Here is a great interview with CNN‘s Gerri Willis. She answers some of the many questions that new home-buyers have during this process. Again if you need help, please do not hesitate to ask. Myself and my team are here to help!
With the decreasing home values, and large inventory in today’s housing market, people find themeselves having to settle for bids that are far less than they had expected to receive when selling their homes. As you know, I love searching the internet for ways I can either help you sell your home, or just give you some information pertaining to the housing market. So I have found this fun little video that shows you how to increase the value of your home with a little bit of hard work. CAUTION: Always consult with a licensed contractor before attempting any modifications to your home!
Kaiser Permanente raked in recognition Wednesday as 16 of its facilities were named on the list of 65 Top Hospitals in the United States, including Kaiser Roseville Medical Center.
The 2010 Leapfrog Top Hospitals rewards medical centers for outstanding success is such areas as infection rates, safety practices, mortality rates for common procedures and measures of efficiency. The 65 facilities were selected from a field of nearly 1,200 hospitals around the country.
Dr. Robert Pearl, executive director and CEO of The Permanente Medical Group, said in a press release that Kaiser uses technically advanced 21st century medical care.
“As a result we have lowered the chances of our members dying from heart disease 30 percent below the community around us, reduced mortality for patients admitted with sepsis by 50 percent, and dramatically reduced the risk of our members dying from cancer compared to the rest of the nation,” Pearl said.
Founded in 1945, Kaiser Permanente currently serves 8.6 million members in nine states and the District of Columbia, including more than 3.2 million patients in northern California.
“We received the award for meeting stringent criteria for providing high-quality care safely and efficiently,” said Sandy Sharon, chief operating officer for Kaiser Roseville Medical Center. “Our success in the areas of preventing infection, safety practices and mortality rates for common procedures was recognized. We were also recognized for our vast electronic medical record system, which makes vital health care information available instantly.”
The Leapfrog Group is a coalition of public and private purchasers of employee health coverage founded in 2000 to work for improvements in health care safety, quality and affordability. The independent advocacy group works with a broad range of partners, including hospitals and insurers.
The annual survey is the only voluntary effort of its kind. The 2010 list includes university and other teaching hospitals, children’s hospitals and community hospitals in rural, suburban and urban settings.
The selection is based on the results of the Leapfrog Group’s national survey that measures hospitals’ performance in patient safety and quality.
“This award is in direct alignment with our mission to improve the health of our members and the communities we serve, and it is a milestone in our journey to continuously improve care,” Sharon said.
story by Sena Christian of Roseville Press Tribune
VETERANS EARN CASH BACK ON HOME PURCHASES
And a donation will be made to “Operation Mom” on all qualifying home sales and purchases
SACRAMENTO, CA- November 26, 2010 – Local Realtor, Marsha Dashiell is participating in a wonderful new program in an effort to honor our veterans and families of veterans. All veterans will receive a part of the realtor commission as a cash back rebate at the close of escrow. Ms. Dashiell feels that this is her best opportunity to help those that have helped our country the most. As well as the veterans receiving a cash rebate, there will be a donation made to “Operation Mom,” which is a military support group whose primary mission is to provide a place where families of those serving our country can find support, encouragement, solace, and be with others that share their heart. They also provide ‘Little Touch of Home’ packages to our troops serving worldwide and have done so since 2001
Veterans who purchase or sell a property receive the following:
0 – 99,999 = $500 back to client and donate $250 to Operation Mom
100,000 – 149,999 = $750 back to client and donate $375 to Operation Mom
150,000 – 249,999 = $1200 back to client and 600 to operation Mom
250k to 399,999 = $1500 back to client and $750 to operation Mom
400k and up = $2000 to client and $1000 to Operation Mom
When asked about her new program, Ms Dashiell replied, “I feel that our veterans have sacrificed a huge portion of their lives, health, safety, and overall well-being in order to provide our citizens with the way of life we so often take for granted. It is our duty as recipients of this lifestyle to give back to our veterans in whichever manner we possibly can. So, I figured the best opportunity I have to give back to our veterans is to turn over a part of the commission I receive as a realtor, on every home sale in which a veteran is the seller or the buyer.”
Ms. Dashiell also stated, “‘Operation Mom’ is an amazing organization that provides a place of comfort for the families of veterans who are all going through a similar situation. I felt that I could help more veterans than just those who are capable of purchasing or selling a home, by donating another portion of my commissions to an organization that is dedicated to the families of veterans.”
Cash back will be in the form of a check at the close of escrow.
