Patti's Santa Cruz Real Estate Blog

Major news in the Santa CRuz County short sale and housing industry

Wed, 04 Apr 2012 15:01:48 -0700

Major news in the short sale and housing industry! On Friday, March 9, the Obama Administration announced updates to the Home Affordable Foreclosure Alternative (HAFA) program. Created in 2009, HAFA is a government-sponsored initiative assisting all Home Affordable Modification Program (HAMP) eligible homeowners in avoiding foreclosure through short sales and deed-in-lieus.

The HAFA updates will go into effect on June 1, 2012, and will allow more distressed homeowners to seek assistance. Most importantly, the deadline for submitting for HAFA eligibility will be extended a full year, from December 31, 2012, to December 31, 2013.

Other major changes from March's updates to the HAFA program include:

The removal of occupancy requirements. Previously, HAFA required homeowners to have lived in the property within the last 12 months.
$3,000 relocation incentives will be limited to properties occupied by an owner or tenant at the time of the short sale.
Mortgage payments will be allowed to exceed 31% of the homeowner's gross monthly income. This update will allow a homeowner to stay current on her mortgage and still qualify, minimizing the overall impact to her credit.
Secondary lienholders may receive up to a maximum of $8,500, up from $6,000 previously.
And one of the most dramatic changes: The Credit Bureau Reporting will be Account Status Code 13 (paid or closed account/zero balance) or 65 (account paid in full/a foreclosure was started), as applicable.

With these updates, a homeowner can be current on their mortgage, qualify for HAFA, continue to make their payments, and execute a short sale with minimum impact on their credit!

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

165 Northridge Drive Scotts Valley, CA

Sun, 25 Mar 2012 09:35:17 -0700

165 Northridge Drive

4 bedrooms EASY COMMUTE TO HWY 17 in Beautiful Glenwood Acres

PROPERTY DETAILS

$569,000

LISTING INFORMATION

MLS: 81204206
Bedrooms: 2
Full Baths: 0
Partial Baths: 0
Sq ft: 2228
Lot Size: 43,995
Style: Ranch
Garage: 2 Car
Heat Source: Gas
Taxes: $0.00

PROPERTY DESCRIPTION

$569000 with EASY COMMUTE TO HWY 17, Beautiful Glenwood Acres area with 1 Acre lot of Redwoods and Sun for a garden area. Wrap around decks, open beamed high ceilings, fireplace, floor to ceiling windows. 1st floor bedroom is suitable for different uses.

CONTACT INFORMATION

Patti Lyles
Century 21 Showcase, REALTORS®
P.O. Box 67275
Scotts Valley 95067

Phone: 831-335-2100
Fax:
http://www.sanlorenzovalleyrealestate.com/

ADDITIONAL IMAGES

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

300 Shady Lane in Boulder Creek, CA

Sun, 25 Mar 2012 08:41:47 -0700

300 Shady Lane

SNOOZE YOU LOSE - Small Window of opportunity

PROPERTY DETAILS

$300,000

LISTING INFORMATION

MLS: 81204885
Bedrooms: 3
Full Baths: 2
Partial Baths: 0
Sq ft: 2021
Style: Moder Victorian
Heat Source: Gas
Taxes: $0.00

PROPERTY DESCRIPTION

Renovated in 2004. Modern Victorian style on beautiful end-of-street lot with creek behind the house. Curved staircase, Stained glass, walnut flooring. Wedgewood stove, 2 Fireplaces, 1 in upstairs master bedroom and 1 in living room are double-sided. Multi-use Floor plan upstairs Master Bedroom currently used as apartment. Pictures were taken before occupied - clean up and will look this good again. NO SIGNAGE & DO NOT DISTURB OWNER/Occupants.

CONTACT INFORMATION

Patti Lyles
Century 21 Showcase, REALTORS®
P.O. Box 67275
Scotts Valley 95067

Phone: 831-335-2100
Fax:
http://www.sanlorenzovalleyrealestate.com/

ADDITIONAL IMAGES

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Preliminary Title Reports and what you should know in a Short Sale

Fri, 23 Mar 2012 09:27:12 -0700

If you are an agent in A SHORT SALE You Should Know what the Preliminary Titles says

I find that 80% of the agents I work with on a Short Sale never review the Preliminary Title.

After the buyer and seller have reached agreement, but before the close of escrow, the preliminary title report needs review. It’s not going to be one of the most riveting documents you’ll ever read. But you should examine the preliminary title report closely, as it’s one of the most important documents a buyer will receive.

Among dozens of documents that serve to disclose to the buyer important knowledge about the property, the preliminary title report documents ownership, vesting and detail regarding anything that is recorded against the property. For a buyer, the title report will reveal various liens, encroachments, easements and anything else recorded against the property. The title company compiles the report from a search of county records in order to issue title insurance, and any liens against the property are listed as “exceptions” to title insurance.

Here are three important pieces of the title report you should review carefully.

1. The Legal Description

The legal description is everything you won’t see in any Realtor® marketing or advertising. It’s the literal description of where the property is located and the boundaries of the property in relation to the nearby streets and intersections. In the case of a condominium or planned unit development (PUD), the legal description will include the property’s interest in any common areas, exclusive or non-exclusive easements, and details on any parking or storage that conveys with the property.

Here’s an example of a legal description from a preliminary title report of a property:

“Beginning at a point on the Westerly line of Fifth Avenue, distant thereon 250 feet Southerly from the Southerly line of Balboa Street; running thence Southerly along the Westerly line of Fifth Avenue 25 feet; thence at a right angle Westerly 120 feet,” and so on.

Legalese? Absolutely. But it’s precise, and necessary.

2. Property Taxes

Property taxes always show up as the primary “lien” on a title report. A property cannot be transferred to a new owner when any outstanding property taxes are due to the city, county or town. As the top lien, they will indicate whether taxes are due or paid in full. Taxes must be settled before any debt holder gets paid.

3. Mortgage Liens

Mortgage liens are generally listed directly below property taxes and they’re always ordered first, second, and third. The largest lien holder generally takes first position, though there are certain conditions where a secondary lien holder will be in first position. When a sale closes, the liens must be paid in the order that they appear on the title report. In the case of a “short” sale, there are not enough proceeds from the sale to pay off the property taxes and all of the lien holders. So one or more lenders will get “shorted” by the amount they’re owed. In order for the sale to close, the lender must agree to the short payoff

Though this list is in no way exclusive, there are a variety of other things that could show up on a title report outside of taxes and loans.

* Easements. If there’s an easement recorded against the property and another owner has access to the property via the easement, that would be recorded against the title report. This stays with the report until both parties agree to remove it. For more on this topic, read “What You Should Know About Easements and Rights-of-Way.”

* CC&Rs. In the case of a condo or PUD, there are Covenants, Conditions and Restrictions (CC&Rs), which are recorded against the property. Any new buyer is buying the condo subject to the rules and regulations documented in the CC&Rs. This is why it’s important for potential buyers to pull these from the report and review them. Once you’re the owner, you’re subject to those rules.

* Restrictions, historic oversights, planning requirements. From time to time, there will be items on the preliminary title report that aren’t run of the mill. If the home is located in a historic district and therefore subject to the rules and restrictions of that district, it will show up on the title. In this case, if there are restrictions about changing the facade of a house or requirements that facade alterations comply with a local historical oversight committee led by the local planning department, a potential buyer needs to know this.

The Last Word on Preliminary Title Documents

As a potential buyer, you and your agent or real estate attorney should scrutinize the preliminary title report. You want the title to be delivered as clean as possible. If the property is subject to special items, or there are issues on the title that would affect your homeownership, you need to know and understand them thoroughly before you close.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Credit After Santa Cruz Short Sale

Wed, 30 Nov 2011 10:07:33 -0800

Here is what our State legal services posted about your question:

Credit After Foreclosure, Bankruptcy, or Short Sale

Member Legal Services
Tel (213) 739-8200
Fax (213) 480-7724
Aug. 4, 2010 (revised)

One of the concerns a consumer has after experiencing a bankruptcy, foreclosure, or short sale (referred to as a "preforeclosure sale" by Fannie Mae when the owner is in default) is the ability to obtain credit to purchase another home. Fannie Mae has updated its credit guidelines in the FNMA Selling Guide, June 30, 2010. [ Note: This is a 1,234 page PDF document that takes a long time to download.] This legal article summarizes those guidelines in Part I. In addition, since lenders use FICO scores in order to determine the creditworthiness of a borrower, this article covers the impact of a bankruptcy, foreclosure or short sale on FICO scores in Part II.

