Ed Brophy's Mortgage Update

San Diego: Relocate America’s Top 100 Places To Live (2010 Edition)

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Tue, 18 May 2010 13:50:03 -0700

Relocate America recently released its 2010 list of Top 100 Places To Live In America. The rankings are topped by some cities you may expect, and some you may not. Los Angeles did not make the list.

According to Relocate America, the rankings highlight communities “moving in the right direction”, defined as having a combination of strong leadership, job opportunities, improving real estate markets, recreational options and a good quality of life.

It’s not a bad formula and coming in at number 4 on the list of Top 10 Places To Live In America is San Diego. San Diego was chosen for its strong economy, diverse population, great educational institutions, unsurpassed quality of life, and world-renowned location make it the ideal place to do business, to work, and to live. Because of its highly-educated workforce and mix of high-tech industry and recreational assets, a marketing consortium of high-tech industries has dubbed San Diego “Technology’s Perfect Climate.

The Top 10 cities in which to live, as selected by Relocate America are:

Huntsville, AL
Washington, DC
Austin, TX
San Diego, CA
San Antonio, TX
Tulsa, OK
Charlotte, NC
Raleigh, NC
Boulder, CO
Minneapolis, MN

View the complete Top 100 Places To Live In America 2010 list at the Relocate America website.

May I give you a quote today?

Mobile: (949) 456-2783
Fax: (877) 667-4153

E-Mail: e…@e…y.com

Foreclosure Activity Slows For The First Time In Several Years

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Tue, 18 May 2010 13:42:33 -0700

The national foreclosure rate is finally falling.

According to foreclosure-tracking firm RealtyTrac.com, the number of foreclosure notices dropped 2 percent between April 2009 and April 2010.

Two percent may not seem like much, but it’s the first time in the history of the RealtyTrac report that the annual foreclosure rate has dropped.

To be sure, foreclosure rates remain elevated — more than 300,000 were reported last month, but default notices appear to be approaching a plateau.

Homeownership After Short Sale, Is It Possible?

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sun, 16 May 2010 15:36:12 -0700

Recently I’ve been receiving a number of questions asking Homeownership After Short Sale, Is It Possible. Many people who through no fault of their own had to sell were blocked from repurchasing a house for four years or longer, even though they’d rebuilt their credit, had qualifying incomes and were fully capable of handling a mortgage responsibly.

We are short selling our home, the mortgage company would not do a loan mod. Although we could not afford this house, we can afford a cheaper one – our credit scores are in the 640s. Will we be able to get another loan after the short sale closes?

There’s no one correct answer to this question or the 10 others I’ve received. I’ll do my best to give you the best answer available as of today. There’s some good news for people who have had to give the deed on their house back to the bank because of financial problems, or who have done a short sale to avoid foreclosure: You may not have to wait the typical four or five years to requalify for financing to buy another home.

California's 2010 Tax Credit for New Home Owners Update 05/14/2010

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Fri, 14 May 2010 14:39:53 -0700

As of 05/13/2010 California has received 2,470 applications for the $10,000 tax credit for new home owners totaling $13,283,000. So it's not too late to get your application in. Remember submitting an application does not guarantee you'll get the tax credit.

For more information e-mail or call me today:

E-Mail: e...@e....com

Short Sale Legal Issues Affecting Real Estate Agents Part #2

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Wed, 28 Apr 2010 08:35:10 -0700

Here's part two, another good read for all of my Realtor Partners participating in Short Sales. Hopefully your Broker has a disclosure you can use directing your clients to the professional appropriate to their area of concern.

Via Drew Sygit (The Lending Edge) Real Estate Financing Expert (The Lending Edge):

Short Sale Legal Issues Affecting Real Estate Agents Part #2

The previous post in this series was on 04/23/10, click here to read it.

MORTGAGE, EXPERT, MICHIGAN, BIRMINGHAM, BLOOMFIELD, DETROIT, ROCHESTER, ROYAL OAK, TROY

This series of posts is meant to assist real estate agents in recognizing:

Legal & Tax Issues their clients are exposed to through a short sale.

The legal liabilities agents may expose themselves to when representing short sale sellers.

Agents will be dealing with more & more short sales, both on the listing and sale sides, as the Obama administration's HAFA Program gains traction and meets its goal of decreasing foreclosures by turning them into short sales. So, you can either jump on board the "short sale train" or get run over by it.

Now let's look at some common legal & tax issues encountered on short sale transactions. Please share your thoughts and experiences with constructive comments for the benefit of all!

General Legal & Tax Issues on Short Sales

One of the biggest challenges and murkiest, is how to handle the legal and tax issues seller clients must consider on short sales. The major concerns on just about every short sale transaction:

What is the foreclosure process in the state where the property is?

Is the foreclosure process judicial or nonjudicial?

Is the mortgage debt(s) recourse or nonrecourse?

What are the tax ramifications of 1099's for forgiven debt?

How should potential deficiency judgments be addressed?

When should a seller client sign or not sign a Promissory Note to avoid a potential deficiency?

Is a short sale really the best option for a seller?

How will the seller's credit be impacted?

Should the seller file bankruptcy and if so, what type & when?

What happens if a Foreclosure Sale occurs during the short sale process?

Although some experienced real estate agents might be able to adequately address these issues, the majority of agents engaged in short sales are really in over their heads without even being aware of it.

Let's look at each of these a bit closer.

What is the foreclosure process in the state where the property is?

