Home Sales Up in US but Down in CA - Lenders Partially to Blame
October 27, 2010
National home sales were up 10% this September according to the National Association of Realtors. Some factors contributing to this growth are low mortgage rates and high affordability, home prices are averaging 22% less of where they were five years ago. Affordability has been influenced by the weakness in home buying activity. September’s home sales are still down 19.1 % from the same period last year and demand for homes has decreased since the homebuyer tax credit expired last April.
However, California hasn’t experienced this national upswing in sales and the downward trend continues to be a problem. Buyers already have concerns about foreclosure reversals and lenders have already limited the number investors due to putting limits on how many properties they can purchase. Wouldn’t it be better to have a strong buyer with 25% down than a high risk FHA buyer at 3.5% down? This perpetuates the problem only causing more defaults. To make matters worse, many lenders are increasing their demands for short sale purchase prices, often demanding prices tens of thousands of dollars over the prevailing local assessed value. This is not only a disturbing trend to short sale homeowners and homebuyers but to the local communities affected. When lenders demand unreasonable prices in a weak market they discourage what few buyers there are, allowing properties, often vacant, to sit for months or even years. It is these types of practices that encourage the increase of city violations, HOA penalty fees, theft, vandalism and vagrant squatters, resulting in a further decrease in local property values.
Foreclosures - Suspended or Expedited? Depends on Who You Ask
October 8, 2010
On October 7, 2010, Barack Obama rejected the Interstate Recognition of Notarizations Act, which would require courts to accept documents that have been notarized in another state. Many are calling for a moratorium on foreclosures, stating banks have reclaimed homes on fraudulent documentation. Just last week, Bank of America, JPMorgan Chase and GMAC announced they were suspending thousands of foreclosures due to inaccurate handling of documents. It is estimated that there are documentation problems in 80 percent of currently pending foreclosures.
Just when it seems the government and banks are beginning to act responsibly, Wells Fargo announced they will cease to delay foreclosure proceedings. Wells Fargo cited mortgage investors, including Fannie Mae and Freddie Mac, as the reason for this policy change. Which could mean, other banks will soon follow. This means an active short sale will no longer be an acceptable reason to prevent foreclosure proceedings. For those facing foreclosure on a Wells Fargo loan this means you must act swiftly to complete a short sale or the clock will run out. Unless Fannie Mae and Freddie Mac also act responsibly, all of this is just one step forward and two steps back.
New California Short Sale Deficiency Law
October 6, 2010
As of January 1, 2011, the first position lender will not be permitted to obtain a deficiency judgment against the seller after a short sale. The short sale approval letter and acceptance of the funds will constitute payment in full and discharge of the deficiency. However, these new changes will not apply to refinanced loans. If you are considering a short sale or would like to learn more feel free to 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.
California DRE Reports Increased Mortgage Fraud
September 14, 2010
The California Department of Real Estate and the Department of Financial Institutions are warning about increased reports of short-sale mortgage fraud activity. Some of the fraud related activity includes short-sale negotiators requiring buyers to pay their fee, fees being paid outside of escrow and unlicensed negotiators. At Homes In Stockton no buyer is ever asked to pay a short sale negotiation fee and no fees are ever paid “off the HUD”. If you have any questions about California short sales or are a buyer or seller considering purchasing or selling a short sale in the Stockton area feel free to 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.
Posted via email from www.Homes-In-Stockton.com Posterous
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.
Stockton, CA, Short Sale Stockton Home for Sale & Stockton Real Estate, 3026 English Oak Cir, Stockton, CA, 95209.
August 23, 2010
For information on this and all the Stockton homes for sale visit www.Homes-In-Stockton.com!
Nice Stockton Short Sale! Well cared for home in gated community. Large corner lot. Priced to sell. Kitchen with tile counters and dining bar. Low maintenance yards.
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.
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.
Posted via email from www.Homes-In-Stockton.com Posterous
Stockton, CA, Short Sale Stockton Home for Sale & Stockton Real Estate, 7309 Camellia Lane, Stockton, CA, 95207
August 3, 2010
For information on this and all the Stockton homes for sale visit www.Homes-In-Stockton.com!
Stockton short sale. Stockton home for sale located in Lincoln School District! Here is the perfect home for a couple starting out or a small family complete with a white picket fence. Hardwood Floors in Living Room and one bedroom. Updated touches throughout. Great buy.!
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.
