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Politics and corporate greed continue to eat away at the hearts and wallets of American homeowners.
According to Bankrate.com just 2000 homeowners have received loan modifications beyond the typical 3 month trial period nationally in the 7 months since the administration issued it's guidelines to lenders in order to help homeowners avoid or avert foreclosure. That equates to approximately 4 successful modifications per month per state. Lenders will typically stall short sale efforts simply because they can't see beyond dollars and cents. If the Bankrate.com information is correct they have danced around and away from folks asking for modification assistance and the Fed isn't concerned.
The Obama administration's claims of 500,000 homeowners being helped may be little more than political grandstanding again at the expense of homeowners who have been brought to their knees financially leaving many without any other recourse but to eventually walk away and try starting over somehow.
If you need help or have question regarding todays real estate and mortgage markets in SE Florida please call me directly 561-306-6736 or email your questions to rebuygeorge@yahoo.com Find more information about the SE Florida Real Estate market at GES-Realty.com Posted by George Sinacori
 On May 1, 2009 Fannie Mae and Freddie Mac implemented the HVCC (Home Valuation Code of Conduct) as a result of government pressures to reform valuation methods related to residential mortgage loans.
The impact of the HVCC has been chaotic. A myriad of inherent flaws with valuations methods has created more downward pressure on housing prices which in turn has contributed to a lagging housing recovery. Not the least among the unintended consequences of the HVCC has been the use of foreclosed and other distressed properties as comparables. Other inappropriate practices indicate that appraisers work in areas where they don't know the market. In many instances the value of comparables is determined by an exterior inspection only because the appraiser is unable to or unwilling to inspect the interior .
The following is an overview of the HVCC.
- Appraiser Selection
All members of the lender's loan production staff are forbidden from selecting, retaining, recommending or influencing the selection of an appraiser.
Loan production staff consists of:
Individuals who are involved in origination, underwriting, presenting credit offerings for approval and credit decisions Any person who reports to a loan production staff member or is compensated on a commission basis upon the successful completion of a loan.
- Quality Control on Appraisals
Lenders agree to perform quality control tests on at least 10% of appraisals by use of retroactive or additional appraisal reports or other appropriate method.The quality control testing must be performed on randomly selected appraisals The lender must report the findings of the quality checks to the Independent Valuation Protection Institute (IVPI)
- Hotline Notification
Lenders must notify appraisers and borrowers of the IVPI's telephone and email hotline for complaints concerning any improper or attempted improper influence on appraisers or the appraiser process.Lenders must notify every appraiser of the hotline in a separate letter. Each borrower must be notified of the hotline in a cover letter accompanying the appraisal.
- Effective September 1 2009:
Fannie Mae requires all lenders to obtain a signed and processed Form 4506 from all borrowers at application and again at closing. Form 4506 is an IRS document that allows a lender to verify a borrowers tax returns through the IRS.
According to a report by FAR (Florida Association of Realtors) housing industry groups such as the NAR (National Association of Realtors) and the NAHB (National Association of Home Builders) are calling on federal regulators to address the problematic HCVV and to develop "clear and concise guidance" for the use of foreclosed or distressed properties in appraisals in order to develop more realistic valuations in appraisals based on truly comparable properties.
For more information and updates on the HVCC please feel free to call me, George Sinacori, GES Real Estate, LLC directly at 561 306-6736 or email me at rebuygeorge@yahoo.com
Posted by George Sinacori
Housing prices peaked 40 months ago in May 2006. What have we learned from the great housing bubble and crash ?
Obviously, we have learned that housing prices can be extraordinarily volatile. No one can ever again say foolish things like housing prices never fall. People who bought with a standard mortgage in the years close to the boom have lost all of the equity in their houses. Buyers and lenders should never again think that an area's recent price increases are the sign of a strong market where prices have nowhere to go but up. In the long run, price increases are followed by price drops, and caution needs to be taken in booming markets.
The second lesson of the housing debacle is that there is extraordinary pain in both housing busts and booms. When housing prices soared, ordinary Americans found it increasingly hard to afford a house. During the boom, many hoped that housing prices would stop rising and even decline, not understanding the terrible impact that declining housing prices would have. Large swings in housing prices, can be extremely painful.
The third lesson is that the response to the American housing crisis has been embarrasingly foolish. We've used public resources to encourage ordinary Americans to bet all they could on the housing markets. We have allowed the bail out of financial firms that had lost too much on those mortgage gambles or were deemed to big to fail. We continue to provide billions of tax payer dollars to the same institutions that were instrumental in creating the bubble that burst what once was the American Dream.
All of these "lessons " leave me wondering what the next American Dream will be.
