Archive for the ‘Just Good Information’ Category

Facing Foreclosure – Recourse / Non-Recourse

Friday, March 26th, 2010

Real Estate Today Radio’s Notes:

In most cases, when you secure a mortgage on a home the collateral is … the home. Your lender may foreclose on the mortgaged property if certain conditions – specifically, non-payment of the mortgage loan. When foreclosures takes place and the funds recouped from sale of the mortgaged property are insufficient to cover the outstanding debt, the lender may not have recourse to the borrower after foreclosure. These types of loans are commonly referred to as “non-recourse loans”.

However, certain states those commonly known as “recourse states” give lenders the ability to seize other assets owned by the borrower to recoup what is owing. Recourse loans give the lender the option of taking legal action against the borrower. The scope of this legal action is dependent on the lending laws of the state – these laws usually cover the powers the lender has to enact what is commonly referred to as a deficiency judgment.

So what do you need to know if you are facing foreclosure? Learn your rights by seeking legal advice from a lawyer who understands the lending laws of the state you are in. While it is more than likely your current mortgage is a “non-recourse” loan, verify this with your lender and a legal professional.

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How Would a Realtor Help Me?

Wednesday, March 3rd, 2010

question How Would a Realtor Help Me? Ask a REALTOR®I’m looking to buy my first house. How would a REALTOR® help me versus shopping on my own?

answer How Would a Realtor Help Me? Ask a REALTOR® A good, knowledgeable Realtor could be an enormous asset during your home search. Unfortunately, some buyers still think that Realtors simply provide home listings, drive customers around, and then handle the paperwork. However, a buyer agent does so much more.

A good buyer agent will give you advice on cities/towns, particular neighborhoods, and council you on many other things to consider while conducting your home search, such as the benefits of a condominium vs. a single family, the actual cost of buying/owning multi-families, and ideas on increasing equity in your home and resale factors.

A buyer agent will also be able to make good referrals to additional real estate-related professionals, such as insurance agents, home inspectors, mortgage professionals and settlement agents. One thing I learned early in my career in buyer agency is that at the end of the day, I’m only as good as my worst referral, so we Realtors take these recommendations extremely seriously.

Once you are interested in a property, your buyer agent will do a market analysis, often referred to as a Comparable Market Analysis (or CMA), and will discuss with you his/her professional opinion as to market value, based on similar sold properties, the current local real estate market trends, inventory, and other factors. Lastly, the most crucial service a buyer agent can provide is as a skilled negotiator. In my opinion, this is what separates the best buyer agents from the pack and what will ultimately bring you the most value. A Realtor highly skilled at negotiating could assist you in purchasing the home that best meets your wants and needs for up to a few percentage points off the list price. This could end up saving you thousands of dollars.

Obviously you should choose a Realtor that also matches well with you. It’s always a good idea to talk with or interview a few Realtors to get a sense of who would be the best fit. Also Rick, please remember that not all agents are Realtors, so make sure the buyer agent you call is also a Realtor, meaning that they’re a member of the National Association of Realtors.

Article by David Kres.  He is a REALTOR® for Buyers Brokers Only LLC in NE Massachusetts/Southern NH.

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The Basics: Extended Home Buyer Tax Credit 2009/2010

Tuesday, March 2nd, 2010

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

  • Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
  • Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.  (MORE)

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Buffett Says U.S. Housing Will Recover by Next Year

Monday, March 1st, 2010

March 1 (Bloomberg) — Billionaire Warren Buffett said the U.S. residential real estate slump will end by about 2011, predicting that’s how long it will take demand for homes to catch up with the supply.

“Within a year or so, residential housing problems should largely be behind us,” Buffett wrote Feb. 27 in his annual letter to shareholders of his Berkshire Hathaway Inc. “Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.”

The worst housing decline since the Great Depression has left one in five U.S. mortgage holders owing more than their houses are worth. Record foreclosures last year flooded a real estate market already glutted with unsold property, causing new construction to fall to the lowest in at least 50 years. The fall in homebuilding is the only fix unless the U.S. decides to “blow up a lot of houses,” Buffett joked.  (MORE)

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Anatomy of a Government-Abetted Fraud: Why Indymac/OneWest Always Forecloses

Tuesday, February 16th, 2010

Several times per week, I get phone calls from attorneys. These calls all start out the same. “I am unable to get loan modifications done through a lender. What can I do?” The first question I ask is if the lender is Indymac/One West. Invariably, it is.

