New Classified Ad

If You Are Not Yet Late On Home Mortgage Payments, Starting Loan Modification Will HURT Your Credit

The beginning phase of a loan modification is a "trial loan modification" which will hurt your credit. Most people who apply for a loan modification are already late on their payments, so the effects are barely seen. However, if you apply for a loan modification and have not yet missed a payment, the process will hurt your credit score!

http://money.cnn.com/2009/12/28/news/economy/loan_modifications_credit_history/index.htm

Short Sale Testimony

"Mike Towers took care of selling our home as a short sale and we are grateful for it. We worked with our bank for many months trying to negotiate a loan modification, but the bank would not offer us a plan that was workable in our situation. Even though the bank originally refused the short sale and asked for more money than the home was worth, Mike negotiated on our behalf, got the bank to accept the short sale at fair market value, and made sure we did not have to contribute funds to close the deal. Now, we can focus on life without the burden of our upside-down mortgage. Thank you very much, Mike!"

-Mr. & Mrs. S.

The Biggest Benefit of Doing A Short Sale

According to procedures from Fannie Mae (in regards to conventional loans) and the Federal Housing Administration (in regards to first-time home buyers assistance loans - "FHA loans"), a homeowner who is foreclosed on by their lender may have to wait 5-7 years before they will be allowed to qualify for another home loan.

However, if that same homeowner sells their home as a short sale (called a pre-foreclosure), the may qualify in as little as 2-3 years. That is a chance to own a home again 3-4 years SOONER than allowing the home to go to foreclosure.

In this market, it is very likely that home values will still be low in the next 2-3 years. There are many foreclosures that banks still have to sell, and many people every day are still going into default due to alarmingly lost value in their homes (a large percentage of homes today are "upside-down," meaning the homeowners owe more money on their mortgage than the home is worth). Because of that, someone who short sells their home now, can use the money they are saving (paying only rent instead of a mortgage) to pay off debt and save for their next home purchase. Then, they would be able to purchase a home sooner, and probably for much lower of a cost than if they were foreclosed on, waited 5-7 years, and purchased a home when home values had more time to go even higher.

For more information, or to ask questions about this tremendous benefit to doing a short sale, please reply to this post, or give me a call at 661-616-3601.

Short Sale Testimony

"Mike Towers was very efficient handling our short sale. He priced our property aggressively to get an offer quickly, so we wouldn't have to worry about weeks and weeks of showings. We were faced with a trustee's sale, and Mike negotiated on our behalf to postpone the foreclosure so our short sale could be reviewed and approved. Mike's experience with short sales paid off because we had bank approval very quickly Thank you very much Mike! This was a very stress free experience."

-Mr. & Mrs. B.

December 12- Short Sale Informational Seminar!

Announcing our Short Sale Informational Seminar! Come and learn the benefits and options with doing a short sale for your home. Ask any questions you may have to decide if this is the best option for you!

Topics that will be covered include:

-The freedom that comes from doing a short sale

-Why 54% of Loan Modifications DO NOT WORK

-What to watch out for- Loan Modification SCAM ARTISTS

-How a short sale works for YOUR BENEFIT

-Why it is important to have the

RIGHT agent doing your short sale

-Why prices are NOT getting better

anytime soon (and probably for years)

-How you can short sale your home, in as little time as possible, as easily as possible, for FREE

Our next Short Sale Informational Seminar will be:

Saturday, December 12th, from 10am - Noon

Call 661-616-3601 to reserve your seat today!

Market Review: October 2009

As of November, 2009, there are 2,646 residential properties for sale on the market in Kern County.
In October, 771 homes sold.
That is a 3 1/2 month supply of homes if no other homes come on the market.
During October 1126 homes were listed.

Of the homes currently for sale...

108 of these homes are priced above $500,000.
During October 8 of these homes sold.
That’s a 13 1/2 month supply in this price range if no others come on the market.
During October 24 additional homes in this price range were listed.

343 of these homes are priced $250,001-$500,000.
During October 67 of these homes sold.
That’s a 5 month supply in this price range if no others come on the market.
During October 114 additional homes in this price range were listed.

770 of these homes are priced $150,001-$250,000.
During October 215 of these homes sold.
That’s a 3 1/2 month supply in this price range if no others come on the market.
During October 311 additional homes in this price range were listed.

1426 of these homes are priced under $150,000.
During October 484 of these homes sold.
That’s a 3 month supply in this price range if no others come on the market.
During October 676 additional homes in this price range were listed.

