Mother & Daughter Blog: June 2009

Just a reminder! The word in the air is that it is time.... (June is almost over... July is coming) -----> Banks will be or are already releasing more of the foreclosures that they have in inventory. 

Although there is also the possibility that banks will cooperate with the new programs that Obama has introduced to help homeowners keep their home and also this is set in place to help slow down the number of foreclosures. See:

What has changed with Short Sales?

Between now and then... Look out for your Loan Modification letter - it is time sensitive --- if you do not get one CALL YOUR LENDER! Do not miss this opportunity to AVOID FORECLOSURE!

Doing nothing is not an option.... It's a bad mistake if you are having mortgage problems.

However, should be one the lucky agents that get a truckload of REOs (Bank Owned) properties, do not forget to maintain your properties in a manner to help the communities stay in a upbeat condition and help the market by maintaining your properties in a manner that will help the market instead of continue to bring it down. 

Here are just some of the responsibilities an agent has - in order to maintain a Bank Owned Property: 

• Floors swept and mopped
• Carpets vacuumed
• Walls, ceilings and corners should be free of cobwebs
• All light fixtures should have working light bulbs
• Sinks countertops and cabinets wiped down
• Vacuum out cabinets
• Replace air filters
• All appliances cleaned (interior and exterior). If inoperable, remove.
• Windows washed and window ledges cleaned
• Mirrors cleaned
• Bathtubs, showers and commodes cleaned
• Vents cleaned and free of dust
• Ceiling fans cleaned
• Clean fireplace, if applicable
• Property should smell clean, air fresheners can be used
• Gutters and down spouts cleaned
• Sweep front porch
• Power wash exterior, if needed

In additon, agent will need to keep the property up by:

• Watering the lawn regularly
• Cut the lawn regularly
• Dust the inside of the property
• Check again for cobwebs, pests - remove them
• May have to reclean the carpet if it is during rainy season, check for mud or foot trackings
• Turn on the utilities and pay the bill and wait for reimbursements
• Report to Asset Manager any damages, repairs needed and supervisor their repair
• and the list goes on.

You know some will say us agents have it easy.  I say to them take a look at this list and tell me it is easy being an agent! Wait! there's more:  Is it hard to spot a bank owned property in Stockton, CA? But I love it!

 

Check out our website and find tips for BUYERS and SELLERS - Find some valuable information on ( Short Sales, Bank Owned Properties, Latest Loan Modification programs - including Foreclosure Alternatives Program to help prevent Foreclosure). I work with my daughter (D'Adrea Davie) as the Mother and Daughter Real Estate Realty Team at Family Realty Group and we have the latest information for the Loan Modification program & FAS (Foreclosure Alternatives Program).

Our aggressive marketing plan includes on-line listing advertising.

• Mother and Daughter Realty Team Website
• Mother and Daughter Blog

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If you are thinking of Avoiding Foreclosure, Short Sale or Buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-543-0461 or email US (go to our website and email us).

I am not trying to be funny with this question!  You see an empty house, it has a sign in the window with the agent's name, sometimes there is a real estate sign -- sometimes not. Here in Stockton, CA and most of the larger cities in Northern California - there are so many vacant or distressed homes (about every 2/3 houses on a given block in some cases).  But no where do you see that it is a bank owned property.  So you have to ask.

Question:  Is it hard to spot a bank owned property - if yes, why?

Answer:  Some of larger banks do not allow advertising or signage marketing properties as Bank Owned, REO or Foreclosure.  This even includes the MLS, signs, riders that are on the property.  So you will have to continue to call the agent and ask if this is a bank owned property to be sure. 

                                                        O R

You can assume if it is not stated as a Short Sale on the MLS: Here are some other signs that the property must be bank owned:

• Yellow lawn - almost yellow, more yellow than green....
• Vacant no curtains
• Wild weeds in the front and on the side of the house
• Neighbors house is nicely maintained, green lawn and all or at least most of the weeds are pulled
• MLS states "as is" sale
• MLS states bank requires pre-approval by a named bank
• Property has a "coming soon" sign outside 
• That feel of there goes the neighborhood
• Listed on Craigslist
• You are in California - especially Stockton, CA where just about every other house is either in distress or it is already foreclosed.

Before your home is one of these, check with your lender and ask for a Loan Modification OR if you cannot afford the loan modification they offer or they don't give you a loan modification --->> you may have to do a Short Sale just to avoid getting a Foreclosure on your credit.  There is a new program that will streamline the process, offer you more options and opportunities to keep your or home or Short Sale with less hassles and stress.

 

 

This new program Foreclosure Alternatives Program is an extension of the Making Homes Affordable.  It is set up to help streamline the process in offering homeowners loan modification and if they cannot qualify for a loan modification, the lender/servicer will offer the homeowner the option of doing a short sale (3-12 months) and if that does not work they may offer the homeowner the option of signing over the Deed in lieu of foreclosure.

