I find it hard to believe some Realtors are still trying to bypass educating themselves fully in pre foreclosure process. Utilizing third party negotiators to negotiate pre foreclosure's can be a benefit; however the Realtor has the fiduciary duty to ensure the negotiator is licensed and skilled at negotiating the "most favorable outcome".  In order to properly screen individuals or companies claiming to be third party negotiators, the Realtor has to have the knowledge first. The Realtor who sits across the table from the clients armed with this knowledge is the key.  As a result of bypassing their own education, or resisting the education, untrained Realtors utilizing negotiators only focused on short sale negotiations, continue to pass along incorrect information to homeowners, information which could cause the homeowner not to have the "most favorable outcome".

It's imperative that Realtors possess the correct information when having intelligent conversations with clients. Trained Realtors can point out facts without giving legal or tax advice to homeowners on the possible Tax & Deficiency issues. California is one of 12 states with Anti-Deficiency Laws. In some cases going through a foreclosure is the most favorable outcome because of the protections provided by the Anti-Deficiency Laws. Realtors need to know the difference.  Realtors with a Pre Foreclosure Specialists Certification can point out the facts and explain non-recourse & recourse issues as they relate to; purchase money loans with PMI or LPMI,  80/20 non recourse splits involving 100% financing, or a 1st lien with a 2^ndlien recourse Home Equity Line of Credit, (HELOC).

When choosing a Realtor to handle your pre foreclosure transaction, the Realtor must demonstrate their working knowledge of the guidelines the servicers and each note holder (investor) are working off of.  Understanding how all the Government Programs, like the "Making Homes Affordable Program", the "Helping Families Save Homes Act" or President Obama's Foreclosure Alternative Program, ("FAP" Program) is setting the stage to streamline homeowner assistance. Most of these programs are requiring the servicer to attempt a loan modification; however the homeowner has to meet debt to income (DTI) ratios in order to qualify, if not the struggling homeowner can then proceed with a short sale, deed in lieu and lastly a foreclosure.

The Realtor must also be able to understand and point out the language used in approval letters, in order to guide the homeowner's conversation with their legal counsel. The terms "release" and "satisfy" should be scrutinized. Here is an actual example from a short sale approval I recently negotiated. The approval language used by SLS to "Release the lien secured by its Deed of Trust and "Release" the seller from liability under their promissory note was for a recourse 2nd lien, where the homeowner used a HELOC to pull out money out.

As you can see I was able to negotiate with SLS on the 2nd Lien (Recourse HELOC) and its investors to release the lien and release the seller from liability. This is very favorable language for the seller, who verified this with their counsel prior to moving forward and closing the short sale.  These transactions must be negotiated and documented by a highly trained Realtor, a Realtor doing short sales with a purpose, not by default because these type of transactions are a majority of current real estate market. 

Realtors who don't understand the foreclosure process or negotiating with loss mitigators are more likely to have 2^nd liens "charged off". A "Charge Off" is an instance in which a consumer (homeowner) is seriously delinquent in paying a bill and the creditor elects to transfer the account to an accounting category such as "charged to loss" or "bad debt." In such cases, the creditor may also turn the account over to an in-house or third party collections agency.  These cause problems and delays and may be a deal breaker when negotiating short sales, however a trained Realtor has the knowledge to deal with this situations.

Here are just a few questions to ask your Real Estate Agent before hiring them.

•·          Can my real estate agent explain the short sale process?

•·          Does my real estate agent have prior short sale experience & success this year?

•·          How do I know if my property qualifies for a short sale?

•·          Does my real estate agent know what "hardships" quality for a short sale?

•·          Does my real estate agent have an effective short sale strategy?

•·          Does my real estate agent know how to effectively Price & Market my property correctly?

•·          Which is better- a foreclosure or short sale?

•·          What are the consequences of the short sale?

•·          Why would the servicer and investor agree to a short sale?

•·          How is a short sale different from a normal sale?

Now is not the time to gamble with your financial future, there are lots of real estate agents claiming to be short sale experts. If your serious about finding solutions to minimize your financial loss and limit the damage to your credit history, contact Jennifer and Gary Ricco at Keller Williams VIP Properties. 661-290-3837

Santa Clarita Homeowners struggling with  Wachovia, Golden West or World Savings loans, would you like to speak directly with a Short Sale Manager able to explain, handle and approve your Short Sale?

Jennifer and I have recently been assigned and are working with a manager from Wachovia's Loss Mitigation division who's been assigned to handle the Santa Clarita Valley. This Wachovia representative will meet with all the homeowners that are interested in doing a Loan Modification or Short Sale to avoid foreclosure. 