All loans are subject to lender approval. Participation in the program requires the use of Ms. Marsha Dashiell as the realtor, and Mr. Roland Benson as the lender.
Call for more details! 916-580-5400
This is great information that I wanted to share with you that I found. Foreclosure filings are down as well, but for how long. This doesnt mean things are getting better. This just means there are a lot of people that are in need of help. This is just delaying the inevitable. We need to do our parts as lenders and Real Estate agents to change this horrible situation. Make sure everyone is well-qualified! If you need to short-sale your home, then lets do it! Do not fall victim to these loan modification schemes. Sale your home and save your credit and start over when the time permits!
Would love to hear your comments!
The headline foreclosure news in October was the suspension of foreclosures by a handful of lenders, after certain procedures were called into question. While the announcements initially focused on 23 judicial foreclosure states outside of our coverage area, Ally (GMAC), PNC and Bank of Americaall later announced that they would be suspending foreclosures nationally. The week after the announcements, we saw evidence of those suspensions on Tuesday, October 12; after the Monday holiday. Ally restarted foreclosures just a week later on October 18; but neither Bank of America nor PNC have resumed foreclosure sales as of November 15th.
Foreclosure sales dropped dramatically across our coverage area as a result, though slight declines by other lenders would have likely led to a drop in October’s foreclosure sales regardless. It should be noted that ForeclosureRadar monitors foreclosure sales at the time of the foreclosure auction, providing far more current data than other services which track Trustee’s Deeds that are filed weeks later.
Foreclosure filings were less impacted by the announced suspensions. Filings by Bank of America dropped slightly just after their announcement, but began picking up the following week. PNC appears to have largely stopped new filings, but they typically represent less than 2 percent of filings, so their impact was minimal. Despite the limited impact of announced suspensions, Notices of Default filings were generally down. For State-by-State details, review the table below or click the State links for complete foreclosure data at the State, County, City and ZIP Code levels.
“Despite a short-term impact to foreclosure sales, the latest foreclosure scandal will likely lead to little more than a new scam perpetrated on those who have already lost their home,” says Sean O’Toole, CEO and Founder of ForeclosureRadar.com. “Much like the cottage industry of loan modification consultants that took up-front fees and provided little in return, we are now seeing consultants promising to overturn foreclosure sales, despite any experience in actually doing so.”
Arizona
Notice of Trustee Sale filings dropped 12.9 percent in October from September, and were down 15.0 percent from the prior year. After a steady rise last year, the October inventory of Bank Owned (REO) properties was flat, which was likely helped by the 27.0 percent drop in foreclosures that went Back to the Bank. Properties Sold to a 3rd Party (typically investors), also dropped 26.5 percent in October from the prior month, as foreclosure sales were impacted by the foreclosure suspensions.
View all Arizona stats by state, county, city or ZIP
California
Preforeclosure inventories dropped 11.8 percent in October from the prior month, largely thanks to a 16.8 percent drop in Notice of Default filings. Foreclosure suspensions led to a 29.9 percent decline in foreclosure sales that went Back to Bank (REO), and a 26.4 percent decline in those Sold to 3rd Parties. Despite the significant decline in new Bank Owned (REO) properties, Bank Owned (REO) inventories actually rose, as REO resales continued to slow.
View all California stats by state, county, city or ZIP
Nevada
After a dramatic rise of 39.2 percent in September, foreclosure sales dropped 36.6 percent in October. Thus the impact of suspensions simply brought overall foreclosure sales back to typical levels. That said, the 41.5 percent drop in sales to 3rd Parties (typically investors), brought 3rd Party purchases down to their lowest level since December 2009. Foreclosure filings were also down from September to October, with Notice of Default filings down 13.5 percent and Notice of Trustee Sale filings down 24.8 percent.
View all Nevada stats by state, county, city or ZIP
Oregon
Foreclosure activity was down across the board in Oregon. Notice of Default filings dropped 14.8 percent and Notice of Trustee Sale filings declined a significant 35.8 percent. Foreclosure sales were also down, with properties going Back to the Bank (REO) down 38.2 percent and those Sold to 3rd Parties down 36.5 percent. While new foreclosure activity decreased, the number of foreclosures that were in process also decreased, with Cancellations declining 15.6 percent. This left the inventory of foreclosures Scheduled for Sale only down 4.3 percent, despite the dramatic drop in new Notice’s of Trustee Sale.
