6 of Top 12 Metro Areas in America with Most Foreclosures are CALIFORNIA CITIES! New Video!

New Video Series - Frequently Asked Questions About Short Sales Answered

I created 9 videos asnwering the most often asked questions regarding short sales. Each one has a link to the remaining questions. They were created to help home owners decide if a short sale is best for them.

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.

I Can Short Sale Your Home in ANY City in California!

It doesn't matter if your home is in Los Angeles or Eureka, from Sacramento to San Francisco, from Palo Alto to Bakersfield. I can get your home short sale approved! The benefits for doing a short sale are, in my opinion, OVERWHELMINGLY in your favor. I would love to go over them with you! Please call me today and let's see what we can do for you!

Mike Towers

661-706-6922 (office)

RE/MAX Magic

Fastest Growing RE/Max Office in the World!

Homes and Estates Magazine

http://www.handemagazine.com/

Bakersfield 5th Worst Residential Real Estate Market In Country

The Bakersfield area was the fifth worst residential real estate market in the nation in January based on mortgage delinquency rates, foreclosures and other signs of a deeply troubled housing market.
That's according to the latest monthly report from First American CoreLogic, a housing data firm based in Santa Ana.

Full article here.

Bakersfield Californian - www.bakersfield.com

Bakersfield 8th in the Nation in Foreclosures

According to an article from bakersfield.com, RealtyTrac reported last month that Bakersfield ranks 8th in the Nation in number of foreclosures compared to number of total homes (1 out of every 118 houses is a foreclosure).

The foreclosure problem is NOT going away. This is why it is so important to consider a short sale! Give us a call today!

Full article:

Bakersfield ranks No. 8 for the top foreclosure rates nationally last month, according to RealtyTrac, an Irvine-based real estate data firm, figures released today show.
Six California cities registered foreclosure rates among the top 10: Modesto at No. 3 (one in every 107 housing units); Stockton at No. 4 (one in 107); Riverside-San Bernardino-Ontario at No. 5 (one in 109); Merced at No. 6 (one in 109); Vallejo-Fairfield at No. 7 (one in 112); and Bakersfield at No. 8 (one in 118).
RealtyTrac's U.S. Foreclosure Market Report examines foreclosure filings including default notices, scheduled auctions and bank repossessions.
There were problems with 315,716 U.S. properties last month, a decrease of nearly 10 percent from December but still 15 percent above the level reported in January 2009. The report also showed one in every 409 U.S. housing units received a foreclosure filing in January.

Do You Have A Question?

**NEW FEATURE**

Do you have a question about short sales, loan modifications, or real estate in general? Submit your question and we will work on answering your question in our NEW video blog FAQ feature. Look for questions answered soon!

You can submit your question by posting a comment, or e-mailing us at:

miketowers@cbbakersfield.com

IndyMac, Loan Modifications and the FDIC

If you, or someone you know, is attempting to get a loan modification through Indymac Bank, PREPARE TO BE VERY TICKED OFF!

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.
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