I. Fannie Mae Credit Guidelines

A. Credit after Foreclosure

Q 1. How long is the time period after a foreclosure before a consumer can be eligible to obtain credit to purchase a home?

A Seven years from the date the foreclosure sale was completed as reported on the credit report or other foreclosure documents provided by the borrower. See Question 2 below for exceptions.

(Source: FNMA Selling Guide, 6-30-10 at 426 )

Q 2. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the foreclosure?

A Yes. The borrower may again be eligible for a loan three years from the date the foreclosure sale was completed if the borrower has "extenutating circumstances" as defined in Question 3.

Additional requirements that apply after 3 years and up to 7 years following the completion date are as follows:

· The purchase must be of a principal residence. Purchase of a second home or investment property is not permitted until the seven-year waiting period has elapsed.

· The consumer is limited to a maximum loan to value ratio of 90 percent. If the Eligibility Matrix (https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf ) sets forth a lower maximum loan-to-value ratio for the transaction at hand, then the consumer is limited to the lower maximum loan-to-value ratio.

· Limited cash-out refinances are permitted for all occupancy types. (Cash-out refinances are not permitted until a seven-year waiting period has elapsed.)

(Source: FNMA Selling Guide, 6-30-10 at 426-7 .)

Q 3. What are"extenuating circumstances"?

A Fannie Mae describes "extenuating circumstances" as follows:

Extenuating circumstances are nonrecurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.

If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower's claim. Examples of documentation that can be used to support extenuating circumstances include documents that confirm the event (such as a copy of a divorce decree, medical bills, notice of job layoff, job severance papers, etc.) and documents that illustrate factors that contributed to the borrower's inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, listing agreements, lease agreements, tax returns (e.g., covering the periods prior to, during, and after a loss of employment).

The lender must obtain a letter from the borrower explaining the relevance of the documentation. The letter must support the claims of extenuating circumstances, confirm the nature of the event that led to the bankruptcy or foreclosure-related action, and illustrate the borrower had no reasonable options other than to default on his or her financial obligations.

(Source: FNMA Selling Guide, 6-30-10, 6-30-10 at 429 .)

Q 4. What are the requirements to re-establish a credit history after a foreclosure?

A After a foreclosure, a credit history must meet the following requirements to be considered re-established:

• The elapsed time and the related requirements are met (as discussed in this article).

• The loan receives a recommendation from Desktop Underwriter (an automated underwriting system) that is acceptable for delivery to Fannie Mae. If manually underwritten, then the loan must meet the minimum credit score requirements based on the parameters of the loan and the established eligibility requirements.

• The borrower has traditional credit as outlined in the Selling Guide, B3-5.3, Traditional Credit History (https://www.efanniemae.com/sf/guides/ssg/sg/pdf/sel043010.pdf). Nontraditional credit or “thin files” are not acceptable. A “thin file” exists where the borrower does not have a sufficient number of credit references to develop a traditional credit report.

(Source: FNMA Selling Guide, 6-30-10, 6-30-10 at 428).

B. Credit after Deed-in-Lieu (DIL) of Foreclosure

Q 5. How long is the time period after a deed-in-lieu of foreclosure before a consumer can be eligible to obtain credit to purchase a property?

A After two years from the date the deed in lieu was executed, but the consumer is limited to a maximum loan-to-value ratio of 80 percent. If the Eligibility Matrix (https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf) sets forth a lower maximum loan-to-value ratio for the transaction at hand, then the consumer is limited to the lower maximum loan-to-value ratio.

After four years, the consumer is limited to a maximum loan to value ratio of 90 percent. If the Eligibility Matrix (https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf) sets forth a lower maximum loan-to-value ratio for the transaction at hand, then the consumer is limited to the lower maximum loan-to-value ratio.

After seven years, the consumer is limited to the loan-to-value ratios set forth in the Eligibility Matrix. (https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf)

(Source: FNMA Selling Guide, 6-30-10, 6-30-10 at 427.)

Q 6. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the deed-in-lieu of foreclosure?

A Yes. Two years from the date the deed-in-lieu was executed, but the consumer is limited to a maximum loan-to-value ratio of 90 percent. If the Eligibility Matrix (https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf) sets forth a lower maximum loan-to-value ratio for the transaction at hand, then the consumer is limited to the lower maximum loan-to-value ratio.

(Source: FNMA Selling Guide, 6-30-10, 6-30-10 at 427.)

See Question 3 for the definition of "extenuating circumstances."

Q 7. Are deed-in-lieu of foreclosure actions identified on a credit report?

A A deed-in-lieu of foreclosure may be reported by a remarks code indicating a deed-in-lieu.

(Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 8. What are the requirements to re-establish a credit history after a deed-in-lieu of foreclosure?

A After a deed-in-lieu of foreclosure, a credit history must meet the following requirements to be considered re-established:

• The elapsed time and the related requirements are met (as discussed in this article).

(Source: FNMA Selling Guide, 6-30-10 at 428).

C. Credit after a Short Sale (Preforeclosure Sale)

Q 9. How long is the time period after a " preforeclosure sale" before a consumer can be eligible to obtain credit to purchase a property?

A After two years from the date the preforeclosure sale was completed, but the consumer is limited to a maximum loan-to-value ratio of 80 percent. If the Eligibility Matrix (https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf) sets forth a lower maximum loan-to-value ratio for the transaction at hand, then the consumer is limited to the lower maximum loan-to-value ratio.

After four years, the consumer is limited to a maximum loan to value ratio of 90 percent. If the Eligibility Matrix (https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf) sets forth a lower maximum loan-to-value ratio for the transaction at hand, then the consumer is limited to the lower maximum loan-to-value ratio.

After seven years, the consumer is limited to the loan-to-value ratios set forth in the Eligibility Matrix (https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf).

(Source: FNMA Selling Guide, 6-30-10, 6-30-10 at 427.)

Q 10. What is a "preforeclosure sale" mentioned in Question 9 and is that the same as a short sale?

A "A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satify the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer"

Although the terms preforeclosure sale and short sale have been used interchangeably, there is a significant difference for purposes of obtaining credit. For Fannie Mae purposes, a preforeclosure assumes that the borrower has been delinquent in paying his or her mortgage and the lender agrees to accept a lesser amount to avoid the time and expense of a foreclousre action. A short-sale, however, can also refer to situations in which the lender of the mortgage agrees to a payoff of a lesser amount than is actually owed, even on a current mortgage, to facilitate the sale of the property to a third party.

(Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 11. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the preforeclosure (short) sale?

A Yes. Two years from the date the preforeclosure sale was completed, but the consumer is limited to a maximum loan-to-value ratio of 90 percent. If the Eligibility Matrix (https://www.efanniemae.com/sf/refmaterials/eligibility/pdf/eligibilitymatrix.pdf) sets forth a lower maximum loan-to-value ratio for the transaction at hand, then the consumer is limited to the lower maximum loan-to-value ratio.

(Source: FNMA Selling Guide, 6-30-10 at 427 .)

Q 12. If a borrower sold his or her property as a short sale but was never delinquent on that mortgage and is now attempting to purchase a new primary residence, will Fannie Mae purchase the loan?

A The loan will be eligible for delivery to Fannie Mae provided that the borrower's previous mortgage history complies with Fannie Mae's excessive prior mortgage delinquency policy--that is the borrower does not have one or more 60-, 90-, 120-, or 150-day delinquencies reported within the 12 months prior to the credit report date--and the borrower has not entered into any agreement with the short sale lender to repay any amounts associated with the short sale, including a deficiency judgment.

(Source: FNMA Announcement 08-16 Q&A, 8-13-08 ; FNMA Selling Guide, Part X, Chapter 3, Section 302.09. .)

Q 13. Are preforeclosure sales (short sales) identified on a credit report?

A Preforeclosure sales may be reported as "paid in full" with a "settled for less than owed" remarks code, and the mortgage tradeline would indicate any recent delinquency.

(Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

D. Credit after a Bankruptcy

Q 14. How long is the time period after a Chapter 7 or Chapter 11 bankruptcy before a consumer can be eligible to obtain credit to purchase a property?

