4.3 Million Foreclosure Victims Offered Independent Case Reviews With Focus On Proper Processes

While I’m not so sure I agree with the word “victims” in this article title I still think it holds some merit and deserves to be shared. So many people have either already been kicked out of their homes or are in the process of being given the boot. I agree that improper processes need to be identified and addressed.

Here is the article from yesterday’s NotaryBulletin presented by the National Notary Association.

In what is being considered the first meaningful response to the foreclosure crisis, the federal government has ordered 14 mortgage lenders involved in the “robo-signing” scandal to send letters to 4.3 million consumers who may have been victimized by foreclosure errors and misconduct, paving the way for a massive number of individual case reviews and potential compensation.

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Check out this scary satellite view of Tampa Bay FL foreclosures!

The national average is depressing enough at 1 in 46 homes being in foreclosure but things get even more bleak when you look at our situation here in Florida. Literally 1 out of every 20 homes in the Tampa Bay area is currently in foreclosure. On the below map the red dots show homes currently in foreclosure.

U.S. ‘Underwater’ Homeowners Increase to 28.6%, Zillow Reports

Nov. 8 (Bloomberg) — The number of U.S. homeowners who owe more than their properties are worth climbed in the third quarter as lenders repossessed fewer houses, Zillow Inc. said.

The share of borrowers with negative equity rose to 28.6 percent, up from 26.8 percent in the second quarter and 23.2 percent a year earlier, the real estate data provider said today. Last quarter’s portion was the biggest since Seattle- based Zillow began tracking the measure in the first quarter of 2009, when 22.3 percent of households were underwater.

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Housing survey shows link between consumer attitudes, experience

WASHINGTON – Nov. 4, 2011 – Fannie Mae’s third quarter National Housing Survey provides in-depth findings on attitudes of consumers who know of people in their area or neighborhood that have defaulted on their mortgage. This latest survey shows that those exposed to default have similar attitudes about buying a home as those who do not know people that have defaulted.

However, the survey also finds greater pessimism about the economy and personal finances among consumers who know defaulters.

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Wells Fargo: Government aid won’t help housing market

FORT LAUDERDALE, Fla. – Nov. 4, 2011 – The Obama administration’s plan to help more homeowners refinance underwater mortgages may be a big deal in South Florida, but the lifeline won’t have a significant effect on the nation’s housing market, Wells Fargo Securities predicts.

Nearly half of homeowners with mortgages in Broward and Palm Beach counties are underwater, according to research firm CoreLogic. They’re hoping an expansion of the Home Affordable Refinance Program will help them refinance at current interest rates and get them out from under burdensome mortgages.

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Obama challenged by RE/MAX broker

Statistics showing bank-owned and Short Sales sell more than normal listings

I’d like to share some interesting statistics with you all. I’ve selected to run these stats for the city of Clearwater, but just about any city in the Tampa Bay area will give you the same results.

Let’s start with the total number of homes in Active status. This gives us 685 single-family houses listed for sale in Clearwater, FL.

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I’m back after a brief computer nightmare

Several days ago I had a serious computer problem that forced me to bring my desktop system to the shop for diagnostics. Apparently a chip on one of the boards went bad and this caused a chain reaction resulting in a hole in the fabric of space time. I apologize to everyone for being away and not returning emails promptly. I was accessing Webmail on my wife’s laptop for the past few days and that antiquated machine is as slow as molasses.

Four days and $1,197 dollars later I’m back! Miss me?

The risks of renting your house instead of selling

No, this not a reenactment. This is the real deal. I took these photos earlier today of a client’s duplex. His tenant abandoned the unit late at night about a week ago.

The scary thing is there is sufficient evidence to support the idea that this tenant was actually living in the property in this condition. Clearly, the water and power had been turned off for a long time at this address. Millions of maggots are pouring out of the refrigerator and flies are swarming. Everywhere you look there is food rotting on counters, in cabinets and all over the floor.

