Archive for the 'Short Sales' Category
Loan Modification Success
Posted by Rachel LaMar, J.D. | Currently 1 Comment »
Many homeowners have been hit hard by the recent changes in the housing market. We all know someone who has been threatened with foreclosure or is fearful that they will lose their home due to interest rates resetting, job loss, illness or other factors.
Some homeowners took equity out of their homes in good times and with decreased values they now find that their homes are worth less than what they actually owe. All this fear has lead many to foreclosure, including intentional foreclosure or “walk aways.”
Whether it’s a friend, neighbor, family member or yourself facing this issue the fact is that it effects all of us by bringing down property values. The reality is that there are other options to foreclosure and walking away, including loan modification.
This option is getting a great deal of attention in the media right now due to the lenders’ panic to come up with solutions to foreclosure. The good news is that modifications are easier to get now than before, but you have to understand how to to approach this subject so that you can successfully work with the bank and possibly save your home.
The following information is from my book, Mortgage Walkaway Options. Let’s start with the basics. A loan modification occurs when there is a change in one or more of the terms of a loan, which reduces the loan amount and generally m
akes payments more affordable.
In simple terms, it means refinancing a loan to a lower amount. The lender and borrower must agree in writing to change the terms of the loan. Up until now many lenders didn’t want to speak with borrowers who had not yet defaulted on their loans.
This is because they had a plethora of active files sitting on the desks of their loss mitigation department already, and they were having trouble dealing with the ones who were in default and did not have the manpower to add more files that were not yet considered risky. Luckily that seems to be changing. There are a few recent regulations and announcements that will help you achieve a successful loan modification.
Firstly, if your first loan is with Bank of America or JP Morgan Chase you are in luck. B of A, now one of the largest lenders in the business, announced in October that it was going to begin review of all of its loans that were variable interest rate loans and option ARMs. Upon review, the lender plans to notify homeowners if they qualify for loan modification, and then to work with the homeowners toward resolution. Chase also announce it is putting a hold on foreclosures with the intent to work out modifications with qualified borrowers.
This news is HUGE for several reasons: one, it takes the burden off the homeowner to try for resolution with a lender who often does not have time nor manpower to help.
Two, the bank is actually being proactive in preventing more foreclosures, which will help many stay in their homes and eventually help the real estate market and likely induce other lenders to follow suit.
If your loan is with another lender who has not yet instituted such a policy, you can seek help under the newly enacted government plan, Hope for Homeowners. This legislation took effect October 1, 2008 and allows you to refinance your loan into a new 30-year fixed rate loan if you qualify.
Your loan will be based upon an appraisal of the CURRENT market value of your home, so if prices have gone down since you purchased your new loan payments will be based upon current values, making them much more affordable. 
This program requires you to contact the lender to initiate the process. There are important considerations you need to be aware of in regards to this program. For example, if you sell your home after the modification takes place the new lender will be entitled to a percentage of the gain on the property (appreciation and equity sharing). The amount changes over time.
Also, you will not be able to take out equity on your property after the change unless these second liens are directly related to property maintenance.
To understand fully the ramifications and qualifications under this legislation you can go to the website, www.MortgageWalkawayOptions.com and download my book, or you can feel free to call me and I will be happy to help you. My direct number is (760) 310-9466.
Most importantly, know your options in the face of foreclosure and educate yourself BEFORE taking any action. Right now is a great time to modify a loan, as there is a general consensus among lenders that this option benefits them the most (as does it benefit you, the homeowner).
Take advantage of the programs available to you so that you don’t have to lose your home or worry about an upcoming rate change. Just as important, you need to be in constant contact with your lender–keep a record of all correspondence and communications with your lender and be vigilant–keep calling.
If you are not having luck there are numerous counseling groups that can assist you. My favorite is HopeNow. They can be reached at (866)995-HOPE (4673). Best of luck to you!
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Related Posts: Contracts & Negotiations, Education, Financial news, Foreclosures, Free Foreclosure Lists, Home Loans, Homeowners, Mortgage News, Real Estate News, San Diego, Short Sales
San Diego Homes Under $200,000? - Get the Facts
Posted by Diane White | Currently 1 Comment »
Are there really homes in San Diego for under $200,000? Yes there are…over 2,700 of them! And they are located throughout the county.
In fact there are a number of “affordable” homes that under $300,000 (5,800) and an additional 4,400 between $300,000 and $500,000. Listed below are the number of homes available (single family residences detached and attached homes only) in different price ranges as of Friday, 10/24/2008.
