What is happening to Foreclosures???
October 15, 2010 by Lisa Locke · Leave a Comment
No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide.
The situation is changing daily, But here is what CAR knows as of 10/15/2010:
- In late September and early October some lenders and servicers began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes.
- So far, only Bank of America has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order. Foreclosures in the other 23 states are processed through the court system.
- Non-judicial foreclosures in California, however, do have legal requirements that lenders must follow. For example, California law requires that lenders for certain mortgage loans made between Jan. 1, 2003, and Dec. 31, 2007, attempt to make contact with borrowers to discuss options for avoiding foreclosure at least 30 days before filing a notice of default. Lenders also must sign a declaration in the notice of default stating that they tried to contact the borrower, made contact with the borrower, or fall within an exception (such as a bankruptcy filing).
- The lenders and servicers that have placed their foreclosure moratorium on properties in the 23 states where courts are involved in the foreclosure process include: Goldman Sachs Group Inc’s Litton Loan Servicing, Ally Financial Inc.’s GMAC Mortgage unit, JPMorgan Chase, and PNC Financial.
- These lenders/servicers have only temporarily halted their foreclosures while they review their foreclosure process. This is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.
- This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government.
- Some members have begun to report the immediate impact of this moratorium on transactions that involve foreclosed properties. Delays in escrow and the removal of listed foreclosures are temporary results of this moratorium.
- The immediate impact on the market will be the slowing of home sales, which could put upward pressure on home prices in the short term. The long-term effect on the market is uncertain at this point as it depends how long the moratorium remains in place.
- Assuming the moratorium is lifted in the next month, the flow of REOs to the market should resume, but the uncertainty created by the moratorium may cause hesitation on the part of buyers.
- Federal agencies, including the Office of the Comptroller of the Currency, the Federal Housing Administration, and the conservator of Fannie Mae and Freddie Mac, have asked lenders and servicers to review their foreclosure processes. This review would apply to all states including those like California where the vast majority of foreclosures are non-judicial.
- The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete
Information provided by: Steve Goddard 2010 President
CALIFORNIA ASSOCIATION OF REALTORS®
Should I file a property tax assessment appeal?
August 19, 2010 by Lisa Locke · Leave a Comment
I want to appeal my property taxes. What do I need?
Your property taxes are based on the “Assessor’s enrolled value of your property”. If similar sized homes in your area have recently sold for less than the “Assessor’s enrolled value” of your home, you may have a valid assessment appeal. You can locate the assessed value of your home from your most recent tax bill or online at the Orange County Tax Assessors website. (http://tax.ocgov.com/tcweb/search_page.asp)
Where can I get information about filing a property assessment appeal?
Visit the Clerk of the Board’s website at www.oc.ca.gov/cob/ and select Property Assessment to get information on how to file an appeal and prepare for your hearing. The forms, instructions and access to the online filing system provide a step-by-step guide that will help in completing your appeal application.
What do I need in order to challenge my assessment?
Contact me and I will provide you with comparable sales as close as possible to your property for the “lien date” timeframe. The lien date is January 1 of the year you are appealing. Your evidence (comparable sales) cannot be sales that occur more recently than 90 days after the lien date (January 1) but can go back in time. Evidence that is closest to the January 1 lien date will be the most credible evidence.
What are the deadlines for filing assessment appeals?
Type of Assessment and Filing Deadlines are:
• Regular Appeals: July 2 to September 15 of each year at 5:00 p.m.*
• Supplemental/Roll Correction Appeals: 60 Days from date of notice*
• Escape Appeals: 60 Days from date of notice*
• Calamity Appeals: 6 Months from date of calamity reassessment notice*
Still have questions, need comparables and forms?
No problem, give me a call and I can help you through the process.
HAFA is Officially Underway
April 6, 2010 by Lisa Locke · Leave a Comment
By: Brittany Dunn at: www.dsnews.com
The deadline for servicer implementation of the administration’s Home Affordable Foreclosure Alternatives (HAFA) program has arrived.
HAFA, which is part of the Home Affordable Modification Program (HAMP), aims to help homeowners who are unable to qualify for a loan modification under HAMP by providing them with the option to pursue a short sale or deed-in-lieu. Under the program, financial incentives are provided to servicers and borrowers who utilize these foreclosure alternatives.
As DSNews.com reported, the Treasury Department released HAFA guidelines on November 30, 2009, but participating servicers were not required to implement the program until April 5, 2010. That deadline is now here, but the National Association of Realtors said its members are already hearing that the employees of many servicers have not yet heard about the program, making it clear that many servicers will not “hit the ground running.”