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Buy, Close, Move In!: How to Navigate the New World of Real Estate

The rules have changed, but your dreams haven’t. You can buy the home you want—let award-winning real estate guru Ilyce Glink show you how!

With her books, syndicated newspaper and Internet columns, radio show, blog, Web site, and numerous media appearances, Ilyce Glink has become the go-to expert Americans rely on to help them successfully navigate the tricky world of real estate—a marketplace made even more complex today thanks to the Great Recession. Sure, there’s a maze of new regulations. Sure, it’s harder than ever to find a great deal or get the best loan. But you can do it. All it takes is a little expert advice from Ilyce.

Clear and concise, Buy, Close, Move In! cuts through confusing red tape to provide the essential inside information you need to make the best decisions, and answers commonly asked questions about every step of the process, including:

* Credit—from raising your score to identitifying theft protection
* Real estate investments—trends and opportunities
* Foreclosures, short sales, and auctions
* Appraisals, closing costs, and other fees
* Mortgages—fixed rate versus adjustable rate and other financing options

How long can you breathe underwater?

Inman News

Top 10 states with highest share of negative equity mortgages

1. Nevada (68 percent of 592,000 mortgages)
2. Arizona (50 percent of 1.3 million mortgages)
3. Florida (46 percent of 4.5 million mortgages)
4. Michigan (38 percent of 1.4 million mortgages)
5. California (33 percent of 6.9 million mortgages)
6. Georgia (28 percent of 1.6 million mortgages)
7. Idaho (24 percent of 243,000 mortgages)
8. Virginia (23 percent of 1.2 million mortgages)
9. Maryland (22 percent of 1.4 million mortgages)
10. Utah (20 percent of 470,000 mortgages)

Bending over backwards for buyers

It’s 2010 and the real estate market in the United States is still in turmoil. Nobody knows what the real long-term prognosis is for this troubled sector of the nation’s economy. Recent news shows us that home sales have now fallen for four straight months, hitting a record-low in February.

With all this uncertainty it is very important to figure out which factors in the equation you can control to some degree. As a home seller you need to realize just how precious and valuable each and every showing opportunity is. You can’t control the big picture, such as the economy or demand for real estate, but you can control the small picture, such as how well your home shows and how easy it is for buyers’ agents to show your home.

All too often sellers get asked to allow a showing on short notice or during inopportune times. Yes, this is annoying and frustrating. I get this. But there is an old idiom, “beggars can’t be choosers,” that really applies here. That buyer that calls 30 minutes before they want to see your house could very well be the buyer that steps up to the plate and makes an offer. Turning him or her away simply on principle because you’re upset they didn’t give you advanced warning of their arrival could backfire on you. That might have been the only buyer interested in your home.

Sometimes you have to swallow your pride and stifle your frustration. Allow that showing while you’re making dinner or watching a recording of the latest American Idol episode. Keep the goal in mind. You want to sell and you cannot sell without showings.

Fannie Mae to Rent Foreclosed Homes

Thousands of borrowers on the brink of foreclosure will soon have the option of renting their homes from Fannie Mae under a new program announced in early November.

Under the new “Deeds for Leases” program, Fannie Mae will allow borrowers facing foreclosure to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that, as part of the latest effort to help troubled borrowers while keeping a glut of foreclosed properties from hitting the housing market.

But the new government-sponsored program is unlikely to help many distressed homeowners. In the first half of the year, Fannie Mae repossessed 57,000 properties, compared to only 1,200 properties that were leased back to owners.

Fannie Mae has hired an outside management company to administer the program. To qualify, borrowers have to live in the home as their primary residence and prove they can afford the monthly rent. The rent cannot be more than 31 percent of their pretax income.

Source: The Associated Press

Mortgage Delinquencies Reach a Record High

About one in seven homeowners with a mortgage was at least one payment behind or in foreclosure in the third quarter of 2009, according to the Mortgage Bankers Association. This is up from about one in 10 a year ago and translates into about 5 million households that are delinquent.

