That’s how good Tam Doan got at his job in Bank of America’s pre-sale foreclosure department in Southern California.

Of course, he didn’t have time to actually read the paperwork he was signing, he said, and in some cases, he didn’t even know what documents he was putting his pen to.

“I had no idea what I was signing,” said Doan. “Either you were in or you were out.”

The recent revelation that loan servicers had employees sign thousands of documents a month without verifying the information has thrown the foreclosure system into chaos. Judges are increasingly questioning whether the servicers have their paperwork in order.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

Come on banks… people are hurting here in the Stockton and Modesto areas.  Please give attention to these files.  We are talking about people’s lives!  Hopefully at the end of the audit periods that many banks are conducting we will see the removal of robo-signers and other non-professional activities.  In the mean time… borrower beware.  How many  Central Valley short sales or loan modifications have been denied by robo-signers… no one may ever really know.

The Power of Panic

In times of crisis there are two forces that dramatically assault our lives.  One is the crisis itself, the other is the panic cause by reaction to the crisis.  In today’s real estate recession many are panicking.  From real estate and mortgage professionals whose income has dramatically declined to home owners losing houses and equity.

What does panic do to people?

• Panic robs us of objectivity. When panicked, people make rash choices.  Often these choices are regretted in the future and can be quite destructive.
• Panic allows others to take advantage of us. By focusing on our fears and being driven by our emotions we have less mental energy to avoid those who would prey on us in times of difficulty.  This evidenced by the large amount of fraudsters who are pursuing those who are facing foreclosure.  Scams in the area of loan modifications, short sales, and deed transfers are just some examples.
• Panic erodes our hope for the future. This video is popular because many have lost hope that our economy will be restored and that there is a bright future for our children.

What to do to prevent panic.

• Avoid self-fulfilling prophecies and negative speak about your life and circumstances. The person who says “I will never get out of this mess,” may find it harder and harder to experience a break through in their circumstances.  Political leaders and media figures who say that our children will have a worse life than us may in fact be a contributing cause to a negative future.
• Seek empowerment. No matter how bad things are, there are things you can do to change your circumstances and/or control the outcome.  This is especially true for those facing foreclosure.
• Find people who share your desire to succeed.  Whether it is a financial professional who will assist you with tough decisions or peers who are facing the same issues there are people who can provide support and reduce your sense of panic.
• Take stock of your situation and determine if it is time for a fresh start. For some, keeping a house may not be the best choice.  Only you can decide this but it is critical that you evaluate all your options.

Jeff Green, REALTOR

Seniors have been angered by bank policies.

The story is becoming all too familiar.  An older couple or single person worked for years to build a nest egg for retirement only to have it taken away or greatly reduced by the real estate recession.  The pain is worsened by the fact that many seniors were misled into loan products that now have left them high and dry with horribly high monthly payments.  A soon to be retired resident may have purchased a house around 2004 on speculation that the market would rise give them an equity boost, allowing them to sell and relocate in three to five years.  When the time came to retire, their investment was ravaged.  At the same time their income dropped at retirement.  Insult is added to injury if the borrower was teased into a loan rate that was low at first then adjusted up to now make payment impossible.  Anger is understandable.  There are ways to turn anger in action.

What can seniors do to gain more control of the process?

• Call the Homeowner’s Hope Hotline.Call 1-888-995-HOPE (4673) to learn about Making Home Affordable and to speak with a HUD-approved housing counselor for free.
• Call your bank. See what programs they have to offer.
• Consult with a financial planner.  When living on a fixed income, seniors have to plan for the future.  It may be helpful to get professional advice.
• Consider short selling your home you can not modify your loan.

Please email or call our office for free consultation.

Jeff Green, REALTOR

Even Santa is surprised by the behavior of banks.

As the end of the year approaches it would do us well to analyze the behavior of the banks. Short sale lien holders have caused many home owners and real estate agents both grief and joy throughout the year.  Many REALTORs have  made a living short selling homes here in the Central Valley, which in most cases beats a sharp stick in the eye. Modesto and Stockton have seen more than their share of the crisis.  While Santa is saying Ho Ho Ho, many feel like their lien holder is saying Ha, Ha, Ha.  But let’s not get too cynical… although it kinda of feels good … doesn’t it?  Surprisingly enough, the banks have had some good behavior this year and like the little snotty nose brats screaming on Santa’s lap at the mall, we should reinforce any good behavior that banks can muster up.

So here we go with a partial list of lien holder behavior.

Good…Equator. While many hated it at first it is an easy system to upload documents and check status.  This really cuts down on the “dog ate my homework” type excuse that banks make when they say that they can not find our five fold faxed paperwork.  Good job B of A and GMAC for using Equator.

Bad…Not extending short sale approvals or postponing trustee sale dates.  Come on… that’s just lame.  When the loss mitigation department is as slow as dirt they often push us into impossible timelines.  Wake up banks, if you want us to hustle do a little hustling yourselves.

Good… the many negotiators that actually have a heart. Yes they do exist and when you meet one they are a true blessing.

Bad.. forcing contributions from sellers and agents to close short sales. One of my deals this year was a first deed of trust (no recourse) one loan short sale.  Seller was unemployed and had used his life savings to keep his mortgage afloat.  The lien holder wanted $40,000 to approve the short sale.  The seller walked.

Good… the goal of banks to streamline the short sale process. Sorry they lied, but isn’t it the thought that counts?  Not really, that’s just an excuse to give a bad gift.

All she wants for Christmas is lien holder approval.

Bad…delays in making minor changes or approvals on small issues. How long can some of this simple stuff take?  Accepting an updated HUD-1 or seller’s financials for example.

Good…Fannie Mae and Freddy Mac protecting REALTOR commissions. Why should REALTORS work three times as long for half the pay.  Oh yeah… I forgot… greedy banks.

Bad…not granting non-buyer specific short sale approvals. When a buyer walks we have to start all over again.  That’s just plain dumb.

Good…Wachovia Short Sales. Fourteen day approval!!!!!!!!!!!!!!!!!

Bad…poorly trained staff at the bank. Double talk, lost files, incompetence….  They are not all that way, but the bad ones can kill a deal.

If you have more to add please comment below.