A Four years from the discharge or dismissal date of the bankruptcy action.

(Source: FNMA Selling Guide, 6-30-10 at 425 .)

Q 15. How long is the time period after a Chapter 13 bankruptcy before a consumer can be eligible to obtain credit to purchase a property?

A Two years from the discharge date and four years from the dismissal date. The shorter waiting period based on the discharge date recognizes that borrowers have already met a portion of the waiting period within the time needed for the successful completion of a Chapter 13 plan and subsequent discharge.

(Source: FNMA Selling Guide, 6-30-10 at 425 .)

Q 16. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the bankruptcy (all actions)?

A Yes. Two years from the discharge or dismissal; however, no exceptions are permitted to the 2-year time period after a Chapter 13 discharge.

(Source: FNMA Selling Guide, 6-30-10 at 425-6 .)

See Question 3 for the definition of "extenuating circumstances."

Q 17. How long is the time period after multiple bankruptcy filings before a consumer can be eligible to obtain credit to purchase a property?

A Five years from the most recent dismissal or discharge date for borrowers with more than one bankruptcy filing within the past 7 years.

(Source: FNMA Selling Guide, 6-30-10 at 426 .)

Q 18. What are “multiple bankruptcy filings”?

A This means an individual borrower has filed for bankruptcy more than one time. Two or more borrowers with individual bankruptcies are not cumulative, and do not constitute multiple bankruptcies. For example, if the borrower has one bankruptcy and the co-borrower has one bankruptcy, this is not considered a multiple bankruptcy.

(Source: FNMA Selling Guide, 6-30-10 at 426 .)

Q 19. Does a shorter time period apply if the borrower has "extenuating circumstances" that led to the multiple bankruptcies?

A Yes. Three years from the most recent discharge or dismissal date. The most recent bankruptcy filing must have been the result of extenuating circumstances.

(Source: FNMA Selling Guide, 6-30-10 at 426 .)

See Question 3 for the definition of "extenuating circumstances."

Q 20. What is the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy?

A Chapter 13 permits a borrower with a regular income to propose a plan to repay some or all of his or her obligations over a period of up to five years. A borrower who files a Chapter 7 is permitted to retain exempt assets and receive a discharge of the borrower's debts. Chapter 7 is a relatively quick liquidation process that is generally completed within 120 days. Chapter 7 cases are rarely dismissed.

(Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 21. What is the difference between a Chapter 13 dismissal and a Chapter 13 discharge?

A A borrower who files a Chapter 13 can dismiss the case at any time (voluntary dismissal) or the case may be dismissed by the court based on the borrower's failure to comply with the requirements of the Bankruptcy Code or to make the required payments. If the borrower who files a Chapter 13 case makes all of the payments required by the plan, the borrower receives a discharge at the end of the plan. A borrower who doesn't make all the payment required by the plan may still receive a discharge if the court finds, among other things, that the borrower made a certain amount of the payments and the borrower's failure to make all of the payments was due to circumstances beyond the borrower's control.

(Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 22. What are the requirements to re-establish a credit history?

A After a bankruptcy, a credit history must meet the following requirements to be considered re-established:

• The elapsed time and the related requirements are met (as discussed in this article).

(Source: FNMA Selling Guide, 6-30-10 at 428).

II. Bankruptcy, Foreclosure, and Short Sale and the Impact on a FICO ®Score

Q 23. What is a FICO® Score?

A A FICO® score is a number representing the creditworthiness of a person or the likelihood that person will pay his or her debts. The three credit reporting agencies, Equifax, Experian, and TransUnion, collect data about consumers in order to compile credit reports. The credit agencies use FICO® software to generate FICO® scores, which are then sold to lenders. Actually FICO® is just one of the several credit scoring systems available. The Fair Isaac Corporation (known as FICO®) created the first credit scoring system in 1958. Others are NextGen, VantageScore, and the CE Score. They all evaluate the creditworthiness of a borrower. However, FICO appears to be the most-used credit scoring system. A FICO® score is between 300 and 850. The higher the better the credit.

Each consumer has three credit scores at any given time for any given scoring model because the three credit agencies have their own databases, gather reports from different creditors, and receive information from creditors at different times.

Q 24. What factors go into determining a FICO® score?

A Credit scores are designed to measure the risk of default by taking into account various factors in a person's financial history. Although the exact formulas for calculating credit scores are closely-guarded secrets, FICO® has disclosed the following components and the approximate weighted contribution of each:

35% — Payment History – Late payments on bills, such as a mortgage, credit card or automobile loan, can cause a consumer’s FICO® score to drop. Paying bills as agreed over time will improve a consumer’s FICO® score.

30% — Credit Utilization - The ratio of current revolving debt (such as credit card balances) to the total available revolving credit (credit limits). Consumers can improve their FICO® scores by paying off debt and lowering their utilization ratio. The closing of existing revolving accounts will typically adversely affect this ratio and therefore have a negative impact on the FICO® score.

15% — Length of Credit History – As a consumer's credit history ages, assuming the consumer pays his or her bills, it can have a positive impact on the FICO® score.

10% — Types of Credit Used (installment, revolving, consumer finance) – Consumers can benefit by having a history of managing different types of credit.

10% — Recent search for credit and/or amount of credit obtained recently - Multiple credit inquiries for a consumer seeking to open new credit, such as credit cards, retail store accounts, and personal loans, can hurt an individual’s score. Applying for lots of new credit in a short period of time is also viewed as risky and can cause a drop in an individual’s score. However, individuals shopping for a mortgage or auto loan over a short period will likely not experience a decrease in their scores as a result of these types of inquiries.

(Source: http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx)

Q 25. How does a mortgage modification affect my FICO® score?

A FICO® credit scores are calculated from the information in consumer credit reports. Whether a loan modification affects the borrower's FICO® score depends on whether and how the lender chooses to report the event to the credit bureau, as well as on the person's overall credit profile. If a lender indicates to a credit bureau that the consumer has not made payments on a mortgage as originally agreed, that information on the consumer's credit report could cause the consumer's FICO® score to decrease or it could have little to no impact on the score.

(Source: http://www.myfico.com/crediteducation/questions/Mortgage_Modification.aspx)

Q 26. How does a bankruptcy affect my FICO® score?

A A bankruptcy is considered a very negative event regardless of the type. A bankruptcy is factored into your FICO® score until it is removed from your credit report. As long as the bankruptcy is listed on your credit report, it will be factored into your score. If you are considering bankruptcy as an alternative to foreclosure, keep in mind that it may have a greater impact on your FICO® score.

Typically, you can expect bankruptcies to impact your FICO® score, from the date filed, as follows:

(1) Chapter 11 and Chapter 7 bankruptcies up to 10 years.

(2) Completed Chapter 13 bankruptcies up to 7 years.

These time periods refer to the public record item associated with filing for bankruptcy. All of the individual accounts included in the bankruptcy should be removed from your credit report after 7 years.

(Source: http://www.myfico.com/crediteducation/Questions/Bankruptcy-Types.aspx)

If you plan to file a bankruptcy, here are some things you should do to make sure your creditors are accurately reporting the bankruptcy filing:

(1) Check your credit report to ensure that accounts that were not part of the bankruptcy filing are not being reported with a bankruptcy status.

(2) Make sure your bankruptcy is removed as soon as it is eligible to be "purged" from your credit report.

After a bankruptcy has been filed, the sooner you begin re-establishing credit in good standing, the sooner you can expect your FICO® score to rebound. A good practice is to obtain a secured credit card and continually make all of your payments on time. As time passes and the impact of the bankruptcy lessens, you might apply for a traditional credit card and also continually make all of your payments on time.

(Source: http://www.myfico.com/crediteducation/questions/Bankruptcy-Reach.aspx)

Q 27. How does a short sale, deed-in-lieu-of foreclosure. or a foreclosure affect my FICO® score?

A The alternatives to foreclosure, such as a deed-in-lieu of foreclosure or a short sale, aren’t any better as far as a FICO® score is concerned.

The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all "not paid as agreed" accounts, and considered the same by your FICO® score. This is not to say that these may not be better options for you from a financial or tax perspective, just that they will be considered no better or worse for your FICO® score.

If you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact on your FICO® score. While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has potential to have a greater negative impact on your FICO® score.

