Just a quick note to clarify this past Friday's news about Bank of America halting foreclosures, effective today, in all 50 states, (obviously) including Califorina.
PLEASE NOTE- The foreclosure world has a jargon all its own. REMEMBER there are TWO meanings to the word "foreclosure."
The foreclosure, also known as the trustee sale, is when the bank sells your home, usually at the court steps in your city or area to a cash wielding investor, or "sells it back to itself" (translation: when an investor doesn't buy it).
However, the foreclosure process, also known as the default process, or "being in default," is when the bank is going through the necessary steps to foreclose on your home.
Bank of America is halting their FORECLOSURES in all 50 states. That does NOT mean they are halting their FORECLOSURE PROCESS. If this moratorium on foreclosing homes lasts for 30 days, then everyone will be one month further in to the foreclosure process, and thus one month closer to being foreclosed on.
Could it be there may be a drastic increase on foreclosures when this moratorium is over, because all these distressed mortgages had time to continue closer to an inevitable foreclosure when the homeowners thought they were safe?
Showing posts with label Why Short Sale NOW. Show all posts
Showing posts with label Why Short Sale NOW. Show all posts
Monday, October 11, 2010
Tuesday, October 5, 2010
GREAT NEWS For California Distressed Homeowners!
I received this great piece of news today in an e-mail from the California Association of Realtors:
Starting January 1, 2011, a seller's first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931. Governor Schwarzenegger vetoed Senate Bill 1178, our sponsored bill, which would have extended California's anti-deficiency protection to refinance loans.
Starting January 1, 2011, a seller's first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931. Governor Schwarzenegger vetoed Senate Bill 1178, our sponsored bill, which would have extended California's anti-deficiency protection to refinance loans.
THIS IS AWESOME FOR DISTRESSED HOMEOWNERS IN CALIFORNIA! IF YOU HAVE BEEN WAFFLING ON THE IDEA OF DOING A SHORT SALE, THIS SHOULD HELP YOU MAKE THE DECISION TO DO IT! CALL US TODAY FOR MORE INFORMATION!
Friday, August 6, 2010
WARNING! A MUST SEE VIDEO on The Foreclosure Epidemic!
This video will show exactly how big of a problem defaults and foreclosures are becoming in California. It is an EYE-OPENER! Click to watch.
Saturday, July 31, 2010
Tuesday, July 27, 2010
Home Ownership Falls To Lowest In Decade- Driven By Foreclosures
Here's a VERY good reason why NOW is the time to short sale. We are having a glut of homes in inventory. Just try to comprehend that for a moment- Interest rates are sitting at around 4% for a 30 year Conventional Loan, around 5% for FHA! Those are INSANE interest rates! Some Conventional Loans can get UNDER 4%! AND WE STILL HAVE TOO MUCH SUPPLY AND NOT ENOUGH DEMAND! Consumer confidence is low. People are scared to buy, banks are scared to loan. Result? Home values will drop even more.
Short sale. Get out of the mess NOW. Count down the months until you can buy again. Buy when values are still low, before you would have been able to due to foreclosure. Then sit on equity. Slam dunk.
Bloomberg article here.
First three paragraphs:
About 18.9 million homes in the U.S. stood empty during the second quarter as surging foreclosures helped push ownership to the lowest level in a decade.
The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.6 million in the year-earlier quarter, the U.S. Census Bureau said in a report today. The ownership rate, meaning households that own their own residence, was 66.9 percent, the lowest since 1999.
Lenders are accelerating foreclosures as borrowers fall behind in mortgage payments after the worst housing crash since the Great Depression. A record 269,962 U.S. homes were seized in the second quarter, according to RealtyTrac Inc. Foreclosures probably will top 1 million this year, the Irvine, California- based data company said in a July 15 report.
Short sale. Get out of the mess NOW. Count down the months until you can buy again. Buy when values are still low, before you would have been able to due to foreclosure. Then sit on equity. Slam dunk.
Bloomberg article here.
First three paragraphs:
About 18.9 million homes in the U.S. stood empty during the second quarter as surging foreclosures helped push ownership to the lowest level in a decade.
The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.6 million in the year-earlier quarter, the U.S. Census Bureau said in a report today. The ownership rate, meaning households that own their own residence, was 66.9 percent, the lowest since 1999.
Lenders are accelerating foreclosures as borrowers fall behind in mortgage payments after the worst housing crash since the Great Depression. A record 269,962 U.S. homes were seized in the second quarter, according to RealtyTrac Inc. Foreclosures probably will top 1 million this year, the Irvine, California- based data company said in a July 15 report.
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