Jeff Green is a Short Sale REALTOR serving Stockton, Modesto and the greater Central Valley.

2010-10 Stanislaus For Sale vs Sold Short Sales

2010-10 Stanislaus For Sale vs Sold Short Sales

More Graphs….

2010-10 Stanislaus Average Price per Square Foot Short Sales

2010-10 Stanislaus Average Price per Square Foot Short Sales

2010-10 Stanislaus Days on Market Sold vs List Price Percent Short Sales

2010-10 Stanislaus Days on Market Sold vs List Price Percent Short Sales

2010-10 Stanislaus Average Price for Sale and Sold Short Sales

2010-10 Stanislaus Average Price for Sale and Sold Short Sales

2010-10 Stanislaus Months of Inventory Short Sales

2010-10 Stanislaus Months of Inventory Short Sales

Are you just a number to your lender?

Keeping your dignity intact in the foreclosure process.

Many people who are facing foreclosure feel as if they are only a number in the “system.”  I usually tell people who are in the foreclosure process that it is the opposite of the process of acquiring a mortgage:

• When you are a potential borrower the banks make nice calls to you with lots of offers and promotions.  When you are facing foreclosure they call you with threats.
• When you are applying for a loan you have to supply lots of information about how you are a great risk for the bank to loan money to.  When facing foreclosure, you have to describe how you are at risk, which can feel invasive.
• When you are considering a home loan you are full of hopes and dreams.  When facing foreclosure your often feel fear, embarrassment and a sense of loss.

All of these issues can cause pain and frustration and feelings that your dignity is being robbed from you.

What to do…

• Remember banks and their employees are not God.  Some bank officials, especially collections departments can be downright mean.  The best way to deal with them, if they are hostile or rude, is to never come down to their level. Keep all conversations brief and to the point.  A strategy that many collections people use is to bully or push you into an emotional state in which will comply to anything they ask.  Keep your cool and remember your objectives.
• Don’t go it alone.  If you are embarrassed, it is normal, but you should definitely find someone to talk to.  Friends, family, clergy…anyone who will provide support.
• Watch out for “Foreclosure Fatigue Syndrome.”  When you go through the process of foreclosure or avoiding foreclosure it is draining.  For some it is so draining they simply give up.  Sometimes people give up and fall into foreclosure when it can be avoided.
• Seek professional advice.  Short sales, loan modifications and foreclosures are the financial equivalent of major surgery.  There are professionals who can provide low-cost or free consultations.

Jeff Green, REALTOR.

2010-10 San Joaquin For Sale vs Sold Short Sales

2010-10 San Joaquin For Sale vs Sold Short Sales

More Graphs….

2010-10 San Joaquin Average Price per Square Foot Short Sales

2010-10 San Joaquin Average Price per Square Foot Short Sales

2010-10 San Joaquin Days on Market Sold vs List Price Percent Short Sales

2010-10 San Joaquin Days on Market Sold vs List Price Percent Short Sales

2010-10 San Joaquin Average Price for Sale and Sold Short Sales

2010-10 San Joaquin Average Price for Sale and Sold Short Sales

2010-10 San Joaquin Months of Inventory Short Sales

2010-10 San Joaquin Months of Inventory Short Sales

A short sale is where your home is sold for less than owed on the mortgage loan as an alternative to foreclosure. It has it’s advantages and disadvantages. However, it’s disadvantages typically aren’t nearly as bad as a foreclosures. One of the disadvantages is that it’s a lengthy process and you will not be guaranteed approval. Also, as with a foreclosure, it will have a negative affect on your credit rating. Luckily, there are special programs that exist to help the short sale process complete smoothly.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

FHA loans have been a major force in the short sale lending market.   Some home owners in the Modesto and Stockton areas are under the false assumption that they can not do a short sale if they have a FHA loan.  Although there are tighter standards FHA loans can  receive a short pay off.  On the purchase side VA loans are often trouble by strict appraisals and items that the buyer can not pay for.  On the sales side any streamlining is a great help.

2010-10 Waterford and Hickman For Sale vs Sold Short Sales

2010-10 Waterford and Hickman For Sale vs Sold Short Sales

More Graphs….

2010-10 Waterford and Hickman Average Price per Square Foot Short Sales

2010-10 Waterford and Hickman Average Price per Square Foot Short Sales

2010-10 Waterford and Hickman Days on Market Sold vs List Price Percent Short Sales

2010-10 Waterford and Hickman Days on Market Sold vs List Price Percent Short Sales

2010-10 Waterford and Hickman Average Price for Sale and Sold Short Sales

2010-10 Waterford and Hickman Average Price for Sale and Sold Short Sales

2010-10 Waterford and Hickman Months of Inventory Short Sales

2010-10 Waterford and Hickman Months of Inventory Short Sales

Your Banker Has Mud on His Face

According to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions, the ongoing controversy surrounding foreclosures is taking its toll on the housing market as a significant share of home shoppers refused to even look at distressed properties in October.

Meanwhile, both the share of home purchases involving distressed properties and average prices for foreclosed properties fell last month, the survey found.

News reports that major servicers were pulling real estate owned or foreclosed properties off the market, including some already under contract, clearly spooked would-be home buyers. The closely-watched monthly survey found that 14% of owner-occupant home buyers and 6% of investors refused to view foreclosed properties in October. This home buyer fear was even worse for short sale properties where 30% of owner-occupant shoppers and 20% of investors refused to view these homes.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

This is not what we needed to hear right now.  Another wrench thrown in the gears by the banks.

Let’s review.  The banks dropped lending standards and loaned to people who could not afford to buy and entrapped others into negative amortized loans. This created the housing bubble that burst. Homes foreclosed and were dumped on the market at such a pace that the inventory spiked and prices spiraled down.  Many home owners lost confidence that their equity would never return so they abandoned their home and bailed out for a better life often out of the area.  Here in the Modesto and Stockton areas we have seen a big exodus by many home owners back to the Bay Area.  The next trend was sloppy, inefficient processing of short sales on behalf of the banks.  We are still in this quagmire.  Following the introduction of cheesy short sale processing was the  insulting overture by banks to home owners in the form of useless loan modification programs that helped a fraction of those applying.  Now we are seeing consumer confidence fading through the latest fraud issues with the banks … including Robo Signing.

