Legal Chart Quick Reference for California Deficiency Judgments
August 26, 2010
The attached document provides a quick reference to assist distressed sellers in determining if a lender would have the right to collect on a deficiency resulting from foreclosure in the State of California. It is intended only for reference. I recommend strongly that a seller facing foreclosure or pursuing a short sale consult with an attorney and CPA. Pat Holkesvig & Your Home Team specialize in:
Stockton Short Sales,
Lodi Short Sales,
Lathrop Short Sales,
Manteca Short Sales,
Elk Grove Short Sales,
Mountain House Short Sales,
Tracy Short Sales,
Ripon Short Sales and
Tracy Short Sales.
If you have any real estate related questions please contact Pat Holkesvig at (209) 471-6516 or complete our Contact Form.
Could This Be The End of Short Sales?
August 12, 2010
Keep your eyes on the news August 17th when the Treasury will be holding a hearing regarding the future plans for Fannie Mae and Freddie Mac. It is rumored that the Obama administration is about to order the government-controlled lenders to forgive a portion of the mortgage debt for Americans who are underwater. If this were to happen, assumedly the short sale market would dry up and foreclosures would slow to a near stop. In theory, this would force the real estate market to regulate to a new normal. This could have a tremendous local impact considering the large percentage of short sales and foreclosures flooding the greater Stockton real estate market.
Â
Â
Posted via email from www.Homes-In-Stockton.com Posterous
The Impact of HR 5872 & 5891 on the Stockton Real Estate Market
August 12, 2010
HR 5872, which passed the House of Representatives last week, increases FHA’s commitment authority for its multifamily insurance programs by $5 billion for the remainder of the fiscal year. While HR 5891, which passed the House of Representatives July 30, will permit FHA to increase its single family annual premiums, raising the statutory cap from 0.55 percent to 1.55 percent. Essentially, HR 5872 saved the ability for FHA to issue commitments for the remainder of the current fiscal year. Although HR5891 will cost more money to the single family consumer, it is believed this increase will perpetuate FHAs ability to become self sustaining and help to stabilize the housing market. At this time it is unclear what specific impact these changes will have on the Stockton real estate market and the number of future Stockton short sales.
Â
Â
Posted via email from www.Homes-In-Stockton.com Posterous
HAMP & HAFA Foreclosure Alternatives for Central Valley Homeowners
July 28, 2010
If you are pursuing a short sale, you should have already inquired about the government’s Home Affordable Modification Program and/or the Home Affordable Foreclosure Alternatives options. If you haven’t done so already and would like to find out if you are eligible, you should contact your lender and inquire directly. You can also learn about the eligibility requirements at the following links HAMP http://makinghomeaffordable.gov or HAFA http://makinghomeaffordable.gov/hafa.html
For more information read  How new short sale rules can help you, call Pat Holkesvig & Your Home Team at 209.471.6516 or complete our Contact Us form.  Pat Holkesvig and Your Home Team are The Central Valley’s Short Sale Specialists. We process Stockton Short Sales, Elk Grove Short Sales, Lodi Short Sales, Lathrop Short Sales, Manteca Short Sales, Modesto Short Sales, Mountain House Short Sales and Tracy Short Sales.
Equator Launches New PRO Short Sale Software
July 14, 2010
Equator launched a new short sale and HAFA software for communication between lenders, real estate agents and borrowers. Intended for smaller firms, PRO Short Sale allows buyers and agents to negotiate terms quickly by automating every aspect of a short sale or deed-in-lieu transaction. Equator said the new software will meet regulatory demands and assist in managing the increasing short sale volume.
Banks Plan to Clear Books By Turning To Short Sales
February 18, 2010
Now short sales are growing at a faster rate than foreclosures and most economists expect the distressed home market to have a 5% increase in the number of short sales this coming year. That expectation combined with the fact that banks generally lose 20% more on a foreclosure than a short sale make it no surprise that banks such as Bank of America, Wells Fargo, JPMorgan Chase and Citigroup are scrambling to accommodate this inevitable shift in the market. Read more here US banks take hit to clear home loan books.
Banks Have No Control Over Collections Process
February 18, 2010
Having wored on numerous short sales, I have often wondered about the banks’ apparent lack of control over collection policies. This is especially true if the loan is a subordinate lien. The demands made of the sellers by these second liens are far beyond reasonable, even more so if the subordinate lien has already been charged off. Once a third party company takes over a loan, the treatment of the seller and the short sale process in general is horrific. Then it becomes magnified, because the third party company blames the bank for the ‘required’ unreasonable demands but the bank will say they no longer have any interest or authority over the file. So if neither company will claim a primary interest in the file, then who is responsible for all the required demands on the seller? Clearly somebody has an interest in the file. As awful as all of this may be, the following story  Bank  Screws Even Ex-Employees Of 21 Years On Mortgages reveals not only how heartless banks can be but also the lack of control over the collections process in general. Â
Housing Market Turnaround Up To Banks
February 18, 2010
People are buying up short sales and foreclosures at the expense of conventional sales and if the housing market is ever going to recover, the banks need to get short sales closed at a much quicker pace. The average short sale length in some communities has increased to 298 days and even up to a year in some cases. These long turnaround times discourage many potential short sale buyers as they turn to cheaper and quicker foreclosure options. These homes lingering as pending short sales in addition to the new short sales flooding the market has created a two-year supply of short sales on the market. At that rate, the first possible opportunity to see a market recovery wouldn’t be until 2012. However, if banks could improve the short sale approval times, much of that inventory would disappear. It seems like this would be simple and banks would be working toward this goal. Instead the banks are concentrating on foreclosures and selling them at much bigger discounts, devaluing properties across the board. It is no wonder realtors would rather wait for a property to foreclose reducing cost and closing time. So whether we like it or not, the banks are in control of the market and unless their actions change to improve the short sale procedures and stabilize the market, it will be a while before things recover.
