Aug. 13, 2009
C.A.R. Mortgage Update
This week's C.A.R. Mortgage Update contains information about dealing with loan servicers and current
mortgage rates.
Tips for borrowers dealing with loan servicers
Many homeowners have experienced difficulties and frustration getting through to their loan servicer when
trying to obtain a loan modification. To help alleviate some of the stress associated with this task, an
attorney with the National Consumer Law Center in Boston is offering the following tips:
• Consumers should keep detailed written records of every contact they have with their servicer,
including logs of phone calls and copies of written correspondence.
• If the servicer makes a promise, such as crediting a payment, modifying the loan, or stopping a
foreclosure sale, for example, the homeowner must get it in writing.
• When seeking a loan modification, consumers should send a request in writing asking the servicer
who owns the mortgage loan. Some banks and investors have policies on which loans they will
modify.
• Consumers should beware of servicers advising them to stop making payments because they have
applied for a loan modification. Instead, homeowners should continue making payments for as
long as possible, even if they cannot make the payment in full. Otherwise, the loan will accrue
more interest, and will cost more in the long run.
• Borrowers who feel they cannot resolve their problem or those who think their servicer may be
violating their rights are advised to contact a non-profit housing counselor or seek legal help.
Housing counselors can help negotiate a loan modification for free.
• Consumers can visit the Treasury's homeowners Web site www.makinghomeaffordable.gov to find
out if they qualify for a loan modification under the Obama administration's program Making Home
Affordable.
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/08/05/financial/f120204D63.DTL&type=realestate
To view additional articles, please visit the following:
U.S. mortgage rates rise in latest week -Freddie Mac
To read the full story, please click here:
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN1323518420090813
CNN Money
Buy foreclosures now -before it's too late
Buyers in many areas are finding that real-estate owned (REO) properties-homes that have been
repossessed by lenders and put back on the market-often are selling in one day, sometimes faster.
According to the founder of Foreclosure.com, offers on REOs are coming in immediately after the listing
comes on the market, and some homes have been put into contract in less than 90 minutes.
KEEP THIS IN MIND
• On average, inventories of California homes priced less than $300,000-the most-popular
price point for foreclosure buyers-have shrunk from a nearly 10-month supply a year ago, to
less than a three and a half-month supply in July, according to the CALIFORNIA
ASSOCIATION OF REALTORS® (C.A.R.)
• Because inventory levels of homes priced in the lower end of the market are low, some buyers
are finding that sellers are not willing to negotiate on the price. In many instances, sellers
expect the first offer to be the best and highest possible for the buyer.
• Instead of holding onto REOs for the best prices-and paying the property taxes and
maintenance and heating costs-many banks are selling the homes as quickly as possible,
according to Foreclosure.com. "In this market, if they can liquidate them fast, it makes more
sense to get them off the books," said the company's founder.
• Despite efforts by lenders and the government to prevent foreclosures, many economists and
housing analysts predict there will be another wave of foreclosures by year's end, and many of
those properties will be offered for sale. According to the U.S. Comptroller of the Currency, 53
percent of loans that were modified in the first half of 2008 fell back into arrears.
To read the full story, please click here:
http://money.cnn.com/2009/08/05/real_estate/buy_foreclosures_now/index.htm?postversion=2009080609
In Other News...
Mercury News
Silicon Valley real estate: The bidding war is back
The affordable end of Silicon Valley's housing market has taken off, with homes attracting dozens of bids in
a repeat of the overheated days of the dot-com boom and the housing bubble.
To read the full story, please click here:
http://www.mercurynews.com/realestatenews/ci_13028660
San Francisco Chronicle
More households on verge of foreclosure in July
The number of U.S. households on the verge of losing their homes rose 7 percent from June to July, as the
escalating foreclosure crisis continued to outpace government efforts to limit the damage.
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/08/13/BUSP197N26.DTL&type=business
Fresno Bee
Affordable housing in Valley gets a boost
For the second time in a month, the federal government has issued stimulus money to jump-start two
affordable-housing developments in the central San Joaquin Valley.
To read the full story, please click here:
http://www.fresnobee.com/real_estate/story/1583717.html
Bloomberg
Homebuilders eliminate frills as first-time buyers drive sales
Frugal first-time buyers are driving the new-home market with purchases of low-priced houses with no fills.
Sales of new homes costing less than $200,000 jumped to 47 percent of all transactions in June, up from 39
percent in May, U.S. Commerce Dept. data show.
To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=20601109&sid=akCaYx29BrI8
Los Angeles Times
Lenders hesitating to repossess California homes
The backlog of California homes in default, but not yet repossessed, keeps growing. At some point, many of
these properties will be repossessed and put back on the market.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-foreclose12-2009aug12,0,4827812.story
CNN Money
Home prices fall a record 15.6%
Median home prices fell a record 15.6 percent during the three months that ended June 30, compared with
the same period in 2008, according to an industry report.
To read the full story, please click here:
http://money.cnn.com/2009/08/12/real_estate/record_home_price_fall/index.htm?postversion=2009081211
San Francisco Chronicle
Don't claim tax credit if you don't qualify
The IRS has an urgent message for would-be home purchasers: Make the most of the $8,000 first-time
buyer tax credit before it disappears Dec. 1 - if you qualify.
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/08/09/REAL19396J.DTL&type=realestate
CNN Money
The incredible shrinking home
For the first time in almost 15 years, the size of new homes built in the United States is shrinking.
To read the full story, please click here:
http://money.cnn.com/2009/08/07/real_estate/shrinking_home/index.htm
What you should know about the market...
• According to Lawrence Berkeley National Laboratory, the typical American home has 40 products
continuously drawing power, and those products-when not in use-represent 10 percent of
residential energy consumption. To lower costs and reduce greenhouse-gas emissions, energy
experts say people should buy new appliances, specifically Energy Star-labeled models, and
unplug appliances when not in use.
• Homeowners trying to sell or refinance their properties will need to get a home appraisal. While
appraisers do not add extra value for a clean house, the appearance of the home nevertheless
does have some influence on the final number, according to a fellow at the American Society of
Appraisers. Consumers should prepare for a home evaluation the same way they would for an
open house. At a minimum, they should mow the yard, shine the windows, tidy the closets, and
pick up stray clutter from the floors. "The job ofthe appraiser is to look at the house through a
buyer's eyes," says Leslie Sellers, president-elect of the Appraisal Institute.
Larry has over 15 years of experience in Bank Repos and Short Sales and non foreclosed real estate, my clients include General Electric Mortgage, Home Savings, Associates Finance, Transamerica. Current clients include Bank of America, Ocwen Financial Corporation, Countrywide and Keystone Asset Management to name a few. Larry is President of Weichman Associates located in Costa Mesa California. He has sold real estate since 1976 and is a 3rd generation Real Estate Broker. Larry has closed escrow on over 1,000 properties; from townhomes to commercial buildings. Please be sure to visit us on the Internet at www.TeamWeichman.com, www.OCHomeTracker.com or www.OCRepoBroker.com or you can call me at 714-241-4532
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