Perhaps a much less volatile, more comforting lifestyle with a reassurance that we live in a country that cares for it's citizens emotional, financial and physical well being. That the people we've put in charge are truly capable of handling those responsibilities. That we the people and our families are the beneficiaries and not the victims of big business and big government.
For more on today's housing market call 561-306-6736 or email rebuygeorge@yahoo.com
Posted by George Sinacori at 6:46 AM
 FREE $$$$$
The National Association of Realtors estimates that about 1.8 to 2 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.
Buyers have little time to act because they must complete the transaction by Nov. 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible - it is taking approximately two months to complete home sales in the current market. Short sales could take even longer.
For more info call me at 561-306-6736 or 877-566-2430 or email rebuygeorge@yahoo.com
Via Rick Misitano (Law Offices of James M. Bosco & Associates): A growing number of homeowners around the country are using a foreclosure defense that may help them retain their homes. It’s called “Produce the Note” and we want you to know this is not a mere technicality that should be treated lightly by the lender or by the Court.
Everyone needs to understand the importance of this issue. When a lender can’t produce the original note, allowing a foreclosure to proceed puts the homeowner at risk of owing that debt again to another party in the future. Therefore, great caution must be taken before a judge can allow someone who can’t produce the original note to cash in on your home.
What if Your Lender CAN’T Produce the Note?
So, what happens when the lender tells the Court it can’t produce the original note, because it is lost? Let’s start with the basics. If a lender wants to foreclose on a property, it has to be able to show that it is, in fact, the appropriate person to whom the money is owed. That right to foreclose belongs ONLY to the person who has legitimate POSSESSION OF THE ORIGINAL NOTE - not a copy, not an electronic entry, but the original note itself with the original signature of the person(s) who allegedly owes the money along with appropriate raised notary seal and signature. So, if you are faced with a foreclosure, you have every right to demand that the person or entity trying to take your property, first prove to the Court that they have the legal right do to so in the first place by proving they have legal possession of the original promissory note.
In my opinion, an original mortgage note is much like legal tender and should be guarded and protected as such by the person holding such an asset. Loosing an original mortgage note is like loosing a $100 bill or a gift card or a lottery ticket. What if I scratched that million dollar ticket and just stuck it somewhere and misplaced it? Do you think I could just show up at lottery headquarters and claim my prize without having the winning ticket? The same principle applies to the person or entity claiming to be the legal holder of an original mortgage note. He who holds the note holds the key.
What the Lender Must Do
What often happens, however, is that the lender claims it doesn’t have the original note, because that note has been lost or destroyed. If the lender is making such a claim, the law requires the lender to prove all of the following under the “Uniform Commercial Code”, which is a set of laws governing commercial transactions that many states have adopted. It contains a specific provision on this subject (Section 3-309) which states that a person can enforce a promissory note without having the original, BUT only under certain limited circumstances.
1. The person or entity has to swear and attest that it no longer has the original note;
2. The person or entity has to prove that it was properly in possession of the note and was entitled to enforce it WHEN it lost possession of the note;
3. The person or entity has to prove it didn’t “lose” possession simply because it transferred the note to someone else (i.e., it’s not really lost); and
4. The person or entity has to prove that it cannot produce the original note because the instrument was destroyed or its whereabouts cannot be determined or it was stolen by someone who had no right to it.
All of these matters have to be definitively proven by the person or entity trying to foreclose on the property. It is not the obligation of the borrower to prove or disprove any of this. The borrower can challenge the right of the person or entity trying to foreclose and demand proof.
The Court’s Important Role
It is up to the Court to determine whether the lender has satisfactorily proven why it no longer can produce the original note. The Court also has to be satisfied that when the original note was lost, the person trying to foreclose on the property had possession of the note at the time it was lost. Until the Court has been satisfied of all of this, the foreclosure cannot proceed.
It is also important for the Court itself to understand that this issue is not merely a “technicality” and the judge should not be satisfied with anything less than full proof of this issue. The Court itself needs to appreciate the fact that if it should agree that an original note has been legitimately lost (and allows the foreclosure to proceed) it is the borrower who is still at risk.
Why? Because incredibly, even if a Court has found that the original note is lost and the foreclosure sale is finalized, if someone later turns up with the original note and proves that it is the proper holder of the note, and not the person who foreclosed on the property, the original borrower is STILL LIABLE.
