Musings of a Career Consultant

SoCal Texan in Bmore Leading Rock Stars

How’s the Market (From an Agent’s POV)? October 19, 2012

CANADA

  • Debt soars into danger zone. Canadians have entered the debt danger zone that helped trigger real estate crashes in the U.S. and Britain.
  • May Dodge Housing Hard Landing. Pressures in the Toronto and Vancouver housing markets are moderating with neither a bubble nor a hard landing in sight for the country’s property market.
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New Short Sale Guidelines for GSEs Will Make Process Easier August 28, 2012

Esther Cho wrote this great article for DSNews.com and I wanted to share its content:

Starting November 1, 2012, Fannie Mae and Freddie Mac will implement new short sale guidelines to make the approval process easier for eligible borrowers.

“These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities,” said FHFA Acting Director Edward J. DeMarco in a statement. “The new standard short sale program will also provide relief to those underwater borrowers who need to relocate more than 50 miles for a job.”

The changes are part of the FHFA’s Servicing Alignment Initiative and will require a streamlined approach with documents, leading to a reduction in documentation requirements. For example, borrowers who are 90 days or more delinquent and have a credit score lower than 620 will no longer be required to provide documentation for their hardship.

The GSEs will also waive their right to pursue deficiency judgments. Borrowers with sufficient income or assets can make cash contributions or sign promissory notes instead.

One major barrier that is also being addressed is the issue with second lien holders. To prevent second lien holders from stalling the short sale process, the GSEs will offer up to $6,000.

The new guidelines will also enable servicers to approve a short sale for borrowers who are not in default but face certain hardships including the death of a borrower or co-borrower, divorce or legal separation, illness or disability or a distant employment transfer.

In addition, all servicers will have the authority to approve and complete short sales that follow the requirements without first going to the GSEs for approval.

Provisions were also created for military personnel with Permanent Change of Station (PCS) orders. Servicemembers who are required to relocate will automatically be eligible for short sales even if they are current. They also won’t be obligated to contribute funds to pay for the remaining deficiency.

“Short sales have become an increasingly important tool in preventing foreclosures and stabilizing communities,” said Leslie Peeler, SVP, National Servicing Organization, Fannie Mae. “We want to help as many homeowners avoid foreclosure as possible. It is vital that servicers, junior lien holders and mortgage insurers step up to the plate with us.”

Tracy Mooney, SVP of Single-Family Servicing and REO at Freddie Mac, said, “These changes will make it clear that Freddie Mac servicers have the authority to approve short sales for more borrowers facing the most frequently seen hardships. These changes will further empower the industry to minimize foreclosures and help Freddie Mac in its mission to minimize credit losses and fortify a national housing recovery.”

Fannie Mae will send the announcement for the new changes to servicers Wednesday. Freddie Mac sent their announcement Tuesday.

In April, the GSEs also announced they were setting requirements to have a decision on a short sale offer made within 30-60 days.

What do you think? Are you believing in the hype?

 

I love Citrus Valley Association of @REALTORS! April 12, 2012

Boy, howdy!

If you went to CVAR‘s 4th Annual Symposium today, you were inundated with information! You walked out with notes galore of websites and apps you’ve never heard of, with Short Sale strategies you didn’t consider, economic trends you couldn’t see coming and knowing what animal you are.

I am always impressed by my association but they pulled out all the stops today. We started the morning with John Mulville, Senior VP of RealEstateEconomics.com, who laid out how much longer it’s really going to take, what job creation looks like and what to expect for our ever-changing market. Then we had Nobu Hata, the 2012 NAR YPN Chair, emphasise the importance of being “local, social, mobile” and how to make blogging simple enough for anyone to do. Our lunch speaker, Chris Smith the Chief Evangelist for Inman, give us the tools and the tool belt on how to be successful in that world that Nobu talked about. After lunch we had a great Distressed Property Panel moderated by the always-funny and freshly brushed Jacob Swodeck which touched on REOs, Short Sales, that climate and how to best negotiate through it. Last but certainly not least was Stefan Swanepoel, of NY Time’s Bestseller Surviving Your Serengeti fame, who showed everyone what animal they are.

If any of this is going over your head, let me know and I’d love to share my notes! I just had to sing my Association’s praises since they put together this dynamic day for us. If you missed it, you REALLY missed out! It was amazing!

 

2012 Short Sale Industry Outlook 03/29 9am March 27, 2012

Come see one of my favorite Short Sale speakers, Jacob Swodeck, drop some great knowledge: 2012 Short Sale Industry Outlook. Event will be held at 8250 White Oak Ave., Suite 102, Rancho Cucamonga. See ya’ll there!