The misery index is high but not as high as the greed and fraud index at the banks.

What should home owners do.  Consider all options to avoid foreclosure.

2010-10 Turlock For Sale vs Sold Short Sales

2010-10 Turlock For Sale vs Sold Short Sales

More Graphs….

2010-10 Turlock Average Price per Square Foot Short Sales

2010-10 Turlock Average Price per Square Foot Short Sales

2010-10 Turlock Days on Market Sold vs List Price Percent Short Sales

2010-10 Turlock Days on Market Sold vs List Price Percent Short Sales

2010-10 Turlock Average Price for Sale and Sold Short Sales

2010-10 Turlock Average Price for Sale and Sold Short Sales

2010-10 Turlock Months of Inventory Short Sales

2010-10 Turlock Months of Inventory Short Sales

Is Freddie Mac a fat cat?

Are Fannie Mae and Freddie Mac, the enormous Government Sponsored Enterprises (GSEs) that purchased about three quarters of the total single-family mortgages in the United States, about to step into the repurchase litigation fray?

If so, it might be very frightening news indeed for the lenders potentially on the hook to repurchase the securities they sold to the GSE’s.

First, a little background.

From the RealtyTrac article, a primer on Fannie May and Freddie Mac:

“They are special corporate concoctions at the heart of the ‘secondary’ market, an electronic trading post where the GSEs buy loans from local lenders, package the mortgages into securities, and then sell the securities they created to investors. The continued functioning of the secondary market is a big deal because about 75 percent of all single-family mortgage originations are purchased by the GSEs.”

Read More….

Analysis by Jeff Green, Short Sale REALTOR

This looks like a disaster ready to happen.  IF it does Stockton and Modesto home prices could plumet into a free fall.

RealtyTrac states:

• The Federal Housing Finance Agency (FHFA) says Fannie Mae and Freddie Mac have borrowed $148 billion to date from the Treasury but that additional draws could range “from $221 billion to $363 billion through 2013.”
• Credit Suisse says Fannie Mae and Freddie Mac could face $321 billion in losses if home values decline by 10 percent in a year, are flat the next year and rise 3 percent annually thereafter. Of course, if things don’t go so well then the losses could amount to $448 billion.
• Standard & Poor’s says “the ultimate taxpayer cost to resolve Fannie Mae and Freddie Mac could reach $280 billion, including the

$148 billion already invested — money largely spent to make good on loans gone bad.” Things could get worse, however. S&P says that $280 billion “could swell to $685 billion, by our estimate, with the establishment of a new entity to replace Fannie and Freddie that the government would initially capitalize.”

2010-10 Tracy For Sale vs Sold Short Sales

2010-10 Tracy For Sale vs Sold Short Sales

More Graphs….

2010-10 Tracy Average Price per Square Foot Short Sales

2010-10 Tracy Average Price per Square Foot Short Sales

2010-10 Tracy Days on Market Sold vs List Price Percent Short Sales

2010-10 Tracy Days on Market Sold vs List Price Percent Short Sales

2010-10 Tracy Average Price for Sale and Sold Short Sales

2010-10 Tracy Average Price for Sale and Sold Short Sales

2010-10 Tracy Months of Inventory Short Sales

2010-10 Tracy Months of Inventory Short Sales

The survey attributed this jump to the amount of distressed properties on the market being purchased and a decrease in the number of first-time homebuyers. Distressed properties are more likely to be bought with cash because they are at a lower valuation and don’t require as much financing, and first-time homebuyers do not typically have enough cash on hand to buy homes without financing.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

This trend illustrates a lack of consumer confidence as people are storing money in real estate rather than banks.  The trend toward investor purchasing of is up with less first time home buyers purchasing.  If this continues this will be bad news for the economy as home ownership by families and individuals stimulates the economy and provides stability in local markets.  If housing trends toward a renter market, neighborhoods tend to have more transition and less after purchase investment, for improvements, is made into local housing stock.  This has negative trickle down consequences. Services and business who would benefit from activities like home improvement projects see a drop in demand.  This is especially true if large amounts of properties are purchased by out of area or foreign investors. Landlords simply do not put as much money into a property as a home owner.   In the Stockton and Modesto area we are seeing this trend in play.  If the ratio of property ownership does not become dramatically skewed toward investors there will be little consequence to this trend.  If investor ownership spikes it may not bode well for local businesses and contractors.

2010-10 Salida For Sale vs Sold Short Sales

2010-10 Salida For Sale vs Sold Short Sales

More Graphs….

2010-10 Salida Average Price per Square Foot Short Sales

2010-10 Salida Average Price per Square Foot Short Sales

2010-10 Salida Days on Market Sold vs List Price Percent Short Sales

2010-10 Salida Days on Market Sold vs List Price Percent Short Sales

2010-10 Salida Average Price for Sale and Sold Short Sales

2010-10 Salida Average Price for Sale and Sold Short Sales

2010-10 Salida Months of Inventory Short Sales

2010-10 Salida Months of Inventory Short Sales

“At a time when many Americans are struggling to pay their mortgages, peddlers of so-called mortgage relief services have taken hundreds of millions of dollars from hundreds of thousands of homeowners without ever delivering results,”  FTC Chairman Jon Leibowitz said.  ”By banning providers of these services from collecting fees until the customer is satisfied with the results, this rule will protect consumers from being victimized by these scams.”

Read More….

Analysis by Jeff Green, Short Sale REALTOR

This is good news…hopefully it will further remove those cruds who take people’s money and don’t provide service.  I have talked to many people who have paid upfront money for short sale or loan modification services and were then told that they could not get the job done.  The home owner was told it was the bank’s fault.  With no way to verify the servicer’s claims  the home owner is often pushed right off the foreclosure cliff.  To add insult to injury these home owners almost always lose the money they paid for the loan modification and/or short sale “services.”  Find out more about our free loan modification help by calling or emailing our office.

2010-10 Stockton For Sale vs Sold Short Sales

2010-10 Stockton For Sale vs Sold Short Sales

More Graphs….