That’s right. Someone took your home and the Court allowed it because it believed that the lender proved that the note was lost and it was the proper party. Then someone legitimate shows up in the future with the actual note and you still owe that person the money even though your property was taken with the blessing of the Court. Trust me, this is a very serious issue regarding post foreclosures and post pre-foreclosure short-sales. It has happened to three of our own clients! These homeowners had the need to sell their property by means of a negotiated short-sale (so they could avoid a foreclosure) only to find out that the entity claiming to have the legal right and authority to enter into such negotiations and accept such settlements sold their note to another entity and weren’t even aware of it. Several months later, the newly assigned lenders (now claiming to be the rightful owners of our client’s original notes) have since come forward and have also filed suite seeking to recover their entire outstanding principle balances owed to them (prior to the homeowners closing their short-sale transactions with the wrong note holders).
How fair is that?!?! It’s not! And that’s why homeowners need to start fighting back when someone is trying to take their home by foreclosure, especially since an overwhelming percentage of mortgages granted over the last 3 to 5 years have been packaged into securities and re-sold and re-assigned numerous times since the inception of the borrower's original note and mortgage. In some states, homeowners have better than a 50/50 chance of being successful in defending themselves against a completed foreclosure. Why wouldn’t anyone who owns a home do everything in their power to protect and defend it?
All the Best,
Rick D. Misitano, Senior Paralegal
Law Offices of James M. Bosco & Associates
Methuen Executive Park
240 Pleasant Street
Methuen, Massachusetts 01844
Phone: (978) 687-8804
Fax: (978) 687-8872
boscolaw@comcast.net
Home sellers are as frustrated as Realtors when the deal involves a short sale, as most home sales do these days. A recent survey revealed that only 23% of short sale contracts actually get to close. Although buyers come pre approved for financing and prices are market value, a host of problems still plague the short sale process. Rapidly falling appraised values due to neighborhood foreclosures combined with the snail like pace of lenders processing short sale packages are the heart of the problem (in my opinion).
Delays by lenders allow impatient buyers to walk away while values deteriorate to a lesser price than contracted for. A more efficient system may in fact reduce pending sale times with a more workable window and help to hold sales together. Short sales, after all should be seen as a way to prevent foreclosures and related costs to lenders. It's frustrating that with a way to avoid those costs many wind up in foreclosure anyway as a result of prolonged waiting periods. many lender delays are a result of insufficient staff and a lack of short sale experience and processing systems. Delays may also occur as a result of Realtor inexperience in submitting documents or informing buyers and sellers of the length of time involved.
Some lenders are considering or at least examining ways to shorten the process and short sale approval time by getting BPO's (appraisals) and setting bottom line prices in advance of a contract. Ideally this lets a seller and realtor offer a property for a price that has already been accepted by the lender. The Treasury Dept. expects to provide lenders with a standard set of documents as well along with added incentives to help move the process along. Both steps in the right direction and an inevitable step in the evolution of home selling. More and more short sales are becoming the standard for home selling. The need for expeditious systems is now.
If you're trying to sell or buy a home please call 561-306-6736 or email me for more valuable information. Go to GES Realty.com for any real estate searches
Are banks holding back foreclosures and creating a false or temporary market bottom? According to a July 24,2009 article in the Miami Herald some analysts believe just that. Inventories of foreclosed and short sale homes have dramatically declined over several months as banks have been less inclined to take back more properties. For example, typically in Florida a judicial foreclosure filing takes approximately 6 months. Presently that time frame is more likely to be a year or longer.
I believe that banks are ill equipped to handle this new market of foreclosures and short sales. They don't have the personnel or the resources to actually take a property over and than turn it around quickly to market and sell. That being said it would seem more beneficial to not take on any more than they can handle. It's important for banks to exhibit a healthy or sustainable bottom line these days. Taking in non performing assets like an avalanche of foreclosed properties would not project the image that they need under the scrutiny of the Fed. It only makes sense that they should delay taking these properties back.
How about short sales? Would it benefit banks to process short sales faster than they have? If my analogy is right it seems that may be a good next step. If I have an asset that becomes a liability I sell it if at all possible. I think most people would unless there were some type of emotional connection to it. Why than, if banks are dragging there feet on foreclosures wouldn't they streamline the short sale process and rid themselves of the liability? Is it greed plain and simple? Maybe they're just not that sharp after all.
For more info and recent statistics email me or call me directly 561-306-6736 . Visit my website for info on buying, selling, tax credits, available foreclosures, short sales and existing homes.
Lower appraisals are one of the biggest problems sellers, buyers and Realtors are faced with today. Because mortgage amounts are based on an appraiser's estimate of value, appraisals are a crucial cog in the machinery of the housing market. That cog may have ground to a halt recently.