I'm sure as homeowners you have heard the horror stories about the Loan Modification & Short Sales process, the time they take to get the approval and are confused about the ramifications associated with doing these types of transactions. Wachovia understands the position this market has created and now offers Realtors, homeowners and buyers the assistance necessary to streamline the short sale process and approve these transactions within traditional time lines.

Per Wachovia program guidelines the Wachovia representative will meet with homeowners to answer their questions, explain what program they qualify for and ensure their cooperation with a licensed Realtor. The beauty of this program is, you don't have to be behind on payments, however there must be a verifiable hardship in order to participate in this program. You may have received a letter from Wachovia or will be receiving a letter shortly, in any case feel free to contact me, I'll make the necessary arrangements for him to contact you directly.
 
Here are some of the programs highlights:

*One local point of contact for Realtors and customers to review strategy, submit offers and close the transaction

*On-site property and seller interviews by a Loss Mitigation Manager

*Approvals in 7-10 days 

*Average closing from start to finish:  48 business days

*$2500 up to $5000 cash for cooperation/moving expenses

This is a great opportunity for homeowners with Neg Am or interest only loans, who can not get a loan modification due to their negative equity position and debt to income ratios. Take the opportunity to speak directly with a Loss Mitigation Manager who can explain your options and show you how this program can help your family.

Should you be considering a short sale this is the time, with limited inventory and low interest rates Realtors have nothing to show and sell their buyers.  Take full advantage of this seller market and position yourself to minimize your financial loss. 

Contact Jennifer or I to make an appointment with Wachoiva's Loss Mitigation Manager. 661-290-3837

I am continually asked by clients on our listing appointments, "what are the benefits of doing a short sale vs letting the property go through foreclosure?" Without knowing the seller's financial situation, this can be difficult to answer because sometimes it's better to let the property go to a foreclosure because of California's Anti Deficiency laws and the protections they provide. 

With that being said, in summary a seller can benefit from a short sale in the following ways.

* The most important, a seller can avoid having a "foreclosure " on their credit report.

*According to recent Fannie Mae lending guidelines, you can be eligible to qualify for a Fannie Mae    backed loan two years after the short sale completes. 

*Assuming the seller is already not making mortgage payments, they can continue to live in the property and not make payments during the short sale. The lender of Record actually prefers that the borrower continue to live in the property. Statistically, occupied homes tend to be better maintained then vacant properties, making the property more marketable.

*Most lenders feel that staying in the house is the  "right thing to do" when in default. They tend to feel walking away from the house is irresponsible and unfair to the lender.

*Sellers often do not understand that when doing a short sale, the senior lien holder will pay for the costs of the sale.(i.E, commissions,escrow fees, title insurance, deliquent property taxes, ect.)

Here are the risks associated with Vacancy that lenders are faced with and why they prefer the borrower to stay in the home during the short sale process.

Vacancy risks can be broken down to three (3) primary categories.

1.  Maintenance:

Maintenance issues on vacant properties stack up quickly. Lenders take on the expense of securing & maintaining the the property ahead of the foreclosure. Lenders hire costly preservation companies to maintain the property.

2. Theft & Vandalism:

Vacant properties are easy target for thieves looking for appliances and/or for the copper out of A/C units and pipes.  Also vacant properties are a magnet for squatters and or juveniles that cause thousand of dollars of damage, all costs the lenders assumes in a foreclosure. Municipal fines can run as high as $1000 per violation, per property, per day for properties not maintained.

3. Vacant Property Ordinances:

 Cities and counties across the country have drafted vacant property ordinances aimed at two things:

 a) Reducing neighborhood blight by pushing lenders with the threat of financial penalties, to secure, monitor and maintain vacant bank owned properties.

b) Generating revenue, municipalities are looking for ways to make up for revenue short falls they face.

Each vacant property ordinance is different. It is estimated that there are over 5,000 distinct & separate vacant property ordinances across the country.

If your struggling with your mortgage, you owe it to your self to understand what pre foreclosure options you have.  Jennifer and I have the training & experience to educate homeowners on the options they qualify for.  If your looking for ways to minimize your financial loss and limit the damage to your credit history you need a trusted professional, trained in the pre foreclosure process.  Jennifer and I have obtained our Pre Foreclosure Specialists certification and the Certified Distressed Property Expert designation.

Also if you are struggling with a Wachovia, World Savings and Golden West mortgage Jennifer and I have a short sale manager we can put you in direct contact with that will explain your pre foreclosure options with these loans.

Wachovia Streamlines Their Short Sales process!