The 14.4 percent rate in the third quarter was the highest rate since the MBA bagan reporting such data in 1972. driven by rising job losses, prime fixed-rate loans made to borrowers with good credit accounted for 33 percent of all new foreclosures in the third quarter, compared with 21 percent a year ago, the MBA said.

“Job losses continue to increase and drive up delinquencies and foreclosures,” said Jay Brinkman, the MBA’s chief economist. “Prime fixed-rate loans continue to represent the largest share of foreclosures started and the biggest driver of the increase in foreclosures. The outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve.

The MBA said loans backed by the Federal Housing Administration are also showing signs of trouble. More than 18 precent of FHA borrowers are at least one payment behind or in foreclosure. The association expects foreclosures to peak in 2011.

Source: Mortgage Bankers Association

What does mid score mean?

The middle score is used in mortgage lending by taking all three credit bureaus scores, in order from highest to lowest, and selecting the one in the middle.

Example: If your Experian score is 600, TransUnion 618 and Equifax is 720, your middle score is be 618.

Many people make the false assumption that a FICO mid score is all three scores added together and then divided by three. In other words they assume mid scores are averages of all three credit scores. This just isn’t the case.

In the above example the average of all three FICO credit scores is 646. A 646 is sufficient to get a mortgage just about anywhere. The score could certainly be higher, but a 646 will get the job done. But the mid score in the above scenario is actually not 646, but a mere 618, and it is close to impossible to borrow with a 618 mid score.

This should make it clear why it is vital to watch your FICO credit scores with all three credit agencies. Your mid score matters, when it comes time to apply for a mortgage, and it doesn’t matter that your highest score is 750+. It is your mid score that matters.

What are my options if the house doesn’t appraise?

A question I’m often asked by buyers, as we’re discussing how much they should offer for a particular home is, “What happens if the house appraises for less than the contract price?” This is a great question that is important to any and all home buyers.

In the event the buyer qualifies for the loan, but the home does NOT qualify for the loan, the buyer has to make a decision. The buyer can go ahead with the contract at the stated purchase price, waiving the financing contingency and coming up with the additional cash at closing. Or, the buyer may try to renegotiate the price to an amount that the lender is willing to finance. If the buyer wants to renegotiate but cannot agree with the seller on a new price, the buyer may choose to proceed at the stated purchase price OR cancel the contract. The buyer’s deposit would be returned to the buyer.

I’ll add something here that should be rather obvious. If you’re a potential buyer and you have a contract on a house for $200,000 and the appraisal comes in at $180,000 this means the licensed appraiser is saying that the home is not worth what you are about to pay for it! Should you decide to go forward with the contract and pay the agreed upon $200,000 you will immediately be in the red by $20,000. In some unusual cases it makes perfect sense to pay the $20,000 out of pocket and close the sale, but in most cases it is in your best interest, as the buyer, to either renegotiate the price down to the apprised value, or walk away from the purchase.

NOTE:

Not all appraisers will come up with the same value. A second appraisal can often be ordered in an effort to check the accuracy of the first appraisal. If the second appraisal comes in at contract price or higher, and the appraisal gets approved by the underwriter, the buyer can proceed with the purchase of the property at the contract price.

Only 1 in 8 short sales ever close

Fannie Mae recently released statistics showing the difficult nature of a Short Sale transaction and how that relates to Foreclosure statistics.

In 2008, Fannie Mae found that for every one short sale that closed, eight homes went into foreclosure. This speaks to the difficult nature of the Short Sale process and the backward nature of how lenders handle them.