Keeping track of each state's foreclosure process could be overwhelming. Most agents though, only do business in one state, sometimes two, and so only need to concern themselves with their state.

Some states adhere to Title Theory where a Deed of Trust is used to convey the property deed to a trustee who holds the deed for the protection of the lender. Other states follow Lien Theory, where the homeowner retains the deed to their property but allows lenders to put a lien against the property through a Mortgage. Click here for a list of what each state uses.

Of critical importance is knowing how long the foreclosure process takes in the state where the property is located. Agents should also know if there's a redemption period after a foreclosure sale and how long it is. For more information on state foreclosure laws, click here.

Is the foreclosure process judicial or nonjudicial?

Agents should know if the lender just has to notify the homeowner and advertise the foreclosure sale or if they have to take the homeowner to court to foreclose. This neat map of the U.S. shows which method each state uses. Just hover over the state you're interested in.

Is the mortgage debt(s) recourse or nonrecourse?

Homeowners need to be made aware whether or not a lender can pursue them for a deficiency judgment for the difference between what they owe and what their property sells for at foreclosure. This is a totally separate issue from a 1099 for debt forgiveness and should not be confused with it.

Nonrecourse States

Alaska, Arizona, California, Connecticut, Florida, Idaho, Minnesota, North Dakota, Texas, Utah, Washington

What are the tax ramifications of 1099's for 1099 forgiven debt?

The Mortgage Forgiveness Debt Relief Act, which was extended to December of 2012, exempts acquisition or home improvement debt on one's primary residence from taxation. The limit is $1 million for single or $2 million for joint tax returns. Many agents tell their short sale sellers not to worry about a 1099-C ("C" stand for Cancellation) without asking their client if they pulled money out of their home through a refinance and what they used the money for. That's definitely a liability issue for the agent!

How should potential deficiency judgments be addressed?

This is not a question an agent should discuss with their client. You can talk about possibilities, but should refer your client to an attorney and or CPA. If your seller receives an unexpected deficiency judgment after you sell their home, who do you think they'll sue?

When should a seller client sign or not sign a Promissory Note to avoid a potential deficiency?

A deficiency judgment could affect a seller's credit and may lead to garnishment of bank accounts, paychecks, and even state income tax returns. Sometimes it may make more sense to negotiate a Promissory Note instead. Not something an agent should be doing!

Is a short sale really the best option for a seller?

There are many internet articles complaining about agents talking sellers into a short sale when a loan modification or other option would have been in the client's better interest. Sometimes staying in the property for as long as possible with no payments, is a homeowner's best course of action. Other times, given FNMA's recent clarification of waiting periods for qualifying for a new mortgage, a short sale may be best. If your client hasn't explored their options, you could be exposing yourself to a potential lawsuit if you don't properly inform them of the alternatives.

How will the seller's credit be impacted?

A lot of real estate experts were proven wrong when Fair Isaac Company, the developer of the infamous FICO credit scoring model, revealed how short sales, deeds-in-lieu and foreclosures affect a borrower's credit scores. Two important highlights: they all affect scores approximately the same and people with higher scores will be affected more. Almost every agent I've ever spoken to about short sales has told me with conviction that a short sale is better for a seller's credit than a foreclosure. I don't think "oops" is going to get them out of a lawsuit from an upset client.

Should the seller file bankruptcy and if so, what type & when?

Often a homeowner short selling their home has lost their job or is buried in debt with no realistic hope of getting out of their situation. Combining their situation with the probability of getting hit with a deficiency judgment may mean they'd be better off filing bankruptcy. Agents should make sure they don't give legal advice in these situations and don't get overeager to just list a property in pursuit of a commission check.

What happens if a Foreclosure Sale occurs during the short sale process?

Given all the various state foreclosure laws, this could be ugly. I've witnessed more than one agent telling a seller they could push a foreclosure sale back and not to worry. How do you spell misrepresentation? Proper disclosure must occur - even if it costs a potential commission check.

Well, how am I doing so far? Have I gotten your attention and enticed you to come back for more? Do you even want to read more or are you just going to swear off short sales altogether?

I recommend you find the best & most knowledgeable real estate attorney you can in your area and take them to lunch to discuss all these issues. From personal experience I warn you against just settling for an attorney you already know or one that claims they know what they're doing. Many attorneys are no more experienced than you are at short sales and are learning on the fly - and may do so at you & your client's expense. Seek out experienced attorneys or ones that are exerting a lot of effort to educate themselves quickly and are honest about it.

NOTE: if you're the impatient type and don't want to wait to read the series as it's published, I'll send you the complete whitepaper for the series when you do ALL of the following:

Post a constructive comment on one of the posts in the series

Reblog one of the posts in the series

Make me an associate of yours on ActiveRain

Join my Fanpage @ www.facebook.com/TheLendingEdge and send me a message there requesting the whitepaper with your email address.

If you're a Michigan agent, I'd also very much appreciate you joining a new AR group specifically for Michigan real estate professionals willing to share marketing and social media ideas with each other.

http://activerain.com/groups/michiganmarketingideas

Thanks for reading and I hope you spread the word.

_______________________________________________________________

If you enjoyed my blog post,
I invite you to connect with me on the social networks below & subscribe to my blog!

"Referrals are Sending Someone You Care about, to Someone You Trust!"
So, forward this blog post to someone that'll appreciate it!

