Fannie Mae requiring over market value to approve short sales?

20 Mar

If your loan is owned by Fannie Mae, be prepared that you may get a counter offer 5 – 10% higher than the market value.  The reason is that if Fannie Mae forecloses on a home, they can resale it as a “Homepath” sale. Homepath homes are properties owned by Fannie Mae, which qualify for a Homepath loan. A Homepath loan does NOT require an appraisal. Therefore, Fannie Mae is now in a unique position to sell houses over market value because they can offer loans without an appraisal. Be sure to find out who your loan is owned by and talk with expert short sale negotiators before considering a short sale.

Nancy Moeller, CPA, Real Estate Broker

Seven Gables Real Estate

License #01727426

http://www.TheMoellerTeam.com

Distressed Homeowners: http://www.ShortSaleorWait.com

Direct: 714 276-7006

Fax: 714 917-2293

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New Listing- Upgraded Home

24 Jan

Open House this Saturday, Jan 26th from 11-4pm.

Come Join us at 710 Juanita St., La Habra

http://www.710juanitastreet.com/  IMG_0686

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Update on Mortgage Debt Relief Act

10 Jan

In an effort to conform state law to a federal law passed last week that extended mortgage debt forgiveness, the California Association of Realtors (C.A.R.) is sponsoring Senate Bill 30, so that California homeowners on the brink of foreclosure can get much-needed debt relief.

SB 30 (Calderon, D-Montebello) will for one more year exempt the taxation of mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale or loan modification (including any principal reduction).

“We applaud Senator Ron Calderon for acting so quickly on an issue that’s critical to the housing market,” said C.A.R. President Don Faught.  “We urge the California Legislature to also act quickly and pass a measure that will give hope to tens of thousands of California homeowners and provide the vital financial relief they need in order to make important personal financial decisions.”

The previous California exemption lapsed at the end of 2012, so forgiven mortgage debt is considered taxable state income for the time being.  Upon passage of SB 30, the measure will be effective retroactive to Jan. 1, 2013.

Please call us to discuss your specific situation.

Nancy Moeller, CPA, Real Estate Broker

Seven Gables Real Estate

License #01727426

http://www.TheMoellerTeam.com

Direct: 714 276-7006

Fax: 714 917-2293

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New California Laws for Landlords

9 Jan

Here are just a few new laws for landlord which are effective January 1st:

  1. Landlord Must      Disclose Notice of Default to Prospective Tenants:  Every      landlord who offers a (one to four unit) residential property for rent      must disclose (in writing) the receipt of a notice of default to any      prospective tenant. This disclosure must be made before executing a lease      agreement.
  2. Tenant Entitled      to a 90-Day Notice to Terminate After Foreclosure:  A      month-to-month tenant in possession of a rental housing unit at the time      the property is foreclosed must be given a 90-day written notice to      terminate. For a fixed-term residential lease, the tenant can generally      remain until the end of the lease term and all rights and obligations under      the lease shall survive foreclosure, including the tenant’s obligation to      pay rent.
  3. Protecting Pets      from Being Declawed or Devocalized: A landlord or      other person or corporation that occupies, owns, manages, or provides      services in connection with any real property that allows an animal on the      premises, cannot require that the animal be declawed or devocalized. The      landlord or other person also can’t refuse to allow occupancy based on      someone’s refusal to declaw or devocalize any animal.
  4. Restrictions      Against Cancellation Fees for HOA Documents:  An HOA      cannot collect a cancellation fee for HOA sales disclosure documents in      either of two situations: (1) a request is cancelled in writing by the      party who placed the order and work had not yet been performed on the      order; or (2) a request is cancelled in writing and the HOA had been      compensated for any work performed.
  5. Landlord May      Dispose Abandoned Personal Property Less Than $700: After      termination of a tenancy, the total resale value of personal property left      behind by a tenant that the landlord must sell at a public auction (rather      than dispose of or retain for his or her own use), has been increased from      $300 to $700, if certain procedures are followed. This law, however, also      prohibits a landlord from assessing any storage cost if the tenant      reclaims personal property within 2 days of vacating the premises.

Nancy Moeller, CPA, Real Estate Broker

Seven Gables Real Estate

License #01727426

http://www.TheMoellerTeam.com

Direct: 714 276-7006

Fax: 714 917-2293

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Mortgage Debt Relief Act Extended

3 Jan

Struggling homeowners who are considering a short sale or modification may still be eligible for tax relief in 2013.

The “fiscal cliff bill” passed by Congress on January 1 included a provision to exclude qualifying borrowers from paying taxes on debt forgiven through a short sale, foreclosure, or loan modification.

Known as the Mortgage Debt Relief Act of 2007, the act was scheduled to expire December 31, 2012, but received an extension for another year.

As of September 30, a report from settlement monitor Joseph Smith found servicers provided 21,833 borrowers with $2.55 billion in relief through first lien principal reduction modifications, which averages to about $116,929 in debt forgiveness for each borrower.

If the act did not receive an extension, qualifying borrowers who received relief in the form of forgiven debt would be liable to pay taxes on the debt.

Nancy Moeller, CPA, Real Estate Broker

Seven Gables Real Estate

License #01727426

http://www.TheMoellerTeam.com

Direct: 714 276-7006

Fax: 714 917-2293

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2013 HAFA

18 Dec

HAFA is set to expire December 31st. 2012. However, it was just released yesterday that a “new HAFA” program will set to come out Feb. 1st 2013. There will be positive changes to the new HAFA program for short sales. One of the changes mentioned is that the servicers will have to make a decision on the short sale within 30 days of a completed package. Another change is that if a borrower is 90 days or more delinquent and has a FICO score that is less than 620, he or she is considered to have a pre-determined hardship, which means they do not need to further validate a hardship past the hardship affidavit form. 2013 HAFA will allow homeowners to submit an application for HAFA who remain current on their loan, while also providing a detailed explanation of their hardship.