2010-10 Stockton Average Price per Square Foot Short Sales

2010-10 Stockton Average Price per Square Foot Short Sales

2010-10 Stockton Days on Market Sold vs List Price Percent Short Sales

2010-10 Stockton Days on Market Sold vs List Price Percent Short Sales

2010-10 Stockton Average Price for Sale and Sold Short Sales

2010-10 Stockton Average Price for Sale and Sold Short Sales

2010-10 Stockton Months of Inventory Short Sales

2010-10 Stockton Months of Inventory Short Sales

The Treasury started HAMP in March 2009 to provide incentives to servicers for the modification of loans on the verge of foreclosure. Through October, those servicers have started 1.4 million three-month trials and converted 519,648 of them into permanent status, though conversions have been going down in recent months.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

This article details how the Loan Modification process leaves many on the side lines without helping them.  The process seems to filter out a small percentage of home owners who can qualify.  What happens to the rest of the home owners?  Often they are pushed into foreclosure.  This has affected many Modesto and Stockton home owners. The time spent going though a loan modification has caused time to be wasted that could otherwise be used to process a short sale.  If you are doing a loan modification it may be in your best interest to list your house as a short sale while modifying the loan.  Most banks will not allow you to do a short sale and a loan modification at the same time.  The REALTOR can simply move the listing to “Temporarily Off Market” status.  If the loan modification fails  then the house can be quickly moved into a short sale. Contact our office to find out more about how short sales work.

Vicki Cox Golder, the President of the National Association of Realtors (NAR), issued the following statement regarding this initiative that aims to improve on the number of short sales being conducted across the United States: “Realtors from across the country are telling us that the current short sales process is time-consuming and cumbersome, discouraging buyers who would otherwise want to purchase a home in a short sale. As the leading advocate for home ownership and housing issues, NAR has been urging lenders and servicers to approve reasonable short sale offers that allow home owners to avoid foreclosure when a family is absolutely unable keep their home.”

Read More….

Analysis by Jeff Green, Short Sale REALTOR

Modesto and Stockton home owners who choose the short sale their homes are benefitting greatly from the continual efforts of the National Association of REALTORS .   NAR is concerned about making the process of short selling easier for the home owner so that it becomes a much more viable process.  Although there are complexities that can not be changed in the short sale process, all parties should do all that they can make the process more streamlined.  The liquidation of pre-foreclosure properties is one way to cure the current housing recession.

2010-10 Riverbank For Sale vs Sold Short Sales

2010-10 Riverbank For Sale vs Sold Short Sales

More Graphs….

2010-10 Riverbank Average Price per Square Foot Short Sales

2010-10 Riverbank Average Price per Square Foot Short Sales

2010-10 Riverbank Days on Market Sold vs List Price Percent Short Sales

2010-10 Riverbank Days on Market Sold vs List Price Percent Short Sales

2010-10 Riverbank Average Price for Sale and Sold Short Sales

2010-10 Riverbank Average Price for Sale and Sold Short Sales

2010-10 Riverbank Months of Inventory Short Sales

2010-10 Riverbank Months of Inventory Short Sales

CoreLogic said fraudsters are migrating toward higher risk, high-volume loan programs particularly the Federal Housing Administration, and the government’s Home Affordable Refinance Program. Short sales and REO sales continue to be a favorite among fraudsters as well.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

Unfortunately fraud abounds in good and bad markets.  If you live in Stockton or Modesto and are considering loan a modification or a short sale please stay engaged in the process, ask questions and make note of any strange requests or information.  As always we recommend consulting with an attorney and a CPA when taking any strategy related to foreclosure or the avoidance of foreclosure.  Call or email our office for a free confidential consultation.

2010-10 Ripon For Sale vs Sold Short Sales

2010-10 Ripon For Sale vs Sold Short Sales

More Graphs….

2010-10 Ripon Average Price per Square Foot Short Sales

2010-10 Ripon Average Price per Square Foot Short Sales

2010-10 Ripon Days on Market Sold vs List Price Percent Short Sales

2010-10 Ripon Days on Market Sold vs List Price Percent Short Sales

2010-10 Ripon Average Price for Sale and Sold Short sales

2010-10 Ripon Average Price for Sale and Sold Short sales

2010-10 Ripon Months of Inventory Short Sales

2010-10 Ripon Months of Inventory Short Sales

2010-10 Patterson For Sale vs Sold Short Sales

2010-10 Patterson For Sale vs Sold Short Sales

More Graphs….

2010-10 Patterson Average Price per Square Foot Short Sales

2010-10 Patterson Average Price per Square Foot Short Sales

2010-10 Patterson Days on Market Sold vs List Price Percent Short Sales

2010-10 Patterson Days on Market Sold vs List Price Percent Short Sales

2010-10 Patterson Average Price for Sale and Sold Short Sales

2010-10 Patterson Average Price for Sale and Sold Short Sales

2010-10 Patterson Months of Inventory Short Sales

2010-10 Patterson Months of Inventory Short Sales

“The foreclosures have created extra competition for regular home sellers,” said Carolina Zeeb, vice president of the Capital Area Real Estate Investors Association. “It means people are having to sell lower.”

The recent foreclosure paperwork controversy also may cause other market changes. Joe Murin, chairman of the Collingwood Group, a Washington real estate advisory firm, said it will likely delay foreclosures from getting to the market and, as a result, prolong the time to stabilization and economic recovery.

“We will likely not see the bottom of the tub for another three to four quarters,” he said. “The underlying issue with the foreclosure scandal is an antiquated processing system that is not designed to handle this kind of foreclosure load.”

Read More….

Analysis by Jeff Green, Short Sale REALTOR

The critical issue for Stockton and Modesto home owners who are considering a short sale is supply and demand.  If the bank moratorium on foreclosures thin out the market for a while we will also see a bubble of listed homes when the moratorium lifts.  If you are considering a short sale, it would be better to list a home for sale now.  If the inventory goes down your house will sell easier.  When the moratorium ends it might be more difficult to sell.  We will watch and report on this trend.

2010-10 Mountain House For Sale vs Sold Short Sales

2010-10 Mountain House For Sale vs Sold Short Sales

More Graphs….

