have filed and news stories about their so-called successes. Ask

them for a list of current and past “satisfied” clients. If they provide you with a list, call

those people and ask those former clients if they would use the lawyer or law firm again.

Ask the lawyers if they are class action or joinder litigation specialists and ask them what

specialist qualifications they have. Then ask what they will actually do for you (what

specific services they will be providing and for what fees and costs). Get that in writing,

and take the time to fully understand what the attorney-client contract says and what the

end result will be before proceeding with the services. Remember to always ask for and

demand copies of all documents that you sign.

IV. CONCLUSION

Mortgage rescue frauds are extremely good at selling false hope to consumers in trouble

with regard to home loans. The scammers continue to adapt and to modify their

schemes as soon as their last ones became ineffective. Promises of successes through

mass joinder or class litigation are now being marketed.

Please be careful, do your own diligence to protect yourself, and be highly suspect if

anyone asks you for money up front before doing any service on your behalf. Most

importantly,

DON’T LET FRAUDS TAKE YOUR HARD EARNED MONEY.

This is from the Department of Real estate. www.dre.gov

Go Away Pests

2011-07-21T06:31:00.000-07:00

Keep Backyard Pests from Eating Your Greens
Backyard pests—squirrels, rabbits, moles—can destroy your landscaping and lawns. Here’s how to get rid of the ravenous critters. Read
7 Gardening Mistakes to Avoid
Even veteran gardeners make rookie mistakes, like giving plants too much water and too little space. Here are common garden blunders. Consider yourself warned. Read

Visit houselogic.com for more articles like this.

Short Sales - Do you Qualify?

2011-06-23T07:33:00.000-07:00

YES, everyone qualifies.

Some will tell you that you do not qualify for a short sale because you have to much money, to many assets or you do not have a true hardship.

I have worked over 300 short sales and must say, I have had all walks of life. Those that wanted to escape from their depleting value, families that needed to relocate for work, individuals who have had money in the bank and want to move down the street to avoid repairs. The short sales were successful on all of them.

Doing a short sale take planning. You create a plan to get into a house by saving money, cutting expenses, choosing the right agent, looking at 100's of homes and more. So why wouldn't you do the same on the way out?

Creating a plan for your money, a place to live, and planning for a future purchase are all important. So let's start today.

STEP 1: Call Lisa Welsh to create a short sale plan
STEP 2: Free Consultation in your home to go over options and plan
STEP 3: Let's see where the plan takes you and then we can move on.

HOA and Short Sales

2011-06-10T15:13:00.000-07:00

HOA and short sales do not mix well...

If you live in an area that has Home Owners Association dues, then you need to know a few basic facts.
1) You entered into an HOA agreement willingly
2) HOA is not a fee that a short sale lender will pay, so if you are doing or are going to do a short sale, you are required to pay that bill.
3) If you are not current, the HOA association could come after you and make you personally liable for the debt.

Keep this in mind. And if you want a professional short sale listing agent to handle the process for you. Give me a call, I know all the tools and tricks to getting them done.

CAR - Letter on Short Sales.

2011-03-11T08:25:00.000-08:00

Call me today for your free planning session and get results on your short sale.

Lisa Welsh 916.663.6623

March 10, 2011

An important message from the CALIFORNIA ASSOCIATION OF REALTORS®:

I write on behalf of the CALIFORNIA ASSOCIATION OF REALTORS®, whose 170,000 members continue to witness the devastating consequences the home foreclosure crisis is having on California’s families, neighborhoods, and communities on a daily basis.

The number of families affected by foreclosure is staggering. During the past three years, more than 640,000 Californians have lost their homes. With the number of homeowners who owe more than their home is worth hovering at 30 percent, experts predict there will be many more foreclosures in 2011 and 2012. Unless we take immediate, aggressive action to assist these homeowners, any meaningful recovery in the housing market and overall economy will continue to be delayed.

Tragically, only a fraction of those who face foreclosure will remain in their homes when all is said and done. Those whose incomes and financial circumstances meet strict guidelines may qualify for a loan modification that will reduce their monthly payment to more affordable levels. Yet the federal Home Affordable Modification Program (HAMP) is expected to prevent only 700,000 to 800,000 foreclosures nationwide before it expires at the end of 2012, and the program does little to help those homeowners who are unemployed or otherwise no longer able to meet their financial commitments. Their last hope is to sell their home, which often means convincing their lender or the investor who “owns” the loan (and, in many cases, the holder of a second mortgage lien and the mortgage insurer) to accept a “short sale.”