Newly enacted federal government guidelines compounded by lenders putting pressure on appraisers to be very cautious of plummeting home values have crippled the already slow housing recovery. When a home is placed on the market, normally the fair market value is considered to be comparable to other homes sold at "arms length transaction" prices. In today's market these transactions are few and appraisers use distressed, foreclosed or short sale prices as comparable. An inappropriate approach by an appraiser using sales of distressed properties drives down prices on everything. A person not under water but needing to sell may be subject to the perceived value of an unjust appraisal because of the foreclosure down the street.
I and many other Realtors have listed homes that would have closed at list price only to be appraised lower due to a foreclosed or short sale closing occurring during our marketing activity or while we were in contract waiting to close. I may tweak a few appraisers with this post but I have to say it. Much of the housing bubble run up was directly related to over valued appraisals. Appraisers today are being more cautious.
The bubble or run up in values and the low ball appraisal are results of pressure on appraisers from lenders. At some point the dog needs to wag it's own tail and begin to take control of itself.
For more on selling your home, home values, mortgage rates and available properties call me directly at 561-306-6736, email me directly at rebuygeorge@yahoo.com , visit me on Twitter , or go to ges-realty.com
Buying your first home can be daunting. There are lots of factors to consider before buying, like your lifestyle. Ask yourself what your needs are and if owning a home will fill those needs. It 's important to consider that buying a home is more than a financial investment, although it can be rewarding in years to come. Even when housing prices don't increase rapidly buying your first home can prove to be a sound financial decision. The equity you build can help fund things like a college education for a child or your own retirement. Mortgage payments are like forced savings. As long as they are made and left untouched the savings will grow. The longer you stay in a home the more equity you'll build.
Once you've decided on buying your first home you should have a price range in mind and a short list of communities that will fit that lifestyle that we mentioned. The price is going to be detemined by how much home you can afford. Get pre-approved for a loan before looking at properties. It's not fun to fall in love with a home that you ultimately can't afford. Remember that there are going to be ongoing expenses as well. In addition to the mortgage payments there are utilities, cooling and heating, property taxes, assessments, insurance, repairs and services like landscaping as well as replacement of appliances. Condos and townhomes may not have the same maintenance requirements as single family homes . Older homes are often less expensive than newer but may require more attention and repair.
Most homebuyers today begin their search on the internet. Find a site that is easy to navigate and doesn't require you to register in order to search for homes. Once you've located a number of desirable homes and communities you'll want a professional Realtor to help you. Make sure that the Realtor is licensed and has MLS access. Ask plenty of questions about the area your considering. A good Real Estate Broker can be a valuable source of information and can easily guide you through the home buying process. Look for an experienced Broker with solid market knowledge. Your Broker's knowledge and ability to negotiate for you can save you time and money.
Remember that you will want to sell this someday. The more information you gather before buying, the better that purchase will look in the future.
If you have questions about buying your first home or selling a property please call me directly at 561-306-6736 or email me at rebuygeorge@yahoo.com
A bill passed by both houses and signed by the President on May 20, 2009 titled "Helping Families Save Their Homes"establishes among other provisions, some level of comfort for renters unwittingly caught in the foreclosure crisis. Many renting families have become victims of the foreclosure crisis by not knowing that the home is being foreclosed. Without warning they may be told that the home now belongs to the bank and that they have 48 hours to vacate. A provision of this bill finally addresses the problem and provides some security for renters of foreclosed homes. Helping Families Save Their Homes establishes protections for renters living in foreclosed homes.
According to Senator Dodd of Connecticut and a U.S. Senate publication:
"One of the overlooked problems in the foreclosure crisis has been the eviction of renters in good standing from homes that go through foreclosure because owners of those homes, unbeknown to the renters, have not been paying their mortgage. The bill will require the bank that forecloses to honor the existing leases, for renters on a month-to-month basis, provide a 90 day notice. If the bank sells the property to an intended owner occupant, 90 day notice is required. Parallel protection are provided for Section 8 tenants"
Senator Chris Dodd is Chairman of the Senate Banking, Housing and Urban Affairs Committee.
Other provisions of the bill reportedly are designed to help prevent foreclosures and increase the availability of consumer and business credit. Some of these are listed as;
- Expand Access to Hope For Homeowners
- Increase funding for Foreclosure Prevention
- Provide New Resources for Homeless Americans
- Increase borrowing authority for FDIC and NCUA (National Credit Union Association).
For more information on the new legislation or answers to questions about buying selling or renting in Southeast Florida please call me directly at 561-306-6736 or email rebuygeorge@yahoo.com
Free MLS searches and up to date information on how to buy or sell, including short sales and foreclosure are available at ges-realty.com
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George Sinacori
Boca Raton,
FL
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GES Real Estate LLC
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