2010-10 Mountain House Average Price per Square Foot Short Sales

2010-10 Mountain House Average Price per Square Foot Short Sales

2010-10 Mountain House Days on Market Sold vs List Price Percent Short Sales

2010-10 Mountain House Days on Market Sold vs List Price Percent Short Sales

2010-10 Mountain House Average Price for Sale and Sold Short Sales

2010-10 Mountain House Months of Inventory Short Sales

2010-10 Mountain House Months of Inventory Short Sales

Could this be your Robo Signer?

The “robo-signing” foreclosure documentation scandal could make it easier for financially distressed homeowners to get a loan modification – if it doesn’t throw a wrench into the entire process first.

The Congressional Oversight Panel’s (COP) newly released report on the robo-signing controversy notes that straightening out the foreclosure documentation mess could make it more expensive for banks to pursue foreclosures. That could make banks more willing to grant loan modifications and on more favorable terms to at-risk borrowers.

At the same time, the mortgage documentation problems revealed by the scandal could undermine the loan modification process itself, including the government’s Home Affordable Modification Program (HAMP) by calling into question the right of mortgage servicers to grant loan modifications in the first place.

Read More….

Analysis by Jeff Green, REALTOR

The problem with “Robo-Signing” is a result two things.  First banks trying to squeeze too much activity into their systems without increasing the amount of staff.  Second, it appears that some staff are not properly monitored so they are taking short cuts if they can get away with them.  What can Stockton and Modesto home owners do?  Keep a close eye on the process and get as much information as possible in writing from the bank.  If you have questions or think you might have been Robo-Signed then call or email our office.

2010-10 Oakdale For Sale vs Sold Short Sales

2010-10 Oakdale For Sale vs Sold Short Sales

More Graphs….

2010-10 Oakdale Average Price per Square Foot Short Sales

2010-10 Oakdale Average Price per Square Foot Short Sales

2010-10 Oakdale Days on Market Sold vs List Price Percent Short Sales

2010-10 Oakdale Days on Market Sold vs List Price Percent Short Sales

2010-10 Oakdale Average Price for Sale and Sold Short Sales

2010-10 Oakdale Average Price for Sale and Sold Short Sales

2010-10 Oakdale Months of Inventory Short Sales

2010-10 Oakdale Months of Inventory Short Sales

A recent Treasury Department report summarizing TARP spending put the total at $600 million through October.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

My analysis of this problem is simple.  Government systems and bureaucracy are gumming up the works.

Lawsuits have proliferated this year, filed by homeowners desperately trying to hang onto their homes, and who say loan servicers lied to them, gave them erroneous information and lost their paperwork as they tried to modify their loans.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

Here’s what people are complaining about when it comes to a loan modification:

• Incompetence and lack of information by those who answer the phone at their bank.
• Losing of paperwork.
• Being told one thing on one call and the opposite  on the next call.
• Loan payments offered that are higher than their current payment.
• No notification that their loan modification was rejected.  They discover this cruel fact when a notice of trustee sale is placed on their door.

Not everyone who goes through a loan modification has these complaints.  These are just some of the common ones that I have heard.  If you need free loan modification help please contact us.

2010-10 Newman For Sale vs Sold Short Sales

2010-10 Newman For Sale vs Sold Short Sales

More Graphs….

2010-10 Newman Average Price per Square Foot Short Sales

2010-10 Newman Average Price per Square Foot Short Sales

2010-10 Newman Days on Market Sold vs List Price Percent Short Sales

2010-10 Newman Days on Market Sold vs List Price Percent Short Sales

2010-10 Newman Average Price for Sale and Sold Short Sales

2010-10 Newman Average Price for Sale and Sold Short Sales

2010-10 Newman Months of Inventory Short Sales

2010-10 Newman Months of Inventory Short Sales

2010-10 Manteca For Sale vs Sold Short Sales

More Graphs….

2010-10 Manteca Average Price per Square Foot Short Sales

2010-10 Manteca Average Price per Square Foot Short Sales

2010-10 Manteca Days on Market Sold vs List Price Percent Short Sales

2010-10 Manteca Days on Market Sold vs List Price Percent Short Sales

2010-10 Manteca Average Price for Sale and Sold Short Sales

2010-10 Manteca Average Price for Sale and Sold Short Sales

2010-10 Manteca Months of Inventory Short Sales

2010-10 Manteca Months of Inventory Short Sales

In an exclusive interview with REO Insider, Vernon said the bank pre-screened these borrowers who have been considered for a modification under the Home Affordable Modification Program (HAMP) and a short sale under the Home Affordable Foreclosure Alternatives (HAFA) program. They have either fallen out of both programs or failed to qualify.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

This looks like a positive streamlined program.  If it works and is available on a larger scale it should prove very helpful for those who wish to do a short sale in Stockton an Modesto.

2010-10 Lathrop For Sale vs Sold Short Sales

2010-10 Lathrop For Sale vs Sold Short Sales

More Graphs….

2010-10 Lathrop Average Price per Square Foot Short Sales

2010-10 Lathrop Average Price per Square Foot Short Sales

2010-10 Lathrop Days on Market Sold vs List Price Percent Short Sales

2010-10 Lathrop Days on Market Sold vs List Price Percent Short Sales

2010-10 Lathrop Average Price for Sale and Sold Short Sales

2010-10 Lathrop Average Price for Sale and Sold Short Sales

2010-10 Lathrop Months of Inventory Short Sales

2010-10 Lathrop Months of Inventory Short Sales

Greed?

RISMEDIA, November 11, 2010—Realtors gleaned inside knowledge on the efforts being made to improve the short sale process through the Home Affordable Foreclosure Alternatives Program at the 2010 REALTORS® Conference & Expo. HAFA was intended to help homeowners who are unable to keep their home under the Making Home Affordable Modification Program avoid foreclosure by streamlining the short sales process and providing incentives to lenders that complete short sales. According to the National Association of Realtors’ most recent Realtors Confidence Index, 12% of all recent home buyers purchased their home through a short sale.

“Realtors from across the country are telling us that the current short sales process is time-consuming and cumbersome, discouraging buyers who would otherwise want to purchase a home in a short sale,” said NAR President Vicki Cox Golder, owner of a real estate company in Tucson, Ariz. “As the leading advocate for home ownership and housing issues, NAR has been urging lenders and servicers to approve reasonable short sale offers that allow homeowners to avoid foreclosure when a family is absolutely unable keep their home.”