With a short sale, homeowners with a proven hardship negotiate an agreement to sell their home for less than the balance owed. Although not every homeowner or mortgage is eligible, those who are able to finalize a short sale avoid a foreclosure on their credit record and can move on with their lives. Last year, 20 percent of home sales in our state involved short sales.

Short sales can play an important role in our state’s economic recovery by accelerating the pace of home sales and reducing the inventory of bank-owned homes on the market. There are other benefits as well. Homebuyers who can qualify for a mortgage at today’s low interest rates also are able to purchase a home at below-market prices. Banks get a nonperforming asset off their books and avoid the headaches associated with disposing of assets they don’t want to own in the first place. Neighborhoods have fewer abandoned homes, and local businesses have more customers with money to spend.

Unfortunately, many homeowners are unable to successfully negotiate a short sale. According to a recent survey of 2,150 California REALTORS® who have assisted clients with a short sale, only three out of five transactions closed – even when there was an interested and qualified buyer.

What’s the problem? For one, no two mortgage agreements are the same, so it can be difficult to standardize short sale processes and procedures. Many homeowners have second mortgages, which further complicate matters. Then there’s the challenge of convincing multiple parties to take a financial loss or, in the case of loan servicers, to forego fees they otherwise might earn during the course of the foreclosure process. Poor and slow service by many banks and servicers has only exacerbated the problem. Horror stories abound from potential homebuyers and REALTORS® forced to wait 90 or more days for a response to a purchase offer or being required to fax short sale applications or other paperwork as many as 50 times. These delays discourage potential homebuyers from considering a short sale purchase and undermine the process for those who short sales are intended to benefit – the hundreds of thousands of families facing foreclosure.

Increasing the number of closed short sales by speeding up and streamlining the short sale process is one important way we can help California families avoid foreclosure and move our economy closer to recovery. That’s why the California Association of REALTORS® is taking steps to enable more families to arrange a short sale. Recently, we advocated for improvements to short sale guidelines established under the federal Home Affordable Foreclosure Alternative (HAFA) program. We’re meeting with major banks, U.S. Treasury officials, government-sponsored entities (including Fannie Mae and Freddie Mac), and others to urge them to standardize processes, comply with federal guidelines, improve communication with other stakeholders and increase staffing with the goal of eliminating service issues. We’ve also offered our members training in every aspect of the short sale process so they can assist their clients.

But we can’t do it alone. That’s why we’re focusing the spotlight on short sales and calling on regulators, elected officials, nonprofits, business organizations, companies, and individuals with a stake in California’s economic future to resolve this issue and others that get in the way of a recovery. It won’t be easy, and some compromises will be required. The important thing is that we need to act today. Our families and our communities can’t wait any longer.

Sincerely,

Beth L. Peerce
President
CALIFORNIA ASSOCIATION OF REALTORS®

Short Sale Reform

2011-03-11T08:24:00.000-08:00

C.A.R. places open letter ad in top California newspapers, calls for short sale reform

LOS ANGELES (March 10) – In an effort to bring attention to the broken and ineffective short sale process and galvanize industry leaders to help resolve the issue, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today has placed an open letter advertisement in California’s seven largest daily newspapers, calling on lenders and industry regulators to streamline and improve the short sale process.

The letter, placed in a full-page ad in today’s Los Angeles Times, San Francisco Chronicle, San Jose Mercury News, Sacramento Bee, San Diego Union-Tribune, Bakersfield Californian, and Fresno Bee cites that more than 640,000 Californians have lost their homes during the past three years.

“With the number of homeowners who owe more than their mortgage is worth hovering at 30 percent, experts predict there will be many more foreclosures in 2011 and 2012,” said C.A.R. President Beth L. Peerce, under whose signature the letter was written. “Unless we take immediate, aggressive action to assist these homeowners, any meaningful recovery in the housing market and overall economy will continue to be delayed.”

C.A.R. advocates that short sales can play an important role in California’s economic recovery by accelerating the pace of home sales and reducing the inventory of bank-owned homes on the market. “Homebuyers who can qualify for a mortgage at today’s low interest rates also are able to purchase a home at below-market prices. Banks get a nonperforming asset off their books and avoid the headaches associated with disposing of assets they don’t want to own in the first place. Neighborhoods have fewer abandoned homes and local businesses have more customers with money to spend,” the missive states.

