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Missing Payments

by Re/Max Champions Chino

Don't panic if you missed the last payment.

Shared By: Leticia & Alberto Sotomayor
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California's jobless rate fell below 5% in October as employers added 31,700 jobs

by Re/Max Champions Chino

California's jobless rate below 5 percent.

California posted strong job gains in October, as the Golden State’s economic engine pushed the unemployment rate down to 4.9% from 5.1% a month earlier.
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U.S. unemployment rate falls to lowest level in nearly 17 years

by Re/Max Champions Chino

The unemployment rate dropped to its lowest point in nearly 17 years.

The unemployment rate dropped to its lowest point in nearly 17 years in October as the U.S. rebounds from hurricanes that stalled hiring a month…
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California jobless rate holds steady in September

by Re/Max Champions Chino

California's employment rate continues to see steady growth.

California’s jobless rate held steady at 5.1 percent in September, but a hefty 52,200 jobs were added to Golden State payrolls last month.
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Short Sales Rise, More Banks View it as a Better Option

by Leticia & Associates
  • Short Sales Rise, More Banks View it as a Better Option


    Banks are more willing to agree to a sale at a lower cost than a home owner’s mortgage balance in order to avoid having the property fall into foreclosure, which can be more costly for a lender. 

    In the fourth quarter of 2011, there were more than 88,000 short sales, a rise of 15 percent compared to a year prior. In all, short sales made up 10 percent of all home sales sold in the fourth quarter, according to recent data released by RealtyTrac.

    On the other hand, bank-owned homes dropped 12 percent year-over-year (to 116,000), making up 13 percent of all home sales during the fourth quarter.

    The average short sale in the fourth quarter sold for $184,221, according to RealtyTrac. The average foreclosure, on the other hand, sold for $149,686. 

    Banks are now more willing to do short sales and that trend will likely “show up in more local markets in 2012 as lenders recognize short sales as a better option for many of their non-performing loans," said RealtyTrac CEO Brandon Moore.

    Meanwhile, during the fourth quarter, 24 percent of homes sold — nearly one in four — were in some stage of foreclosure, either already bank-owned or already winding through the process, RealtyTrac reports. The number is slightly down compared to a year prior when foreclosures accounted for 26 percent of all home sales, RealtyTrac reports. 

    However, Moore says he expects foreclosure sales to rise this year, "particularly pre-foreclosure sales, as lenders start to more aggressively dispose of distressed assets held up by the mortgage servicing gridlock over the past 18 months.”

 

Freddie Mac's Average REO Sale Yields 94% Market Value

by Leticia & Associates

Freddie Mac says its REO homes sell for an average of 94 percent of market value.

According to a blog post by Tracy Hagen Mooney, SVP of single-family servicing and REO for the GSE, because Freddie Mac-owned homes “are well maintained and priced right for the local market,” most sell close to full estimated market value.

Freddie Mac sold more than 80,000 single-family REO homes in the first nine months of 2011, which the company says is a record. According to the McLean, Virginia-based GSE, it is selling more homes than it’s taking in through foreclosure.

“Although Freddie Mac’s inventory of foreclosed homes has been falling and represents only a small share of all [REO]

properties, we understand the negative impact these homes can have on neighborhoods and communities,” Hagen Mooney said. “That’s why our policies and programs are designed to maintain home values, reduce losses, and stabilize communities.”

Hagen Mooney points out that more than 70 percent of Freddie Mac’s REOs are sold to owner-occupants.

She says while the GSE has always been open to selling to investors, the company’s strategy is to limit the concentration of investor sales in any given area. She adds that Freddie Mac typically doesn’t consider any offers that require significant discount pricing.

Hagen Mooney also highlights the company’s “Good Neighbor” property preservation and maintenance best practices, which are designed to ensure that buyers purchase Freddie Mac homes in move-in condition, and that property values are maintained for neighborhoods.

The GSE’s “Good Neighbor” policies mandate that within three business days of a confirmed vacancy, each home is secured, preserved, and cleaned. The company’s contractors then continue to monitor and look after the home until it’s sold, including maintaining the landscaping.

Freddie Mac’s sales cycle for its REO homes is about 120 days, which the company attributes in part to its “top-performing broker network.

Freddie Mac Hits REO Selling Record

by Leticia & Associates

Freddie Mac Hits REO Selling Record

Freddie Mac has sold a record number of single-family REO homes in the first nine months of 2011, and the homes are selling for an average of 94 percent of market value, Tracey Mooney, Freddie Mac’s vice president of single-family servicing and real estate owned properties, said in a blog post

“Because our homes are well maintained and priced right for the local market and home buyers, most of our homes sell close to full estimated market value,” Mooney says.

