Mortgage Lending Industry Prevented Almost 240,000 Foreclosures in December
Jan. 29 -- First Time Foreclosure Preventions Exceeded 200,000 in 4 Consecutive Months, Modifications Were More Than Half of All Workouts WASHINGTON, DC--(MARKET WIRE)--Jan 29, 2009 -- HOPE NOW, the private sector alliance of mortgage servicers, counselors, and investors that has been working aggressively to prevent foreclosures and keep homeowners in their homes, today announced that its members and ...
Yahoo! Canada
January, 28 2009
HOUSE PASSES STIMULUS BILL
Yesterday, the U.S. House of Representative passed H.R. 1, the Economic Recovery Package, by a 244 to 188 vote. The bill contains a number of issues critical to REALTORS® and the industry, including the extension, until the end of 2009, of all Metropolitan Statistical Area's (MSA's) 2008 Fannie Mae, Freddie Mac and FHA loan limits. The proposed legislation also will eliminate an existing payback requirement on the first-time homebuyer tax credit for qualified buyers who purchase a home between Dec. 31, 2008 and July 1 this year.
Congress included these provisions as a direct result of the grassroots efforts put forward by REALTORS®, and the advocacy efforts of both NAR and C.A.R. Congress elected not to include numerous housing provisions beyond those previously mentioned. Instead, Congress will address housing issues in other legislation next week when the Financial Services Committee meets.
In addition to tax credits for individuals and married couples, other provisions in the bill include funds for increasing access to high-speed and broadband; highways and roads; railroads; alternative energy incentives; unemployment insurance; Medicaid insurance, health care technology upgrades; childcare; education; and low-income and affordable housing programs. The bill is expected to be voted on by the Senate sometime next week.
US House Panel Begins Debate On 'Cram-Down' Mortgage Relief
(Dow Jones)- A U.S. House panel began debating legislation Tuesday to allow judges to modify mortgage loans for people in bankruptcy, after a key Democrat agreed to changes narrowing its scope. The legislation would amount to the most aggressive step yet by the federal government to help troubled borrowers hang on to their homes. The banking industry warns that it will raise mortgage ...
Morningstar.com
Fight building over judges redoing mortgages
January, 27 2009
Washington -- Most congressional
Democrats say the quickest way to save homeowners like Troy Butler of
Saginaw, Mich., is to let them declare bankruptcy and allow judges to
dictate new mortgage terms. Easy, except the lenders that would absorb
the pain - and lose control of any deals to ease the terms - do not want
to get dragged into bankruptcy court by millions of overextended
borrowers. ... The Sun News
Foreclosure swindlers prey on desperate
January, 25 2009
Foreclosure swindlers are promising to help people keep their homes and taking $1,000 or more up front -- and doing little or nothing as the foreclosure proceeds.
But there's good news, too: You can learn how to save your home for free.
Foreclosure rescue scams, which target people who are desperate and have little money, are being reported in the thousands all around the ...
If you own property anywhere within the State of California that currently has or will possibly have a Septic System in the future, please read on.
I know Septic Systems are not an overly attractive point of discussion, however, the passage of AB 885 and impending regulations could cost you thousands of dollars and potentially lead to you owning a piece of property that is NOT buildable or a Home that would need thousands of dollars in Point of Sale retrofits.
This is a potential and very real problem for EVERY private property owner and Realtor in our State.
The state of California has released the proposed regulations for onsite wastewater treatment systems (OWTS) and the accompanying Draft Environmental Impact Report (DEIR) evaluating the impacts of the implementation of the regulations on the people and environment of California. You should be concerned that, if enacted, these regulations will make it too burdensome to own a property with a septic system. There is even a new point-of-sale requirement to transfer technical documents.
The cost of achieving compliance is too burdensome and costly and hurts housing affordability.
Groundwater testing and routine inspections will be required whether there is evidence of septic-related problems or not, adding an unnecessary cost burden to property owners - many of whom are either low income and are dealing with declining property values due to the market.