However, it goes on to note that many homeowners are unable to successfully negotiate a short sale because lenders’ short sale processes and procedures vary widely. “Poor and slow service by many banks and servicers have only exacerbated the problem. Increasing the number of closed short sales by speeding up and streamlining the short sale process is one important way we can help California families avoid foreclosure and move our economy closer to recovery.”

C.A.R. has been taking steps to enable more families to arrange a short sale. It has appointed two distinct task forces to help address this issue. It recently advocated for improvements to short sale guidelines established under the federal Home Affordable Foreclosure Alternative (HAFA) program and has met with major banks, U.S. Treasury officials, and other industry leaders to urge them to standardize processes.

“But we can’t do it alone,” said Peerce. “That’s why we’re focusing the spotlight on short sales and calling on regulators, elected officials, nonprofits, business organizations, companies, and individuals with a stake in California’s economic future to resolve this issue and others that get in the way of a recovery.”

View the open letter.

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 more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

2008 Home Buyer Tax Credit…Its Pay Back Time!

2011-02-25T09:01:00.000-08:00

Notice:

Did you purchase a home in 2008…(Agents, did you sell a home to your buyer clients in 2008)? If the $7500 first time home buyer tax credit was used to purchase the home…its payback time. Unlike the buyer ‘credits’ that came in 2009 and extended into 2010 the 2008 $7500 credit was in essence a loan. Now, that loan is due.

For many people who purchased a home for the first time in 2008, it’s payback time.

It sounded like a great deal: become a first-time homebuyer and pocket up to $7,500 in a tax credit. But if you bought that house in 2008 and received the credit, you’re required to start paying it back – now.

That’s because the credit was actually an interest-free loan provided by the government to stimulate a near-dead housing market. Unlike the homebuyer credits of 2009 and 2010, this one must be paid back over 15 years beginning with this year’s tax return.

For someone who got $7,500, that’s $500 a year.

“This is not a freebie,” said Jackie Perlman, a tax analyst at H&R Block’s Tax Institute.

The 2008 credit was available to qualified homebuyers who purchased after April 8, 2008, through the end of that year. The IRS has sent letters reminding folks who fall into this category. Many have been caught off-guard. They either forgot that the credit was a loan, or believed the loan had been forgiven as Congress subsequently passed different versions of the homebuyer credit that did not require a payback.

“I had one client who called me in a slight panic,” said Jonathan Horn, a certified public accountant. “People are confused.”

If you got the credit and have sold your house or it is no longer your primary residence, the total amount you owe is due on the return for the year those events took place, with some exceptions.

You can choose to accelerate your payments. While the loan is interest-free, some might want to pay it back sooner rather than later.

“A loan is still something hanging over your head,” Perlman said.

“Some people will say, ‘Let me get this over with.’"

submitted by Tim Harris

Short Sale Story

2011-01-24T10:35:00.000-08:00

A family of 4 living in placer county, had a 4 bdrm 3 bath typical neighborhood home was seeking a loan modification. They went through the loan modification process for over 5 months were denied and they submitted again.

Once they went through the Loan Modification program again, they were accepted with the following conditions...
Make 3 payments of 1250.00
upon receiving the 3rd payment the terms of your loan will be finalized and you will be notified of your new payment.

Well, 3 months went by they made the payment on time and they received their finalized payment. It was 1750.00. They absolutely freaked out and called me.

By talking to this family prior to doing the loan modification we created a plan and absolute goals as to what they can and can't afford. The 1750 was not in their range and the lender would not reduce the monthly payment. So we proceeded on to discussing short sales and foreclosure, which was the best option for the family.

Here are the circumstances:
2 loans
first loan - never refinanced
second loan - HELOC or cash out

ANSWER:
In this situation the best option is Short sale - so we can eliminate a deficiency from the 2nd lender.

If you have circumstances that you are unsure about fell free to contact me, I would be happy to develop your plan with you.