Below $200,000
San Diego County: 2,709 Listings
562—Metro Area
226—North County Coastal
603—North County Inland/No East
536—East County
Below $300,000 ($200,000-$299,000)
San Diego County: 3,095 Listings
625—Metro Area
322—North County Coastal
821—North County Inland/No East
453—East County
Below $400,000 ($300,000-$399,000)
480—Metro Area
326—North County Coastal
761—North County Inland/No East
490—East County
Below $500,000 ($400,000-$499,000)
298—Metro Area
229—North County Coastal
555—North County Inland/No East
201—East County
Below$600,000 ($500,000-$599,000)
San Diego County: 1,189 Listings
225—Metro Area
224—North County Coastal
402—North County Inland/No East
115—East County
It may be the perfect time to get into your first home or to buy that investment propety you have always talked about doing. Because of the foreclosures and short sales, prices are down and interest rates are very low.
Contact me for more detailed information on a particular area in San Diego County.
Popularity: 55% [?]
Related Posts: Area Information, Area Statistics, Buyers, Condos & Townhomes, Find A Home, Foreclosures, Great Real Estate Deals, Interest Rates, Investment Properties, Market Trends, Picture Perfect San Diego, San Diego, Short Sales, Windermere
Foreclosure Lists - We’ll Give Them to you for FREE & Show You How to Use Them
Posted by Erica Vautier | Leave A Comment »
It’s no secret that the California Real Estate Market is saturated with Foreclosures. As we work our way through this unique economic situation buyers are given the rare opportunity to sift through lists of properties at drastically reduced prices.
Would you like to access up-to-date lists of foreclosures in your area? Well, then check out our Foreclosure Radar. This service will allow you to easily browse through the most current foreclosure lists available today.
Here you will find reliable information on properties in every phase of the foreclosure process. This includes preforeclosure (when a homeowner is given a notice that they are in default), auction (when the lender takes bids on foreclosed property in a public forum), and REO (or real estate owned, where the lender takes ownership of a property that fails to sell at auction).
You no longer have to scrape together scattered information to make informed decisions.
Just click here and start searching through our complimentary foreclosure lists.
But remember — buying a foreclosure is not as simple as buying other properties. There are additional processes, laws and regulations. We highly recommend you work with a real estate professional to guide you through this complex transaction.
Ready to get started?
- Learn more about California Foreclosure Process
- Read this quick summary of California Foreclosure Laws
- Watch video tutorials on How to Search for Foreclosures
- Start Your Search and get Free Foreclosure Lists
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Related Posts: Foreclosures, Free Foreclosure Lists, Investment Properties, Market Trends, Real Estate News, San Diego, Short Sales
Short Sales in San Diego County - Get the Facts
Posted by Diane White | Currently 1 Comment »
What are short sales? What is happening with the short sale market? Are they selling? Where are they? Here is the Statistics Report for the activity in the last 90 days on all homes, except for manufactured, in San Diego County. Statistics supplied courtesy of Sandicor.
San Diego County Short Sales
To summarize:
- There are currently 6,445 Active Listings. This is a little misleading because most short sales are kept in the active status, even after the seller has accepted an offer, until there is an formal acceptance by the lender(s).
- There are currently 1,778 short sales in the pending status, which means in escrow.
- There have been 4,109 that have closed escrow in the last 90 days.
What are they? Short sales are homes that are for sale and the seller’s loan(s) are more than what the property can sell for. They put it on the market in the hopes that the bank will take less than what they owe. This used to be a process that could take up to 6 months before the lender assigned a negotiator and many went into foreclosure before they ever had a chance to get it approved.
Most banks now have systems in place and as the report shows, they are closing successfully. In fact, most of the time there are multiple offers…you will note that the sales price to listing price is now 97% and average days on the market are down to 99.
Where are they? I did a search for some regions and note the following:
North County Coastal = Carmel Valley, Del Mar, Solana Beach, Encinitas, Carlsbad & Oceanside
- 738 Actives 200 Pending 186 Solds
North County Inland= Scripps Ranch, Rancho Bernardo/Penasquitos, Mira Mesa, Poway & Ramona
- 537 Actives 205 Pending 185 Solds
Metro Areas = Downtown, Hillcrest, North Park, Mission Valley, Clairemont, Tierrasanta & University City
- 1,096 Actives 329 Pending 283 Solds
South Bay = Bonita, Chula Vista & National City
- 1,727 Actives 339 Pending 159 Solds - by far the highest area
If you have stayed away from short sales, you might want to reconsider…many are selling before they become foreclosed on.
Click here to read my previous blog posts and let me know if there is something in particular you would like me to research.
Popularity: 100% [?]
Related Posts: Area Information, Area Statistics, Buyers, Cardiff, Carlsbad, Carmel Valley, Del Mar, Downtown, Encinitas, Financial news, Foreclosures, La Costa, Leucadia, Market Trends, Oceanside, Rancho Bernardo, Real Estate News, San Diego, Short Sales, Solana Beach