_______________________________________________________________

Drew Sygit: CMPS, CMC, CRMS, CMLO, CALO, MBA, NAMB/MAMP Instructor & Speaker
The most Certified Mortgage Expert in the Midwest

Contact him for The Lending Edge
P: 248-356-3739 • F: 866-215-3755 • dsygit@TheLendingEdge.com • www.TheLendingEdge.com

Short Sale Legal Issues Affecting Real Estate Agents - Part #1

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sat, 24 Apr 2010 10:18:50 -0700

Drew has spent a lot of time researching the Legal Issues Realtors face when taking on a Short Sale. This is the first in a 10 part series he plans on running Tuesdays and Fridays.

I highly suggest all my Realtor partners follow the series. It really is a great read and an eye opener.

Via Drew Sygit (The Lending Edge) Real Estate Financing Expert (The Lending Edge):

Short Sale Legal Issues Affecting Real Estate Agents - Part #1

This series of posts is meant to assist real estate agents in recognizing:

Legal & Tax Issues their clients are exposed to through a short sale.

The legal liabilities agents may expose themselves to when representing short sale sellers.

How did I come up with this series idea?

I do a lot of networking which leads me to meet quite a few attorneys. Many of them seem to be getting into loan modifications and short sales and approach me for referrals. Besides direct referrals to homeowners, they all want introductions to real estate agents. When I ask why, almost all tell me how agents doing short sales are practicing law without a license. Since I'm very inquisitive, I've been asking these attorneys to give me specific examples. A surprising percentage of attorneys can't come up with specifics. Those that do, only have a small frame of reference. So, I started compiling a list and doing my own research - both by tracking down local legal experts and online.

This led me to create a whitepaper on Short Sale Legal Issues Affecting Real Estate Agents to distribute to my real estate partners. I got such great feedback that I decided to post it. Rather than just post it once as a blog and hope everyone on ActiveRain sees it, I came up with the idea of making it a series to increase the odds of more members getting exposed to it.

So, please read on and if you like it share it with others that you know. Also, definitely share your thoughts and experiences with constructive comments for the benefit of all!

Many real estate agents recognize the market is changing and short sales are becoming too numerous to ignore. Agents are jumping into the short sale market in a big way and several have really focused their business models on short sales.

Short sales will continue to increase due to the Obama administration's stated goal, through its HAFA Program, of increasing short sales to decrease foreclosures. So, agents will be dealing with them whether they want to or not.

To set the stage, so to speak, for the legal & tax challenges agents face on short sales, let's cover some general challenges.

General Short Sale Challenges

Working with short sales presents many challenges to real estate agents that they don't deal with on normal listings.

Sellers may be more interested in staying in the property as long as possible without making payments. This will affect their motivation in getting you what you need to get the property sold. To make sure sellers are serious about selling, many agents are charging sellers a nonrefundable, upfront fee. Make sure to get your broker's approval though, if you choose to do this.

Getting all the proper paperwork together can be time consuming. There is so much to putting together a short sale package and it all takes time. Time is money and if an agent's not careful, they can spend too much time on a single short sale listing to the detriment of the rest of their business.

Lenders on the property seem to misplace paperwork at an alarming rate. Often this is probably used as an excuse due to personnel being overwhelmed with volume. An agent isn't going to win against the lenders with this. A better strategy might be to scan the entire package and use a fax server type of program that allows the sending of a PDF via computer.

Agents are often pushed to list a property at a price to cover what's owed versus a realistic market price. The standard position of many lenders is that a property should be initially listed at a price equal to the mortgage balance. This can put an agent in a legal quandary as they have a fiduciary responsibility to their client seller not the lender. If a high starting list price leads to the property going to foreclosure sale before a buyer can be found, an agent could potentially be held liable if they didn't take proper measures to protect themselves. An agent should check with an attorney about a waiver to use to address this situation.

Getting price reductions approved can be tedious. Again if the seller is not serious or getting bad advice from their lender, the listing can turn into a waste of time. Agents may be able to have a seller sign a pre-agreed upon price reduction timeline to avoid this. An agent should check with their broker or an attorney to be sure this is legal in their state.

Once an agent secures an offer from a buyer, it can take months for the lender(s) to approve it. See number 3 above about "lost" faxes. It also seems to take lenders quite some time to get Broker Price Opinions scheduled and to run their Net Present Value analysis.

Second mortgages usually complicate matters greatly. The two (or more) lenders compete for the dollars available through a short sale. Even though the junior lienholders are aware they'll probably recover nothing if the property goes to foreclosure, they're also aware that the first lender will receive less in a foreclosure. They use this to leverage what they can recover on a short sale. The HAFA Program addresses this issue and it's hoped it will reduce the frequency of this delay.

Agents have to work with title companies to prepare mock HUD-1 settlement statements to accompany every offer submitted to the lender(s). This task is best left to a title company as they have the software to execute this and account for transfer taxes, pro-rated taxes and the like.

Need I go on?

Can you see how a short sale can take up a significant amount of an agent's time?

Please comment on other issues that you've encountered that are NOT legal or tax issues.

By the way, here's a teaser or cliff hanger, for the next post of the series:

•- What are the tax ramifications of 1099's for forgiven debt?

SHORTCUT NOTE: if you're the impatient type and don't want to wait to read the series as it's published, I'll send you the complete whitepaper for the series when you do all of the following:

Post a constructive comment on one of the posts in the series

Reblog one of the posts in the series

Make me an associate of yours on ActiveRain: www.ActiveRain.com/dsygit

Join my Facebook Fanpage @ www.facebook.com/TheLendingEdge and send me a message requesting the whitepaper.