Treasury Department Amends HAFA Program to Increase Borrower Eligibility

2011-01-18T10:39:00.000-08:00

Call me ASAP - You can benefit greatly from this. Call me today to get the most recent updates.
916.663.6623

On December 28, 2010, the Treasury Department released an update to the Home Affordable Foreclosure Alternatives Program (HAFA). The changes will increase the number of eligible borrowers who may participate in the program and should expedite approvals:

(1) A borrower's reason for relocation no longer needs to be connected to employment nor be of a certain distance from the property. Borrowers may have moved up to 12 months before certain dates in the HAFA process but may not have purchased another home.
(2) Servicers are not required to determine if the borrower's total monthly mortgage payment exceeds 31% of gross income. Borrowers will still be required to show a hardship.
(3) Servicers are now required to communicate approval, disapproval, or a counter offer no later than 30 calendar days after receiving an (i) executed sales contract, (ii) Alternative Request for Approval of Short Sale, and (iii) a signed Hardship Affidavit.
(4) If an unsolicited borrower requests HAFA, the servicer has 30 calendar days to determine the borrower's eligibility and, if eligible, send the borrower the Short Sale Agreement.
(5) HAFA will no longer impose a 6% cap on payments to each subordinate mortgage/lien holder. The $6,000 aggregate limit is still in effect.

The update also clarifies vendors of the servicer may not be paid from the real estate commission. Servicers must implement the changes by February 1, 2011.

NO Foreclosures over the holidays

2010-12-10T14:18:00.000-08:00

Homeowners, Quick Lesson: the people you deal with may not be the people that call the shots. The lender that you pay may NOT be the investor, they are 2 different entities. So call your lender, the same people you have been talking to, and ask them 1) Who is my investor? 2) are you postponing my auction date? See the article below for information regarding Fannie & Freddie Owned Loans (this would be the investor).

This is from Realtor Magazine - Source CNN Money, Les Christie - 12/3/2010

Fannie Mae & Freddie Mac are freezing all foreclosure evictions on the mortgage loans they own or back from December 20 through January 3.

Anthony Renzi, Executive VP of SF portfolio Management at Freddie Mac says, "if the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holiday."

Abandon Wells

2010-12-10T09:33:00.000-08:00

A little quickie -
Did you know that there are approximately 750,000 water wells scattered throughout the state of California and some are abandoned. "Natural Hazard Disclosure" I had no idea there were so many...

Foreclosure Story

2010-12-03T06:18:00.001-08:00

OK, here is a conversation I had with Larry. Because of 1 person he foreclosed. Please talk to a CPA, Attorney, HUD and a Realtor before you choose to go foreclosure. EVERY SITUATION IS DIFFERENT - I have done over 400 short sales and not one has been the same.

Larry received a letter Mid July
July 30 - Lisa Welsh - How is everything going?

August 17 - Larry - I received a letter I have yet to open it. I will soon.

August 18 - Lisa Welsh - Don't wait to Long to read the letter, from the NOD (Notice of Default) date you have 111 days before the auction date. I would like to have at least 45 days to work with you and come up with a plan.

Sept - Lisa Welsh - Checking in to see how things are going.

October - Lisa Welsh - Hi Larry, did you read the letter?

November 1 - Lisa Welsh - Just checking in to see how things are going. Let me know. Thanks

December 1 - Larry - Hello Lisa, the house was foreclosed on. My accountant told me just let it go so I did. The bank held an auction and ended up buying it back because nobody else bid on it. It really sucks but what can you do. Sorry we didn't talk about short sell I was just done with all the crap I went through trying to modify the loan. I appreciate your interest in trying to help. You seem like someone that would have made the process easy. Good luck with all that you do there.

December 2 - Lisa Welsh - Larry, that is a bummer - did your accountant tell you that a foreclosure takes up to 250 points off your credit score, and you cannot purchase a house for 3 years for an FHA loan and 5 years for a conventional? Also, depending on what you do it could affect your employment. Another thing to check is your insurance, if they pull credit your rates will go up. As far as taxes go - the IRS told me that it doesn't matter if you foreclose or short sale the consequences are the same. I wish you well, thanks for updating me.

HOMEOWNERS - always check with more than one source before making any major decision. When you buy a house, you talk with a mortgage person, realtor, CPA so why wouldn't you do that when you foreclose or loose your home. Here are some other people you can call.

PEOPLE TO TALK TO:
CPA, Realtor, Attorney (2), Financial Consultant, HUD, IRS, FTB

THINGS TO CONSIDER:
Insurance Rates, Future Purchasing Power, Employment- If you work with $, security or have a license, Credit, to name a few.

