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As our subscribers know...Kim and I are always looking for the latest and greatest news on Short Sales.
I liken this news to "Mans First Steps on The Moon"...Sounds extreme, I know, but this is just the beginning.
A lender from California is offering an FHA 3.5% purchase program for current homeowners that are selling their property on short sale.
The program works like this...
The short sale of the current home and timing the purchase of the next home run simultaneous.
The day after the "short sale" home sells, the closing of the "new" home takes place.
Yes...this can be a bit tricky with the unpredictable length of the short sale approval and placing an offer on a property on today's market...however a huge win and step in the right direction for our Short Sale sellers.
(Real Estate Agents) This part is for you.....!
Imagine...you could actually "quadruple end" a sale.
How does that work?
You list short sale #1.
You find the buyer for short sale #1.
You List short sale #2.
You Sell property #2 to the seller of the property #1.
Everyone Wins!
And, the program is currently available in 45 states... (program not currently available in Alaska, Michigan, Missouri, Ohio and Wisconsin).
Scenario:
The Smiths bought their home in 2005 for $400,000 with 5% down. It's now worth $200,000+, but they still owe $390,000. You negotiated to short sell it for $225,000. During the short sale process you got them approved for a new maximum loan of $376,000. Upon closing the short sell of their home, they closed on their new nicer, bigger home for $375,000 and didn't have to move into a rental apartment for 2 to 3 years.
It doesn't stop there... Past Short Sale Clients...
If you have sold a home on a short sale and want to buy another home, as long as you meet some additional criteria...paying your rent on time for a year...you may also qualify for this program.
Your asking...what is the criteria?
Here it is:
(1) Purchase price of new home cannot exceed original (short sell) home loan(s).
(2) Minimum 640 FICO Credit Score throughout the Short Sell and New Home purchase process
(3) Adhere to HUD County Limits on New Loans
(4) No Mortgage "lates" last 12 months, nor through the new home purchase
(5) There are no income limits
(6) Non owner-occupant, co-borrowers are allowed
(7) Competitive FHA lending rates available for this program
(8) Must qualify with normal income ratios
(9) 3.5% minimum down payment on new home ~ Gifts are OK
It appears that ywo Loan Modification Scam victims took their anger out on the perpertraitors...now they are facing Life in Prison!
It appears that these two Sothern California homeowners who had hired "Loan Mod Experts" felt that since nothing was happening with their modification that they would simply get their money back or beat it out of them.
Well that back fired and the 2 home owners along with 3 assailants are facing:
False imprisonment
Robbery
Extortion
Yada,Yada, Yada
Lesson Learned...
"Vengence is Mine...Sayeth the Lord"
As seen in Mortgage Ledger:
"One California couple facing foreclosure decided to violently take their desperation and frustration out on the very people they hired to help them save their home.
Daniel Weston and Mary Ann Parmelee, both 52, and three other people are charged with torturing two loan-modification agents they hired to help them try to save their home, authorities said.
The two are accused of luring their two victims, who they suspected of fraud, to an office where they tied the men up, held them against their wills for hours and beat them, according to a spokeswoman for the Los Angeles County district attorney.
According to court documents, the five assailants, who have all since been arrested, set out to “cause cruel and extreme pain and suffering for the purpose of revenge, extortion, persuasion and for a sadistic purpose, inflict great bodily injury.” Both victims were treated at a local hospital and have now been released.
Weston and Parmelee own a home in La Canada-Flintridge, a suburb outside of Los Angeles, that fell into foreclosure.
The pair then allegedly sought loan modification assistance from the victims but eventually came to believe that nothing was being done in their favor and then requested their money back, as was written in a statement from the Los Angeles County district attorney’s office.
Weston, Parmelee and the three other defendants were each charged with two counts of torture, two counts of false imprisonment by violence and two counts of second-degree robbery, according to a criminal complaint filed against them.
Weston and another defendant are accused of carrying out the beatings while their three co-defendants watched, prosecutors said.