Freddie Mac sold more than 80,000 REOs in the first nine months of 2011. 

“We are selling more homes than we are taking in through foreclosure,” Mooney wrote in the blog post. Mooney says Freddie’s REOs are selling in about 4 months or about 120 days, on average. 

Most of the REO sales are to owner-occupants. "While we have always been open to selling to investors, our strategy is to limit the concentration of investor sales in any given area," Mooney wrote. "In addition, we do not typically consider any offers that require significant discount pricing."

 

If you are Bank of America and you have 1000s of vacant homes that are literally rotting..becoming neighborhood hazards what do you do?

Tear them down.

If you don’t demo the unsold, unwanted properties the banks are on the hook for the property taxes, the property violations, crime, utilities…etc.

Expect more unsold properties to be demolished and the foreclosure rates continue to climb through 2012 into 2013.

Foreclosure Rescue Scams!

by Leticia & Associates

Beware of Foreclosure Rescue Scams

Foreclosure rescue and mortgage modification scams are a growing problem. Homeowners must protect themselves so they do not lose money—or their home.

Scammers make promises that they cannot keep, such as guarantees to “save” your home or lower your mortgage, oftentimes for a fee. Scammers may pretend that they have direct contact with your mortgage servicer when they do not.

The Federal government provides free resources to get you the help you need. Homeowners can call the Homeowner’s HOPE™ Hotline at 1-888-995-HOPE (4673) for information about the Making Home Affordable Program and to speak with a HUD-approved housing counselor

 Tips to Avoid Scams

 

 

1.  Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan. It is likely a foreclosure scam if you are being asked to pay money up front to negotiate a loan modification on your behalf if the company is not a law firm or a DRE approved Real Estate Broker.

 

2.  Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.

 

3. Banks do not send Realtors to your home to list your home for sale. You own the home you pick the realtor.  The bank is not allowed to give information about your situation to the public including telling you what agent to use. That agent is a scam.

 

4.  Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.

 

5.  It is likely a foreclosure scam if someone offering you a deal tells you that a real estate agent or title company is not required in the transaction. 

 

6.  Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

 

7.  It is likely a foreclosure scam if someone says they can cancel your mortgage all together and stop foreclosure due to an error in your loan documents. 

 

8.  Finally, it is likely a foreclosure scam if the buyer tells you he will buy your house for the sum of the mortgages you owe and an additional amount of money which he will pay in cash. 

 

9.  It is likely a foreclosure scam if you are told that the buyer will be taking over the payments of the house

 

10.  Never make a mortgage payment to anyone other than your mortgage company without their approval.

 

12. Agents or investors that want you to sell your home directly to an investor without putting the home on the MLS.  Lenders want to see the home marketed to the public to obtain the highest and best offer.

 

13. Banks do not send Realtors to your home to list your home for sale. You own the home you pick the realtor.  The bank is not allowed to give information about your situation to the public including telling you what agent to use. That agent is a scam.

 

 If you believe you have been the victim of mortgage fraud, contact the Attorney General’s office in your state of residence.

 

Home Affordable Foreclosure ALternatives Program

by Leticia & Associates

 

Treasury Department releases new Home Affordable Foreclosure Alternatives Program (HAFA)

HAFA

On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP).

HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure used to avoid foreclosure on a loan eligible for modification under the HAMP program.

 Loan Servicers participating in HAMP are also required to comply with HAFA.

HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.

HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. HAFA:

 

  • Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
  • Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
  • Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
  • Uses standard processes, documents, and timeframes/deadlines.
  • Provides financial incentives: $3,000 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).
  • Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

 

Displaying blog entries 1-10 of 13

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Photo of Leticia & Associates Real Estate
Leticia & Associates
Keller Williams Vision
15325 Fairfield Ranch Rd Ste 100
Chino Hills CA 91709-8834
(909) 731-8187
(909) 731-8187 cell/text

We can assist buyers, sellers, investors, first time home buyers, relocations, and is a certified short sale specialist in todays real estate market. We provide real estate services in Chino Chino Hills and the surrounding communities of Corona, Diamond Bar, Fontana, Ontario, Rancho Cucamonga, and Upland, Yorba Linda, Brea, La Habra. 

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Kim Hughes - Real Estate Virtual Assistant

CA BRE No. 01885348