I also field the same type of calls from homeowners and from loan modification companies. Everyone is having the problem of Indymac not cooperating with regard to doing loan modifications. Furthermore, if I google the issue or check out loan modification forums, the same is true on the internet.

What is going on with Indymac/One West? Why aren’t they doing loan modifications? This article will try and bring together the known facts for a better understanding of the situation, and discuss what the Indymac situation means for foreclosures in general — and the government’s response to the crisis. First, to understand the situation today, one must have an understanding of the recent history of Indymac.

History

Indymac was a national bank in the U.S. It was insured by the FDIC. On July 11, 2008, Indymac failed and was taken over by the FDIC.

Indymac offered mortgage loans to homeowners. A large number of these loans were Option ARM mortgages using stated income programs. The loans were offered by Indymac retail, and also through Mortgage Bankers would fund the loans and then Indymac would buy them and reimburse the Mortgage Banker. Mortgage Brokers were also invited to the party to sell these loans.

During the height of the Housing Boom, Indymac gave these loans out like a homeowner gives out candy at Halloween. The loans were sold to homeowners by brokers who desired the large rebates that Indymac offered for the loans. The rebates were usually about three points. What is not commonly known is that when the Option ARM was sold to Wall Street, the lender would realize from four to six points, and the three point rebate to the broker was paid from these proceeds. So the lender “pocketed” three points themselves for each loan.

When the loans were sold to Wall Street, they were securitized through a Pooling and Servicing Agreement. This Agreement covered what could happen with the loans, and detailed how all parts of the loan process occurred.

Even though Indymac sold off most loans, they still held a large number of Option ARMs and other loans in their portfolio. As the Housing Crisis developed and deepened, the number of these loans going into default or being foreclosed upon increased dramatically. This reduced cash and reserves available to Indymac for operations.

In July, 2008, the FDIC came in and took over Indymac. The FDIC looked for someone to buy Indymac and after negotiations, sold Indymac to One West Bank.

OneWest Bank and its Sweetheart Deal

OneWest Bank was created on Mar 19, 2009 from the assets of Indymac Bank. It was created solely for the purpose of absorbing Indymac Bank. The principle owners of OneWest Bank include Michael Dell and George Soros. (George was a major supporter of Barack Obama and is also notorious for knocking the UK out of the Euro Exchange Rate Mechanism in 1992 by shorting the Pound).  (MORE)

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IndyMac, OneWest Bank, Taxpayers and the FDIC. Looking Into the Deal Between OneWest and The FDIC and Applying Math To The Resulting Shared Loss Agreement.

Tuesday, February 16th, 2010

First I’d like to say that I’m at the beginning of my research into this whole world of shared-loss agreements.  I am not an attorney.  I am a short sale specialist trying to be the best short sale specialist that I can be. But I have so many questions these days about what is going on behind the scenes.  Many things have stopped making sense in the world of short sales and foreclosures over the past few months. 

I have spent quite a bit of time looking on the FDIC website and pulling documents regarding this issue.  I’ve also read a lot of commentary and articles for or against shared-loss agreements.  The shared loss agreement that is the subject of this post is, by no means, an isolated agreement.  The shared-loss agreements also seem to have a pretty sizable group of fans.  But should they?

Recently I’ve been reading posts by other agents involved in short sales with Indymac where approvals were withheld that should have been no-brainers.  While I have had great luck with my Indymac / One West Bank short sales…it seems that increasingly others are not.  

I talked to one agent who had a sales contract at fair market value in to OneWest bank twelve days before the foreclosure sale.  OneWest told her they couldn’t act on anything they received less than 15 days before the foreclosure sale. That property went to foreclosure sale this week.   In the past I’ve had IndyMac/OneWest foreclosure sales delayed a day or two before the scheduled sale date.   (MORE)

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Facebook Pages vs Facebook Groups: What’s the Difference?