View all Oregon stats by state, county, city or ZIP
Washington
Washington was the least impacted by foreclosure suspensions of any state that we cover, with foreclosure sales down just 8.2 percent. Foreclosure sales that went Back to the Bank (REO) declined 10.6 percent, while those Sold to 3rd Parites partially offset that decline with an increase of 21.1 percent. Washington’s Cancellations jumped 49.7 percent from September to October; this bucked the trend among other states that had declining Cancellations for months. Notice of Trustee Sale filings in Washington state increased 1.8 percent.
Short Sale Before Bankruptcy
For debtors who can’t meet their monthly payments and who are facing foreclosure, short sale can be an option. When the proceeds of a debtor’s real estate sale fall short of the balance owed on the property’s mortgage, it is called a short sale. A creditor can agree to do this if the debtor can no longer make the monthly mortgage payments on the property and the creditor decides that a moderate loss on the property is better than risking the debtor’s bankruptcy. In many cases, creditors will agree to a short sale, before bankruptcy is the only option left. The debtor will remain obligated to repay the remaining balance of the loan, unless otherwise agreed by both creditor and debtor. It is evident that the debtor may still not be able to meet his monthly payments, depending on how high the remaining balance is and the rest of his financial situation, and still may have to file for bankruptcy. Creditors can obtain a debtor’s credit report and evaluate the possibility of bankruptcy. This can cause them to instigate short sale before bankruptcy, because if the debtor files for bankruptcy, the creditor is not assured repayment of the monies owed. A short sale before bankruptcy can ensure the creditor’s recovery of the bulk of the loan, and make the repayment of the remaining balance easier for the debtor to repay without filing for bankruptcy.
Short Sale vs. Bankruptcy
When you’re considering short sale vs. bankruptcy, it’s important to evaluate just how the results of the short sale will affect your financial situation. You need to find out what the remaining balance on the loan will be after the short sale, and how feasible it is given your current financial situation that you can make your monthly payments. In the matter of short sale vs. bankruptcy, if the resulting balance after a short sale is too high for your debt-income ratio, you will have to file for bankruptcy after all. Another aspect to consider in the question of short sale vs. bankruptcy is that for most people, a short sale will eliminate their one valuable asset, i.e. their home, which makes a chapter 13 bankruptcy impossible. In contrast, if you file for chapter 13 bankruptcy before a short sale, you are usually allowed to keep your home if a repayment plan is deemed feasible by the court. Both short sale and bankruptcy are complicated legal processes and for debtors considering short sale vs. bankruptcy, it is advisable to retain the services of a qualified bankruptcy attorney to investigate your financial situation and explain to you what your options are.
We have all seen the commercials! “Stop Foreclosure Now!” “Call me, I can help!”
Remember the days when we would see hundreds of commercials for refinancing? Where are they now? Why are we not refinancing? I mean we have record rates. Rates, that we have never seen before. Even during the big refinance boom, rates were not this low. Today as I post this blog, rates are at 4.26% for a 30 year fixed. So why are we not refinancing to save our homes? Check out this article that I found written by Jack Guttentag. Maybe this will help explain.
While mortgage interest rates are at their lowest levels in decades, millions of mortgages that carry interest rates of 6% to 9% or even higher are not being refinanced. The reasons for this involve Fannie Mae and Freddie Mac, the two secondary market giants now in government conservatorships.
The problem is perhaps best seen through the eyes of borrowers who are unable to refinance. Each unsuccessful borrower cited below is representative of a sizeable group of such borrowers.
Adam was turned down for a refinance because he did not meet the new tougher underwriting and pricing requirements set by the agencies in their standard programs. His credit score, which was acceptable when he got his loan before the crisis, is not high enough to meet the new requirements.
Excessive Restrictions
It clearly was appropriate for the agencies to correct the excessively liberal rules that had prevailed during the go-go years, which contributed to the financial crisis. However, they have reacted to their excessive liberality before the crisis by becoming excessively restrictive in the aftermath. Their underwriting and pricing structures are designed to maximize their net earnings, as if they were still private firms. Fannie and Freddie are now part of the government and should set their underwriting rules and pricing adjustments not to maximize net revenue but to break even over a long time horizon.
Barbara is one of many homeowners who bought during the go-go years and who now owes more than what their houses are worth — she is “underwater”. She applied for a loan under the Home Affordable Refinance Program (HARP), which was designed to make refinancing possible for underwater borrowers who are current on their payments and whose loans are owned by Fannie or Freddie. Barbara is ineligible, however, because she is too far underwater. Her loan-to-value (LTV) ratio is 130%, and the agencies have set a 125% maximum.