Each count of felony torture, defined as inflicting "great bodily injury" for the purpose of "revenge, extortion, persuasion and for a sadistic purpose," carries a maximum penalty of life in prison.
The case became publicly known as Los Angeles officials and community groups began a national public-awareness effort urging homeowners to beware of bogus loan-modification programs and to report suspicious activity to authorities."
Today's article in The Truth About Mortgage.com it was reported that new, previously unaffected metro cities around the US are being bitten by the Foreclosure bug:
Chico, CA 98% increase over last year
Reno-Sparks, NV up 80%
Prescott, AZ up 77%
Jacksonville, FL & Rockford, Il up 64%
Boise City-Nampa, Idaho & Salt Lake City, Ut also made the charts
"While cities in California, Florida, and Nevada continued to account for the 10 highest foreclosure rates among metro areas in the third quarter, five reported decreased year-over-year activity, according to RealtyTrac.
Meanwhile, new foreclosure hot spots emerged, including the Chico, CA metro, where foreclosure activity was up 98 percent year-over-year, and the Reno-Sparks metro, where activity was up 80 percent from a year ago, per RealtyTrac’s Q3 2009 Metropolitan Foreclosure Market Report.
The Prescott, Arizona metro saw a 77 percent increase in foreclosure filings, foreclosure activity in Jacksonville, Florida and Rockford, Illinois jumped 64 percent, and the Lansing-East Lansing, Michigan area saw a 41 percent increase.
“Rising unemployment and a new variety of mortgage resets continued to gradually shift the nation’s foreclosure epicenters in the third quarter away from the hot spots of the last two years and toward some metro areas that had avoided the brunt of the first foreclosure wave,” said James J. Saccacio, chief executive officer of RealtyTrac.
“While toxic subprime mortgages drove much of that first wave of foreclosures, high unemployment and exotic Alt-A Option ARMs are spreading the foreclosure flood to more metro areas in 2009.”
Among the top 50 metro foreclosure rates, the biggest movers year-over-year included Boise City-Nampa, Idaho, and Provo-Orem and Salt Lake City, Utah.
The Las Vegas metro continues to post the nation’s highest foreclosure rate, with one in 20 housing units receiving a foreclosure notice during the quarter, up nine percent from the previous quarter and 54 percent from a year ago."
This is great news and it's with bi-partisan agreement. It appears that the first time home buyer credit will be extended...but no specifics.
Talks have it so that the plan may be:
in place through the end of 2010.
May be a "step-down" plan that will reduce the benefit every quarter.
A credit of 10% of sale price with a Max cap of $7,290.
Also may benefit "step-up" buyers...buyers who have lived in their home for more than 5 years and buying "up."
However it shakes...this is great news.
Below is the supporting article from DSNews.com release today:
"The U.S. Senate’s chief Democrat, Majority Leader Harry Reid (Nevada), said Wednesday that his party has reached a consensus to extend the first-time homebuyer tax credit, which is set to expire November 30.
Senate Banking Committee Chairman Christopher Dodd (D-Connecticut) has voiced the same sentiment to the media today, as well.
But the party support isn’t one-sided. Reuters reported that the chamber’s foremost Republican, Sen. Mitch McConnell (Kentucky), acknowledged that most senators support the measure, quoted by the news agency as saying he shares Reid’s view.
Reid summed it up on the Senate floor when he said, “There has been general agreement by a significant number of senators, Democrats and Republicans, to get this done.”
As DSNews.com reported Tuesday, the proposal gaining the most favor among Senators was an amendment offered up by Reid and Senate Finance Committee Chairman Max
Baucus (D-Montana), which would extend the tax incentive until the end of 2010, but reduce the credit amount with each quarter.
Take two: The tax break measure has gotten yet another makeover. The latest version reduces the credit to 10 percent of the sale price, with a cap of $7,290 – as opposed to the $8,000 maximum currently in place. The benefit could be applied to home sales signed – not closed – by April 30, 2010, allowing 60 days beyond that date for closing.