Anyone you talk to should be able to give you an idea of what could happen with the things to consider or at least tell you where to go to find out.

My prayers are with everyone out there, it will NOT get any easier.

When Hope is Not Enough

2010-12-01T15:33:00.000-08:00

I was working out this morning reading a magazine on the elliptical and saw a sign on a cup that said "When Hope is Not Enough". It stuck with me, then when I got home my husband and I sat down to read from Tabletalk, a Christian based study guide, and guess what the study was about... "When Hope is Not Enough". So I decided to share it here. Below is the first paragraph of the study.

"Hope is that one non-physical quality without which abundant life is finally impossible. Take away a man's livelihood and he will press on, doing what he can to find work, as long as he has HOPE that right job opportunity is out there. Let a woman's friends and family abandon her and she will not give up on all relationships as long as she has hope that things will get better. Destroy the hope of either, however, and they will descend into nihilism, suffering its dreadful consequences." Tabletalk Sept. 2010.

Wow! I have worked with over 400 people who have had mortgage woes and had to make a decision to do a short sale, loan modification or even foreclose; and they were paralyzed with fear, guilt, heartache and anger. We would talk for several weeks sometimes months before some would move forward.

Well, I want to tell anyone that is having any kind of mortgage issue, that Hope is not enough, you need knowledge to go with it. Knowledge of your options, Knowledge of a plan, Knowledge of how to execute that plan. Now, there is hope. Don't be afraid to take a step of asking questions, no one can eat you, just make sure you ask the right person. Don't feel guilty or angry about the situation, it is what it is get empowered not angry.

I would like to offer you the knowledge and HOPE that can move you forward. As I said before I have worked with 100's of people who have had to make this same decision.

"In the midst of trouble and suffering, it can be difficult to believe that the Lord knows exactly what He is doing. So often it is easier to despair, believing that God has abandoned us and that He will not keep His promise to work all things together for the good of His children (Rom. 8:28). But our Father is sovereign, and He is working for our ultimate good and for the advance of His Kingdom even when things seem darkest to us." Tabletalk Sept. 2010

God Bless

Protection from banks - SB 1178 & SB 931

2010-08-24T10:41:00.000-07:00

I was reading the Sacramento Bee and discovered a great article on Friday, August 20, 2010 in "Our Region". The article talks about 2 new senate bills that are going through their process SB 1178 & SB 931. SB 931, will cover refinanced first-lien loans after a short sale. Currently, if the lender "reserves" the right to pursue deficiency then there is a possibility that you will be responsible for the difference of what the home is worth and what it was sold for. For example:

250,000 - The home was purchased for, and refinanced a year later.
150,000 - The home is WORTH today - SOLD
______
100,000 - Deficiency amount - Since you refinanced you are responsible unless the lender gives you a "FULL RELEASE"

So SB 931 is a good thing, it will encourage more homeowners to seek out short sales which is better than a foreclosure. It essentially makes it harder for the lenders that do approve short sales, to go after the homeowners or investors who bought a 1 - 4 unit dwelling as an investment.

Regarding, SB 1178, affects SOME refinanced first lien loans that go to foreclosure, but NOT all. This is limited to those who simply refinanced to a lower interest rate, not those that took cash out.

These 2 bills protect those that were not aware that they were surrendering the protection they had with a purchase money loan.

FHA Launches Short REFI Opportunity For Underwater Homeowners

2010-08-16T06:40:00.000-07:00

FHA Launches Short REFI Opportunity For Underwater Homeowners

What an opportunity, finally they realize that not everyone wants to do a loan modification, short sale or go into foreclosure. Read on, I wonder how many homeowners will qualify! If you are upside down, do you really want to keep your home? Will the market ever come back like it did? Does it matter that 50% of the homeowners will NEVER own their home? So many questions to think about.

I am counseling a few people on how to handle their mortgage and providing them with information and resourses. I have one person who is 250,000 underwater and doesn't want to loose their home, which I can completely understand. He looked into refinancing - he was underwater to far and he didn't make enough, tried a loan modification - he didn't quealify because he made to much, so they told him to do a short sale. He said this is not what he wanted and that he just needed a little repreave from the high mortgage. Well now this homeowner has another option, but what if this doesn't work? What then?

What happens in 4 or 5 years when he wants to move? I doubt he will be able to sell his home for what it is worth, how long will we stay in a Short Sale market? Who knows, only time will tell.