This program is good in that it does try to help homeowners.  Although it will not help keep homeowners in their homes, but if not allow them to use the other options.  The main point here is Do not ignore the letters and end up in foreclosure when you could have avoided it!

Check out these posts and gather more information on these Alternatives to Foreclosures:

• What has changed with Short Sales?
• Between now and then... Look out for your Loan Modification letter - it is time sensitive --- if you do not get one CALL YOUR LENDER! Do not miss this opportunity to AVOID FORECLOSURE!
• Doing nothing is not an option.... It's a bad mistake if you are having mortgage problems.

Check out our website and find tips for BUYERS and SELLERS - Find some valuable information on ( Short Sales, Bank Owned Properties, Latest Loan Modification programs - including Foreclosure Alternatives Program to help prevent Foreclosure). I work with my daughter (D'Adrea Davie) as the Mother and Daughter Real Estate Realty Team at Family Realty Group and we have the latest information for the Loan Modification program & FAS (Foreclosure Alternatives Program).

Our aggressive marketing plan includes on-line listing advertising.

• Mother and Daughter Realty Team Website
• Mother and Daughter Blog

↑ Grab this Headline Animator

If you are thinking of Avoiding Foreclosure, Short Sale or Buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-543-0461 or email US (go to our website and email us).

Check out our website and find tips for BUYERS and SELLERS - Find some valuable information on ( Short Sales, Bank Owned Properties, Latest Loan Modification programs - including Foreclosure Alternatives Program to help prevent Foreclosure). I work with my daughter (D'Adrea Davie) as the Mother and Daughter Real Estate Realty Team at Family Realty Group and we have the latest information for the Loan Modification program & FAS (Foreclosure Alternatives Program).

Our aggressive marketing plan includes on-line listing advertising. 

•  Mother and Daughter Realty Team Website 
•  Mother and Daughter Blog 

↑ Grab this Headline Animator

If you are thinking of Avoiding Foreclosure, Short Sale or Buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-543-0461 or email US (go to our website and email us).

Some will say that the new programs are not helping many.  I say every little bit helps.  If we keep getting programs that end up helping 10-20% here and there, it will all add up to helping some homeowners.

My point here is to get it out of your mind that if you do nothing it will just go away.  Nope not true.  If you do nothing.... You will get a foreclosure.  You will get your home taken from you!

If you at least call your lender and ask for a loan modification you just may find that they are now ready to offer you the loan modification.  Things are changing so rapidly and new programs are being introduced all the time so don't just assume that there is no help out there for you.  Do your homework and research as many options as you can.

If the loan modification that is offered to you doesn't seem like it will be much help, try it anyway.  Why not?  You get your trial period to see if you can do it and who knows what will change during that time?  Just don't give up.

If you have no income, of course the loan modification is not going to work.  In that case, you take the next step, ask for the short sale option (this will give you 3-and up to 12 months to sell your home) this equals more time in your home!  And if short does not work after a honest and good effort, ask your lender to let you do a DIL (Deed in Lieu) of foreclosure.  This can come with a $1500 incentive for relocation - which is better than getting nothing more than a foreclosure and not a single dime!

There are programs that maybe able to help you keep your home --->>>

• MHA (Making Homes Affordable) and
• FAP (Foreclosure Alternatives Program)

So doing nothing is not an option and if you chose to do nothing you will be making a big mistake.

Call 866-543-0461 if you need assistance.

WEBSITE: http://www.motheranddaughterrealtyteam.com

• Want to purchase a REO property? Want to know what properties I have to sell?
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide 
• For a FREE MARKET EVALUATION of your home  
• Need a Short Sale Specialist?   

Take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our aggressive marketing plan includes on-line listing advertising. 

 

↑ Grab this Headline Animator

If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-750-8282 or email at US.

Is this strategy working? Price property low, pull in multiple and higher offers.  Is this a way to see what the buyers are willing and able to purchase?  Does competition make buyers more anxious?  How long will it take before the buyers see what is going on and hold back to stop it?

When you stop and think about what impact is holding back on properties that have been foreclosed and is now owned by the banks.... At first, you think nothing but after checking our areas like Hayward, CA you see that the demand is overweighing the supply and those are fighting words!

Buyer Agents are having a hard time landing a property with the offers they are presenting in Hayward.  It has nothing much to do with the amount you offer as it does the competition of the other agent's offer.

I just had a property listed in Hayward, that is just the average Hayward (Southland area) home with no upgrades or anything special, but you would not believe how many calls, email inquiries and offers we received on that property!  It shocked me.