If you're a Michigan agent, I'd also very much appreciate you joining a new AR group specifically for Michigan real estate professionals willing to share marketing and social media ideas with each other.

http://activerain.com/groups/michiganmarketingideas

Thanks for reading and I hope you'll spread the word.

_______________________________________________________________

If you enjoyed my blog post,
I invite you to connect with me on the social networks below & subscribe to my blog!

"Referrals are Sending Someone You Care about, to Someone You Trust!"
So, forward this blog post to someone that'll appreciate it!

_______________________________________________________________

Drew Sygit: CMPS, CMC, CRMS, CMLO, CALO, MBA, NAMB/MAMP Instructor & Speaker
The most Certified Mortgage Expert in the Midwest

Contact him for The Lending Edge
P: 248-356-3739 • F: 866-215-3755 • dsygit@TheLendingEdge.com • www.TheLendingEdge.com

First Time Home Buyers Time is Running Out

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Tue, 20 Apr 2010 18:25:54 -0700

First-time homebuyers in Southern California are facing a deadline. Time is running out on the $8,000 tax credit. To receive the $8,000, first-time buyers will need to be under contract by April 30th of this year.

If you had plans on taking advantage of this credit, you should already be seriously shopping for a home. It is tough times out there for buyers. Inventory is at incredibly low levels and the better homes, that are priced appropriately, have multiple offers. There is also a strong possibility that the home you find will be either a short sale or REO (foreclosure). Negotiations for these homes can be expected to last from a week to months to complete. So now is the time to get the process started!

Sometimes Loan Closing is Out of Your Loan Officers Control

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Tue, 20 Apr 2010 11:47:03 -0700

Nick Pakulla has a great post up asking Realtors what they look for in a Loan Officer or Mortgage Broker, I like to dedicated this post to those Realtors who have piped up with the ability to close the loan as a quality they'd like to see.

You've all, or maybe I should say most of you have worked short sales, you've experienced the bank decline a good strong offer resulting in the foreclosure of the home. You then see the home listed for much less than the offer your client submitted during the short sale period. While banks are trying to protect their assets they're also shooting themselves in the foot at the same time. I've seen several short sales get good offers only to go to foreclosure and close for 20-30k less.

Everyone wants to work with a loan officer who can close loans, unfortunately unlike years past this is now out of our hands. Until moving to a Direct Mortgage Banker I've had loans go to the close of escrow only to have Well Fargo, B of A and others pull approval at the last minute.

I had one in Laguna Beach a 17 million dollar property, client put down 16 million, loan docs where signed and we were sitting at the escrow closing when the call came in from Wells Fargo that they were pulling the approval because of $175 negative on an income property. Now the client is golden tons of reserves A1 credit, it just didn't make sense. Walked his file over to a friend at the company I work with now and we had a close in 5 days.

Luckily we had Sellers that understood and a Buyer who was willing to pony up the additional $1 million if the Sellers didn't want to delay the close.

I agree with everything Nick listed as great qualities, but some of those qualities are controlled by third parties and are out of the LO's hands.

Timely response to all requests from clients and agents (This is a two street the client and Realtor must be timely in their response for conditions, reports and other information)
Upfront about fees and expectations (should be provided on a preliminary HUD 1, if it's not I say run and run fast)
Accessibility of underwriting and processing staff (If the loan is brokered out to a 3rd party this becomes an issue, have you tried contacting a B of A underwriter or processor? It can be days before you hear back from them. All our staff is in house, so if they don't answer their phone I can walk over to their desk.)
Ability to connect with clients and provide a high level of service
Specific subject knowledge and expertise about the loan process and programs
Competitive interest rates
Delivery of loan package early
Unique loan programs to meet certain clients’ criteria
Ability to make business decisions on loans that don’t fit the exact mold (we approve, underwrite and fund in-house)
LAST: The very best interest rates

What I'm trying to say here is you have to know a lot about your mortgage partner, are they a Mortgage Broker or a Mortgage Banker?

A Mortgage Broker is an independent contractor working with (on average) as many as 40 lenders at any one time.

A Mortgage Banker also commonly referred to as a Direct Banker, not only approve and underwrite their own loans but close and fund mortgage loans.

I'll have more on the difference coming in a future post.

Nigerian Home Rental Scams Plaguing Craigs List

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Mon, 19 Apr 2010 23:02:50 -0700

Nigerian home rental scams plaguing Craigs List at an alarming rate, I urge everyone who is in the rental market to remember this one piece of advice. If it’s too good to be true it probably isn’t true.

I’m in the market to rent a home in Palm Springs, California, I’ve been searching Craigs List regularly and working with a Realtor friend in an attempt to find just the right place at a reasonable rent. Unfortunately the rates for rentals in Palm Springs and the surrounding areas are all over the place, so trying to weed through the Nigerian scams is a little tough.

This morning while weeding through the new postings on Craigs List I came across one of those too good to be true listings complete with photos, property address and contact e-mail.

Some People Take the Cake - An honest to goodness phone call

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sun, 29 Apr 2007 03:08:18 -0700

I'm sitting here minding my own business when the phone rings, Sally Shopper is on the other end. Sally want's to refinance her current 30 year fixed 5% mortgage to take out $100,000 to purchase an investment property.

Sally would like to remain at a 5% fixed rate and not pay any points, and also purchase her investment property with the same 5% fixed rate. After asking all the obligatory questions, I get around to qouting Sally rates.