A maximum LTV in the HARP programs cuts out a sizeable segment of the potential market, for no good reason. The agencies are already on the hook for any losses on high LTV loans, and a rate reduction can only reduce the probability that a default will occur that would trigger the loss. Indeed, the reduction in expected loss from a rate-reducing refinance is larger on a 150% LTV than on a 125% LTV. The default rate has to fall only half as much on a 150% loan as on a 125% loan to generate the same reduction in expected loss.
Fannie and Freddie should scrap the LTV maximum in the HARP program, for which there is no rational reason, thereby also eliminating the need for appraisals on HARP loans.
Giving Up the Search
Charley was turned down for a refinance under the HARP program, although his LTV was only 120%, which made him eligible under agency rules. Nonetheless, the lenders Charley approached would not make the loan. They told him their maximum LTV was 105%, and some said that it was 95%. Charley could have refinanced if he knew where to go, but he didn’t and he gave up the search.
I did a quick and dirty survey and found that HARP loans above 105% are not available from brokers or from smaller lenders who sell to wholesalers who in turn sell to the agencies. HARP loans exceeding 105% are only available from some of the lenders who sell directly to the agencies.
Freddie Mac has a list of HARP lenders here, but it is extremely difficult to find. If Fannie has one, I could not find it. The Freddie list has 27 lenders, 14 of which do 125% loans, of which only four have a wide multi-state presence: Aimloan.com, SunTrust Mortgage, Quicken Loans, and RBC Bank.
Fannie and Freddie ought to do a better job of informing potential borrowers how to find a lender who will make 125% HARP loans, and they should review their policies that have discouraged broader lender participation.
Out-of-Luck Borrowers
Doris’s situation was the same as Charley’s, including an LTV of 120% — with one difference. Doris’s existing loan carries mortgage insurance (MI). The lenders who turned her down told her that the mortgage insurer had to agree to shift the MI policy to the new loan, but would not do so in her case.
Under HARP rules, if there is no MI on the existing loan, none is required on the new loan. If there was MI on the old loan, as in Doris’s case, it will be carried forward on the new loan, provided the PMI firm agrees. But if the current LTV exceeds 105%, they won’t agree unless the new loan is being made by the existing servicer. Doris was not aware that only the lender servicing her loan can shift the mortgage insurance policy from the existing loan to a new one.
Fannie and Freddie ought to inform potential HARP borrowers who have mortgage insurance and LTVs greater than 105% that they can only refinance with their current lender, and they should examine whether there is anything they can do to remove the PMI roadblock.
Ethan is an underwater borrower in good standing whose loan is not owned by Fannie or Freddie. His only possibility of a refinance is the new FHA program, but that program requires the existing lender to write down the balance to 97.75% of house value. Since Ethan is making timely payments, the lender has very little incentive to do that.
Ethan had no say in who ended up owning his loan; from his perspective it was a coin toss that came up tails and made him ineligible for HARP. The out-of-luck group to which Ethan belongs includes a large number of subprime borrowers who meet their obligations faithfully while paying rates up to 9% and even higher.
There is no good reason why such borrowers have to be left entirely out in the cold. While including these borrowers in HARP would expose Fannie and Freddie to risks they did not have before, the agencies could set payment performance requirements and charge risk premiums large enough to protect taxpayers while still offering many of these borrowers substantial relief.
Treasury should have the agencies develop a HARP1 program covering loans they do not now own that would be subject to underwriting rules and price adjustments consistent with the government breaking even.
As you may or may not know by now, I am constantly searching for ways to help people achieve their American dream of home-ownership. I have just recently stumbled across this great program and felt obligated to share this with you guys. For more information, please call me at 916-580-5400.
The CHF Platinum Program
This grant program provides down payment assistance for low-to-moderate income individuals and
families purchasing a home. Homebuyers can receive up to 3% of their first mortgage to be used
as a down payment and/or closing costs.
! Primary residence, owner occupied
! Does not have to be a first-time homebuyer
! Minimum 620 credit score
! Income limits apply
! FHA loan only
! 30-year fixed rate
! Grant funds can not exceed 3% of the first mortgage
! Grant funds can be used for down payment or closing costs
Less than 90 day flips are not permitted with this program.