Blessings on all of you who are trying to find your way in this market. If you need any advice or someone to listen to your situation and share all the options available to you, give me a call.

How to have a great Garage Sale

2010-08-07T08:32:00.001-07:00

Like anything else, great garage sales take work. But the benefits often out weight the time devoted to making the event successful.

1) Look Everywhere - if your going to have a garage sale, you might as well have a garage sale. Look in the attic, garage, closets and under you bed, if you are thinking of replacing something - sell it!

2) spread the news - Consider placing ads in the local news paper, Craig's list on Friday, call your local Realtor, post flyer's in your local businesses tell your neighbors. If you are doing signs make them big and bold - the bigger the better.

3) Get ORGANIZED - curb appeal is important. Display wares attractively, any large items put in the back in the front, use colored tables hang your cloths and make everything accessible. Categorize your items, small appliances, kitchen, toys, etc.

4) PRICE is RIGHT - Keep in mind that people are looking for bargains, but if the item is clean and usable you can probably bump up the price a bit. Also, remember these are items you don't want so consider anything you get to be gravy. If you are selling books, make a sign all books 25 cents. If you are selling appliances, make sure they work and have an extension cord ready so people can try it out. You can also try to bundle items, sell 5 CDs for 1.00 and have the prepundled.

5) Have CHANGE - you will need fives, ones and change - lots of change. I wouldn't accept checks, that is my personal opinion.

6) Call 2 days ahead to your favorite charity and schedule a pick up.

Then sit back and count your cash. Enjoy and good luck.

Discount of the Month

2010-08-05T17:09:00.000-07:00

I've decided to give a bonus to my readers, clients, neighbors and friends. Check here every month for a new Discount. In return, send me a referral or 2 :)!!!

Obama & housing

2010-08-02T06:00:00.000-07:00

The housing market has NOT recovered YET and hasn't even started. I copied this article below so you can read what the government is trying to do. It doesn't really say much except that government it trying to do something, they are not sure what but something. So far the government has allowed banks, Freddie and Fannie to become Property Managers - YES, you heard me! They forclose and Rent back to those that are already Tenants, and profit.

By demanding that the lenders review all files for loan modification, they have created a monsters. This is what people are doing - I've experienced it, just so they don't have to pay the mortgage. They will do the loan mod and get rejected then start the short sale process, we are at 1.5 years now at not paying. Then the lender sends them a letter saying they qualify for a loan modification, and cancel the short sale and start the process all over again. HMMMMMM...is this helping???

OBAMA ADMINISTRATION ANNOUNCES CONFERENCE ON HOUSING FINANCE REFORM
“Conference on the Future of Housing Finance” set for August 17
WASHINGTON – Today, the Obama Administration announced expanded opportunities for public engagement on the future of our nation’s housing finance system, including Fannie Mae and Freddie Mac. These events, which will include a major conference in Washington, D.C., will help provide critical public input as the Administration continues its work developing a comprehensive housing finance reform proposal for delivery to Congress by January 2011.

“The future of our housing finance system is critical not only to our economic recovery, but also to millions of American homeowners in every corner of our country,” said Treasury Secretary Tim Geithner. “Now is the time to build on the foundation we laid with the historic Wall Street Reform legislation President Obama signed last week and aggressively move forward to improve our nation’s housing finance system. The Obama Administration is committed to delivering a comprehensive reform proposal that protects taxpayers, institutes tough oversight, restores the long-term health of our housing market, and strengthens our nation’s economic recovery.”

“The Obama Administration is committed to engaging stakeholders and the public as we consider proposals for reforming the housing finance system,” said U.S. Housing and Urban Development Secretary Shaun Donovan. “The need for reform is clear and we want to listen to a wide range of views as we chart a course to a more robust and stable housing market that works for the benefit of the American people.”

In the months ahead, the Administration will continue to gather input from a broad cross-section of stakeholders through a variety of events. On August 17, the Obama Administration will host a Conference on the Future of Housing Finance in Washington D.C. at the Treasury Department. This event will bring together leading academic experts, consumer and community organizations, industry groups, market participants, and other stakeholders for an open discussion about housing finance reform.

The Obama Administration has already begun the work of developing proposals for reforming our nation’s system of housing finance. In early 2010, Secretaries Geithner and Donovan delivered testimony before Congress on the Obama Administration’s ongoing work in this area, and the broad principles that would guide those efforts.