Sally: Ed I know there are 5% 30 year fixed loans available because I have one, are they just all sold out?
Me: No, Sally they're not all sold out they're just not available at this time.

Sally: Ed, I understand they're not available at this time but, can I refinance my current home at the higher rate then, grab up the 5% rate that becomes available for my new purchase.
Me: No Sally, interest rates have gone up, a 5% interest rate is no longer available.

Sally: I don't understand Ed, if I refinance my current 5% fixed rate then it should be made available for use on another loan. Ed, if I buy the last sweater at Macy's and later return it someone else can buy that sweater. I'm returning my 5% so, it should be available to me for my investment property.
Ed: Sally, it doesn't work that way interest rates are up therefore, 5% is no longer available.

Sally: Well, what can I do? I've called 7 people today and they're all telling me the 5% loan is sold out. How many people have to return the 5% loan before it's made available again?

By this time my eyes are rolling and I'm trying not to laugh at this woman. I try to calmly explain to her how interest rates are determined, etc. She continues on with the same line of shopping and returning, when will I be getting more 5% loans in, etc. By now I'm looking at the clock wondering if 11:30am is too early to have a sit down with my good friend Jack Daniels when she hits me with, Ed I really like you, you're very up front and honest, I'm going to call you back every couple of days to see if any of your clients have returned their 5% loan.

Anyone want a California Referral?

The Imploding Housing Bubble, Who’s Responsible?

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Tue, 03 Apr 2007 18:45:03 -0700

By Ed Brophy
April 3, 2007

Yesterday’s news of New Century’s bankruptcy filing got me thinking, who’s responsible for the imploding bubble that is the housing market? Are the lenders, the FED, borrowers, Realtors® mortgage brokers, appraisers or loan officers responsible? Who’s ultimately responsible for the real estate debacle we now find ourselves in? The answer to this tough question is that everyone is responsible to some degree or another.

Ultimate responsibility can be laid squarely at the feet of former Federal Reserve Chairman Alan Greenspan. Greenspan lowered rates and encouraged borrowers to...(more)

Countrywide Foreclosures As of 03/31/2007

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sun, 01 Apr 2007 23:35:07 -0700

California and Michigan in the top 2 followed by Texas. Who would have thought?

State	Count	Total Asking Price($)	SF Median Asking Price($)

AK	7	1,337,300	243,900
AL	103	10,349,900	75,900
AR	33	2,550,197	54,900
AZ	120	35,374,700	231,900
CA	1031	411,184,000	374,900
CO	234	37,509,900	132,900
CT	47	11,148,400	216,900
DC	3	977,700	283,900
DE	2	401,800	200,900
FL	218	54,938,900	185,900
GA	493	69,055,000	102,900
HI	3	1,308,700	568,900
IA	32	2,399,800	59,400
ID	7	1,236,300	120,900
IL	253	43,302,000	115,900
IN	282	19,324,680	40,900
KS	57	6,058,200	89,900
KY	48	4,305,300	73,900
LA	26	2,788,400	82,900
MA	172	42,306,700	251,900
MD	37	11,226,900	203,400
ME	7	1,001,300	150,900
MI	955	80,507,496	59,900
MN	207	34,688,200	153,900
MO	249	27,134,005	74,900
MS	63	4,860,655	56,400
MT	1	212,900	212,900
NC	124	13,169,100	71,900
ND	8	861,200	95,900
NE	20	2,173,100	98,900
NH	44	9,444,600	209,900
NJ	43	12,541,800	244,900
NM	15	2,826,500	116,900
NV	210	73,505,400	276,900
NY	81	16,267,300	177,900
OH	476	30,141,600	55,900
OK	70	5,409,600	62,900
OR	8	1,516,400	168,900
PA	117	11,050,100	68,900
RI	31	7,328,900	220,900
SC	35	4,668,600	68,900
SD	5	778,500	125,400
TN	180	16,798,600	75,900
TX	569	81,931,050	97,900
UT	4	537,600	112,400
VA	135	45,321,800	256,900
VT	0		0
WA	31	6,526,000	149,900
WI	60	9,463,200	128,900
WV	18	1,984,200	64,900
WY	1	169,900	169,900
Total	6,975	1,271,904,383	105,900

Reposted with permission. Originally posted a: http://countrywide-foreclosures.blogspot.com/

About the guy who put this all together: I started this blog/site to show a couple of friends the total count of foreclosures by Countrywide. I kept going to Countrywide's website (along with other places) looking for an REO and was frustrated by the way the listings were presented. After noticing a rapid rate of acceleration in foreclosure inventory, I decided to crawl their site and organize the listings. I'd like to thank everyone blogging about the housing bubble who literally saved me from buying an overpriced house a couple of years ago and got me interested in our economy. Let's hope this doesn't end up as badly as some are predicting and that the "American Dream" remains within our hearts for centuries to come!

The Financial Ruin of Americans - Part Three Holding Yourself Accountable

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sat, 31 Mar 2007 12:45:39 -0700

By: Ed Brophy
March 28, 2007

This is part three of a series. Read: Part One, Part Two

In part two I promised you a few ways to keep yourself on track and accountable for your spending.

My biggest problem was that I had no one other than the puppies to hold me accountable on my journey to becoming debt free. Let me tell you folks I fudged the wants into needs on many an occasion. I soon started to notice a pattern in my spending. Stress equaled spend, boredom equated to more spending, nothing on TV let’s go shopping for some new music on Itunes.