Getting back to why is this happening?  It is because the banks are holding back on releasing properties that they have foreclosed on and that makes the supply low in Hayward and it is not matching the demand.  It appears that there are no available bank owned properties in Hayward and other areas.... But really there is going to be a flood of bank owned properties coming your way real soon.

I believe the purpose of this is to help bring the market back up. Price them low, pull in a flood of multiple offers and see what people are really willing and able to pay for these properties.  It is a false bubble - and I am not sure that is enough to bring the market back up.

Buyers.... Get your pre-approvals and go on and buy now so you will not look up and see that the market prices have increased and is headed upward before you can get that deal on a property.

Call 866-543-0461 if you need an agent to represent you in a purchase of a home.

WEBSITE: http://www.motheranddaughterrealtyteam.com

• Want to purchase a REO property? Want to know what properties I have to sell?
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide 
• For a FREE MARKET EVALUATION of your home  
• Need a Short Sale Specialist?   

Take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our aggressive marketing plan includes on-line listing advertising. 

 

↑ Grab this Headline Animator

If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-750-8282 or email at US.

Due to the foreclosure crisis, a number of programs have been added in order to help the situation.  At first, the programs pointed towards helping the financial institutions rather than the homeowners. I don't know if that was on purpose but it sure did take a while for programs to get right down to the gut of the suffering and try to help the homeowners.

Here is a breakdown:

1.  February 2009: Making Homes Affordable (MHA) was introduced.

2.  March 2009: MHA guidelines for loan modifications & refinancing were set

3.  April 2009: Additional details related to the Second Lien Program and strengthening HOPE for Homeowners.  Fourteen (14) servicers including the five (5) largest financial institutions signed on (signed contracts) and begin modifications and refinancing under MHA.

4.  May 2009: Both Foreclosure Alternatives and Home Price Decline Protection Incentives were introduced.

5.  June 15 2009: Clarity of how the "Foreclosure Moratorium" really works.  At first, when this moratorium was announced it sounded like there would be a "hold on all foreclosures" for 90 days.  Actually, what this really means is if your financial institution is NOT on board with the MHA/FAP programs (loan modifications) they have 90 days to get on board and during that time they cannot foreclosure on their homeowners.  HOWEVER, if your financial institution is already signed up on the loan modification program, its foreclosures as usual.

What do you do??

1.  Check with your financial institution and see if they are already signed up for loan modifications under the MHA/FAP program or not.  If they are and you are already in the pre-foreclosure process, you will need to keep them on the line long enough to find out if  you qualify for a loan modification.  You must take the time to ask about the programs and try to get whatever they tell you in a letter for your protection.

For more information about the Foreclosure Alternatives Program (FAP) read this:

Stay tuned.... I will have more on these programs and how you can avoid foreclosure.

WEBSITE: http://www.motheranddaughterrealtyteam.com

• Need a Short Sale Specialist?   
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide 
• For a FREE MARKET EVALUATION of your home  

Take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our aggressive marketing plan includes on-line listing advertising. 

↑ Grab this Headline Animator

If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-750-8282 or email at US.

The term Cash for Keys is not new.  Over the last 2 couple of years, we have seen a great deal of cash for keys offered to occupants that still living in the foreclosed properties.  This offer is in lieu of eviction. "Cash for keys" may be one situation where it is a win-win situation for both the mortgage lenders and the homeowners.

Advantage of the Cash for Keys program: 

• Homeowners get money to help the relocate
• Incentive for homeowner to get out of to get out of their homes quickly with minimal repercussion
• Incentive to bank/mortgage holders to be a part of the FAP program

Now with the FAP (Foreclosure Alternative Program), Cash for Keys is an incentive for homeowners that are in the position of:

• Not being able to qualify for a loan modification
• Not being able to do a Short Sale
• Bank offering them Deed in lieu of foreclosure * please note: there are situations where the bank will not give the cash for keys offer to the homeowner, but will still offer the deed in lieu of.

How does it work?  The "cash for keys" program is technically known as a deed-in-lieu which allows the bank to take a property back from a delinquent homeowner who can no longer afford to make their house payment. To take advantage of the Foreclosure Alternative Program, the home owner must not qualify for a mortgage modification or a short sale.

The "Target" homeowners:

• who are unemployed
• upside down on their home values
• or going through a critical event such as divorce, death, future job loss, etc.

How can a Homeowner get Cash for Keys?   First the homeowner has to denied the loan modification and Short Sale due to the fact that they are not qualified for either.  The bank will then offer the homeowner the deed-in-lieu program.  The bank pays the homeowner an incentive (usually $1,000 to $5,000)to move out of the home on a specific date and leave the home in good condition. In doing so, the bank agrees not to charge the homeowner back for the difference in what it eventually sells for and what they owe.