North Los Angeles Homeowners struggling with  Wachovia, Golden West or World Savings loans, would you like to speak directly with a Short Sale Manager able to explain, handle and approve your Short Sale?

Jennifer and I have recently been assigned a manager from Wachovia's short sale division. Our Wachovia representative will meet with all the homeowners we represent that are interested in doing a short sale to avoid foreclosure. 

I'm sure as homeowners you have heard the horror stories about the short sale process, the time they take to get the approval and the ramifications associated with doing a short sale.  Wachovia understands the position this market has created and now offers Realtors, homeowners and buyers the assistance necessary to streamline the short sale process and approve these transactions within traditional time lines.

Per Wachovia guidelines our Wachovia representative will meet with homeowners to answer their questions and ensure their cooperation. The beauty of this program is, you don't have to be behind on payments, however there must be a verifiable hardship in order to participate in this program.

Here are some of the programs highlights:

*One local point of contact for Realtors and customers to review strategy, submit offers and close the transaction

*On-site property and seller interviews by Short Sale Manager

*Approvals in 7-10 days 

*Average closing from start to finish:  48 business days

WHAT DOES THIS MEAN TO YOU?

*Working with a Bank that "Get's It!"

*Professional Local Partner paired with you to help facilitate the closing of the sale

*Unprecedented Turn Around Time for Approval

*A Short Sale Transaction that will close in the Same Time Frame as a Regular Purchase

*YOUR VOICE IS HEARD!

If you have a Wachovia home loan that is in danger of defaulting, please give us a call. For more information on this program, please contact Jennifer & Gary Ricco of Keller Williams VIP Properties 1 (661) 290-3837.

I have been through 8 homes, either outbid or short sales going under review for "modification". It is extremely frustrating. Seems to be a shortage of homes that fit our criteria, should I hang in there and relax, or put it off until next year? Will the $8K be there next year or is it over in 2009?

Frustrated over the housing market in Santa Clarita.  We finally decided to stop renting and jump into this market.  I went to a direct lending institution and we were pre-approved for a decent amount for the income that I make. Armed with a pre-approval letter, proof of funds, Fico scores and a 3% earnest money deposit we found a Realtor to work with who has patience beyond measure but we keep running into the same problem every single time. We find a place that suites all of our needs, is in a decent location and we would be able to see ourselves living there for a few years. We put offers in on 4 places thus far, every single time we have had to wait 4-5 days and get STOMPED on by someone with a better offer, granted they would never really ever tell us the amount of the other offers.  This situation has been ridiculous, we have been almost $20,000.00 over the asking price in some cases and we would still lose the bid.  Its become so frustrating, what are we to do in this market to position ourselves to get our offer accepted?

These are some of the stories we have heard from frustrated home buyers and I'm sure, if your trying to purchase a home right now you have a story similar to these.  The competition is fierce in Santa Clarita as it is in all of California as well.  Its important to understand we are experiencing historically low levels of inventory to sell here in Santa Clarita and all across California.

We can all speculate how this market is being manipulated by the government & the banks. In reality, the market it is what it is and takes highly trained professionals driven by ethics, not commissions to get the job done.  As Realtors, Jennifer and I have sought the best training our industry has to offer.  We have both received our Pre Foreclosure Specialists certifications www.partnerfirst.org and the Certified Distressed Property Expert designation www.cdpenow.com.  This training ensures sellers & buyers are working with two highly trained professionals who are staying on top of this changing real estate market.  Our knowledge and professionalism helps alleviate the frustrations home buyers are experiencing in this market. 

This is how Jennifer and I position home buyers to win bidding wars with their offers.

First; As a Realtor we have to understand your purchasing power, which will paint a clear picture of the areas/properties in Santa Clarita you can afford. Closing cost credits, HOA dues & Mello-Roos expenses are major factors that need to be addressed.

Second; Jennifer and I study the comps in each particular neighborhood. Looking within a 1/2 mile radius first, then 1 mile out should their be no current comps and compare per-square-foot costs. We examine the median prices of the pending against the median prices of the solds.  We use only the comps of homes that match as closely as possible to the home you want to buy.

Prior to showing the property we always talk with the listing agent in a effort to determine a price to offer, see if the listing agent has a ton of offers and if the property is still available.  These facts will often help determine if you have to offer more than the list price.  Jennifer and I will then suggest you offer a price within that range, knowing it will not appraise, at which point your the only offer to renegotiate with.

Finally; Put down at least a 3% earnest money deposit, of the asking price. You're going to put the money into escrow anyway, so do it upfront.  Jennifer and I always write a letter to the seller, explaining why you want to buy that home and submit it with your offer.