My ah-ha moment came when I found myself one Saturday night with ... more

The Financial Ruin of Americans - Part Two Working Your Way to Becoming Debt Free

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sat, 31 Mar 2007 12:40:41 -0700

By: Ed Brophy
March 27, 2007

This is part two of a series. Read part one here.

I promised you a few tips and tricks to use to help on your way to becoming debt free.

If you are one of the millions of Americans who find yourself living paycheck to paycheck don’t despair you’re not alone, recent figures suggest that over 75% of Americans are turning to prostitution to make ends meet one paycheck away from financial ruin. The goal of this article is much the same as the goal I have personally achieved and the goal I try to get my mortgage clients to achieve.

My goal to debt free living started about 1 year ago when I noticed that no matter the amount I earned each month it was never enough to cover the bills. I’m telling you it was a serious wake up call when I would watch $15,000, $20,000 even $30,000 monthly commission checks be gone within seconds of depositing them and paying bills. I kept asking myself where in the hell is the money going?

In an attempt to answer my question I started carrying around my digital voice recorder (yeah, I’m a techogeek and I’m old. I was forgetting stuff 5 minutes after I said to myself don’ t forget…), to record my purchases for the day. I “wrote down” everything I bought then recorded it in an excel spreadsheet so I could see on paper what I was spending. After a month it soon became clear that I had a spending problem.

Oh, I was spending it quicker than I could make it, ... more

The Financial Ruin of Americans - Part One

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Mon, 26 Mar 2007 17:57:10 -0700

By: Ed Brophy
March 26, 2007

This entry is inspired by Dad Gone Mad’s entry “Brother Can You Spare a Dime?” Dad Gone Mad has broken a social taboo in his blog by discussing his financial status. The number of comments he received topped out at 80, all from people who find themselves in similar situations.

As a Mortgage Broker I speak with people daily who have over extended themselves in their quest to keep up with the Joneses. Who are the Joneses, has anyone ever met them? If you have will you please give them a swift kick in the ass or hang a burning effigy of them so that we can all see the lie that is their publicly portrayed financial well being.

One of Dad Gone Mad’s readers made this statement which truly typifies the thinking of the average American and is a sure way to....(more)

The Booming Foreclosure Market, What’s Going to Happen?

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Tue, 20 Mar 2007 17:02:18 -0700

By: Ed Brophy
March 20, 2007

Face it folks all the indicators are pointing toward a substantial increase in the number of homes that are going to be foreclosed upon. As one account executive from a national lender put it “There’s a tidal wave coming and lenders are preparing for the worst.”

An Associated Press article on March 13, 2007, reported that late mortgage payments and foreclosures have reached a 3 1⁄2 year high. This alarming news even made the front page of the New York Times March 11, 2007, when “Crisis Looms in Mortgages,” an article by Gretchen Morgenson, described some startling realities.

Read the full article here: The Booming Foreclosure Market, What’s Going to Happen?

Financing Your Home? An Easy Way Not to Get Caught Short at the Closing Table

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Tue, 20 Mar 2007 15:51:28 -0700

By: Ed Brophy
March 20, 2007

When shopping for a refinance or purchase loan I can’t stress enough the importance of comparison-shopping. This past weekend I held an open house for a Realtor®, a couple spoke to me about their mortgage needs, during this discussion they advised me they were working with two lenders one was putting them in a 2 year adjustable rate loan at 7.25% with 2 points charged up front. This seemed a little aggressive even in today’s market. With a credit score in the 800’s and a conforming loan this couple easily qualified for a 30 year fixed rate loan at 5.75% with a 1-point cost.

Read the full article here: Financing Your Home? An Easy Way Not to Get Caught Short at the Closing Table

Mortgage Gougers Beware

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sun, 18 Mar 2007 16:03:48 -0700

Alright Gougers here's a warning for you.

While holding my own house open today I had a nice Greek couple come in who are out shopping for a home and also looking to refinance their current home which they'll keep as an investment.

They've been talking with Quicken Loans and Amerisave; Quicken Loans calls them everyday and Amerisave let's just say they're gouging the hell out of the client.

On the refinance of $372,000 Quicken Loans is charging them 2 points for a rate of 6.500%, Amerisave is charging them 2 points for a rate of 7.250% both extremely high rates for a couple with credit scores in the 800's. After a quick education about the loan process, rates and points I managed to get them to fill out an application, ran their credit and told them what I needed to complete the rolling of the ball.

I was quoted them 5.750% with 1 point, explained closing costs, tax impounds and all the fee associated with the loan and handed them a good faith estimate. When the left they said they'd be in touch, 15 minutes later they came back with all their required documentation.

Not a bad days income for holding my personal house open. Picked up two loans and possible sold them my house.

This my fellow loan originators is why I work open houses for Realtors, not only do I pick up business but, I pick up contact information and potential clients for my Realtor Partners.

Moral of the story: Beware of the honest guys out there who are upfront and take the time to explain interest rates and the loan process, you'll lose every time.

New Century Served With Cease and Desist Orders in Four States

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Thu, 15 Mar 2007 11:47:14 -0700

By: Ed Brophy
March 15, 2007

Bank regulators in New York, New Hampshire, New Jersey, and Massachusetts have all served Irvine California based New Century Financial Corporation one of the nations sub-prime lenders with cease and desist orders claiming some of their subsidiaries have violated state laws.

In their letters, the state regulators claim New Century subsidiaries have failed to fund mortgages that closed and didn't notify the states in a timely manner of its financial woes.

Several of New Century's creditors have cut or halted financing in recent days and demanded the sub-prime lender buy back loans it sold to them.