(Source: http://www.myfico.com/CreditEducation/Questions/foreclosure-alternatives-fico-score.aspx)

Q 28. What won't affect my FICO® score?

A The following information is not considered by the FICO® scoring formula:

^.Your race, color, religion, national origin, sex, or marital status

^.Your age

^.Your salary, occupation, title, employer, date employed, or employment history

^.Where you live

^.Any interest rate being charged on a particular credit card or other account

^.Certain types of inquiries (such as promotional, account review, insurance or employment-related inquiries)

^.Credit counseling

^.Any information not found in your credit report

^.Any information that is not proven to be predictive of future credit performance

(Source: http://myfico.custhelp.com/cgi-bin/myfico.cfg/php/enduser/std_adp.php?p_faqid=55)

Q 29. Where can I get more information?

A For a credit missteps comparison (i.e., affect on credit scores after certain events), go to http://www.myfico.com/crediteducation/questions/Credit_Problem_Comparison.aspx.

This legal article is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.'s legal products and services, please visit car.org.

Readers who require specific advice should consult an attorney. C.A.R. members requiring legal assistance may contact C.A.R.'s Member Legal Hotline at (213) 739-8282, Monday through Friday, 9 a.m. to 6 p.m. and Saturday, 10 a.m. to 2 p.m. C.A.R. members who are broker-owners, office managers, or Designated REALTORS® may contact the Member Legal Hotline at (213) 739-8350 to receive expedited service. Members may also submit online requests to speak with an attorney on the Member Legal Hotline by going to http://www.car.org/legal/legal-hotline-access/. Written correspondence should be addressed to:

CALIFORNIA ASSOCIATION OF REALTORS®
Member Legal Services
525 South Virgil Avenue
Los Angeles, CA 90020

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Research looks at how SHORT SALES affect scores

Wed, 30 Nov 2011 09:58:54 -0800

Research looks at how mortgage delinquencies affect scores

How much impact does a short sale have on FICO® Scores? How about a foreclosure? Since I frequently hear these questions from clients and others, I thought I’d share new FICO research that sheds light on this very subject.

The FICO study simulated various types of mortgage delinquencies on three representative credit bureau profiles of consumers scoring 680, 720 and 780, respectively. I say “representative profiles” because we focused on consumers whose credit characteristics (e.g., utilization, delinquency history, age of file) were typical of the three score points considered. All consumers had an active currently-paid-as-agreed mortgage on file.

Results are shown below. The first chart shows the impact on the score for each stage of delinquency, and the second shows how long it takes the score to fully “recover” after the fact.

All in all, we saw:

The magnitude of FICO® Score impact is highly dependent on the starting score.
There's no significant difference in score impact between short sale/deed-in-lieu/settlement and foreclosure.
While a score may begin to improve sooner, it could take up to 7-10 years to fully recover, assuming all other obligations are paid as agreed.
In general, the higher starting score, the longer it takes for the score to fully recover.
Even if there’s minimal difference in score impact between moderate and severe delinquencies, there may be significant difference in time required for the score to fully recover.

This study provides good benchmarks of score impact from mortgage delinquencies. However, it is important to note that research was done only on select consumer credit profiles. Given the wide range of credit profiles that exist, results may vary beyond what's in the charts above.

If you have questions about this research, I encourage you to post them here on the blog.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Your Reputation is Only as Good as The WORST Thing You’ve Ever Done

Thu, 10 Nov 2011 11:03:41 -0800

I loved this blog post and decided to spread it around and let it reach more people. I sometimes wonder why I bust my butt on the little things and this is why.

Via Howard and Susan Meyers (The Hudson Company Winnetka and North Shore):

Your Reputation is Only as Good as The WORST Thing You’ve Ever Done

    Yes, let me repeat that...Your reputation is only as good as the WORST thing you’ve ever done. This is true in all aspects of life. In the real estate business, your reputation is everything. It provides you a platform for maintaining and growing your business. It is what separates you from everyone else and allows you to shine above the crowd.
    It takes years to develop your reputation. Hours and hours of putting yourself out there and letting the world see how you can add value to their real estate experience. You have zero control over what people may say about you, so it is of the utmost importance that you do everything possible to insure that everyone who who comes into your world, views you in a very positive light. We are also viewed by the quality of service provided by the people we refer our clients to. In reality, it is generally only the referrals who don’t provide superior service that we are remembered by.
    We have all made mistakes and of course we learn from them, but it is how we respond to those mistakes that leaves the most important impression. If we make a mistake and don’t deal with it head on, it will be the thing that we are remembered for.
     At this moment, the headlines are filled with stories about two very significant situations that relate to some very horrible things that may or may not have been done by public figures. The people involved had spent their careers building a strong reputation of achievement and success. Some of the reputations that are being soiled are of people who were not directly involved in the accused acts. They are being judged for their inaction in reporting the deeds committed by others. Although no one has admitted or been convicted of doing anything wrong, it is likely that all of the individuals involved will be remembered for the worst elements of the current claims.

    Do the right thing and your reputation will take care of itself.


Susan and Howard Meyers

The Hudson Company

851 Spruce Street

Winnetka, Illinois 60093

847.778.1394

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

BLISS BLISS and more BLISS - 2 for the price of one

Sun, 02 Oct 2011 11:01:43 -0700

Patti Lyles | Century 21 Showcase, REALTORS ® | (831) 335-2100

2230 Glen Canyon, Scotts Valley, CA

Bliss just 4 minutes from downtown Scotts Valley 2 houses for the price of one that Seller May Carry

6BR/3+2BA Single Family House

offered at $1,099,000

Year Built	1987
Sq Footage	3,300
Bedrooms	6
Bathrooms	3 full, 2 partial
Floors	2
Parking	Unspecified
Lot Size	Unspecified
HOA/Maint	$0 per month

DESCRIPTION

BLISS just 4 minutes from downtown Scotts Valley. Ideal commute location. Contractor built house with an almost 2 acres lot, all that is listed plus so much more like Seller may carry
Main House = 4 bedroom 2.5 Bath with Attached 2 car garage with extra storage space
Bonus Unit = 2 bed 1 bath plus 2 car garage with great separation with huge yards
RV Parking, Pool & SPA, Wine Cellar, Built in BBQ

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Fireplace
- High/Vaulted ceiling	- Walk-in closet	- Hardwood floor
- Tile floor	- Family room	- Living room
- Bonus/Rec room	- Dining room	- Dishwasher
- Refrigerator	- Stove/Oven	- Stainless steel appliances
- Laundry area - inside	- Yard	- Swimming pool
- Jacuzzi/Whirlpool

ADDITIONAL PHOTOS

back	fron
2nd house	Living and Dining Room
Kitchen	Family
BBQ	Wine Cellar
GYM

Contact info:

Patti Lyles

Century 21 Showcase, REALTORS ®

(831) 335-2100

For sale by agent/broker

Equal Opportunity Housing

Posted: Oct 2, 2011, 4:54am PDT

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Yummy Good place to thrive 13190 IRWIN WAY

Sun, 02 Oct 2011 10:59:23 -0700

Patti Lyles | Century 21 Showcase, REALTORS ® | (831) 335-2100

13190 Irwin Way, Boulder Creek, CA

Motivated Really needs offer= Walk to Downtown Boulder Creek from this 2 bedroom plus a garage which is a rare find in

2BR/1BA Single Family House

offered at $238,000

Year Built	1968
Sq Footage	957
Bedrooms	2
Bathrooms	1 full, 0 partial
Floors	2
Parking	1 Car garage
Lot Size	7,405 sqft
HOA/Maint	$0 per month

see additional photos below

PROPERTY FEATURES

- Refrigerator	- Stainless steel appliances	- Washer
- Dryer

COMMUNITY FEATURES

- Garage parking

ADDITIONAL PHOTOS

Photo 1	Kitchen
Photo 1	2nd Bedroom
Bath

Contact info:

Patti Lyles

Century 21 Showcase, REALTORS ®

(831) 335-2100

For sale by agent/broker

Equal Opportunity Housing

Posted: Oct 2, 2011, 4:54am PDT

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

TREAT YOURSELF WELL Close to Seascape ClubResortVillage*BEACH

Sun, 02 Oct 2011 10:53:30 -0700

Patti Lyles | Century 21 Showcase, REALTORS ® | (831) 335-2100

113 Falmouth Ct, Aptos, CA

Look how close you are to Seascape Club *Resort *Villiage* BEACH

3BR/2BA Townhouse

offered at $585,000

Year Built	1981
Sq Footage	1,478
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	3
Parking	2 Car garage
Lot Size	871 sqft
HOA/Maint	$0 per month