Here is a link to our FREE MLS search engine. Its very user friendly.  If your looking to make a purchase in this market please call us for a consultation, we'd be happy to help you understand our local market conditions. http://www.santaclaritavalleyhomesonline.com/buyers.htm

If your struggling with your mortgage payments call us for a free consultation, we're here to educate you on the options you qualify for whether its keeping you in your home or selling it through a short sale.

Searching for bank owned & short sale properties? Our FREE search IDX is powered by Google Maps. If your searching for bank owned or short sale properties go to www.santaclaritapreforeclosurespecialists.com  When this page opens click on the middle icon below the photos, titled "short sales/REO's"

Once the Pre Foreclosure/Foreclosure page opens, you will see the Google map to the right. This tool is very interactive. By clicking on the green dots you will see all the pre foreclosure & foreclosure listings in that area.  Just above the list of properties to the left you will see 2 tabs titled search & results.  By clicking on the search tab you can change your search criteria.  The results tab will show you the properties matching your search.  Clicking on the property photos will provide details & information about the property.

You can also drag the Google Map around to the area you want to search in. For example, lets say you want to find bank owned and short sales in Thousand Oaks. Click on the minus sign on the zoom tool until you can see Thousand Oaks. Then click on the green dot in Thousand Oaks and all the listings will show up. Repeat the process for any city you want to search in.

This system also gives you the ability to create an account so you can track your favorite properties. The system will automatically notify you of price reductions and send you emails when new properties come on the market that meet your search criteria.  If you have questions about any of the properties, you can email those questions and get answers hassle free.

Here are the National foreclosure & default numbers according to the Mortgage Bankers Association for the 2nd quarter of 2009. 

These numbers were provided by the Mortgage Bankers Association,which they distribute quarterly.  They are based on 45,000,000 mortgages and are seasonally adjusted.

National numbers on all Mortgages

4.30% in foreclosure    

8.86% in default (30+ days late)

13.16% Total in Default   

National numbers on Prime Mortgages

3.00% in foreclosure

6.41% in default (30+ days late)

9.41% Total in default    

National numbers of Subprime Mortgages

15.05% in foreclosure

25.35% in default (30+ days late)

40.40% Total in default  

National numbers of FHA Mortgages

2.98% in foreclosure

14.42% in default (30+ days late)

17.40% Total in default

National numbers of VA Mortgages

2.07% in foreclosure

8.06% in default (30+ days late)

10.13% Total in default   

All Mortgages - 2009

As you can see the numbers in default are much higher then those in foreclosure, reason being is the government put a moratorium on foreclosures which has slowed the foreclosure process.  Also Freddie Mac and Fannie Mae have publicly stated they want to move distressed assets through short sales vs acquisition and REO. President Obama's efforts and programs have given the banks incentive to complete more loan modifications where homeowners qualify and to streamline the short sale process for those who don't qualify.

To complete a short sale and successfully negotiate its close in today's market conditions requires a Realtor who has received Certified training as a Pre Foreclosure Specialist.  In many subdivisions as many as 86% or more of the properties active on the MLS are distressed (pre-foreclosure, short sale, bank owned). With 86% of an area's listings being distressed, we have seen as high as 80% or more of an area's closings come from distressed properties.

If your struggling to make your mortgage payment or have missed three or more mortgage payments, it's time to take action.  Don't gamble with your financial future, As a Certified Pre Foreclosure Specialist with a Certified Distressed Property Expert designation, my wife and I have helped homeowners avoid foreclosure and get on with their lives.  You owe it to yourself to learn what options are available to minimize your financial loss and limit the damage to your credit history.  Our consultation is free, educational and confidential. 

Whether your looking to buy or sell, it's critical to select a Realtor who understands this market, has your best interest in mind and the ability to get the job done.  Please contact, Jennifer & Gary Ricco at Keller Williams VIP Properties, we're specialists in Santa Clarita's Pre Foreclosure Real Estate.  661.290.3837 Please visit us at www.SantaClaritaPreForeclosureSpecialists.com

Please visit www.PartnerFirst.org and www.CDPEnow.com to learn about the training we received and networks Jennifer and I are affiliated with.

For the past 2 years I have been following the number of mortgage defaults and developing a business to help struggling homeowners.  Here is a post I wrote back in April showing the foreclosure trends. http://activerain.com/blogsview/1013521/-national-foreclosure-default-numbers-continue-to-rise-fouth-quarter-2008  The folowing will show you we are not out of the woods yet.

Home sales jumped 7.2% between June and July, the largest increase in over a decade with the fastest pace in nearly two years. However, according to the National Association of Realtors(NAR). Prices are down 15% compared to last year.