New Century, which lends money to home buyers with poor credit histories, has said it doesn't have enough capital to satisfy its subsidiaries' outstanding loan repurchase obligations. The company has stopped accepting loan applications.

On a side note: I have information from an attorney client of mine that several California Counties, including Orange County, CA has filed a class action lawsuit against New Century for it's questionable lending practices and loan qualification manipulation. Look for more on this case in the coming weeks.

Read the full story here

Ed Brophy
President
Synergy Mortgage

Direct: (760) 409-9069

Realtors 3 Points Acceptable? Lenders 3% Commission Gouging, Why?

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sat, 03 Mar 2007 17:46:22 -0800

By Ed Brophy
Synergy Mortgage
March 3, 2007

Brian Papaccio has a great post (Real Estate Commission VS. Mortgage Points) calling into question why it's acceptable for Realtors to charge a 3% commission on the sale of home and it's gouging when a mortgage broker earns 3 points on a loan? It's a great question.

As Brian states if he has the resources and expertise to obtain financing when another lender was unable, isn't he entitled to earn the value of his services as long as Section 32 isn't violated?

On the mortgage side of things the total cost of a loan can not exceed 4.99%, this includes appraisal costs, broker rebate, points, escrow fees, title fees, recording fees, lender and broker fees along with everything else that's included in recurring and non-recurring closing costs.

Realtors on the other hand have zero limitations placed on the amount they can charge in each transaction. If you have a Seller willing to pay a 7% commission you've hit the jackpot and no one calls your charges into question or accuses your of gouging the client. You're high-fived throughout the office.

On the mortgage side of things we have points, another word for commission. In the mortgage business points are a dirty word, the first thing out of the mouths of many are "I don't want to pay any points!" That's great, if you choose not to pay any points you're putting yourself in a position of obtaining a higher interest rate. This is just one of the many items that go in to determining a clients final rate.

As Marc Blasi said "Unfortunately too many people don't really know what's going on with the other facets of the transaction, so people should probably err on the quiet side."

Unless your intimately involved in and understand the clients particular circumstances it's probably best to follow Marc's advice and remain quiet. I speak to people every day who claim to have perfect credit, never missed payments, never filed bankruptcy, etc. However, once you pull a credit report you find all the things they neglected to tell you. People are ashamed to tell you they have filed bankruptcy or they're behind in their taxes or there's a judgement filed against them. If they're not going to tell the person who's trying to get them financed what makes you think they're going to be any more honest with the Realtor?

I currently have my home listed with a Realtor who is charging 5%, in the two weeks she's had the listing she has done absolutely zero when it comes to marketing my home. I'm doing the advertising, supplying the flyers and holding open houses with the help of Realtor Friends. Am I being gouged? Isn't 5% a large chunk of change to pay to be included in the MLS?

I hand selected this Realtor because after interviewing a gaggle of Realtors she was the only one who knew the value of my home. (Before putting the home on the market I had an appraisal done to determine market value.) The Realtors I interviewed came in all over the board some were extremely low and others were trying to buy my business by inflating the price. Am I within in my rights as a client to question her marketing approach and her fees, you bet I am. Am I within my rights as a lender to question the amount she's charging? Absolutely not!

We all have different business models which require us to earn x number of dollars per deal. Who are we to question another's fees? If it falls within the realm of reasonableness it's all good. In the lending business it's better to over estimate the fees, who wants to get caught short at the closing table and risk ruining a deal?

So why is one acceptable and the other's gouging?

Ed Brophy
President
Synergy Mortgage

Toll Free: (888) 45-LOAN-5 ext. 1
Direct: (760) 409-9069
E-mail: ewbrophy@synergymortgageloans.com
Web: http://www.synergymortgageloans.com/

Great Rancho Mirage Home Offered At $765,000

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sat, 03 Mar 2007 15:34:51 -0800

This is really a perfect home in the perfect location.

This 2,439 square foot home offers large oversized bedrooms, the master suite is exceptionally large and features a large walk-in closet, private bath and shower with direct access to the large yard.

Great curb appeal, wrap around corner lot, new desert front & side landscape, drip irrigation system, landscape lighting and custom brass patina mailbox. (View Slideshow Here)

Property has been improved with newer 18 porcelain tile floors and plantation shutters throughout.

Your new kitchen features a Fisher and Paykel double drawer dishwasher, Wolf 5 burner stove, Double wall oven, 2 pantries, large breakfast area and direct access to laundry room and garage.

Bathrooms boost shower tiles, limestone counters, top of the line Toto toilets, ceiling to countertop mirrors, recessed medicine cabinets and more.

Ceiling fans in every room. Finished garage, pebble tech salt water pool & spa, tile roof.

The community of Rancho Mirage is a leader in luxury residential developments and is home to three
world-class, award-winning destination resorts. The City is noted for its fine restaurants, professional services, financial institutions and home furnishing and design centers.

Residents and visitors, alike, delight in golf course living and outdoor activities such as tennis, hiking, and swimming. The River at Rancho Mirage provides a destination for upscale shopping, movie going, and dining for a casual afternoon or evening on the town. The City's Speakers Series, concerts at the Annenberg Center for Health Sciences, and the Rancho Mirage Library help to enrich the lives of visitors and guests.

Rancho Mirage offers five-star health care at renowned medical facilities such as Eisenhower Medical Center.