It would also be opened up to buyers who have lived in their current residence for at least five years, so-called step-up buyers. The income limits for first-time homebuyers would stay the same – $75,000 for individuals, $150,000 for couples – but increase for step-up buyers to $125,000 for individuals and $250,000 for couples.
Andrew Parmentier, a managing partner at Height Analytics, a research firm in Washington, told Bloomberg News that the demand for new homes and condominiums may more than double with step-up buyers as part of the equation. “You just opened up a whole new pool of people who can buy into those empty homes and empty condos that were built out,” Parmentier said – a move that would aid the existing-home market as well, as overall inventory levels are reduced.
A Senate vote on the credit extension was expected to come last night, but reportedly got entangled in legislative procedural issues. The tax credit amendment did not get attached to an insurance benefit bill, which did pass Tuesday night, as intended. Despite the red-tape roadblock, senators say a decision will be made sometime this week"
On October 14, Lord Christopher Monckton, a noted climate change skeptic, gave a presentation in St. Paul, MN. In this 4-minute excerpt from his speech, he issues a dire warning to all Americans regarding the United Nations Climate Change Treaty, scheduled to be signed in Copenhagen in December 2009.
Lord Monckton served as a policy adviser to Margaret Thatcher. He has repeatedly challenged Al Gore to a debate to which Gore has refused. Monckton sued to stop Gore’s film “An Inconvenient Truth” from being shown in British schools due to its inaccuracies. The judge found in-favor of Monckton, ordering 9 serious errors in the film to be corrected. Lord Monckton travels internationally in an attempt to educating the public about the myth of global warming.
There has been considerable debate raised about Monckton’s conclusion that the Copenhagen Treaty would cede US sovereignty. His comments appear to be based upon his interpretation of the The Supremacy Clause in the US Constitution (Article VI, paragraph 2). This clause establishes the Constitution, Federal Statutes, and U.S. TREATIES as the supreme law of the land. Concerns have been raised in the past that a particularly ambitious treaty may supersede the US Constitution. In the 1950s, a constitutional amendment, known as the Bricker Amendment, was proposed in response to such fears, but it failed to pass. You can read more about the Bricker Amendment in a 1953 Time Magazine article.
for two lucky customers, up to a maximum of $60,000 each.
Of course, if your mortgage is interest-only, you’ll only receive 12 months of interest-only payments.
The prize also doesn’t include taxes and insurance; you’re on your own there.
And if you’re not current on your mortgage, don’t expect the prize to be honored.
The winners will receive a one-time payment at some point in the first quarter of 2010, with drawings taking place on or about October 26 and December 11.
There are three ways to win; you’ll be automatically entered in the contest if you sign up for Wells Fargo Online and simply click through to your mortgage account, or if you sign on and view your mortgage account online.
You can also enter the contest by sending in a postcard with your details via snail mail (see rules for important dates and terms).
It looks like Wells Fargo is attempting to get customers to manage their mortgages online, perhaps in the hopes that some will set up automatic payments.
Since Countrywide collapsed, Wells Fargo has been the top mortgage lender in the United States, accounting for 24.77 percent of the total market share in the first-half of this year.
Loan fundings at the company were up 63 percent compared to the same period a year ago; unfortunately, they’ve also got a stable of bad loans, many acquired via their merger with Wachovia."
On the heals of Citi's announcement of $1Billion + losses this quarter...Bank Of America announces $2.24 Billion in losses.
I think we all know the truth...these banks are insolvent. CEO's just can't admit it when they have failed. It would be a punishing blow to the US, however, the truth is becoming more apparent to all that have some sense of economic understanding. Banks are failing due to thier greed.
The banks are already punishing the folks that do payback loan by raising interest rates and cutting off thier lines of credit. These "good" clients are going elsewhere to get there credit fix.
I'm gonna throw this out and say that Citi, B of A and Wells will all fail or be taken over in the next year...
The writing is on the wall.