In April 2010, Treasury and HUD issued a set of questions for public comment on the future of the housing finance system, which received more than 300 responses from a broad cross-section of consumer groups, industry groups, market participants, members of the public, think tanks, and other stakeholders. These responses will help provide additional input and perspective as the Obama Administration moves forward to develop its comprehensive reform proposal. To view these responses to the questions for public comment, please visit: www.hud.gov and espanol.hud.gov.

Short Sale Misconceptions

2010-07-21T16:46:00.000-07:00

OK I have heard soooo much about short sales from people lately that are not true. This is why you do not listen to friends who have done short sales or family members who read things on the Internet. If you are considering a short sale go to the people who know.
Real Estate Attorney
CPA
Realtor
Interview at least 2 or 3 of each. Please include me in the realtor part :)!!

Misconceptions:
1) If i do a short sale I will be responsible for the taxes.
1a) Ummm hello, you will be responsible for taxed either with a short sale or foreclosure. THE DIFFERENCE: short sale you control your sales price foreclosure they sell it at what ever they want - meaning the lower the price the greater the tax implication.

2) short sale will ruin my credit.
2a) NOOOO! The 30/60/90 day lates ruin your credit not the short sale. THE DIFFERENCE: ACT of foreclosure (sell at auction) minimum of 100 to 300 points off your FICO; ACT OF Selling your property - maybe 50 points.

3) I don't care about my credit so it doesn't matter
3a) Ok so you don't care about your credit, do you care about any of these?
- Insurance Rates
- Security Jobs, bank job, anything to do with money job.
- Purchasing power
A foreclosure will have a negative effect on all the above. If you don't care about any of those well Foreclosure here you come.

4) Last but not least my favorite, my attorney told me to foreclose
4a) get a new attorney!

Stratigic Walk Away

2010-06-16T07:17:00.000-07:00

I have heard many people who are experiencing the upside down market say "this is a business decision, it just doesn't make sense to keep the house. I'm going to let it foreclose!" My answer to that is...

Did you do any research?
Have you talk to an attorney?
Have you talked to your CPA?
Have you talked to a financial consultant?
Have you talked to a credit specialist?
Do you have a recourse or non recourse loan?
Do you have a 2nd or an equity line of credit?
Do you know the ramification of your loan?

I not what part of walking away is strategic? I looked up strategic planning and this is the definition: "planning for good business: the planning of all the activities of a business to ensure competitive advantage and profitability." I ask you, what party of "I'm foreclosing" is strategic.

If you want to create a plan to walk away from your house have an idea as to what you want in 2 to 5 years. Here are some questions to ask your self:

Do you plan on purchasing in the next 2 - 5 years?
Does your job require pulling a credit report?
Do you deal with money within your job?
Will you be responsible for the deficient amount? (the money from what you owe to what it foreclosed at)
Does you insurance company pull credit?

If you have no idea what the answer is to half of these questions, you need to call me so I can give you some background. If you choose to just WALK AWAY without a plan - I'll be praying for you!

Real Estate Agents

2010-05-06T08:05:00.000-07:00

I have this house on the market and I have commission listed as I usually do. This agent calls me and asks"Is there is any more commission to be had?" I asked her what house she was referring to she told me and I said "well, let me tell you about the house to see if your clients would be interested or not." She proceeded to say "well if the commission is only xx% then I am not interested in showing them this house."

I said "I don't understand, isn't your job to do what the clients want regardless of what you get?" She laughed and hung up on me.

I have to ask the general population? Do you run into this a lot? Are most agents this way? I'm a Real Estate Broker and if that was my agent, I'd fire her.

Our Job as Real Estate Agents is to get you the best deal possible, find you the perfect home for your family, and protect you through out the transaction. There is more to it but this is the gist of it. As a REALTOR we have an additional set of ethics that we have to follow. So when you talk to your agent, be sure to interview them and be sure that they fit with your personality.

If you are buying or selling, blessing on your adventure.

Realtor or Agent? What is the Difference?

2010-02-05T08:09:00.000-08:00

I have run into many homeowners that do not know the difference between a Real Estate Agent and a REALTOR.

Here is an excerpt from Steve Goddard, 2010 President of the CALIFORNIA ASSOCIATION OF REALTORS®

"There are more than half a million licensed real estate agents in California, there are only 168,000 REALTORS® who voluntarily agree to subscribe to a strict Code of Ethics, and are members of their local, state, and national associations of REALTORS®."