Read More….

Analysis by Jeff Green, Short Sale REALTOR

Streamlining short sales is a great idea, but will this effort to do so work?  Many of the issues in processing a short sale are not even with the bank but with the investor behind the loan.  Ridiculous requests by investors often kill a short sale that has every element of success.  Perhaps the effort on streamlining should be directed to educate investors who are behind defaulted loans.

2010-10 Hughson For Sale vs Sold Short Sales

2010-10 Hughson For Sale vs Sold Short Sales

More Graphs….

2010-10 Hughson Average Price per Square Foot Short Sales

2010-10 Hughson Average Price per Square Foot Short Sales

2010-10 Hughson Days on Market Sold vs List Price Percent Short Sales

2010-10 Hughson Days on Market Sold vs List Price Percent Short Sales

2010-10 Hughson Average Price for Sale and Sold Short Sales

2010-10 Hughson Average Price for Sale and Sold Short Sales

2010-10 Hughson Months of Inventory Short Sales

2010-10 Hughson Months of Inventory Short Sales

HAUP provides homeowners a forbearance of monthly mortgage payments, either reducing them or suspending them for at least three months. Servicers can extend the timeline depending on regulatory guidelines.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

This is another attempt by the government to solve the foreclosure crisis.  Unemployed people facing foreclosure may be able to save their homes.  Alternative2Foreclosure offers free loan modification help.

2010-10 Lodi For Sale vs Sold Short Sales

More Graphs….

2010-10 Lodi Average Price per Square Foot Short Sales

2010-10 Lodi Average Price per Square Foot Short Sales

2010-10 Lodi Days on Market Sold vs List Price Percent Short Sales

2010-10 Lodi Days on Market Sold vs List Price Percent Short Sales

2010-10 Lodi Average Price for Sale and Sold Short Sales

2010-10 Lodi Average Price for Sale and Sold Short Sales

2010-10 Lodi Months of Inventory Short Sales

2010-10 Lodi Months of Inventory Short Sales

Three bills moving through the state Assembly after passing the Senate would delay the start of the foreclosure process and limit lenders’ ability to force borrowers to cover the difference when their home is sold for less than the amount they owe on their loan.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

The grinding wheels of government are once again moving too slow and too late.  It is high time that something significant is done to stop the bleeding in today’s Central Valley housing market.  During this real estate recession many home owners have progressed from fear to apathy about their home ownership crisis.  A sense of hopelessness prevails in the living rooms of many under water  houses.  The situation in Stockton and Modesto has been labeled the worst in the U.S.   The needs of the average home owner are much greater here than just about anywhere in the nation.

Here’s my take on what needs to be done with government assistance:

• Long-term job creation through incentives for small and medium size businesses to relocate to the central valley.  This can be done through reduced taxes and expeditious plans to speed businesses through the red tape of beginning operations in our area.
• A neighbor stabilization program targeted toward commercial properties.  Rather than just make it easy for investors to buy residential properties, government should work toward stabilizing commercial properties.  This should be done with the goal of attracting operational businesses and start-ups that hire local labor into the commercial properties that are foreclosing and are vacant.
• Expedited measures to enable houses to sell quickly and thus clear the inventory and cause prices to trend up.  This will cause fewer people to bail out of their home in fear of never recovering their equity.  Special tax incentives should be offered to home buyers who purchase houses in areas with a high rate of foreclosure and depressed equity.

Our area can recover.  We simply need to shed the “one size fits all” mentality that is so common in government.  The solutions for Los Angeles or Dallas are not the same as what is needed here in the Central Valley.

2010-10 Modesto For Sale vs Sold Short Sales

2010-10 Modesto For Sale vs Sold Short Sales

More Graphs….

2010-10 Modesto Average Price per Square Foot Short Sales

2010-10 Modesto Days on Market Sold vs List Price Percent Short Sales

2010-10 Modesto Days on Market Sold vs List Price Percent Short Sales

2010-10 Modesto Average Price for Sale and Sold Short Sales

2010-10 Modesto Average Price for Sale and Sold Short Sales

2010-10 Modesto Months of Inventory Short Sales

2010-10 Modesto Months of Inventory Short Sales

Disciplinary actions taken by the DRE have risen 60% over the past three years. Over the past two fiscal years, the DRE took 1,712 actions which represent a 36% increase over the 1,258 actions taken in fiscal years 06/07 and 07/08. And, the trend is likely to continue as the DRE currently has nearly 5,400 open investigations.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

OUCH!!!!  Seems like when hard times arrive so do the crooks.  This is especially disheartening because bad people are taking advantage of people’s misery.

Here’s what to look for and what to avoid:

• Agents who try to push you into a transaction.
• Agents who do not encourage you to consider all options to deal with your issues.
• Agents who are say that their particular plan is the only way to avoid foreclosure.
• Agents who give tax and legal advice.

2010-10 Escalon For Sale vs Sold Short Sales

2010-10 Escalon For Sale vs Sold Short Sales

More Graphs….

2010-10 Escalon Average Price per Square Foot Short Sales

2010-10 Escalon Average Price per Square Foot Short Sales

2010-10 Escalon Days on Market Sold vs List Price Percent Short Sales

2010-10 Escalon Days on Market Sold vs List Price Percent Short Sales

2010-10 Escalon Average Price for Sale and Sold Short Sales

2010-10 Escalon Average Price for Sale and Sold Short Sales

2010-10 Escalon Months of Inventory Short Sales

2010-10 Escalon Months of Inventory Short Sales

The Federal Reserve’s quarterly survey of senior loan officers released yesterday provides additional fuel for demands by the National Association of Realtors urging lenders to change their lending policies to make it easier for qualified home buyers can become home owners.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

For Stockton and Modesto areas any effort on behalf of banks to make acquiring a mortgage more difficult is going to make the sale of houses and the general housing market even more challenged. We saw a huge influx of buyers into the market when the first time home buyer tax credit was available.  The market has since cooled. What’s next?  Either the process becomes harder for home buyers or sellers or it eases.  The trend appears to be toward further caution by banks to avoid lending money to people who may potentially foreclose on new loans.  Just as the banks swung too far in giving out “easy money” in the last decade, it appears that they have once again rode the pendulum to another extreme.  This is bad news for the housing market here locally, but good news for A+ credit or cash buyers as it will reduce competition in buying.  Tighter lending could eventually cause even lower prices if demand drops.