The changes do not apply to mortgages backed by Fannie or Freddie. The GSEs previously announced their own revisions to short sale guidelines.

For questions on if you should apply for a HAFA short sale, please contact:

Shauna Drumm

The TriStone Group

Seven Gables Real Estate

Short Sale Division Manager

DRE# 01454094

mobile: 714-865-3902

fax: 949-242-4108

web: tristonerealtygroup.com

Home Inventory At A Historic Low

12 Dec

Last year (2011) in December the Orange County inventory had 8,900 homes listed for sale. As of today (2012), we have a total of 3,400 homes listed for sale. That is 5,500 less homes for buyers trying to take advantage of the extremely low interest rates . It has occurred in such a short period of time which has created something we have not seen in our market in years. It has created false market expectations as well as seller demand in our market place.

Some experts have stated that the market is improving, However, think about this, there are multiple buyers trying to buy the same home. They are willing to pay over listing price and they arbitrarily increase their offer to an inflated purchase price. Once they try and obtain a loan and the property appraises for less, we are faced with major issues in trying to close the sale.

Prices have not increased because of true supply and demand but instead due to anomaly in the supply available to buyers. Unfortunately, unemployment and our overall economy is still suffering which is why I believe we are not yet out of a depressed market. The market is merely being masked by the low inventory phenomenon.

Shauna Drumm

The TriStone Group

Seven Gables Real Estate
Short Sale Division Manager
DRE# 01454094
mobile: 714-865-3902
fax: 949-242-4108
web: tristonerealtygroup.com

 

HAFA Program Expiring

20 Nov

The government program known as HAFA (Home Affordable Foreclosure Alternative Program ) is set to expire December 31st. 2012. This program has been a crucial program for many sellers doing a short sale. It offers seller incentives and helps to streamline the short sale process. It also gives the short sale lender incentives as well. It has been a win/win for both parties involved.

Over the past six months we have seen an increase in seller incentive programs from the lenders following the lead that the HAFA program has set. Although the expiration is around the corner, I fully expect HAFA to be extended OR similar programs to be instated that will continue to encourage banks and sellers to participate in the act of short selling properties to avoid foreclosure.

If you have questions on what incentive programs are available to you after December 31st. please contact us for a free consultation.

Shauna Drumm

The TriStone Group

Seven Gables Real Estate
Short Sale Division Manager
DRE# 01454094
mobile: 714-865-3902

fax: 949-242-4108
web: tristonerealtygroup.com

The Highest Offer Is not Always Best

14 Nov

Something to consider as a listing agent and as a seller……The highest offer may not always be the best offer. It would be in your best interest as a seller to have back up offers in place in the case the chosen offer cannot close. Lately we have seen several escrows cancel because the buyer’s appraisal has come in lower than the offer price. Many buyers do not have the ability to bring in cash when the appraisal does not support the offer price.As a seller it is wise to check comps and chose an offer that is fair market value to reduce the risk of time wasted on a offer that cannot get financing due to the appraisal.

 There is a buzz in the air that home prices are increasing. Current inventory is extremely low which is forcing bidding wars on listed properties, however, we are not even close to being out of the depressed market we are in and the appraisal regulations will not allow for a huge spike in values.

A buyers lender will only lend on the appraised value of the home, regardless of the sales price. There currently is a shortage of homes for sale in Orange County and it is only to worsen in the year to come. I read an article this morning in the Orange County register written by Jeff Collins that indicates the housing inventory has fallen to an 8 year low.

Orange County had just 3,753 homes for sale as of Thursday, the smallest number on the market in the eight years that Steve Thomas of ReportsOnHousing.com has been tracking the county’shousing inventory.

Thomas said the active listing inventory dropped 24 percent below the prior low established in March 2005, when there were just 4,912 homes on the market.

Listings have been dropping because fewer homeowners are putting their properties up for sale, Thomas said. In addition, the number of bank-owned foreclosures has been dwindling over the past year.

Thomas warned, however, that home sellers shouldn’t see the current market as an opportunity to cash in. Buyers are not going to pay an additional 10 percent above the last comparable sale because are appreciating at a very slow rate, not thousands of dollars every month.

“Regardless of the craziness of today’s market, buyers are still not ready to pay well above recent comparable sales,” Thomas said. “Instead, prices will gradually increase.”

Shauna Drumm

The TriStone Group

Seven Gables Real Estate
Short Sale Division Manager
DRE# 01454094
mobile: 714-865-3902
fax: 949-242-4108
web: tristonerealtygroup.com

Freddie and Fannie try to streamline short sales

7 Nov
Fannie Mae and Freddie Mac launched new short sale guidelines to streamline the short sale process. 
 
The program takes effect Nov. 1., which is part of the Federal Housing Finance Agency’s Servicing Alignment Initiative, allows servicers to approve a short sale for borrowers even if they have yet to default.
 
The program also removes barriers created by some subordinate lien holders by limiting subordinate-lien payments to $6,000.
 
Borrowers will have the option of getting a short sale approved by the servicer before they actually default on a payment. Fannie Mae is cutting down on the amount of documentation required to complete a short sale under hardship circumstances and eliminating certain documentation requirements for borrowers who are 90 days or more delinquent.
 
“Short sales have become an increasingly important tool in preventing foreclosures and stabilizing communities,” said Leslie Peeler, senior vice president, National Servicing Organization, Fannie Mae. “We want to help as many homeowners avoid foreclosure as possible. These new guidelines will open doors to help more homeowners qualify for short sales, remove barriers to completing short sales, and make the process more efficient for homeowners and servicers.”
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