For once I agree with something happening on the West Coast regarding Real Estate--they just passed SB 306, which requires lenders to respond (accept, reject, or deny) IN WRITING within 21 days to a short sale request (with full documentation, of course).  That's not all, of course, there's also something about a 4 DAY response for offers submitted with HUDs (don't we ALWAYS do that?!), but the section is below--read it yourself!  As in anything, the law is subject to interpretation, and my statements are my opinion only, I do not represent myself in any way to be an attorney, so consult your own.

Considering the number of short sales transactions I've been dealing with for OVER 6 MONTHS, this sort of legislation is long overdue, and Realtors in Florida need to be pressuring our fine Representatives to take similar action, don't you think?!?

Here's what the new CA law says (and GO ARNIE!):

Real property transactions.

LEGISLATIVE COUNSEL'S DIGEST

SB 306, as amended, Calderon. Real property transactions.

(1) Existing law requires that, upon a breach of the obligation of

a mortgage or transfer of an interest in property, the trustee,

mortgagee, or beneficiary record a notice of default in the office of

the county recorder where the mortgaged or trust property is

situated and mail the notice of default to the mortgagor or trustor.

Existing law, until January 1, 2013, prohibits a mortgagee, trustee,

beneficiary, or authorized agent from filing a notice of default for

an additional 30 days on loans made between January 1, 2003, to

December 31, 2007, that secure residential real property, under

certain circumstances.

This bill would, until January 1, 2013, provide that these

provisions apply to mortgages and deeds of trust recorded between

January 1, 2003, to December 31, 2007, secured by owner-occupied

residential real property containing no more than 4 dwelling units.

The bill would also, among other things, revise the declaration that

is required to be filed in this connection with the notice of

default.

(2) Existing law states legislative findings and declarations with

regard to the duty loan servicers have to maximize net present value

under their pooling and servicing agreements, stating that their

duty is owed to all parties in a loan pool, not to any particular

parties, and that a servicer acts in the best interests of all

parties if it agrees to or implements a loan modification or workout

plan, as specified.

This bill would specify the application of these findings and

declarations to certain investors.

(3) Existing law requires a trustee or authorized agent, upon

posting a notice of sale, to post and mail a specified notice

addressed to residents of property subject to foreclosure upon

posting a notice of sale. Existing law requires a notice of sale

to be recorded in the county in which the property, or some part of

it, is situated at least 14 days prior to the date of sale.

This bill would specify how and when this notice is to be mailed.

This bill would extend the time during which the

notice of sale must be recorded from 14 to 20 days.

(4) Existing law requires a beneficiary on a deed of trust or a

mortgagee on a mortgage to prepare and deliver a beneficiary

statement or a pay-off demand statement within 21 days of receipt of

a written demand from specified entitled parties. Existing law

requires the written statement to include information reasonably

necessary to calculate the payoff amount on a per diem basis for the

period of time, not to exceed 30 days, during which the per diem

amount is not changed by the terms of the note.

This bill would revise the period of time during which the

information reasonably necessary to calculate the payoff amount may

be prepared.

The bill would also , until January 1,

2014, require a beneficiary to prepare and deliver

, within 21 days upon written demand,

of the receipt of a short-pay request, as defined, to prepare

and deliver a short-pay demand statement, which would be a

written statement, conditioned on the existence of a short-pay

agreement, that is prepared in response to a request from an entitled

person or authorized agent, setting forth an amount less than the

outstanding debt, together with any terms and conditions, under which

the beneficiary would execute and deliver a reconveyance of the deed

of trust securing the note that is the subject of the short-pay

demand statement. The bill would provide that the short-pay agreement

is an agreement in writing in which the beneficiary agrees to

release its lien on a property in return for payment of an amount

less than the secured obligation. The bill would permit a beneficiary

that elects not to proceed with the transaction that is the subject

of the demand short-pay request to

refuse to provide a short-pay demand statement, but would require

that he or she provide a written statement, indicating that the

beneficiary has elected not to proceed. The bill would provide that

if the terms and conditions of the short-pay agreement require

approval by the beneficiary of a closing statement prepared by an

escrowholder, approval or disapproval shall be provided not more than

4 days after receipt by the beneficiary of the closing statement, or

the closing statement shall be deemed approved, except as specified.

(5) The Escrow Law provides for licensing and regulation of escrow

agents, other than certain exempt persons, by the Commissioner of

Corporations. The law requires licensees to apply for membership in

the Escrow Agents' Fidelity Corporation, a nonprofit mutual benefit

corporation, which is established to indemnify its members against

loss of trust obligations. The law limits required membership in the

Escrow Agents' Fidelity Corporation who engage in certain kinds of

business. Existing law defines and regulates the activities of

exchange facilitators and excepts from the definition of exchange

facilitator escrow companies, under specified circumstances.