Home Purchase Example
(reflects new FHA changes effective October 4, 2010)
Sales Price
FHA 1st Mortgage
FHA Minimum Down Payment
CHF Platinum Grant
Buyer’s Down Payment
$325,000
$316,761
$11,375
$9,503
$1,872
96.5% LTV (includes UFMIP)
3.5% of Sales Price
3.0% of 1st Mortgage
Contact me today to learn more about this assistance program.
Please call for more information
Roland Benson
Sales Manager
916 746 8412
Direct
916 768 1578
Mobile
877 863 6075
Fax
NMLS ID 353144
roland.benson@imortgage.com
imortgage
3013 Douglas Blvd., #205
Roseville CA 95661
Rates, terms, and availability of programs are subject to change without notice.
Licensed by the Department of Corporations CRMLA #4130969
Everyday, I dig through this endless array of information we call the internet. I dig to find articles, tips, and advice that I can not only utilize for myself, but to also share with all of you. Here is one that I found very interesting that I discovered on Yahoo, tips to increase the seller’s property’s value. I found the tips to be very interesting and some of them not too challenging. Let me know what you think.
Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, sellers can significantly increase their chance of attracting qualified buyers willing to pay the asking price.
Some tips to achieve a positive impact on value are:
Perceived size impacts value, even more so than actual square footage. Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.
Vacancy increases sale-ability. Property is easier to show and easier to sell, and quicker to take possession of when it is vacant at the time it is offered for sale. Evidence of problems to take possession of the property — such as encroachments, or tenants who wont allow buyer tours — negatively impact value. Vacancy also helps the buyer walk through the property imagining ownership. Sellers should remove personal trinkets and family pictures as well as being conveniently absent during a buyer tour.
Cosmetics are important.
Fresh paint will always add more value than it costs.
Clean or new carpet/flooring adds more value than it costs.
Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
If you can, add some colorful flowers and new sod.
Take care of the obvious! The spot on the ceiling from the roof leak takes thousands of dollars from the perceived value and the offer price.
Condition affects value. Do a seller’s home inspection to identify and fix the problem BEFORE closing. No point holding up your check a few extra days; plus a failed buyer’s inspection could cost you the sale. Buyers will often bargain down your asking price to accomodate for property condition and repairs.
If you can, remodel/update the kitchen and master bathroom. These two areas have a big impact on home buying decisions.
Strategic renovations impact value and your bottom line. Don’t spend more money to renovate the place than you can recapture in value on the sales price.
“SHORT SALE” – This terminolgy can be seen everywhere, especially in today’s fragile housing market. Never before, has the word “short sale” been in the real estate launguage as much as it has been recently. The problem is, not too many homeowners know exactly what it means and how it may benefit them.
Here is a great explanation of what a “short sale” is and what exactly is involved in the process. I hope this helps.
The term “Short Sale” means to sell the bank short of what they are owed. As an example take a $100k house with payments of say $700.00 per month. Once this house goes into foreclosure the process can take 12 to 18 months just to get the house back in the banks name. The bank has to hire an attorney etc… to file the foreclosure so lets look at the numbers to understand the short sale process:
Original Balance: $100,000.00
While in foreclosure the bank doesn’t collect payments so 18 Months Payments lost 18 x 750.00 = $13500.00
The cost of an attorney easily will cost $20,000
Lost interest, fees etc….$2500.00
I haven’t included all of the banks cost here but we are already up to about $136,000.00. Add to the fact that this process can take over a year and the bank still wont have their money all they will have is a vacant property that can still take a long time to sell if it isn’t in perfect condition. And this problem is really exacerbated if the value has gone backwards which could put them $50k or more in the hole Once you understand this then you begin to understand the short sale process.
Now back to our $100k example. The bank knows they are about to lose $50k in fees, lost opportunity costs etc…. so they put the property up for short sale. The bank realistically in this situation will probably take any offer over $80k as it would actually be saving them money even though on paper they are losing $20k plus. To have the $80k now is a blessing rather than take a $50k hit later. This is the very essence of short sales and in today’s market banks are willing to do this.
The reason you need a bank to approve is they have to run the numbers like i just did. They will take the offer they have an calculate current losses with your offer and then estimate losses if they hold onto the property and look at which one nets them more. If the short sale offer nets them more now than they will get in the long run you will likely be accepted.
Once the bank accepts your short sale it is now on you to close. They don”t care about your down payment or anything of the sort all they care about is you cashing them out. You will still need to have either all cash or a loan all setup before they will even start the short sale process with you as this process costs them money as well and they only want to entertain offers with those that are qualified.
If you have any further questions, or would like to have a FREE consultation, please feel free to call me or email me.