DESCRIPTION

Treat Yourself Well

Across the street from Seascape Sports Club, Monterey Peninsula’s premiere health club! This is clearly a benefit to health conscious active buyers. The Club Features: spacious Jr. Olympic pool; childcare for members, and of course Tennis and Fitness. The Club will soon open its new 4000 Square Ft. Wellness Center building.

see additional photos below

PROPERTY FEATURES

- Fireplace	- High/Vaulted ceiling	- Walk-in closet
- Hardwood floor	- Refrigerator	- Stove/Oven
- Microwave	- Washer	- Dryer
- Laundry area - garage

COMMUNITY FEATURES

- Garage parking

ADDITIONAL PHOTOS

Photo 1	Photo 1
Photo 2	Photo 3
Photo 4	Photo 1
Photo 2	Photo 3

Contact info:

Patti Lyles

Century 21 Showcase, REALTORS ®

(831) 335-2100

For sale by agent/broker

Equal Opportunity Housing

Posted: Oct 2, 2011, 5:23am PDT

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

CHASE Home Affordable Foreclosure Alternatives Program (HAFA)

Sat, 20 Aug 2011 20:07:10 -0700

CHASE Home Affordable Foreclosure

The expansion of the government's Home Affordable program introduces new benefits for those homeowners who are no longer able to retain their home but would still like to avoid foreclosure. To qualify under Home Affordable Foreclosure Alternatives (HAFA), you must meet the eligibility criteria for the Home Affordable Modification Program (HAMP).

Why should I consider a CHASE HAFA short sale?

If you owe more on your mortgage than your home is worth and are unable to keep up with your mortgage payments, a HAFA-eligible short sale will:

Help you avoid foreclosure
Allow you to be "fully released" from any further liability on your mortgage
Provide financial assistance of $3,000 to help with relocation expenses

Am I eligible?

Homeowners who meet the eligibility requirements for the CHASE Home Affordable Modification program are eligible under the Home Affordable Foreclosure Alternative program, even if you have been unable to complete the Home Affordable modification process. Following are some general eligibility criteria:

You are facing hardship which prevents you from being able to maintain the monthly mortgage payments.
Your mortgage is on your primary residence
Your mortgage is a first lien mortgage originated on or before January 1, 2009
The outstanding balance of the loan is under $729,750 for single family property.
Your total monthly payment on your primary mortgage is more than 31% of the gross income of all borrowers on the mortgage.
You have already been considered for Home Affordable Modification and one of the following are true:

You do not qualify for a Trial Period Plan
You have not successfully completed the Trial Period Plan
You are delinquent on your Home Affordable Modification, missing at least two consecutive payments
You request a short sale or a deed-in-lieu

How is the CHASE HAFA program different than a regular short sale?

The HAFA program is part of President Obama's Home Affordable program. This provides new guidelines designed to simplify and speed up the short sale and deed-in-lieu process as well as offer homeowners some additional financial assistance. The eligibility criteria are based on the terms set forth under this government initiative. If you do not meet the eligibility criteria under HAFA, you may still be able to work with Chase on a short sale. We have adapted the same Short Sale Information Packet to meet the needs of all our customers interested in exploring short sale as a workout option.

Do I have to complete more paperwork?

The Chase Short Sale Information Packet provides full details of the information required. If you've recently completed the Chase loan modification request, some of the documentation related to the Request for Modification and Affidavit can be used, but we will still need new information specific to the short sale of your home.

What if I don't qualify under HAFA but am interested in a short sale?

Chase may still consider a regular short sale, even if you do not meet the HAFA eligibility requirements. To be considered for a short sale, complete the Short Sale Information Packet. Gather all information requested and sign in the required places. Submit by fax to the number indicated on the form or return it directly to your assigned homeownership specialist.

How is the value of my property determined?

Chase will independently establish property value and an approved list price. We'll provide you with instructions regarding the list price and any permissible price reductions. The home's selling price may be based on either:

an appraisal performed in accordance with standard appraisal practices
one or more Broker Price Opinions, of which must be dated within 120 days of the Short Sale Agreement

How long will the short sale process take?

You will be allowed 120 days to market and sell the property.
The property must be listed with a licensed real estate agent experienced in selling properties in the neighborhood.
Marketing of the property may run at the same time as the foreclosure process. No foreclosure sale can take place during the marketing period specified in the Short Sale Agreement as long as you're acting in good faith to sell the property.

Can I select my own real estate agent?

Yes.

Is there a fee to participate in HAFA?

No.

How long will this program be offered?

This program will accept eligible borrowers until December 31, 2012.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

The purchase contract clause about "the buyer has the right to "investigate" the property"...

Fri, 19 Aug 2011 00:03:38 -0700

Examining the contract

California Residential Purchase Agreement

PAGE 4 paragraphs 9 & 10

These paragraphs give the buyer the right to "investigate" the property and if they don’t like what they find can back out of the deal.

I call it the BUYERS Due Diligence Period

As the buyer, you are entitled to know everything about the property you are buying. This time period is sometimes called the Investigation Period. Unless otherwise noted in the contract the buyer has 17 days to remove investigation contingency, which allows the buyer and their home inspector(s) the opportunity to carefully look over the home for any potential structural or mechanical defects. My recommended inspections includes septic, home, termites, roof damage and checking for building code violations and a review of all that is in the Assessors records.

Before that 17 day period has expired, if the buyer does not like the results they generally can exercise their right not to move forward with the purchase of the property

If you are borrowing money, the lender will have their own requirement--starting with an appraisal. They will not loan money for a property that isn't worth the price.

All real estate transactions are “AS-IS”= The property is sold without warranties. This is consistent with common law inwhich no warranties are automatically included in a sale. However, the property is tobe transferred in substantially the same condition as on the date of acceptance of theoffer. Thus, the seller cannot neglect the property during escrow.

The seller remains obligated to disclose known adverse material facts. An important event is whether any insurance claims affecting the property have been filed within the past five years since homeowner insurance companies have the ability to check an industry database. Depending on the nature and types of such claims, the property may be uninsurable or insurance may be hard to get or expensive. The buyer also retains the right to inspect the property and, based upon those inspections, request that the seller makes repairs. If the seller is unwilling or unable, the buyer may cancel the contract.

The broker remains obligated to complete a reasonably competent and diligent visual inspection.

The seller is entitled to a copy of all reports, at no cost. The seller shall have utilities on for buyer's inspection.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Tips To Make Your Rental Application Stand Out

Thu, 18 Aug 2011 11:57:47 -0700

The rental market can be brutal, especially when a hot property that is well priced comes available. It is entirely too frustrating when a property rents out quickly. What can be worse is when an apartment for rent has a dozen other applications turned in and the property manager hasn’t made a decision yet on which one to go with.

So here are some tips to make your application stand out above all of the other applications:

1) Write legibly! It’s like wearing a suit to a job interview instead of wearing jeans. Make it stand out by making it easy to read and understand. A sharp-dressed application always gets the attention before the sloppy one.

2) Fill out the application completely. You may not know your previous landlord’s phone number from two years ago, but LOOK IT UP. Most landlords require a minimum of four years rental history. Your application will get passed over if the potential landlord has to do a lot of the leg-work in Googling and tracking down the required information.

3) Re-assure the potential/new landlord that you have all of your money (first month’s rent, security deposit and/or pet fee) ready to go now. Prove it to them that you have your ducks in a row and are serious about renting the property. Mention it when you turn in your application, and be sure to jot it in the notes section on the application.

4) Follow policy. You may not know what the property manager’s policy is or why, but it doesn’t matter. If they ask for an application fee, a copy of your driver’s license or the names of all the people living in the unit, then give them that information up front. Don’t question why they want it for, just do it. If you buck their system during the application process, chances are they might determine that you will buck their system when it comes to the lease, too. Your application will quickly get placed on the bottom of the pile if you don’t cooperate, or if the application is incomplete.