The banks along with the government moratorium on foreclosures have fostered a sellers market to slow and stop the devaluation of home prices. A combination of distressed properties, seasonal trends, low interest rates, and tax credits for first-time buyers is working its magic. Several issues have me worried that instead of an end to this housing nightmare, we are about to be hit by another wave of foreclosure.

With a large percentage of sales focused on foreclosures, short-sales, or other forced transactions rooted in financial distress, our current buying trends are by no means normal. It's no wonder, with the Mortgage Bankers Association (MBA) reporting that more than one in eight mortgage holders are in some stage of delinquency or foreclosure. http://www.mortgagebankers.org/NewsandMedia/PressCenter/68008.htm

In July foreclosures jumped 7% compared to June.  With subprime borrowers unable to refinance loans and prime borrowers unable to pay their bills because of job loss we will see default numbers continue to rise. According to the MBA survey, 58% of new foreclosure starts originated in the well-to-do prime loan category, up from 44% last year. Meanwhile, subprime borrowers were responsible for only 33% of foreclosures, down from 49% last year. As foreclosures affect a larger and larger swath of the population, it will only add to the number of properties on the market and prices will naturally gravitate lower.

The major problem were facing now is the wave of loan resets in 2010 and 2011. As you can see in the chart below, a large number of prime, Alt-A, and Option ARM borrowers will be facing a higher payment, due to a mortgage rate reset, just as the housing market digests the fallout from the subprime problem of 2007 and 2008. Notice the reset activity for 2009.  Should the economy actually start recovering, the Federal Reserve will have no choice but to raise interest rates during this period.

We also have an inventory issue. Despite a spike in sales, the inventory of existing homes for sale actually increased 7.3% to 4.1 million last month nationally. Here in Santa Clarita, California our inventory is at historically low levels, however with the foreclosure moratorium being lifted and homeowners attempting to short sell we could see a wave of properties hit the market by late fall.   

Whats alarming to me is what Zillow found in it's latest survey.  Zillow found that a full 81% of homeowners believe their homes value wont fall in value over the next six months. Adding to the perception that people are losing touch with reality, only 60% believed the value of their home had fallen over the last year; when in reality 83% of all homes actually lost value during that time.

My wife Jennifer and I are here to help homeowners who are dealing with foreclosure.  After serving in the Military and Law Enforcement we pride ourselves in doing the right thing for those in need.  Now is not the time to gamble with your financial future, you need a Certified Pre Foreclosure Specialist who understands this market and has the experience to get the job done. Call for your free consultation. 661-290-3837 We offer & extend our expertise from Santa Clarita to Oxnard through Thousand Oaks and the San Fernando Valley. 

I just received a Notice Of Default, now what?  

For many people, the prospect of being unable to make their mortgage payment paralyzes them with fear and anxiety. They stop opening the mail, start avoiding phone calls and procrastinate on paying the bills. The fastest way to feel relief if you are falling behind on your mortgage is to do something about it. Whether you gather your bill statements, apply for a new job or call your lender to explain your situation, moving into action will prevent you from waking up to find a Notice of Trustee Sale posted on your front door. By the time that happens, there is not much you can do to save your home.

If you have attempted to do a loan modification and it looks like you will not be able to work out a solution with your lender or refinance your home, you should put it up for sale -- immediately. The faster you get your home sold, the less damage will be done to your credit and your psyche!

Selling your home in today's market requires a real estate agent who has certified training as a Pre Foreclosure Specialist.  When attempting to avoid a foreclosure, it's critical to have a trained professional representing your interests.  Any Realtor that is specializing in Pre Foreclosure Sales should provide you with references.  To ensure you are working with a professional that has experience with short sales, I will put you in contact with homeowners I have recently & successfully represented in a Pre Foreclosure Sale (short sales). Pre Foreclosure short sales are difficult transactions which require a skilled negotiator who knows the foreclosure process inside and out.   

Here in Santa Clarita and across California real estate inventory is at an all time low. There are currently 632 active listings on the market in Santa Clarita. Many are getting multiple offers the day they are listed.  Homeowners wanting to avoid foreclosure have an opportunity to take advantage of this sellers market.

As Certified Pre Foreclosure Specialist with a Certified Distressed Property Expert designation, I have the training and experience to assist homeowners who are facing foreclosure.  Don't let your fear or embarrassment cause you to wake up to a Notice Of Trustee Sale posted on you door.  If you have received a Notice of Default you must act quickly. 

Please take the time to contact me for a free consultation and a current market analysis of your property.  You owe it to yourself to learn what options you can utilize to avoid foreclosure.  Due to my Law Enforcement background, all financial information disclosed is confidential and protected.