Below is more ammunition:
"
BofA Loses $1bn as Net Loss on Home Loans Widens
By AUSTIN KILGORE October 16, 2009 8:59 AM CST
Bank of America (BAC: 17.35 -4.14%) lost $1bn or $0.26 per share during Q309, compared to a profit of $1.2bn during Q308.
But company year-to-date income through Q309 was $6.5bn, compared with $5.8bn during the same period of 2008. BofA paid $1.2bn in preferred dividends for the quarter, including $893m in dividends to the US government.
The company’s net loss on the home loans and insurance segment widened to $1.6bn from a $54m net loss in the year-ago quarter.
BofA funded $95.7bn in first mortgages, selling purchase or refinance loans to nearly 450,000 borrowers, including $23.3bn in mortgages to 154,000 low- and moderate-income borrowers during the quarter. About 39% of all the first mortgages were for purchases.
Year-to-date at the end of Q309, BofA modified the mortgages of approximately 215,000 customers, and an additional 98,000 BofA mortgage customers are in the trial stage of a Making Home Affordable Modification Program (HAMP) workout.
BofA increased its provision for credit losses to $2.9bn “driven by continued economic weakness and lower home prices,” and due to further deterioration in the purchased impaired portfolio BofA holds from its acquisition of Countrywide. The company added $2.1bn to the reserve for credit losses — less than Q209, BofA said, as delinquencies improve in the unsecured consumer portfolios.
All told, BofA reported $9.6bn in net charge-offs in the quarter, $923m higher than in Q209.
“The company’s core performance was impacted by a number of non-core items,” said president and CEO Kenneth Lewis. “The market’s improved view of Bank of America’s credit cost the company due to non-cash marks on liabilities.”
Earnings were also affected by $2.6bn in pretax mark-to-market and credit valuation adjustments on certain liabilities including Merrill Lynch structured notes. BofA reported a $402m pretax charge to pay the US government to terminate its asset-guarantee term sheet.
According to a recent report release by RealtyTrac, in the last quarter (July, August, September 2009) the US has experienced the highest foreclosure activity since RealtyTrac began reporting on the foreclosure market.
Activity rose 5% over last quarter or 937,840 properties.
States with the highest activity
"California, Florida, Arizona, Nevada, Illinois and Michigan accounted for 62 percent of the nation’s total foreclosure activity in the third quarter, with 579,541 properties receiving foreclosure filings in the six states combined.
With 250,054 properties receiving foreclosure filings during the quarter, California accounted for nearly 27 percent of the nation’s total. The state’s foreclosure activity decreased nearly 2 percent from the previous quarter thanks to a 10 percent drop in default notices, but scheduled auctions increased 4 percent from the previous quarter and REOs increased 12 percent from the previous quarter.
Florida foreclosure activity decreased less than 1 percent from the previous quarter, but the state still posted the second highest foreclosure activity total for the third quarter. Foreclosure filings were reported on 156,924 Florida properties, a 23 percent increase from Q3 2008. Default notices in Florida decreased 6 percent from the previous quarter while scheduled auctions increased 5 percent from the previous quarter and REOs increased 16 percent from the previous quarter.
Arizona posted the nation’s third highest foreclosure activity total in the third quarter, with 50,342 properties receiving a foreclosure filing during the quarter — a 5 percent increase from the previous quarter and a 25 percent increase from Q3 2008.
Nevada posted the nation’s fourth highest foreclosure activity total, with 47,925 properties receiving a foreclosure filing in the third quarter, followed by Illinois, with 37,270 properties receiving a foreclosure filing, and Michigan, with 37,026 properties receiving a foreclosure filing. All three states reported increasing foreclosure activity from the previous quarter and from Q3 2008.
Other states with foreclosure activity totals among the nation’s 10 highest were Georgia (33,385), Texas (29,838), Ohio (29,645), and New Jersey (18,108)."
These #'s are huge. If we keep on this track, we're adding almost 4Million foreclosures to our inventory this year alone...how will the media spin this?
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