Mortgage Refinancing Tips

Reducing Your Mortgage Fees

Expert Real Estate Tips: Estimating Mortgage Fees

Loan Modification Expert Moose Scheib on Fox News with Neil Cavuto

Inside Tiger Wood’s House

ABC News – Nightline on Loan Modifications

The Housing Finance Authority of Pinellas County offering down payment assistance for first-time home buyers

A new mortgage program from the Housing Finance Authority of Pinellas County could hold the key to homeownership for first-time homebuyers. The First-Time Homebuyers Program is for individuals who have never owned a home, have not owned a home in the last three years or who are veterans.

Now is a great time to buy and take advantage of additional savings with the federal first-time homebuyer credit of up to $8,000. Homes must close before Dec. 1, 2009 to receive this additional credit.

Down payment and closing cost assistance is also available. This program is available for a limited time.

For more information, call (727) 464-8210 or visit the Housing Finance Authority.

Loan Modification CNN News

Breaking News: Congress Extends Tax Credit

Tax credit extension passes House and Senate

By Florida Realtors®

WASHINGTON – Nov. 5, 2009 – The $8,000, first-time homebuyer tax credit has not yet been extended beyond its Nov. 30 end date, but it’s very close to gaining a longer life.

The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama’s signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow.

Until the president signs the bill, however, it is not law.

In addition to extending the tax credit for first-time homebuyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.

Florida downpayment assistance

After the president signs the bill and extends the tax credit, the Florida Homebuyer Opportunity Program – a downpayment and closing costs assistance program relating to the federal tax credit -automatically gets extended too. The state still has about $28 million available for homebuyers. The money is essentially a loan to first-time buyers; they receive it upfront, use it for a downpayment or other costs, and pay it back once they get their federal refund.

Foreclosures Account for More Than Half of All Sales

In its monthly existing home sales report, the National Association of Realtors said foreclosure sales accounted for more than half of all existing home sales nationwide in March. NAR also reported that foreclosed homes sold for 20 percent less than homes not facing foreclosure.

Source: National Association of Realtors

Obama will pay your mortgage!

Well, not exactly. But on February 18, 2009, President Obama announced his Making Home Affordable Program (MHA), designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages. In doing so, the plan not only helps responsible homeowners behind on their payments or at risk of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.

Why not find out if you’re eligible? Visit Makinghomeaffordable.gov

Homebuyers Tax Credit

Buy a home and you get a tax break!

As part of the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009, a First-time Homebuyer Tax Credit is now available. But this special tax break ends in 2009.

A homebuyer tax credit has been available for first-time homebuyers in Washington, D.C. for many years, and now first-time homebuyers nationwide can take advantage of a similar benefit.
In this article we’ll discuss some of the provisions of the credit, changes based on the new legislation, and explain how to use it.

Buying a first home is a big step!

Fortunately, trained professionals like your Realtor®, Chris O’Connor, are willing and able to help you through the process. In addition to the many benefits of homeownership, the homebuyer tax credit and more affordable prices make now an especially opportune time to purchase. Still, the commitment is a substantial one, and the National Association of Realtors® encourages you to ask questions and be informed about the decision you are making so that the home you buy is a home you can enjoy for years to come.

Am I Eligible?

First-time homebuyers who purchase a principle residence on April 9, 2008 and before December 1, 2009 are eligible. If you (and your spouse, if married) have not owned your Read more

How to Avoid Florida Mortgage Fraud Scams

McCollum Unveils Website to Help Homeowners Avoid Mortgage Fraud-Related Scams

TALLAHASSEE, FL – Attorney General Bill McCollum today unveiled a new website designed to help homeowners avoid mortgage fraud-related scams. The website, at http://myfloridalegal.com/mortgagefraud, provides consumers with easy access to current investigations, complaint forms, and tips to identify and avoid foreclosure rescue fraud. Foreclosure rescue fraud, or fraud involving loan modifications related to foreclosures, is the complaint topic most commonly reported to the Attorney General’s Office and involves the charging of an up-front fee for foreclosure rescue services before any services are provided, if they are provided at all. Read more

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