However, many servicers are ready, and the program is expected to be a success.
According to the program guidelines, once a borrower is determined to be ineligible for a HAMP modification, the servicer must consider that borrower for HAFA within 30 days. Every potential eligible borrower must be considered for the program before the borrower’s loan is referred to foreclosure or the servicer allows a pending foreclosure sale to be conducted.
If the servicer determines that the borrower is eligible, the short sale or deed-in-lieu process will begin. Qualified borrowers will be given pre-approved short sale terms before the property is listed, and once an offer is made, mortgage servicers will have 10 days to approve or reject the sale.
To encourage HAFA participation, the Treasury Department raised financial incentives under the program in late March. Borrowers are now eligible for $3,000 in relocation assistance, and servicers will receive $1,500 to cover administrative and processing costs for a short sale or deed-in-lieu completed under the program.
In addition, investors will be paid as much as $2,000 for allowing a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders. This reimbursement will be earned on a one-for-three matching basis, and to receive the incentive, subordinate lien holders must release their liens and waive all future claims against the borrower.
According to Treasury, the foreclosure alternative options offered under HAFA reduce the need for potentially lengthy and expensive foreclosure proceedings and also help preserve the condition and value of the property by minimizing the time a property is vacant and subject to vandalism and deterioration. In addition, Treasury said short sales and deeds-in-lieu generally provide a substantially better outcome that a foreclosure sale for borrowers, investors, and communities.
Gov. Schwarzenegger Extends $10K Homebuyer Tax Credit in California
April 1, 2010 by Lisa Locke · Leave a Comment
By: Brittany Dunn at: www.dsnews.com
On Thursday, California Gov. Arnold Schwarzenegger signed AB 183, which will provide a tax credit of up to $10,000 to Californians who are buying their first home or purchasing a newly-built home.
“I have been up and down the state pushing this important housing bill that will get people off the fence and into homes while creating jobs and stimulating our economy – and today I am proud to take action and put it into law,” Gov. Schwarzenegger said.
The bill, authored by assembly member Anna Caballero (D-Salinas) and Sen. Roy Ashbum (R-Bakersfield), gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers—$100 million for first-time buyers of existing homes and another $100 million for buyers of new, unoccupied homes.
Available for homes purchased between May 1, 2010 and December 31, 2010, the tax credit will be equal to 5 percent of the purchase price, up to $10,000. It will be given on a first-come, first-served basis and will be applied in equal amounts over a period of three taxable years. To qualify, the buyer must not be a dependent and must purchase a home that does not belong to a relative.
“The tax credit will help push prospective buyers off the fence, clear out inventory, and jump-start the homebuilding industry, which will help create jobs and reinvigorate the state’s economy,” said Liz Snow, president and CEO of the California Building Industry Association.
Gov. Schwarzenegger fought hard to extend and expand the homebuyer tax credit after its successful run in 2009. That $100 million tax credit was approved in February 2009 and ran out in just four months after 10,659 Californians claimed the credit.
This legislation is part of the larger California jobs initiative that Gov. Schwarzenegger proposed in his State of the State address in January to create jobs and stimulate the economy. The newly-extended homebuyer tax credit is the second piece of this initiative to be approved by the legislature.
“Creating jobs is my number one priority, and I am glad that I have been able to sign two job-creating bills in two days,” Gov. Schwarzenegger said. “I applaud the legislature for their great work and encourage them to keep it up and pass the remaining job-creating elements of my California jobs initiative.”
On the Fence about Buying a New Home?
February 24, 2010 by Lisa Locke · Leave a Comment
The wait is over! We can help you find the perfect home at a bargain price today. Oh, and by the way, mortgage interest rates have never been more competitive.
November 6, 2009 – President Obama extends the $8,000 tax credit to first-time homebuyers and includes up to $6,500 for current homeowners.
Details include:
* $8,000 tax credit extended to April 30, 2010 for first-time homebuyers.
* New $6,500 tax credit grant available to current home owners purchasing a home between now and April 30, 2010.
* Income limits raised allowing single buyers with incomes up to $125,000 and married couples with up to $225,000 to receive the maximum tax credit.
This first time home buyer credit is a federal tax credit subject to qualifications, conditions and restrictions. The credit is only available for a limited time. General information is available at www.FederalHousingTaxCredit.com.
Don’t Delay in Finding Your Next Home. Start Searching for Your Next Home Now.