Number of homes sold in Kern County per month:
January – 671
February – 682
March – 845
April – 884
May – 665
June – 828
July – 508
August – 459
September - 487
October - 771

Note: The "month supply" means the number of months it would take to sell the current number of homes at the current rate, with no change in factors. The month supply for EVERY category increased since last checked (for June), meaning it now takes longer to get through our inventory of homes than it did in June. We also now have slightly more homes currently on the market than since last checked (early July).

Coldwell Banker Preferred Now Has A Youtube Channel!

The real estate company I work for is at it again. This new endeavor only increases the success of my clients in getting their homes sold!

http://www.youtube.com/cbpreferred

Short Sale Testimony

"Mike sold our home for us as we needed to do a short sale. His system for short sales helped us to get a buyer quickly. Thanks to Mike, the bank approved the sale of our home, and he even negotiated on our behalf when the bank asked us to pay out of pocket to accept the deal, making sure we didn't have to pay anything to the bank! We are grateful for Mike's hard work."

-Mr. & Mrs. B.

Today's Mortgage Rates

15 year fixed - 4.375%
30 year fixed - 4.875%
30 year 5/1 ARM - 3.75%
30 year 7/1 ARM - 4.125%
FHA - 4.875%
VA - 5.0%
Cal PERS - 5.375%

All of these rates assume loan amounts $417,000 or less ($368,750 for FHA in Kern County), 720 credit score (640 on FHA), 20% down payment (3 1/2% for FHA) and a 15 day lock on owner occupied properties.

Sniff a Scam - Is the guy doing your Loan Mod a Scam Artist?

If you want to do a loan modification, I strongly recommend going straight through the bank itself. Not only can you do it yourself, it is also free.

If you must use a third party to do it for you, here is what to watch out for:

1. Third parties that want to charge you an up-front, non-refundable fee to do a loan modification for you. The usual price is $3000 or $3500. Not only is this poor practice, it borders on mortgage fraud (article here).

2. Third parties that encourage you to intentionally MISS a payment. Some banks previously wouldn't work a loan modification with you unless you were already in a form of default (i.e.- a missed payment). However that is no longer the case. Loan modifications and short sales are available to people who have NEVER missed a payment.

3. Third parties that are IMPOSSIBLE to get a hold of after you pay them. Or, when they do call you back, they always tell you "I'm working on it. " You can always call the bank and ask them what the progress is. Customer service reps will type in notes for EVERY single call. The third party should keep a call log of the date and time of his calls, who he spoke to, and what was discussed.

Make sure the third party clearly indicates to you if your modification is an actual loan modification or simply a forebearance. A forebearance is nothing more than a partial payment that keeps the default status in "limbo." As soon as you miss one of these payments, the default process continues where it left off.

Good luck. For more information on the benefits of short sales, please call us at 661-616-3601.

54% of Loan Modifications DON'T Work

From the article:

"The latest data from the Office of the Comptroller of the Currency (OCC) shows that over 50% of homeowners who had their loans previously modified in order to avoid foreclosure have re-defaulted. This seems like an awfully high failure rate."

Full article here.

50% of All Homeowners "Upside Down"

This is why doing a short sale right now is so important! It will probably be YEARS before home values go back up!

From the article:

"More than 50 percent of the mortgages in Kern County are now reportedly "upside down," with the house worth less than the loan."

Full article here.

Why Now Is The Time To Sell Your Home

Please listen to me. This is not a gimmick. This is not a sales pitch. I am not messing with you. If you are thinking about selling your home within the next three years, and you want as much money as possible out of the sale of your home, you need to sell your home NOW.
Bank owned foreclosures are out of control. Drive through your neighborhood. Ever wonder why you never see your neighbors at “that” house, and you are worried that the grass is growing high or turning brown, or there is some weird note in the window? Chances are- that home is another foreclosure. I was shocked when we had 1000 new defaults on home loans in one month late last year. It’s not getting any better: January, February and March each averaged 1,600 NEW defaults per month! 80% of homes that enter default turn into bank owned foreclosures within a year. Do the math.
There was a moratorium- a government imposed stoppage, of new foreclosures coming on the market. Because of that, selling inventory of homes is down (approximately 1500 when it used to be over 3000). But this moratorium ended September 15. The banks are now allowed to put their foreclosures on the market for sale. Do you think they are going to wait, losing time as other banks put their homes on the market? Unlikely.
A brash of many foreclosures coming on the market will cause home values to go down even more than they are now. You think the home values NOW are bad, wait until more foreclosures come on the market! Why? Because banks don’t care about other homeowners, like yourself, in your neighborhood. They only care about selling their foreclosed homes as quickly as possible to limit their losses. If that means pricing their homes far below the rest of the neighborhood, they will do it.
With more foreclosures for sale it means more competition for banks to sell their assets before other banks do. This means cutting their list prices even more to beat other banks. If a home buyer buys another bank’s foreclosure before theirs, they lose out, and don’t want that to happen.
So if you are considering selling your home, I strongly recommend you selling it NOW. At the current rate of defaults and foreclosures, it doesn’t look like the foreclosure market is going to end anytime soon. To receive the most out of the sale of your home, contact our office TODAY!