5) Do not hound the potential landlord or make a list of demands up front. Property managers process a lot of applications, maintenance requests, complaints, and inquiries day-in/day-out. Have some patience, and don’t leave 12 voice mail messages for them. However, don’t just turn in your application and then go silent. There is a fine line to walk in this, and most likely email is your best option. It can take approximately 24-48 business hours to process an application, assuming you have filled out the application completely (see point 2 mentioned above). If you haven’t heard back from them by the next business day or so, send a gentle (read: short, but sweet) email to the potential landlord expressing your interest in the property. Don’t overdo it and make your point quickly, they have a lot to do.

6) If you have Pets be proactive. Bring a Pet Addendum (see hypertext) and agree to an additional Pet deposit. Bring a photo and proof from your Veterinarian that your pet has up to date shots. http://www.totalrealestatesolutions.com/realestateforms/html/RentalPetAddendum1.html

Above all, keep your cool. If you show your frustration with the property manager’s policies and procedures, whether or not it’s justified, it will signal a red flag to them that you will most not likely cooperate with the lease agreement policies and procedures if you won’t do it now. Instead, impress them with having everything on your end done and organized, which ultimately makes it easy on them when it comes to making a decision on the right application to choose. Which, of course, is yours right?!

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Mortgage Servicing Litigation

Wed, 17 Aug 2011 21:11:55 -0700

What you need to know about Mortgage Servicing Litigation

Mortgage Servicing Litigation is the last avenue for more borrowers who believe they have a case.

Mortgage Litigation Report is something I keep an eye on. Mortgage servicing litigation has skyrocketed 88% in the 2011 first quarter. These figures were released last week in a report by MortgageDaily.com and law firm Patton Boggs LLP. Reasons given include all the robo-signing scandal uncovered last fall and all the media attention this received.

Frankly, I’m only surprised that increase wasn’t higher, given all that I have read about the robo-signing mess and the many cases uncovered by media around the country. Some of these banks even tried to foreclose on active duty military families when there’s a law expressing prohibiting this.

“We expect that all aspects of servicing litigation will remain active as state and federal regulators as well as financial institutions, investors’ bankruptcy trustees, and borrowers continually seek new avenues to pursue claims based on servicers’ conduct,” explained Patrick McManemin, a partner in Patton Boggs’ Dallas office.

Legitimacy of any claims aside (because I’m sure there’s a mix of legitimate and bogus claims), we are a litigation-happy society in the United States. I’ve made the claim before and I’ll say it again, the only ones who are going to get rich off robo-signing, botched loan modifications and foreclosures, are the attorneys.

Read the full report at:

http://www.mortgagedaily.com/MortgageLitigationReport.asp?spcode=pr

Mortgage Litigation news:

http://www.mortgagedaily.com/legal.asp?spcode=pr

If you are experiencing a problem with Loan Modification or Short Sale mishandled by the servicer you need to know about Mortgage Litigation Services

www.mortgagelitigationservices.com

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Forecast for future of Short Sales

Wed, 17 Aug 2011 20:20:11 -0700

Short sales will remain strong for the next several years as foreclosure inventories timelines grow even longer, according to the chief operating officer of Equator, a software platform for default servicers.

“Short sales will be very prominent over the next 2-3 years as foreclosure inventories increase and remain somewhat stagnant. The elongated foreclosure timelines coupled with improved processes and technology will lead to more short sales closing,” says John Vella, COO of Equator.

Equator reports some 775,000 real estate agents handling an average of 250,000 transactions per day access its platform.

Last week LPS reported the median foreclosure timeline now is 587 days. In May, CoreLogic predicted the number of short sales will increase 25 percent next year after tripling over the past two years.

New federal regulations that took effect April 10 are expected to add to the interest in short sales by removing barriers involving second liens. Prior to this change, secondary lien holders were unlikely to receive any portion of the proceeds of the sale. This likelihood was increased if the property was in a state of negative equity. The secondary lien holder could block the approval of the short sale by refusing signoff on zero pay-off.

Due to the change in the laws regulating short sales there are now incentives for secondary lien holders to approve the sales. There is also an incentive for the seller to pursue this option. Secondary lien holders will receive a portion of the sale proceeds; an amount of at least $3,000. They will also receive an additional $1,000 from the federal government and sellers will receive an incentive of $3,000 for relocation expenses.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Important New Policy Changes for HAFA Effective August 2011 !

Wed, 17 Aug 2011 13:01:30 -0700

Changes For The Treasury Department’s HAFA Program

On August 9, 2011, the Treasury Department issued Supplemental Directive 11-08 for its HAFA program. The new policy changes and clarifications of previous HAFA policies are as follows:

•Borrowers are currently provided with a 14-day period to respond to a servicer’s invitation to participate in the HAFA program. The 14 calendar day period response time is only intended to give the borrower a guaranteed minimum time period to respond to the servicer. It is not meant to that if the borrower elects to participate in HAFA after the 14-day period that they are not eligible. Servicers may consider a borrower for HAFA whether or not they respond within the 14-day period.

•Unless prohibited by investor rules, servicers should utilize the HAFA program rather than a lender’s or servicer’s proprietary short sale process in all cases where a short sale is approved by the servicer and the transaction meets the guidelines of the HAFA program.

•It is clarified that the aggregate cap of $6,000 that is available to satisfy subordinate liens applies only to subordinate liens that are secured by a mortgage on the subject property. The $6,000 cap is not applicable to non-mortgaged subordinate liens such as mechanics’ liens or homeowner association liens. Servicers are allowed to authorize any additional portion of the gross proceeds to be used as payment to the subordinate non-mortgage lienholders in exchange for a lien release and release of borrower liability. This means that more than $6,000 can be paid to subordinate liens as long as no more than $6,000 is paid to the mortgage liens.

•Before October 15, 2011, each servicer must develop and implement procedures that the servicer will follow to periodically reevaluate property value and to reconcile discrepancies between the servicer’s market value estimate or BPO and the market value data provided by the borrower or the borrower’s real estate broker.

•The term “Minimum Acceptable Net Proceeds” in a HAFA Short Sale Agreement does not really mean it is the minimum amount that must be netted from the short sale. The new supplemental directive clarifies that servicers are not prohibited from accepting a purchase offer that would result in net proceeds less than the previously stated minimum acceptable net proceeds if the servicer determines that the proposed sale is in the best interest of the investor.

•Borrowers may use their $3,000 relocation incentive to pay for transaction costs that the borrower has instructed the closing agent in writing to pay, such as the cost of legal representation, overdue utility bills or minor repairs identified during the property inspection. However, borrowers may not use the relocation incentive to pay for the release of subordinate or non-mortgage liens recorded against the property and borrowers may not be required by the servicer, as a condition of the sale, to utilize the relocation incentive to pay any transaction expenses.

•Servicers must, no later than October 15, 2011, complete and post on their websites a HAFA matrix explaining their HAFA program in a format that can be used to compare it with other servicers’ HAFA programs. The matrix is intended to assist the borrowers and their real estate agents in understanding any unique components of the particular servicer’s HAFA policy or any differences in the HAFA policy of a particular lender. The Treasury Department will post on the MakingHomeAffordable.gov website information for the public about the web location of each servicer’s HAFA matrix. This is intended to make it easy for borrowers and their agents to identify in advance any different requirements between the various servicers’ HAFA policies.

The intent of the new policies is to make the HAFA short sale process easier for borrowers and their agents by making the differing servicer policies more transparent, to allow more flexibility in how the borrower’s funds are dispersed and by providing the ability to pay additional funds to non-mortgage lienholders for lien releases. Hopefully, they will have that effect.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Bank of America NEWEST Program WIPES OUT Negative Mortgage Equity

Thu, 11 Aug 2011 13:36:44 -0700

Share this story from HuffingtonPost.com with everyone you know…this could be a rule changer for those BofA borrowers who qualify.

…Bank of America will soon be off the hook for mortgage abuses in exchange for a whole bunch of money. The money will be used for loan modifications and….mortgage debt forgiveness. Yes, you read that right…BofA will soon be announcing a new program to forgive underwater owners negative equity.

WASHINGTON — Federal and state prosecutors are in advanced negotiations with Bank of America in pursuit of a settlement that would forgive the bank for a broad range of past mortgage abuses in exchange for fines that would finance a significantly expanded relief program for struggling homeowners, according to three people with direct knowledge of the matter.