 

I was on the radio… Again! :) July 5, 2011

I love doing these radio shows for the Real Cents Radio Network on KTIE 590 in San Bernardino County! It’s so awesome to send out so much good information! We talked about “The Good, The Bad and The Ugly” in today’s real estate market. I just wanted to jot down a few of my thoughts should you have missed the show:

The Good? Affordability is at an all-time high. Home prices have declined month over month since July ’06 and rents have increased month over month since then. Also, interest rates are super low (even though they’ve started a small creep that will turn into a steady walk by the fall). And, with 35% of Buyers being 1st-timers, it’s good to know you’re not the minority!

The Bad? Last year’s appreciation is gone. Real prices are still high in some areas and condo sales decreased 8% last month but I know we’ll post a bigger decrease  due to the expiration of FHA Approval on a lot of complexes. We’re at 2000 prices per Case-Shiller and the higher end could still see a hit as we roll into the 2nd half of the year.

The Ugly? The percentage of homeowners that are underwater has stayed the same since the 1st quarter of ’09. What’s that mean? Even with all of the REO and Short Sale homes that have been bought up, we’re still seeing a steady stream feeding the market i.e. we’re not done yet. (Personal opinion: We won’t be for another 3 years.) Experts think it could take us 5-6 years to fully pull out of this. Inflation will then happen at a slow 2% and unemployment will remain high (which is why our recovery will be so slow).

What can you do to help me help you? Click this link and take a few seconds to fill this in and fight for your right to Affordable Mortgages. The government is considering making the minimum down payment 20% which would cripple our already fragile housing market (especially in areas like SoCal). They’re also talking about pulling out of the mortgage market. Privatization wouldn’t be good for anyone involved.

Should you have any questions about anything you’ve read here or if you’re interested in any city in Southern California (particularly the San Gabriel Valley or Inland Empire), please feel free to call your favorite REALTOR Smile

And, I can always send you a FREE Market Analysis on your home, just ask.

 

How’s the Market? *In San Dimas April 6, 2011

That depends! Are you looking to Buy, Sell, Invest or Rent?

In San Dimas, the average price is $437,473.The Market Action Index is 18.32 which makes this a Buyer’s Market (27-33 is neutral and above that is a Seller’s Market). Properties are staying on the market on average 140 Days (and if that’s a Traditional sale, that’s WAY too long but it’s very understandable for Short Sales). The average price per SF is $245. Different communities will have different numbers. And, there are approximately 104 properties on the market. These numbers are only indicative of Single Family Residences. Let me know if you’re interested in the Condo/Townhouse numbers.

Should you have any questions about anything you’ve read here, would like more details about a certain area of San Dimas or if you’re interested in another city in the San Gabriel Valley or Inland Empire, please feel free to call your favorite REALTOR 🙂

This information was obtained through Altos Research, LLC.

Also, I just polished off my Affiliates list! Check it out!

 

Wait, What’s a Short Sale? April 5, 2011

You’ve probably gotten a LOT of mixed messages about what a Short Sale is or isn’t. Well, the California Association of REALTORS would like to help however we can. Check out this link to get lots of valuable information on Short Sales. As you’ll read on the website:

A short sale is a sales transaction for which a seller’s mortgage lender voluntarily agrees to accept a loan payoff of less money than what is owed on the mortgage loan.  In a short sale, the property may or may not be in foreclosure.  However, homeowners may consider short sales as a viable option for avoiding foreclosure.

What you might also be wondering is “What will Melissa need to Help me?” I won’t need much but I will need the following:

  • Last 2 Months Pay Stubs
  • Last 2 Months Bank Statements
  • Last 2 Years Tax Returns
  • List of Monthly Expenses

The following will still be needed but others will help or provide these things:

  • Hardship Letter (I’ll help with this)
  • Authorization Letter (I’ll provide this)
  • Date Listed and Price (via MLS print-out and Listing Agreement that I’ll provide)
  • Fair Market Value (via Comparative Market Analysis that I’ll provide)
  • Purchase Contract (from the Buyer you choose)
  • HUD-1 (from the Escrow Co. we choose)
  • Buyer’s Pre-Qualification Letter (from the Buyer)

See, that’s not so bad for you, now is it? I think Short Sales seem scary because you don’t know what they entail. Educate yourself and I suggest you talk to your Tax guy and Attorney to make sure it’s a good idea for you (because everyone’s situation is different). Don’t be scared of Short Sales.

My Closing Rate on Short Sales is 100% but more important than that is the process we’ll take to move your family into the next chapter of ya’ll’s life. I will do everything in my power to make it as seamless a process as I can.