INTERVIEW YOUR AGENT - the “EXPERT”:

2009-12-22T14:36:00.000-08:00

INTERVIEW YOUR AGENT - the “EXPERT”:
1) Has your experience been as a buyers agent or a selling agent over your career?
2) How long have you been NEGOTIATING with the lenders?
3) Do you negotiate or do you have a company negotiate for you?
4) Are you in control of my paperwork or is the 3rd party?
5) What are your personal numbers, how many short sales have you personally done? Now what are your Agencies numbers and how many agents does your office have?
6) Do you have any referrals to a tax attorney, bankruptcy attorney, experienced CPA?
7) What should I expect at the end, what are the possible outcomes besides foreclosure?
The list can go on but this should give you a good idea of how much of an expert they are.

Pay For Loan Modifications?

2009-03-31T03:29:00.000-07:00

Loan Modifications are one of the HOTTEST Real Estate sectors today. Everyone wants a piece. Well let me tell you what I have experienced and heard from several people.

A woman from Sacramento called and said "I paid 2500, that I didn't have, to a company in Texas to do a loan modification for me. I signed their contract, sent them a cashiers check and got nothing. They wouldn't return my calls, they never contacted my bank, they just stole money I didn't have."

A man called our office and said he is facing a foreclosure date in 2 weeks. "You have to help me, I paid a local company to do a loan modification $2,000, they said 'Money Back Guarantee'. I explained what I can afford and they said OK we can do that for you no problem. Well, they contacted my lender to do a loan modification, worked the numbers and my payments came back higher. Unfortunately, I didn't read the fine print"

Another fellow was contacted by a Real Estate Agent, saying lets list the house and do a loan modification at the same time. Well she go an offer before working the loan mod because the commission was higher.

Personally, I have spoken with 100s of people over the past several years and not once, have I heard a good story. OK maybe once! The point of this story is that you can do a loan modification yourself. You need time, organization and patience.

Call our office to get free information on how to do a Loan Mod yourself. Save the money!!! Or I will post that information here if requested.

Real Estate Blog Invitation

2009-02-27T07:09:00.000-08:00

Wow, what a market we have going on - I wish I had a chrystal ball. So many people underwater and angry because they have been trying to pay their mortgage and stay afloat and then there are those that are walking away or getting assistance from the government. I have been the Real Estate Industry for 4 years as an investor, buying and working short sales. I loved it so much I got my real estate license. Everyone has a different situation therefore their options are all different. I'd like to hear from you regarding the following questions, answer your questions or just hear your complaints!
How are the lenders treating everyone these days?
Where are you getting information from?
Are the lenders agreeing to Work something out?
What are the terms? Is it perminant or temporary?

What a piece of paper can do

2009-02-26T18:17:00.001-08:00

I entered the Real Estate biz as an investor and many people looked at me as scum, or taking advantage of people. So I decided to get my Real Estate License and now people ask me questions and for my advice, it's crazy. My knowledge is no different, I've been working short sales for 4 years, but now that I have my license I am considered worthy I guess.

Your Property Connection

Big company Vs. Small Company

**CONSUMER ALERT** FRAUD WARNING REGARDING LAWSUIT MARKETERS

Go Away Pests

Keep Backyard Pests from Eating Your Greens

7 Gardening Mistakes to Avoid

Short Sales - Do you Qualify?

HOA and Short Sales

CAR - Letter on Short Sales.

Short Sale Reform

2008 Home Buyer Tax Credit…Its Pay Back Time!

Short Sale Story

Treasury Department Amends HAFA Program to Increase Borrower Eligibility

NO Foreclosures over the holidays

Abandon Wells

Foreclosure Story

When Hope is Not Enough

Protection from banks - SB 1178 & SB 931

FHA Launches Short REFI Opportunity For Underwater Homeowners

How to have a great Garage Sale

Discount of the Month

Obama & housing

Short Sale Misconceptions

Stratigic Walk Away

Real Estate Agents

Realtor or Agent? What is the Difference?

INTERVIEW YOUR AGENT - the “EXPERT”:

Pay For Loan Modifications?

Real Estate Blog Invitation

What a piece of paper can do

CONSUMER ALERT FRAUD WARNING REGARDING LAWSUIT MARKETERS