The negotiations are separate from ongoing talks between the nation’s five largest mortgage handlers and the U.S. Department of Justice, the Department of Housing and Urban Development and all 50 state attorneys general. Those talks, led by Justice and involving all five companies, are seeking a settlement to resolve allegations of past wrongdoing like so-called “robo-signing,” in exchange for lower payments and reduced mortgages for potentially millions of troubled borrowers.

But the options under discussion with Bank of America, the largest U.S. bank by assets, go beyond what’s on the table in the larger group talks. Justice, along with a small band of state legal officers, is pursuing an agreement that would have the bank forgive what participants described as a significant amount of mortgage principal owed by distressed borrowers in exchange for receiving an effective grant of immunity from government prosecution related to alleged mortgage and foreclosure wrongdoing.

Only a small, select group of states are involved in pursuing the side deal with Bank of America, sources said. The other banks targeted by the government — JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial — are engaged in similar individual negotiations with prosecutors. None of those talks are at such an advanced stage, though.

The agreement, if reached, could be used as a template for the other four banks. The state and federal prosecutors are operating on the assumption that if they could strike a deal with Bank of America — the nation’s largest mortgage servicer — that would compel the other large banks to go along or risk prosecution.

Participants described the talks as fluid. Remaining issues include the scope of the release and the breadth of borrower relief, sources said.

For example, it could involve a release from liability for alleged lending abuses; alleged failure to properly securitize home loans in accordance with state laws; alleged abuses of distressed borrowers who fell behind on their payments; alleged illegal behavior when foreclosing on those homeowners; immunity from suits involving a combination of those claims, or from all of them — an effective grant of immunity from prosecution.

Prosecutors are contemplating giving Bank of America this kind of a broad release — something not yet on the table for the other institutions, sources said — but in exchange for more money to be used to finance mortgage modifications for a targeted set of borrowers.

The bigger the release, the more money banks like BofA would be willing to shell out to lower payments, reduce outstanding amounts owed, and provide for borrowers to transition out of their homes and into rentals.

Of course, the flip side of that is the banks could largely escape prosecution of alleged widespread wrongdoing.

Other outstanding issues include whether government-controlled mortgage firms Fannie Mae and Freddie Mac are involved. The twin giants own or guarantee more than half of all outstanding home loans. But their federal regulator, the Federal Housing Finance Agency, has been reluctant to allow loans from Fannie or Freddie to be part of the deal, sources said. The two companies employed law firms that used robo-signers.

If an accord were reached, which participants stress is a ways away, borrowers that met the following criteria would be eligible for some kind of assistance:

· Their mortgages would have to either be owned by Bank of America or be serviced by the bank on behalf of private investors. Fannie or Freddie loans would not be eligible;

· A current principal balance of 1 million or less;

· The homes would have to be occupied by the owner, so no investor-owned properties;

· And the borrowers’ monthly mortgage obligation would have to comprise at least 25 percent of their monthly income.

Participants believe such a pool would lessen the risk posed by moral hazard, a scenario in which people escape consequences for destructive activity, thus encouraging more destructive activity in the future, sources said. Eligibility would also be limited to homeowners in distress, which can be defined by the number of days late a borrower is on his mortgage payments or whether their income is too low to support their payment obligations.

The program would in part build upon a deal reached earlier this year between Justice and Bank of America to settle allegations that the lender wrongfully foreclosed on active-duty members of the military, sources said.

An accord would provide a sense of finality to BofA’s shareholders, who have seen the value of their holdings erode over the past year as the bank’s mortgage-related losses have mounted. Shares are down 34 percent over the past year. By comparison, the 24-company KBW Bank Index, which tracks large banks like BofA, is down just 11 percent over the same time period.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Did HAFA Work for your client?

Thu, 11 Aug 2011 13:08:45 -0700

Lets start by answering the question..What is HAFA?:

Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took effect on April 5, 2010 and sunsets on December 31, 2012.
- Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
- Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
- Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
- Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
- Uses standard processes, documents, and timeframes/deadlines.
- Provides the following financial incentives:
  - $3,000 for borrower relocation assistance;
  - $1,500 for servicers to cover administrative and processing costs;
  - Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.
Now, lets review the bottom line facts….did HAFA Work?

1) Servicers completed 10,438 HAFA short sales since April 2010.

2) Up to June 2011, servicers started 21,412 short sales and Deeds in Lieu of Foreclosure.  A total of 10,754 were completed, up 25%.

3) JPMorgan Chase  completed nearly 3,600 through the program, 1,000 in June alone.

4) Wells Fargo  completed nearly 3,100, 700 in June.

5) Bank of America completed 1,873 HAFA transactions.

6) In 22% of the HAFA agreements started — equal to roughly 4,700 mortgages — the homeowner began a HAMP trial but later requested a HAFA agreement or was disqualified from HAMP.

7) According to a recent study there is nearly a 70% INCREASE in the number of homes considered to be part of the banks ‘Shadow Inventory’.

8) The average time a non-paying ‘home owner’ is able to occupy the property has increased to nearly 600 days nationally.

So, what do YOU think…did HAFA work? Share your comments…

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Mortgage Rate New All-Time Low 30-Year Fixed Falls Below 4 Percent

Thu, 11 Aug 2011 13:01:00 -0700

Fannie/Freddie downgraded this week, stock market tumbled, and the Fed’s promise to keep interest rates low until 2013, many have been left wondering what the impact will be on the housing market and, more specifically, how mortgage rates will change. As it turns out, stats shows that today’s 30-year fixed mortgage rate has taken a fall from Tuesday’s 9-month low of 4.14 percent to a new all-time low of 3.92 percent. This rate represents the first time the rate has dropped below 4 percent as well as the lowest rate recorded since April 2008. Prior to today, the lowest rate recorded was 4.07 percent on Nov. 9, 2010.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Mortgage Rates Reach Record Lows

Sun, 07 Aug 2011 13:10:52 -0700

Mortgage rates dropped sharply this week, possibly improving the purchasing power of many home buyers. The 30-year fixed-rate mortgage, the most popular choice among buyers, averaged 4.39 percent this week, its lowest average for 2011, Freddie Mac reported in its weekly mortgage market survey. The 15-year fixed-rate mortgage and the 5-year adjustable rate-mortgage also both reached new historical record lows.

Rates mostly dropped across the board amid signs of a weakening economy, Freddie Mac says.

"Treasury bond yields fell markedly after signs the economy was weaker than what markets had previously thought allowing fixed mortgage rates to follow this week with the 15-year fixed and 5-year ARM setting new historical lows,” says Frank Nothaft, chief economist at Freddie Mac.

Nothaft also noted some improvement in the housing market, however. "There were indications that the housing market is firming,” he says. Here’s a closer look at rates for the week ending Aug. 4:

30-year fixed-rate mortgages: averaged 4.39 percent, downfrom last week’s 4.55 percent average. A year ago at this time, 30-year rates averaged 4.49 percent.

15-year fixed-rate mortgages: averaged 3.54 percent, dropping from last week’s 3.66 percent average.Last year at this time, 15-year rates averaged 3.95 percent.

5-year adjustable-rate mortgages: averaged 3.18 percent this week, falling from last week’s 3.25 percent average. Last year at this time, 5-year ARMs averaged 3.63 percent.

1-year adjustable-rate mortgages: were the only ones on the rise last week, averaging 3.02 percent this week, which is up from last week’s 2.95 percent average. Last year at the time, 1-year ARMs averaged 3.55 percent.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Market Conditions Report for Santa Cruz, California

Sun, 07 Aug 2011 13:07:09 -0700

Sales of existing houses plunged by a record 27 percent in July as the effects of a government tax credit waned, showing a lack of jobs threatens to undermine the U.S. economic recovery.

Purchases plummeted to a 3.83 million annual pace, the lowest in a decade of record keeping and worse than the most pessimistic forecast of economists surveyed by Bloomberg News, figures from the National Association of Realtors showed today in Washington. Demand for single-family houses dropped to a 15- year low and the number of homes on the market swelled.

Stocks tumbled and Treasury securities rallied, sending yields on 10-year notes to the lowest in 17 months, on concern the industry at the heart of the financial crisis will lead the nation back into a recession. Recent reports on jobless claims and manufacturing point to a slowdown in growth that may prompt the Federal Reserve to consider additional moves to boost the economy.