This bill would provide escrow transactions that involve money or

property held or deposited with a person acting as an

pursuant to specified actions of an exchange

facilitator regarding deposit of funds are not

transactions that require a licensee to have membership in the Escrow

Agents' Fidelity Corporation.

Here's the background:

This is the FOURTH time I've sold this house--the first three times the 1st (Countrywide, now Bank of America) took so long to work it through their system I lost each buyer prior to closing.  The current offer on the table, approved by BofA and Freddie Mac after 4 months, has now been bounced back by the collections agency initially hired by WaMu, now Chase.

What these really POLITE and INTELLIGENT (note the sarcasm) guys who work for Tate & Kirlin are telling me now is that, since it took so long to get an approval from BofA, the second is now under Chase, and they will take no less than $8,000, when they had agreed to $2000 under WaMu, and they want every penny they can get, out of my whopping 6% (1/2 on $49K=less than $1500).

The issue(s):

• This is Freddie Mac, who will not negotiate below a 6% commission.
• even if we agreed to lower our commission, it would go to the first, not the 2nd lien.
• they will receive nothing if the 1st forecloses, which it will if this sale does not go through.

The only advice I have gotten, from anyone, is that I'll have to re-negotiate with these people, when there IS no negotiating with these people--I can't change anything on the already-approved contract with Freddie.

Anyone have any other ideas?  I have advised my client to seek legal representation, since I am pretty sure the 2nd mortgage falls under predatory lending practices, but I really see nothing else I can do.

Thoughts?  Comments?  HELP?!?

Yes folks, that's right--Green Genie has made her official debut, at my Tarpon Talkers Toastmasters meeting last week--with great trepidation and even a few genuine chuckles, I have released my nom de plume (or is she a pseudonym...or just a stage name?) into the world!

I was actually quite surprised when the audience laughed at 'her' first couple of jokes--I've never tried any sort of "meaning to be" funny stuff in public.  Now that I have, I do believe I'll do it again!

Green Genie was born to help me get the message out that it ain't so funny to be green--or maybe it is?

Three Easy Ways to Be Greener (according to Green Genie, of course):

1. Think Local:  the more you buy close to home, the more you support your local economy AND save lots of energy in shipping.
2. Recycle:  when we recycle our cans, glass, and plastic it;s much easier to be aware of what we are buying and how much of our "green energy" (aka dollars) goes to packaging, vs. the product itself!
3. Think BIG:  When making larger purchases, such as automobiles or other transportation, as well as appliances and HOMES--look for energy-efficiency, such as higher mileage, or Energy Star ratings.

Green Genie has lots more suggestions on how YOU can increase the green inside your wallet as well as in your environment, so STAY TUNED for more posts from her!

NAR issues Call to Action: Extend $8K credit

NAR Call to Action

WASHINGTON - Sept. 15, 2009 - The National Association of Realtors® (NAR) is calling upon its 1.2 million members to urge Congress to extend the successful homebuyer tax credit into next year.

Since the $8,000 first-time homebuyer tax credit's inception, 1.2 million new buyers have entered the market. Of those new homebuyers, 350,000 would not have purchased a home if the tax credit had not been offered, according to NAR. The credit is due to expire Nov. 30, 2009.

"Now is the time for Congress to keep this recovery going by extending the tax credit through 2010 and making it available to more homebuyers," says NAR President Charles McMillan. "We have all seen how the credit has been a spur to bring homebuyers into the market, and have seen the beginnings of a real recovery in the housing market. Housing has always led this nation out of economic downturns and can do so again."

NAR has asked all Realtors to write their U.S. senators and representatives to tell them of their successes with the tax credit thus far - and to press Congress to extend and expand it.

"The credit needs to be available for an additional period of time in order to sustain the progress that's been made, so we can continue to see our markets fully recover," McMillan says. "Uncertainty about the future of the credit will dampen consumer demand. The only way we can assure that the progress we've made can continue is to extend the credit and to do that now."

As the current deadline for the credit looms, potential homebuyers need to complete a contract, satisfy any contingencies, secure financing and go to closing by Nov. 30. In today's market, NAR estimates that it generally takes between 45 and 60 days from contract to closing.

"That means potential homebuyers who qualify must act now, and so must Congress," McMillan says.

 THIS IS IMPORTANT, REALTORS!!!  We all need to be writing our congress people to get them to extend the tax credit--there are buyers out there, many of them still fence-sitting or stuck in short sales negotiation, but they MUST close by Nov. 30th or lose that shot at $8000.

If you have not done so already (and even if you have!) write, blog, talk to everyone and anyone about extending this credit!!  Look at the statistics--nearly 35% of buyers this year would not have purchased if not for the tax credit--think of what the market would be right now without those buyers!