661-616-3601

Today's Interest Rates

15 year fixed - 4.5%
30 year fixed - 5.0%
30 year 5/1 ARM - 4.0%
30 year 7/1 ARM - 4.5%
FHA - 5.0%
VA - 5.0%
Cal PERS - 5.375%

All of these rates assume loan amounts $417,000 or less ($368,750 for FHA in Kern County), 720 credit score (640 on FHA), 20% down payment (3 1/2% for FHA) and a 15 day lock on owner occupied properties.

5 Reasons Your Home Did Not Sell

Contrary to what the news is telling you, homes are selling everyday. When a home expires from its listing contract WITHOUT selling, or the “For Sale By Owner” sign has been flopping in the wind for several weeks, here are the five top reasons they did not sell.
Recorded Info!
Call 24/7!
1-800-918-0927 x. 105

Search For Homes For Sale In Kern County

You can now search for all available properties for sale in Bakersfield and all of Kern County, California, at http://www.kerncountyhomesearch.com/. Using this easy, simple to use website, you can locate properties for sale based upon your desired number of bedrooms, bathrooms, house size, lot size, area, amenities and more! With http://www.kerncountyhomesearch.com/, you can even have e-mails sent to you- keeping you up to date on all properties fitting your desired criteria, the day they come out, so you will know of properties for sale, sometimes before even the for sale sign is up! With high-in-demand foreclosures coming on the market daily, this feature is a must have in finding the best deal before all of the competition know the property you want is for sale! Click on http://www.kerncountyhomesearch.com/ today and see how easy it is to use!

Short Sale Consultations

Today's Interest Rates

15 year fixed - 4.75%
30 year fixed - 5.25%
30 year 3/1 ARM - 4.5%
30 year 5/1 ARM - 4.25%
FHA - 5.375%
VA - 5.375%
Cal PERS - 5.75%

All of these rates assume loan amounts $417,000 or less ($368,750 for FHA), 720 credit score (620 on FHA), 20% down payment (3 1/2% for FHA) and a 15 day lock on owner occupied properties.

Market Review: June 2009

Activity for June, 2009

As of July, 2009, there are 2,564 residential properties for sale on the market in Kern County.
In May, 828 homes sold.
That is a 3 1/2 month supply of homes if no other homes come on the market.
During May 1164 homes were listed.

Of the homes currently for sale...

91 of these homes are priced above $500,000.
During June 8 of these homes sold.
That’s a 11 month supply in this price range if no others come on the market.
During June 19 additional homes in this price range were listed.

288 of these homes are priced $250,001-$500,000.
During June 89 of these homes sold.
That’s a 4 month supply in this price range if no others come on the market.
During June 127 additional homes in this price range were listed.

511 of these homes are priced $150,001-$250,000.
During June 211 of these homes sold.
That’s a 2 1/2 month supply in this price range if no others come on the market.
During June 295 additional homes in this price range were listed.

929 of these homes are priced under $150,000.
During June 520 of these homes sold.
That’s a 1 1/2 month supply in this price range if no others come on the market.
During June 723 additional homes in this price range were listed.

Number of homes sold in Kern County per month:
January - 671 February - 682 March - 845 April - 884
May - 665 June - 828
Number of homes per month sold is up from May to June. Number of listings coming on the market is also increasing. The month supply of homes for all categories have all DECREASED (supply is selling quicker). This means we currently, believe it or not, HAVE MORE DEMAND THAN SUPPLY. The banks are in another moratorium from listing foreclosures. Even though the number of foreclosed listings is gradually increasing compared to the past few weeks, right now is the best time, for the next few years, to sell your home for the most money possible. We actually need MORE listings to meet demand.
Y O U N E E D T O L I S T Y O U R H O M E T O D A Y !