“Today’s data do not bode well for home prices,” said Michelle Meyer, a senior economist at BofA Merrill Lynch Global Research in New York. “There is a decent chance we reach a new bottom for home prices. There’s going to be a prolonged, painful drop.”

The Standard & Poor’s 500 Index fell 1.5 percent to 1,051.87 at 4 p.m. in New York, the lowest close since July 6. The yield on the benchmark 10-year Treasury note dropped to 2.49 percent, while the two-year note yield touched a record-low 0.4542 percent.

Record Low

The pace of existing home sales is the slowest since comparable records began in 1999. The agents’ group revised the June sales figure down to 5.26 million from a previously reported 5.37 million.

Economists projected sales would fall 13 percent. Estimates in the Bloomberg survey of 74 economists ranged from 3.96 million to 5.3 million. Previously owned homes make up about 90 percent of the market.

Purchases of single-family homes also dropped 27 percent, the biggest one-month decrease in data going back to 1968. July’s 3.37 million annual rate was the lowest since May 1995.

Compared with a year earlier, existing home sales fell 26 percent before adjusting for seasonal patterns.

The median price increased 0.7 percent to $182,600 last month from July 2009.

Fed Bank of Chicago President Charles Evans today said that while the housing market and U.S. economy have shown signs of improvement, recovery isn’t yet assured.

Fed Action

“Although there are some signs of general economic recovery and some evidence of home-price stabilization, we are certainly not out of the woods,” Evans said in a speech in Indianapolis before the housing report. The recovery “seems to be extremely modest” and the central bank’s “accommodative policy is appropriate,” he said in reply to an audience question.

The number of previously owned homes on the market rose 2.5 percent to 3.98 million. At the current sales pace, it would take 12.5 months to sell those houses, the highest since at least 1999 and compared with 8.9 months in June. The months’ supply of single-family homes at 11.9 months was the highest since 1983, the NAR said.

“The problem with housing is there’s actually a lot of shadow inventory,” said Constance Hunter, chief economist at Aladdin Capital Management LLP in Stamford, Connecticut. “The Fed must enact a second quantitative easing strategy,” Hunter said, referring to additional central bank purchases of assets like Treasury securities to pump up the money supply and ease credit.

Broad-based Drop

Sales last month fell in all four U.S. regions, today’s report showed. Foreclosures accounted for 22 percent of total purchases in July, while short sales, where banks agree to take less than the value of the mortgage, made up another 10 percent, the NAR said.

Purchases will be “soft for at least two more months as the housing market works through the effects of the end of the tax credit,” Lawrence Yun, the group’s chief economist, told reporters at a press conference.

A government incentive of up to $8,000 boosted sales earlier in the year, pulling forward demand. Housing’s inability to build on the temporary boost generated by government assistance is one reason the economy is having trouble strengthening.

‘Excellent Pricing’

“Demand is low across the country,” Richard Dugas, chief executive officer at Pulte Group Inc., said in an Aug. 20 interview with Bloomberg Television. “You have record-low interest rates and excellent pricing, but consumer confidence eased. We really need the economy to improve and job creation to take hold before people feel comfortable stepping into a home.”

Pulte is the largest U.S. homebuilder by revenue.

Robert Shiller, a professor at Yale University and chief economist at MacroMarkets LLC in Madison, New Jersey, said the July sales plunge was “anomalous” because it came one month after the original deadline for closings to take advantage of the government tax credit. The deadline for closings was later extended until the end of September.

“Let’s not overreact to these latest sales numbers,” Shiller, co-creator of the S&P/Case-Shiller index of property values, said in an interview with Matt Miller on Bloomberg Television’s “Street Smart. “You can’t compare this number to the other existing sales numbers.”

Administration’s Plans

To help prop up the market, the Obama administration will offer $1 billion in zero-interest loans to help homeowners who’ve lost income avoid foreclosure as part of $3 billion in additional aid targeting economically distressed areas.

The Department of Housing and Urban Development plans to make loans of as much as $50,000 for borrowers “in hard hit local areas” to make mortgage, tax and insurance payments for as long as two years, according to an Aug. 11 statement. The Treasury Department will also provide as much as $2 billion in aid under an existing program for 17 states and the District of Columbia, according to the statement.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Are more of your Real Estate Deals Falling Apart?

Sun, 07 Aug 2011 13:02:01 -0700

One of every six real estate professionals reported in June having signed contracts canceled before closing — which is up from one in 25 the month prior, according to the National Association of REALTORS®.

The average cancellation rate for the past 16 months has been between 8 percent and 10 percent.

Lawrence Yun, NAR’s chief economist of NAR, says possible culprits could be lowball appraisals and tightened mortgage underwriting rules. Some real estate professionals also point to lawmakers’ indecision on the national debt ceiling the last few weeks and an increase in short sales-related cancellations due to buyer frustration at the lengthy process or banks not approving the short sales.

And some real estate professionals say that buyers simply have just gotten more picky.

Home inspections often turn up some problems in homes, but “lately buyers seem to be holding out for perfection,” Jessika Mayer, manager of professional development at Coldwell Banker Plaza Real Estate in Wichita, Kan., told The Real Deal. She says that minor problems surfaced by inspections that buyers once let pass are now derailing deals, with buyers’ increasing demands for replacements, repairs, and price discounts.

Source: “Home Buyer Contracts Falling Apart,” The Real Deal (July 29. 2011)

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

FTC Changes MARS Ruling for Santa Cruz County Short Sale Agents

Sun, 17 Jul 2011 10:53:35 -0700

Big news for Santa Cruz County real estate agents who assist financially distressed borrowers in obtaining short sales from mortgage servicers or lenders. The Federal Trade Commission (FTC) issued a statement today stating that it will forbear from enforcing most of the provisions of the Mortgage assistance Relief Services (MARS) rule against real estate agents or brokers working with distressed borrowers on short sales.

The MARS rule formerly required a series of disclosures, which many complained were misleading and confusing to distressed borrowers working on short sales. Now, however, there is a stay on many of these disclosures.

According to a press release from the FTC:

The stay applies only to real estate professionals who: 1) are licensed and in good standing under state licensing requirements; 2) comply with state laws governing the practices of real estate professionals; and 3) assist or attempt to assist consumers in obtaining short sales in the course of securing the sales of their homes. The stay exempts real estate professionals who meet these requirements from the obligation to make disclosures and from the ban on collecting advance fees. These professionals, however, remain subject to the Rule's ban on misrepresentations.

The Commission stated that the stay does not apply to real estate professionals who provide other types of mortgage assistance relief, such as loan modifications. In addition, the FTC will continue to enforce the Rule and Section 5 of the FTC Act, which prohibits unfair and deceptive practices, against all other providers of mortgage assistance relief services.

So, for those agents in the state of California (and likely throughout the U.S.), there may be two less forms that sellers have to sign. and, we also may get the added benefit of a lot less confusion.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Great news for California short sales - Deficiencies g-o-n-e

Sun, 17 Jul 2011 10:39:37 -0700

LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED

Here is the legal notice just signed by Gov. Brown. - This law is fully set forth as Senate Bill 458 (Corbett) at www.leginfo.ca.gov

In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four
residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short
sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

Exceptions to the new law include a lender seeking damages for a borrower's fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

DO YOU QUALIFY? New Online: Free HAMP Calculator

Sat, 16 Jul 2011 12:12:08 -0700

Home Affordable Modification Program (HAMP) now has a calculator to figure out if you qualify

The Treasury Department is offering a free online calculator that helps borrowers estimate whether or not they qualify for the Home Affordable Modification Program (HAMP).

The calculator is available at CheckMyNPV.com.

In the two years since its launch, HAMP has helped more than 270,000 borrowers receive permanent loan modification, thus lowering their monthly mortgage payments. That number falls far short, however, of the millions of homeowners at risk of foreclosure - which is bad for homeowners and bad for the housing market. The current glut of foreclosures - stalled by paperwork delays - poised to hit the market is already far more than can be absorbed by first-time homebuyers, according to the research firm Campbell Surveys.

That is why HAMP is so important. Every homeowner who modified a loan and stays in a distressed property is one less property that will flood an already crowded market.

Happy Trails to you . . . until we meet again, ♫

Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com

Patti's Santa Cruz Real Estate Blog

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