A WEALTH of knowledge here, whether you are an agent representing clients in short sale transactions, a buyer, or a seller in this minefield of a market!  Well done, Bryant!

This was so well-written and focused on one of the (rare) positives I had to re-blog!

I guess we all know the answer to that one by now:  Nothing!  There's nothing "short" about a short sale--ask me, as a person of diminutive height, I can tell you that short sales are nothing about shortness!  So, where from did this term derive, anyway?

Well, put simply, the real estate market is just like any other market--and selling short is market terminology.  When you sell a stock short, you are actually purchasing under the assumption that the future price of the stock will fall.  When you sell a property short, you are asking to purchase a property which has an existing lien currently worth more than the property in the current market.

A recent question on Trulia asked:

I am in the latter stages of a short sale. The listing has been as a 'active contingent short sale'. One day last week it disappeared from the website. The next day it was back on the web site, this time it was listed as 'pending'. What is the difference, why was it changed My agent tells me the listing agent told her the contract is on the supervisors desk at the bank with everything they need. That we just have to wait. It has been 3 1/2 months since we signed the contract. Also, this was listed as a "bank approved" short sale. If this is the case why the long wait. I know the story of short sales, this is our second attempt. The first time we heard something by now. Help!

The answer?  Read it here

I met Aniee last year--she called on one of my listings, looking for something she could purchase as a lease-option.  I could tell right away she was a 'can-do' kind of a person, her enthusiasm and sparkle (yes, I said sparkle!) virtually crackles right through the phone when she's happy.

Today she's not so happy--after over a year of painstakingly cleaning up a few minor credit issues, paying some things down or off, applying for CDC down payment assistance and attending the classes, having several offers fall through becasue the houses would not pass FHA or CDC inspections, AND after waiting six months to get an answer on our last offer--a short sale...

after all that...

Now, her mortgage broker says the only way she can get a loan is by coming up with 3.5% down on the house--the requirement for any FHA loan, one which she was told would not be necessary with the down payment assistance she's getting from the City of Largo. 

Aniee is a single mom, she's raising two kids by holding down two jobs while she also cares for her elderly father who was diagnosed with cancer this year--on top of everything else, she runs back and forth to his house to make sure he's eating, taking his meds, doing his laundry, and taking him for chemo treatments.  One of the primary purposes of buying this house is to consolidate the two households so that she can better care for him without impacting her children.

I don't know about you, but to me Aniee is one person who deserves a little help, and deserves to own her own home.  However, she has used all of her resources to pay down debts and no longer has the money available for the down payment she didn;t think she needed.

I'm not sure yet how this will turn out, but if there's anything I can figure out to help her with this, I will.  Anybody else have any ideas?

Take a look at this beauty!  Coveted Tarpon Springs waterfront neighborhood--walk to schools and Fred Howard Park (BEACH!), come see the REAL Florida:  www.TarponSpringsTreasure.com

Loretta J Buckner | Real World Properties, Inc. | 727-656-6206 811 Riverside Dr., Tarpon Springs, FL Champagne Taste on a Beer Budget! New Construction, never lived in--their loss is your gain! Master Suite (on entire 3rd floor) with wet bar and lux 4BR/3BA Single Family House offered at $480,000 Year Built 2006 Sq Footage 3,556 Bedrooms 4 Bathrooms 3 full, 0 partial Floors 3 Parking 4+ Car garage Lot Size 9,768 sqft HOA/Maint $0 per month DESCRIPTION Never lived in--champagne taste on a beer budget! Four bedrooms, three baths over 3500 sq ft of living space in prestigious Tarpon Springs. Walking distance to schools, park, and bayou--only one mile from Fred Howard Park and the Gulf! The entire top floor is a Master Suite with its own balcony and wet bar. All granite kitchen & baths, hardwood floors. see additional photos below PROPERTY FEATURES · Central A/C · Central heat · High/Vaulted ceiling · Walk-in closet · Hardwood floor · Tile floor · Family room · Living room · Bonus/Rec room · Office/Den · Dining room · Breakfast nook · Dishwasher · Refrigerator · Stove/Oven · Microwave · Granite countertop · Stainless steel appliances · Laundry area - inside · Balcony, Deck, or Patio · Yard COMMUNITY FEATURES · Tennis court(s) · Playground OTHER SPECIAL FEATURES · Room for a Pool · Two schools within walking distance · One mile from Fred Howard Park and the beach ADDITIONAL PHOTOS Photo 4 Photo 1 Photo 2 Photo 3 Photo 5 Photo 6 Contact info: Loretta J Buckner Real World Properties, Inc. 727-656-6206 For sale by agent/broker Equal Opportunity Housing Posted: Jul 27, 2009, 9:04am PDT