2010-10 Ceres For Sale vs Sold Short Sales

2010-10 Ceres For Sale vs Sold Short Sales

More Graphs….

2010-10 Ceres Average Price per Square Foot Short Sales

2010-10 Ceres Average Price per Square Foot Short Sales

2010-10 Ceres Days on Market Sold vs List Price Percent Short Sales

2010-10 Ceres Days on Market Sold vs List Price Percent Short Sales

2010-10 Ceres Average Price for Sale and Sold short Sales

2010-10 Ceres Average Price for Sale and Sold short Sales

2010-10 Ceres Months of Inventory Short Sales

2010-10 Ceres Months of Inventory Short Sales

Ben Hernandez, Senior Loan Officer - Scenic Oaks Funding

The foreclosure market and the short sale market are tied to bigger global financial issues.  The national jobless rate does not seem to affect our area since we are in a bubble of high unemployment.  If the jobless rate goes down nationally we can hope to see a domino effect here in our area.  We are currently not developing new major sources of employment in the Central Valley (Stockton and Modesto Region). This does not bode well for the strength of our housing market.  We should be in the same market for several months to come.  - Jeff Green

Ben Hernandez’s update:

Interest rates continue to increase; so far the fourth day in a row interest rates have climbed. The last three days the 10 yr note   yield has increased 17 bp and mortgage rates up about the same; add in the decline so far this morning, the 10 off 23 bp and mortgage rates down 18 to 20 basis points. The bond and mortgage markets were expecting the QE move would drive rates down and the markets were heavily long, now we know QE 2 isn’t going to push rates lower as widely expected and all those long positions are being closed out driving rates up quickly. Every technical indicator we apply to bond and mortgage markets are now bearish. The bond and mortgages markets opened weaker this morning but by 10:00 have re-gained the early losses.

The QE decision by the Fed is being criticized heavily around the world as unnecessary and an attempt to drive the dollar lower to increase US exports. Many finance ministers are worrying over a currency war with nations moving to lower their currencies to accomplish the same thing the Fed is doing. Haven’t heard this much strong criticism of a Fed decision in years.

The G-20 meeting is starting today in Seoul S Korea; the plan is to come up with a statement that pledges to refrain from currency manipulation and co-operate globally to coordinate currency values. Lots ways made of a G-20 meeting when world leaders gather; rancor and disagreements dominate the first day or two then at the end a photo op with all smiles and an agreement that will be trashed even before the leaders make it back to the homes. Nevertheless the markets do their lemming thing and view the meeting as more important than they usually end up to be.

Stronger economic data this morning on weekly jobless claims; claims fell 24K to 435K (forecasts were down 7K), continuing claims fell to 4.3 mil from 4.87 mil. Dropping below the pivotal 450K is nice to see but unemployment isn’t going to fall for at least the next year. Some see the decline below 450K as a turning point for new unemployment claims and tout the good news that only 435K filed for unemployment; hope does spring eternal.

The Sept trade deficit in the U.S. narrowed to $44.0 B more than forecast as a drop in the dollar pushed exports to the highest level in two years. In August the deficit was $46.5B and the forecast for Sept was $45B. Export demand has increased but we’re talking pennies. Import prices for October increased 0.9% and are up 3.6% yr/yr; the weaker dollar is making imports more costly.

The dollar advanced to a one-month high against the yen as an increase in Treasury yields is making assets denominated in the greenback more attractive to international investors. The euro touched a two-week low against the dollar on speculation banks in the region will struggle to raise funds as the European Central Bank removes stimulus measures. The British pound rose versus the dollar as the Bank of England said inflation is likely to remain above target. Currency traders continue to bet on further dollar weakness in the longer view.

The MBA today released its Weekly Mortgage Applications Survey for the week ending November 5, 2010. The Market Composite Index increased 5.8% The Refinance Index increased 6.0% from the previous week. The Purchase Index increased 5.5%. This is the third consecutive weekly increase in purchase applications. The unadjusted Purchase Index increased 3.1% compared with the previous week and was 33.9% higher than the same week one year ago. The four week moving average for the seasonally adjusted Market Index is down 1.9%. The refinance share of mortgage activity increased to 81.7% of total applications from 81.3% the previous week. The average contract interest rate for 30-year fixed-rate mortgages remained unchanged at 4.28%, with points decreasing to 1.05 from 1.07 (including the origination fee) for 80% loans. The average contract interest rate for 15-year fixed-rate remained unchanged at 3.64%, with points also remaining unchanged at 1.08 (including the origination fee) for 80% loans.

At 1:00 this afternoon Treasury will auction $16B of 30 yr bonds to complete the refunding.

At 2:00 the Oct Treasury deficit is expected at -$140B.

Contact Ben for more mortgage info: 1156 Scenic Dr. Suite 200 Modesto CA 95350 Direct: (209) 606-1651 Office: (209) 572-2301 x7614 Fax: (209) 572-2281 www.scenicoaks.net NMLS License# 253187 CA DRE License# 01383137

The Home Affordable Modification Program (HAMP) debuted in 2009 in response to a historic real estate and foreclosure crisis in the U.S. As a result, mortgage servicers were essentially required to consider mortgage loan modifications for certain qualified borrowers. Because the number of modification requests has been overwhelming, servicers typically grant a temporary modification first, and then review the homeowner’s application second. A temporary modification becomes permanent once the servicer evaluates the homeowner’s situation and approves the request.

Read More….

Analysis by Jeff Green, REALTOR

To many home owners this news is like placing a big stop sign in front of them. If you think you might qualify for a loan modification or any other way to prevent foreclosure you should definitely try.  There are success stories, you may be the next one.  If you can not do a loan modification, short sale is one other way to avoid foreclosure.

2010-09 Tracy For Sale vs Sold Short Sales

2010-09 Tracy For Sale vs Sold Short Sales

More Graphs….