The separation to groundwater standard and loss of sidewall infiltration will require new and existing homebuyers to install tremendously expensive “alternative systems”- if they are even locally allowed. This will make homeownership unachievable for many people throughout the state. And will certainly make it much more challenging in the sale of your existing property.
The regulations need to allow for an effective, pragmatic variance process, where local government regulators can make site-specific exceptions to the regulations and determinations of "functional equivalency" for local conditions.
The owners of existing septic systems with supplemental treatment systems will now be required to maintain and transfer technical documents at point of sale. This is a problem because:
Thousands of systems would already be out of compliance due to lost or misplaced documents.
Home Owners, Land Owners and Realtors® will be exposed to increased liability in the sale or transfer of property.
The requirement to install groundwater-monitoring wells for new systems is too costly and will prevent building on otherwise usable lots.
These proposed regulations and draft Environmental Impact Report (DEIR) have been released to the public for review and can be found at:
Waterboards
The state is in the process of holding several local workshops and hearings where members of the public may give written and/or oral input regarding the State Water Board’s proposed regulatory actions. These meetings are a forum designed to gain public input about the proposed regulations and content of the DEIR. This is your chance to let the SWRCB know that the proposed regulations are too costly and burdensome and that the DEIR falls short of adequately evaluating the true financial impact of the proposed regulations on California homeowners.
You can attend a Public Hearing in Sacramento February 9, 1:30pm at the Cal EPA Building, Byron Sher Auditorium, 1001 I Street, Sacto. Other locations are listed on the public site
Or provide written comment to:
State Water Resources Control Board Division of Water Quality
Attn: Todd Thompson, P.E.
1001 I Street, 15th Floor, P.O. Box 2231
Sacramento, CA 95812
email: AB885@waterboards.ca.gov
Wednesday January 21, 2009
Fantasizing about foreclosures? Novice investors beware
Buying homes at auction is fraught with risk, and it takes a big investment of time as well as money.
The allure of foreclosed properties to a would-be real-estate investor is nearly irresistible: Buy valuable properties for pennies on the dollar with little or no risk to your own money, work when you feel like it and grow rich.
Countless seminars and how-to books promise to turn even the novice buyer into a high-powered real-estate investor through the magic of foreclosed homes. The problem is that instant, safe, trouble-free wealth often turns out to be like most things that sound too good to be true -- a scam. If it were easy money, everyone would be getting rich off of foreclosures.
True, some people do, just like some people get rich in the stock and commodities markets, from oil wells and from foreign currencies. But, just like these other forms of investing, profitably buying and selling real estate takes research, knowledge, experience, money and time. And nearly every deal with a huge profit potential comes with an appropriately sized risk.
Beyond get-rich-quick seminars and informational classes offered by nonprofit agencies and local sheriff's offices, few professionals teach novice investors the ins and outs of foreclosure sales. Why should they show you how to buy a great property at a deep discount instead of doing the deal themselves?
Still, if you are willing to go it alone and invest the time and cash required to deal in foreclosures, your first step should be to understand the process as thoroughly as possible.
Auction Information
Monday January 19, 2009
Saturday January 17, 2009
IRS TO EXPEDITE TAX LIEN RELIEF FOR HOMEOWNERS
As background, a homeowner seeking to sell or refinance
a property must generally pay off an existing federal
tax lien. However, during the current economic downturn,
many homeowners don't have the cash or equity to do so.
Hence, for a refinance, the homeowner may request that
the IRS makes its tax lien subordinate or secondary to
the lien of the refinancing lender. For a sale, the
homeowner may, under certain circumstances, request that
the IRS discharge its claim. The IRS's processing time
for subordination or discharge requests has been about
30 days. The IRS is currently working to expedite that
time frame to help distressed homeowners. For IRS
instructions on requesting relief from federal tax
liens, go to the IRS Publication
783 for discharges and Publication
784 for subordinations at
www.irs.gov.
Wednesday, January 7th, 2009
NEW YORK FED BEGINS PURCHASING MORTGAGE-BACKED SECURITIES
The Federal Reserve Bank of New York on Monday began purchasing fixed-rate mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. Selected private investment managers are acting as agents of the New York Fed in these purchases.