Number of Bank Owned Foreclosure Listings Is Increasing

Banks are slowly but surely being able to increase the number of foreclosed properties they have for sale. This will quickly counter-act the current problem of many buyers and not enough inventory to fill their demand. However, this may also lead into increased interest rates as well, demanding upon the market. That is why it is IMPORTANT and VITAL to be sure you are completely pre-qualified and ready to go to purchase a home for this market!

Contact Marisa Cornejo today at 661-835-5331 to be all prepared to submit offers on homes for sale!

New California Foreclosure Moratorium Goes Into Effect TODAY

From Sacramento Bee:

After a severe economic storm of more than 365,000 California foreclosures since early 2007, the state's long-awaited 90-day foreclosure moratorium law goes into effect Monday.

Moratorium to force lending insitutions to have federally approved loan modification / short sale programs in place and being utilized:

Backers say it will make lenders try harder to keep borrowers in homes. Starting Monday, loan servicers must prove to the state they have comprehensive loan modification programs in place – or be denied rights to foreclose on their own schedules.
"You have voluntary programs that they don't have to do," said Assemblyman Ted Lieu, a Torrance Democrat who was the author of the bill. "This creates an enforcement mechanism to force them to do it. The hammer is the 90-day foreclosure moratorium, which they all hate."

Full article here.

BRAND NEW: Sign up for Kern County Home Search E-Mail Report!

To provide better service to our clients, we have begun the "Kern County Home Search E-Mail Report." This free e-mail report will be sent to you, at no obligation, to help you fell better informed about the current real estate market in Bakersfield and surrounding Kern County, CA. With topics like: Overview, Loans & Interest Rates, Buyer's Options, Today's Insider Secret and more, this short but full e-mail report is just what you need to set yourself apart from other buyers who are frustrated in this market because their offers are not being accepted. With our discounts (up to $20,000!), experience, qualified lender, and home-buying systems and procedures, you will quickly realize how benefiting it is to use our services! For a quick and free e-mail report, feel free to call us, or you can email me at:

miketowers@cbbakersfield.com

I look forward to your real estate success!

California Homebuyer's Downpayment Assistance Program Is Back

The CHDAP provides a deferred-payment junior loan – up to 3% of the purchase price, or appraised value, whichever is less – to qualified borrowers to be used for their down payment or closing costs. This junior loan may be combined with a CalHFA or non-CalHFA first mortgage loan.

For more information, contact Marisa at 835-5331 or Mike at 706-6922 today!

Market Review: May 2009

As of June 1, 2009, there are 2,401 residential properties for sale on the market in Kern County.
In May, 665 homes sold. That is a 3 1/2 month supply of homes if no other homes come on the market. During May 1038 homes were listed.

102 of these homes are priced above $500,000. During May 6 of these homes sold. That’s a 17 month supply in this price range if no others come on the market. During May 27 additional homes in this price range were listed.

371 of these homes are priced $250,001-$500,000. During May 46 of these homes sold. That’s a 8 month supply in this price range if no others come on the market. During May 143 additional homes in this price range were listed.

704 of these homes are priced $150,001-$250,000. During May 187 of these homes sold. That’s a 3 1/2 month supply in this price range if no others come on the market. During May 338 additional homes in this price range were listed.

1224 of these homes are priced under $150,000. During May 426 of these homes sold. That’s a 3 month supply in this price range if no others come on the market. During May 530 additional homes in this price range were listed.

Number of homes sold in Kern County per month: January - 671 February - 682 March - 845 April - 884 May - 665

Number of sales are down, as well as number of listings (2700+ in mid-April down to 2401 today). The number of foreclosures on the market have drastically been reduced. However, the foreclosure moratorium is now over and bank owned foreclosures will soon flood the market again. Now is the RIGHT time to list your home for sale to receive the most value, before home values are further lowered by the competitive banks. Speculators are estimating bank owned foreclosures for sale will last for awhile, possible through 2012. Bakersfield home values have dropped to below 2002 levels, with some real estate experts estimating we will soon drop before 1999 levels. Now is NOT the time to wait, now is the time to list with an aggressive agent to get your home sold, for the best value, in the quickest time, with the least amount of hassle!