2010-09 Tracy Average Price per Square Foot Short Sales

2010-09 Tracy Average Price per Square Foot Short Sales

2010-09 Tracy Days on Market Sold vs List Price Percent Short Sales

2010-09 Tracy Days on Market Sold vs List Price Percent Short Sales

2010-09 Tracy Average Price for Sale and Sold Short Sales

2010-09 Tracy Average Price for Sale and Sold Short Sales

2010-09 Tracy Months of Inventory Short Sales

2010-09 Tracy Months of Inventory Short Sales

Mortgage information is critical to the Short Sale market because it affects how quickly properties can be sold.  If you are considering purchasing a short sale or other type of home please contact Ben Hernandez.  Please see this important update from Ben Hernandez:

—

Ben Hernandez, Senior Loan Officer - Scenic Oaks Funding

 

Treasuries and mortgages opened flat this morning; however in very early trading in Europe the 10 yr note was stronger but drifted back as the US markets opened. Still no buying interest on the QE move and continuing to confuse many. The easing move hasn’t and won’t likely do what most thought when the Fed said it would add more treasuries to its balance sheet with $600B more over the next six months. After a couple of weeks of enthusiasm that the easing move would drive down mortgage rates and treasuries it faded away and interest rates have not seen much change going back to 9/21 when the FOMC telegraphed the easing. So what good has it done? So far very little.

The economy is slooowly improving, like the snail crawling through syrup, with interest rates at 50 year lows investors are finding greener grasses in equities and commodities. With comments from the Fed that it wants the inflation level to increase about 1.0% frm the present level to ward off deflation, it is becoming clear the long end of the rate curve is not going to bite on the easing. The initial thought when the Fed said it was prepared to buy more assets was that the Fed would buy longer dated treasuries; the Fed has implied the buying will be at the so-called belly of the curve, 3s to 7s with a minor amount in 10s. Of course the Fed can change at anytime and move more to the long end, but that isn’t likely in the near term. The long end including mortgages are being held ion check over the inflation increases the Fed wants; with the 10 yr note at 2.55% a 1% increase in the level of inflation would provide a real rate of return to investors of 1.55%, we don’t believe there is any market for that potential return. As long as the economy is grinding forward, even at this snail’s pace long term interest rates are not likely to decline.

At 9:30 the DJIA opened unchanged, the 10 yr note +2/32 and mortgage prices +.03 to .06 basis points in price. FLAT!

At 10:00 this morning the only economic news; Sept wholesale inventories jumped 1.5% against estimates of +0.6%; sales up 0.4%. The inventory to sales ratio at 1.18 months compared to 1.17 months in August. August inventories were revised to +1.2% from +0.8% originally reported. No reaction to the report but sales are lagging, building inventories seen as confidence in the recovery but with no job improvement buyers remain tepid.

Yesterday’s 3 yr note went off well; at 1:00 today Treasury will auction $24B of 10 yr notes. The auction today and tomorrow’s 30 yr auction may move the markets this afternoon pending the demand. Last month when Treasury auctioned a 30 yr bond not many actually showed up, sending the 30 yr yield rocketing higher. Markets have been treated to very strong demand for US treasuries for about two years, the soft demand for the 30 last month may signal demand is lessening. Today’s 10 yr is therefore more sensitive than has been the case. A weak bid will send prices lower and rates up. Keep focused at 1:00 to 1:30 this afternoon.

From a technical view both treasuries and mortgages are not moving much. The momentum oscillators we track are neutral, the range of trading in the last two weeks have been tied in a tight range. Today we won’t see much improvement until the results of the 10 yr auction are released at 1:00 pm, then only improve if the demand is strong.

Contact Ben for more mortgage info: 1156 Scenic Dr. Suite 200 Modesto CA 95350 Direct: (209) 606-1651 Office: (209) 572-2301 x7614 Fax: (209) 572-2281 www.scenicoaks.net  NMLS License# 253187  CA DRE License# 01383137

2010-09 Mountain House For Sales vs Sold Short Sales

2010-09 Mountain House For Sales vs Sold Short Sales

More Graphs….

2010-09 Mountain House Average Price per Square Foot Short Sales

2010-09 Mountain House Average Price per Square Foot Short Sales

2010-09 Mountain House Days on Market Sold vs List Price Percent Short Sales

2010-09 Mountain House Days on Market Sold vs List Price Percent Short Sales

2010-09 Mountain House Average Price for Sale and Sold Short Sales

2010-09 Mountain House Average Price for Sale and Sold Short Sales

2010-09 Mountain House Months of Inventory Short Sales

2010-09 Mountain House Months of Inventory Short Sales

Mortgage defaults in California have fallen to their lowest level in three years, market research group MDA DataQuick said Wednesday.

Some of the drop-off may reflect an increase in short sales, in which troubled homeowners sidestep the foreclosure process but still lose their homes. But experts said it’s also a sign of a housing market that’s genuinely improving.

Read More….

Analysis by Jeff Green, Short Sale REALTOR

These are interesting statistics but fail to take into account a the bubble that has occurred because two significant foreclosure alternatives.   Many Modesto and Stockton home owners are in some stage of loan modification or trial loan modification.  This slows the process of houses going into foreclosure. Another large group of people have protected their homes through bankruptcy.  While it is heartening to see the number of defaults decline, this may be a false read on our economy and maybe a temporary trend.  The true indices of a strong housing market in the Central Valley are a low unemployment and shortage of houses.  As many leave the area to find work in other job markets there is a widening vacancy rate in both rentals and owned dwellings.  This does not bode well for prices.

2010-09 Stockton For Sale vs Sold Short Sales

2010-09 Stockton For Sale vs Sold Short Sales

More Graphs….

2010-09 Stockton Average Price per Square Foot Short Sales

2010-09 Stockton Average Price per Square Foot Short Sales

2010-09 Stockton Days on Market Sold vs List Price Percent Short Sales

2010-09 Stockton Days on Market Sold vs List Price Percent Short Sales

2010-09 Stockton Average Price for Sale and Sold Short Sales

2010-09 Stockton Average Price for Sale and Sold Short Sales

2010-09 Stockton Months of Inventory Short Sales

2010-09 Stockton Months of Inventory Short Sales