Summary data detailing these operations will be available on the New York Fed's
Web site beginning Jan. 8, and will be updated on a weekly basis each Thursday.
This program, first announced in November, is intended to support the mortgage
and housing markets and foster improved conditions in financial markets
AUTO LOANS, HOME EQUITY
DELINQUENCIES RISE IN THIRD QUARTER 2008 Credit card delinquencies fall
WASHINGTON – In the latest sign that consumers
are under financial stress, indirect auto loan and home equity
lines of credit (HELOC) delinquencies reached their highest
levels ever during the third quarter of 2008, according to the
American Bankers Association's Consumer Credit Delinquency
Bulletin. In addition, the composite ratio, which tracks eight
closed-end installment loan categories, rose 22 basis points to
2.90 percent of all accounts (seasonally adjusted), the highest
level since 1980.
ABA Chief Economist James Chessen said the
figures show a continued weakening of the U.S. economy.
"The number one factor in rising consumer
credit delinquencies is job losses. With one million jobs lost
in the first three quarters and two and a half million expected
for the year, delinquencies of all types of consumer loans will
likely increase in the coming quarters," Chessen said.
Delinquencies for indirect auto loans, which
account for 90 percent of auto loans, rose 18 basis points to a
record 3.25 percent. HELOC delinquencies rose seven basis
points, marking another record high at 1.15 percent.
The bank card category was one of only two
that showed a decline in delinquencies, dropping 34 basis points
to 4.20 percent of all accounts. The ABA report defines a
delinquency as a late payment that is 30 days or more overdue.
"While some people are relying on credit cards
to meet daily expenses like food and gas, many are being careful
not to add new debt. Reducing debt and building up cash
reserves are good strategies right now. If you're under
financial stress, credit cards can be a bridge to meet daily
expenses. And, unlike other loans with fixed payments, credit
cards let you adjust monthly payment amounts. This flexibility
is certainly helping people manage debt better during this
difficult economic period," Chessen said.
The third quarter composite ratio is made up
of the following closed-end loans. All figures are seasonally
adjusted based upon the number of accounts.
Home equity loan delinquencies increased
from 2.56 percent to 2.63 percent.
Property improvement loan delinquencies
increased from 1.49 percent to 1.63 percent.
Indirect auto loan delinquencies
increased from 3.07 percent to 3.25 percent.
Direct auto loan delinquencies fell from
1.77 percent to 1.71 percent.
Marine loan delinquencies increased from
1.54 percent to 1.82 percent.
RV loan delinquencies increased from 1.07
percent to 1.27 percent.
Mobile home loan delinquencies increased
from 3.03 percent to 3.08 percent.
Personal loan delinquencies increased
from 2.67 percent to 2.69 percent.
Chessen advised consumers to watch for warning
signs of financial problems and act quickly. Warning signs of
overextended credit include:
Paying only the minimum payment month
after month;
Being out of cash constantly;
Being late on important payments such as
rent or mortgage;
Taking longer and longer to pay off
balances; and
Borrowing from one lender to pay another.
For homeowners having trouble paying their
mortgage, ABA strongly recommends they consult
www.hopenow.com
or call 1-888-995-HOPE. HOPE NOW is a cooperative effort
between counselors, investors, and lenders to help homeowners in
distress.
For others who are having trouble paying down
debts, ABA advises taking action -- sooner rather than later --
to solve debt problems with the following tips:
Talk with creditors – the sooner you talk
to them, the more options you have;
Don't charge more purchases until your
problems are solved;
Avoid bankruptcy – it's a short-term
solution with long-term consequences; and
Contact Consumer Credit Counseling
Services at 1-800-388-2227.
For more information on budgeting, saving and
managing credit, visit the ABA Education Foundation's Consumer
Connection web page at
www.aba.com.
The American Bankers
Association brings together banks of all sizes and charters into
one association. ABA works to enhance the competitiveness of the
nation's banking industry and strengthen America's economy and
communities. Its members – the majority of which are banks with
less than $125 million in assets – represent over 95 percent of
the industry's $13.6 trillion in assets and employ over 2
million men and women.