Monday, January 25th, 2010

 

“Should I create a group or launch a Page?” It’s the eternal question that gets asked as often as, “What is Twitter(Twitter)?” at introductory social media training classes. Ever since Facebook(Facebook) launched their Pages product as part of their larger advertising strategy (along with the ill-fated Beacon) in November 2007, there has been confusion over which to use. Because Groups and Pages have an overlapping feature set, even senior social media marketing consultants are sometimes stumped as to what to tell their clients. And Facebook continues to make changes to how Pages function, complicating the matter even further.

What is a Page on Facebook?

In their own words, “Facebook created Pages when we noticed that people were trying to connect with brands and famous artists in ways that didn’t quite work on Facebook…Not only can you connect with your favorite artists and businesses, but now you also can show your friends what you care about and recommend by adding Pages to your personal profile.”  (MORE)

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Twenty One Things Your Burglar Won’t Tell You

Monday, January 25th, 2010

 

  1. Of course I look familiar.  I was here just last week cleaning your carpets, painting your shutters, or delivering your new refrigerator.

 

  1. Hey, thanks for letting me use the bathroom when I was working in your yard last week.  While I was in there, I unlatched the back window to make my return a little easier.

 

  1. Love those flowers.  That tells me you have taste…and taste means there are nice things inside.  Those yard toys your kids leave out always make me wonder what type of gaming system they have.

 

  1. Yes, I really do look for newspapers piled up on the driveway.  And I might leave a pizza flyer in your front door to see how long it takes you to remove it.

 

  1. If it snows while you’re out of town, get a neighbor to create car and foot tracks into the house.  Virgin drifts in the driveway are a dead giveaway.

 

  1. If decorative glass is part of your front entrance, don’t let your alarm company install the control pad where I can see if it’s set.  That makes it too easy.

 

  1. A good security company alarms the window over the sink.  And the windows on the second floor, which often access the master bedroom-and your jewelry.  It’s not a bad idea to put motion detectors up there too.

 

  1. It’s raining, you’re fumbling with your umbrella, and you forget to lock your door- understandable.  But understand this: I don’t take a day off because of bad weather.

 

  1. I always knock first.  If you answer, I’ll ask for directions somewhere of offer to clean your gutters.  (Don’t take me up on it.)

 

  1. Do you really thing I won’t look in your sock drawer?  I always check dresser drawers, the bedside table, and the medicine cabinet.

 

  1. Helpful hint:  I almost never go into kids’ rooms.

 

  1. You’re right: I won’t have enough time to break into the safe where you keep your valuables.  But if it’s not bolted down, I’ll take it with me.

 

  1. A loud TV or radio can be a better deterrent than the best alarm system.  If you’re reluctant o leave your TV on while you’re out of town, you can buy a $35 device that works on a timer and simulates the flickering glow of a real television.

 

  1. Sometimes, I carry a clipboard.  Sometimes, I dress like a lawn guy and carry a rake.  I do my best to never, ever look like a crook.

 

  1. The two things I hate most: loud dogs and nosy neighbors.

 

  1. I’ll break a window to get in, even if it makes a little noise.  If your neighbor hears one loud sound, he’ll stop what he’s doing and wait to hear it again.  If he doesn’t hear it again, he’ll just go back to what he was doing.  It’s human nature.

 

  1. I’m not complaining, but why would you pay all that money for a fancy alarm system and leave your house without setting it?

 

  1. I love looking in your windows.  I’m looking for signs that you’re home, and for flat screen TVs or gaming systems I’d like.  I’ll drive or walk through your neighborhood at night, before you close the blinds, just to pick my targets.

 

  1. Avoid announcing your vacation plans on your Facebook page.  It’s easier than you think to look up your address.

 

  1. To you, leaving that window open just a crack during the day is a way to let in a little fresh air.  To me, it’s an invitation.

 

  1. If you don’t answer when I knock, I try the door.  Occasionally, I hit the jackpot and walk right in.

 

 

Sources:  Convicted burglars in North Carolina, Oregon, California, Kentucky, security consultant Chris McGoey, who runs crimedoctor.com and Richard T. Wright, a criminology professor at the University of Missouri-St. Louis, who interviewed 105 burglars for his book Burglars on the Job.

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