Are there any glitches in this option?  Yes.  A second mortgage or other debt on the home can cause a lender not to offer "cash for keys". The owner of the second mortgage or debt must agree to give up all their interest in the property. Under the Federal Alternative Program, the second mortgage holder may also receive up to $1,000 when they waive their rights.

WEBSITE: http://www.motheranddaughterrealtyteam.com

• Want to purchase a REO property? Want to know what properties I have to sell?
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide 
• For a FREE MARKET EVALUATION of your home  
• Need a Short Sale Specialist?   

Take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our aggressive marketing plan includes on-line listing advertising. 

↑ Grab this Headline Animator

If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-750-8282 or email at US.

The market is not balanced right now, but there are a couple of things to keep in mind if you are a buyer that is waiting on yet more of a price decrease.  While you may see a small drop in prices for a little longer, keep your eye on the interest rates too.  Just looking at the last week of May 2009 - the interest rate increased from .50% to 1.00% as fixed-income investors demanded more for their money.  This result is in just one week!

What is the old saying?  You either pay it this way or you pay it that way?  Keep your eye on what is most important to you.  What can you live with and what can't you live without.  If you want lower interest rates, you probably should get in the moving forward mode and start your search for that new home.  If you do not care about the interest rate but want to pay less for the property... you may not get that either by procrastinating too long.  The market is unforgiving and it is not going wait too much longer because a great change is going to come.   Interest rate is a good indicator.

These low rates are artificial! Historically, interest rates have been above 6.00%. And any rate obtained below this number is a great deal, especially on homes with price tags from 2003! Waiting for homes to decrease another 10%, might cost you a higher interest rate for 30-year fix!

WEBSITE: http://www.motheranddaughterrealtyteam.com

• Want to purchase a REO property? Want to know what properties I have to sell?
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide 
• For a FREE MARKET EVALUATION of your home  
• Need a Short Sale Specialist?   

Take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our aggressive marketing plan includes on-line listing advertising. 

↑ Grab this Headline Animator

If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-750-8282 or email at US.

Act Now and get in on the money!

Neighborhood Stabilization Program  ~   $2 billion has been allocated to the Neighborhood Stabilization Program (NSP), which is in addition to prior allocations. Be on the lookout for announcements of participating cities / counties that are among the selected areas that will get some of these funds.

NSP is an extension of the prior Community Development Block Grant.  Realtors and investors can team with municipalities to purchase foreclosed homes in blighted areas and then resell those homes to families at or below 120% of the area median income.  Limit is that 25% of the funds must be used for families below 50% of the area income.

The City of Stockton and County of San Joaquin has started to offer a purchase assistance financing to eligible low- and moderate- income homebuyers seeking to purchase a foreclosed home in a NSP Priority Area in these areas. The City of Stockton is proposing to use $12.1 million of NSP funds that have been allocated by HUD to acquire and repair foreclosed residences; to offer down payment and closing cost assistance to low- to moderate-income homebuyers; and to demolish blighted structures. HUD set income maximum at 120 percent of area median income.  In Stockton, that means $73,600 for a family of four.

Eligible Uses

NSP funds may be used for activities which include, but are not limited to:

• Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
• Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
• Establish land banks for foreclosed homes;
• Demolish blighted structures;
• Redevelop demolished or vacant properties

Requirements         How do you qualify for the NSP?

1.   Attend the necessary training (8 hr course)

2.   Buyer to get pre-qualified by a Participating Lender  (Must be a participating lender) 

3.   The property must be foreclosed

4.   Property must be vacant at time of listing

5.   The property can be any type of permanent residential dwelling unit, such as detached single family structures, townhouses, condominium units

6.   Properties must be appraised by a state certified residential or general appraiser. The appraisal must be done within 60 days of the final offer to purchase.

7.   When buying foreclosed homes from lenders or other mortgagees, the purchase price must be at a discount from the appraised value. HUD requires that the home buyer must seek the "maximum reasonable discount" from the seller. The minimum discount is 5% for each NSP property.

8.   Properties must be located within an NSP Priority Area. 

9.   Households whose incomes are at or below 120% of area median income are eligible for this program. The following chart shows the maximum income limits.

10. Home buyers must not presently have an ownership interest in any real property.

11. Home buyers must attend and complete an eight (8) hour Homebuyer Education Class certified by HUD that is taught by one of the program's approved home buyer education providers. (see the end of the blog)

12. Home buyers must occupy the property as their primary residence.

13. At its own expense, the program will inspect every property to be purchased under this program and determine if rehabilitation repairs are required. If repairs are required, the program can provide a loan up to $50,000 for those repairs. Homes requiring rehabilitation that is estimated to cost more than $50,000 are not eligible.