For years, Rancho Mirage has used the image of the native bighorn sheep as a symbol of desert beauty and city pride. Those majestic animals live within the hillsides of the spectacular Santa Rosa Mountains. The citizens of Rancho Mirage take pride in their preservation.

Rancho Mirage welcomes you to share the excellence that is Rancho Mirage - as a visitor, or perhaps, as a future resident.

Owner is licensed by the California Department of Real Estate and has arranged a 30 year fixed loan (6.5%) with a 10 year interest only option along with a 2 year temporary buy down, bringing the rate to 4.5% for the first year making your payment $2,295.00 per month.

Ed Brophy
President
Synergy Mortgage

Toll Free: (888) 45-LOAN-5 ext. 1
Direct: (760) 409-9069
E-mail: ewbrophy@synergymortgageloans.com
Web: www.synergymortgageloans.com

Stated Income, No Ratio and No Doc Loans Discontinued in the State of Ohio - A Sign of Things to Come?

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Thu, 01 Mar 2007 13:37:49 -0800

By: Ed Brophy

Synergy Mortgage

March 1, 2007

Recent action by investors in mortgage-backed securities in response to the recently enacted Ohio Senate Bill 185 suggests that certain mortgage products originated in Ohio by non-bank entities may not be acceptable for inclusion in securitization pools. In response to this liquidity concern, effective February 26, 2007, Wells Fargo will no longer accept reduced documentation loans secured by properties located in Ohio, as outlined below. Wells Fargo will no longer accept stated income, no ratio and no doc loans for all programs and products for properties located in Ohio including those submitted through Direct ExpressSM. This applies to borrower selected and system selected loans.

These include, but are not limited to:

Wells Fargo Mortgage ExpressSM

Limited Doc/VOA

Stated Income/Stated Asset

Stated Income/Verified Assets (SIVA)

No Ratio with VOA Option

No Doc

LP “Accept Plus” doc class

DU Findings not requiring verification of income

I wonder how long it will take for this to spread across the country and to other lenders.

Ed Brophy

President

Synergy Mortgage

Toll Free: (888) 45-LOAN-5 ext. 1

Direct: (760) 409-9069

E-mail: ewbrophy@synergymortgageloans.com

Web: http://www.synergymortgageloans.com/

NAMB Poll Reveals 63.4% Unable to Refinance

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Thu, 22 Feb 2007 11:19:12 -0800

By: Ed Brophy

Synergy Mortgage

February 22, 2007

A National Association of Mortgage Brokers recent polling of their membership reveals that 63.4% of 1,148 members poled were unable to assist homeowners wishing to refinance out of their Adjustable Rate Mortgage (ARM) due to bad credit, insufficient equity and overstated appraisals.

Of the consumers who have recently contacted you to refinance out of an ARM that is resetting, which of the following occurred most often?
Refinance at a lower rate than reset rate	277
Refinance at an equal or higher fixed rate than reset rate	143
Unable to refinance due to bad credit	68
Unable to refinance due to insufficient equity	647
Unable to refinance due to overstated appraisal	13
Total Count	1148

Ed Brophy
President
Synergy Mortgage

Toll Free: (888) 45-LOAN-5 ext. 1
Direct: (760) 409-9069
E-mail: ewbrophy@synergymortgageloans.com
Web: http://www.synergymortgageloans.com/

Predatory Lending Schemes

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Mon, 19 Feb 2007 13:29:48 -0800

By: Ed Brophy
Synergy Mortgage
February 19, 2007

Before purchasing a home, research information about the prices of homes in the neighborhood.

Shop for a lender and compare costs. Beware of lenders who tell you that they are your only chance of getting a loan or owning your own home.

Beware of "No Money Down" loans. This is a gimmick used to entice consumers to purchase property that they likely cannot afford or are not qualified to purchase. Beware of the mortgage professional who falsely alters information to qualify the consumer for the loan.

Do not let anyone convince you to borrow more money than you can afford to repay.

Do not let anyone persuade you into making a false statement such as overstating your income, the source of your down payment, or the nature and length or your employment.

Read and carefully review all loan documents signed at closing or prior to closing for accuracy, completeness and omissions.

Be aware of cost or loan terms at closing that are not what you have agreed to.

Be suspicious if the cost of a home improvement goes up if you accept the contractor's financing.

Ed Brophy
President
Synergy Mortgage

Toll Free: (888) 45-LOAN-5 ext. 1
Direct: (760) 409-9069
E-mail: ewbrophy@synergymortgageloans.com
Web: http://www.synergymortgageloans.com/

Blogging Your Way Out of Debt

Ed Brophy - REALTOR® - DRE #01344385 (Ed Brophy, REALTOR®) — Sun, 18 Feb 2007 19:10:30 -0800

By: Ed Brophy
Synergy Mortgage
February 18, 2007

This morning as I logged on to the internet I saw an interesting story on my Google home page titled "Some Big Spenders Blog Down Their Debts."

As a Mortgage Broker in Southern California (the home of immediate gratification), I speak with people every day who are looking to refinance their homes. It amazes me how many individuals use their home as their personal bank. There are right and wrong reasons to refinance, as an Upfront Mortgage Broker before I'll take on a potential new client it's important that not only I see the benefit but, that the potential client has all the information necessary to make a decision that best fits their financial goals.

Read the full Article Here

Ed Brophy
President
Synergy Mortgage

Toll Free: (888) 45-LOAN-5 ext. 1
Direct: (760) 409-9069
E-mail: ewbrophy@synergymortgageloans.com
Web: http://www.synergymortgageloans.com/